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art.003/8/003/7/003/6/003/5/003/4/003/3/003/2/003/1

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     ARTICLE 3 AS AMENDED

RELATING TO GOVERNMENT REFORM AND REORGANIZATION

     SECTION 1. Sections 2-26-3, 2-26-4, 2-26-5, 2-26-6, 2-26-7, 2-26-8, 2-26-9 and 2-26-10

of the General Laws in Chapter 2-26 entitled "Hemp Growth Act" are hereby amended to read as

follows:

     2-26-3. Definitions.

     When used in this chapter, the following terms shall have the following meanings:

     (1) “Applicant” means any person, firm, corporation, or other legal entity who or that, on

his, her, or its own behalf, or on behalf of another, has applied for permission to engage in any act

or activity that is regulated under the provisions of this chapter.

     (2) “Cannabis” means all parts of the plant of the genus marijuana, also known as marijuana

sativa L. whether growing or not; the seeds thereof; the resin extracted from any part of the plant;

and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds,

or resin regardless of cannabinoid content or cannabinoid potency including “marijuana” and

“industrial hemp” or “industrial hemp products” which satisfy the requirements of this chapter.

     (3) “Cannabidiol” or “CBD” means cannabidiol (CBD) derived from a hemp plant as

defined in § 2-26-3, not including products derived from exempt cannabis plant material as defined

in 21 C.F.R. § 1308.35.

     (4) “Department” means the office of cannabis regulation within the department of

business regulation “Cannabis control commission” or “commission” means the Rhode Island

cannabis control commission established by § 21-28.11-4.

     (5) “Division” means the division of agriculture in the department of environmental

management.

     (6) “Grower” means a person or entity who or that produces hemp for commercial

purposes.

     (7) “Handler” means a person or entity who or that produces or processes hemp or

agricultural hemp seed into commodities or who manufactures hemp products.

     (8) “Hemp” or “industrial hemp” means the plant Cannabis sativa L. and any part of that

plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts,

and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of

not more than three-tenths percent (0.3%) on a dry weight or per volume basis regardless of

moisture content, and which satisfies the requirements of this chapter.

     (9) “Hemp-derived consumable CBD product” means any product meant for ingestion,

including, but not limited to, concentrates, extracts, and cannabis-infused foods and products,

which contains cannabidiol derived from a hemp plant as defined in this section, which shall only

be sold to persons age twenty-one (21) or older, and which shall not include products derived from

exempt cannabis plant material as defined in 21 C.F.R. § 1308.35.

     (10) “Hemp products” or “industrial hemp products” means all products made from the

plants, including, but not limited to, concentrated oil, cloth, cordage, fiber, food, fuel, hemp-derived

consumable CBD products, paint, paper, construction materials, plastics, seed, seed meal, seed oil,

and seed certified for cultivation, which satisfy the requirements of this chapter.

     (11) “Licensed CBD distributor” means a person licensed to distribute hemp-derived

consumable CBD products pursuant to this chapter.

     (12) “Licensed CBD retailer” means a person licensed to sell hemp-derived consumable

CBD products pursuant to this chapter.

     (13) “Cannabis office” or “office” means the cannabis office established by § 21-28.11-

18.1.

     (13)(14) “THC” means tetrahydrocannabinol, the principal psychoactive constituent of

cannabis.

     (14)(15) “THCA” means tetrahydrocannabinol acid.

     2-26-4. Hemp an agricultural product.

     Hemp is an agricultural product that may be grown as a crop, produced, possessed,

distributed, sold at retail, and commercially traded pursuant to the provisions of this chapter. Hemp

is subject to primary regulation by the department commission. The division may assist the

department commission in the regulation of hemp growth and production.

     2-26-5. Authority over licensing and sales.

     (a) The department commission shall prescribe rules and regulations for the licensing and

regulation of hemp growers, handlers, licensed CBD distributors, and licensed CBD retailers and

persons employed by the applicant not inconsistent with law, to carry into effect the provision of

this chapter and shall be responsible for the enforcement of the licensing.

     (b) All growers, handlers, licensed CBD distributors, and licensed CBD retailers must have

a hemp license issued by the department commission. All production, distribution, and retail sale

of hemp-derived consumable CBD products must be consistent with any applicable state or local

food processing and safety regulations, and the applicant shall be responsible to ensure its

compliance with the regulations and any applicable food safety licensing requirements, including,

but not limited to, those promulgated by the department of health.

     (c) The application for a hemp license shall include, but not be limited to, the following:

     (1)(i) The name and address of the applicant who will supervise, manage, or direct the

growing and handling of hemp and the names and addresses of any person or entity partnering or

providing consulting services regarding the growing or handling of hemp; and

     (ii) The name and address of the applicant who will supervise, manage, or direct the

distribution or sale of hemp-derived consumable CBD products, and names and addresses of any

person or entity partnering or providing consulting services regarding the distribution or sale of

hemp-derived CBD products.

     (2) A certificate of analysis that the seeds or plants obtained for cultivation are of a type

and variety that do not exceed the maximum concentration of delta-9 THC, as set forth in § 2-26-

3; any seeds that are obtained from a federal agency are presumed not to exceed the maximum

concentration and do not require a certificate of analysis.

     (3)(i) The location of the facility, including the Global Positioning System location, and

other field reference information as may be required by the department commission with a tracking

program and security layout to ensure that all hemp grown is tracked and monitored from seed to

distribution outlets; and

     (ii) The location of the facility and other information as may be required by the department

commission as to where the distribution or sale of hemp-derived consumable CBD products will

occur.

     (4) An explanation of the seed-to-sale tracking, cultivation method, extraction method, and

certificate of analysis or certificate of analysis for the standard hemp seeds or hemp product if

required by the department commission.

     (5) Verification, prior to planting any seed, that the plant to be grown is of a type and

variety of hemp that will produce a delta-9 THC concentration of no more than three-tenths of one

percent (0.3%) on a dry-weight basis.

     (6) Documentation that the licensee and/or its agents have entered into a purchase

agreement with a hemp handler, processor, distributor, or retailer.

     (7) All applicants:

     (i) Shall apply to the state police, attorney general, or local law enforcement for a National

Criminal Identification records check that shall include fingerprints submitted to the Federal

Bureau of Investigation. Upon the discovery of a disqualifying conviction defined in subsections

(c)(7)(iv) and (c)(7)(v), and in accordance with the rules promulgated by the department

commission, the state police shall inform the applicant, in writing, of the nature of the conviction,

and the state police shall notify the department commission, in writing, without disclosing the

nature of the conviction, that a conviction has been found;

     (ii) In those situations in which no conviction has been found, the state police shall inform

the applicant and the department commission, in writing, of this fact;

     (iii) All applicants shall be responsible for any expense associated with the criminal

background check with fingerprints.

     (iv) Any applicant who has been convicted of any felony offense under chapter 28 of title

21, or any person who has been convicted of murder; manslaughter; first-degree sexual assault;

second-degree sexual assault; first-degree child molestation; second-degree child molestation;

kidnapping; first-degree arson; second-degree arson; mayhem; robbery; burglary; breaking and

entering; assault with a dangerous weapon; or any assault and battery punishable as a felony or

assault with intent to commit any offense punishable as a felony, shall, subject to § 28-5.1-14, be

disqualified from holding any license or permit under this chapter. The department commission

shall notify any applicant, in writing, of a denial of a license pursuant to this subsection.

     (v) For purposes of this section, “conviction” means, in addition to judgments of conviction

entered by a court subsequent to a finding of guilty, or plea of guilty, those instances where the

defendant has entered a plea of nolo contendere and has received a jail sentence or a suspended jail

sentence, or those instances wherein the defendant has entered into a deferred sentence agreement

with the Rhode Island attorney general and the period of deferment has not been completed.

     (8) Any other information as set forth in rules and regulations as required by the department

commission.

     (d) [Deleted by P.L. 2019, ch. 88, art. 15, § 1.]

     (e) The department commission shall issue a hemp license to the grower or handler

applicant if he, she, or it meets the requirements of this chapter, upon the applicant paying a

licensure fee of two thousand five hundred dollars ($2,500). The license shall be renewed every

two (2) years upon payment of a two thousand five hundred dollar ($2,500) renewal fee. Any

licensee convicted of any disqualifying offense described in subsection (c)(7)(iv) shall, subject to

§ 28-5.1-14, have his, her, or its license revoked. All license fees shall be directed to the department

commission to help defray the cost of enforcement. The department commission shall collect a

nonrefundable application fee of two hundred fifty dollars ($250) for each application to obtain a

license.

     (f) Any grower or handler license applicant or license holder may also apply for and be

issued one (1) CBD distributor and/or one (1) CBD retailer license at no additional cost, provided

their grower or handler license is issued or renewed. CBD distributor and CBD retailer licenses

shall be renewed each year at no additional fee provided the applicant also holds or renews a grower

and/or handler license.

     (g) For applicants who do not hold, renew, or receive a grower or handler license, CBD

distributor and CBD retailer licenses shall have a licensure fee of five hundred dollars ($500). The

licenses shall be renewed each year upon approval by the department commission and payment of

a five hundred dollar ($500) renewal fee.

     (h) The commission shall have the authority to temporarily suspend hemp applications and

issuance of new hemp licenses for a defined period if the commission determines that such action

is necessary to:

     1. Conduct a study or evaluation of market conditions, supply and demand dynamics, or

regulatory impacts;

     2. Ensure adequate oversight and compliance with existing licensees; and

     3. Address any identified risks to public health, safety, or environmental welfare.

     (i) During a suspension period, the commission may continue to process renewal

applications of existing licensees.

     2-26-6. Rulemaking authority.

     (a) The department commission shall adopt rules to provide for the implementation of this

chapter, which shall include rules to require hemp to be tested during growth for THC levels and

to require inspection of hemp during sowing, growing season, harvest, storage, and processing.

Included in these rules should be a system requiring the licensee to submit crop samples to an

approved testing facility, as determined by the department commission for testing and verification

of compliance with the limits on delta-9 THC concentration.

     (b) The department commission shall prescribe rules and regulations for all operational

requirements for licensed growers, handlers, CBD distributors, and retailers, and to ensure

consistency in manufactured products and appropriate packaging, labeling, and placement with

respect to retail sales not inconsistent with law, to carry in effect the provisions of this chapter.

     (c) The department commission shall not adopt, under this or any other section, a rule that

would prohibit a person or entity to grow, distribute, or sell hemp based solely on the legal status

of hemp under federal law.

     (d) The department commission may adopt rules and regulations based on federal law

provided those rules and regulations are designed to comply with federal guidance and mitigate

federal enforcement against the licenses issued under this chapter.

     (e) [Deleted by P.L. 2020, ch. 1, § 2 and P.L. 2020, ch. 2, § 2.]

     2-26-7. Licensure.

     (a) Except as provided in this section, beginning sixty (60) days after the effective date of

this chapter, the department commission shall accept the application for licensure to cultivate hemp

submitted by the applicant.

     (b) A person or entity, licensed by the department commission pursuant to this chapter,

shall allow hemp crops, throughout sowing, year-long growing seasons, harvest storage, and

processing, manufacturing, and retail facilities to be inspected and tested by and at the discretion

of the department commission and as required pursuant to any applicable state or local food

processing and safety regulations, including, but not limited to those, promulgated by the Rhode

Island department of health.

     2-26-8. Methods of extraction.

     (a) The department commission shall adopt rules regarding permissible methods of

extraction.

     (b) No butane method of extraction shall be permitted by the department commission.

     2-26-9. Research and educational growth by institutions of higher education.

     (a) The department commission is authorized to certify any higher educational institution

in Rhode Island to grow or handle, or assist in growing or handling, industrial hemp for the purpose

of agricultural or academic research where such higher educational institution submits the

following to the department commission:

     (1) The location where the higher educational institution intends to grow or cultivate the

industrial hemp;

     (2) The higher educational institution’s research plan; and

     (3) The name of the employee of the higher educational institution who will supervise the

hemp growth, cultivation, and research.

     (b) Growth for purposes of agricultural and educational research by a higher educational

institution shall not be subject to the licensing requirements set forth in § 2-26-5.

     (c) The applicant is encouraged to partner with an institution of higher learning within the

state of Rhode Island to develop best practices for growing and handling hemp.

     (d) The department commission shall maintain a list of each higher education institution

certified to grow or cultivate industrial hemp under this chapter.

     2-26-10. Enforcement of violations of chapter.

     (a) Notwithstanding any other provision of this chapter, if the director of the department

chairperson of the commission, or his or her designee, has cause to believe that a violation of any

provision of this chapter or any regulations promulgated hereunder has occurred by a licensee who

or that is under the department's commission's jurisdiction pursuant to this chapter, or that any

person or entity is conducting any activities requiring licensure by the department commission

under this chapter or the regulations promulgated hereunder without such licensure, the director

chairperson, or his or her designee, may, in accordance with the requirements of the administrative

procedures act, chapter 35 of title 42:

     (1) Revoke or suspend a license;

     (2) Levy an administrative penalty in an amount established pursuant to regulations

promulgated by the department commission;

     (3) Order the violator to cease and desist such actions;

     (4) Require a licensee or person or entity conducting any activities requiring licensure

under this chapter to take such actions as are necessary to comply with this chapter and the

regulations promulgated thereunder; or

     (5) Any combination of the above penalties.

     (b) If the director of the department chairperson of the commission finds that public health,

safety, or welfare requires emergency action, and incorporates a finding to that effect in his or her

order, summary suspension of license and/or cease and desist may be ordered pending proceedings

for revocation or other action.

     SECTION 2. Sections 5-43-1 and 5-43-2 of the General Laws in Chapter 5-43 entitled

"Instruction in Jiu-Jitsu or Karate" are hereby repealed.

     5-43-1. City and town licensing power.

     The city and town councils of the several cities and towns may license schools and other

institutions offering instruction in jiu-jitsu and karate. The fee for this license shall not exceed

twenty-five dollars ($25.00); provided, that nonprofit organizations and governmental agencies

shall be exempt from paying that fee.

     5-43-2. Penalty for violations.

     Any city or town issuing licenses under this chapter may impose a fine not in excess of

twenty dollars ($20.00) upon anyone convicted of offering instruction in jiu-jitsu or karate without

that license.

     SECTION 3. Section 16-32-2 of the General Laws in Chapter 16-32 entitled "University

of Rhode Island [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby

amended to read as follows:

     16-32-2. Board of Trustees established.

     (a) There is hereby created a board of trustees for the university of Rhode Island, sometimes

referred to as the “board” or “board of trustees,” which shall be and is constituted a public

corporation, empowered to sue and be sued in its own name; to borrow money; to compromise and

settle claims; to have a seal; and to make and execute contracts and other instruments necessary or

convenient to the exercise of its powers; and to exercise all the powers, in addition to those

specifically enumerated in this chapter, usually appertaining to public corporations entrusted with

control of postsecondary educational institutions and functions. Upon its organization, the board

shall be vested with the legal title to all property, real and personal, now owned by and/or under

the control or in the custody of the council on postsecondary education for the use of the university

of Rhode Island, including all its departments, divisions, and branches, sometimes referred to as

the property.

     (b) The board is empowered to hold and operate the property in trust for the state; to

acquire, hold, and dispose of the property and other like property as deemed necessary for the

execution of its corporate purposes. The board is made successor to all powers, rights, duties, and

privileges for the university of Rhode Island formerly belonging to the council on postsecondary

education pertaining to postsecondary education and the board of governors for higher education.

     (c) The board shall be the employer of record for the university. It shall retain all authority

formerly vested in the council on postsecondary education and the board of education regarding

the employment of faculty and staff at the university of Rhode Island. The board shall appoint the

president of the university and shall review their performance on an annual basis.

     (1) The board is empowered to enter into contracts and agreements with the council on

postsecondary education and/or the department of administration related to employee benefits,

including but not limited to retirement benefits, health, dental, vision and life insurance, disability

insurance, workers’ compensation, and tuition waivers to maximize the state’s and university’s

purchasing and investment portfolio and educational opportunities for the benefit of its employees.

     (2) The board is empowered to enter into collective bargaining agreements as appropriate

with its employees and all existing collective bargaining agreements in effect when the board is

established pursuant to § 16-32-2.2 shall be transferred from the council on postsecondary

education to the board.

     (d) The board shall make rules and regulations for the control and use of all public

properties and highways under its care, and for violations of those rules and regulations; penalties,

up to one hundred dollars ($100) and costs for any one offense, may be imposed by any district

court or police court in the city or town where the violation occurs; and, in general, the board shall

take all actions necessary for the proper execution of the powers and duties granted to, and imposed

upon, the board by the terms of this chapter.

     (e) The board shall make rules and regulations pursuant to chapter 2 of title 37 to implement

its responsibilities as a public agency for procurement purposes as defined in § 37-2-7(16).

     (1) Notwithstanding the provisions of § 37-2-22, small procurements made by the board

and the university shall not exceed an aggregate amount of fifty thousand dollars ($50,000) for

construction and ten thousand dollars ($10,000) for all other purchases, regardless of the source of

funding, and shall be made in accordance with small purchase regulations promulgated by the

board. These thresholds may be increased annually through an amendment to the small purchase

regulations promulgated by the board of trustees, to reflect the annual increase in the federal

Consumer Price Index published by the United States Department of Labor from the date of any

prior adjustment.

     (f) The board shall evaluate data on which to base performance of the university as

described in subsection (g) of this section which shall be defined by the president of the university.

These measures may include and incorporate outcomes or goals from multiple, previous years. The

lack of information from previous years, however, will not affect the use of performance-based

measures.

     (g) The university of Rhode Island shall have unique measures consistent with its purpose,

role, scope, and mission. The board shall provide faculty and students an opportunity to provide

input on the development of performance measures.

     (1) The performance-based measures shall include, but not be limited to, the following

metrics:

     (i) The number and percentage, including growth in relation to enrollment and prior years

of bachelor’s degrees awarded to first-time, full-time students within four (4) years and six (6)

years, including summer graduates;

     (ii) The number of degrees awarded that are tied to Rhode Island’s high demand, high-

wage employment opportunities consistent with the institution’s mission;

     (iii) One metric that applies only to the university, in consultation with the president, which

shall consider faculty, staff, and student input; and

     (iv) Any other metrics that are deemed appropriate by the board.

     (2) Weight may be assigned to any of the aforementioned metrics to reinforce the mission

of the university, the economic needs of the state, and the socio-economic status of the students.

     (h) The board shall hold the university accountable for developing and implementing

transfer pathways for students from the community college of Rhode Island and Rhode Island

college.

     (i) The board shall adopt a process requiring every academic program at the university to

accept for credit the advanced placement subject test scores of students who obtain a three (3) or

better in any advanced placement course.

     (j) The board shall supervise, coordinate, and/or authorize audits, civil and administrative

investigations, and inspections or oversight reviews, when necessary, relating to expenditure of

state or federal funds, or to any and all university programs and operations, as well as the

procurement of any supplies, services, or construction, by the university. In the course of an audit

or investigation, the board authorized auditor(s) shall review statutes and regulations of the

university and shall determine if the university is in compliance and shall make recommendations

concerning the efficiency of operations, and the effect of such statutes or regulations on internal

controls and the prevention and detection of fraud, waste, and abuse. The board authorized

auditor(s) may recommend policies or procedures that may strengthen internal controls, or assist in

the prevention or detection of fraud, waste, and abuse or mismanagement. Any audits conducted

shall be transmitted to the office of internal audit and program integrity established in chapter 7.1

of title 35.

     SECTION 4. Sections 21-28.11-4 and 21-28.11-10.1 of the General Laws in Chapter 21-

28.11 entitled "The Rhode Island Cannabis Act" are hereby amended to read as follows:

     21-28.11-4. Cannabis control commission.

     (a) Establishment of commission. There is hereby established an independent

commission known as the Rhode Island Cannabis Control Commission (commission). The purpose

of the commission is to oversee the regulation, licensing and control of adult use and medical

cannabis and upon transfer of powers pursuant to the provisions of § 21-28.11-10.1, to exercise

primary responsibility to oversee the regulation, licensing and control of all cannabis and marijuana

use to include medical marijuana.

     (b) Appointment of commissioners. The Rhode Island Cannabis Control Commission

shall consist of three (3) voting commissioners as follows:

     (1) The governor shall appoint, with the advice and consent of the senate, the three (3)

voting members of the commission. The speaker of the house shall, within thirty (30) days of the

effective date of this chapter, submit to the governor a list of three (3) individuals that the governor

shall give due consideration in appointing one individual from this list. The governor shall appoint

the other two (2) commissioners without regard to the list submitted by the speaker of the house.

The governor shall designate one of the members to serve as chairperson of the commission. Within

forty (40) days of the effective date of this chapter, the governor shall submit to the senate for

advice and consent the list of three (3) individuals for appointment to the commission along with

the governor’s designation of chairperson.

     (2) Prior to appointment to the commission, a background investigation shall be conducted

into the financial stability, integrity and responsibility of each appointee, including the appointee’s

reputation for good character, and honesty. No commissioner or commissioner’s spouse, or child

shall have any interest whatsoever in any entity regulated by the commission.

     (c) Commissioner requirements. Each commissioner shall be a resident of the state within

ninety (90) days of appointment, and while serving on the commission, shall not:

     (1) Hold, or be a candidate for, federal, state or local elected office;

     (2) Hold an appointed office or other employment in a federal, state or local government;

or

     (3) Serve as an official in a political party.

     (d) Term Limits. Term limits on the initial commissioners shall be as follows: The

appointee chosen after consideration of the list provided to the governor by the speaker of the house

shall serve an initial term of three (3) years and shall be eligible for reappointment in accordance

with this section. Of the appointees chosen by the governor without regard to the list submitted by

the speaker of the house, one shall serve an initial term of two (2) years, and one shall serve an

initial term of one year and both shall be eligible for reappointment in accordance with this section.

     (1) Each initial commissioner is eligible for reappointment for one six (6) year term or until

a successor is appointed. Each subsequent commissioner shall serve for a term of six (6) years or

until a successor is appointed. Every person appointed or reappointed to fill a vacancy on the

cannabis control commission shall be appointed in the manner established pursuant to this section.

     (2) If a vacancy is created prior to the expiration of any commissioner’s term, said vacancy

shall be filled in the manner established pursuant to this section. Any person appointed to fill said

vacancy shall complete the commissioner’s unexpired term and shall then be eligible for

reappointment for one additional term pursuant to this section.

     (e) Compensation. The chairperson of the commission shall devote their full time attention

to the duties of the commission. Upon confirmation, the chairperson shall become a state employee

and shall receive a salary as determined by the governor subject to appropriation by the general

assembly. The remaining commissioners shall not be state employees but shall receive a monthly

stipend as determined by the governor, subject to appropriation by the general assembly, and shall

devote sufficient time and attention to the commission to adequately perform their duties.

     (f) Records. The commission shall keep a record of the proceedings of the commission

and the chair shall be the custodian and keeper of the records of all books, documents and papers

filed by the commission and of its minute book. The chair shall cause copies to be made of all

minutes and other records and documents of the commission and shall certify that such copies are

true copies and all persons dealing with the commission may rely upon such certification. These

records shall also be subject to the provisions of title 38, “public records.” The chair shall have and

exercise supervision and control over all the affairs of the commission. The chair shall preside at

all hearings at which the chair is present and shall designate a commissioner to act as chair in the

chair’s absence. To promote efficiency in administration, the chair shall make such division or re-

division of the work of the commission among the commissioners, as the chair deems expedient.

     (g) Conduct of hearings. The commissioners shall, if so directed by the chair, participate

in the hearing and decision of any matter before the commission.

     (1) For purposes of this section, “formal matter”, as so designated by the chair, shall include

all non-procedural matters to include, but not limited to, hearings subject to the provisions of

chapter 35 of title 42 (the “administrative procedures act”) and all decisions relative to the awarding

of a license or to the denial or revocation of licenses. A majority of the commissioners is required

to hear and approve all formal matters.

     (2) For purposes of this section, “procedural matters”, as so designated by the chair, include

scheduling, inclusion of agenda items, administrative compliance decisions, ministerial matters,

routine clerical functions, and any other act delegated by the commission to be performed by an

employee of the commission or the cannabis office. Any procedural or administrative matter may

be heard, examined and investigated by a single commissioner or an employee of the commission

or the cannabis office as designated and assigned by the chair, with the concurrence of one other

commissioner. If designated by the commission or the cannabis office, the designated employee

shall make a report in writing relative to the hearing, examination and investigation of every

procedural or administrative matter. For the purposes of hearing, examining and investigating any

procedural or administrative matter, the designated employee shall have all of the powers conferred

upon a commissioner by this section. Any procedural or administrative decision made by a single

commissioner or designated employee may be appealed within ten (10) days of issuance of the

decision for a hearing before the full commission.

     (3) The commission may designate a hearing officer to conduct hearings and make

recommendations of decision to the commission in contested cases consistent with chapter 35 of

title 42.

     (h) Ethics. The provisions of chapter 14 of title 36, the state code of ethics, shall apply to

the commissioners and to employees operating under the jurisdiction of the commission to include,

but not limited to, personnel of the cannabis office; provided, however, that the commission may

promulgate an internal code of ethics for all members and employees that may be more restrictive

than the provisions of chapter 14 of title 36. A copy of any internal code of ethics adopted or as

amended shall be filed with the state ethics commission. The internal code may include provisions

reasonably necessary to carry out the purposes of this chapter.

     (i) Public body. The cannabis control commission shall be a public body for the purposes

of chapter 46 of title 42 (the “open meetings act”).

     (j) Finance. The commission shall, for the purposes of compliance with state finance law,

and subject to appropriation by the general assembly, operate as an independent state agency and

shall be subject to the laws applicable to agencies under the control of the governor; provided,

however, that the chairperson may identify any additional instructions or actions necessary for the

department of administration to manage fiscal operations in the state accounting system and meet

statewide and other governmental accounting and audit standards. The commission shall properly

classify the commission’s operating and capital expenditures, and shall not include any salaries of

employees in the commission’s capital expenditures. Unless otherwise exempted by law, the

commission shall participate in any other available state administrative services including, but not

limited to, the state payroll system, the state retirement system, and state purchases.

     (k) Prohibition on discrimination. The commission and all personnel and employees

operating under the jurisdiction of the commission to include, but not limited to, personnel of the

cannabis office, shall not unlawfully discriminate by considering race, color, religion, sex, sexual

orientation, gender identity or expression, age, national origin, or disability in granting, denying,

or revoking a license, nor shall any person, corporation, or business firm which is licensed pursuant

to the provisions of this chapter unlawfully discriminate against or segregate any person based on

these grounds. All businesses licensed by the commission shall operate on a nondiscriminatory

basis, according to equal employment treatment and access to their services to all persons, unless

otherwise exempted by the laws of the state. Any licensee who fails to comply with this policy is

subject to any disciplinary action that is consistent with the legal authority and rules and regulations

of the commission. The commission shall cooperate with the state equal opportunity office to

prevent any person, corporation, or business firm from unlawfully discriminating because of race,

color, religion, sex, sexual orientation, gender identity or expression, age, national origin, or

disability or from participating in any practice which may have a disparate effect on any protected

class within the population. The state equal opportunity office shall monitor the equal employment

opportunity activities and affirmative action plans of the commission.

     21-28.11-10.1. Transitional period and transfer of authority.

     (a) To protect public health and public safety, upon the effective date of this chapter [May

25, 2022] until final issuance of the commission’s rules and regulations promulgated pursuant to

the provisions of this chapter, there shall exist a transitional period of regulatory and enforcement

authority regarding the production, possession, regulation, distribution, sale, and use of cannabis

relating to the sale by hybrid cannabis retailers of adult use cannabis pursuant to § 21-28.11-10.

     (b) During the transitional period, the office of cannabis regulation shall prescribe such

forms, procedures, and requirements as necessary to facilitate the acquisition of hybrid retail and

cultivation licenses by compassion centers and cultivators licensed pursuant to chapter 28.6 of this

title.

     (c) Such forms, procedures, and requirements shall be posted on the website of the office

of cannabis regulation no later than October 15, 2022, at which time an application period will

commence. Applications shall be received, reviewed, and approved on a rolling basis provided that

in no case shall an approved hybrid retailer begin adult use sales before December 1, 2022.

     (d) The forms, procedures, and requirements prescribed by the office of cannabis regulation

shall incorporate, but shall not be limited to, the following:

     (1) Requirements pertaining to the physical premises of hybrid retail licensees. Where

physically possible these shall include prospective licensee plans to physically separate marijuana

and marijuana products designated for adult use and medical sales, respectively, in inventory,

storage, and customer-facing floor and display areas; plans to physically separate sales areas for

adult use and medical sales, which may be provided by a temporary or semi-permanent physical

barrier; plans to provide and maintain a patient consultation area that will allow privacy for

confidential consultation with qualifying patients; and plans to prioritize patient and caregiver

identification verification and physical entry into retail areas in the event of capacity or other

constraints; however, if the premises of a hybrid retail licensee does not allow the licensee to meet

the requirements of this subsection or would cause undue hardship on the licensee, the office of

cannabis regulation may authorize the hybrid retail licensee to conduct adult use sales at an adjunct

location. In authorizing any such adjunct location, the office shall require, at a minimum, the

following:

     (i) The adjunct location must be physically located within the same municipality and

geographic zone;

     (ii) The adjunct location must comply with all municipal zoning requirements and obtain

municipal approval;

     (iii) The approval of any adjunct location will not cause undue hardship upon another

licensed cannabis retailer; and

     (iv) In the instance that an adjunct location is approved by the office, the hybrid cannabis

retailer shall not be permitted to engage in the sale of cannabis for adult use at more than one

premises.

     (2) Requirements pertaining to inventory, product, and sales tracking. These shall include

prospective licensee submission of plans to electronically separate finished marijuana products

designated for medical or adult use sales in hybrid licensees’ inventory and sales tracking systems.

If prospective hybrid licensees are conducting cultivation activities, they shall submit plans to

distinguish between sales of marijuana or finished marijuana products at wholesale based on

designation for medical or adult use sales.

     (3) Requirements relating to the maintenance of medical marijuana program service levels.

These shall include prospective licensee submission of comprehensive policies and procedures

detailing plans to maintain a sufficient quantity and variety of medical marijuana products, and if

substitutions of medical marijuana products with adult use marijuana products are to be made, a

justification for such substitutions. Prospective hybrid licensees shall also be required to designate

an individual who will be primarily responsible for maintenance of medical marijuana program

service levels and ongoing compliance with existing program requirements, rules, and regulations.

     (4) Requirements relating to operating plans, policies, and procedures. These shall include

prospective licensee submission, maintenance of, and adherence to a set of written standard

operating procedures that encompass both adult use and medical marijuana service lines. These

operating plans and procedures shall take the form of an updated operations manual as currently

required under medical marijuana program regulations and shall include, but not be limited to,

policies and procedures relating to the maintenance of medical marijuana program service levels

as defined in this section.

     (5) Requirements relating to the advertising of cannabis and cannabis products by hybrid

cannabis retailers who have been permitted to sell adult use cannabis and hybrid cannabis

cultivators who have been permitted to cultivate adult use cannabis pursuant to the provisions of

this chapter.

     (e) Notwithstanding the foregoing provisions of this section, all prospective and approved

applicants for hybrid cannabis retailer and cannabis cultivator licenses under this chapter shall

maintain compliance with the existing provisions of chapter 28.6 of this title and the regulations

promulgated thereunder until final issuance of the commission’s rules and regulations, including,

but not limited to, existing restrictions and requirements related to financial disclosures; registration

of owners, managers, key persons, agents, and employees; product testing; packaging and labeling;

transportation; and home delivery.

     (f) Forms, procedures, and requirements relating to this transitional period may be amended

by the office of cannabis regulation or the commission up until the final issuance of the

commission’s regulations pursuant to the provisions of this chapter at which time the forms,

procedures, and requirements will be superseded by the commission’s final rules and regulations.

     (g) Upon final issuance of the commission’s rules and regulations, the following shall

occur:

     (1) All powers, duties, and responsibilities of the department of business regulation and the

office of cannabis regulation with respect to the regulation, administration, and enforcement of the

provisions of chapter 28.6 of this title and chapter 26 of title 2 shall be transferred to the commission

or as designated by the commission to the cannabis office.

     (2) All powers, duties, and responsibilities of the department of environmental

management with respect to regulation, administration, and enforcement of chapter 28.6 of this title

shall be transferred to the commission or as designated by the commission to the cannabis office.

     (3) All powers, duties, and responsibilities of the department of health with respect to

regulation, administration, and enforcement of chapter 28.6 of this title shall be transferred to the

commission or as designated by the commission to the cannabis office, except for the following:

     (i) Administration of registry identification cards to qualified patients; and

     (ii) Powers delegated to the department pursuant to this chapter or by rules and regulations

of the commission.

     (4) There shall be established a “cannabis office” with the powers, duties, and

responsibilities authorized pursuant to § 21-28.11-18.1.

     (5) All powers exercised by state agencies, departments, and offices pursuant to the

provisions of subsections (a) and (b) of this section relating to transitional period authority shall

cease.

     (h) Upon final issuance of the commission’s rules and regulations, whenever the term

“office of cannabis regulation” appears in any general law or regulation, the term shall mean the

“cannabis office” as defined in this chapter.

     SECTION 5. Section 28-30-18 of the General Laws in Chapter 28-30 entitled "Workers’

Compensation Court" is hereby amended to read as follows:

     28-30-18. Additional benefits payable to retired judges and their surviving spouses or

domestic partners.

     (a) All judges of the workers’ compensation court, or their surviving spouses or domestic

partners, who retire after January 1, 1970, and who receive a retirement allowance pursuant to the

provisions of this title, shall, on the first day of January next following the third anniversary date

of their retirement, receive a cost-of-living retirement adjustment in addition to his or her retirement

allowance in an amount equal to three percent (3%) of the original retirement allowance. In each

succeeding subsequent year during the month of January the retirement allowance shall be

increased an additional three percent (3%) of the original allowance, compounded annually from

the year the cost-of-living adjustment was first payable to be continued during the lifetime of that

judge or his or her surviving spouse or domestic partner. For the purpose of that computation, credit

shall be given for a full calendar year regardless of the effective date of the retirement allowance.

     (b) Any judge who retired prior to January 31, 1980, shall be deemed for the purpose of

this section to have retired on January 1, 1980.

     (c) For judges not eligible to retire as of September 30, 2009, and not eligible upon passage

of this article, and for their beneficiaries, the cost-of-living adjustment described in subsection (a)

above shall only apply to the first thirty-five thousand dollars ($35,000) of retirement allowance,

indexed annually, and shall commence upon the third (3rd) anniversary of the date of retirement or

when the retiree reaches age sixty-five (65), whichever is later. The thirty-five thousand dollar

($35,000) limit shall increase annually by the percentage increase in the Consumer Price Index for

all Urban Consumers (CPI-U) as published by the United States Department of Labor Statistics

determined as of September 30 of the prior calendar year or three percent (3%), whichever is less.

The first thirty-five thousand dollars ($35,000), as indexed, of retirement allowance shall be

multiplied by the percentage of increase in the Consumer Price Index for all Urban Consumers

(CPI-U) as published by the United States Department of Labor Statistics determined as of

September 30 of the prior calendar year or three percent (3%), whichever is less on the month

following the anniversary date of each succeeding year. For judges eligible to retire as of September

30, 2009, or eligible upon passage of this article, and for their beneficiaries, the provisions of this

subsection (c) shall not apply.

     (d) This subsection (d) shall be effective for the period July 1, 2012, through June 30, 2015.

     (1) Notwithstanding the prior paragraphs of this section, and subject to subsection (d)(2)

below, for all present and former justices, active and retired justices, and beneficiaries receiving

any retirement, disability or death allowance or benefit of any kind, whether provided for or on

behalf of justices engaged on or prior to December 31, 1989, as a noncontributory justice or

engaged after December 31, 1989, as a contributory justice, the annual benefit adjustment provided

in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal

to the percentage determined by subtracting five and one-half percent (5.5%) (the “subtrahend”)

from the five-year average investment return of the retirement system determined as of the last day

of the plan year preceding the calendar year in which the adjustment is granted, said percentage not

to exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the lesser

of the justice’s retirement allowance or the first twenty-five thousand dollars ($25,000) of

retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually

in the same percentage as determined under (d)(1)(A) above. The “five-year average investment

return” shall mean the average of the investment return of the most recent five (5) plan years as

determined by the retirement board. Subject to subsection (d)(2) below, the benefit adjustment

provided by this paragraph shall commence upon the third (3rd) anniversary of the date of

retirement or the date on which the retiree reaches his or her Social Security retirement age,

whichever is later. In the event the retirement board adjusts the actuarially assumed rate of return

for the system, either upward or downward, the subtrahend shall be adjusted either upward or

downward in the same amount.

     (2) Except as provided in subsection (d)(3), the benefit adjustments under this section for

any plan year shall be suspended in their entirely unless the funded ratio of the employees’

retirement system of Rhode Island, the judicial retirement benefits trust, and the state police

retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty

percent (80%) in which event the benefit adjustment will be reinstated for all justices for such plan

year.

     In determining whether a funding level under this subsection (d)(2) has been achieved, the

actuary shall calculate the funding percentage after taking into account the reinstatement of any

current or future benefit adjustment provided under this section.

     (3) Notwithstanding subsection (d)(2), in each fifth plan year commencing after June 30,

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

(5) plan years, a benefit adjustment shall be calculated and made in accordance with subsection

(d)(1) above until the funded ratio of the employees’ retirement system of Rhode Island, the judicial

retirement benefits trust, and the state police retirement benefits trust, calculated by the system’s

actuary on an aggregate basis, exceeds eighty percent (80%).

     (4) Notwithstanding any other provision of this chapter, the provisions of this subsection

(d) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or

prior to June 30, 2012.

     (e) This subsection (e) shall become effective July 1, 2015.

     (1)(i) As soon as administratively reasonable following the enactment into law of this

subsection (e)(1)(i), a one-time benefit adjustment shall be provided to justices and/or beneficiaries

of justices who retired on or before June 30, 2012, in the amount of two percent (2%) of the lesser

of either the justice’s retirement allowance or the first twenty-five thousand dollars ($25,000) of

the justice’s retirement allowance. This one-time benefit adjustment shall be provided without

regard to the retiree’s age or number of years since retirement.

     (ii) Notwithstanding the prior subsections of this section, for all present and former justices,

active and retired justices, and beneficiaries receiving any retirement, disability or death allowance

or benefit of any kind, whether provided for or on behalf of justices engaged on or prior to

December 31, 1989, as a noncontributory justice or engaged after December 31, 1989, as a

contributory justice, the annual benefit adjustment provided in any calendar year under this section

for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall be equal

to (A) multiplied by (B):

     (A) Shall equal the sum of fifty percent (50%) of (I) plus fifty percent (50%) of (II) where:

     (I) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

(the “subtrahend”) from the five-year average investment return of the retirement system

determined as of the last day of the plan year preceding the calendar year in which the adjustment

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

(0%). The “five-year average investment return” shall mean the average of the investment returns

of the most recent five (5) plan years as determined by the retirement board. In the event the

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

     (II) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

Price Index for all Urban Consumers (CPI-U) as published by the United States Department of

Labor Statistics determined as of September 30 of the prior calendar year. In no event shall the sum

of (I) plus (II) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

     (B) Is equal to the lesser of either the justice’s retirement allowance or the first twenty-five

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount to be

indexed annually in the same percentage as determined under subsection (e)(1)(ii)(A) above.

     The benefit adjustments provided by this subsection (e)(1)(ii) shall be provided to all

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

whichever is later.

     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection

(e)(1)(ii) for any plan year shall be suspended in their entirety unless the funded ratio of the

employees’ retirement system of Rhode Island, the judicial retirement benefits trust, and the state

police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds

eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for

such plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of

Rhode Island, the judicial retirement benefits trust, and the state police retirement benefits trust,

calculated by the system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the

benefit adjustment to be reinstated for all members for such plan year shall be replaced with

seventy-five percent (75%).

     In determining whether a funding level under this subsection (e)(2) has been achieved, the

actuary shall calculate the funding percentage after taking into account the reinstatement of any

current or future benefit adjustment provided under this section.

     (3) Notwithstanding subsection (e)(2), in each fourth plan year commencing after June 30,

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection

(e)(1)(ii) above; and (ii) Effective for members and/or beneficiaries of members who retired on or

before June 30, 2015, the dollar amount in subsection (e)(1)(ii)(B) of twenty-five thousand eight

hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six

dollars ($31,026) until the funded ratio of the employees’ retirement system of Rhode Island, the

judicial retirement benefits trust, and the state police retirement benefits trust, calculated by the

system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 2024, the

funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement benefits

trust, and the state police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent

(75%).

     (4) Effective for members and/or beneficiaries of members who have retired on or before

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

days following the enactment of the legislation implementing this provision, and a second one-time

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

payment date and shall not be considered cost of living adjustments under the prior provisions of

this section.

     SECTION 6. Section 28-42-51 of the General Laws in Chapter 28-42 entitled

"Employment Security — General Provisions" is hereby amended to read as follows:

     28-42-51. Additional functions and duties of director of administration.

     In addition to and/or in lieu of the sections enumerated in § 28-42-50, the director of

administration shall perform, at the department of labor and training, in the manner and to the extent

that the director may prescribe, the following functions and duties:

     (1) Establish and maintain a current system of internal financial controls and checks

necessary to insure the proper handling of accounts in connection with the employment security

fund and the employment security administration account created by this chapter, by conducting a

continuous pre-audit or a continuous post-audit or by conducting a combination of both (pre-audit

or post-audit). The cost of these post-audit activities by the office of internal audit and program

integrity in the department of administration shall be reimbursed in full by the department;

     (2) Establish and maintain any methods, procedures, and systems of accounting that may

be deemed necessary; those records and accounts to be considered, for all purposes, the official

records of the state and department;

     (3) Prepare and furnish financial and any other reports that may be required; and

     (4) Perform any other related functions and duties that may be required by chapters 42 —

44 of this title.

     SECTION 7. Section 35-1.1-4 of the General Laws in Chapter 35-1.1 entitled "Office of

Management and Budget" is hereby amended to read as follows:

     35-1.1-4. Offices and functions assigned to the office of management and budget —

Powers and duties.

     (a) The offices assigned to the office of management and budget include the budget office,

the office of regulatory reform, the performance management office, and the office of internal audit

and program integrity.

     (b) The offices assigned to the office of management and budget shall:

     (1) Exercise their respective powers and duties in accordance with their statutory authority

and the general policy established by the governor or by the director acting on behalf of the

governor or in accordance with the powers and authorities conferred upon the director by this

chapter;

     (2) Provide such assistance or resources as may be requested or required by the governor

and/or the director;

     (3) Provide such records and information as may be requested or required by the governor

and/or the director, to the extent allowed under the provisions of any applicable general or public

law, regulation, or agreement relating to the confidentiality, privacy, or disclosure of such records

or information; and

     (c) Except as provided herein, no provision of this chapter or application thereof shall be

construed to limit or otherwise restrict the budget officer from fulfilling any statutory requirement

or complying with any valid rule or regulation.

     (d) The office of management and budget shall monitor the status of federal grants and

identify any impacts of federal funding rescission. In the event of federal funding termination,

agencies must provide the reported reason for termination, the types of activities funded by the

awards, and the number of full-time equivalent positions assigned to the awards to the office.

     (1) The office of management and budget, may coordinate with the governor's office, the

department of administration's division of purchases, the division of human resources, and the

office of accounts and control, to develop options for administrative action or general assembly

consideration that may be needed to address any federal funding changes.

     (2) As soon as practicable after enactment of the federal budget for fiscal year 2026, but

no later than October 31, 2025, the office shall forward a report to the governor, speaker of the

house and president of the senate containing the findings, recommendations, and options to become

compliant with federal changes prior to the governor's budget submission pursuant to § 35-3-7.

     SECTION 8. Section 35-3-24.1 of the General Laws in Chapter 35-3 entitled "State

Budget" is hereby amended to read as follows:

     35-3-24.1. Program performance measurement.

     (a) Beginning with the fiscal year ending June 30, 1997, the governor shall submit, as part

of each budget submitted to the general assembly pursuant to § 35-3-7, performance objectives for

each program in the budget for the ensuing fiscal year, estimated performance data for the fiscal

year in which the budget is submitted, and actual performance data for the preceding two (2)

completed fiscal years. Performance data shall include efforts at achieving equal opportunity hiring

goals as defined in the department’s annual affirmative action plan. The governor shall, in addition,

recommend appropriate standards against which to measure program performance. Performance in

prior years may be used as a standard where appropriate. These performance standards shall be

stated in terms of results obtained.

     (b) The governor may submit, in lieu of any part of the information required to be submitted

pursuant to subsection (a), an explanation of why the information cannot as a practical matter be

submitted.

     (c)(1) The office of management and budget shall be responsible for managing and

collecting program performance measures on behalf of the governor. The office is authorized to

conduct performance reviews and audits of agencies to determine the manner and extent to which

executive branch agencies achieve intended objectives and outcomes.

     (2) In order to collect performance measures from agencies, review performance, and

provide recommendations, the office of budget and management is authorized to coordinate with

the office of internal audit and program integrity regarding the findings and recommendations that

result from audits conducted by the office.

     (3) In order to facilitate the office of management and budget’s performance reviews,

agencies must generate and provide timely access to records, reports, analyses, audits, reviews,

documents, papers, recommendations, contractual deliverables, or other materials available relating

to agency programs and operations.

     (4) In order to ensure alignment of executive branch agency operations with the state’s

priorities, the office of management and budget may produce, with all necessary cooperation from

executive branch agencies, analyses and recommendations to improve program performance,

conduct evidence-based budgeting, and respond to sudden shifts in policy environments.

     (5) In order to gain insight into performance or outcomes and inform policymaking and

program evaluation, the office of management and budget may lead, manage, and/or coordinate

interagency and cross-system collaboration or integration initiatives.

     SECTION 9. Section 35-7-15 of the General Laws in Chapter 35-7 entitled "Post Audit of

Accounts" is hereby amended to read as follows:

     35-7-15. Audit of information security systems.

     (a) The general assembly recognizes that the security of government computer systems is

essential to ensuring the stability and integrity of vital information gathered and stored by the

government for the benefit of the citizenry and the breach of security over computer systems

presents a risk to the health, safety, and welfare of the public. It is the intent of the legislature to

ensure that government computer systems and information residing on these systems are protected

from unauthorized access, compromise, sabotage, hacking, viruses, destruction, illegal use, cyber

attack, or any other act that might jeopardize or harm the computer systems and the information

stored on them.

     (b) In conjunction with the powers and duties outlined in this chapter, the office of internal

audit and program integrity may conduct reviews and assessments of the various government

computer systems and the security systems established to safeguard these computer systems.

Computer systems subject to this section shall include systems that pertain to federal, state, or local

programs, and quasi-governmental bodies, and the computer systems of any entity or program that

is subject to audit by the office of internal audit and program integrity. The office of internal audit’s

audit and program integrity's review may include an assessment of system vulnerability, network

penetration, potential security breaches, and susceptibility to cyber attack and cyber fraud.

     (c) The office of internal audit’s audit and program integrity's findings shall be deemed

public records and available for public inspection; provided, however, in the event the review

indicates a computer system is vulnerable, or security over the system is otherwise deficient,

reasonably segregable portions of the findings shall be subject to public inspection after the

redaction of any information, the disclosure of which, would endanger the security of the system

or reveal the specific nature of the vulnerabilities found. Notwithstanding any other provision of

law to the contrary, the work papers developed in connection with the review of computer systems

and the security over those systems authorized by this section shall not be deemed public records

and are not subject to disclosure.

     (d) In order to maintain the integrity of the computer system, the office of internal audit

and program integrity may procure the services of specialists in information security systems or

other contractors deemed necessary in conducting reviews under this section, and in procuring

those services shall be exempt from the requirements of the state purchasing law or regulation.

     (e) Any outside contractor or vendor hired to provide services in the review of the security

of a computer system shall be bound by the confidentiality provisions of this section.

     SECTION 10. The title of Chapter 35-7.1 of the General Laws entitled "The Office of

Internal Audit" is hereby amended to read as follows:

CHAPTER 35-7.1

The Office of Internal Audit

CHAPTER 35-7.1

THE OFFICE OF INTERNAL AUDIT AND PROGRAM INTEGRITY

     SECTION 11. Sections 35-7.1-1, 35-7.1-2, 35-7.1-3, 35-7.1-4, 35-7.1-6, 35-7.1-8 and 35-

7.1-10 of the General Laws in Chapter 35-7.1 entitled "The Office of Internal Audit" are hereby

amended to read as follows:

     35-7.1-1. Establishment of office of internal audit.

     (a) There is hereby established within the office of management and budget an office of

internal audit and program integrity. Within the office of internal audit and program integrity, there

shall be a chief, appointed by the director of administration, who shall be the administrative head

of the office. The person so selected to be the chief shall be selected without regard to political

affiliation and with a demonstrated ability in the following areas: accounting, auditing, financial

analysis, investigation, management analysis, and public administration. The office of internal

audit and program integrity will report to the office of management and budget director. Any

reference in general law to the “bureau of audits” or "office of internal audit" shall mean the office

of internal audit and program integrity.

     (b) The purpose of the office is to prevent and detect fraud, waste, abuse, and

mismanagement in the expenditure of public funds including:

     (1) All state programs and operations;

     (2) The procurement of any supplies, services, or construction by state agencies, bureaus,

divisions, sections, departments, offices, commissions, institutions, and activities of the state; and

     (3) The procurement or expenditure of public funds by organizations or individuals.

     (b)(c) The chief of the office of internal audit and program integrity shall not hold, or be a

candidate for, any elective or any other appointed public office while a chief. No current chief shall

hold a position in any political party or political committee, or, aside from voting, actively engage

in the political campaign of any candidate for public office that may cause a real or perceived

conflict of interest, or participate as a board member of any entity that receives state or federal

funding.

     (c)(d) No employee of the office of internal audit and program integrity shall hold, or be a

candidate for, any elective public office while an employee, nor shall he/she hold a position in any

political party or political committee or, aside from voting, actively engage in a political campaign

of any candidate for public office that may cause a real or perceived conflict of interest, or

participate as a board member of any not for profit entity that receives state or federal funding.

     (d)(e) Purposes and scope. The office of internal audit and program integrity is authorized

to conduct audits of any state department, state agency, or private entity that is a recipient of state

funding or state grants. In addition, the office of internal audit and program integrity is authorized,

but not limited to, evaluating the efficiency of operations and internal controls, preventing and

detecting fraud, waste, abuse, or mismanagement in the expenditure of public funds, whether

federal, state, or local, that are related to any and all state programs and operations as well as the

procurement of any goods, services, or construction, by public bodies. As deemed necessary or

expedient by the office of internal audit and program integrity, audits may be made relative to the

financial affairs or the economy and efficiency of management of each department, agency or

public body. The office of internal audit and program integrity shall determine which such audits

shall be performed in accordance with a risk-based evaluation.

     (e)(f) “Public body” or “public bodies” under this chapter shall mean state agencies,

bureaus, divisions, departments, offices, commissions, boards, institutions, including the public

institutions of higher education, districts, authorities, quasi-agencies, or political subdivisions

created by the general assembly, or the governor. “Public body” shall also include any city and

town within the state of Rhode Island but municipal audits under this chapter shall only cover the

expenditure of state or federal funds distributed by the state. Audits and investigations of public

bodies may include the expenditures by nongovernmental agencies of federal, state, and local

public funds.

     35-7.1-2. Duties.

     (a) The chief of internal audit and program integrity shall supervise, coordinate, and/or

conduct audits, civil and administrative investigations, and inspections or oversight reviews, when

necessary, relating to expenditure of state or federal funds, or to any and all state programs and

operations, as well as the procurement of any supplies, services, or construction, by public bodies.

In the course of an audit or investigation, the office of internal audit and program integrity shall

review statutes and regulations of the public body and shall determine if such a public body is in

compliance and shall make recommendations concerning the efficiency of operations, and the

effect of such statutes or regulations on internal controls and the prevention and detection of fraud,

waste and abuse. The chief of internal audit and program integrity may recommend policies or

procedures that may strengthen internal controls, or assist in the prevention or detection of fraud,

waste, and abuse or mismanagement.

     (b) The person, or persons, with legal authority for any public body may request the

assistance of the office of internal audit and program integrity. Any such request must include the

scope of services requested and the work to be performed. In such events, the chief, with the

approval of the director of management and budget, may assign personnel to conduct, supervise,

or coordinate such activity as deemed necessary and appropriate to perform his/her duties in a

diligent and prudent manner. The expenses for any such assistance requested by the public body

shall be reimbursed by the public body to the office of internal audit and program integrity. The

chief may recommend policies for the conduct, supervision, or coordination of the relationship,

between state and other state, local governmental agencies as well as federal governmental agencies

and nongovernmental entities with respect to all matters relating to the prevention and detection of

fraud, waste, abuse or mismanagement in or relating to any and all programs and activities of the

state of Rhode Island.

     (c) When it is determined by the office of internal audit that an audit and program integrity

is necessary because there is sufficient evidence to believe that there may have been fiscal

impropriety, wrongdoing, or fiscal mismanagement by any agent, employee, board member, or

commissioner of any public body, the office of internal audit and program integrity may conduct a

forensic examination of such entity. All costs associated with the forensic examination shall be

paid, as deemed appropriate, either by the examined entity or by an appropriation by the general

assembly. Such costs shall include, but not be limited to, the following expenses:

     (1) One hundred percent (100%) of the total salaries and benefits paid to the examining

personnel of the office of internal audit and program integrity engaged in those examinations;

     (2) All costs associated with the procurement of a forensic consultant;

     (3) All costs associated with a consultant that provides expertise pertinent to the examinee’s

operations;

     (4) All reasonable administrative and technology costs related to the forensic examination

process. Technology costs shall include the actual cost of software and hardware utilized in the

examination process and the cost of training examination personnel in the proper use of the software

and hardware.

     (d) The chief of internal audit and program integrity, or their designee, may investigate

reports of any person who, either prior to, or at the time of, or subsequent to the application for

public assistance:

     (1) Willfully makes a false statement or misrepresentation;

     (2) Impersonates someone else;

     (3) Willfully fails to disclose a material fact regarding eligibility or other fraudulent means;

or

     (4) Secures, aids, or abets, or attempts to secure, aid, or abet, others in securing public

assistance (including Supplemental Nutrition Assistance Program (SNAP) or Medicaid) through

fraudulent actions.

     (e) The chief of internal audit and program integrity, or their designee, is authorized to:

     (1) Coordinate, conduct, and/or support investigations aimed at preventing and detecting,

fraud, waste, abuse, and mismanagement in public assistance programs;

     (2) Coordinate and support state and local efforts to investigate and eliminate fraud in

public assistance programs;

     (3) Work to recover both state and federal funds related to fraudulent activities.

     (f) In the course of these investigations, the office of internal audit and program integrity

shall collaborate with local law enforcement agencies, the Rhode Island department of human

services, the Rhode Island state police, the Rhode Island attorney general, or other local, state, and

federal entities as needed to complete the investigations.

     (g) The office shall identify methods to implement innovative technology and data sharing

in order to detect, analyze, and prevent fraud, waste, and abuse.

     35-7.1-3. Investigations or management advisory and consulting services upon

request of governor or general assembly.

     The office of internal audit and program integrity may, upon the written request of the

governor or of the general assembly, conduct audits, provide management advisory and consulting

services, or conduct investigations relative to the financial affairs or the economy and efficiency of

management, or both, of any public bodies as defined in § 35-7.1-1(e). The office of internal audit

and program integrity may, from time to time, make such investigations and additional reports to

the governor, the director of the department of administration, the director of the office of

management and budget, and the general assembly as deemed necessary or advisable.

     35-7.1-4. Management advisory and consulting services provided to public bodies.

     When requested in writing by a public body to the chief, the office of internal audit and

program integrity may provide management advisory or consulting services to the public body.

Any such request must include the scope of services requested and a schedule for the work to be

performed.

     35-7.1-6. Inspection of records and papers — Investigations Inspection of records,

papers, and witness testimony -- Investigations and subpoenas.

     (a) The chief, in carrying out the duties outlined in this chapter, shall have access to all

records, reports, audits, reviews, papers, books, documents, recommendations, correspondence,

including information relative to the purchase of goods or services or anticipated purchase of goods

or services, from any agent, contractor, or vendor by any public body, as defined in § 35-7.1-1(e),

and any other data and material that is maintained by or available to any public body regardless of

the media in which it is maintained which is in any way related to the programs and operations with

respect to public bodies.

     (b) The chief may request information and records, cooperation, and assistance from any

state, or local governmental agency as may be necessary for carrying out his/her duties and

responsibilities. Upon receipt of such request, each person in charge of the public body shall furnish

to the chief, or his/her authorized agent or representative, such information and records, cooperation

and assistance, including information relative to the purchase of goods or services or anticipated

purchase of goods or services from any contractor or vendor by any public body, within ten (10)

business days of receipt of the chief’s request. If the public body is unable to comply with the

request for records and/or information within (10) business days, the public body must notify the

chief, prior to the expiration of the ten (10) business days, in writing as to the reason, or reasons,

why the request cannot be fulfilled within this time and whether additional time is necessary.

     (c) The chief may initiate and conduct audits, investigations, and compliance reviews and

shall prepare detailed findings, conclusions, and recommendations concerning the administration

of programs or operations, and internal controls over processes of public bodies.

     (d) The chief shall have direct and prompt access to any public body, its agents, officers,

and employees when necessary for any purpose pertaining to the performance of his/her duties and

responsibilities under this chapter.

     (e) In furtherance of carrying out any of the duties of this chapter, the chief may request,

with the written approval of the director of the department of administration and through an

administrative subpoena, the attendance and testimony of witnesses and the production of books,

records, and other evidence relevant to an active fraud investigation as described in this chapter.

The subpoena shall specify the time, date, and place where the witness is to respond. Within twenty

(20) days after the service of the subpoena or at any time before the return date specified in the

subpoena, whichever period is shorter, the person served may file in a state superior court and serve

upon the unit and the attorney general a civil petition for an order of the court modifying or setting

aside the subpoena. The petition shall specify each ground upon which the petitioner is seeking

relief. If a person neglects or refuses to comply with any request to provide testimony or produce

books, records, and other evidence relevant to an investigation, the office of internal audit and

program integrity or the attorney general may petition the superior court for an order compelling

the person to answer the request. Books, records, and other evidence obtained through an

administrative subpoena that are not used in a court proceeding shall be destroyed as soon as

practicable.

     35-7.1-8. Reports to the state police.

     In carrying out his/her duties and responsibilities, the chief shall report to the Rhode Island

state police whenever the chief has reasonable grounds to believe there has been a violation of

federal or state criminal law. The chief shall also refer findings to the state ethics commission, or

to any other federal, state, or local agency with an interest in said findings, in the discretion of the

chief. Any referrals made under this section shall not be made public by the office of internal audit

and program integrity.

     35-7.1-10. Annual and interim reports Audit and Annual reports.

     (a) The office of internal audit and program integrity shall prepare an annual report

summarizing the activities of the office of internal audit and program integrity for the prior fiscal

year. The office of internal audit and program integrity may also prepare interim performance

reports. These reports shall be presented to the director of management and budget. The annual

reports shall be posted on the office’s website.

     (b) The annual report shall include, but not be limited to: a general description of significant

problems in the areas of efficiencies, internal controls, fraud, waste, and abuse within programs

and operations within the jurisdiction of the office; a general description of the recommendations

for corrective actions made by the office during the reporting period with respect to significant

deficiencies in the areas of efficiencies, internal controls, fraud, waste, and abuse; the identification

of each significant recommendation described in previous annual reports on which corrective action

has not been completed; a summary of matters referred to prosecuting authorities; a summary of

any matters concerning the recovery of monies as a result of an audit finding or civil suit or a

referral to another agency for the purposes of such suit; a list of all audit reports completed by the

office during the reporting period; and a statement of recommendations of amendment to this

chapter or the rules, regulations, or procedures governing the office of internal audit and program

integrity that would improve the effectiveness or the operations of the office.

     (c) The annual report of the office of internal audit and program integrity shall be made

public on the day of filing.

     (d) At the conclusion of each formal audit, the office of internal audit and program integrity

shall produce an audit report which contains, but is not limited to, the scope of the audit, findings,

and recommendations. Within twenty (20) calendar days following the date of the issuance of the

management-response copy of the draft audit report, the head of the department, agency, public

body, or private entity audited shall respond, in writing, to each recommendation made in the audit

report. This response shall address the department’s, agency’s, or public body’s or private entity’s

plan of corrective action, the party responsible to implement the corrective action plan, and the

anticipated date to complete the implementation of the corrective action; and, if applicable, the

reasons for disagreement with any recommendation proposed in the audit report and justification

of management’s acceptance of risk. The office of internal audit and program integrity may perform

follow-up procedures for the purpose of determining whether the department, agency, public body,

or private entity has implemented, in an efficient and effective manner, its plan of correction action

for the recommendations proposed in the audit report or addressed the risk discussed in the audit

report.

     (e) Copies of each audit report, inclusive of management’s responses noted in subsection

(d) shall be submitted to the chairpersons of the house finance committee, and the senate finance

committee and posted on the office’s website.

     SECTION 12. Chapter 35-7.1 of the General Laws entitled "The Office of Internal Audit"

is hereby amended by adding thereto the following section:

     35-7.1-11. Civil actions.

     The chief of the office of internal audit and program integrity shall have the authority to

initiate civil recovery actions. In any case where the office of internal audit and program integrity

has discovered fraudulent acts and believes that civil recovery proceedings may be appropriate, the

chief may authorize the initiation of appropriate civil proceedings or refer the case to the

appropriate state agency for civil recovery.

     SECTION 13. Section 35-18-4 of the General Laws in Chapter 35-18 entitled "Public

Corporation Debt Management" is hereby amended to read as follows:

     35-18-4. Procedure.

     (a) A financing lease, guarantee, bond, or other obligation shall be deemed to have been

approved by the general assembly when the general assembly passes a concurrent joint resolution

of approval regarding the financing lease, guarantee, bond, or other obligation which the governor

or a public corporation, as the case may be, requests that the financing lease, guarantee, bond, or

other obligation be approved by the general assembly. These requests shall be transmitted to the

speaker of the house and the president of the senate with copies to the chairpersons of the respective

finance committees and fiscal advisors. The request for approval shall include:

     (1) A full description of the essential public facility to which the financing lease, guarantee,

bond, or other obligation is related;

     (2) An explanation as to why the facility is needed and how it will be paid off; and

     (3) The maximum possible obligation of the state or of any public corporation under the

financing lease, guarantee, bond, or other obligation.

     (b) The governor shall provide the general assembly with a timely explanation of any

certification made by him or her pursuant to this chapter in connection with any financing lease,

guarantee, bond, or other obligation. These explanations shall be transmitted to the speaker of the

house and the president of the senate with copies to the chairpersons of the respective finance

committees and fiscal advisors. The explanation shall also include:

     (1) A full description of the essential public facility to which the financing lease, guarantee,

bond, or other obligation is related;

     (2) An explanation as to why the facility is needed and how it will be paid off; and

     (3) The maximum possible obligation of the state or of any public corporation under the

financing lease, guarantee, bond, or other obligation.

     (c) The state shall not enter into any financing lease or guarantee relating to, nor shall any

public corporation issue any bond or other obligation in connection with, any essential public

facility unless the facility conforms to the description included in the request for approval or in the

explanation for certification submitted by the governor in connection with the financing lease,

guarantee, bond, or other obligation; nor shall the state’s obligation in connection with the financing

lease, guarantee, bond, or other obligation exceed the amount set forth in the request for approval

or explanation of certification.

     (d) Immediately following the first sale of each issue of bonds in connection with the

financing of an economic development project, the governor shall provide the general assembly

with copies of any offering statement for those bonds and his or her analysis of the benefits and

risks to the state of the project. These statements and analyses shall be transmitted to the speaker

of the house and the president of the senate, with copies to the chairpersons of the respective finance

committees and fiscal advisors.

     SECTION 14. Chapter 36-4 of the General Laws entitled "Merit System" is hereby

amended by adding thereto the following section:

     36-4-15.1. Specialized information technology positions in state service.

     (a) For purposes of this section, "specialized information technology position" means a

technical or specialized job classification in state service under the supervision of the division of

enterprise technology strategy and services (“ETSS”), within the department of administration.

Such positions may include information technology leadership roles (i.e., chief information officer,

chief technology officer, chief information security officer, etc.) and any other information

technology positions which are supervisory, confidential, or managerial as defined by chapter 7 of

title 28 and the rules and regulations of the Rhode Island state labor relations board. There shall be

no more than fifteen (15) specialized information technology positions employed by the state in

any fiscal year.

     (b) Notwithstanding the provisions of any general or special law or regulation to the

contrary, including the personnel rules adopted pursuant to § 36-4-8, the personnel administrator,

in their sole discretion, may modify, change or amend any official pay plan for employees in the

classified or unclassified service in order to create new job classifications, and/or modify the title,

content or pay grade of an existing job classification, for any new or existing specialized

information technology positions as defined above. All information technology job specifications

and corresponding pay grades, shall be reviewed annually to maintain accuracy and fluency with

emerging technologies, operating systems, and/or applications.

     (c) The personnel administrator is hereby authorized to take whatever administrative action

is necessary to implement the changes to the official pay plans for specialized information

technology positions, as defined in this section, without conducting a public hearing or obtaining

the approval of the Governor prior to the implementation of any such action.

     (d) Within thirty (30) days after any personnel action under this section, the personnel

administrator shall file a written report with the governor, the speaker of the house, the senate

president, and the chairpersons of the house and senate finance committees. This report shall

include:

     (1) The title and paygrade of the position(s);

     (2) The job description of the position(s); and

     (3) The reason why the position(s) is/are necessary. The personnel administrator shall also

post the report on the division of human resources’ website for at least one year.

     (e) The provisions of this section shall not apply to any specialized information technology

position utilized by ETSS that is part of a collective bargaining unit established and certified by the

Rhode Island state labor relations board or which are eligible to be accreted into an existing

collective bargaining unit pursuant to chapter 7 of title 28 and the rules or regulations of the Rhode

Island state labor relations board.

     (f) Except as authorized by chapter 7 of title 28 and the rules or regulations of the Rhode

Island state labor relations board, nothing shall permit the conversion of any/all information

technology positions in the classified, unclassified, or non-classified, covered by a collective

bargaining unit to any/all specialized information technology position utilized by ETSS.

     (g) The authorization granted 36-4-15.1 to the personnel administrator to convert any/all

information technology positions to specialized information technology positions shall sunset on

December 31, 2026.

     SECTION 15. Section 37-2-12 of the General Laws in Chapter 37-2 entitled "State

Purchases" is hereby amended to read as follows:

     37-2-12. Centralization of the procurement authority.

     (a) All rights, powers, duties, and authority relating to the procurement of supplies,

services, and construction, and the management, control, warehousing, sale, and disposal of

supplies, services, and construction now vested in or exercised by any state agency under the

several statutes relating thereto are hereby transferred to the chief purchasing officer as provided

in this chapter, subject to the provisions of § 37-2-54. A public agency does not have to utilize the

centralized purchasing of the state but the public agency, through its existing internal purchasing

function, shall adhere to the general principles, policies and practices set forth in this chapter.

     (b) The chief purchasing officer, as defined in § 37-2-7(3)(i), may establish, charge, and

collect from state contractors, listed on master-price agreements, an statewide contract

administrative fee not to exceed one-third of one percent (0.331%) of the total value of the annual

spend against a contract awarded to a state contractor. All statewide contract administrative fees

collected pursuant to this subsection shall be deposited into a restricted-receipt account within the

general fund designated as the “division of purchases administrative-fee account” and shall be used

for the purposes of implementing, maintaining, or operating technology for the submission and

processing of bids, online vendor registration, bid notification, and other costs related to state

procurement including staffing. On or before January 15, 2019, and annually thereafter on or before

January 15, the chief purchasing officer or designee shall file a report with the governor, the speaker

of the house, and the president of the senate detailing:

     (i) The total amount of funds collected and deposited into the division of purchases

administrative-fee account for the most recently completed fiscal year;

     (ii) The account balance as of the date of the report;

     (iii) An itemization of all expenditures and other uses of said funds from said account for

the most recently completed fiscal year; and

     (iv) An annual evaluation as to the appropriateness of the amount of the contract

administrative fee on master-price agreements.

     (c) Subject to the approval of the director of the department of administration, the state

controller is authorized to offset any currently recorded outstanding liability on the part of

developmental disability organizations (DDOs) to repay previously authorized startup capital

advances against the proceeds from the sale of group homes within a fiscal year prior to any sale

proceeds being deposited into the information technology restricted receipt account established

pursuant to § 42-11-2.5(a).

     SECTION 16. Section 42-7-8 of the General Laws in Chapter 42-7 entitled "Executive

Department" is hereby repealed.

     42-7-8. American Recovery and Reinvestment Act administration expenses.

     (a) There is hereby created restricted receipt accounts, within the office of the governor,

for the office of economic recovery and reinvestment, and within the department of administration

for the office of internal audit and the division of purchasing, to be known as ARRA administrative

expense accounts. Payments from the accounts shall be limited to expenses for administrative

oversight of American Recovery and Reinvestment Act (ARRA) funds. The governor’s office of

economic recovery and reinvestment is authorized by OMB memorandum 09-18 to receive up to

one-half percent (0.5%) of stimulus funding to cover oversight expenses.

     (b) All amounts deposited in the ARRA administration accounts shall be exempt from the

indirect cost recovery provisions of § 35-4-27.

     (c) It is hereby provided, at the end of the American Recovery and Reinvestment Act

oversight period, balances from the ARRA administrative accounts shall revert to general revenues.

     SECTION 17. Section 42-11-2.9 of the General Laws in Chapter 42-11 entitled

"Department of Administration" is hereby amended to read as follows:

     42-11-2.9. Division of capital asset management and maintenance established.

     (a) Establishment. Within the department of administration there shall be established the

division of capital asset management and maintenance (“DCAMM”). Any prior references to the

division of facilities management and/or capital projects, if any, shall now mean DCAMM. Within

the DCAMM there shall be a director of DCAMM who shall be in the classified service and shall

be appointed by the director of administration. The director of DCAMM shall have the following

responsibilities:

     (1) Oversee, coordinate, and manage the operating budget, personnel, and functions of

DCAMM in carrying out the duties described below;

     (2) Review agency capital-budget requests to ensure that the request is consistent with

strategic and master facility plans for the state of Rhode Island;

     (3) Promulgate and adopt regulations necessary to carry out the purposes of this section.

     (b) Purpose. The purpose of DCAMM shall be to manage and maintain state property and

state-owned facilities in a manner that meets the highest standards of health, safety, security,

accessibility, energy efficiency, and comfort for citizens and state employees and ensures

appropriate and timely investments are made for state property and facility maintenance.

     (c) Duties and responsibilities of DCAMM. DCAMM shall have the following duties and

responsibilities:

     (1) To oversee all new construction and rehabilitation projects on state property, not

including property otherwise assigned outside of the executive department by Rhode Island general

laws or under the control and supervision of the judicial branch;

     (2) To assist the department of administration in fulfilling any and all capital-asset and

maintenance-related statutory duties assigned to the department under chapter 8 of title 37 (public

buildings) or any other provision of law, including, but not limited to, the following statutory duties

provided in § 42-11-2:

     (i) To maintain, equip, and keep in repair the statehouse, state office buildings, and other

premises, owned or rented by the state, for the use of any department or agency, excepting those

buildings, the control of which is vested by law in some other agency;

     (ii) To provide for the periodic inspection, appraisal, or inventory of all state buildings and

property, real and personal;

     (iii) To require reports from state agencies on the buildings and property in their custody;

     (iv) To issue regulations to govern the protection and custody of the property of the state;

     (v) To assign office and storage space, and to rent and lease land and buildings, for the use

of the several state departments and agencies in the manner provided by law;

     (vi) To control and supervise the acquisition, operation, maintenance, repair, and

replacement of state-owned motor vehicles by state agencies;

     (3) To generally manage, oversee, protect, and care for the state’s properties and facilities,

not otherwise assigned by Rhode Island general laws, including, but not limited to, the following

duties:

     (i) Space management, procurement, usage, and/or leasing of private or public space;

     (ii) Care, maintenance, cleaning, and contracting for such services as necessary for state

property;

     (iii) Capital equipment replacement;

     (iv) Security of state property and facilities unless otherwise provided by law;

     (v) Ensuring Americans with Disabilities Act (ADA) compliance;

     (vi) Responding to facilities emergencies;

     (vii) Managing traffic flow on state property;

     (viii) Grounds keeping/landscaping/snow-removal services;

     (ix) Maintenance and protection of artwork and historic artifacts;

     (x) On or before August 31, 2022, and each April 1 thereafter to submit to the division of

municipal finance a comprehensive list of all real property owned by the state as of the preceding

December 31 to facilitate the purposes of § 45-13-5.1. The comprehensive list and all other

information provided shall be in a format prescribed by the division of municipal finance. The

division of municipal finance shall subsequently provide to DCAMM a certified list of all

properties eligible under § 45-13-5.1 for identification in the statewide database established under

subsection (d) of this section. Any changes to the comprehensive list of all real property owned by

the state after the list has been supplied to the division of municipal finance shall require notification

to the division of municipal finance within thirty (30) days;

     (4) To manage and oversee state fleet operations.

     (d)(1) All state agencies shall participate in a statewide database and/or information system

for capital assets, that shall be established and maintained by DCAMM.

     (2) Beginning January 1, 2023, all state agencies, departments, boards, commissions,

corporations, authorities, quasi-state agencies, councils, or other political subdivisions that utilize

real property shall provide DCAMM any information, documentary and otherwise, that may be

necessary or desirable to facilitate the purposes of subsection (c)(3)(x) of this section by March 1

annually, or subsection (d)(1) of this section as required by DCAMM. The administrative head of

each submitting entity shall attest to the accuracy and completeness of the information in writing.

     (e) Offices and boards assigned to DCAMM. DCAMM shall oversee the following boards,

offices, and functions:

     (1) Office of planning, design, and construction (PDC);

     (2) Office of facilities management and maintenance (OFMM);

     (3) [Deleted by P.L. 2018, ch. 47, art. 3, § 7.]

     (4) [Deleted by P.L. 2018, ch. 47, art. 3, § 7.]

     (5) Office of risk management (§ 37-11-1 et seq.);

     (6) (5) [Deleted by P.L. 2018, ch. 47, art. 3, § 7.]

     (7) (6) Office of state fleet operations (§ 42-11-2.4(d)).

     (f) The boards, offices, and functions assigned to DCAMM shall:

     (1) Exercise their respective powers and duties in accordance with their statutory authority

and the general policy established by the director of DCAMM or in accordance with the powers

and authorities conferred upon the director of DCAMM by this section;

     (2) Provide such assistance or resources as may be requested or required by the director of

DCAMM or the director of administration;

     (3) Provide such records and information as may be requested or required by the director

of DCAMM or the director of administration; and

     (4) Except as provided herein, no provision of this chapter or application thereof shall be

construed to limit or otherwise restrict the offices stated above from fulfilling any statutory

requirement or complying with any valid rule or regulation.

     SECTION 18. Section 42-13-2 of the General Laws in Chapter 42-13 entitled "Department

of Transportation" is hereby amended to read as follows:

     42-13-2. Organization and functions of the department.

     (a) The department shall be organized in accordance with a project management-based

program and shall utilize an asset management system.

     (1) A project management-based program manages the delivery of the department’s

portfolio of transportation improvement projects from project conception to the project completion.

Project management activities include:

     (i) Managing and reporting on the delivery status of portfolio projects;

     (ii) Developing overall workload and budget for the portfolio;

     (iii) Developing and implementing the tools to estimate the resources necessary to deliver

the projects; and

     (iv) Developing and implementing processes and tools to improve the management of the

projects.

     (2) Asset management is the process used for managing transportation infrastructure by

improving decision making for resource allocation. Asset management activities include a systemic

process based on economic, engineering, and business principles which includes the following

functions:

     (i) Completing a comprehensive inventory of system assets;

     (ii) Monitoring system performance; and

     (iii) Performing analysis utilizing accurate data for managing various assets within the

transportation network.

     (b) The director of transportation shall appoint a chief operating officer to oversee the day-

to-day operations of the department.

     (c) The department shall be organized into such divisions as are described in this section

and such other divisions, subdivisions, and agencies as the director shall find are necessary to carry

out the responsibilities of the department, including: division of finance; division of planning;

division of project management; division of operations and maintenance; office of civil rights;

office of safety; office of external affairs; office of legal; office of personnel; office of information

services.

     (d) The director may assign such other responsibilities as he or she shall find appropriate

and may reassign functions other than as set out in this section if he or she finds the reassignment

necessary to the proper and efficient functioning of the department or of the state’s transportation

system.

     (e) The department shall submit a report annually no later than March 31 to the speaker of

the house, the president of the senate, and the house and senate fiscal advisors concerning the status

of the ten-year (10) transportation plan.

     (f) Any functions, duties, and staff relating to the Rhode Island department of

transportation’s external audit section shall be transferred to the Rhode Island department of

administration’s office of internal audit and program integrity, or its successor, upon passage [Feb.

11, 2016].

     (1) The chief of the office of internal audit and program integrity, or its successor, who

shall be the administrative head of the office of internal audit and program integrity, or its successor,

shall supervise, coordinate, and/or conduct audits, civil and administrative investigations, and

inspections or oversight reviews, when necessary, relating to programs and operations listed in §

42-13-2.

     (2) The office of internal audit’s audit and program integrity’s (or its successor’s)

authorization shall include, but not be limited to, evaluating the efficiency of operations and internal

controls, preventing and detecting fraud, waste, abuse or mismanagement in the expenditure of

public funds, whether state, federal or those revenues collected by the use of tolls and related to

any and all transportation-related programs and operations as well as the procurement of any

supplies, services, or construction, by the department of transportation or related institutions of the

department of transportation. Investigations may include the expenditures by nongovernmental

agencies of federal, state, and local public funds. As deemed necessary or expedient by the office

of internal audit and program integrity, or its successor, audits may be made relative to the financial

affairs or the economy and efficiency of management of the department of transportation or related

institutions.

     SECTION 19. Section 42-28-22 of the General Laws in Chapter 42-28 entitled "State

Police" is hereby amended to read as follows:

     42-28-22. Retirement of members.

     (a) Whenever any member of the state police hired prior to July 1, 2007, has served for

twenty (20) years, the member may retire therefrom or they may be retired by the superintendent

with the approval of the governor, and in either event a sum equal to one-half (½) of the whole

salary for the position from which the member retired determined on the date the member receives

their first retirement payment shall be paid the member during life.

     (b) For purposes of this section, the term “whole salary” means:

     (1) For each member who retired prior to July 1, 1966, “whole salary” means the base

salary for the position from which the member retired as the base salary for that position was

determined on July 31, 1972;

     (2) For each member who retired between July 1, 1966, and June 30, 1973, “whole salary”

means the base salary for the position from which the member retired as the base salary,

implemented by the longevity increment, for that position was determined on July 31, 1972, or on

the date of the member’s retirement, whichever is greater;

     (3) For each member who retired or who retires after July 1, 1973, “whole salary” means

the base salary, implemented by the longevity increment, holiday pay, and clothing allowance, for

the position from which the member retired or retires.

     (c)(1) Any member who retired prior to July 1, 1977, shall receive a benefits payment

adjustment equal to three percent (3%) of the member’s original retirement, as determined in

subsection (b) of this section, in addition to the member’s original retirement allowance. In each

succeeding year thereafter during the month of January, the retirement allowance shall be increased

an additional three percent (3%) of the original retirement allowance, not compounded, to be

continued until January 1, 1991. For the purposes of the computation, credit shall be given for a

full calendar year regardless of the effective date of the service retirement allowance. For purposes

of this subsection, the benefits payment adjustment shall be computed from January 1, 1971, or the

date of retirement, whichever is later in time.

     (2) Any member of the state police who retires pursuant to the provisions of this chapter

on or after January 1, 1977, shall on the first day of January, next following the third anniversary

date of the retirement receive a benefits payment adjustment, in addition to their retirement

allowance, in an amount equal to three percent (3%) of the original retirement allowance. In each

succeeding year thereafter during the month of January, the retirement allowance shall be increased

an additional three percent (3%) of the original retirement allowance, not compounded, to be

continued until January 1, 1991. For the purposes of the computation, credit shall be given for a

full calendar year regardless of the effective date of the service retirement allowance.

     (3) Any retired member of the state police who is receiving a benefit payment adjustment

pursuant to subdivisions (1) and (2) of this section shall beginning January 1, 1991, and ending

June 30, 2012, receive a benefits payment adjustment equal to fifteen hundred dollars ($1,500).

     (d) The benefits payment adjustment as provided in this section shall apply to and be in

addition to the retirement benefits under the provisions of § 42-28-5, and to the injury and death

benefits under the provisions of § 42-28-21.

     (e)(1) Any member who retires after July 1, 1972, and is eligible to retire prior to July 1,

2012, and who has served beyond twenty (20) years shall be allowed an additional amount equal

to three percent (3%) for each completed year served after twenty (20) years, but in no event shall

the original retirement allowance exceed sixty-five percent (65%) of the member’s whole salary as

defined in subsection (b) hereof or sixty-five percent (65%) of the member’s salary as defined in

subsection (b) hereof in the member’s twenty-fifth (25th) year whichever is less.

     (2) Each member who retired prior to July 1, 1975, shall be entitled to all retirement

benefits as set forth above or shall be paid benefits as set forth in subdivision (b)(1) with “whole

salary” meaning the base salary for the position from which the member retired as the base salary

for the position was determined on July 1, 1975, whichever is greater.

     (f)(1) Any member who retires, has served as a member for twenty (20) years or more, and

who served for a period of six (6) months or more of active duty in the armed service of the United

States or in the merchant marine service of the United States as defined in § 2 of chapter 1721 of

the Public Laws, 1946, may purchase credit for such service up to a maximum of two (2) years;

provided that any member who has served at least six (6) months or more in any one year shall be

allowed to purchase one year for such service and any member who has served a fraction of less

than six (6) months in the member’s total service shall be allowed to purchase six (6) months’ credit

for such service.

     (2) The cost to purchase these credits shall be ten percent (10%) of the member’s first year

salary as a state policeman multiplied by the number of years and/or fraction thereof of such armed

service up to a maximum of two (2) years. The purchase price shall be paid into the general fund.

For members hired on or after July 1, 1989, the purchase price shall be paid into a restricted revenue

account entitled “state police retirement benefits” and shall be held in trust.

     (3) There will be no interest charge provided the member makes such purchase during their

twentieth (20th) year or within five (5) years from May 18, 1981, whichever is later, but will be

charged regular rate of interest as defined in § 36-8-1 as amended to date of purchase from the date

of the member’s twentieth (20th) year of state service or five (5) years from May 18, 1981,

whichever is later.

     (4) Any member who is granted a leave of absence without pay for illness, injury, or any

other reason may receive credit therefor by making the full actuarial cost as defined in § 36-8-

1(10); provided the employee returns to state service for at least one year upon completion of the

leave.

     (5) In no event shall the original retirement allowance exceed sixty-five percent (65%) of

the member’s whole salary as defined in subsection (b) hereof or sixty-five percent (65%) of the

member’s salary as defined in subsection (b) hereof in the member’s twenty-fifth (25th) year,

whichever is less.

     (6) Notwithstanding any other provision of law, no more than five (5) years of service

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

member’s service retirement. However, no further purchase will be permitted. Repayment in

accordance with applicable law and regulation of any contribution previously withdrawn from the

system shall not be deemed a purchase of service credit.

     (g) The provisions of this section shall not apply to civilian employees in the Rhode Island

state police; and, further, from and after April 28, 1937, chapters 8 — 10, inclusive, of title 36 shall

not be construed to apply to the members of the Rhode Island state police, except as provided by

§§ 36-8-3, 36-10-1.1, 42-28-22.1, and 42-28-22.2, and § 36-8-1(5) and (8)(a) effective July 1, 2012.

     (h) Any member of the state police other than the superintendent of state police, who is

hired prior to July 1, 2007, and who has served for twenty-five (25) years or who has attained the

age of sixty-two (62) years, whichever shall first occur, shall retire therefrom.

     (i)(1) Any member of the state police, other than the superintendent, who is hired on or

after July 1, 2007, and who has served for twenty-five (25) years, may retire therefrom or the

member may be retired by the superintendent with the approval of the governor, and shall be

entitled to a retirement allowance of fifty percent (50%) of the member’s “whole salary” as defined

in subsection (b) hereof.

     (2) Any member of the state police who is hired on or after July 1, 2007, may serve up to

a maximum of thirty (30) years, and shall be allowed an additional amount equal to three percent

(3.0%) for each completed year served after twenty-five (25) years, but in no event shall the original

retirement allowance exceed sixty-five percent (65%) of his or her “whole salary” as defined in

subsection (b) hereof.

     (j) Effective July 1, 2012, any other provision of this section notwithstanding:

     (1) Any member of the state police, other than the superintendent of state police, who is

not eligible to retire on or prior to June 30, 2012, may retire at any time subsequent to the date the

member’s retirement allowance equals or exceeds fifty percent (50%) of average compensation as

defined in § 36-8-1(5)(a), provided that a member shall retire upon the first to occur of:

     (i) The date the member’s retirement allowance equals sixty-five percent (65%); or

     (ii) The later of the attainment of age sixty-two (62) or completion of five (5) years of

service; provided however, any current member as of June 30, 2012, who has not accrued fifty

percent (50%) upon attaining the age of sixty-two (62) shall retire upon accruing fifty percent

(50%); and upon retirement a member shall receive a retirement allowance which shall equal:

     (A) For members hired prior to July 1, 2007, the sum of (i), (ii), and (iii) where:

     (i) is calculated as the member’s years of total service before July 1, 2012, multiplied by

two and one-half percent (2.5%) of average compensation for a member’s first twenty (20) total

years,

     (ii) is calculated as the member’s years of total service before July 1, 2012, in excess of

twenty (20) years not to exceed twenty-five (25) years multiplied by three percent (3%) of average

compensation, and

     (iii) is the member’s years of total service on or after July 1, 2012, multiplied by two

percent (2%) of average compensation as defined in § 36-8-1(5)(a)(b).

     (B) For members hired on or after July 1, 2007, the member’s retirement allowance shall

be calculated as the member’s years of total contributory service multiplied by two percent (2%)

of average compensation.

     (C) Any member of the state police who is eligible to retire on or prior to June 30, 2012,

shall retire with a retirement allowance calculated in accordance with paragraph (a) and (e) above

except that whole salary shall be defined as final compensation where compensation for purposes

of this section and § 42-28-22.1 includes base salary, longevity, and holiday pay.

     (D) Notwithstanding the preceding provisions, in no event shall a member’s final

compensation be lower than their final compensation determined as of June 30, 2012.

     (2) In no event shall a member’s original retirement allowance under any provisions of this

section exceed sixty-five percent (65%) of their average compensation.

     (3) For each member who retires on or after July 1, 2012, except as provided in paragraph

(j)(1)(C) above, compensation and average compensation shall be defined in accordance with § 36-

8-1(5)(a) and (8), provided that for a member whose regular work period exceeds one hundred

forty-seven (147) hours over a twenty-four-day (24) period at any time during the four-year (4)

period immediately prior to the member’s retirement, that member shall have up to four hundred

(400) hours of their pay for regularly scheduled work earned during this period shall be included

as “compensation” and/or “average compensation” for purposes of this section and § 42-28-22.1.

     (4) This subsection (4) shall be effective for the period July 1, 2012, through June 30, 2015.

     (i) Notwithstanding the prior paragraphs of this section, and subject to paragraph (4)(ii)

below, for all present and former members, active and retired members, and beneficiaries receiving

any retirement, disability or death allowance or benefit of any kind, whether for or on behalf of a

non-contributory member or contributory member, the annual benefit adjustment provided in any

calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal to the

percentage determined by subtracting five and one-half percent (5.5%) (the “subtrahend”) from the

Five-Year Average Investment Return of the retirement system determined as of the last day of the