=======

art.003/4/003/3/003/2/003/1

=======

     ARTICLE 3 AS AMENDED

RELATING TO GOVERNMENT REFORM AND REORGANIZATION

     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 9.4

OFFICE OF INSPECTOR GENERAL

     42-9.4-1. Purpose and establishment of office of the inspector general.

     (a)(1) There is hereby established an office of the inspector general (the "office") that shall

be an independent and nonpartisan administrative agency whose purpose shall be to investigate the

management and operation of agencies as it relates to the prevention and detection of fraud, waste,

abuse and mismanagement in the expenditure of public funds that harms the public interest.

     (2) The jurisdiction, authorization, powers, and duties granted to the office pursuant to this

chapter shall be in addition to, and not in contravention of, any and all jurisdiction, authorization,

powers, and duties of the office of attorney general, any other state or local law enforcement

agency, or the auditor general.

     (3) The general assembly shall make adequate appropriations to the office of inspector

general to enable effective operation and independence.

     (b) The inspector general shall be appointed by the governor with the advice and consent

of the senate in accordance with § 42-9.4-4 and shall direct and supervise the work of the office as

follows:

     (1) The inspector general shall establish the organizational structure appropriate to carry

out the functions and duties of the office and shall have the power to employ, promote, and remove

such deputies, assistants, employees, and personnel as deemed necessary for the efficient and

effective administration of the office.

     (2) The inspector general may hire the necessary support staff, and designate a deputy

inspector general and other qualified staff with education or experience in relevant areas, such as

investigations, evidence collection, audits, compliance with laws and other requirements, or other

forms of oversight, enforcement, or government evaluation. Provided, further, the inspector general

may contract for services of technical experts, including legal counsel.

     (3) Within three (3) years after being hired, investigative staff employed by the office shall

become certified by the Association of Inspectors General in at least one of the following fields:

     (i) Investigation;

     (ii) Auditing; or

     (iii) Evaluation.

     (c) Nothing in this chapter shall diminish, supersede, limit, or interfere with the statutory

responsibilities and authority of the auditor general as provided in § 22-13-4.

     (d) The director of administration is hereby authorized and directed to provide suitable

quarters for the office of inspector general.

     42-9.4-2. Definitions.

     As used in this chapter:

     (1) "Agency" means a separate agency or unit of state government created or established

by law and includes, but is not limited to, the following entities and officers of any authority, board,

branch, bureau, commission, committee, council, department, division, institution, office, public

corporation, or quasi-agency as the case may be.

     Agency shall not mean and shall not include: (i) The legislative branch of state government

and any agency, committee, commission, or unit therein or thereof; or (ii) The judicial branch of

state government and any agency, committee, commission, or unit therein or thereof.

     (2) "Contractor" means any person, corporation, partnership, business, committee, or other

organization entity or group of individuals, performing any tasks or duties as defined under a

written or oral contract with an agency.

     (3) "Employee" means any person employed by an agency, including agency heads,

directors and commissioners.

     (4) "Officer" means any person appointed to any agency.

     (5) "Official" means any person elected to office within the executive branch of

government.

     (6) "Public funds" means state, federal or local funds, either appropriated, non-appropriated

or given under right of grant.

     42-9.4-3. Qualifications.

     To be eligible to be appointed as an inspector general, a candidate shall have, at a minimum,

the following qualifications:

     (1) Hold a bachelor's degree or higher in criminal justice, public administration, law

enforcement, accounting, or a related area;

     (2) Have at least ten (10) years of professional experience in auditing, investigations, law

enforcement, accounting, or a related area;

     (3) Hold a professional certificate from the Association of Inspectors General, including

Certified Inspector General or Certified Inspector General Investigator; and

     (4) Demonstrate a commitment to safeguarding the mission of public service. Candidates

must provide prior professional opinions, positions, or actions that may influence the candidate's

approach to the role, which will be subject to public disclosure to the extent permitted under law.

     42-9.4-4. Inspector general -- Appointment -- Removal.

     (a) There is hereby established a five (5) member independent advisory commission

comprised of the following individuals:

     (1) Attorney general;

     (2) General treasurer;

     (3) Secretary of state;

     (4) Executive director of the ethics commission; and

     (5) President of the Association of Inspectors General, or designee.

     (b) The commission shall immediately be charged with creating a process for the

application, interview and selection of suitable and qualified candidates as follows:

     (1) The commission shall consider applicants for the position of inspector general, in

accordance with this chapter and without regard to political affiliation, on the basis of integrity,

capability for strong leadership and demonstrated ability in accounting, auditing, financial analysis,

law, public administration, investigations, criminal justice administration, or closely related fields.

     (2) Within ninety (90) days of the effective date of this chapter, the commission shall

submit to the governor a list of three (3) qualified candidates for inspector general that the governor

shall give due consideration in appointing one individual from the list. Within ninety (90) days of

receiving the list, the governor shall submit to the senate for advice and consent one individual for

appointment as inspector general.

     (3) Once confirmed by the senate, the inspector general shall serve for a term of five (5)

years and is eligible for reappointment for a second five (5) year term, in accordance with this

section.

     (c) No inspector general may serve longer than two (2) five (5) year terms.

     (d) The inspector general and employees shall be subject to chapter 14 of title 36 ("code of

ethics").

     (e) Upon a mid-term vacancy of the inspector general, an interim inspector general shall

be appointed in accordance with this section.

     (f) No inspector general, officer, or employee of the office of inspector general shall hold

or be a candidate for any other elective or appointed public office while serving as inspector

general.

     (g) No inspector general, officer, or employee of the office of inspector general shall hold

a position in any political party, committee, or subcommittee, or participate in any political

campaign of any candidate for public office while serving as inspector general.

     (h) Eligibility restriction. The following individuals shall not be nominated for inspector

general until one year after the last day of the individual's holding of any of the following

disqualifying positions:

     (1) A member of the general assembly;

     (2) Any other public office holder; or

     (3) A cabinet secretary, a department director in the executive branch, or an individual of

equivalent standing within the executive branch.

     (i) Removal. The person so appointed as inspector general may be removed from office for

cause by the governor prior to the expiration of his or her term. Cause may include substantial

neglect of duty, gross misconduct or conviction of a crime, whether or not it is related to official

work duties.

     42-9.4-5. Jurisdiction -- Powers and duties.

     (a) The inspector general shall have jurisdiction over any official, officer, employee, or

agency in the executive branch of state government.

     (b) The inspector general shall have the following duties:

     (1) Investigate the management and operation of agencies to determine if there has been

evidence of fraud, waste, abuse, mismanagement, or any other abuse of governmental resources

that harms the public interest, whether through acts or omissions;

     (2) Investigate retaliation claims regarding whistleblowers;

     (3) Report suspected acts of fraud, waste, abuse or mismanagement against or within an

agency to the governor and, as appropriate to other state entities with jurisdiction over the matter;

     (4) Conduct special investigations and management reviews of agencies at the request of

the governor;

     (5) Establish procedures to receive, investigate, and resolve complaints, including

recommending whether disciplinary action or further investigation by appropriate local, state, or

federal agencies is warranted and taking further action as appropriate;

     (6) Instruct and educate agencies on the detection and prevention of fraud, waste, abuse,

and mismanagement; conduct evaluations of relevant agency policies and procedures implicated

by any investigation and create a remedial action plan to prevent recurrences of fraud, waste, abuse,

or mismanagement that harm the public interest; and close an investigation when the inspector

general concludes there is insufficient evidence that a violation has occurred. Closure of any

investigation by the inspector general shall not bar the reopening of the investigation should

circumstances warrant;

     (7) Act as a liaison to agencies to promote accountability, integrity, and efficiency in state

government;

     (8) Maintain a statewide-toll-free telephone number, website, email address, and physical

mailing address for the receipt of complaints and inquiries;

     (9) Work collaboratively, including through any memoranda of understanding, for the

purposes of efficiency, coordination, and avoidance of duplicative work with the attorney general,

local, state or federal law enforcement, the ethics commission, and the auditor general;

     (10) Enter into contracts for audits or specialists needed to perform the duties outlined

herein. Provided, further, the inspector general shall coordinate with the auditor general to ensure

efficient utilization of available audit resources; and

     (11) When formally requested by a municipal government through a city or town council

resolution, the inspector general may accept a request from a municipality to investigate concerns

regarding fraud, waste, abuse, or mismanagement of state or municipal government funds. All the

powers, duties and procedures of the inspector general set forth in this chapter for investigation of

agencies shall apply to any investigation related to a municipality.

     42-9.4-6. Investigative procedures.

     (a) The inspector general shall accept and may investigate complaints or information from

any individual or entity concerning the possible existence of any activity constituting alleged fraud,

waste, abuse, and mismanagement relating to any agency as defined herein.

     (b) The inspector general shall not, after receipt of a complaint or information from an

employee, contractor, or private citizen who requests confidentiality, disclose the identity of that

individual, without the written consent of the individual, unless the inspector general determines

such disclosure is necessary and unavoidable during the course of an investigation. In such event,

the individual filing the complaint shall be notified immediately, if possible, of such disclosure

which shall be in accordance with applicable law.

     (c) The inspector general shall not investigate complaints from employees that relate to

their employment relationship with the agency, unless the complaint is directly related to fraud,

waste, abuse, or mismanagement or abuse of governmental resources that harms the public interest.

     (d) The inspector general may decline to investigate a complaint as provided by the rules

and regulations adopted pursuant to this chapter. If the inspector general declines to investigate a

complaint, he or she shall notify the complainant of the decision not to investigate and the basis for

that determination.

     (e) The inspector general may refer a complaint under this chapter to the attorney general;

local, state or federal law enforcement, the auditor general, or the ethics commission.

     (f) The inspector general may not levy a fee for the submission or investigation of a

complaint.

     (g) The inspector general shall remain neutral and impartial and may not act as an advocate

for the complainant or for the agency.

     (h) The inspector general shall adhere to professional standards for initiating and

conducting investigations, such as the Principles and Standards for Offices of Inspector General

promulgated by the Association of Inspectors General. Additionally, the office of inspector general

shall be a member of the Association of Inspectors General and participate in the peer review

program of the association as part of the established quality control procedures adopted by the

office.

     42-9.4-7. Conclusion of investigation -- Report -- Decision.

     (a) At the conclusion of the investigation of each complaint:

     (1) Report. Upon the conclusion of an investigation that results in a finding of fraud, waste,

abuse or mismanagement but prior to issuing a decision, the inspector general shall issue a report

or letter to the agency subject to the investigation, the office of the governor, the attorney general,

the speaker of the house of representatives, the president of the senate and shall release to the public

any such report unless the public release of such report would compromise a pending criminal

investigation noted in the report and known to the inspector general or otherwise be exempt from

disclosure pursuant to chapter 2 of title 38 ("access to public records");

     (i) The director of each agency may, within sixty (60) days of receipt of said report,

comment upon any references to the agency contained within the report. The comment, if any, shall

be forwarded to the governor, the attorney general, the speaker of the house of representatives, the

president of the senate, and the office of inspector general.

     (2) Decision. The inspector general shall issue a decision on the merits of the complaint,

including his or her recommendations, and the decision shall be posted on the inspector general's

website;

     (i) Where the investigation finds that there has been or continues to be fraud, waste, abuse,

mismanagement, or other abuse of governmental resources that harms the public interest or that

there is evidence of a crime, the inspector general shall communicate its findings and decision to

the attorney general, local, state or federal law enforcement, or the auditor general;

     (ii) If the complaint is about an employee of an agency or a contractor and the investigation

found no evidence of wrongdoing, the inspector general shall ensure that the public decision does

not contain the name of the individual investigated without the written permission of that

individual.

     (b) Before announcing a decision, the inspector general shall do all of the following:

     (1) Consult with the agency and as appropriate, the employee or contractor regarding the

decision;

     (2) Provide an opportunity for each person who is the subject of the decision to respond in

writing to the decision within five (5) business days and any response shall be made available to

the public when the decision is released. Provided, however, this does not allow an individual

consulted by the inspector general before an announcement to hinder, prevent, or delay the

inspector general's announcement of a decision.

     (c) In the decision, the inspector general may recommend that the agency:

     (1) Consider the matter further;

     (2) Modify or cancel an action or practice;

     (3) Alter a rule, practice, or decision;

     (4) Explain in detail the administrative action in question; or

     (5) Rectify an omission.

     (6) The inspector general shall communicate his or her decision to the complainant, the

agency investigated, and as appropriate, the employee investigated, and the decision shall be posted

on the inspector general's website.

     (d) Where the inspector general has discovered fraudulent acts and believes that civil

recovery proceedings may be appropriate, the matter shall be referred to the attorney general.

     (1) The attorney general may, upon such referral, institute whatever proceedings it deems

appropriate, including referring the matter to another state or local agency, authorizing the initiation

of appropriate civil proceedings by the inspector general, retaining the matter for further

investigation, or remanding the matter back to the inspector general for further investigation.

     (2) If the attorney general declines to take action pursuant to this section, the inspector

general shall have the authority to institute a civil recovery action upon the authorization of the

attorney general.

     (e) The public release of the inspector general's decision shall not contain information that

is found to be confidential and/or exempt from disclosure pursuant to this chapter or other

applicable laws, including chapter 2 of title 38 ("access to public records").

     (f) Investigator records, including, but not limited to, communications that include the

investigative record may be deemed confidential and exempt from disclosure pursuant to chapter 2

of title 38 ("access to public records") or other applicable laws.

     42-9.4-8. Access to agencies and records.

     (a) Agencies shall cooperate with any investigation conducted pursuant to this chapter, and

the inspector general shall have reasonable access to an agency's records as necessary to conduct a

full investigation of a complaint including, but not limited to, the following:

     (1) Access to records in the possession of a grantee or contractor;

     (2) The opportunity to interview an employee or any other individual who may have

knowledge relating to the complaint under investigation.

     (b) The inspector general may inspect and copy all relevant information, records, or

documents that the inspector general considers reasonably necessary in an investigation of a

complaint under this chapter.

     (c) The inspector general is authorized to interview any official, officer, or employee

serving in the agency and may inspect and copy any book, record, paper, or electronic file in the

possession of the agency, taking care to preserve the confidentiality of the information.

     (d) Any knowing failure of any official, officer, or employee to comply with an

investigation made pursuant to this chapter or the knowing provision of false information during

an investigation or the destruction or attempted destruction of any relevant materials may be subject

to criminal, civil, and/or administrative penalties.

     42-9.4-9. Oaths -- Subpoenas.

     (a) In performing an investigation authorized by this chapter, the inspector general shall

have the authority to administer or take from any person an oath, examine witnesses under oath,

and issue any subpoenas necessary to compel the attendance of witnesses and the production of all

books, records, papers, electronic and tangible items that constitute or contain evidence which the

inspector general finds reasonably relevant or material to the investigation, affirmation, or affidavit,

whenever necessary to perform his or her duties.

     (b) Service of any subpoena issued under this chapter shall be made by any designated

person. Service upon a natural person may be made by personal delivery of the subpoena to that

person. Subpoenas may also be served upon a natural person by registered or certified mail and the

return receipt shall constitute prima facie proof of service. Service to a natural person may also be

made by serving as the person's counsel of record. Service may be made upon a domestic or foreign

corporation by delivering the subpoena to an officer, to a managing or general agent, or to any other

agent authorized by appointment or by law to receive service of process. A subpoena requiring the

attendance of a witness may be served at any place within the state and furthermore, process may

be served at any place within the state.

     (c) In the case of a refusal to obey any issued subpoena, the inspector general may request

that the attorney general petition the superior court to compel compliance with the subpoena. The

attorney general may petition the court upon such request by the inspector general.

     (d) Upon filing of the petition, the court may enter an order directing the individual to

appear before the court at a specified time and place and then and there show cause why they had

not attended, answered questions under penalty of perjury, or produced the requested items as

required by the subpoena. If it appears to the court that the subpoena was properly issued by the

inspector general, the court may enter an order that the person named in the subpoena appear at the

time and place fixed in the order and answer questions under penalty of perjury or produce the

requested items as required. Upon failure to obey the court order, the person may be subject to

contempt of court.

     (e) Nothing in this section shall limit or alter a person's existing rights or protections under

state or federal law.

     42-9.4-10. Rules and regulations.

     The office shall promulgate rules and regulations which shall govern its proceedings and

operation pursuant to chapter 35 of title 42 ("administrative procedures").

     42-9.4-11. Reporting requirements.

     (a) The inspector general shall, no later than April 1 and every year thereafter, file a written

report summarizing the activities of the office for the prior calendar year. The office may also

prepare and file interim reports. These reports shall be forwarded to the governor, lieutenant

governor, attorney general, secretary of state, general treasurer, the speaker of the house, the

president of the senate and the auditor general, and shall be made available to the public.

     (b) The report shall include, but not be limited to:

     (1) A description of investigations undertaken related to fraud, waste, abuse, or

mismanagement within agencies;

     (2) A description of any recommendations for corrective action made by the office during

the reporting period with respect to significant deficiencies in the areas of fraud, waste, abuse or

mismanagement;

     (3) The identification of each significant recommendation described in previous annual

reports on which corrective action has not been completed;

     (4) A summary of matters referred to prosecuting authorities and the status of said referrals;

     (5) A summary of matters concerning recovery of monies as a result of civil action

undertaken by the office or after a referral to the attorney general; and

     (6) A list of all audit reports completed by the office during the reporting period.

     (c) The report of the inspector general shall be made public on the day of the filing. Where

no official disposition has been made by the office, the attorney general, or other law enforcement

agencies, the report shall not list the names of individuals or corporations, nor describe them with

sufficient particularity as to readily identify them to the general public.

     42-9.4-12. Budget submission.

     The inspector general shall comply with all budget submission requirements set forth in

chapter 3 of title 35 ("state budget").

     42-9.4-13. Retaliation -- Whistleblower protections.

     (a) No agency, officer, or official shall take action against an official, officer, or employee

for disclosing or threatening to disclose the existence of any activity constituting waste, fraud,

abuse, or mismanagement to the inspector general, unless the disclosure or threatened disclosure

was made with knowledge that the disclosure was false or was made with willful disregard for its

truth or falsity.

     (b) Any report disclosed by the office may differ from the complete written report in that

the inspector general shall have the discretion to redact or otherwise protect the names of

complainants and witnesses, or other information that, if not redacted, might compromise the

identity of a complainant or witness.

     (c) The provisions chapter 50 of title 28 ("the Rhode Island whistleblowers' protection act")

shall be afforded to persons including, but not limited to, employees, reporting information under

this chapter.

     42-9.4-14. Severability.

     If any provision of this chapter or the application thereof to any individual or circumstance

is held invalid, such invalidity shall not affect the other provisions or applications of this chapter,

which can be given effect without the invalid provision or application, and to this end the provisions

of this chapter are declared to be severable.

     SECTION 2. Section 39-18-2 of the General Laws in Chapter 39-18 entitled "Rhode Island

Public Transit Authority" is hereby amended to read as follows:

     39-18-2. Authority created — Composition — Terms — Oath — Officers —

Quorum— Compensation — Conflicts of interest.

     (a) There is hereby created a body corporate and politic to be known as the “Rhode Island

public transit authority” (hereinafter “RIPTA”).

     (b) The authority shall consist of nine (9) members, one of whom shall be the director of

the department of transportation, or the director’s designee, who shall serve as an ex officio

member, and eight (8) of whom shall be appointed by the governor with the advice and consent of

the senate, with at least one of the eight (8) being a regular user of fixed-route RIPTA transportation

and at least one of the eight (8) being a person with a disability. The governor shall achieve a

diverse membership in the board and shall give due consideration to recommendations for

nominations from the RIPTA Riders Alliance, the National Federation of the Blind of Rhode Island,

the Gray Panthers of Rhode Island, the Sierra Club of Rhode Island, the Rhode Island AFL-CIO,

the RIPTA Transportation Advisory Committee, the Rhode Island business community, the

Amalgamated Transit Union, and the Rhode Island League of Cities and Towns. No one shall be

eligible for appointment unless he or she is a resident of this state.

     (c) Those members of the authority as of the effective date of this act [June 16, 2006] who

were appointed to the authority by members of the board of the general assembly shall cease to be

members of the authority on the effective date of this act [June 16, 2006], and the governor shall

thereupon nominate two (2) members, each of whom shall serve the balance of the unexpired term

of their predecessor. Those members of the authority as of the effective date of this act [June 16,

2006] who were appointed to the authority by the governor shall continue to serve the balance of

their current terms. Thereafter, during the month of January in each year, the governor shall appoint

members to succeed the departing members. The newly appointed members shall serve for a term

of three (3) years, commencing on the day they are qualified. In the event of a vacancy occurring

in the membership, the governor, with the advice and consent of the senate, shall appoint a member

for the unexpired term. Any member of the authority shall be eligible for reappointment.

     (d) Each member of the authority, before entering upon the member’s duties, shall take an

oath to administer the duties of the member’s office faithfully and impartially, and the oath shall

be filed in the office of the secretary of state.

     (e) The director of the department of transportation shall serve as chairperson. The

authority shall elect one of its members to serve as chairperson, who shall not be the director of the

department of transportation. The authority shall also elect a secretary and such other officers as it

deems necessary.

     (f) Five (5) members of the authority shall constitute a quorum. The affirmative vote of a

majority of the members present and voting shall be necessary for any action taken by the authority.

No vacancy in the membership of the authority shall impair the right of a quorum to exercise all

the rights and perform all the duties of the authority.

     (g) The members of the authority shall receive no compensation, but shall be reimbursed

for their actual expenses necessarily incurred in the performance of their duties.

     (h) No member of the authority shall be in the employ of, or own any stock in, or be in any

way directly or indirectly pecuniarily interested in any railroad corporation, bus, or street railway

company; nor shall any member of the authority personally, or through a partner or agent, render

any professional service or make or perform any business contract with or for any company; nor

shall any member of the authority, directly or indirectly, receive a commission, bonus, discount,

present, or reward from any company.

     (i) Members of the authority shall be removable by the governor pursuant to the provisions

of § 36-1-7 and for cause only, and removal solely for partisan or personal reasons unrelated to

capacity or fitness for the office shall be unlawful.

     (j) The authority shall conduct a training course for newly appointed and qualified members

within six (6) months of their qualification or designation. The course shall be developed by the

general manager of the authority, be approved by the authority, and be conducted by the general

manager of the authority. The authority may approve the use of any authority and/or staff members

and/or individuals to assist with training. The training course shall include instruction in the

following areas: the provisions of chapter 46 of title 42, chapter 14 of title 36, and chapter 2 of title

38; and the authority’s rules and regulations. The director of the department of administration shall

be responsible for the enforcement of the provisions of this subsection.

     SECTION 3. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 13.2

RHODE ISLAND DEPARTMENT OF TRANSPORTATION EFFICIENCY AND

PERFORMANCE AUDIT ACT

     42-13.2-1. Definitions.

     As used in this chapter:

     (1) “Department” means the Rhode Island department of transportation.

     (2) “DOA” means the Rhode Island department of administration.

     (3) “Audit” means an independent efficiency and performance audit conducted in

accordance with this chapter.

     (4) “Peer state” means a state transportation agency selected for benchmarking based on

geography, climate, system size, and procurement framework.

     42-13.2-2. Requirement to commission efficiency and performance audit.

     (a) The Office of Internal Audit and Program Integrity within DOA shall commission an

efficiency and performance audit of the department.

     (b) The audit shall be completed on or before March 15, 2027.

     42-13.2-3. Scope of audit.

     (a) The audit shall include, but not be limited to, the following areas:

     (1) Asset management, including pavement, bridges, culverts, intelligent transportation

systems assets, backlog replacement needs, and lifecycle cost analysis; and

     (2) Maintenance efficiency, including cost per lane-mile, snow and ice operations

productivity, maintenance productivity, and equipment utilization;

     (b) The audit pursuant to this section shall be separate and independent of any audit

conducted by the auditor general pursuant to chapter 13 of title 22 (“auditor general”).

     42-13.2-4. Maintenance and operations efficiency.

     The audit conducted pursuant to § 42-13.2-2 shall assess maintenance and operations

efficiency, including:

     (1) Cost per lane-mile by district;

     (2) Salt and chemical usage normalized by lane-mile and weather severity;

     (3) Vehicle and equipment availability and downtime;

     (4) Maintenance backlog tracking; and

     (5) Overtime utilization and patterns.

     42-13.2-5. Reporting and public availability.

     (a) Upon completion, the audit shall be submitted to:

     (1) The governor;

     (2) The president of the senate;

     (3) The speaker of the house of representatives; and

     (4) The chairs of the house and senate finance committees.

     (b) The final audit report shall be made publicly available on the DOA’s website.

     42-13.2-6. Cooperation and access to records.

     The department shall cooperate fully with the audit and provide access to all records, data,

contracts, and personnel reasonably necessary to complete the audit.

     SECTION 4. Chapter 42-14 of the General Laws entitled "Department of Business

Regulation" is hereby amended by adding thereto the following section:

     42-14-20. Electronic permitting report.

     (a) The department shall include a report that reviews, analyzes, and assesses functions

related to electronic permitting and the electronic permitting platform identified in § 23-27.3-108.2

with its annual budget submission to the office of management and budget for the fiscal year ending

June 30, 2027. The report shall additionally contain suggested statutory revisions, including, but

not limited, to clarifying permitting statutes, aligning fees with programmatic costs, and ensuring

efficient administration.

     SECTION 5. Section 42-17.1-2 of the General Laws in Chapter 42-17.1 entitled

"Department of Environmental Management" is hereby amended to read as follows:

     42-17.1-2. Powers and duties.

     The director of environmental management shall have the following powers and duties:

     (1) To supervise and control the protection, development, planning, and utilization of the

natural resources of the state, such resources, including, but not limited to: water, plants, trees, soil,

clay, sand, gravel, rocks and other minerals, air, mammals, birds, reptiles, amphibians, fish,

shellfish, and other forms of aquatic, insect, and animal life;

     (2) To exercise all functions, powers, and duties heretofore vested in the department of

agriculture and conservation, and in each of the divisions of the department, such as the promotion

of agriculture and animal husbandry in their several branches, including the inspection and

suppression of contagious diseases among animals; the regulation of the marketing of farm

products; the inspection of orchards and nurseries; the protection of trees and shrubs from injurious

insects and diseases; protection from forest fires; the inspection of apiaries and the suppression of

contagious diseases among bees; the prevention of the sale of adulterated or misbranded

agricultural seeds; promotion and encouragement of the work of farm bureaus, in cooperation with

the University of Rhode Island, farmers’ institutes, and the various organizations established for

the purpose of developing an interest in agriculture; together with such other agencies and activities

as the governor and the general assembly may, from time to time, place under the control of the

department; and as heretofore vested by such of the following chapters and sections of the general

laws as are presently applicable to the department of environmental management and that were

previously applicable to the department of natural resources and the department of agriculture and

conservation or to any of its divisions: chapters 1 through 22, inclusive, as amended, in title 2

entitled “Agriculture and Forestry”; chapters 1 through 17, inclusive, as amended, in title 4 entitled

“Animals and Animal Husbandry”; chapters 1 through 19, inclusive, as amended, in title 20 entitled

“Fish and Wildlife”; chapters 1 through 32, inclusive, as amended, in title 21 entitled “Food and

Drugs”; chapter 7 of title 23, as amended, entitled “Mosquito Abatement”; and by any other general

or public law relating to the department of agriculture and conservation or to any of its divisions or

bureaus;

     (3) To exercise all the functions, powers, and duties heretofore vested in the division of

parks and recreation of the department of public works by chapters 1, 2, and 5 in title 32 entitled

“Parks and Recreational Areas”; by chapter 22.5 of title 23, as amended, entitled “Drowning

Prevention and Lifesaving”; and by any other general or public law relating to the division of parks

and recreation;

     (4) To exercise all the functions, powers, and duties heretofore vested in the division of

harbors and rivers of the department of public works, or in the department itself by such as were

previously applicable to the division or the department, of chapters 1 through 22 and sections

thereof, as amended, in title 46 entitled “Waters and Navigation”; and by any other general or public

law relating to the division of harbors and rivers;

     (5) To exercise all the functions, powers, and duties heretofore vested in the department of

health by chapters 25, 18.9, and 19.5 of title 23, as amended, entitled “Health and Safety”; and by

chapters 12 and 16 of title 46, as amended, entitled “Waters and Navigation”; by chapters 3, 4, 5,

6, 7, 9, 11, 13, 18, and 19 of title 4, as amended, entitled “Animals and Animal Husbandry”; and

those functions, powers, and duties specifically vested in the director of environmental

management by the provisions of § 21-2-22, as amended, entitled “Inspection of Animals and

Milk”; together with other powers and duties of the director of the department of health as are

incidental to, or necessary for, the performance of the functions transferred by this section;

     (6) To cooperate with the Rhode Island commerce corporation in its planning and

promotional functions, particularly in regard to those resources relating to agriculture, fisheries,

and recreation;

     (7) To cooperate with, advise, and guide conservation commissions of cities and towns

created under chapter 35 of title 45 entitled “Conservation Commissions”, as enacted by chapter

203 of the Public Laws, 1960;

     (8) To assign or reassign, with the approval of the governor, any functions, duties, or

powers established by this chapter to any agency within the department, except as hereinafter

limited;

     (9) To cooperate with the water resources board and to provide to the board facilities,

administrative support, staff services, and other services as the board shall reasonably require for

its operation and, in cooperation with the board and the statewide planning program, to formulate

and maintain a long-range guide plan and implementing program for development of major water-

sources transmission systems needed to furnish water to regional and local distribution systems;

     (10) To cooperate with the solid waste management corporation and to provide to the

corporation such facilities, administrative support, staff services, and other services within the

department as the corporation shall reasonably require for its operation;

     (11) To provide for the maintenance of waterways and boating facilities, consistent with

chapter 6.1 of title 46, by: (i) Establishing minimum standards for upland beneficial use and

disposal of dredged material; (ii) Promulgating and enforcing rules for water quality, groundwater

protection, and fish and wildlife protection pursuant to § 42-17.1-24; (iii) Planning for the upland

beneficial use and/or disposal of dredged material in areas not under the jurisdiction of the council

pursuant to § 46-23-6(2); (iv) Cooperating with the coastal resources management council in the

development and implementation of comprehensive programs for dredging as provided for in §§

46-23-6(1)(ii)(H) and 46-23-18.3; and (v) Monitoring dredge material management and disposal

sites in accordance with the protocols established pursuant to § 46-6.1-5(a)(3) and the

comprehensive program provided for in § 46-23-6(1)(ii)(H); no powers or duties granted herein

shall be construed to abrogate the powers or duties granted to the coastal resources management

council under chapter 23 of title 46, as amended;

     (12) To establish minimum standards, subject to the approval of the environmental

standards board, relating to the location, design, construction, and maintenance of all sewage

disposal systems;

     (13) To enforce, by such means as provided by law, the standards for the quality of air, and

water, and the design, construction, and operation of all sewage disposal systems; any order or

notice issued by the director relating to the location, design, construction, or maintenance of a

sewage disposal system shall be eligible for recordation under chapter 13 of title 34. The director

shall forward the order or notice to the city or town wherein the subject property is located and the

order or notice shall be recorded in the general index by the appropriate municipal official in the

land evidence records in the city or town wherein the subject property is located. Any subsequent

transferee of that property shall be responsible for complying with the requirements of the order or

notice. Upon satisfactory completion of the requirements of the order or notice, the director shall

provide written notice of the same, which notice shall be similarly eligible for recordation. The

original written notice shall be forwarded to the city or town wherein the subject property is located

and the notice of satisfactory completion shall be recorded in the general index by the appropriate

municipal official in the land evidence records in the city or town wherein the subject property is

located. A copy of the written notice shall be forwarded to the owner of the subject property within

five (5) days of a request for it, and, in any event, shall be forwarded to the owner of the subject

property within thirty (30) days after correction;

     (14) To establish minimum standards for the establishment and maintenance of salutary

environmental conditions, including standards and methods for the assessment and the

consideration of the cumulative effects on the environment of regulatory actions and decisions,

which standards for consideration of cumulative effects shall provide for: (i) Evaluation of potential

cumulative effects that could adversely affect public health and/or impair ecological functioning;

(ii) Analysis of other matters relative to cumulative effects as the department may deem appropriate

in fulfilling its duties, functions, and powers; which standards and methods shall only be applicable

to ISDS systems in the town of Jamestown in areas that are dependent for water supply on private

and public wells, unless broader use is approved by the general assembly. The department shall

report to the general assembly not later than March 15, 2008, with regard to the development and

application of the standards and methods in Jamestown;

     (15) To establish and enforce minimum standards for permissible types of septage,

industrial-waste disposal sites, and waste-oil disposal sites;

     (16) To establish minimum standards, subject to the approval of the environmental

standards board, for permissible types of refuse disposal facilities; the design, construction,

operation, and maintenance of disposal facilities; and the location of various types of facilities;

     (17) To exercise all functions, powers, and duties necessary for the administration of

chapter 19.1 of title 23 entitled “Rhode Island Hazardous Waste Management Act”;

     (18) To designate, in writing, any person in any department of the state government or any

official of a district, county, city, town, or other governmental unit, with that official’s consent, to

enforce any rule, regulation, or order promulgated and adopted by the director under any provision

of law; provided, however, that enforcement of powers of the coastal resources management

council shall be assigned only to employees of the department of environmental management,

except by mutual agreement or as otherwise provided in chapter 23 of title 46;

     (19) To issue and enforce the rules, regulations, and orders as may be necessary to carry

out the duties assigned to the director and the department by any provision of law; and to conduct

investigations and hearings and to issue, suspend, and revoke licenses as may be necessary to

enforce those rules, regulations, and orders. Any license suspended under the rules, regulations,

and/or orders shall be terminated and revoked if the conditions that led to the suspension are not

corrected to the satisfaction of the director within two (2) years; provided that written notice is

given by certified mail, return receipt requested, no less than sixty (60) days prior to the date of

termination.

     Notwithstanding the provisions of § 42-35-9 to the contrary, no informal disposition of a

contested licensing matter shall occur where resolution substantially deviates from the original

application unless all interested parties shall be notified of the proposed resolution and provided

with opportunity to comment upon the resolution pursuant to applicable law and any rules and

regulations established by the director;

     (20) To enter, examine, or survey, at any reasonable time, places as the director deems

necessary to carry out the director’s responsibilities under any provision of law subject to the

following provisions:

     (i) For criminal investigations, the director shall, pursuant to chapter 5 of title 12, seek a

search warrant from an official of a court authorized to issue warrants, unless a search without a

warrant is otherwise allowed or provided by law;

     (ii)(A) All administrative inspections shall be conducted pursuant to administrative

guidelines promulgated by the department in accordance with chapter 35 of this title;

     (B) A warrant shall not be required for administrative inspections if conducted under the

following circumstances, in accordance with the applicable constitutional standards:

     (I) For closely regulated industries;

     (II) In situations involving open fields or conditions that are in plain view;

     (III) In emergency situations;

     (IV) In situations presenting an imminent threat to the environment or public health, safety,

or welfare;

     (V) If the owner, operator, or agent in charge of the facility, property, site, or location

consents; or

     (VI) In other situations in which a warrant is not constitutionally required.

     (C) Whenever it shall be constitutionally or otherwise required by law, or whenever the

director in the director’s discretion deems it advisable, an administrative search warrant, or its

functional equivalent, may be obtained by the director from a neutral magistrate for the purpose of

conducting an administrative inspection. The warrant shall be issued in accordance with the

applicable constitutional standards for the issuance of administrative search warrants. The

administrative standard of probable cause, not the criminal standard of probable cause, shall apply

to applications for administrative search warrants;

     (I) The need for, or reliance upon, an administrative warrant shall not be construed as

requiring the department to forfeit the element of surprise in its inspection efforts;

     (II) An administrative warrant issued pursuant to this subsection must be executed and

returned within ten (10) days of its issuance date unless, upon a showing of need for additional

time, the court orders otherwise;

     (III) An administrative warrant may authorize the review and copying of documents that

are relevant to the purpose of the inspection. If documents must be seized for the purpose of

copying, and the warrant authorizes the seizure, the person executing the warrant shall prepare an

inventory of the documents taken. The time, place, and manner regarding the making of the

inventory shall be set forth in the terms of the warrant itself, as dictated by the court. A copy of the

inventory shall be delivered to the person from whose possession or facility the documents were

taken. The seized documents shall be copied as soon as feasible under circumstances preserving

their authenticity, then returned to the person from whose possession or facility the documents were

taken;

     (IV) An administrative warrant may authorize the taking of samples of air, water, or soil

or of materials generated, stored, or treated at the facility, property, site, or location. Upon request,

the department shall make split samples available to the person whose facility, property, site, or

location is being inspected;

     (V) Service of an administrative warrant may be required only to the extent provided for

in the terms of the warrant itself, by the issuing court.

     (D) Penalties. Any willful and unjustified refusal of right of entry and inspection to

department personnel pursuant to an administrative warrant shall constitute a contempt of court and

shall subject the refusing party to sanctions, which in the court’s discretion may result in up to six

(6) months’ imprisonment and/or a monetary fine of up to ten thousand dollars ($10,000) per

refusal;

     (21) To give notice of an alleged violation of law to the person responsible therefor

whenever the director determines that there are reasonable grounds to believe that there is a

violation of any provision of law within the director’s jurisdiction or of any rule or regulation

adopted pursuant to authority granted to the director. Nothing in this chapter shall limit the authority

of the attorney general to prosecute offenders as required by law;

     (i) The notice shall provide for a time within which the alleged violation shall be remedied,

and shall inform the person to whom it is directed that a written request for a hearing on the alleged

violation may be filed with the director within twenty (20) days after service of the notice. The

notice will be deemed properly served upon a person if a copy thereof is served the person

personally; or sent by registered or certified mail to the person’s last known address; or if the person

is served with notice by any other method of service now or hereafter authorized in a civil action

under the laws of this state. If no written request for a hearing is made to the director within twenty

(20) days of the service of notice, the notice shall automatically become a compliance order;

     (ii)(A) Whenever the director determines that there exists a violation of any law, rule, or

regulation within the director’s jurisdiction that requires immediate action to protect the

environment, the director may, without prior notice of violation or hearing, issue an immediate-

compliance order stating the existence of the violation and the action the director deems necessary.

The compliance order shall become effective immediately upon service or within such time as is

specified by the director in such order. No request for a hearing on an immediate-compliance order

may be made;

     (B) Any immediate-compliance order issued under this section without notice and prior

hearing shall be effective for no longer than forty-five (45) days; provided, however, that for good

cause shown, the order may be extended one additional period not exceeding forty-five (45) days;

     (iii) The director may, at the director’s discretion and for the purposes of timely and

effective resolution and return to compliance, cite a person for alleged noncompliance through the

issuance of an expedited citation in accordance with § 42-17.6-3(c);

     (iv) If a person upon whom a notice of violation has been served under the provisions of

this section or if a person aggrieved by any such notice of violation requests a hearing before the

director within twenty (20) days of the service of notice of violation, the director shall set a time

and place for the hearing, and shall give the person requesting that hearing at least five (5) days’

written notice thereof. After the hearing, the director may make findings of fact and shall sustain,

modify, or withdraw the notice of violation. If the director sustains or modifies the notice, that

decision shall be deemed a compliance order and shall be served upon the person responsible in

any manner provided for the service of the notice in this section;

     (v) The compliance order shall state a time within which the violation shall be remedied,

and the original time specified in the notice of violation shall be extended to the time set in the

order;

     (vi) Whenever a compliance order has become effective, whether automatically where no

hearing has been requested, where an immediate-compliance order has been issued, or upon

decision following a hearing, the director may institute injunction proceedings in the superior court

of the state for enforcement of the compliance order and for appropriate temporary relief, and in

that proceeding, the correctness of a compliance order shall be presumed and the person attacking

the order shall bear the burden of proving error in the compliance order, except that the director

shall bear the burden of proving in the proceeding the correctness of an immediate-compliance

order. The remedy provided for in this section shall be cumulative and not exclusive and shall be

in addition to remedies relating to the removal or abatement of nuisances or any other remedies

provided by law;

     (vii) Any party aggrieved by a final judgment of the superior court may, within thirty (30)

days from the date of entry of such judgment, petition the supreme court for a writ of certiorari to

review any questions of law. The petition shall set forth the errors claimed. Upon the filing of the

petition with the clerk of the supreme court, the supreme court may, if it sees fit, issue its writ of

certiorari;

     (22) To impose administrative penalties in accordance with the provisions of chapter 17.6

of this title and to direct that such penalties be paid into the account established by subsection (26);

     (23) The following definitions shall apply in the interpretation of the provisions of this

chapter:

     (i) Director: The term “director” shall mean the director of environmental management of

the state of Rhode Island or the director’s duly authorized agent;

     (ii) Person: The term “person” shall include any individual, group of individuals, firm,

corporation, association, partnership, or private or public entity, including a district, county, city,

town, or other governmental unit or agent thereof, and in the case of a corporation, any individual

having active and general supervision of the properties of the corporation;

     (iii) Service:

     (A) Service upon a corporation under this section shall be deemed to include service upon

both the corporation and upon the person having active and general supervision of the properties

of the corporation;

     (B) For purposes of calculating the time within which a claim for a hearing is made

pursuant to subsection (21)(i), service shall be deemed to be the date of receipt of such notice or

three (3) days from the date of mailing of the notice, whichever shall first occur;

     (24)(i) To conduct surveys of the present private and public camping and other recreational

areas available and to determine the need for and location of other camping and recreational areas

as may be deemed necessary and in the public interest of the state of Rhode Island and to report

back its findings on an annual basis to the general assembly on or before March 1 of every year;

     (ii) Additionally, the director of the department of environmental management shall take

additional steps, including, but not limited to, matters related to funding as may be necessary to

establish such other additional recreational facilities and areas as are deemed to be in the public

interest;

     (25)(i) To apply for and accept grants and bequests of funds, with the approval of the

director of administration, from other states, interstate agencies, and independent authorities, and

private firms, individuals, and foundations, for the purpose of carrying out the director’s lawful

responsibilities. The funds shall be deposited with the general treasurer in a restricted receipt

account created in the natural resources program for funds made available for that program’s

purposes or in a restricted receipt account created in the environmental protection program for

funds made available for that program’s purposes. All expenditures from the accounts shall be

subject to appropriation by the general assembly, and shall be expended in accordance with the

provisions of the grant or bequest. In the event that a donation or bequest is unspecified, or in the

event that the trust account balance shows a surplus after the project as provided for in the grant or

bequest has been completed, the director may utilize the appropriated unspecified or appropriated

surplus funds for enhanced management of the department’s forest and outdoor public recreation

areas, or other projects or programs that promote the accessibility of recreational opportunities for

Rhode Island residents and visitors;

     (ii) The director shall submit to the house fiscal advisor and the senate fiscal advisor, by

October 1 of each year, a detailed report on the amount of funds received and the uses made of such

funds;

     (26) To establish fee schedules by regulation, with the approval of the governor, for the

processing of applications and the performing of related activities in connection with the

department’s responsibilities pursuant to subsection (12); chapter 19.1 of title 23, as it relates to

inspections performed by the department to determine compliance with chapter 19.1 and rules and

regulations promulgated in accordance therewith; chapter 18.9 of title 23, as it relates to inspections

performed by the department to determine compliance with chapter 18.9 and the rules and

regulations promulgated in accordance therewith; chapters 19.5 and 23 of title 23; chapter 12 of

title 46, insofar as it relates to water-quality certifications and related reviews performed pursuant

to provisions of the federal Clean Water Act, 33 U.S.C. § 1251 et seq.; the regulation and

administration of underground storage tanks and all other programs administered under chapter 12

of title 46 and § 2-1-18 et seq., and chapter 13.1 of title 46 and chapter 13.2 of title 46, insofar as

they relate to any reviews and related activities performed under the provisions of the Groundwater

Protection Act; chapter 24.9 of title 23 as it relates to the regulation and administration of mercury-

added products; and chapter 17.7 of this title, insofar as it relates to administrative appeals of all

enforcement, permitting, and licensing matters to the administrative adjudication division for

environmental matters. Two (2) fee ranges shall be required: for “Appeal of enforcement actions,”

a range of fifty dollars ($50) to one hundred dollars ($100), and for “Appeal of application

decisions,” a range of five hundred dollars ($500) to ten thousand dollars ($10,000). The monies

from the administrative adjudication fees will be deposited as general revenues and the amounts

appropriated shall be used for the costs associated with operating the administrative adjudication

division.

     There is hereby established an account within the general fund to be called the water and

air protection program. The account shall consist of sums appropriated for water and air pollution

control and waste-monitoring programs and the state controller is hereby authorized and directed

to draw his or her orders upon the general treasurer for the payment of the sums, or portions thereof,

as may be required, from time to time, upon receipt by him or her of properly authenticated

vouchers. All amounts collected under the authority of this subsection (26) for the sewage-disposal-

system program and freshwater wetlands program will be deposited as general revenues and the

amounts appropriated shall be used for the purposes of administering and operating the programs.

The director shall submit to the house fiscal advisor and the senate fiscal advisor by January 15 of

each year a detailed report on the amount of funds obtained from fines and fees and the uses made

of the funds;

     (27) To establish and maintain a list or inventory of areas within the state worthy of special

designation as “scenic” to include, but not be limited to, certain state roads or highways, scenic

vistas, and scenic areas, and to make the list available to the public;

     (28) To establish and maintain an inventory of all interests in land held by public and

private land trust and to exercise all powers vested herein to ensure the preservation of all identified

lands;

     (i) The director may promulgate and enforce rules and regulations to provide for the orderly

and consistent protection, management, continuity of ownership and purpose, and centralized

records-keeping for lands, water, and open spaces owned in fee or controlled in full or in part

through other interests, rights, or devices such as conservation easements or restrictions, by private

and public land trusts in Rhode Island. The director may charge a reasonable fee for filing of each

document submitted by a land trust;

     (ii) The term “public land trust” means any public instrumentality created by a Rhode

Island municipality for the purposes stated herein and financed by means of public funds collected

and appropriated by the municipality. The term “private land trust” means any group of five (5) or

more private citizens of Rhode Island who shall incorporate under the laws of Rhode Island as a

nonbusiness corporation for the purposes stated herein, or a national organization such as the nature

conservancy. The main purpose of either a public or a private land trust shall be the protection,

acquisition, or control of land, water, wildlife, wildlife habitat, plants, and/or other natural features,

areas, or open space for the purpose of managing or maintaining, or causing to be managed or

maintained by others, the land, water, and other natural amenities in any undeveloped and relatively

natural state in perpetuity. A private land trust must be granted exemption from federal income tax

under Internal Revenue Code 501(c)(3) [26 U.S.C. § 501(c)(3)] within two (2) years of its

incorporation in Rhode Island or it may not continue to function as a land trust in Rhode Island. A

private land trust may not be incorporated for the exclusive purpose of acquiring or accepting

property or rights in property from a single individual, family, corporation, business, partnership,

or other entity. Membership in any private land trust must be open to any individual subscribing to

the purposes of the land trust and agreeing to abide by its rules and regulations including payment

of reasonable dues;

     (iii)(A) Private land trusts will, in their articles of association or their bylaws, as

appropriate, provide for the transfer to an organization, created for the same or similar purposes, of

the assets, lands and land rights, and interests held by the land trust in the event of termination or

dissolution of the land trust;

     (B) All land trusts, public and private, will record in the public records, of the appropriate

towns and cities in Rhode Island, all deeds, conservation easements, or restrictions or other interests

and rights acquired in land and will also file copies of all such documents and current copies of

their articles of association, their bylaws, and their annual reports with the secretary of state and

with the director of the Rhode Island department of environmental management. The director is

hereby directed to establish and maintain permanently a system for keeping records of all private

and public land trust land holdings in Rhode Island;

     (29) The director will contact in writing, not less often than once every two (2) years, each

public or private land trust to ascertain: that all lands held by the land trust are recorded with the

director; the current status and condition of each land holding; that any funds or other assets of the

land trust held as endowment for specific lands have been properly audited at least once within the

two-year (2) period; the name of the successor organization named in the public or private land

trust’s bylaws or articles of association; and any other information the director deems essential to

the proper and continuous protection and management of land and interests or rights in land held

by the land trust. In the event that the director determines that a public or private land trust holding

land or interest in land appears to have become inactive, the director shall initiate proceedings to

effect the termination of the land trust and the transfer of its lands, assets, land rights, and land

interests to the successor organization named in the defaulting trust’s bylaws or articles of

association or to another organization created for the same or similar purposes. Should such a

transfer not be possible, then the land trust, assets, and interest and rights in land will be held in

trust by the state of Rhode Island and managed by the director for the purposes stated at the time

of original acquisition by the trust. Any trust assets or interests other than land or rights in land

accruing to the state under such circumstances will be held and managed as a separate fund for the

benefit of the designated trust lands;

     (30) Consistent with federal standards, issue and enforce such rules, regulations, and orders

as may be necessary to establish requirements for maintaining evidence of financial responsibility

for taking corrective action and compensating third parties for bodily injury and property damage

caused by sudden and non-sudden accidental releases arising from operating underground storage

tanks;

     (31) To enforce, by such means as provided by law, the standards for the quality of air, and

water, and the location, design, construction, and operation of all underground storage facilities

used for storing petroleum products or hazardous materials; any order or notice issued by the

director relating to the location, design, construction, operation, or maintenance of an underground

storage facility used for storing petroleum products or hazardous materials shall be eligible for

recordation under chapter 13 of title 34. The director shall forward the order or notice to the city or

town wherein the subject facility is located, and the order or notice shall be recorded in the general

index by the appropriate municipal officer in the land evidence records in the city or town wherein

the subject facility is located. Any subsequent transferee of that facility shall be responsible for

complying with the requirements of the order or notice. Upon satisfactory completion of the

requirements of the order or notice, the director shall provide written notice of the same, which

notice shall be eligible for recordation. The original, written notice shall be forwarded to the city

or town wherein the subject facility is located, and the notice of satisfactory completion shall be

recorded in the general index by the appropriate municipal official in the land evidence records in

the city or town wherein the subject facility is located. A copy of the written notice shall be

forwarded to the owner of the subject facility within five (5) days of a request for it, and, in any

event, shall be forwarded to the owner of the subject facility within thirty (30) days after correction;

     (32) To manage and disburse any and all funds collected pursuant to § 46-12.9-4, in

accordance with § 46-12.9-5, and other provisions of the Rhode Island Underground Storage Tank

Financial Responsibility Act, as amended;

     (33) To support, facilitate, and assist the Rhode Island Natural History Survey, as

appropriate and/or as necessary, in order to accomplish the important public purposes of the survey

in gathering and maintaining data on Rhode Island natural history; making public presentations and

reports on natural history topics; ranking species and natural communities; monitoring rare species

and communities; consulting on open-space acquisitions and management plans; reviewing

proposed federal and state actions and regulations with regard to their potential impact on natural

communities; and seeking outside funding for wildlife management, land management, and

research;

     (34) To promote the effective stewardship of lakes, ponds, rivers, and streams including,

but not limited to, collaboration with watershed organizations and associations of lakefront property

owners on planning and management actions that will prevent and mitigate water quality

degradation, reduce the loss of native habitat due to infestation of non-native species, abate

nuisance conditions that result from excessive growth of algal or non-native plant species as well

as promote healthy freshwater riverine ecosystems;

     (35) In implementing the programs established pursuant to this chapter, to identify critical

areas for improving service to customers doing business with the department, and to develop and

implement strategies to improve performance and effectiveness in those areas. Key aspects of a

customer-service program shall include, but not necessarily be limited to, the following

components:

     (i) Maintenance of an organizational unit within the department with the express purpose

of providing technical assistance to customers and helping customers comply with environmental

regulations and requirements;

     (ii) Maintenance of an employee training program to promote customer service across the

department;

     (iii) Implementation of a continuous business process evaluation and improvement effort,

including process reviews to encourage development of quality proposals; ensure timely and

predictable reviews; and result in effective decisions and consistent follow up and implementation

throughout the department; and publish an annual report on such efforts;

     (iv) Creation of a centralized location for the acceptance of permit applications and other

submissions to the department;

     (v) Maintenance of a process to promote, organize, and facilitate meetings prior to the

submission of applications or other proposals in order to inform the applicant on options and

opportunities to minimize environmental impact; improve the potential for sustainable

environmental compliance; and support an effective and efficient review and decision-making

process on permit applications related to the proposed project;

     (vi) Development of single permits under multiple authorities otherwise provided in state

law to support comprehensive and coordinated reviews of proposed projects. The director may

address and resolve conflicting or redundant process requirements in order to achieve an effective

and efficient review process that meets environmental objectives; and

     (vii) Exploration of the use of performance-based regulations coupled with adequate

inspection and oversight, as an alternative to requiring applications or submissions for approval

prior to initiation of projects;

     (36) To formulate and promulgate regulations requiring any dock or pier longer than twenty

feet (20′) and located on a freshwater lake or pond to be equipped with reflective materials, on all

sides facing the water, of an appropriate width and luminosity such that it can be seen by operators

of watercraft;

     (37) To temporarily waive any control or prohibition respecting the use of a fuel or fuel

additive required or regulated by the department if the director finds that:

     (i) Extreme or unusual fuel or fuel additive supply circumstances exist in the state or the

New England region that prevent the distribution of an adequate supply of the fuel or fuel additive

to consumers;

     (ii) Extreme or unusual fuel or fuel additive supply circumstances are the result of a natural

disaster, an act of God, a pipeline or refinery equipment failure, or another event that could not

reasonably have been foreseen; and

     (iii) It is in the public interest to grant the waiver.

     Any temporary waiver shall be made in writing and shall be effective for twenty (20)

calendar days; provided, that the director may renew the temporary waiver, in writing, if it is

deemed necessary; and

     (38)(i) To designate by rule certain waters of the state as shellfish or marine life project

management areas for the purpose of enhancing the cultivation and growth of marine species,

managing the harvest of marine species, facilitating the conduct by the department of experiments

in planting, cultivating, propagating, managing, and developing any and all kinds of marine life,

and any other related purpose.

     (ii) Any such designation shall be by reference to fixed landmarks and include an explicit

description of the area to be designated.

     (iii) Once so designated, the director may adopt rules and regulations addressing

restrictions on the quantities, types, or sizes of marine species that may be taken in any individual

management area, the times during which marine species may be taken, the manner or manners in

that marine species may be taken, the closure of such area to the taking of marine species, or any

other specific restrictions as may be deemed necessary. Such rules shall be exempt from the

requirements of §§ 42-35-2.7, 42-35-2.8, and 42-35-2.9.

     (iv) The director, upon the designation of a management area, may place any stakes,

bounds, buoys, or markers with the words “Rhode Island department of environmental

management” plainly marked on them, as will approximate the management area. Failure to place

or maintain the stakes, bounds, buoys, or markers shall not be admissible in any judicial or

administrative proceeding.

     (v) Nothing in this section shall prevent the director from implementing emergency rules

pursuant to § 42-35-2.10.

     (39) To enter into agreements with such departments, divisions, agencies, or boards of the

state to regulate, manage, or perform related functions on any lands or waters acquired under the

provisions of the Big River — Wood River Reservoir Site Acquisition Act (Pub. L. 1964, chapter

133).

     SECTION 6. Chapter 42-17.1 of the General Laws entitled "Department of Environmental

Management" is hereby amended by adding thereto the following section:

     42-17.1-47. Big River Reservoir — Administration.

     The Rhode Island department of environmental management, established pursuant to

chapter 17.1 of this title, shall administer those lands acquired for the Big River Reservoir as

established under section 23 of chapter 133 of the Pub. L. 1964. The director of the department of

environmental management and the director’s authorized agents, employees, and designees shall

manage the land and natural resources of the Big River Reservoir. The lands of the Big River

Reservoir are subject to enforcement authority of the department of environmental management,

as provided for in chapter 17.1 of this title, and as provided for in title 20. Nothing contained herein

shall be construed to affect any of the powers granted to the water resources board ("agency") with

regard to freshwater resource management pursuant to chapters 15 and 15.1 of title 46.

     Effective July 1, 2026, the department of environmental management will assume

responsibility for all land use planning and for promulgating the rules and regulations regarding the

administration of the Big River Reservoir consistent with the requirements of § 37-20-1. The rules

and regulations promulgated under 490-RICR-00-00-5 of the Rhode Island code of regulations will

remain in full force and effect until such a time as the rules and regulations are properly transferred

to and promulgated by the department of environmental management's title within the Rhode Island

code of regulations.

     SECTION 7. Sections 42-28-5 and 42-28-22 of the General Laws in Chapter 42-28 entitled

"State Police" are hereby amended to read as follows:

     42-28-5. Superintendent — Appointment, tenure, duties, and retirement.

     (a) The governor shall appoint the superintendent of state police, who shall serve at the

pleasure of the governor and shall perform the duties prescribed by this chapter.

     (b) Any superintendent who has served for at least ten (10) years and has reached the age

of sixty (60) years, may resign the superintendent’s office, and thereafter shall receive annually

during his or her life a sum equal to fifty percent (50%) of the salary the superintendent was

receiving at the time of the superintendent’s resignation, or for any superintendent hired on or after

July 1, 2012, a sum equal to fifty percent (50%) of the average compensation as defined in § 36-8-

1(5)(a) the superintendent was receiving at the time of the superintendent’s resignation.

     (c) In no event shall the retirement allowance granted to a superintendent in accordance

with subsection (b) plus any other retirement allowance received by the superintendent from any

state or municipal retirement system exceed seventy-five percent (75%) of the average

compensation as defined in § 36-8-1(5)(a) the superintendent was receiving at the time of the

superintendent’s resignation. This subsection (c) shall only apply to superintendents hired on or

after July 1, 2012.

     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 subsections (c)(1) and (c)(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 subsection (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-year (5) 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 retires prior to July 1, 2026, 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 retires prior to July 1, 2026, 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, and retires prior

to July 1, 2026, 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)(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 as defined in § 36-8-1(5).

     (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 subsections (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 subsection

(j)(1)(ii)(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 (j)(4) shall be effective for the period July 1, 2012, through June 30,

2015.

     (i) Notwithstanding the prior subsections of this section, and subject to subsection (j)(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

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 member’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 (4)(i)(A) above. The “Five-Year Average Investment

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

determined by the retirement board. Subject to subsection (j)(4)(ii) below, the benefit adjustment

provided by this subsection (j)(4)(i) shall commence upon the third (3rd) anniversary of the date of

retirement or the date on which the retiree reaches age fifty-five (55), 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.

     (ii) Except as provided in subsection (j)(4)(iii), the benefit adjustments under this section

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 members for such

plan year.

     In determining whether a funding level under this subsection (j)(4)(ii) 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.

     (iii) Notwithstanding subsection (j)(4)(ii), 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

(j)(4)(i) 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%).

     (iv) The provisions of this subsection (j)(4) shall become effective July 1, 2012, and shall

apply to any benefit adjustment not granted on or prior to June 30, 2012.

     (v) The cost-of-living adjustment as provided in this subsection (j)(4) 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.

     (5) This subsection (j)(5) shall become effective July 1, 2015.

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

subsection (j)(5)(i)(A), a one-time benefit adjustment shall be provided to members and/or

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

(2%) of the lesser of either the member’s retirement allowance or the first twenty-five thousand

dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be

provided without regard to the retiree’s age or number of years since retirement.

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

members, active and retired members, and beneficiaries receiving any retirement, disability or

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year

under this section for adjustments on and after January 1, 2016, and subject to subsection (j)(5)(ii)

below, shall be equal to (I) multiplied by (II):

     (I) shall equal the sum of fifty percent (50%) of (1) plus fifty percent (50%) of (2) where:

     (1) 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.

     (2) 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 U.S. Department of Labor

Statistics determined as of September 30 of the prior calendar year.

     In no event shall the sum of (1) plus (2) exceed three and one-half percent (3.5%) or be

less than zero percent (0%).

     (II) is equal to the lesser of either the member’s retirement allowance or the first twenty-

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

be indexed annually in the same percentage as determined under (j)(5)(i)(B)(I) above. The benefit

adjustments provided by this subsection (j)(5)(i)(B) 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 their Social Security retirement age, whichever is later.

     (ii) Except as provided in subsection (j)(5)(iii), the benefit adjustments under subsection

(j)(5)(i)(B) 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 members 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 (j)(5)(ii) 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.

     (iii) Notwithstanding subsection (j)(5)(ii), 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: (A) A benefit adjustment shall be calculated and made in accordance with

subsection (j)(5)(i)(B) above; and (B) Effective for members and/or beneficiaries of members who

retired on or before June 30, 2015, the dollar amount in (j)(5)(i)(B)(II) of twenty-five thousand

eight hundred fifty-five dollars ($25,855) shall be replaced with thirty-one thousand 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%).

     (iv) 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.

     (6) Any member with contributory service on or after July 1, 2012, who has completed at

least five (5) years of contributory service but who has not retired in accordance with subsection

(j)(1) above, shall be eligible to retire upon the attainment of the member’s Social Security

retirement age as defined in § 36-8-1(20).

     (7) In no event shall a member’s retirement allowance be less than the member’s retirement

allowance calculated as of June 30, 2012, based on the member’s years of total service and whole

salary as of June 30, 2012.

     (k) In calculating the retirement benefit for any member, the term base salary as used in

subsection (b)(3) or average compensation as used in subsection (j) shall not be affected by a

deferral of salary plan or a reduced salary plan implemented to avoid shutdowns or layoffs or to

effect cost savings. Basic salary shall remain for retirement calculation that which it would have

been but for the salary deferral or salary reduction due to a plan implemented to avoid shutdowns

or layoffs or to effect cost savings.

     (l) On and after July 1, 2026, notwithstanding any provision to the contrary:

     (1) Any member of the state police who is hired prior to July 1, 2007, and who was not

eligible to retire on or before June 30, 2012, who has served for twenty (20) 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 whole salary as defined in

subsection (b) of this section. Subject to the exceptions set forth in subsections (l)(1)(i), (l)(1)(ii)

and (l)(1)(iii) of this section such members may serve up to a maximum of twenty-five (25) years,

and shall be allowed an additional amount equal to three percent (3.0%) 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) of this section.

"Whole salary" for purposes of the retirement allowance shall be calculated pursuant to subsection

(b) of this section and be based on the average of the member's highest three (3) consecutive years

of compensation.

     (i) Notwithstanding any provision to the contrary, any member who was sworn into service

with the Rhode Island state police during the year 1997, shall not be required to retire before

September 1, 2026. Any member who has worked beyond their twenty-fifth (25th) year, pursuant

to the provisions of this subsection and elects to work until September 1, 2026, shall accrue no

additional service credit but shall continue to make retirement contributions in accordance with §

42-28-22.1, and the whole salary for purposes of the retirement allowance shall be calculated

pursuant to subsection (b) of this section and be based on the average of the member's highest three

(3) consecutive years of compensation.

     (ii) Notwithstanding any provision to the contrary, any member who was sworn into service

with the Rhode Island state police during the year 2000, shall not be required to retire before

January 18, 2028. Any member who has worked beyond their twenty-fifth (25th) year, pursuant to

the provisions of this subsection and elects to work until January 18, 2028, shall accrue no

additional service credit but shall continue to make retirement contributions in accordance with §

42-28-22.1 and the whole salary for purposes of the retirement allowance shall be calculated

pursuant to subsection (b) of this section and be based on the average of the member's highest three

(3) consecutive years of compensation.

     (iii) Notwithstanding any provision to the contrary, any member who was sworn into

service with the Rhode Island state police during the year 2005, shall not be required to retire before

January 21, 2031. Any member who has worked beyond their twenty-fifth (25th) year, pursuant to

the provisions of this subsection and elects to work until January 21, 2031, shall accrue no

additional service credit but shall continue to make retirement contributions in accordance with §

42-28-22.1 and the whole salary for purposes of the retirement allowance shall be calculate

pursuant to subsection (b) of this section and be based on the average of the member's highest three

(3) consecutive years of compensation.

     (2) Any member of the state police hired on or after July 1, 2007, 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 whole salary as defined in subsection (b) of this section. Such members may serve 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 the member’s “whole salary” as defined

in subsection (b) of this section. "Whole salary" for purposes of the retirement allowance shall be

calculated pursuant to subsection (b) of this section and be based on the average of the member's

highest three (3) consecutive years of compensation.

     (m) Any member of the state police, or their beneficiary, who retired on or after July 1,

2024, and prior to July 1, 2026, shall have their retirement allowance recalculated, retroactive to

their date of retirement, to reflect the benefit provided in subsections (b) and (l) of this section. This

provision shall be implemented as soon as administratively feasible. In no event shall a member's

retirement allowance under this provision be less than the member's retirement allowance

calculated as of the date of their retirement.

     SECTION 8. Sections 42-64.20-5 and 42-64.20-10 of the General Laws in Chapter 42-

64.20 entitled "Rebuild Rhode Island Tax Credit" are hereby amended to read as follows:

     42-64.20-5. Tax credits.

     (a) An applicant meeting the requirements of this chapter may be allowed a credit as set

forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of

the general laws for a qualified development project.

     (b) To be eligible as a qualified development project entitled to tax credits, an applicant’s

chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the

time of application, that:

     (1) The applicant has committed a capital investment or owner equity of not less than

twenty percent (20%) of the total project cost;

     (2) There is a project financing gap in which after taking into account all available private

and public funding sources, the project is not likely to be accomplished by private enterprise

without the tax credits described in this chapter; and

     (3) The project fulfills the state’s policy and planning objectives and priorities in that:

     (i) The applicant will, at the discretion of the commerce corporation, obtain a tax

stabilization agreement from the municipality in which the real estate project is located on such

terms as the commerce corporation deems acceptable;

     (ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied

by at least one business employing at least 25 full-time employees after construction or such

additional full-time employees as the commerce corporation may determine; (B) Is a multi-family

residential development in a new, adaptive reuse, certified historic structure, or recognized

historical structure consisting of at least 20,000 square feet and having at least 20 residential units

in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic

structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at

least one business, subject to further definition through rules and regulations promulgated by the

commerce corporation; and

     (iii) Involves a total project cost of not less than $5,000,000, except for a qualified

development project located in a hope community or redevelopment area designated under § 45-

32-4 in which event the commerce corporation shall have the discretion to modify the minimum

project cost requirement.

     (4) Until July 1, 2025, pursuant to P.L. 2022 ch. 271 and P.L. 2022 ch. 272, for construction

projects in excess of ten million dollars ($10,000,000), all construction workers shall be paid in

accordance with the wages and benefits required pursuant to chapter 13 of title 37 with all

contractors and subcontractors required to file certified payrolls on a monthly basis for all work

completed in the preceding month on a uniform form prescribed by the director of labor and

training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a

material violation and a material breach of the agreement with the state. The commerce corporation,

in consultation with the director of labor and training and the tax administrator, shall promulgate

such rules and regulations as are necessary to implement the enforcement of this subsection. The

provisions of this subsection shall expire and sunset on July 1, 2025.

     (5) Notwithstanding any general or special law or rule or regulation to the contrary, for

construction projects that have executed a tax credit agreement on or after July 1, 2025, and

involving a budget of direct hard construction costs (as defined in § 44-33.6-2) in excess of twenty-

five million dollars ($25,000,000), all construction workers shall be paid in accordance with the

wages and benefits required pursuant to chapter 13 of title 37 with all contractors and

subcontractors required to file certified payrolls on a monthly basis for all work completed in the

preceding month on a uniform form prescribed by the director of labor and training. Failure to

follow the requirements pursuant to chapter 13 of title 37 shall constitute a material violation and

a material breach of the agreement with the state. The commerce corporation, in consultation with

the director of labor and training and the tax administrator, shall promulgate such rules and

regulations as are necessary to implement the enforcement of this subsection.

     (c) The commerce corporation shall develop separate, streamlined application processes

for the issuance of rebuild RI tax credits for each of the following:

     (1) Qualified development projects that involve certified historic structures;

     (2) Qualified development projects that involve recognized historical structures;

     (3) Qualified development projects that involve at least one manufacturer; and

     (4) Qualified development projects that include affordable housing or workforce housing.

     (d) Applications made for a historic structure or recognized historic structure tax credit

under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of

taxation, at the expense of the commerce corporation, shall provide communications from the

commerce corporation to those who have applied for and are in the queue awaiting the offer of tax

credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax

credit program.

     (e) Applicants (1) Who have received the notice referenced in subsection (d) above and

who may be eligible for a tax credit pursuant to chapter 33.6 of title 44; (2) Whose application

involves a certified historic structure or recognized historical structure; or (3) Whose project is

occupied by at least one manufacturer shall be exempt from the requirements of subsections

(b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants:

     (i) The division of taxation shall remain responsible for determining the eligibility of an

applicant for tax credits awarded under chapter 33.6 of title 44;

     (ii) The commerce corporation shall retain sole authority for determining the eligibility of

an applicant for tax credits awarded under this chapter;

     (iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the

annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this

subsection (e); and

     (iv) No tax credits shall be awarded under this chapter unless the commerce corporation

receives confirmation from the department of labor and training that there has been compliance

with the prevailing wage requirements set forth in subsection (b) of this section.

     (f) Maximum project credit.

     (1) For qualified development projects, the maximum tax credit allowed under this chapter

shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to

close a project financing gap (after taking into account all other private and public funding sources

available to the project), as determined by the commerce corporation.

     (2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000)

for any qualified development project under this chapter; except as provided in subsection (f)(3) of

this section; provided however, any qualified development project that exceeds the project cap upon

passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further

increased. No building or qualified development project to be completed in phases or in multiple

projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all

phases or projects involved in the rehabilitation of the building. Provided, however, that for

purposes of this subsection and no more than once in a given fiscal year, the commerce corporation

may consider the development of land and buildings by a developer on the “I-195 land” as defined

in § 42-64.24-3(6) as a separate, qualified development project from a qualified development

project by a tenant or owner of a commercial condominium or similar legal interest including

leasehold improvement, fit out, and capital investment. Such qualified development project by a

tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be

exempted from subsection (f)(1)(i) of this section.

     (3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars

($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter

into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that

project is approved for credits pursuant to this chapter by the commerce corporation.

     (4) For qualified development projects involving the development of housing and mixed

use projects involving housing which are restricted to require at least twenty percent (20%) of the

housing units being affordable housing or workforce housing development for residents making no

more than between eighty percent (80%) and one hundred twenty percent (120%) of the area

median income (AMI) shall be allowed sales and use tax exemptions of up to thirty percent (30%)

of the maximum project credit in addition to the maximum project credit of fifteen million dollars

($15,000,000) pursuant to this chapter. Any sales and use tax exemptions allowed in addition to the

maximum project credit shall be for purchases made by June 30, 2028.

     (g) Credits available under this chapter shall not exceed twenty percent (20%) of the project

cost, provided, however, that the applicant shall be eligible for additional tax credits of not more

than ten percent (10%) of the project cost, if the qualified development project meets any of the

following criteria or other additional criteria determined by the commerce corporation from time

to time in response to evolving economic or market conditions:

     (1) The project includes adaptive reuse or development of a recognized historical structure;

     (2) The project is undertaken by or for a targeted industry;

     (3) The project is located in a transit-oriented development area;

     (4) The project includes residential development of which at least twenty percent (20%) of

the residential units are designated as affordable housing or workforce housing;

     (5) The project includes the adaptive reuse of property subject to the requirements of the

industrial property remediation and reuse act, § 23-19.14-1 et seq.; or

     (6) The project includes commercial facilities constructed in accordance with the minimum

environmental and sustainability standards, as certified by the commerce corporation pursuant to

Leadership in Energy and Environmental Design or other equivalent standards.

     (h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter,

inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed

two hundred twenty-five million dollars ($225,000,000) two hundred fifty million dollars

($250,000,000), excluding any tax credits allowed pursuant to subsection (f)(3) of this section.

     (i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the

project is placed in service.

     (j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer

in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent

(15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable

year.

     (k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total

tax liability for the year in which the relevant portion of the credit is allowed, the amount that

exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for

the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed

to a partnership, a limited liability company taxed as a partnership, or multiple owners of property

shall be passed through to the persons designated as partners, members, or owners respectively pro

rata or pursuant to an executed agreement among persons designated as partners, members, or

owners documenting an alternate distribution method without regard to their sharing of other tax

or economic attributes of such entity.

     (l) The commerce corporation, in consultation with the division of taxation, shall establish,

by regulation, the process for the assignment, transfer, or conveyance of tax credits.

     (m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer

for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from

taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation

for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds,

without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a

natural person, the seller’s tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable,

for the year of revocation, or adjustment, shall be increased by including the total amount of the

sales proceeds without proration.

     (n) The tax credit allowed under this chapter may be used as a credit against corporate

income taxes imposed under chapter 11, 13, 14, or 17 of title 44, or may be used as a credit against