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2026 -- H 7127

S T A T E O F R H O D E I S L A N D

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

A N A C T

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2027

Introduced By: Representative Marvin L. Abney

Date Introduced: January 15, 2026

Referred To: House Finance

(Governor)

It is enacted by the General Assembly as follows:

1		ARTICLE 1	RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY
2	2027
3		ARTICLE 2	RELATING TO STATE FUNDS
4		ARTICLE 3	RELATING TO GOVERNMENT REFORM AND REORGANIZATION
5		ARTICLE 4	RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS
6		ARTICLE 5	RELATING TO TAXES AND FEES
7		ARTICLE 6	RELATING TO CAPITAL DEVELOPMENT PROGRAM
8		ARTICLE 7	RELATING TO EDUCATION
9		ARTICLE 8	RELATING TO MEDICAL ASSISTANCE
10		ARTICLE 9	RELATING TO LEASES
11		ARTICLE 10	RELATING TO HEALTH AND HUMAN SERVICES
12		ARTICLE 11	RELATING TO AFFORDABILITY
13		ARTICLE 12	RELATING TO EFFECTIVE DATE

ARTICLE 1
RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2027
SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in
this act, the following general revenue amounts are hereby appropriated out of any money in the
treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2027.
The amounts identified for federal funds and restricted receipts shall be made available pursuant to
§ 35-4-22 and chapter 41 of title 42. For the purposes and functions hereinafter mentioned, the state
controller is hereby authorized and directed to draw the state controller’s orders upon the general
treasurer for the payment of such sums or such portions thereof as may be required from time to
time upon receipt by the state controller of properly authenticated vouchers.
Administration
Central Management
General Revenues 4,006,929
Restricted Receipts 853,701
Total - Central Management 4,860,630
Legal Services
General Revenues 2,998,750
Accounts and Control
General Revenues 650,061
Restricted Receipts - OPEB Board Administration 100,000
Restricted Receipts - Grants Management Administration 1,726,550
Total - Accounts and Control 2,476,611
Office of Management and Budget
General Revenues 11,156,879
Federal Funds
Federal Funds 151,778
Federal Funds – Capital Projects Fund
CPF Administration 668,915
Federal Funds – State Fiscal Recovery Fund
Pandemic Recovery Office 682,668
Restricted Receipts 300,000
Other Funds 1,191,363
Total - Office of Management and Budget 14,151,603
Purchasing

1 General Revenues	2,411,346
2 Restricted Receipts	3,180,152
3 Other Funds	670,572
4 Total - Purchasing	6,262,070
5 Human Resources
6 General Revenues	701,698
7 Personnel Appeal Board
8 General Revenues	152,228
9 Information Technology
10 General Revenues	998,042
11 Restricted Receipts	1,124,485
12 Total - Information Technology	2,122,527
13 Library and Information Services
14 General Revenues	2,214,102
15 Federal Funds	1,639,564
16 Restricted Receipts	6,990
17 Total - Library and Information Services	3,860,656
18 Planning
19 General Revenues	1,126,048
20 Restricted Receipts	50,000
21 Other Funds
22 Air Quality Modeling	24,000
23 Federal Highway - PL Systems Planning	3,851,173
24 State Transportation Planning Match	670,918
25 FTA - Metro Planning Grant	1,571,094
26 Total - Planning	7,293,233
27 General
28 General Revenues
29 Miscellaneous Grants/Payments	3,980,821
30 Torts Court Awards	1,850,000
31 Wrongful Conviction Awards	900,000
32 Resource Sharing and State Library Aid	12,095,022
33 Library Construction Aid	2,097,515
34 Restricted Receipts	700,000

1 Other Funds
2 Rhode Island Capital Plan Funds
3 Security Measures State Buildings	950,000
4 Cranston Street Armory	100,000
5 State House Renovations	17,379,000
6 Zambarano Buildings and Campus	2,300,000
7 Replacement of Fueling Tanks	620,000
8 Environmental Compliance	225,000
9 Big River Management Area	746,000
10 Shepard Building Upgrades	3,920,000
11 RI Convention Center Authority	2,825,000
12 Pastore Center Power Plant	3,500,000
13 DoIT Enterprise Operations Center	3,700,000
14 Cannon Building	3,925,000
15 Old State House	600,000
16 State Office Building	975,000
17 State Office Reorganization & Relocation	750,000
18 William Powers Building	2,600,000
19 Pastore Center Non-Hospital Buildings Asset Protection	6,250,000
20 Washington County Government Center	200,000
21 Chapin Health Laboratory	300,000
22 560 Jefferson Blvd Asset Protection	50,000
23 Arrigan Center	100,000
24 Civic Center	1,250,000
25 Veterans Auditorium	275,000
26 Pastore Center Hospital Buildings Asset Protection	1,750,000
27 Pastore Campus Infrastructure	20,000,000
28 Community Facilities Asset Protection	1,425,043
29 Medical Examiners - New Facility	1,050,000
30 Group Home Replacement & Rehabilitation	5,000,000
31 Zambarano LTAC Hospital	2,000,000
32 Total - General	106,388,401
33 Debt Service Payments
34 General Revenues	176,670,576

1 Other Funds
2 Transportation Debt Service	27,630,704
3 Investment Receipts - Bond Funds	100,000
4 Total - Debt Service Payments	204,401,280
5 Rhode Island Health Benefits Exchange
6 General Revenues	11,383,620
7 Federal Funds	12,244,211
8 Restricted Receipts	18,363,602
9 Total - Rhode Island Health Benefits Exchange	41,991,433
10 Division of Equity, Diversity & Inclusion
11 General Revenues	2,198,317
12 Other Funds	116,324
13 Total - Division of Equity, Diversity & Inclusion	2,314,641
14 Capital Asset Management and Maintenance
15 General Revenues	9,922,655
16 Statewide Personnel and Operations
17 General Officer Transition Costs
18 General Revenues	464,000
19 Total - Statewide Personnel and Operations	464,000
20 Grand Total - Administration	410,362,416
21 Office of Energy Resources
22 Federal Funds	32,548,662
23 Restricted Receipts	38,536,799
24 Other Funds
25 National Electric Vehicle Infrastructure Formula Program	14,570,364
26 Rhode Island Capital Plan Funds
27 Energy Efficiency Improvements	1,000,000
28 Grand Total – Office of Energy Resources	86,655,825
29 Business Regulation
30 Central Management
31 General Revenues	4,188,236
32 Restricted Receipts	39,014
33 Total - Central Management	4,227,250
34 Banking Regulation

1 General Revenues	2,038,094
2 Restricted Receipts	100,000
3 Total - Banking Regulation	2,138,094
4 Securities Regulation
5 General Revenues	1,031,168
6 Insurance Regulation
7 General Revenues	5,406,581
8 Restricted Receipts	2,417,538
9 Total - Insurance Regulation	7,824,119
10 Office of the Health Insurance Commissioner
11 General Revenues	3,119,299
12 Federal Funds	552,446
13 Restricted Receipts	612,142
14 Total - Office of the Health Insurance Commissioner	4,283,887
15 Board of Accountancy
16 General Revenues	5,490
17 Commercial Licensing and Gaming and Athletics Licensing
18 General Revenues	1,301,739
19 Restricted Receipts	1,277,843
20 Total - Commercial Licensing and Gaming and Athletics Licensing	2,579,582
21 Building, Design and Fire Professionals
22 General Revenues	9,290,874
23 Federal Funds	344,288
24 Restricted Receipts	3,113,579
25 Other Funds
26 Quonset Development Corporation	68,580
27 Rhode Island Capital Plan Funds
28 Fire Academy Expansion	962,000
29 Total - Building, Design and Fire Professionals	13,779,321
30 Grand Total - Business Regulation	35,868,911
31 RI Cannabis Control Commission
32 Restricted Receipts	7,964,425
33 Executive Office of Commerce
34 Central Management

1 General Revenues	3,167,540
2 Quasi-Public Appropriations
3 General Revenues
4 Rhode Island Commerce Corporation	8,506,041
5 Airport Impact Aid	1,010,036

Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be
distributed to each airport serving more than 1,000,000 passengers based upon its percentage of the
total passengers served by all airports serving more than 1,000,000 passengers. Forty percent (40%)
of the first $1,000,000 shall be distributed based on the share of landings during calendar year 2026
at North Central Airport, Newport-Middletown Airport, Block Island Airport, Quonset Airport,
T.F. Green International Airport and Westerly Airport, respectively. The Rhode Island commerce
corporation shall make an impact payment to the towns or cities in which the airport is located
based on this calculation. Each community upon which any part of the above airports is located
shall receive at least $25,000.

15 STAC Research Alliance	900,000
16 Innovative Matching Grants/Internships	1,000,000
17 I-195 Redevelopment District Commission	1,245,050
18 Polaris Manufacturing Grant	500,000
19 East Providence Waterfront Commission	50,000
20 Urban Ventures	140,000
21 Chafee Center at Bryant	476,200
22 Blackstone Valley Visitor Center	75,000
23 Industrial Recreational Building Authority Obligations	105,094
24 Other Funds
25 Rhode Island Capital Plan Funds
26 I-195 Redevelopment District Commission	1,000,000
27 I-195 Park Improvements	500,000
28 Quonset Infrastructure	2,500,000
29 Total - Quasi-Public Appropriations	18,007,421
30 Economic Development Initiatives Fund
31 General Revenues
32 Rebuild RI Tax Credit Fund	6,100,000
33 Destination Marketing	1,500,000
34 Federal Funds	21,292,601

1 Total - Economic Development Initiatives Fund	28,892,601
2 Commerce Programs
3 General Revenues
4 Wavemaker Fellowship	1,016,621
5 Air Service Development Fund	2,728,800
6 Main Street RI Streetscape Improvement Fund	1,000,000
7 Total - Commerce Programs	4,745,421
8 Grand Total - Executive Office of Commerce	54,812,983
9 Housing
10 General Revenues	8,343,617
11 Provided that $100,000 shall support Sojourner House’s supportive housing and rapid
12 rehousing activities.
13 Federal Funds	19,300,731
14 Restricted Receipts	23,018,954
15 Other Funds
16 Rhode Island Capital Plan Funds
17 Housing Asset Protection	1,700,000
18 Grand Total - Housing	52,363,302
19 Labor and Training
20 Central Management
21 General Revenues	1,457,908
22 Restricted Receipts	423,851
23 Total - Central Management	1,881,759
24 Workforce Development Services
25 General Revenues	884,194
26 Federal Funds	17,651,272
27 Total - Workforce Development Services	18,535,466
28 Workforce Regulation and Safety
29 General Revenues	5,558,728
30 Income Support
31 General Revenues	3,733,778
32 Federal Funds	24,274,004
33 Restricted Receipts	5,047,984
34 Other Funds

1 Temporary Disability Insurance Fund	299,751,826
2 Employment Security Fund	296,100,000
3 Total - Income Support	628,907,592
4 Injured Workers Services
5 Restricted Receipts	12,566,297
6 Labor Relations Board
7 General Revenues	647,572
8 Governor’s Workforce Board
9 General Revenues	6,050,000

Provided that $600,000 of these funds shall be used for enhanced training for direct care
and support services staff to improve resident quality of care and address the changing health care
needs of nursing facility residents due to higher acuity and increased cognitive impairments
pursuant to § 23-17.5-36.
Restricted Receipts 18,984,326
Provided that at least $150,000 of these funds shall be used to provide hospitality industry
workforce training grants including, but not limited to, certified food and alcohol safety training
programs offered in multiple languages.

18 Total - Governor’s Workforce Board	25,034,326
19 Grand Total - Labor and Training	693,131,740
20 Department of Revenue
21 Director of Revenue
22 General Revenues	2,929,554
23 Office of Revenue Analysis
24 General Revenues	1,203,684
25 Lottery Division
26 Other Funds	433,759,131
27 Municipal Finance
28 General Revenues	2,068,751
29 Taxation
30 General Revenues	39,387,176
31 Restricted Receipts	3,293,102
32 Other Funds
33 Motor Fuel Tax Evasion	175,000
34 Total - Taxation	42,855,278

1 Registry of Motor Vehicles
2 General Revenues	36,068,291
3 Federal Funds	300,000
4 Restricted Receipts	5,629,330
5 Total - Registry of Motor Vehicles	41,997,621
6 State Aid
7 General Revenues
8 Distressed Communities Relief Fund	14,884,458
9 Payment in Lieu of Tax Exempt Properties	49,049,142
10 Motor Vehicle Excise Tax Payments	239,550,236
11 Property Revaluation Program	826,038
12 Tangible Tax Exemption Program	25,908,469
13 Restricted Receipts	1,125,000
14 Total - State Aid	331,343,343
15 Collections
16 General Revenues	1,134,318
17 Grand Total - Revenue	857,291,680
18 Legislature
19 General Revenues	61,280,709
20 Restricted Receipts	2,785,548
21 Grand Total - Legislature	64,066,257
22 Lieutenant Governor
23 General Revenues	1,574,369
24 Secretary of State
25 Administration
26 General Revenues	6,097,668
27 Provided that $100,000 be allocated to	support the Rhode Island Council for the
28 Humanities for grant making to civic and cultural organizations, and $50,000 to support Rhode
29 Island’s participation in the We the People Civics Challenge.
30 Corporations
31 General Revenues		2,794,958
32 State Archives
33 General Revenues		475,184
34 Restricted Receipts		393,474

1 Total - State Archives	868,658
2 Elections and Civics
3 General Revenues	3,117,860
4 Federal Funds	2,000,000
5 Total - Elections and Civics	5,117,860
6 State Library
7 General Revenues	680,710
8 Provided that $125,000 be allocated to support the Rhode Island Historical	Society and
9 $18,000 be allocated to support the Newport Historical Society, pursuant to §§ 29-2-1	and 29-2-2,
10 and $25,000 be allocated to support the Rhode Island Black Heritage Society.
11 Office of Public Information
12 General Revenues	674,705
13 Receipted Receipts	25,000
14 Total - Office of Public Information	699,705
15 Grand Total - Secretary of State	16,259,559
16 General Treasurer
17 Treasury
18 General Revenues	3,465,294
19 Federal Funds	365,991
20 Other Funds
21 Temporary Disability Insurance Fund	252,905
22 Tuition Savings Program - Administration	377,716
23 Total - Treasury	4,461,906
24 State Retirement System
25 Restricted Receipts
26 Admin Expenses - State Retirement System	13,397,239
27 Retirement - Treasury Investment Operations	3,108,665
28 Defined Contribution - Administration	263,124
29 Total - State Retirement System	16,769,028
30 Unclaimed Property
31 Restricted Receipts	3,437,867
32 Crime Victim Compensation
33 General Revenues	952,526
34 Federal Funds	467,993

1 Restricted Receipts	228,827
2 Total - Crime Victim Compensation	1,649,346
3 Grand Total - General Treasurer	26,318,147
4 Board of Elections
5 General Revenues	9,147,157
6 Rhode Island Ethics Commission
7 General Revenues	2,556,898
8 Office of Governor
9 General Revenues
10 General Revenues	9,480,312
11 Contingency Fund	150,000
12 Grand Total - Office of Governor	9,630,312
13 Commission for Human Rights
14 General Revenues	2,358,433
15 Federal Funds	443,446
16 Grand Total - Commission for Human Rights	2,801,879
17 Public Utilities Commission
18 Federal Funds	759,025
19 Restricted Receipts	15,258,327
20 Grand Total - Public Utilities Commission	16,017,352
21 Executive Office of Health and Human Services
22 Central Management
23 General Revenues	94,942,371

Of this amount, $900,000 is to provide mobile response and stabilization services for
uninsured and underinsured child and youth and cover services and costs not otherwise reimbursed;

26 and $600,000 is for Planned Parenthood.
27 Federal Funds	254,983,208
28 Restricted Receipts	7,277,708
29 Total - Central Management	357,203,287
30 Medical Assistance
31 General Revenues
32 Managed Care	479,954,645
33 Hospitals	147,921,080
34 Nursing Facilities	200,251,776

1 Home and Community Based Services	128,212,807
2 Other Services	128,214,236
3 Pharmacy	98,981,507
4 Rhody Health	271,026,029
5 Federal Funds
6 Managed Care	680,237,625
7 Hospitals	293,608,369
8 Nursing Facilities	273,484,597
9 Home and Community Based Services	175,128,285
10 Other Services	734,939,712
11 Pharmacy	418,493
12 Rhody Health	386,619,266
13 Other Programs	45,400,000
14 Restricted Receipts	7,350,000
15 Total - Medical Assistance	4,051,748,427
16 Grand Total – Executive Office of Health and Human Services	4,408,951,714
17 Children, Youth and Families
18 Central Management
19 General Revenues	20,380,243
20 Federal Funds	13,745,250
21 Total - Central Management	34,125,493
22 Children's Behavioral Health Services
23 General Revenues	9,152,509
24 Federal Funds	8,693,793
25 Total - Children's Behavioral Health Services	17,846,302
26 Youth Development Services
27 General Revenues	27,165,270
28 Federal Funds	142,202
29 Other Funds
30 Rhode Island Capital Plan Funds
31 Training School Asset Protection	250,000
32 Psychiatric Residential Treatment Facility Modifications	22,500,000
33 Total - Youth Development Services	50,057,472
34 Child Welfare

General Revenues 211,367,235
Federal Funds 90,620,047
Restricted Receipts 1,670,684
Total - Child Welfare 303,657,966
Higher Education Incentive Grants
General Revenues 200,000
Provided that these funds and any unexpended or unencumbered previous years’ funding
are to be used exclusively to fund awards to eligible youth.
Grand Total - Children, Youth and Families 405,887,233
Health
Central Management
General Revenues
General Revenues 2,175,312
Of this amount, $50,000 is to support the Gloria Gemma Breast Cancer Resource
Foundation and the organization’s new survivorship and well-being center in Lincoln, RI.
Psychiatry Resource Network 750,278
Federal Funds 4,545,892
Restricted Receipts 20,674,069
Total - Central Management 28,145,551
Community Health and Equity
General Revenues 2,075,952
Federal Funds 88,026,519
Restricted Receipts 63,187,377
Total - Community Health and Equity 153,289,848
Environmental Health
General Revenues 7,058,661
Federal Funds 14,034,394
Restricted Receipts 1,011,757
Total - Environmental Health 22,104,812
Health Laboratories
General Revenues 10,704,871
Federal Funds 2,627,831
Other Funds
Rhode Island Capital Plan Funds

1 Health Laboratories & Medical Examiner Equipment	400,000
2 Total - Health Laboratories	13,732,702
3 State Medical Examiners
4 General Revenues	4,559,163
5 Federal Funds	67,325
6 Total – State Medical Examiners	4,626,488
7 Healthcare Quality and Safety
8 General Revenues	10,298,205
9 Federal Funds	7,529,889
10 Restricted Receipts	1,067,007
11 Total – Healthcare Quality and Safety	18,895,101
12 Policy, Information and Communications
13 General Revenues	2,819,000

Provided that $200,000 of this amount and its corresponding federal match is used for loan
repayment assistance specifically for primary care physicians and pediatricians through the Health

16 Professional Loan Repayment Program authorized by § 23-14.1.
17 Federal Funds	5,606,211
18 Restricted Receipts	839,044
19 Total - Policy, Information and Communications	9,264,255
20 Emergency Preparedness and Infectious Disease
21 General Revenues	2,110,829
22 Federal Funds	17,782,327
23 Total – Emergency Preparedness and Infectious Disease	19,893,156
24 COVID-19
25 Federal Funds	7,519,108
26 Grand Total - Health	277,471,021
27 Human Services
28 Central Management
29 General Revenues	7,784,531

Of this amount, $400,000 is to support the domestic violence prevention fund to provide
direct services through the Coalition Against Domestic Violence, $25,000 for the Center for
Southeast Asians, $450,000 to support Project Reach activities provided by the RI Alliance of Boys
and Girls Clubs, $300,000 is for outreach and supportive services through Day One, $1,950,000 is
for food collection and distribution through the Rhode Island Community Food Bank of which

$250,000 will be utilized to provide sub awards to other community food organizations, $500,000
for services provided to the homeless at Crossroads Rhode Island, $600,000 for the Community
Action Fund, $250,000 is for the Institute for the Study and Practice of Nonviolence’s Reduction
Strategy, $200,000 to provide operational support to the United Way’s 211 system, $150,000 is to
support services provided to the immigrant and refugee population through Higher Ground
International, $50,000 is for services provided to refugees through the Refugee Dream Center,
$150,000 for the Substance Use and Mental Health Leadership Council of RI, $25,000 for services
provided by Oasis International, and $25,000 for services provided by New Bridges for Haitian
Success
Federal Funds 8,020,512
Of this amount, $3.0 million is to sustain Early Head Start and Head Start programs.
Restricted Receipts 470,000
Total - Central Management 16,275,043
Child Support Enforcement
General Revenues 4,586,917
Federal Funds 9,060,380
Restricted Receipts 4,107,870
Total - Child Support Enforcement 17,755,167
Individual and Family Support
General Revenues 45,895,483
Federal Funds 118,670,234
Restricted Receipts 100,000
Other Funds
Rhode Island Capital Plan Funds
Blind Vending Facilities 165,000
Total - Individual and Family Support 164,830,717
Office of Veterans Services
General Revenues 37,094,041
Of this amount, $200,000 is to provide support services through veterans’ organizations,
$50,000 is to support Operation Stand Down, and $100,000 is to support the Veterans Services
Officers (VSO) program through the Veterans of Foreign Wars.
Federal Funds 15,980,199
Restricted Receipts 1,410,115
Other Funds

Rhode Island Capital Plan Funds Veterans Home Asset Protection	977,240
3 Veterans Memorial Cemetery Asset Protection	260,000
4 Total - Office of Veterans Services	55,721,595
5 Health Care Eligibility
6 General Revenues	12,476,503
7 Federal Funds	18,943,937
8 Total - Health Care Eligibility	31,420,440
9 Supplemental Security Income Program
10 General Revenues	16,569,000
11 Rhode Island Works
12 General Revenues	9,784,221
13 Federal Funds	109,507,861
14 Total - Rhode Island Works	119,292,082
15 Other Programs
16 General Revenues	2,452,648
17 Federal Funds	338,010,465
18 Restricted Receipts	8,000
19 Total - Other Programs	340,471,113
20 Office of Healthy Aging
21 General Revenues	15,147,684
22 Of this amount, $325,000 is to provide elder	services, including respite, through the

Diocese of Providence; $40,000 is for ombudsman services provided by the Alliance for Long
Term Care in accordance with chapter 66.7 of title 42; and $1,800,000 is for Senior Services
Support and $730,000 is for elderly nutrition, of which $680,000 is for Meals on Wheels.
Federal Funds 17,698,161
Restricted Receipt 266,979
Other Funds
Intermodal Surface Transportation Fund 4,651,722
The Office shall reimburse the Rhode Island public transit authority for the elderly/disabled
transportation program expenses no later than fifteen (15) days of the authority’s submission of a
request for payment.
Total - Office of Healthy Aging 37,764,546
Grand Total - Human Services 800,099,703

1 Behavioral Healthcare, Developmental Disabilities and Hospitals
2 Central Management
3 General Revenues	10,757,305
4 Federal Funds	1,858,106
5 Restricted Receipts	1,836,349
6 Other Funds
7 Rhode Island Capital Plan Funds
8 Group Home Maintenance	5,000,000
9 Total - Central Management	19,451,760
10 Services for the Developmentally Disabled
11 General Revenues	232,730,377
12 Federal Funds	307,121,997
13 Restricted Receipts	1,300,866
14 Other Funds
15 Rhode Island Capital Plan Funds
16 DD Residential Support	100,000
17 Total - Services for the Developmentally Disabled	541,253,240
18 Behavioral Healthcare Services
19 General Revenues	6,415,175
20 Federal Funds
21 Federal Funds	26,980,137
22 Provided that $250,000 from Social Services Block Grant	funds is awarded to The
23 Providence Center to coordinate with Oasis Wellness and Recovery	Center for its support and
24 services program offered to individuals with behavioral health issues.
25 Restricted Receipts	4,180,094

Provided that $500,000 from the opioid stewardship fund is distributed equally to the seven
regional substance abuse prevention task forces to fund priorities determined by each task force.

28 Total - Behavioral Healthcare Services	37,575,406
29 Hospital and Community Rehabilitative Services
30 General Revenues	49,312,542
31 Federal Funds	67,868,247
32 Restricted Receipts	4,817,874
33 Other Funds
34 Rhode Island Capital Plan Funds

1 Hospital Equipment	300,000
2 Total - Hospital and Community Rehabilitative Services	122,298,663
3 State of RI Psychiatric Hospital
4 General Revenues	34,884,686
5 Restricted Receipts	144,000
6 Other Funds
7 Rhode Island Capital Plan Funds
8 RISPH Equipment	100,000
9 Total - State of RI Psychiatric Hospital	35,128,686
10 Grand Total - Behavioral Healthcare,
11 Developmental Disabilities and Hospitals	755,707,755
12 Office of the Child Advocate
13 General Revenues	2,405,487
14 Commission on the Deaf and Hard of Hearing
15 General Revenues	835,904
16 Restricted Receipts	118,177
17 Grand Total - Comm. On Deaf and Hard-of-Hearing	954,081
18 Governor’s Commission on Disabilities
19 General Revenues
20 General Revenues	907,021
21 Livable Home Modification Grant Program	515,278

Provided that this will be used for home modification and accessibility enhancements to
construct, retrofit, and/or renovate residences to allow individuals to remain in community settings.
This will be in consultation with the executive office of health and human services. All unexpended

or unencumbered balances, at the end of the fiscal year, shall be reappropriated to the ensuing fiscal

26 year, and made immediately available for the same purpose.
27 Federal Funds	340,092
28 Restricted Receipts	67,190
29 Grand Total - Governor’s Commission on Disabilities	1,829,581
30 Office of the Mental Health Advocate
31 General Revenues	1,111,709
32 Elementary and Secondary Education
33 Administration of the Comprehensive Education Strategy
34 General Revenues	36,620,345

Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s
Hospital pursuant to § 16-7-20; $395,000 be allocated to support child opportunity zones through
agreements with the department of elementary and secondary education to strengthen education,
health and social services for students and their families as a strategy to accelerate student
achievement; $450,000 and 3.0 full-time equivalent positions be allocated to support a special
education function to facilitate individualized education program (IEP) and 504 services; and
further provided that $130,000 be allocated to City Year for the Whole School Whole Child
Program, which provides individualized support to at-risk students.
Provided further that $2,000,000 shall be allocated for the Learn365RI program, of which
$100,000 shall be allocated to the Rhode Island Afterschool Network; $100,000 shall be allocated
to Teach for America Ignite; and $100,000 shall be allocated to Onward We Learn.
Provided further that $684,000 shall be allocated to the Paul V. Sherlock Center on
Disabilities to support the Rhode Island Vision Education and Services Program.
Federal Funds
Federal Funds 258,048,406
Restricted Receipts
Restricted Receipts 1,839,203
HRIC Adult Education Grants 3,500,000
Other Funds
Rhode Island Capital Plan Funds
Norwell Academy Facility Feasibility Study 150,000
Total - Admin. of the Comprehensive Ed. Strategy 300,157,954
Davies Career and Technical School
General Revenues 21,082,757
Federal Funds 954,525
Restricted Receipts 4,932,231
Other Funds
Rhode Island Capital Plan Funds
Davies School HVAC 100,000
Davies School Asset Protection 750,000
Davies School Wing Renovation 23,500,000
Total - Davies Career and Technical School 51,319,513
RI School for the Deaf

General Revenues 9,039,339

1 Federal Funds	225,365
2 Restricted Receipts	1,597,000
3 Other Funds
4 Rhode Island Capital Plan Funds
5 School for the Deaf Asset Protection	968,691
6 Total - RI School for the Deaf	11,830,395
7 Metropolitan Career and Technical School
8 General Revenues	14,669,329
9 Other Funds
10 Rhode Island Capital Plan Funds
11 MET School Asset Protection	250,000
12 Total - Metropolitan Career and Technical School	14,919,329
13 Education Aid
14 General Revenues	1,292,587,560

Provided that the criteria for the allocation of early childhood funds shall prioritize pre-
kindergarten seats and classrooms for four-year-olds whose family income is at or below one
hundred eighty-five percent (185%) of federal poverty guidelines and who reside in communities

18 with higher concentrations of low performing schools.
19 Restricted Receipts	49,781,920
20 Total - Education Aid	1,342,369,480
21 Central Falls School District
22 General Revenues	53.683,500
23 School Construction Aid
24 General Revenues
25 School Housing Aid	102,869,291
26 Teachers' Retirement
27 General Revenues	130,236,201
28 Grand Total - Elementary and Secondary Education	2,007,385,663
29 Public Higher Education
30 Office of Postsecondary Commissioner
31 General Revenues	36,172,492

Provided that $455,000 shall be allocated to Onward We Learn pursuant to § 16-70-5,
$75,000 shall be allocated to Best Buddies Rhode Island to support its programs for children with
developmental and intellectual disabilities. It is also provided that $8,061,950 shall be allocated to

the Rhode Island promise scholarship program; $151,410 shall be used to support Rhode Island’s
membership in the New England Board of Higher Education; $7,062,826 shall be allocated to the
Rhode Island hope scholarship program; and $100,000 shall be allocated to the Rhode Island
School for Progressive Education to support access to higher education opportunities for teachers
of color.
Federal Funds

7 Federal Funds	5,377,602
8 Restricted Receipts
9 Restricted Receipts	8,358,299
10 Tuition Savings Program - Scholarships and Grants	3,460,000
11 Other Funds
12 Nursing Education Center - Operating	3,494,558
13 Rhode Island Capital Plan Funds
14 WEC Expansion - Annex Site	160,000
15 Total - Office of Postsecondary Commissioner	57,022,951
16 University of Rhode Island
17 General Revenues
18 General Revenues	119,473,120

Provided that in order to leverage federal funding and support economic development,
$700,000 shall be allocated to the small business development center, $125,000 shall be allocated
to the Institute for Labor Studies & Research, $50,000 shall be allocated to Special Olympics Rhode
Island to support its mission of providing athletic opportunities for individuals with intellectual and

developmental disabilities.

24 Debt Service	32,853,856
25 RI State Forensics Laboratory	2,436,958
26 Other Funds
27 University and College Funds	860,035,628
28 Debt - Dining Services	744,557
29 Debt - Education and General	7,824,231
30 Debt - Health Services	6,148
31 Debt - Housing Loan Funds	14,186,125
32 Debt - Memorial Union	291,069
33 Debt - Ryan Center	2,363,789
34 Debt - Parking Authority	1,408,483

URI Restricted Debt Service - Energy Conservation 369,780
URI Debt Service - Energy Conservation 1,349,620
Rhode Island Capital Plan Funds
Asset Protection 15,236,863
Mechanical, Electric, and Plumbing Improvements 6,217,170
Fire Protection Academic Buildings 1,323,475
Bay Campus 16,853,278
Athletics Complex 21,361,818
Provided that total Rhode Island capital plan funds provide no more than 80.0 percent of
the total project.
Stormwater Management 1,437,519
PFAS Removal Water Treatment Plant 11,661,319
Campus Accessibility 1,700,000
Campus Access Control 1,575,000
Building Envelope Improvements 3,000,000
Total - University of Rhode Island 1,123,709,806
Notwithstanding the provisions of § 35-3-15, all unexpended or unencumbered balances as
of June 30, 2027 relating to the university of Rhode Island are hereby reappropriated to fiscal year
2028.
Rhode Island College
General Revenues
General Revenues 72,723,265
Debt Service 9,159,563
Rhode Island Vision Education and Services Program 1,800,000
Other Funds
University and College Funds 135,027,602
Debt - Education and General 715,825
Debt - Student Union 212,025
Debt - Energy Conservation 785,625
Rhode Island Capital Plan Funds
Asset Protection 6,500,000
Infrastructure Modernization 5,675,000
Total - Rhode Island College 232,598,905
Notwithstanding the provisions of § 35-3-15, all unexpended or unencumbered balances as
1. of June 30, 2027, relating to Rhode Island college are hereby reappropriated to fiscal year 2028.
2. Community College of Rhode Island
3. General Revenues

4 General Revenues	65,696,149
5 Debt Service	934,564
6 Restricted Receipts	998,534
7 Other Funds
8 University and College Funds	127,734,928
9 Rhode Island Capital Plan Funds
10 Asset Protection	3,369,452
11 Data, Cabling, and Power Infrastructure	5,500,000
12 Flanagan Campus Renovations	3,600,605
13 CCRI Renovation and Modernization Phase I	13,499,928
14 CCRI Renovation and Modernization Phase II - IV	2,240,000
15 CCRI Accessibility Improvements	125,000
16 Total - Community College of RI	223,699,060

Notwithstanding the provisions of § 35-3-15, all unexpended or unencumbered balances as
of June 30, 2027, relating to the community college of Rhode Island are hereby reappropriated to
fiscal year 2028.
Grand Total - Public Higher Education 1,637,030,722
RI State Council on the Arts
General Revenues
Operating Support 1,370,565
Grants 1,240,000
Provided that $400,000 be provided to support the operational costs of WaterFire
Providence art installations.
Federal Funds 1,160,576

Other Funds

29 Art for Public Facilities	742,000
30 Grand Total - RI State Council on the Arts	4,513,141
31 RI Atomic Energy Commission
32 General Revenues	1,316,004
33 Restricted Receipts	25,036
34 Other Funds

URI Sponsored Research 335,818
Rhode Island Capital Plan Funds
Asset Protection 50,000
Grand Total - RI Atomic Energy Commission 1,726,858
RI Historical Preservation and Heritage Commission
General Revenues 2,097,428
Provided that $30,000 support the operational costs of the Fort Adams Trust’s restoration
activities and that $25,000 shall be allocated to Rhode Island Slave History Medallions.
Federal Funds 893,987
Restricted Receipts 511,827
Other Funds
RIDOT Project Review 148,449
Grand Total - RI Historical Preservation and Heritage Comm. 3,651,691
Attorney General
Criminal
General Revenues 24,153,594
Federal Funds 3,089,426
Restricted Receipts 1,821,874
Total - Criminal 29,064,894
Civil
General Revenues 6,672,679
Federal Funds 132,429

Restricted Receipts 4,939,129

24 Total - Civil 11,744,237

Bureau of Criminal Identification
General Revenues 2,563,440
Restricted Receipts 1,344,780
Total - Bureau of Criminal Identification 3,908,220
General
General Revenues 5,979,584
Other Funds
Rhode Island Capital Plan Funds
Building Renovations and Repairs 1,150,000
Total - General 7,129,584

1 Grand Total - Attorney General	51,846,935
2 Corrections
3 Central Management
4 General Revenues	27,233,892
5 Parole Board
6 General Revenues	1,668,186
7 Custody and Security
8 General Revenues	187,294,597
9 Federal Funds	2,267,867
10 Other Funds
11 Rhode Island Capital Plan Funds
12 Intake Service Center HVAC	5,476,281
13 Total - Custody and Security	195,038,745
14 Institutional Support
15 General Revenues	39,460,059
16 Other Funds
17 Rhode Island Capital Plan Funds
18 Asset Protection	6,200,000
19 Total - Institutional Support	45,660,059
20 Institutional Based Rehab/Population Management
21 General Revenues	15,076,622
22 Provided that $1,050,000 be allocated to	Crossroads Rhode Island for sex offender
23 discharge planning.

The director of the department of corrections shall provide to the speaker of the house and
president of the senate at least every ninety (90) days beginning September 1, 2022, a report on
efforts to modernize the correctional industries program. The report shall, at minimum, provide
data on the past ninety (90) days regarding program participation; changes made in programming
to more closely align with industry needs; new or terminated partnerships with employers,
nonprofits, and advocacy groups; current program expenses and revenues; and the employment
status of all persons on the day of discharge from department care who participated in the
correctional industries program.
Federal Funds 449,585
Restricted Receipts 1,250,000

Total - Institutional Based Rehab/Population Mgt. 16,776,207

1 Healthcare Services
2 General Revenues	40,978,629
3 Community Corrections
4 General Revenues	23,317,069
5 Restricted Receipts	3,091
6 Total - Community Corrections	23,320,160
7 Grand Total - Corrections	350,675,878
8 Judiciary
9 Supreme Court
10 General Revenues
11 General Revenues	40,098,334

Provided however, that no more than $1,393,545 in combined total shall be offset to the
public defender’s office, the attorney general’s office, the department of corrections, the department
of children, youth and families, and the department of public safety for square-footage occupancy
costs in public courthouses and further provided that $500,000 be allocated to the Rhode Island
Coalition Against Domestic Violence for the domestic abuse court advocacy project pursuant to §
12-29-7 and that $90,000 be allocated to Rhode Island Legal Services, Inc. to provide housing and

18 eviction defense to indigent individuals.
19 Defense of Indigents	7,875,432
20 Federal Funds	133,368
21 Restricted Receipts	4,296,657
22 Other Funds
23 Rhode Island Capital Plan Funds
24 Judicial Complexes - HVAC	500,000
25 Judicial Complexes Asset Protection	1,500,000
26 Judicial Complexes Fan Coil Unit Replacements	750,000
27 Garrahy Courthouse Restoration	1,125,000
28 Total - Supreme Court	56,278,791
29 Judicial Tenure and Discipline
30 General Revenues	190,901
31 Superior Court
32 General Revenues	31,068,969
33 Restricted Receipts	325,000
34 Total - Superior Court	31,393,969

1 Family Court
2 General Revenues	29,964,439
3 Federal Funds	5,061,224
4 Total - Family Court	35,025,663
5 District Court
6 General Revenues	18,246,180
7 Federal Funds	223,404
8 Restricted Receipts	60,000
9 Total - District Court	18,529,584
10 Traffic Tribunal
11 General Revenues	12,022,509
12 Workers' Compensation Court
13 Restricted Receipts	12,073,439
14 Grand Total - Judiciary	165,514,856
15 Military Staff
16 General Revenues	3,634,593
17 Federal Funds	45,498,537
18 Restricted Receipts
19 RI Military Family Relief Fund	55,000
20 RING Counterdrug Program	11,000
21 Other Funds
22 Rhode Island Capital Plan Funds
23 Aviation Readiness Center	7,603,990
24 Asset Protection	1,592,912
25 Grand Total - Military Staff	58,396,032
26 Public Safety
27 Central Management
28 General Revenues	2,498,706

Provided that $400,000 shall be allocated to support the Family Service of Rhode Island’s
GO Team program of on-scene support to children who are victims of violence and other traumas.
Federal Funds
Federal Funds 9,707,021
Federal Funds – State Fiscal Recovery Fund
Support for Survivors of Domestic Violence 64,786

1 Restricted Receipts	849,625
2 Total - Central Management	13,120,138
3 E-911 Emergency Telephone System
4 Restricted Receipts	10,527,015
5 Security Services
6 General Revenues	34,657,887
7 Municipal Police Training Academy
8 General Revenues	343,234

Provided that of this amount $75,000 shall be for administrative, information technology,
and operating expenses incurred by the Rhode Island Police Officers Commission on Standards

	191,992
13 Restricted Receipts	75,000
14 Total - Municipal Police Training Academy	610,226
15 State Police
16 General Revenues	99,217,318
17 Federal Funds	6,159,398
18 Restricted Receipts	3,336,961
19 Other Funds
20 Airport Corporation Assistance	150,283
21 Road Construction Reimbursement	4,355,100
22 Weight and Measurement Reimbursement	647,705
23 Rhode Island Capital Plan Funds
24 DPS Asset Protection	1,345,000
25 Training Academy Upgrades	670,000
26 Total - State Police	115,881,765
27 Grand Total - Public Safety	174,797,031
28 Office of Public Defender
29 General Revenues	18,765,889
30 Federal Funds	85,035
31 Grand Total - Office of Public Defender	18,850,924
32 Emergency Management Agency
33 General Revenues	8,375,436
34 Federal Funds	51,235,300

and Training (POST).
Federal Funds

1 Restricted Receipts	417,066
2 Other Funds
3 Rhode Island Capital Plan Funds
4 RI Statewide Communications Infrastructure	330,000
5 Mobile Command Post	3,218,908
6 Grand Total - Emergency Management Agency	63,576,710
7 Environmental Management
8 Office of the Director
9 General Revenues	10,509,829

Of this general revenue amount, $180,000 is appropriated to the conservation districts and
$100,000 is appropriated to the Wildlife Rehabilitators Association of Rhode Island for a
veterinarian at the Wildlife Clinic of Rhode Island.
Federal Funds 376,495

Restricted Receipts 7,343,683

15 Total - Office of the Director	18,230,007
16 Natural Resources
17 General Revenues	32,814,994
18 Provided that of this general revenue amount, $150,000 is to be used for marine mammal
19 response activities in conjunction with matching federal funds.
20 Federal Funds	37,410,677
21 Restricted Receipts	6,962,400
22 Other Funds
23 DOT Recreational Projects	789,122
24 Blackstone Bike Path Design	1,000,000
25 Rhode Island Capital Plan Funds
26 Dam Repair	5,593,450
27 Fort Adams Rehabilitation	500,000
28 Port of Galilee	10,693,637
29 Newport Pier Upgrades	500,000
30 Recreation Facilities Asset Protection	750,000
31 Recreational Facilities Improvements	4,586,260
32 Natural Resources Office and Visitor's Center	1,586,709
33 Fish & Wildlife Maintenance Facilities	200,000
34 Marine Infrastructure/Pier Development	500,000

1 Total - Natural Resources	103,887,249
2 Environmental Protection
3 General Revenues	17,290,819
4 Federal Funds	13,416,965
5 Restricted Receipts	12,981,563
6 Other Funds
7 Transportation MOU	61,877
8 Total - Environmental Protection	43,751,224
9 Grand Total - Environmental Management	165,868,480
10 Coastal Resources Management Council
11 General Revenues	4,324,771
12 Federal Funds	3,151,314
13 Restricted Receipts	335,811
14 Other Funds
15 Rhode Island Capital Plan Funds
16 Confined Aquatic Dredged Material Disposal Cells	11,380,000
17 Grand Total - Coastal Resources Mgmt. Council	19,191,896
18 Transportation
19 Central Management
20 Federal Funds	13,891,263
21 Other Funds
22 Gasoline Tax	8,591,864
23 Total - Central Management	22,483,127
24 Management and Budget
25 Other Funds
26 Gasoline Tax	5,768,852
27 Infrastructure Engineering
28 Federal Funds
29 Federal Funds	765,215,089
30 Federal Funds – State Fiscal Recovery Fund
31 Washington Bridge Project	74,583
32 Restricted Receipts	4,459,559
33 Other Funds
34 Gasoline Tax	78,204,432

Provided that of this amount, $10,000,000 is appropriated to the Municipal Roads Grant
Program known as RhodeRestore to provide funding to municipalities for the construction and
maintenance of roads, sidewalks, and bridges. Provided that twenty-five percent (25%) of the funds
shall be distributed equally to each city and town, and seventy-five percent (75%) shall be allocated
proportionally based on each municipality’s share of municipally maintained road miles, as
determined by the most recent data available from the Rhode Island department of transportation.
Provided further that each municipality is required to provide a sixty-seven percent (67%) match.
Provided further that, at the discretion of the department, a portion of these funds may be used for
state sidewalk projects identified by the municipality and prioritized in collaboration with the
department, subject to a matching requirement to be established by the department.
Provided further that of this amount, sufficient funds from the Rhode Island public transit
authority’s share of gasoline tax proceeds shall be allocated to the state paratransit program,
including the expansion pilot program known as ride anywhere to ensure statewide paratransit
services are maintained.
Land Sale Revenue 6,113,850
Tolling Revenue 20,000,000
Rhode Island Capital Plan Funds
Highway Improvement Program 46,250,000
RIPTA - Kingston Station Mobility Hub 840,000
RIPTA - Pawtucket Bus Hub 63,428
RIPTA - Bus Purchases 3,500,000
Bike Path Asset Protection 400,000
RIPTA - Land and Buildings 1,590,125
Total - Infrastructure Engineering 926,711,066
Infrastructure Maintenance
Other Funds
Gasoline Tax 44,201,784
The department of transportation will establish a municipal roadway database, which will
include information concerning the name, condition, length, roadway infrastructure, and pedestrian
features of each municipal roadway, updated annually by municipalities. The database will serve
as a comprehensive and transparent list of municipal roadway conditions.
Rhode Island Highway Maintenance Account 128,239,518
Rhode Island Capital Plan Funds
Maintenance Capital Equipment Replacement 1,800,000

Maintenance Facilities Improvements 500,000
Welcome Center 150,000
Salt Storage Facilities 1,150,000
Train Station Asset Protection 3,750,000
Total - Infrastructure Maintenance 179,791,302
Grand Total - Transportation 1,134,754,347
Statewide Totals
General Revenues 5,954,722,537
Federal Funds 5,506,004,485
Restricted Receipts 459,831,598
Other Funds 2,938,464,040
Statewide Grand Total 14,859,022,660
SECTION 2. Each line appearing in section 1 of this article shall constitute an
appropriation.
SECTION 3. Upon the transfer of any function of a department or agency to another
department or agency, the governor is hereby authorized by means of executive order to transfer or
reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected
thereby; provided, however, in accordance with § 42-6-5, when the duties or administrative
functions of government are designated by law to be performed within a particular department or
agency, no transfer of duties or functions and no re-allocation, in whole or part, or appropriations
and full-time equivalent positions to any other department or agency shall be authorized.
SECTION 4. From the appropriation for contingency shall be paid such sums as may be
required at the discretion of the governor to fund expenditures for which appropriations may not
exist. Such contingency funds may also be used for expenditures in the several departments and
agencies where appropriations are insufficient, or where such requirements are due to unforeseen
conditions or are non-recurring items of an unusual nature. Said appropriations may also be used
for the payment of bills incurred due to emergencies or to any offense against public peace and
property, in accordance with the provisions of titles 11 and 45, as amended. All expenditures and
transfers from this account shall be approved by the governor.
SECTION 5. The general assembly authorizes the state controller to establish the internal
service accounts shown below, and no other, to finance and account for the operations of state
agencies that provide services to other agencies, institutions and other governmental units on a cost
reimbursed basis. The purpose of these accounts is to ensure that certain activities are managed in
a businesslike manner; promote efficient use of services by making agencies pay the full costs

associated with providing the services; and allocate the costs of central administrative services
across all fund types, so that federal and other non-general fund programs share in the costs of
general government support. The controller is authorized to reimburse these accounts for the cost
of work or services performed for any other department or agency subject to the following
expenditure limitations:
Account Expenditure Limit
Accounts and Control Internal Service Fund 17,696,064
State Assessed Fringe Benefit Internal Service Fund 37,347,585
Administration Central Utilities Internal Service Fund 30,366,642
State Central Mail Internal Service Fund 9,226,608
State Telecommunications Internal Service Fund 3,489,512
State Automotive Fleet Internal Service Fund 21,689,836
Surplus Property Internal Service Fund 44,789
Health Insurance Internal Service Fund 377,363,571
Other Post-Employment Benefits Fund 41,748,856
Capitol Police Internal Service Fund 1,894,861
Corrections Central Distribution Center Internal Service Fund 8,819,385
Correctional Industries Internal Service Fund 8,587,104
Secretary of State Record Center Internal Service Fund 1,167,703
Human Resources Internal Service Fund 14,804,445
DCAMM Facilities Internal Service Fund 41,508,177
Information Technology Internal Service Fund 64,137,258
SECTION 6. The director of the department of administration shall exercise his powers
under chapter 11 of title 42 to centralize state fleet operations under the department as it relates to
light and medium duty vehicle management, in accordance with best practices.
SECTION 7. Legislative Intent - The general assembly may provide a written "statement
of legislative intent" signed by the chairperson of the house finance committee and by the
chairperson of the senate finance committee to show the intended purpose of the appropriations
contained in section 1 of this article. The statement of legislative intent shall be kept on file in the
house finance committee and in the senate finance committee.
At least twenty (20) days prior to the issuance of a grant or the release of funds, which
grant or funds are listed on the legislative letter of intent, all department, agency, and corporation
directors shall notify in writing the chairperson of the house finance committee and the chairperson
of the senate finance committee of the approximate date when the funds are to be released or

granted.
SECTION 8. Appropriation of Temporary Disability Insurance Funds -- There is hereby
appropriated pursuant to §§ 28-39-5 and 28-39-8 all funds required to be disbursed for the benefit
payments from the temporary disability insurance fund and temporary disability insurance reserve
fund for the fiscal year ending June 30, 2027.
SECTION 9. Appropriation of Employment Security Funds -- There is hereby appropriated
pursuant to § 28-42-19 all funds required to be disbursed for benefit payments from the employment
security fund for the fiscal year ending June 30, 2027.
SECTION 10. Appropriation of Lottery Division Funds -- There is hereby appropriated to
the lottery division any funds required to be disbursed by the lottery division for the purposes of
paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2027.
SECTION 11. Appropriation of CollegeBoundSaver Funds - There is hereby appropriated
to the office of the general treasurer designated funds received under the collegeboundsaver
program for transfer to the division of higher education assistance within the office of the
postsecondary commissioner to support student financial aid for the fiscal year ending June 30,
2027.
SECTION 12. Departments and agencies listed below may not exceed the number of full-
time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do
not include limited period positions or, seasonal or intermittent positions whose scheduled period
of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not
exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period. Nor
do they include individuals engaged in training, the completion of which is a prerequisite of
employment. Provided, however, that the governor or designee, speaker of the house of
representatives or designee, and the president of the senate or designee may authorize an adjustment
to any limitation. Prior to the authorization, the state budget officer shall make a detailed written
recommendation to the governor, the speaker of the house, and the president of the senate. A copy
of the recommendation and authorization to adjust shall be transmitted to the chairman of the house
finance committee, senate finance committee, the house fiscal advisor, and the senate fiscal advisor.
State employees whose funding is from non-state general revenue funds that are time
limited shall receive limited term appointment with the term limited to the availability of non-state
general revenue funding source.
FY 2027 FTE POSITION AUTHORIZATION
Departments and Agencies Full-Time Equivalent
Administration 682.6

Provided that no more than 467.1 of the total authorization would be limited to positions
that support internal service fund programs.

3 Office of Energy Resources	21.0
4 Business Regulation	157.0
5 Rhode Island Cannabis Control Commission	28.0
6 Executive Office of Commerce	5.0
7 Housing	38.0
8 Labor and Training	461.7
9 Revenue	605.5
10 Legislature	298.5
11 Office of the Lieutenant Governor	8.0
12 Office of the Secretary of State	62.0
13 Office of the General Treasurer	93.0
14 Board of Elections	13.0
15 Rhode Island Ethics Commission	12.0
16 Office of the Governor	45.0
17 Commission for Human Rights	15.0
18 Public Utilities Commission	57.0
19 Executive Office of Health and Human Services	252.0
20 Children, Youth and Families	719.5
21 Health	572.6
22 Human Services	804.0
23 Office of Veterans Services	291.0
24 Office of Healthy Aging	33.0
25 Behavioral Healthcare, Developmental Disabilities and Hospitals	1,223.4

Provided that 18.0 of the total authorization would be limited to independent facilitators
positions to comply with the Consent Decree Addendum.
Office of the Child Advocate 13.0
Commission on the Deaf and Hard of Hearing 4.0
Governor’s Commission on Disabilities 5.0
Office of the Mental Health Advocate 6.0
Elementary and Secondary Education 157.1
Provided that 3.0 of the total authorization would be available only for positions that are
supported by the healthy environments advance learning grant at the school building authority.

School for the Deaf 61.0
Davies Career and Technical School 125.0
Office of Postsecondary Commissioner 48.0
Provided that 1.0 of the total authorization would be available only for positions that are
supported by third-party funds, 12.0 would be available only for positions at the state’s higher
education centers located in Woonsocket and Westerly, 10.0 would be available only for positions
at the nursing education center, and 9.0 would be available for the longitudinal data systems
program.
Rhode Island College 949.2
Provided that 76.0 of the total authorization would be available only for positions that are
supported by third-party funds.
Community College of Rhode Island 849.1
Provided that 89.0 of the total authorization would be available only for positions that are
supported by third-party funds.
Rhode Island State Council on the Arts 10.0
RI Atomic Energy Commission 8.6
Historical Preservation and Heritage Commission 15.6
Office of the Attorney General 268.1
Corrections 1,461.0
Judicial 749.3
Military Staff 93.0
Emergency Management Agency 38.0
Public Safety 638.0
Office of the Public Defender 105.0
Environmental Management 440.0
Coastal Resources Management Council 32.0
Transportation 757.0
Total 13,330.8
Effective retroactively to July 1, 2025, the University of Rhode Island shall be exempt from
any limitations imposed on full-time equivalent (FTE) positions.
No agency or department may employ contracted employee services where contract
employees would work under state employee supervisors without determination of need by the
director of administration acting upon positive recommendations by the budget officer and the
personnel administrator and fifteen (15) days after a public hearing.
1. Nor may any agency or department contract for services replacing work done by state
2. employees at that time without determination of need by the director of administration acting upon
3. the positive recommendations of the state budget officer and the personnel administrator and thirty
4. (30) days after a public hearing.
5. SECTION 13. The amounts reflected in this article include the appropriation of Rhode
6. Island capital plan funds for fiscal year 2027 and supersede appropriations provided for FY 2027
7. within Pub. L. 2025, ch. 278, art. 1, § 13.
8. The following amounts are hereby appropriated out of any money in the State’s Rhode
9. Island capital plan fund not otherwise appropriated to be expended during the fiscal years ending

10 June 30, 2028, June 30, 2029, June 30, 2030, and June 30, 2031. These amounts supersede

appropriations provided within Pub. L. 2025, ch. 278, art. 1, § 13.
For the purposes and functions hereinafter mentioned, the state controller is hereby
authorized and directed to draw the controller's orders upon the general treasurer for the payment
of such sums and such portions thereof as may be required by the controller upon receipt of properly
authenticated vouchers.
FY Ending FY Ending FY Ending FY Ending

17	Project	06/30/2028	06/30/2029	06/30/2030 06/30/2031
18 DOA – 560 Jefferson Blvd Asset Protection		50,000	50,000	50,000	50,000
19 DOA – Arrigan Center		100,000	100,000	100,000	100,000
20 DOA – Big River Management Area		742,000	792,000	787,000	787,000
21 DOA – Cannon Building		4,225,000	4,225,000	1,750,000	1,200,000
22 DOA – Civic Center		1,075,000	1,500,000	1,475,000	1,500,000
23 DOA – Communities Facilities Asset Protection		125,000	125,000	125,000	125,000
24 DOA – Cranston Street Armory		100,000	100,000	100,000	100,000
25 DOA - DoIT Enterprise Operations Center		2,200,000	200,000	200,000	200,000
26 DOA – Environmental Compliance		225,000	225,000	225,000	225,000
27 DOA - Medical Examiner's Office		50,000	50,000	50,000	50,000
28 DOA – Old State House		100,000	100,000	100,000	100,000
29 DOA - Pastore Campus Infrastructure		20,000,000	20,000,000	20,000,000	20,000,000
30 DOA – Pastore Hospital Buildings
31 Asset Protection		8,250,000	500,000	500,000	500,000
32 DOA - Pastore Center Non-Hospital Buildings
33 Asset Protection		5.250,000	5,250,000	5,250,000	8,950,000
34 DOA - Replacement of Fueling Tanks		430,000	620,000	100,000	100,000

1 DOA - RI Convention Center Authority 2,500,000	2,000,000	2,000,000	2,500,000
2 DOA – Shepard Building Upgrades 5,325,000	3,135,000	2,250,000	2,250,000
3 DOA – Security Measures State Buildings 850,000	650,000	650,000	650,000
4 DOA - State House Renovations 36,159,000	35,029,000	8,309,000	4,309,000
5 DOA – State Office Building 300,000	50,000	50,000	50,000
6 DOA – State Office Reorganization &
7 Relocation 750,000	750,000	750,000	750,000
8 DOA – Veterans Auditorium 150,000	150,000	150,000	200,000
9 DOA – Washington County Government Center 200,000	200,000	200,000	200,000
10 DOA - William Powers Building 3,850,000	1,700,000	200,000	200,000
11 DOA - Zambarano Buildings and Campus 500,000	500,000	500,000	500,000
12 DOA – Zambarano LTAC Hospital 24,427,656	24,155,740	26,065,740	21,804,439
13 Housing – Asset Protection 200,000	340,000	190,000	190,000
14 OER – Energy Efficiency 1,000,000	1,000,000	1,000,000	1,000,000
15 DBR – OFSM Evidence Room 0	0	0	2,500,000
16 EOC – I-195 Redevelopment Commission 400,000	0	0	0
17 SOS – Rhode Island Archives and History
18 Center 4,500,000	0	0	0
19 DCYF – Training School Asset Protection 250,000	250,000	250,000	250,000
20 DOH – Health Laboratories & Medical
21 Examiner Equipment 400,000	400,000	400,000	400,000
22 DHS – Blind Vending Facilities 165,000	165,000	165,000	165,000
23 DHS – Veterans Memorial Cemetery
24 Asset Protection 480,000	510,000	1,150,000	1,450,000
25 DHS – Veterans Home Asset Protection 700,000	800,000	1,025,000	1,025,000
26 BHDDH – DD Residential Support 100,000	100,000	100,000	100,000
27 BHDDH – Group Home Maintenance 5,500,000	6,000,000	6,500,000	7,000,000
28 BHDDH – Hospital Equipment Asset Protection 300,000	300,000	300,000	300,000
29 BHDDH – RISPH Equipment 100,000	100,000	100,000	100,000
30 ELSEC – Davies School Asset Protection 750,000	750,000	750,000	750,000
31 ELSEC – Davies School HVAC 100,000	100,000	100,000	100,000
32 ELSEC - Davies School Wing Renovation 16,574,194	0	0	0
33 ELSEC – School for the Deaf Asset Protection 418,200	1,120,178	725,500	225,000
34 ELSEC – MET School Asset Protection 275,000	275,000	275,000	275,000

1	URI - Asset Protection	15,528,074	15,885,220	16,250,580	16,738,097
2	URI – Academic Building Improvements	7,150,00	818,723	0	0
3	URI - Athletics Complex	982,053	0	0	0
4	URI – Building Envelope Improvements	3,000,000	3,000,000	3,000,000	3,000,000
5	URI – Campus Accessibility	1,000,000	1,000,000	1,000,000	1,000,000
6	RIC - Asset Protection	6,632,000	6,850,000	6,850,000	7,055,500
7	RIC - Infrastructure Modernization	5,925,000	5,925,000	6,061,275	6,243,113
8	CCRI - Asset Protection	2,780,000	2,870,000	2,936,010	3,024,090
9	CCRI - Accessibility Improvements	720,000	590,000	230,000	200,000
10	CCRI – Data, Cabling, and Power Infrastructure	4,500,000	3,700,000	3,365,980	0
11	CCRI – Flanagan Campus Renovations	2,500,000	584,000	0	0
12	CCRI – Renovation and Modernization Phase I	7,000,000	2,785,000	0	0
13	CCRI – Renovation and Modernization
14	Phase II	4,090,000	2,470,000	700,000	3,250,000
15	AEC – Asset Protection	50,00	50,000	50,000	55,000
16	OAG – Renovation and Asset Protection	900,000	150,000	150,000	150,000
17	DOC – Asset Protection	4,100,000	4,100,000	4,100,000	4,100,000
18	Judiciary – Judicial Complexes Asset Protection	1,500,000	1,500,000	1,550,000	1,550,000
19	Judiciary – Judicial Complexes HVAC	500,000	500,000	500,000	500,000
20	Judiciary – Judicial Complexes Fan Coil
21	Replacements	850,000	500,000	500,000	500,000
22	Judiciary – Licht Limestone Cleaning & Pointing1,300,000 1,339,0000			0	0
23	Judiciary – Licht Window and Masonry Repairs	1,500,000	1,545,000	0	0
24	Military Staff – Asset Protection	1,120,000	2,220,831	3,253,820	3,548,675
25	DPS – Asset Protection	1,250,000	725,000	725,000	725,000
26	DPS – Training Academy Upgrades	690,000	975,000	600,000	150,000
27	RIEMA – RISCON Tower	550,000	0	550,000	0
28	RIEMA – RISCON Infrastructure Upgrade	15,000	0	0	0
29	DEM – Dam Repair	7,456,500	5,619,739	1,826,341	1,015,000
30	DEM – Facilities Asset Protection	765,000	765,000	780,000	100,000
31	DEM – Fish and Wildlife Facilities	200,000	200,000	100,000	100,000
32	DEM – Fort Adams Rehabilitation	500,000	500,000	0	0
33	DEM – Natural Resources Offices and
34	Visitor's Center	600,000	100,000	100,000	100,000

1 DEM – Marine Infrastructure/Pier Development 500,000	500,000	500,000	0
2 DEM – Port of Galilee 5,375,00	6,600,000	8,800,000	5,146,499
3 DEM – Recreational Facilities Improvements 3,500,000	3,500,000	3,500,000	3,000,000
4 DOT - Highway Improvement Program 22,200,000	22,200,000	22,200,000	22,200,000
5 DOT – Bike Path Asset Protection 400,000	400,000	400,000	400,000
6 DOT – Maintenance Facility Improvements 1,375,000	500,000	500,000	800,000
7 DOT - Maintenance Capital Equipment
8 Replacement 1,800,000	1,800,000	1,800,000	1,800,000
9 DOT - Salt Storage Facilities 1,500,000	1,500,000	1,500,000	1,500,000
10 DOT – Train Station Asset Protection 2,600,000	1,000,000	0	0
11 DOT – Welcome Center 150,000	150,000	150,000	0
12 DOT – RIPTA – Bus Purchases 3,500,000	3,500,000	3,500,000	3,500,000
13 DOT – RIPTA - Land and Buildings 1,310,125	560,000	500,000	500,000

SECTION 14. Reappropriation of Funding for Rhode Island capital plan fund projects.
Any unexpended and unencumbered funds from Rhode Island capital plan fund project
appropriations shall be reappropriated in the ensuing fiscal year and made available for the same
purpose. However, any such reappropriations are subject to final approval by the general assembly
as part of the supplemental appropriations act. Any unexpended funds of less than five hundred
dollars ($500) shall be reappropriated at the discretion of the state budget officer.
SECTION 15. For the Fiscal Year ending June 30, 2027, the Rhode Island housing and
mortgage finance corporation shall provide from its resources such sums as appropriate in support
of the Neighborhood Opportunities Program. The corporation shall provide a report detailing the
amount of funding provided to this program, as well as information on the number of units of
housing provided as a result to the director of administration, the secretary of housing, the chair of
the house finance committee, the chair of the senate finance committee, and the state budget officer.
SECTION 16. Appropriation of Economic Activity Taxes in accordance with the city of
Pawtucket downtown redevelopment statute -- There is hereby appropriated for the fiscal year
ending June 30, 2027, all state economic activity taxes to be collected pursuant to § 45-33.4-4, as
amended (including, but not limited to, the amount of tax revenues certified by the commerce
corporation in accordance with § 45-33.4-1(13)), for the purposes of paying debt service on bonds,
funding debt service reserves; paying costs of infrastructure improvements in and around the
ballpark district, arts district, and the growth center district; funding future debt service on bonds;
and funding a redevelopment revolving fund established in accordance with § 45-33-1.
SECTION 17. The appropriations from federal funds contained in section 1 shall not be
1. construed to mean any federal funds or assistance appropriated, authorized, allocated or
2. apportioned to the State of Rhode Island from the state fiscal recovery fund and capital projects
3. fund enacted pursuant to the American Rescue Plan Act of 2021, P.L. 117-2 for fiscal year 2027
4. except for those instances specifically designated.
5. The State fiscal recovery fund and capital projects fund appropriations herein shall be made
6. in support of the following projects:
7. Federal Funds - State Fiscal Recovery Fund
8. Department of Administration (DOA)
9. DOA- Pandemic Recovery Office. These funds shall be allocated to finance the pandemic
10. recovery office established within the department of administration.
11. Department of Public Safety (DPS)
12. DPS – Support for Survivors of Domestic Violence. These funds shall be allocated to invest
13. in the nonprofit community to provide additional housing, clinical and mental health services to
14. victims of domestic violence and sexual assault. This includes increased investments for therapy
15. and counseling, housing assistance, job training, relocation aid and case management.
16. Department of Transportation (DOT)
17. DOT - Washington Bridge Project. These funds shall support the non-federal share or
18. matching requirement on federal funds for priority transportation projects, including but not limited
19. to the Washington Bridge project.
20. Federal Funds - Capital Projects Fund
21. Department of Administration (DOA)
22. DOA - CPF Administration. These funds shall be allocated to the department of
23. administration to oversee the implementation of the capital projects fund award from the American
24. Rescue Plan Act.
25. SECTION 18. Reappropriation of Funding for State Fiscal Recovery Fund and Capital
26. Projects Fund. Notwithstanding any provision of general law, any unexpended and unencumbered
27. federal funds from the state fiscal recovery fund and capital projects fund shall be reappropriated
28. in the ensuing fiscal year and made available for the same purposes. However, any such
29. reappropriations are subject to final approval by the general assembly as part of the supplemental
30. appropriations act.
31. SECTION 19. The pandemic recovery office shall monitor the progress and performance
32. of all programs financed by the state fiscal recovery fund and the capital projects fund. On or before
33. October 31, 2023 through April 30, 2025, the office shall provide a report to the speaker of the
34. house and senate president, with copies to the chairpersons of the house and senate finance

committees, on a quarterly basis and biannually thereafter until and including October 31, 2026,
identifying programs that are at risk of significant underspending or noncompliance with federal or
state requirements. The report, at a minimum must include an assessment of how programs that are
at risk can be remedied. In the event that any state fiscal recovery fund program underspends its
appropriation or receives program income as defined by U.S. Treasury and would put the state at
risk of forfeiture of federal funds, the governor may propose to reclassify unspent funds or program
income from the at-risk program to other eligible uses as determined by U.S. Treasury. This
proposal shall be referred to the general assembly. For a state fiscal recovery fund program, if the
amount of the underspend or receipt of program income is less than or equal to one million dollars
($1,000,000) and less than or equal to twenty percent (20%) of its total appropriation, the
governor’s proposed reclassification shall take effect immediately. For a state fiscal recovery fund
program, if the amount of the underspend or receipt of program income is greater than one million
dollars ($1,000,000) or greater than twenty percent (20%) of its total appropriation, the governor’s
proposed reclassification shall go into effect thirty (30) days after its referral to the general
assembly by the governor, unless rejected by formal action of the house and senate acting
concurrently within that time.
SECTION 20. This article shall take effect as of July 1, 2026, except as otherwise provided
herein.
1. ARTICLE 2
2. RELATING TO STATE FUNDS
3. SECTION 1. Effective retroactively to July 1, 2025, section 35-4-27 of the General Laws
4. in Chapter 35-4 entitled "State Funds” is hereby amended to read as follows:
5. 35-4-27. Indirect cost recoveries on restricted receipt accounts.
6. Indirect cost recoveries of fifteen percent (15%) of cash receipts shall be transferred from
7. all restricted receipt accounts, to be recorded as general revenues in the general fund. However,
8. there shall be no transfer from cash receipts with restrictions received exclusively: (1) From
9. contributions from nonprofit charitable organizations; (2) From the assessment of indirect cost-
10. recovery rates on federal grant funds; or (3) Through transfers from state agencies to the department
11. of administration for the payment of debt service. These indirect cost recoveries shall be applied to
12. all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The
13. following restricted receipt accounts shall not be subject to the provisions of this section:
14. Executive Office of Health and Human Services
15. HIV Care Grant Drug Rebates
16. Health System Transformation Project
17. Rhode Island Statewide Opioid Abatement Account
18. HCBS Support-ARPA
19. HCBS Admin Support-ARPA
20. Department of Human Services
21. Organ Transplant Fund
22. Veterans’ home — Restricted account
23. Veterans’ home — Resident benefits
24. Pharmaceutical Rebates Account
25. Demand Side Management Grants
26. Veteran’s Cemetery Memorial Fund
27. Donations — New Veterans’ Home Construction
28. Commodity Supplemental Food Program-Claims
29. Department of Health
30. Pandemic medications and equipment account
31. Miscellaneous Donations/Grants from Non-Profits
32. State Loan Repayment Match
33. Healthcare Information Technology
34. Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

Eleanor Slater non-Medicaid third-party payor account
Hospital Medicare Part D Receipts
RICLAS Group Home Operations
Group Home Facility Improvement Fund
Commission on the Deaf and Hard of Hearing
Emergency and public communication access account
Department of Environmental Management
National heritage revolving fund
Environmental response fund II
Underground storage tanks registration fees
De Coppet Estate Fund
Rhode Island Historical Preservation and Heritage Commission
Historic preservation revolving loan fund
Historic Preservation loan fund — Interest revenue
Department of Public Safety
E-911 Uniform Emergency Telephone System
Forfeited property — Retained
Forfeitures — Federal
Forfeited property — Gambling
Donation — Polygraph and Law Enforcement Training
Rhode Island State Firefighter’s League Training Account
Fire Academy Training Fees Account
Attorney General
Forfeiture of property
Federal forfeitures
Attorney General multi-state account
Forfeited property — Gambling
Department of Administration
Health Insurance Market Integrity Fund
RI Health Benefits Exchange
Information Technology restricted receipt account
Restore and replacement — Insurance coverage
Convention Center Authority rental payments
Investment Receipts — TANS

OPEB System Restricted Receipt Account
Grants Management Administration
Office of Energy Resources
OER Reconciliation Funding
RGGI Executive Climate Change Coordinating Council Projects
Electric Vehicle Charging Stations Operating and Maintenance Account
Clean Transportation Programs
Department of Housing
Housing Resources and Homelessness Restricted Receipt Account
Housing Production Fund
Low-Income Housing Tax Credit Fund
Department of Revenue
Car Rental Tax/Surcharge-Warwick Share
DMV Modernization Project
Jobs Tax Credit Redemption Fund
Legislature
Audit of federal assisted programs
Department of Children, Youth and Families
Children’s Trust Accounts — SSI
Military Staff
RI Military Family Relief Fund
RI National Guard Counterdrug Program
Treasury
Admin. Expenses — State Retirement System
Retirement — Treasury Investment Options
Defined Contribution — Administration - RR
Violent Crimes Compensation — Refunds
Treasury Research Fellowship
Business Regulation
Banking Division Reimbursement Account
Office of the Health Insurance Commissioner Reimbursement Account
Securities Division Reimbursement Account
Commercial Licensing and Racing and Athletics Division Reimbursement Account
Insurance Division Reimbursement Account

Historic Preservation Tax Credit Account
Rhode Island Cannabis Control Commission
Marijuana Trust Fund
Social Equity Assistance Fund
Judiciary
Arbitration Fund Restricted Receipt Account
Third-Party Grants
RI Judiciary Technology Surcharge Account
Department of Elementary and Secondary Education
Statewide Student Transportation Services Account
School for the Deaf Fee-for-Service Account
School for the Deaf — School Breakfast and Lunch Program
Davies Career and Technical School Local Education Aid Account
Davies — National School Breakfast & Lunch Program
School Construction Services
Office of the Postsecondary Commissioner
Tuition Savings Program Fund
Higher Education and Industry Center
IGT STEM Scholarships
Department of Labor and Training
Job Development Fund
Contractor Training Restricted Receipt Account
Workers’ Compensation Administrative Account
Rhode Island Uninsured Protection Fund
Rhode Island Council on the Arts
Governors’ Portrait Donation Fund
Statewide records management system account
SECTION 2. Section 39-18.1-5 of the General Laws in Chapter 39-18.1 entitled
"Transportation Investment and Debt Reduction Act of 2011” is hereby amended to read as follows:
39-18.1-5. Allocation of funds.
(a) The monies in the highway maintenance fund to be directed to the department of
transportation pursuant to § 39-18.1-4(b)(1) — (b)(3) shall be allocated through the transportation
improvement program process to provide the state match for federal transportation funds, in place
of borrowing, as approved by the state planning council. The expenditure of moneys in the highway

maintenance fund shall only be authorized for projects that appear in the state’s transportation
improvement program.
(b) Provided, however, that beginning with fiscal year 2015 and annually thereafter, the
department of transportation will allocate necessary funding to programs that are designed to
eliminate structural deficiencies of the state’s bridge, road, and maintenance systems and
infrastructure.
(c) Provided, that beginning July 1, 2015, through June 30, 2025, five percent (5%) of
available proceeds in the Rhode Island highway maintenance account shall be allocated annually
to the Rhode Island public transit authority for operating expenditures.
(d) Provided, that beginning July 1, 2025, ten percent (10%) of available proceeds in the
Rhode Island highway maintenance account shall be allocated annually to the Rhode Island public
transit authority for operating expenditures.
(e) Provided, further, that from July 1, 2017, and annually thereafter through June 30, 2026,
in addition to the amount above, the Rhode Island public transit authority shall receive an amount
of not less than five million dollars ($5,000,000) each fiscal year, except for the period July 1, 2019,
through June 30, 2022, during which such amount or a portion thereof may come from federal
coronavirus relief funds. Provided, further, that beginning July 1, 2026, and annually thereafter, in
addition to the amount above, the Rhode Island public transit authority shall receive an amount of
not less than fourteen million three hundred thousand dollars ($14,300,000) each fiscal year.
SECTION 3. This article shall take effect upon passage, except Section 1 which shall take
effect retroactively as of July 1, 2025.
1. ARTICLE 3
2. RELATING TO GOVERNMENT REFORM AND REORGANIZATION
3. SECTION 1. This section shall serve as a joint resolution required pursuant to R.I. Const.,
4. Art. XIV, Sec. I.
5. J O I N T R E S O L U T I O N
6. TO APPROVE AND PUBLISH AND SUBMIT TO THE ELECTORS A PROPOSITION OF
7. AMENDMENT TO THE CONSTITUTION OF THE STATE OF RHODE ISLAND
8. RESOLVED, that a majority of the members elected to each house of the General
9. Assembly voting therefor, the following amendment to the Constitution of the State of Rhode Island
10. be proposed to the qualified electors of the State for their approval in accordance with the provisions
11. of Article XIV of the Constitution, and that it take the place of Article IX, Section 14, which is
12. hereby amended to read as follows:
13. ARTICLE IX – OF THE EXECUTIVE POWER
14. Section 14. Veto power of governor -- Veto overrides by general assembly – Acts effective
15. without action by governor.
16. Every bill, resolution, or vote (except such as relate to adjournment, the organization or
17. conduct of either or both houses of the general assembly, and resolutions proposing amendment to
18. the Constitution) which shall have passed both houses of the general assembly shall be presented
19. to the governor. If the governor approve it the governor shall sign it, and thereupon it shall become
20. operative, but if the governor does not approve it the governor shall return it, accompanied by the
21. governor's objections in writing to the house in which it originated, which shall enter the governor's
22. objections in full upon its journal and proceed to reconsider it. If, after such reconsideration,
23. three‑fifths of the members present and voting in (except for any bill addressing appropriation of
24. money, two-thirds of the members elected to) that house shall vote to pass the measure, it shall be
25. sent with the objections, to the other house, by which it shall likewise be reconsidered, and if
26. approved by three‑fifths of the members present and voting in (except for any bill addressing
27. appropriation of money, two‑thirds of the members elected to) that house, it shall become operative
28. in the same manner as if the governor had approved it, but in such cases the votes of both houses
29. shall be determined by ayes and nays and the names of the members voting for and against the
30. measure shall be entered upon the journal of each house, respectively. If the measure shall not be
31. returned by the governor within six days (Sundays excepted) after it shall have been presented to
32. the governor the same shall become operative unless the general assembly, by adjournment,
33. prevents its return, in which case it shall become operative unless transmitted by the governor to
34. the secretary of state, with the governor's disapproval in writing within ten days after such

adjournment.
If any bill presented to the governor shall address appropriation of money, the governor
may:
(a) Approve or disapprove the entire bill in like manner as the passage of other bills set
forth in this section; or
(b) Reduce or eliminate any sum or sums of money appropriated in the bill while approving
other portions of the bill, in which case the portions of the bill approved by the governor shall
become law, and each reduced or eliminated sum of money shall also become law unless the general
assembly reconsiders and separately and individually passes the original sum according to the rules
and limitations prescribed in this section for the passage of other bills over the governor’s veto;
and/or
(c) Disapprove one or more items or parts of items of the bill (other than sum or sums of
money described in the immediately preceding paragraph (b) of this section), in which case the
portions of the bill approved by the governor shall become law, and each item or part of an item
disapproved by the governor shall not become law unless the general assembly reconsiders and
separately and individually passes the original version of the item or part of an item according to
the rules and limitations prescribed in this section for the passage of other bills over the governor’s
veto, provided:
(1) That in approving the bill in part, the governor may not create:
(i) a new word by rejecting individual letters in the words; or
(ii) a new sentence by combining parts of two or more sentences; and
(2) Further, that to the extent an item or part of an item disapproved by the governor
constitutes a condition, including but not limited to directing or restricting the use, of an
appropriation, the sum corresponding to the specific item of appropriation to which the disapproved
condition applies shall not be reduced but shall remain as part of the appropriated funds.
RESOLVED, that this proposition of amendment shall be submitted to qualified electors
for their approval or rejection at the next statewide general election. The voting places in the several
cities and towns shall be kept open during the hours required by law for voting therein for general
officers of the state; and be it further
RESOLVED, that the secretary of state shall cause this proposition of amendment to be
published in the newspapers of the state prior to the date of the meetings of qualified electors; and
this proposition of amendment shall be inserted in notices to be issued prior to the meetings of
qualified electors for the purpose of warning the town, ward, or district meetings, and this
proposition of amendment shall be read by the town, ward, or district meetings to be held as

aforesaid; and be it further
RESOLVED, that the town, ward, and district meetings to be held as aforesaid shall be
warned, and the list of voters shall be canvassed and made up, and the town, ward, and district
meetings shall be conducted in the same manner as now provided by law for the town, ward, and
district meetings for the election of general officers of the state; and be it further
RESOLVED, that upon approval by the qualified electors, this proposition of amendment
shall take effect and amend Section 14 of Article IX of the Constitution of the state on January 1,
2027.
SECTION 2. Section 23-24.12-3 of the General Laws in Chapter 23-24.12 entitled “Proper
Management of Unused Paint” is hereby amended to read as follows:
23-24.12-3. Establishment of paint stewardship program.
(a) On or before March 1, 2014, each producer shall join the representative organization
and such representative organization shall submit a plan for the establishment of a paint stewardship
program to the department for approval. The program shall minimize the public sector involvement
in the management of post-consumer paint by reducing the generation of post-consumer paint,
negotiating agreements to collect, transport, reuse, recycle, and/or burn for energy recovery at an
appropriately licensed facility post-consumer paint using environmentally sound management
practices.
(b) The program shall also provide for convenient and available state-wide collection of
post-consumer paint that, at a minimum, provides for collection rates and convenience greater than
the collection programs available to consumers prior to such paint stewardship program; propose a
paint stewardship assessment; include a funding mechanism that requires each producer who
participates in the representative organization to remit to the representative organization payment
of the paint stewardship assessment for each container of architectural paint sold within the state;
include an education and outreach program to help ensure the success of the program; and, work
with the department and Rhode Island commerce corporation to identify ways in which the state
can motivate local infrastructure investment, business development and job creation related to the
collection, transportation and processing of post-consumer paint.
(c) The plan submitted to the department pursuant to this section shall:
(1) Identify each producer participating in the paint stewardship program and the brands of
architectural paint sold in this state covered by the program;
(2) Identify how the representative organization will provide convenient, statewide
accessibility to the program;
(3) Set forth the process by which an independent auditor will be selected and identify the
1. criteria used by the representative organization in selecting independent auditor;
2. (4) Identify, in detail, the educational and outreach program that will be implemented to
3. inform consumers and retailers of the program and how to participate;
4. (5) Identify the methods and procedures under which the paint stewardship program will
5. be coordinated with the Rhode Island resource recovery corporation;
6. (6) Identify, in detail, the operational plans for interacting with retailers on the proper
7. handling and management of post-consumer paint;
8. (7) Include the proposed, audited paint assessment as identified in this section;
9. (8) Include the targeted annual collection rate;
10. (9) Include a description of the intended treatment, storage, transportation and disposal
11. options and methods for the collected post-consumer paint; and
12. (10) Be accompanied by a fee in the amount of two thousand five hundred dollars ($2,500)
13. to be deposited into the environmental response fund to cover the review of said plan by the
14. department.
15. (d) Not later than sixty (60) days after submission of a plan pursuant to this section, the
16. department shall make a determination whether to:
17. (1) Approve the plan as submitted;
18. (2) Approve the plan with conditions; or
19. (3) Deny the plan.
20. (e) Not later than three (3) months after the date the plan is approved, the representative
21. organization shall implement the paint stewardship program.
22. (f) On or before March 1, 2014, the representative organization shall propose a uniform
23. paint stewardship assessment for all architectural paint sold in this state. Such proposed paint
24. stewardship assessment shall be reviewed by an independent auditor to assure that such assessment
25. is consistent with the budget of the paint stewardship program described in this section and such
26. independent auditor shall recommend an amount for such paint stewardship assessment to the
27. department. The department shall be responsible for the approval of such paint stewardship
28. assessment based upon the independent auditor’s recommendation. If the paint stewardship
29. assessment previously approved by the department pursuant to this section is proposed to be
30. changed, the representative organization shall submit the new, adjusted uniform paint stewardship
31. assessment to an independent auditor for review. After such review has been completed, the
32. representative organization shall submit the results of said auditor’s review and a proposal to amend
33. the paint stewardship assessment to the department for review. The department shall review and
34. approve, in writing, the adjusted paint stewardship assessment before the new assessment can be

implemented. Any proposed changes to the paint stewardship assessment shall be submitted to the
department no later than sixty (60) days prior to the date the representative organization anticipates
the adjusted assessment to take effect.
(g) On and after the date of implementation of the paint stewardship program pursuant to
this section, the paint stewardship assessment shall be added to the cost of all architectural paint
sold to retailers and distributors in this state by each producer. On and after such implementation
date, each retailer or distributor, as applicable, shall add the amount of such paint stewardship
assessment to the purchase price of all architectural paint sold in this state.
(h) Any retailer may participate, on a voluntary basis, as a paint collection point pursuant
to such paint stewardship program and in accordance with any applicable provision of law or
regulation.
(i) Each producer and the representative organization shall be immune from liability for
any claim of a violation of antitrust law or unfair trade practice if such conduct is a violation of
antitrust law, to the extent such producer or representative organization is exercising authority
pursuant to the provisions of this section.
(j) Not later than the implementation date of the paint stewardship program, the department
shall list the names of participating producers the brands of architectural paint covered by such
paint stewardship program and the cost of the approved paint stewardship assessment on its
website.
(k)(1) On and after the implementation date of the paint stewardship program, no producer,
distributor or retailer shall sell or offer for sale architectural paint to any person in this state if the
producer of such architectural paint is not a member of the representative organization.
(2) No retailer or distributor shall be found to be in violation of the provisions of this
section if, on the date the architectural paint was ordered from the producer or its agent, the
producer or the subject brand of architectural paint was listed on the department’s website in
accordance with the provisions of this section.
(l) Producers or the representative organization shall provide retailers with educational
materials regarding the paint stewardship assessment and paint stewardship program to be
distributed at the point of sale to the consumer. Such materials shall include, but not be limited to,
information regarding available end-of-life management options for architectural paint offered
through the paint stewardship program and information that notifies consumers that a charge for
the operation of such paint stewardship program is included in the purchase price of all architectural
paint sold in this state.
(m) On or before October 15, 2015, and annually thereafter, the representative organization
1. shall submit a report to the director of the department of environmental management that details
2. the paint stewardship program. Said report shall include a copy of the independent audit detailed
3. in subdivision (4) below. Such annual report shall include, but not be limited to:
4. (1) A detailed description of the methods used to collect, transport and process post-
5. consumer paint in this state;
6. (2) The overall volume of post-consumer paint collected in this state;
7. (3) The volume and type of post-consumer paint collected in this state by method of
8. disposition, including reuse, recycling and other methods of processing or disposal;
9. (4) The total cost of implementing the program, as determined by an independent financial
10. audit, as performed by an independent auditor;
11. (5) An evaluation of the adequacy of the program’s funding mechanism;
12. (6) Samples of all educational materials provided to consumers of architectural paint and
13. participating retailers; and
14. (7) A detailed list of efforts undertaken and an evaluation of the methods used to
15. disseminate such materials including recommendations, if any, for how the educational component
16. of the program can be improved.
17. (n) The representative organization shall submit to the department an updated plan for
18. review and approval every five years, with the first such updated plan due no later than December
19. 31, 2026. update the plan, as needed, when there are changes proposed to the current program. A
20. new plan or amendment will also be required to be submitted to the department for approval when:
21. (1) There is a change to the amount of the assessment; or
22. (2) There is an addition to the products covered under the program; or
23. (3) There is a revision of the product stewardship organization’s goals.: or
24. (4) Every four (4) years, if requested, in writing, by the department the representative
25. organization shall notify the department annually, in writing, if there are no changes proposed to
26. the program and the representative organization intends to continue implementation of the program
27. as previously approved by the department.
28. SECTION 3. Effective July 1, 2026, sections 37-24-3 and 37-24-5 of the General Laws in
29. Chapter 37-24 entitled “The Green Buildings Act” are hereby amended to read as follows:
30. 37-24-3. Definitions.
31. For purposes of this chapter, the following definitions shall apply:
32. (1) “Construction” means the process of building, altering, repairing, improving, or
33. demolishing forty percent (40%) or more of any public structures, public buildings, public real
34. property or other public improvements of any kind to any public structures, public buildings or

public real property.
(2) “Department” means the department of administration the office of the state building
code commissioner.
(3) “Equivalent standard” means a high-performance green building standard, other than
LEED, LEED for Neighborhood Development, and SITES, that provides an independent, third-
party verification and certification of a rating system or measurement tool, that, when used, leads
to outcomes equivalent to, LEED, LEED for Neighborhood Development, and SITES outcomes,
in terms of green building, green infrastructure, and green site performance; current accepted
equivalent standards include green globes, Northeast collaborative high-performance schools
protocol; or other equivalent high-performance green building, green infrastructure, and green site
standards accepted by the department.
(4) “LEED” also, “LEED for Neighborhood Development, and SITES certified standard”
means the current version of the U.S. Green Building Council Leadership in Energy and
Environmental Design (LEED) green building rating standard referred to as LEED, LEED for
Neighborhood Development, and SITES certified. SITES means the U.S. Green Building Council’s
SITES — The Sustainable SITES Initiative.
(5) “Public agency” means every state or municipal office, board, commission, committee,
bureau, department, or public institution of education, or any political subdivision thereof.
(6) “Public facility” means any public institution, public facility, public equipment, or any
physical asset owned, including its public real-property site, leased or controlled in whole or in part
by this state, a public agency, a municipality or a political subdivision, that is for public or
government use.
(7) “Public major facility project” means:
(i) A public facility building construction project larger than ten thousand (10,000) gross
square feet of occupied or conditioned space, and its public real-property site; or
(ii) A public facility building renovation project larger than ten thousand (10,000) gross
square feet of occupied or conditioned space, and its public real-property site.
37-24-5. Administration and reports — Green buildings advisory committee.
(a) The department shall promulgate such regulations as are necessary to enforce this
section by January 1, 2023. Effective July 1, 2026, the office of the state building code
commissioner will assume responsibility for promulgating the rules and regulations regarding the
green buildings advisory committee. The rules and regulations promulgated under title 220, chapter
70, subchapter 00, part 1 of the Rhode Island code of regulations will remain in full force and effect
and shall be enforced by the department of administration until such a time as the rules and

regulations are properly transferred to and promulgated by the office of the state building code
commissioner title within the Rhode Island code of regulations.
Those regulations shall include how the department will determine whether a project
qualifies for an exception from the LEED, LEED for Neighborhood Development, and SITES
certified or equivalent high-performance green building standard, and the green building standards
that may be imposed on projects that are granted exceptions.
(b) The department shall monitor and document ongoing operating savings that result from
major facility projects designed, constructed, and certified as meeting the LEED, LEED for
Neighborhood Development, and SITES certified standard annually publish a public report of
findings and recommended changes in policy. The report shall also include a description of projects
that were granted exceptions from the LEED, LEED for Neighborhood Development, and SITES
certified standard, the reasons for exception, and the lesser green building standards imposed.

13 (c) — (f) [Deleted by P.L. 2022, ch. 204, § 1 and P.L. 2022, ch. 205, § 1.]

(g) A green buildings advisory committee shall be created composed of nineteen (19)
members. The advisory committee shall have eleven (11) public members and eight (8) public
agency members. Five (5) of the public members shall be appointed by the governor; three (3) of
the public members shall be appointed by the president of the senate; and, three (3) of the public
members shall be appointed by the speaker of the house of representatives.
(1) The eleven (11) public members of the advisory committee shall be composed of nine
(9) representatives one from each of the following fields: architecture, engineering, landscape
architecture, energy, labor through the Rhode Island AFL-CIO, general construction contracting,
building product and building materials industries who are involved in, and have recognized
knowledge and accomplishment in their respective professions, of high-performance green
building standards, relating to the standards set forth in § 37-24-4; in addition to two (2) public
members, one representing an urban municipality from Providence, Cranston, Warwick,
Pawtucket, Woonsocket, or Newport, and one public member representing the other thirty-two (32)
municipalities in the state in order to ensure geographic diversity.
(2) The advisory committee shall have eight (8) public agency members representing
personnel from affected public agencies, and cities and towns, that oversee public works projects
and workforce development, who shall be appointed by the directors or chief executive officers of
the respective public agencies which shall include the department of administration; the department
of environmental management; the department of education; the department of transportation; the
department of labor and training; the office of the state building code commissioner; the Rhode
Island infrastructure bank, and the Rhode Island League of Cities and Towns.
1. (3) The chairperson of the green buildings advisory committee shall be a public member
2. chosen by the green buildings advisory committee.
3. (4) Of the initial eleven (11) public members, six (6) shall serve three-year (3) terms and
4. five (5) shall have two-year (2) terms. Each appointing authority shall appoint two (2) public
5. members to three-year (3) terms with the remainder of the public member appointments serving
6. two-year terms. Thereafter, all public members shall be appointed to three-year (3) terms.
7. (h) The green buildings advisory committee shall:
8. (1) Make recommendations regarding an ongoing evaluation process of the green buildings
9. act to help the department and the executive climate change coordinating council implement this
10. chapter;
11. (2) Identify the needs, actions, and funding required to implement the requirements set
12. forth in this chapter, in achieving high-performance green building projects for our public
13. buildings, public structures, and our public real properties;
14. (3) Establish clear, measurable targets for implementing the standards, defined in this
15. chapter, for all public major facility projects including timeline, workforce needs, anticipated costs
16. and other measures identified by the green buildings advisory committee and required by chapter
17. 6.2 of title 42 (“2021 act on climate”); and
18. (4) Identify ways to monitor and document ongoing operating savings and greenhouse gas
19. emission reductions that result from public major facility projects designed, constructed and
20. certified as meeting the LEED, LEED for Neighborhood Development, SITES certified standard,
21. Green Globes, Northeast Collaborative for High-Performance Schools Protocol, Version 1.1 or
22. above and annually publish a report to the general assembly and the executive climate change
23. coordinating council of findings and recommended changes in policy.
24. (i) All requests for proposals, requests for information, requests for bids, requests for
25. design/build, requests for construction managers, and any requests relating to obtaining the
26. professional services, pricing, and construction for major facility projects by a public agency for a
27. public facility, shall include the notice of the statutory requirements of this chapter (“the green
28. buildings act”).
29. (j) The green buildings advisory committee shall have no responsibility for, and shall not
30. develop requests for proposals, requests for information, requests for bids, requests for
31. design/build, requests for construction managers, and any requests relating to obtaining the
32. professional services, pricing, and construction for major facility projects by a public agency for a
33. public facility; and the green buildings advisory committee shall have no responsibility for, and
34. shall not select any vendors for any requests for proposals, requests for information, requests for

bids, requests for design/build, requests for construction managers, and any requests relating to
obtaining the professional services, pricing, and construction for major facility projects by a public
agency for a public facility. Nothing shall prohibit public members of the green buildings advisory
committee from responding to, and being involved with, any submittals of requests for proposals,
requests for information, requests for bids, requests for design/build, requests for construction
managers, and any requests relating to obtaining the professional services, pricing, and construction
for major facility projects by a public agency for a public facility.
(k) The department of administration shall commission a report to analyze the costs and/or
benefits of LEED certification compared to equivalent standards. This includes, but is not limited
to, the impact of obtaining formal LEED certification on project budget and timeline.
SECTION 4. Chapter 42-12 of the General Laws entitled "Department of Human Services"
is hereby amended by adding thereto the following section:
42-12-1.6. Transfer of functions to the office of energy resources.
(a) There is hereby transferred from the department of human services to the office of
energy resources the administration, management, all functions and resources associated with:
(1) The weatherization assistance program which offers weatherization grants and heating
system upgrades using funds from the federal department of energy and the federal low-income
home energy assistance program, and any state funded or privately funded weatherization
assistance program of a similar nature assigned to it;
(b) The department is authorized to offer advisory assistance to the office of energy
resources in order to maintain continuity to eligible households.
SECTION 5. Section 42-12-1.5 of the General Laws in Chapter 42-12 entitled "Department
of Human Services" is hereby amended to read as follows:
42-12-1.5. Transfer of functions from the office of energy resources.
(a) There is hereby transferred from the office of energy resources to the department of
human services the administration, management, all functions and resources associated with:
(1) The federal low-income home energy assistance program (LIHEAP), which provides
heating assistance to eligible low-income persons and any state funded or privately funded heating
assistance program of a similar nature assigned to it for administration;
(2) The weatherization assistance program, which offers home weatherization grants and
heating system upgrades to LIHEAP eligible households; and,
(3) (2) The emergency fuel program, which provides oil deliveries to families experiencing
a heating emergency.
(b) The department is authorized to request advisory assistance from the office of energy
1. resources in order to maintain continuity of assistance provided to LIHEAP eligible households
2. pursuant to § 39-2-1(d).
3. SECTION 6. Chapter 42-17.1 of the General Laws entitled “Department of Environmental
4. Management” is hereby amended by adding thereto the following section:
5. 42-17.1-47. Big River Reservoir — Administration.
6. The Rhode Island department of environmental management, established pursuant to
7. chapter 17.1 of this title, shall administer those lands acquired for the Big River Reservoir as
8. established under section 23 of chapter 133 of the Public Laws of 1964. The director of the
9. department of environmental management and the director’s authorized agents, employees, and
10. designees shall manage the land and natural resources of the Big River Reservoir. The lands of the
11. Big River Reservoir are subject to enforcement authority of the department of environmental
12. management, as provided for in chapter 17.1 of this title, and as provided for in title 20 of the
13. General Laws. Nothing contained herein shall be construed to affect any of the powers granted to
14. the water resources board (agency) with regard to fresh water resource management pursuant to
15. chapters 15 and 15.1 of title 46.
16. Effective July 1, 2026, the department of environmental management will assume
17. responsibility for all land use planning and for promulgating the rules and regulations regarding the
18. administration of the Big River Reservoir consistent with the requirements of R.I. Gen. Laws § 37-
19. 20-1. The rules and regulations promulgated under 490-RICR-00-00-5 of the Rhode Island code of
20. regulations will remain in full force and effect until such a time as the rules and regulations are
21. properly transferred to and promulgated by the department of environmental management's title
22. within the Rhode Island code of regulations.
23. SECTION 7. Section 42-17.1-2 of the General Laws in Chapter 42-17.1 entitled
24. “Department of Environmental Management” is hereby amended to read as follows:
25. 42-17.1-2. Powers and duties.
26. The director of environmental management shall have the following powers and duties:
27. (1) To supervise and control the protection, development, planning, and utilization of the
28. natural resources of the state, such resources, including, but not limited to: water, plants, trees, soil,
29. clay, sand, gravel, rocks and other minerals, air, mammals, birds, reptiles, amphibians, fish,
30. shellfish, and other forms of aquatic, insect, and animal life;
31. (2) To exercise all functions, powers, and duties heretofore vested in the department of
32. agriculture and conservation, and in each of the divisions of the department, such as the promotion
33. of agriculture and animal husbandry in their several branches, including the inspection and
34. 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
1. water, and the design, construction, and operation of all sewage disposal systems; any order or
2. notice issued by the director relating to the location, design, construction, or maintenance of a
3. sewage disposal system shall be eligible for recordation under chapter 13 of title 34. The director
4. shall forward the order or notice to the city or town wherein the subject property is located and the
5. order or notice shall be recorded in the general index by the appropriate municipal official in the
6. land evidence records in the city or town wherein the subject property is located. Any subsequent
7. transferee of that property shall be responsible for complying with the requirements of the order or
8. notice. Upon satisfactory completion of the requirements of the order or notice, the director shall
9. provide written notice of the same, which notice shall be similarly eligible for recordation. The
10. original written notice shall be forwarded to the city or town wherein the subject property is located
11. and the notice of satisfactory completion shall be recorded in the general index by the appropriate
12. municipal official in the land evidence records in the city or town wherein the subject property is
13. located. A copy of the written notice shall be forwarded to the owner of the subject property within
14. five (5) days of a request for it, and, in any event, shall be forwarded to the owner of the subject
15. property within thirty (30) days after correction;
16. (14) To establish minimum standards for the establishment and maintenance of salutary
17. environmental conditions, including standards and methods for the assessment and the
18. consideration of the cumulative effects on the environment of regulatory actions and decisions,
19. which standards for consideration of cumulative effects shall provide for: (i) Evaluation of potential
20. cumulative effects that could adversely affect public health and/or impair ecological functioning;
21. (ii) Analysis of other matters relative to cumulative effects as the department may deem appropriate
22. in fulfilling its duties, functions, and powers; which standards and methods shall only be applicable
23. to ISDS systems in the town of Jamestown in areas that are dependent for water supply on private
24. and public wells, unless broader use is approved by the general assembly. The department shall
25. report to the general assembly not later than March 15, 2008, with regard to the development and
26. application of the standards and methods in Jamestown;
27. (15) To establish and enforce minimum standards for permissible types of septage,
28. industrial-waste disposal sites, and waste-oil disposal sites;
29. (16) To establish minimum standards, subject to the approval of the environmental
30. standards board, for permissible types of refuse disposal facilities; the design, construction,
31. operation, and maintenance of disposal facilities; and the location of various types of facilities;
32. (17) To exercise all functions, powers, and duties necessary for the administration of
33. chapter 19.1 of title 23 entitled “Rhode Island Hazardous Waste Management Act”;
34. (18) To designate, in writing, any person in any department of the state government or any
  1. official of a district, county, city, town, or other governmental unit, with that official’s consent, to
  2. enforce any rule, regulation, or order promulgated and adopted by the director under any provision
  3. of law; provided, however, that enforcement of powers of the coastal resources management
  4. council shall be assigned only to employees of the department of environmental management,
  5. except by mutual agreement or as otherwise provided in chapter 23 of title 46;
  6. (19) To issue and enforce the rules, regulations, and orders as may be necessary to carry
  7. out the duties assigned to the director and the department by any provision of law; and to conduct
  8. investigations and hearings and to issue, suspend, and revoke licenses as may be necessary to
  9. enforce those rules, regulations, and orders. Any license suspended under the rules, regulations,
  10. and/or orders shall be terminated and revoked if the conditions that led to the suspension are not
  11. corrected to the satisfaction of the director within two (2) years; provided that written notice is
  12. given by certified mail, return receipt requested, no less than sixty (60) days prior to the date of
  13. termination.
  14. Notwithstanding the provisions of § 42-35-9 to the contrary, no informal disposition of a
  15. contested licensing matter shall occur where resolution substantially deviates from the original
  16. application unless all interested parties shall be notified of the proposed resolution and provided
  17. with opportunity to comment upon the resolution pursuant to applicable law and any rules and
  18. regulations established by the director;
  19. (20) To enter, examine, or survey, at any reasonable time, places as the director deems
  20. necessary to carry out the director’s responsibilities under any provision of law subject to the
  21. following provisions:
  22. (i) For criminal investigations, the director shall, pursuant to chapter 5 of title 12, seek a
  23. search warrant from an official of a court authorized to issue warrants, unless a search without a
  24. warrant is otherwise allowed or provided by law;
  25. (ii)(A) All administrative inspections shall be conducted pursuant to administrative
  26. guidelines promulgated by the department in accordance with chapter 35 of this title;
  27. (B) A warrant shall not be required for administrative inspections if conducted under the
  28. following circumstances, in accordance with the applicable constitutional standards:
  29. (I) For closely regulated industries;
  30. (II) In situations involving open fields or conditions that are in plain view;
  31. (III) In emergency situations;
  32. (IV) In situations presenting an imminent threat to the environment or public health, safety,
  33. or welfare;
  34. (V) If the owner, operator, or agent in charge of the facility, property, site, or location
    1. consents; or
    2. (VI) In other situations in which a warrant is not constitutionally required.
    3. (C) Whenever it shall be constitutionally or otherwise required by law, or whenever the
    4. director in the director’s discretion deems it advisable, an administrative search warrant, or its
    5. functional equivalent, may be obtained by the director from a neutral magistrate for the purpose of
    6. conducting an administrative inspection. The warrant shall be issued in accordance with the
    7. applicable constitutional standards for the issuance of administrative search warrants. The
    8. administrative standard of probable cause, not the criminal standard of probable cause, shall apply
    9. to applications for administrative search warrants;
    10. (I) The need for, or reliance upon, an administrative warrant shall not be construed as
    11. requiring the department to forfeit the element of surprise in its inspection efforts;
    12. (II) An administrative warrant issued pursuant to this subsection must be executed and
    13. returned within ten (10) days of its issuance date unless, upon a showing of need for additional
    14. time, the court orders otherwise;
    15. (III) An administrative warrant may authorize the review and copying of documents that
    16. are relevant to the purpose of the inspection. If documents must be seized for the purpose of
    17. copying, and the warrant authorizes the seizure, the person executing the warrant shall prepare an
    18. inventory of the documents taken. The time, place, and manner regarding the making of the
    19. inventory shall be set forth in the terms of the warrant itself, as dictated by the court. A copy of the
    20. inventory shall be delivered to the person from whose possession or facility the documents were
    21. taken. The seized documents shall be copied as soon as feasible under circumstances preserving
    22. their authenticity, then returned to the person from whose possession or facility the documents were
    23. taken;
    24. (IV) An administrative warrant may authorize the taking of samples of air, water, or soil
    25. or of materials generated, stored, or treated at the facility, property, site, or location. Upon request,
    26. the department shall make split samples available to the person whose facility, property, site, or
    27. location is being inspected;
    28. (V) Service of an administrative warrant may be required only to the extent provided for
    29. in the terms of the warrant itself, by the issuing court.
    30. (D) Penalties. Any willful and unjustified refusal of right of entry and inspection to
    31. department personnel pursuant to an administrative warrant shall constitute a contempt of court and
    32. shall subject the refusing party to sanctions, which in the court’s discretion may result in up to six
    33. (6) months’ imprisonment and/or a monetary fine of up to ten thousand dollars ($10,000) per
    34. refusal;
      1. (21) To give notice of an alleged violation of law to the person responsible therefor
      2. whenever the director determines that there are reasonable grounds to believe that there is a
      3. violation of any provision of law within the director’s jurisdiction or of any rule or regulation
      4. adopted pursuant to authority granted to the director. Nothing in this chapter shall limit the authority
      5. of the attorney general to prosecute offenders as required by law;
      6. (i) The notice shall provide for a time within which the alleged violation shall be remedied,
      7. and shall inform the person to whom it is directed that a written request for a hearing on the alleged
      8. violation may be filed with the director within twenty (20) days after service of the notice. The
      9. notice will be deemed properly served upon a person if a copy thereof is served the person
      10. personally; or sent by registered or certified mail to the person’s last known address; or if the person
      11. is served with notice by any other method of service now or hereafter authorized in a civil action
      12. under the laws of this state. If no written request for a hearing is made to the director within twenty
      13. (20) days of the service of notice, the notice shall automatically become a compliance order;
      14. (ii)(A) Whenever the director determines that there exists a violation of any law, rule, or
      15. regulation within the director’s jurisdiction that requires immediate action to protect the
      16. environment, the director may, without prior notice of violation or hearing, issue an immediate-
      17. compliance order stating the existence of the violation and the action the director deems necessary.
      18. The compliance order shall become effective immediately upon service or within such time as is
      19. specified by the director in such order. No request for a hearing on an immediate-compliance order

20 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;
1. (v) The compliance order shall state a time within which the violation shall be remedied,
2. and the original time specified in the notice of violation shall be extended to the time set in the
3. order;
4. (vi) Whenever a compliance order has become effective, whether automatically where no
5. hearing has been requested, where an immediate-compliance order has been issued, or upon
6. decision following a hearing, the director may institute injunction proceedings in the superior court
7. of the state for enforcement of the compliance order and for appropriate temporary relief, and in
8. that proceeding, the correctness of a compliance order shall be presumed and the person attacking
9. the order shall bear the burden of proving error in the compliance order, except that the director
10. shall bear the burden of proving in the proceeding the correctness of an immediate-compliance
11. order. The remedy provided for in this section shall be cumulative and not exclusive and shall be
12. in addition to remedies relating to the removal or abatement of nuisances or any other remedies
13. provided by law;
14. (vii) Any party aggrieved by a final judgment of the superior court may, within thirty (30)
15. days from the date of entry of such judgment, petition the supreme court for a writ of certiorari to
16. review any questions of law. The petition shall set forth the errors claimed. Upon the filing of the
17. petition with the clerk of the supreme court, the supreme court may, if it sees fit, issue its writ of
18. certiorari;
19. (22) To impose administrative penalties in accordance with the provisions of chapter 17.6
20. of this title and to direct that such penalties be paid into the account established by subsection (26);
21. (23) The following definitions shall apply in the interpretation of the provisions of this
22. chapter:
23. (i) Director: The term “director” shall mean the director of environmental management of
24. the state of Rhode Island or the director’s duly authorized agent;
25. (ii) Person: The term “person” shall include any individual, group of individuals, firm,
26. corporation, association, partnership, or private or public entity, including a district, county, city,
27. town, or other governmental unit or agent thereof, and in the case of a corporation, any individual
28. having active and general supervision of the properties of the corporation;
29. (iii) Service:
30. (A) Service upon a corporation under this section shall be deemed to include service upon
31. both the corporation and upon the person having active and general supervision of the properties
32. of the corporation;
33. (B) For purposes of calculating the time within which a claim for a hearing is made
34. 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

25 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;
1. (v) Maintenance of a process to promote, organize, and facilitate meetings prior to the
2. submission of applications or other proposals in order to inform the applicant on options and
3. opportunities to minimize environmental impact; improve the potential for sustainable
4. environmental compliance; and support an effective and efficient review and decision-making
5. process on permit applications related to the proposed project;
6. (vi) Development of single permits under multiple authorities otherwise provided in state
7. law to support comprehensive and coordinated reviews of proposed projects. The director may
8. address and resolve conflicting or redundant process requirements in order to achieve an effective
9. and efficient review process that meets environmental objectives; and
10. (vii) Exploration of the use of performance-based regulations coupled with adequate
11. inspection and oversight, as an alternative to requiring applications or submissions for approval
12. prior to initiation of projects;
13. (36) To formulate and promulgate regulations requiring any dock or pier longer than
14. twenty feet (20′) and located on a freshwater lake or pond to be equipped with reflective materials,
15. on all sides facing the water, of an appropriate width and luminosity such that it can be seen by
16. operators of watercraft;
17. (37) To temporarily waive any control or prohibition respecting the use of a fuel or fuel
18. additive required or regulated by the department if the director finds that:
19. (i) Extreme or unusual fuel or fuel additive supply circumstances exist in the state or the
20. New England region that prevent the distribution of an adequate supply of the fuel or fuel additive
21. to consumers;
22. (ii) Extreme or unusual fuel or fuel additive supply circumstances are the result of a natural
23. disaster, an act of God, a pipeline or refinery equipment failure, or another event that could not
24. reasonably have been foreseen; and
25. (iii) It is in the public interest to grant the waiver.
26. Any temporary waiver shall be made in writing and shall be effective for twenty (20)
27. calendar days; provided, that the director may renew the temporary waiver, in writing, if it is
28. deemed necessary; and
29. (38)(i) To designate by rule certain waters of the state as shellfish or marine life project
30. management areas for the purpose of enhancing the cultivation and growth of marine species,
31. managing the harvest of marine species, facilitating the conduct by the department of experiments
32. in planting, cultivating, propagating, managing, and developing any and all kinds of marine life,
33. and any other related purpose.
34. (ii) Any such designation shall be by reference to fixed landmarks and include an explicit
  1. description of the area to be designated.
  2. (iii) Once so designated, the director may adopt rules and regulations addressing
  3. restrictions on the quantities, types, or sizes of marine species that may be taken in any individual
  4. management area, the times during which marine species may be taken, the manner or manners in
  5. that marine species may be taken, the closure of such area to the taking of marine species, or any
  6. other specific restrictions as may be deemed necessary. Such rules shall be exempt from the
  7. requirements of §§ 42-35-2.7, 42-35-2.8, and 42-35-2.9.
  8. (iv) The director, upon the designation of a management area, may place any stakes,
  9. bounds, buoys, or markers with the words “Rhode Island department of environmental
  10. management” plainly marked on them, as will approximate the management area. Failure to place
  11. or maintain the stakes, bounds, buoys, or markers shall not be admissible in any judicial or
  12. administrative proceeding.
  13. (v) Nothing in this section shall prevent the director from implementing emergency rules

14 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 (P.L. of 1964, chapter
133).
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 Act” are hereby amended to read as follows:

21 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
1. stabilization agreement from the municipality in which the real estate project is located on such
2. terms as the commerce corporation deems acceptable;
3. (ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied
4. by at least one business employing at least 25 full-time employees after construction or such
5. additional full-time employees as the commerce corporation may determine; (B) Is a multi-family
6. residential development in a new, adaptive reuse, certified historic structure, or recognized
7. historical structure consisting of at least 20,000 square feet and having at least 20 residential units
8. in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic
9. structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at
10. least one business, subject to further definition through rules and regulations promulgated by the
11. commerce corporation; and
12. (iii) Involves a total project cost of not less than $5,000,000, except for a qualified
13. development project located in a hope community or redevelopment area designated under § 45-
14. 32-4 in which event the commerce corporation shall have the discretion to modify the minimum
15. project cost requirement.
16. (4) Until July 1, 2025, pursuant to P.L. 2022 ch. 271 and P.L. 2022 ch. 272, for construction
17. projects in excess of ten million dollars ($10,000,000), all construction workers shall be paid in
18. accordance with the wages and benefits required pursuant to chapter 13 of title 37 with all
19. contractors and subcontractors required to file certified payrolls on a monthly basis for all work
20. completed in the preceding month on a uniform form prescribed by the director of labor and
21. training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a
22. material violation and a material breach of the agreement with the state. The commerce corporation,
23. in consultation with the director of labor and training and the tax administrator, shall promulgate
24. such rules and regulations as are necessary to implement the enforcement of this subsection. The
25. provisions of this subsection shall expire and sunset on July 1, 2025.
26. (5) Notwithstanding any general or special law or rule or regulation to the contrary, for
27. construction projects that have executed a tax credit agreement on or after July 1, 2025, and
28. involving a budget of direct hard construction costs (as defined in § 44-33.6-2) in excess of twenty-
29. five million dollars ($25,000,000), all construction workers shall be paid in accordance with the
30. wages and benefits required pursuant to chapter 13 of title 37 with all contractors and
31. subcontractors required to file certified payrolls on a monthly basis for all work completed in the
32. preceding month on a uniform form prescribed by the director of labor and training. Failure to
33. follow the requirements pursuant to chapter 13 of title 37 shall constitute a material violation and
34. 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.
1. (2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax
2. exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000)
3. for any qualified development project under this chapter; except as provided in subsection (f)(3) of
4. this section; provided however, any qualified development project that exceeds the project cap upon
5. passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further
6. increased. No building or qualified development project to be completed in phases or in multiple
7. projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all
8. phases or projects involved in the rehabilitation of the building. Provided, however, that for
9. purposes of this subsection and no more than once in a given fiscal year, the commerce corporation

10 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 seventy 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
personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such
as a partnership, a limited liability company taxed as a partnership, or multiple owners of property.
(o) In the case of a corporation, this credit is only allowed against the tax of a corporation
included in a consolidated return that qualifies for the credit and not against the tax of other
corporations that may join in the filing of a consolidated tax return.
(p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem
this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division
of taxation, in consultation with the commerce corporation, shall establish by regulation a
redemption process for tax credits.
(q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the
commerce corporation, be exempt from sales and use taxes imposed on the purchase of the
following classes of personal property only to the extent utilized directly and exclusively in the
project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles;
or (2) Other materials, including construction materials and supplies, that are depreciable and have
a useful life of one year or more and are essential to the project.
(r) The commerce corporation shall promulgate rules and regulations for the administration
and certification of additional tax credit under subsection (g), including criteria for the eligibility,
evaluation, prioritization, and approval of projects that qualify for such additional tax credit.
(s) The commerce corporation shall not have any obligation to make any award or grant
any benefits under this chapter.

27 42-64.20-10. Sunset.

28 No credits shall be authorized to be reserved pursuant to this chapter after December 31,

29 2026December 31, 2027.

30 SECTION 9. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled “Rhode

31 Island Tax Increment Financing” is hereby amended to read as follows:

32 42-64.21-9. Sunset.

33 The commerce corporation shall enter into no agreement under this chapter after December

34 31, 2026December 31, 2027.

1 SECTION 10. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled “Tax

2 Stabilization Incentive” is hereby amended to read as follows:

3 42-64.22-15. Sunset.

4 The commerce corporation shall enter into no agreement under this chapter after December

5 31, 2026December 31, 2027.

6 SECTION 11. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled “First

7 Wave Closing Fund Act” is hereby amended to read as follows:

8 42-64.23-8. Sunset.

9 No financing shall be authorized to be reserved pursuant to this chapter after December 31,

10 2026December 31, 2027.

11 SECTION 12. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled “I-195

12 Redevelopment Project Fund Act” is hereby amended as follows:

13 42-64.24-8. Sunset.

14 No funding, credits, or incentives shall be authorized or authorized to be reserved pursuant

15 to this chapter after December 31, 2026December 31, 2027.

16 SECTION 13. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled “Stay

17 Invested in RI Wavemaker Fellowship” is hereby amended to read as follows:

18 42-64.26-12. Sunset.

19 No incentives or credits shall be authorized pursuant to this chapter after December 31,

20 2026December 31, 2027.

21 SECTION 14. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled “Main

22 Street Rhode Island Streetscape Improvement Fund” is hereby amended as follows:

23 42-64.27-6. Sunset.

24 No incentives shall be authorized pursuant to this chapter after December 31,

25 2026December 31, 2027.

26 SECTION 15. Section 42-64.28-10 of the General Laws in Chapter 42-64.28 entitled

27 “Innovation Initiative” is hereby amended as follows:

28 42-64.28-10. Sunset.

29 No vouchers, grants, or incentives shall be authorized pursuant to this chapter after

30 December 31, 2026December 31, 2027.

SECTION 16. Chapter 42-140 of the General Laws entitled "Rhode Island Energy
Resources Act" is hereby amended by adding thereto the following section:
42-140-13. Energy Benchmarking and Performance Standards Program
(a) Definitions. For the purposes of this section:

(1) “Department” shall mean all state departments whose directors are enumerated in R.I.
Gen. Laws § 42-6-3 and shall additionally include the executive office of health and human
services, the executive office of commerce, and the executive office of housing.
(2) “Public buildings” for the purpose of this section shall mean all municipal and school
buildings owned by a municipality that are at least 25,000 gross square feet.
(3) “State-owned, state-occupied facilities” shall mean buildings owned by the state that
primarily contain offices or other administrative work space for state employees and are at least
25,000 gross square feet.
(b) State Facilities Energy Usage Reporting
(1) State departments, coordinated and supported by the office of energy resources, shall
be required to measure and report monthly energy usage by energy source for their respective state-
owned, state-occupied facilities, as well as the gross square footage for each building.
(2) Beginning March 31, 2029, and recurring annually thereafter, departments, coordinated
and supported by the office of energy resources, shall report to the office energy use data by source
for state-owned, state-occupied facilities for the preceding calendar year. No later than 180 days
from the March 31 reporting deadline each year, the office shall compile, publish and post on its
website each facility’s energy use data by fuel and total emissions.
(c) State Facilities Benchmarking and Performance Standards Program
(1) Utilizing the data due March 31, 2029, in subsection (b)(2), the office of energy
resources shall, with consultation from departments, develop and publish performance standards
for state-owned, state-occupied facilities by March 31, 2030 and may update the performance
standards and any revision to the standards thereafter. The performance standards published must
include:
(i) An annualized emissions standard based on energy usage for each state-owned, state-
occupied facility as necessary, to achieve by specified dates;
(ii) A schedule for compliance terminating in 2050; and
(iii) The cost-benefit analysis used to determine which state-owned, state-occupied
facilities are assigned performance standards, as set forth in subsection (c)(2) below.
(2) The performance standards shall be determined by evaluating:
(i) The total amount of emissions reductions that could be achieved while maintaining state
operations;
(ii) The relative contribution of the emissions reductions to decadal targets established by
R.I. Gen. Laws § 42-6.2-2 compared to other strategies, programs, and actions established by the
executive climate change coordinating council in its plan due December 31, 2025, in accordance

with subsection (2)(i) of R.I. Gen. Laws § 42-6.2-2; and
(iii) The fiscal impacts of achieving the performance standards.
(3) The departments shall meet the performance standards set in accordance with
subsection (c)(2). No later than 90 days after each specified compliance date established in
accordance with subsection (c)(1), the office of energy resources shall publish a performance
standards compliance report demonstrating the status of each state-owned, state-occupied facility
subject to a performance standard and post on its website. In the event that a state-owned, state-
occupied facility fails to meet a performance standard, the office of energy resources shall provide
a corrective action plan with which the state-owned, state-occupied facility shall comply within 90
days of the compliance deadline.
(4) Subsections (c)(1), (c)(2), and (c)(3) shall not apply to state-owned, state-occupied
facilities which the office and department of administration determine are not suitable candidates
for achieving greenhouse gas emission reductions due to economic infeasibility or unique
operational or physical limitations. Any such determinations shall be published in addition to the
standards required in subsection (c)(2) and posted on the office’s website.
(d) Voluntary Energy Benchmarking Program for Public Buildings
(i) The office of energy resources shall provide technical and financial assistance to
municipalities for a voluntary public buildings energy benchmarking program of public buildings
on municipal properties in which buildings are greater than twenty-five thousand (25,000) square
feet.
(ii) The office of energy resources shall maintain a website that tracks its implementation
of the voluntary public buildings energy benchmarking program. The office shall submit to the
Governor and General Assembly by May 1, 2028, and annually thereafter a progress report on the
voluntary public buildings energy benchmarking program.
SECTION 17. Section 42-140-3 of the General Laws in Chapter 42-140 entitled “Rhode
Island Energy Resources Act” is hereby amended to read as follows:

27 42-140-3. Purposes.

The purposes of the office shall be to:
(1) Develop and put into effect plans and programs to promote, encourage, and assist the
provision of energy resources for Rhode Island in a manner that enhances economic well-being,
social equity, and environmental quality;
(2) Monitor, forecast, and report on energy use, energy prices, and energy demand and
supply forecasts, and make findings and recommendations with regard to energy supply diversity,
reliability, and procurement, including least-cost procurement;
1. (3) Develop and to put into effect plans and programs to promote, encourage, and assist
2. the efficient and productive use of energy resources in Rhode Island, and to coordinate energy
3. programs for natural gas, electricity, and heating oil to maximize the aggregate benefits of
4. conservation and efficiency of investments;
5. (4) Monitor and report technological developments that may result in new and/or improved
6. sources of energy supply, increased energy efficiency, and reduced environmental impacts from
7. energy supply, transmission, and distribution;
8. (5) Administer the programs, duties, and responsibilities heretofore exercised by the state
9. energy office, except as these may be assigned by executive order or the general laws to other
10. departments and agencies of state government;
11. (6) Develop, recommend, and, as appropriate, implement integrated and/or comprehensive
12. strategies, including at regional and federal levels, to secure Rhode Island’s interest in energy
13. resources, their supply and efficient use, and as necessary to interact with persons, private sector,
14. nonprofit, regional, federal entities and departments and agencies of other states to effectuate this
15. purpose;
16. (7) Cooperate with agencies, departments, corporations, and entities of the state and of
17. political subdivisions of the state in achieving its purposes;
18. (8) Cooperate with and assist the state planning council and the division of state planning
19. in developing, maintaining, and implementing state guide plan elements pertaining to energy and
20. renewable energy;
21. (9) Coordinate the energy efficiency, least-cost procurement, and systems reliability plans
22. and programs with the energy efficiency and resources management council;
23. (10) Participate in, monitor implementation of, and provide technical assistance for the
24. low-income home energy assistance program enhancement plan established pursuant to § 39-1-
25. 27.12;
26. (11) Participate in and monitor the distributed generation standard contracts program
27. pursuant to chapter 26.2 of title 39;
28. (12) (11) Coordinate opportunities with and enter into contracts and/or agreements with
29. the commerce corporation associated with the energy efficiency, least-cost procurement, system
30. reliability, and renewable energy fund programs;
31. (13) (12) Provide support and information to the division of planning and the state planning
32. council in the development of a ten-year (10) Rhode Island Energy Guide Plan, which shall be
33. reviewed and amended if necessary every five (5) years;
34. (13) Administer the federal Weatherization Assistance Program and any state or privately
  1. funded weatherization program;
  2. (14) Advise and provide technical assistance to state and federally funded energy programs
  3. to support:
  4. (i) The federal low-income home energy assistance program which provides heating
  5. assistance to eligible low-income persons and any state funded or privately funded heating
  6. assistance program of a similar nature assigned to it for administration;
  7. (ii) The weatherization assistance program which offers home weatherization grants and
  8. heating system upgrades to eligible persons of low-income;
  9. (iii) The emergency fuel program which provides oil deliveries to families experiencing a
  10. heating emergency;
  11. (iv) The energy conservation program, which offers service and programs to all sectors;
  12. (v) [Deleted by P.L. 2008, ch. 228, § 2, and P.L. 2008, ch. 422, § 2.]
  13. (15) Advise the commerce corporation in the development of standards and rules for the
  14. solicitation and award of renewable energy program investment funds in accordance with § 42-64-
  15. 13.2;
  16. (16) Develop, recommend, and evaluate energy programs for state facilities and operations
  17. in order to achieve and demonstrate the benefits of energy-efficiency, diversification of energy
  18. supplies, energy conservation, and demand management; and
  19. (17) Advise the governor and the general assembly with regard to energy resources and all
  20. matters relevant to achieving the purposes of the office.
  21. (18) Administer and implement all state energy bond referendums that are approved.
  22. SECTION 18. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled “Rhode
  23. Island Qualified Jobs Incentive Act of 2015” is hereby amended as follows:

24 44-48.3-14. Sunset.

25 No credits shall be authorized to be reserved pursuant to this chapter after December 31,

26 2026December 31, 2027.

SECTION 19. Chapter 46-15.1 of the General Laws entitled “Water Supply Facilities” is
hereby amended by adding thereto the following section:
46-15.1-23. Transfer of powers and functions from the water resources board for big
river reservoir administration.
The administration of lands acquired for the Big River Reservoir, as established under
section 23 of chapter 133 of the Public Laws of 1964, are hereby transferred to the department of
environmental management. However, all other general authority granted to the water resource
board in chapters 15 and 15.1 of title 46 is hereby retained by the water resource board.
1. SECTION 20. Section 46-15.1-5 of the General Laws in Chapter 46-15.1 entitled “Water
2. Supply Facilities” is hereby amended to read as follows:

3 46-15.1-5. Powers.

(a) The board shall carry out its functions and shall have the following powers:
(1) To adopt a seal and to alter the seal from time to time;
(2) To sue and be sued;
(3) To purchase, hold, and dispose of real and personal property, or interests therein, and
to lease the property as lessee or lessor;
(4) To make or cause to be made such surveys and borings as it may deem necessary;
(5) To engage engineering, legal, accounting, and other professional services;
(6) To make contracts;
(7) To employ personnel and fix their rates of compensation;
(8) To borrow money and issue its bonds and notes as hereinafter provided;
(9) To apply and contract for and to expend assistance from the United States or other
sources, whether in the form of a grant or loan or otherwise;
(10) To adopt and amend bylaws for the regulation of its affairs and the conduct of its
business;
(11) To invest or deposit funds in demand deposits, savings deposits, and time deposits in
any bank or trust company which is a member of the Federal Deposit Insurance Corporation or in
any obligations issued or guaranteed by the United States or any agency or instrumentality thereof,
or as provided in § 35-10-11;
(12) To establish, operate, and maintain or lease to others, or contract with others for the
use of, such water supply facilities as may be reasonably required for the fulfillment of its purposes;
(13) To purchase and sell water;
(14) To exercise such other powers as may be necessary or incidental to the exercise of the
foregoing powers or to the accomplishment of the purposes of the board;
(15) To acquire, within the limitation of funds therefor, the sites, appurtenant marginal
lands, dams, waters, water rights, rights of way, easements, and other property in interests in
property for reservoirs, groundwater wells, well sites, and for such pipe lines, aqueducts, pumping
stations, filtration plants, and auxiliary structures as may be necessary or desirable for the treatment
and distribution of water from those reservoirs, groundwater wells, and well sites. Lands acquired
under the provisions of this section shall be acquired with the approval of the governor by purchase,
gift, devise, or otherwise on such terms and conditions as the board shall determine, or by the
exercise of eminent domain, in accordance with the provisions of chapter 6 of title 37, as amended,

insofar as those provisions are consistent with the provisions hereof;
(16) To construct or purchase water reservoirs, wells and well sites, processing facilities,
transmission or distribution systems, and other facilities, including existing facilities of municipal
water agencies or departments, special water districts, or private water companies, necessary to
accomplish the purposes of this chapter and to implement its plans and program;
(17) To acquire the assets, assume the liabilities, or to effect the merger into itself of any
corporation or other organization, including public or private water supply systems incorporated or
organized under the laws of this state, which corporation or organization has as its principal
business the establishment of water supply facilities or provision of related services, all upon such
terms and for such consideration as the board shall deem to be appropriate;
(18) To lease, sell, or otherwise convey any reservoir sites or other water supply or
distribution facilities acquired, constructed, or purchased by the board to any municipal water
agency or department or special water district or private water company, upon such terms as the
board shall deem appropriate;
(19) To provide for cooperative development, conservation, and use of water resources by
the state, municipal agencies or departments, special water districts or privately owned water
systems, the board may:
(i) Authorize publicly or privately owned water supply agencies to build structures or
install equipment on land owned or leased by the board.
(ii) Enter into contracts with publicly or privately owned water supply agencies for
operation of any facilities owned or leased by the board or operate any such facility by itself.
(20) To enter into contracts to supply raw or processed water to publicly or privately owned
water supply agencies, which shall be approved as to substance by the director of administration
and as to form by the attorney general;
(21) To review all plans and proposals for construction or installation of facilities for water
supply in accordance with the applicable sections of chapter 15 of this title;
(22) To make loans to publicly owned water supply agencies for acquisition, construction,
and renovation of water supply facilities from funds which may be appropriated for this purpose
by the general assembly, from bonds issued for this purpose, or from other funds which may
become available to the board for this purpose;
(23) To borrow money temporarily from the water development fund, for the purposes of
this chapter, and to implement its plans and programs relating to reservoir development, exclusive
of the acquisition of sites for the development of surface reservoirs, in anticipation of revenue or
federal aid; and
1. (24) To enter into contracts and/or agreements with such departments, divisions, agencies,
2. or boards of the state as are directed by the governor to regulate, manage, or perform related
3. functions on any lands or waters acquired under the provisions of the Big River — Wood River
4. Reservoir Site Acquisition Act (P.L. of 1964, chapter 133); and
5. (2524) To compensate the departments, divisions, agencies, or boards from the water
6. development fund in an amount equal to the cost of providing the functions or services as are
7. directed to be performed by the governor. The compensation shall be mandatory and shall be
8. provided according to procedures established by the department of administration.
9. (b) The board as a body politic and corporate and public instrumentality created pursuant
10. to this chapter is subject to § 46-15.1-5(1) — (25). The board as the state agency pursuant to chapter
11. 15 of this title is subject to § 46-15.1-5(15) — (25).
12. SECTION 21. Section 46-15.1-19.1 of the General Laws in Chapter 46-15.1 entitled
13. "Water Supply Facilities" is hereby repealed:
14. 46-15.1-19.1. Big River Reservoir — Administration.
15. The Rhode Island water resources board, established pursuant to this chapter and chapter
16. 15 of this title, shall be the only designated agency which will administer those lands acquired for
17. the Big River Reservoir as established under section 23 of chapter 133 of the Public Laws of 1964.
18. The director of the department of environmental management and the director’s authorized agents,
19. employees, and designees shall, together with the water resources board in accordance with the Big
20. River management area land use plan for the lands, protect the natural resources of the Big River
21. Reservoir lands. The lands of the Big River Reservoir are subject to enforcement authority of the
22. department of environmental management, as provided for in chapter 17.1 of title 42, and as
23. provided for in title 20 of the General Laws.
24. SECTION 22. Sections 46-31.1-1, 46-31.1-2 and 46-31.1-3 of the General Laws in Chapter
25. 46-31.1 entitled “The Rhode Island Bays, Rivers and Watersheds Fund” are hereby amended to
26. read as follows:
27. 46-31.1-1. Legislative findings.
28. The general assembly hereby finds and declares as follows:
29. (1) The bays, rivers, and associated watersheds of Rhode Island are unique and unparalleled
30. natural resources that provide significant cultural, ecological, and economic benefit to the state.
31. (2) Pursuant to the provisions of R.I. Const., art. 1, § 17, it is the duty of the general
32. assembly to provide for the conservation of the air, land, water, plant, animal, mineral, and other
33. natural resources of the state; and to adopt all means necessary and proper by law to protect the
34. natural environment of the people of the state by providing adequate resource planning for the

control and regulation of the use of the natural resources of the state; and for the preservation,
regeneration, and restoration of the natural environment of the state.
(3) It is in the best interest of the state and its citizens to preserve, protect, and restore our
bays, rivers, lakes, and associated watersheds.
(4) Sixty percent (60%) of the watershed of Narragansett Bay is within Massachusetts,
almost all of the watershed of Mount Hope Bay is within Massachusetts, and five percent (5%) of
the watershed of Little Narragansett Bay is within Connecticut; further, a cluster of water-related
economic interests spans the three (3) states.
(5) There is a need to foster effective management, preservation, restoration, and
monitoring of the bays, rivers, lakes, and watersheds; and the promotion of sustainable economic
development of businesses that rely directly or indirectly on the bays, rivers, and watersheds.
46-31.1-2. Definitions.
As used in this chapter, unless the context clearly indicates otherwise:
(1) “Bays” means the estuaries including Narragansett Bay, Mount Hope Bay, Greenwich
Bay, Little Narragansett Bay, the coastal ponds, the Sakonnet River, and Rhode Island territorial
waters that extend seaward three geographical miles from the shoreline including the area around
Block Island.
(2) “Coordination” means to harmonize in a common action or effort and/or to function in
a complementary manner.
(3) “Lake” or “pond” means a place, natural or manmade, located wholly or partly within
the State of Rhode Island, where open standing or slowly moving water is present for at least six
(6) months of the year. For the purposes of this chapter, “lake” or “pond” shall exclude commercial
or industrial waterbodies created for the purpose of providing cooling water, concrete or poly-lined
waterbodies, and construction dewatering basins.
(34) “River” means a flowing body of water or estuary or a section, portion, or tributary
thereof, including, but not limited to, streams, creeks, brooks, ponds, and small lakes.
(45) “Water cluster” means an economically interconnected grouping of businesses,
institutions, and people relying directly or indirectly on the bays, rivers, and watersheds including,
but not limited to, the following sectors:
(i) Recreation, tourism, and public events;
(ii) Fisheries and aquaculture;
(iii) Boat and ship building;
(iv) Boating-related businesses;
(v) Transportation;

(vi) Military;
(vii) Research; and
(viii) Technology development and education.
(56) “Watershed” means a land area which because of its topography, soil type, and
drainage patterns acts as a collector of raw waters which regorge or replenish rivers and existing or
planned public water supplies.
46-31.1-3. Bays, Rivers and Watersheds Fund.
(a) There is hereby established a restricted receipt account within the Department of
Environmental Management to be called the Bays, Rivers and Watersheds Fund;
(b) The fund shall consist of any funds which the state may from time to time appropriate,
as well as money received as gifts, grants, bequests, donations or other funds from any public or
private sources, as well as all fees collected pursuant to § 46-23-1(f)(2) for the leasing of submerged
lands for transatlantic cables, and all fees collected pursuant to chapter 12.11 of this title for the
disposal of septage;
(c) All funds, monies, and fees collected pursuant to this section shall be deposited in the
Bays, Rivers and Watersheds Fund, and shall be utilized by the Department of Environmental
Management consistent with the purposes of § 46-23.2-1 entitled, “The Comprehensive Watershed
and Marine Monitoring Act of 2004,” § 46-12 chapter 12 of title 46 entitled, “Water Pollution,”
chapter 33 of title 46 entitled, “Freshwater Lake Management Program,” and chapter 6.2 of title 42
entitled “Resilient Rhode Island Act of 2014 Climate Change Coordination Council2021 Act on
Climate.” All expenditures from the fund shall be subject to appropriation by the general assembly.
SECTION 23. Sections 46-33-1 and 46-33-2 of the General Laws in Chapter 46-33 entitled
“Freshwater Lake Management Program” are hereby amended to read as follows:
46-33-1. Definitions.
As used in this chapter, unless the context indicates otherwise:
(1) "Aquatic invasive species" means those invasive or non-native species that inhabit
water resources including lakes, ponds, rivers and streams.
(2) "Coordination" means to harmonize in a common action or effort and/or to function in
a complementary manner.
(3) "Department" means the Rhode Island department of environmental management.
(4) "Invasive species" means an alien species whose introduction does or is likely to cause
economic or environmental harm, or harm to human health.
(5) "Lake" or "pond" means a place, natural or manmade, located wholly or partly within
the State of Rhode Island, where open standing or slowly moving water shall be present for at least

six (6) months of the year.
(6) "Lake association" means an association, club or other organization, formed and
registered in Rhode Island, which has responsibility for stewardship and management of a
freshwater lake or pond.
(7) "Non-native species" means a species of plant, animal, or microbe that is:
(i) Introduced to a country or region where it is not native;
(ii) Is reproducing and spreading without human cultivation; and
(iii) Is causing harm to native species or the areas in which they live.
(8) "Rhode Island lake management fund" means the fund established by § 46-33-3.
46-33-2. Rhode Island lake management program – Established.
(a) The department shall develop and implement a lake management program. The program
shall include the following elements:
(1) Field surveys and mapping to document the presence of aquatic invasive species in
freshwaters;
(2) Development and provision of guidance and technical assistance to lake associations,
watershed organizations and municipalities interested in undertaking lake management actions;
(3) Coordination of the implementation of lake management actions, where appropriate;
(4) Oversight of lake management policy and program development;
(5) Distribution of financial assistance for lake management, including control of aquatic
invasive plants, as resources allow, including such sums as appropriated by the general assembly
from the Bays, Rivers and Watersheds Fund established by § 46-31.1-3; and
(6) Other activities consistent with the powers and duties assigned to the department in §

23 42-17.1-2(34).

(b) Upon receipt of funding, the department shall establish procedures and rules for the
distribution of lake management grants consistent with the following provisions:
(1) Entities eligible to apply for assistance shall include lake associations, watershed
associations, municipal governments and other nonprofit, non-governmental
environmental and conservation organizations.
(2) Projects involving lakes and ponds located wholly within a privately owned property
and that lack public access to the waterbody are not eligible for assistance.
(3) Projects involving lakes and ponds that lack public access, excepting those excluded in
subsection (b)(2) of this section, may be eligible to apply for financial assistance provided the
department determines that active management is necessary to protect publicly accessible
freshwater resources.
1. (4) Projects shall be solicited through a publicly advertised process.
2. (5) Projects shall require a matching contribution of funds.
3. (6) Eligible projects are determined by the department to be technically sound and
4. appropriate to control or mitigate an existing aquatic invasive species management, water quality
5. or aquatic habitat concern.
6. (7) Funding is used to design and implement specific lake management actions.
7. SECTION 24. This article shall take effect upon passage, except section 1, which, upon
8. approval of the voters, shall be effective on January 1, 2027; and section 3, which shall take effect
9. on July 1, 2026.

ARTICLE 4
RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS
SECTION 1. This article shall serve as the joint resolutions of approval required pursuant
to Rhode Island Law § 35-18-1, et seq. for the financing and/or the guarantee of the below described
projects.
SECTION 2. Rhode Island College – Residential Life Renovations – Auxiliary Enterprise
WHEREAS, the Council on Postsecondary Education and Rhode Island College
(“College”) are proposing a project which involves the renovation of five (5) residence halls on the
College campus; and
WHEREAS, the College is committed to providing adequate and suitable housing for its
students that will attract undergraduate resident students to the College; and
WHEREAS, the renovations will address improvements to critical infrastructure for
continued occupancy of the five (5) residency halls, and the aesthetic improvements to be made
will enhance the on-campus experience for the resident students; and
WHEREAS, the College engaged a qualified architectural firm, which completed an
analysis on the condition of these residence halls.
WHEREAS, the project consists of the renovation and replacement of building envelopes,
elevators, mechanical systems, fire alarms, sprinklers, and other improvements needed to improve
the residential sector of the campus, which project is included in the College Capital Improvement
Plan; and
WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the
General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island
and other public agencies of certain obligations including financing guarantees or other agreements;
and
WHEREAS, the costs associated with this auxiliary enterprise project will be financed
through Rhode Island Health and Education Building Corporation (RIHEBC) revenue bonds, with
an expected term of twenty (20) years; and
WHEREAS, the total project cost associated with the completion of this project and
proposed financing method is twenty million six hundred thousand dollars ($20,600,000), including
capitalized interest, if any, and associated costs of financing. Debt service payments would be
supported by revenues derived from the College’s Residential Life auxiliary student fees, and total
debt service on the bonds is not expected to exceed one million eight hundred twenty-five thousand
dollars ($1,825,000) annually and thirty-six million five hundred thousand dollars ($36,500,000)
in the aggregate based on an average interest rate of six percent (6%) and a twenty (20) year term;

now, therefore be it
RESOLVED, that this General Assembly hereby approves financing in an amount not to
exceed totals debt service payments of thirty-six million five hundred thousand dollars
($36,500,000) for the residential life renovations project on the College campus; and be it further
RESOLVED, that this joint resolution shall take effect upon passage.
SECTION 3. University of Rhode Island – Repaving and Hardscape Improvements
WHEREAS, the University of Rhode Island Board of Trustees and the University of Rhode
Island (“University”) are proposing a project which involves the re-pavement and reconstruction
of major parking facilities, internal roadways and walkways, and associated infrastructure on the
University’s Kingston, Narragansett Bay, and W. Alton Jones campuses; and
WHEREAS, the project and its proposed funding have been duly reviewed and approved
by the University of Rhode Island Board of Trustees as part of the FY 2027–2031 Capital
Improvement Plan; and
WHEREAS, the University has made progress in the improvement of its extensive
inventory of paved surfaces on its campuses, the scope of repaving and reconstruction of major
parking facilities, internal roadways and walkways, and associated infrastructure is substantial and
ongoing; and
WHEREAS, a recent comprehensive campus plan recommends the redevelopment of
campus roadways, allowing safe travel for pedestrians, cyclists, vehicles, and other modes of travel;
and
WHEREAS, the design and execution of this comprehensive plan will improve the
campus’s environmental impact; and
WHEREAS, these timely project commitments serve the objectives of both the University
and the local community; and
WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the
General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island
and other public agencies of certain obligations, including financing guarantees or other
agreements; and
WHEREAS, the design and paving work will be financed through Rhode Island Health
and Education Building Corporation revenue bonds, with an expected term of twenty (20) years in
the amount of twenty million dollars ($20,000,000); and
WHEREAS, the project cost associated with completion of the project and the proposed
financing method is twenty million dollars ($20,000,000), including the cost of issuance. Debt
Service payments would be supported by both the University’s unrestricted general revenues and

enterprise funding from the University’s parking services operation. Total debt service on the bonds
is not expected to exceed one million seven hundred forty-three thousand seven hundred fifty
dollars ($1,743,750) annually and thirty-four million eight hundred seventy-five thousand dollars
($34,875,000) in the aggregate based on an average interest rate of six percent (6%); now, therefore,
be it
RESOLVED, that this General Assembly hereby approves financing in an amount not to
exceed total debt service payments of thirty-four million eight hundred seventy-five thousand
dollars ($34,875,000) for the repaving and hardscape improvements projects at the University of
Rhode Island; and be it further
RESOLVED, that this Joint Resolution shall take effect upon passage.
SECTION 4. University of Rhode Island – Automotive and Administrative Services
WHEREAS, the University of Rhode Island Board of Trustees and the University of Rhode
Island (“University”) are proposing a project which provides proper working space for
“Automotive and Administrative Mail and Printing Services” in the University’s service sector;
and
WHEREAS, the University has made progress in the improvement of its service center to
align with the improvements made to the academic, research, and student life facilities; and
WHEREAS, the project and its proposed funding have been duly reviewed and approved
by the University of Rhode Island Board of Trustees as part of the FY 2027–2031 Capital
Improvement Plan; and
WHEREAS, the design and execution of this project will improve the delivery of the
associated services to the campus; and
WHEREAS, the individual projects may be delivered in a phased approach; and
WHEREAS, these timely project commitments serve the objectives of the University; and
WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the
General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island
and other public agencies of certain obligations, including financing guarantees or other
agreements; and
WHEREAS, the design and paving work will be financed through Rhode Island Health
and Education Building Corporation revenue bonds, with an expected term of twenty (20) years in
the amount of fourteen million four hundred thousand dollars ($14,400,000); and
WHEREAS, the project cost associated with completion of the project and the proposed
financing method is fourteen million four hundred thousand dollars ($14,400,000), including the
cost of issuance. Debt Service payments would be supported by the University’s unrestricted

general revenues. Total debt service on the bonds is not expected to exceed one million two hundred
fifty-seven thousand five hundred dollars ($1,257,500) annually and twenty-five million one
hundred fifty thousand dollars ($25,150,000) in the aggregate based on an average interest rate of
six percent (6%); now, therefore, be it
RESOLVED, that this General Assembly hereby approves financing in an amount not to
exceed total debt service payments of twenty-five million one hundred fifty thousand dollars
($25,150,000) for the Automotive and Administrative Services project at the University; and be it
further
RESOLVED, that this Joint Resolution shall take effect upon passage.
SECTION 5. This article shall take effect upon passage.
1. ARTICLE 5
2. RELATING TO TAXES AND FEES
3. SECTION 1. Title 44 of the General Laws entitled “Taxation” is hereby amended by
4. adding thereto the following chapter:
5. CHAPTER 6.6
6. Rhode Island Tax Amnesty Act of 2026
7. 44-6.6-1. Short title.
8. This chapter shall be known as the “Rhode Island Tax Amnesty Act of 2026.”
9. 44-6.6-2. Definitions.
10. As used in this chapter, the following terms have the meaning ascribed to them in this
11. section, except when the context clearly indicates a different meaning:
12. (1) "Taxable period" means any period for which a tax return is required by law to be filed
13. with the tax administrator.
14. (2) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed
15. by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by
16. the tax administrator.
17. 44-6.6-3. Establishment of tax amnesty.
18. (a) The tax administrator shall establish a tax amnesty program for all taxpayers owing any
19. tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and
20. collected by the tax administrator. Amnesty tax return forms shall be developed by the tax
21. administrator and shall provide that the taxpayer clearly specify the tax due and the taxable period
22. for which amnesty is being sought by the taxpayer.
23. (b) The amnesty program shall be conducted for a seventy-five (75) day period ending on
  
  24 February 15, 2027. The amnesty program shall provide that, upon written application by a taxpayer
  1. and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode
  2. Island for any taxable period ending on or before to December 31, 2025, the tax administrator shall
  3. not seek to collect any penalties that may be applicable and shall not seek the civil or criminal
  4. prosecution of any taxpayer for the taxable period for which amnesty has been granted. Amnesty
  5. shall be granted only to those taxpayers applying for amnesty during the amnesty period who have
  6. paid the tax and interest due upon filing the amnesty tax return, or who have entered into an
  7. installment payment agreement for reasons of financial hardship and upon terms and conditions set
  8. by the tax administrator. In the case of the failure of a taxpayer to pay any installment due under
  9. the agreement, such an agreement shall cease to be effective and the balance of the amounts
  10. required to be paid thereunder shall be due immediately. Amnesty shall be granted for only the
  1. taxable period specified in the application and only if all amnesty conditions are satisfied by the
  2. taxpayer.
  3. (c) The provisions of this section shall include a taxable period for which a bill or notice
  4. of deficiency determination has been sent to the taxpayer.
  5. (d) Amnesty shall not be granted to taxpayers who are under any criminal investigation or
  6. are a party to any civil or criminal proceeding pending in any court for fraud in relation to any state
  7. tax imposed by the law of the state and collected by the tax administrator.
  8. 44-6.6-4. Interest under tax amnesty.
  9. Notwithstanding any provision of law to the contrary, interest on any taxes paid for periods
  10. covered under the amnesty provisions of this chapter shall be computed at the rate imposed under
  11. § 44-1-7, reduced by twenty-five percent (25%).
  12. 44-6.6-5. Implementation.
  13. Notwithstanding any provision of law to the contrary, the tax administrator may do all
  14. things necessary in order to provide for the timely implementation of this chapter, including, but
  15. not limited to, procurement of printing and other services and expenditure of appropriated funds.
  16. 44-6.6-6. Disposition of monies.
  17. All monies collected pursuant to any tax imposed by the state of Rhode Island under the
  18. provisions of this chapter shall be accounted for separately and paid into the general fund.
  19. 44-6.6-7. Analysis of amnesty program by tax administrator.
  20. The tax administrator shall provide an analysis of the amnesty program to be posted on its
  21. website by April 30, 2027. The analysis shall include revenues received by tax source,
  22. distinguishing between the tax collected and interest collected for each source. In addition, the
  23. analysis shall further identify the amounts that are new revenues from those already included in the
  24. general revenue receivable taxes, defined under generally accepted accounting principles and the
  25. state's audited financial statements.
  26. 44-6.6-8. Rules and regulations.
  27. The tax administrator may promulgate such rules and regulations as are necessary to
  28. implement the provisions of this chapter.
  29. SECTION 2. Sections 44-11-2.3 and 44-11-11 of the General Laws in Chapter 44-11
  30. entitled “Business Corporation Tax” are hereby amended to read as follows:
  31. 44-11-2.3. Pass-through entities — Election to pay state income tax at the entity level.
  32. (a) Definitions. As used in this section:
  33. (1) “Election” means the annual election to be made by the pass-through entity by filing
  34. the prescribed tax form and remitting the appropriate tax.
    1. (2) “Net income” means the net ordinary income, net rental real estate income, other net
    2. rental income, guaranteed payments, and other business income less specially allocated
    3. depreciation and deductions allowed pursuant to § 179 of the United States Revenue Code (26
    4. U.S.C. § 179), all of which would be reported on federal tax form schedules C and E. Net income
    5. for purposes of this section does not include specially allocated investment income or any other
    6. types of deductions.
    7. (3) “Owner” means an individual who is a shareholder of an S Corporation; a partner in a
    8. general partnership, a limited partnership, or a limited liability partnership; a member of a limited
    9. liability company, a beneficiary of a trust; or a sole proprietor.
    10. (4) “Pass-through entity” means a corporation that for the applicable tax year is treated as
    11. an S Corporation under I.R.C. 1362(a) (26 U.S.C. § 1362(a)), or a general partnership, limited
    12. partnership, limited liability partnership, trust, limited liability company or unincorporated sole
    13. proprietorship that for the applicable tax year is not taxed as a corporation for federal tax purposes
    14. under the state’s regulations.
    15. (5) “State tax credit” means the amount of tax paid by the pass-through entity at the entity
    16. level that is passed through to an owner on a pro rata basis. For tax years beginning on or after
  17 January 1, 2025, “state tax credit” means ninety percent (90%) of the amount of tax paid by the
  1. pass-through entity at the entity level that is passed through to an owner on a pro rata basis.
  2. (b) Elections.
  3. (1) For tax years beginning on or after January 1, 2019, until the tax year beginning January
  4. 1, 2027 a pass-through entity may elect to pay the state tax at the entity level at the rate of five and
  5. ninety-nine hundredths percent (5.99%).
  6. (2) For tax years beginning on or after January 1, 2027, a pass-through entity may elect to
  7. pay the state tax at the entity level at the rate of eight and ninety-nine hundredths percent (8.99%).
  8. (2) (3) If a pass-through entity elects to pay an entity tax under this subsection, the entity
  9. shall not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident
  10. owners. In that instance, the entity shall not have to comply with the provisions of § 44-11-2.2
  11. regarding withholding on non-resident owners.
  12. (c) Reporting.
  13. (1) The pass-through entity shall report the pro rata share of the state income taxes paid by
  14. the entity which sums will be allowed as a state tax credit for an owner on his or her personal
  15. income tax return.
  16. (2) The pass-through entity shall also report the pro rata share of the state income taxes
  17. paid by the entity as an income (addition) modification to be reported by an owner on his or her
  1. personal income tax returns
  2. (d) State tax credit shall be the amount of tax paid by the pass-through entity, at the entity
  3. level, which is passed through to the owners, on a pro rata basis. For tax years beginning on or after
  4 January 1, 2025, the state tax credit shall be ninety percent (90%) of the amount of tax paid by the
  1. pass-through entity, at the entity level, which is passed through to the owners, on a pro rata basis.
  2. (e) A similar type of tax imposed by another state on the owners’ income paid at the state
  3. entity level shall be deemed to be allowed as a credit for taxes paid to another jurisdiction in
  4. accordance with the provisions of § 44-30-18.
  5. (f) “Combined reporting” as set forth in § 44-11-4.1 shall not apply to reporting under this
  6. section.
  7. 44-11-11. “Net income” defined.
  8. (a)(1) “Net income” means, for any taxable year and for any corporate taxpayer, the taxable
  9. income of the taxpayer for that taxable year under the laws of the United States, with the additions
  10. and deductions specified in this section. plus:
  11. (b) Additions increasing taxable income. There shall be added to taxable income:
  12. (i)(1) Any interest not included in the taxable income;
  13. (ii)(2) Any specific exemptions;
  14. (iii)(3) The tax imposed by this chapter;
  15. (iv)(4) For any taxable year beginning on or after January 1, 2020, the amount of any
  16. Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by the
  17. Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act,
  18. 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent that
  19. the amount of the loan forgiven exceeds $250,000; and minus:
  20. (5) For the taxable year beginning on or before January 1, 2025, the amount of any income,
  21. deduction, or allowance that would be subject to federal income tax but for the Congressional
  22. enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment. The
  23. enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment and any
  24. Internal Revenue Service changes to forms, regulations, and/or processing which go into effect
  25. during the current tax year or within six (6) months of the beginning of the next tax year shall be
  26. deemed grounds for the promulgation of emergency rules and regulations under § 42-35-2.10 to
  27. effectuate the purpose of preserving the Rhode Island tax base under Rhode Island law with respect
  28. to the One Big Beautiful Bill Act or any other similar Congressional enactment; and
  29. (6) For any taxable year beginning on or after January 1, 2026, the amount of the deduction
  30. taken for domestic research and experimental expenditures under 26 U.S.C. § 174A less the amount
  1. of the deduction that would have been allowed as a deduction for domestic research and
  2. experimental expenditures under 26 U.S.C. § 174 immediately prior to the enactment of H.R.1
  3. (Pub. L. 119–21).
  4. (c) Deductions reducing taxable income. There shall be subtracted from taxable income:
  5. (v)(1) Interest on obligations of the United States or its possessions, and other interest
  6. exempt from taxation by this state;
  7. (vi)(2) The federal net operating loss deduction;
  8. (vii)(3) For any taxable year beginning on or after January 1, 2025, in the case of a taxpayer
  9. that is licensed in accordance with chapters 28.6 and/or 28.11 of title 21, the amount equal to any
  10. expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed under
  11. 26 U.S.C. § 280E; and
  12. (viii) For the taxable year beginning on or before January 1, 2025, the amount of any
  13. income, deduction, or allowance that would be subject to federal income tax but for the
  14. Congressional enactment of the One Big Beautiful Bill Act or any other similar Congressional
  15. enactment. The enactment of the One Big Beautiful Bill Act or any other similar Congressional
  16. enactment and any Internal Revenue Service changes to forms, regulations, and/or processing
  17. which go into effect during the current tax year or within six (6) months of the beginning of the
  18. next tax year shall be deemed grounds for the promulgation of emergency rules and regulations
  19. under § 42-35-2.10 to effectuate the purpose of preserving the Rhode Island tax base under Rhode
  20. Island law with respect to the One Big Beautiful Bill Act or any other similar Congressional
  21. enactment.
  22. (4) For any taxable year beginning on or after January 1, 2026, the amount as determined
  23. by the tax administrator required to be added back in a prior year that would have been allowed
  24. under 26 U.S.C. § 174A as enacted in H.R.1 (Pub. L. 119–21) on July 4, 2025, but would not have
  25. been allowed as a deduction under 26 U.S.C. § 174 immediately prior to its enactment. At no time
  26 may the cumulative modification amount for each amortized expenditure exceed one hundred
  1. percent (100%) of said expenditure’s expense amount.
  2. (2)(d) All binding federal elections made by or on behalf of the taxpayer applicable either
  3. directly or indirectly to the determination of taxable income shall be binding on the taxpayer except
  4. where this chapter or its attendant regulations specifically modify or provide otherwise. Rhode
  5. Island taxable income shall not include the “gross-up of dividends” required by the federal Internal
  6. Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the
  7. foreign tax credit.
  8. (b)(e) A net operating loss deduction shall be allowed, which shall be the same as the net
    1. operating loss deduction allowed under 26 U.S.C. § 172, except that:
    2. (1) Any net operating loss included in determining the deduction shall be adjusted to reflect
    3. the inclusions and exclusions from entire net income required by subsection (a) of this section and
    4. § 44-11-11.1;
    5. (2) The deduction shall not include any net operating loss sustained during any taxable year
    6. in which the taxpayer was not subject to the tax imposed by this chapter; and
    7. (3) Limitation on 26 U.S.C. § 172 deduction.
    8. (i) The deduction shall not exceed the deduction for the taxable year allowable under 26
    9. U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other
    10. taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the
    11. five (5) succeeding taxable years; and
    12. (ii) For any taxable year beginning on or after January 1, 2025, the deduction shall not
    13. exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided that, the
    14. deduction for a taxable year may not be carried back to any other taxable year for Rhode Island
    15. purposes, but shall only be allowable on a carry forward basis for the twenty (20) succeeding
    16. taxable years.
    17. (c)(f) “Domestic international sales corporations” (referred to as DISCs), for the purposes
    18. of this chapter, will be treated as they are under federal income tax law and shall not pay the amount
    19. of the tax computed under § 44-11-2(a). Any income to shareholders of DISCs is to be treated in
    20. the same manner as it is treated under federal income tax law as it exists on December 31, 1984.
    21. (d)(g) A corporation that qualifies as a “foreign sales corporation” (FSC) under the
    22. provisions of subchapter N, 26 U.S.C. § 861 et seq., and that has in effect for the entire taxable year
    23. a valid election under federal law to be treated as a FSC, shall not pay the amount of the tax
    24. computed under § 44-11-2(a). Any income to shareholders of FSCs is to be treated in the same
    25. manner as it is treated under federal income tax law as it exists on January 1, 1985.
    26. (e)(h) For purposes of a corporation’s state tax liability, any deduction to income allowable
    27. under 26 U.S.C. § 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer
    28. for at least seven years. The division of taxation shall promulgate, in its discretion, rules and
    29. regulations relative to the accelerated application of deductions under 26 U.S.C. § 1400Z-2(c).
    30. SECTION 3. Effective September 1, 2026, Chapter 44-20 of the General Laws entitled
    31. “Cigarette, Other Tobacco Products, and Electronic Nicotine-Delivery System Products” is hereby
    32. amended by adding thereto the following section:
    33. 44-20-12.8. Floor stock tax on cigarettes and stamps.
    34. (a) Each person engaging in the business of selling cigarettes at retail in this state shall pay
      1. a tax or excise to the state for the privilege of engaging in that business during any part of the
      2. calendar year 2026. In calendar year 2026, the tax shall be measured by the number of cigarettes
      3. held by the person in this state at 12:01 a.m. on September 1, 2026, and is computed at the rate of
      4. thirty-seven and one-half (37.5) mills for each cigarette on September 1, 2026.
      5. (b) Each distributor licensed to do business in this state pursuant to this chapter shall pay a
      6. tax or excise to the state for the privilege of engaging in that business during any part of the calendar
      7. year 2026. The tax is measured by the number of stamps, whether affixed or to be affixed to
      8. packages of cigarettes, as required by § 44-20-28. In calendar year 2026 the tax is measured by the
      9. number of stamps, whether affixed or to be affixed, held by the distributor at 12:01 a.m. on
  10 September 1, 2026, and is computed at the rate of thirty-seven and one-half (37.5) mills per
cigarette in the package to which the stamps are affixed or to be affixed.
(c) Each person subject to the payment of the tax imposed by this section shall, on or before

13 September 15, 2026, file a return, under oath or certified under the penalties of perjury, with the

tax administrator on forms furnished by him or her, showing the amount of cigarettes and the
number of stamps in that person's possession in this state at 12:01 a.m. on September 1, 2026, as
described in this section above, and the amount of tax due, and shall at the time of filing the return
pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to
make a return containing the information required by the tax administrator. Failure to complete and
file the return and pay the tax to the tax administrator shall result in an assessment being issued to
the taxpayer as determined by the tax administrator and the taxpayer is not entitled to a hearing
with respect to any assessment issued under this subsection.
(d) The tax administrator may prescribe rules and regulations, not inconsistent with law,
regarding the assessment and collection of the tax imposed by this section.

24 SECTION 4. Effective September 1, 2026, sections 44-20-12, 44-20-13, 44-20-13.2, and

44-20-19 of the General Laws in Chapter 44-20 entitled “Cigarette, Other Tobacco Products, and
Electronic Nicotine-Delivery System Products” are hereby amended to read as follows:
44-20-12. Tax imposed on cigarettes sold.
A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax
to be evidenced by stamps, which may be affixed only by licensed distributors to the packages
containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this
chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under
this chapter. The tax is at the rate of two hundred twenty-five (225) two hundred sixty-two and one-
half (262.5) mills for each cigarette.
44-20-13. Tax imposed on unstamped cigarettes.

A tax is imposed at the rate of two hundred twenty-five (225) two hundred sixty-two and
one-half (262.5) mills for each cigarette upon the storage or use within this state of any cigarettes
not stamped in accordance with the provisions of this chapter in the possession of any consumer
within this state.
44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, pipe
tobacco products, and electronic nicotine-delivery products.
(a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, pipe tobacco
products, and electronic nicotine-delivery system products sold, or held for sale in the state by any
person, the payment of the tax to be accomplished according to a mechanism established by the
administrator, division of taxation, department of revenue. The tax imposed by this section shall be
as follows:
(1) For all other tobacco products, smokeless tobacco, cigars, and pipe tobacco products,
at the rate of eighty percent (80%) of the wholesale cost of other tobacco products, cigars, pipe
tobacco products, and smokeless tobacco other than snuff.
(2) Notwithstanding the eighty percent (80%) rate in subsection (a)(1) of this section, in
the case of cigars, the tax shall not exceed fifty cents ($.50) for each cigar. Effective September 1,
2026, notwithstanding the eighty percent (80%) rate in subsection (a)(1) of this section, in the case
of cigars, the tax shall not exceed two dollars ($2.00) for each cigar.
(3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like
rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net weight
as listed by the manufacturer; provided, however, that any product listed by the manufacturer as
having a net weight of less than 1.2 ounces shall be taxed as if the product has a net weight of 1.2
ounces.
(4) Effective January 1, 2025:
(i) For electronic nicotine-delivery system products that are prefilled, sealed by the
manufacturer, and not refillable, at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid
and/or e-liquid products contained therein; and
(ii) For any other electronic nicotine-delivery system products, at the rate of ten percent
(10%) of the wholesale cost of such products, whether or not sold at wholesale, and if not sold,
then at the same rate upon the use by the wholesaler.
(iii) Existing Inventory Floor Tax. For all electronic nicotine-delivery system products held
by licensed electronic nicotine-delivery system products retailers as of January 1, 2025: Each
person engaging in the business of selling electronic nicotine-delivery system products at retail in
this state shall pay a tax measured by the volume of e-liquid and/or e-liquid products contained in

electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not
refillable and the wholesale cost of all other electronic nicotine-delivery system products held by
the person in this state at 12:01 a.m. on January 1, 2025, and is computed for electronic nicotine-
delivery system products that are prefilled, sealed by the manufacturer, and not refillable, at the
rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein
and for any other electronic nicotine-delivery system products at the rate of ten percent (10%) of
the wholesale cost of such products on January 1, 2025. Each person subject to the payment of the
tax imposed by this section shall, on or before January 16, 2025, file a return, under oath or certified
under the penalties of perjury, with the administrator on forms furnished by the administrator,
showing the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery
system products which are prefilled, sealed by the manufacturer, and not refillable and the
wholesale cost of all other electronic nicotine-delivery system products in that person’s possession
in this state at 12:01 a.m. on January 1, 2025, as described in this section, and the amount of tax
due, and shall at the time of filing the return pay the tax to the administrator. Failure to obtain forms
shall not be an excuse for the failure to make a return containing the information required by the
administrator.
(iv) For all electronic nicotine-delivery system products sold by licensed electronic
nicotine-delivery system products distributors, manufacturers, and/or importers in Rhode Island as
of January 1, 2025: Any person engaging in the business of distributing at wholesale electronic
nicotine-delivery system products in this state shall pay a tax measured by the volume of e-liquid
and/or e-liquid products contained in electronic nicotine-delivery system products that are prefilled,
sealed by the manufacturer, and not refillable computed at the rate of fifty cents per milliliter
($0.50/mL) of the e-liquid and/or e-liquid products contained therein and for all other electronic
nicotine-delivery system products at the rate of ten percent (10%) of the wholesale cost of such
products.
(b)(1) Prior to January 1, 2025, any dealer having in the dealer’s possession any other
tobacco products with respect to the storage or use of which a tax is imposed by this section shall,
within five (5) days after coming into possession of the other tobacco products in this state, file a
return with the tax administrator in a form prescribed by the tax administrator. The return shall be
accompanied by a payment of the amount of the tax shown on the form to be due. Records required
under this section shall be preserved on the premises described in the relevant license in such a
manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized
personnel of the administrator.

(2) Effective January 1, 2025, all other tobacco products, except for cigars, and electronic

nicotine-delivery system products sold at wholesale in Rhode Island must be sold by a Rhode Island
licensed distributor, manufacturer, or importer, and purchases of other tobacco products, except for
cigars, and/or electronic nicotine-delivery system products, from an unlicensed distributor,
manufacturer, or importer are prohibited. Any other tobacco products, except for cigars, and/or
electronic nicotine-delivery system products purchased and/or obtained from an unlicensed person
shall be subject to the terms of this chapter including, but not limited to, § 44-20-15 and shall be
taxed pursuant to this section.
(3) Effective January 1, 2025, any dealer having in the dealer’s possession any cigars with
respect to the storage or use of which a tax is imposed by this section shall, within five (5) days
after coming into possession of cigars in this state, file a return with the tax administrator in a form
prescribed by the tax administrator. The return shall be accompanied by a payment of the amount
of the tax shown on the form to be due. Records required under this section shall be preserved on
the premises described in the relevant license in such a manner as to ensure permanency and
accessibility for inspection at reasonable hours by authorized personnel of the administrator.
(c) Existing Inventory Floor Tax.
(1) For all nicotine products defined in § 44-20-1 as other tobacco products but not
previously taxed as other tobacco products held by licensed retailers as of October 1, 2025: Each
person engaging in the business of selling nicotine products at retail in this state shall pay a tax at
the rate of eighty percent (80%) of the wholesale cost of such products on October 1, 2025. Each
person subject to the payment of the tax imposed by this section shall, on or before October 16,
2025, file a return, under oath or certified under the penalties of perjury, with the administrator on
forms furnished by the administrator, showing the wholesale cost of all nicotine products not

previously taxed as other tobacco products in that person's possession in this state at 12:01 a.m. on

24 October 1, 2025, as described in this section, and the amount of tax due, and shall at the time of

filing the return pay the tax to the administrator. Failure to obtain forms shall not be an excuse for
the failure to make a return containing the information required by the administrator.
(2) For all nicotine products defined in § 44-20-1 as other tobacco products but not
previously taxed as other tobacco products held by licensed distributors, manufacturers, and/or
importers in Rhode Island as of October 1, 2025: Each person engaging in the business of
distributing at wholesale nicotine products defined in § 44-20-1 as other tobacco products but not
previously taxed as other tobacco products in this state shall pay a tax at the rate of eighty percent
(80%) of the wholesale cost of such products on October 1, 2025. Each person subject to the
payment of the tax imposed by this section shall, on or before October 16, 2025, file a return, under
oath or certified under the penalties of perjury, with the administrator on forms furnished by the

administrator, showing the wholesale cost of all nicotine products not previously taxed as other
tobacco products in that person's possession in this state at 12:01 a.m. on October 1, 2025, as
described in this section, and the amount of tax due, and shall at the time of filing the return pay
the tax to the administrator. Failure to obtain forms shall not be an excuse for the failure to make a
return containing the information required by the administrator.
(d) The proceeds collected are paid into the general fund.
44-20-19. Sales of stamps to distributors.
(a) For purchases prior to September 1, 2026, Tthe tax administrator shall sell stamps only
to licensed distributors at a discount. The distributor remits to the division of taxation ninety-eight
and three-fourths percent (98.75%) of the face value of the stamps thereby receiving a discount of
one and one-quarter percent (1.25%) of the face value of the stamps. The ninety-eight and three-
fourths percent (98.75%) remitted to the tax administrator is paid over to the general revenue. For
purchases on or after September 1, 2026, the tax administrator shall sell stamps only to a licensed
distributor and shall not sell stamps at a discount. The one hundred percent (100%) remitted to the
tax administrator is paid over to the general revenue.
(b) The tax administrator may, in his or her discretion, permit a licensed distributor to pay
for the stamps within thirty (30) days after the date of purchase; provided, that a bond satisfactory
to the tax administrator in an amount not less than the sale price of the stamps has been filed with
the tax administrator conditioned upon payment for the stamps. The tax administrator shall keep
accurate records of all stamps sold to each distributor.
SECTION 5. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby
amended by adding thereto the following section:
44-30-104. Child Tax Credit.
(a) Definitions. As used in this section:
(1) “Child” means an individual who is eighteen years of age or under as of December 31
of the tax year.
(2) “Eligible taxpayer” means any natural person domiciled in this state who filed a Rhode
Island state personal income tax return for the tax year.
(b) Child Tax Credit. For tax years beginning on or after January 1, 2027, a tax credit on
the resident tax return of the eligible taxpayer in the amount of three hundred twenty dollars ($320)
shall be allowed for each claimed child where the exemption amount is zero in §44-30-
2.6(c)(3)(C)(II)(2).
(c) In the case of any eligible taxpayer whose adjusted gross income, as modified pursuant
to § 44-30-12, for the taxable year exceeds two hundred sixty-one thousand dollars ($261,000),

the credit amount shall be reduced by the applicable percentage. The term “applicable percentage”
means twenty (20) percentage points for each seven thousand four hundred fifty dollars ($7,450)
(or fraction thereof) by which the eligible taxpayer’s adjusted gross income for the taxable year
exceeds two hundred sixty-one thousand dollars ($261,000).
(d) Adjustment for inflation. The dollar amount contained in subsections (b) and (c) of this
section shall be increased annually by an amount equal to:
(I) Such dollar amount contained in subsections (b) and (c) of this section adjusted for
inflation using a base tax year of 2026, multiplied by;
(II) The cost-of-living adjustment with a base year of 2026.
(III) For the purposes of this section, the cost-of-living adjustment for any calendar year is
the percentage (if any) by which the consumer price index for the preceding calendar year exceeds
the consumer price index for the base year. The consumer price index for any calendar year is the
average of the consumer price index as of the close of the twelve-month (12) period ending on

14 August 31, of such calendar year.

(IV) For the purpose of this section the term “consumer price index” means the last
consumer price index for all urban consumers published by the department of labor. For the purpose
of this section the revision of the consumer price index that is most consistent with the consumer
price index for calendar year 1986 shall be used.
(V) If any increase determined under this section is not a multiple of five dollars ($5.00),
such increase shall be rounded to the next lower multiple of five dollars ($5.00).
SECTION 6. Sections 44-30-2.6 and 44-30-12 of the General Laws in Chapter 44-30
entitled “Personal Income Tax” are hereby amended to read as follows:
44-30-2.6. Rhode Island taxable income — Rate of tax.
(a) “Rhode Island taxable income” means federal taxable income as determined under the
Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-
deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax
Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of
2001 (EGTRRA), and as modified by the modifications in § 44-30-12.
(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on
or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island
taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five
and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002
and thereafter of the federal income tax rates, including capital gains rates and any other special
rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately

prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA);
provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable
year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal
Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a
taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or
her personal income tax liability.
(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative
minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island
alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by
multiplying the federal tentative minimum tax without allowing for the increased exemptions under
the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251
Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year
2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product
to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s
Rhode Island alternative minimum tax.
(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption
amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by
the tax administrator in the manner prescribed for adjustment by the commissioner of Internal
Revenue in 26 U.S.C. § 1(f).
(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode
Island taxable income shall be determined by deducting from federal adjusted gross income as
defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island
itemized-deduction amount and the Rhode Island exemption amount as determined in this section.
(A) Tax imposed.
(1) There is hereby imposed on the taxable income of married individuals filing joint
returns and surviving spouses a tax determined in accordance with the following table:
If taxable income is: The tax is:
Not over $53,150 3.75% of taxable income
Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150
Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500
Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850
Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700
(2) There is hereby imposed on the taxable income of every head of household a tax

determined in accordance with the following table:

1	If taxable income is:	The tax is:
2	Not over $42,650	3.75% of taxable income
3	Over $42,650 but not over $110,100	$1,599.38 plus 7.00% of the excess over $42,650
4	Over $110,100 but not over $178,350	$6,320.88 plus 7.75% of the excess over $110,100
5	Over $178,350 but not over $349,700	$11,610.25 plus 9.00% of the excess over $178,350
6	Over $349,700	$27,031.75 plus 9.90% of the excess over $349,700

(3) There is hereby imposed on the taxable income of unmarried individuals (other than
surviving spouses and heads of households) a tax determined in accordance with the following

9	table:
10		If taxable income is:	The tax is:
11		Not over $31,850	3.75% of taxable income
12		Over $31,850 but not over $77,100	$1,194.38 plus 7.00% of the excess over $31,850
13		Over $77,100 but not over $160,850	$4,361.88 plus 7.75% of the excess over $77,100
14		Over $160,850 but not over $349,700	$10,852.50 plus 9.00% of the excess over $160,850
15		Over $349,700	$27,849.00 plus 9.90% of the excess over $349,700

(4) There is hereby imposed on the taxable income of married individuals filing separate
returns and bankruptcy estates a tax determined in accordance with the following table:

18	If taxable income is:	The tax is:
19	Not over $26,575	3.75% of taxable income
20	Over $26,575 but not over $64,250	$996.56 plus 7.00% of the excess over $26,575
21	Over $64,250 but not over $97,925	$3,633.81 plus 7.75% of the excess over $64,250
22	Over $97,925 but not over $174,850	$6,243.63 plus 9.00% of the excess over $97,925
23	Over $174,850	$13,166.88 plus 9.90% of the excess over $174,850

(5) There is hereby imposed a taxable income of an estate or trust a tax determined in
accordance with the following table:
If taxable income is: The tax is:
Not over $2,150 3.75% of taxable income
Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150
Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000
Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650
Over $10,450 $737.50 plus 9.90% of the excess over $10,450
(6) Adjustments for inflation.
The dollars amount contained in paragraph (A) shall be increased by an amount equal to:
(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by;

(b) The cost-of-living adjustment determined under section (J) with a base year of 1993;
(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making
adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall
be determined under section (J) by substituting “1994” for “1993.”
(B) Maximum capital gains rates.
(1) In general.
If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax
imposed by this section for such taxable year shall not exceed the sum of:
(a) 2.5% of the net capital gain as reported for federal income tax purposes under section

10 26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b).

11 (b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.

12 § 1(h)(1)(c).

13 (c) 6.25% of the net capital gain as reported for federal income tax purposes under 26

14 U.S.C. § 1(h)(1)(d).

15 (d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.

16 § 1(h)(1)(e).

(2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital gain
shall be determined under subdivision 44-30-2.6(c)(2)(A).
(C) Itemized deductions.
(1) In general.
For the purposes of section (2), “itemized deductions” means the amount of federal
itemized deductions as modified by the modifications in § 44-30-12.
(2) Individuals who do not itemize their deductions.
In the case of an individual who does not elect to itemize his deductions for the taxable
year, they may elect to take a standard deduction.
(3) Basic standard deduction.
The Rhode Island standard deduction shall be allowed in accordance with the following
table:
Filing status Amount
Single $5,350
Married filing jointly or qualifying widow(er) $8,900
Married filing separately $4,450
Head of Household $7,850
(4) Additional standard deduction for the aged and blind.

An additional standard deduction shall be allowed for individuals age sixty-five (65) or
older or blind in the amount of $1,300 for individuals who are not married and $1,050 for
individuals who are married.
(5) Limitation on basic standard deduction in the case of certain dependents.
In the case of an individual to whom a deduction under section (E) is allowable to another
taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of:

7 (a) $850;

(b) The sum of $300 and such individual’s earned income;
(6) Certain individuals not eligible for standard deduction.
In the case of:
(a) A married individual filing a separate return where either spouse itemizes deductions;
(b) Nonresident alien individual;
(c) An estate or trust;
The standard deduction shall be zero.
(7) Adjustments for inflation.
Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount
equal to:
(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied
by
(b) The cost-of-living adjustment determined under section (J) with a base year of 1988.
(D) Overall limitation on itemized deductions.
(1) General rule.
In the case of an individual whose adjusted gross income as modified by § 44-30-12
exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the
taxable year shall be reduced by the lesser of:
(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12
over the applicable amount; or
(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for
such taxable year.
(2) Applicable amount.
(a) In general.
For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the
case of a separate return by a married individual)
(b) Adjustments for inflation.

Each dollar amount contained in paragraph (a) shall be increased by an amount equal to:
(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by
(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
(3) Phase-out of Limitation.
(a) In general.
In the case of taxable year beginning after December 31, 2005, and before January 1, 2010,
the reduction under section (1) shall be equal to the applicable fraction of the amount which would
be the amount of such reduction.
(b) Applicable fraction.
For purposes of paragraph (a), the applicable fraction shall be determined in accordance
with the following table:
For taxable years beginning in calendar year The applicable fraction is
2006 and 2007 2/3
2008 and 2009 1/3
(E) Exemption amount.
(1) In general.
Except as otherwise provided in this subsection, the term “exemption amount” means

18 $3,400.

(2) Exemption amount disallowed in case of certain dependents.
In the case of an individual with respect to whom a deduction under this section is allowable
to another taxpayer for the same taxable year, the exemption amount applicable to such individual
for such individual's taxable year shall be zero.
(3) Adjustments for inflation.
The dollar amount contained in paragraph (1) shall be increased by an amount equal to:
(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by
(b) The cost-of-living adjustment determined under section (J) with a base year of 1989.
(4) Limitation.
(a) In general.
In the case of any taxpayer whose adjusted gross income as modified for the taxable year
exceeds the threshold amount shall be reduced by the applicable percentage.
(b) Applicable percentage.
In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the
threshold amount, the exemption amount shall be reduced by two (2) percentage points for each
$2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year

exceeds the threshold amount. In the case of a married individual filing a separate return, the
preceding sentence shall be applied by substituting “$1,250” for “$2,500.” In no event shall the
applicable percentage exceed one hundred percent (100%).
(c) Threshold Amount.
For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with
the following table:
Filing status Amount
Single $156,400
Married filing jointly of qualifying widow(er) $234,600
Married filing separately $117,300
Head of Household $195,500
(d) Adjustments for inflation.
Each dollar amount contained in paragraph (b) shall be increased by an amount equal to:
(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by
(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
(5) Phase-out of limitation.
(a) In general.
In the case of taxable years beginning after December 31, 2005, and before January 1,
2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which
would be the amount of such reduction.
(b) Applicable fraction.
For the purposes of paragraph (a), the applicable fraction shall be determined in accordance
with the following table:
For taxable years beginning in calendar year The applicable fraction is
2006 and 2007 2/3
2008 and 2009 1/3
(F) Alternative minimum tax.
(1) General rule. There is hereby imposed (in addition to any other tax imposed by this
subtitle) a tax equal to the excess (if any) of:
(a) The tentative minimum tax for the taxable year, over
(b) The regular tax for the taxable year.
(2) The tentative minimum tax for the taxable year is the sum of:
(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus
(b) 7.0 percent of so much of the taxable excess above $175,000.

(3) The amount determined under the preceding sentence shall be reduced by the
alternative minimum tax foreign tax credit for the taxable year.
(4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so
much of the federal alternative minimum taxable income as modified by the modifications in § 44-
30-12 as exceeds the exemption amount.
(5) In the case of a married individual filing a separate return, subparagraph (2) shall be
applied by substituting “$87,500” for $175,000 each place it appears.
(6) Exemption amount.
For purposes of this section “exemption amount” means:
Filing status Amount
Single $39,150
Married filing jointly or qualifying widow(er) $53,700
Married filing separately $26,850
Head of Household $39,150
Estate or trust $24,650
(7) Treatment of unearned income of minor children
(a) In general.
In the case of a minor child, the exemption amount for purposes of section (6) shall not
exceed the sum of:
(i) Such child's earned income, plus
(ii) $6,000.
(8) Adjustments for inflation.
The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount
equal to:
(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by
(b) The cost-of-living adjustment determined under section (J) with a base year of 2004.
(9) Phase-out.
(a) In general.
The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount
equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income
of the taxpayer exceeds the threshold amount.
(b) Threshold amount.
For purposes of this paragraph, the term “threshold amount” shall be determined with the
following table:
1. Filing status Amount
2. Single $123,250
3. Married filing jointly or qualifying widow(er) $164,350
4. Married filing separately $82,175
5. Head of Household $123,250
6. Estate or Trust $82,150
7. (c) Adjustments for inflation
8. Each dollar amount contained in paragraph (9) shall be increased by an amount equal to:
9. (i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by
10. (ii) The cost-of-living adjustment determined under section (J) with a base year of 2004.
11. (G) Other Rhode Island taxes.
12. (1) General rule. There is hereby imposed (in addition to any other tax imposed by this
13. subtitle) a tax equal to twenty-five percent (25%) of:
14. (a) The Federal income tax on lump-sum distributions.
15. (b) The Federal income tax on parents' election to report child's interest and dividends.
16. (c) The recapture of Federal tax credits that were previously claimed on Rhode Island
17. return.
18. (H) Tax for children under 18 with investment income.
19. (1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of:
20. (a) The Federal tax for children under the age of 18 with investment income.
21. (I) Averaging of farm income.
22. (1) General rule. At the election of an individual engaged in a farming business or fishing
23. business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of:
24. (a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. §

25 1301].

(J) Cost-of-living adjustment.
(1) In general.
The cost-of-living adjustment for any calendar year is the percentage (if any) by which:
(a) The CPI for the preceding calendar year exceeds
(b) The CPI for the base year.
(2) CPI for any calendar year.
For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer
price index as of the close of the twelve (12) month period ending on August 31 of such calendar
year.
1. (3) Consumer price index.
2. For purposes of paragraph (2), the term “consumer price index” means the last consumer
3. price index for all urban consumers published by the department of labor. For purposes of the
4. preceding sentence, the revision of the consumer price index that is most consistent with the
5. consumer price index for calendar year 1986 shall be used.
6. (4) Rounding.
7. (a) In general.
8. If any increase determined under paragraph (1) is not a multiple of $50, such increase shall
9. be rounded to the next lowest multiple of $50.
10. (b) In the case of a married individual filing a separate return, subparagraph (a) shall be
11. applied by substituting “$25” for $50 each place it appears.
12. (K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer
13. entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to
14. a credit against the Rhode Island tax imposed under this section:

15 (1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.]

(2) Child and dependent care credit;
(3) General business credits;
(4) Credit for elderly or the disabled;
(5) Credit for prior year minimum tax;
(6) Mortgage interest credit;
(7) Empowerment zone employment credit;
(8) Qualified electric vehicle credit.
(L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, a
taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island
tax imposed under this section if the adopted child was under the care, custody, or supervision of
the Rhode Island department of children, youth and families prior to the adoption.
(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits
provided there shall be no deduction based on any federal credits enacted after January 1, 1996,
including the rate reduction credit provided by the federal Economic Growth and Tax
Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be
reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax
purposes shall determine the Rhode Island amount to be recaptured in the same manner as
prescribed in this subsection.
(N) Rhode Island earned-income credit.

(1) In general.
For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-
income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent
(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode
Island income tax.
For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer
entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit
equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the
amount of the Rhode Island income tax.
For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-
income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half
percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the
Rhode Island income tax.
For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-
income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%)
of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island
income tax.
For tax years beginning on or after January 1, 2024, a taxpayer entitled to a federal earned-
income credit shall be allowed a Rhode Island earned-income credit equal to sixteen percent (16%)
of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island
income tax.
(2) Refundable portion.
In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this
section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall
be allowed as follows.
(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2)
refundable earned-income credit means fifteen percent (15%) of the amount by which the Rhode
Island earned-income credit exceeds the Rhode Island income tax.
(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2)
refundable earned-income credit means one hundred percent (100%) of the amount by which the
Rhode Island earned-income credit exceeds the Rhode Island income tax.
(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs
(A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years
thereafter for inclusion in the statute.
1. (3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode
2. Island taxable income” means federal adjusted gross income as determined under the Internal
3. Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-
4. 30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph
5. 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph
6. 44-30-2.6(c)(3)(C).
7. (A) Tax imposed.
8. (I) There is hereby imposed on the taxable income of married individuals filing joint
9. returns, qualifying widow(er), every head of household, unmarried individuals, married individuals
10. filing separate returns and bankruptcy estates, a tax determined in accordance with the following
11. tables:
12. (1) For tax years beginning before January 1, 2027:
13. RI Taxable Income RI Income Tax
14. Over But not over Pay + % on Excess on the amount over
15. $ 0 - $ 55,000 $ 0 + 3.75% $ 0
16. 55,000 - 125,000 2,063 + 4.75% 55,000
17. 125,000 - 5,388 + 5.99% 125,000
18. (2) For tax years beginning on or after January 1, 2027:
19. RI Taxable Income RI Income Tax
20. Over But not over Pay + % on Excess on the amount over
21. $ 0 - $ 55,000 $ 0 + 3.75% $ 0
22. 55,000 - 125,000 2,063 + 4.75% 55,000
23. 125,000 - 648,398 5,388 + 5.99% 125,000
24. 648,398 36,740 + 8.99% 648,398
25. (II) There is hereby imposed on the taxable income of an estate or trust a tax determined in
26. accordance with the following tables:
27. (1) For tax years beginning before January 1, 2027:
28. RI Taxable Income RI Income Tax
29. Over But not over Pay +% on Excess on the amount over
30. $0 - $ 2,230 $0 + 3.75% $ 0
31. 2,230 - 7,022 84 + 4.75% 2,230
32. 7,022 - 312 + 5.99% 7,022
33. (2) For tax years beginning on or after January 1, 2027:
34. RI Taxable Income RI Income Tax

Over But not over Pay + % on Excess on the amount over
$ 0 $ 2,230 $ 0 + 3.75% $ 0
2,230 - 7,022 84 + 4.75% 2,230
7,022 - 36,427 312 + 5.99% 7,022
36,427 - 2,073 + 8.99% 36,427
(B) Deductions:
(I) Rhode Island Basic Standard Deduction.
Only the Rhode Island standard deduction shall be allowed in accordance with the
following table:
Filing status Amount
Single $7,500
Married filing jointly or qualifying widow(er) $15,000
Married filing separately $7,500
Head of Household $11,250
(II) Nonresident alien individuals, estates and trusts are not eligible for standard
deductions.
(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island
purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand
dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage.
The term “applicable percentage” means twenty (20) percentage points for each five thousand
dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable
year exceeds one hundred seventy-five thousand dollars ($175,000).
(C) Exemption Amount:
(I) The term “exemption amount” means three thousand five hundred dollars ($3,500)
multiplied by the number of exemptions allowed for the taxable year for federal income tax
purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same
as it does in 26 U.S.C. § 151 and 26 U.S.C. § 152 just prior to the enactment of the Tax Cuts and
Jobs Act (Pub. L. No. 115-97) on December 22, 2017.
(II) Disallowance of Exemptions
(1) Exemption amount disallowed in case of certain dependents. In the case of an individual
with respect to whom a deduction under this section is allowable to another taxpayer for the same
taxable year, the exemption amount applicable to such individual for such individual’s taxable year
shall be zero.
(2) Exemption amount disallowed for Child Tax Credit. For tax years beginning on or after
1 January 1, 2027, the exemption amount applicable to a claimed child dependent of an eligible
1. taxpayer, as defined in § 44-30-104, on a resident tax return shall be zero and a credit as defined in
2. § 44-30-104 for each claimed child dependent shall be granted.
3. (III) Identifying information required.
4. (1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be
5. allowed under this section with respect to any individual unless the Taxpayer Identification Number
6. of such individual is included on the federal return claiming the exemption for the same tax filing
7. period.
8. (2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event
9. that the Taxpayer Identification Number for each individual is not required to be included on the
10. federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer
11. Identification Number must be provided on the Rhode Island tax return for the purpose of claiming
12. said exemption(s).
13. (D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island
14. purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand
15. dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term
16. “applicable percentage” means twenty (20) percentage points for each five thousand dollars
17. ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year
18. exceeds one hundred seventy-five thousand dollars ($175,000).
19. (E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-
20. 2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount
21. equal to:
22. (I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B)
23. and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by;
24. (II) The cost-of-living adjustment with a base year of 2000.
25. (III) For the purposes of this section, the cost-of-living adjustment for any calendar year is
26. the percentage (if any) by which the consumer price index for the preceding calendar year exceeds
27. the consumer price index for the base year. The consumer price index for any calendar year is the
28. average of the consumer price index as of the close of the twelve-month (12) period ending on

30 August 31, of such calendar year.

(IV) For the purpose of this section the term “consumer price index” means the last
consumer price index for all urban consumers published by the department of labor. For the purpose
of this section the revision of the consumer price index that is most consistent with the consumer
price index for calendar year 1986 shall be used.
1. (V) If any increase determined under this section is not a multiple of fifty dollars ($50.00),
2. such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a
3. married individual filing separate return, if any increase determined under this section is not a
4. multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple
5. of twenty-five dollars ($25.00).
6. (F) Credits against tax.
7. (I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on
8. or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be
9. as follows:
10. (a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit
11. pursuant to subparagraph 44-30-2.6(c)(2)(N).
12. (b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided

13 in § 44-33-1 et seq.

(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax
credit as provided in § 44-30.3-1 et seq.
(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to
other states pursuant to § 44-30-74.
(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit
as provided in § 44-33.2-1 et seq.
(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture
production tax credit as provided in § 44-31.2-1 et seq.
(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of
the federal child and dependent care credit allowable for the taxable year for federal purposes;
provided, however, such credit shall not exceed the Rhode Island tax liability.
(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for
contributions to scholarship organizations as provided in chapter 62 of title 44.
(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable
as if no withholding were required, but any amount of Rhode Island personal income tax actually
deducted and withheld in any calendar year shall be deemed to have been paid to the tax
administrator on behalf of the person from whom withheld, and the person shall be credited with
having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable
year of less than twelve (12) months, the credit shall be made under regulations of the tax
administrator.
(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in
1. RI wavemaker fellowship program as provided in § 42-64.26-1 et seq.
2. (k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in

3 § 42-64.20-1 et seq.

(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode
Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq.
(m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter,
unused carryforward for such credit previously issued shall be allowed for the historic
homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already
issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits
under the historic homeownership assistance act.
(n) Child Tax Credit: Effective for tax years beginning on or after January 1, 2027, credit
shall be allowed for the Child Tax Credit as provided in § 44-30-104.
(2) Except as provided in section 1 above, no other state and federal tax credit shall be
available to the taxpayers in computing tax liability under this chapter.
44-30-12. Rhode Island income of a resident individual.
(a) General. The Rhode Island income of a resident individual means the individual’s
adjusted gross income for federal income tax purposes, with the modifications specified in this
section.
(b) Modifications increasing federal adjusted gross income. There shall be added to federal
adjusted gross income:
(1) Interest income on obligations of any state, or its political subdivisions, other than
Rhode Island or its political subdivisions;
(2) Interest or dividend income on obligations or securities of any authority, commission,
or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the
extent exempted by the laws of the United States from federal income tax but not from state income
taxes;
(3) The modification described in § 44-30-25(g);
(4)(i) The amount defined below of a nonqualified withdrawal made from an account in
the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified
withdrawal is:
(A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal
Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-
6.1; and
(B) A withdrawal or distribution that is:

(I) Not applied on a timely basis to pay “qualified higher education expenses” as defined
in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;
(II) Not made for a reason referred to in § 16-57-6.1(e); or
(III) Not made in other circumstances for which an exclusion from tax made applicable by
Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover,
withdrawal, or distribution is made within two (2) taxable years following the taxable year for
which a contributions modification pursuant to subsection (c)(4) of this section is taken based on
contributions to any tuition savings program account by the person who is the participant of the
account at the time of the contribution, whether or not the person is the participant of the account
at the time of the transfer, rollover, withdrawal, or distribution;
(ii) In the event of a nonqualified withdrawal under subsection (b)(4)(i)(A) or (b)(4)(i)(B)
of this section, there shall be added to the federal adjusted gross income of that person for the
taxable year of the withdrawal an amount equal to the lesser of:
(A) The amount equal to the nonqualified withdrawal reduced by the sum of any
administrative fee or penalty imposed under the tuition savings program in connection with the
nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the
person’s federal adjusted gross income for the taxable year; and
(B) The amount of the person’s contribution modification pursuant to subsection (c)(4) of
this section for the person’s taxable year of the withdrawal and the two (2) prior taxable years less
the amount of any nonqualified withdrawal for the two (2) prior taxable years included in
computing the person’s Rhode Island income by application of this subsection for those years. Any
amount added to federal adjusted gross income pursuant to this subdivision shall constitute Rhode
Island income for residents, nonresidents, and part-year residents;
(5) The modification described in § 44-30-25.1(d)(3)(i);
(6) The amount equal to any unemployment compensation received but not included in
federal adjusted gross income;
(7) The amount equal to the deduction allowed for sales tax paid for a purchase of a
qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6);
(8) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck
Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus
Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or
any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount
of the loan forgiven exceeds $250,000, including an individual’s distributive share of the amount
of a pass-through entity’s loan forgiveness in excess of $250,000; and
1. (9) For the taxable year beginning on or before January 1, 2025, the amount of any income,
2. deduction or allowance that would be subject to federal income tax but for the Congressional
3. enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment. The
4. enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment and any
5. Internal Revenue Service changes to forms, regulations, and/or processing which go into effect
6. during the current tax year or within six (6) months of the beginning of the next tax year shall be
7. deemed grounds for the promulgation of emergency rules and regulations under § 42-35-2.10 to
8. effectuate the purpose of preserving the Rhode Island tax base under Rhode Island law with respect
9. to the One Big Beautiful Bill Act or any other similar Congressional enactment.
10. (10) For any taxable year beginning on or after January 1, 2026, the amount of the
11. deduction taken for domestic research and experimental expenditures under 26 U.S.C. § 174A less
12. the amount of the deduction that would have been allowed as a deduction for domestic research
13. and experimental expenditures under 26 U.S.C. § 174 immediately prior to the enactment of H.R.1
14. (Pub. L. 119–21).
15. (c) Modifications reducing federal adjusted gross income. There shall be subtracted from
16. federal adjusted gross income:
17. (1) Any interest income on obligations of the United States and its possessions to the extent
18. includible in gross income for federal income tax purposes, and any interest or dividend income on
19. obligations, or securities of any authority, commission, or instrumentality of the United States to
20. the extent includible in gross income for federal income tax purposes but exempt from state income
21. taxes under the laws of the United States; provided, that the amount to be subtracted shall in any
22. case be reduced by any interest on indebtedness incurred or continued to purchase or carry
23. obligations or securities the income of which is exempt from Rhode Island personal income tax, to
24. the extent the interest has been deducted in determining federal adjusted gross income or taxable
25. income;

26 (2) A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1);

(3) The amount of any withdrawal or distribution from the “tuition savings program”
referred to in § 16-57-6.1 that is included in federal adjusted gross income, other than a withdrawal
or distribution or portion of a withdrawal or distribution that is a nonqualified withdrawal;
(4) Contributions made to an account under the tuition savings program, including the
“contributions carryover” pursuant to subsection (c)(4)(iv) of this section, if any, subject to the
following limitations, restrictions, and qualifications:
(i) The aggregate subtraction pursuant to this subdivision for any taxable year of the
taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint

return;
(ii) The following shall not be considered contributions:
(A) Contributions made by any person to an account who is not a participant of the account
at the time the contribution is made;
(B) Transfers or rollovers to an account from any other tuition savings program account or
from any other “qualified tuition program” under section 529 of the Internal Revenue Code, 26
U.S.C. § 529; or
(C) A change of the beneficiary of the account;
(iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer’s federal
adjusted gross income to less than zero (0);
(iv) The contributions carryover to a taxable year for purpose of this subdivision is the
excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition
savings program for all preceding taxable years for which this subsection is effective over the sum
of:
(A) The total of the subtractions under this subdivision allowable to the taxpayer for all
such preceding taxable years; and
(B) That part of any remaining contribution carryover at the end of the taxable year which
exceeds the amount of any nonqualified withdrawals during the year and the prior two (2) taxable
years not included in the addition provided for in this subdivision for those years. Any such part
shall be disregarded in computing the contributions carryover for any subsequent taxable year;
(v) For any taxable year for which a contributions carryover is applicable, the taxpayer
shall include a computation of the carryover with the taxpayer’s Rhode Island personal income tax
return for that year, and if for any taxable year on which the carryover is based the taxpayer filed a
joint Rhode Island personal income tax return but filed a return on a basis other than jointly for a
subsequent taxable year, the computation shall reflect how the carryover is being allocated between
the prior joint filers;
(5) The modification described in § 44-30-25.1(d)(1);
(6) Amounts deemed taxable income to the taxpayer due to payment or provision of
insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36 or
other coverage plan;
(7) Modification for organ transplantation.
(i) An individual may subtract up to ten thousand dollars ($10,000) from federal adjusted
gross income if the individual, while living, donates one or more of their human organs to another
human being for human organ transplantation, except that for purposes of this subsection, “human

organ” means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract
modification that is claimed hereunder may be claimed in the taxable year in which the human
organ transplantation occurs.
(ii) An individual may claim that subtract modification hereunder only once, and the
subtract modification may be claimed for only the following unreimbursed expenses that are
incurred by the claimant and related to the claimant’s organ donation:
(A) Travel expenses.
(B) Lodging expenses.
(C) Lost wages.
(iii) The subtract modification hereunder may not be claimed by a part-time resident or a
nonresident of this state;
(8) Modification for taxable Social Security income.
(i) For tax years beginning on or after January 1, 2016, until the tax year beginning January

14 1, 2027:

(A) For a person who has attained the age used for calculating full or unreduced Social
Security retirement benefits who files a return as an unmarried individual, head of household, or
married filing separate whose federal adjusted gross income for the taxable year is less than eighty
thousand dollars ($80,000); or
(B) A married individual filing jointly or individual filing qualifying widow(er) who has
attained the age used for calculating full or unreduced Social Security retirement benefits whose
joint federal adjusted gross income for the taxable year is less than one hundred thousand dollars
($100,000), an amount equal to the Social Security benefits includible in federal adjusted gross
income.
(ii) For the tax years beginning on January 1, 2027, until the tax year beginning January 1,

25 2028:

(A) For a person who files a return as an unmarried individual, head of household, or
married filing separate whose federal adjusted gross income for the taxable year is less than eighty
thousand dollars ($80,000); or
(B) A married individual filing jointly or individual filing qualifying widow(er) whose
joint federal adjusted gross income for the taxable year is less than one hundred thousand dollars
($100,000), an amount equal to the Social Security benefits includible in federal adjusted gross
income.
(iii) For tax years beginning on January 1, 2028 until the tax year beginning
January 1, 2029:
1. (A) For a person who files a return as an unmarried individual, head of household, or
2. married filing separate whose federal adjusted gross income for the taxable year is less than one
3. hundred sixty-five thousand two hundred dollars ($165,200); or
4. (B) A married individual filing jointly or individual filing qualifying widow(er) whose joint
5. federal adjusted gross income for the taxable year is less than two hundred six thousand five
6. hundred fifty dollars ($206,550), an amount equal to the Social Security benefits includible in
7. federal adjusted gross income.
8. (iv) For tax years beginning on or after January 1, 2029, for a person who files a return as
9. an unmarried individual, head of household, married filing separate, a married individual filing
10. jointly, or individual qualifying widow(er) there is no income threshold for tax years beginning on
11. or after January 1, 2029, an amount equal to the Social Security benefits includible in federal
12. adjusted gross income.
13. (ii)(v) Adjustment for inflation. The dollar amount contained in subsections (c)(8)(i)(A)
14. and (c)(8)(i)(B) and (c)(8)(ii) of this section shall be increased annually by an amount equal to:
15. (A) Such dollar amount contained in subsections (c)(8)(i)(A) and (c)(8)(i)(B) and (c)(8)(ii)
16. of this section adjusted for inflation using a base tax year of 2000, multiplied by;
17. (B) The cost-of-living adjustment with a base year of 2000.
18. (iii)(vi) For the purposes of this section the cost-of-living adjustment for any calendar year
19. is the percentage (if any) by which the consumer price index for the preceding calendar year
20. exceeds the consumer price index for the base year. The consumer price index for any calendar
21. year is the average of the consumer price index as of the close of the twelve-month (12) period
22. ending on August 31, of such calendar year.
23. (iv)(vii) For the purpose of this section the term “consumer price index” means the last
24. consumer price index for all urban consumers published by the department of labor. For the purpose
25. of this section the revision of the consumer price index which is most consistent with the consumer
26. price index for calendar year 1986 shall be used.
27. (v)(viii) If any increase determined under this section is not a multiple of fifty dollars
28. ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the
29. case of a married individual filing separate return, if any increase determined under this section is
30. not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower
31. multiple of twenty-five dollars ($25.00);
32. (9) Modification of taxable retirement income from certain pension plans or annuities.
33. (i) For tax years beginning on or after January 1, 2017, until the tax year beginning January
34. 1, 2022, a modification shall be allowed for up to fifteen thousand dollars ($15,000), and for tax

years beginning on or after January 1, 2023, until the tax year beginning January 1, 2024, a
modification shall be allowed for up to twenty thousand dollars ($20,000), and for tax years
beginning on or after January 1, 2025, a modification shall be allowed for up to fifty thousand
dollars ($50,000), of taxable pension and/or annuity income that is included in federal adjusted
gross income for the taxable year:
(A) For a person who has attained the age used for calculating full or unreduced Social
Security retirement benefits who files a return as an unmarried individual, head of household, or
married filing separate whose federal adjusted gross income for such taxable year is less than the
amount used for the modification contained in subsection (c)(8)(i)(A) of this section an amount not
to exceed $15,000 for tax years beginning on or after January 1, 2017, until the tax year beginning

11 January 1, 2022, and an amount not to exceed twenty thousand dollars ($20,000) for tax years

beginning on or after January 1, 2023, until the tax year beginning January 1, 2024, and an amount
not to exceed fifty thousand dollars ($50,000) for tax years beginning on or after January 1, 2025,
of taxable pension and/or annuity income includible in federal adjusted gross income; or
(B) For a married individual filing jointly or individual filing qualifying widow(er) who
has attained the age used for calculating full or unreduced Social Security retirement benefits whose
joint federal adjusted gross income for such taxable year is less than the amount used for the
modification contained in subsection (c)(8)(i)(B) of this section an amount not to exceed $15,000
for tax years beginning on or after January 1, 2017, until the tax year beginning January 1, 2022,
and an amount not to exceed twenty thousand dollars ($20,000) for tax years beginning on or after

21 January 1, 2023, until the tax year beginning January 1, 2024, and an amount not to exceed fifty

thousand dollars ($50,000) for tax years beginning on or after January 1, 2025, of taxable pension
and/or annuity income includible in federal adjusted gross income.
(ii) For tax years beginning on or after January 1, 2025, a modification shall be allowed for
up to fifty thousand dollars ($50,000) of taxable pension and/or annuity income that is included in
federal adjusted gross income for the taxable year:
(A) For a person who has attained the age used for calculating full or unreduced Social
Security retirement benefits who files a return as an unmarried individual, head of household, or
married filing separate whose federal adjusted gross income for the taxable year is less than one
hundred seven thousand dollars ($107,000) an amount not to exceed fifty thousand dollars
($50,000) for tax years beginning on or after January 1, 2025, of taxable pension and/or annuity
income includible in federal adjusted gross income; or
(B) For a married individual filing jointly or individual filing qualifying widow(er) who
has attained the age used for calculating full or unreduced Social Security retirement benefits whose

joint federal adjusted gross income for the taxable year is less than one hundred thirty-three
thousand seven hundred fifty dollars ($133,750) an amount not to exceed fifty thousand dollars
($50,000) for tax years beginning on or after January 1, 2025, of taxable pension and/or annuity
income includible in federal adjusted gross income.
(ii) (iii) Adjustment for inflation.
(A) The dollar amount contained by reference in subsections (c)(9)(i)(A) and (c)(9)(i)(B)
of this section shall be increased annually for tax years beginning on or after January 1, 2018 until
the tax year beginning on January 1, 2025, by an amount equal to:
(A) (I) Such dollar amount contained by reference in subsections (c)(9)(i)(A) and
(c)(9)(i)(B) of this section adjusted for inflation using a base tax year of 2000, multiplied by;
(B) (II) The cost-of-living adjustment with a base year of 2000.
(B) For tax years beginning on or after January 1, 2026, the dollar amount contained in
subsections (c)(9)(ii)(A) and (c)(9)(ii)(B) of this section shall be increased annually by an amount
equal to:
(I) Such dollar amount contained by reference in subsections (c)(9)(ii)(A) and (c)(9)(ii)(B)
of this section adjusted for inflation using a base tax year of 2025, multiplied by;
(II) The cost-of-living adjustment with a base year of 2025.
(iii)(iv) For the purposes of this section, the cost-of-living adjustment for any calendar year
is the percentage (if any) by which the consumer price index for the preceding calendar year
exceeds the consumer price index for the base year. The consumer price index for any calendar
year is the average of the consumer price index as of the close of the twelve-month (12) period
ending on August 31, of such calendar year.
(iv)(v) For the purpose of this section, the term “consumer price index” means the last
consumer price index for all urban consumers published by the department of labor. For the purpose
of this section, the revision of the consumer price index which is most consistent with the consumer
price index for calendar year 1986 shall be used.
(v)(vi) If any increase determined under this section is not a multiple of fifty dollars
($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the
case of a married individual filing a separate return, if any increase determined under this section
is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower
multiple of twenty-five dollars ($25.00).
(vi)(vii) For tax years beginning on or after January 1, 2022, until the tax year beginning
January 1, 2025, the dollar amount contained by reference in subsection (c)(9)(i)(A) shall be
adjusted to equal the dollar amount contained in subsection (c)(8)(i)(A), as adjusted for inflation,

and the dollar amount contained by reference in subsection (c)(9)(i)(B) shall be adjusted to equal
the dollar amount contained in subsection (c)(8)(i)(B), as adjusted for inflation;
(10) Modification for Rhode Island investment in opportunity zones. For purposes of a
taxpayer’s state tax liability, in the case of any investment in a Rhode Island opportunity zone by
the taxpayer for at least seven (7) years, a modification to income shall be allowed for the
incremental difference between the benefit allowed under 26 U.S.C. § 1400Z-2(b)(2)(B)(iv) and
the federal benefit allowed under 26 U.S.C. § 1400Z-2(c);
(11) Modification for military service pensions.
(i) For purposes of a taxpayer’s state tax liability, a modification to income shall be allowed
as follows:
(A) For the tax years beginning on January 1, 2023, a taxpayer may subtract from federal
adjusted gross income the taxpayer’s military service pension benefits included in federal adjusted
gross income;
(ii) As used in this subsection, the term “military service” shall have the same meaning as
set forth in 20 C.F.R. § 212.2;
(iii) At no time shall the modification allowed under this subsection alone or in conjunction
with subsection (c)(9) exceed the amount of the military service pension received in the tax year
for which the modification is claimed;
(12) Any rebate issued to the taxpayer pursuant to § 44-30-103 to the extent included in
gross income for federal tax purposes; and
(13) For tax years beginning on or after January 1, 2025, in the case of a taxpayer that is
licensed in accordance with chapters 28.6 and/or 28.11 of title 21, the amount equal to any
expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed under
26 U.S.C. § 280E.
(14) For any taxable year beginning on or after January 1, 2026, the amount as determined
by the tax administrator required to be added back in a prior year that would have been allowed
under 26 U.S.C. § 174A as enacted in H.R.1 (Pub. L. 119–21) on July 4, 2025, but would not have
been allowed as a deduction under 26 U.S.C. § 174 immediately prior to its enactment. At no time

29 may the cumulative modification amount for each amortized expenditure exceed one hundred

percent (100%) of said expenditure’s expense amount.
(d) Modification for Rhode Island fiduciary adjustment. There shall be added to, or
subtracted from, federal adjusted gross income (as the case may be) the taxpayer’s share, as
beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44-
30-17.
1. (e) Partners. The amounts of modifications required to be made under this section by a
2. partner, which relate to items of income or deduction of a partnership, shall be determined under §
3. 44-30-15.
4. SECTION 7. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled “Motor
5. Vehicle and Trailer Excise Tax Elimination Act of 1998” is hereby amended to read as follows:
6. 44-34.1-2. City, town, and fire district reimbursement.
7. (a) In fiscal years 2024 and thereafter, cities, towns, and fire districts shall receive
8. reimbursements, as set forth in this section, from state general revenues equal to the amount of lost
9. tax revenue due to the phase out of the excise tax. When the tax is phased out, cities, towns, and
10. fire districts shall receive a permanent distribution of sales tax revenue pursuant to § 44-18-18 in
11. an amount equal to any lost revenue resulting from the excise tax elimination.
12. (b)(1) In fiscal year 2024, cities, towns, and fire districts shall receive the following
13. reimbursement amounts:
14. Barrington $ 5,894,822
15. Bristol $ 2,905,818
16. Burrillville $ 5,053,933
17. Central Falls $ 2,077,974
18. Charlestown $ 1,020,877
19. Coventry $ 5,872,396
20. Cranston $ 22,312,247
21. Cumberland $ 6,073,469
22. East Greenwich $ 2,417,332
23. East Providence $ 11,433,479
24. Exeter $ 2,241,381
25. Foster $ 1,652,251
26. Glocester $ 2,381,941
27. Hopkinton $ 1,629,259
28. Jamestown $ 622,793
29. Johnston $ 10,382,785
30. Lincoln $ 5,683,015
31. Little Compton $ 366,775
32. Middletown $ 1,976,448
33. Narragansett $ 1,831,251
34. Newport $ 2,223,671

1 New Shoreham	$ 163,298
2 North Kingstown	$ 5,378,818
3 North Providence	$ 9,619,286
4 North Smithfield	$ 4,398,531
5 Pawtucket	$ 16,495,506
6 Portsmouth	$ 2,414,242
7 Providence	$ 34,131,596
8 Richmond	$ 1,448,455
9 Scituate	$ 1,977,127
10 Smithfield	$ 7,098,694
11 South Kingstown	$ 3,930,455
12 Tiverton	$ 1,748,175
13 Warren	$ 2,090,911
14 Warwick	$ 25,246,254
15 Westerly	$ 5,765,523
16 West Greenwich	$ 1,331,725
17 West Warwick	$ 5,673,744
18 Woonsocket	$ 9,324,776
19 Lime Rock Fire District	$ 133,933
20 Lincoln Fire District	$ 208,994
21 Manville Fire District	$ 64,862
22 Quinnville Fire District	$ 13,483

(2) In fiscal year 2024, funds shall be distributed to the cities, towns, and fire districts as
follows:
(i) On August 1, 2023, twenty-five percent (25%) of the funds.
(ii) On November 1, 2023, twenty-five percent (25%) of the funds.
(iii) On February 1, 2024, twenty-five percent (25%) of the funds.
(iv) On May 1, 2024, twenty-five percent (25%) of the funds.
The funds shall be distributed to each city, town, and fire district in the same proportion as
distributed in fiscal year 2023.
(3) For the city of East Providence, the payment schedule is twenty-five percent (25%) on
November 1, 2023, twenty-five percent (25%) on February 1, 2024, twenty-five percent (25%) on
May 1, 2024, and twenty-five percent (25%) on August 1, 2024.
(4) On any of the payment dates specified in subsections (b)(2)(i) through (b)(2)(iv), (b)(3),
1. or (d) of this section, the director of revenue is authorized to deduct previously made over-payments
2. or add supplemental payments as may be required to bring the reimbursements into full compliance
3. with the requirements of this chapter.
4. (c) When the tax is phased out to August 1, of the following fiscal year the director of
5. revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of
6. sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to
7. the amount of funds distributed to the cities, towns, and fire districts under this chapter during the
8. fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year
9. following the phase-out received by each city, town, and fire district, calculated to the nearest one-
10. hundredth of one percent (0.01%). The director of the department of revenue shall transmit those
11. calculations to the governor, the speaker of the house, the president of the senate, the chairperson
12. of the house finance committee, the chairperson of the senate finance committee, the house fiscal
13. advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for
14. the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to
15. the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-
16. out and each year thereafter in fiscal year 2025 and fiscal year 2026. The cities, towns, and fire
17. districts shall receive that amount of sales tax in the proportions calculated by the director of
18. revenue as that received in the fiscal year following the phase-out, subject to a maximum two
19. percentage point increase from the previous fiscal year. For fiscal year 2026 only, the increase shall
20. be based on the amount received pursuant to subsection (b)(1) or subsection (c) of this section
21. whichever is greater.
22. (d) In fiscal years 2025 and thereafter, twenty-five percent (25%) of the funds shall be
23. distributed to the cities, towns, and fire districts on August 1, 2024, and every August 1 thereafter;
24. twenty-five percent (25%) shall be distributed on November 1, 2024, and every November 1
25. thereafter; twenty-five percent (25%) shall be distributed on February 1, 2025, and every February
26. 1 thereafter; and twenty-five percent (25%) shall be distributed on May 1, 2025, and every May 1
27. thereafter.
28. (e) In fiscal years 2027 and thereafter, each city, town, and fire district shall receive a
29. reimbursement amount equal to the reimbursement amount it received in fiscal year 2026.

30 (e) (f) [Deleted by P.L. 2024, ch. 400, § 1 and P.L. 2024, ch. 401, § 1.]

SECTION 8. Section 45-2-35.1 of the General Laws in Chapter 45-2 entitled
"City of Newport – Landing and boarding fees" is hereby amended to read as follows:
45-2-35.1. City of Newport — Landing and boarding fees.
(a) The city of Newport is authorized to charge, assess, or otherwise collect from every
1. cruise vessel landing in the city of Newport a landing fee of ten dollars ($10.00) fifteen dollars
2. ($15.00) per passenger and from every cruise vessel embarking from Newport, a boarding fee of
3. ten dollars ($10.00) fifteen dollars ($15.00) per passenger. For the purposes of this section, the term
4. “cruise vessel” does not include ferries and water carriers of persons and/or property doing business
5. as common carriers operating upon waters between termini within the state.
6. (b) Of the total fee collected per passenger, ten dollars ($10.00) shall be retained by the
7. city of Newport, and five dollars ($5.00) shall be allocated to the Rhode Island public transit
8. authority as defined in § 39-18-2 to support transit operations in Newport and Aquidneck Island.
9. (b)(c) The city council of the City of Newport shall promulgate rules and regulations to
10. implement the provisions of this section.
11. (c)(d) The city of Newport is authorized to impose a penalty on any delinquency in the
12. payment of any fee imposed under this section, at a rate equal to that assessed by the city on tax
13. delinquencies.
14. SECTION 9. Sections 1, 2, 5, 6, 7, and 8 shall take effect upon passage. Sections 3 and 4
15. shall take effect September 1, 2026.
  1. ARTICLE 6
  2. RELATING TO CAPITAL DEVELOPMENT PROGRAM
  3. SECTION 1. Proposition to be submitted to the people. -- At the general election to be held
  4. on the Tuesday next after the first Monday in November 2026, there shall be submitted to the people
  5. (“People”) of the State of Rhode Island (“State”), for their approval or rejection, the following
  6. proposition:
  7. "Shall the action of the general assembly, by an act passed at the January 2026 session,
  8. authorizing the issuance of bonds, refunding bonds, and temporary notes of the State of Rhode
  9. Island for the capital projects and in the amount with respect to each such project listed below be
  10. approved, and the issuance of bonds, refunding bonds, and/or temporary notes authorized in
  11. accordance with the provisions of said act?"
  12. Project
  13. (1) Higher Education Facilities $215,000,000
  14. Approval of this question will allow the State to issue general obligation bonds, refunding
  15. bonds, and/or temporary notes in an amount not to exceed two hundred and fifteen million dollars
  16. ($215,000,000) for capital improvements to higher education facilities, to be allocated as follows:
  17. (a) University of Rhode Island Integrated Health Building $105,000,000
  18. Provides one hundred and five million dollars ($105,000,000) for the construction of the
  19. new Integrated Health Building on the University of Rhode Island’s Kingston campus to
  20. advance health education, clinical training, and workforce development.
  21. (b) RIC Adams Library Renovations $50,000,000
  22. Provides fifty million dollars ($50,000,000) to fund the construction of a student success and career
  23. readiness center and renovations located at the Adams Library on the Rhode Island College campus.
  24. (c) CCRI Workforce Innovation Center $60,000,000
  25. Provides sixty million dollars ($60,000,000) to fund the construction of a new workforce
  26. innovation center located on the Warwick campus of the Community College of Rhode Island.
  27. Funds will be used for the construction of a modern career and technical educational facility
  28. designed to support workforce readiness and address critical workforce shortages in the State.
  29. (2) Housing and Homeownership $120,000,000
  30. Approval of this question will allow the State to issue general obligation bonds, refunding
  31. bonds, and/or temporary notes in an amount not to exceed one hundred and twenty million dollars
  32. ($120,000,000) to increase and preserve the availability of affordable and accessible housing to
  33. meet the needs of all Rhode Islanders and support community revitalization through the
  34. redevelopment of existing structures, new construction, property acquisition, and infrastructure
    1. improvements, with at least twenty-five million dollars ($25,000,000) allocated towards increasing
    2. production of housing intended for homeownership.
    3. (3) Economic Development $115,000,000
    4. Approval of this question will allow the State to issue general obligation bonds, refunding
    5. bonds, and/or temporary notes in an amount not to exceed one hundred and fifteen million dollars
    6. ($115,000,000) to fund industrial facilities infrastructure improvements, to be allocated as follows:
    7. (a) Site Development $70,000,000
    8. Provides seventy million dollars ($70,000,000) for land acquisition or assembly,
    9. environmental remediation, infrastructure and utility installation, site preparation or development,
    10. and project investments. Eligible uses include, but are not limited to, large-scale industrial site
    11. development to create pad-ready locations and/or facilities, infrastructure improvements and
    12. investments within the Quonset Business Park, and land acquisition, preparation, and project
    13. investments within the I-195 District.
    14. (b) Growth Industry Infrastructure $45,000,000
    15. Provides forty-five million dollars ($45,000,000) for infrastructure, facilities, projects, and
    16. investments that support Rhode Island’s ocean, defense, life sciences, data analytics and related
    17. industries. Eligible uses include, but are not limited to, water-based test ranges and onshore ocean
    18. or defense-related innovation/production facilities, as well as facilities, projects, and investments
    19. that advance businesses and job growth in the life sciences.
    20. (4) Career and Technical Education $50,000,000
    21. Approval of this question will allow the State to issue general obligation bonds, refunding
    22. bonds, and/or temporary notes in an amount not to exceed fifty million dollars ($50,000,000) to
    23. provide local education agencies financing for the creation of new and/or the improvement of
    24. existing career and technical education programs.
    25. (5) Green Economy and Clean Energy Bonds $50,000,000
    26. Approval of this question will allow the State to issue general obligation bonds, refunding
    27. bonds, and/or temporary notes in an amount not to exceed fifty million dollars ($50,000,000) for
    28. environmental and recreational purposes, to be allocated as follows:
    29. (a) Brownfields Remediation and Economic Development $3,000,000
    30. Provides three million dollars ($3,000,000) for up to eighty percent (80%) matching grants
    31. to public, private, and/or non-profit entities for brownfield remediation projects.
    32. (b) Facility Improvements $8,000,000
    33. Provides eight million dollars ($8,000,000) for the renovation and repair of existing
    34. facilities and recreational venues as well as the development and construction of new facilities and
    1. parks.
    2. (c) Local Recreation Projects $1,000,000
    3. Provides one million dollars ($1,000,000) for up to eighty percent (80%) matching grants
    4. for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the
    5. growing needs for active outdoor recreational facilities.
    6. (d) Marine Infrastructure Development $1,000,000
    7. Provides one million dollars ($1,000,000) to provide asset protection and emergency repair
    8. needs for most facilities, including recreational facilities, office space, marine infrastructure, and
    9. more.
    10. (e) Resilient Rhody Infrastructure Fund $20,000,000
    11. Provides twenty million dollars ($20,000,000) to provide financial assistance to local
    12. governmental units for restoring and/or improving resiliency of infrastructure, vulnerable coastal
    13. habitats, and restoring rivers and stream floodplains. These funds will be prioritized to leverage
    14. significant funds to support local programs to improve community resiliency, stormwater
    15. abatement and public safety in the face of increased flooding, major storm events, and
    16. environmental degradation.
    17. (f) Narragansett Bay Watershed Restoration $7,000,000
    18. Provides seven million dollars ($7,000,000) for activities to restore and protect the water
    19. quality and enhance the economic viability and environmental sustainability of Narragansett Bay
    20. and the State's watersheds. Eligible activities include nonpoint source pollution abatement,
    21. including stormwater management; nutrient loading abatement; commercial, industrial and
    22. agricultural pollution abatement; and riparian buffer and watershed ecosystem restoration.
    23. (g) Energy Efficiency $10,000,000
    24. Provides ten million dollars ($10,000,000) for activities related to the financing of energy
    25. efficiency infrastructure.
    26. (6) Cultural Economy $50,000,000
    27. Approval of this question will allow the State to issue general obligation bonds, refunding
    28. bonds, and/or temporary notes in an amount not to exceed fifty million dollars ($50,000,000) for
    29. the construction of a new Rhode Island State History Center.
    30. (a) State History Center $45,000,000
    31. Provides forty-five million dollars ($45,000,000) for the construction of a new Rhode Island
    32. State History Center.
    33. (b) State Preservation Grants Program $5,000,000
    34. Provides five million dollars ($5,000,000) in matching grants administered by the Rhode
      1. Island Historical Preservation and Heritage Commission to cities, towns and nonprofit
      2. organizations for capital improvements to public historic sites, museums and cultural art centers
      3. located in historic structures, and heritage museums throughout the State.
      4. SECTION 2. Ballot labels and applicability of general election laws. -- The Secretary of
      5. State shall prepare and deliver to the State Board of Elections ballot labels for each of the projects
      6. provided for in Section 1 hereof with the designations "approve" or "reject" provided next to the
      7. description of each such project to enable voters to approve or reject each such proposition. The
      8. general election laws, so far as consistent herewith, shall apply to this proposition.
      9. SECTION 3. Approval of projects by the people. -- If a majority of the People voting on
      10. the proposition in Section 1 hereof shall vote to approve any project stated therein, said project
      11. shall be deemed to be approved by the People. The authority to issue bonds, refunding bonds and/or
      12. temporary notes of the State shall be limited to the aggregate amount for all such projects as set
      13. forth in the proposition, which has been approved by the People.
      14. SECTION 4. Bonds for the capital development program. -- The General Treasurer is
      15. hereby authorized and empowered, with the approval of the Governor, and in accordance with the
      16. provisions of this Act to issue capital development bonds in serial form, in the name of and on
      17. behalf of the State, in amounts as may be specified by the Governor in an aggregate principal
      18. amount not to exceed the total amount for all projects approved by the People and designated as
      19. "capital development loan of 2026 bonds." Provided, however, that the aggregate principal amount
      20. of such capital development bonds and of any temporary notes outstanding at any one time issued
      21. in anticipation thereof pursuant to Section 7 hereof shall not exceed the total amount for all such
      22. projects approved by the People. All provisions in this Act relating to "bonds" shall also be deemed
      23. to apply to "refunding bonds."
      24. Capital development bonds issued under this Act shall be in denominations of one thousand
      25. dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the
      26. United States which at the time of payment shall be legal tender for public and private debts. These
      27. capital development bonds shall bear such date or dates, mature at specified time or times, but not
      28. mature beyond the end of the twentieth (20th) State fiscal year following the fiscal year in which
      29. they are issued; bear interest payable semi-annually at a specified rate or different or varying rates:
      30. be payable at designated time or times at specified place or places; be subject to express terms of
      31. redemption or recall, with or without premium; be in a form, with or without interest coupons
      32. attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration
      33. and other provisions as may be fixed by the General Treasurer, with the approval by the Governor,
      34. upon each issue of such capital development bonds at the time of each issue. Whenever the
    1. Governor shall approve the issuance of such capital development bonds, the Governor’s approval
    2. shall be certified to the Secretary of State; the bonds shall be signed by the General Treasurer and
    3. countersigned by Secretary of State and shall bear the seal of the State. The signature approval of
    4. the Governor shall be endorsed on each bond.
    5. SECTION 5. Refunding bonds for the 2026 capital development program. -- The General
    6. Treasurer is hereby authorized and empowered, with the approval of the Governor, and in
    7. accordance with the provisions of this Act, to issue bonds to refund the 2026 capital development
    8. program bonds, in the name of and on behalf of the State, in amounts as may be specified by the
    9. Governor in an aggregate principal amount not to exceed the total amount approved by the People,
    10. to be designated as "capital development program loan of 2026 refunding bonds" (hereinafter
    11. "Refunding Bonds").
    12. The General Treasurer with the approval of the Governor shall fix the terms and form of
    13. any Refunding Bonds issued under this Act in the same manner as the capital development bonds
    14. issued under this Act, except that the Refunding Bonds may not mature more than twenty (20) years
    15. from the date of original issue of the capital development bonds being refunded.
    16. The proceeds of the Refunding Bonds, exclusive of any premium and accrual interest and
    17. net the underwriters’ cost, and cost of bond issuance, shall, upon their receipt, be paid by the
    18. General Treasurer immediately to the paying agent for the capital development bonds which are to
    19. be called and prepaid. The paying agent shall hold the Refunding Bond proceeds in trust until they
    20. are applied to prepay the capital development bonds. While such proceeds are held in trust, the
    21. proceeds may be invested for the benefit of the State in obligations of the United States of America
    22. or the State.
    23. If the General Treasurer shall deposit with the paying agent for the capital development
    24. bonds the proceeds of the Refunding Bonds, or proceeds from other sources, amounts that, when
    25. invested in obligations of the United States or the State, are sufficient to pay all principal, interest,
    26. and premium, if any, on the capital development bonds until these bonds are called for prepayment,
    27. then such capital development bonds shall not be considered debts of the State for any purpose
    28. starting from the date of deposit of such moneys with the paying agent. The Refunding Bonds shall
    29. continue to be a debt of the State until paid.
    30. The term "bond" shall include "note," and the term "refunding bonds" shall include
    31. "refunding notes" when used in this Act.
    32. SECTION 6. Proceeds of the capital development program. -- The General Treasurer is
    33. directed to deposit the proceeds from the sale of capital development bonds issued under this Act,
    34. exclusive of premiums and accrued interest and net the underwriters’ cost, and cost of bond
    1. issuance, in one or more of the depositories in which the funds of the State may be lawfully kept in
    2. special accounts (hereinafter cumulatively referred to as the "capital development bond fund")
    3. appropriately designated for each of the projects set forth in Section 1 hereof which shall have been
    4. approved by the People to be used for the purpose of paying the cost of all such projects so
    5. approved.
    6. All monies in the capital development bond fund shall be expended for the purposes
    7. specified in the proposition provided for in Section 1 hereof under the direction and supervision of
    8. the Director of Administration (hereinafter referred to as "Director"). The Director or his or her
    9. designee shall be vested with all power and authority necessary or incidental to the purposes of this
    10. Act, including but not limited to, the following authority: (a) to acquire land or other real property
    11. or any interest, estate or right therein as may be necessary or advantageous to accomplish the
    12. purposes of this Act; (b) to direct payment for the preparation of any reports, plans and
    13. specifications, and relocation expenses and other costs such as for furnishings, equipment
    14. designing, inspecting and engineering, required in connection with the implementation of any
    15. projects set forth in Section 1 hereof; (c) to direct payment for the costs of construction,
    16. rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other
    17. improvements to land in connection with the implementation of any projects set forth in Section 1
    18. hereof; and (d) to direct payment for the cost of equipment, supplies, devices, materials and labor
    19. for repair, renovation or conversion of systems and structures as necessary for the 2026 capital
    20. development program bonds or notes hereunder from the proceeds thereof. No funds shall be
    21. expended in excess of the amount of the capital development bond fund designated for each project
    22. authorized in Section 1 hereof. With respect to the bonds and temporary notes described in Section
    23. 1, the proceeds shall be used for the following purposes:
    24. Question 1, relating to bonds in the amount of two hundred and fifteen million dollars
    25. ($215,000,000) to provide funding for higher education facilities to be allocated as follows:
    26. (a) University of Rhode Island Integrated Health Building $105,000,000
    27. Provides one hundred and five million dollars ($105,000,000) for the construction of the
    28. new Integrated Health Building on the University of Rhode Island’s Kingston campus to
    29. advance health education, clinical training, and workforce development.
    30. (b) RIC Adams Library Renovations $50,000,000
    31. Provides fifty million dollars ($50,000,000) to fund the construction of a student success
    32. and career readiness center and renovations located at the Adams Library the Rhode Island College
    33. campus.
    34. (c) CCRI Workforce Innovation Center $60,000,000
    1. Provides sixty million dollars ($60,000,000) to fund the construction of a new workforce
    2. innovation center located on the Warwick campus of the Community College of Rhode Island.
    3. Funds will be used for the construction of a modern career and technical educational facility
    4. designed to support workforce readiness and address critical workforce shortages in the State.
    5. Question 2, relating to bonds in the amount of one hundred and twenty million dollars
    6. ($120,000,000) to increase and preserve the availability of affordable and accessible housing to
    7. meet the needs of all Rhode Islanders and support community revitalization through the
    8. redevelopment of existing structures, new construction, property acquisition, and infrastructure
    9. improvements, with at least twenty-five million dollars ($25,000,000) allocated towards increasing
    10. production of housing intended for homeownership.
    11. Question 3, relating to bonds in the amount of one hundred and fifteen million dollars
    12. ($115,000,000) to fund industrial facilities infrastructure improvements, to be allocated as follows:
    13. (a) Site Development $70,000,000
    14. Provides seventy million dollars ($70,000,000) for land acquisition or assembly,
    15. environmental remediation, infrastructure and utility installation, site preparation or development,
    16. and project investments. Eligible uses include, but are not limited to, large-scale industrial site
    17. development to create pad-ready locations and/or facilities, infrastructure improvements and
    18. investments within the Quonset Business Park, and land acquisition, preparation, and project
    19. investments within the I-195 District.
    20. (b) Growth Industry Infrastructure $45,000,000
    21. Provides forty-five million dollars ($45,000,000) for infrastructure, facilities, projects, and
    22. investments that support Rhode Island’s ocean, defense, life sciences, data analytics and related
    23. industries. Eligible uses include, but are not limited to, water-based test ranges and onshore ocean
    24. or defense-related innovation/production facilities, as well as facilities, projects, and investments
    25. that advance businesses and job growth in the life sciences.
    26. Question 4, relating to bonds in the amount of fifty million dollars ($50,000,000) to provide
    27. local education agencies financing for the creation of new and/or the improvement of existing
    28. career and technical education programs.
    29. Question 5, relating to bonds in the amount of fifty million dollars ($50,000,000) for
    30. environmental and recreational purposes, to be allocated as follows:
    31. (a) Brownfields Remediation and Economic Development $3,000,000
    32. Provides three million dollars ($3,000,000) for up to eighty percent (80%) matching grants
    33. to public, private, and/or non-profit entities for brownfield remediation projects.
    34. (b) Facility Improvements $8,000,000
    1. Provides eight million dollars ($8,000,000) for the renovation and repair of existing
    2. facilities and recreational venues as well as the development and construction of new facilities and
    3. parks.
    4. (c) Local Recreation Projects $1,000,000
    5. Provides one million dollars ($1,000,000) for up to eighty percent (80%) matching grants
    6. for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the
    7. growing needs for active outdoor recreational facilities.
    8. (d) Marine Infrastructure Development $1,000,000
    9. Provides one million dollars ($1,000,000) to provide asset protection and emergency repair
    10. needs for most facilities, including recreational facilities, office space, marine infrastructure, and
    11. more.
    12. (e) Resilient Rhody Infrastructure Fund $20,000,000
    13. Provides twenty million dollars ($20,000,000) to provide financial assistance to local
    14. governmental units for restoring and/or improving resiliency of infrastructure, vulnerable coastal
    15. habitats, and restoring rivers and stream floodplains. These funds will be prioritized to leverage
    16. significant funds to support local programs to improve community resiliency, stormwater
    17. abatement and public safety in the face of increased flooding, major storm events, and
    18. environmental degradation.
    19. (f) Narragansett Bay Watershed Restoration $7,000,000
    20. Provides seven million dollars ($7,000,000) for activities to restore and protect the water
    21. quality and enhance the economic viability and environmental sustainability of Narragansett Bay
    22. and the State's watersheds. Eligible activities include nonpoint source pollution abatement,
    23. including stormwater management; nutrient loading abatement; commercial, industrial and
    24. agricultural pollution abatement; and riparian buffer and watershed ecosystem restoration.
    25. (g) Energy Efficiency $10,000,000
    26. Provides ten million dollars ($10,000,000) for activities related to the financing of energy
    27. efficiency infrastructure.
    28. Question 6, relating to bonds in the amount of fifty million dollars ($50,000,000) to provide
    29. funding for cultural economy efforts to be allocated as follows:
    30. (a) State History Center $45,000,000
    31. Provides forty-five million dollars ($45,000,000) for the construction of a new Rhode Island
    32. State History Center.
    33. (b) State Preservation Grants Program $5,000,000
    34. Provides five million dollars ($5,000,000) in matching grants administered by the Rhode
      1. Island Historical Preservation and Heritage Commission to cities, towns and nonprofit
      2. organizations for capital improvements to public historic sites, museums and cultural art centers
      3. located in historic structures, and heritage museums throughout the State.
      4. SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority of
      5. this Act shall be sold at not less than the principal amount thereof, in such mode and on such terms
      6. and conditions as the General Treasurer, with the approval of the Governor, shall deem to be in the
      7. best interests of the State.
      8. Any premiums and accrued interest, net of the cost of bond issuance and underwriter’s
      9. discount, which may be received on the sale of the capital development bonds or notes shall become
      10. part of the Rhode Island Capital Plan Fund of the State, unless directed by federal law or regulation
      11. to be used for some other purpose.
      12. In the event that the amount received from the sale of the capital development bonds or
      13. notes exceeds the amount necessary for the purposes stated in Section 6 hereof, the surplus may be
      14. used to the extent possible to retire the bonds as the same may become due, to redeem them in
      15. accordance with the terms thereof or otherwise to purchase them as the General Treasurer, with the
      16. approval of the Governor, shall deem to be in the best interests of the State.
      17. Any bonds or notes issued under the provisions of this Act and coupons on any capital
      18. development bonds, if properly executed by the manual or electronic signatures of officers of the
      19. State in office on the date of execution, shall be valid and binding according to their tenor,
      20. notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall
      21. for any reason have ceased to hold office.
      22. SECTION 8. Bonds and notes to be tax exempt and general obligations of the State.-- All
      23. bonds and notes issued under the authority of this Act shall be exempt from taxation in the State
      24. and shall be general obligations of the State, and the full faith and credit of the State is hereby
      25. pledged for the due payment of the principal and interest on each of such bonds and notes as the
      26. same shall become due.
      27. SECTION 9. Investment of moneys in fund. -- All moneys in the capital development fund
      28. not immediately required for payment pursuant to the provisions of this Act may be invested by the
      29. investment commission, as established by Chapter 10 of Title 35, entitled “State Investment
      30. Commission,” pursuant to the provisions of such chapter; provided, however, that the securities in
      31. which the capital development fund is invested shall remain a part of the capital development fund
      32. until exchanged for other securities; and provided further, that the income from investments of the
      33. capital development fund shall become a part of the general fund of the State and shall be applied
      34. to the payment of debt service charges of the State, unless directed by federal law or regulation to
    1. be used for some other purpose, or to the extent necessary, to rebate to the United States treasury
    2. any income from investments (including gains from the disposition of investments) of proceeds of
    3. bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on
    4. such bonds or notes from federal income taxation.
    5. SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not
    6. otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and
    7. notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise
    8. appropriated.
    9. SECTION 11. Advances from general fund. -- The General Treasurer is authorized, with
    10. the approval of the Director and the Governor, in anticipation of the issue of notes or bonds under
    11. the authority of this Act, to advance to the capital development bond fund for the purposes specified
    12. in Section 6 hereof, any funds of the State not specifically held for any particular purpose; provided,
    13. however, that all advances made to the capital development bond fund shall be returned to the
    14. general fund from the capital development bond fund forthwith upon the receipt by the capital
    15. development fund of proceeds resulting from the issue of notes or bonds to the extent of such
    16. advances.
    17. SECTION 12. Federal assistance and private funds. -- In carrying out this act, the Director,
    18. or his or her designee, is authorized on behalf of the State, with the approval of the Governor, to
    19. apply for and accept any federal assistance which may become available for the purpose of this
    20. Act, whether in the form of loan or grant or otherwise, to accept the provision of any federal
    21. legislation therefor, to enter into, act and carry out contracts in connection therewith, to act as agent
    22. for the federal government in connection therewith, or to designate a subordinate so to act. Where
    23. federal assistance is made available, the project shall be carried out in accordance with applicable
    24. federal law, the rules and regulations thereunder and the contract or contracts providing for federal
    25. assistance, notwithstanding any contrary provisions of State law. Subject to the foregoing, any
    26. federal funds received for the purposes of this Act shall be deposited in the capital development
    27. bond fund and expended as a part thereof. The Director or his or her designee may also utilize any
    28. private funds that may be made available for the purposes of this Act.
    29. SECTION 13. Effective Date. -- Sections 1, 2, 3, 11, 12 and this Section 13 of this article
    30. shall take effect upon passage. The remaining sections of this article shall take effect when and if
    31. the State Board of Elections shall certify to the Secretary of State that a majority of the qualified
    32. electors voting on the proposition contained in Section 1 hereof have indicated their approval of all
    33. or any projects thereunder.
      
      34
      1. ARTICLE 7
      2. RELATING TO EDUCATION
      3. SECTION 1. Effective July 1, 2026, section 16-7-41.1 of the General Laws in Chapter 16-
      4. 7 entitled “Foundation Level School Support" is hereby amended to read as follows:
      5. 16-7-41.1. Eligibility for reimbursement.
      6. (a) School districts, not municipalities, may apply for and obtain approval for a project
      7. under the necessity of school construction process set forth in the regulations of the council on
      8. elementary and secondary education, provided, however, in the case of a municipality that issues
      9. bonds through the Rhode Island health and educational building corporation to finance or refinance
      10. school facilities for a school district that is not part of the municipality, the municipality may apply
      11. for and obtain approval for a project. Such approval will remain valid until June 30 of the third
      12. fiscal year following the fiscal year in which the council on elementary and secondary education’s
      13. approval is granted. Only those projects undertaken at school facilities under the care and control
      14. of the school committee and located on school property may qualify for reimbursement under §§
      15. 16-7-35 — 16-7-47. Facilities with combined school and municipal uses or facilities that are
      16. operated jointly with any other profit or nonprofit agency do not qualify for reimbursement under
      17. §§ 16-7-35 — 16-7-47. Projects completed by June 30 of a fiscal year are eligible for
      18. reimbursement in the following fiscal year. A project for new school housing or additional housing
      19. shall be deemed to be completed when the work has been officially accepted by the school
      20. committee or when the housing is occupied for its intended use by the school committee, whichever
      21. is earlier.
      22. (b) Notwithstanding the provisions of this section, the board of regents shall not grant final
      23. approval for any project between June 30, 2011, and May 1, 2015, except for projects that are
      24. necessitated by immediate health and safety reasons. In the event that a project is requested during
      25. the moratorium because of immediate health and safety reasons, those proposals shall be reported
      26. to the chairs of the house and senate finance committees.
      27. (c) Any project approval granted prior to the adoption of the school construction
      28. regulations in 2007, and which are currently inactive; and any project approval granted prior to the
      29. adoption of the school construction regulations in 2007 which did not receive voter approval or
      30. which has not been previously financed, are no longer eligible for reimbursement under this
      31. chapter. The department of elementary and secondary education shall develop recommendations
      32. for further cost containment strategies in the school housing aid program.
      33. (d) Beginning July 1, 2015, the council on elementary and secondary education shall
      34. approve new necessity of school construction applications on an annual basis. The department of
    1. elementary and secondary education shall develop an annual application timeline for local
    2. education agencies seeking new necessity of school construction approvals.
    3. (e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten
    4. million dollars ($10,000,000) unless the prime contractor for the project has received
    5. prequalification from the school building authority. However, for projects commencing after July
    6. 1, 2026, and for subsequent fiscal years, no state funding shall be provided for projects in excess
    7. of ten million dollars ($10,000,000) unless the prime contractor for the project has received
    8. prequalification from the division of purchases.
    9. (f) Beginning July 1, 2019, the necessity of school construction process set forth in the
    10. regulations of the council on elementary and secondary education shall include a single statewide
    11. process, developed with the consultation of the department of environmental management, that will
    12. ensure community involvement throughout the investigation and remediation of contaminated
    13. building sites for possible reuse as the location of a school. That process will fulfill all provisions
    14. of § 23-19.14-5 related to the investigation of reuse of such sites for schools.
    15. (g) Beginning July 1, 2019, school housing projects exceeding one million five hundred
    16. thousand dollars ($1,500,000) subject to inflation shall include an owner’s program manager and a
    17. commissioning agent. The cost of the program manager and commissioning agent shall be
    18. considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5. However, for
    19. projects completing after July 1, 2026, and subsequent fiscal years, school housing projects
    20. exceeding ten million dollars ($10,000,000) subject to inflation shall include an owner’s program
    21. manager and a commissioning agent. The cost of the program manager and commissioning agent
    22. shall not exceed three percent (3%) of total project costs and shall be considered a project cost
    23. eligible for aid pursuant to §§ 16-7-41 and 16-105-5.
    24. (h) Temporary housing, or swing space, for students shall be a reimbursable expense so
    25. long as a district can demonstrate that no other viable option to temporarily house students exists
    26. and provided that use of the temporary space is time limited for a period not to exceed twenty-four
    27. (24) months and tied to a specific construction project.
    28. (i) Environmental site remediation, as defined by the school building authority, shall be a
    29. reimbursable expense up to one million dollars ($1,000,000) per project.
    30. (j) If, within thirty (30) years of construction, a newly constructed school is sold to a private
    31. entity, the state shall receive a portion of the sale proceeds equal to that project’s housing aid
    32. reimbursement rate at the time of project completion.
    33. (k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being
    34. followed, and § 37-14.1-6, ensuring that minority business enterprises reach the required minimum
    1. participation.
    2. SECTION 2. Effective July 1, 2026, section 16-7.2-3 of the General Laws in Chapter 16-
    3. 7.2 entitled "The Education Equity and Property Tax Relief Act" is hereby amended to read as
    4. follows:
    5. 16-7.2-3. Permanent foundation education aid established.
    6. (a) Beginning in the 2012 fiscal year, the following foundation education-aid formula shall
    7. take effect. The foundation education aid for each district shall be the sum of the core instruction
    8. amount in subsection (a)(1) of this section and the amount to support high-need students in
    9. subsection (a)(2) of this section, which shall be multiplied by the district state-share ratio calculated
    10. pursuant to § 16-7.2-4 to determine the foundation aid.
    11. (1) The core instruction amount shall be an amount equal to a statewide, per-pupil core
    12. instruction amount as established by the department of elementary and secondary education,
    13. derived from the average of northeast regional expenditure data for the states of Rhode Island,
    14. Massachusetts, Connecticut, and New Hampshire from the National Center for Education Statistics
    15. (NCES) that will adequately fund the student instructional needs as described in the basic education
    16. program and multiplied by the district average daily membership as defined in § 16-7-22.
    17. Expenditure data in the following categories: instruction and support services for students,
    18. instruction, general administration, school administration, and other support services from the
    19. National Public Education Financial Survey, as published by NCES, and enrollment data from the
    20. Common Core of Data, also published by NCES, will be used when determining the core
    21. instruction amount. The core instruction amount will be updated annually. For the purpose of
    22. calculating this formula, school districts’ resident average daily membership shall exclude charter
    23. school and state-operated school students.
    24. (2) The amount to support high-need students beyond the core instruction amount shall be
    25. determined by:
    26. (i) Multiplying a student success factor of forty percent (40%); provided further, for the
    27. fiscal year beginning July 1, 2026, and for subsequent fiscal years, the student success factor shall
    28. be forty-three percent (43%); by the core instruction per-pupil amount described in subsection
    29. (a)(1) of this section and applying that amount for each resident child whose family income is at or
    30. below one hundred eighty-five percent (185%) of federal poverty guidelines, hereinafter referred
    31. to as “poverty status.” By October 1, 2022, as part of its budget submission pursuant to § 35-3-4
    32. relative to state fiscal year 2024 and thereafter, the department of elementary and secondary
    33. education shall develop and utilize a poverty measure that in the department’s assessment most
    34. accurately serves as a proxy for the poverty status referenced in this subsection and does not rely
    1. on the administration of school nutrition programs. The department shall utilize this measure in
    2. calculations pursuant to this subsection related to the application of the student success factor, in
    3. calculations pursuant to § 16-7.2-4 related to the calculation of the state share ratio, and in the
    4. formulation of estimates pursuant to subsection (b) below. The department may also include any
    5. recommendations which seek to mitigate any disruptions associated with the implementation of
    6. this new poverty measure or improve the accuracy of its calculation. Beginning with the FY 2024
    7. calculation, students whose family income is at or below one hundred eighty-five percent (185%)
    8. of federal poverty guidelines will be determined by participation in the supplemental nutrition
    9. assistance program (SNAP). The number of students directly certified through the department of
    10. human services shall be multiplied by a factor of 1.6; and
    11. (ii) Multiplying a multilingual learner (MLL) factor of twenty percent (20%) by the core
    12. instruction per-pupil amount described in subsection (a)(1) of this section, applying that amount
    13. for each resident child identified in the three lowest proficiency categories using widely adopted,
    14. independent standards and assessments in accordance with subsection (f)(1) of this section and as
    15. identified by the commissioner and defined by regulations of the council on elementary and
    16. secondary education. Local education agencies shall report annually to the department of
    17. elementary and secondary education by September 1, outlining the planned and prior year use of
    18. all funding pursuant to this subsection to provide services to MLL students in accordance with
    19. requirements set forth by the commissioner of elementary and secondary education. The
    20. department shall review the use of funds to ensure consistency with established best practices.
    21. (b) The department of elementary and secondary education shall provide an estimate of the
    22. foundation education aid cost as part of its budget submission pursuant to § 35-3-4. The estimate
    23. shall include the most recent data available as well as an adjustment for average daily membership
    24. growth or decline based on the prior year experience.
    25. (c) In addition, the department shall report updated figures based on the average daily
    26. membership as of October 1 by December 1.
    27. (d) Local education agencies may set aside a portion of funds received under subsection
    28. (a) to expand learning opportunities such as after school and summer programs, full-day
    29. kindergarten and/or multiple pathway programs, provided that the basic education program and all
    30. other approved programs required in law are funded.
    31. (e) The department of elementary and secondary education shall promulgate such
    32. regulations as are necessary to implement fully the purposes of this chapter.
    33. (f)(1) By October 1, 2023, as part of its budget submission pursuant to § 35-3-4 relative to
    34. state fiscal year 2025, the department of elementary and secondary education shall evaluate the
    1. number of students by district who qualify as multilingual learner (MLL) students and MLL
    2. students whose family income is at or below one hundred eighty-five percent (185%) of federal
    3. poverty guidelines. The submission shall also include segmentation of these populations by levels
    4. as dictated by the WIDA multilingual learner assessment tool used as an objective benchmark for
    5. English proficiency. The department shall also prepare and produce expense data sourced from the
    6. uniform chart of accounts to recommend funding levels required to support students at the various
    7. levels of proficiency as determined by the WIDA assessment tool. Utilizing this information, the
    8. department shall recommend a funding solution to meet the needs of multilingual learners; this may
    9. include but not be limited to inclusion of MLL needs within the core foundation formula amount
    10. through one or multiple weights to distinguish different students of need or through categorical
    11. means.
    12. (2) By October 1, 2024, as part of its budget submission pursuant to § 35-3-4 relative to
    13. state fiscal year 2026, the department of elementary and secondary education shall develop
    14. alternatives to identify students whose family income is at or below one hundred eighty-five percent
    15. (185%) of federal poverty guidelines through participation in state-administered programs,
    16. including, but not limited to, the supplemental nutrition assistance program (SNAP), and RIteCare
    17. and other programs that include the collection of required supporting documentation. The
    18. department may also include any recommendations that seek to mitigate any disruptions associated
    19. with implementation of this new poverty measure or improve the accuracy of its calculation.
    20. (3) The department shall also report with its annual budget request information regarding
    21. local contributions to education aid and compliance with §§ 16-7-23 and 16-7-24. The report shall
    22. also compare these local contributions to state foundation education aid by community. The
    23. department shall also report compliance to each city or town school committee and city or town
    24. council.
    25. (4) By October 1, 2025, as part of its budget submission pursuant to § 35-3-4 relative to
    26. state fiscal year 2027, the department of elementary and secondary education shall submit a report
    27. developed in coordination with the department of administration and the Rhode Island longitudinal
    28. data system within the office of the postsecondary commissioner. The report shall provide an
    29. overview of the process for matching the department of human services program participation data
    30. to the department of elementary and secondary education student enrollment records for use in the
    31. education funding formula and recommend methods to ensure consistency and accuracy in future
    32. matching processes.
    33. (5) As part of its FY 2027 budget submission, the department shall also submit an estimate
    34. of foundation education aid that uses expanded direct certification with Medicaid matching in
    1. consultation with the Rhode Island longitudinal data system and the executive office of health and
    2. human services to identify students whose family income is at or below one hundred eighty-five
    3. percent (185%) of federal poverty guidelines, in addition to an estimate under the current law
    4. poverty determination.
    5. (6) By December 31, 2025, the department of elementary and secondary education shall
    6. also develop and submit a report to the governor, speaker of the house, and senate president on
    7. current and recommended processes to ensure the consistency and validity of submitted high-cost
    8. special education data from local education agencies.
    9. SECTION 3. Effective July 1, 2026, section 16-105-3 of the General Laws in Chapter 16-
    10. 105 entitled "School Building Authority" is hereby amended to read as follows:
    11. 16-105-3. Roles and responsibilities.
    12. The school building authority roles and responsibilities shall include:
    13. (1) Management of a system with the goal of ensuring equitable and adequate school
    14. housing for all public school children in the state;
    15. (2) Prevention of the cost of school housing from interfering with the effective operation
    16. of the schools;
    17. (3) Management of school housing aid in accordance with statute;
    18. (4) Reviewing and making recommendations to the council on elementary and secondary
    19. education on necessity of school construction applications for state school housing aid and the
    20. school building authority capital fund, based on the recommendations of the school building
    21. authority advisory board;
    22. (5) Promulgating, managing, and maintaining school construction regulations, standards,
    23. and guidelines applicable to the school housing program, based on the recommendations of the
    24. school building authority advisory board, created in § 16-105-8. Said regulations shall require
    25. conformance with the minority business enterprise requirements set forth in § 37-14.1-6;
    26. (6) Developing a prequalification and review process for prime contractors, architects, and
    27. engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs
    28. subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be
    29. valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the
    30. school building authority in granting a prequalification to prime contractors shall include, but not
    31. be limited to, the contractor’s history of completing complex projects on time and on budget, track
    32. record of compliance with applicable environmental and safety regulations, evidence that
    33. completed prior projects prioritized the facility’s future maintainability, and compliance with
    34. applicable requirements for the use of women and minority owned subcontractors;
      1. (i) At least annually, a list of prequalified contractors, architects, and engineers shall be
      2. publicly posted with all other program information;
      3. (7)(6) Providing technical assistance and guidance to school districts on the necessity of
      4. school construction application process;
      5. (8)(7) Providing technical advice and assistance, training, and education to cities, towns,
      6. and/or local education agencies and to general contractors, subcontractors, construction or project
      7. managers, designers and others in planning, maintenance, and establishment of school facility
      8. space;
      9. (9)(8) Developing a project priority system, based on the recommendations of the school
      10. building authority advisory board, in accordance with school construction regulations for the school
      11. building authority capital fund, subject to review and, if necessary, to be revised on intervals not to
      12. exceed five (5) years. Project priorities shall include, but not be limited to, the following order of
      13. priorities:
      14. (i) Projects to replace or renovate a building that is structurally unsound or otherwise in a
      15. condition seriously jeopardizing the health and safety of school children where no alternative exists;
      16. (ii) Projects needed to prevent loss of accreditation;
      17. (iii) Projects needed for the replacement, renovation, or modernization of the HVAC
      18. system in any schoolhouse to increase energy conservation and decrease energy-related costs in
      19. said schoolhouse;
      20. (iv) Projects needed to replace or add to obsolete buildings in order to provide for a full
      21. range of programs consistent with state and approved local requirements; and
      22. (v) Projects needed to comply with mandatory, instructional programs;
      23. (10)(9) Maintaining a current list of requested school projects and the priority given them;
      24. (11)(10) Collecting and maintaining readily available data on all the public school facilities
      25. in the state;
      26. (12)(11) Collecting, maintaining, and making publicly available quarterly progress reports
      27. of all ongoing school construction projects that shall include, at a minimum, the costs of the project
      28. and the time schedule of the project;
      29. (13)(12) Recommending policies and procedures designed to reduce borrowing for school
      30. construction programs at both state and local levels;
      31. (14)(13) At least every five (5) years, conducting a needs survey to ascertain the capital
      32. construction, reconstruction, maintenance, and other capital needs for schools in each district of the
      33. state, including public charter schools;
      34. (15)(14) Developing a formal enrollment projection model or using projection models
        already available;
        
        (16)(15) Encouraging local education agencies to investigate opportunities for the
        
        maximum utilization of space in and around the district;
        (17)(16) Collecting and maintaining a clearinghouse of prototypical school plans that may
        
        be consulted by eligible applicants;
        
        (18)(17) Retaining the services of consultants, as necessary, to effectuate the roles and
        
        responsibilities listed within this section;
        
        (19)(18) No district shall receive a combined total of more than twenty (20) incentive
        
        percentage points for projects that commence construction by December 30, 2023, and five (5)
        incentive points for projects that commence construction thereafter; provided further, these caps
        
        shall be in addition to amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a
        
        district’s share shall not be decreased by more than half of its regular share irrespective of the
        
        number of incentive points received, nor shall a district’s state share increase by more than half of
        
        its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective
        of the number of incentive points received. Notwithstanding any provision of the general laws to
        
        the contrary, the reimbursement or aid received under this chapter or chapter 38.2 of title 45 shall
        
        not exceed one hundred percent (100%) of the sum of the total project costs plus interest costs. If
        
        a two hundred and fifty million dollar ($250,000,000) general obligation bond is approved on the
    19 November 2018 ballot, projects approved between May 1, 2015, and January 1, 2018, are eligible
    1. to receive incentive points (above and beyond what the project was awarded at the time of approval)
    2. pursuant to § 16-7-39 and § 16-7-40. Provided, however, any project approved during this time
    3. period with a project cost in excess of one million five hundred thousand dollars ($1,500,000),
    4. which does not include an owner’s program manager and a commissioning agent, shall only be
    5. eligible to receive five (5) incentive points. Incentive points awarded pursuant to the provisions of
    6. this subsection shall only be applied to reimbursements occurring on or after July 1, 2018. Any
    7. project approved between May 1, 2015, and January 1, 2018, that is withdrawn and/or resubmitted
    8. for approval shall not be eligible for any incentive points.
    28 SECTION 4. Sections 16-113-1, 16-113-2, 16-113-3, 16-113-4, and 16-113-7 of the
    1. General Laws in Chapter 16-113 entitled “Rhode Island Hope Scholarship Pilot Program Act” are
    2. hereby amended to read as follows:
    3. 16-113-1. Short title.
    4. This chapter shall be known and may be cited as the “Rhode Island Hope Scholarship Pilot
    5. Program Act”.
    6. 16-113-2. Legislative findings and purpose.
    1. (a) The general assembly finds and declares that:
    2. (1) Education is critical for the state’s young people to achieve their aspirations and
    3. develop their talents;
    4. (2) The state’s economic success depends on a highly educated and skilled workforce;
    5. (3) The state’s future prosperity depends upon its ability to make educational opportunities
    6. beyond high school available for all students;
    7. (4) The coronavirus has inflicted undue hardships on students and their families, creating
    8. barriers to a four-year (4) college degree;
    9. (5) A merit-based tuition reduction program will help make a four-year (4) college degree
    10. available to all students;
    11. (6) Rhode Island college offers students a feasible opportunity to obtain a four-year (4)
    12. degree, but remains an underutilized resource in the state; and
    13. (7) The state of Rhode Island’s motto is “Hope”.
    14. (b) In order to address the findings set forth in subsection (a) of this section, the purpose
    15. of this chapter is to increase the number of students enrolling in and completing four-year (4)
    16. degrees and certificates on time from Rhode Island college, and to promote more graduates in high-
    17. need fields such as nursing, pre-K through grade twelve (12) education, and the trades, which are
    18. fields for which Rhode Island college provides a strong and affordable education.
    19. (c) The purpose of the pilot program is also to determine whether a scholarship program
    20. for Rhode Island college that is modeled on the promise scholarship program established in chapter
    21. 107 of this title would be successful in attaining the goals set forth in this section.
    22. 16-113-3. Establishment of scholarship program.
    23. There is hereby established the Rhode Island hope scholarship pilot program. The general
    24. assembly shall annually appropriate the funds necessary to implement the purposes of this chapter
    25. for the periods of the pilot program. Additional funds beyond the scholarships may be appropriated
    26. to support and advance the Rhode Island hope scholarship pilot program. In addition to
    27. appropriation by the general assembly, charitable donations may be accepted into the scholarship
    28. program.
    29. 16-113-4. Definitions.
    30. When used in this chapter, the following terms shall have the following meanings:
    31. (1) “ADA” means the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., as may
    32. be amended from time to time.
    33. (2) “Certificate” means any certificate program with labor market value as defined by the
    34. postsecondary commissioner.
      1. (3) “College-level credit” means credit awarded by a college or university for completion
      2. of its own courses or other academic work.
      3. (4) “FAFSA” means the Free Application for Federal Student Aid form.
      4. (5) “General education coursework” means the educational foundation of knowledge,
      5. skills, and attitudes that prepares students for success in their majors and their personal and
      6. professional lives after graduation. It includes, but is not limited to, the required coursework of all
      7. degrees developed by each eligible postsecondary institution that is approved by the council on
      8. postsecondary education that is intended to ensure that all graduates of a state institution have a
      9. balanced core of competencies and knowledge. This does not necessarily include coursework
      10. specifically required for one’s major.
      11. (6) “Mandatory fees and tuition” means the costs that every student is required to pay in
      12. order to enroll in classes, and does not include room and board, textbooks, program fees that may
      13. exist in some majors, course fees that may exist for some specific courses, meal plans, or travel.
      14. (7) “On track to graduate on time” means the standards determined by Rhode Island college
      15. in establishing the expectation of a student to graduate with a bachelor’s degree within four (4)
      16. years of enrollment, or the prescribed completion time for a student completing a certificate
      17. (recognizing that some students, including students who require developmental education, are
      18. double majors, or are enrolled in certain professional programs may require an extended time period
      19. for degree completion).
      20. (8) “Pilot pProgram” and or “scholarship program” means the Rhode Island hope
      21. scholarship pilot program that is established pursuant to § 16-113-3.
      22. (9) “Reasonable accommodations” means any necessary modifications or adjustment to a
      23. facility, equipment, program, or manner of operation as required by the Americans with Disabilities
      24. Act (“ADA”) and section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 791, as may be
      25. amended from time to time.
      26. (10) “Recipient student” means a student attending Rhode Island college who qualifies to
      27. receive the Rhode Island hope scholarship pursuant to § 16-113-6.
      28. (11) “State” means the state of Rhode Island.
      29. (12) “Student with a disability” means any student otherwise eligible pursuant to this
      30. chapter who has a physical, developmental, or hidden disability or disabilities, as defined in § 42-
      31. 87-1, that would create a hardship or other functional obstacles preventing participation in this
      32. program.
      33. 16-113-7. Reporting and disbursement.
      34. (a) On or before November 10, 2023, and on or before November 10 and May 10 thereafter
        for every year through and including calendar year 2030 of each fiscal year following fiscal year
        
        2024, Rhode Island college shall submit a report to the director of the office of management and
        
        budget, the state budget officer, the house fiscal advisor, the senate fiscal advisor, the commissioner
        of postsecondary education, and the chair of the council on postsecondary education, detailing the
        
        following:
        
        (1) The number of students eligible to participate in the scholarship program;
        
        (2) The amount of federal and institutional financial aid anticipated to be received by
        
        recipient students;
        
        (3) The aggregate tuition and mandatory fee costs attributable to recipient students;
        (4) The resulting total cost of the scholarship program to the state; and
        
        (5) The report shall contain such data for both the current fiscal year and the most up-to-
        
        date forecast for the following fiscal year. Data reported shall be subdivided by student-year cohort
        
        and shall be accompanied by a written explanation detailing the estimating methodology utilized
        
        and any impact(s) the forecasted data may present to institutional capacity, operational costs, and
        the tuition/fee revenue base of the institution.
        
        (b) On or before July 1, 2030, Rhode Island college and the commissioner of postsecondary
        
        education shall submit a report evaluating the program based on all cohorts to the governor, speaker
        
        of the house, and the president of the senate. This evaluation shall include the following:
        
        (1) The number of students who started in each cohort;
        (2) The number of students in each cohort who have attained a degree or certification in an
        
        on-time manner;
        
        (3) The number of students in each cohort who have not attained a degree or certification
        
        in an on-time manner and an analysis of why that has happened;
        
        (4) The number of students in each cohort who began the program but have been unable to
        
        continue or complete the program and an analysis of why that has happened;
        (5) The costs of the program and the costs of continuing the program;
        
        (6) Suggestions for ways to increase the success of the program;
        
        (7) Recommendations as to modifying, continuing, expanding, curtailing, or discontinuing
        
        the program; and
        
        (8) Any such other recommendations or information as Rhode Island college and the
        commissioner of postsecondary education deem appropriate to include in the evaluation.
        
        (c) The office of management and budget, in consultation with the office of the
        
        postsecondary commissioner, shall oversee the apportionment and disbursement of all funds
        
        appropriated for the purpose of the scholarship program.
        SECTION 5. Section 16-113-10 of the General Laws in Chapter 16-113 entitled “Rhode
        
        Island Hope Scholarship Pilot Program Act” is hereby repealed.
        
        16-113-10. Funding of and sunset of pilot program.
        The Rhode Island hope scholarship pilot program shall be funded from July 1, 2023,
        
        through and including June 30, 2030. There shall be no further funding of the pilot program without
        
        further action of the general assembly. Any final reports due pursuant to this chapter shall be filed
        
        pursuant to the dates set forth herein.
        
        SECTION 6. Effective July 1, 2026, section 45-38.2-2 of the General Laws in Chapter 45-
        
        38.2 entitled "School Building Authority Capital Fund" is hereby amended to read as follows:
        45-38.2-2. School building authority capital fund.
        
        (a) There is hereby established a school building authority capital fund. The corporation
        
        shall establish and set up on its books the fund, to be held in trust and to be administered by the
        
        corporation as provided in this chapter. This fund shall be in addition to the annual appropriation
        
        for committed expenses related to the repayment of housing aid commitments. The corporation
        shall deposit the following monies into the fund:
        
        (1) The difference between the annual housing aid appropriation and housing aid
        
        commitment amounts appropriated or designated to the corporation by the state for the purposes of
        
        the foundation program for school housing; provided that for FY 2019 and FY 2020 that amount
        
        shall be used for technical assistance to districts pursuant to § 16-105-3(7);
        (2)(1) Loan repayments, bond refinance interest savings, and other payments received by
        
        the corporation pursuant to loan or financing agreements with cities, towns, or local education
        
        agencies executed in accordance with this chapter;
        
        (3)(2) Investment earnings on amounts credited to the fund;
        
        (4)(3) Proceeds of bonds of the corporation issued in connection with this chapter to the
        
        extent required by any trust agreement for such bonds;
        (5)(4) Administrative fees levied by the corporation, with respect to financial assistance
        
        rendered under this chapter and specified in § 45-38.2-3(a)(4), less operating expenses;
        
        (6)(5) Other amounts required by provisions of this chapter or agreement, or any other law
        
        or any trust agreement pertaining to bonds to be credited to the fund; and
        
        (7)(6) Any other funds permitted by law which the corporation in its discretion shall
        determine to credit thereto.
        
        (b) The corporation shall establish and maintain fiscal controls and accounting procedures
        
        conforming to generally accepted government accounting standards sufficient to ensure proper
        
        accounting for receipts in and disbursements from the school building authority capital fund.
        (c) The school building authority shall establish and maintain internal controls to ensure
        
        that local education agencies are providing adequate asset protection plans, all local education
        
        agencies have equal access and opportunity to address facility improvements on a priority basis,
        and to ensure that funding from the school building authority capital fund has the greatest impact
        
        on facility gaps in state priority areas. The school building authority will also manage necessity of
        
        school construction approvals in accordance with the funding levels set forth by the general
        
        assembly.
        
        SECTION 7. This article shall take effect upon passage, except for sections 1, 2, 3 and 6
        
        which shall be effective July 1, 2026.
    10
    1. ARTICLE 8
    2. RELATING TO MEDICAL ASSISTANCE
    3. SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled "Licensing
    4. of Healthcare Facilities" is hereby amended to read as follows:
    5. 23-17-38.1. Hospitals – Licensing fee.
    6. (a) There is imposed a hospital licensing fee described in subsections (c) through (f) for
    7. state fiscal years 2024 and 2025 against net patient-services revenue of every non-government
    8. owned hospital as defined herein for the hospital’s first fiscal year ending on or after January 1,
    9. 2022. The hospital licensing fee shall have three (3) tiers with differing fees based on inpatient and
    10. outpatient net patient-services revenue. The executive office of health and human services, in
    11. consultation with the tax administrator, shall identify the hospitals in each tier, subject to the
    12. definitions in this section, by July 15, 2023, and shall notify each hospital of its tier by August 1,
    13. 2023.
    14. (b) There is also imposed a hospital licensing fee described in subsections (c) through (f)
    15. for state fiscal years 2026 and 2027 against net patient-services revenue of every non-government
    16. owned hospital as defined herein for the hospital’s first fiscal year ending on or after January 1,
    17. 2023. The hospital licensing fee shall have three (3) tiers with differing fees based on inpatient and
    18. outpatient net patient-services revenue. The executive office of health and human services, in
    19. consultation with the tax administrator, shall identify the hospitals in each tier, subject to the
    20. definitions in this section, annually by July 15, 2025, and shall notify each hospital of its assigned
    21. tier by August 1, 2025.
    22. (c) Tier 1 is composed of hospitals that do not meet the description of either Tier 2 or Tier
    23 3.
    1. (1) The inpatient hospital licensing fee for Tier 1 is equal to thirteen and twelve hundredths
    2. percent (13.12%) of the inpatient net patient-services revenue derived from inpatient net patient-
    3. services revenue of every Tier 1 hospital.
    4. (2) The outpatient hospital licensing fee for Tier 1 is equal to thirteen and thirty hundredths
    5. percent (13.30%) of the net patient-services revenue derived from outpatient net patient-services
    6. revenue of every Tier 1 hospital.
    7. (d) Tier 2 is composed of high Medicaid/uninsured cost hospitals and independent
    8. hospitals.
    9. (1) The inpatient hospital licensing fee for Tier 2 is equal to two and sixty-three hundredths
    10. percent (2.63%) of the inpatient net patient-services revenue derived from inpatient net patient-
    11. services revenue of every Tier 2 hospital.
      1. (2) The outpatient hospital licensing fee for Tier 2 is equal to two and sixty-six hundredths
      2. percent (2.66%) of the outpatient net patient-services revenue derived from outpatient net patient-
      3. services revenue of every Tier 2 hospital.
      4. (e) Tier 3 is composed of hospitals that are Medicare-designated low-volume hospitals and
      5. rehabilitative hospitals.
      6. (1) The inpatient hospital licensing fee for Tier 3 is equal to one and thirty-one hundredths
      7. percent (1.31%) of the inpatient net patient-services revenue derived from inpatient net patient-
      8. services revenue of every Tier 3 hospital.
      9. (2) The outpatient hospital licensing fee for Tier 3 is equal to one and thirty-three
      10. hundredths percent (1.33%) of the outpatient net patient-services revenue derived from outpatient
      11. net patient-services revenue of every Tier 3 hospital.
      12. (f) There is also imposed a hospital licensing fee for state fiscal year 2024 against state-
      13. government owned and operated hospitals in the state as defined herein. The hospital licensing fee
      14. is equal to five and twenty-five hundredths percent (5.25%) of the net patient-services revenue of
      15. every hospital for the hospital’s first fiscal year ending on or after January 1, 2022. There is also
      16. imposed a hospital licensing fee for state fiscal years 2025, and 2026, and 2027 against state-
      17. government owned and operated hospitals in the state as defined herein equal to five and twenty-
      18. five hundredths percent (5.25%) of the net patient-services revenue of every hospital for the
      19. hospital’s first fiscal year ending on or after January 1, 2023.
      20. (g) The hospital licensing fee described in subsections (b) through (f) is subject to U.S.
      21. Department of Health and Human Services approval of a request to waive the requirement that
      22. healthcare-related taxes be imposed uniformly as contained in 42 C.F.R. § 433.68(d).
      23. (h) This hospital licensing fee shall be administered and collected by the tax administrator,
      24. division of taxation within the department of revenue, and all the administration, collection, and
      25. other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to
      26. the tax administrator before June 25 of each fiscal year, and payments shall be made by electronic
      27. transfer of monies to the tax administrator and deposited to the general fund. Every hospital shall,
      28. on or before August 1 of each fiscal year, make a return to the tax administrator containing the
      29. correct computation of inpatient and outpatient net patient-services revenue for the hospital data
      30. referenced in this section subsection (a) and/or (b), and the licensing fee due upon that amount. All
      31. returns shall be signed by the hospital’s authorized representative, subject to the pains and penalties
      32. of perjury.
      33. (i) For purposes of this section the following words and phrases have the following
      34. meanings:
        (1) “Gross patient-services revenue” means the gross revenue related to patient care
        
        services.
        
        (2) “High Medicaid/uninsured cost hospital” means a hospital for which the hospital’s total
        uncompensated care, as calculated pursuant to § 40-8.3-2(4), divided by the hospital’s total net
        
        patient-services revenues, is equal to six percent (6.0%) or greater.
        
        (3) “Hospital” means the actual facilities and buildings in existence in Rhode Island,
        
        licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on
        
        that license, regardless of changes in licensure status pursuant to chapter 17.14 of this title (hospital
        
        conversions) and § 23-17-6(b) (change in effective control), that provides short-term acute inpatient
        and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness,
        
        disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated Medicaid
        
        managed care payment rates for a court-approved purchaser that acquires a hospital through
        
        receivership, special mastership, or other similar state insolvency proceedings (which court-
        
        approved purchaser is issued a hospital license after January 1, 2013) shall be based upon the newly
        negotiated rates between the court-approved purchaser and the health plan, and such rates shall be
        
        effective as of the date that the court-approved purchaser and the health plan execute the initial
        
        agreement containing the newly negotiated rate. The rate-setting methodology for inpatient hospital
        
        payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and 40-8-13.4(b)(2),
        
        respectively, shall thereafter apply to negotiated increases for each annual twelve-month (12)
        period as of July 1 following the completion of the first full year of the court-approved purchaser’s
        
        initial Medicaid managed care contract.
        
        (4) “Independent hospitals” means a hospital not part of a multi-hospital system.
        
        (5) “Inpatient net patient-services revenue” means the charges related to inpatient care
        
        services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual
        
        allowances.
        (6) “Medicare-designated low-volume hospital” means a hospital that qualifies under 42
        
        C.F.R. 412.101(b)(2) for additional Medicare payments to qualifying hospitals for the higher
        
        incremental costs associated with a low volume of discharges.
        
        (7) “Net patient-services revenue” means the charges related to patient care services less
        
        (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual allowances.
        (8) “Non-government owned hospitals” means a hospital not owned and operated by the
        
        state of Rhode Island.
        
        (9) “Outpatient net patient-services revenue” means the charges related to outpatient care
        
        services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual
    1. allowances.
    2. (10) “Rehabilitative hospital” means Rehabilitation Hospital Center licensed by the Rhode
    3. Island department of health.
    4. (11) “State-government owned and operated hospitals” means a hospital facility licensed
    5. by the Rhode Island department of health, owned and operated by the state of Rhode Island.
    6. (j) The tax administrator in consultation with the executive office of health and human
    7. services shall make and promulgate any rules, regulations, and procedures not inconsistent with
    8. state law and fiscal procedures that he or she deems necessary for the proper administration of this
    9. section and to carry out the provisions, policy, and purposes of this section.
    10. (k) The licensing fee imposed by subsections (a) through (f) shall apply to hospitals as
    11. defined herein that are duly licensed on July 1, 2024, and shall be in addition to the inspection fee
    12. imposed by § 23-17-38 and to any licensing fees previously imposed in accordance with this
    13. section.
    14. SECTION 2. Sections 40-8-13.4 and 40-8-19 of the General Laws in Chapter 40-8 entitled
    15. “Medical Assistance” is hereby amended to read as follows:
    16. 40-8-13.4. Rate methodology for payment for in-state and out-of-state hospital
    17. services.
    18. (a) The executive office of health and human services (“executive office”) shall implement
    19. a new methodology for payment for in-state and out-of-state hospital services in order to ensure
    20. access to, and the provision of, high-quality and cost-effective hospital care to its eligible recipients.
    21. (b) In order to improve efficiency and cost-effectiveness, the executive office shall:
    22. (1)(i) With respect to inpatient services for persons in fee-for-service Medicaid, which is
    23. non-managed care, implement a new payment methodology for inpatient services utilizing the
    24. Diagnosis Related Groups (DRG) method of payment, which is, a patient-classification method
    25. that provides a means of relating payment to the hospitals to the type of patients cared for by the
    26. hospitals. It is understood that a payment method based on DRG may include cost outlier payments
    27. and other specific exceptions. The executive office will review the DRG-payment method and the
    28. DRG base price annually, making adjustments as appropriate in consideration of such elements as
    29. trends in hospital input costs; patterns in hospital coding; beneficiary access to care; and the Centers
    30. for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital
    31. Input Price Index. For the twelve-month (12) period beginning July 1, 2015, the DRG base rate for
    32. Medicaid fee-for-service inpatient hospital services shall not exceed ninety-seven and one-half
    33. percent (97.5%) of the payment rates in effect as of July 1, 2014. Beginning July 1, 2019, the DRG
    34. base rate for Medicaid fee-for-service inpatient hospital services shall be 107.2% of the payment
    1. rates in effect as of July 1, 2018. Increases in the Medicaid fee-for-service DRG hospital payments
    2. for the twelve-month (12) period beginning July 1, 2020, shall be based on the payment rates in
    3. effect as of July 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid
    4. Services national Prospective Payment System (IPPS) Hospital Input Price Index. Beginning July
    5. 1, 2022, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall be one
    6. hundred five percent (105%) of the payment rates in effect as of July 1, 2021. Beginning July 1,
    7. 2026, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall be one
    8. hundred and two and five-tenths percent (102.5%) of the payment rates in effect as of July 1, 2025.
    9. Increases in the Medicaid fee-for-service DRG hospital payments for each annual twelve-month
    10. (12) period beginning July 1, 20237, shall be based on the payment rates in effect as of July 1 of
    11. the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national
    12. Prospective Payment System (IPPS) Hospital Input Price Index.
    13. (ii) With respect to inpatient services, (A) It is required as of January 1, 2011, until
    14 December 31, 2011, that the Medicaid managed care payment rates between each hospital and
    1. health plan shall not exceed ninety and one-tenth percent (90.1%) of the rate in effect as of June
    2. 30, 2010. Increases in inpatient hospital payments for each annual twelve-month (12) period
    3. beginning January 1, 2012, may not exceed the Centers for Medicare and Medicaid Services
    4. national CMS Prospective Payment System (IPPS) Hospital Input Price Index for the applicable
    5. period; (B) Provided, however, for the twenty-four-month (24) period beginning July 1, 2013, the
    6. Medicaid managed care payment rates between each hospital and health plan shall not exceed the
    7. payment rates in effect as of January 1, 2013, and for the twelve-month (12) period beginning July
    8. 1, 2015, the Medicaid managed care payment inpatient rates between each hospital and health plan
    9. shall not exceed ninety-seven and one-half percent (97.5%) of the payment rates in effect as of
    24 January 1, 2013; (C) Increases in inpatient hospital payments for each annual twelve-month (12)
    1. period beginning July 1, 2017, shall be the Centers for Medicare and Medicaid Services national
    2. CMS Prospective Payment System (IPPS) Hospital Input Price Index, less Productivity
    3. Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1; (D)
    4. Beginning July 1, 2019, the Medicaid managed care payment inpatient rates between each hospital
    5. and health plan shall be 107.2% of the payment rates in effect as of January 1, 2019, and shall be
    6. paid to each hospital retroactively to July 1; (E) Increases in inpatient hospital payments for each
    7. annual twelve-month (12) period beginning July 1, 2020, shall be based on the payment rates in
    8. effect as of January 1 of the preceding fiscal year, and shall be the Centers for Medicare and
    9. Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index,
    10. less Productivity Adjustment, for the applicable period and shall be paid to each hospital
    1. retroactively to July 1; the executive office will develop an audit methodology and process to assure
    2. that savings associated with the payment reductions will accrue directly to the Rhode Island
    3. Medicaid program through reduced managed care plan payments and shall not be retained by the
    4. managed care plans; (F) Beginning July 1, 2022, the Medicaid managed care payment inpatient
    5. rates between each hospital and health plan shall be one hundred five percent (105%) of the
    6. payment rates in effect as of January 1, 2022, and shall be paid to each hospital retroactively to July
    7. 1 within ninety days of passage; (G) Beginning July 1, 2026, the Medicaid managed care payment
    8. inpatient rates between each hospital and health plan shall be one hundred and two and five-tenths
    9. percent (102.5%) of the payment rates in effect as of January 1, 2025; (H) Increases in inpatient
    10. hospital payments for each annual twelve-month (12) period beginning July 1, 20237, shall be
    11. based on the payment rates in effect as of January 1 of the preceding fiscal year, and shall be the
    12. Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS)
    13. Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be
    14. paid to each hospital retroactively to July 1 within ninety days of passage; (HI) All hospitals
    15. licensed in Rhode Island shall accept such payment rates as payment in full; and (IJ) For all such
    16. hospitals, compliance with the provisions of this section shall be a condition of participation in the
    17. Rhode Island Medicaid program.
    18. (2) With respect to outpatient services and notwithstanding any provisions of the law to the
    19. contrary, for persons enrolled in fee-for-service Medicaid, the executive office will reimburse
    20. hospitals for outpatient services using a rate methodology determined by the executive office and
    21. in accordance with federal regulations. Fee-for-service outpatient rates shall align with Medicare
    22. payments for similar services. Notwithstanding the above, there shall be no increase in the
    23. Medicaid fee-for-service outpatient rates effective on July 1, 2013, July 1, 2014, or July 1, 2015.
    24. For the twelve-month (12) period beginning July 1, 2015, Medicaid fee-for-service outpatient rates
    25. shall not exceed ninety-seven and one-half percent (97.5%) of the rates in effect as of July 1, 2014.
    26. Increases in the outpatient hospital payments for the twelve-month (12) period beginning July 1,
    27. 2016, may not exceed the CMS national Outpatient Prospective Payment System (OPPS) Hospital
    28. Input Price Index. Beginning July 1, 2019, the Medicaid fee-for-service outpatient rates shall be
    29. 107.2% of the payment rates in effect as of July 1, 2018. Increases in the outpatient hospital
    30. payments for the twelve-month (12) period beginning July 1, 2020, shall be based on the payment
    31. rates in effect as of July 1 of the preceding fiscal year, and shall be the CMS national Outpatient
    32. Prospective Payment System (OPPS) Hospital Input Price Index. Beginning July 1, 2022, the
    33. Medicaid fee-for-service outpatient rates shall be one hundred five percent (105%) of the payment
    34. rates in effect as of July 1, 2021. Beginning July 1, 2026, the Medicaid fee-for-service outpatient
    1. rates shall be one hundred and two and five-tenths percent (102.5%) of the payment rates in effect
    2. as of July 1, 2025. Increases in the outpatient hospital payments for each annual twelve-month (12)
    3. period beginning July 1, 20237, shall be based on the payment rates in effect as of July 1 of the
    4. preceding fiscal year, and shall be the CMS national Outpatient Prospective Payment System
    5. (OPPS) Hospital Input Price Index. With respect to the outpatient rate, (i) It is required as of January
    6. 1, 2011, until December 31, 2011, that the Medicaid managed care payment rates between each
    7. hospital and health plan shall not exceed one hundred percent (100%) of the rate in effect as of June
    8. 30, 2010; (ii) Increases in hospital outpatient payments for each annual twelve-month (12) period
    9. beginning January 1, 2012, until July 1, 2017, may not exceed the Centers for Medicare and
    10. Medicaid Services national CMS Outpatient Prospective Payment System OPPS Hospital Price
    11. Index for the applicable period; (iii) Provided, however, for the twenty-four-month (24) period
    12. beginning July 1, 2013, the Medicaid managed care outpatient payment rates between each hospital
    13. and health plan shall not exceed the payment rates in effect as of January 1, 2013, and for the
    14. twelve-month (12) period beginning July 1, 2015, the Medicaid managed care outpatient payment
    15. rates between each hospital and health plan shall not exceed ninety-seven and one-half percent
    16. (97.5%) of the payment rates in effect as of January 1, 2013; (iv) Increases in outpatient hospital
    17. payments for each annual twelve-month (12) period beginning July 1, 2017, shall be the Centers
    18. for Medicare and Medicaid Services national CMS OPPS Hospital Input Price Index, less
    19. Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively
    20. to July 1; (v) Beginning July 1, 2019, the Medicaid managed care outpatient payment rates between
    21. each hospital and health plan shall be one hundred seven and two-tenths percent (107.2%) of the
    22. payment rates in effect as of January 1, 2019, and shall be paid to each hospital retroactively to July
    23. 1; (vi) Increases in outpatient hospital payments for each annual twelve-month (12) period
    24. beginning July 1, 2020, shall be based on the payment rates in effect as of January 1 of the preceding
    25. fiscal year, and shall be the Centers for Medicare and Medicaid Services national CMS OPPS
    26. Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be
    27. paid to each hospital retroactively to July 1; (vii) Beginning July 1, 2022, the Medicaid managed
    28. care outpatient payment rates between each hospital and health plan shall be one hundred five
    29. percent (105%) of the payment rates in effect as of January 1, 2022, and shall be paid to each
    30. hospital retroactively to July 1 within ninety days of passage; (viii) Beginning July 1, 2026, the
    31. Medicaid managed care outpatient payment rates between each hospital and health plan shall be
    32. one hundred and two and five-tenths percent (102.5%) of the payment rates in effect as of January
    33. 1, 2025; (ix) Increases in outpatient hospital payments for each annual twelve-month (12) period
    34. beginning July 1, 20207, shall be based on the payment rates in effect as of January 1 of the
    1. preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national CMS
    2. OPPS Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall
    3. be paid to each hospital retroactively to July 1.
    4. (3) “Hospital,” as used in this section, shall mean the actual facilities and buildings in
    5. existence in Rhode Island, licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter
    6. any premises included on that license, regardless of changes in licensure status pursuant to chapter
    7. 17.14 of title 23 (hospital conversions) and § 23-17-6(b) (change in effective control), that provides
    8. short-term, acute inpatient and/or outpatient care to persons who require definitive diagnosis and
    9. treatment for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language,
    10. the Medicaid managed care payment rates for a court-approved purchaser that acquires a hospital
    11. through receivership, special mastership or other similar state insolvency proceedings (which court-
    12. approved purchaser is issued a hospital license after January 1, 2013), shall be based upon the new
    13. rates between the court-approved purchaser and the health plan, and such rates shall be effective as
    14. of the date that the court-approved purchaser and the health plan execute the initial agreement
    15. containing the new rates. The rate-setting methodology for inpatient-hospital payments and
    16. outpatient-hospital payments set forth in subsections (b)(1)(ii)(C) and (b)(2), respectively, shall
    17. thereafter apply to increases for each annual twelve-month (12) period as of July 1 following the
    18. completion of the first full year of the court-approved purchaser’s initial Medicaid managed care
    19. contract.
    20. (c) It is intended that payment utilizing the DRG method shall reward hospitals for
    21. providing the most efficient care, and provide the executive office the opportunity to conduct value-
    22. based purchasing of inpatient care.
    23. (d) The secretary of the executive office is hereby authorized to promulgate such rules and
    24. regulations consistent with this chapter, and to establish fiscal procedures he or she deems
    25. necessary, for the proper implementation and administration of this chapter in order to provide
    26. payment to hospitals using the DRG-payment methodology. Furthermore, amendment of the Rhode
    27. Island state plan for Medicaid, pursuant to Title XIX of the federal Social Security Act, 42 U.S.C.
    28. § 1396 et seq., is hereby authorized to provide for payment to hospitals for services provided to
    29. eligible recipients in accordance with this chapter.
    30. (e) The executive office shall comply with all public notice requirements necessary to
    31. implement these rate changes.
    32. (f) As a condition of participation in the DRG methodology for payment of hospital
    33. services, every hospital shall submit year-end settlement reports to the executive office within one
    34. year from the close of a hospital’s fiscal year. Should a participating hospital fail to timely submit
    1. a year-end settlement report as required by this section, the executive office shall withhold
    2. financial-cycle payments due by any state agency with respect to this hospital by not more than ten
    3. percent (10%) until the report is submitted. For hospital fiscal year 2010 and all subsequent fiscal
    4. years, hospitals will not be required to submit year-end settlement reports on payments for
    5. outpatient services. For hospital fiscal year 2011 and all subsequent fiscal years, hospitals will not
    6. be required to submit year-end settlement reports on claims for hospital inpatient services. Further,
    7. for hospital fiscal year 2010, hospital inpatient claims subject to settlement shall include only those
    8. claims received between October 1, 2009, and June 30, 2010.
    9. (g) The provisions of this section shall be effective upon implementation of the new
    10. payment methodology set forth in this section and § 40-8-13.3, which shall in any event be no later
    11. than March 30, 2010, at which time the provisions of §§ 40-8-13.2, 27-19-14, 27-19-15, and 27-
    12. 19-16 shall be repealed in their entirety.
    13. 40-8-19. Rates of payment to nursing facilities.
    14. (a) Rate reform.
    15. (1) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of
    16. title 23, and certified to participate in Title XIX of the Social Security Act for services rendered to
    17. Medicaid-eligible residents, shall be reasonable and adequate to meet the costs that must be
    18. incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. §
    19. 1396a(a)(13). The executive office of health and human services (“executive office”) shall
    20. promulgate or modify the principles of reimbursement for nursing facilities in effect as of July 1,
    21. 2011, to be consistent with the provisions of this section and Title XIX, 42 U.S.C. § 1396 et seq.,
    22. of the Social Security Act.
    23. (2) The executive office shall review the current methodology for providing Medicaid
    24. payments to nursing facilities, including other long-term care services providers, and is authorized
    25. to modify the principles of reimbursement to replace the current cost-based methodology rates with
    26. rates based on a price-based methodology to be paid to all facilities with recognition of the acuity
    27. of patients and the relative Medicaid occupancy, and to include the following elements to be
    28. developed by the executive office:
    29. (i) A direct-care rate adjusted for resident acuity;
    30. (ii) An indirect-care and other direct-care rate comprised of a base per diem for all
    31. facilities;
    32. (iii) Revision of rates as necessary based on increases in direct and indirect costs beginning
    33. October 2024 utilizing data from the most recent finalized year of facility cost report. The per diem
    34. rate components deferred in subsections (a)(2)(i) and (a)(2)(ii) of this section shall be adjusted
    1. accordingly to reflect changes in direct and indirect care costs since the previous rate review;
    2. (iv) Application of a fair-rental value system;
    3. (v) Application of a pass-through system; and
    4. (vi) Adjustment of rates by the change in a recognized national nursing home inflation
    5. index to be applied on October 1 of each year, beginning October 1, 2012. This adjustment will not
    6. occur on October 1, 2013, October 1, 2014, or October 1, 2015, but will occur on April 1, 2015.
    7. The adjustment of rates will also not occur on October 1, 2017, October 1, 2018, October 1, 2019,
    8. and October 2022. Effective July 1, 2018, rates paid to nursing facilities from the rates approved
    9. by the Centers for Medicare and Medicaid Services and in effect on October 1, 2017, both fee-for-
    10. service and managed care, will be increased by one and one-half percent (1.5%) and further
    11. increased by one percent (1%) on October 1, 2018, and further increased by one percent (1%) on
    12 October 1, 2019. Effective October 1, 2022, rates paid to nursing facilities from the rates approved
    1. by the Centers for Medicare and Medicaid Services and in effect on October 1, 2021, both fee-for-
    2. service and managed care, will be increased by three percent (3%). In addition to the annual nursing
    3. home inflation index adjustment, there shall be a base rate staffing adjustment of one-half percent
    4. (0.5%) on October 1, 2021, one percent (1.0%) on October 1, 2022, and one and one-half percent
    5. (1.5%) on October 1, 2023. For the twelve-month (12) period beginning October 1, 2025, rates paid
    6. to nursing facilities from the rates approved by the Centers for Medicare and Medicaid Services
    7. and in effect on October 1, 2024, both fee-for-service and managed care, will be increased by two
    8. and three-tenths percent (2.3%). There shall also be a base rate staffing adjustment of three percent
    9. (3%) effective October 1, 2025. Not less than one hundred percent (100%) of this base-rate staffing
    10. adjustment shall be expended by each nursing facility to increase compensation, wages, benefits,
    11. and related employer costs, for eligible direct-care staff, including the cost of hiring additional
    12. eligible direct-care positions, as defined in this subsection (a)(2)(vi). The inflation index shall be
    13. applied without regard for the transition factors in subsections (b)(1) and (b)(2). Effective October
    14. 1, 2026, rates paid to nursing facilities from the rates approved by the Centers for Medicare and
    15. Medicaid Services and in effect on October 1, 2025, both fee-for-service and managed care, shall
    16. be increased by two and five-tenths percent (2.5%). For purposes of October 1, 2016, adjustment
    17. only, any rate increase that results from application of the inflation index to subsections (a)(2)(i)
    18. and (a)(2)(ii) shall be dedicated to increase compensation for direct-care workers in the following
    19. manner: Not less than eighty-five percent (85%) of this aggregate amount shall be expended to
    20. fund an increase in wages, benefits, or related employer costs of direct-care staff of nursing homes.
    21. For purposes of this section, direct-care staff shall include registered nurses (RNs), licensed
    22. practical nurses (LPNs), certified nursing assistants (CNAs), certified medical technicians,
    1. housekeeping staff, laundry staff, dietary staff, or other similar employees providing direct-care
    2. services; provided, however, that this definition of direct-care staff shall not include: (i) RNs and
    3. LPNs who are classified as “exempt employees” under the federal Fair Labor Standards Act (29
    4. U.S.C. § 201 et seq.); or (ii) CNAs, certified medical technicians, RNs, or LPNs who are contracted,
    5. or subcontracted, through a third-party vendor or staffing agency. By July 31, 2017, nursing
    6. facilities shall submit to the secretary, or designee, a certification that they have complied with the
    7. provisions of this subsection (a)(2)(vi) with respect to the inflation index applied on October 1,
    8. 2016. Any facility that does not comply with the terms of such certification shall be subjected to a
    9. clawback, paid by the nursing facility to the state, in the amount of increased reimbursement subject
    10. to this provision that was not expended in compliance with that certification.
    11. (3) Commencing on October 1, 2021, eighty percent (80%) of any rate increase that results
    12. from application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii) of this section shall be
    13. dedicated to increase compensation for all eligible direct-care workers in the following manner on
    14 October 1, of each year.
    1. (i) For purposes of this subsection, compensation increases shall include base salary or
    2. hourly wage increases, benefits, other compensation, and associated payroll tax increases for
    3. eligible direct-care workers. This application of the inflation index shall apply for Medicaid
    4. reimbursement in nursing facilities for both managed care and fee-for-service. For purposes of this
    5. subsection, direct-care staff shall include registered nurses (RNs), licensed practical nurses (LPNs),
    6. certified nursing assistants (CNAs), certified medication technicians, licensed physical therapists,
    7. licensed occupational therapists, licensed speech-language pathologists, mental health workers
    8. who are also certified nurse assistants, physical therapist assistants, social workers, or any nurse
    9. aides with a valid license, even if it is probationary, housekeeping staff, laundry staff, dietary staff,
    10. or other similar employees providing direct-care services; provided, however that this definition of
    11. direct-care staff shall not include:
    12. (A) RNs and LPNs who are classified as “exempt employees” under the federal Fair Labor
    13. Standards Act (29 U.S.C. § 201 et seq.); or
    14. (B) CNAs, certified medication technicians, RNs, or LPNs who are contracted or
    15. subcontracted through a third-party vendor or staffing agency.
    16. (4)(i) By July 31, 2021, and July 31 of each year thereafter, nursing facilities shall submit
    17. to the secretary or designee a certification that they have complied with the provisions of subsection
    18. (a)(3) of this section with respect to the inflation index applied on October 1. The executive office
    19. of health and human services (EOHHS) shall create the certification form nursing facilities must
    20. complete with information on how each individual eligible employee’s compensation increased,
    1. including information regarding hourly wages prior to the increase and after the compensation
    2. increase, hours paid after the compensation increase, and associated increased payroll taxes. A
    3. collective bargaining agreement can be used in lieu of the certification form for represented
    4. employees. All data reported on the compliance form is subject to review and audit by EOHHS.
    5. The audits may include field or desk audits, and facilities may be required to provide additional
    6. supporting documents including, but not limited to, payroll records.
    7. (ii) Any facility that does not comply with the terms of certification shall be subjected to a
    8. clawback and twenty-five percent (25%) penalty of the unspent or impermissibly spent funds, paid
    9. by the nursing facility to the state, in the amount of increased reimbursement subject to this
    10. provision that was not expended in compliance with that certification. There shall be created within
    11. the general fund of the state and housed within the budget of the executive office of health and
    12. human services a restricted receipt account entitled “Nursing Facility Rate Adjustment Wage Pass-
    13. through Compliance” for the express purpose of recording receipts and expenditures of the
    14. aforementioned penalty. Funds deposited into the account shall be used for workforce development
    15. and compliance assistance programs.
    16. (iii) In any calendar year where no inflationary index is applied, eighty percent (80%) of
    17. the base rate staffing adjustment in that calendar year pursuant to subsection (a)(2)(vi) of this
    18. section shall be dedicated to increase compensation for all eligible direct-care workers in the
    19. manner referenced in subsections (a)(3)(i), (a)(3)(i)(A), and (a)(3)(i)(B) of this section.
    20. (b) Transition to full implementation of rate reform.
    21. For no less than four (4) years after the initial application of the price-based methodology
    22. described in subsection (a)(2) to payment rates, the executive office of health and human services
    23. shall implement a transition plan to moderate the impact of the rate reform on individual nursing
    24. facilities. The transition shall include the following components:
    25. (1) No nursing facility shall receive reimbursement for direct-care costs that is less than
    26. the rate of reimbursement for direct-care costs received under the methodology in effect at the time
    27. of passage of this act; for the year beginning October 1, 2017, the reimbursement for direct-care
    28. costs under this provision will be phased out in twenty-five-percent (25%) increments each year
    29. until October 1, 2021, when the reimbursement will no longer be in effect; and
    30. (2) No facility shall lose or gain more than five dollars ($5.00) in its total, per diem rate the
    31. first year of the transition. An adjustment to the per diem loss or gain may be phased out by twenty-
    32. five percent (25%) each year; except, however, for the years beginning October 1, 2015, there shall
    33. be no adjustment to the per diem gain or loss, but the phase out shall resume thereafter; and
    34. (3) The transition plan and/or period may be modified upon full implementation of facility
      1. per diem rate increases for quality of care-related measures. Said modifications shall be submitted
      2. in a report to the general assembly at least six (6) months prior to implementation.
      3. (4) Notwithstanding any law to the contrary, for the twelve-month (12) period beginning
    4 July 1, 2015, Medicaid payment rates for nursing facilities established pursuant to this section shall
    1. not exceed ninety-eight percent (98%) of the rates in effect on April 1, 2015. Consistent with the
    2. other provisions of this chapter, nothing in this provision shall require the executive office to restore
    3. the rates to those in effect on April 1, 2015, at the end of this twelve-month (12) period.
    4. SECTION 3. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled
    5. "Uncompensated Care" are hereby amended to read as follows:
    6. 40-8.3-2. Definitions.
    7. As used in this chapter:
    8. (1) “Base year” means, for the purpose of calculating a disproportionate share payment for
    9. any fiscal year ending after September 30, 20245, the period from October 1, 20223, through
    14 September 30, 20234, and for any fiscal year ending after September 30, 20256, the period from
    15 October 1, 20234, through September 30, 20245.
16. (2) “Medicaid inpatient utilization rate for a hospital” means a fraction (expressed as a
17. percentage), the numerator of which is the hospital’s number of inpatient days during the base year
18. attributable to patients who were eligible for medical assistance during the base year and the
19. denominator of which is the total number of the hospital’s inpatient days in the base year.
20. (3) “Participating hospital” means any nonpsychiatric hospital that:
21. (i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base year
22. and shall mean the actual facilities and buildings in existence in Rhode Island, licensed pursuant to
23. § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless
24. of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital conversions) and § 23-
25. 17-6(b) (change in effective control), that provides acute inpatient and/or outpatient care to persons
26. who require definitive diagnosis and treatment for injury, illness, disabilities, or pregnancy.
27. Notwithstanding the preceding language, the negotiated Medicaid managed care payment rates for
28. a court-approved purchaser that acquires a hospital through receivership, special mastership, or
29. other similar state insolvency proceedings (which court-approved purchaser is issued a hospital
30. license after January 1, 2013), shall be based upon the newly negotiated rates between the court-
31. approved purchaser and the health plan, and the rates shall be effective as of the date that the court-
32. approved purchaser and the health plan execute the initial agreement containing the newly
33. negotiated rate. The rate-setting methodology for inpatient hospital payments and outpatient
34. hospital payments set forth in §§ 40-8-13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall

thereafter apply to negotiated increases for each annual twelve-month (12) period as of July 1
following the completion of the first full year of the court-approved purchaser’s initial Medicaid
managed care contract;
(ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%)
during the base year; and
(iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during
the payment year.
(4) “Uncompensated-care costs” means, as to any hospital, the sum of: (i) The cost incurred
by the hospital during the base year for inpatient or outpatient services attributable to charity care
(free care and bad debts) for which the patient has no health insurance or other third-party coverage
less payments, if any, received directly from such patients; (ii) The cost incurred by the hospital
during the base year for inpatient or outpatient services attributable to Medicaid beneficiaries less
any Medicaid reimbursement received therefor; and (iii) the sum of subsections (4)(i) and (4)(ii) of
this section shall be offset by the estimated hospital’s commercial equivalent rates state directed
payment for the current SFY in which the disproportionate share hospital (DSH) payment is made.
The sum of subsections (4)(i), (4)(ii), and (4)(iii) of this section shall be multiplied by the
uncompensated care index.
(5) “Uncompensated-care index” means the annual percentage increase for hospitals
established pursuant to § 27-19-14 [repealed] for each year after the base year, up to and including
the payment year; provided, however, that the uncompensated-care index for the payment year
ending September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent (5.38%),
and that the uncompensated-care index for the payment year ending September 30, 2008, shall be
deemed to be five and forty-seven hundredths percent (5.47%), and that the uncompensated-care
index for the payment year ending September 30, 2009, shall be deemed to be five and thirty-eight
hundredths percent (5.38%), and that the uncompensated-care index for the payment years ending

26 September 30, 2010, September 30, 2011, September 30, 2012, September 30, 2013, September

27 30, 2014, September 30, 2015, September 30, 2016, September 30, 2017, September 30, 2018,

28 September 30, 2019, September 30, 2020, September 30, 2021, September 30, 2022, September

30, 2023, September 30, 2024, September 30, 2025, and September 30, 2026, and September 30,
2027 shall be deemed to be five and thirty hundredths percent (5.30%).
40-8.3-3. Implementation.
(a) For federal fiscal year 2024, commencing on October 1, 2023, and ending September
30, 2024, the executive office of health and human services shall submit to the Secretary of the
United States Department of Health and Human Services a state plan amendment to the Rhode

Island Medicaid DSH Plan to provide:
(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of
$14.8 million, shall be allocated by the executive office of health and human services to the Pool
D component of the DSH Plan; and
(2) That the Pool D allotment shall be distributed among the participating hospitals in direct
proportion to the individual participating hospital’s uncompensated-care costs for the base year,
inflated by the uncompensated-care index to the total uncompensated-care costs for the base year
inflated by the uncompensated-care index for all participating hospitals. The disproportionate share
payments shall be made on or before June 30, 2024, and are expressly conditioned upon approval
on or before June 23, 2024, by the Secretary of the United States Department of Health and Human
Services, or their authorized representative, of all Medicaid state plan amendments necessary to
secure for the state the benefit of federal financial participation in federal fiscal year 2024 for the
disproportionate share payments.
(b) (a) For federal fiscal year 2025, commencing on October 1, 2024, and ending on

15 September 30, 2025, the executive office of health and human services shall submit to the Secretary

of the United States Department of Health and Human Services a state plan amendment to the
Rhode Island Medicaid DSH plan to provide:
(1) The creation of Pool C which allots no more than twelve million nine hundred thousand
dollars ($12,900,000) to Medicaid eligible government-owned hospitals;
(2) That the DSH plan to all participating hospitals, not to exceed an aggregate limit of
$27.7 million, shall be allocated by the executive office of health and human services to the Pool
C and D components of the DSH plan;
(3) That the Pool D allotment shall be distributed among the participating hospitals in direct
proportion to the individual participating hospital’s uncompensated-care costs for the base year,
inflated by the uncompensated-care index to the total uncompensated-care costs for the base year
inflated by the uncompensated-care index of all participating hospitals. The disproportionate share
payments shall be made on or before June 30, 2025, and are expressly conditioned upon approval
on or before June 23, 2025, by the Secretary of the United States Department of Health and Human
Services, or their authorized representative, of all Medicaid state plan amendments necessary to
secure for the state the benefit of federal financial participation in federal fiscal year 2025 for the
disproportionate share payments; and
(4) That the Pool C allotment shall be distributed among the participating hospitals in direct
proportion to the individual participating hospital’s uncompensated-care costs for the base year,
inflated by the uncompensated-care index to the total uncompensated-care cost for the base year

inflated by the uncompensated-care index of all participating hospitals. The disproportionate share
payments shall be made on or before June 30, 2025, and are expressly conditioned upon approval
on or before June 23, 2025, by the Secretary of the United States Department of Health and Human
Services, or their authorized representative, of all Medicaid state plan amendments necessary to
secure for the state the benefit of federal financial participation in federal fiscal year 2025 for the
disproportionate share payments.
(c) (b) For federal fiscal year 2026, commencing on October 1, 2025, and ending on

8 September 30, 2026, the executive office of health and human services shall submit to the Secretary

of the United States Department of Health and Human Services a state plan amendment to the
Rhode Island Medicaid DSH plan to provide:
(1) That the DSH plan to all participating hospitals, not to exceed an aggregate limit of
$13.9 million, shall be allocated by the executive office of health and human services to the Pool
C and D components of the DSH plan. Pool C shall not exceed an aggregate limit of $12.9 million.
Pool D shall not exceed an aggregate limit of $1.0 million;
(2) That the Pool C allotment shall be distributed among the participating hospitals in direct
proportion to the individual participating hospital’s uncompensated-care costs for the base year,
inflated by the uncompensated-care index to the total uncompensated-care cost for the base year
inflated by the uncompensated-care index of all participating hospitals. The disproportionate share
payments shall be made on or before June 30, 2026, and are expressly conditioned upon approval
on or before June 23, 2026, by the Secretary of the United States Department of Health and Human
Services, or their authorized representative, of all Medicaid state plan amendments necessary to
secure for the state the benefit of federal financial participation in federal fiscal year 2026 for the
disproportionate share payments; and
(3) That the Pool D allotment shall be distributed among the participating hospitals in direct
proportion to the individual participating hospital’s uncompensated-care costs for the base year,
inflated by the uncompensated-care index to the total uncompensated-care costs for the base year
inflated by the uncompensated-care index of all participating hospitals. The disproportionate share
payments shall be made on or before June 30, 2026, and are expressly conditioned upon approval
on or before June 23, 2026, by the Secretary of the United States Department of Health and Human
Services, or their authorized representative, of all Medicaid state plan amendments necessary to
secure for the state the benefit of federal financial participation in federal fiscal year 2026 for the
disproportionate share payments.
(c) For federal fiscal year 2027, commencing on October 1, 2026, and ending on September
30, 2027, the DSH plan for all participating hospitals shall not exceed an aggregate limit of $23.9

million and shall be allocated by the executive office of health and human services to the Pool C
and D components of the DSH plan. The Pool C component of the DSH plan shall not exceed an
aggregate limit of $12.9 million. The Pool D component of the DSH plan shall not exceed an
aggregate limit of $11.0 million.
(1) The Pool C allotment shall be distributed among the participating hospitals in direct
proportion to each individual participating hospital’s uncompensated-care costs for the base year,
inflated by the uncompensated-care index as described in §40-8.3-2(5). The DSH payments shall
be made on or before June 30, 2027; and,
(2) The Pool D allotment shall be distributed among the participating hospitals in direct
proportion to the individual participating hospital’s uncompensated-care costs for the base year,
inflated by the uncompensated-care index as described in §40-8.3-2(5). The disproportionate share
payments shall be made on or before June 30, 2027.
(d) No provision is made pursuant to this chapter for disproportionate-share hospital
payments to participating hospitals for uncompensated-care costs related to graduate medical
education programs.
(e) The executive office of health and human services is directed, on at least a monthly
basis, to collect patient-level uninsured information, including, but not limited to, demographics,
services rendered, and reason for uninsured status from all hospitals licensed in Rhode Island.

19 (f) [Deleted by P.L. 2019, ch. 88, art. 13, § 6.]

SECTION 4. Section 42-7.2-5 of the General Laws in Chapter 42-7.2 entitled "Office of
Health and Human Services” is hereby amended to read as follows:
42-7.2-5. Duties of the secretary.
The secretary shall be subject to the direction and supervision of the governor for the
oversight, coordination, and cohesive direction of state-administered health and human services
and in ensuring the laws are faithfully executed, notwithstanding any law to the contrary. In this
capacity, the secretary of the executive office of health and human services (EOHHS) shall be
authorized to:
(1) Coordinate the administration and financing of healthcare benefits, human services, and
programs including those authorized by the state’s Medicaid section 1115 demonstration waiver
and, as applicable, the Medicaid state plan under Title XIX of the U.S. Social Security Act.
However, nothing in this section shall be construed as transferring to the secretary the powers,
duties, or functions conferred upon the departments by Rhode Island public and general laws for
the administration of federal/state programs financed in whole or in part with Medicaid funds or
the administrative responsibility for the preparation and submission of any state plans, state plan

amendments, or authorized federal waiver applications, once approved by the secretary.
(2) Serve as the governor’s chief advisor and liaison to federal policymakers on Medicaid
reform issues as well as the principal point of contact in the state on any such related matters.
(3)(i) Review and ensure the coordination of the state’s Medicaid section 1115
demonstration waiver requests and renewals as well as any initiatives and proposals requiring
amendments to the Medicaid state plan or formal amendment changes, as described in the special
terms and conditions of the state’s Medicaid section 1115 demonstration waiver with the potential
to affect the scope, amount, or duration of publicly funded healthcare services, provider payments
or reimbursements, or access to or the availability of benefits and services as provided by Rhode
Island general and public laws. The secretary shall consider whether any such changes are legally
and fiscally sound and consistent with the state’s policy and budget priorities. The secretary shall
also assess whether a proposed change is capable of obtaining the necessary approvals from federal
officials and achieving the expected positive consumer outcomes. Department directors shall,
within the timelines specified, provide any information and resources the secretary deems necessary
in order to perform the reviews authorized in this section.
(ii) Direct the development and implementation of any Medicaid policies, procedures, or
systems that may be required to assure successful operation of the state’s health and human services
integrated eligibility system and coordination with HealthSource RI, the state’s health insurance
marketplace.
(iii) Beginning in 2015, conduct on a biennial basis a comprehensive review of the
Medicaid eligibility criteria for one or more of the populations covered under the state plan or a
waiver to ensure consistency with federal and state laws and policies, coordinate and align systems,
and identify areas for improving quality assurance, fair and equitable access to services, and
opportunities for additional financial participation.
(iv) Implement service organization and delivery reforms that facilitate service integration,
increase value, and improve quality and health outcomes.
(4) Beginning in 2020, prepare and submit to the governor, the chairpersons of the house
and senate finance committees, the caseload estimating conference, and to the joint legislative
committee for health-care oversight, by no later than September 15 of each year, a comprehensive
overview of all Medicaid expenditures outcomes, administrative costs, and utilization rates. The
overview shall include, but not be limited to, the following information:
(i) Expenditures under Titles XIX and XXI of the Social Security Act, as amended;
(ii) Expenditures, outcomes, and utilization rates by population and sub-population served
(e.g., families with children, persons with disabilities, children in foster care, children receiving

adoption assistance, adults ages nineteen (19) to sixty-four (64), and elders);
(iii) Expenditures, outcomes, and utilization rates by each state department or other
municipal or public entity receiving federal reimbursement under Titles XIX and XXI of the Social
Security Act, as amended;
(iv) Expenditures, outcomes, and utilization rates by type of service and/or service
provider;
(v) Expenditures by mandatory population receiving mandatory services and, reported
separately, optional services, as well as optional populations receiving mandatory services and,
reported separately, optional services for each state agency receiving Title XIX and XXI funds; and
(vi) Information submitted to the Centers for Medicare & Medicaid Services for the
mandatory annual state reporting of the Core Set of Children’s Health Care Quality Measures for
Medicaid and Children’s Health Insurance Program, behavioral health measures on the Core Set of
Adult Health Care Quality Measures for Medicaid and the Core Sets of Health Home Quality
Measures for Medicaid to ensure compliance with the Bipartisan Budget Act of 2018, Pub. L. No.
115-123.
The directors of the departments, as well as local governments and school departments,
shall assist and cooperate with the secretary in fulfilling this responsibility by providing whatever
resources, information, and support shall be necessary.
(5) Resolve administrative, jurisdictional, operational, program, or policy conflicts among
departments and their executive staffs and make necessary recommendations to the governor.
(6) Ensure continued progress toward improving the quality, the economy, the
accountability, and the efficiency of state-administered health and human services. In this capacity,
the secretary shall:
(i) Direct implementation of reforms in the human resources practices of the executive
office and the departments that streamline and upgrade services, achieve greater economies of scale
and establish the coordinated system of the staff education, cross-training, and career development
services necessary to recruit and retain a highly-skilled, responsive, and engaged health and human
services workforce;
(ii) Encourage EOHHS-wide consumer-centered approaches to service design and delivery
that expand their capacity to respond efficiently and responsibly to the diverse and changing needs
of the people and communities they serve;
(iii) Develop all opportunities to maximize resources by leveraging the state’s purchasing
power, centralizing fiscal service functions related to budget, finance, and procurement,
centralizing communication, policy analysis and planning, and information systems and data

management, pursuing alternative funding sources through grants, awards, and partnerships and
securing all available federal financial participation for programs and services provided EOHHS-
wide;
(iv) Improve the coordination and efficiency of health and human services legal functions
by centralizing adjudicative and legal services and overseeing their timely and judicious
administration;
(v) Facilitate the rebalancing of the long-term system by creating an assessment and
coordination organization or unit for the expressed purpose of developing and implementing
procedures EOHHS-wide that ensure that the appropriate publicly funded health services are
provided at the right time and in the most appropriate and least restrictive setting;
(vi) Strengthen health and human services program integrity, quality control and
collections, and recovery activities by consolidating functions within the office in a single unit that
ensures all affected parties pay their fair share of the cost of services and are aware of alternative
financing;
(vii) Assure protective services are available to vulnerable elders and adults with
developmental and other disabilities by reorganizing existing services, establishing new services
where gaps exist, and centralizing administrative responsibility for oversight of all related
initiatives and programs.
(7) Prepare and integrate comprehensive budgets for the health and human services
departments and any other functions and duties assigned to the office. The budgets shall be
submitted to the state budget office by the secretary, for consideration by the governor, on behalf
of the state’s health and human services agencies in accordance with the provisions set forth in §
35-3-4.
(8) Utilize objective data to evaluate health and human services policy goals, resource use
and outcome evaluation and to perform short and long-term policy planning and development.
(9) Establish an integrated approach to interdepartmental information and data
management that complements and furthers the goals of the unified health infrastructure project
initiative and that will facilitate the transition to a consumer-centered integrated system of state-
administered health and human services.
(10) At the direction of the governor or the general assembly, conduct independent reviews
of state-administered health and human services programs, policies, and related agency actions and
activities and assist the department directors in identifying strategies to address any issues or areas
of concern that may emerge thereof. The department directors shall provide any information and
assistance deemed necessary by the secretary when undertaking such independent reviews.
1. (11) Provide regular and timely reports to the governor and make recommendations with
2. respect to the state’s health and human services agenda.
3. (12) Employ such personnel and contract for such consulting services as may be required
4. to perform the powers and duties lawfully conferred upon the secretary.
5. (13) Assume responsibility for complying with the provisions of any general or public law
6. or regulation related to the disclosure, confidentiality, and privacy of any information or records,
7. in the possession or under the control of the executive office or the departments assigned to the
8. executive office, that may be developed or acquired or transferred at the direction of the governor
9. or the secretary for purposes directly connected with the secretary’s duties set forth herein.
10. (14) Hold the director of each health and human services department accountable for their
11. administrative, fiscal, and program actions in the conduct of the respective powers and duties of
12. their agencies.
13. (15) Identify opportunities for inclusion with the EOHHS’ October 1, 2023, budget
14. submission, to remove fixed eligibility thresholds for programs under its purview by establishing
15. sliding scale decreases in benefits commensurate with income increases up to four hundred fifty
16. percent (450%) of the federal poverty level. These shall include but not be limited to, medical
17. assistance, childcare assistance, and food assistance.
18. (16) Ensure that insurers minimize administrative burdens on providers that may delay
19. medically necessary care, including requiring that insurers do not impose a prior authorization
20. requirement for any admission, item, service, treatment, or procedure ordered by an in-network
21. primary care provider. Provided, the prohibition shall not be construed to prohibit prior
22. authorization requirements for prescription drugs. Provided further, that as used in this subsection
23. (16) of this section, the terms “insurer,” “primary care provider,” and “prior authorization” means
24. the same as those terms are defined in § 27-18.9-2.
25. (17) The secretary shall convene, in consultation with the governor, an advisory working
26. group to assist in the review and analysis of potential impacts of any adopted federal actions related
27. to Medicaid programs. The working group shall develop options for administrative action or
28. general assembly consideration that may be needed to address any federal funding changes that
29. impact Rhode Island’s Medicaid programs.
30. (i) The advisory working group may include, but not be limited to, the secretary of health
31. and human services, director of management and budget, and designees from the following: state
32. agencies, businesses, healthcare, public sector unions, and advocates.
33. (ii) As soon as practicable after the enactment federal budget for fiscal year 2026, but no
34. later than October 31, 2025, the advisory working group shall forward a report to the governor,

speaker of the house, and president of the senate containing the findings, recommendations and
options for consideration to become compliant with federal changes prior to the governor’s budget
submission pursuant to § 35-3-7.
(18) The secretary shall implement, in coordination with the health insurance
commissioner, the Achieving Healthcare Efficiency through Accountable Design (AHEAD) Model
Grant Program and produce a report to the governor and the general assembly outlining the
program’s activities. The report, due no later than October 31, 2026, and annually thereafter by

8 October 31 for the duration of the state’s participation in the grant, should address, at minimum:

(i) a description of activities and funding uses during the grant year;
(ii) the legislative authority, including budgetary authority, required to implement changes
to the Rhode Island Medical Assistance program;
(ii) stakeholder interest and participation in the model; and
(iv) overall long-term value of implementing the alternative payment models required by
the AHEAD model.
SECTION 5. Chapter 42-72 of the General Laws entitled “Department of Children, Youth
and Families” is hereby amended by adding thereto the following section:
42-72-37. Family Care Community Partnerships.
(a) As used in this subsection, “family care community partnership” (FCCP) means a
specific, community-based prevention service that an agency or entity provides to children and
families through a Medicaid certification, department license, or contract with the department.
(b) There are hereby established five (5) FCCP catchment regions to serve residents of a
specific area within the state, as follows:
(1) West Urban Core: the cities of Providence and Cranston;
(2) East Urban Core: the cities of East Providence, Central Falls, and Pawtucket;
(3) East Bay: the towns of Barrington, Bristol, Jamestown, Little Compton, Middletown,
Portsmouth, Tiverton, and Warren, and the city of Newport;
(4) Washington and Kent Counties: the towns of Charlestown, Coventry, East Greenwich,
Exeter, Hopkinton, Narragansett, New Shoreham, North Kingstown, Richmond, South Kingstown,
West Greenwich, West Warwick, and Westerly, and the city of Warwick; and
(5) Northern Rhode Island: the towns of Burrillville, Cumberland, Foster, Glocester,
Johnston, Lincoln, North Providence, North Smithfield, Scituate, Smithfield, and the city of
Woonsocket.
(c) Exactly one FCCP shall be permitted to operate in each region set forth in subsection
(b) of this section.
1. SECTION 6. Rhode Island Medicaid Reform Act of 2008 Resolution.
2. WHEREAS, the General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode
3. Island Medicaid Reform Act of 2008”; and
4. WHEREAS, a legislative enactment is required pursuant to Rhode Island General Laws
5. section 42-12.4-1, et seq.; and
6. WHEREAS, Rhode Island General Laws section 42-7.2-5(3)(i) provides that the secretary
7. of the executive office of health and human services is responsible for the review and coordination
8. of any Medicaid section 1115 demonstration waiver requests and renewals as well as any initiatives
9. and proposals requiring amendments to the Medicaid state plan or category II or III changes as
10. described in the demonstration, “with potential to affect the scope, amount, or duration of publicly-
11. funded health care services, provider payments or reimbursements, or access to or the availability
12. of benefits and services provided by Rhode Island general and public laws”; and
13. WHEREAS, in pursuit of a more cost-effective consumer choice system of care that is
14. fiscally sound and sustainable, the secretary requests legislative approval of the following proposals
15. to amend the demonstration; and
16. WHEREAS, implementation of adjustments may require amendments to the Rhode
17. Island’s Medicaid state plan and/or section 1115 waiver under the terms and conditions of the
18. demonstration. Further, adoption of new or amended rules, regulations and procedures may also
19. be required:
20. (a) Inpatient and Outpatient Hospital Rate Increase Alignment with State Revenue Growth.
21. The executive office of health and human services will pursue and implement any state plan
22. amendments needed to limit rate increases for inpatient and outpatient hospital services in SFY
23. 2027 to the anticipated rate of growth of state tax revenue, 2.5 percent.
24. (b) Nursing Facility Rate Increase Alignment with State Revenue Growth. The executive
25. office of health and human services will pursue and implement any state plan amendments needed
26. to align rate increases for nursing facilities in SFY 2027 to the anticipated rate of growth of state
27. tax revenue, 2.5 percent.
28. (c) Federally Qualified Health Center Rate Increase Alignment with State Revenue
29. Growth. The secretary of the executive office of health and human services will pursue and
30. implement any amendments needed to the Principles of Reimbursement for Federally Qualified
31. Health Centers (FQHC) needed to align rate increases for FQHC services in SFY 2027 to the
32. anticipated rate of growth of state tax revenue, 2.5 percent.
33. (d) Substance Abuse Residential Services Rates. The secretary of the executive office of
34. health and human services will pursue and implement any state plan amendments needed to

eliminate annual rate increases for substance abuse residential services.
(e) Children’s Services Rate Setting. The secretary of the executive office of health and
human services is authorized to pursue and implement any waiver amendments, state plan
amendments, and/or changes to the applicable department’s rules, regulations, and procedures
required to implement reimbursement rates resulting from the Children's Services Rate Setting
project.
(f) Provider Reimbursement Rates. The secretary of the executive office of health and
human services is authorized to pursue and implement any waiver amendments, state plan
amendments, and/or changes to the applicable department’s rules, regulations, and procedures
required to implement updates to Medicaid provider reimbursement rates consisting of rate
increases limited to the lower amount of one half (1/2) of the increases recommended or one
hundred percent (100%) of the Medicare rates identified in the Social and Human Service Programs
Review Final Report produced by the office of the health insurance commissioner pursuant to
Rhode Island General Laws section 42-14.5-3(t)(2)(x), effective October 1, 2026.
(g) Glucagon-like Peptide-1 (GLP-1) Coverage. The secretary of the executive office of
health and human services is authorized to pursue and implement any waiver amendments, state
plan amendments, and/or changes to the applicable department’s rules, regulations, and procedures
required to remove coverage for GLP-1 medications, except if prescribed to treat type 2 diabetes.
(h) Federal Financing Opportunities. The executive office of health and human services
proposes that it shall review Medicaid requirements and opportunities under the U.S. Patient
Protection and Affordable Care Act of 2010 (PPACA) and various other recently enacted federal
laws and pursue any changes in the Rhode Island Medicaid program that promote, increase and
enhance service quality, access and cost-effectiveness that may require a Medicaid state plan
amendment or amendment under the terms and conditions of Rhode Island’s section 1115 waiver,
its successor, or any extension thereof. Any such actions by the executive office of health and
human services shall not have an adverse impact on beneficiaries or cause there to be an increase
in expenditures beyond the amount appropriated for state fiscal year 2027.
Now, therefore, be it:
RESOLVED, that the General Assembly hereby approves the above-referenced proposals;
and be it further;
RESOLVED, that the secretary of the executive office of health and human services is
authorized to pursue and implement any waiver amendments, state plan amendments, and/or
changes to the applicable department’s rules, regulations and procedures approved herein and as
authorized by chapter 12.4 of title 42; and be it further;
1. RESOLVED, that this Joint Resolution shall take effect on July 1, 2026.
2. SECTION 7. This article shall take effect upon passage, except section 6 which shall take
3. effect on July 1, 2026.

ARTICLE 9
RELATING TO LEASES
SECTION 1. This article consists of a Joint Resolution that is submitted pursuant to Rhode
Island General Laws § 37-6-2, authorizing various lease agreements for office space and operating
space.
SECTION 2. Rhode Island Department of State (148 West River Street, Providence).
WHEREAS, the Rhode Island Department of State currently occupies approximately
12,152 square feet at 148 West River Street in the City of Providence; and
WHEREAS, the Rhode Island Department of State currently holds a lease agreement, in
full force and effect, with EGMP 146-148 West River LLC for approximately 12,152 square feet
of office and customer service space located at 148 West River Street, in the City of Providence;
and
WHEREAS, the existing lease expires on July 31, 2026, and the Rhode Island Department
of State wishes to enter into a new lease agreement for a period of ten (10) years; and
WHEREAS, the State of Rhode Island, acting by and through the Department of State
attests to the fact that there are no clauses in the lease agreement with EGMP 146-148 West River
LLC that would interfere with the Department of State’s lease agreement or use of the facility; and
WHEREAS, the leased premises provide a critical location for the offices of the
Department of State from which the agency can fulfill its mission; and
WHEREAS, the annual fixed rent in the agreement in the current fiscal year, ending June

21 30, 2026 is $256,589.52; and

WHEREAS, the annual base rent of the agreement in year one is not to exceed $261,268.00
which will be followed by annual increases of 2.5% in years two (2) through ten (10), with year ten
(10) not to exceed $326,287.93; and
WHEREAS, the payment of the annual base rent will be made from funds available to the
Department of State for the payments of rental and lease costs based on annual appropriations made
by the General Assembly; and
WHEREAS, the State Properties Committee now respectfully requests the approval of the
Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement
between the Department of State and EGMP 146-148 West River LLC for leased space located at
148 West River Street, Providence; now therefore be it
RESOLVED, that this General Assembly of the State of Rhode Island hereby approves the
lease agreement, for a term not to exceed ten (10) years and an aggregate base rent not to exceed
$2,927,085.15; and it be further
1. RESOLVED, that this Joint Resolution shall take effect upon passage by the General
2. Assembly; and it be further
3. RESOLVED, that the Secretary of State is hereby authorized and directed to transmit duly
4. certified copies of this resolution to the Governor, the Secretary of State, the Director of
5. Administration, the State Budget Officer, and the Chair of the State Properties Committee.
6. SECTION 3. Rhode Island Department of Environmental Management, (235 Promenade
7. Street, Providence).
8. WHEREAS, the Rhode Island Department of Environmental Management currently
9. occupies 126,184 square feet at 235 Promenade Street in the City of Providence; and
10. WHEREAS, the Rhode Island Department of Environmental Management currently
11. holds a lease agreement in full force and effect, with Foundry Parcel Fifteen Associates, LLC for
12. 126,184 square feet of office and customer service space located at 235 Promenade Street, in the
13. City of Providence; and
14. WHEREAS, the existing lease expires on July 7, 2026, and the Rhode Island Department
15. of Environmental Management wishes to enter into a new lease agreement for a period of ten (10)
16. years; and
17. WHEREAS, the Department of Administration and Rhode Island Department of
18. Environmental Management received and reviewed proposals for office space that would meet the
19. Department of Environmental Management’s needs; and
20. WHEREAS, upon completing an evaluation of the submitted lease proposals, the Rhode
21. Island Department of Environmental Management wishes to enter into a ten-year lease agreement
22. with Foundry Parcel Fifteen Associates, LLC for 115,328 square feet of office space located at 235
23. Promenade Street in the city of Providence; and
24. WHEREAS, the State of Rhode Island, acting by and through the Rhode Island Department
25. of Environmental Management attests to the fact that there are no clauses in the lease agreement
26. with Foundry Parcel Fifteen Associates, LLC that would interfere with the Rhode Island
27. Department of Environmental Management’s lease agreement or use of the facility; and
28. WHEREAS, the leased premises provide a critical location for the offices of the Rhode
29. Island Department of Environmental Management from which the agency can fulfill its mission;
30. and
31. WHEREAS, the annual fixed rent in the agreement in the current fiscal year, ending June

32 30, 2026 is $2,586,772; and

WHEREAS, the annual fixed rent of the agreement in each of the first five (5) years of the
renewal term will not exceed $2,600,000 and shall not exceed $2,800,000 in each of the remaining

years of the renewal term (or in each of years six (6) through ten (10) of the renewal term); and
WHEREAS, the payment of the annual fixed rent will be made from funds available to the
Rhode Island Department of Environmental Management for the payments of rental and lease costs
based on annual appropriations made by the General Assembly; and
WHEREAS, the State Properties Committee now respectfully requests the approval of the
Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement
between the Rhode Island Department of Environmental Management and Foundry Parcel Fifteen
Associates, LLC for lease space located at 235 Promenade Street, Providence; now therefore be it
RESOLVED, that this General Assembly of the State of Rhode Island hereby approves the
lease agreement, for a term not to exceed ten (10) years and an aggregate fixed rent not to exceed
$27,000,000; and it be further
RESOLVED, that this Joint Resolution shall take effect upon passage by the General
Assembly; and it be further
RESOLVED, that the Secretary of State is hereby authorized and directed to transmit duly
certified copies of this resolution to the Governor, the Secretary of State, the Director of the Rhode
Island Department of Environmental Management, the Director of Administration, the State
Budget Officer, and the Chair of the State Properties Committee.
SECTION 4. State of Rhode Island Office of the Public Defender (160 Pine Street,
Providence).
WHEREAS, the Office of the Public Defender currently occupies approximately 19,777
square feet at 160 Pine Street in the City of Providence; and
WHEREAS, the Office of the Public Defender currently holds a lease agreement, in full
force and effect, with PK Lamb Properties, Inc. for approximately 19,777 square feet of office
space located at 160 Pine Street, in the City of Providence; and
WHEREAS, the existing lease expires on July 31, 2026, and the Office of the Public
Defender wishes to renew this lease for an additional five-year term; and
WHEREAS, the State of Rhode Island, acting by and through the Office of the Public
Defender attests to the fact that there are no clauses in the lease agreement with PK Lamb
Properties, Inc. that would interfere with the Office of the Public Defender’s lease agreement or
use of the facility; and
WHEREAS, the leased premises provide a critical location for the Office of the Public
Defender from which the agency can fulfill its mission; and
WHEREAS, the annual fixed rent in the agreement in the current fiscal year, ending June

34 30, 2026 is $393,166.76; and

WHEREAS, the annual fixed rent of the agreement in the five (5) years of the renewal term
will not exceed $435,093.96; and
WHEREAS, the payment of the annual fixed rent will be made from funds available to the
Office of the Public Defender for the payments of rental and lease costs based on annual
appropriations made by the General Assembly; and
WHEREAS, the State Properties Committee now respectfully requests the approval of the
Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement
between the Office of the Public Defender and PK Lamb Properties, Inc. for leased space located
at 160 Pine Street, Providence; now therefore be it
RESOLVED, that this General Assembly of the State of Rhode Island hereby approves the
lease agreement, for a term not to exceed five (5) years and an aggregate fixed rent not to exceed
$2,175,469.80; and it be further
RESOLVED, that this Joint Resolution shall take effect upon passage by the General
Assembly; and it be further
RESOLVED, that the Secretary of State is hereby authorized and directed to transmit duly
certified copies of this resolution to the Governor, the Secretary of State, the Public Defender, the
Director of Administration, the State Budget Officer, and the Chair of the State Properties
Committee.
SECTION 5. This article shall take effect upon passage.
1. ARTICLE 10
2. RELATING TO HEALTH AND HUMAN SERVICES
3. SECTION 1. Section 40.1-1-13 of the General Laws in Chapter 40.1-1 entitled
4. “Department of Behavioral Healthcare, Developmental Disabilities and Hospitals” is hereby
5. amended to read as follows:
6. 40.1-1-13. Powers and duties of the office.
7. Notwithstanding any provision of the Rhode Island general laws to the contrary, the
8. department of behavioral healthcare, developmental disabilities and hospitals shall have the
9. following powers and duties:
10. (1) To establish and promulgate the overall plans, policies, objectives, and priorities for
11. state substance abuse education, prevention, and treatment; provided, however, that the director
12. shall obtain and consider input from all interested state departments and agencies prior to the
13. promulgation of any such plans or policies;
14. (2) Evaluate and monitor all state grants and contracts to local substance abuse service
15. providers;
16. (3) Develop, provide for, and coordinate the implementation of a comprehensive state plan
17. for substance abuse education, prevention, and treatment;
18. (4) Ensure the collection, analysis, and dissemination of information for planning and
19. evaluation of substance abuse services;
20. (5) Provide support, guidance, and technical assistance to individuals, local governments,
21. community service providers, public and private organizations in their substance abuse education,
22. prevention, and treatment activities;
23. (6) Confer with all interested department directors to coordinate the administration of state
24. programs and policies that directly affect substance abuse treatment and prevention;
25. (7) Seek and receive funds from the federal government and private sources in order to
26. further the purposes of this chapter;
27. (8) To act in conjunction with the executive office of health and human services as the
28. state’s co-designated agency (42 U.S.C. § 300x-30(a)) for administering federal aid and for the
29. purposes of the calculation of the expenditures relative to the substance abuse block grant and
30. federal funding maintenance of effort. The department of behavioral healthcare, developmental
31. disabilities and hospitals, as the state’s substance abuse and mental health authority, will have the
32. sole responsibility for the planning, policy and implementation efforts as it relates to the
33. requirements set forth in pertinent substance abuse laws and regulations including 42 U.S.C. §
34. 300x-21 et seq.;
  1. (9) Propose, review, and/or approve, as appropriate, proposals, policies, or plans involving
  2. insurance and managed care systems for substance abuse services in Rhode Island;
  3. (10) To enter into, in compliance with the provisions of chapter 2 of title 37, contractual
  4. relationships and memoranda of agreement as necessary for the purposes of this chapter;
  5. (11) To license facilities and programs for the care and treatment of substance abusers and
  6. for the prevention of substance abuse, and provide the list of licensed chemical dependency
  7. professionals (LCDP) and licensed chemical dependency clinical supervisors (LCDCS) (licensed
  8. by the department of health pursuant to chapter 69 of title 5) for use by state agencies including,
  9. but not limited to, the adjudication office of the department of transportation, the district court and
  10. superior court and the division of probation and parole for referral of individuals requiring
  11. substance use disorder treatment;
  12. (12) To promulgate rules and regulations necessary to carry out the requirements of this
  13. chapter;
  14. (13) Perform other acts and exercise any other powers necessary or convenient to carry out
  15. the intent and purposes of this chapter;
  16. (14) To exercise the authority and responsibilities relating to education, prevention, and
  17. treatment of substance abuse, as contained in, but not limited to, the following chapters: chapters
  18. 1.10, 10.1, and 28.2 of title 23; chapters 21.2 and 21.3 of title 16; chapter 50.1 of title 42 [repealed];
  19. chapter 109 of title 42; chapter 69 of title 5; and § 35-4-18;
  20. (15) To establish a Medicare Part D restricted-receipt account in the hospitals and
  21. community rehabilitation services program and the Rhode Island state psychiatric hospital program
  22. to receive and expend Medicare Part D reimbursements from pharmacy benefit providers consistent
  23. with the purposes of this chapter;
  24. (16) To establish a RICLAS group home operations restricted-receipt account in the
  25. services for the developmentally disabled program to receive and expend rental income from
  26. RICLAS group clients for group home-related expenditures, including food, utilities, community
  27. activities, and the maintenance of group homes;
  28. (17) To establish a non-Medicaid, third-party payor restricted-receipt account in the
  29. hospitals and community rehabilitation services program to receive and expend reimbursement
  30. from non-Medicaid, third-party payors to fund hospital patient services that are not Medicaid
  31. eligible; and
  32. (18) To certify any and all recovery housing facilities directly, or through a contracted
  33. entity, as defined by department guidelines, which includes adherence to using National Alliance
  34. for Recovery Residences (NARR) standards. In accordance with a schedule to be determined by

the department, all referrals from state agencies or state-funded facilities shall be to certified
houses, and only certified recovery housing facilities shall be eligible to receive state funding to
deliver recovery housing services. As of January 1, 2027, all recovery housing facilities shall be
registered with the department and shall adhere to the NARR certification process.
(19) To establish, operate, and/or designate a RI 9-8-8 Suicide & Crisis Lifeline center or
centers to provide telephone, text and chat crisis intervention services and crisis care coordination
to individuals accessing the RI 9-8-8 Suicide & Crisis Lifeline.
SECTION 2. Title 40.1 of the General Laws entitled “Behavioral Healthcare,
Development Disabilities and Hospitals” is hereby amended by adding thereto the following
chapter:
CHAPTER 8.6
RHODE ISLAND 9-8-8 SUICIDE & CRISIS LIFELINE

13 40.1-8.6-1. Definitions.

As used in this chapter:
(1) “9-8-8 Suicide & Crisis Lifeline” or “lifeline" means the national network system
operated by the National Suicide Prevention Lifeline ("NSPL") or its successor entity, within
which the department-approved or department-operated RI 9-8-8 Suicide & Crisis Lifeline Center
participates.
(2) “Department” means the department of behavioral healthcare, developmental
disabilities and hospitals.
(3) “Director” means the director of the department of behavioral healthcare,
developmental disabilities and hospitals.
(4) "National Suicide Prevention Lifeline" ("NSPL") means the national network of local
crisis centers providing free and confidential emotional support to people in suicidal crisis or
emotional distress twenty-four (24) hours a day, seven (7) days a week. Membership as an NSPL
center requires nationally recognized certification which includes evidence-based training for all
staff and volunteers in the management of NSPL calls.
(5) "Rhode Island (RI) 9-8-8 state administrator” means the administrator designated by
the director of the department to manage the locally operated and funded center within the national
network of the 9-8-8 Suicide & Crisis Lifeline within Rhode Island.
(6) “Rhode Island (RI) 9-8-8 Suicide & Crisis Lifeline Center” or "lifeline center" means
a department-approved or department-operated center that participates in the National Suicide
Prevention Lifeline Network and responds to statewide or regional 9-8-8 contacts that is operated
by or under contract with the department.
1. 40.1-8.6-2. Behavioral health crisis services system established.
2. (a) The director is hereby authorized to establish, operate, promulgate regulations with
3. regard to, and/or designate a RI 9-8-8 Suicide & Crisis Lifeline center or centers to provide
4. telephone, text and chat crisis intervention services and crisis care coordination to individuals
5. accessing the RI 9-8-8 Suicide & Crisis Lifeline twenty-four (24) hours a day, seven (7) days a
6. week.
7. (b) The director shall have the authority to provide general oversight of the RI 9-8-8
8. Suicide & Crisis Lifeline Center(s) established by this chapter.
9. (c) The RI 9-8-8 Suicide & Crisis Lifeline center(s) shall have an active agreement with
10. the administrator of the National Suicide Prevention Lifeline ("NSPL") maintained by SAMHSA,
11. or any successor entity, for participation within the network.
12. (d) The designated RI 9-8-8 Suicide & Crisis Lifeline center(s) shall meet SAMHSA and
13. NSPL or any successor entity’s requirements and best practices guidelines for operational and
14. clinical standards.
15. (e) The designated RI 9-8-8 Suicide & Crisis Lifeline center(s) shall provide and report
16. data and participate in evaluations and related quality improvement activities as required by the 9-
17. 8-8 state administrator. The department shall provide the department of children, youth, and
18. families with data regarding utilization of RI 9-8-8 services by children, youth, and their families,
19. consistent with NSPL requirements and state and federal confidentiality and privacy laws and
20. regulations.
21. (f) The designated RI 9-8-8 Suicide & Crisis Lifeline center(s) shall make referrals,
22. consistent with guidance and policies established by the NSPL or any successor entity, to follow-
23. up services for individuals who access the RI 9-8-8 Suicide & Crisis Lifeline.
24. (g) The director shall consult with the director of the department of children, youth, and
25. families prior to promulgating rules and regulations specific to RI 9-8-8 services for children,
26. youth, and their families.
27. (h) Nothing in § 40.1-8.6-2, § 40.1-8.6-3, or § 40.1-8.6-4 shall be construed to restrict the
28. authority of the department of children, youth and family (DCYF) pursuant to chapters 72 and
29. 72.1 of title 42.
30. 40.1-8.6-3. Funding of the 988 Suicide & Crisis Lifeline.
31. (a) The director shall have the authority to expend any and all funds allocated to support
32. the operations of the RI 9-8-8 Suicide & Crisis Lifeline.
33. 40.1-8.6-4. Implementation.
34. (a) The director shall designate the RI 9-8-8 state administrator. The RI 9-8-8 state
  1. administrator shall be an employee of the department and shall serve at the pleasure of the director,
  2. or shall be a contractor who has a contract with the department and shall serve for the period
  3. designated in the contract and in accordance with the terms of such contract.
  4. (b) All state agencies and/or departments shall provide to the department any and all data
  5. and other information necessary for the department to comply with federal and/or state reporting
  6. requirements with respect to the establishment and/or operation of the RI 9-8-8 Suicide & Crisis
  7. Lifeline.
  8. SECTION 3. Sections 42-160-3 and 42-160-5 of the General Laws in Chapter 42-160
  9. entitled "Rhode Island Pay for Success Act" are hereby amended to read as follows:
  10. 42-160-3. Annual reporting.
  11. The executive office, in collaboration with the Rhode Island Coalition to End
  12. Homelessness or other qualified organization as determined by the executive office, shall provide
  13. yearly progress reports to the general assembly beginning no later than January 30, 2022, and
  14. annually thereafter until January 30, 2027 2028. These reports will include recommendations on a
  15. proposed structure for entering into pay for success contracts, for administering the program, and
  16. for any and all matters related thereto that the executive office deems necessary to administer future
  17. pay for success projects at the conclusion of the pilot program in 2026 2027. As a condition of this
  18. project, HUD requires that a third party conduct a transparent and rigorous evaluation of the
  19. intervention to determine whether the outcomes have indeed achieved success. The evaluation
  20. results will be reported yearly to the governor and general assembly.
  21. 42-160-5. Pilot program established.
  22. There is established a five six (6)-year (5) pay-for-success pilot program to be administered
  23. by the Rhode Island executive office of health and human services. The pilot will follow the
  24. proposal outlined in the 2016 pay-for-success grant proposal to HUD and 2017 feasibility study.
  25. The pay-for-success project will provide a person-centered housing and supportive services
  26. intervention (PSH) for one hundred twenty-five (125) persons in Rhode Island experiencing
  27. homelessness who are high utilizers of the healthcare and justice systems. The pilot program will
  28. leverage eight hundred seventy-five thousand dollars ($875,000) of HUD/DOJ grant funds.
  29. Contract agreements with the executive office of health and human services pursuant to this chapter
  30. shall not exceed one million five hundred thousand dollars ($1,500,000) per fiscal year or six
  31. million dollars ($6,000,000) in the aggregate over the five (5) six (6) years of the pilot program, as
  32. determined by the department; provided, no agreements shall be entered by the department after
  33. July 1, 2026 2027, without further authorization by the general assembly.
  34. SECTION 4. Section 42-166-2 of the General Laws in Chapter 42-166 entitled "The
    1. Ladders to Licensure Program" is hereby amended to read as follows:
    2. 42-166-2. Use of appropriated funds.
    3. Any appropriated funds shall be used to provide grants to three (3) or four (4) at least two
    4. (2) grantee partnerships, consisting of multiple private sector health and human services employer
    5. organizations and education grantee partnerships (with at least one focused on behavioral health
    6. and one focused on nursing). Employers will be required to contribute a twenty-five percent (25%)
    7. in-kind match and a ten percent (10%) cash match.
    8. SECTION 5. This act shall take effect upon passage.

ARTICLE 11
RELATING TO AFFORDABILITY
SECTION 1. Title 27 of the General Laws entitled “Insurance” is hereby amended by
adding thereto the following chapter:
CHAPTER 84
PHARMACY BENEFIT MANAGER TRANSPARENCY REPORTING AND STUDY
ACT
27-84-1. Short title.
This chapter shall be known and may be cited as the “Pharmacy Benefit Manager
Transparency Reporting and Study Act.”
27-84-2. Definitions.
As used in this chapter, the following terms shall mean:
(1) “Aggregate Retained Rebate Percentage” means the percentage of all rebates received
from a manufacturer or other entity to a Pharmacy Benefit Manager for prescription drug utilization
which is not passed on to the Pharmacy Benefit Manager’s health carrier clients. The percentage
shall be calculated for each health carrier for rebates in the prior calendar years as follows: a) the
sum total dollar amount of rebates received from all pharmaceutical manufacturers for all utilization
of covered persons of a health carrier that was not passed through to the health carrier b) divided
by the sum total dollar amount of all rebates received from all pharmaceutical manufacturers for
covered persons of a health carrier.
(2) “Health Benefit Plan” means a policy, contract, certificate or agreement offered or
issued by a health carrier to provide, deliver, arrange for, pay for or reimburse any of the costs of
healthcare services.
(3) “Health Carrier” means an entity subject to the insurance laws and regulations of this
State, or subject to the jurisdiction of the health insurance commissioner, that contracts or offers to
contract, or enters into an agreement to provide, deliver, arrange for, pay for, or reimburse any of
the cost of health care services, including a health insurance company, a health maintenance
organization, a hospital and health services corporation, or any other entity providing a plan of
health insurance, health benefits or health care services.
(4) “Pharmacy Benefit Manager” means a person, business, or other entity that, pursuant
to a contract or under an employment relationship with a health carrier, a self-insurance plan, or
other third-party payer, either directly or through an intermediary, manages the prescription drug
coverage provided by the health carrier, self-insurance plan, or other third-party payer including,
but not limited to, the processing and payment of claims for prescription drugs, the performance of

drug utilization review, the processing of drug prior authorization requests, the adjudication of
appeals or grievances related to prescription drug coverage contracting with network pharmacies,
and controlling the cost of covered prescription drugs.
(5) “Rebates” means all price concessions paid by a manufacturer to a Pharmacy Benefit
Manager or health carrier, including rebates, discounts, and other price concessions that are based
on actual or estimated utilization of a prescription drug. Rebates also include price concessions
based on the effectiveness of a drug as in a value-based or performance-based contract.
(6) “Spread Pricing” means any amount charged or claimed by a Pharmacy Benefit
Manager to a health carrier that is in excess of the amount the Pharmacy Benefit Manager paid to
the pharmacy that filled the prescription.
(7) “Trade Secrets” has the meaning found in § 6-41-1(4).
27-84-3. Pharmacy Benefit Manager Transparency.
(a) Beginning March 1, 2027, and annually thereafter, each Pharmacy Benefit Manager
shall submit a transparency report containing data from the prior calendar year to the health
insurance commissioner. The transparency report shall contain the following information:
(1) The aggregate amount of all rebates that the Pharmacy Benefit Manager received from
all pharmaceutical manufacturers for all health carrier clients and for each health carrier client;
(2) The aggregate administrative fees that the Pharmacy Benefit Manager received from
all manufacturers for all health carrier clients and for each health carrier client;
(3) The aggregate retained rebates that the Pharmacy Benefit Manager received from all
pharmaceutical manufacturers and did not pass through to health carriers;
(4) The aggregate retained rebate percentage as defined in section 27-84-2;
(5) The highest, lowest, and mean aggregate retained rebate percentage for all health
carrier clients and for each health carrier client; and
(6) A response to a set of standard questions developed by the health insurance
commissioner regarding business practices, including but not limited to, rebate pass through
practices, spread pricing, pharmacy network development, and utilization management.
(b) A Pharmacy Benefit Manager providing information under this section shall provide
complete information to the health insurance commissioner but may request that the health
insurance commissioner designate certain material as a trade secret with a factual and legal analysis
supporting such request. Disclosure, however, may be ordered by a court of this State for good
cause shown or made in a court filing.
(c) Within sixty (60) days of receipt of complete reports, the health insurance commissioner
shall publish the transparency report of each Pharmacy Benefit Manager on the agency’s website

in a form and manner that does not violate State trade secrets law.
(d) The health insurance commissioner may impose administrative penalties in accordance
with § 42-14-16 for violations of this section.
27-84-4. Pharmacy Benefit Manager Study.
(a) On or before October 1, 2027, the health insurance commissioner shall provide the
governor and the general assembly with an analysis of the reporting information furnished pursuant
to § 27-84-3. The report shall also include a review of the role of Pharmacy Benefit Managers in
the structure and cost of health insurance, a review of approaches to Pharmacy Benefit Manager
regulation in other states, and any recommended actions to improve the oversight of Pharmacy
Benefit Managers doing business in Rhode Island.
(b) The health insurance commissioner may contract with actuaries and other subject
matter experts to assist the commissioner in conducting the study required under this section. The
actuaries and other experts shall serve under the direction of the health insurance commissioner.
Health insurance companies doing business in this state, including, but not limited to, nonprofit
hospital service corporations and nonprofit medical service corporations established pursuant to
chapters 19 and 20 of title 27, and health maintenance organizations established pursuant to chapter
41 of title 27, shall bear the cost of these actuaries and subject matter experts according to a
schedule of their direct writing of health insurance in this state as determined by the health
insurance commissioner. The amount to be invoiced to and paid by the above-described health
insurance companies doing business in this state for the study conducted under this section shall
not exceed a total of one hundred seventy-five thousand dollars ($175,000).
27-84-5. Regulations.
The health insurance commissioner may promulgate rules and regulations as are necessary
to carry out and effectuate the provisions of this chapter.
SECTION 2. Sections 31-36-7 and 31-36-20 of the General Laws in Chapter 31-36 entitled
“Motor Fuel Tax” are hereby amended to read as follows:
31-36-7. Monthly report of distributors — Payment of tax.
(a) State requirements.
(1) Every distributor shall, on or before the twentieth (20th) day of each month, render a
report to the tax administrator, upon forms to be obtained from the tax administrator, of the amount
(number of gallons) of fuels purchased, sold, or used by the distributor within this state and the
amount of fuels sold by the distributor without this state from fuels within this state during the
preceding calendar month, and, if required by the tax administrator as to purchases, the name or
names of the person or persons from whom purchased and the date and amount of each purchase,

and as to sales, the name or names of the person or persons to whom sold and the amount of each
sale, and shall pay at the same time to the administrator tax at the rate of thirty-two cents ($0.32)
per gallon on all taxable gallons of fuel sold or used in this state for periods ending on or before

4 June 30, 2025.

(2) Every distributor shall, on or before the twentieth day of each month, render a report to
the tax administrator, upon forms to be obtained from the tax administrator, of the amount (number
of gallons) of fuels purchased, sold, or used by the distributor within this state and the amount of
fuels sold by the distributor without this state from fuels within this state during the preceding
calendar month, and, if required by the tax administrator as to purchases, the name or names of the
person or persons from whom purchased and the date and amount of each purchase, and as to sales,
the name or names of the person or persons to whom sold and the amount of each sale, and shall
pay at the same time to the administrator, tax at the rate of forty cents ($0.40) per gallon on all
taxable gallons of fuel sold or used in this state for periods beginning on or after July 1, 2025 and
ending on or before June 30, 2026.
(3) Every distributor shall, on or before the twentieth day of each month, render a report to
the tax administrator, upon forms to be obtained from the tax administrator, of the amount (number
of gallons) of fuels purchased, sold, or used by the distributor within this state and the amount of
fuels sold by the distributor without this state from fuels within this state during the preceding
calendar month, and, if required by the tax administrator as to purchases, the name or names of the
person or persons from whom purchased and the date and amount of each purchase, and as to sales,
the name or names of the person or persons to whom sold and the amount of each sale, and shall
pay at the same time to the administrator, tax at the rate of thirty-eight cents ($0.38) per gallon on
all taxable gallons of fuel sold or used in this state for periods beginning on or after July 1, 2026.
(b) Federal requirements. In the event the federal government requires a certain portion of
the gasoline tax to be dedicated for highway improvements, then the state controller is directed to
establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings
the state into federal compliance.
(1) Beginning July 1, 2015, and every other year thereafter, through June 30, 2025, the
gasoline tax shall be adjusted by the percentage of increase in the Consumer Price Index for all
Urban Consumers (CPI-U) as published by the United States Bureau of Labor Statistics determined
as of September 30 of the prior calendar year; said adjustment shall be rounded to the nearest one
cent ($.01) increment, provided that the total tax shall not be less than provided for in subsection
(a)(1).
(2) Beginning July 1, 2027, and every other year thereafter, the gasoline tax shall be
1. adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-
2. U) as published by the United States Bureau of Labor Statistics determined as of September 30 of
3. the two (2) prior calendar years; said adjustment shall be rounded to the nearest one cent ($0.01)
4. increment; provided that, the total tax shall not be less than provided for in subsection (a)(2)(3).
5. 31-36-20. Disposition of proceeds.
6. (a) Disposition of proceeds.
7. (1) Notwithstanding any other provision of law to the contrary, all moneys paid into the
8. general treasury under the provisions of this chapter or chapter 37 of this title, and title 46 shall be
9. applied to and held in a separate fund and be deposited in any depositories that may be selected by
10. the general treasurer to the credit of the fund, which fund shall be known as the Intermodal Surface
11. Transportation Fund; provided, that in fiscal year 2004 for the months of July through April six and
12. eighty-five hundredth cents ($0.0685) per gallon of the tax imposed and accruing for the liability
13. under the provisions of § 31-36-7, less refunds and credits, shall be transferred to the Rhode Island
14. public transit authority as provided under § 39-18-21. For the months of May and June in fiscal
15. year 2004, the allocation shall be five and five hundredth cents ($0.0505). Thereafter, until fiscal
16. year 2006, the allocation shall be six and twenty-five hundredth cents ($0.0625). For fiscal years
17. 2006 through FY 2008, the allocation shall be seven and twenty-five hundredth cents ($0.0725);
18. provided, that expenditures shall include the costs of a market survey of non-transit users and a
19. management study of the agency to include the feasibility of moving the authority into the
20. department of transportation, both to be conducted under the auspices of the state budget officer.
21. The state budget officer shall hire necessary consultants to perform the studies, and shall direct
22. payment by the authority. Both studies shall be transmitted by the budget officer to the 2006 session
23. of the general assembly, with comments from the authority. For fiscal year 2009, the allocation
24. shall be seven and seventy-five hundredth cents ($0.0775), of which one-half cent ($0.005) shall
25. be derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-
26. 11. For fiscal years 2010 through fiscal year 2025, the allocation shall be nine and seventy-five
27. hundredth cents ($0.0975), of which one-half cent ($0.005) shall be derived from the one cent
28. ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-11. For fiscal years 2026 and
29. thereafter, the allocation shall be eleven and seventy-five hundredths cents ($0.1175) of which one-
30. half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental protection
31. fee pursuant to § 46-12.9-11. One cent ($0.01) per gallon shall be transferred to the elderly/disabled
32. transportation program of the department of human services, and the remaining cents per gallon
33. shall be available for general revenue as determined by the following schedule:
34. (i) For the fiscal year 2000, three and one-fourth cents ($0.0325) shall be available for
  1. general revenue.
  2. (ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for
  3. general revenue.
  4. (iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general
  5. revenue.
  6. (iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for
  7. general revenue.
  8. (v) For the months of July through April in fiscal year 2004, one and four-tenths cents
  9. ($0.014) shall be available for general revenue. For the months of May through June in fiscal year
  10. 2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter,
  11. until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year 2006
  12. through fiscal year 2009 one cent ($0.01) shall be available for general revenue.
  13. (2) All deposits and transfers of funds made by the tax administrator under this section,
  14. including those to the Rhode Island public transit authority, the department of human services, the
  15. Rhode Island turnpike and bridge authority, and the general fund, shall be made monthly and
  16. credited and paid by the general treasurer to the designated fund in accordance with this section.
  17. (3) Commencing in fiscal year 2004, the director of the Rhode Island department of
  18. transportation is authorized to remit, on a monthly or less frequent basis as shall be determined by
  19. the director of the Rhode Island department of transportation, or the director’s designee, or at the
  20. election of the director of the Rhode Island department of transportation, with the approval of the
  21. director of the department of administration, to an indenture trustee, administrator, or other third-
  22. party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax imposed, in
  23. order to satisfy debt service payments on aggregate bonds issued pursuant to a joint resolution and
  24. enactment approving the financing of various department of transportation projects adopted during
  25. the 2003 session of the general assembly, and approved by the governor.
  26. (4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be transferred
  27. to the Rhode Island turnpike and bridge authority to be used for maintenance, operations, capital
  28. expenditures, and debt service on any of its projects as defined in chapter 12 of title 24 in lieu of a
  29. toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge authority is authorized to
  30. remit to an indenture trustee, administrator, or other third-party fiduciary any or all of the foregoing
  31. transfers in order to satisfy and/or secure its revenue bonds and notes and/or debt service payments
  32. thereon, including, but not limited to, the bonds and notes issued pursuant to the Joint Resolution
  33. set forth in Section 3 of Article 6 of Chapter 23 of the Public Laws of 2010. Notwithstanding any
  34. other provision of said joint resolution, the Rhode Island turnpike and bridge authority is expressly

authorized to issue bonds and notes previously authorized under said joint resolution for the
purpose of financing all expenses incurred by it for the formerly authorized tolling of the Sakonnet
River Bridge and the termination thereof.
(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund
shall be dedicated to the department of transportation, subject to annual appropriation by the general
assembly. The director of transportation shall submit to the general assembly, budget office, and
office of the governor annually an accounting of all amounts deposited in and credited to the fund
together with a budget for proposed expenditures for the succeeding fiscal year in compliance with
§§ 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized
and directed to
draw their orders upon the general treasurer for the payments of any sum or portion of the
sum that may be required from time to time upon receipt of properly authenticated vouchers.
(c) At any time the amount of the fund is insufficient to fund the expenditures of the
department of transportation, not to exceed the amount authorized by the general assembly, the
general treasurer is authorized, with the approval of the governor and the director of administration,
in anticipation of the receipts of monies enumerated in this section to advance sums to the fund, for
the purposes specified in this section, any funds of the state not specifically held for any particular
purpose. However, all the advances made to the fund shall be returned to the general fund
immediately upon the receipt by the fund of proceeds resulting from the receipt of monies to the
extent of the advances.
SECTION 3. Section 39-1-27.7 of the General Laws in Chapter 39-1 entitled "Public
Utilities Commission" is hereby amended to read as follows:
39-1-27.7. System reliability and least-cost procurement.
(a) Least-cost procurement shall comprise system reliability and energy efficiency and
conservation procurement, as provided for in this section, and supply procurement, as provided for
in § 39-1-27.8, as complementary but distinct activities that have as common purpose meeting
electrical and natural gas energy needs in Rhode Island, in a manner that is optimally cost-effective,
reliable, prudent, and environmentally responsible.
(b) The commission shall establish not later than June 1, 2008, standards for system
reliability and energy efficiency and conservation procurement that shall include standards and
guidelines for:
(1) System reliability procurement, including but not limited to:
(i) Procurement of energy supply from diverse sources, including, but not limited to,
renewable energy resources as defined in chapter 26 of this title;
1. (ii) Distributed generation, including, but not limited to, renewable energy resources and
2. thermally leading combined heat and power systems, that is reliable and is cost-effective, with
3. measurable, net system benefits;
4. (iii) Demand response, including, but not limited to, distributed generation, back-up
5. generation, and on-demand usage reduction, that shall be designed to facilitate electric customer
6. participation in regional demand response programs, including those administered by the
7. independent service operator of New England (“ISO-NE”), and/or are designed to provide local
8. system reliability benefits through load control or using on-site generating capability;
9. (iv) To effectuate the purposes of this division, the commission may establish standards
10. and/or rates (A) For qualifying distributed generation, demand response, and renewable energy
11. resources; (B) For net metering; (C) For back-up power and/or standby rates that reasonably
12. facilitate the development of distributed generation; and (D) For such other matters as the
13. commission may find necessary or appropriate.
14. (2) Least-cost procurement, which shall include procurement of energy efficiency and
15. energy conservation measures that are prudent and reliable and when such measures are lower cost
16. than acquisition of additional supply, including supply for periods of high demand.
17. (c) The standards and guidelines provided for by subsection (b) shall be subject to periodic
18. review and as appropriate amendment by the commission, which review will be conducted not less
19. frequently than every three (3) years after the adoption of the standards and guidelines.
20. (d) To implement the provisions of this section:
21. (1) The commissioner of the office of energy resources and the energy efficiency and
22. resources management council, either jointly or separately, shall provide the commission findings
23. and recommendations with regard to system reliability and energy efficiency and conservation
24. procurement on or before March 1, 2008, and triennially on or before March 1 thereafter through

25 March 1, 2028 March 1, 2038. The report shall be made public and be posted electronically on the

website of the office of energy resources.
(2) The commission shall issue standards not later than June 1, 2008, with regard to plans
for system reliability and energy efficiency and conservation procurement, which standards may
be amended or revised by the commission as necessary and/or appropriate.
(3) The energy efficiency and resources management council shall prepare by July 15,
2008, a reliability and efficiency procurement opportunity report that shall identify opportunities
to procure efficiency, distributed generation, demand response, and renewables and that shall be
submitted to the electrical distribution company, the commission, the office of energy resources,
and the joint committee on energy.
1. (4) (3) Each electrical and natural gas distribution company shall submit to the commission
2. on or before September 1, 2008, and triennially on or before September 1 thereafter through

3 September 1, 2028 2038, a plan for system reliability and energy efficiency and conservation

procurement. In developing the plan, the distribution company may seek the advice of consult with
the division, the commissioner and the council. The plan shall include measurable goals and target
percentages for each energy resource, pursuant to standards established by the commission,
including efficiency, distributed generation, demand response, combined heat and power, and
renewables. The plan shall be made public and be posted electronically on the website of the office
of energy resources, and shall also be submitted to the general assembly.
(5) (4) The commission shall issue an order approving all energy-efficiency measures that
are cost-effective and lower cost than acquisition of additional supply, with regard to the plan from
the electrical and natural gas distribution company, and reviewed and approved by the energy
efficiency and resources management council, and any related annual triennial plans, and shall
approve a fully reconciling funding mechanism to annually fund investments in all efficiency
measures that are cost-effective and lower cost than acquisition of additional supply, not greater
than sixty (60) days after it is filed with the commission.
(6)(i) Each electrical and natural gas distribution company shall provide a status report,
which shall be public, on the implementation of least-cost procurement on or before December 15,
2008, and on or before February 1, 2009, to the commission, the division, the commissioner of the
office of energy resources, and the energy efficiency and resources management council which

21 may provide the distribution company recommendations with regard to effective implementation

of least-cost procurement. The report shall include the targets for each energy resource included in
the order approving the plan and the achieved percentage for energy resource, including the
achieved percentages for efficiency, distributed generation, demand response, combined heat and
power, and renewables, as well as the current funding allocations for each eligible energy resource
and the businesses and vendors in Rhode Island participating in the programs. The report shall be
posted electronically on the website of the office of energy resources.
(5)(ii) Beginning on November 1, 2012, or before, each electric distribution company shall
support the installation and investment in clean and efficient combined heat and power installations
at commercial, institutional, municipal, and industrial facilities. This support shall be documented
annually triennially in the electric distribution company’s energy-efficiency program plans. In
order to effectuate this provision, the energy efficiency and resource management council shall
seek input from the public, the gas and electric distribution company, the commerce corporation,
and commercial and industrial users, and make recommendations regarding services to support the

development of combined heat and power installations in the electric distribution company’s annual
and triennial energy-efficiency program plans.
(iii) The energy-efficiency annual triennial plan shall include, but not be limited to, a plan
for identifying and recruiting qualified combined heat and power projects, incentive levels, contract
terms and guidelines, and achievable megawatt targets for investments in combined heat and power
systems. In the development of the plan, the energy efficiency and resource management council
and the electric distribution company shall factor into the combined heat and power plan and
program, the following criteria: (A) Economic development benefits in Rhode Island, including
direct and indirect job creation and retention from investments in combined heat and power
systems; (B) Energy and cost savings for customers; (C) Energy supply costs; (D) Greenhouse gas
emissions standards and air quality benefits; and (E) System reliability benefits.
(iv iii) The energy efficiency and resource management council shall conduct at least one
public review meeting annually triennially, to discuss and review the combined heat and power
program, with at least seven (7) business days’ notice, prior to the electric and gas distribution
utility submitting the plan to the commission. The commission shall evaluate the submitted
combined heat and power program as part of the annual triennial energy-efficiency plan. The
commission shall issue an order approving the energy-efficiency plan and programs within sixty
(60) days of the filing.
(e) If the commission shall determine that the implementation of system reliability and
energy efficiency and conservation procurement has caused, or is likely to cause, under or over-
recovery of overhead and fixed costs of the company implementing the procurement, the
commission may establish a mandatory rate-adjustment clause for the company so affected in order
to provide for full recovery of reasonable and prudent overhead and fixed costs.
(f) The commission shall conduct a contested case proceeding to establish a performance-
based incentive plan that allows for additional compensation for each electric distribution company
and each company providing gas to end-users and/or retail customers based on the level of its
success in mitigating the cost and variability of electric and gas services through procurement
portfolios the sharing of net benefits based on a set of prioritized benefit categories that maximizes
electric and gas ratepayer savings.
(g) Any cumulative direct bill charge to fund the triennial program for the 2027 through
2029 electric and gas energy efficiency plan shall not exceed seventy-five million dollars
($75,000,000) in each year of the plan. In the years following the adoption of the 2027–2029
triennial plan, the Commission may adjust the direct bill charge amounts approved in such plan;
provided, however, that any such adjustment shall not exceed the seasonally-adjusted percentage

change for the third year of the immediately preceding triennial plan for the energy expenditure
category in the Consumer Price Index for All Urban Consumers (CPI-U) as published by the United
States Bureau of Labor Statistics, over the applicable three-year planning period.
(g)(1) The office of energy resources shall conduct a study and analysis of the electric and
gas distribution company’s state energy efficiency programs that will examine implemented
program and planned conservation measures and review and confirm the claimed energy savings.
In carrying out this study, the office shall utilize a representative sample of different customer
classes and measures that have and/or will be participating in the state energy efficiency programs.
At a minimum, the study performed by the office of energy resources shall include the following
in its scope of work:
(i) Independently review and summarize the electric and gas distribution company process
for incorporating results from completed evaluation studies into ongoing energy efficiency program
reporting and implementation.
(ii) Conduct an independent review of gas and electricity efficiency programs, which may
include billing analysis techniques. The scope and subjects of this analysis will be decided by the
working group with input and advice from an independent consultant. The analysis will be
conducted by a qualified independent consultant using industry accepted methods.
(iii) Review the data-collection practices, including metering equipment used; sampling
frequency; sample sizes; and data validation procedures, and the methods for data analysis
employed, as deemed appropriate by the independent evaluator.
(iv) Study results and recommendations will be presented to the public utilities commission
and the energy efficiency and resource management council.
(2) The office of energy resources shall consult with the working group in development of
the request for proposals (RFP), and during the course of the study, including the preliminary study
results. The working group shall be comprised of one representative from each of the following
groups chosen by the office of energy resources:
(i) Large commercial and industrial energy users;
(ii) Small business energy users;
(iii) Residential energy users;
(iv) Municipal and state energy users;
(v) Low-income energy users;
(vi) Electric and gas distribution company; and
(vii) Energy efficiency and resource management council.
(3) The office of energy resources, in consultation with the electric and gas distribution
1. company and representatives referenced in subsection (g)(2), shall be authorized to hire an energy
2. consulting company or firm to carry out the energy efficiency verification study. The costs
3. associated with this study, including, but not limited to, those associated with the consultant or firm
4. contract and reasonable administrative costs incurred by the office in the execution of subsection
5. (g) of this section, shall be recoverable through the system benefit charge subject to commission
6. approval. Funding shall be transferred from the electric and gas distribution utility to the office of
7. energy resources upon request by the office.
8. (4) The office of energy resources shall submit this report on or before October 30, 2019,
9. to the governor, the president of the senate, and the speaker of the house. The office and its selected
10. energy consulting company or firm shall host two (2) public presentations on the preliminary and
11. final results of the study.
12. SECTION 4. Chapter 39-2 of the General Laws entitled “Duties of Utilities and Carriers”
13. is hereby amended by adding thereto the following section:
14. 39-2-29. In-state transmission owner required to participate in the regional
15. independent system operator.
16. On and after the effective date of this section, no electric distribution company, as defined
17. in § 39-1-2, shall own, operate, or control a transmission facility, as defined in § 39-1-2, located in
18. the state unless such company joins or is a member of ISO New England, Inc. or its successor
19. organization as approved by the federal energy regulatory commission.
20. SECTION 5. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of
21. Utilities and Carriers" is hereby amended to read as follows:
22. 39-2-1.2. Utility base rate — Advertising, demand-side management, and renewables.
23. (a) In addition to costs prohibited in § 39-1-27.4(b), no public utility distributing or
24. providing heat, electricity, or water to or for the public shall include as part of its base rate any
25. expenses for advertising, either direct or indirect, that promotes the use of its product or service, or
26. is designed to promote the public image of the industry. No public utility may furnish support of
27. any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and
28. include the expense as part of its base rate. Nothing contained in this section shall be deemed as
29. prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or
30. educational in nature, that is designed to promote public safety conservation of the public utility’s
31. product or service. The public utilities commission shall promulgate such rules and regulations as
32. are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect,
33. and to otherwise effectuate the provisions of this section.
34. (b) Effective as of January 1, 2008, and for a period of twenty (20) thirty (30) years
  1. thereafter, each electric distribution company shall include a charge per kilowatt-hour delivered to
  2. fund demand-side management programs. The 0.3 mills per kilowatt-hour delivered to fund
  3. renewable energy programs shall remain in effect until December 31, 2028 2031. The electric
  4. distribution company shall establish and, after July 1, 2007, maintain, two (2) separate accounts,
  5. one for demand-side management programs (the “demand-side account”), which shall be funded
  6. by the electric demand-side charge and administered and implemented by the distribution company,
  7. subject to the regulatory reviewing authority of the commission, and one for renewable energy
  8. programs, which shall be administered by the Rhode Island commerce corporation pursuant to §
  9. 42-64-13.2 and shall be held and disbursed by the distribution company as directed by the Rhode
  10. Island commerce corporation for the purposes of developing, promoting, and supporting renewable
  11. energy programs.
  12. During the time periods established in this subsection, the commission may, in its
  13. discretion, after notice and public hearing, increase the sums for demand-side management and
  14. renewable resources. In addition, the commission shall, after notice and public hearing, determine
  15. the appropriate charge for these programs. The office of energy resources, and/or the administrator
  16. of the renewable energy programs, may seek to secure for the state an equitable and reasonable
  17. portion of renewable energy credits or certificates created by private projects funded through those
  18. programs. As used in this section, “renewable energy resources” shall mean: (1) Power generation
  19. technologies, as defined in § 39-26-5, “eligible renewable energy resources,” including off-grid
  20. and on-grid generating technologies located in Rhode Island, as a priority; (2) Research and
  21. development activities in Rhode Island pertaining to eligible renewable energy resources and to
  22. other renewable energy technologies for electrical generation; or (3) Projects and activities directly
  23. related to implementing eligible renewable energy resources projects in Rhode Island.
  24. Technologies for converting solar energy for space heating or generating domestic hot water may
  25. also be funded through the renewable energy programs. Fuel cells may be considered an energy
  26. efficiency technology to be included in demand-side management programs. Special rates for low-
  27. income customers in effect as of August 7, 1996, shall be continued, and the costs of all of these
  28. discounts shall be included in the distribution rates charged to all other customers. Nothing in this
  29. section shall be construed as prohibiting an electric distribution company from offering any special
  30. rates or programs for low-income customers which are not in effect as of August 7, 1996, subject
  31. to the approval by the commission.
  32. (1) The renewable energy investment programs shall be administered pursuant to rules
  33. established by the Rhode Island commerce corporation. Said rules shall provide transparent criteria
  34. to rank qualified renewable energy projects, giving consideration to:
    1. (i) The feasibility of project completion;
    2. (ii) The anticipated amount of renewable energy the project will produce;
    3. (iii) The potential of the project to mitigate energy costs over the life of the project; and
    4. (iv) The estimated cost per kilowatt-hour (KWh) of the energy produced from the project.
    5. (c) [Deleted by P.L. 2012, ch. 241, art. 4, § 14.]
    6. (d) The chief executive officer of the commerce corporation is authorized and may enter
    7. into a contract with a contractor for the cost-effective administration of the renewable energy
    8. programs funded by this section. A competitive bid and contract award for administration of the
    9. renewable energy programs may occur every three (3) years and shall include, as a condition, that
    10. after July 1, 2008, the account for the renewable energy programs shall be maintained and
    11. administered by the commerce corporation as provided for in subsection (b) of this section.
    12. (e) Effective January 1, 2007, and for a period of twenty-one (21) thirty-one (31) years
    13. thereafter, each gas distribution company shall include, with the approval of the commission, a
    14. charge per deca therm delivered to fund demand-side management programs (the “gas demand-
    15. side charge”), including, but not limited to, programs for cost-effective energy efficiency, energy
    16. conservation, combined heat and power systems, and weatherization services for low-income
    17. households.
    18. (f) Each gas company shall establish a separate account for demand-side management
    19. programs (the “gas demand-side account”) that shall be funded by the gas demand-side charge and
    20. administered and implemented by the distribution company, subject to the regulatory reviewing
    21. authority of the commission. The commission may establish administrative mechanisms and
    22. procedures that are similar to those for electric demand-side management programs administered
    23. under the jurisdiction of the commission and that are designed to achieve cost-effectiveness and
    24. high, life-time savings of efficiency measures supported by the program.
    25. (g) The commission may, if reasonable and feasible, except from this demand-side
    26. management charge:
    27. (1) Gas used for distribution generation; and
    28. (2) Gas used for the manufacturing processes, where the customer has established a self-
    29. directed program to invest in and achieve best-effective energy efficiency in accordance with a plan
    30. approved by the commission and subject to periodic review and approval by the commission, which
    31. plan shall require annual reporting of the amount invested and the return on investments in terms
    32. of gas savings.
    33. (h) The commission may provide for the coordinated and/or integrated administration of
    34. electric and gas demand-side management programs in order to enhance the effectiveness of the

programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the
recommendation of the office of energy resources, be through one or more third-party entities
designated by the commission pursuant to a competitive selection process.
(i) Effective January 1, 2007, the commission shall allocate, from demand-side
management gas and electric funds authorized pursuant to this section, an amount not to exceed
three percent (3%) of such funds on an annual basis for the retention of expert consultants, and
reasonable administration costs of the energy efficiency and resource management council
associated with planning, management, and evaluation of energy-efficiency programs, renewable
energy programs, system reliability, least-cost procurement, and with regulatory proceedings,
contested cases, and other actions pertaining to the purposes, powers, and duties of the council,
which allocation may by mutual agreement, be used in coordination with the office of energy
resources to support such activities.
(j) Effective January 1, 2016, the commission shall annually allocate from the
administrative funding amount allocated in subsection (i) from the demand-side management
program as described in subsection (i) as follows: (1) for the energy efficiency and resource
management council, no more than forty percent (40%) for the purposes identified in subsection (i)
and (2) sixty percent (60%) of three percent (3%) from the demand-side management gas and
electric funds annually to the office of energy resources for activities associated with planning,
management, and evaluation of energy-efficiency programs, renewable energy programs, system
reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other
actions pertaining to the purposes, powers, and duties of the office of energy resources and shall
have exclusive authority to direct the use of the office administrative and programmatic funds.
(k) On July 1 April 15, of each year, the office and the council shall submit to the governor,
the president of the senate, and the speaker of the house of representatives, separate financial and
performance reports regarding the demand-side management programs, including the specific level
of funds that were contributed by the residential, municipal, and commercial and industrial sectors
to the overall programs; the businesses, vendors, and institutions that received funding from
demand-side management gas and electric funds used for the purposes in this section; and the
businesses, vendors, and institutions that received the administrative funds for the purposes in
subsections (i) and (j). These reports shall be posted electronically on the websites of the office of
energy resources and the energy efficiency and resources management council.
(l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each
electric distribution company, except for the Pascoag Utility District and Block Island Power
Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side charge

collections to the Rhode Island infrastructure bank.
(m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each
gas distribution company shall remit two percent (2%) of the amount of the 2014 gas demand-side
charge collections to the Rhode Island infrastructure bank.
(n) (l) Effective January 1, 20227, the commission shall allocate, from demand-side
management gas and electric funds authorized pursuant to this section, five million dollars
($5,000,000) two million five hundred thousand dollars ($2,500,000) of such funds on an annual
basis to the Rhode Island infrastructure bank. Gas and electric demand-side funds transferred to the
Rhode Island infrastructure bank pursuant to this section shall be eligible to be used in any energy
efficiency, renewable energy, clean transportation, clean heating, energy storage, or demand-side
management project financing program administered by the Rhode Island infrastructure bank
notwithstanding any other restrictions on the use of such collections set forth in this chapter. The
infrastructure bank shall report annually to the commission within ninety (90) days of the end of
each calendar year how collections transferred under this section were utilized.
(o) (m) The Rhode Island office of energy resources, in coordination with the energy
efficiency and resource management council, and following consultation with the public utilities
commission and division of public utilities and carriers, shall issue a request for proposals for the
cost-effective administration and implementation of statewide energy efficiency programs funded
by this section no later than September 30, 2023. The draft request for proposals shall be reviewed
through at least one technical session at the public utilities commission prior to issuance. Public
utilities commission approval shall not be required. The Rhode Island office of energy resources,
in coordination with the energy efficiency and resource management council, shall evaluate
proposals and determine whether energy efficiency administration and implementation by the
electric and gas distribution company or a third party is likely to achieve the most net benefits for
electric and gas customers in Rhode Island. After January 1, 2025, the office of energy resources
may, periodically, and at its discretion, issue additional requests for proposals for the administration
and implementation of statewide energy efficiency programs funded through this chapter of an
electric distribution company as defined in § 39-1-2(a)(12) or gas distribution company included
as a public utility in § 39-1-2(a)(20) that has greater than one hundred thousand (100,000)
customers.
(1) Nothing in this chapter shall prohibit the electric and/or gas distribution company from
submitting a proposal to administer and implement the state energy efficiency programs.
(2) If the office of energy resources, in coordination with the energy efficiency and resource
management council, determines that the use of a third-party administrator is likely to achieve the

most net benefits for electric and gas customers in Rhode Island, it shall file its recommendation
with the public utilities commission, which shall docket and rule on the matter pursuant to its
general statutory authorization.
(3) If the commission determines that the recommended third-party administrator is in the
interest of Rhode Island utility customers, it shall provide for the full cost recovery for the third-
party administrator consistent with the terms of the approved contract, and which shall reflect the
overall annual triennial budget approved by the commission. The third-party administrator shall be
subject to all the requirements set forth for the electric and gas distribution company per § 39-1-
27.7.
(4) If the commission determines that a third-party administrator will administer the state
energy efficiency programs on or after June 1, 2024, the commission shall direct the gas and electric
distribution company to annually collect and transfer the gas and electric energy efficiency funds
to the third-party administrator for each year of the annual triennial state energy efficiency program
beginning with the program year and thereafter for the remaining program years. The gas and
electric distribution company shall annually transfer the annual triennial administrative funds to the
office of energy resources and energy efficiency and resource management council.
(5) If a third-party administrator implements the annual triennial energy efficiency
programs then they it shall be required to develop and design the annual triennial state energy
efficiency program with the office of energy resources and energy efficiency and resource
management council, including a vote by the energy efficiency and resource management council
prior to the third-party administrator filing the annual triennial program plan to with the public
utilities commission for review and a decision.
(6) The third-party administrator shall file the annual triennial state energy efficiency
program plan to with the public utilities commission for review and approval no later than

25 September June 30, 2024, and annually triennially thereafter on such date.

(7) The third-party administrator shall provide all information requested by the office of
energy resources, energy efficiency and resource management council, division of public utilities
and carriers, and the public utilities commission, including responses to data requests, which are
necessary for the agencies to carry out their respective oversight roles, and shall be accountable to
the same standards as the utility with administering and implementing energy efficiency, system
reliability, and least-cost procurement standards and goals in accordance with § 39-1-27.7 and this
section.
(8) If the office does not recommend advancement of a third-party administrator, the
electric and gas distribution company shall continue to administer statewide energy efficiency

programs.
SECTION 6. Section 39-2.2-2 of the General Laws in Chapter 39-2.2 entitled "Rhode
Island Utility Fair Share Roadway Repair Act" is hereby amended to read as follows:
39-2.2-2. Road repair by public utility or utility facility.
(a) Any public utility as defined by § 39-1-2 or any utility facility as defined by chapter 8.1
of title 24 that shall alter, excavate, disrupt, or disturb a roadway shall be responsible for complete
repaving and repair of the roadway from curbline to curbline or as required in accordance with the
state or municipal utility permit requirements.
(b) Any public utility as defined by § 39-1-2 or any utility facility as defined by chapter
8.1 of title 24 shall recover all costs required of this chapter in accordance with generally accepted
accounting principles.
SECTION 7. Chapter 39-26 entitled “Renewable Energy Standard” is hereby amended by
adding thereto the following section:
39-26-5.1. Zero-emission resources.
(a) Zero-emission resources are:
(1) Nuclear energy resources, meaning electricity generated by a nuclear fission or nuclear
fusion facility that is licensed by the United States Nuclear Regulatory Commission or its successor,
and that produces no direct emissions of greenhouse gases or criteria air pollutants at the point of
generation.
(2) Large-scale hydroelectric facilities, meaning hydroelectric generation units that are not
“small hydro facilities” as defined in § 39-26-2, that generate electricity through the conversion of
the energy of flowing or falling water and that produce no direct emissions of greenhouse gases or
criteria air pollutants at the point of generation.
(b) For the purposes of the regulations promulgated under this chapter, eligible zero-
emission energy resources are generation units in the NEPOOL control area using zero-emission
energy resources as defined in this section.
(c) A generation unit located in an adjacent control area outside of the NEPOOL may
qualify as an eligible zero-emission energy resource, but the associated generation attributes shall
be applied to any zero-emission standard established under this chapter only to the extent that the
energy produced by the generation unit is actually delivered into NEPOOL for consumption by
New England customers. The delivery of the energy from the generation unit into NEPOOL must
be demonstrated by:
(1) A unit-specific bilateral contract for the sale and delivery of such energy into NEPOOL;
and
1. (2) Confirmation from ISO-New England that the zero-emission energy was actually
2. settled in the NEPOOL system; and
3. (3) Confirmation through the North American Electric Reliability Corporation tagging
4. system, or its successor, that the import of the energy into NEPOOL actually occurred; or
5. (4) Any such other requirements as the commission deems appropriate.
6. (d) NE-GIS certificates associated with energy production from off-grid generation and
7. customer-sited generation facilities certified by the commission as eligible zero-emission energy
8. resources may also be used to demonstrate compliance with any zero-emission standard.
9. SECTION 8. Sections 39-26-2, 39-26-4, 39-26-6, and 39-26-7 of the General Laws in
10. Chapter 39-2 entitled "Renewable Energy Standard" are hereby amended to read as follows:
11. 39-26-2. Definitions.
12. When used in this chapter:
13. (1) “Alternative compliance payment” means a payment to the renewable energy
14. development fund of fifty dollars ($50.00) per megawatt-hour of renewable energy obligation, in
15. 2003 dollars, adjusted annually up or down by the consumer price index, which may be made in
16. lieu of standard means of compliance with this statute.
17. (1) “Alternative compliance payment” means a payment made in lieu standard means of
18. compliance with this statute, as follows:
19. (i) For new renewable energy and zero-emission resources, an alternative compliance
20. payment of forty dollars ($40.00) per megawatt-hour of renewable energy obligation.
21. (ii) For existing renewable energy and zero-emission resources, an alternative compliance
22. payment of eleven dollars ($11.00) per megawatt-hour of renewable energy obligation.
23. (iii) All such payments shall be deposited into the renewable energy development fund and
24. distributed in accordance with § 39-26-7(10).
25. (2) “Commission” means the Rhode Island public utilities commission.
26. (3) “Compliance year” means a calendar year beginning January 1 and ending December
27. 31, for which an obligated entity must demonstrate that it has met the requirements of this statute.
28. (4) “Customer-sited generation facility” means a generation unit that is interconnected on
29. the end-use customer’s side of the retail electricity meter in such a manner that it displaces all or
30. part of the metered consumption of the end-use customer.
31. (5) “Electrical energy product” means an electrical energy offering, including, but not
32. limited to, last-resort and standard-offer service, that can be distinguished by its generation
33. attributes or other characteristics, and that is offered for sale by an obligated entity to end-use
34. customers.
  1. (6) “Eligible biomass fuel” means fuel sources including brush, stumps, lumber ends and
  2. trimmings, wood pallets, bark, wood chips, shavings, slash, and other clean wood that is not mixed
  3. with other solid wastes; agricultural waste, food, and vegetative material; energy crops; landfill
  4. methane; biogas; or neat biodiesel and other neat liquid fuels that are derived from such fuel
  5. sources.
  6. (7) “Eligible renewable energy and zero-emission resource” means resources as defined in

7 § 39-26-5 and § 39-26-5.1.

(8) “End-use customer” means a person or entity in Rhode Island that purchases electrical
energy at retail from an obligated entity.
(9) “Existing renewable energy and zero-emission resources” means generation units using
eligible renewable energy and zero-emission resources and first going into commercial operation
before December 31, 1997.
(10) “Generation attributes” means the nonprice characteristics of the electrical energy
output of a generation unit including, but not limited to, the unit’s fuel type, emissions, vintage,
and policy eligibility.
(11) “Generation unit” means a facility that converts a fuel or an energy resource into
electrical energy.
(12) “High-heat medical waste processing facility” means a facility that:
(i) Generates electricity from the combustion, gasification, or pyrolysis of regulated
medical waste;
(ii) Generates electricity from the combustion of fuel derived from the gasification or
pyrolysis of regulated medical waste; or
(iii) Disposes of, processes, or treats regulated medical waste through combustion,
gasification, pyrolysis, or any process that exposes waste to temperatures above four hundred
degrees Fahrenheit (400ºF).
(13) “NE-GIS” means the generation information system operated by NEPOOL, its
designee or successor entity, that includes a generation information database and certificate system,
and that accounts for the generation attributes of electrical energy consumed within NEPOOL.
(14) “NE-GIS certificate” means an electronic record produced by the NE-GIS that
identifies the relevant generation attributes of each megawatt-hour accounted for in the NE-GIS.
(15) “NEPOOL” means the New England Power Pool or its successor.
(16) “New renewable energy and zero-emission resources” means generation units using
eligible renewable energy and zero-emission resources and first going into commercial operation
after December 31, 1997; or the incremental output of generation units using eligible renewable

energy and zero-emission resources that have demonstrably increased generation in excess of ten
percent (10%) using eligible renewable energy and zero-emission resources through capital
investments made after December 31, 1997; but in no case involve any new impoundment or
diversion of water with an average salinity of twenty (20) parts per thousand or less.
(17) “Obligated entity” means a person or entity who or that sells electrical energy to end-
use customers in Rhode Island, including, but not limited to: nonregulated power producers and
electric utility distribution companies, as defined in § 39-1-2, supplying standard-offer service, last-
resort service, or any successor service to end-use customers, including Narragansett Electric, but
not to include Block Island Power Company as described in § 39-26-7 or Pascoag Utility District.
(18) “Off-grid generation facility” means a generation unit that is not connected to a utility
transmission or distribution system.
(19) “Renewable energy and zero-emission resource” means any one or more of the
renewable energy and zero-emission resources described in § 39-26-5(a) and § 39-26-5.1.
(20) “Reserved certificate” means a NE-GIS certificate sold independent of a transaction
involving electrical energy, pursuant to Rule 3.4 or a successor rule of the operating rules of the
NE-GIS.
(21) “Reserved certificate account” means a specially designated account established by
an obligated entity, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS,
for transfer and retirement of reserved certificates from the NE-GIS.
(22) “Self-generator” means an end-use customer in Rhode Island that displaces all or part
of its retail electricity consumption, as metered by the distribution utility to which it interconnects,
through the use of a customer-sited generation facility, and the ownership of any such facility shall
not be considered an obligated entity as a result of any such ownership arrangement.
(23) “Small hydro facility” means a facility employing one or more hydroelectric turbine
generators and with an aggregate capacity not exceeding thirty megawatts (30 MW). For purposes
of this definition, “facility” shall be defined in a manner consistent with Title 18 of the Code of
Federal Regulations, section 292.204; provided, however, that the size of the facility is limited to
thirty megawatts (30 MW), rather than eighty megawatts (80 MW).
39-26-4. Renewable energy standard.
(a) Starting in compliance year 2007, all obligated entities shall obtain at least three percent
(3%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric
line losses, from eligible renewable energy and zero-emission resources, escalating, according to
the following schedule:
(1) At least three percent (3%) of retail electricity sales in compliance year 2007;

(2) An additional one-half of one percent (0.5%) of retail electricity sales in each of the
following compliance years 2008, 2009, 2010;
(3) An additional one percent (1%) of retail electricity sales in each of the following
compliance years 2011, 2012, 2013, 2014, provided that the commission has determined the
adequacy, or potential adequacy, of renewable and zero-emission energy supplies to meet these
percentage requirements;
(4) An additional one and one-half percent (1.5%) of retail electricity sales in each of the

8 following compliance years 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022;

9 (5) [Deleted by P.L. 2016, ch. 144, § 1 and P.L. 2016, ch. 155, § 1.]

(6) An additional four percent (4%) of retail electricity sales in 2023;
(7) An additional five percent (5%) of retail electricity sales in 2024;
(8) An additional six percent (6%) of retail electricity sales in 2025;
(9) An additional seven percent (7%) of retail electricity sales in 2026 and 2027;
(10) An additional seven and one-half percent (7.5%) of retail electricity sales in 2028;
(11) An additional eight percent (8%) of retail electricity sales in 2029;
(12) An additional eight and one-half percent (8.5%) of retail electricity sales in 2030;
(13) An additional nine percent (9%) of retail electricity sales in 2031; and
(14) An additional nine and one-half percent (9.5%) of retail electricity sales in 2032 and
2033 to achieve the goal that one hundred percent (100%) of Rhode Island’s electricity demand is
from renewable energy by 2033 and each year thereafter.
(10) Starting in compliance year 2027, all obligated entities shall obtain at least thirty-five
percent (35%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for
electric line losses, from eligible renewable energy and zero-emission resources, escalating,
according to the following schedule:
(11) An additional one percent (1%) of retail electricity sales in each of compliance years

26 2028, 2029, 2030, and 2031;

27 (12) An additional two percent (2%) of retail electricity sales in each of compliance years

28 2032, 2033, 2034, 2035, and 2036;

29 (13) An additional three percent (3%) of retail electricity sales in each of compliance years

30 2037, 2038, 2039, 2040, 2041, 2042, and 2043;

31 (13) An additional four percent (4%) of retail electricity sales in each of compliance years

32 2044, 2045, 2046, 2047, and 2048;

(14) An additional five percent (5%) of retail electricity sales in each of compliance years
2049 and 2050 to achieve one hundred percent (100%) of Rhode Island’s electricity demand is

from renewable energy and zero-emission resources by 2050 and each year thereafter.
(b) For each obligated entity and in each compliance year, the amount of retail electricity
sales used to meet obligations under this statute that are derived from existing renewable energy
and zero-emission resources shall not exceed two percent (2%) twenty-five percent (25%) of total
retail electricity sales.
(c) The minimum renewable energy percentages set forth in subsection (a) shall be met for
each electrical energy product offered to end-use customers, in a manner that ensures that the
amount of renewable energy of end-use customers voluntarily purchasing renewable energy is not
counted toward meeting such percentages. Notwithstanding the foregoing, municipalities engaged
in aggregation pursuant to § 39-3-1.2 may include in their aggregation plan terms that would allow
voluntary renewable energy products to be counted toward meeting such percentages. In 2024, the
commission, with input from the office of energy resources, division of public utilities and carriers,
obligated entities, other market participants, and the public, shall assess the impact of allowing
voluntary renewable energy purchases to be counted toward meeting the annual percentages. The
commission shall submit a report of its findings and recommendations to the governor, speaker of
the house, and senate president no later than September 1, 2024.
(d) To the extent consistent with the requirements of this chapter, compliance with the
renewable energy standard may be demonstrated through procurement of NE-GIS certificates
relating to generating units certified by the commission as using eligible renewable energy and
zero-emission sources, as evidenced by reports issued by the NE-GIS administrator. Procurement
of NE-GIS certificates from off-grid and customer-sited generation facilities, verified by the
commission as eligible renewable energy and zero-emission resources, may also be used to
demonstrate compliance. With the exception of contracts for generation supply entered into prior
to 2002, initial title to NE-GIS certificates from off-grid and customer-sited generation facilities
and from all other eligible renewable energy and zero-emission resources, shall accrue to the owner
of such a generation facility, unless such title has been explicitly deemed transferred pursuant to
contract or regulatory order.
(e) In lieu of providing NE-GIS certificates pursuant to subsection (d) of this section, an
obligated entity may also discharge all or any portion of its compliance obligations by making an
alternative compliance payment to the renewable energy development fund established pursuant to
§ 39-26-7.
(f) Retail electricity sales pursuant to a nonregulated power producer’s supply contract that
was executed prior to July 1, 2022, shall be required to obtain an additional one and one-half percent
(1.5%) of retail electricity sales each year and are exempted from the requirements of subsections

(a)(6) through (a)(14) of this section until the end date of the term of the nonregulated power
producer’s supply contract.
39-26-6. Duties of the commission.
(a) The commission shall:
(1) Develop and adopt regulations on or before December 31, 2005, for implementing a
renewable energy standard, which regulations shall include, but be limited to, provisions for:
(i) Verifying the eligibility of renewable energy and zero-emission generators and the
production of energy from such generators, including requirements to notify the commission in the
event of a change in a generator’s eligibility status;
(ii) Standards for contracts and procurement plans for renewable energy and zero-emission
resources to achieve the purposes of this chapter;
(iii) Flexibility mechanisms for the purposes of easing compliance burdens; facilitating
bringing new renewable and zero-emission resources on-line; and avoiding and/or mitigating
conflicts with state-level source disclosure requirements and green marketing claims throughout
the region; which flexibility mechanisms shall allow obligated entities to: (A) Demonstrate
compliance over a compliance year; and (B) Bank excess compliance for two (2) three (3)
subsequent compliance years, capped at thirty percent (30%) of the current year’s obligation; and
(iv) Annual compliance filings to be made by all obligated entities within one month after
NE-GIS reports are available for the fourth (4th) quarter of each calendar year. All electric-utility-
distribution companies shall cooperate with the commission in providing data necessary to assess
the magnitude of obligation and verify the compliance of all obligated entities.
(2) Authorize rate recovery by electric-utility-distribution companies of all prudent
incremental costs arising from the implementation of this chapter, including, without limitation:
the purchase of NE-GIS certificates, including certificates from zero-emission resources; the
payment of alternative compliance payments; required payments to support the NE-GIS;
assessments made pursuant to § 39-26-7(c); and the incremental costs of complying with energy
source disclosure requirements.
(3) Certify eligible renewable energy and zero-emission resources by issuing statements of
qualification within ninety (90) days of application. The commission shall provide prospective
reviews for applicants seeking to determine whether a facility would be eligible.

31 (4) [Deleted by P.L. 2022, ch. 218, § 1 and P.L. 2022, ch. 226, § 1.]

(5) Establish sanctions for those obligated entities that, after investigation, have been found
to fail to reasonably comply with the commission’s regulations. No sanction or penalty shall relieve
or diminish an obligated entity from liability for fulfilling any shortfall in its compliance obligation;

provided, however, that no sanction shall be imposed if compliance is achieved through alternative
compliance payments. The commission may suspend or revoke the certification of generation units,
certified in accordance with subsection (a)(3) of this section, that are found to provide false
information or that fail to notify the commission in the event of a change in eligibility status or
otherwise comply with its rules. Financial penalties resulting from sanctions from obligated entities
shall not be recoverable in rates.
(6) Report, by February 15, 2006, and by February 15 each year thereafter, to the governor,
the speaker of the house, and the president of the senate on the status of the implementation of the
renewable energy standards in Rhode Island and other states, and which report shall include in
2009, and each year thereafter, the level of use of renewable energy certificates by eligible
renewable energy and zero-emission resources, and the portion of renewable energy standards met
through alternative compliance payments, and the amount of rate increases authorized pursuant to
subsection (a)(2) of this section.
(b) Consistent with the public policy objective of developing renewable and zero-emission
generation as an option in Rhode Island, and subject to the review and approval of the commission,
the electric distribution company is authorized to propose and implement pilot programs to own
and operate no more than fifteen megawatts (15 MW) of renewable- and zero-emission generation
demonstration projects in Rhode Island and may include the costs and benefits in rates to
distribution customers. At least two (2) demonstration projects shall include renewable generation
installed at, or in the vicinity of nonprofit, affordable-housing projects where energy savings
benefits are provided to reduce electric bills of the customers at the nonprofit, affordable-housing
projects. Any renewable- and zero-emission generation proposals shall be subject to the review and
approval of the commission. The commission shall annually make an adjustment to the minimum
amounts required under the renewable energy standard under this chapter in an amount equal to the
kilowatt hours generated by such units owned by the electric distribution company. The electric
and gas distribution company shall also be authorized to propose and implement smart-metering
and smart-grid demonstration projects in Rhode Island, subject to the review and approval of the
commission, in order to determine the effectiveness of such new technologies for reducing and
managing energy consumption, and may include the costs of such demonstration projects in
distribution rates to electric customers to the extent the project pertains to electricity usage and in
distribution rates to gas customers to the extent the project pertains to gas usage.
39-26-7. Renewable energy development fund.
(a) There is hereby authorized and created within the Rhode Island commerce corporation
a renewable energy development fund for the purpose of increasing the supply of NE-GIS

certificates available for compliance in future years by obligated entities with renewable energy
standard requirements, as established in this chapter. The fund shall be located at the Rhode Island
commerce corporation. The Rhode Island commerce corporation shall administer the fund and
adopt plans and guidelines for the management and use of the fund in coordination with the office
of energy resources and the Rhode Island infrastructure bank.
(b) The Rhode Island commerce corporation shall enter into agreements with obligated
entities to accept alternative compliance payments, consistent with rules of the commission and the
purposes set forth in this section; and alternative compliance payments received pursuant to this
section shall be trust funds to be held and applied solely for the purposes set forth in this section.
(c) The uses of the fund shall include but not be limited to:
(1) Stimulating investment in renewable energy development by entering into agreements,
including multiyear agreements, for renewable energy certificates;
(2) Establishing and maintaining a residential renewable energy program using eligible
technologies in accordance with § 39-26-5;
(3) Providing technical and financial assistance to municipalities for interconnection and
feasibility studies, and/or the installation of renewable energy projects;
(4) Implementing and supporting commercial and residential property assessed clean-
energy projects;
(5) Clean transportation, including electric vehicles and charging infrastructure stations;
(6) Energy storage projects;
(5) (7) Issuing assurances and/or guarantees to support the acquisition of renewable energy
certificates and/or the development of new renewable energy sources for Rhode Island;
(6) (8) Establishing escrows, reserves, and/or acquiring insurance for the obligations of the
fund;
(7) (9) Paying administrative costs of the fund incurred by the Rhode Island commerce
corporation, the Rhode Island infrastructure bank, and the office of energy resources, not to exceed
ten percent (10%) of the income of the fund, including, but not limited to, alternative compliance
payments. All funds transferred from the Rhode Island commerce corporation to support the office
of energy resources’ administrative costs shall be deposited as restricted receipts.
(d) All applications received for the use of the fund shall be reviewed by the Rhode Island
commerce corporation in consultation with the office of energy resources and the Rhode Island
infrastructure bank.
(e) NE-GIS certificates acquired through the fund may be conveyed to obligated entities or
may be credited against the renewable energy standard for the year of the certificate provided that

the commission assesses the cost of the certificates to the obligated entity, or entities, benefiting
from the credit against the renewable energy standard, which assessment shall be reduced by
previously made alternative compliance payments and shall be paid to the fund.
(10) Effective January 1, 2027, fifty percent (50%) of all alternative compliance payment
revenues shall be transferred to the electric distribution company, with oversight and approval of
the office of energy resources, for the purpose of providing direct rate relief, to be applied as bill
credits to all ratepayer accounts. The electric distribution company shall file a proposed direct rate
relief plan with the Public Utilities Commission for review and approval no later than sixty (60)
days after receipt of such funds.
(11) All expenditures, contracts, grants, and other programmatic activities undertaken
using monies pursuant to this section shall be subject to the prior review and approval of the office
of energy resources.
SECTION 9. Section 39-26.1-4 of the General Laws in Chapter 39-26.1 entitled "Long-
Term Contracting Standard for Renewable Energy" is hereby repealed.
39-26.1-4. Financial remuneration and incentives.
In order to achieve the purposes of this chapter, electric distribution companies shall be
entitled to financial remuneration and incentives for long-term contracts for newly developed
renewable energy resources, which are over and above the base rate revenue requirement
established in its cost of service for distribution ratemaking. Such remuneration and incentives shall
compensate the electric distribution company for accepting the financial obligation of the long-
term contracts. The financial remuneration and incentives described in this section shall apply only
to long-term contracts for newly developed renewable energy resources. For long-term contracts
approved pursuant to this chapter before January 1, 2022, the financial remuneration and incentives
shall be in the form of annual compensation, equal to two and three quarters percent (2.75%) of the
actual annual payments made under the contracts for those projects that are commercially
operating, unless determined otherwise by the commission at the time of approval. For long-term
contracts approved pursuant to this chapter on or after January 1, 2022, including contracts above
the minimum long-term contract capacity, the financial remuneration and incentives shall be in the
form of annual compensation up to one percent (1.0%) of the actual annual payments made under
the contracts through December 31, 2026, for those projects that are commercially operating. For
all long-term contracts approved pursuant to this chapter on or after January 1, 2027, financial
remuneration and incentives shall not be applied, unless otherwise granted by the commission. For
any calendar year in which the electric distribution company’s actual return on equity exceeds the
return on equity allowed by the commission in the electric distribution company’s last general rate

case, the commission shall have the authority to adjust any or all remuneration paid to the electric
distribution company pursuant to this section in order to assure that such remuneration does not
result in or contribute toward the electric distribution company earning above its allowed return for
such calendar year.
SECTION 10. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net
Metering” is hereby amended to read as follows:
39-26.4-2. Definitions.
Terms not defined in this section herein shall have the same meaning as contained in
chapter 26 of this title. When used in this chapter:
(1) “Community remote net-metering system” means a facility generating electricity using
an eligible net-metering resource that allocates net-metering credits to a minimum of one account
for a system associated with low- or moderate-income housing eligible credit recipients, or three
(3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of
the credits produced by the system are allocated to one eligible credit recipient, and provided further
at least fifty percent (50%) of the credits produced by the system are allocated to the remaining
eligible credit recipients in an amount not to exceed that which is produced annually by twenty-
five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer
credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of
the eligible credit recipient accounts measured by the three-year (3) average annual consumption
of energy over the previous three (3) years. A projected annual consumption of energy may be used
until the actual three-year (3) average annual consumption of energy over the previous three (3)
years at the eligible credit recipient accounts becomes available for use in determining eligibility
of the generating system. The community remote net-metering system may be owned by the same
entity that is the customer of record on the net-metered account or may be owned by a third party.
(2) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling
two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25)
yards from mapped roads, with eligibility questions to be resolved by the director of the department
of environmental management. Such determination shall constitute a contested case as defined in
§ 42-35-1.
(3) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not
include Block Island Power Company or Pascoag Utility District, each of whom shall be required
to offer net metering to customers through a tariff approved by the public utilities commission after
a public hearing. Any tariff or policy on file with the public utilities commission on the date of
passage of this chapter shall remain in effect until the commission approves a new tariff.
1. (4) “Eligible credit recipient” means one of the following eligible recipients in the electric
2. distribution company’s service territory whose electric service account or accounts may receive
3. net-metering credits from a community remote net-metering system. Eligible credit recipients
4. include the following definitions:
5. (i) Residential accounts in good standing.
6. (ii) “Low- or moderate-income housing eligible credit recipient” means an electric service
7. account or accounts in good standing associated with any housing development or developments
8. owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative,
9. or private developer that receives assistance under any federal, state, or municipal government
10. program to assist the construction or rehabilitation of housing affordable to low- or moderate-
11. income households, as defined in the applicable federal or state statute, or local ordinance,
12. encumbered by a deed restriction or other covenant recorded in the land records of the municipality
13. in which the housing is located, that:
14. (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households
15. with a gross, annual income that does not exceed eighty percent (80%) of the area median income
16. as defined annually by the United States Department of Housing and Urban Development (HUD);
17. (B) Restricts the monthly rent, including a utility allowance, that may be charged to
18. residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of
19. a household earning eighty percent (80%) of the area median income as defined annually by HUD;
20. (C) Has an original term of not less than thirty (30) years from initial occupancy.
21. Electric service account or accounts in good standing associated with housing
22. developments that are under common ownership or control may be considered a single low- or
23. moderate-income housing eligible credit recipient for purposes of this section. The value of the
24. credits shall be used to provide benefits to tenants.
25. (iii) “Educational institutions” means public and private schools at the primary, secondary,
26. and postsecondary levels.
27. (iv) “Commercial or industrial customers” means any nonresidential customer of the
28. electric distribution company.
29. (5) “Eligible net-metering resource” means eligible renewable energy resource, as defined
30. in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding
31. all other listed eligible biomass fuels.
32. (6) “Eligible net-metering system” means a facility generating electricity using an eligible
33. net-metering resource that, for any system with a nameplate capacity in excess of twenty-five
34. kilowatts (25 KW), is reasonably designed and sized to annually produce electricity in an amount

that is equal to, or less than, the renewable self-generator’s usage at the eligible net-metering system
site measured by the three-year (3) average annual consumption of energy over the previous three
(3) years at the electric distribution account(s) located at the eligible net-metering system site. A
projected annual consumption of energy may be used until the actual three-year (3) average annual
consumption of energy over the previous three (3) years at the electric distribution account(s)
located at the eligible net-metering system site becomes available for use in determining eligibility
of the generating system. For any system with a nameplate capacity equal to or less than twenty-
five kilowatts (25 KW), eligibility shall not be restricted based on prior consumption. The eligible
net-metering system may be owned by the same entity that is the customer of record on the net-
metered accounts or may be owned by a third party that is not the customer of record at the eligible
net-metering system site and which may offer a third-party, net-metering financing arrangement or
net-metering financing arrangement, as applicable. Notwithstanding any other provisions of this
chapter, any eligible net-metering resource: (i) Owned by a public entity, educational institution,
hospital, nonprofit, or multi-municipal collaborative; or (ii) Owned and operated by a renewable-
generation developer on behalf of a public entity, educational institution, hospital, nonprofit, or
multi-municipal collaborative through a net-metering financing arrangement shall be treated as an
eligible net-metering system and all accounts designated by the public entity, educational
institution, hospital, nonprofit, or multi-municipal collaborative for net metering shall be treated as
accounts eligible for net metering within an eligible net-metering system site; or (iii) Owned and
operated by a renewable-generation developer on behalf of one or more commercial or industrial
customer(s) through net-metering financing arrangement(s) shall be treated as an eligible net-
metering system within an eligible net-metering system site. Notwithstanding any other provision
to the contrary, effective July 1, 2060, an eligible net-metering system means a facility generating
electricity using an eligible net-metering resource that is interconnected behind the same meter as
the net-metering customer’s load.
(7) “Eligible net-metering system site” means the site where the eligible net-metering
system or community remote net-metering system is located or is part of the same campus or
complex of sites contiguous to one another and the site where the eligible net-metering system or
community remote net-metering system is located or a farm on which the eligible net-metering
system or community remote net-metering system is located. Except for an eligible net-metering
system owned by or operated on behalf of a public entity, educational institution, hospital,
nonprofit, or multi-municipal collaborative or for a commercial or industrial customer through a
net-metering financing arrangement, the purpose of this definition is to reasonably assure that
energy generated by the eligible net-metering system is consumed by net-metered electric service

account(s) that are actually located in the same geographical location as the eligible net-metering
system. All energy generated from any eligible net-metering system is, and will be considered,
consumed at the meter where the renewable energy resource is interconnected for valuation
purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public
entity, educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a
commercial or industrial customer through a net-metering financing arrangement, or except for a
community remote net-metering system, all of the net-metered accounts at the eligible net-metering
system site must be the accounts of the same customer of record and customers are not permitted
to enter into agreements or arrangements to change the name on accounts for the purpose of
artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid
this restriction. However, a property owner may change the nature of the metered service at the
accounts at the site to be master metered in the owner’s name, or become the customer of record
for each of the accounts, provided that the owner becoming the customer of record actually owns
the property at which the account is located. As long as the net-metered accounts meet the
requirements set forth in this definition, there is no limit on the number of accounts that may be net
metered within the eligible net-metering system site.
(8) “Excess renewable net-metering credit” means a credit that applies to an eligible net-
metering system or community remote net-metering system for that portion of the production of
electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five
percent (125%), except for any system with a nameplate capacity equal to or less than twenty-five
kilowatts (25 KW) for which excess renewable net-metering credit applies to all production of
electrical energy beyond one hundred percent (100%) of the renewable self-generator’s own
consumption at the eligible net-metering system site or the sum of the usage of the eligible credit
recipient accounts associated with the community remote net-metering system during the
applicable billing period.
For electrical energy produced greater than one hundred percent (100%) of the renewable
self-generator’s own electricity consumption at the eligible net-metering system site or the sum of
the usage of the eligible credit recipient accounts associated with the community remote net-
metering system during the applicable billing period, excess renewable net-metering credits shall
be equal to the wholesale electricity rate, which is hereby declared to be the ISO-New England
energy clearing price. When applying the ISO-New England energy clearing price to calculate the
value of excess renewable net-metering credits, the electric distribution company, subject to
commission approval and subject to amendment from time to time, may use an annual average,
monthly average, or other time increment and may use Rhode Island zone pricing or other

applicable locational pricing. The commission shall have the authority to make determinations as
to the applicability of this credit to specific generation facilities to the extent there is any uncertainty
or disagreement.
(9) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings
associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are
owned by the same entity operating the farm or persons associated with operating the farm; and (ii)
The buildings are on the same farmland as the project on either a tract of land contiguous with, or
reasonably proximate to, such farmland or across a public way from such farmland.
(10) “Grid access fee” means a monthly fee, determined by the commission, that an electric
distribution company must use to offset distribution costs associated with net metering systems that
otherwise would be paid by ratepayers. The grid access fee shall be assessed to all eligible net-
metering systems and or community remote net-metering systems with a nameplate capacity equal
to or greater than one (1) megawatt of capacity. For systems with a nameplate capacity of less than
one (1) megawatt, the fee shall be zero. The commission shall determine the grid access fee
applicable to systems described herein and shall establish a process by which the electric
distribution company must apply the grid access fee to offset distribution costs. Beginning January
1, 2027, the initial monthly grid access fee established by the commission must be: a) for a system
with a nameplate capacity of one (1) megawatt or more and less than three (3) megawatts, $1.40
multiplied by the nameplate capacity of the system in kilowatts; b) for a system with a nameplate
capacity of three (3) megawatts or more and less than five (5) megawatts, $3.00 multiplied by the
nameplate capacity of the system in kilowatts; and c) for systems with a nameplate capacity of five
(5) megawatts or more, $4.49 multiplied by the nameplate capacity of the system in kilowatts. The
commission shall periodically review the initial grid access fee to account for increases in
transmission and distribution rates.
(10) (11) “Hospital” means and shall be defined and established as set forth in chapter 17
of title 23.
(11) (12) “Multi-municipal collaborative” means a group of towns and/or cities that enter
into an agreement for the purpose of co-owning a renewable-generation facility or entering into a
financing arrangement pursuant to subsection (15).
(12) (13) “Municipality” means any Rhode Island town or city, including any agency or
instrumentality thereof, with the powers set forth in title 45.
(13) (14) “Net metering” means using electrical energy generated by an eligible net-
metering system for the purpose of self-supplying electrical energy and power at the eligible net-
metering system site, or with respect to a community remote net-metering system, for the purpose

of generating net-metering credits to be applied to the electric bills of the eligible credit recipients
associated with the community net-metering system. The amount so generated will thereby offset
consumption at the eligible net-metering system site through the netting process established in this
chapter, or with respect to a community remote net-metering system, the amounts generated in
excess of that amount will result in credits being applied to the eligible credit-recipient accounts
associated with the community remote net-metering system.
(14) (15) “Net-metering customer” means a customer of the electric distribution company
receiving and being billed for distribution service whose distribution account(s) are being net
metered.
(15) (16) “Net-metering financing arrangement” means arrangements entered into by a
public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or a
commercial or industrial customer with a private entity to facilitate the financing and operation of
a net-metering resource, in which the private entity owns and operates an eligible net-metering
resource on behalf of a public entity, educational institution, hospital, nonprofit, multi-municipal
collaborative, or commercial or industrial customer, where: (i) The eligible net-metering resource
is located on property owned or controlled by the public entity, educational institution, hospital,
municipality, multi-municipal collaborative, or commercial or industrial customer as applicable;
and (ii) The production from the eligible net-metering resource and primary compensation paid by
the public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or
commercial or industrial customer to the private entity for such production is directly tied to the
consumption of electricity occurring at the designated net-metered accounts.
(16) (17) “Nonprofit” means a nonprofit corporation as defined and established through
chapter 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26
U.S.C. § 501(d).
(17) (18) “Person” means an individual, firm, corporation, association, partnership, farm,
town or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island
or any department of the state government, governmental agency, or public instrumentality of the
state.
(18) (19) “Preferred site” means a location for a renewable energy system that has had prior
development, including, but not limited to: landfills, gravel pits and quarries, highway and major
road median strips, brownfields, superfund sites, parking lots or sites that are designated
appropriate for carports, and all rooftops including, but not limited to, residential, commercial,
industrial, and municipal buildings.
(19) (20) “Project” means a distinct installation of an eligible net-metering system or a
1. community remote net-metering system. An installation will be considered distinct if it is installed
2. in a different location, or at a different time, or involves a different type of renewable energy.
3. Subject to the safe-harbor provisions in § 39-26.4-3(a)(1), new and distinct projects cannot be
4. located on adjoining parcels of land within core forests, except for preferred sites.
5. (20) (21) “Public entity” means the federal government, the state of Rhode Island,
6. municipalities, wastewater treatment facilities, public transit agencies, or any water distributing
7. plant or system employed for the distribution of water to the consuming public within this state
8. including the water supply board of the city of Providence.
9. (21) (22) “Public entity net-metering system” means a system generating renewable energy
10. at a property owned or controlled by the public entity that is participating in a net-metering
11. financing arrangement where the public entity has designated accounts in its name to receive net-
12. metering credits.
13. (22) (23) “Renewable net-metering credit” means a credit that applies to an eligible net-
14. metering system or a community remote net-metering system up to one hundred percent (100%) of
15. either the renewable self-generator’s usage at the eligible net-metering system site or the sum of
16. the usage of the eligible credit-recipient accounts associated with the community remote net-
17. metering system over the applicable billing period. This credit shall be equal to the total kilowatt
18. hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the
19. sum of the eligible credit-recipient account usage during the billing period multiplied by the sum
20. of the distribution company’s:
21. (i) Last resort service kilowatt-hour charge for the rate class applicable to the net-metering
22. customer, except that for remote public entity and multi-municipality collaborative net-metering
23. systems that submit an application for an interconnection study on or after July 1, 2017, and
24. community remote net-metering systems, the last resort service kilowatt-hour charge shall be net
25. of the renewable energy standard charge or credit;
26. (ii) Distribution kilowatt-hour charge;
27. (iii) Transmission kilowatt-hour charge; and
28. (iv) Transition kilowatt-hour charge.
29. For projects after April 15, 2023, subject to the allowable two hundred seventy-five
30. megawatts alternating current (275 MWac), under § 39-26.4-3(a)(1)(vi), the credit shall be reduced
31. by twenty percent (20%).
32. For all eligible net-metering systems with a nameplate capacity equal to or greater than one
33. (1) megawatt, and all community remote net-metering systems with a nameplate capacity equal to
34. or greater than one (1) megawatt, the net metering credit shall be calculated under § 39-26.4-

2(23)(i)-(iv), based on the charges in effect on July 1, 2026.
Notwithstanding the foregoing, except for systems that have requested an interconnection
study for which payment has been received by the distribution company, or if an interconnection
study is not required, a completed and paid interconnection application, by December 31, 2018, the
renewable net-metering credit for all remote public entity and multi-municipal collaborative net-
metering systems shall not include the distribution kilowatt-hour charge be the wholesale rate as
defined in subsection (8) commencing on January 1, 2060 2045.
(23) (24) “Renewable self-generator” means an electric distribution service customer of
record for the eligible net-metering system or community remote net-metering system at the eligible
net-metering system site which system is primarily designed to produce electrical energy for
consumption by that same customer at its distribution service account(s), and/or, with respect to
community remote net-metering systems, electrical energy which generates net-metering credits to
be applied to offset the eligible credit-recipient account usage.
(24) (25) “Third party” means and includes any person or entity, other than the renewable
self-generator, who or that owns or operates the eligible net-metering system or community remote
net-metering system on the eligible net-metering system site for the benefit of the renewable self-
generator.
(25) (26) “Third-party, net-metering financing arrangement” means the financing of
eligible net-metering systems or community remote net-metering systems through lease
arrangements or power/credit purchase agreements between a third party and renewable self-
generator, except for those entities under a public entity net-metering financing arrangement. A
third party engaged in providing financing arrangements related to such net-metering systems with
a public or private entity is not a public utility as defined in § 39-1-2.
SECTION 11. Section 39-31-11 of the General Laws in Chapter 39-31entitled "Affordable
Clean Energy Security Act” is hereby repealed.
39-31-11. Financial remuneration and incentives.
In order to achieve the purposes of this chapter, electric distribution companies shall be
entitled to financial remuneration and incentives for long-term contracts for newly developed
renewable energy resources, which are over and above the base rate revenue requirement
established in its cost of service for distribution ratemaking. Such remuneration and incentives shall
compensate the electric distribution company for accepting the financial obligation of the long-
term contracts. For long-term contracts approved pursuant to this chapter on or after January 1,
2022, the financial remuneration and incentives shall be in the form of annual compensation up to
one percent (1.0%) of the actual annual payments made under the contracts through December 31,

2026, for those projects that are commercially operating. For long-term contracts approved
pursuant to this chapter on or after January 1, 2027, financial remuneration and incentives shall not
be applied, unless otherwise granted by the commission. For any calendar year in which the electric
distribution company’s actual return on equity exceeds the return on equity allowed by the
commission in the electric distribution company’s last general rate case, the commission shall have
the authority to adjust any or all remuneration paid to the electric distribution company pursuant to
this section in order to assure that such remuneration does not result in or contribute toward the
electric distribution company earning above its allowed return for such calendar year.
SECTION 12. Chapter 42-14.5 of the General Laws entitled “The Rhode Island Health
Care Reform Act of 2004 — Health Insurance Oversight” is hereby amended by adding thereto the
following section:
42-14.5-3.2. Health spending accountability and transparency program.
(a) The health insurance commissioner shall establish a health spending accountability and
transparency program with the following goals that are designed to promote affordability and curb
health care spending growth in Rhode Island:
(1) understand and create transparency around health care costs and the drivers of cost
growth;
(2) create shared accountability for health care costs and cost growth among insurers,
providers, and government by measuring performance against a cost growth target tied to one or
more economic indicators; and
(3) lessen the negative impact of rising health care costs on Rhode Island residents,
businesses, and government.
(b) The health insurance commissioner shall administer the health spending accountability
and transparency program and shall convene and chair the following advisory bodies to provide
input into the implementation of the program:
(1) An affordability advisory committee comprised of individuals without direct financial
interests in the health care system, including but not limited to independent health policy experts,
consumers or consumer representatives, employers or employer representatives, and
representatives of organized labor. The affordability advisory committee shall consist of eight (8)
members, as follows:
(i) two independent health policy expert members shall be appointed by the governor;
(ii) one consumer representative and one employer or organized labor representative shall
be appointed by the president of the senate;
(iii) one consumer representative and one employer or organized labor representative shall
1. be appointed by the speaker of the house;
2. (iv) the secretary of health and human services or their designee; and
3. (v) the health insurance commissioner or their designee;
4. (2) A stakeholder advisory council that includes, but shall not be limited to, representatives
5. of hospitals, health insurers, providers, and pharmaceutical manufacturers, in addition to
6. independent health policy experts, consumers or consumer representatives, employers or employer
7. representatives, and representatives of organized labor, all of whom shall be appointed by the health
8. insurance commissioner.
9. (c) For calendar years 2026 and 2027, the health insurance commissioner shall establish
10. the annual health care cost growth targets pursuant to the 2023 Compact to Reduce the Growth in
11. Health Care Costs while Improving Health Care Access, Equity, Patient Experience, and Quality
12. in Rhode Island.
13. (d) Not later than July 1, 2027, and every five years thereafter, the health insurance
14. commissioner shall establish annual health care cost growth targets for the succeeding five calendar
15. years for payers and large provider entities. In developing the health care cost growth targets, the
16. commissioner shall minimally consider:
17. (1) historical and forecasted changes in median household income in the state;
18. (2) the growth rate of potential gross state product;
19. (3) the most recent annual report prepared by the health insurance commissioner, pursuant
20. to subsection (g) of this section;
21. (4) recommendations from the affordability advisory committee and stakeholder advisory
22. council established pursuant to subsections (b)(1) and (b)(2) of this section, including any
23. information and analyses used to inform such recommendations.
24. (e) Not later than July 1, 2027, and every five years thereafter, the health insurance
25. commissioner, in collaboration with the executive office of health and human services, shall
26. establish annual all-payer primary care investment targets for the succeeding five calendar years.
27. In developing the all-payer primary care investment targets, the commissioner shall consider
28. recommendations from the affordability advisory committee and stakeholder advisory council
29. pursuant to subsections (b)(1) and (b)(2) of this section.
30. (f) The health insurance commissioner shall establish requirements for payers to report data
31. and other information necessary to calculate and monitor health care cost growth; evaluate
32. performance against the health care cost growth target established under subsections (c) and (d) of
33. this section; evaluate performance against the all-payer primary care investment target established
34. under subsection (e) of this section; and measure quality, public health, and health equity

performance, as defined by the health insurance commissioner. Such data shall include but not be
limited to:
(1) total and per capita health care expenditures;
(2) total and per capita medical expenses;
(3) net cost of private health insurance;
(4) primary care expenditures;
(5) quality performance data from the office of the health insurance commissioner’s
aligned measure set, as designated by the health insurance commissioner, with input from a
workgroup with expertise in quality measure alignment convened by the health insurance
commissioner; and
(6) performance on a set of public health and accountability measures, as designated by the
health insurance commissioner, with input from the executive office of health and human services,
the department of health, and a workgroup with expertise in public health convened by the health
insurance commissioner.
(g) The health insurance commissioner shall publish an annual report on health care
spending and quality in Rhode Island which includes, but is not limited to, the following:
(1) total and per capita health care spending trends at the statewide, insurance market,
individual payer, and large provider entity levels, including performance against the cost growth
target at each of these levels;
(2) net cost of private health insurance by insurance market and payer;
(3) primary care spending as a percentage of total medical expenses and annual primary
care spending growth, including progress toward meeting the all-payer primary care investment
target established in subsection (e) of this section;
(4) an analysis of the drivers of health care spending growth by service category, as well
as the relative contribution of utilization and price on the rate of growth, using data from the All-
Payer Claims Database;
(5) performance on select quality measures from the health insurance commissioner
commissioner’s aligned measure set, pursuant to subsection (f)(5) of this section;
(6) performance on a set of public health and accountability measures pursuant to
subsection (f)(6) of this section;
(7) status of ongoing performance improvement plans, results of performance
improvement plans completed during the prior performance year, and any penalties imposed due
to non-compliance with developing or implementing a performance improvement plan pursuant to
subsection (i) of this section; and
1. (8) recommendations for policy changes that may include, but not be limited to, strategies
2. to improve affordability for Rhode Island residents, control health care spending growth while
3. maintaining high standards for quality health care, and improve the oversight, performance and
4. efficiency of Rhode Island’s health care system.
5. (h) (1) The health insurance commissioner shall convene an annual public hearing
6. following the release of the annual report required pursuant to subsection (g) of this section. Such
7. public hearing shall involve an examination of:
8. (i) the report most recently prepared by the health insurance commissioner pursuant to
9. subsection (g) of this section;
10. (ii) the expenditures of provider entities and payers, including, but not limited to, health
11. care cost trends, primary care spending as a percentage of total medical expenses, and the factors
12. contributing to such costs and expenditures; and
13. (iii) any other matters that the health insurance commissioner deems relevant for the
14. purposes of this section.
15. (2) The health insurance commissioner may require any payer or provider entity that, for
16. the performance year, is found to have exceeded the health care cost growth target or has failed to
17. meet the all-payer primary care investment target, to participate in such hearing. The health
18. insurance commissioner may further require any payer, provider entity, or other entity, including
19. but not limited to a pharmaceutical manufacturer or pharmacy benefit manager, that is found to
20. have significantly contributed to health care spending growth in the state, as determined by the
21. commissioner, to participate in such hearing. Each payer, provider entity, or other entity that is
22. required to participate in such hearing shall provide testimony on issues identified by the health
23. insurance commissioner and provide additional information on actions taken to reduce such payer’s
24. or entity’s contribution to future statewide health care spending or to increase such payer’s or
25. provider entity’s primary care spending as a percentage of total medical expenses.
26. (3) The health insurance commissioner shall allow representatives from consumer groups,
27. employers, organized labor, community organizations, members of the public, and other interested
28. parties to provide testimony as part of the annual public hearing.
29. (i)(1) The health insurance commissioner may require any commercial health insurer or
30. large provider entity that has commercial market spending growth that exceeds the health care cost
31. growth target in any two out of three performance years to develop and implement a performance
32. improvement plan. For the purposes of requiring a performance improvement plan, a large provider
33. entity must have at least 120,000 attributed member months across commercial health insurers.
34. (2) A performance improvement plan must:

(i) identify key spending drivers and include concrete strategies and steps a large provider
entity or commercial health insurer will take to address such spending drivers;
(ii) identify an appropriate timeline for implementation, including a timeframe by which
the large provider entity or commercial health insurer will be subject to an evaluation by the health
insurance commissioner; and
(iii) have clear measurements of success. The commissioner may provide guidance,
feedback, and additional recommendations to a commercial health insurer or large provider entity
in developing a performance improvement plan.
(3) The health insurance commissioner shall review and approve, modify, or reject all
performance improvement plans.
(4) The health insurance commissioner shall monitor implementation throughout the
duration of the performance improvement plan to assess compliance with the performance
improvement plan’s terms and shall determine at the conclusion of the performance improvement
plan whether the entity has adequately addressed the targeted spending drivers.
(5) If the health insurance commissioner determines that the performance improvement
plan does not adequately meet the requirements in subsection (i)(2) of this section, or that an entity
has failed to comply with the terms of the performance improvement plan pursuant to subsection
(i)(4), the commissioner may impose a financial penalty on the commercial health insurer or large
provider entity. The health insurance commissioner shall develop criteria for imposing the
financial penalty based on factors that include, but are not limited to:
(i) the degree to which the large provider entity or commercial health insurer exceeded the
target;

(ii) the size of the large provider entity or commercial health insurer entity;

(iii) the good faith efforts of the large provider entity or commercial health insurer to
address health care spending growth; and
(iv) the financial condition of the large provider entity or commercial health insurer,
according to criteria adopted by the health insurance commissioner.
(6) The total cost of the health insurance commissioner’s review of a performance
improvement plan pursuant to subsection (i)(3) of this section, monitoring implementation of a
performance improvement plan pursuant to subsection (i)(4) of this section, and determination of
compliance with a performance improvement plan pursuant to subsection (i)(4) of this section shall
be borne by the commercial health insurer or large provider entity subject to the performance
improvement plan, according to parameters defined by the health insurance commissioner.
(j) The health insurance commissioner may establish data sharing agreements with the
1. executive office of health and human services, department of health, and any other identified state
2. agency to meet the requirements of this section and ensure a comprehensive view of health care
3. spending trends.
4. (k) The health insurance commissioner shall adopt a schedule of civil penalties determined
5. by the severity of the violation for: (i) any payer that fails to submit required data, submits
6. incomplete data, or otherwise obstructs data reporting pursuant to subsection (f) of this section; and
7. (ii) any payer, provider, or other entity that fails to comply with the health insurance
8. commissioner’s request to provide testimony during the annual public hearing pursuant to
9. subsection (h) of this section.
10. SECTION 13. Section 42-14.5-2.1 of the General Laws in Chapter 42-14.5 entitled “The
11. Rhode Island Health Care Reform Act of 2004 — Health Insurance Oversight” is hereby amended
12. to read as follows:

13 42-14.5-2.1. Definitions.

As used in this chapter:
(1) “Accountability standards” means measures including service processes, client and
population outcomes, practice standard compliance, and fiscal integrity of social and human service
providers on the individual contractual level and service type for all state contracts of the state or
any subdivision or agency to include, but not limited to, the department of children, youth and
families (DCYF), the department of behavioral healthcare, developmental disabilities and hospitals
(BHDDH), the department of human services (DHS), the department of health (DOH), and
Medicaid. This may include mandatory reporting, consolidated, standardized reporting, audits
regardless of organizational tax status, and accountability dashboards of aforementioned state
departments or subdivisions that are regularly shared with the public.
(2) “Accountable Care Organization” means, for the purposes of § 42-14.5-3.2, a provider
organization contracted with one or more payers and held accountable for the quality of health care,
outcomes and total cost of care of an attributed commercial and/or Medicare population.
(3) “Accountable Entity” means, for the purposes of § 42-14.5-3.2, a provider organization
contracted with one or more Rhode Island Medicaid insurers and held accountable for the quality
of health care, outcomes and total cost of care of an attributed Medicaid population.
(2) (4) “Executive Office of Health and Human Services (EOHHS)” means the department
that serves as “principal agency of the executive branch of state government” (§ 42-7.2-2)
responsible for managing the departments and offices of: health (RIDOH), human services (DHS),
healthy aging (OHA), veterans services (VETS), children, youth and families (DCYF), and
behavioral healthcare, developmental disabilities and hospitals (BHDDH). EOHHS is also

designated as the single state agency with authority to administer the Medicaid program in Rhode
Island.
(5) “Health care cost growth target” means the targeted annual per capita growth rate for
Rhode Island’s total health care spending, expressed as the percentage growth from the prior year’s
per capita spending.
(6) “Large provider entity” means a provider organization contracted with one or more
payers that, at a minimum, includes professional providers to whom patients can be attributed, and
that collectively, during any given calendar year, has at least 60,000 attributed member months
across payers in the commercial, Medicaid or Medicare market, enabling the organization to
participate in total cost of care contracts, even if it is not engaged in a total cost of care contract as
an Accountable Care Organization or a Medicaid Accountable Entity.
(7) “Market” means the highest level of categorization of the health insurance market and
shall include Medicare Fee-For-Service and Medicare Managed Care, collectively referred to as
the “Medicare market;” Medicaid Fee-for-Service and Medicaid Managed Care, collectively
referred to as the “Medicaid market;” and individual, self-insured, small and large group markets
and student health insurance, collectively referred to as the “commercial market.”
(8) “Net cost of private health insurance” means the costs to Rhode Island residents
associated with the administration of private health insurance, including Medicare Managed Care
and Medicaid Managed Care. It is defined as the difference between health premiums earned and
benefits incurred, and consists of insurers’ costs of paying bills, advertising, sales commission and
other administrative costs, premium taxes, and profits (or contributions to reserves) or losses.
(9) “Payer” means any public payer, including Medicaid and Medicare; any health insurer
offering Medicaid Managed Care or Medicare Managed Care plans in Rhode Island; any
commercial health insurer, defined as an entity subject to the insurance laws and regulations of
Rhode Island, or subject to the jurisdiction of the health insurance commissioner, that contracts or
offers to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health
care services, including, without limitation, an insurance company offering accident and sickness
insurance, a health maintenance organization, a non-profit hospital service corporation, a non-profit
medical service corporation, and a non-profit hospital and medical service corporation; and any
commercial health insurer that provides benefit administration for self-insured employers or labor
trusts, or both.
(10) “Pharmaceutical manufacturer” means any entity holding legal title to or possession
of a national drug code number issued by the Federal Food and Drug Administration.
(11) “Pharmacy Benefit Manager” has the same meaning as defined in § 27-19-26.2.

(12) “Primary care expenditures” means all claims-based and non-claims-based payments
by commercial health insurers, Medicaid, and Medicare directly to a primary care practice or
accountable care organization for primary care services delivered to Rhode Island residents at a
primary care site of care, which shall include a primary care outpatient setting, federally qualified
health center, school-based health center, or via telehealth, but shall not include a third-party
telehealth vendor that does not contract with such sites of care to deliver services. A primary care
site of care also does not include urgent care centers or retail pharmacy clinics.
(3)(13) “Primary care services” means, for the purposes of reporting required under § 42-
14.5-3(t), professional services rendered by primary care providers at a primary care site of care,
including care management services performed in the context of team-based primary care.
(14) “Provider” has the same meaning as defined in § 27-18-1.1, § 27-19-1, and § 27-20-

12 1.

(4)(15) “Rate review” means the process of reviewing and reporting of specific trending
factors that influence the cost of service that informs rate setting.
(5)(16) “Rate setting” means the process of establishing rates for social and human service
programs that are based on a thorough rate review process.
(6)(17) “Social and human service program” means a social, mental health, developmental
disability, child welfare, juvenile justice, prevention services, habilitative, rehabilitative, substance
use disorder treatment, residential care, adult or adolescent day services, vocational, employment
and training, or aging service program or accommodations purchased by the state.
(7)(18) “Social and human service provider” means a provider of social and human service
programs pursuant to a contract with the state or any subdivision or agency to include, but not be
limited to, the department of children, youth and families (DCYF), the department of behavioral
healthcare, developmental disabilities and hospitals (BHDDH), the department of human services
(DHS), the department of health (DOH), and Medicaid.
(8)(19) “State government and the provider network” refers to the contractual relationship
between a state agency or subdivision of a state agency and private companies the state contracts
with to provide the network of mandated and discretionary social and human services.
(20) “Total health care expenditures” means the total medical expense incurred by Rhode
Island residents for all health care services for all payers reporting to the office of the health
insurance commissioner, inclusive of prescription drugs, plus their net cost of private health
insurance.
(21) “Total medical expense” means the sum of the allowed amount of total claims and
total non-claims spending paid to providers, inclusive of prescription drugs, incurred by Rhode

Island residents for all health care services.
SECTION 14. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 157.2
RHODE ISLAND MARKETPLACE AFFORDABILITY PROGRAM ACT OF 2026
42-157.2-1. Short title and purpose.
(a) This chapter shall be known and may be cited as the "Rhode Island Marketplace
Affordability Program Act of 2026."
(b) The purpose of this chapter is to create a state affordability program to reduce health
insurance premiums for low- and moderate-income consumers enrolled in health insurance
coverage through the Rhode Island health benefit exchange.

12 42-157.2-2. Definitions.

As used in this chapter:
(1) "Exchange" means the Rhode Island health benefit exchange established within the
department of administration by § 42-157-1.
(2) "Health insurance coverage" has the same meaning as set forth in § 27-18.5-2.
(3) "Individual market" has the same meaning as set forth in § 27-18.5-2.
(4) “Insurer” has the same meaning as set forth in § 42-157-2.
(5) "Program" means the Rhode Island individual market affordability program
established by § 42-157.2-3.
(6) "State" means the State of Rhode Island.
42-157.2-3. Establishment of the Rhode Island individual market affordability
program.
(a) The exchange is authorized to establish and administer a state-based affordability
program, to be known as the Rhode Island individual market affordability program.
(b) The program is intended to mitigate the impact of high and rising healthcare costs for
low- and middle-income Rhode Islanders who purchase health insurance coverage through the
exchange.
(c) The program may provide state-based subsidies to individuals enrolled in health
insurance coverage through the exchange to make health insurance coverage more accessible and
affordable for individuals and households.
42-157.2-4. General program parameters.
(a) State-based subsidy amounts shall be based on annual affordability percentages,
following the methodology established by the exchange under § 42-157.2-5.
1. (b) Any state-based subsidy provided by the program will be remitted by the exchange to
2. the insurer selected by the eligible enrollee.
3. (c) A state-based subsidy provided by the program shall be provided only to a Rhode Island
4. resident who is determined eligible by the exchange for the federal premium tax credit authorized
5. under § 36B of the internal revenue code and enrolled in health insurance coverage through the
6. exchange.
7. (1) A state-based subsidy may also be provided by the program to a Rhode Island resident
8. whose household income exceeds the limit set forth under § 36B of the internal revenue code but
9. meets all other eligibility criteria for the federal premium tax credit authorized under § 36B of the
10. internal revenue code, and is enrolled in health insurance coverage through the exchange.
11. 42-157.2-5. Adoption of methodology and annual affordability percentages.
12. (a) Subject to appropriation, the exchange shall adopt by September 30th, and may amend,
13. annual affordability percentages for each upcoming coverage year to implement this chapter.
14. (b) Methodology for determining annual affordability percentages shall be set forth in
15. regulations promulgated by the exchange, consistent with the purposes of this chapter. The
16. exchange shall utilize this methodology to develop the annual affordability percentages.
17. (c) Annual affordability percentages, and any amendments thereto, shall be adopted by the
18. exchange after a duly noticed public meeting with advice from the exchange advisory board
19. established under § 42-157-7.
20. (1) The affordability percentages adopted for a coverage year shall be based on funds
21. appropriated to the program for that coverage year and consistent with the parameters specified in
22. § 42-157.2-4.
23. (i) All unexpended or unencumbered balances of appropriations at the end of any fiscal
24. year shall be reappropriated to the following fiscal year and made immediately available for same
25. purposes as the former appropriations.
26. (2) The exchange shall provide appropriate opportunities for stakeholders and the public
27. to consult in the adoption of the affordability percentages.
28. (3) The affordability percentages shall be tailored to maximize impact, targeting premium
29. assistance to enrollees based on their income and premium burden after accounting for other federal
30. and state assistance.
31. (i) For the year beginning January 1, 2027, the affordability percentages shall prioritize
32. households with incomes below 200% of the federal poverty level.
33. 42-157.2-6. Rules and regulations.
34. (a) The exchange may promulgate regulations as necessary to carry out the purposes of this
  1. chapter.
  2. (b) The requirements of the administrative procedures act (chapter 35 of title 42) shall
  3. apply for any rules or regulations established or issued by the exchange pursuant to this
  4. chapter, except for the first implementation year of the program established under this chapter.
  5. (1) For the first implementation year, the exchange shall provide opportunities for
  6. stakeholders and the public to provide input. This shall include, but is not limited to:
  7. (i) A duly noticed public meeting with advice from the exchange advisory board
  8. established under § 42-157-7;
  9. (ii) A 30-day public comment period; and
  10. (iii) Presentation by the exchange to the public of accompanying explanatory
  11. documentation outlining any proposed regulatory adoption, any significant changes thereto,
  12. and the rationale for those decisions.
  13. 42-157.2-7. Construction.
  14. (a) This chapter shall not be construed to create an entitlement, medical assistance, or
  15. public assistance program of any kind, to appropriate any funds, to require the general assembly to
  16. appropriate any funds, or to increase or decrease taxes owed by a taxpayer.
  17. (b) In construing this chapter, the regulations promulgated by the exchange pursuant to §
  18. 42-157-14 shall apply to the extent those regulations do not conflict with this chapter or regulations
  19. promulgated by the exchange pursuant to § 42-157.2-6(a).
  20. 42-157.2-8. Severability.
  21. The provisions of this chapter are severable, and if any provision hereof shall be held
  22. invalid in any circumstances, any invalidity shall not affect any other provisions or
  23. circumstances.
  24. SECTION 15. Section 2 shall take effect on July 1, 2026. The remainder of this article shall
  25. take effect upon passage.
    26
    1. ARTICLE 12
    2. RELATING TO EFFECTIVE DATE
    3. SECTION 1. This act shall take effect as of July 1, 2026, except as otherwise provided herein.
    4. SECTION 2. The article shall take effect upon passage.

======== LC004134

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2026 -- H 7127

35-4-27. Indirect cost recoveries on restricted receipt accounts.

39-18.1-5. Allocation of funds.

23-24.12-3. Establishment of paint stewardship program.

37-24-3. Definitions.

37-24-5. Administration and reports — Green buildings advisory committee.

42-12-1.6. Transfer of functions to the office of energy resources.

42-12-1.5. Transfer of functions from the office of energy resources.

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

42-17.1-2. Powers and duties.

42-140-13. Energy Benchmarking and Performance Standards Program

46-15.1-23. Transfer of powers and functions from the water resources board for big

river reservoir administration.

46-31.1-1. Legislative findings.

46-31.1-2. Definitions.

46-31.1-3. Bays, Rivers and Watersheds Fund.

46-33-1. Definitions.

46-33-2. Rhode Island lake management program – Established.

44-6.6-1. Short title.

44-6.6-2. Definitions.

44-6.6-3. Establishment of tax amnesty.

44-6.6-4. Interest under tax amnesty.

44-6.6-5. Implementation.

44-6.6-6. Disposition of monies.

44-6.6-7. Analysis of amnesty program by tax administrator.

44-6.6-8. Rules and regulations.

44-11-2.3. Pass-through entities — Election to pay state income tax at the entity level.

44-11-11. “Net income” defined.

44-20-12.8. Floor stock tax on cigarettes and stamps.

44-20-12. Tax imposed on cigarettes sold.

44-20-13. Tax imposed on unstamped cigarettes.

44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, pipe

tobacco products, and electronic nicotine-delivery products.

44-20-19. Sales of stamps to distributors.

44-30-104. Child Tax Credit.

44-30-2.6. Rhode Island taxable income — Rate of tax.

44-30-12. Rhode Island income of a resident individual.

44-34.1-2. City, town, and fire district reimbursement.

45-2-35.1. City of Newport — Landing and boarding fees.

16-7-41.1. Eligibility for reimbursement.

16-7.2-3. Permanent foundation education aid established.

16-105-3. Roles and responsibilities.

16-113-1. Short title.

16-113-3. Establishment of scholarship program.

16-113-4. Definitions.

16-113-7. Reporting and disbursement.

45-38.2-2. School building authority capital fund.

23-17-38.1. Hospitals – Licensing fee.

40-8-13.4. Rate methodology for payment for in-state and out-of-state hospital

services.

40-8-19. Rates of payment to nursing facilities.

40-8.3-2. Definitions.

40-8.3-3. Implementation.

42-7.2-5. Duties of the secretary.

42-72-37. Family Care Community Partnerships.

40.1-1-13. Powers and duties of the office.

40.1-8.6-2. Behavioral health crisis services system established.

40.1-8.6-3. Funding of the 988 Suicide & Crisis Lifeline.

40.1-8.6-4. Implementation.

27-84-1. Short title.

27-84-2. Definitions.

27-84-3. Pharmacy Benefit Manager Transparency.

27-84-4. Pharmacy Benefit Manager Study.

27-84-5. Regulations.

31-36-7. Monthly report of distributors — Payment of tax.

31-36-20. Disposition of proceeds.

39-1-27.7. System reliability and least-cost procurement.

39-2-29. In-state transmission owner required to participate in the regional

independent system operator.

39-2-1.2. Utility base rate — Advertising, demand-side management, and renewables.

39-2.2-2. Road repair by public utility or utility facility.

39-26-5.1. Zero-emission resources.

39-26-2. Definitions.

39-26-4. Renewable energy standard.

39-26-6. Duties of the commission.

39-26-7. Renewable energy development fund.

39-26.4-2. Definitions.

42-14.5-3.2. Health spending accountability and transparency program.

42-157.2-1. Short title and purpose.

42-157.2-3. Establishment of the Rhode Island individual market affordability