A N     A C T

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2000

Introduced By: Representatives Watson, Kelley, Larisa, Scott and Gorham

Date Introduced : February 11, 1999

It is enacted by the General Assembly as follows:

ARTICLE 1 MAKING APPROPRIATIONS IN SUPPORT OF FY 2000

ARTICLE 2 RELATING TO THE REFUNDING BOND AUTHORITY

ARTICLE 3 RELATING TO SALES AND USE TAX

ARTICLE 4 RELATING TO GENERAL PUBLIC ASSISTANCE

ARTICLE 5 RELATING TO CAPITAL DEVELOPMENT PROGRAM

ARTICLE 6 RELATING TO ENVIRONMENTAL MANAGEMENT

ARTICLE 7 RELATING TO HOSPITAL LICENSING FEE

ARTICLE 8 RELATING TO WORKERS' COMPENSATION ADMINISTRATIVE FUND

ARTICLE 9 RELATING TO REVISED APPROPRIATIONS

ARTICLE 10 RELATING TO DEPARTMENT OF ATTORNEY GENERAL

ARTICLE 11 RELATING TO RHODE ISLAND JUSTICE COMMISSION

ARTICLE 12 RELATING TO RIPTA GAS TAX

ARTICLE 13 RELATING TO ENTERPRISE ZONES

ARTICLE 14 RELATING TO MEDICAL ASSISTANCE

ARTICLE 15 RELATING TO UNCOMPENSATED CARE

ARTICLE 16 RELATING TO RESOURCE RECOVERY CORPORATION

ARTICLE 17 RELATING TO HEALTH CARE

ARTICLE 18 RELATING TO COMPENSATION OF BOARD MEMBERS

ARTICLE 19 RELATING TO MENTAL HEALTH, RETARDATION AND HOSPITALS

ARTICLE 20 RELATING TO DEPARTMENT OF HUMAN SERVICES

ARTICLE 21 RELATING TO DELAWARE PLAN

ARTICLE 22 RELATING TO NURSING FACILITIES

ARTICLE 23 RELATING TO EDUCATION AID

ARTICLE 24 RELATING TO PHARMACEUTICAL ASSISTANCE TO THE

ELDERLY ACT

ARTICLE 25 RELATING TO THE STATE RETIREMENT BOARD

ARTICLE 26 RELATING TO A SPECIAL GENERAL ASSEMBLY CAPITOL

PLAN TASK FORCE

ARTICLE 27 RELATING TO EFFECTIVE DATE

ARTICLE 1

RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2000

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, 2000. The amounts identified for federal funds and restricted receipts shall be made available pursuant to section 35-4-22 and chapter 41 of title 42 of the Rhode Island General Laws. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw his or her 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 him or her of properly authenticated vouchers.

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.

SECTION 4. From the appropriation for contingency shall be paid such sums as may be required at the discretion of the Governor and the Director of Administration 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 of the General Laws of 1956, as amended. All expenditures and transfers from this account shall be approved by the Director of Administration and the Governor.

SECTION 5. The reimbursement of any state department or agency for the cost of work or services performed for any other department or agency is hereby authorized, subject to regulations promulgated by the Director of Administration.

SECTION 6. 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 7. Appropriation for Temporary Disability Insurance Administration -- There is hereby appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws 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, 2000.

SECTION 8. Appropriation of Unemployment Insurance and Training Funds -- There is hereby appropriated pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 2000.

SECTION 9. Appropriation of University and College Funds -- There is hereby appropriated pursuant to section 16-59-9 of the Rhode Island General Laws relating to the appropriation of funds by the General Assembly for Higher Education, and section 16-59-18 of the General Laws relating to receipts from sources other than appropriations, any funds received by the Board of Governors for Higher Education for the fiscal year ending June 30, 2000 payable out of the University and College Funds.

SECTION 10. Appropriation of Rhode Island Telecommunications Authority Funds -- There is hereby appropriated pursuant to section 16-61-13 of the Rhode Island General Laws relating to the appropriation of funds by the General Assembly for educational television, and section 16-61-6 of the General Laws relating to receipts from sources other than appropriations, any funds received by the Rhode Island Public Telecommunications Authority for the fiscal year ending June 30, 2000 payable out of the Rhode Island Public Telecommunications Authority Fund. On the order of the Director of Administration, the State Controller is hereby authorized and directed to draw his or her orders upon the General Treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

SECTION 11. 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 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, Speaker of the House of Representatives, and the Majority Leader of the Senate 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 Senate Majority Leader. 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.

FTE POSITION AUTHORIZATION

SECTION 12. The amounts reflected in this Article include the appropriation of Rhode Island Capital Plan year 2000 and supersede appropriations provided for FY 2000 within Section 13 of Article 1 of Chapter 31 of the P.L. of 1998.

The following amounts are hereby appropriated out of any money in the Rhode Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending June 30, 2001, June 30, 2002, and June 30, 2003. These amounts supersede appropriations provided within Section 13 of Article 1 of Chapter 31 of the P.L. of 1998. For the purposes and functions hereinafter mentioned, the State Controller is hereby authorized and directed to draw his or her orders upon the General Treasurer for the payment of such sums and such portions thereof as may be required by him or her upon receipt of properly authenticated vouchers.

SECTION 13. Reappropriation of Rhode Island Capital Plan Projects. - Any unexpended funds from Delaware Plan Capital Fund project appropriations for the fiscal year ending June 30, 1999 shall be reappropriated in the ensuing fiscal year and made available for the same purpose.

SECTION 14. Higher Education Assistance Authority Need Based Grants and Work Opportunities end of year balances. – Reappropriation. Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget", all unexpended, encumbered, and unencumbered balances of revenue appropriations for "Need Based Grants and Work Opportunities – RIGL 16-56-6 and 16-56-8" contained in section 1 of this article within the Higher Education Assistance Authority, whether regular or special appropriations, at the end of fiscal year 1999 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

SECTION 15. Section 37-2-7 of the General Laws in chapter 37-2 entitled "State Purchases" is hereby amended to read as follows:

37-2-7. Definitions. – The words defined in this section shall have the meanings set forth below whenever they appear in this chapter, unless the context in which they are used clearly requires a different meaning or a different definition is prescribed for a particular section, group of sections or provision.

(1) "Business" shall mean any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is conducted.

(2) "Change order" shall mean a written order signed by the purchasing agent or contractor directing or allowing the contractor to make changes which the changes clause of the contract authorizes the purchasing agent or contractor to order without the consent of the contractor or purchasing agent.

(3) "Chief purchasing officer" shall mean the director of administration, who shall be responsible for all purchases by the state and for a public agency. "Chief purchasing officer" shall mean the executive director or the chief operational officer of the agency.

(4) "Construction" shall mean the process of building, altering, repairing, improving, or demolishing any public structures or building, or other public improvements of any kind to any public real property. It does not include the routine maintenance or repair of existing structures, buildings, or real property performed by salaried employees of the state of Rhode Island in the usual course of their job.

(5) "Contract" shall mean all types of agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It shall include awards; contracts of a fixed-price cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; purchase orders; and construction management contracts. It also includes supplemental agreements with respect to any of the foregoing. "Contract" does not include labor contracts with employees of state agencies.

(6) "Contract modification" shall mean any written alteration in the specifications, delivery point, rate of delivery, contract period, price, quantity, or other contract provisions of any existing contract, whether accomplished by unilateral action in accordance with a contract provision, or by mutual action of the parties to the contract. It shall include bilateral actions, such as supplemental agreements, and unilateral actions, such as change orders, administrative changes, notices of termination, and notices of the exercise of a contract option.

(7) "Contractor" shall mean any person having a contract with a governmental body.

(8) "Data" shall mean recorded information, regardless of form or characteristic.

(9) "Designee" shall mean a duly authorized representative of a person holding a superior position.

(10) "Employee" shall mean an individual drawing a salary from a governmental body or public agency, whether elected or not, and any nonsalaried individual performing personal services for any governmental body or public agency.

(11) "Governmental body" shall mean any department, commission, council board, bureau, committee, institution, legislative body, agency, government corporation, including, without limitation, the board of governors for higher education except for purchases which are funded by restricted, sponsored or auxiliary monies for the period through July 1, 2000, as provided for in subdivision (16) of this section, and board of regents – elementary and secondary education or other establishment of the executive, legislative or judicial branch of the state.

(12) "May" shall mean permissive.

(13) "Negotiation" shall mean contracting by either the method set forth in section 37-2-19, 37-2-20, or 37-2-21 of this chapter.

(14) "Person" shall mean any business, individual, organization, or group of individuals.

(15) 'Procurement" shall mean the purchasing, buying, renting, leasing, or otherwise obtaining of any supplies, services, or construction. It shall also include all functions that pertain to the obtaining of any supply, service, or construction item, including a description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

(16) "Public agency" shall mean the Rhode Island industrial recreational building authority, the Rhode Island economic development corporation, the Rhode Island industrial facilities corporation, the Rhode Island refunding bond authority, Rhode Island housing and mortgage finance corporation, the Rhode Island resource recovery corporation, the Rhode Island public transit authority, the Rhode Island student loan authority, the Howard development corporation, the water resources board corporate, the Rhode Island health and education building corporation, the Rhode Island higher education assistance authority, the Rhode Island turnpike and bridge authority, the Blackstone Valley district commission, the Narragansett Bay water quality management district commission, the Rhode Island telecommunications authority, the convention center authority, the Channel 36 foundation, the board of governors for higher education for all purchases which are funded by restricted, sponsored or auxiliary monies, their successors and assigns, and any other body corporate and politic which has been or will be created or established within this state excepting cities and towns. The board of governors for higher education for all purchases which are funded by restricted, sponsored or auxiliary monies shall be included in the definition of "public agency" only through July 1, 1999 2000.

(17) "Purchase request" or "purchase requisition" shall mean that document whereby a using agency requests that a contract be entered into to obtain goods and/or services for a specified need, and may include, but is not limited to, the technical description of the requested item, delivery requirements, transportation mode request, criteria for evaluation of proposals, and/or preparation of suggested sources of supply, and information supplied for the making of any written determination and finding required by section 37-2-6.

(18) "Purchasing agency" shall mean any governmental body which is authorized by this chapter, its implementing regulations, or by way of delegation from the chief purchasing officer to contract on its own behalf rather than through the central contracting authority of the chief purchasing officer.

(19) "Purchasing agent" shall mean any person authorized by a governmental body in accordance with procedures prescribed by regulations, to enter into and administer contracts and make written determinations and findings with respect thereto. The term shall also include an authorized representative acting within the limits of authority. "Purchasing agent" shall also mean the person appointed in accordance with section 37-2-1.

(20) "Services" shall mean the rendering, by a contractor, of its time and effort rather than the furnishing of a specific end product, other than reports which are merely incidental to the required performance of services. "Services" does not include labor contracts with employees of state agencies.

(21) "Shall" shall mean imperative.

(22) "State" shall mean the state of Rhode Island and any of its departments or agencies and public agencies.

(23) "Supplemental agreement" shall mean any contract modification which is accomplished by the mutual action of the parties.

(24) "Supplies" shall mean all property, including, but not limited to, leases of real property, printing, and insurance, except land or permanent interest in land.

(25) "Using agency" shall mean any governmental body or public agency of the state which utilizes any supplies, services or construction purchased under this chapter.

(26) As used in section 37-2-59 of this chapter, "architect" or "engineer" services shall mean those professional services within the scope of practice of architecture, professional engineering, or registered land surveying, pertaining to construction, as defined by the laws of this state. "Consultant" means any person with whom the state and/or a public agency has a contract which contract provides for the person to give direction or information as regards a particular area of knowledge in which the person is a specialist and/or has expertise.

(27) For purposes of sections 37-2-62 – 37-2-70, "directors" shall mean those members of a public agency appointed pursuant to a statute, who comprise the governing authority of the board, commission, authority, and/or corporation.

SECTION 16. Reappropriation of Department of Children, Youth and Families' Higher Education Opportunity Incentive Grant. -- Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget", all unexpended, encumbered, and unencumbered balances of revenue appropriations for Higher Education Opportunity Incentive Grant contained in section 1 of this article within the Department of Children, Youth and Families, whether regular or special appropriations, at the end of fiscal year 2000 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

SECTION 17. This article shall take effect July 1, 1999.

SECTION 1. The amounts appropriated within section 1 of article 1 of this act include eight hundred forty one thousand seven hundred twenty five dollars ($841,725) allocable to the payment of debt service on bonds of the Rhode Island Refunding Bond Authority issued pursuant to Chapter 35-8.1 of the general laws.

SECTION 2. The state applied certain bond proceeds of the Rhode Island Refunding Bond Authority to refund bonds issued pursuant to Chapter 46-25 of the general laws for the Narragansett Bay Water Quality Management District Commission. To the extent that funds of said commission are not sufficient to pay debt service of nineteen thousand one hundred seventy dollars ($19,170) on the bonds of the Rhode Island Refunding Bond Authority coming due during the fiscal year ending June 30, 2000, and allocable to this Commission, there is hereby appropriated from funds in the treasury not otherwise appropriated an amount sufficient for payment of said debt service.

SECTION 3. This article shall take effect July 1, 1999.

SECTION 1. Section 44-19-40 of the General Laws in Chapter 44-19 entitled "Sales and Use Tax - Enforcement and Collection" is hereby amended to read as follows:

44-19-40. Disposition of revenue. - (a) Notwithstanding any other provisions of law to the contrary, all monies received by the tax administrator under the provisions of chapters 18 and 19 of title 44 shall be paid over to the general treasurer; provided however that for the fiscal year commencing July 1, {DEL 1998 DEL} {ADD 1999 ADD}, six-tenths of one percent (0.6%) within the existing sales and use tax rates established in section 44-18-18 and 44-18-20 exclusive of any receipts resulting from any expansion of the coverage of the sales and use taxes through legislation enacted subsequent to February 1, 1993 is hereby appropriated to the Rhode Island Depositors Economic Protection Corporation Special Revenue Fund within the Rhode Island Depositors Economic Protection Corporation established pursuant to section 42-116-31 of the general laws for the purposes specified in chapter 116 of title 42. In clarification of the intent of the legislature, six-tenths of one percent (0.6%) within the existing sales and use tax rates established in chapter 18 of title 44 exclusive of any receipts resulting from any expansion of the coverage of the sales and use taxes through legislation enacted subsequent to February 1, 1993 will be dedicated to the special revenue fund created by section 42-116-31 of the general laws subject to the making of an annual appropriation by the general assembly of such sales and use tax receipts. Provided further, that the net taxes received and/or refunded through and including July 31, {DEL 1998 DEL} {ADD 1999 ADD} shall be deemed to be for the periods ending prior to July 1, 1998 1999 and net taxes received and/or refunded on or after August 1, {DEL 1998 DEL} {ADD 1999 ADD} shall be deemed to be for periods ending on July 1, {DEL 1998 DEL} {ADD 1999 ADD} and thereafter. The state controller shall establish an escrow account within the general fund to be known as the "Depositor's Protection Account."

(b) The state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the transfer of such sum or such portion thereof from the depositor's protection account to the special revenue fund. Such transfers shall be made at the end of each calendar month.

SECTION 2. To the extent that monies appropriated by section 44-19-40 of the general laws are not sufficient to pay the principal and interest becoming due on any special obligation bonds secured by the special revenue fund established pursuant to section 42-116-31 of the general laws during the fiscal year commencing July 1, {DEL 1998 DEL} {ADD 1999 ADD} or the amount required to be deposited into any debt service fund for such purposes, there is hereby appropriated to the special revenue fund an amount sufficient for the payment of principal and interest becoming due on any such special obligation bonds secured by the special revenue fund in the fiscal year commencing July 1, {DEL 1998 DEL} {ADD 1999 ADD} or the amount required to be deposited into any debt service fund for such purposes.

SECTION 3. This article shall take effect July 1, 1999.

SECTION 1. Hardship Contingency Fund - Out of the sum appropriated to the department of human services in Article 1 for general public assistance, the sum of {DEL three hundred fifty thousand dollars ($350,000) DEL} {ADD four hundred thousand dollars ($400,000) ADD} shall be used as a hardship contingency fund for the purposes and subject to the limitations hereinafter provided, and the state controller is hereby authorized and directed to draw his or her order 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 him or her of duly authenticated vouchers. From the aforesaid appropriation for hardship contingency, the director of the department of human services, in his or her sole discretion, may authorize payments of cash assistance benefits up to two hundred dollars ($200) per month upon a showing of hardship by an individual who is eligible for general public assistance medical benefits under section 40-6-3.1(a)(1). The director shall not be required to promulgate any new, additional or separate rules or regulations in connection with his or her disbursement of the contingency fund created hereby.

SECTION 2. This article shall take effect July 1, 1999.

SECTION 1. Extension of previous authorizations . -- The general assembly, pursuant to the provisions of section 35-8-25, hereby extends to the termination dates contained herein, the authority to issue the following general obligation bond authorizations in the amounts stated. The original authorizations enacted by public law and approved by the people, remain unissued as of February 1, 1999 and are as follows:

		Unissued
		Amount to be
Purpose	Statutory Reference	Extended	TerminationDate
Land Acquisition-Industrial
Development	Ch. 157 - P.L. of 1979	$449,925	June 30, 2002
Underground Storage Tank
Replacement	Ch. 486 - P.L. of 1985	601,964	June 30, 2001
Clean Water Act Environmental
Trust Fund	Ch. 289 - P.L. of 1986	4,039,627	June 30, 2001
Environmental
Management	Ch. 419 - P.L. of 1986	624,842	June 30, 2004
MHRH	Ch. 419 - P.L. of 1986	120,000	June 30, 2003
Open Space	Ch. 425 - P.L. of 1987	8,143,254	June 30, 2004
Water Resources	Ch. 417 - P.L. of 1987	4,235,000	June 30, 2004
Rhode Island
Aqua Fund	Ch. 443 - P.L. of 1988	440,343	June 30, 2001
Blackstone Valley District
Commission	Ch. 434 - P.L. of 1990	5,300,000	June 30, 2003
Pawtuxet River
District Commission	Ch. 434 - P.L. of 1990	9,000,000	June 30, 2004

The general assembly hereby extends for an additional year the authorization granted to the Rhode Island Industrial Recreational Building Authority provided by Chapter 91 of the Public Laws of 1958, and Chapter 537, Section 3, of the Public Laws of 1987.

SECTION 2. Extinguishments of previous authorizations . -- The general assembly hereby extinguishes as of June 30, 1999 the authority to issue the following general obligation authorizations pursuant to the provisions of Section 35-8-25 of the general laws. The original authorizations, enacted by public law and approved by the people, remain unissued as of February 1, 1999:

		Unissued To Be
		Authority	Extinguished
Heritage Preservation	Ch. 369 - P.L. of 1985	$778,538	June 30, 1999
Blackstone Valley District
Commission	Ch. 289 - P.L. of 1986	940,000	June 30, 1999
Narragansett Bay
Commission	Ch. 342-P.L. of 1980	574,000	June 30, 1999

SECTION 3. Effective Date . Section 1 of this article shall take effect on June 30, 1999. Section 2 shall take effect upon passage.

SECTION 1. Pursuant to the public laws, 1998, Chapter 31, Article 8, the effective date of the department of the environment, which was created by Chapter 461 of the public laws, 1990 was delayed until July 1, 1999 due to fiscal constraints.

The effective date of the following sections created by Chapter 461 of the public laws, 1990 are postponed again until July 1, 2000, sections 42-17.1-1 through 42-17.1-39 inclusive, and 42-17.1-41 through 42-17.1-44 inclusive.

SECTION 2. Section 42-17.1-40 of the General Laws in Chapter 42-17.1 entitled "Department of the Environment" is hereby amended to read as follows:

42-17.1-40 Continuity of administrative functions. -- In order to insure continuity of the administrative business of the state, the actual transfer of functions or any part thereof to the department of the environment from the department of environmental management, department of health, water resources board, and such other boards, commissions, departments, and/or agencies has been postponed after the effective date of Chapter 461 of the Public Laws of 1990, and the functions and authorities of the department of environmental management, the department of health, water resources board, and such other boards, commissions, departments and/or agencies shall remain unaffected hereby, regardless of the repeal by chapter 461 of the public laws of 1990 of any law under which such departments, boards, commissions or other agencies are empowered which laws shall remain in effect until July 1, {DEL 1999 DEL} {ADD 2000 ADD} when the transfers herein provided can be put into force and effect at which time the repeal of such laws shall become final.

SECTION 3. This article shall take effect on July 1, 1999. All acts of the state which were authorized by and performed in good faith and in reliance upon the effectiveness of Chapter 461 of the public laws, 1990, Chapter 133 of the public laws, 1992, Chapter 138 of the public laws, 1993, Chapter 70 of the public laws, 1994, Chapter 370 of the public laws, 1995, Chapter 100 of the public laws, 1996, Chapter 30 of the public laws, 1997, and Chapter 31 of the public laws, 1998 are hereby ratified and confirmed.

SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled "Licensing of Health Care Facilities" is hereby amended to read as follows:

23-17-38.1 Hospitals - Licensing Fee. -- (a) There is hereby imposed a hospital licensing fee at the rate of two percent (2.0%) upon the gross patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, 1995. This licensing fee shall be administered and collected by the tax administrator, division of taxation within the department of administration, and all the administration, collection and other provisions of chapter 50 and 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator on {DEL October 30, 1998 DEL} {ADD October 29, 1999 ADD}, and payments shall be made by electronic transfer of monies to the general treasurer and deposited to the general fund in accordance with section 44-50-11. Every hospital shall, on or before October 1, {DEL 1998 DEL} {ADD 1999 ADD}, make a return to the tax administrator containing the correct computation of gross patient services revenue and the licensing fee due upon such amount. All returns shall be signed by the hospital's authorized representative, subject to the pains and penalties of perjury.

(b) For purposes of this section the following words and phrases shall have the following meaning:

(1) "Hospital" means a person or governmental unit duly licensed in accordance with this chapter to establish, maintain, and operate a hospital, except a hospital whose primary service and primary bed inventory are psychiatric.

(2) "Gross patient services revenue" means the gross revenue related to patient care services.

(c) The tax administrator shall make and promulgate such rules, regulations, and procedures not inconsistent with state law and fiscal procedures as he or she deems necessary for the proper administration of this section and to carry out the provisions, policy and purposes thereof.

SECTION 2. This article shall take effect on July 1, 1999 and shall apply to hospitals, as defined in Section 1, which are duly licensed on July 1, 1999. The licensing fee imposed by Section 1 shall be in addition to the inspection fee imposed by Section 23-17-38 and to any licensing fees previously imposed and collected in accordance with Section 23-17-38.1.

SECTION 1. Sections 42-11-15, 42-11-16, 42-11-17, 42-11-18, and 42-11-19 of the General Laws, in Chapter 42-11 entitled "Department of Administration" are hereby repealed:

{DEL 42-11-15. Fraud prevention unit - Appointment - Duties - Qualifications - Annual report. - DEL} {DEL (a) The director of administration shall establish within the state employees' workers' compensation unit of the department of administration, a workers' compensation fraud prevention unit whose members shall be in the unclassified service and whose responsibility it shall be to formulate an integrated state plan to reduce and prevent fraud arising out of claims made pursuant to the workers' compensation laws of this state. The plan shall include a fraud prevention telephone hotline. The workers' compensation fraud prevention unit shall submit an annual report to the director, the attorney general, the chief judge of the workers' compensation court and the general assembly fiscal advisory staff, on or before November 15 of each year, describing its activities and setting forth its findings, conclusions, and recommendations. DEL}

{DEL (b) To carry out the purposes of this title, the director, with the appropriation provided for this unit, is authorized to employ such persons as may be required, including the funding of an assistant attorney general position within the department of attorney general to assist the unit in any hearing, investigation, action or proceeding taken or done in carrying out the purposes of this section. The director is further authorized and directed to employ such investigative or other services as he or she deems reasonable and prudent to accomplish these purposes. DEL}

{DEL (c) The unit shall be funded by the workers' compensation administrative fund established in § 28-37-1, and such other funds or balances as the director may deem appropriate. Expenditures for any increase in service level shall be by agreement of the director, department of labor and training and the director, department of administration. DEL}

{DEL 42-11-16. Investigative powers of the fraud prevention unit. - DEL} {DEL The unit is authorized to investigate allegations of workers' compensation fraud and abuse. In furtherance of any investigation, the unit shall have the power to: DEL}

{DEL (a) Administrative subpoena. The unit may request, through an administrative subpoena, the attendance and testimony of witnesses and the production of books, records, and other evidence relevant to an investigation. The subpoena shall specify the time, date, and place where the witness is to respond. Within twenty (20) days after the service of the subpoena or at anytime before the return date specified therein, whichever period is shorter, the person served may file in a state superior court and serve upon the unit and the attorney general a civil petition for an order of the court modifying or setting aside the subpoena. The petition shall specify each ground upon which the petitioner is seeking relief. If a person neglects or refuses to comply with any request to provide testimony or produce books, records, and other evidence relevant to an investigation, the attorney general may petition the superior court for an order compelling such person to answer the request. Books, records, and other evidence obtained through an administrative subpoena that are not used in a court proceeding shall be destroyed as soon as practicable. DEL}

{DEL (b) Service of process. Unit investigators shall have the authority to serve criminal and civil process. DEL}

{DEL 42-11-17. Disclosure of information to the fraud prevention unit. - DEL} {DEL Any insurer, or agent authorized by the insurer to act on its behalf, having reason to believe that an insurance transaction may be fraudulent, shall send to the fraud prevention unit a report of the transaction and any additional information requested by the unit. The unit shall review the reports submitted and undertake further investigation in appropriate cases, as determined by the unit. DEL}

{DEL 42-11-18. Fraud prevention unit - Evidence/confidentiality. - DEL} {DEL The unit's documents, reports, or evidence relative to a workers' compensation investigation shall be privileged and not open to public inspection. Such documents, reports, and evidence shall not be subject to a subpoena duces tecum unless the unit consents, or a court determines the unit would not be jeopardized by compliance with the subpoena. DEL}

{DEL 42-11-19. Immunity. - DEL} {DEL In the absence of fraud, malice or bad faith, no insurer or agent authorized by the insurer to act on its behalf, employee of the unit, or person providing information to the unit, shall be subject to civil liability for damages as a result of any statement, report, or investigation made pursuant to chapter 11 of this title. Nothing herein shall interfere with any common law or statutory privilege or immunity. DEL}

SECTION 2. Chapter 42-16.1 of the General Laws entitled "Department of Labor and Training" is hereby amended by adding thereto the following sections:

{ADD 42-16.1-12. Fraud prevention unit - Appointment - Duties - Qualifications - Annual report. - ADD} {ADD (a) The director of the department of labor and training shall maintain within the workers' compensation unit of the department of labor and training, a workers' compensation fraud prevention unit whose members shall be in the unclassified service and whose responsibility it shall be to formulate an integrated state plan to reduce and prevent fraud arising out of claims made pursuant to the workers' compensation laws of this state and to conduct investigations as authorized by the director. The plan shall include a fraud prevention telephone hotline. The workers' compensation fraud prevention unit shall submit an annual report to the director, the attorney general, the chief judge of the workers' compensation court and the general assembly fiscal advisory staff, on or before November 15 of each year, describing its activities and setting forth its findings, conclusions, and recommendations. ADD}

{ADD (b) To carry out the purposes of this section, the director, is authorized to employ such persons as may be required, including an assistant attorney general position within the department of attorney general to assist the unit in any hearing, investigation, action or proceeding taken or done in carrying out the purposes of this section. The director is further authorized and directed to employ such investigative or other services as he or she deems reasonable and prudent to accomplish these purposes. ADD}

{ADD (c) The unit shall be funded by the workers' compensation administrative fund established in § 28-37-1, and such other funds or balances as the director may deem appropriate. ADD}

{ADD 42-16.1-13. Investigative powers of the fraud prevention unit. - ADD} {ADD The unit is authorized to investigate allegations of workers' compensation fraud and abuse. In furtherance of any investigation, the unit shall have the power to: ADD}

{ADD (a) Administrative subpoena. The unit may request, through an administrative subpoena, the attendance and testimony of witnesses and the production of books, records, and other evidence relevant to an investigation. The subpoena shall specify the time, date, and place where the witness is to respond. Within twenty (20) days after the service of the subpoena or at anytime before the return date specified therein, whichever period is shorter, the person served may file in a state superior court and serve upon the unit and the attorney general a civil petition for an order of the court modifying or setting aside the subpoena. The petition shall specify each ground upon which the petitioner is seeking relief. If a person neglects or refuses to comply with any request to provide testimony or produce books, records, and other evidence relevant to an investigation, the attorney general may petition the superior court for an order compelling such person to answer the request. Books, records, and other evidence obtained through an administrative subpoena that are not used in a court proceeding shall be destroyed as soon as practicable. ADD}

{ADD (b) Service of process. Unit investigators shall have the authority to serve criminal and civil process. ADD}

{ADD 42-16.1-14. Disclosure of information to the fraud prevention unit. - ADD} {ADD Any insurer, or agent authorized by the insurer to act on its behalf, having reason to believe that an insurance transaction may be fraudulent, shall send to the fraud prevention unit a report of the transaction and any additional information requested by the unit. The unit shall review the reports submitted and undertake further investigation in appropriate cases, as determined by the unit. ADD}

{ADD 42-16.1-15. Fraud prevention unit - Evidence/confidentiality. - ADD} {ADD The unit's documents, reports, or evidence relative to a workers' compensation investigation shall be privileged and not open to public inspection. Such documents, reports, and evidence shall not be subject to a subpoena duces tecum unless the unit consents, or a court determines the unit would not be jeopardized by compliance with the subpoena. ADD}

{ADD 42-16.1-16. Immunity. - ADD} {ADDIn the absence of fraud, malice or bad faith, no insurer or agent authorized by the insurer to act on its behalf, employee of the unit, or person providing information to the unit, shall be subject to civil liability for damages as a result of any statement, report, or investigation made pursuant to chapter 16.1 of this title. Nothing herein shall interfere with any common law or statutory privilege or immunity. ADD}

SECTION 3. Section 27-9-52 of the General Laws in Chapter 27-9 entitled "Casualty Insurance Rating" is hereby amended to read as follows:

27-9-52. Assessment for costs of rate filings, review, and pricing. - {DEL (a) DEL} The director of the department of business regulation may appoint actuaries and any other required administrative personnel to assist the director in the performance of his or her duties relating to the evaluation of rate filings, reviews, and pricing procedures of insurers when insuring against workers' compensation and employers' liability; the actuaries and other administrative personnel shall serve under the direction of the director and shall be removable at the director's pleasure. The director is further authorized to enter into contracts with consultants for the purpose of studying rate filings, reviews, and pricing procedures of insurers, and the administration and other aspects of the workers' compensation system. Insurance companies doing workers' compensation and employers' liability insurance in this state shall be assessed according to a schedule of their direct writings of workers' compensation and employers' liability insurance in this state to pay for the compensation of the actuaries, consultants, and other administrative personnel retained hereunder. {DEL The director shall determine the method of calculating that assessment by rules and regulations promulgated pursuant to chapter 35 of title 42. DEL} {ADD Such assessment shall comply with the provisions pursuant to chapter 37 of title 28 of the General Laws. ADD}

{DEL (b) The assessment provided for in this section shall not exceed one half of one percent (.5%) per annum of the insurer's direct writings of workers' compensation and employers' liability insurance in this state. DEL}

SECTION 4. Section 28-37-1 of the General Laws in Chapter 28-37 entitled "Workers' Compensation Administrative Fund" is hereby amended to read as follows:

28-37-1. Establishment - Sources - Administration. - (a) There is hereby established in the department of labor and training a special account to be known as the workers' compensation administrative account, an account within the general fund. This account, hereinafter referred to as the "workers' compensation administrative account", shall consist of payments made to it as hereinafter provided, or penalties paid pursuant to this chapter, and of all other moneys paid into and received by the fund, of property and securities acquired by and through the use of moneys belonging to the fund, and of interest earned upon the moneys belonging to the fund. All moneys in the fund shall be mingled and undivided. The fund shall be administered by the director of labor and training or his or her designee.

(b) The purposes for which this fund shall be used are as follows:

(1) To provide funds to the Dr. John E. Donley rehabilitation center for suitable structures, personnel, and equipment necessary for the rendering of rehabilitative services, including, but not limited to, physical therapy, psychotherapy, and occupational therapy to injured workers coming within the purview of chapters 29 - 38 of this title;

(2) To provide funds for all expenditures of the education unit created pursuant to section 42-16-4 and all expenditures of the workers' compensation fraud prevention unit created pursuant to section {DEL 42-11-15 DEL} {ADD 42-16.1-12 ADD};

(3) To provide funds for all expenditures of the workers' compensation court after July 1, 1989. The administrator of the fund shall on July 1st of each fiscal year transfer such funds as are reasonable and necessary to fund all expenditures of the workers' compensation court for the fiscal year from the administrative account, to a restricted receipt account to be established in the judicial department. The administrator of the workers' compensation court is hereby authorized to draw funds from the restricted receipt account for all court expenditures;

(4) To provide funds to the department of labor and training for all expenditures incurred in administering its responsibilities under chapters 29-38 of this title;

(5) To provide funds to the department of labor and training for all expenditures incurred in investigating and processing or otherwise administering its responsibilities regarding claims for benefits or payments under sections 28-35-20, 28-37-4, and 28-37-8;

(6) To provide funds to the department of labor and training for the maintenance and operation of a system of data collection as provided for in section 28-37-31. The director shall be authorized to purchase and/or lease equipment necessary to effectuate the purposes of section 28-37-31;

(7) To provide funds for loans to the state compensation insurance fund as provided in sections 27-7.2-19 and 27-7.2-20.1; and

(8) To provide funds for the payment or reimbursement of actual incremental costs of COLA increases mandated by section 28-33-17 respecting injuries occurring prior to September 1, 1990, in such amounts as the director, in his or her sole discretion, deems appropriate. These amounts may be paid out of the fund by order of the director and shall be made by order drawn on the general treasury to be charged against the fund.

(9) To provide funds to the workers' compensation advisory council created pursuant to the provisions of section 28-29-30 for expenditures to carry out its responsibilities.

{ADD (10) To provide funds to the department of business regulation relating to the evaluation of rate filings, reviews, and pricing procedures pursuant to the provisions of section 27-9-52. ADD}

SECTION 5. Section 28-37-13 of the General Laws in Chapter 28-37 entitled "Workers' Compensation Administrative Fund" is hereby amended to read as follows:

28-37-13. Payments into fund by insurers and employers. - (a) For the privilege of writing or renewing workers' compensation insurance or employer's liability insurance in this state, every mutual association or stock company so authorized, to be hereinafter referred to as "insurers", and for the privilege of being authorized, to make payments of workers' compensation directly to its employees, and every employer so authorized, to be hereinafter referred to as "certified employers", shall annually make the following payments to the workers' compensation administrative fund:

(1) In the case of an insurer, an amount measured by four and one-quarter percent (4 1/4%), or such other percentage of return as certified by the director pursuant to subsection (c) of the gross premiums received for workers' compensation insurance or employer's liability insurance written or renewed by it during the preceding calendar year on risks within this state, but not less than twenty-five dollars ($25.00); and

(2) In the case of a certified employer, an amount measured by four and one-quarter percent (4 1/4%), or such other percentage of return as certified by the director pursuant to subsection (c) of the premium which the employer would have had to pay to obtain workers' compensation insurance or employer's liability insurance for the preceding calendar year, but not less than twenty-five dollars ($25.00), which amount shall be determined by the director.

(b) Every certified employer and every insurer shall also pay into the workers' compensation administrative fund the sum of one thousand five hundred dollars ($1,500) for every case of injury causing death in which there is no person entitled to compensation.

(c) The director is hereby authorized to determine on or before {DEL March 15 DEL} {ADD July 15 ADD} of each year, {ADD except for the period ending June 30, 2000, when such determination shall be made on or before November 15, ADD} by experience or by other means, after taking into account projected expenditures for the current fiscal year and for the next fiscal year, what percentage of return, to be hereinafter referred to as the "assessment", is needed to provide sufficient funds, in conjunction with appropriations from the general fund, if any, to fulfill the purposes enumerated in section 28-37-1(b) and shall certify this assessment to the governor and the general assembly. {ADD Such assessment may be separately determined for insurers and for certified employers. ADD} The payments, due within sixty (60) days of notice each year pursuant to sections 28-37-15 and 28-37-16, shall be made based upon the assessment so certified. If the assessment certified in any given year is less than the assessment certified for the prior year, the percentage of reduction shall be applied to reduce pro rata employer payments and in accordance herewith, the director shall require the insurance carriers as described in subsection (a)(1) to reduce their premiums by a like percentage of premiums paid. If an insured thereafter cancels his or her policy or otherwise allows his or her policy to terminate, or the insured's policy is terminated, the insurance company shall make a pro rata cash refund not later than sixty (60) days after the reduction has been determined. The insurance company shall forthwith certify to the director that the premium reductions have been made.

(d) In recognition of the continued utilization of the workers' compensation system by insurers who have discontinued writing workers' compensation policies in the state, if any insurance company, deemed by the director of the department of business regulation to have been licensed on January 1, 1991 to write compensation policies, discontinues the issuance of workers' compensation policies, this company shall be and remain obligated to pay the workers' compensation administrative fund assessment for a period of six (6) years thereafter.

(2) In calculating the amount due by these insurance companies on the due date, as defined in subsection (c), of the year after which it discontinues writing policies in this state (the base year) the director of labor and training will calculate an amount equal to the assessment in effect on the last date the insurer issued workers' compensation policies multiplied by the gross premiums received for workers' compensation insurance or employers' liability insurance written or renewed by it during the base year on risks within this state, but not less than twenty-five dollars ($25.00) each year.

(3) The basis for the calculation of the assessment in each succeeding year shall be a reduction of the base year assessment by increments of sixteen and two-thirds percent (16 2/3%) per each succeeding year.

(e) All penalties collected for any violation under chapters 29 - 38 of this title shall be paid into this fund.

(f) Any employer, insurer, self-insurer, or group self-insurer who has not paid assessments or who is not current with payment of assessments into this fund shall not be permitted to place a claim against the fund. Reimbursement to any employer, insurer, self-insurer, or group self-insurer who is not current with payment of assessments into this fund shall be suspended forthwith as of the first date of arrearage.

(g) To be eligible to use any of the services funded by the workers' compensation administrative fund an employer, insurer, self-insurer, or group self-insurer shall pay a fee of one thousand dollars ($1,000) per claim, per month into the fund until the arrearage is paid in full in addition to any other interests or penalties.

SECTION 6. Section 28-37-16 of the General Laws in Chapter 28-37 entitled "Workers' Compensation Administrative Fund" is hereby amended to read as follows:

28-37-16. Returns and payments by certified employers. - Every certified employer shall, on or before {DEL January 15th DEL} {ADD May 15 ADD} of each year, {ADD except for the period ending June 30, 2000 when such return shall be due September 15, ADD} file with the director, in such form and containing such information as he or she may prescribe, a return under oath or affirmation signed by a duly authorized officer or agent of the company. The director shall thereupon determine the payment to be made by each employer under this chapter and shall mail a notice of the amount of this payment to each certified employer. The amount so determined shall be due and payable within sixty (60) days of notice.

SECTION 7. This article shall take effect on July 1, 1999.

SECTION 1. Section 1 of Chapter 11 of the 1999 Public Laws entitled "MAKING REVISED APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 1999" relating specifically to the appropriations for the Departments of Administration, Elderly Affairs, Health, Human Services, Corrections, Judiciary, Military Staff, Municipal Police Training Academy, and Rhode Island State Police is hereby amended to read as follows:

	Enacted	Revision	Revised
			Appropriation
Administration
General
General Revenues
General Revenues	40,439,413	(1,626,215)	38,813,198
Economic Development Corporation	7,935,194	(100,000)	7,835,194
Statewide Retiree Health Care Excess Payments	-	(870,700)	(870,700)
Elderly Affairs
General Revenue	19,345,174	(1,032,461)	18,312,713
Health
Disease Prevention and Control
General Revenue Funds Total	2,847,050	(137,845)	2,709,205
Human Services
Medical Benefits
General Revenue Funds Total	298,000,000	6,776,000	304,776,000
Federal Funds Total	346,992,000	14,121,000	361,113,000
Organ Transplant Fund Restricted Receipts	8,000	3,000	11,000
S.S.I General Revenue Funds Total	24,030,738	257,362	24,288,100
Temporary Assistance for Needy Families/Family Independence Program
General Revenue
Child Care	16,561,538	917,304	17,478,842
Temporary Assistance for Needy Families/Family
Independence Program	37,605,020	(353,935)	37,251,085
State Funded Programs
General Revenue
General Public Assistance	1,576,652	24,378	1,601,030
Food Stamp Replacement for Immigrants
- State Program	1,939,320	143,614	2,082,934
Weatherization One Time Payment	1,902,500	31,500	1,934,000
Corrections
Central Management General Revenue Funds Total	8,274,209	(279,310)	7,994,899
Parole Board General Revenue Funds Total	738,963	(5,002)	733,961
Institutional Corrections
Other Funds
Delaware - Fire Code and Safety Improvements	-	100,000	100,000
Delaware - Maximum Security Improvements	371,044	(100,000)	271,044
General Revenue Funds Total	125,507,986	(12,822,479)	112,685,507
Community Corrections
General Revenue Funds Total	8,093,844	(124,085)	7,969,759
Judiciary
Administrative Adjudication
Administrative Adjudication
General Revenue Funds	5,181,508	149,041	5,330,549
Military Staff
Delaware - Armory of Mounted Commands
Windows and HVAC System	261,134	(166,134)	95,000
Delaware - Armory of Mounted Commands Roofs	-	166,134	166,134
Municipal Police Training Academy
General Revenue Funds Total	585,268	(86,984)	498,284
Rhode Island State Police
Delaware - Headquarters Repairs/Renovations	604,054	(117,054)	487,000
Delaware - State Police Barracks and Training
Academy Repairs	-	117,054	117,054

SECTION 2. Statewide Retiree Health Care Charges. The state controller shall charge an assessment of 0.86 percent of salaries to general revenue funded payrolls each of the last five pay periods in FY 1999 to reflect retiree health care savings. The assessment shall be reflected as an expenditure credit to the "Statewide Retiree Health Care Excess Payments" appropriation line in the Department of Administration.

SECTION 3. Judicial year end balances for the Justice Link Program -- Reappropriation. -- Notwithstanding the provisions of section 35-3-15 of the General Laws in chapter 35-3 entitled "State Budget", all unexpended, and unencumbered balances of said revenue appropriations within the judicial budget, specifically for the Justice Link Program, whether general revenue, federal, or restricted receipt appropriations, at the end of fiscal year 1999 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the Justice Link Program originally mandated.

SECTION 4. This article is effective upon passage and is retroactive to May 6, 1999.

SECTION 1. Chapter 42-9 of the General Laws entitled "Department of Attorney General" is hereby amended by adding thereto the following section:

{ADD 42-9-18. Reports, Use of Experts, and Costs. -- ADD} {ADD Notwithstanding the provisions of section 23-17.14-13, the Department of Attorney General, may in effectuating the purpose of: ADD}

{ADD (1) the Hospital Conversion Act pursuant to chapter 23-17.14; or ADD}

{ADD (2) any non-profit hospital service corporation conversion; or ADD}

{ADD (3) non-profit medical service corporation conversion; or ADD}

{ADD (4) any health care conversion; ADD}

{ADD engage experts or consultants including but not limited to, actuaries, investment bankers, accountants, attorneys, or industry analysts. All copies of reports prepared by experts and consultants, and costs associated therewith, shall be made available to the transacting parties and to the public. All costs incurred under the provisions of this section shall be the responsibility of the one (1) or more transacting parties in an amount to be determined by the attorney general. ADD}

SECTION 2. This act shall take effect upon passage and shall apply to all future conversions and to all applications and conversions pending as of the effective date of this article.

SECTION 1. The title of Title 42 of the General Laws entitled "State Affairs and Government" is hereby amended to read as follows:

SECTION 2. Sections 42-26-1, 42-26-3, 42-26-12, 42-26-13, 42-26-13.1, 42-26-18 and 42-26-19.1 of the General Laws in Chapter 42-26 entitled "Governor's Justice Commission" are hereby amended to read as follows:

42-26-1. Short title. -- This chapter shall be known and may be cited as the "Rhode Island {DEL Governor's DEL} Justice Commission Act".

42-26-3. Commission created -- Composition. -- There is hereby created within the executive branch the Rhode Island {DEL governor's DEL} justice commission, hereinafter called the commission, which shall be under the jurisdiction of the governor. The commission shall consist of: (1) a criminal justice policy board, (2) a full-time administrator and staff, and (3) such permanent and ad hoc committees and task forces as the board deems necessary.

42-26-12. Termination or modification. -- The {DEL governor's DEL} {ADD Rhode Island ADD} justice commission shall annually submit a performance report to the governor and the general assembly. This report, and other relevant material shall be the basis for determining whether to continue the commission, modify the commission, or abolish the commission.

42-26-13. Committee created -- Purpose and composition. -- There is hereby created within the {DEL Governor's DEL} {ADD Rhode Island ADD} Justice Commission pursuant to the provisions of section 42-26-7 of this chapter the criminal justice oversight committee for the purpose of maintaining the secure facilities at the adult correctional institutions within their respective population capacities as established by court order, consent decree or otherwise. The criminal justice oversight committee (hereinafter referred to as the committee) shall consist of the following members who shall assemble no less than four (4) times annually or more often at the call of the chairperson or upon petition of a majority of its members:

(1) The presiding justice of the superior court;

(2) The chief judge of the district court;

(3) The attorney general;

(4) The public defender;

(5) The superintendent of state police;

(6) The director of the department of corrections;

(7) The chairman of the parole board;

(8) The executive director of the {DEL governor's DEL} {ADD Rhode Island ADD} justice commission;

(9) A member of the governor's staff selected by the governor;

(10) Four (4) members of the general assembly, one of whom shall be appointed by the speaker and one of whom shall be appointed by the senate majority leader, one of whom shall be appointed by the house minority leader and one of whom shall be appointed by the senate minority leader.

(11) A qualified elector of this state who shall be appointed by the governor and designated as chairperson of the committee.

(12) A member of the victim's rights group, appointed by the Speaker of the House.

Each member of the committee may appoint a permanent designee to attend committee meetings in his/her absence. A quorum at meetings of the committee shall consist of a majority of its current membership.

42-26-13.1. Staff, facilities and supplies. -- The executive director of the {DEL governor's DEL} {ADD Rhode Island ADD} justice commission shall provide the committee with such staff, facilities, equipment and supplies necessary for its operation and maintenance.

42-26-18. Gang violence prevention advisory committee. -- (a) There is hereby established in the {DEL Governors DEL} {ADD Rhode Island ADD} Justice Commission, the Gang Violence Prevention Advisory Committee. The committee shall be composed of the following members:

(1) The Executive Director of the {DEL Governors DEL} {ADD Rhode Island ADD} Justice Commission or designee.

(2) The Attorney General or designee.

(3) The Director of the Department of Corrections or designee.

(4) The Presiding Justice of Superior Court or designee.

(5) The Chief Judge of Family Court or designee.

(6) The Chief Judge of District Court or designee.

(7) The President of the Rhode Island Police Chiefs Association or designee.

(8) One (1) probation officer who specializes in juvenile probation.

(9) The Public Defender or designee.

(10) One (1) law enforcement official who specializes in gang related investigations selected by the police chiefs association.

(11) Two (2) representatives of community board organizations selected by the Speaker of the House of Representatives.

(12) One (1) member of the public selected by the Speaker of the House of Representatives.

(13) One (1) member of the public selected by the Majority Leader in the Senate.

(14) The Director of the Department of Employment and Training or designee.

(15) The Commissioner of Elementary and Secondary Education or designee.

(b) The Gang Violence Prevention Advisory Committee shall coordinate, review, propose and oversee gang prevention, intervention and suppression programs on a state level. The committee shall also coordinate with the {DEL Governors DEL} {ADD Rhode Island ADD} Justice Commission in efforts to obtain federal funds, grants or other appropriations necessary and useful to carry out the purpose of this section.

(c) The Executive Director of the {DEL Governor's DEL} {ADD Rhode Island ADD} Justice Commission shall convene the committees first meeting. A chairperson of the committee shall be elected by a majority vote of the members. The committee shall meet no less than three (3) times annually. The {DEL Governors DEL} {ADD Rhode Island ADD} Justice Commission shall provide staff and financing as necessary.

(d) The committee shall prepare an annual report to the general assembly describing the coordination of the programs authorized in paragraph (b) above. In addition the committee may make recommendations regarding legislative strategies for improvement of those programs. The report with recommendations may be incorporated into any annual report filed by the {DEL Governor's DEL} {ADD Rhode Island ADD} Justice Commission to the general assembly.

42-26-19.1. After School Alternative Program -- Purpose -- Duration. -- (a) There is hereby created within the {DEL Governors DEL} {ADD Rhode Island ADD} Justice Commission, a pilot program known as the "After School Alternative Program" (ASAP). The establishment of the pilot program pursuant to this section shall be contingent upon the availability and receipt of federal and/or private funding for this purpose. The goal of the pilot program shall be to reduce gang activity and drug-related crime in and near the targeted schools, businesses, and community sites. This shall be accomplished by coordinating the efforts of community-based organizations, public schools, law enforcement officials, parents, and business leaders in participating communities to prevent the illicit activities of current and potential gang members and drug users by making alternative activities available. These activities may be provided at school or community sites, and may include:

(1) Recreational, arts, crafts, computer or academic tutorial programs.

(2) Job counseling and training, with the participation of community business representatives.

(3) Presentations by law enforcement officials, and informal get-togethers.

(4) Group and individual (as needed) drug and/or gang counseling.

(5) Community awareness presentations.

(b) A Rhode Island community may elect to participate in the pilot project established pursuant to subdivision (a) by establishing an ASAP program. The community may be any designated area that contains up to two (2) public high schools and feeder schools, as well as active business enterprises and a viable local community-based organization.

(c) The community shall submit its program to the Gang Violence Prevention Advisory Committee for review. The committee upon receipt of all programs from applying communities shall select one (1) project to receive funding. The project selected shall receive funding for one calendar year from the date of selection. All rules and regulations for application, review and award shall be promulgated by the committee.

(d) This section shall remain operative only until June 30, 2000 and is repealed on that date unless a later enacted statute extends that date.

SECTION 2. This article shall take effect July 1, 1999.

SECTION 1. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor Fuel Tax" is hereby amended to read as follows:

31-36-20. Disposition of proceeds. -- (a) Notwithstanding any other provision of law to the contrary, all moneys paid into the general treasury under the provisions of this chapter or chapter 37 of this title shall be applied to and held in a separate fund and be deposited in such depositories as may be selected by the general treasurer to the credit of the fund, which fund shall be known as the Intermodal Surface Transportation Fund; provided, however, that for fiscal year beginning July 1, {DEL 1998 DEL} {ADD 1999 ADD} and thereafter, {DELfive cents ($.05) DEL} {ADD five and one half cents ($0.055) ADD} per gallon of the tax imposed and accruing for the liability under the provisions of section 31-36-7, less refunds and credits, shall be transferred to the Rhode Island public transit authority as provided under section 39-18-21, and one cent ($.01) per gallon shall be transferred to the Elderly/Disabled Transportation Program of the department of elderly affairs, and the remaining cents per gallon shall be available for general revenue as determined by the following schedule:

{DEL (1) For the fiscal year 1998, seven cents shall be available for general revenue. DEL}

{DEL (2) For the fiscal year 1999, four and one half cents shall be available for general revenue. DEL}

{DEL (3) DEL} {ADD (1) ADD} For the fiscal year 2000, three and one half cents shall be available for general revenue.

{DEL (4) DEL} {ADD (2) ADD} For the fiscal year 2001, two {DEL and one half DEL} cents shall be available for general revenue.

{DEL (5) DEL} {ADD (3) ADD} For the fiscal year 2002, one {DEL and one half cents DEL} {ADD cent ADD} shall be available for general revenue.

{DEL (6) For the fiscal year 2003, one half cent shall be available for general revenue. DEL}

{DEL (7) DEL} {ADD (4) ADD} For the fiscal year {DEL 2004 DEL} {ADD 2003 ADD}, no funding shall be available for general revenue.

All deposits and transfers of funds made by the tax administrator under this section including those to the Rhode Island public transit authority, the department of elderly affairs and the general fund, shall be made within twenty-four (24) hours of receipt or previous deposit of the funds in question.

(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund shall be dedicated to the Rhode Island department of transportation, subject to annual appropriation by the general assembly. The director of the department 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 such fund together with a planned budget for proposed expenditures for the succeeding fiscal year in compliance with sections 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sum of such portion thereof as may be required from time to time upon receipt by him or her 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 from time to time, with the approval of the governor and the director of administration, in anticipation of the receipts of monies enumerated in section 31-36-20 to advance sums to the fund, for the purposes specified in section 31-36-20, any funds of the state not specifically held for any particular purpose, provided, however, that all such advances made to the fund shall be returned to the general fund forthwith upon the receipt by such fund of proceeds resulting from the receipt of monies to the extent of such advances.

SECTION 2. This article shall take effect July 1, 1999.

SECTION 1. Sections 42-64.3-6 and 42-64.3-10 of the General Laws in Chapter 42-64.3 entitled "Distressed Areas Economic Revitalization Act" are hereby amended to read as follows:

42-64.3-6. Business tax credits. -- A qualified business in an enterprise zone is allowed a credit against the tax imposed pursuant to chapters 11, 13 (except the taxation of tangible personal property under section44-13-13), 14, 17, and 30 of title 44:

(1) A credit equal to fifty percent (50%) of the total amount of wages paid to those enterprise job employees comprising the five percent (5%) new jobs referenced in {DEL section 42-64.3-3(d) DEL} {ADD section 42-64.3-3(4)(i)(A) ADD}. The wages subject to the credit shall be reduced by any direct state or federal wage assistance paid to employers for the employee(s) in the taxable year. The maximum credit allowed per taxable year under the provisions of this subsection shall be ten thousand dollars ($10,000), per employee. A taxpayer who takes this business tax credit shall not be eligible for the resident business owner modification pursuant to section 42-64.3-7.

(2) A credit equal to seventy five percent (75%) of the total amount of wages paid to those enterprise job employees who are domiciliaries of an enterprise zone comprising the five percent (5%) new jobs referenced in {DEL section 42-64.3-3(d) DEL} {ADD section 42-64.3-3(4)(i)(A) ADD}. The wages subject to the credit shall be reduced by any direct state or federal wage assistance in the taxable year. The maximum credit allowed per taxable year under the provisions of this subsection shall be fifteen thousand dollars ($15,000) per employee. A taxpayer who takes this business tax credit is not eligible for the resident business owner modification. The council shall promulgate appropriate rules to certify that the enterprise job employees are domiciliaries of an enterprise zone and shall advise the qualified business and the tax administrator. A taxpayer taking a credit for employees pursuant to this subsection {DEL (b) DEL} {ADD (2) ADD} shall not be entitled to a credit pursuant to subsection {DEL (a) DEL} {ADD (1) ADD} for the employees.

(3) {DEL Any tax credit provided in subdivision (1) shall not offset any tax liability in taxable years other than the year in which the taxpayer qualifies for the credit. The DEL} {ADD Any tax ADD} credit {ADD as hereinbefore provided in subsection (1) or (2) ADD} shall not reduce the tax below the minimum tax. Fiscal year taxpayers must claim the tax credit in the year into which the December 31st of the certification year falls. The credit shall be used to offset tax liability pursuant to the provisions of either chapters 11, 13, 14, 17, or 30 of title 44, but not more than one chapter.

(4) In the case of a corporation, the credit allowed under this section is only allowed against the tax of that 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.

(5) In the case of multiple business owners, the credit provided in {DEL subdivision DEL} {ADD subsection ADD} (1) {ADD or (2) ADD} is apportioned according to the ownership interests of the qualified business.

{ADD (6) The tax credits established pursuant to this section may be carried forward for a period of three (3) years if in each of the three (3) calendar years a business which has qualified for tax credits hereunder (a) does not reduce the number of its employees from the last Effective Date of Certification; (b) obtains certificates of good standing from the Rhode Island Division of Taxation, the corporations division of the Rhode Island Secretary of State and the appropriate municipal tax collector; (c) provides the Council an affidavit stating under oath that such business has not within the preceding twelve (12) months changed its legal status for the purpose of gaining favorable treatment under the provisions of chapter 64.3 of this title; and (d) meets any other requirements as may be established by the Council in its rules and regulations. ADD}

42-64.3-10. Additional rules and regulations. -- The state tax administrator {DEL of the state DEL} shall promulgate appropriate rules or regulations to insure the proper administration of the taxation provisions of this chapter. The council shall promulgate appropriate rules or regulations to certify qualified businesses and {DEL annually establish income requirements to certify workers DEL} {ADD to determine that a business is entitled to carry forward tax credits as provided in section 42-64.3-6 ADD} and shall advise the tax administrator {ADD and taxpayers ADD} of these rules and regulations and shall promulgate any other rules and regulations that may be necessary to carry out the provisions of this chapter.

SECTION 2. This act shall take effect upon passage and becomes effective with credits from the 2000 certification year.

SECTION 1. Section 40-8-3 of the General Laws in Chapter 40-8 entitled "Medical Assistance" is hereby amended to read as follows:

40-8-3. Eligibility requirements. -- Medical care benefits shall be provided under this chapter to at least any person (1) who has attained the age of sixty-five (65) years, or (2) who has no vision or whose vision is so defective as to prevent performance of ordinary activities for which eyesight is essential, or (3) who is at least eighteen (18) years of age and who is permanently and totally disabled, or (4) who is under the age of eighteen (18) years, and who has been deprived of parental support or care by reason of the death, continued absence from the home, unemployment or physical or mental incapacity of a parent (called hereafter "dependent child") and who is living with a relative in a place of residence maintained by one or more of such relatives as his or her or their own home, or is in foster boarding care, or (5) the relative as defined in subsection (8) of section 40-8-2, with whom any such dependent child is living; provided such person:

(i) Is a resident of this state; and

(ii) Is not receiving public assistance under the provisions of section 40-5.1-9(b) or section40-6-27; and

(iii) Is not an inmate of a public institution other than as a patient in a medical institution; and

(iv) Is not a patient in an institution for tuberculosis or mental disease, unless the person has attained the age of sixty-five (65) years; provided, however, that this clause shall become void and of no effect if and when legislation enacted by the congress of the United States shall become effective providing for payments for medical care on behalf of persons who have not attained the age of sixty-five (65) years who are patients in an institution for tuberculosis or mental disease; and

(v) Has insufficient income and resources. The department shall establish income and resource rules, regulations, and limits in accordance with title XIX of the federal Social Security Act, 42 U.S.C. section 1396 et seq., as applicable to the medically needy only applicants and recipients. The income limits established by the department must be more than the {ADD AFDC ADD}standard {DEL as provided in section 40-5.1-9 DEL} {ADD in effect on July 16, 1996 under the Rhode Island state plan approved under part A of Title IV of the federal Social Security Act ADD} but shall not be more than one hundred and thirty-three and one-third percent (1331/3%) of the {ADD AFDC ADD} standard {DEL as provided in section 40-5.1-9. DEL} {ADD in effect on July 16, 1996 under the Rhode Island state plan approved under part A of Title IV of the federal Social Security Act; provided, however that subject to the maximum percentage increase allowable under section 1931(b)(2)(B), the department shall increase the income limits on July 1, 1999 by six and six tenths percent (6.6%), and on January 1, of each year commencing in the year 2000 by a percentage equal to the annual federal adjustment percentage as determined under the provisions of Title XVI of the federal Social Security Act. ADD} The department shall establish resource limits equal to two thousand dollars ($2,000) for an individual and three thousand dollars ($3,000) for a family. Provided, however, the department shall apply to the United States department of health and human services for a waiver relating to application of the reduced resource limit, and subject to the granting of the waiver by the secretary of the United States department of health and human services, the resource limit shall be applied to all applicants who (A) become eligible for benefits under this chapter on or after the effective date of this amendment and (B) who were not receiving benefits under this chapter prior to July 1, 1993. In the event the secretary does not approve the waiver request, the current department regulations relating to resource limits shall remain in effect for all eligible beneficiaries.

For the purposes of this subsection a vehicle necessary to transport a family member with a disability, where the vehicle is specially equipped to meet the specific needs of the person with a disability or if the vehicle is a special type of vehicle that makes it possible to transport the person with the disability shall not be counted as resources of the applicants and recipients.

SECTION 2. This article shall take effect July 1, 1999.

SECTION 1. Section 40-8.3-3 of the General Laws in chapter 40-8.3 entitled "Uncompensated Care" is hereby amended to read as follows:

40-8.3-3. Implementation. -- For the fiscal year commencing on October 1, {DEL 1998 DEL} {ADD 1999 ADD} and ending September 30, {DEL 1999 DEL} {ADD 2000 ADD}, each participating hospital shall be paid by the department of human services on or before {DEL October 29, 1998 DEL} {ADD October 28, 1999 ADD}, an annual disproportionate share payment equal to the lesser of (1) the hospital's uncompensated care costs or (2) a percentage equal to a minimum of two and six-tenths percent (2.6%) of the dollar amount of all chargeable services in the hospital's base year adjusted by the uncompensated care index.

SECTION 2. This article shall take effect July 1, 1999.

SECTION 1. Section 39-3-11.2 of the General Laws in Chapter 39-3 entitled "Regulatory Powers of Administration" is hereby amended to read as follows:

39-3-11.2. Interim rates -- Notwithstanding the provisions of titles 23 and 39, the municipal tipping fee charged by the resource recovery corporation shall be thirty-two dollars ($32.00) per ton {DEL July 1, 1998 to June 30, 1999 DEL} {ADD from July 1, 1999 to June 30, 2000 ADD}.

SECTION 2. This article shall take effect July 1, 1999.

SECTION 1. Section 42-12.3-4 of the General Laws in Chapter 42-12.3 entitled "Health Care for Children and Pregnant Women" is hereby amended to read as follows:

42-12.3-4. RIte track. -- There is hereby established a payor of last resort program for comprehensive health care for children until they reach {DEL eighteen (18) DEL} {ADD nineteen (19) ADD} years of age, to be known as "RIte track". The department of human services is hereby authorized to amend its title XIX state plan pursuant to title XIX [42 U.S.C. section 1396 et seq.] of the federal social security act to provide for expanded medicaid coverage through expanded family income disregards for children, until they reach {DEL eighteen (18) DEL} {ADD nineteen (19) ADD} years of age, whose family income levels are up to two hundred fifty percent (250%) of the federal poverty level; provided, however, that health care coverage under this section shall also be provided without regard to the availability of federal financial participation to a non-citizen child lawfully residing in the United States provided such child satisfies all other eligibility requirements. The department is further authorized to promulgate any regulations necessary, and in accord with title XIX [42 U.S.C. section 1396 et seq.] of the federal social security act to implement said state plan amendment. For those children who lack health insurance, and whose family incomes are in excess of two hundred fifty percent (250%) of the federal poverty level, the department of human services shall promulgate necessary regulations to implement the program. The department of human services is further directed to ascertain and promulgate the scope of services that will be available to those children whose family income exceeds the maximum family income specified in the approved title XIX [42 U.S.C. section 1396 et seq.] state plan amendment.

SECTION 2. Section 42-12.3-16 of the General Laws in Chapter 42-12.3 entitled "Health Care for Children and Pregnant Women" is hereby repealed in its entirety.

{DEL 42-12.3-16. Resource limit. -- DEL} {DELNotwithstanding any other provisions of the general laws to the contrary, no child or pregnant woman whose available family liquid resources are greater than or equal to ten thousand dollars ($10,000) shall be eligible for health care benefits under this chapter, under section 40-6-7.1 or under any medical assistance state plan option under Title XIX of the federal Social Security Act [42 U.S.C. section 1396 et seq.]. The department of human services is hereby authorized and directed to submit to the United States Department of Health and Human Services an amendment to the "RIte Care" waiver project number 11-W-0004/1-01 to request federal approval of this resource limit. The department shall implement this resource limit only upon receipt of federal approval of the amended waiver. DEL}

SECTION 3. This article shall take effect upon passage.

SECTION 1. For the fiscal year ending June 30, {DEL 1999 DEL}, {ADD 2000 ADD}, the compensation paid to commissioners and board members for attendance at board meetings of the following state agencies and autonomous and semi-autonomous boards and commissions authorized under the General Laws of this state is suspended. Reimbursement for travel costs to said meetings will continue to be allowable in accordance with existing state travel regulations.

	R.I.G.L.	Compensation
Board/Commission Title Reference (per Meeting)
Liquor Control	3-3-4	25.00
Accountancy	5-3-4	30.00
Electricians	5-6-27	25.00
Engineers	5-8-5	25.00
Land Surveyors	5-8.1-6	25.00
Hairdressers, Cosmeticians and Manicurists	5-10-4	25.00
Pharmacy	5-19-5	500.00 yearly
Real Estate Appraisers	5-20.7-4	75.00
Real Estate Commission	5-20.5-12	25.00
Plumbing Examiners	5-20-7	25.00
Professional Regulation	5-26-5	20.00/40.00
Barber Examiners	5-27-3	25.00
Chiropractics	5-30-15	10.00
Examiners in Dentistry	5-31.1-2	100.00
Nursing	5-34-8	50.00
Health Services Council	23-17-14.2	50.00
Optometrists	5-35-3	30.00
Medical Licensure & Discipline	5-37-1.1	100.00
Hearing Aid Dealers & Fitters	5-49-15	25.00
Landscape Architects	5-51-2	25.00
Board of Governors for Higher Education	16-59-1	50.00/75.00
Board of Regents	16-60-1	75.00
Public Telecommunications Authority	16-61-4	50.00/75.00
Legislative Oversight	22-14-1	50.00
Building Code Commission	23-27.3-108.2.2	50.00/75.00
Fire Appeal and Review	23-28.3-3	50.00/75.00
Pipefitters and Refrigeration Technicians	28-27-3	25.00
Apprenticeship Training	28-45-2	45.00
Commission for Human Rights	28-5.1-1	50.00
Motor Dealers License	31-5-4	40.00
Medical Advisory -- Motor Vehicles	31-10-44	50.00
Investment	35-10-7	75.00
Ethics	36-14-8	100.00
Racing and Athletics	41-2-2	25.00
Pilotage	46-9.1-3	50.00
Water Resources Board	46-15-5	50.00/75.00
Coastal Resources Management	46-23-5	50.00/75.00
Narragansett Bay Water Quality Distributors	46-25-8	50.00
Vehicle Value Commission	44-34-11	50.00
Police and Fire Relief	45-19-5	25.00

SECTION 2. Notwithstanding the boards and commissions identified in Section 1 it is the intent of this article to suspend the compensation paid to members of all state agencies and autonomous and semi-autonomous boards and commissions authorized compensation under the General Laws of Rhode Island, except for the Medical Advisory Board of the Workers' Compensation Court pursuant to Chapter 28-30-22 of the general laws.

SECTION 3. This article shall take effect July 1, 1999.

SECTION 1. The Department of Mental Health, Retardation, and Hospitals shall report quarterly to the General Assembly with respect to eligible developmentally disabled adults. Such reports shall include summary information as well as profiles of the service demand/request for eligible adults meeting the state statutory definition for services from the Division of Developmental Disabilities as determined by the Division, including age, medicaid eligibility and agency selection/placement with a listing of the services provided. The report shall be filed with the chairperson of the House and Senate Finance Committees with copies to the respective fiscal advisors. Reports shall be submitted within thirty days of the end of each calendar quarter.

SECTION 2. This article shall take effect upon passage.

SECTION 1. Chapter 42-12 of the General Laws entitled "Department of Human Services" is hereby amended by adding thereto the following section:

{ADD 42-12-27. Annual report of Statewide Medicaid Expenditures -- Health and Social Outcomes. -- ADD} {ADD (a) The governor and the general assembly hereby find and declare that statewide Medicaid program expenditures were approximately $1.037 billion dollars during state fiscal year 1998, and accounted for nearly twenty-eight percent (28%) of state's total annual expenditures of $3.725 billion in fiscal year 1998, and are projected to continue to be a significant percentage of the total annual state budget; that those expenditures have a significant impact on the health, educational and social fabric of the state; that although the department of human services has been designated as the single state agency responsible to the federal government and the state for the effective and efficient administration and supervision of the state's Medicaid program, as well as to provide assurances of statewide accessibility to a comprehensive system of high-quality health care services, only two-thirds (2/3) of total Medicaid expenditures is appropriated to and directly administered by the department of human services, while the remaining one-third (1/3) is appropriated to other departments within state government. The governor and the general assembly further recognize that policy makers may not have the benefit of a comprehensive and consolidated depiction of the total impact of the Medicaid program on Rhode Island children and families, adults with disabilities and the elderly; and, that policy makers should require a higher level of assurance that the funds are used to enhance health service accessibility, delivery and outcomes, as well as to improve the fiscal integrity and accountability for Medicaid expenditures. ADD}

{ADD (b) The governor and the general assembly further find and declare that a well-coordinated comprehensive financing and service delivery system that specifically addresses the interfaces between other health, social, and educational programs, including those administered at the municipal and community level, is essential. ADD}

{ADD (c) Wherefore, the governor and general assembly direct the director of the department of human services, as the administrator of the single state agency for the Medicaid program in Rhode Island, to issue a report to the governor, to the general assembly and to the caseload estimating conference established under section 15-17-1, no later than March 31, 2000, and by March 31st of each year thereafter, of expenditures and outcomes over time for the Medicaid program as a whole, including but not limited to the following information: ADD}

{ADD (1) expenditures under Titles XIX and XXI of the Social Security Act, as amended; ADD}

{ADD (2) expenditures and outcomes by population and sub-population served (e.g. families with children, adults with disabilities, and the elderly); ADD}

{ADD (3) expenditures and outcomes by each state department or other municipal or public entity receiving federal reimbursement under Titles XIX and XXI, and ADD}

{ADD (4) expenditures and outcomes by type of service and/or service provider. ADD}

{ADD (d) In order to assist the department of human services to prepare the annual report referred to in (c) above, all departments of state government as well as local governments and school departments shall timely provide such information and analysis relating to Medicaid expenditures and outcomes as may from time to time be requested by the director of the department of human services. ADD}

SECTION 2. This article shall take effect July 1, 1999.

SECTION 1. Section 35-4-23 of the General Laws in Chapter 35-4 entitled "State Funds" is hereby amended as follows:

35-4-23 {DEL Delaware plan capital accounts. -- DEL} {ADD Rhode Island capital plan funds. -- ADD} From the proceeds of any receipts transferred pursuant to the provisions of the Rhode Island Constitution, the state controller is authorized to create an account or accounts within the bond capital fund. These accounts shall be used to record expenditures from these receipts, which are authorized to be spent with the approval of the governor. Certain of these funds may be allocated to agencies for the purpose of completing preliminary planning studies for proposed projects. In the event the project is completed with funds appropriated from another source, the preliminary planning funds shall be returned to the bond capital fund and shall be placed in a revolving account for future reallocation. The intended use of the {DELDelaware plan capital accountsDEL} Rhode Island capital plan funds shall be determined through the annual capital and operating budget process.

SECTION 2. Section 35-3-7.2 of the General Laws in Chapter 35-3 entitled "State Budget" is hereby amended to read as follows:

35-3-7.2. Budget officer as capital development officer. -- The budget officer shall be a capital development program officer who shall be responsible for:

(1) The review of all capital development requests submitted by the various state departments, as set forth in {DEL title DEL} {ADD chapter ADD} 6 of title 42, which shall include all independent boards and commissions and the capital development plans of the Narragansett Bay Commission, Rhode Island Clean Water Finance Agency, the Lottery Commission, and all other public corporations, as defined in title 35, chapter 18; provided, that, except as provided for in this section, nothing in this section shall be construed to limit the powers of the board of governors for higher education as outlined in chapter 59 of title 16. Capital development requests and plans shall be submitted in such form, with such explanation, in such number of copies, and by such date as the budget officer may require. Copies shall also be provided directly to the house fiscal advisor and the senate fiscal advisor.

(2) Preparation of a capital budget which shall specify which capital items are proposed for presentation to the electorate at the next general election.

(3) The activities which will provide capital development planning and develop criteria which can be used to determine appropriate levels of bonded indebtedness.

(4) Acting as chairperson of the capital development planning and oversight commission which is to be appointed by the governor. The commission, in addition to recommending to the governor the biennial capital budget, shall implement a long range capital development planning process {DEL . DEL} {ADD and shall be responsible for the development of an inventory of state assets to determine the need and prioritization of capital improvements. ADD}

(5) Working with the board of governors for higher education in the development by the board of that portion of the board's capital development program involving annual general revenues.

SECTION 3. Section 35-3-21 of the General Laws in Chapter 35-3 entitled "State Budget" is hereby repealed in it entirety.

{DEL 35-3-21 Public facilities asset protection fund account. - DEL}{DEL (a) There is hereby created within the general fund a public facilities asset protection fund account, which shall be administered by the state controller and which shall be used solely for the purpose of providing such sums as maybe required to fund repairs and capital improvements to state facilities in accordance with chapter 8.1 of title 37. DEL}

{DEL (b) Twenty percent (20%) of the amount to be transferred annually to the public facilities asset protection fund account under subsection (c) shall be transferred annually to the board of governors for higher education for the purpose of providing such sums as may be required to fund repairs and capital improvements to higher education facilities, and to purchase technological equipment. If these sums are not used or encumbered exclusively to fund repairs and capital improvements or to purchase technological equipment, then they shall revert to the public facilities asset protection fund account. DEL}

{DEL (c) At the end of each fiscal year following the completion of the post audit of the financial transactions of the state by the state auditor general but prior to the issuance of his or her final audit report as set forth in 22-13-4, the state controller shall transfer to the public facilities asset protection fund account forty percent (40%) of the amount payable into the general revenue fund pursuant to section 42-61-15 for each fiscal year; provided, that no amount shall be transferred unless the full amount to be transferred pursuant to section 35-3-20 has been transferred and in no event shall a transfer pursuant to this section serve to reduce the state's general fund available fund balance below zero. DEL}

{DEL (d) In carrying out the provisions of subsection (c), the state controller shall initially, at the fiscal year opening, transfer the amount identified as that fiscal year's projected estimate; the transfer shall be adjusted at the end of the fiscal year in order to conform to the requirements of subsection (c). DEL}

SECTION 4. Section 37-8.1-1, 37-8.1-2 and 37-8.1-3 of the General Laws in Chapter 37-8.1 entitled "Public Facilities Asset Protection" are hereby repealed in their entirety:

{DEL 37-8.1-1. Public facilities asset protection committee. - DEL}{DEL (a) There is hereby established a public facilities asset protection committee, consisting of the director of administration who shall serve as chairperson, the associate director for administration and finance of the department of administration, the associate director for planning of the department of administration, the state building code commissioner, the budget officer, the fiscal advisor to the house finance committee, two (2) members of the house of representatives, one from each party, appointed by the speaker, two (2) members from the senate, one from each party, appointed by the majority leader, and a public member. Ex-officio members may appoint a designee to serve in their place. The public member shall be appointed by the governor, to serve at his or her pleasure. The public member shall be a person experienced in architecture, engineering, or building construction, and may be paid $25 for each meeting of the committee attended, not to exceed $1,200 annually. The committee shall meet at the call of the chairperson. A quorum must be present. Six (6) members, one being the chairperson, shall constitute a quorum. DEL}

{DEL 37-8.1-2. Functions of committee. - DEL} {DEL(a) The committee shall maintain an up-to-date inventory of state owned buildings and shall establish a priority listing of required repairs and capital improvements to the buildings. The committee shall approve expenditures from the asset protection fund established by this chapter for such repairs and capital improvements to state owned facilities as it shall authorize, and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums of such portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers from the chairperson of the public facilities asset protection committee. DEL}

{DEL 37-8.1-3. Public facilities asset protection fund. - DEL} {DEL(a) There is hereby established within the department of administration a public facilities asset protection fund. The purpose of the fund shall be to provide money to carry out the repairs and capital improvements to state owned facilities, free public libraries of the cities and towns, the Stonebridge fishing pier, and associated administrative costs of the committee including architectural and engineering services as well as the twenty-five dollar ($25.00) per meeting costs of the public member, authorized by the public facilities asset protection committee pursuant to this chapter. DEL}

{DEL (b) The fund shall be funded by the money deposited into the asset protection fund account established by section 35-3-21. The fund shall maintain a minimum balance of one hundred thousand dollars ($100,000) at all times. DEL}

{DEL (c) The director of administration is further authorized to issue such rules and regulations as may be necessary to implement this section. DEL}

SECTION 5. The Budget Officer shall prepare and transmit a report prepared by the Capital Development Planning and Oversight Commission on the long-term plans for Zambarano Hospital. The report shall include an inventory of existing assets, options for use of the facility, and costs and actions required for each option. The report shall include the preferred option and a timetable for accomplishing that option. The report shall be transmitted to the Chairs of the House and Senate Finance Committees no later than March 1, 2001.

SECTION 6. This article shall take effect July 1, 1999.

SECTION 1. Section 40-8-19 of the General Laws in Chapter 40-8 entitled "Medical Assistance" is hereby amended to read as follows:

40-8-19. Rates of payment to nursing facilities. -- (a) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of title 23, and certified to participate in the title XIX medicaid program for services rendered to medicaid-eligible residents, shall be reasonable and adequate to meet the costs which must be incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. section 1396a(a)(13). The department of human services shall promulgate or modify principles of reimbursement to be consistent with the provisions of this section and title XIX, 42 U.S.C. 1396 et seq., of the Social Security Act.

(b) For the period ending January 1, 1991 through June 30, 1993, the rates paid by the Rhode Island medical assistance program for services provided to program beneficiaries in nursing facilities licensed pursuant to chapter 17 of title 23, shall have been based on the costs calculated in accordance with facility base years established under the Principles of Reimbursement, TN No. 92-17, adjusted by the percentage change in the national nursing home input price index granted on January 1 of each year subsequent to such base years, except that no such adjustment shall be made on January 1, 1994 and that facilities commencing operation (including total replacement facilities) subsequent to calendar year 1991 shall have had their first six (6) months of operation as their base period.

(1) Effective July 1, 1993, allowable costs shall be divided into the following seven (7) cost centers:

(i) Fixed property, which will include real estate, personal property, and fire district taxes;

(ii) Other property related, which will include interest, rent/lease, amortization of leasehold improvements, and depreciation;

(iii) Management related, which will include all salaries and personnel fees for administrators, managers, officers/owners, other administrative salaries, employer's share of health benefits for such personnel, other fringe benefits for such personnel, home office/central services, computer payroll and data processing charges, accounting/auditing fees, legal services, payroll taxes for such personnel, workers' compensation, group life, pension and retirement insurance for such personnel, utilization review, consultants, pharmacist salaries and services, and other salaries and fees exclusive of salaries and purchased services enumerated in the labor related cost center and of repairs; medical director salaries/fees; physician salaries/fees; salaries;

(iv) Energy, which will include fuel, gas, and electricity;

(v) OBRA 87, which will include reasonable costs of the following expense elements: medical director; physician salaries/fees, social worker salaries/fees; recreational activities salaries; quality of life; scope of services and activities under plan of care; resident assessment; provisions of services and activities; in-service education/training; physician supervision and clinical records; social services; general rights; transfer and discharge rights; access and visitation rights; equal access to quality care; admission policy; protection of resident funds; posting of survey results; administration; licensing and life safety code; and sanitary and infection control and physical environment;

(vi) Labor related, which will include all salaries and personnel costs for nonadministrative and nonmangement employees including the employee's share of health benefits, other employee fringe benefits, payroll taxes, workers' compensation, group life, pension, and retirement insurance for those employees. This classification shall include employee costs and/or purchased service costs for the following categories: dietary, laundry and linen, housekeeping, RN's, LPN's, aides and orderlies, physical therapy, and other therapeutic services, recreational activities, social workers, and plant operation and maintenance; and

(vii) All other, which includes all other allowable costs not specifically covered by subdivisions (a) -- (f).

(2) For the fiscal year ending June 30, 1994, and each succeeding fiscal year, per diem maximum allowable costs for each cost center applicable during such fiscal year shall be as follows:

(i) For fixed property and OBRA 87, the maximum shall be equal to the cost at the one hundredth (100th) percentile of all continuously operating facilities arrayed in each cost center for calendar year 1991;

(ii) For labor related and all other, the maximum shall be equal to the cost at the eightieth (80th) percentile of all continuously operating facilities arrayed in each cost center for calendar year 1991;

(iii) For the energy and management related cost center, the maximum shall be equal to the cost at the seventy-fifth (75th) percentile of all continuously operating facilities arrayed in the cost center for calendar year 1991; provided, however, that for the fiscal year ending June 30, 1997, and each succeeding fiscal year, the per diem maximum allowable costs for the management related cost center shall be equal to the cost at the eightieth (80th) percentile of all continuously operating facilities arrayed in each cost center for calendar year 1991, such cost center ceiling to be adjusted by the national nursing home price index percentage increase granted on January 1, 1992 and January 1, 1993, and on an annual basis, commencing with the fiscal year beginning July 1, 1994 and each fiscal year thereafter to be adjusted on an annual basis consistent with the provisions of subdivision (3);

(iv) For the other property related cost center, the maximum allowable cost will be set at the rate of $18.97, for facilities licensed, under construction or that have made a significant financial commitment by July 1, 1993, or that will have submitted certificate of need applications by June 1, 1993 that will have been approved by September 30, 1993, and for future renovations to the existing bed supply; provided, however, that the reimbursement for depreciation and interest costs attributable to any future additions of bed capacity that exceed the lesser of ten (10) beds or ten percent (10%) of bed capacity or to construction of new facilities will be limited to a maximum equal to the cost at the seventieth (70th) percentile of all continuously operating facilities arrayed in the cost center for calendar year 1991. For those facilities to which the eighteen dollars and ninety-seven cents ($18.97) other property related maximum applies, the cost basis set forth in the principles of Reimbursement TN92-17 and a fifteen dollar ($15.00) maximum shall apply upon change of owner/operator to the new purchaser and/or operator of the facility. All costs, including salaries, must be absorbed within these group ceilings, except that the director may promulgate principles of reimbursement that permit increases in administrator salaries that may be accommodated within the combined cost center ceilings for the labor related and management cost centers. The total ceiling maximum will be the sum total of the seven (7) cost center ceilings.

(3) (i) Notwithstanding any other provision to the contrary, the national nursing home price index percentage increase granted on January 1, 1993 shall cover the period January 1, 1993 through June 30, 1994. Commencing with the fiscal year beginning July 1, 1994 and each fiscal year thereafter, except for the fiscal year beginning July 1, 1996 for which no such price index increase shall be applied, the annual percentage increase shall be applied to all cost center ceilings {ADD ; and provided further that all cost center ceilings shall be increased by an additional nine-tenths of one percent (.9%) effective on July 1, 1999. ADD} Individual cost center rates will be adjusted by the percentage change in the national nursing home price index for the twelve (12) month period ending the previous April; provided, however, that no such price index adjustment shall be applied for the fiscal year beginning July 1, 1996 {ADD ; and provided further that individual cost center rates shall be increased by an additional nine-tenths of one percent (.9%) effective on July 1, 1999 ADD} . The annual percentage increase shall not apply to any facility cost center rate being held harmless pursuant to the provisions of subdivision (6).

(ii) The amount of percentage change to be utilized will be the index as reported by the health care financing administration on the first date it is available in the month of April of each year.

(4) The base year system established under the Principles of Reimbursement, TN #92-17, promulgated by the department of human services will be continued as follows: Commencing with the reporting year 1991, and with every reporting year thereafter, one-third ( 1/3) of the participating nursing facilities will have a new base year. The prospective rate of each nursing facility with a new base year will be recalculated after the completion of a desk audit of the BM-64 cost report, and will be effective July 1 of the year subsequent to the year in which the cost report was submitted. The recalculated rate will reflect the actual allowable costs as determined by the audit updated by the national nursing home input price index percentage increase(s) for the year(s) subsequent to the audited year to produce the prospective rate, except that no such price index adjustment shall be applied for the fiscal year beginning July 1, 1996 {ADD ; and provided ADD} {ADD further that there shall be an additional price index adjustment of nine-tenths of one percent (.9%) effective on July 1, 1999 ADD}; provided, however, that the new prospective rate shall not exceed the maximum rates established for each cost center ceiling.

(5) Each nursing facility will report in account No. 470 the expenditure for health care provider assessment. The costs in this line item attributable to program revenue received will be fully recognized for reimbursement. An additional per diem rate will be calculated and added to each nursing facility rate to recognize the reimbursement.

(6) (i) Effective for the year ending June 30, 1994, and for each fiscal year thereafter, to encourage nursing facilities to accept and serve medicaid patients, all participating providers that had an overall medicaid occupancy for the preceding calendar year (e.g. calendar year 1992 for the fiscal year ending June 30, 1994) of eighty percent (80%) or greater will be allowed a .75 cent ($0.075) participating incentive factor per medicaid patient day, and all participating providers that had an overall medicaid occupancy for the preceding calendar year between fifty percent (50%) or greater but less than eighty percent (80%) will be allowed a .35 cent ($0.035) participating incentive factor. The participating incentive factor shall be subject to the ceiling maximum. {ADD With respect to state fiscal year ending June 30, 1999, each nursing facility duly licensed and participating as of June, 1999 shall be paid a one-time supplemental medicaid participating incentive factor of three dollars and twenty-one cents ($3.21) per day for each medicaid patient day in calendar year 1997 as reported on the facility's BM-64 cost report for calendar year 1997. ADD}

(ii) Effective July 1, 1993, each nursing facility shall receive a prospective rate made up of the allowed rates in each of the seven (7) cost centers, the rate attributable to the health care provider assessment, and, subject to the ceiling maximum applicable to the seven (7) cost centers in the aggregate, each nursing facility eligible shall receive the participating incentive factor. Provided; that for the fiscal year ending June 30, 1994, no nursing facility rate shall be adjusted in the energy, labor related, management related, all other, and other property related cost centers below the rate it was receiving or would have received in those cost centers on June 30, 1993, except for those changes resulting from the normal base year cycle audits and appeals; for the fiscal year ending June 30, 1995, no nursing facility's rate shall be adjusted in the energy, labor related, management related, all other, and other property related cost centers below the rate it was receiving or would have received in those cost centers on June 30, 1994, except for changes resulting from the normal base year cycle audits and appeals; for the fiscal year ending June 30, 1996, no nursing facility's rate shall be adjusted in the energy, labor related, management related, all other, and other property related cost centers below the rate it was receiving or would have received in those cost centers on June 30, 1995, except for changes resulting from the normal base year cycle audits and appeals. Provided, however, that for facilities under construction as of June 30, 1993, the reimbursement rate during the period from July 1, 1993 through June 30, 1995 shall be the lower of their actual cost per day during the first six (6) months of operation or the maximums in effect as of June 30, 1993.

(7) Every nursing facility that participates in the medical assistance program shall, within ninety (90) days of passage, make application for refinancing of existing long term debt through the Rhode Island economic development corporation to the extent that the final interest rate achievable shall be lower than the nursing facility's existing rate. Notwithstanding the provisions of chapter 64 of title 42 or any other provisions of the general laws to the contrary, the Rhode Island economic development corporation is hereby authorized and empowered to participate in the refinancing of long term debt of nursing facilities as provided in this subsection.

(8) Every nursing facility that participates in the medical assistance program shall, within ninety (90) days of passage file an appeal with the department of business regulation for workers' compensation rate relief on the basis of worker classification revisions.

(9) If a facility fails to file such an appeal with the department of business regulation for workers' compensation rate relief, the reimbursement rate in the labor and payroll related cost center will be reduced by an amount equal to the medicaid proportion of the cost that would have been saved had the facility filed and been successful in such appeal.

(10) All of the medicaid proportion of reductions of costs from refinancings and worker compensation savings achieved through the cooperative efforts of the department and individual facilities, including rebates for prior years workers' compensation costs, will be paid in their entirety to the state forthwith after such savings are realized by the facility.

(11) Rates determined under this section shall be in compliance with all applicable federal laws and regulations and any necessary Title XIX and state plan approval.

(12) It is the intent of this chapter that quality health care be delivered with full recognition of the need for cost containment. To the extent the state identifies any indication of violations of the cost containment philosophy inherent herein, it may disallow the costs involved subject to the right of the affected nursing facility to appeal such disallowance in a hearing before an adjudicative hearing officer of the Rhode Island department of human services. Such appeal shall be conducted in accordance with chapter 35 of title 42. Costs of such appeals will be borne by the appellants. In such proceedings, the burden of proof shall be on the nursing facility to rebut the state's finding by clear and convincing evidence.

SECTION 2. This article shall take effect upon passage, provided, however, that the additional rate adjustments and payments to qualifying nursing facilities authorized by this article are expressly conditioned upon receipt by the department of human services of written approval by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all medicaid state plan amendments, including but not limited to medicaid state plan amendment SPA 96-007, necessary to secure for the state the benefit of federal financial participation for such rate adjustments and payments; and provided further that the department of human services is authorized and directed to seek such federal approvals forthwith upon passage of this article, and to make payment to qualifying facilities expeditiously upon receipt of such federal approvals.

SECTION 1. WHEREAS, It is the public policy of the State of Rhode Island to provide support to public school districts in their efforts to improve the infrastructure of public education; and

WHEREAS, Many local communities continue to struggle to develop the resources necessary to provide students with necessary and appropriate educational facilities; and

WHEREAS, The State of Rhode Island has the ability to marshal its resources in an efficient and cost effective manner through its bonding capacity;

Now therefore, the Rhode Island Department of Education is hereby instructed to develop and present to the legislature during the 2000 legislative session legislation which extends the scope of state bonding capacity for public elementary and secondary facilities.

SECTION 2. Section 16-7.1-2 of the General Laws in Chapter 16-7.1 entitled "The Rhode Island Student Investment Initiative" is hereby amended to read as follows:

16-7.1-2. Accountability for student performance. -- The board of regents shall adopt and publish statewide standards of performance and performance benchmarks in core subject areas to include writing and mathematics (grades four (4), eight (8) and ten (10)). These standards and performance benchmarks shall be ratified by the board and implemented by December 31, 1997. By December 31, 1998, performance standards and performance benchmarks for reading in two (2) grades shall be added.

Districts and schools need to be held accountable for student performance results. Therefore, every school district receiving state education aid under Title 16 of the general laws shall develop a district strategic plan. The district strategic plan shall: be based on high academic standards for student performance consistent with the statewide standards and benchmarks; be the product of a shared community wide process which defines a vision of what students should know and be able to do; address the needs of each school in the district; encourage the development of school-based improvement planning and implementation; include a process for mentoring of new teachers; be designed to improve student achievement with emphasis on closing the performance gaps among groups of students such as the performance gaps correlated with poverty, gender, {DEL and DEL} language background {DEL ; DEL} {ADD and disability; ADD} include {ADD establishment of student intervention teams to address the instructional needs of diverse learners, and ADD} an asset protection plan; and be consistent with Rhode Island's Comprehensive Education Strategy. In order to assure the most efficient use of resources implementing strategic plans, districts and schools are encouraged to work together as consortia and as part of the regional collaboratives.

The strategic plan shall include strategies to improve the performance of students in mathematics, reading and writing. These strategies shall be based on the adequate yearly progress expected for students and schools. Annual performance targets for determining whether schools and districts have made adequate yearly progress will be set by the commissioner of education. The general assembly expects these district strategies to increase the number of fourth grade students performing at or above the proficient standard in mathematics, reading and writing in each district and school. In fiscal 1998-99 and beyond, the increase shall be established annually in accordance with section 16-7.1-4.

Each strategic plan must indicate the manner in which self-studies will be completed at the school level in accordance with guidelines established by the commissioner. Funds shall be appropriated to the department of elementary and secondary education to assist districts with on-site reviews. Schools to be visited shall be determined by the commissioner.

{ADD Each strategic plan shall include the development of inter-agency agreements for the coordination of services among state and local agencies responsible for service to children and families. These agreements shall address the identification and provision of services to pre-school children with disabilities and children and youth with behavioral health care needs. ADD}

All district strategic plans and annual updates shall be submitted to the commissioner of education no later than November 1, of each year. {ADD ADD}

SECTION 3. Sections 16-7.1-10 and 16-7.1-15 of the General Laws in Chapter 16-7.1 entitled "The Rhode Island Student Investment Initiative" are hereby amended to read as follows:

16-7.1-10. Professional development investment fund. -- In order to continue developing the skills of Rhode Island's teachers and staff, the general assembly hereby establishes a Professional Development Investment Fund. The general assembly shall annually appropriate some sum and distribute based on a pupil-teacher ratio which shall be adjusted annually by the commissioner of education. School districts may use funds received under this category of education aid to replace up to, but no more than, fifty percent (50%) of the amount the school district spent for professional development programs in the previous fiscal year. The expenditure of these funds shall be determined by a committee at each school consisting of the school principal; two teachers selected by the teaching staff of the school and two parents of students attending the school. Collaborative programs between schools are encouraged. These resources shall be used to close student performance gaps in accordance with the school's and district's strategic plan pursuant to section 16-7.1-2. {ADD Of the funds appropriated by the general assembly for professional development five hundred and fifty five thousand dollars ($555,000) representing fourteen and three-tenths of one percent (14.3%) of the amount allocated to each district in this investment fund, shall be retained by the department of elementary and secondary education to support teacher professional development in all districts including but not limited to (1) supporting mentoring systems; (2) providing school districts with program support to assist teachers in local school districts to improve reading instruction and enhance the integration of reading throughout the curriculum with the goal of improving student performance to high standards; (3) support for the design and implementation of a system for the training of school leaders; and (4) support for national board certification of teachers and grants for coordination and support of school based teacher professional development. ADD}

16-7.1-15. The Rhode Island Student Investment Initiative. -- Each locally or regionally operated school district shall receive as a base the same amount of school aid in all subsequent fiscal years as each district received in fiscal year 1997-1998. Each school district shall also receive school aid through each investment fund for which that district qualifies pursuant to sections 16-7.1-6, 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11, 16-7.1.12 and 16-7.1-16. These sums shall be in addition to the base amount described in this section. {ADD The total school aid distributed under this section in FY 2000 shall constitute not less than a 3.5 percent increase or more than a 13.5 percent increase in the aid distributed under this section in FY 1999 and each district shall receive the increase or decrease in aid necessary to meet this minimum or maximum funding level. Additionally, for FY 2000, any community with a tax effort index below 1.0 as calculated pursuant to 16-7.1-6 shall receive not less than a 6.75 percent increase in aid distributed under this section in FY 1999. ADD} Calculation and distribution of education aid under sections 16-5-31, 16-5-32, 16-7-20, 16-7-20.5, 16-7-34.2, 16-7-34.3, 16-24-6, 16-54-4 and 16-67-4 is hereby suspended. The funding of the purposes and activities of chapter 67 of this title, the Rhode Island Literacy and Dropout Prevention Act of 1967, shall be the same amount of the base amount of each district funded for that purpose in fiscal year 1997-1998. In addition each district shall expend three percent (3%) of its student equity and early childhood funds under the provisions of chapter 67 of this title.

SECTION 4. Section 16-8-10.1 of the General Laws in Chapter 16-8 entitled "Federal Aid" is hereby amended to read as follows:

16-8-10.1. Mandatory School Breakfast Program. -- All public {DEL elementary DEL} schools in which {DEL forty percent (40%) or more DEL} {ADD twenty percent (20%) or more ADD} of the students are eligible for free and reduced price type A lunches pursuant to section 16-8-10 and to federal and state regulations shall be required to make a breakfast program available to students attending the school. The breakfast program shall meet such rules and regulations as are adopted by the commissioner.

If a district projects that implementation of a school breakfast program in a traditional cafeteria-type setting is not manageable or cost effective, it may distribute a pre-packaged breakfast in a disposable container which shall be served to the students in a classroom setting before nine-thirty (9:30) a.m.

SECTION 5. Chapter 16-7.1 of the General Laws entitled "The Rhode Island Student Investment Initiative" is hereby amended by adding thereto the following section:

{ADD 16-7.1-18. Funding . -- ADD} {ADD Funding of the investment funds enumerated in section 16-7.1-6, 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11 and 16-7.1-12 shall be by funds set aside from the state operations aid to be provided to school districts in the same manner as funds set aside and provided to school districts pursuant to chapter 67 of title 16 for literacy programs. The amount to be set aside will be that amount designated for each investment fund in the state budget as enacted. The funds thus set aside and provided to school districts shall be restricted to be used for the purposes required by the terms of section 16-7.1-6, 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11 and 16-7.1-12. The full set aside amount will be available for use by the school district. Use of this set aside amount is restricted to the purposes enumerated above and must be based on the strategic plan required to be submitted by local school districts to the department of elementary and secondary education by chapter 7.1 of title 16. ADD}

SECTION 6. Children with disabilities study . -- The general assembly hereby establishes a children with disabilities study which shall review special education within the context of school reform. The study shall identify factors which influence the disproportionate designation of students as disabled and their educational programming, the performance of these students on state assessments, the graduation rates of those students, their employment status, their independent living status and their participation in post-secondary education. The study shall also examine federal and state special education funding practices.

All departments and agencies of the state shall furnish such advice and information, documentary and otherwise, to said study and its agents as is deemed necessary or desirable by the study to facilitate the purposes of this resolution.

The General Assembly may provide such funds as it deems necessary to carry out the purposes of this article.

The Speaker of the House is hereby authorized and directed to provide suitable staff and quarters for said study.

{DELSECTION 7. Joint Committee on Education Accountability. -- There is hereby created a permanent Joint Committee on Education Accountability to monitor the progress made in implementing education reforms enacted by the General Assembly.

The committee shall be comprised of nine (9) members of the General Assembly, of which four (4) shall be appointed by the Senate Majority Leader, no more than three (3) from the same political party, and five (5) appointed by the Speaker of the House, no more than four (4) from the same political party. The Chair of the committee shall rotate every four (4) years, alternating between the House and Senate with each new Chairman. The Vice-Chairman shall be from the opposite chamber of the Chair. Upon passage the first Chair shall be from the House.

The Committee shall review the educational performance and progress of the public schools of the state. The committee shall review education related data including, but not limited to, student performance, school and school district strategic planning, and educational expenditures. The Committee shall recommend policy initiatives to the General Assembly. The Committee will not review nor vote on legislation.

All departments and agencies of the state shall furnish such advice and information, documentary and otherwise, to the committee and its agents as is deemed necessary or desirable by the committee to facilitate the purposes of this article.

The General Assembly may provide such funds as it deems necessary to carry out the purposes of this article.

The Speaker of the House is hereby authorized and directed to provide suitable staff and quarters.DEL}

{ADDSECTION 7. The Board of Regents shall adopt regulations on alternative education programs for students who are chronically subject to suspension. The regulations shall be adopted by February 1, 2000.

The regulations shall include:

1. Standards for establishment and operation of alternative education programs by public school districts;

2. A review process to be implemented by the Board of Regents to assess the effectiveness of the education and behavioral programs of the alternative education programs;

3. A process to identify sources of funding that may be available to school districts to operate an alternative education program.ADD}

SECTION 8. This article shall take effect on July 1, 1999.

SECTION 1. Section 42-66.2-3 of the General Laws in Chapter 42-66.2 entitled "Pharmaceutical Assistance to the Elderly Act" is hereby amended to read as follows:

42-66.2-3. Definitions. -- As used in this chapter, unless the context requires otherwise:

(1) "Consumer" means any full-time resident of the state who fulfills the eligibility requirements set forth in section 42-66.2-5. Residence for purposes of this chapter shall be in accordance with the definitions and evidence standards set forth in section 17-1-3.1.

(2) "Contractor" means a third party or private vendor capable of administering a program of reimbursement for prescription drugs, and drug program eligibility administrative support as required by the director, the vendor to be determined through a competitive bid process in which the director awards a three (3) year contract for services.

(3) "Department" means the department of elderly affairs.

(4) "Director" means the director of the department of elderly affairs.

(5) "Drugs" and "eligible drugs" shall mean insulin and shall mean noninjectable drugs which require a physician's prescription according to federal law and which are contained in the following American hospital formulary service pharmacologic-therapeutic classifications categories that have not been determined by the federal "drug efficacy and safety implementation (DESI) commission" to lack substantial evidence of effectiveness. Drugs and eligible drugs are limited to the following classification categories: cardiac drugs, hypotensive drugs, diuretics, anti-diabetic agents, insulin, disposable insulin syringes, vasodilators (cardiac indications only), anticoagulants, hemorreolgic agents, glaucoma drugs, drugs for the treatment of Parkinson's disease, antilipemic drugs and oral antineoplastic drugs and drugs for the treatment of asthma and other chronic respiratory diseases and prescription vitamin and mineral supplements for renal patients and drugs approved for the treatment of alzheimer's disease {DEL . DEL} {ADD , drugs used for the treatment of depression, and drugs used for the treatment of incontinence. ADD}

(6) "Income" for the purposes of this chapter means the sum of federal adjusted gross income as defined in the Internal Revenue Code of the United States, and all nontaxable income including but not limited to, the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief (not including relief granted under this chapter), the gross amount of any pension or annuity (including Railroad Retirement Act benefits, all payments received under the federal Social Security Act, state unemployment insurance laws, and veterans' disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of "loss of time" insurance. It does not include gifts from nongovernmental sources, or surplus foods or other relief in kind supplied by a public or private agency.

(7) "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.

(8) "Pharmacy" means a pharmacy licensed by the state of Rhode Island and whose place of business is physically located within the state.

(9) "Pilot program contractor" means Blue Cross and Blue Shield of Rhode Island.

SECTION 2. This article shall take effect upon passage.

SECTION 2. This article shall take effect upon passage.DEL}

RESOLVED, That the Task Force shall report its findings and recommendations to the General Assembly on or before February 2, 2000 and said Task Force shall expire on April 2, 2000 DEL}

SECTION 1. This act shall take effect July 1, 1999, except as otherwise provided herein.

In articles where it is provided that the effective date shall be either "July 1, 1999" or "upon passage", and no provision is made for retroactive or prospective application, the effective date shall be July 1, 1999, and if the act is enacted after July 1, 1999, then the article shall be retroactive to July 1, 1999.

In articles where it is provided that the effective date shall be either "July 1, 1999" or "upon passage" and provision is made within the article for retroactive or prospective application, the article shall take effect on July 1, 1999 and its application made retroactive or prospective as set forth in this article.

SECTION 2. This article shall take effect upon passage.