2024 -- H 7225

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LC004143

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

____________

A N   A C T

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL

YEAR ENDING JUNE 30, 2025

     

     Introduced By: Representative Marvin L. Abney

     Date Introduced: January 18, 2024

     Referred To: House Finance

     (Governor)

It is enacted by the General Assembly as follows:

1

     ARTICLE 1 RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY

2

2025

3

     ARTICLE 2 RELATING TO STATE FUNDS

4

     ARTICLE 3 RELATING TO GOVERNMENT REFORM AND REORGANIZATION

5

     ARTICLE 4 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

6

     ARTICLE 5 RELATING TO CAPITAL DEVELOPMENT PROGRAM

7

     ARTICLE 6 RELATING TO TAXES AND FEES

8

     ARTICLE 7 RELATING TO ECONOMIC DEVELOPMENT

9

     ARTICLE 8 RELATING TO EDUCATION

10

     ARTICLE 9 RELATING TO HEALTH AND HUMAN SERVICES

11

     ARTICLE 10 RELATING TO LEASES

12

     ARTICLE 11 RELATING TO EFFECTIVE DATE

 

1

ARTICLE 1

2

RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2025

3

     SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in

4

this act, the following general revenue amounts are hereby appropriated out of any money in the

5

treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2025.

6

The amounts identified for federal funds and restricted receipts shall be made available pursuant to

7

section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the purposes

8

and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw

9

his or her orders upon the general treasurer for the payment of such sums or such portions thereof

10

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

11

Administration

12

Central Management

13

General Revenues 3,654,794

14

Federal Funds

15

Federal Funds 33,000,000

16

Federal Funds - State Fiscal Recovery Fund

17

     Public Health Response Warehouse Support 778,347

18

     Health Care Facilities 10,000,000

19

     Community Learning Center Programming Support Grant 2,000,000

20

     Total - Central Management 49,433,141

21

Legal Services

22

General Revenues 2,491,594

23

Accounts and Control

24

General Revenues 5,355,257

25

Restricted Receipts - OPEB Board Administration 155,811

26

Restricted Receipts - Grants Management Administration 2,477,997

27

     Total - Accounts and Control 7,989,065

28

Office of Management and Budget

29

General Revenues 9,915,379

30

Federal Funds

31

Federal Funds 101,250

32

Federal Funds – Capital Projects Fund

33

     CPF Administration 484,149

34

Federal Funds – State Fiscal Recovery Fund

 

LC004143 - Page 2 of 226

1

     Pandemic Recovery Office 1,345,998

2

Restricted Receipts 300,000

3

Other Funds 617,223

4

     Total - Office of Management and Budget 12,763,999

5

Purchasing

6

General Revenues 4,232,292

7

Restricted Receipts 461,480

8

Other Funds 571,626

9

     Total - Purchasing 5,265,398

10

Human Resources

11

General Revenues 943,668

12

Personnel Appeal Board

13

General Revenues 159,290

14

Information Technology

15

General Revenues 1,988,147

16

Restricted Receipts 3,379,840

17

     Total - Information Technology 5,367,987

18

Library and Information Services

19

General Revenues 1,949,487

20

Federal Funds 1,606,151

21

Restricted Receipts 6,990

22

     Total - Library and Information Services 3,562,628

23

Planning

24

General Revenues 1,175,750

25

Federal Funds 3,050

26

Restricted Receipts 50,000

27

Other Funds

28

     Air Quality Modeling 24,000

29

     Federal Highway - PL Systems Planning 3,597,529

30

     State Transportation Planning Match 454,850

31

     FTA - Metro Planning Grant 1,453,240

32

     Total-Planning 6,758,419

33

General

34

General Revenues

 

LC004143 - Page 3 of 226

1

     Miscellaneous Grants/Payments 510,405

2

     Torts Court Awards 1,350,000

3

     Wrongful Conviction Awards 250,000

4

     Resource Sharing and State Library Aid 11,475,314

5

     Library Construction Aid 2,232,819

6

Restricted Receipts 1,000,000

7

Other Funds

8

     Rhode Island Capital Plan Funds

9

     Security Measures State Buildings 975,000

10

     Energy Efficiency Improvements 1,000,000

11

     Cranston Street Armory 3,250,000

12

     State House Renovations 2,209,000

13

     Zambarano Buildings and Campus 4,740,000

14

     Replacement of Fueling Tanks 700,000

15

     Environmental Compliance 725,000

16

     Big River Management Area 754,154

17

     Shepard Building Upgrades 435,000

18

     RI Convention Center Authority 3,590,000

19

     Pastore Center Power Plant 250,000

20

     Accessibility - Facility Renovations 288,928

21

     DoIT Enterprise Operations Center 2,550,000

22

     Cannon Building 700,000

23

     Old State House 500,000

24

     State Office Building 675,000

25

     State Office Reorganization & Relocation 250,000

26

     William Powers Building 2,400,000

27

     Pastore Center Non-Hospital Buildings Asset Protection 9,550,000

28

     Washington County Government Center 800,000

29

     Chapin Health Laboratory 350,000

30

     560 Jefferson Blvd Asset Protection 1,600,000

31

     Arrigan Center 75,000

32

     Civic Center 3,550,000

33

     Pastore Center Buildings Demolition 9,900,000

34

     Veterans Auditorium 400,000

 

LC004143 - Page 4 of 226

1

     Pastore Center Hospital Buildings Asset Protection 4,500,000

2

     Pastore Campus Infrastructure 25,000,000

3

     Community Facilities Asset Protection 925,000

4

     Zambarano LTAC Hospital 7,099,677

5

     Medical Examiners - New Facility 50,000

6

     Group Home Replacement & Rehabilitation 5,000,000

7

     Hospital Consolidation 25,000,000

8

     Expo Center 1,220,000

9

     Group Homes Consolidation 4,325,000

10

     Total - General 142,155,297

11

Debt Service Payments

12

General Revenues 165,237,664

13

Other Funds

14

     Transportation Debt Service 32,887,674

15

     Investment Receipts - Bond Funds 100,000

16

     Total - Debt Service Payments 198,225,338

17

Energy Resources

18

General Revenues 500,000

19

     Provided that this amount be allocated to support the electric bicycle rebate program.

20

Federal Funds 15,042,632

21

Restricted Receipts 23,217,475

22

Other Funds 4,064,322

23

     Total - Energy Resources 42,824,429

24

Rhode Island Health Benefits Exchange

25

General Revenues 3,529,116

26

Federal Funds 10,758,473

27

Restricted Receipts 16,139,854

28

     Total - Rhode Island Health Benefits Exchange 30,427,443

29

Division of Equity, Diversity & Inclusion

30

General Revenues 2,652,119

31

Other Funds 110,521

32

     Total - Division of Equity, Diversity & Inclusion 2,762,640

33

Capital Asset Management and Maintenance

34

General Revenues 8,267,729

 

LC004143 - Page 5 of 226

1

     Grand Total - Administration 519,398,065

2

Business Regulation

3

Central Management

4

General Revenues 3,999,763

5

Banking Regulation

6

General Revenues 1,904,080

7

Restricted Receipts 63,000

8

     Total - Banking Regulation 1,967,080

9

Securities Regulation

10

General Revenues 880,722

11

Insurance Regulation

12

General Revenues 4,844,248

13

Restricted Receipts 1,872,951

14

     Total - Insurance Regulation 6,717,199

15

Office of the Health Insurance Commissioner

16

General Revenues 3,444,417

17

Federal Funds 500,000

18

Restricted Receipts 527,468

19

     Total - Office of the Health Insurance Commissioner 4,471,885

20

Board of Accountancy

21

General Revenues 5,490

22

Commercial Licensing and Gaming and Athletics Licensing

23

General Revenues 949,709

24

Restricted Receipts 1,046,895

25

     Total - Commercial Licensing and Gaming and Athletics Licensing 1,996,604

26

Building, Design and Fire Professionals

27

General Revenues 8,489,335

28

Federal Funds 345,863

29

Restricted Receipts 1,948,472

30

Other Funds

31

     Quonset Development Corporation 67,300

32

     Rhode Island Capital Plan Funds

33

     Fire Academy Expansion 1,941,000

34

     Total - Building, Design and Fire Professionals 12,791,970

 

LC004143 - Page 6 of 226

1

Office of Cannabis Regulation

2

Restricted Receipts 6,814,062

3

     Grand Total - Business Regulation 39,644,775

4

Executive Office of Commerce

5

Central Management

6

General Revenues 2,264,703

7

Quasi-Public Appropriations

8

General Revenues

9

     Rhode Island Commerce Corporation 8,506,041

10

     Airport Impact Aid 1,010,036

11

     Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be

12

distributed to each airport serving more than 1,000,000 passengers based upon its percentage of the

13

total passengers served by all airports serving more than 1,000,000 passengers. Forty percent (40%)

14

of the first $1,000,000 shall be distributed based on the share of landings during calendar year 2024

15

at North Central Airport, Newport-Middletown Airport, Block Island Airport, Quonset Airport,

16

T.F. Green International Airport and Westerly Airport, respectively. The Rhode Island Commerce

17

Corporation shall make an impact payment to the towns or cities in which the airport is located

18

based on this calculation. Each community upon which any part of the above airports is located

19

shall receive at least $25,000.

20

     STAC Research Alliance 900,000

21

     Innovative Matching Grants/Internships 1,000,000

22

     I-195 Redevelopment District Commission 1,245,050

23

     Polaris Manufacturing Grant 450,000

24

     East Providence Waterfront Commission 50,000

25

     Urban Ventures 140,000

26

     Chafee Center at Bryant 476,200

27

     Industrial Recreational Building Authority Obligations 452,553

28

Other Funds

29

     Rhode Island Capital Plan Funds

30

     I-195 Redevelopment District Commission 646,180

31

     I-195 Park Improvements 3,000,000

32

     Quonset Carrier Pier 2,250,000

33

     Quonset Infrastructure 2,500,000

34

     Total - Quasi-Public Appropriations 22,626,060

 

LC004143 - Page 7 of 226

1

Economic Development Initiatives Fund

2

General Revenues

3

     Innovation Initiative 1,000,000

4

     Rebuild RI Tax Credit Fund 10,085,000

5

     Small Business Promotion 1,000,000

6

     Small Business Assistance 2,000,000

7

     Destination Marketing 1,400,000

8

Federal Funds

9

Federal Funds 20,000,000

10

Federal Funds - State Fiscal Recovery Fund

11

     Assistance to Impacted Industries 2,000,000

12

     Total - Economic Development Initiatives Fund 37,485,000

13

Commerce Programs

14

General Revenues

15

     Wavemaker Fellowship 3,576,400

16

     Air Service Development Fund 1,200,000

17

     Main Street RI Streetscape Improvement Fund 1,000,000

18

     Minority Business Accelerator 500,000

19

     Total - Commerce Programs 6,276,400

20

     Grand Total - Executive Office of Commerce 68,652,163

21

Housing

22

Central Management

23

General Revenues 9,840,596

24

Federal Funds 18,530,670

25

Restricted Receipts 7,664,150

26

     Grand Total - Housing 36,035,416

27

Labor and Training

28

Central Management

29

General Revenues 1,763,445

30

      Provided that $200,000 shall be allocated to the Workers’ Compensation Advisory Council

31

for the purpose of conducting a comprehensive study of the Rhode Island workers’ compensation

32

system that shall include an analysis of rates, benefits, and administrative costs. The report shall

33

include metrics comparing the Rhode Island workers’ compensation system to other states and shall

34

include recommendations for system improvements. The report shall be submitted to the Governor,

 

LC004143 - Page 8 of 226

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the Speaker of the House of Representatives, and the President of the Senate no later than March

2

31, 2025.

3

Restricted Receipts 305,765

4

     Total - Central Management 2,069,210

5

Workforce Development Services

6

General Revenues 1,109,430

7

     Provided that $200,000 of this amount is used to support Year Up.

8

Federal Funds 23,836,453

9

     Total - Workforce Development Services 24,945,883

10

Workforce Regulation and Safety

11

General Revenues 4,833,768

12

Income Support

13

General Revenues 3,692,213

14

Federal Funds 18,875,141

15

Restricted Receipts 2,721,683

16

Other Funds

17

     Temporary Disability Insurance Fund 278,906,931

18

     Employment Security Fund 222,700,000

19

     Total - Income Support 526,895,968

20

Injured Workers Services

21

Restricted Receipts 10,630,130

22

Labor Relations Board

23

General Revenues 541,797

24

Governor’s Workforce Board

25

General Revenues 6,050,000

26

     Provided that $600,000 of these funds shall be used for enhanced training for direct care

27

and support services staff to improve resident quality of care and address the changing health care

28

needs of nursing facility residents due to higher acuity and increased cognitive impairments

29

pursuant to Rhode Island General Laws, Section 23-17.5-36.

30

Restricted Receipts 18,379,506

31

     Total - Governor’s Workforce Board 24,429,506

32

     Grand Total - Labor and Training 594,346,262

33

Department of Revenue

34

Director of Revenue

 

LC004143 - Page 9 of 226

1

General Revenues 2,883,605

2

Office of Revenue Analysis

3

General Revenues 1,015,848

4

Lottery Division

5

Other Funds 422,981,930

6

Municipal Finance

7

General Revenues 1,741,697

8

Taxation

9

General Revenues 35,022,773

10

Restricted Receipts 4,826,512

11

Other Funds

12

     Motor Fuel Tax Evasion 175,000

13

     Total - Taxation 40,024,285

14

Registry of Motor Vehicles

15

General Revenues 31,206,744

16

Federal Funds 805,667

17

Restricted Receipts 3,659,640

18

     Total - Registry of Motor Vehicles 35,672,051

19

State Aid

20

General Revenues

21

     Distressed Communities Relief Fund 12,384,458

22

     Payment in Lieu of Tax Exempt Properties 49,201,412

23

     Motor Vehicle Excise Tax Payments 234,712,307

24

     Property Revaluation Program 1,887,448

25

     Tangible Tax Exemption Program 28,000,000

26

     Provided that all unexpended or unencumbered balances as of June 30, 2025, appropriated

27

for tangible tax exemption reimbursements pursuant to Rhode Island General Law, Chapter 44-5.3

28

are hereby reappropriated to the following fiscal year.

29

Restricted Receipts 995,120

30

     Total - State Aid 327,180,745

31

Collections

32

General Revenues 965,438

33

     Grand Total - Revenue 832,465,599

34

Legislature

 

LC004143 - Page 10 of 226

1

General Revenues 53,358,280

2

Restricted Receipts 2,431,651

3

     Grand Total - Legislature 55,789,931

4

Lieutenant Governor

5

General Revenues 1,447,015

6

Secretary of State

7

Administration

8

General Revenues 5,076,740

9

     Provided that $100,000 be allocated to support the Rhode Island Council for the

10

Humanities for grant making to civic and cultural organizations, and $50,000 to support Rhode

11

Island’s participation in the We the People Civics Challenge.

12

Corporations

13

General Revenues 2,807,730

14

State Archives

15

General Revenues 349,562

16

Restricted Receipts 384,347

17

Other Funds

18

     Rhode Island Capital Plan Funds

19

     Rhode Island Archives and History Center 3,757,444

20

     Total - State Archives 4,491,353

21

Elections and Civics

22

General Revenues 2,489,990

23

Federal Funds 2,001,207

24

     Total - Elections and Civics 4,491,197

25

State Library

26

General Revenues 649,250

27

     Provided that $125,000 be allocated to support the Rhode Island Historical Society and

28

$18,000 be allocated to support the Newport Historical Society, pursuant to Sections 29-2-1 and

29

29-2-2 of the Rhode Island General Laws, and $25,000 be allocated to support the Rhode Island

30

Black Heritage Society.

31

Office of Public Information

32

General Revenues 738,969

33

Receipted Receipts 25,000

34

     Total - Office of Public Information 763,969

 

LC004143 - Page 11 of 226

1

     Grand Total - Secretary of State 18,280,239

2

General Treasurer

3

Treasury

4

General Revenues 3,022,950

5

Federal Funds 335,037

6

Other Funds

7

     Temporary Disability Insurance Fund 247,266

8

     Tuition Savings Program - Administration 353,760

9

     Total -Treasury 3,959,013

10

State Retirement System

11

Restricted Receipts

12

     Admin Expenses - State Retirement System 11,808,078

13

     Retirement - Treasury Investment Operations 2,149,961

14

     Defined Contribution - Administration 287,609

15

     Total - State Retirement System 14,245,648

16

Unclaimed Property

17

Restricted Receipts 2,981,837

18

Crime Victim Compensation

19

General Revenues 892,383

20

Federal Funds 427,993

21

Restricted Receipts 380,000

22

     Total - Crime Victim Compensation 1,700,376

23

     Grand Total - General Treasurer 22,886,874

24

Board of Elections

25

General Revenues 5,156,957

26

Rhode Island Ethics Commission

27

General Revenues 2,299,337

28

Office of Governor

29

General Revenues

30

     General Revenues 8,321,265

31

     Contingency Fund 150,000

32

     Grand Total - Office of Governor 8,471,265

33

Commission for Human Rights

34

General Revenues 2,055,616

 

LC004143 - Page 12 of 226

1

Federal Funds 450,110

2

     Grand Total - Commission for Human Rights 2,505,726

3

Public Utilities Commission

4

Federal Funds 711,984

5

Restricted Receipts 13,739,288

6

     Grand Total - Public Utilities Commission 14,451,272

7

Office of Health and Human Services

8

Central Management

9

General Revenues 56,010,456

10

Federal Funds 203,893,766

11

     Provided that $250,000 shall be for the Executive Office to develop an Olmstead Plan.

12

Restricted Receipts 45,392,855

13

     Total - Central Management 305,297,077

14

Medical Assistance

15

General Revenues

16

     Managed Care 457,974,487

17

     Hospitals 119,660,046

18

     Nursing Facilities 174,411,630

19

     Home and Community Based Services 84,020,529

20

     Other Services 169,441,306

21

     Pharmacy 107,728,475

22

     Rhody Health 239,649,563

23

Federal Funds

24

     Managed Care 612,367,722

25

     Hospitals 238,078,826

26

     Nursing Facilities 221,888,370

27

     Home and Community Based Services 107,019,363

28

     Other Services 798,187,128

29

     Pharmacy (628,475)

30

     Rhody Health 302,471,709

31

     Other Programs 21,379,083

32

Restricted Receipts 9,833,144

33

     Total - Medical Assistance 3,663,482,906

34

     Grand Total - Office of Health and Human Services 3,968,779,983

 

LC004143 - Page 13 of 226

1

Children, Youth and Families

2

Central Management

3

General Revenues 14,365,996

4

     The director of the department of children, youth and families shall provide to the speaker

5

of the house and president of the senate at least every sixty (60) days beginning September 1, 2021,

6

a report on its progress implementing the accreditation plan filed in accordance with Rhode Island

7

General Law, Section 42-72-5.3 and any projected changes needed to effectuate that plan. The

8

report shall, at minimum, provide data regarding recruitment and retention efforts including

9

attaining and maintaining a diverse workforce, documentation of newly filled and vacated

10

positions, and progress towards reducing worker caseloads.

11

Federal Funds 8,118,289

12

     Total - Central Management 22,484,285

13

Children's Behavioral Health Services

14

General Revenues 7,732,064

15

Federal Funds 9,693,607

16

     Total - Children's Behavioral Health Services 17,425,671

17

Youth Development Services

18

General Revenues 22,893,954

19

Federal Funds 224,837

20

Restricted Receipts 144,986

21

Other Funds

22

     Rhode Island Capital Plan Funds

23

     Training School Asset Protection 250,000

24

     Residential Treatment Facility 15,000,000

25

     Total - Youth Development Services 38,513,777

26

Child Welfare

27

General Revenues 190,681,186

28

Federal Funds 91,871,773

29

Restricted Receipts 558,571

30

     Total - Child Welfare 283,111,530

31

Higher Education Incentive Grants

32

General Revenues 200,000

33

     Provided that these funds and any unexpended or unencumbered previous years’ funding

34

are to be used exclusively to fund awards to eligible youth.

 

LC004143 - Page 14 of 226

1

     The director of the department of children, youth and families shall provide to the governor,

2

speaker of the house and president of the senate a report on higher education participation for

3

department affiliated youth. The report due on December 1 and July 1 of each year shall, at

4

minimum, include data by institution on the past 180 days regarding amounts awarded, each

5

awardee’s unmet need, the number of youth eligible, applications, and awards made by the

6

department, and the number of students who dropped out. It shall also include participation

7

information on trade school and workforce development programs.

8

     Grand Total - Children, Youth and Families 361,735,263

9

Health

10

Central Management

11

General Revenues 3,569,508

12

Federal Funds 9,348,930

13

Restricted Receipts 17,365,961

14

     Provided that the disbursement of any indirect cost recoveries on federal grants budgeted

15

in this line item that are derived from grants authorized under The Coronavirus Preparedness and

16

Response Supplemental Appropriations Act (P.L. 116-123); The Families First Coronavirus

17

Response Act (P.L. 116-127); The Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-

18

136); The Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-139); the

19

Consolidated Appropriations Act, 2021 (P.L. 116-260); and the American Rescue Plan Act of 2021

20

(P.L. 117-2), are hereby subject to the review and prior approval of the Director of Management

21

and Budget. No obligation or expenditure of these funds shall take place without such approval.

22

     Total - Central Management 30,284,399

23

Community Health and Equity

24

General Revenues 1,151,326

25

Federal Funds 83,451,102

26

Restricted Receipts 80,924,334

27

     Total - Community Health and Equity 165,526,762

28

Environmental Health

29

General Revenues 7,155,472

30

Federal Funds 11,442,251

31

Restricted Receipts 968,283

32

     Total - Environmental Health 19,566,006

33

Health Laboratories and Medical Examiner

34

General Revenues 13,340,120

 

LC004143 - Page 15 of 226

1

Federal Funds 2,515,810

2

Other Funds

3

     Rhode Island Capital Plan Funds

4

     Health Laboratories & Medical Examiner Equipment 800,000

5

     Department of Health Laboratory Building 3,221,762

6

     Total - Health Laboratories and Medical Examiner 19,877,692

7

Customer Services

8

General Revenues 8,969,365

9

Federal Funds 7,882,616

10

Restricted Receipts 5,773,607

11

     Total - Customer Services 22,625,588

12

Policy, Information and Communications

13

General Revenues 998,588

14

Federal Funds 4,095,600

15

Restricted Receipts 1,812,550

16

     Total - Policy, Information and Communications 6,906,738

17

Preparedness, Response, Infectious Disease & Emergency Services

18

General Revenues 2,169,568

19

Federal Funds 17,503,333

20

     Total - Preparedness, Response, Infectious Disease & Emergency Services 19,672,901

21

COVID-19

22

Federal Funds 57,721,419

23

     Grand Total - Health 342,181,505

24

Human Services

25

Central Management

26

General Revenues 6,160,641

27

     Of this amount, $400,000 is to support the Domestic Violence Prevention Fund to provide

28

direct services through the Coalition Against Domestic Violence, $25,000 for the Center for

29

Southeast Asians, $450,000 to support Project Reach activities provided by the RI Alliance of Boys

30

and Girls Clubs, $267,000 is for outreach and supportive services through Day One, $550,000 is

31

for food collection and distribution through the Rhode Island Community Food Bank, $500,000 for

32

services provided to the homeless at Crossroads Rhode Island, $600,000 for the Community Action

33

Fund, $250,000 is for the Institute for the Study and Practice of Nonviolence’s Reduction Strategy,

34

$75,000 is to support services provided to the immigrant and refugee population through Higher

 

LC004143 - Page 16 of 226

1

Ground International, and $50,000 is for services provided to refugees through the Refugee Dream

2

Center.

3

     The director of the department of human services shall provide to the speaker of the house,

4

president of the senate, and chairs of the house and senate finance committees at least every sixty

5

(60) days beginning August 1, 2022, a report on its progress in recruiting and retaining customer

6

serving staff. The report shall include: documentation of newly filled and vacated positions,

7

including lateral transfers, position titles, civil service information, including numbers of eligible

8

and available candidates, plans for future testing and numbers of eligible and available candidates

9

resulting from such testing, impacts on caseload backlogs and call center wait times, as well as

10

other pertinent information as determined by the director.

11

Federal Funds 8,012,780

12

     Of this amount, $3.0 million is to sustain Early Head Start and Head Start programs.

13

Restricted Receipts 300,000

14

     Total - Central Management 14,473,421

15

Child Support Enforcement

16

General Revenues 4,624,506

17

Federal Funds 9,988,214

18

Restricted Receipts 3,823,859

19

     Total - Child Support Enforcement 18,436,579

20

Individual and Family Support

21

General Revenues 46,482,910

22

Federal Funds 131,396,290

23

Restricted Receipts 705,708

24

Other Funds

25

     Rhode Island Capital Plan Funds

26

     Blind Vending Facilities 165,000

27

     Food Stamp Bonus Funding 298,874

28

     Total - Individual and Family Support 179,048,782

29

Office of Veterans Services

30

General Revenues 33,185,642

31

     Of this amount, $200,000 is to provide support services through Veterans’ organizations,

32

$50,000 is to support Operation Stand Down, and $100,000 is to support the Veterans Services

33

Officers (VSO) program through the Veterans of Foreign Wars.

34

Federal Funds 16,618,112

 

LC004143 - Page 17 of 226

1

Restricted Receipts 1,360,000

2

Other Funds

3

     Rhode Island Capital Plan Funds

4

     Veterans Home Asset Protection 760,000

5

     Veterans Memorial Cemetery Asset Protection 250,000

6

     Total - Office of Veterans Services 52,173,754

7

Health Care Eligibility

8

General Revenues 10,634,812

9

Federal Funds 16,821,865

10

     Total - Health Care Eligibility 27,456,677

11

Supplemental Security Income Program

12

General Revenues 16,521,000

13

Rhode Island Works

14

General Revenues 10,139,902

15

Federal Funds 86,480,618

16

     Total - Rhode Island Works 96,620,520

17

Other Programs

18

General Revenues 2,444,424

19

     Of this appropriation, $90,000 shall be used for hardship contingency payments.

20

Federal Funds 361,440,000

21

Restricted Receipts 8,000

22

     Total - Other Programs 363,892,424

23

Office of Healthy Aging

24

General Revenues 11,811,882

25

     Of this amount, $325,000 is to provide elder services, including respite, through the

26

Diocese of Providence, $40,000 is for ombudsman services provided by the Alliance for Long Term

27

Care in accordance with Rhode Island General Laws, Chapter 42-66.7, $85,000 is for security for

28

housing for the elderly in accordance with Rhode Island General Law, Section 42-66.1-3, and

29

$1,400,000 is for Senior Services Support and $680,000 is for elderly nutrition, of which $630,000

30

is for Meals on Wheels.

31

Federal Funds 15,592,237

32

Restricted Receipt 46,200

33

Other Funds

34

     Intermodal Surface Transportation Fund 1,082,242

 

LC004143 - Page 18 of 226

1

     Total - Office of Healthy Aging 28,532,561

2

     Grand Total - Human Services 797,155,718

3

Behavioral Healthcare, Developmental Disabilities and Hospitals

4

Central Management

5

General Revenues 2,780,069

6

Federal Funds 1,276,605

7

     Total - Central Management 4,056,674

8

Hospital and Community System Support

9

General Revenues 1,463,642

10

Federal Funds 400,294

11

Restricted Receipts 67,548

12

     Total - Hospital and Community System Support 1,931,484

13

Services for the Developmentally Disabled

14

General Revenues 225,785,600

15

     Provided that of this general revenue funding, an amount certified by the department shall

16

be expended on certain community-based department of behavioral healthcare, developmental

17

disabilities and hospitals (BHDDH) developmental disability private provider and self-directed

18

consumer direct care service worker raises and associated payroll costs as authorized by BHDDH

19

and to finance the new services rates implemented by BHDDH pursuant to the Consent Decree

20

Action Plan. Any increase for direct support staff and residential or other community-based setting

21

must first receive the approval of BHDDH.

22

Federal Funds 283,359,342

23

     Provided that of this federal funding, an amount certified by the department shall be

24

expended on certain community-based department of behavioral healthcare, developmental

25

disabilities and hospitals (BHDDH) developmental disability private provider and self-directed

26

consumer direct care service worker raises and associated payroll costs as authorized by BHDDH

27

and to finance the new services rates implemented by BHDDH pursuant to the Consent Decree

28

Action Plan. Any increase for direct support staff and residential or other community-based setting

29

must first receive the approval of BHDDH.

30

Restricted Receipts 1,444,204

31

     Total - Services for the Developmentally Disabled 510,589,146

32

Behavioral Healthcare Services

33

General Revenues 4,118,531

34

Federal Funds

 

LC004143 - Page 19 of 226

1

Federal Funds 33,919,356

2

     Provided that $250,000 from Social Services Block Grant funds is awarded to The

3

Providence Center to coordinate with Oasis Wellness and Recovery Center for its support and

4

services program offered to individuals with behavioral health issues.

5

Federal Funds - State Fiscal Recovery Fund

6

9-8-8 Hotline 1,875,000

7

Restricted Receipts 6,819,883

8

     Provided that $500,000 from the Opioid Stewardship Fund is distributed equally to the

9

seven Regional Substance Abuse Prevention Task Forces to fund priorities determined by each

10

Task Force.

11

     Total - Behavioral Healthcare Services 46,732,770

12

Hospital and Community Rehabilitative Services

13

General Revenues 52,044,891

14

Federal Funds 50,768,748

15

Restricted Receipts 4,535,481

16

Other Funds

17

     Rhode Island Capital Plan Funds

18

     Hospital Equipment 500,000

19

     Total - Hospital and Community Rehabilitative Services 107,849,120

20

State of RI Psychiatric Hospital

21

General Revenues 35,149,422

22

     Grand Total - Behavioral Healthcare,

23

     Developmental Disabilities and Hospitals 706,308,616

24

Office of the Child Advocate

25

General Revenues 1,641,426

26

Commission on the Deaf and Hard of Hearing

27

General Revenues 782,651

28

Restricted Receipts 131,533

29

     Grand Total - Comm. On Deaf and Hard-of-Hearing 914,184

30

Governor’s Commission on Disabilities

31

General Revenues

32

General Revenues 763,664

33

     Livable Home Modification Grant Program 765,304

34

     Provided that this will be used for home modification and accessibility enhancements to

 

LC004143 - Page 20 of 226

1

construct, retrofit, and/or renovate residences to allow individuals to remain in community settings.

2

This will be in consultation with the Executive Office of Health and Human Services. All

3

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

4

ensuing fiscal year, and made immediately available for the same purpose.

5

Federal Funds 85,000

6

Restricted Receipts 66,539

7

     Grand Total - Governor’s Commission on Disabilities 1,680,507

8

Office of the Mental Health Advocate

9

General Revenues 981,608

10

Elementary and Secondary Education

11

Administration of the Comprehensive Education Strategy

12

General Revenues 49,074,536

13

     Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s

14

Hospital pursuant to Rhode Island General Law, Section 16-7-20 and that $395,000 be allocated to

15

support child opportunity zones through agreements with the Department of Elementary and

16

Secondary Education to strengthen education, health and social services for students and their

17

families as a strategy to accelerate student achievement and further provided that $450,000 and 3.0

18

full-time equivalent positions be allocated to support a special education function to facilitate

19

individualized education program (IEP) and 504 services; and further provided that $130,000 be

20

allocated to City Year for the Whole School Whole Child Program, which provides individualized

21

support to at-risk students.

22

Federal Funds

23

Federal Funds 268,652,215

24

     Provided that $684,000 from the Department’s administrative share of Individuals with

25

Disabilities Education Act funds be allocated to the Paul V. Sherlock Center on Disabilities to

26

support the Rhode Island Vision Education and Services Program.

27

Federal Funds – State Fiscal Recovery Fund

28

     Adult Education Providers 127,822

29

Restricted Receipts

30

     Restricted Receipts 1,654,727

31

     HRIC Adult Education Grants 3,500,000

32

     Total - Admin. of the Comprehensive Ed. Strategy 323,009,300

33

Davies Career and Technical School

34

General Revenues 17,562,853

 

LC004143 - Page 21 of 226

1

Federal Funds 1,287,045

2

Restricted Receipts 4,667,353

3

Other Funds

4

     Rhode Island Capital Plan Funds

5

     Davies School HVAC 50,000

6

     Davies School Asset Protection 750,000

7

     Davies School Wing Renovation 30,000,000

8

     Total - Davies Career and Technical School 54,317,251

9

RI School for the Deaf

10

General Revenues 8,675,430

11

Federal Funds 254,316

12

Restricted Receipts 570,169

13

Other Funds

14

     School for the Deaf Transformation Grants 59,000

15

     Rhode Island Capital Plan Funds

16

     School for the Deaf Asset Protection 167,648

17

     Total - RI School for the Deaf 9,726,563

18

Metropolitan Career and Technical School

19

General Revenues 10,741,033

20

Other Funds

21

     Rhode Island Capital Plan Funds

22

     MET School Asset Protection 2,000,000

23

     Total - Metropolitan Career and Technical School 12,741,033

24

Education Aid

25

General Revenues 1,190,623,956

26

     Provided that the criteria for the allocation of early childhood funds shall prioritize

27

prekindergarten seats and classrooms for four-year-olds whose family income is at or below one

28

hundred eighty-five percent (185%) of federal poverty guidelines and who reside in communities

29

with higher concentrations of low performing schools.

30

Federal Funds 36,844,747

31

Restricted Receipts 42,626,878

32

     Total - Education Aid 1,270,095,581

33

Central Falls School District

34

General Revenues 48,327,433

 

LC004143 - Page 22 of 226

1

Federal Funds 5,164,409

2

     Total - Central Falls School District 53,491,842

3

School Construction Aid

4

General Revenues

5

     School Housing Aid 106,198,555

6

Teachers' Retirement

7

General Revenues 132,268,922

8

     Grand Total - Elementary and Secondary Education 1,961,849,047

9

Public Higher Education

10

Office of Postsecondary Commissioner

11

General Revenues 30,622,180

12

     Provided that $355,000 shall be allocated to the Rhode Island College Crusade pursuant to

13

the Rhode Island General Law, Section 16-70-5, $75,000 shall be allocated to Best Buddies Rhode

14

Island to support its programs for children with developmental and intellectual disabilities. It is also

15

provided that $7,878,650 shall be allocated to the Rhode Island Promise Scholarship program,

16

$151,410 shall be used to support Rhode Island’s membership in the New England Board of Higher

17

Education, $3,375,500 shall be allocated to the Rhode Island Hope Scholarship Program, and

18

$200,000 shall be allocated to the Rhode Island School for Progressive Education to support access

19

to higher education opportunities for teachers of color.

20

Federal Funds

21

     Federal Funds 4,900,773

22

     Guaranty Agency Administration 60,000

23

Restricted Receipts 7,854,557

24

Other Funds

25

     Tuition Savings Program - Scholarships and Grants 3,500,000

26

     Nursing Education Center - Operating 3,120,498

27

     Rhode Island Capital Plan Funds

28

     WEC Expansion - Annex Site 1,220,000

29

     Total - Office of Postsecondary Commissioner 51,278,008

30

University of Rhode Island

31

General Revenues

32

     General Revenues 108,750,396

33

     Provided that in order to leverage federal funding and support economic development,

34

$700,000 shall be allocated to the Small Business Development Center, $100,000 shall be allocated

 

LC004143 - Page 23 of 226

1

to the Institute for Labor Studies & Research and that $50,000 shall be allocated to Special

2

Olympics Rhode Island to support its mission of providing athletic opportunities for individuals

3

with intellectual and developmental disabilities.

4

     Debt Service 31,664,061

5

     RI State Forensics Laboratory 1,784,983

6

Other Funds

7

     University and College Funds 794,703,980

8

     Debt - Dining Services 744,765

9

     Debt - Education and General 6,850,702

10

     Debt - Health Services 118,345

11

     Debt - Housing Loan Funds 14,587,677

12

     Debt - Memorial Union 91,202

13

     Debt - Ryan Center 2,377,246

14

     Debt - Parking Authority 531,963

15

     URI Restricted Debt Service - Energy Conservation 524,431

16

     URI Debt Service - Energy Conservation 1,914,069

17

     Rhode Island Capital Plan Funds

18

     Asset Protection 14,006,225

19

     Mechanical, Electric, and Plumbing Improvements 7,858,588

20

     Fire Protection Academic Buildings 3,311,666

21

     Bay Campus 6,000,000

22

     Athletics Complex 8,882,689

23

     Provided that total Rhode Island Capital Plan funds provide no more than 80.0 percent of

24

the total project.

25

     Stormwater Management 2,221,831

26

     Fine Arts Center Renovation 8,000,000

27

     PFAS Removal Water Treatment Plant 1,015,192

28

     Total - University of Rhode Island 1,015,940,011

29

     Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

30

unencumbered balances as of June 30, 2025 relating to the University of Rhode Island are hereby

31

reappropriated to fiscal year 2026.

32

Rhode Island College

33

General Revenues

34

     General Revenues 69,702,836

 

LC004143 - Page 24 of 226

1

     Debt Service 8,178,392

2

Other Funds

3

     University and College Funds 107,027,705

4

     Debt - Education and General 714,519

5

     Debt - Student Union 207,150

6

     Debt - G.O. Debt Service 1,602,610

7

     Debt - Energy Conservation 742,700

8

     Rhode Island Capital Plan Funds

9

     Asset Protection 5,785,000

10

     Infrastructure Modernization 5,675,000

11

     Master Plan Phase III 10,000,000

12

     Phase IV: Whipple Hall 500,000

13

     Total - Rhode Island College 210,135,912

14

     Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

15

unencumbered balances as of June 30, 2025 relating to Rhode Island College are hereby

16

reappropriated to fiscal year 2026.

17

Community College of Rhode Island

18

General Revenues

19

     General Revenues 60,231,829

20

     Debt Service 1,054,709

21

Restricted Receipts 814,584

22

Other Funds

23

     University and College Funds 104,016,119

24

     Rhode Island Capital Plan Funds

25

     Asset Protection 2,719,452

26

     Data, Cabling, and Power Infrastructure 3,700,000

27

     Flanagan Campus Renovations 5,700,000

28

     CCRI Renovation and Modernization Phase I 16,000,000

29

     CCRI Accessibility Improvements 200,000

30

     Total - Community College of RI 194,436,693

31

     Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or

32

unencumbered balances as of June 30, 2025 relating to the Community College of Rhode Island

33

are hereby reappropriated to fiscal year 2026.

34

     Grand Total - Public Higher Education 1,471,790,624

 

LC004143 - Page 25 of 226

1

RI State Council on the Arts

2

General Revenues

3

     Operating Support 1,205,211

4

     Grants 1,190,000

5

     Provided that $400,000 be provided to support the operational costs of WaterFire

6

Providence art installations.

7

Federal Funds 996,126

8

Other Funds

9

     Art for Public Facilities 585,000

10

     Grand Total - RI State Council on the Arts 3,976,337

11

RI Atomic Energy Commission

12

General Revenues 1,180,419

13

Restricted Receipts 25,036

14

Other Funds

15

     URI Sponsored Research 338,456

16

     Rhode Island Capital Plan Funds

17

     Asset Protection 50,000

18

     Grand Total - RI Atomic Energy Commission 1,593,911

19

RI Historical Preservation and Heritage Commission

20

General Revenues 1,898,100

21

     Provided that $30,000 support the operational costs of the Fort Adams Trust’s restoration

22

activities and that $25,000 shall be allocated to Rhode Island Slave History Medallions.

23

Federal Funds 1,267,431

24

Restricted Receipts 419,300

25

Other Funds

26

     RIDOT Project Review 142,829

27

     Grand Total - RI Historical Preservation and Heritage Comm. 3,727,660

28

Attorney General

29

Criminal

30

General Revenues 21,173,986

31

Federal Funds 3,231,773

32

Restricted Receipts 1,473,682

33

     Total - Criminal 25,879,441

34

Civil

 

LC004143 - Page 26 of 226

1

General Revenues 7,005,430

2

Restricted Receipts 2,616,629

3

     Total - Civil 9,622,059

4

Bureau of Criminal Identification

5

General Revenues 2,164,423

6

Federal Funds 33,332

7

Restricted Receipts 2,847,793

8

     Total - Bureau of Criminal Identification 5,045,548

9

General

10

General Revenues 4,759,579

11

Other Funds

12

     Rhode Island Capital Plan Funds

13

     Building Renovations and Repairs 150,000

14

     Total - General 4,909,579

15

     Grand Total - Attorney General 45,456,627

16

Corrections

17

Central Management

18

General Revenues 22,522,753

19

     The Department of Corrections shall conduct a study to evaluate recidivism trends and

20

outcomes of existing correctional programs intended to promote rehabilitation and reduce

21

recidivism. The report shall include, but not be limited to, historical recidivism rates including

22

demographic data, and regional comparisons; prison population projections and driving factors; an

23

inventory of evidence-based rehabilitative practices and programs; and a review of Correctional

24

Industries and its alignment to workforce needs. On or before March 1, 2025, the Department of

25

Corrections must submit a report to the governor, the speaker of the house and the president of the

26

senate including a summary, relevant data and findings, and recommendations to reduce recidivism.

27

Parole Board

28

General Revenues 1,526,785

29

Custody and Security

30

General Revenues 163,902,830

31

Federal Funds 1,333,277

32

Other Funds

33

     Rhode Island Capital Plan Funds

34

     DOC HVAC 23,946,648

 

LC004143 - Page 27 of 226

1

     Total - Custody and Security 189,182,755

2

Institutional Support

3

General Revenues 34,243,329

4

Other Funds

5

     Rhode Island Capital Plan Funds

6

     Asset Protection 4,100,000

7

     Correctional Facilities – Renovations 3,179,677

8

     Total - Institutional Support 41,523,006

9

Institutional Based Rehab/Population Management

10

General Revenues 14,780,027

11

     Provided that $1,050,000 be allocated to Crossroads Rhode Island for sex offender

12

discharge planning.

13

     The director of the department of corrections shall provide to the speaker of the house and

14

president of the senate at least every ninety (90) days beginning September 1, 2022, a report on

15

efforts to modernize the correctional industries program. The report shall, at minimum, provide

16

data on the past ninety (90) days regarding program participation, changes made in programming

17

to more closely align with industry needs, new or terminated partnerships with employers,

18

nonprofits, and advocacy groups, current program expenses and revenues, and the employment

19

status of all persons on the day of discharge from department care who participated in the

20

correctional industries program.

21

Federal Funds 455,919

22

Restricted Receipts 44,800

23

     Total - Institutional Based Rehab/Population Mgt. 15,280,746

24

Healthcare Services

25

General Revenues 34,782,837

26

Restricted Receipts 1,331,555

27

     Total - Healthcare Services 36,114,392

28

Community Corrections

29

General Revenues 21,987,526

30

Federal Funds 30,639

31

Restricted Receipts 10,488

32

     Total - Community Corrections 22,028,653

33

     Grand Total - Corrections 328,179,090

34

Judiciary

 

LC004143 - Page 28 of 226

1

Supreme Court

2

General Revenues

3

     General Revenues 35,882,258

4

     Provided however, that no more than $1,375,370 in combined total shall be offset to the

5

Public Defender’s Office, the Attorney General’s Office, the Department of Corrections, the

6

Department of Children, Youth and Families, and the Department of Public Safety for square-

7

footage occupancy costs in public courthouses and further provided that $230,000 be allocated to

8

the Rhode Island Coalition Against Domestic Violence for the domestic abuse court advocacy

9

project pursuant to Rhode Island General Law, Section 12-29-7 and that $90,000 be allocated to

10

Rhode Island Legal Services, Inc. to provide housing and eviction defense to indigent individuals.

11

     Defense of Indigents 6,075,432

12

Federal Funds 123,424

13

Restricted Receipts 4,182,232

14

Other Funds

15

     Rhode Island Capital Plan Funds

16

     Judicial Complexes - HVAC 500,000

17

     Judicial Complexes Asset Protection 2,250,000

18

     Judicial Complexes Fan Coil Unit Replacements 500,000

19

     Garrahy Courthouse Restoration 1,125,000

20

     Total - Supreme Court 50,638,346

21

Judicial Tenure and Discipline

22

General Revenues 174,997

23

Superior Court

24

General Revenues 27,995,998

25

Restricted Receipts 665,000

26

     Total - Superior Court 28,660,998

27

Family Court

28

General Revenues 26,940,842

29

Federal Funds 3,678,496

30

     Total - Family Court 30,619,338

31

District Court

32

General Revenues 16,384,243

33

Federal Funds 616,036

34

Restricted Receipts 60,000

 

LC004143 - Page 29 of 226

1

     Total - District Court 17,060,279

2

Traffic Tribunal

3

General Revenues 10,812,491

4

Workers' Compensation Court

5

Restricted Receipts 9,931,788

6

     Grand Total - Judiciary 147,898,237

7

Military Staff

8

General Revenues 3,106,655

9

Federal Funds 86,857,534

10

Restricted Receipts

11

     RI Military Family Relief Fund 55,000

12

Other Funds

13

     Rhode Island Capital Plan Funds

14

     Aviation Readiness Center 3,294,818

15

     Asset Protection 1,799,185

16

     Quonset Airport Runway Reconstruction 1,339,988

17

     Quonset Air National Guard HQ Facility 3,000,000

18

     Counter-Drug Training Facility 2,000,000

19

     Grand Total - Military Staff 101,453,180

20

Public Safety

21

Central Management

22

General Revenues 1,418,898

23

Federal Funds 15,542,257

24

Restricted Receipts 309,252

25

     Total - Central Management 17,270,407

26

E-911 Emergency Telephone System

27

Restricted Receipts 11,103,966

28

Security Services

29

General Revenues 30,711,397

30

Municipal Police Training Academy

31

General Revenues 299,114

32

Federal Funds 417,455

33

     Total - Municipal Police Training Academy 716,569

34

State Police

 

LC004143 - Page 30 of 226

1

General Revenues 89,994,631

2

Federal Funds 6,784,981

3

Restricted Receipts 1,096,000

4

Other Funds

5

     Airport Corporation Assistance 150,630

6

     Road Construction Reimbursement 3,354,650

7

     Weight and Measurement Reimbursement 248,632

8

     Rhode Island Capital Plan Funds

9

     DPS Asset Protection 2,125,000

10

     Southern Barracks 20,000,000

11

     Training Academy Upgrades 1,250,000

12

     Statewide Communications System Network 245,048

13

     Total - State Police 125,249,572

14

     Grand Total - Public Safety 185,051,911

15

Office of Public Defender

16

General Revenues 15,835,559

17

Federal Funds 85,035

18

     Grand Total - Office of Public Defender 15,920,594

19

Emergency Management Agency

20

General Revenues 7,165,529

21

Federal Funds 28,880,583

22

Restricted Receipts 412,371

23

Other Funds

24

     Rhode Island Capital Plan Funds

25

     RI Statewide Communications Infrastructure 140,000

26

     State Emergency Ops Center 80,000

27

     Grand Total - Emergency Management Agency 36,678,483

28

Environmental Management

29

Office of the Director

30

General Revenues 8,944,403

31

     Of this general revenue amount, $100,000 is appropriated to the Conservation Districts and

32

$100,000 is appropriated to the Wildlife Rehabilitators Association of Rhode Island for a

33

veterinarian at the Wildlife Clinic of Rhode Island.

34

Federal Funds 40,100

 

LC004143 - Page 31 of 226

1

Restricted Receipts 4,894,237

2

     Total - Office of the Director 13,878,740

3

Natural Resources

4

General Revenues 32,363,741

5

     Provided that of this general revenue amount, $150,000 is to be used for marine mammal

6

response activities in conjunction with matching federal funds.

7

Federal Funds 23,602,130

8

Restricted Receipts 6,078,419

9

Other Funds

10

     DOT Recreational Projects 762,000

11

     Blackstone Bike Path Design 1,000,000

12

     Rhode Island Capital Plan Funds

13

     Dam Repair 10,186,000

14

     Fort Adams Rehabilitation 300,000

15

     Port of Galilee 11,500,000

16

     Newport Pier Upgrades 500,000

17

     Recreation Facilities Asset Protection 750,000

18

     Recreational Facilities Improvements 5,729,077

19

     Natural Resources Office and Visitor's Center 250,000

20

     Fish & Wildlife Maintenance Facilities 200,000

21

     Marine Infrastructure/Pier Development 650,000

22

     Total - Natural Resources 93,871,367

23

Environmental Protection

24

General Revenues 15,870,312

25

Federal Funds 12,377,846

26

Restricted Receipts 10,332,134

27

Other Funds

28

     Transportation MOU 41,769

29

     Total - Environmental Protection 38,622,061

30

     Grand Total - Environmental Management 146,372,168

31

Coastal Resources Management Council

32

General Revenues 3,607,384

33

Federal Funds 2,319,579

34

Restricted Receipts 250,000

 

LC004143 - Page 32 of 226

1

     Grand Total - Coastal Resources Mgmt. Council 6,176,963

2

Transportation

3

Central Management

4

Federal Funds 15,122,388

5

Other Funds

6

     Gasoline Tax 8,265,215

7

     Total - Central Management 23,387,603

8

Management and Budget

9

Other Funds

10

     Gasoline Tax 4,243,682

11

Infrastructure Engineering

12

Federal Funds

13

Federal Funds 402,650,393

14

Federal Funds – State Fiscal Recovery Funds

15

     Municipal Roads Grant Program 5,000,000

16

     RIPTA Operating Grant 10,000,000

17

     The Rhode Island Public Transit Authority shall conduct a thorough review of its transit

18

operations and administration. The aim of this review is to uncover ways to enhance efficiency and

19

streamline costs, ensuring a more effective use of resources. This evaluation shall encompass a

20

range of areas, including but not limited to, a comprehensive analysis of the fixed-route service.

21

Analysis should include operating expenses, ridership figures, cost per rider, and other pertinent

22

data across all routes and serviced regions. A review focusing on the cost-effectiveness of the

23

agency’s diverse transit services will be a key component of this study. Additionally, the study

24

shall explore different transit service delivery models, incorporating successful strategies from

25

other transit systems; financial planning strategies; agency management structure, capital plan

26

development and funding strategies; project management; and Transit Master Plan scope and

27

schedule. By January 1, 2025, the Rhode Island Public Transit Authority shall compile and present

28

a report to the governor, the speaker of the house, and the president of the senate. This report will

29

summarize the findings of the study and include recommendations aimed at fostering sustainable

30

and effective transit operations.

31

Restricted Receipts 6,116,969

32

Other Funds

33

Gasoline Tax 72,301,225

34

     Toll Revenue 1,500,000

 

LC004143 - Page 33 of 226

1

     Land Sale Revenue 6,568,333

2

     Rhode Island Capital Plan Funds

3

     Highway Improvement Program 121,102,060

4

     Bike Path Asset Protection 400,000

5

     RIPTA - Land and Buildings 11,214,401

6

     RIPTA - Pawtucket/Central Falls Bus Hub Passenger Facility 3,424,529

7

     Total - Infrastructure Engineering 640,277,910

8

Infrastructure Maintenance

9

Other Funds

10

     Gasoline Tax 39,544,619

11

     The department of transportation will establish a Municipal Roadway Database, which will

12

include information concerning the name, condition, length, roadway infrastructure, and pedestrian

13

features of each municipal roadway, updated annually by municipalities. The database will serve

14

as a comprehensive and transparent list of municipal roadway conditions.

15

     Rhode Island Highway Maintenance Account 105,190,431

16

     Rhode Island Capital Plan Funds

17

     Maintenance Capital Equipment Replacement 1,800,000

18

     Maintenance Facilities Improvements 500,000

19

     Welcome Center 150,000

20

     Salt Storage Facilities 1,150,000

21

     Train Station Asset Protection 475,585

22

     Total - Infrastructure Maintenance 148,810,635

23

     Grand Total - Transportation 816,719,830

24

Statewide Totals

25

General Revenues 5,500,088,983

26

Federal Funds 4,929,239,756

27

Restricted Receipts 450,860,737

28

Other Funds 2,795,864,892

29

     Statewide Grand Total 13,676,054,368

30

     SECTION 2. Each line appearing in Section 1 of this Article shall constitute an

31

appropriation.

32

     SECTION 3. Upon the transfer of any function of a department or agency to another

33

department or agency, the Governor is hereby authorized by means of executive order to transfer

34

or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected

 

LC004143 - Page 34 of 226

1

thereby; provided, however, in accordance with Rhode Island General Law, Section 42-6-5, when

2

the duties or administrative functions of government are designated by law to be performed within

3

a particular department or agency, no transfer of duties or functions and no re-allocation, in whole

4

or part, or appropriations and full-time equivalent positions to any other department or agency shall

5

be authorized.

6

     SECTION 4. From the appropriation for contingency shall be paid such sums as may be

7

required at the discretion of the Governor to fund expenditures for which appropriations may not

8

exist. Such contingency funds may also be used for expenditures in the several departments and

9

agencies where appropriations are insufficient, or where such requirements are due to unforeseen

10

conditions or are non-recurring items of an unusual nature. Said appropriations may also be used

11

for the payment of bills incurred due to emergencies or to any offense against public peace and

12

property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as

13

amended. All expenditures and transfers from this account shall be approved by the Governor.

14

     SECTION 5. The general assembly authorizes the state controller to establish the internal

15

service accounts shown below, and no other, to finance and account for the operations of state

16

agencies that provide services to other agencies, institutions and other governmental units on a cost

17

reimbursed basis. The purpose of these accounts is to ensure that certain activities are managed in

18

a businesslike manner, promote efficient use of services by making agencies pay the full costs

19

associated with providing the services, and allocate the costs of central administrative services

20

across all fund types, so that federal and other non-general fund programs share in the costs of

21

general government support. The controller is authorized to reimburse these accounts for the cost

22

of work or services performed for any other department or agency subject to the following

23

expenditure limitations:

24

     Account Expenditure Limit

25

     State Assessed Fringe Benefit Internal Service Fund 36,946,270

26

     Administration Central Utilities Internal Service Fund 30,029,111

27

     State Central Mail Internal Service Fund 8,419,019

28

     State Telecommunications Internal Service Fund 3,748,530

29

     State Automotive Fleet Internal Service Fund 15,496,081

30

     Surplus Property Internal Service Fund 44,789

31

     Health Insurance Internal Service Fund 272,804,635

32

     Other Post-Employment Benefits Fund 63,854,008

33

     Capitol Police Internal Service Fund 1,466,975

34

     Corrections Central Distribution Center Internal Service Fund 7,659,339

 

LC004143 - Page 35 of 226

1

     Correctional Industries Internal Service Fund 8,247,332

2

     Secretary of State Record Center Internal Service Fund 1,166,547

3

     Human Resources Internal Service Fund 17,669,248

4

     DCAMM Facilities Internal Service Fund 53,327,083

5

     Information Technology Internal Service Fund 62,092,295

6

     SECTION 6. The director of the department of administration shall exercise his powers

7

under R.I. Gen. Laws Chapter 42-11 to centralize state fleet operations under the department as it

8

relates to light and medium duty vehicle management, in accordance with best practices.

9

     SECTION 7. Legislative Intent - The General Assembly may provide a written "statement

10

of legislative intent" signed by the chairperson of the House Finance Committee and by the

11

chairperson of the Senate Finance Committee to show the intended purpose of the appropriations

12

contained in Section 1 of this Article. The statement of legislative intent shall be kept on file in the

13

House Finance Committee and in the Senate Finance Committee.

14

     At least twenty (20) days prior to the issuance of a grant or the release of funds, which

15

grant or funds are listed on the legislative letter of intent, all department, agency and corporation

16

directors, shall notify in writing the chairperson of the House Finance Committee and the

17

chairperson of the Senate Finance Committee of the approximate date when the funds are to be

18

released or granted.

19

     SECTION 8. Appropriation of Temporary Disability Insurance Funds -- There is hereby

20

appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all funds

21

required to be disbursed for the benefit payments from the Temporary Disability Insurance Fund

22

and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2025.

23

     SECTION 9. Appropriation of Employment Security Funds -- There is hereby appropriated

24

pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed

25

for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 2025.

26

     SECTION 10. Appropriation of Lottery Division Funds -- There is hereby appropriated to

27

the Lottery Division any funds required to be disbursed by the Lottery Division for the purposes of

28

paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2025.

29

     SECTION 11. Appropriation of CollegeBoundSaver Funds - There is hereby appropriated

30

to the Office of the General Treasurer designated funds received under the CollegeBoundSaver

31

program for transfer to the Division of Higher Education Assistance within the Office of the

32

Postsecondary Commissioner to support student financial aid for the fiscal year ending June 30,

33

2025.

34

     SECTION 12. Departments and agencies listed below may not exceed the number of full-

 

LC004143 - Page 36 of 226

1

time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do

2

not include limited period positions or, seasonal or intermittent positions whose scheduled period

3

of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not

4

exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period. Nor

5

do they include individuals engaged in training, the completion of which is a prerequisite of

6

employment. Provided, however, that the Governor or designee, Speaker of the House of

7

Representatives or designee, and the President of the Senate or designee may authorize an

8

adjustment to any limitation. Prior to the authorization, the State Budget Officer shall make a

9

detailed written recommendation to the Governor, the Speaker of the House, and the President of

10

the Senate. A copy of the recommendation and authorization to adjust shall be transmitted to the

11

chairman of the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor,

12

and the Senate Fiscal Advisor.

13

     State employees whose funding is from non-state general revenue funds that are time

14

limited shall receive limited term appointment with the term limited to the availability of non-state

15

general revenue funding source.

16

FY 2025 FTE POSITION AUTHORIZATION

17

     Departments and Agencies Full-Time Equivalent

18

     Administration 683.6

19

     Provided that no more than 419.1 of the total authorization would be limited to positions

20

that support internal service fund programs.

21

     Business Regulation 181.0

22

     Executive Office of Commerce 5.0

23

     Housing 38.0

24

     Labor and Training 461.7

25

     Revenue 599.5

26

     Legislature 298.5

27

     Office of the Lieutenant Governor 8.0

28

     Office of the Secretary of State 61.0

29

     Office of the General Treasurer 91.0

30

     Board of Elections 13.0

31

     Rhode Island Ethics Commission 12.0

32

     Office of the Governor 45.0

33

     Commission for Human Rights 15.0

34

     Public Utilities Commission 56.0

 

LC004143 - Page 37 of 226

1

     Office of Health and Human Services 233.0

2

     Children, Youth and Families 714.5

3

     Health 572.6

4

     Human Services 779.0

5

     Office of Veterans Services 267.0

6

     Office of Healthy Aging 33.0

7

     Behavioral Healthcare, Developmental Disabilities and Hospitals 1,203.4

8

     Office of the Child Advocate 10.0

9

     Commission on the Deaf and Hard of Hearing 4.0

10

     Governor’s Commission on Disabilities 5.0

11

     Office of the Mental Health Advocate 6.0

12

     Elementary and Secondary Education 153.1

13

     School for the Deaf 61.0

14

     Davies Career and Technical School 123.0

15

     Office of Postsecondary Commissioner 46.0

16

     Provided that 1.0 of the total authorization would be available only for positions that are

17

supported by third-party funds, 12.0 would be available only for positions at the State’s Higher

18

Education Centers located in Woonsocket and Westerly, 10.0 would be available only for positions

19

at the Nursing Education Center, and 7.0 would be available for the longitudinal data systems

20

program.

21

     University of Rhode Island 2,551.0

22

     Provided that 353.8 of the total authorization would be available only for positions that are

23

supported by third-party funds.

24

     Rhode Island College 949.2

25

     Provided that 76.0 of the total authorization would be available only for positions that are

26

supported by third-party funds.

27

     Community College of Rhode Island 849.1

28

     Provided that 89.0 of the total authorization would be available only for positions that are

29

supported by third-party funds.

30

     Rhode Island State Council on the Arts 10.0

31

     RI Atomic Energy Commission 8.6

32

     Historical Preservation and Heritage Commission 15.6

33

     Office of the Attorney General 264.1

34

     Corrections 1,461.0

 

LC004143 - Page 38 of 226

1

     Judicial 745.3

2

     Military Staff 93.0

3

     Emergency Management Agency 39.0

4

     Public Safety 633.0

5

     Office of the Public Defender 104.0

6

     Environmental Management 437.0

7

     Coastal Resources Management Council 32.0

8

     Transportation 755.0

9

     Total 15,725.8

10

     No agency or department may employ contracted employee services where contract

11

employees would work under state employee supervisors without determination of need by the

12

Director of Administration acting upon positive recommendations by the Budget Officer and the

13

Personnel Administrator and 15 days after a public hearing.

14

     Nor may any agency or department contract for services replacing work done by state

15

employees at that time without determination of need by the Director of Administration acting upon

16

the positive recommendations of the State Budget Officer and the Personnel Administrator and 30

17

days after a public hearing.

18

     SECTION 13. The amounts reflected in this Article include the appropriation of Rhode

19

Island Capital Plan funds for fiscal year 2025 and supersede appropriations provided for FY 2025

20

within Section 12 of Article 1 of Chapter 79 of the P.L. of 2023.

21

     The following amounts are hereby appropriated out of any money in the State’s Rhode

22

Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending

23

June 30, 2026, June 30, 2027, June 30, 2028, and June 30, 2029. These amounts supersede

24

appropriations provided within Section 12 of Article 1 of Chapter 79 of the P.L. of 2023.

25

     For the purposes and functions hereinafter mentioned, the State Controller is hereby

26

authorized and directed to draw his or her orders upon the General Treasurer for the payment of

27

such sums and such portions thereof as may be required by him or her upon receipt of properly

28

authenticated vouchers.

29

      FY Ending FY Ending FY Ending FY Ending

30

     Project 06/30/2026 06/30/2027 06/30/2028 06/30/2029

31

DOA - 560 Jefferson Boulevard Asset Protection 50,000 50,000 50,000 50,000

32

DOA – Arrigan Center 200,000 100,000 100,000 100,000

33

DOA – Big River Management Area 797,000 746,000 742,000 792,000

34

DOA – Cannon Building 1,050,000 3,925,000 4,225,000 4,225,000

 

LC004143 - Page 39 of 226

1

DOA – Chapin Health Laboratory 350,000 300,00 0 0

2

DOA – Civic Center 3,800,000 1,250,000 1,075,000 1,500,000

3

DOA – Communities Facilities Asset Protection 225,000 125,000 125,000 125,000

4

DOA - Cranston Street Armory 1,600,000 100,000 100,000 100,000

5

DOA - DoIT Enterprise Operations Center 2,050,000 200,000 200,000 200,000

6

DOA – Energy Efficiency Improvements 1,000,000 1,000,000 1,000,000 1,000,000

7

DOA – Environmental Compliance 225,000 225,000 225,000 225,000

8

DOA – Group Homes Consolidation 4,325,000 4,325,000 4,426,000 5,450,000

9

DOA – Medical Examiners - New Facility 50,000 50,000 50,000 50,000

10

DOA – Old State House 600,000 600,000 100,000 100,000

11

DOA - Pastore Campus Infrastructure 25,000,000 25,000,000 15,000,000 8,500,000

12

DOA - Pastore Center Hospital Buildings 4,500,000 2,500,000 500,000 500,000

13

DOA - Pastore Center Non-Hospital Buildings 7,750,000 4,500,000 4,600,000 4,600,000

14

DOA - Pastore Power Plant Rehabilitation 250,000 5,250,000 0 0

15

DOA – Replacement of Fueling Tanks 620,000 100,000 100,000 0

16

DOA - RI Convention Center Authority 2,800,000 2,825,000 2,500,000 2,000,000

17

DOA - Shepard Building Upgrades 555,000 3,920,000 8,125,000 4,785,000

18

DOA – State Building Security Measures 700,000 650,000 600,000 600,000

19

DOA - State House Renovations 1,759,000 17,379,000 16,000,000 31,940,000

20

DOA – State Office Building 250,000 550,000 300,000 50,000

21

DOA – State Office Reorganization & Relocation 250,000 250,000 250,000 250,000

22

DOA – Veterans’ Auditorium 380,000 100,000 100,000 100,000

23

DOA – Washington County Government Center 600,000 150,000 150,000 150,000

24

DOA - William Powers Building 2,200,000 2,350,000 1,850,000 1,700,000

25

DOA - Zambarano Buildings and Campus 2,850,000 250,000 900,000 900,000

26

DOA – Zambarano LTAC Hospital 26,065,740 23,804,439 24,427,656 24,155,740

27

DBR – Fire Academy Expansion 675,000 0 0 0

28

EOC – I-195 Redevelopment Commission 700,000 700,000 700,000 0

29

EOC – Quonset Infrastructure 2,500,000 2,500,000 0 0

30

SOS – Rhode Island Archives and History Center 3,901,863 2,340,693 0 0

31

DCYF – Training School Asset Protection 250,000 250,000 250,000 250,000

32

DCYF - Residential Treatment Facility 15,000,000 0 0 0

33

DOH – Laboratory Building 8,363,883 0 0 0

34

DOH – Health Laboratories & Medical

 

LC004143 - Page 40 of 226

1

Examiner Equipment 400,000 400,000 400,000 400,000

2

DHS – Blind Vending Facilities 165,000 165,000 165,000 165,000

3

DHS – Veterans Home Asset Protection 1,550,000 1,525,000 1,525,000 500,000

4

DHS – Veterans’ Memorial Cemetery Asset

5

Protection 300,000 250,000 300,000 250,000

6

BHDDH – Hospital Equipment 300,000 300,000 300,000 300,000

7

ELSEC – Davies School Asset Protection 750,000 500,000 500,000 511,000

8

ELSEC – Davies School HVAC 50,000 50,000 50,000 50,000

9

ELSEC - Davies School Wing Renovation 2,500,000 0 0 0

10

ELSEC - MET School Asset Protection 250,000 250,000 255,000 255,000

11

ELSEC – School for the Deaf Asset Protection 100,000 100,000 100,000 305,600

12

URI - Asset Protection 14,606,536 15,236,863 15,528,074 15,885,220

13

URI - Athletics Complex 51,532,096 0 0 0

14

URI - Bay Campus 12,500,000 12,500,000 0 0

15

URI – PFAS Removal Water Treatment Plant 14,102,455 4,369,853 0 0

16

URI – Mechanical, Electric and Plumbing

17

Improvements 8,607,757 86,605 0 0

18

URI – Stormwater Management 2,221,831 0 0 0

19

RIC - Asset Protection 5,950,000 6,025,000 6,157,000 6,375,000

20

RIC - Infrastructure Modernization 5,675,000 5,675,000 5,925,000 5,925,000

21

RIC – Phase IV: Whipple Hall 1,500,000 16,500,000 0 0

22

CCRI - Asset Protection 2,719,452 2,719,452 2,780,000 2,870,000

23

CCRI – Accessibility Improvements 340,00 340,000 0 0

24

CCRI – Data, Cabling, & Power Infrastructure 4,650,000 4,394,885 2,000,000 0

25

CCRI – Flanagan Campus Renovations 3,200,000 1,734,505 0 0

26

CCRI – Renovation and Modernization Phase I 16,000,000 6,084,928 0 0

27

CCRI – Renovation and Modernization

28

Phase II -IV 5,000,000 0 0 0

29

AOC – Atomic Energy Asset Protection 50,000 50,000 50,000 50,000

30

AG – Building Renovations and Repairs 2,525,000 1,150,000 900,000 150,000

31

DOC – Asset Protection 4,100,000 4,100,000 4,100,000 4,100,000

32

DOC – Correctional Facilities – Renovations 7,419,248 0 0 0

33

DOC – HVAC 10,272,500 0 0 0

34

Judiciary - Judicial Complexes Asset Protection 1,500,000 1,500,000 1,500,000 1,500,000

 

LC004143 - Page 41 of 226

1

Judiciary - Garrahy Courthouse Renovation 1,125,000 1,125,000 0 0

2

Judiciary – Judicial Complexes HVAC 500,000 500,000 500,000 500,000

3

Judiciary –Licht Window and Masonry Repairs 0 0 1,500,000 1,545,000

4

Judiciary –Fan Coil Unit Replacements 500,000 750,000 850,000 500,000

5

Military Staff – Asset Protection 962,185 1,301,316 863,505 1,357,288

6

Military Staff – Counter Drug Training

7

Facility 1,025,250 0 0 0

8

Military Staff – Repair Squadron Ops

9

Facility 600,000 0 0 0

10

Military Staff - Quonset Airport

11

Runway Reconstruction 446,663 0 0 0

12

DPS – Asset Protection 1,205,000 1,335,000 285,000 300,000

13

DPS - Southern Barracks 12,700,000 0 0 0

14

DPS – Training Academy Upgrades 1,820,000 640,000 150,000 150,000

15

DPS – Statewide Communications

16

System Network 245,048 0 0 0

17

EMA – RISCON Infrastructure Upgrade 40,000 15,000 15,000 0

18

DEM – Dam Repair 6,815,000 2,265,000 1,015,000 1,015,000

19

DEM – Fort Adams Trust Rehabilitation 500,000 500,000 500,000 500,000

20

DEM – Recreational Facilities Asset Protection 750,000 750,000 765,000 765,000

21

DEM – Fish and Wildlife Maintenance Facilities 200,000 200,000 200,000 200,000

22

DEM – Natural Resources Offices and

23

Visitor's Center 1,836,709 1,836,709 0 0

24

DEM – Newport Piers & Building Project 500,000 500,000 0 0

25

DEM – Port of Galilee 16,500,000 14,113,820 2,800,000

26

DEM – Recreational Facilities Improvements 2,900,000 3,338,551 3,260,000 2,750,000

27

CRMC – Confined Aquatic Dredged

28

Material Disposal Cells 20,600,000 0 0 0

29

CRMC – South Coast Restoration Project 0 2,000,000 0 0

30

DOT – Bike Path Asset Protection 400,000 400,000 400,000 400,000

31

DOT - Highway Improvement Program 27,200,000 27,200,000 27,200,000 27,200,000

32

DOT - Maintenance Capital Equipment

33

Replacement 1,800,000 1,800,000 1,800,000 1,800,000

34

DOT – Maintenance Facilities Improvements 859,756 500,000 1,375,000 500,000

 

LC004143 - Page 42 of 226

1

DOT - Salt Storage Facilities 1,150,000 1,150,000 1,500,000 1,500,000

2

DOT – Train Station Asset Protection 500,000 500,000 500,000 500,000

3

DOT – Welcome Center 150,000 150,000 150,000 0

4

DOT - RIPTA Land and Buildings 4,561,885 500,000 500,000 500,000

5

DOT - RIPTA Pawtucket/Central Falls

6

Bus Hub Passenger Facility 627,977 0 0 0

7

     SECTION 14. Reappropriation of Funding for Rhode Island Capital Plan Fund Projects.

8

Any unexpended and unencumbered funds from Rhode Island Capital Plan Fund project

9

appropriations shall be reappropriated in the ensuing fiscal year and made available for the same

10

purpose. However, any such reappropriations are subject to final approval by the General Assembly

11

as part of the supplemental appropriations act. Any unexpended funds of less than five hundred

12

dollars ($500) shall be reappropriated at the discretion of the State Budget Officer.

13

     SECTION 15. For the Fiscal Year ending June 30, 2025, the Rhode Island Housing and

14

Mortgage Finance Corporation shall provide from its resources such sums as appropriate in support

15

of the Neighborhood Opportunities Program. The Corporation shall provide a report detailing the

16

amount of funding provided to this program, as well as information on the number of units of

17

housing provided as a result to the Director of Administration, the Chair of the Housing Resources

18

Commission, the Chair of the House Finance Committee, the Chair of the Senate Finance

19

Committee, and the State Budget Officer.

20

     SECTION 16. Appropriation of Economic Activity Taxes in accordance with the city of

21

Pawtucket downtown redevelopment statute -- There is hereby appropriated for the fiscal year

22

ending June 30, 2025, all State Economic Activity Taxes to be collected pursuant to § 45-33.4-4 of

23

the Rhode Island General Laws, as amended (including, but not limited to, the amount of tax

24

revenues certified by the Commerce Corporation in accordance with § 45-33.4-1(13) of the Rhode

25

Island General Laws), for the purposes of paying debt service on bonds, funding debt service

26

reserves, paying costs of infrastructure improvements in and around the ballpark district, arts

27

district, and the growth center district, funding future debt service on bonds, and funding a

28

redevelopment revolving fund established in accordance with § 45-33-1 of the Rhode Island

29

General Laws.

30

     SECTION 17. The appropriations from federal funds contained in Section 1 shall not be

31

construed to mean any federal funds or assistance appropriated, authorized, allocated or

32

apportioned to the State of Rhode Island from the State Fiscal Recovery Fund and Capital Projects

33

Fund enacted pursuant to the American Rescue Plan Act of 2021, P.L. 117-2 for fiscal year 2025

34

except for those instances specifically designated.

 

LC004143 - Page 43 of 226

1

     The State Fiscal Recovery Fund and Capital Projects Fund appropriations herein shall be

2

made in support of the following projects:

3

     Federal Funds - State Fiscal Recovery Fund

4

     Department of Administration (DOA)

5

     DOA - Pandemic Recovery Office. These funds shall be allocated to finance the Pandemic

6

Recovery Office established within the Department of Administration.

7

     DOA - Public Health Response Warehouse Support. These funds shall be allocated to the

8

proper storage of PPE and other necessary COVID-19 response related supplies.

9

     DOA – Health Care Facilities. These funds shall address the ongoing staffing needs of

10

nursing facilities related to the COVID-19 public health emergency. $10.0 million shall be

11

distributed to nursing facilities based on the number of Medicaid beds days from the 2022 facility

12

cost reports, provided at least 80 percent is dedicated to direct care workers.

13

     DOA – Community Learning Center Programming Support Grant. These funds shall be

14

distributed to municipalities that have approved community learning center projects under the

15

coronavirus capital projects fund community learning center municipal grant program. An equal

16

amount of funding will be allocated to each approved community learning center project that

17

reaches substantial completion as defined by the U.S. Department of Treasury by October 31, 2026.

18

These funds must be used to support the establishment of U.S. Department of the Treasury

19

compliant health monitoring, work, and or education programming that will take place in a

20

community learning center.

21

     Executive Office of Commerce (EOC)

22

     EOC – Assistance to Impacted Industries. These funds shall be allocated to provide

23

assistance to the tourism, hospitality, and events industries for outdoor and public space capital

24

improvements and event programming.

25

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

26

(BHDDH)

27

     BHDDH - 9-8-8 Hotline. These funds shall be allocated for the creation and operation of a

28

9-8-8 hotline to maintain compliance with the National Suicide Hotline Designation Act of 2020

29

and the Federal Communications Commission-adopted rules to assure that all citizens receive a

30

consistent level of 9-8-8 and crisis behavioral health services.

31

     Rhode Island Department of Elementary and Secondary Education (ELSEC)

32

     RIDE - Adult Education Providers. These funds shall be directly distributed through the

33

Office of Adult Education to nonprofit adult education providers to expand access to educational

34

programs and literary services.

 

LC004143 - Page 44 of 226

1

     Department of Transportation (DOT)

2

     DOT - Municipal Roads Grant Program. These funds shall support a program to distribute

3

grants with a required local match for the replacement, rehabilitation, preservation, and

4

maintenance of existing roads, sidewalks, and bridges. These funds shall be distributed equally to

5

each city and town provided that each municipality is required to provide a 67 percent match. 

6

     DOT - RIPTA Operating Grant. These funds shall provide operating support to the Rhode

7

Island public transit authority.

8

     Federal Funds - Capital Projects Fund

9

     Department of Administration (DOA)

10

     DOA - CPF Administration. These funds shall be allocated to the department of

11

administration to oversee the implementation of the Capital Projects Fund award from the

12

American Rescue Plan Act.

13

     SECTION 18. Reappropriation of Funding for State Fiscal Recovery Fund and Capital

14

Projects Fund. Notwithstanding any provision of general law, any unexpended and unencumbered

15

federal funds from the State Fiscal Recovery Fund and Capital Projects Fund shall be

16

reappropriated in the ensuing fiscal year and made available for the same purposes. However, any

17

such reappropriations are subject to final approval by the General Assembly as part of the

18

supplemental appropriations act.

19

     SECTION 19. The pandemic recovery office shall monitor the progress and performance

20

of all programs financed by the State Fiscal Recovery Fund and the Capital Projects Fund. On or

21

before October 31, 2023, and quarterly thereafter until and including October 31, 2024, the office

22

shall provide a report to the speaker of the house and senate president, with copies to the

23

chairpersons of the house and senate finance committees, identifying programs that are at risk of

24

significant underspending or noncompliance with federal or state requirements. The report, at a

25

minimum must include an assessment of how programs that are at risk can be remedied. In the

26

event that any State Fiscal Recovery Fund program would put the state at risk of forfeiture of federal

27

funds, the governor may reallocate funding from the at-risk program to the unemployment

28

insurance trust fund.

29

     SECTION 20. This article shall take effect as of July 1, 2024, except as otherwise provided

30

herein.

 

LC004143 - Page 45 of 226

1

ARTICLE 2

2

RELATING TO STATE FUNDS

3

     SECTION 1. Effective July 1, 2023, section 35-3-20.2 of the General Laws in Chapter 35-

4

3 entitled "State Budget" is hereby amended to read as follows:

5

     35-3-20.2. Supplemental state budget reserve account.

6

     (a) There is hereby created within the general fund a supplemental state budget reserve

7

account, which shall be administered by the state controller and which shall be used solely for the

8

purpose of providing such sums as may be appropriated to fund any unanticipated general revenue

9

deficit caused by a general revenue shortfall.

10

     (b) At any time after the third quarter of a fiscal year that it is indicated that total resources

11

which are defined to be the aggregate of estimated general revenue, general revenue receivables,

12

and available free surplus in the general fund will be less than the estimates upon which current

13

appropriations were based, the general assembly may make appropriations from the supplemental

14

state budget reserve account for the difference between the estimated total resources and the

15

original estimates upon which enacted appropriations were based, but only in the amount of the

16

difference based upon the revenues projected at the latest state revenue estimating conference

17

pursuant to chapter 16 of this title as reported by the chairperson of that conference.

18

     (c) Whenever a transfer has been made pursuant to subsection (b), that transfer shall be

19

considered as estimated general revenues for the purposes of determining the amount to be

20

transferred to the Rhode Island Capital Plan fund for the purposes of § 35-3-20.1(b).

21

     (d) The supplemental state budget reserve account shall consist of: (1) Ssuch sums as the

22

state may from time to time directly transfer to the account as authorized in law; and (2) Any

23

amounts transferred pursuant to § 35-6-1(e).

24

     SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds”

25

is hereby amended to read as follows:

26

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

27

     Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all

28

restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there

29

shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions

30

from nonprofit charitable organizations; (2) From the assessment of indirect cost-recovery rates on

31

federal grant funds; or (3) Through transfers from state agencies to the department of administration

32

for the payment of debt service. These indirect cost recoveries shall be applied to all accounts,

33

unless prohibited by federal law or regulation, court order, or court settlement. The following

34

restricted receipt accounts shall not be subject to the provisions of this section:

 

LC004143 - Page 46 of 226

1

     Executive Office of Health and Human Services

2

     Organ Transplant Fund

3

     HIV Care Grant Drug Rebates

4

     Health System Transformation Project

5

     Rhode Island Statewide Opioid Abatement Account

6

     HCBS Support-ARPA

7

     HCBS Admin Support-ARPA

8

     Department of Human Services

9

     Veterans’ home — Restricted account

10

     Veterans’ home — Resident benefits

11

     Pharmaceutical Rebates Account

12

     Demand Side Management Grants

13

     Veteran’s Cemetery Memorial Fund

14

     Donations — New Veterans’ Home Construction

15

     Commodity Supplemental Food Program- Claims

16

     Department of Health

17

     Pandemic medications and equipment account

18

     Miscellaneous Donations/Grants from Non-Profits

19

     State Loan Repayment Match

20

     Healthcare Information Technology

21

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

22

     Eleanor Slater non-Medicaid third-party payor account

23

     Hospital Medicare Part D Receipts

24

     RICLAS Group Home Operations

25

     Group Home Facility Improvement Fund

26

     Commission on the Deaf and Hard of Hearing

27

     Emergency and public communication access account

28

     Department of Environmental Management

29

     National heritage revolving fund

30

     Environmental response fund II

31

     Underground storage tanks registration fees

32

     De Coppet Estate Fund

33

     Rhode Island Historical Preservation and Heritage Commission

34

     Historic preservation revolving loan fund

 

LC004143 - Page 47 of 226

1

     Historic Preservation loan fund — Interest revenue

2

     Department of Public Safety

3

     E-911 Uniform Emergency Telephone System

4

     Forfeited property — Retained

5

     Forfeitures — Federal

6

     Forfeited property — Gambling

7

     Donation — Polygraph and Law Enforcement Training

8

     Rhode Island State Firefighter’s League Training Account

9

     Fire Academy Training Fees Account

10

     Attorney General

11

     Forfeiture of property

12

     Federal forfeitures

13

     Attorney General multi-state account

14

     Forfeited property — Gambling

15

     Department of Administration

16

     OER Reconciliation Funding

17

     Health Insurance Market Integrity Fund

18

     RI Health Benefits Exchange

19

     Information Technology restricted receipt account

20

     Restore and replacement — Insurance coverage

21

     Convention Center Authority rental payments

22

     Investment Receipts — TANS

23

     OPEB System Restricted Receipt Account

24

     Car Rental Tax/Surcharge-Warwick Share

25

     Grants Management Administration

26

     RGGI-Executive Climate Change Coordinating Council Projects

27

     Electric Vehicle Charging Stations Operating and Maintenance Account

28

     Executive Office of Commerce

29

     Housing Resources Commission Restricted Account

30

     Housing Production Fund

31

     Department of Revenue

32

     DMV Modernization Project

33

     Jobs Tax Credit Redemption Fund

34

     Legislature

 

LC004143 - Page 48 of 226

1

     Audit of federal assisted programs

2

     Department of Children, Youth and Families

3

     Children’s Trust Accounts — SSI

4

     Military Staff

5

     RI Military Family Relief Fund

6

     RI National Guard Counterdrug Program

7

     Treasury

8

     Admin. Expenses — State Retirement System

9

     Retirement — Treasury Investment Options

10

     Defined Contribution — Administration - RR

11

     Violent Crimes Compensation — Refunds

12

     Treasury Research Fellowship

13

     Business Regulation

14

     Banking Division Reimbursement Account

15

     Office of the Health Insurance Commissioner Reimbursement Account

16

     Securities Division Reimbursement Account

17

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

18

     Insurance Division Reimbursement Account

19

     Historic Preservation Tax Credit Account

20

     Marijuana Trust Fund

21

     Social Equity Assistance Fund

22

     Judiciary

23

     Arbitration Fund Restricted Receipt Account

24

     Third-Party Grants

25

     RI Judiciary Technology Surcharge Account

26

     Department of Elementary and Secondary Education

27

     Statewide Student Transportation Services Account

28

     School for the Deaf Fee-for-Service Account

29

     School for the Deaf — School Breakfast and Lunch Program

30

     Davies Career and Technical School Local Education Aid Account

31

     Davies — National School Breakfast & Lunch Program

32

     School Construction Services

33

     Office of the Postsecondary Commissioner

34

     Higher Education and Industry Center

 

LC004143 - Page 49 of 226

1

     IGT STEM Scholarships

2

     Department of Labor and Training

3

     Job Development Fund

4

     Rhode Island Council on the Arts

5

     Governors’ Portrait Donation Fund

6

     Statewide records management system account

7

     SECTION 3. Effective July 1, 2023, section 35-6-1 of the General Laws in Chapter 35-6

8

entitled "Accounts and Control” is hereby amended to read as follows:

9

     35-6-1. Controller — Duties in general.

10

     (a) Within the department of administration there shall be a controller who shall be

11

appointed by the director of administration pursuant to chapter 4 of title 36. The controller shall be

12

responsible for accounting and expenditure control and shall be required to:

13

     (1) Administer a comprehensive accounting and recording system that will classify the

14

transactions of the state departments and agencies in accordance with the budget plan;

15

     (2) Maintain control accounts for all supplies, materials, and equipment for all departments

16

and agencies except as otherwise provided by law;

17

     (3) Prescribe a financial, accounting, and cost accounting system for state departments and

18

agencies;

19

     (4) Identify federal grant-funding opportunities to support the governor’s and general

20

assembly’s major policy initiatives and provide technical assistance with the application process

21

and post-award grants management;

22

     (5) Manage federal fiscal proposals and guidelines and serve as the state clearinghouse for

23

the application of federal grants;

24

     (6) Pre-audit all state receipts and expenditures;

25

     (7) Prepare financial statements required by the several departments and agencies, by the

26

governor, or by the general assembly;

27

     (8) Approve the orders drawn on the general treasurer; provided, that the pre-audit of all

28

expenditures under authority of the legislative department and the judicial department by the state

29

controller shall be purely ministerial, concerned only with the legality of the expenditure and

30

availability of the funds, and in no event shall the state controller interpose his or her judgment

31

regarding the wisdom or expediency of any item or items of expenditure;

32

     (9) Prepare and timely file, on behalf of the state, any and all reports required by the United

33

States, including, but not limited to, the Internal Revenue Service, or required by any department

34

or agency of the state, with respect to the state payroll; and

 

LC004143 - Page 50 of 226

1

     (10) Prepare a preliminary closing statement for each fiscal year. The controller shall

2

forward the statement to the chairpersons of the house finance committee and the senate finance

3

committee, with copies to the house fiscal advisor and the senate fiscal and policy advisor, by

4

September 1 following the fiscal year ending the prior June 30 or thirty (30) days after enactment

5

of the appropriations act, whichever is later. The report shall include but is not limited to:

6

     (i) A report of all revenues received by the state in the completed fiscal year, together with

7

the estimates adopted for that year as contained in the final enacted budget, and together with all

8

deviations between estimated revenues and actual collections. The report shall also include cash

9

collections and accrual adjustments;

10

     (ii) A comparison of actual expenditures with each of the actual appropriations, including

11

supplemental appropriations and other adjustments provided for in the Rhode Island general laws;

12

     (iii) A statement of the opening and closing surplus in the general revenue account; and

13

     (iv) A statement of the opening surplus, activity, and closing surplus in the state budget

14

reserve and cash stabilization account and the state bond capital fund.

15

     (b) The controller shall provide supporting information on revenues, expenditures, capital

16

projects, and debt service upon request of the house finance committee chairperson, senate

17

finance committee chairperson, house fiscal advisor, or senate fiscal and policy advisor.

18

     (c) Upon issuance of the audited annual financial statement, the controller shall provide a

19

report of the differences between the preliminary financial report and the final report as contained

20

in the audited annual financial statement.

21

     (d) The controller shall create a special fund not part of the general fund and shall deposit

22

amounts equivalent to all deferred contributions under this act into that fund. Any amounts

23

remaining in the fund on June 15, 2010, shall be transferred to the general treasurer who shall

24

transfer such amounts into the retirement system as appropriate.

25

     (e) Upon issuance of the audited financial statement, the controller shall transfer fifty

26

percent (50%) of all general revenues received in the completed fiscal year net of transfer to the

27

state budget reserve and cash stabilization account as required by § 35-3-20 in excess of those

28

estimates adopted for that year as contained in the final enacted budget to the employees’ retirement

29

system of the state of Rhode Island as defined in § 36-8-2 and fifty percent (50%) to the

30

supplemental state budget reserve account as defined in § 35-3-20.2.

31

     (f) The controller shall implement a direct deposit payroll system for state employees.

32

     (1) There shall be no service charge of any type paid by the state employee at any time

33

which shall decrease the net amount of the employee’s salary deposited to the financial institution

34

of the personal choice of the employee as a result of the use of direct deposit.

 

LC004143 - Page 51 of 226

1

     (2) Employees hired after September 30, 2014, shall participate in the direct deposit

2

system. At the time the employee is hired, the employee shall identify a financial institution that

3

will serve as a personal depository agent for the employee.

4

     (3) No later than June 30, 2016, each employee hired before September 30, 2014, who is

5

not a participant in the direct deposit system, shall identify a financial institution that will serve as

6

a personal depository agent for the employee.

7

     (4) The controller shall promulgate rules and regulations as necessary for implementation

8

and administration of the direct deposit system, which shall include limited exceptions to required

9

participation.

10

     SECTION 4. Sections 37-7-13 and 37-7-15 of the General Laws in Chapter 37-7 entitled

11

“Management and Disposal of Property” are hereby amended to read as follows:

12

     37-7-13. Surplus group homes.

13

     Any group home purchased or built by the state of Rhode Island and licensed pursuant to

14

house § 40.1-24-3, which is no longer used to house persons with disabilities and is vacant for a

15

period of one year must be offered for sale on the private housing market forthwith and shall

16

thereafter remain under the jurisdiction of the zoning enforcement officer and the zoning code of

17

that municipality in which the home is located. The zoning enforcement officer and zoning code

18

shall govern the use thereof. The group home shall not acquire any rights of a nonconforming use.

19

Proceeds from the sale of group homes owned by the state of Rhode Island shall be transferred to

20

the group home facility improvement fund, pursuant to § 40.1-1-22.

21

     37-7-15. Sale of state-owned land, buildings and improvements thereon and other real

22

property.

23

     (a) Total annual proceeds from the sale of any land and the buildings and improvements

24

thereon, and other real property, title to which is vested in the state of Rhode Island or title to which

25

will be vested in the state upon completion of any condemnation or other proceedings, except for

26

the sale of group homes as referenced in § 37-7-13, shall be transferred to the information

27

technology restricted receipt account (ITRR account) and made available for the purposes outlined

28

in § 42-11-2.5(a), unless otherwise prohibited by federal law.

29

     (b) Provided, however, this shall not include proceeds from the sale of any land and the

30

buildings and improvements thereon that will be created by the relocation of interstate route 195,

31

which is sometimes collectively referred to as the “I-195 Surplus Land,” which land is identified

32

in the “Rhode Island Interstate 195 Relocation Surplus Land: Redevelopment and Market Analysis”

33

prepared by CKS Architecture & Urban Design dated 2009, and such term means those certain

34

tracts or parcels of land situated in the city of Providence, county of Providence, state of Rhode

 

LC004143 - Page 52 of 226

1

Island, delineated on that certain plan of land captioned “Improvements to Interstate Route 195,

2

Providence, Rhode Island, Proposed Development Parcel Plans 1 through 10, Scale: 1″=20′, May

3

2010, Bryant Associates, Inc., Engineers-Surveyors-Construction Managers, Lincoln, Rhode

4

Island, Maguire Group, Inc., Architects/Engineers/Planners, Providence, Rhode Island.”

5

     (c) Provided, however, the transfer of proceeds in subsection (a) shall not include proceeds

6

from the sale of state-owned group homes or “community residences” as that term is defined in §

7

40.1-24-1(2) and licensed by the department of behavioral healthcare, developmental disabilities

8

and hospitals. Proceeds from the sale of these properties will be transferred to the group home

9

facility improvement fund, pursuant to § 40.1-1-22.

10

     (c) (d) Subject to the approval of the director of the department of administration, the state

11

controller is authorized to offset any currently recorded outstanding liability on the part of

12

developmental disability organizations (DDOs) to repay previously authorized startup capital

13

advances against the proceeds from the sale of group homes within a fiscal year prior to any sale

14

proceeds being deposited into the information technology investment fund.

15

     SECTION 5. Chapter 40.1-1 of the General Laws entitled “Behavioral Healthcare,

16

Developmental Disabilities and Hospitals” is hereby amended by adding thereto the following

17

section:

18

     40.1-1-22. Group Home Facility Improvement Fund.

19

     There is created within the general fund of the state a restricted receipt account to be known

20

as the “group home facility improvement fund.” Money transferred to this fund shall include, but

21

is not limited to, the proceeds from the surplus of state-owned group home facilities or “community

22

residences” as that term is defined in § 40.1-24-1(2) and licensed by the department of behavioral

23

healthcare, developmental disabilities and hospitals; or, notwithstanding the provisions of §§ 37-7-

24

1 and 37-7-9, rents collected from provider agencies providing services in state-owned group home

25

as defined in § 40.1-24-1(2) and licensed by the department of behavioral healthcare,

26

developmental disabilities and hospitals. All money in the account shall by utilized by the

27

department of behavioral healthcare, developmental disabilities and hospitals (“department”) to

28

fund the ongoing upkeep and maintenance of state-owned facilities as defined by § 40.1-24-1(6).

29

Use of the funds will be directed by the department’s strategic priorities. The group home facility

30

improvement fund shall be exempt from the indirect cost recovery provisions of § 35-4-27.

31

     SECTION 6. Section 42-6.2-3.1 of the General Laws in Chapter 42-6.2 entitled "2021 Act

32

on Climate” is hereby amended to read as follows:

33

     42-6.2-3.1. Funding for the council.

34

     There is hereby established a restricted receipt account in the general fund of the state and

 

LC004143 - Page 53 of 226

1

housed in the budget of the department of administration entitled “RGGI-executive climate change

2

coordinating council projects.” The express purpose of this account is to record receipts and

3

expenditures allocated pursuant to § 23-82-6(a)(7),(8). The state budget officer is hereby authorized

4

to create restricted receipt sub-accounts in any department of state government that receives such

5

funding as directed by the executive climate change coordinating council.

6

     The Rhode Island executive climate change coordinating council shall report annually to

7

the governor and general assembly within one hundred twenty (120) days of the end of each

8

calendar year how the funds were used to achieve the statutory objectives of the 2021 Act on

9

Climate.

10

     SECTION 7. Section 42-11-2.5 of the General Laws in Chapter 42-11 entitled “Department

11

of Administration” is hereby amended to read as follows:

12

     42-11-2.5. Information technology restricted receipt account and large systems

13

initiatives fund.

14

     (a) All sums from the sale of any land and the buildings and improvements thereon, and

15

other real property, title to which is vested in the state, except as provided in §§ 37-7-15(b) and 37-

16

7-15(c) § 37-7-15(b)-(d), shall be transferred to an information technology restricted receipt

17

account (ITRR account) that is hereby established. This ITRR account shall consist of such sums

18

from the sale of any land and the buildings and improvements thereon, and other real property, title

19

to which is vested in the state, except as provided in §§ 37-7-15(b) and 37-7-15(c) § 37-7-15(b)-

20

(d), as well as a share of first response surcharge revenues collected under the provisions of § 39-

21

21.1-14. This ITRR account may also consist of such sums as the state may from time to time

22

appropriate; as well as money received from the disposal of information technology hardware, loan,

23

interest, and service charge payments from benefiting state agencies; as well as interest earnings,

24

money received from the federal government, gifts, bequest, donations, or otherwise from any

25

public or private source. Any such funds shall be exempt from the indirect cost recovery provisions

26

of § 35-4-27.

27

     (1) This ITRR account shall be used for the purpose of acquiring information technology

28

improvements, including, but not limited to: hardware, software, consulting services, and ongoing

29

maintenance and upgrade contracts for state departments and agencies.

30

     (2) The division of enterprise technology strategy and services of the Rhode Island

31

department of administration shall adopt rules and regulations consistent with the purposes of this

32

chapter and chapter 35 of this title, in order to provide for the orderly and equitable disbursement

33

of funds from this ITRR account.

34

     (3) For all requests for proposals that are issued for information technology projects, a

 

LC004143 - Page 54 of 226

1

corresponding information technology project manager shall be assigned.

2

     (b) There is also hereby established a special fund to be known as the large systems

3

initiatives fund (LSI fund), separate and apart from the general fund of the state, to be administered

4

by the chief information officer within the department of administration for the purpose of

5

implementing and maintaining enterprise-wide software projects for executive branch departments.

6

The LSI fund shall consist of such sums as the state may from time to time directly appropriate to

7

the LSI fund. After the completion of any project, the chief digital officer shall inform the state

8

controller of unexpended sums previously transferred to the LSI Fund for that project and the state

9

controller shall subsequently transfer any such unexpended funds to the information technology

10

restricted receipt account.

11

     (c) For any new project initiated using sums expended from the LSI Fund, as part of its

12

budget submission pursuant to § 35-3-4 relative to state fiscal year 2025 and thereafter, the

13

department of administration shall include a statement of project purpose and the estimated project

14

cost.

15

     SECTION 8. Section 42-66-4 of the General Laws in Chapter 42-66 entitled "Office of

16

Healthy Aging” is hereby amended to read as follows:

17

     42-66-4. Duties of the division.

18

     (a) The division shall be the principal agency of the state to mobilize the human, physical,

19

and financial resources available to plan, develop, and implement innovative programs to ensure

20

the dignity and independence of elderly persons, including the planning, development, and

21

implementation of a home- and long-term-care program for the elderly in the communities of the

22

state.

23

     (b)(1) The division shall serve as an advocate for the needs of the adult with a disability as

24

these needs and services overlap the needs and services of elderly persons.

25

     (2) The division shall serve as the state’s central agency for the administration and

26

coordination of a long-term-care entry system, using community-based access points, that will

27

provide the following services related to long-term care: information and referral; initial screening

28

for service and benefits eligibility; and a uniform assessment program for state-supported long-

29

term care.

30

     (3) The division shall investigate reports of elder abuse, neglect, exploitation, or self-

31

neglect and shall provide and/or coordinate protective services.

32

     (c) To accomplish these objectives, the director is authorized:

33

     (1) To provide assistance to communities in solving local problems with regard to elderly

34

persons including, but not limited to, problems in identifying and coordinating local resources to

 

LC004143 - Page 55 of 226

1

serve the needs of elderly persons;

2

     (2) To facilitate communications and the free flow of information between communities

3

and the offices, agencies, and employees of the state;

4

     (3) To encourage and assist communities, agencies, and state departments to plan, develop,

5

and implement home- and long-term care programs;

6

     (4) To provide and act as a clearinghouse for information, data, and other materials relative

7

to elderly persons;

8

     (5) To initiate and carry out studies and analyses that will aid in solving local, regional,

9

and statewide problems concerning elderly persons;

10

     (6) To coordinate those programs of other state agencies designed to assist in the solution

11

of local, regional, and statewide problems concerning elderly persons;

12

     (7) To advise and inform the governor on the affairs and problems of elderly persons in the

13

state;

14

     (8) To exercise the powers and discharge the duties assigned to the director in the fields of

15

health care, nutrition, homemaker services, geriatric day care, economic opportunity, local and

16

regional planning, transportation, and education and pre-retirement programs;

17

     (9) To further the cooperation of local, state, federal, and private agencies and institutions

18

providing for services or having responsibility for elderly persons;

19

     (10) To represent and act on behalf of the state in connection with federal grant programs

20

applicable to programs for elderly persons in the functional areas described in this chapter;

21

     (11) To seek, accept, and otherwise take advantage of all federal aid available to the

22

division, and to assist other agencies of the state, local agencies, and community groups in taking

23

advantage of all federal grants and subventions available for elderly persons and to accept other

24

sources of funds with the approval of the director of administration that shall be deposited as general

25

revenues;

26

     (12) To render advice and assistance to communities and other groups in the preparation

27

and submission of grant applications to state and federal agencies relative to programs for elderly

28

persons;

29

     (13) To review and coordinate those activities of agencies of the state and of any political

30

subdivision of the state at the request of the subdivision, that affect the full and fair utilization of

31

community resources for programs for elderly persons, and initiate programs that will help ensure

32

such utilization;

33

     (14) To encourage the formation of councils on aging and to assist local communities in

34

the development of the councils;

 

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1

     (15) To promote and coordinate daycare facilities for the frail elderly who are in need of

2

supportive care and supervision during the daytime;

3

     (16) To provide and coordinate the delivery of in-home services to the elderly, as defined

4

under the rules and regulations adopted by the office of healthy aging;

5

     (17) To advise and inform the public of the risks of accidental hypothermia;

6

     (18) To establish a clearinghouse for information and education of the elderly citizens of

7

the state, including, but not limited to, and subject to available funding, a web-based caregiver

8

support information center;

9

     (19) [As amended by P.L. 2019, ch. 110, § 2]. To establish and operate, in collaboration

10

with the departments of behavioral health, developmental disabilities and hospitals; human

11

services; and children youth and families regular community agencies supporting caregivers, a

12

statewide family-caregiver support association and a family-caregiver resource network to provide

13

and coordinate family-caregiver training and support services to include counseling and elder

14

caregiver respite services, which shall be subject to available funding, and include home

15

health/homemaker care, adult day services, assisted living, and nursing facility care; and

16

     (19) [As amended by P.L. 2019, ch. 130, § 2]. To establish and operate, in collaboration

17

with the department of behavioral healthcare, developmental disabilities and hospitals; the

18

department of human services; the department of children, youth and families, and community

19

agencies supporting caregivers, a statewide family-caregiver support association and a family-

20

caregiver resource network to provide and coordinate family-caregiver training and support

21

services to include counseling and caregiver respite services, which shall be subject to available

22

funding, and include home health/homemaker care, adult day services, assisted living, and nursing

23

facility care; and

24

     (20) To supervise the citizens’ commission for the safety and care of the elderly created

25

pursuant to the provisions of chapter 1.4 of title 12.

26

     (d) In order to assist in the discharge of the duties of the division, the director may request

27

from any agency of the state information pertinent to the affairs and problems of elderly persons.

28

     (e) There is hereby established within the general fund of the state and housed within the

29

budget of the office of healthy aging a restricted receipt account entitled “Commodity Supplemental

30

Food Program- Claims” to account for funds collected in payment of claims for donated food

31

losses, pursuant to united states department of agriculture guidelines under the commodity

32

supplemental food program. Expenditures from this account shall be utilized by the office solely

33

for the following purposes:

34

     (i) Purchase of replacement foods.

 

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1

     (ii) Payment of administrative costs.

2

     (iii) Replacement of lost or improperly used funds.

3

     (iv) For use as a salvage account in compliance with federal regulations.

4

     SECTION 9. Chapter 42-140 of the General Laws entitled “Rhode Island Energy

5

Resources Act” is hereby amended by adding thereto the following section:

6

     42-140-11. Electric vehicle charging stations operating and maintenance fund.

7

     (a) There is established a restricted receipts account within the general fund of the state, to

8

be known as the "electric vehicle charging stations operating and maintenance account”, to be

9

administered by the office of energy resources for the purposes of installing, operating, and

10

maintaining electric vehicle charging stations on state properties.

11

     (b) Effective January 1, 2025, the office of energy resources shall establish electric vehicle

12

charging station fees for electric vehicle charging stations operating on state properties.

13

     (c) The office of energy resources shall post the proposed charging station fees on its

14

website and solicit public comment for a period of thirty (30) days.

15

     (d) The office of energy resources shall have the authority to allocate funds not utilized in

16

a fiscal year to fulfill the objectives of this section. Funds deposited into the electric vehicle

17

charging stations operating and maintenance account shall be exempt from the indirect cost

18

recovery provisions of R.I. Gen. Laws § 35-4-27.

19

     SECTION 10. Sections 1 and 3 of this Article shall take effect as of July 1, 2023. Section

20

2 and Sections 4 through 9 shall take effect as of July 1, 2024.

 

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1

ARTICLE 3

2

RELATING TO GOVERNMENT REFORM AND REORGANIZATION

3

     SECTION 1. Section 23-1-5.5 of the General Laws in Chapter 23-1 entitled “Department

4

of Health” is hereby amended to read as follows:

5

     23-1-5.5. Annual report.

6

     The department of health shall prepare and issue an annual report on the status of private

7

well water contamination in the state. The report shall be submitted to the governor and the general

8

assembly by January 15th July 1 of each year and shall be made available to the public.

9

     SECTION 2 Section 23-1-9 of the General Laws in Chapter 23-1 entitled “Department of

10

Health” is hereby repealed:

11

     § 23-1-9. Annual report to general assembly.

12

     The director of health shall make an annual report to the general assembly of his or her

13

proceedings during the year ending on the thirty-first (31st) day of December next preceding, with

14

any suggestions in relation to the sanitary laws and interests of the state that he or she shall deem

15

important.

16

     SECTION 3. Section 23-1.1-3 of the General Laws in Chapter 23-1.1 entitled “Division of

17

Occupational Health” is hereby repealed.

18

     23-1.1-3. Annual report.

19

     The director of health shall annually furnish information regarding the activities of the

20

division of occupational health to the director of labor and training for inclusion in the director of

21

labor and training’s annual report to the governor and to the general assembly. The director of

22

health shall also provide information to the director of labor and training for reports to be submitted

23

to the United States Secretary of Labor in the form and from time to time that the secretary of labor

24

and training may require.

25

     SECTION 4. Section 23-6.4-8 of the General Laws in Chapter 23-6.4 entitled “Life-Saving

26

Allergy Medication — Stock Supply of Epinephrine Auto-Injectors — Emergency Administration”

27

is hereby amended to read as follows:

28

     23-6.4-8. Reporting.

29

     An authorized entity that possesses and makes available epinephrine auto-injectors shall

30

submit to the department of health, on a form developed by the department of health, a report of

31

each incident on the authorized entity’s premises that involves the administration of an epinephrine

32

auto-injector. The department of health shall annually publish a report that summarizes and

33

analyzes all reports submitted to it under this section.

34

     SECTION 5. Section 23-12.7-3 of the General Laws in Chapter 23-12.7 entitled “The

 

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1

Breast Cancer Act” is hereby amended to read as follows:

2

     23-12.7-3. Program established.

3

Through funding from the Rhode Island Cancer Council, the Rhode Island

4

department of health is required to establish a program of free mammography screening according

5

to American Cancer Society standards, and, where required, follow-up, diagnostic testing, and case

6

management for women in the state who are uninsured or underinsured.

7

     (b) The screening program shall:

8

     (1) Secure radiology facilities to participate in the screening program;

9

     (2) Pay for screening mammograms;

10

     (3) Ensure that screening results are sent by mail, electronically, or otherwise, to the patient

11

in a timely manner;

12

     (4) Provide diagnostic tests as required to diagnose breast cancer;

13

     (5) Provide case management facilitating appropriate contact to breast surgeons, medical

14

oncologists, and radiation oncologists; and

15

     (6) Provide follow-up support to women who are found to have breast cancer as a result of

16

this screening program.

17

     (c) The director of the Rhode Island department of health is required to provide a quarterly

18

an annual report due to the general assembly on May 15 on the program of free mammography

19

screening, follow-up diagnostic testing and case management, and public education. An advisory

20

committee concerned with advocacy, outreach, and public education shall meet on a quarterly basis

21

and report to the director.

22

     SECTION 6. Section 23-13.7-2 of the General Laws in Chapter 23-12.7 entitled “The

23

Rhode Island Family Home-Visiting Act” is hereby amended to read as follows:

24

     23-13.7-2. Home-visiting system components.

25

     (a) The Rhode Island department of health shall coordinate the system of early childhood

26

home-visiting services in Rhode Island and shall work with the department of human services and

27

department of children, youth and families to identify effective, evidence-based, home-visiting

28

models that meet the needs of vulnerable families with young children.

29

     (b) The Rhode Island department of health shall implement a statewide home-visiting

30

system that uses evidence-based models proven to improve child and family outcomes. Evidence-

31

based, home-visiting programs must follow with fidelity a program model with comprehensive

32

standards that ensure high-quality service delivery, use research-based curricula, and have

33

demonstrated significant positive outcomes in at least two (2) of the following areas:

34

     (1) Improved prenatal, maternal, infant, or child health outcomes;

 

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1

     (2) Improved safety and reduced child maltreatment and injury;

2

     (3) Improved family economic security and self-sufficiency;

3

     (4) Enhanced early childhood development (social-emotional, language, cognitive,

4

physical) to improve children’s readiness to succeed in school.

5

     (c) The Rhode Island department of health shall implement a system to identify and refer

6

families prenatally, or as early after the birth of a child as possible, to voluntary, evidence-based,

7

home-visiting programs. The referral system shall prioritize families for services based on risk

8

factors known to impair child development, including:

9

     (1) Adolescent parent(s);

10

     (2) History of prenatal drug or alcohol abuse;

11

     (3) History of child maltreatment, domestic abuse, or other types of violence;

12

     (4) Incarcerated parent(s);

13

     (5) Reduced parental cognitive functioning or significant disability;

14

     (6) Insufficient financial resources to meet family needs;

15

     (7) History of homelessness; or

16

     (8) Other risk factors as determined by the department.

17

     (d) Beginning on or before October 1, 2016, and annually thereafter, tThe Rhode Island

18

department of health shall issue a state home-visiting report due annually by March 1 of each year

19

that outlines the components of the state’s family home-visiting system that shall be made publicly

20

available on the department’s website. The report shall include:

21

     (1) The number of families served by each evidence-based model; and

22

     (2) Demographic data on families served; and

23

     (3) Duration of participation of families; and

24

     (4) Cross-departmental coordination; and

25

     (5) Outcomes related to prenatal, maternal, infant and child health, child maltreatment,

26

family economic security, and child development and school readiness; and

27

     (6) An annual estimate of the number of children born to Rhode Island families who face

28

significant risk factors known to impair child development, and a plan including the fiscal costs

29

and benefits to gradually expand access to the existing evidence-based, family home-visiting

30

programs in Rhode Island to all vulnerable families.

31

     (e) State appropriations for this purpose shall be combined with federal dollars to fund the

32

expansion of evidence-based, home-visiting programs, with the goal of offering the program to all

33

the state’s pregnant and parenting teens; families with a history of involvement with the child

34

welfare system; and other vulnerable families.

 

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1

     SECTION 7. Section 23-18.16-4 of the General Laws in Chapter 23-18.16 entitled

2

“Newspaper Recyclability” is hereby amended to read as follows:

3

     23-18.16-4. Reporting – Determination of compliance – Orders – Appeals.

4

     (a) The department shall annually report to the governor and the general assembly, all

5

findings regarding publications both in compliance and not in compliance with the requirements of

6

this chapter.

7

     (b) The department must by July 1 of each year produce a written determination on any

8

publication that does not comply with the provision of this chapter.

9

     (c) (a) All publications will report on an annual basis their annual rate of purchase of post

10

consumer materials to the department of environmental management. A person adversely affected

11

or aggrieved by the issuance of an order under the provisions of this section may seek judicial

12

review of an order in the superior courts.

13

     SECTION 8. Section 23-19.10-11 of the General Laws in Chapter 23-19.10 entitled

14

“Hazardous Waste Reduction, Recycling, and Treatment Research and Demonstration Act of 1986”

15

is hereby repealed.

16

     23-19.10-11. Report to the governor and the general assembly.

17

     (a) The department shall annually report to the governor and the general assembly on the

18

status, funding, and results of all demonstration and research projects awarded grants.

19

     (b) This report shall include recommendations for legislation and shall identify those state

20

and federal economic and financial incentives which can best accelerate and maximize the research,

21

development, and demonstration of hazardous waste reduction, recycling, and treatment

22

technologies.

23

     SECTION 9. Section 23-20.11-4 of the General Laws in Chapter 23-20.11 entitled

24

“Reduced Cigarette Ignition Propensity and Firefighter Protection” is hereby amended to read as

25

follows:

26

     23-20.11-4. Standards for cigarette fire safety.

27

     (a) No cigarettes may be sold or offered for sale in this state or offered for sale or sold to

28

persons located in this state unless such cigarettes have been tested in accordance with the test

29

method and meet the performance standard specified in this subsection; and a written certification

30

has been filed by the manufacturer with the director in accordance with § 23-20.11-5 of this act;

31

and the cigarettes have been marked in accordance with § 23-20.11-6 of this act.

32

     (1) Testing of cigarettes shall be conducted in accordance with the American Society of

33

Testing and Materials (“ASTM”) standard E2187-04 “Standard Test Method for Measuring the

34

Ignition Strength of Cigarettes.”

 

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1

     (2) Testing shall be conducted on ten (10) layers of filter paper.

2

     (3) No more than twenty-five percent (25%) of the cigarettes tested in a test trial in

3

accordance with this subsection shall exhibit full-length burns. Forty (40) replicate tests shall

4

comprise a complete test trial for each cigarette tested.

5

     (4) The performance standard required by this subsection shall only be applied to a

6

complete test trial.

7

     (5) Written certifications shall be based upon testing conducted by a laboratory that has

8

been accredited pursuant to Standard ISO/IEC 17025 of the International Organization for

9

Standardization (“ISO”), or other comparable accreditation standard required by the director.

10

     (6) Laboratories conducting testing in accordance with this subsection shall implement a

11

quality control and quality assurance program that includes a procedure to determine the

12

repeatability of the testing results. The repeatability value shall be no greater than nineteen

13

hundredths (0.19).

14

     (7) This section does not require additional testing if cigarettes are tested consistent with

15

this chapter for any other purpose.

16

     (8) Testing performed or sponsored by the director to determine a cigarette’s compliance

17

with the performance standard required by this section shall be conducted in accordance with this

18

section.

19

     (b) Each cigarette listed in a certification submitted pursuant to § 23-20.11-5 of this act that

20

uses lowered permeability bands in the cigarette paper to achieve compliance with the performance

21

standard set forth in this section shall have at least two (2) nominally identical bands on the paper

22

surrounding the tobacco column. At least one complete band shall be located at least fifteen (15)

23

millimeters from the lighting end of the cigarette. For cigarettes on which the bands are positioned

24

by design, there shall be at least two (2) bands fully located at least fifteen (15) millimeters from

25

the lighting end and ten (10) millimeters from the filter end of the tobacco column, or ten (10)

26

millimeters from the labeled end of the tobacco column for a nonfiltered cigarette.

27

     (c) The manufacturer or manufacturers of a cigarette that the director determines cannot be

28

tested in accordance with the test method prescribed in subsection 23-20.11-4(a) shall propose a

29

test method and performance standard for such cigarette to the director. Upon approval of the

30

proposed test method and a determination by the director that the performance standard proposed

31

by the manufacturer or manufacturers is equivalent to the performance standard prescribed in

32

subsection 23-20.11-4(a), the manufacturer or manufacturers may employ such test method and

33

performance standard to certify such cigarette pursuant to § 23-20.11-5 of this act. If the director

34

determines that another state has enacted reduced cigarette ignition propensity standards that

 

LC004143 - Page 63 of 226

1

include a test method and performance standard that are the same as those contained in this section,

2

and the director finds that the officials responsible for implementing those requirements have

3

approved the proposed alternative test method and performance standard for a particular cigarette

4

proposed by a manufacturer as meeting the reduced cigarette ignition propensity standards of that

5

state’s law or regulation under a legal provision comparable to this subsection, then the director

6

shall authorize that manufacturer to employ the alternative test method and performance standard

7

to certify that cigarette for sale in this state, unless the director demonstrates a reasonable basis why

8

the alternative test should not be accepted under this chapter. All other applicable requirements of

9

this section shall apply to such manufacturer or manufacturers.

10

     (d) Each manufacturer shall maintain copies of the reports of all tests conducted on all

11

cigarettes offered for sale for a period of three (3) years, and shall make copies of these reports

12

available to the director and the attorney general upon written request. Any manufacturer who fails

13

to make copies of these reports available within sixty (60) days of receiving a written request shall

14

be subject to a civil penalty not to exceed ten thousand dollars ($10,000) for each day after the

15

sixtieth (60th) day that the manufacturer does not make such copies available.

16

     (e) The director may adopt a subsequent ASTM Standard Test Method for Measuring the

17

Ignition Strength of Cigarettes upon a finding that such subsequent method does not result in a

18

change in the percentage of full-length burns exhibited by any tested cigarette when compared to

19

the percentage of full-length burns the same cigarette would exhibit when tested in accordance with

20

ASTM Standard E2187-04 and the performance standard prescribed in subsection 23-20.11-4(a).

21

     (f) As of January 1, 2010, and at least every three (3) years thereafter, the director shall

22

review of the effectiveness of this section and report to the legislature the director’s finding’s and,

23

if appropriate, recommendations for legislation to improve the effectiveness of this section. The

24

report and legislative recommendations shall be submitted no later than January 1 of each three (3)

25

year period.

26

     (gf) This chapter shall be implemented in accordance with the implementation and

27

substance of the New York Fire Safety Standards for Cigarettes.

28

     SECTION 10. Sections 23-24.12-2 and 23-24.12-3 of the General Laws in Chapter 23-

29

24.12 entitled “Proper Management of Unused Paint” are hereby amended to read as follows:

30

     23-24.12-2. Management of unused architectural paint — Definitions.

31

     (1) “Architectural paint” means interior and exterior architectural coatings sold in

32

containers of five (5) gallons or less. Architectural paint does not include industrial, original

33

equipment or specialty coatings.

34

     (2) “Department” means the department of environmental management.

 

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1

     (3) “Director” means the director of the department of environmental management.

2

     (4) “Distributor” means a company that has a contractual relationship with one or more

3

producers to market and sell architectural paint to retailers in this state.

4

     (5) “Environmentally sound management practices” means procedures for the collection,

5

storage, transportation, reuse, recycling and disposal of architectural paint, to be implemented by

6

the representative implementing organization or such representative implementing organization’s

7

contracted partners to ensure compliance with all applicable federal, state and local laws,

8

regulations and ordinances and the protection of human health and the environment.

9

Environmentally sound management practices include, but are not limited to, record keeping, the

10

tracking and documenting of the use and disposition of post-consumer paint in and outside of this

11

state, and environmental liability coverage for professional services and for the operations of the

12

contractors working on behalf of the representative implementing organization.

13

     (6) “Paint stewardship assessment” means the amount added to the purchase price of

14

architectural paint sold in this state that is necessary to cover the cost of collecting, transporting

15

and processing post-consumer paint by the representative implementing organization pursuant to

16

the paint stewardship program.

17

     (7) “Post-consumer paint” means architectural paint that is not used and that is no longer

18

wanted by a purchaser of architectural paint.

19

     (8) “Producer” means a manufacturer of architectural paint who sells, offers for sale,

20

distributes or contracts to distribute architectural paint in this state.

21

     (9) “Recycling” means any process by which discarded products, components and by-

22

products are transformed into new, usable or marketable materials in a manner in which the original

23

products may lose their identity.

24

     (10) “Representative Implementing organization” means the nonprofit organization created

25

by producers selected by the department to implement the paint stewardship program described in

26

§ 23-24.11-3 23-24.12-3.

27

     (11) “Retailer” means any person who offers architectural paint for sale at retail in this

28

state.

29

     (12) “Reuse” means the return of a product into the economic stream for use in the same

30

kind of application as the product was originally intended to be used, without a change in the

31

product’s identity.

32

     (13) “Sell” or “sale” means any transfer of title for consideration including, but not limited

33

to, remote sales conducted through sales outlets, catalogues, the Internet or any other similar

34

electronic means.

 

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1

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

2

     (a) On or before March 1, 2014, each producer shall join the representative organization

3

and such representative organization shall submit a plan for the establishment of a paint stewardship

4

program to the department for approval. The program shall minimize the public sector involvement

5

in the management of post-consumer paint by reducing the generation of post-consumer paint,

6

negotiating agreements to collect, transport, reuse, recycle, and/or burn for energy recovery at an

7

appropriately licensed facility post-consumer paint using environmentally sound management

8

practices. No later than June 30, 2025, and every five years thereafter, unless otherwise delegated

9

to the department by the chief purchasing officer, the division of purchases shall issue a solicitation

10

seeking an organization or entity to implement and administer the paint stewardship program as

11

described in this section. The solicitation shall be conducted in accordance with State Purchases

12

Act, R.I. Gen. Laws 37-2-1 et seq. The paint stewardship program in effect at the time that this

13

statute is enacted shall remain in effect until such time as an organization or entity is selected by

14

the department to administer the program.

15

     (b) The program shall also provide for convenient and available state-wide collection of

16

post-consumer paint that, at a minimum, provides for collection rates and convenience greater than

17

the collection programs available to consumers prior to such paint stewardship program; propose a

18

paint stewardship assessment; include a funding mechanism that requires each producer who

19

participates in the representative organization to remit to the representative organization payment

20

of the paint stewardship assessment for each container of architectural paint sold within the state;

21

include an education and outreach program to help ensure the success of the program; and, work

22

with the department and Rhode Island commerce corporation to identify ways in which the state

23

can motivate local infrastructure investment, business development and job creation related to the

24

collection, transportation and processing of post-consumer paint. Each proposal submitted to the

25

department shall include, at a minimum, the following elements:

26

     (1) Recommendations to minimize the public sector involvement in the management of

27

post-consumer paint by reducing the generation of post-consumer paint, negotiating agreements to

28

collect, transport, reuse, recycle, and/or burn for energy recovery at an appropriately licensed

29

facility post-consumer paint using environmentally sound management practices.

30

     (2) A proposed program that will provide for convenient and available state-wide collection

31

of post-consumer paint that, at a minimum, provides for collection rates and convenience greater

32

than the collection programs available to consumers prior to such paint stewardship program;

33

propose a paint stewardship assessment; include a funding mechanism that requires each producer

34

to remit to the implementing organization payment of the paint stewardship assessment for each

 

LC004143 - Page 66 of 226

1

container of architectural paint sold within the state; include an education and outreach program to

2

help ensure the success of the program; and, work with the department and Rhode Island commerce

3

corporation to identify ways in which the state can motivate local infrastructure investment,

4

business development and job creation related to the collection, transportation and processing of

5

post-consumer paint.

6

     (c) The plan submitted to the department pursuant to this section shall Each proposal shall

7

also:

8

     (1) Identify each producer participating that will participate in the paint stewardship

9

program and the brands of architectural paint sold in this state covered by the program;

10

     (2) Identify how the representative implementing organization will provide convenient,

11

statewide accessibility to the program;

12

     (3) Set forth the process by which an independent auditor will be selected and identify the

13

criteria used by the representative implementing organization in selecting an independent auditor;

14

     (4) Identify, in detail, the educational and outreach program that will be implemented to

15

inform consumers and retailers of the program and how to participate;

16

     (5) Identify the methods and procedures under which the paint stewardship program will

17

be coordinated with the Rhode Island resource recovery corporation;

18

     (6) Identify, in detail, the operational plans for interacting with retailers on the proper

19

handling and management of post-consumer paint;

20

     (7) Include the proposed, audited paint assessment as identified in this section;

21

     (8) Include the targeted annual collection rate;

22

     (9) Include a description of the intended treatment, storage, transportation and disposal

23

options and methods for the collected post-consumer paint; and

24

     (10) Be accompanied by a fee in the amount of two thousand five hundred dollars ($2,500)

25

to be deposited into the environmental response fund to cover the review of said plan by the

26

department.

27

     (d) Not later than sixty (60) days after submission of a plan pursuant to this section, the

28

department shall make a determination whether to:

29

     (1) Approve the plan as submitted;

30

     (2) Approve the plan with conditions; or

31

     (3) Deny the plan.

32

     (e) Not later than three (3) months after the date the plan is approved, the representative

33

organization shall implement the paint stewardship program.

34

     (fd) On or before March 1, 2014, the representative organization Each proposal shall

 

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1

propose a uniform paint stewardship assessment for all architectural paint sold in this state. The

2

proposed paint stewardship assessment shall be sufficient to cover the costs of administering the

3

program. The assessment may also be used to create a reserve fund, provided that such reserve fund

4

shall not exceed 50% of projected program costs in any given year. If the reserve fund is projected

5

to exceed 50% of projected program costs, the implementing organization shall immediately

6

propose to the department an amendment to the approved plan which will reduce the paint

7

stewardship assessment in the following calendar year by an amount sufficient to cause the reserve

8

fund to not exceed 50% of projected program costs. The department shall have the authority to cap

9

administrative expenses at a percentage of program costs as part of any contract awarded to

10

administer the paint stewardship program. Such proposed paint stewardship assessment shall be

11

reviewed by an independent auditor to assure that such assessment is consistent with the budget of

12

the paint stewardship program described in this section and such independent auditor shall

13

recommend an amount for such paint stewardship assessment to the department. The department

14

shall be responsible for the approval of such paint stewardship assessment based upon the

15

independent auditor’s recommendation. If the paint stewardship assessment previously approved

16

by the department pursuant to this section is proposed to be changed, the representative

17

organization shall submit the new, adjusted uniform paint stewardship assessment to an

18

independent auditor for review. After such review has been completed, the representative

19

organization shall submit the results of said auditor’s review and a proposal to amend the paint

20

stewardship assessment to the department for review. The department shall review and approve, in

21

writing, the adjusted paint stewardship assessment before the new assessment can be implemented.

22

Any proposed changes to the paint stewardship assessment shall be submitted to the department no

23

later than sixty (60) days prior to the date the representative organization anticipates the adjusted

24

assessment to take effect.

25

     (ge) On and after the date of implementation of the paint stewardship program pursuant to

26

this section, the paint stewardship assessment shall be added to the cost of all architectural paint

27

sold to retailers and distributors in this state by each producer. On and after such implementation

28

date, each retailer or distributor, as applicable, shall add the amount of such paint stewardship

29

assessment to the purchase price of all architectural paint sold in this state.

30

     (hf) Any retailer may participate, on a voluntary basis, as a paint collection point pursuant

31

to such paint stewardship program and in accordance with any applicable provision of law or

32

regulation.

33

     (ig) Each producer and the representative implementing organization shall be immune from

34

liability for any claim of a violation of antitrust law or unfair trade practice if such conduct is a

 

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1

violation of antitrust law, to the extent such producer or representative implementing organization

2

is exercising authority pursuant to the provisions of this section.

3

     (jh) Not later than the implementation date of the paint stewardship program, the

4

department shall list the names of participating producers the brands of architectural paint covered

5

by such paint stewardship program and the cost of the approved paint stewardship assessment on

6

its website.

7

     (ki)(1) On and after the implementation date of the paint stewardship program, no producer,

8

distributor or retailer shall sell or offer for sale architectural paint to any person in this state if the

9

producer of such architectural paint is not a member of paint stewardship assessment is not

10

collected and remitted to the representative implementing organization.

11

     (2) No retailer or distributor shall be found to be in violation of the provisions of this section

12

if, on the date the architectural paint was ordered from the producer or its agent, the producer or

13

the subject brand of architectural paint was listed on the department’s website in accordance with

14

the provisions of this section.

15

     (lj) Producers or the representative implementing organization shall provide retailers with

16

educational materials regarding the paint stewardship assessment and paint stewardship program

17

to be distributed at the point of sale to the consumer. Such materials shall include, but not be limited

18

to, information regarding available end-of-life management options for architectural paint offered

19

through the paint stewardship program and information that notifies consumers that a charge for

20

the operation of such paint stewardship program is included in the purchase price of all architectural

21

paint sold in this state.

22

     (mk) On or before October 15, 2015, and annually thereafter, the representative

23

implementing organization shall submit a report to the director of the department of environmental

24

management that details the paint stewardship program. Said report shall include a copy of the

25

independent audit detailed in subdivision (4) below. Such annual report shall include, but not be

26

limited to:

27

     (1) A detailed description of the methods used to collect, transport and process post-

28

consumer paint in this state;

29

     (2) The overall volume of post-consumer paint collected in this state;

30

     (3) The volume and type of post-consumer paint collected in this state by method of

31

disposition, including reuse, recycling and other methods of processing or disposal;

32

     (4) The total cost of implementing the program, as determined by an independent financial

33

audit, as performed by an independent auditor;

34

     (5) An evaluation of the adequacy of the program’s funding mechanism;

 

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1

     (6) Samples of all educational materials provided to consumers of architectural paint and

2

participating retailers; and

3

     (7) A detailed list of efforts undertaken and an evaluation of the methods used to

4

disseminate such materials including recommendations, if any, for how the educational component

5

of the program can be improved.

6

     (nl) The representative implementing organization shall may update the plan, as needed,

7

when there are changes proposed to the current program. An new plan or amendment to the existing

8

plan will be required to be submitted to the department for approval when:

9

     (1) There is a proposed change to the amount of the assessment; or

10

     (2) There is an addition to the products covered under the program; or

11

     (3) There is a revision of the product stewardship organization’s goals.: or

12

     (4) Every four (4) years, if requested, in writing, by the department the representative

13

organization shall notify the department annually, in writing, if there are no changes proposed to

14

the program and the representative organization intends to continue implementation of the program

15

as previously approved by the department.

16

     (m) Upon selection of a new implementing organization to administer the paint stewardship

17

program, the program shall be audited by the independent auditor and, upon certification of the

18

audit by the department, any funds held by the previous implementing organization shall be

19

immediately transferred to the department. These funds shall then be transferred by the department

20

to the new implementing organization for use in administering the approved paint stewardship

21

program.

22

     (n) If there are no respondents to the solicitation required by this section, or the department

23

determines that none of the responses are sufficient to meet the requirements of this section, the

24

Rhode Island resource recovery corporation established pursuant to § 23-19 et. seq. shall serve as

25

the implementing organization, as defined in this chapter, until such time as another solicitation is

26

required to occur by this section.

27

     SECTION 11. Chapter 23-28.2 of the General Laws entitled “Office of the State Fire

28

Marshal” is hereby amended by adding thereto the following section:

29

     23-28.2-30. Deputy state fire marshals assigned to towns or fire districts.

30

     In the event any town or fire district does not have an assistant deputy state fire marshal

31

appointed by the state fire marshal pursuant to § 23-28.2-9 of this chapter to perform fire

32

prevention, protection, inspection, and other duties under chapters 28.1 – 28.39 of title 23, the

33

applicable town or fire district shall provide written notice to the state fire marshal within ten (10)

34

business days of such absence. The notice shall include, at a minimum, the reason for the absence,

 

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1

the anticipated duration, and a stated plan for appointment of an assistant deputy state fire marshal

2

to perform such services within the applicable town or fire district. Failure to provide such notice

3

may result in the assessment of additional fees as deemed necessary and appropriate by the state

4

fire marshal. During the absence, the state fire marshal is authorized to assign and appoint one or

5

more deputy state fire marshals of the office of the state fire marshal to duty in the applicable town

6

or fire district. Each deputy state fire marshal assigned to duty as aforesaid shall during the period

7

of such duty continue to be a deputy state fire marshal of the office of the state fire marshal, but the

8

salary and expenses of each deputy state fire marshal so assigned, or such prorated amount as

9

determined by the state fire marshal, shall be reimbursed by the applicable town or fire district.

10

The state fire marshal shall have full power at all times to withdraw any deputy state fire marshal

11

assigned to duty in a town or fire district and assign another deputy state fire marshal to his or her

12

place or to discontinue such duty and to make no assignment to replace.

13

     SECTION 12. Section 23-86-1 of the General Laws in Chapter 23-86 entitled “Women’s

14

cardiovascular screening and risk reduction pilot program” is hereby repealed.

15

     23-86-1. Women’s cardiovascular screening and risk reduction pilot program.

16

     (a) The department of health (hereinafter, “the department”) shall develop a cardiovascular

17

disease screening and lifestyle intervention pilot program at one site in one of Rhode Island’s six

18

(6) core cities for low-income, underinsured and uninsured women between forty (40) and sixty-

19

four (64) years of age, inclusive, at risk for heart disease, diabetes and stroke, namely Pawtucket,

20

Providence, Woonsocket, Newport, West Warwick or Central Falls.

21

     (b) The department shall develop the program based on the federal WISEWOMEN

22

program administered by the Centers for Disease Control and Prevention. The pilot program shall

23

employ specified measures to gauge the impact and outcome of the program. These measures may

24

include the number of women served, the number who receive lifestyle interventions, the number

25

of follow-up visits per woman, an evaluation of the use of progress markers to reduce risk factors,

26

and a research and evaluation component.

27

     (c) The department shall prepare an annual report and submit it to the legislature by January

28

31 of each year summarizing the scope and reach of the pilot program. The final report shall include

29

a fiscal analysis and a recommendation outlining the benefits and costs of expanding the pilot

30

program throughout the state after the program has been in existence for three (3) years. The pilot

31

program shall expire July 1, 2014.

32

     (d) Implementation of the Women’s Cardiovascular screening and risk reduction pilot

33

program shall be subject to appropriation.

34

     SECTION 13. Sections 23-90-3, 23-90-5, 23-90-6, 23-90-8, 23-90-10 of the General Laws

 

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1

in Chapter 23-90 entitled “Responsible Recycling, Reuse and Disposal of Mattresses” are hereby

2

amended to read as follows:

3

     23-90-3. Definitions.

4

     As used in this chapter, the following words shall, unless the context clearly requires

5

otherwise, have the following meanings:

6

     (1) “Brand” means a name, symbol, word or mark that attributes a mattress to the producer

7

of such mattress.

8

     (2) “Covered entity” means any political subdivision of the state, any mattress retailer, any

9

permitted transfer station, any waste to energy facility, any healthcare facility, any educational

10

facility, any correctional facility, any military base, or any commercial or non-profit lodging

11

establishment that possesses a discarded mattress that was discarded in this state. Covered entity

12

does not include any renovator, refurbisher or any person who transports a discarded mattress.

13

     (3) “Consumer” means an individual who is also a resident of this state.

14

     (4) “Corporation” means the Rhode Island Resource Recovery Corporation.

15

     (5) “Corporation Director” means the executive director of the Rhode Island Resource

16

Recovery Corporation.

17

     (6) “Council” or “mattress recycling council” means the state wide, non-profit organization

18

created by producers, or created by any trade association that represents producers, who account

19

for a majority of mattress production in the United States to design, submit, and implement the

20

mattress stewardship plan as described in this chapter.

21

     (76) “Discarded mattress” means any mattress that a consumer intends to discard, has

22

discarded, or that is abandoned.

23

     (87) “Energy recovery” means the process by which all or a portion of solid waste materials

24

are processed or combusted in order to utilize the heat content or other forms of energy derived

25

from such solid waste materials.

26

     (98) “Foundation” means any ticking-covered structure that is used to support a mattress

27

and that is composed of one or more of the following: A constructed frame, foam, or a box spring.

28

“Foundation” does not include any bed frame or base made of wood, metal, or other material that

29

rests upon the floor and that serves as a brace for a mattress.

30

     (9) “Implementing organization” means the organization or entity selected by the resource

31

recovery corporation to administer the mattress stewardship program.

32

     (10) “Mattress” means any resilient material, or combination of materials, that is enclosed

33

by ticking, used alone or in combination with other products, and that is intended for, or promoted

34

for, sleeping upon. “Mattress” includes any foundation, renovated foundation, or renovated

 

LC004143 - Page 72 of 226

1

mattress.

2

     “Mattress” does not include any of the following:

3

     (i) An unattached mattress pad, an unattached mattress topper, including any item with

4

resilient filling, with or without ticking, that is intended to be used with, or on top of a mattress;

5

     (ii) A sleeping bag, pillow;

6

     (iii) A crib or bassinet mattress, car bed;

7

     (iv) Juvenile products, including: a carriage, basket, dressing table, stroller, playpen, infant

8

carrier, lounge pad, crib bumper, and the pads for those juvenile products;

9

     (v) A product that contains liquid- or gaseous-filled ticking, including any water bed or air

10

mattress that does not contain upholstery material between the ticking and the mattress core;

11

     (vi) Any upholstered furniture that does not contain a detachable mattress; or

12

     (vii) A fold-out sofa bed or futon.

13

     (11) “Mattress core” means the main support system that is present in a mattress, including,

14

but not limited to: springs, foam, air bladder, water bladder, or resilient filling.

15

     (12) “Mattress recycling council” or “council” means the organization created by producers

16

to design, submit, and implement the mattress stewardship program described in § 23-90-5.

17

     (1312) “Mattress stewardship fee” means the amount added to the purchase price of a

18

mattress sold in this state that is necessary to cover the cost of collecting, transporting, and

19

processing discarded mattresses by the council pursuant to the mattress stewardship program.

20

     (1413) “Mattress stewardship program” or “program” means the state wide, program

21

described in § 23-90-5 and implemented pursuant to the mattress stewardship plan as approved by

22

the corporation director.

23

     (1514) “Mattress topper” means any item that contains resilient filling, with or without

24

ticking, that is intended to be used with or on top of a mattress.

25

     (1615) “Performance goal” means a metric proposed by the council, to measure, on an

26

annual basis, the performance of the mattress stewardship program, taking into consideration

27

technical and economic feasibilities, in achieving continuous, meaningful improvement in

28

improving the rate of mattress recycling in the state and any other specified goal of the program.

29

     (1716) “Producer” means any person who manufactures or renovates a mattress that is sold,

30

offered for sale, or distributed in the state under the manufacturer’s own name or brand. “Producer”

31

includes:

32

     (i) The owner of a trademark or brand under which a mattress is sold, offered for sale, or

33

distributed in this state, whether or not such trademark or brand is registered in this state; and

34

     (ii) Any person who imports a mattress into the United States that is sold or offered for sale

 

LC004143 - Page 73 of 226

1

in this state and that is manufactured or renovated by a person who does not have a presence in the

2

United States;

3

     (1817) “Recycling” means any process in which discarded mattresses, components, and

4

by-products may lose their original identity or form as they are transformed into new, usable, or

5

marketable materials. “Recycling” does not include as a primary process the use of incineration for

6

energy recovery or energy generation by means of combustion.

7

     (1918) “Renovate” or “renovation” means altering a mattress for the purpose of resale and

8

includes any one, or a combination of, the following: Replacing the ticking or filling, adding

9

additional filling, rebuilding a mattress, or replacing components with new or recycled materials.

10

“Renovate” or “renovation” does not include the:

11

     (i) Stripping of a mattress of its ticking or filling without adding new material;

12

     (ii) Sanitization or sterilization of a mattress without otherwise altering the mattress; or

13

     (iii) Altering of a mattress by a renovator when a person retains the altered mattress for

14

personal use, in accordance with regulations of the department of business regulation.

15

     (2019) “Renovator” means a person who renovates discarded mattresses for the purpose of

16

reselling such mattresses in a retail store.

17

     (2120) “Retailer” means any person who sells mattresses in this state or offers mattresses

18

in this state to a consumer through any means, including, but not limited to, remote offerings such

19

as sales outlets, catalogs, or the internet.

20

     (2221) “Sanitization” means the direct application of chemicals to a mattress to kill human

21

disease-causing pathogens.

22

     (2322) “ Sale” means the transfer of title of a mattress for consideration, including through

23

the use of a sales outlet, catalog, internet website, or similar electronic means.

24

     (2423) “Sterilization” means the mitigation of any deleterious substances or organisms

25

including human disease-causing pathogens, fungi, and insects from a mattress or filling material

26

using a process approved by the department of business regulation.

27

     (2524) “Ticking” means the outermost layer of fabric or material of a mattress. “Ticking”

28

does not include any layer of fabric or material quilted together with, or otherwise attached to, the

29

outermost layer of fabric or material of a mattress.

30

     (2625) “Upholstery material” means all material, loose or attached, between the ticking

31

and the core of a mattress.

32

     (2726) “Wholesaler” means any person who sells or distributes mattresses in the state, in a

33

nonretail setting, for the purpose of the resale of such mattresses.

34

     23-90-5. Mattress stewardship plan.

 

LC004143 - Page 74 of 226

1

     (a) On or before July 1, 2015 December 31, 2024, and every five years thereafter, the

2

mattress stewardship council corporation shall submit a mattress stewardship plan for the

3

establishment of a mattress stewardship program to the corporation director for approval issue a

4

solicitation consistent with state procurement law to identify an implementing organization to

5

administer the mattress stewardship program.

6

     (b) The plan Responses to the solicitation submitted pursuant to subsection (a) of this

7

section shall, to the extent it is technologically feasible and economically practical:

8

     (1) Identify each producer’s participation in the program;

9

     (2) Describe the fee structure for the program and propose a uniform stewardship fee that

10

is sufficient to cover the costs of operating and administering the program;

11

     (3) Establish performance goals for the first two (2) years of the program;

12

     (4) Identify proposed recycling facilities to be used by the program, such facilities shall not

13

require a solid waste management facilities license;

14

     (5) Detail how the program will promote the recycling of discarded mattresses;

15

     (6) Include a description of the public education program;

16

     (7) Describe fee-disclosure language that retailers will be required to prominently display

17

that will inform consumers of the amount and purpose of the fee; and

18

     (8) Identify the methods and procedures to facilitate implementation of the mattress

19

stewardship program in coordination with the corporation director and municipalities.

20

     (c) Not later than ninety (90) days after submission of the plan pursuant to this section, the

21

corporation shall make a determination whether to:

22

     (1) Approve the plan as submitted; or

23

     (2) Deny the plan.

24

     (d) The corporation director shall approve the plan for the establishment of the mattress

25

stewardship program, provided such plan reasonably meets the requirements of this section. Prior

26

to making such determination, the corporation director shall post the plan for at least thirty (30)

27

days, in accordance with the “Administrative Procedures Act” as set forth in chapter 35 of title 42,

28

on the corporation’s website and solicit public comments on the plan to be posted on the website.

29

     (ec) In the event that the corporation does not select a respondent to administer the mattress

30

stewardship program, or the director of the corporation determines that the corporation can

31

administer a mattress stewardship program at lower cost to the consumer, then the corporation shall

32

administer a mattress stewardship program consistent with the requirements of this chapter. In such

33

cases, the corporation shall assume all duties and responsibilities of the implementing organization,

34

as defined in this chapter, and shall administer the mattress stewardship program until such time as

 

LC004143 - Page 75 of 226

1

a new implementing organization is selected pursuant to the solicitation required by this section to

2

occur every five years. director denies the plan, the corporation director shall provide a notice of

3

determination to the council, within sixty (60) days, detailing the reasons for the disapproval. The

4

council shall revise and resubmit the plan to the corporation director not later than forty-five (45)

5

days after receipt of notice of the corporation director’s denial notice. Not later than forty-five (45)

6

days after receipt of the revised plan, the corporation director shall review and approve or deny the

7

revised plan. The council may resubmit a revised plan to the corporation director for approval on

8

not more than two (2) occasions. If the council fails to submit a plan that is acceptable to the

9

corporation director, because it does not meet the criteria pursuant to subdivisions (b)(1-8), the

10

corporation director shall have the ability to modify the submitted plan and approve it. Not later

11

than one hundred twenty (120) days after the approval of a plan pursuant to this section, the council

12

shall implement the mattress stewardship program.

13

     (fd) It is the responsibility of the council implementing organization to:

14

     (1) Notify the corporation director whenever there is a proposed substantial change to the

15

program. If the corporation director takes no action on a proposed substantial change within ninety

16

(90) days after notification of the proposed change, the proposed change shall be deemed approved.

17

For the purposes of this subdivision, “substantial change” shall include, but not be limited to:

18

     (i) A change in the processing facilities to be used for discarded mattresses collected

19

pursuant to the program; or

20

     (ii) A material change to the system for collecting mattresses.

21

     (2) Not later than October 1, 2017, the council shall submit to the corporation director for

22

review, updated performance goals that are based on the experience of the program during the first

23

two (2) years of the program.

24

     (ge) The council implementing organization shall notify the corporation director of any

25

other changes to the program on an ongoing basis, whenever they occur, without resubmission of

26

the plan to the corporation director for approval. Such changes shall include, but not be limited to,

27

a change in the composition, officers, or contact information of the council.

28

     (h) On or before July 1, 2015, and every two (2) years thereafter, the council shall propose

29

a uniform fee for all mattresses sold in this state. The council may propose a change to the uniform

30

fee more frequently than once every two (2) years if the council determines such change is needed

31

to avoid funding shortfalls or excesses. Any proposed fee shall be reviewed by an independent

32

auditor to ensure that such assessment does not exceed the costs of the mattress stewardship

33

program described in subsection (b) of this section and to maintain financial reserves sufficient to

34

operate the program over a multi-year period in a fiscally prudent and responsible manner. Not

 

LC004143 - Page 76 of 226

1

later than sixty (60) days after the council proposes a mattress stewardship fee, the auditor shall

2

render an opinion to the corporation director as to whether the proposed mattress stewardship fee

3

is reasonable to achieve the goals set forth in this section. If the auditor concludes that the mattress

4

stewardship fee is reasonable, then the proposed fee shall go into effect not less than ninety (90)

5

days after the auditor notifies the corporation director that the fee is reasonable. If the auditor

6

concludes that the mattress stewardship fee is not reasonable, the auditor shall provide the council

7

with written notice explaining the auditor’s opinion. Specific documents or information provided

8

to the auditor by the council, along with any associated internal documents or information held by

9

the council, shall be made available to the corporation for its review upon request but shall not be

10

made public if the documents and information contain trade secrets or commercial or financial

11

information of a privileged or confidential nature, pursuant to chapter 2 of title 38 (“access to public

12

records”). Not later than fourteen (14) days after the council’s receipt of the auditor’s opinion, the

13

council may either propose a new mattress stewardship fee, or provide written comments on the

14

auditor’s opinion. If the auditor concludes that the fee is not reasonable, the corporation director

15

shall decide, based on the auditor’s opinion and any comments provided by the council, whether to

16

approve the proposed mattress stewardship fee. Such auditor shall be selected by the council. The

17

cost of any work performed by such auditor pursuant to the provisions of this subsection and

18

subsection (i) of this section shall be funded by the council.

19

     (if)(1) On and after the implementation of the mattress stewardship program, each retailer

20

shall add the amount of the fee established pursuant to subsection (b) of this section and described

21

in subsection (h) of this section to the purchase price of all mattresses sold in this state. The fee

22

shall be remitted by the retailer to the council implementing organization. The council

23

implementing organization may, subject to the corporation director’s approval, establish an

24

alternative, practicable means of collecting or remitting such fee.

25

     (2) On and after the implementation date of the mattress stewardship program, no producer,

26

distributor, or retailer shall sell or offer for sale a mattress to any person in the state if the producer

27

is not a member participant in of the mattress stewardship program administered by the council

28

implementing organization.

29

     (3) No retailer or distributor shall be found to be in violation of the provisions of this

30

section, if, on the date the mattress was ordered from the producer or its agent, the producer of said

31

mattress was listed on the corporation’s website in accordance with the provisions of this chapter.

32

     (jg) Not later than October 1, 2016, and annually thereafter, the council implementing

33

organization shall submit an annual report to the corporation director. The corporation director shall

34

post such annual report on the corporation’s website. Such report shall include, but not be limited

 

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1

to:

2

     (1) The weight of mattresses collected pursuant to the program from:

3

     (i) Municipal and/or transfer stations;

4

     (ii) Retailers; and

5

     (iii) All other covered entities;

6

     (2) The weight of mattresses diverted for recycling;

7

     (3) Identification of the mattress recycling facilities to which mattresses were delivered for

8

recycling;

9

     (4) The weight of discarded mattresses recycled, as indicated by the weight of each of the

10

commodities sold to secondary markets;

11

     (5) The weight of mattresses, or parts thereof, sent for disposal at each of the following:

12

     (i) Rhode Island resource recovery corporation; and

13

     (ii) Any other facilities;

14

     (6) Samples of public education materials and methods used to support the program;

15

     (7) A description of efforts undertaken and evaluation of the met meahods used to

16

disseminate such materials;

17

     (8) Updated performance goals and an evaluation of the effectiveness of the methods and

18

processes used to achieve performance goals of the program; and

19

     (9) Recommendations for any changes to the program.

20

     (kh) Two (2) years after the implementation of the program and upon the request of the

21

corporation director, but not more frequently than once a year, the council implementing

22

organization shall cause an audit of the program to be conducted by the auditor described in

23

subsection (h) of this section an independent auditor selected by the implementing organization.

24

Such audit shall review the accuracy of the council’s implementing organization’s data concerning

25

the program and provide any other information requested by the corporation director. Such audit

26

shall be paid for by the council implementing organization. The council implementing organization

27

shall maintain all records relating to the program for not less than three (3) years.

28

     (li) No covered entity that participates in the program shall charge for receipt of mattresses

29

generated in the state. Covered entities may charge a fee for providing the service of collecting

30

mattresses and may restrict the acceptance of mattresses by number, source, or physical condition.

31

     (mj) Covered entities that, upon the date of this act’s passage, have an existing program for

32

recycling discarded mattresses may continue to operate such program without coordination of the

33

council, so long as the entities are able to demonstrate, in writing, to the corporation director that

34

the facilities to which discarded mattresses are delivered are engaged in the business of recycling

 

LC004143 - Page 78 of 226

1

said mattresses and the corporation director approves the written affirmation that the facility

2

engages in mattress recycling of mattresses received by the covered entity. A copy of the written

3

affirmation and the corporation’s approval shall be provided to the council by the corporation

4

director in a timely manner.

5

     (k) The implementing organization may, subject to approval by the corporation, propose

6

the establishment and maintenance of a financial reserve sufficient to operate the program over a

7

multi-year period in a fiscally prudent and responsible manner. Such financial reserve shall not

8

exceed 50 percent of the projected program costs in any given year.

9

     (l) The corporation is authorized to cap administrative expenses to administer the mattress

10

stewardship program at a set percentage of annual program expenses as determined by the

11

corporation.

12

     23-90-6. Responsibilities of the Rhode Island resource recovery corporation.

13

     (a) The corporation shall review for approval responses to the solicitation for an

14

implementing organization to administer the mattress stewardship plan program. of the council

15

     (b) The corporation shall maintain on its website information on collection opportunities

16

for mattresses, including collection site locations. The information must be made available in a

17

printable format for retailers and consumers.

18

     (c) Not later than the implementation date of the mattress stewardship program, the

19

corporation shall list the names of participating producers covered by the program and the cost of

20

the approved mattress stewardship fee on its website.

21

     (d) The corporation shall approve the mattress stewardship fee to be applied by the council

22

implementing organization to mattresses pursuant to this chapter.

23

     (e) The corporation shall assume responsibility for administering the mattress stewardship

24

program in the event that none of the submissions to the solicitation for an implementing

25

organization are deemed sufficient, or if the director of the corporation determines that the

26

corporation can administer the mattress stewardship program at a lower cost to the consumer than

27

any of the respondents to the solicitation.

28

     (ef) Pursuant to § 23-90-11, the corporation shall report biennially to the general assembly

29

on the operation of the statewide system for collection, transportation and recycling of mattresses.

30

     23-90-8. Immunity.

31

     Each producer, retailer and the council implementing organization shall be immune from

32

liability for any claim of a violation of antitrust law, to the extent such producer or council

33

implementing organization is exercising authority pursuant to the provisions of this chapter,

34

including but not limited to:

 

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1

     (1) The creation, implementation or management of a plan pursuant to § 23-90-5, and the

2

types or quantities of used mattresses recycled or otherwise managed pursuant to a plan;

3

     (2) The cost and structure of a plan; and

4

     (3) The establishment, administration, collection or disbursement of the mattress

5

stewardship fee associated with funding the implementation of the plan.

6

     23-90-10. Collaboration.

7

     In the event that another state implements a mattress recycling program, the council

8

implementing organization may collaborate with such state to conserve efforts and resources used

9

in carrying out the mattress stewardship program, provided such collaboration is consistent with

10

the requirements of this chapter.

11

     SECTION 14. Section 23-90-4 in Chapter 23-90 entitled “Responsible Recycling, Reuse

12

and Disposal of Mattresses” is hereby repealed.

13

     23-90-4. Mattress stewardship council established.

14

     (a) On or before July 1, 2015, each producer shall join the council and such council shall

15

submit a plan, for the corporation director’s approval, to establish a statewide mattress stewardship

16

program, as described in this section. Any retailer may be a member of such council. Such mattress

17

stewardship program shall, to the extent it is technologically feasible and economically practical:

18

     (1) Minimize public sector involvement in the management of discarded mattresses;

19

     (2) Provide for the convenient and accessible statewide collection of discarded mattresses

20

from any person in the state with a discarded mattress that was discarded in the state, including

21

from participating covered entities that accumulated and segregated a minimum of fifty (50)

22

discarded mattresses for collection at one time, or a minimum of thirty (30) discarded mattresses

23

for collection at one time in the case of participating municipal transfer stations;

24

     (3) Provide for council-financed recycling and disposal of discarded mattresses;

25

     (4) Provide suitable storage containers at permitted municipal transfer stations, municipal

26

government property or other solid waste management facilities for segregated, discarded

27

mattresses, or make other mutually agreeable storage and transportation agreements at no cost to

28

such municipality provided the municipal transfer station, municipal government property or other

29

solid waste management facilities make space available for such purpose and imposes no fee for

30

placement of such storage container on its premises;

31

     (5) Include a uniform mattress stewardship fee that is sufficient to cover the costs of

32

operating and administering the program; and

33

     (6) Establish a financial incentive that provides for the payment of a monetary sum,

34

established by the council, to promote the recovery of mattresses.

 

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1

     (b) The council shall be a nonprofit organization with a fee structure that covers, but does

2

not exceed, the costs of developing the plan and operating and administering the program in

3

accordance with the requirements of this chapter, and maintaining a financial reserve sufficient to

4

operate the program over a multi-year period of time in a fiscally prudent and responsible manner.

5

The council shall maintain all records relating to the program for a period of not less than three (3)

6

years.

7

     (c) Pursuant to the program, recycling shall be preferred over any other disposal method to

8

the extent that recycling is technologically feasible and economically practical.

9

     (d) The council shall enter into an agreement with the corporation to reimburse for

10

reasonable costs directly related to administering the program but not to exceed the cost of two (2)

11

full time equivalent employees.

12

     SECTION 15. Title 23 of the General Laws entitled “Health and Safety” is hereby amended

13

by adding thereto the following Chapter:

14

CHAPTER 100

15

     RHODE ISLAND HEALTHCARE WORKFORCE DATA COLLECTION ACT

16

     23-100-1. Short Title.

17

     This Chapter shall be known and may be cited as the Rhode Island Healthcare Workforce

18

Data Collection Act.

19

     23-100-2. Definitions.

20

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

21

     (2) “Health care professional” means physicians, physician assistants, dentists, registered

22

nurses, licensed practical nurses, advanced practice registered nurses, nursing assistants,

23

psychologists, licensed clinical social workers, and mental health counselors and marriage and

24

family therapists, and any other licensees as defined by the department.

25

     (3) “Not currently working” means unemployed-not looking for a job, unemployed and

26

looking for a job; on extended leave, retired, or other.

27

     (4) “Principal specialty” means the specialty the healthcare professional spends the most

28

time

29

practicing.

30

     23-100-3. Health care workforce data collection authorized.

31

     The department is hereby authorized to collect healthcare workforce data on all healthcare

32

professionals licensed by the department as part of the department’s licensure and license renewal

33

process and to request all healthcare professionals to voluntarily provide the following healthcare

34

workforce data elements as a part of licensure and licensure renewal:

 

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1

     (a) Principal Specialty;

2

     (b) Education level;

3

     (c) Current practice status in Rhode Island, including but not limited to, clinical practice,

4

medical administrative or legal services only, clinical teaching or clinical research only, not

5

currently working in the medical field, status as a provider of telemedicine, and other practice status

6

as determined by the department;

7

     (d) Ethnicity;

8

     (e) Race;

9

     (f) Languages spoken other than English;

10

     (g) Additional years planning to practice or anticipated retirement year;

11

     (h) Total number of clinical/non-clinical hours per week providing services;

12

     (i) Practice name(s), location(s), and contact information;

13

     (j) Acceptance of Medicaid as a form of payment;

14

     (k) Other data as defined by the department.

15

     23-100-4. Privacy.

16

     The department shall not make publicly available individual data acquired pursuant to §

17

23-97-3. Individualized healthcare workforce data elements shall remain confidential and shall only

18

be available as de-identified aggregate analysis to support healthcare planning, workforce analysis

19

and other health program and policy recommendations. Publicly available data may include, but

20

not be limited to:

21

     (a) Aggregate de-identified data and information on current healthcare workforce capacity;

22

     (b) Geographic distribution of healthcare professionals actively practicing;

23

     (c) Provider-to-population rates; and

24

     (d) Projections of healthcare workforce need.

25

     23-100-5. Rules and regulations.

26

     The department shall promulgate rules and regulations pursuant to this chapter.

27

     SECTION 16. Section 28-43-1 of the General Laws in Chapter 34-18 entitled

28

"Employment Security - Contributions" is hereby amended to read as follows:

29

     28-43-1. Definitions.

30

     The following words and phrases as used in this chapter have the following meanings,

31

unless the context clearly requires otherwise:

32

     (1) “Balancing account” means a book account to be established within the employment

33

security fund, the initial balance of which shall be established by the director as of September 30,

34

1979, by transferring the balance of the solvency account on that date to the balancing account.

 

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1

     (2) “Computation date” means September 30 of each year, provided, however, that in

2

calendar year 2024, for the purposes of establishing which schedule shall be in effect for tax year

3

2025, “computation date” means any date between September 30 and December 31 in the discretion

4

of the director of the department of labor.

5

     (3) “Eligible employer” means an employer who has had three (3) consecutive experience

6

years during each of which contributions have been credited to the employer’s account and benefits

7

have been chargeable to this account.

8

     (4) “Employer’s account” means a separate account to be established within the

9

employment security fund by the director as of September 30, 1958, for each employer subject to

10

chapters 42 — 44 of this title, out of the money remaining in that fund after the solvency account

11

has been established in the fund, by crediting to each employer an initial credit balance bearing the

12

same relation to the total fund balance so distributed, as his or her tax contributions to the fund

13

during the period beginning October 1, 1955, and ending on September 30, 1958, have to aggregate

14

tax contributions paid by all employers during the same period; provided, that nothing contained in

15

this section shall be construed to grant to any employer prior claim or rights to the amount

16

contributed by him or her to the fund.

17

     (5) “Experience rate” means the contribution rate assigned to an employer’s account under

18

whichever is applicable of schedules A — I in § 28-43-8.

19

     (6) “Experience year” means the period of twelve (12), consecutive calendar months

20

ending September 30 of each year.

21

     (7) “Most recent employer” means the last base-period employer from whom an individual

22

was separated from employment and for whom the individual worked for at least four (4) weeks,

23

and in each of those four (4) weeks had earnings of at least twenty (20) times the minimum hourly

24

wage as defined in chapter 12 of this title.

25

     (8) “Reserve percentage” means, in relation to an employer’s account, the net balance of

26

that account on a computation date, including any voluntary contributions made in accordance with

27

§ 28-43-5.1, stated as a percentage of the employer’s twelve-month (12) average taxable payroll

28

for the last thirty-six (36) months ended on the immediately preceding June 30.

29

     (9) “Reserve ratio of fund” means the ratio which the total amount available for the

30

payment of benefits in the employment security fund on September 30, 1979, or any computation

31

date thereafter, minus any outstanding federal loan balance, plus an amount equal to funds

32

transferred to the job development fund through the job development assessment adjustment for

33

the prior calendar year, bears to the aggregate of all total payrolls subject to this chapter paid during

34

the twelve-month (12) period ending on the immediately preceding June 30, or the twelve-month

 

LC004143 - Page 83 of 226

1

(12) average of all total payrolls during the thirty-six-month (36) period ending on that June 30,

2

whichever percentage figure is smaller.

3

     (10) “Taxable payroll” means, for the purpose of this chapter, the total of all wages as

4

defined in § 28-42-3(29).

5

     SECTION 17. Section 34-18-58 of the General Laws in Chapter 34-18 entitled "Residential

6

Landlord and Tenant Act" is hereby amended to read as follows:

7

     34-18-58. Statewide mandatory rental lead registry.

8

     (a) All landlords who own at least one (1) rental dwelling unit built before 1978 shall

9

register the following information with the department of health:

10

(1) Names of individual landlords or any business entity responsible for leasing to a tenant

11

under this chapter;

12

     (2) An active business address, PO box, or home address;

13

     (3) An active email address;

14

     (4) An active telephone number that would reasonably facilitate communications with the

15

tenant of each dwelling unit;

16

     (5) Any property manager, management company, or agent for service of the property,

17

along with the business address, PO box, or home address of the property manager, management

18

company, or agent and including:

19

     (i) An active email address; and

20

     (ii) An active telephone number, for each such person or legal entity, if applicable, for each

21

dwelling unit; and

22

     (6) Information necessary to identify each dwelling unit.

23

     (b) All landlords who lease a residential property constructed prior to 1978 and that is not

24

exempt from the requirements of chapter 128.1 of title 42 ("lead hazard mitigation") shall, in

25

addition to the requirements of subsection (a) of this section, for each dwelling unit, provide the

26

department of health with a valid certificate of conformance in accordance with chapter 128.1 of

27

title 42 ("lead hazard mitigation") and regulations derived therefrom, or evidence sufficient to

28

demonstrate that they are exempt from the requirement to obtain a certificate of conformance.

29

     (c) Contingent upon available funding, no later than September 1, 2025, the department of

30

health, or designee, shall create a publicly accessible online database containing the information

31

obtained in accordance with subsections (a) and (b) of this section, no later than nine (9) months

32

following the effective date of this section [June 20, 2023]. on all landlords who have not provided

33

the department with a valid certificate of conformance. The database shall contain:

34

     (i) The names of individual landlords or any business entity responsible for leasing to a

 

LC004143 - Page 84 of 226

1

tenant under this chapter,

2

     (ii) The property address and,

3

     (iii) Any property manager, management company, or agent for service of the property.

4

     (d) All landlords subject to the requirements of subsections (a) and (b) of this section as of

5

September 1, 20245, shall register the information required by those subsections no later than

6

October 1, 20245. A landlord who acquires a rental property, or begins leasing a rental property to

7

a new tenant, after September 1, 20245, shall register the information required by subsections (a)

8

and (b) of this section within thirty (30) days after the acquisition or lease to a tenant, whichever

9

date is earlier. All landlords subject to the requirements of subsections (a) and (b) of this section

10

shall, following initial registration, re-register by October 1 of each year in order to update any

11

information required to comply with subsections (a) and (b) of this section, or to confirm that the

12

information already supplied remains accurate.

13

     (e) Any person or entity subject to subsections (a) and (b) of this section who fails to

14

comply with the registration provision in subsection (d) of this section, shall be subject to a civil

15

fine of at least fifty dollars ($50.00) per month for failure to register the information required by

16

subsection (a) of this section, or at least one hundred and twenty-five dollars ($125) per month, for

17

failure to register the information required by subsection (b) of this section.

18

     (f) All civil penalties imposed pursuant to subsection (e) of this section shall be payable to

19

the department of health. There is to be established a restricted receipt account to be known as the

20

"rental registry account" which shall be a separate account within the department of health.

21

Penalties received by the department pursuant to the terms of this section shall be deposited into

22

the account. Monies deposited into the account shall be transferred to the department of health and

23

shall be expended for the purpose of administering the provisions of this section or lead hazard

24

mitigation, abatement, enforcement, or poisoning prevention. No penalties shall be levied under

25

this section prior to October 1, 20245.

26

     (g) Notwithstanding the provisions of § 34-18-35, a landlord or any agent of a landlord

27

may not commence an action to evict for nonpayment of rent in any court of competent jurisdiction,

28

unless, at the time the action is commenced, the landlord is in compliance with the requirements of

29

subsections (a), (b), and (d) of this section. A landlord must present the court with evidence of

30

compliance with subsections (a), (b), and (d) of this section at the time of filing an action to evict

31

for nonpayment of rent in order to proceed with the civil action.

32

     (h) The department of health may commence an action for injunctive relief and additional

33

civil penalties of up to fifty dollars ($50.00) per violation against any landlord who repeatedly fails

34

to comply with subsection (a) of this section. The attorney general may commence an action for

 

LC004143 - Page 85 of 226

1

injunctive relief and additional civil penalties of up to one thousand dollars ($1,000) per violation

2

against any landlord who repeatedly fails to comply with subsection (b) of this section. Any

3

penalties obtained pursuant to this subsection shall be used for the purposes of lead hazard

4

mitigation, abatement, enforcement, or poisoning prevention, or for the purpose of administering

5

the provisions of this section. No penalties shall be levied under this section prior to October 1,

6

20245.

7

     SECTION 18. Effective July 1, 2024, section 35-17-1 of the General Laws in Chapter 35-

8

17 entitled "Medical Assistance and Public Assistance Caseload Estimating Conferences" is hereby

9

amended to read as follows:

10

     35-17-1. Purpose and membership.

11

     (a) In order to provide for a more stable and accurate method of financial planning and

12

budgeting, it is hereby declared the intention of the legislature that there be a procedure for the

13

determination of official estimates of anticipated medical assistance expenditures and public

14

assistance caseloads, upon which the executive budget shall be based and for which appropriations

15

by the general assembly shall be made.

16

     (b) The state budget officer, the house fiscal advisor, and the senate fiscal advisor shall

17

meet in regularly scheduled caseload estimating conferences (C.E.C.). These conferences shall be

18

open public meetings.

19

     (c) The chairpersonship of each regularly scheduled C.E.C. will rotate among the state

20

budget officer, the house fiscal advisor, and the senate fiscal advisor, hereinafter referred to as

21

principals. The schedule shall be arranged so that no chairperson shall preside over two (2)

22

successive regularly scheduled conferences on the same subject.

23

     (d) Representatives of all state agencies are to participate in all conferences for which their

24

input is germane.

25

     (e) The department of human services shall provide monthly data to the members of the

26

caseload estimating conference by the fifteenth day of the following month. Monthly data shall

27

include, but is not limited to, actual caseloads and expenditures for the following case assistance

28

programs: Rhode Island Works, SSI state program, general public assistance, and child care. For

29

individuals eligible to receive the payment under § 40-6-27(a)(1)(vi), the report shall include the

30

number of individuals enrolled in a managed care plan receiving long-term-care services and

31

supports and the number receiving fee-for-service benefits. The executive office of health and

32

human services shall report relevant caseload information and expenditures for the following

33

medical assistance categories: hospitals, long-term care, managed care, pharmacy, and other

34

medical services. In the category of managed care, caseload information and expenditures for the

 

LC004143 - Page 86 of 226

1

following populations shall be separately identified and reported: children with disabilities,

2

children in foster care, and children receiving adoption assistance and RIte Share enrollees under §

3

40-8.4-12(j). The information shall include the number of Medicaid recipients whose estate may

4

be subject to a recovery and the anticipated amount to be collected from those subject to recovery,

5

the total recoveries collected each month and number of estates attached to the collections and each

6

month, the number of open cases and the number of cases that have been open longer than three

7

months.

8

     (f) Beginning July 1, 2021, the department of behavioral healthcare, developmental

9

disabilities and hospitals shall provide monthly data to the members of the caseload estimating

10

conference by the fifteenth twenty-fifth day of the following month. Monthly data shall include,

11

but is not limited to, actual caseloads and expenditures for the private community developmental

12

disabilities services program. Information shall include, but not be limited to: the number of cases

13

and expenditures from the beginning of the fiscal year at the beginning of the prior month; cases

14

added and denied during the prior month; expenditures made; and the number of cases and

15

expenditures at the end of the month. The information concerning cases added and denied shall

16

include summary information and profiles of the service-demand request for eligible adults meeting

17

the state statutory definition for services from the division of developmental disabilities as

18

determined by the division, including age, Medicaid eligibility and agency selection placement with

19

a list of the services provided, and the reasons for the determinations of ineligibility for those cases

20

denied. The department shall also provide, monthly, the number of individuals in a shared-living

21

arrangement and how many may have returned to a twenty-four-hour (24) residential placement in

22

that month. The department shall also report, monthly, any and all information for the consent

23

decree that has been submitted to the federal court as well as the number of unduplicated individuals

24

employed; the place of employment; and the number of hours working. The department shall also

25

provide the amount of funding allocated to individuals above the assigned resource levels; the

26

number of individuals and the assigned resource level; and the reasons for the approved additional

27

resources. The department will also collect and forward to the house fiscal advisor, the senate fiscal

28

advisor, and the state budget officer, by November 1 of each year, the annual cost reports for each

29

community-based provider for the prior fiscal year. The department shall also provide the amount

30

of patient liability to be collected and the amount collected as well as the number of individuals

31

who have a financial obligation. The department will also provide a list of community-based

32

providers awarded an advanced payment for residential and community-based day programs; the

33

address for each property; and the value of the advancement. If the property is sold, the department

34

must report the final sale, including the purchaser, the value of the sale, and the name of the agency

 

LC004143 - Page 87 of 226

1

that operated the facility. If residential property, the department must provide the number of

2

individuals residing in the home at the time of sale and identify the type of residential placement

3

that the individual(s) will be moving to. The department must report if the property will continue

4

to be licensed as a residential facility. The department will also report any newly licensed twenty-

5

four-hour (24) group home; the provider operating the facility; and the number of individuals

6

residing in the facility. Prior to December 1, 2017, the department will provide the authorizations

7

for community-based and day programs, including the unique number of individuals eligible to

8

receive the services and at the end of each month the unique number of individuals who participated

9

in the programs and claims processed.

10

     (g) The executive office of health and human services shall provide direct assistance to the

11

department of behavioral healthcare, developmental disabilities and hospitals to facilitate

12

compliance with the monthly reporting requirements in addition to preparation for the caseload

13

estimating conferences.

14

     SECTION 19. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby

15

amended by adding thereto the following section:

16

     37-2-83. Ethics.

17

     (a) All state employees shall be subject to the provisions of Chapter 36-14 and all

18

regulations promulgated by the Rhode Island Ethics Commission, and any special provisions of

19

this section.

20

     (b) In addition to Chapter 36-14, the following Supplemental State Code of Procurement

21

Ethics shall apply to procurement personnel and vendors. Procurement personnel shall be defined

22

as every employee within the division of purchases, any state employee that is directly involved in

23

drafting or approving specifications, requirements, and requisitions, and/or any state employee

24

involved in or advising on the technical evaluation for solicitations. Procurement personnel shall

25

also include any agency directors involved in a particular procurement.

26

     (1) The code of ethics applicable to all procurement personnel:

27

     (A) To consider, first, the interests of the state in all transactions;

28

     (B) To support and carry out state policies;

29

     (C) To buy without prejudice;

30

     (D) To avoid any conflict of interest with respect to procurement, or the appearance thereof;

31

     (E) To obtain the maximum value for each dollar of expenditure;

32

     (F) To subscribe to and work for honesty and truth in buying and selling, and to denounce

33

all forms and manifestations of bribery; and

34

     (G) To respect obligation and to require that obligations to the state be respected, consistent

 

LC004143 - Page 88 of 226

1

with good business practice.

2

     (2) A primary responsibility of purchasing personnel shall be to maintain good relations

3

with suppliers and potential suppliers. Relationships shall be maintained in a manner which assures

4

that no conflict of interest situations arise.

5

     (A) All potential suppliers shall be given a fair opportunity to present their capabilities and

6

products.

7

     (B) Reasonable effort shall be made to provide fair bidding opportunities to all qualified

8

and interested suppliers.

9

     (C) During the procurement process, procurement personnel shall maintain the

10

confidentiality of information submitted by suppliers and potential suppliers.

11

     (i) During the procurement process, supplier proposals shall be treated in confidence with

12

regard to technical approach and cost.

13

     (ii) Distribution of information contained in supplier proposals shall be limited to those

14

having a "need to know" as determined by the Purchasing Agent.

15

     (iii) Under no circumstances shall confidential information be made available to other

16

vendors.

17

     (D) Procurement personnel are prohibited from engaging in any conduct which might cause

18

any existing or prospective supplier of goods or services to believe that its relationship with the

19

state will be affected by purchasing or failing to purchase goods or services from any procurement

20

personnel or any business associate of such procurement personnel.

21

     (E) Under no circumstances may a vendor provide to procurement personnel, nor may

22

procurement personnel accept, any goods or services, regardless of monetary value, for personal

23

use for less than fair market value.

24

     (F) Procurement personnel are prohibited from accepting gifts or gratuities in any form for

25

themselves or their families (spouses, parents, children, sisters, brothers, in-laws, etc.) from

26

contractors, subcontractors or suppliers now furnishing or desiring to furnish supplies or services

27

to the division of purchases.

28

     (i) Gifts or gratuities shall mean, but are not limited to money, merchandise, advertising

29

media (any merchandise carrying a vendor's name or logo), gift certificates, trips (individually or

30

in groups), cocktail parties, dinners, evening entertainment, sporting events, etc.

31

     (G) Inappropriate social interaction between procurement personnel and any current or

32

prospective contractors, subcontractors or suppliers and their representatives creating the

33

impression of favoritism shall be avoided. However, social interactions between state employees

34

and representatives of suppliers which are clearly of a personal nature, in which the parties involved

 

LC004143 - Page 89 of 226

1

would normally be expected to reciprocate, and in which no reimbursement from the state is sought

2

by the employee, may be acceptable. However, the responsibility rests on the individual employee

3

to regulate his or her own actions and to seek advice from the State Purchasing Agent, or designee,

4

with respect to the Supplemental State Code of Procurement Ethics.

5

     (3) It shall be the obligation of all state employees to avoid conflicts of interest with respect

6

to procurement, and to report promptly to the State Purchasing Agent all instances where a conflict

7

exists or is suspected to exist.

8

     (4) The State Purchasing Agent shall investigate and issue determinations with respect to

9

any reports or complaints made under this section.

10

     (5) All employees of the division of purchases shall be required to sign and submit annual

11

disclosure statements with respect to conflicts of interest.

12

     (6) Procurement personnel shall not make purchases for personal use in the name of the

13

state or through the use of any state procurement forms.

14

     (i.) If a procurement personnel violates the provisions of this section, the State Purchasing

15

Agent, or designee, with approval by the Chief Purchasing Officer, will recommend appropriate

16

consequences to the division of human resources, including but not limited to: reassignment of the

17

procurement personnel or other state employee involved, termination of employment of the

18

procurement personnel or other state employee involved. Additionally, if appropriate, the Chief

19

Purchasing Officer may refer the matter to the Ethics Commission pursuant to Chapter 36-14.

20

     (ii) If a vendor violates the provisions of this section, the State Purchasing Agent, or

21

designee, with approval by the Chief Purchasing Officer, will recommend appropriate

22

consequences, including, but not limited to the suspension or debarment of any and all vendors

23

who may be involved.

24

     SECTION 20. Sections 37-2-2, 37-2-13.1, 37-2-17, 37-2-17.1, 37-2-17.2, 37-2-18, 37-2-

25

18.2, 37-2-19, 37-2-20, 37-2-25.1, 37-2-54 and 37-2-56 of the General Laws in Chapter 37-2

26

entitled "State Purchases" are hereby amended to read as follows:

27

     37-2-2. General provisions.

28

     (a) This chapter shall be liberally construed and applied to promote its underlying purposes

29

and policies.

30

     (b) The purpose of the public procurement system for the State of Rhode Island and its

31

local public agencies is to deliver on a timely basis the best value product or service to the customer,

32

while maintaining the public’s trust and fulfilling public policy objectives in the best interest of the

33

State. The additional underlying purposes and policies of this chapter are to:

34

     (1) Simplify, clarify, and modernize the law governing purchasing by the state of Rhode

 

LC004143 - Page 90 of 226

1

Island and its local public agencies;

2

     (2) Permit the continued development of purchasing policies and practices;

3

     (3) Make as consistent as possible the purchasing laws among the various states;

4

     (4) Provide for increased public confidence in the procedures followed in public

5

procurement;

6

     (5) Insure the fair and equitable treatment of all persons who deal with the procurement

7

system of the state;

8

     (6) Provide increased economy in state and public agency procurement activities by

9

fostering effective competition;

10

     (7) Provide safeguards for the maintenance of a procurement system of quality, integrity

11

and highest ethical standards; and

12

     (8) Ensure that a public agency, acting through its existing internal purchasing function,

13

adheres to the general principles, policies and practices enumerated herein.

14

     37-2-13.1. Procurement regulations — Request for proposal.

15

     (a) No request for proposal shall change to a master-price master price agreement unless

16

the request for proposal is cancelled and reissued as a master price agreement.

17

     (b) No vendor, parent corporation, subsidiary, affiliate, or subcontractor of any state vendor

18

may bid on a request for proposal if that person or entity has or had any contractual, financial,

19

business, or beneficial interest with the state or a conflict of interest as defined in chapter 36-14

20

with any official, officer, or agency in charge of the request or if they materially participated or

21

were consulted with respect to the direct requirements, and/or technical aspects, or any other part

22

of the formation and promulgation of the request for proposals. except for in the situations outlined

23

in subsection (f) of this section.

24

     (c) Further, no person or entity who or that acts acting as an operator or vendor for the state

25

may participate in any request for proposal relating to any audit, examination, independent

26

verification, review, or evaluation of any of the person’s or entity’s work, financials or operations

27

performed for or on behalf of the state, or any official, officer, or agency.

28

     (c) (d) Persons or entities certified as “sole source” providers under § 37-2-21 shall be

29

exempt from the requirements of subsection (b) of this section.

30

     (d) (e) Any person or entity submitting a proposal in response to a request for proposal

31

shall make a written certification attesting under the penalty of perjury that the terms of subsection

32

(b) of this section have been complied with or that the person or entity is exempt under subsection

33

(c) (d) of this section.

34

     (f) Requests for information formally issued by the division of purchases, feasibility studies

 

LC004143 - Page 91 of 226

1

and preliminary evaluations, and emergency procurements as defined in § 37-2-21 shall be exempt

2

from subsection (b) of this section. However, the division of purchases shall publicly disclose any

3

final prior feasibility studies and/or evaluation reports completed in a subsequent procurement

4

regarding a project.

5

     37-2-17. Method of source selection.

6

     Except for purchases solicited pursuant to the provisions for small purchases set forth in §

7

37-2-22, all state contracts and purchases shall be solicited through utilization of the Rhode Island

8

Vendor Information Program (RIVIP)the State’s eProcurement system as set forth in § 37-2-17.1.

9

Except as otherwise authorized by law, all state contracts shall be awarded by:

10

     (1) Competitive sealed offers, pursuant to § 37-2-18;

11

     (2) Competitive negotiation, pursuant to §§ 37-2-19 and 37-2-20;

12

     (3) Emergency procurements, sole source procurements, and Nnoncompetitive

13

negotiation, pursuant to § 37-2-21;

14

     (4) Small purchase procedures, pursuant to § 37-2-22; or

15

     (5) Reverse auctions, pursuant to § 37-2-18.1.

16

     37-2-17.1. Rhode Island vendor information program (RIVIP) Rhode Island

17

eProcurement System.

18

     (a) The chief purchasing officer is directed to institute an electronic vendor information

19

program which shall enable all solicitations invitations for bid and requests for a proposal to be

20

accessed electronically by all potential vendors. This program is to be readily accessible through

21

public access stations located at the following locations:

22

     (1) One Capitol Hill, Providence, Rhode Island;

23

     (2) City hall, town hall or public library of each of the thirty-nine (39) cities and towns in

24

the state.

25

     (b) Further, the vendor information program shall be accessible to potential vendors

26

through means of computer modem.

27

     (c) The chief purchasing officer may contract with auctioneers as defined in § 37-2-15(10)

28

to conduct electronic reverse auctions, provided that notification of the opportunity to participate

29

in the auction is posted on the RIVIP in accordance with the requirements of § 37-2-25.1.

30

     (d) Any reference to Rhode Island vendor information program (RIVIP) in this chapter

31

shall be amended to the Rhode Island eProcurement System.

32

     37-2-17.2. Utilization of department of administration Rhode Island vendor

33

information program (RIVIP) Utilization of department of administration eProcurement

34

system.

 

LC004143 - Page 92 of 226

1

     All public agencies as defined by § 37-2-7(16) shall utilize the RIVIP eProcurement system

2

established by the chief purchasing officer for state agencies (director of the department of

3

administration) to implement the requirements of §§ 37-2-17 and 37-2-17.1. The director of

4

administration shall be authorized to assess prorated charges to public agencies to offset costs for

5

acquisition of equipment, computer and other development, consultant services, installation of

6

equipment, software, communications lines, initial and ongoing training and outreach, maintenance

7

and any other costs of implementing and operating the department of administration RIVIP

8

eProcurement system.

9

     37-2-18. Competitive sealed bidding.

10

     (a) Contracts exceeding the amount provided by § 37-2-22 or authorized under the

11

procurement methods in § 37-2-17 shall be awarded by competitive sealed bidding unless it is

12

determined in writing that this method is not practicable or that the best value for the state may be

13

obtained by using an electronic reverse auction as set forth in § 37-2-18.1. Factors to be considered

14

in determining whether competitive sealed bidding is practicable shall include whether:

15

     (1) Specifications can be prepared that permit award on the basis of either the lowest bid

16

price or the lowest evaluated bid price; and

17

     (2) The available sources, the time and place of performance, and other relevant

18

circumstances as are appropriate for the use of competitive sealed bidding.

19

     (b) The invitation for bids solicitation shall state whether the award shall be made on the

20

basis of the lowest bid price or the lowest evaluated or responsive bid price. If the latter basis is

21

used the selection is not made on the basis of lowest price, the objective measurable criteria to be

22

utilized shall be set forth in the invitation for bids solicitation, if available. Subject to chapter 38-2,

23

the Access to Public Records Act, Aall documents submitted in response to the bid proposal are

24

public pursuant to chapter 38-2 upon opening of the bids shall be made public upon the opening of

25

the bids and are posted on the State’s eProcurement system for public inspection. The invitation

26

for bids shall state that each bidder must submit a copy of their bid proposal to be available for

27

public inspection upon the opening of the bids. The burden to identify and withhold from the public

28

copy that is released at the bid opening any trade secrets, commercial or financial information, or

29

other information the bidder deems not subject to public disclosure pursuant to chapter 38-2, the

30

Access to Public Records Act, shall rest with the bidder submitting the bid proposal.

31

     (c) Unless the invitations for bid are accessible under the provisions as provided in § 37-2-

32

17.1 Through the eProcurement system, public notice of the invitation for bids solicitation shall be

33

given a sufficient time prior to the date set forth therein for the opening of bids. Public notice may

34

include publication in a newspaper of general circulation in the state as determined by the

 

LC004143 - Page 93 of 226

1

purchasing agent not less than seven (7) days nor more than twenty-eight (28) days before the date

2

set for the opening of the bids. The purchasing agent may make a written determination that the

3

twenty-eight (28) day limitation needs to be waived. The written determination shall state the

4

reason why the twenty-eight (28) day limitation is being waived and shall state the number of days,

5

giving a minimum and maximum, before the date set for the opening of bids when public notice is

6

to be given.

7

     (d) Bids shall be opened and read aloud publicly posted on the eProcurement system at the

8

time and place designated in the invitation for bids solicitation. Each bid, together with the name

9

of the bidder, shall be recorded and an abstract made available for public inspection posted on the

10

eProcurement system unless otherwise provided herein.

11

     (e) The chief purchasing officer shall adopt and file regulations governing the bidding of

12

highway and bridge construction projects in the state not later than December 31, 2011.

13

      (f) (e) Immediately subsequent to the opening of the bids, the copies of bid documents

14

submitted pursuant to subsection 37-2-18(b) shall be made available for inspection by the public.

15

Any objection to any bid on the grounds that it is nonresponsive to the invitation for bids solicitation

16

must be filed with the purchasing agent within five (5) business days of the opening of the bids.

17

The purchasing agent shall issue a written determination as to whether the subject bid is

18

nonresponsive addressing each assertion in the objection and shall provide a copy of the

19

determination to the objector and all those who submitted bids at least seven (7) business days prior

20

to the award of the contract. If a bid is nonresponsive to the requirements in the invitation to bid,

21

the bid is invalid and the purchasing agent shall reject the bid. The purchasing agent shall have no

22

discretion to waive any requirements in the invitation to bid which are identified as mandatory.

23

Nothing in this section shall be construed to interfere with or invalidate the results of the due

24

diligence conducted by the division of purchasing to determine whether bids are responsive and

25

responsible.

26

     (g) Subsequent to the awarding of the bid, all documents pertinent to the awarding of the

27

bid that were not made public pursuant to subsection 37-2-18(e) 37-2-18 (b) shall be made available

28

and open to public inspection, pursuant to chapter 38-2, the Access to Public Records Act, and

29

retained in the bid file. The copy of the bid proposal provided pursuant to subsection 37-2-18(b)

30

shall be retained until the bid is awarded.

31

     (h) The contract shall be awarded with reasonable promptness by written notice to the

32

responsive and responsible bidder whose bid is either the lowest bid price, lowest evaluated, or

33

responsive bid price.

34

     (i) Correction or withdrawal of bids may be allowed only to the extent permitted by

 

LC004143 - Page 94 of 226

1

regulations issued by the chief purchasing officer.

2

     (j) As of January 1, 2011, this section shall apply to contracts greater than one million

3

dollars ($1,000,000); on January 1, 2012 for all contracts greater than seven hundred fifty thousand

4

dollars ($750,000); on January 1, 2013 for all contracts greater than five hundred thousand dollars

5

($500,000); and on January 1, 2014 for all contracts awarded pursuant to this section. All available

6

contracts awarded under this section shall be posted on the eProcurement system.

7

     37-2-18.2. Exemption from competitive bidding.

8

     (a) The three (3) public institutions of higher education (the University of Rhode Island,

9

Rhode Island College and the Community College of Rhode Island) shall be exempt from the

10

competitive bidding process provisions of this chapter for research or research related activity

11

funded with federal funds or other third-party funds subject to rules and regulations promulgated

12

by the board of governors for higher education office of the postsecondary commissioner.

13

     (b) In the event that none of the three Rhode Island public institutions of higher education

14

can provide the services for research or research-related activity, private institutions of higher

15

education shall also be exempted from the competitive bidding process provisions of this chapter

16

for research or research related activity funded with federal funds or other third-party funds.

17

     (c) The State of Rhode Island has a large number of well-qualified institutions of higher

18

education. In instances where two (2) or more institutions of higher education can provide the

19

services covered by this section, preference shall be given to the institution of higher education that

20

is located within Rhode Island, all other factors being equal.

21

     37-2-19. Competitive negotiation.

22

     (a) When, under regulations issued by the chief purchasing officer, the purchasing agent

23

determines in writing that the use of competitive sealed bidding is not practicable, and except as

24

provided in §§ 37-2-21 and 37-2-22, a contract may be awarded by competitive negotiation.

25

     (b) Adequate public notice of the request for proposals to be negotiated shall be given in

26

the same manner as provided in § 37-2-18(c).

27

     (c) The request for proposals shall indicate the relative importance of price and other

28

evaluation factors.

29

     (d) Written or oral discussions may be conducted with all responsible offerors who submit

30

proposals determined in writing to be reasonably susceptible of being selected for award. All oral

31

discussions conducted with responsible offerors who submit proposals shall be memorialized in

32

writing and all such writings shall be deemed public record at the time the contract is awarded and

33

shall be made available for public inspection. Discussions shall not disclose any information

34

derived from proposals submitted by competing offerors.

 

LC004143 - Page 95 of 226

1

     (e) An award shall be made to the responsible offeror whose proposal is determined in

2

writing to be the most advantageous to the state, taking into consideration price and the evaluation

3

factors set forth in the request for proposals. Discussions need not be conducted if the purchasing

4

agent makes a written determination concerning one or more of the following:

5

     (1) With respect to prices, where the prices are fixed by law or regulation, except that

6

consideration shall be given to competitive terms and conditions;

7

     (2) Where time of delivery or performance will not permit discussions; or

8

     (3) Where it can be clearly demonstrated and documented from the existence of adequate

9

competition or accurate prior cost experience with the particular supply, service, or construction

10

item that acceptance of an initial offer without discussion would result in fair and reasonable prices,

11

and the request for proposals notifies all offerors of the possibility that an award may be made on

12

the basis of the initial offers.

13

     (f) Where time permits, the State Purchasing Agent may authorize a best and final offer

14

process to clarify requirements when there is a substantial price discrepancy among bidders or when

15

the cost exceeds the budget or in any circumstance determined to be in the best interest of the state.

16

     37-2-20. Negotiations after unsuccessful competitive sealed bidding Negotiations after

17

unsuccessful solicitation.

18

     (a) In the event that all The State Purchasing Agent may authorize negotiation when bids

19

submitted pursuant to competitive sealed bidding under § 37-2-18 result in bid prices in excess of

20

the funds available, to clarify requirements or where there is a substantial price discrepancy or in

21

any circumstance determined to be in the best interest of the state. for the purchase and the chief

22

purchasing officer determines in writing The State Purchasing Agent shall consider the following:

23

     (1) That there are no additional funds available from any source so as to permit an award

24

to the lowest responsive and responsible bidder, and

25

     (2) The best interest of the state will not permit the delay attendant to a resolicitation under

26

revised specifications, or for revised quantities, under competitive sealed bidding as provided in §

27

37-2-18, then a negotiated award may be made as set forth in subsection (b) or (d) of this section.

28

     (b) Where there is more than one bidder offeror, competitive negotiations, pursuant to §

29

37-2-19, shall may be conducted with the three (3) (or two (2) if there are only two (2)) bidders

30

offerors determined in writing to be the lowest responsive and responsible bidders, or the highest

31

scoring offerors, to the competitive sealed bid solicitation invitation. Competitive negotiations shall

32

be conducted under the following restrictions:

33

     (1) If discussions pertaining to the revision of the specifications or quantities are held with

34

any potential offeror, all other potential offerors shall be afforded an opportunity to take part in

 

LC004143 - Page 96 of 226

1

such discussions; and

2

     (2) A request for proposals, based upon revised specifications or quantities, best and final

3

offer shall be issued as promptly as possible, shall provide for an expeditious response to the revised

4

requirements, and shall be awarded upon the basis of the lowest bid price, or lowest evaluated bid

5

price the highest score submitted by any responsive and responsible offeror.

6

     (c) Contracts may be competitively negotiated when it is determined in writing by the

7

purchasing agent that the bid prices received by competitive sealed bidding were not independently

8

reached in open competition, and for which:

9

     (1) Each competitive bidder has been notified of the intention to negotiate and is given

10

reasonable opportunity to negotiate; and

11

     (2) The negotiated price is lower than the lowest rejected bid by any competitive bidder;

12

and

13

     (3) The negotiated price is the lowest negotiated price offered by a competitive offeror.

14

     (d) When, after competitive sealed bidding solicitation, it is determined in writing that there

15

is only one responsive and responsible bidder, a negotiated award may be made with the bidder

16

subject to the provisions of § 37-2-28.

17

     37-2-25.1. Prequalification of vendors for electronic reverse auctions.

18

     (a) Potential bidders shall be prequalified for participation in each electronic auction.

19

     (b) A request for qualifications shall be issued stating the intent to conduct a reverse auction

20

in accordance with the provisions of § 37-2-18.1. The request for qualifications shall identify the

21

goods and services to be purchased and the criteria to be used to determine how many and/or which

22

bidders will be selected to participate in the reverse auction. All requests for qualifications shall be

23

solicited through utilization of the Rhode Island Vendor Information Program (RIVIP)

24

eProcurement system as set forth in § 37-2-17.1.

25

     (c) Participants shall be selected based on the criteria set forth in the request for

26

qualifications, including agreement to any terms, conditions or other requirements of the

27

solicitation. Written or oral discussions may be conducted with all responsible vendors determined

28

in writing to be reasonably susceptible of being selected for award.

29

     (d) Prior to the execution of the auction potential bidders shall be required to receive

30

instruction on the use of the selected electronic bidding procedure. Only bidders who successfully

31

complete the training phase of prequalification shall be permitted to participate in the electronic

32

reverse auction specified in the request for qualifications.

33

     37-2-54. Chief purchasing officer — Purchases.

34

     (a) The chief purchasing officer, except as otherwise provided by law, shall purchase, or

 

LC004143 - Page 97 of 226

1

delegate and control the purchase of, the combined requirements of all spending agencies of the

2

state including, but not limited to, interests in real property, contractual services, rentals of all types,

3

supplies, materials, equipment, and services, except that competitive bids may not be required:

4

     (1) For contractual services where no competition exists such as sewage treatment, water,

5

and other public utility services;

6

     (2) When, in the judgment of the department of administration, food, clothing, equipment,

7

supplies, or other materials to be used in laboratory and experimental studies can be purchased

8

otherwise to the best advantage of the state;

9

     (3) When instructional materials are available from only one source;

10

     (4) Where rates are fixed by law or ordinance;

11

     (5) For library books;

12

     (6) For commercial items that are purchased for resale;

13

     (7) For professional, technical, or artistic services;

14

     (8) For all other commodities, equipment, and services which, in the reasonable discretion

15

of the chief purchasing officer, are available from only one source;

16

     (9) For interests in real property.

17

     (10) For works of art for museum and public display;

18

     (11) For published books, maps, periodicals, newspaper or journal subscriptions, and

19

technical pamphlets;

20

     (12) For licenses for use of proprietary or patented systems; and

21

     (13) For services of visiting speakers, professors, performing artists, and expert witnesses.;

22

and

23

     (14) For research-related activities and services provided by colleges and universities

24

within the State of Rhode Island.

25

     (b) Nothing in this section shall deprive the chief purchasing officer from negotiating with

26

vendors who maintain a general service administration price agreement with the United States of

27

America or any agency thereof or other governmental entities, provided, however, that no contract

28

executed under this provision shall authorize a price higher than is contained in the contract

29

between the general service administration and the vendor affected.

30

     (c) The department of administration shall have supervision over all purchases by the

31

various spending agencies, except as otherwise provided by law, and shall prescribe rules and

32

regulations to govern purchasing by or for all spending agencies, subject to the approval of the

33

chief purchasing officer; and shall publish a manual of procedures to be distributed to agencies and

34

to be revised upon issuance of amendments to the procedures. No purchase or contract shall be

 

LC004143 - Page 98 of 226

1

binding on the state or any agency thereof unless approved by the department or made under general

2

regulations which the chief purchasing officer may prescribe.

3

     (d) The chief purchasing officer shall adopt regulations to require agencies to take and

4

maintain inventories of plant and equipment. The department of administration shall conduct

5

periodic physical audits of inventories.

6

     (e) The department of administration shall require all agencies to furnish an estimate of

7

specific needs for supplies, materials, and equipment to be purchased by competitive bidding for

8

the purpose of permitting scheduling of purchasing in large volume. It shall establish and enforce

9

schedules for purchasing supplies, materials, and equipment. In addition, all agencies shall submit

10

to the department of administration, prior to the beginning of each fiscal year, an estimate of all

11

needs for supplies, materials, and equipment during that year which will have to be acquired

12

through competitive bidding.

13

     (f) The director of the department of administration shall have the power: to transfer

14

between departments; to salvage; to exchange; and to condemn supplies and equipment.

15

     (g) Unless the chief purchasing officer deems it is in the best interest of the state to proceed

16

otherwise, all property (including any interest in real property) shall be sold either by invitation of

17

sealed bids or by public auction; provided, however, that the selling price of any interest in real

18

property shall not be less than the appraised value thereof as determined by the department of

19

administration or the department of transportation for the requirements of that department.

20

     (h) Subject to the provisions of this chapter, the chief purchasing officer shall purchase, or

21

otherwise acquire, all real property determined to be needed for state use, upon the approval of the

22

state properties committee as to the determination of need and as to the action of purchase or other

23

acquisition, provided that the amount paid shall not exceed the appraised value as determined by

24

the department of transportation (for such requirements of that department) or value set by eminent

25

domain procedure.

26

     (i) The department of administration shall maintain records of all purchases and sales made

27

under its authority and shall make periodic summary reports of all transactions to the chief

28

purchasing officer, the governor, and the general assembly. The chief purchasing officer shall also

29

report trends in costs and prices, including savings realized through improved practices, to the

30

governor and general assembly.

31

     (j) The chief purchasing officer shall attempt in every practicable way to insure that the

32

state is supplying its real needs at the lowest possible cost. Further, to assure that the lowest possible

33

cost is achieved, the chief purchasing officer may enter into cooperative purchasing agreements

34

with other governmental public entities and institutions of higher education.

 

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1

     37-2-56. Purchasing for municipalities and regional school districts. Purchasing for

2

municipalities, and regional school districts, and institutions of higher education.

3

     Any municipality, or regional school district, or institution of higher education of the state

4

may participate in state master price agreement contracts for the purchase of materials, supplies,

5

services and equipment entered into by the purchasing agent, provided, however, that the contractor

6

is willing, when requested by the municipality, or school district, or institution of higher education,

7

to extend the terms and conditions of the contract and that the municipality, or school district, or

8

institution of higher education will be responsible for payment directly to the vendor under each

9

purchase contract. Unless a state contract is the result of an intergovernmental cooperative purchase

10

contract to which a municipality, or school district, or institution of higher education is a party, the

11

purchasing agent shall not compel a successful bidder to extend the same terms and conditions to

12

a municipality, or school district, or institution of higher education. However, the purchasing agent

13

may, in the interest of obtaining better pricing on behalf of the state and local entities, solicit offers

14

based upon anticipated master price agreement utilization by municipalities, and school districts,

15

and institutions of higher education.

16

     SECTION 21. Section 37-2-9.1 of the General Laws in Chapter 37-2 entitled "State

17

Purchases” is hereby repealed in its entirety.

18

     § 37-2-9.1. Bidder registration fee.

19

     The chief purchasing officer may adopt regulations to establish an annual fee, of not less

20

than twenty-five dollars ($25.00), which shall be paid by all potential bidders requesting to

21

subscribe to solicitation mailings for public bids for specific types of supplies, services, and

22

construction during a fiscal year, and may waive that fee for Rhode Island firms. Additionally, the

23

chief purchasing agent officer may delegate to the purchasing agent the authority to waive that fee

24

for an individual solicitation and to include unregistered bidders in the solicitation in the interest of

25

expanding competition. Nothing herein shall prevent any interested party from submitting a bid in

26

response to any solicitation of which they become aware.

27

     SECTION 22. Chapter 37-14.2 of the General Laws entitled “Micro Business Act” is

28

hereby repealed in its entirety.

29

     § 37-14.2-1. Short title.

30

     This chapter shall be known and may be cited as “The Micro Businesses Act.”

31

     § 37-14.2-2. Purpose.

32

     The purpose of this chapter is to carry out the state’s policy of supporting the fullest

33

possible participation of micro businesses in the economic activity in the state of Rhode Island,

34

including, but not limited to, state-directed public construction programs and projects and in-state

 

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1

purchases of goods and services. The purpose of this chapter includes assisting micro businesses

2

throughout the life of any contracts with the state of Rhode Island or its agencies.

3

     § 37-14.2-3. Definitions.

4

     As used in this chapter, the following words and terms shall have the following meanings

5

unless the context shall clearly indicate another or different meaning or intent:

6

     (1) “Contract” means a mutually binding legal relationship, or any modification thereof,

7

obligating the seller to furnish supplies or services, including construction, and the buyer to pay for

8

them. As used in this chapter, a lease is a contract.

9

     (2) “Contractor” means one who participates, through a contract or subcontract, in any

10

procurement or program covered by this chapter and includes lessees and material suppliers.

11

     (3) “Micro business” means a Rhode Island-based business entity, regardless of whether it

12

is in the form of a corporation, limited liability company, limited partnership, general partnership,

13

or sole proprietorship, that has a total of ten (10) or fewer members, owners, and employees and

14

has gross sales totaling five hundred thousand dollars ($500,000) or less.

15

     (4) “MB coordinator” means the official designated to have overall responsibility for

16

promoting, coordinating, documenting, and implementing efforts related to micro businesses.

17

     (5) “Registered” means those micro businesses that have provided their business name,

18

address, owner-contact information, number of employees, and annual gross sales to the department

19

of administration.

20

     § 37-14.2-4. Compilation and reporting of data on micro businesses.

21

     (a) The department of administration shall compile and maintain data on the existence of

22

registered micro businesses to facilitate the achievement of the purpose of this chapter. Within sixty

23

(60) days of the effective date of this statute [July 20, 2016], the department of administration shall

24

submit a report to the governor and general assembly that describes the methodology being used to

25

compile such data and to report annual utilization of registered, micro businesses in state-directed

26

public construction programs and projects and in-state purchases of goods and services. The report

27

shall be made public contemporaneously with its submission to the governor and general assembly.

28

     (b) The department of administration shall maintain a micro business registration database

29

that shall include the business name, address, owner-contact information, number of employees,

30

and annual gross sales. Such registration of micro businesses with the department of administration

31

shall be on a voluntary basis, and does not supersede any mandated, business-registration

32

requirements with the secretary of state or other general offices, as well as with any city or town as

33

applicable.

34

     (c) On or before January 1, 2017, and on or before the first day of January in all years

 

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1

thereafter, the department of administration shall submit a report to the governor and general

2

assembly consisting of data concerning the registration of micro businesses in the state. The data

3

shall include, but not be limited to: the number of registered micro businesses; the distribution of

4

registered, micro businesses among the thirty-nine (39) cities or towns in the state; the number of

5

registered, micro businesses that are also Rhode Island-certified minority business enterprises; and

6

the number of registered, micro businesses that are also Rhode Island-certified women business

7

enterprises.

8

     (d) At the request of the director of the department of administration, the secretary of state,

9

or all other general officers of the state, all agencies of the state and all cities and towns shall make

10

reasonable modifications to their record keeping procedures to facilitate the compilation of data

11

concerning the existence of micro businesses in Rhode Island.

12

     SECTION 23. Section 41-5-23 of the General Laws in Chapter 41-5 entitled “Boxing and

13

Wrestling” is hereby repealed.

14

§ 41-5-23. Annual report to general assembly.

15

The division of gaming and athletics licensing shall make an annual report to the general

16

assembly on or before the first Wednesday in February, together with any recommendations for

17

legislation, that it may deem desirable.

18

     SECTION 24. Section 42-11-2 of the General Laws in Chapter 42-11entitled “Department

19

of Administration” is hereby amended as follows:

20

     42-11-2. Powers and duties of department.

21

     The department of administration shall have the following powers and duties:

22

     (1) To prepare a budget for the several state departments and agencies, subject to the

23

direction and supervision of the governor;

24

     (2) To administer the budget for all state departments and agencies, except as specifically

25

exempted by law;

26

     (3) To devise, formulate, promulgate, supervise, and control accounting systems,

27

procedures, and methods for the state departments and agencies, conforming to such accounting

28

standards and methods as are prescribed by law;

29

     (4) To purchase or to contract for the supplies, materials, articles, equipment, printing, and

30

services needed by state departments and agencies, except as specifically exempted by law;

31

     (5) To prescribe standard specifications for those purchases and contracts and to enforce

32

compliance with specifications;

33

     (6) To supervise and control the advertising for bids and awards for state purchases;

34

     (7) To regulate the requisitioning and storage of purchased items, the disposal of surplus

 

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1

and salvage, and the transfer to or between state departments and agencies of needed supplies,

2

equipment, and materials;

3

     (8) To maintain, equip, and keep in repair the state house, state office building, and other

4

premises owned or rented by the state for the use of any department or agency, excepting those

5

buildings, the control of which is vested by law in some other agency;

6

     (9) To provide for the periodic inspection, appraisal or inventory of all state buildings and

7

property, real and personal;

8

     (10) To require reports from state agencies on the buildings and property in their custody;

9

     (11) To issue regulations to govern the protection and custody of the property of the state;

10

     (12) To assign office and storage space and to rent and lease land and buildings for the use

11

of the several state departments and agencies in the manner provided by law;

12

     (13) To control and supervise the acquisition, operation, maintenance, repair, and

13

replacement of state-owned motor vehicles by state agencies;

14

     (14) To maintain and operate central duplicating and mailing service for the several state

15

departments and agencies;

16

     (15) To furnish the several departments and agencies of the state with other essential office

17

services;

18

     (16) To survey and examine the administration and operation of the state departments and

19

agencies, submitting to the governor proposals to secure greater administrative efficiency and

20

economy, to minimize the duplication of activities, and to effect a better organization and

21

consolidation of functions among state agencies;

22

     (17) To operate a merit system of personnel administration and personnel management as

23

defined in § 36-3-3 in connection with the conditions of employment in all state departments and

24

agencies within the classified service;

25

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

26

powers established by this chapter to any agency within the department;

27

     (19) To establish, maintain, and operate a data processing center or centers, approve the

28

acquisition and use of electronic data processing services by state agencies, furnish staff assistance

29

in methods, systems and programming work to other state agencies, and arrange for and effect the

30

centralization and consolidation of punch card and electronic data processing equipment and

31

services in order to obtain maximum utilization and efficiency;

32

     (20) To devise, formulate, promulgate, supervise, and control a comprehensive and

33

coordinated statewide information system designed to improve the database used in the

34

management of public resources, to consult and advise with other state departments and agencies

 

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1

and municipalities to assure appropriate and full participation in this system, and to encourage the

2

participation of the various municipalities of this state in this system by providing technical or other

3

appropriate assistance toward establishing, within those municipalities, compatible information

4

systems in order to obtain the maximum effectiveness in the management of public resources;

5

     (i) The comprehensive and coordinated statewide information system may include a Rhode

6

Island geographic information system of land-related economic, physical, cultural and natural

7

resources.

8

     (ii) In order to ensure the continuity of the maintenance and functions of the geographic

9

information system, the general assembly may annually appropriate such sum as it may deem

10

necessary to the department of administration for its support;

11

     (21) To administer a statewide planning program including planning assistance to the state

12

departments and agencies;

13

     (22) To administer a statewide program of photography and photographic services;

14

     (23) To negotiate with public or private educational institutions in the state, in cooperation

15

with the department of health, for state support of medical education;

16

     (24) To promote the expansion of markets for recovered material and to maximize their

17

return to productive economic use through the purchase of materials and supplies with recycled

18

content by the state of Rhode Island to the fullest extent practically feasible;

19

     (25) To approve costs as provided in § 23-19-32;

20

     (26) To provide all necessary civil service tests for individuals seeking employment as

21

social workers at the department of human services at least twice each year and to maintain an

22

adequate hiring list for this position at all times;

23

     (27)(i) To prepare a report every three (3) months of all current property leases or rentals

24

by any state or quasi-state agency to include the following information:

25

     (A) Name of lessor;

26

     (B) Description of the lease (purpose, physical characteristics, and location);

27

     (C) Cost of the lease;

28

     (D) Amount paid to date;

29

     (E) Date initiated;

30

     (F) Date covered by the lease.

31

     (ii) To prepare a report by October 31, 2014, of all current property owned by the state or

32

leased by any state agency or quasi-state agency to include the following information:

33

     (A) Total square feet for each building or leased space;

34

     (B) Total square feet for each building and space utilized as office space currently;

 

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1

     (C) Location of each building or leased space;

2

     (D) Ratio and listing of buildings owned by the state versus leased;

3

     (E) Total occupancy costs which shall include capital expenses, provided a proxy should

4

be provided to compare properties that are owned versus leased by showing capital expenses on

5

owned properties as a per square foot cost at industry depreciation rates;

6

     (F) Expiration dates of leases;

7

     (G) Number of workstations per building or leased space;

8

     (H) Total square feet divided by number of workstations;

9

     (I) Total number of vacant workstations;

10

     (J) Percentage of vacant workstations versus total workstations available;

11

     (K) Date when an action is required by the state to renew or terminate a lease;

12

     (L) Strategic plan for leases commencing or expiring by June 30, 2016;

13

     (M) Map of all state buildings which provides: cost per square foot to maintain, total

14

number of square feet, total operating cost, date each lease expires, number of persons per building

15

and total number of vacant seats per building; and

16

     (N) Industry benchmark report which shall include total operating cost by full-time

17

equivalent employee, total operating cost by square foot and total square feet divided by full-time

18

equivalent employee;

19

     (28) To prepare a report to the chairs of the house and senate finance committees by

20

December 15, 2021, and each year thereafter of all current property owned by the state or leased

21

by any state agency or quasi-state agency to include the following information:

22

     (i) Total square feet for each building or leased space;

23

     (ii) Total square feet for each building and space utilized as office space currently;

24

     (iii) Location of each building or leased space;

25

     (iv) Ratio and listing of buildings owned by the state versus leased;

26

     (v) Total occupancy costs which shall include capital expenses, provided a proxy should

27

be provided to compare properties that are owned versus leased by showing capital expenses on

28

owned properties as a per square foot cost at industry depreciation rates;

29

     (vi) Expiration dates of leases;

30

     (vii) Number of workstations per building or leased space;

31

     (viii) Total square feet divided by number of workstations;

32

     (ix) Total number of vacant workstations;

33

     (x) Percentage of vacant workstations versus total workstations available;

34

     (xi) Date when an action is required by the state to renew or terminate a lease;

 

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1

     (xii) Strategic plan for leases commencing or expiring by June 30, 2022, and each

2

subsequent year thereafter;

3

     (xiii) Map of all state buildings that provides: cost per square foot to maintain, total number

4

of square feet, total operating cost, date each lease expires, number of persons per building and

5

total number of vacant seats per building; and

6

     (xiv) Industry benchmark report that shall include total operating cost by full-time

7

equivalent employee, total operating cost by square foot and total square feet divided by full-time

8

equivalent employee;

9

     (29) To provide by December 31, 1995, the availability of automatic direct deposit to any

10

recipient of a state benefit payment, provided that the agency responsible for making that payment

11

generates one thousand (1,000) or more such payments each month;

12

     (30) To encourage municipalities, school districts, and quasi-public agencies to achieve

13

cost savings in health insurance, purchasing, or energy usage by participating in state contracts, or

14

by entering into collaborative agreements with other municipalities, districts, or agencies. To assist

15

in determining whether the benefit levels including employee cost sharing and unit costs of such

16

benefits and costs are excessive relative to other municipalities, districts, or quasi-public agencies

17

as compared with state benefit levels and costs; and

18

     (31) To administer a health benefit exchange in accordance with chapter 157 of this title.

19

     SECTION 25. Section 42-17.1-2 of the General Laws in Chapter 42-17.1 entitled

20

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

21

     42-17.1-2. Powers and duties.

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

bureaus;

14

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

15

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

16

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

17

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

18

and recreation;

19

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

20

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

21

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

22

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

23

law relating to the division of harbors and rivers;

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

and recreation;

 

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1

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

2

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

3

203 of the Public Laws, 1960;

4

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

5

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

6

limited;

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

department as the corporation shall reasonably require for its operation;

15

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

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

council under chapter 23 of title 46, as amended;

27

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

28

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

29

disposal systems;

30

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

31

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

32

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

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

property within thirty (30) days after correction;

12

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

13

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

14

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

15

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

16

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

17

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

18

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

19

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

20

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

21

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

22

application of the standards and methods in Jamestown;

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

termination.

10

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

11

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

12

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

13

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

14

regulations established by the director;

15

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

16

necessary to carry out his or her responsibilities under any provision of law subject to the following

17

provisions:

18

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

19

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

20

warrant is otherwise allowed or provided by law;

21

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

22

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

23

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

24

following circumstances, in accordance with the applicable constitutional standards:

25

     (I) For closely regulated industries;

26

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

27

     (III) In emergency situations;

28

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

29

or welfare;

30

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

31

consents; or

32

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

33

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

34

director in his or her discretion deems it advisable, an administrative search warrant, or its

 

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1

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

2

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

3

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

4

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

5

to applications for administrative search warrants;

6

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

7

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

8

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

9

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

10

time, the court orders otherwise;

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

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

19

taken;

20

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

21

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

22

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

23

location is being inspected;

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

violation of any provision of law within his or her jurisdiction or of any rule or regulation adopted

33

pursuant to authority granted to him or her. Nothing in this chapter shall limit the authority of the

34

attorney general to prosecute offenders as required by law;

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

compliance order stating the existence of the violation and the action he or she deems necessary.

13

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

14

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

15

may be made;

16

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

17

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

18

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

19

     (iii) The director may, at his or her discretion and for the purposes of timely and effective

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

order;

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

provided by law;

9

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

10

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

11

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

12

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

13

certiorari;

14

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

15

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

16

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

17

chapter:

18

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

19

the state of Rhode Island or his or her duly authorized agent;

20

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

21

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

22

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

23

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

24

     (iii) Service:

25

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

26

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

27

of the corporation;

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

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1

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

2

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

3

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

4

interest;

5

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

6

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

7

private firms, individuals, and foundations, for the purpose of carrying out his or her lawful

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

Rhode Island residents and visitors;

19

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

20

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

21

funds;

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

division.

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

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

19

of the funds;

20

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

21

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

22

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

23

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

24

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

25

lands;

26

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

27

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

28

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

29

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

30

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

31

document submitted by a land trust;

32

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

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

of reasonable dues;

15

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

16

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

17

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

18

dissolution of the land trust;

19

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

20

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

21

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

22

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

23

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

24

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

25

and public land trust land holdings in Rhode Island;

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

benefit of the designated trust lands;

9

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

10

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

11

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

12

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

13

tanks;

14

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

15

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

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

Financial Responsibility Act, as amended;

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

research;

8

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

9

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

10

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

11

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

12

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

13

as promote healthy freshwater riverine ecosystems;

14

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

15

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

16

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

17

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

18

components:

19

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

20

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

21

regulations and requirements;

22

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

23

department;

24

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

25

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

26

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

27

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

28

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

29

submissions to the department;

30

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

31

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

32

opportunities to minimize environmental impact; improve the potential for sustainable

33

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

34

process on permit applications related to the proposed project;

 

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1

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

2

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

3

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

4

and efficient review process that meets environmental objectives; and

5

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

6

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

7

prior to initiation of projects. The department shall work with the office of regulatory reform to

8

evaluate the potential for adopting alternative compliance approaches and provide a report to the

9

governor and the general assembly by May 1, 2015;

10

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

11

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

12

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

13

of watercraft;

14

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

15

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

16

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

17

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

18

to consumers;

19

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

20

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

21

reasonably have been foreseen; and

22

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

23

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

24

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

25

deemed necessary; and

26

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

27

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

28

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

29

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

30

and any other related purpose.

31

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

32

description of the area to be designated.

33

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

34

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

 

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

administrative proceeding.

10

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

11

pursuant to § 42-35-2.10.

12

     SECTION 26. Section 42-64-36 of the General Laws in Chapter 42-64 entitled “Rhode

13

Island Commerce Corporation” is hereby amended to read as follows:

14

     42-64-36. Program accountability.

15

     (a) The board of the Rhode Island commerce corporation shall be responsible for

16

establishing accountability standards, reporting standards, and outcome measurements for each of

17

its programs to include, but not be limited to, the use of tax credits, loans, loan guarantees, and

18

other financial transactions managed or utilized by the corporation. Included in the standards shall

19

be a set of principles and guidelines to be followed by the board to include:

20

     (1) A set of outcomes against which the board will measure each program’s and offering’s

21

effectiveness;

22

     (2) A set of standards for risk analysis for all of the programs especially the loans and loan

23

guarantee programs; and

24

     (3) A process for reporting out all loans, loan guarantees, and any other financial

25

commitments made through the corporation that includes the purpose of the loan, financial data as

26

to payment history, and other related information.

27

     (b) The board shall annually prepare a report starting in January 2015 which shall be

28

submitted to the house and senate. The report shall summarize the above listed information on each

29

of its programs and offerings and contain recommendations for modification, elimination, or

30

continuation.

31

     (c) The commerce corporation shall prepare a report beginning January 1, 2019, which

32

shall be submitted to the house and senate within a period of thirty (30) forty-five (45) days of the

33

close of each quarter. The report shall summarize the information listed in subsection (a) of this

34

section on each of its programs and offerings, including any modifications, adjustments, clawbacks,

 

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1

reallocations, alterations, or other changes, made from the close of the prior fiscal quarter and

2

include comparison data to the reports submitted pursuant to §§ 42-64.20-9(b), 42-64.21-8(a) and

3

(c), 42-64.22-14(a), 42-64.23-5(d), 42-64.24-5(d), 42-64.25-12, 42-64.26-6, 42-64.27-4, 42-64.28-

4

9, 42-64.29-7(a), 42-64.31-3, 44-48.3-13(b) and (c), chapters 64.20, 64.21, 64.22, 64.23, 64.24,

5

64.25, 64.26, 64.27, 64.28, 64.29, 64.30, 64.31, 64.32 of title 42 and § 44-48.3-13.

6

     (d) The board shall coordinate its efforts with the office of revenue analysis to not duplicate

7

information on the use of tax credits and other tax expenditures.

8

     SECTION 27. Section 42-64.19-3 of the General Laws in Chapter 42-64.19 entitled

9

“Executive Office of Commerce” is hereby amended to read as follows:

10

     42-64.19-3. Executive office of commerce.

11

     (a) There is hereby established within the executive branch of state government an

12

executive office of commerce effective February 1, 2015, to serve as the principal agency of the

13

executive branch of state government for managing the promotion of commerce and the economy

14

within the state and shall have the following powers and duties in accordance with the following

15

schedule:

16

     (1) On or about February 1, 2015, to operate functions from the department of business

17

regulation;

18

     (2) On or about April 1, 2015, to operate various divisions and functions from the

19

department of administration;

20

     (3) On or before September 1, 2015, to provide to the Senate and the House of

21

Representatives a comprehensive study and review of the roles, functions, and programs of the

22

department of administration and the department of labor and training to devise recommendations

23

and a business plan for the integration of these entities with the office of the secretary of commerce.

24

The governor may include such recommendations in the Fiscal Year 2017 budget proposal; and

25

     (4) On or before July 1, 2021, to provide for the hiring of a deputy secretary of commerce

26

and housing who shall report directly to the secretary of commerce. On July 1, 2022, the deputy

27

secretary of commerce and housing shall succeed to the position of secretary of housing, and the

28

position of deputy secretary of commerce and housing shall cease to exist under this chapter. All

29

references in the general laws to the deputy secretary of commerce and housing shall be construed

30

to mean the secretary of housing. The secretary of housing shall be appointed by and report directly

31

to the governor and shall assume all powers, duties, and responsibilities formerly held by the deputy

32

secretary of commerce and housing. Until the formation of the new department of housing pursuant

33

to chapter 64.34 of this title, the secretary of housing shall reside within the executive office of

34

commerce for administrative purposes only. The secretary of housing shall:

 

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1

     (i) Prior to hiring, have completed and earned a minimum of a master’s graduate degree in

2

the field of urban planning, economics, or a related field of study or possess a juris doctor law

3

degree. Preference shall be provided to candidates having earned an advanced degree consisting of

4

an L.L.M. law degree or Ph.D. in urban planning or economics. Qualified candidates must have

5

documented five (5) years’ full-time experience employed in the administration of housing policy

6

and/or development;

7

     (ii) Be responsible for overseeing all housing initiatives in the state of Rhode Island and

8

developing a housing plan, including, but not limited to, the development of affordable housing

9

opportunities to assist in building strong community efforts and revitalizing neighborhoods;

10

     (iii) Coordinate with all agencies directly related to any housing initiatives and participate

11

in the promulgation of any regulation having an impact on housing including, but not limited to,

12

the Rhode Island housing and mortgage finance corporation, the coastal resources management

13

council (CRMC), and state departments including, but not limited to: the department of

14

environmental management (DEM), the department of business regulation (DBR), the department

15

of transportation (DOT) and statewide planning, and the Rhode Island housing resources

16

commission;

17

     (iv) Coordinate with the housing resources commission to formulate an integrated housing

18

report to include findings and recommendations to the governor, speaker of the house, senate

19

president, each chamber’s finance committee, and any committee whose purview is reasonably

20

related to, including, but not limited to, issues of housing, municipal government, and health on or

21

before December April 315, 20215, and annually thereafter which. This report shall include, but

22

not be limited to, the following:

23

     (A) The total number of housing units in the state with per community counts, including

24

the number of Americans with Disabilities Act compliant special needs units;

25

     (B) Every three years, beginning in 2026 and contingent upon funding for data collection,

26

an assessment of the suitability of existing housing stock in meeting accessibility needs of residents;

27

     (BC) The occupancy and vacancy rate of the units referenced in subsection (a)(4)(iv)(A);

28

     (CD) The change in the number of units referenced in subsection (a)(4)(iv)(A), for each of

29

the prior three (3) years in figures and as a percentage;

30

     (DE) The number of net new units in development and number of units completed since

31

the prior report in the previous calendar year;

32

     (EF) For each municipality the number of single-family, two-family (2), and three-family

33

(3) units, and multi-unit housing delineated sufficiently to provide the lay reader a useful

34

description of current conditions, including a statewide sum of each unit type;

 

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1

     (F) The total number of units by income type;

2

     (G) A projection of the number of status quo units Every three years, beginning in 2026, a

3

projection of the number of units required to meet estimated population growth and based upon

4

household formation rates;

5

     (H) A projection of the number of units required to meet housing formation trends;

6

     (IH) A comparison of regional and other similarly situated state funding sources that

7

support housing development including a percentage of private, federal, and public support;

8

     (JI) A reporting of unit types by number of bedrooms for rental properties including an

9

accounting of all:

10

     (I) Single-family units;

11

     (II) Accessory dwelling units;

12

     (III) Two-family (2) units;

13

     (IV) Three-family (3) units;

14

     (V) Multi-unit sufficiently delineated units;

15

     (VI) Mixed use sufficiently delineated units; and

16

     (VII) Occupancy and vacancy rates for the prior three (3) years;

17

     (KJ) A reporting of unit types by ownership including an accounting of all:

18

     (I) Single-family units;

19

     (II) Accessory dwelling units;

20

     (III) Two-family (2) units;

21

     (IV) Three-family (3) units;

22

     (V) Multi-unit sufficiently delineated units;

23

     (VI) Mixed use sufficiently delineated units; and

24

     (VII) Occupancy and vacancy rates for the prior three (3) years;

25

     (LK) A reporting of the number of applications submitted or filed for each community

26

according to unit type and an accounting of action taken with respect to each application to include,

27

approved, denied, appealed, approved upon appeal, and if approved, the justification for each

28

appeal approval;

29

     (ML) A reporting of permits for each community according to affordability level that were

30

sought, approved, denied, appealed, approved upon appeal, and if approved, the justification for

31

each approval;

32

     (NM) A reporting of affordability by municipality that shall include the following:

33

     (I) The percent and number of units of extremely low-, very low-, low-, moderate-, fair-

34

market rate, and above moderate-income market-rate units; including the average and median costs

 

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1

of those units;

2

     (II) The percent and number of units of extremely low-, very low-, low-, and moderate-

3

income housing units by municipality required to satisfy the ten percent (10%) requirement

4

pursuant to chapter 24 of title 45; including the average and median costs of those units;

5

     (III) The percent and number of units for the affordability levels above moderate-income

6

housing, including a comparison to fair-market rent and fair-market homeownership; including the

7

average and median costs of those units;

8

     (IV) The percentage of cost burden by municipality with population equivalent;

9

     (V) The percentage and number of home financing sources, including all private, federal,

10

state, or other public support; and

11

     (VI) The disparities in mortgage loan financing by race and ethnicity based on Home

12

Mortgage Disclosure Act data by available geographies;

13

     (VII) The annual median gross rent cost growth for each of the previous five (5) years by

14

unit type at each affordability level, by unit type municipality; and

15

     (VIII) The annual growth in median owner-occupied home values for each of the previous

16

five (5) years by municipality;

17

     (ON) A reporting of municipal healthy housing stock by unit type and number of bedrooms

18

and providing an assessment of the state’s existing housing stock and enumerating any risks to the

19

public health from that housing stock, including, but not limited to: the presence of lead, mold, safe

20

drinking water, disease vectors (insects and vermin), and other conditions that are an identifiable

21

health detriment. Additionally, the report shall provide the percentage of the prevalence of health

22

risks by age of the stock for each community by unit type and number of bedrooms; and

23

     (PO) A recommendation shall be included with the report required under this section that

24

shall provide consideration to any and all populations, ethnicities, income levels, and other relevant

25

demographic criteria determined by the secretary, and with regard to any and all of the criteria

26

enumerated elsewhere in the report separately or in combination, provide recommendations to

27

resolve any issues that provide an impediment to the development of housing, including specific

28

data and evidence in support of the recommendation. All data and methodologies used to present

29

evidence are subject to review and approval of the chief of revenue analysis, and that approval shall

30

include an attestation of approval by the chief to be included in the report;

31

     (P) Municipal governments shall provide the Department of Housing’s requested data

32

relevant to this report on or before February 15, 2025 and annually thereafter.

33

     (v) Have direct oversight over the office of housing and community development (OHCD)

34

and shall be responsible for coordinating with the secretary of commerce a shared staffing

 

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1

arrangement until June 30, 2023, to carry out the provisions of this chapter;

2

     (vi) On or before November 1, 2022, develop a housing organizational plan to be provided

3

to the general assembly that includes a review, analysis, and assessment of functions related to

4

housing of all state departments, quasi-public agencies, boards, and commissions. Provided,

5

further, the secretary, with the input from each department, agency, board, and commission, shall

6

include in the plan comprehensive options, including the advantages and disadvantages of each

7

option and recommendations relating to the functions and structure of the new department of

8

housing.

9

     (vii) Establish rules and regulations as set forth in § 45-24-77.

10

     (b) In this capacity, the office shall:

11

     (1) Lead or assist state departments and coordinate business permitting processes in order

12

to:

13

     (i) Improve the economy, efficiency, coordination, and quality of the business climate in

14

the state;

15

     (ii) Design strategies and implement best practices that foster economic development and

16

growth of the state’s economy;

17

     (iii) Maximize and leverage funds from all available public and private sources, including

18

federal financial participation, grants, and awards;

19

     (iv) Increase public confidence by conducting customer centric operations whereby

20

commercial enterprises are supported and provided programs and services that will grow and

21

nurture the Rhode Island economy; and

22

     (v) Be the state’s lead agency for economic development.

23

     (c) The office shall include the office of regulatory reform and other administration

24

functions that promote, enhance, or regulate various service and functions in order to promote the

25

reform and improvement of the regulatory function of the state.

26

     SECTION 28. Sections 42-72.8-2, 42-72.8-2.1, 42-72.8-3 and 42-72.8-4 of the General

27

Laws in Chapter 42-72.8 entitled “Department of Children, Youth and Families Higher Education

28

Incentive Grant” are hereby amended to read as follows:

29

     42-72.8-2. Administration of program.

30

     (a) Each year the The department annually shall notify, identify and recommend from

31

among outreach to those youth in its legal custody, or who were in the Department’s legal custody

32

on their eighteenth (18th) birthday, beginning at age fourteen (14) and until the youth exits care,

33

who may satisfy the eligibility requirements prescribed in 42-72.8-2.1 those students who may be

34

eligible to apply for a for the Higher Education Opportunity Incentive Grant. The department of

 

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1

elementary and secondary education shall afford all appropriate assistance to the department in the

2

identification of youth who may be eligible for such grants. Each selected qualified applicant will

3

receive grants a grant, to the extent of available funding, to supplement federal, state, private and

4

institutional scholarships, grants and loans work-study opportunities awarded to the higher

5

education institution for the applicant in an amount not to exceed the full cost of attendance,

6

including but not limited to: tuition, fees, and room and board charges books, academic support,

7

transportation, food and housing: The department shall request from the higher education institution

8

the qualified applicant’s unmet need calculated in accordance with federal and state laws and the

9

institution’s policies. For the Workforce Development Incentive Grant, each qualified applicant

10

shall receive a grant, to the extent of available funding, in an amount not to exceed the full cost of

11

attendance, including but not limited to: training, fees, books, transportation, food, and housing

12

calculated by the department, in collaboration with the Community College of Rhode Island.

13

Payments pursuant to this chapter shall be disbursed in accordance with the requirements of the

14

higher education institution.

15

     (b) A grant period shall be limited to two (2) years of full-time study at the Community

16

College of Rhode Island, four (4) years of full-time study at Rhode Island College, and the

17

University of Rhode Island, and in no instance shall the grant period exceed a period of four (4)

18

years. Grant recipients shall be enrolled full-time and shall continue to make satisfactory progress

19

toward an academic certificate or degree as determined by the school in which they are enrolled;

20

     (c) The department shall make recommendations for grant awards from among those youth

21

who:

22

     (1) Have not yet reached the age of eighteen (18) on the day of recommendation, are in

23

the legal custody of the department on the day of recommendation and have remained in such

24

custody for at least twenty-four (24) months prior to the day of recommendation; or, for former

25

foster care, have reached the age of eighteen (18) prior to the date of recommendation, have not yet

26

reached the age of twenty-one (21) and were in the custody of the department from their sixteenth

27

(16th) to their eighteenth (18th) birthdays; and

28

     (2) Have graduated from high school or received the equivalent of a high school diploma

29

not more than one year prior to the date of recommendation; and

30

     (3) Has not reached his/her twenty-first (21st) birthday; except that youth who are

31

participating in this program on the date before his/her twenty-first (21st) birthday may remain

32

eligible until his/her twenty-third (23rd) birthday, as long as he/she continues to be considered a

33

full-time student by Community College of Rhode Island, Rhode Island College or University of

34

Rhode Island, and is making satisfactory progress, as determined by the school in which he/she is

 

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1

enrolled, toward completion of his/her degree program.

2

     42-72.8-2.1. Eligibility.

3

     (a) To be eligible for a Higher Education Opportunity Incentive Grant, a youth:

4

     (1) Must have been in foster care in Rhode Island through the department for at least six

5

(6) months on or after their fourteenth birthday. The six (6) months can be non-consecutive periods

6

of foster care placement or participation in the voluntary extension of care pursuant to §14-1-6;

7

     (2) Must be no older than twenty-three (23) years of age prior to June 30 of the application

8

year;

9

     (3) Must have graduated from high school or received a high school equivalency diploma;

10

     (4) Must be admitted to, and must enroll, attend, and make satisfactory progress towards

11

the completion of a degreed program of study at the Community College of Rhode Island, Rhode

12

Island College or the University of Rhode Island on a full-time or part-time basis enrolled in no

13

less than six (6) credits per semester; and

14

     (5) Must complete the FAFSA and any required FAFSA verification, or for persons who

15

are legally unable to complete the FAFSA, must complete a comparable form created by the

16

institution by the applicable deadline for each year in which the student seeks to receive funding

17

under the aforesaid incentive grant;

18

     (b) To be eligible for a Workforce Development Incentive Grant, a youth:

19

     (1) Must have been in foster care in Rhode Island through the department for at least six

20

(6) months on or after their fourteenth birthday. The six (6) months can be non-consecutive periods

21

of foster care placement or participation in the voluntary extension of care pursuant to §14-1-6;

22

     (2) Must be no older than twenty-three (23) years of age prior to June 30 of the application

23

year;

24

     (3) Must have graduated from high school or received a high school equivalency diploma;

25

and

26

     (4) Must be enrolled and attend a workforce development program at the community

27

college of Rhode Island approved by the commissioner of postsecondary education;

28

     (c) Youth shall only be eligible for one of the incentive grants per academic year.

29

     (d) Youth who meet the eligibility requirements in subsection (a) or (b) and who are

30

adopted or placed in guardianship through the department after their sixteenth (16) birthday are

31

eligible to receive the incentive grant.

32

     42-72.8-3. Selection of grant recipients.

33

     (a) There shall be a grant award selection committee which shall consist of a representative

34

from each of the institutions of higher education appointed by their respective presidents, two (2)

 

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1

representatives from the department of children, youth and families appointed by the director, one

2

representative from the department of elementary and secondary education appointed by the

3

commissioner, and one representative from the office of higher education appointed by the

4

commissioner and representatives of other organizations that the director of department of children,

5

youth and families believes can help further the goals of the program. Grant awards shall be made

6

by the department pursuant to its policies, procedures, rules and regulations.

7

     (b) Grant awards shall be made on the basis of scholastic record, aptitude, financial need

8

and general interest in higher education. Recipients must comply with all application deadlines and

9

criteria for admission to the institution to which the recipient is making application and, further,

10

the recipient must have been granted admission by the admissions office of the institution.

11

Cumulative grant awards shall not exceed available appropriations in any fiscal year. The

12

department shall adopt policies, procedures, rules and or regulations, which are reasonably

13

necessary to implement the provisions of this chapter.

14

     42-72.8-4. Appropriation.

15

     The general assembly shall appropriate no less than the sum of $ 50,000 for the fiscal year

16

ending June 30, 2000; $ 100,000 for the fiscal year ending June 30, 2001; $ 150,000 for the fiscal

17

year ending June 30, 2002; and $ 200,000 annually. for the fiscal year ending June 30, 2003 and

18

thereafter. No later than September 1, 2024 and annually thereafter, the department shall provide

19

an annual report to the governor, the speaker of the house of representatives and the president of

20

the senate regarding the funds distributed pursuant to this chapter. The report shall include:

21

(a) the total number of applicants in relation to the total number of grants authorized by

22

the department by school and approved workforce development program;

23

     (b) the average unmet need for each grant recipient by each school and approved workforce

24

development program;

25

     (c) the average award amount by grant program; and

26

     (d) the total amount of funding distributed to each grant program.

27

The department annually shall present the report and an update regarding the Higher Education

28

Opportunity Incentive Grant and Workforce Development Incentive Grant to the youth advisory

29

board and key partners.

30

SECTION 29. All sections in this Article shall take effect upon passage, except Section 18,

31

which shall take effect July 1, 2024.

 

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1

ARTICLE 4

2

RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

3

     SECTION 1. This article shall serve as joint resolution required pursuant to Rhode Island

4

Laws 35-18-1, et seq.

5

     SECTION 2. University of Rhode Island – Utility Infrastructure Upgrade Phase III.

6

     WHEREAS, the University of Rhode Island Board of Trustees and the University of Rhode

7

Island (“University”) are proposing a project which involves the engineering and construction of

8

upgrades and component replacements to five (5) municipal-level Kingston Campus utility

9

systems;

10

     WHEREAS, the University has engaged qualified engineering firms to examine its major

11

infrastructure systems;

12

     WHEREAS, based on the condition and capabilities of these systems, the studies have

13

concluded that replacement of components and reconfiguration is advisable for each of these

14

extensive systems to ensure necessary steam, water, sanitary, and electrical support for the

15

University’s campuses for the next twenty (20) to forty (40) years;

16

     WHEREAS, the University has also developed the required Stormwater Management Plan

17

for the Kingston Campus, which provides guidelines that are being incorporated into new building

18

projects under development and are driving stand-alone stormwater infrastructure projects as well;

19

     WHEREAS, the University has successfully completed many extremely important

20

individual utility infrastructure projects in its continuing progression of work to upgrade and

21

replace infrastructure systems, but now needs additional investments beyond annual capital

22

resources;

23

     WHEREAS, this project is the third phase in a phased implementation plan to upgrade and

24

improve the reliability of infrastructure on the University’s campuses;

25

     WHEREAS, the total project cost associated with the completion of this phase of the

26

project and proposed financing method is nine million one hundred ninety-one thousand two

27

hundred fifty dollars ($9,191,250), including cost of issuance, debt service payments would be

28

supported by revenues derived from the University’s unrestricted general revenues, and total debt

29

service on the bonds is not expected to exceed eight hundred five thousand dollars ($805,000)

30

annually and sixteen million one hundred thousand dollars ($16,100,000) in the aggregate based

31

on an average interest rate of six (6%) percent and a twenty (20) year term; now, therefore be it

32

     RESOLVED, that this General Assembly hereby approves financing in an amount not to

33

exceed nine million one hundred ninety-one thousand two hundred fifty dollars ($9,191,250) for

34

the Utility Infrastructure Upgrade Phase III project at the University; and be it further

 

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1

     RESOLVED, that, this Joint Resolution shall take effect upon passage by this General

2

Assembly.

3

     SECTION 2. This article shall take effect upon passage.

 

LC004143 - Page 130 of 226

1

ARTICLE 5

2

RELATING TO CAPITAL DEVELOPMENT PROGRAM

3

     SECTION 1. Proposition to be submitted to the people. -- At the general election to be

4

held on the Tuesday next after the first Monday in November 2024, there shall be submitted to the

5

people (“People”) of the State of Rhode Island (“State”), for their approval or rejection, the

6

following proposition:

7

     "Shall the action of the general assembly, by an act passed at the January 2024 session,

8

authorizing the issuance of bonds, refunding bonds, and temporary notes of the State of Rhode

9

Island for the capital projects and in the amount with respect to each such project listed below be

10

approved, and the issuance of bonds, refunding bonds, and temporary notes authorized in

11

accordance with the provisions of said act?"

12

Project

13

(1) Higher Education Facilities $135,000,000

14

Approval of this question will allow the State of Rhode Island to issue general obligation

15

bonds, refunding bonds, and/or temporary notes in an amount not to exceed one hundred and thirty-

16

five million dollars ($135,000,000) for capital improvements to higher education facilities, to be

17

allocated as follows:

18

(a) University of Rhode Island Biomedical Sciences Building

19

$80,000,000

20

Provides eighty million dollars ($80,000,000) for the construction of a biomedical sciences

21

building to accelerate the education, research, and workforce development of life sciences for the

22

state.

23

(b) Rhode Island College Cybersecurity Building

24

$55,000,000

25

Provides fifty-five million dollars ($55,000,000) to fund the renovation of Whipple Hall

26

and other improvements to support the Institute for Cybersecurity & Emerging Technologies.

27

(2) State Archives and History Center

28

     $60,000,000

29

     Approval of this question will allow the State of Rhode Island to issue general obligation

30

bonds, refunding bonds, and/or temporary notes in an amount not to exceed sixty million dollars

31

($60,000,000) for the construction of a new Rhode Island State Archives and History Center.

32

(3) Housing and Community Opportunity

33

     $100,000,000

34

     Approval of this question will allow the State of Rhode Island to issue general obligation

 

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1

bonds, refunding bonds, and/or temporary notes in an amount not to exceed one hundred million

2

dollars ($100,000,000) to increase affordable and middle-income housing production and

3

infrastructure, support community revitalization, and promote home ownership.

4

(4) Green Economy Bonds

5

$50,000,000

6

Approval of this question will allow the State of Rhode Island to issue general obligation

7

bonds, refunding bonds, and/or temporary notes in an amount not to exceed fifty million dollars

8

($50,000,000) for environmental and recreational purposes, to be allocated as follows:

9

(a) Port of Davisville Infrastructure at Quonset

10

$20,000,000

11

Provides twenty million dollars ($20,000,000) for infrastructure projects that will support

12

the continued growth and modernization at the Port of Davisville. This investment will finance the

13

Port master plan. The work will include new port access roads, laydown area improvements, and

14

security upgrades to support the new Terminal Five Pier. These projects will upgrade World War

15

II-era infrastructure and position Davisville to accommodate offshore wind project cargo and

16

logistics staging while continuing to support the Port's existing businesses.

17

(b) Climate Resiliency and Public Access Projects

18

$2,000,000

19

Provides two million dollars ($2,000,000) for up to seventy-five percent (75%) matching

20

grants to public and non-profit entities for restoring and/or improving resiliency of vulnerable

21

coastal habitats and restoring rivers and stream floodplains. These funds are expected to leverage

22

significant matching funds to support local programs to improve community resiliency and public

23

safety in the face of increased flooding, major storm events, and environmental degradation.

24

(c) Brownfields Remediation and Economic Development

25

$5,000,000

26

Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

27

to public, private, and/or non-profit entities for brownfield remediation projects.

28

(d) Local Recreation Projects

29

     $5,000,000

30

     Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

31

for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the

32

growing needs for active outdoor recreational facilities.

33

     (e) Municipal Resiliency

34

     $10,000,000

 

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1

Provides ten million dollars ($10,000,000) to provide financial assistance to municipalities

2

for restoring and/or improving resiliency of infrastructure, vulnerable coastal habitats, and restoring

3

rivers and stream floodplains. These funds will be prioritized to leverage significant matching funds

4

to support local programs to improve community resiliency and public safety in the face of

5

increased flooding, major storm events, and environmental degradation.

6

(f) Newport Cliff Walk

7

$8,000,000

8

Provides eight million dollars ($8,000,000) for restoring and improving the resiliency of

9

the historic statewide tourism infrastructure of the public access walkway known as the Newport

10

Cliff Walk located in Newport, Rhode Island.

11

SECTION 2. Ballot labels and applicability of general election laws. -- The Secretary

12

of State shall prepare and deliver to the State Board of Elections ballot labels for each of the projects

13

provided for in Section 1 hereof with the designations "approve" or "reject" provided next to the

14

description of each such project to enable voters to approve or reject each such proposition. The

15

general election laws, so far as consistent herewith, shall apply to this proposition.

16

     SECTION 3. Approval of projects by the people. -- If a majority of the People voting on

17

the proposition in Section 1 hereof shall vote to approve any project stated therein, said project

18

shall be deemed to be approved by the People. The authority to issue bonds, refunding bonds and/or

19

temporary notes of the State shall be limited to the aggregate amount for all such projects as set

20

forth in the proposition, which has been approved by the People.

21

     SECTION 4. Bonds for the capital development program. -- The General Treasurer is

22

hereby authorized and empowered, with the approval of the Governor, and in accordance with the

23

provisions of this Act to issue capital development bonds in serial form, in the name of and on

24

behalf of the State of Rhode Island, in amounts as may be specified by the Governor in an aggregate

25

principal amount not to exceed the total amount for all projects approved by the People and

26

designated as "capital development loan of 2024 bonds." Provided, however, that the aggregate

27

principal amount of such capital development bonds and of any temporary notes outstanding at any

28

one time issued in anticipation thereof pursuant to Section 7 hereof shall not exceed the total amount

29

for all such projects approved by the People. All provisions in this Act relating to "bonds" shall

30

also be deemed to apply to "refunding bonds."

31

     Capital development bonds issued under this Act shall be in denominations of one thousand

32

dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the

33

United States which at the time of payment shall be legal tender for public and private debts. These

34

capital development bonds shall bear such date or dates, mature at specified time or times, but not

 

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1

mature beyond the end of the twentieth (20th) State fiscal year following the fiscal year in which

2

they are issued; bear interest payable semi-annually at a specified rate or different or varying rates:

3

be payable at designated time or times at specified place or places; be subject to express terms of

4

redemption or recall, with or without premium; be in a form, with or without interest coupons

5

attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration

6

and other provisions as may be fixed by the General Treasurer, with the approval by the Governor,

7

upon each issue of such capital development bonds at the time of each issue. Whenever the

8

Governor shall approve the issuance of such capital development bonds, the Governor’s approval

9

shall be certified to the Secretary of State; the bonds shall be signed by the General Treasurer and

10

countersigned by Secretary of State and shall bear the seal of the State. The signature approval of

11

the Governor shall be endorsed on each bond.

12

     SECTION 5. Refunding bonds for the 2024 capital development program. -- The

13

General Treasurer is hereby authorized and empowered, with the approval of the Governor, and in

14

accordance with the provisions of this Act, to issue bonds to refund the 2024 capital development

15

program bonds, in the name of and on behalf of the state, in amounts as may be specified by the

16

Governor in an aggregate principal amount not to exceed the total amount approved by the People,

17

to be designated as "capital development program loan of 2024 refunding bonds" (hereinafter

18

"Refunding Bonds").

19

     The General Treasurer with the approval of the Governor shall fix the terms and form of

20

any Refunding Bonds issued under this Act in the same manner as the capital development bonds

21

issued under this Act, except that the Refunding Bonds may not mature more than twenty (20) years

22

from the date of original issue of the capital development bonds being refunded.

23

     The proceeds of the Refunding Bonds, exclusive of any premium and accrual interest and

24

net the underwriters’ cost, and cost of bond issuance, shall, upon their receipt, be paid by the

25

General Treasurer immediately to the paying agent for the capital development bonds which are to

26

be called and prepaid. The paying agent shall hold the Refunding Bond proceeds in trust until they

27

are applied to prepay the capital development bonds. While such proceeds are held in trust, the

28

proceeds may be invested for the benefit of the State in obligations of the United States of America

29

or the State of Rhode Island.

30

     If the General Treasurer shall deposit with the paying agent for the capital development

31

bonds the proceeds of the Refunding Bonds, or proceeds from other sources, amounts that, when

32

invested in obligations of the United States or the State of Rhode Island, are sufficient to pay all

33

principal, interest, and premium, if any, on the capital development bonds until these bonds are

34

called for prepayment, then such capital development bonds shall not be considered debts of the

 

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1

State of Rhode Island for any purpose starting from the date of deposit of such moneys with the

2

paying agent. The Refunding Bonds shall continue to be a debt of the State until paid.

3

     The term "bond" shall include "note," and the term "refunding bonds" shall include

4

"refunding notes" when used in this Act.

5

     SECTION 6. Proceeds of the capital development program. -- The General Treasurer is

6

directed to deposit the proceeds from the sale of capital development bonds issued under this Act,

7

exclusive of premiums and accrued interest and net the underwriters’ cost, and cost of bond

8

issuance, in one or more of the depositories in which the funds of the State may be lawfully kept in

9

special accounts (hereinafter cumulatively referred to as "such capital development bond fund")

10

appropriately designated for each of the projects set forth in Section 1 hereof which shall have been

11

approved by the People to be used for the purpose of paying the cost of all such projects so

12

approved.

13

     All monies in the capital development bond fund shall be expended for the purposes

14

specified in the proposition provided for in Section 1 hereof under the direction and supervision of

15

the Director of Administration (hereinafter referred to as "Director"). The Director or his or her

16

designee shall be vested with all power and authority necessary or incidental to the purposes of this

17

Act, including but not limited to, the following authority: (a) to acquire land or other real property

18

or any interest, estate or right therein as may be necessary or advantageous to accomplish the

19

purposes of this Act; (b) to direct payment for the preparation of any reports, plans and

20

specifications, and relocation expenses and other costs such as for furnishings, equipment

21

designing, inspecting and engineering, required in connection with the implementation of any

22

projects set forth in Section 1 hereof; (c) to direct payment for the costs of construction,

23

rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other

24

improvements to land in connection with the implementation of any projects set forth in Section 1

25

hereof; and (d) to direct payment for the cost of equipment, supplies, devices, materials and labor

26

for repair, renovation or conversion of systems and structures as necessary for the 2024 capital

27

development program bonds or notes hereunder from the proceeds thereof. No funds shall be

28

expended in excess of the amount of the capital development bond fund designated for each project

29

authorized in Section 1 hereof. With respect to the bonds and temporary notes described in Section

30

1, the proceeds shall be used for the following purposes:

31

     Question 1, relating to bonds in the amount of one hundred and thirty-five million dollars

32

($135,000,000) to provide funding for higher education facilities to be allocated as follows:

33

(b) University of Rhode Island Biomedical Sciences Building

34

$80,000,000

 

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1

Provides eighty million dollars ($80,000,000) for the construction of a biomedical sciences

2

building to accelerate the education, research, and workforce development of life sciences for the

3

state.

4

(b) Rhode Island College Cybersecurity Building

5

$55,000,000

6

Provides fifty-five million dollars ($55,000,000) to fund the renovation of Whipple Hall

7

and other improvements to support the Institute for Cybersecurity & Emerging Technologies.

8

Question 2, relating to bonds in the amount of sixty million dollars ($60,000,000) for the

9

construction of a new Rhode Island State Archives and History Center.

10

Question 3, relating to bonds in the amount of one hundred million dollars ($100,000,000)

11

to increase affordable and middle-income housing production and infrastructure, support

12

community revitalization, and promote home ownership.

13

Question 4, relating to bonds in the amount of fifty million dollars ($50,000,000) for

14

environmental and recreational purposes, to be allocated as follows:

15

(a) Port of Davisville Infrastructure at Quonset

16

$20,000,000

17

Provides twenty million dollars ($20,000,000) for infrastructure projects that will support

18

the continued growth and modernization at the Port of Davisville. This investment will finance the

19

Port master plan. The work will include new port access roads, laydown area improvements, and

20

security upgrades to support the new Terminal Five Pier. These projects will upgrade World War

21

II-era infrastructure and position Davisville to accommodate offshore wind project cargo and

22

logistics staging while continuing to support the Port's existing businesses.

23

(b) Climate Resiliency and Public Access Projects

24

$2,000,000

25

Provides two million dollars ($2,000,000) for up to seventy-five percent (75%) matching

26

grants to public and non-profit entities for restoring and/or improving resiliency of vulnerable

27

coastal habitats and restoring rivers and stream floodplains. These funds are expected to leverage

28

significant matching funds to support local programs to improve community resiliency and public

29

safety in the face of increased flooding, major storm events, and environmental degradation.

30

(c) Brownfields Remediation and Economic Development

31

$5,000,000

32

Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

33

to public, private, and/or non-profit entities for brownfield remediation projects.

34

     (d) Local Recreation Projects

 

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1

     $5,000,000

2

     Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

3

for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the

4

growing needs for active outdoor recreational facilities.

5

     (e) Municipal Resiliency

6

     $10,000,000

7

Provides ten million dollars ($10,000,000) to provide financial assistance to municipalities

8

for restoring and/or improving resiliency of infrastructure, vulnerable coastal habitats, and restoring

9

rivers and stream floodplains. These funds will be prioritized to leverage significant matching funds

10

to support local programs to improve community resiliency and public safety in the face of

11

increased flooding, major storm events, and environmental degradation.

12

(f) Newport Cliff Walk

13

$8,000,000

14

Provides eight million dollars ($8,000,000) for restoring and improving the resiliency of

15

the historic statewide tourism infrastructure of the public access walkway known as the Newport

16

Cliff Walk located in Newport, Rhode Island.

17

     SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority

18

of this Act shall be sold at not less than the principal amount thereof, in such mode and on such

19

terms and conditions as the General Treasurer, with the approval of the Governor, shall deem to be

20

in the best interests of the State.

21

     Any premiums and accrued interest, net of the cost of bond issuance and underwriter’s

22

discount, which may be received on the sale of the capital development bonds or notes shall become

23

part of the Rhode Island Capital Plan Fund of the State, unless directed by federal law or regulation

24

to be used for some other purpose.

25

     In the event that the amount received from the sale of the capital development bonds or

26

notes exceeds the amount necessary for the purposes stated in Section 6 hereof, the surplus may be

27

used to the extent possible to retire the bonds as the same may become due, to redeem them in

28

accordance with the terms thereof or otherwise to purchase them as the General Treasurer, with the

29

approval of the Governor, shall deem to be in the best interests of the state.

30

     Any bonds or notes issued under the provisions of this Act and coupons on any capital

31

development bonds, if properly executed by the manual or electronic signatures of officers of the

32

State in office on the date of execution, shall be valid and binding according to their tenor,

33

notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall

34

for any reason have ceased to hold office.

 

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1

     SECTION 8. Bonds and notes to be tax exempt and general obligations of the State. -

2

- All bonds and notes issued under the authority of this Act shall be exempt from taxation in the

3

State and shall be general obligations of the State, and the full faith and credit of the State is hereby

4

pledged for the due payment of the principal and interest on each of such bonds and notes as the

5

same shall become due.

6

     SECTION 9. Investment of moneys in fund. -- All moneys in the capital development

7

fund not immediately required for payment pursuant to the provisions of this act may be invested

8

by the investment commission, as established by Chapter 10 of Title 35, entitled “State Investment

9

Commission,” pursuant to the provisions of such chapter; provided, however, that the securities in

10

which the capital development fund is invested shall remain a part of the capital development fund

11

until exchanged for other securities; and provided further, that the income from investments of the

12

capital development fund shall become a part of the general fund of the State and shall be applied

13

to the payment of debt service charges of the State, unless directed by federal law or regulation to

14

be used for some other purpose, or to the extent necessary, to rebate to the United States treasury

15

any income from investments (including gains from the disposition of investments) of proceeds of

16

bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on

17

such bonds or notes from federal income taxation.

18

     SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not

19

otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and

20

notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise

21

appropriated.

22

     SECTION 11. Advances from general fund. -- The General Treasurer is authorized, with

23

the approval of the Director and the Governor, in anticipation of the issue of notes or bonds under

24

the authority of this Act, to advance to the capital development bond fund for the purposes specified

25

in Section 6 hereof, any funds of the State not specifically held for any particular purpose; provided,

26

however, that all advances made to the capital development bond fund shall be returned to the

27

general fund from the capital development bond fund forthwith upon the receipt by the capital

28

development fund of proceeds resulting from the issue of notes or bonds to the extent of such

29

advances.

30

     SECTION 12. Federal assistance and private funds. -- In carrying out this act, the

31

Director, or his or her designee, is authorized on behalf of the State, with the approval of the

32

Governor, to apply for and accept any federal assistance which may become available for the

33

purpose of this Act, whether in the form of loan or grant or otherwise, to accept the provision of

34

any federal legislation therefor, to enter into, act and carry out contracts in connection therewith,

 

LC004143 - Page 138 of 226

1

to act as agent for the federal government in connection therewith, or to designate a subordinate so

2

to act. Where federal assistance is made available, the project shall be carried out in accordance

3

with applicable federal law, the rules and regulations thereunder and the contract or contracts

4

providing for federal assistance, notwithstanding any contrary provisions of State law. Subject to

5

the foregoing, any federal funds received for the purposes of this Act shall be deposited in the

6

capital development bond fund and expended as a part thereof. The Director or his or her designee

7

may also utilize any private funds that may be made available for the purposes of this Act.

8

     SECTION 13. Effective Date. -- Sections 1, 2, 3, 11, 12 and this Section 13 of this article

9

shall take effect upon passage. The remaining sections of this article shall take effect when and if

10

the State Board of Elections shall certify to the Secretary of State that a majority of the qualified

11

electors voting on the proposition contained in Section 1 hereof have indicated their approval of all

12

or any projects thereunder.

 

LC004143 - Page 139 of 226

1

ARTICLE 6

2

RELATING TO TAXES AND FEES

3

SECTION 1. Chapter 3-6 of the General Laws entitled “Manufacturing and Wholesale

4

Licenses” is hereby amended by adding thereto the following section:

5

     3-6-18. License fee relief.

6

     If the holder of a manufacturer’s license obtains a rectifier’s license or another type of

7

manufacturer’s license for further operations at the same premises, the department will waive the

8

license fee for the additional license.

9

     SECTION 2. Section 5-20.5-11 of the General Laws in Chapter 5-20.5 entitled “Real Estate

10

Brokers and Salespersons” is hereby amended to read as follows:

11

     5-20.5-11. Fees and license renewals.

12

     (a) The following fees shall be charged by the director:

13

     (1) For each application, a fee of ten dollars ($10.00);

14

     (2) For each examination, a fee, the cost of which is limited to the charge as designated by

15

the

16

appropriate testing service’s contract with the department of business regulation;

17

     (3) For each original broker’s license issued, a fee of eighty-five dollars ($85.00) per

18

annum for the term of the license and for each annual renewal of the license, a fee of eighty-five

19

dollars ($85.00) per annum for the term of renewal. The total fees for the term of initial licensure

20

and of renewal must be paid at the time of application for the license;

21

     (4) For each original salesperson’s license issued, a fee of sixty-five dollars ($65.00) per

22

annum for the term of the license and for each renewal of the license, a fee of sixty-five dollars

23

($65.00) per annum for the term of the license. The total fees for the term of initial licensure and

24

of renewal must be paid at the time of application for the license;

25

     (5) For each change from one broker to another broker by a salesperson, or a broker, a fee

26

of twenty-five dollars ($25.00), to be paid by the salesperson or the broker;

27

     (65) For each broker’s license reinstated after its expiration date, a late fee of one hundred

28

dollars ($100), in addition to the required renewal fee;

29

     (76) For each salesperson’s license reinstated after its expiration date, a late fee of one

30

hundred dollars ($100) in addition to the required renewal fee.

31

     (b) Every licensed real estate broker and salesperson who desires to renew a license for the

32

succeeding year term shall apply for the renewal of the license upon a form furnished by the director

33

and containing information that is required by the director. Any renewal of a license is subject to

34

the same provisions covering issuance, suspension, and revocation of any license originally issued.

 

LC004143 - Page 140 of 226

1

At no time shall any license be renewed without examination if the license has expired beyond a

2

period of

3

one year.

4

     SECTION 3. Sections 11-9-13.4, 11-9-13.13, 11-9-13.15, and 11-9-13.20 of the General

5

Laws in Chapter 11-9 entitled "Children" are hereby amended to read as follows:

6

     11-9-13.4. Definitions.

7

     As used in this chapter:

8

     (1) “Bidi cigarette” means any product that (i) Contains tobacco that is wrapped in

9

temburni or tender leaf, or that is wrapped in any other material identified by rules of the department

10

of health that is similar in appearance or characteristics to the temburni or tender leaf, and (ii) Does

11

not contain a smoke filtering device.

12

     (2) “Court” means any appropriate district court of the state of Rhode Island.

13

     (3) “Dealer” is synonymous with the term “retail tobacco products dealer.”

14

     (4) “Department of behavioral healthcare, developmental disabilities and hospitals” means

15

the state of Rhode Island behavioral healthcare, developmental disabilities and hospitals

16

department, its employees, agents, or assigns.

17

     (5) “Department of taxation” means the state of Rhode Island taxation division, its

18

employees, agents, or assigns.

19

     (6) “Electronic nicotine-delivery system” means an electronic device that may be used to

20

simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device,

21

and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo,

22

electronic little cigars, electronic pipe, or electronic hookah, “heat not burn products,” e-liquids, e-

23

liquid products, or any related device and any cartridge or other component of such device.

24

     (7) “Electronic nicotine-delivery system product” means any combination of electronic

25

nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid

26

container. Electronic nicotine-delivery system products shall not include hemp-derived consumable

27

cannabidiol (CBD) products as defined in § 2-26-3.

28

     (8) “E-liquid” and “e-liquid products” means any liquid or substance placed in or sold for

29

use in an electronic nicotine-delivery system that generally utilizes a heating element that

30

aerosolizes, vaporizes, or combusts a liquid or other substance containing nicotine or nicotine

31

derivative:

32

     (i) Whether the liquid or substance contains nicotine or a nicotine derivative; or

33

     (ii) Whether sold separately or sold in combination with a personal vaporizer, electronic

34

nicotine-delivery system, or an electronic inhaler.

 

LC004143 - Page 141 of 226

1

     (9) “License” is synonymous with the term “retail tobacco products dealer license” or

2

“electronic nicotine-delivery system license” or any license issued under chapter 20 of title 44 or

3

chapter 1 of title 23.

4

     (10) “License holder” is synonymous with the term “retail tobacco products dealer” or

5

“electronic nicotine-delivery system license” or any licenses issued under chapter 20 of title 44 or

6

chapter 1 of title 23.

7

     (11) “Little cigars” means and includes any roll, made wholly or in part of tobacco,

8

irrespective of size or shape, and irrespective of whether the tobacco is flavored, adulterated, or

9

mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco wrapped

10

in leaf tobacco or any substance containing tobacco paper or any other material and where such roll

11

has an integrated filter, except where such wrapper is wholly or in greater part made of tobacco and

12

where such roll has an integrated filter and weighs over four (4) pounds per thousand (1,000).

13

     (12) “Person” means any individual person, firm, fiduciary, partnership, trust, association,

14

or corporation licensed as a retail dealer to sell tobacco products within the state.

15

     (13) “Retail tobacco products dealer” means the holder of a license to sell tobacco products

16

at retail and shall include holders of all other licenses issued under chapter 20 of title 44 or chapter

17

1 of title 23.

18

     (14) “Retail tobacco products dealer license” means a license to sell tobacco products

19

and/or electronic nicotine-delivery system products as defined in section 44-20-1(7) at retail as

20

issued by the department of taxation.

21

     (15) “Spitting tobacco” also means snuff, powdered tobacco, chewing tobacco, dipping

22

tobacco, pouch tobacco, or smokeless tobacco.

23

     (16) “Tobacco product(s)” means any product(s) containing, made of, or derived from

24

tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether

25

inhaled, absorbed, or ingested by any other means, including, but not limited to, a cigarette, a little

26

cigar as defined in § 44-20.2-1, and any and all products as defined in § 44-20-1, electronic nicotine-

27

delivery system products, or any added substance that may be aerosolized, vaporized, or otherwise

28

delivered by such an electronic nicotine-delivery system device, whether or not that substance

29

contains nicotine.

30

     (i) “Tobacco product(s)” does not include drugs, devices, or combination products

31

intended to treat tobacco or nicotine dependence that are authorized by the United States Food and

32

Drug Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act. Nor

33

does it include such authorized drugs, devices, or combination products with such treatment

34

purpose by individuals under age twenty-one (21) if prescribed by a licensed prescriber such as a

 

LC004143 - Page 142 of 226

1

physician, nurse practitioner, or physician assistant.

2

     (17) “Underage individual” or “underage individuals” means any individual under the age

3

of twenty-one (21).

4

     11-9-13.13. Nature and size of penalties.

5

     (a) Any license holder who violates a requirement of § 11-9-13.6(2) or § 11-9-13.7, display

6

of specific signage, shall be subject to a fine in court of not less than thirty-five dollars ($35.00),

7

nor more than five hundred dollars ($500), per civil violation.

8

     (b) The license holder is responsible for all violations of this section that occur at the

9

location for which the license is issued. Any license holder who or that violates the prohibition of

10

§ 11-9-13.8(1) or § 11-9-13.20 shall be subject to civil fines as follows:

11

     (1) A fine of two hundred fifty dollars ($250) for the first violation within any thirty-six-

12

month (36) period;

13

     (2) A fine of five hundred dollars ($500) for the second violation within any thirty-six-

14

month (36) period;

15

     (3) A fine of one thousand dollars ($1,000) and a fourteen-day (14) suspension of the

16

license to sell tobacco products or electronic nicotine-delivery systems for the third violation within

17

any thirty-six-month (36) period;

18

     (4) A fine of one thousand five hundred dollars ($1,500) and a ninety-day (90) suspension

19

of the license to sell tobacco products or electronic nicotine-delivery systems for each violation in

20

excess of three (3).

21

     (c) Any person who or that violates a prohibition of § 11-9-13.8(3), sale of single cigarettes;

22

or § 11-9-13.8(2), regarding factory-wrapped packs as sealed and certified by the manufacturer;

23

shall be subject to a penalty of five hundred dollars ($500) for each violation.

24

     (d) The department of taxation and/or the department of health shall not issue a license to

25

any individual, business, firm, fiduciary, partnership, trust, association, or corporation, the license

26

of which has been revoked or suspended; to any corporation, an officer of which has had his or her

27

license revoked or suspended; or to any individual who is, or has been, an officer of a corporation

28

the license of which has been revoked or suspended so long as such revocations or suspensions are

29

in effect.

30

     (e) The court may suspend the imposition of a license suspension of the license secured

31

from the Rhode Island tax administrator or department of health for a violation of subsections (b)(3)

32

and (b)(4) of this section if the court finds that the license holder has taken measures to prevent the

33

sale of tobacco products, including electronic nicotine-delivery system products, to an underage

34

individual and the license holder can demonstrate to the court that those measures have been taken

 

LC004143 - Page 143 of 226

1

and that employees have received training. No person or individual shall sell tobacco products,

2

including electronic nicotine-delivery system products, at retail without first being trained in the

3

legal sale of tobacco products, including electronic nicotine-delivery system products. Training

4

shall teach employees what constitutes a tobacco product, including an electronic nicotine-delivery

5

system product; legal age of sale; acceptable identification; how to refuse a direct sale to an

6

underage individual or secondary sale to an individual twenty-one (21) years or older; and all

7

applicable laws on tobacco sales and distribution. Dealers shall maintain records indicating that the

8

provisions of this section were reviewed with all employees who conduct, or will conduct, tobacco

9

product sales, including electronic nicotine-delivery system product sales. Each employee who

10

sells or will sell tobacco products, including electronic nicotine-delivery system products, shall sign

11

an acknowledgement form attesting that the provisions of this section were reviewed with him or

12

her. Each form shall be maintained by the retailer for as long as the employee is so employed and

13

for no less than one year after termination of employment. The measures to prevent the sale of

14

tobacco products, including electronic nicotine-delivery system products, to underage individuals

15

shall be defined by the department of behavioral healthcare, developmental disabilities and

16

hospitals in rules and regulations.

17

     11-9-13.15. Penalty for operating without a dealer license.

18

     (a) Any individual or business who or that violates this chapter by selling or conveying a

19

tobacco product or electronic nicotine-delivery system product without a retail tobacco products

20

dealer license shall be cited for that violation and shall be required to appear in court for a hearing

21

on the citation.

22

     (b) Any individual or business cited for a violation under this section of this chapter shall:

23

     (1) Either post a two-thousand-five-hundred-dollar ($2,500) bond with the court within ten

24

(10) days of the citation; or

25

     (2) Sign and accept the citation indicating a promise to appear in court.

26

     (c) An individual or business who or that has accepted the citation may:

27

     (1) Pay a ten-thousand-dollar ($10,000) fine, either by mail or in person, within ten (10)

28

days after receiving the citation; or

29

     (2) If that individual or business has posted a bond, forfeit the bond by not appearing at the

30

scheduled hearing. If the individual or business cited pays the ten-thousand-dollar ($10,000) fine

31

or forfeits the bond, that individual or business is deemed to have admitted the cited violation and

32

to have waived the right to a hearing on the issue of commission on the violation.

33

     (d) The court after a hearing on a citation shall make a determination as to whether a

34

violation has been committed. If it is established that the violation did occur, the court shall impose

 

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1

a ten-thousand-dollar ($10,000) fine, in addition to any court costs or other court fees.

2

     11-9-13.20. Packaging of electronic nicotine-delivery system liquid.

3

     (a) No liquid, whether or not such liquid contains nicotine, that is intended for human

4

consumption and used in an electronic nicotine-delivery system, as defined in § 11-9-13.4, shall be

5

sold unless the liquid is contained in child-resistant packaging.

6

     (b) Any liquid nicotine container that is sold at retail in this state must satisfy the child-

7

resistant effectiveness standards set forth in 16 C.F.R. § 1700.15(b), when tested in accordance

8

with the method described in 16 C.F.R. § 1700.20. All licensees under § 23-1-56 § 44-20-2 shall

9

ensure that any liquid sold by the licensee intended for human consumption and used in an

10

electronic-nicotine delivery system, as defined in § 11-9-13.4, is sold in a liquid nicotine container

11

that meets the requirements described and referenced in this subsection.

12

     (c) For the purposes of this section, “liquid nicotine container” means a bottle or other

13

container of a liquid or other substance where the liquid or substance is sold, marketed, or intended

14

for use in a vapor product. A “liquid nicotine container” does not include a liquid or other substance

15

in a cartridge that is sold, marketed, or intended for use in a vapor product, provided that such

16

cartridge is prefilled and sealed by the manufacturer and not intended to be opened by the consumer.

17

     (d) Any licensee or any person required to be licensed under § 23-1-56 § 44-20-2 who or

18

that fails to comply with this section shall be subject to the penalties provided in § 11-9-13.13.

19

     (e) The licensee is responsible for all violations of this section that occur at the location for

20

which the license is issued.

21

     (f) No licensee or person shall be found in violation of this section if the licensee or person

22

relied in good faith on documentation provided by or attributed to the manufacturer of the

23

packaging of the aforementioned liquid that such packaging meets the requirements of this section.

24

     (g) On or after October 1, 2024, any product found to be in violation of this chapter shall

25

be considered contraband and subject to the confiscation provisions outlined in § 44-20-15.

26

     SECTION 4. Section 16-21.2-5 of the General Laws in Chapter 16-21.2 entitled "The

27

Rhode Island Substance Abuse Prevention Act" is hereby repealed:

28

     16-21.2-5. Funding of substance abuse prevention program.

29

     (a) Money to fund the Rhode Island Substance Abuse Prevention Act shall be appropriated

30

from state general revenues and shall be raised by assessing an additional penalty of thirty dollars

31

($30.00) for all speeding violations as set forth in § 31-43-5.1. The money shall be deposited as

32

general revenues. The department of behavioral healthcare, developmental disabilities and

33

hospitals may utilize up to ten percent (10%) of the sums appropriated for the purpose of

34

administering the substance abuse prevention program.

 

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1

     (b) Grants made under this chapter shall not exceed money available in the substance abuse

2

prevention program.

3

     SECTION 5. Section 16-21.3-3 of the General Laws in Chapter 16-21.3 entitled "The

4

Rhode Island Student Assistance Junior High/Middle School Act" is hereby repealed:

5

     16-21.3-3. Funding of junior high/middle school student assistance program.

6

     (a) Money to fund this program shall be raised by assessing an additional substance abuse

7

prevention assessment of thirty dollars ($30.00) for all moving motor vehicle violations handled

8

by the traffic tribunal including, but not limited to, those violations set forth in § 31-41.1-4, except

9

for speeding. The money shall be deposited in a restricted purpose receipt account separate from

10

all other accounts within the department of behavioral healthcare, developmental disabilities and

11

hospitals. The restricted purpose receipt account shall be known as the junior high/middle school

12

student assistance fund and the traffic tribunal shall transfer money from the junior high/middle

13

school student assistance fund to the department of behavioral healthcare, developmental

14

disabilities and hospitals for the administration of the Rhode Island Student Assistance Junior

15

High/Middle School Act.

16

     (b) The department of behavioral healthcare, developmental disabilities and hospitals may

17

utilize up to ten percent (10%) of the sums collected from the additional penalty for the purpose of

18

administering the program.

19

     SECTION 6. Effective October 1, 2024, Sections 23-1-55, 23-1-56, 23-1-57, and 23-1-58

20

of the General Laws in Chapter 23-1 entitled "Department of Health" are hereby repealed. 

21

     23-1-55. Electronic nicotine delivery system distributor, and dealer licenses required —

22

Definitions.

23

     Definitions. Whenever used in §§ 23-1-56 to 23-1-58, unless the context requires

24

otherwise:

25

     (1) “Dealer” means any person, whether located within or outside of this state, who sells

26

or distributes electronic nicotine-delivery system products to a consumer in this state;

27

     (2) “Distributor” means any person:

28

     (i) Whether located within or outside of this state, other than a dealer, who sells or

29

distributes electronic nicotine-delivery system products within or into this state. Such term shall

30

not include any electronic nicotine-delivery system products manufacturer, export warehouse

31

proprietor, or importer with a valid permit, if such person sells or distributes electronic nicotine-

32

delivery system products in this state only to licensed distributors or to an export warehouse

33

proprietor or another manufacturer with a valid permit;

34

     (ii) Selling electronic nicotine-delivery system products directly to consumers in this state

 

LC004143 - Page 146 of 226

1

by means of at least twenty-five (25) electronic nicotine-delivery system product vending

2

machines;

3

     (iii) Engaged in this state in the business of manufacturing electronic nicotine-delivery

4

system products or any person engaged in the business of selling electronic nicotine-delivery

5

system products to dealers, or to other persons, for the purpose of resale only; provided that seventy-

6

five percent (75%) of all electronic nicotine-delivery system products sold by that person in this

7

state are sold to dealers or other persons for resale and selling electronic nicotine-delivery system

8

products directly to at least forty (40) dealers or other persons for resale; or

9

     (iv) Maintaining one or more regular places of business in this state for that purpose;

10

provided, that seventy-five percent (75%) of the sold electronic nicotine-delivery system products

11

are purchased directly from the manufacturer and selling electronic nicotine-delivery system

12

products directly to at least forty (40) dealers or other persons for resale;

13

     (3) “Electronic nicotine-delivery system” means the products as defined in § 11-9-13.4(6).

14

     23-1-56. License.

15

     (a) Each person engaging in the business of selling electronic nicotine-delivery system

16

products in the state, including any distributor or dealer, shall secure a license annually from the

17

department before engaging in that business or continuing to engage in it. A separate application

18

and license is required for each place of business operated by a distributor or dealer. If the applicant

19

for a license does not have a place of business in this state, the license shall be issued for such

20

applicant’s principal place of business, wherever located. A licensee shall notify the department

21

within thirty (30) days in the event that it changes its principal place of business. A separate license

22

is required for each class of business if the applicant is engaged in more than one of the activities

23

required to be licensed by this section. No person shall maintain or operate, or cause to be operated,

24

a vending machine for electronic nicotine-delivery systems without procuring a dealer’s license for

25

each machine.

26

     (b) The director shall have authority to set a reasonable fee not to exceed twenty-five

27

dollars ($25.00) for the issuance of the license.

28

     (c) Each issued license shall be prominently displayed on the premises, if any, covered by

29

the license.

30

     (d) The director shall create and maintain a website setting forth the identity of all licensed

31

persons under this section, itemized by type of license possessed, and shall update the site no less

32

frequently than six (6) times per year.

33

     (e) A manufacturer or importer may sell or distribute electronic nicotine-delivery systems

34

to a person located or doing business within the state only if such person is a licensed distributor.

 

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1

An importer may obtain electronic nicotine-delivery systems only from a licensed manufacturer. A

2

distributor may sell or distribute electronic nicotine-delivery systems to a person located or doing

3

business within this state only if such person is a licensed distributor or dealer. A distributor may

4

obtain electronic nicotine-delivery systems only from a licensed manufacturer, importer, or

5

distributor. A dealer may obtain electronic nicotine-delivery systems only from a licensed

6

distributor.

7

     (f)(1) No license under this chapter may be granted, maintained, or renewed if the

8

applicant, or any combination of persons owning directly or indirectly any interests in the applicant:

9

     (i) Is delinquent in any tax filings for one month or more; or

10

     (ii) Had a license under this chapter revoked within the past two (2) years.

11

     (2) No person shall apply for a new license, or renewal of a license and no license shall be

12

issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to any

13

license held by that person have been paid.

14

     (3) No license shall be issued relating to a business at any specific location until all prior

15

licenses relating to that location have been officially terminated and all fines, fees, or charges

16

relating to the prior licenses have been paid or otherwise resolved or if the director has found that

17

the person applying for the new license is not acting as an agent for the prior licensee who is subject

18

to any such related fines, fees, or charges that are still due. Evidence of such agency status includes,

19

but is not limited to, a direct familial relationship and/or employment, contractual, or other formal

20

financial or business relationship with the prior licensee.

21

     (4) No person shall apply for a new license pertaining to a specific location in order to

22

evade payment of any fines, fees, or other charges relating to a prior license for that location.

23

     (5) No new license shall be issued for a business at a specific location for which a license

24

has already issued unless there is a bona fide, good-faith change in ownership of the business at

25

that location.

26

     (6) No license or permit shall be issued, renewed or maintained for any person, including

27

the owners of the business being licensed, who has been convicted of violating any criminal law

28

relating to tobacco products and/or electronic nicotine-delivery system products, the payment of

29

taxes, or fraud, or has been ordered to pay civil fines of more than twenty-five thousand dollars

30

($25,000) for violations of any civil law relating to tobacco products and/or electronic nicotine-

31

delivery system products, the payment of taxes, or fraud.

32

     23-1-57. Penalties for unlicensed business.

33

     Any distributor or dealer who sells, offers for sale, or possesses with intent to sell,

34

electronic nicotine-delivery system products without a license as provided in § 23-1-56, shall be

 

LC004143 - Page 148 of 226

1

fined in accordance with the provisions of, and the penalties contained in, § 23-1-58.

2

     23-1-58. Penalty for operating without a dealer license.

3

     (a) Any individual or business who violates this chapter by selling or conveying an

4

electronic nicotine-delivery system product without a retail license shall be cited for that violation

5

and shall be required to appear in district court for a hearing on the citation.

6

     (b) Any individual or business cited for a violation hereunder shall:

7

     (1) Either post a five hundred dollar ($500) bond with the district court within ten (10) days

8

of the citation; or

9

     (2) Sign and accept the citation indicating a promise to appear in court.

10

     (c) An individual or business who or that has accepted the citation may:

11

     (1) Pay the five hundred dollar ($500) fine, either by mail or in person, within ten (10) days

12

after receiving the citation; or

13

     (2) If that individual or business has posted a bond, forfeit the bond by not appearing at the

14

scheduled hearing. If the individual or business cited pays the five hundred dollar ($500) fine or

15

forfeits the bond, that individual or business is deemed to have admitted the cited violation and to

16

have waived the right to a hearing on the issue of commission on the violation.

17

     (d) The court, after a hearing on a citation, shall make a determination as to whether a

18

violation has been committed. If it is established that the violation did occur, the court shall impose

19

a five hundred dollar ($500) fine in addition to any court costs or fees.

20

     SECTION 7. Section 23-3-25 of the General Laws in Chapter 23-3 entitled “Vital Records”

21

is hereby amended to read as follows:

22

     23-3-25. Fees for copies and searches.

23

     (a) The state registrar shall charge fees for searches and copies as follows:

24

     (1) For a search of two (2) consecutive calendar years under one name and for issuance of

25

a certified copy of a certificate of birth, fetal death, death, or marriage, or a certification of birth, or

26

a certification that the record cannot be found, and each duplicate copy of a certificate or

27

certification issued at the same time, the fee is as set forth in § 23-1-54.

28

     (2) For each additional calendar year search, if applied for at the same time or within three

29

(3) months of the original request and if proof of payment for the basic search is submitted, the fee

30

is as set forth in § 23-1-54.

31

     (3) For providing expedited service, the additional handling fee is as set forth in § 23-1-54.

32

     (4) For processing of adoptions, legitimations, or paternity determinations as specified in

33

§§ 23-3-14 and 23-3-15, there shall be a fee as set forth in § 23-1-54.

34

     (5) For making authorized corrections, alterations, and additions, the fee is as set forth in

 

LC004143 - Page 149 of 226

1

§ 23-1-54; provided, no fee shall be collected for making authorized corrections or alterations and

2

additions on records filed before one year of the date on which the event recorded has occurred.

3

     (6) For examination of documentary proof and the filing of a delayed record, there is a fee

4

as set forth in § 23-1-54; and there is an additional fee as set forth in § 23-1-54 for the issuance of

5

a certified copy of a delayed record.

6

     (b) Fees collected under this section by the state registrar shall be deposited in the general

7

fund of this state, according to the procedures established by the state treasurer.

8

     (c) The local registrar shall charge fees for searches and copies of records as follows:

9

     (1) For a search of two (2) consecutive calendar years under one name and for issuance of

10

a certified copy of a certificate of birth, fetal death, death, delayed birth, or marriage, or a

11

certification of birth or a certification that the record cannot be found, the fee is twenty dollars

12

($20.00). For each duplicate copy of a certificate or certification issued at the same time, the fee is

13

fifteen dollars ($15.00).

14

     (2) For each additional calendar year search, if applied for at the same time or within three

15

(3) months of the original request and if proof of payment for the basic search is submitted, the fee

16

is two dollars ($2.00).

17

     (d) Fees collected under this section by the local registrar shall be deposited in the city or

18

town treasury according to the procedures established by the city or town treasurer except that six

19

dollars ($6.00) of the certified copy fees shall be submitted to the state registrar for deposit in the

20

general fund of this state.

21

     (e) To acquire, maintain, and operate an electronic statewide registration system (ESRS),

22

the state registrar shall assess a surcharge of no more than five dollars ($5.00) for a mail-in certified

23

records request, no more than three dollars ($3.00) for each duplicate certified record, and no more

24

than two dollars ($2.00) for a walk-in certified records request or a certified copy of a vital record

25

requested for a local registrar. Notwithstanding the provisions of subsection (d), any such

26

surcharges collected by the local registrar shall be submitted to the state registrar. Any funds

27

collected from the surcharges listed above shall be deposited into the information technology

28

restricted receipt account (ITRR account) established pursuant to § 42-11-2.5(a). as general

29

revenues.

30

     SECTION 8. Effective January 1, 2025, Section 23-27.3-108.2 of the General Laws in

31

Chapter 23-27.3 entitled “State Building Code; Article 1; Administration and Enforcement” is

32

hereby amended to read as follows:

33

     23-27.3-108.2. State building commissioner’s duties.

34

     (a) This code shall be enforced by the state building commissioner as to any structures or

 

LC004143 - Page 150 of 226

1

buildings or parts thereof that are owned or are temporarily or permanently under the jurisdiction

2

of the state or any of its departments, commissions, agencies, or authorities established by an act

3

of the general assembly, and as to any structures or buildings or parts thereof that are built upon

4

any land owned by or under the jurisdiction of the state; provided, however, that for the purposes

5

of this section structures constituting tents and/or membrane frame structures as defined in this state

6

building code and any regulations promulgated hereunder shall be subject to an annual certification

7

process to be established by the state building commissioner in conjunction with the state fire

8

marshal and shall not be subject to recurring permit and fee requirements as otherwise required by

9

this code.

10

     (b) Permit fees for the projects shall be established by the committee. The fees shall be

11

deposited as general revenues.

12

     (c)(1) The local cities and towns shall charge each permit applicant an additional .1 (.001)

13

percent levy of the total construction cost for each permit issued. The levy shall be limited to a

14

maximum of fifty dollars ($50.00) for each of the permits issued for one- and two-family (2)

15

dwellings. This additional levy shall be transmitted monthly to the state building office at the

16

department of business regulation, and shall be used to staff and support the purchase or lease and

17

operation of a web-accessible service and/or system to be utilized by the state and municipalities

18

for uniform, statewide electronic plan review, permit management, and inspection system and other

19

programs described in this chapter. The fee levy shall be deposited as general revenues.

20

     (2) On or before July 1, 2013, the building commissioner shall develop a standard statewide

21

process for electronic plan review, permit management, and inspection. The process shall include,

22

but

23

not be limited to: applications; submission of building plans and plans for developments and plots;

24

plan review; permitting; inspections; inspection scheduling; project tracking; fee calculation and

25

collections;

26

and workflow and report management.

27

     (3) On or before December 1, 2013, the building commissioner, with the assistance of the

28

office of regulatory reform, shall implement the standard statewide process for electronic plan

29

review, permit management, and inspection. In addition, the building commissioner shall develop

30

a technology and implementation plan for a standard web-accessible service or system to be utilized

31

by the state and municipalities for uniform, statewide electronic plan review, permit management,

32

and inspection. The plan shall include, but not be limited to: applications; submission of building

33

plans and plans for developments and plots; plan review; permitting; inspections; inspection

34

scheduling; project tracking; fee calculation and collections; and workflow and report management.

 

LC004143 - Page 151 of 226

1

     (d) The building commissioner shall, upon request by any state contractor described in §

2

37-2-38.1, review, and when all conditions for certification have been met, certify to the state

3

controller that the payment conditions contained in § 37-2-38.1 have been met.

4

     (e) The building commissioner shall coordinate the development and implementation of

5

this section with the state fire marshal to assist with the implementation of § 23-28.2-6. On or before

6

January 1, 2022, the building commissioner shall promulgate rules and regulations to implement

7

the provisions of this section and § 23-27.3-115.6.

8

     (f) The building commissioner shall submit, in coordination with the state fire marshal, a

9

report to the governor and general assembly on or before April 1, 2013, and each April 1 thereafter,

10

providing the status of the web-accessible service and/or system implementation and any

11

recommendations for process or system improvement. In every report submitted on or after April,

12

2024, the building commissioner shall provide the following information:

13

     (1) The identity of every municipality in full compliance with the provisions § 23-27.3-

14

115.6

15

and the rules and regulations promulgated pursuant to the provisions of this section;

16

     (2) The identity of every municipality failing to fully implement and comply with the

17

provisions of § 23-27.3-115.6 and/or the rules and regulations promulgated pursuant to the

18

provisions of this section, and the nature, extent, and basis or reason for the failure or

19

noncompliance; and

20

     (3) Recommendations to achieve compliance by all municipalities with the provisions of §

21

23-27.3-115.6 and the rules and regulations promulgated pursuant to this section.

22

     (g) The building commissioner shall assist with facilitating the goals and objectives set

23

forth in § 28-42-84(a)(9).

24

     SECTION 9. Effective January 1, 2025, Section 23-28.19-1 of the General Laws in Chapter

25

23-28.19 entitled “Tents – Grandstands – Air Supported Structures” is hereby amended to read as

26

follows:

27

     23-28.19-1. Tents for which license required — Application and issuance.

28

     (a) No tent exceeding three hundred fifty square feet (350 sq. ft.) in area shall be erected,

29

maintained, operated, or used in any city or town in this state except under a license from the

30

licensing authorities of the city or town; provided, however, that for tent installations on state

31

property or in jurisdictions otherwise subject to the authority of the state fire marshal, structures

32

constituting tents and/or membrane frame structures as defined in the state building code and any

33

regulations promulgated thereunder, shall be subject to an annual certification process to be

34

established by the state building commissioner in conjunction with the state fire marshal pursuant

 

LC004143 - Page 152 of 226

1

to § 23-27.3-108.2 and shall not be subject to recurring permit and fee requirements as otherwise

2

required by the code. The license shall not be issued for a period exceeding thirty (30) days and

3

shall be revocable for cause. Application shall be made on proper form and, when deemed

4

necessary by the licensing authorities, shall include plans drawn to scale, showing exits, aisles, and

5

seating arrangements and details of the structural support of tent, seats, and platforms, etc. No

6

license shall be issued until the provisions of this chapter have been complied with, and approval

7

has been obtained from the building department, the police department, the fire department, and,

8

when tents are to be used for fifty (50) or more persons, from each and every department having

9

jurisdiction over places of assembly.

10

     (b) For the purposes of this section, the fire marshal shall have no jurisdiction over tents

11

on the property of one-(1) or two-(2) family private dwellings. Nothing contained in this section

12

shall prohibit the fire marshal from requiring a license for a tent smaller than three hundred fifty

13

square feet (350 sq. ft.) where other sections of the fire code deem it necessary, including, but not

14

limited to, use, occupancy, opening, exposure, an increase in occupancy of a commercial

15

establishment, and any other similar factors.

16

     (c) The state fire marshal shall provide training to all assistant deputy fire marshals as

17

defined by § 23-28.2-9 as soon as practicable to ensure the consistent enforcement of the fire safety

18

code pursuant to § 23-28.2-4.

19

     SECTION 10. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor Fuel

20

Tax" is hereby amended to read as follows:

21

     31-36-20. Disposition of proceeds.(a) Notwithstanding any other provision of law to

22

the contrary, all moneys paid into the general treasury under the provisions of this chapter or chapter

23

37 of this title, and title 46 shall be applied to and held in a separate fund and be deposited in any

24

depositories that may be selected by the general treasurer to the credit of the fund, which fund shall

25

be known as the Intermodal Surface Transportation Fund; provided, that in fiscal year 2004 for the

26

months of July through April six and eighty-five hundredth cents ($0.0685) per gallon of the tax

27

imposed and accruing for the liability under the provisions of § 31-36-7, less refunds and credits,

28

shall be transferred to the Rhode Island public transit authority as provided under § 39-18-21. For

29

the months of May and June in fiscal year 2004, the allocation shall be five and five hundredth

30

cents ($0.0505). Thereafter, until fiscal year 2006, the allocation shall be six and twenty-five

31

hundredth cents ($0.0625). For fiscal years 2006 through FY 2008, the allocation shall be seven

32

and twenty-five hundredth cents ($0.0725); provided, that expenditures shall include the costs of

33

a market survey of non-transit users and a management study of the agency to include the

34

feasibility of moving the Authority into the Department of Transportation, both to be conducted

 

LC004143 - Page 153 of 226

1

under the auspices of the state budget officer. The state budget officer shall hire necessary

2

consultants to perform the studies, and shall direct payment by the Authority. Both studies shall

3

be transmitted by the Budget Officer to the 2006 session of the General Assembly, with

4

comments from the Authority. For fiscal year 2009, the allocation shall be seven and seventy-

5

five hundredth cents ($0.0775), of which one-half cent ($0.005) shall be derived from the one

6

cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-11. For fiscal years

7

2010 and thereafter, the allocation shall be nine and seventy-five hundredth cents ($0.0975), of

8

which of one-half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental

9

protection fee pursuant to § 46-12.9-11. One cent ($0.01) per gallon shall be transferred to the

10

Elderly/Disabled Transportation Program of the department of human services, For fiscal years

11

2025 and thereafter, twenty-one percent (21%) of one cent ($0.0021) per gallon shall be transferred

12

to the Elderly/Disabled Transportation Program of the department of human services, and seventy-

13

nine percent (79%) of one cent ($0.0079) shall be directly transferred to the Rhode Island public

14

transit authority for the elderly/disabled transportation program. and tThe remaining cents per

15

gallon shall be available for general revenue as determined by the following schedule:

16

     (i) For the fiscal year 2000, three and one-fourth cents ($0.0325) shall be available for

17

general revenue.

18

     (ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for

19

general revenue.

20

     (iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general

21

revenue.

22

     (iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for

23

general revenue.

24

     (v) For the months of July through April in fiscal year 2004, one and four-tenths cents

25

($0.014) shall be available for general revenue. For the months of May through June in fiscal year

26

2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter,

27

until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year 2006

28

through fiscal year 2009 one cent ($0.01) shall be available for general revenue.

29

(2) All deposits and transfers of funds made by the tax administrator under this section,

30

including those to the Rhode Island public transit authority, the department of human services, the

31

Rhode Island turnpike and bridge authority, and the general fund, shall be made within twenty-four

32

(24) hours of receipt or previous deposit of the funds in question.

33

(3) Commencing in fiscal year 2004, the Director of the Rhode Island Department of

34

Transportation is authorized to remit, on a monthly or less frequent basis as shall be determined by

 

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1

the Director of the Rhode Island Department of Transportation, or his or her designee, or at the

2

election of the Director of the Rhode Island Department of Transportation, with the approval of the

3

Director of the Department of Administration, to an indenture trustee, administrator, or other third

4

party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax imposed, in

5

order to satisfy debt service payments on aggregate bonds issued pursuant to a Joint Resolution and

6

Enactment Approving the Financing of Various Department of Transportation Projects adopted

7

during the 2003 session of the General Assembly, and approved by the Governor.

8

(4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be transferred

9

to the Rhode Island Turnpike and Bridge Authority to be used for maintenance, operations, capital

10

expenditures and debt service on any of its projects as defined in chapter 12 of title 24 in lieu of a

11

toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge authority is authorized to

12

remit to an indenture trustee, administrator, or other third-party fiduciary any or all of the foregoing

13

transfers in order to satisfy and/or secure its revenue bonds and notes and/or debt service payments

14

thereon, including, but not limited to, the bonds and notes issued pursuant to the Joint Resolution

15

set forth in Section 3 of Article 6 of Chapter 23 of the Public Laws of 2010. Notwithstanding any

16

other provision of said Joint Resolution, the Rhode Island turnpike and bridge authority is expressly

17

authorized to issue bonds and notes previously authorized under said Joint Resolution for the

18

purpose of financing all expenses incurred by it for the formerly authorized tolling of the Sakonnet

19

River Bridge and the termination thereof.

20

(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund

21

shall be dedicated to the department of transportation, subject to annual appropriation by the general

22

assembly. The director of transportation shall submit to the general assembly, budget office and

23

office of the governor annually an accounting of all amounts deposited in and credited to the fund

24

together with a budget for proposed expenditures for the succeeding fiscal year in compliance with

25

§§ 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized

26

and directed to draw his or her orders upon the general treasurer for the payments of any sum or

27

portion of the sum that may be required from time to time upon receipt of properly authenticated

28

vouchers.

29

(c) At any time the amount of the fund is insufficient to fund the expenditures of the

30

department of transportation, not to exceed the amount authorized by the general assembly, the

31

general treasurer is authorized, with the approval of the governor and the director of administration,

32

in anticipation of the receipts of monies enumerated in this section to advance sums to the fund, for

33

the purposes specified in this section, any funds of the state not specifically held for any particular

34

purpose. However, all the advances made to the fund shall be returned to the general fund

 

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1

immediately upon the receipt by the fund of proceeds resulting from the receipt of monies to the

2

extent of the advances.

3

     SECTION 11. Section 44-1-34 of the General Laws in Chapter 44-1 entitled “State Tax

4

Officials” is hereby amended to read as follows:

5

     44-1-34. Tax administrator to prepare list of delinquent taxpayers — Notice — Public

6

inspection.

7

     (a) Notwithstanding any other provision of law, the tax administrator may, on a quarterly

8

basis,

9

     (1) Prepare a list of the one hundred (100) delinquent taxpayers under chapter 44-30 who

10

owe the largest amount at least $50,000 of state tax and whose taxes have been unpaid for a period

11

in excess of ninety (90) days following the date their tax was due.

12

     (2) Prepare a list of the one hundred (100) delinquent taxpayers collectively under chapters

13

44-11, 44-12, 44-13, 44-14, 44-15, 44-17, 44-18, and 44-20, who owe the largest amount at least

14

$50,000 of state tax and whose taxes have been unpaid for a period in excess of ninety (90) days

15

following the date their tax was due.

16

     (3) Each list may contain the name and address of each delinquent taxpayer, the type of tax

17

levied, and the amount of the delinquency, including interest and penalty, as of the end of the

18

quarter. No taxpayer shall be included on such list if the tax assessment in question is the subject

19

of an appeal.

20

     (b) The tax administrator shall not list any delinquent taxpayer until such time as he or she

21

gives the delinquent taxpayer thirty (30) days’ notice of intent to publish the taxpayer’s

22

delinquency. Said notice shall be sent to the taxpayer’s last known address by regular and certified

23

mail. If during said thirty (30) day period the taxpayer makes satisfactory arrangement for payment

24

of the delinquent tax, the name of such taxpayer shall not be published as long as the taxpayer does

25

not default on any payment agreement entered into with the division of taxation.

26

     (c) Any such list prepared by the tax division shall be available to the public for inspection

27

by any person and may be published by the tax administrator on the tax division website.

28

     SECTION 12. Effective January 1, 2025, Sections 44-11-2, 44-11-2.3, 44-11-4.1, and 44-

29

11-11 of the General Laws in Chapter 44-11 entitled "Business Corporation Tax" is hereby

30

amended to read as follows:

31

     44-11-2. Imposition of Tax.

32

     (a) Each corporation shall annually pay to the state a tax equal to nine percent (9%) of net

33

income, as defined in § 44-11-11, qualified in § 44-11-12, and apportioned to this state as provided

34

in §§ 44-11-13 — 44-11-15, for the taxable year. For tax years beginning on or after January 1,

 

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1

2015, each corporation shall annually pay to the state a tax equal to seven percent (7.0%) of net

2

income, as defined in § 44-11-13 — 44-11-15, for the taxable year.

3

     (b) A corporation shall pay the amount of any tax as computed in accordance with

4

subsection (a) after deducting from "net income," as used in this section, fifty percent (50%) of the

5

excess of capital gains over capital losses realized during the taxable year, if for the taxable year:

6

     (1) The corporation is engaged in buying, selling, dealing in, or holding securities on its

7

own behalf and not as a broker, underwriter, or distributor;

8

     (2) Its gross receipts derived from these activities during the taxable year amounted to at

9

least ninety percent (90%) of its total gross receipts derived from all of its activities during the year.

10

"Gross receipts" means all receipts, whether in the form of money, credits, or other valuable

11

consideration, received during the taxable year in connection with the conduct of the taxpayer's

12

activities.

13

     (c) A corporation shall not pay the amount of the tax computed on the basis of its net

14

income under subsection (a), but shall annually pay to the state a tax equal to ten cents ($.10) for

15

each one hundred dollars ($100) of gross income for the taxable year or a tax of one hundred dollars

16

($100), whichever tax shall be the greater, if for the taxable year the corporation is either a "personal

17

holding company" registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-

18

1 et seq., "regulated investment company," or a "real estate investment trust" as defined in the

19

federal income tax law applicable to the taxable year. "Gross income" means gross income as

20

defined in the federal income tax law applicable to the taxable year, plus:

21

     (1) Any interest not included in the federal gross income; minus

22

     (2) Interest on obligations of the United States or its possessions, and other interest exempt

23

from taxation by this state; and minus

24

     (3) Fifty percent (50%) of the excess of capital gains over capital losses realized during the

25

taxable year.

26

     (d) (1) A small business corporation having an election in effect under subchapter S, 26

27

U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except

28

that the corporation shall be subject to the provisions of subsection (a), to the extent of the income

29

that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after

30

January 1, 2015, a small business corporation having an election in effect under subchapter S, 26

31

U.S.C. § 1361 et seq., shall be subject to the minimum tax under § 44-11-2(e).

32

     (2) The shareholders of the corporation who are residents of Rhode Island shall include in

33

their income their proportionate share of the corporation's federal taxable income.

34

     (3) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]

 

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1

     (4) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]

2

     (e) Minimum tax.  The tax imposed upon any corporation under this section, including a

3

small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et

4

seq., shall not be less than four hundred fifty dollars ($450). For tax years beginning on or after

5

January 1, 2017, the tax imposed shall not be less than four hundred dollars ($400). For tax years

6

beginning on or after January 1, 2025, the tax imposed shall not be less than three hundred fifty

7

dollars ($350.00).

8

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

9

     (a) Definitions. As used in this section:

10

     (1) “Election” means the annual election to be made by the pass-through entity by filing

11

the prescribed tax form and remitting the appropriate tax.

12

     (2) “Net income” means the net ordinary income, net rental real estate income, other net

13

rental income, guaranteed payments, and other business income less specially allocated

14

depreciation and deductions allowed pursuant to § 179 of the United States Revenue Code (26

15

U.S.C. § 179), all of which would be reported on federal tax form schedules C and E. Net income

16

for purposes of this section does not include specially allocated investment income or any other

17

types of deductions.

18

     (3) “Owner” means an individual who is a shareholder of an S Corporation; a partner in a

19

general partnership, a limited partnership, or a limited liability partnership; a member of a limited

20

liability company, a beneficiary of a trust; or a sole proprietor.

21

     (4) “Pass-through entity” means a corporation that for the applicable tax year is treated as

22

an S Corporation under I.R.C. 1362(a) (26 U.S.C. § 1362(a)), or a general partnership, limited

23

partnership, limited liability partnership, trust, limited liability company or unincorporated sole

24

proprietorship that for the applicable tax year is not taxed as a corporation for federal tax purposes

25

under the state’s regulations.

26

     (5) “State tax credit” means the amount of tax paid by the pass-through entity at the entity

27

level that is passed through to an owner on a pro rata basis. For tax years beginning on or after

28

January 1, 2025, “State tax credit” means ninety percent (90%) of the amount of tax paid by the

29

pass-through entity at the entity level that is passed through to an owner on a pro rata basis.

30

     (b) Elections.

31

     (1) For tax years beginning on or after January 1, 2019, a pass-through entity may elect to

32

pay the state tax at the entity level at the rate of five and ninety-nine hundredths percent (5.99%).

33

     (2) If a pass-through entity elects to pay an entity tax under this subsection, the entity shall

34

not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident

 

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1

owners. In that instance, the entity shall not have to comply with the provisions of § 44-11-2.2

2

regarding withholding on non-resident owners.

3

     (c) Reporting.

4

     (1) The pass-through entity shall report the pro rata share of the state income taxes paid by

5

the entity which sums will be allowed as a state tax credit for an owner on his or her personal

6

income tax return.

7

     (2) The pass-through entity shall also report the pro rata share of the state income taxes

8

paid by the entity as an income (addition) modification to be reported by an owner on his or her

9

personal income tax returns.

10

     (d) State tax credit shall be the amount of tax paid by the pass-through entity, at the entity

11

level, which is passed through to the owners, on a pro rata basis. For tax years beginning on or

12

after January 1, 2025, state tax credit shall be ninety percent (90%) of the amount of tax paid by

13

the pass-through entity, at the entity level, which is passed through to the owners, on a pro rata

14

basis.

15

     (e) A similar type of tax imposed by another state on the owners’ income paid at the state

16

entity level shall be deemed to be allowed as a credit for taxes paid to another jurisdiction in

17

accordance with the provisions of § 44-30-18.

18

     (f) “Combined reporting” as set forth in § 44-11-4.1 shall not apply to reporting under this

19

section.

20

     44-11-4.1. Combined reporting.

21

     (a) For tax years beginning on or after January 1, 2015, each C corporation which is part

22

of an unitary business with one or more other corporations must file a return, in a manner prescribed

23

by the tax administrator, for the combined group containing the combined income, determined

24

under this section, of the combined group.

25

     (b) An affiliated group of C corporations, as defined in section 1504 of the Internal Revenue

26

Code, may elect to be treated as a combined group with respect to the combined reporting

27

requirement imposed by § 44-11-4.1(a) for the taxable year in lieu of an unitary business group.

28

The election shall be upon the condition that all C corporations which at any time during the taxable

29

year have been members of the affiliated group consent to be included in such group. The filing of

30

a consolidated return for the combined group shall be considered as such consent. Such election

31

may not be revoked in less than five (5) years unless approved by the tax administrator.

32

     (c) The use of a combined report does not disregard the separate identities of the taxpayer

33

members of the combined group. Each taxpayer member is responsible for tax based on its taxable

34

income or loss apportioned to this state.

 

LC004143 - Page 159 of 226

1

     (d) Members of a combined group shall exclude as a member and disregard the income and

2

apportionment factors of any corporation not incorporated in the United States (a “non US

3

corporation”) if the sales factors outside the United States is eighty percent (80%) or more. If a non

4

US corporation is includible as a member in the combined group, to the extent that such non US

5

corporation’s income is subject to the provisions of a federal income tax treaty, such income is not

6

includible in the combined group net income. Such member shall also not include in the combined

7

report any expenses or apportionment factors attributable to income that is subject to the provisions

8

of a federal income tax treaty. For purposes of this chapter, “federal income tax treaty” means a

9

comprehensive income tax treaty between the United States and a foreign jurisdiction, other than a

10

foreign jurisdiction which is defined as a tax haven; provided, however, that if the tax administrator

11

determines that a combined group member non US corporation is organized in a tax haven that has

12

a federal income treaty with the United States, its income subject to a federal income tax treaty,

13

and any expenses or apportionment factors attributable to such income, shall not be included in the

14

combined group net income or combined report if: (i) the transactions conducted between such non

15

US corporation and other members of the combined group are done on an arm’s length basis and

16

not with the principal purpose to avoid the payment of taxes due under this chapter; or (ii) the

17

member establishes that the inclusion of such net income in combined group net income is

18

unreasonable.

19

     (e) Net operating losses. A tracing protocol shall apply to net operating losses created

20

before January 1, 2015. Such net operating losses shall be allowed to offset only the income of the

21

corporation that created the net operating loss; the net operating loss cannot be shared with other

22

members of the combined group. No deduction is allowable for a net operating loss sustained

23

during any taxable year in which a taxpayer was not subject to Rhode Island business corporation

24

tax. For net operating losses created in tax years beginning on or after January 1, 2015 such loss

25

allowed shall be the same as the net operating loss deduction allowed under section 172 of the

26

internal revenue code for the combined group, except that:

27

     (1) Any net operating loss included in determining the deduction shall be adjusted to reflect

28

the inclusions and exclusions from entire net income required by § 44-11-11 (a) and § 44-11-11.1;

29

     (2) The deduction shall not include any net operating loss sustained during any taxable year

30

in which the member was not subject to the tax imposed by this chapter; and

31

     (3) Limitation on 26 U.S.C. § 172 deduction.

32

     (i) The deduction shall not exceed the deduction for the taxable year allowable under

33

section 172 of the internal revenue code; provided, that the deduction for a taxable year may not be

34

carried back to any other taxable year for Rhode Island purposes but shall only be allowable on a

 

LC004143 - Page 160 of 226

1

carry forward basis for the five (5) succeeding taxable years.; and

2

     (ii) For any taxable year beginning on or after January 1, 2025, the deduction shall not

3

exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided, that the

4

deduction for a taxable year may not be carried back to any other taxable year for Rhode Island

5

purposes but shall only be allowable on a carry forward basis for the twenty (20) succeeding taxable

6

years.

7

     (f) Tax credits and tax rate reduction.

8

     (1) A tracing protocol shall apply to Rhode Island tax credits earned before tax years

9

beginning on or before January 1, 2015. Such Rhode Island tax credits shall be allowed to offset

10

only the tax liability of the corporation that earned the credits; the Rhode Island tax credits cannot

11

be shared with other members of the combined group. Rhode Island tax credits earned in tax years

12

beginning on or after January 1, 2015, may be applied to other members of the group.

13

     (2) The tax rate reductions authorized under chapter 64.5 of title 42 (Jobs Development

14

Act) and chapter 64.14 of title 42 (I-195 Redevelopment Act of 2011) shall be allowed against the

15

net income of the entire combined group.

16

     (g) The tax administrator shall prescribe and amend, from time to time, rules and

17

regulations as he or she may deem necessary in order that the tax liability of any group of

18

corporations filing as a combined group and each corporation in the combined group, liable to

19

taxation under this chapter, may be determined, computed, assessed, collected, and adjusted in a

20

manner as to clearly reflect the combined income of the combined group and the individual income

21

of each member of the combined group. Such rules and regulations, shall include but are not be

22

limited to, issues such as the inclusion or exclusion of a corporation in the combined group, the

23

characterization and sourcing of each member’s income, and whether certain common activities

24

constitute the conduct of a unitary business.

25

     (h) The tax administrator shall on or before March 15, 2018, based upon the actual tax

26

filings of companies under this act for a two year period, submit a report to the chairperson of the

27

house finance committee and the senate finance committee and the house fiscal advisor and the

28

senate fiscal advisor analyzing the policy and fiscal ramifications of the changes enacted to business

29

corporations tax statutes, as enacted in budget article 12 of the Fiscal Year 2015 appropriations act.

30

The report shall include but not be limited to the impact upon categories of business, size of

31

business and similar information as contained in § 44-11-45 [repealed], which required the original

32

report.

33

     44-11-11. “Net income” defined.

34

     (a)(1) “Net income” means, for any taxable year and for any corporate taxpayer, the taxable

 

LC004143 - Page 161 of 226

1

income of the taxpayer for that taxable year under the laws of the United States, plus:

2

     (i) Any interest not included in the taxable income;

3

     (ii) Any specific exemptions;

4

     (iii) The tax imposed by this chapter;

5

     (iv) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck

6

Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus

7

Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or

8

any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount

9

of the loan forgiven exceeds $250,000; and minus:

10

     (v) Interest on obligations of the United States or its possessions, and other interest exempt

11

from taxation by this state; and

12

     (vi) The federal net operating loss deduction. ; and

13

     (vii) For any taxable year beginning on or after January 1, 2025, in the case of a taxpayer

14

that is licensed in accordance with chapters 28.6 and/or 28.11 of title 21, the amount equal to any

15

expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed under

16

26 U.S.C. § 280E.

17

     (2) All binding federal elections made by or on behalf of the taxpayer applicable either

18

directly or indirectly to the determination of taxable income shall be binding on the taxpayer except

19

where this chapter or its attendant regulations specifically modify or provide otherwise. Rhode

20

Island taxable income shall not include the “gross-up of dividends” required by the federal Internal

21

Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the

22

foreign tax credit.

23

     (b) A net operating loss deduction shall be allowed, which shall be the same as the net

24

operating loss deduction allowed under 26 U.S.C. § 172, except that:

25

     (1) Any net operating loss included in determining the deduction shall be adjusted to reflect

26

the inclusions and exclusions from entire net income required by subsection (a) of this section and

27

§ 44-11-11.1;

28

     (2) The deduction shall not include any net operating loss sustained during any taxable year

29

in which the taxpayer was not subject to the tax imposed by this chapter; and

30

     (3) Limitation on 26 U.S.C. § 172 deduction.

31

     (i) The deduction shall not exceed the deduction for the taxable year allowable under 26

32

U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other

33

taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the

34

five (5) succeeding taxable years. ; and

 

LC004143 - Page 162 of 226

1

     (ii) For any taxable year beginning on or after January 1, 2025, the deduction shall not

2

exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided, that the

3

deduction for a taxable year may not be carried back to any other taxable year for Rhode Island

4

purposes but shall only be allowable on a carry forward basis for the twenty (20) succeeding taxable

5

years.

6

     (c) “Domestic international sales corporations” (referred to as DISCs), for the purposes of

7

this chapter, will be treated as they are under federal income tax law and shall not pay the amount

8

of the tax computed under § 44-11-2(a). Any income to shareholders of DISCs is to be treated in

9

the same manner as it is treated under federal income tax law as it exists on December 31, 1984.

10

     (d) A corporation that qualifies as a “foreign sales corporation” (FSC) under the provisions

11

of subchapter N, 26 U.S.C. § 861 et seq., and that has in effect for the entire taxable year a valid

12

election under federal law to be treated as a FSC, shall not pay the amount of the tax computed

13

under § 44-11-2(a). Any income to shareholders of FSCs is to be treated in the same manner as it

14

is treated under federal income tax law as it exists on January 1, 1985.

15

     (e) For purposes of a corporation’s state tax liability, any deduction to income allowable

16

under 26 U.S.C. § 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer

17

for at least seven years. The division of taxation shall promulgate, in its discretion, rules and

18

regulations relative to the accelerated application of deductions under 26 U.S.C. § 1400Z-2(c).

19

     SECTION 13. Effective January 1, 2025, Section 44-18-30.1 of the General Laws in

20

Chapter 44-18 entitled "Sales and Use Taxes – Liability and Computation" is hereby amended to

21

read as follows:

22

     44-18-30.1. Application for certificate of exemption - Fees.

23

A fee of twenty-five dollars ($25.00) shall be paid by all All organizations applying for seeking a

24

certificate of exemption from the Rhode Island sales and use tax under § 44-18-30(5)(i) shall apply

25

for a certificate of exemption on forms prescribed by the tax administrator. The certificate of

26

exemption shall be valid for four (4) years from the date of issue. All fees collected under this

27

section shall be allocated to the tax administrator for enforcement and collection of all taxes. All

28

certificates issued prior to the effective date of this section shall expire four (4) years from the

29

effective date of this section.

30

     SECTION 14. Effective September 1, 2024, Sections 44-20-12 and 44-20-13 of the

31

General Laws in Chapter 44-20 entitled “Cigarette and Other Tobacco Products Tax” are hereby

32

amended to read as follows:

33

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

34

     A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax

 

LC004143 - Page 163 of 226

1

to be evidenced by stamps, which may be affixed only by licensed distributors to the packages

2

containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this

3

chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under

4

this chapter. The tax is at the rate of two hundred twelve and one-half (212.5) two hundred twenty-

5

five (225) mills for each cigarette.

6

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

7

     A tax is imposed at the rate of two hundred twelve and one-half (212.5) two hundred

8

twenty-five (225) mills for each cigarette upon the storage or use within this state of any cigarettes

9

not stamped in accordance with the provisions of this chapter in the possession of any consumer

10

within this state.

11

     SECTION 15. Effective September 1, 2024, Chapter 44-20 of the General Laws entitled

12

"Cigarette and Other Tobacco Products Tax" is hereby amended by adding thereto the following

13

section:

14

     44-20-12.7. Floor stock tax on cigarettes and stamps.

15

     (a) Each person engaging in the business of selling cigarettes at retail in this state shall pay

16

a tax or excise to the state for the privilege of engaging in that business during any part of the

17

calendar year 2024. In calendar year 2024, the tax shall be measured by the number of cigarettes

18

held by the person in this state at 12:01 a.m. on September 1, 2024, and is computed at the rate of

19

twelve and one half (12.5) mills for each cigarette on September 1, 2024.

20

     (b) Each distributor licensed to do business in this state pursuant to this chapter shall pay a

21

tax or excise to the state for the privilege of engaging in that business during any part of the calendar

22

year 2024. The tax is measured by the number of stamps, whether affixed or to be affixed to

23

packages of cigarettes, as required by § 44-20-28. In calendar year 2024 the tax is measured by the

24

number of stamps, whether affixed or to be affixed, held by the distributor at 12:01 a.m. on

25

September 1, 2024, and is computed at the rate of twelve and one half (12.5) mills per cigarette in

26

the package to which the stamps are affixed or to be affixed.

27

     (c) Each person subject to the payment of the tax imposed by this section shall, on or before

28

September 16, 2024, file a return, under oath or certified under the penalties of perjury, with the

29

tax administrator on forms furnished by him or her, showing the amount of cigarettes and the

30

number of stamps in that person's possession in this state at 12:01 a.m. on September 1, 2024, as

31

described in this section above, and the amount of tax due, and shall at the time of filing the return

32

pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure

33

to make a return containing the information required by the tax administrator.

34

     (d) The tax administrator may prescribe rules and regulations, not inconsistent with law,

 

LC004143 - Page 164 of 226

1

regarding the assessment and collection of the tax imposed by this section.

2

     SECTION 16. Effective October 1, 2024, the title of Chapter 44-20 of the General Laws

3

entitled "Cigarette and Other Tobacco Products Tax" is hereby amended to read as follows:

4

CHAPTER 44-20

5

Cigarette and Other Tobacco Products Tax

6

CHAPTER 44-20

7

Cigarette, Other Tobacco Products, and Electronic Nicotine-Delivery System Products

8

     SECTION 17. Effective October 1, 2024, Sections 44-20-1, 44-20-2, 44-20-3, 44-20-4, 44-

9

20-4.1, 44-20-5, 44-20-8.2, 44-20-13.2, 44-20-15, 44-20-33, 44-20-35, 44-20-40, 44-20-40.1, 44-

10

20-43, 44-20-45, 44-20-47, and 44-20-51.1 of the General Laws in Chapter 44-20 entitled

11

"Cigarette and Other Tobacco Products Tax" are hereby amended to read as follows: 

12

     44-20-1. Definitions.

13

     Whenever used in this chapter, unless the context requires otherwise:

14

     (1) “Administrator” means the tax administrator;

15

     (2) “Cigarettes” means and includes any cigarettes suitable for smoking in cigarette form,

16

and each sheet of cigarette rolling paper, including but not limited to, paper made into a hollow

17

cylinder or cone, made with paper or any other material, with or without a filter suitable for use in

18

making cigarettes;

19

     (3) “Dealer” means any person whether located within or outside of this state, who sells or

20

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

21

products to a consumer in this state;

22

     (4) “Distributor” means any person:

23

     (A) Whether located within or outside of this state, other than a dealer, who sells or

24

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

25

products within or into this state. Such term shall not include any cigarette or other tobacco product

26

manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C. § 5712,

27

if such person sells or distributes cigarettes and/or other tobacco products and/or electronic

28

nicotine-delivery system products in this state only to licensed distributors, or to an export

29

warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;

30

     (B) Selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery

31

system products directly to consumers in this state by means of at least twenty-five (25) vending

32

machines;

33

     (C) Engaged in this state in the business of manufacturing cigarettes and/or other tobacco

34

products and/or electronic nicotine-delivery system products or any person engaged in the business

 

LC004143 - Page 165 of 226

1

of selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

2

products to dealers, or to other persons, for the purpose of resale only; provided, that seventy-five

3

percent (75%) of all cigarettes and/or other tobacco products and/or electronic nicotine-delivery

4

system products sold by that person in this state are sold to dealers or other persons for resale and

5

selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products

6

directly to at least forty (40) dealers or other persons for resale; or

7

     (D) Maintaining one or more regular places of business in this state for that purpose;

8

provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products

9

and/or electronic nicotine-delivery system products are purchased directly from the manufacturer

10

and selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

11

products directly to at least forty (40) dealers or other persons for resale;

12

     (5) “E-liquid” and “e-liquid products” mean any liquid or substance placed in or sold for

13

use in an electronic nicotine-delivery system which generally utilizes a heating element that

14

aerosolizes, vaporizes or combusts a liquid or other substance containing nicotine or nicotine

15

derivative:

16

     (a) whether the liquid or substance contains nicotine or a nicotine derivative; or,

17

     (b) whether sold separately or sold in combination with a personal vaporizer, electronic

18

nicotine-delivery system, or an electronic inhaler.

19

     (6) "Electronic nicotine-delivery system" means an electronic device that may be used to

20

simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device,

21

and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo,

22

electronic little cigars, electronic pipe, electronic hookah, “heat not burn products,” e-liquids, e-

23

liquid products, or any related device and any cartridge or other component of such device.

24

     (7) "Electronic nicotine-delivery system products" means any combination of electronic

25

nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid

26

container. Electronic nicotine-delivery system products shall include hemp-derived consumable

27

CBD products as defined in § 2-26-3.

28

     (58) “Importer” means any person who imports into the United States, either directly or

29

indirectly, a finished cigarette or other tobacco product and/or electronic nicotine-delivery system

30

product for sale or distribution;

31

     (69) “Licensed,” when used with reference to a manufacturer, importer, distributor or

32

dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for

33

the type of business being engaged in. When the term “licensed” is used before a list of entities,

34

such as “licensed manufacturer, importer, wholesale dealer, or retailer dealer,” such term shall be

 

LC004143 - Page 166 of 226

1

deemed to apply to each entity in such list;

2

     (710) “Manufacturer” means any person who manufactures, fabricates, assembles,

3

processes, or labels a finished cigarette and/or other tobacco products and/or electronic nicotine-

4

delivery system products;

5

     (811) “Other tobacco products” (OTP) means any cigars (excluding Little Cigars, as

6

defined in § 44-20.2-1, which are subject to cigarette tax), cheroots, stogies, smoking tobacco

7

(including granulated, plug cut, crimp cut, ready rubbed and any other kinds and forms of tobacco

8

suitable for smoking in a pipe or otherwise), chewing tobacco (including Cavendish, twist, plug,

9

scrap and any other kinds and forms of tobacco suitable for chewing), any and all forms of hookah,

10

shisha and “mu’assel” tobacco, snuff, and shall include any other articles or products made of or

11

containing tobacco, in whole or in part, or any tobacco substitute, except cigarettes;

12

     (912) “Person” means any individual, including an employee or agent, firm, fiduciary,

13

partnership, corporation, trust, or association, however formed;

14

     (1013) “Pipe” means an apparatus made of any material used to burn or vaporize products

15

so that the smoke or vapors can be inhaled or ingested by the user;

16

     (1114) “Place of business” means any location where cigarettes and/or other tobacco

17

products and/or electronic nicotine-delivery system products are sold, stored, or kept, including,

18

but not limited to; any storage room, attic, basement, garage or other facility immediately adjacent

19

to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or vending

20

machine;

21

     (1215) “Sale” or “sell” means gifts, exchanges, and barter of cigarettes and/or other

22

tobacco products and/or electronic nicotine-delivery system products. The act of holding, storing,

23

or keeping cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

24

products at a place of business for any purpose shall be presumed to be holding the cigarettes and/or

25

other tobacco products and/or electronic nicotine-delivery system products for sale. Furthermore,

26

any sale of cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

27

products by the servants, employees, or agents of the licensed dealer during business hours at the

28

place of business shall be presumed to be a sale by the licensee;

29

     (1316) “Stamp” means the impression, device, stamp, label, or print manufactured, printed,

30

or made as prescribed by the administrator to be affixed to packages of cigarettes, as evidence of

31

the payment of the tax provided by this chapter or to indicate that the cigarettes are intended for a

32

sale or distribution in this state that is exempt from state tax under the provisions of state law; and

33

also includes impressions made by metering machines authorized to be used under the provisions

34

of this chapter.

 

LC004143 - Page 167 of 226

1

     44-20-2. Manufacturer, iImporter, distributor, and dealer licenses required —

2

Licenses required.

3

     (a) Each manufacturer engaging in the business of selling any cigarette and/or any tobacco

4

products and/or electronic nicotine-delivery system products in this state shall secure a license,

5

unless otherwise prohibited by federal law, from the administrator before engaging in that business,

6

or continuing to engage in it.

7

     (b) Each person engaging in the business of selling cigarette and/or any tobacco products

8

and/or any electronic nicotine-delivery system products in this state, including any manufacturer,

9

importer, distributor or dealer, shall secure a license from the administrator before engaging in that

10

business, or continuing to engage in it. A separate application and license is required for each place

11

of business operated by a distributor, manufacturer, importer, or dealer; provided, that an operator

12

of vending machines for cigarette products is not required to obtain a distributor’s license for each

13

machine. If the applicant for a license does not have a place of business in this state, the license

14

shall be issued for such applicant’s principal place of business, wherever located. A licensee shall

15

notify the administrator within thirty (30) days in the event that it changes its principal place of

16

business. A separate license is required for each class of business if the applicant is engaged in

17

more than one of the activities required to be licensed by this section. No person shall maintain or

18

operate or cause to be operated a vending machine for cigarette products without procuring a

19

dealer’s license for each machine.

20

     (c) Effective October 1, 2024, the administrator shall implement a single license and

21

renewal application that allows for the licensure of retailers/dealers of cigarettes and/or any tobacco

22

products and/or any electronic nicotine-delivery system products and a separate single license and

23

renewal application that allows for the licensure of distributors, manufacturers, and importers of

24

cigarettes and/or any tobacco products and/or any electronic nicotine-delivery system products.

25

     (d) Immediately following the enactment of this chapter, any electronic nicotine-delivery

26

system products distributor or dealer, licensed in good-standing by the department of health

27

pursuant to chapter 1 of title 23, shall be considered licensed for purposes of compliance with this

28

chapter until the renewal date for such license pursuant to chapter 20 of title 44 occurs; thereafter,

29

such distributors and dealers shall be required to comply with the license requirements in this

30

chapter.

31

     44-20-3. Penalties for unlicensed business.

32

     Any manufacturer, importer, distributor or dealer who sells, offers for sale, or possesses

33

with intent to sell, cigarettes and/or any other tobacco products and/or any electronic nicotine-

34

delivery system products, without a license as provided in § 44-20-2, shall be guilty of a

 

LC004143 - Page 168 of 226

1

misdemeanor, and shall be fined not more than ten thousand dollars ($10,000) for each offense, or

2

be imprisoned for a term not to exceed one (1) year, or be punished by both a fine and

3

imprisonment.

4

     44-20-4. Application for license — Display.

5

     All licenses are issued by the tax administrator upon approval of application, stating, on

6

forms prescribed by the tax administrator, the information he or she may require for the proper

7

administration of this chapter. Each application for an a manufacturer, importer’s, or distributor’s

8

license shall be accompanied by a fee of one thousand dollars ($1,000); provided, that for a

9

distributor who does not affix stamps, the fee shall be one hundred dollars ($100); each application

10

for a dealer’s license shall be accompanied by a an application fee of twenty-five dollars ($25.00).

11

Each issued license shall be prominently displayed on the premises within this state, if any, covered

12

by the license. In the instance of an application for a distributor’s license, the administrator shall

13

require, in addition to other information as may be deemed necessary, the filing of affidavits from

14

three (3) cigarette manufacturers with national distribution stating that the manufacturer will supply

15

the distributor if the applicant is granted a license.

16

     44-20-4.1. License availability.

17

     (a) No license under this chapter may be granted, maintained or renewed if the applicant,

18

or any combination of persons owning directly or indirectly any interests in the applicant:

19

     (1) Owes five hundred dollars ($500) or more in delinquent taxes;

20

     (2) Is delinquent in any tax filings for one month or more;

21

     (3) Had a license under this chapter revoked by the administrator within the past two (2)

22

years;

23

     (4) Has been convicted of a crime relating to cigarettes and/or other tobacco products;

24

     (5) Is a cigarette manufacturer or importer that is neither: (i) A participating manufacturer

25

as defined in subsection II (jj) of the “Master Settlement Agreement” as defined in § 23-71-2; nor

26

(ii) In full compliance with chapter 20.2 of this title and § 23-71-3;

27

     (6) Has imported, or caused to be imported, into the United States any cigarette, and/or

28

other tobacco product and/or electronic nicotine-delivery system products in violation of 19 U.S.C.

29

§ 1681a or any other state or federal law; or

30

     (7) Has imported, or caused to be imported into the United States, or manufactured for sale

31

or distribution in the United States any cigarette that does not fully comply with the Federal

32

Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.).

33

     (b)(1) No person shall apply for a new license or permit (as defined in § 44-19-1) or

34

renewal of a license or permit, and no license or permit shall be issued or renewed for any applicant,

 

LC004143 - Page 169 of 226

1

or any combination of persons owning directly or indirectly any interests in the applicant, unless

2

all outstanding fines, fees, or other charges relating to any license or permit held by the applicant,

3

or any combination of persons owning directly or indirectly any interests in the applicant, as well

4

as any other tax obligations of the applicant, or any combination of persons owning directly or

5

indirectly any interests in the applicant have been paid.

6

     (2) No license or permit shall be issued relating to a business until all prior licenses or

7

permits relating to that business or to that location have been officially terminated and all fines,

8

fees, or charges relating to the prior license or permit have been paid or otherwise resolved or the

9

administrator has found that the person applying for the new license or permit is not acting as an

10

agent for the prior licensee or permit holder who is subject to any such related fines, fees or charges

11

that are still due. Evidence of such agency status includes, but is not limited to, a direct familial

12

relationship and/or an employment, contractual, or other formal financial or business relationship

13

with the prior licensee or permit holder.

14

     (3) No person shall apply for a new license or permit pertaining to a specific location in

15

order to evade payment of any fines, fees, or other charges relating to a prior license or permit.

16

     (4) No new license or permit shall be issued for a business at a specific location for which

17

a license or permit already has been issued unless there is a bona fide, good-faith change in

18

ownership of the business at that location.

19

     (5) No license or permit shall be issued, renewed, or maintained for any person, including

20

the owners of the business being licensed or having applied and received a permit, that has been

21

convicted of violating any criminal law relating to tobacco products, the payment of taxes, or fraud

22

or has been ordered to pay civil fines of more than twenty-five thousand dollars ($25,000) dollars

23

for violations of any civil law relating to tobacco products, the payment of taxes, or fraud.

24

     44-20-5. Expiration, Dduration, and renewal of manufacturer’s, importer’s,

25

distributor’s and dealer’s licenses — Renewal.

26

     (a) Effective October 1, 2024 to add manufacturer and distributor: Any manufacturer,

27

importer, or distributor license and any license issued by the tax administrator authorizing a dealer

28

to sell cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products

29

or a manufacturer to sell electronic nicotine-delivery system products in this state shall expire at

30

midnight on June 30 next succeeding the date of issuance unless (1) suspended or revoked by the

31

tax administrator, (2) the business with respect to which the license was issued changes ownership,

32

(3) the manufacturer, importer, distributor or dealer ceases to transact the business for which the

33

license was issued, or (4) after a period of time set by the administrator; provided such period of

34

time shall not be longer than three (3) years, in any of which cases the license shall expire and

 

LC004143 - Page 170 of 226

1

terminate and the holder shall immediately return the license to the tax administrator.

2

     (b) Every holder of a dealer’s license shall annually, on or before February 1 of each year,

3

renew its license by filing an application for renewal along with a twenty-five dollar ($25.00)

4

renewal fee. The renewal license is valid for the period July 1 of that calendar year through June

5

30 of the subsequent calendar year.

6

     44-20-8.2. Transactions only with licensed manufacturers, importers, distributors,

7

and dealers.

8

     A manufacturer or importer may sell or distribute cigarettes and/or other tobacco products

9

and/or electronic nicotine-delivery system products to a person located or doing business within

10

this state, only if such person is a licensed importer or distributor. An importer may obtain cigarettes

11

and/or other tobacco products and/or electronic nicotine-delivery system products only from a

12

licensed manufacturer. A distributor may sell or distribute cigarettes and/or other tobacco products

13

and/or electronic nicotine-delivery system products to a person located or doing business within

14

this state, only if such person is a licensed distributor or dealer. A distributor may obtain cigarettes

15

and/or other tobacco products and/or electronic nicotine-delivery system products only from a

16

licensed manufacturer, importer, or distributor. A dealer may obtain cigarettes and/or other tobacco

17

products and/or electronic nicotine-delivery system products only from a licensed distributor.

18

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

19

pipe tobacco products, and electronic nicotine-delivery system products.

20

     (a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, and pipe

21

tobacco products, and electronic nicotine-delivery system products sold, or held for sale in the state

22

by any person, the payment of the tax to be accomplished according to a mechanism established by

23

the administrator, division of taxation, department of revenue. The tax imposed by this section shall

24

be as follows:

25

     (1) At the rate of eighty percent (80%) of the wholesale cost of other tobacco products,

26

cigars, pipe tobacco products, and smokeless tobacco other than snuff.

27

     (2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of

28

cigars, the tax shall not exceed fifty cents ($.50) for each cigar.

29

     (3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like

30

rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net weight

31

as listed by the manufacturer; provided, however, that any product listed by the manufacturer as

32

having a net weight of less than 1.2 ounces shall be taxed as if the product has a net weight of 1.2

33

ounces.

34

     (4) Effective October 1, 2024, at the rate of eighty percent (80%) of the wholesale cost of

 

LC004143 - Page 171 of 226

1

electronic nicotine-delivery system products as defined herein.

2

     (i) Existing Inventory Floor Tax: For all electronic nicotine-delivery system products held

3

by licensed electronic nicotine-delivery system products retailers as of October 1, 2024: Each

4

person engaging in the business of selling electronic nicotine-delivery system products at retail in

5

this state shall pay a tax measured by the wholesale cost of electronic nicotine-delivery system

6

products held by the person in this state at 12:01 a.m. on October 1, 2024, and is computed at the

7

rate of eighty percent (80%) of the wholesale cost of electronic nicotine-delivery system products

8

on October 1, 2024. Each person subject to the payment of the tax imposed by this section shall,

9

on or before October 16, 2024, file a return, under oath or certified under the penalties of perjury,

10

with the administrator on forms furnished by him or her, showing wholesale cost of electronic

11

nicotine-delivery system products in that person’s possession in this state at 12:01 a.m. on October

12

1, 2024, as described in this section, and the amount of tax due, and shall at the time of filing the

13

return pay the tax to the administrator. Failure to obtain forms shall not be an excuse for the failure

14

to make a return containing the information required by the administrator.

15

     (ii) For all electronic nicotine-delivery system products sold by licensed electronic

16

nicotine-delivery system products distributors, manufacturers and/or importers in Rhode Island as

17

of October 1, 2024: any person engaging in the business of distributing at wholesale electronic

18

nicotine-delivery system products in this state shall pay a tax measured by the wholesale cost of

19

electronic nicotine-delivery system products computed at the rate of eighty percent (80%) of the

20

wholesale cost of electronic nicotine-delivery system products.

21

     (iii) Exemptions. The provisions of this chapter shall not apply to any product used for

22

research purposes by a bona fide educational or governmental organization.

23

     (b) Prior to October 1, 2024:  Any dealer having in his or her possession any other tobacco

24

products with respect to the storage or use of which a tax is imposed by this section shall, within

25

five (5) days after coming into possession of the other tobacco products in this state, file a return

26

with the tax administrator in a form prescribed by the tax administrator. The return shall be

27

accompanied by a payment of the amount of the tax shown on the form to be due. Records required

28

under this section shall be preserved on the premises described in the relevant license in such a

29

manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized

30

personnel of the administrator.

31

     Effective October 1, 2024, all other tobacco products, and electronic nicotine delivery

32

system products sold at wholesale in Rhode Island must be sold by a Rhode Island licensed

33

distributor, manufacturer or importer and purchases of other tobacco products and/or electronic

34

nicotine delivery system products from an unlicensed distributor, manufacturer or importer are

 

LC004143 - Page 172 of 226

1

prohibited. Any other tobacco products and/or electronic nicotine delivery system products

2

purchased and/or obtained from an unlicensed person shall be subject to the terms of this chapter

3

including but not limited to section 44-20-15 and shall be taxed pursuant to section 44-20-13.2.

4

     (c) The proceeds collected are paid into the general fund.

5

     44-20-15. Confiscation of contraband cigarettes, other tobacco products, electronic

6

nicotine-delivery system products, and other property.

7

     (a) All cigarettes, and other tobacco products, and/or electronic nicotine-delivery system

8

products that are held for sale or distribution within the borders of this state in violation of the

9

requirements of this chapter or federal law are declared to be contraband goods and may be seized

10

by the tax administrator or his or her agents, or employees, or by any sheriff, or his or her deputy,

11

or any police officer when directed by the tax administrator to do so, without a warrant. All

12

contraband goods seized by the state under this chapter shall be destroyed.

13

     (b) All fixtures, equipment, and all other materials and personal property on the premises

14

of any distributor or dealer who, with the intent to defraud the state, fails to keep or make any

15

record, return, report, or inventory; keeps or makes any false or fraudulent record, return, report, or

16

inventory required by this chapter; refuses to pay any tax imposed by this chapter; or attempts in

17

any manner to evade or defeat the requirements of this chapter shall be forfeited to the state.

18

     44-20-33. Sale of contraband cigarettes, or contraband other tobacco products or

19

contraband electronic nicotine-delivery system products prohibited.

20

     No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or

21

possess with intent to sell any contraband other tobacco products without written record of the

22

payment of tax imposed by this chapter, or contraband electronic nicotine-delivery system products

23

without written record of the payment of tax imposed by this chapter or contraband cigarettes, the

24

packages or boxes of which do not bear stamps evidencing the payment of the tax imposed by this

25

chapter.

26

     44-20-35. Penalties for violations as to unstamped contraband cigarettes, or

27

contraband other tobacco products or contraband electronic nicotine-delivery system

28

products.

29

     (a) Any person who violates any provision of §§ 44-20-33 and 44-20-34 shall be fined or

30

imprisoned, or both fined and imprisoned, as follows:

31

     (1) For a first offense in a twenty-four-month (24) period, fined not more than ten (10)

32

times the retail value of the contraband cigarettes, contraband electronic nicotine-delivery system

33

products, and/or contraband other tobacco products, or be imprisoned not more than one (1) year,

34

or be both fined and imprisoned;

 

LC004143 - Page 173 of 226

1

     (2) For a second or subsequent offense in a twenty-four-month (24) period, fined not more

2

than twenty-five (25) times the retail value of the contraband cigarettes, contraband electronic

3

nicotine-delivery system products, and/or contraband other tobacco products, or be imprisoned not

4

more than three (3) years, or be both fined and imprisoned.

5

     (b) When determining the amount of a fine sought or imposed under this section, evidence

6

of mitigating factors, including history, severity, and intent shall be considered.

7

     44-20-40. Records — Investigation and inspection of books, premises and stock.

8

     (a) Each manufacturer, importer, distributor and dealer shall maintain copies of invoices or

9

equivalent documentation for, or itemized for, each of its facilities for each transaction (other than

10

a retail transaction with a consumer) involving the sale, purchase, transfer, consignment, or receipt

11

of cigarettes, other tobacco products and electronic nicotine-delivery system products. The invoices

12

or documentation shall show the name and address of the other party and the quantity by brand

13

style of the cigarettes, other tobacco products and electronic nicotine-delivery system products

14

involved in the transaction. All records and invoices required under this section must be safely

15

preserved for three (3) years in a manner to insure permanency and accessibility for inspection by

16

the administrator or his or her authorized agents.

17

     (b) Records required under this section shall be preserved on the premises described in the

18

relevant license in such a manner as to ensure permanency and accessibility for inspection at

19

reasonable hours by authorized personnel of the administrator. With the administrator’s permission,

20

persons with multiple places of business may retain centralized records, but shall transmit

21

duplicates of the invoices or the equivalent documentation to each place of business within twenty-

22

four (24) hours upon the request of the administrator or his or her designee.

23

     (c) The administrator or his or her authorized agents may examine the books, papers,

24

reports and records of any manufacturer, importer, distributor or dealer in this state for the purpose

25

of determining whether taxes imposed by this chapter have been fully paid, and may investigate

26

the stock of cigarettes, other tobacco products and/or electronic nicotine-delivery system products

27

in or upon any premises for the purpose of determining whether the provisions of this chapter are

28

being obeyed. The administrator in his or her sole discretion may share the records and reports

29

required by such sections with law enforcement officials of the federal government or other states.

30

     44-20-40.1. Inspections.

31

     (a) The administrator or his or her duly authorized agent shall have authority to enter and

32

inspect, without a warrant during normal business hours, and with a warrant during nonbusiness

33

hours, the facilities and records of any manufacturer, importer, distributor, or dealer.

34

     (b) In any case where the administrator or his or her duly authorized agent, or any police

 

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1

officer of this state, has knowledge or reasonable grounds to believe that any vehicle is transporting

2

cigarettes, or other tobacco products or electronic nicotine-delivery system products in violation of

3

this chapter, the administrator, such agent, or such police officer, is authorized to stop such vehicle

4

and to inspect the same for contraband cigarettes, or contraband other tobacco products or

5

contraband electronic nicotine-delivery system products.

6

     44-20-43. Violations as to reports and records.

7

     Any person who fails to submit the reports required in this chapter or by the tax

8

administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who

9

refuses to permit the tax administrator or his or her authorized agent to examine any books, records,

10

papers, or stocks of cigarettes, or other tobacco products or electronic nicotine-delivery system

11

products as provided in this chapter, or who refuses to supply the tax administrator with any other

12

information which the tax administrator requests for the reasonable and proper enforcement of the

13

provisions of this chapter, shall be guilty of a misdemeanor punishable by imprisonment up to one

14

(1) year, or a fine of not more than five thousand dollars ($5,000), or both, for the first offense, and

15

for each subsequent offense, shall be fined not more than ten thousand dollars ($10,000), or be

16

imprisoned not more than five (5) years, or both.

17

     44-20-45. Importation of cigarettes, and/or other tobacco products, and/or electronic

18

nicotine-delivery system products with intent to evade tax.

19

     Any person, firm, corporation, club, or association of persons who or that orders any

20

cigarettes, and/or other tobacco products, and/or electronic nicotine-delivery system products for

21

another; or pools orders for cigarettes, and/or other tobacco products, and/or electronic nicotine-

22

delivery system products from any persons; or conspires with others for pooling orders; or receives

23

in this state any shipment of contraband cigarettes, and/or contraband other tobacco products,

24

and/or electronic nicotine-delivery system products on which the tax imposed by this chapter has

25

not been paid, for the purpose and intention of violating the provisions of this chapter or to avoid

26

payment of the tax imposed in this chapter, is guilty of a felony and shall be fined one hundred

27

thousand dollars ($100,000) or five (5) times the retail value of the cigarettes, other tobacco

28

products, and/or electronic nicotine-delivery system products involved, whichever is greater, or

29

imprisoned not more than fifteen (15) years, or both.

30

     44-20-47. Hearings by tax administrator.

31

     Any person aggrieved by any action under this chapter of the tax administrator or his or

32

her authorized agent for which a hearing is not elsewhere provided may apply to the tax

33

administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons why

34

the hearing should be granted and the manner of relief sought. The tax administrator shall notify

 

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1

the applicant of the time and place fixed for the hearing. After the hearing, the tax administrator

2

may make the order in the premises as may appear to the tax administrator just and lawful and shall

3

furnish a copy of the order to the applicant. The tax administrator may, by notice in writing, at any

4

time, order a hearing on his or her own initiative and require the taxpayer or any other individual

5

whom the tax administrator believes to be in possession of information concerning any

6

manufacture, importation, or sale of cigarettes, other tobacco products, and/or electronic nicotine-

7

delivery system products to appear before the tax administrator or his or her authorized agent with

8

any specific books of account, papers, or other documents, for examination relative to the hearing.

9

     44-20-51.1. Civil penalties.

10

     (a) Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her by

11

this chapter, or to do, or cause to be done, any of the things required by this chapter, or does

12

anything prohibited by this chapter, shall, in addition to any other penalty provided in this chapter,

13

be liable as follows:

14

     (1) For a first offense in a twenty-four-month (24) period, a penalty of not more than ten

15

(10) times the retail value of the cigarettes, and/or other tobacco products and/or electronic nicotine-

16

delivery system products involved; and

17

     (2) For a second or subsequent offense in a twenty-four-month (24) period, a penalty of

18

not more than twenty-five (25) times the retail value of the cigarettes, and/or other tobacco products

19

and/or contraband electronic nicotine-delivery system products involved.

20

     (b) Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her by

21

this chapter, or to do, or cause to be done, any of the things required by this chapter, or does

22

anything prohibited by this chapter, fails to pay any tax imposed by this chapter at the time

23

prescribed by law or regulations, shall, in addition to any other penalty provided in this chapter, be

24

liable for a penalty of one thousand dollars ($1,000) or not more than five (5) times the tax due but

25

unpaid, whichever is greater.

26

     (c) When determining the amount of a penalty sought or imposed under this section,

27

evidence of mitigating or aggravating factors, including history, severity, and intent, shall be

28

considered.

29

     SECTION 18. Effective October 1, 2024, Chapter 44-20 of the General Laws entitled

30

"Cigarette and Other Tobacco Products Tax" is hereby amended by adding thereto the following

31

sections:

32

     44-20-60. Exemption of sales of certain electronic nicotine-delivery system products.

33

     Notwithstanding any provision of the general or public laws to the contrary, the sale of

34

electronic nicotine-delivery system products are exempted from the taxes imposed by this chapter

 

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1

if they are subject to the taxes imposed by chapter 28.11 of title 21 and chapter 70 of this title.

2

44-20-61. Product restrictions on electronic nicotine-delivery system products.

3

     (a) For purposes of this section, the following terms shall have the following meanings:

4

     (1) “Characterizing flavor” means a distinguishable taste or aroma, other than the taste or

5

aroma of tobacco, distinguishable by an ordinary consumer, imparted either prior to, or during,

6

consumption of an electronic nicotine-delivery system product or component part thereof,

7

including, but not limited to, tastes or aromas relating to any fruit, mint, menthol, wintergreen,

8

chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb, or spice or which impart

9

a cooling or numbing sensation. The determination of whether an electronic nicotine-delivery

10

system product has a characterizing flavor shall not be based solely on the use of additives,

11

flavorings, or particular ingredients, but shall instead consider all aspects of a final product

12

including, but not limited to, taste, flavor and aroma, product labeling, and advertising statements.

13

A flavor shall be presumed to be a characterizing flavor if a dealer, manufacturer, or distributor has

14

made a statement or claim directed to consumers or the public about such flavor, whether expressed

15

or implied, that it has a distinguishable taste or aroma (other than the taste or aroma of tobacco).

16

     (2) “Flavored electronic nicotine-delivery system product” means any electronic nicotine-

17

delivery system product that imparts a characterizing flavor.

18

     (b) The sale, or offer for sale of, or the possession with intent to sell or to offer for sale,

19

flavored electronic nicotine-delivery system products to consumers within the State of Rhode

20

Island is hereby prohibited. Compassion centers and licensed cultivators registered with the State

21

of Rhode Island Department of Business Regulations- Office of Cannabis Regulation under chapter

22

28.6 of title 21 are exempt from this provision except as to products that contain, are made of, or

23

are derived from tobacco or nicotine, natural or synthetic.

24

     44-20-62. Disclosure of information-electronic nicotine-delivery system products

25

licensees.

26

     The department of health shall disclose to the tax administrator all information regarding

27

persons and entities who hold, or previously held, a license issued pursuant to § 23-1-56.

28

SECTION 19. Effective October 1, 2024, Section 44-20-6 of the General Laws in Chapter

29

44-20 entitled "Cigarette and Other Tobacco Products Tax" is hereby repealed.

30

44-20-6. Expiration and renewal of distributors’ licenses.

31

     Each distributor’s license issued under the provisions of § 44-20-4 expires at midnight on

32

May 31 next succeeding the date of issuance, unless sooner revoked by the tax administrator, as

33

provided in § 44-20-8, or unless the business with respect to which the license was issued changes

34

ownership, in either of which cases the holder of the license shall immediately return it to the tax

 

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1

administrator. The holder of each license may, annually, before the expiration date of the license

2

then held by the licensee, renew his or her license for a further period of one year, on application

3

accompanied by the fee prescribed in § 44-20-4.

4

     SECTION 20. Effective October 1, 2024, Sections 44-20.1-3 of the General Laws in

5

Chapter 44-20.1 entitled "Delivery Sales of Cigarettes" is hereby amended to read as follows: 

6

     44-20.1-3. Age Verification requirements.

7

     (a) No person, including but not limited to online retailers, shall mail, ship, or otherwise

8

deliver cigarettes, other tobacco products, or electronic nicotine delivery systems in connection

9

with a delivery sale unless such person prior to the first delivery sale to such consumer:

10

     (1) Obtains from the prospective consumer a certification that includes:

11

     (i) A reliable confirmation that the consumer is at least the legal minimum purchase age;

12

and

13

     (ii) A statement signed by the prospective consumer in writing that certifies the prospective

14

consumer’s address and that the consumer is at least eighteen twenty-one (1821) years of age. Such

15

statement shall also confirm:

16

     (A) That the prospective consumer understands that signing another person’s name to such

17

certification is illegal;

18

     (B) That the sale of cigarettes to individuals under the legal minimum purchase age is

19

illegal;

20

     (C) That the purchase of cigarettes by individuals under the legal minimum purchase age

21

is illegal under the laws of the state; and

22

     (D) That the prospective consumer wants to receive mailings from a tobacco company;

23

     (2) Makes a good faith effort to verify the information contained in the certification

24

provided by the prospective consumer pursuant to subsection (1) against a commercially available

25

database, or obtains a photocopy or other image of the valid, government-issued identification

26

stating the date of birth or age of the individual placing the order;

27

     (3) Provides to the prospective consumer, via e-mail or other means, a notice that meets

28

the requirements of § 44-20.1-4; and

29

     (4) In the case of an order for cigarettes pursuant to an advertisement on the Internet,

30

receives payment for the delivery sale from the prospective consumer by a credit or debit card that

31

has been issued in such consumer’s name or by check.

32

     (b) Persons accepting purchase orders for delivery sales may request that the prospective

33

consumers provide their e-mail addresses.

34

     (c) The division of taxation, in consultation with the department of health, may promulgate

 

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1

rules and regulations pertaining to this section.

2

     SECTION 21. Effective January 1, 2025, Section 44-23-1 of the General Laws in Chapter

3

44-23 entitled "Estate and Transfer Taxes – Enforcement and Collection" is hereby amended to

4

read as follows:

5

     44-23-1. Statements filed by executors, administrators and heirs-at-law.

6

     (a) Every executor, administrator, and heir-at-law, within nine (9) months after the death

7

of the decedent, shall file with the tax administrator a statement under oath showing the full and

8

fair cash value of the estate, the amounts paid out from the estate for claims, expenses, charges, and

9

fees, and the statement shall also provide the names and addresses of all persons entitled to take

10

any share or interest of the estate as legatees or distributees of the estate.

11

     (b) For estates of decedents with a date of death prior to January 1, 2025, A a fee of fifty

12

dollars ($50.00) is shall be paid when filing any statement required by this section. All fees received

13

under this section are allocated to the tax administrator for enforcement and collection of taxes.

14

     (c) For estates of decedents with a date of death on or after January 1, 2025, no fee shall be

15

paid when filing any statement required by this section.

16

     SECTION 22. Effective January 1, 2025, Section 44-30-12 of the General Laws in Chapter

17

44-30 entitled "Personal Income Tax; Part II; Residents" is hereby amended to read as follows:

18

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

19

     (a) General. The Rhode Island income of a resident individual means his or her adjusted

20

gross income for federal income tax purposes, with the modifications specified in this section.

21

     (b) Modifications increasing federal adjusted gross income.  There shall be added to federal

22

adjusted gross income:

23

     (1) Interest income on obligations of any state, or its political subdivisions, other than

24

Rhode Island or its political subdivisions;

25

     (2) Interest or dividend income on obligations or securities of any authority, commission,

26

or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the

27

extent exempted by the laws of the United States from federal income tax but not from state income

28

taxes;

29

     (3) The modification described in § 44-30-25(g);

30

     (4)(i) The amount defined below of a nonqualified withdrawal made from an account in

31

the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified

32

withdrawal is:

33

     (A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal

34

Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-

 

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1

6.1; and

2

     (B) A withdrawal or distribution that is:

3

     (I) Not applied on a timely basis to pay “qualified higher education expenses” as defined

4

in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;

5

     (II) Not made for a reason referred to in § 16-57-6.1(e); or

6

     (III) Not made in other circumstances for which an exclusion from tax made applicable by

7

Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover,

8

withdrawal, or distribution is made within two (2) taxable years following the taxable year for

9

which a contributions modification pursuant to subsection (c)(4) of this section is taken based on

10

contributions to any tuition savings program account by the person who is the participant of the

11

account at the time of the contribution, whether or not the person is the participant of the account

12

at the time of the transfer, rollover, withdrawal or distribution;

13

     (ii) In the event of a nonqualified withdrawal under subsection (b)(4)(i)(A) or (b)(4)(i)(B)

14

of this section, there shall be added to the federal adjusted gross income of that person for the

15

taxable year of the withdrawal an amount equal to the lesser of:

16

     (A) The amount equal to the nonqualified withdrawal reduced by the sum of any

17

administrative fee or penalty imposed under the tuition savings program in connection with the

18

nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the

19

person’s federal adjusted gross income for the taxable year; and

20

     (B) The amount of the person’s contribution modification pursuant to subsection (c)(4) of

21

this section for the person’s taxable year of the withdrawal and the two (2) prior taxable years less

22

the amount of any nonqualified withdrawal for the two (2) prior taxable years included in

23

computing the person’s Rhode Island income by application of this subsection for those years. Any

24

amount added to federal adjusted gross income pursuant to this subdivision shall constitute Rhode

25

Island income for residents, nonresidents and part-year residents;

26

     (5) The modification described in § 44-30-25.1(d)(3)(i);

27

     (6) The amount equal to any unemployment compensation received but not included in

28

federal adjusted gross income;

29

     (7) The amount equal to the deduction allowed for sales tax paid for a purchase of a

30

qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6); and

31

     (8) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck

32

Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus

33

Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or

34

any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount

 

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1

of the loan forgiven exceeds $250,000, including an individual’s distributive share of the amount

2

of a pass-through entity’s loan forgiveness in excess of $250,000.

3

     (c) Modifications reducing federal adjusted gross income. There shall be subtracted from

4

federal adjusted gross income:

5

     (1) Any interest income on obligations of the United States and its possessions to the extent

6

includible in gross income for federal income tax purposes, and any interest or dividend income on

7

obligations, or securities of any authority, commission, or instrumentality of the United States to

8

the extent includible in gross income for federal income tax purposes but exempt from state income

9

taxes under the laws of the United States; provided, that the amount to be subtracted shall in any

10

case be reduced by any interest on indebtedness incurred or continued to purchase or carry

11

obligations or securities the income of which is exempt from Rhode Island personal income tax, to

12

the extent the interest has been deducted in determining federal adjusted gross income or taxable

13

income;

14

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

15

     (3) The amount of any withdrawal or distribution from the “tuition savings program”

16

referred to in § 16-57-6.1 that is included in federal adjusted gross income, other than a withdrawal

17

or distribution or portion of a withdrawal or distribution that is a nonqualified withdrawal;

18

     (4) Contributions made to an account under the tuition savings program, including the

19

“contributions carryover” pursuant to subsection (c)(4)(iv) of this section, if any, subject to the

20

following limitations, restrictions and qualifications:

21

     (i) The aggregate subtraction pursuant to this subdivision for any taxable year of the

22

taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint

23

return;

24

     (ii) The following shall not be considered contributions:

25

     (A) Contributions made by any person to an account who is not a participant of the account

26

at the time the contribution is made;

27

     (B) Transfers or rollovers to an account from any other tuition savings program account or

28

from any other “qualified tuition program” under section 529 of the Internal Revenue Code, 26

29

U.S.C. § 529; or

30

     (C) A change of the beneficiary of the account;

31

     (iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer’s federal

32

adjusted gross income to less than zero (0);

33

     (iv) The contributions carryover to a taxable year for purpose of this subdivision is the

34

excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition

 

LC004143 - Page 181 of 226

1

savings program for all preceding taxable years for which this subsection is effective over the sum

2

of:

3

     (A) The total of the subtractions under this subdivision allowable to the taxpayer for all

4

such preceding taxable years; and

5

     (B) That part of any remaining contribution carryover at the end of the taxable year which

6

exceeds the amount of any nonqualified withdrawals during the year and the prior two (2) taxable

7

years not included in the addition provided for in this subdivision for those years. Any such part

8

shall be disregarded in computing the contributions carryover for any subsequent taxable year;

9

     (v) For any taxable year for which a contributions carryover is applicable, the taxpayer

10

shall include a computation of the carryover with the taxpayer’s Rhode Island personal income tax

11

return for that year, and if for any taxable year on which the carryover is based the taxpayer filed a

12

joint Rhode Island personal income tax return but filed a return on a basis other than jointly for a

13

subsequent taxable year, the computation shall reflect how the carryover is being allocated between

14

the prior joint filers;

15

     (5) The modification described in § 44-30-25.1(d)(1);

16

     (6) Amounts deemed taxable income to the taxpayer due to payment or provision of

17

insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36 or

18

other coverage plan;

19

     (7) Modification for organ transplantation.

20

     (i) An individual may subtract up to ten thousand dollars ($10,000) from federal adjusted

21

gross income if he or she, while living, donates one or more of his or her human organs to another

22

human being for human organ transplantation, except that for purposes of this subsection, “human

23

organ” means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract

24

modification that is claimed hereunder may be claimed in the taxable year in which the human

25

organ transplantation occurs.

26

     (ii) An individual may claim that subtract modification hereunder only once, and the

27

subtract modification may be claimed for only the following unreimbursed expenses that are

28

incurred by the claimant and related to the claimant’s organ donation:

29

     (A) Travel expenses.

30

     (B) Lodging expenses.

31

     (C) Lost wages.

32

     (iii) The subtract modification hereunder may not be claimed by a part-time resident or a

33

nonresident of this state;

34

     (8) Modification for taxable Social Security income.

 

LC004143 - Page 182 of 226

1

     (i) For tax years beginning on or after January 1, 2016:

2

     (A) For a person who has attained the age used for calculating full or unreduced Social

3

Security retirement benefits who files a return as an unmarried individual, head of household, or

4

married filing separate whose federal adjusted gross income for the taxable year is less than eighty

5

thousand dollars ($80,000); or

6

     (B) A married individual filing jointly or individual filing qualifying widow(er) who has

7

attained the age used for calculating full or unreduced Social Security retirement benefits whose

8

joint federal adjusted gross income for the taxable year is less than one hundred thousand dollars

9

($100,000), an amount equal to the Social Security benefits includible in federal adjusted gross

10

income.

11

     (ii) Adjustment for inflation. The dollar amount contained in subsections (c)(8)(i)(A) and

12

(c)(8)(i)(B) of this section shall be increased annually by an amount equal to:

13

     (A) Such dollar amount contained in subsections (c)(8)(i)(A) and (c)(8)(i)(B) of this

14

section adjusted for inflation using a base tax year of 2000, multiplied by;

15

     (B) The cost-of-living adjustment with a base year of 2000.

16

     (iii) For the purposes of this section the cost-of-living adjustment for any calendar year is

17

the percentage (if any) by which the consumer price index for the preceding calendar year exceeds

18

the consumer price index for the base year. The consumer price index for any calendar year is the

19

average of the consumer price index as of the close of the twelve-month (12) period ending on

20

August 31, of such calendar year.

21

     (iv) For the purpose of this section the term “consumer price index” means the last

22

consumer price index for all urban consumers published by the department of labor. For the purpose

23

of this section the revision of the consumer price index which is most consistent with the consumer

24

price index for calendar year 1986 shall be used.

25

     (v) If any increase determined under this section is not a multiple of fifty dollars ($50.00),

26

such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a

27

married individual filing separate return, if any increase determined under this section is not a

28

multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple

29

of twenty-five dollars ($25.00);

30

     (9) Modification of taxable retirement income from certain pension plans or annuities.

31

     (i) For tax years beginning on or after January 1, 2017, until the tax year beginning January

32

1, 2022, a modification shall be allowed for up to fifteen thousand dollars ($15,000), and for tax

33

years beginning on or after January 1, 2023, until the tax year beginning January 1, 2024, a

34

modification shall be allowed for up to twenty thousand dollars ($20,000), and for tax years

 

LC004143 - Page 183 of 226

1

beginning on or after January 1, 2025, a modification shall be allowed for up to fifty thousand

2

dollars ($50,000), of taxable pension and/or annuity income that is included in federal adjusted

3

gross income for the taxable year:

4

     (A) For a person who has attained the age used for calculating full or unreduced Social

5

Security retirement benefits who files a return as an unmarried individual, head of household, or

6

married filing separate whose federal adjusted gross income for such taxable year is less than the

7

amount used for the modification contained in subsection (c)(8)(i)(A) of this section an amount not

8

to exceed $15,000 for tax years beginning on or after January 1, 2017, until the tax year beginning

9

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

10

beginning on or after January 1, 2023, until the tax year beginning January 1, 2024, and an amount

11

not to exceed fifty thousand dollars ($50,000) for tax years beginning on or after January 1, 2025,

12

of taxable pension and/or annuity income includible in federal adjusted gross income; or

13

     (B) For a married individual filing jointly or individual filing qualifying widow(er) who

14

has attained the age used for calculating full or unreduced Social Security retirement benefits whose

15

joint federal adjusted gross income for such taxable year is less than the amount used for the

16

modification contained in subsection (c)(8)(i)(B) of this section an amount not to exceed $15,000

17

for tax years beginning on or after January 1, 2017, until the tax year beginning January 1, 2022,

18

and an amount not to exceed twenty thousand dollars ($20,000) for tax years beginning on or after

19

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

20

thousand dollars ($50,000) for tax years beginning on or after January 1, 2025, of taxable pension

21

and/or annuity income includible in federal adjusted gross income.

22

     (ii) Adjustment for inflation. The dollar amount contained by reference in subsections

23

(c)(9)(i)(A) and (c)(9)(i)(B) of this section shall be increased annually for tax years beginning on

24

or after January 1, 2018, by an amount equal to:

25

     (A) Such dollar amount contained by reference in subsections (c)(9)(i)(A) and (c)(9)(i)(B)

26

of this section adjusted for inflation using a base tax year of 2000, multiplied by;

27

     (B) The cost-of-living adjustment with a base year of 2000.

28

     (iii) For the purposes of this section, the cost-of-living adjustment for any calendar year is

29

the percentage (if any) by which the consumer price index for the preceding calendar year exceeds

30

the consumer price index for the base year. The consumer price index for any calendar year is the

31

average of the consumer price index as of the close of the twelve-month (12) period ending on

32

August 31, of such calendar year.

33

     (iv) For the purpose of this section, the term “consumer price index” means the last

34

consumer price index for all urban consumers published by the department of labor. For the purpose

 

LC004143 - Page 184 of 226

1

of this section, the revision of the consumer price index which is most consistent with the consumer

2

price index for calendar year 1986 shall be used.

3

     (v) If any increase determined under this section is not a multiple of fifty dollars ($50.00),

4

such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a

5

married individual filing a separate return, if any increase determined under this section is not a

6

multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple

7

of twenty-five dollars ($25.00).

8

     (vi) For tax years beginning on or after January 1, 2022, the dollar amount contained by

9

reference in subsection (c)(9)(i)(A) shall be adjusted to equal the dollar amount contained in

10

subsection (c)(8)(i)(A), as adjusted for inflation, and the dollar amount contained by reference in

11

subsection (c)(9)(i)(B) shall be adjusted to equal the dollar amount contained in subsection

12

(c)(8)(i)(B), as adjusted for inflation;

13

     (10) Modification for Rhode Island investment in opportunity zones. For purposes of a

14

taxpayer’s state tax liability, in the case of any investment in a Rhode Island opportunity zone by

15

the taxpayer for at least seven (7) years, a modification to income shall be allowed for the

16

incremental difference between the benefit allowed under 26 U.S.C. § 1400Z-2(b)(2)(B)(iv) and

17

the federal benefit allowed under 26 U.S.C. § 1400Z-2(c);

18

     (11) Modification for military service pensions.

19

     (i) For purposes of a taxpayer’s state tax liability, a modification to income shall be allowed

20

as follows:

21

     (A)  For the tax years beginning on January 1, 2023, a taxpayer may subtract from federal

22

adjusted gross income the taxpayer’s military service pension benefits included in federal adjusted

23

gross income;

24

     (ii)  As used in this subsection, the term “military service” shall have the same meaning as

25

set forth in 20 C.F.R. § 212.2;

26

     (iii) At no time shall the modification allowed under this subsection alone or in conjunction

27

with subsection (c)(9) exceed the amount of the military service pension received in the tax year

28

for which the modification is claimed; and

29

     (12)  Any rebate issued to the taxpayer pursuant to § 44-30-103 to the extent included in

30

gross income for federal tax purposes.; and

31

     (13) For tax years beginning on or after January 1, 2025, in the case of a taxpayer that is

32

licensed in accordance with chapters 28.6 and/or 28.11 of title 21, the amount equal to any

33

expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed under

34

26 U.S.C. § 280E.

 

LC004143 - Page 185 of 226

1

     (d) Modification for Rhode Island fiduciary adjustment.  There shall be added to, or

2

subtracted from, federal adjusted gross income (as the case may be) the taxpayer’s share, as

3

beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44-

4

30-17.

5

     (e) Partners. The amounts of modifications required to be made under this section by a

6

partner, which relate to items of income or deduction of a partnership, shall be determined under §

7

44-30-15.

8

     SECTION 23. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled “Motor

9

Vehicle and Trailer Excise Tax Elimination Act of 1998” is hereby amended to read as follows:

10

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

11

     (a) In fiscal years 2024 and thereafter, cities, towns, and fire districts shall receive

12

reimbursements, as set forth in this section, from state general revenues equal to the amount of lost

13

tax revenue due to the phase out of the excise tax. When the tax is phased out, cities, towns, and

14

fire districts shall receive a permanent distribution of sales tax revenue pursuant to § 44-18-18 in

15

an amount equal to any lost revenue resulting from the excise tax elimination.

16

     (b)(1) In fiscal year years 2024 and thereafter, cities, towns, and fire districts shall receive

17

the following reimbursement amounts:

18

     Barrington $ 5,894,822

19

     Bristol $ 2,905,818

20

     Burrillville $ 5,053,933

21

     Central Falls $ 2,077,974

22

     Charlestown $ 1,020,877

23

     Coventry $ 5,872,396

24

     Cranston $ 22,312,247

25

     Cumberland $ 6,073,469

26

     East Greenwich $ 2,417,332

27

     East Providence $ 11,433,479

28

     Exeter $ 2,241,381

29

     Foster $ 1,652,251

30

     Glocester $ 2,381,941

31

     Hopkinton $ 1,629,259

32

     Jamestown $ 622,793

33

     Johnston $ 10,382,785

34

     Lincoln $ 5,683,015

 

LC004143 - Page 186 of 226

1

     Little Compton $ 366,775

2

     Middletown $ 1,976,448

3

     Narragansett $ 1,831,251

4

     Newport $ 2,223,671

5

     New Shoreham $ 163,298

6

     North Kingstown $ 5,378,818

7

     North Providence $ 9,619,286

8

     North Smithfield $ 4,398,531

9

     Pawtucket $ 16,495,506

10

     Portsmouth $ 2,414,242

11

     Providence $ 34,131,596

12

     Richmond $ 1,448,455

13

     Scituate $ 1,977,127

14

     Smithfield $ 7,098,694

15

     South Kingstown $ 3,930,455

16

     Tiverton $ 1,748,175

17

     Warren $ 2,090,911

18

     Warwick $ 25,246,254

19

     Westerly $ 5,765,523

20

     West Greenwich $ 1,331,725

21

     West Warwick $ 5,673,744

22

     Woonsocket $ 9,324,776

23

     Lime Rock Fire District $ 133,933

24

     Lincoln Fire District $ 208,994

25

     Manville Fire District $ 64,862

26

     Quinnville Fire District $ 13,483

27

     (2) In fiscal year 2024, funds shall be distributed to the cities, towns, and fire districts as

28

follows:

29

     (i) On August 1, 2023, twenty-five percent (25%) of the funds.

30

     (ii) On November 1, 2023, twenty-five percent (25%) of the funds.

31

     (iii) On February 1, 2024, twenty-five percent (25%) of the funds.

32

     (iv) On May 1, 2024, twenty-five percent (25%) of the funds.

33

     The funds shall be distributed to each city, town, and fire district in the same proportion as

34

distributed in fiscal year 2023.

 

LC004143 - Page 187 of 226

1

     (3) For the city of East Providence, the payment schedule is twenty-five percent (25%) on

2

November 1, 2023, twenty-five percent (25%) on February 1, 2024, twenty-five percent (25%) on

3

May 1, 2024, and twenty-five percent (25%) on August 1, 2024.

4

     (4) On any of the payment dates specified in subsections (b)(2)(i) through (b)(2)(iv) or

5

(b)(3) of this section, the director of revenue is authorized to deduct previously made over-

6

payments or add supplemental payments as may be required to bring the reimbursements into full

7

compliance with the requirements of this chapter.

8

     (c) When the tax is phased out to August 1, of the following fiscal year the director of

9

revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of

10

sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to

11

the amount of funds distributed to the cities, towns, and fire districts under this chapter during the

12

fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year

13

following the phase-out received by each city, town, and fire district, calculated to the nearest one-

14

hundredth of one percent (0.01%). The director of the department of revenue shall transmit those

15

calculations to the governor, the speaker of the house, the president of the senate, the chairperson

16

of the house finance committee, the chairperson of the senate finance committee, the house fiscal

17

advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for

18

the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to

19

the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-

20

out and each year thereafter. The cities, towns, and fire districts shall receive that amount of sales

21

tax in the proportions calculated by the director of revenue as that received in the fiscal year

22

following the phase-out.

23

     (d) (c) In fiscal years 2025 and thereafter, twenty-five percent (25%) of the funds shall be

24

distributed to the cities, towns, and fire districts on August 1, 2024, and every August 1 thereafter;

25

twenty-five percent (25%) shall be distributed on November 1, 2024, and every November 1

26

thereafter; twenty-five percent (25%) shall be distributed on February 1, 2025, and every February

27

1 thereafter; and twenty-five percent (25%) shall be distributed on May 1, 2025, and every May 1

28

thereafter.

29

     (e) (d) For the city of East Providence, in fiscal years 2025 and thereafter, twenty-five

30

percent (25%) shall be distributed on November 1, 2024, and every November 1 thereafter, twenty-

31

five percent (25%) shall be distributed on February 1, 2025, and every February 1 thereafter;

32

twenty-five percent (25%) shall be distributed on May 1, 2025, and every May 1 thereafter; and

33

twenty-five percent (25%) of the funds shall be distributed on August 1, 2025, and every August 1

34

thereafter.

 

LC004143 - Page 188 of 226

1

     SECTION 24. Effective January 1, 2025, Sections 46-12-39.1, 46-12-40 and 46-12-41 of

2

the General Laws in Chapter 46-12 entitled “Water Pollution” is hereby amended to read as follows:

3

     46-12-39.1. No discharge awareness and education certificate decal - Required.

4

     (a) Definitions. As used in this section and in conjunction with this chapter, the following

5

terms shall be construed as follows:

6

     (1) “Certification agent” means a marina or boatyard which is capable of installing sewage

7

disposal holding tanks and related equipment; a certified marine sewage pump-out facility,

8

including a mobile facility; other established marine businesses, included, but not limited to, marine

9

surveyors and mobile marine repair facilities, that are experienced in the evaluation, repair and/or

10

installation of boat sewage systems; and local harbor masters and assistant harbor masters. “Marine

11

sanitation device” means either a marine sanitation device-type I, a marine sanitation device-type

12

II, or a marine sanitation device-type III with a holding tank and through-hull fitting that would

13

allow sewage to be discharged overboard.

14

     (b) No person shall operate or moor for more than thirty (30) days, a boat in the waters of

15

the state, that has a permanently installed marine toilet unless such boat displays in a prominent

16

position an approved “no discharge certificate decal.” At the time of registration, a boat owner shall

17

be provided with educational material notifying them that, if the recipient boat has a marine

18

sanitation device, the marine sanitation device must be properly secured in a manner that prevents

19

overboard discharges when operating in Rhode Island waters consistent with R.I. Gen. Laws § 46-

20

12-39.

21

     (c) Subsection 45-12-39.1(b) shall not apply to any vessel carrying a valid certificate of

22

inspection issued by the U.S. Coast Guard pursuant to title 46 of the U.S. Code.

23

     (d) Two (2) no discharge certificate decals, differing in color, shall be made available by

24

the department of environmental management for issuance to boats subject to the requirements of

25

this section.

26

     (1) Decals of one color shall signify that the recipient boat has a marine toilet, in proper

27

working order, which is either a marine sanitation device-type I, a marine sanitation device-type II,

28

or a marine sanitation device-type III with a holding tank and through-hull fitting that would allow

29

sewage to be discharged overboard, but the boat owner or operator had taken the steps necessary

30

to prevent the discharge of sewage into the waters of the state.

31

     (2) Decals of the other color shall signify that the recipient boat either has a marine

32

sanitation device-type III with a holding tank and no through-hull fitting that would allow sewage

33

to be discharged overboard, or no marine toilet at all.

34

     (e) Certification shall remain in effect for forty-eight (48) months after each certification,

 

LC004143 - Page 189 of 226

1

and no additional certification shall be required during that period.

2

     (f) The department of environmental management shall collect and deposit into a separate

3

general revenue account a fee of ten dollars ($10.00) for each certificate to defray the cost of

4

implementation of this section.

5

     (g) Certificate decals may be obtained from any certification agent.

6

     (h) Before a certificate decal may be issued, a certification agent must visually inspect each

7

permanently installed marine toilet on a boat, as well as any associated plumbing or holding tank

8

fixtures, to ascertain whether the boat is in compliance with § 46-12-39. If necessary, the

9

certification agent shall perform a color-dye flush test of each toilet to verify compliance.

10

     (i) For inspections conducted pursuant to this section, certification agents may collect and

11

retain a fee, not to exceed twenty-five dollars ($25.00) for each permanently installed marine toilet

12

aboard each boat. This fee shall be in addition to the minimum ten dollar ($10.00) fee for each

13

decal issued, which certification agents shall collect and forward to the department of

14

environmental management pursuant to subsection (f) above.

15

     46-12-40. Penalty for violations.

16

     (a) Every person in violation of § 46-12-39 or owning, operating or causing to be operated,

17

upon the waters of the state, a boat in violation of the provisions of § 46-12-39 or aiding in so doing,

18

shall for the first offense be punished by a fine of not more than five hundred dollars ($500), or be

19

imprisoned for not more than one year in the adult correctional institutions, or both such fine and

20

imprisonment, and for a second and each subsequent offense shall be fined not more than one

21

thousand dollars ($1,000), or be imprisoned for not more than one year in the adult correctional

22

institutions, or both such fine and imprisonment, in the discretion of the court. If a municipality

23

assists in the prosecution of a violation of § 46-12-39 any fine imposed for that violation shall be

24

paid one-half (½) thereof to the general treasurer of the state and one-half (½) thereof to the

25

treasurer of the town or city where the offense occurred.

26

     (b) Every person in violation of § 46-12-39.1, or owning, operating or causing to be

27

operated, upon the waters of the state, a boat in violation of the provisions of § 46-12-39.1, shall

28

be guilty of a civil violation and subject to a fine of up to one hundred dollars ($100). If a

29

municipality assists in the prosecution of a violation of § 46-12-39.1, any fine imposed for that

30

violation shall be paid one-half (½) thereof to the general treasurer of the state and one-half (½)

31

thereof to the treasurer of the town or city where the offense occurred.

32

     (cb) Notwithstanding any inconsistent provision of law, the municipal court shall have

33

concurrent jurisdiction with the district court to hear and adjudicate violations under this section.

34

     46-12-41. Enforcement.

 

LC004143 - Page 190 of 226

1

     (a) The department of environmental management, harbormasters, assistant harbormasters,

2

police officers authorized to make arrests, and employees of the department of environmental

3

management authorized to enforce the provisions of chapter 22 of this title shall have the authority

4

to enforce the provisions of § 46-12-39 and § 46-12-39.1. In the exercise of enforcing the provisions

5

of § 46-12-39 they shall have the authority to stop and board any vessel subject to this chapter,

6

regardless of whether the vessel is under way, making way, docked, or moored.

7

     (b) Harbormasters and assistant harbormasters are authorized to make periodic color dye

8

flush tests of boats subject to § 46-12-39.1, and may check such boats moored in their jurisdictions

9

for no discharge certificate decals, as required pursuant to § 46-12-39.1 compliance with § 46-12-

10

39.

11

     (c) Municipalities of the state may deny a mooring permit to any boat not in compliance

12

with § 46-12-39.1 46-12-39.

13

     SECTION 25. All sections shall take effect upon passage, except for Sections 14 and 15

14

which shall be effective September 1, 2024, and Sections 6, 16, 17, 18, 19, and 20, which shall be

15

effective October 1, 2024, and Sections 8, 9, 12, 13, 21, 22, and 24, which shall be effective on

16

January 1, 2025.

 

LC004143 - Page 191 of 226

1

ARTICLE 7

2

RELATING TO ECONOMIC DEVELOPMENT

3

     SECTION 1. Sections 42-64.16-2 and 42-64.16-3 of the General Laws in Chapter 64.16

4

entitled “The Innovate Rhode Island Small Business Program” are hereby amended to read as

5

follows:

6

     42-64.16-2. Establishment of matching funds program.

7

     (a) There is established the Rhode Island SBIR/STTR Matching Funds Program to be

8

administered by STAC. In order to foster job creation and economic development in the state,

9

STAC may provide grants to eligible businesses to match funds received by a business as a SBIR

10

or STTR Phase I or II award, and to encourage businesses to apply for further SBIR or STTR

11

awards, and commercialize their technology and research.

12

     (b) Eligibility. In order to be eligible for a grant under this section, a business must satisfy

13

all of the following conditions:

14

     (1) The business must be a for-profit, Rhode Island-based business with fifty (50) or fewer

15

employees. For the purposes of this section, Rhode Island-based business is one that has its

16

principal place of business and at least fifty-one percent (51%) of its employees residing in this

17

state.

18

     (2) The business must have received an SBIR/STTR Phase I award from a participating

19

federal agency in response to a specific federal solicitation. To receive the full Phase I matching

20

grant, the business must also have submitted a final Phase I report, demonstrated that the sponsoring

21

agency has interest in the Phase II proposal, and submitted a Phase II proposal to the agency. To

22

receive the full Phase II matching grant, the business must also have submitted a final Phase II

23

report.

24

     (3) The business must satisfy all federal SBIR/STTR requirements.

25

     (4) The business shall not receive concurrent funding support from other sources that

26

duplicates the purpose of this section.

27

     (5) For a Phase I and II matching grant, the business must certify that at least fifty-one

28

percent (51%) of the research described in the federal SBIR/STTR Phase I, II and any further

29

SBIR/STTR proposals and commercialization will be conducted in this state and that the business

30

will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase I, II any

31

further SBIR/STTR projects and commercialization.

32

     (6) For a Phase I and II matching grant, the business must demonstrate its ability to conduct

33

research in its SBIR/STTR Phase II proposal.

34

     (7) For a Phase III commercialization grant, the business must have completed their Phase

 

LC004143 - Page 192 of 226

1

II SBIR/STTR award and submitted a final Phase II report.

2

     (8) For a Phase III commercialization grant, the business must certify that at least fifty-one

3

percent (51%) of the research described in the Phase III application and any other further

4

SBIR/STTR proposals and commercialization will be conducted in this state and that the business

5

will remain a Rhode Island-based business, as defined by Rhode Island General Law 42-64.16-

6

2(b)(1) for at least five (5) years following award of the Phase III grant.

7

     (c) Phase I and II Matching Grant. STAC may award grants to match the funds received

8

by a business through a SBIR/STTR Phase I or II proposal up to a maximum of one hundred fifty

9

three hundred thousand dollars ($150300,000). Seventy-five percent (75%) of the total grant shall

10

be remitted to the business upon receipt of the SBIR/STTR Phase I or II award and application for

11

funds under this section. Twenty-five percent (25%) of the total grant shall be remitted to the

12

business upon submission by the business of the Phase II application to the funding agency and

13

acceptance of the Phase I or II report by the funding agency. A business may receive only one grant

14

under this section per year. A business may receive only one grant under this section with respect

15

to each federal proposal submission. Over its lifetime, a business may receive a maximum of six

16

(6) awards under this section.

17

     (d) Phase III Commercialization Grant. STAC may award grants of up to $500,000 to

18

an eligible business to support commercialization of the results achieved through SBIR/STTR

19

Phase I and Phase II funding. Grants shall be approved in consultation with the Rhode Island

20

Commerce Corporation. Twenty-five percent (25%) of the total grant funding shall be remitted to

21

the business upon award of the Phase III grant and execution of a grant agreement. Sixty-five

22

percent (65%) of the total grant funding shall be remitted to the business upon request for

23

reimbursement for eligible research and development expenses, as defined by STAC, in connection

24

with the project for which the business received the award. Ten percent (10%) of the total grant

25

funding shall be remitted to the business five (5) years following the date of award of the Phase III

26

grant, provided that the business has remained a Rhode Island-based business, as defined by Rhode

27

Island General Law 42-64.16-2(b)(1) for the duration of the grant period.

28

     (deApplication. A business shall apply, under oath, to STAC for a grant under this

29

section on a form prescribed by STAC that includes at least all of the following:

30

     (1) The name of the business, the form of business organization under which it is operated,

31

and the names and addresses of the principals or management of the business.

32

     (2) For a Phase I or II matching grant, an acknowledgement of receipt of the Phase I or II

33

report and Phase II proposal by the relevant federal agency.

34

     (3) For a Phase III commercialization grant, an acknowledgement of the terms of the grant

 

LC004143 - Page 193 of 226

1

and proof of eligibility, as defined in subsection (b) of this section.

2

     (34) Any other information necessary for STAC to evaluate the application.

3

     42-64.16-3. Establishment of bioscience & engineering internship program.

4

     (a) There is hereby established the Innovate Rhode Island Bioscience & Engineering

5

Internship Program to be administered by STAC. In order to promote workforce development and

6

education in the bioscience and engineering fields and enhance the talent pipeline for Rhode Island

7

businesses engaged in the biosciences and engineering, STAC may reimburse eligible bioscience

8

and engineering companies for eligible internship stipends. The reimbursements shall be paid from

9

the Innovate Rhode Island Small Business Account established in this chapter.

10

     (b) Bioscience and engineering definitions.

11

     (1) Bioscience definition. For the purposes of this section, “bioscience” shall mean

12

advanced and applied sciences that expand the understanding of human physiology and have the

13

potential to lead to medical advances or therapeutic applications.

14

     (2) Engineering definition. For the purposes of this section, “engineering” shall mean the

15

creative application of advanced mathematics and natural sciences to design or develop complex

16

structures, machines, processes, or systems.

17

     (c) Business eligibility. In order to be eligible for reimbursement under this section, a

18

business must satisfy all of the following conditions:

19

     (1) The business must be a for-profit, Rhode Island-based business with fifty (50) or fewer

20

employees. For the purposes of this section, a Rhode Island-based business is one that has its

21

principal place of business and at least fifty-one percent (51%) of its employees in this state.

22

     (2) The business must be primarily engaged in a bioscience or engineering field and must

23

demonstrate its ability to conduct research in bioscience or engineering.

24

     (3) The business must host the internship in Rhode Island.

25

     (4) The business must offer interns a hands-on learning experience and at least one mentor

26

directly overseeing the internship.

27

     (5) Any two or more related businesses that are commonly controlled by any person or

28

entity, directly or indirectly, are limited to reimbursement under this section available for one

29

business only.

30

     (d) Intern eligibility. In order to be an eligible intern under this section, a prospective

31

intern must satisfy all of the following requirements:

32

     (1) The prospective intern must be a Rhode Island resident and must attend a college or

33

university located in Rhode Island.

34

     (2) For students enrolled in community college, the student must be enrolled in an

 

LC004143 - Page 194 of 226

1

Associate’s Degree or Certificate program or completed one within the past year; for students

2

enrolled in four-year college or university, the student must have or will have completed at least

3

sophomore year the semester before the internship, or have graduated within the past year; for

4

graduate students, the student must be enrolled in a Master’s Degree program or received their

5

Master’s Degree within the past year.

6

     (3) The intern cannot be the spouse, child, grandchild, sibling, niece, nephew, or spouse of

7

a child, grandchild, sibling, niece, or nephew of any employee of the business.

8

     (4) The intern cannot participate in more than one internship subsidized under this section

9

in the same calendar year.

10

     (5) The intern cannot participate in more than two internships subsidized under this section,

11

over two calendar years, with the same business.

12

     (e) Reimbursement. STAC may reimburse eligible companies for pay rates up to twelve

13

dollars ($12) per hour the Rhode Island minimum wage, as defined in chapter 12-3 of title 28, for

14

a total reimbursement of no more than three six thousand five hundred dollars ($3,06,500) per

15

eligible intern in a bioscience or engineering internship program. Businesses may seek

16

reimbursement for up to two (2) interns per calendar year. Interns shall be paid directly by the

17

eligible business. Eligible businesses may seek reimbursement under this section by providing

18

certification and proof of payment to STAC.

19

     (f) Business application. A business shall apply, under oath, to STAC to qualify for

20

reimbursement under this section on a form prescribed by STAC that includes at least all of the

21

following:

22

     (1) The name of the business, the form of business organization under which it is operated,

23

and the names and addresses of the principals or management of the business.

24

     (2) Certification that the business meets the requirements for eligibility under this section.

25

     (3) A description of the bioscience or engineering internship program that the business

26

intends to offer.

27

     (4) Any other information necessary for STAC to evaluate the application.

28

     (g) Prospective intern application. A prospective intern shall apply, under oath, to STAC

29

to qualify for an internship under this section on a form prescribed by STAC that includes at least

30

all of the following:

31

     (1) The prospective intern’s name, address, college or university, program of study, year

32

of study at the college or university, and degree of attainment.

33

     (2) Certification that prospective intern meets the requirements for eligibility under this

34

section.

 

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1

     (3) Proof of Rhode Island residency.

2

     (4) Proof of enrollment in a college or university in Rhode Island or proof of having

3

graduated from a college or university in Rhode Island within the past year.

4

     (5) Resume and cover letter.

5

     (6) Any other information necessary for STAC to evaluate the application.

6

     (h) Application process. STAC may receive applications from businesses and prospective

7

interns throughout the calendar year and make determinations relating to eligibility under this

8

section. STAC may make available to eligible businesses the eligible intern applications. Eligible

9

businesses looking to host interns may review applications, interview candidates, and select and

10

hire interns according to their qualifications and the businesses’ needs.

11

     SECTION 2. Section 42-64.20-10 of the General Laws in Chapter 42-64.20 entitled

12

“Rebuild Rhode Island Tax Credit Act” is hereby amended to read as follows:

13

     42-64.20-10. Sunset.

14

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

15

2024.December 31, 2025.

16

     SECTION 3. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled “Rhode

17

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

18

     42-64.21-9. Sunset.

19

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

20

31, 2024.December 31, 2025.

21

     SECTION 4. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled “Tax

22

Stabilization Incentive” is hereby amended to read as follows:

23

     42-64.22-15. Sunset.

24

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

25

31, 2024.December 31, 2025.

26

     SECTION 5. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled “First

27

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

28

     42-64.23-8. Sunset.

29

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

30

2024.December 31, 2025.

31

     SECTION 6. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled “I-195

32

Redevelopment Project Fund Act” is hereby amended as follows:

33

     42-64.24-8. Sunset.

34

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

 

LC004143 - Page 196 of 226

1

to this chapter after December 31, 2024.December 31, 2025.

2

     SECTION 7. Section 42-64.25-14 of the General Laws in Chapter 42-64.24 entitled “Small

3

Business Assistance Program Act” is hereby amended as follows:

4

     42-64.25-14. Sunset.

5

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

6

December 31, 2024.December 31, 2025.

7

     SECTION 8. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled “Stay

8

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

9

     42-64.26-12. Sunset.

10

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

11

2024.December 31, 2025.

12

     SECTION 9. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled “Main

13

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

14

     42-64.27-6. Sunset.

15

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

16

2024.December 31, 2025.

17

     SECTION 10. Sections 42-64.28-2, 42-64.28-3, 42-64.28-4, 42-64.28-5, 42-64.28-6, 42-

18

64.28-7, 42-64.28-9, 42-64.28-10 of the General Laws in Chapter 64.28 entitled "Innovation

19

Initiative" are hereby amended to read as follows:

20

     42-64.28-2. Definitions.

21

As used in this chapter:

22

     (1) “Commerce corporation” means the Rhode Island commerce corporation established

23

pursuant to § 42-64-1 et seq.

24

     (2) “Employee-owned business” shall mean any entity that is a small business and:

25

     (i) Is, in whole or in part, a workers’ cooperative as defined in § 7-6.2-2(5); or

26

     (ii) Has an employee stock ownership plan, as defined in 26 U.S.C. § 4975(e)(7);

27

     (23) “Manufacturer” shall mean any entity that:

28

     (i) Uses any premises within the state primarily for the purpose of transforming raw

29

materials into a finished product for trade through any or all of the following operations: adapting,

30

altering, finishing, making, processing, refining, metalworking, and ornamenting, but shall not

31

include fabricating processes incidental to warehousing or distribution of raw materials, such as

32

alteration of stock for the convenience of a customer; or

33

     (ii) Is described in codes 31-33 of the North American Industry Classification system, as

34

revised from time to time.

 

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1

     (34) “Match” shall mean a funding match, or in kind services provided by a third party.

2

     (45) “Small business” means a business that is resident in Rhode Island, has its business

3

facility located within the state, and employs five hundred (500) or fewer persons.

4

     (56) “Small business manufacturer” shall mean a business that meets the definitions of

5

terms small business and manufacturer as defined herein.

6

     (67) “Targeted industry” means any advanced, promising or otherwise prioritized industry

7

identified in the economic development vision and policy promulgated pursuant to § 42-64.17-1

8

or, until such time as any such economic development vision and policy is promulgated, as

9

identified by the commerce corporation.

10

     42-64.28-3. Programs established.

11

     (a) The Rhode Island commerce corporation shall establish a voucher program and an

12

innovation network program as provided under this chapter. The programs are subject to available

13

appropriations and such other funding as may be dedicated to the programs.

14

     (b) There is established an account in the name of the “innovation initiative fund” (the

15

“fund”) under the control of the commerce corporation to fund the programs.

16

     (1) The fund shall consist of:

17

     (i) Money appropriated in the state budget to the fund;

18

     (ii) Money made available to the fund through federal grants, programs, or private

19

contributions;

20

     (iii) Application or other fees paid to the fund to process applications for awards under

21

this chapter; and

22

     (iv) Any other money made available to the fund.

23

     (c) Voucher program. The commerce corporation is authorized to develop and implement

24

an innovation voucher program to provide financing to small businesses to purchase research and

25

development support or other forms of technical assistance and services from Rhode Island

26

institutions of higher education and other providers and to fund research and development by and

27

for small business manufacturers.

28

     (d) Innovation network program. The commerce corporation is authorized to provide

29

innovation grants to organizations, including nonprofit organizations, for-profit organizations,

30

universities, and co-working space operators that offer technical assistance, space on flexible terms,

31

and access to capital to businesses in advanced or targeted industries, or businesses that are

32

evaluating a transition to become employee-owned businesses, regardless of industry. The

33

commerce corporation shall only issue grants under this subsection when those grants are matched

34

by private-sector or nonprofit partners. The commerce corporation shall establish guidelines for

 

LC004143 - Page 198 of 226

1

appropriate matching criteria under this section, including necessary matching ratios.

2

     (e) Invention incentive program. The commerce corporation is authorized to develop and

3

implement an invention incentive program to provide grants to small businesses and individuals to

4

reduce barriers to filing a patent application. The commerce corporation shall establish guidelines

5

for eligible recipients under this section, including industry, business size, and other criteria.

6

     42-64.28-4. Eligible uses.

7

     (a) Vouchers available under this chapter shall be used for the benefit of small businesses

8

to access technical assistance and other services including, but not limited to: research,

9

technological development, product development, commercialization, market development,

10

technology exploration, and improved business practices that implement strategies to grow

11

business and create operational efficiencies.

12

     (b) Vouchers available under this chapter shall be used to provide funding to finance

13

internal research and development by and for small business manufacturers, including, but not

14

limited to: research, technological development, product development, commercialization, market

15

development, technology exploration, and improved business practices that implement strategies

16

to grow business and create operational efficiencies. Subject to appropriation, the commerce

17

corporation shall reserve an amount not to exceed fifty percent (50%) of the voucher program’s

18

annual appropriation to be made available in fiscal year 2018 for vouchers awarded to small

19

business manufacturers under this subsection.

20

     (c) Matching fund awards shall be used for the benefit of small businesses in industries

21

designated from time to time by the corporation, including without limitation: life science and

22

healthcare, food and agriculture, clean technology and energy efficiency, and cyber security to pay

23

for and access technological assistance, to procure space on flexible terms, and to access capital

24

from organizations, including nonprofit organizations, for-profit organizations, universities, and

25

co-working space businesses. Provided, however, that any business that is evaluating a transition

26

to become an employee-owned business, regardless of industry, shall be an eligible beneficiary of

27

a matching fund award.

28

     (d) Grant awards through the invention incentive program shall be used in the form of

29

reimbursement for allowable expenses incurred, per regulations promulgated by the Commerce

30

Corporation, in connection with the submission of a patent application to the United States Patent

31

and Trademark Office. Reimbursement shall only occur following the submission of a patent

32

application by the eligible recipient. No more than one award per individual shall be allowed.

33

     42-64.28-5. Qualification.

34

     (a) To qualify for a voucher, for an invention incentive grant, or for a matching fund award

 

LC004143 - Page 199 of 226

1

under this chapter, a business or individual must make application to the commerce corporation,

2

and upon selection, shall enter into an agreement with the commerce corporation. The commerce

3

corporation shall have no obligation to issue any voucher, make any award, or grant any benefits

4

under this chapter.

5

     42-64.28-6. Voucher amounts and matching fund awards.

6

     (a) Voucher award amounts to a selected applicant shall be determined by the corporation,

7

to be in the minimum amount of five thousand dollars ($5,000) and the maximum amount of fifty

8

thousand dollars ($50,000), subject to appropriations or other available moneys in the fund.

9

     (b) Matching fund awards shall be awarded to organizations in an amount approved by the

10

corporation, subject to appropriations or other available moneys in the fund.

11

     (c) Invention incentive grant amounts shall not exceed five thousand dollars ($5,000) per

12

awardee, subject to appropriations or other available moneys in the fund.

13

     42-64.28-7. Rules and regulations.

14

     The commerce corporation is hereby authorized to promulgate such rules and regulations

15

as are necessary to fulfill the purposes of this chapter, including the criteria by which voucher,

16

invention incentive grant, and matching fund applications will be judged, awards will be approved,

17

and vendors of services will be approved.

18

     42-64.28-9. Reporting requirements.

19

     The commerce corporation shall submit a report annually, no later than sixty (60) days

20

after the end of the fiscal year to the speaker of the house and the president of the senate detailing:

21

(1) the total amount of innovation vouchers, invention incentive grants, and matching funds

22

awarded; (2) the number of innovation vouchers, invention incentive grants, and matching fund

23

awards approved, (3) the amount of each voucher, invention incentive grant, or matching fund

24

award and a description of services purchased; and (4) such other information as the commerce

25

corporation deems necessary.

26

     42-64.28-10. Sunset.

27

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

28

December 31, 2024.December 31, 2025.

29

     SECTION 11. Section 42-64.31-4 of the General Laws in Chapter 42-64.31 entitled “High

30

School, College, and Employer Partnerships” is hereby amended as follows:

31

     42-64.31-4. Sunset.

32

     No grants shall be authorized pursuant to this chapter after December 31, 2024.December

33

31, 2025.

34

     SECTION 12. Section 42-64.32-6 of the General Laws in Chapter 42-64.32 entitled “Air

 

LC004143 - Page 200 of 226

1

Service Development Fund” is hereby amended as follows:

2

     42-64.32-6. Sunset.

3

     No grants, credits, or incentives shall be authorized or authorized to be reserved pursuant

4

to this chapter after December 31, 2024.December 31, 2025.

5

     SECTION 13. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled “Rhode

6

Island New Qualified Jobs Incentive Act of 2015” is hereby amended as follows:

7

      44-48.3-14. Sunset.

8

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

9

2024.December 31, 2025.

10

     SECTION 14. This act shall take effect upon passage.

 

LC004143 - Page 201 of 226

1

ARTICLE 8

2

RELATING TO EDUCATION

3

     SECTION 1. Sections 16-7.2-3 and 16-7.2-6 of the General Laws in Chapter 16-7.2 entitled

4

"The Education Equity and Property Tax Relief Act" are hereby amended to read as follows:

5

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

6

     (a) Beginning in the 2012 fiscal year, the following foundation education-aid formula shall

7

take effect. The foundation education aid for each district shall be the sum of the core instruction

8

amount in subdivision (a)(1) and the amount to support high-need students in subdivision (a)(2),

9

which shall be multiplied by the district state-share ratio calculated pursuant to § 16-7.2-4 to

10

determine the foundation aid.

11

     (1) The core-instruction amount shall be an amount equal to a statewide, per-pupil core-

12

instruction amount as established by the department of elementary and secondary education,

13

derived from the average of northeast regional expenditure data for the states of Rhode Island,

14

Massachusetts, Connecticut, and New Hampshire from the National Center for Education Statistics

15

(NCES) that will adequately fund the student instructional needs as described in the basic education

16

program and multiplied by the district average daily membership as defined in § 16-7-22.

17

Expenditure data in the following categories: instruction and support services for students,

18

instruction, general administration, school administration, and other support services from the

19

National Public Education Financial Survey, as published by NCES, and enrollment data from the

20

Common Core of Data, also published by NCES, will be used when determining the core-

21

instruction amount. The core-instruction amount will be updated annually. For the purpose of

22

calculating this formula, school districts’ resident average daily membership shall exclude charter

23

school and state-operated school students. Beginning in FY 2025, the increase in the core-

24

instruction amount shall not exceed the average five-year annual percentage change in the

25

consumer price index.

26

     (2) The amount to support high-need students beyond the core-instruction amount shall be

27

determined by multiplying a student success factor of forty percent (40%) by the core instruction

28

per-pupil amount described in subdivision (a)(1) and applying that amount for each resident child

29

whose family income is at or below one hundred eighty-five percent (185%) of federal poverty

30

guidelines, hereinafter referred to as “poverty status.” By October 1, 2022, as part of its budget

31

submission pursuant to § 35-3-4 relative to state fiscal year 2024 and thereafter, the department of

32

elementary and secondary education shall develop and utilize a poverty measure that in the

33

department’s assessment most accurately serves as a proxy for the poverty status referenced in this

34

subsection and does not rely on the administration of school nutrition programs. The department

 

LC004143 - Page 202 of 226

1

shall utilize this measure in calculations pursuant to this subsection related to the application of the

2

student success factor, in calculations pursuant to § 16-7.2-4 related to the calculation of the state

3

share ratio, and in the formulation of estimates pursuant to subsection (b) below. The department

4

may also include any recommendations which seek to mitigate any disruptions associated with the

5

implementation of this new poverty measure or improve the accuracy of its calculation. Beginning

6

with the FY 2024 calculation, students whose family income is at or below one hundred eighty-

7

five percent (185%) of federal poverty guidelines will be determined by participation in the

8

supplemental nutrition assistance program (SNAP). The number of students directly certified

9

through the department of human services shall be multiplied by a factor of 1.6.

10

     (b) The department of elementary and secondary education shall provide an estimate of the

11

foundation education aid cost as part of its budget submission pursuant to § 35-3-4. The estimate

12

shall include the most recent data available as well as an adjustment for average daily membership

13

growth or decline based on the prior year experience.

14

     (c) In addition, the department shall report updated figures based on the average daily

15

membership as of October 1 by December 1.

16

     (d) Local education agencies may set aside a portion of funds received under subsection

17

(a) to expand learning opportunities such as after school and summer programs, full-day

18

kindergarten and/or multiple pathway programs, provided that the basic education program and all

19

other approved programs required in law are funded.

20

     (e) The department of elementary and secondary education shall promulgate such

21

regulations as are necessary to implement fully the purposes of this chapter.

22

     (f)(1) By October 1, 2023, as part of its budget submission pursuant to § 35-3-4 relative to

23

state fiscal year 2025, the department of elementary and secondary education shall evaluate the

24

number of students by district who qualify as multilingual learner (MLL) students and MLL

25

students whose family income is at or below one hundred eighty-five percent (185%) of federal

26

poverty guidelines. The submission shall also include segmentation of these populations by levels

27

as dictated by the WIDA multilingual learner assessment tool used as an objective benchmark for

28

English proficiency. The department shall also prepare and produce expense data sourced from the

29

uniform chart of accounts to recommend funding levels required to support students at the various

30

levels of proficiency as determined by the WIDA assessment tool. Utilizing this information, the

31

department shall recommend a funding solution to meet the needs of multilingual learners; this may

32

include but not be limited to inclusion of MLL needs within the core foundation formula amount

33

through one or multiple weights to distinguish different students of need or through categorical

34

means.

 

LC004143 - Page 203 of 226

1

     (2) By October 1, 2024, as part of its budget submission pursuant to § 35-3-4 relative to

2

state fiscal year 2026, the department of elementary and secondary education shall develop

3

alternatives to identify students whose family income is at or below one hundred eighty-five percent

4

(185%) of federal poverty guidelines through participation in state-administered programs,

5

including, but not limited to, the supplemental nutrition assistance program (SNAP), and RIteCare

6

and other programs that include the collection of required supporting documentation. The

7

department may also include any recommendations that seek to mitigate any disruptions associated

8

with implementation of this new poverty measure or improve the accuracy of its calculation.

9

     (3) The department shall also report with its annual budget request information regarding

10

local contributions to education aid and compliance with §§ 16-7-23 and 16-7-24. The report shall

11

also compare these local contributions to state foundation education aid by community. The

12

department shall also report compliance to each city or town school committee and city or town

13

council.

14

     16-7.2-6. Categorical programs, state funded expenses.

15

     In addition to the foundation education aid provided pursuant to § 16-7.2-3, the permanent

16

foundation education-aid program shall provide direct state funding for:

17

     (a) Excess costs associated with special education students. Excess costs are defined when

18

an individual special education student’s cost shall be deemed to be “extraordinary.” Extraordinary

19

costs are those educational costs that exceed the state-approved threshold based on an amount

20

above four times the core foundation amount (total of core-instruction amount plus student success

21

amount). The department of elementary and secondary education shall prorate the funds available

22

for distribution among those eligible school districts if the total approved costs for which school

23

districts are seeking reimbursement exceed the amount of funding appropriated in any fiscal year;

24

and the department of elementary and secondary education shall also collect data on those

25

educational costs that exceed the state-approved threshold based on an amount above two (2), three

26

(3), and five (5) times the core-foundation amount;

27

     (b) Career and technical education costs to help meet initial investment requirements

28

needed to transform existing, or create new, comprehensive, career and technical education

29

programs and career pathways in critical and emerging industries and to help offset the higher-

30

than-average costs associated with facilities, equipment maintenance and repair, and supplies

31

necessary for maintaining the quality of highly specialized programs that are a priority for the state.

32

The department shall develop criteria for the purpose of allocating any and all career and technical

33

education funds as may be determined by the general assembly on an annual basis. The department

34

of elementary and secondary education shall prorate the funds available for distribution among

 

LC004143 - Page 204 of 226

1

those eligible school districts if the total approved costs for which school districts are seeking

2

reimbursement exceed the amount of funding available in any fiscal year;

3

     (c) Programs to increase access to voluntary, free, high-quality pre-kindergarten programs.

4

The department shall recommend criteria for the purpose of allocating any and all early childhood

5

program funds as may be determined by the general assembly;

6

     (d) Central Falls, Davies, and the Met Center Stabilization Fund is established to ensure

7

that appropriate funding is available to support their students. Additional support for Central Falls

8

is needed due to concerns regarding the city’s capacity to meet the local share of education costs.

9

This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs outside

10

the permanent foundation education-aid formula, including, but not limited to, transportation,

11

facility maintenance, and retiree health benefits shall be shared between the state and the city of

12

Central Falls. The fund shall be annually reviewed to determine the amount of the state and city

13

appropriation. The state’s share of this fund may be supported through a reallocation of current

14

state appropriations to the Central Falls school district. At the end of the transition period defined

15

in § 16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24. Additional

16

support for the Davies and the Met Center is needed due to the costs associated with running a

17

stand-alone high school offering both academic and career and technical coursework. The

18

department shall recommend criteria for the purpose of allocating any and all stabilization funds as

19

may be determined by the general assembly;

20

     (e) Excess costs associated with transporting students to out-of-district non-public schools.

21

This fund will provide state funding for the costs associated with transporting students to out-of-

22

district non-public schools, pursuant to chapter 21.1 of this title. The state will assume the costs of

23

non-public out-of-district transportation for those districts participating in the statewide system.

24

The department of elementary and secondary education shall prorate the funds available for

25

distribution among those eligible school districts if the total approved costs for which school

26

districts are seeking reimbursement exceed the amount of funding available in any fiscal year;

27

     (f) Excess costs associated with transporting students within regional school districts. This

28

fund will provide direct state funding for the excess costs associated with transporting students

29

within regional school districts, established pursuant to chapter 3 of this title. This fund requires

30

that the state and regional school district share equally the student transportation costs net any

31

federal sources of revenue for these expenditures. The department of elementary and secondary

32

education shall prorate the funds available for distribution among those eligible school districts if

33

the total approved costs for which school districts are seeking reimbursement exceed the amount

34

of funding available in any fiscal year;

 

LC004143 - Page 205 of 226

1

     (g) Public school districts that are regionalized shall be eligible for a regionalization bonus

2

as set forth below:

3

     (1) As used herein, the term “regionalized” shall be deemed to refer to a regional school

4

district established under the provisions of chapter 3 of this title, including the Chariho Regional

5

School district;

6

     (2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus

7

shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the

8

regionalization bonus shall commence in the first fiscal year following the establishment of a

9

regionalized school district as set forth in chapter 3 of this title, including the Chariho Regional

10

School District;

11

     (3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the

12

state’s share of the foundation education aid for the regionalized district as calculated pursuant to

13

§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;

14

     (4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the

15

state’s share of the foundation education aid for the regionalized district as calculated pursuant to

16

§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;

17

     (5) The regionalization bonus shall cease in the third fiscal year;

18

     (6) The regionalization bonus for the Chariho regional school district shall be applied to

19

the state share of the permanent foundation education aid for the member towns; and

20

     (7) The department of elementary and secondary education shall prorate the funds available

21

for distribution among those eligible regionalized school districts if the total, approved costs for

22

which regionalized school districts are seeking a regionalization bonus exceed the amount of

23

funding appropriated in any fiscal year;

24

     (h) Additional state support for English learners (EL). The amount to support EL students

25

shall be determined by multiplying an EL factor of fifteen percent (15%)twenty-five percent (25%)

26

by the core-instruction per-pupil amount defined in § 16-7.2-3(a)(1) and applying that amount of

27

additional state support to EL students identified using widely adopted, independent standards and

28

assessments identified by the commissioner. All categorical funds distributed pursuant to this

29

subsection must be used to provide high-quality, research-based services to EL students and

30

managed in accordance with requirements set forth by the commissioner of elementary and

31

secondary education. The department of elementary and secondary education shall collect

32

performance reports from districts and approve the use of funds prior to expenditure. The

33

department of elementary and secondary education shall ensure the funds are aligned to activities

34

that are innovative and expansive and not utilized for activities the district is currently funding;

 

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1

     (i) State support for school resource officers. For purposes of this subsection, a school

2

resource officer (SRO) shall be defined as a career law enforcement officer with sworn authority

3

who is deployed by an employing police department or agency in a community-oriented policing

4

assignment to work in collaboration with one or more schools. School resource officers should have

5

completed at least forty (40) hours of specialized training in school policing, administered by an

6

accredited agency, before being assigned. Beginning in FY 2019, for a period of three (3) years,

7

school districts or municipalities that choose to employ school resource officers shall receive direct

8

state support for costs associated with employing such officers at public middle and high schools.

9

Districts or municipalities shall be reimbursed an amount equal to one-half (½) of the cost of

10

salaries and benefits for the qualifying positions. Funding will be provided for school resource

11

officer positions established on or after July 1, 2018, provided that:

12

     (1) Each school resource officer shall be assigned to one school:

13

     (i) Schools with enrollments below one thousand two hundred (1,200) students shall

14

require one school resource officer;

15

     (ii) Schools with enrollments of one thousand two hundred (1,200) or more students shall

16

require two school resource officers;

17

     (2) School resource officers hired in excess of the requirement noted above shall not be

18

eligible for reimbursement; and

19

     (3) Schools that eliminate existing school resource officer positions and create new

20

positions under this provision shall not be eligible for reimbursement; and

21

     (j) Categorical programs defined in subsections (a) through (g) shall be funded pursuant to

22

the transition plan in § 16-7.2-7.

23

     SECTION 2. Sections 16-8-10 and 16-8-10.1 of the General Laws in Chapter 16-8 entitled

24

“Federal Aid” are hereby amended to read as follows:

25

     16-8-10. Mandatory school lunch programs.

26

     All public elementary and secondary schools shall be required to make type A federally

27

reimbursable lunches available to students attending those schools through the USDA’s National

28

School Lunch Program (NSLP) in accordance with federal regulation as well as rules and

29

regulations adopted from time to time by the department of elementary and secondary education.

30

To the extent that federal, state, and other funds are available, free and reduced price type A

31

reimbursable lunches shall be provided to all students from families that meet the current specific

32

criteria established by federal and state regulations to qualify for free or reduced-price meals. The

33

state of Rhode Island shall provide additional funds to public schools in an amount equal to the

34

difference between the federal reimbursement rate for a free lunch and the federal reimbursement

 

LC004143 - Page 207 of 226

1

rate received for each student eligible for a reduced-price lunch and receiving lunch. The

2

requirement that type A reimbursable lunches be provided shall apply to locally managed school

3

lunch programs, and school lunch programs administered directly by the department of elementary

4

and secondary education or by any other public agency whether using school facilities or a

5

commercial catering service. The department of elementary and secondary education is further

6

authorized to expand the school lunch program to the extent that federal, state, and/or local funds

7

are available by the utilization of one or more food preparation centers for delivery to participating

8

schools for the purpose of providing meals to students on a more economical basis than could be

9

provided by a community acting individually.

10

     16-8-10.1. Mandatory school breakfast programs.

11

     (a) All public elementary and secondary schools shall be required to make a federally

12

reimbursable school breakfasts program available to students attending the those schools through the

13

USDA’s School Breakfast Program (SBP) in accordance with federal regulation as well as. The

14

breakfast meal shall meet any rules and regulations that are adopted by the commissioner. from time

15

to time by the department of elementary and secondary education. To the extent that federal, state,

16

and other funds are available, free reimbursable breakfasts shall be provided to all students from

17

families that meet the current specific criteria established by federal and state regulations to qualify

18

for free or reduced-price meals. The state of Rhode Island shall provide additional funds to public

19

schools in an amount equal to the difference between the federal reimbursement rate received for a

20

free breakfast and the federal reimbursement rate received for each student eligible for a reduced-

21

price breakfast and receiving breakfast.

22

     (b) The state of Rhode Island shall provide school districts a per breakfast subsidy for each

23

breakfast served to students. The general assembly shall annually appropriate some sum and

24

distribute it based on each district’s proportion of the number of breakfasts served in the prior

25

school year relative to the statewide total in the same year. This subsidy shall augment the nonprofit

26

school food service account and be used for expenses incurred in providing nutritious breakfast

27

meals to students.

28

     SECTION 3. This article shall take effect upon passage.

 

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1

ARTICLE 9

2

RELATING TO HEALTH AND HUMAN SERVICES

3

     SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled “Licensing

4

of Healthcare Facilities” is hereby amended to read as follows:

5

     23-17-38.1 Hospitals -- Licensing Fee.

6

(a) There is imposed a hospital licensing fee for state

7

fiscal year 2022 against each hospital in the state. The hospital licensing fee is equal to five and six

8

hundred fifty-six thousandths percent (5.656%) of the net patient-services revenue of every hospital

9

for the hospital’s first fiscal year ending on or after January 1, 2020, except that the license fee for

10

all hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven

11

percent (37%). The discount for Washington County hospitals is subject to approval by the

12

Secretary of the U.S. Department of Health and Human Services of a state plan amendment

13

submitted by the executive office of health and human services for the purpose of pursuing a waiver

14

of the uniformity requirement for the hospital license fee. This licensing fee shall be administered

15

and collected by the tax administrator, division of taxation within the department of revenue, and

16

all the administration, collection, and other provisions of chapter 51 of title 44 shall apply. Every

17

hospital shall pay the licensing fee to the tax administrator on or before July 13, 2022, and payments

18

shall be made by electronic transfer of monies to the general treasurer and deposited to the general

19

fund. Every hospital shall, on or before June 15, 2022, make a return to the tax administrator

20

containing the correct computation of net patient-services revenue for the hospital fiscal year

21

ending September 30, 2020, and the licensing fee due upon that amount. All returns shall be signed

22

by the hospital’s authorized representative, subject to the pains and penalties of perjury.

23

     (b) (a) There is also imposed a hospital licensing fee for state fiscal year 2023 against each

24

hospital in the state. The hospital licensing fee is equal to five and forty-two hundredths percent

25

(5.42%) of the net patient-services revenue of every hospital for the hospital’s first fiscal year

26

ending on or after January 1, 2021, except that the license fee for all hospitals located in Washington

27

County, Rhode Island shall be discounted by thirty-seven percent (37%). The discount for

28

Washington County hospitals is subject to approval by the Secretary of the U.S. Department of

29

Health and Human Services of a state plan amendment submitted by the executive office of health

30

and human services for the purpose of pursuing a waiver of the uniformity requirement for the

31

hospital license fee. This licensing fee shall be administered and collected by the tax administrator,

32

division of taxation within the department of revenue, and all the administration, collection, and

33

other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to

34

the tax administrator on or before June 30, 2023, and payments shall be made by electronic transfer

 

LC004143 - Page 209 of 226

1

of monies to the general treasurer and deposited to the general fund. Every hospital shall, on or

2

before May 25, 2023, make a return to the tax administrator containing the correct computation of

3

net patient-services revenue for the hospital fiscal year ending September 30, 2021, and the

4

licensing fee due upon that amount. All returns shall be signed by the hospital’s authorized

5

representative, subject to the pains and penalties of perjury.

6

     (c) (b) There is also imposed a hospital licensing fee described in subsections (d) (c)

7

through (g) (f) for state fiscal years 2024 and 2025 against net patient-services revenue of every

8

non-government owned hospital as defined herein for the hospital’s first fiscal year ending on or

9

after January 1, 2022. The hospital licensing fee shall have three (3) tiers with differing fees based

10

on inpatient and outpatient net patient-services revenue. The executive office of health and human

11

services, in consultation with the tax administrator, shall identify the hospitals in each tier, subject

12

to the definitions in this section, by July 15, 2023, and shall notify each hospital of its tier by August

13

1, 2023.

14

     (d) (c) Tier 1 is composed of hospitals that do not meet the description of either Tier 2 or

15

Tier 3.

16

     (1) The inpatient hospital licensing fee for Tier 1 is equal to thirteen and twelve hundredths

17

percent (13.12%) of the inpatient net patient-services revenue derived from inpatient net patient-

18

services revenue of every Tier 1 hospital.

19

     (2) The outpatient hospital licensing fee for Tier 1 is equal to thirteen and thirty hundredths

20

percent (13.30%) of the net patient-services revenue derived from outpatient net patient-services

21

revenue of every Tier 1 hospital.

22

     (e) (d) Tier 2 is composed of high Medicaid/uninsured cost hospitals and independent

23

hospitals.

24

     (1) The inpatient hospital licensing fee for Tier 2 is equal to two and sixty-three hundredths

25

percent (2.63%) of the inpatient net patient-services revenue derived from inpatient net patient-

26

services revenue of every Tier 2 hospital.

27

     (2) The outpatient hospital licensing fee for Tier 2 is equal to two and sixty-six hundredths

28

percent (2.66%) of the outpatient net patient-services revenue derived from outpatient net patient-

29

services revenue of every Tier 2 hospital.

30

     (f) (e) Tier 3 is composed of hospitals that are Medicare-designated low-volume hospitals

31

and rehabilitative hospitals.

32

     (1) The inpatient hospital licensing fee for Tier 3 is equal to one and thirty-one hundredths

33

percent (1.31%) of the inpatient net patient-services revenue derived from inpatient net patient-

34

services revenue of every Tier 3 hospital.

 

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1

     (2) The outpatient hospital licensing fee for Tier 3 is equal to one and thirty-three

2

hundredths percent (1.33%) of the outpatient net patient-services revenue derived from outpatient

3

net patient-services revenue of every Tier 3 hospital.

4

     (g) (f) There is also imposed a hospital licensing fee for state fiscal years 2024 and 2025

5

against state-government owned and operated hospitals in the state as defined herein. The hospital

6

licensing fee is equal to five and twenty-five hundredths percent (5.25%) of the net patient-services

7

revenue of every hospital for the hospital’s first fiscal year ending on or after January 1, 2022.

8

     (h) (g) The hospital licensing fee described in subsections (c) (b) through (g) (f) is subject

9

to U.S. Department of Health and Human Services approval of a request to waive the requirement

10

that healthcare-related taxes be imposed uniformly as contained in 42 C.F.R. § 433.68(d).

11

     (i) (h) This hospital licensing fee shall be administered and collected by the tax

12

administrator, division of taxation within the department of revenue, and all the administration,

13

collection, and other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the

14

licensing fee to the tax administrator before June 30 of each fiscal year, and payments shall be made

15

by electronic transfer of monies to the tax administrator and deposited to the general fund. Every

16

hospital shall, on or before August 1, 2023, make a return to the tax administrator containing the

17

correct computation of inpatient and outpatient net patient-services revenue for the hospital fiscal

18

year ending in 2022, and the licensing fee due upon that amount. All returns shall be signed by the

19

hospital’s authorized representative, subject to the pains and penalties of perjury.

20

(j) (i) For purposes of this section the following words and phrases have the following

21

meanings:

22

(1) “Gross patient-services revenue” means the gross revenue related to patient care

23

services.

24

(2) “High Medicaid/uninsured cost hospital” means a hospital for which the hospital’s total

25

uncompensated care, as calculated pursuant to § 40-8.3-2(4), divided by the hospital’s total net

26

patient-services revenues, is equal to six percent (6.0%) or greater.

27

(3) “Hospital” means the actual facilities and buildings in existence in Rhode Island,

28

licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on

29

that license, regardless of changes in licensure status pursuant to chapter 17.14 of this title (hospital

30

conversions) and § 23-17-6(b) (change in effective control), that provides short-term acute inpatient

31

and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness,

32

disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated Medicaid

33

managed care payment rates for a court-approved purchaser that acquires a hospital through

34

receivership, special mastership, or other similar state insolvency proceedings (which court-

 

LC004143 - Page 211 of 226

1

approved purchaser is issued a hospital license after January 1, 2013) shall be based upon the newly

2

negotiated rates between the court-approved purchaser and the health plan, and such rates shall be

3

effective as of the date that the court-approved purchaser and the health plan execute the initial

4

agreement containing the newly negotiated rate. The rate-setting methodology for inpatient hospital

5

payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and 40-8-13.4(b)(2),

6

respectively, shall thereafter apply to negotiated increases for each annual twelve-month (12)

7

period as of July 1 following the completion of the first full year of the court-approved purchaser’s

8

initial Medicaid managed care contract.

9

(4) “Independent hospitals” means a hospital not part of a multi-hospital system.

10

(5) “Inpatient net patient-services revenue” means the charges related to inpatient care

11

services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual

12

allowances.

13

(6) “Medicare-designated low-volume hospital” means a hospital that qualifies under 42

14

C.F.R. 412.101(b)(2) for additional Medicare payments to qualifying hospitals for the higher

15

incremental costs associated with a low volume of discharges.

16

(7) “Net patient-services revenue” means the charges related to patient care services less

17

(i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual allowances.

18

(8) “Non-government owned hospitals” means a hospital not owned and operated by the

19

state of Rhode Island.

20

(9) “Outpatient net patient-services revenue” means the charges related to outpatient care

21

services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual

22

allowances.

23

(10) “Rehabilitative hospital” means Rehabilitation Hospital Center licensed by the Rhode

24

Island department of health.

25

(11) “State-government owned and operated hospitals” means a hospital facility licensed

26

by the Rhode Island department of health, owned and operated by the state of Rhode Island.

27

(k) (j) The tax administrator in consultation with the executive office of health and human

28

services shall make and promulgate any rules, regulations, and procedures not inconsistent with

29

state law and fiscal procedures that he or she deems necessary for the proper administration of this

30

section and to carry out the provisions, policy, and purposes of this section.

31

(l) (k) The licensing fee imposed by subsection (a) shall apply to hospitals as defined herein

32

that are duly licensed on July 1, 2021 2022, and shall be in addition to the inspection fee imposed

33

by § 23-17-38 and to any licensing fees previously imposed in accordance with this section.

34

(m) The licensing fee imposed by subsection (b) shall apply to hospitals as defined herein

 

LC004143 - Page 212 of 226

1

that are duly licensed on July 1, 2022, and shall be in addition to the inspection fee imposed by §

2

23-17-38 and to any licensing fees previously imposed in accordance with this section.

3

(n) (l) The licensing fees imposed by subsections (c) (b) through (g) (f) shall apply to

4

hospitals as defined herein that are duly licensed on July 1, 2023, and shall be in addition to the

5

inspection fee imposed by § 23-17-38 and to any licensing fees previously imposed in accordance

6

with this section.

7

SECTION 2. Section 40-8-19 of the General Laws in Chapter 40-8 entitled “Medical

8

Assistance” is hereby amended to read as follows:

9

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

10

     (a) Rate reform.

11

     (1) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of

12

title 23, and certified to participate in Title XIX of the Social Security Act for services rendered to

13

Medicaid-eligible residents, shall be reasonable and adequate to meet the costs that must be

14

incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. §

15

1396a(a)(13). The executive office of health and human services (“executive office”) shall

16

promulgate or modify the principles of reimbursement for nursing facilities in effect as of July 1,

17

2011, to be consistent with the provisions of this section and Title XIX, 42 U.S.C. § 1396 et seq.,

18

of the Social Security Act.

19

     (2) The executive office shall review the current methodology for providing Medicaid

20

payments to nursing facilities, including other long-term-care services providers, and is authorized

21

to modify the principles of reimbursement to replace the current cost-based methodology rates with

22

rates based on a price-based methodology to be paid to all facilities with recognition of the acuity

23

of patients and the relative Medicaid occupancy, and to include the following elements to be

24

developed by the executive office:

25

     (i) A direct-care rate adjusted for resident acuity;

26

     (ii) An indirect-care and other direct-care rate comprised of a base per diem for all

27

facilities;

28

     (iii) Revision of rates as necessary based on increases in direct and indirect costs beginning

29

October 2024 utilizing data from the most recent finalized year of facility cost report. The per diem

30

rate components deferred in subsections (a)(2)(i) and (a)(2)(ii) of this section shall be adjusted

31

accordingly to reflect changes in direct and indirect care costs since the previous rate review;

32

     (iv) Application of a fair-rental value system;

33

     (v) Application of a pass-through system; and

34

     (vi) Adjustment of rates by the change in a recognized national nursing home inflation

 

LC004143 - Page 213 of 226

1

index to be applied on October 1 of each year, beginning October 1, 2012. This adjustment will not

2

occur on October 1, 2013, October 1, 2014, or October 1, 2015, but will occur on April 1, 2015.

3

The adjustment of rates will also not occur on October 1, 2017, October 1, 2018, October 1, 2019,

4

and October 2022. Effective July 1, 2018, rates paid to nursing facilities from the rates approved

5

by the Centers for Medicare and Medicaid Services and in effect on October 1, 2017, both fee-for-

6

service and managed care, will be increased by one and one-half percent (1.5%) and further

7

increased by one percent (1%) on October 1, 2018, and further increased by one percent (1%) on

8

October 1, 2019. Effective October 1, 2022, rates paid to nursing facilities from the rates approved

9

by the Centers for Medicare and Medicaid Services and in effect on October 1, 2021, both fee-for-

10

service and managed care, will be increased by three percent (3%). In addition to the annual nursing

11

home inflation index adjustment, there shall be a base rate staffing adjustment of one-half percent

12

(0.5%) on October 1, 2021, one percent (1.0%) on October 1, 2022, and one and one-half percent

13

(1.5%) on October 1, 2023. The inflation index shall be applied without regard for the transition

14

factors in subsections (b)(1) and (b)(2). For purposes of October 1, 2016, adjustment only, any rate

15

increase that results from application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii)

16

shall be dedicated to increase compensation for direct-care workers in the following manner: Not

17

less than 85% of this aggregate amount shall be expended to fund an increase in wages, benefits,

18

or related employer costs of direct-care staff of nursing homes. For purposes of this section, direct-

19

care staff shall include registered nurses (RNs), licensed practical nurses (LPNs), certified nursing

20

assistants (CNAs), certified medical technicians, housekeeping staff, laundry staff, dietary staff, or

21

other similar employees providing direct-care services; provided, however, that this definition of

22

direct-care staff shall not include: (i) RNs and LPNs who are classified as “exempt employees”

23

under the federal Fair Labor Standards Act (29 U.S.C. § 201 et seq.); or (ii) CNAs, certified medical

24

technicians, RNs, or LPNs who are contracted, or subcontracted, through a third-party vendor or

25

staffing agency. By July 31, 2017, nursing facilities shall submit to the secretary, or designee, a

26

certification that they have complied with the provisions of this subsection (a)(2)(vi) with respect

27

to the inflation index applied on October 1, 2016. Any facility that does not comply with the terms

28

of such certification shall be subjected to a clawback, paid by the nursing facility to the state, in the

29

amount of increased reimbursement subject to this provision that was not expended in compliance

30

with that certification.

31

     (3) Commencing on October 1, 2021, eighty percent (80%) of any rate increase that results

32

from application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii) of this section shall be

33

dedicated to increase compensation for all eligible direct-care workers in the following manner on

34

October 1, of each year.

 

LC004143 - Page 214 of 226

1

     (i) For purposes of this subsection, compensation increases shall include base salary or

2

hourly wage increases, benefits, other compensation, and associated payroll tax increases for

3

eligible direct-care workers. This application of the inflation index shall apply for Medicaid

4

reimbursement in nursing facilities for both managed care and fee-for-service. For purposes of this

5

subsection, direct-care staff shall include registered nurses (RNs), licensed practical nurses (LPNs),

6

certified nursing assistants (CNAs), certified medication technicians, licensed physical therapists,

7

licensed occupational therapists, licensed speech-language pathologists, mental health workers

8

who are also certified nurse assistants, physical therapist assistants, housekeeping staff, laundry

9

staff, dietary staff or other similar employees providing direct-care services; provided, however

10

that this definition of direct-care staff shall not include:

11

     (A) RNs and LPNs who are classified as “exempt employees” under the federal Fair Labor

12

Standards Act (29 U.S.C. § 201 et seq.); or

13

     (B) CNAs, certified medication technicians, RNs or LPNs who are contracted or

14

subcontracted through a third-party vendor or staffing agency.

15

     (4)(i) By July 31, 2021, and July 31 of each year thereafter, nursing facilities shall submit

16

to the secretary or designee a certification that they have complied with the provisions of subsection

17

(a)(3) of this section with respect to the inflation index applied on October 1. The executive office

18

of health and human services (EOHHS) shall create the certification form nursing facilities must

19

complete with information on how each individual eligible employee’s compensation increased,

20

including information regarding hourly wages prior to the increase and after the compensation

21

increase, hours paid after the compensation increase, and associated increased payroll taxes. A

22

collective bargaining agreement can be used in lieu of the certification form for represented

23

employees. All data reported on the compliance form is subject to review and audit by EOHHS.

24

The audits may include field or desk audits, and facilities may be required to provide additional

25

supporting documents including, but not limited to, payroll records.

26

     (ii) Any facility that does not comply with the terms of certification shall be subjected to a

27

clawback and twenty-five percent (25%) penalty of the unspent or impermissibly spent funds, paid

28

by the nursing facility to the state, in the amount of increased reimbursement subject to this

29

provision that was not expended in compliance with that certification.

30

     (iii) In any calendar year where no inflationary index is applied, eighty percent (80%) of

31

the base rate staffing adjustment in that calendar year pursuant to subsection (a)(2)(vi) of this

32

section shall be dedicated to increase compensation for all eligible direct-care workers in the

33

manner referenced in subsections (a)(3)(i), (a)(3)(i)(A), and (a)(3)(i)(B) of this section.

34

     (b) Transition to full implementation of rate reform.  For no less than four (4) years after

 

LC004143 - Page 215 of 226

1

the initial application of the price-based methodology described in subsection (a)(2) to payment

2

rates, the executive office of health and human services shall implement a transition plan to

3

moderate the impact of the rate reform on individual nursing facilities. The transition shall include

4

the following components:

5

     (1) No nursing facility shall receive reimbursement for direct-care costs that is less than

6

the rate of reimbursement for direct-care costs received under the methodology in effect at the time

7

of passage of this act; for the year beginning October 1, 2017, the reimbursement for direct-care

8

costs under this provision will be phased out in twenty-five-percent (25%) increments each year

9

until October 1, 2021, when the reimbursement will no longer be in effect; and

10

     (2) No facility shall lose or gain more than five dollars ($5.00) in its total, per diem rate the

11

first year of the transition. An adjustment to the per diem loss or gain may be phased out by twenty-

12

five percent (25%) each year; except, however, for the years beginning October 1, 2015, there shall

13

be no adjustment to the per diem gain or loss, but the phase out shall resume thereafter; and

14

     (3) The transition plan and/or period may be modified upon full implementation of facility

15

per diem rate increases for quality of care-related measures. Said modifications shall be submitted

16

in a report to the general assembly at least six (6) months prior to implementation.

17

     (4) Notwithstanding any law to the contrary, for the twelve-month (12) period beginning

18

July 1, 2015, Medicaid payment rates for nursing facilities established pursuant to this section shall

19

not exceed ninety-eight percent (98%) of the rates in effect on April 1, 2015. Consistent with the

20

other provisions of this chapter, nothing in this provision shall require the executive office to restore

21

the rates to those in effect on April 1, 2015, at the end of this twelve-month (12) period.

22

     SECTION 3. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled

23

“Uncompensated Care” are hereby amended to read as follows:

24

     40-8.3-2. Definitions.

25

     As used in this chapter:

26

     (1) “Base year” means, for the purpose of calculating a disproportionate share payment for

27

any fiscal year ending after September 30, 2022 2023, the period from October 1, 2020 2021,

28

through September 30, 2021 2022, and for any fiscal year ending after September 30, 2023 2024,

29

the period from October 1, 2021 2022, through September 30, 2022 2023.

30

     (2) “Medicaid inpatient utilization rate for a hospital” means a fraction (expressed as a

31

percentage), the numerator of which is the hospital’s number of inpatient days during the base year

32

attributable to patients who were eligible for medical assistance during the base year and the

33

denominator of which is the total number of the hospital’s inpatient days in the base year.

34

     (3) “Participating hospital” means any nongovernment and nonpsychiatric hospital that:

 

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1

     (i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base year

2

and shall mean the actual facilities and buildings in existence in Rhode Island, licensed pursuant to

3

§ 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless

4

of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital conversions) and § 23-

5

17-6(b) (change in effective control), that provides short-term, acute inpatient and/or outpatient

6

care to persons who require definitive diagnosis and treatment for injury, illness, disabilities, or

7

pregnancy. Notwithstanding the preceding language, the negotiated Medicaid managed care

8

payment rates for a court-approved purchaser that acquires a hospital through receivership, special

9

mastership, or other similar state insolvency proceedings (which court-approved purchaser is issued

10

a hospital license after January 1, 2013), shall be based upon the newly negotiated rates between

11

the court-approved purchaser and the health plan, and the rates shall be effective as of the date that

12

the court-approved purchaser and the health plan execute the initial agreement containing the newly

13

negotiated rate. The rate-setting methodology for inpatient hospital payments and outpatient

14

hospital payments set forth in §§ 40-8-13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall

15

thereafter apply to negotiated increases for each annual twelve-month (12) period as of July 1

16

following the completion of the first full year of the court-approved purchaser’s initial Medicaid

17

managed care contract;

18

     (ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%)

19

during the base year; and

20

     (iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during

21

the payment year.

22

     (4) “Uncompensated-care costs” means, as to any hospital, the sum of: (i) The cost incurred

23

by the hospital during the base year for inpatient or outpatient services attributable to charity care

24

(free care and bad debts) for which the patient has no health insurance or other third-party coverage

25

less payments, if any, received directly from such patients; and (ii) The cost incurred by the hospital

26

during the base year for inpatient or outpatient services attributable to Medicaid beneficiaries less

27

any Medicaid reimbursement received therefor; multiplied by the uncompensated-care index.; and

28

(iii) the sum of (4)(i) and 4(ii) shall be offset by the estimated hospital’s commercial equivalent

29

rates state directed payment for the current SFY in which the disproportionate share hospital (DSH)

30

payment is made. The sum of (4)(i), (4)(ii), and (4)(iii) shall be multiplied by the uncompensated

31

care index.

32

     (5) “Uncompensated-care index” means the annual percentage increase for hospitals

33

established pursuant to § 27-19-14 [repealed] for each year after the base year, up to and including

34

the payment year; provided, however, that the uncompensated-care index for the payment year

 

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ending September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent (5.38%),

2

and that the uncompensated-care index for the payment year ending September 30, 2008, shall be

3

deemed to be five and forty-seven hundredths percent (5.47%), and that the uncompensated-care

4

index for the payment year ending September 30, 2009, shall be deemed to be five and thirty-eight

5

hundredths percent (5.38%), and that the uncompensated-care index for the payment years ending

6

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

7

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

8

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

9

30, 2023, and September 30, 2024, and September 30, 2025, shall be deemed to be five and thirty

10

hundredths percent (5.30%).

11

     40-8.3-3. Implementation

12

     (a) For federal fiscal year 2022, commencing on October 1, 2021, and ending September

13

30, 2022, the executive office of health and human services shall submit to the Secretary of the

14

United States Department of Health and Human Services a state plan amendment to the Rhode

15

Island Medicaid DSH Plan to provide:

16

     (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of

17

$145.1 million, shall be allocated by the executive office of health and human services to the Pool

18

D component of the DSH Plan; and

19

     (2) That the Pool D allotment shall be distributed among the participating hospitals in direct

20

proportion to the individual participating hospital’s uncompensated-care costs for the base year,

21

inflated by the uncompensated-care index to the total uncompensated-care costs for the base year

22

inflated by the uncompensated-care index for all participating hospitals. The disproportionate share

23

payments shall be made on or before June 30, 2022, and are expressly conditioned upon approval

24

on or before July 5, 2022, by the Secretary of the United States Department of Health and Human

25

Services, or his or her authorized representative, of all Medicaid state plan amendments necessary

26

to secure for the state the benefit of federal financial participation in federal fiscal year 2022 for

27

the disproportionate share payments.

28

     (b) (a) For federal fiscal year 2023, commencing on October 1, 2022, and ending

29

September 30, 2023, the executive office of health and human services shall submit to the Secretary

30

of the United States Department of Health and Human Services a state plan amendment to the

31

Rhode Island Medicaid DSH Plan to provide:

32

     (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of

33

$159.0 million, shall be allocated by the executive office of health and human services to the Pool

34

D component of the DSH Plan; and

 

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     (2) That the Pool D allotment shall be distributed among the participating hospitals in direct

2

proportion to the individual participating hospital’s uncompensated-care costs for the base year,

3

inflated by the uncompensated-care index to the total uncompensated-care costs for the base year

4

inflated by the uncompensated-care index for all participating hospitals. The disproportionate share

5

payments shall be made on or before June 15, 2023, and are expressly conditioned upon approval

6

on or before June 23, 2023, by the Secretary of the United States Department of Health and Human

7

Services, or his or her authorized representative, of all Medicaid state plan amendments necessary

8

to secure for the state the benefit of federal financial participation in federal fiscal year 2023 for

9

the disproportionate share payments.

10

     (c) (b) For federal fiscal year 2024, commencing on October 1, 2023, and ending

11

September 30, 2024, the executive office of health and human services shall submit to the Secretary

12

of the United States Department of Health and Human Services a state plan amendment to the

13

Rhode Island Medicaid DSH Plan to provide:

14

     (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of

15

$14.8 7 million, shall be allocated by the executive office of health and human services to the Pool

16

D component of the DSH Plan; and

17

     (2) That the Pool D allotment shall be distributed among the participating hospitals in direct

18

proportion to the individual participating hospital’s uncompensated-care costs for the base year,

19

inflated by the uncompensated-care index to the total uncompensated-care costs for the base year

20

inflated by the uncompensated-care index for all participating hospitals. The disproportionate share

21

payments shall be made on or before June 15 30, 2024, and are expressly conditioned upon approval

22

on or before June 23, 2024, by the Secretary of the United States Department of Health and Human

23

Services, or his or her authorized representative, of all Medicaid state plan amendments necessary

24

to secure for the state the benefit of federal financial participation in federal fiscal year 2024 for

25

the disproportionate share payments.

26

     (c) For federal fiscal year 2025, commencing on October 1, 2024, and ending September

27

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

28

United States Department of Health and Human Services a state plan amendment to the Rhode

29

Island Medicaid DSH Plan to provide:

30

     (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of

31

$14.7 million, shall be allocated by the executive office of health and human services to the Pool

32

D component of the DSH Plan; and

33

     (2) That the Pool D allotment shall be distributed among the participating hospitals in direct

34

proportion to the individual participating hospital’s uncompensated-care costs for the base year,

 

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inflated by the uncompensated-care index to the total uncompensated-care costs for the base year

2

inflated by the uncompensated-care index of all participating hospitals. The disproportionate share

3

payments shall be made on or before June 30, 2025, and are expressly conditioned upon approval

4

on or before June 23, 2025, by the Secretary of the United States Department of Health and Human

5

Services, or his or her authorized representative, of all Medicaid state plan amendments necessary

6

to secure for the state the benefit of federal financial participating in federal fiscal year 2025 for

7

the disproportionate share payments.

8

     (d) No provision is made pursuant to this chapter for disproportionate-share hospital

9

payments to participating hospitals for uncompensated-care costs related to graduate medical

10

education programs.

11

     (e) The executive office of health and human services is directed, on at least a monthly

12

basis, to collect patient-level uninsured information, including, but not limited to, demographics,

13

services rendered, and reason for uninsured status from all hospitals licensed in Rhode Island.

14

     SECTION 4. Section 40.1-8.5-8 of the General Laws in Chapter 40.1-8.5 entitled

15

“Community Mental Health Services” is hereby amended to read as follows:

16

     40.1-8.5-8. Certified community behavioral health clinics.

17

     (a) The executive office of health and human services is authorized and directed to submit

18

to the Secretary of the United States Department of Health and Human Services a state plan

19

amendment for the purposes of establishing Certified Community Behavioral Health Clinics in

20

accordance with Section 223 of the federal Protecting Access to Medicare Act of 2014.

21

     (b) The executive office of health and human services shall amend its Title XIX State plan

22

pursuant to Title XIX [42 U.S.C. § 1396 et seq.] and Title XXI [42 U.S.C § 1397 et seq.] of the

23

Social Security Act as necessary to cover all required services for persons with mental health and

24

substance use disorders at a certified community behavioral health clinic through a monthly

25

bundled payment methodology that is specific to each organization’s anticipated costs and inclusive

26

of all required services within Section 223 of the federal Protecting Access to Medicare Act of

27

2014. Such certified community behavioral health clinics shall adhere to the federal model,

28

including payment structures and rates. Any change in Federal requirements and/or guidance may

29

result in and necessitate the executive office of health and human services delaying the

30

implementation of such certified clinics.

31

     (c) A certified community behavioral health clinic means any licensed behavioral health

32

organization that meets the federal certification criteria of Section 223 of the Protecting Access to

33

Medicare Act of 2014. The department of behavioral healthcare, developmental disabilities and

34

hospitals shall define additional criteria to certify the clinics including, but not limited to the

 

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provision of, these services:

2

     (1) Outpatient mental health and substance use services;

3

     (2) Twenty-four (24) hour mobile crisis response and hotline services;

4

     (3) Screening, assessment, and diagnosis, including risk assessments;

5

     (4) Person-centered treatment planning;

6

     (5) Primary care screening and monitoring of key indicators of health risks;

7

     (6) Targeted case management;

8

     (7) Psychiatric rehabilitation services;

9

     (8) Peer support and family supports;

10

     (9) Medication-assisted treatment;

11

     (10) Assertive community treatment; and

12

     (11) Community-based mental health care for military service members and veterans.

13

     (d) Subject to the approval from the United States Department of Health and Human

14

Services’ Centers for Medicare and Medicaid Services, the certified community behavioral health

15

clinic model pursuant to this chapter shall be established by February 1, 2024 July 1, 2024, and

16

include any enhanced Medicaid match for required services or populations served.

17

(e) By August 1, 2022, the executive office of health and human services will issue the

18

appropriate purchasing process and vehicle for organizations that want to participate in the Certified

19

Community Behavioral Health Clinic model program.

20

     (f) The organizations will submit a detailed cost report developed by the department of

21

behavioral healthcare, developmental disabilities and hospitals with approval from the executive

22

office of health and human services, that includes the cost for the organization to provide the

23

required services.

24

     (g) The department of behavioral healthcare, developmental disabilities and hospitals, in

25

coordination with the executive office of health and human services, will prepare an analysis of

26

proposals, determine how many behavioral health clinics can be certified in FY 2024 and the costs

27

for each one. Funding for the Certified Behavioral Health Clinics will be included in the FY 2024

28

budget recommended by the Governor.

29

     (h) The executive office of health and human services shall apply for the federal Certified

30

Community Behavioral Health Clinics Demonstration Program if another round of funding

31

becomes available.

32

     SECTION 5. Rhode Island Medicaid Reform Act of 2008 Resolution.

33

     WHEREAS, the General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode

34

Island Medicaid Reform Act of 2008”; and  

 

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     WHEREAS, a legislative enactment is required pursuant to Rhode Island General Laws

2

section 42-12.4-1, et seq.; and 

3

  WHEREAS, Rhode Island General Laws section 42-7.2-5(3)(i) provides that the secretary

4

of the executive office of health and human Services is responsible for the review and coordination

5

of any Medicaid section 1115 demonstration waiver requests and renewals as well as any initiatives

6

and proposals requiring amendments to the Medicaid state plan or category II or III changes as

7

described in the demonstration, “with potential to affect the scope, amount, or duration of publicly-

8

funded health care services, provider payments or reimbursements, or access to or the availability

9

of benefits and services provided by Rhode Island general and public laws”; and 

10

     WHEREAS, in pursuit of a more cost-effective consumer choice system of care that is

11

fiscally sound and sustainable, the secretary requests legislative approval of the following proposals

12

to amend the demonstration; and

13

     WHEREAS, implementation of adjustments may require amendments to the Rhode

14

Island’s Medicaid state plan and/or section 1115 waiver under the terms and conditions of the

15

demonstration. Further, adoption of new or amended rules, regulations and procedures may also

16

be required:

17

     (a) Nursing Facility Payment Technical Correction. The executive office of health and

18

human services will clarify that the “other direct care” component of the nursing facility per diem

19

may be revised as necessary based on increases from the most recently finalized year of the cost

20

report used in the State’s rate review.

21

     (b) DSH Uncompensated Care Calculation. The executive office of health and human

22

services proposes to seek approval from the federal centers for Medicare and Medicaid services to

23

evaluate the impact of the recently enacted hospital directed payments for payments as a percentage

24

of commercial equivalent rates in the calculation of base year uncompensated care used for

25

disproportionate share hospital payments.

26

     (c) Provider Reimbursement Rates. The secretary of the executive office of health and

27

human services is authorized to pursue and implement any waiver amendments, state plan

28

amendments, and/or changes to the applicable department’s rules, regulations, and procedures

29

required to implement updates to Medicaid provider reimbursement rates consisting of rate

30

increases equal to one third (1/3) of the increases recommended in the Social and Human Service

31

Programs Review Final Report produced by the office of the health insurance commissioner

32

pursuant to Rhode Island General Laws section 42-14.5-3(t)(2)(x) and including any revisions to

33

these recommendations noted by the executive office of health and human services in its SFY 25

34

budget submission. except that one hundred (100) percent of the recommended rate increases for

 

LC004143 - Page 222 of 226

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Early Intervention shall be implemented in SFY 25, rather than one third of the increases. This

2

shall further include the recommendation that these rate updates shall be effective on October 1,

3

2024.

4

     (d) Federal Financing Opportunities.  The executive off health and human services

5

proposes that it shall review Medicaid requirements and opportunities under the U.S. Patient

6

Protection and Affordable Care Act of 2010 (PPACA) and various other recently enacted federal

7

laws and pursue any changes in the Rhode Island Medicaid program that promote, increase and

8

enhance service quality, access and cost-effectiveness that may require a Medicaid state plan

9

amendment or amendment under the terms and conditions of Rhode Island’s section 1115 waiver,

10

its successor, or any extension thereof.  Any such actions by the executive office of health and

11

human services shall not have an adverse impact on beneficiaries or cause there to be an increase

12

in expenditures beyond the amount appropriated for state fiscal year 2025.    

13

     Now, therefore, be it:

14

     RESOLVED, that the General Assembly hereby approves the proposals stated above in the

15

recitals; and be it further;

16

     RESOLVED, that the secretary of the executive office of health and human services is

17

authorized to pursue and implement any waiver amendments, state plan amendments, and/or

18

changes to the applicable department’s rules, regulations and procedures approved herein and as

19

authorized by Rhode Island General Laws section 42-12.4; and be it further; 

20

     RESOLVED, that this Joint Resolution shall take effect on July 1, 2024.  

21

     SECTION 6. This article shall take effect upon passage, except for Section 6 which shall

22

take effect as of July 1, 2024.

 

LC004143 - Page 223 of 226

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ARTICLE 10

2

RELATING TO LEASES

3

     SECTION 1. This article consists of a Joint Resolution that is submitted pursuant to Rhode

4

Island General Laws § 37-6-2(d) authorizing various lease agreements for office space and

5

operating space.

6

     SECTION 2. Department of Corrections (249 Roosevelt Avenue, Pawtucket).

7

     WHEREAS, the Department of Corrections currently occupies approximately 4,700 square

8

feet at 249 Roosevelt Avenue in the City of Pawtucket;

9

     WHEREAS, the Department of Corrections currently has a current lease agreement, in full

10

force and effect, with PUI O, Inc., for approximately 4,700 square feet of office space located at

11

249 Roosevelt Avenue, in the City of Pawtucket;

12

     WHEREAS, the existing lease expires on July 31, 2024, and the Department of Corrections

13

wishes to renew this lease for an additional five-year term;

14

     WHEREAS, the State of Rhode Island, acting by and through the Department of

15

Corrections attests to the fact that there are no clauses in the lease agreement with PUI O, Inc., that

16

would interfere with the Department of Corrections lease agreement or use of the facility;

17

     WHEREAS, the leased premises provide a critical location for the offices of the

18

Department of Corrections from which the Department can fulfill its mission;

19

     WHEREAS, the annual base rent in the agreement in the current fiscal year, ending June

20

30, 2024 is $99,734.04;

21

     WHEREAS, the anticipated annual base rent of the agreement in each of the five (5) years

22

of the renewal term will not exceed $106,716.00;

23

     WHEREAS, the payment of the annual base rent will be made from funds available to the

24

Department of Corrections for the payments of rental and lease costs based on annual

25

appropriations made by the General Assembly; and

26

     WHEREAS, the State Properties Committee now respectfully requests the approval of the

27

General Assembly for the lease agreement between the Department of Corrections and PUI O, Inc.,

28

for leased space located at 249 Roosevelt Avenue, Pawtucket; now therefore be it

29

     RESOLVED, that this General Assembly of the State of Rhode Island hereby approves the

30

lease agreement, for a term not to exceed five (5) years and an aggregate base rent not to exceed

31

$533,580.00;

32

     RESOLVED, that this Joint Resolution shall take effect upon passage by the General

33

Assembly;

34

     RESOLVED, that the Secretary of State is hereby authorized and directed to transmit duly

 

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1

certified copies of this resolution to the Governor, the Director of the Department of Corrections,

2

the Director of Administration, the State Budget Officer, and the Chair of the State Properties

3

Committee.

4

     SECTION 3. This article shall take effect upon passage.

 

LC004143 - Page 225 of 226

1

ARTICLE 11

2

RELATING TO EFFECTIVE DATE

3

     SECTION 1. This act shall take effect as of July 1, 2024, except as otherwise provided

4

herein.

5

     SECTION 2. This article shall take effect upon passage.

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