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art.016/6/016/5/016/4/016/3/016/2/026/1

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ARTICLE 16 AS AMENDED

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RELATING TO MUNICIPALITIES

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     SECTION 1. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled “Video

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Lottery Terminal” is hereby amended to read as follows:

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     42-61.2-7. Division of revenue.-- (a) Notwithstanding the provisions of § 42-61-15, the

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allocation of net terminal income derived from video lottery games is as follows:

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     (1) For deposit in the general fund and to the state lottery division fund for administrative

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purposes: Net terminal income not otherwise disbursed in accordance with subdivisions (a)(2) –

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(a)(6) herein;

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     (i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one

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percent (0.19%) up to a maximum of twenty million dollars ($20,000,000) shall be equally

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allocated to the distressed communities as defined in § 45-13-12 provided that no eligible

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community shall receive more than twenty-five percent (25%) of that community's currently

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enacted municipal budget as its share under this specific subsection. Distributions made under

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this specific subsection are supplemental to all other distributions made under any portion of

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general laws § 45-13-12. For the fiscal year ending June 30, 2008 distributions by community

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shall be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be

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made from general appropriations. For the fiscal year ending June 30, 2009, the total state

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distribution shall be the same total amount distributed in the fiscal year ending June 30, 2008 and

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shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total

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state distribution shall be the same total amount distributed in the fiscal year ending June 30,

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2009 and shall be made from general appropriations, provided however that $784,458 of the total

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appropriation shall be distributed equally to each qualifying distressed community. For each of

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the fiscal years ending June 30, 2011, and June 30, 2012, and June 30, 2013 seven hundred

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eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall

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be distributed equally to each qualifying distressed community.

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      (ii) Five one hundredths of one percent (0.05%) up to a maximum of five million dollars

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($5,000,000) shall be appropriated to property tax relief to fully fund the provisions of § 44-33-

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2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum

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amount to the nearest five dollar ($5.00) increment within the allocation until a maximum credit

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of five hundred dollars ($500) is obtained. In no event shall the exemption in any fiscal year be

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less than the prior fiscal year.

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     (iii) One and twenty-two one hundredths of one percent (1.22%) to fund § 44-34.1-1,

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entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998", to the maximum

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amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event

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shall the exemption in any fiscal year be less than the prior fiscal year.

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      (iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent

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(0.10%) to a maximum of ten million dollars ($10,000,000) for supplemental distribution to

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communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of

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general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008

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distributions by community shall be identical to the distributions made in the fiscal year ending

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June 30, 2007 and shall be made from general appropriations. For the fiscal year ending June 30,

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2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter,

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funding shall be determined by appropriation.

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     (2) To the licensed video lottery retailer:

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     (a)(i) Prior to the effective date of the NGJA Master Contract, Newport Jai Ali twenty-six

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percent (26%) minus three hundred eighty four thousand nine hundred ninety-six dollars

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($384,996);

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     (ii) On and after the effective date of the NGJA Master Contract, to the licensed video

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lottery retailer who is a party to the NGJA Master Contract, all sums due and payable under said

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Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars

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($384,996).

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     (b)(i) Prior to the effective date of the UTGR Master Contract, to the present licensed

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video lottery retailer at Lincoln Park which is not a party to the UTGR Master Contract, twenty-

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eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven

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thousand six hundred eighty-seven dollars ($767,687);

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     (ii) On and after the effective date of the UTGR Master Contract, to the licensed video

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lottery retailer who is a party to the UTGR Master Contract, all sums due and payable under said

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Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars

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($767,687).

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     (3)(i) To the technology providers who are not a party to the GTECH Master Contract as

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set forth and referenced in Public Law 2003, Chapter 32, seven percent (7%) of the net terminal

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income of the provider's terminals; in addition thereto, technology providers who provide

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premium or licensed proprietary content or those games that have unique characteristics such as

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3D graphics, unique math/game play features or merchandising elements to video lottery

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terminals may receive incremental compensation, either in the form of a daily fee or as an

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increased percentage, if all of the following criteria are met:

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     (A) A licensed video lottery retailer has requested the placement of premium or licensed

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proprietary content at its licensed video lottery facility;

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     (B) The division of lottery has determined in its sole discretion that the request is likely to

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increase net terminal income or is otherwise important to preserve or enhance the competiveness

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of the licensed video lottery retailer;

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     (C) After approval of the request by the division of lottery, the total number of premium

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or licensed propriety content video lottery terminals does not exceed ten percent (10%) of the

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total number of video lottery terminals authorized at the respective licensed video lottery retailer;

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and

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     (D) All incremental costs are shared between the division and the respective licensed

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video lottery retailer based upon their proportionate allocation of net terminal income. The

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division of lottery is hereby authorized to amend agreements with the licensed video lottery

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retailers, or the technology providers, as applicable, to effect the intent herein.

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     (ii) To contractors who are a party to the Master Contract as set forth and referenced in

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Public Law 2003, Chapter 32, all sums due and payable under said Master Contract;

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     (iii) Notwithstanding paragraphs (i) and (ii) above, there shall be subtracted

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proportionately from the payments to technology providers the sum of six hundred twenty-eight

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thousand seven hundred thirty-seven dollars ($628,737);

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     (4) To the city of Newport one and one hundredth percent (1.01%) of net terminal income

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of authorized machines at Newport Grand except that effective November 9, 2009 until June 30,

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2012, the allocation shall be one and two tenths percent (1.2%) of net terminal income of

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authorized machines at Newport Grand for each week the facility operates video lottery games on

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a twenty-four (24) hour basis for all eligible hours authorized and to the town of Lincoln one and

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twenty-six hundredths percent (1.26%) of net terminal income of authorized machines at Lincoln

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Park except that effective November 9, 2009 until June 30, 2012, the allocation shall be one and

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forty-five hundredths percent (1.45%) of net terminal income of authorized machines at Lincoln

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Park for each week the facility operates video lottery games on a twenty-four (24) hour basis for

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all eligible hours authorized; and

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     (5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net

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terminal income of authorized machines at Lincoln Park up to a maximum of ten million dollars

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($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of a

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Tribal Development Fund to be used for the purpose of encouraging and promoting: home

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ownership and improvement, elderly housing, adult vocational training; health and social

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services; childcare; natural resource protection; and economic development consistent with state

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law. Provided, however, such distribution shall terminate upon the opening of any gaming facility

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in which the Narragansett Indians are entitled to any payments or other incentives; and provided

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further, any monies distributed hereunder shall not be used for, or spent on previously contracted

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debts; and

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     (6) Unclaimed prizes and credits shall remit to the general fund of the state; and

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     (7) Payments into the state's general fund specified in subdivisions (a)(1) and (a)(6) shall

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be made on an estimated monthly basis. Payment shall be made on the tenth day following the

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close of the month except for the last month when payment shall be on the last business day.

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      (b) Notwithstanding the above, the amounts payable by the Division to UTGR related to

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the Marketing Program shall be paid on a frequency agreed by the Division, but no less

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frequently than annually.

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     (c) Notwithstanding anything in this chapter 61.2 of this title 42 to the contrary, the

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Director is authorized to fund the Marketing Program as described above in regard to the First

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Amendment to the UTGR Master Contract.

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     (d) Notwithstanding the above, the amounts payable by the Division to Newport Grand

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related to the Marketing Program shall be paid on a frequency agreed by the Division, but no less

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frequently than annually.

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     (e) Notwithstanding anything in this chapter 61.2 of this title 42 to the contrary, the

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Director is authorized to fund the Marketing Program as described above in regard to the First

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Amendment to the Newport Grand Master Contract.

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     SECTION 2. Section 45-13-12 of the General Laws in Chapter 45-13 entitled “Distressed

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communities relief fund” is hereby amended to read as follows:

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     45-13-12. Distressed communities relief fund. -- (a) There is established a fund to

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provide state assistance to those Rhode Island cities and towns which have the highest property

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tax burdens relative to the wealth of taxpayers.

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     (b) Establishment of indices. Four (4) indices of distress shall be established to determine

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eligibility for the program. Each community shall be ranked by each distress index and any

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community which falls into the lowest twenty percent (20%) of at least three (3) of the four (4)

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indices shall be eligible to receive assistance. The four (4) indices are established as follows:

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     (1) Percent of tax levy to full value of property. This shall be computed by dividing the

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tax levy of each municipality by the full value of property for each municipality. For the 1990-91

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fiscal year, tax levy and full value shall be as of the assessment date December 31, 1986.

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     (2) Per capita income. This shall be the most recent estimate reported by the U.S.

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Department of Commerce, Bureau of the Census.

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     (3) Percent of personal income to full value of property. This shall be computed by

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multiplying the per capita income above by the most recent population estimate as reported by the

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U.S. Department of Commerce, Bureau of the Census, and dividing the result by the full value of

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property.

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     (4) Per capita full value of property. This shall be the full value of property divided by

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the most recent estimate of population by the U.S. Department of Commerce, Bureau of the

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Census.

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     (c) Distribution of funds. Funds shall be distributed to each eligible community on the

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basis of the community's tax levy relative to the total tax levy of all eligible communities. For the

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fiscal year 1990-91, the reference year for the tax levy shall be the assessment date of December

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31, 1988. For each fiscal year thereafter, except for fiscal year 2007-2008, the reference year and

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the fiscal year shall bear the same relationship. For the fiscal year 2007-2008 the reference year

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shall be the same as for the distributions made in fiscal year 2006-2007.

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     Any newly qualifying community shall be paid fifty percent (50%) of current law

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requirements the first year it qualifies. The remaining fifty percent (50%) shall be distributed to

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the other distressed communities proportionately. When any community falls out of the distressed

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community program, it shall receive a one-time payment of fifty percent (50%) of the prior year

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requirement exclusive of any reduction for first year qualification. The community shall be

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considered a distressed community in the fall-out year.

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     (d) Appropriation of funds. The state of Rhode Island shall appropriate funds in the

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annual appropriations act to support this program. For each of the fiscal years ending June 30,

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2011, and June 30, 2012, and June 30, 2013 seven hundred eighty-four thousand four hundred

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fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each

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qualifying distressed community.

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     (e) Payments. Payments shall be made to eligible communities each March equal to one

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half of the appropriated amount and each August equal to one half of the appropriated amount.

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     SECTION 3. Section 45-65-6 of the General Laws in Chapter 45-65 entitled “Retirement

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Security Act for Locally Administered Pension Funds” is hereby amended to read as follows:

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     45-65-6. Certification and notice requirements. -- (1) Every municipality that

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maintains a locally administered plan shall submit its initial annual actuarial valuation study to

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the study commission created herein under § 45-64-8 on or before April 1, 2012, and for each

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plan year ending on or after December 31, 2012, within six (6) months of completing such plan

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year. The initial actuarial experience study shall be submitted to the study commission on or

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before April 1, 2012, and subsequent actuarial experience studies must be submitted to the study

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commission no less frequently than once every three (3) years.

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     (2) In any case in which an actuary certifies that a locally administered plan is in critical

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status for a plan year, the municipality administering such a plan shall, not later than thirty (30)

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business days following the certification, provide notification of the critical status to the

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participants and beneficiaries of the plan and to the general assembly, the governor, the general

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treasurer, the director of revenue, and the auditor general. The notification shall also be posted

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electronically on the general treasurer's website. Within one hundred eighty (180) days of sending

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the critical status notice, the municipality shall submit to the study commission a reasonable

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alternative funding improvement plan to emerge from critical status.

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     (3) The state shall reimburse every municipality for fifty percent (50%) of the cost of

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undertaking its annual actuarial valuation study, which is due on April 1, 2012.

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     (4) Notwithstanding any other law to the contrary, the funding improvement plans and

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actuarial valuation studies submitted pursuant to this section shall be public records.

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     SECTION 4. This article shall take effect upon passage.