2014 -- S 2335

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LC004371

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PUBLIC FINANCE -- RHODE ISLAND TRANSPORTATION

INFRASTRUCTURE FUND -- CREATION -- ALLOCATIONS TO FUND

     

     Introduced By: Senators DiPalma, Felag, Ottiano, Miller, and DaPonte

     Date Introduced: February 12, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 35-4 of the General Laws entitled "State Funds" is hereby amended

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by adding thereto the following sections:

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     35-4-11.1. Rhode Island transportation infrastructure fund -- Creation --

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Allocations to fund. -- (a) There is hereby created a restricted receipt account within the Rhode

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Island intermodal surface transportation fund established in § 35-4-11, to be known as the Rhode

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Island transportation infrastructure fund or transportation infrastructure fund. Unexpended

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balances remaining in the Rhode Island transportation infrastructure fund shall not be subject to

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the ten percent (10%) indirect charge.

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     (b) Commencing with the start of FY 2015, and continuing for five (5) additional

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consecutive fiscal years thereafter until FY 2020, pursuant to the ninety-seven percent (97%)

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limitation on state spending contained in Article IX, Section 16 of the constitution of the state of

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Rhode Island, one quarter of one percent (0.25%) of the state's annual appropriation shall be

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allocated and deposited into the transportation infrastructure fund every fiscal year, until the total

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amount of the annual allocation is equal to one and one-half percent (1.5%) of the state's total

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appropriation, at which point the one and one-half percent (1.5%) rate shall remain in place until

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further action of the general assembly. Such deposit shall be deemed to be in compliance with the

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ninety-seven percent (97%) limitation within said Article IX, Section 16.

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     (c) From FY 2015 through to and including FY 2018, an amount equivalent to the value

 

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of all Rhode Island department of transportation debt, which is being assumed by the state and

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covered through appropriations from the general fund, shall be subtracted from the motor fuel tax

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provided for in chapter 36 of title 31 and deposited into the Rhode Island transportation

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infrastructure fund. Beginning in FY 2019, and annually thereafter, forty-five million dollars

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($45,000,000) of the Rhode Island department of transportation's motor fuel tax allocation which

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was previously used for debt service, shall be deposited into the Rhode Island transportation

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infrastructure fund. This amount shall be in addition to the amount appropriated pursuant to

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subsection (b).

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     (d) Commencing with FY 2015, and ending at the conclusion of FY 2019, a five percent

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(5%) surcharge shall be assessed on all fees collected by the division of motor vehicles. Funds

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collected from such surcharge shall be deposited into the Rhode Island transportation

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infrastructure fund. This amount shall be in addition to the amount appropriated pursuant to

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subsection (b).

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     35-4-11.2. Appropriations to support fund – Use of bonds to initially support fund. -

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- (a) The general assembly shall annually make appropriations from the general fund to the Rhode

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Island transportation infrastructure fund to address any shortfalls in revenue from the reduction or

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elimination of any tolls on any of the four (4) bridges in the East Bay Bridge system, specifically

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the Mt. Hope Bridge, the Newport or Newport-Pell Bridge, the Jamestown Verrazzano Bridge,

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and the Sakonnet River Bridge, as appropriate. Such appropriations shall be in addition to the

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amount appropriated pursuant to § 35-4-11.1.

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     (b) Upon its inception, and up until the Rhode Island transportation infrastructure fund is

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appropriately funded as determined by the general assembly, general obligation bonds shall be

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proposed to the voters to support the fund in accomplishing its objectives. The initial general

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obligation bond proposals shall be submitted to the voters at the general election to be held in

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November, 2014.

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     SECTION 2. Section 35-3-20.1 of the General Laws in Chapter 35-3 entitled "State

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Budget" is hereby amended to read as follows:

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     35-3-20.1. Limitation on state spending. -- (a) For the fiscal year ending June 30, 2009,

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no appropriation, supplemental appropriation, or budget act shall cause the aggregate state

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general revenue appropriations enacted for the fiscal year to exceed ninety-seven and eight tenths

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of one percent (97.8%) of the estimated state general revenues for the fiscal year from all sources,

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including estimated unencumbered general revenues not continued or reappropriated to the new

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fiscal year remaining at the end of the previous fiscal year. Estimated unencumbered general

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revenues are calculated by taking the estimated general revenue cash balance at the end of the

 

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fiscal year less estimated revenue anticipation bonds or notes, estimated general revenue

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encumbrances, estimated continuing general revenue appropriations, and the amount of the

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budget reserve and cash stabilization account at the end of the fiscal year. The amount of the

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general revenue estimate and estimated unencumbered general revenue remaining shall be

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determined by the state controller and approved by the auditor general in conformance with

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accounting procedures currently in use. The excess of any unencumbered general revenue shall be

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determined by subtracting from the actual unencumbered general revenues at the end of any fiscal

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year an amount which together with the latest estimated general revenues is necessary to fund the

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ensuing fiscal year's general revenue budget, including the required estimated general revenue

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supplemental and annual appropriations. Provided further, the applicable percentage shall

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decrease by two-tenths of one percent (.2%) for the succeeding four (4) fiscal years as follows:

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     Fiscal year ending June 30, 2010 97.6%

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     Fiscal year ending June 30, 2011 97.4%

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     Fiscal year ending June 30, 2012 97.2%

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     Fiscal years ending June 30, 2013 and thereafter 97.0%

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      (b) The amount between the applicable percentage in subsection (a) and one hundred

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percent (100%) of the estimated state general fund revenue for any fiscal year as estimated in

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accordance with subsection (a) shall be appropriated in any given fiscal year into the budget

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reserve and cash stabilization account; provided, that for the fiscal year ending June 30, 2009, no

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payment will be made which would increase the total of the budget reserve and cash stabilization

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account to more than three and four-tenths of one percent (3.4%) of only the estimated state

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general fund revenues as set by subsection (a). In the event that the payment to be made into the

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budget reserve and cash stabilization account would increase the amount in the account to more

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than three and four-tenths of one percent (3.4%) of estimated state general revenues, the amount

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shall be transferred to the Rhode Island Capital Plan fund, to be used solely for capital projects.

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Provided further the applicable percentage shall increase by four-tenths of one percent (.4%) for

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the four (4) succeeding fiscal years as follows:

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     Fiscal year ending June 30, 2010 3.8%

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     Fiscal year ending June 30, 2011 4.2%

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     Fiscal year ending June 30, 2012 4.6%

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     Fiscal years ending June 30, 2013 and thereafter 5.0%

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     However, there shall be no expenditures of money under this section without passage of a

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specific appropriation by the general assembly. (c) Within forty-five (45) days after the close of

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any fiscal year, all unencumbered general revenue in the year end surplus account from the fiscal

 

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year shall be transferred to the general fund.

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     (d) Commencing with the start of FY 2015, and continuing for the four (4) additional

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years thereafter until FY 2019, the general assembly shall reallocate the equivalent of one tenth of

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one percent (.1%) of general revenues from the Rhode Island capital plan fund to the Rhode

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Island public transit authority. In each successive fiscal year after FY 2015 and continuing up to

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and including FY 2019, the amount of this reallocation shall be increased by one tenth of one

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percent (.1%) until it reaches the amount of one-half of one percent (0.5%) in FY 2010.

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     SECTION 3. Sections 24-12-2, 24-12-5, 24-12-40.F and 24-12-40.G of the General Laws

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in Chapter 24-12 entitled "Rhode Island Turnpike and Bridge Authority" are hereby amended to

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read as follows:

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     24-12-2. Authority created -- Composition. – (a) There is hereby created a body

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corporate and politic to be known as the "Rhode Island turnpike and bridge authority." The

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authority shall consist of five (5) members, including the director of transportation, who shall be a

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member ex officio, and four (4) members appointed by the governor.

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     (b) Provided, that effective July 1, 2015, the authority shall be transferred and

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reconstituted as a separate division within the Rhode Island department of transportation. In such

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capacity, the authority shall be known as the Rhode Island turnpike and bridge division. On and

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after July 1, 2015, all references in the general laws to the Rhode Island turnpike and bridge

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authority shall be deemed to refer to the Rhode Island turnpike and bridge division within the

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department of transportation. The new division shall be the toll collecting agent of the department

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of transportation. With the exception of the Newport Bridge no tolls shall be collected on any

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bridge without express authorization of the general assembly.

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     (c) The department of transportation shall prepare and deliver a report to the general

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assembly not later than December 31, 2014, setting forth a plan to accomplish the consolidation,

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acquisition, and implementation of this transfer of the Rhode Island turnpike and bridge authority

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to the department of transportation.

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     24-12-5. Power to construct, reconstruct, renovate, acquire, maintain, repair,

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operate or manage projects or additional facilities and to issue bonds. -- In order to facilitate

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vehicular traffic, remove many of the present handicaps and hazards on the congested highways

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in the state, alleviate the barriers caused by large bodies of water, and promote the agricultural

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and industrial development of the state, the Rhode Island turnpike and bridge authority is hereby

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authorized and empowered: to construct the Newport Bridge, the turnpike, any portion thereof or

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any additional facility hereafter authorized to be constructed; to acquire the Mount Hope Bridge,

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to acquire the Sakonnet River Bridge, to acquire the Jamestown Verrazzano Bridge and any

 

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additional facility hereafter authorized to be acquired; to maintain, construct, reconstruct,

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renovate, acquire, repair, operate or manage any project or projects; and to issue bonds of the

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authority as provided in this chapter to finance any project or projects; provided, however, that

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the Mount Hope Bridge shall only be acquired as provided for by section 24-12-40A. Provided

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further, that effective July 1, 2014, the authority of the Rhode Island turnpike and bridge authority

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to issue bonds shall be modified so that all such bonding shall be accomplished by the state only

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through the issuance of general obligation bonds. Debt service on bonds shall be paid for by the

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Rhode Island turnpike and bridge authority through revenue generated from tolls on the Newport

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Pell bridge, and other sources, including annual appropriations from the general fund as needed.

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     24-12-40.F. Title to Sakonnet River Bridge vested in Rhode Island turnpike and

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bridge authority -- Institution of tolls. – (a) All powers, control, and jurisdiction of and title to

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the Sakonnet River Bridge is authorized to be transferred to the Rhode Island turnpike and bridge

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authority. Beginning February 1, 2014, the authority may charge and collect tolls for the use of

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the Sakonnet River Bridge to provide funds sufficient with any other monies available therefor

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for paying the costs of acquiring, leasing, maintaining, repairing and operating, the Jamestown

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Verrazzano Bridge, the Mount Hope Bridge, the Newport Bridge, and the Sakonnet River Bridge,

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the turnpike and additional facilities. Until February 1, 2014, the Authority shall not charge and

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collect tolls in excess of those in place on the Newport Bridge on June 1, 2013. Should any part

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of this section contravene or be inconsistent with any term or provision of the general laws, the

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provisions of this section shall control.

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     (b) Provided, that effective July 1, 2014, title to the Sakonnet River Bridge shall be

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transferred to the department of transportation. Provided further, that effective July 1, 2014, any

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authority to collect tolls on said bridge shall be deemed revoked and voided, and no tolls shall be

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collected on said bridge without express authorization by the general assembly.

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     24-12-40.G. Title to Jamestown Verrazzano Bridge vested in Rhode Island turnpike

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and bridge authority. – (a) All powers, control, and jurisdiction of and title to the Jamestown

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Verrazzano Bridge is authorized to be transferred to the Rhode Island turnpike and bridge

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authority.

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     (b) Provided, that effective July 1, 2014, title to the Jamestown Verrazzano Bridge shall

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be transferred to the department of transportation. Provided further, that effective July 1, 2014,

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any authority to collect tolls on said bridge shall be deemed revoked and voided, and no tolls shall

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be collected on said bridge without express authorization by the general assembly.

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     SECTION 4. Chapter 31-36 of the General Laws entitled "Motor Fuel Tax" is hereby

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amended by adding thereto the following section:

 

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     31-36-24. Joint commission to study motor fuel tax. -- (a) There is hereby created a

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joint legislative commission to monitor, study, report and make recommendations on all areas of

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the motor fuel tax and to seek out ways to replace such tax.

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     (b) The commission consists of twelve (12) members of the general assembly: six (6) of

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whom shall be members of the house of representatives, to include the chair or deputy chair of the

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committee on finance, and five (5) other members, one of whom shall be from the minority party,

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all to be appointed by, and to serve at the discretion of, the speaker of the house of

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representatives; and six (6) of whom shall be from the senate, to include the chair or vice chair of

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the committee on finance, and five (5) other members, one of whom from the minority party, all

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to be appointed by, and to serve at the discretion of, the president of the senate.

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     (c) The commission shall have co-chairpersons, one appointed by the speaker of the

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house of representatives and one by the president of the senate.

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     (d) The commission may review or study any matter related to the motor vehicle fuel tax

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and shall seek ways to devise and implement a replacement for the motor vehicle fuel tax. The

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commission may request and shall receive from any instrumentality of the state. The commission

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shall make recommendations to the speaker of the house and the president of the senate on or

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before March 1, 2015.

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     (e) The commission shall have the power to hold hearings, shall meet at least quarterly,

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may make recommendations to the general assembly, state agencies, private industry or any other

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entity, and shall report to the general assembly on its findings and recommendations as it

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determines appropriate, in addition to the recommendations required pursuant to subsection (d).

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     SECTION 5. Chapter 31-47.4 of the General Laws entitled "Uninsured Motorist

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Identification Database Procedure" is hereby amended by adding thereto the following section:

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     31-47.4-11. Funds to be deposited into transportation infrastructure fund. -- All

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funds and revenue generated as a result of the establishment of the uninsured motorist

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identification database pursuant to this chapter shall be deposited into the Rhode Island

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transportation infrastructure fund established pursuant to § 35-4-11.1. This amount shall be in

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addition to the amount appropriated pursuant to § 35-4-11.1.

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     SECTION 6. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -

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Liability and Computation" is hereby amended by adding thereto the following section:

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     44-18-18.2. Sales and use tax prospective rate changes. -- (a) As to any sales and use

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tax rate imposed which was to be reduced from seven percent (7%) to six and one-half percent

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(6.5%) upon passage of any federal law which authorizes states to require remote sellers to collect

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and remit sales and use taxes, said sales and use taxes shall instead be reduced from seven percent

 

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(7%) to six and six hundred twenty-five one thousandths percent (6.625%), if and when federal

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law authorizes states to require remote sellers to collect and remit sales and use taxes. The six and

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six hundred twenty-five one thousandths percent (6.625%) sales and use tax rate shall take effect

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for tax years beginning on or after the date that the state requires remote sellers to collect and

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remit sales and use taxes.

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     (b) Of the sales and use tax collected under the prospective six and six hundred twenty-

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five one thousandths percent (6.625%) rate, one hundred twenty-five one thousandths percent

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(0.125%) shall be deposited into the Rhode Island transportation infrastructure fund. This one

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hundred twenty-five one thousandths percent (0.125%) allocation shall take effect for tax years

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beginning on or after the date that the state requires remote sellers to collect and remit sales and

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use taxes.

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     (c) For purposes of clarification, this section shall take effect upon passage; provided, the

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adjustment in sales and use tax rates set forth herein are prospective and shall take place as

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provided for in this section, specifically for tax years beginning on or after the date that the state

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requires remote sellers to collect and remit sale and use taxes.

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     SECTION 7. This act shall take effect on July 1, 2014. The remaining sections of this act

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shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE -- RHODE ISLAND TRANSPORTATION

INFRASTRUCTURE FUND -- CREATION -- ALLOCATIONS TO FUND

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     This act would provide a new method to fund transportation and bridge costs in Rhode

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Island. The act would establish the Rhode Island transportation infrastructure fund as a restricted

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receipt account within the Rhode Island intermodal surface transportation fund. The act would

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provide further annual allocations to the transportation infrastructure fund from various sources.

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The act would also transfer the Rhode Island turnpike and bridge authority into a division within

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the Rhode Island department of transportation. The act would also allocate certain sales and use

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tax revenues to the transportation infrastructure fund.

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     This act would take effect on July 1, 2014. The remaining sections of this act would take

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effect upon passage

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