2015 -- H 5006

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LC000031

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - DEPARTMENT OF

TRANSPORTATION

     Introduced By: Representative John J. Lombardi

     Date Introduced: January 08, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 42-13 of the General Laws entitled "Department of Transportation"

is hereby amended by adding thereto the following section:

     42-13-8. Economic hardship relief fund. – (a) There is hereby created as a restricted

receipt account within the general fund, a fund called the "economic hardship relief fund", to be

administered by the director of the department of transportation without liability on the part of the

state beyond the amounts paid into and earned by the fund. The fund shall compensate certain

business owners who experience a decline in business revenue as a direct result of the failure of

any contractor licensed or registered pursuant to this chapter, to complete any road or bridge

construction project in a timely fashion in accordance with any contract entered into with the

department of transportation.

     (b) The economic hardship relief fund shall consist of:

     (1) Any amount of money paid as a penalty by a contractor for the contractor's breach of

any contract or condition of any contract or any department rule or regulation relative to the

amount of time permitted under the contract for the completion of any construction project

authorized by the department.

     (2) Interest earned on any money belonging to the fund.

     (c) The director shall adopt and promulgate, and may amend or repeal, rules and

regulations in order to establish the economic hardship relief fund. In establishing the rules for

payment to business owners affected by the contractor's breach of contract, the director shall be

guided by the following conditions:

     (1) Business owners' demonstration shows that a decline in revenue has occurred as a

result of the past due completion of a road or bridge project.

     (2) The amount of funds available and the degree and amount of loss suffered by each

business.

     (d) Payments pursuant to this chapter shall be made as one-time grants.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - DEPARTMENT OF

TRANSPORTATION

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     This act would create an economic hardship relief fund from penalties imposed on

contractors for past due construction projects to be paid to business owners who can show a

decline in revenue as a result of the past due completion of a road or bridge project.

     This act would take effect upon passage.

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