2015 -- H 6108

========

LC002331

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

     RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

     Introduced By: Representatives Amore, Melo, and Malik

     Date Introduced: April 17, 2015

     Referred To: House Finance

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor

Fuel Tax" is hereby amended to read as follows:

     31-36-20. Disposition of proceeds. -- (a) Notwithstanding any other provision of law to

the contrary, all moneys paid into the general treasury under the provisions of this chapter or

chapter 37 of this title, and title 46 shall be applied to and held in a separate fund and be

deposited in any depositories that may be selected by the general treasurer to the credit of the

fund, which fund shall be known as the Intermodal Surface Transportation Fund; provided, that in

fiscal year 2004 for the months of July through April six and eighty-five hundredth cents

($0.0685) per gallon of the tax imposed and accruing for the liability under the provisions of §

31-36-7, less refunds and credits, shall be transferred to the Rhode Island public transit authority

as provided under § 39-18-21. For the months of May and June in fiscal year 2004, the allocation

shall be five and five hundredth cents ($0.0505). Thereafter, until fiscal year 2006, the allocation

shall be six and twenty-five hundredth cents ($0.0625). For fiscal years 2006 through FY 2008,

the allocation shall be seven and twenty-five hundredth cents ($0.0725); provided, that

expenditures shall include the costs of a market survey of non-transit users and a management

study of the agency to include the feasibility of moving the Authority into the Department of

Transportation, both to be conducted under the auspices of the state budget officer. The state

budget officer shall hire necessary consultants to perform the studies, and shall direct payment by

the Authority. Both studies shall be transmitted by the Budget Officer to the 2006 session of the

General Assembly, with comments from the Authority. For fiscal year 2009, the allocation shall

be seven and seventy-five hundredth cents ($0.0775), of which one-half cent ($0.005) shall be

derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-

11. For fiscal years 2010 and thereafter, the allocation shall be nine and seventy-five hundredth

cents ($0.0975), of which of one-half cent ($0.005) shall be derived from the one cent ($0.01) per

gallon environmental protection fee pursuant to § 46-12.9-11. One cent ($0.01) per gallon shall

be transferred to allocated for the Elderly/Disabled Transportation Program of the department of

human services; from that one cent ($0.01), twenty-one one hundredths of one cent ($0.0021)

shall be directly transferred to the department of human services, and the remaining seventy-nine

one hundredths of one cent ($0.0079) shall be transferred to the Rhode Island public transit

authority as payment, in part, for the program's expense. Funds transferred to the authority

pursuant to this provision shall not extinguish any obligation the department of human services

and/or the state has in making additional payments to the Rhode Island public transit authority in

support of said program., and the The remaining cents per gallon shall be available for general

revenue as determined by the following schedule:

      (i) For the fiscal year 2000, three and one fourth cents ($0.0325) shall be available for

general revenue.

      (ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for

general revenue.

      (iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general

revenue.

      (iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for

general revenue.

      (v) For the months of July through April in fiscal year 2004, one and four-tenths cents

($0.014) shall be available for general revenue. For the months of May through June in fiscal year

2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter,

until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year

2006 through fiscal year 2009 one cent ($0.01) shall be available for general revenue.

      (2) All deposits and transfers of funds made by the tax administrator under this section,

including those to the Rhode Island public transit authority, the department of human services, the

Rhode Island turnpike and bridge authority, and the general fund, shall be made within twenty-

four (24) hours of receipt or previous deposit of the funds in question.

      (3) Commencing in fiscal year 2004, the Director of the Rhode Island Department of

Transportation is authorized to remit, on a monthly or less frequent basis as shall be determined

LC002331 - Page 2 of 9

by the Director of the Rhode Island Department of Transportation, or his or her designee, or at the

election of the Director of the Rhode Island Department of Transportation, with the approval of

the Director of the Department of Administration, to an indenture trustee, administrator, or other

third party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax

imposed, in order to satisfy debt service payments on aggregate bonds issued pursuant to a Joint

Resolution and Enactment Approving the Financing of Various Department of Transportation

Projects adopted during the 2003 session of the General Assembly, and approved by the

Governor.

      (4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be

transferred to the Rhode Island Turnpike and Bridge Authority to be used for maintenance,

operations, capital expenditures and debt service on any of its projects as defined in chapter 12 of

title 24 in lieu of a toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge

authority is authorized to remit to an indenture trustee, administrator, or other third-party

fiduciary any or all of the foregoing transfers in order to satisfy and/or secure its revenue bonds

and notes and/or debt service payments thereon, including, but not limited to, the bonds and notes

issued pursuant to the Joint Resolution set forth in Section 3 of Article 6 of Chapter 23 of the

Public Laws of 2010. Notwithstanding any other provision of said Joint Resolution, the Rhode

Island turnpike and bridge authority is expressly authorized to issue bonds and notes previously

authorized under said Joint Resolution for the purpose of financing all expenses incurred by it for

the formerly authorized tolling of the Sakonnet River Bridge and the termination thereof.

      (b) Notwithstanding any other provision of law to the contrary, all other funds in the

fund shall be dedicated to the department of transportation, subject to annual appropriation by the

general assembly. The director of transportation shall submit to the general assembly, budget

office and office of the governor annually an accounting of all amounts deposited in and credited

to the fund together with a budget for proposed expenditures for the succeeding fiscal year in

compliance with §§ 35-3-1 and 35-3-4. On order of the director of transportation, the state

controller is authorized and directed to draw his or her orders upon the general treasurer for the

payments of any sum or portion of the sum that may be required from time to time upon receipt

of properly authenticated vouchers.

      (c) At any time the amount of the fund is insufficient to fund the expenditures of the

department of transportation, not to exceed the amount authorized by the general assembly, the

general treasurer is authorized, with the approval of the governor and the director of

administration, in anticipation of the receipts of monies enumerated in § 31-36-20 to advance

sums to the fund, for the purposes specified in § 31-36-20, any funds of the state not specifically

LC002331 - Page 3 of 9

held for any particular purpose. However, all the advances made to the fund shall be returned to

the general fund immediately upon the receipt by the fund of proceeds resulting from the receipt

of monies to the extent of the advances.

     SECTION 2. Sections 39-18-4 and 39-18-22 of the General Laws in Chapter 39-18

entitled "Rhode Island Public Transit Authority" are hereby amended to read as follows:

     39-18-4. Powers and duties of the authority. -- (a) The authority is hereby authorized

and empowered:

      (1) To adopt bylaws for the regulation of its affairs and the conduct of its business;

      (2) To adopt an official seal and alter the seal at pleasure;

      (3) To maintain an office at such place or places within the state as it may designate;

      (4) To sue and be sued in its own name, plead and to be implead; provided, however,

that any and all actions against the authority shall be brought only in the county in which the

principal office of the authority shall be located;

      (5) To acquire, purchase, hold, use, and dispose of any property, real, personal, or mixed,

tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes

of the authority, and, to lease as lessee or lessor any property, real, personal or mixed, or any

interest therein for such term and at such rental as the authority may deem fair and reasonable,

and to sell, transfer, convey, mortgage, or give a security interest in any property, real, personal,

or mixed, tangible or intangible, or any interest therein, at any time acquired by the authority;

      (6) To employ, in its discretion, planning, architectural, and engineering consultants,

attorneys, accountants, construction, financial, transportation, and traffic experts and consultants,

superintendents, managers, and such other officers, employees, and agents as may be necessary in

its judgment, and to fix their compensation;

      (7) (i) To fix from time to time, subject to the provisions of this chapter, schedules and

such rates of fare and charges for service furnished or operated as in its judgment are best adopted

to insure sufficient income to meet the cost of service; provided, however, the authority is not

empowered to operate a passenger vehicle under its control in competition with passenger

vehicles of a private carrier over routes which the private carrier operates pursuant to a certificate

of public convenience and necessity issued to the private carrier by the division of public utilities

and carriers; and provided further that in consideration of payments made through the

elderly/disabled transportation program established by the department of human services pursuant

to § 31-36-20, the authority shall not require any person who meets the means test criteria as

defined by the Rhode Island Department of Elderly Affairs and who is either sixty-five (65) years

of age, or over, or who is disabled to pay any fare or charge for bus rides during off-peak hours,

LC002331 - Page 4 of 9

nor pay more than one-half (1/2) of any fare or charge for bus rides during peak hours; provided,

however, that such exclusion for under no circumstances shall fares or charges shall not apply:

(A) to for special service routes be discounted and (B) during periods and routes of overcrowded

conditions. Any person who is either sixty-five (65) years of age, or over, or who is disabled, and

who meets the means test criteria as heretofore provided, shall not be required to pay any fare or

charge for bus rides during off-peak hours, and any person who is either sixty-five (65) years of

age, or over, or who is disabled, and who does not satisfy the means test criteria as heretofore

provided, shall only be required to pay one-half (1/2) of the fare or charge for bus rides during

off-peak hours, but shall not be eligible for a reduction during peak hours. For the purposes of

this chapter, "overcrowded conditions," "peak hours," "off-peak hours" and "special service

routes" shall be determined annually by the authority. The authority, in conjunction with the

department of human services, shall establish an advisory committee comprised of

seniors/persons with disabilities constituent users of the authority's services to assist in the

implementation of this section within the financial framework of the program's funding

mechanism;

      (ii) Any person who accompanies and is assisting a person with a disability when the

person with a disability uses a wheelchair shall be eligible for the same price exemptions

extended to a person with a disability by subsection (7)(i). The cost to the authority for providing

the service to the elderly shall be paid by the state;

      (iii) Any person who accompanies and is assisting a passenger who is blind or visually

impaired shall be eligible for the same price exemptions extended to the passenger who is blind or

visually impaired by subsection (7)(i). The cost to the authority for providing the service to the

elderly shall be paid by the state;

     (iv) The cost to the authority for providing the services to the elderly/disabled provided

for within this subsection that exceeds the seventy-nine one hundredths of one cent ($0.0079)

provided for in § 31-36-20 shall be paid by the state in addition to those monies already allocated

in the state budget for the authority's operating expenses.

      (iv)(v) The authority shall be authorized and empowered to charge a fare for any

paratransit services required by the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., in

accordance with 49 C.F.R. Part 37.

      (8) To borrow money and to issue bonds of the authority for any of its purposes

including, without limitation, the borrowing of money in anticipation of the issuance of bonds or

the receipt of any operating revenues or other funds or property to be received by the authority,

and the financing of property to be owned by others and used, in whole or substantial part, by the

LC002331 - Page 5 of 9

authority for any of its purposes, all as may from time to time, be authorized by resolution of the

authority; the bonds to contain on their face a statement to the effect that neither the state nor any

municipality or other political subdivision of the state shall be obligated to pay the same or the

interest thereon;

      (9) To enter into management contracts for the operation, management, and supervision

of any or all transit properties under the jurisdiction of the authority, and to make and enter into

all contracts and agreements necessary or incidental to the performance of its duties and the

execution of its powers under this chapter;

      (10) Without limitation of the foregoing, to borrow money from, to receive and accept

grants for or in aid of the purchase, leasing, improving, equipping, furnishing, maintaining,

repairing, constructing, and operating of transit property, and to enter into contracts, leases, or

other transactions with any federal agency; and to receive and accept from the state, from any

municipality, or other political subdivision thereof, and from any other source, aid or

contributions of either money, property, labor, or other things of value, to be held, used and

applied only for the purposes for which the grants and contributions may be made;

      (11) To acquire in the name of the authority, by negotiated purchase or otherwise, on

such terms and conditions and in such manner as it may deem proper, or by the exercise of the

power of condemnation to the extent only and in the manner as provided in this chapter, such

public and private lands, including public parks, playgrounds or reservations, or parts thereof, or

rights therein, rights-of-way, property rights, easements, and interests as it may deem necessary

for carrying out the provisions of this chapter; provided, however, that all public property

damaged in carrying out the powers granted by this chapter shall be restored or repaired and

placed in its original condition as nearly as practicable;

      (12) To contract with any municipality, public or private company or organization,

whereby the authority will receive a subsidy to avoid discontinuance of service, and each

municipality within the state is hereby authorized to make and enter into such contracts and to

make, grant, or give to the authority a subsidy in such amount and for such period of time as it

may deem advisable;

      (13) To operate service to nearby Massachusetts and nearby Connecticut terminals for

the purpose of deboarding Rhode Island passengers at major traffic generating locations for the

benefit of passengers and to board Rhode Islanders for the return trip, provided, however, that the

authority operate closed door in Massachusetts and nearby Connecticut to and from its

destination; and

      (14) To do all things necessary, convenient, or desirable to carry out the purpose of this

LC002331 - Page 6 of 9

chapter.

      (b) To effectuate the purposes of this chapter the authority shall have the following

duties:

      (1) To participate in and contribute to transportation planning initiatives that are relevant

to the purposes of the authority;

      (2) To plan, coordinate, develop, operate, maintain and manage a statewide public transit

system consistent with the purposes of the authority, including plans to meet demands for public

transit where such demand, current or prospective, exceeds supply and/or availability of public

transit services;

      (3) To work with departments, agencies, authorities and corporations of federal, state and

local government, public and private institutions, businesses, non-profit organization, users of the

system and other entities and persons to coordinate public transit services and provide a seamless

network of mobility options.

     39-18-22. State appropriations. -- The general assembly shall appropriate annually a

sum for the financial support of the operating expenses of the Rhode Island public transit

authority from certain proceeds of the motor fuel tax reserved for this purpose pursuant to § 31-

36-20. Monies directly transferred to the authority pursuant to the funding of the elderly/disabled

transportation program of the department of human services as provided for in § 31-36-20 are

payments in part for that program's cost to the authority and do not extinguish any obligation the

department of human services and/or state has under § 39-18-4(7) to make any additional

payments necessary to fund the program. The total amount of state subsidy disbursements in any

fiscal year shall not exceed the appropriation for that year. In the event that dedicated motor fuel

tax revenues received during a fiscal year are not sufficient to support the appropriation for that

year, the difference shall be transferred from the proceeds of the motor fuel tax imposed by

chapter 36 of title 31. Funds appropriated to the authority pursuant to this section shall be

administered by the department of transportation in accordance with procedures established

jointly by the departments of transportation and administration. The authority shall annually

submit to the department of transportation a comprehensive budget request for funds for the

ensuing fiscal year. Prior to the beginning of each fiscal year the authority shall enter into an

agreement with the departments of administration and transportation establishing the conditions

for payment of the available state and federal subsidies. The director of administration is

authorized from time to time to advance funds from the general fund to the Rhode Island public

transit authority to be used for the purpose of this section, in anticipation of transfers from the

revenues reserved pursuant to § 31-36-20, provided that, notwithstanding any payment made by

LC002331 - Page 7 of 9

the state to cover the remainder of the elderly/disabled transportation program not funded by §

31-36-20, the aggregate of all advances less transfers, at any one time, shall not exceed the total

amount of the annual appropriation.

     SECTION 3. This act shall take effect upon passage.

========

LC002331

========

LC002331 - Page 8 of 9

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

***

     This act would change how the elderly/disabled transportation program of the department

of human services' one cent ($0.01) per gallon allocation of the motor fuel tax is distributed, so

that twenty-one one hundredths of one cent ($0.0021) shall be directly transferred to the

department of human services and the remaining seventy-nine one hundredths of one cent

($0.0079) shall be directly transferred to the Rhode Island public transportation authority to pay

for part of the program's expenses.

     This act would take effect upon passage.

========

LC002331

========

LC002331 - Page 9 of 9