2015 -- S 0997

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LC002897

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- BRIDGE AND TURNPIKE

AUTHORITY -- TOLLS

     Introduced By: Senators Ruggerio, DiPalma, Paiva Weed, DaPonte, and Goodwin

     Date Introduced: June 16, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 1-2 of the General Laws entitled "Airports and Landing Fields" is

hereby amended by adding thereto the following section:

     1-2-1.2. T.F. Green economic development fund for shippers. -- (a) There is hereby

established an Economic Development Fund for Shippers ("the Fund") under the jurisdiction of

the Rhode Island Airport Corporation which shall be administered by the Rhode Island Airport

Corporation. The purpose of the fund is to provide economic development benefits to the owners

or operators of trucks that frequent T.F. Green State Airport based on the number of trips taken to

and from T.F. Green State Airport.

     (b) The Rhode Island Airport Corporation shall adopt regulations establishing the

requirements for eligibility for the economic development benefits authorized in this section and

the method for calculating the amounts of such benefits to be awarded to any person meeting the

eligibility requirements. The Rhode Island Airport Corporation may adopt such other guidelines,

rules, or regulations as are necessary for the implementation of this chapter.

     (c) Beginning in fiscal year 2017 and annually thereafter, five hundred thousand dollars

($500,000) shall be appropriated from the general fund to the T.F. Green economic development

fund for shippers. That fund shall only be used for the purposes set forth in this section. Any

unspent funds remaining in the fund at the end of a fiscal year, shall be returned to the general

fund.

     (d) In no event shall the total amount of the economic development benefits received

under this section exceed seventy percent (70%) of the total dollar amount of tolls actually paid

by said person, entity or taxpayer in any calendar year pursuant to chapter 13.1 of title 42.

     SECTION 2. Section 24-12-9 of the General Laws in Chapter 24-12 entitled "Rhode

Island Turnpike and Bridge Authority" is hereby amended to read as follows:

     24-12-9. Powers of 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 it 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 be impleaded; provided, however, that

any and all actions at law or in equity against the authority shall be brought only in the county in

which the principal office of the authority shall be located;

      (5) To determine, subject to the approval of the director of transportation, the location

and the design standards of the Newport Bridge, the turnpike and any additional new facility to be

constructed;

      (6) To issue bonds of the authority for any of its purposes and to refund its bonds, all as

provided in this chapter and to issue bonds based on the pledge of monies received in accordance

with the authority provided under § 42-13.1-6;

      (7) To combine for financing purposes the Newport Bridge, the Mount Hope Bridge, the

Sakonnet River Bridge, the Jamestown Verrazzano Bridge, the turnpike and any additional

facility or facilities, or any two (2) or more of such projects;

      (8) To borrow money in anticipation of the issuance of bonds for any of its purposes and

to issue notes, certificates, or other evidences of borrowing in form as may be authorized by

resolution of the authority, the notes, certificates, or other evidence of borrowing to be payable in

the first instance from the proceeds of any bonds issued under the provisions of this chapter and

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

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

interest thereon except from the proceeds of bonds in anticipation of the issuance of which the

notes, certificates, or other evidences of borrowing shall have been issued, or from revenues;

      (9) To fix and revise from time to time, subject to the provisions of this chapter, and to

charge and collect tolls for transit over the turnpike and the several parts or sections thereof, and

for the use of the Newport Bridge, the Mount Hope Bridge, the Sakonnet River Bridge, the

Jamestown Verrazzano Bridge and any additional facility acquired, financed or leased under the

provisions of this chapter;

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      (10) To acquire, hold and dispose of real and personal property in the exercise of its

powers and the performance of its duties;

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

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

condemnation in the manner as provided by this chapter, public or 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 designate the locations, with the approval of the director of transportation, and

establish, limit and control the points of ingress to and egress from the turnpike and any

additional facility as may be necessary or desirable in the judgment of the authority to insure the

proper operation and maintenance thereof, and to prohibit entrance to and exit from any point or

points not so designated;

      (13) To employ, in its discretion, consulting engineers, attorneys, accountants,

construction and financial experts, superintendents, managers, and such other employees and

agents as may be necessary in its judgment, and to fix their compensation;

      (14) To apply for, receive and accept from any federal agency aid and/or grants for or in

aid of the repair, maintenance and/or construction of the turnpike, the Newport Bridge, the

Sakonnet River Bridge, the Mount Hope Bridge, the Jamestown Verrazzano Bridge or any

additional facility, 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;

      (15) To construct grade separations at intersections of the turnpike, the approaches and

highway connections of the Newport Bridge, the Sakonnet River Bridge, the Mount Hope Bridge,

the Jamestown Verrazzano Bridge and any additional facility with public highways, streets, or

other public ways or places, and to change and adjust the lines and grades thereof so as to

accommodate the same to the design of the grade separation; the cost of the grade separations and

any damage incurred in changing and adjusting the lines and grades of the highways, streets,

ways, and places shall be ascertained and paid by the authority as a part of the cost of the project;

      (16) To vacate or change the location of any portion of any public highway, street, or

other public way or place, sewer, pipe, main, conduit, cable, wire, tower, pole, and other

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equipment and appliance of the state or of any municipality or other political subdivision of the

state and to reconstruct the same at such new location as the authority shall deem most favorable

for the project and of substantially the same type and in as good condition as the original

highway, street, way, place, sewer, pipe, main, conduit, cable, wire, tower, pole, equipment, or

appliance, and the cost of the reconstruction and any damage incurred in vacating or changing the

location thereof shall be ascertained and paid by the authority as a part of the cost of the project;

any public highway, street or other public way or place vacated or relocated by the authority shall

be vacated or relocated in the manner provided by law for the vacation or relocation of public

roads, and any damages awarded on account thereof shall be paid by the authority as a part of the

cost of the project;

      (17) The authority shall also have the power to make reasonable regulations, subject to

the approval of the public utility administrator, for the installation, construction, maintenance,

repair, renewal, relocation and removal of tracks, pipes, mains, conduits, cables, wires, towers,

poles, and other equipment and appliances (herein called "public utility facilities") of any public

utility as defined in § 39-1-2, in, on, along, over or under any project. Whenever the authority

shall determine that it is necessary that any public facilities which now are, or hereafter may be,

located in, on, along, over, or under any project should be relocated in the project, or should be

removed from the project, the public utility owning or operating the facilities shall relocate or

remove the facilities in accordance with the order of the authority; provided, however, that the

cost and expenses of the relocation or removal, including the cost of installing the facilities in a

new location, or new locations, and the cost of any lands, or any rights or interests in lands, and

any other rights acquired to accomplish the relocation or removal, less the cost of any lands or

any rights or interests in lands of any other rights of the public utility paid to the public utility in

connection with the relocation or removal of the property, shall be ascertained and paid by the

authority as a part of the cost of the project. In case of any relocation or removal of facilities the

public utility owning or operating the facilities, its successors or assigns, may maintain and

operate the facilities, with the necessary appurtenances, in the new location or new locations, for

as long a period, and upon the same terms and conditions, as it had the right to maintain and

operate the facilities in their former location or locations;

      (18) To make reasonable regulations and to grant easements for the installation,

construction, maintenance, repair, renewal, relocation, and removal of pipelines, other equipment,

and appliances of any corporation or person owning or operating pipelines in, on, along, over, or

under the turnpike, whenever the authority shall determine that it is necessary that any facilities

which now are, or hereafter may be located in, on, along, over or under the turnpike should be

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relocated in the turnpike, or should be removed from the turnpike, the corporation or person

owning or operating the facilities shall relocate or remove the facilities in accordance with the

order of the authority; provided, however, that the cost and expense of the relocation or removal,

including the cost of installing the facilities in a new location, or new locations, and the cost of

any lands, or any rights or interests in lands, and any other rights acquired to accomplish the

relocation or removal, less the cost of any lands or any rights or interests in lands or any other

rights of any corporation or person paid to any corporation or person in connection with the

relocation or removal of the property, shall be ascertained and paid by the authority as a part of

the cost of the project. In case of any relocation or removal of facilities the corporation or person

owning or operating the facilities, its successors or assigns, may maintain and operate the

facilities, with the necessary appurtenances, in the new location or new locations, for as long a

period, and upon the same terms and conditions, as it had the right to maintain and operate the

facilities in their former location or locations;

      (19) To enter upon any lands, waters, and premises for the purpose of making such

surveys, soundings, borings, and examinations as the authority may deem necessary or

convenient for its purposes, and the entry shall not be deemed a trespass, nor shall an entry for

such purposes be deemed an entry under any condemnation proceedings; provided, however, the

authority shall pay any actual damage resulting to the lands, water, and premises as a result of the

entry and activities as a part of the cost of the project;

      (20) To enter into contracts or agreements with any board, commission, public

instrumentality of another state or the federal government or with any political subdivision of

another state relating to the connection or connections to be established between the turnpike or

any additional facility with any public highway or turnpike now in existence or hereafter to be

constructed in another state, and with respect to the construction, maintenance and operation of

interstate turnpikes or expressways;

      (21) To enter into contracts with the department of transportation with respect to the

construction, reconstruction, renovation, acquisition, maintenance, repair, operation or

management of any project and with the Rhode Island state police with respect to the policing of

any project;

      (22) 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; and

      (23) To do all other acts and things necessary or convenient to carry out the powers

expressly granted in this chapter.

      (24) To grant and/or contract through the transfer of funds of the authority to the

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department of transportation for the construction, reconstruction, acquisition, maintenance, repair,

operation or management by the department of transportation of any project or projects

authorized by this chapter, and the department of transportation is authorized to accept any such

grant or transfer of funds.

      (b) Provided, the authority in carrying out the provisions of this section shall hold public

hearings prior to the finalization of any specifications or the awarding of any contracts for any

project.

     (c) The authority is authorized to enter into contracts with the state or any department of

the state to operate and/or manage toll facilities on state roads or bridges not owned, leased by or

under the control of the authority, and to collect tolls from such facilities on behalf of the

department of transportation, provided such tolls shall be set by the state acting through the

department of transportation pursuant to chapter 13.1 of title 42 and to pledge such tolls and/or

any loan or other payments from the department of transportation pursuant to any bond or note

indenture to secure such bonds and notes issued pursuant to chapter 13.1 of title 42.

     (d) Any pledge by the authority of tolls or other revenues, including payments due to the

authority under any loan agreement with the department of transportation, shall be valid and

binding at the time such pledge is made. Such tolls and other revenues so pledged and then or

thereafter received by the authority shall immediately be subject to the lien of such pledge

without any physical delivery thereof or further act. The lien of any such pledge shall be valid and

binding as against all parties having claims of any kind against the authority, regardless of

whether such parties have notice of the lien. Notwithstanding any other provision to the contrary,

the resolution of the authority or any other instrument by which a pledge is created need not be

recorded or filed to perfect such pledge.

     SECTION 3. Chapter 31-36 of the General Laws entitled "Motor Fuel Tax" is hereby

amended by adding thereto the following section:

     31-36-24. Motor fuel tax rebate program for large commercial trucks. -- (a) The

division of taxation shall offer a rebate program for motor fuel tax paid or apportioned to this

state for large commercial trucks. For the purpose of this section, large commercial trucks shall

be defined pursuant to the Federal Highway Administration vehicle classification schedule as any

vehicle from Class 8 up to and including Class 13.

     (b) The amount of the rebate paid to a person or entity for motor fuel tax paid or

apportioned to this state shall be no greater than the actual amount of the motor fuel tax paid or

apportioned to this state by said person or entity in any calendar year.

     (c) To be eligible for a rebate under this section, a person or entity shall complete and

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submit an application for the rebate on the forms prescribed by the tax administrator.

     (d) In no event shall the total amount of: (1) The rebates paid to any person or entity

under this section and § 44-3-65 plus (2) The tax credits applied to any taxpayer under § 44-11-46

and the tax credits for vehicle registration fees under § 44-30-2.6 plus (3) The economic

development benefits received under §§ 1-2-1.2 and 42-64.10-16, exceed thirteen million five

hundred thousand dollars ($13,500,000).

     (e) The tax administrator shall promulgate rules and regulations to implement the

provisions of this section.

     SECTION 4. Section 31-41.1-7 of the General Laws in Chapter 31-41.1 entitled

"Adjudication of Traffic Offenses" is hereby amended to read as follows:

     31-41.1-7. Application for dismissal based on good driving record. -- (a) Any person

who has had a motor vehicle operator's license for more than three (3) years, and who has been

issued traffic violations which are his or her first violations within the preceding three (3) years,

may request a hearing seeking a dismissal of the violations based upon the operator's good

driving record.

      (b) Upon submission of proper proof that the operator has not been issued any other

traffic violation within the past three (3) years, the charge shall, except for good cause shown or

as otherwise provided by law, be dismissed based upon a good driving record; provided, that the

operator pay a thirty-five dollar ($35.00) administrative fee for court costs associated with the

dismissal. Additionally, beginning July 1, 2014, there shall be imposed a twenty-five dollar

($25.00) surcharge on all dismissals based upon a good driving record to be deposited into the

Rhode Island highway maintenance account. Beginning July 1, 2017, the twenty-five dollar

($25.00) surcharge on all dismissals based upon a good driving record shall be deposited into the

state general fund.

      (c) The traffic tribunal may not dismiss a charge pursuant to this section after six (6)

months from the date of disposition. For purposes of this section, a parking ticket shall not

constitute a prior violation.

      (d) The following violations shall not be dismissed pursuant to this statute:

      (1) Any violation within the original jurisdiction of superior or district court;

      (2) A refusal to submit to a chemical test of breath, blood or urine pursuant to § 31-27-

2.1;

      (3) Any violation involving a school bus;

      (4) Any violation involving an accident where there has been property damage or

personal injury;

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      (5) Any speeding violation in excess of fourteen miles per hour (14 m.p.h.) above the

posted speed limit;

      (6) Any violation involving child restraints in motor vehicles pursuant to § 31-22-22;

      (7) Any violation committed by a holder of a commercial license as defined in § 31-

10.3-3 or any violation committed in a commercial motor vehicle as defined in § 31-10.3-3 by an

operator who does not hold a commercial license.

      (e) If the charge is dismissed pursuant to this section, records of the dismissal shall be

maintained for a period of three (3) years.

      (f) The judge or magistrate shall have the discretion to waive court costs and fees when

dismissing a violation pursuant to this section, with the exception of the mandatory thirty-five

dollars ($35.00) administrative fee and the twenty-five dollar ($25.00) surcharge provided for in §

31-41.1-7(b).

     SECTION 5. Section 39-18.1-4 of the General Laws in Chapter 39-18.1 entitled

"Transportation Investment and Debt Reduction Act of 2011" is hereby amended to read as

follows:

     39-18.1-4. Rhode Island highway maintenance account created. -- (a) There is hereby

created a special account in the intermodal surface transportation fund as established in section

31-36-20 that is to be known as the Rhode Island highway maintenance account. (b) The fund

shall consist of all those moneys which the state may from time to time direct to the fund,

including, not necessarily limited to, moneys derived from the following sources: (1) There is

imposed a surcharge of thirty dollars ($30.00) per vehicle or truck, other than those with specific

registrations set forth below in subsection (b)(1)(i). Such surcharge shall be paid by each vehicle

or truck owner in order to register that owner's vehicle or truck and upon each subsequent

biennial registration. This surcharge shall be phased in at the rate of ten dollars ($10.00) each

year. The total surcharge will be ten dollars ($10.00) from July 1, 2013 through June 30, 2014,

twenty dollars ($20.00) from July 1, 2014 through June 30, 2015, and thirty dollars ($30.00) from

July 1, 2015 through June 30, 2016 and each year thereafter. (i) For owners of vehicles or trucks

with the following plate types, the surcharge shall be as set forth below and shall be paid in full in

order to register the vehicle or truck and upon each subsequent renewal:

     Plate Type Surcharge

     Antique $5.00

     Farm $10.00

     Motorcycle $13.00

      (ii) For owners of trailers, the surcharge shall be one-half (1/2) of the biennial

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registration amount and shall be paid in full in order to register the trailer and upon each

subsequent renewal. (2) There is imposed a surcharge of fifteen dollars ($15.00) per vehicle or

truck, other than those with specific registrations set forth in subsection (b)(2)(i) below, for those

vehicles or trucks subject to annual registration, to be paid annually by each vehicle or truck

owner in order to register that owner's vehicle, trailer or truck and upon each subsequent annual

registration. This surcharge will be phased in at the rate of five dollars ($5.00) each year. The

total surcharge will be five dollars ($5.00) from July 1, 2013 through June 30, 2014, ten dollars

($10.00) from July 1, 2014 through June 30, 2015, and fifteen dollars ($15.00) from July 1, 2015

through June 30, 2016 and each year thereafter. (i) For registrations of the following plate types,

the surcharge shall be as set forth below and shall be paid in full in order to register the plate, and

upon each subsequent renewal:

     Plate Type Surcharge

     Boat Dealer $6.25

     Cycle Dealer $6.25

     In-transit $5.00

     Manufacturer $5.00

     New Car Dealer $5.00

     Used Car Dealer $5.00

     Racer Tow $5.00

     Transporter $5.00

     Bailee $5.00

      (ii) For owners of trailers, the surcharge shall be one-half (1/2) of the annual registration

amount and shall be paid in full in order to register the trailer and upon each subsequent renewal.

     (iii) For owners of school buses, the surcharge will be phased in at the rate of six dollars

and twenty-five cents ($6.25) each year. The total surcharge will be six dollars and twenty-five

cents ($6.25) from July 1, 2013 through June 30, 2014 and twelve dollars and fifty cents ($12.50)

from July 1, 2014 through June 30, 2015 and each year thereafter.

     (3) There is imposed a surcharge of thirty dollars ($30.00) per license to operate a motor

vehicle to be paid every five (5) years by each licensed operator of a motor vehicle. This

surcharge will be phased in at the rate of ten dollars ($10.00) each year. The total surcharge will

be ten dollars ($10.00) from July 1, 2013 through June 30, 2014, twenty dollars ($20.00) from

July 1, 2014 through June 30, 2015, and thirty dollars ($30.00) from July 1, 2015 through June

30, 2016 and each year thereafter. In the event that a license is issued or renewed for a period of

less than five (5) years, the surcharge will be prorated according to the period of time the license

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will be valid.

     (c) All funds collected pursuant to this section shall be deposited in the Rhode Island

highway maintenance account and shall be used only for the purposes set forth in this chapter.

     (d) Unexpended balances and any earnings thereon shall not revert to the general fund but

shall remain in the Rhode Island highway maintenance account. There shall be no requirement

that monies received into the Rhode Island highway maintenance account during any given

calendar year or fiscal year be expended during the same calendar year or fiscal year.

     (e) The Rhode Island highway maintenance account shall be administered by the director,

who shall allocate and spend monies from the fund only in accordance with the purposes and

procedures set forth in this chapter.

     (4) All fees Fees assessed pursuant to § 31-47.1-11, and chapters 3, 6, 10, and 10.1 of

title 31 shall be deposited into the Rhode Island highway maintenance account based upon the

following schedule , provided that for fiscal years 2016, 2017 and 2018 these fees be transferred

as follows:

     (i) From July 1, 2015 through June 30, 2016, twenty-five percent (25%) will be

deposited;

     (ii) From July 1, 2016 through June 30, 2017, seventy-five percent (75%) sixty-two and

one-half percent (62.5%) will be deposited; and

     (iii) From July 1, 2017 and each year thereafter, one hundred percent (100%) seventy-

five percent (75%) will be deposited;

     (5) All remaining funds from previous general obligation bond issues that have not

otherwise been allocated.

     SECTION 6. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 13.1

THE RHODE ISLAND BRIDGE REPLACEMENT, RECONSTRUCTION AND

MAINTENANCE FUND

     42-13.1-1. Short title. -- This chapter shall be known and may be cited as "The Rhode

Island Bridge Replacement, Reconstruction and Maintenance Fund Act of 2015."

     42-13.1-2. Legislative findings. -- The general assembly finds that:

     (1) The state of Rhode Island, through the Rhode Island department of transportation

("the department"), funds the reconstruction, replacement, and maintenance of all bridges in

Rhode Island, except the Newport Bridge, the Mount Hope Bridge, the Jamestown-Verrazzano

Bridge, and the Sakonnet River Bridge.

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     (2) According to the Federal Highway Administration (FHWA) 2015 National Bridge

Inventory (NBI) data, there are seven hundred sixty-four (764) bridges in Rhode Island longer

than twenty feet (20'). Of these NBI bridges, one hundred seventy-seven (177) bridges, or twenty-

three percent (23%), are classified as structurally deficient.

     (3) According to the United States General Accounting Office, just one fully-loaded five

(5)-axle tractor trailer has the same impact on an interstate highway as nine thousand six hundred

(9,600) automobiles.

     (4) For the past several decades, Rhode Island has depended on three primary sources for

funding all transportation infrastructure construction, maintenance, and operations: Federal funds,

state bond funds, and motor fuel tax revenue. Of these sources, two (2) (Federal funds and motor

fuel tax revenue) are mutable.

     (5) The 2008 governor's blue ribbon panel on transportation funding, the 2011 senate

special commission on sustainable transportation funding, and the 2013 special legislative

commission to study the funding for East Bay bridges determined that there is insufficient

revenue available from all existing sources to fund the maintenance and improvement of Rhode

Island transportation infrastructure.

     (6) In 2011, the Rhode Island general assembly adopted a component of the

recommended systemic change to transportation funding by creating the Rhode Island highway

maintenance account, to be funded by an increase in license and registration fees and

contributions from the Rhode Island capital plan fund, beginning in FY2014.

     (7) In 2014, the Rhode Island general assembly adopted changes to the Rhode Island

highway maintenance account to provide additional state revenue for transportation infrastructure

in future years.

     (8) Although the state is shifting from long-term borrowing to reliance upon annual

revenues to fund transportation infrastructure on a pay-as-you go basis, and although a recurring

state source of capital funds has been established, there is still a funding gap between the revenue

needed to maintain all bridges in structurally sound and good condition and the annual amounts

generated by current dedicated revenue sources.

     42-13.1-3. Definitions. -- As used in this chapter, the following words and terms shall

have the following meanings, unless the context shall indicate another or different meaning:

     (1) "Availability payment" means a payment by the department under a contract for a toll

facility or any other facility, which is based on the availability of the facility at a specified

performance level and may include, without limitation, compensation for operations, maintenance

and financing of the facility.

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     (2) "Bonds or notes" means the bonds, notes, securities or other obligations or evidences

of indebtedness issued by the Rhode Island turnpike and bridge authority pursuant to Chapter 12

of title 24, all of which shall be issued under the name of and known as obligations of the

turnpike and bridge authority.

     (3) "Department" means the department of transportation, or, if the department shall be

abolished, the board, body, or commission succeeding to the principal functions thereof or upon

whom the powers are granted by chapter 5 of title 37.

     (4) "Large commercial truck" shall be defined pursuant to the Federal Highway

Administration (FHWA) vehicle classification schedule as any vehicle within Class 8 – single

trailer, three (3) or four (4) axles up to and including Class 13 - seven (7) or more axle multi-

trailer trucks, as such classifications may be revised from time to time by the FHWA.

     (5) "Other vehicle" shall be defined pursuant to the Federal Highway Administration

(FHWA) vehicle classification schedule as any vehicle within Class 1 – motorcycles and Class 2

– passenger cars up to and including Class 7 – single unit 4 or more axle trucks, as such

classifications may be revised from time to time by the FHWA.

     (6) "Radio frequency identification transponder" (RFID) means a toll collection system

approved by the department that may consist of a toll tag placed inside the vehicle and an

overhead antenna which reads the toll tag and collects the toll.

     (7) "Toll evader" means, for the purposes of this chapter, any registered owner of any

large commercial truck that passes through any electronic tolling location as authorized pursuant

to § 42-13-1.4 and who does not pay the required toll and/or fees, fines, or penalties within the

maximum allowable period specified under § 42-13-1-12.

     (8) "Toll facility" means equipment or capital improvements funded in whole or in part

by toll revenue, or required to effectuate toll collection.

     (9) "Turnpike and bridge authority" means the Rhode Island turnpike and bridge

authority, a public instrumentality of the state of Rhode Island, created by the general assembly

pursuant to chapter 12 of title 24.

     42-13.1-4. Authority to collect tolls on large commercial trucks only. -- (a) The

department is hereby authorized to fix, revise, charge, and collect tolls for the privilege of

traveling on Rhode Island bridges to provide for replacement, reconstruction, maintenance and

operation of Rhode Island bridges. The tolls shall be fixed after conducting a cost benefit analysis

and providing an opportunity for public comment. These tolls shall be collected on large

commercial trucks only and shall not be collected on any other vehicle. Such tolls may be

implemented utilizing all-electric toll collection methodologies on a cash-less basis, or utilizing

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any other methodologies determined by the department.

     (b) The department will establish a program to limit the assessment of the tolls upon the

same individual large commercial truck using a RFID, to once per toll facility, per day in each

direction or an equivalent frequency use program based upon individual large commercial vehicle

use.

     (c) The department will establish a program to limit the daily maximum amount of the

toll collected upon the same individual large commercial truck using a RFID to the amount of a

border to border round trip on Route 95 Connecticut through Rhode Island to Route 95

Massachusetts. The maximum amount of the toll shall be proportionate with the toll collection

methodology in use by the individual large commercial truck. Said program toll shall be adjusted

accordingly to fulfill obligations of any and all bonds and notes issued pursuant to this chapter.

     42-13.1-5. Collection of tolls on passenger cars and light trucks expressly prohibited.

-- Notwithstanding any other provisions of this chapter, the department is expressly prohibited

from collecting tolls hereunder on other vehicles, herein defined to include motorcycles,

passenger cars, and all vehicles classed one through seven (7) by the Federal Highway

Administration (FHWA) vehicle classification schedule.

     42-13.1-6. Authority to pledge monies received. -- The Turnpike and Bridge Authority

shall have the power to pledge all or any portion of the monies received from the department as

authorized by this chapter to the payment of bonds or notes of the Turnpike and Bridge Authority

issued or incurred pursuant to the provisions of this chapter, including the joint resolution

authorizing revenue bonds adopted herewith, and/or to the payment of any amounts due under

contracts for toll facilities, including availability payments, leases or any other financing

mechanism undertaken to further the objectives of this chapter. Without limiting the generality of

the foregoing, the department and the authority are authorized to enter into loan agreements,

whereby the authority lends the net proceeds of bonds and notes to the department. Any pledges

made pursuant to this section shall be valid and binding from the time such pledge is made.

     42-13.1-7. Rhode Island bridge, replacement, reconstruction and maintenance fund.

-- (a) There is hereby created a special account in the intermodal surface transportation fund, as

established by § 31-36-20, to be known as the Rhode Island bridge replacement, reconstruction

and maintenance fund.

     (b) The fund shall consist of all those monies received by the department under this

chapter, including: (1) The monies received through the collection of tolls on bridges in Rhode

Island; (2) Any fees, fines or penalties collected pursuant to this chapter; (3) Proceeds of any

bonds or notes of the turnpike and bridge authority to the extent required by any trust agreement

LC002897 - Page 13 of 35

for such bonds; and (4) Investment earnings on amounts credited to the fund.

     (c) Unexpended balances and any earnings thereon shall not revert to the general fund but

shall remain in the Rhode Island bridge replacement, reconstruction and maintenance fund. There

shall be no requirement that monies received into the fund during any given calendar year or

fiscal year be expended during the same calendar year or fiscal year.

     42-13.1-8. Designation of toll bridges. -- The director of the department may designate

any Rhode Island bridge on the National Highway System as a toll bridge in order to facilitate the

financing of replacement, reconstruction, and maintenance of Rhode Island's system of bridges.

     42-13.1-9. Amount of tolls. -- The department's authority to fix and adjust the amount of

tolls shall be determined by the costs of: (1) Replacement, reconstruction, maintenance, and

operation of Rhode Island's system of bridges and/or any portion or portions thereof, including

costs associated with the operation and maintenance of the toll facilities and administrative costs

in connection therewith; and (2) Debt service and financing costs in connection with bonds or

notes that have been issued under this chapter, and/or amounts due under contracts for toll

facilities, including availability payments, leases or any other financing mechanism undertaken to

further the objectives of this chapter.

     42-13.1-10. Limitations on use of revenue. -- All revenue collected pursuant to this

chapter and deposited to the Rhode Island bridge replacement, reconstruction and maintenance

fund ("fund") shall be used to pay: (1) The costs associated with the operation and maintenance of

the toll facility, and the replacement, reconstruction, maintenance and operation of Rhode Island

bridges on the National Highway System or any other use permitted under 23 USC 129; and (2)

Subject to annual appropriation by the general assembly, the debt service and financing costs of

any bonds or notes that have been issued under this chapter, and/or amounts due under contracts

for toll facilities, including availability payments, leases or any other financing mechanism

undertaken to further the objectives of this chapter. Tolls shall not be subject to supervision or

regulation by any commission, board, bureau, agency or official of the state or any municipality

or other political subdivision of state except the department.

     42-13.1-11. Procurement of toll facilities. -- Without limiting any right of the

department to award contracts under any other law, the department shall have the right to procure

toll facilities through contracts aggregating the services of design, engineering, construction,

finance, operations, maintenance or any combination of the foregoing. Notwithstanding any

requirement of law to the contrary, the department may award such contracts on the basis of

competitive negotiation, in accordance with § 37-2-19. Such contracts may include availability

payments or any other compensation structure determined appropriate by the department to

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further the objectives of this chapter.

     42-13.1-12. Penalty for nonpayment of toll. -- (a) The department shall have the

authority to establish and collect fees, fines, or penalties from registered owners of large

commercial trucks who use or attempt to use any toll facility established under § 42-13.1-4,

without paying the toll at the rate then in force for such use.

     (b) Any fee, fine, or penalty shall be in addition to the toll or tolls initially incurred and

shall be no less than an amount sufficient to cover the cost of administration and collection of

said fines, fees, and penalties.

     (c) The registered owner of the large commercial truck subject to toll shall be primarily

responsible for all tolls, fees, fines and penalties assessed pursuant to the provisions of this

chapter.

     (d) Prior to the collection of any toll on large commercial trucks, the department shall

establish a maximum allowable period for the payment of tolls and any subsequent fees, fines,

and penalties assessed.

     42-13.1-13. Additional penalties -- Toll evasion. -- Any toll evader who fails or refuses

to pay or prepay the required toll and such fees, fines, and penalties as assessed under § 42-13.1-

12 and within the maximum allowable period specified therein shall be required to pay a fine not

to exceed three thousand dollars ($3,000) and shall pay the toll amount due and any

administrative costs, or shall have his or her registration suspended until payment is made in full

for the violation. A toll evader under this section shall receive a traffic violation summons which

shall be subject to the jurisdiction of the traffic tribunal. All amounts due under this section shall

be remitted to the department.

     42-13.1-14. Conformance to statute, rules, and regulations. -- All programs and

funding proposals shall conform to applicable federal law, rules and regulations, to the extent that

federal funding is utilized. The department shall promulgate state rules and regulations to carry

out the purposes of this chapter. Included within said rules and regulations shall be a provision

requiring any public comment period to continue for at least thirty (30) days and a provision

requiring advance notification to be provided to the governor, speaker of the house of

representatives and senate president prior to any announcement of public hearing or public

comment period establishing or modifying the amount of tolls to be collected. In promulgating

these rules and regulations, the department shall establish policies and procedures that promote

procedural transparency.

     SECTION 7. Chapter 42-64.10 of the General Laws entitled "Quonset Development

Corporation" is hereby amended by adding thereto the following section:

LC002897 - Page 15 of 35

     42-64.10-16. Quonset economic development fund for shippers. -- (a) There is hereby

established an economic development fund for shippers ("the fund") under the jurisdiction of the

corporation which shall be administered by the corporation. The purpose of the fund is to provide

economic development benefits to companies that operate or utilize commercial trucks at Quonset

Business Park, with benefits to be based on the number, nature and type of truck trips taken to

and from Quonset Business Park.

     (b) The corporation shall adopt guidelines, rules, or regulations necessary for the

implementation of this section including establishing the requirements for eligibility for the

economic development benefits authorized in this section and the method for calculating the

amounts of such benefits to be awarded to any person meeting the eligibility requirements.

     (c) Beginning fiscal year 2017 and annually thereafter, two million five hundred thousand

dollars ($2,500,000) shall be appropriated from the general fund to the Quonset economic

development fund for shippers. That fund shall only be used for the purposes set forth in this

section. Any unspent funds remaining in the fund at the end of the fiscal year, shall be returned to

the general fund.

     (d) The corporation shall not have any obligation to make any award of benefits under

this section.

     (e) In no event shall the total amount of the economic development benefits received

under this section exceed seventy percent (70%) of the total dollar amount of tolls actually paid

by said person, entity or taxpayer in any calendar year, pursuant to chapter 13.1 of title 42.

     SECTION 8. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is

hereby amended by adding thereto the following section:

     44-3-65. Property tax rebate program for large commercial trucks. -- (a) The

division of taxation shall offer a rebate program for property taxes paid by a person or entity to

any city or town within this state for large commercial trucks. For the purpose of this section,

large commercial trucks shall be defined pursuant to the Federal Highway Administration vehicle

classification schedule as any vehicle from Class 8 up to and including Class 13.

     (b) The amount of the rebate paid to a person or entity shall be no greater than three

hundred dollars ($300) per one thousand dollars ($1,000) of assessed value of the property taxes

paid by said person or entity to any city or town within this state in any calendar year.

     (c) To be eligible for a rebate under this section, a person or entity shall complete and

submit an application for the rebate on the forms prescribed by the tax administrator.

     (d) In no event shall the total amount of (1) The rebates paid to any person or entity under

this section and §31-36-24 plus (2) The tax credits applied to any taxpayer under § 44-11-46 and

LC002897 - Page 16 of 35

the tax credits for vehicle registration fees under § 44-30-2.6 plus (3) The economic development

benefits received under §§ 1-2-1.2 and 42-64.10-16, exceed thirteen million five hundred

thousand dollars ($13,500,000).

     (e) The tax administrator shall promulgate rules and regulations to implement the

provisions of this section.

     SECTION 9. Chapter 44-11 of the General Laws entitled "Business Corporation Tax" is

hereby amended by adding thereto the following section:

     44-11-46. Tax credit for vehicle registration fees. -- (a) Any taxpayer who pays a

registration fee under § 31-6-1 for large commercial trucks is entitled to a tax credit equal to the

amount paid and apportioned to this state. For the purpose of this section, large commercial

trucks shall be defined pursuant to the Federal Highway Administration vehicle classification

schedule as any vehicle from Class 8 up to and including Class 13.

     (b) Any taxpayer who pays a registration fee subject to the International Registration

Plan (IRP) for large commercial trucks shall be entitled to a tax credit equal to the amount

apportioned and paid to this state by the taxpayer.

     (c) The credit enacted under this section shall reduce the taxes imposed by §44-11-2

including the minimum tax under § 44-11-2(e).

     (d) The credit established by this section shall be non-refundable.

     (e) In no event shall the total amount of (1) the rebates paid to any person or entity under

§ 31-36-24 and § 44-3-65 plus (2) the tax credits applied to any taxpayer under this section and

the tax credits for vehicle registration fees under § 44-30-2.6 plus (3) the economic development

benefits received under §§ 1-2-1.2 and 42-64.10-16, exceed thirteen million five hundred

thousand dollars ($13,500,000).

     SECTION 10. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal

Income Tax" is hereby amended to read as follows:

     44-30-2.6. Rhode Island taxable income -- Rate of tax. -- (a) "Rhode Island taxable

income" means federal taxable income as determined under the Internal Revenue Code, 26 U.S.C.

§ 1 et seq., not including the increase in the basic standard deduction amount for married couples

filing joint returns as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003 and

the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and as modified by

the modifications in § 44-30-12.

     (b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on

or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island

taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-

LC002897 - Page 17 of 35

five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year

2002 and thereafter of the federal income tax rates, including capital gains rates and any other

special rates for other types of income, except as provided in § 44-30-2.7, which were in effect

immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of

2001 (EGTRRA); provided, rate schedules shall be adjusted for inflation by the tax administrator

beginning in taxable year 2002 and thereafter in the manner prescribed for adjustment by the

commissioner of Internal Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or

after January 1, 2006, a taxpayer may elect to use the alternative flat tax rate provided in § 44-30-

2.10 to calculate his or her personal income tax liability.

     (c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative

minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode

Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by

multiplying the federal tentative minimum tax without allowing for the increased exemptions

under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal

form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%)

for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing

the product to the Rhode Island tax as computed otherwise under this section. The excess shall be

the taxpayer's Rhode Island alternative minimum tax.

     (1) For tax years beginning on or after January 1, 2005 and thereafter the exemption

amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by

the tax administrator in the manner prescribed for adjustment by the commissioner of Internal

Revenue in 26 U.S.C. § 1(f).

     (2) For the period January 1, 2007 through December 31, 2007, and thereafter, Rhode

Island taxable income shall be determined by deducting from federal adjusted gross income as

defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island

itemized deduction amount and the Rhode Island exemption amount as determined in this section.

     (A) Tax imposed.

     (1) There is hereby imposed on the taxable income of married individuals filing joint

returns and surviving spouses a tax determined in accordance with the following table:

If taxable income is: The tax is:

Not over $53,150 3.75% of taxable income

Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150

Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500

Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850

LC002897 - Page 18 of 35

Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700

     (2) There is hereby imposed on the taxable income of every head of household a tax

determined in accordance with the following table:

If taxable income is: The tax is:

Not over $42,650 3.75% of taxable income

Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650

Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100

Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350

Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700

     (3) There is hereby imposed on the taxable income of unmarried individuals (other than

surviving spouses and heads of households) a tax determined in accordance with the following

table:

If taxable income is: The tax is:

Not over $31,850 3.75% of taxable income

Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850

Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100

Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850

Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700

     (4) There is hereby imposed on the taxable income of married individuals filing separate

returns and bankruptcy estates a tax determined in accordance with the following table:

If taxable income is: The tax is:

Not over $26,575 3.75% of taxable income

Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575

Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250

Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925

Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850

     (5) There is hereby imposed a taxable income of an estate or trust a tax determined in

accordance with the following table:

If taxable income is: The tax is:

Not over $2,150 3.75% of taxable income

Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150

Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000

Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650

Over $10,450 $737.50 plus 9.90% of the excess over $10,450

LC002897 - Page 19 of 35

     (6) Adjustments for inflation. The dollars amount contained in paragraph (A) shall be

increased by an amount equal to:

     (a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by;

     (b) The cost-of-living adjustment determined under section (J) with a base year of 1993;

     (c) The cost-of-living adjustment referred to in subparagraph (a) and (b) used in making

adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall

be determined under section (J) by substituting "1994" for "1993."

     (B) Maximum capital gains rates

     (1) In general If a taxpayer has a net capital gain for tax years ending prior to January 1,

2010, the tax imposed by this section for such taxable year shall not exceed the sum of:

     (a) 2.5 % of the net capital gain as reported for federal income tax purposes under section

26 U.S.C. 1(h)(1)(a) and 26 U.S.C. 1(h)(1)(b).

     (b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.

1(h)(1)(c).

     (c) 6.25% of the net capital gain as reported for federal income tax purposes under 26

U.S.C. 1(h)(1)(d).

     (d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.

1(h)(1)(e).

     (2) For tax years beginning on or after January 1, 2010 the tax imposed on net capital

gain shall be determined under subdivision 44-30-2.6(c)(2)(A).

     (C) Itemized deductions.

     (1) In general

     For the purposes of section (2) "itemized deductions" means the amount of federal

itemized deductions as modified by the modifications in § 44-30-12.

     (2) Individuals who do not itemize their deductions In the case of an individual who does

not elect to itemize his deductions for the taxable year, they may elect to take a standard

deduction.

     (3) Basic standard deduction. The Rhode Island standard deduction shall be allowed in

accordance with the following table:

     Filing status Amount

     Single $5,350

     Married filing jointly or qualifying widow(er) $8,900

     Married filing separately $4,450

     Head of Household $7,850

LC002897 - Page 20 of 35

     (4) Additional standard deduction for the aged and blind. An additional standard

deduction shall be allowed for individuals age sixty-five (65) or older or blind in the amount of

$1,300 for individuals who are not married and $1,050 for individuals who are married.

     (5) Limitation on basic standard deduction in the case of certain dependents. In the case

of an individual to whom a deduction under section (E) is allowable to another taxpayer, the basic

standard deduction applicable to such individual shall not exceed the greater of:

     (a) $850;

     (b) The sum of $300 and such individual's earned income;

     (6) Certain individuals not eligible for standard deduction. In the case of:

     (a) A married individual filing a separate return where either spouse itemizes deductions;

     (b) Nonresident alien individual;

     (c) An estate or trust;

     The standard deduction shall be zero.

     (7) Adjustments for inflation. Each dollars amount contained in paragraphs (3), (4) and

(5) shall be increased by an amount equal to:

     (a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988,

multiplied by

     (b) The cost-of-living adjustment determined under section (J) with a base year of 1988.

     (D) Overall limitation on itemized deductions

     (1) General rule.

     In the case of an individual whose adjusted gross income as modified by § 44-30-12

exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the

taxable year shall be reduced by the lesser of:

     (a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12

over the applicable amount; or

     (b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable

for such taxable year.

     (2) Applicable amount.

     (a) In general.

     For purposes of this section, the term "applicable amount" means $156,400 ($78,200 in

the case of a separate return by a married individual)

     (b) Adjustments for inflation. Each dollar amount contained in paragraph (a) shall be

increased by an amount equal to:

     (i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by

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     (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.

     (3) Phase-out of Limitation.

     (a) In general.

     In the case of taxable year beginning after December 31, 2005, and before January 1,

2010, the reduction under section (1) shall be equal to the applicable fraction of the amount which

would be the amount of such reduction.

     (b) Applicable fraction. For purposes of paragraph (a), the applicable fraction shall be

determined in accordance with the following table:

For taxable years beginning in calendar year The applicable fraction is

     2006 and 2007 2/3

     2008 and 2009 1/3

     (E) Exemption amount

     (1) In general.

     Except as otherwise provided in this subsection, the term "exemption amount" mean

$3,400.

     (2) Exemption amount disallowed in case of certain dependents.

     In the case of an individual with respect to whom a deduction under this section is

allowable to another taxpayer for the same taxable year, the exemption amount applicable to such

individual for such individual's taxable year shall be zero.

     (3) Adjustments for inflation.

     The dollar amount contained in paragraph (1) shall be increased by an amount equal to:

     (a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by

     (b) The cost-of-living adjustment determined under section (J) with a base year of 1989.

     (4) Limitation.

     (a) In general.

     In the case of any taxpayer whose adjusted gross income as modified for the taxable year

exceeds the threshold amount shall be reduced by the applicable percentage.

     (b) Applicable percentage. In the case of any taxpayer whose adjusted gross income for

the taxable year exceeds the threshold amount, the exemption amount shall be reduced by two (2)

percentage points for each $2,500 (or fraction thereof) by which the taxpayer's adjusted gross

income for the taxable year exceeds the threshold amount. In the case of a married individual

filing a separate return, the preceding sentence shall be applied by substituting "$1,250" for

"$2,500." In no event shall the applicable percentage exceed one hundred percent (100%).

     (c) Threshold Amount. For the purposes of this paragraph, the term "threshold amount"

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shall be determined with the following table:

     Filing status Amount

     Single $156,400

     Married filing jointly of qualifying widow(er) $234,600

     Married filing separately $117,300

     Head of Household $195,500

     (d) Adjustments for inflation.

     Each dollars amount contain in paragraph (b) shall be increased by an amount equal to:

     (i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by

     (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.

     (5) Phase-out of Limitation.

     (a) In general.

     In the case of taxable years beginning after December 31, 2005, and before January 1,

2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which

would be the amount of such reduction.

     (b) Applicable fraction. For the purposes of paragraph (a), the applicable fraction shall be

determined in accordance with the following table:

For taxable years beginning in calendar year The applicable fraction is

     2006 and 2007 2/3

     2008 and 2009 1/3

     (F) Alternative minimum tax

     (1) General rule. - There is hereby imposed (in addition to any other tax imposed by this

subtitle) a tax equal to the excess (if any) of:

     (a) The tentative minimum tax for the taxable year, over

     (b) The regular tax for the taxable year.

     (2) The tentative minimum tax for the taxable year is the sum of:

     (a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus

     (b) 7.0 percent of so much of the taxable excess above $175,000.

     (3) The amount determined under the preceding sentence shall be reduced by the

alternative minimum tax foreign tax credit for the taxable year.

     (4) Taxable excess. - For the purposes of this subsection the term "taxable excess" means

so much of the federal alternative minimum taxable income as modified by the modifications in §

44-30-12 as exceeds the exemption amount.

     (5) In the case of a married individual filing a separate return, subparagraph (2) shall be

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applied by substituting "$87,500" for $175,000 each place it appears.

     (6) Exemption amount. For purposes of this section "exemption amount" means:

     Filing status Amount

     Single $39,150

     Married filing jointly or qualifying widow(er) $53,700

     Married filing separately $26,850

     Head of Household $39,150

     Estate or trust $24,650

     (7) Treatment of unearned income of minor children

     (a) In general.

     In the case of a minor child, the exemption amount for purposes of section (6) shall not

exceed the sum of:

     (i) Such child's earned income, plus

     (ii) $6,000.

     (8) Adjustments for inflation.

     The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount

equal to:

     (a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied

by

     (b) The cost-of-living adjustment determined under section (J) with a base year of 2004.

     (9) Phase-out.

     (a) In general.

     The exemption amount of any taxpayer shall be reduced (but not below zero) by an

amount equal to twenty-five percent (25%) of the amount by which alternative minimum taxable

income of the taxpayer exceeds the threshold amount.

     (b) Threshold amount. For purposes of this paragraph, the term "threshold amount" shall

be determined with the following table:

     Filing status Amount

     Single $123,250

     Married filing jointly or qualifying widow(er) $164,350

     Married filing separately $82,175

     Head of Household $123,250

     Estate or Trust $82,150

     (c) Adjustments for inflation

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     Each dollar amount contained in paragraph (9) shall be increased by an amount equal to:

     (i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by

     (ii) The cost-of-living adjustment determined under section (J) with a base year of 2004.

     (G) Other Rhode Island taxes

     (1) General rule. - There is hereby imposed (in addition to any other tax imposed by this

subtitle) a tax equal to twenty-five percent (25%) of:

     (a) The Federal income tax on lump-sum distributions.

     (b) The Federal income tax on parents' election to report child's interest and dividends.

     (c) The recapture of Federal tax credits that were previously claimed on Rhode Island

return.

     (H) Tax for children under 18 with investment income

     (1) General rule. – There is hereby imposed a tax equal to twenty-five percent (25%) of:

(a) The Federal tax for children under the age of 18 with investment income.

     (I) Averaging of farm income

     (1) General rule. - At the election of an individual engaged in a farming business or

fishing business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of:

     (a) The Federal averaging of farm income as determined in IRC section 1301.

     (J) Cost-of-living adjustment

     (1) In general.

     The cost-of-living adjustment for any calendar year is the percentage (if any) by which:

     (a) The CPI for the preceding calendar year exceeds

     (b) The CPI for the base year.

     (2) CPI for any calendar year. For purposes of paragraph (1), the CPI for any calendar

year is the average of the Consumer Price Index as of the close of the twelve (12) month period

ending on August 31 of such calendar year.

     (3) Consumer Price Index

     For purposes of paragraph (2), the term "consumer price index" means the last consumer

price index for all urban consumers published by the department of labor. For purposes of the

preceding sentence, the revision of the consumer price index which is most consistent with the

consumer price index for calendar year 1986 shall be used.

     (4) Rounding.

     (a) In general.

     If any increase determined under paragraph (1) is not a multiple of $50, such increase

shall be rounded to the next lowest multiple of $50.

LC002897 - Page 25 of 35

     (b) In the case of a married individual filing a separate return, subparagraph (a) shall be

applied by substituting "$25" for $50 each place it appears.

     (K) Credits against tax. - For tax years beginning on or after January 1, 2001, a taxpayer

entitled to any of the following federal credits enacted prior to January 1, 1996 shall be entitled to

a credit against the Rhode Island tax imposed under this section:

     (1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5].

     (2) Child and dependent care credit;

     (3) General business credits;

     (4) Credit for elderly or the disabled;

     (5) Credit for prior year minimum tax;

     (6) Mortgage interest credit;

     (7) Empowerment zone employment credit;

     (8) Qualified electric vehicle credit.

     (L) Credit against tax for adoption. - For tax years beginning on or after January 1, 2006,

a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode

Island tax imposed under this section if the adopted child was under the care, custody, or

supervision of the Rhode Island department of children, youth and families prior to the adoption.

     (M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits

provided there shall be no deduction based on any federal credits enacted after January 1, 1996,

including the rate reduction credit provided by the federal Economic Growth and Tax

Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be

reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax

purposes shall determine the Rhode Island amount to be recaptured in the same manner as

prescribed in this subsection.

     (N) Rhode Island earned income credit

     (1) In general.

     A taxpayer entitled to a federal earned income credit shall be allowed a Rhode Island

earned income credit equal to ten percent (10%) of the federal earned income credit. Such credit

shall not exceed the amount of the Rhode Island income tax.

     (2) Refundable portion. In the event the Rhode Island earned income credit allowed under

section (J) exceeds the amount of Rhode Island income tax, a refundable earned income credit

shall be allowed.

     (a) For purposes of paragraph (2) refundable earned income credit means one hundred

percent (100%) of the amount by which the Rhode Island earned income credit exceeds the

LC002897 - Page 26 of 35

Rhode Island income tax.

     (O) The tax administrator shall recalculate and submit necessary revisions to paragraphs

(A) through (J) to the general assembly no later than February 1, 2010 and every three (3) years

thereafter for inclusion in the statute.

     (3) For the period January 1, 2011 through December 31, 2011, and thereafter, "Rhode

Island taxable income" means federal adjusted gross income as determined under the Internal

Revenue Code, 26 U.S.C. 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-

30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to

subparagraph 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant of

subparagraph 44-30-2.6(c)(3)(C).

     (A) Tax imposed.

     (I) There is hereby imposed on the taxable income of married individuals filing joint

returns, qualifying widow(er), every head of household, unmarried individuals, married

individuals filing separate returns and bankruptcy estates, a tax determined in accordance with the

following table:

     RI Taxable Income RI Income Tax

Over But not Over Pay + % On Excess On The Amount Over

$0 - $55,000 $0 + 3.75% $0

55,000 - 125,000 2,063 + 4.75% 55,000

125,000 - 5,388 + 5.99% 125,000

     (II) There is hereby imposed on the taxable income of an estate or trust a tax determined

in accordance with the following table:

     RI Taxable Income RI Income Tax

Over But not Over Pay + % On Excess On The Amount Over

$0 - $2,230 $0 + 3.75% $0

2,230 - 7,022 84 + 4.75% 2,230

7,022 - 312 + 5.99% 7,022

     (B) Deductions:

     (I) Rhode Island Basic Standard Deduction. Only the Rhode Island standard deduction

shall be allowed in accordance with the following table:

     Filing status: Amount

     Single $7,500

     Married filing jointly or qualifying widow(er) $15,000

     Married filing separately $7,500

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     Head of Household $11,250

     (II) Nonresident alien individuals, estates and trusts are not eligible for standard

deductions.

     (III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode

Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five

thousand dollars ($175,000), the standard deduction amount shall be reduced by the applicable

percentage. The term "applicable percentage" means twenty (20) percentage points for each five

thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for

the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).

     (C) Exemption Amount:

     (I) The term "exemption amount" means three thousand five hundred dollars ($3,500)

multiplied by the number of exemptions allowed for the taxable year for federal income tax

purposes.

     (II) Exemption amount disallowed in case of certain dependents. In the case of an

individual with respect to whom a deduction under this section is allowable to another taxpayer

for the same taxable year, the exemption amount applicable to such individual for such

individual's taxable year shall be zero.

     (D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode

Island purposes pursuant to § 33-30-12, for the taxable year exceeds one hundred seventy- five

thousand dollars ($175,000), the exemption amount shall be reduced by the applicable

percentage. The term "applicable percentage" means twenty (20) percentage points for each five

thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for

the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).

     (E) Adjustment for inflation. - The dollar amount contained in subparagraphs 44-30-

2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount

equal to:

     (I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-

2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000,

multiplied by;

     (II) The cost-of-living adjustment with a base year of 2000.

     (III) For the purposes of this section the cost-of-living adjustment for any calendar year is

the percentage (if any) by which the consumer price index for the preceding calendar year

exceeds the consumer price index for the base year. The consumer price index for any calendar

year is the average of the consumer price index as of the close of the twelve (12) month period

LC002897 - Page 28 of 35

ending on August 31, of such calendar year.

     (IV) For the purpose of this section the term "consumer price index" means the last

consumer price index for all urban consumers published by the department of labor. For the

purpose of this section the revision of the consumer price index which is most consistent with the

consumer price index for calendar year 1986 shall be used.

     (V) If any increase determined under this section is not a multiple of fifty dollars

($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the

case of a married individual filing separate return, if any increase determined under this section is

not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower

multiple of twenty-five dollars ($25.00).

     (E) Credits against tax.

     (I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on

or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be

as follows:

     (a) Rhode Island Earned Income Credit: Credit shall be allowed for earned income credit

pursuant to subparagraph 44-30-2.6(c)(2)(N).

     (b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided

in § 44-33-1 et seq.

     (c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax

credit as provided in § 44-30.3-1 et seq.

     (d) Credit for income taxes of other states. - Credit shall be allowed for income tax paid

to other states pursuant to § 44-30-74.

     (e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax

credit as provided in § 44-33.2-1 et seq.

     (f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture

production tax credit as provided in § 44-31.2-1 et seq.

     (g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of

the federal child and dependent care credit allowable for the taxable year for federal purposes;

provided, however, such credit shall not exceed the Rhode Island tax liability.

     (h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for

contributions to scholarship organizations as provided in § 44-62 et seq.

     (i) Credit for tax withheld. - Wages upon which tax is required to be withheld shall be

taxable as if no withholding were required, but any amount of Rhode Island personal income tax

actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax

LC002897 - Page 29 of 35

administrator on behalf of the person from whom withheld, and the person shall be credited with

having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable

year of less than twelve (12) months, the credit shall be made under regulations of the tax

administrator.

     (j) Tax Credits for Vehicle Registration Fees. Any taxpayer who pays a registration fee

under § 31-6-1 for a large commercial truck shall be entitled to a tax credit equal to the amount

actually paid and apportioned to this state. For the purpose of this section, large commercial

trucks shall be defined pursuant to the Federal Highway Administration vehicle classification

schedule as any vehicle from Class 8 up to and including Class 13. Any taxpayer who pays a

registration fee subject to the International Registration Plan (IRP) for a large commercial truck

shall be entitled to a tax credit equal to the amount paid and apportioned to this state. The credit

under this section shall be non-refundable. In no event shall the total amount of (1) the rebates

paid to any person or entity under § 31-36-24 and § 44-3-65 plus (2) the tax credits applied to any

taxpayer under this subsection and § 44-11-46 plus (3) the economic development benefits

received under §§ 1-2-1.2 and 42-64.10-16, exceed thirteen million five hundred thousand dollars

($13,500,000).

     (2) Except as provided in section 1 above, no other state and federal tax credit shall be

available to the taxpayers in computing tax liability under this chapter.

     SECTION 11. This section consists of a Joint Resolution submitted pursuant to Rhode

Island General Laws § 35-18-1, et seq.

     WHEREAS, The Rhode Island Department of Transportation ("the Department") has

completed a detailed review of available funding sources for transportation reconstruction,

maintenance, and repair and has determined that the funding available to carry out an annual

transportation infrastructure program (the "program") is insufficient; and

     WHEREAS, The limitation in funding has occurred due the lack of a long-term

transportation authorization at the federal level, absence of a state-funded capital investment

program in transportation infrastructure, and a reduction in federal funding through the

elimination of federal earmarks and expiration of additional special federal funds; and

     WHEREAS, Section 42-13.1-4 of the Rhode Island General Laws allows the Department

to collect a toll on large commercial trucks only; and

     WHEREAS, The Department has explored various options to finance the costs of a

robust infrastructure program and concluded that revenue bonds supported by revenue that will be

collected from large commercial truck tolls for the privilege of traveling on Rhode Island bridges

represents the best financing mechanism for the State of Rhode Island, inasmuch as the proposed

LC002897 - Page 30 of 35

bonds will provide assurance of necessary funding for the program; and

     WHEREAS, The Rhode Island Turnpike and Bridge Authority ("Authority") is a public

instrumentality of the State of Rhode Island (the "state"), created by the General Assembly

pursuant to chapter 12 of 24. (as enacted, reenacted and amended, the "act"); and

     WHEREAS, The act authorizes the Authority to borrow money and issue bonds, notes,

securities or other obligations or evidences of indebtedness ("bonds or notes") for any of its

corporate purposes; and

     WHEREAS, This General Assembly finds that the reconstruction, maintenance, and

repair of the transportation infrastructure of the state is critical for economic development and the

general welfare of both business and residents; and

     WHEREAS, The General Assembly has studied the issue of sustainable transportation

funding and has determined that no single approach, instrument, or method is able to provide

sufficient revenue to maintain the state transportation system in a state of good repair; and

     WHEREAS, Pursuant to §§ 35-18-3 and 35-18-4 of Rhode Island General Laws, the

Department has requested the approval of the General Assembly for (a) the issuance of revenue

bonds or notes through and in conjunction with the Authority, and (b) any execution of

availability payment contracts, to allow the Department to move forward with the replacement,

reconstruction, and maintenance of Rhode Island's system of bridges, including funding,

capitalized interest, costs of issuing the bonds or notes, and related costs, and the establishment of

reserves for the project and the bonds or notes, including a debt service reserve fund;

now, therefore, be it

     RESOLVED, The General Assembly hereby approves the Authority's issuance of the

bonds or notes. The bonds or notes will be special obligations of the Authority payable

exclusively from loan repayments under one or more loan agreements with the Department, such

loan repayments to be subject to annual appropriation by the General Assembly and derived from

toll revenue or such other revenue source as the General Assembly shall designate from time to

time. The proceeds of such bonds or notes shall be used for the construction, engineering, design,

maintenance, operation or reconstruction of Rhode Island's system of bridges, as well as finance

costs, including, but not limited to, costs of issuance, credit enhancement, legal counsel and

underwriter fees and expenses and other costs associated with the issuance of the bonds or notes,

The Authority's maximum liability will be limited to loan repayments received under one or more

loan agreements; and be it further

     RESOLVED, That the General Assembly hereby approves any other contracts or

agreements entered into to further the objectives of chapter 13 of title 42, including but not

LC002897 - Page 31 of 35

limited to, availability payment contracts; and be it further

     RESOLVED, That the total amount of debt approved to be issued and outstanding in the

aggregate shall be not more than six hundred million dollars ($600,000,000), including five

hundred million dollars ($500,000,000) for the bridge replacement, reconstruction and

maintenance fund and no more than one hundred million dollars ($100,000,000) for a debt service

reserve fund, capitalized interest, associated costs of financing and toll facilities as required.

Neither the obligations issued by the Authority nor the loan agreements to be entered into by the

Department shall constitute indebtedness of the State or a debt for which the full faith and credit

of the State is pledged or a moral obligation thereof; and be it further

     RESOLVED, That the General Assembly hereby provides approval for the Department to

enter into one or more loan agreements described above. Payments under any such loan

agreement shall be subject to annual appropriation by the General Assembly and derived

exclusively from toll revenue collected by the Department, interest earnings thereon, and other

revenue sources designated by the General Assembly from time to time; and be it further

     RESOLVED, That this joint resolution shall take effect immediately upon its passage by

this General Assembly.

     SECTION 12. This section consists of a Joint Resolution submitted pursuant to Rhode

Island General Laws § 35-18-1, et seq.

     WHEREAS, The Rhode Island Department of Transportation ("RIDOT") has undertaken

five (5) major transportation projects, and these projects were either substantially completed or

nearing completion in the year 2015; and

     WHEREAS, The construction of these projects was deemed critical in order to preserve

and maintain the public safety and continued economic success and viability of the State of

Rhode Island, its ports and infrastructure; and

     WHEREAS, RIDOT explored various options to finance the costs of the five (5) major

transportation projects and determined that the federal-aid financing program authorized in

federal law by Section 311 of the National Highway System Designation Act of 1995 and

commonly referred to as the Grant Anticipation Revenue Vehicle Program ("GARVEE

Program") represented the best financing mechanism for the State of Rhode Island inasmuch as

the GARVEE Program accelerated the funding and construction of the five (5) major

transportation projects; and

     WHEREAS, The General Assembly, in Chapter 376, Article 36, Section 8 of the Rhode

Island Public Laws of 2003, authorized the Rhode Island Economic Development Corporation,

now the Rhode Island Commerce Corporation (Commerce Corporation), to issue bonds

LC002897 - Page 32 of 35

("GARVEE Bonds") or other debt instruments on behalf of RIDOT and such GARVEE Bonds

are secured by future appropriations for federal-aid transportation projects whereby such amounts

are used to cover an assortment of bond-related costs, including principal and interest payments,

issuance costs, insurance, and other costs incidental to a financing; and

     WHEREAS, GARVEE Bonds may be issued as special, limited obligations payable

solely from federal transportation funds, subject to annual appropriation by the State, without a

full faith and credit pledge by the State; and the holders of the GARVEE Bonds may not look to

any other revenues of the Commerce Corporation, the State or RIDOT for the payment of the

GARVEE Bonds; and

     WHEREAS, The original Public Corporation Debt Management authorization in Article

36 of the FY2004 Budget as Enacted included a total of $709.6 million in GARVEE funding to

be distributed across five projects, as follows: $126.2 million for the Sakonnet River Bridge;

$348.3 million for the Route I-195 Relocation; $85.4 million for the Washington Bridge; $42.5

million for the Freight Rail Improvement Program (FRIP), and $107.2 million for Route 403; and

     WHEREAS, Interest rates are at historical lows and the existing revenue available to

RIDOT is insufficient to fund the necessary program to replace, reconstruct, and maintain Rhode

Island's bridges and otherwise bring the State's transportation infrastructure into a state of good

repair ; and

     WHEREAS, It would be in the best interests of the State to maximize all potential

sources of revenue to provide a more robust infrastructure program; now, therefore be it

     RESOLVED AND ENACATED, That the Governor of the State of Rhode Island or the

Director of the Rhode Island Department of Transportation or the Director of the Rhode Island

Department of Administration or the Chief Executive Officer or the Chief Operating Officer of

the Commerce Corporation each be and each hereafter are, acting singly, authorized and

empowered by the Rhode Island General Assembly to enter into a financing lease, guarantee, loan

and trust agreement, indenture or other obligations or contracts or agreements and to take such

other actions as such official shall deem necessary or appropriate in order to issue or facilitate the

refinancing and restructuring by the Commerce Corporation of the previously issued GARVEE

Bonds pursuant to the authorization granted in Chapter 376, Article 36, Section 8 of the Rhode

Island Public Laws of 2003; and be it further

     RESOLVED, That the Commerce Corporation or any subsidiary thereof or other

instrumentality, agency or quasi-public corporation otherwise authorized and empowered to

refinance and restructure the bonds specified in this Joint Resolution each be and each hereafter

are acting singly, authorized and empowered by the Rhode Island General Assembly to provide

LC002897 - Page 33 of 35

for the necessary security for such bonds consistent with the provisions of this Joint Resolution

and Act, including any action to pledge, assign or otherwise transfer the right to receive all or any

portion of future FHWA appropriations for federal-aid transportation projects or other revenues

permitted by the laws of the State of Rhode Island to secure or provide for the payment of any

such GARVEE or other bonds; and be it further

     RESOLVED, That notwithstanding the amount of total debt service referenced in

Chapter 376, Article 36, Section 8 of the Rhode Island Public Laws of 2003 and Chapter 241,

Article 7, Section 5 of the Rhode Island Public Laws of 2012, any refinancing and restructuring

may be structured to provide a net benefit to RIDOT with the approval of the Governor; and be it

further

     RESOLVED, That no other changes in allocation or expenditure are authorized beyond

the amendments included in this Joint Resolution; and be it further

     RESOLVED, That this General Assembly hereby approves refinancing and restructuring

of the existing GARVEE bonds in order to provide funding for critical and immediate

transportation infrastructure needs and be it further.

     RESOLVED, That this joint resolution shall take effect immediately upon its passage by

this General Assembly.

     SECTION 13. This act shall take effect upon passage with the exception of Sections 1, 3,

7, 8, 9, and 10 which shall take effect for the tax year beginning on or after January 1, 2017.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- BRIDGE AND TURNPIKE

AUTHORITY -- TOLLS

***

     This act would allow the Rhode Island department of transportation to assess a toll on

large commercial trucks, defined as vehicles in Class 8 through Class 13 of the Federal Highway

Administration (FHWA) vehicle classification schedule. Tolls would be assessed through

electronic toll collection methodologies and would be allocated to the replacement,

reconstruction, and maintenance of Rhode Island bridges. In order to save future costs, this act

would also allow for the pledge of toll revenues and issuance of revenue bonds through the Rhode

Island turnpike and bridge authority (RITBA) to advance the bridge replacement, reconstruction,

and maintenance program. Furthermore, the act would permit refinancing and restructuring of the

grant anticipation revenue vehicle (GARVEE) bond debt, originally authorized by the general

assembly in 2003. The refinancing and restructuring would result in the availability of additional

federal funds for immediate transportation infrastructure needs.

     The rebate, tax credit, and grant programs are designed to support economic development

in Rhode Island. The department of revenue will administer the funds available in the most

equitable fashion possible across the programs. Multiple programs allow multiple avenues of

support depending on the recipient's level of need and economic value.

     This act would take effect upon passage with the exception of Sections 1, 3, 7, 8, 9, and

10 which would take effect for the tax year beginning on or after January 1, 2017.

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