H5175

	2017 -- H 5175
	========
	LC000840
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	STATE OF RHODE ISLAND
	IN GENERAL ASSEMBLY
	JANUARY SESSION, A.D. 2017
	____________
	A N A C T
	RELATING TO MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR
	THE FISCAL YEAR ENDING JUNE 30, 2018

	Introduced By: Representative Marvin L. Abney
	Date Introduced: January 19, 2017
	Referred To: House Finance
	(Governor)
	It is enacted by the General Assembly as follows:
1	ARTICLE 1 RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2018
2	ARTICLE 2 RELATING TO ECONOMIC DEVELOPMENT AND TAX CREDITS
3	ARTICLE 3 RELATING TO RHODE ISLAND PROMISE SCHOLARSHIP
4	ARTICLE 4 RELATING TO DIVISION OF MOTOR VEHICLES
5	ARTICLE 5 RELATING TO GOVERNMENT REORGANIZATION
6	ARTICLE 6 RELATING TO GOVERNMENTAL REFORM
7	ARTICLE 7 RELATING TO STATE FUNDS
8	ARTICLE 8 RELATING TO TAX AND REVENUES
9	ARTICLE 9 RELATING TO REMOTE SELLERS SALES TAX COLLECTION
10	ARTICLE 10 RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT
11	OF FY 2017
12	ARTICLE 11 RELATING TO THE MOTOR VEHICLE EXCISE TAX
13	ARTICLE 12 RELATING TO MEDICAID REFORM ACT OF 2008 RESOLUTION
14	ARTICLE 13 RELATING TO MEDICAL ASSISTANCE AND UNCOMPENSATED CARE
15	ARTICLE 14 RELATING TO LICENSING OF HOSPITAL FACILITIES
16	ARTICLE 15 RELATING TO BEHAVIORAL HEALTHCARE, DEVELOPMENTAL
17	DISABILITIES AND HOSPITALS – MAINTENANCE OF EFFORT
18	ARTICLE 16 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

1	ARTICLE 17 RELATING TO LEASED OFFICE AND OPERATING SPACE
2	ARTICLE 18 RELATING TO EDUCATION AID
3	ARTICLE 19 RELATING TO ELECTRIC VEHICLE REBATE PROGRAM
4	ARTICLE 20 RELATING TO MINIMUM WAGES
5	ARTICLE 21 RELATING TO DEPARTMENT OF LABOR AND TRAINING FEES
6	AND FINES
7	ARTICLE 22 RELATING TO LEAD POISONING PREVENTION PROGRAMS
8	ARTICLE 23 RELATING TO BEHAVIORAL HEALTHCARE, DEVELOPMENTAL
9	DISABILITIES AND HOSPITALS - WAGES
10	ARTICLE 24 RELATING TO EFFECTIVE DATE
	LC000840 - Page 2 of 319
1	ARTICLE 1
2	RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2018
3	SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained
4	in this act, the following general revenue amounts are hereby appropriated out of any money in
5	the treasury not otherwise appropriated to be expended during the fiscal year ending June 30,
6	2018. The amounts identified for federal funds and restricted receipts shall be made available
7	pursuant to section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For
8	the purposes and functions hereinafter mentioned, the state controller is hereby authorized and
9	directed to draw his or her orders upon the general treasurer for the payment of such sums or such
10	portions thereof as may be required from time to time upon receipt by him or her of properly
11	authenticated vouchers.
12	Administration
13	Central Management
14	General Revenues 2,520,212
15	Total – Central Management 2,520,212
16	Legal Services
17	General Revenues 2,300,956
18	Total – Legal Services 2,300,956
19	Accounts and Control
20	General Revenues 4,130,796
21	Restricted Receipt – OPEB Board Administration 225,000
22	Total – Accounts and Control 4,355,796
23	Office of Management and Budget
24	General Revenues 8,086,236
25	Restricted Receipts 300,000
26	Other Funds 1,719,494
27	Total – Office of Management and Budget 10,105,730
28	Purchasing
29	General Revenues 3,072,789
30	Other Funds 233,525
31	Total – Purchasing 3,306,314
32	Human Resources
33	General Revenues 8,602,573
34	Federal Funds 1,068,199
	LC000840 - Page 3 of 319
1	Restricted Receipts 637,889
2	Other Funds 1,618,848
3	Total – Human Resources 11,927,509
4	Personnel Appeal Board
5	General Revenues 145,130
6	Total – Personnel Appeal Board 145,130
7	Information Technology
8	General Revenues 22,146,644
9	Federal Funds 6,655,755
10	Restricted Receipts 10,777,319
11	Other Funds 2,699,001
12	Total – Information Technology 42,278,719
13	Library and Information Services
14	General Revenues 1,479,475
15	Federal Funds 1,157,870
16	Restricted Receipts 5,500
17	Total – Library and Information Services 2,642,845
18	Planning
19	General Revenues 1,271,483
20	Federal Funds 1,000
21	Other Funds
22	Air Quality Modeling 24,000
23	Federal Highway – PL Systems Planning 3,172,497
24	FTA – Metro Planning Grant 1,033,131
25	Total Other Funds 4,229,628
26	Total – Planning 5,502,111
27	General
28	General Revenues
29	Miscellaneous Grants/Payments 50,000
30	Provided that this amount be allocated to City Year for the Whole School Child Program,
31	which provides individualized support to at-risk students.
32	Torts– Courts/Awards 400,000
33	State Employees/Teachers Retiree Health Subsidy 2,321,057
34	OER Electric Vehicle Rebates 250,000
	LC000840 - Page 4 of 319
1	Resource Sharing and State Library Aid 9,362,072
2	Library Construction Aid 2,320,289
3	General Revenues Total 14,703,418
4	Restricted Receipts 700,000
5	Other Funds
6	Rhode Island Capital Plan Funds
7	Security Measures State Buildings 500,000
8	Energy Efficiency Improvements 1,000,000
9	Cranston Street Armory 850,000
10	Capitol Hill Campus Projects 8,450,000
11	Environmental Projects 650,000
12	Zambarano Building Rehabilitation 6,085,000
13	State Facility Projects 3,665,000
14	Pastore Center Campus Projects 8,905,000
15	State House Asset Protection Projects 3,250,000
16	. Big River Management Area 100,000
17	Veterans Memorial Auditorium 205,000
18	RI Convention Center Authority 1,000,000
19	Dunkin Donuts Center 1,850,000
20	McCoy Stadium 101,761
21	Virks Building Renovations 5,236,000
22	Accessibility – Facility Renovations 1,000,000
23	Other Funds Total 42,847,761
24	Total – General 58,251,179
25	Debt Service Payments
26	General Revenues 144,357,135
27	Out of the general revenue appropriations for debt service, the General Treasurer is
28	authorized to make payments for the I-195 Redevelopment District Commission loan up to the
29	maximum debt service due in accordance with the loan agreement.
30	Federal Funds 1,870,830
31	Other Funds
32	Transportation Debt Service 39,356,516
33	Investment Receipts – Bond Funds 100,000
34	Other Funds Total 39,456,516
	LC000840 - Page 5 of 319
1	Total - Debt Service Payments 185,684,481
2	Energy Resources
3	Federal Funds 723,171
4	Restricted Receipts 11,543,190
5	Total – Energy Resources 12,266,361
6	Rhode Island Health Exchange
7	General Revenue 2,625,841
8	Federal Funds 135,136
9	Restricted Receipts 6,807,845
10	Total – Rhode Island Health Exchange 9,568,822
11	Construction Permitting, Approvals and Licensing
12	General Revenues 2,155,703
13	Restricted Receipts 1,437,870
14	Total –Approvals and Licensing 3,593,573
15	Office of Diversity, Equity & Opportunity
16	General Revenues 1,382,250
17	Other Funds 86,623
18	Total – Office of Diversity, Equity & Opportunity 1,468,873
19	Capital Asset Management and Maintenance
20	General Revenues 34,530,313
21	Federal Funds 1,603,917
22	Restricted Receipts 660,725
23	Other Funds 3,874,844
24	Total – Capital Asset Management and Maintenance 40,669,799
25	Personnel and Operational Reforms
26	General Revenues (5,430,124)
27	Total- Personnel and Operational Reforms (5,430,124)
28	Grand Total – General Revenues – Administration 248,080,830
29	Grand Total – Administration 391,158,286
30	Business Regulation
31	Central Management
32	General Revenues 1,396,420
33	Total – Central Management 1,396,420
34	Banking Regulation
	LC000840 - Page 6 of 319
1	General Revenues 1,843,062
2	Restricted Receipts 50,000
3	Total – Banking Regulation 1,893,062
4	Securities Regulation
5	General Revenues 974,364
6	Restricted Receipts 15,000
7	Total – Securities Regulation 989,364
8	Insurance Regulation
9	General Revenues 4,025,436
10	Restricted Receipts 1,826,495
11	Total – Insurance Regulation 5,851,931
12	Office of the Health Insurance Commissioner
13	General Revenues 1,614,318
14	Federal Funds 892,213
15	Restricted Receipts 228,768
16	Total – Office of the Health Insurance Commissioner 2,735,299
17	Board of Accountancy
18	General Revenues 6,000
19	Total – Board of Accountancy 6,000
20	Commercial Licensing, Racing & Athletics
21	General Revenues 893,038
22	Restricted Receipts 1,778,614
23	Total – Commercial Licensing, Racing & Athletics 2,671,652
24	Boards for Design Professionals
25	General Revenues 362,455
26	Total – Boards for Design Professionals 362,455
27	Grand Total – General Revenues – Business Regulation 11,115,093
28	Grand Total – Business Regulation 15,906,183
29	Executive Office of Commerce
30	Central Management
31	General Revenues 1,363,714
32	Total – Central Management 1,363,714
33	Housing and Community Development
34	General Revenues 642,391
	LC000840 - Page 7 of 319
1	Federal Funds 17,890,642
2	Restricted Receipts 4,159,382
3	Total – Housing and Community Development 22,692,415
4	Quasi–Public Appropriations
5	General Revenues
6	Rhode Island Commerce Corporation 7,474,514
7	Airport Impact Aid 1,025,000
8	Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be
9	distributed to each airport serving more than 1,000,000 passengers based upon its percentage of
10	the total passengers served by all airports serving more the 1,000,000 passengers. Forty percent
11	(40%) of the first $1,000,000 shall be distributed based on the share of landings during the
12	calendar year 2017 at North Central Airport, Newport-Middletown Airport, Block Island Airport,
13	Quonset Airport, T.F. Green Airport and Westerly Airport, respectively. The Rhode Island
14	Commerce Corporation shall make an impact payment to the towns or cities in which the airport
15	is located based on this calculation. Each community upon which any parts of the above airports
16	are located shall receive at least $25,000.
17	STAC Research Alliance 1,150,000
18	Innovative Matching Grants/Internships 1,000,000
19	I-195 Redevelopment District Commission 761,000
20	Chafee Center at Bryant 376,200
21	RI College and University Research Collaborative 150,000
22	Polaris Manufacturing Grant 550,000
23	National Security Infrastructure Fund 200,000
24	General Revenues Total 12,686,714
25	Other Funds
26	Rhode Island Capital Plan Funds
27	I-195 Commission 300,000
28	Quonset Piers 2,600,000
29	Other Funds Total 2,900,000
30	Total – Quasi–Public Appropriations 15,586,714
31	Economic Development Initiatives Fund
32	General Revenues
33	Innovation Initiative 2,500,000
34	I-195 Redevelopment Fund 10,100,000
	LC000840 - Page 8 of 319
1	Main Street RI Streetscape Improvements 1,250,000
2	Rebuild RI Tax Credit Fund 20,000,000
3	General Revenues Total 33,850,000
4	Total – Economic Development Initiatives Fund 33,850,000
5	Commerce Programs
6	General Revenues
7	Wavemaker Fellowship 1,600,000
8	Air Service Development 500,000
9	P-tech 1,200,000
10	General Revenues Total 3,300,000
11	Total – Commerce Programs 3,300,000
12	Grand Total - General Revenues - Commerce 51,842,819
13	Grand Total – Executive Office of Commerce 76,792,843
14	Labor and Training
15	Central Management
16	General Revenues 134,315
17	Restricted Receipts 687,604
18	Other Funds
19	Rhode Island Capital Plan Funds
20	Center General Asset Protection 1,130,000
21	Other Funds Total 1,130,000
22	Total – Central Management 1,951,919
23	Workforce Development Services
24	General Revenues 704,517
25	Federal Funds 21,320,978
26	Restricted Receipts 12,601,385
27	Other Funds 124,643
28	Total – Workforce Development Services 34,751,523
29	Workforce Regulation and Safety
30	General Revenues 3,468,398
31	Total – Workforce Regulation and Safety 3,468,398
32	Income Support
33	General Revenues 4,046,748
34	Federal Funds 14,138,705
	LC000840 - Page 9 of 319
1	Restricted Receipts 2,100,020
2	Other Funds
3	Temporary Disability Insurance Fund 197,566,522
4	Employment Security Fund 161,220,000
5	Other Funds 40,418
6	Other Funds Total 358,826,940
7	Total – Income Support 379,112,413
8	Injured Workers Services
9	Restricted Receipts 8,701,434
10	Total – Injured Workers Services 8,701,434
11	Labor Relations Board
12	General Revenues 397,335
13	Total – Labor Relations Board 397,335
14	Grand Total – General Revenues Labor and Training 8,751,313
15	Grand Total – Labor and Training 428,383,022
16	Department of Revenue
17	Director of Revenue
18	General Revenues 1,244,266
19	Total – Director of Revenue 1,244,266
20	Office of Revenue Analysis
21	General Revenues 788,009
22	Total – Office of Revenue Analysis 788,009
23	Lottery Division
24	Other Funds 375,039,436
25	Total – Lottery Division 375,039,436
26	Municipal Finance
27	General Revenues 2,511,025
28	Total – Municipal Finance 2,511,025
29	Taxation
30	General Revenues 22,275,987
31	Federal Funds 1,361,360
32	Restricted Receipts 945,239
33	Other Funds
34	Motor Fuel Tax Evasion 176,148
	LC000840 - Page 10 of 319
1	Temporary Disability Insurance Fund 1,004,487
2	Other Funds Total 1,180,635
3	Total – Taxation 25,763,221
4	Registry of Motor Vehicles
5	General Revenues 24,045,098
6	All unexpended or unencumbered balances as of June 30, 2018 relating to license plate
7	reissuance are hereby re-appropriated to fiscal year 2019.
8	Federal Funds 206,140
9	Restricted Receipts 2,094,763
10	Total – Registry of Motor Vehicles 26,346,001
11	State Aid
12	General Revenues
13	Distressed Communities Relief Fund 12,384,458
14	Payment in Lieu of Tax Exempt Properties 45,205,606
15	Motor Vehicle Excise Tax Payments 10,000,000
16	Property Revaluation Program 937,228
17	General Revenues Total 68,527,292
18	Restricted Receipts 922,013
19	Total – State Aid 69,449,305
20	Grand Total – General Revenues - Revenue 119,391,677
21	Grand Total – Revenue 501,141,263
22	Legislature
23	General Revenues 42,522,507
24	Restricted Receipts 1,729,957
25	Grand Total – Legislature 44,252,464
26	Lieutenant Governor
27	General Revenues 1,084,217
28	Grand Total – Lieutenant Governor 1,084,217
29	Secretary of State
30	Administration
31	General Revenues 3,382,625
32	Total – Administration 3,382,625
33	Corporations
34	General Revenues 2,224,127
	LC000840 - Page 11 of 319
1	Total – Corporations 2,224,127
2	State Archives
3	General Revenues 87,150
4	Restricted Receipts 414,478
5	Total – State Archives 501,628
6	Elections and Civics
7	General Revenues 1,906,470
8	Total – Elections and Civics 1,906,470
9	State Library
10	General Revenues 723,385
11	Total – State Library 723,385
12	Provided that $125,000 be allocated to support the Rhode Island Historical Society
13	pursuant to Rhode Island General Law, Section 29-2-1 and $18,000 be allocated to support the
14	Newport Historical Society, pursuant to Rhode Island General Law, Section 29-2-2.
15	Office of Public Information
16	General Revenues 587,562
17	Receipted Receipts 25,000
18	Total – Office of Public Information 612,562
19	Grand Total – General Revenues – Secretary of State 8,911,319
20	Grand Total – Secretary of State 9,350,797
21	General Treasurer
22	Treasury
23	General Revenues 2,456,017
24	Federal Funds 290,987
25	Other Funds
26	Temporary Disability Insurance Fund 226,879
27	Tuition Savings Program – Administration 323,363
28	Transfers to Division of Higher Education Assistance 8,000,000
29	Other Funds Total 8,550,242
30	Total – General Treasurer 11,297,246
31	State Retirement System
32	Restricted Receipts
33	Admin Expenses – State Retirement System 9,126,238
34	Retirement – Treasury Investment Operations 1,545,880
	LC000840 - Page 12 of 319
1	Defined Contribution – Administration 178,238
2	Total – State Retirement System 10,850,356
3	Unclaimed Property
4	Restricted Receipts 23,903,500
5	Total – Unclaimed Property 23,903,500
6	Crime Victim Compensation Program
7	General Revenues 242,675
8	Federal Funds 599,350
9	Restricted Receipts 1,132,319
10	Total – Crime Victim Compensation Program 1,974,344
11	Grand Total – General Revenues – General Treasurer 2,698,692
12	Grand Total – General Treasurer 48,025,446
13	Board of Elections
14	General Revenues 1,548,735
15	Grand Total – Board of Elections 1,548,735
16	Rhode Island Ethics Commission
17	General Revenues 1,665,873
18	Grand Total – Rhode Island Ethics Commission 1,665,873
19	Office of Governor
20	General Revenues
21	General Revenues 5,147,554
22	Contingency Fund 250,000
23	General Revenues Total 5,397,554
24	Grand Total – Office of Governor 5,397,554
25	Commission for Human Rights
26	General Revenues 1,258,074
27	Federal Funds 432,028
28	Grand Total – Commission for Human Rights 1,690,102
29	Public Utilities Commission
30	Federal Funds 129,225
31	Restricted Receipts 9,604,152
32	Grand Total – Public Utilities Commission 9,733,377
33	Office of Health and Human Services
34	Central Management
	LC000840 - Page 13 of 319
1	General Revenues 26,939,377
2	Federal Funds 76,682,149
3	Restricted Receipts 7,942,269
4	Total – Central Management 111,560,795
5	Medical Assistance
6	General Revenues
7	Managed Care 289,496,481
8	Hospitals 89,905,325
9	Nursing Facilities 82,816,651
10	Home and Community Based Services 34,381,896
11	Other Services 69,811,179
12	Pharmacy 64,739,935
13	Rhody Health 280,547,143
14	General Revenues Total 911,698,610
15	Federal Funds
16	Managed Care 366,390,881
17	Hospitals 97,052,248
18	Nursing Facilities 87,377,865
19	Home and Community Based Services 36,275,513
20	Other Services 530,209,537
21	Pharmacy (859,173)
22	Rhody Health 294,154,472
23	Special Education 19,000,000
24	Federal Funds Total 1,429,601,343
25	Restricted Receipts 13,185,000
26	Total – Medical Assistance 2,354,484,953
27	Grand Total – General Revenues - OHHS 938,634,987
28	Grand Total – Office of Health and Human Services 2,466,045,748
29	Children, Youth, and Families
30	Central Management
31	General Revenues 7,157,480
32	Federal Funds 2,831,574
33	Total – Central Management 9,989,054
34	Children's Behavioral Health Services
	LC000840 - Page 14 of 319
1	General Revenues 5,099,171
2	Federal Funds 5,447,794
3	Total – Children's Behavioral Health Services 10,546,965
4	Juvenile Correctional Services
5	General Revenues 22,824,456
6	Federal Funds 280,282
7	Other Funds
8	Rhode Island Capital Plan Funds
9	Thomas C. Slater Training School Maintenance Bldg 150,000
10	Generators – Rhode Island Training School 950,000
11	Other Funds Total` 1,100,000
12	Total – Juvenile Correctional Services 24,204,738
13	Child Welfare
14	General Revenues
15	General Revenues 114,574,555
16	Federal Funds 46,455,509
17	Restricted Receipts 3,098,931
18	Total – Child Welfare 164,129,195
19	Higher Education Incentive Grants
20	General Revenues
21	Total – Higher Education Incentive Grants 200,000
22	Grand Total – General Revenues - DYCF 149,855,862
23	Grand Total – Children, Youth, and Families 209,069,952
24	Health
25	Central Management
26	General Revenues 789,523
27	Federal Funds 3,646,373
28	Restricted Receipts 4,476,359
29	Total – Central Management 8,912,255
30	Community Health and Equity
31	General Revenues 1,191,032
32	Federal Funds 71,790,291
33	Restricted Receipts 32,202,603
34	Total – Community Health and Equity 105,183,926
	LC000840 - Page 15 of 319
1	Environmental Health
2	General Revenues 5,100,209
3	Federal Funds 7,325,459
4	Restricted Receipts 830,142
5	Total – Environmental Health 13,255,810
6	Health Laboratories and Medical Examiner
7	General Revenues 10,136,655
8	Federal Funds 2,034,544
9	Total – Health Laboratories and Medical Examiner 12,171,199
10	Customer Services
11	General Revenues 6,526,439
12	Federal Funds 4,139,231
13	Restricted Receipts 1,087,647
14	Total – Customer Services 11,807,317
15	Policy, Information and Communications
16	General Revenues 962,260
17	Federal Funds 2,354,457
18	Restricted Receipts 872,764
19	Total – Policy, Information and Communications 4,189,481
20	Preparedness, Response, Infectious Disease & Emergency Services
21	General Revenues 1,619,131
22	Federal Funds 14,028,957
23	Total – Preparedness, Response, Infectious Disease &
24	Emergency Services 15,648,088
25	Grand Total – General Revenues - Health 26,325,249
26	Grand Total - Health 171,168,076
27	Human Services
28	Central Management
29	General Revenues 3,410,108
30	Of this amount, $300,000 is to support the Domestic Violence Prevention Fund to
31	provide direct services through the Coalition Against Domestic Violence, $250,000 is to support
32	Project Reach activities provided by the RI Alliance of Boys and Girls Club, $217,000 is for
33	outreach and supportive services through Day One, $175,000 is for food collection and
34	distribution through the Rhode Island Community Food Bank, $300,000 for services provided to
	LC000840 - Page 16 of 319
1	the homeless at Crossroad Rhode Island, and $520,000 for the Community Action Fund.
2	Federal Funds 3,973,906
3	Restricted Receipts 507,991
4	Total – Central Management 7,892,005
5	Child Support Enforcement
6	General Revenues 3,381,319
7	Federal Funds 7,868,794
8	Total – Child Support Enforcement 11,250,113
9	Individual and Family Support
10	General Revenues 20,879,984
11	Federal Funds 98,430,476
12	Restricted Receipts 386,650
13	Other Funds
14	Intermodal Surface Transportation Fund 4,428,478
15	Rhode Island Capital Plan Funds
16	Blind Vending Facilities 165,000
17	Other Funds Total 4,593,478
18	Total – Individual and Family Support 124,290,588
19	Office of Veterans' Affairs
20	General Revenues 20,601,826
21	Of this amount $200,000 to provide support services through Veteran’s organization.
22	Federal Funds 59,211,211
23	Restricted Receipts 2,241,167
24	Total – Office Veterans' Affairs 82,054,204
25	Health Care Eligibility
26	General Revenues 6,045,119
27	Federal Funds 8,001,670
28	Total – Health Care Eligibility 14,046,789
29	Supplemental Security Income Program
30	General Revenues 18,454,040
31	Total – Supplemental Security Income Program 18,454,040
32	Rhode Island Works
33	General Revenues 14,412,819
34	Federal Funds 77,822,727
	LC000840 - Page 17 of 319
1	Total – Rhode Island Works 92,235,546
2	State Funded Programs
3	General Revenues 1,648,088
4	Of this appropriation, $210,000 shall be used for hardship contingency payments.
5	Federal Funds 282,060,431
6	Total – State Funded Programs 283,708,519
7	Elderly Affairs
8	General Revenues
9	General Revenues 6,512,295
10	Of this amount, $140,000 to provide elder services, including respite, through the
11	Diocese of Providence, $40,000 for ombudsman services provided by the Alliance for Long Term
12	in accordance with RIGL 42-66.7, $85,000 for security for housing for the elderly in accordance
13	with RIGL 42-66.1-3, $400,000 for Senior Center Support and $580,000 for elderly nutrition, of
14	which $530,000 is for Meals on Wheels.
15	RIPAE 79,043
16	Care and Safety of the Elderly 300,850
17	General Revenues – Total 6,892,188
18	Federal Funds 12,763,393
19	Restricted Receipts 134,428
20	Total – Elderly Affairs 19,790,009
21	Grand Total – General Revenues – Human Services 95,725,491
22	Grand Total – Human Services 653,721,813
23	Behavioral Healthcare, Developmental Disabilities, and Hospitals
24	Central Management
25	General Revenues 1,655,306
26	Total – Central Management 1,655,306
27	Hospital and Community System Support
28	General Revenues 2,067,954
29	Rhode Island Capital Plan Funds
30	Medical Center Rehabilitation 250,000
31	Community Facilities Fire Code 400,000
32	Other Funds Total 650,000
33	Total – Hospital and Community System Support 2,717,954
34	Services for the Developmentally Disabled
	LC000840 - Page 18 of 319
1	General Revenues 123,792,106
2	Federal Funds 129,943,094
3	Restricted Receipts 1,872,560
4	Other Funds
5	Rhode Island Capital Plan Funds
6	DD Private Waiver 100,000
7	Regional Center Repair/Rehabilitation 500,000
8	MR Community Facilities/Access to Independence 500,000
9	Other Funds Total 1,100,000
10	Total – Services for the Developmentally Disabled 256,707,760
11	Behavioral Healthcare Services
12	General Revenues 4,543,780
13	Federal Funds 21,601,652
14	Of this federal funding, $900,000 shall be expended on the Municipal Substance Abuse
15	Task Forces and $128,000 shall be expended on NAMI of RI.
16	Restricted Receipts 100,000
17	Other Funds
18	Rhode Island Capital Plan Funds
19	MH Community Facilities Repair 200,000
20	MH Housing Development Thresholds 800,000
21	Substance Abuse Asset Protection 150,000
22	Other Funds Total 1,150,000
23	Total – Behavioral Healthcare Services 27,395,432
24	Hospital and Community Rehabilitative Services
25	General Revenues 47,586,386
26	Federal Funds 49,202,498
27	Restricted Receipts 4,936,595
28	Other Funds
29	Rhode Island Capital Plan Funds
30	Zambarano Buildings and Utilities 280,000
31	Hospital Consolidation 2,310,000
32	Eleanor Slater HVAC/Elevators 250,000
33	MR Community Facilities 1,025,000
34	Hospital Equipment 300,000
	LC000840 - Page 19 of 319
1	Other Funds Total 4,165,000
2	Total - Hospital and Community Rehabilitative Services 105,890,479
3	Grand Total – General Revenues - BHDDH 179,645,532
4	Grand Total – Behavioral Healthcare, Developmental
5	Disabilities, and Hospitals 394,366,931
6	Office of the Child Advocate
7	General Revenues 669,708
8	Federal Funds 144,621
9	Grand Total – Office of the Child Advocate 814,329
10	Commission on the Deaf and Hard of Hearing
11	General Revenues 498,710
12	Restricted Receipts 129,200
13	Grand Total – Comm. On Deaf and Hard of Hearing 627,910
14	Governor’s Commission on Disabilities
15	General Revenues 454,938
16	Federal Funds 343,542
17	Restricted Receipts 43,710
18	Total – Governor’s Commission on Disabilities 842,190
19	Office of the Mental Health Advocate
20	General Revenues 549,563
21	Grand Total – Office of the Mental Health Advocate 549,563
22	Elementary and Secondary Education
23	Administration of the Comprehensive Education Strategy
24	General Revenues 20,801,907
25	Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s
26	Hospital pursuant to RIGL 17-7-20 and that $245,000 be allocated to support child opportunity
27	zones through agreements with the Department of Elementary and Secondary Education to
28	strengthen education, health and social services for students and their families as a strategy to
29	accelerate student achievement.
30	Federal Funds 201,868,995
31	Restricted Receipts
32	Restricted Receipts 1,275,662
33	HRIC Adult Education Grants 3,500,000
34	Restricted Receipts Total 4,775,662
	LC000840 - Page 20 of 319
1	Total – Admin. of the Comprehensive Ed. Strategy 227,446,564
2	Davies Career and Technical School
3	General Revenues 13,358,058
4	Federal Funds 1,376,685
5	Restricted Receipts 3,716,922
6	Other Funds
7	Rhode Island Capital Plan Funds
8	Davies HVAC 2,499,000
9	Davies Asset Protection 150,000
10	Davies Advanced Manufacturing 3,650,000
11	Other Funds Total 6,299,000
12	Total – Davies Career and Technical School 24,750,665
13	RI School for the Deaf
14	General Revenues 6,359,979
15	Federal Funds 254,320
16	Restricted Receipts 777,791
17	Other Funds
18	School for the Deaf – Fee for Service 59,000
19	Total – RI School for the Deaf 7,451,090
20	Metropolitan Career and Technical School
21	General Revenues 9,342,007
22	Other Funds
23	Rhode Island Capital Plan Funds
24	MET Asset Protection 250,000
25	Other Funds Total
26	Total – Metropolitan Career and Technical School 9,592,007
27	Education Aid
28	General Revenues 888,743,875
29	Restricted Receipts 20,184,044
30	Other Funds
31	Permanent School Fund – Education Aid 300,000
32	Total – Education Aid 909,227,919
33	Central Falls School District
34	General Revenues 39,351,304
	LC000840 - Page 21 of 319
1	Total – Central Falls School District 39,351,304
2	School Construction Aid
3	General Revenues
4	School Housing Aid 70,907,110
5	School Building Authority Fund 9,092,890
6	Total – School Construction Aid 80,000,000
7	Teachers' Retirement
8	General Revenues 100,659,986
9	Total – Teachers’ Retirement 100,659,986
10	Grand Total – General Revenues – Elementary & Secondary Ed 1,158,617,116
11	Grand Total – Elementary and Secondary Education 1, 398,479,535
12	Public Higher Education
13	Office of the Postsecondary Commissioner
14	General Revenues 22,328,459
15	Provided that $355,000 shall be allocated the Rhode Island Children’s Crusade pursuant
16	to the RIGL 16-70-5 and that $30,000 shall be allocated to Best Buddies Rhode Island to support
17	its programs for children with developmental and intellectual disabilities. It is also provided that
18	$10,000,000 shall be allocated to the Rhode Island Promise Scholarship program and that
19	$500,000 shall be allocated to the Prepare RI Dual Enrollment Fund.
20	Federal Funds
21	Federal Funds 3,707,287
22	Guaranty Agency Administration 5,576,382
23	WaytogoRI Portal 650,000
24	Guaranty Agency Operating Fund-Scholarships & Grants 4,000,000
25	Federal Funds Total 13,933,669
26	Restricted Receipts 1,490,341
27	Other Funds
28	Tuition Savings Program – Dual Enrollment 1,300,000
29	Tuition Savings Program – Scholarships and Grants 6,095,000
30	Nursing Education Center – Operating 5,052,544
31	Total – Office of the Postsecondary Commissioner 50,200,013
32	University of Rhode Island
33	General Revenues
34	General Revenues 75,771,073
	LC000840 - Page 22 of 319
1	Provided that in order to leverage federal funding and support economic development,
2	$250,000 shall be allocated to the Small Business Development Center and that $50,000 shall be
3	allocated to Special Olympics Rhode Island to support its mission of providing athletic
4	opportunities for individuals with intellectual and developmental disabilities.
5	Debt Service 22,657,568
6	RI State Forensics Laboratory 1,201,087
7	General Revenues Total 99,629,728
8	Other Funds
9	University and College Funds 645,715,072
10	Debt – Dining Services 1,007,421
11	Debt – Education and General 3,491,909
12	Debt – Health Services 136,271
13	Debt – Housing Loan Funds 9,984,968
14	Debt – Memorial Union 320,961
15	Debt – Ryan Center 2,423,089
16	Debt – Alton Jones Services 102,964
17	Debt – Parking Authority 1,126,190
18	Debt – Sponsored Research 84,913
19	Debt – Restricted Energy Conservation 810,170
20	Debt – URI Energy Conservation 1,831,837
21	Rhode Island Capital Plan Funds
22	Asset Protection 8,030,000
23	Fine Arts Center Advanced Planning 1,000,000
24	Other Funds Total 676,065,765
25	Total – University of Rhode Island 775,695,493
26	Rhode Island College
27	General Revenues 47,438,791
28	Debt Service 4,867,060
29	General Revenues Total 52,305,851
30	Other Funds
31	University and College Funds 127,503,637
32	Debt – Education and General 1,473,919
33	Debt – Housing 368,262
34	Debt – Student Center and Dining 154,095
	LC000840 - Page 23 of 319
1	Debt – Student Union 235,556
2	Debt – G.O. Debt Service 1,640,974
3	Debt Energy Conservation 592,875
4	Rhode Island Capital Plan Funds
5	Asset Protection 3,458,431
6	Infrastructure Modernization 4,500,000
7	New Residence Hall 3,000,000
8	Academic Building Phase I 6,100,000
9	Other Funds – Total 149,027,749
10	Total – Rhode Island College 201,333,600
11	Community College of Rhode Island
12	General Revenues
13	General Revenues 49,435,710
14	Debt Service 2,082,845
15	General Revenues Total 51,518,555
16	Restricted Receipts 683,649
17	Other Funds
18	University and College Funds 99,588,610
19	CCRI Debt Service – Energy Conservation 805,025
20	Rhode Island Capital Plan Funds
21	Asset Protection 2,799,063
22	Knight Campus Lab Renovation 375,000
23	Knight Campus Renewal 5,000,000
24	Other Funds Total 108,567,698
25	Total – Community College of RI 160,769,902
26	Grand Total – General Revenues – Public Higher Ed 225,782,593
27	Grand Total – Public Higher Education 1,187,999,008
28	RI State Council on the Arts
29	General Revenues
30	Operating Support 780,056
31	Grants 1,165,000
32	Provided that $375,000 be provided to support the operational costs of WaterFire
33	Providence art installations.
34	General Revenues Total 1,945,056
	LC000840 - Page 24 of 319
1	Federal Funds 781,454
2	Other Funds
3	Art for Public Facilities 345,800
4	Other Funds Total 345,800
5	Grand Total – RI State Council on the Arts 3,072,310
6	RI Atomic Energy Commission
7	General Revenues 982,157
8	Other Funds
9	URI Sponsored Research 272,216
10	Rhode Island Capital Plan Funds
11	RINSC Asset Protection 50,000
12	Other Funds Total 322,216
13	Grand Total – RI Atomic Energy Commission 1,304,373
14	RI Historical Preservation and Heritage Commission
15	General Revenues 1,168,706
16	Provided that $30,000 support the operational costs of the Fort Adam Trust’s restoration
17	activities.
18	Federal Funds 860,963
19	Restricted Receipts 427,700
20	Other Funds
21	RIDOT Project Review 80,970
22	Grand Total – RI Historical Preservation and Heritage Comm. 2,538,339
23	Attorney General
24	Criminal
25	General Revenues 16,070,177
26	Federal Funds 1,779,505
27	Restricted Receipts 15,373,382
28	Total – Criminal 33,223,064
29	Civil
30	General Revenues 5,251,678
31	Restricted Receipts 631,559
32	Total – Civil 5,883,237
33	Bureau of Criminal Identification
34	General Revenues 1,670,102
	LC000840 - Page 25 of 319
1	Total – Bureau of Criminal Identification 1,670,102
2	General
3	General Revenues 3,202,794
4	Other Funds
5	Rhode Island Capital Plan Funds
6	Building Renovations and Repairs 150,000
7	Other Funds Total 150,000
8	Total – General 3,352,794
9	Grand Total – General Revenues – Attorney General 26,194,751
10	Grand Total – Attorney General 44,129,197
11	Corrections
12	Central Management
13	General Revenues 9,994,732
14	Federal Funds 3,743
15	Total – Central Management 9,998,475
16	Parole Board
17	General Revenues 1,420,791
18	Federal Funds 120,827
19	Total – Parole Board 1,541,618
20	Custody and Security
21	General Revenues 137,893,460
22	Federal Funds 750,392
23	Restricted Receipts 35,000
24	Total – Custody and Security 138,678,852
25	Institutional Support
26	General Revenues 15,620,367
27	Other Funds
28	Rhode Island Capital Plan Funds
29	Asset Protection 3,922,042
30	Maximum – General Renovations 1,300,000
31	General Renovations Women’s 1,075,000
32	Building State Match – Reintegration Center 150,000
33	ISC Exterior Envelope and HVAC 2,027,455
34	Medium Infrastructure 7,283,688
	LC000840 - Page 26 of 319
1	Other Funds Total 15,758,185
2	Total – Institutional Support 31,378,552
3	Institutional Based Rehab./Population Management
4	General Revenues 9,767,594
5	Federal Funds 584,942
6	Restricted Receipts 44,473
7	Total – Institutional Based Rehab/Population Mgt. 10,397,009
8	Healthcare Services
9	General Revenues
10	Total – Healthcare Services 24,260,253
11	Community Corrections
12	General Revenues 17,861,626
13	Provided that $250,000 be allocated to Crossroads Rhode Island for sex offender
14	discharge planning.
15	Federal Funds 86,980
16	Restricted Receipts 14,895
17	Total – Community Corrections 17,963,501
18	Grand Total – General Revenues - Corrections 216,818,823
19	Grand Total – Corrections 234,218,260
20	Judiciary
21	Supreme Court
22	General Revenues
23	General Revenues 28,306,302
24	Provided however, that no more than $1,183,205 in combined total shall be offset to the
25	Public Defender’s Office, the Attorney General’s Office, the Department of Corrections, the
26	Department of Children, Youth, and Families, and the Department of Public Safety for square-
27	footage occupancy costs in public courthouses and further provided that $230,000 be allocated to
28	the Rhode Island Coalition Against Domestic Violence for the domestic abuse court advocacy
29	project pursuant to RIGL 12-29-7 and that $90,000 be allocated to Rhode Island Legal Services,
30	Inc. to provide housing and eviction defense to indigent individuals.
31	Defense of Indigents 3,803,166
32	General Revenues Total 32,109,468
33	Federal Funds 121,481
34	Restricted Receipts 3,962,969
	LC000840 - Page 27 of 319
1	Other Funds
2	Rhode Island Capital Plan Funds
3	Judicial Complexes - HVAC 900,000
4	Judicial Complexes Asset Protection 950,000
5	Licht Judicial Complex Restoration 750,000
6	Licht Window/Exterior Restoration 500,000
7	Noel Shelled Courtroom Build Out 4,000,000
8	Other Funds Total 7,100,000
9	Total - Supreme Court 43,293,918
10	Judicial Tenure and Discipline
11	General Revenues 146,008
12	Total – Judicial Tenure and Discipline 146,008
13	Superior Court
14	General Revenues 23,146,531
15	Federal Funds 91,739
16	Restricted Receipts 370,781
17	Total – Superior Court 23,609,051
18	Family Court
19	General Revenues 20,462,348
20	Federal Funds 2,908,095
21	Total – Family Court 23,370,443
22	District Court
23	General Revenues 12,681,702
24	Federal Funds 289,829
25	Restricted Receipts 60,000
26	Total - District Court 13,031,531
27	Traffic Tribunal
28	General Revenues 9,468,420
29	Total – Traffic Tribunal 9,468,420
30	Workers' Compensation Court
31	Restricted Receipts 8,118,883
32	Total – Workers’ Compensation Court 8,118,883
33	Grand Total – General Revenues - Judiciary 98,014,477
34	Grand Total – Judiciary 121,038,254
	LC000840 - Page 28 of 319
1	Military Staff
2	General Revenues 2,634,057
3	Federal Funds 27,717,460
4	Restricted Receipts
5	RI Military Family Relief Fund 100,000
6	Counter Drug Asset Forfeiture 29,500
7	Restricted Receipts Total 129,500
8	Other Funds
9	Rhode Island Capital Plan Funds
10	Armory of Mounted Command Roof Replacement 949,775
11	Asset Protection 700,000
12	Burrillville Regional Training Institute 22,150
13	Bristol Readiness Center 125,000
14	Joint Force Headquarters Building 5,900,000
15	Other Funds Total 7,696,925
16	Grand Total – General Revenue 2,634,057
17	Grand Total – Military Staff 38,177,942
18	Public Safety
19	Central Management
20	General Revenues 2,799,505
21	Federal Funds 10,918,463
22	Total – Central Management 13,717,968
23	E-911 Emergency Telephone System
24	General Revenues 5,894,522
25	Total – E-911 Emergency Telephone System 5,894,522
26	State Fire Marshal
27	General Revenues 3,746,842
28	Federal Funds 277,167
29	Restricted Receipts 212,166
30	Other Funds
31	Quonset Development Corporation 72,442
32	Total – State Fire Marshal 4,308,617
33	Security Services
34	General Revenues 24,303,913
	LC000840 - Page 29 of 319
1	Total – Security Services 24,303,913
2	Municipal Police Training Academy
3	General Revenues 299,414
4	Federal Funds 239,365
5	Total – Municipal Police Training Academy 538,779
6	Emergency Management Agency
7	General Revenues 1,734,470
8	Federal Funds 14,775,673
9	Restricted Receipts 450,095
10	Other Funds
11	Rhode Island Capital Plan Fund
12	RI State Communications Network System 1,494,414
13	Other Funds Total 1,494,414
14	Total – Emergency Management Agency 18,454,652
15	State Police
16	General Revenues 66,249,476
17	Federal Funds 3,038,774
18	Restricted Receipts 506,446
19	Other Funds
20	Rhode Island Capital Plan Fund
21	DPS Asset Protection 250,000
22	Training Academy Upgrades 100,000
23	Lottery Commission Assistance 1,495,293
24	Airport Corporation Assistance 150,000
25	Road Construction Reimbursement 2,934,672
26	Weight and Measurement Reimbursement 400,000
27	Other Funds Total 5,329,965
28	Total – State Police 75,124,661
29	Grand Total – General Revenue – Public Safety 105,028,142
30	Grand Total – Public Safety 142,343,112
31	Office of Public Defender
32	General Revenues 12,340,235
33	Federal Funds 97,820
34	Grand Total – Office of Public Defender 12,438,055
	LC000840 - Page 30 of 319
1	Environmental Management
2	Office of the Director
3	General Revenues 6,316,873
4	Of this general revenue amount, $50,000 is appropriated to the Conservation Districts.
5	Restricted Receipts 4,054,487
6	Total – Office of the Director 10,371,360
7	Natural Resources
8	General Revenues 23,842,391
9	Federal Funds 23,024,285
10	Restricted Receipts 4,120,511
11	Other Funds
12	DOT Recreational Projects 1,178,375
13	Blackstone Bikepath Design 2,059,579
14	Transportation MOU 78,350
15	Rhode Island Capital Plan Funds
16	Dams Rehabilitation 2,245,805
17	Fort Adams Trust Rehabilitation 300,000
18	Fort Adams Sailing Improvements/Mid-Park 1,750,000
19	Recreational Facilities Improvements 2,450,000
20	Galilee Piers Upgrade 1,250,000
21	Newport Piers Upgrade 137,500
22	Fish & Wildlife Maintenance Facilities 150,000
23	Greenway Blackstone Valley Park Improvements 359,170
24	Natural Resources Offices/Visitor’s Center 5,500,000
25	Rocky Point Acquisition/Renovations 150,000
26	Marine Infrastructure and Pier Development 500,000
27	State Recreation Building Demolition 100,000
28	Other Funds Total 18,208,779
29	Total – Natural Resources 69,195,966
30	Environmental Protection
31	General Revenues 13,836,536
32	Federal Funds 10,375,027
33	Restricted Receipts 9,321,063
34	Other Funds
	LC000840 - Page 31 of 319
1	Transportation MOU 164,734
2	Total – Environmental Protection 33,697,360
3	Grand Total – General Revenues – Environmental Mgmt. 43,995,800
4	Grand Total – Environmental Management 113,264,686
5	Coastal Resources Management Council
6	General Revenues 2,558,332
7	Federal Funds 1,649,291
8	Restricted Receipts 250,000
9	Other Funds
10	Rhode Island Capital Plan Funds
11	Rhode Island Coastal Storm Risk Study 525,000
12	Narragansett Bay SAMP 250,000
13	Other Funds Total 775,000
14	Grand Total – Coastal Resources Mgmt. Council 5,232,623
15	Transportation
16	Central Management
17	Federal Funds 6,756,379
18	Other Funds
19	Gasoline Tax 4,799,653
20	Other Funds Total 4,799,653
21	Total – Central Management 11,556,032
22	Management and Budget
23	Other Funds
24	Gasoline Tax 2,942,455
25	Other Funds Total 2,942,455
26	Total – Management and Budget 2,942,455
27	Infrastructure Engineering
28	Federal Funds
29	Federal Funds 264,247,090
30	Federal Funds – Stimulus 4,386,593
31	Federal Funds Total 268,633,683
32	Restricted Receipts 3,168,128
33	Other Funds
34	Gasoline Tax 76,170,795
	LC000840 - Page 32 of 319
1	Land Sale Revenue 2,673,125
2	Rhode Island Capital Plan Funds
3	RIPTA Land and Buildings 90,000
4	RIPTA Pawtucket Bus Hub 313,018
5	RIPTA Providence Transit Connector 470,588
6	Highway Improvement Program 32,451,346
7	Other Funds Total 112,168,872
8	Total - Infrastructure Engineering 383,970,683
9	Infrastructure Maintenance
10	Other Funds
11	Gasoline Tax 20,612,520
12	Non-Land Surplus Property 50,000
13	Outdoor Advertising 100,000
14	Rhode Island Highway Maintenance Account 86,433,382
15	Rhode Island Capital Plan Funds
16	Maintenance Facilities Improvements 400,000
17	Salt Storage Facilities 1,000,000
18	Portsmouth Facility 575,256
19	Maintenance - Equipment Replacement 2,500,000
20	Train Station Maintenance and Repairs 350,000
21	Other Funds Total 112,021,158
22	Total – Infrastructure Maintenance 112,021,158
23	Grand Total – Transportation 510,490,328
24	Statewide Totals
25	General Revenues 3,792,708,988
26	Federal Funds 2,418,039,978
27	Restricted Receipts 273,794,280
28	Other Funds 2,099,724,938
29	Statewide Grand Total 9,248,062,696
30	SECTION 2. Each line appearing in Section 1 of this Article shall constitute an
31	appropriation.
32	SECTION 3. Upon the transfer of any function of a department or agency to another
33	department or agency, the Governor is hereby authorized by means of executive order to transfer
34	or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected
	LC000840 - Page 33 of 319
1	thereby.
2	SECTION 4. From the appropriation for contingency shall be paid such sums as may be
3	required at the discretion of the Governor to fund expenditures for which appropriations may not
4	exist. Such contingency funds may also be used for expenditures in the several departments and
5	agencies where appropriations are insufficient, or where such requirements are due to unforeseen
6	conditions or are non-recurring items of an unusual nature. Said appropriations may also be used
7	for the payment of bills incurred due to emergencies or to any offense against public peace and
8	property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as
9	amended. All expenditures and transfers from this account shall be approved by the Governor.
10	SECTION 5. The general assembly authorizes the state controller to establish the
11	internal service accounts shown below, and no other, to finance and account for the operations of
12	state agencies that provide services to other agencies, institutions and other governmental units on
13	a cost reimbursed basis. The purpose of these accounts is to ensure that certain activities are
14	managed in a businesslike manner, promote efficient use of services by making agencies pay the
15	full costs associated with providing the services, and allocate the costs of central administrative
16	services across all fund types, so that federal and other non-general fund programs share in the
17	costs of general government support. The controller is authorized to reimburse these accounts
18	for the cost of work or services performed for any other department or agency subject to the
19	following expenditure limitations:
20	Account Expenditure Limit
21	State Assessed Fringe Benefit Internal Service Fund 41,229,448
22	Administration Central Utilities Internal Service Fund 24,910,320
23	State Central Mail Internal Service Fund 6,838,505
24	State Telecommunications Internal Service Fund 3,244,413
25	State Automotive Fleet Internal Service Fund 12,510,602
26	Surplus Property Internal Service Fund 3,000
27	Health Insurance Internal Service Fund 251,804,700
28	Other Post-Employment Benefits Fund 63,852,483
29	Capitol Police Internal Service Fund 1,306,128
30	Corrections Central Distribution Center Internal Service Fund 6,784,478
31	Correctional Industries Internal Service Fund 7,581,704
32	Secretary of State Record Center Internal Service Fund 807,345
33	SECTION 6. Appropriation of Temporary Disability Insurance Funds -- There is hereby
34	appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all
	LC000840 - Page 34 of 319
1	funds required to be disbursed for the benefit payments from the Temporary Disability Insurance
2	Fund and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2018.
3	SECTION 7. Appropriation of Employment Security Funds -- There is hereby
4	appropriated pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to
5	be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending
6	June 30, 2018.
7	SECTION 8. Appropriation of Lottery Division Funds -- There is hereby appropriated to
8	the Lottery Division any funds required to be disbursed by the Lottery Division for the purposes
9	of paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2018.
10	SECTION 9. Departments and agencies listed below may not exceed the number of full-
11	time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions
12	do not include seasonal or intermittent positions whose scheduled period of employment does not
13	exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and
14	twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include
15	individuals engaged in training, the completion of which is a prerequisite of employment.
16	Provided, however, that the Governor or designee, Speaker of the House of Representatives or
17	designee, and the President of the Senate or designee may authorize an adjustment to any
18	limitation. Prior to the authorization, the State Budget Officer shall make a detailed written
19	recommendation to the Governor, the Speaker of the House, and the President of the Senate. A
20	copy of the recommendation and authorization to adjust shall be transmitted to the chairman of
21	the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the
22	Senate Fiscal Advisor.
23	State employees whose funding is from non-state general revenue funds that are time
24	limited shall receive limited term appointment with the term limited to the availability of non-
25	state general revenue funding source.
26	FY 2018 FTE POSITION AUTHORIZATION
27	Departments and Agencies Full-Time Equivalent
28	Administration 713.7
29	Business Regulation 106.0
30	Executive Office of Commerce 17.0
31	Labor and Training 433.7
32	Revenue 539.5
33	Legislature 298.5
34	Office of the Lieutenant Governor 8.0
	LC000840 - Page 35 of 319
1	Office of the Secretary of State 59.0
2	Office of the General Treasurer 87.0
3	Board of Elections 12.0
4	Rhode Island Ethics Commission 12.0
5	Office of the Governor 45.0
6	Commission for Human Rights 14.5
7	Public Utilities Commission 57.0
8	Office of Health and Human Services 269.0
9	Children, Youth, and Families 616.5
10	Health 499.6
11	Human Services 838.1
12	Behavioral Healthcare, Developmental Disabilities, and Hospitals 1,319.4
13	Office of the Child Advocate 7.0
14	Commission on the Deaf and Hard of Hearing 4.0
15	Governor’s Commission on Disabilities 4.0
16	Office of the Mental Health Advocate 4.0
17	Elementary and Secondary Education 139.1
18	School for the Deaf 60.0
19	Davies Career and Technical School 126.0
20	Office of Postsecondary Commissioner 37.0
21	Provided that 1.0 of the total authorization would be available only for positions that are
22	supported by third-party funds.
23	University of Rhode Island 2,489.5
24	Provided that 573.8 of the total authorization would be available only for positions that
25	are supported by third-party funds.
26	Rhode Island College 926.2
27	Provided that 82.0 of the total authorization would be available only for positions that are
28	supported by third-party funds.
29	Community College of Rhode Island 854.1
30	Provided that 89.0 of the total authorization would be available only for positions that are
31	supported by third-party funds.
32	Rhode Island State Council on the Arts 8.6
33	RI Atomic Energy Commission 8.6
34	Historical Preservation and Heritage Commission 15.6
	LC000840 - Page 36 of 319
1	Office of the Attorney General 235.1
2	Corrections 1,426.0
3	Judicial 723.5
4	Military Staff 92.0
5	Public Safety 660.6
6	Office of the Public Defender 94.0
7	Environmental Management 403.0
8	Coastal Resources Management Council 29.0
9	Transportation 775.0
10	Total 15,067.4
11	SECTION 10. The amounts reflected in this Article include the appropriation of Rhode
12	Island Capital Plan funds for fiscal year 2018 and supersede appropriations provided for FY 2018
13	within Section 11 of Article 1 of Chapter 142 of the P.L. of 2016.
14	The following amounts are hereby appropriated out of any money in the State’s Rhode
15	Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending
16	June 30, 2019, June 30, 2020, and June 30, 2021. These amounts supersede appropriations
17	provided within Section 11 of Article 1 of Chapter 142 of the P.L. of 2016. For the purposes and
18	functions hereinafter mentioned, the State Controller is hereby authorized and directed to draw
19	his or her orders upon the General Treasurer for the payment of such sums and such portions
20	thereof as may be required by him or her upon receipt of properly authenticated vouchers.
21	Fiscal Year Fiscal Year Fiscal Year
22	Ending Ending Ending
23	Project June 30, 2019 June 30, 2020 June 30, 2021
24	DOA – Capitol Hill Campus Projects 2,950,000 4,350,000 10,430,000
25	DOA – Environmental Projects 500,000 500,000 500,000
26	DOA – State Facility Projects 3,380,000 3,400,000 2,750,000
27	DOA – Pastore Center Campus Projects 6,105,000 8,030,000 4,000,000
28	DOA – State House Asset Protection Projects 4,250,000 1,000,000 500,000
29	DOA – Zambarano Campus Projects 2,240,000 1,100,000 1,500,000
30	DOA – Energy Efficiency 1,000,000 1,000,000 1,000,000
31	DOA – Accessibility 1,000,000 1,000,000 1,000,000
32	DOA – State House Energy Management
33	Improvement Project 3,000,000 0 0
34	EOC – Quonset Point/Davisville Pier 2,000,000 5,000,000 5,000,000
	LC000840 - Page 37 of 319
1	BHDDH – Hospital Reorganization 920,000 0 0
2	Higher Ed – Academic Bldg Phase I- Craig
3	Lee, Gaige, Adams Library 6,000,000 0 0
4	Higher Ed – Infrastructure Modernization 4,500,000 3,600,000 3,500,000
5	Higher Ed – Knight Campus Biology and
6	Chemistry Lab Renovation 375,000 0 0
7	Higher Ed – Knight Campus Renewal 4,000,000 3,000,000 0
8	DOC – ISC Exterior Envelope and HVAC
9	Renovation 1,700,000 2,200,000 1,150,000
10	DOC – Medium Infrastructure 6,000,000 7,000,000 0
11	Mil Staff – Joint Force Headquarters Building 4,181,152 0 0
12	DEM – Dam Repair 1,500,000 1,250,000 1,000,000
13	DEM – Galilee Piers/Bulkhead 1,250,000 400,000 400,000
14	DEM – Recreational Facility Improvements 1,600,000 1,850,000 2,100,000
15	DOT – Highway Improvement Program 32,451,346 32,451,346 32,451,346
16	DOT – Maintenance- Capital Equipment
17	Replacement 2,500,000 2,500,000 2,500,000
18	RIPTA – Pawtucket Bus Hub and Transit
19	Corridor 946,168 0 0
20	RIPTA – Providence Transit Connector 1,561,279 0 0
21	SECTION 11. Reappropriation of Funding for Rhode Island Capital Plan Fund
22	Projects. – Any unexpended and unencumbered funds from Rhode Island Capital Plan Fund
23	project appropriations may be reappropriated at the recommendation of the Governor in the
24	ensuing fiscal year and made available for the same purpose. However, any such reappropriations
25	are subject to final approval by the General Assembly as part of the supplemental appropriations
26	act. Any unexpended funds of less than five hundred dollars ($500) shall be reappropriated at the
27	discretion of the State Budget Officer.
28	SECTION 12. For the Fiscal Year ending June 30, 2018, the Rhode Island Housing and
29	Mortgage Finance Corporation shall provide from its resources such sums as appropriate in
30	support of the Neighborhood Opportunities Program. The Corporation shall provide a report
31	detailing the amount of funding provided to this program, as well as information on the number
32	of units of housing provided as a result to the Director of Administration, the Chair of the
33	Housing Resources Commission, the Chair of the House Finance Committee, the Chair of the
34	Senate Finance Committee and the State Budget Officer.
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1	SECTION 13. Notwithstanding any provisions of Chapter 19 in Title 23 of the Rhode
2	Island General Laws, the Resource Recovery Corporation shall transfer to the State Controller the
3	sum of six million dollars ($6,000,000) by June 30, 2018.
4	SECTION 14. Notwithstanding any provisions of Chapter 12.2 in Title 46 of the Rhode
5	Island General Laws, the Rhode Island Infrastructure Bank shall transfer to the State Controller
6	the sum of one million dollars ($1,000,000) by June 30, 2018.
7	SECTION 15. Notwithstanding any provisions of Chapter 25 in Title 46 of the Rhode
8	Island General Laws, the Narragansett Bay Commission shall transfer to the State Controller the
9	sum of two million five hundred thousand dollars ($2,500,000) by June 30, 2018.
10	SECTION 16. Notwithstanding any provisions of Chapter 38 in Title 45 of the Rhode
11	Island General Laws, the Rhode Island Health and Educational Building Corporation shall
12	transfer to the State Controller the sum of one million two hundred thousand dollars ($1,200,000)
13	by June 30, 2018.
14	SECTION 17. Notwithstanding any provisions of Chapter 12 in Title 24 of the Rhode
15	Island General Laws, the Rhode Island Turnpike and Bridge Authority shall transfer to the State
16	Controller the sum of two million six hundred thousand dollars ($2,600,000) by June 30, 2018.
17	SECTION 18. Effective for the fiscal year ending June 30, 2018 and each fiscal year
18	thereafter, the Public Utilities Commission shall transfer to the State Controller for deposit as a
19	general revenue receipt the sum of three hundred thirty-three thousand four hundred twenty
20	dollars ($333,420) for rent on the building located at 89 Jefferson Boulevard in Warwick, Rhode
21	Island.
22	SECTION 19. This article shall take effect as of July 1, 2017.
23	ARTICLE 2
24	RELATING TO ECONOMIC DEVELOPMENT AND TAX CREDITS
25	SECTION 2. Sections 42-64.28-2, 42-64.28-3, 42-64.28-4, and 42-64.28-5 of the General
26	Laws in Chapter 42-64.28 entitled "Innovation Initiative" are hereby amended to read as follows:
27	42-64.28-2 Definitions.
28	As used in this chapter:
29	(1) "Commerce corporation" means the Rhode Island commerce corporation established
30	pursuant to 42-64-1 et seq.
31	(2) "Small business" means a business that is resident in Rhode Island, has its business
32	facility located within the state, and employs five hundred (500) or fewer persons.
33	(3) “Manufacturer” shall have the same meanings as provided in 44-3-3(20)(iii) and (iv)
34	and shall include any business described in major groups 20 through 39 in the standard industrial
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1	classification manual prepared by the technical committee on industrial classification, office of
2	statistical standards, executive office of the president, United States Bureau of Budget, as revised
3	from time to time; provided, however, that notwithstanding the foregoing the term shall include
4	any business engaged in the processing, refining, metalworking, packaging, warehousing,
5	shipping, and distribution of goods.
6	(4) “Small business manufacturer” shall mean a business that meets the definitions of
7	terms small business and manufacturer as defined herein.
8	(3) (5) "Match" shall mean a funding match, or in kind services provided by a third party.
9	(4) (6) "Targeted industry" means any advanced, promising or otherwise prioritized
10	industry identified in the economic development vision and policy promulgated pursuant to 42-
11	64.17-1 or, until such time as any such economic development vision and policy is promulgated,
12	as identified by the commerce corporation.
13	42-64.28-3 Programs Established.
14	(a) The Rhode Island commerce corporation shall establish a voucher program and an
15	innovation network program as provided under this chapter. The programs are subject to available
16	appropriations and such other funding as may be dedicated to the programs.
17	(b) There is established an account in the name of the "innovation initiative fund" (the
18	"fund") under the control of the commerce corporation to fund the programs.
19	(1) The fund shall consist of:
20	(i) Money appropriated in the state budget to the fund;
21	(ii) Money made available to the fund through federal grants, programs or private
22	contributions;
23	(iii) Application or other fees paid to the fund to process applications for awards under
24	this chapter; and
25	(iv) Any other money made available to the fund.
26	(c) Voucher program. The commerce corporation is authorized, to develop and
27	implement an innovation voucher program to provide financing to small businesses to purchase
28	research and development support or other forms of technical assistance and services from Rhode
29	Island institutions of higher education and other providers and to fund research and development
30	by and for small business manufacturers.
31	(d) Innovation network program. The commerce corporation is authorized to provide
32	innovation grants to organizations, including non-profit organizations, for-profit organizations,
33	universities, and co-working space operators that offer technical assistance, space on flexible
34	terms, and access to capital to businesses in advanced or targeted industries. The commerce
	LC000840 - Page 40 of 319
1	corporation shall only issue grants under this subsection when those grants are matched by private
2	sector or non-profit partners. The commerce corporation shall establish guidelines for appropriate
3	matching criteria under this section, including necessary matching ratios.
4	42-64.28-4 Eligible uses.
5	(a) Vouchers available under this chapter shall be used for the benefit of small businesses
6	to access technical assistance and other services including, but not limited to, research,
7	technological development, product development, commercialization, market development,
8	technology exploration, and improved business practices that implement strategies to grow
9	business and create operational efficiencies.
10	(b) Vouchers available under this chapter shall be used to provide funding to finance
11	internal research and development by and for small business manufacturers, including, but not
12	limited to, research, technological development, product development, commercialization, market
13	development, technology exploration, and improved business practices that implement strategies
14	to grow business and create operational efficiencies. Subject to appropriation, the commerce
15	corporation shall reserve up to one million dollars ($1,000,000.00) to be made available in fiscal
16	year 2018 for vouchers awarded to small business manufacturers under this subsection.
17	(b) (c) Matching fund awards shall be used for the benefit of small businesses in
18	industries designated from time-to-time by the corporation, including without limitation, life
19	science and healthcare; food and agriculture; clean technology and energy efficiency; and cyber
20	security to pay for and access technological assistance, to procure space on flexible terms, and to
21	access capital from organizations, including non-profit organizations, for-profit organizations,
22	universities, and co-working space businesses.
23	42-64.28-5 Qualification.
24	(a)To qualify for a voucher or for a matching fund award under this chapter, a business
25	must make application to the commerce corporation, and upon selection, shall enter into an
26	agreement with the commerce corporation. The commerce corporation shall have no obligation to
27	issue any voucher, make any award or grant any benefits under this chapter.
28	(b) In a given tax year, a business shall not receive a voucher or matching fund award
29	provided for under this chapter in conjunction with the tax credit provided for in section 44-32-3
30	of the general laws.
31	SECTION 2. Title 42 of the General Laws, entitled “State Affairs and Government,” is
32	hereby amended by adding thereto the following chapter:
33	CHAPTER 64.33
34	REFUNDABLE INVESTMENT TAX CREDIT
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1	42-64.33-1. Short title.
2	This chapter shall be known and may be cited as the “Refundable Investment Tax Credit
3	Act.”
4	42-64.33-2. Legislative findings.
5	Although chapter 31 of title 44 of the Rhode Island general laws (the “Investment Tax
6	Credit statute”) establishes tax credits for eligible taxpayers for certain investments for the
7	construction of facilities, the acquisition of tangible personal property, and the training of
8	employees, the Investment Tax Credit statute does not allow for the taking of such tax credits by
9	certain business entities and further does not provide for refunds to the extent that the tax credits
10	exceed the eligible taxpayers’ tax liability. Through the establishment of a refundable investment
11	tax credit program for manufacturers, Rhode Island can foster further investment by
12	manufacturing businesses and thereby encourage businesses to contribute in a meaningful way to
13	the economic development of this state. In so doing, this program will further advance the
14	competitiveness of Rhode Island and its companies in the national and global economies and
15	result in the creation and/or retention of jobs and tax revenues for the state.
16	42-64.33-3. Definitions.
17	As used in this chapter:
18	(1) “Business” means a manufacturer that is a C corporation, S corporation, partnership,
19	limited partnership, limited liability partnership, limited liability company, or sole proprietorship;
20	(2) “Commerce corporation” means the Rhode Island commerce corporation established
21	pursuant to general laws 42-64-1 et. seq.;
22	(3) “Eligible taxpayer” means a taxpayer eligible for an investment tax credit pursuant to
23	general law 44-31-1;
24	(4) “Manufacturing” and “Manufacturer” shall have the same meanings as provided in
25	44-31-1(b)(1) and (2) and shall further include any entity described in major groups 20 through
26	39 in the Standard Industrial Classification Manual prepared by the technical committee on
27	industrial classification, office of statistical standards, executive office of the president, United
28	States Bureau of Budget, as revised from time to time.
29	(5) “Refund or redemption” for purposes of this chapter means the taking of a tax credit
30	against a tax liability or obtaining a refund for a tax credit or a portion thereof.
31	(6) “Targeted industries” shall have the same meaning as provide din general law 42-
32	64.20-3 (Rebuild Rhode Island Tax Credit Program) and the regulations promulgated thereunder.
33	(7) “Tax liability” for purposes of this chapter means (i) the amount of tax owed to the
34	state of Rhode Island calculated as the Rhode Island adjusted taxable income minus any Rhode
	LC000840 - Page 42 of 319
1	Island tax credit on Schedule B-CR other than credits allowed under this chapter; or (ii) the
2	minimum tax for filers of Form RI 11120S; or (iii) the Rhode Island annual fee for file.
3	42-64.33-4. Establishment of program.
4	A refundable investment tax credit program is hereby established as a program under the
5	jurisdiction of and administered by the commerce corporation.
6	42-64.33-5. Refundable Tax credits.
7	(a) To be eligible to to take and or redeem tax credits under this chapter, a business must
8	submit a completed application to the commerce corporation for approval prior to making the
9	investment that will give rise to the requested tax credit. Such application shall be developed by
10	the commerce corporation.
11	(b) The commerce corporation may take into account the following factors in determining
12	whether to approve an application for a refundable investment tax credit pursuant to this chapter:
13	the nature and amount of the business’s investment; the necessity of the investment and/or credit;
14	whether the business is engaged in a targeted industry; the number of jobs created by the
15	business’s investment; whether the investment took place in a Hope community as defined in
16	general law 42-64.20-3 and the regulations promulgated thereunder; and such other factors as the
17	commerce corporation deems relevant.
18	(c) The refundable tax credit shall be available only to the extent that the business’s
19	investment credit exceeds that business’s tax liability for the tax year in which the credit is
20	available.
21	(d) The amount of the refundable tax credit available to any business in any given tax
22	year shall not exceed the sum of two-hundred thousand dollars ($200,000).
23	(e) Prior to approving an application for refundable credits, the commerce corporation
24	shall require the business to enter into an incentive agreement setting forth the business’s
25	eligibility to use or redeem the tax credits and the terms and conditions governing the approval
26	and receipt of the refundable tax credits.
27	(f) To take or redeem refundable tax credit authorized by the corporation, an eligible
28	business shall apply annually to the commerce corporation for a certification that the business has
29	met all the requirements of this chapter and the incentive agreement. The commerce corporation
30	shall either issue a certification to the business or provide a written response detailing any
31	deficiencies precluding certification. The commerce corporation may deny an applicant for
32	certification, or declare the incentive agreement null and void if the business does not meet all
33	requirements of this chapter and/or any additional terms and conditions of the incentive
34	agreement.
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1	(g) Upon issuance of a certification by the commerce corporation under subsection (f)
2	above, and at the request of the business, the division of taxation shall, on behalf of the State of
3	Rhode Island issue redemption tax certificate(s) as specified in the certification issued by the
4	commerce corporation pursuant to section (f) above.
5	(h) A taxpayer shall be entitled to take investment tax credits, up to the limit authorized
6	in this chapter, against taxes imposed pursuant to chapters 11 and 30 of title 44.
7	(i) Subject to annual appropriation in the state budget and upon written request of a
8	taxpayer, the state shall refund the amount of tax credit provided under this chapter in whole or in
9	part up to one hundred percent (100%) of the value of the redemption certificates issued under
10	subsection (g) reduced by the amount of the tax credit taken, if any; provided however, that
11	taxpayer may only claim a refund of a credit amount, in whole or part, for the year for which the
12	tax credit was issued. Credits carried over pursuant to subsection (j) shall not be refundable.
13	(j) If the tax credit allowed under this chapter exceeds the taxpayer's total tax liability for
14	the year in which the credit is allowed, the amount that exceeds the taxpayer's tax liability after
15	taking account any credit taken under this chapter may either be refunded pursuant to subsection
16	(i) or carried forward for credit against the tax liability for the succeeding years, or until the tax
17	credit is used in full, whichever occurs first.
18	(k) In the case of a corporation that files a consolidated return, this credit shall only be
19	allowed against the tax of a corporation included in a consolidated return that qualifies for the
20	credit and not against the tax of other corporations that may join in the filing of a consolidated tax
21	return.
22	(l) Credits allowed to a partnership, a limited liability company taxed as a partnership, or
23	multiple owners of property shall be passed through to the persons designated as partners,
24	members or owners respectively pro rata or pursuant to an executed agreement among such
25	persons designated as partners, members or owners documenting an alternate distribution method
26	without regard to their sharing of other tax or economic attributes of such entity.
27	(m) Any expenses used for calculating the tax credit under this chapter cannot be used in
28	calculating a tax credit under any other tax credit program in Rhode Island law.
29	(n) In the event any taxpayer seeking a refund under this chapter has outstanding Rhode
30	Island tax obligations, the division of taxation shall be permitted to apply said refund to the
31	outstanding tax obligations.
32	42-64.33-6. Refundable investment tax credit fund.
33	There is hereby established at the commerce corporation a restricted account known as
34	the refundable investment tax credit fund (the “fund”) into which all amounts appropriated in the
	LC000840 - Page 44 of 319
1	state budget for the redemption of tax credits under this chapter shall be deposited. The fund
2	shall be used to pay for the redemption of investment tax credits pursuant to the provisions of this
3	chapter and for which a taxpayer is eligible under general laws 44-31-1. The fund shall be
4	exempt from attachment, levy or any other process at law or in equity. The director of the
5	department of revenue shall make a requisition to the commerce corporation for funding during
6	any fiscal year as may be necessary to pay for the redemption pursuant to this chapter. The
7	commerce corporation shall pay from the fund such amounts as requested by the director of the
8	department of revenue necessary to redeem tax credits pursuant to this chapter.
9	42-64.33-7. Program integrity.
10	(a) Program integrity being of paramount importance, the commerce corporation shall
11	establish procedures to ensure ongoing compliance with the terms and conditions of the program
12	established herein, including procedures to safeguard approval of redemption of the credits and to
13	ensure that authorized redemptions further the objectives of the program.
14	(b) The commerce corporation and division of taxation may promulgate such rules and
15	regulations pursuant to chapter 35 of title 42 of the general laws as deemed necessary to carry out
16	the intent, purpose and implementation of the program established under this chapter.
17	42-64.33-8. Reporting requirements.
18	(a) By September 1, 2018 and each year thereafter, the commerce corporation shall report
19	the name and address of each business entering into an incentive agreement during the previous
20	state fiscal year to the division of taxation. The commerce corporation shall also make this
21	information publicly available on its website. In addition, the commerce corporation shall
22	provide the division of taxation a copy of each incentive agreement as they are executed.
23	(b) By December 1, 2018 and each year thereafter, the office of management and budget
24	shall provide the governor with the sum, if any, to be appropriated to fund the refundable
25	investment tax credit program.
26	SECTION 3. Title 42 of the General Laws, entitled “State Affairs and Government,” is
27	hereby amended by adding thereto the following chapter:
28	CHAPTER 64.34
29	REFUNDABLE JOBS TRAINING TAX CREDITS
30	42-64.34-1. Short title.
31	This chapter shall be known and may be cited as the “Refundable Jobs Training Tax
32	Credit Act.”
33	42-64.34-2. Legislative findings.
34	Although Chapter 64.6 of Title 42 of the Rhode Island General Laws (the “Jobs Training
	LC000840 - Page 45 of 319
1	Tax Credit statute”) establishes tax credits for qualifying employers for qualifying expenses
2	incurred in the training and/or retraining of qualifying employees, the Jobs Training Tax Credit
3	statute does not allow for the taking of such credits by certain business entities and further does
4	not provide for refunds to the extent that the qualifying employer’s job training tax credits exceed
5	the qualifying employer’s tax liability. Through the establishment of a refundable jobs training
6	tax credit program for manufacturers and businesses in targeted industries, Rhode Island can
7	foster further training and/or retraining of qualifying employees to meet the evolving needs of the
8	workforce and thereby encourage employers within those industries to contribute in a meaningful
9	way to the economic development of this state. In so doing, this program will further advance the
10	competitiveness of Rhode Island and its companies in the national and global economies and
11	result in the creation and/or retention of jobs in the state.
12	42-64.34-3. Definitions.
13	(1) As used in this chapter, “qualifying employee,” “qualifying employer,” and
14	“qualifying expenses” shall have the meanings set forth in 42-64.6-3.
15	(2) “Manufacturing” and “Manufacturer” shall have the same meanings as provided in
16	44-31-1(b)(1) and (2) and shall further include any business described in major groups 20 through
17	39 in the Standard Industrial Classification Manual prepared by the technical committee on
18	industrial classification, office of statistical standards, executive office of the president, United
19	States Bureau of Budget, as revised from time to time; provided, however, that notwithstanding
20	the foregoing, the terms shall include any business engaged in the processing, refining,
21	metalworking, packaging, warehousing, shipping, and distribution of goods.
22	(3) “Refund or redemption” for purposes of this chapter means the taking of a tax credit
23	against a tax liability or obtaining a refund for a tax credit or a portion thereof.
24	(4) “Targeted industries” shall have the same meaning as provide din general law 42-
25	64.20-3 (Rebuild Rhode Island Tax Credit Program) and the regulations promulgated thereunder.
26	(5) “Tax liability” for purposes of this chapter means (i) the amount of tax owed to the
27	state of Rhode Island calculated as the Rhode Island adjusted taxable income minus any Rhode
28	Island tax credit on Schedule B-CR other than credits allowed under this chapter; or (ii) the
29	minimum tax for filers of Form RI 11120S; or (iii) the Rhode Island annual fee for file.
30	42-64.34-4. Establishment of program.
31	A refundable jobs training tax credit program is hereby established as a program under
32	the jurisdiction of and administered by the commerce corporation. Qualifying employers that
33	are not manufacturers or are not within a targeted industry shall not be eligible for the refundable
34	tax credit created by this section.
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1	42-64.34-5. Refundable Tax credits.
2	(a) To be eligible to take and/or redeem tax credits under this chapter, a qualifying
3	employer must submit a completed application to the commerce corporation for approval prior to
4	incurring the expenses for the training that will give rise to the requested tax credit. Such
5	application shall be developed by the commerce corporation.
6	(b) The commerce corporation may take into account the following factors in determining
7	whether to approve a qualifying employer for a refundable jobs training tax credit pursuant to this
8	section: the number of the qualifying employer’s qualifying employees and the amount of the
9	qualifying employer’s qualifying expenses; the necessity of the training expenses and/or credit;
10	the number of jobs created and/or retained as a result of the qualified expenses incurred by the
11	qualifying employer; whether the jobs training and/or retraining was applicable to a qualifying
12	employer located in a Hope Community, as defined in general law 42-64.20-3 and the regulations
13	promulgated thereunder; and such other factors as the commerce corporation deems relevant.
14	(c) The refundable jobs training tax credit shall be available only to the extent that the
15	qualifying employer’s jobs training tax credit exceeds that qualifying employer’s tax liability for
16	the tax year in which the credit is available.
17	(d) The amount of the refundable tax credit available to any qualifying employer in any
18	given tax year shall not exceed the sum of two-hundred thousand dollars ($200,000).
19	(e) Prior to approving an application for refundable tax credits, the commerce corporation
20	shall require the qualifying employer to enter into an incentive agreement setting forth the
21	qualifying employer’s eligibility to use or redeem tax credits and the terms and conditions
22	governing the approval and receipt of the tax credits.
23	(f) To take or redeem a refundable tax credit authorized by the corporation, a qualifying
24	employer shall apply annually to the commerce corporation for a certification that the qualifying
25	employer has met all the requirements of this chapter and the incentive agreement. The
26	commerce corporation shall either issue ta certification o the qualifying employer or provide a
27	written response detailing any deficiencies precluding certification. The commerce corporation
28	may deny an application for certification, or declare the incentive agreement null and void if the
29	qualifying employer does not meet all requirements of this chapter and/or any additional terms
30	and conditions of the incentive agreement.
31	(g) Upon issuance of a certification by the commerce corporation under subsection (f)
32	above and at the written request of the qualifying employer, the division of taxation shall, on
33	behalf of the State of Rhode Island, issue redemption tax certificate(s) as specified in the
34	certification issued by the commerce corporation pursuant to section (f).
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1	(h) A taxpayer shall be entitled to take jobs training tax credits, up to the limit authorized
2	in this chapter, against taxes imposed pursuant to chapters 11, 13 (except for 44-13-13), 14, 17,
3	and 30 of title 44.
4	(i) Subject to annual appropriation in the state budget and upon written request of a
5	taxpayer, the state shall refund the amount of tax credit provided under this chapter in whole or in
6	part up to one hundred percent (100%) of the value of the redemption certificates issued under
7	subsection (g) reduced by the amount of the tax credit taken, if any; provide, however, that a
8	taxpayer may only claim a refund of a tax credit amount, in whole or in part, for the year for
9	which the tax credit was issued. Credits carried over pursuant to subsection (j) shall not be
10	refundable.
11	(j) If the tax credit allowed under this chapter exceeds the taxpayer's total tax liability for
12	the year in which the credit is allowed, the amount that exceeds the taxpayer's tax liability after
13	taking into account any credit taken under this chapter may either be refunded pursuant to
14	subsection (i) or carried forward for credit against the tax liability for the succeeding years, or
15	until the tax credit is used in full, whichever occurs first.
16	(k) In the case of a qualifying employer that is a corporation that file a consolidated
17	return, this credit shall only be allowed against the tax of a corporation included in a consolidated
18	return that qualifies for the credit and not against the tax of other corporations that may join in the
19	filing of a consolidated tax return.
20	(l) Credits allowed to a qualifying employer that is a partnership, a limited liability
21	company taxed as a partnership, or that is owned by multiple persons shall be passed through to
22	the persons designated as partners, members or owners respectively pro rata or pursuant to an
23	executed agreement among such persons designated as partners, members or owners documenting
24	an alternate distribution method without regard to their sharing of other tax or economic attributes
25	of such entity.
26	(m) Any expenses used for calculating the tax credit under this chapter cannot be used in
27	calculating a tax credit under any other tax credit program in Rhode Island law.
28	(n) In the event any taxpayer seeking a refund under this chapter has outstanding Rhode
29	Island tax obligations, the division of taxation shall be permitted to apply said refund to the
30	outstanding tax obligations.
31	42-64.34-6. Refundable jobs training tax credit fund.
32	There is hereby established at the commerce corporation a restricted account known as
33	the refundable jobs training tax credit fund (the “fund”) in to which all amounts appropriated in
34	the state budget for the redemption of tax credits under this chapter shall be deposited. The fund
	LC000840 - Page 48 of 319
1	shall be used to pay for the redemption of jobs training tax credits pursuant to the provisions of
2	this chapter and for which a taxpayer is eligible under general laws 42-64.6-1, et seq. The fund
3	shall be exempt from attachment, levy or any other process at law or in equity. The director of
4	the department of revenue shall make a requisition to the commerce corporation for funding
5	during any fiscal year as may be necessary to pay for the redemption of tax credits pursuant to
6	this chapter. The commerce corporation shall pay from the fund such amounts requested by the
7	director of the department of revenue necessary to redeem tax credits pursuant to this chapter.
8	42-64.34-7. Program integrity.
9	(a) Program integrity being of paramount importance, the commerce corporation shall
10	establish procedures to ensure ongoing compliance with the terms and conditions of the program
11	established herein, including procedures to safeguard approval of redemption of the credits and to
12	ensure that authorized redemptions further the objectives of the program.
13	(b) The commerce corporation and division of taxation may promulgate such rules and
14	regulations pursuant to chapter 35 of title 42 of the general laws as deemed necessary to carry out
15	the intent, purpose and implementation of the program established under this chapter.
16	42-64.34-8. Reporting requirements.
17	(a) By September 1, 2018 and each year thereafter, the commerce corporation shall report
18	the name and address of each qualifying employer entering into an incentive agreement during
19	the previous state fiscal year to the division of taxation. The commerce corporation shall also
20	make this information publicly available on its website. In addition, the commerce corporation
21	shall provide the division of taxation a copy of each incentive agreement as they are executed.
22	(b) By December 1, 2018 and each year thereafter, the office of management and budget
23	shall provide the governor with the sum, if any, to be appropriated to fund the refundable jobs
24	training tax credit program.
25	SECTION 4. Title 42 of the General Laws, entitled “State Affairs and Government,” is
26	hereby amended by adding thereto the following chapter:
27	CHAPTER 64.35
28	TECHNICAL ASSISTANCE FOR MUNICIPAL ZONING AND PERMITTING FUND
29	42-64.35-1 Statement of intent.
30	Outdated and overly burdensome zoning, planning, and permitting codes and processes
31	can inhibit the establishment of sustained economic development at the local level. It is the
32	intention of the general assembly to assist municipalities in addressing and streamlining their
33	respective zoning, planning, and permitting codes and processes by creating a funding program to
34	provide access to technical assistance for the evaluation and betterment of such codes and
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1	processes.
2	42-64.35-2 Fund established.
3	The technical assistance for municipal zoning and permitting fund is hereby created
4	within the Rhode Island commerce corporation (the “fund”). The commerce corporation is
5	authorized, within available appropriations, to award loans, grants, and other forms of financing
6	to provide access by municipalities to technical assistance to evaluate and streamline their
7	respective zoning, planning, and permitting codes and processes to foster economic development
8	and business attraction within their respective municipalities. Applications and awards of grants,
9	loans, and other forms of financing shall be on a rolling basis. There is established an account in
10	the name of the "technical assistance for municipal zoning and permitting fund" under the control
11	of the commerce corporation, and the commerce corporation shall pay into such account any
12	eligible funds available to the commerce corporation from any source, including funds
13	appropriated by the state and any grants made available by the United States or any agency of the
14	United States.
15	42-64.35-3 Rules and regulations.
16	The commerce corporation is hereby authorized to promulgate such rules and regulations
17	as are necessary to fulfill the purposes of this chapter, including the criteria by which grant, loan,
18	or other form of financing applications will be judged and awarded.
19	42-64.35-4 Reporting requirements.
20	The commerce corporation shall publish a report on the fund at the end of each fiscal
21	year, which shall contain information on the commitment, disbursement, and use of funds
22	allocated under the fund. The report shall also, to the extent practicable, track the economic
23	impact of projects that have been completed using the fund. The report is due no later than sixty
24	(60) days after the end of the fiscal year, and shall be provided to the speaker of the house of
25	representatives and the president of the senate.
26	42-64.35-5 Program integrity.
27	Program integrity being of paramount importance, the commerce corporation shall
28	establish procedures to ensure ongoing compliance with the terms and conditions of the program
29	established herein, including procedures to safeguard the expenditure of public funds and to
30	ensure that the funds further the objectives of the program.
31	42-64.35-6 Sunset.
32	No incentives shall be authorized pursuant to this chapter after December 31, 2019.
33	SECTION 5. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal
34	Income Tax" is hereby amended to read as follows:
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1	44-30-2.6. Rhode Island taxable income -- Rate of tax. [Effective January 1, 2017.]
2	(a) "Rhode Island taxable income" means federal taxable income as determined under
3	the Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic,
4	standard-deduction amount for married couples filing joint returns as provided in the Jobs and
5	Growth Tax Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief
6	Reconciliation Act of 2001 (EGTRRA), and as modified by the modifications in § 44-30-12.
7	(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning
8	on or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode
9	Island taxable income of residents and nonresidents, including estates and trusts, at the rate of
10	twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for
11	tax year 2002 and thereafter of the federal income tax rates, including capital gains rates and any
12	other special rates for other types of income, except as provided in § 44-30-2.7, which were in
13	effect immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation
14	Act of 2001 (EGTRRA); provided, rate schedules shall be adjusted for inflation by the tax
15	administrator beginning in taxable year 2002 and thereafter in the manner prescribed for
16	adjustment by the commissioner of Internal Revenue in 26 U.S.C. § 1(f). However, for tax years
17	beginning on or after January 1, 2006, a taxpayer may elect to use the alternative flat tax rate
18	provided in § 44-30-2.10 to calculate his or her personal income tax liability.
19	(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative
20	minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode
21	Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed
22	by multiplying the federal tentative minimum tax without allowing for the increased exemptions
23	under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal
24	form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%)
25	for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and
26	comparing the product to the Rhode Island tax as computed otherwise under this section. The
27	excess shall be the taxpayer's Rhode Island alternative minimum tax.
28	(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption
29	amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation
30	by the tax administrator in the manner prescribed for adjustment by the commissioner of Internal
31	Revenue in 26 U.S.C. § 1(f).
32	(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode
33	Island taxable income shall be determined by deducting from federal adjusted gross income as
34	defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island
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1	itemized-deduction amount and the Rhode Island exemption amount as determined in this
2	section.
3	(A) Tax imposed.
4	(1) There is hereby imposed on the taxable income of married individuals filing joint
5	returns and surviving spouses a tax determined in accordance with the following table:
6	If taxable income is: The tax is:
7	Not over $53,150 3.75% of taxable income
8	Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150
9	Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500
10	Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850
11	Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700
12	(2) There is hereby imposed on the taxable income of every head of household a tax
13	determined in accordance with the following table:
14	If taxable income is: The tax is:
15	Not over $42,650 3.75% of taxable income
16	Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650
17	Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100
18	Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350
19	Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700
20	(3) There is hereby imposed on the taxable income of unmarried individuals (other than
21	surviving spouses and heads of households) a tax determined in accordance with the following
22	table:
23	If taxable income is: The tax is:
24	Not over $31,850 3.75% of taxable income
25	Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850
26	Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100
27	Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850
28	Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700
29	(4) There is hereby imposed on the taxable income of married individuals filing separate
30	returns and bankruptcy estates a tax determined in accordance with the following table:
31	If taxable income is: The tax is:
32	Not over $26,575 3.75% of taxable income
33	Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575
34	Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250
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1	Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925
2	Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850
3	(5) There is hereby imposed a taxable income of an estate or trust a tax determined in
4	accordance with the following table:
5	If taxable income is: The tax is:
6	Not over $2,150 3.75% of taxable income
7	Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150
8	Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000
9	Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650
10	Over $10,450 $737.50 plus 9.90% of the excess over $10,450
11	(6) Adjustments for inflation.
12	The dollars amount contained in paragraph (A) shall be increased by an amount equal to:
13	(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by;
14	(b) The cost-of-living adjustment determined under section (J) with a base year of 1993;
15	(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making
16	adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall
17	be determined under section (J) by substituting "1994" for "1993."
18	(B) Maximum capital gains rates.
19	(1) In general.
20	If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax
21	imposed by this section for such taxable year shall not exceed the sum of:
22	(a) 2.5 % of the net capital gain as reported for federal income tax purposes under section
23	26 U.S.C. 1(h)(1)(a) and 26 U.S.C. 1(h)(1)(b).
24	(b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.
25	1(h)(1)(c).
26	(c) 6.25% of the net capital gain as reported for federal income tax purposes under 26
27	U.S.C. 1(h)(1)(d).
28	(d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.
29	1(h)(1)(e).
30	(2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital
31	gain shall be determined under subdivision 44-30-2.6(c)(2)(A).
32	(C) Itemized deductions.
33	(1) In general.
34	For the purposes of section (2), "itemized deductions" means the amount of federal
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1	itemized deductions as modified by the modifications in § 44-30-12.
2	(2) Individuals who do not itemize their deductions.
3	In the case of an individual who does not elect to itemize his deductions for the taxable
4	year, they may elect to take a standard deduction.
5	(3) Basic standard deduction.
6	The Rhode Island standard deduction shall be allowed in accordance with the following
7	table:
8	Filing status Amount
9	Single $5,350
10	Married filing jointly or qualifying widow(er) $8,900
11	Married filing separately $4,450
12	Head of Household $7,850
13	(4) Additional standard deduction for the aged and blind.
14	An additional standard deduction shall be allowed for individuals age sixty-five (65) or
15	older or blind in the amount of $1,300 for individuals who are not married and $1,050 for
16	individuals who are married.
17	(5) Limitation on basic standard deduction in the case of certain dependents.
18	In the case of an individual to whom a deduction under section (E) is allowable to another
19	taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater
20	of:
21	(a) $850;
22	(b) The sum of $300 and such individual's earned income;
23	(6) Certain individuals not eligible for standard deduction.
24	In the case of:
25	(a) A married individual filing a separate return where either spouse itemizes deductions;
26	(b) Nonresident alien individual;
27	(c) An estate or trust;
28	The standard deduction shall be zero.
29	(7) Adjustments for inflation.
30	Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an
31	amount equal to:
32	(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988,
33	multiplied by
34	(b) The cost-of-living adjustment determined under section (J) with a base year of 1988.
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1	(D) Overall limitation on itemized deductions.
2	(1) General rule.
3	In the case of an individual whose adjusted gross income as modified by § 44-30-12
4	exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the
5	taxable year shall be reduced by the lesser of:
6	(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12
7	over the applicable amount; or
8	(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable
9	for such taxable year.
10	(2) Applicable amount.
11	(a) In general.
12	For purposes of this section, the term "applicable amount" means $156,400 ($78,200 in
13	the case of a separate return by a married individual)
14	(b) Adjustments for inflation.
15	Each dollar amount contained in paragraph (a) shall be increased by an amount equal to:
16	(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by
17	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
18	(3) Phase-out of Limitation.
19	(a) In general.
20	In the case of taxable year beginning after December 31, 2005, and before January 1,
21	2010, the reduction under section (1) shall be equal to the applicable fraction of the amount which
22	would be the amount of such reduction.
23	(b) Applicable fraction.
24	For purposes of paragraph (a), the applicable fraction shall be determined in accordance
25	with the following table:
26	For taxable years beginning in calendar year The applicable fraction is
27	2006 and 2007 2/3
28	2008 and 2009 1/3
29	(E) Exemption amount.
30	(1) In general.
31	Except as otherwise provided in this subsection, the term "exemption amount" means
32	$3,400.
33	(2) Exemption amount disallowed in case of certain dependents.
34	In the case of an individual with respect to whom a deduction under this section is
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1	allowable to another taxpayer for the same taxable year, the exemption amount applicable to such
2	individual for such individual's taxable year shall be zero.
3	(3) Adjustments for inflation.
4	The dollar amount contained in paragraph (1) shall be increased by an amount equal to:
5	(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by
6	(b) The cost-of-living adjustment determined under section (J) with a base year of 1989.
7	(4) Limitation.
8	(a) In general.
9	In the case of any taxpayer whose adjusted gross income as modified for the taxable year
10	exceeds the threshold amount shall be reduced by the applicable percentage.
11	(b) Applicable percentage.
12	In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the
13	threshold amount, the exemption amount shall be reduced by two (2) percentage points for each
14	$2,500 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year
15	exceeds the threshold amount. In the case of a married individual filing a separate return, the
16	preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no event shall the
17	applicable percentage exceed one hundred percent (100%).
18	(c) Threshold Amount.
19	For the purposes of this paragraph, the term "threshold amount" shall be determined with
20	the following table:
21	Filing status Amount
22	Single $156,400
23	Married filing jointly of qualifying widow(er) $234,600
24	Married filing separately $117,300
25	Head of Household $195,500
26	(d) Adjustments for inflation.
27	Each dollar amount contained in paragraph (b) shall be increased by an amount equal to:
28	(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by
29	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
30	(5) Phase-out of limitation.
31	(a) In general.
32	In the case of taxable years beginning after December 31, 2005, and before January 1,
33	2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which
34	would be the amount of such reduction.
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1	(b) Applicable fraction.
2	For the purposes of paragraph (a), the applicable fraction shall be determined in
3	accordance with the following table:
4	For taxable years beginning in calendar year The applicable fraction is
5	2006 and 2007 2/3
6	2008 and 2009 1/3
7	(F) Alternative minimum tax.
8	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this
9	subtitle) a tax equal to the excess (if any) of:
10	(a) The tentative minimum tax for the taxable year, over
11	(b) The regular tax for the taxable year.
12	(2) The tentative minimum tax for the taxable year is the sum of:
13	(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus
14	(b) 7.0 percent of so much of the taxable excess above $175,000.
15	(3) The amount determined under the preceding sentence shall be reduced by the
16	alternative minimum tax foreign tax credit for the taxable year.
17	(4) Taxable excess. For the purposes of this subsection the term "taxable excess" means
18	so much of the federal alternative minimum taxable income as modified by the modifications in §
19	44-30-12 as exceeds the exemption amount.
20	(5) In the case of a married individual filing a separate return, subparagraph (2) shall be
21	applied by substituting "$87,500" for $175,000 each place it appears.
22	(6) Exemption amount.
23	For purposes of this section "exemption amount" means:
24	Filing status Amount
25	Single $39,150
26	Married filing jointly or qualifying widow(er) $53,700
27	Married filing separately $26,850
28	Head of Household $39,150
29	Estate or trust $24,650
30	(7) Treatment of unearned income of minor children
31	(a) In general.
32	In the case of a minor child, the exemption amount for purposes of section (6) shall not
33	exceed the sum of:
34	(i) Such child's earned income, plus
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1	(ii) $6,000.
2	(8) Adjustments for inflation.
3	The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount
4	equal to:
5	(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied
6	by
7	(b) The cost-of-living adjustment determined under section (J) with a base year of 2004.
8	(9) Phase-out.
9	(a) In general.
10	The exemption amount of any taxpayer shall be reduced (but not below zero) by an
11	amount equal to twenty-five percent (25%) of the amount by which alternative minimum taxable
12	income of the taxpayer exceeds the threshold amount.
13	(b) Threshold amount.
14	For purposes of this paragraph, the term "threshold amount" shall be determined with the
15	following table:
16	Filing status Amount
17	Single $123,250
18	Married filing jointly or qualifying widow(er) $164,350
19	Married filing separately $82,175
20	Head of Household $123,250
21	Estate or Trust $82,150
22	(c) Adjustments for inflation
23	Each dollar amount contained in paragraph (9) shall be increased by an amount equal to:
24	(i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by
25	(ii) The cost-of-living adjustment determined under section (J) with a base year of 2004.
26	(G) Other Rhode Island taxes.
27	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this
28	subtitle) a tax equal to twenty-five percent (25%) of:
29	(a) The Federal income tax on lump-sum distributions.
30	(b) The Federal income tax on parents' election to report child's interest and dividends.
31	(c) The recapture of Federal tax credits that were previously claimed on Rhode Island
32	return.
33	(H) Tax for children under 18 with investment income.
34	(1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of:
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1	(a) The Federal tax for children under the age of 18 with investment income.
2	(I) Averaging of farm income.
3	(1) General rule. At the election of an individual engaged in a farming business or fishing
4	business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of:
5	(a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C.
6	§ 1301].
7	(J) Cost-of-living adjustment.
8	(1) In general.
9	The cost-of-living adjustment for any calendar year is the percentage (if any) by which:
10	(a) The CPI for the preceding calendar year exceeds
11	(b) The CPI for the base year.
12	(2) CPI for any calendar year.
13	For purposes of paragraph (1), the CPI for any calendar year is the average of the
14	consumer price index as of the close of the twelve (12) month period ending on August 31 of
15	such calendar year.
16	(3) Consumer price index.
17	For purposes of paragraph (2), the term "consumer price index" means the last consumer
18	price index for all urban consumers published by the department of labor. For purposes of the
19	preceding sentence, the revision of the consumer price index that is most consistent with the
20	consumer price index for calendar year 1986 shall be used.
21	(4) Rounding.
22	(a) In general.
23	If any increase determined under paragraph (1) is not a multiple of $50, such increase
24	shall be rounded to the next lowest multiple of $50.
25	(b) In the case of a married individual filing a separate return, subparagraph (a) shall be
26	applied by substituting "$25" for $50 each place it appears.
27	(K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer
28	entitled to any of the following federal credits enacted prior to January 1, 1996 shall be entitled to
29	a credit against the Rhode Island tax imposed under this section:
30	(1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5].
31	(2) Child and dependent care credit;
32	(3) General business credits;
33	(4) Credit for elderly or the disabled;
34	(5) Credit for prior year minimum tax;
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1	(6) Mortgage interest credit;
2	(7) Empowerment zone employment credit;
3	(8) Qualified electric vehicle credit.
4	(L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, a
5	taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode
6	Island tax imposed under this section if the adopted child was under the care, custody, or
7	supervision of the Rhode Island department of children, youth and families prior to the adoption.
8	(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits
9	provided there shall be no deduction based on any federal credits enacted after January 1, 1996,
10	including the rate reduction credit provided by the federal Economic Growth and Tax
11	Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be
12	reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax
13	purposes shall determine the Rhode Island amount to be recaptured in the same manner as
14	prescribed in this subsection.
15	(N) Rhode Island earned-income credit .
16	(1) In general.
17	For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-
18	income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent
19	(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode
20	Island income tax.
21	For tax years beginning on or after January 1, 2015, and before January 1, 2016, a
22	taxpayer entitled to a federal earned-income credit shall be allowed a Rhode Island earned-
23	income credit equal to ten percent (10%) of the federal earned-income credit. Such credit shall
24	not exceed the amount of the Rhode Island income tax.
25	For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal
26	earned-income credit shall be allowed a Rhode Island earned-income credit equal to twelve and
27	one-half percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the
28	amount of the Rhode Island income tax.
29	For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal
30	earned-income credit shall be allowed a Rhode Island earned-income credit equal to fifteen
31	percent (15%) of the federal earned-income credit. Such credit shall not exceed the amount of the
32	Rhode Island income tax.
33	(2) Refundable portion.
34	In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of
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1	this section exceeds the amount of Rhode Island income tax, a refundable earned-income credit
2	shall be allowed as follows.
3	(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2)
4	refundable earned-income credit means fifteen percent (15%) of the amount by which the Rhode
5	Island earned-income credit exceeds the Rhode Island income tax.
6	(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2)
7	refundable earned-income credit means one hundred percent (100%) of the amount by which the
8	Rhode Island earned-income credit exceeds the Rhode Island income tax.
9	(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs
10	(A) through (J) to the general assembly no later than February 1, 2010 and every three (3) years
11	thereafter for inclusion in the statute.
12	(3) For the period January 1, 2011 through December 31, 2011, and thereafter, "Rhode
13	Island taxable income" means federal adjusted gross income as determined under the Internal
14	Revenue Code, 26 U.S.C. 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-
15	30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to
16	subparagraph 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to
17	subparagraph 44-30-2.6(c)(3)(C).
18	(A) Tax imposed.
19	(I) There is hereby imposed on the taxable income of married individuals filing joint
20	returns, qualifying widow(er), every head of household, unmarried individuals, married
21	individuals filing separate returns and bankruptcy estates, a tax determined in accordance with the
22	following table:
23	RI Taxable Income RI Income Tax
24	Over But not over Pay +% on Excess on the amount over
25	$0 - $ 55,000 $ 0 + 3.75% $0
26	55,000 - 125,000 2,063 + 4.75% 55,000
27	125,000 - 5,388 + 5.99% 125,000
28	(II) There is hereby imposed on the taxable income of an estate or trust a tax determined
29	in accordance with the following table:
30	RI Taxable Income RI Income Tax
31	Over But not over Pay + % on Excess on the amount over
32	$0 - $ 2,230 $ 0 + 3.75% $0
33	2,230 - 7,022 84 + 4.75% 2,230
34	7,022 - 312 + 5.99% 7,022
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1	(B) Deductions:
2	(I) Rhode Island Basic Standard Deduction. Only the Rhode Island standard deduction
3	shall be allowed in accordance with the following table:
4	Filing status: Amount
5	Single $7,500
6	Married filing jointly or qualifying widow(er) $15,000
7	Married filing separately $7,500
8	Head of Household $11,250
9	(II) Nonresident alien individuals, estates and trusts are not eligible for standard
10	deductions.
11	(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode
12	Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five
13	thousand dollars ($175,000), the standard deduction amount shall be reduced by the applicable
14	percentage. The term "applicable percentage" means twenty (20) percentage points for each five
15	thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for
16	the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).
17	(C) Exemption Amount:
18	(I) The term "exemption amount" means three thousand five hundred dollars ($3,500)
19	multiplied by the number of exemptions allowed for the taxable year for federal income tax
20	purposes.
21	(II) Exemption amount disallowed in case of certain dependents. In the case of an
22	individual with respect to whom a deduction under this section is allowable to another taxpayer
23	for the same taxable year, the exemption amount applicable to such individual for such
24	individual's taxable year shall be zero.
25	(D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode
26	Island purposes pursuant to § 33-30-12, for the taxable year exceeds one hundred seventy-five
27	thousand dollars ($175,000), the exemption amount shall be reduced by the applicable
28	percentage. The term "applicable percentage" means twenty (20) percentage points for each five
29	thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for
30	the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).
31	(E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-
32	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
33	equal to:
34	(I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-
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1	2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000,
2	multiplied by;
3	(II) The cost-of-living adjustment with a base year of 2000.
4	(III) For the purposes of this section, the cost-of-living adjustment for any calendar year
5	is the percentage (if any) by which the consumer price index for the preceding calendar year
6	exceeds the consumer price index for the base year. The consumer price index for any calendar
7	year is the average of the consumer price index as of the close of the twelve-month (12) period
8	ending on August 31, of such calendar year.
9	(IV) For the purpose of this section the term "consumer price index" means the last
10	consumer price index for all urban consumers published by the department of labor. For the
11	purpose of this section the revision of the consumer price index that is most consistent with the
12	consumer price index for calendar year 1986 shall be used.
13	(V) If any increase determined under this section is not a multiple of fifty dollars
14	($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the
15	case of a married individual filing separate return, if any increase determined under this section is
16	not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower
17	multiple of twenty-five dollars ($25.00).
18	(F) Credits against tax.
19	(I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on
20	or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be
21	as follows:
22	(a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit
23	pursuant to subparagraph 44-30-2.6(c)(2)(N).
24	(b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided
25	in § 44-33-1 et seq.
26	(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax
27	credit as provided in § 44-30.3-1 et seq.
28	(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to
29	other states pursuant to § 44-30-74.
30	(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax
31	credit as provided in § 44-33.2-1 et seq.
32	(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture
33	production tax credit as provided in § 44-31.2-1 et seq.
34	(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of
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1	the federal child and dependent care credit allowable for the taxable year for federal purposes;
2	provided, however, such credit shall not exceed the Rhode Island tax liability.
3	(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for
4	contributions to scholarship organizations as provided in chapter 62 of title 44.
5	(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be
6	taxable as if no withholding were required, but any amount of Rhode Island personal income tax
7	actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax
8	administrator on behalf of the person from whom withheld, and the person shall be credited with
9	having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable
10	year of less than twelve (12) months, the credit shall be made under regulations of the tax
11	administrator.
12	(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested
13	in RI wavemaker fellowship program as provided in § 42-64.26-1 et seq.
14	(k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in
15	§ 42-64.20-1 et seq.
16	(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode
17	Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq.
18	(m) Refundable Investment Tax Credit: Credit shall be allowed for investment tax
19	credits as provided in 44-31-1 et seq. and for refundable investment tax credits as provided in 42-
20	64.33-1 et seq.
21	(n) Refundable Jobs Training Tax Credit: Credit shall be allowed for jobs training tax
22	credits as provided in 42-64.6-1 et seq. and for refundable jobs training tax credits as provided in
23	42-64.34-1 et seq.
24	(2) Except as provided in section 1 above, no other state and federal tax credit shall be
25	available to the taxpayers in computing tax liability under this chapter.
26	SECTION 6. This article shall take effect as of July 1, 2017.
27	ARTICLE 3
28	RELATING TO RHODE ISLAND PROMISE SCHOLARSHIP
29	SECTION 1. Title 16 of the General Laws entitled "Education" is hereby amended by
30	adding thereto the following chapter:
31	CHAPTER 16-107
32	RHODE ISLAND PROMISE SCHOLARSHIP
33	16-107-1. Short title.
34	This chapter shall be known and may be cited as the “Rhode Island Promise Scholarship
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1	Act.”
2	16-107-2. Legislative findings and purpose.
3	(a) The general assembly finds and declares that:
4	(1) Education is critical for the state’s young people to achieve their dreams and develop
5	their talents;
6	(2) The state’s economic success depends on a highly educated and skilled workforce;
7	and
8	(3) The state’s future prosperity depends upon its ability to make educational
9	opportunities beyond high school available for all students as part of a free public education.
10	(b) In order to address the findings set forth in section (a), the purposes of this chapter are
11	to increase:
12	(1) the number of students enrolled at the Community College of Rhode Island, Rhode
13	Island College, and the University of Rhode Island; and
14	(2) the number of students who complete their degree on time at these institutions.
15	16-107-3. Establishment of scholarship program.
16	Beginning with the high school graduating class of 2017, it is hereby established the
17	Rhode Island promise scholarship program. The general assembly shall annually appropriate the
18	funds necessary into a restricted receipt account at each eligible postsecondary institution to
19	implement the purposes of this chapter. In addition to appropriation by the general assembly,
20	charitable donations may be accepted into the scholarship program.
21	16-107-4. Definitions.
22	When used in this chapter, the following terms shall have the following meanings:
23	(a) “Eligible postsecondary institution” means the University of Rhode Island, Rhode
24	Island College or the Community College of Rhode Island;
25	(b) “FAFSA” means the Free Application for Federal Student Aid form;
26	(c) “Mandatory fees and tuition” are the costs that every student is required to pay in
27	order to enroll in classes at the eligible postsecondary institutions, and does not include room and
28	board, textbooks, meal plans or travel.
29	(d) “On track to graduate on time” means the standards determined by the applicable
30	eligible postsecondary institution in establishing the expectation of a student to graduate with:
31	(1) an associate’s degree within 2 years of enrollment; and
32	(2) a bachelor’s degree within 4 years of enrollment;
33	(e) “Scholarship program” means the Rhode Island promise scholarship program that is
34	established pursuant to § 16-107-3; and
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1	(f) “State” means the State of Rhode Island and Providence Plantations.
2	16-107-5. Administration of scholarship program.
3	(a) The financial aid office in conjunction with the office of enrollment, or their
4	respective equivalent offices, at the applicable eligible postsecondary institution, under the
5	supervision of the Council on Postsecondary Education, shall administer the scholarship program
6	for state residents seeking associate and bachelor degrees at eligible postsecondary institutions
7	who meet the eligibility requirements in this chapter.
8	(b) An award of the scholarship program shall cover the cost of 2 years of tuition and
9	mandatory fees at the eligible postsecondary institution less federal and all other financial aid
10	monies available to the recipient-student.
11	(c) The scholarship program limits one award per student.
12	16-107-6. Eligibility for scholarship.
13	(a) Beginning with the students who enroll at an eligible postsecondary institution in the
14	fall of 2017, to be considered for the scholarship, a student:
15	(i) Must qualify for in-state tuition and fees pursuant to the Residency Policy adopted by
16	the Council on Postsecondary Education, as amended, supplemented, restated or otherwise
17	modified from time to time (“residency policy”); provided, that, the student must have satisfied
18	the high school graduation/equivalency diploma condition prior to reaching 19 years of age;
19	provided, further, that in addition to the option of meeting the requirement by receiving a high
20	school equivalency diploma as described in the residency policy, the student can satisfy the
21	condition by receiving other certificates or documents of equivalent nature from the state or its
22	municipalities as recognized by applicable regulations promulgated by the Council on Elementary
23	and Secondary Education;
24	(ii)(1) In the case of a recipient-student with regard to the Community College of Rhode
25	Island, must be admitted to, and must enroll to, attend the institution on a full-time basis by the
26	fall immediately following high school graduation or receipt of the high school equivalency
27	diploma; or
28	(2) In the case of a recipient-student with regard to Rhode Island College or the
29	University of Rhode Island, must be a currently enrolled full-time student who has declared a
30	major and accumulated a minimum of 60 credit hours towards a bachelor’s degree at the student’s
31	current institution;
32	(iii) Must complete the FAFSA by the deadline prescribed by the applicable eligible
33	postsecondary institution for each academic year in which the student seeks to receive funding
34	under the scholarship program;
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1	(iv) Must continue to be enrolled on a full-time basis;
2	(v) Must maintain a minimum of 2.0 grade point average at the applicable eligible
3	postsecondary institution;
4	(vi) Must remain on track to graduate on time at the applicable eligible postsecondary
5	institution; and
6	(vii) Must not have already received an award under the scholarship program.
7	(b) Notwithstanding the eligibility requirements under §§ 16-107-6(a) (“specified
8	conditions”):
9	(i) In the case of a student who has an approved medical or personal leave of absence
10	from an eligible postsecondary institution and is unable to satisfy one or more specified
11	conditions because of the student’s medical or personal circumstances, the student may continue
12	to receive an award under the scholarship program upon resuming the student’s education at the
13	eligible postsecondary institution so long as the student continues to meet all other applicable
14	eligibility requirements; and
15	(ii) In the case of a student who is a member of the national guard or a member of a
16	reserve unit of a branch of the United State military and is unable to satisfy one or more specified
17	conditions because the student is or will be in basic or special military training, or is or will be
18	participating in a deployment of the student’s guard or reserve unit, the student may continue to
19	receive an award under the scholarship program upon completion of the student’s basic or special
20	military training or deployment.
21	16-107-7. Rules and procedures.
22	The Council on Postsecondary Education is hereby authorized to promulgate rules and
23	establish appeal procedures for the award, denial or revocation of funding under the scholarship
24	program, and to otherwise effectuate the purposes of this chapter. The rules shall be promulgated
25	in accordance with § 16-59-4.
26	SECTION 2. Section 16-59-9 of the General Laws in Chapter 16-59 entitled “Board of
27	Governors for Higher Education” is hereby amended to read as follows:
28	16-59-9. Education budget and appropriations.
29	(a) The general assembly shall annually appropriate any sums it deems necessary for
30	support and maintenance of higher education in the state and the state controller is authorized and
31	directed to draw his or her orders upon the general treasurer for the payment of the appropriations
32	or so much of the sums that are necessary for the purposes appropriated, upon the receipt by him
33	or her of proper vouchers as the council on postsecondary education may by rule provide. The
34	council shall receive, review, and adjust the budget for the office of postsecondary commissioner
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1	and present the budget as part of the budget for higher education under the requirements of § 35-
2	3-4.
3	(b) The office of postsecondary commissioner and the institutions of public higher
4	education shall establish working capital accounts.
5	(c) Any tuition or fee increase schedules in effect for the institutions of public higher
6	education shall be received by the council on postsecondary education for allocation for the fiscal
7	year for which state appropriations are made to the council by the general assembly; provided that
8	no further increases may be made by the board of education or the council on postsecondary
9	education for the year for which appropriations are made. Except that these provisions shall not
10	apply to the revenues of housing, dining, and other auxiliary facilities at the University of Rhode
11	Island, Rhode Island College, and the Community Colleges including student fees as described in
12	P.L. 1962, ch. 257 pledged to secure indebtedness issued at any time pursuant to P.L. 1962, ch.
13	257 as amended.
14	(d) All housing, dining, and other auxiliary facilities at all public institutions of higher
15	learning shall be self-supporting and no funds shall be appropriated by the general assembly to
16	pay operating expenses, including principal and interest on debt services, and overhead expenses
17	for the facilities, with the exception of the mandatory fees and tuition covered by the Rhode
18	Island Promise scholarship program as established by 16-107-3. Any debt-service costs on
19	general obligation bonds presented to the voters in November 2000 and November 2004 or
20	appropriated funds from the Rhode Island capital plan for the housing auxiliaries at the University
21	of Rhode Island and Rhode Island College shall not be subject to this self-supporting requirement
22	in order to provide funds for the building construction and rehabilitation program. The institutions
23	of public higher education will establish policies and procedures that enhance the opportunity for
24	auxiliary facilities to be self-supporting, including that all faculty provide timely and accurate
25	copies of booklist for required textbooks to the public higher educational institution's bookstore.
26	(e) The additional costs to achieve self-supporting status shall be by the implementation
27	of a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,
28	operating expenses, principal, and interest on debt services, and overhead expenses.
29	(f) The board of education is authorized to establish a restricted-receipt account for the
30	Westerly Higher Education and Industry Center (also known as the Westerly Job Skills Center or
31	Westerly Higher Education Learning Center) and to collect lease payments from occupying
32	companies, and fees from room and service rentals, to support the operation and maintenance of
33	the facility. All such revenues shall be deposited to the restricted-receipt account.
34	SECTION 3. This article shall take effect upon passage.
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1	ARTICLE 4
2	RELATING TO DIVISION OF MOTOR VEHICLES
3	SECTION 1. Chapter 31-2 of the General Laws entitled “Division of Motor Vehicles” is
4	hereby amended by adding thereto the following section:
5	31-2-27. Technology surcharge fee.
6	(a) The division of motor vehicles shall collect a technology surcharge fee of one dollar
7	and fifty cents ($1.50) per transaction for every division of motor vehicles fee transaction, except
8	as otherwise provided by law. All technology surcharge fees collected pursuant to this section
9	shall be deposited into a division of motor vehicles registry technology restricted receipt account
10	and shall be used for debt service, project-related payments and/or ongoing maintenance of and
11	enhancements to the division of motor vehicles’ computer system.
12	(b) Authorization to collect the technology surcharge fee provided for in subsection (a)
13	shall sunset and expire on June 30, 2022.
14	SECTION 2. Section 31-3-33 of the General Laws in Chapter 31-3 entitled “Registration
15	of Vehicles” is hereby amended to read as follows:
16	31-3-33. Renewal of registration.
17	(a) Application for renewal of a vehicle registration shall be made by the owner on a
18	proper application form and by payment of the registration fee for the vehicle as provided by law.
19	(b) The division of motor vehicles may receive applications for renewal of registration,
20	and may grant the renewal and issue new registration cards and plates at any time prior to
21	expiration of registration.
22	(c) Upon renewal, owners will be issued a renewal sticker for each registration plate that
23	shall be placed at the bottom, right-hand corner of the plate. Owners shall be issued a new, fully
24	reflective plate beginning April 1, 2017 2018, at the time of initial registration or at the renewal
25	of an existing registration and reissuance will be conducted no less than every ten (10) years.
26	SECTION 3. Section 39-18.1-5 of the General Laws in Chapter 39-18.1 entitled
27	"Transportation Investment and Debt Reduction Act of 2011" is hereby amended to read as
28	follows:
29	39-18.1-5. Allocation of funds.
30	(a) The monies in the highway maintenance fund account to be directed to the department
31	of transportation pursuant to subdivision (a)(1) of this section this chapter shall be allocated
32	through the transportation improvement program process to provide the state match for federal
33	transportation funds, in place of borrowing, as approved by the state planning council. The
34	expenditure of moneys in the highway maintenance fund shall only be authorized for projects that
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1	appear in the state's transportation improvement program.
2	(b) Provided however, that beginning with fiscal year 2015 and annually thereafter, the
3	department of transportation will allocate necessary funding to programs that are designed to
4	eliminate structural deficiencies of the state's bridge, road and maintenance systems and
5	infrastructure.
6	(c) Provided further that beginning July 1, 2015, five percent (5%) of available proceeds
7	in the Rhode Island highway maintenance account shall be allocated annually to the Rhode Island
8	public transit authority for operating expenditures.
9	(d) Provided further that beginning July 1, 2017, one half of one percent (0.5%) of
10	available proceeds in the Rhode Island highway maintenance account shall be allocated annually
11	to the division of motor vehicles for operating expenditures.
12	SECTION 4. This article shall take effect as of July 1, 2017.
13	ARTICLE 5
14	RELATING TO GOVERNMENT REORGANIZATION
15	SECTION 1. Sections 12-2.2-1 and 12-2.2-5 of the General Laws in Chapter 12-2.2
16	entitled “Capitol Police for Public Buildings” are hereby amended to read as follows:
17	12-2.2-1. Appointment of capitol police.
18	The director commissioner of public safety may appoint qualified persons to act as
19	"capitol police officers," who shall be members of the state classified service. Upon appointment
20	of an officer, the director commissioner shall issue to the person a license to act as a capitol
21	police officer and the license shall, in the courts of this state, be evidence of the validity of the
22	appointment of the person named and of his or her authority to act as a capitol police officer at
23	any of the buildings or grounds within the jurisdiction of the division of public buildings as
24	assigned by the chief of public buildings.
25	12-2.2-5. Classes in law enforcement.
26	All capitol police shall be required to attend and successfully complete any law
27	enforcement courses that the director commissioner of public safety shall require. These law
28	enforcement courses will be conducted by either the state police or the municipal police training
29	school for the benefit of the capitol police.
30	SECTION 2. Section 30-15-5 of the General Laws in Chapter 30-15 entitled
31	“Emergency Management” is hereby amended to read as follows:
32	30-15-5. Emergency management preparedness agency created – Personnel –
33	Facilities.
34	(a) There is hereby created within the executive department the department of public
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1	safety, the Rhode Island emergency management agency (hereinafter in this chapter called the
2	"agency"), to be headed by a director, who shall be appointed by, and serve at the pleasure of, the
3	governor and who shall be in the unclassified service.
4	(b) The director may employ such technical, clerical, stenographic, and other personnel,
5	all of whom shall be in the classified service, except for one administrative executive officer who
6	shall be in the unclassified service, and may make such expenditures within the appropriation
7	therefor, or from other funds made available for the purposes of this chapter, as may be necessary
8	to carry out the purposes of this chapter, consistent with other applicable provisions of law.
9	(c) The agency may provide itself with appropriate office space, furniture, equipment,
10	supplies, stationery, and printing.
11	(d) The director, subject to the direction and control of the governor, shall be the head of
12	the agency, and shall be responsible to the governor for carrying out the program for disaster
13	preparedness of this state. The director shall coordinate the activities of all organizations for
14	disasters within the state and shall maintain liaison with and cooperate with disaster agencies and
15	organizations of other states and of the federal government. The director shall have such
16	additional authority, duties, and responsibilities authorized by this chapter as may be prescribed
17	by the commissioner of public safety or the governor.
18	(e) Wherever in the general or public laws, or any rule or regulation, any reference to the
19	"executive director" shall appear, it shall be deemed to mean and shall mean "the director."
20	SECTION 3. Section 36-4-2 of the General Laws in Chapter 36-4 entitled “Merit
21	System” is hereby amended to read as follows:
22	36-4-2. Positions in unclassified service.
23	(a) The classified service shall comprise all positions in the state service, now existing or
24	hereinafter established, except the following specific positions which, with other positions
25	heretofore or hereinafter specifically exempted by legislative act, shall constitute the unclassified
26	service:
27	(1) Officers and legislators elected by popular vote and persons appointed to fill
28	vacancies in elective offices.
29	(2) Employees of both houses of the general assembly.
30	(3) Officers, secretaries, and employees of the office of the governor, office of the
31	lieutenant governor, department of state, department of the attorney general, and the treasury
32	department.
33	(4) Members of boards and commissions appointed by the governor, members of the state
34	board of elections and the appointees of the board, members of the commission for human rights
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1	and the employees of the commission, and directors of departments.
2	(5) The following specific offices:
3	(i) In the department of administration: director, chief information officer, cybersecurity
4	officer, director of office of management and budget, director of performance management,
5	deputy director, chief of staff, public information officer and legislative/policy director, and
6	within the health benefits exchange: director, deputy director, administrative assistant, senior
7	policy analyst, and chief strategic planning monitoring and evaluation;
8	(ii) In the department of business regulation: director;
9	(iii) In the department of elementary and secondary education: commissioner of
10	elementary and secondary education;
11	(iv) In the department of higher education: commissioner of postsecondary education;
12	(v) In the department of health: director, executive director, and deputy director, and
13	legislative liaison;
14	(vi) In the department of labor and training: director, administrative assistant,
15	administrator of the labor board and legal counsel to the labor board, executive director, and
16	communications director;
17	(vii) In the department of environmental management: director, chief of staff, chief public
18	affairs officer, and policy director;
19	(viii) In the department of transportation: director, chief operating officer,
20	administrator/division of project management, administrator/division of planning, chief of staff,
21	communications director, legislative director, and policy director;
22	(ix) In the department of human services: director, and director of veterans' affairs,
23	deputy director, chief of staff, communications/legislative coordinator, and policy director;
24	(x) In the state properties committee: secretary;
25	(xi) In the workers' compensation court: judges, administrator, deputy administrator,
26	clerk, assistant clerk, clerk secretary;
27	(xii) In the division of elderly affairs: director;
28	(xiii) In the department of behavioral healthcare, developmental disabilities and hospitals:
29	director;
30	(xiv) In the department of corrections: director, assistant director (institutions/operations),
31	assistant director (rehabilitative services), assistant director (administration), and wardens;
32	(xv) In the department of children, youth and families: director, one assistant director,
33	one associate director, one executive director, and a chief of staff;
34	(xvi) In the public utilities commission: public utilities administrator;
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1	(xvii) In the water resources board: general manager;
2	(xviii) In the human resources investment council: executive director.
3	(xix) In the office of health and human services: secretary of health and human services
4	and medicaid director.
5	(xx) In the office of commerce: secretary, deputy secretary, chief of staff,
6	communications director, legislative director, and policy director.
7	(6) Chief of the hoisting engineers, licensing division, and his or her employees;
8	executive director of the veterans memorial building and his or her clerical employees.
9	(7) One confidential stenographic secretary for each director of a department and each
10	board and commission appointed by the governor.
11	(8) Special counsel, special prosecutors, regular and special assistants appointed by the
12	attorney general, the public defender and employees of his or her office, and members of the
13	Rhode Island bar occupying a position in the state service as legal counsel to any appointing
14	authority.
15	(9) The academic and/or commercial teaching staffs of all state institution schools, with
16	the exception of those institutions under the jurisdiction of the board of regents for elementary
17	and secondary education and the board of governors for higher education.
18	(10) Members of the military or naval forces, when entering or while engaged in the
19	military or naval service.
20	(11) Judges, referees, receivers, clerks, assistant clerks, and clerical assistants of the
21	supreme, superior, family, and district courts, the traffic tribunal, security officers of the traffic
22	tribunal, jurors, and any persons appointed by any court.
23	(12) Election officials and employees.
24	(13) Deputy sheriffs and other employees of the sheriffs division within the department
25	of public safety.
26	(14) Patient or inmate help in state charitable, penal, and correctional institutions and
27	religious instructors of these institutions and student nurses in training, residents in psychiatry in
28	training, and clinical clerks in temporary training at the institute of mental health within the state
29	of Rhode Island medical center.
30	(15)(i) Persons employed to make or conduct a temporary and special inquiry,
31	investigation, project, or examination on behalf of the legislature, or a committee therefor, or on
32	behalf of any other agency of the state if the inclusion of these persons in the unclassified service
33	is approved by the personnel administrator. The personnel administrator shall notify the house
34	fiscal advisor and the senate fiscal advisor whenever he or she approves the inclusion of a person
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1	in the unclassified service.
2	(ii) The duration of the appointment of a person, other than the persons enumerated in
3	this section, shall not exceed ninety (90) days or until presented to the department of
4	administration. The department of administration may extend the appointment another ninety (90)
5	days. In no event shall the appointment extend beyond one hundred eighty (180) days.
6	(16) Members of the division of state police within the department of public safety.
7	(17) Executive secretary of the Blackstone Valley district commission.
8	(18) Artist and curator of state-owned art objects.
9	(19) Mental health advocate.
10	(20) Child advocate.
11	(21) The position of aquaculture coordinator and marine infrastructure specialist within
12	the coastal resources management council.
13	(22) Employees of the office of the health insurance commissioner.
14	(23) In the department of revenue: the director, secretary, attorney.
15	(24) In the department of public safety: the director commissioner, policy director,
16	cybersecurity officer, and director of the emergency management agency and his/her
17	administrative executive officer.
18	(b) Provided, however, that, if any position added to the unclassified service by
19	legislative act after January 1, 2015, is occupied by a classified employee on June 30, 2015, such
20	position shall remain in the classified service until such position becomes vacant.
21	SECTION 4. Sections 42-7.3-3.2, 42-7.3-3.3, 42-7.3-5 and 42-7.3-6 of the General Laws
22	in Chapter 42-7.3 entitled “Department of Public Safety” are hereby amended to read as follows:
23	42-7.3-1. Declaration of purpose.
24	The purpose of this chapter is to establish a public safety department. This department is
25	responsible to consolidate the law enforcement and emergency management services presently
26	provided by six seven divisions and agencies within the executive branch of state government.
27	The consolidation of these divisions and agencies into a department of public safety will assure
28	the provision of professional services; will enable the most efficient and effective use of the
29	state's public safety resources; will allow for the consolidation of such functions as
30	communications, training, and operating procedures; and will protect the lives and promote the
31	safety of the citizens of this state.
32	42-7.3-3. Powers and duties of the department.
33	The department of public safety shall be responsible for the management and
34	administration of the following divisions and agencies:
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1	(a) Office of the capitol police (chapter 2.2 of title 12).
2	(b) State fire marshal (chapter 28.2 of title 23).
3	(c) E-911 emergency telephone system division (chapter 28.2 of title 39).
4	(d) Rhode Island state police (chapter 28 of title 39).
5	(e) Municipal police training academy (chapter 28.2 of title 42).
6	(f) Division of sheriffs (chapter 7.3 of title 42).
7	(g) Emergency management agency (chapter 15 of title 30).
8	42-7.3-3.2. Division of sheriffs.
9	(a) Division established. A division of sheriffs is hereby established within the
10	department of public safety. This division shall be responsible for statewide activities assigned by
11	law which relate to the duties and functions of the sheriffs of the several counties. The division
12	also shall be responsible for all statewide activities assigned by law which relate to the duties and
13	functions of state marshals. Among its other responsibilities, the division shall also be responsible
14	for courtroom security and cellblocks in all state courthouses, training of personnel, transportation
15	of individuals charged with crimes, and special operations.
16	(b) Powers and Duties.
17	(1) The division of sheriffs shall have the following powers and duties:
18	(i) To provide and maintain security for judges at all state courts;
19	(ii) To provide and maintain security in all courtrooms and other public areas within state
20	courthouses;
21	(iii) To provide and maintain security in the cellblocks in all state courts, and exercise all
22	powers as required and prescribed in all other provisions of the general laws and public laws
23	relating to the powers and duties of sheriffs.
24	(2) The division of sheriffs shall also have the following powers and duties previously
25	performed by the Rhode Island marshals:
26	(i) To be responsible for transportation statewide of prisoners to and from police
27	departments, the adult correctional institutions, all courthouses, and other places of detention;
28	(ii) To transport persons arrested by state and local police departments to places of
29	detention; provided, however, nothing in this subsection shall prevent state and local police
30	departments from transporting those persons;
31	(iii) To supervise the conduct of and maintain order and discipline of the prisoners in
32	their custody;
33	(iv) To be responsible for the custody and safety of prisoners while being transported to
34	and from court sessions, places of detention, and outside hospitals prior to commitment to the
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1	adult correctional institutions;
2	(v) To be responsible for the custody and security of prisoners detained in the cellblock
3	areas in the Kent County courthouse and Providence County superior courthouse and for the
4	security of these prisoners during the hearing of their cases, and while in outside hospitals prior to
5	commitment to the adult correctional institutions;
6	(vi) To be responsible for the safety and welfare of prisoners in their custody;
7	(vii) To provide all security in connection with transportation in the execution of
8	extraditions, including, but not limited to, warrants, IAD (Interstate Agreement on Detainers),
9	arrest affidavits, interstate compact extradition, and criminal detainers; and
10	(viii) To carry firearms as prescribed.
11	(c) The director commissioner of the department of public safety shall appoint deputy
12	sheriffs pursuant to a rank structure determined by the director commissioner of the department of
13	public safety and other necessary classifications, subject to the appropriation process, to provide
14	assistance in the areas of courthouse and cellblock security, transportation of prisoners, staff
15	training and special operations. All employees in the division of sheriffs shall be in the
16	unclassified service pursuant to subdivision 36-4-2(a)(13).
17	42-7.3-5. Director Commissioner of public safety – Appointment.
18	(a) The department of public safety shall be administered by a director, who shall also
19	serve as superintendent of the Rhode Island state police. commissioner. The director
20	commissioner shall be appointed by the governor and shall be subject to advice and consent of the
21	senate. The commissioner shall hold office at the pleasure of the governor and until a successor
22	is appointed and qualified.
23	(b) Wherever in the general or public laws, or any rule or regulation, any reference to the
24	director of the department of public safety shall appear, it shall be deemed to mean and shall
25	mean the commissioner of the department of public safety.
26	42-7.3-6. Duties and responsibilities of the director commissioner.
27	(a) The director commissioner shall be responsible to the governor for managing the
28	department of public safety and for providing strategic leadership and direction to the divisions
29	and agencies within the department. The director of public safety is authorized to:
30	(b) Coordinate the administration and financing of public safety services and programs.
31	(c) Serve as the governor's chief advisor and liaison to federal policymakers on public
32	safety issues as well as the principal point of contact in the state on any such related matters.
33	(d) Resolve administrative, jurisdictional, operational, program, or policy conflicts
34	among divisions and agencies and to take necessary action;
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1	(e) Assure continued progress toward improving the quality, the economy, the
2	accountability and the efficiency of state-administered public safety services;
3	(f) Prepare and integrate comprehensive budgets for the divisions and agencies within the
4	department.
5	(g) Utilize objective data to evaluate public safety goals, resource use and outcome
6	evaluation and to perform short and long-term policy planning and development.
7	(h) Conduct independent reviews of state public safety programs.
8	(i) Provide regular and timely reports to the governor and make recommendations with
9	respect to the state's public safety needs.
10	(j) Employ such personnel and contract for such consulting services as may be required to
11	perform the powers and duties lawfully conferred upon the director commissioner.
12	42-7.3-8. Appointment of employees.
13	The director commissioner, subject to the provisions of applicable state law and except as
14	otherwise provided for under applicable state law, shall be the appointing authority for all
15	employees of the department of public safety.
16	42-7.3-9. Rules and regulations.
17	The department of public safety is authorized to make and promulgate such rules and
18	regulations as he or she the commissioner deems necessary for the proper administration of this
19	chapter and to carry out the purposes thereof.
20	SECTION 5. Section 42-28-3 of the General Laws in Chapter 42-28 entitled “State
21	Police” is hereby amended to read as follows:
22	42-28-3. Scope of responsibilities.
23	(a) The Rhode Island state police and the superintendent shall be charged with the
24	responsibility of:
25	(1) Providing a uniformed force for law enforcement;
26	(2) Preparing rules and regulations for law enforcement;
27	(3) Maintaining facilities for crime detection and suppression; and
28	(4) Controlling traffic and maintaining safety on the highways.
29	(b) The superintendent shall be ex-officio state fire marshal.
30	(c) The superintendent shall also serve as the director of the department of public safety.
31	SECTION 6. Chapter 23-17.12 of the General Laws entitled "Health Care Services -
32	Utilization Review Act" is hereby repealed in its entirety.
33	23-17.12-1. Purpose of chapter.
34	The purpose of the chapter is to:
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1	(1) Promote the delivery of quality health care in a cost effective manner;
2	(2) Foster greater coordination between health care providers, patients, payors and
3	utilization review entities;
4	(3) Protect patients, businesses, and providers by ensuring that review agents are
5	qualified to perform utilization review activities and to make informed decisions on the
6	appropriateness of medical care; and
7	(4) Ensure that review agents maintain the confidentiality of medical records in
8	accordance with applicable state and federal laws.
9	23-17.12-2. Definitions.
10	As used in this chapter, the following terms are defined as follows:
11	(1) "Adverse determination" means a utilization review decision by a review agent not to
12	authorize a health care service. A decision by a review agent to authorize a health care service in
13	an alternative setting, a modified extension of stay, or an alternative treatment shall not constitute
14	an adverse determination if the review agent and provider are in agreement regarding the
15	decision. Adverse determinations include decisions not to authorize formulary and nonformulary
16	medication.
17	(2) "Appeal" means a subsequent review of an adverse determination upon request by a
18	patient or provider to reconsider all or part of the original decision.
19	(3) "Authorization" means the review agent's utilization review, performed according to
20	subsection 23-17.12-2(20), concluded that the allocation of health care services of a provider,
21	given or proposed to be given to a patient was approved or authorized.
22	(4) "Benefit determination" means a decision of the enrollee's entitlement to payment for
23	covered health care services as defined in an agreement with the payor or its delegate.
24	(5) "Certificate" means a certificate of registration granted by the director to a review
25	agent.
26	(6) "Complaint" means a written expression of dissatisfaction by a patient, or provider.
27	The appeal of an adverse determination is not considered a complaint.
28	(7) "Concurrent assessment" means an assessment of the medical necessity and/or
29	appropriateness of health care services conducted during a patient's hospital stay or course of
30	treatment. If the medical problem is ongoing, this assessment may include the review of services
31	after they have been rendered and billed. This review does not mean the elective requests for
32	clarification of coverage or claims review or a provider's internal quality assurance program
33	except if it is associated with a health care financing mechanism.
34	(8) "Department" means the department of health.
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1	(9) "Director" means the director of the department of health.
2	(10) "Emergent health care services" has the same meaning as that meaning contained in
3	the rules and regulations promulgated pursuant to chapter 12.3 of title 42 as may be amended
4	from time to time and includes those resources provided in the event of the sudden onset of a
5	medical, mental health, or substance abuse or other health care condition manifesting itself by
6	acute symptoms of a severity (e.g. severe pain) where the absence of immediate medical attention
7	could reasonably be expected to result in placing the patient's health in serious jeopardy, serious
8	impairment to bodily or mental functions, or serious dysfunction of any body organ or part.
9	(11) "Patient" means an enrollee or participant in all hospital or medical plans seeking
10	health care services and treatment from a provider.
11	(12) "Payor" means a health insurer, self-insured plan, nonprofit health service plan,
12	health insurance service organization, preferred provider organization, health maintenance
13	organization or other entity authorized to offer health insurance policies or contracts or pay for
14	the delivery of health care services or treatment in this state.
15	(13) "Practitioner" means any person licensed to provide or otherwise lawfully providing
16	health care services, including, but not limited to, a physician, dentist, nurse, optometrist,
17	podiatrist, physical therapist, clinical social worker, or psychologist.
18	(14) "Prospective assessment" means an assessment of the medical necessity and/or
19	appropriateness of health care services prior to services being rendered.
20	(15) "Provider" means any health care facility, as defined in § 23-17-2 including any
21	mental health and/or substance abuse treatment facility, physician, or other licensed practitioners
22	identified to the review agent as having primary responsibility for the care, treatment, and
23	services rendered to a patient.
24	(16) "Retrospective assessment" means an assessment of the medical necessity and/or
25	appropriateness of health care services that have been rendered. This shall not include reviews
26	conducted when the review agency has been obtaining ongoing information.
27	(17) "Review agent" means a person or entity or insurer performing utilization review
28	that is either employed by, affiliated with, under contract with, or acting on behalf of:
29	(i) A business entity doing business in this state;
30	(ii) A party that provides or administers health care benefits to citizens of this state,
31	including a health insurer, self-insured plan, non-profit health service plan, health insurance
32	service organization, preferred provider organization or health maintenance organization
33	authorized to offer health insurance policies or contracts or pay for the delivery of health care
34	services or treatment in this state; or
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1	(iii) A provider.
2	(18) "Same or similar specialty" means a practitioner who has the appropriate training
3	and experience that is the same or similar as the attending provider in addition to experience in
4	treating the same problems to include any potential complications as those under review.
5	(19) "Urgent health care services" has the same meaning as that meaning contained in the
6	rules and regulations promulgated pursuant to chapter 12.3 of title 42 as may be amended from
7	time to time and includes those resources necessary to treat a symptomatic medical, mental
8	health, or substance abuse or other health care condition requiring treatment within a twenty-four
9	(24) hour period of the onset of such a condition in order that the patient's health status not
10	decline as a consequence. This does not include those conditions considered to be emergent
11	health care services as defined in subdivision (10).
12	(20) "Utilization review" means the prospective, concurrent, or retrospective assessment
13	of the necessity and/or appropriateness of the allocation of health care services of a provider,
14	given or proposed to be given to a patient. Utilization review does not include:
15	(i) Elective requests for the clarification of coverage; or
16	(ii) Benefit determination; or
17	(iii) Claims review that does not include the assessment of the medical necessity and
18	appropriateness; or
19	(iv) A provider's internal quality assurance program except if it is associated with a health
20	care financing mechanism; or
21	(v) The therapeutic interchange of drugs or devices by a pharmacy operating as part of a
22	licensed inpatient health care facility; or
23	(vi) The assessment by a pharmacist licensed pursuant to the provisions of chapter 19 of
24	title 5 and practicing in a pharmacy operating as part of a licensed inpatient health care facility in
25	the interpretation, evaluation and implementation of medical orders, including assessments and/or
26	comparisons involving formularies and medical orders.
27	(21) "Utilization review plan" means a description of the standards governing utilization
28	review activities performed by a private review agent.
29	(22) "Health care services" means and includes an admission, diagnostic procedure,
30	therapeutic procedure, treatment, extension of stay, the ordering and/or filling of formulary or
31	nonformulary medications, and any other services, activities, or supplies that are covered by the
32	patient's benefit plan.
33	(23) "Therapeutic interchange" means the interchange or substitution of a drug with a
34	dissimilar chemical structure within the same therapeutic or pharmacological class that can be
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1	expected to have similar outcomes and similar adverse reaction profiles when given in equivalent
2	doses, in accordance with protocols approved by the president of the medical staff or medical
3	director and the director of pharmacy.
4	23-17.12-3. General certificate requirements.
5	(a) A review agent shall not conduct utilization review in the state unless the department
6	has granted the review agent a certificate.
7	(b) Individuals shall not be required to hold separate certification under this chapter when
8	acting as either an employee of, an affiliate of, a contractor for, or otherwise acting on behalf of a
9	certified review agent.
10	(c) The department shall issue a certificate to an applicant that has met the minimum
11	standards established by this chapter, and regulations promulgated in accordance with it,
12	including the payment of any fees as required, and other applicable regulations of the department.
13	(d) A certificate issued under this chapter is not transferable, and the transfer of fifty
14	percent (50%) or more of the ownership of a review agent shall be deemed a transfer.
15	(e) After consultation with the payors and providers of health care, the department shall
16	adopt regulations necessary to implement the provisions of this chapter.
17	(f) The director of health is authorized to establish any fees for initial application,
18	renewal applications, and any other administrative actions deemed necessary by the director to
19	implement this chapter.
20	(g) The total cost of certification under this title shall be borne by the certified entities
21	and shall be one hundred and fifty percent (150%) of the total salaries paid to the certifying
22	personnel of the department engaged in those certifications less any salary reimbursements and
23	shall be paid to the director to and for the use of the department. That assessment shall be in
24	addition to any taxes and fees otherwise payable to the state.
25	(h) The application and other fees required under this chapter shall be sufficient to pay
26	for the administrative costs of the certificate program and any other reasonable costs associated
27	with carrying out the provisions of this chapter.
28	(i) A certificate expires on the second anniversary of its effective date unless the
29	certificate is renewed for a two (2) year term as provided in this chapter.
30	(j) Any systemic changes in the review agents operations relative to certification
31	information on file shall be submitted to the department for approval within thirty (30) days prior
32	to implementation.
33	23-17.12-4. Application process.
34	(a) An applicant requesting certification or recertification shall:
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1	(1) Submit an application provided by the director; and
2	(2) Pay the application fee established by the director through regulation and § 23-17.12-
3	3(f).
4	(b) The application shall:
5	(1) Be on a form and accompanied by supporting documentation that the director
6	requires; and
7	(2) Be signed and verified by the applicant.
8	(c) Before the certificate expires, a certificate may be renewed for an additional two (2)
9	years.
10	(d) If a completed application for recertification is being processed by the department, a
11	certificate may be continued until a renewal determination is made.
12	(e) In conjunction with the application, the review agent shall submit information that the
13	director requires including:
14	(1) A request that the state agency regard specific portions of the standards and criteria or
15	the entire document to constitute "trade secrets" within the meaning of that term in § 38-2-
16	2(4)(i)(B);
17	(2) The policies and procedures to ensure that all applicable state and federal laws to
18	protect the confidentiality of individual medical records are followed;
19	(3) A copy of the materials used to inform enrollees of the requirements under the health
20	benefit plan for seeking utilization review or pre-certification and their rights under this chapter,
21	including information on appealing adverse determinations;
22	(4) A copy of the materials designed to inform applicable patients and providers of the
23	requirements of the utilization review plan;
24	(5) A list of the third party payors and business entities for which the review agent is
25	performing utilization review in this state and a brief description of the services it is providing for
26	each client; and
27	(6) Evidence of liability insurance or of assets sufficient to cover potential liability.
28	(f) The information provided must demonstrate that the review agent will comply with
29	the regulations adopted by the director under this chapter.
30	23-17.12-5. General application requirements.
31	An application for certification or recertification shall be accompanied by documentation
32	to evidence the following:
33	(1) The requirement that the review agent provide patients and providers with a summary
34	of its utilization review plan including a summary of the standards, procedures and methods to be
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1	used in evaluating proposed or delivered health care services;
2	(2) The circumstances, if any, under which utilization review may be delegated to any
3	other utilization review program and evidence that the delegated agency is a certified utilization
4	review agency delegated to perform utilization review pursuant to all of the requirements of this
5	chapter;
6	(3) A complaint resolution process consistent with subsection 23-17.12-2(6) and
7	acceptable to the department, whereby patients, their physicians, or other health care providers
8	may seek resolution of complaints and other matters of which the review agent has received
9	written notice;
10	(4) The type and qualifications of personnel (employed or under contract) authorized to
11	perform utilization review, including a requirement that only a practitioner with the same license
12	status as the ordering practitioner, or a licensed physician or dentist, is permitted to make a
13	prospective or concurrent adverse determination;
14	(5) The requirement that a representative of the review agent is reasonably accessible to
15	patients, patient's family and providers at least five (5) days a week during normal business in
16	Rhode Island and during the hours of the agency's review operations;
17	(6) The policies and procedures to ensure that all applicable state and federal laws to
18	protect the confidentiality of individual medical records are followed;
19	(7) The policies and procedures regarding the notification and conduct of patient
20	interviews by the review agent;
21	(8) The requirement that no employee of, or other individual rendering an adverse
22	determination for, a review agent may receive any financial incentives based upon the number of
23	denials of certification made by that employee or individual;
24	(9) The requirement that the utilization review agent shall not impede the provision of
25	health care services for treatment and/or hospitalization or other use of a provider's services or
26	facilities for any patient;
27	(10) Evidence that the review agent has not entered into a compensation agreement or
28	contract with its employees or agents whereby the compensation of its employees or its agents is
29	based upon a reduction of services or the charges for those services, the reduction of length of
30	stay, or utilization of alternative treatment settings; provided, nothing in this chapter shall prohibit
31	agreements and similar arrangements; and
32	(11) An adverse determination and internal appeals process consistent with § 23-17.12-9
33	and acceptable to the department, whereby patients, their physicians, or other health care
34	providers may seek prompt reconsideration or appeal of adverse determinations by the review
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1	agent.
2	23-17.12-6. Denial, suspension, or revocation of certificate.
3	(a) The department may deny a certificate upon review of the application if, upon review
4	of the application, it finds that the applicant proposing to conduct utilization review does not meet
5	the standards required by this chapter or by any regulations promulgated pursuant to this chapter.
6	(b) The department may revoke a certificate and/or impose reasonable monetary penalties
7	not to exceed five thousand dollars ($5,000) per violation in any case in which:
8	(1) The review agent fails to comply substantially with the requirements of this chapter or
9	of regulations adopted pursuant to this chapter;
10	(2) The review agent fails to comply with the criteria used by it in its application for a
11	certificate; or
12	(3) The review agent refuses to permit examination by the director to determine
13	compliance with the requirements of this chapter and regulations promulgated pursuant to the
14	authority granted to the director in this chapter; provided, however, that the examination shall be
15	subject to the confidentiality and "need to know" provisions of subdivisions 23-17.12-9(c)(4) and
16	(5). These determinations may involve consideration of any written grievances filed with the
17	department against the review agent by patients or providers.
18	(c) Any applicant or certificate holder aggrieved by an order or a decision of the
19	department made under this chapter without a hearing may, within thirty (30) days after notice of
20	the order or decision, make a written request to the department for a hearing on the order or
21	decision pursuant to § 42-35-15.
22	(d) The procedure governing hearings authorized by this section shall be in accordance
23	with §§ 42-35-9 – 42-35-13 as stipulated in § 42-35-14(a). A full and complete record shall be
24	kept of all proceedings, and all testimony shall be recorded but need not be transcribed unless the
25	decision is appealed pursuant to § 42-35-15. A copy or copies of the transcript may be obtained
26	by any interested party upon payment of the cost of preparing the copy or copies. Witnesses may
27	be subpoenaed by either party.
28	23-17.12-7. Judicial review.
29	Any person who has exhausted all administrative remedies available to him or her within
30	the department, and who is aggrieved by a final decision of the department under § 23-17.12-6, is
31	entitled to judicial review pursuant to §§ 42-35-15 and 42-35-16.
32	23-17.12-8. Waiver of requirements.
33	(a) Except for utilization review agencies performing utilization review activities to
34	determine the necessity and/or appropriateness of substance abuse and mental health care,
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1	treatment or services, the department shall waive all the requirements of this chapter, with the
2	exception of those contained in §§ 23-17.12-9, (a)(1)-(3), (5), (6), (8), (b)(1)-(6), and (c)(2)-(6),
3	23-17.12-12, and 23-17.12-14, for a review agent that has received, maintains and provides
4	evidence to the department of accreditation from the utilization review accreditation commission
5	(URAC) or other organization approved by the director. The waiver shall be applicable only to
6	those services that are included under the accreditation by the utilization review accreditation
7	commission or other approved organization.
8	(b) The department shall waive the requirements of this chapter only when a direct
9	conflict exists with those activities of a review agent that are conducted pursuant to contracts with
10	the state or the federal government or those activities under other state or federal jurisdictions.
11	(c) The limitation in subsection 23-17.12-8(b) notwithstanding, the department may
12	waive or exempt all or part of the requirements of this chapter by mutual written agreement with
13	a state department or agency when such waiver or exemption is determined to be necessary and
14	appropriate to the administration of a health care related program. The department shall
15	promulgate such regulations as deemed appropriate to implement this provision.
16	23-17.12-8.1. Variance of statutory requirements.
17	(a) The department is authorized to issue a statutory variance from one or more of the
18	specific requirements of this chapter to a review agent where it determines that such variance is
19	necessary to permit the review agent to evaluate and address practitioner billing and practice
20	patterns when the review agent believes in good faith that such patterns evidence the existence of
21	fraud or abuse. Any variance issued by the department pursuant to this section shall be limited in
22	application to those services billed directly by the practitioner. Prior to issuing a statutory
23	variance the department shall provide notice and a public hearing to ensure necessary patient and
24	health care provider protections in the process. Statutory variances shall be issued for a period not
25	to exceed one year and may be subject to such terms and conditions deemed necessary by the
26	department.
27	(b) On or before January 15th of each year, the department shall issue a report to the
28	general assembly summarizing any review agent activity as a result of a waiver granted under the
29	provisions of this section.
30	23-17.12-9. Review agency requirement for adverse determination and internal
31	appeals.
32	(a) The adverse determination and appeals process of the review agent shall conform to
33	the following:
34	(1) Notification of a prospective adverse determination by the review agent shall be
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1	mailed or otherwise communicated to the provider of record and to the patient or other
2	appropriate individual as follows:
3	(i) Within fifteen (15) business days of receipt of all the information necessary to
4	complete a review of non-urgent and/or non-emergent services;
5	(ii) Within seventy-two (72) hours of receipt of all the information necessary to complete
6	a review of urgent and/or emergent services; and
7	(iii) Prior to the expected date of service.
8	(2) Notification of a concurrent adverse determination shall be mailed or otherwise
9	communicated to the patient and to the provider of record period as follows:
10	(i) To the provider(s) prior to the end of the current certified period; and
11	(ii) To the patient within one business day of making the adverse determination.
12	(3) Notification of a retrospective adverse determination shall be mailed or otherwise
13	communicated to the patient and to the provider of record within thirty (30) business days of
14	receipt of a request for payment with all supporting documentation for the covered benefit being
15	reviewed.
16	(4) A utilization review agency shall not retrospectively deny authorization for health
17	care services provided to a covered person when an authorization has been obtained for that
18	service from the review agent unless the approval was based upon inaccurate information
19	material to the review or the health care services were not provided consistent with the provider's
20	submitted plan of care and/or any restrictions included in the prior approval granted by the review
21	agent.
22	(5) Any notice of an adverse determination shall include:
23	(i) The principal reasons for the adverse determination, to include explicit documentation
24	of the criteria not met and/or the clinical rationale utilized by the agency's clinical reviewer in
25	making the adverse determination. The criteria shall be in accordance with the agency criteria
26	noted in subsection 23-17.12-9(d) and shall be made available within the first level appeal
27	timeframe if requested unless otherwise provided as part of the adverse determination notification
28	process;
29	(ii) The procedures to initiate an appeal of the adverse determination, including the name
30	and telephone number of the person to contract with regard to an appeal;
31	(iii) The necessary contact information to complete the two-way direct communication
32	defined in subdivision 23-17.12-9(a)(7); and
33	(iv) The information noted in subdivision 23-27.12-9(a)(5)(i)(ii)(iii) for all verbal
34	notifications followed by written notification to the patient and provider(s).
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1	(6) All initial retrospective adverse determinations of a health care service that had been
2	ordered by a physician, dentist or other practitioner shall be made, documented and signed
3	consistent with the regulatory requirements which shall be developed by the department with the
4	input of review agents, providers and other affected parties.
5	(7) A level one appeal decision of an adverse determination shall not be made until an
6	appropriately qualified and licensed review physician, dentist or other practitioner has spoken to,
7	or otherwise provided for, an equivalent two-way direct communication with the patient's
8	attending physician, dentist, other practitioner, other designated or qualified professional or
9	provider responsible for treatment of the patient concerning the medical care, with the exception
10	of the following:
11	(i) When the attending provider is not reasonably available;
12	(ii) When the attending provider chooses not to speak with agency staff;
13	(iii) When the attending provider has negotiated an agreement with the review agent for
14	alternative care; and/or
15	(iv) When the attending provider requests a peer to peer communication prior to the
16	adverse determination, the review agency shall then comply with subdivision 23-17.12-9(c)(1) in
17	responding to such a request. Such requests shall be on the case specific basis unless otherwise
18	arranged for in advance by the provider.
19	(8) All initial, prospective and concurrent adverse determinations of a health care service
20	that had been ordered by a physician, dentist or other practitioner shall be made, documented and
21	signed by a licensed practitioner with the same licensure status as the ordering practitioner or a
22	licensed physician or dentist. This does not prohibit appropriately qualified review agency staff
23	from engaging in discussions with the attending provider, the attending provider's designee or
24	appropriate health care facility and office personnel regarding alternative service and treatment
25	options. Such a discussion shall not constitute an adverse determination provided though that any
26	change to the provider's original order and/or any decision for an alternative level of care must be
27	made and/or appropriately consented to by the attending provider or the provider's designee
28	responsible for treating the patient.
29	(9) The requirement that, upon written request made by or on behalf of a patient, any
30	adverse determination and/or appeal shall include the written evaluation and findings of the
31	reviewing physician, dentist or other practitioner. The review agent is required to accept a verbal
32	request made by or on behalf of a patient for any information where a provider or patient can
33	demonstrate that a timely response is urgent.
34	(b) The review agent shall conform to the following for the appeal of an adverse
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1	determination:
2	(1) The review agent shall maintain and make available a written description of the
3	appeal procedure by which either the patient or the provider of record may seek review of
4	determinations not to authorize a health care service. The process established by each review
5	agent may include a reasonable period within which an appeal must be filed to be considered and
6	that period shall not be less than sixty (60) days.
7	(2) The review agent shall notify, in writing, the patient and provider of record of its
8	decision on the appeal as soon as practical, but in no case later than fifteen (15) or twenty-one
9	(21) business days if verbal notice is given within fifteen (15) business days after receiving the
10	required documentation on the appeal.
11	(3) The review agent shall also provide for an expedited appeals process for emergency
12	or life threatening situations. Each review agent shall complete the adjudication of expedited
13	appeals within two (2) business days of the date the appeal is filed and all information necessary
14	to complete the appeal is received by the review agent.
15	(4) All first level appeals of determinations not to authorize a health care service that had
16	been ordered by a physician, dentist, or other practitioner shall be made, documented, and signed
17	by a licensed practitioner with the same licensure status as the ordering practitioner or a licensed
18	physician or a licensed dentist.
19	(5) All second level appeal decisions shall be made, signed, and documented by a
20	licensed practitioner in the same or a similar general specialty as typically manages the medical
21	condition, procedure, or treatment under discussion.
22	(6) The review agent shall maintain records of written appeals and their resolution, and
23	shall provide reports as requested by the department.
24	(c) The review agency must conform to the following requirements when making its
25	adverse determination and appeal decisions:
26	(1) The review agent must assure that the licensed practitioner or licensed physician is
27	reasonably available to review the case as required under subdivision 23-17.12-9(a)(7) and shall
28	conform to the following:
29	(i) Each agency peer reviewer shall have access to and review all necessary information
30	as requested by the agency and/or submitted by the provider(s) and/or patients;
31	(ii) Each agency shall provide accurate peer review contact information to the provider at
32	the time of service, if requested, and/or prior to such service, if requested. This contact
33	information must provide a mechanism for direct communication with the agency's peer
34	reviewer;
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1	(iii) Agency peer reviewers shall respond to the provider's request for a two-way direct
2	communication defined in subdivision 23-17.12-9(a)(7)(iv) as follows:
3	(A) For a prospective review of non-urgent and non-emergent health care services, a
4	response within one business day of the request for a peer discussion;
5	(B) For concurrent and prospective reviews of urgent and emergent health care services, a
6	response within a reasonable period of time of the request for a peer discussion; and
7	(C) For retrospective reviews, prior to the first level appeal decision.
8	(iv) The review agency will have met the requirements of a two-way direct
9	communication, when requested and/or as required prior to the first level of appeal, when it has
10	made two (2) reasonable attempts to contact the attending provider directly.
11	(v) Repeated violations of this section shall be deemed to be substantial violations
12	pursuant to § 23-17.12-14 and shall be cause for the imposition of penalties under that section.
13	(2) No reviewer at any level under this section shall be compensated or paid a bonus or
14	incentive based on making or upholding an adverse determination.
15	(3) No reviewer under this section who has been involved in prior reviews of the case
16	under appeal or who has participated in the direct care of the patient may participate as the sole
17	reviewer in reviewing a case under appeal; provided, however, that when new information has
18	been made available at the first level of appeal, then the review may be conducted by the same
19	reviewer who made the initial adverse determination.
20	(4) A review agent is only entitled to review information or data relevant to the utilization
21	review process. A review agent may not disclose or publish individual medical records or any
22	confidential medical information obtained in the performance of utilization review activities. A
23	review agent shall be considered a third party health insurer for the purposes of § 5-37.3-6(b)(6)
24	of this state and shall be required to maintain the security procedures mandated in § 5-37.3-4(c).
25	(5) Notwithstanding any other provision of law, the review agent, the department, and all
26	other parties privy to information which is the subject of this chapter shall comply with all state
27	and federal confidentiality laws, including, but not limited to, chapter 37.3 of title 5
28	(Confidentiality of Health Care Communications and Information Act) and specifically § 5-37.3-
29	4(c), which requires limitation on the distribution of information which is the subject of this
30	chapter on a "need to know" basis, and § 40.1-5-26.
31	(6) The department may, in response to a complaint that is provided in written form to the
32	review agent, review an appeal regarding any adverse determination, and may request
33	information of the review agent, provider or patient regarding the status, outcome or rationale
34	regarding the decision.
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1	(d) The requirement that each review agent shall utilize and provide upon request, by
2	Rhode Island licensed hospitals and the Rhode Island Medical Society, in either electronic or
3	paper format, written medically acceptable screening criteria and review procedures which are
4	established and periodically evaluated and updated with appropriate consultation with Rhode
5	Island licensed physicians, hospitals, including practicing physicians, and other health care
6	providers in the same specialty as would typically treat the services subject to the criteria as
7	follows:
8	(1) Utilization review agents shall consult with no fewer than five (5) Rhode Island
9	licensed physicians or other health care providers. Further, in instances where the screening
10	criteria and review procedures are applicable to inpatients and/or outpatients of hospitals, the
11	medical director of each licensed hospital in Rhode Island shall also be consulted. Utilization
12	review agents who utilize screening criteria and review procedures provided by another entity
13	may satisfy the requirements of this section if the utilization review agent demonstrates to the
14	satisfaction of the director that the entity furnishing the screening criteria and review procedures
15	has complied with the requirements of this section.
16	(2) Utilization review agents seeking initial certification shall conduct the consultation
17	for all screening and review criteria to be utilized. Utilization review agents who have been
18	certified for one year or longer shall be required to conduct the consultation on a periodic basis
19	for the utilization review agent's highest volume services subject to utilization review during the
20	prior year; services subject to the highest volume of adverse determinations during the prior year;
21	and for any additional services identified by the director.
22	(3) Utilization review agents shall not include in the consultations as required under
23	paragraph (1) of this subdivision, any physicians or other health services providers who have
24	financial relationships with the utilization review agent other than financial relationships for
25	provisions of direct patient care to utilization review agent enrollees and reasonable compensation
26	for consultation as required by paragraph (1) of this subdivision.
27	(4) All documentation regarding required consultations, including comments and/or
28	recommendations provided by the health care providers involved in the review of the screening
29	criteria, as well as the utilization review agent's action plan or comments on any
30	recommendations, shall be in writing and shall be furnished to the department on request. The
31	documentation shall also be provided on request to any licensed health care provider at a nominal
32	cost that is sufficient to cover the utilization review agent's reasonable costs of copying and
33	mailing.
34	(5) Utilization review agents may utilize non-Rhode Island licensed physicians or other
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1	health care providers to provide the consultation as required under paragraph (1) of this
2	subdivision, when the utilization review agent can demonstrate to the satisfaction of the director
3	that the related services are not currently provided in Rhode Island or that another substantial
4	reason requires such approach.
5	(6) Utilization review agents whose annualized data reported to the department
6	demonstrate that the utilization review agent will review fewer than five hundred (500) such
7	requests for authorization may request a variance from the requirements of this section.
8	23-17.12-10. External appeal requirements.
9	(a) In cases where the second level of appeal to reverse an adverse determination is
10	unsuccessful, the review agent shall provide for an external appeal by an unrelated and objective
11	appeal agency, selected by the director. The director shall promulgate rules and regulations
12	including, but not limited to, criteria for designation, operation, policy, oversight, and termination
13	of designation as an external appeal agency. The external appeal agency shall not be required to
14	be certified under this chapter for activities conducted pursuant to its designation.
15	(b) The external appeal shall have the following characteristics:
16	(1) The external appeal review and decision shall be based on the medical necessity for
17	the health care or service and the appropriateness of service delivery for which authorization has
18	been denied.
19	(2) Neutral physicians, dentists, or other practitioners in the same or similar general
20	specialty as typically manages the health care service shall be utilized to make the external appeal
21	decisions.
22	(3) Neutral physicians, dentists, or other practitioners shall be selected from lists:
23	(i) Mutually agreed upon by the provider associations, insurers, and the purchasers of
24	health services; and
25	(ii) Used during a twelve (12) month period as the source of names for neutral physician,
26	dentist, or other practitioner reviewers.
27	(4) The neutral physician, dentist, or other practitioner may confer either directly with the
28	review agent and provider, or with physicians or dentists appointed to represent them.
29	(5) Payment for the appeal fee charged by the neutral physician, dentist, or other
30	practitioner shall be shared equally between the two (2) parties to the appeal; provided, however,
31	that if the decision of the utilization review agent is overturned, the appealing party shall be
32	reimbursed by the utilization review agent for their share of the appeal fee paid under this
33	subsection.
34	(6) The decision of the external appeal agency shall be binding; however, any person who
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1	is aggrieved by a final decision of the external appeal agency is entitled to judicial review in a
2	court of competent jurisdiction.
3	23-17.12-11. Repealed.
4	23-17.12-12. Reporting requirements.
5	(a) The department shall establish reporting requirements to determine if the utilization
6	review programs are in compliance with the provisions of this chapter and applicable regulations.
7	(b) By November 14, 2014, the department shall report to the general assembly regarding
8	hospital admission practices and procedures and the effects of such practices and procedures on
9	the care and wellbeing of patients who present behavioral healthcare conditions on an emergency
10	basis. The report shall be developed with the cooperation of the department of behavioral
11	healthcare, developmental disabilities, and hospitals and of the department of children, youth, and
12	families, and shall recommend changes to state law and regulation to address any necessary and
13	appropriate revisions to the department's regulations related to utilization review based on the
14	Federal Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) and the Patient
15	Protection and Affordable Care Act, Pub. L. 111-148, and the state's regulatory interpretation of
16	parity in insurance coverage of behavioral healthcare. These recommended or adopted revisions
17	to the department's regulations shall include, but not be limited to:
18	(1) Adverse determination and internal appeals, with particular regard to the time
19	necessary to complete a review of urgent and/or emergent services for patients with behavioral
20	health needs;
21	(2) External appeal requirements;
22	(3) The process for investigating whether insurers and agents are complying with the
23	provisions of chapter 17.12 of title 23 in light of parity in insurance coverage for behavioral
24	healthcare, with particular regard to emergency admissions; and
25	(4) Enforcement of the provisions of chapter 17.12 of title 23 in light of insurance parity
26	for behavioral healthcare.
27	23-17.12-13. Lists.
28	The director shall periodically provide a list of private review agents issued certificates
29	and the renewal date for those certificates to all licensed health care facilities and any other
30	individual or organization requesting the list.
31	23-17.12-14. Penalties.
32	A person who substantially violates any provision of this chapter or any regulation
33	adopted under this chapter or who submits any false information in an application required by this
34	chapter is guilty of a misdemeanor and on conviction is subject to a penalty not exceeding five
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1	thousand dollars ($5,000).
2	23-17.12-15. Annual report.
3	The director shall issue an annual report to the governor and the general assembly
4	concerning the conduct of utilization review in the state. The report shall include a description of
5	utilization programs and the services they provide, an analysis of complaints filed against private
6	review agents by patients or providers and an evaluation of the impact of utilization review
7	programs on patient access to care.
8	23-17.12-16. Fees.
9	The proceeds of any fees, monetary penalties, and fines collected pursuant to the
10	provisions of this chapter shall be deposited as general revenues.
11	23-17.12-17. Severability.
12	If any provision of this chapter or the application of any provision to any person or
13	circumstance shall be held invalid, that invalidity shall not affect the provisions or application of
14	this chapter which can be given effect without the invalid provision or application, and to this end
15	the provisions of this chapter are declared to be severable.
16	SECTION 7. Chapter 23-17.12 of the General Laws entitled "Health Care Accessibility
17	and Quality Assurance Act" is hereby repealed in its entirety.
18	23-17.13-1. Purpose.
19	The legislature declares that:
20	(1) It is in the best interest of the public that those individuals and care entities involved
21	with the delivery of plan coverage in our state meet the standards of this chapter to insure
22	accessibility and quality for the state's patients;
23	(2) Nothing in the legislation is intended to prohibit a health care entity or contractor
24	from forming limited networks of providers; and
25	(3) It is a vital state function to establish these standards for the conduct of health plans
26	by a health care entity in Rhode Island.
27	23-17.13-2. Definitions.
28	As used in this chapter:
29	(1) "Adverse decision" means any decision by a review agent not to certify an admission,
30	service, procedure, or extension of stay. A decision by a reviewing agent to certify an admission,
31	service, or procedure in an alternative treatment setting, or to certify a modified extension of stay,
32	shall not constitute an adverse decision if the reviewing agent and the requesting provider are in
33	agreement regarding the decision.
34	(2) "Contractor" means a person/entity that:
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1	(i) Establishes, operates or maintains a network of participating providers;
2	(ii) Contracts with an insurance company, a hospital or medical or dental service plan, an
3	employer, whether under written or self insured, an employee organization, or any other entity
4	providing coverage for health care services to administer a plan; and/or
5	(iii) Conducts or arranges for utilization review activities pursuant to chapter 17.12 of this
6	title.
7	(3) "Direct service ratio" means the amount of premium dollars expended by the plan for
8	covered services provided to enrollees on a plan's fiscal year basis.
9	(4) "Director" means the director of the department of health.
10	(5) "Emergency services" has the same meaning as the meaning contained in the rules
11	and regulations promulgated pursuant to chapter 12.3 of title 42, as may be amended from time to
12	time, and includes the sudden onset of a medical or mental condition that the absence of
13	immediate medical attention could reasonably be expected to result in placing the patient's health
14	in serious jeopardy, serious impairment to bodily or mental functions, or serious dysfunction of
15	any bodily organ or part.
16	(6) "Health care entity" means a licensed insurance company, hospital, or dental or
17	medical service plan or health maintenance organization, or a contractor as described in
18	subdivision (2), that operates a health plan.
19	(7) "Health care services" includes, but is not limited to, medical, mental health,
20	substance abuse, and dental services.
21	(8) "Health plan" means a plan operated by a health care entity as described in
22	subdivision (6) that provides for the delivery of care services to persons enrolled in the plan
23	through:
24	(i) Arrangements with selected providers to furnish health care services; and/or
25	(ii) Financial incentives for persons enrolled in the plan to use the participating providers
26	and procedures provided for by the plan.
27	(9) "Provider" means a physician, hospital, pharmacy, laboratory, dentist, or other state
28	licensed or other state recognized provider of health care services or supplies, and whose services
29	are recognized pursuant to 213(d) of the Internal Revenue Code, 26 U.S.C. § 213(d), that has
30	entered into an agreement with a health care entity as described in subdivision (6) or contractor as
31	described in subdivision (2) to provide these services or supplies to a patient enrolled in a plan.
32	(10) "Provider incentive plan" means any compensation arrangement between a health
33	care entity or plan and a provider or provider group that may directly or indirectly have the effect
34	of reducing or limiting services provided with respect to an individual enrolled in a plan.
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1	(11) "Qualified health plan" means a plan that the director of the department of health
2	certified, upon application by the program, as meeting the requirements of this chapter.
3	(12) "Qualified utilization review program" means utilization review program that meets
4	the requirements of chapter 17.12 of this title.
5	(13) "Most favored rate clause" means a provision in a provider contract whereby the
6	rates or fees to be paid by a health plan are fixed, established or adjusted to be equal to or lower
7	than the rates or fees paid to the provider by any other health plan or third party payor.
8	23-17.13-3. Certification of health plans.
9	(a) Certification process.
10	(1) Certification.
11	(i) The director shall establish a process for certification of health plans meeting the
12	requirements of certification in subsection (b).
13	(ii) The director shall act upon the health plan's completed application for certification
14	within ninety (90) days of receipt of such application for certification.
15	(2) Review and recertification. To ensure compliance with subsection (b), the director
16	shall establish procedures for the periodic review and recertification of qualified health plans not
17	less than every five (5) years; provided, however, that the director may review the certification of
18	a qualified health plan at any time if there exists evidence that a qualified health plan may be in
19	violation of subsection (b).
20	(3) Cost of certification. The total cost of obtaining and maintaining certification under
21	this title and compliance with the requirements of the applicable rules and regulations are borne
22	by the entities so certified and shall be one hundred and fifty percent (150%) of the total salaries
23	paid to the certifying personnel of the department engaged in those certifications less any salary
24	reimbursements and shall be paid to the director to and for the use of the department. That
25	assessment shall be in addition to any taxes and fees otherwise payable to the state.
26	(4) Standard definitions. To help ensure a patient's ability to make informed decisions
27	regarding their health care, the director shall promulgate regulation(s) to provide for standardized
28	definitions (unless defined in existing statute) of the following terms in this subdivision,
29	provided, however, that no definition shall be construed to require a health care entity to add any
30	benefit, to increase the scope of any benefit, or to increase any benefit under any contract:
31	(i) Allowable charge;
32	(ii) Capitation;
33	(iii) Co-payments;
34	(iv) Co-insurance;
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1	(v) Credentialing;
2	(vi) Formulary;
3	(vii) Grace period;
4	(viii) Indemnity insurance;
5	(ix) In-patient care;
6	(x) Maximum lifetime cap;
7	(xi) Medical necessity;
8	(xii) Out-of-network;
9	(xiii) Out-patient;
10	(xiv) Pre-existing conditions;
11	(xv) Point of service;
12	(xvi) Risk sharing;
13	(xvii) Second opinion;
14	(xviii) Provider network;
15	(xix) Urgent care.
16	(b) Requirements for certification. The director shall establish standards and procedures
17	for the certification of qualified health plans that conduct business in this state and who have
18	demonstrated the ability to ensure that health care services will be provided in a manner to assure
19	availability and accessibility, adequate personnel and facilities, and continuity of service, and has
20	demonstrated arrangements for ongoing quality assurance programs regarding care processes and
21	outcomes; other standards shall consist of, but are not limited to, the following:
22	(1) Prospective and current enrollees in health plans must be provided information as to
23	the terms and conditions of the plan consistent with the rules and regulations promulgated under
24	chapter 12.3 of title 42 so that they can make informed decisions about accepting and utilizing the
25	health care services of the health plan. This must be standardized so that customers can compare
26	the attributes of the plans, and all information required by this paragraph shall be updated at
27	intervals determined by the director. Of those items required under this section, the director shall
28	also determine which items shall be routinely distributed to prospective and current enrollees as
29	listed in this subsection and which items may be made available upon request. The items to be
30	disclosed are:
31	(i) Coverage provisions, benefits, and any restriction or limitations on health care
32	services, including but not limited to, any exclusions as follows: by category of service, and if
33	applicable, by specific service, by technology, procedure, medication, provider or treatment
34	modality, diagnosis and condition, the latter three (3) of which shall be listed by name.
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1	(ii) Experimental treatment modalities that are subject to change with the advent of new
2	technology may be listed solely by the broad category "Experimental Treatments". The
3	information provided to consumers shall include the plan's telephone number and address where
4	enrollees may call or write for more information or to register a complaint regarding the plan or
5	coverage provision.
6	(2) Written statement of the enrollee's right to seek a second opinion, and reimbursement
7	if applicable.
8	(3) Written disclosure regarding the appeals process described in § 23-17.12-1 et seq. and
9	in the rules and regulations for the utilization review of care services, promulgated by the
10	department of health, the telephone numbers and addresses for the plan's office which handles
11	complaints as well as for the office which handles the appeals process under § 23-17.12-1 et seq.
12	and the rules and regulations for the utilization of health.
13	(4) Written statement of prospective and current enrollees' right to confidentiality of all
14	health care record and information in the possession and/or control of the plan, its employees, its
15	agents and parties with whom a contractual agreement exists to provide utilization review or who
16	in any way have access to care information. A summary statement of the measures taken by the
17	plan to ensure confidentiality of an individual's health care records shall be disclosed.
18	(5) Written disclosure of the enrollee's right to be free from discrimination by the health
19	plan and the right to refuse treatment without jeopardizing future treatment.
20	(6) Written disclosure of a plan's policy to direct enrollees to particular providers. Any
21	limitations on reimbursement should the enrollee refuse the referral must be disclosed.
22	(7) A summary of prior authorization or other review requirements including
23	preauthorization review, concurrent review, post-service review, post-payment review and any
24	procedure that may lead the patient to be denied coverage for or not be provided a particular
25	service.
26	(8) Any health plan that operates a provider incentive plan shall not enter into any
27	compensation agreement with any provider of covered services or pharmaceutical manufacturer
28	pursuant to which specific payment is made directly or indirectly to the provider as an
29	inducement or incentive to reduce or limit services, to reduce the length of stay or the use of
30	alternative treatment settings or the use of a particular medication with respect to an individual
31	patient, provided however, that capitation agreements and similar risk sharing arrangements are
32	not prohibited.
33	(9) Health plans must disclose to prospective and current enrollees the existence of
34	financial arrangements for capitated or other risk sharing arrangements that exist with providers
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1	in a manner described in paragraphs (i), (ii), and (iii):
2	(i) "This health plan utilizes capitated arrangements, with its participating providers, or
3	contains other similar risk sharing arrangements;
4	(ii) This health plan may include a capitated reimbursement arrangement or other similar
5	risk sharing arrangement, and other financial arrangements with your provider;
6	(iii) This health plan is not capitated and does not contain other risk sharing
7	arrangements."
8	(10) Written disclosure of criteria for accessing emergency health care services as well as
9	a statement of the plan's policies regarding payment for examinations to determine if emergency
10	health care services are necessary, the emergency care itself, and the necessary services following
11	emergency treatment or stabilization. The health plan must respond to the request of the treating
12	provider for post-stabilization treatment by approving or denying it as soon as possible.
13	(11) Explanation of how health plan limitations impact enrollees, including information
14	on enrollee financial responsibility for payment for co-insurance, co-payment, or other non-
15	covered, out-of-pocket, or out-of-plan services. This shall include information on deductibles and
16	benefits limitations including, but not limited to, annual limits and maximum lifetime benefits.
17	(12) The terms under which the health plan may be renewed by the plan enrollee,
18	including any reservation by the plan of any right to increase premiums.
19	(13) Summary of criteria used to authorize treatment.
20	(14) A schedule of revenues and expenses, including direct service ratios and other
21	statistical information which meets the requirements set forth below on a form prescribed by the
22	director.
23	(15) Plan costs of health care services, including but not limited to all of the following:
24	(i) Physician services;
25	(ii) Hospital services, including both inpatients and outpatient services;
26	(iii) Other professional services;
27	(iv) Pharmacy services, excluding pharmaceutical products dispensed in a physician's
28	office;
29	(v) Health education;
30	(vi) Substance abuse services and mental health services.
31	(16) Plan complaint, adverse decision, and prior authorization statistics. This statistical
32	data shall be updated annually:
33	(i) The ratio of the number of complaints received to the total number of covered persons,
34	reported by category, listed in paragraphs (b)(15)(i) – (vi);
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1	(ii) The ratio of the number of adverse decisions issued to the number of complaints
2	received, reported by category;
3	(iii) The ratio of the number of prior authorizations denied to the number of prior
4	authorizations requested, reported by category;
5	(iv) The ratio of the number of successful enrollee appeals to the total number of appeals
6	filed.
7	(17) Plans must demonstrate that:
8	(i) They have reasonable access to providers, so that all covered health care services will
9	be provided. This requirement cannot be waived and must be met in all areas where the health
10	plan has enrollees;
11	(ii) Urgent health care services, if covered, shall be available within a time frame that
12	meets standards set by the director.
13	(18) A comprehensive list of participating providers listed by office location, specialty if
14	applicable, and other information as determined by the director, updated annually.
15	(19) Plans must provide to the director, at intervals determined by the director, enrollee
16	satisfaction measures. The director is authorized to specify reasonable requirements for these
17	measures consistent with industry standards to assure an acceptable degree of statistical validity
18	and comparability of satisfaction measures over time and among plans. The director shall publish
19	periodic reports for the public providing information on health plan enrollee satisfaction.
20	(c) Issuance of certification.
21	(1) Upon receipt of an application for certification, the director shall notify and afford the
22	public an opportunity to comment upon the application.
23	(2) A health care plan will meet the requirements of certification, subsection (b) by
24	providing information required in subsection (b) to any state or federal agency in conformance
25	with any other applicable state or federal law, or in conformity with standards adopted by an
26	accrediting organization provided that the director determines that the information is substantially
27	similar to the previously mentioned requirements and is presented in a format that provides a
28	meaningful comparison between health plans.
29	(3) All health plans shall be required to establish a mechanism, under which providers,
30	including local providers participating in the plan, provide input into the plan's health care policy,
31	including technology, medications and procedures, utilization review criteria and procedures,
32	quality and credentialing criteria, and medical management procedures.
33	(4) All health plans shall be required to establish a mechanism under which local
34	individual subscribers to the plan provide input into the plan's procedures and processes regarding
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1	the delivery of health care services.
2	(5) A health plan shall not refuse to contract with or compensate for covered services an
3	otherwise eligible provider or non-participating provider solely because that provider has in good
4	faith communicated with one or more of his or her patients regarding the provisions, terms or
5	requirements of the insurer's products as they relate to the needs of that provider's patients.
6	(6)(i) All health plans shall be required to publicly notify providers within the health
7	plans' geographic service area of the opportunity to apply for credentials. This notification
8	process shall be required only when the plan contemplates adding additional providers and may
9	be specific as to geographic area and provider specialty. Any provider not selected by the health
10	plan may be placed on a waiting list.
11	(ii) This credentialing process shall begin upon acceptance of an application from a
12	provider to the plan for inclusion.
13	(iii) Each application shall be reviewed by the plan's credentialing body.
14	(iv) All health plans shall develop and maintain credentialing criteria to be utilized in
15	adding providers from the plans' network. Credentialing criteria shall be based on input from
16	providers credentialed in the plan and these standards shall be available to applicants. When
17	economic considerations are part of the decisions, the criteria must be available to applicants.
18	Any economic profiling must factor the specialty utilization and practice patterns and general
19	information comparing the applicant to his or her peers in the same specialty will be made
20	available. Any economic profiling of providers must be adjusted to recognize case mix, severity
21	of illness, age of patients and other features of a provider's practice that may account for higher
22	than or lower than expected costs. Profiles must be made available to those so profiled.
23	(7) A health plan shall not exclude a provider of covered services from participation in its
24	provider network based solely on:
25	(i) The provider's degree or license as applicable under state law; or
26	(ii) The provider of covered services lack of affiliation with, or admitting privileges at a
27	hospital, if that lack of affiliation is due solely to the provider's type of license.
28	(8) Health plans shall not discriminate against providers solely because the provider treats
29	a substantial number of patients who require expensive or uncompensated medical care.
30	(9) The applicant shall be provided with all reasons used if the application is denied.
31	(10) Plans shall not be allowed to include clauses in physician or other provider contracts
32	that allow for the plan to terminate the contract "without cause"; provided, however, cause shall
33	include lack of need due to economic considerations.
34	(11)(i) There shall be due process for non-institutional providers for all adverse decisions
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1	resulting in a change of privileges of a credentialed non-institutional provider. The details of the
2	health plan's due process shall be included in the plan's provider contracts.
3	(ii) A health plan is deemed to have met the adequate notice and hearing requirement of
4	this section with respect to a non-institutional provider if the following conditions are met (or are
5	waived voluntarily by the non-institutional provider):
6	(A) The provider shall be notified of the proposed actions and the reasons for the
7	proposed action.
8	(B) The provider shall be given the opportunity to contest the proposed action.
9	(C) The health plan has developed an internal appeals process that has reasonable time
10	limits for the resolution of an internal appeal.
11	(12) If the plan places a provider or provider group at financial risk for services not
12	provided by the provider or provider group, the plan must require that a provider or group has met
13	all appropriate standards of the department of business regulation.
14	(13) A health plan shall not include a most favored rate clause in a provider contract.
15	23-17.13-4. Penalties and enforcement.
16	(a) The director of the department of health may, in lieu of the suspension or revocation
17	of a license, levy an administrative penalty in an amount not less than five hundred dollars ($500)
18	nor more than fifty thousand dollars ($50,000), if reasonable notice, in writing, is given of the
19	intent to levy the penalty and the particular health organization has a reasonable time in which to
20	remedy the defect in its operations which gave rise to the penalty citation. The director of health
21	may augment this penalty by an amount equal to the sum that the director calculates to be the
22	damages suffered by enrollees or other members of the public.
23	(b) Any person who knowingly and willfully violates this chapter shall be guilty of a
24	misdemeanor and may be punished by a fine not to exceed five hundred dollars ($500) or by
25	imprisonment for a period not exceeding one year, or both.
26	(c)(1) If the director of health shall for any reason have cause to believe that any violation
27	of this chapter has occurred or is threatened, the director of health may give notice to the
28	particular health organization and to their representatives, or other persons who appear to be
29	involved in the suspected violation, to arrange a conference with the alleged violators or their
30	authorized representatives for the purpose of attempting to ascertain the facts relating to the
31	suspected violation, and, in the event it appears that any violation has occurred or is threatened, to
32	arrive at an adequate and effective means of correcting or preventing the violation;
33	(2) Proceedings under this subsection shall be governed by chapter 35 of title 42.
34	(d)(1) The director of health may issue an order directing a particular health organization
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1	or a representative of that health organization to cease and desist from engaging in any act or
2	practice in violation of the provisions of this chapter;
3	(2) Within thirty (30) days after service of the order to cease and desist, the respondent
4	may request a hearing on the question of whether acts or practices in violation of this chapter
5	have occurred. Those hearings shall be conducted pursuant to §§ 42-35-9 through 42-35-13, and
6	judicial review shall be available as provided by §§ 42-35-15 and 42-35-16.
7	(e) In the case of any violation of the provisions of this chapter, if the director of health
8	elects not to issue a cease and desist order, or in the event of noncompliance with a cease and
9	desist order issued pursuant to subsection (d), the director of health may institute a proceeding to
10	obtain injunctive relief, or seeking other appropriate relief, in the superior court for the county of
11	Providence.
12	23-17.13-5. Severability.
13	If any section, clause, or provision of this chapter shall be held either unconstitutional or
14	ineffective in whole or in part to the extent that it is not unconstitutional or ineffective, it shall be
15	valid and effective and no other section, clause or provision shall on account thereof be termed
16	invalid or ineffective.
17	23-17.13-6. Contracts with providers for dental services.
18	(a) No contract between a dental plan of a health care entity and a dentist for the
19	provision of services to patients may require that a dentist provide services to its subscribers at a
20	fee set by the health care entity unless said services are covered services under the applicable
21	subscriber agreement. "Covered services," as used herein, means services reimbursable under the
22	applicable subscriber agreement, subject to such contractual limitations on subscriber benefits as
23	may apply, including, for example, deductibles, waiting period or frequency limitations.
24	(b) For the purposes of this section "dental plan" shall include any policy of insurance
25	which is issued by a health care entity which provides for coverage of dental services not in
26	connection with a medical plan.
27	23-17.13-7. Contracts with providers and optometric services.
28	(a) No contract between an eye care provider and a company offering accident and
29	sickness insurance as defined in chapter 18 of title 27; a nonprofit medical service corporation as
30	defined in chapter 20 of title 27; or a health maintenance organization as defined in chapter 41 of
31	title 27; or a vision plan, may require that an eye care provider provide services or materials to its
32	subscribers at a fee set by the insurer or vision plan unless the insurer or vision plan compensates
33	the eye care provider for the provision of such services or materials to the patient. Reimbursement
34	paid by the insurer or vision plan for covered services and materials shall not provide nominal
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1	reimbursement in order to claim that services and materials are covered services.
2	(b)(1) "Services" means services and materials for which reimbursement from the vision
3	plan is provided for by an enrollee's plan contract, or for which a reimbursement would be
4	available but for the application of the enrollee's contractual limitations of deductibles,
5	copayments, or coinsurance.
6	(2) "Materials" means and includes, but is not limited to, lenses, devices containing
7	lenses, prisms, lens treatments and coatings, contact lenses, orthoptics, vision training, and
8	prosthetic devices to correct, relieve, or treat defects or abnormal conditions of the human eye or
9	its adnexa.
10	(3) "Eye care provider" means an optometrist, optician, or ophthalmologist.
11	SECTION 8. Chapter 23-17.18 of the General Laws entitled "Health Plan Modification
12	Act" is hereby repealed in its entirety.
13	23-17.18-1. Modification of health plans.
14	(a) A health plan may materially modify the terms of a participating agreement it
15	maintains with a physician only if the plan disseminates in writing by mail to the physician the
16	contents of the proposed modification and an explanation, in nontechnical terms, of the
17	modification's impact.
18	(b) The health plan shall provide the physician an opportunity to amend or terminate the
19	physician contract with the health plan within sixty (60) days of receipt of the notice of
20	modification. Any termination of a physician contract made pursuant to this section shall be
21	effective fifteen (15) calendar days from the mailing of the notice of termination in writing by
22	mail to the health plan. The termination shall not affect the method of payment or reduce the
23	amount of reimbursement to the physician by the health plan for any patient in active treatment
24	for an acute medical condition at the time the patient's physician terminates his, her, or its
25	physician contract with the health plan until the active treatment is concluded or, if earlier, one
26	year after the termination; and, with respect to the patient, during the active treatment period the
27	physician shall be subject to all the terms and conditions of the terminated physician contract,
28	including but not limited to, all reimbursement provisions which limit the patient's liability.
29	(c) Nothing in this section shall apply to accident-only, specified disease, hospital
30	indemnity, Medicare supplement, long-term care, disability income, or other limited benefit
31	health insurance policies.
32	SECTION 9. Title 27 of the General Laws entitled "Insurance" is hereby amended by
33	adding thereto the following chapter:
34	CHAPTER 27-18.8
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1	HEALTH CARE ACCESSIBILITY AND QUALITY ASSURANCE ACT
2	27-18.8-1. Purpose.
3	The legislature declares that:
4	(1) It is in the best interest of the public that those individuals and health care entities
5	involved with the delivery of health plan coverage in our state meet the standards of this chapter
6	to ensure accessibility and quality for the state's patients;
7	(2) Nothing in this legislation is intended to prohibit a health care entity from forming
8	limited networks of providers; and
9	(3) It is a vital state function to establish these standards for the conduct of health care
10	entities in Rhode Island and for public health well-being; and
11	(4) Nothing in this chapter is intended to prohibit or discourage the health insurance
12	commissioner from consulting or collaborating with the department of health, or any other state
13	or federal agency, to the extent the commissioner in his or her discretion determines such
14	consultation and or collaboration is necessary and or appropriate for the administration and
15	enforcement of this chapter.
16	27-18.8-2. Definitions.
17	As used in this chapter:
18	(1) "Adverse benefit determination" means a decision not to authorize a health care
19	service, including a denial, reduction, or termination of, or a failure to provide or make a
20	payment, in whole or in part, for a benefit. A decision by a utilization review agent to authorize a
21	health care service in an alternative setting, a modified extension of stay, or an alternative
22	treatment shall not constitute an adverse determination if the review agent and provider are in
23	agreement regarding the decision. Adverse benefit determinations include:
24	(i) “Administrative adverse benefit determinations,” meaning any adverse benefit
25	determination that does not require the use of medical judgment or clinical criteria such as a
26	determination of an individual's eligibility to participate in coverage, a determination that a
27	benefit is not a covered benefit, or any rescission of coverage; and
28	(ii) “Non-administrative adverse benefit determinations,” meaning any adverse benefit
29	determination that requires or involves the use of medical judgement or clinical criteria to
30	determine whether the service reviewed is medically necessary and/or appropriate. This includes
31	the denial of treatments determined to be experimental or investigational, and any denial of
32	coverage of a prescription drug because that drug is not on the health care entity’s formulary.
33	(2) "Appeal” or “internal appeal” means a subsequent review of an adverse benefit
34	determination upon request by a claimant to include the beneficiary or provider to reconsider all
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1	or part of the original adverse benefit determination.
2	(3) “Authorized representative” means an individual acting on behalf of the beneficiary
3	and shall include the ordering provider, any individual to whom the beneficiary has given express
4	written consent to act on his or her behalf, a person authorized by law to provide substituted
5	consent for the beneficiary and, when the beneficiary is unable to provide consent, a family
6	member of the beneficiary.
7	(4) “Beneficiary” means a policy holder subscriber, enrollee, or other individual
8	participating in a health benefit plan.
9	(5) “Benefit determination” means a decision to approve or deny a request to provide or
10	make payment for a health care service.
11	(6) “Certificate” means a certificate granted by the commissioner to a health care entity
12	meeting the requirements of this act.
13	(7) "Commissioner" means the commissioner of the office of the health insurance
14	commissioner.
15	(8) "Complaint" means an oral or written expression of dissatisfaction by a beneficiary,
16	authorized representative or provider. The appeal of an adverse benefit determination is not
17	considered a complaint.
18	(9) “Delegate” means a person or entity authorized pursuant to a delegation of authority
19	or directly or re-delegation of authority, by a health care entity or network plan to perform one or
20	more of the functions and responsibilities of a health care entity and/or network plan set forth in
21	this Act or regulations or guidance promulgated thereunder.
22	(10) "Emergency services" or “emergent services” means those resources provided in the
23	event of the sudden onset of a medical, behavioral health or other health condition that the
24	absence of immediate medical attention could reasonably be expected, by a prudent layperson, to
25	result in placing the patient's health in serious jeopardy, serious impairment to bodily or mental
26	functions, or serious dysfunction of any bodily organ or part.
27	(11) “Health benefit plan” or “health plan” means a policy, contract, certificate or
28	agreement entered into, offered or issued by a health care entity to provide, deliver, arrange for,
29	pay for or reimburse any of the costs of health care services.
30	(12) “Health care entity” means an insurance company licensed, or required to be
31	licensed, by the state of Rhode Island or other entity subject to the jurisdiction of the
32	commissioner or the jurisdiction of the department of business regulation that contracts or offers
33	to contract, or enters into an agreement to provide, deliver, arrange for, pay for or reimburse any
34	of the costs of health care services, including without limitation, a for-profit or nonprofit hospital,
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1	medical or dental service corporation or plan, a health maintenance organization, a health
2	insurance company, or any other entity providing health insurance, accident and sickness
3	insurance, health benefits or health care services.
4	(13) "Health care services” means and includes, but is not limited to, an admission,
5	diagnostic procedure, therapeutic procedure, treatment, extension of stay, the ordering and/or
6	filling of formulary or non-formulary medications, and any other medical, behavioral, dental,
7	vision care services, activities, or supplies that are covered by the beneficiary’s health benefit
8	plan.
9	(14) “Most favored rate clause" means a provision in a provider contract whereby the
10	rates or fees to be paid by a health care entity are fixed, established or adjusted to be equal to or
11	lower than the rates or fees paid to the provider by any other health care entity.
12	(15) “Network” means the group or groups of participating providers providing health
13	care services under a network plan.
14	(16) "Network Plan” means a health benefit plan or health plan that either requires a
15	beneficiary to use, or creates incentives, including financial incentives, for a beneficiary to use
16	the providers managed, owned, under contract with or employed by the health care entity.
17	(17) “Office” means the office of the health insurance commissioner.
18	(18) "Professional provider" means an individual provider or health care professional
19	licensed, accredited, or certified to perform specified health care services consistent with state
20	law and who provides these health care services and is not part of a separate facility or
21	institutional contract.
22	(19) "Provider" means a physician, hospital, professional provider, pharmacy, laboratory,
23	dental, medical or behavioral health provider, or other state licensed or other state recognized
24	provider of health care or behavioral health services or supplies.
25	(20) “Tiered network” means a network that identifies and groups some or all types of
26	providers into specific groups to which different provider reimbursement, beneficiary cost-
27	sharing or provider access requirements, or any combination thereof, apply for the same services.
28	27-18.8-3. Certification of network plans.
29	(a) Certification and Recertification Process.
30	(1) A health care entity operating a network plan shall not enroll consumers into its plan
31	unless the office has certified the network plan meeting the requirements herein.
32	(2) The commissioner shall act upon the health care entities’ completed applications for
33	certification of network plans, as determined by the commissioner, within ninety (90) calendar
34	days of receipt of such applications for certification.
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1	(3) To ensure compliance, the commissioner shall establish procedures for the periodic
2	review and recertification of network plans at least every three (3) years provided, however, that
3	the commissioner may review the certification a network plan at any time and/or may require
4	periodic compliance attestation from a health care entity if, in the commissioner’s discretion, he
5	or she deems it appropriate to do so.
6	(4) Cost of certification. The total cost of obtaining and maintaining a certificate under
7	this title and in compliance with the requirements of the applicable rules and regulations shall be
8	borne by the applicant and shall include one hundred and fifty percent (150%) of the total salaries
9	paid to the personnel and one hundred percent (100%) of the cost of any outside experts or
10	consultants engaged by the commissioner to determine compliance. These monies shall be paid to
11	the commissioner to and for the use of the office and shall be in addition to any taxes and fees
12	otherwise payable to the state. (b) General requirements. The commissioner shall establish
13	standards and procedures for the certification of network plans that have demonstrated the ability
14	to ensure that health care services will be provided in a manner to assure availability and
15	accessibility, adequate personnel and facilities, and continuity of service, and have demonstrated
16	arrangements for ongoing quality assurance programs regarding care processes and outcomes.
17	These standards shall consist of, but are not limited to, the following:
18	(1) As to each network plan, a health care entity must demonstrate it has reasonable
19	access to providers, so that all covered health care services will be provided. This requirement
20	cannot be waived and must be met in all areas where the network plan has beneficiaries;
21	(2) As to each network plan, a health care entity must demonstrate that covered health
22	care services shall be available within a time frame that meets standards established by the
23	commissioner;
24	(3) As to each network plan, a health care entity must demonstrate it has a mechanism for
25	beneficiaries and providers to appeal and grieve decisions and actions of the network plan and/or
26	health care entity, including decisions or actions made by a delegate of the health care entity in
27	relation to the network plan;
28	(4) As to each network plan, a health care entity must maintain a comprehensive list of
29	participating providers that meets the requirements herein and provides additional information
30	relevant to network adequacy and access as determined by the commissioner;
31	(5) In the event of any systemic changes in the health care entity, network plan or any
32	relevant delegate’s certification information on file with the office, the health care entity shall
33	submit notice and explanation of this change for approval by the commissioner at least thirty (30)
34	calendar days prior to implementation of any such change;
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1	(6) As to each network plan, a health care entity shall maintain a complaint resolution
2	process acceptable to the office, whereby beneficiaries, their authorized representatives, their
3	physicians, or other health care providers may seek resolution of complaints and other matters of
4	which the health care entity has received oral or written notice;
5	(7) As to each network plan, a health care entity shall be required to establish a
6	mechanism, under which providers, including local providers participating in the network plans,
7	provide input into the plan's health care policy, including technology, medications and
8	procedures, utilization review criteria and procedures, quality and credentialing criteria, and
9	medical management procedures;
10	(8) As to each network plan, a health care entity shall be required to establish a
11	mechanism under which beneficiaries provide input into the health care entity's procedures and
12	processes regarding the delivery of health care services; and
13	(9) As to each network plan, a health care entity must maintain a process, policies and
14	procedures for the modification of formularies to include notices to beneficiaries and providers
15	when formularies change in a manner acceptable to the commissioner and in accordance with all
16	state and federal laws.
17	(c) Network requirements. For each network plan, health care entities must ensure the
18	following requirements are met:
19	(1) Maintain access to professional, facility and other providers sufficient to provide
20	coverage in a timely manner, of the benefits covered in the network plan and in a manner that
21	does not impose obstacles that unreasonably affect access to care;
22	(2) Establish a process acceptable to the commissioner to monitor the status of each
23	network plan’s network adequacy not less frequently than quarterly;
24	(3) If access to in-network providers for any covered benefit is not sufficient to provide
25	necessary care in a timely manner, the health care entity must ensure that the beneficiary access
26	to out-of-network covered benefits is subject to financial obligations and treatment limitations no
27	more costly or restrictive to the beneficiary than the beneficiary’s access to an in-network
28	provider for the covered benefit. Unless otherwise approved by the commissioner, scenarios that
29	trigger this provision shall include situations where a beneficiary (a) obtains services at an in-
30	network facility from an out-of-network or non-participating provider (e.g., an anesthesiologist, a
31	radiologist, a pathologist) either unknowingly or in a manner where the beneficiary receives
32	insufficient advance notice to reasonably alter his or her course of care; and (b) obtains services
33	from an in-network or participating provider whose practice area routinely requires his or her
34	services be provided in a medical facility (e.g., an obstetrician) and the provider does not have
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1	admitting privileges at any such in-network medical facility;
2	(4) Establish a process by which the health care entity will ensure that, if a provider
3	withdraws or is terminated from the network plan’s provider network during the plan year, the
4	health care entity will ensure that a beneficiary in active treatment for an acute condition with the
5	provider may continue treatment with the provider and be subject to financial obligations and
6	treatment limitations no more costly or restrictive to the beneficiary than prior to withdrawal or
7	termination until active treatment is concluded, or, if earlier, one year after the date of withdrawal
8	or termination; and
9	(5) Establish and maintain a transition of care policy and process when a network has
10	been narrowed, tiered, and/or providers (facilities and professional) have terminated contracts
11	with the health care entity for that network plan;
12	(6) Establish a mechanism to provide the beneficiaries and consumers with up to date
13	information on providers, in a form acceptable to the commissioner, to include:
14	(i) Location by city, town, county;
15	(ii) Specialty practice areas;
16	(iii) Affiliations/Admission Privileges with facilities, including whether those facilities
17	are in-network facilities;
18	(iv) Whether the provider is accepting new patients; and
19	(v) Information of potential financial liability due to network plan differentials as well as
20	out-of-network financial liability to include tiered networks.
21	(d) Contracting and credentialing requirements.
22	(1) A health care entity shall not refuse to contract with or compensate for covered
23	services an otherwise eligible provider or non-participating provider solely because that provider
24	has, in good faith, communicated with one or more of their patients regarding the provisions,
25	terms or requirements of the health care entity's products as they relate to the needs of that
26	provider's patients.
27	(2) The health care entity or network plan provider contracting and credentialing process
28	shall include the following:
29	(i) This credentialing process shall begin upon acceptance of an application from a
30	provider to the health care entity or network plan for inclusion;
31	(ii) Each application shall be reviewed by the health care entity's or network plan’s
32	credentialing body; and
33	(iii) All health care entities or network plans shall develop and maintain credentialing
34	criteria to be utilized in adding to provider networks. Credentialing criteria shall be based on
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1	input from providers credentialed in the health care entity or network plan and these standards
2	shall be available to applicants. When economic considerations are part of the decisions, the
3	criteria must be available to applicants. Any economic profiling must factor the specialty,
4	utilization and practice patterns and general information comparing the applicant to their peers in
5	the same specialty will be made available. Any economic profiling of providers must be adjusted
6	to recognize case mix, severity of illness, age of patients and other features of a provider's
7	practice that may account for higher than or lower than expected costs. Profiles must be made
8	available to those so profiled. The credentialing process shall not impede a beneficiary’s ability to
9	access services from a provider in a manner maintaining continuity and quality of care.
10	(3) A health care entity or network plan shall not exclude a professional provider of
11	covered services from participation in its provider network based solely on:
12	(i) The professional provider's degree or license as applicable under state law; or
13	(ii) The professional provider of covered services lack of affiliation with, or admitting
14	privileges at a hospital, if that lack of affiliation is due solely to the professional provider's type of
15	license.
16	(4) As to any network plan, health care entities shall not discriminate against providers
17	solely because the provider treats a substantial number of patients who require expensive or
18	uncompensated medical care.
19	(5) The applicant shall be provided with all reasons used if the application is denied.
20	(6) Health care entities or network plans shall not be allowed to include clauses in
21	physician or other provider contracts that allow for the health care entity or network plan to
22	terminate the contract "without cause"; provided, however, cause shall include lack of need due to
23	economic considerations.
24	(7) There shall be due process for professional providers for all adverse decisions
25	resulting in a change of privileges or contractual language of a credentialed professional provider
26	affecting patient care and/or provider reimbursement.
27	(i) The details of the health care entity or network plan’s due process shall be included in
28	the professional provider contracts.
29	(ii) A health care entity or network plan is deemed to have met the adequate notice and
30	hearing requirement of this section with respect to a professional provider if the following
31	conditions are met (or are waived voluntarily by the professional provider):
32	(A) The professional provider shall be notified of the proposed actions and the reasons
33	for the proposed action;
34	(B) The professional provider shall be given the opportunity to contest the proposed
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1	action; and
2	(C) The health care entity has developed an appeals process that has reasonable time
3	limits for the resolution of the appeal.
4	(8) A health care entity or network plan shall not include a most favored rate clause in a
5	provider contract.
6	(9) A health entity or network plan may materially modify the terms of a participating
7	agreement it maintains with a professional provider only if it disseminates, in writing, by mail to
8	the professional provider, the contents of the proposed modification and an explanation, in non-
9	technical terms, of the modification's impact.
10	(10) The health care entity or network plan shall provide the professional provider an
11	opportunity to amend or terminate the professional provider contract within sixty (60) calendar
12	days of receipt of the notice of modification. Any termination of a professional provider contract
13	made pursuant to this section shall be effective fifteen (15) calendar days from the mailing of the
14	notice of termination, in writing, by mail to the health care entity or network plan. The
15	termination shall not affect the method of payment or reduce the amount of reimbursement to the
16	professional provider by the health care entity or network plan for any beneficiary in active
17	treatment for an acute medical condition at the time the beneficiary's professional provider
18	terminates their professional provider contract with the health care entity or network plan until the
19	active treatment is concluded or, if earlier, one year after the termination; and, with respect to the
20	beneficiary, during the active treatment period the professional provider shall be subject to all the
21	terms and conditions of the terminated professional provider contract, including, but not limited
22	to, all reimbursement provisions which limit the beneficiary’s liability.
23	27-18.8-4. Contracts with providers for dental services.
24	(a) No contract between a dental plan of a health care entity and a dentist for the
25	provision of services to beneficiaries may require that a dentist provide services to its patients at a
26	fee set by the health care entity unless said services are covered services under the applicable
27	subscriber agreement. "Covered services," as used herein, means services reimbursable under the
28	applicable beneficiary agreement, subject to such contractual limitations on beneficiary benefits
29	as may apply, including, for example, deductibles, waiting period or frequency limitations.
30	27-18.8-5. Contracts with providers and optometric services.
31	(a) No contract between an eye care provider and a health care entity or vision plan may
32	require that an eye care provider provide services or materials to its beneficiaries at a fee set by
33	the insurer or vision plan, unless the insurer or vision plan compensates the eye care provider for
34	the provision of such services or materials to the beneficiary. Reimbursement paid by the insurer
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1	or vision plan for covered services and materials shall not provide nominal reimbursement in
2	order to claim that services and materials are covered services.
3	(b)(1) "Services" means services and materials for which reimbursement from the vision
4	plan is provided for by a beneficiary's plan contract, or for which a reimbursement would be
5	available but for the application of the beneficiary's contractual limitations of deductibles,
6	copayments, or coinsurance.
7	(2) "Materials" means and includes, but is not limited to, lenses, devices containing
8	lenses, prisms, lens treatments and coatings, contact lenses, orthoptics, vision training, and
9	prosthetic devices to correct, relieve, or treat defects or abnormal conditions of the human eye or
10	its adnexa.
11	(3) "Eye care provider" means an optometrist, optician, or ophthalmologist.
12	27-18.8-6. Reporting requirements.
13	The office shall establish reporting requirements to determine if health care entities
14	and/or network plans are in compliance with the provisions of this chapter and applicable
15	regulations as well as in compliance with applicable federal law.
16	28-18.8-7. Rules and regulations.
17	The health insurance commissioner may promulgate such rules and regulations as are
18	necessary and proper to effectuate the purpose and for the efficient administration and
19	enforcement of this chapter.
20	27-18.8-8. Denial, suspension, or revocation of certificate.
21	Adopted pursuant to this chapter;
22	(a) The office may deny a certificate or certification upon review of the application if,
23	upon review of the application, it finds that the applicant proposing to establish a network plan
24	does not meet the standards required by this chapter or by any regulations promulgated pursuant
25	to this chapter.
26	(b) The office may revoke a certificate or certification and/or impose monetary penalties
27	not less than $100 and not to exceed fifty thousand dollars ($50,000) per violation and/or impose
28	an order requiring a monetary restitution or disgorgement payment in an amount determined by
29	the commissioner to reasonably reflect the amount of damages caused or monies improperly
30	obtained in any case in which:
31	(1) The network plan and or health care entity fails to comply substantially with the
32	requirements of this chapter or of regulations;
33	(2) The network plan and or health care entity fails to comply with the criteria used by it
34	in its application for a certificate or certification; or
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1	(3) The network plan and/or health care entity refuses to permit or fails to reasonably
2	cooperate with an examination by the commissioner to determine compliance with the
3	requirements of this chapter and regulations promulgated pursuant to the authority granted to the
4	commissioner in this chapter. These determinations may involve consideration of any written
5	grievances filed with the office against the network plan or health care entity by patients or
6	providers.
7	(c) Any applicant or certificate or certification holder aggrieved by an order or a decision
8	of the commissioner made under this chapter without a hearing may, within thirty (30) days after
9	notice of the order or decision, make a written request to the office for a hearing on the order or
10	decision pursuant to 42-35-15.
11	(d) The procedure governing hearings authorized by this section shall be in accordance
12	with 42-35-9 – 42-35-13 as stipulated in 42-35-14(a). A full and complete record shall be kept of
13	all proceedings, and all testimony shall be recorded but need not be transcribed unless the
14	decision is appealed pursuant to 42-35-15. A copy or copies of the transcript may be obtained by
15	any interested party upon payment of the cost of preparing the copy or copies. Witnesses may be
16	subpoenaed by either party.
17	27-18.8-9. Criminal penalties.
18	(a) A person, firm, corporation, association or other legal entity who knowingly and
19	willfully violates this chapter shall be guilty of a misdemeanor and may be punished by a fine not
20	to exceed fifty thousand dollars ($50,000) or by imprisonment for a period of not more than one
21	year, or both.
22	(b) The statute of limitations for any criminal violation of the provisions of this chapter
23	shall be ten (10) years.
24	27-18.8-10. Administrative penalties.
25	(a) Whenever the commissioner shall have cause to believe that a violation of this chapter
26	has occurred by a health care entity or network plan or any person or entity conducting any
27	activities requiring certification under this chapter, the commissioner may, in accordance with the
28	requirements of the Administrative Procedures Act, chapter 35 of title 42:
29	(1) Revoke or suspend a license issued under this chapter;
30	(2) Levy an administrative penalty in an amount not less than one hundred dollars ($100)
31	nor more than fifty thousand dollars ($50,000) per violation. In the case of a continuing violation,
32	each day’s continuance of the violation is deemed to be a separate and distinct offense;
33	(3) Order the violator to cease such actions;
34	(4) Require the health care entity and/or network plan or any person or entity conducting
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1	any activities requiring certification under this chapter to take such actions as are necessary to
2	comply with this chapter or the regulations promulgated hereunder; or
3	(5) Any combination of the above penalties.
4	(b) Any monetary penalties assessed pursuant to this section shall be as general revenues.
5	(c) Nothing in this chapter shall limit the authority of the commissioner to seek any other
6	penalties or remedies available under applicable law or to conduct examinations, issue orders, and
7	recover the costs and expenses of state personnel or outside counsel or outside consultants or
8	experts pursuant to other provisions of the general laws.
9	27-18.8-11. Injunctions. Cease and desist.
10	In addition to the penalties and other enforcement provisions available to the
11	commissioner pursuant to this chapter or any other applicable provision of law or regulation:
12	(a) If any person or entity violates this chapter or any rule implementing this chapter, the
13	commissioner may seek an injunction in a court of competent jurisdiction in this state and may
14	apply for temporary and permanent orders that the commissioner determines necessary to restrain
15	the person from further committing the violation.
16	(b) If the commissioner has reason to believe that any person or entity is violating or has
17	violated any provision of this chapter, any rule or order adopted by the commissioner, or any
18	written agreement entered into with the commissioner:
19	(i) The office may issue its order to that person, firm, corporation or association
20	commanding them to appear before the office at a hearing to be held no sooner than ten (10) days
21	nor later than twenty (20) days after issuance of that order to show cause why the office should
22	not issue an order to that person to cease and desist from the violation of the provisions of this
23	chapter.
24	(ii) The order to show cause may be served on any person, firm, corporation or
25	association named in the order in the same manner that summons in a civil action may be served,
26	or by mailing a copy of the order, certified mail, return receipt requested, to that person or entity
27	at any address at which he or she has done business or at which he or she lives. If, upon that
28	hearing, the office is satisfied that the person or entity is in fact violating any provision of this
29	chapter, then the office may order that person or entity, in writing, to cease and desist from that
30	violation.
31	(iii) All hearings shall be governed in accordance with chapter 35 of title 42, the
32	"Administrative Procedures Act." If that person or entity fails to comply with an order of the
33	commissioner after being afforded a hearing, the superior court in Providence County has
34	jurisdiction upon complaint of the commissioner to restrain and enjoin that person from violating
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1	this chapter.
2	(c) If the commissioner has reason to believe that any person or entity is violating or has
3	violated any provision of this chapter, any rule or order adopted by the commissioner, or any
4	written agreement entered into with the commissioner and the commissioner finds that such an
5	action presents an immediate danger to the public and requires an immediate final order, he or she
6	may issue an emergency cease and desist order reciting with particularity the facts underlying
7	such findings. The emergency cease and desist order is effective immediately upon service of a
8	copy of the order on the respondent and remains effective for ninety (90) days. If the office
9	begins non-emergency cease and desist proceedings under subsections (a) or (b), the emergency
10	cease and desist order remains effective, absent an order by a court of competent jurisdiction
11	pursuant to section 42-35-1 et seq. In the event of a willful violation of this chapter, the superior
12	court may award statutory damages in addition to actual damages in an additional amount up to
13	three (3) times the actual damage award.
14	27-18.8-12. Severability.
15	If any section, clause, or provision of this chapter shall be held either unconstitutional or
16	ineffective in whole or in part, to the extent that it is not unconstitutional or ineffective, it
17	shall be valid and effective and no other section, clause or provision shall on account thereof be
18	termed invalid or ineffective.
19	SECTION 10. Title 27 of the General Laws entitled "Insurance" is hereby amended by
20	adding thereto the following chapter:
21	CHAPTER 27-18.9
22	BENEFIT DETERMINATION AND UTILIZATION REVIEW ACT
23	27-18.9-1. Purpose of chapter.
24	(a) The purpose of this chapter is to:
25	(1) Promote the delivery of quality health care in a cost effective manner;
26	(2) Foster greater coordination between health care providers, patients, health care
27	entities, health benefit plans and utilization review entities to ensure public health well-being;
28	(3) Protect beneficiaries, businesses, and providers by ensuring that review agents are
29	qualified to perform review activities and to make informed decisions on the medical necessity
30	and appropriateness of medical care;
31	(4) Ensure that review agents maintain the confidentiality of medical records in
32	accordance with applicable state and federal laws; and
33	(5) Interface and maintain compliance with federal benefit determination and adverse
34	benefit determination requirements.
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1	(b) Nothing in this chapter is intended to prohibit or discourage the health insurance
2	commissioner from consulting or collaborating with the department of health, or any other state
3	or federal agency, to the extent the commissioner in his or her discretion determines such
4	consultation and or collaboration is necessary and or appropriate for the administration and
5	enforcement of this chapter.
6	27-18.9-2. Definitions.
7	As used in this chapter, the following terms are defined as follows:
8	(1) "Adverse benefit determination" means a decision not to authorize a health care
9	service, including a denial, reduction, or termination of, or a failure to provide or make a
10	payment, in whole or in part, for a benefit. A decision by a utilization review agent to authorize a
11	health care service in an alternative setting, a modified extension of stay, or an alternative
12	treatment shall not constitute an adverse determination if the review agent and provider are
13	in agreement regarding the decision. Adverse benefit determinations include:
14	(i) “Administrative adverse benefit determinations,” meaning any adverse benefit
15	determination that does not require the use of medical judgment or clinical criteria such as a
16	determination of an individual's eligibility to participate in coverage, a determination that a
17	benefit is not a covered benefit, or any rescission of coverage; and
18	(ii) “Non-administrative adverse benefit determinations,” meaning any adverse benefit
19	determination that requires or involves the use of medical judgement or clinical criteria to
20	determine whether the service being reviewed is medically necessary and/or appropriate. This
21	includes the denial of treatments determined to be experimental or investigational, and any denial
22	of coverage of a prescription drug because that drug is not on the health care entity’s formulary.
23	(2) "Appeal” or “internal appeal” means a subsequent review of an adverse benefit
24	determination upon request by a claimant to include the beneficiary or provider to reconsider all
25	or part of the original adverse benefit determination.
26	(3) "Authorization" means a review by a review agent, performed according to this Act,
27	concluding that the allocation of health care services ordered by a provider, given or proposed to
28	be given to a beneficiary, was approved or authorized.
29	(4) “Authorized representative” means an individual acting on behalf of the beneficiary
30	and shall include the ordering provider, any individual to whom the beneficiary has given express
31	written consent to act on his or her behalf, a person authorized by law to provide substituted
32	consent for the beneficiary and, when the beneficiary is unable to provide consent, a family
33	member of the beneficiary.
34	(5) “Beneficiary” means a policy holder subscriber, enrollee or other individual
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1	participating in a health benefit plan.
2	(6) “Benefit determination” means a decision to approve or deny a request to provide or
3	make payment for a health care service or treatment.
4	(7) "Certificate" means a certificate granted by the commissioner to a review agent
5	meeting the requirements of this act.
6	(8) “Claim” means a request for plan benefit(s) made by a claimant in accordance with
7	the health care entity’s reasonable procedures for filing benefit claims. This shall include pre-
8	service, concurrent and post-service claims.
9	(9) “Claimant” means a health care entity participant, beneficiary, and/or authorized
10	representative who makes a request for plan benefit(s).
11	(10) "Commissioner" means the health insurance commissioner.
12	(11) "Complaint" means an oral or written expression of dissatisfaction by a beneficiary,
13	authorized representative, or a provider. The appeal of an adverse benefit determination is not
14	considered a complaint.
15	(12) "Concurrent assessment" means an assessment of health care services conducted
16	during a beneficiary's hospital stay, course of treatment or services over a period of time or for
17	the number of treatments. If the medical problem is ongoing, this assessment may include the
18	review of services after they have been rendered and billed.
19	(13) “Concurrent claim” means a request for a plan benefit(s) by a claimant that is for an
20	ongoing course of treatment or services over a period of time or for the number of treatments.
21	(14) “Delegate” means a person or entity authorized pursuant to a delegation of authority
22	or directly or re-delegation of authority, by a health care entity or network plan to perform one or
23	more of the functions and responsibilities of a health care entity and/or network plan set forth in
24	this Act or regulations or guidance promulgated thereunder.
25	(15) "Emergency services" or “emergent services” means those resources provided in the
26	event of the sudden onset of a medical, behavioral health or other health condition that the
27	absence of immediate medical attention could reasonably be expected, by a prudent layperson, to
28	result in placing the patient's health in serious jeopardy, serious impairment to bodily or mental
29	functions, or serious dysfunction of any bodily organ or part.
30	(16) “External review” means a review of a non-administrative adverse benefit
31	determination (including final internal adverse benefit determination) conducted pursuant to an
32	applicable external review process performed by an Independent Review Organization
33	(17) “Final internal adverse benefit determination” means an adverse benefit
34	determination that has been upheld by a plan or issuer at the completion of the internal appeals
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1	process or when the internal appeals process has been deemed exhausted as defined in section 27-
2	18.9-7(b)(1) of this act.
3	(18) “External review decision” means a determination by an independent review
4	organization at the conclusion of the external review.
5	(19) “Health benefit plan” or “health plan” means a policy, contract, certificate or
6	agreement entered into, offered or issued by a health care entity to provide, deliver, arrange for,
7	pay for or reimburse any of the costs of health care services.
8	(20) “Health care entity” means an insurance company licensed, or required to be
9	licensed, by the state of Rhode Island or other entity subject to the jurisdiction of the
10	commissioner or the jurisdiction of the department of business regulation pursuant to R.I.G.L 42-
11	62, that contracts or offers to contract, or enters into an agreement to provide, deliver, arrange for,
12	pay for or reimburse any of the costs of health care services, including without limitation, a for-
13	profit or nonprofit hospital, medical or dental service corporation or plan , a health maintenance
14	organization, a health insurance company, or any other entity providing a plan of health
15	insurance, accident and sickness insurance, health benefits or health care services.
16	(21) "Health care services” means and includes, but is not limited to, an admission,
17	diagnostic procedure, therapeutic procedure, treatment, extension of stay, the ordering and/or
18	filling of formulary or non-formulary medications, and any other medical, behavioral, dental,
19	vision care services, activities, or supplies that are covered by the beneficiary’s health benefit
20	plan.
21	(22) “Independent review organization” or “IRO” means an entity that conducts
22	independent external reviews of adverse benefit determinations or final internal adverse benefit
23	determinations.
24	(23) “Network” means the group or groups of participating providers providing health
25	care services under a network plan.
26	(24) "Network plan” means a health benefit plan or health plan that either requires a
27	beneficiary to use, or creates incentives, including financial incentives, for a beneficiary to use
28	the providers managed, owned, under contract with or employed by the health care entity.
29	(25) "Office" means the office of the health insurance commissioner.
30	(26) "Professional provider" means an individual provider or health care professional
31	licensed, accredited, or certified to perform specified health care services consistent with state
32	law and who provides health care services and is not part of a separate facility or institutional
33	contract.
34	(27) "Prospective assessment" and/or “pre-service assessment” mean an assessment of
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1	health care services prior to services being rendered.
2	(28) “Pre-service claim” means the request for a plan benefit(s) by a claimant prior to a
3	services being rendered and is not considered a concurrent claim.
4	(29) "Provider" means a physician, hospital, professional provider, pharmacy, laboratory,
5	dental, medical or behavioral health provider or other state licensed or other state recognized
6	provider of health care or behavioral health services or supplies.
7	(30) "Retrospective assessment” and/or “post service assessment” means an assessment
8	of health care services that have been rendered. This shall not include reviews conducted when
9	the review agency has been obtaining ongoing information.
10	(31) “Retrospective claim” or “post-service claim” means any claim for a health plan
11	benefit that is not a pre-service or concurrent claim.
12	(32) "Review agent" means a person or health care entity performing benefit
13	determination reviews that is either employed by, affiliated with, under contract with, or acting on
14	behalf of a health care entity.
15	(33) "Same or similar specialty" means a practitioner who has the appropriate training
16	and experience that is the same or similar as the attending provider in addition to experience in
17	treating the same problems to include any potential complications as those under review.
18	(34) "Therapeutic interchange" means the interchange or substitution of a drug with a
19	dissimilar chemical structure within the same therapeutic or pharmacological class that can be
20	expected to have similar outcomes and similar adverse reaction profiles when given in equivalent
21	doses, in accordance with protocols approved by the president of the medical staff or medical
22	director and the director of pharmacy.
23	(35) “Tiered network” means a network that identifies and groups some or all types of
24	providers into specific groups to which different provider reimbursement, beneficiary cost-
25	sharing or provider access requirements, or any combination thereof, apply for the same services.
26	(36) "Urgent health care services” includes those resources necessary to treat a
27	symptomatic medical, mental health, substance use or other health care condition that a prudent
28	layperson, acting reasonably would believe necessitates treatment within a twenty-four (24) hour
29	period of the onset of such a condition in order that the patient's health status not decline as a
30	consequence. This does not include those conditions considered to be emergent health care
31	services as defined in in this section.
32	(37) "Utilization review" means the prospective, concurrent, or retrospective assessment
33	of the medical necessity and/or appropriateness of the allocation of health care services of a
34	provider, given or proposed to be given, to a beneficiary. Utilization review does not include:
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1	(i) The therapeutic interchange of drugs or devices by a pharmacy operating as part of a
2	licensed inpatient health care facility; or
3	(ii) The assessment by a pharmacist licensed pursuant to the provisions of chapter 19 of
4	title 5, and practicing in a pharmacy operating as part of a licensed inpatient health care facility,
5	in the interpretation, evaluation and implementation of medical orders, including assessments
6	and/or comparisons involving formularies and medical orders.
7	(38) "Utilization review plan" means a description of the standards governing utilization
8	review activities performed by a review agent.
9	27-18.9-3. Certification and recertification of review agents.
10	(a) A review agent shall not conduct benefit determination reviews in the state unless the
11	office has granted the review agent a certificate.
12	(b) Individuals shall not be required to hold a separate review agent certification under
13	this chapter when acting as either an employee of, an affiliate of, a contractor for, or otherwise
14	acting on behalf of a certified review agent.
15	(c) The commissioner shall establish a process for the certification of review agents
16	meeting the requirements of certification.
17	(d) The commissioner shall establish procedures for the periodic review and
18	recertification of review agents at least every three (3) years.
19	(e) A certificate issued under this chapter is not transferable, and the transfer of fifty
20	percent (50%) or more of the ownership of a review agent shall be deemed a transfer.
21	(f) The office shall issue a review agent certificate to an applicant that has met the
22	minimum standards defined in this chapter, and regulations promulgated in accordance with it,
23	including the payment of any fees as required, and other applicable regulations of the office.
24	(g) In the event of any systemic changes in the review agent certification information on
25	file with the office, the review agent shall submit notice and explanation of this change for
26	approval by the commissioner at least thirty (30) calendar days prior to implementation of any
27	such change.
28	(h) The total cost of obtaining and maintaining a review agent certification under
29	this title and in compliance with the requirements of the applicable rules and regulations shall
30	be borne by the applicant and shall include one hundred and fifty percent (150%) of the total
31	salaries paid to the personnel and one hundred percent (100%) of the cost of any outside experts
32	or consultants engaged by the commissioner to determine compliance. These monies shall be paid
33	to the commissioner to and for the use of the office and shall be in addition to any taxes and fees
34	otherwise payable to the state.
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1	(i) The commissioner is authorized to establish any fees for initial application, renewal
2	applications, and any other administrative actions deemed necessary by the commissioner to
3	implement this chapter. Any fees for a review agent application for certification and/or other fees
4	required under this chapter determined by the commissioner and sufficient to cover the cost of the
5	review agent certification program.
6	(j) Notwithstanding any other provision of law, the review agent, the office, and all other
7	parties privy to information which is the subject of this chapter shall comply with all state and
8	federal confidentiality laws, including, but not limited to, chapter 37.3 of title 5 (confidentiality of
9	health care communications and information act) and specifically section 5-37.3-4(c), which
10	requires limitation on the distribution of information which is the subject of this chapter on a
11	"need to know" basis, and section 40.1-5-26.
12	(k) The office may, in response to a complaint or inquiry, review a benefit determination
13	or appeal and may request information of the review agent, provider or beneficiary regarding the
14	status, outcome or rationale regarding any decision. The review agent shall promptly respond to
15	any such requests by the office.
16	(l) The office shall adopt regulations necessary to implement the provisions of this
17	chapter.
18	27-18.9-4. Application requirements.
19	An application for review agent certification or recertification shall include, but is not
20	limited to, documentation to evidence the following:
21	(a) Administrative and Non-Administrative Benefit Determinations:
22	(1) That the health care entity or its review agent provide beneficiaries and providers with
23	a summary of its benefit determination review programs and adverse benefit determination
24	criteria in a manner acceptable to the commissioner that includes a summary of the standards,
25	procedures and methods to be used in evaluating proposed, concurrent or delivered health care
26	services;
27	(2) The circumstances, if any, under which review agent may be delegated to and
28	evidence that the delegated review agent is a certified review agent pursuant to the requirements
29	of this act;
30	(3) A complaint resolution process acceptable to the commissioner, whereby
31	beneficiaries or other health care providers may seek resolution of complaints and other matters
32	of which the review agent has received notice;
33	(4) Policies and procedures to ensure that all applicable state and federal laws to protect
34	the confidentiality of individual medical records are followed;
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1	(5) Requirements that no employee of, or other individual rendering an adverse benefit
2	determination or appeal decision may receive any financial or other incentives based upon the
3	number of denials of certification made by that employee or individual;
4	(6) Evidence that the review agent has not entered into a compensation agreement or
5	contract with its employees or agents whereby the compensation of its employees or its agents is
6	based, directly or indirectly, upon a reduction of services or the charges for those services, the
7	reduction of length of stay, or use of alternative treatment settings;
8	(7) An adverse benefit determination and internal appeals process consistent with chapter
9	27-18.9 and acceptable to the office, whereby beneficiaries, their physicians, or other health care
10	service providers may seek prompt reconsideration or appeal of adverse benefit determinations by
11	the review agent according to all state and federal requirements; and
12	(8) That the health care entity or its review agent has a mechanism to provide the
13	beneficiary or claimant with a description of its claims procedures and any procedures for
14	obtaining approvals as a prerequisite for obtaining a benefit or for obtaining coverage for such
15	benefit. This description should at a minimum be placed in the summary of benefits document
16	and available on the review agent’s or the relevant health care entity’s website and upon request
17	from the claimant, his/her authorized representative and ordering providers.
18	(b) Non-administrative benefit determinations general requirements:
19	(1) Type and qualifications of personnel (employed or under contract) authorized to
20	perform utilization review, including a requirement that only a provider with the same license
21	status as the ordering professional provider or a licensed physician or dentist, is permitted to
22	make a prospective or concurrent utilization review adverse benefit determinations;
23	(2) Requirement that a representative of the utilization review agent is reasonably
24	accessible to beneficiaries and providers at least five (5) days a week during normal business
25	hours in Rhode Island and during the hours of the agency's operations when conducting
26	utilization review;
27	(3) Policies and procedures regarding the notification and conduct of patient interviews
28	by the utilization review agent to include a process and assurances that such interviews do not
29	disrupt care; and
30	(4) Requirement that the utilization review agent shall not impede the provision of health
31	care services for treatment and/or hospitalization or other use of a provider's services or facilities
32	for any beneficiary.
33	27-18.9-5. Benefit determination procedural requirements.
34	(a) Procedural failure by claimant.
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1	(1) In the event of the failure of claimant or an authorized representative to follow the
2	health care entities claims procedures for a pre-service claim the health care entity or its review
3	agent must:
4	(i) Notify claimant or the authorized representative, as appropriate, of this failure as soon
5	as possible and no later than five (5) calendar days following the failure and this notification must
6	also inform claimant of the proper procedures to file a pre-service claim; and
7	(ii) Notwithstanding the above, if the pre-service claim relates to urgent or emergent
8	health care services, the health care entity or its review agent must notify and inform claimant or
9	the authorized representative, as appropriate, of the failure and proper procedures within twenty-
10	four (24) hours following the failure. Notification may be oral, unless written notification is
11	requested by the claimant or authorized representative.
12	(2) Claimant must have stated name, specific medical condition or symptom and specific
13	treatment, service or product which approval is requested and submitted to proper claim
14	processing unit.
15	(b) Utilization review agent procedural requirements:
16	(1) All initial, prospective and concurrent non-administrative adverse benefit
17	determinations of a health care service that had been ordered by a physician, dentist or other
18	practitioner shall be made, documented, and signed by a licensed practitioner with the same
19	licensure status as the ordering provider;
20	(2) Utilization review agents are not prohibited from allowing appropriately qualified
21	review agency staff from engaging in discussions with the attending provider, the attending
22	provider's designee or appropriate health care facility and office personnel regarding alternative
23	service and/or treatment options. Such a discussion shall not constitute an adverse benefit
24	determination; provided, however, that any change to the attending provider's original order
25	and/or any decision for an alternative level of care must be made and/or appropriately consented
26	to by the attending provider or the provider's designee responsible for treating the beneficiary and
27	must be documented by the review agent; and
28	(3) A utilization review agent shall not retrospectively deny authorization for health care
29	services provided to a covered person when an authorization has been obtained for that service
30	from the review agent unless the approval was based upon inaccurate information material
31	to the review or the health care services were not provided consistent with the provider's
32	submitted plan of care and/or any restrictions included in the prior approval granted by the review
33	agent.
34	27-18.9-6. Benefit determination notifications.
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1	(a) Benefit determination notification timelines. A health care entity and/or its review
2	agent shall comply with the following:
3	(1) For urgent or emergent health care services benefit determinations (adverse or non-
4	adverse) shall be made as soon as possible taking into account exigencies but not later than 72
5	hours after receipt of the claim.
6	(2) For concurrent claims (adverse or non-adverse), no later than 24 hours after receipt of
7	the claim and prior to the expiration of the period of time or number of treatments. The claim
8	must have been made to the health care entity or review agent at least 24 hours prior to the
9	expiration of the period of time or number of treatments.
10	(3) For pre-service claims (adverse or non-adverse), within a reasonable period of time
11	appropriate to the medical circumstances, but not later than fifteen (15) calendar days after the
12	receipt of the claim. This may be extended up to fifteen (15) additional calendar days if
13	substantiated and claimant is noticed within the first fifteen (15) calendar-day period.
14	(4) For post-service claims adverse benefit determination no later than thirty (30)
15	calendar days after the receipt of the claim. This may be extended for fifteen (15) calendar days if
16	substantiated and claimant is noticed within the first thirty (30) calendar day period.
17	(5) Provision in the event of insufficient information from a claimant.
18	(i) For urgent or emergent care, the health care entity or review agent must notify
19	claimant as soon as possible, depending on exigencies, but no later than 24 hours after receipt of
20	claim giving specifics as to what information is needed. The health care entity or review agent
21	must allow claimant at least 48 hours to send additional information. The health care entity or
22	review agent must provide benefit determination as soon as possible and no later than 48 hours
23	after receipt of necessary additional information or end of period afforded to the claimant to
24	provide additional information, whichever is earlier.
25	(ii) For pre-service and post-service claims the notice by the health care entity or review
26	agent must include what specific information is needed. The claimant has forty-five (45) calendar
27	days from receipt of notice to provide information.
28	(iii) Timelines for decisions, in the event of insufficient information, are paused from the
29	date on which notice is sent to the claimant and restarted when the claimant responds to the
30	request for information.
31	(b) Notifications form and content requirements. Health care entities and review agents
32	shall comply with form and content notification requirements acceptable to the commissioner to
33	include but not be limited to the following:
34	(1) Notices may be written or electronic with reasonable assurance of receipt by claimant
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1	unless urgent or emergent. When urgent or emergent, oral notification is acceptable, absent a
2	specific request by claimant for written or electronic notice written, followed by written or
3	electronic notification within three (3) calendar days.
4	(2) Notification content shall:
5	(i) Be culturally and linguistically appropriate;
6	(ii) Provide details of a claim that is being denied to include date of service, provider,
7	amount of claim, diagnostic and treatment codes with corresponding meanings;
8	(iii) Give specific reason or reasons for the adverse benefit determination;
9	(iv) Include the reference(s) to specific health benefit plan or review agent provisions,
10	guideline, protocol or criterion on which the adverse benefit determination is based;
11	(v) If the decision is based on medical necessity, clinical criteria or experimental
12	treatment or similar exclusion or limit, then notice must include the scientific or clinical judgment
13	for the adverse determination;
14	(vi) Provide information for the beneficiary as to how to obtain copies of any and all
15	information relevant to denied claim free of charge;
16	(vii) Describe the internal and external appeal processes, as applicable, to include all
17	relevant review agency contacts and OHIC’s consumer assistance program information;
18	(viii) Clearly state timeline that the claimant has at least one hundred eighty (180)
19	calendar days following the receipt of notification of an adverse benefit determination to file an
20	appeal; and
21	(ix) Not written in a manner that could reasonably be expected to negatively impact the
22	beneficiary.
23	27-18.9-7. Internal appeal procedural requirements.
24	(a) Administrative and non-administrative appeals. The review agent shall conform to the
25	following for the internal appeal of administrative or non-administrative adverse benefit
26	determinations:
27	(1) The review agent shall maintain and make available a written description of its appeal
28	procedures by which either the beneficiary or the provider of record may seek review of
29	determinations not to authorize health care services.
30	(2) The process established by each review agent may include a reasonable period within
31	which an appeal must be filed to be considered and that period shall not be less than one hundred
32	eighty (180) calendar days after receipt of the adverse benefit determination notice.
33	(3) A reconsideration process may be utilized by the review agent in assessing an adverse
34	benefit determination and if utilized must be done in a manner that shall:
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1	(i) Not alter, in any way, the internal appeal process or appeal timelines; and
2	(ii) Be done pursuant to reasonable procedures acceptable to the commissioner.
3	(4) Prior to a final internal appeal decision, the review agent must allow the claimant to
4	review the entire adverse determination and appeal file and allow the claimant to present evidence
5	and/or additional testimony as part of the internal appeal process.
6	(5) No new evidence can be considered by the review agent without noticing the claimant
7	and providing the claimant with a copy of said new evidence.
8	(6) A review agent is only entitled to request and review information or data relevant to
9	the benefit determination and utilization review processes.
10	(7) The review agent shall maintain records of written adverse benefit determinations,
11	reconsiderations, appeals and their resolution, and shall provide reports as requested by the office.
12	(8) The review agent shall notify, in writing, the beneficiary and provider of record of its
13	decision on the appeal as soon as practical considering medical circumstances, but in no case later
14	than thirty (30) calendar days after receipt of the request for the review of an adverse benefit
15	determination.
16	(9) The review agent shall also provide for an expedited appeal process for urgent and
17	emergent situations taking into consideration medical exigencies. Each review agent shall
18	complete the adjudication of expedited appeals, including notification of the beneficiary and
19	provider of record of its decision on the appeal, but not later than seventy-two (72) hours after
20	receipt of the claimant’s request for the appeal of an adverse benefit determination.
21	(10) Benefits for an ongoing course of treatment cannot be reduced or terminated without
22	providing advance notice and an opportunity for advance review. The review agent or health care
23	entity is required to continue coverage pending the outcome of an appeal.
24	(11) A review agent may not disclose or publish individual medical records or any
25	confidential information obtained in the performance of benefit determination or utilization
26	review activities. A review agent shall be considered a third-party health insurer for the purposes
27	of section 5-37.3-6(b)(6) and shall be required to maintain the security procedures mandated in
28	section 5-37.3-4(c).
29	(b) Non-administrative appeals. In addition to section 27-18.9-7 (a) utilization review
30	agents shall conform to the following for its internal appeals adverse benefit determinations:
31	(1) A claimant is deemed to have exhausted the internal claims appeal process when the
32	utilization review agent or health care entity fails to strictly adhere to all benefit determination
33	and appeal processes with respect to a claim. In this case the claimant may initiate an external
34	appeal or remedies under 502(a) of ERISA or other state and federal law, as applicable.
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1	(2) No reviewer under this section, who has been involved in prior reviews or in the
2	adverse benefit determination under appeal or who has participated in the direct care of the
3	beneficiary, may participate in reviewing the case under appeal.
4	(3) All internal level appeals of utilization review determinations not to authorize a health
5	care service that had been ordered by a physician, dentist, or other provider shall be made
6	according to the following:
7	(i) The internal level appeal decision of a non-administrative adverse benefit
8	determination shall not be made until the utilization review agency's professional provider in the
9	same or similar specialty as typically manages the condition, procedure, treatment or requested
10	service under discussion has spoken to, or otherwise provided for, an equivalent two-way
11	direct communication with the beneficiary's attending physician, dentist, other professional
12	provider, or other qualified professional provider responsible for treatment of the beneficiary
13	concerning the medical care.
14	(ii) When the appeal of any adverse benefit determination is based in whole or in part on
15	medical judgment including determinations with regard to whether a particular service, treatment,
16	drug, or other item is experimental, investigational or not medically necessary or appropriate, the
17	reviewer making the internal appeal decision must be appropriately trained having the same
18	licensure status as the ordering provider or be a physician or dentist and be in the same or similar
19	specialty as typically manages the condition. These qualifications must be provided to the
20	claimant upon request.
21	(iii) The utilization review agency reviewer must document and sign their decisions.
22	(4) The review agent must ensure that an appropriately licensed practitioner or licensed
23	physician is reasonably available to review the case as required under section 27-18.9-7 9 (b) and
24	shall conform to the following:
25	(i) Each agency peer reviewer shall have access to and review all necessary information
26	as requested by the agency and/or submitted by the provider(s) and/or beneficiaries;
27	(ii) Each agency shall provide accurate peer review contact information to the provider at
28	the time of service, if requested, and/or prior to such service, if requested. This contact
29	information must provide a mechanism for direct communication with the agency's peer
30	reviewer; and
31	(iii) Agency peer reviewers shall respond to the provider's request for a two-way direct
32	communication defined in section 27-18.9-7 (b) as follows:
33	(A) For a prospective review of non-urgent and non-emergent health care services, a
34	response within one (1) business day of the request for a peer discussion;
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1	(B) For concurrent and prospective reviews of urgent and emergent health care services, a
2	response within a reasonable period of time of the request for a peer discussion; and
3	(C) For retrospective reviews, prior to the internal level appeal decision.
4	(5) The review agency will have met the requirements of a two-way direct
5	communication, when requested and/or as required prior to the internal level of appeal, when it
6	has made two (2) reasonable attempts to contact the attending provider directly. Repeated
7	violations of this section shall be deemed to be substantial violations pursuant to section
8	27-18.9-9 and shall be cause for the imposition of penalties under that section.
9	(6) For the appeal of an adverse benefit determination decision that a drug is not covered,
10	the review agent shall complete the internal appeal determination and notify the claimant of its
11	determination:
12	(i) No later than seventy-two (72) hours following receipt of the appeal request; or
13	(ii) No later than twenty-four (24) hours following the receipt of the appeal request in
14	cases where the beneficiary is suffering from a health condition that may seriously jeopardize the
15	beneficiary’s life, health, or ability to regain maximum function or when an beneficiary is
16	undergoing a current course of treatment using a non-formulary drug.
17	(iii) And if approved on appeal, coverage of the non-formulary drug must be provided for
18	the duration of the prescription, including refills unless expedited then for the duration of the
19	exigency.
20	(7) The review agents using clinical criteria and medical judgment in making utilization
21	review decisions shall comply with the following:
22	(i) The requirement that each review agent shall provide its clinical criteria;
23	(ii) Provide and use written clinical criteria and review procedures established according
24	to nationally accepted standards, evidence based medicine and protocols that are periodically
25	evaluated and updated or other reasonable standards required by the commissioner;
26	(iii) Establish and employ a process to incorporate and consider local variations to
27	national standards and criteria identified herein including without limitation, a process to
28	incorporate input from local participating providers; and
29	(iv) Updated clinical decision criteria to be available to beneficiaries, providers and the
30	office upon request and readily available accessible on the health care entity or the review agent’s
31	website.
32	(8)The review agent shall maintain records of written adverse benefit determination
33	reconsiderations and appeals to include their resolution, and shall provide reports and other
34	information as requested by the office.
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1	27-18.9-8. External appeal procedural requirements.
2	(a) General requirements.
3	(1) In cases where the non-administrative adverse benefit determination or the final
4	internal level of appeal to reverse a non-administrative adverse benefit determination is
5	unsuccessful, the health care entity or review agent shall provide for an external appeal by an
6	Independent Review Organization (IRO) approved by the commissioner and ensure that the
7	external appeal complies with all applicable laws and regulations.
8	(2) In order to seek an external appeal, claimant must have exhausted the internal claims
9	and appeal process unless the utilization review agent or health care entity has waived the internal
10	appeal process by failing to comply with the internal appeal process or the claimant has applied
11	for expedited external review at the same time as applying for expedited internal review.
12	(3) A claimant shall have at least four (4) months after receipt of a notice of the decision
13	on a final internal appeal to request an external appeal by an IRO.
14	(4) Health care entities and review agents must use a rotational IRO registry system
15	specified by the commissioner, and must select an IRO in the rotational manner described in the
16	IRO registry system.
17	(5) A claimant requesting an external appeal may be charged no more than a twenty-five
18	dollars ($25.00) external appeal fee by the review agent. The external appeal fee, if charged, must
19	be refunded to the claimant if the adverse benefit determination is reversed through external
20	review. The external appeal fee must be waived if payment of the fee would impose an undue
21	financial hardship on the beneficiary. In addition, the annual limit on external appeal fees for any
22	beneficiary within a single plan year (in the individual market, within a policy year) must not
23	exceed seventy-five dollars ($75.00).
24	(6) IRO and/or the review agent and or the health care entity may not impose a minimum
25	dollar amount of a claim for a claim to be eligible for external review by an IRO.
26	(7) The decision of the external appeal by the IRO shall be binding on the health care
27	entity and/or review agent; however, any person who is aggrieved by a final decision of the
28	external appeal agency is entitled to judicial review in a court of competent jurisdiction.
29	(8) The health care entity must provide benefits (including making payment on the claim)
30	pursuant to an external review decision without delay regardless whether the health care entity or
31	review agent intends to seek judicial review of the IRO decision.
32	(9) The commissioner shall promulgate rules and regulations including, but not limited
33	to, criteria for designation, operation, policy, oversight, and termination of designation as an IRO.
34	The IRO shall not be required to be certified under this chapter for activities conducted pursuant
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1	to its designation.
2	(b) The external appeal process shall include but not be limited to the following
3	characteristics:
4	(1) The claimant must be noticed that he/she shall have at least five (5) business days
5	from receipt of the external appeal notice to submit additional information to the IRO.
6	(2) The IRO must notice the claimant of its external appeal decision to uphold or overturn
7	the review agency decision:
8	(i) No more than ten (10) calendar days from receipt of all the information necessary to
9	complete the external review and not greater than forty-five (45) calendar days after the receipt
10	of the request for external review; and
11	(ii) In the event of an expedited external appeal by the IRO for urgent or emergent care,
12	as expeditiously as possible and no more than seventy-two (72) hours after the receipt of the
13	request for the external appeal by the IRO. Notwithstanding provisions in this section to the
14	contrary, this notice may be made orally but must be followed by a written decision within forty-
15	eight (48) hours after oral notice is given.
16	(3) For an external appeal of an internal appeal decision that a drug is not covered the
17	IRO shall complete the external appeal determination and notify the claimant of its determination:
18	(i) No later than seventy-two (72) hours following receipt of the external appeal request,
19	or;
20	(ii) No later than twenty-four (24) hours following the receipt of the external appeal
21	request if the original request was an expedited request; and
22	(iii) If approved on external appeal, coverage of the non-formulary drug must be provided
23	for the duration of the prescription, including refills, unless expedited then for the duration of the
24	exigencies.
25	(c) External appeal decision notifications. The health care entity and review agent must
26	ensure that the IRO adheres the following relative to decision notifications:
27	(1) May be written or electronic with reasonable assurance of receipt by claimant unless
28	urgent or emergent. If urgent or emergent, oral notification is acceptable followed by written or
29	electronic notification within three (3) calendar days;
30	(2) Must be culturally and linguistically appropriate;
31	(3) The details of claim that is being denied to include the date of service, provider name,
32	amount of claim, diagnostic code and treatment costs with corresponding meanings;
33	(4) Must include the specific reason or reasons for the external appeal decision;
34	(5) Must include information for claimant as to procedure to obtain copies of any and all
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1	information relevant to the external appeal which copies must be provided to the claimant free of
2	charge; and
3	(6) Must not be written in a manner that could reasonably be expected to negatively
4	impact the beneficiary.
5	27-18.9-9. Reporting requirements.
6	The office shall establish reporting requirements to determine if adverse benefit
7	determination and/or utilization review programs are in compliance with the provisions of this
8	chapter and applicable regulations as well as in compliance with applicable federal law.
9	27-1.9-10. Rules and regulations.
10	The health insurance commissioner may promulgate such rules and regulations as are
11	necessary and proper to effectuate the purpose and for the efficient administration and
12	enforcement of this chapter.
13	27-18.9-11. Waiver of requirements.
14	(a) The office shall waive the requirements of this chapter only when a conflict exists
15	with those activities of a review agent that are conducted pursuant to contracts with the state or
16	the federal government or those activities under other state or federal jurisdictions.
17	(b) The office shall waive de minimus activity, in accordance with the regulations
18	adopted by the commissioner.
19	27-18.9-12. Variance of statutory requirements.
20	Statutory variances shall be issued for a period not to exceed one (1) year and may be
21	subject to such terms and conditions deemed necessary as determined by the commissioner. Prior
22	to issuing a statutory variance the office may provide notice and public hearing to ensure
23	necessary beneficiary and health care provider protections in the process.
24	27-18.9-13. Denial, suspension, or revocation of certificate.
25	Adopted pursuant to this chapter;
26	(a) The office may deny a certificate or certification upon review of the application if,
27	upon review of the application, it finds that the applicant proposing to conduct utilization review
28	does not meet the standards required by this chapter or by any regulations promulgated pursuant
29	to this chapter.
30	(b) The office may revoke a certificate or certification and/or impose monetary penalties
31	not less than $100 and not to exceed fifty thousand dollars ($50,000) per violation and/or impose
32	an order requiring a monetary restitution or disgorgement payment in an amount determined by
33	the commissioner to reasonably reflect the amount of damages caused or monies improperly
34	obtained in any case in which:
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1	(1) The health care entity and/or review agent fails to comply substantially with the
2	requirements of this chapter or of regulations;
3	(2) The review agent/network plan and or health care entity and/or review agent fails to
4	comply with the criteria used by it in its application for a certificate or certification; or
5	(3) The health care entity and/or review agent refuses to permit or fails to reasonably
6	cooperate with an examination by the commissioner to determine compliance with the
7	requirements of this chapter and regulations promulgated pursuant to the authority granted to the
8	commissioner in this chapter. These determinations may involve consideration of any written
9	grievances filed with the office against the health care entity and/or review agent by patients or
10	providers.
11	(c) Any applicant or certificate or certification holder aggrieved by an order or a decision
12	of the commissioner made under this chapter without a hearing may, within thirty (30) days after
13	notice of the order or decision, make a written request to the office for a hearing on the order or
14	decision pursuant to section 42-35-15.
15	(d) The procedure governing hearings authorized by this section shall be in accordance
16	with section 42-35-9 – 42-35-13 as stipulated in section 42-35-14(a). A full and complete record
17	shall be kept of all proceedings, and all testimony shall be recorded but need not be transcribed
18	unless the decision is appealed pursuant to section 42-35-15. A copy or copies of the transcript
19	may be obtained by any interested party upon payment of the cost of preparing the copy or
20	copies. Witnesses may be subpoenaed by either party.
21	27-18.9-14. Criminal penalties.
22	(a) A person, firm, corporation, association or other legal entity who knowingly and
23	willfully violates this chapter shall be guilty of a misdemeanor and may be punished by a fine not
24	to exceed fifty thousand dollars ($50,000) or by imprisonment for a period of not more than one
25	year, or both.
26	(b) The statute of limitations for any criminal violation of the provisions of this chapter
27	shall be ten (10) years.
28	27-18.9-15. Administrative penalties.
29	(a) Whenever the commissioner shall have cause to believe that a violation of this chapter
30	has occurred by a health care entity and/or review agent or any person or entity conducting any
31	activities requiring certification under this chapter, the commissioner may, in accordance with the
32	requirements of the Administrative Procedures Act, chapter 35 of title 42:
33	(1) Revoke or suspend a license issued under this chapter;
34	(2) Levy an administrative penalty in an amount not less than one hundred dollars ($100)
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1	nor more than fifty thousand dollars ($50,000) per violation. In the case of a continuing
2	violation, each day’s continuance of the violation is deemed to be a separate and distinct offense;
3	(3) Order the violator to cease such actions;
4	(4) Require the health care entity and/or review agent or any person or entity conducting
5	any activities requiring certification under this chapter to take such actions as are necessary to
6	comply with this chapter or the regulations promulgated hereunder; or
7	(5) Any combination of the above penalties.
8	(b) Any monetary penalties assessed pursuant to this section shall be as general revenues.
9	(c) Nothing in this chapter shall limit the authority of the commissioner to seek any other
10	penalties or remedies available under applicable law or to conduct examinations, issue orders, and
11	recover the costs and expenses of state personnel or outside counsel or outside consultants or
12	experts pursuant to other provisions of the general laws.
13	27-18.9-16. Injunctions - cease and desist.
14	In addition to the penalties and other enforcement provisions available to the
15	commissioner pursuant to this chapter or any other applicable provision of law or regulation:
16	(a) If any person or entity violates this chapter or any rule implementing this chapter, the
17	commissioner may seek an injunction in a court of competent jurisdiction in this state and may
18	apply for temporary and permanent orders that the commissioner determines necessary to restrain
19	the person from further committing the violation.
20	(b) If the commissioner has reason to believe that any person or entity is violating or has
21	violated any provision of this chapter, any rule or order adopted by the commissioner, or any
22	written agreement entered into with the commissioner:
23	(i) The office may issue its order to that person, firm, corporation or association
24	commanding them to appear before the office at a hearing to be held no sooner than ten (10) days
25	nor later than twenty (20) days after issuance of that order to show cause why the office should
26	not issue an order to that person to cease and desist from the violation of the provisions of this
27	chapter.
28	(ii) The order to show cause may be served on any person, firm, corporation or
29	association named in the order in the same manner that summons in a civil action may be served,
30	or by mailing a copy of the order, certified mail, return receipt requested, to that person or entity
31	at any address at which he or she has done business or at which he or she lives. If, upon that
32	hearing, the office is satisfied that the person or entity is in fact violating any provision of this
33	chapter, then the office may order that person or entity, in writing, to cease and desist from that
34	violation.
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1	(iii) All hearings shall be governed in accordance with chapter 35 of title 42, the
2	"administrative procedures act." If that person or entity fails to comply with an order of the
3	commissioner after being afforded a hearing, the superior court in Providence County has
4	jurisdiction upon complaint of the commissioner to restrain and enjoin that person from violating
5	this chapter.
6	(c) If the commissioner has reason to believe that any person or entity is violating or has
7	violated any provision of this chapter, any rule or order adopted by the commissioner, or any
8	written agreement entered into with the commissioner and the commissioner finds that such an
9	action presents an immediate danger to the public and requires an immediate final order, he or she
10	may issue an emergency cease and desist order reciting with particularity the facts underlying
11	such findings. The emergency cease and desist order is effective immediately upon service of a
12	copy of the order on the respondent and remains effective for ninety (90) days. If the department
13	begins non-emergency cease and desist proceedings under subsections (a) or (b), the emergency
14	cease and desist order remains effective, absent an order by a court of competent jurisdiction
15	pursuant to section 42-35-1 et seq. In the event of a willful violation of this chapter, the superior
16	court may award statutory damages in addition to actual damages in an additional amount up to
17	three (3) times the actual damage award.
18	27-18.9-17. Severability.
19	If any provision of this chapter or the application of any provision to any person or
20	circumstance shall be held invalid, that invalidity shall not affect the provisions or application of
21	this chapter which can be given effect without the invalid provision or application, and to this end
22	the provisions of this chapter are declared to be severable.
23	SECTION 11. This article shall take effect as of July 1, 2017.
24	ARTICLE 6
25	RELATING TO GOVERNMENTAL REFORM
26	SECTION 1. Section 36-4-16.4 of the General Laws in Chapter 36-4 entitled “Merit
27	System” is hereby repealed.
28	36-4-16.4. Salaries of directors.
29	(a) In the month of March of each year, the department of administration shall conduct a
30	public hearing to determine salaries to be paid to directors of all state executive departments for
31	the following year, at which hearing all persons shall have the opportunity to provide testimony,
32	orally and in writing. In determining these salaries, the department of administration will take into
33	consideration the duties and responsibilities of the aforenamed officers, as well as such related
34	factors as salaries paid executive positions in other states and levels of government, and in
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1	comparable positions anywhere which require similar skills, experience, or training.
2	Consideration shall also be given to the amounts of salary adjustments made for other state
3	employees during the period that pay for directors was set last.
4	(b) Each salary determined by the department of administration will be in a flat amount,
5	exclusive of such other monetary provisions as longevity, educational incentive awards, or other
6	fringe additives accorded other state employees under provisions of law, and for which directors
7	are eligible and entitled.
8	(c) In no event will the department of administration lower the salaries of existing
9	directors during their term of office.
10	(d) Upon determination by the department of administration, the proposed salaries of
11	directors will be referred to the general assembly by the last day in April of that year to go into
12	effect thirty (30) days hence, unless rejected by formal action of the house and the senate acting
13	concurrently within that time.
14	(e) Notwithstanding the provisions of this section, for 2015 only, the time period for the
15	Department of Administration to conduct the public hearing shall be extended to July and the
16	proposed salaries shall be referred to the general assembly by August 30. The salaries may take
17	effect before next year, but all other provisions of this section shall apply.
18	SECTION 2. Sections 36-4-16.2 and 36-4-29 of the General Laws in Chapter 36-4
19	entitled “Merit System” are hereby amended to read as follows:
20	36-4-16.2. Duties and responsibilities of the department of administration.
21	(a) It is the duty of the department of administration to maintain a pay plan for
22	unclassified employees of the state, including any rules and regulations that are necessary to
23	implement and complement the plan. In maintaining the pay plan, it will be the duty of the
24	department of administration to allocate all new unclassified positions to existing grades within
25	the plan, and to review at least once annually all existing unclassified positions and to reallocate
26	those positions within the pay plan as it deems proper. No new unclassified position shall be
27	created or allocated or reallocated to any grade within the plan unless state agency and
28	department heads have been afforded the opportunity to make recommendations regarding the
29	proposed changes; provided further, however that any unclassified position that has been vacant
30	for more than twelve (12) months shall be canceled and removed from the unclassified pay plan
31	unless within that twelve (12) months the person having supervisory authority over the position
32	requests an extension, in which case the department of administration may approve an extension
33	of not more than twelve (12) months; and provided further, that employees, appointing
34	authorities, and the general public, shall be afforded an opportunity at a public hearing to provide
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1	testimony, orally and in writing, regarding the changes, prior to the department's submission of
2	recommendations to the governor. The agenda for the public hearing shall include a summary of
3	the proposed changes. Hearings conducted pursuant to this section shall be subject to the
4	provisions of chapter 46 of title 42.
5	(b) The department of administration, notwithstanding any provision to the contrary, shall
6	only have the authority to make recommendations to the governor provided however that the
7	governor may delegate his or her authority to receive, accept, modify or reject any
8	recommendations to the director of administration. The governor or the director of administration
9	through authority delegated by the governor shall approve and adopt the plan with such changes
10	as he or she may deem necessary. Following approval by the governor or the director of
11	administration through authority delegated by the governor, all unclassified pay plan changes
12	shall be included in the normal budget process in the appropriate section of the personnel
13	supplement.
14	(c) When the pay plan and regulations have been adopted they shall constitute the official
15	pay schedule for the positions in the unclassified service. Thereafter, no person in the unclassified
16	service shall be paid a salary that is greater than the maximum or less than the minimum rates
17	fixed by the approved pay plan and regulations or by amendments thereto, nor shall salary
18	adjustments for unclassified employees made by the department of administration during its
19	review exceed two (2) grades per year at the maximum of the grade; provided, however, that
20	unclassified employees shall be entitled to all monetary additives accorded other state employees,
21	including, but not limited to, longevity and incentive training awards.
22	36-4-29. Restoration to former position classification of promotional appointees
23	dismissed during probation.
24	Any promotional appointee, who was promoted on or after July 1, 2017 and whose
25	position restoration privileges are not governed by a valid collective bargaining agreement in
26	effect on June 30, 2017, who is dismissed from the position to which he or she was promoted
27	during the probationary period or at the conclusion thereof by reason of the failure of the
28	appointing authority to file a request for his or her continuance in the position shall may, at the
29	discretion of the appointing authority of the position from which he or she was promoted, be
30	restored to the position classification from which he or she was promoted even though it should
31	be necessary to lay off a person holding his or her former position.
32	SECTION 3. Sections 36-6-3 and 36-6-5 of the General Laws in Chapter 36-6 entitled
33	“Salaries and Traveling Expenses” are hereby amended to read as follows:
34	36-6-3. Salaries of directors of state departments.
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1	The general officers of the state shall receive such annual salaries as the general assembly
2	may by law determine. Directors shall receive such annual salaries as may be from time to time
3	established by the unclassified pay plan board which shall consist of seven (7) members as
4	provided in § 36-4-16. as determined by the governor. The state controller is hereby authorized
5	and directed to draw his or her orders upon the general treasurer for the payment of such sums, or
6	so much thereof, as may be required from time to time, upon receipt by him or her of properly
7	authenticated vouchers.
8	36-6-5. Manner of compensation prescribed by appropriation law.
9	All officials and employees shall be compensated in the manner provided by the annual
10	appropriation act or as may hereafter otherwise be prescribed by law. This section shall not apply
11	to the directors of the several departments of the state of Rhode Island or to the general officers of
12	the state of Rhode Island whose salaries shall be fixed by the general assembly.
13	SECTION 4. Section 44-1-14 of the General Laws in Chapter 44-1 entitled “State Tax
14	Officials” is hereby amended as follows:
15	44-1-14. Disclosure of information to tax officials of federal government or other
16	states, or to other persons.
17	Notwithstanding any other provision of law:
18	(1) The tax administrator may make available: (i) to the taxing officials of any other
19	states or of the federal government for tax purposes only any information that the administrator
20	may consider proper contained in tax reports or returns or any audit or the report of any
21	investigation made with respect to them, filed pursuant to the tax laws of this state; provided, that
22	other states or the federal government grant like privileges to the taxing officials of this state;
23	and/or (ii) to an officer or employee of the office of internal audit of the Rhode Island department
24	of administration any information that the administrator may consider proper contained in tax
25	reports or returns or any audit or the report of any investigation made with respect to them, filed
26	pursuant to the tax laws of this state, to whom disclosure is necessary for the purposes of fraud
27	detection and prevention in any state or federal program.
28	(2) The tax administrator shall not permit any federal return or federal return information
29	to be inspected by, or disclosed to, an individual who is the chief executive officer of the state or
30	any person other than:
31	(i) To another employee of the tax division for the purpose of, and only to the extent
32	necessary in, the administration of the state tax laws for which the tax division is responsible;
33	(ii) To another officer or employee of the state to whom the disclosure is necessary in
34	connection with processing, storage, and transmission of those returns and return information and
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1	solely for purposes of state tax administration;
2	(iii) To another person for the purpose of, but only to the extent necessary in, the
3	programming, maintenance, repair, testing, and procurement of equipment used in processing or
4	transmission of those returns and return information; or
5	(iv) To a legal representative of the tax division, personally and directly engaged in, and
6	solely for use in, preparation for a civil or civil criminal proceeding (or investigation which may
7	result in a proceeding) before a state administrative body, grand jury, or court in a matter
8	involving state tax administration, but only if:
9	(A) The taxpayer is or may be a party to the proceeding;
10	(B) The treatment of an item reflected on the return is or may be related to the resolution
11	of an issue in the proceeding or investigation; or
12	(C) The return or return information relates, or may relate, to a transactional relationship
13	between a person who is or may be a party to the proceeding and the taxpayer that affects or may
14	affect the resolution of an issue in a proceeding or investigation.
15	SECTION 5. This article shall take effect as of July 1, 2017.
16	ARTICLE 7
17	RELATING TO STATE FUNDS
18	SECTION 1. Section 21-28.6-17 of the General Laws in Chapter 21-28.6 entitled “The
19	Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act” is hereby amended to read as
20	follows:
21	21-28.6-17. Revenue.
22	(a) Effective July 1, 2016, all fees collected by the departments of health and business
23	regulation from applicants, registered patients, primary caregivers, authorized purchasers,
24	licensed cultivators, and cooperative cultivations, compassion centers, and compassion center
25	cardholders shall be placed in restricted receipt accounts to support the state's medical marijuana
26	program., including but not limited to payment of expenses incurred by the departments of health
27	and business regulation for the administration of the program.
28	(b) All revenues remaining in the restricted receipt accounts after payments specified in
29	subdivision (a) of this section shall first be paid to cover any existing deficit in the department of
30	health’s restricted receipt account or the department of business regulation’s restricted receipt
31	account. These transfers shall be made annually on the last business day of the fiscal year.
32	(c) All revenues remaining in the restricted receipt accounts after payments specified in
33	subdivisions (a) and (b) shall be paid into the state’s general fund. These payments shall be made
34	annually on the last business day of the fiscal year.
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1	SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled “State
2	Funds” is hereby amended to read as follows:
3	35-4-27. Indirect cost recoveries on restricted receipt accounts.
4	Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all
5	restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there
6	shall be no transfer from cash receipts with restrictions received exclusively: (1) From
7	contributions from non-profit charitable organizations; (2) From the assessment of indirect cost
8	recovery rates on federal grant funds; or (3) Through transfers from state agencies to the
9	department of administration for the payment of debt service. These indirect cost recoveries shall
10	be applied to all accounts, unless prohibited by federal law or regulation, court order, or court
11	settlement. The following restricted receipt accounts shall not be subject to the provisions of this
12	section:
13	Executive Office of Health and Human Services
14	Organ Transplant Fund
15	HIV Care Grant Drug Rebates
16	Department of Human Services
17	Veterans' home – Restricted account
18	Veterans' home – Resident benefits
19	Pharmaceutical Rebates Account
20	Demand Side Management Grants
21	Veteran's Cemetery Memorial Fund
22	Donations – New Veterans' Home Construction
23	Department of Health
24	Providence Water Lead Grant
25	Lead Poisoning Prevention
26	Pandemic medications and equipment account
27	Miscellaneous Donations/Grants from Non-Profits
28	State Loan Repayment Match
29	Department of Behavioral Healthcare, Developmental Disabilities and Hospitals
30	Eleanor Slater non-Medicaid third-party payor account
31	Hospital Medicare Part D Receipts
32	RICLAS Group Home Operations
33	Commission on the Deaf and Hard of Hearing
34	Emergency and public communication access account
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1	Department of Environmental Management
2	State Park Merchandising
3	National heritage revolving fund
4	Environmental response fund II
5	Underground storage tanks registration fees
6	Rhode Island Historical Preservation and Heritage Commission
7	Historic preservation revolving loan fund
8	Historic Preservation loan fund – Interest revenue
9	Department of Public Safety
10	Forfeited property – Retained
11	Forfeitures – Federal
12	Forfeited property – Gambling
13	Donation – Polygraph and Law Enforcement Training
14	Rhode Island State Firefighter's League Training Account
15	Fire Academy Training Fees Account
16	Attorney General
17	Forfeiture of property
18	Federal forfeitures
19	Attorney General multi-state account
20	Forfeited property – Gambling
21	Department of Administration
22	OER Reconciliation Funding
23	RI Health Benefits Exchange
24	Office of Management and Budget
25	Information Technology Investment Fund
26	Restore and replacement – Insurance coverage
27	Convention Center Authority rental payments
28	Investment Receipts – TANS
29	OPEB System Restricted Receipt Account
30	Car Rental Tax/Surcharge-Warwick Share
31	Housing Resources Commission Restricted Account
32	Department of Revenue
33	DMV Modernization Project
34	DMV Registry Technology
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1	Jobs Tax Credit Redemption Fund
2	Legislature
3	Audit of federal assisted programs
4	Department of Children, Youth and Families
5	Children's Trust Accounts – SSI
6	Military Staff
7	RI Military Family Relief Fund
8	RI National Guard Counterdrug Program
9	Treasury
10	Admin. Expenses – State Retirement System
11	Retirement – Treasury Investment Options
12	Defined Contribution – Administration - RR
13	Violent Crimes Compensation – Refunds
14	Treasury Research Fellowship
15	Business Regulation
16	Banking Division Reimbursement Account
17	Office of the Health Insurance Commissioner Reimbursement Account
18	Securities Division Reimbursement Account
19	Commercial Licensing and Racing and Athletics Division Reimbursement Account
20	Insurance Division Reimbursement Account
21	Historic Preservation Tax Credit Account.
22	Judiciary
23	Arbitration Fund Restricted Receipt Account
24	Third-Party Grants
25	RI Judiciary Technology Surcharge Account
26	Department of Elementary and Secondary Education
27	Statewide Student Transportation Services Account
28	School for the Deaf Fee for Service Account
29	Davies Career and Technical School Local Education Aid Account
30	Davies – National School Breakfast & Lunch Program
31	Office of the Post-Secondary Commissioner
32	Westerly Higher Education and Industry Center
33	Department of Labor and Training
34	Job Development Fund
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1	Department of Transportation
2	Rhode Island Highway Maintenance Account
3	SECTION 3. Title 35 of the General Laws entitled “Public Finance” is hereby amended
4	by adding thereto the following chapter:
5	CHAPTER 35-4.1
6	PERFORMANCE IMPROVEMENT FUND ACT
7	35-4.1-1. Legislative findings.
8	The general assembly finds and recognizes:
9	(a) The importance of pursuing data-driven approaches to improving service delivery,
10	and that limited state resources should be allocated based on proven results, not inputs or
11	promised successes.
12	(b) That pay for success contracts provide an opportunity for the state to address the
13	challenges of improving service delivery with limited resources as these contracts both:
14	(1) Create incentives for improved performance and reduced costs, allow for more rapid
15	learning about which programs work and which do not, and accelerate the adoption of new, more
16	effective solutions, and
17	(2) Provide a mechanism to bring upfront financial support from the private and nonprofit
18	sectors to innovative social programs that the state only repays if contractual performance targets
19	are achieved, thereby reducing the state’s financial risk in supporting innovative initiatives.
20	35-4.1-2. Definitions.
21	For the purpose of this chapter:
22	(a) “Performance targets” means the level of performance, as measured by an
23	independent evaluator, which represent success. Success is defined in the pay for success
24	contract.
25	(b) “Independent evaluator” means an independent entity selected by the state whose role
26	includes assessing and reporting on the achievement of performance targets at the frequency
27	required in the pay for success contract.
28	(c) “Success payments” refer to the payments that the state will make only if contractual
29	performance targets are achieved as determined by the independent evaluator and approved by
30	the office of management and budget.
31	(d) “Pay for success contracts” are contracts designed to improve outcomes and lower
32	costs for contracted government services that are subject to the following requirements:
33	(1) A determination that the contract will result in significant performance improvements
34	and budgetary savings across all impacted agencies if the performance targets are achieved;
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1	(2) A requirement that a substantial portion of any payment be conditioned on the
2	achievement of specific outcomes based on defined performance targets;
3	(3) An objective process by which an independent evaluator will determine whether the
4	performance targets have been achieved;
5	(4) A calculation of the amount and timing of payments that would be earned by the
6	service provider during each year of the agreement if performance targets are achieved as
7	determined by the independent evaluator; and
8	(5) Payments shall only be made if performance targets are achieved.
9	35-4.1-3. Creation of the Government Performance Improvement Fund.
10	(a) There is hereby created and established in the state treasury a fund to be known as the
11	“government performance improvement fund” to which shall be deposited appropriations as may
12	be made from time to time by the general assembly. All money now or hereafter in the
13	government performance improvement fund are hereby dedicated for the purpose of funding pay
14	for success contracts.
15	(b) By signing the pay for success contract, the authorizing department or agency is
16	confirming that the contract has met the requirements established in this chapter.
17	(c) The department of administration is charged with the administration of this fund for
18	the purposes specified in this section, and may make payments from the fund only in accordance
19	with the terms and conditions of pay for success contracts and upon approval of the director of
20	the office of management and budget. All claims against the fund shall be examined, audited, and
21	allowed in the manner now or hereafter provided by law for claims against the state.
22	(d) The department of administration shall provide an annual status report for the prior
23	fiscal year on all contracts not later than December 31 of each year to the house and senate
24	finance committees.
25	SECTION 4. Chapter 42.17.1 of the General Laws entitled “Department of
26	Environmental Management” is hereby amended by adding thereto the following sections:
27	42.17.1.26. Parks and Recreation Merchandising.
28	There is hereby established within the department of environmental management a
29	restricted receipt account entitled “state park merchandising.” All proceeds from the sale of
30	merchandise developed by the department to promote Rhode Island’s state parks, beaches, and
31	campgrounds shall be deposited into the restricted receipt account. The monies deposited into
32	this account shall be specifically used to (1) replenish merchandise stock and (2) provide
33	additional funding for special park projects that enhance recreational facilities and/or expand
34	interpretive, educational and recreational programming managed by the department. Funds
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1	generated by the sale of merchandise shall not be used to supplement the annual operating
2	expenses of the division of parks and recreation.
3	42-17.1.27. Eisenhower House – Rental fees.
4	(a) There is hereby established within the department of environmental management a
5	restricted receipt account entitled “Eisenhower house”. All proceeds from rental fees for the use
6	of the Eisenhower house and its surrounding grounds shall be deposited into this account and
7	used for reinvestment and maintenance of the facility. The rental fees for the use of Eisenhower
8	house and surrounding grounds shall be established by regulation. The department of
9	environmental management may require certain attendants to be present during rental hours, and
10	may require the lessees to reimburse the cost of such service provided to reflect the actual cost to
11	the department. The department may also require reasonable amounts of liability insurance to be
12	obtained by the lessee.
13	(b) The department of environmental management and the state shall not be civilly liable
14	for the acts or omissions of the lessees of the Eisenhower house.
15	SECTION 5. Section 42-45-12 of the General Laws entitled “Rhode Island Historical
16	Preservation and Heritage Commission” is hereby repealed.
17	42-45-12. Eisenhower House – Rental fees.
18	(a) The historical preservation and heritage commission is hereby authorized to collect
19	rental fees for use of the Eisenhower House and surrounding grounds. The rental fees shall be
20	established by regulation. All fees collected under this section shall be deposited as general
21	revenues. The historical preservation and heritage commission may require certain attendants to
22	be present during rental hours and may require the lessees to reimburse the cost of such service
23	provided such cost reflect the actual cost of the commission. The commission may also require
24	reasonable amounts of liability insurance to be obtained by the lessee.
25	(b) The historical preservation and heritage commission and the state shall not be civilly
26	liable for the acts or omissions of the lessees of the Eisenhower House.
27	SECTION 6. Section 44-1-36 of the General Laws in Chapter 44-1 entitled “State Tax
28	Officials” is hereby amended to read as follows:
29	44-1-36. Contracts.
30	(a) Except as set forth in section (b) below, the division of taxation may enter into
31	contracts with persons (defined herein as individuals, firms, fiduciaries, partnerships,
32	corporations, trusts, or associations, however formed) to be paid on a contingent fee basis, for
33	services rendered to the division of taxation where the contract is for the collection of taxes,
34	interest, or penalty or the reduction of refunds claimed. Under such contracts the contingent fee
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1	shall be based on the actual amount of taxes, interest and/or penalties collected and/or the amount
2	by which the claimed refund is reduced.
3	(b) The division of taxation may not enter into a contingent fee contract under which the
4	person directly conducts a field audit.
5	(c) The division of taxation shall publish an annual report setting forth the number of
6	contracts entered into under paragraph (a), the amount collected and the percentage of the
7	contingency fee arrangement of each contract.
8	(d) With respect to any contingent fee contract entered into pursuant to subsection (a)
9	above, the division of taxation is authorized to utilize a portion of the balance of monies collected
10	under said contract(s) after payment of the contingent fee payable thereunder, for the support and
11	maintenance of the division’s computer system, as authorized by the director of the office of
12	management and budget.
13	SECTION 7. This article shall take effect as of July 1, 2017.
14	ARTICLE 8
15	RELATING TO TAX AND REVENUES
16	SECTION 1. Section 31-36-20 of the General Laws in Chapter 31-36 entitled “Motor
17	Fuel Tax” is hereby amended to read as follows:
18	31-36-20. Disposition of proceeds.
19	(a) Notwithstanding any other provision of law to the contrary, all moneys paid into the
20	general treasury under the provisions of this chapter or chapter 37 of this title, and title 46 shall be
21	applied to and held in a separate fund and be deposited in any depositories that may be selected
22	by the general treasurer to the credit of the fund, which fund shall be known as the Intermodal
23	Surface Transportation Fund; provided, that in fiscal year 2004 for the months of July through
24	April six and eighty-five hundredth cents ($0.0685) per gallon of the tax imposed and accruing
25	for the liability under the provisions of § 31-36-7, less refunds and credits, shall be transferred to
26	the Rhode Island public transit authority as provided under § 39-18-21. For the months of May
27	and June in fiscal year 2004, the allocation shall be five and five hundredth cents ($0.0505).
28	Thereafter, until fiscal year 2006, the allocation shall be six and twenty-five hundredth cents
29	($0.0625). For fiscal years 2006 through FY 2008, the allocation shall be seven and twenty-five
30	hundredth cents ($0.0725); provided, that expenditures shall include the costs of a market survey
31	of non-transit users and a management study of the agency to include the feasibility of moving
32	the Authority into the Department of Transportation, both to be conducted under the auspices of
33	the state budget officer. The state budget officer shall hire necessary consultants to perform the
34	studies, and shall direct payment by the Authority. Both studies shall be transmitted by the
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1	Budget Officer to the 2006 session of the General Assembly, with comments from the Authority.
2	For fiscal year 2009, the allocation shall be seven and seventy-five hundredth cents ($0.0775), of
3	which one-half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental
4	protection fee pursuant to § 46-12.9-11. For fiscal years 2010 and thereafter, the allocation shall
5	be nine and seventy-five hundredth cents ($0.0975), of which of one-half cent ($0.005) shall be
6	derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-
7	11. One cent ($0.01) Twenty-one hundredth cents ($0.0021) per gallon shall be transferred to the
8	Elderly/Disabled Transportation Program of the department of human services, and seventy-nine
9	hundredth cents ($0.0079) shall be transferred to the Rhode Island public transit authority for the
10	elderly/disabled transportation program, and the remaining cents per gallon shall be available for
11	general revenue as determined by the following schedule:
12	(i) For the fiscal year 2000, three and one fourth cents ($0.0325) shall be available for
13	general revenue.
14	(ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for
15	general revenue.
16	(iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general
17	revenue.
18	(iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for
19	general revenue.
20	(v) For the months of July through April in fiscal year 2004, one and four-tenths cents
21	($0.014) shall be available for general revenue. For the months of May through June in fiscal year
22	2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter,
23	until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year
24	2006 through fiscal year 2009 one cent ($0.01) shall be available for general revenue.
25	(2) All deposits and transfers of funds made by the tax administrator under this section,
26	including those to the Rhode Island public transit authority, the department of human services and
27	the general fund, shall be made within twenty-four (24) hours of receipt or previous deposit of the
28	funds in question.
29	(3) Commencing in fiscal year 2004, the Director of the Rhode Island Department of
30	Transportation is authorized to remit, on a monthly or less frequent basis as shall be determined
31	by the Director of the Rhode Island Department of Transportation, or his or her designee, or at the
32	election of the Director of the Rhode Island Department of Transportation, with the approval of
33	the Director of the Department of Administration, to an indenture trustee, administrator, or other
34	third party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax
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1	imposed, in order to satisfy debt service payments on aggregate bonds issued pursuant to a Joint
2	Resolution and Enactment Approving the Financing of Various Department of Transportation
3	Projects adopted during the 2003 session of the General Assembly, and approved by the
4	Governor.
5	(4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be
6	transferred to the Rhode Island Turnpike and Bridge Authority to be used for maintenance,
7	operations, capital expenditures and debt service on any of its projects as defined in chapter 12 of
8	title 24 in lieu of a toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge
9	authority is authorized to remit to an indenture trustee, administrator, or other third party
10	fiduciary any or all of the foregoing transfers in order to satisfy and/or secure its revenue bonds
11	and notes and/or debt service payments thereon, including, but not limited to, the bonds and notes
12	issued pursuant to the Joint Resolution set forth in Section 3 of Article 6 of Chapter 23 of the
13	Public Laws of 2010. Notwithstanding any other provision of said Joint Resolution the Rhode
14	Island turnpike and bridge authority is expressly authorized to issue bonds and notes previously
15	authorized under said Joint Resolution for financing all expenses incurred by it for the formerly
16	authorized tolling of the Sakonnet River Bridge and the termination thereof.
17	(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund
18	shall be dedicated to the department of transportation, subject to annual appropriation by the
19	general assembly. The director of transportation shall submit to the general assembly, budget
20	office and office of the governor annually an accounting of all amounts deposited in and credited
21	to the fund together with a budget for proposed expenditures for the succeeding fiscal year in
22	compliance with §§ 35-3-1 and 35-3-4. On order of the director of transportation, the state
23	controller is authorized and directed to draw his or her orders upon the general treasurer for the
24	payments of any sum or portion of the sum that may be required from time to time upon receipt
25	of properly authenticated vouchers.
26	(c) At any time the amount of the fund is insufficient to fund the expenditures of the
27	department of transportation, not to exceed the amount authorized by the general assembly, the
28	general treasurer is authorized, with the approval of the governor and the director of
29	administration, in anticipation of the receipts of monies enumerated in § 31-36-20 to advance
30	sums to the fund, for the purposes specified in § 31-36-20, any funds of the state not specifically
31	held for any particular purpose. However, all the advances made to the fund shall be returned to
32	the general fund immediately upon the receipt by the fund of proceeds resulting from the receipt
33	of monies to the extent of the advances.
34	SECTION 2. Sections 44-20-12 and 44-20-13 of the General Laws in Chapter 44-20
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1	entitled “Cigarette Tax” are hereby amended to read as follows:
2	44-20-12. Tax imposed on cigarettes sold.
3	A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax
4	to be evidenced by stamps, which may be affixed only by licensed distributors to the packages
5	containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this
6	chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under
7	this chapter. The tax is at the rate of one hundred eighty-seven and one half (187.5) two hundred
8	twelve and one-half (212.5) mills for each cigarette.
9	44-20-13. Tax imposed on unstamped cigarettes.
10	A tax is imposed at the rate of one hundred eighty-seven and one half (187.5) two
11	hundred twelve and one-half (212.5) mills for each cigarette upon the storage or use within this
12	state of any cigarettes not stamped in accordance with the provisions of this chapter in the
13	possession of any consumer within this state.
14	SECTION 3. Chapter 44-20 of the General Laws entitled “Cigarette Tax” is hereby
15	amended by adding thereto the following section:
16	44-20-12.6. Floor stock tax on cigarettes and stamps.
17	(a) Each person engaging in the business of selling cigarettes at retail in this state shall
18	pay a tax or excise to the state for the privilege of engaging in that business during any part of the
19	calendar year 2017. In calendar year 2017, the tax shall be measured by the number of cigarettes
20	held by the person in this state at 12:01 a.m. on August 1, 2017 and is computed at the rate of
21	twenty-five (25.0) mills for each cigarette on August 1, 2017.
22	(b) Each distributor licensed to do business in this state pursuant to this chapter shall pay
23	a tax or excise to the state for the privilege of engaging in that business during any part of the
24	calendar year 2017. The tax is measured by the number of stamps, whether affixed or to be
25	affixed to packages of cigarettes, as required by § 44-20-28. In calendar year 2017 the tax is
26	measured by the number of stamps), whether affixed or to be affixed, held by the distributor at
27	12:01 a.m. on August 1, 2017, and is computed at the rate of twenty-five (25.0) mills per cigarette
28	in the package to which the stamps are affixed or to be affixed.
29	(c) Each person subject to the payment of the tax imposed by this section shall, on or
30	before August 15, 2017, file a return, under oath or certified under the penalties of perjury, with
31	the tax administrator on forms furnished by him or her, showing the amount of cigarettes and the
32	number of stamps in that person's possession in this state at 12:01 a.m. on August 1, 2017, as
33	described in this section above, and the amount of tax due, and shall at the time of filing the
34	return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the
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1	failure to make a return containing the information required by the tax administrator.
2	(d) The tax administrator may prescribe rules and regulations, not inconsistent with law,
3	with regard to the assessment and collection of the tax imposed by this section.
4	SECTION 4. Chapter 44-1 of the General Laws entitled “State Tax Officials” is hereby
5	amended by adding thereto the following sections:
6	44-1-37. Administrative penalties and attorney’s fees.
7	(a) Whenever a licensee and/or a taxpayer violates any provision of title 44 or the
8	regulations promulgated thereunder, the tax administrator may, in accordance with the
9	requirements of the Administrative Procedures Act, Chapter 35 of Title 42 of the Rhode Island
10	General Laws:
11	(1) Revoke or suspend a license or permit issued by the division of taxation;
12	(2) Levy an administrative penalty in an amount not less than one hundred ($100) nor
13	more than fifty thousand dollars ($50,000);
14	(3) Order the violator to cease such actions; and/or
15	(4) Any combination of the above penalties.
16	(b) The tax administrator is hereby authorized, and may in his or her discretion, recover
17	the reasonable cost of legal services provided by in-house attorneys in the Department of
18	Revenue and/or the Division of Taxation incurred in matters pertaining to administrative
19	hearings, court hearings, and appeals. Nothing in this section shall limit the power of the tax
20	administrator to retain outside legal counsel and to recover the costs of such legal counsel
21	pursuant to other provisions of the general laws.
22	(c) Any monetary penalties assessed pursuant to this section shall be as general revenues.
23	44-1-38. Jeopardy determinations.
24	If the tax administrator believes that the collection of any amount of tax, interest, and/or
25	penalty assessed in a notice of deficiency determination will be jeopardized by a delay which
26	could render a person or entity judgment proof and/or frustrate the collectability of said
27	determination, the tax administrator shall thereupon make a jeopardy determination of the amount
28	of tax required to be collected, including interest and penalties, if any. Said jeopardy
29	determination shall state briefly the facts upon which it is based. The amount of the tax, interest,
30	and/or penalties so determined is shall be due and payable immediately upon the mailing by the
31	tax administrator of the notice of that jeopardy determination. Within thirty (30) days of the date
32	of the mailing of the notice of the jeopardy determination, the taxpayer may bring an action in the
33	sixth (6th) division district court appealing the jeopardy determination. Within twenty (20) days
34	after the action is commenced, the district court shall make a determination of whether or not the
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1	making of the jeopardy assessment is was reasonable under the circumstances.
2	44-1-39. Information deemed state property.
3	For the purpose of determining taxpayer compliance, any and all information or data
4	required to be generated or maintained pursuant to title 44 and/or the regulations promulgated
5	thereunder, shall be deemed to be the property of the State of Rhode Island.
6	SECTION 5. Sections 44-11-2.2 and 44-11-29 of the General Laws in Chapter 44-11
7	entitled “Business Corporation Tax” are hereby amended to read as follows:
8	44-11-2.2 Pass-Through Entities – Definitions – Withholding – Returns.
9	(a) Definitions.
10	(1) "Pass-through entity" means a corporation that for the applicable tax year is treated as
11	an S Corporation under IRC § 1362(a) [26 U.S.C. § 1362(a)], and a general partnership, limited
12	partnership, limited liability partnership, trust, or limited liability company that for the applicable
13	tax year is not taxed as a corporation for federal tax purposes under the state's check-the-box
14	regulation.
15	(2) "Member" means an individual who is a shareholder of an S corporation; a partner in
16	a general partnership, a limited partnership, or a limited liability partnership; a member of a
17	limited liability company; or a beneficiary of a trust;
18	(3) "Nonresident" means an individual who is not a resident of or domiciled in the state, a
19	business entity that does not have its commercial domicile in the state, and a trust not organized
20	in the state.
21	(b) Withholding.
22	(1) A pass-through entity shall withhold income tax at the highest Rhode Island
23	withholding tax rate provided for individuals or nine percent (9%) seven percent (7%) for
24	corporations on the member's share of income of the entity which is derived from or attributable
25	to sources within this state distributed to each nonresident member and pay the withheld amount
26	in the manner prescribed by the tax administrator. The pass-through entity shall be liable for the
27	payment of the tax required to be withheld under this section and shall not be liable to such
28	member for the amount withheld and paid over in compliance with this section. A member of a
29	pass-through entity that is itself a pass-through entity (a "lower-tier pass-through entity") shall be
30	subject to this same requirement to withhold and pay over income tax on the share of income
31	distributed by the lower-tier pass-through entity to each of its nonresident members. The tax
32	administrator shall apply tax withheld and paid over by a pass-through entity on distributions to a
33	lower-tier pass-through entity to the withholding required of that lower-tier pass-through entity.
34	(2) A pass-through entity shall, at the time of payment made pursuant to this section,
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1	deliver to the tax administrator a return upon a form prescribed by the tax administrator showing
2	the total amounts paid or credited to its nonresident members, the amount withheld in accordance
3	with this section, and any other information the tax administrator may require. A pass-through
4	entity shall furnish to its nonresident member annually, but not later than the fifteenth day of the
5	third month after the end of its taxable year, a record of the amount of tax withheld on behalf of
6	such member on a form prescribed by the tax administrator.
7	(c) Notwithstanding subsection (b), a pass-through entity is not required to withhold tax
8	for a nonresident member if:
9	(1) The member has a pro rata or distributive share of income of the pass-through entity
10	from doing business in, or deriving income from sources within, this State of less than $1,000 per
11	annual accounting period;
12	(2) The tax administrator has determined by regulation, ruling or instruction that the
13	member's income is not subject to withholding; or
14	(3) The member elects to have the tax due paid as part of a composite return filed by the
15	pass-through entity under subsection (d); or
16	(4) The entity is a publicly traded partnership as defined by Section 7704(b) of the
17	Internal Revenue Code (26 U.S.C. § 7704(b)) that is treated as a partnership for the purposes of
18	the Internal Revenue Code and that has agreed to file an annual information return reporting the
19	name, address, taxpayer identification number and other information requested by the tax
20	administrator of each unitholder with an income in the state in excess of $500.
21	(d) Composite return.
22	(1) A pass-through entity may file a composite income tax return on behalf of electing
23	nonresident members reporting and paying income tax at the state's highest marginal rate on the
24	members' pro rata or distributive shares of income of the pass-through entity from doing business
25	in, or deriving income from sources within, this State.
26	(2) A nonresident member whose only source of income within a state is from one or
27	more pass-through entities may elect to be included in a composite return filed pursuant to this
28	section.
29	(3) A nonresident member that has been included in a composite return may file an
30	individual income tax return and shall receive credit for tax paid on the member's behalf by the
31	pass-through entity.
32	44-11-29. Notice to tax administrator of sale of assets – Tax due.
33	(a) The sale or transfer of the major part in value of the assets of a domestic corporation,
34	domestic limited liability company, domestic limited partnership, or any other domestic business
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1	entity, or of the major part in value of the assets situated in this state of a foreign corporation,
2	foreign limited liability company, foreign limited partnership, or any other foreign business
3	entity, other than in the ordinary course of trade and in the regular and usual prosecution of the
4	corporation’s business by said corporation, limited liability company, limited partnership, or any
5	other business entity whether domestic or foreign, and the sale or transfer of the major part in
6	value of the assets of a domestic corporation, domestic limited liability company, domestic
7	limited partnership, or any other domestic corporation business entity, or of the major part in
8	value of the assets situated in this state of a foreign corporation, foreign limited liability company,
9	foreign limited partnership, or any other foreign business entity which is engaged in the business
10	of buying, selling, leasing, renting, managing, or dealing in real estate, shall be fraudulent and
11	void as against the state unless the corporation, limited liability company, limited partnership, or
12	any other business entity, whether domestic or foreign, corporation shall, at least five (5) business
13	days before the sale or transfer, notify notifies the tax administrator of the proposed sale or
14	transfer and of the price, terms, and conditions of the sale or transfer and of the character and
15	location of the assets by requesting a letter of good standing from the tax division. Whenever a
16	corporation, limited liability company, limited partnership, or any other business entity, whether
17	domestic or foreign, shall makes such a sale or transfer, the tax imposed by this chapter any and
18	all tax returns required to be filed under this title must be filed and any and all taxes imposed
19	under this title shall become due and payable at the time when the tax administrator is so notified
20	of the sale or transfer, or, if he or she is not so notified, at the time when he or she should have
21	been notified of the sale or transfer.
22	(b) This section shall not apply to sales by receivers, assignees under a voluntary
23	assignment for the benefit of creditors, trustees in bankruptcy, debtors in possession in
24	bankruptcy, or public officers acting under judicial process.
25	SECTION 6. Section 44-18-30 of the General Laws in Chapter 44-18 entitled “Sales and
26	Use Taxes – Liability and Computation” is hereby amended to read as follows:
27	44-18-30.1. Application for certificate of exemption – Fees.
28	A fee of twenty-five dollars ($25.00) shall be paid by all organizations applying for a
29	certificate of exemption from the Rhode Island sales and use tax under § 44-18-30(5). The
30	certificate of exemption shall be valid for four (4) years from the date of issue. All fees collected
31	under this section shall be allocated to the tax administrator for enforcement and collection of all
32	taxes. All certificates issued prior to the effective date of this section shall expire four (4) years
33	from the effective date of this section.
34	SECTION 7. Sections 44-19-22, 44-19-31, and 44-19-42 of the General Laws in Chapter
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1	44-19 entitled “Sales and Use Taxes – Enforcement and Collection” are hereby amended to read
2	as follows:
3	44-19-22. Notice of transfer of business – Taxes due immediately.
4	The sale or transfer by any taxpayer other than receivers, assignees under a voluntary
5	assignment for the benefit of creditors, trustees in bankruptcy, debtors in possession in
6	bankruptcy, or public officers acting under judicial process of the major part in value of the assets
7	of the taxpayer other than in the ordinary course of trade and the regular and usual prosecution of
8	the taxpayer’s business, is fraudulent and void as against the state, unless the taxpayer, at least
9	five (5) days before the sale or transfer, notifies the tax administrator of the proposed sale or
10	transfer and of the price, terms, and conditions of the sale or transfer and of the character and
11	location of those assets by requesting a letter of good standing from the tax division. Whenever
12	the taxpayer makes a sale or transfer, any and all tax returns required to be filed under this title
13	must be filed and any and all taxes imposed under by chapter 18 of this title must be paid at the
14	time when the tax administrator is so notified of the sale or transfer, or, if the administrator is not
15	so notified, at the time when he or she the administrator should have been notified of the sale or
16	transfer.
17	44-19-31. Penalty for violations generally.
18	Any retailer or other person failing to file a return or report required by this chapter, or
19	filing or causing to be filed, or making or causing to be made, or giving or causing to be given
20	any return, report, certificate, affidavit, representation, information, testimony, or statement
21	required or authorized by this chapter, which is willfully false, or willfully failing to file a bond
22	required by this chapter or willfully failing to comply with the provisions of this chapter, or
23	failing to file a registration certificate and that data in connection with it as the tax administrator
24	by regulation or may require, or to display or surrender a permit as required by this chapter, or
25	assigning or transferring the permit, or failing to file a notice of a show or failing to display a
26	permit to operate a show or operating a show without obtaining a permit, or permitting a person
27	to display or sell tangible personal property, services, or food and drink at a show without
28	displaying a permit, or willfully failing to charge separately the tax imposed by this chapter or to
29	state the tax separately on any bill, statement, memorandum, or receipt issued or employed by the
30	person upon which the tax is required to be stated separately as provided in § 44-19-8, or willfully
31	failing to collect the tax from a customer, or willfully failing to remit any tax to the state which
32	was collected from a customer, or who refers or causes reference to be made to this tax in a form
33	or manner other than that required by this chapter, or failing to keep any records required by this
34	chapter, is, in addition to any other penalties in this chapter or elsewhere prescribed, guilty of a
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1	felony, punishment for which is a fine of not more than ten thousand dollars ($10,000) twenty-
2	five thousand dollars ($25,000), or imprisonment for one five years, or both.
3	44-19-42. Suppression of Sales Sales suppression devices – Definitions and
4	applicability.
5	(a) As used in this section:
6	(1)“Automated sales suppression device,” also known as a “zapper,” means a software
7	program, carried on a memory stick or removable compact disc, accessed through an Internet
8	link, or accessed through any other means, that falsifies transaction data, transaction reports, or
9	any other electronic records of electronic cash registers and other point-of-sale systems.
10	(2) “Electronic cash register” means a device that keeps a register, accounting, or
11	supporting documents through the means of an electronic device or computer system designed to
12	record transaction data for the purpose of computing, compiling, or processing retail sales
13	transaction data in any manner.
14	(3) “Phantom-ware” means a hidden programming option, whether preinstalled or
15	installed at a later time, embedded in the operating system of an electronic cash register or
16	hardwired into the electronic cash register that:
17	(i) Can be used to create a virtual second till; or
18	(ii) May eliminate or manipulate transaction records in any manner.
19	(4) “Remote data manipulation” means and includes, but is not limited to, sending,
20	transmitting, transporting, or receiving through any electronic means any and all transaction data
21	to a remote location, whether or not that location is within Rhode Island or outside the state or the
22	United States, for the purpose of manipulating and/or altering said data in any way, whether or
23	not the actual manipulation is performed manually or through automated means.
24	(4)(5) “Transaction data” includes items purchased by a customer, the price for each
25	item. A taxability determination for each item, a segregated tax amount for each of the taxed
26	items, the amount of cash, debit, or credit tendered, the net amount returned to the customer in
27	change, the date and time of the purchase, the name, address, and identification number of the
28	vendor, and the receipt or invoice number of the transaction.
29	(5)(6) “Transaction reports” means a report documenting, but not limited to, the sales,
30	the taxes collected, media totals, and discount voids at an electronic cash register that is
31	printed on cash register tape at the end of a day or shift, or a report documenting every action at
32	an electronic cash register that is stored electronically.
33	(b) A person shall not knowingly sell, purchase, install, transfer or possess an automated
34	sales suppression device or phantom-ware.
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1	(c) A person shall not knowingly suppress sales by engaging in remote data manipulation,
2	either as the sender or the receiver of the information.
3	(c)(d) Any person who violates subdivision (b) and/or (c) of this section shall be guilty of
4	a felony and, upon conviction, shall be subject to a fine not exceeding fifty-thousand dollars
5	($50,000) or imprisonment not exceeding five (5) years, or both.
6	(d)(e) In addition, a person who violates subdivision (b) and/or (c) of this section shall be
7	liable to the state for:
8	(1) All taxes, interest, and penalties due as the result of the person’s use of an automated
9	sales suppression device or phantom-ware and/or remote data manipulation; and
10	(2) All profits associated with the person’s sale of an automated sales suppression device
11	or phantom-ware and/or remote data manipulation.
12	(e)(f) An automated sales suppression device or phantom-ware and any device containing
13	such device or software shall be deemed contraband and shall be subject to seizure by the tax
14	administrator or by a law enforcement officer when directed to do so by the tax administrator.
15	(f)(g) Safe harbor. A person shall not be subject to prosecution under Rhode Island
16	general laws § 44-19-42, if by October 1, 2014, the person:
17	(1) Notifies the division of taxation of the person’s possession of an automated sales
18	suppression device;
19	(2) Provides any and all information requested by the division of taxation, including
20	transaction records, software specifications, encryption keys, passwords, and other data; and
21	(3) Corrects any underreported sales tax records and fully pays the division of taxation
22	any amounts previously owed.
23	(g)(h) This section shall not be construed to limit the person’s civil or criminal liability
24	under any other provision of the law.
25	SECTION 8. Sections 44-20-1, 44-20-3, 44-20-4.1, 44-20-8, 44-20-8.2, 44-20-13.2, 44-
26	20-15, 44-20-33, 44-20-35,44-20-40.1, 44-20-43, 44-20-45, and 44-20-51.1 of the General Laws
27	in Chapter 44-20 entitled “Cigarette Tax” are hereby amended to read as follows:
28	CHAPTER 44-20
29	CIGARETTE AND OTHER TOBACCO PRODUCTS TAX
30	44-20-1. Definitions.
31	Whenever used in this chapter, unless the context requires otherwise:
32	(1) "Administrator" means the tax administrator;
33	(2) "Cigarettes" means and includes any cigarettes suitable for smoking in cigarette form,
34	and each sheet of cigarette rolling paper, including but not limited to, paper made into a hollow
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1	cylinder or cone, made with paper or any other material, with or without a filter suitable for use in
2	making cigarettes;
3	(3) "Dealer" means any person whether located within or outside of this state, who sells
4	or distributes cigarettes and/or other tobacco products to a consumer in this state;
5	(4) "Distributor" means any person:
6	(A) Whether located within or outside of this state, other than a dealer, who sells or
7	distributes cigarettes and/or other tobacco products within or into this state. Such term shall not
8	include any cigarette or other tobacco product manufacturer, export warehouse proprietor, or
9	importer with a valid permit under 26 U.S.C. § 5712, if such person sells or distributes cigarettes
10	and/or other tobacco products in this state only to licensed distributors, or to an export warehouse
11	proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;
12	(B) Selling cigarettes and/or other tobacco products directly to consumers in this state by
13	means of at least twenty-five (25) cigarette vending machines;
14	(C) Engaged in this state in the business of manufacturing cigarettes and/or other tobacco
15	products or any person engaged in the business of selling cigarettes and/or other tobacco products
16	to dealers, or to other persons, for the purpose of resale only; provided, that seventy-five percent
17	(75%) of all cigarettes and/or other tobacco products sold by that person in this state are sold to
18	dealers or other persons for resale and selling cigarettes and/or other tobacco products directly to
19	at least forty (40) dealers or other persons for resale; or
20	(D) Maintaining one or more regular places of business in this state for that purpose;
21	provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products are
22	purchased directly from the manufacturer and selling cigarettes and/or other tobacco products
23	directly to at least forty (40) dealers or other persons for resale;
24	(5) "Importer" means any person who imports into the United States, either directly or
25	indirectly, a finished cigarette or other tobacco product for sale or distribution;
26	(6) "Licensed", when used with reference to a manufacturer, importer, distributor or
27	dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for
28	the type of business being engaged in. When the term "licensed" is used before a list of entities,
29	such as "licensed manufacturer, importer, wholesale dealer, or retailer dealer," such term shall be
30	deemed to apply to each entity in such list;
31	(7) "Manufacturer" means any person who manufactures, fabricates, assembles,
32	processes, or labels a finished cigarette and/or other tobacco products;
33	(8) “Other tobacco products” (OTP) means any cigars (excluding Little Cigars, as
34	defined in § 44-20.2-1, which are subject to cigarette tax), cheroots, stogies, smoking tobacco
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1	(including granulated, plug cut, crimp cut, ready rubbed and any other kinds and forms of tobacco
2	suitable for smoking in a otherwise), chewing tobacco (including Cavendish, twist, plug, scrap
3	and any other kinds and forms of tobacco suitable for chewing), any and all forms of hookah,
4	shisha and “mu’assel” tobacco, snuff, and shall include any other articles or products made of or
5	containing tobacco, in whole or in part, or any tobacco substitute, except cigarettes;
6	(8)(9) "Person" means any individual, including an employee or agent, firm, fiduciary,
7	partnership, corporation, trust, or association, however formed;
8	(10) “Pipe” means an apparatus made of any material used to burn or vaporize products
9	so that the smoke or vapors can be inhaled or ingested by the user;
10	(9)(11) "Place of business" means and includes any place location where cigarettes
11	and/or other tobacco products are sold, or where cigarettes are stored, or kept for the purpose of
12	sale or consumption, including, but not limited to, any storage room, attic, basement, garage or
13	other facility immediately adjacent to the location. It also includes any receptacle, hide, vessel,
14	vehicle, airplane, train, or vending machine;
15	(10)(12) "Sale" or "sell" includes and applies to means gifts, exchanges, and barter; of
16	cigarettes and/or other tobacco products. The act of holding, storing, or keeping cigarettes and/or
17	other tobacco products at a place of business for any purpose shall be presumed to be holding the
18	cigarettes and/or other tobacco products for sale. Furthermore, any sale of cigarettes and/or other
19	tobacco products by the servants, employees, or agents of the licensed dealer during business
20	hours at the place of business shall be presumed to be a sale by the licensee;
21	(11)(13) "Stamp" means the impression, device, stamp, label, or print manufactured,
22	printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as
23	evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are
24	intended for a sale or distribution in this state that is exempt from state tax under the provisions of
25	state law; and also includes impressions made by metering machines authorized to be used under
26	the provisions of this chapter.
27	44-20-3. Penalties for unlicensed business.
28	Any distributor or dealer who sells, offers for sale, or possesses with intent to sell,
29	cigarettes and/or any other tobacco products without a license as provided in § 44-20-2, shall be
30	fined in accordance with the provisions of and the penalties contained in § 11-9-13.15. shall be
31	guilty of a misdemeanor, and shall be fined not more than ten thousand dollars ($10,000) for each
32	offense, or be imprisoned for a term not to exceed one (1) year, or be punished by both a fine and
33	imprisonment.
34	44-20-4.1. License availability.
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1	(a) No license under this chapter may be granted, maintained or renewed if the applicant,
2	or any combination of persons owning directly or indirectly any interests in the applicant:
3	(1) Owes five hundred dollars ($500) or more in delinquent cigarette taxes;
4	(2) Is delinquent in any tax filings for one month or more;
5	(3) Had a license under this chapter revoked by the administrator within the past two (2)
6	years;
7	(4) Has been convicted of a crime relating to cigarettes stolen or counterfeit cigarettes
8	and/or other tobacco products;
9	(5) Is a cigarette manufacturer or importer that is neither: (i) a participating manufacturer
10	as defined in subjection II (jj) of the “Master Settlement Agreement” as defined in § 23-71-2; nor
11	(ii) in full compliance with chapter 20.2 of this title and § 23-71-3;
12	(6) Has imported, or caused to be imported, into the United States any cigarette or other
13	tobacco product in violation of 19 U.S.C. § 1681a; or
14	(7) Has imported, or caused to be imported, into the United States, or manufactured for
15	sale or distribution in the United States any cigarette that does not fully comply with the Federal
16	Cigarette Labeling and Advertising Act (15 U.S.C. § 1331, et. seq).
17	(b)(1) No person shall apply for a new license or permit (as defined in § 44-19-1) or
18	renewal of a license or permit, and no license or permit shall be issued or renewed for any
19	applicant, or any combination of persons owning directly or indirectly any interests in the
20	applicant person, unless all outstanding fines, fees or other charges relating to any license or
21	permit held by that person the applicant, or any combination of persons owning directly or
22	indirectly any interests in the applicant, as well as any other tax obligations of the applicant, or
23	any combination of persons owning directly or indirectly any interests in the applicant have been
24	paid.
25	(2) No license or permit shall be issued relating to a business at any specific location until
26	all prior licenses or permits relating to that business or to that location have been officially
27	terminated and all fines, fees or charges relating to the prior licenses license or permit have been
28	paid or otherwise resolved or the administrator has found that the person applying for the new
29	license or permit is not acting as an agent for the prior licensee or permit holder who is subject to
30	any such related fines, fees or charges that are still due. Evidence of such agency status includes,
31	but is not limited to, a direct familial relationship and/or an employment, contractual or other
32	formal financial or business relationship with the prior licensee or permit holder.
33	(3) No person shall apply for a new license or permit pertaining to a specific location in
34	order to evade payment of any fines, fees or other charges relating to a prior license or permit for
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1	that location.
2	(4) No new license or permit shall be issued for a business at a specific location for which
3	a license or permit already has been issued unless there is a bona fide, good faith change in
4	ownership of the business at that location.
5	(5) No license or permit shall be issued, renewed or maintained for any person, including
6	the owners of the business being licensed or having applied and received a permit, that has been
7	convicted of violating any criminal law relating to tobacco products, the payment of taxes or
8	fraud or has been ordered to pay civil fines of more than twenty-five thousand ($25,000) dollars
9	for violations of any civil law relating to tobacco products, the payment of taxes or fraud.
10	44-20-8. Suspension or revocation of license.
11	The tax administrator may suspend or revoke any license under this chapter for failure of
12	the licensee to comply with any provision of this chapter or with any provision of any other law
13	or ordinance relative to the sale or purchase of cigarettes or other tobacco products; and the. The
14	tax administrator may also suspend or revoke any license for failure of the licensee to comply
15	with any provision of chapter 19 of title 44 and chapter 13 of title 6, and, for the purpose of
16	determining whether the licensee is complying with any provision of chapter 13 of title 6, the tax
17	administrator and his or her authorized agents are empowered, in addition to authority conferred
18	by § 44-20-40, to examine the books, papers, and records of any licensee. The administrator shall
19	revoke the license of any person who would be ineligible to obtain a new or renew a license by
20	reason of any of the conditions for licensure provided in § 44-20-4.1. Any person aggrieved by
21	the suspension or revocation may apply to the administrator for a hearing as provided in § 44-20-
22	47, and may further appeal to the district court as provided in § 44-20-48.
23	44-20-8.2. Transactions only with licensed manufacturers, importers, distributors,
24	and dealers.
25	A manufacturer or importer may sell or distribute cigarettes and/or other tobacco
26	products to a person located or doing business within this state, only if such person is a licensed
27	importer or distributor. An importer may obtain cigarettes and/or other tobacco products only
28	from a licensed manufacturer. A distributor may sell or distribute cigarettes and/or other tobacco
29	products to a person located or doing business within this state, only if such person is a licensed
30	distributor or dealer. A distributor may obtain cigarettes and/or other tobacco products only from
31	a licensed manufacturer, importer, or distributor. A dealer may obtain cigarettes and/or other
32	tobacco products only from a licensed distributor.
33	44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, and
34	pipe tobacco products.
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1	(a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, and pipe
2	tobacco products sold, or or held for sale in the state by any person, the payment of the tax to be
3	accomplished according to a mechanism established by the administrator, division of taxation,
4	department of administration revenue. Any tobacco product on which the proper amount of tax
5	provided for in this chapter has been paid, payment being evidenced by a stamp, is not subject to
6	a further tax under this chapter. The tax imposed by this section shall be as follows:
7	(1) At the rate of eighty percent (80%) of the wholesale cost of other tobacco products,
8	cigars, pipe tobacco products and smokeless tobacco other than snuff.
9	(2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of
10	cigars, the tax shall not exceed fifty cents ($.50) for each cigar.
11	(3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like
12	rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net
13	weight as listed by the manufacturer, provided, however, that any product listed by the
14	manufacturer as having a net weight of less than 1.2 ounces shall be taxed as if the product has a
15	net weight of 1.2 ounces.
16	(b) Any dealer having in his or her possession any tobacco, cigars, and pipe tobacco
17	products with respect to the storage or use of which a tax is imposed by this section shall, within
18	five (5) days after coming into possession of the tobacco, cigars, and pipe tobacco in this state,
19	file a return with the tax administrator in a form prescribed by the tax administrator. The return
20	shall be accompanied by a payment of the amount of the tax shown on the form to be due.
21	Records required under this section shall be preserved on the premises described in the relevant
22	license in such a manner as to ensure permanency and accessibility for inspection at reasonable
23	hours by authorized personnel of the administrator.
24	(c)(b) The proceeds collected are paid into the general fund.
25	44-20-15. Confiscation of contraband cigarettes, other tobacco products, and other
26	property.
27	(a) All cigarettes and other tobacco products which are held for sale or distribution within
28	the borders of this state in violation of the requirements of this chapter are declared to be
29	contraband goods and may be seized by the tax administrator or his or her agents, or employees,
30	or by any sheriff or his or her deputy or any police officer when directed by the tax administrator
31	to do so, without a warrant. All cigarettes contraband goods seized by the state under this chapter
32	shall be destroyed.
33	(b) All fixtures, equipment, and all other materials and personal property on the premises
34	of any distributor or dealer who, with the intent to defraud the state, fails to keep or make any
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1	record, return, report, or inventory; keeps or makes any false or fraudulent record, return, report,
2	or inventory required by this chapter; refuses to pay any tax imposed by this chapter; or attempts
3	in any manner to evade or defeat the requirements of this chapter shall be forfeited to the state.
4	44-20-33. Sale of contraband unstamped cigarettes or contraband other tobacco
5	products prohibited.
6	No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or
7	possess with intent to sell any contraband other tobacco products or contraband cigarettes, the
8	packages or boxes containing of which do not bear stamps evidencing the payment of the tax
9	imposed by this chapter.
10	44-20-35. Penalties for violations as to unstamped contraband cigarettes or
11	contraband other tobacco products.
12	(a) Any person who violates any provision of §§ 44-20-33 and 44-20-34 shall be fined
13	or imprisoned, or both fined and imprisoned, as follows:
14	(1) For a first offense in a twenty-four-month (24) period, fined not more than one
15	thousand dollars ($1,000), or not more than five (5) ten (10) times the retail value of the cigarettes
16	contraband cigarettes and/or contraband other tobacco products involved, whichever is greater or
17	be imprisoned not more than one (1) year, or be both fined and imprisoned;
18	(2) For a second or subsequent offense in a twenty-four-month (24) period, fined not
19	more than five thousand dollars ($5,000) or not more than twenty-five (25) times the retail value
20	of the cigarettes contraband cigarettes and/or contraband other tobacco products involved,
21	whichever is greater, or be imprisoned not more than three (3) years, or be both fined and
22	imprisoned.
23	(b) When determining the amount of a fine sought or imposed under this section,
24	evidence of mitigating factors, including history, severity, and intent shall be considered.
25	44-20-40.1. Inspections.
26	(a) The administrator or his or her duly authorized agent shall have authority to enter and
27	inspect, without a warrant during normal business hours, and with a warrant during nonbusiness
28	hours, the facilities and records of any manufacturer, importer, distributor or dealer.
29	(b) In any case where the administrator or his or her duly authorized agent, or any police
30	officer
31	of this state, has knowledge or reasonable grounds to believe that any vehicle is
32	transporting cigarettes or other tobacco products in violation of this chapter, the administrator,
33	such agent, or such police officer, is authorized to stop such vehicle and to inspect the same for
34	contraband cigarettes or other tobacco products.
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1	44-20-43. Violations as to reports and records.
2	Any person who fails to submit the reports required in this chapter by the tax
3	administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who
4	refuses to permit the tax administrator or his or her authorized agent to examine any books,
5	records, papers, or stocks of cigarettes or other tobacco products as provided in this chapter, or
6	who refuses to supply the tax administrator with any other information which the tax
7	administrator requests for the reasonable and proper enforcement of the provisions of this chapter,
8	shall be guilty of a misdemeanor punishable by imprisonment up to one (1) year, or a fine fined
9	of not more than five thousand dollars ($5,000), or both, for the first offense, and for each
10	subsequent offense, shall be fined not more than ten thousand dollars ($10,000), or be imprisoned
11	not more than five (5) years, or be both fined and imprisoned.
12	44-20-45. Importation of cigarettes and/or other tobacco products with intent to
13	evade tax.
14	Any person, firm, corporation, club, or association of persons who or that orders any
15	cigarettes and/or other tobacco products for another or pools orders for cigarettes and/or other
16	tobacco products from any persons or conspires with others for pooling orders, or receives in this
17	state any shipment of unstamped contraband cigarettes and/or contraband other tobacco products
18	on which the tax imposed by this chapter has not been paid, for the purpose and intention of
19	violating the provisions of this chapter or to avoid payment of the tax imposed in this chapter, is
20	guilty of a felony and shall be fined one hundred thousand dollars ($100,000) or five (5) times
21	the retail value of the cigarettes involved, whichever is greater, or imprisoned not more than
22	fifteen (15) years, or both.
23	44-20-51.1. Civil Penalties.
24	(a) Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her
25	by this chapter, or does, or causes to be done, any of the things required by this chapter, or does
26	anything prohibited by this chapter, shall, in addition to any other penalty provided in this
27	chapter, be liable as follows:
28	(1) For a first offense in a twenty-four month (24) period, a penalty of not more than one
29	thousand dollars ($1,000), or five (5) ten (10) times the retail value of the cigarettes and/or other
30	tobacco products involved, whichever is greater, to be recovered, with costs of suit, in a civil
31	action; and
32	(2) For a second or subsequent offense in a twenty-four-month (24) period, a penalty of
33	not more than five thousand dollars ($5,000), or not more than twenty-five (25) times the retail
34	value of the cigarettes and/or other tobacco products involved, whichever is greater, to be
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1	recovered, with costs of suit, in a civil action.
2	(b) Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or
3	regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty
4	of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid,
5	whichever is greater.
6	(c) When determining the amount of a penalty sought or imposed under this section,
7	evidence of mitigating or aggravating factors, including history, severity, and intent, shall be
8	considered.
9	SECTION 9. This article shall take effect as of July 1, 2017, except for sections 2 and 3
10	which take effect as of August 1, 2017.
11	ARTICLE 9
12	RELATING REMOTE SELLERS SALES TAX COLLECTION
13	SECTION 1. Title 44 of the general laws entitled "Taxation" is hereby amended by
14	adding thereto the following chapter:
15	CHAPTER 70
16	REMOTE SELLER SALES TAX COLLECTION ACT
17	44-70-1. Legislative findings.
18	The general assembly finds and declares as follows:
19	(1) The general assembly recognizes that the commerce clause prohibits states from
20	imposing an undue burden on interstate commerce.
21	(2) The general assembly finds that, due to the ready availability of sales and use tax
22	collection software and Rhode Island’s status as a signatory to the Streamlined Sales and Use Tax
23	agreement under which there is an existing compliance infrastructure in place to facilitate the
24	collection and remittance of sales tax by remote sellers, it is no longer an undue burden for
25	remote sellers to accurately compute, collect and remit their sales and use tax obligations to
26	Rhode Island.
27	(3) The general assembly further finds that there has been an exponential expansion of
28	online commerce and related technology, and given that technology, it would not be an undue
29	burden for remote sellers to collect and remit sales and use tax.
30	(4) The general assembly further finds the sales and use tax system established under
31	Rhode Island law does not pose an undue burden on remote sellers and provides sufficient
32	simplification to warrant the collection and remittance of sales and use taxes that are due and
33	owing to Rhode Island by remote sellers.
34	44-70-2. Definitions.
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1	For the purposes of this chapter:
2	(1) “Covered entity” means remote seller, marketplace provider, or referrer that meets
3	the criteria described § 44-70-3.
4	(2) “Division of taxation” means the Rhode Island department of revenue, division of
5	taxation. The division may also be referred to in this chapter as the “division of taxation,” “tax
6	division”, or “division”.
7	(3) “Marketplace provider” means any person or persons that facilitates a sale by a
8	retailer. For purposes of this chapter, a marketplace provider facilitates a retail sale when the
9	marketplace provider both:
10	(A) Lists or advertises for purchase tangible personal property or services in any forum,
11	including a catalog or internet website; and
12	(B) Either directly or indirectly through agreements or arrangements with third parties,
13	collects payments from the purchaser and transmits those payments to a marketplace seller. A
14	person or persons may be a marketplace provider regardless of whether they deduct any fees from
15	the transaction. The division may define in regulation circumstances under which a marketplace
16	provider shall be deemed to facilitate a retail sale.
17	(4) “Marketplace seller” means a person, persons or retailer that has any sales facilitated
18	by a marketplace provider.
19	(5) “Person” means person as defined in section § 44-18-6 of the general laws.
20	(6) “Referrer” means every person who:
21	(A) Contracts or otherwise agrees with a retailer to list for sale for a price one or more
22	items of tangible personal property or services in any forum, including a catalog or internet
23	website; and
24	(B) Receives a fee, commission, or other consideration from a retailer for the listing; and
25	(C) Transfers, via telephone, internet link, or otherwise, a purchaser to the retailer or the
26	retailer’s employee, affiliate, or website to complete a purchase; and
27	(D) Does not collect receipts from the purchaser for the transaction.
28	(7) “Related” means:
29	(A) A person or persons has a relationship with the remote seller within the meaning of
30	the internal revenue code of 1986 as amended; or
31	(B) A person or persons have one or more ownership relationships and such relationships
32	were designed with a principal purpose of avoiding the application of this section.
33	(8) “Remote seller” means any person or persons who does not have physical presence in
34	this state and meets at least one of the criteria below, regardless of whether or not the activity is
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1	related to the sale of tangible personal property or taxable services:
2	(A) Who is currently selling, leasing, or delivering in this state, or is participating in any
3	activity in this state in connection with the selling, leasing, or delivering in this state, of tangible
4	personal property and/or taxable services for use, storage, distribution, or consumption within this
5	state. This includes, but shall not be limited to, the following acts or methods of transacting
6	business on a regular or systematic basis:
7	(i) Engaging in, either directly or indirectly through a marketplace provider, referrer, or
8	other third party, direct response marketing targeted at purchasers or potential purchasers in this
9	state. For purposes of this subsection, “direct response marketing” includes, but is not
10	limited to, sending, transmitting or broadcasting of flyers, newsletters, telephone calls, targeted
11	electronic mail, text messages, social media messages, targeted mailings; collecting, analyzing
12	and utilizing individual data on purchasers or potential purchasers in this state; using
13	information or software, including cached files, cached software, or ‘cookies’ or other data
14	tracking tools, that are stored on property in or distributed within this state; or conducting any
15	other actions that use persons, tangible property, intangible property, digital files or information,
16	or software in this state in an effort to enhance the probability that a person’s contacts with a
17	purchaser in this state will result in a sale to that purchaser.
18	(ii) Entering into one or more agreements under which a person or persons that have
19	physical presence in this state directly or indirectly refer potential purchasers of products to the
20	remote seller for a commission or other consideration, whether by an internet-based link or an
21	internet web site or otherwise.
22	An agreement under which a remote seller purchases advertisements from a person or
23	persons in this state, to be delivered on television, radio, in print, on the internet, or by any other
24	medium, is not an agreement described in this subsection (ii), unless the advertisement revenue
25	paid to the person or persons in this state consists of commissions or other consideration that is
26	based in whole or in part upon sales of products; or
27	(B) Whose sales process includes listing products for sale, soliciting, branding products,
28	selling products, processing orders, fulfilling orders, providing customer service or accepting or
29	assisting with returns or exchanges occurring in this state, regardless of whether that part of the
30	process has been subcontracted to an affiliate or third party. The sale process does not include
31	shipping via a common carrier; or
32	(C) Who offers its products for sale through one or more marketplace providers that have
33	physical presence in this state; or
34	(D) Who is related to a person that has physical presence in this state, and such related
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1	person:
2	(i) Sells under the same or a similar business name tangible personal property or taxable
3	services similar to that sold by the person against whom the presumption is asserted; or
4	(ii) Maintains an office, distribution facility, salesroom, warehouse, storage place, or
5	other similar place of business in this state to facilitate the delivery of tangible personal property
6	or taxable services sold by the person against whom the presumption is asserted to such person’s
7	in-state purchasers; or
8	(iii) Uses, with consent or knowledge of the person against whom the presumption is
9	asserted, trademarks, service marks, or trade names in this state that are the same or substantially
10	similar to those used by the person against whom the presumption is asserted; or
11	(iv) Delivers (except for delivery by common carrier for which the purchaser is charged
12	not more than the basic charge for shipping and handling), installs, or assembles tangible personal
13	property in this state, or performs maintenance or repair services on tangible personal property in
14	this state, which tangible personal property is sold to in-state purchasers by the person against
15	whom the presumption is asserted; or
16	(v) Facilitates the delivery of tangible personal property to in-state purchasers of the
17	person against whom the presumption is asserted by allowing such purchasers to pick up tangible
18	personal property sold by such person at an office, distribution facility, salesroom, warehouse,
19	storage place, or other similar place of business maintained in this state; or
20	(vi) Shares management, business systems, business practices, or employees with the
21	person against whom the presumption is asserted, or engages in intercompany transactions with
22	the person against whom the presumption is asserted related to the activities that establish or
23	maintain the market in this state of the person against whom the presumption is asserted.
24	(9) A "retail sale" or "sale at retail" means any retail sale or sale at retail as defined in §
25	44-18-8 of the general laws.
26	(10) A “retailer” means retailer as defined in section § 44-18-15 of the general laws.
27	(11) “State” means the State of Rhode Island and Providence Plantation.(5) “Person”
28	means person as defined in section § 44-18-6 of the general laws.
29	(12) “Streamline agreement” means the Streamlined Sales and Use Tax Agreement as
30	referenced in § 44-18.1 et seq of the general laws.
31	44-70-3. Requirements for remote sellers, marketplace providers, and referrers.
32	(A) Except as otherwise provided below in subsection (B)(4), beginning on January 1,
33	2018 and for any tax year thereafter, if a remote seller, marketplace provider, or referrer meets
34	either of the following criteria then it shall comply with the requirements in subsection (B):
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1	(1) The gross revenue of the remote seller, marketplace provider, or referrer from the sale
2	of tangible personal property, products delivered electronically, and services delivered into this
3	state equals or exceeds one hundred thousand dollars ($100,000) in the immediately preceding
4	calendar year; or
5	(2) The remote seller, marketplace provider, or referrer sold tangible personal property,
6	products delivered electronically, or services for delivery into this state in two hundred (200) or
7	more separate transactions in the immediately preceding calendar year.
8	(B) A covered entity shall register for a permit to make sales at retail and collect and
9	remit sales and use tax on all taxable sales into the state or, failing that, do each of the following:
10	(1) Post a conspicuous notice on its website that informs Rhode Island purchasers that
11	sales or use tax is due on certain purchases made from the covered entity and that this state
12	requires the purchaser to file a sale or use tax return; and
13	(2) At the time of purchase, notify Rhode Island purchasers that sales or use tax is due on
14	taxable purchases made from the covered entity and that the state of Rhode Island requires the
15	purchaser to file a sale or use tax return; and
16	(3) Subsequent to and within 48 hours of the time of purchase, notify Rhode Island
17	purchasers by email that sales or use tax is due on taxable purchases made from the covered
18	entity and that this state requires the purchaser to file a sale or use tax return after each taxable
19	sale is completed; and
20	(4) Send notification to all Rhode Island purchasers who have cumulative annual taxable
21	purchases from the covered entity totaling $100 or more for the prior calendar year. The
22	notification shall be sent by January 31 of each year, including January 31, 2018 for purchases
23	made in calendar year 2017, showing the total amount paid by the purchaser for purchases
24	delivered into this state made from the covered entity in the previous calendar year and such other
25	information as the division may require by rule and regulation. Such notification shall include, if
26	available, the dates of purchases, the dollar amount of each purchase, and the category or type of
27	the purchase, including, if known by the covered entity, whether the purchase is exempt or not
28	exempt from taxation in Rhode Island. The notification shall state that the state of Rhode Island
29	requires a sales or use tax return to be filed and sales or use tax to be paid on certain categories or
30	types of purchases made by the purchaser from the covered entity. The notification shall be sent
31	separately to all Rhode Island purchasers by first-class mail and shall not be included with any
32	other shipments or mailings. The notification shall include the words “important tax document
33	enclosed” on the exterior of the mailing. The notification shall include the name of the covered
34	entity.
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1	(C) A referrer subject to the provisions of § 44-70-3(B) that receives more than $10,000
2	from fees paid by retailers during the previous calendar year is also required to provide notice to
3	retailers that the retailer’s sales may be subject to sales and use tax. This notice is not required,
4	however, if (i) the retailer has previously provided a copy of the retailer’s permit to make sales at
5	retail in this state to the referrer or (ii) if the referrer is a covered entity that collects and remits
6	sales and use tax.
7	44-70-4. Exceptions for marketplace providers and referrers.
8	(A) Notwithstanding the provisions of § 44-70-3 of this chapter, no marketplace provider
9	or referrer is required to comply with the provisions of § 44-70-3(B) for any sale facilitated for a
10	marketplace seller or retailer that has provided a copy of its retailer’s sales permit to make sales at
11	retail in this state to the marketplace provider or referrer before the marketplace provider or
12	referrer facilitates that sale.
13	(B) A marketplace provider or referrer is relieved of any liability under this chapter for
14	failure to comply with the provisions of § 44-70-3 if the marketplace provider or referrer can
15	demonstrate (i) that the failure to comply was due to incorrect information given to the
16	marketplace provider or referrer by the marketplace seller or retailer and (ii) that the marketplace
17	provider or referrer and marketplace seller or retailer are not related.
18	(C) Nothing in this section shall be construed to interfere with the ability of a
19	marketplace provider or referrer and a marketplace seller or retailer to enter into agreements with
20	each other regarding fulfillment of the requirements of this chapter.
21	44-70-5. Penalties.
22	Any remote seller, marketplace provider or referrer that fails to provide the notices
23	described in § 44-70-3 and register for a permit to make sales at retail and collect and remit sales
24	and use tax on all taxable sales into this state shall be subject to a penalty of five dollars for each
25	such failure, but not less than a total penalty of $20,000 per calendar year. This penalty shall be in
26	addition to any other applicable penalties under title 44 of the general laws.
27	44-70-6. Other obligations.
28	(A) Nothing in this section affects the obligation of any purchaser from this state to remit
29	use tax as to any applicable transaction in which the seller or covered entity does not collect and
30	remit an offsetting sales tax.
31	(B) Nothing in this chapter may be construed as relieving any business having substantial
32	nexus with this state from its sales and use tax collection obligations to this state under applicable
33	law.
34	(C) In the event that any section of this chapter is later determined to be unlawful, no
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1	remote seller, marketplace provider, or referrer who has remitted sales and use tax under this
2	chapter shall be liable to a purchaser who claims that the sales tax should not have been collected.
3	44-70-7. Rules and regulations - forms.
4	The tax administrator may promulgate rules and regulations, not inconsistent with law,
5	to carry into effect the provisions of this chapter.
6	44-70-8. Enforcement.
7	(A) General. The tax administrator shall administer and enforce this chapter and is
8	authorized to make any rules and regulations, and to require any facts and information to be
9	reported, that he or she may deem necessary to enforce the tax. The provisions of chapter 1 of this
10	title relating to the tax administrator shall be applicable to this chapter.
11	(B) Examination of books and witnesses. The tax administrator, for the purpose of
12	ascertaining the correctness of any filing or notice or for the purpose of confirming the terms of
13	this chapter shall have the power to examine or to cause to have examined, by any agent or
14	representative designated by the tax administrator for that purpose, any books, papers, records, or
15	memoranda bearing upon the matters required to be included in the return, and may require the
16	attendance of the person rendering the return or any officer or employee of the person, or the
17	attendance of any other person having knowledge in the premises, and may take testimony and
18	require proof material for its information, with power to administer oaths to the person or
19	persons.
20	44-70-9. Appeal.
21	If the tax administrator issues one or more final determinations hereunder any appeal may
22	be made pursuant to the provisions of chapter 19 of title 44 of the general laws.
23	44-70-10. Severability.
24	If any provision of this chapter or the application thereof is held invalid, such invalidity
25	shall not affect the provisions or applications of this chapter which can be given effect without the
26	invalid provisions or applications.
27	SECTION 2. Unless otherwise specified herein, this article shall take effect upon
28	passage.
29	ARTICLE 10
30	RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2017
31	SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained
32	in this act, the following general revenue amounts are hereby appropriated out of any money in
33	the treasury not otherwise appropriated to be expended during the fiscal year ending June 30,
34	2017. The amounts identified for federal funds and restricted receipts shall be made available
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1	pursuant to section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws. For the
2	purposes and functions hereinafter mentioned, the state controller is hereby authorized and
3	directed to draw his or her orders upon the general treasurer for the payment of such sums or such
4	portions thereof as may be required from time to time upon receipt by him or her of properly
5	authenticated vouchers.
6	FY 2017 FY 2017 FY 2017
7	Enacted Change Final
8	Administration
9	Central Management
10	General Revenue 2,660,785 175,753 2,836,538
11	Total - Central Management 2,660,785 175,753 2,836,538
12	Legal Services
13	General Revenues 2,185,988 (52,253) 2,133,735
14	Total – Legal Services 2,185,988 (52,253) 2,133,735
15	Accounts and Control
16	General Revenue 4,147,433 (48,027) 4,099,406
17	Total - Accounts and Control 4,147,433 (48,027) 4,099,406
18	Office of Management and Budget
19	General Revenue 8,535,107 434,728 8,969,835
20	Restricted Receipts 355,000 109,647 464,647
21	Other Funds 1,381,095 123,696 1,504,791
22	Total – Office of Management and Budget 10,271,202 668,071 9,434,482
23	Purchasing
24	General Revenue 2,860,772 153,137 3,013,859
25	Other Funds 232,640 46,420 279,060
26	Total – Purchasing 3,093,362 199,557 3,292,919
27	Human Resources
28	General Revenue 7,783,906 193,340 7,977,246
29	Federal Funds 784,618 260,226 1,044,844
30	Restricted Receipts 487,070 131,176 624,246
31	Other Funds 1,486,706 96,829 1,583,535
32	Total - Human Resources 10,542,300 687,571 11,229,871
33	Personnel Appeal Board
34	Total – Personnel Appeal Board 133,419 11,833 145,252
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1	Information Technology
2	General Revenues 21,840,562 (23,641) 21,816,921
3	Federal Funds 6,778,053 69,098 6,847,151
4	Restricted Receipts 9,903,237 6,304,893 16,208,130
5	Other Funds 2,771,449 (50,812) 2,720,637
6	Total – Information Technology 41,293,301 6,299,538 47,592,839
7	Library and Information Services
8	General Revenue 1,342,819 (1,190) 1,341,629
9	Federal Funds 1,200,253 15,500 1,215,753
10	Restricted Receipts 28 5,472 5,500
11	Total - Library and Information Services 2,543,100 19,782 2,562,882
12	Planning
13	General Revenue 1,341,758 (217,387) 1,124,371
14	Federal Funds 1,014,317 (990,006) 24,311
15	Other Funds
16	Federal Highway – PL Systems Planning 2,974,750 52,460 3,027,210
17	Air Quality Modeling 24,000 0 24,000
18	Other Funds Total 2,998,750 52,460 3,051,210
19	Total - Planning 5,354,825 (1,154,933) 4,199,892
20	General
21	General Revenues 50,000 0 50,000
22	Provided that this amount be allocated to City Year for the Whole School Whole Child
23	Program, which provides individualized support to at-risk students.
24	Miscellaneous Grants/Payments
25	Torts - Courts/Awards 400,000 0 400,000
26	State Employees/Teachers Retiree Health 2,321,057 0 2,321,057
27	Resource Sharing and State 9,362,072 0 9,362,072
28	Library Construction Aid 2,223,220 (2,274) 2,220,946
29	RIPTA 900,000 0 900,000
30	Total General Revenues 15,256,349 (2,274) 15,254,075
31	Restricted Receipts 421,500 278,500 700,000
32	Rhode Island Capital Plan Funds
33	Statehouse Renovations 700,000 300,000 1,000,000
34	DoIT Enterprise Operations Center 500,000 30,000 530,000
	LC000840 - Page 171 of 319
1	Cranston Street Armory 1,500,000 0 1,500,000
2	Cannon Building 400,000 0 400,000
3	Pastore Center Rehab DOA Portion 6,783,000 117,000 6,900,000
4	Zambarano Building Rehabilitation 3,785,000 (610,000) 3,175,000
5	Pastore Strategic Plan 1,325,500 0 1,325,500
6	Old State House 500,000 (250,000) 250,000
7	State Office Building 1,670,000 35,000 1,705,000
8	Old Colony House 100,000 180,000 280,000
9	William Powers Building 1,000,000 0 1,000,000
10	Pastore Center Utility Systems Upgrade 2,878,000 (242,378) 2,635,622
11	Replacement of Fueling Tanks 400,000 (104,390) 295,610
12	Environmental Compliance 200,000 0 200,000
13	Big River Management Area 100,000 31,720 131,720
14	Washington County Government Center 500,000 (400,000) 100,000
15	Veterans Memorial Auditorium 245,000 210,147 455,147
16	Chapin Health Laboratory 2,362,000 (1,612,000) 750,000
17	Pastore Center Parking 900,000 (600,000) 300,000
18	Pastore Center Water Tanks and Pipes 380,000 160,000 540,000
19	RI Convention Center Authority 1,000,000 800,245 1,800,245
20	Dunkin Donuts Center 2,787,500 1,135,759 3,923,259
21	Pastore Power Plant Rehabilitation 640,000 160,000 800,000
22	Virks Building Renovations 14,505,000 627,512 15,132,512
23	Accessibility – Facility Renovations 1,000,000 0 1,000,000
24	Other Funds Total 46,161,000 (31,385) 46,129,615
25	Total – General 61,838,849 244,841 62,083,690
26	Debt Service Payments
27	General Revenue 130,523,966 (8,354,968) 122,168,998
28	Out of the general revenue appropriations for debt service, the General Treasurer is
29	authorized to make payments for the I-195 Redevelopment District Commission loan up to the
30	maximum debt service due in accordance with the loan agreement.
31	Federal Funds 2,235,315 (699) 2,234,616
32	Restricted Receipts 111,453 451 111,904
33	Other Funds
34	COPS - DLT Building – TDI 127,677 (23,619) 104,058
	LC000840 - Page 172 of 319
1	Transportation Debt Service 45,942,881 0 45,942,881
2	Investment Receipts – Bond Funds 100,000 0 100,000
3	Other Funds Total 46,170,558 (23,619) 46,146,939
4	Total - Debt Service Payments 179,041,292 (8,378,835) 170,662,457
5	Energy Resources
6	Federal Funds 397,040 174,360 571,400
7	Restricted Receipts 12,520,976 3,617,072 16,138,048
8	Total – Energy Resources 12,918,016 3,791,432 16,709,448
9	Rhode Island Health Benefits Exchange
10	General Revenues 2,625,841 0 2,625,841
11	Federal Funds 1,177,039 6,763,779 7,940,818
12	Restricted Receipts 8,580,747 (2,567,501) 6,013,246
13	Total - Rhode Island Health Benefits
14	Exchange 12,383,627 4,196,278 16,579,905
15	Construction Permitting, Approvals and Licensing
16	General Revenues 1,823,455 325,837 2,149,292
17	Restricted Receipts 1,440,520 (61,484) 1,379,036
18	Total – Construction Permitting, Approvals and
19	Licensing 3,263,975 264,353 3,528,328
20	Office of Diversity, Equity, and Opportunity
21	General Revenue 1,294,640 (70,043) 1,224,597
22	Other Funds 92,993 (42,869) 50,124
23	Total – Office of Diversity, Equity and
24	Opportunity 1,387,633 (112,912) 1,274,721
25	Capital Asset Management and Maintenance
26	General Revenue 34,693,189 (936,891) 33,756,298
27	Federal Funds 1,310,071 258,673 1,568,744
28	Restricted Receipts 443,424 204,910 648,334
29	Other Funds 4,412,913 (627,735) 3,785,178
30	Total – Capital Asset Management and
31	Maintenance 40,859,579 (1,101,043) 39,758,554
32	Personnel and Operational Reforms
33	General Revenue (1,966,421) 1,000,000 (966,421)
34	Total - Personnel and
	LC000840 - Page 173 of 319
1	Operational Reforms (1,966,421) 1,000,000 (966,421)
2	Grand Total – General Revenue 251,645,503 (8,590,073) 243,055,430
3	Grand Total – Administration 391,952,283 6,711,006 397,158,498
4	Business Regulation
5	Central Management
6	General Revenues 1,325,909 69,662 1,395,571
7	Total – Central Management 1,325,909 69,662 1,395,571
8	Banking Regulation
9	General Revenue 1,818,673 (56,869) 1.761,804
10	Restricted Receipts 50,000 0 50,000
11	Total–Banking Regulation 1,868,673 (56,869) 1,811,804
12	Securities Regulation
13	General Revenue 1,079,028 (104,132) 974,896
14	Restricted Receipts 15,000 0 15,000
15	Total - Securities Regulation 1,094,028 (104,132) 989,896
16	Insurance Regulation
17	General Revenue 3,993,494 (186,461) 3,807,033
18	Restricted Receipts 1,792,566 7,371 1,799,937
19	Total - Insurance Regulation 5,786,060 (179,090) 5,606,970
20	Office of the Health Insurance Commissioner
21	General Revenue 1,449,061 (1,485) 1,447,576
22	Federal Funds 1,100,710 910,686 2,011,396
23	Restricted Receipts 11,500 0 11,500
24	Total – Office of the Health Insurance
25	Commissioner 2,561,271 909,201 3,470,472
26	Board of Accountancy
27	General Revenue 6,000 0 6,000
28	Total – Board of Accountancy 6,000 0 6,000
29	Commercial Licensing, Racing & Athletics
30	General Revenues 638,207 233,895 872,102
31	Restricted Receipts 2,306,661 59,622 2,366,283
32	Total - Commercial Licensing, Racing &
33	Athletics 2,944,868 293,517 3,238,385
34	Boards for Design Professionals
	LC000840 - Page 174 of 319
1	General Revenue 273,080 83,166 356,246
2	Total – Boards for Design Professionals
3	Grand Total – General Revenues 10,583,452 37,776 10,621,228
4	Grand Total - Business Regulation 15,859,889 1,015,455 16,875,344
5	Executive Office of Commerce
6	Central Management
7	General Revenue 1,200,198 55,351 1,255,549
8	Housing and Community Development
9	General Revenue 617,205 (3,372) 613,833
10	Federal Funds 17,790,927 476,004 18,266,931
11	Restricted Receipts 4,750,000 0 4,750,000
12	Total – Housing and Community
13	Development 23,158,132 472,632 23,630,764
14	Quasi-Public Appropriations
15	General Revenue
16	Rhode Island Commerce Corporation 7,394,514 40,000 7,434,514
17	Airport Impact Aid 1,025,000 0 1,025,000
18	Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be
19	distributed to each airport serving more than 1,000,000 passengers based upon its percentage of
20	the total passengers served by all airports serving more than 1,000,000 passengers. Forty percent
21	(40%) of the first $1,000,000 shall be distributed based on the share of landings during the
22	calendar year 2016 at North Central Airport, Newport-Middletown Airport, Block Island Airport,
23	Quonset Airport, T.F. Green Airport and Westerly Airport, respectively. The Rhode Island
24	Commerce Corporation shall make an impact payment to the towns or cities in which the airport
25	is located based on this calculation. Each community upon which any parts of the above airports
26	are located shall receive at least $25,000.
27	STAC Research Alliance 1,150,000 0 1,150,000
28	Innovative Matching Grants/Internships 1,000,000 0 1,000,000
29	1-195 Redevelopment District Commission 761,000 69,116 830,116
30	Chafee Center at Bryant 376,200 0 376,200
31	RI College and University Research Collaborative 150,000 0 150,000
32	Other Funds
33	Rhode Island Capital Plan Funds
34	I-195 Redevelopment District Commission 300,000 51,683 351,683
	LC000840 - Page 175 of 319
1	Quonset Piers 1,000,000 (600,000) 400,000
2	Total- Quasi-Public Appropriations 13,156,714 (439,201) 12,717,513
3	Economic Development Initiatives Fund
4	General Revenue
5	Cluster Grants 500,000 0 500,000
6	Main Street RI Streetscape Improvements 1,000,000 0 1,000,000
7	Rebuild RI Tax Credit Fund 25,000,000 0 25,000,000
8	First Wave Closing Fund 7,000,000 1,500,000 8,500,000
9	P-Tech 1,200,000 0 1,200,000
10	Innovation Vouchers 1,500,000 0 1,500,000
11	Anchor Institution Tax Credits 700,000 0 700,000
12	Total- Economic Development Initiatives
13	Fund 36,900,000 1,500,000 38,400,000
14	Commerce Programs
15	General Revenue 5,000,000 (1,500,000) 3,500,000
16	Grand Total - Executive Office of
17	Commerce 79,415,044 88,782 79,503,826
18	Labor and Training
19	Central Management
20	General Revenue 120,134 13,993 134,127
21	Restricted Receipts 529,314 323,907 853,221
22	Other Funds
23	Rhode Island Capital Plan Funds
24	Center General Building Roof 0 156,620 156,620
25	Center General Asset Protection 1,905,000 (530,562) 1,374,438
26	Total Other Funds 1,905,000 (373,942) 1,531,058
27	Total - Central Management 2,554,448 (36,042) 2,518,406
28	Workforce Development Services
29	General Revenue 704,517 0 704,517
30	Federal Funds 24,121,921 8,601,561 32,723,482
31	Restricted Receipts 12,028,451 5,941,938 17,970,389
32	Other Funds 9,711 4,238,083 4,247,794
33	Total - Workforce Development Services 36,864,600 18,781,582 55,646,182
34	Workforce Regulation and Safety
	LC000840 - Page 176 of 319
1	General Revenue 2,825,411 (12,076) 2,813,335
2	Total – Workforce Regulation and Safety
3	Income Support
4	General Revenues 4,160,083 (76,815) 4,083,268
5	Federal Funds 14,329,659 2,133,806 16,463,465
6	Restricted Receipts 2,475,000 (168,394) 2,306,606
7	Other Funds
8	Temporary Disability Insurance Fund 186,953,678 5,794,454 192,748,132
9	Employment Security Fund 160,400,000 (1,480,000) 158,920,000
10	Other Funds 0 100,450 100,450
11	Other Funds Total 347,353,678 4,414,904 351,768,582
12	Total - Income Support 368,318,420 6,303,501 374,621,921
13	Injured Workers Services
14	Restricted Receipts 8,552,358 28,039 8,580,397
15	Total – Injured Workers Services 8,552,358 28,039 8,580,397
16	Labor Relations Board
17	General Revenue 402,491 2,058 404,549
18	Total - Labor Relations Board 402,491 2,058 404,549
19	Grand Total - General Revenues 8,212,636 (72,840) 8,139,796
20	Grand Total - Labor and Training 419,517,728 25,067,062 444,584,790
21	Department of Revenue
22	Director of Revenue
23	General Revenues 1,147,047 75,801 1,222,848
24	Total – Director of Revenue 1,147,047 75,801 1,222,848
25	Office of Revenue Analysis
26	General Revenue 806,836 908 807,744
27	Total – Office of Revenue Analysis 806,836 908 807,744
28	Lottery Division
29	Other Funds 362,367,224 7,723,824 370,091,048
30	RICAP – Lottery Building Renovations 0 119,112 119,112
31	Other Funds Total 362,367,224 7,842,936 370,210,160
32	Total – Lottery Division 362,367,224 7,842,936 370,210,160
33	Municipal Finance
34	General Revenue 3,053,887 43,447 3,097,334
	LC000840 - Page 177 of 319
1	Provided that $600,000 of the total is to support the operations of the City of Central
2	Falls.
3	Total – Municipal Finance
4	Taxation
5	General Revenues 20,294,329 80,003 20,374,332
6	Federal Funds 1,343,291 1,201,384 2,544,675
7	Restricted Receipts 930,267 86,330 1,016,597
8	Other Funds
9	Motor Fuel Tax Evasion 176,148 0 176,148
10	Temporary Disability Insurance 987,863 91,707 1,079,570
11	Other Funds Total 1,164,011 91,707 1,255,718
12	Total – Taxation 23,731,898 1,459,424 25,191,322
13	Registry of Motor Vehicles
14	General Revenues 23,668,390 (3,348,802) 20,319,588
15	All unexpended or unencumbered balances as of June 30, 2017 relating to license plate
16	reissuance are hereby re-appropriated to fiscal year 2018.
17	Federal Funds 802,076 1,028,462 1,830,538
18	Restricted Receipts 4,094,763 (1,000,000) 3,094,763
19	Total - Registry of Motor Vehicles 28,565,229 (3,320,340) 25,244,889
20	State Aid
21	General Revenue
22	Distressed Communities Relief Fund 12,384,458 0 12,384,458
23	Payment in Lieu of Tax Exempt Properties 41,979,103 0 41,979,103
24	Motor Vehicle Excise Tax Payments 10,000,000 0 10,000,000
25	Property Revaluation Program 559,901 0 559,901
26	Municipal Aid 0 137,340 137,340
27	General Revenue Total 64,923,462 137,340 65,060,802
28	Restricted Receipts 922,013 0 922,013
29	Total – State Aid 65,845,475 137,340 65,982,815
30	Grand Total – General Revenue 113,893,951 (3,011,303) 110,882,648
31	Grand Total – Revenue 485,517,596 6,239,516 491,757,112
32	Legislature
33	General Revenues 41,052,730 4,883,560 45,936,290
34	Restricted Receipts 1,696,572 (85,048) 1,611,524
	LC000840 - Page 178 of 319
1	Grand Total – Legislature 42,749,302 4,798,512 47,547,814
2	Lieutenant Governor
3	General Revenues 1,079,576 (26,288) 1,053,288
4	Grand Total - Lieutenant Governor 1,079,576 (26,288) 1,053,288
5	Secretary of State
6	Administration
7	General Revenue 3,539,219 (236,881) 3,302,338
8	Total – Administration 3,539,219 (236,881) 3,302,338
9	Corporations
10	General Revenue 2,192,627 (73,851) 2,118,776
11	Total – Corporations 2,192,627 (73,851) 2,118,776
12	State Archives
13	General Revenue 133,721 (46,571) 87,150
14	Restricted Receipts 516,519 (101,246) 415,273
15	Other Funds
16	Rhode Island Capital Plan Funds
17	State Archives 100,000 50,000 150,000
18	Total - State Archives 750,240 (97,817) 652,423
19	Elections & Civics
20	General Revenue 3,377,103 (119,347) 3,257,756
21	Federal Funds 0 22,859 22,859
22	Total – Elections & Civics 3,377,103 (96,488) 3,280,615
23	State Library
24	General Revenue 554,149 76,002 630,151
25	Total – State Library
26	Provided that $125,000 be allocated to support the Rhode Island Historical Society
27	pursuant to Rhode Island General Law, Section 29-2-1 and $18,000 be allocated to support the
28	Newport Historical Society, pursuant to Rhode Island General Law, Section 29-2-2.
29	Office of Public Information
30	General Revenue 484,232 40,471 524,703
31	Restricted Receipts 40,000 (15,000) 25,000
32	Total – Office of Public Information 524,232 25,471 549,703
33	Grand Total – General Revenues 10,281,051 (360,177) 9,920,874
34	Grand Total – Secretary of State 10,937,570 (403,564) 10,534,006
	LC000840 - Page 179 of 319
1	General Treasurer
2	Treasury
3	General Revenue 2,507,779 (12,304) 2,495,475
4	Federal Funds 328,594 (40,248) 288,346
5	Other Funds
6	Temporary Disability Insurance Fund 250,410 (25,872) 224,538
7	Tuition Savings Program 300,000 124,270 424,270
8	Transfers to Division of Higher Education Asst 0 8,000,000 8,000,000
9	Other Funds Total 550,410 8,098,398 8,648,808
10	Total – Treasury 3,386,783 8,045,846 11,432,629
11	State Retirement System
12	Restricted Receipts
13	Admin Expenses - State Retirement System 8,228,881 1,646,621 9,875,502
14	Retirement - Treasury Investment Operations 1,544,396 (230,449) 1,313,947
15	Defined Contribution – Administration 68,373 24,105 92,478
16	Total - State Retirement System 9,841,650 1,440,277 11,281,927
17	Unclaimed Property
18	Restricted Receipts 22,348,728 2,095,225 24,443,953
19	Total – Unclaimed Property 22,348,728 2,095,225 24,443,953
20	Crime Victim Compensation Program
21	General Revenue 228,452 9,117 237,569
22	Federal Funds 624,287 (6,825) 617,462
23	Restricted Receipts 1,130,533 2,824 1,133,357
24	Total - Crime Victim Compensation Program 1,983,272 5,116 1,988,388
25	Grand Total – General Revenues 2,736,231 (3,187) 2,733,044
26	Grand Total – General Treasurer 37,560,433 11,586,464 49,146,897
27	Board of Elections
28	General Revenue 1,982,707 85,969 2,068,676
29	Grand Total - Board of Elections 1,982,707 85,969 2,068,676
30	Rhode Island Ethics Commission
31	General Revenue 1,653,383 (21,773) 1,631,610
32	Grand Total - Rhode Island Ethics 1,653,383 (21,773) 1,631,610
33	Office of Governor
34	General Revenue 4,841,069 (7,587) 4,833,482
	LC000840 - Page 180 of 319
1	Contingency Fund 250,000 292,000 542,000
2	Grand Total – Office of Governor 5,091,069 284,413 5,375,482
3	Commission for Human Rights
4	General Revenue 1,258,128 (10,525) 1,247,603
5	Federal Funds 323,295 75,110 398,405
6	Grand Total - Commission for Human Rights 1,581,423 64,585 1,646,008
7	Public Utilities Commission
8	Federal Funds 104,669 23,331 128,000
9	Restricted Receipts 8,822,304 227,497 9,049,801
10	Grand Total - Public Utilities Commission 8,926,973 250,828 9,177,801
11	Office of Health and Human Services
12	Central Management
13	General Revenue 32,544,387 337,663 32,882,050
14	Federal Funds
15	Federal Funds 109,882,888 21,791,649 131,674,537
16	Federal Funds – Stimulus 100,085 (100,085) 0
17	Federal Funds Total 109,982,973 21,691,564 131,674,537
18	Restricted Receipts 3,914,402 2,285,690 6,200,092
19	Total – Central Management 146,441,762 24,314,917 170,756,679
20	Medical Assistance
21	General Revenue
22	Managed Care 294,797,721 103,087 294,900,808
23	Hospitals 94,223,146 3,681,845 97,904,991
24	Nursing Facilities 87,653,283 (693,183) 86,960,100
25	Home and Community Based Services 33,104,210 (5,394,890) 27,709,320
26	Other Services 45,710,484 10,184,859 55,895,343
27	Pharmacy 57,379,065 1,825,577 59,204,642
28	Rhody Health 291,574,716 (1,671,930) 289,902,786
29	General Revenue Total 904,442,625 8,035,365 912,477,990
30	Federal Funds
31	Managed Care 353,210,935 8,988,258 362,199,193
32	, Hospitals 107,062,817 (5,318,892) 101,743,925
33	Nursing Facilities 97,557,413 (7,517,512) 90,039,901
34	Home and Community Based Services 34,286,903 (5,596,222) 28,690,681
	LC000840 - Page 181 of 319
1	Other Services 429,645,177 67,316,480 496,961,657
2	Pharmacy (1,111,840) 263,253 (848,587)
3	Rhody Health 298,041,793 355,421 298,397,214
4	Special Education 19,000,000 0 19,000,000
5	Federal Funds Total 1,337,693,198 58,490,786 1,396,183,984
6	Restricted Receipts 9,615,000 0 9,615,000
7	Total - Medical Assistance 2,251,750,823 66,526,151 2,318,276,974
8	Grand Total – General Revenue 936,987,012 8,373,028 945,360,040
9	Grand Total – Office of Health and 2,398,192,585 90,841,068 2,489,033,653
10	Human Services
11	Children, Youth, and Families
12	Central Management
13	General Revenue 7,074,378 (162,307) 6,912,071
14	Federal Funds 2,808,145 (273,097) 2,535,048
15	Total - Central Management 9,882,523 (435,404) 9,447,119
16	General Revenue 5,004,800 142,692 5,147,492
17	Federal Funds 4,828,525 1,019,001 5,847,526
18	Other Funds
19	Rhode Island Capital Plan Funds
20	RICAP – NAFI Center 0 40,857 40,857
21	Various Repairs and Improvements to
22	Training School 250,000 233,816 483,816
23	Other Funds Total 250,000 274,673 524,673
24	Total - Children's Behavioral Health
25	Services 10,083,325 1,436,366 11,519,691
26	Juvenile Correctional Services
27	General Revenue 24,927,098 (1,747,245) 23,179,853
28	Federal Funds Total 281,367 (1,977) 279,390
29	Other Funds
30	Rhode Island Capital Plan Funds
31	Thomas C. Slater Training School
32	Maintenance Building 0 385,000 385,000
33	Generators-RITS 0 50,000 50,000
34	Other Funds Total
	LC000840 - Page 182 of 319
1	Total - Juvenile Correctional Services 25,208,465 (1,749,222) 23,459,243
2	Child Welfare
3	General Revenue 99,895,381 3,315,428 103,210,809
4	18 to 21 Year Olds 14,672,107 2,973,999 17,646,106
5	General Revenue 114,567,488 6,289,427 120,856,915
6	Federal Funds
7	Federal Funds 52,104,852 (2,889,085) 49,215,767
8	Federal Funds – Stimulus 386,594 (386,594) 0
9	Federal Funds Total 52,491,446 (3,275,679) 49,215,767
10	Restricted Receipts 3,466,576 (316,274) 3,150,302
11	Other Funds
12	Rhode Island Capital Plan Funds
13	Youth Group Homes - Fire Code Upgrades 590,000 (590,000) 0
14	Other Funds 590,000 (590,000) 0
15	Total - Child Welfare 171,115,510 (2,107,474) 173,222,984
16	Higher Education Incentive Grants
17	General Revenue
18	Total – Higher Education Incentive Grants 200,000 0 200,000
19	Grand Total – General Revenues 151,773,764 4,522,567 156,296,331
20	Grand Total - Children, Youth, and Families 216,489,823 (1,794,214) 218,284,037
21	Health
22	Central Management
23	General Revenue 0 100,000 100,000
24	Federal Funds 808,064 (40,501) 767,563
25	Restricted Receipts 4,043,053 (16,477) 4,026,576
26	Total - Central Management 4,851,117 (43,022) 4,894,139
27	Community Health and Equity
28	General Revenue 1,530,102 3,315 1,533,417
29	Federal Funds 74,019,207 (1,955,235) 72,063,972
30	Restricted Receipts 30,434,862 4,052,650 34,487,512
31	Total – Community Health and Equity 105,984,171 2,100,730 108,084,901
32	Environmental Health
33	General Revenue 5,169,143 (10,761) 5,158,382
34	Federal Funds 6,148,955 1,263,125 7,412,080
	LC000840 - Page 183 of 319
1	Restricted Receipts 386,415 (216,308) 170,107
2	Total - Environmental Health 11,704,513 1,036,056 12,740,569
3	Health Laboratories and Medical Examiner
4	General Revenue 10,028,498 215,450 10,243,948
5	Federal Funds 2,129,140 18,869 2,148,009
6	Total - Health Laboratories &
7	Medical Examiner 12,157,638 234,319 12,391,957
8	Customer Service
9	General Revenue 6,363,621 72,192 6,435,813
10	Federal Funds 3,491,908 772,327 4,264,235
11	Restricted Receipts 1,142,254 (34,521) 1,107,733
12	Total – Customer Service 10,997,783 809,998 11,807,781
13	Policy, Information and Communications
14	General Revenue 937,935 (279,707) 658,228
15	Federal Funds 1,629,319 336,348 1,965,667
16	Restricted Receipts 581,225 61,242 642,467
17	Total – Policy, Information
18	and Communications 3,148,479 117,883 3,266,362
19	Preparedness, Response, Infectious Disease & Emergency Services
20	General Revenue 1,902,523 (33,076) 1,869,447
21	Federal Funds 12,138,428 2,747,331 14,885,759
22	Total – Preparedness, Response, Infectious
23	Disease & Emergency Services 14,040,951 2,714,255 16,755,206
24	Grand Total – General Revenue 25,931,822 67,413 25,999,235
25	Grand Total – Health 162,884,652 7,056,263 169,940,915
26	Human Services
27	Central Management
28	General Revenue 4,852,023 (1,422,509) 3,429,514
29	Of this amount, $300,000 is to support the Domestic Violence Prevention Fund to
30	provide direct services through the Coalition Against Domestic Violence, $250,000 is to support
31	Project Reach activities provided by the RI Alliance of Boys and Girls Club, $217,000 is for
32	outreach and supportive services through Day One, $175,000 is for food collection and
33	distribution through the Rhode Island Community Food Bank, and $300,000 for services
34	provided to the homeless at Crossroads Rhode Island and $200,000 is to support the Institute for
	LC000840 - Page 184 of 319
1	the Study and Practice of Nonviolence’s Violence Reduction Strategy.
2	Community Action Fund 520,000 0 520,000
3	This amount shall be used to provide services to individuals and families through the nine
4	community action agencies.
5	Federal Funds 4,155,192 (216,316) 3,938,876
6	Restricted Receipts 520,844 468,207 989,051
7	Total - Central Management 9,528,059 (1,170,618) 8,357,441
8	Child Support Enforcement
9	General Revenue 3,314,623 (381,034) 2,933,589
10	Federal Funds 6,207,167 778,764 6,985,931
11	Total – Child Support Enforcement 9,521,790 397,730 9,919,520
12	Individual and Family Support
13	General Revenue 18,596,622 4,052,511 22,649,133
14	Federal Funds 83,381,849 19,476,985 102,858,834
15	Federal Funds – Stimulus 1,625,839 2,234,952 3,860,791
16	Federal Funds Total 85,007,688 21,711,937 106,719,625
17	Restricted Receipts 394,399 131,251 525,650
18	Other Funds
19	Rhode Island Capital Plan Fund
20	Blind Vending Facilities 165,000 0 165,000
21	Intermodal Surface Transportation Fund 4,428,478 0 4,428,478
22	Food Stamp Bonus Funding 500,000 (89,466) 410,534
23	Rhode Island Capital Plan Funds
24	Other Funds Total 5,093,478 (89,466) 5,004,012
25	Total - Individual and Family Support 109,092,187 25,806,233 134,898,420
26	Office of Veterans' Affairs
27	General Revenue 20,504,694 (30,564) 20,474,130
28	Support services through Veterans’ Organizations 200,000 0 200,000
29	Federal Funds 19,268,534 (1,181,690) 18,086,844
30	Restricted Receipts 676,499 1,132,526 1,809,025
31	Total - Veterans' Affairs 40,649,727 (79,728) 40,569,999
32	Health Care Eligibility
33	General Revenue 8,527,641 (1,533,227) 6,994,414
34	Federal Funds 10,650,014 (982,165) 9,667,849
	LC000840 - Page 185 of 319
1	Total - Health Care Eligibility 19,177,655 (2,515,392) 16,662,263
2	Supplemental Security Income Program
3	General Revenue 18,496,913 3,347 18,500,260
4	Total - Supplemental Security Income 18,496,913 3,347 18,500,260
5	Program
6	Rhode Island Works
7	General Revenue 14,747,241 (4,886,622) 9,860,619
8	Federal Funds 78,203,704 642,265 78,845,969
9	Total – Rhode Island Works 92,950,945 (4,244,357) 88,706,588
10	State Funded Programs
11	General Revenue 1,582,800 28,800 1,611,600
12	Of this appropriation, $210,000 shall be used for hardship contingency payments.
13	Federal Funds 282,085,000 (24,569) 282,060,431
14	Total - State Funded Programs 283,667,800 4,231 283,672,031
15	Elderly Affairs
16	General Revenue 5,477,200 (39,160) 5,438,040
17	Of this amount, $140,000 is to provide elder services, including respite, through the
18	Diocese of Providence, $40,000 for ombudsman services provided by the Alliance for Long Term
19	in accordance with RIGL 42-66.7 and $85,000 for security for housing for the elderly in
20	accordance with RIGL 42-66.1-3.
21	Senior Center Support 400,000 0 400,000
22	Elderly Nutrition 580,000 0 580,000
23	Of this amount, $530,000 is for Meals on Wheels.
24	RIPAE 75,229 (211) 75,018
25	Care and Safety of the Elderly 281,328 19,522 300,850
26	General Funds Total 6,533,729 (39,371) 6,494,358
27	Federal Funds 6,813,757 646,413 12,714,010
28	Restricted Receipts 120,693 370 121,063
29	Total – Elderly Affairs 19,002,047 327,384 19,329,431
30	Grand Total – General Revenues 97,636,314 4,488,697 93,147,617
31	Grand Total - Human Services 602,087,123 18,528,830 620,615,953
32	Behavioral Healthcare, Developmental Disabilities, and Hospitals
33	Central Management
34	General Revenue 1,097,743 545,280 1,643,023
	LC000840 - Page 186 of 319
1	Federal Funds 597,685 (597,685) 0
2	Total - Central Management 1,695,428 (52,405) 1,643,023
3	Hospital and Community System Support
4	General Revenue 1,474,964 575,071 2,050,035
5	Federal Funds 789,226 (789,226) 0
6	Restricted Receipts
7	Other Funds
8	Rhode Island Capital Plan Funds
9	Medical Center Rehabilitation 250,000 2,204 252,204
10	Community Facilities Fire Code 400,000 42,200 442,200
11	Other Funds Total 650,000 44,404 694,404
12	Total - Hospital and Community System
13	Support 2,914,190 (169,751) 2,744,439
14	Services for the Developmentally Disabled
15	General Revenue 119,651,536 2,363,931 122,015,467
16	Of this general revenue funding, $4.5 million shall be expended on private provider direct
17	support staff raises and associated payroll costs to include targeted increases associated with
18	performance-based contracting and system transformation incentives as authorized by the
19	Department of Behavioral Healthcare, Developmental Disabilities and Hospitals. Any increases
20	for direct support staff in residential or other community based settings must first receive the
21	approval of the Office of Management and Budget and the Executive Office of Health and
22	Human Services. Final approval of any funding re-design for services through the Division of
23	Developmental Disabilities is also subject to approval of the Executive Office and the Office of
24	Management and Budget.
25	Federal Funds 124,135,783 919,253 125,055,036
26	Restricted Receipts 1,755,100 117,460 1,872,560
27	Other Funds
28	Rhode Island Capital Plan Funds
29	DD Private Waiver 200,000 9,544 209,544
30	MR Community Facilities/Access to Ind. 500,000 0 500,000
31	RICAP – Regional Center Repair/Rehab 0 974,363 974,363
32	Other Funds Total 700,000 983,907 1,683,907
33	Total - Services for the Developmentally
34	Disabled 246,242,419 4,384,551 250,626,970
	LC000840 - Page 187 of 319
1	Behavioral Healthcare Services
2	General Revenue 2,015,777 2,202,627 4,218,404
3	Federal Funds 17,235,690 3,976,945 21,212,635
4	Of this federal funding, $900,000 shall be expended on the Municipal Substance Abuse
5	Task Forces and $128,000 shall be expended on NAMI of RI.
6	Restricted Receipts 100,000 0 100,000
7	Other Funds
8	Rhode Island Capital Plan Funds
9	MH Community Facilities Repair 200,000 0 200,000
10	MH Housing Development Thresholds 800,000 0 800,000
11	Substance Abuse Asset Protection 100,000 0 100,000
12	Other Funds Total 1,100,000 0 1,100,000
13	Total – Behavioral Healthcare Services 20,451,467 6,179,572 26,631,039
14	Hospital and Community Rehabilitative Services
15	General Revenue 48,944,219 2,850,759 51,794,978
16	Federal Funds 50,280,372 2,299,930 52,580,302
17	Restricted Receipts 6,580,724 (1,644,129) 4,936,595
18	Other Funds
19	Rhode Island Capital Plan Funds
20	Zambarano Buildings and Utilities 386,000 194,000 580,000
21	Hospital Consolidation 1,000,000 1,500,000 2,500,000
22	Eleanor Slater HVAC/Elevators 5,837,736 (315,706) 5,522,030
23	MR Community Facilities 1,000,000 159,429 1,159,429
24	Hospital Equipment 300,000 70,771 370,771
25	Other Funds Total 8,523,736 1,608,494 10,132,230
26	Total Hospital and Community
27	Rehabilitative Services 114,329,051 5,115,054 119,444,105
28	Grand Total – General Revenue 173,184,239 8,537,668 181,721,907
29	Grand Total – Behavioral Healthcare,
30	Developmental Disabilities, and Hospitals 385,332,555 15,457,021 401,089,576
31	Office of the Child Advocate
32	General Revenue 650,582 (15,041) 635,541
33	Federal Funds 145,000 (386) 144,614
34	Grand Total – Office of the Child Advocate 795,582 (15,427) 780,155
	LC000840 - Page 188 of 319
1	Commission on the Deaf and Hard of Hearing
2	General Revenue 477,746 (177,096) 460,650
3	Restricted Receipts 110,000 20,000 130,000
4	Grand Total – Com on Deaf and Hard of
5	Hearing 587,746 2,904 590,650
6	Governor's Commission on Disabilities
7	General Revenue 412,547 8,049 420,596
8	Federal Funds 228,750 69,314 298,064
9	Restricted Receipts 44,126 15,234 59,360
10	Grand Total - Governor's Commission on
11	Disabilities 685,423 92,597 778,020
12	Office of the Mental Health Advocate
13	General Revenue 542,009 7,264 549,273
14	Grand Total - Office of the Mental
15	Health Advocate 542,009 7,264 549,273
16	Elementary and Secondary Education
17	Administration of the Comprehensive Education Strategy
18	General Revenue 20,555,594 89,599 20,645,193
19	Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s
20	Hospital pursuant to Rhode Island General Law, Section 16-7-20 and that $245,000 be allocated
21	to support child opportunity zones through agreements with the department of elementary and
22	secondary education to strengthen education, health and social services for students and their
23	families as a strategy to accelerate student achievement.
24	Federal Funds
25	Federal Funds 202,791,134 (918,097) 201,873,037
26	Federal Funds – Stimulus 1,804,987 2,188,102 3,993,089
27	Federal Funds Total 204,596,121 1,270,005 205,866,126
28	Restricted Receipts
29	Restricted Receipts 1,264,259 0 1,264,259
30	HRIC Adult Education Grants 3,500,000 0 3,500,000
31	Restricted Receipts Total 4,764,259 0 4,764,259
32	Other Funds
33	Rhode Island Capital Plan Funds
34	State-Owned Warwick 350,000 0 350,000
	LC000840 - Page 189 of 319
1	State-Owned Woonsocket 1,950,000 0 1,950,000
2	Other Funds Total 2,300,000 0 2,300,000
3	Total – Administration of the Comprehensive
4	Education Strategy 232,215,974 1,359,604 233,575,578
5	Davies Career and Technical School
6	General Revenue 12,590,093 0 12,590,093
7	Federal Funds 1,379,112 75,891 1,455,003
8	Restricted Receipts 3,936,872 (4,200) 3,932,672
9	Other Funds
10	Rhode Island Capital Plan Funds
11	Davies HVAC 500,000 (1,192) 498,808
12	Davies Asset Protection 150,000 327,911 477,911
13	Other Funds Total 650,000 326,719 976,719
14	Total - Davies Career and Technical School 18,556,077 398,410 18,954,487
15	RI School for the Deaf
16	General Revenue 6,326,744 (67,533) 6,259,211
17	Federal Funds 254,320 0 254,320
18	Restricted Receipts 785,791 (8,000) 777,791
19	Other Funds
20	RI School for the Deaf
21	Transformation Grants 59,000 0 59,000
22	Other Funds Total 59,000 0 59,000
23	Total - RI School for the Deaf 7,425,855 (75,533) 7,350,322
24	Metropolitan Career and Technical School
25	General Revenue 9,342,007 0 9,342,007
26	Other Funds
27	Rhode Island Capital Plan Funds
28	MET Asset Protection 100,000 100,000 200,000
29	MET School HVAC 1,000,000 2,131,996 3,131,996
30	Other Funds Total 1,100,000 2,231,996 3,331,996
31	Total – Metropolitan Career and
32	Technical School 10,442,007 2,231,996 12,674,003
33	Education Aid
34	General Revenue 845,855,695 68,000 845,923,695
	LC000840 - Page 190 of 319
1	Restricted Receipts 20,700,072 155,254 20,855,326
2	Other Funds
3	Permanent School Fund Education Aid 600,000 0 600,000
4	Other Funds Total 600,000 0 600,000
5	Total – Education Aid 867,155,767 223,254 867,379,021
6	Central Falls School District
7	General Revenue 39,100,578 0 39,100,578
8	Total – Central Falls School District 39,100,578 0 39,100,578
9	School Construction Aid
10	General Revenue
11	School Housing Aid 70,907,110 0 70,907,110
12	School Building Authority Capital Fund 9,092,890 0 9,092,890
13	Total – School Construction Aid 80,000,000 0 80,000,000
14	Teachers' Retirement
15	General Revenue 99,076,582 0 99,076,582
16	Total – Teachers’ Retirement 99,076,582 0 99,076,582
17	Grand Total – General Revenue 1,112,847,293 90,066 1,112,937,359
18	Grand Total - Elementary and Secondary
19	Education 1,353,972,840 4,137,731 1,358,110,571
20	Public Higher Education
21	Office of Postsecondary Commissioner
22	General Revenue 6,298,407 53,475 6,351,882
23	Provided that $355,000 shall be allocated to Rhode Island Children’s Crusade pursuant to
24	Rhode Island General Law, Section 16-70-5 and that $30,000 shall be allocated to Best Buddies
25	Rhode Island to support its programs for children with developmental and intellectual disabilities.
26	Appropriations to the Office of Postsecondary Commissioner of seven hundred and fifty
27	thousand ($750,000) are to be used for the Westerly Higher Education and Industry Center.
28	Funds shall only be spent to secure a long-term lease of the facility.
29	Federal Funds
30	Federal Funds 9,445,218 2,381,253 11,826,471
31	WaytogoRI Portal 863,629 48,754 912,383
32	Guaranty Agency Operating Fund 4,000,000 0 4,000,000
33	Restricted Receipts 361,925 494,848 856,773
34	Other Funds
	LC000840 - Page 191 of 319
1	Tuition Savings Program – Dual Enrollment 1,300,000 0 1,300,000
2	Tuitions Savings Program – Scholarship/Grants 6,095,000 0 6,095,000
3	Nursing Education Center - Operating 0 1,106,666 1,106,666
4	Westerly Campus 2,000,000 0 2,000,000
5	Total – Office of the
6	Postsecondary Commissioner 30,364,179 4,084,996 34,449,175
7	University of Rhode Island
8	General Revenue
9	General Revenue 75,616,226 0 75,616,226
10	Provided that in order to leverage federal funding and support economic development,
11	$250,000 shall be allocated to the Small Business Development Center and $250,000 shall be
12	allocated to the Polaris Manufacturing Extension Program, and that $50,000 shall be allocated to
13	Special Olympics Rhode Island to support its mission of providing athletic opportunities for
14	individuals with intellectual and developmental disabilities.
15	The University shall not decrease internal student financial aid in the 2016 – 2017
16	academic year below the level of the 2015 – 2016 academic year. The President of the institution
17	shall report, prior to the commencement of the 2016-2017 academic year, to the chair of the
18	Council of Postsecondary Education that such tuition charges and student aid levels have been
19	achieved at the start of the FY 2017 as prescribed above.
20	Debt Service 13,182,679 2,303,038 15,485,717
21	RI State Forensics Lab 1,071,393 0 1,071,393
22	General Revenue Total 89,870,298 2,303,038 92,173,336
23	Other Funds
24	University and College Funds 649,629,440 (18,701,995) 630,927,445
25	Debt – Dining Services 1,106,597 0 1,106,597
26	Debt – Education and General 3,786,661 (189,456) 3,597,205
27	Debt – Health Services 146,167 0 146,167
28	Debt – Housing Loan Funds 11,751,883 (1,147,285) 10,604,598
29	Debt – Memorial Union 319,976 0 319,976
30	Debt – Ryan Center 2,789,719 0 2,789,719
31	Debt – Alton Jones Services 102,946 0 102,946
32	Debt - Parking Authority 1,042,907 0 1,042,907
33	Debt – Sponsored Research 85,105 (192) 84,913
34	Debt – URI Energy Conservation 2,021,187 (51,187) 1,970,000
	LC000840 - Page 192 of 319
1	Debt Service – Op Transfers 810,170 (205,088) 605,082
2	Debt – URI Energy Conservation 2,021,187 (51,187) 1,970,000
3	Rhode Island Capital Asset Plan Funds
4	Asset Protection 13,556,000 0 13,556,000
5	URI Shephard Building Upgrades 95,000 (95,000) 0
6	URI/RIC Nursing Education Center 200,000 101,859 301,859
7	White Hall Renovations 0 419,130 419,130
8	URI Electrical Substation 0 1,382,650 1,382,650
9	URI Biotech Center 0 156,439 156,439
10	URI Fire Safety 0 2,552,968 2,552,968
11	Other Funds Total 687,443,758 (15,777,157) 671,666,601
12	Total – University of Rhode Island 777,314,056 (13,474,119) 763,839,937
13	Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or
14	unencumbered balances as of June 30, 2016 2017 relating to the University of Rhode Island are
15	hereby reappropriated to fiscal year 2017 2018.
16	Rhode Island College
17	General Revenue
18	General Revenue 46,996,330 0 46,996,330
19	Rhode Island College shall not decrease internal student financial aid maintain tuition
20	charges in the 2016 – 2017 academic year at the same level as the 2015 – 2016 academic year.
21	The President of the institution shall report, prior to the commencement of the 2016 – 2017
22	academic year, to the chair of the Council of Postsecondary Education that such tuition charges
23	and student aid levels have been achieved at the start of FY 2017 as prescribed above.
24	Debt Service 2,565,254 (55,863) 2,509,391
25	General Funds Total 49,561,584 (55,863) 49,505,721
26	Other Funds
27	University and College Funds 125,192,812 (4,999,717) 120,193,095
28	Debt – Education and General 880,568 256,275 1,136,843
29	Debt – Housing 368,195 1 368,196
30	Debt – Student Center and Dining 154,068 0 154,068
31	Debt – Student Union 235,656 0 235,656
32	Debt – G.O. Debt Service 1,644,459 (3,000) 1,641,459
33	Debt – Energy Conservation 256,275 0 256,275
34	Rhode Island Capital Plan Funds
	LC000840 - Page 193 of 319
1	Asset Protection 5,357,700 482,417 5,840,117
2	Infrastructure Modernization 3,000,000 (245,299) 2,754,701
3	Other Funds Total 137,089,733 (4,509,323) 132,580,410
4	Total – Rhode Island College 186,651,317 (4,565,186) 182,086,131
5	Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or
6	unencumbered balances as of June 30, 2016 2017 relating to Rhode Island College are hereby
7	reappropriated to fiscal year 2017 2018.
8	Community College of Rhode Island
9	General Revenue
10	General Revenue 48,936,035 0 48,936,035
11	The Community College of Rhode Island College shall not decrease internal student
12	financial aid maintain tuition charges in the 2016 – 2017 academic year at the same level as the
13	2015 – 2016 academic year. The President of the institution shall report, prior to the
14	commencement of the 2016 – 2017 academic year, to the chair of the Council of Postsecondary
15	Education that such tuition charges and student aid levels have been achieved at the start of FY
16	2017 as prescribed above.
17	Debt Service 1,691,204 (47,755) 1,643,449
18	General Revenue Total 50,627,239 (47,755) 50,579,484
19	Restricted Receipts 660,795 0 660,795
20	Other Funds
21	University and College Funds 107,824,292 (11,234,777) 96,589,515
22	CCRI Debt Service – Energy Conservation 807,225 0 807,225
23	Rhode Island Capital Plan Funds
24	Asset Protection 3,032,100 0 3,032,100
25	Knight Campus Renewal 4,000,000 1,223,902 5,223,902
26	Other Funds Total 115,663,617 (10,010,875) 105,652,742
27	Total – Community College of RI 166,951,651 (10,058,630) 156,893,021
28	Notwithstanding the provisions of section 35-3-15 of the general laws, all unexpended or
29	unencumbered balances as of June 30, 2016 2017 relating to the Community College of Rhode
30	Island are hereby reappropriated to fiscal year 2017 2018.
31	Grand Total – General Revenue 196,357,528 2,252,895 198,610,423
32	Grand Total – Public Higher 1,161,281,203 (24,012,939) 1,137,268,264
33	RI State Council on the Arts
34	General Revenue
	LC000840 - Page 194 of 319
1	Operating Support 786,884 (12,516) 774,368
2	Grants 1,165,000 0 1,165,000
3	Provided that $375,000 be provided to support the operational costs of WaterFire
4	Providence art installations.
5	General Revenue Total 1,951,884 (12,516) 1,939,368
6	Federal Funds 775,454 11,274 786,728
7	Restricted Receipts 0 25,000 25,000
8	Other Funds
9	Arts for Public Facilities 303,200 677,500 980,700
10	Other Funds Total 303,200 677,500 980,700
11	Grand Total - RI State Council on the Arts 3,030,538 701,258 3,731,796
12	RI Atomic Energy Commission
13	General Revenue 981,100 (1,418) 979,682
14	Federal Funds 32,422 196,441 228,863
15	Other Funds
16	URI Sponsored Research 269,527 1,072 270,599
17	Rhode Island Capital Plan Funds
18	RINSC Asset Protection 50,000 9,895 59,895
19	Other Funds Total 319,527 10,967 330,494
20	Grand Total - RI Atomic Energy Commission 1,333,049 205,990 1,539,039
21	RI Historical Preservation and Heritage Commission
22	General Revenue 1,202,559 (40,558) 1,162,001
23	Provided that $30,000 support the operational costs of the Fort Adams Trust’s restoration
24	activities.
25	Federal Funds 1,093,966 453,062 1,547,028
26	Restricted Receipts 427,175 2,025 429,200
27	Other Funds
28	RIDOT – Project Review 79,998 (144) 79,854
29	Grand Total – RI Historical Preservation
30	and Heritage Commission 2,803,698 414,385 3,218,083
31	Attorney General
32	Criminal
33	General Revenue 15,675,925 229,207 15,905,132
34	Federal Funds 1,692,545 1,658,462 3,351,007
	LC000840 - Page 195 of 319
1	Restricted Receipts 6,637,954 8,923,978 15,561,932
2	Total – Criminal 24,006,424 10,811,647 34,818,071
3	Civil
4	General Revenue 5,135,543 267,158 5,402,701
5	Restricted Receipts 916,302 (313,433) 602,869
6	Total – Civil 6,051,845 (46,275) 6,005,570
7	Bureau of Criminal Identification
8	General Revenue 1,758,215 (113,879) 1,644,336
9	Total – Bureau of Criminal Identification
10	General
11	General Revenue 3,026,299 168,315 3,194,614
12	Other Funds
13	Rhode Island Capital Plan Fund
14	Building Renovations and Repairs 300,000 117,530 417,530
15	Other Funds Total 300,000 117,530 417,530
16	Total – General 3,326,299 285,845 3,612,144
17	Grand Total – General Revenue 25,595,982 550,801 26,146,783
18	Grand Total - Attorney General 35,142,783 10,937,338 46,080,121
19	Corrections
20	Central Management
21	General Revenue 10,179,627 (81,130) 10,098,497
22	Federal Funds 0 59,219 59,219
23	Total – Central Management 10,179,627 (21,911) 10,157,716
24	Parole Board
25	General Revenue 1,338,481 82,301 1,420,782
26	Federal Funds 14,006 96,978 110,984
27	Total – Parole Board 1,352,487 179,279 1,531,766
28	Custody and Security
29	General Revenue 133,857,240 2,409,629 136,266,869
30	Federal Funds 571,759 303,831 875,590
31	Restricted Receipts 0 35,000 35,000
32	Total – Custody and Security 134,428,999 2,748,460 137,177,459
33	Institutional Support
34	General Revenue 15,822,911 (459,705) 15,363,206
	LC000840 - Page 196 of 319
1	Other Funds
2	Rhode Island Capital Plan Fund
3	Asset Protection 3,750,000 (564,031) 3,185,969
4	Maximum – General Renovations 1,300,000 24,253 1,324,253
5	Building State Match – Reintegration C 150,000 389,133 539,133
6	General Renovations Women’s 750,000 (438,934) 311,066
7	ISC Exterior Envelope and HVAC 1,700,000 (1,275,000) 425,000
8	Medium Infrastructure 4,000,000 (2,000,000) 2,000,000
9	Correctional Facilities Study 250,000 0 250,000
10	Other Funds Total 11,900,000 (3,864,579) 8,035,421
11	Total - Institutional Support 27,722,911 (4,324,284) 23,398,627
12	Institutional Based Rehab/Population Management
13	General Revenue 11,599,533 (1,875,961) 9,723,572
14	Federal Funds 527,398 216,485 743,883
15	Restricted Receipts 44,023 0 44,023
16	Total – Institutional Based Rehab/Pop/Mgt. 12,170,954 (1,659,476) 10,511,478
17	Healthcare Services
18	General Revenue 21,909,573 1,276,829 23,186,402
19	Total – Healthcare Services 21,909,573 1,276,829 23,186,402
20	Community Corrections
21	General Revenue 16,993,141 297,329 17,290,470
22	Provided that $250,000 be allocated to Crossroads Rhode Island for sex offender
23	discharge planning.
24	Federal Funds 16,845 78,049 94,894
25	Restricted Receipts 16,118 1,195 17,313
26	Total – Community Corrections 17,026,104 376,573 17,402,677
27	Grand Total - General Revenue 211,700,506 1,649,292 213,349,798
28	Grand Total – Corrections 224,790,655 (1,424,530) 223,366,125
29	Judiciary
30	Supreme Court
31	General Revenue
32	General Revenue 27,510,065 922,853 28,432,918
33	Provided however, that no more than $1,056,438 in combined total shall be offset to the
34	Public Defender’s Office, the Attorney General’s Office, the Department of Corrections, the
	LC000840 - Page 197 of 319
1	Department of Children Youth and Families, and the Department of Public Safety for square-
2	footage occupancy costs in public courthouses and further provided that $230,000 be allocated to
3	the Rhode Island Coalition Against Domestic Violence for the domestic abuse court advocacy
4	project pursuant to Rhode Island General Law, Section 12-29-7 and that $90,000 be allocated to
5	Rhode Island Legal Services, Inc. to provide housing and eviction defense to indigent individuals.
6	Defense of Indigents 3,784,406 18,760 3,803,166
7	General Funds Total 31,294,471 941,613 32,236,084
8	Federal Funds 128,933 (6,590) 122,343
9	Restricted Receipts 3,076,384 1,607,945 4,684,329
10	Other Funds
11	Rhode Island Capital Plan Fund
12	Judicial HVAC 900,000 180,072 1,080,072
13	Judicial Complexes Asset Protection 875,000 (6,386) 868,614
14	Licht Judicial Complex Restoration 750,000 0 750,000
15	Murray Judicial Complex Cell Block 3,000,000 405,070 3,405,070
16	Other Funds Total 5,525,000 578,756 6,103,756
17	Total - Supreme Court 40,024,788 3,121,724 43,146,512
18	Judicial Tenure and Discipline
19	General Revenue 124,865 (376) 124,489
20	Total – Judicial Tenure and Discipline 124,865 (376) 124,48
21	Superior Court
22	General Revenue 22,807,060 85,630 22,892,690
23	Federal Funds 51,290 48,968 100,258
24	Restricted Receipts 371,741 (1,188) 370,553
25	Total - Superior Court 23,230,091 133,410 23,363,501
26	Family Court
27	General Revenue 21,495,610 (1,052,179) 20,443,431
28	Federal Funds 2,770,714 502,407 3,273,121
29	Total - Family Court 24,266,324 (549,772) 23,716,552
30	District Court
31	General Revenue 11,865,905 561,999 12,427,904
32	Federal Funds 303,154 149,453 452,607
33	Restricted Receipts 138,045 (71,686) 66,359
34	Total - District Court 12,307,104 639,766 12,946,870
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1	Traffic Tribunal
2	General Revenue 9,018,180 (75,188) 8,942,992
3	Total – Traffic Tribunal 9,018,180 (75,188) 8,942,992
4	Workers' Compensation Court
5	Restricted Receipts 8,096,017 (84,731) 8,011,286
6	Total – Workers’ Compensation Court 8,096,017 (84,731) 8,011,286
7	Grand Total – General Revenue 96,606,091 461,499 97,067,590
8	Grand Total – Judiciary 117,067,369 3,184,833 120,252,202
9	Military Staff
10	General Revenue 2,659,719 (33,378) 2,626,341
11	Federal Funds 17,497,797 (837,684) 16,660,113
12	Restricted Receipts
13	RI Military Family Relief Fund 300,000 (200,000) 100,000
14	Counter Drug Asset Forfeiture 37,300 (5,300) 32,000
15	Other Funds
16	Rhode Island Capital Plan Fund
17	Armory of Mounted Command Roof
18	Replacement 357,500 (224,775) 132,725
19	Asset Protection 700,000 108,202 808,202
20	Benefit Street Arsenal 0 37,564 37,564
21	Bristol Readiness Center 125,000 (125,000) 0
22	Joint Force Headquarters Building 1,500,000 (900,000) 600,000
23	Other Funds Total 2,682,500 (1,104,090) 1,578,491
24	Grand Total – Military Staff 23,177,316 (2,180,371) 20,996,945
25	Public Safety
26	Central Management
27	General Revenue 1,407,618 464,128 1,871,746
28	Federal Funds 5,398,633 2,831,488 8,230,121
29	Total – Central Management 6,806,251 3,295,616 10,101,867
30	E-911 Emergency Telephone System
31	General Revenue 5,699,440 (65,576) 5,633,864
32	Total - E-911 Emergency Telephone System 5,699,440 (65,576) 5,633,864
33	State Fire Marshal
34	General Revenue 3,248,953 157,360 3,406,313
	LC000840 - Page 199 of 319
1	Federal Funds 425,169 (6,263) 418,906
2	Restricted Receipts 195,472 0 195,472
3	Other Funds
4	Rhode Island Capital Plan Funds
5	Fire Academy 1,215,000 1,629,189 2,844,189
6	Quonset Development Corp 62,294 (8,781) 53,513
7	Other Funds Total 1,277,294 1,620,408 2,897,702
8	Total - State Fire Marshal 5,146,888 1,771,505 6,918,393
9	Security Services
10	General Revenue 23,162,912 414,561 23,577,473
11	Total – Security Services 23,162,912 414,561 23,577,473
12	Municipal Police Training Academy
13	General Revenue 263,746 (965) 262,781
14	Federal Funds 222,395 0 222,395
15	Total - Municipal Police Training Academy 468,141 (965) 485,176
16	State Police
17	General Revenue 65,659,479 1,153,508 66,812,987
18	Federal Funds 3,246,194 13,415 3,259,609
19	Restricted Receipts 4,256,598 15,290,621 19,547,219
20	Other Funds
21	Airport Commission Assistance 212,221 (62,221) 150,000
22	Lottery Commission Assistance 1,611,348 (501,155) 1,110,193
23	Road Construction Reimbursement 2,934,672 0 2,934,672
24	Weight & Measurement Reimbursement 0 440,000 440,000
25	Rhode Island Capital Plan Funds
26	DPS Asset Protection 250,000 410,479 660,479
27	Lincoln Woods Barracks Renovations 500,000 11,345 511,345
28	State Police Barracks/Training Academy 0 191,244 191,244
29	Other Funds Total 5,508,241 489,692 5,997,933
30	Total - State Police 78,670,512 16,947,236 95,617,748
31	Grand Total – General Revenue 99,442,148 2,123,016 101,565,164
32	Grand Total – Public Safety 119,972,144 22,362,377 142,334,521
33	Emergency Management
34	General Revenue 1,848,876 (1,028) 1,847,848
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1	Federal Funds 20,094,466 (2,148,112) 17,946,354
2	Restricted Receipts 861,046 (412,934) 448,112
3	Other Funds
4	Rhode Island Capital Plan Fund
5	Emergency Management Building 189,750 0 189,750
6	Hurricane Sandy Cleanup 0 232,075 232,075
7	Rhode Island State Communication Network 1,000,000 494,414 1,494,414
8	Other Funds Total 1,189,750 726,489 1,916,239
9	Grand Total – Emergency Management 23,994,138 (1,835,585) 22,158,553
10	Office of Public Defender
11	General Revenue 11,784,382 (16,174) 11,768,208
12	Federal Funds 112,820 (15,000) 97,820
13	Grand Total - Office of Public Defender 11,897,202 (31,174) 11,866,028
14	Environmental Management
15	Office of the Director
16	General Revenue
17	Permit Streamlining 5,165,334 351,172 5,516,506
18	General Revenue Total 5,165,334 351,172 5,516,506
19	Restricted Receipts 3,901,548 191,256 4,092,804
20	Total – Office of the Director 9,066,882 542,428 9,609,310
21	Provided that $200,000 be allocated to the Town of North Providence for its Eliot
22	Avenue flooding and drainage remediation project.
23	Natural Resources
24	General Revenue 21,124,014 7,851 21,131,865
25	Federal Funds 20,047,496 2,691,502 22,738,998
26	Restricted Receipts 6,121,231 (2,313,948) 3,807,283
27	Other Funds
28	DOT Recreational Projects 909,926 762,000 1,671,926
29	Blackstone Bikepath Design 2,059,579 0 2,059,579
30	Transportation MOU 78,350 0 78,350
31	Rhode Island Capital Plan Funds
32	Dam Repair 1,230,000 (975,805) 254,195
33	Fort Adams Rehabilitation 300,000 1,625 301,625
34	World War II Facility 0 128,715 128,715
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1	Rocky Point Acquisitions/Renovations 0 116,992 116,992
2	Fort Adams America’s Cup 1,400,000 69,851 1,469,851
3	Recreational Facilities Improvements 3,100,000 2,589,289 5,689,289
4	Galilee Piers Upgrade 250,000 61,611 311,611
5	Newport Piers 187,500 (50,000) 137,500
6	Fish & Wildlife Maintenance Facilities 150,000 (150,000) 0
7	Blackstone Valley Bike Path 300,000 93,348 393,348
8	Marine Infrastructure/Pier Development 100,000 0 100,000
9	Natural Resources Offices/Visitor’s Center 3,500,000 (2,437,741) 1,062,259
10	State Recreation Building Demolition 100,000 0 100,000
11	Other Funds Total 13,665,355 (35,822) 13,629,533
12	Total - Natural Resources 60,958,096 595,290 61,553,386
13	Environmental Protection
14	General Revenue 13,917,429 (2,270,350) 11,647,079
15	Federal Funds 9,681,296 1,735,701 11,416,997
16	Restricted Receipts 8,959,177 91,032 9,050,209
17	Other Funds
18	Transportation MOU 164,734 0 164,734
19	Total - Environmental Protection 32,722,636 (443,617) 32,279,019
20	Grand Total – General Revenue 40,206,777 (1,911,327) 38,295,450
21	Grand Total - Environmental Management 102,747,614 694,101 103,441,715
22	Coastal Resources Management Council
23	General Revenue 2,452,438 48,109 2,500,547
24	Federal Funds 4,148,312 1,069,762 5,218,074
25	Restricted Receipts 250,000 0 250,000
26	Other Funds
27	Rhode Island Capital Plan Funds
28	South Coast Restoration Project 321,775 0 321,775
29	Rhode Island Coastal Storm Risk Study 150,000 0 150,000
30	Total Other Funds 471,775 0 471,775
31	Grand Total - Coastal Resources Mgmt. 7,322,525 1,117,871 8,440,396
32	Transportation
33	Central Management
34	Federal Funds 6,610,622 2,091,989 8,702,611
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1	Other Funds
2	Gasoline Tax 2,593,920 2,011,759 4,605,679
3	Total – Central Management 9,204,542 4,103,748 13,308,290
4	Management and Budget
5	Other Funds
6	Gasoline Tax 3,009,298 1,089,405 4,098,703
7	Total – Management and Budget 3,009,298 1,089,405 4,098,703
8	Infrastructure Engineering – GARVEE/Motor Fuel Tax Bonds
9	Federal Funds
10	Federal Funds 260,384,515 (2,655,581) 257,728,934
11	Federal Funds – Stimulus 5,414,843 (302,029) 5,112,814
12	Federal Funds Total 265,799,358 (2,957,610) 262,841,748
13	Restricted Receipts 180,219 3,429,934 3,610,153
14	Other Funds
15	Gasoline Tax 72,131,457 3,633,644 75,765,101
16	Land Sale Revenue 2,500,000 41,771 2,541,771
17	Rhode Island Capital Plan Fund
18	RIPTA Land and Buildings 120,000 142,696 262,696
19	Highway Improvement Program 27,200,000 5,251,346 32,451,346
20	Other Funds Total 101,951,457 9,069,457 111,020,914
21	Total – Infrastructure Engineering
22	GARVEE/Motor Fuel Tax Bonds 367,931,034 9,541,781 377,472,815
23	Infrastructure Maintenance
24	Other Funds
25	Gasoline Tax 12,846,800 9,570,794 22,417,594
26	Non-Land Surplus Property 50,000 0 50,000
27	Outdoor Advertising 100,000 0 100,000
28	Rhode Island Highway Maintenance Account 79,792,727 30,409,402 110,202,129
29	Rhode Island Capital Plan Fund
30	Maintenance Facilities Improvements 400,000 0 400,000
31	Salt Storage Facilities 1,000,000 961,934 1,961,934
32	Portsmouth Facility 2,273,444 0 2,273,444
33	Maintenance-Capital Equip. Replacement 1,500,000 0 1,500,000
34	Train Station Maintenance and Repairs 350,000 323,555 673,555
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1	Other Funds Total 98,312,971 41,265,685 139,578,656
2	Total – Infrastructure Maintenance 98,312,971 41,265,685 139,578,656
3	Grand Total – Transportation 478,457,845 56,000,619 534,458,464
4	Statewide Totals
5	General Revenue 3,683,715,867 16,689,108 3,700,404,975
6	Federal Funds 2,957,075,839 141,035,654 3,098,111,493
7	Restricted Receipts 257,000,390 49,762,067 306,762,457
8	Other Funds 2,040,921,480 54,342,736 2,095,264,216
9	Statewide Grand Total 8,938,713,393 261,829,748 9,200,543,141
10	SECTION 2. Each line appearing in Section 1 of this Article shall constitute an
11	appropriation.
12	SECTION 3. The general assembly authorizes the state controller to establish the internal
13	service accounts shown below, and no other, to finance and account for the operations of state
14	agencies that provide services to other agencies, institutions and other governmental units on a
15	cost reimbursed basis. The purpose of these accounts is to ensure that certain activities are
16	managed in a businesslike manner, promote efficient use of services by making agencies pay the
17	full costs associated with providing the services, and allocate the costs of central administrative
18	services across all fund types, so that federal and other non-general fund programs share in the
19	costs of general government support. The controller is authorized to reimburse these accounts for
20	the cost of work or services performed for any other department or agency subject to the
21	following expenditure limitations:
22	FY2017 FY2017 FY2017
23	Account Enacted Change Final
24	State Assessed Fringe Benefit Internal Service Fund 41,699,269 (1,853,175) 39,846,094
25	Administration Central Utilities Internal Service Fund 14,900,975 6,025,473 20,926,448
26	State Central Mail Internal Service Fund 6,190,285 636,305 6,826,590
27	State Telecommunications Internal Service Fund 3,017,521 167,632 3,185,153
28	State Automotive Fleet Internal Service Fund 12,543,165 (78,722) 12,464,443
29	Surplus Property Internal Service Fund 2,500 500 3,000
30	Health Insurance Internal Service Fund 251,723,462 53,362 251,776,824
31	Other Post-Employment Benefits Fund 63,934,483 0 63,934,483
32	Capital Police Internal Service Fund 1,172,421 (44,402) 1,128,019
33	Corrections Central Distribution Center Internal
34	Service Fund 7,094,183 (46,657) 7,047,526
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1	Correctional Industries Internal Service Fund 7,304,210 174,271 7,478,481
2	Secretary of State Record Center Internal Service Fund 907,177 (98,650) 808,527
3	SECTION 4. Departments and agencies listed below may not exceed the number of full-
4	time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do
5	not include seasonal or intermittent positions whose scheduled period of employment does not
6	exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and
7	twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include
8	individuals engaged in training, the completion of which is a prerequisite of employment.
9	Provided, however, that the Governor or designee, Speaker of the House of Representatives or
10	designee, and the President of the Senate or designee may authorize an adjustment to any
11	limitation. Prior to the authorization, the State Budget Officer shall make a detailed written
12	recommendation to the Governor, the Speaker of the House, and the President of the Senate. A
13	copy of the recommendation and authorization to adjust shall be transmitted to the chairman of
14	the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the
15	Senate Fiscal Advisor.
16	State employees whose funding is from non-state general revenue funds that are time
17	limited shall receive limited term appointment with the term limited to the availability of non-
18	state general revenue funding source.
19	FY 2017 FTE POSITION AUTHORIZATION
20	Departments and Agencies Full-Time Equivalent
21	Administration 708.7
22	Business Regulation 97.0 106.0
23	Executive Office of Commerce 16.0
24	Labor and Training 409.5 436.2
25	Revenue 523.5
26	Legislature 298.5
27	Office of the Lieutenant Governor 8.0
28	Office of the Secretary of State 59.0
29	Office of the General Treasurer 88.0 87.0
30	Board of Elections 12.0
31	Rhode Island Ethics Commission 12.0
32	Office of the Governor 45.0
33	Commission for Human Rights 14.5
34	Public Utilities Commission 51.0 54.0
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1	Office of Health and Human Services 179.0 178.0
2	Children, Youth, and Families 629.5 628.5
3	Health 503.6
4	Human Services 937.1
5	Behavioral Health, Developmental Disabilities, and Hospitals 1,352.4
6	Office of the Child Advocate 6.0 7.0
7	Commission on the Deaf and Hard of Hearing 4.0
8	Governor's Commission on Disabilities 4.0
9	Office of the Mental Health Advocate 4.0
10	Elementary and Secondary Education 139.1
11	School for the Deaf 60.0
12	Davies Career and Technical School 126.0
13	Office of the Postsecondary Commissioner 27.0
14	Provided that 1.0 of the total authorization would be available only for positions that are
15	supported by third-party funds.
16	University of Rhode Island 2,489.5
17	Provided that 573.8 of the total authorization would be available only for positions that
18	are supported by third-party funds.
19	Rhode Island College 926.2
20	Provided that 82.0 of the total authorization would be available only for positions that are
21	supported by third-party funds.
22	Community College of Rhode Island 854.1
23	Provided that 89.0 of the total authorization would be available only for positions that are
24	supported by third-party funds.
25	Rhode Island State Council on the Arts 8.6
26	RI Atomic Energy Commission 8.6
27	Historical Preservation and Heritage Commission 16.6 15.6
28	Office of the Attorney General 235.1
29	Corrections 1423.0
30	Judicial 723.3 723.5
31	Military Staff 92.0
32	Public Safety 610.2 616.6
33	Office of the Public Defender 92.0
34	Emergency Management 29.0
	LC000840 - Page 206 of 319
1	Environmental Management 399.0 400
2	Coastal Resources Management Council 29.0
3	Transportation 701.0 741.0
4	Total 14,952.6 15,035.9
5	SECTION 5. This article shall take effect upon passage.
6	ARTICLE 11
7	RELATING TO THE MOTOR VEHICLE EXCISE TAX
8	SECTION 1. Section 44-34-11 of the General Laws in Chapter 44-34 entitled “Excise on
9	Motor Vehicles and Trailers” is hereby amended to read as follows:
10	44-34-11. Rhode Island vehicle value commission.
11	(a) There is hereby authorized, created, and established the "Rhode Island vehicle value
12	commission" whose function it is to establish presumptive values of vehicles and trailers subject
13	to the excise tax.
14	(b) The commission shall consist of the following seven (7) members as follows:
15	(1) The director of the department of revenue or his/her designee from the department of
16	revenue;
17	(2) Five (5) local tax officials named by the governor, at least one of whom shall be from
18	a city or town under ten thousand (10,000) population and at least one of whom is from a city or
19	town over fifty thousand (50,000) population in making these appointments the governor shall
20	give due consideration to the recommendations submitted by the President of the Rhode Island
21	League of Cities and Towns and each appointment shall be subject to the advice and consent of
22	the senate;
23	(3) And one motor vehicle dealer appointed by the governor upon giving due
24	consideration to the recommendation of the director of revenue and subject to the advice and
25	consent of the senate.
26	(4) All members shall serve for a term of three (3) years.
27	(5) Current legislative appointees shall cease to be members of the commission upon the
28	effective date of this act. Non-legislative appointees to the commission may serve out their terms
29	whereupon their successors shall be appointed in accordance with this act. No oneperson shall be
30	eligible for appointment to the commission unless he or she is a resident of this state.
31	(6) Public members of the commission shall be removable by the governor pursuant to §
32	36-1-7 for cause only, and removal solely for partisan or personal reasons unrelated to capacity or
33	fitness for the office shall be unlawful.
34	(7) The governor shall appoint a chairperson from the commission's members. The
	LC000840 - Page 207 of 319
1	commission shall elect from among its members other officers as it may deem appropriate.
2	(c) The commission shall annually determine the presumptive values of vehicles and
3	trailers subject to the excise tax in the following manner:
4	(1) Not earlier than September 30 and not later than December 31 of each year, the
5	commission shall by rule adopt a methodology for determining the presumptive value of vehicles
6	and trailers subject to the excise tax which shall give consideration to the following factors:
7	(i) The average retail price of similar vehicles of the same make, model, type, and year of
8	manufacture as reported by motor vehicle dealers or by official used car guides, such as that of
9	the National Automobile Dealers Association for New England. Where regional guides are not
10	available, the commission shall use other publications deemed appropriate; and
11	(ii) Other information concerning the average retail prices for make, model, type, and
12	year of manufacture of motor vehicles as the director and the Rhode Island vehicle value
13	commission may deem appropriate to determine fair values.
14	(iii) Notwithstanding the foregoing, the presumptive value of vehicles and trailers subject
15	to the excise tax shall not exceed seventy percent (70%) of the clean retail value for those
16	vehicles reported by the National Automobile Dealers Association Official Used Car Guide New
17	England Edition. In the event that no such clean retail value is reported, the presumptive value
18	shall not exceed seventy percent (70%) of:
19	(a) Manufacturer’s suggested retail price (MSRP) for new model year vehicles as
20	reported by the National Automobile Dealers Association Guides; or
21	(b) Average retail value for those vehicles reported by the National Automobile Dealers
22	Association Official Used Car Guide National Edition and
23	Motorcycle/Snowmobile/ATV/Personal Watercraft Appraisal Guide; or
24	(c) Used retail value for those vehicles reported in the National Association of
25	Automobile Dealers Recreational Vehicle Appraisal Guide; or
26	(d) Low value for those vehicles reported in the National Automobile Dealers
27	Association Classic, Collectible, Exotic and Muscle Car Appraisal Guide & Directory.
28	(2) On or before February 1 of each year, it the commission shall adopt a list of values for
29	vehicles and trailers of the same make, model, type, and year of manufacture as of the preceding
30	December 31 in accordance with the methodology adopted between September 30 and December
31	31; the list shall be subject to a public hearing at least five (5) business days prior to the date of its
32	adoption.
33	(3) Nothing in this section shall be deemed to require the commission to determine the
34	presumptive value of vehicles and trailers which are unique, to which special equipment has been
	LC000840 - Page 208 of 319
1	added or to which special modifications have been made, or for which adequate information is
2	not available from the sources referenced in subdivision (1) of this subsection; provided, that the
3	commission may consider those factors in its lists or regulations.
4	(4) The commission shall annually provide the list of presumptive values of vehicles and
5	trailers to each tax assessor on or before February 15 of each year.
6	(d) The commission shall adopt rules governing its organization and the conduct of its
7	business; prior to the adoption of the rules, the chair shall have the power to call meetings, and a
8	simple majority of the members of the commission, as provided for in subsection (b) of this
9	section, is necessary for a quorum, which quorum by majority vote shall have the power to
10	conduct business in the name of the commission. The commission may adopt rules and elect from
11	among its members such other officers as it deems necessary.
12	(e) The commission shall have the power to contract for professional services that it
13	deems necessary for the development of the methodology for determining presumptive values, for
14	calculating presumptive values according to the methodology, and for preparing the list of
15	presumptive values in a form and format that is generally usable by cities and towns in their
16	preparation of tax bills. The commission shall also have the power to incur reasonable expenses
17	in the conduct of its business as required by this chapter and to authorize payments for the
18	expenses.
19	(f) Commission members shall receive no compensation for the performance of their
20	duties but may be reimbursed for their reasonable expenses incurred in carrying out such duties.
21	(g) The commission shall respond to petitions of appeal by local boards of review in
22	accordance with the provisions of § 44-34-9.
23	(h) The commission shall establish, by rule, procedures for adopting an annual budget
24	and for administering its finances. After July 1, 1986, one-half (1/2) of the cost of the
25	commission's operations shall be borne by the state and one-half (1/2) shall be borne by cities and
26	towns within the state, with the city and town share distributed among cities and towns on a per
27	capita basis.
28	(i) Within ninety (90) days after the end of each fiscal year, the commission shall approve
29	and submit an annual report to the governor, the speaker of the house of representatives, the
30	president of the senate, and the secretary of state of its activities during that fiscal year. The report
31	shall provide: an operating statement summarizing meetings or hearings held, meeting minutes if
32	requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies
33	conducted, policies and plans developed, approved, or modified, and programs administered or
34	initiated; a consolidated financial statement of all funds received and expended including the
	LC000840 - Page 209 of 319
1	source of the funds, a listing of any staff supported by these funds, and a summary of any clerical,
2	administrative or technical support received; a summary of performance during the previous
3	fiscal year including accomplishments, shortcomings and remedies; a synopsis of hearings,
4	complaints, suspensions, or other legal matters related to the authority of the commission; a
5	summary of any training courses held pursuant to this subsection, a briefing on anticipated
6	activities in the upcoming fiscal year; and findings and recommendations for improvements. The
7	report shall be posted electronically on the general assembly and the secretary of state's websites
8	as prescribed in § 42-20-8.2. The director of the department of revenue shall be responsible for
9	the enforcement of this provision.
10	SECTION 2. Section 44-34.1-1 of the General Laws in Chapter 44-34.1 entitled “Motor
11	Vehicle and Trailer Excise Tax Elimination Act of 1998” is hereby amended to read as follows:
12	44-34.1-1. Excise tax phase-out.
13	(a)(1) Notwithstanding the provisions of chapter 34 of this title or any other provisions to
14	the contrary, the motor vehicle and trailer excise tax established by § 44-34-1 may be phased out.
15	The phase-out shall apply to all motor vehicles and trailers, including leased vehicles.
16	(2) Lessors of vehicles that pay excise taxes directly to municipalities shall provide
17	lessees, at the time of entering into the lease agreement, an estimate of annual excise taxes
18	payable throughout the term of the lease. In the event the actual excise tax is less than the
19	estimated excise tax, the lessor shall annually rebate to the lessee the difference between the
20	actual excise tax and the estimated excise tax.
21	(b) Pursuant to the provisions of this section, all motor vehicles shall be assessed a value
22	by the vehicle value commission. That value shall be assessed according to the provisions of §
23	44-34-11(c)(1) and in accordance with the terms as defined in subsection (d) of this section;
24	provided, however, that the maximum taxable value percentage applicable to model year values
25	as of December 31, 1997, shall continue to be applicable in future year valuations aged by one
26	year in each succeeding year.
27	(c)(1) The motor vehicle excise tax phase-out shall commence with the excise tax bills
28	mailed to taxpayers for the fiscal year 2000. The phase-out, beyond fiscal year 2003, shall be
29	subject to annual review and appropriation by the general assembly. The tax assessors of the
30	various cities and towns and fire districts shall reduce the average retail value of each vehicle
31	assessed by using the prorated exemptions from the following table:
32	Local Fiscal Year State fiscal year
33	Exempt from value Local Exemption Reimbursement
34	fiscal year 1999 0 $1,500
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1	fiscal year 2000 $1,500 $2,500
2	fiscal year 2001 $2,500 $3,500
3	fiscal year 2002 $3,500 $4,500
4	fiscal years 2003, 2004
5	and 2005 $4,500 $4,500
6	for fiscal year 2006 and $5,000 $5,000
7	for fiscal year 2007 $6,000 $6,000
8	for fiscal years 2008, 2009 and 2010 the exemption and the state fiscal year
9	reimbursement shall be increased, at a minimum, to the maximum amount to the nearest two
10	hundred and fifty dollar ($250) increment within the allocation of one and twenty-two hundredths
11	percent (l.22%) of net terminal income derived from video lottery games pursuant to the
12	provisions of § 42-61-15, and in no event shall the exemption in any fiscal year be less than the
13	prior fiscal year.
14	for fiscal year 2011 and thereafter, the exemption shall be five hundred dollars ($500).
15	Cities and towns may provide an additional exemption; provided, however, any such additional
16	exemption shall not be subject to reimbursement.
17	for fiscal year 2018 and thereafter, in no event shall the exemption in any fiscal year be
18	less than the prior fiscal year. Cities and towns may provide an additional exemption; provided,
19	however, any such additional exemption shall not be subject to reimbursement.
20	(2) The excise tax phase-out shall provide levels of assessed value reductions until the tax
21	is eliminated or reduced as provided in this chapter.
22	(3) Current exemptions shall remain in effect as provided in this chapter.
23	(4) The excise tax rates and ratios of assessment shall be maintained at a level identical to
24	the level in effect for fiscal year 1998 for each city, town, and fire district; provided, in the town
25	of Johnston the excise tax rate and ratios of assessment shall be maintained at a level identical to
26	the level in effect for fiscal year 1999 levels and the levy of a city, town, or fire district shall be
27	limited to the lesser of the maximum taxable value or net assessed value for purposes of
28	collecting the tax in any given year. Provided, however, for fiscal year 2011 and thereafter, the
29	rates and ratios of assessment may be less than but not more than the rates described in this
30	subsection (4). For fiscal year 2018 and thereafter, the ratios of assessment may be more than the
31	ratios described in this subsection (4), provided that they shall not exceed one hundred percent
32	(100%).
33	(d) Definitions. (1) "Maximum taxable value" means the value of vehicles as prescribed
34	by § 44-34-11 reduced by the percentage of assessed value applicable to model year values as
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1	determined by the Rhode Island vehicle value commission as of December 31, 1997, for the
2	vehicles valued by the commission as of December 31, 1997. For all vehicle value types not
3	valued by the Rhode Island vehicle value commission as of December 31, 1997, the maximum
4	taxable value shall be the latest value determined by a local assessor from an appropriate pricing
5	guide, multiplied by the ratio of assessment used by that city, town, or fire district for a particular
6	model year as of December 31, 1997.
7	(2) "Net assessed value" means the motor vehicle values as determined in accordance
8	with § 44-34-11 less all personal exemptions allowed by cities, towns, fire districts, and the state
9	of Rhode Island exemption value as provided for in § 44-34.1-1(c)(1).
10	(e) If any provision of this chapter shall be held invalid by any court of competent
11	jurisdiction, the remainder of this chapter and the applications of the provisions hereof shall not
12	be effected thereby.
13	SECTION 3. This article shall take effect as of July 1, 2017.
14	ARTICLE 12
15	RELATING TO MEDICAID REFORM ACT OF 2008 RESOLUTION
16	SECTION 1. Rhode Island Medicaid Reform Act of 2008 Resolution.
17	WHEREAS, the General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode
18	Island Medicaid Reform Act of 2008”; and
19	WHEREAS, a legislative enactment is required pursuant to Rhode Island General Laws
20	42-12.4-1, et seq.; and
21	WHEREAS, Rhode Island General Law 42-7.2-5(3)(a) provides that the Secretary of the
22	Executive Office of Health and Human Services (“Executive Office”) is responsible for the
23	review and coordination of any Medicaid section 1115 demonstration waiver requests and
24	renewals as well as any initiatives and proposals requiring amendments to the Medicaid state plan
25	or category II or III changes as described in the demonstration, “with potential to affect the scope,
26	amount, or duration of publicly-funded health care services, provider payments or
27	reimbursements, or access to or the availability of benefits and services provided by Rhode Island
28	general and public laws”; and
29	WHEREAS, in pursuit of a more cost-effective consumer choice system of care that is
30	fiscally sound and sustainable, the Secretary requests legislative approval of the following
31	proposals to amend the demonstration:
32	(a) Provider Rates -- Adjustments. The Executive Office proposes to:
33	(i) Eliminate hospital payments by the projected increases in hospital rates that would
34	otherwise take-effect during the state fiscal year 2018 and reduce the hospital payments by one
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1	percent on January 1, 2018.
2	(ii) Adjust acuity-based payment rates to nursing facilities and eliminate the annual
3	increase in rates that would otherwise take-effect on October 1, 2017;
4	(iii) Change the acuity-based policy adjustor for payments to hospitals for behavioral
5	health services; and
6	(iv) Reduce rates for Medicaid managed care plan administration.
7	Implementation of adjustments may require amendments to the Rhode Island’s Medicaid
8	State Plan and/or Section 1115 waiver under the terms and conditions of the demonstration.
9	Further, adoption of new or amended rules, regulations and procedures may also be required.
10	(b) Beneficiary Liability Collection Enhancements – Federal laws and regulations require
11	beneficiaries who are receiving Medicaid-funded long-term services and supports (LTSS) to pay
12	a portion of their income toward in the cost of care. The Executive Office is seeking to enhance
13	the agency’s capacity to collect these payments in a timely and equitable manner. The Executive
14	Office may require federal State Plan and/or waiver authority to implement these enhancements.
15	Amended rules, regulations and procedures may also be required.
16	(c) Community Health Centers – Alternative payment methodology. To pursue more
17	transparent, better coordinated, and cost-effective care delivery, the Executive Office proposes to
18	revise the Rhode Island’s Principles of Reimbursement for Federally Qualified Health Centers, as
19	amended July 2012, to include in its monthly capitation payments to the health plans the total cost
20	of providing care to the Medicaid plan members the Community Health Centers serve. Pursuing
21	such revisions may also require amendments to the Medicaid state plan and/or other federal
22	authorities.
23	(d) Healthy Aging Initiative and LTSS System Reform. The Executive Office proposes to
24	further the goals of the Healthy Aging Initiative and LTSS system rebalancing by pursuing:
25	(i) Integrated Care Initiative (ICI) – Demonstration amendment. New enrollment
26	patterns in managed care and fee-for-services Medicaid that will promote the Healthy Aging
27	Initiative goals of achieving greater utilization of home and community-based long-term services
28	and supports options.
29	(ii) Process Review and Reform. A review of access to Medicaid-funded LTSS for the
30	purpose of reforming existing processes to streamline eligibility determination procedures,
31	promote options counseling and person-centered planning, and to further the goals of rebalancing
32	the LTSS system while preserving service quality, choice and cost-effectiveness.
33	Implementation of these changes may require Section 1115 waiver authority under the
34	terms and conditions of the demonstration. New and/or amended rules, regulations and
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1	procedures may also be necessary to implement this proposal. Accordingly, the Executive Office
2	may require State Plan or the Section 1115 waiver to foster greater access to home and
3	community-based services. Implementation of such changes may also require the adoption of
4	rules, regulations and/or procedures.
5	(e) Adult Dental Services – Delivery system reform. The Executive Office proposes to
6	change the payment and delivery system for adult dental services, including rates for oral surgery.
7	Changes to the Medicaid State Plan and the Section 1115 waiver are required to implement these
8	reforms. New and/or amended rules, regulations and procedures may also be necessary.
9	(f) Estate Recoveries and Liens. Proposed changes in Executive Office policies pertaining
10	to estate recoveries and liens may require new or amended State Plan and/or Section 1115 waiver
11	authorities. Implementation of these changes may also require new and/or amended rules,
12	regulations and procedures.
13	(g) Asthma Treatment -- Home Asthma Response Program (HARP). HARP is an
14	evidence-based asthma intervention program designed to reduce preventable asthma emergency
15	department visits and hospitalization among high risk pediatric asthma patients. To obtain
16	Medicaid financial participation for implementation of HARP, the Executive Office may be
17	required to adopt State Plan amendments and/or additional authorities under the terms of the
18	Rhode Island’s Section 1115 demonstration waiver.
19	(h) Centers of Excellence (COEs) – Opioid Treatment. The Executive Office proposes
20	to establish a COE to promote best practices in the prevention and treatment of the Rhode
21	Islanders who are addicted to opioids. Pursuing the establishment of COEs financed in part by
22	federal matching Medicaid funds requires certain amendments to the Medicaid State Plan and
23	may necessitate adoption of new or amended waiver authorities, rules, regulations and
24	procedures.
25	(i) Federal Financing Opportunities. The Executive Office proposes to review Medicaid
26	requirements and opportunities under the U.S. Patient Protection and Affordable Care Act of
27	2010 (PPACA) and various other recently enacted federal laws and pursue any changes in the
28	Rhode Island Medicaid program that promote service quality, access and cost-effectiveness that
29	may warrant a Medicaid State Plan amendment or amendment under the terms and conditions of
30	Rhode Island’s Section 1115 Waiver, its successor, or any extension thereof. Any such actions
31	by the Executive Office shall not have an adverse impact on beneficiaries or cause there to be an
32	increase in expenditures beyond the amount appropriated for state fiscal year 2018.
33	Now, therefore, be it: RESOLVED, the General Assembly hereby approves proposals
34	and be it further;
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1	RESOLVED, the Secretary of the Executive Office is authorized to pursue and
2	implement any waiver amendments, State Plan amendments, and/or changes to the applicable
3	department’s rules, regulations and procedures approved herein and as authorized by 42-12.4-7;
4	and be it further
5	RESOLVED, that this Joint Resolution shall take effect upon passage.
6	SECTION 2. This article shall take effect upon passage.
7	ARTICLE 13
8	RELATING TO MEDICAL ASSISTANCE AND UNCOMPENSATED CARE
9	SECTION 1. Sections 40-8-13.4, 40-8-19 and 40-8-26 of the General Laws in Chapter
10	40-8 entitled “Medical Assistance” are hereby amended to read as follows:
11	40-8-13.4. Rate methodology for payment for in state and out of state hospital
12	services.
13	(a) The executive office of health and human services ("executive office") shall
14	implement a new methodology for payment for in-state and out-of-state hospital services in order
15	to ensure access to, and the provision of, high-quality and cost-effective hospital care to its
16	eligible recipients.
17	(b) In order to improve efficiency and cost effectiveness, the executive office shall:
18	(1)(i) With respect to inpatient services for persons in fee-for-service Medicaid, which is
19	non-managed care, implement a new payment methodology for inpatient services utilizing the
20	Diagnosis Related Groups (DRG) method of payment, which is a patient-classification method
21	that provides a means of relating payment to the hospitals to the type of patients cared for by the
22	hospitals. It is understood that a payment method based on DRG may include cost outlier
23	payments and other specific exceptions. The executive office will review the DRG-payment
24	method and the DRG base price annually, making adjustments as appropriate in consideration of
25	such elements as trends in hospital input costs; patterns in hospital coding; beneficiary access to
26	care; and the Centers for Medicare and Medicaid Services national CMS Prospective Payment
27	System (IPPS) Hospital Input Price index. For the twelve-month (12) period beginning July 1,
28	2015, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall not exceed
29	ninety-seven and one-half percent (97.5%) of the payment rates in effect as of July 1, 2014. For
30	the six (6) month period beginning January 1, 2018, the DRG base rate for Medicaid fee-for-
31	service inpatient hospital services shall not exceed ninety-nine percent (99.0%) of the payment
32	rates in effect as of July 1, 2017.
33	(ii) With respect to inpatient services, (A) It is required as of January 1, 2011 until
34	December 31, 2011, that the Medicaid managed care payment rates between each hospital and
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1	health plan shall not exceed ninety and one tenth percent (90.1%) of the rate in effect as of June
2	30, 2010. Negotiated increases in inpatient hospital payments for each annual twelve-month (12)
3	period beginning January 1, 2012 may not exceed the Centers for Medicare and Medicaid
4	Services national CMS Prospective Payment System (IPPS) Hospital Input Price index for the
5	applicable period; (B) Provided, however, for the twenty-four-month (24) period beginning July
6	1, 2013, the Medicaid managed care payment rates between each hospital and health plan shall
7	not exceed the payment rates in effect as of January 1, 2013, and for the twelve-month (12)
8	period beginning July 1, 2015, the Medicaid managed-care payment inpatient rates between each
9	hospital and health plan shall not exceed ninety-seven and one-half percent (97.5%) of the
10	payment rates in effect as of January 1, 2013; (C) Negotiated increases in inpatient hospital
11	payments for each annual twelve-month (12) period beginning July 1, 2016, may not exceed the
12	Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS)
13	Hospital Input Price Index, less Productivity Adjustment, for the applicable period; (D) For the
14	six (6) month period beginning July 1, 2017, the Medicaid managed care payment inpatient rates
15	between each hospital and health plan shall not exceed ninety-nine percent (99.0%) of the
16	payment rates in effect as of July 1, 2017; (D E) The executive office will develop an audit
17	methodology and process to assure that savings associated with the payment reductions will
18	accrue directly to the Rhode Island Medicaid program through reduced managed-care-plan
19	payments and shall not be retained by the managed-care plans; (E F) All hospitals licensed in
20	Rhode Island shall accept such payment rates as payment in full; and (F G) For all such hospitals,
21	compliance with the provisions of this section shall be a condition of participation in the Rhode
22	Island Medicaid program.
23	(2) With respect to outpatient services and notwithstanding any provisions of the law to
24	the contrary, for persons enrolled in fee-for-service Medicaid, the executive office will reimburse
25	hospitals for outpatient services using a rate methodology determined by the executive office and
26	in accordance with federal regulations. Fee-for-service outpatient rates shall align with Medicare
27	payments for similar services. Notwithstanding the above, there shall be no increase in the
28	Medicaid fee-for-service outpatient rates effective on July 1, 2013, July 1, 2014, or July 1, 2015.
29	For the twelve-month (12) period beginning July 1, 2015, Medicaid fee-for-service outpatient
30	rates shall not exceed ninety-seven and one-half percent (97.5%) of the rates in effect as of July 1,
31	2014. For the six (6) month period beginning January 1, 2018, Medicaid fee-for-service
32	outpatient rates shall not exceed ninety-nine percent (99.0%) of the rates in effect as of July 1,
33	2017. Thereafter, increases in the outpatient hospital payments for each annual twelve-month
34	(12) period beginning July 1, 20167, may not exceed the CMS national Outpatient Prospective
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1	Payment System (OPPS) Hospital Input Price Index for the applicable period. With respect to the
2	outpatient rate,
3	(i) It is required as of January 1, 2011, until December 31, 2011, that the Medicaid
4	managed-care payment rates between each hospital and health plan shall not exceed one hundred
5	percent (100%) of the rate in effect as of June 30, 2010;
6	(ii) Negotiated increases in hospital outpatient payments for each annual twelve-month
7	(12) period beginning January 1, 2012, may not exceed the Centers for Medicare and Medicaid
8	Services national CMS Outpatient Prospective Payment System OPPS hospital price index for the
9	applicable period;
10	(iii) Provided, however, for the twenty-four-month (24) period beginning July 1, 2013,
11	the Medicaid managed-care outpatient payment rates between each hospital and health plan shall
12	not exceed the payment rates in effect as of January 1, 2013, and for the twelve-month (12)
13	period beginning July 1, 2015, the Medicaid managed-care outpatient payment rates between
14	each hospital and health plan shall not exceed ninety-seven and one-half percent (97.5%) of the
15	payment rates in effect as of January 1, 2013;
16	(iv) For the six (6) month period beginning January 1, 2018, the Medicaid managed care
17	outpatient payment rates between each hospital and health plan shall not exceed ninety-nine
18	percent (99.0%) of the payment rates in effect as of July 1, 2017;
19	(v) Negotiated increases in outpatient hospital payments for each annual twelve-month
20	(12) period beginning July 1, 20168, may not exceed the Centers for Medicare and Medicaid
21	Services national CMS OPPS Hospital Input Price Index, less Productivity Adjustment, for the
22	applicable period.
23	(3) "Hospital", as used in this section, shall mean the actual facilities and buildings in
24	existence in Rhode Island, licensed pursuant to 23-17-1 et seq. on June 30, 2010, and thereafter
25	any premises included on that license, regardless of changes in licensure status pursuant to
26	chapter 17.14 of title 23 (hospital conversions) and 23-17-6(b) (change in effective control), that
27	provides short-term, acute inpatient and/or outpatient care to persons who require definitive
28	diagnosis and treatment for injury, illness, disabilities, or pregnancy. Notwithstanding the
29	preceding language, the negotiated Medicaid managed care payment rates for a court-approved
30	purchaser that acquires a hospital through receivership, special mastership or other similar state
31	insolvency proceedings (which court-approved purchaser is issued a hospital license after January
32	1, 2013) shall be based upon the newly negotiated rates between the court-approved purchaser
33	and the health plan, and such rates shall be effective as of the date that the court-approved
34	purchaser and the health plan execute the initial agreement containing the newly negotiated rate.
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1	The rate-setting methodology for inpatient-hospital payments and outpatient-hospital payments
2	set forth in subdivisions (b)(1)(ii)(C) and (b)(2), respectively, shall thereafter apply to negotiated
3	increases for each annual twelve-month (12) period as of July 1 following the completion of the
4	first full year of the court-approved purchaser's initial Medicaid managed care contract.
5	(c) It is intended that payment utilizing the DRG method shall reward hospitals for
6	providing the most efficient care, and provide the executive office the opportunity to conduct
7	value-based purchasing of inpatient care.
8	(d) The secretary of the executive office is hereby authorized to promulgate such rules
9	and regulations consistent with this chapter, and to establish fiscal procedures he or she deems
10	necessary, for the proper implementation and administration of this chapter in order to provide
11	payment to hospitals using the DRG-payment methodology. Furthermore, amendment of the
12	Rhode Island state plan for Medicaid, pursuant to Title XIX of the federal Social Security Act, is
13	hereby authorized to provide for payment to hospitals for services provided to eligible recipients
14	in accordance with this chapter.
15	(e) The executive office shall comply with all public notice requirements necessary to
16	implement these rate changes.
17	(f) As a condition of participation in the DRG methodology for payment of hospital
18	services, every hospital shall submit year-end settlement reports to the executive office within one
19	year from the close of a hospital's fiscal year. Should a participating hospital fail to timely submit
20	a year-end settlement report as required by this section, the executive office shall withhold
21	financial-cycle payments due by any state agency with respect to this hospital by not more than
22	ten percent (10%) until said report is submitted. For hospital fiscal year 2010 and all subsequent
23	fiscal years, hospitals will not be required to submit year-end settlement reports on payments for
24	outpatient services. For hospital fiscal year 2011 and all subsequent fiscal years, hospitals will not
25	be required to submit year-end settlement reports on claims for hospital inpatient services.
26	Further, for hospital fiscal year 2010, hospital inpatient claims subject to settlement shall include
27	only those claims received between October 1, 2009, and June 30, 2010.
28	(g) The provisions of this section shall be effective upon implementation of the new
29	payment methodology set forth in this section and 40-8-13.3, which shall in any event be no later
30	than March 30, 2010, at which time the provisions of §40-8-13.2, 27-19-14, 27-19-15, and 27-19-
31	16 shall be repealed in their entirety.
32	40-8-19. Rates of payment to nursing facilities.
33	(a) Rate reform. (1) The rates to be paid by the state to nursing facilities licensed
34	pursuant to chapter 17 of title 23, and certified to participate in the Title XIX Medicaid program
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1	for services rendered to Medicaid-eligible residents, shall be reasonable and adequate to meet the
2	costs that must be incurred by efficiently and economically operated facilities in accordance with
3	42 U.S.C. §1396a(a)(13). The executive office of health and human services ("executive office")
4	shall promulgate or modify the principles of reimbursement for nursing facilities in effect as of
5	July 1, 2011 to be consistent with the provisions of this section and Title XIX, 42 U.S.C. 1396 et
6	seq., of the Social Security Act.
7	(2) The executive office shall review the current methodology for providing Medicaid
8	payments to nursing facilities, including other long-term care services providers, and is
9	authorized to modify the principles of reimbursement to replace the current cost based
10	methodology rates with rates based on a price based methodology to be paid to all facilities with
11	recognition of the acuity of patients and the relative Medicaid occupancy, and to include the
12	following elements to be developed by the executive office:
13	(i) A direct care rate adjusted for resident acuity;
14	(ii) An indirect care rate comprised of a base per diem for all facilities;
15	(iii) A rearray of costs for all facilities every three (3) years beginning October, 2015, that
16	may or may not result in automatic per diem revisions;
17	(iv) Application of a fair rental value system;
18	(v) Application of a pass-through system; and
19	(vi) Adjustment of rates by the change in a recognized national nursing home inflation
20	index to be applied on October 1st of each year, beginning October 1, 2012. This adjustment will
21	not occur on October 1, 2013 or October 1, 2015, but will occur on April 1, 2015. The adjustment
22	of rates will also not occur on October 1, 2017. Said inflation index shall be applied without
23	regard for the transition factor in subsection (b)(2) below. For purposes of October 1, 2016,
24	adjustment only, any rate increase that results from application of the inflation index to
25	subparagraphs (a)(2)(i) and (a)(2)(ii) shall be dedicated to increase compensation for direct-care
26	workers in the following manner: Not less than 85% of this aggregate amount shall be expended
27	to fund an increase in wages, benefits, or related employer costs of direct-care staff of nursing
28	homes. For purposes of this section, direct-care staff shall include registered nurses (RNs),
29	licensed practical nurses (LPNs), certified nursing assistants (CNAs), certified medical
30	technicians, housekeeping staff, laundry staff, dietary staff, or other similar employees providing
31	direct care services; provided, however, that this definition of direct-care staff shall not include:
32	(i) RNs and LPNs who are classified as "exempt employees" under the Federal Fair Labor
33	Standards Act (29 U.S.C. 201 et seq.); or (ii) CNAs, certified medical technicians, RNs, or LPNs
34	who are contracted, or subcontracted, through a third-party vendor or staffing agency. By July 31,
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1	2017, nursing facilities shall submit to the secretary, or designee, a certification that they have
2	complied with the provisions of this subparagraph (a)(2)(vi) with respect to the inflation index
3	applied on October 1, 2016. Any facility that does not comply with terms of such certification
4	shall be subjected to a clawback, paid by the nursing facility to the state, in the amount of
5	increased reimbursement subject to this provision that was not expended in compliance with that
6	certification.
7	(vii) Effective on and after July 1, 2017, modify the reimbursement methodology through
8	the implementation of acuity-based policy adjustors.
9	(b) Transition to full implementation of rate reform. For no less than four (4) years after
10	the initial application of the price-based methodology described in subdivision (a)(2) to payment
11	rates, the executive office of health and human services shall implement a transition plan to
12	moderate the impact of the rate reform on individual nursing facilities. Said transition shall
13	include the following components:
14	(1) No nursing facility shall receive reimbursement for direct-care costs that is less than
15	the rate of reimbursement for direct-care costs received under the methodology in effect at the
16	time of passage of this act; for the year beginning October 1, 2017, the reimbursement for direct-
17	care costs under this provision will be phased out in twenty-five-percent (25%) increments each
18	year until October 1, 2021, when the reimbursement will no longer be in effect. No nursing
19	facility shall receive reimbursement for direct care costs that is less than the rate of
20	reimbursement for direct care costs received under the methodology in effect at the time of
21	passage of this act; and
22	(2) No facility shall lose or gain more than five dollars ($5.00) in its total per diem rate
23	the first year of the transition. An adjustment to the per diem loss or gain may be phased out by
24	twenty-five percent (25%) each year; except, however, for the years beginning October 1, 2015,
25	there shall be no adjustment to the per diem gain or loss, but the phase out shall resume
26	thereafter; and
27	(3) The transition plan and/or period may be modified upon full implementation of
28	facility per diem rate increases for quality of care related measures. Said modifications shall be
29	submitted in a report to the general assembly at least six (6) months prior to implementation.
30	(4) Notwithstanding any law to the contrary, for the twelve (12) month period beginning
31	July 1, 2015, Medicaid payment rates for nursing facilities established pursuant to this section
32	shall not exceed ninety-eight percent (98%) of the rates in effect on April 1, 2015.
33	40-8-26. Community health centers.
34	(a) For the purposes of this section the term community health centers refers to federally
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1	qualified health centers and rural health centers.
2	(b) To support the ability of community health centers to provide high quality medical
3	care to patients, the department of human services executive office of health and human services
4	(“executive office”) shall adopt and implement a methodology for determining a Medicaid per
5	visit reimbursement for community health centers which is compliant with the prospective
6	payment system provided for in the Medicare, Medicaid and SCHIP Benefits Improvement and
7	Protection Act of 2001. The following principles are to assure that the prospective payment rate
8	determination methodology is part of the department of human services' executive office overall
9	value purchasing approach.
10	(c) The rate determination methodology will (i) fairly recognize the reasonable costs of
11	providing services. Recognized reasonable costs will be those appropriate for the organization,
12	management and direct provision of services and (ii) provide assurances to the department of
13	human services executive office that services are provided in an effective and efficient manner,
14	consistent with industry standards. Except for demonstrated cause and at the discretion of the
15	department of human services executive office, the maximum reimbursement rate for a service
16	(e.g. medical, dental) provided by an individual community health center shall not exceed one
17	hundred twenty-five percent (125%) of the median rate for all community health centers within
18	Rhode Island.
19	(d) Community health centers will cooperate fully and timely with reporting requirements
20	established by the department executive office.
21	(e) Reimbursement rates established through this methodology shall be incorporated into
22	the PPS reconciliation for services provided to Medicaid eligible persons who are enrolled in a
23	health plan on the date of service. Monthly payments by DHS the executive office related to PPS
24	for persons enrolled in a health plan shall be made directly to the community health centers.
25	(f) Reimbursement rates established through this methodology shall be incorporated into
26	the PPS reconciliation for services provided to Medicaid eligible persons who are enrolled in a
27	health plan on the date of service. Monthly payments by DHS related to PPS for persons enrolled
28	in a health plan shall be made directly to the community health centers actuarially certified
29	capitation rates paid to a health plan. The health plan shall be responsible for paying the full
30	amount of the reimbursement rate to the community health center for each service eligible for
31	reimbursement under the Medicare, Medicaid and SCHIP Benefits Improvement and Protection
32	Act of 2001. If the health plan has an alternative payment arrangement with the community health
33	center the health plan may establish a PPS reconciliation process for eligible services and make
34	monthly payments related to PPS for person enrolled in the health plan on the date of service. The
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1	executive office will review, at least annually, the Medicaid reimbursement rates and
2	reconciliation methodology used by the health plans for community health centers to ensure
3	payments to each are made in compliance with the Medicare, Medicaid and SCHIP Benefits
4	Improvement and Protection Act of 2001.
5	SECTION 2. Sections 40-8.3-2 and 40-8.3-10 of the General Laws in Chapter 40-8.3
6	entitled “Uncompensated Care” are hereby amended to read as follows:
7	40-8.3-2. Definitions.
8	As used in this chapter:
9	(1) "Base year" means, for the purpose of calculating a disproportionate share payment
10	for any fiscal year ending after September 30, 2015, the period from October 1, 2013, through
11	September 30, 2014, and for any fiscal year ending after September 30, 2016, the period from
12	October 1, 2014, through September 30, 2015.
13	(2) "Medicaid inpatient utilization rate for a hospital" means a fraction (expressed as a
14	percentage), the numerator of which is the hospital's number of inpatient days during the base
15	year attributable to patients who were eligible for medical assistance during the base year and the
16	denominator of which is the total number of the hospital's inpatient days in the base year.
17	(3) "Participating hospital" means any government or nongovernment and psychiatric or
18	non-psychiatric hospital that:
19	(i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base
20	year and shall mean the actual facilities and buildings in existence in Rhode Island, licensed
21	pursuant to 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license,
22	regardless of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital
23	conversions) and 23-17-6(b) (change in effective control), that provides short-term acute inpatient
24	and/or outpatient care to persons who require definitive diagnosis and treatment for injury,
25	illness, disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated
26	Medicaid managed care payment rates for a court-approved purchaser that acquires a hospital
27	through receivership, special mastership, or other similar state insolvency proceedings (which
28	court-approved purchaser is issued a hospital license after January 1, 2013) shall be based upon
29	the newly negotiated rates between the court-approved purchaser and the health plan, and such
30	rates shall be effective as of the date that the court-approved purchaser and the health plan
31	execute the initial agreement containing the newly negotiated rate. The rate-setting methodology
32	for inpatient hospital payments and outpatient hospital payments set forth in §40-8-
33	13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases
34	for each annual twelve-month (12) period as of July 1 following the completion of the first full
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1	year of the court-approved purchaser's initial Medicaid managed care contract.
2	(ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%)
3	during the base year; and
4	(iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during
5	the payment year.
6	(4) "Uncompensated-care costs" means, as to any hospital, the sum of: (i) The cost
7	incurred by such hospital during the base year for inpatient or outpatient services attributable to
8	charity care (free care and bad debts) for which the patient has no health insurance or other third-
9	party coverage less payments, if any, received directly from such patients; and (ii) The cost
10	incurred by such hospital during the base year for inpatient or out-patient services attributable to
11	Medicaid beneficiaries less any Medicaid reimbursement received therefor; multiplied by the
12	uncompensated care index.
13	(5) "Uncompensated-care index" means the annual percentage increase for hospitals
14	established pursuant to 27-19-14 for each year after the base year, up to and including the
15	payment year, provided, however, that the uncompensated-care index for the payment year
16	ending September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent
17	(5.38%), and that the uncompensated-care index for the payment year ending September 30,
18	2008, shall be deemed to be five and forty-seven hundredths percent (5.47%), and that the
19	uncompensated-care index for the payment year ending September 30, 2009, shall be deemed to
20	be five and thirty-eight hundredths percent (5.38%), and that the uncompensated-care index for
21	the payment years ending September 30, 2010, September 30, 2011, September 30, 2012,
22	September 30, 2013, September 30, 2014, September 30, 2015, September 30, 2016, and
23	September 30, 2017, shall be deemed to be five and thirty hundredths percent (5.30%).
24	40-8.3-10. Hospital adjustment payments.
25	Effective July 1, 2012 and for each subsequent year, the executive office of health and
26	human services is hereby authorized and directed to amend its regulations for reimbursement to
27	hospitals for inpatient and outpatient services as follows:
28	(a) Each hospital in the state of Rhode Island, as defined in subdivision 23-17-38.1(c)(1),
29	shall receive a quarterly outpatient adjustment payment each state fiscal year of an amount
30	determined as follows:
31	(1) Determine the percent of the state's total Medicaid outpatient and emergency
32	department services (exclusive of physician services) provided by each hospital during each
33	hospital's prior fiscal year;
34	(2) Determine the sum of all Medicaid payments to hospitals made for outpatient and
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1	emergency department services (exclusive of physician services) provided during each hospital's
2	prior fiscal year;
3	(3) Multiply the sum of all Medicaid payments as determined in subdivision (2) by a
4	percentage defined as the total identified upper payment limit for all hospitals divided by the sum
5	of all Medicaid payments as determined in subdivision (2); and then multiply that result by each
6	hospital's percentage of the state's total Medicaid outpatient and emergency department services
7	as determined in subdivision (1); and then multiply the immediately preceding result by fifty
8	percent (50%) to obtain the total outpatient adjustment for each hospital to be paid each year;
9	(4) Pay each hospital on or before July 20, October 20, January 20, and April 20 one
10	quarter (1/4) of its total outpatient adjustment as determined in subdivision (3) above.
11	(b) Each hospital in the state of Rhode Island, as defined in subdivision 3-17-38.19(b)(1),
12	shall receive a quarterly inpatient adjustment payment each state fiscal year of an amount
13	determined as follows:
14	(1) Determine the percent of the state's total Medicaid inpatient services (exclusive of
15	physician services) provided by each hospital during each hospital's prior fiscal year;
16	(2) Determine the sum of all Medicaid payments to hospitals made for inpatient services
17	(exclusive of physician services) provided during each hospital's prior fiscal year;
18	(3) Multiply the sum of all Medicaid payments as determined in subdivision (2) by a
19	percentage defined as the total identified upper payment limit for all hospitals divided by the sum
20	of all Medicaid payments as determined in subdivision (2); and then multiply that result by each
21	hospital's percentage of the state's total Medicaid inpatient services as determined in subdivision
22	(1); and then multiply the immediately preceding result by fifty percent (50%) to obtain the total
23	inpatient adjustment for each hospital to be paid each year;
24	(4) Pay each hospital on or before July 20, October 20, January 20, and April 20 one
25	quarter (1/4) of its total inpatient adjustment as determined in subdivision (3) above.
26	(c) The amounts determined in subsections (a) and (b) are in addition to Medicaid
27	inpatient and outpatient payments and emergency services payments (exclusive of physician
28	services) paid to hospitals in accordance with current state regulation and the Rhode Island Plan
29	for Medicaid Assistance pursuant to Title XIX of the Social Security Act and are not subject to
30	recoupment or settlement.
31	SECTION 3. Section 40-8.9-9 of the General Laws in Chapter 40-8.9 entitled “Medical
32	Assistance - Long-Term Care Service and Finance Reform” are hereby amended to read as
33	follows:
34	40-8.9-9. Long-term care re-balancing system reform goal.
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1	(a) Notwithstanding any other provision of state law, the executive office of health and
2	human services is authorized and directed to apply for and obtain any necessary waiver(s), waiver
3	amendment(s) and/or state plan amendments from the secretary of the United States department
4	of health and human services, and to promulgate rules necessary to adopt an affirmative plan of
5	program design and implementation that addresses the goal of allocating a minimum of fifty
6	percent (50%) of Medicaid long-term care funding for persons aged sixty-five (65) and over and
7	adults with disabilities, in addition to services for persons with developmental disabilities , to
8	home and community-based care ; provided, further, the executive office shall report annually as
9	part of its budget submission, the percentage distribution between institutional care and home and
10	community-based care by population and shall report current and projected waiting lists for long-
11	term care and home and community-based care services. The executive office is further
12	authorized and directed to prioritize investments in home and community- based care and to
13	maintain the integrity and financial viability of all current long-term care services while pursuing
14	this goal.
15	(b) The reformed long-term care system re-balancing goal is person-centered and
16	encourages individual self-determination, family involvement, interagency collaboration, and
17	individual choice through the provision of highly specialized and individually tailored home-
18	based services. Additionally, individuals with severe behavioral, physical, or developmental
19	disabilities must have the opportunity to live safe and healthful lives through access to a wide
20	range of supportive services in an array of community-based settings, regardless of the
21	complexity of their medical condition, the severity of their disability, or the challenges of their
22	behavior. Delivery of services and supports in less costly and less restrictive community settings,
23	will enable children, adolescents, and adults to be able to curtail, delay, or avoid lengthy stays in
24	long-term care institutions, such as behavioral health residential treatment facilities, long- term
25	care hospitals, intermediate care facilities and/or skilled nursing facilities.
26	(c) Pursuant to federal authority procured under 42-7.2-16 of the general laws, the
27	executive office of health and human services is directed and authorized to adopt a tiered set of
28	criteria to be used to determine eligibility for services. Such criteria shall be developed in
29	collaboration with the state's health and human services departments and, to the extent feasible,
30	any consumer group, advisory board, or other entity designated for such purposes, and shall
31	encompass eligibility determinations for long-term care services in nursing facilities, hospitals,
32	and intermediate care facilities for persons with intellectual disabilities as well as home and
33	community-based alternatives, and shall provide a common standard of income eligibility for
34	both institutional and home and community- based care. The executive office is authorized to
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1	adopt clinical and/or functional criteria for admission to a nursing facility, hospital, or
2	intermediate care facility for persons with intellectual disabilities that are more stringent than
3	those employed for access to home and community-based services. The executive office is also
4	authorized to promulgate rules that define the frequency of re- assessments for services provided
5	for under this section. Levels of care may be applied in accordance with the following:
6	(1) The executive office shall continue to apply the level of care criteria in effect on June
7	30, 2015 for any recipient determined eligible for and receiving Medicaid-funded long-term
8	services in supports in a nursing facility, hospital, or intermediate care facility for persons with
9	intellectual disabilities on or before that date, unless:
10	(a) the recipient transitions to home and community based services because he or she
11	would no longer meet the level of care criteria in effect on June 30, 2015; or
12	(b) the recipient chooses home and community-based services over the nursing facility,
13	hospital, or intermediate care facility for persons with intellectual disabilities. For the purposes of
14	this section, a failed community placement, as defined in regulations promulgated by the
15	executive office, shall be considered a condition of clinical eligibility for the highest level of care.
16	The executive office shall confer with the long-term care ombudsperson with respect to the
17	determination of a failed placement under the ombudsperson's jurisdiction. Should any Medicaid
18	recipient eligible for a nursing facility, hospital, or intermediate care facility for persons with
19	intellectual disabilities as of June 30, 2015, receive a determination of a failed community
20	placement, the recipient shall have access to the highest level of care; furthermore, a recipient
21	who has experienced a failed community placement shall be transitioned back into his or her
22	former nursing home, hospital, or intermediate care facility for persons with intellectual
23	disabilities whenever possible. Additionally, residents shall only be moved from a nursing home,
24	hospital, or intermediate care facility for persons with intellectual disabilities in a manner
25	consistent with applicable state and federal laws.
26	(2) Any Medicaid recipient eligible for the highest level of care who voluntarily leaves a
27	nursing home, hospital, or intermediate care facility for persons with intellectual disabilities shall
28	not be subject to any wait list for home and community-based services.
29	(3) No nursing home, hospital, or intermediate care facility for persons with intellectual
30	disabilities shall be denied payment for services rendered to a Medicaid recipient on the grounds
31	that the recipient does not meet level of care criteria unless and until the executive office has:
32	(i) performed an individual assessment of the recipient at issue and provided written
33	notice to the nursing home, hospital, or intermediate care facility for persons with intellectual
34	disabilities that the recipient does not meet level of care criteria; and
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1	(ii) the recipient has either appealed that level of care determination and been
2	unsuccessful, or any appeal period available to the recipient regarding that level of care
3	determination has expired.
4	(d) The executive office is further authorized to consolidate all home and community-
5	based services currently provided pursuant to 1915( c) of title XIX of the United States Code into
6	a single system of home and community- based services that include options for consumer
7	direction and shared living. The resulting single home and community-based services system
8	shall replace and supersede all §1915(c) programs when fully implemented. Notwithstanding the
9	foregoing, the resulting single program home and community-based services system shall include
10	the continued funding of assisted living services at any assisted living facility financed by the
11	Rhode Island housing and mortgage finance corporation prior to January 1, 2006, and shall be in
12	accordance with chapter 66.8 of title 42 of the general laws as long as assisted living services are
13	a covered Medicaid benefit.
14	(e) The executive office is authorized to promulgate rules that permit certain optional
15	services including, but not limited to, homemaker services, home modifications, respite, and
16	physical therapy evaluations to be offered to persons at risk for Medicaid-funded long-term care
17	subject to availability of state-appropriated funding for these purposes.
18	(f) To promote the expansion of home and community-based service capacity, the
19	executive office is authorized to pursue payment methodology reforms that increase access to
20	homemaker, personal care (home health aide), assisted living, adult supportive care homes, and
21	adult day services, as follows:
22	(1) Development, of revised or new Medicaid certification standards that increase access
23	to service specialization and scheduling accommodations by using payment strategies designed to
24	achieve specific quality and health outcomes.
25	(2) Development of Medicaid certification standards for state authorized providers of
26	adult day services, excluding such providers of services authorized under 40.1-24-1(3), assisted
27	living, and adult supportive care (as defined under 23-17.24) that establish for each, an acuity-
28	based, tiered service and payment methodology tied to: licensure authority, level of beneficiary
29	needs; the scope of services and supports provided; and specific quality and outcome measures.
30	The standards for adult day services for persons eligible for Medicaid-funded long-term
31	services may differ from those who do not meet the clinical/functional criteria set forth in 40-
32	8.10-3.
33	(3) By October 1, 2016, institute an increase in the base-payment rates for home-care
34	service providers, in an amount to be determined through the appropriations process, for the
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1	purpose of implementing a wage pass-through program for personal-care attendants and home
2	health aides assisting long-term-care beneficiaries. On or before September 1, 2016, Medicaid-
3	funded home health providers seeking to participate in the program shall submit to the secretary,
4	for his or her approval, a written plan describing and attesting to the manner in which the
5	increased payment rates shall be passed through to personal-care attendants and home health
6	aides in their salaries or wages less any attendant costs incurred by the provider for additional
7	payroll taxes, insurance contributions, and other costs required by federal or state law, regulation,
8	or policy and directly attributable to the wage pass-through program established in this section.
9	Any such providers contracting with a Medicaid managed-care organization shall develop the
10	plan for the wage pass-through program in conjunction with the managed-care entity and shall
11	include an assurance by the provider that the base-rate increase is implemented in accordance
12	with the goal of raising the wages of the health workers targeted in this subsection. Participating
13	providers who do not comply with the terms of their wage pass-through plan shall be subject to a
14	clawback, paid by the provider to the state, for any portion of the rate increase administered under
15	this section that the secretary deems appropriate. As the state’s Medicaid program seeks to assist
16	more beneficiaries requiring long-term services and supports in home and community-based
17	settings, the demand for home care workers has increased, and wages for these workers has not
18	kept pace with neighboring states, leading to high turnover and vacancy rates in the state’s home
19	care industry, the EOHHS shall institute a one-time increase in the base-payment rates for home-
20	care service providers to promote increased access to and an adequate supply of highly trained
21	home health care professionals, in amount to be determined by the appropriations process, for the
22	purpose of raising wages for personal care attendants and home health aides to be implemented
23	by such providers: (i) by October 1, 2017, and (ii) in a manner that meets specifications related to
24	implementation and reporting approved by the secretary.
25	(g) The executive office shall implement a long-term care options counseling program to
26	provide individuals, or their representatives, or both, with long-term care consultations that shall
27	include, at a minimum, information about: long-term care options, sources, and methods of both
28	public and private payment for long-term care services and an assessment of an individual's
29	functional capabilities and opportunities for maximizing independence. Each individual admitted
30	to, or seeking admission to a long-term care facility, regardless of the payment source, shall be
31	informed by the facility of the availability of the long-term care options counseling program and
32	shall be provided with long-term care options consultation if they so request. Each individual who
33	applies for Medicaid long-term care services shall be provided with a long-term care consultation.
34	(h) The executive office is also authorized, subject to availability of appropriation of
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1	funding, and federal Medicaid-matching funds, to pay for certain services and supports necessary
2	to transition or divert beneficiaries from institutional or restrictive settings and optimize their
3	health and safety when receiving care in a home or the community . The secretary is authorized to
4	obtain any state plan or waiver authorities required to maximize the federal funds available to
5	support expanded access to such home and community transition and stabilization services;
6	provided, however, payments shall not exceed an annual or per person amount.
7	(i) To ensure persons with long-term care needs who remain living at home have
8	adequate resources to deal with housing maintenance and unanticipated housing related costs, the
9	secretary is authorized to develop higher resource eligibility limits for persons or obtain any state
10	plan or waiver authorities necessary to change the financial eligibility criteria for long-term
11	services and supports to enable beneficiaries receiving home and community waiver services to
12	have the resources to continue living in their own homes or rental units or other home-based
13	settings.
14	(j) The executive office shall implement, no later than January 1, 2016, the following
15	home and community-based service and payment reforms:
16	(1) Community-based supportive living program established in 40-8.13-2.12;
17	(2) Adult day services level of need criteria and acuity-based, tiered payment
18	methodology; and
19	(3) Payment reforms that encourage home and community-based providers to provide the
20	specialized services and accommodations beneficiaries need to avoid or delay institutional care.
21	(k) The secretary is authorized to seek any Medicaid section 1115 waiver or state plan
22	amendments and take any administrative actions necessary to ensure timely adoption of any new
23	or amended rules, regulations, policies, or procedures and any system enhancements or changes,
24	for which appropriations have been authorized, that are necessary to facilitate implementation of
25	the requirements of this section by the dates established. The secretary shall reserve the discretion
26	to exercise the authority established under 42-7.2-5(6)(v) and 42-7.2-6.1, in consultation with the
27	governor, to meet the legislative directives established herein.
28	SECTION 4. Section 42-12-29 of the General Laws in Chapter 42-12 entitled
29	“Department of Human Services” is hereby amended to read as follows:
30	42-12-29. Children's health account.
31	(a) There is created within the general fund a restricted receipt account to be known as
32	the "children's health account." All money in the account shall be utilized by the department of
33	human services executive office of health and human services (“executive office”) to effectuate
34	coverage for the following service categories: (1) home health services, which include pediatric
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1	private duty nursing and certified nursing assistant services; (2) Cedar comprehensive, evaluation,
2	diagnosis, assessment, referral and evaluation (CEDARR) (CEDAR) services, which include
3	CEDARR family center services, home based therapeutic services, personal assistance services
4	and supports (PASS) and kids connect services and (3) child and adolescent treatment services
5	(CAITS). All money received pursuant to this section shall be deposited in the children's health
6	account. The general treasurer is authorized and directed to draw his or her orders on the account
7	upon receipt of properly authenticated vouchers from the department of human services executive
8	office.
9	(b) Beginning January 1, 2016 July 1, 2017, a portion of the amount collected pursuant to
10	42-7.4-3, up to the actual amount expended or projected to be expended by the state for the
11	services described in 42-12-29(a), less any amount collected in excess of the prior year's funding
12	requirement as indicated in 42-12-29(c), but in no event more than the limit set forth in 42-12-
13	29(d) (the "child health services funding requirement"), shall be deposited in the "children's
14	health account.". The funds shall be used solely for the purposes of the "children's health
15	account", and no other.
16	(c) The department of human services executive office shall submit to the general
17	assembly an annual report on the program and costs related to the program, on or before February
18	1 of each year. The department executive office shall make available to each insurer required to
19	make a contribution pursuant to 42-7.4-3, upon its request, detailed information regarding the
20	children's health programs described in subsection (a) and the costs related to those programs.
21	Any funds collected in excess of funds needed to carry out the programs shall be deducted from
22	the subsequent year's funding requirements.
23	(d) The total amount required to be deposited into the children's health account shall be
24	equivalent to the amount paid by the department of human services executive office for all
25	services, as listed in subsection (a), but not to exceed seven thousand five hundred dollars
26	($7,500) twelve thousand five hundred dollars ($12,500) per child per service per year.
27	(e) The children's health account shall be exempt from the indirect cost recovery
28	provisions of 35-4-27 of the general laws.
29	SECTION 5. Section 15 of Article 5 of Chapter 141 of the Public Laws of 2015 is
30	hereby repealed.
31	A pool is hereby established of up to $2.5 million to support Medicaid Graduate
32	Education funding for Academic Medical Centers with level I Trauma Centers who provide care
33	to the state's critically ill and indigent populations. The office of Health and Human Services shall
34	utilize this pool to provide up to $5 million per year in additional Medicaid payments to support
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1	Graduate Medical Education programs to hospitals meeting all of the following criteria:
2	(a) Hospital must have a minimum of 25,000 inpatient discharges per year for all patients
3	regardless of coverage.
4	(b) Hospital must be designated as Level I Trauma Center.
5	(c) Hospital must provide graduate medical education training for at least 250 interns and
6	residents per year.
7	The Secretary of the Executive Office of Health and Human Services shall determine the
8	appropriate Medicaid payment mechanism to implement this program and amend any state plan
9	documents required to implement the payments.
10	Payments for Graduate Medical Education programs shall be made annually.
11	SECTION 6. This article shall take effect upon passage.
12	ARTICLE 14
13	RELATING TO LICENSING OF HOSPITAL FACILITIES
14	SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled
15	“Licensing of Health-Care Facilities” is hereby amended to read as follows:
16	23-17-38.1. Hospitals – Licensing fee.
17	(a) There is also imposed a hospital licensing fee at the rate of five and eight hundred
18	sixty-two thousandths percent (5.862%) upon the net patient services revenue of every hospital
19	for the hospital's first fiscal year ending on or after January 1, 2014, except that the license fee for
20	all hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven
21	percent (37%). The discount for Washington County hospitals is subject to approval by the
22	Secretary of the US Department of Health and Human Services of a state plan amendment
23	submitted by the executive office of health and human services for the purpose of pursuing a
24	waiver of the uniformity requirement for the hospital license fee. This licensing fee shall be
25	administered and collected by the tax administrator, division of taxation within the department of
26	revenue, and all the administration, collection and other provisions of chapter 51 of title 44 shall
27	apply. Every hospital shall pay the licensing fee to the tax administrator on or before July 11,
28	2016 and payments shall be made by electronic transfer of monies to the general treasurer and
29	deposited to the general fund. Every hospital shall, on or before June 13, 2016, make a return to
30	the tax administrator containing the correct computation of net patient services revenue for the
31	hospital fiscal year ending September 30, 2014, and the licensing fee due upon that amount. All
32	returns shall be signed by the hospital's authorized representative, subject to the pains and
33	penalties of perjury.
34	(b)(a) There is also imposed a hospital licensing fee at the rate of five and six hundred
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1	fifty-two thousandths percent (5.652%) upon the net patient-services revenue of every hospital
2	for the hospital's first fiscal year ending on or after January 1, 2015, except that the license fee for
3	all hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven
4	percent (37%). The discount for Washington County hospitals is subject to approval by the
5	Secretary of the U.S. Department of Health and Human Services of a state plan amendment
6	submitted by the executive office of health and human services for the purpose of pursuing a
7	waiver of the uniformity requirement for the hospital license fee. This licensing fee shall be
8	administered and collected by the tax administrator, division of taxation within the department of
9	revenue, and all the administration, collection and other provisions of chapter 51 of title 44 shall
10	apply. Every hospital shall pay the licensing fee to the tax administrator on or before July 10,
11	2017, and payments shall be made by electronic transfer of monies to the general treasurer and
12	deposited to the general fund. Every hospital shall, on or before June 14, 2017, make a return to
13	the tax administrator containing the correct computation of net patient-services revenue for the
14	hospital fiscal year ending September 30, 2015 and the licensing fee due upon that amount. All
15	returns shall be signed by the hospital's authorized representative, subject to the pains and
16	penalties of perjury.
17	(b) There is also imposed a hospital licensing fee at the rate of five and six hundred fifty-
18	two thousandths percent (5.652%) upon the net patient-services revenue of every hospital for the
19	hospital's first fiscal year ending on or after January 1, 2016, except that the license fee for all
20	hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven percent
21	(37%). The discount for Washington County hospitals is subject to approval by the Secretary of
22	the U.S. Department of Health and Human Services of a state plan amendment submitted by the
23	executive office of health and human services for the purpose of pursuing a waiver of the
24	uniformity requirement for the hospital license fee. This licensing fee shall be administered and
25	collected by the tax administrator, division of taxation within the department of revenue, and all
26	the administration, collection and other provisions of chapter 51 of title 44 shall apply. Every
27	hospital shall pay the licensing fee to the tax administrator on or before July 10, 2018, and
28	payments shall be made by electronic transfer of monies to the general treasurer and deposited to
29	the general fund. Every hospital shall, on or before June 14, 2018, make a return to the tax
30	administrator containing the correct computation of net patient-services revenue for the hospital
31	fiscal year ending September 30, 2016 and the licensing fee due upon that amount. All returns
32	shall be signed by the hospital's authorized representative, subject to the pains and penalties of
33	perjury.
34	(c) For purposes of this section the following words and phrases have the following
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1	meanings:
2	(1) "Hospital" means the actual facilities and buildings in existence in Rhode Island,
3	licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on
4	that license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23
5	(hospital conversions) and §23-17-6(b) (change in effective control), that provides short-term
6	acute inpatient and/or outpatient care to persons who require definitive diagnosis and treatment
7	for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the
8	negotiated Medicaid managed care payment rates for a court-approved purchaser that acquires a
9	hospital through receivership, special mastership or other similar state insolvency proceedings
10	(which court-approved purchaser is issued a hospital license after January 1, 2013) shall be based
11	upon the newly negotiated rates between the court-approved purchaser and the health plan, and
12	such rates shall be effective as of the date that the court-approved purchaser and the health plan
13	execute the initial agreement containing the newly negotiated rate. The rate-setting methodology
14	for inpatient hospital payments and outpatient hospital payments set for the §§ 40-8-
15	13.4(b)(1)(B)(iii) and 40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases
16	for each annual twelve-month (12) period as of July 1 following the completion of the first full
17	year of the court-approved purchaser's initial Medicaid managed care contract.
18	(2) "Gross patient services revenue" means the gross revenue related to patient care
19	services.
20	(3) "Net patient services revenue" means the charges related to patient care services less
21	(i) charges attributable to charity care; (ii) bad debt expenses; and (iii) contractual allowances.
22	(d) The tax administrator shall make and promulgate any rules, regulations, and
23	procedures not inconsistent with state law and fiscal procedures that he or she deems necessary
24	for the proper administration of this section and to carry out the provisions, policy, and purposes
25	of this section.
26	(e) The licensing fee imposed by this section shall apply to hospitals as defined herein
27	that are duly licensed on July 1, 2016 2017, and shall be in addition to the inspection fee imposed
28	by § 23-17-38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.
29	SECTION 2. This article shall take effect as of July 1, 2017.
30	ARTICLE 15
31	RELATING TO BEHAVIORAL HEALTHCARE, DEVELOPMENTAL DISABILITIES AND
32	HOSPITALS – MAINTENANCE OF EFFORT
33	SECTION 1. Section 40.1-1-13 of the General Laws in Chapter 40.1-1 entitled
34	“Department of Behavioral Healthcare, Developmental Disabilities and Hospitals” is hereby
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1	amended to read as follows:
2	40.1-1-13. Powers and duties of the office.
3	(a) Notwithstanding any provision of the Rhode Island general laws to the contrary, the
4	department of behavioral healthcare, developmental disabilities and hospitals shall have the
5	following powers and duties:
6	(1) To establish and promulgate the overall plans, policies, objectives, and priorities for
7	state substance-abuse education, prevention, and treatment; provided, however, that the director
8	shall obtain and consider input from all interested state departments and agencies prior to the
9	promulgation of any such plans or policies;
10	(2) Evaluate and monitor all state grants and contracts to local substance-abuse service
11	providers;
12	(3) Develop, provide for, and coordinate the implementation of a comprehensive state
13	plan for substance-abuse education, prevention, and treatment;
14	(4) Ensure the collection, analysis, and dissemination of information for planning and
15	evaluation of substance-abuse services;
16	(5) Provide support, guidance, and technical assistance to individuals, local governments,
17	community service providers, public and private organizations in their substance-abuse education,
18	prevention, and treatment activities;
19	(6) Confer with all interested department directors to coordinate the administration of
20	state programs and policies that directly affect substance-abuse treatment and prevention;
21	(7) Seek and receive funds from the federal government and private sources in order to
22	further the purposes of this chapter;
23	(8) To act for all purposes in the capacity of "state substance-abuse authority" as the sole
24	designated agency with the sole responsibility for planning, coordinating, managing,
25	implementing, and reporting on state substance-abuse planning and policy efforts as it relates to
26	requirements set forth in pertinent federal substance-abuse laws and regulations; To act in
27	conjunction with the executive office of health and human services as the state’s co-designated
28	agency (§ 42 U.S.C. 300x-30(a)) for administering federal aid and for the purposes of the
29	calculation of the expenditures relative to the substance abuse block grant and federal funding
30	maintenance of effort. The department of behavioral healthcare, developmental disabilities and
31	hospitals, as the state’s substance abuse authority, will have the sole responsibility for the
32	planning, policy and implementation efforts as it relates to the requirements set forth in pertinent
33	substance abuse laws and regulations including 42 U.S.C. § 300x-21 et seq.;
34	(9) Propose, review, and/or approve, as appropriate, proposals, policies, or plans
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1	involving insurance and managed care systems for substance-abuse services in Rhode Island;
2	(10) To enter into, in compliance with the provisions of chapter 2 of title 37, contractual
3	relationships and memoranda of agreement as necessary for the purposes of this chapter;
4	(11) To license facilities and programs for the care and treatment of substance abusers
5	and for the prevention of substance abuse;
6	(12) To promulgate rules and regulations necessary to carry out the requirements of this
7	chapter;
8	(13) Perform other acts and exercise any other powers necessary or convenient to carry
9	out the intent and purposes of this chapter;
10	(14) To exercise the authority and responsibilities relating to education, prevention, and
11	treatment of substance abuse, as contained in, but not limited to, the following chapters: chapter
12	1.10 of title 23; chapter 10.1 of title 23; chapter 28.2 of title 23; chapter 21.2 of title 16; chapter
13	21.3 of title 16; chapter 50.1 of title 42; chapter 109 of title 42; chapter 69 of title 5 and § 35-4-
14	18;
15	(15) To establish a Medicare Part D restricted-receipt account in the hospitals and
16	community rehabilitation services program to receive and expend Medicare Part D
17	reimbursements from pharmacy benefit providers consistent with the purposes of this chapter;
18	(16) To establish a RICLAS group home operations restricted-receipt account in the
19	services for the developmentally disabled program to receive and expend rental income from
20	RICLAS group clients for group home-related expenditures, including food, utilities, community
21	activities, and the maintenance of group homes;
22	(17) To establish a non-Medicaid, third-party payor restricted-receipt account in the
23	hospitals and community rehabilitation services program to receive and expend reimbursement
24	from non-Medicaid, third-party payors to fund hospital patient services that are not Medicaid
25	eligible; and
26	(18) To certify recovery housing facilities directly, or through a contracted entity, as
27	defined by department guidelines, which includes adherence to using National Alliance for
28	Recovery Residences (NARR) standards. In accordance with a schedule to be determined by the
29	department, all referrals from state agencies or state-funded facilities shall be to certified houses,
30	and only certified recovery housing facilities shall be eligible to receive state funding to deliver
31	recovery housing services; and.
32	(19) To act in conjunction with the executive office of health and human services as the
33	state's co-designated agency for administering federal aid and for the purpose of the calculation of
34	expenditures relative to the substance-abuse block grant and federal funding maintenance of
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1	effort requirements.
2	SECTION 2. Section 42-7.2-2 of the General Laws in Chapter 42-7.2 entitled “Executive
3	Office of Health and Human Services” is hereby amended to read as follows:
4	42-7.2-2. Executive office of health and human services.
5	There is hereby established within the executive branch of state government an executive
6	office of health and human services to serve as the principal agency of the executive branch of
7	state government for managing the departments of children, youth and families, health, human
8	services, and behavioral healthcare, developmental disabilities and hospitals. In this capacity, the
9	office shall:
10	(a) Lead the state's four (4) health and human services departments in order to:
11	(1) Improve the economy, efficiency, coordination, and quality of health and human
12	services policy and planning, budgeting, and financing.
13	(2) Design strategies and implement best practices that foster service access, consumer
14	safety, and positive outcomes.
15	(3) Maximize and leverage funds from all available public and private sources, including
16	federal financial participation, grants, and awards.
17	(4) Increase public confidence by conducting independent reviews of health and human
18	services issues in order to promote accountability and coordination across departments.
19	(5) Ensure that state health and human services policies and programs are responsive to
20	changing consumer needs and to the network of community providers that deliver assistive
21	services and supports on their behalf.
22	(6) Administer Rhode Island Medicaid in the capacity of the single state agency
23	authorized under title XIX of the U.S. Social Security act, 42 U.S.C. § 1396a et seq., and exercise
24	such single state agency authority for such other federal and state programs as may be designated
25	by the governor. Except as provided for herein, nothing in this chapter shall be construed as
26	transferring to the secretary the powers, duties, or functions conferred upon the departments by
27	Rhode Island general laws for the management and operations of programs or services approved
28	for federal financial participation under the authority of the Medicaid state agency.
29	(7) To act in conjunction with the department of behavioral healthcare, developmental
30	disabilities and hospitals as the state's co-designated agency for administering federal aid and for
31	the purpose of the calculation of expenditures relative to the substance-abuse block grant and
32	federal funding maintenance of effort requirements. To act in conjunction with the department of
33	behavioral healthcare, developmental disabilities and hospitals as the state’s co-designated
34	agency (42 U.S.C. § 300x-30(a)) for administering federal aid and for the purposes of the
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1	calculation of expenditures relative to the substance abuse block grant and federal funding
2	maintenance of effort.
3	SECTION 3. This article shall take effect upon passage.
4	ARTICLE 16
5	RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS
6	SECTION 1. This article consists of joint resolutions that is submitted pursuant to Rhode
7	Island General Law § 35-18-1, et seq.
8	SECTION 2. Information Technology Improvements.
9	WHEREAS, the 2012 General Assembly approved borrowing of twenty-five million
10	dollars ($25.0 million) for the Division of Taxation to modernize its technology through the
11	acquisition of a modern integrated tax system; and
12	WHEREAS, the Division of Taxation desires to implement phase 2 enhancements to the
13	new Integrated Tax System, to include improved cash transaction management by replacing
14	manual cash, check and credit card payments and allowing for reconciliation and to provide
15	management with dashboard and real time statistical reporting tools, as well as meet audit
16	requirements; and
17	WHEREAS, the Department of Administration desires to replace the computer system
18	that currently supports the payroll function for the entirety of state government that has been in
19	place for 30 years and does not allow for interfacing with other systems, including the scheduling,
20	time, leave and attendance system currently being developed and due for completion in 2017; and
21	WHEREAS, the Department of Health desires replace a twenty-five (25) year old records
22	platform with a new statewide vital statistics system, which would provide electronic recording
23	for death registrations, marriage and civil unions, and termination of pregnancies, and ensure
24	compliance with federal agencies and protect the health, welfare, and safety of the public; and
25	WHEREAS, the State is in need of hospital information systems, electronic medical
26	records platform, and patient case management tracking systems for the Departments of
27	Behavioral Healthcare, Developmental Disabilities and Hospitals, Corrections, and Human
28	Services to support the administrative, financial, and clinical function of the agencies; and
29	WHEREAS, the project costs associated with these information technology
30	improvements are estimated to be sixteen million one hundred thousand dollars ($16.1 million).
31	The total financing obligation of the State of Rhode Island would be approximately sixteen
32	million two hundred thousand dollars ($16.2 million), with sixteen million one hundred thousand
33	dollars ($16.1) million deposited in the project fund and one hundred thousand dollars ($100,000)
34	allocated to pay the associated costs of financing. Total payments on the State’s obligation over
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1	ten (10) years on the sixteen million two hundred thousand dollars ($16.2 million) issuance are
2	projected to be twenty one million dollars ($21.0 million) assuming an average interest rate of
3	five percent (5.0%). The payments would be financed within the Department of Administration
4	from general revenue appropriations; now, therefore, be it
5	RESOLVED, that this General Assembly hereby approves financing in an amount not
6	to exceed sixteen million two hundred thousand dollars ($16.2 million) for the provision of funds
7	for information technology improvements, including one hundred thousand dollars ($100,000) to
8	pay costs of financing; that two million dollars ($2.0 million) be made available from the project
9	fund for the second phase of the integrated tax system within the Division of Taxation; that two
10	million five hundred thousand dollars ($2.5 million) be made available for a health vital records
11	system; that eight million one hundred thousand dollars ($8.1 million) be made available for a
12	new hospital information tracking and electronic medical records and patient case management
13	system; and that three million five hundred thousand dollars ($3.5 million) be provided for a new
14	statewide payroll system; provided that a surcharge on vital records will be established by the
15	Department of Health through rules and regulations to support the cost of financing the health
16	vital records system portion of this financing; be it further
17	RESOLVED, that this joint resolution shall take effect immediately upon its passage by
18	the General Assembly.
19	SECTION 3. Energy Improvements in State Facilities.
20	WHEREAS, Executive Order 15-17 sets robust energy reduction targets and clean energy
21	goals for state agencies; and
22	WHEREAS, the Office of Energy Resources (OER) is requesting funding to support
23	implementation of comprehensive, cost-effective energy efficiency measures and renewable
24	energy installations at state-owned facilities; and
25	WHEREAS, funding will support clean energy projects that advance the following goals:
26	Support the Governor’s "Lead by Example" initiative, as well as broader state economic,
27	energy and environmental policy goals that include clean energy industry and job growth;
28	significantly reduce state facility operating and on-going maintenance costs, and reduce energy
29	costs across state government; shrink state government’s carbon footprint by reducing overall
30	energy demand and adopting renewable energy resources; provide a strategic opportunity to
31	leverage other funding sources to expand the pool of capital available to implement cost-effective
32	clean energy projects; and leverage other funding sources and improve state facility
33	infrastructure, while improving building comfort; and
34	WHEREAS, funding will allow the state to leverage other funding sources, including
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1	funds allocated by the Office of Energy Resources from the state’s participation in the Regional
2	Greenhouse Gas Initiative (RGGI) and financial incentives made possible by utility-administered
3	energy efficiency programs supported by the Systems Benefit Charge (SBC), to increase the pool
4	of capital available to support clean energy projects; and
5	WHEREAS, the Office of Energy Resources will collaborate with the various divisions
6	of the Department of Administration, other State Agencies and National Grid to integrate clean
7	energy investments within existing capital asset maintenance projects and to develop a steady
8	pipeline of energy-specific projects that achieve the aforementioned goals; and
9	WHEREAS, projects would include, but not be limited to energy efficient and renewable
10	energy projects related to improvements to lighting and HVAC systems within Group Homes, the
11	Powers Building, the Cannon Building, the State House, Capitol Hill Parking, the DOT State
12	Office Building, the Department of Corrections’ Pastore complex properties, the Chapin Health
13	Lab, other Department of Administration buildings and other miscellaneous state buildings; and
14	WHEREAS, the project costs associated with these improvements are estimated to be
15	eleven million nine hundred thousand dollars ($11.9 million). The total financing obligation of
16	the State of Rhode Island would be approximately twelve million dollars ($12.0 million), with
17	eleven million nine hundred thousand dollars ($11.9 million) deposited in the project fund and
18	one hundred thousand dollars ($100,000) allocated to pay the associated costs of financing. Total
19	payments on the State’s obligation over ten (10) years on the twelve million dollars ($12.0
20	million) issuance are projected to total fifteen million two hundred thousand dollars ($15.2
21	million) assuming an average interest rate of five percent (5.0%). The payments would be
22	financed through energy efficiency savings, and will allow the state to leverage other funding
23	sources, including funds allocated by Office of Energy Resources from the state’s participation in
24	the Regional Greenhouse Gas Initiative (RGGI) and financial incentives made possible by utility-
25	administered energy efficiency programs supported by the Systems Benefit Charge (SBC), to
26	increase the pool of capital available to support clean energy projects; now, therefore, be it
27	RESOLVED, that this General Assembly hereby approves financing in an amount not to
28	exceed twelve million dollars ($12.0 million) for the provision of funds for energy efficiency
29	projects and that projects undertaken by the Office of Energy Resources will be structured so that,
30	at a minimum, the annual principal and interest resulting from the debt issuance would be
31	completely offset by the energy savings resulting from the projects as verified by the Office of
32	Management and Budget; and be it further
33	RESOLVED, that this joint resolution shall take effect immediately upon its passage by
34	the General Assembly.
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1	SECTION 4. Confined Aquatic Dredged Material Disposal Cells.
2	WHEREAS, over the past year the Army Corps of Engineers has approached the Coastal
3	Resources Management Council to act as the local sponsor to the federal action of maintaining
4	the depths of the Providence River and Harbor Shipping Channel; and
5	WHEREAS, the Providence River and Shipping Channel was last maintained in 2003;
6	and
7	WHEREAS, the project will include dredging and removal of sediments not suitable for
8	ocean disposal, and thus will require the construction of a new Confined Aquatic Disposal (CAD)
9	Cell to dispose and sequester those sediments; and
10	WHEREAS, CAD cells are constructed in aquatic environments to reduce the
11	environmental risk from sediments not suitable for ocean disposal by storing these sediments in a
12	depression in the bottom of the aquatic system; and
13	WHEREAS, CAD cells offer a major economic value, as a significant cost of disposing
14	dredged materials is in the transportation of the dredged material to a disposal location; and
15	WHEREAS, having CAD cells located within hundreds of feet from a dredging operation
16	saves local port operators millions of dollars over the 10-year life of those cells; and
17	WHERAS, the Coastal Resources Management Council seeks to build additional
18	capacity in the CAD Cells beyond that required only for this specific project, in order to account
19	for the many port, maritime, and marina facilities that also have the need to dredge material at
20	their facilities, which may not be suitable for ocean disposal, thereby saving these entities
21	significant cost, in both sediment testing and transportation of the material to other locations, due
22	to the fact that the existing CAD cells in the river have reached their useful ten-year design life;
23	and
24	WHEREAS, with the approval by the voters of the 2016 Rhode Island Port Infrastructure
25	Bond referendum, the need to maintain the viability of port and maritime operations, the state’s
26	marine trades industry, and the increase economic value of ProvPort, increased disposal
27	capacities from new CAD cells are needed; and
28	WHEREAS, the Army Corps of Engineers expects to begin maintenance of the
29	Providence River and Harbor Shipping Channel in the fall of 2018, the total cost share of the
30	local sponsor are required by the end of FY 2018; and
31	WHEREAS, the project is considered a federal maintenance project, the State is required
32	to pay for the creation of the CAD cell only at an up-front cost share of thirty five percent (35%);
33	and
34	WHEREAS, the project costs associated with this project is estimated to be eleven
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1	million dollars ($11.0 million), with five hundred thousand dollars ($500,000) derived from the
2	Coastal Resources Management Council Dredge Fund. The total financing obligation of the State
3	of Rhode Island would be approximately ten million five hundred thousand dollars ($10.5
4	million), with ten million four hundred thousand dollars ($10.4 million) deposited in the project
5	fund and one hundred thousand dollars ($100,000) allocated to pay the associated costs of
6	financing. Total payments on the State’s obligation over ten (10) years on the ten million five
7	hundred thousand dollars ($10.5 million) issuance are projected to be thirteen million six hundred
8	thousand dollars ($13.6 million) assuming an average interest rate of five percent (5.0%). A
9	portion of the annual principal and interest payments would be financed from an increase in fees
10	charged to marine operators to deposit their dredged materials into CAD cells and with general
11	revenue appropriations to supplement the cost; now, therefore, be it
12	RESOLVED, that this General Assembly hereby approves financing in an amount not to
13	exceed ten million five hundred thousand dollars ($10.5 million) for the provision of funds for the
14	Confined Aquatic Disposal Cells project, including one hundred thousand dollars ($100,000) to
15	pay costs of financing.
16	SECTION 5. Energy Performance Contract – University of Rhode Island – Phase 3
17	WHEREAS, the Council on Postsecondary Education and the University of Rhode
18	Island, herby referred to as “the University,” are proposing projects that involve the
19	implementation of professionally guided capital investments in energy efficiency improvements
20	to University buildings and infrastructure that will pay for themselves through cost avoidance,
21	while reducing long-term energy consumption associated with operations; and
22	WHEREAS, the University presently manages over three hundred twenty four (324)
23	buildings, with associated utility infrastructure, containing over four million eight hundred fifty
24	thousand (4,850,000) square feet of space, a majority of which was constructed over thirty years
25	ago. Energy efficiency has become a vital feature of the institution’s fiscal responsibility; and
26	WHEREAS, energy performance contracting has been significantly enhanced and
27	refined, and many examples exist of programs successfully employed around the country that are
28	prudent from both a fiscal management and an environmental stewardship perspective; and
29	WHEREAS, various private sector companies, hereinafter referred to as energy service
30	companies or “ESCOs”, are willing to guarantee the performance of the improvements yielding
31	energy savings to pay for the cost of the replacement of antiquated and inefficient equipment,
32	including boilers, heating and air conditioning, lighting and other building systems and
33	equipment; and
34	WHEREAS, the higher education system has successfully participated with the state
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1	department of administration in a request for proposal process to enter into an energy
2	performance contract with ESCO to provide investment grade energy audit evaluations, design,
3	installation, and maintenance services, as well as assistance in securing rebate resources and the
4	guarantee of the energy or water saving performance of the installed retrofit measures; and
5	WHEREAS, the evaluations of an energy service company further affirms the significant
6	opportunity to implement energy conservation improvements on a building-by-building basis that
7	pay for themselves through operating budget savings within a fifteen year period; and
8	WHEREAS, tax exempt financing via “certificates of participation,” with associated debt
9	service supported for the financing term by energy cost avoidance (i.e., by redirecting dollars that
10	would have paid for utility consumption, but with the improvements can be redeployed to repay
11	the financing) is the most cost effective means of supporting the investment in energy efficiency
12	improvements under this program; and
13	WHEREAS, the University is seeking to undertake energy performance contracts to
14	replace obsolete equipment with new equipment and infrastructure components employing high
15	energy efficient technologies, to employ insulation and weatherization measures, and to deploy
16	measures that sustain the highest performance levels for these improvements; and
17	WHEREAS, the estimated cost of such contracts are for the University, an amount not to
18	exceed eleven million six hundred thousand dollars ($11.6 million), with the request to the state
19	to have with ten million five hundred thousand dollars ($10.5 million) deposited into the
20	construction fund, six hundred ninety-six thousand dollars ($696,000) deposited in a capitalized
21	interest fund, and four hundred thirty thousand dollars ($430,000) to pay associated costs of
22	financing. Total payments on the state’s obligation over fifteen (15) years on the eleven million
23	six hundred thousand dollars ($11.6 million) issuance are projected to be sixteen million eight
24	hundred thousand dollars ($16.8 million), assuming an average effective interest rate of five
25	percent (5.0%), the payments would be derived by the University from energy savings; now,
26	therefore, be it
27	RESOLVED, that the University is authorized to proceed with the aforementioned
28	projects in the amounts specified above; and be it further
29	RESOLVED, that these contracts will be structured so that, at a minimum, the annual
30	principal, interest and service and maintenance costs resulting from these contracts would be fully
31	offset by the cumulative annual energy savings derived from energy efficiency improvements, the
32	performance of which being guaranteed by the ESCOs; and be it further
33	RESOLVED, that these contracts would be multi-year contracts of up to a term of fifteen
34	(15) years. In addition to saving energy and helping to protect the University from future energy
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1	cost increases, these contracts would aid in reducing maintenance costs by providing new,
2	efficient equipment and technology that outperforms older higher energy consuming systems; and
3	be it further
4	RESOLVED, that this joint resolution shall take effect immediately upon its passage.
5	SECTION 6. White Horn Brook Apartments – University of Rhode Island.
6	WHEREAS, the Rhode Island Council on Postsecondary Education is proposing a project
7	which involves the construction of a new residence hall on the west bank of the White Horn
8	Brook located in the northwest corner of the Kingston campus of the University of Rhode Island
9	in the Town of South Kingstown, Rhode Island; and
10	WHEREAS, the growth of undergraduate student enrollment is critical to the fiscal health
11	of the University; and
12	WHEREAS, there is high undergraduate student demand for apartment style on campus
13	housing; and
14	WHEREAS, the University is committed to providing adequate and appropriate housing
15	opportunities for its students; and
16	WHEREAS, the University continues to undertake significant improvements to existing
17	dormitory style housing facilities and has built new units that offer both suite style and apartment
18	living options with the goal of providing over fifty percent (50%) of its undergraduate students on
19	campus housing in keeping with its peer institutions; and
20	WHEREAS, apartment style housing units are critical for the on campus retention of
21	third and fourth year students that often seek alternative housing off campus; and
22	WHEREAS, a recent market study has demonstrated that the market demand for
23	additional, apartment style campus housing indicates that this project will be fully occupied upon
24	completion and into the future; and
25	WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the
26	General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island
27	and other public agencies of certain obligations including financing guarantees or other
28	agreements; and
29	WHEREAS, the design and construction of the project will be financed through Rhode
30	Island Health and Educational Building (RIHEBC) revenue bonds, with an expected term of
31	thirty (30) years; and
32	WHEREAS, the total project costs associated with the completion of the project and
33	proposed financing method would be supported approximately ninety-five percent (95%) by
34	auxiliary fee revenues for URI Housing and Residential Life for the apartment building and
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1	approximately five percent (5%) by University general funds for site enabling facility relocation,
2	utility and hardscape and landscape infrastructure and site work; and
3	WHEREAS, the project is currently in design and targeting a total project financing cost
4	of eighty eight million seven hundred and eighty seven thousand dollars ($88,787,000) in
5	RIHEBC bonds, with a request to have seventy eight million four hundred forty thousand dollars
6	($78,440,000) deposited into a construction fund, eight million thirty seven thousand dollars
7	($8,037,000) deposited in a capitalized interest fund, and two million three hundred ten thousand
8	dollars ($2,310,000) to pay associated cost of financing, and with an assumed interest rate of five
9	percent (5%) debt service repayments will not exceed one hundred seventy three million two
10	hundred seventy one thousand and six hundred fifty three dollars ($173,271,653); and
11	WHEREAS, the University has been advised by its architectural and project management
12	firms to anticipate potential additional escalation of construction costs leading up to the final
13	pricing of the construction of this project; now, therefore, be it
14	RESOLVED, that the General Assembly hereby approves financing in an amount not to
15	exceed total debt service payments of one hundred seventy three million two hundred seventy one
16	thousand and six hundred fifty three dollars ($173,271,653) for construction of a new apartment
17	style residence facility on the University of Rhode Island Kingston Campus, with the not-to-
18	exceed amount to be financed determined by the actual financing interest rate at the time of the
19	bond issuance; and be it further
20	RESOLVED, that this joint resolution shall take effect immediately upon its passage.
21	SECTION 6. This resolution shall apply to financing obligations issued within four (4)
22	years of the date of passage of this resolution.
23	SECTION 7. This article shall take effect upon passage.
24	ARTICLE 17
25	RELATING TO LEASE AGREEMENT FOR LEASED OFFICE AND OPERATING SPACE
26	SECTION 1. This article consists of a Joint Resolution that is submitted pursuant to
27	Rhode Island General Laws §37-6-2, et seq., authorizing a lease agreement to rent parking space
28	for the Rhode Island Nursing Education Center project.
29	SECTION 2. Parking Space for Rhode Island Nursing Education Center Project.
30	WHEREAS, on June 16, 2014, the Rhode Island Board of Education approved a lease
31	agreement between the Rhode Island Board of Education and Commonwealth Ventures South
32	Street Landing Master Tenant, LLC; and
33	WHEREAS, during the 2014 General Assembly session, the General Assembly approved
34	the proposed lease agreement for a term not to exceed seventeen (17) years; and
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1	WHEREAS, on October 14, 2015 the Rhode Island Board of Education approved
2	Amendments to the Lease including a State Unit Parking Sublease Agreement between CV SSL
3	Garage LLC & South Street Landing LLC that provides for the construction of an eight level,
4	approximately 744 parking space garage; and
5	WHEREAS, the State Unit Parking Sublease Agreement grants the State Premises the
6	right to the parking of two hundred (200) automobiles in the Parking Garage; and
7	WHEREAS, additional parking spaces are needed to accommodate the projected number
8	of University and College students enrolled in classes offered at the Rhode Island Nursing
9	Education Center (“the RINEC”); and
10	WHEREAS, a draft transportation and parking analysis was conducted to identify
11	potential parking facilities that would accommodate a minimum of four hundred (400)
12	automobiles in the vicinity of within one mile of the RINEC; and
13	WHEREAS, the off-site parking facilities will be comprised of no greater than two (2)
14	locations, with a minimum number of one hundred and fifty (150) spaces in one of the two
15	locations; and
16	WHEREAS, the parking surface will be paved and all spaces shall be striped, if not
17	already available in an existing garage or parking lot. The perimeter of the lot will be fenced or
18	otherwise cordoned off from adjacent properties and the street. Entrances and exits will provide a
19	means to control access and egress during the school operating hours. On-site security will be
20	provided including a security guard during operating hours; and
21	WHEREAS, shuttle service will be required to transport students to and from the RINEC
22	to and from the parking facility(s) and space will be provided in the off-site parking facilities for
23	loading and unloading; and
24	WHEREAS, the Department of Administration is soliciting proposals from qualified
25	firms to provide aforementioned off-site parking facilities; and
26	WHEREAS, the solicitation of proposals requires an initial contract period of five years
27	with two (2) consecutive two-year options available; and
28	WHEREAS, the estimated annual parking costs as presented in the draft analysis is five
29	hundred thousand dollars ($500,000) per year, exclusive of estimated shuttle service; and
30	WHEREAS, Rhode Island General Law 37-6-2(d) requires that the General Assembly
31	approve any lease agreement that carries a term of five (5) years or longer, where the state is
32	tenant and the aggregate rent of the terms exceeds five hundred thousand dollars ($500,000);
33	now, therefore, be it
34	RESOLVED, that this General Assembly hereby approves the financing of the off-site
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1	parking facilities currently estimated at five hundred thousand dollars ($500,000) annually, but
2	will be later informed by the final lease for off-site parking facilities for the RINEC, which will
3	be approved by the Council on Postsecondary Education and the State Properties Committee; and
4	be it further
5	RESOLVED, that this Joint Resolution shall take effect immediately upon its passage by
6	the General Assembly; and be it further
7	RESOLVED, that the Secretary of State is hereby authorized and directed to transmit
8	duly certified copies of this resolution to the Governor, the Chair of the Board of Education, the
9	Director of Administration, the State Budget Officer, and the Chair of the State Properties
10	Committee.
11	SECTION 3. This article shall take effect upon passage.
12	ARTICLE 18
13	RELATING TO EDUCATION AID
14	SECTION 1. Section 16-7.2-6 of the General Laws in Chapter 16-7.2 entitled “The
15	Education Equity and Property Tax Relief Act” is hereby amended to read as follows:
16	16-7.2-6. Categorical programs, state funded expenses.
17	In addition to the foundation education aid provided pursuant to § 16-7.2-3, the
18	permanent foundation education-aid program shall provide direct state funding for:
19	(a) Excess costs associated with special education students. Excess costs are defined
20	when an individual special education student's cost shall be deemed to be "extraordinary".
21	Extraordinary costs are those educational costs that exceed the state-approved threshold based on
22	an amount above five times the core foundation amount (total of core-instruction amount plus
23	student success amount). The department of elementary and secondary education shall prorate the
24	funds available for distribution among those eligible school districts if the total approved costs for
25	which school districts are seeking reimbursement exceed the amount of funding appropriated in
26	any fiscal year; and the department of elementary and secondary education shall also collect data
27	on those educational costs that exceed the state-approved threshold based on an amount above
28	four (4) times the core-foundation amount.
29	(b) Career and technical education costs to help meet initial investment requirements
30	needed to transform existing, or create new, comprehensive, career and technical education
31	programs and career pathways in critical and emerging industries and to help offset the higher-
32	than-average costs associated with facilities, equipment maintenance and repair, and supplies
33	necessary for maintaining the quality of highly specialized programs that are a priority for the
34	state. The department shall develop criteria for the purpose of allocating any and all career and
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1	technical education funds as may be determined by the general assembly on an annual basis. The
2	department of elementary and secondary education shall prorate the funds available for
3	distribution among those eligible school districts if the total approved costs for which school
4	districts are seeking reimbursement exceed the amount of funding available in any fiscal year;
5	(c) Programs to increase access to voluntary, free, high-quality pre-kindergarten
6	programs. The department shall recommend criteria for the purpose of allocating any and all early
7	childhood program funds as may be determined by the general assembly;
8	(d) Central Falls, Davies, and the Met Center Stabilization Fund is established to assure
9	that appropriate funding is available to support their students. Additional support for Central Falls
10	is needed due to concerns regarding the city's capacity to meet the local share of education costs.
11	This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs
12	outside the permanent foundation education-aid formula, including, but not limited to,
13	transportation, facility maintenance, and retiree health benefits shall be shared between the state
14	and the city of Central Falls. The fund shall be annually reviewed to determine the amount of the
15	state and city appropriation. The state's share of this fund may be supported through a reallocation
16	of current state appropriations to the Central Falls school district. At the end of the transition
17	period defined in § 16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24.
18	Additional support for the Davies and the Met Center is needed due to the costs associated with
19	running a stand-alone high school offering both academic and career and technical coursework.
20	The department shall recommend criteria for the purpose of allocating any and all stabilization
21	funds as may be determined by the general assembly; and
22	(e) Excess costs associated with transporting students to out-of-district non-public
23	schools and within regional school districts. (1) This fund will provide state funding for the costs
24	associated with transporting students to out-of-district non-public schools, pursuant to chapter
25	21.1 of title 16. The state will assume the costs of non-public out-of-district transportation for
26	those districts participating in the statewide system; and (2) This fund will provide direct state
27	funding for the excess costs associated with transporting students within regional school districts,
28	established pursuant to chapter 3 of title 16. This fund requires that the state and regional school
29	district share equally the student transportation costs net any federal sources of revenue for these
30	expenditures. The department of elementary and secondary education shall prorate the funds
31	available for distribution among those eligible school districts if the total approved costs for
32	which school districts are seeking reimbursement exceed the amount of funding available in any
33	fiscal year.
34	(f) Public school districts that are regionalized shall be eligible for a regionalization
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1	bonus as set forth below.
2	(1) As used herein, the term "regionalized" shall be deemed to refer to a regional school
3	district established under the provisions of chapter 3 of title 16 including the Chariho Regional
4	School district.
5	(2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus
6	shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the
7	regionalization bonus shall commence in the first fiscal year following the establishment of a
8	regionalized school district as set forth in chapter 3 of title 16, including the Chariho Regional
9	School District.
10	(3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the
11	state's share of the foundation education aid for the regionalized district as calculated pursuant to
12	§§ 16-7.2-3 and 16-7.2-4 in that fiscal year.
13	(4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the
14	state's share of the foundation education aid for the regionalized district as calculated pursuant to
15	§§ 16-7.2-3 and 16-7.2-4 in that fiscal year.
16	(5) The regionalization bonus shall cease in the third fiscal year.
17	(6) The regionalization bonus for the Chariho regional school district shall be applied to
18	the state share of the permanent foundation education aid for the member towns.
19	(7) The department of elementary and secondary education shall prorate the funds
20	available for distribution among those eligible regionalized school districts if the total, approved
21	costs for which regionalized school districts are seeking a regionalization bonus exceed the
22	amount of funding appropriated in any fiscal year.
23	(g) Additional state support for English learners (EL). For FY 2017 only, the The amount
24	to support EL students shall be determined by multiplying an EL factor of ten percent (10%) by
25	the core-instruction per-pupil amount defined in § 16-7.2-3(a)(1) and applying that amount of
26	additional state support to EL students identified using widely adopted, independent standards
27	and assessments identified by the Commissioner. All categorical funds distributed pursuant to this
28	subsection must be used to provide high-quality, research-based services to EL students and
29	managed in accordance with requirements set forth by the commissioner of elementary and
30	secondary education. The department of elementary and secondary education shall collect
31	performance reports from districts and approve the use of funds prior to expenditure. The
32	department of elementary and secondary education shall ensure the funds are aligned to activities
33	that are innovative and expansive and not utilized for activities the district is currently funding.
34	The department of elementary and secondary education shall prorate the funds available for
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1	distribution among eligible recipients if the total calculated costs exceed the amount of funding
2	available in any fiscal year.
3	(h) Categorical programs defined in (a) through (f) shall be funded pursuant to the
4	transition plan in § 16-7.2-7.
5	SECTION 2. This article shall take effect as of July 1, 2017.
6	ARTICLE 19
7	RELATING TO ELECTRIC VEHICLE REBATE PROGRAM
8	SECTION 1. Title 42 of the General Laws entitled "State Affairs and Government" is
9	hereby amended by adding thereto the following chapter:
10	CHAPTER 42-140.5
11	DRIVING RHODE ISLAND TO VEHICLE ELECTRICFICATION PROGRAM
12	42-140.5-1. Purpose.
13	The purpose of this chapter is to promote and increase the deployment of light-duty
14	electric vehicles; reduce long-term consumer fuel costs; and reduce greenhouse gas emissions in
15	the transportation sector.
16	42-140.5-2. Definitions.
17	When used in this chapter, the following terms shall have the following meanings:
18	(1) "Applicant" means an individual who files an application to receive a rebate in
19	connection with the purchase of an electric vehicle;
20	(2) "Application form" means a form to be submitted to and reviewed by the office of
21	energy resources for the purposes of determining whether an applicant is eligible to receive an
22	electric vehicle rebate;
23	(3) “Commissioner” means the commissioner of the office of energy resources.
24	(4) "Consumer information" means program literature, notifications, and other program
25	information that is provided by the office of energy resources to consumers, auto dealerships, and
26	other program stakeholders;
27	(5) "Office" means the office of energy resources established pursuant to § 42-140-2;
28	(6) “Program” means the electric vehicle rebate program established pursuant to § 42-
29	140.5-3.
30	(7) “State” means the State of Rhode Island and Providence Plantations
31	42-140.5-3. Establishment of program.
32	There is hereby established an electric vehicle rebate program to be administered by the
33	office for the purpose of providing rebates to eligible applicants in connection with the purchase
34	or lease of an electric vehicle as defined in regulation. The program shall begin in fiscal year
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1	2018 and expire at the conclusion of fiscal year 2022. For fiscal year 2018, two hundred and fifty
2	thousand dollars ($250,000) shall be appropriated to the office for the purpose of paying out
3	rebates for the program. For each fiscal year thereafter, additional sums shall be appropriated to
4	the office for the purpose of paying out rebates until expiration of the program.
5	42-140.5-4. Rules and regulations.
6	The office shall establish, by rule and regulations adopted in accordance with chapter 35
7	of title 42, standards which shall determine the amount of electric vehicle rebates per vehicle
8	make and model, eligibility criteria for applicants, whether circumstances exist that require an
9	applicant to forfeit and/or return a rebate payment, and other necessary program criteria as
10	determined by the office. The rules and regulations established by the office shall make
11	incentives available to drivers licensed in the state and/or individuals who, in accordance with
12	regulation, can sufficiently demonstrate residency in the state. The office may amend the rules in
13	accordance with chapter 35 of title 42.
14	42-140.5-5. Rebate Program Limitations.
15	Rebates granted through the program shall only be available in connection with the
16	purchase or lease of an electric vehicle sold within the state, unless otherwise determined by the
17	office pursuant to § 42-140.5-4. Payment of rebates granted to applicants through the program are
18	subject to the availability of funds and the total amount of rebate payments shall not exceed the
19	sum that has been appropriated through the state budget to the office for the purpose of paying
20	out rebates. At any time funds become unavailable, the office shall notify all pending applicants
21	and suspend the program until funds become available.
22	42-140.5-6. Forms of application.
23	The office shall develop and make available to the public program guidance and
24	application forms to enable consumer participation in the program. At a minimum, the
25	application form shall contain the following:
26	(i) Proof of purchase or lease, which may include an executed vehicle sales or lease
27	agreement, or other appropriate documentation as determined by the office;
28	(ii) The cost of the electric vehicle;
29	(iii) The make and model of the electric vehicle;
30	(iv) Identification of the auto dealership that sold or leased the electric vehicle;
31	(v) Relevant applicant information, including name and contact information, a copy of a
32	valid drivers license, and proof of residency as defined in regulation; and
33	(vi) Any other documentation required by program rules and regulations established by
34	the office pursuant to § 42-140.5-4.
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1	42-140.5-7. Review of applications.
2	(1) The office shall review each incentive application form for compliance with the
3	provisions of this chapter and the provisions of any rules and regulations established pursuant to §
4	42-140.5-4. All eligibility determinations made by the office shall be provided to the applicant by
5	writing or electronic mail upon issuance, and shall set forth the reasons for any denial or
6	reduction of a requested rebate. If an applicant is aggrieved by a determination made by the
7	office, the applicant may appeal the decision to the commissioner. The appeal must be in writing
8	and be received by the commissioner within thirty (30) days of the determination date. The
9	commissioner may uphold, reverse or modify the office’s determination. The commissioner’s
10	decision shall be in writing and be made within thirty (30) days of receipt of the appeal, unless
11	otherwise extended by the commissioner for good cause. If the applicant is aggrieved by a
12	determination made by the commissioner, the applicant may seek judicial review pursuant to §
13	42-35-15.
14	42-140.5-8. Annual Report.
15	By October 1st of each year, the office shall publish an annual report on its website
16	summarizing the program’s activities for the previous fiscal year. At a minimum, the report shall
17	include the total amount of payments made through the program.
18	SECTION 2. This article shall take effect upon passage.
19	ARTICLE 20
20	RELATING TO MINIMUM WAGES
21	SECTION 1. Section 28-12-3 of the General Laws in Chapter 28-12 entitled “Minimum
22	Wages” is hereby amended to read as follows:
23	28-12-3. Minimum wages.
24	(a) Every employer shall pay to each of his or her employees: commencing July 1, 1999,
25	at least the minimum wage of five dollars and sixty-five cents ($5.65) per hour. Commencing
26	September 1, 2000, the minimum wage is six dollars and fifteen cents ($6.15) per hour.
27	(b) Commencing January 1, 2004, the minimum wage is six dollars and seventy-five
28	cents ($6.75) per hour.
29	(c) Commencing March 1, 2006, the minimum wage is seven dollars and ten cents
30	($7.10) per hour.
31	(d) Commencing January 1, 2007, the minimum wage is seven dollars and forty cents
32	($7.40) per hour.
33	(e) Commencing January 1, 2013, the minimum wage is seven dollars and seventy-five
34	cents ($7.75) per hour.
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1	(f) Commencing January 1, 2014, the minimum wage is eight dollars ($8.00) per hour.
2	(g) Commencing January 1, 2015, the minimum wage is nine dollars ($9.00) per hour.
3	(h) Commencing January 1, 2016, the minimum wage is nine dollars and sixty cents
4	($9.60) per hour.
5	(i) Commencing October 1, 2017, the minimum wage is ten dollars and fifty cents
6	($10.50) per hour.
7	SECTION 2. This article shall take effect upon passage.
8	ARTICLE 21
9	RELATING TO DEPARTMENT OF LABOR AND TRAINING FEES AND FINES
10	SECTION 1. Section 5-6-24 of the General Laws in Chapter 5-6 entitled “Electricians” is
11	hereby amended to read as follows:
12	5-6-24. Apprentices – Registration Fee.
13	(a) This chapter does not forbid the employment of one properly limited registered
14	apprentice electrician working with and under the direct personal supervision of a licensed
15	journeyperson electrician. Additionally, this chapter does not forbid the employment of: (1) one
16	properly registered apprentice oil burnerperson working with and under the direct personal
17	supervision of a licensed oil burnerperson; (2) one properly registered apprentice fire alarm
18	installer working with and under the direct personal supervision of a licensed fire alarm installer;
19	or (3) two (2) properly registered apprentice electrical sign installer working with and under the
20	direct personal supervision of a licensed electrical sign installer; (4) one properly registered
21	apprentice maintenance electrician working with and under the direct personal supervision of a
22	valid Class C or Class D license holder; or (5) one properly registered apprentice lightning
23	protection installer working with and under the direct personal supervision of a licensed lightning
24	protection installer (LPI). Apprentices are required to register with the division of professional
25	regulation initially upon payment of a fee of twenty dollars ($20.00) per year. Apprentices are
26	required to register with the division of professional regulation immediately upon employment
27	with a properly licensed electrical contractor or lightning protection contractor.
28	(b) Indentured apprentice electricians are required to work a minimum of eight thousand
29	(8,000) hours over a period of time of not less than four (4) years and successfully complete one
30	hundred forty-four (144) hours of related instruction per year in an indentured apprenticeship
31	program approved by the Rhode Island department of labor and training, to qualify for the
32	journeyperson "B" electrician examination; provided, however, apprentices may receive credit for
33	one hundred forty-four (144) hours of classroom training gained in a vocational school authorized
34	by the board of regents for elementary and secondary education and approved by the Rhode
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1	Island department of labor and training apprenticeship council. Provided, that the test applicant
2	has possessed for at least four (4) years prior to the filing of the application a certificate of
3	registration in full force and effect from the department of labor and training of Rhode Island
4	specifying the person as an indentured apprentice, and the application of an applicant is
5	accompanied by an affidavit or affidavits of his or her employer or former employers or other
6	reasonably satisfactory evidence showing that the applicant has been actually engaged in
7	electrical work as an apprentice in Rhode Island during those four (4) years, or the application is
8	accompanied by an affidavit or other reasonably satisfactory evidence showing that the applicant
9	has successfully completed a course of study in a recognized college or university and has
10	pursued a course of electrical technology for at least two (2) academic years or is the recipient of
11	an associate degree in electrical technology, and has thereafter been indentured by the department
12	of labor and training as an apprentice for at least two (2) years and employed as an indentured
13	apprentice by a duly licensed electrician master in this state for a period of two (2) years, or a
14	showing that the applicant possesses a certificate of license issued under the laws of another state.
15	Limited registered apprentice electricians shall be required to work a minimum of four thousand
16	(4,000) hours over a period of time of not less than two (2) years.
17	(c) Indentured apprentice maintenance electricians are required to work a minimum of six
18	thousand (6,000) hours over a period of time of not less than three (3) years and successfully
19	complete a one hundred forty-four (144) hours of related instruction per year in an indentured
20	apprenticeship program approved by the Rhode Island department of labor and training, to qualify
21	for the journeyperson "M" electrician examination. Provided, however, that the test applicant has
22	possessed for at least three (3) years prior to the filing of the application a certificate of
23	registration in full force and effect from the department of labor and training of Rhode Island
24	specifying the person as an indentured apprentice, and the application of an applicant is
25	accompanied by an affidavit or affidavits of his or her employer or former employers or other
26	reasonably satisfactory evidence showing that the applicant has been actually engaged in
27	electrical work as an apprentice in Rhode Island during those three (3) years. Class M
28	journeyperson electricians may qualify to take the journeyperson "B" electrician examination
29	upon registering as a fourth year apprentice and becoming employed by a properly licensed Class
30	A electrical contractor for that period of time.
31	(d) Apprentice lightning protection installers are required to work a minimum of four
32	thousand (4,000) hours over a period of time of not less than two (2) years to qualify for the
33	lightning protection installer (LPI) examination. Provided, that the test applicant has possessed
34	for at least two (2) years prior to the filing of the application a certificate of registration in full
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1	force and effect from the department of labor and training of Rhode Island specifying the person
2	as an apprentice lightning protection installer, and the application of an applicant is accompanied
3	by an affidavit or affidavits of his or her employer or former employers or other reasonably
4	satisfactory evidence showing that the applicant has been actually engaged in lightning protection
5	work as an apprentice during those two (2) years.
6	SECTION 2. Section 5-20-25 of the General Laws in Chapter 5-20 entitled “Plumbers,
7	Irrigators and Water System Installers” is hereby amended to read as follows:
8	5-20-25. Registration of Apprentices.
9	(a) Any person who has agreed to work a minimum of eight thousand (8,000) hours over
10	a period of time of not less than five (5) years under the direct supervision and instruction of a
11	master plumber or journeyperson plumber as an apprentice to learn the plumbing business, and
12	that agreement is approved by the division of professional regulation, shall be registered for an
13	initial period of one year, with renewal on the applicant's birthday, by the director of the
14	department of labor and training and have issued to him or her upon the payment of a fee of
15	twenty dollars ($20.00) a certificate showing that person to be a registered apprentice. Every
16	person who continues to work as an apprentice after the initial one year registration is required to
17	register again as an apprentice and pay the fee.
18	(b) Any person who has agreed to work a minimum of two thousand (2,000) hours over a
19	period of time of not less than one year under the direct supervision and instruction of a master
20	irrigator or a journeyperson irrigator as an apprentice to learn the irrigation business, and that
21	agreement is approved by the division of professional regulation, shall be registered for an initial
22	period of one year, with renewal on the applicant's birthday, by the director of the department of
23	labor and training and have issued to him or her upon the payment of a fee of twenty dollars
24	($20.00) a certificate showing that person to be a registered apprentice. Every person who
25	continues to work as an apprentice after the initial one year registration is required to register
26	again as an apprentice and pay the fee.
27	(c) Any person who has agreed to work a minimum of two thousand (2,000) hours over a
28	period of time of not less than one year, under the direct supervision and instruction of a master
29	water-filtration/treatment-system installer or a journeyperson water-filtration/treatment-system
30	installer, as an apprentice to learn the water-filtration/treatment business, and that agreement is
31	approved by the division of professional regulation, shall be registered for an initial period of one
32	year, with renewal on the applicant's birthday, by the director of the department of labor and
33	training and have issued to them, upon the payment of a fee of twenty dollars ($20.00), a
34	certificate showing that person to be a registered apprentice. Every person who continues to work
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1	as an apprentice after the initial one-year registration is required to register again as an apprentice
2	and pay the fee.
3	SECTION 3. Section 28-27-18 of the General Laws in Chapter 28-27 entitled
4	“Mechanical Trades” is hereby amended to read as follows:
5	28-27-18. Registration of Apprentices.
6	(a) Any person who has agreed to work under the supervision of a licensed pipefitter,
7	refrigeration/air conditioning, sprinkler fitter or sheet metal master under a state sanctioned
8	apprenticeship program shall be registered by the director of labor and training upon the payment
9	of a twenty-four dollar ($24.00) annual fee and be issued a certificate of apprenticeship. A
10	renewal certificate shall also be issued for twenty-four dollars ($24.00) for each succeeding
11	twelve (12) month period.
12	(b) The minimum formal training period for a P.J.F. limited class II license shall be one
13	hundred sixty (160) hours of classroom and/or laboratory technical training, approved by the
14	department of labor and training. The fee schedules for the P.J.F. limited license are detailed in §
15	28-27-5.2. All other sections of this chapter shall remain in full force and effect.
16	SECTION 4. Sections 28-45-9.1 and 28-45-13.1 of the General Laws in Chapter 28-45
17	entitled “Apprenticeship Programs in Trade and Industry” are hereby repealed.
18	28-45-9.1. Apprenticeship programs – Fees.
19	– A fee of one hundred twenty dollars ($120) shall be paid by each program sponsor,
20	except those sponsors who are in registered school-to-career apprenticeship programs only,
21	and/or those sponsors who are licensed masters/contractors with the department of labor and
22	training, division of professional regulation, requesting authorization as an approved sponsor
23	from the state apprenticeship council. All state approved sponsors' certificates issued by the
24	division of professional regulation, except those sponsors who are registered in school-to-career
25	apprenticeship programs only, and/or those sponsors who are licensed masters/contractors with
26	the department of labor and training, division of professional regulation, shall become due for
27	annual renewal upon payment of a renewal fee of one hundred twenty dollars ($120). Those fees
28	shall be deposited as general revenues.
29	28-45-13.1. Apprenticeship registration – Fees. –
30	A fee of twenty-four dollars ($24.00) shall be paid by each indentured apprentice, except
31	those apprentices who are registered in school-to-career apprenticeship programs only, not
32	registered as an apprentice with the division of professional regulation of the department of labor
33	and training, except those apprentices who are registered in school-to-career apprenticeship
34	programs only, requesting approval and registration with the department of labor and training. All
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1	state approved apprentice certificates that are not registered and renewable through the division of
2	professional regulation of the department of labor and training shall become due for renewal
3	annually for a renewal fee of twenty-four dollars ($24.00). All apprenticeship certificates issued
4	by the division of professional regulation of the department of labor and training shall expire on
5	the indentured date of the individual qualifying for the certificate.
6	SECTION 5. Section 5-6-32 of the General Laws entitled “Electricians” is hereby
7	amended to read as follows:
8	5-6-32. Authority of director to assess penalty.
9	(a) The director may assess an administrative penalty on any person, firm, or corporation
10	for any violation of the provisions of this chapter, after notice and a hearing, before and upon the
11	recommendation of the board of examiners of electricians in the amount of five hundred dollars
12	($500) one thousand five hundred dollars ($1,500) for the first violation and nine hundred fifty
13	dollars ($950) two thousand dollars ($2,000) for a subsequent violation. All funds collected by
14	the labor and training department under this section shall be placed in the restricted receipts
15	account created pursuant to § 28-22-1.1. This section is in addition to any other action provided
16	by law for violations of this chapter.
17	(b) The chief of the section shall act as an investigator with respect to the enforcement of
18	all the provisions of law relative to the licensing of electricians and, to this effect, whenever a
19	complaint is made by the chief of the section to the director of the department of labor and
20	training or his or her designee that the provisions of this chapter are being violated, the director of
21	the department of labor and training or his or her designee may issue an order to cease and desist
22	from that violation and may impose the above penalties against the violator and against the
23	contractor.
24	SECTION 6. Chapter 28-14 of the General Laws entitled “Payment of Wages” is hereby
25	amended by adding thereto the following section:
26	28-14-17.1. Administrative Assessment.
27	(a) Any employer found to have violated the provisions of this chapter upon final
28	determination by the department of labor and training, including claims settled
29	via settlement agreement and administrative hearing shall be assessed an administrative
30	penalty equal to fifteen percent (15%) to twenty five percent (25%) of the amount of back wages
31	ordered to be paid for a first violation within a three (3) year period. For subsequent violations
32	within a three (3) year period the assessment shall equal twenty five percent (25%) to fifty
33	percent (50%) of the amount of back wages ordered to be paid.
34	(b) In determining the amount of any penalty imposed under this section, the director or
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1	his or her designee shall consider the good faith of the employer, the gravity of the violation, the
2	history of previous violations and whether or not the violation was an innocent mistake or willful
3	violation.
4	SECTION 7. Section 28-14-19.1 of the General Laws entitled “Payment of Wages” is
5	hereby amended to ready as follows:
6	28-14-19.1. Misclassification of employees.
7	(a) The misclassification of a worker whether performing work as a natural person,
8	business, corporation or entity of any kind, as an independent contractor when the worker should
9	be considered and paid as an employee shall be considered a violation of this chapter.
10	(b) In addition to any other relief in which any department or an aggrieved party may be
11	entitled for such a violation, the employer shall be liable for a civil penalty in an amount not less
12	than five hundred dollars ($500) one thousand five hundred dollars ($1,500) and not greater than
13	three thousand ($3,000) dollars for each misclassified employee for a first offense and up to five
14	thousand dollars ($5,000) for each misclassified employee for any subsequent offense, which
15	shall be shared equally between the department and the aggrieved party.
16	(c) In determining the amount of any penalty imposed under this section, the director or
17	his or her designee shall consider the size of the employer’s business, the good faith of the
18	employer, the gravity of the violation, the history of previous violations, and whether or not the
19	violation was an innocent mistake or willful.
20	(d) A violation of this section may be adjudicated under § 28-14-19 and consolidated
21	with any labor standards violation or under §§ 37-13-14.1 and 15 and consolidated with any
22	prevailing wage violation.
23	(e) A violation of this section may be brought or adjudicated by any division of the
24	department of labor and training.
25	(f) The department shall notify the contractor’s registration board and the tax
26	administrator of any violation of this section.
27	SECTION 8. Sections 28-42-38.1, 28-42-64, 28-42-65 and 28-42-66 of the General
28	Laws in Chapter 28-42 entitled “Employment Security – General Provisions” are hereby amended
29	to read as follows:
30	28-42-38.1. Quarterly wage reports.
31	(a)(1) The department of labor and training is designated and constituted the agency
32	within this state charged with the responsibility of collecting quarterly wage information, as
33	required by 42 U.S.C. § 1302b-7. Each employer shall be required to submit a detailed wage
34	report to the director, for all calendar quarters within thirty (30) days after the end of each quarter
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1	in a form and manner prescribed by the director, listing each employee's name, social security
2	account number, the total amount of wages paid to each employee, and any other information that
3	the director deems necessary. All reports shall be in addition to those now required by the
4	department.
5	(2) The department will utilize the quarterly wage information that it collects from
6	employers to establish an individual's eligibility for unemployment insurance benefits and to
7	determine the amount and duration of benefits for all new claims filed.
8	(3) Notwithstanding any provisions of chapters 42 – 44 of this title to the contrary, the
9	department may utilize employee quarterly wage information submitted by employers to measure
10	the progress of the state in meeting the performance measures developed in response to United
11	States Public Law 105-220, the Workforce Investment Act of 1998 (see 29 U.S.C. § 2801 et seq.),
12	further provided however, that the department may verify certain employee quarterly wage
13	information for the local workforce investment board and provide it with the verified data under
14	procedures established by rules and regulations promulgated by the director. The director shall
15	also make the quarterly wage information available, upon request, to the agencies of other states
16	in the performance of their public duties under the Workforce Investment Act of 1998 in that
17	state. This information shall be made available only to the extent required by the Secretary of
18	Labor and necessary for the valid administrative needs of the authorized agencies, and all
19	agencies requesting this data shall protect it from unauthorized disclosure. The department shall
20	be reimbursed by the agencies requesting the information for the costs incurred in providing the
21	information.
22	(4) Notwithstanding any provisions of chapters 42 – 44 of this title to the contrary, the
23	department may provide quarterly wage information to the United States Census Bureau for the
24	purpose of participating in a joint local employment dynamics program with the United States
25	Census Bureau and the Bureau of Labor Statistics.
26	(5) Notwithstanding any provisions of chapter 42-44 of this title to the contrary, the
27	department may provide employee quarterly wage information to the department's designated
28	research partners for the purpose of its workforce data quality and workforce innovation fund
29	initiatives. The provision of these records will be done in accordance with an approved data-
30	sharing agreement between the department and its designated research partners that protects the
31	security and confidentiality of these records and through procedures established by protocols,
32	rules and/or regulations as determined necessary by the director and appropriately established or
33	promulgated.
34	(b) Notwithstanding any inconsistent provisions of chapters 42 – 44 of this title, an
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1	employer who fails to file a detailed wage report in the manner and at the times required by
2	subsection (a) of this section for any calendar quarter shall pay a penalty of twenty-five dollars
3	($25.00) for each failure or refusal to file. An additional penalty of twenty-five dollars ($25.00)
4	shall be assessed for each month the report is delinquent; provided, that this penalty shall not
5	exceed one hundred and fifty dollars ($150) two hundred dollars ($200.00) for any one report.
6	This penalty shall be paid into the employment security tardy account fund and if any employer
7	fails to pay the penalty, when assessed, it shall be collected by civil action as provided in § 28-43-
8	18.
9	28-42-64. Failure to make contributions or reports.
10	Any individual, or employing unit or its agent, who knowingly fails or refuses to make
11	any contribution or other payment required of an employing unit under chapters 42 – 44 of this
12	title, or who knowingly fails or refuses to make any contribution or report at the time and in the
13	manner required by the regulations adopted as prescribed in these chapters, shall upon conviction
14	be punished by a fine of not less than ten dollars ($10.00) twenty-five dollars ($25.00) nor more
15	than one hundred dollars ($100) two hundred dollars ($200.00), or by imprisonment not longer
16	than sixty (60) days, or by both the fine and imprisonment, and each day of that failure or refusal
17	shall constitute a separate and distinct offense. If the employer in question is a corporation, every
18	officer of the corporation who knowingly participates in any violation specified in this section
19	shall be subject to these penalties.
20	28-42-65. Pecuniary penalty for failure to file reports or pay contributions.
21	An employer who fails to file any reports required under chapters 42 – 44 of this title, or
22	who fails or refuses to pay any contributions required under those chapters in the manner and at
23	the times as required by the law and regulations or as the director may, in accordance with these
24	chapters, prescribe, shall pay a penalty of ten dollars ($10.00) twenty-five dollars ($25.00) for
25	each failure or refusal to file, and where any contribution is due, shall pay an additional penalty of
26	ten percent (10%) of the amount due. The foregoing penalties shall be paid into the employment
27	security tardy account fund, and shall be in addition to contributions and interest required to be
28	paid as provided in chapters 42 – 44 of this title. If any employer fails to pay a penalty, when
29	assessed, it shall be collected by civil action as provided in § 28-43-18.
30	28-42-66. Penalty for violations generally.
31	Any violation of any provision of chapters 42 – 44 of this title or of any order, rule, or
32	regulation of the board of review after consultation with the director, for which a penalty is
33	neither prescribed above nor provided by any other applicable statute, shall be punished by a fine
34	of not less than twenty dollars ($20.00) twenty-five dollars ($25.00) nor more than fifty dollars
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1	($50.00) two hundred dollars ($200.00), or by imprisonment not longer than thirty (30) days, or
2	by both the fine and imprisonment.
3	SECTION 9. This article shall take effect as of July 1, 2017.
4	ARTICLE 22
5	RELATING TO LEAD POISONING PREVENTION PROGRAMS
6	SECTION 1. Chapter 42-128.1 of the General Laws entitled "Lead Hazard Mitigation" is
7	hereby repealed in its entirety.
8	42-128.1-1. Short title.
9	This chapter may be cited and shall be known as the "Lead Hazard Mitigation Act."
10	42-128.1-2. Legislative findings.
11	The general assembly finds and declares that:
12	(1) Rhode Island's rental housing stock is older and lead hazards are widespread;
13	(2) There has been an insufficient level of lead hazard abatement in Rhode Island's rental
14	housing stock;
15	(3) Children in Rhode Island, especially in older urban communities, have been victims
16	of lead poisoning at disproportionately high rates;
17	(4) During the 1990's meeting department of health lead hazard abatement standards has
18	ranged between seven thousand dollars ($7,000) and fifteen thousand dollars ($15,000) per unit;
19	(5) The combination of the high cost of meeting the abatement standards and the system
20	of incentives available for rental property owners in Rhode Island resulted in few properties being
21	improved to state standards as a consequence of voluntary activity by property owners; and
22	(6) The US Department of Housing and Urban Development has promulgated regulations
23	for lead hazard control that apply to housing that is federally assisted and require inspections with
24	dust testing.
25	42-128.1-3. Legislative purposes.
26	In order to promote the prevention of childhood lead poisoning in Rhode Island, it is the
27	purpose of this chapter:
28	(1) To increase the supply of rental housing in Rhode Island in which lead hazards are, at
29	a minimum, mitigated;
30	(2) To improve public awareness of lead issues and to educate both property owners and
31	tenants about practices that can reduce the incidence of lead poisoning;
32	(3) To resolve disjointed insurance practices arising from lead liabilities exclusions.
33	42-128.1-4. Definitions.
34	The following definitions shall apply in the interpretation and enforcement of this
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1	chapter:
2	(1) "At-risk occupant" means a person under six (6) years of age, or a pregnant woman,
3	who has been a legal inhabitant in a dwelling unit for at least thirty (30) days; provided, however,
4	that a guest of any age shall not be considered an occupant for the purposes of this chapter.
5	(2) "Designated person" means either: (i) A property owner, or the agent of the property
6	owner, who has completed a housing resources commission-approved awareness seminar on lead
7	hazards and their control; or (ii) A person trained and certified as either a lead-hazard-mitigation
8	inspector, an environmental-lead inspector, or a lead-hazard-inspection technician.
9	(3) "Dwelling" or "dwelling unit" means an enclosed space used for living and sleeping
10	by human occupants as a place of residence, including, but not limited to: a house, an apartment,
11	or condominium, but, for the purpose of this chapter, shall not include hotels or "temporary
12	housing".
13	(4) "Elderly housing" means a federal, state, or local program that is specifically designed
14	and operated to assist elderly persons, sixty-two (62) years of age, or older, as set forth in a
15	regulatory agreement or zoning ordinance.
16	(5) "Environmental lead-poisoning level" means a confirmed, venous blood lead level as
17	defined pursuant to § 23-24.6-4.
18	(6) "Lead abated" means a dwelling and premises that are lead free or lead safe, as those
19	terms are defined in chapter 24.6 of title 23.
20	(7) "Lead Free" means that a dwelling, dwelling unit, or premises contains no lead, or
21	contains lead in amounts less than the maximum-acceptable environmental lead levels established
22	by regulation by the Rhode Island department of health.
23	(8) "Lead-hazard-mitigation standards" means standards adopted by the housing
24	resources commission for a dwelling unit and associated common areas that provide for:
25	(i) A continuing and ongoing responsibility for lead-hazard control that includes: (A)
26	Repair of deteriorated paint; (B) Correction of dust-generating conditions, such as friction or
27	impact areas; (C) Provision of cleanable surfaces to eliminate harmful dust loading; (D)
28	Correction of soil lead hazards; (E) Safe work practices;
29	(ii) At unit turnover: (A) The provision of information on lead hazards and their
30	avoidance and control to tenants; (B) Documentation of lead-hazard-mitigation compliance; (C)
31	An explicit process for notification by tenants to property owners of instances of deterioration in
32	conditions effecting lead hazards; and
33	(iii) Maintenance of "lead-hazard control." "Lead-hazard control" means those portions of
34	the lead-hazard-mitigation standard pertaining to repair of deteriorating paint; correction of dust-
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1	generating conditions; provision of cleanable surfaces; and correction of soil lead hazards that can
2	be identified by visual inspection as provided for in subdivision (9)(ii) or through inspections
3	conducted in accordance with chapter 24.2 of title 45, "Minimum Housing Standards", and
4	chapter 24.3 of title 45, "Housing Maintenance and Occupancy Code".
5	(9) "Lead-hazard-mitigation compliance" means an independent, clearance inspection and
6	certificate, as specified in this subdivision, undertaken to determine whether the lead-hazard-
7	mitigation measures have been completed. Said inspection shall be valid for two (2) years, or
8	until the next turnover of the dwelling unit, whichever period is longer. The requirements for a
9	clearance-review inspection shall be met either by an independent clearance inspection or a visual
10	inspection as set forth in this subdivision:
11	(i) An "independent clearance inspection" means an inspection performed by a person
12	who is not the property owner or an employee of the property owner and who is authorized by the
13	housing resources commission to conduct independent clearance inspections, which shall include:
14	(A) A visual inspection to determine that the lead-hazard controls have been met, and (B) Dust
15	testing in accordance with rules established by the department of health and consistent with
16	federal standards. A certificate of conformance shall be issued by the person who conducted the
17	inspection on the passage of the visual inspection and the required dust testing. An independent
18	clearance inspection shall be required at unit turnover or once in a twenty-four-month (24) period,
19	whichever period is the longer. If the tenancy of an occupant is two (2) years or greater, the
20	certificate of conformance shall be maintained by a visual inspection as set forth in paragraph (ii)
21	of this subdivision.
22	(ii) A "visual inspection" means a visual inspection by a property owner or designated
23	person to determine that the lead-hazard controls have been met. If the designated person
24	concluded that the lead-hazard controls specified in this chapter have been met, the designated
25	person may complete an Affidavit of Completion of Visual Inspection. The affidavit shall be
26	valid upon its being notarized within thirty (30) days after the completion of the visual inspection
27	and shall set forth:
28	(A) The date and location that the designated person took the lead-hazard-control
29	awareness seminar;
30	(B) The date and findings of the lead-hazard evaluation;
31	(C) The date and description of the lead-hazard-control measures undertaken;
32	(D) The date of the visual inspection; and
33	(E) The name and signature of the designated person and date of the Affidavit of
34	Completion of Visual Inspection.
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1	An Affidavit of Completion of Visual Inspection shall be valid for two (2) years after the
2	date it was notarized, or until unit turnover, whichever time period is the longer, and shall be kept
3	by the property owner for a minimum of five (5) years.
4	(iii) Presumptive compliance. A property owner of ten (10) or more dwelling units shall
5	be eligible to obtain a certificate of presumptive compliance from the housing resources
6	commission provided that the following conditions are met:
7	(A) The dwelling units were constructed after 1960 or after 1950 on federally owned or
8	leased lands;
9	(B) There are no major, outstanding minimum-housing violations on the premises;
10	(C) The property owner has no history of repeated lead poisonings; and
11	(D) Independent clearance inspections have been conducted on at least five percent (5%)
12	of the dwelling units, not less than two (2) dwelling units and at least ninety percent (90%) of the
13	independent clearance inspections were passed. "Repeated lead poisoning", for purposes of this
14	paragraph, shall mean a lead-poisoning rate of less than one half percent (.5%) per dwelling-unit
15	year, with dwelling-unit years being calculated by multiplying the number of dwelling units
16	owned by the property owner by the number of years of ownership since 1992. Major minimum
17	housing violations shall be defined by rule by the housing resources commission. The housing
18	resources commission shall not arbitrarily withhold its approval of applications for presumptive
19	compliance. A certificate of presumptive compliance shall be deemed to be satisfactory for
20	purposes of demonstrating compliance with the requirements of this chapter. If a unit qualifies for
21	a presumptive compliance certificate, by itself having passed an independent clearance inspection
22	at least once, that unit's compliance may be maintained by a visual inspection as set forth in this
23	chapter.
24	(10) "Lead-hazard-mitigation inspector" means either a person approved by the housing
25	resources commission to perform independent clearance inspections under this chapter or
26	inspections required by 24 C.F.R., Part 35, Subpart M [24 C.F.R. 35.1200 et seq.], or approved by
27	the department of health to conduct inspections pursuant to chapter 24.6 of title 23.
28	Lead-hazard-mitigation inspectors performing independent clearance inspections shall
29	not have any interest, financial or otherwise, direct or indirect, or engage in any business or
30	employment with regards to:
31	(a) The dwelling unit that is the subject of an independent clearance inspection; or
32	(b) The contractor performing lead-hazard-control work in the dwelling unit; or
33	(c) The laboratory that is used to analyze environmental lead samples for the independent
34	clearance inspection unless the lead-hazard-mitigation inspector discloses his or her relationship
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1	with the laboratory to the person requesting the inspection and on the inspection report.
2	Employees of public agencies and quasi-public agencies that hold a financial interest in
3	the property may perform independent clearance inspections.
4	(11) "Lead poisoned" means a confirmed venous blood lead level established by the
5	department of health pursuant to § 23-24.6-4(1).
6	(12) "Lead Safe" means that a dwelling, dwelling unit, or premises has undergone
7	sufficient, lead-hazard reduction to ensure that no significant, environment lead hazard is present
8	and includes, but is not limited to, covering and encapsulation and is evidenced by a lead-safe
9	certificate issued by the department of health.
10	(13) "Property owner" means any person who, alone or jointly or severally with others:
11	(i) Shall have legal title to any dwelling, dwelling unit, or structure, with or without
12	accompanying actual possession of it; or
13	(ii) Shall have charge, care, or control of any dwelling, dwelling unit, or structure as
14	owner or agent of the owner, or an executor, administrator, trustee, or guardian of the estate of the
15	owner. Any person representing the actual owner shall be bound to comply with the provisions of
16	this chapter, and of rules and regulations adopted pursuant to this chapter, to the same extent as if
17	that person were the owner.
18	(iii) Notwithstanding the foregoing, no holder of a mortgage or other lien holder who, in
19	enforcing a security interest, acquires title by foreclosure or deed in lieu of foreclosure shall be
20	considered a property owner for purposes of this chapter, if the holder transfers the title within
21	one year after the date the title is acquired; provided, however, if the mortgagee or lien holder,
22	subsequent to acquiring title, is notified of a lead hazard under chapter 24.6 of title 23 or § 42-
23	128.1-8(a)(5), then and in that event, the mortgagee or lien holder shall take any steps to reduce
24	the lead hazard that shall be required under the provisions of chapter 24.6 of title 23 or this
25	chapter, as applicable.
26	(14) "Temporary housing" means any seasonal place of residence that is rented for no
27	more than one hundred (100) days per calendar year to the same tenant, where no lease renewal
28	or extension can occur, and any emergency shelter intended for night-to-night accommodation.
29	(15) "Tenant turnover" means the time at which all existing occupants vacate a unit and
30	all new occupants move into the unit.
31	42-128.1-5. Housing resources commission – Powers and duties with respect to lead
32	hazard mitigation.
33	(a) General powers and duties. The housing resources commission shall implement and
34	put into full force and effect the powers, duties, and responsibilities assigned to it by this chapter,
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1	and shall serve as the lead state agency for lead hazard mitigation, planning, education, technical
2	assistance, and coordination of state projects and state financial assistance to property owners for
3	lead hazard mitigation.
4	(b) Regulatory guidelines. In developing and promulgating rules and regulations as
5	provided for in this chapter, the housing resources commission shall consider, among other
6	things: (1) the effect on efforts to reduce the incidence of lead poisoning, (2) the ease and cost of
7	implementation, (3) the impact on the ability to conduct real estate transactions fairly and
8	expeditiously, (4) consistency with federal standards, such that the differences between basic
9	federal standards and Rhode Island standards for lead hazard mitigation are, to the extent
10	practicable, minimized, and (5) the direction of effort to locations and housing types, which due
11	to age, condition, and prior history of lead poisoning are more likely to the location of lead
12	poisoning. Said regulations shall include a definition of "turnover" of a dwelling unit and a means
13	for tenants to voluntarily notify property owners of the legal tenancy of an "at-risk" occupant.
14	(c) Comprehensive strategic plan. In order to establish clear goals for increasing the
15	availability of housing in which lead hazards have been mitigated, to provide performance
16	measures by which to assess progress toward achieving the purposes of this chapter, and to
17	facilitate coordination among state agencies and political subdivisions with responsibilities for
18	housing and housing quality for lead poisoning reduction and for the availability of insurance
19	coverage described in this chapter, the housing resources commission established by chapter 128
20	of this title shall adopt by April 1, 2003, a four (4) year, comprehensive strategic plan for
21	reducing the incidence of childhood lead poisoning, for increasing the supply of lead-safe
22	housing, and for assuring that pre-1978 in rental housing throughout the state lead hazards have
23	been mitigated.
24	(1) Plan elements. The plan as a minimum shall include elements pertaining to:
25	(i) Educating people with regard to lead hazards and how they can be avoided, mitigated,
26	and/or abated;
27	(ii) Programs to assist low and moderate income owners of property to eliminate lead
28	hazards and to achieve lead-safe conditions;
29	(iii) Coordination of the enforcement of laws pertaining to lead hazard control, mitigation
30	and abatement including the Lead Poisoning Prevention Act, chapter 24.6 of title 23, and
31	minimum housing codes and standards;
32	(iv) Coordination of efforts with local governments and other agencies to improve
33	housing conditions;
34	(v) Financing lead abatement efforts in Rhode Island, including, but not limited to,
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1	assistance to low and moderate income property owners, education and outreach, and
2	enforcement by state and local officials;
3	(vi) An assessment of the availability of insurance for lead hazard liability, which shall be
4	designed and implemented in cooperation with the department of business regulation.
5	(2) Implementation program. The comprehensive strategic plan shall include an
6	implementation program, which shall include performance measurers and a program of specific
7	activities that are proposed to be undertaken to accomplish the purposes of this chapter and to
8	achieve goals and elements set forth by the plan. The implementation program shall be updated
9	annually according to a schedule set forth in the plan.
10	(3) Reporting. The commission shall report annually to the governor and the general
11	assembly, no later than March of each year, on the progress made in achieving the goals and
12	objectives set forth in the plan, which report may be integrated with or issued in conjunction with
13	the report of the commission on environmental lead submitted pursuant to § 23-24.6-6.
14	42-128.1-6. Education.
15	(a) In order to achieve the purposes of this chapter, a statewide, multifaceted, ongoing
16	educational program designed to meet the needs of tenants, property owners, realtors and real
17	estate agents, insurers and insurance agents, local building officials, and health providers and
18	caregivers is hereby established.
19	(b) The governor, in conjunction with the department of health and the housing resources
20	commission, shall sponsor a series of public service announcements on radio, television, and print
21	media about the nature of lead hazards, the importance of lead hazard control and mitigation, and
22	the purposes and responsibilities set forth in this chapter. In developing and coordinating this
23	public information initiative the sponsors shall seek the participation and involvement of private
24	industry organizations, including those involved in real estate, insurance, mortgage banking, and
25	pediatrics.
26	(c) Within sixty (60) days after the regulations set forth in § 42-128.1-7 for lead hazard
27	control and mitigation go into effect, the housing resources commission in conjunction with the
28	department of health shall:
29	(1) Create culturally and linguistically appropriate material outlining the rights and
30	responsibilities of parties affected by this chapter;
31	(2) Establish guidelines and a trainer's manual for a not more than three (3) hours lead
32	hazard control awareness seminar for rental property owners or designated persons, which shall
33	be forwarded to all public and private colleges and universities in Rhode Island, to other
34	professional training facilities, and to professional associations and community organizations
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1	with a training capacity, with the stipulation this seminar be offered for a maximum fee of fifty
2	dollars ($50.00) per participant. The housing resources commission shall approve the proposals to
3	offer the seminar from institutions, provided those proposals are consistent with the guidelines.
4	An electronic version of this awareness seminar shall be created and approved by the housing
5	resources commission for computer Internet access. Said awareness seminar shall also be
6	produced and made available in both VHS and DVD format for rental or purchase at a reasonable
7	cost not to exceed five dollars ($5.00) for the rental version and fifteen dollars ($15.00) for the
8	purchased version. Said seminar shall be available to tenants, property owners and other
9	interested parties.
10	(3) Adopt rules for the dissemination of information about the requirements of this
11	chapter to all prospective owners of pre-1978 dwellings during the real estate transaction,
12	settlement, or closing;
13	(4) Solicit requests, to the extent that these partnerships are not already established, to
14	enter into ongoing, funded partnerships, to provide specific counseling information services to
15	tenants and affected parties on their rights and responsibilities with regard to lead hazards and
16	lead poisoning.
17	(d) The department of business regulation shall, with regard to its responsibilities for the
18	profession of real estate brokers and salespersons, adopt rules, with the concurrence of the
19	housing resources commission and the department of health which shall be effective not later than
20	June 30, 2004: (1) requiring proof of reasonable familiarity with the knowledge of duties and
21	responsibilities under the provisions of the Lead Poisoning Prevention Act, chapter 24.6 of title
22	23, and this chapter, for the licensure or renewal of licenses of real estate brokers and
23	salespersons in accordance with § 5-20.5-6 after July 1, 2004; and (2) providing, pursuant to § 5-
24	20.5-18, an educational program for real estate brokers and salespersons regarding such duties
25	and responsibilities.
26	(e) The housing resources commission, in conjunction with the department of health, is
27	hereby authorized to develop, offer, engage in, contract for and/or provide any other educational
28	or informational programs that they may deem necessary to accomplish the purposes of this
29	chapter, including, but not limited to: programs to assist families to find housing that is lead free,
30	lead safe or lead hazard mitigated or abated; to train lead hazard mitigation inspectors and local
31	building officials and persons engaged in renovating and/or improving housing about controlling
32	or mitigating lead hazards in pre-1978 housing. Said programs shall provide information about
33	lead hazard mitigation requirements at retail hardware and paint stores and home-improvement
34	centers, including, as a minimum, signs of sufficient size with large enough lettering to be easily
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1	seen and read, which contains the following language:
2	WARNING
3	Use of abrasive material (sandpaper, steel wool, drill disks and pads, etc.) in your home
4	to remove paint may increase the risk of childhood lead poisoning. For more information please
5	contact the Rhode Island housing resources commission or department of health.
6	42-128.1-7. Lead hazard mitigation.
7	The housing resources commission shall adopt, no later than April 1, 2003, rules:
8	(1) For housing constructed prior to 1978, which require property owners to certify at the
9	time of transfer that the dwelling and/or premises meet the requirements for lead hazard
10	mitigation or lead hazard abatement, or that the party or parties acquiring the property are notified
11	of the potential lead hazards, and at the time of rental of units that the requirements for meeting
12	the appropriate standards have been met;
13	(2) For a lead hazard mitigation standard;
14	(3) For any training, certification or licensing necessary to carry out the provisions of this
15	chapter; and
16	(4) For a process to receive, investigate, and decide whether the correction of a lead
17	hazard, pursuant to § 42-128.1-8(a)(3) and (d) was satisfactory. These rules shall establish an
18	expeditious procedure to determine whether the allegation of unsatisfactory correction has merit.
19	The process may be integrated with or make use of the technical assistance service provided for
20	in § 42-128.1-13.
21	(5) For a process to grant a variance to subsections 42-128.1-8(a)(3), (a)(5), and (b),
22	where there exists a hardship as to financing lead hazard mitigation, or where materials,
23	personnel, or weather delays the mitigation completion.
24	42-128.1-8. Duties of property owners of pre-1978 rental dwellings.
25	(a) Property owners of pre-1978 rental dwellings, which have not been made lead safe or
26	have not been lead hazard abated shall comply with all the following requirements:
27	(1) Learn about lead hazards by taking a lead hazard awareness seminar, himself or
28	herself or through a designated person;
29	(2) Evaluate the dwelling unit and premises for lead hazards consistent with the
30	requirements for a lead hazard control evaluation;
31	(3) Correct identified lead hazards by meeting and maintaining the lead hazard mitigation
32	standard;
33	(4) Provide tenants: (i) basic information about lead hazard control; (ii) a copy of the
34	independent clearance inspection; and (iii) information about how to give notice of deteriorating
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1	conditions;
2	(5) Correct lead hazards within thirty (30) days after notification from the tenant of a
3	dwelling unit with an at risk occupant, or as provided for by § 34-18-22.
4	(b) New property owners of a pre-1978 rental dwelling that is occupied by an at risk
5	occupant shall have up to sixty (60) days to meet requirements for lead hazard mitigation, if those
6	requirements were not met by the previous owner at the time of transfer, provided that the new
7	property owner has the property visually inspected within thirty (30) business days after assuming
8	ownership to determine conformity with the lead hazard control standard.
9	(c) The requirements for lead hazard mitigation shall apply to the first change in
10	ownership or tenancy after November 1, 2005; provided further, that unless requested and agreed
11	to by an at-risk occupant, meeting the lead hazard mitigation standard shall not be construed to
12	authorize a property owner to compel or cause a person, who is in tenancy on January 1, 2004,
13	and remains in tenancy continuously thereafter, to vacate a rental unit temporarily or otherwise.
14	(d) If the tenant receives no response to the notification to the property owner of
15	deteriorating conditions affecting lead hazards, if the response is in the tenant's opinion
16	unsatisfactory, or if the remedy performed is in the tenant's opinion unsatisfactory, the tenant may
17	request a review of the matter by the housing resources commission. After its review of the
18	matter, the housing resources commission shall either send notice to the property owner in which
19	notice shall be issued in a manner substantially similar to a notice of violation issued by the
20	director pursuant to the Housing Maintenance Code, chapter 24.3 of title 45, or promptly inform
21	the tenant of the reasons why the notice is not being issued.
22	(e) Notwithstanding the foregoing, the provisions of this chapter shall not apply to
23	common areas in condominium complexes that are owned and operated by condominium
24	associations, or to pre-1978 rental dwelling units that are:
25	(1) Lead-safe or lead free; or
26	(2) Temporary housing; or
27	(3) Elderly housing; or
28	(4) Comprised of two (2) or three (3) units, one of which is occupied by the property
29	owner; or
30	The department of health shall report to the legislature annually on the number of
31	children who are lead poisoned in any of the exempted dwelling units as referred to in subdivision
32	(e)(4) of this section.
33	Nothing contained herein shall be construed to prevent an owner who is seeking to obtain
34	lead liability insurance coverage in the policy from complying with the provisions of this chapter,
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1	by securing and maintaining a valid and in force letter of compliance or conformance in force.
2	42-128.1-9. Insurance coverage.
3	(a) The department of business regulation shall, by January 1, 2003, establish a uniform
4	policy with regard to exclusion for lead poisoning and shall adopt any rules and requirements that
5	may be necessary to assure the availability of insurance coverage for losses and damages caused
6	by lead poisoning, in accordance with the provisions of this chapter, which policy and rules shall
7	apply to liability coverage available to property owners. The department of business regulation
8	shall have the authority and is empowered, consistent with the requirements of chapter 35 of this
9	title, to promulgate rules and regulations, which shall enable it to compile and analyze data and to
10	make determinations with regard to the availability of and rates for lead liability coverage.
11	(b) Except as otherwise provided by this chapter, no insurance company licensed or
12	permitted by the department of business regulation to provide liability coverage to rental property
13	owners shall exclude, after October 31, 2005, coverage for losses or damages caused by lead
14	poisoning. The department of business regulation shall not permit, authorize or approve any
15	exclusion for lead poisoning, except as specifically provided for by this chapter, that was not in
16	effect as of January 1, 2000, and all previously approved exclusions shall terminate October 31,
17	2005. As of November 1, 2005, coverage for lead poisoning shall be included in the policy or
18	offered by endorsement, as set forth in this section.
19	(c) All insurers issuing commercial lines insurance policies and personal lines insurance
20	policies covering pre-1978 rental housing in compliance with: (i) the requirements of this chapter
21	for lead hazard mitigation; (ii) with the requirements of chapter 24.6 of title 23 for lead safe
22	housing, within the state of Rhode Island; or (iii) relying on a valid certificate of compliance or
23	conformance shall, effective November 1, 2005, include in the policy coverage for liability for
24	injury, damage, or death resulting from occurrences of lead poisoning in an amount equal to and
25	no less than the underlying policy limits for personal injury/bodily injury coverage provided
26	under the policy so issued to a residential rental property owner. The property owner shall, if
27	requested by the insurer, present to the insurance company, either: (1) proof of certificate of
28	compliance of an independent clearance inspection and of any affidavit of visual inspection
29	required to maintain the validity of the independent clearance inspection; (2) proof of meeting the
30	mitigation standard in the form of a clearance exam showing that lead hazards are mitigated; or
31	(3) proof of abatement. This proof shall be prima facie evidence of compliance with the
32	requirements of this chapter. In any subsequent renewal, the insurer may require any continuing
33	proof whenever the certificate is expiring, has expired, or is otherwise invalidated.
34	(d) For residential rental properties that have not been brought into compliance with the
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1	requirements for lead hazard mitigation pursuant to this chapter or for lead hazard reduction
2	pursuant to chapter 24.6 of title 23 or which do not have a valid certificate of compliance or
3	conformance, effective November 1, 2005, for residential rental property owners who own or
4	owned a substantial legal or equitable interest in one property and have had no more than one un-
5	remediated dwelling unit at which a child was poisoned prior to November 1, 2005, and for
6	residential property owners who own or owned more than one property and have had no more
7	than two (2) un-remediated dwelling units at which a child was poisoned prior to November 1,
8	2005, an insurance company, which provides liability insurance to a residential rental property
9	owner, shall either offer lead liability coverage for bodily injury, which shall be equal to the
10	underlying limits of liability coverage for the property, by endorsement, or shall assist the insured
11	in placing lead liability coverage through the program commonly known as the Rhode Island
12	FAIR Plan either directly or through one of the insurance company's agents or brokers, and the
13	Rhode Island FAIR Plan shall make available liability coverage for damages caused by lead
14	poisoning to the class of property owners described in this subsection. If the insured seeks lead
15	liability coverage with the FAIR Plan, the FAIR Plan may use reasonable underwriting
16	guidelines, as approved by the department of business regulation, to underwrite the property. Any
17	property owner, who fails to remediate a property, after a notice of violation subsequent to
18	October 31, 2005, and any property which is not remediated after notice of a violation subsequent
19	to October 31, 2005, shall not be eligible to receive an offer of coverage and shall be subject to
20	cancellation and non-renewal of that coverage if the property is not found to be in compliance
21	with the lead law within ninety (90) days of the date of issuance of the notice by the director, or
22	the housing resources commission, as applicable.
23	(e) Rates for lead poisoning liability coverage, as specified in subsections (c) and (d) of
24	this section, shall be approved by the department of business regulation, notwithstanding any
25	limits on rate approval authority established by the provisions of chapter 65 of title 27 and subject
26	to the provisions of §§ 27-44-6 and 27-44-7, using the following standards:
27	(1) That they are not excessive, inadequate, or unfairly discriminatory;
28	(2) That consideration is given to:
29	(i) Past and prospective loss experience within the state of Rhode Island;
30	(ii) A reasonable margin for profits and contingencies;
31	(iii) Past and prospective expenses specifically applicable to the state of Rhode Island:
32	(iv) Any other data, including data compiled in other states, especially regarding
33	experience data for lead liability coverage, that the department may deem necessary; and
34	(v) Past history of the owner with regard to lead poisoning or any associated violations.
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1	(f) The department of business regulation shall have the authority and is empowered,
2	consistent with the requirements of chapter 35 of this title, to promulgate rules and regulations to
3	enable it to compile and analyze data and to make determinations with regard to the availability
4	of and rates for lead liability coverage. In order to effect the purposes of this section insurers shall
5	file, on or before October 1, 2004, the proposed language of endorsements for lead liability
6	coverage and the proposed rates for that coverage with the department.
7	(g) All endorsements, rates, forms and rules for lead liability coverage approved by the
8	department of business regulation to be effective on or after July 1, 2004 are hereby extended to
9	be effective November 1, 2005. Prior to November 1, 2005, insurers and advisory organizations
10	shall continue to utilize all endorsements, rates, forms and rules in effect on June 30, 2004 for
11	lead liability coverage. The department shall not approve any new endorsements, rates, forms or
12	rules for lead liability coverage in pre-1978 residential rental properties unless the filings are
13	submitted in accordance with the provisions of this act. The department is hereby authorized to
14	promulgate reasonable rules and regulations to carry out the provisions of this section.
15	42-128.1-10. Right to housing where lead hazards are corrected.
16	(a) Pregnant women and families with children under six (6) years of age shall be deemed
17	to have a right to housing in which lead hazards have been mitigated or abated.
18	(b) Injunctive Relief. Effective November 1, 2005, if the property owner of a rental
19	dwelling fails to comply with such standards for lead hazard mitigation, or abatement, as
20	applicable, a right of private action shall exist that allows households that include an at risk
21	occupant to seek injunctive relief from a court with jurisdiction against the property owner in the
22	form of a court order to compel compliance with requirements for lead hazard control or
23	mitigation. A person who prevails is entitled to an award of the costs of the litigation and
24	reasonable attorneys' fees in an amount to be fixed by the court. Cases brought before the court
25	under this section shall be granted an accelerated hearing.
26	42-128.1-11. Enforcement.
27	(a) The standards for lead hazard control and for lead hazard mitigation in pre-1978
28	housing shall be considered basic housing standards and shall be enforceable through the
29	provisions of this chapter and through procedures established in chapter 24.2 of title 45 and
30	chapter 24.3 of title 45.
31	(b) Minimum Housing Standards and Housing Maintenance and Occupancy Code. In
32	order to establish consistency between state and local programs pertaining to enforcement of
33	standards for housing and housing occupancy and to provide for broadly available, multiple
34	means of identifying instances of noncompliance with this chapter and enforcing the requirements
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1	of this chapter, the following provisions regarding Minimum Housing Standards and Housing
2	Maintenance and Occupancy Code shall be effective:
3	(1) The ordinances, rules, and regulations for "Minimum Housing Standards" adopted
4	pursuant to § 45-24.2-3 shall, on or before November 1, 2005, include provisions for lead hazard
5	control.
6	(2) The Housing Maintenance and Occupancy Code, established by chapter 24.3 of title
7	23, shall, effective November 1, 2005, include provisions consistent with a continuing and
8	ongoing responsibility for lead hazard mitigation as required by the department of health
9	standards.
10	42-128.1-12. Independent evaluation.
11	In order to assure the effectiveness of the lead hazard awareness mitigation program
12	established by this chapter and to recommend any changes, which may be necessary to
13	appropriate, the auditor general shall:
14	(1)(i) Conduct a performance audit for the period ending December 31, 2003, of the
15	duties and responsibilities assigned to the state agencies and to political subdivisions by this
16	chapter and by the Lead Poisoning Prevention Act, chapter 24.6 of title 23, and of the
17	effectiveness of this chapter in meeting its purposes. The auditor general may contract with
18	independent firms and organizations with expertise in lead poisoning prevention and lead hazard
19	mitigation to assist with the evaluation of matters set forth in this subsection.
20	(ii) The auditor general's report shall be submitted to the governor, the speaker of the
21	house, the president of the senate, the chairperson of the housing resources commission and the
22	director of health, on or before March 31, 2005, and shall contain, as appropriate,
23	recommendations: (A) to make the programs established by this chapter and by the Lead
24	Poisoning Prevention Act more effective in achieving their respective purposes; and (B) to
25	address any unreasonable hardships caused by this chapter or likely to be caused by this chapter
26	with its full implementation July 1, 2005.
27	(iii) The performance audit required by this subdivision shall, in addition to the
28	examination of effectiveness of administration and the efficiency and adequacy of state agencies
29	and political subdivisions in the performance of their duties under this chapter and the Lead
30	Poisoning Prevention Act, include consideration of the following matters:
31	(A) The number and type and date of public service announcements required by § 42-
32	128.1-6(1);
33	(B) The availability and distribution of education materials specified by § 42-128.1-
34	6(2)(i);
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1	(C) The number, date and location of lead hazard awareness seminars and the number of
2	persons who have participated in those seminars;
3	(D) The number of "mitigation inspectors," average length of time necessary to conduct
4	the inspections, the cost of meeting standards per inspection, and the availability of inspectors to
5	conduct the inspections, at a reasonable cost needed in the various geographic areas of the state;
6	(E) The availability of programs to assist property owners, especially low and moderate
7	income property owners;
8	(2) Conduct a performance audit for the period ending June 30, 2007, of the duties and
9	responsibilities, as assigned by this chapter, to state agencies and political subdivisions and of the
10	effectiveness of this chapter in meeting its purposes, especially with regard to increasing the
11	supply of housing in which lead hazards have been mitigated and in reducing the incidence and
12	severity of lead poisoning in Rhode Island. The auditor general may contract with independent
13	firms and organizations with expertise in lead poisoning prevention and lead hazard mitigation to
14	assist with the evaluation of matters set forth in this chapter. The auditor general's report shall be
15	submitted to the governor, the speaker of the house, the president of the senate, the chairperson of
16	the housing resources commission and the director of health, on or before January 1, 2008, and
17	shall contain, as appropriate, recommendations:
18	(i) to make the programs established by this chapter more effective in achieving the
19	respective purposes; and
20	(ii) to redress any unreasonable hardships caused by this chapter or likely to be caused by
21	this chapter.
22	42-128.1-13. Rhode Island lead hazard technical assistance service.
23	(a) Establishment and purposes. (1) The Rhode Island housing resources commission
24	shall establish a "Rhode Island lead hazard technical assistance service" program for the purposes
25	of providing technical assistance to property owners to achieve compliance with this chapter and
26	the Lead Poisoning Prevention Act, chapter 24.6 of title 23.
27	(2) The services of the program shall subject to appropriation, include, but shall not be
28	limited to: evaluation of the need for lead hazard mitigation in a dwelling; review of independent
29	inspection results; identification of and arranging funding for conduction lead hazard abatement
30	and mitigation, and supplying any materials, assistance, and services that may be needed by
31	property owners to achieve compliance with this chapter and the Lead Poisoning Prevention Act
32	in an affordable manner.
33	(b) Historic properties. On or before November 1, 2005, the housing resources
34	commission, in conjunction with the historic preservation and heritage Commission, shall initiate
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1	the following activities to assist owners of historic properties to comply with the provisions of
2	this chapter: (i) provide technical assistance; (ii) identify financial resources available for
3	compliance; and (iii) seek additional resources for this purpose.
4	(c) Cooperation with Rhode Island housing and mortgage finance corporation. The
5	housing resources commission is hereby authorized to cooperate with the Rhode Island housing
6	and mortgage finance corporation in putting the provisions of this section into effect, and the
7	Rhode Island housing and mortgage finance corporation is hereby authorized to exercise its
8	powers under § 42-55-5.1 to provide for the implementation of this section.
9	(d) Exercise of powers. The housing resources commission is hereby expressly
10	authorized to exercise any or all of its general powers set forth in § 42-128-7 to accomplish the
11	purpose of this section.
12	SECTION 2. Section 5-20.5-6 in of the General Laws in Chapter 20.5-6 entitled “Real
13	Estate Brokers and Salespersons” is hereby amended to read as follows:
14	5-20.5-6. Duration of licenses – Rules and regulations – Suspension or revocation of
15	licenses.
16	(a) If the director is satisfied that the applicant is competent and trustworthy and is
17	reasonably familiar with the statutes and law relating to real estate, he or she shall issue to the
18	applicant a license to act as a real estate broker or a real estate salesperson. The director shall
19	promulgate rules and regulations mandating the term of license for each category of license
20	issued pursuant to this chapter. No license shall remain in force for a period in excess of three (3)
21	years. Any fee for the initial issuance of a license or for renewal of a license issued pursuant to
22	this chapter is determined by multiplying the current annual fee by the term of years of the license
23	or renewal. The fee for the total number of years of the initial license or of the renewal shall be
24	paid in full prior to the issuance of the respective license. The license shall be renewed upon
25	payment of the renewal fee, and proof of completion of any continuing education requirements as
26	set forth in the rules and regulations issued by the department of business regulation. Any license
27	issued or renewed may be suspended or revoked by the director, for cause, prior to the expiration
28	date. The director shall issue reasonable rules and regulations with the consent of the majority of
29	the Rhode Island real estate commission governing the conduct of licensed real estate brokers and
30	salespersons, these rules and regulations shall be designed to implement the laws and policies of
31	this state and to protect the interests of the public.
32	(b) Any rules or regulations promulgated with regard to the requirement of continuing
33	education for the renewal of any real estate broker's and/or salesperson's license whose
34	application for an initial broker's and/or salesperson's license is approved within one hundred
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1	eighty (180) days of the expiration date of his or her initial license is not subject to the continuing
2	education requirement at the time of his or her first renewal. The director, after a due and proper
3	hearing, may suspend, revoke, or refuse to renew any license upon proof that it was obtained by
4	fraud or misrepresentation or that the holder of the license has been guilty of fraud or
5	misrepresentation or criminal acts in the performance of his or her functions, or upon proof that
6	the holder of the license has violated this statute or any rule or regulation issued pursuant to this
7	statute.
8	(c) The director shall, for licenses issued or renewed after July 1, 2004, require proof of,
9	reasonable familiarity with and knowledge of duties and responsibilities established by the Lead
10	Poisoning Prevention Act, chapter 24.6 of title 23 of the general laws, and the Lead Hazard
11	Mitigation Act, chapter 128.1 of title 42 of the general laws. Notwithstanding the provisions of
12	subsection (b) above, the requirements of this subsection shall apply to first renewals when
13	licenses were initially issued before July 1, 2004. This subsection shall be put into force and
14	effect by the director in the manner set forth in chapter 128.1 of title 42 24.6 of title 23 and with
15	the advice of the Rhode Island Real Estate Commission.
16	SECTION 3. Section 5-20.8-11 of the General Laws in Chapter 20.8-11 entitled “Real
17	Estate Sales Disclosures” is hereby amended to read as follows:
18	5-20.8-11. Lead inspection requirement.
19	(a) Every contract for the purchase and sale of residential real estate (1-4 family) built
20	prior to 1978 located in the state shall provide that potential purchasers be permitted a ten (10)
21	day period, unless the parties mutually agree upon a different period of time, to conduct a risk
22	assessment or inspection for the presence of lead exposure hazards before becoming obligated
23	under the contract to purchase.
24	(b) Failure to include the provision required in subsection (a) of this section in the
25	purchase and sale agreement for residential real estate does not create any defect in title;
26	provided, that each violation of this section by the seller or his or her agent is subject to a civil
27	penalty of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
28	(c) Failure to provide inspection results and/or educational materials pursuant to
29	department regulations required by § 23-24.6-16(a) does not create any defect in title; provided,
30	that each violation of this section by the seller or his or her agent is subject to a civil penalty of
31	not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
32	(d) Failure to include the purchase and sale agreement provision required in subsection
33	(a) of this section, failure to provide inspection results pursuant to § 23-24.6-16(a), or inspection
34	results which show a lead exposure hazard as defined at § 23-24.6-4(12)(13) entitle the purchaser
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1	to void the purchase and sale agreement by providing notice, in writing, to the seller prior to the
2	transfer of the title at closing.
3	SECTION 4. Sections 23-24.6-2, 23-24.6-3, 23-24.6-4, 23-24.6-5, 23-24.6-6, 23-24.6-7,
4	23-24.6-11, 23-24.6-14, 23-24.6-15, 23-24.6-16, 23-24.6-17, 23-24.6-18, 23-24.6-20, 23-24.6-23,
5	23-24.6-26, and 23-24.6-27 of the General Laws in Chapter 23-24.6 entitled “Lead Poisoning
6	Prevention Act” are hereby amended to read as follows:
7	23-24.6-2. Legislative findings.
8	The general assembly finds, upon the report of the environmental lead task force and the
9	reports, hearings, and records of its own committees and of federal agencies including the
10	environmental protection agency and centers for disease control, that:
11	(1) Environmental exposures to even low levels of lead increase a child's risks of
12	developing permanent learning disabilities, reduced concentration and attentiveness and behavior
13	problems, problems which may persist and adversely affect the child's chances for success in
14	school and life.
15	(2) Childhood lead poisoning is caused by environmental exposure to lead. The most
16	significant sources of environmental lead are lead based paint in older housing and house dust
17	and soil contaminated by this paint.
18	(3) Childhood lead poisoning is completely preventable.
19	(4) Rhode Island does not currently have a comprehensive strategy a centralized authority
20	in place for preventing childhood lead poisoning. As a result, tens of thousands of Rhode Island's
21	children are poisoned by lead at levels believed to be harmful with most of these poisoned
22	children going undiagnosed and untreated.
23	(5) Childhood lead poisoning is dangerous to the public health, safety, and general
24	welfare of the people and necessitates excessive and disproportionate expenditure of public funds
25	for health care and special education, causing a drain upon public revenue.
26	(6) There has been an insufficient level of lead hazard abatement in Rhode Island's rental
27	housing stock.
28	(7) A consolidated approach under the department of health combined with current
29	financing options for property owners will increase compliance and reduce the incidents of
30	childhood lead poisoning.
31	(8) The US Department of Housing and Urban Development has promulgated regulations
32	for lead hazard control that apply to housing that is federally assisted and require inspections with
33	dust testing.
34	(6)(9) The enactment and enforcement of this chapter is essential to the public interest. It
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1	is intended that the provisions of this chapter be liberally construed to effectuate its purposes.
2	(7)(10) The magnitude of the childhood lead poisoning in Rhode Island's older homes
3	and urban areas is a result of approved use of lead based materials over an extended period in
4	public buildings and systems and private housing that a comprehensive approach is necessary to
5	alleviate the cause, identify and treat the children, rehabilitate the affected housing where young
6	children reside, and dispose of the hazardous material. Rhode Island presently does not have the
7	public or the private resources to handle the total problem, requiring prioritizing on a need basis.
8	23-24.6-3. Declaration of purposes.
9	The purposes of this chapter are:
10	(1) to protect the public health and public interest by establishing a comprehensive
11	program to reduce exposure to environmental lead and prevent childhood lead poisoning, the
12	most severe environmental health problem in Rhode Island; and
13	(2) to establish rigorous, systematic enforcement of requirements for the reduction of lead
14	hazards in properties where children have been lead poisoned; and
15	(3) to increase the supply of housing stock in Rhode Island which is at a minimum lead
16	safe, and
17	(4) to resolve disjointed insurance practices arising from lead liabilities exclusions; and
18	(3)(5) to define the role of the department of health as the lead state agency charged with:
19	(i) defining lead poisoning, (ii) establishing programs for screening persons, especially children
20	under the age of six (6) years, who are at risk of lead poisoning, (iii) setting standards for
21	eliminating and reducing lead hazards in buildings and premises, including dwellings where a
22	child under the age of six (6) years who has been lead poisoned resides, (iv) providing
23	information to the public and segments thereof about the risks of lead poisoning, and (v) initiating
24	enforcement actions against persons who violate the provisions of this chapter or regulations
25	promulgated pursuant to this chapter. The goal of this chapter is to reduce the incidence of
26	childhood lead poisoning in Rhode Island to the greatest extent feasible.
27	23-24.6-4. Definitions.
28	For the purposes of this chapter:
29	(1) "At-risk occupant" means a person under six (6) years of age, or a pregnant woman,
30	who has been a legal inhabitant in a dwelling unit for at least thirty (30) days; provided, however,
31	that a guest of any age shall not be considered an occupant for the purposes of this chapter.
32	(2) "Childhood lead poisoning" means a confirmed venous blood lead level, measured in
33	micrograms of lead per deciliter of whole blood, established by rule by the Rhode Island
34	department of health based on the best available information about the effects of elevated blood
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1	lead levels.
2	(2)(3) "Comprehensive environmental lead inspection" means the inspection of any
3	structure or premises for the presence of lead in various media and includes sampling as may be
4	necessary or expedient in order to determine compliance in the structure or premises with
5	standards for being lead safe or lead free.
6	(3)(4) "Department" means the state department of health.
7	(4)(5) "Director" means the director of health.
8	(5)(6) "Dwelling" means any enclosed space which is wholly or partly used or intended
9	to be used for living or sleeping by human occupants.
10	(6)(7) "Dwelling unit" means any room or group of rooms located within a dwelling and
11	forming a single habitable unit with facilities which are used or intended to be used for living,
12	sleeping, cooking, and eating.
13	(8) “Housing for the elderly or persons with disabilities” means any residential housing
14	which is either reserved for persons sixty-two (62) years of age or older or persons with
15	disabilities at the time of initial occupancy.
16	(7)(9) "Environment intervention blood lead level" means a confirmed concentration, in a
17	person under six (6) years of age, of lead in whole blood of greater than or equal to twenty (20)
18	micrograms per deciliter for a single test or for fifteen (15) to nineteen (19) micrograms per
19	deciliter for two (2) tests taken at least three (3) months apart or as defined by the department the
20	reference level defined by the department’s regulations consistent with regulations adopted by the
21	U.S. Department of Housing and Urban Development.
22	(8)(10) "Environmental lead hazard reduction" means activities undertaken by or on
23	behalf of a property owner in order to achieve lead free or lead safe status pursuant to the
24	requirements of this chapter.
25	(9)(11) "Inspection" means the inspection, other than a comprehensive environmental
26	lead inspection, of any structure or premises undertaken to determine compliance with the
27	requirements of this chapter or with orders issued pursuant to this chapter.
28	(10)(12) "Insurer" means every medical service corporation, hospital service corporation,
29	health maintenance organization, or other insurance company offering and/or insuring health
30	services; the term includes any entity defined as an insurer under § 42-62-4.
31	(11)(13) "Lead contractor" means any person or entity engaged in lead hazard reduction
32	as a business includes consultants who design, perform, oversee, or evaluate lead hazard
33	reduction projects undertaken pursuant to the requirements of this chapter. and licensed pursuant
34	to the department’s regulations.
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1	(12)(14) "Lead exposure hazard" means a condition that presents a clear and significant
2	health risk to occupants of the dwelling, dwelling unit, or premises, particularly where there are
3	children under the age of six (6) years.
4	(13)(15) "Lead free" means that a dwelling, dwelling unit, or premises a medium either
5	contains no lead or contains lead in amounts less than the maximum acceptable environmental
6	lead levels established by department’s of health rules and regulations.
7	(14)(16) "Lead hazard reduction" means any action or actions designed to reduce
8	exposure to toxic levels of lead which impose an unacceptable risk of exposure in any dwelling or
9	dwelling unit, where a child under the age of six (6) years, with environmental intervention blood
10	lead level or greater resides, or on any premises and may include, but is not limited to: repair,
11	enclosure, encapsulation, or removal of lead based paint and/or lead contaminated dust, soil or
12	drinking water; relocation of occupants; and cleanup measures or ongoing maintenance measures,
13	which may include activities and/or measures that do not present an undue risk to children under
14	age six (6) and can be performed by, or on behalf of, the property owner, without the person
15	performing such activities being licensed or certified lead abatement, interim controls, or a
16	combination of the two, intended to correct lead hazards identified in a lead inspection report or
17	standard treatments to remove lead-based paint and/or minimize lead exposure, which may
18	include measures to reduce the concentration of lead in paint, dust, soil, or drinking water, using
19	approved treatments and work methods specified in the department's rules and regulations.
20	(15)(17) "Lead safe" means that a dwelling, dwelling unit, or premises a medium has
21	undergone sufficient lead hazard reduction to ensure that no significant environmental lead
22	hazard is present and includes but is not limited to covering and encapsulation.
23	(16)(18) "Occupant" means any person who legally resides in, or regularly uses, a
24	dwelling, dwelling unit, or structure; provided, however, that a guest of any age shall not be
25	considered an occupant for the purposes of this chapter.
26	(17)(19) "Owner" means any person who, alone or jointly or severally with others:
27	(i) Shall have legal title to any dwelling or dwelling unit with or without accompanying
28	actual possession of it, or
29	(ii) Shall have charge, care, or control of any dwelling or dwelling unit as owner or agent
30	of the owner, or an executor, administrator, trustee, or guardian of the estate of the owner. Any
31	person representing the actual owner shall be bound to comply with the provisions of this chapter
32	and with rules and regulations adopted pursuant to this chapter to the same extent as if that person
33	were the owner. An agent of the owner excludes real estate and property management functions
34	where the agent is only responsible for the property management and does not have authority to
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1	fund capital and/or major property rehabilitation on behalf of the owner.
2	(iii) For purposes of publicly owned property only, the owner shall be defined to be the
3	chief executive officer of the municipal or state agency which owns, leases, or controls the use of
4	the property.
5	(18)(20) "Person" means any individual, firm, corporation, association, or partnership and
6	includes municipal and state agencies.
7	(19)(21) "Premises" means a platted lot or part thereof or unplatted lot or parcel of land,
8	or plot of land, occupied by a dwelling or structure and includes any building, accessory structure,
9	or other structure thereon which is or will be frequently used by children under the age of six (6)
10	years.
11	(20)(22) "Program" means the comprehensive environmental lead program established by
12	this chapter.
13	(21)(23) "State inspector" means the director, his or her designee, or any inspector
14	employed by the department of health who is authorized by the director to conduct
15	comprehensive environmental lead inspections and/or other inspections for the department.
16	(24) "Temporary housing" means any place of residence that is rented for no more than
17	one hundred (100) consecutive days per calendar year to the same tenant, where no lease renewal
18	or extension can occur, and any emergency shelter intended for night-to-night accommodation.
19	23-24.6-5. Environmental lead program.
20	(a) There is established within the department of health an environmental lead program
21	which shall be responsible for creating a coordinated and comprehensive program for lead
22	poisoning prevention, including screening and detection, education, lead hazard reduction, and
23	enforcement. The program shall exercise any and all authorities of the department which may be
24	necessary and appropriate, including but not limited to promulgating and enforcing regulations,
25	which regulations shall set forth a general framework for actions to be taken in response to
26	childhood lead poisoning at different blood lead levels.
27	(b) The department shall develop an educational program regarding environmental lead
28	exposures and, lead poisoning, and strategies for lead hazard reduction.
29	(c) The department shall promulgate regulations for acceptable environmental lead levels
30	in dwellings, where a child under the age of six (6) years with environmental intervention blood
31	lead level or greater resides, and in buildings or properties frequently used by children under the
32	age of six (6) years, including standards for lead on painted surfaces and surface coatings,
33	drinking water, household dusts, and soil.
34	23-24.6-6. Interagency coordinating council coordination on environmental lead.
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1	(a) There is established an The department is authorized to oversee interagency
2	coordination activities coordinating council on environmental lead, by the department of health
3	shall include: consisting of six (6) members.
4	(b) The purpose of the council which shall be as follows:
5	(1) To coordinate the activities of its member agencies with respect to: (i) environmental
6	lead policy; (ii) the development of educational materials; (iii) drafting regulations which have as
7	their purpose reducing or preventing lead poisoning; and (iv) enforcement of laws, regulations,
8	and ordinances pertaining to lead poisoning and lead poisoning prevention.
9	(2) To recommend the adoption of policies with regard to the detection and elimination of
10	the hazards to the public posed by exposure to lead in the environment;
11	(3) To recommend the adoption of policies with regard to the screening and treatment of
12	individuals suffering from elevated exposures to environmental lead; and
13	(4) To report on or before March 1 of each year to the governor, speaker of the house and
14	the president of the senate on both the progress of the comprehensive environmental lead program
15	and recommendations for any needed changes in legislation, which report shall at a minimum: (i)
16	provide by city and town, the incidence and levels of lead poisoning; (ii) describe educational
17	programs; (iii) summarize regulations adopted pursuant to the provisions of this chapter and
18	chapter 128.1 of title 42, and state the number of enforcement actions pursuant to this chapter
19	initiated, the number completed or closed due to successful remediation of lead hazards, the
20	number completed or closed for other reasons (which reasons shall be explained), and the number
21	that remain open (including information on how long such actions have been open and the
22	reasons they have not been completed).
23	(c) The members of the council shall be as follows:
24	(1) There shall be five (5) ex officio members: the director, the director of environmental
25	management, the director of human services, the attorney general, and the executive director of
26	the housing resources commission or their designees.
27	(2) There shall be one local government official, who shall have knowledge of lead
28	hazard reduction programs at the local level, appointed by the president of the Rhode Island
29	League of Cities and Towns.
30	(3) [Deleted by P.L. 2002, ch. 187, § 2 and by P.L. 2002, ch. 188, § 2.]
31	(d) The members shall elect from among their members a chairperson, a vice chairperson,
32	and secretary.
33	(e) The council shall meet at the call of the chairperson, but not less than quarterly. The
34	director shall provide any meeting and hearing rooms and secretarial staff that the council may
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1	require.
2	23-24.6-7. Screening by health care providers.
3	(a) The department shall promulgate regulations establishing the means by which and the
4	intervals at which children under six (6) years of age shall be screened for lead poisoning. The
5	department is also authorized to require screening for lead poisoning in other high risk groups.
6	(b) Each physician registered or licensed by Rhode Island or any agency of Rhode Island
7	shall screen children under six (6) years of age for lead poisoning at the intervals and using the
8	methods specified in the regulations adopted pursuant to subsection (a). Each licensed, registered
9	or approved health care facility serving children under six (6) years of age, including but not
10	limited to hospitals, clinics, and health maintenance organizations, shall take appropriate steps to
11	ensure that their patients receive screening for lead poisoning at the intervals and using the
12	methods specified in these regulations.
13	(c) All health care programs funded in whole or in part with state money and having child
14	health components shall include, require, and/or provide for screening children under six (6)
15	years of age for lead poisoning at the intervals and using the methods specified in the regulations
16	promulgated under this section.
17	(d) The provisions of this section shall not apply if the parents of the child object to the
18	child undergoing blood lead screening on the grounds that the screening conflicts with their
19	religious tenets and practices.
20	(e) All blood samples taken by physicians or other health care providers licensed in
21	Rhode Island or by licensed, registered, or approved health care facilities in Rhode Island from
22	children under the age of six (6) years for the purpose of screening for blood lead level shall be
23	sent the state laboratory in to a laboratory certified, licensed, and/or approved by the department
24	of health for laboratory analysis.
25	(f) The department shall, at least annually, analyze and summarize all of the lead
26	screening information provided by physicians, health care facilities, and laboratories and provide
27	this information to all other local and state agencies involved with case management and lead
28	hazard reduction. An analysis and summary of the data shall also be made available, at least
29	annually, to the health care community, to the general assembly, and the general public in a
30	format that is easily understandable to non-technical readers.
31	23-24.6-10. Lead screening restricted receipt account.
32	The director shall establish procedures for lead screening, laboratory testing, and
33	reimbursement. The state laboratory services shall be billed to and reimbursed by insurers. Fees
34	shall be set based upon the rates paid by the insurers to private laboratories for blood lead
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1	analysis. All reimbursement fees paid to the department shall be deposited into the general fund.
2	General revenue appropriations Appropriations for the lead screening program shall be used for:
3	(1) Administration of the comprehensive environmental lead program, including
4	performance of environmental lead inspections by state inspectors for enforcement purposes, and
5	development, administration, and coordination of a comprehensive educational program on
6	environmental lead exposures and lead poisoning;
7	(2) Provision of comprehensive environmental lead inspections and technical assistance
8	on appropriate environmental lead hazard reduction to families of significantly lead poisoned
9	Rhode Island children and to families of uninsured and underinsured lead poisoned Rhode Island
10	children on a priority basis by blood lead level; regulations clearly identifying the blood lead
11	level corresponding to significant lead poisoning and the mechanism for prioritizing by blood
12	lead level shall be promulgated;
13	(3) Provision of comprehensive environmental lead inspections and technical assistance
14	on appropriate environmental lead hazard reduction to preschools, day care facilities, nursery
15	schools, public and private elementary schools, and foster homes and shelters serving children
16	under the age of six (6) years;
17	(4) Provision of funds to the department of environmental management for enforcement
18	of fugitive dust regulations designed to reduce or eliminate the hazards caused by removal of
19	leaded paint from the exterior of structures;
20	(5) Administration of a childhood blood lead testing program by the department's
21	division of laboratories, including processing, analyzing, and reporting childhood blood lead
22	samples;
23	(6) Provision of the necessary blood lead screening and follow up blood lead testing for
24	uninsured and underinsured preschool children in Rhode Island; and
25	(7) Development of a data management system which can be used to track cases of lead
26	poisoning to ensure that they receive timely and appropriate medical treatment, to monitor homes
27	for environmental lead inspections and lead hazard reduction, and to investigate the extent of
28	childhood lead poisoning in Rhode Island.
29	23-24.6-11. Reporting of cases of lead poisoning.
30	Any physician registered or licensed by Rhode Island or any agency of Rhode Island or
31	any employee of a licensed, registered, or approved health care facility or employee of a licensed
32	health care facility acting within the scope of his/her practice in making the diagnosis of
33	childhood lead poisoning shall report that diagnosis to the director department within ten (10)
34	business days of the diagnosis.
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1	23-24.6-14. Inspection of child care facilities.
2	The director shall promulgate regulations requiring that as a condition of licensure all
3	preschools, day care facilities, nursery schools,group family child care homes, family child care
4	homes, child care centers, residential facilities, and public and private elementary schools and
5	schoolyards, and public playgrounds, and shelters and foster homes serving children under the
6	age of six (6) years in Rhode Island:
7	(1) Receive comprehensive environmental lead inspections at specified intervals; and
8	(2) Demonstrate that they are either lead free or lead safe.
9	(b) The director, shall, using state inspectors, conduct comprehensive environmental lead
10	inspections for all these facilities at the specified intervals.
11	23-24.6-15. Inspections of rental property.
12	(a) The director shall, in conjunction with the housing resources commission, promulgate
13	regulations to certify lead safe compliance for all residential rental units and permit state lead
14	inspectors or licensed by the department to conduct such lead inspections as may be appropriate
15	in response to any complaint to the department or the housing resources commission, by an
16	occupant or the parent or guardian of any child under the age of six (6) years who is an occupant
17	renting or leasing a dwelling, dwelling unit, or premises of the existence of a lead exposure
18	hazard for a child under the age of six (6) years in that dwelling, dwelling unit, or premises.
19	These regulations will allow for response to the complaints to be prioritized based upon the age of
20	the structure and the nature and degree of hazard present.
21	(b) Whenever a comprehensive environmental lead inspection or other inspection has
22	been performed either pursuant to a complaint or otherwise, the owner and/or any real estate
23	agent or property manager involved in renting or leasing the dwelling, dwelling unit, or premises
24	shall provide the results of the inspection to occupants pursuant to regulations promulgated by the
25	department, as follows:
26	(1) Those persons occupying the dwelling, dwelling unit, or premises at the time the
27	inspection is performed shall be notified of the results within five (5) business seven (7) calendar
28	days after the owner receives the results;
29	(2) All persons who are prospective occupants shall be notified of the inspection results if
30	a significant lead hazard exists, before any lease is signed or before occupancy begins in cases
31	where no lease is signed;
32	(3) This notice provision terminates with the Upon performance of the necessary lead
33	reduction actions required to reach at least the "lead safe" level, the department lead inspector
34	shall provide the owner with a certification of lead reduction lead safe certificate for the dwelling.
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1	(c) Failure to provide inspection results and/or educational materials pursuant to this
2	chapter shall subject the lessor or his or her agent to a civil penalty of not less than one hundred
3	dollars ($100) nor more than five hundred dollars ($500) for each violation.
4	23-24.6-16. Notice prior to residential property transfer.
5	(a) The department shall issue regulations for the disclosure of lead exposure hazards and
6	potential lead exposure hazards in a residential dwelling, dwelling unit, or premise that is offered
7	for sale or lease. These regulations, at the minimum, shall incorporate the requirements of § 1018
8	of the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (PL 102-550), 42
9	U.S.C. § 4852d, shall not be inconsistent with the requirements for lead hazard mitigation
10	established pursuant to the provisions of chapter 128.1 of title 42, and shall additionally require
11	an owner of a residential dwelling, dwelling unit, or premise offered for sale or lease to provide
12	copies of any outstanding notice of violation and of results of any lead inspection performed in
13	the dwelling, dwelling unit, or premise and copies of educational materials developed by the
14	department, including information about the requirements of this section and programs that
15	provide financial assistance for comprehensive environmental lead inspections or lead hazard
16	reduction.
17	(b) The department shall prepare written materials concerning environmental lead
18	exposures and lead hazards which shall be made available to real estate brokers and agents. The
19	materials shall also be made available to the general public by the department.
20	(c) The department of business regulation shall, with regard to its responsibilities for the
21	profession of real estate brokers and salespersons, adopt rules, with the concurrence of the
22	department: (1) requiring proof of reasonable familiarity with the knowledge of duties and
23	responsibilities under the provisions of this chapter for the licensure or renewal of licenses of real
24	estate brokers and salespersons in accordance with § 5-20.5-6; and (2) providing, pursuant to § 5-
25	20.5-18, an educational program for real estate brokers and salespersons regarding such duties
26	and responsibilities.
27	(c)(d) The duties required under this section are not exclusive and do not replace or alter
28	any duty imposed upon the owner to perform lead hazard reduction as required by this chapter.
29	(d)(e) In no instance shall the receipt of the disclosures required by this section operate as
30	or be construed as a bar to relief or in any manner be used as an affirmative defense for an owner,
31	operator, or real estate agent in any statutory or common law action.
32	(e)(f) The department shall establish and maintain a registry of real estate for which a
33	comprehensive environmental lead inspection has been performed. lead safe certificates. The
34	registry shall be cross-indexed by the owners' name, street address, as well as the assessor's lot
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1	and plat number for the applicable city or town.
2	23-24.6-17. Lead hazard reduction.
3	(a) The director shall promulgate lead hazard reduction regulations. These regulations
4	shall:
5	(1) Specify the circumstances under which owners of dwellings, dwelling units, or
6	premises must undertake lead hazard reduction in order to remedy conditions that present a clear
7	and significant health risk to occupants of the dwelling, dwelling unit, or premises;
8	(2) Define lead hazard reduction with respect to both the sources of lead that must be
9	treated and acceptable and unacceptable treatment methods;
10	(3) Require owners to make all reasonable efforts to ensure that occupants are not present
11	during the lead hazard reduction; variances may be granted according to regulations; provided,
12	that the owners are not responsible for providing alternative housing. If the occupants refuse to
13	vacate the premises after all reasonable efforts by the owner to ensure compliance within this
14	section, then the owners are exempt from any liability arising out of the occupants'
15	noncompliance. If the occupants are required to vacate the premises for a three (3) day period or
16	longer, there shall be a pro-rata adjustment or abatement of the rent during the period of lead
17	hazard reduction;
18	(4) Specify containment and clean up measures to be taken as part of lead hazard
19	reduction activities;
20	(5) Contain measures to protect the occupational safety and health of lead inspectors,
21	contractors, supervisors, workers, and other persons who perform lead hazard reduction which
22	may be more, but not less, stringent than applicable federal standards; and
23	(6) Specify the circumstances under which owners of dwellings, dwelling units, or
24	premises must undertake lead hazard reduction or control to at least the lead safe level of to
25	protect occupants and neighbors.
26	(b)(1) Until November 1, 2005, the owner of any dwelling, dwelling unit, or premises
27	shall be considered as an "innocent owner", and liability as to lead poisoning is limited to the
28	reduction of any lead hazard as determined by a comprehensive environmental lead inspection
29	within the requirements of the Housing Maintenance and Occupancy Code, chapter 24.3 of title
30	45. The "innocent owner" provision will cease upon the owner's unreasonable failure to correct
31	any lead paint violation within ninety (90) days of notice as provided in that chapter. Provided,
32	any owner who has received notices on three (3) or more properties shall be presumed to be an
33	unreasonable failure to correct.
34	(2) "Innocent owner" status, and the limits on liability set forth in this subsection, shall
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1	not apply to any incident of childhood lead poisoning reported to the department on or after
2	November 1, 2005, and liability for lead poisonings after November 1, 2005, but shall include
3	such correction of lead hazards as may be required by this chapter.
4	(c)(b) The owner of any dwelling, dwelling unit, or premises who fails to provide for
5	lead hazard reduction as required by department regulations shall be issued a notice of violation
6	by the director in the manner provided by the Housing Maintenance and Occupancy Code,
7	chapter 24.3 of title 45. In addition to any other enforcement authority granted under this chapter,
8	the department shall have the authority to utilize pertinent provisions of that code in enforcing
9	this section in the same manner as an enforcing officer under the code, including but not limited
10	to the provisions of §§ 45-24.3-17 – 45-24.3-21, except that the director or his or her designee
11	may provide a reasonable time up to ninety (90) days for the correction of any violation alleged
12	and, except where there exists a hardship as to financing the lead hazard reduction, or where
13	material, personnel, or weather delays the reduction completion. Except as herein provided, if
14	after ninety (90) days following the date of issuance of a notice of violation by the department,
15	the owner has failed to correct the lead hazards, the department shall issue a second notice of
16	violation.
17	(d)(c)(1) One or more lead paint waste depositories shall be established and be in
18	operation by January 1, 1993. The department of environmental management shall work with the
19	solid waste management corporation to promulgate regulations governing these lead paint waste
20	depositories.
21	(2) Each lead paint waste depository may set fees to cover the costs of lead paint waste
22	storage, reduction, consolidation, incineration, and/or out of state disposal.
23	23-24.6-18. Revisions to Minimum Housing Standards and Housing Maintenance
24	and Occupancy Code.
25	(a) The standards for lead compliance in pre-1978 housing shall be considered basic
26	housing standards and shall be enforceable through the provisions of this chapter and through
27	procedures established in chapter 24.2 of title 45 and chapter 24.3 of title 45.
28	(b) Minimum Housing Standards and Housing Maintenance and Occupancy Code. In
29	order to establish consistency between state and local programs pertaining to enforcement of
30	standards for housing and housing occupancy and to provide for broadly available, multiple
31	means of identifying instances of noncompliance with this chapter and enforcing the requirements
32	of this chapter, the following provisions regarding Minimum Housing Standards and Housing
33	Maintenance and Occupancy Code shall be effective:
34	(1) The ordinances, rules, and regulations for "Minimum Housing Standards" adopted
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1	pursuant to § 45-24.2-3 shall include provisions for lead hazard reduction.
2	(2) The Housing Maintenance and Occupancy Code, established by chapter 24.3 of title
3	45, shall include provisions consistent with a continuing and ongoing responsibility for lead
4	compliance as required by the department’s standards.
5	(c) The rules and regulations for the state building code promulgated pursuant chapter
6	27.3 of title 23, shall not conflict with the requirements in this chapter regarding the construction,
7	rehabilitation, or maintenance of existing buildings.
8	(d) Nothing in this chapter shall alter the responsibilities of owners and occupants, or the
9	authority of enforcing officers, under the Housing Maintenance and Occupancy Code, chapter
10	24.3 of title 45.
11	23-24.6-20. Licensure of environmental lead inspectors and lead contractors,
12	supervisors, and workers.
13	(a) The department shall provide for the certification of training programs for
14	environmental lead inspectors and for lead contractors, supervisors, workers, and other persons
15	engaged in environmental lead-hazard reduction pursuant to the provisions of this chapter. The
16	department shall establish standards and specifications for training courses including, at a
17	minimum, the required length of different training programs, mandatory topics of instruction, and
18	required qualifications for training programs and instructors. Hands on instruction shall be a
19	component of the required training.
20	(b) The department shall establish procedures and issue regulations requiring the
21	licensure of environmental lead inspectors, lead contractors, supervisors, workers, and other
22	persons engaged in environmental lead inspection and/or hazard reduction pursuant to the
23	provisions of this chapter. These regulations:
24	(1) Shall prescribe the requirements for licensure and the conditions and restrictions
25	governing the renewal, revocation, and suspension of licenses. Requirements for licensure and for
26	renewal of licensure shall include, but not be limited to, the following:
27	(i) Compliance with the lead-hazard reduction regulations in § 23-24.6-17; and
28	(ii) Required training of environmental lead inspectors and of lead contractors,
29	supervisors, workers, and other persons engaged in environmental lead-hazard reduction in
30	subjects including, but not limited to, safe work practices, instruction in health risks,
31	precautionary measures, protective equipment, and other practices, including practices to prevent
32	contamination of the residential premises, ambient discharges and ground contamination,
33	respiratory protection, new lead-hazard reduction techniques and technologies, applicable federal
34	and state regulation, and hands-on instruction for equipment and techniques to be used; a
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1	minimum of twenty (20) hours of training shall be required as a condition of licensure for
2	workers; additional hours of training shall be required for supervisors and contractors; a refresher
3	training course shall also be required;
4	(2) May provide for Rhode Island to reciprocally license persons certified and/or licensed
5	by other states with comparable requirements.
6	(c) No person shall enter into, engage in, or conduct comprehensive environmental lead
7	inspections or environmental lead-hazard reduction activities covered by department regulations
8	without having successfully completed a certified training program and without having been
9	licensed by the department. Each trained and licensed person shall be issued a photo identity card.
10	(d) The department shall, in conjunction with the housing resources commission, develop
11	and periodically update lists of all licensed inspectors, contractors, supervisors, workers', and
12	other persons who perform environmental lead-hazard reduction in Rhode Island and make those
13	lists available to interested parties and the public.
14	(e)(1) The department shall enforce the provisions of this section as appropriate and shall
15	have all necessary powers for enforcement.
16	(2) The department may revoke, suspend, cancel, or deny any license, at any time, in
17	accordance with chapter 35 of title 42 if it believes that the terms or conditions of these are being
18	violated, or that the holder of, or applicant for, license has violated any regulation of the
19	department or any other state law or regulation. Any person aggrieved by a determination by the
20	department to issue, deny, revoke, or suspend any license may request an adjudicatory hearing.
21	(3) When any person violates the terms or conditions of any license issued under this
22	section or any state law or regulation, the director shall have the power by written notice to order
23	the violator to cease and desist immediately. The department may file a written complaint with
24	the district court in the jurisdiction in which the violation occurred. Punishment by an
25	administrative fine pursuant to § 23-24.6-27 may be in addition to the suspension of any license.
26	(4) Any state inspector may issue an immediate cease-work order to any person who
27	violates the terms or conditions of any license issued under this section, or any provision of this
28	chapter, or any regulation or order issued under this chapter, if the violation will endanger or
29	materially impair the health or well-being of any occupant, any environmental lead inspector, or
30	any contractor, supervisor, worker, or other person engaged in environmental lead-hazard
31	reduction.
32	(f) Nothing in this section shall be construed to limit the authority of the department of
33	health, the department of labor and training, or the department of environmental management
34	under the provisions of any other law.
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1	23-24.6-23. Compliance and enforcement.
2	(a) Except as provided in this chapter, the inspection, enforcement, and penalties for
3	violations of the provisions of this chapter shall be in accordance with the provisions and
4	procedures set forth in §§ 23-1-19 – 23-1-25. In addition to the provisions for enforcement of this
5	section found elsewhere in this chapter, there shall be the following powers of enforcement,
6	which shall be in addition to other provisions of the general laws pertaining to enforcement of the
7	laws of this state and shall not be deemed to limit or replace such other provisions. The provisions
8	of this section shall be liberally construed and shall be considered an essential responsibility of
9	the state to protect public health and welfare.
10	(b) The department shall establish a comprehensive integrated enforcement program,
11	which shall be designed: (1) to assure that enforcement is certain, predictable, and effective as a
12	means of reducing the incidence of childhood lead poisoning; (2) to direct enforcement efforts to
13	places, areas, and types of structures where there is a high incidence of childhood lead poisoning;
14	and (3) to identify and give priority to addresses where there are multiple instances of childhood
15	lead poisoning and to identify and as consistent with law to provide for the prosecution of persons
16	at whose properties there have been multiple instances of childhood lead poisoning and lead
17	hazards have not been corrected. In order to effectuate the provisions of this subsection, the
18	department of health: (i) shall maintain a list as a public document of the addresses of properties
19	that are not lead safe and in which more than three (3) children lived at the time their blood was
20	tested for lead concentration and at least two (2) of these children were lead poisoned, (ii) shall
21	maintain a database with the names and addresses of owners of rental housing at the time any
22	child residing in the rental housing was tested positive for lead poisoning for which a second
23	notice of violation has been issued and lead hazards have not been corrected as required pursuant
24	to the provisions of this chapter, which database shall be public and provided to government and
25	nonprofit agencies that are attempting to prevent lead poisoning or to enforce lead poisoning
26	regulations, and (iii) shall notify the attorney general of all second notices of violation, issued
27	pursuant to the provisions of § 23-24.6-17, to which there has not been a response meeting the
28	requirements of law within thirty (30) days after the notice.
29	(c) The attorney general shall maintain an office of lead advocate, which office shall
30	have, in addition to any other powers that the attorney general may assign to it, the power:
31	(1) To investigate any alleged failures to comply with the lead hazard reduction, to
32	initiate either a civil or criminal cause of action, or both, to compel compliance via injunctive
33	relief and/or impose penalties and fines, as appropriate;
34	(2) To bring any actions that may be necessary or appropriate to secure the performance
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1	by state agencies and political subdivisions the duties assigned to them by this section;
2	(3) To notify in writing on behalf of the attorney general any person, who has received a
3	second notice of violation issued by the department of health and has not responded consistent
4	with the requirements of law within thirty (30) days, of the person's obligations under law and the
5	potential penalties for continued violations; and
6	(4) To establish guidelines to prevent retaliatory actions by property owners against
7	tenants on the basis of complaints or notices of violations arising from this chapter and chapter
8	128.1 of title 42, or based on the presence of a pregnant woman or child under age six (6) who in
9	any manner seeks to enforce their right to housing in which lead hazards have been corrected in
10	accordance with this chapter or chapter 128.1 of title 42. These guidelines shall define retaliatory
11	actions, including, but not limited to, arbitrary termination of tenancy or other form of
12	constructive eviction, arbitrary refusal to renew a lease, or arbitrary and unreasonable increase in
13	rent or decrease in services to which the tenant is entitled, for all tenants, whether or not they
14	have leases or are tenants at will. It shall be unlawful to take retaliatory actions against tenants
15	arising from enforcement of the provisions of this chapter or chapter 128.1 of title 42; this
16	prohibition against retaliatory actions applies whether or not the tenant has a lease. Damages and
17	remedies for retaliatory actions under this paragraph shall be as provided for in chapter 18 of title
18	34.
19	(5) No provision of this chapter shall derogate the common law or any statutory authority
20	of the attorney general, nor shall any provision be construed as a limitation on the common law or
21	statutory authority of the attorney general.
22	(d) Receivership of properties not meeting standards. Following the second notice of
23	violation, issued by the department of health pursuant to the provisions of § 45-24.3-17(e) for
24	failure to meet the applicable lead hazard reduction for rental dwellings occupied by a pregnant
25	woman or a child under the age of six (6) years unless the violations alleged to exist are corrected
26	or a plan for correction has been approved by the department, the unit may be considered
27	abandoned and a public nuisance, which is a menace to public health, as the term "abandon" or
28	"abandonment" and "public nuisance" defined by § 34-44-2. In those instances the department of
29	health, the attorney general, a nonprofit corporation as provided for in § 34-44-3, or the city or
30	town in which the unit is located shall have the specific power to request the court to appoint a
31	receiver for the property, the court in such instances may specifically authorize the receiver to
32	apply for loans, grants and other forms of funding necessary to correct lead hazards and meet lead
33	mitigation hazard reduction standards, and to hold the property for any period of time that the
34	funding source may require to assure that the purposes of the funding have been met.
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1	(e) High risk premises and dwellings. (1) The department of health shall notify the
2	property owner where both the following conditions have been met: (i) there have been three (3)
3	or more at risk children under the age of six (6) years with at least environmental intervention
4	blood levels and (ii) fifty percent (50%) of children under the age of six (6) years from the
5	premises who have been tested have had at least environmental intervention blood lead levels,
6	that the premises present a high risk of lead poisoning.
7	(2) A property owner who receives notice that the premises are high risk: (i) shall have
8	thirty (30) days in which to conduct a comprehensive lead inspection that shows that lead hazards
9	have been corrected to the lead safe standard, or (ii) shall present a compliance schedule to the
10	department of health to meet the lead safe standard, which compliance schedule shall be subject
11	to approval by the department of health and shall provide for achieving the lead hazard reduction
12	within ninety (90) days. The requirements of the compliance schedule shall be deemed to have
13	been met if a comprehensive lead inspection shows that the lead safe standard has been met at the
14	premises.
15	(3) A property owner who fails to meet the requirements of subdivision (2) of this
16	subsection shall be notified that the premises are declared unsafe for habitation by children under
17	six (6). A list of property owners so notified and of addresses of premises for which the notice has
18	been given shall be a public record.
19	(4) A copy of this notice shall be sent to the town clerk or recorder of deeds in the city or
20	town where the property is located, to be recorded pursuant to the provisions of chapter 13 of title
21	34. The property owner, so notified, shall post and maintain a warning at the primary entrance to
22	the premises and to each dwelling unit therein declaring that the unit is unsafe for children under
23	six (6) years of age. If the property owner shall fail to make or maintain the posting herein
24	required, the department of health shall post the premises as provided for in § 23-24.6-12(2).
25	(5) Any property owner who receives notice that a dwelling unit is high risk and who
26	fails to abate lead hazards in accordance with a compliance schedule as provided in subdivision
27	(2) of this subsection and there is a subsequent instance of an at risk occupant with an
28	environmental intervention blood lead level, which is attributable in whole or in part to conditions
29	in the dwelling unit, shall be deemed to have committed a criminal offense and may be punished
30	by imprisonment for not more than five (5) years and/or by a fine of not more than twenty
31	thousand dollars ($20,000).
32	(6) Any property owner who receives notice that a dwelling unit is high risk and who has
33	substantially completed the required remediation as determined by the department may become
34	reclassified from "high risk" to "abatement in progress" contingent upon adherence to the
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1	approved compliance schedule for the remaining remediation efforts.
2	(e) Pregnant women and families with children under six (6) years of age shall be deemed
3	to have a right to lead safe housing.
4	(f) Injunctive Relief. If the property owner of a rental dwelling fails to comply with such
5	standards for lead hazard reduction, or abatement, as applicable, a right of private action shall
6	exist that allows households that include an at-risk occupant to seek injunctive relief from a court
7	with jurisdiction against the property owner in the form of a court order to compel compliance
8	with requirements for lead hazard reduction. A person who prevails is entitled to an award of the
9	costs of the litigation and reasonable attorneys' fees in an amount to be fixed by the court. Cases
10	brought before the court under this section shall be granted an accelerated hearing.
11	(g) Nothing in this section shall be deemed to limit or impair the existing rights of parties
12	to take action to compel property owners to improve or maintain property under common law or
13	pursuant to any of the general laws of the state of Rhode Island.
14	23-24.6-26. Rules and regulations.
15	The director is authorized to adopt, modify, or repeal and promulgate rules and
16	regulations as are in accord with the purposes of §§ 23-24.6-1 – 23-24.6-2728, and shall be
17	subject to the Administrative Procedures Act, chapter 35 of title 42. All rules and regulations
18	promulgated by the director shall provide for the use of "lead safe" reduction as the preferred
19	method where possible to meet the requirements of this chapter. The rules shall provide for
20	notification, pursuant to the provisions of § 23-24.6-12, to occupants of a premise, of lead-
21	hazards following a comprehensive environmental lead inspection at the premises when there is a
22	reasonable likelihood that given the age, type, and condition of the premises that significant lead-
23	hazards are present in other dwelling units. The rules shall also specify the required frequency for
24	all refresher training courses.
25	23-24.6-27. Administrative fines.
26	(a) In addition to any other enforcement authority granted under this chapter, whenever
27	on the basis of any information, the department determines that a person has violated, or is in
28	violation of § 23-24.6-12, 23-24.6-13, 23-24.6-14, 23-24.6-15, 23-24.6-15.1 or 23-24.6-17
29	regarding lead hazard reduction, or § 23-24.6-20 regarding licensure, any rule or regulation
30	promulgated pursuant to any of these sections, or any orders issued under any of these sections,
31	rules, or regulations, the director may issue an order fining the person an amount not to exceed
32	five thousand dollars ($5,000) per day for each current or past violation, requiring compliance
33	immediately or within a specified time period, or both. Each day of continued violation may be
34	considered a separate violation. Each violation in any premises may be considered a separate
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1	violation.
2	(b) In addition to any other enforcement authority granted under this chapter, whenever
3	on the basis of any information, the department determines that a person has violated, or is in
4	violation of, § 23-24.6-15 or § 23-24.6-15.1 regarding inspections, any rule or regulation
5	promulgated pursuant to that section, or any orders issued under that section's rules or
6	regulations, the director may issue an order civilly fining the person one hundred dollars ($100)
7	per day for any current or past violation, requiring compliance immediately or within a specified
8	time period, or both. Each day of continued violation may be considered a separate violation.
9	Each violation in any premises may be considered a separate violation.
10	(c) Within thirty (30) days after any order issued pursuant to this section is served, the
11	order shall become final unless the person or persons named in the order request a hearing. Upon
12	that request, the director shall conduct a hearing as soon as reasonably possible.
13	(d) In connection with any proceeding under this section, the director may issue
14	subpoenas for attendance and testimony of witnesses and the production of papers, books,
15	documents, and other materials.
16	(e) If any person liable to pay any civil fine neglects or refuses to pay after demand, the
17	amount, together with interest and any other costs that may accrue, shall be a lien in favor of the
18	state upon only the real property of the person that is subject to the order only after the lien has
19	been entered and recorded in the city/town in which the property is situated.
20	(f) In determining the amount of any civil fine pursuant to this section, the director shall
21	consider the willfulness of the violation; the circumstances and severity of the violation; the
22	ability of the violator to comply; damage or injury to public health and welfare including elevated
23	blood levels of impacted children, environmental damage to the premises and neighborhood,
24	possible economic benefits realized by the violator; the costs incurred by the state; and any other
25	relevant factors.
26	(g) The director shall issue regulations to implement this section. At a minimum, the
27	regulations shall set forth how long after receiving any order from the director or any other notice
28	of a violation a person has to comply with the law before civil fines will be assessed, the
29	circumstances in which no grace period will apply, the circumstances in which any grace period
30	may be extended, and the procedure and times frames to request an extension. The regulations
31	shall also include a penalty matrix to be used as a guide in the calculation of a fine levied
32	pursuant to this section.
33	(h) Any fines levied pursuant to this section shall be done in lieu of any civil penalties
34	issued pursuant to § 45-24.3-18(a), and no housing authority shall issue any civil penalty for the
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1	same violation.
2	SECTION 5. Chapter 23-24.6 of the General Laws entitled "Lead Poisoning Prevention
3	Act" is hereby amended by adding thereto the following sections:
4	23-24.6-15.1. Duties of rental property owners.
5	(a) Property owners of pre-1978 rental dwellings, shall comply with all the following
6	requirements:
7	(1) Dwelling units must be inspected by a licensed lead inspector;
8	(2) All painted surfaces must be assumed to contain lead unless determined otherwise by
9	a licensed lead inspector. Disturbing lead paint for any reason must be done in accordance with
10	the requirements set in regulation by the department;
11	(3) At rental unit turnover provide tenants with:
12	(i) Basic information about lead exposure hazards;
13	(ii) A copy of any inspection report and compliance certificate;
14	(iii) Information about how to give notice of deteriorating conditions; and
15	(iv) Contact information provided by the department.
16	(4) Correct lead hazards within thirty (30) days after notification from the tenant of a
17	dwelling unit with an at-risk occupant, or as provided for by § 34-18-22; and
18	(5) Maintain lead safe standards in dwelling units.
19	(b) New property owners of a pre-1978 rental dwelling that is occupied by an at-risk
20	occupant shall have up to sixty (60) days to meet requirements for lead hazard reduction, if those
21	requirements were not met by the previous owner at the time of transfer, provided that the new
22	property owner has the property visually inspected within thirty (30) business days after assuming
23	ownership to determine conformity with the lead hazard control standard.
24	(c) Notwithstanding the foregoing, the provisions of this section shall not apply to pre-
25	1978 rental dwelling units that are:
26	(1) Temporary housing;
27	(2) Housing for the elderly or persons with disabilities; or
28	(3) Zero-bedroom units.
29	(d) Nothing contained herein shall be construed to prevent an owner who is seeking to
30	obtain lead liability insurance coverage in the policy from complying with the provisions of this
31	chapter, by securing and maintaining a valid and in force letter of compliance or conformance in
32	force.
33	23-24.6-28. Insurance coverage.
34	(a) The department of business regulation shall have the authority and is empowered,
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1	consistent with the requirements of chapter 35 of title 42, to promulgate rules and regulations,
2	which shall enable it to compile and analyze data and to make determinations with regard to the
3	availability of and rates for lead liability coverage.
4	(b) Except as otherwise provided by this chapter, no insurance company licensed or
5	permitted by the department of business regulation to provide liability coverage to rental property
6	owners shall exclude, after October 31, 2005, coverage for losses or damages caused by lead
7	poisoning. The department of business regulation shall not permit, authorize or approve any
8	exclusion for lead poisoning, except as specifically provided for by this chapter, that was not in
9	effect as of January 1, 2000, and all previously approved exclusions shall terminate October 31,
10	2005. As of November 1, 2005, coverage for lead poisoning shall be included in the policy or
11	offered by endorsement, as set forth in this section.
12	(c) All insurers issuing commercial lines insurance policies and personal lines insurance
13	policies covering pre-1978 rental housing in compliance with: (i) the requirements of this chapter
14	for lead hazard reduction; (ii) with the requirements of chapter 24.6 of title 23 for lead safe
15	housing, within the state of Rhode Island; or (iii) relying on a valid certificate of compliance or
16	conformance shall, effective November 1, 2005, include in the policy coverage for liability for
17	injury, damage, or death resulting from occurrences of lead poisoning in an amount equal to and
18	no less than the underlying policy limits for personal injury/bodily injury coverage provided
19	under the policy so issued to a residential rental property owner. The property owner shall, if
20	requested by the insurer, present to the insurance company, either: (1) proof of certificate of
21	compliance of an independent clearance inspection and of any affidavit of visual inspection
22	required to maintain the validity of the independent clearance inspection; (2) proof of meeting the
23	mitigation standard in the form of a clearance exam showing that lead hazards are mitigated; or
24	(3) proof of abatement. This proof shall be prima facie evidence of compliance with the
25	requirements of this chapter. In any subsequent renewal, the insurer may require any continuing
26	proof whenever the certificate is expiring, has expired, or is otherwise invalidated.
27	(d) For residential rental properties that have not been brought into compliance with the
28	requirements for lead hazard reduction pursuant to chapter 24.6 of title 23 or which do not have a
29	valid certificate of compliance or conformance, effective November 1, 2005, for residential rental
30	property owners who own or owned a substantial legal or equitable interest in one property and
31	have had no more than one un-remediated dwelling unit at which a child was poisoned prior to
32	November 1, 2005, and for residential property owners who own or owned more than one
33	property and have had no more than two (2) un-remediated dwelling units at which a child was
34	poisoned prior to November 1, 2005, an insurance company, which provides liability insurance to
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1	a residential rental property owner, shall either offer lead liability coverage for bodily injury,
2	which shall be equal to the underlying limits of liability coverage for the property, by
3	endorsement, or shall assist the insured in placing lead liability coverage through the program
4	commonly known as the Rhode Island FAIR Plan either directly or through one of the insurance
5	company's agents or brokers, and the Rhode Island FAIR Plan shall make available liability
6	coverage for damages caused by lead poisoning to the class of property owners described in this
7	subsection. If the insured seeks lead liability coverage with the FAIR Plan, the FAIR Plan may
8	use reasonable underwriting guidelines, as approved by the department of business regulation, to
9	underwrite the property. Any property owner, who fails to remediate a property, after a notice of
10	violation subsequent to October 31, 2005, and any property which is not remediated after notice
11	of a violation subsequent to October 31, 2005, shall not be eligible to receive an offer of coverage
12	and shall be subject to cancellation and non-renewal of that coverage if the property is not found
13	to be in compliance with the lead law within ninety (90) days of the date of issuance of the notice
14	by the director, or the housing resources commission, as applicable.
15	(e) Rates for lead poisoning liability coverage, as specified in subsections (c) and (d) of
16	this section, shall be approved by the department of business regulation, notwithstanding any
17	limits on rate approval authority established by the provisions of chapter 65 of title 27 and subject
18	to the provisions of §§ 27-44-6 and 27-44-7, using the following standards:
19	(1) That they are not excessive, inadequate, or unfairly discriminatory;
20	(2) That consideration is given to:
21	(i) Past and prospective loss experience within the state of Rhode Island;
22	(ii) A reasonable margin for profits and contingencies;
23	(iii) Past and prospective expenses specifically applicable to the state of Rhode Island:
24	(iv) Any other data, including data compiled in other states, especially regarding
25	experience data for lead liability coverage, that the department may deem necessary; and
26	(v) Past history of the owner with regard to lead poisoning or any associated violations.
27	(f) The department of business regulation shall have the authority and is empowered,
28	consistent with the requirements of chapter 35 of title 42, to promulgate rules and regulations to
29	enable it to compile and analyze data and to make determinations with regard to the availability
30	of and rates for lead liability coverage. In order to effect the purposes of this section insurers shall
31	file, on or before October 1, 2004, the proposed language of endorsements for lead liability
32	coverage and the proposed rates for that coverage with the department of business regulation.
33	(g) All endorsements, rates, forms and rules for lead liability coverage approved by the
34	department of business regulation to be effective on or after July 1, 2004 are hereby extended to
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1	be effective November 1, 2005. Prior to November 1, 2005, insurers and advisory organizations
2	shall continue to utilize all endorsements, rates, forms and rules in effect on June 30, 2004 for
3	lead liability coverage. The department of business regulation shall not approve any new
4	endorsements, rates, forms or rules for lead liability coverage in pre-1978 residential rental
5	properties unless the filings are submitted in accordance with the provisions of this act. The
6	department of business regulation is hereby authorized to promulgate reasonable rules and
7	regulations to carry out the provisions of this section.
8	SECTION 6. Section 42-14-16 of the General Laws in Chapter 42-14 entitled
9	“Department of Business Regulation” is hereby amended to read as follows:
10	42-14-16. Insurance – Administrative penalties.
11	(a) Whenever the director shall have cause to believe that a violation of title 27 and/or
12	chapter 24.6 of title 23 and/or chapters 14, 14.5, or 62 or 128.1 of title 42 or the regulations
13	promulgated thereunder has occurred by a licensee, or any person or entity conducting any
14	activities requiring licensure under title 27, the director may, in accordance with the requirements
15	of the Administrative Procedures Act, chapter 35 of this title:
16	(1) Revoke or suspend a license;
17	(2) Levy an administrative penalty in an amount not less than one hundred dollars ($100)
18	nor more than fifty thousand dollars ($50,000);
19	(3) Order the violator to cease such actions;
20	(4) Require the licensee or person or entity conducting any activities requiring licensure
21	under title 27 to take such actions as are necessary to comply with title 27 and/or chapters 14,
22	14.5, or 62, or 128.1 of title 42, or the regulations thereunder; or
23	(5) Any combination of the above penalties.
24	(b) Any monetary penalties assessed pursuant to this section shall be as general revenues.
25	SECTION 7. Section 44-25-1 of the General Laws in Chapter 44-25 entitled “Real Estate
26	Conveyance Tax” is hereby amended to read as follows:
27	44-25-1. Tax imposed – Payment – Burden.
28	(a) There is imposed, on each deed, instrument, or writing by which any lands,
29	tenements, or other realty sold is granted, assigned, transferred, or conveyed to, or vested in, the
30	purchaser or purchasers, or any other person or persons, by his or her or their direction, or on any
31	grant, assignment, transfer, or conveyance or such vesting, by such persons which has the effect
32	of making any real estate company an acquired real estate company, when the consideration paid
33	exceeds one hundred dollars ($100), a tax at the rate of two dollars and thirty cents ($2.30) for
34	each five hundred dollars ($500) or fractional part of it which is paid for the purchase of property
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1	or the interest in an acquired real estate company (inclusive of the value of any lien or
2	encumbrance remaining at the time of the sale, grant, assignment, transfer or conveyance or
3	vesting occurs, or in the case of an interest in an acquired real estate company, a percentage of the
4	value of such lien or encumbrance equivalent to the percentage interest in the acquired real estate
5	company being granted, assigned, transferred, conveyed or vested), which tax is payable at the
6	time of making, the execution, delivery, acceptance or presentation for recording of any
7	instrument affecting such transfer grant, assignment, transfer, conveyance or vesting. In the
8	absence of an agreement to the contrary, the tax shall be paid by the grantor, assignor, transferor
9	or person making the conveyance or vesting.
10	(b) In the event no consideration is actually paid for the lands, tenements, or realty, the
11	instrument or interest in an acquired real estate company of conveyance shall contain a statement
12	to the effect that the consideration is such that no documentary stamps are required.
13	(c) The tax administrator shall contribute to the distressed community relief program the
14	sum of thirty cents ($.30) per two dollars and thirty cents ($2.30) of the face value of the stamps
15	to be distributed pursuant to § 45-13-12, to the department of health’s lead screening restricted
16	receipts account as established in § 23-24.6-10 the sum of five cents ($.05) per two dollars and
17	thirty cents ($2.30) of the face value of the stamps, and to the housing resources commission
18	restricted receipts account the sum of thirty twenty-five cents ($.30) ($.25) per two dollars and
19	thirty cents ($2.30) of the face value of the stamps. Funds will be administered by the office of
20	housing and community development, through the housing resources commission. The state shall
21	retain sixty cents ($.60) for state use. The balance of the tax shall be retained by the municipality
22	collecting the tax. Notwithstanding the above, in the case of the tax on the grant, transfer,
23	assignment or conveyance or vesting with respect to an acquired real estate company, the tax
24	shall be collected by the tax administrator and shall be distributed to the municipality where the
25	real estate owned by the acquired real estate company is located provided, however, in the case of
26	any such tax collected by the tax administrator, if the acquired real estate company owns property
27	located in more than one municipality, the proceeds of the tax shall be allocated amongst said
28	municipalities in the proportion the assessed value of said real estate in each such municipality
29	bears to the total of the assessed values of all of the real estate owned by the acquired real estate
30	company in Rhode Island. Provided, however, in fiscal years 2004 and 2005, from the proceeds
31	of this tax, the tax administrator shall deposit as general revenues the sum of ninety cents ($.90)
32	per two dollars and thirty cents ($2.30) of the face value of the stamps. The balance of the tax on
33	the purchase of property shall be retained by the municipality collecting the tax. The balance of
34	the tax on the transfer with respect to an acquired real estate company, shall be collected by the
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1	tax administrator and shall be distributed to the municipality where the property for which interest
2	is sold is physically located. Provided, however, that in the case of any tax collected by the tax
3	administrator with respect to an acquired real estate company where the acquired real estate
4	company owns property located in more than one municipality, the proceeds of the tax shall be
5	allocated amongst the municipalities in proportion that the assessed value in any such
6	municipality bears to the assessed values of all of the real estate owned by the acquired real estate
7	company in Rhode Island.
8	(d) For purposes of this Section, the term "acquired real estate company" means a real
9	estate company that has undergone a change in ownership interest if (i) such change does not
10	affect the continuity of the operations of the company; and (ii) the change, whether alone or
11	together with prior changes has the effect of granting, transferring, assigning or conveying or
12	vesting, transferring directly or indirectly, 50% or more of the total ownership in the company
13	within a period of three (3) years. For purposes of the foregoing subsection (ii) hereof, a grant,
14	transfer, assignment or conveyance or vesting, shall be deemed to have occurred within a period
15	of three (3) years of another grant(s), transfer(s), assignment(s) or conveyance(s) or vesting(s) if
16	during the period the granting, transferring, assigning or conveying or party provides the
17	receiving party a legally binding document granting, transferring, assigning or conveying or
18	vesting said realty or a commitment or option enforceable at a future date to execute the grant,
19	transfer, assignment or conveyance or vesting.
20	(e) A real estate company is a corporation, limited liability company, partnership or other
21	legal entity which meets any of the following:
22	(i) Is primarily engaged in the business of holding, selling or leasing real estate, where
23	90% or more of the ownership of said real estate is held by 35 or fewer persons and which
24	company either (a) derives 60% or more of its annual gross receipts from the ownership or
25	disposition of real estate; or (b) owns real estate the value of which comprises 90% or more of the
26	value of the entity's entire tangible asset holdings exclusive of tangible assets which are fairly
27	transferrable and actively traded on an established market; or
28	(ii) 90% or more of the ownership interest in such entity is held by 35 or fewer persons
29	and the entity owns as 90% or more of the fair market value of its assets a direct or indirect
30	interest in a real estate company. An indirect ownership interest is an interest in an entity 90% or
31	more of which is held by 35 or fewer persons and the purpose of the entity is the ownership of a
32	real estate company.
33	(f) In the case of a grant, assignment, transfer or conveyance or vesting which results in a
34	real estate company becoming an acquired real estate company, the grantor, assignor, transferor,
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1	or person making the conveyance or causing the vesting, shall file or cause to be filed with the
2	division of taxation, at least five (5) days prior to the grant, transfer, assignment or conveyance or
3	vesting, notification of the proposed grant, transfer, assignment, or conveyance or vesting, the
4	price, terms and conditions of thereof, and the character and location of all of the real estate assets
5	held by real estate company and shall remit the tax imposed and owed pursuant to subsection (a)
6	hereof. Any such grant, transfer, assignment or conveyance or vesting which results in a real
7	estate company becoming an acquired real estate company shall be fraudulent and void as against
8	the state unless the entity notifies the tax administrator in writing of the grant, transfer,
9	assignment or conveyance or vesting as herein required in subsection (f) hereof and has paid the
10	tax as required in subsection (a) hereof. Upon the payment of the tax by the transferor, the tax
11	administrator shall issue a certificate of the payment of the tax which certificate shall be
12	recordable in the land evidence records in each municipality in which such real estate company
13	owns real estate. Where the real estate company has assets other than interests in real estate
14	located in Rhode Island, the tax shall be based upon the assessed value of each parcel of property
15	located in each municipality in the state of Rhode Island.
16	SECTION 8. Section 45-24.2-7 of the General Laws in Chapter 45-24.2 entitled
17	“Minimum Housing Standards” is hereby amended to read as follows:
18	45-24.2-7. Penalties – District court jurisdiction – Providence housing court – Lead
19	court calendar – Municipal court of the town of North Providence – Review by Supreme
20	Court.
21	(a) Failure to comply with any ordinance, rule, or regulation passed pursuant either to the
22	authority hereof or to any special act governing minimum housing shall constitute a violation, as
23	defined in § 11-1-2, punishable by a fine of not more than five hundred dollars ($500) for each
24	violation, and each day's failure to comply with any provision shall constitute a separate
25	violation. The district court shall have exclusive original jurisdiction of all violations as provided
26	in § 12-3-1; provided, that in the city of Providence, the Providence housing court shall have
27	jurisdiction to try violations occurring within the city of Providence; provided, further, that in the
28	town of North Providence, the municipal court of the town of North Providence shall have
29	jurisdiction to try violations occurring within the town of North Providence, but only in the event
30	that the city shall by ordinance create a court for the purpose of exercising jurisdiction over
31	minimum housing standards. A party aggrieved by any judgment of the district court imposing a
32	fine pursuant to this section may seek review by the supreme court in accordance with § 12-22-
33	1.1.
34	(b) The city council of the city of Providence may establish within its housing court a
	LC000840 - Page 302 of 319
1	separate calendar within the jurisdiction of the housing court to be known and referred to as the
2	"lead court calendar" for the hearing trial and disposition of actions involving lead within
3	buildings and on premises or property in the city of Providence, including, but not limited to,
4	actions brought pursuant to chapters 23-24.6 ("Lead Poisoning Prevention Act") and/or 42-128.1
5	("Lead Hazard Mitigation"). The jurisdiction of the "lead court calendar" of the Providence
6	housing court shall be concurrent with any other court or entity given jurisdiction to hear such
7	matters under the general laws. A justice of the lead court calendar may defer or order a case
8	removed to another court or forum of competent jurisdiction, including, but not limited to, an
9	appropriate administrative agency, if the judge determines that such other court or forum would
10	be a more appropriate court or forum to hear the matter involved.
11	SECTION 9. Section 45-24.3-10 of the General Laws in Chapter 45-24.3 entitled
12	“Housing Maintenance and Occupancy Code” is hereby amended to read as follows:
13	45-24.3-10. General requirements relating to the safe and sanitary construction and
14	maintenance of parts of dwellings and dwelling units.
15	No person shall occupy, as owner or occupant, or let to another for occupancy, any
16	dwelling or dwelling unit, for the purpose of living, which does not comply with the following
17	requirements:
18	(1) Every foundation, floor, roof, ceiling, and exterior and interior wall must be
19	reasonably weathertight, watertight, and damp free, and shall be kept in sound condition and good
20	repair. Floors, interior walls, and ceilings must be sound and in good repair. All exterior wood
21	surfaces, other than decay resistant woods, must be protected from the elements and decay by
22	paint or other protective covering or treatment. Potentially hazardous materials will not be used
23	where readily accessible to children. Walls must be capable of affording privacy for the
24	occupants. Every premise must be graded, drained, free of standing water, and maintained in a
25	clean, sanitary, and safe condition.
26	(2) Potentially hazardous material on the interior surfaces of any dwelling unit, rooming
27	house, rooming unit, or facility occupied by children is prohibited. The interior surfaces include,
28	but are not limited to, window sills, window frames, doors, door frames, walls, ceilings, stair-rails
29	and spindles, or other appurtenances.
30	(3) Lead-based substances are prohibited whenever circumstances present a clear and
31	significant health risk to the occupants of the property, as defined by regulations of the
32	department of health. Where required because of the tenancy of an at-risk occupant, lead hazards
33	must be mitigated as provided for in chapter 128.1 of title 42 or abated pursuant to chapter 24.6 of
34	title 23.
	LC000840 - Page 303 of 319
1	(4) In each instance where there is reason to believe that lead-based substances are
2	present, the enforcing officer shall either ascertain whether the lead hazard mitigation standard
3	has been met, or confirm whether suspect substances are lead-based by arranging for a
4	comprehensive environmental lead inspection which conforms to department of health
5	regulations.
6	(5) In all instances where either compliance with mitigation standards cannot be
7	confirmed by the enforcement officer by review of certifications for the same or where substances
8	are confirmed to be lead-based by an environmental lead inspection, and there exists a lead
9	exposure hazard, the enforcing officer shall identify necessary lead hazard reductions that must be
10	taken pursuant to department of health regulations.
11	(6) In all instances where lead-based substances are identified on a dwelling, a dwelling
12	unit, or premises occupied by a child suffering from "lead poisoning", as defined in the Rhode
13	Island Lead Poisoning Prevention Act, §§ 23-24.6-1 through 23-24.6-2628, the enforcing officer
14	shall consider these instances under "emergencies", pursuant to § 45-24.3-21.
15	(7) During the portion of the year when there is a need for protection against mosquitoes,
16	flies, and other flying insects, every door, opening directly from a dwelling unit to outside space,
17	must have supplied properly fitting screens having at least sixteen (16) mesh and a self closing
18	device; and every window, door, or other device with openings to outdoor space, used or intended
19	to be used for ventilation, must be supplied with screens.
20	(8) Every window located at or near ground level, used or intended to be used for
21	ventilation, and every other opening located at or near ground level which might provide an entry
22	for rodents, must be supplied with adequate screens or other devices that will effectively prevent
23	their entrance.
24	(9) Every dwelling or accessory structure and the premises upon which they are located
25	shall be rodent-proofed and maintained to prevent rodents' harborage.
26	(10) All openings in the exterior walls, foundations, basement, ground or first floors, and
27	roofs which have a half-inch ( 1/2") diameter or more opening shall be rat-proofed in an approved
28	manner if they are within forty-eight inches (48") of the existing exterior ground level
29	immediately below those openings, or if they may be reached by rats from the ground by
30	climbing unguarded pipes, wires, cornices, stairs, roofs, and other items as trees or vines or by
31	burrowing.
32	(11) Skirting, lattice, or other non-rat-proofed enclosures displaying evidence of rat
33	harborage under a porch or any portions of a building must be rat-proofed at all locations where
34	evidence of burrowing or gnawing was found.
	LC000840 - Page 304 of 319
1	(12) In the event that occupancy usages would result in stacking or piling materials, the
2	materials be arranged to prohibit the creation of a harborage area. This can be accomplished by
3	orderly stacking and elevating so that there is a twelve inch (12") opening between the material
4	and the ground level. No stacking or piling of material shall take place against the exterior walls
5	of the structure.
6	(13) All doors, including swinging, sliding, and folding types, must be constructed so that
7	the space between the lower edge of the door and the threshold does not exceed three-eighths inch
8	( 3/8"); provided, further, that the space between sections of folding and sliding doors when
9	closed does not exceed three-eighths inch ( 3/8").
10	(14) Basement floors and/or the floors and areas in contact with the soil, and located at a
11	maximum depth of four feet (4') or less from the grade line, must be paved with concrete or other
12	rat impervious material.
13	(15) Any materials used for rodent control must be acceptable to the appropriate
14	authority.
15	(16) All fences provided by the owner or agent on the premises, and/or all fences erected
16	or caused to be erected by an occupant, shall be constructed of manufactured metal fencing
17	material, wood, masonry, or other inert material. These fences must be maintained in good
18	condition. Wood materials shall be protected against decay by use of paint or other preservative.
19	The permissible height and other characteristics of all fences must conform to the appropriate
20	statutes, ordinances, and regulations of this state, and the corporate unit. Wherever any egress
21	from the dwelling opens into the fenced area, there must be a means of egress from the premises
22	to any public way adjacent to it.
23	(17) Accessory structures present or provided by the owner, agency, or tenant occupant
24	on the premises must be structurally sound, and maintained in good repair and free from insects
25	and rodents, or the structure shall be removed from the premises. The exterior of the structures
26	shall be made weather resistant through the use of decay-resistant materials or the use of paint or
27	other preservatives.
28	(18) Every plumbing fixture and all water and waste pipes must be properly installed and
29	maintained in good working condition.
30	(19) No owner, operator, or occupant shall cause any service, facility, equipment, or
31	utility, required under this chapter, to be removed from, or shut off from, or discontinued for any
32	occupied dwelling or dwelling unit let or occupied by him or her, except for a temporary
33	interruption that may be necessary while actual repairs or alterations are in process, or during
34	temporary emergencies when discontinuance of service is approved by the appropriate authority.
	LC000840 - Page 305 of 319
1	(20) All construction and materials, ways and means of egress, and all installation and
2	use of equipment must conform to applicable state and local laws dealing with fire protection.
3	SECTION 10. This article shall take effect upon passage.
4	ARTICLE 23
5	RELATING TO BEHAVIORAL HEALTHCARE, DEVELOPMENTAL DISABILITIES AND
6	HOSPITALS
7	SECTION 1. Individuals with Intellectual and Developmental Disabilities Direct Service
8	Professionals Workforce Crisis.
9	WHEREAS, An estimated 4,400 adults with intellectual and developmental disabilities
10	are supported by the state in community-based settings; direct service professionals (DSPs) and
11	job coaches, are trained staff that are engaged in activities of daily living and
12	community/employment support; these employees earn wages that place them and their families
13	below the poverty level; and
14	WHEREAS, the average DSP wage in Rhode Island is approximately $11 per hour,
15	which is below the U.S. Department of Health and Human Services poverty threshold for a
16	family of 4; this workforce is often compelled to work many overtime hours or maintain a second
17	job to support their families; many have to rely on public benefits such as Medicaid and food
18	stamps, creating additional expenditures for state government; and
19	WHEREAS, RI has increased the minimum wage for the general workforce from $7.40
20	in 2012 to $9.60 in 2016, for a 30% increase in five years. During the corresponding period,
21	direct support professionals (DSP) and personal care attendants (PCA) have seen their combined
22	average wages move from $10.65 to $10.82, or increase by 1.6% over 5 years. Our neighboring
23	states of Massachusetts and Connecticut saw increases in the minimum wage of 20% (to $10 in
24	2016) and 16% (to $9.60 in 2016) respectively. Over the same 5-year period, these 2 states
25	increased their DSP/PCA wage by 7% (to $13.02) and 8% (to $12.19) respectively, compared
26	with RI’s $10.82 per hour wage. And, Massachusetts has committed to compensate their DPSs
27	with a $15.00/hour wage by 2018, and
28	WHEREAS, The lack of adequate wages for DSP employees who perform the
29	challenging work of supporting persons with intellectual and developmental disabilities results in
30	high employee turnover, estimated at 33% in RI; higher wages are proven to reduce staff
31	turnover, improving stability and quality of services while reducing employer training costs; and
32	WHEREAS, Rising wages in several other sectors now mean, despite strenuous efforts to
33	recruit new DSP workers and job coaches, agencies are experiencing staff vacancy rates of up to
34	25%; excessive vacancies force employers to rely more on overtime, leading to staff burnout and
	LC000840 - Page 306 of 319
1	driving up costs; this growing hiring crisis impedes the ability of community agencies to
2	implement the state’s obligations under the 2014 US Department of Justice Disabilities Act RI
3	Settlement Agreement, now, therefore, be it
4	RESOLVED, The Department of Behavioral Healthcare, Development Disabilities and
5	Hospitals shall institute a one-time increase in the base-payment rates for licensed developmental
6	disability organizations, in amount to be determined by the appropriations process, for the
7	purpose of raising wages for direct support professionals and job coaches that is implemented: (i)
8	by October 1, 2017, and (ii) in a manner that meets specifications related to implementation and
9	reporting approved by the director of the department of behavioral healthcare, developmental
10	disabilities and hospitals and secretary of health and human services, and be it further
11	RESOLVED, The Office of Internal Audit within the Office of Management and Budget
12	shall conduct a vender compliance audit review after the implementation of the increase in base-
13	rate payments in accordance with this resolution.
14	SECTION 2. This article shall take effect upon passage.
15	ARTICLE 24
16	RELATING TO EFFECTIVE DATE
17	SECTION 1. This act shall take effect as of July 1, 2017, except as otherwise provided
18	herein.
19	SECTION 2. This article shall take effect upon passage.
	LC000840 - Page 307 of 319
1
2	ARTICLE 1
3	RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2018
4	This article makes appropriations from general revenue and authorizes expenditure of
5	federal funds, restricted receipts, and other funds for FY 2018. This article also identifies the
6	FTE position authorizations for each agency and department for fiscal year 2018; provides multi-
7	year appropriations for Rhode Island Capital Plan Fund projects; provides for the reappropriation
8	of unexpended and unencumbered funds from the Rhode Island Capital Plan Fund project
9	appropriations in the ensuing fiscal year; provides expenditure limits for internal service funds;
10	provides appropriations for all Temporary Disability Insurance funds, Employment Security
11	funds, University and College funds, and Lottery Division funds.
12	ARTICLE 2
13	RELATING TO ECONOMIC DEVELOPMENT AND TAX CREDITS
14	This article establishes a redeemable Investment Tax Credit Program and Redeemable
15	Jobs Training Tax Credit Program. The programs would be administered by the Commerce
16	Corporation and allow (1) approved applicants within the manufacturing industry to redeem
17	investment tax credits for which the applicants qualify under a new Refundable Investment Tax
18	Credit, to the extent that such credits exceed the approved applicant’s tax liability; and (2)
19	approved applicants within the manufacturing industry and businesses within targeted industries
20	to redeem jobs training tax credits for which the applicants qualify under the new Refundable
21	Jobs Training Tax Credit, to the extent that such credits exceed the approved applicant’s tax
22	liability.
23	ARTICLE 3
24	RELATING TO RHODE ISLAND PROMISE SCHOLARSHIP
25	This article establishes the statutory authority for the Rhode Island Promise Scholarship.
26	The Rhode Island Promise Scholarship is a state-funded, “last-dollar” scholarship designed to
27	fully subsidize tuition and mandatory fees for two years at any of Rhode Island’s three
28	institutions of postsecondary education
29	ARTICLE 4
30	RELATING TO DIVISION OF MOTOR VEHICLES
31	This article authorizes the technology surcharge fee of $1.50 charged by the Division of
32	Motor Vehicles. In addition it delays the requirement that the Division of Motor Vehicles issue a
33	new fully reflective license plate from April 1, 2017 to April 1, 2018 and includes an allocation of
34	available funds from the Rhode Island highway maintenance account to the Division of Motor
	LC000840 - Page 308 of 319
1	Vehicles for operating expenses.
2	ARTICLE 5
3	RELATING TO GOVERNMENT REORGANIZATION
4	This article establishes a Commissioner of Public Safety and removes the Superintendent
5	of the State Police as the Director of the Department of Public Safety. It merges the Emergency
6	Management Agency with the Department of Public Safety and transfers oversight of several acts
7	from the Department of Health to the Office of the Health Insurance Commissioner. Changes to
8	unclassified service positions are also included.
9	ARTICLE 6
10	RELATING TO GOVERNMENTAL REFORM
11	This article changes the process of setting department directors’ salaries to allows
12	the Governor to set department directors’ salaries; allows the Governor to delegate his/her
13	authority to change the pay plan for unclassified employees to the Director of Administration;
14	allows promotional employees who are dismissed during their probationary period to be restored
15	to their original position within the class, and makes such restoration optional at the discretion of
16	the appointing authority; and allows tax information to be disclosed to the Department of
17	Administration, Office of Internal Audit for the purposes of fraud detection and prevention in any
18	state or federal program.
19	ARTICLE 7
20	RELATING TO STATE FUNDS
21	This article adds State Park Merchandising, OER Reconciliation Funding, OPEB System
22	Restricted Receipt Account, and DMV Registry Technology restricted receipt accounts to the list
23	of indirect cost recovery restricted receipt accounts to be exempt from transferring 10% of cash
24	receipts to the general fund. Additionally, this article would transfer any surplus funding from the
25	medical marijuana restricted receipt accounts at the end of each fiscal year to the general fund.
26	Lastly, this article establishes the Government Performance Improvement Fund, dedicated to the
27	purpose of funding “pay for success contracts” throughout state government.
28	ARTICLE 8
29	RELATING TO TAX AND REVENUES
30	This article allows for the Rhode Island Public Transit Authority to directly receive State
31	Motor Fuel Tax revenues in support of elderly and disable transportation services, rather than as a
32	pass-through from the Department of Human Services. The article also raises the cigarette tax by
33	50.0-cents, from $3.75 to $4.25 per pack. Lastly, the article addresses various issues with regards
34	to tax evasion and enforcement.
	LC000840 - Page 309 of 319
1	ARTICLE 9
2	RELATING TO REMOTE SELLERS SALES TAX COLLECTION
3	This article adds a new statutory scheme to capture the sales tax on goods or services to
4	Rhode Islander from remote sellers located outside the state.
5	ARTICLE 10
6	RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2017
7	This article makes revised appropriations from general revenue and authorizes
8	expenditure of federal funds, restricted receipts, and other funds for FY 2017. This article also
9	provides that each line in Section 10 constitutes an appropriation; provides expenditures limits for
10	internal service funds; identifies revised FTE position authorizations for each agency and
11	department for fiscal year 2017; and provides for an effective date of “upon passage”.
12	ARTICLE 11
13	RELATING TO THE MOTOR VEHICLE EXCISE TAX
14	This article reduces the maximum presumptive vehicle values determined by the state
15	Vehicle Value Commission from 100% to 70% of clean National Automobile Dealers
16	Association retail value. It also prevents municipalities from reducing their dollar-value
17	exemption from the motor vehicle excise tax relative to FY 2018 levels.
18	ARTICLE 12
19	RELATING TO MEDICAID REFORM ACT OF 2008
20	This article establishes the legal authority for the Secretary of the Executive Office of
21	Health and Human Services to review and coordinate any Medicaid section 1115 demonstration
22	waiver requests and renewals as well as any initiatives and proposals requiring amendments to the
23	Medicaid state plan or category II or III changes as described in the demonstration.
24	ARTICLE 13
25	RELATING TO MEDICAL ASSISTANCE AND UNCOMPENSATED CARE
26	This article implements several changes to the organization, financing and delivery of the
27	Medicaid program that build on the foundation of the Reinventing Medicaid Act including
28	leveraging funds from all available sources to ensure access to coordinated health care services
29	and promotion of better health outcomes through performance-based payment incentives and
30	reforms.
31	ARTICLE 14
32	RELATING TO LICENSING OF HOSPITAL FACILITIES
33	This article authorizes the State to continue its collection of the Hospital Licensing Fee
34	for one additional fiscal year.
	LC000840 - Page 310 of 319
1	ARTICLE 15
2	RELATING TO BEHAVIORIAL HEALTHCARE, DEVELOPMENTAL DISABILITIES AND
3	HOSPITALS – MAINTENANCE OF EFFORT
4	This article establishes the Department of Behavioral Healthcare, Developmental
5	Disabilities and Hospitals the co-designated agency in conjunction with the Executive Office of
6	Health and Human Services for administering federal aid for the purpose of the calculation of
7	expenditures relative to the Substance Abuse Block Grant and federal funding maintenance of effort
8	requirements.
9	ARTICLE 16
10	RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTION
11	This article serves as a joint resolution for the issuance of debt including Certificates of
12	Participation (COPS) and Rhode Island Health and Educational Building (RIHEBC) revenue
13	bonds. A total of $50,300,000 in COPS would be issued as follows: $11,600,000 for URI Energy
14	Conservation/Performance Contract Phase III to include the implementation of energy efficiency
15	improvements to buildings and infrastructure; $12,000,000 for the Office of Energy Resources
16	Energy Efficiency Project to implement cost-effective energy efficiency measures and renewable
17	energy installations at state-owned facilities and other clean energy investments; $10,500,000
18	million for Confined Aquatic Dredged Material Disposal Cells project within the Coastal
19	Resources Management Council to provide the state match on a federally funded disposal cell for
20	non-biodegradable sediment produced from dredging activities; and $16,200,000 for Information
21	Technology Projects to include phase two of a new Integrated Tax System, a new payroll system,
22	a new vital statistics program for the Department of Health, and updated electronic records and
23	case management systems for the Departments of Behavioral Health, Developmental Disabilities
24	and Hospitals, Corrections, and Human Services. Rhode Island Health and Educational Building
25	revenue bonds in the amount of $88,800,000 will be for the University of Rhode Island to
26	construct the White Horn Brook Apartments. The project will provide for a new residence hall on
27	the University’s Kingston campus and will support increased student enrollment and demand for
28	on-campus housing.
29	ARTICLE 17
30	RELATING TO LEASED OFFICE SPACE
31	This article authorizes a lease agreement to rent parking space for the Rhode
32	Island Nursing Education Center project pursuant to Rhode Island General Laws § 37-6-2.
33	ARTICLE 18
34	RELATING TO EDUCATION AID
	LC000840 - Page 311 of 319
1	This article amends current statute, making the Additional State Support for
2	English Learners (EL categorical) permanent. Without amending this article, the additional aid to
3	English Learners will be removed at the conclusion of FY 2017.
4	ARTICLE 19
5	RELATING TO ELECTRIC VEHICLE REBATE PROGRAM
6	This article establishes an Electric Vehicle Rebate Program that would be administered by
7	the Office of Energy Resources for individuals that purchase electric vehicles.
8	ARTICLE 20
9	RELATING TO MINIMUM WAGES
10	This article amends section 28-12-3 of the General Laws entitled “Minimum Wages” to
11	increase the minimum wage to $10.50 per hour, effective October 1, 2017.
12	ARTICLE 21
13	RELATING TO DEPARTMENT OF LABOR AND TRAINING FEES AND FINES
14	This article would eliminate the fees associated with registered apprenticeship in Rhode
15	Island. Exemptions include sponsors in the licensed trades that hold a contractor/master license and
16	apprentices involved in career and technical educational programs as approved by the USDOL.
17	Additionally, this article would increase the penalties assessed upon employers for failure to submit
18	timely Employer Tax Reports and wage record reports as required by law.
19	ARTICLE 22
20	RELATING TO LEAD POISONING PREVENTION PROGRAMS
21	This article establishes the Department of Health as the single state authority for lead
22	poisoning prevention and lead hazard mitigation. It gives the Department of Health responsibility for
23	all aspects of the lead poisoning prevention program, including the issuance of certificates of
24	conformance required for rental properties built before 1978.
25	ARTICLE 23
26	RELATING TO BEHAVIORIAL HEALTHCARE, DEVELOPMENTAL DISABILITIES AND
27	HOSPITALS – WAGES
28	This article implements changes to the Developmental Disabilities’ wage structure. The lack
29	of adequate wages for developmental disability employees who perform the challenging work of
30	supporting persons with intellectual and developmental disabilities results in high employee turnover,
31	which in turn negatively impacts the quality of services provided.
32	ARTICLE 24
33	RELATING TO EFFECTIVE DATE
34	This article provides that the act shall take effect as of July 1, 2017, except as otherwise
	LC000840 - Page 312 of 319
1	provided herein.
	========
	LC000840
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	LC000840 - Page 313 of 319
	EXPLANATION
	BY THE LEGISLATIVE COUNCIL
	OF
	A N A C T
	RELATING TO MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR
	THE FISCAL YEAR ENDING JUNE 30, 2018
	***
1	ARTICLE 1
2	RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2018
3	This article makes appropriations from general revenue and authorizes expenditure of
4	federal funds, restricted receipts, and other funds for FY 2018. This article also identifies the
5	FTE position authorizations for each agency and department for fiscal year 2018; provides multi-
6	year appropriations for Rhode Island Capital Plan Fund projects; provides for the reappropriation
7	of unexpended and unencumbered funds from the Rhode Island Capital Plan Fund project
8	appropriations in the ensuing fiscal year; provides expenditure limits for internal service funds;
9	provides appropriations for all Temporary Disability Insurance funds, Employment Security
10	funds, University and College funds, and Lottery Division funds.
11	ARTICLE 2
12	RELATING TO ECONOMIC DEVELOPMENT AND TAX CREDITS
13	This article establishes a redeemable Investment Tax Credit Program and Redeemable
14	Jobs Training Tax Credit Program. The programs would be administered by the Commerce
15	Corporation and allow (1) approved applicants within the manufacturing industry to redeem
16	investment tax credits for which the applicants qualify under a new Refundable Investment Tax
17	Credit, to the extent that such credits exceed the approved applicant’s tax liability; and (2)
18	approved applicants within the manufacturing industry and businesses within targeted industries
19	to redeem jobs training tax credits for which the applicants qualify under the new Refundable
20	Jobs Training Tax Credit, to the extent that such credits exceed the approved applicant’s tax
21	liability.
22	ARTICLE 3
23	RELATING TO RHODE ISLAND PROMISE SCHOLARSHIP
24	This article establishes the statutory authority for the Rhode Island Promise Scholarship.
25	The Rhode Island Promise Scholarship is a state-funded, “last-dollar” scholarship designed to
26	fully subsidize tuition and mandatory fees for two years at any of Rhode Island’s three
	LC000840 - Page 314 of 319
1	institutions of postsecondary education
2	ARTICLE 4
3	RELATING TO DIVISION OF MOTOR VEHICLES
4	This article authorizes the technology surcharge fee of $1.50 charged by the Division of
5	Motor Vehicles. In addition it delays the requirement that the Division of Motor Vehicles issue a
6	new fully reflective license plate from April 1, 2017 to April 1, 2018 and includes an allocation of
7	available funds from the Rhode Island highway maintenance account to the Division of Motor
8	Vehicles for operating expenses.
9	ARTICLE 5
10	RELATING TO GOVERNMENT REORGANIZATION
11	This article establishes a Commissioner of Public Safety and removes the Superintendent
12	of the State Police as the Director of the Department of Public Safety. It merges the Emergency
13	Management Agency with the Department of Public Safety and transfers oversight of several acts
14	from the Department of Health to the Office of the Health Insurance Commissioner. Changes to
15	unclassified service positions are also included.
16	ARTICLE 6
17	RELATING TO GOVERNMENTAL REFORM
18	This article changes the process of setting department directors’ salaries to allows the
19	Governor to set department directors’ salaries; allows the Governor to delegate his/her authority
20	to change the pay plan for unclassified employees to the Director of Administration; allows
21	promotional employees who are dismissed during their probationary period to be restored to their
22	original position within the class, and makes such restoration optional at the discretion of the
23	appointing authority; and allows tax information to be disclosed to the Department of
24	Administration, Office of Internal Audit for the purposes of fraud detection and prevention in any
25	state or federal program.
26	ARTICLE 7
27	RELATING TO STATE FUNDS
28	This article adds State Park Merchandising, OER Reconciliation Funding, OPEB System
29	Restricted Receipt Account, and DMV Registry Technology restricted receipt accounts to the list
30	of indirect cost recovery restricted receipt accounts to be exempt from transferring 10% of cash
31	receipts to the general fund. Additionally, this article would transfer any surplus funding from the
32	medical marijuana restricted receipt accounts at the end of each fiscal year to the general fund.
33	Lastly, this article establishes the Government Performance Improvement Fund, dedicated to the
34	purpose of funding “pay for success contracts” throughout state government.
	LC000840 - Page 315 of 319
1	ARTICLE 8
2	RELATING TO TAX AND REVENUES
3	This article allows for the Rhode Island Public Transit Authority to directly receive State
4	Motor Fuel Tax revenues in support of elderly and disable transportation services, rather than as a
5	pass-through from the Department of Human Services. The article also raises the cigarette tax by
6	50.0-cents, from $3.75 to $4.25 per pack. Lastly, the article addresses various issues with regards
7	to tax evasion and enforcement.
8	ARTICLE 9
9	RELATING TO REMOTE SELLERS SALES TAX COLLECTION
10	This article adds a new statutory scheme to capture the sales tax on goods or services to
11	Rhode Islander from remote sellers located outside the state.
12	ARTICLE 10
13	RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2017
14	This article makes revised appropriations from general revenue and authorizes
15	expenditure of federal funds, restricted receipts, and other funds for FY 2017. This article also
16	provides that each line in Section 10 constitutes an appropriation; provides expenditures limits for
17	internal service funds; identifies revised FTE position authorizations for each agency and
18	department for fiscal year 2017; and provides for an effective date of “upon passage”.
19	ARTICLE 11
20	RELATING TO THE MOTOR VEHICLE EXCISE TAX
21	This article reduces the maximum presumptive vehicle values determined by the state
22	Vehicle Value Commission from 100% to 70% of clean National Automobile Dealers
23	Association retail value. It also prevents municipalities from reducing their dollar-value
24	exemption from the motor vehicle excise tax relative to FY 2018 levels.
25	ARTICLE 12
26	RELATING TO MEDICAID REFORM ACT OF 2008
27	This article establishes the legal authority for the Secretary of the Executive Office of
28	Health and Human Services to review and coordinate any Medicaid section 1115 demonstration
29	waiver requests and renewals as well as any initiatives and proposals requiring amendments to the
30	Medicaid state plan or category II or III changes as described in the demonstration.
31	ARTICLE 13
32	RELATING TO MEDICAL ASSISTANCE AND UNCOMPENSATED CARE
33	This article implements several changes to the organization, financing and delivery of the
34	Medicaid program that build on the foundation of the Reinventing Medicaid Act including
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1	leveraging funds from all available sources to ensure access to coordinated health care services
2	and promotion of better health outcomes through performance-based payment incentives and
3	reforms.
4	ARTICLE 14
5	RELATING TO LICENSING OF HOSPITAL FACILITIES
6	This article authorizes the State to continue its collection of the Hospital Licensing Fee
7	for one additional fiscal year.
8	ARTICLE 15
9	RELATING TO BEHAVIORIAL HEALTHCARE, DEVELOPMENTAL DISABILITIES AND
10	HOSPITALS – MAINTENANCE OF EFFORT
11	This article establishes the Department of Behavioral Healthcare, Developmental
12	Disabilities and Hospitals the co-designated agency in conjunction with the Executive Office of
13	Health and Human Services for administering federal aid for the purpose of the calculation of
14	expenditures relative to the Substance Abuse Block Grant and federal funding maintenance of effort
15	requirements.
16	ARTICLE 16
17	RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTION
18	This article serves as a joint resolution for the issuance of debt including Certificates of
19	Participation (COPS) and Rhode Island Health and Educational Building (RIHEBC) revenue
20	bonds. A total of $50,300,000 in COPS would be issued as follows: $11,600,000 for URI Energy
21	Conservation/Performance Contract Phase III to include the implementation of energy efficiency
22	improvements to buildings and infrastructure; $12,000,000 for the Office of Energy Resources
23	Energy Efficiency Project to implement cost-effective energy efficiency measures and renewable
24	energy installations at state-owned facilities and other clean energy investments; $10,500,000
25	million for Confined Aquatic Dredged Material Disposal Cells project within the Coastal
26	Resources Management Council to provide the state match on a federally funded disposal cell for
27	non-biodegradable sediment produced from dredging activities; and $16,200,000 for Information
28	Technology Projects to include phase two of a new Integrated Tax System, a new payroll system,
29	a new vital statistics program for the Department of Health, and updated electronic records and
30	case management systems for the Departments of Behavioral Health, Developmental Disabilities
31	and Hospitals, Corrections, and Human Services. Rhode Island Health and Educational Building
32	revenue bonds in the amount of $88,800,000 will be for the University of Rhode Island to
33	construct the White Horn Brook Apartments. The project will provide for a new residence hall on
34	the University’s Kingston campus and will support increased student enrollment and demand for
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1	on-campus housing.
2	ARTICLE 17
3	RELATING TO LEASED OFFICE SPACE
4	This article authorizes a lease agreement to rent parking space for the Rhode Island
5	Nursing Education Center project pursuant to Rhode Island General Laws § 37-6-2.
6	ARTICLE 18
7	RELATING TO EDUCATION AID
8	This article amends current statute, making the Additional State Support for English
9	Learners (EL categorical) permanent. Without amending this article, the additional aid to English
10	Learners will be removed at the conclusion of FY 2017.
11	ARTICLE 19
12	RELATING TO ELECTRIC VEHICLE REBATE PROGRAM
13	This article establishes an Electric Vehicle Rebate Program that would be administered by
14	the Office of Energy Resources for individuals that purchase electric vehicles.
15	ARTICLE 20
16	RELATING TO MINIMUM WAGES
17	This article amends section 28-12-3 of the General Laws entitled “Minimum Wages” to
18	increase the minimum wage to $10.50 per hour, effective October 1, 2017.
19	ARTICLE 21
20	RELATING TO DEPARTMENT OF LABOR AND TRAINING FEES AND FINES
21	This article would eliminate the fees associated with registered apprenticeship in Rhode
22	Island. Exemptions include sponsors in the licensed trades that hold a contractor/master license and
23	apprentices involved in career and technical educational programs as approved by the USDOL.
24	Additionally, this article would increase the penalties assessed upon employers for failure to submit
25	timely Employer Tax Reports and wage record reports as required by law.
26	ARTICLE 22
27	RELATING TO LEAD POISONING PREVENTION PROGRAMS
28	This article establishes the Department of Health as the single state authority for lead
29	poisoning prevention and lead hazard mitigation. It gives the Department of Health responsibility for
30	all aspects of the lead poisoning prevention program, including the issuance of certificates of
31	conformance required for rental properties built before 1978.
32	ARTICLE 23
33	RELATING TO BEHAVIORIAL HEALTHCARE, DEVELOPMENTAL DISABILITIES AND
34	HOSPITALS – WAGES
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1	This article implements changes to the Developmental Disabilities’ wage structure. The lack
2	of adequate wages for developmental disability employees who perform the challenging work of
3	supporting persons with intellectual and developmental disabilities results in high employee turnover,
4	which in turn negatively impacts the quality of services provided.
5	ARTICLE 24
6	RELATING TO EFFECTIVE DATE
7	This article provides that the act shall take effect as of July 1, 2017, except as otherwise
8	provided herein.
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