=======

art.003/4/003/3/003/2/003/1

=======

     ARTICLE 3

RELATING TO GOVERNMENT REFORM

     SECTION 1. Sections 5-65-5, 5-65-7 and 5-65-9 of the General Laws in Chapter 5-65

entitled "Contractors' Registration and Licensing Board" are hereby amended as follows:

     5-65-5. Registered application.

     (a) A person who wishes to register as a contractor shall submit an application, under oath,

upon a form prescribed by the board. The application shall include:

     (1) Workers' compensation insurance account number, or company name if a number has

not yet been obtained, if applicable;

     (2) Unemployment insurance account number if applicable;

     (3) State withholding tax account number if applicable;

     (4) Federal employer identification number, if applicable, or if self-employed and

participating in a retirement plan;

     (5) The individual(s) name and business address and residential address of:

     (i) Each partner or venturer, if the applicant is a partnership or joint venture;

     (ii) The owner, if the applicant is an individual proprietorship;

     (iii) The corporation officers and a copy of corporate papers filed with the Rhode Island

secretary of state's office, if the applicant is a corporation;

     (iv) Post office boxes are not acceptable as the only address.

     (6) A signed affidavit subject to the penalties of perjury of a statement as to whether or not

the applicant has previously applied for registration, or is or was an officer, partner, or venturer of

an applicant who previously applied for registration and if so, the name of the corporation,

partnership, or venture.

     (7) Valid insurance certificate for the type of work being performed.

     (b) A person may be prohibited from registering or renewing registration as a contractor

under the provisions of this chapter or his or her registration may be revoked or suspended if he or

she has any unsatisfied or outstanding judgments from arbitration, bankruptcy, courts and/or

administrative agency against him or her relating to their work as a contractor, and provided,

further, that an affidavit subject to the penalties of perjury a statement shall be provided to the board

attesting to the information herein.

     (c) Failure to provide or falsified information on an application, or any document required

by this chapter is punishable by a fine not to exceed ten thousand dollars ($10,000) and/or

revocation of the registration.

     (d) Applicant must be at least eighteen (18) years of age.

     (e) Satisfactory proof shall be provided to the board evidencing the completion of five (5)

hours of continuing education units which will be required to be maintained by residential

contractors as a condition of registration as determined by the board pursuant to established

regulations.

     (f) An affidavit A certification in a form issued by the board shall be completed upon

registration or license or renewal to assure contractors are aware of certain provisions of this law

and shall be signed by the registrant before a registration can be issued or renewed.

     5-65-7. Insurance required of contractors.

     (a) Throughout the period of registration, the contractor shall have in effect public liability

and property damage insurance covering the work of that contractor which shall be subject to this

chapter in not less than the following amount: five hundred thousand dollars ($500,000) combined

single limit, bodily injury and property damage.

     (b) In addition, all contractors shall have in effect worker's compensation insurance as

required under chapter 29 of title 28. Failure to maintain required insurance shall not preclude

claims from being filed against a contractor.

     (c) The contractor shall provide satisfactory evidence to the board at the time of registration

and renewal that the insurance required by subsection (a) of this section has been procured and is

in effect. Failure to maintain insurance shall invalidate registration and may result in a fine to the

registrant and/or suspension or revocation of the registration.

     5-65-9. Registration fee.

     (a) Each applicant shall pay to the board:

     (1) For original registration or renewal of registration, a fee of two hundred dollars ($200).

     (2) A fee for all changes in the registration, as prescribed by the board, other than those

due to clerical errors.

     (b) All fees and fines collected by the board shall be deposited as general revenues to

support the activities set forth in this chapter until June 30, 2008. Beginning July 1, 2008, all fees

and fines collected by the board shall be deposited into a restricted receipt account for the exclusive

use of supporting programs established by this chapter.

     (c) On or before January 15, 2018, and annually thereafter, the board shall file a report with

the speaker of the house and the president of the senate, with copies to the chairpersons of the house

and senate finance committees, detailing:

     (1) The total number of fines issued, broken down by category, including the number of

fines issued for a first violation and the number of fines issued for a subsequent violation;

     (2) The total dollar amount of fines levied;

     (3) The total amount of fees, fines, and penalties collected and deposited for the most

recently completed fiscal year; and

     (4) The account balance as of the date of the report.

     (d) Each year, the executive director department of business regulation shall prepare a

proposed budget to support the programs approved by the board. The proposed budget shall be

submitted to the board for its review. A final budget request shall be submitted to the legislature as

part of the capital projects and property management annual request department of business

regulation's annual request.

     (e) New or renewal registrations may be filed online or with a third-party approved by the

board, with the additional cost incurred to be borne by the registrant.

     SECTION 2. Sections 5-84-1, 5-84-2, 5-84-3, 5-84-5, 5-84-6 and 5-84-7 of the General

Laws in Chapter 5-84 entitled “Division of Design Professionals” are hereby amended as follows:

     The title of Chapter 5-84 of the General Laws entitled “Division of Design Professionals”

is hereby changed to “Division of Building, Design and Fire Professionals.”

     5-84-1. Short title.

     This chapter shall be known and may be cited as "The Division of Design Building, Design

and Fire Professionals Act."

     5-84-2. Division of design building, design and fire professionals Division of building,

design and fire professionals.

     There has been created within the department of business regulation, a division known as

the division of design building, design and fire professionals.

     5-84-3. Division membership.

     The division consists of the membership of the office of the state fire marshal, the fire

safety code board of review and appeal, the office of the state building commissioner, the board of

registration for professional engineers, board of registration for professional land surveyors, board

of examination and registration of architects, and the board of examiners of landscape architects

and the contractors’ registration and licensing board.

     5-84-5. Imposition of fines for unregistered activity.

     (a) In addition to any other provision of law, if a person or business practices or offers to

practice architecture, engineering, land surveying, or landscape architecture in the state without

being registered or authorized to practice as required by law, the boards within the division may

recommend that the director of the department of business regulations or the director’s designee

issue an order imposing a fine; provided, however, that this section shall not apply to issues between

the boards referred to in subsection (a) of this section as to the scope of a board registrant's authority

to engage in work relating to another board's jurisdiction or to issues relating to ISDS designers

licensed by the department of environmental management.

     (b) A fine ordered under this section may not exceed two thousand five hundred dollars

($2,500) for each offense. In recommending a fine, the board shall set the amount of the penalty

imposed under this section after taking into account factors, including the seriousness of the

violation, the economic benefit resulting from the violation, the history of violations, and other

matters the board considers appropriate.

     (c) Before recommending that a fine be order under this section, the board shall provide

the person or business written notice and the opportunity to request, with thirty (30) days of

issuance of notice by the board, a hearing on the record.

     (d) A person or business aggrieved by the ordering of a fine under this section may file an

appeal with the superior court for judicial review of the ordering of a fine.

     (e) If a person of business fails to pay the fine within thirty (30) days after entry of an order

under (a) of this section, or if the order is stayed pending an appeal, within ten (10) days after the

court enters a final judgment in favor of the department of an order appealed under (d) of this

section, the director may commence a civil action to recover the amount of the fine.

     5-84-6. Cease and Desist Authority.

     If the director has reason to believe that any person, firm, corporation, or association is

conducting any activity under the jurisdiction of the division of design building, design and fire

professionals including professional engineering, professional land surveying, architecture, and/or

landscape architecture without obtaining a license or registration, or who after the denial,

suspension, or revocation of a license or registration is conducting that business, the director or the

director’s designee may, either on his or her own initiative or upon recommendation of the

appropriate board, issue an order to that person, firm, corporation, or association commanding them

to appear before the department at a hearing to be held not sooner than ten (10) days nor later than

twenty (20) days after issuance of that order to show cause why the director or the director’s

designee should not issue an order to that person to cease and desist from the violation of the

provisions of this chapter and/or chapters 1, 8, 8.1, 51 and/or 51 65 of title 5. That order to show

cause may be served on any person, firm, corporation, or association named by any person in the

same manner that a summons in a civil action may be served, or by mailing a copy of the order,

certified mail, return receipt requested, to that person at any address at which that person has done

business or at which that person lives. If during that hearing the director or the director’s designee

is satisfied that the person is in fact violating any provision of this chapter, the director or the

director’s designee may order that person, in writing, to cease and desist from that violation and/or

impose an appropriate fine under § 5-84-5 or other applicable law and/or refer the matter to the

attorney general for appropriate action under chapters 1, 8, 8.1, 51 and/or 51 65 of title 5. All these

hearings are governed in accordance with the administrative procedures act. If that person fails to

comply with an order of the department after being afforded a hearing, the superior court for

Providence county has jurisdiction upon complaint of the department to restrain and enjoin that

person from violating chapters 1, 8, 8.1, 51, 65 and/or 84 of title 5.

     5-84-7. Electronic applications for certificates of authorization.

     All applications to the division of design building, design and fire professionals for

certificates of authorization shall be submitted electronically through the department's electronic-

licensing system, unless special permission to apply in paper format is requested by the applicant

and granted by the director or the director’s designee.

     SECTION 3. Sections 23-27.3-100.1.3, 23-27.3-107.3, 23-27.3-107.4 and 23-27.3-108.2

of the General Laws in Chapter 23-27.3 entitled “State Building Code” are hereby amended as

follows:

     23-27.3-100.1.3. Creation of the state building code standards committee. 

     (a) There is created as an agency of state government a state building code standards

committee who shall adopt, promulgate, and administer a state building code for the purpose of

regulating the design, construction, and use of buildings or structures previously erected, in

accordance with a rehabilitation building and fire code for existing buildings and structures

developed pursuant to chapter 29.1 of this title, and to make any amendments to them as they, from

time to time, deem necessary or desirable, the building code to include any code, rule, or regulation

incorporated in the code by reference.

     (b) A standing subcommittee is made part of the state building code standards committee

to promulgate and administer a state housing and property maintenance code for the purpose of

establishing minimum requirements and standards and to regulate the occupancy and use of existing

premises, structures, buildings, equipment, and facilities, and to make amendments to them as

deemed necessary.

     (c) A joint committee, with membership as set forth in § 23-29.1-2(a) from the state

building code standards committee, shall develop and recommend for adoption and promulgation,

a rehabilitation building and fire code for existing buildings and structures, which code shall include

building code elements to be administered by the state building code standards committee as the

authority having jurisdiction over the elements. 

     (d) The state building code standards committee shall be housed within the office of the

state building commissioner.

     23-27.3-107.3. Appointment of personnel by state building commissioner. 

     (a) The state building commissioner may appoint such other personnel as shall be necessary

for the administration of the code. In the absence of a local building official or an alternate, as

detailed in § 23-27.3-107.2, the commissioner shall assume the responsibility of the local building

official and inspectors as required by § 23-27.3-107.4 and shall designate one of the following

agents to enforce the code:

     (1) A member of the commissioner's staff who meets the qualifications of § 23-27.3-107.5

and is certified in accordance with § 23-27.3-107.6.

     (2) An architect or engineer contracted by the commissioner through the department of

administration business regulation.

     (3) A building official who is selected from a list of previously certified officials or

inspectors.

     (b) The salary and operating expenses for services provided in accordance with subsection

(a)(1), (2), or (3) shall be reimbursed to the state by the city or town receiving the services and shall

be deposited as general revenues. The attorney general shall be informed of any failure of the

appropriate local authority to appoint a local building official to enforce the code in accordance

with §§ 23-27.3-107.1 or 23-27.3-107.2. 

     23-27.3-107.4. Qualifications and duties of the state building commissioner. 

     (a) The state building commissioner shall serve as the executive secretary to the state

building code standards committee. In addition to the state building commissioner's other duties as

set forth in this chapter, the state building commissioner shall assume the authority for the purpose

of enforcing the provisions of the state building code in a municipality where there is no local

building official.

     (b) The state building commissioner shall be a member of the classified service, and for

administrative purposes shall be assigned a position in the department of administration business

regulation. Qualifications for the position of the state building commissioner shall be established

in accordance with provisions of the classified service of the state, and shall include the provision

that the qualifications include at least ten (10) years' experience in building or building regulations

generally, and that the commissioner be an architect or professional engineer licensed in the state

or a certified building official presently or previously employed by a municipality and having at

least ten (10) years' experience in the building construction or inspection field. 

     23-27.3-108.2. State building commissioner's duties. 

     (a) This code shall be enforced by the state building commissioner as to any structures or

buildings or parts thereof that are owned or are temporarily or permanently under the jurisdiction

of the state or any of its departments, commissions, agencies, or authorities established by an act

of the general assembly, and as to any structures or buildings or parts thereof that are built upon

any land owned by or under the jurisdiction of the state.

     (b) Permit fees for the projects shall be established by the committee. The fees shall be

deposited as general revenues.

     (c)(1) The local cities and towns shall charge each permit applicant an additional .1 (.001)

percent (levy) of the total construction cost for each permit issued. The levy shall be limited to a

maximum of fifty dollars ($50.00) for each of the permits issued for one and two (2) family

dwellings. This additional levy shall be transmitted monthly to the building commission at the

department of administration business regulation, and shall be used to staff and support the

purchase or lease and operation of a web-accessible service and/or system to be utilized by the state

and municipalities for uniform, statewide electronic plan review, permit management and

inspection system and other programs described in this chapter. The fee levy shall be deposited as

general revenues.

     (2) On or before July 1, 2013, the building commissioner shall develop a standard statewide

process for electronic plan review, permit management and inspection.

     (3) On or before December 1, 2013, the building commissioner, with the assistance of the

office of regulatory reform, shall implement the standard statewide process for electronic plan

review, permit management and inspection. In addition, the building commissioner shall develop

a technology and implementation plan for a standard web-accessible service and/or system to be

utilized by the state and municipalities for uniform, statewide electronic plan review, permit

management and inspection.

     (d) The building commissioner shall, upon request by any state contractor described in §

37-2-38.1, review, and when all conditions for certification have been met, certify to the state

controller that the payment conditions contained in § 37-2-38.1 have been met.

     (e) The building commissioner shall coordinate the development and implementation of

this section with the state fire marshal to assist with the implementation of § 23-28.2-6.

     (f) The building commissioner shall submit, in coordination with the state fire marshal, a

report to the governor and general assembly on or before April 1, 2013 and each April 1st thereafter,

providing the status of the web-accessible service and/or system implementation and any

recommendations for process or system improvement. 

     SECTION 4. Sections 23-28.2-1, 23-28.2-5, 23-28.2-7, 23-28.2-14, 23-28.2-22, 23-28.2-

23, 23-28.2-28 and 23-28.2-29 of Chapter 23-28.2 of the General Laws entitled “Division of Fire

Safety” are hereby amended as follows:

     23-28.2-1. Establishment of division and office of the state fire marshal Establishment

of office of the state fire marshal.

     There shall be a division an office of the state fire marshal within the department of public

safety business regulation's division of building, design and fire professionals, the head of which

division office shall be the state fire marshal. The state fire marshal shall be appointed by the

governor with the advice and consent of the senate and shall serve for a period of five (5) years.

During the term the state fire marshal may be removed from office by the governor for just cause.

All authority, powers, duties and responsibilities previously vested in the division of fire safety are

hereby transferred to the division office of the state fire marshal. 

     23-28.2-5. Bomb disposal unit.

     (a) Within the division office of the state fire marshal, there shall be a bomb disposal unit

(bomb squad), accredited by the FBI as a bomb squad, whose duties it will be to handle and dispose

of all hazardous devices suspect to be explosive or incendiary in construction which includes any

weapons of mass destruction (WMD) that may be explosive or chemical in construction.

     (b) The State Fire Marshal shall appoint a bomb technician to supervise the operations of

this unit and the technician must be certified by the FBI as a bomb technician. The bomb technician

must ensure that all bomb technicians are trained and maintain certification, the bomb squad

maintains accreditation, and ensures that all equipment belonging to the bomb squad is maintained

and in operating condition at all times. The bomb technician must also provide to cities and towns

and local businesses or any other organizations procedures in bomb threats, and procedures where

explosive devices or suspect devices are located.

     (c) The State Fire Marshal shall appoint from the local communities volunteer assistant

deputy state fire marshals, as bomb squad members only, to assist in carrying on the responsibilities

of this unit. The volunteers, who must be available for immediate response when called upon, be

available to participate in training sessions, shall be approved by their local fire or police chief, and

must have their chief sign an agreement (memorandum of understanding) which provides for their

release during emergencies and training and assumes liability for any injuries that may occur to

them. All bomb squad members shall operate only under the direction of the State Bomb Squad

Commander or senior ranking Deputy State Fire Marshal who is certified as a bomb technician.

The bomb squad may also request assistance from the local fire and police authorities when

handling any explosive or incendiary device, WMD or post incident investigations.

     23-28.2-7. Office of state fire marshal.

     The state fire marshal shall be provided adequate offices by the director of administration.

through the department of business regulation.

     23-28.2-14. Enforcement.

     (a) Within the division office of the state fire marshal, there shall be an enforcement unit

responsible for the initiation of criminal prosecution of or civil proceedings against any person(s)

in violation of the state Fire Safety Code or failure to comply with an order to abate conditions that

constitute a violation of the Fire Safety Code, chapters 28.1 – 28.39 of this title, and any rules or

regulations added thereunder and/or the general public laws of the state as they relate to fires, fire

prevention, fire inspections, and fire investigations. This unit will consist of the state fire marshal,

chief deputy state fire marshal, chief of technical services, explosive technician, assistant explosive

technicians, and the arson investigative staff, each of whom must satisfactorily complete at the

Rhode Island state police training academy an appropriate course of training in law enforcement or

must have previously completed a comparable course. To fulfill their responsibilities, this unit shall

have and may exercise in any part of the state all powers of sheriffs, deputy sheriffs, town sergeants,

chiefs of police, police officers, and constables.

     (b) The State Fire Marshal shall have the power to implement a system of enforcement to

achieve compliance with the fire safety code, which shall include inspections as provided for in §

23-28.2-20, the issuance of formal notices of violation in accordance with § 23-28.2-20.1, and the

issuance of citations in a form approved by the State Fire Marshal and the Chief Judge of the District

Court. The State Fire Marshal, and his or her designee(s) as outlined in this chapter, may use the

above systems of enforcement individually or in any combination to enforce the State Fire Safety

Code.

     (c) The State Fire Marshal and all persons designated specifically in writing by the State

Fire Marshal shall have the power to issue the citations referenced in this chapter.

     (d) The following categories of violation of the Fire Safety Code that can be identified

through inspection shall be considered criminal violations of the Fire Safety Code and be subject

to the above issuance of citations:

     (1) Impediments to Egress:

     (A) Exit doors locked so as to prevent egress.

     (B) Blocked means of egress (other than locking and includes any portion of the exit access,

exit or exit discharge).

     (C) Marking of exits or the routes to exits has become obstructed and is not clearly visible.

     (D) Artificial lighting needed for orderly evacuation is not functioning properly (this

section does not include emergency lighting).

     (2) Maintenance:

     (A) Required devices, equipment, system, condition, arrangement, or other features not

continuously maintained.

     (B) Equipment requiring periodic testing or operation, to ensure its maintenance, is not

being tested or operated.

     (C) Owner of building where a fire alarm system is installed has not provided written

evidence that there is a testing and maintenance program in force providing for periodic testing of

the system.

     (D) Twenty-four hour emergency telephone number of building owner or owner's

representative is not posted at the fire alarm control unit or the posted number is not current.

     (3) Fire Department Access and Water Supply:

     (A) The required width or length of a previously approved fire department access road (fire

lane) is obstructed by parked vehicles or other impediments.

     (B) Fire department access to fire hydrants or other approved water supplies is blocked or

impeded.

     (4) Fire Protection Systems:

     (A) Obstructions are placed or kept near fire department inlet connections or fire protection

system control valves preventing them from being either visible or accessible.

     (B) The owner, designated agent or occupant of the property has not had required fire

extinguishers inspected, maintained or recharged.

     (5) Admissions supervised:

     (A) Persons responsible for supervising admissions to places of assembly, and/or any sub-

classifications thereof, have allowed admissions in excess of the maximum occupancy posted by

the State Fire Marshal or his or her designee.

     The terms used in the above categories of violation are defined in the definition sections of

NFPA 1 and NFPA 101 as adopted pursuant to § 23-28.1-2 of this title.

     (e) A building owner, responsible management, designated agent or occupant of the

property receiving a citation may elect to plead guilty to the violation(s) and pay the fine(s) through

the mail within ten (10) days of issuance, or appear in district court for an arraignment on the

citation.

     (f) Notwithstanding subsection (e) above, all recipients of third or subsequent citations,

within a sixty (60) month period, shall appear in district court for a hearing on the citation. If not

paid by mail he, she or it shall appear to be arraigned on the criminal complaint on the date indicated

on the citation. If the recipient(s) fails to appear, the district court shall issue a warrant of arrest.

     (g) The failure of a recipient to either pay the citation through the mail within ten (10) days,

where permitted under this section, or to appear in district court on the date specified shall be cause

for the district court to issue a warrant of arrest with the penalty assessed and an additional five

hundred dollar ($500) fine.

     (h) A building owner, responsible management, designated agent or occupant of the

property who receives the citation(s) referenced in this section shall be subject to civil fine(s), which

fine(s) shall be used for fire prevention purposes by the jurisdiction that issues the citation(s), as

follows:

     (1) A fine of two hundred fifty dollars ($250) for the first violation within any sixty (60)

month period;

     (2) A fine of five hundred dollars ($500) for the second violation within any sixty (60)

month period;

     (3) A fine of one thousand dollars ($1,000) for the third and any subsequent violation(s)

within any sixty (60) month period;

     (i) No citation(s) as defined in this section, shall be issued pursuant to a search conducted

under an administrative search warrant secured pursuant to § 23-28.2-20(c) of this code. Any

citation mistakenly issued in violation of this subsection (i) shall be void and unenforceable.

     (j) The District Court shall have full equity power to hear and address these matters.

     (k) All violations, listed within subsection (d) above, shall further be corrected within a

reasonable period of time established by the State Fire Marshal or his or her designee.

     23-28.2-22. Fire education and training unit.

     (a) There shall be a fire education and training unit within the division of fire safety office

of the state fire marshal headed by a director of fire training. The director of fire training shall be

appointed by the fire marshal from a list of names submitted by the fire education and training

coordinating board based on recommendations of a screening committee of that board. Other staff

and resources, such as part time instructors, shall be requested consistent with the state budget

process.

     (b) This unit shall be responsible for implementing fire education and training programs

developed by the fire education and training coordinating board.

     23-28.2-23. Fire education and training coordinating board.

     (a) There is hereby created within the division of fire safety office of the state fire marshal

a fire education and training coordinating board comprised of thirteen (13) members appointed by

the governor with the advice and consent of the senate. In making said appointments, the governor

shall give due consideration to including in the board's membership representatives of the following

groups:

     (1) Chiefs of fire departments with predominately fully paid personnel, defined as

departments in which the vast majority of members are full-time, salaried personnel.

     (2) Chiefs of fire departments with part paid/combination personnel, defined as

departments in which members consist of both full-time salaried personnel and a large percentage

of volunteer or call personnel.

     (3) Chiefs of fire departments with predominately volunteer personnel, defined as

departments in which the vast majority of members respond voluntarily and receive little or no

compensation.

     (4) Rhode Island firefighters' instructor's association.

     (5) Rhode Island department of environmental management.

     (6) Rhode Island fire safety association.

     (7) Rhode Island state firefighter's league.

     (8) Rhode Island association of firefighters.

     (9) Regional firefighters leagues.

     (b) The state fire marshal and the chief of training and education shall serve as ex-officio

members.

     (c) Members of the board as of March 29, 2006 shall continue to serve for the balance of

their current terms. Thereafter, members shall be appointed to three (3) year terms. No person shall

serve more than two (2) consecutive terms, except that service on the board for a term of less than

two (2) years resulting from an initial appointment or an appointment for the remainder of an

unexpired term shall not constitute a full term.

     (d) Members shall hold office until a successor is appointed, and no member shall serve

beyond the time he or she ceases to hold office or employment by reason of which he or she was

eligible for appointment.

     (e) All gubernatorial appointments made after March 29, 2006 shall be subject to the advice

and consent of the senate. No person shall be eligible for appointment to the board after March 29,

2006 unless he or she is a resident of this state.

     (f) Members shall serve without compensation, but shall receive travel expenses in the

same amount per mile approved for state employees.

     (g) The board shall meet at the call of the chairperson or upon written petition of a majority

of the members, but not less than six (6) times per year.

     (h) Staff support to the board will be provided by the state fire marshal.

     (i) The board shall:

     (1) Establish bylaws to govern operational procedures not addressed by legislation.

     (2) Elect a chairperson and vice-chairperson of the board in accordance with bylaws to be

established by the board.

     (3) Develop and offer training programs for fire fighters and fire officers based on

applicable NFPA standards used to produce training and education courses.

     (4) Develop and offer state certification programs for instructors based on NFPA standards.

     (5) Monitor and evaluate all programs to determine their effectiveness.

     (6) Establish a fee structure in an amount necessary to cover costs of implementing the

programs.

     (7) Within ninety (90) days after the end of each fiscal year, approve and submit an annual

report to the governor, the speaker of the house of representatives, the president of the senate, and

the secretary of state of its activities during that fiscal year. The report shall provide: an operating

statement summarizing meetings or hearing held, including meeting minutes, subjects addressed,

decisions rendered, rules or regulations promulgated, studies conducted, policies and plans

developed, approved or modified and programs administered or initiated; a consolidated financial

statement of all funds received and expended including the source of the funds, a listing of any staff

supported by these funds, and a summary of any clerical, administrative or technical support

received; a summary of performance during the previous fiscal year including accomplishments,

shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or other legal matters

related to the authority of the council; a summary of any training courses held pursuant to the

provisions of this section; a briefing on anticipated activities in the upcoming fiscal year and

findings and recommendations for improvements. The report shall be posted electronically on the

general assembly and secretary of state's websites as prescribed in § 42-20-8.2. The director of the

department of administration shall be responsible for the enforcement of the provisions of this

subsection.

     (8) Conduct a training course for newly appointed and qualified members within six (6)

months of their qualification or designation. The course shall be developed by the chair of the

board, approved by the board, and conducted by the chair of the board. The board may approve the

use of any board or staff members or other individuals to assist with training. The training course

shall include instruction in the following areas: the provisions of chapters 42-46, 36-14, and 38-2;

and the commission's rules and regulations. The state fire marshal shall, within ninety (90) days of

March 29, 2006, prepare and disseminate training materials relating to the provisions of chapters

42-46, 36-14, and 38-2.

     (j) In an effort to prevent potential conflicts of interest, any fire education and training

coordinating board member shall not simultaneously serve as a paid instructor and/or administrator

within the fire education and training unit.

     (k) A quorum for conducting all business before the board, shall be at least seven (7)

members.

     (l) Members of the board shall be removable by the governor pursuant to the provisions of

§ 36-1-7 of the general laws and for cause only, and removal solely for partisan or personal reasons

unrelated to capacity or fitness for the office shall be unlawful.

     23-28.2-28. Rhode Island state firefighter's league grant account. 

     (a) There is hereby created within the department of public safety business regulation a

restricted receipt account to be known as the Rhode Island state firefighter's league grant account.

Donations received from the Rhode Island state firefighter's league shall be deposited into this

account, and shall be used solely to fund education and training programs for firefighters in the

state.

     (b) All amounts deposited in the Rhode Island state firefighter's league grant account shall

be exempt from the indirect cost recovery provisions of § 35-4-27. 

     23-28.2-29. Fire academy training fees restricted receipt account. 

     There is hereby created with the department of public safety business regulation a restricted

receipt account to be known as the fire academy training fees account. All receipts collected

pursuant to § 23-28.2-23 shall be deposited in this account and shall be used to fund costs associated

with the fire training academy. All amounts deposited into the fire academy training restricted

receipt account shall be exempt from the indirect cost recovery provisions of § 35-4-27.

     SECTION 5. Section 23-34.1-3 of Chapter 23-34.1 of the General Laws entitled

“Amusement Ride Safety Act” is hereby amended as follows:

     23-34.1-3. Definitions.

     As used in this chapter:

     (1) "Altered ride" means a ride or device that has been altered with the approval of the

manufacturer.

     (2) "Amusement attraction" means any building or structure around, over, or through which

persons may move to walk, without the aid of any moving device integral to the building or

structure, which provides amusement, pleasure, thrills, or excitement. Excluded are air structures

("moonwalks"), arenas, stadiums, theatres, nonmechanical amusement structures commonly

located in or around day care centers, schools, commercial establishments, malls, fast food

restaurants, and convention halls. This does not include enterprises principally devoted to the

exhibition of products of agriculture, industry, education, science, religion, or the arts.

     (3) "Amusement ride" means any mechanical device which carries, suspends or conveys

passengers along, around, or over a fixed or restricted route or course or within a defined area, for

the purpose of giving its passengers amusement, pleasure, thrills, or excitement. For the purposes

of this act, any dry slide over twenty (20) feet in height is also included. This term shall not include

hayrides (whether pulled by motor vehicle or horse), any coin-operated ride that is manually,

mechanically or electrically operated and customarily placed in a public location and that does not

normally require the supervision or services of an operator or nonmechanical devices with

nonmoving parts, including, but not limited to, walk-through amusement attractions, slides, and air

structures ("moonwalks").

     (4) "Bazaar" means an enterprise principally devoted to the exhibition of products of crafts

and art, to which the operation of amusement rides or devices or concession booths is an adjunct.

     (5) "Carnival" means a transient enterprise offering amusement or entertainment to the

public in, upon or by means of amusement devices, rides or concession booths.

     (6) "Certificate to operate" means that document which indicates that the temporary

amusement device has undergone the inspection required after setup. It shall show the date of

inspection, the location of the inspection, the name of the inspector, and the maximum amount of

weight allowed per car or rideable unit.

     (7) "Commissioner" means the state building commissioner.

     (8) "Department" means the department of administration business regulation.

     (9) "Director" means the director of the department of administration business regulation.

     (10) "Fair" means an enterprise principally devoted to the exhibition of products of

agriculture or industry, to which the operation of amusement rides or devices or concession booths

is an adjunct.

     (11) "Home-made ride or device" means a ride or device that was not manufactured by a

recognized ride or device manufacturer or any ride or device which has been substantially altered

without the approval of the manufacturer.

     (12) "Inspection" means the physical examination of an amusement ride or device made

by the commissioner, or his authorized representative, prior to operating the amusement device for

the purpose of approving the application for a license.

     (13) "Kiddie ride" means a device designed primarily to carry a specific number of children

in a fixture suitable for conveying children up to forty-two inches (42") in height or ride

manufacturer specifications.

     (14) "Major alteration" means a change in the type, capacity, structure or mechanism of an

amusement device. This includes any change that would require approval of the ride manufacturer

or an engineer.

     (15) "Major ride" means a device designed to carry a specific maximum number of

passengers, adults and children, in a fixture suitable for conveying persons.

     (16) "Manager" means a person having possession, custody, or managerial control of an

amusement device, amusement attraction, or temporary structure, whether as owner, lessee, or

agent or otherwise.

     (17) "Owner" means the person or persons holding title to, or having possession or control

of the amusement ride or device or concession booth.

     (18) "Permanent amusement ride" means an amusement ride which is erected to remain a

lasting part of the premises.

     (19) "Permit" means that document which signifies that the amusement device or

amusement attraction has undergone and passed its annual inspection. The department shall affix a

decal which clearly shows the month and year of expiration.

     (20) "Qualified licensed engineer" means a licensed mechanical engineer who has at least

five (5) years of experience in his or her field and has experience in amusement ride inspection.

     (21) "Reinspection" means an inspection which is made at any time after the initial

inspection.

     (22) "Repair" means to restore an amusement ride to a condition equal to or better than the

original design specifications.

     (23) "Ride file jacket" means a file concerning an individual amusement ride or device

which contains nondestructive test reports on the testing firm's official letterhead; the name of the

ride, the manufacturer and date of manufacture; maintenance records; records of any alterations;

ride serial number; daily check lists and engineer's reports and proof of insurance. Non-destructive

test reports shall not be required on any rides which are nonmechanical and which are not provided

by the manufacturer with said amusement ride.

     (24) "Ride operator" means the person in charge of an amusement ride or device and who

causes the amusement ride or device to operate.

     (25) "Serious injury" means an injury requiring a minimum of one overnight stay in a

hospital for treatment or observation.

     (26) "Stop order" means any order issued by an inspector for the temporary cessation of a

ride or device.

     (27) "Temporary amusement device" means a device which is used as an amusement

device or amusement attraction that is regularly relocated from time to time, with or without

disassembly.

     SECTION 6. Section 42-7.3-3 of the General Laws in Chapter 42-7.3 entitled “Department

of Public Safety” is hereby amended as follows:

     42-7.3-3. Powers and duties of the department.

     The department of public safety shall be responsible for the management and

administration of the following divisions and agencies:

     (a) Office of the capitol police (chapter 2.2 of title 12).

     (b) State fire marshal (chapter 28.2 of title 23)

     (c) E-911 emergency telephone system division (chapter 28.2 of title 39).

     (d) Rhode Island state police (chapter 28 of title 42).

     (e) Municipal police training academy (chapter 28.2 of title 42).

     (f) Division of sheriffs (chapter 7.3 of title 42).

     SECTION 7. Section 42-11-2.9 of the General Laws in Chapter 42-11 entitled “Department

of Administration” is hereby amended as follows:

     42-11-2.9. Division of capital asset management and maintenance established.

     (a) Establishment. Within the department of administration there shall be established the

division of capital asset management and maintenance ("DCAMM"). Any prior references to the

division of facilities management and/or capital projects, if any, shall now mean DCAMM. Within

the DCAMM there shall be a director of DCAMM who shall be in the classified service and shall

be appointed by the director of administration. The director of DCAMM shall have the following

responsibilities:

     (1) Oversee, coordinate, and manage the operating budget, personnel, and functions of

DCAMM in carrying out the duties described below;

     (2) Review agency capital-budget requests to ensure that the request is consistent with

strategic and master facility plans for the state of Rhode Island;

     (3) Promulgate and adopt regulations necessary to carry out the purposes of this section.

     (b) Purpose. The purpose of the DCAMM shall be to manage and maintain state property

and state-owned facilities in a manner that meets the highest standards of health, safety, security,

accessibility, energy efficiency, and comfort for citizens and state employees and ensures

appropriate and timely investments are made for state property and facility maintenance.

     (c) Duties and responsibilities of DCAMM. DCAMM shall have the following duties and

responsibilities:

     (1) To oversee all new construction and rehabilitation projects on state property, not

including property otherwise assigned outside of the executive department by Rhode Island general

laws or under the control and supervision of the judicial branch;

     (2) To assist the department of administration in fulfilling any and all capital-asset and

maintenance-related statutory duties assigned to the department under chapter 8 of title 37 (public

buildings) or any other provision of law, including, but not limited to, the following statutory duties

provided in § 42-11-2:

     (i) To maintain, equip, and keep in repair the state house, state office buildings, and other

premises, owned or rented by the state, for the use of any department or agency, excepting those

buildings, the control of which is vested by law in some other agency;

     (ii) To provide for the periodic inspection, appraisal, or inventory of all state buildings and

property, real and personal;

     (iii) To require reports from state agencies on the buildings property in their custody;

     (iv) To issue regulations to govern the protection and custody of the property of the state;

     (v) To assign office and storage space, and to rent and lease land and buildings, for the use

of the several state departments and agencies in the manner provided by law;

     (vi) To control and supervise the acquisition, operation, maintenance, repair, and

replacement of state-owned motor vehicles by state agencies;

     (3) To generally manage, oversee, protect, and care for the state's properties and facilities,

not otherwise assigned by Rhode Island general laws, including, but not limited to, the following

duties:

     (i) Space management, procurement, usage, and/or leasing of private or public space;

     (ii) Care, maintenance, cleaning, and contracting for such services as necessary for state

property;

     (iii) Capital equipment replacement;

     (iv) Security of state property and facilities unless otherwise provided by law;

     (v) Ensuring Americans with Disabilities Act (ADA) compliance;

     (vi) Responding to facilities emergencies;

     (vii) Managing traffic flow on state property;

     (viii) Grounds keeping/landscaping/snow-removal services;

     (ix) Maintenance and protection of artwork and historic artifacts;

     (4) To manage and oversee state fleet operations.

     (d) All state agencies shall participate in a statewide database and/or information system

for capital assets, that shall be established and maintained by DCAMM.

     (e) Offices and boards assigned to DCAMM. DCAMM shall oversee the following boards,

offices, and functions:

     (1) Office of planning, design, and construction (PDC);

     (2) Office of facilities management and maintenance (OFMM);

     (3) Contractors' registration and licensing board (§ 5-65-1 seq.);

     (4) State building code (§ 23-27.3-1 et seq.);

     (5) Office of risk management (§ 37-11-1 et seq.);

     (6) Fire safety code board of appeal and review (§ 23-28.3-1 et seq.);

     (7) Office of state fleet operations (§ 42-11-2.4(d)).

     (f) The boards, offices, and functions assigned to DCAMM shall:

     (1) Exercise their respective powers and duties in accordance with their statutory authority

and the general policy established by the director of DCAMM or in accordance with the powers

and authorities conferred upon the director of DCAMM by this section;

     (2) Provide such assistance or resources as may be requested or required by the director of

DCAMM or the director of administration;

     (3) Provide such records and information as may be requested or required by the director

of DCAMM or the director of administration; and

     (4) Except as provided herein, no provision of this chapter or application thereof shall be

construed to limit or otherwise restrict the offices stated above from fulfilling any statutory

requirement or complying with any valid rule or regulation.

     SECTION 8. Sections 42-14-1, 42-14-2, 42-14-4, 42-14-5, 42-14-6, 42-14-7, 42-14-8, 42-

14-11, 42-14-16 and 42-14-16.1 of the General Laws in Chapter 42-14 entitled “Department of

Business Regulation” are hereby amended as follows:

     42-14-1. Establishment – Head of department.

     There shall be a department of business regulation. The head of the department shall be the

director of business regulation who shall carry out, except as otherwise provided by this title, shall

carry out this chapter; chapters 1, 2, and 4 – 12, inclusive, of title 3; chapters 3, 20.5, 38, 49, 52, 53

and 58 of title 5; chapter 31 of title 6; chapter 11 of title 7; chapters 1 – 29, inclusive, of title 19,

except § 19-24-6; chapter 28.6 of title 21; chapter 26 of title 23; chapters 1 – 36, inclusive, of title

27. The director of business regulation shall also and perform the duties required by any and all

other provisions of the general laws and public laws insofar as those provisions relate to the director

of revenue and regulation, chief of the division of banking and insurance, chief of the division of

intoxicating beverages, and each of the divisions and licensing and regulatory areas within the

jurisdiction of the department, except as otherwise provided by this title.

     42-14-2. Functions of department.

     (a) It shall be the function of the department of business regulation:

     (1) To regulate and control banking and insurance, foreign surety companies, sale of

securities, building and loan associations, fraternal benefit and beneficiary societies;

     (2) To regulate and control the manufacture, transportation, possession, and sale of

alcoholic beverages;

     (3) To license and regulate the manufacture and sale of articles of bedding, upholstered

furniture, and filling materials;

     (4) To regulate the licensing of compassion centers, licensed cultivators, and cooperative

cultivations pursuant to chapter 28.6 of title 21 of the general laws to license, regulate and control

all areas as required by this chapter and any and all other provisions of the general laws and public

laws.

     (b) Whenever any hearing is required or permitted to be held pursuant to law or regulation

of the department of business regulation, and whenever no statutory provision exists providing that

notice be given to interested parties prior to the hearing, no such hearing shall be held without

notice in writing being given at least ten (10) days prior to such hearing to all interested parties.

For purposes of this section, an "interested party" shall be deemed to include the party subject to

regulation hereunder, the Rhode Island consumers' council, and any party entitled to appear at the

hearing. Notice to the party that will be subject to regulation, the Rhode Island consumers' council

[Repealed], and any party who has made known his or her intention to appear at the hearing shall

be sufficient if it be in writing and mailed, first class mail, to the party at his or her regular business

address. Notice to the general public shall be sufficient hereunder if it be by publication in a

newspaper of general circulation in the municipality affected by the regulation.

     42-14-4. Banking and insurance financial services divisions Financial services

division.

     Within the department of business regulation there shall be a division of financial services

that oversees the regulation and control of banking division and an insurance division and such

other matters within the jurisdiction of the department as determined by the director. The divisions

division shall have offices which shall be assigned to them it by the department of administration.

     A s Superintendents shall be in charge of each division, of banking and insurance reporting

to the director, deputy director and/or health insurance commissioner as appropriate shall be in

charge of all matters relating to banking and insurance.

     42-14-5. Administrator Superintendents of banking and insurance Superintendents

of banking and insurance.

     (a) The director of business regulation shall, in addition to his or her regular duties, act as

administrator of banking and insurance and superintendents of banking and insurance shall

administer the functions of the department relating to the regulation and control of banking and

insurance, foreign surety companies, sale of securities, building and loan associations, and fraternal

benefit and beneficiary societies.

     (b) Wherever the words "banking administrator" or “banking commissioner” or "insurance

administrator" or “insurance commissioner” occur in this chapter or any general law, public law,

act, or resolution of the general assembly or department regulation, they shall be construed to mean

superintendent of banking commissioner and superintendent of insurance commissioner except as

delineated in subsection (d) below.

     (c) "Health insurance" shall mean "health insurance coverage," as defined in §§ 27-18.5-2

and 27-18.6-2, "health benefit plan," as defined in § 27-50-3 and a "medical supplement policy,"

as defined in § 27-18.2-1 or coverage similar to a Medicare supplement policy that is issued to an

employer to cover retirees, and dental coverage, including, but not limited to, coverage provided

by a nonprofit dental service plan as defined in subsection 27-20.1-1(3).

     (d) Whenever the words "commissioner," "insurance commissioner", "Health insurance

commissioner" or "director" appear in Title 27 or Title 42, those words shall be construed to mean

the health insurance commissioner established pursuant to § 42-14.5-1 with respect to all matters

relating to health insurance. The health insurance commissioner shall have sole and exclusive

jurisdiction over enforcement of those statutes with respect to all matters relating to health

insurance.

     (e) Whenever the word “director” appears or is a defined term in Title 19, this word shall

be construed to mean the superintendent of banking established pursuant to this section.

     (f) Whenever the word “director” or “commissioner” appears or is a defined term in Title

27, this word shall be construed to mean the superintendent of insurance established pursuant to

this section except as delineated in subsection (d) of this section.

     42-14-6. Restrictions on interests of administrator superintendents Restrictions on

interests of superintendents.

     The administrator superintendents of banking and insurance shall not engage in any other

business or be an officer of or directly or indirectly interested in any national bank doing business

in this state, or in any bank, savings bank, or trust company organized under the laws of this state,

nor be directly or indirectly interested in any corporation, business, or occupation that requires his

or her official supervision; absent compliance with § 42-14-6.1, nor shall the administrator no

superintendent shall become indebted to any bank, savings bank, or trust company organized under

the laws of this state, nor shall he or she engage or be interested in the sale of securities as a business,

or in the negotiation of loans for others.

     42-14-7. Deputies to administrator superintendents Deputies to superintendents.

     The administrator superintendent of banking and the superintendent of insurance may

appoint one or more deputies to assist him or her in the performance of his or her duties, who shall

be removable at the pleasure of the administrator superintendent, and the administrator

superintendent in his or her official capacity shall be liable for any deputy's misconduct or neglect

of duty in the performance of his or her official duties. Service of process upon any deputy, or at

the office of the administrator superintendent upon some person there employed, at any time, shall

be as effectual as service upon the administrator superintendent.

     42-14-8. Clerical assistance and expenses.

     The administrator superintendent of banking and the superintendent of insurance may

employ such clerical assistance and incur such office and traveling expenses for him or herself, his

or her deputies and assistants as may be necessary in the performance of his or her other duties, and

as provided by this title, within the amounts appropriated therefor.

     42-14-11. Subpoena power – False swearing.

     (a) In connection with any matters having to do with the discharge of his or her duties

pursuant to this chapter, the director or his or her designee, in all cases of every nature pending

before him or her, is hereby authorized and empowered to summon witnesses to attend and testify

in like manner as in either the supreme or the superior courts. The director or his or her designee is

authorized to compel the production of all papers, books, documents, records, certificates or other

legal evidence that may be necessary for the determination and the decision of any question or the

discharge of any duty required by law of the department, including the functions of the director as

a member of the board of bank incorporation and board of building-loan association incorporation

superintendents of banking and insurance, by issuing a subpoena duces tecum signed by the director

or his or her designee.

     (b) Every person who disobeys this writ shall be considered in contempt of the department,

and the department may punish that and any other contempt of the authority in like manner as

contempt may be punished in either the supreme or the superior court.

     (c) Any person who shall willfully swear falsely in any proceedings, matter or hearing

before the department shall be deemed guilty of the crime of perjury.

     42-14-16. Insurance – Administrative penalties.

     (a) Whenever the director or his or her designee shall have cause to believe that a violation

of title 27 and/or chapters 14, 14.5, 62 or 128.1 of title 42 or the regulations promulgated thereunder

has occurred by a licensee, or any person or entity conducting any activities requiring licensure

under title 27, the director or his or her designee may, in accordance with the requirements of the

Administrative Procedures Act, chapter 35 of this title:

     (1) Revoke or suspend a license;

     (2) Levy an administrative penalty in an amount not less than one hundred dollars ($100)

nor more than fifty thousand dollars ($50,000);

     (3) Order the violator to cease such actions;

     (4) Require the licensee or person or entity conducting any activities requiring licensure

under title 27 to take such actions as are necessary to comply with title 27 and/or chapters 14, 14.5,

62, or 128.1 of title 42, or the regulations thereunder; or

     (5) Any combination of the above penalties.

     (b) Any monetary penalties assessed pursuant to this section shall be as general revenues.

     42-14-16.1. Order to cease and desist.

     (a) If the director or his or her designee has reason to believe that any person, firm,

corporation or association is conducting any activities requiring licensure under title 27 or any other

provisions of the general laws or public laws within the jurisdiction of the department without

obtaining a license, or who after the denial, suspension or revocation of a license conducts any

activities requiring licensure under title 27 or any other provisions of the general laws or public

laws within the jurisdiction of the department, the department may issue its order to that person,

firm, corporation or association commanding them to appear before the department at a hearing to

be held no sooner than ten (10) days nor later than twenty (20) days after issuance of that order to

show cause why the department should not issue an order to that person to cease and desist from

the violation of the provisions of title 27 applicable law.

     (b) The order to show cause may be served on any person, firm, corporation or association

named in the order in the same manner that summons in a civil action may be served, or by mailing

a copy of the order, certified mail, return receipt requested, to that person at any address at which

he or she has done business or at which he or she lives. If, upon that hearing, the department is

satisfied that the person is in fact violating any provision of title 27 applicable law, then the

department may order that person, in writing, to cease and desist from that violation.

     (c) All hearings shall be governed in accordance with chapter 35 of this title, the

"Administrative Procedures Act." If that person fails to comply with an order of the department

after being afforded a hearing, the superior court in Providence county has jurisdiction upon

complaint of the department to restrain and enjoin that person from violating this chapter.

     SECTION 9. Section 42-28-3 of the General Laws in Chapter 42-28 entitled “State Police”

is hereby amended as follows:

     42-28-3. Scope of responsibilities. 

     (a) The Rhode Island state police and the superintendent shall be charged with the

responsibility of:

     (1) Providing a uniformed force for law enforcement;

     (2) Preparing rules and regulations for law enforcement;

     (3) Maintaining facilities for crime detection and suppression; and

     (4) Controlling traffic and maintaining safety on the highways.

     (b) The superintendent shall be ex-officio state fire marshal.

     (c) The superintendent shall also serve as the director of the department of public safety. 

     SECTION 10. Section 42-28-26 of the General Laws in Chapter 42-28 entitled "State

Police" is hereby repealed.

     42-28-26. Location of school.

     The municipal police training school shall be maintained by the state and located on the

premises of the University of Rhode Island and such other state-owned property as the

superintendent of the state police, with the consent of the governor, may from time to time

determine.

     SECTION 11. Section 42-133-6 of the General Laws in Chapter entitled “Tobacco

Settlement Financing Corporation Act” is hereby amended to read as follows:

     42-133-6. Board and officers. 

     (a)(1) The powers of the corporation shall be vested in a board consisting of five (5)

members, which shall constitute the governing body of the corporation, and which shall be

comprised as follows: two (2) members of the state investment commission to be appointed by the

governor who shall give due consideration to the recommendation of the chair of the investment

commission, the state budget officer, who shall serve as chairperson, the general treasurer or

designee, the director of revenue or designee and three (3) two (2) members of the general public

appointed by the governor with the advice and consent of the senate. Each public member shall

serve for a term of two (2) four (4) years, except that any member appointed to fill a vacancy shall

serve only until the expiration of the unexpired term of such member's predecessor in office. Each

member shall continue to hold office until a successor has been appointed. Members shall be

eligible for reappointment. No person shall be eligible for appointment unless such person is a

resident of the state. Each member, before entering upon the duties of the office of member, shall

swear or solemnly affirm to administer the duties of office faithfully and impartially, and such oath

or affirmation shall be filed in the office of the secretary of state.

     (2) Those members of the board as of July 9, 2005 who were appointed to the board by

members of the general assembly shall cease to be members of the board on July 9, 2005, and the

governor shall thereupon seek recommendations from the chair of the state investment commission

for him or her duly to consider for the appointment of two (2) members thereof. Those members of

the board as of July 9, 2005 who were appointed to the board by the governor shall continue to

serve the balance of their current terms.

     (3) Newly appointed and qualified public members shall, within six (6) months of their

qualification or designation, attend a training course that shall be developed with board approval

and conducted by the chair of the board and shall include instruction in the subject area of chapters

46 of this title, 133 of this title, 14 of title 36, and 2 of title 38; and the board's rules and regulations.

The director of the department of administration shall, within ninety (90) days of July 9, 2005,

prepare and disseminate training materials relating to the provisions of chapters 46 of this title, 14

of title 36 and 2 of title 38.

     (b) Members shall receive no compensation for the performance of their duties.

     (c) The board shall elect one of its members to serve as chairperson. Three (3) members

shall constitute a quorum, and any action to be taken by the corporation under the provisions of this

chapter may be authorized by resolution approved by a majority of the members present and voting

at any regular or special meeting at which a quorum is present.

     (d) In addition to electing a chairperson, the The board shall appoint a secretary and such

additional officers as it shall deem appropriate.

     (e) Any action taken by the corporation under the provisions of this chapter may be

authorized by vote at any regular or special meeting, and the vote shall take effect immediately.

     (f) Any action required by this chapter to be taken at a meeting of the board shall comply

with chapter 46 of this title, entitled "Open Meetings."

     (g) To the extent that administrative assistance is needed for the functions and operations

of the board, the corporation may by contract or agreement obtain this assistance from the director

of administration, the attorney general, and any successor officer at such cost to the corporation as

shall be established by such contract or agreement. The board, however, shall remain responsible

for, and provide oversight of, proper implementation of this chapter.

     (h) Members of the board and persons acting on the corporation's behalf, while acting

within the scope of their employment or agency, are not subject to personal liability resulting from

carrying out the powers and duties conferred on them under this chapter.

     (i) The state shall indemnify and hold harmless every past, present, or future board member,

officer or employee of the corporation who is made a party to or is required to testify in any action,

investigation, or other proceeding in connection with or arising out of the performance or alleged

lack of performance of that person's duties on behalf of the corporation. These persons shall be

indemnified and held harmless, whether they are sued individually or in their capacities as board

members, officers or employees of the corporation, for all expenses, legal fees and/or costs incurred

by them during or resulting from the proceedings, and for any award or judgment arising out of

their service to the corporation that is not paid by the corporation and is sought to be enforced

against a person individually, as expenses, legal fees, costs, awards or judgments occur; provided,

that neither the state nor the corporation shall indemnify any member, officer, or employee:

     (1) For acts or omissions not in good faith or which involve intentional misconduct or a

knowing violation of law;

     (2) For any transaction from which the member derived an improper personal benefit; or

     (3) For any malicious act.

     (j) Public members of the board shall be removable by the governor, pursuant to the

provisions of § 36-1-7, for cause only, and removal solely for partisan or personal reasons unrelated

to capacity or fitness for the office shall be unlawful. 

     SECTION 12. Sections 44-31.2-2 and 44-31.2-6 of the General Laws in Chapter 44-31.2

entitled “Motion Picture Production Tax Credits” are hereby amended to read as follows:

     44-31.2-2. Definitions. 

     For the purposes of this chapter:

     (1) "Accountant's certification" as provided in this chapter means a certified audit by a

Rhode Island certified public accountant licensed in accordance with chapter 3.1 of title 5.

     (2) "Application year" means within the calendar year the motion picture production

company files an application for the tax credit.

     (3) "Base investment" means the actual investment made and expended by a state-certified

production in the state as production-related costs.

     (4) "Documentary production" means a non-fiction production intended for educational or

commercial distribution that may require out-of-state principal photography.

     (5) "Domiciled in Rhode Island" means a corporation incorporated in Rhode Island or a

partnership, limited liability company, or other business entity formed under the laws of the state

of Rhode Island for the purpose of producing motion pictures as defined in this section, or an

individual who is a domiciled resident of the state of Rhode Island as defined in chapter 30 of this

title.

     (6) "Final production budget" means and includes the total pre-production, production, and

post-production out-of-pocket costs incurred and paid in connection with the making of the motion

picture. The final production budget excludes costs associated with the promotion or marketing of

the motion picture.

     (7) "Motion picture" means a feature-length film, documentary production, video,

television series, or commercial made in Rhode Island, in whole or in part, for theatrical or

television viewing or as a television pilot or for educational distribution. The term "motion picture"

shall not include the production of television coverage of news or athletic events, nor shall it apply

to any film, video, television series, or commercial or a production for which records are required

under 18 U.S.C. § 2257, to be maintained with respect to any performer in such production or

reporting of books, films, etc. with respect to sexually explicit conduct.

     (8) "Motion picture production company" means a corporation, partnership, limited

liability company, or other business entity engaged in the business of producing one or more motion

pictures as defined in this section. Motion picture production company shall not mean or include:

     (a) Any company owned, affiliated, or controlled, in whole or in part, by any company or

person who or that is in default:

     (i) On taxes owed to the state; or

     (ii) On a loan made by the state in the application year; or

     (iii) On a loan guaranteed by the state in the application year; or

     (b) Any company or person who or that has discharged an obligation to pay or repay public

funds or monies by:

     (i) Filing a petition under any federal or state bankruptcy or insolvency law;

     (ii) Having a petition filed under any federal or state bankruptcy or insolvency law against

such company or person;

     (iii) Consenting to, or acquiescing or joining in, a petition named in (i) or (ii);

     (iv) Consenting to, or acquiescing or joining in, the appointment of a custodian, receiver,

trustee, or examiner for such company's or person's property; or

     (v) Making an assignment for the benefit of creditors or admitting in writing or in any legal

proceeding its insolvency or inability to pay debts as they become due.

     (9) "Primary locations" means the locations that (1) At least fifty-one percent (51%) of the

motion picture principal photography days are filmed; or (2) At least fifty-one percent (51%) of the

motion picture's final production budget is spent and employs at least five (5) individuals during

the production in this state; or (3) For documentary productions, the location of at least fifty-one

percent (51%) of the total productions days, which shall include pre-production and post-

production locations.

     (10) "Rhode Island film and television office" means an office within the department of

administration Rhode Island Council on the Arts that has been established in order to promote and

encourage the locating of film and television productions within the state of Rhode Island. The

office is also referred to within as the "film office".

     (11) "State-certified production" means a motion picture production approved by the

Rhode Island film office and produced by a motion picture production company domiciled in

Rhode Island, whether or not such company owns or controls the copyright and distribution rights

in the motion picture; provided, that such company has either:

     (a) Signed a viable distribution plan; or

     (b) Is producing the motion picture for:

     (i) A major motion picture distributor;

     (ii) A major theatrical exhibitor;

     (iii) Television network; or

     (iv) Cable television programmer.

     (12) "State-certified production cost" means any pre-production, production, and post-

production cost that a motion picture production company incurs and pays to the extent it occurs

within the state of Rhode Island. Without limiting the generality of the foregoing, "state-certified

production costs" include: set construction and operation; wardrobes, make-up, accessories, and

related services; costs associated with photography and sound synchronization, lighting, and related

services and materials; editing and related services, including, but not limited to: film processing,

transfers of film to tape or digital format, sound mixing, computer graphics services, special effects

services, and animation services, salary, wages, and other compensation, including related benefits,

of persons employed, either directly or indirectly, in the production of a film including writer,

motion picture director, producer (provided the work is performed in the state of Rhode Island);

rental of facilities and equipment used in Rhode Island; leasing of vehicles; costs of food and

lodging; music, if performed, composed, or recorded by a Rhode Island musician, or released or

published by a person domiciled in Rhode Island; travel expenses incurred to bring persons

employed, either directly or indirectly, in the production of the motion picture, to Rhode Island (but

not expenses of such persons departing from Rhode Island); and legal (but not the expense of a

completion bond or insurance and accounting fees and expenses related to the production's

activities in Rhode Island); provided such services are provided by Rhode Island licensed attorneys

or accountants. 

     44-31.2-6. Certification and administration. 

     (a) Initial certification of a production. The applicant shall properly prepare, sign and

submit to the film office an application for initial certification of the Rhode Island production. The

application shall include such information and data as the film office deems necessary for the proper

evaluation and administration of said application, including, but not limited to, any information

about the motion picture production company, and a specific Rhode Island motion picture. The film

office shall review the completed application and determine whether it meets the requisite criteria

and qualifications for the initial certification for the production. If the initial certification is granted,

the film office shall issue a notice of initial certification of the motion picture production to the

motion picture production company and to the tax administrator. The notice shall state that, after

appropriate review, the initial application meets the appropriate criteria for conditional eligibility.

The notice of initial certification will provide a unique identification number for the production and

is only a statement of conditional eligibility for the production and, as such, does not grant or

convey any Rhode Island tax benefits.

     (b) Final certification of a production. Upon completion of the Rhode Island production

activities, the applicant shall request a certificate of good standing from the Rhode Island division

of taxation. Such certificates shall verify to the film office the motion picture production company's

compliance with the requirements of subsection 44-31.2-2(5). The applicant shall properly prepare,

sign and submit to the film office an application for final certification of the production and which

must include the certificate of good standing from the division of taxation. In addition, the

application shall contain such information and data as the film office determines is necessary for

the proper evaluation and administration, including, but not limited to, any information about the

motion picture production company, its investors and information about the production previously

granted initial certification. The final application shall also contain a cost report and an

"accountant's certification". The film office and tax administrator may rely without independent

investigation, upon the accountant's certification, in the form of an opinion, confirming the

accuracy of the information included in the cost report. Upon review of a duly completed and filed

application, the film office will make a determination pertaining to the final certification of the

production. Within ninety (90) days after the division of taxation's receipt of the motion picture

production company final certification and cost report, the division of taxation shall issue a

certification of the amount of credit for which the motion picture production company qualifies

under § 44-31.2-5. To claim the tax credit, the division of taxation's certification as to the amount

of the tax credit shall be attached to all state tax returns on which the credit is claimed.

     (c) Final certification and credits. Upon determination that the motion picture production

company qualifies for final certification, the film office shall issue a letter to the production

company indicating "certificate of completion of a state certified production". A motion picture

production company is prohibited from using state funds, state loans or state guaranteed loans to

qualify for the motion picture tax credit. All documents that are issued by the film office pursuant

to this section shall reference the identification number that was issued to the production as part of

its initial certification.

     (d) The director of the department of,administration, the Rhode Island Council on the Arts,

in consultation as needed with the tax administrator, shall promulgate such rules and regulations as

are necessary to carry out the intent and purposes of this chapter in accordance with the general

guidelines provided herein for the certification of the production and the resultant production credit.

     (e) The tax administrator of the division of taxation, in consultation with the director of the

Rhode Island film and television office, shall promulgate such rules and regulations as are

necessary to carry out the intent and purposes of this chapter in accordance with the general

guidelines for the tax credit provided herein.

     (f) Any motion picture production company applying for the credit shall be required to

reimburse the division of taxation for any audits required in relation to granting the credit. 

     SECTION 13. This Article shall take effect upon passage.