2018 -- H 7200

========

LC003937

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

____________

A N   A C T

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL

YEAR ENDING JUNE 30, 2019

     

     Introduced By: Representative Marvin L. Abney

     Date Introduced: January 18, 2018

     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 2019

2

ARTICLE 2 RELATING TO STATE FUNDS

3

ARTICLE 3 RELATING TO GOVERNMENT REFORM

4

ARTICLE 4 RELATING TO TAXES AND REVENUE

5

ARTICLE 5 RELATING TO CAPITAL DEVELOPMENT PROGRAM

6

ARTICLE 6 RELATING TO LICENSING

7

ARTICLE 7 RELATING TO FEES

8

ARTICLE 8 RELATING TO MOTOR VEHICLES

9

ARTICLE 9 RELATING TO SCHOOL CONSTRUCTION AND EDUCATION

10

ARTICLE 10 RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT

11

OF FY 2018

12

ARTICLE 11 RELATING TO WORKFORCE DEVELOPMENT

13

ARTICLE 12 RELATING TO ECONOMIC DEVELOPMENT

14

ARTICLE 13 RELATING TO MEDICAL ASSISTANCE

15

ARTICLE 14 RELATING TO MEDICAID RESOLUTION

16

ARTICLE 15 RELATING TO CHILDREN AND FAMILIES

17

ARTICLE 16 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

18

ARTICLE 17 RELATING TO THE EDWARD O. HAWKINS AND THOMAS C. SLATER

 

1

MEDICAL MARIJUANA ACT

2

ARTICLE 18 RELATING TO EFFECTIVE DATE

 

LC003937 - Page 2 of 402

1

ARTICLE 1

2

RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2019

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

2019. 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 the

8

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 2,869,675

15

Total – Central Management 2,869,675

16

Legal Services

17

General Revenues 2,376,888

18

Total – Legal Services 2,376,888

19

Accounts and Control

20

General Revenues 5,273,496

21

Restricted Receipt – OPEB Board Administration 225,295

22

Total – Accounts and Control 5,498,791

23

Office of Management and Budget

24

General Revenues 9,039,148

25

Restricted Receipts 300,046

26

Other Funds 1,222,835

27

Total – Office of Management and Budget 10,562,029

28

Purchasing

29

General Revenues 2,821,641

30

Restricted Receipts 540,000

31

Other Funds 463,729

32

Total – Purchasing 3,825,370

33

Human Resources

34

General Revenues 1,274,257

 

LC003937 - Page 3 of 402

1

Total – Human Resources 1,274,257

2

Personnel Appeal Board

3

General Revenues 149,477

4

Total – Personnel Appeal Board 149,477

5

Information Technology

6

General Revenues 1,470,255

7

Federal Funds 115,000

8

Restricted Receipts 10,228,243

9

Other Funds 88,071

10

Total – Information Technology 11,901,569

11

Library and Information Services

12

General Revenues 1,426,852

13

Federal Funds 1,220,416

14

Restricted Receipts 5,500

15

Total – Library and Information Services 2,652,768

16

Planning

17

General Revenues 498,353

18

Federal Funds 15,448

19

Other Funds

20

Air Quality Modeling 24,000

21

Federal Highway – PL Systems Planning 3,654,326

22

FTA – Metro Planning Grant 1,063,699

23

Total Other Funds

24

Total – Planning 5,255,826

25

General

26

General Revenues

27

Miscellaneous Grants/Payments 100,000

28

     Provided that this amount be allocated to City Year for the Whole School Child Program,

29

which provides individualized support to at-risk students.

30

Torts – Courts/Awards 400,000

31

State Employees/Teachers Retiree Health Subsidy 2,321,057

32

Resource Sharing and State Library Aid 9,362,072

33

Library Construction Aid 2,176,471

34

General Revenues Total 14,359,600

 

LC003937 - Page 4 of 402

1

Restricted Receipts 700,000

2

Rhode Island Capital Plan Funds

3

Security Measures State Buildings 250,000

4

Energy Efficiency Improvements 500,000

5

Cranston Street Armory 500,000

6

State House Energy Management Improvement 150,000

7

State House Renovations 1,175,000

8

Zambarano Building Rehabilitation 1,500,000

9

Cannon Building 600,000

10

Old State House 500,000

11

State Office Building 350,000

12

Old Colony House 50,000

13

William Powers Building 2,000,000

14

Pastore Center Utility System Upgrades 1,300,000

15

Pastore Center Rehabilitation 2,000,000

16

Replacement Fuel Tanks 300,000

17

Environmental Compliance 200,000

18

Big River Management Area 100,000

19

Pastore Center Building Demolition 750,000

20

Washington County Government Center 950,000

21

Veterans Memorial Auditorium 200,000

22

Chapin Health Laboratory 1,000,000

23

Shepard Building Upgrades 650,000

24

Pastore Center Water Tanks 280,000

25

RI Convention Center Authority 1,000,000

26

Dunkin Donuts Center 1,500,000

27

Mathias Building Renovations 7,175,000

28

Pastore Power Plan Rehabilitation 750,000

29

Accessibility – Facility Renovations 500,000

30

Hospital Consolidation 11,810,000

31

Information Operations System 800,000

32

Other Funds Total 38,840,000

33

Total – General 53,899,600

34

Debt Service Payments

 

LC003937 - Page 5 of 402

1

General Revenues 141,761,915

2

     Out of the general revenue appropriations for debt service, the General Treasurer is

3

authorized to make payments for the I-195 Redevelopment District Commission loan up to the

4

maximum debt service due in accordance with the loan agreement.

5

Federal Funds 1,870,830

6

Other Funds

7

Transportation Debt Service 40,022,948

8

Investment Receipts – Bond Funds 100,000

9

Other Funds Total 40,122,948

10

Total - Debt Service Payments 183,755,693

11

Energy Resources

12

Federal Funds 524,820

13

Restricted Receipts 8,179,192

14

Total – Energy Resources 8,704,012

15

Rhode Island Health Exchange

16

General Revenue 2,363,841

17

Federal Funds 138,089

18

Restricted Receipts 5,754,213

19

Total – Rhode Island Health Exchange 8,256,143

20

Office of Diversity, Equity & Opportunity

21

General Revenues 1,253,362

22

Other Funds 113,530

23

Total – Office of Diversity, Equity & Opportunity 1,366,892

24

Capital Asset Management and Maintenance

25

General Revenues 9,804,474

26

Total – Capital Asset Management and Maintenance 9,804,474

27

Personnel/Operating Reforms

28

General Revenues (13,700,000)

29

Total- Personnel/Operating Reforms (13,700,000)

30

      Grand Total – General Revenues - Administration 183,043,234

31

      Grand Total – Administration 298,453,464

32

Business Regulation

33

Central Management

34

General Revenues 2,213,227

 

LC003937 - Page 6 of 402

1

Total – Central Management 2,213,227

2

Banking Regulation

3

General Revenues 1,820,725

4

Restricted Receipts 75,000

5

Total – Banking Regulation 1,895,725

6

Securities Regulation

7

General Revenues 992,821

8

Restricted Receipts 15,000

9

Total – Securities Regulation 1,007,821

10

Insurance Regulation

11

General Revenues 3,872,109

12

Restricted Receipts 1,994,860

13

Total – Insurance Regulation 5,866,969

14

Office of the Health Insurance Commissioner

15

General Revenues 1,638,304

16

Federal Funds 513,791

17

Restricted Receipts 234,507

18

Total – Office of the Health Insurance Commissioner 2,386,602

19

Board of Accountancy

20

General Revenues 6,000

21

Total – Board of Accountancy 6,000

22

Commercial Licensing, Racing & Athletics

23

General Revenues 1,088,106

24

Restricted Receipts 2,210,146

25

Total – Commercial Licensing, Racing & Athletics 3,298,252

26

Building, Design and Fire Professionals

27

General Revenues 5,535,059

28

Federal Funds 378,840

29

Restricted Receipts 1,875,299

30

Other Funds

31

Quonset Development Corporation 66,497

32

Other Funds Total 66,497

33

Total – Building, Design and Fire Professionals 7,855,695

34

Grand Total – General Revenues – Business Regulation 17,166,351

 

LC003937 - Page 7 of 402

1

Grand Total – Business Regulation 24,530,291

2

Executive Office of Commerce

3

Central Management

4

General Revenues 1,287,095

5

Total – Central Management 1,287,095

6

Housing and Community Development

7

General Revenues 906,165

8

Federal Funds 14,445,458

9

Restricted Receipts 4,754,319

10

Total – Housing and Community Development 20,105,942

11

Quasi–Public Appropriations

12

General Revenues

13

Rhode Island Commerce Corporation 7,474,514

14

Airport Impact Aid 1,025,000

15

     Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be

16

distributed to each airport serving more than 1,000,000 passengers based upon its percentage of

17

the total passengers served by all airports serving more the 1,000,000 passengers. Forty percent

18

(40%) of the first $1,000,000 shall be distributed based on the share of landings during the

19

calendar year 2018 at North Central Airport, Newport-Middletown Airport, Block Island Airport,

20

Quonset Airport, T.F. Green Airport and Westerly Airport, respectively. The Rhode Island

21

Commerce Corporation shall make an impact payment to the towns or cities in which the airport

22

is located based on this calculation. Each community upon which any parts of the above airports

23

are located shall receive at least $25,000.

24

STAC Research Alliance 900,000

25

Innovative Matching Grants/Internships 1,000,000

26

I-195 Redevelopment District Commission 761,000

27

      Chafee Center at Bryant 376,200

28

      Polaris Manufacturing Grant 350,000

29

      Urban Ventures Grant 140,000

30

General Revenues Total 12,026,714

31

Other Funds

32

Rhode Island Capital Plan Funds

33

      I-195 Commission 300,000

34

      Quonset Piers 2,000,000

 

LC003937 - Page 8 of 402

1

      Quonset Point Infrastructure 4,000,000

2

Other Funds Total 6,300,000

3

Total – Quasi–Public Appropriations 18,326,714

4

Economic Development Initiatives Fund

5

General Revenues

6

Innovation Initiative 1,000,000

7

I-195 Redevelopment Fund 1,000,000

8

Small Business Assistance 500,000

9

Rebuild RI Tax Credit Fund 15,500,000

10

Competitive Cluster Grants 100,000

11

Main Street RI Streetscape 500,000

12

First Wave Closing Fund 1,000,000

13

P-tech 200,000

14

Municipal Technical Assistance 200,000

15

Land Assembly 200,000

16

Small Business Promotion 475,000

17

Manufacturing Investment Tax Credit 300,000

18

General Revenues Total 20,975,000

19

Total – Economic Development Initiatives Fund 20,975,000

20

Commerce Programs

21

General Revenues

22

Wavemaker Fellowship 1,600,000

23

Air Service Development Fund 500,000

24

TSA Incentive 20,000

25

General Revenues Total 2,120,000

26

Total – Commerce Programs 2,120,000

27

Grand Total - General Revenues - Commerce 37,314,974

28

Grand Total – Executive Office of Commerce 62,814,751

29

Labor and Training

30

Central Management

31

General Revenues 720,670

32

Restricted Receipts 176,511

33

Other Funds

34

Rhode Island Capital Plan Funds

 

LC003937 - Page 9 of 402

1

Center General Asset Protection 750,000

2

Other Funds Total 750,000

3

Total – Central Management 1,647,181

4

Workforce Development Services

5

General Revenues 1,577,198

6

Federal Funds 20,986,909

7

Restricted Receipts 27,940,577

8

Other Funds 139,261

9

Total – Workforce Development Services 50,643,945

10

Workforce Regulation and Safety

11

General Revenues 3,050,762

12

Restricted Receipts 558,142

13

Total – Workforce Regulation and Safety 3,608,904

14

Income Support

15

General Revenues 3,937,699

16

Federal Funds 19,921,142

17

Restricted Receipts 1,980,642

18

Other Funds

19

Temporary Disability Insurance Fund 203,411,107

20

Employment Security Fund 159,220,000

21

Other Funds Total 362,631,107

22

Total – Income Support 388,470,590

23

Injured Workers Services

24

Restricted Receipts 9,329,210

25

Total – Injured Workers Services 9,329,210

26

Labor Relations Board

27

General Revenues 404,420

28

Total – Labor Relations Board 404,420

29

Grand Total – General Revenues Labor and Training 9,690,749

30

Grand Total – Labor and Training 454,104,250

31

Department of Revenue

32

Director of Revenue

33

General Revenues 2,144,460

34

Total – Director of Revenue 2,144,460

 

LC003937 - Page 10 of 402

1

Office of Revenue Analysis

2

General Revenues 883,408

3

Total – Office of Revenue Analysis 883,408

4

Lottery Division

5

Other Funds 400,184,045

6

Total – Lottery Division 400,184,045

7

Municipal Finance

8

General Revenues 2,178,455

9

Total – Municipal Finance 2,178,455

10

Taxation

11

General Revenues 27,010,311

12

Federal Funds 1,912,976

13

Restricted Receipts 627,411

14

Other Funds

15

Motor Fuel Tax Evasion 173,651

16

Temporary Disability Insurance Fund 670,661

17

Other Funds Total 844,312

18

Total – Taxation 30,395,010

19

Registry of Motor Vehicles

20

General Revenues 29,613,674

21

Federal Funds 196,489

22

Restricted Receipts 514,763

23

Total – Registry of Motor Vehicles 30,324,926

24

State Aid

25

General Revenues

26

Distressed Communities Relief Fund 12,384,458

27

Payment in Lieu of Tax Exempt Properties 46,089,504

28

Motor Vehicle Excise Tax Payments 54,748,948

29

Property Revaluation Program 1,630,534

30

General Revenues Total 114,853,444

31

Restricted Receipts 922,013

32

Total – State Aid 115,775,457

33

Collections

34

General Revenues 591,609

 

LC003937 - Page 11 of 402

1

Total – Collections 591,609

2

Grand Total – General Revenues - Revenue 177,275,361

3

Grand Total – Revenue 582,477,370

4

Legislature

5

General Revenues 42,914,338

6

Restricted Receipts 1,720,695

7

Grand Total – Legislature 44,635,033

8

Lieutenant Governor

9

General Revenues 1,039,971

10

Grand Total – Lieutenant Governor 1,039,971

11

Secretary of State

12

Administration

13

General Revenues 3,377,583

14

Total – Administration 3,377,583

15

Corporations

16

General Revenues 2,287,410

17

Total – Corporations 2,287,410

18

State Archives

19

General Revenues 91,577

20

Restricted Receipts 415,658

21

Total – State Archives 507,235

22

Elections and Civics

23

General Revenues 2,881,418

24

Total – Elections and Civics 2,881,418

25

State Library

26

General Revenues 613,236

27

Total – State Library 613,236

28

     Provided that $125,000 be allocated to support the Rhode Island Historical Society

29

pursuant to Rhode Island General Law, Section 29-2-1 and $18,000 be allocated to support the

30

Newport Historical Society, pursuant to Rhode Island General Law, Section 29-2-2.

31

Office of Public Information

32

General Revenues 609,880

33

Receipted Receipts 25,000

34

Total – Office of Public Information 634,880

 

LC003937 - Page 12 of 402

1

Grand Total – General Revenues – Secretary of State 9,861,104

2

Grand Total – Secretary of State 10,301,762

3

General Treasurer

4

Treasury

5

General Revenues 2,684,347

6

Federal Funds 304,542

7

Other Funds

8

Temporary Disability Insurance Fund 275,471

9

Tuition Savings Program – Administration 379,213

10

Other Funds Total 654,684

11

Total – General Treasurer 3,643,573

12

State Retirement System

13

Restricted Receipts

14

Admin Expenses – State Retirement System 9,571,688

15

Retirement – Treasury Investment Operations 1,672,096

16

Defined Contribution – Administration 115,436

17

Total – State Retirement System 11,359,220

18

Unclaimed Property

19

Restricted Receipts 25,587,830

20

Total – Unclaimed Property 25,587,830

21

Crime Victim Compensation Program

22

General Revenues 283,285

23

Federal Funds 770,332

24

Restricted Receipts 1,029,931

25

Total – Crime Victim Compensation Program 2,083,548

26

Grand Total – General Revenues – General Treasurer 2,967,632

27

Grand Total – General Treasurer 42,674,171

28

Board of Elections

29

General Revenues 5,315,517

30

Grand Total – Board of Elections 5,315,517

31

Rhode Island Ethics Commission

32

General Revenues 1,770,560

33

Grand Total – Rhode Island Ethics Commission 1,770560

34

Office of Governor

 

LC003937 - Page 13 of 402

1

General Revenues

2

General Revenues 5,295,728

3

Contingency Fund 250,000

4

General Revenues Total 5,545,728

5

Grand Total – Office of Governor 5,545,728

6

Commission for Human Rights

7

General Revenues 1,310,456

8

Federal Funds 497,570

9

Grand Total – Commission for Human Rights 1,808,026

10

Public Utilities Commission

11

Federal Funds 168,378

12

Restricted Receipts 10,493,027

13

Grand Total – Public Utilities Commission 10,661,405

14

Office of Health and Human Services

15

Central Management

16

General Revenues 30,110,832

17

Federal Funds 100,927,845

18

Restricted Receipts 9,221,720

19

Total – Central Management 140,260,397

20

Medical Assistance

21

General Revenues

22

Managed Care 308,703,875

23

Hospitals 68,963,577

24

Nursing Facilities 88,251,917

25

Home and Community Based Services 22,943,006

26

Other Services 66,836,060

27

Pharmacy 63,486,039

28

Rhody Health 286,611,887

29

General Revenues Total 905,796,361

30

Federal Funds

31

Managed Care 397,005,513

32

Hospitals 74,564,167

33

Nursing Facilities 96,723,804

34

Home and Community Based Services 31,159,449

 

LC003937 - Page 14 of 402

1

Other Services 466,249,281

2

Pharmacy (1,086,369)

3

Rhody Health 312,283,711

4

Other Programs 43,038,580

5

Federal Funds Total 1,419,938,136

6

Restricted Receipts 11,274,268

7

Total – Medical Assistance 2,337,008,765

8

Grand Total – General Revenues - OHHS 935,907,193

9

Grand Total – Office of Health and Human Services 2,477,269,162

10

Children, Youth, and Families

11

Central Management

12

General Revenues 8,667,600

13

Federal Funds 4,407,612

14

Total – Central Management 13,075,212

15

Children's Behavioral Health Services

16

General Revenues 6,884,491

17

Federal Funds 5,713,527

18

Total – Children's Behavioral Health Services 12,598,018

19

Juvenile Correctional Services

20

General Revenues 25,645,396

21

Federal Funds 275,099

22

Other Funds

23

Rhode Island Capital Plan Funds

24

RITS Maintenance Building 1,900,000

25

Other Funds Total 1,900,000

26

Total – Juvenile Correctional Services 27,820,495

27

Child Welfare

28

General Revenues

29

General Revenues 95,941,301

30

18 to 21 Year Olds 11,298,418

31

General Revenue Total 107,239,719

32

Federal Funds

33

Federal Funds 43,308,780

34

18 to 21 Year Olds 2,235,633

 

LC003937 - Page 15 of 402

1

Federal Funds Total 45,544,413

2

Restricted Receipts 2,674,422

3

Total – Child Welfare 155,458,554

4

Higher Education Incentive Grants

5

General Revenues 200,000

6

Total – Higher Education Incentive Grants 200,000

7

Grand Total – General Revenues - DYCF 148,637,206

8

Grand Total – Children, Youth, and

9

Families 209,152,279

10

Health

11

Central Management

12

General Revenues 2,081,730

13

Federal Funds 4,028,206

14

Restricted Receipts 6,217,459

15

Total – Central Management 12,327,395

16

Community Health and Equity

17

General Revenues 631,894

18

Federal Funds 68,003,092

19

Restricted Receipts 35,134,450

20

      Total – Community Health and Equity 103,769,436

21

Environmental Health

22

General Revenues 5,591,236

23

Federal Funds 7,279,083

24

Restricted Receipts 353,936

25

Total – Environmental Health 13,224,255

26

Health Laboratories and Medical Examiner

27

General Revenues 10,302,526

28

Federal Funds 2,108,567

29

Total – Health Laboratories and Medical Examiner 12,411,093

30

Customer Services

31

General Revenues 6,428,386

32

Federal Funds 3,770,808

33

Restricted Receipts 1,325,336

34

Total – Customer Services 11,524,530

 

LC003937 - Page 16 of 402

1

Policy, Information and Communications

2

General Revenues 1,027,037

3

Federal Funds 2,701,982

4

Restricted Receipts 941,305

5

Total – Policy, Information and Communications 4,670,324

6

Preparedness, Response, Infectious Disease & Emergency Services

7

General Revenues 1,946,414

8

Federal Funds 13,418,085

9

Total – Preparedness, Response, Infectious Disease &

10

Emergency Services 15,364,499

11

Grand Total – General Revenues - Health 28,009,223

12

Grand Total - Health 173,291,532

13

Human Services

14

Central Management

15

General Revenues 3,931,863

16

     Of this amount, $300,000 is to support the Domestic Violence Prevention Fund to

17

provide direct services through the Coalition Against Domestic Violence, $250,000 is to support

18

Project Reach activities provided by the RI Alliance of Boys and Girls Club, $217,000 is for

19

outreach and supportive services through Day One, $175,000 is for food collection and

20

distribution through the Rhode Island Community Food Bank, $300,000 for services provided to

21

the homeless at Crossroad Rhode Island, and $520,000 for the Community Action Fund.

22

Federal Funds 4,841,578

23

Restricted Receipts 105,606

24

Total – Central Management 8,879,047

25

Child Support Enforcement

26

General Revenues 1,941,524

27

Federal Funds 8,050,859

28

Total – Child Support Enforcement 9,992,383

29

Individual and Family Support

30

General Revenues 22,214,417

31

Federal Funds 105,699,751

32

Restricted Receipts 7,422,660

33

Other Funds

34

Food Stamp Bonus Funding 170,000

 

LC003937 - Page 17 of 402

1

Intermodal Surface Transportation Fund 4,428,478

2

Rhode Island Capital Plan Funds

3

Blind Vending Facilities 165,000

4

Other Funds Total 4,763,478

5

Total – Individual and Family Support 140,100,306

6

Office of Veterans' Affairs

7

General Revenues 23,140,211

8

     Of this amount $200,000 to provide support services through Veteran’s organization.

9

Federal Funds 9,552,957

10

Restricted Receipts 1,313,478

11

Total – Office Veterans' Affairs 34,006,646

12

Health Care Eligibility

13

General Revenues 5,964,525

14

Federal Funds 9,392,121

15

Total – Health Care Eligibility 15,356,646

16

Supplemental Security Income Program

17

General Revenues 19,574,400

18

Total – Supplemental Security Income Program 19,574,400

19

Rhode Island Works

20

General Revenues 17,962,073

21

Federal Funds 84,029,810

22

Total – Rhode Island Works 101,991,883

23

Other Programs

24

General Revenues 1,336,400

25

     Of this appropriation, $90,000 shall be used for hardship contingency payments.

26

Federal Funds 282,130,537

27

Total – Other Programs 283,466,937

28

     Elderly Affairs

29

General Revenues 7,636,741

30

     Of this amount, $140,000 to provide elder services, including respite, through the

31

Diocese of Providence, $40,000 for ombudsman services provided by the Alliance for Long Term

32

in accordance with RIGL 42-66.7, $85,000 for security for housing for the elderly in accordance

33

with RIGL 42-66.1-3, $800,000 for Senior Center Support and $580,000 for elderly nutrition, of

34

which $530,000 is for Meals on Wheels.

 

LC003937 - Page 18 of 402

1

Federal Funds 12,664,605

2

Restricted Receipts 154,808

3

Total – Elderly Affairs 20,456,154

4

Grand Total – General Revenues – Human Services 103,702,154

5

Grand Total – Human Services 633,824,402

6

Behavioral Healthcare, Developmental Disabilities, and Hospitals

7

Central Management

8

General Revenues 1,940,068

9

Federal Funds 734,643

10

Total – Central Management 2,674,711

11

Hospital and Community System Support

12

General Revenues 2,569,849

13

Other Funds

14

Rhode Island Capital Plan Funds

15

Medical Center Rehabilitation 300,000

16

Other Funds Total 300,000

17

Total – Hospital and Community System Support 2,869,849

18

Services for the Developmentally Disabled

19

General Revenues 116,720,695

20

Federal Funds 131,367,987

21

Restricted Receipts 1,419,750

22

Other Funds

23

Rhode Island Capital Plan Funds

24

DD Private Waiver Fire Code 100,000

25

Regional Center Repair/Rehabilitation 300,000

26

Community Facilities Fire Code 400,000

27

MR Community Facilities/Access to Independence 500,000

28

Other Funds Total 1,300,000

29

Total – Services for the Developmentally Disabled 250,808,432

30

Behavioral Healthcare Services

31

General Revenues 3,552,823

32

Federal Funds 23,493,261

33

     Of this federal funding, $900,000 shall be expended on the Municipal Substance Abuse

34

Task Forces and $128,000 shall be expended on NAMI of RI.

 

LC003937 - Page 19 of 402

1

Restricted Receipts 100,000

2

Other Funds

3

Rhode Island Capital Plan Funds

4

MH Community Facilities Repair 200,000

5

Substance Abuse Asset Protection 200,000

6

Other Funds Total 400,000

7

Total – Behavioral Healthcare Services 27,546,084

8

Hospital and Community Rehabilitative Services

9

General Revenues 54,618,056

10

Federal Funds 57,374,123

11

Restricted Receipts 3,552,672

12

Other Funds

13

Rhode Island Capital Plan Funds

14

Zambarano Buildings and Utilities 250,000

15

Eleanor Slater HVAC/Elevators 250,000

16

MR Community Facilities 500,000

17

Hospital Equipment 300,000

18

Other Funds Total 1,300,000

19

Total - Hospital and Community Rehabilitative Services 116,844,851

20

Grand Total – General Revenues - BHDDH 179,401,491

21

Grand Total – Behavioral Healthcare, Developmental

22

Disabilities, and Hospitals 400,743,927

23

Office of the Child Advocate

24

General Revenue 923,704

25

Federal Funds 147,642

26

Grand Total – Office of the Child Advocate 1,071,346

27

Commission on the Deaf and Hard of Hearing

28

General Revenues 511,467

29

Restricted Receipts 80,000

30

Grand Total – Comm. On Deaf and Hard of Hearing 591,467

31

Governor’s Commission on Disabilities

32

General Revenues 492,557

33

Federal Funds 335,167

34

Restricted Receipts 49,571

 

LC003937 - Page 20 of 402

1

Total – Governor’s Commission on Disabilities 877,295

2

Office of the Mental Health Advocate

3

General Revenues 639,764

4

Grand Total – Office of the Mental Health Advocate 639,764

5

Elementary and Secondary Education

6

Administration of the Comprehensive Education Strategy

7

General Revenues 20,300,293

8

     Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s

9

Hospital pursuant to RIGL 17-7-20 and that $245,000 be allocated to support child opportunity

10

zones through agreements with the Department of Elementary and Secondary Education to

11

strengthen education, health and social services for students and their families as a strategy to

12

accelerate student achievement.

13

Federal Funds 212,575,621

14

Restricted Receipts

15

Restricted Receipts 2,633,393

16

HRIC Adult Education Grants 3,500,000

17

Restricted Receipts Total 6,133,393

18

Total – Admin. of the Comprehensive Ed. Strategy 239,009,307

19

Davies Career and Technical School

20

General Revenues 13,329,558

21

Federal Funds 1,344,928

22

Restricted Receipts 3,900,067

23

Other Funds

24

Rhode Island Capital Plan Funds

25

Davies HVAC 1,974,000

26

Davies Asset Protection 150,000

27

Other Funds Total 2,124,000

28

Total – Davies Career and Technical School 20,698,553

29

RI School for the Deaf

30

General Revenues 6,339,177

31

Federal Funds 554,925

32

Restricted Receipts 837,032

33

Other Funds

34

Transformation Grants 59,000

 

LC003937 - Page 21 of 402

1

Rhode Island Capital Plan Funds

2

Asset Protection 50,000

3

Other Funds Total 109,000

4

Total – RI School for the Deaf 7,840,134

5

Metropolitan Career and Technical School

6

General Revenues 9,342,007

7

Other Funds

8

Rhode Island Capital Plan Funds

9

MET Asset Protection 250,000

10

Other Funds Total 250,000

11

Total – Metropolitan Career and Technical School 9,592,007

12

Education Aid

13

General Revenues 902,925,515

14

Restricted Receipts 24,884,884

15

Other Funds

16

Permanent School Fund – Education Aid 1,420,000

17

     Provided that $300,000 be provided to support the Advanced Coursework Network and

18

$1,120,000 be provided to support Early Childhood Categorical Fund.

19

Total – Education Aid 929,230,399

20

Central Falls School District

21

General Revenues 40,397,886

22

Total – Central Falls School District 40,397,886

23

School Construction Aid

24

General Revenues

25

School Housing Aid 69,448,781

26

School Building Authority Fund 10,551,219

27

Total – School Construction Aid 80,000,000

28

Teachers' Retirement

29

General Revenues 107,118,409

30

Total – Teachers’ Retirement 107,118,409

31

Grand Total – General Revenues – Elementary &

32

Secondary Ed 1,179,752,845

33

Grand Total – Elementary and Secondary Education 1,433,886,695

34

Public Higher Education

 

LC003937 - Page 22 of 402

1

Office of the Postsecondary Commissioner

2

General Revenues 16,776,572

3

     Provided that $355,000 shall be allocated the Rhode Island College Crusade pursuant to

4

the RIGL 16-70-5 and that $30,000 shall be allocated to Best Buddies Rhode Island to support its

5

programs for children with developmental and intellectual disabilities. It is also provided that

6

$6,350,000 shall be allocated to the Rhode Island Promise Scholarship program.

7

Federal Funds

8

Federal Funds 3,524,589

9

Guaranty Agency Administration 2,259,418

10

Guaranty Agency Operating Fund-Scholarships & Grants 4,000,000

11

Federal Funds Total 9,784,007

12

Restricted Receipts 2,192,590

13

Other Funds

14

Tuition Savings Program – Dual Enrollment 1,800,000

15

Tuition Savings Program – Scholarships and Grants 6,095,000

16

Nursing Education Center – Operating 3,204,732

17

Rhode Island Capital Plan Funds

18

Higher Education Centers 2,000,000

19

Other Funds Total 13,099,732

20

Total – Office of the Postsecondary Commissioner 41,852,901

21

University of Rhode Island

22

General Revenues

23

General Revenues 78,110,451

24

     Provided that in order to leverage federal funding and support economic development,

25

$350,000 shall be allocated to the Small Business Development Center and that $50,000 shall be

26

allocated to Special Olympics Rhode Island to support its mission of providing athletic

27

opportunities for individuals with intellectual and developmental disabilities.

28

Debt Service 23,428,285

29

RI State Forensics Laboratory 1,264,277

30

General Revenues Total 102,803,013

31

Other Funds

32

University and College Funds 659,961,744

33

Debt – Dining Services 999,215

34

Debt – Education and General 3,776,722

 

LC003937 - Page 23 of 402

1

Debt – Health Services 121,190

2

Debt – Housing Loan Funds 9,454,613

3

Debt – Memorial Union 322,864

4

Debt – Ryan Center 2,388,444

5

Debt – Alton Jones Services 102,690

6

Debt – Parking Authority 1,100,172

7

Debt – Sponsored Research 85,151

8

Debt – Restricted Energy Conservation 482,579

9

Debt – URI Energy Conservation 2,008,847

10

Rhode Island Capital Plan Funds

11

Asset Protection 7,437,161

12

Fine Arts Center Renovation 1,000,000

13

Biological Resources Lab 762,839

14

Other Funds Total 690,004,231

15

Total – University of Rhode Island 792,807,244

16

Rhode Island College

17

General Revenues 49,188,791

18

Debt Service 6,421,067

19

General Revenues Total 55,609,858

20

Other Funds

21

University and College Funds 129,030,562

22

Debt – Education and General 881,090

23

Debt – Housing 369,079

24

Debt – Student Center and Dining 154,437

25

Debt – Student Union 208,800

26

Debt – G.O. Debt Service 1,642,957

27

Debt Energy Conservation 613,925

28

Rhode Island Capital Plan Funds

29

Asset Protection 3,562,184

30

Infrastructure Modernization 3,500,000

31

Academic Building Phase I 4,000,000

32

Master Plan Advanced Planning 150,000

33

Other Funds – Total 144,113,034

34

Total – Rhode Island College 199,722,892

 

LC003937 - Page 24 of 402

1

Community College of Rhode Island

2

General Revenues

3

General Revenues 50,935,710

4

Debt Service 1,904,030

5

General Revenues Total 52,839,740

6

Restricted Receipts 694,224

7

Other Funds

8

University and College Funds 104,812,712

9

CCRI Debt Service – Energy Conservation 803,875

10

Rhode Island Capital Plan Funds

11

Asset Protection 2,368,035

12

Knight Campus Lab Renovation 375,000

13

Knight Campus Renewal 3,000,000

14

Other Funds Total 111,359,622

15

Total – Community College of RI 164,893,586

16

Grand Total – General Revenues – Public Higher Ed 228,029,183

17

Grand Total – Public Higher Education 1,199,276,623

18

RI State Council on the Arts

19

General Revenues

20

Operating Support 824,693

21

Grants 1,165,000

22

     Provided that $375,000 be provided to support the operational costs of WaterFire

23

Providence art installations.

24

General Revenues Total 1,989,693

25

Federal Funds 719,053

26

Restricted Receipts 5,000

27

Other Funds

28

Art for Public Facilities 400,000

29

Other Funds Total 400,000

30

Grand Total – RI State Council on the Arts 3,113,746

31

RI Atomic Energy Commission

32

General Revenues 1,053,231

33

Restricted Receipts 99,000

34

Other Funds

 

LC003937 - Page 25 of 402

1

URI Sponsored Research 268,879

2

Rhode Island Capital Plan Funds

3

RINSC Asset Protection 50,000

4

Other Funds Total 318,879

5

Grand Total – RI Atomic Energy Commission 1,471,110

6

RI Historical Preservation and Heritage Commission

7

General Revenues 1,187,291

8

     Provided that $30,000 support the operational costs of the Fort Adam Trust’s restoration

9

activities.

10

Federal Funds 851,540

11

Restricted Receipts 465,870

12

Other Funds

13

RIDOT Project Review 81,589

14

Grand Total – RI Historical Preservation and Heritage Comm. 2,586,290

15

Attorney General

16

Criminal

17

General Revenues 16,833,871

18

Federal Funds 12,710,334

19

Restricted Receipts 139,107

20

Total – Criminal 29,683,312

21

Civil

22

General Revenues 5,366,089

23

Restricted Receipts 644,343

24

Total – Civil 6,010,432

25

Bureau of Criminal Identification

26

General Revenues 1,690,246

27

Total – Bureau of Criminal Identification 1,690,246

28

General

29

General Revenues 3,262,516

30

Other Funds

31

Rhode Island Capital Plan Funds

32

Building Renovations and Repairs 150,000

33

Other Funds Total 150,000

34

Total – General 3,412,516

 

LC003937 - Page 26 of 402

1

Grand Total – General Revenues – Attorney General 27,152,722

2

Grand Total – Attorney General 40,796,506

3

Corrections

4

Central Management

5

General Revenues 15,978,466

6

Federal Funds 29,460

7

      Total – Central Management 16,007,926

8

Parole Board

9

General Revenues 1,277,949

10

Federal Funds 120,827

11

Total – Parole Board 1,398,776

12

Custody and Security

13

General Revenues 146,468,840

14

Federal Funds 810,693

15

Total – Custody and Security 147,279,533

16

Institutional Support

17

General Revenues 14,449,266

18

Other Funds

19

Rhode Island Capital Plan Funds

20

Asset Protection 3,000,000

21

Maximum – General Renovations 1,000,000

22

General Renovations Women’s 250,000

23

ISC Exterior Envelope and HVAC 1,500,000

24

Medium Infrastructure 5,000,000

25

High Security Renovations and Repairs 1,000,000

26

Other Funds Total 11,750,000

27

Total – Institutional Support 26,199,266

28

Institutional Based Rehab./Population Management

29

General Revenues 13,660,141

30

     Provided that $1,050,000 be allocated to Crossroads Rhode Island for sex offender

31

discharge planning.

32

Federal Funds 545,886

33

Restricted Receipts 44,473

34

Total – Institutional Based Rehab/Population Mgt. 14,250,500

 

LC003937 - Page 27 of 402

1

Healthcare Services

2

General Revenues 23,906,188

3

Total – Healthcare Services 23,906,188

4

Community Corrections

5

General Revenues 17,281,996

6

Federal Funds 84,437

7

Restricted Receipts 14,883

8

Total – Community Corrections 17,381,316

9

Grand Total – General Revenues - Corrections 233,022,846

10

Grand Total – Corrections 246,423,505

11

Judiciary

12

Supreme Court

13

General Revenues

14

General Revenues 28,632,746

15

     Provided however, that no more than $1,183,205 in combined total shall be offset to the

16

Public Defender’s Office, the Attorney General’s Office, the Department of Corrections, the

17

Department of Children, Youth, and Families, and the Department of Public Safety for square-

18

footage occupancy costs in public courthouses and further provided that $230,000 be allocated to

19

the Rhode Island Coalition Against Domestic Violence for the domestic abuse court advocacy

20

project pursuant to RIGL 12-29-7 and that $90,000 be allocated to Rhode Island Legal Services,

21

Inc. to provide housing and eviction defense to indigent individuals.

22

Defense of Indigents 3,960,979

23

General Revenues Total 32,593,725

24

Federal Funds 139,008

25

Restricted Receipts 3,317,943

26

Other Funds

27

Rhode Island Capital Plan Funds

28

Judicial Complexes - HVAC 1,000,000

29

Judicial Complexes Asset Protection 950,000

30

Licht Judicial Complex Restoration 750,000

31

Licht Window/Exterior Restoration 800,000

32

Noel Shelled Courtroom Build Out 2,339,066

33

Other Funds Total 5,839,066

34

Total - Supreme Court 41,889,742

 

LC003937 - Page 28 of 402

1

Judicial Tenure and Discipline

2

General Revenues 147,386

3

Total – Judicial Tenure and Discipline 147,386

4

Superior Court

5

General Revenues 23,552,251

6

Federal Funds 71,376

7

Restricted Receipts 398,089

8

Total – Superior Court 24,021,716

9

Family Court

10

General Revenues 20,897,566

11

Federal Funds 2,577,195

12

Total – Family Court 23,474,761

13

District Court

14

General Revenues 13,420,987

15

Federal Funds 65

16

Restricted Receipts 60,000

17

Total - District Court 13,481,052

18

Traffic Tribunal

19

General Revenues 9,571,159

20

Total – Traffic Tribunal 9,571,159

21

Workers' Compensation Court

22

Restricted Receipts 8,309,954

23

Total – Workers’ Compensation Court 8,309,954

24

Grand Total – General Revenues - Judiciary 100,183,074

25

Grand Total – Judiciary 120,895,770

26

Military Staff

27

General Revenues 3,674,200

28

Federal Funds 18,480,072

29

Restricted Receipts

30

RI Military Family Relief Fund 100,000

31

Restricted Receipts Total 100,000

32

Other Funds

33

Rhode Island Capital Plan Funds

34

Asset Protection 700,000

 

LC003937 - Page 29 of 402

1

Joint Force Headquarters Building 4,706,152

2

Other Funds Total 5,406,152

3

Grand Total – General Revenue 3,674,200

4

Grand Total – Military Staff 27,660,424

5

Public Safety

6

Central Management

7

General Revenues 1,189,025

8

Federal Funds 6,714,457

9

Total – Central Management 7,903,482

10

E-911 Emergency Telephone System

11

General Revenues 5,899,730

12

Total – E-911 Emergency Telephone System 5,899,730

13

Security Services

14

General Revenues 24,475,859

15

Total – Security Services 24,475,859

16

Municipal Police Training Academy

17

Federal Funds 372,958

18

Restricted Receipts 253,024

19

Total – Municipal Police Training Academy 625,982

20

State Police

21

General Revenues 69,999,344

22

Federal Funds 8,526,488

23

Restricted Receipts 552,603

24

Other Funds

25

Rhode Island Capital Plan Fund

26

DPS Asset Protection 250,000

27

Training Academy Upgrades 500,000

28

Three-bay Garage 100,000

29

Facilities Master Plan 100,000

30

Lottery Commission Assistance 1,494,883

31

Airport Corporation Assistance 149,811

32

Road Construction Reimbursement 2,201,511

33

Weight and Measurement Reimbursement 304,989

34

Other Funds Total 5,101,194

 

LC003937 - Page 30 of 402

1

Total – State Police 84,179,629

2

Grand Total – General Revenue – Public Safety 101,563,958

3

Grand Total – Public Safety 123,084,682

4

Office of Public Defender

5

General Revenues 12,300,887

6

Federal Funds 100,985

7

Grand Total – Office of Public Defender 12,401,872

8

Emergency Management Agency

9

General Revenues 2,108,891

10

Federal Funds 16,335,897

11

Restricted Receipts 450,985

12

Other Funds

13

Rhode Island Capital Plan Fund

14

RI State Communications Network System 1,494,414

15

Other Funds Total 1,494,414

16

Total – Emergency Management Agency 20,390,187

17

Environmental Management

18

Office of the Director

19

General Revenues 6,951,291

20

Of this general revenue amount, $50,000 is appropriated to the Conservation Districts.

21

Federal Funds 212,741

22

Restricted Receipts 3,840,985

23

Total – Office of the Director 11,005,017

24

Natural Resources

25

General Revenues 21,782,910

26

Federal Funds 21,587,314

27

Restricted Receipts 3,993,561

28

Other Funds

29

DOT Recreational Projects 2,339,312

30

Blackstone Bikepath Design 2,075,848

31

Transportation MOU 84,527

32

Rhode Island Capital Plan Funds

33

Recreational Facilities Improvements 1,600,000

34

Galilee Piers Upgrade 1,250,000

 

LC003937 - Page 31 of 402

1

Fish & Wildlife Maintenance Facilities 150,000

2

Natural Resources Offices/Visitor’s Center 4,500,000

3

Marine Infrastructure and Pier Development 750,000

4

State Recreation Building Demolition 100,000

5

Other Funds Total 12,849,687

6

Total – Natural Resources 60,213,472

7

Environmental Protection

8

General Revenues 12,488,519

9

Federal Funds 9,963,105

10

Restricted Receipts 9,745,745

11

Other Funds

12

Transportation MOU 55,154

13

Total – Environmental Protection 32,252,523

14

Grand Total – General Revenues – Environmental Mgmt 41,222,720

15

Grand Total – Environmental Management 103,471,012

16

Coastal Resources Management Council

17

General Revenues 2,597,897

18

Federal Funds 2,733,267

19

Restricted Receipts 250,000

20

      Other Funds

21

      Rhode Island Capital Plan Funds

22

      Rhode Island Coastal Storm Risk Study 525,000

23

      Narragansett Bay SAMP 150,000

24

      Other Funds Total 675,000

25

      Grand Total – Coastal Resources Mgmt. Council 6,256,164

26

Transportation

27

Central Management

28

     Federal Funds 6,503,262

29

     Other Funds

30

     Gasoline Tax 4,840,141

31

     Other Funds Total 4,840,141

32

     Total – Central Management 11,343,403

33

Management and Budget

34

      Other Funds

 

LC003937 - Page 32 of 402

1

      Gasoline Tax 5,282,202

2

      Other Funds Total 5,282,202

3

      Total – Management and Budget 5,282,202

4

Infrastructure Engineering

5

      Federal Funds

6

      Federal Funds 281,125,305

7

      Federal Funds – Stimulus 4,386,593

8

      Federal Funds Total 285,511,898

9

      Restricted Receipts 3,034,406

10

      Other Funds

11

      Gasoline Tax 75,322,045

12

      Toll Revenue 41,000,000

13

      Land Sale Revenue 2,647,815

14

      Rhode Island Capital Plan Funds

15

      RIPTA Land and Buildings 90,000

16

      RIPTA Pawtucket Bus Hub 946,168

17

      RIPTA Providence Transit Connector 1,561,279

18

      Highway Improvement Program 35,851,346

19

      Other Funds Total 157,418,653

20

      Total - Infrastructure Engineering 445,964,957

21

Infrastructure Maintenance

22

      Other Funds

23

      Gasoline Tax 18,811,422

24

      Non-Land Surplus Property 50,000

25

      Outdoor Advertising 100,000

26

      Utility Access Permit Fees 500,000

27

      Rhode Island Highway Maintenance Account 97,007,238

28

      Rhode Island Capital Plan Funds Maintenance Facilities

29

      Improvements 523,989

30

      Salt Storage Facilities 1,000,000

31

      Local Roads and Infrastructure 10,000,000

32

      Maintenance - Equipment Replacement 1,500,000

33

      Train Station Maintenance and Repairs 350,000

34

      Other Funds Total 129,842,649

 

LC003937 - Page 33 of 402

1

      Total – Infrastructure Maintenance 129,842,649

2

      Grand Total – Transportation 592,433,211

3

Statewide Totals

4

General Revenues 3,829,280,172

5

Federal Funds 3,091,874,325

6

Restricted Receipts 285,475,852

7

Other Funds 2,171,110,921

8

Statewide Grand Total 9,377,741,270

9

     SECTION 2. Each line appearing in Section 1 of this Article shall constitute an

10

appropriation.

11

     SECTION 3. Upon the transfer of any function of a department or agency to another

12

department or agency, the Governor is hereby authorized by means of executive order to transfer

13

or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected

14

thereby.

15

     SECTION 4. From the appropriation for contingency shall be paid such sums as may be

16

required at the discretion of the Governor to fund expenditures for which appropriations may not

17

exist. Such contingency funds may also be used for expenditures in the several departments and

18

agencies where appropriations are insufficient, or where such requirements are due to unforeseen

19

conditions or are non-recurring items of an unusual nature. Said appropriations may also be used

20

for the payment of bills incurred due to emergencies or to any offense against public peace and

21

property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as

22

amended. All expenditures and transfers from this account shall be approved by the Governor.

23

     SECTION 5. The general assembly authorizes the state controller to establish the internal

24

service accounts shown below, and no other, to finance and account for the operations of state

25

agencies that provide services to other agencies, institutions and other governmental units on a

26

cost reimbursed basis. The purpose of these accounts is to ensure that certain activities are

27

managed in a businesslike manner, promote efficient use of services by making agencies pay the

28

full costs associated with providing the services, and allocate the costs of central administrative

29

services across all fund types, so that federal and other non-general fund programs share in the

30

costs of general government support. The controller is authorized to reimburse these accounts for

31

the cost of work or services performed for any other department or agency subject to the

32

following expenditure limitations:

33

     Account Expenditure Limit

34

     State Assessed Fringe Benefit Internal Service Fund 41,383,271

 

LC003937 - Page 34 of 402

1

     Administration Central Utilities Internal Service Fund 22,910,320

2

     State Central Mail Internal Service Fund 6,539,120

3

     State Telecommunications Internal Service Fund 3,602,419

4

     State Automotive Fleet Internal Service Fund 12,549,973

5

     Surplus Property Internal Service Fund 3,000

6

     Health Insurance Internal Service Fund 251,953,418

7

     State Fleet Revolving Loan Fund 273,786

8

     Other Post-Employment Benefits Fund 63,858,483

9

     Capitol Police Internal Service Fund 1,285,206

10

     Corrections Central Distribution Center Internal Service Fund 6,769,493

11

     Correctional Industries Internal Service Fund 8,050,590

12

     Secretary of State Record Center Internal Service Fund 947,539

13

     Human Resources Internal Service Fund 12,127,873

14

     DCAMM Facilities Internal Service Fund 39,212,184

15

     Information Technology Internal Service Fund 32,281,052

16

     SECTION 6. Legislative Intent - The General Assembly may provide a written

17

"statement of legislative intent" signed by the chairperson of the House Finance Committee and

18

by the chairperson of the Senate Finance Committee to show the intended purpose of the

19

appropriations contained in Section 1 of this Article. The statement of legislative intent shall be

20

kept on file in the House Finance Committee and in the Senate Finance Committee.

21

     At least twenty (20) days prior to the issuance of a grant or the release of funds, which

22

grant or funds are listed on the legislative letter of intent, all department, agency and corporation

23

directors, shall notify in writing the chairperson of the House Finance Committee and the

24

chairperson of the Senate Finance Committee of the approximate date when the funds are to be

25

released or granted.

26

     SECTION 7. Appropriation of Temporary Disability Insurance Funds -- There is hereby

27

appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island General Laws all

28

funds required to be disbursed for the benefit payments from the Temporary Disability Insurance

29

Fund and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2019.

30

     SECTION 8. Appropriation of Employment Security Funds -- There is hereby

31

appropriated pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to

32

be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending

33

June 30, 2019.

34

     SECTION 9. Appropriation of Lottery Division Funds -- There is hereby appropriated to

 

LC003937 - Page 35 of 402

1

the Lottery Division any funds required to be disbursed by the Lottery Division for the purposes

2

of paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2019.

3

     SECTION 10. Appropriation of CollegeBoundSaver Funds – There is hereby

4

appropriated to the Office of the General Treasurer designated funds received under the

5

CollegeBoundSaver program for transfer to the Division of Higher Education Assistance within

6

the Office of the Postsecondary Commissioner to support student financial aid for the fiscal year

7

ending June 30, 2019.

8

     SECTION 11. Departments and agencies listed below may not exceed the number of full-

9

time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do

10

not include seasonal or intermittent positions whose scheduled period of employment does not

11

exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and

12

twenty-five (925) hours, excluding overtime, in a one-year period. Nor do they include

13

individuals engaged in training, the completion of which is a prerequisite of employment.

14

Provided, however, that the Governor or designee, Speaker of the House of Representatives or

15

designee, and the President of the Senate or designee may authorize an adjustment to any

16

limitation. Prior to the authorization, the State Budget Officer shall make a detailed written

17

recommendation to the Governor, the Speaker of the House, and the President of the Senate. A

18

copy of the recommendation and authorization to adjust shall be transmitted to the chairman of

19

the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the

20

Senate Fiscal Advisor.

21

     State employees whose funding is from non-state general revenue funds that are time

22

limited shall receive limited term appointment with the term limited to the availability of non-

23

state general revenue funding source.

24

FY 2019 FTE POSITION AUTHORIZATION

25

     Departments and Agencies Full-Time Equivalent

26

     Administration 667.7

27

     Business Regulation 170.0

28

     Executive Office of Commerce 17.0

29

     Labor and Training 428.7

30

     Revenue 612.5

31

     Legislature 298.5

32

     Office of the Lieutenant Governor 8.0

33

     Office of the Secretary of State 59.0

34

     Office of the General Treasurer 89.0

 

LC003937 - Page 36 of 402

1

     Board of Elections 12.0

2

     Rhode Island Ethics Commission 12.0

3

     Office of the Governor 45.0

4

     Commission for Human Rights 14.5

5

     Public Utilities Commission 57.0

6

     Office of Health and Human Services 295.0

7

     Children, Youth, and Families 619.5

8

     Health 504.6

9

     Human Services 981.1

10

     Behavioral Healthcare, Developmental Disabilities, and Hospitals 1,319.4

11

     Office of the Child Advocate 8.6

12

     Commission on the Deaf and Hard of Hearing 4.0

13

     Governor’s Commission on Disabilities 4.0

14

     Office of the Mental Health Advocate 4.0

15

     Elementary and Secondary Education 141.1

16

     School for the Deaf 60.0

17

     Davies Career and Technical School 126.0

18

     Office of Postsecondary Commissioner 38.0

19

     Provided that 1.0 of the total authorization would be available only for positions that are

20

supported by third-party funds.

21

     University of Rhode Island 2,558.0

22

     Provided that 622.8 of the total authorization would be available only for positions that

23

are supported by third-party funds.

24

     Rhode Island College 949.2

25

     Provided that 76.0 of the total authorization would be available only for positions that are

26

supported by third-party funds.

27

     Community College of Rhode Island 854.1

28

     Provided that 89.0 of the total authorization would be available only for positions that are

29

supported by third-party funds.

30

     Rhode Island State Council on the Arts 8.6

31

     RI Atomic Energy Commission 8.6

32

     Historical Preservation and Heritage Commission 15.6

33

     Office of the Attorney General 235.1

34

     Corrections 1,435.0

 

LC003937 - Page 37 of 402

1

     Judicial 723.5

2

     Military Staff 92.0

3

     Emergency Management Agency 32.0

4

     Public Safety 599.6

5

     Office of the Public Defender 95.0

6

     Environmental Management 400.0

7

     Coastal Resources Management Council 29.0

8

     Transportation 795.0

9

Total 15,426.3

10

     SECTION 12. The amounts reflected in this Article include the appropriation of Rhode

11

Island Capital Plan funds for fiscal year 2019 and supersede appropriations provided for FY 2019

12

within Section 11 of Article 1 of Chapter 302 of the P.L. of 2017.

13

     The following amounts are hereby appropriated out of any money in the State’s Rhode

14

Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending

15

June 30, 2020, June 30, 2021, June 30, 2022, and June 30, 2023. These amounts supersede

16

appropriations provided within Section 11 of Article 1 of Chapter 302 of the P.L. of 2017. For the

17

purposes and functions hereinafter mentioned, the State Controller is hereby authorized and

18

directed to draw his or her orders upon the General Treasurer for the payment of such sums and

19

such portions thereof as may be required by him or her upon receipt of properly authenticated

20

vouchers.

21

Fiscal Year Fiscal Year Fiscal Year Fiscal Year

22

Ending Ending Ending Ending

23

Project June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023

24

DOA – Accessibility 500,000 500,000 1,000,000 1,000,000

25

DOA – Board of Elections/Health/ME Lab 8,000,000 0 0 0

26

DOA – Cannon Building 350,000 3,000,000 3,000,000 1,000,000

27

DOA – Cranston Street Armory 500,000 500,000 2,000,000 3,000,000

28

DOA – Energy Efficiency 500,000 500,000 1,000,000 1,000,000

29

DOA – Hospital Reorganization 4,125,000 0 0 0

30

DOA – Pastore Center Rehab 2,000,000 3,000,000 4,000,000 4,100,000

31

DOA – Security Measures/State

32

Buildings 250,000 250,000 250,000 250,000

33

DOA – Shepard Building 750,000 750,000 750,000 750,000

34

DOA – State House Renovations 1,000,000 500,000 500,000 1,500,000

 

LC003937 - Page 38 of 402

1

DOA – State Office Building 1,000,000 1,000,000 1,000,000 1,000,000

2

DOA – Washington County Gov. Center 1,000,000 2,000,000 3,000,000 0

3

DOA – Williams Powers Bldg. 2,000,000 2,000,000 2,250,000 2,250,000

4

DOA – Zambarano Utilities and Mtn. 1,500,000 2,300,000 2,300,000 0

5

EOC – Quonset Point/Davisville Pier 5,000,000 5,000,000 0 0

6

EOC – Quonset Point/EB Pier 4,000,000 6,000,000 0 0

7

DCYF – RITS Repairs 1,700,000 200,000 200,000 200,000

8

EL SEC – Davies School Asset Protection 150,000 150,000 150,000 150,000

9

EL SEC – Met School Asset Protection 250,000 250,000 250,000 250,000

10

OPC- Higher Education Centers 2,000,000 0 0 0

11

URI – Asset Protection 8,326,839 8,531,280 8,700,000 8,874,000

12

URI – Fine Arts Center Renovation 2,000,000 5,000,000 3,000,000 0

13

RIC – Asset Protection 3,669,050 4,150,000 4,233,000 4,318,000

14

RIC – Infrastructure Modernization 3,000,000 3,500,000 4,500,000 2,000,000

15

RIC – Academic Building Phase I 2,000,000 0 0 0

16

CCRI – Asset Protection 2,439,076 2,487,857 2,537,615 2,588,000

17

CCRI – Knight Campus Renewal 2,000,000 2,000,000 0 0

18

CCRI – Flanagan Campus Renewal 0 2,000,000 2,000,000 6,000,000

19

DOC – Asset Protection 3,000,000 3,000,000 4,000,000 4,000,000

20

DOC – ISC Envelope and HVAC 1,500,000 1,550,000 2,000,000 2,500,000

21

DOC – Medium Infrastructure 5,000,000 3,000,000 5,000,000 5,000,000

22

Military Staff Asset Protection 700,000 700,000 800,000 800,000

23

DPS Asset Protection 250,000 250,000 250,000 250,000

24

DEM – Marine Infrastructure/

25

Pier Development 750,000 1,000,000 1,250,000 1,250,000

26

DOT – Highway Improvement Program 32,451,346 32,451,346 32,451,346 27,200,000

27

DOT – Capital Equipment Replacement 1,500,000 1,500,000 1,500,000 1,500,000

28

DOT – Maintenance Facility Imp. 400,000 400,000 400,000 500,000

29

     SECTION 13. Reappropriation of Funding for Rhode Island Capital Plan Fund Projects.

30

– Any unexpended and unencumbered funds from Rhode Island Capital Plan Fund project

31

appropriations may be reappropriated at the recommendation of the Governor in the ensuing

32

fiscal year and made available for the same purpose. However, any such reappropriations are

33

subject to final approval by the General Assembly as part of the supplemental appropriations act.

34

Any unexpended funds of less than five hundred dollars ($500) shall be reappropriated at the

 

LC003937 - Page 39 of 402

1

discretion of the State Budget Officer.

2

     SECTION 14. For the Fiscal Year ending June 30, 2019, the Rhode Island Housing and

3

Mortgage Finance Corporation shall provide from its resources such sums as appropriate in

4

support of the Neighborhood Opportunities Program. The Corporation shall provide a report

5

detailing the amount of funding provided to this program, as well as information on the number

6

of units of housing provided as a result to the Director of Administration, the Chair of the

7

Housing Resources Commission, the Chair of the House Finance Committee, the Chair of the

8

Senate Finance Committee and the State Budget Officer.

9

     SECTION 15. Notwithstanding any provisions of Chapter 19 in Title 23 of the Rhode

10

Island General Laws, the Resource Recovery Corporation shall transfer to the State Controller the

11

sum of three million dollars ($3,000,000) by June 30, 2019.

12

     SECTION 16. Notwithstanding any provisions of Chapter 55 in Title 42 of the Rhode

13

Island General Laws, the Rhode Island Housing and Mortgage Finance Corporation shall transfer

14

to the State Controller the sum of five million dollars ($5,000,000) by June 30, 2019.

15

     SECTION 17. This article shall take effect as of July 1, 2018.

16

ARTICLE 2

17

RELATING TO STATE FUNDS

18

     SECTION 1. Section 16-59-9 of the General Laws in Chapter 16-59 entitled “Board of

19

Governors for Higher Education [See Title 16 Chapter 97 – The Rhode Island Board of Education

20

Act]” is hereby amended to read as follows:

21

     16-59-9. Educational budget and appropriations.

22

     (a) The general assembly shall annually appropriate any sums it deems necessary for

23

support and maintenance of higher education in the state and the state controller is authorized and

24

directed to draw his or her orders upon the general treasurer for the payment of the appropriations

25

or so much of the sums that are necessary for the purposes appropriated, upon the receipt by him

26

or her of proper vouchers as the council on postsecondary education may by rule provide. The

27

council shall receive, review, and adjust the budget for the office of postsecondary commissioner

28

and present the budget as part of the budget for higher education under the requirements of § 35-

29

3-4.

30

     (b) The office of postsecondary commissioner and the institutions of public higher

31

education shall establish working capital accounts.

32

     (c) Any tuition or fee increase schedules in effect for the institutions of public higher

33

education shall be received by the council on postsecondary education for allocation for the fiscal

34

year for which state appropriations are made to the council by the general assembly; provided that

 

LC003937 - Page 40 of 402

1

no further increases may be made by the board of education or the council on postsecondary

2

education for the year for which appropriations are made. Except that these provisions shall not

3

apply to the revenues of housing, dining, and other auxiliary facilities at the university of Rhode

4

Island, Rhode Island college, and the community colleges including student fees as described in

5

P.L. 1962, ch. 257 pledged to secure indebtedness issued at any time pursuant to P.L. 1962, ch.

6

257 as amended.

7

     (d) All housing, dining, and other auxiliary facilities at all public institutions of higher

8

learning shall be self-supporting and no funds shall be appropriated by the general assembly to

9

pay operating expenses, including principal and interest on debt services, and overhead expenses

10

for the facilities, with the exception of the mandatory fees covered by the Rhode Island promise

11

scholarship program as established by § 16-107-3. Any debt-service costs on general obligation

12

bonds presented to the voters in November 2000 and November 2004 or appropriated funds from

13

the Rhode Island capital plan for the housing auxiliaries at the university of Rhode Island and

14

Rhode Island college shall not be subject to this self-supporting requirement in order to provide

15

funds for the building construction and rehabilitation program. The institutions of public higher

16

education will establish policies and procedures that enhance the opportunity for auxiliary

17

facilities to be self-supporting, including that all faculty provide timely and accurate copies of

18

booklists for required textbooks to the public higher educational institution's bookstore.

19

     (e) The additional costs to achieve self-supporting status shall be by the implementation

20

of a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,

21

operating expenses, principal, and interest on debt services, and overhead expenses.

22

     (f) The board of education is authorized to establish a restricted-receipt account for the

23

Westerly Higher Education and Industry Centers established throughout the state (also known as

24

the Westerly Job Skills Center or Westerly Higher Education Learning Center) and to collect

25

lease payments from occupying companies, and fees from room and service rentals, to support the

26

operation and maintenance of the facility facilities. All such revenues shall be deposited to the

27

restricted-receipt account.

28

     SECTION 2. Section 35-3-15 of the General Laws in Chapter 35-3 entitled “State

29

Budget” is hereby amended to read as follows:

30

     35-3-15. Unexpended and unencumbered balances of revenue appropriations.

31

     (a) All unexpended or unencumbered balances of general revenue appropriations,

32

whether regular or special appropriations, at the end of any fiscal year, shall revert to the surplus

33

account in the general fund, and may be reappropriated by the governor to the ensuing fiscal year

34

and made immediately available for the same purposes as the former appropriations; provided,

 

LC003937 - Page 41 of 402

1

that the disposition of unexpended or unencumbered appropriations for the general assembly and

2

legislative agencies shall be determined by the joint committee on legislative affairs, and written

3

notification given thereof to the state controller within twenty (20) days after the end of the fiscal

4

year; and furthermore that the disposition of unexpended or unencumbered appropriations for the

5

judiciary, shall be determined by the state court administrator, and written notification given

6

thereof to the state controller within twenty (20) days after the end of the fiscal year.

7

     (b) The governor shall submit a report of such reappropriations to the chairperson of the

8

house finance committee and the chairperson of the senate finance committee of each

9

reappropriation stating the general revenue appropriation, the unexpended or unencumbered

10

balance, the amount reappropriated, and an explanation of the reappropriation and the reason for

11

the reappropriation by August 15 September 1 of each year.

12

     SECTION 3. Sections 35-4-23 and 35-4-27 of the General Laws in Chapter 35-4 entitled

13

“State Funds” is hereby amended to read as follows:

14

     35-4-23. Rhode Island capital plan funds.

15

     (a) From the proceeds of any receipts transferred pursuant to the provisions of the Rhode

16

Island Constitution, the state controller is authorized to create an account or accounts within the

17

bond capital fund. These accounts shall be used to record expenditures from these receipts, which

18

are authorized to be spent with the approval of the governor. Certain of these funds may be

19

allocated to agencies for the purpose of completing preliminary planning studies for proposed

20

projects. In the event the project is completed with funds appropriated from another source, the

21

preliminary planning funds shall be returned to the bond capital fund and shall be placed in a

22

revolving account for future reallocation. The intended use of the Rhode Island capital plan funds

23

shall be determined through the annual capital and operating budget process.

24

     (b) The budget officer under provisions within § 35-3-7.2. “Budget officer as capital

25

development officer” shall implement an indirect cost not to exceed 10% of the project

26

expenditures for the purpose of funding direct project management costs of state employees.

27

     35-4-27. Indirect cost recoveries on restricted receipt accounts.

28

     Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all

29

restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there

30

shall be no transfer from cash receipts with restrictions received exclusively: (1) From

31

contributions from non-profit charitable organizations; (2) From the assessment of indirect cost-

32

recovery rates on federal grant funds; or (3) Through transfers from state agencies to the

33

department of administration for the payment of debt service. These indirect cost recoveries shall

34

be applied to all accounts, unless prohibited by federal law or regulation, court order, or court

 

LC003937 - Page 42 of 402

1

settlement. The following restricted receipt accounts shall not be subject to the provisions of this

2

section:

3

     Executive Office of Health and Human Services

4

     Organ Transplant Fund

5

     HIV Care Grant Drug Rebates

6

     Department of Human Services

7

     Veterans' home – Restricted account

8

     Veterans' home – Resident benefits

9

     Pharmaceutical Rebates Account

10

     Demand Side Management Grants

11

     Veteran's Cemetery Memorial Fund

12

     Donations – New Veterans' Home Construction

13

     Department of Health

14

     Pandemic medications and equipment account

15

     Miscellaneous Donations/Grants from Non-Profits

16

     State Loan Repayment Match

17

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

18

     Eleanor Slater non-Medicaid third-party payor account

19

     Hospital Medicare Part D Receipts

20

     RICLAS Group Home Operations

21

     Commission on the Deaf and Hard of Hearing

22

     Emergency and public communication access account

23

     Department of Environmental Management

24

     National heritage revolving fund

25

     Environmental response fund II

26

     Underground storage tanks registration fees

27

     Rhode Island Historical Preservation and Heritage Commission

28

     Historic preservation revolving loan fund

29

     Historic Preservation loan fund – Interest revenue

30

     Department of Public Safety

31

     Forfeited property – Retained

32

     Forfeitures – Federal

33

     Forfeited property – Gambling

34

     Donation – Polygraph and Law Enforcement Training

 

LC003937 - Page 43 of 402

1

     Rhode Island State Firefighter's League Training Account

2

     Fire Academy Training Fees Account

3

     Municipal Police Training Tuition and Fees

4

     Attorney General

5

     Forfeiture of property

6

     Federal forfeitures

7

     Attorney General multi-state account

8

     Forfeited property – Gambling

9

     Department of Administration

10

     OER Reconciliation Funding

11

     RI Health Benefits Exchange

12

     Information Technology Investment Fund

13

     Restore and replacement – Insurance coverage

14

     Convention Center Authority rental payments

15

     Investment Receipts – TANS

16

     OPEB System Restricted Receipt Account

17

     Car Rental Tax/Surcharge-Warwick Share

18

     Executive Office of Commerce

19

     Housing Resources Commission Restricted Account

20

     Department of Revenue

21

     DMV Modernization Project

22

     Jobs Tax Credit Redemption Fund

23

     Legislature

24

     Audit of federal assisted programs

25

     Department of Children, Youth and Families

26

     Children's Trust Accounts – SSI

27

     Military Staff

28

     RI Military Family Relief Fund

29

     RI National Guard Counterdrug Program

30

     Treasury

31

     Admin. Expenses – State Retirement System

32

     Retirement – Treasury Investment Options

33

     Defined Contribution – Administration - RR

34

     Violent Crimes Compensation – Refunds

 

LC003937 - Page 44 of 402

1

     Treasury Research Fellowship

2

     Business Regulation

3

     Banking Division Reimbursement Account

4

     Office of the Health Insurance Commissioner Reimbursement Account

5

     Securities Division Reimbursement Account

6

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

7

     Insurance Division Reimbursement Account

8

     Historic Preservation Tax Credit Account

9

     Judiciary

10

     Arbitration Fund Restricted Receipt Account

11

     Third-Party Grants

12

     RI Judiciary Technology Surcharge Account

13

     Department of Elementary and Secondary Education

14

     Statewide Student Transportation Services Account

15

     School for the Deaf Fee-for-Service Account

16

     School for the Deaf – School Breakfast and Lunch Program

17

     Davies Career and Technical School Local Education Aid Account

18

     Davies – National School Breakfast & Lunch Program

19

     School Construction Services

20

     Office of the Postsecondary Commissioner

21

     Westerly Higher Education and Industry Centers

22

     Department of Labor and Training

23

     Job Development Fund

24

     SECTION 4. Section 42-27-6 of the General Laws in Chapter 42-27 entitled “Atomic

25

Energy Commission” is hereby amended to read as follows:

26

     42-27-6. Reactor usage charges.

27

     (a) Effective July 1, 2018, All all fees collected by the atomic energy commission for use

28

of the reactor facilities and related services shall be deposited as general revenues. in a restricted

29

receipt account to support the technical operation and maintenance of the agency’s equipment.

30

     (b) All revenues remaining in the restricted receipt account, after expenditures authorized

31

in subdivision (a) of this section, above two hundred thousand dollars ($200,000) shall be paid

32

into the state’s general fund. These payments shall be made annually on the last business day of

33

the fiscal year.

34

     (c) A charge of up to forty percent (40%), adjusted annually as of July 1, shall be

 

LC003937 - Page 45 of 402

1

assessed against all University of Rhode Island (URI) sponsored research activity allocations. The

2

charge shall be applied to the existing URI sponsored research expenditures within the atomic

3

energy commission.

4

     SECTION 5. Title 35 of the General Laws entitled “Public Finance” is hereby amended

5

by adding thereto the following chapter:

6

CHAPTER 35-4.1

7

PERFORMANCE IMPROVEMENT FUND ACT

8

     35-4.1-1. Legislative findings.

9

     The general assembly finds and recognizes:

10

     (a) The importance of pursuing data-driven approaches to improving service delivery,

11

and that limited state resources should be allocated based on proven results, not inputs or

12

promised successes.

13

     (b) That pay for success contracts provide an opportunity for the state to address the

14

challenges of improving service delivery with limited resources as these contracts both:

15

     (1) Create incentives for improved performance and reduced costs, allow for more rapid

16

learning about which programs work and which do not, and accelerate the adoption of new, more

17

effective solutions, and

18

     (2) Provide a mechanism to bring upfront financial support from the private and nonprofit

19

sectors to innovative social programs that the state only repays if contractual performance targets

20

are achieved, thereby reducing the state’s financial risk in supporting innovative initiatives.

21

     35-4.1-2. Definitions.

22

     For the purpose of this chapter:

23

     (a) “Performance targets” means the level of performance, as measured by an

24

independent evaluator, which represent success. Success is defined in the pay for success

25

contract.

26

     (b) “Independent evaluator” means an independent entity selected by the state whose role

27

includes assessing and reporting on the achievement of performance targets at the frequency

28

required in the pay for success contract.

29

     (c) “Success payments” refer to the payments that the state will make only if contractual

30

performance targets are achieved as determined by the independent evaluator and approved by

31

the office of management and budget.

32

     (d) “Pay for success contracts” are contracts designed to improve outcomes and lower

33

costs for contracted government services that are subject to the following requirements:

34

     (1) A determination that the contract will result in significant performance improvements

 

LC003937 - Page 46 of 402

1

and budgetary savings across all impacted agencies if the performance targets are achieved;

2

     (2) A requirement that a substantial portion of any payment be conditioned on the

3

achievement of specific outcomes based on defined performance targets;

4

     (3) An objective process by which an independent evaluator will determine whether the

5

performance targets have been achieved;

6

     (4) A calculation of the amount and timing of payments that would be earned by the

7

service provider during each year of the agreement if performance targets are achieved as

8

determined by the independent evaluator; and

9

     (5) Payments shall only be made if performance targets are achieved.

10

     35-4.1-3. Creation of the Government Performance Improvement Fund.

11

     (a) There is hereby created and established in the state treasury a fund to be known as the

12

“government performance improvement fund” to which shall be deposited appropriations as may

13

be made from time to time by the general assembly. All money now or hereafter in the

14

government performance improvement fund are hereby dedicated for the purpose of funding pay

15

for success contracts.

16

     (b) By signing the pay for success contract, the authorizing department or agency is

17

confirming that the contract has met the requirements established in this chapter.

18

     (c) The department of administration is charged with, and may promulgate regulations as

19

necessary for, the administration of this fund for the purposes specified in this section, and may

20

make payments from the fund only in accordance with the terms and conditions of pay for

21

success contracts and upon approval of the director of the office of management and budget. All

22

claims against the fund shall be examined, audited, and allowed in the manner now or hereafter

23

provided by law for claims against the state.

24

     (d) The department of administration shall provide an annual status report for the prior

25

fiscal year on all contracts not later than December 31 of each year to the office of the governor,

26

house and senate finance committees.

27

     SECTION 6. This Article shall take effect upon passage.

28

ARTICLE 3

29

RELATING TO GOVERNMENT REFORM

30

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

31

entitled “Contractors’ Registration and Licensing Board” are hereby amended as follows:

32

     5-65-5. Registered application.

33

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

34

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

 

LC003937 - Page 47 of 402

1

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

2

not yet been obtained, if applicable;

3

     (2) Unemployment insurance account number if applicable;

4

     (3) State withholding tax account number if applicable;

5

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

6

participating in a retirement plan;

7

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

8

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

9

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

10

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

11

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

12

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

13

     (6) A signed affidavit subject to the penalties of perjury of a statement as to whether or

14

not the applicant has previously applied for registration, or is or was an officer, partner, or

15

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

16

corporation, partnership, or venture.

17

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

18

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

19

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

20

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

21

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

22

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

23

board attesting to the information herein.

24

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

25

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

26

and/or revocation of the registration.

27

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

28

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

29

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

30

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

31

regulations.

32

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

33

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

34

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

 

LC003937 - Page 48 of 402

1

     5-65-7. Insurance required of contractors.

2

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

3

liability and property damage insurance covering the work of that contractor which shall be

4

subject to this chapter in not less than the following amount: five hundred thousand dollars

5

($500,000) combined single limit, bodily injury and property damage.

6

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

7

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

8

claims from being filed against a contractor.

9

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

10

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

11

procured and is in effect. Failure to maintain insurance shall invalidate registration and may result

12

in a fine to the registrant and/or suspension or revocation of the registration.

13

     5-65-9. Registration fee.

14

     (a) Each applicant shall pay to the board:

15

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

16

($200).

17

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

18

due to clerical errors.

19

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

20

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

21

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

22

exclusive use of supporting programs established by this chapter.

23

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

24

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

25

the house and senate finance committees, detailing:

26

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

27

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

28

     (2) The total dollar amount of fines levied;

29

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

30

recently completed fiscal year; and

31

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

32

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

33

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

34

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

 

LC003937 - Page 49 of 402

1

as part of the capital projects and property management annual request.

2

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

3

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

4

     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

5

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

6

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

7

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

8

     5-84-1. Short title.

9

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

10

Design and Fire Professionals Act."

11

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

12

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

13

the division of design building, design and fire professionals.

14

     5-84-3. Division membership.

15

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

16

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

17

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

18

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

19

architects and the contractors’ registration and licensing board.

20

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

21

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

22

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

23

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

24

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

25

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

26

between the boards referred to in subsection (a) of this section as to the scope of a board

27

registrant's authority to engage in work relating to another board's jurisdiction or to issues relating

28

to ISDS designers licensed by the department of environmental management.

29

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

30

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

31

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

32

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

33

matters the board considers appropriate.

34

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

 

LC003937 - Page 50 of 402

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

     5-84-6. Cease and Desist Authority.

10

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

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

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

19

director’s designee should not issue an order to that person to cease and desist from the violation

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

All these hearings are governed in accordance with the administrative procedures act. If that

30

person fails to comply with an order of the department after being afforded a hearing, the superior

31

court for Providence county has jurisdiction upon complaint of the department to restrain and

32

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

33

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

34

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

 

LC003937 - Page 51 of 402

1

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

2

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

3

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

4

     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

5

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

6

follows:

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

regulation incorporated in the code by reference.

15

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

16

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

17

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

18

existing premises, structures, buildings, equipment, and facilities, and to make amendments to

19

them as deemed necessary.

20

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

21

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

22

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

23

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

24

as the authority having jurisdiction over the elements. 

25

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

26

state building commissioner.

27

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

28

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

29

necessary for the administration of the code. In the absence of a local building official or an

30

alternate, as detailed in § 23-27.3-107.2, the commissioner shall assume the responsibility of the

31

local building official and inspectors as required by § 23-27.3-107.4 and shall designate one of

32

the following agents to enforce the code:

33

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

34

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

 

LC003937 - Page 52 of 402

1

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

2

administration business regulation.

3

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

4

inspectors.

5

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

6

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

7

services and shall be deposited as general revenues. The attorney general shall be informed of any

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

local building official.

16

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

17

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

18

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

19

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

20

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

21

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

22

in the state or a certified building official presently or previously employed by a municipality and

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

deposited as general revenues.

32

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

33

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

34

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

 

LC003937 - Page 53 of 402

1

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

2

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

3

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

4

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

5

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

6

general revenues.

7

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

8

statewide process for electronic plan review, permit management and inspection.

9

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

10

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

11

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

12

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

13

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

14

management and inspection.

15

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

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

any recommendations for process or system improvement. 

24

     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-

25

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

26

Safety” are hereby amended as follows:

27

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

28

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

29

public safety business regulations’ division of building, design and fire professionals, the head of

30

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

31

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

32

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

33

cause. All authority, powers, duties and responsibilities previously vested in the division of fire

34

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

 

LC003937 - Page 54 of 402

1

     23-28.2-5. Bomb disposal unit.

2

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

3

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

4

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

5

includes any weapons of mass destruction (WMD) that may be explosive or chemical in

6

construction.

7

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

8

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

9

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

10

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

11

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

12

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

13

procedures where explosive devices or suspect devices are located.

14

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

15

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

16

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

17

called upon, be available to participate in training sessions, shall be approved by their local fire or

18

police chief, and must have their chief sign an agreement (memorandum of understanding) which

19

provides for their release during emergencies and training and assumes liability for any injuries

20

that may occur to them. All bomb squad members shall operate only under the direction of the

21

State Bomb Squad Commander or senior ranking Deputy State Fire Marshal who is certified as a

22

bomb technician. The bomb squad may also request assistance from the local fire and police

23

authorities when handling any explosive or incendiary device, WMD or post incident

24

investigations.

25

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

26

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

27

administration. through the department of business regulation.

28

     23-28.2-14. Enforcement.

29

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

30

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

31

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

32

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

33

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

34

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

 

LC003937 - Page 55 of 402

1

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

2

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

3

complete at the Rhode Island state police training academy an appropriate course of training in

4

law enforcement or must have previously completed a comparable course. To fulfill their

5

responsibilities, this unit shall have and may exercise in any part of the state all powers of

6

sheriffs, deputy sheriffs, town sergeants, chiefs of police, police officers, and constables.

7

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

8

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

9

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

10

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

11

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

12

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

13

Safety Code.

14

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

15

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

16

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

17

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

18

to the above issuance of citations:

19

     (1) Impediments to Egress:

20

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

21

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

22

access, exit or exit discharge).

23

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

24

visible.

25

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

26

section does not include emergency lighting).

27

     (2) Maintenance:

28

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

29

continuously maintained.

30

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

31

being tested or operated.

32

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

33

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

34

the system.

 

LC003937 - Page 56 of 402

1

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

2

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

3

     (3) Fire Department Access and Water Supply:

4

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

5

(fire lane) is obstructed by parked vehicles or other impediments.

6

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

7

impeded.

8

     (4) Fire Protection Systems:

9

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

10

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

11

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

12

extinguishers inspected, maintained or recharged.

13

     (5) Admissions supervised:

14

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

15

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

16

by the State Fire Marshal or his or her designee.

17

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

18

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

19

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

20

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

21

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

22

the citation.

23

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

24

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

25

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

26

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

27

of arrest.

28

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

29

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

30

be cause for the district court to issue a warrant of arrest with the penalty assessed and an

31

additional five hundred dollar ($500) fine.

32

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

33

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

34

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

 

LC003937 - Page 57 of 402

1

citation(s), as follows:

2

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

3

month period;

4

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

5

month period;

6

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

7

within any sixty (60) month period;

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

training coordinating board based on recommendations of a screening committee of that board.

19

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

20

budget process.

21

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

22

developed by the fire education and training coordinating board.

23

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

24

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

25

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

26

appointed by the governor with the advice and consent of the senate. In making said

27

appointments, the governor shall give due consideration to including in the board's membership

28

representatives of the following groups:

29

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

30

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

31

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

32

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

33

of volunteer or call personnel.

34

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

 

LC003937 - Page 58 of 402

1

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

2

compensation.

3

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

4

     (5) Rhode Island department of environmental management.

5

     (6) Rhode Island fire safety association.

6

     (7) Rhode Island state firefighter's league.

7

     (8) Rhode Island association of firefighters.

8

     (9) Regional firefighters leagues.

9

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

10

members.

11

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

12

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

13

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

14

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

15

of an unexpired term shall not constitute a full term.

16

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

17

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

18

eligible for appointment.

19

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

20

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

21

March 29, 2006 unless he or she is a resident of this state.

22

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

23

same amount per mile approved for state employees.

24

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

25

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

26

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

27

     (i) The board shall:

28

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

29

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

30

established by the board.

31

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

32

applicable NFPA standards used to produce training and education courses.

33

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

34

standards.

 

LC003937 - Page 59 of 402

1

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

2

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

3

programs.

4

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

5

annual report to the governor, the speaker of the house of representatives, the president of the

6

senate, and the secretary of state of its activities during that fiscal year. The report shall provide:

7

an operating statement summarizing meetings or hearing held, including meeting minutes,

8

subjects addressed, decisions rendered, rules or regulations promulgated, studies conducted,

9

policies and plans developed, approved or modified and programs administered or initiated; a

10

consolidated financial statement of all funds received and expended including the source of the

11

funds, a listing of any staff supported by these funds, and a summary of any clerical,

12

administrative or technical support received; a summary of performance during the previous

13

fiscal year including accomplishments, shortcomings and remedies; a synopsis of hearings,

14

complaints, suspensions, or other legal matters related to the authority of the council; a summary

15

of any training courses held pursuant to the provisions of this section; a briefing on anticipated

16

activities in the upcoming fiscal year and findings and recommendations for improvements. The

17

report shall be posted electronically on the general assembly and secretary of state's websites as

18

prescribed in § 42-20-8.2. The director of the department of administration shall be responsible

19

for the enforcement of the provisions of this subsection.

20

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

21

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

22

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

23

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

24

course shall include instruction in the following areas: the provisions of chapters 42-46, 36-14,

25

and 38-2; and the commission's rules and regulations. The state fire marshal shall, within ninety

26

(90) days of March 29, 2006, prepare and disseminate training materials relating to the provisions

27

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

28

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

29

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

30

administrator within the fire education and training unit.

31

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

32

members.

33

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

34

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

 

LC003937 - Page 60 of 402

1

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

2

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

3

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

4

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

5

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

6

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

7

state.

8

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

9

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

10

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

11

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

12

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

13

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

14

costs associated with the fire training academy. All amounts deposited into the fire academy

15

training restricted receipt account shall be exempt from the indirect cost recovery provisions of §

16

35-4-27.

17

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

18

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

19

     23-34.1-3. Definitions.

20

     As used in this chapter:

21

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

22

manufacturer.

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC003937 - Page 61 of 402

1

manually, mechanically or electrically operated and customarily placed in a public location and

2

that does not normally require the supervision or services of an operator or nonmechanical

3

devices with nonmoving parts, including, but not limited to, walk-through amusement attractions,

4

slides, and air structures ("moonwalks").

5

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

6

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

7

adjunct.

8

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

9

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

10

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

11

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

12

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

13

weight allowed per car or rideable unit.

14

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

15

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

16

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

17

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

18

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

19

booths is an adjunct.

20

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

21

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

22

without the approval of the manufacturer.

23

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

24

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

25

for the purpose of approving the application for a license.

26

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

27

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

28

manufacturer specifications.

29

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

30

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

31

manufacturer or an engineer.

32

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

33

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

34

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

 

LC003937 - Page 62 of 402

1

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

2

agent or otherwise.

3

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

4

control of the amusement ride or device or concession booth.

5

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

6

lasting part of the premises.

7

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

8

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

9

a decal which clearly shows the month and year of expiration.

10

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

11

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

12

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

13

inspection.

14

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

15

the original design specifications.

16

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

17

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

18

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

19

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

20

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

21

not provided by the manufacturer with said amusement ride.

22

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

23

causes the amusement ride or device to operate.

24

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

25

hospital for treatment or observation.

26

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

27

ride or device.

28

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

29

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

30

disassembly.

31

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

32

“Department of Public Safety” is hereby amended as follows:

33

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

34

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

 

LC003937 - Page 63 of 402

1

administration of the following divisions and agencies:

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

“Department of Administration” is hereby amended as follows:

10

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

11

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

12

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

13

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

14

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

15

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

16

following responsibilities:

17

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

18

DCAMM in carrying out the duties described below;

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

responsibilities:

28

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

29

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

30

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

31

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

32

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

33

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

34

duties provided in § 42-11-2:

 

LC003937 - Page 64 of 402

1

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

2

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

3

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

4

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

5

and property, real and personal;

6

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

7

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

8

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

9

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

10

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

11

replacement of state-owned motor vehicles by state agencies;

12

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

13

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

14

duties:

15

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

16

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

17

property;

18

     (iii) Capital equipment replacement;

19

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

20

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

21

     (vi) Responding to facilities emergencies;

22

     (vii) Managing traffic flow on state property;

23

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

24

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

25

     (4) To manage and oversee state fleet operations.

26

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

27

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

28

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

29

boards, offices, and functions:

30

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

31

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

32

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

33

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

34

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

 

LC003937 - Page 65 of 402

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

of DCAMM or the director of administration;

9

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

10

of DCAMM or the director of administration; and

11

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

12

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

13

requirement or complying with any valid rule or regulation.

14

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

15

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

16

of Business Regulation” are hereby amended as follows:

17

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

18

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

19

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

20

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

21

52, 53 and 58 of title 5; chapter 31 of title 6; chapter 11 of title 7; chapters 1 – 29, inclusive, of

22

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

23

inclusive, of title 27. The director of business regulation shall also and perform the duties

24

required by any and all other provisions of the general laws and public laws insofar as those

25

provisions relate to the director of revenue and regulation, chief of the division of banking and

26

insurance, chief of the division of intoxicating beverages, and each of the divisions and licensing

27

and regulatory areas within the jurisdiction of the department, except as otherwise provided by

28

this title.

29

     42-14-2. Functions of department.

30

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

31

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

32

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

33

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

34

alcoholic beverages;

 

LC003937 - Page 66 of 402

1

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

2

furniture, and filling materials;

3

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

4

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

5

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

6

public laws.

7

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

8

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

9

providing that notice be given to interested parties prior to the hearing, no such hearing shall be

10

held without notice in writing being given at least ten (10) days prior to such hearing to all

11

interested parties. For purposes of this section, an "interested party" shall be deemed to include

12

the party subject to regulation hereunder, the Rhode Island consumers' council, and any party

13

entitled to appear at the hearing. Notice to the party that will be subject to regulation, the Rhode

14

Island consumers' council [Repealed], and any party who has made known his or her intention to

15

appear at the hearing shall be sufficient if it be in writing and mailed, first class mail, to the party

16

at his or her regular business address. Notice to the general public shall be sufficient hereunder if

17

it be by publication in a newspaper of general circulation in the municipality affected by the

18

regulation posted on the department’s website.

19

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

20

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

21

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

22

and such other matters within the jurisdiction of the department as determined by the director.

23

The divisions shall have offices which shall be assigned to them it by the department of

24

administration.

25

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

26

reporting to the director, deputy director and/or health insurance commissioner as appropriate

27

shall be in charge of all matters relating to banking and insurance.

28

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

29

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

30

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

31

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

32

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

33

fraternal benefit and beneficiary societies.

34

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

 

LC003937 - Page 67 of 402

1

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

2

public law, act, or resolution of the general assembly or department regulation, they shall be

3

construed to mean superintendent of banking commissioner and superintendent of insurance

4

commissioner except as delineated in subsection (d) below.

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

health insurance.

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

business, or in the negotiation of loans for others.

30

     42-14-7. Deputies to administrator superintendents.

31

     The administrator superintendent of banking and the superintendent of insurance may

32

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

33

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

34

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

 

LC003937 - Page 68 of 402

1

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

2

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

3

shall be as effectual as service upon the administrator superintendent.

4

     42-14-8. Clerical assistance and expenses.

5

     The administrator superintendent of banking and the superintendent of insurance may

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

incorporation superintendents of banking and insurance, by issuing a subpoena duces tecum

19

signed by the director or his or her designee.

20

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

21

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

22

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

23

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

24

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

25

     42-14-16. Insurance – Administrative penalties.

26

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

27

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

28

promulgated thereunder has occurred by a licensee, or any person or entity conducting any

29

activities requiring licensure under title 27, the director or his or her designee may, in accordance

30

with the requirements of the Administrative Procedures Act, chapter 35 of this title:

31

     (1) Revoke or suspend a license;

32

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

33

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

34

     (3) Order the violator to cease such actions;

 

LC003937 - Page 69 of 402

1

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

2

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

3

14.5, 62, or 128.1 of title 42, or the regulations thereunder; or

4

     (5) Any combination of the above penalties.

5

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

6

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

7

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

8

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

9

other provisions of the general laws or public laws within the jurisdiction of the department

10

without obtaining a license, or who after the denial, suspension or revocation of a license

11

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

12

laws or public laws within the jurisdiction of the department, the department may issue its order

13

to that person, firm, corporation or association commanding them to appear before the department

14

at a hearing to be held no sooner than ten (10) days nor later than twenty (20) days after issuance

15

of that order to show cause why the department should not issue an order to that person to cease

16

and desist from the violation of the provisions of title 27 applicable law.

17

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

18

association named in the order in the same manner that summons in a civil action may be served,

19

or by mailing a copy of the order, certified mail, return receipt requested, to that person at any

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

Police” is hereby amended as follows:

29

     42-28-3. Scope of responsibilities. 

30

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

31

responsibility of:

32

     (1) Providing a uniformed force for law enforcement;

33

     (2) Preparing rules and regulations for law enforcement;

34

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

 

LC003937 - Page 70 of 402

1

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

2

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

3

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

4

     SECTION 10. Section 36-10-14 of the General Laws in Chapter 36-10 entitled

5

“Retirement System – Contributions and Benefits” is hereby amended to read as follows:

6

     36-10-14. Retirement for accidental disability. (a) Medical examination of an active

7

member for accidental disability and investigation of all statements and certificates by him or her

8

or in his or her behalf in connection therewith shall be made upon the application of the head of

9

the department in which the member is employed or upon application of the member, or of a

10

person acting in his or her behalf, stating that the member is physically or mentally incapacitated

11

for the performance of service as a natural and proximate result of an accident while in the

12

performance of duty, and certify the definite time, place, and conditions of the duty performed by

13

the member resulting in the alleged disability, and that the alleged disability is not the result of

14

willful negligence or misconduct on the part of the member, and is not the result of age or length

15

of service, and that the member should, therefore, be retired.

16

     (b) The application shall be made within five (5) years of the alleged accident from which

17

the injury has resulted in the members present disability and shall be accompanied by an accident

18

report and a physicians report certifying to the disability; provided that if the member was able to

19

return to his or her employment and subsequently reinjures or aggravates the same injury, the

20

application shall be made within the later of five (5) years of the alleged accident or three (3)

21

years of the reinjury or aggravation. The application may also state the member is permanently

22

and totally disabled from any employment.

23

     (c) Notwithstanding subsection (b), state employees who are receiving benefits under the

24

injured on duty provisions of RIGL §45-19-1 shall be subject to the provisions of Section RIGL

25

§45-19-1[j] for all matters relating to the application and processing of disability benefits.

26

     (d) If a medical examination conducted by three (3) physicians engaged by the retirement

27

board and such investigation as the retirement board may desire to make shall show that the

28

member is physically or mentally incapacitated for the performance of service as a natural and

29

proximate result of an accident, while in the performance of duty, and that the disability is not the

30

result of willful negligence or misconduct on the part of the member, and is not the result of age

31

or length of service, and that the member has not attained the age of sixty-five (65), and that the

32

member should be retired, the physicians who conducted the examination shall so certify to the

33

retirement board stating the time, place, and conditions of service performed by the member

34

resulting in the disability and the retirement board may grant the member an accidental disability

 

LC003937 - Page 71 of 402

1

benefit.

2

     (d)(e) The retirement board shall establish uniform eligibility requirements, standards,

3

and criteria for accidental disability which shall apply to all members who make application for

4

accidental disability benefits.

5

     SECTION 11. Section 45-19-1 of the General Laws in Chapter 45-19 entitled “Relief of

6

Injured and Deceased Fire Fighters and Police Officer is hereby amended to read as follows:

7

     45-19-1. Salary payment during line of duty illness or injury.

8

     (a) Whenever any police officer of the Rhode Island Airport Corporation or whenever

9

any police officer, fire fighter, crash rescue crewperson, fire marshal, chief deputy fire marshal,

10

or deputy fire marshal of any city, town, fire district, or the state of Rhode Island is wholly or

11

partially incapacitated by reason of injuries received or sickness contracted in the performance of

12

his or her duties or due to their rendering of emergency assistance within the physical boundaries

13

of the state of Rhode Island at any occurrence involving the protection or rescue of human life

14

which necessitates that they respond in a professional capacity when they would normally be

15

considered by their employer to be officially off-duty, the respective city, town, fire district, state

16

of Rhode Island or Rhode Island Airport Corporation by which the police officer, fire fighter,

17

crash rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, is

18

employed, shall, during the period of the incapacity, pay the police officer, fire fighter, crash

19

rescue crewperson, fire marshal, chief deputy fire marshal, or deputy fire marshal, the salary or

20

wage and benefits to which the police officer, fire fighter, crash rescue crewperson, fire marshal,

21

chief deputy fire marshal, or deputy fire marshal, would be entitled had he or she not been

22

incapacitated, and shall pay the medical, surgical, dental, optical, or other attendance, or

23

treatment, nurses, and hospital services, medicines, crutches, and apparatus for the necessary

24

period, except that if any city, town, fire district, the state of Rhode Island or Rhode Island

25

Airport Corporation provides the police officer, fire fighter, crash rescue crewperson, fire

26

marshal, chief deputy fire marshal, or deputy fire marshal, with insurance coverage for the related

27

treatment, services, or equipment, then the city, town, fire district, the state of Rhode Island or

28

Rhode Island Airport Corporation is only obligated to pay the difference between the maximum

29

amount allowable under the insurance coverage and the actual cost of the treatment, service, or

30

equipment. In addition, the cities, towns, fire districts, the state of Rhode Island or Rhode Island

31

Airport Corporation shall pay all similar expenses incurred by a member who has been placed on

32

a disability pension and suffers a recurrence of the injury or illness that dictated his or her

33

disability retirement, subject to the provisions of subsection (j) herein.

34

     (b) As used in this section, "police officer" means and includes any chief or other

 

LC003937 - Page 72 of 402

1

member of the police department of any city or town regularly employed at a fixed salary or wage

2

and any deputy sheriff, member of the fugitive task force, or capitol police officer, permanent

3

environmental police officer or criminal investigator of the department of environmental

4

management, or airport police officer.

5

     (c) As used in this section, "fire fighter" means and includes any chief or other member of

6

the fire department or rescue personnel of any city, town, or fire district, and any person

7

employed as a member of the fire department of the town of North Smithfield, or fire department

8

or district in any city or town.

9

     (d) As used in this section, "crash rescue crewperson" means and includes any chief or

10

other member of the emergency crash rescue section, division of airports, or department of

11

transportation of the state of Rhode Island regularly employed at a fixed salary or wage.

12

     (e) As used in this section, "fire marshal," "chief deputy fire marshal", and "deputy fire

13

marshal" mean and include the fire marshal, chief deputy fire marshal, and deputy fire marshals

14

regularly employed by the state of Rhode Island pursuant to the provisions of chapter 28.2 of title

15

23.

16

     (f) Any person employed by the state of Rhode Island, except for sworn employees of the

17

Rhode Island State Police, who is otherwise entitled to the benefits of chapter 19 of this title shall

18

be subject to the provisions of chapters 29 – 38 of title 28 for all case management procedures

19

and dispute resolution for all benefits.

20

     (g) In order to receive the benefits provided for under this section, a police officer or

21

firefighter must prove to their employer that he or she had reasonable grounds to believe that

22

there was an emergency which required an immediate need for their assistance for the protection

23

or rescue of human life.

24

     (h) Any claims to the benefits provided for under this section resulting from the rendering

25

of emergency assistance in the state of Rhode Island at any occurrence involving the protection or

26

rescue of human life while off-duty, shall first require those covered by this section to submit a

27

sworn declaration to their employer attesting to the date, time, place and nature of the event

28

involving the protection or rescue of human life causing the professional assistance to be rendered

29

and the cause and nature of any injuries sustained in the protection or rescue of human life. Sworn

30

declarations shall also be required from any available witness to the alleged emergency involving

31

the protection or rescue of human life.

32

     (i) All declarations required under this section shall contain the following language:

33

     "Under penalty of perjury, I declare and affirm that I have examined this declaration,

34

including any accompanying schedules and statements, and that all statements contained herein

 

LC003937 - Page 73 of 402

1

are true and correct."

2

     (j) Any person receiving injured on duty benefits pursuant to this section, and subject to

3

the jurisdiction of the state retirement board for accidental retirement disability, for an injury

4

occurring on or after July 1, 2011, shall apply for an accidental disability retirement allowance

5

from the state retirement board not later than the later of eighteen (18) months after the date of the

6

person’s injury that resulted in said person’s injured on duty status or sixty (60) days from the

7

date on which a the treating physician or an independent medical examiner certifies that the

8

person has reached maximum medical improvement. Nothing herein shall be construed to limit or

9

alter any and all rights of the parties with respect to independent medical examinations or

10

otherwise, as set forth in the applicable collective bargaining agreement. Notwithstanding the

11

foregoing, any person receiving injured on duty benefits as the result of a static and incapacitating

12

injury whose permanent nature is readily obvious and ascertainable shall be required to apply for

13

an accidental disability retirement allowance within sixty (60) days from the date on which a the

14

treating physician or an independent medical examiner certifies that the person’s injury is

15

permanent, or sixty (60) days from the date on which such determination of permanency is made

16

in accordance with the independent medical examination procedures as set forth in the applicable

17

collective bargaining agreement. Nothing herein shall be construed to limit or alter any and all

18

rights of the parties with respect to independent medical examinations or otherwise, as set forth in

19

the applicable collective bargaining agreement.

20

     (1) If a person with injured on duty status fails to apply for an accidental disability

21

retirement allowance from the state retirement board within the time frame set forth above, that

22

person's injured on duty payment shall terminate. Further, any person suffering a static and

23

incapacitating injury as set forth in subsection (j) above and who fails to apply for an accidental

24

disability benefit allowance as set forth in subsection (j) shall have his or her injured on duty

25

payment terminated.

26

     (2) A person who so applies shall continue to receive injured on duty payments, and the

27

right to continue to receive IOD payments of a person who so applies shall terminate in the event

28

of the final ruling of the workers’ compensation court, any other court of competent jurisdiction,

29

or the state retirement board allowing accidental disability benefits. Nothing herein shall be

30

construed to limit or alter any and all rights of the parties with respect to independent medical

31

examination or otherwise, as set forth in the applicable collective bargaining agreement.

32

     SECTION 12. Chapter 39-3 of the General Laws entitled “Regulatory Powers of

33

Administration” is hereby amended by adding thereto the following section:

34

     39-3-45. Transfer of powers, functions and resources from the water resources

 

LC003937 - Page 74 of 402

1

board.

2

     (a) There are hereby transferred to the division of public utilities and carriers those

3

powers and duties formerly administered by the employees of the water resources board as

4

provided for in chapter 46-15 (“Water Resources Management”) through 46-15.8 (“Water Use

5

and Efficiency Act”), inclusive, and any other applicable provisions of the general laws;

6

provided, however, the governor shall submit to the 2019 assembly any recommended statutory

7

changes necessary to facilitate the merger.

8

     (b) All resources of the water resources board, including, but not limited to, property,

9

employees and accounts, are hereby transferred to the division of public utilities and carriers.

10

     (c) As part of the above transfer, except for the general manager, all employees of the

11

water resources board currently subject to the provisions of chapter 4 of title 36 shall continue to

12

be subject to those provisions.

13

     SECTION 13. Section 42-11-10 of the General Laws in Chapter 42-11 entitled

14

"Department of Administration" is hereby amended to read as follows:

15

     42-11-10. Statewide planning program.

16

     (a) Findings. - The general assembly finds that the people of this state have a

17

fundamental interest in the orderly development of the state; the state has a positive interest and

18

demonstrated need for establishment of a comprehensive strategic state planning process and the

19

preparation, maintenance, and implementation of plans for the physical, economic, and social

20

development of the state; the continued growth and development of the state presents problems

21

that cannot be met by the cities and towns individually and that require effective planning by the

22

state; and state and local plans and programs must be properly coordinated with the planning

23

requirements and programs of the federal government.

24

      (b) Establishment of statewide planning program.

25

     (1) A statewide planning program is hereby established to prepare, adopt, and amend

26

strategic plans for the physical, economic, and social development of the state and to recommend

27

these to the governor, the general assembly, and all others concerned.

28

      (2) All strategic planning, as defined in subsection (c) of this section, undertaken by the

29

executive branch for those departments and other agencies enumerated in subsection (g) of this

30

section, all departments and agencies of the executive branch unless specifically exempted, shall

31

be conducted by or under the supervision of the statewide planning program. The statewide

32

planning program shall consist of a state planning council, and the office of strategic planning and

33

the office of systems planning of the division of planning, which shall be a division within the

34

department of administration.

 

LC003937 - Page 75 of 402

1

     (c) Strategic planning. Strategic planning includes the following activities:

2

     (1) Establishing or identifying general goals.

3

     (2) Refining or detailing these goals and identifying relationships between them.

4

     (3) Formulating, testing, and selecting policies and standards that will achieve desired

5

objectives.

6

     (4) Preparing long-range or system plans or comprehensive programs that carry out the

7

policies and set time schedules, performance measures, and targets.

8

     (5) Preparing functional short-range plans or programs that are consistent with

9

established or desired goals, objectives, and policies, and with long-range or system plans or

10

comprehensive programs where applicable, and that establish measurable intermediate steps

11

toward their accomplishment of the goals, objectives, policies, and/or long-range system plans.

12

     (6) Monitoring the planning of specific projects and designing of specific programs of

13

short duration by the operating departments, other agencies of the executive branch, and political

14

subdivisions of the state to insure that these are consistent with and carry out the intent of

15

applicable strategic plans.

16

     (7) Reviewing the execution of strategic plans and the results obtained and making

17

revisions necessary to achieve established goals.

18

     (d) State guide plan. Components of strategic plans prepared and adopted in accordance

19

with this section may be designated as elements of the state guide plan. The state guide plan shall

20

be comprised of functional elements or plans dealing with land use; physical development and

21

environmental concerns; economic development; housing production; energy supply, including

22

the development of renewable energy resources in Rhode Island, and energy access, use, and

23

conservation; human services; and other factors necessary to accomplish the objective of this

24

section. The state guide plan shall be a means for centralizing, integrating, and monitoring long-

25

range goals, policies, plans, and implementation activities related thereto. State agencies

26

concerned with specific subject areas, local governments, and the public shall participate in the

27

state guide planning process, which shall be closely coordinated with the budgeting process.

28

     (e) Membership of state planning council. The state planning council shall consist of the

29

following members:

30

     (1) The director of the department of administration as chairperson;

31

     (2) The director, policy office, in the office of the governor, as vice-chairperson;

32

     (3) The governor, or his or her designee;

33

     (4) The budget officer;

34

     (5) The chairperson of the housing resources commission;

 

LC003937 - Page 76 of 402

1

     (6) The chief of statewide highest-ranking administrative officer of the division

2

of planning, as secretary;

3

     (7) The president of the League of Cities and Towns or his or her designee and one

4

official of local government, who shall be appointed by the governor from a list of not less than

5

three (3) submitted by the Rhode Island League Cities and Towns; and

6

     (8) The executive director of the League of Cities and Towns;

7

     (9) One representative of a nonprofit community development or housing organization;

8

     (10) Four (4) Six (6) public members, appointed by the governor one of whom shall be an

9

employer with fewer than fifty (50) employees and one of whom shall be an employer with

10

greater than fifty (50) employees;

11

     (11) Two (2) representatives of a private, nonprofit environmental advocacy organization,

12

both to be appointed by the governor; and

13

     (12) The director of planning and development for the city of Providence.

14

     (13) The director of the department of transportation;

15

     (14) The director of the department of environmental management;

16

     (15) The director of the department of health;

17

     (16) The chief executive officer of the commerce corporation;

18

     (17) The commissioner of the Rhode Island office of energy resources;

19

     (18) The chief executive officer of the Rhode Island public transit authority;

20

     (19) The executive director of Rhode Island housing; and

21

     (20) The executive director of the coastal resources management council.

22

     (f) Powers and duties of state planning council. The state planning council shall have the

23

following powers and duties:

24

     (1) To adopt strategic plans as defined in this section and the long-range state guide plan,

25

and to modify and amend any of these, following the procedures for notification and public

26

hearing set forth in section 42-35-3, and to recommend and encourage implementation of these

27

goals to the general assembly, state and federal agencies, and other public and private bodies;

28

approval of strategic plans by the governor; and to ensure that strategic plans and the long-range

29

state guide plan are consistent with the findings, intent, and goals set forth in § 45-22.2-3, the

30

"Rhode Island Comprehensive Planning and Land Use Regulation Act";

31

     (2) To coordinate the planning and development activities of all state agencies, in

32

accordance with strategic plans prepared and adopted as provided for by this section;

33

     (3) To review and comment on the proposed annual work program of the statewide

34

planning program;

 

LC003937 - Page 77 of 402

1

     (4) To adopt rules and standards and issue orders concerning any matters within its

2

jurisdiction as established by this section and amendments to it;

3

     (5) To establish advisory committees and appoint members thereto representing diverse

4

interests and viewpoints as required in the state planning process and in the preparation or

5

implementation of strategic plans. The state planning council shall appoint a permanent

6

committee comprised of:

7

     (i) Public members from different geographic areas of the state representing diverse

8

interests, and

9

     (ii) Officials of state, local and federal government, which shall review all proposed

10

elements of the state guide plan, or amendment or repeal of any element of the plan, and shall

11

advise the state planning council thereon before the council acts on any such proposal. This

12

committee shall also advise the state planning council on any other matter referred to it by the

13

council; and

14

     (6) To establish and appoint members to an executive committee consisting of major

15

participants of a Rhode Island geographic information system with oversight responsibility for its

16

activities.

17

     (7) To adopt, on or before July 1, 2007, and to amend and maintain as an element of the

18

state guide plan or as an amendment to an existing element of the state guide plan, standards and

19

guidelines for the location of eligible renewable energy resources and renewable energy facilities

20

in Rhode Island with due consideration for the location of such resources and facilities in

21

commercial and industrial areas, agricultural areas, areas occupied by public and private

22

institutions, and property of the state and its agencies and corporations, provided such areas are of

23

sufficient size, and in other areas of the state as appropriate.

24

     (8) To act as the single, statewide metropolitan planning organization for transportation

25

planning, and to promulgate all rules and regulations that are necessary thereto.

26

     (g) Division of planning.

27

     (1) The division of planning shall be the principal staff agency of the state planning

28

council for preparing and/or coordinating strategic plans for the comprehensive management of

29

the state's human, economic, and physical resources. The division of planning shall recommend

30

to the state planning council specific guidelines, standards, and programs to be adopted to

31

implement strategic planning and the state guide plan and shall undertake any other duties

32

established by this section and amendments thereto.

33

     (2) The division of planning shall maintain records (which shall consist of files of

34

complete copies) of all plans, recommendations, rules, and modifications or amendments thereto

 

LC003937 - Page 78 of 402

1

adopted or issued by the state planning council under this section. The records shall be open to

2

the public.

3

     (3) The division of planning shall manage and administer the Rhode Island geographic

4

information system of land-related resources, and shall coordinate these efforts with other state

5

departments and agencies, including the University of Rhode Island, which shall provide

6

technical support and assistance in the development and maintenance of the system and its

7

associated data base.

8

     (4) The division of planning shall coordinate and oversee the provision of technical

9

assistance to political subdivisions of the state in preparing and implementing plans to accomplish

10

the purposes, goals, objectives, policies, and/or standards of applicable elements of the state guide

11

plan and shall make available to cities and towns data and guidelines that may be used in

12

preparing comprehensive plans and elements thereof and in evaluating comprehensive plans and

13

elements thereby.

14

     (h) [Deleted by P.L. 2011, ch. 215, § 4, and by P.L. 2011, ch. 313, § 4]

15

     (i) The division of planning shall be the principal staff agency of the water resources

16

board established pursuant to chapter 46-15 (“Water Resources Board”) and the water resources

17

board corporate established pursuant to chapter 46-15.1 (“Water Supply Facilities”).

18

     SECTION 14. Section 42-11-10.1 of the General Laws in Chapter 42-11 entitled

19

"Department of Administration" is hereby repealed.

20

     42-11-10.1. Transfer of powers, functions and resources from the water resources

21

board.

22

      (a) There are hereby transferred to the division of planning within the department of

23

administration those powers and duties formerly administered by the employees of the water

24

resources board as provided for in chapter 46-15 (“Water Resources Board”) through 46-15.8

25

(“Water Use and Efficiency Act”), inclusive, and any other applicable provisions of the general

26

laws; provided, however, the governor shall submit to the 2012 assembly any recommended

27

statutory changes necessary to facilitate the merger.

28

     (b) All resources of the water resources board, including, but not limited to, property,

29

employees and accounts, are hereby transferred to the division of planning.

30

     (c) As part of the above transfer, except for the general manager, all employees of the

31

water resources board currently subject to the provisions of chapter 4 of title 36 shall continue to

32

be subject to those provisions.

33

     SECTION 15. Section 46-15.1-19.1 of the General Laws in Chapter 46-15.1 entitled

34

"Water Supply Facilities" is hereby amended to read as follows:

 

LC003937 - Page 79 of 402

1

     46-15.1-19.1. Big River Reservoir – Administration.

2

     The Rhode Island water resources board, established pursuant to this chapter and chapter

3

15 of this title, department of administration shall be the only designated agency which will

4

administer those lands acquired for the Big River Reservoir as established under section 23 of

5

chapter 133 of the Public Laws of 1964. The director of the department of environmental

6

management and the director's authorized agents, employees, and designees shall, together with

7

the water resources board department of administration in accordance with the Big River

8

management area land use plan for the lands, protect the natural resources of the Big River

9

Reservoir lands. The lands of the Big River Reservoir are subject to enforcement authority of the

10

department of environmental management, as provided for in chapter 17.1 of title 42, and as

11

provided for in title 20 of the General Laws.

12

     SECTION 16. Section 42-133-6 of the General Laws in Chapter entitled “Tobacco

13

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

14

     42-133-6. Board and officers. 

15

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

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

a vacancy shall serve only until the expiration of the unexpired term of such member's

24

predecessor in office. Each member shall continue to hold office until a successor has been

25

appointed. Members shall be eligible for reappointment. No person shall be eligible for

26

appointment unless such person is a resident of the state. Each member, before entering upon the

27

duties of the office of member, shall swear or solemnly affirm to administer the duties of office

28

faithfully and impartially, and such oath or affirmation shall be filed in the office of the secretary

29

of state.

30

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

31

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

32

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

33

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

34

Those members of the board as of July 9, 2005 who were appointed to the board by the governor

 

LC003937 - Page 80 of 402

1

shall continue to serve the balance of their current terms.

2

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

3

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

4

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

5

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

6

regulations. The director of the department of administration shall, within ninety (90) days of July

7

9, 2005, prepare and disseminate training materials relating to the provisions of chapters 46 of

8

this title, 14 of title 36 and 2 of title 38.

9

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

10

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

11

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

12

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

13

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

14

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

15

additional officers as it shall deem appropriate.

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

corporation as shall be established by such contract or agreement. The board, however, shall

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

or alleged lack of performance of that person's duties on behalf of the corporation. These persons

32

shall be indemnified and held harmless, whether they are sued individually or in their capacities

33

as board members, officers or employees of the corporation, for all expenses, legal fees and/or

34

costs incurred by them during or resulting from the proceedings, and for any award or judgment

 

LC003937 - Page 81 of 402

1

arising out of their service to the corporation that is not paid by the corporation and is sought to

2

be enforced against a person individually, as expenses, legal fees, costs, awards or judgments

3

occur; provided, that neither the state nor the corporation shall indemnify any member, officer, or

4

employee:

5

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

6

knowing violation of law;

7

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

8

     (3) For any malicious act.

9

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

10

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

11

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

12

     SECTION 17. Sections 44-31.2-2 and 44-31.2-6 of the General Laws in Chapter 44-31.2

13

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

14

     44-31.2-2. Definitions. 

15

     For the purposes of this chapter:

16

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

17

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

18

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

19

company files an application for the tax credit.

20

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

21

certified production in the state as production-related costs.

22

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

23

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

24

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

25

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

26

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

27

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

28

title.

29

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

30

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

31

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

32

marketing of the motion picture.

33

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

34

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

 

LC003937 - Page 82 of 402

1

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

2

picture" shall not include the production of television coverage of news or athletic events, nor

3

shall it apply to any film, video, television series, or commercial or a production for which

4

records are required under 18 U.S.C. § 2257, to be maintained with respect to any performer in

5

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

6

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

7

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

8

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

9

include:

10

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

11

person who or that is in default:

12

     (i) On taxes owed to the state; or

13

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

14

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

15

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

16

public funds or monies by:

17

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

18

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

19

against such company or person;

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

post-production locations.

31

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

32

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

33

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

34

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

 

LC003937 - Page 83 of 402

1

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

2

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

3

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

4

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

5

     (a) Signed a viable distribution plan; or

6

     (b) Is producing the motion picture for:

7

     (i) A major motion picture distributor;

8

     (ii) A major theatrical exhibitor;

9

     (iii) Television network; or

10

     (iv) Cable television programmer.

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

special effects services, and animation services, salary, wages, and other compensation, including

19

related benefits, of persons employed, either directly or indirectly, in the production of a film

20

including writer, motion picture director, producer (provided the work is performed in the state of

21

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

22

of food and lodging; music, if performed, composed, or recorded by a Rhode Island musician, or

23

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

24

persons employed, either directly or indirectly, in the production of the motion picture, to Rhode

25

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

26

expense of a completion bond or insurance and accounting fees and expenses related to the

27

production's activities in Rhode Island); provided such services are provided by Rhode Island

28

licensed attorneys or accountants. 

29

     44-31.2-6. Certification and administration. 

30

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

31

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

32

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

33

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

34

information about the motion picture production company, and a specific Rhode Island motion

 

LC003937 - Page 84 of 402

1

picture. The film office shall review the completed application and determine whether it meets

2

the requisite criteria and qualifications for the initial certification for the production. If the initial

3

certification is granted, the film office shall issue a notice of initial certification of the motion

4

picture production to the motion picture production company and to the tax administrator. The

5

notice shall state that, after appropriate review, the initial application meets the appropriate

6

criteria for conditional eligibility. The notice of initial certification will provide a unique

7

identification number for the production and is only a statement of conditional eligibility for the

8

production and, as such, does not grant or convey any Rhode Island tax benefits.

9

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

10

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

11

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

12

company's compliance with the requirements of subsection 44-31.2-2(5). The applicant shall

13

properly prepare, sign and submit to the film office an application for final certification of the

14

production and which must include the certificate of good standing from the division of taxation.

15

In addition, the application shall contain such information and data as the film office determines

16

is necessary for the proper evaluation and administration, including, but not limited to, any

17

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

18

production previously granted initial certification. The final application shall also contain a cost

19

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

20

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

21

confirming the accuracy of the information included in the cost report. Upon review of a duly

22

completed and filed application, the film office will make a determination pertaining to the final

23

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

24

the motion picture production company final certification and cost report, the division of taxation

25

shall issue a certification of the amount of credit for which the motion picture production

26

company qualifies under § 44-31.2-5. To claim the tax credit, the division of taxation's

27

certification as to the amount of the tax credit shall be attached to all state tax returns on which

28

the credit is claimed.

29

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

30

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

31

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

32

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

33

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

34

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

 

LC003937 - Page 85 of 402

1

of its initial certification.

2

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

3

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

4

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

5

the general guidelines provided herein for the certification of the production and the resultant

6

production credit.

7

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

8

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

9

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

10

guidelines for the tax credit provided herein.

11

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

12

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

13

     SECTION 18. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled

14

“Tourism and Development” is hereby amended to read as follows:

15

     42-63.1-3. Distribution of tax.

16

     (a) For returns and tax payments received on or before December 31, 2015, except as

17

provided in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax

18

collected from residential units offered for tourist or transient use through a hosting platform,

19

shall be distributed as follows by the division of taxation and the city of Newport:

20

     (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as

21

otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel

22

is located; provided, however, that from the tax generated by the hotels in the city of Warwick,

23

thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district

24

established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater

25

Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided

26

further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)

27

of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau

28

established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the

29

Convention Authority of the city of Providence established pursuant to the provisions of chapter

30

84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

31

district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the

32

receipts attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode

33

Island commerce corporation as established in chapter 64 of title 42.

34

     (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where

 

LC003937 - Page 86 of 402

1

the hotel, which generated the tax, is physically located, to be used for whatever purpose the city

2

or town decides. The tax administrator is authorized to withhold and offset from any distribution

3

pursuant to this section any amounts owed to state agencies consistent with the requirements of

4

R.I. Gen. Laws § 45-13-1.1.

5

     (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce

6

corporation established in chapter 64 of title 42, and seven percent (7%) to the Greater

7

Providence-Warwick Convention and Visitors' Bureau.

8

     (b) For returns and tax payments received after December 31, 2015, except as provided in

9

§ 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from

10

residential units offered for tourist or transient use through a hosting platform, shall be distributed

11

as follows by the division of taxation and the city of Newport:

12

     (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in §

13

42-63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district,

14

twenty-five (25%) of the tax shall be given to the city or town where the hotel, which generated

15

the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

16

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-

17

eight percent (28%) of the tax shall be given to the Rhode Island commerce corporation

18

established in chapter 64 of title 42.

19

     (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-

20

5, twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five

21

percent (25%) of the tax shall be given to the city or town where the hotel, which generated the

22

tax, is physically located, twenty-three (23%) of the tax shall be given to the Greater Providence-

23

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of

24

the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

25

42.

26

     (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

27

twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent

28

(25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

29

physically located, twenty-three percent (23%) of the tax shall be given to the Greater

30

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-

31

four (24%) of the tax shall be given to the Rhode Island commerce corporation established in

32

chapter 64 of title 42.

33

     (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

34

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

 

LC003937 - Page 87 of 402

1

generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

2

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

3

percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

4

chapter 64 of title 42.

5

     (5) With respect to the tax generated by hotels in districts other than those set forth in

6

subdivisions (b)(1) through (b)(4), forty-two percent (42%) of the tax shall be given to the

7

regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five

8

percent (25%) of the tax shall be given to the city or town where the hotel, which generated the

9

tax, is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

10

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of

11

the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

12

42.

13

     (c) The proceeds of the hotel tax collected from residential units offered for tourist or

14

transient use through a hosting platform shall be distributed as follows by the division of taxation

15

and the city of Newport: twenty-five percent (25%) of the tax shall be given to the city or town

16

where the residential unit, which generated the tax, is physically located, and seventy-five percent

17

(75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter

18

64 of title 42.

19

     (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend

20

on the promotion and marketing of Rhode Island as a destination for tourists or businesses an

21

amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this

22

chapter for such fiscal year.

23

     (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments

24

received on or after July 1, 2016 and on or before June 30, 2017, except as provided in § 42-63.1-

25

12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from residential

26

units offered for tourist or transient use through a hosting platform, shall be distributed in

27

accordance with the distribution percentages established in § 42-63.1-3(a)(1) through § 42-63.1-

28

3(a)(3) by the division of taxation and the city of Newport.

29

     SECTION 19. Section 44-13-13 of the General Laws in Chapter 44-13 entitled “Public

30

Service Corporation Tax” is hereby amended to read as follows:

31

     44-13-13. Taxation of certain tangible personal property.

32

     The lines, cables, conduits, ducts, pipes, machines and machinery, equipment, and other

33

tangible personal property within this state of telegraph, cable, and telecommunications

34

corporations and express corporations, used exclusively in the carrying on of the business of the

 

LC003937 - Page 88 of 402

1

corporation shall be exempt from local taxation; provided, that nothing in this section shall be

2

construed to exempt any "community antenna television system company" (CATV) from local

3

taxation; and provided, that the tangible personal property of companies exempted from local

4

taxation by the provisions of this section shall be subject to taxation in the following manner:

5

     (1) Definitions. Whenever used in this section and in §§ 44-13-13.1 and 44-13-13.2,

6

unless the context otherwise requires:

7

     (i) "Average assessment ratio" means the total assessed valuation as certified on tax rolls

8

for the reference year divided by the full market value of the valuation as computed by the Rhode

9

Island department of revenue in accordance with § 16-7-21;

10

     (ii) "Average property tax rate" means the statewide total property levy divided by the

11

statewide total assessed valuation as certified on tax rolls for the most recent tax year;

12

     (iii) "Company" means any telegraph, cable, telecommunications, or express company

13

doing business within the state of Rhode Island;

14

     (iv) "Department" means the department of revenue;

15

     (v) "Population" shall mean the population as determined by the most recent census;

16

     (vi) "Reference year" means the calendar year two (2) years prior to the calendar year

17

preceding that in which the tax payment provided for by this section is levied;

18

     (vii) "Value of tangible personal property" of companies means the net book value of

19

tangible personal property of each company doing business in this state as computed by the

20

department of revenue. "Net book value" means the original cost less accumulated depreciation;

21

provided, that no tangible personal property shall be depreciated more than seventy-five percent

22

(75%) of its original cost.

23

     (2) On or before March 1 of each year, each company shall declare to the department, on

24

forms provided by the department, the value of its tangible personal property in the state of

25

Rhode Island on the preceding December 31.

26

     (3) On or before April 1, 1982 and each April 1 thereafter of each year, the division of

27

property valuation shall certify to the tax administrator the average property tax rate, the average

28

assessment ratio, and the value of tangible personal property of each company.

29

     (4) The tax administrator shall apply the average assessment ratio and the average tax rate

30

to the value of tangible personal property of each company and, by April 15 of each year, shall

31

notify the companies of the amount of tax due. For each filing relating to tangible personal

32

property as of December 31, 2008 and thereafter the tax rate applied by the tax administrator shall

33

be not less than the rate applied in the prior year.

34

     (5) The tax shall be due and payable within sixty (60) days of the mailing of the notice by

 

LC003937 - Page 89 of 402

1

the tax administrator. If the entire tax is not paid to the tax administrator when due, there shall be

2

added to the unpaid portion of the tax, and made a part of the tax, interest at the rate provided for

3

in § 44-1-7 from the date the tax was due until the date of the payment. The amount of any tax,

4

including interest, imposed by this section shall be a debt due from the company to the state, shall

5

be recoverable at law in the same manner as other debts, and shall, until collected, constitute a

6

lien upon all the company's property located in this state.

7

     (6) The proceeds from the tax shall be allocated in the following manner:

8

     (i) Payment of reasonable administrative expenses incurred by the department of revenue,

9

not to exceed three quarters of one percent (.75%), the payment to be identified as general

10

revenue and appropriated directly to the department;

11

     (ii) The remainder of the proceeds shall be deposited in a restricted revenue account and

12

shall be apportioned to the cities and towns within this state on the basis of the ratio of the city or

13

town population to the population of the state as a whole. Estimated revenues shall be distributed

14

to cities and towns by July 30 and may be recorded as a receivable by each city and town for the

15

prior fiscal year. The Department is authorized to withhold and offset from any distribution

16

pursuant to this section any amounts owed to state agencies consistent with the requirements of

17

R.I. Gen. Laws § 45-13-1.1.

18

     SECTION 20. Section 44-18-18.1 of the General Laws in Chapter 44-18 entitled “Sales

19

and Use Taxes – Liability and Computation” is hereby amended to read as follows:

20

     44-18-18.1. Local meals and beverage tax.

21

     (a) There is hereby levied and imposed, upon every purchaser of a meal and/or beverage,

22

in addition to all other taxes and fees now imposed by law, a local meals and beverage tax upon

23

each and every meal and/or beverage sold within the state of Rhode Island in or from an eating

24

and/or drinking establishment, whether prepared in the eating and/or drinking establishment or

25

not and whether consumed at the premises or not, at a rate of one percent of the gross receipts.

26

The tax shall be paid to the tax administrator by the retailer at the time and in the manner

27

provided.

28

     (b) All sums received by the division of taxation under this section as taxes, penalties, or

29

forfeitures, interest, costs of suit, and fines shall be distributed at least quarterly and credited and

30

paid by the state treasurer to the city or town where the meals and beverages are delivered. The

31

tax administrator is authorized to withhold and offset from any distribution pursuant to this

32

section any amounts owed to state agencies consistent with the requirements of R.I. Gen. Laws §

33

45-13-1.1.

34

     (c) When used in this section, the following words have the following meanings:

 

LC003937 - Page 90 of 402

1

     (1) "Beverage" means all nonalcoholic beverages, as well as alcoholic beverages, beer,

2

lager beer, ale, porter, wine, similar fermented malt, or vinous liquor.

3

     (2) "Eating and/or drinking establishment" means and includes restaurants, bars, taverns,

4

lounges, cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment stands, fish-

5

and-chip places, fried chicken places, pizzerias, food-and-drink concessions, or similar facilities

6

in amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial plants, race

7

tracks, shore resorts or other locations, lunch carts, mobile canteens and other similar vehicles,

8

and other like places of business that furnish or provide facilities for immediate consumption of

9

food at tables, chairs, or, counters or from trays, plates, cups, or other tableware, or in parking

10

facilities provided primarily for the use of patrons in consuming products purchased at the

11

location. Ordinarily, eating establishment does not mean and include food stores and

12

supermarkets. Eating establishments does not mean "vending machines," a self-contained

13

automatic device that dispenses for sale foods, beverages, or confection products. Retailers

14

selling prepared foods in bulk, either in customer-furnished containers or in the seller's

15

containers, for example "Soup and Sauce" establishments, are deemed to be selling prepared

16

foods ordinarily for immediate consumption and, as such, are considered eating establishments.

17

     (3) "Meal" means any prepared food or beverage offered or held out for sale by an eating

18

and/or drinking establishment for the purpose of being consumed by any person to satisfy the

19

appetite and that is ready for immediate consumption. All such food and beverage, unless

20

otherwise specifically exempted or excluded herein shall be included, whether intended to be

21

consumed on the seller's premises or elsewhere, whether designated as breakfast, lunch, snack,

22

dinner, supper, or by some other name, and without regard to the manner, time, or place of

23

service.

24

     (d) This local meals and beverage tax shall be administered and collected by the division

25

of taxation, and unless provided to the contrary in this chapter, all of the administration,

26

collection, and other provisions of chapters 18 and 19 of this title apply.

27

     In recognition of the work being performed by the streamlined sales and use tax

28

governing board, upon passage of any federal law that authorizes states to require remote sellers

29

to collect and remit sales and use taxes, the rate imposed under this section shall be increased

30

from one percent (1%) to one and one-half percent (1.5%). The one and one-half percent (1.5%)

31

rate shall take effect on the date that the state requires remote sellers to collect and remit sales and

32

use taxes.

33

     SECTION 21. Section 45-13-1.1 of the General Laws in Chapter 45-13 entitled “Aid

34

reduced by amounts owed state entities” is hereby amended to read as follows:

 

LC003937 - Page 91 of 402

1

     45-13-1.1. Aid reduced by amounts owed state entities.

2

     If any city or town fails to pay any assessment, bill, or charge levied, presented, or

3

imposed by any public or quasi-public board, commission, corporation, council, authority,

4

agency, department, committee or other similar body organized under the laws of this state,

5

within ninety (90) one hundred eighty (180) days of the presentment for payment of the

6

assessment, bill, or charge to the city or town, then there shall be deducted from any state aid

7

determined to be due under the provisions of this chapter, or from any funds distributed pursuant

8

to chapters 44-18 (sales and use tax) and 44-13 (public service corporation tax) of Title 44, and an

9

amount equal to that due and owing any or all of those commissions; provided, that the amount of

10

any deduction shall be reduced by the amount of any bill or charge presented for payment by city

11

or town to the state, which bill or charge has not been paid by the state within ninety (90) one

12

hundred eighty (180) days of presentment.

13

     SECTION 22. This Article shall take effect upon passage.

14

ARTICLE 4

15

RELATING TO TAXES AND REVENUE

16

     SECTION 1. Sections 42-61-4 and 42-61-15 of the General Laws in Chapter 61 entitled

17

“State Lottery” are hereby amended to read as follows:

18

     42-61-4. Powers and duties of director. 

19

     The director shall have the power and it shall be his or her duty to:

20

     (1) Supervise and administer the operation of lotteries in accordance with this chapter,

21

chapter 61.2 of this title and with the rules and regulations of the division;

22

     (2) Act as the chief administrative officer having general charge of the office and records

23

and to employ necessary personnel to serve at his or her pleasure and who shall be in the

24

unclassified service and whose salaries shall be set by the director of the department of revenue,

25

pursuant to the provisions of § 42-61-3.

26

     (3) In accordance with this chapter and the rules and regulations of the division, license

27

as agents to sell lottery tickets those persons, as in his or her opinion, who will best serve the

28

public convenience and promote the sale of tickets or shares. The director may require a bond

29

from every licensed agent, in an amount provided in the rules and regulations of the division.

30

Every licensed agent shall prominently display his or her license, or a copy of their license, as

31

provided in the rules and regulations of the committee;

32

     (4) Confer regularly as necessary or desirable, and not less than nine (9) times per year,

33

with the permanent joint committee on state lottery on the operation and administration of the

34

lotteries; make available for inspection by the committee, upon request, all books, records, files,

 

LC003937 - Page 92 of 402

1

and other information, and documents of the division; advise the committee and recommend

2

those matters that he or she deems necessary and advisable to improve the operation and

3

administration of the lotteries;

4

     (5) Suspend or revoke any license issued pursuant to this chapter, chapter 61.2 of this title

5

or the rules and regulations promulgated under this chapter and chapter 61.2 of this title;

6

     (6) Enter into contracts for the operation of the lotteries, or any part of the operation of

7

the lotteries, and into contracts for the promotion of the lotteries;

8

     (7) Ensure that monthly financial reports are prepared providing gross monthly revenues,

9

prize disbursements, other expenses, net income, and the amount transferred to the state general

10

fund for keno and for all other lottery operations; submit this report to the state budget officer, the

11

auditor general, the permanent joint committee on state lottery, the legislative fiscal advisors, and

12

the governor no later than the twentieth business day following the close of the month; the

13

monthly report shall be prepared in a manner prescribed by the members of the revenues

14

estimating conference; at the end of each fiscal year the director shall submit an annual report

15

based upon an accrual system of accounting which shall include a full and complete statement of

16

lottery revenues, prize disbursements and expenses, to the governor and the general assembly,

17

which report shall be a public document and shall be filed with the secretary of state;

18

     (8) Carry on a continuous study and investigation of the state lotteries throughout the

19

state, and the operation and administration of similar laws, which may be in effect in other states

20

or countries; and the director shall continue to exercise his authority to study, evaluate and where

21

deemed feasible and advisable by the director, implement lottery-related initiatives, including but

22

not limited to, pilot programs for limited periods of time, with the goal of generating additional

23

revenues to be transferred by the Lottery to the general fund pursuant to R.I. Gen. Laws §42-61-

24

15(3). Each such initiative shall be subjectively evaluated from time to time using measurable

25

criteria to determine whether the initiative is generating revenue to be transferred by the Lottery

26

to the general fund. Nothing herein shall be deemed to permit the implementation of an initiative

27

that would constitute an expansion of gambling requiring voter approval under applicable Rhode

28

Island law.

29

     (9) Implement the creation and sale of commercial advertising space on lottery tickets as

30

authorized by § 42-61-4 of this chapter as soon as practicable after June 22, 1994;

31

     (10) Promulgate rules and regulations, which shall include, but not be limited to:

32

     (i) The price of tickets or shares in the lotteries;

33

     (ii) The number and size of the prizes on the winning tickets or shares;

34

     (iii) The manner of selecting the winning tickets or shares;

 

LC003937 - Page 93 of 402

1

     (iv) The manner of payment of prizes to the holders of winning tickets or shares;

2

     (v) The frequency of the drawings or selections of winning tickets or shares;

3

     (vi) The number and types of location at which tickets or shares may be sold;

4

     (vii) The method to be used in selling tickets or shares;

5

     (viii) The licensing of agents to sell tickets or shares, except that a person under the age

6

of eighteen

7

     (18) shall not be licensed as an agent;

8

     (ix) The license fee to be charged to agents;

9

     (x) The manner in which the proceeds of the sale of lottery tickets or shares are

10

maintained, reported, and otherwise accounted for;

11

     (xi) The manner and amount of compensation to be paid licensed sales agents necessary

12

to provide for the adequate availability of tickets or shares to prospective buyers and for the

13

convenience of the general public;

14

     (xii) The apportionment of the total annual revenue accruing from the sale of lottery

15

tickets or shares and from all other sources for the payment of prizes to the holders of winning

16

tickets or shares, for the payment of costs incurred in the operation and administration of the

17

lotteries, including the expense of the division and the costs resulting from any contract or

18

contracts entered into for promotional, advertising, consulting, or operational services or for the

19

purchase or lease of facilities, lottery equipment, and materials, for the repayment of moneys

20

appropriated to the lottery fund;

21

     (xiii) The superior court upon petition of the director after a hearing may issue subpoenas

22

to compel the attendance of witnesses and the production of documents, papers, books, records,

23

and other evidence in any matter over which it has jurisdiction, control or supervision. If a person

24

subpoenaed to attend in the proceeding or hearing fails to obey the command of the subpoena

25

without reasonable cause, or if a person in attendance in the proceeding or hearing refuses

26

without lawful cause to be examined or to answer a legal or pertinent question or to exhibit any

27

book, account, record, or other document when ordered to do so by the court, that person may be

28

punished for contempt of the court;

29

     (xiv) The manner, standards, and specification for the process of competitive bidding for

30

division purchases and contracts; and

31

     (xv) The sale of commercial advertising space on the reverse side of, or in other available

32

areas upon, lottery tickets provided that all net revenue derived from the sale of the advertising

33

space shall be deposited immediately into the state's general fund and shall not be subject to the

34

provisions of § 42-61-15. 

 

LC003937 - Page 94 of 402

1

     42-61-15. State lottery fund.

2

     (a) There is created the state lottery fund, into which shall be deposited all revenues

3

received by the division from the sales of lottery tickets and license fees. The fund shall be in the

4

custody of the general treasurer, subject to the direction of division for the use of the division, and

5

money shall be disbursed from it on the order of the controller of the state, pursuant to vouchers

6

or invoices signed by the director and certified by the director of administration. The moneys in

7

the state lottery fund shall be allotted in the following order, and only for the following purposes:

8

     (1) Establishing a prize fund from which payments of the prize awards shall be disbursed

9

to holders of winning lottery tickets on checks signed by the director and countersigned by the

10

controller of the state or his or her designee.

11

     (i) The amount of payments of prize awards to holders of winning lottery tickets shall be

12

determined by the division, but shall not be less than forty-five percent (45%) nor more than

13

sixty-five percent (65%) of the total revenue accruing from the sale of lottery tickets.

14

     (ii) For the lottery game commonly known as "Keno", the amount of prize awards to

15

holders of winning Keno tickets shall be determined by the division, but shall not be less than

16

forty-five percent (45%) nor more than seventy-two percent (72%) of the total revenue accruing

17

from the sale of Keno tickets.

18

     (2) Payment of expenses incurred by the division in the operation of the state lotteries

19

including, but not limited to, costs arising from contracts entered into by the director for

20

promotional, consulting, or operational services, salaries of professional, technical, and clerical

21

assistants, and purchases or lease of facilities, lottery equipment, and materials; provided

22

however, solely for the purpose of determining revenues remaining and available for transfer to

23

the state's general fund, beginning in fiscal year 2015 expenses incurred by the division in the

24

operation of state lotteries shall reflect (i) beginning in fiscal year 2015, the actuarially

25

determined employer contribution to the Employees' Retirement System consistent with the

26

state's adopted funding policy and (ii) beginning in fiscal year 2018, the actuarially determined

27

employer contribution to the State Employees and Electing Teachers’ OPEB System consistent

28

with the state’s adopted funding policy. For financial reporting purposes, the state lottery fund

29

financial statements shall be prepared in accordance with generally accepted accounting

30

principles as promulgated by the Governmental Accounting Standards Board; and

31

     (3) Payment into the general revenue fund of all revenues remaining in the state lottery

32

fund after the payments specified in subdivisions (a)(1) – (a)(2) of this section.

33

     (b) The auditor general shall conduct an annual post audit of the financial records and

34

operations of the lottery for the preceding year in accordance with generally accepted auditing

 

LC003937 - Page 95 of 402

1

standards and government auditing standards. In connection with the audit, the auditor general

2

may examine all records, files, and other documents of the division, and any records of lottery

3

sales agents that pertain to their activities as agents, for purposes of conducting the audit. The

4

auditor general, in addition to the annual post audit, may require or conduct any other audits or

5

studies he or she deems appropriate, the costs of which shall be borne by the division.

6

     (c) Payments into the state's general fund specified in subsection (a)(3) of this section

7

shall be made on an estimated quarterly basis. Payment shall be made on the tenth business day

8

following the close of the quarter except for the fourth quarter when payment shall be on the last

9

business day.

10

     SECTION 2. Chapter 42-61.2 of the General Laws entitled “Video-Lottery Terminal” is

11

hereby amended by adding thereto the following section:

12

     42-61.2-2.4. State to conduct sports wagering hosted by Twin River and the Tiverton

13

Gaming Facility. –

14

     (a) Article VI, Section 22 of the Rhode Island Constitution provides that “[n]o act

15

expanding the types or locations of gambling permitted within the state or within any city or town

16

. . . shall take effect until it has been approved by the majority of those electors voting in a

17

statewide referendum and by the majority of those electors voting in said referendum in the

18

municipality in which the proposed gambling would be allowed . . .”

19

     (b) In the 2012 general election, a majority of Rhode Island voters statewide and in the

20

Town of Lincoln approved the following referendum question (among others):

21

     “Shall an act be approved which would authorize the facility known as “Twin River” in

22

the town of Lincoln to add state-operated casino gaming, such as table games, to the types of

23

gambling it offers?”

24

     (c) Similarly, in the 2016 general election, a majority of Rhode Island voters statewide

25

and in the Town of Tiverton approved the following referendum question (among others):

26

     “Shall an act be approved which would authorize a facility owned by Twin River-

27

Tiverton, LLC, located in the Town of Tiverton at the intersection of William S. Canning

28

Boulevard and Stafford Road, to be licensed as a pari-mutuel facility and offer state-operated

29

video-lottery games and state-operated casino gaming, such as table games?”

30

     (d) In the voter information handbooks setting forth and explaining the question in each

31

instance, “casino gaming” was defined to include games “within the definition of Class III

32

gaming as that term is defined in section 2703(8) of Title 25 of the United States Code and which

33

is approved by the State of Rhode Island through the Lottery Division.” “Casino gaming” is also

34

defined to include games within the definition of class III gaming in section 42-61.2-1 of the

 

LC003937 - Page 96 of 402

1

general laws.

2

     (e) Section 2703(8) of Title 25 US Code (part of the Indian Gaming Regulatory Act, or

3

“IGRA”) provides that the term “class III gaming” means “all forms of gaming that are not class I

4

gaming or class II gaming.” The regulations promulgated under IGRA (25 CFR 502.4) expressly

5

state that Class III gaming includes sports wagering.

6

     (f) Thus, voters state-wide and locally approved state-operated sports wagering to be

7

offered by the Twin River and Tiverton gaming facilities. Voter approval of sports wagering shall

8

be implemented by providing an infrastructure for state-operated sports wagering offered by the

9

Twin River gaming facilities in Lincoln and Tiverton, by authorizing necessary amendments to

10

certain contracts and by authorizing the division of lotteries to promulgate regulations to direct

11

and control state-operated sports wagering, such infrastructure and authorizations to become

12

effective when federal law is enacted or repealed or the United States Supreme Court affirms the

13

authority of states to regulate sports wagering within their respective borders.

14

     (g) State operated sports wagering shall be operated by the state through the division of

15

lotteries. Sports wagering may be conducted at (i) the Twin River Gaming Facility, located in

16

Lincoln at 100 Twin River Road and owned by UTGR, Inc., a licensed video lottery and table

17

game retailer, and at (ii) the Tiverton Gaming Facility, located in Tiverton at the intersection of

18

William S. Canning Boulevard and Stafford Road, and owned by Twin River-Tiverton, once

19

Twin River-Tiverton is licensed as a video lottery and table game retailer, provided that a federal

20

law has been enacted or repealed or a United States Supreme Court decision affirms the authority

21

of states to regulate sports wagering within their respective borders.

22

     (h) Subject to the change in federal law referenced in subsection (a) above, the state

23

through the division of lotteries shall exercise its existing authority to implement, operate,

24

conduct and control sports wagering at the Twin River gaming facility and the Twin River-

25

Tiverton gaming facility in accordance with the provisions of this chapter and the rules and

26

regulations of the division of lotteries.

27

     (i) Notwithstanding the provisions of this section, sports wagering shall be prohibited in

28

connection with any collegiate sports or athletic event that takes place in Rhode Island or a sports

29

contest or athletic event in which any Rhode Island college team participates, regardless of where

30

the event takes place.

31

     (j) No other law providing any penalty or disability for conducting, hosting, maintaining,

32

supporting or participating in sports wagering, or any acts done in connection with sports

33

wagering, shall apply to the conduct, hosting, maintenance, support or participation in sports

34

wagering pursuant to this chapter.

 

LC003937 - Page 97 of 402

1

     SECTION 3. Sections 42-142-1 and 42-142-2 of the General Laws in Chapter entitled

2

“Department of Revenue” are hereby amended to read as follows:

3

     42-142-1. Department of revenue.

4

      (a) There is hereby established within the executive branch of state government a

5

department of revenue.

6

     (b) The head of the department shall be the director of revenue, who shall be appointed

7

by the governor, with the advice and consent of the senate, and shall serve at the pleasure of the

8

governor.

9

     (c) The department shall contain the division of taxation (chapter 1 of title 44), the

10

division of motor vehicles (chapter 2 of title 31), the division of state lottery (chapter 61 of title

11

42), the office of revenue analysis (chapter 142 of title 42), the division of municipal finance

12

(chapter 142 of title 42), and a collection unit (chapter 142 of title 42). Any reference to the

13

division of property valuation, division of property valuation and municipal finance, or office of

14

municipal affairs in the Rhode Island general laws shall mean the division of municipal finance. 

15

     42-142-2. Powers and duties of the department.

16

     The department of revenue shall have the following powers and duties:

17

     (a) To operate a division of taxation.;

18

     (b) To operate a division of motor vehicles;

19

     (c) To operate a division of state lottery;

20

     (d) To operate an office of revenue analysis; and

21

     (e) To operate a division of property valuation. and;

22

     (f) To operate a collection unit.

23

     SECTION 4. Chapter 42-142 of the General Laws entitled “Department of Revenue” is

24

hereby amended by adding thereto the following section:

25

     42-142-8. Collection unit.

26

     (a) The director of the department of revenue is authorized to establish within the

27

department of revenue a collections unit for the purpose of assisting state agencies in the

28

collection of debts owed to the state. The director of the department of revenue may enter into an

29

agreement with any state agency(ies) to collect any delinquent debt owed to the state.

30

     (b) The director of the department of revenue shall initially implement a pilot program to

31

assist the agency(ies) with the collection of delinquent debts owed to the state.

32

     (c) The agency(ies) participating in the pilot program shall refer to the collection unit

33

within department of revenue, debts owed by delinquent debtors where the nature and amount of

34

the debt owed has been determined and reconciled by the agency and the debt is (i) the subject of

 

LC003937 - Page 98 of 402

1

a written settlement agreement and/or written waiver agreement and the delinquent debtor has

2

failed to timely make payments under said agreement and/or waiver and is therefore in violation

3

of the terms of said agreement and/or waiver; (ii) the subject of a final administrative order or

4

decision and the debtor has not timely appealed said order or decision; (iii) the subject of final

5

order, judgement or decision of a court of competent jurisdiction and the debtor has not timely

6

appealed said order, judgement or decision. The collections unit shall not accept a referral of any

7

delinquent debt unless it satisfies (c)(i), (ii) or (iii) above.

8

     (d) Any agency(ies) entering into an agreement with the department of revenue to allow

9

the collection unit of the department to collect a delinquent debt owed to the state shall indemnify

10

the department of revenue against injuries, actions, liabilities, or proceedings arising from the

11

collection, or attempted collection, by the collection unit of the debt owed to the state.

12

     (e) Before referring a delinquent debt to the collection unit, the agency(ies) must (i)

13

notify the debtor of its intention to submit the debt to the collection unit for collection and of the

14

debtor’s right to appeal that decision not less than thirty (30) days before the debt is submitted to

15

the collection unit.

16

     (f) At such time as the agency(ies) refers a delinquent debt to the collection unit, the

17

agency shall (i) represent in writing to the collection unit that it has complied with all applicable

18

state and federal laws and regulations relating to the collection of the debt, including, but not

19

limited to, the requirement to provide the debtor with the notice of referral to the collection unit

20

under section (e) above; and (ii) provide the collection unit personnel with all relevant supporting

21

documentation including, not limited to notices, invoices, ledgers, correspondence, agreements,

22

waivers, decisions, orders and judgements necessary for the collection unit to attempt to collect

23

the delinquent debt.

24

     (g) The referring agency(ies) shall assist the collection unit by providing any and all

25

information, expertise and resources deemed necessary by the collection unit to collect the

26

delinquent debts referred to the collection unit.

27

     (h) Upon receipt of a referral of a delinquent debt from an agency(ies), the amount of the

28

delinquent debt shall accrue interest at an annual rate with such rate determined by adding two (2)

29

percent to the prime rate which was in effect on October 1 of the preceding year; provided

30

however, in no event shall the rate of interest exceed twenty-two (21%) per annum nor be less

31

than eighteen percent (18%) per annum.

32

     (i) Upon receipt of a referral of a delinquent debt from the agency(ies), the collection unit

33

shall provide the delinquent debtor with a “Notice of Referral” advising the debtor that: (i) the

34

delinquent debt has been referred to the collection unit for collection; (ii) if payment in full of the

 

LC003937 - Page 99 of 402

1

delinquent debt has not been received by the collection unit within thirty (30) days of the date of

2

the Notice of Referral, the debtor will be responsible to pay a fee of twelve percent (12%) of the

3

amount of the outstanding delinquent debt, with such fee to be applied to the costs and expenses

4

of the collection unit, including costs and expenses incurred to take further collection efforts; this

5

fee shall be in addition to any principal and interest owed; and (iii) the collection unit will initiate,

6

in its names, any action that is available under state law for the collection of the delinquent debt,

7

including, but not limited to, referring the debt to a third party to initiate said action.

8

     (j) In the event that the delinquent debtor has not paid the delinquent debt in full within

9

thirty (30) days of the issuance of a “Notice of Referral” pursuant to subsection (i) above, the

10

collection unit shall impose upon each delinquent debtor a fee equal to twelve percent (12%) of

11

the amount of the outstanding delinquent debt.

12

     (k) Upon receipt of a referral of a delinquent debt from an agency(ies), the collection unit

13

shall have the authority to institute, in its name, any action(s) that are available under state law for

14

collection of the delinquent debt and interest, penalties and/or fees thereon and to, with or without

15

suit, settle the delinquent debt.

16

     (l) In exercising its authority under this section, the collection unit shall comply with all

17

state and federal laws and regulations related to the collection of debts.

18

     (m) The director of the department may enter into contracts with any person or entity to

19

be paid on a contingent or fee or other basis, for services rendered to the collection unit where the

20

contract is for the collection of delinquent debt, interest, penalty and/or fee owed by the debtor.

21

Under such contracts, the contingent fee shall be based on the actual amount of the debt, interest,

22

penalties or fee collected.

23

     (n) Upon of the receipt of payment from a delinquent debtor, whether a full or partial

24

payment, the collection unit shall disburse/deposit the proceeds of said payment in the following

25

order:

26

     (i) to any person or entity owed for services under a contract entered into pursuant to

27

section (m) above;

28

     (ii) to the appropriate federal account to reimburse the federal government funds owed to

29

them by the state from funds recovered;

30

     (iii) into a restricted receipt account in the department of revenue, twelve percent (12%)

31

of the total amount collected from the delinquent debtor to be used to help defray the costs and

32

expenses of operating the collection unit; and

33

     (iv) the balance of the amount collected to the referring agency.

34

     (o) Notwithstanding the above, the establishment of a collection unit within the

 

LC003937 - Page 100 of 402

1

department of revenue shall be contingent upon an annual appropriation by the general assembly

2

of amounts necessary and sufficient to cover the costs and expenses to establish, maintain and

3

operate the collection unit including, but not limited, computer hardware and software,

4

maintenance of the computer system to manage the system and personnel perform work within

5

the collection unit. In the event that the amount of the annual appropriation was sufficient to fund

6

the costs and expenses of operating the collection unit in any year, the amount in the restricted

7

receipt at the end of that fiscal year shall be deposited into the general fund or credited against

8

any future appropriation by the general assembly.

9

     (p) In addition to the implementation of any pilot program, the collection unit shall

10

comply with the provisions of this section in the collection of all delinquent debts under to this

11

section.

12

     (q) The department of revenue is authorized to promulgate rules and regulations as it

13

deems appropriate with respect to the collection unit.

14

     SECTION 5. Sections 44-18-7, 44-18-7.1, 44-18-7.3, 44-18-8, 44-18-15, 44-18-20, 44-

15

18-21, 44-18-22, 44-18-23, 44-18-25, and 44-19-7 of the General Laws in Chapter 44-18 entitled

16

“Sales and Use Taxes – Liability and Computation” are hereby amended to read as follows:

17

     44-18-7. Sales defined.

18

     "Sales" means and includes:

19

     (1) Any transfer of title or possession, exchange, barter, lease, or rental, conditional or

20

otherwise, in any manner or by any means of tangible personal property for a consideration.

21

"Transfer of possession", "lease", or "rental" includes transactions found by the tax administrator

22

to be in lieu of a transfer of title, exchange, or barter.

23

     (2) The producing, fabricating, processing, printing, or imprinting of tangible personal

24

property for a consideration for consumers who furnish either directly or indirectly the materials

25

used in the producing, fabricating, processing, printing, or imprinting.

26

     (3) The furnishing and distributing of tangible personal property for a consideration by

27

social, athletic, and similar clubs and fraternal organizations to their members or others.

28

     (4) The furnishing, preparing, or serving for consideration of food, meals, or drinks,

29

including any cover, minimum, entertainment, or other charge in connection therewith.

30

     (5) A transaction whereby the possession of tangible personal property is transferred, but

31

the seller retains the title as security for the payment of the price.

32

     (6) Any withdrawal, except a withdrawal pursuant to a transaction in foreign or interstate

33

commerce, of tangible personal property from the place where it is located for delivery to a point

34

in this state for the purpose of the transfer of title or possession, exchange, barter, lease, or rental,

 

LC003937 - Page 101 of 402

1

conditional or otherwise, in any manner or by any means whatsoever, of the property for a

2

consideration.

3

     (7) A transfer for a consideration of the title or possession of tangible personal property,

4

which has been produced, fabricated, or printed to the special order of the customer, or any

5

publication.

6

     (8) The furnishing and distributing of electricity, natural gas, artificial gas, steam,

7

refrigeration, and water.

8

     (9)(i) The furnishing for consideration of intrastate, interstate and international

9

telecommunications service sourced in this state in accordance with subsections 44-18.1(15) and

10

(16) and all ancillary services, any maintenance services of telecommunication equipment other

11

than as provided for in subdivision 44-18-12(b)(ii). For the purposes of chapters 18 and 19 of this

12

title only, telecommunication service does not include service rendered using a prepaid telephone

13

calling arrangement.

14

     (ii) Notwithstanding the provisions of paragraph (i) of this subdivision, in accordance

15

with the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116 – 126), subject to the

16

specific exemptions described in 4 U.S.C. § 116(c), and the exemptions provided in §§ 44-18-8

17

and 44-18-12, mobile telecommunications services that are deemed to be provided by the

18

customer's home service provider are subject to tax under this chapter if the customer's place of

19

primary use is in this state regardless of where the mobile telecommunications services originate,

20

terminate or pass through. Mobile telecommunications services provided to a customer, the

21

charges for which are billed by or for the customer's home service provider, shall be deemed to be

22

provided by the customer's home service provider.

23

     (10) The furnishing of service for transmission of messages by telegraph, cable, or radio

24

and the furnishing of community antenna television, subscription television, and cable television

25

services.

26

     (11) The rental of living quarters in any hotel, rooming house, or tourist camp.

27

     (12) The transfer for consideration of prepaid telephone calling arrangements and the

28

recharge of prepaid telephone calling arrangements sourced to this state in accordance with §§

29

44-18.1-11 and 44-18.1-15. "Prepaid telephone calling arrangement" means and includes prepaid

30

calling service and prepaid wireless calling service.

31

     (13) The sale, storage, use or other consumption of over-the-counter drugs as defined in

32

paragraph 44-18-7.1(h)(ii).

33

     (14) The sale, storage, use or other consumption of prewritten computer software

34

delivered electronically or by load and leave as defined in paragraph 44-18-7.1(g)(v).

 

LC003937 - Page 102 of 402

1

     (15) The sale, storage, use or other consumption of vendor-hosted prewritten computer

2

software as defined in paragraph 44-18-7.1(g)(vii).

3

     (165) The sale, storage, use or other consumption of medical marijuana as defined in §

4

21-28.6-3. (176) The furnishing of services in this state as defined in § 44-18-7.3.

5

     44-18-7.1. Additional Definitions.

6

     (a) "Agreement" means the streamlined sales and use tax agreement.

7

     (b) "Alcoholic beverages" means beverages that are suitable for human consumption and

8

contain one-half of one percent (.5%) or more of alcohol by volume.

9

     (c) "Bundled transaction" is the retail sale of two or more products, except real property

10

and services to real property, where (1) The products are otherwise distinct and identifiable, and

11

(2) The products are sold for one non-itemized price. A "bundled transaction" does not include

12

the sale of any products in which the "sales price" varies, or is negotiable, based on the selection

13

by the purchaser of the products included in the transaction.

14

     (i) "Distinct and identifiable products" does not include:

15

     (A) Packaging – such as containers, boxes, sacks, bags, and bottles – or other materials –

16

such as wrapping, labels, tags, and instruction guides – that accompany the "retail sale" of the

17

products and are incidental or immaterial to the "retail sale" thereof. Examples of packaging that

18

are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and

19

express delivery envelopes and boxes.

20

     (B) A product provided free of charge with the required purchase of another product. A

21

product is "provided free of charge" if the "sales price" of the product purchased does not vary

22

depending on the inclusion of the products "provided free of charge."

23

     (C) Items included in the member state's definition of "sales price," pursuant to appendix

24

C of the agreement.

25

     (ii) The term "one non-itemized price" does not include a price that is separately

26

identified by product on binding sales or other supporting sales-related documentation made

27

available to the customer in paper or electronic form including, but not limited to, an invoice, bill

28

of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and

29

services, rate card, or price list.

30

     (iii) A transaction that otherwise meets the definition of a "bundled transaction" as

31

defined above, is not a "bundled transaction" if it is:

32

     (A) The "retail sale" of tangible personal property and a service where the tangible

33

personal property is essential to the use of the service, and is provided exclusively in connection

34

with the service, and the true object of the transaction is the service; or

 

LC003937 - Page 103 of 402

1

     (B) The "retail sale" of services where one service is provided that is essential to the use

2

or receipt of a second service and the first service is provided exclusively in connection with the

3

second service and the true object of the transaction is the second service; or

4

     (C) A transaction that includes taxable products and nontaxable products and the

5

"purchase price" or "sales price" of the taxable products is de minimis.

6

     1. De minimis means the seller's "purchase price" or "sales price" of the taxable products

7

is ten percent (10%) or less of the total "purchase price" or "sales price" of the bundled products.

8

     2. Sellers shall use either the "purchase price" or the "sales price" of the products to

9

determine if the taxable products are de minimis. Sellers may not use a combination of the

10

"purchase price" and "sales price" of the products to determine if the taxable products are de

11

minimis.

12

     3. Sellers shall use the full term of a service contract to determine if the taxable products

13

are de minimis; or

14

     (D) The "retail sale" of exempt tangible personal property and taxable tangible personal

15

property where:

16

     1. The transaction includes "food and food ingredients", "drugs", "durable medical

17

equipment", "mobility enhancing equipment", "over-the-counter drugs", "prosthetic devices" (all

18

as defined in this section) or medical supplies; and

19

     2. Where the seller's "purchase price" or "sales price" of the taxable tangible personal

20

property is fifty percent (50%) or less of the total "purchase price" or "sales price" of the bundled

21

tangible personal property. Sellers may not use a combination of the "purchase price" and "sales

22

price" of the tangible personal property when making the fifty percent (50%) determination for a

23

transaction.

24

     (d) "Certified automated system (CAS)" means software certified under the agreement to

25

calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to

26

remit to the appropriate state, and maintain a record of the transaction.

27

     (e) "Certified service provider (CSP)" means an agent certified under the agreement to

28

perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on

29

its own purchases.

30

     (f) Clothing and Related Items

31

     (i) "Clothing" means all human wearing apparel suitable for general use.

32

     (ii) "Clothing accessories or equipment" means incidental items worn on the person or in

33

conjunction with "clothing." "Clothing accessories or equipment" does not include "clothing",

34

"sport or recreational equipment", or "protective equipment."

 

LC003937 - Page 104 of 402

1

     (iii) "Protective equipment" means items for human wear and designed as protection of

2

the wearer against injury or disease or as protections against damage or injury of other persons or

3

property but not suitable for general use. "Protective equipment" does not include "clothing",

4

"clothing accessories or equipment", and "sport or recreational equipment."

5

     (iv) "Sport or recreational equipment" means items designed for human use and worn in

6

conjunction with an athletic or recreational activity that are not suitable for general use. "Sport or

7

recreational equipment" does not include "clothing", "clothing accessories or equipment", and

8

"protective equipment."

9

     (g) Computer and Related Items

10

     (i) "Computer" means an electronic device that accepts information in digital or similar

11

form and manipulates it for a result based on a sequence of instructions.

12

     (ii) "Computer software" means a set of coded instructions designed to cause a

13

"computer" or automatic data processing equipment to perform a task.

14

     (iii) "Delivered electronically" means delivered to the purchaser by means other than

15

tangible storage media.

16

     (iv) "Electronic" means relating to technology having electrical, digital, magnetic,

17

wireless, optical, electromagnetic, or similar capabilities.

18

     (v) "Load and leave" means delivery to the purchaser by use of a tangible storage media

19

where the tangible storage media is not physically transferred to the purchaser.

20

     (vi) "Prewritten computer software" means "computer software," including prewritten

21

upgrades, that is not designed and developed by the author or other creator to the specifications of

22

a specific purchaser. The combining of two (2) or more "prewritten computer software" programs

23

or prewritten portions thereof does not cause the combination to be other than "prewritten

24

computer software." "Prewritten computer software" includes software designed and developed

25

by the author or other creator to the specifications of a specific purchaser when it is sold to a

26

person other than the specific purchaser. Where a person modifies or enhances "computer

27

software" of which the person is not the author or creator, the person shall be deemed to be the

28

author or creator only of such person's modifications or enhancements. "Prewritten computer

29

software" or a prewritten portion thereof that is modified or enhanced to any degree, where such

30

modification or enhancement is designed and developed to the specifications of a specific

31

purchaser, remains "prewritten computer software"; provided, however, that where there is a

32

reasonable, separately stated charge or an invoice or other statement of the price given to the

33

purchaser for such modification or enhancement, such modification or enhancement shall not

34

constitute "prewritten computer software."

 

LC003937 - Page 105 of 402

1

     (vii) “Vendor-hosted prewritten computer software” means prewritten computer software

2

that is accessed through the Internet and/or a vendor-hosted server regardless of whether the

3

access is permanent or temporary and regardless of whether any downloading occurs.

4

     (h) Drugs and Related Items

5

     (i) "Drug" means a compound, substance, or preparation, and any component of a

6

compound, substance, or preparation, other than "food and food ingredients," "dietary

7

supplements" or "alcoholic beverages":

8

     (A) Recognized in the official United States Pharmacopoeia, official Homeopathic

9

Pharmacopoeia of the United States, or official National Formulary, and supplement to any of

10

them; or

11

     (B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of

12

disease; or

13

     (C) Intended to affect the structure or any function of the body.

14

     "Drug" shall also include insulin and medical oxygen whether or not sold on prescription.

15

     (ii) "Over-the-counter drug" means a drug that contains a label that identifies the product

16

as a drug as required by 21 C.F.R. § 201.66. The "over-the-counter drug" label includes:

17

     (A) A "Drug Facts" panel; or

18

     (B) A statement of the "active ingredient(s)" with a list of those ingredients contained in

19

the compound, substance, or preparation.

20

     "Over-the-counter drug" shall not include "grooming and hygiene products."

21

     (iii) "Grooming and hygiene products" are soaps and cleaning solutions, shampoo,

22

toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the

23

items meet the definition of "over-the-counter drugs."

24

     (iv) "Prescription" means an order, formula, or recipe issued in any form of oral, written,

25

electronic, or other means of transmission by a duly licensed practitioner authorized by the laws

26

of the member state.

27

     (i) "Delivery charges" means charges by the seller of personal property or services for

28

preparation and delivery to a location designated by the purchaser of personal property or services

29

including, but not limited to: transportation, shipping, postage, handling, crating, and packing.

30

     "Delivery charges" shall not include the charges for delivery of "direct mail" if the

31

charges are separately stated on an invoice or similar billing document given to the purchaser.

32

     (j) "Direct mail" means printed material delivered or distributed by United States mail or

33

other delivery service to a mass audience or to addressees on a mailing list provided by the

34

purchaser or at the direction of the purchaser when the cost of the items are not billed directly to

 

LC003937 - Page 106 of 402

1

the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by

2

the purchaser to the direct mail seller for inclusion in the package containing the printed material.

3

"Direct mail" does not include multiple items of printed material delivered to a single address.

4

     (k) "Durable medical equipment" means equipment including repair and replacement

5

parts for same which:

6

     (i) Can withstand repeated use; and

7

     (ii) Is primarily and customarily used to serve a medical purpose; and

8

     (iii) Generally is not useful to a person in the absence of illness or injury; and

9

     (iv) Is not worn in or on the body.

10

     Durable medical equipment does not include mobility enhancing equipment.

11

     (l) Food and Related Items

12

     (i) "Food and food ingredients" means substances, whether in liquid, concentrated, solid,

13

frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are

14

consumed for their taste or nutritional value and seeds and plants used to grow food and food

15

ingredients. "Food and food ingredients" does not include "alcoholic beverages", "tobacco",

16

"candy", "dietary supplements", and "soft drinks.", or "marijuana seeds or plants."

17

     (ii) "Prepared food" means:

18

     (A) Food sold in a heated state or heated by the seller;

19

     (B) Two (2) or more food ingredients mixed or combined by the seller for sale as a single

20

item; or

21

     (C) Food sold with eating utensils provided by the seller, including: plates, knives, forks,

22

spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used

23

to transport the food.

24

     "Prepared food" in (B) does not include food that is only cut, repackaged, or pasteurized

25

by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring

26

cooking by the consumer as recommended by the Food and Drug Administration in chapter 3,

27

part 401.11 of its Food Code so as to prevent food borne illnesses.

28

     (iii) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners

29

in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars,

30

drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no

31

refrigeration.

32

     (iv) "Soft drinks" means non-alcoholic beverages that contain natural or artificial

33

sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice,

34

or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by

 

LC003937 - Page 107 of 402

1

volume.

2

     (v) "Dietary supplement" means any product, other than "tobacco", intended to

3

supplement the diet that:

4

     (A) Contains one or more of the following dietary ingredients:

5

     1. A vitamin;

6

     2. A mineral;

7

     3. An herb or other botanical;

8

     4. An amino acid;

9

     5. A dietary substance for use by humans to supplement the diet by increasing the total

10

dietary intake; or

11

     6. A concentrate, metabolite, constituent, extract, or combination of any ingredient

12

described above; and

13

     (B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or

14

if not intended for ingestion in such a form, is not represented as conventional food and is not

15

represented for use as a sole item of a meal or of the diet; and

16

     (C) Is required to be labeled as a dietary supplement, identifiable by the "supplemental

17

facts" box found on the label and as required pursuant to 21 C.F.R. § 101.36.

18

     (m) "Food sold through vending machines" means food dispensed from a machine or

19

other mechanical device that accepts payment.

20

     (n) "Hotel" means every building or other structure kept, used, maintained, advertised as,

21

or held out to the public to be a place where living quarters are supplied for pay to transient or

22

permanent guests and tenants and includes a motel.

23

     (i) "Living quarters" means sleeping rooms, sleeping or housekeeping accommodations,

24

or any other room or accommodation in any part of the hotel, rooming house, or tourist camp that

25

is available for or rented out for hire in the lodging of guests.

26

     (ii) "Rooming house" means every house, boat, vehicle, motor court, or other structure

27

kept, used, maintained, advertised, or held out to the public to be a place where living quarters are

28

supplied for pay to transient or permanent guests or tenants, whether in one or adjoining

29

buildings.

30

     (iii) "Tourist camp" means a place where tents or tent houses, or camp cottages, or cabins

31

or other structures are located and offered to the public or any segment thereof for human

32

habitation.

33

     (o) "Lease or rental" means any transfer of possession or control of tangible personal

34

property for a fixed or indeterminate term for consideration. A lease or rental may include future

 

LC003937 - Page 108 of 402

1

options to purchase or extend. Lease or rental does not include:

2

     (i) A transfer of possession or control of property under a security agreement or deferred

3

payment plan that requires the transfer of title upon completion of the required payments;

4

     (ii) A transfer of possession or control of property under an agreement that requires the

5

transfer of title upon completion of required payments and payment of an option price does not

6

exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or

7

     (iii) Providing tangible personal property along with an operator for a fixed or

8

indeterminate period of time. A condition of this exclusion is that the operator is necessary for the

9

equipment to perform as designed. For the purpose of this subsection, an operator must do more

10

than maintain, inspect, or set-up the tangible personal property.

11

     (iv) Lease or rental does include agreements covering motor vehicles and trailers where

12

the amount of consideration may be increased or decreased by reference to the amount realized

13

upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).

14

     (v) This definition shall be used for sales and use tax purposes regardless if a transaction

15

is characterized as a lease or rental under generally accepted accounting principles, the Internal

16

Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law.

17

     (vi) This definition will be applied only prospectively from the date of adoption and will

18

have no retroactive impact on existing leases or rentals. This definition shall neither impact any

19

existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from

20

adopting a sale-leaseback exemption or exclusion after the effective date of the agreement.

21

     (p) "Mobility enhancing equipment" means equipment, including repair and replacement

22

parts to same, that:

23

     (i) Is primarily and customarily used to provide or increase the ability to move from one

24

place to another and that is appropriate for use either in a home or a motor vehicle; and

25

     (ii) Is not generally used by persons with normal mobility; and

26

     (iii) Does not include any motor vehicle or equipment on a motor vehicle normally

27

provided by a motor vehicle manufacturer.

28

     Mobility enhancing equipment does not include durable medical equipment.

29

     (q) "Model 1 Seller" means a seller that has selected a CSP as its agent to perform all the

30

seller's sales and use tax functions, other than the seller's obligation to remit tax on its own

31

purchases.

32

     (r) "Model 2 Seller" means a seller that has selected a CAS to perform part of its sales

33

and use tax functions, but retains responsibility for remitting the tax.

34

     (s) "Model 3 Seller" means a seller that has sales in at least five member states, has total

 

LC003937 - Page 109 of 402

1

annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary

2

system that calculates the amount of tax due each jurisdiction, and has entered into a performance

3

agreement with the member states that establishes a tax performance standard for the seller. As

4

used in this definition, a seller includes an affiliated group of sellers using the same proprietary

5

system.

6

     (t) "Prosthetic device" means a replacement, corrective, or supportive device including

7

repair and replacement parts for same worn on or in the body to:

8

     (i) Artificially replace a missing portion of the body;

9

     (ii) Prevent or correct physical deformity or malfunction; or

10

     (iii) Support a weak or deformed portion of the body.

11

     (u) "Purchaser" means a person to whom a sale of personal property is made or to whom

12

a service is furnished.

13

     (v) "Purchase price" applies to the measure subject to use tax and has the same meaning

14

as sales price.

15

     (w) "Seller" means a person making sales, leases, or rentals of personal property or

16

services.

17

     (x) "State" means any state of the United States and the District of Columbia.

18

     (y) "Telecommunications" tax base/exemption terms

19

     (i) Telecommunication terms shall be defined as follows:

20

     (A) "Ancillary services" means services that are associated with or incidental to the

21

provision of "telecommunications services", including, but not limited to, "detailed

22

telecommunications billing", "directory assistance", "vertical service", and "voice mail services".

23

     (B) "Conference bridging service" means an "ancillary service" that links two (2) or more

24

participants of an audio or video conference call and may include the provision of a telephone

25

number. "Conference bridging service" does not include the "telecommunications services" used

26

to reach the conference bridge.

27

     (C) "Detailed telecommunications billing service" means an "ancillary service" of

28

separately stating information pertaining to individual calls on a customer's billing statement.

29

     (D) "Directory assistance" means an "ancillary service" of providing telephone number

30

information, and/or address information.

31

     (E) "Vertical service" means an "ancillary service" that is offered in connection with one

32

or more "telecommunications services", which offers advanced calling features that allow

33

customers to identify callers and to manage multiple calls and call connections, including

34

"conference bridging services".

 

LC003937 - Page 110 of 402

1

     (F) "Voice mail service" means an "ancillary service" that enables the customer to store,

2

send, or receive recorded messages. "Voice mail service" does not include any "vertical services"

3

that the customer may be required to have in order to utilize the "voice mail service".

4

     (G) "Telecommunications service" means the electronic transmission, conveyance, or

5

routing of voice, data, audio, video, or any other information or signals to a point, or between or

6

among points. The term "telecommunications service" includes such transmission, conveyance,

7

or routing in which computer processing applications are used to act on the form, code, or

8

protocol of the content for purposes of transmission, conveyance, or routing without regard to

9

whether such service is referred to as voice over internet protocol services or is classified by the

10

Federal Communications Commission as enhanced or value added. "Telecommunications

11

service" does not include:

12

     (1) Data processing and information services that allow data to be generated, acquired,

13

stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where

14

such purchaser's primary purpose for the underlying transaction is the processed data or

15

information;

16

     (2) Installation or maintenance of wiring or equipment on a customer's premises;

17

     (3) Tangible personal property;

18

     (4) Advertising, including, but not limited to, directory advertising;

19

     (5) Billing and collection services provided to third parties;

20

     (6) Internet access service;

21

     (7) Radio and television audio and video programming services, regardless of the

22

medium, including the furnishing of transmission, conveyance, and routing of such services by

23

the programming service provider. Radio and television audio and video programming services

24

shall include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and

25

video programming services delivered by commercial mobile radio service providers as defined

26

in 47 C.F.R. § 20.3;

27

     (8) "Ancillary services"; or

28

     (9) Digital products "delivered electronically", including, but not limited to: software,

29

music, video, reading materials or ring tones.

30

     (H) "800 service" means a "telecommunications service" that allows a caller to dial a toll-

31

free number without incurring a charge for the call. The service is typically marketed under the

32

name "800", "855", "866", "877", and "888" toll-free calling, and any subsequent numbers

33

designated by the Federal Communications Commission.

34

     (I) "900 service" means an inbound toll "telecommunications service" purchased by a

 

LC003937 - Page 111 of 402

1

subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded

2

announcement or live service. "900 service" does not include the charge for: collection services

3

provided by the seller of the "telecommunications services" to the subscriber, or service or

4

product sold by the subscriber to the subscriber's customer. The service is typically marketed

5

under the name "900 service," and any subsequent numbers designated by the Federal

6

Communications Commission.

7

     (J) "Fixed wireless service" means a "telecommunications service" that provides radio

8

communication between fixed points.

9

     (K) "Mobile wireless service" means a "telecommunications service" that is transmitted,

10

conveyed, or routed regardless of the technology used, whereby the origination and/or

11

termination points of the transmission, conveyance, or routing are not fixed, including, by way of

12

example only, "telecommunications services" that are provided by a commercial mobile radio

13

service provider.

14

     (L) "Paging service" means a "telecommunications service" that provides transmission of

15

coded radio signals for the purpose of activating specific pagers; such transmissions may include

16

messages and/or sounds.

17

     (M) "Prepaid calling service" means the right to access exclusively "telecommunications

18

services", which must be paid for in advance and that enables the origination of calls using an

19

access number or authorization code, whether manually or electronically dialed, and that is sold

20

in predetermined units or dollars of which the number declines with use in a known amount.

21

     (N) "Prepaid wireless calling service" means a "telecommunications service" that

22

provides the right to utilize "mobile wireless service", as well as other non-telecommunications

23

services, including the download of digital products "delivered electronically", content and

24

"ancillary services" which must be paid for in advance that is sold in predetermined units of

25

dollars of which the number declines with use in a known amount.

26

     (O) "Private communications service" means a telecommunications service that entitles

27

the customer to exclusive or priority use of a communications channel or group of channels

28

between or among termination points, regardless of the manner in which such channel or

29

channels are connected, and includes switching capacity, extension lines, stations, and any other

30

associated services that are provided in connection with the use of such channel or channels.

31

     (P) "Value-added non-voice data service" means a service that otherwise meets the

32

definition of "telecommunications services" in which computer processing applications are used

33

to act on the form, content, code, or protocol of the information or data primarily for a purpose

34

other than transmission, conveyance, or routing.

 

LC003937 - Page 112 of 402

1

     (ii) "Modifiers of Sales Tax Base/Exemption Terms" – the following terms can be used to

2

further delineate the type of "telecommunications service" to be taxed or exempted. The terms

3

would be used with the broader terms and subcategories delineated above.

4

     (A) "Coin-operated telephone service" means a "telecommunications service" paid for by

5

inserting money into a telephone accepting direct deposits of money to operate.

6

     (B) "International" means a "telecommunications service" that originates or terminates in

7

the United States and terminates or originates outside the United States, respectively. United

8

States includes the District of Columbia or a U.S. territory or possession.

9

     (C) "Interstate" means a "telecommunications service" that originates in one United

10

States state, or a United States territory or possession, and terminates in a different United States

11

state or a United States territory or possession.

12

     (D) "Intrastate" means a "telecommunications service" that originates in one United

13

States state or a United States territory or possession, and terminates in the same United States

14

state or a United States territory or possession.

15

     (E) "Pay telephone service" means a "telecommunications service" provided through any

16

pay telephone.

17

     (F) "Residential telecommunications service" means a "telecommunications service" or

18

"ancillary services" provided to an individual for personal use at a residential address, including

19

an individual dwelling unit such as an apartment. In the case of institutions where individuals

20

reside, such as schools or nursing homes, "telecommunications service" is considered residential

21

if it is provided to and paid for by an individual resident rather than the institution.

22

     The terms "ancillary services" and "telecommunications service" are defined as a broad

23

range of services. The terms "ancillary services" and "telecommunications service" are broader

24

than the sum of the subcategories. Definitions of subcategories of "ancillary services" and

25

"telecommunications service" can be used by a member state alone or in combination with other

26

subcategories to define a narrower tax base than the definitions of "ancillary services" and

27

"telecommunications service" would imply. The subcategories can also be used by a member

28

state to provide exemptions for certain subcategories of the more broadly defined terms.

29

     A member state that specifically imposes tax on, or exempts from tax, local telephone or

30

local telecommunications service may define "local service" in any manner in accordance with §

31

44-18.1-28, except as limited by other sections of this Agreement.

32

     (z) "Tobacco" means cigarettes, cigars, chewing, or pipe tobacco, or any other item that

33

contains tobacco.

34

     44-18-7.3. Services defined.

 

LC003937 - Page 113 of 402

1

     (a) "Services" means all activities engaged in for other persons for a fee, retainer,

2

commission, or other monetary charge, which activities involve the performance of a service in

3

this state as distinguished from selling property.

4

     (b) The following businesses and services performed in this state, along with the

5

applicable 2007 North American Industrial Classification System (NAICS) codes, are included in

6

the definition of services:

7

     (1) Taxicab and limousine services including but not limited to:

8

     (i) Taxicab services including taxi dispatchers (485310); and

9

     (ii) Limousine services (485320).

10

     (2) Other road transportation service including but not limited to:

11

     (i) Charter bus service (485510);

12

     (ii) "Transportation network companies" (TNC) defined as an entity that uses a digital

13

network to connect transportation network company riders to transportation network operators

14

who provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-

15

18-15 and is required to file a business application and registration form and obtain a permit to

16

make sales at retail with the tax administrator, to charge, collect, and remit Rhode Island sales

17

and use tax; and

18

     (iii) All other transit and ground passenger transportation (485999).

19

     (3) Pet care services (812910) except veterinary and testing laboratories services.

20

     (4)(i) "Room reseller" or "reseller" means any person, except a tour operator as defined in

21

§ 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as

22

defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the

23

reservation or transfer of which is subject to this chapter, such that the occupant pays all or a

24

portion of the rental and other fees to the room reseller or reseller, room reseller or reseller shall

25

include, but not be limited to, sellers of travel packages as defined in this section.

26

Notwithstanding the provisions of any other law, where said reservation or transfer of occupancy

27

is done using a room reseller or reseller, the application of the sales and use tax under §§ 44-18-

28

18 and 44-18-20, and the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or

29

reseller is required to register with, and shall collect and pay to, the tax administrator the sales

30

and use and hotel taxes, with said taxes being calculated upon the amount of rental and other fees

31

paid by the occupant to the room reseller or reseller, less the amount of any rental and other fees

32

paid by the room reseller or reseller to the hotel. The hotel shall collect and pay to the tax

33

administrator said taxes upon the amount of rental and other fees paid to the hotel by the room

34

reseller or reseller and/or the occupant. No assessment shall be made by the tax administrator

 

LC003937 - Page 114 of 402

1

against a hotel because of an incorrect remittance of the taxes under this chapter by a room

2

reseller or reseller. No assessment shall be made by the tax administrator against a room reseller

3

or reseller because of an incorrect remittance of the taxes under this chapter by a hotel. If the

4

hotel has paid the taxes imposed under this chapter, the occupant and/or room reseller or reseller,

5

as applicable, shall reimburse the hotel for said taxes. If the room reseller or reseller has paid said

6

taxes, the occupant shall reimburse the room reseller or reseller for said taxes. Each hotel and

7

room reseller or reseller shall add and collect, from the occupant or the room reseller or the

8

reseller, the full amount of the taxes imposed on the rental and other fees. When added to the

9

rental and other fees, the taxes shall be a debt owed by the occupant to the hotel or room reseller

10

or reseller, as applicable, and shall be recoverable at law in the same manner as other debts. The

11

amount of the taxes collected by the hotel and/or room reseller or reseller from the occupant

12

under this chapter shall be stated and charged separately from the rental and other fees, and shall

13

be shown separately on all records thereof, whether made at the time the transfer of occupancy

14

occurs, or on any evidence of the transfer issued or used by the hotel or the room reseller or the

15

reseller. A room reseller or reseller shall not be required to disclose to the occupant the amount of

16

tax charged by the hotel; provided, however, the room reseller or reseller shall represent to the

17

occupant that the separately stated taxes charged by the room reseller or reseller include taxes

18

charged by the hotel. No person shall operate a hotel in this state, or act as a room reseller or

19

reseller for any hotel in the state, unless the tax administrator has issued a permit pursuant to §

20

44-19-1.

21

     (ii) "Travel package" means a room, or rooms, bundled with one or more other, separate

22

components of travel such as air transportation, car rental, or similar items, which travel package

23

is charged to the customer or occupant for a single, retail price. When the room occupancy is

24

bundled for a single consideration, with other property, services, amusement charges, or any other

25

items, the separate sale of which would not otherwise be subject to tax under this chapter, the

26

entire single consideration shall be treated as the rental or other fees for room occupancy subject

27

to tax under this chapter; provided, however, that where the amount of the rental, or other fees for

28

room occupancy is stated separately from the price of such other property, services, amusement

29

charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant,

30

and such rental and other fees are determined by the tax administrator to be reasonable in relation

31

to the value of such other property, services, amusement charges, or other items, only such

32

separately stated rental and other fees will be subject to tax under this chapter. The value of the

33

transfer of any room, or rooms, bundled as part of a travel package may be determined by the tax

34

administrator from the room reseller's and/or reseller's and/or hotel's books and records that are

 

LC003937 - Page 115 of 402

1

kept in the regular course of business.

2

     (5) Investigation, Guard, and Armored Car Services (56161).

3

     (c) All services as defined herein are required to file a business application and

4

registration form and obtain a permit to make sales at retail with the tax administrator, to charge,

5

collect, and remit Rhode Island sales and use tax.

6

     (d) The tax administrator is authorized to promulgate rules and regulations in accordance

7

with the provisions of chapter 42-35 to carry out the provisions, policies, and purposes of this

8

chapter.

9

     44-18-8. Retail sale or sale at retail defined.

10

     A "retail sale" or "sale at retail" means any sale, lease or rentals of tangible personal

11

property, prewritten computer software delivered electronically or by load and leave, vendor-

12

hosted prewritten computer software, or services as defined in § 44-18-7.3 for any purpose other

13

than resale, sublease or subrent in the regular course of business. The sale of tangible personal

14

property to be used for purposes of rental in the regular course of business is considered to be a

15

sale for resale. In regard to telecommunications service as defined in § 44-18-7(9), retail sale does

16

not include the purchase of telecommunications service by a telecommunications provider from

17

another telecommunication provider for resale to the ultimate consumer; provided, that the

18

purchaser submits to the seller a certificate attesting to the applicability of this exclusion, upon

19

receipt of which the seller is relieved of any tax liability for the sale.

20

     44-18-15. "Retailer" defined.

21

     (a) "Retailer" includes:

22

     (1) Every person engaged in the business of making sales at retail including prewritten

23

computer software delivered electronically or by load and leave, vendor-hosted prewritten

24

computer software, sales of services as defined in § 44-18-7.3, and sales at auction of tangible

25

personal property owned by the person or others.

26

     (2) Every person making sales of tangible personal property including prewritten

27

computer software delivered electronically or by load and leave, or vendor-hosted prewritten

28

computer software, or sales of services as defined in § 44-18-7.3, through an independent

29

contractor or other representative, if the retailer enters into an agreement with a resident of this

30

state, under which the resident, for a commission or other consideration, directly or indirectly

31

refers potential customers, whether by a link on an Internet website or otherwise, to the retailer,

32

provided the cumulative gross receipts from sales by the retailer to customers in the state who are

33

referred to the retailer by all residents with this type of an agreement with the retailer, is in excess

34

of five thousand dollars ($5,000) during the preceding four (4) quarterly periods ending on the

 

LC003937 - Page 116 of 402

1

last day of March, June, September and December. Such retailer shall be presumed to be

2

soliciting business through such independent contractor or other representative, which

3

presumption may be rebutted by proof that the resident with whom the retailer has an agreement

4

did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus

5

requirement of the United States Constitution during such four (4) quarterly periods.

6

     (3) Every person engaged in the business of making sales for storage, use, or other

7

consumption of: (1i) tangible personal property, (ii) sales at auction of tangible personal property

8

owned by the person or others, (iii) prewritten computer software delivered electronically or by

9

load and leave, (iv) vendor-hosted prewritten computer software, and (ivv) services as defined in

10

§ 44-18-7.3.

11

     (4) A person conducting a horse race meeting with respect to horses, which are claimed

12

during the meeting.

13

     (5) Every person engaged in the business of renting any living quarters in any hotel as

14

defined in § 42-63.1-2, rooming house, or tourist camp.

15

     (6) Every person maintaining a business within or outside of this state who engages in the

16

regular or systematic solicitation of sales of tangible personal property, prewritten computer

17

software delivered electronically or by load and leave, vendor-hosted prewritten computer

18

software:

19

     (i) Advertising in newspapers, magazines, and other periodicals published in this state,

20

sold over the counter in this state or sold by subscription to residents of this state, billboards

21

located in this state, airborne advertising messages produced or transported in the airspace above

22

this state, display cards and posters on common carriers or any other means of public conveyance

23

incorporated or operated primarily in this state, brochures, catalogs, circulars, coupons,

24

pamphlets, samples, and similar advertising material mailed to, or distributed within this state to

25

residents of this state;

26

     (ii) Telephone;

27

     (iii) Computer assisted shopping networks; and

28

     (iv) Television, radio or any other electronic media, which is intended to be broadcast to

29

consumers located in this state.

30

     (b) When the tax administrator determines that it is necessary for the proper

31

administration of chapters 18 and 19 of this title to regard any salespersons, representatives,

32

truckers, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, employers,

33

or persons under whom they operate or from whom they obtain the tangible personal property

34

sold by them, irrespective of whether they are making sales on their own behalf or on behalf of

 

LC003937 - Page 117 of 402

1

the dealers, distributors, supervisors, or employers, the tax administrator may so regard them and

2

may regard the dealers, distributors, supervisors, or employers as retailers for purposes of

3

chapters 18 and 19 of this title.

4

     44-18-20. Use tax imposed.

5

     (a) An excise tax is imposed on the storage, use, or other consumption in this state of

6

tangible personal property; prewritten computer software delivered electronically or by load and

7

leave; vendor-hosted prewritten computer software; or services as defined in § 44-18-7.3,

8

including a motor vehicle, a boat, an airplane, or a trailer, purchased from any retailer at the rate

9

of six percent (6%) of the sale price of the property.

10

     (b) An excise tax is imposed on the storage, use, or other consumption in this state of a

11

motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle

12

dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent

13

(6%) of the sale price of the motor vehicle, boat, airplane, or trailer.

14

     (c) The word "trailer," as used in this section and in § 44-18-21, means and includes those

15

defined in § 31-1-5(a) – (e) and also includes boat trailers, camping trailers, house trailers, and

16

mobile homes.

17

     (d) Notwithstanding the provisions contained in this section and in § 44-18-21 relating to

18

the imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in

19

any casual sale:

20

     (1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child

21

of the transferor or seller;

22

     (2) When the transfer or sale is made in connection with the organization, reorganization,

23

dissolution, or partial liquidation of a business entity, provided:

24

     (i) The last taxable sale, transfer, or use of the article being transferred or sold was

25

subjected to a tax imposed by this chapter;

26

     (ii) The transferee is the business entity referred to or is a stockholder, owner, member, or

27

partner; and

28

     (iii) Any gain or loss to the transferor is not recognized for income tax purposes under the

29

provisions of the federal income tax law and treasury regulations and rulings issued thereunder;

30

     (3) When the sale or transfer is of a trailer, other than a camping trailer, of the type

31

ordinarily used for residential purposes and commonly known as a house trailer or as a mobile

32

home; or

33

     (4) When the transferee or purchaser is exempt under the provisions of § 44-18-30 or

34

other general law of this state or special act of the general assembly of this state.

 

LC003937 - Page 118 of 402

1

     (e) The term "casual" means a sale made by a person other than a retailer, provided, that

2

in the case of a sale of a motor vehicle, the term means a sale made by a person other than a

3

licensed motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed

4

under the provisions of subsections (a) and (b) of this section on the storage, use, or other

5

consumption in this state of a used motor vehicle less than the product obtained by multiplying

6

the amount of the retail dollar value at the time of purchase of the motor vehicle by the applicable

7

tax rate; provided, that where the amount of the sale price exceeds the amount of the retail dollar

8

value, the tax is based on the sale price. The tax administrator shall use as his or her guide the

9

retail dollar value as shown in the current issue of any nationally recognized, used-vehicle guide

10

for appraisal purposes in this state. On request within thirty (30) days by the taxpayer after

11

payment of the tax, if the tax administrator determines that the retail dollar value as stated in this

12

subsection is inequitable or unreasonable, he or she shall, after affording the taxpayer reasonable

13

opportunity to be heard, re-determine the tax.

14

     (f) Every person making more than five (5) retail sales of tangible personal property or

15

prewritten computer software delivered electronically or by load and leave, or vendor-hosted

16

prewritten computer software, or services as defined in § 44-18-7.3 during any twelve-month (12)

17

period, including sales made in the capacity of assignee for the benefit of creditors or receiver or

18

trustee in bankruptcy, is considered a retailer within the provisions of this chapter.

19

     (g)(1) "Casual sale" includes a sale of tangible personal property not held or used by a

20

seller in the course of activities for which the seller is required to hold a seller's permit or permits

21

or would be required to hold a seller's permit or permits if the activities were conducted in this

22

state, provided that the sale is not one of a series of sales sufficient in number, scope, and

23

character (more than five (5) in any twelve-month (12) period) to constitute an activity for which

24

the seller is required to hold a seller's permit or would be required to hold a seller's permit if the

25

activity were conducted in this state.

26

     (2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events by

27

nonprofit organizations, that are organized for charitable, educational, civic, religious, social,

28

recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6)

29

days duration each calendar year. Each event requires the issuance of a permit by the division of

30

taxation. Where sales are made at events by a vendor that holds a sales tax permit and is not a

31

nonprofit organization, the sales are in the regular course of business and are not exempt as casual

32

sales.

33

     (h) The use tax imposed under this section for the period commencing July 1, 1990, is at

34

the rate of seven percent (7%). In recognition of the work being performed by the streamlined

 

LC003937 - Page 119 of 402

1

sales and use tax governing board, upon passage of any federal law that authorizes states to

2

require remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the

3

first (1st) state fiscal quarter following the change, the rate imposed under § 44-18-18 shall be

4

reduced from seven percent (7.0%) to six and one-half percent (6.5%). The six and one- half

5

percent (6.5%) rate shall take effect on the date that the state requires remote sellers to collect and

6

remit sales and use taxes.

7

     44-18-21. Liability for use tax.

8

     (a) Every person storing, using, or consuming in this state tangible personal property,

9

including a motor vehicle, boat, airplane, or trailer, purchased from a retailer, and a motor

10

vehicle, boat, airplane, or trailer, purchased from other than a licensed motor vehicle dealer or

11

other than a retailer of boats, airplanes, or trailers respectively; or storing, using or consuming

12

specified prewritten computer software delivered electronically or by load and leave, or vendor-

13

hosted prewritten computer software, or services as defined in § 44-18-7.3 is liable for the use

14

tax. The person's liability is not extinguished until the tax has been paid to this state, except that a

15

receipt from a retailer engaging in business in this state or from a retailer who is authorized by the

16

tax administrator to collect the tax under rules and regulations that he or she may prescribe, given

17

to the purchaser pursuant to the provisions of § 44-18-22, is sufficient to relieve the purchaser

18

from further liability for the tax to which the receipt refers.

19

     (b) Each person before obtaining an original or transferral registration for any article or

20

commodity in this state, which article or commodity is required to be licensed or registered in the

21

state, shall furnish satisfactory evidence to the tax administrator that any tax due under this

22

chapter with reference to the article or commodity has been paid, and for the purpose of effecting

23

compliance, the tax administrator, in addition to any other powers granted to him or her, may

24

invoke the provisions of § 31-3-4 in the case of a motor vehicle. The tax administrator, when he

25

or she deems it to be for the convenience of the general public, may authorize any agency of the

26

state concerned with the licensing or registering of these articles or commodities to collect the use

27

tax on any articles or commodities which the purchaser is required by this chapter to pay before

28

receiving an original or transferral registration. The general assembly shall annually appropriate a

29

sum that it deems necessary to carry out the purposes of this section. Notwithstanding the

30

provisions of §§ 44-18-19, 44-18-22, and 44-18-24, the sales or use tax on any motor vehicle

31

and/or recreational vehicle requiring registration by the administrator of the division of motor

32

vehicles shall not be added by the retailer to the sale price or charge but shall be paid directly by

33

the purchaser to the tax administrator, or his or her authorized deputy or agent as provided in this

34

section.

 

LC003937 - Page 120 of 402

1

     (c) In cases involving total loss or destruction of a motor vehicle occurring within one

2

hundred twenty (120) days from the date of purchase and upon which the purchaser has paid the

3

use tax, the amount of the tax constitutes an overpayment. The amount of the overpayment may

4

be credited against the amount of use tax on any subsequent vehicle which the owner acquires to

5

replace the lost or destroyed vehicle or may be refunded, in whole or in part.

6

     44-18-22. Collection of use tax by retailer.

7

     Every retailer engaging in business in this state and making sales of tangible personal

8

property or prewritten computer software delivered electronically or by load and leave, or vendor-

9

hosted prewritten computer software, or services as defined in § 44-18-7.3, for storage, use, or

10

other consumption in this state, not exempted under this chapter shall, at the time of making the

11

sales, or if the storage, use, or other consumption of the tangible personal property, prewritten

12

computer software delivered electronically or by load and leave, vendor-hosted prewritten

13

computer software, or services as defined in § 44-18-7.3, is not then taxable under this chapter, at

14

the time the storage, use, or other consumption becomes taxable, collect the tax from the

15

purchaser and give to the purchaser a receipt in the manner and form prescribed by the tax

16

administrator.

17

     44-18-23. "Engaging in business" defined.

18

     As used in §§ 44-18-21 and 44-18-22 the term "engaging in business in this state" means

19

the selling or delivering in this state, or any activity in this state related to the selling or delivering

20

in this state of tangible personal property or prewritten computer software delivered electronically

21

or by load and leave, or vendor-hosted prewritten computer software, for storage, use, or other

22

consumption in this state; or services as defined in § 44-18-7.3 in this state. This term includes,

23

but is not limited to, the following acts or methods of transacting business:

24

     (1) Maintaining, occupying, or using in this state permanently or temporarily, directly or

25

indirectly or through a subsidiary, representative, or agent by whatever name called and whether

26

or not qualified to do business in this state, any office, place of distribution, sales or sample room

27

or place, warehouse or storage place, or other place of business;

28

     (2) Having any subsidiary, representative, agent, salesperson, canvasser, or solicitor

29

permanently or temporarily, and whether or not the subsidiary, representative, or agent is

30

qualified to do business in this state, operate in this state for the purpose of selling, delivering, or

31

the taking of orders for any tangible personal property, or prewritten computer software delivered

32

electronically or by load and leave, or vendor-hosted prewritten computer software, or services as

33

defined in § 44-18-7.3;

34

     (3) The regular or systematic solicitation of sales of tangible personal property, or

 

LC003937 - Page 121 of 402

1

prewritten computer software delivered electronically or by load and leave, or vendor-hosted

2

prewritten computer software, or services as defined in § 44-18-7.3, in this state by means of:

3

     (i) Advertising in newspapers, magazines, and other periodicals published in this state,

4

sold over the counter in this state or sold by subscription to residents of this state, billboards

5

located in this state, airborne advertising messages produced or transported in the air space above

6

this state, display cards and posters on common carriers or any other means of public conveyance

7

incorporated or operating primarily in this state, brochures, catalogs, circulars, coupons,

8

pamphlets, samples, and similar advertising material mailed to, or distributed within this state to

9

residents of this state;

10

     (ii) Telephone;

11

     (iii) Computer-assisted shopping networks; and

12

     (iv) Television, radio or any other electronic media, which is intended to be broadcast to

13

consumers located in this state.

14

     44-18-25. Presumption that sale is for storage, use, or consumption – Resale

15

certificate.

16

It is presumed that all gross receipts are subject to the sales tax, and that the use of all tangible

17

personal property, or prewritten computer software delivered electronically or by load and leave,

18

or vendor-hosted prewritten computer software, or services as defined in § 44-18-7.3, are subject

19

to the use tax, and that all tangible personal property, or prewritten computer software delivered

20

electronically or by load and leave, or vendor-hosted prewritten computer software, or services as

21

defined in § 44-18-7.3, sold or in processing or intended for delivery or delivered in this state is

22

sold or delivered for storage, use, or other consumption in this state, until the contrary is

23

established to the satisfaction of the tax administrator. The burden of proving the contrary is upon

24

the person who makes the sale and the purchaser, unless the person who makes the sale takes

25

from the purchaser a certificate to the effect that the purchase was for resale. The certificate shall

26

contain any information and be in the form that the tax administrator may require.

27

     44-19-7. Registration of retailers.

28

     Every retailer selling tangible personal property or prewritten computer software

29

delivered electronically or by load and leave or vendor-hosted prewritten computer software for

30

storage, use, or other consumption in this state, as well as services as defined in § 44-18-7.3, in

31

this state, or renting living quarters in any hotel as defined in § 42-63.1-2, rooming house, or

32

tourist camp in this state must register with the tax administrator and give the name and address

33

of all agents operating in this state, the location of all distribution or sales houses or offices, or of

34

any hotel as defined in § 42-63.1-2, rooming house, or tourist camp or other places of business in

 

LC003937 - Page 122 of 402

1

this state, and other information that the tax administrator may require.

2

     SECTION 6. Sections 44-20-1, 44-20-8.2, 44-20-12, 44-20-13 and 44-20-13.2 of the

3

General Laws in Chapter 44-20 entitled “Cigarette and Other Tobacco Products Tax” are hereby

4

amended to read as follows:

5

     44-20-1. Definitions. Whenever used in this chapter, unless the context requires

6

otherwise:

7

     (1) "Administrator" means the tax administrator;

8

     (2) "Cigarettes" means and includes any cigarettes suitable for smoking in cigarette form,

9

and each sheet of cigarette rolling paper, including but not limited to, paper made into a hollow

10

cylinder or cone, made with paper or any other material, with or without a filter suitable for use in

11

making cigarettes;

12

     (3) "Dealer" means any person whether located within or outside of this state, who sells

13

or distributes cigarettes and/or other tobacco products to a consumer in this state;

14

     (4) "Distributor" means any person:

15

     (A) Whether located within or outside of this state, other than a dealer, who sells or

16

distributes cigarettes and/or other tobacco products within or into this state. Such term shall not

17

include any cigarette or other tobacco product manufacturer, export warehouse proprietor, or

18

importer with a valid permit under 26 U.S.C. § 5712, if such person sells or distributes cigarettes

19

and/or other tobacco products in this state only to licensed distributors, or to an export warehouse

20

proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;

21

     (B) Selling cigarettes and/or other tobacco products directly to consumers in this state by

22

means of at least twenty-five (25) vending machines;

23

     (C) Engaged in this state in the business of manufacturing cigarettes and/or other tobacco

24

products or any person engaged in the business of selling cigarettes and/or other tobacco products

25

to dealers, or to other persons, for the purpose of resale only; provided, that seventy-five percent

26

(75%) of all cigarettes and/or other tobacco products sold by that person in this state are sold to

27

dealers or other persons for resale and selling cigarettes and/or other tobacco products directly to

28

at least forty (40) dealers or other persons for resale; or

29

     (D) Maintaining one or more regular places of business in this state for that purpose;

30

provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products are

31

purchased directly from the manufacturer and selling cigarettes and/or other tobacco products

32

directly to at least forty (40) dealers or other persons for resale;

33

     (5) “Electronic cigarette” means: (i) a personal vaporizer, electronic nicotine delivery

34

system or an electronic inhaler which generally utilizes a heating element that vaporizes a liquid

 

LC003937 - Page 123 of 402

1

solution containing nicotine or nicotine derivative; (ii) the liquid solution containing nicotine or

2

nicotine derivative; or, (iii) any combination thereof.

3

     (5) (6) "Importer" means any person who imports into the United States, either directly or

4

indirectly, a finished cigarette or other tobacco product for sale or distribution;

5

     (6) (7) "Licensed", when used with reference to a manufacturer, importer, distributor or

6

dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for

7

the type of business being engaged in. When the term "licensed" is used before a list of entities,

8

such as "licensed manufacturer, importer, wholesale dealer, or retailer dealer," such term shall be

9

deemed to apply to each entity in such list;

10

     (7) (8) "Manufacturer" means any person who manufactures, fabricates, assembles,

11

processes, or labels a finished cigarette and/or other tobacco products;

12

     (8) (9) "Other tobacco products" (OTP) means any cigars (excluding Little Cigars, as

13

defined in § 44-20.2-1, which are subject to cigarette tax), cheroots, stogies, smoking tobacco

14

(including granulated, plug cut, crimp cut, ready rubbed and any other kinds and forms of tobacco

15

suitable for smoking in a otherwise), chewing tobacco (including Cavendish, twist, plug, scrap

16

and any other kinds and forms of tobacco suitable for chewing), any and all forms of hookah,

17

shisha and "mu'assel" tobacco, snuff, Electronic cigarettes, and shall include any other articles or

18

products made of or containing tobacco, in whole or in part, or any tobacco substitute, except

19

cigarettes;

20

     (9) (10) "Person" means any individual, including an employee or agent, firm, fiduciary,

21

partnership, corporation, trust, or association, however formed;

22

     (10) (11) "Pipe" means an apparatus made of any material used to burn or vaporize

23

products so that the smoke or vapors can be inhaled or ingested by the user;

24

     (11) (12) "Place of business" means any location where cigarettes and/or other tobacco

25

products are sold, stored, or kept, including, but not limited to; any storage room, attic, basement,

26

garage or other facility immediately adjacent to the location. It also includes any receptacle, hide,

27

vessel, vehicle, airplane, train, or vending machine;

28

     (12) (13) "Sale" or "sell" means gifts, exchanges, and barter of cigarettes and/or other

29

tobacco products. The act of holding, storing, or keeping cigarettes and/or other tobacco products

30

at a place of business for any purpose shall be presumed to be holding the cigarettes and/or other

31

tobacco products for sale. Furthermore, any sale of cigarettes and/or other tobacco products by

32

the servants, employees, or agents of the licensed dealer during business hours at the place of

33

business shall be presumed to be a sale by the licensee;

34

     (13) (14) "Stamp" means the impression, device, stamp, label, or print manufactured,

 

LC003937 - Page 124 of 402

1

printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as

2

evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are

3

intended for a sale or distribution in this state that is exempt from state tax under the provisions of

4

state law; and also includes impressions made by metering machines authorized to be used under

5

the provisions of this chapter.

6

     44-20-8.2. Transactions only with licensed manufacturers, importers, distributors,

7

and dealers.

8

     A manufacturer or importer may sell or distribute cigarettes and/or other tobacco

9

products to a person located or doing business within this state, only if such person is a licensed

10

importer or distributor. An importer may obtain cigarettes and/or other tobacco products only

11

from a licensed manufacturer. A distributor may sell or distribute cigarettes and/or other tobacco

12

products to a person located or doing business within the state, only if such person is a licensed

13

distributor or dealer. A distributor may obtain cigarettes and/or other tobacco products only from

14

a licensed manufacturer, importer, or distributor. A dealer may obtain cigarettes and/or other

15

tobacco products only from a licensed distributor.

16

     44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, and

17

pipe tobacco products.

18

     (a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, electronic

19

cigarettes, and pipe tobacco products sold, or held for sale in the state by any person, the payment

20

of the tax to be accomplished according to a mechanism established by the administrator, division

21

of taxation, department of revenue. The tax imposed by this section shall be as follows:

22

     (1) At the rate of eighty percent (80%) of the wholesale cost of other tobacco products,

23

cigars, pipe tobacco products and smokeless tobacco other than snuff.

24

     (2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of

25

cigars, the tax shall not exceed fifty cents ($.50) eighty cents ($.80) for each cigar.

26

     (3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like

27

rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net

28

weight as listed by the manufacturer; provided, however, that any product listed by the

29

manufacturer as having a net weight of less than 1.2 ounces shall be taxed as if the product has a

30

net weight of 1.2 ounces.

31

     (b) Any dealer having in his or her possession any other tobacco, cigars, and pipe tobacco

32

products with respect to the storage or use of which a tax is imposed by this section shall, within

33

five (5) days after coming into possession of the other tobacco, cigars, and pipe tobacco in this

34

state, file a return with the tax administrator in a form prescribed by the tax administrator. The

 

LC003937 - Page 125 of 402

1

return shall be accompanied by a payment of the amount of the tax shown on the form to be due.

2

Records required under this section shall be preserved on the premises described in the relevant

3

license in such a manner as to ensure permanency and accessibility for inspection at reasonable

4

hours by authorized personnel of the administrator.

5

     (c) The proceeds collected are paid into the general fund.

6

     SECTION 7. Sections 44-20-12 and 44-20-13 of the General Laws in Chapter 44-20

7

entitled “Cigarette and Other Tobacco Products Tax” are hereby amended to read as follows:

8

     44-20-12. Tax imposed on cigarettes sold.

9

     A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax

10

to be evidenced by stamps, which may be affixed only by licensed distributors to the packages

11

containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this

12

chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under

13

this chapter. The tax is at the rate of two hundred twelve and one-half (212.5) two hundred

14

twenty-five (225) mills for each cigarette.

15

     44-20-13. Tax imposed on unstamped cigarettes.

16

     A tax is imposed at the rate of two hundred twelve and one-half (212.5) two hundred

17

twenty-five (225) mills for each cigarette upon the storage or use within this state of any

18

cigarettes not stamped in accordance with the provisions of this chapter in the possession of any

19

consumer within this state.

20

     SECTION 8. Chapter 44-20 of the General Laws entitled “Cigarette and Other Tobacco

21

Products Tax” is hereby amended by adding thereto the following section:

22

     44-20-12.7. Floor stock tax on cigarettes and stamps.

23

     (a) Each person engaging in the business of selling cigarettes at retail in this state shall

24

pay a tax or excise to the state for the privilege of engaging in that business during any part of the

25

calendar year 2018. In calendar year 2018, the tax shall be measured by the number of cigarettes

26

held by the person in this state at 12:01 a.m. on August 1, 2018 and is computed at the rate thirty-

27

seven and one-half (37.5) mills for each cigarette on August 1, 2018.

28

     (b) Each distributor licensed to do business in this state pursuant to this chapter shall pay

29

a tax or excise to the state for the privilege of engaging in that business during any part of the

30

calendar year 2018. The tax is measured by the number of stamps, whether affixed or to be

31

affixed to packages of cigarettes, as required by § 44-20-28. In calendar year 2018 the tax is

32

measured by the number of stamps), whether affixed or to be affixed, held by the distributor at

33

12:01 a.m. on August 1, 2018, and is computed at the rate of thirty-seven and one-half mills per

34

cigarette in the package to which the stamps are affixed or to be affixed.

 

LC003937 - Page 126 of 402

1

     (c) Each person subject to the payment of the tax imposed by this section shall, on or

2

before August 15, 2018, file a return, under oath or certified under the penalties of perjury, with

3

the tax administrator on forms furnished by him or her, showing the amount of cigarettes and the

4

number of stamps in that person's possession in this state at 12:01 a.m. on August 1, 2018, as

5

described in this section above, and the amount of tax due, and shall at the time of filing the

6

return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the

7

failure to make a return containing the information required by the tax administrator.

8

     (d) The tax administrator may prescribe rules and regulations, not inconsistent with law,

9

with regard to the assessment and collection of the tax imposed by this section.

10

     SECTION 9. This Article shall take effect as of July 1, 2018, except for Section 7 and

11

Section 8, which will take effect on August 1, 2018.

12

ARTICLE 5

13

RELATING TO CAPITAL DEVELOPMENT PROGRAM

14

     SECTION 1. Proposition to be submitted to the people. -- At the general election to be

15

held on the Tuesday next after the first Monday in November 2018, there shall be submitted to

16

the people (“People”) of the State of Rhode Island (“State”), for their approval or rejection, the

17

following proposition:

18

     "Shall the action of the general assembly, by an act passed at the January 2018 session,

19

authorizing the issuance of bonds, refunding bonds, and/or temporary notes of the State of Rhode

20

Island for the capital projects and in the amount with respect to each such project listed below be

21

approved, and the issuance of bonds, refunding bonds, and/or temporary notes authorized in

22

accordance with the provisions of said act?"

23

     Project

24

     (1) Rhode Island School Buildings $250,000,000

25

     Approval of this question will allow the State of Rhode Island to issue general obligation

26

bonds, refunding bonds, and/or temporary notes in an amount not to exceed two-hundred-fifty

27

million dollars ($250,000,000) over a five (5) year period, and not to exceed one-hundred million

28

dollars ($100,000,000) in any one (1) year, to provide direct funding for foundational level school

29

housing aid and the school building authority capital fund with the amount of the allocation

30

between the two (2) programs to be determined by the School Building Authority as designated in

31

Chapter 105, Title 16 of the General Laws.

32

     (2) Higher Education Facilities $70,000,000

33

     Approval of this question will allow the State of Rhode Island to issue general obligation

34

bonds, refunding bonds, and/or temporary notes in an amount not to exceed seventy million

 

LC003937 - Page 127 of 402

1

dollars ($70,000,000) to higher education facilities, to be allocated as follows:

2

     (a) University of Rhode Island Narragansett Bay Campus $45,000,000

3

     Provides forty-five million dollars ($45,000,000) to fund repairs and construct new

4

facilities on the University of Rhode Island’s Narragansett Bay campus in support of the

5

educational and research needs for the marine disciplines.

6

     (b) Rhode Island College School of Education and Human Development $25,000,000

7

     Provides twenty-five million dollars ($25,000,000) to fund the renovation of Horace

8

Mann Hall on the campus of Rhode Island College, which houses the School of Education and

9

Human Development.

10

     (3) Green Economy and Clean Water $48,500,000

11

     Approval of this question will allow the State of Rhode Island to issue general obligation

12

bonds, refunding bonds, and/or temporary notes in an amount not to exceed forty-eight million

13

five hundred thousand dollars ($48,500,000) for environmental and recreational purposes, to be

14

allocated as follows:

15

     (a) Coastal Resiliency and Public Access Projects $5,000,000

16

     Provides five million dollars ($5,000,000) for up to seventy-five percent (75%) matching

17

grants to public and non-profit entities for restoring and/or improving resiliency of vulnerable

18

coastal habitats, and restoring rivers and stream floodplains. These funds are expected to leverage

19

significant matching funds to support local programs to improve community resiliency and public

20

safety in the face of increased flooding, major storm events, and environmental degradation.

21

     (b) Capital for Clean Water and Drinking Water $6,100,000

22

     Provides six million one hundred thousand dollars ($6,100,000) for clean water and

23

drinking water infrastructure improvements. Projects range from wastewater treatment upgrades

24

and storm water quality improvements to combine sewer overflow abatement projects.

25

     (c) Wastewater Treatment Facility Resilience Improvements $5,000,000

26

     Provides five million dollars ($5,000,000) for up to fifty percent (50%) matching grants

27

for wastewater treatment facility resiliency improvements for facilities vulnerable to increased

28

flooding, major storm events and environmental degradation.

29

     (d) Dam Safety $4,400,000

30

     Provides four million four hundred thousand dollars ($4,400,000) for repairing and/or

31

removing state-owned dams.

32

     (e) State Recreation Projects Program $10,000,000

33

     Provides ten million dollars ($10,000,000) for capital improvements to state recreational

34

facilities, including Fort Adams State Park.

 

LC003937 - Page 128 of 402

1

     (f) State Bikeway Development Program $5,000,000

2

     Provides five million dollars ($5,000,000) for the State to design, repair, and construct

3

bikeways, including the East Bay bike path.

4

     (g) Brownfield Remediation and Economic Development $4,000,000

5

     Provides four million dollars ($4,000,000) for up to eighty percent (80%) matching grants

6

to public, private, and/or non-profit entities for brownfield remediation projects.

7

     (h) Local Recreation Projects $5,000,000

8

     Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

9

for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the

10

growing needs for active recreational facilities.

11

     (i) Access to Farmland $2,000,000

12

     Provides two million dollars ($2,000,000) to protect the State’s working farms through

13

the State Farmland Access Program and the purchase of Development Rights by the Agricultural

14

Lands Preservation Commission

15

     (j) Local Open Space $2,000,000

16

     Provides two million dollars ($2,000,000) for up to fifty percent (50%) matching grants

17

to municipalities, local land trusts and nonprofit organizations to acquire fee-simple interest,

18

development rights, or conservation easements on open space and urban parklands.

19

     SECTION 2. Ballot labels and applicability of general election laws. -- The Secretary

20

of State shall prepare and deliver to the State Board of Elections ballot labels for each of the

21

projects provided for in Section 1 hereof with the designations "approve" or "reject" provided

22

next to the description of each such project to enable voters to approve or reject each such

23

proposition. The general election laws, so far as consistent herewith, shall apply to this

24

proposition.

25

     SECTION 3. Approval of projects by people. -- If a majority of the People voting on

26

the proposition in Section 1 hereof shall vote to approve any project stated therein, said project

27

shall be deemed to be approved by the People. The authority to issue bonds, refunding bonds

28

and/or temporary notes of the State shall be limited to the aggregate amount for all such projects

29

as set forth in the proposition, which has been approved by the People.

30

     SECTION 4. Bonds for capital development program. -- The General Treasurer is

31

hereby authorized and empowered, with the approval of the Governor, and in accordance with the

32

provisions of this Act to issue capital development bonds in serial form, in the name of and on

33

behalf of the State of Rhode Island, in amounts as may be specified by the Governor in an

34

aggregate principal amount not to exceed the total amount for all projects approved by the People

 

LC003937 - Page 129 of 402

1

and designated as "capital development loan of 2018 bonds." Provided, however, that the

2

aggregate principal amount of such capital development bonds and of any temporary notes

3

outstanding at any one time issued in anticipation thereof pursuant to Section 7 hereof shall not

4

exceed the total amount for all such projects approved by the People. All provisions in this Act

5

relating to "bonds" shall also be deemed to apply to "refunding bonds."

6

     Capital development bonds issued under this Act shall be in denominations of one

7

thousand dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency

8

of the United States which at the time of payment shall be legal tender for public and private

9

debts. These capital development bonds shall bear such date or dates, mature at specified time or

10

times, but not mature beyond the end of the twentieth (20th) State fiscal year following the fiscal

11

year in which they are issued; bear interest payable semi-annually at a specified rate or different

12

or varying rates: be payable at designated time or times at specified place or places; be subject to

13

express terms of redemption or recall, with or without premium; be in a form, with or without

14

interest coupons attached; carry such registration, conversion, reconversion, transfer, debt

15

retirement, acceleration and other provisions as may be fixed by the General Treasurer, with the

16

approval by the Governor, upon each issue of such capital development bonds at the time of each

17

issue. Whenever the Governor shall approve the issuance of such capital development bonds, the

18

Governor’s approval shall be certified to the Secretary of State; the bonds shall be signed by the

19

General Treasurer and countersigned by Secretary of State and shall bear the seal of the State.

20

The signature approval of the Governor shall be endorsed on each bond.

21

     SECTION 5. Refunding bonds for 2018 capital development program. -- The General

22

Treasurer is hereby authorized and empowered, with the approval of the Governor, and in

23

accordance with the provisions of this Act, to issue bonds to refund the 2018 capital development

24

program bonds, in the name of and on behalf of the state, in amounts as may be specified by the

25

Governor in an aggregate principal amount not to exceed the total amount approved by the

26

People, to be designated as "capital development program loan of 2018 refunding bonds"

27

(hereinafter "Refunding Bonds").

28

     The General Treasurer with the approval of the Governor shall fix the terms and form of

29

any Refunding Bonds issued under this Act in the same manner as the capital development bonds

30

issued under this Act, except that the Refunding Bonds may not mature more than twenty (20)

31

years from the date of original issue of the capital development bonds being refunded.

32

     The proceeds of the Refunding Bonds, exclusive of any premium and accrual interest and

33

net the underwriters’ cost, and cost of bond insurance, shall, upon their receipt, be paid by the

34

General Treasurer immediately to the paying agent for the capital development bonds which are

 

LC003937 - Page 130 of 402

1

to be called and prepaid. The paying agent shall hold the Refunding Bond proceeds in trust until

2

they are applied to prepay the capital development bonds. While such proceeds are held in trust,

3

the proceeds may be invested for the benefit of the State in obligations of the United States of

4

America or the State of Rhode Island.

5

     If the General Treasurer shall deposit with the paying agent for the capital development

6

bonds the proceeds of the Refunding Bonds, or proceeds from other sources, amounts that, when

7

invested in obligations of the United States or the State of Rhode Island, are sufficient to pay all

8

principal, interest, and premium, if any, on the capital development bonds until these bonds are

9

called for prepayment, then such capital development bonds shall not be considered debts of the

10

State of Rhode Island for any purpose starting from the date of deposit of such moneys with the

11

paying agent. The Refunding Bonds shall continue to be a debt of the State until paid.

12

     The term "bond" shall include "note," and the term "refunding bonds" shall include

13

"refunding notes" when used in this Act.

14

     SECTION 6. Proceeds of capital development program. -- The General Treasurer is

15

directed to deposit the proceeds from the sale of capital development bonds issued under this Act,

16

exclusive of premiums and accrued interest and net the underwriters’ cost, and cost of bond

17

insurance, in one or more of the depositories in which the funds of the State may be lawfully kept

18

in special accounts (hereinafter cumulatively referred to as "such capital development bond

19

fund") appropriately designated for each of the projects set forth in Section 1 hereof which shall

20

have been approved by the People to be used for the purpose of paying the cost of all such

21

projects so approved.

22

     All monies in the capital development bond fund shall be expended for the purposes

23

specified in the proposition provided for in Section 1 hereof under the direction and supervision

24

of the Director of Administration (hereinafter referred to as "Director"). The Director or his or her

25

designee shall be vested with all power and authority necessary or incidental to the purposes of

26

this Act, including but not limited to, the following authority: (a) to acquire land or other real

27

property or any interest, estate or right therein as may be necessary or advantageous to

28

accomplish the purposes of this Act; (b) to direct payment for the preparation of any reports,

29

plans and specifications, and relocation expenses and other costs such as for furnishings,

30

equipment designing, inspecting and engineering, required in connection with the implementation

31

of any projects set forth in Section 1 hereof; (c) to direct payment for the costs of construction,

32

rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other

33

improvements to land in connection with the implementation of any projects set forth in Section 1

34

hereof; and (d) to direct payment for the cost of equipment, supplies, devices, materials and labor

 

LC003937 - Page 131 of 402

1

for repair, renovation or conversion of systems and structures as necessary for the 2018 capital

2

development program bonds or notes hereunder from the proceeds thereof. No funds shall be

3

expended in excess of the amount of the capital development bond fund designated for each

4

project authorized in Section 1 hereof. With respect to the bonds and temporary notes described

5

in Section 1, the proceeds shall be used for the following purposes:

6

     Question 1, relating to bonds in the amount of two hundred-fifty million dollars

7

($250,000,000) to provide funding for the construction, renovation, and rehabilitation of the

8

state’s public schools.

9

     Question 2, relating to bonds in the amount of seventy million dollars ($70,000,000) to

10

provide funding for higher education facilities to be allocated as follows:

11

     (a) Rhode Island College School of Education and Human Development $25,000,000

12

     Provides twenty-five million dollars ($25,000,000) to renovate Horace Mann Hall on the

13

campus of Rhode Island College in Providence. Horace Mann Hall houses the Feinstein School of

14

Education and Human Development, the historical leader in producing Rhode Island’s public

15

school teachers. The facility has exceeded its useful life with no major renovations since it was

16

constructed in 1969. The renovation will allow the Feinstein School of Education and Human

17

Development to ensure its curriculum and programming are among the best in the nation and

18

create a top learning environment for students.

19

     (b) University of Rhode Island Narragansett Bay Campus $45,000,000

20

     Provides forty-five million dollars ($45,000,000) to renovate, build additions, and

21

construct new facilities, including a new Ocean Innovation Center building, to support the

22

ongoing and evolving educational and research needs in marine biology, oceanography, oceanic

23

instrumentation and other marine disciplines at the Narragansett Bay Campus. Constructing new

24

facilities will allow the University to accommodate a new one hundred twenty-five million

25

dollars ($125,000,000) National Science Foundation federal research vessel and other University-

26

supported research vessels at the University’s Narragansett Bay campus facilities.

27

     Question 3, relating to bonds in the amount of exceed forty-eight million five hundred

28

thousand dollars ($48,500,000) for environmental and recreational purposes, to be allocated as

29

follows:

30

     (a) Coastal Resiliency and Public Access Projects $5,000,000

31

     Provides five million dollars ($5,000,000) for up to seventy-five percent (75%) matching

32

grants to public and non-profit entities for restoring and/or improving resiliency of vulnerable

33

coastal habitats, and restoring rivers and stream floodplains.

34

     (b) Capital for Clean Water and Drinking Water $6,100,000

 

LC003937 - Page 132 of 402

1

     Provides six million one hundred thousand dollars ($6,100,000) for clean water and

2

drinking water infrastructure improvements such as from wastewater treatment upgrades and

3

storm water quality improvements to combined sewer overflow abatement projects.

4

     (c) Wastewater Treatment Facility Resilience Improvements $5,000,000

5

     Provides five million dollars ($5,000,000) for up to fifty percent (50%) matching grants

6

for wastewater treatment facility resiliency improvements for facilities vulnerable to increased

7

flooding, major storm events, and environmental degradation.

8

     (d) Dam Safety $4,400,000

9

     Provides four million four hundred thousand dollars ($4,400,000) for repairing and/or

10

removing State-owned dams.

11

     (e) State Recreation Projects Program $10,000,000

12

     Provides ten million dollars ($10,000,000) for capital improvements to State recreational

13

facilities, including Fort Adams State Park.

14

     (f) State Bikeway Development Program $5,000,000

15

     Provides five million dollars ($5,000,000) for the State to design, repair, and construct

16

bikeways, including the East Bay bike path.

17

     (g) Brownfield Remediation and Economic Development $4,000,000

18

     Provides four million dollars ($4,000,000) for up to eighty percent (80%) matching grants

19

to public, private, and/or non-profit entities for brownfield remediation projects.

20

     (h) Local Recreation Projects $5,000,000

21

     Provides five million dollars ($5,000,000) for up to eighty percent (80%) matching grants

22

for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the

23

growing needs for active recreational facilities.

24

     (i) Access to Farmland $2,000,000

25

     Provides two million dollars ($2,000,000) to protect the State’s working farms through

26

the State Farmland Access Program and the purchase of Development Rights by the Agricultural

27

Lands Preservation Commission

28

     (j) Local Open Space $2,000,000

29

     Provides two million dollars ($2,000,000) for up to fifty percent (50%) matching grants

30

to municipalities, local land trusts and nonprofit organizations to acquire fee-simple interest,

31

development rights, or conservation easements on open space and urban parklands.

32

     SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority

33

of this Act shall be sold at not less than the principal amount thereof, in such mode and on such

34

terms and conditions as the General Treasurer, with the approval of the Governor, shall deem to

 

LC003937 - Page 133 of 402

1

be in the best interests of the State.

2

     Any premiums and accrued interest, net of the cost of bond insurance and underwriter’s

3

discount, which may be received on the sale of the capital development bonds or notes shall

4

become part of the Rhode Island Capital Plan Fund of the State, unless directed by federal law or

5

regulation to be used for some other purpose.

6

     In the event that the amount received from the sale of the capital development bonds or

7

notes exceeds the amount necessary for the purposes stated in Section 6 hereof, the surplus may

8

be used to the extent possible to retire the bonds as the same may become due, to redeem them in

9

accordance with the terms thereof or otherwise to purchase them as the General Treasurer, with

10

the approval of the Governor, shall deem to be in the best interests of the state.

11

     Any bonds or notes issued under the provisions of this Act and coupons on any capital

12

development bonds, if properly executed by the manual or electronic signatures of officers of the

13

State in office on the date of execution, shall be valid and binding according to their tenor,

14

notwithstanding that before the delivery thereof and payment therefor, any or all such officers

15

shall for any reason have ceased to hold office.

16

     SECTION 8. Bonds and notes to be tax exempt and general obligations of the State. -

17

- All bonds and notes issued under the authority of this Act shall be exempt from taxation in the

18

State and shall be general obligations of the State, and the full faith and credit of the State is

19

hereby pledged for the due payment of the principal and interest on each of such bonds and notes

20

as the same shall become due.

21

     SECTION 9. Investment of moneys in fund. -- All moneys in the capital development

22

fund not immediately required for payment pursuant to the provisions of this act may be invested

23

by the investment commission, as established by Chapter 10 of Title 35, entitled “State

24

Investment Commission,” pursuant to the provisions of such chapter; provided, however, that the

25

securities in which the capital development fund is invested shall remain a part of the capital

26

development fund until exchanged for other securities; and provided further, that the income from

27

investments of the capital development fund shall become a part of the general fund of the State

28

and shall be applied to the payment of debt service charges of the State, unless directed by federal

29

law or regulation to be used for some other purpose, or to the extent necessary, to rebate to the

30

United States treasury any income from investments (including gains from the disposition of

31

investments) of proceeds of bonds or notes to the extent deemed necessary to exempt (in whole or

32

in part) the interest paid on such bonds or notes from federal income taxation.

33

     SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not

34

otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and

 

LC003937 - Page 134 of 402

1

notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise

2

appropriated.

3

     SECTION 11. Advances from general fund. -- The General Treasurer is authorized,

4

with the approval of the Director and the Governor, in anticipation of the issue of notes or bonds

5

under the authority of this Act, to advance to the capital development bond fund for the purposes

6

specified in Section 6 hereof, any funds of the State not specifically held for any particular

7

purpose; provided, however, that all advances made to the capital development bond fund shall be

8

returned to the general fund from the capital development bond fund forthwith upon the receipt

9

by the capital development fund of proceeds resulting from the issue of notes or bonds to the

10

extent of such advances.

11

     SECTION 12. Federal assistance and private funds. -- In carrying out this act, the

12

Director, or his or her designee, is authorized on behalf of the State, with the approval of the

13

Governor, to apply for and accept any federal assistance which may become available for the

14

purpose of this Act, whether in the form of loan or grant or otherwise, to accept the provision of

15

any federal legislation therefor, to enter into, act and carry out contracts in connection therewith,

16

to act as agent fSor the federal government in connection therewith, or to designate a subordinate

17

so to act. Where federal assistance is made available, the project shall be carried out in

18

accordance with applicable federal law, the rules and regulations thereunder and the contract or

19

contracts providing for federal assistance, notwithstanding any contrary provisions of State law.

20

Subject to the foregoing, any federal funds received for the purposes of this Act shall be

21

deposited in the capital development bond fund and expended as a part thereof. The Director or

22

his or her designee may also utilize any private funds that may be made available for the purposes

23

of this Act.

24

     SECTION 13. Effective Date. -- Sections 1, 2, 3, 11 and 12 of this article shall take

25

effect upon passage. The remaining sections of this article shall take effect when and if the State

26

Board of Elections shall certify to the Secretary of State that a majority of the qualified electors

27

voting on the proposition contained in Section 1 hereof have indicated their approval of all or any

28

projects thereunder.

29

ARTICLE 6

30

RELATING TO LICENSING

31

     SECTION 1. Section 3-5-18 of the General Laws in Chapter 3-5 entitled “Licenses

32

Generally” is hereby amended to read as follows:

33

     3-5-18. Signature on licenses – Posting and exhibition. 

34

     (a) All retail licenses issued under chapter 7 of this title shall bear the signature written by

 

LC003937 - Page 135 of 402

1

hand, or electronic signature, of the clerk of the licensing board, body, or officials issuing them,

2

and shall not be printed, stamped, typewritten, engraved, photographed or cut from one

3

instrument and attached to another and shall be displayed by the licensee, on the premises and

4

shall be exhibited on demand to any deputy sheriff, to any city or town sergeant, constable,

5

officer or member of the city or town police or to any member of the department of state police or

6

agent of the department.

7

     (b) All retail licenses shall be displayed within the premises but need not be posted. The

8

license shall be exhibited to any deputy sheriff of the county, to any city or town sergeant,

9

constable, officer or member of the city or town police or to any member of the department of

10

state police or agent of the department who request proof that the establishment is duly licensed. 

11

     SECTION 2. Section 3-6-13 of the General Laws in Chapter 3-6 entitled “Manufacturing

12

and Wholesale Licenses” is hereby repealed.

13

     3-6-13. License bonds to state. 

14

     As conditions precedent to the issuance by the department of any manufacturer's license,

15

rectifier's license, wholesaler's Class A license, wholesaler's Class B license, and wholesaler's

16

Class C license under the provisions of this chapter, the person applying for a license shall give

17

bond to the general treasurer of the state in a penal sum in the amount that the department of

18

business regulation requests with at least two (2) resident sureties satisfactory to the department

19

of business regulation, or a surety company authorized to do business in this state as surety,

20

which bond shall be on condition that the licensee will not violate, or suffer to be violated, on any

21

licensed premises under his or her control any of the provisions of this chapter or of chapter 5 of

22

this title or of chapters 10, 34, or 45 of title 11 or §§ 11-2-1, 11-9-13, 11-9-15, 11-11-5, 11-18-2 –

23

11-18-4, 11-20-1, 11-20-2, 11-23-4, 11-31-1 or 11-37-2 – 11-37-4 and on condition that the

24

licensee will pay all costs and damages incurred by any violation of any of those chapters or

25

sections and shall also pay to the division of taxation the license fee required by this chapter. 

26

     SECTION 3. Sections 3-6-1, 3-6-1.2, 3-6-3, 3-6-9, 3-6-10, 3-6-11, 3-6-12 of the General

27

Laws in Chapter 3-6 entitled “Manufacturing and Wholesale Licenses” are hereby amended to

28

read as follows:

29

     3-6-1. Manufacturer's license. 

30

     (a) A manufacturer's license authorizes the holder to establish and operate a brewery,

31

distillery, or winery at the place described in the license for the manufacture of beverages within

32

this state. The license does not authorize more than one of the activities of operator of a brewery

33

or distillery or winery and a separate license shall be required for each plant.

34

     (b) The license also authorizes the sale at wholesale, at the licensed place by the

 

LC003937 - Page 136 of 402

1

manufacturer of the product of the licensed plant, to another license holder and the transportation

2

and delivery from the place of sale to a licensed place or to a common carrier for that delivery.

3

The license does authorize the sale of beverages for consumption on premises where sold;

4

provided that the manufacturer does not sell an amount in excess of thirty-six ounces (36 oz.) of

5

malt beverage or four and one-half ounces (4.5 oz.) of distilled spirits per visitor, per day, or a

6

combination not greater than three (3) drinks where a drink is defined as twelve ounces (12 oz.)

7

of beer or one and one-half ounces (1.5 oz.) of spirits, for consumption on the premises. The

8

license also authorizes the sale of beverages produced on the premises in an amount not in excess

9

of two hundred eighty-eight ounces (288 oz.) of malt beverages, or seven hundred fifty milliliters

10

(750 ml) of distilled spirits per visitor, per day, to be sold in containers that may hold no more

11

than seventy-two ounces (72 oz.) each. These beverages may be sold to the consumers for off-

12

premises consumption, and shall be sold pursuant to the laws governing retail Class A

13

establishments. The containers for the sale of beverages for off-premises consumption shall be

14

sealed. The license does not authorize the sale of beverages in this state for delivery outside this

15

state in violation of the law of the place of delivery. The license holder may provide to visitors, in

16

conjunction with a tour and/or tasting, samples, clearly marked as samples, not to exceed three

17

hundred seventy-five milliliters (375 ml) per visitor for distilled spirits and seventy-two ounces

18

(72 oz.) per visitor for malt beverages at the licensed plant by the manufacturer of the product of

19

the licensed plant to visitors for off-premises consumption. The license does not authorize

20

providing samples to a visitor of any alcoholic beverages for off-premises consumption that are

21

not manufactured at the licensed plant.

22

     (c) The annual fee for the license is three thousand dollars ($3,000) for a distillery

23

producing more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) for

24

a distillery producing less than or equal to fifty thousand (50,000) gallons per year; five hundred

25

dollars ($500) for a brewery; and one thousand five hundred dollars ($1,500) for a winery

26

producing more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) per

27

year for a winery producing less than fifty thousand (50,000) gallons per year. All those fees are

28

prorated to the year ending December 1 in every calendar year and shall be paid to the division of

29

taxation and be turned over to the general treasurer for the use of the state.

30

     3-6-1.2. Brewpub manufacturer's license. 

31

     (a) A brewpub manufacturer's license shall authorize the holder to establish and operate a

32

brewpub within this state. The brewpub manufacturer's license shall authorize the retail sale of

33

the beverages manufactured on the location for consumption on the premises. The license shall

34

not authorize the retail sale of beverages from any location other than the location set forth in the

 

LC003937 - Page 137 of 402

1

license. A brewpub may sell at retail alcoholic beverages produced on the premises by the half-

2

gallon bottle known as a "growler" to consumers for off the premises consumption to be sold

3

pursuant to the laws governing retail Class A establishments.

4

     (b) The license shall also authorize the sale at wholesale at the licensed place by the

5

manufacturer of the product of his or her licensed plant as well as beverages produced for the

6

brewpub and sold under the brewpub's name to a holder of a wholesaler's license and the

7

transportation and delivery from the place of sale to the licensed wholesaler or to a common

8

carrier for that delivery.

9

     (c) The brewpub manufacturer's license further authorizes the sale of beverages

10

manufactured on the premises to any person holding a valid wholesaler's and importer's license

11

under § 3-6-9 or 3-6-11.

12

     (d) The annual fee for the license is one thousand dollars ($1,000) for a brewpub

13

producing more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) per

14

year for a brewpub producing less than fifty thousand (50,000) gallons per year. The annual fee is

15

prorated to the year ending December 1 in every calendar year and paid to the division of taxation

16

and turned over to the general treasurer for the use of the state. 

17

     3-6-3. Rectifier's license. 

18

     The department is authorized to issue rectifiers' licenses in accordance with the

19

provisions of §§ 3-6-4 – 3-6-8. The fee provided shall be prorated to the year ending December 1

20

in every calendar year and be paid to the division of taxation and turned over to the general

21

treasurer for the use of the state. 

22

     3-6-9. Wholesaler's license – Class A. 

23

     A wholesaler's license, Class A, authorizes the holder to keep for sale and to sell malt

24

beverages and wines at wholesale at the place described to holders of licenses under this title

25

within this state and to holders of wholesale licenses in other states and the transportation and

26

delivery from the place of sale to those license holders or to a common carrier for that delivery.

27

Sales by a wholesaler in this state to a holder of a wholesale license in another state shall be only

28

to a wholesaler who is a distributor of the same brand of malt beverages or wines subject to

29

permission by the department. The license shall not authorize the sale of malt beverages or wines

30

for consumption on the premises where sold nor their sale for their delivery outside this state in

31

violation of the law of the place of delivery. The annual fee for the license is two thousand dollars

32

($2,000) prorated to the year ending December 1 in every calendar year, and shall be paid to the

33

division of taxation and turned over to the general treasurer for the use of the state. Whenever any

34

malt beverages or wines are sold outside the state pursuant to this section, refunds or credits of

 

LC003937 - Page 138 of 402

1

import fees previously paid on those malt beverages or wines shall be made to holders of

2

wholesaler's licenses under this title in accordance with regulations promulgated by the division

3

of taxation. 

4

     3-6-10. Wholesaler's license – Class B. 

5

     (a) A wholesaler's license, Class B, authorizes the holder to keep for sale and to sell malt

6

and vinous beverages and distilled spirits at wholesale, at the place described in the license, to

7

holders of licenses under this title within this state and to holders of wholesale licenses in other

8

states and authorizes the transportation and delivery from the place of sale to those license

9

holders or to a common carrier for that delivery. Sales by a wholesaler in this state to a holder of

10

a wholesale license in another state shall be only to a wholesaler who is a distributor of the same

11

brand of malt beverages, vinous beverages, and distilled spirits subject to permission by the state

12

liquor control administrator. The license shall not authorize the sale of beverages for consumption

13

on the premises where sold nor the sale of beverages for delivery outside this state in violation of

14

the law of the place of delivery.

15

     (b) The annual fee for the license is four thousand dollars ($4,000) prorated to the year

16

ending December 1 in every calendar year, and shall be paid to the division of taxation and turned

17

over to the general treasurer for the use of the state whenever any malt beverages, vinous

18

beverages, and distilled spirits are sold outside the state pursuant to this section. Refunds or

19

credits of import fees previously paid on malt beverages, vinous beverages and distilled spirits

20

shall be made to holders of wholesaler's licenses under this title in accordance with regulations

21

promulgated by the division of taxation. 

22

     3-6-11. Wholesaler's Class C license. 

23

     A wholesaler's Class C license authorizes the holder to manufacture, transport, import,

24

export, deliver, and sell alcohol for mechanical, manufacturing, medicinal, or chemical purposes

25

only, or to any registered pharmacist, licensed pharmacy, drug store, or apothecary shop, or to

26

any registered physician or dentist, or to any hospital or educational or scientific institution, for

27

use other than beverage purposes. The annual fee for the license is two hundred dollars ($200)

28

and shall be paid to the division of taxation and turned over to the general treasurer for the use of

29

the state. 

30

     3-6-12. Agents' licenses. 

31

     Any person who represents a distillery, winery, or brewery is deemed and taken to be

32

acting as an agent for and on behalf of that distillery, winery, or brewery, and is required to have

33

received from the department a license to act as an agent. The annual fee for that license is fifty

34

dollars ($50.00) paid to the division of taxation. The department may, after notice, suspend or

 

LC003937 - Page 139 of 402

1

revoke any license for cause. 

2

     SECTION 4. Section 3-7-15 of the General Laws in Chapter 3-7 entitled “Retail

3

Licenses” is hereby amended to read as follows:

4

     3-7-15. Class G license.

5

     (a) A Class G retailer's license shall be issued only to any dining car company, sleeping

6

car company, parlor car company, and railroad company operating in this state, or any company

7

operating passenger carrying marine vessels in this state, or any airline operating in this state, and

8

authorizes the holder of the license to keep for sale and to sell in its dining cars, sleeping cars,

9

buffet cars, club cars, lounge cars and any other cars used for the transportation or

10

accommodation of passengers, and in or on any passenger-carrying marine vessel, and in any

11

airplane, beverages for consumption therein or thereon, but only when actually en route.

12

     (b) In addition, the holder of the Class G license for a passenger-carrying marine vessel

13

may serve alcoholic beverages at retail aboard the vessel during the period thirty (30) minutes

14

prior to the scheduled departure and until departure, provided that the local licensing board

15

annually consents.

16

     (c) Each company or airline to which the license is issued shall pay to the department an

17

annual fee of two hundred fifty dollars ($250) for the license, and one dollar ($1.00) for each

18

duplicate of the license, which fees are paid into the state treasury.

19

     (d) The license expires one year from its date and is good throughout the state as a state

20

license, and only one license is required for all cars or airplanes, but a license issued to any

21

company or person operating passenger-carrying marine vessels in this state shall authorize the

22

sale of beverages only in the passenger-carrying marine vessel designated and no further license

23

shall be required or tax levied by any city or town for the privilege of selling beverages for

24

consumption in those cars or on those vessels or in those airplanes. Each licensed dining car

25

company, sleeping car company, and railroad car company shall keep a duplicate of the license

26

posted in each car where beverages are sold. The department shall issue duplicates of the license

27

from time to time upon the request of any licensed company upon the payment of the fee of one

28

dollar ($1.00).

29

     SECTION 5. Sections 5-10-16 and 5-10-33 of General Laws in Chapter 5-10 entitled

30

“Barbers, Hairdressers, Cosmeticians, Manicurists and Estheticians” are hereby repealed.

31

     5-10-16. Application of zoning laws. 

32

     The practice of barbering, manicuring and/or hairdressing, and cosmetic therapy shall be

33

considered a business under the zoning laws of the several cities and towns, and licenses are

34

issued only in compliance with the zoning laws of the city or town in which the shop, place of

 

LC003937 - Page 140 of 402

1

business, or establishment is located. 

2

     5-10-33. Payment of fees.

3

     All fees that are required to be paid under the provisions of this chapter shall be paid to

4

the department of health and deposited as general revenues.

5

     SECTION 6. Sections 5-10-1, 5-10-2, 5-10-4, 5-10-8, 5-10-9, 5-10-9.1, 5-10-10, 5-10-11,

6

5-10-15, 5-10-23, 5-10-25, 5-10-28, 5-10-32, and 5-10-39 of the General Laws in Chapter 5-10-

7

entitled “Barbers, Hairdressers, Cosmeticians, Manicurists and Estheticians” are hereby amended

8

to read as follows:

9

     5-10-1. Definitions.

10

     The following words and phrases, when used in this chapter, are construed as follows:

11

     (1) "Apprentice barber" means an employee whose principal occupation is service with a

12

barber who has held a current license as a barber for at least three (3) years with a view to

13

learning the art of barbering, as defined in subdivision (15) of this section.

14

     (2) "Barber" means any person who shaves or trims the beard; waves, dresses, singes,

15

shampoos, or dyes the hair; or applies hair tonics, cosmetic preparations, antiseptics, powders, oil

16

clays, or lotions to scalp, face, or neck of any person; or cuts the hair of any person; gives facial

17

and scalp massages; or treatments with oils, creams, lotions, or other preparations.

18

     (3) "Board" means the state board of barbering and hairdressing as provided for in this

19

chapter.

20

     (4) "Department" means the Rhode Island department of health business regulation.

21

     (5) "Division" means the division of professional regulation commercial licensing within

22

the department of health business regulation.

23

     (6) "Esthetician" means a person who engages in the practice of esthetics, and is licensed

24

as an esthetician.

25

     (7) "Esthetician shop" means a shop licensed under this chapter to do esthetics of any

26

person.

27

     (8) "Esthetics" means the practice of cleansing, stimulating, manipulating, and

28

beautifying skin, including, but not limited to, the treatment of such skin problems as

29

dehydration, temporary capillary dilation, excessive oiliness, and clogged pores.

30

     (9) "Hair design shop" means a shop licensed under this chapter to do barbering or

31

hairdressing/cosmetology, or both, to any person.

32

     (10) "Hairdresser and cosmetician" means any person who arranges, dresses, curls, cuts,

33

waves, singes, bleaches, or colors the hair or treats the scalp, or manicures the nails of any person,

34

either with or without compensation, or who, by the use of the hands or appliances, or of cosmetic

 

LC003937 - Page 141 of 402

1

preparations, antiseptics, tonics, lotions, creams, powders, oils or clays, engages, with or without

2

compensation, in massaging, cleansing, stimulating, manipulating, exercising, or beautifying, or

3

in doing similar work upon the neck, face, or arms, or who removes superfluous hair from the

4

body of any person.

5

     (11) "Instructor" means any person licensed as an instructor under the provisions of this

6

chapter.

7

     (12) "Manicuring shop" means a shop licensed under this chapter to do manicuring only

8

on the nails of any person.

9

     (13) "Manicurist" means any person who engages in manicuring for compensationand is

10

duly licensed as a manicurist.

11

     (14) "School" means a school approved under chapter 40 of title 16, as amended, devoted

12

to the instruction in, and study of, the theory and practice of barbering, hairdressing, and cosmetic

13

therapy, esthetics, and/or manicuring.

14

     (15) "The practice of barbering" means the engaging by any licensed barber in all, or any

15

combination of, the following practices: shaving or trimming the beard or cutting the hair; giving

16

facial and scalp massages or treatments with oils, creams, lotions, or other preparations, either by

17

hand or mechanical appliances; singeing, shampooing, arranging, dressing, curling, waving,

18

chemical waving, hair relaxing, or dyeing the hair or applying hair tonics; or applying cosmetic

19

preparations, antiseptics, powders, oils, clays, or lotions to scalp, face, or neck.

20

     (16) "The practice of hairdressing and cosmetic therapy" means the engaging by any

21

licensed hairdresser and cosmetician in any one or more of the following practices: the

22

application of the hands or of mechanical or electrical apparatus, with or without cosmetic

23

preparations, tonics, lotions, creams, antiseptics, or clays, to massage, cleanse, stimulate,

24

manipulate, exercise, or otherwise to improve or to beautify the scalp, face, neck, shoulders,

25

arms, bust, or upper part of the body; or the manicuring of the nails of any person; or the

26

removing of superfluous hair from the body of any person; or the arranging, dressing, curling,

27

waving, weaving, cleansing, cutting, singeing, bleaching, coloring, or similarly treating the hair

28

of any person.

29

     (17) "The practice of manicuring" means the cutting, trimming, polishing, tinting,

30

coloring, or cleansing the nails of any person.

31

     5-10-2. Creation of division of professional regulation commercial licensing and board

32

of barbering and hairdressing – Powers and duties.

33

     (a) Within the department of health business regulation there is a division of professional

34

regulation commercial licensing and a board of barbering and hairdressing. The division shall:

 

LC003937 - Page 142 of 402

1

     (1) Approve all written and practical examinations;

2

     (2) Issue all licenses and permits subsequently provided for in this chapter;

3

     (3) Serve as the sole inspector of sanitation of all establishments licensed under this

4

chapter;

5

     (4) Make any rules and regulations that the division deems necessary or expedient, in

6

conformity with the provisions of this chapter and not contrary to law, for the conduct of the

7

business of barbering and hairdressing and cosmetic therapy or esthetics and manicuring, for the

8

use of appliances, apparatus, and electrical equipment and machines and the establishment of

9

sanitary requirements in all establishments and of all persons licensed under the provisions of this

10

chapter;

11

     (5) Keep a register of all persons and places of business licensed under this chapter;

12

     (6) Keep complete records of all persons and establishments licensed under this chapter;

13

     (7) Summon witnesses and administer oaths; and

14

     (8) Do all things and perform all acts necessary to enforce the provisions of this chapter.

15

     (b) The board of barbering and hairdressing shall have a policy-making role in selection

16

of the examinations. Subsequent to the administration of the examination, the board of examiners

17

shall review the examinations to evaluate their effectiveness. The board shall supervise the

18

operations of provide the division of professional regulation commercial licensing in an advisory

19

capacity advice in promulgating any policy that is necessary to improve the operations of the

20

division in their areas of expertise. The promulgation of that policy is subject to the approval of

21

the director of the department. Members of the board are subject to the provisions of chapter 14

22

of title 36.

23

     5-10-4. Board of barbering and hairdressing – Compensation of members.

24

     No member of the board shall be compensated for his or her services for attendance at

25

meetings of the board, attendance at examinations, but shall be reimbursed by the department of

26

health business regulation for his or her traveling and other expenses incurred in the performance

27

of his or her duties provided in this chapter.

28

     5-10-8. Issuance of licenses – Qualifications of applicants.

29

     (a) The division shall issue licenses to persons engaged in, or desiring to engage in, the

30

practice of barbering, hairdressing and cosmetic therapy and/or manicuring or esthetics and for

31

instructing in any approved school of barbering or hairdressing and cosmetic therapy and

32

manicuring or esthetics; provided, that no license shall be issued to any person under this chapter

33

unless the applicant for the license:

34

     (1) Is at least eighteen (18) years of age;

 

LC003937 - Page 143 of 402

1

     (2) Is a citizen of the United States of America or has legal entry into the country;

2

     (3) Is of good moral character;

3

     (4) Is a high school graduate or holds the equivalent or has twenty-five (25) or more years

4

of prior experience in the practice for which the license is sought;

5

     (5) Has satisfactorily completed the course of instruction in an approved school of

6

barbering, hairdressing and cosmetic therapy and/or manicuring or esthetics;

7

     (6) Has satisfactorily passed a written and a practical examination approved by the

8

division to determine the fitness of the applicant to receive a license; and

9

     (7) Has complied with § 5-10-10 and any other qualifications that the division prescribes

10

by regulation.

11

     (b) Notwithstanding the provision of subdivision (a)(4), on and after July 1, 1997, an

12

applicant seeking licensure as a barber must be a high school graduate or hold the equivalent

13

combination of education and experience.

14

     (c) The division may license, on a case-by-case basis, with or without examination, any

15

individual who has been licensed as an esthetician, barber, cosmetologist, electrologist or

16

manicurist under the laws of another state, which, in the opinion of the division, maintains a

17

standard substantially equivalent to that of the state of Rhode Island. 

18

     5-10-9. Classes of licenses.

19

      Licenses shall be divided into the following classes and shall be issued by the division to

20

applicants for the licenses who have qualified for each class of license:

21

     (1) A "hairdresser's and cosmetician's license" shall be issued by the division to every

22

applicant for the license who meets the requirements of § 5-10-8 and has completed a course of

23

instruction in hairdressing and cosmetology consisting of not less than fifteen hundred (1,500)

24

twelve hundred (1,200) hours of continuous study and practice.

25

     (2) An "instructor's license" shall be granted by the division to any applicant for the

26

license who has held a hairdresser's and cosmetician's license, a barber's license, a manicurist's

27

license, or an esthetician's license, issued under the laws of this state or another state, for at least

28

the three (3) years preceding the date of application for an instructor's license and:

29

     (i) Meets the requirements of § 5-10-8;

30

     (ii) Has satisfactorily completed three hundred (300) hours of instruction in hairdressing

31

and cosmetology, barber, manicurist, or esthetician teacher training approved by the division as

32

prescribed by regulation;

33

     (iii) Has satisfactorily passed a written and a practical examination approved by the

34

division to determine the fitness of the applicant to receive an instructor's license;

 

LC003937 - Page 144 of 402

1

     (iv) Has complied with § 5-10-10; and

2

     (v) Has complied with any other qualifications that the division prescribes by regulation.

3

     (3) A "manicurist license" shall be granted to any applicant for the license who meets the

4

following qualifications:

5

     (i) Meets the requirements of § 5-10-8; and

6

     (ii) Has completed a course of instruction, consisting of not less than three hundred (300)

7

hours of professional training in manicuring, in an approved school.

8

     (4) An "esthetician license" shall be granted to any applicant for the license who meets

9

the following qualifications:

10

     (i) Meets the requirements of § 5-10-8;

11

     (ii) Has completed a course of instruction in esthetics, consisting of not less than six

12

hundred (600) hours of continuous study and practice over a period of not less than four (4)

13

months, in an approved school of hairdressing and cosmetology; and

14

     (iii) Any applicant who holds a diploma or certificate from a skin-care school, that is

15

recognized as a skin-care school by the state or nation in which it is located, and meets the

16

requirements of paragraph (i) of this subdivision (i), shall be granted a license to practice

17

esthetics; provided, that the skin-care school has a requirement that, in order to graduate from the

18

school, a student must have completed a number of hours of instruction in the practice of skin

19

care, which number is at least equal to the number of hours of instruction required by the

20

division.

21

     (5) A "barber" license shall be issued by the division to every applicant for the license

22

who meets the requirements of § 5-10-8 and:

23

     (i) Has completed a course of instruction in barbering consisting of not less than one

24

thousand five hundred (1,500) hours of continuous study and practice in an approved school;

25

     (ii) Has possessed, for at least two (2) years prior to the filing of the application, a

26

certificate of registration in full force and effect from the department of health of the state

27

specifying that person as a registered, apprentice barber, and the application of that applicant is

28

accompanied by an affidavit, or affidavits, from his or her employer, or former employers, or

29

other reasonably satisfactory evidence showing that the applicant has been actually engaged in

30

barbering as an apprentice barber in the state during those two (2) years; or

31

     (iii) A combination of barber school training and apprenticeship training as determined

32

by the rules and regulations prescribed by the division.

33

     5-10-9.1. License portability.

34

     Notwithstanding any general law, special law, public law, or rule or regulation to the

 

LC003937 - Page 145 of 402

1

contrary, any licensed barber, hairdresser, cosmetician, manicurist, or esthetician who operates as

2

an independent contractor at any "hair-design shop" licensed pursuant to § 5-10-15, shall be

3

permitted to relocate, without obtaining a new license, to another licensed, hair-design shop once

4

during the term of their one-year license issued by the department of health business regulation.

5

     5-10-10. Application form – Fee – Expiration and renewal of licenses – Fees.

6

     (a) Applications for licenses under § 5-10-9 shall be made upon any forms that are

7

prescribed by the division and are accompanied by an application fee established in regulation.

8

The license of every person licensed under §§ 5-10-8 and 5-10-9 shall expire on the thirtieth

9

(30th) day of October of every other year following the date of license. This is determined on an

10

odd-even basis. On or before the first day of September of every year, the administrator of

11

professional regulation department shall mail an application for provide notice of renewal of

12

license to people scheduled to be licensed that year on an odd or even basis as to the license

13

number. Every person who wishes to renew his or her license must file with the administrator of

14

professional regulation department a renewal application duly executed together with the renewal

15

fee as set forth in § 23-1-54 by the department. Applications, accompanied by the fee for renewal,

16

shall be filed with the division on or before the fifteenth (15th) day of October in each renewal

17

year. Upon receipt of the application and fee, the administrator of professional regulation

18

department shall grant a renewal license effective October 1st and expiring two (2) years later on

19

September 30th.

20

     (b) Every person who fails to renew his or her license on or before September 30th

21

following the date of issuance as provided in subsection (a) of this section may be reinstated by

22

the division upon payment of the current renewal fee and a late fee as set forth in § 23-1-54 by the

23

department.

24

     (c) The license shall be on the person at all times while performing the services for which

25

they are licensed.

26

     5-10-11. Persons licensed in other states.

27

     (a) Any person licensed to practice barbering, hairdressing, and cosmetic therapy and/or

28

manicuring or esthetics in another state where the requirements are the equivalent of those of this

29

state is entitled to a license as a barber, hairdresser, and cosmetician and/or manicurist or

30

esthetician operator upon the acceptance of his or her credentials by the division; provided, that

31

the state in which that person is licensed extends a similar privilege to licensed barbers,

32

hairdressers, and cosmetic therapists and/or manicurists or esthetics of this state. If a person

33

applies for a hairdressing license who was licensed in another state where the requirements are

34

not equivalent to those of this state, the division shall give to that person one hundred (100) hours

 

LC003937 - Page 146 of 402

1

instructional credit for three (3) months that the person was licensed and in actual practice, up to a

2

limit of five hundred (500) hours, in order for that person to meet the requirements for a

3

hairdressing license in this state as established under the provisions of §§ 5-10-8 and 5-10-9.

4

     (b) If a person applies for a manicurist or esthetician license and is currently licensed in

5

another state, that person may be granted a license if he or she passes the written and practical

6

examinations conducted by the division.

7

     (c) The fee for the application is as set forth in § 23-1-54 by the department; provided,

8

that the provisions of this chapter shall not be construed as preventing persons who have been

9

licensed by examination under the laws of other states of the United States or territories and the

10

District of Columbia from practicing barbering, hairdressing, and cosmetic therapy and/or

11

manicuring or esthetics in this state for a period of three (3) months; provided, that they apply for

12

and are licensed in this state within three (3) months from the commencement of their

13

employment. Nor shall it be construed as prohibiting persons who have been licensed under the

14

laws of another country or territory from practicing barbering, hairdressing, and cosmetic therapy

15

and/or manicuring or esthetics in this state; provided, that practice is in conformity with the rules

16

and regulations of the division; and provided, that in no case shall that practice cover a period of

17

more than three (3) months from the commencement of that employment.

18

     5-10-15. Licensing of shops.

19

     (a) No shop, place of business or establishment shall be opened or conducted within the

20

state by any person, association, partnership, corporation, or otherwise for the practice of

21

barbering, manicuring and/or hairdressing and cosmetic therapy or esthetics until the time that

22

application for a license to operate that shop, place of business or establishment for the practice of

23

manicuring and/or hairdressing and cosmetic therapy or esthetics is made, to the division, in the

24

manner and on the forms that it prescribes, and a license, under the terms and conditions, not

25

contrary to law, that the division requires shall be granted for it and a license issued.

26

     (1) No licenses shall be granted to any shop, place of business, or establishment for the

27

practice of hairdressing and cosmetic therapy unless the proprietor or a supervising manager in

28

the practice of barbering, hairdressing and cosmetic therapy, of the shop, place of business, or

29

establishment is licensed and has been licensed as a licensed barber or hairdresser and

30

cosmetician for a period of at least one year immediately prior to the filing of the application for

31

the license.

32

     (2) No license shall be granted to any shop, place of business, or establishment for the

33

practice of manicuring or esthetics unless the proprietor or a supervising manager of the

34

proprietor is licensed and has been licensed as a licensed barber, hairdresser and cosmetician,

 

LC003937 - Page 147 of 402

1

manicurist or esthetician for a period of at least one year immediately prior to the filing of the

2

application for the license.

3

     (3) The supervising manager shall be registered with the division as the manager of a

4

licensed shop and shall only be registered to manage one shop at a time. The proprietor of the

5

licensed shop and the manager shall notify the division, in writing, within ten (10) days upon the

6

termination of employment as the manager of the licensed shop. The license of the shop shall

7

expire forty-five (45) days after the division is notified by the proprietor if no new manager is

8

registered with the division as the supervising manager of the shop.

9

     (b) All licenses issued under this section shall terminate on the first day of July following

10

the date of issue. The fee for the license is as set forth in § 23-1-54 by the department.

11

     5-10-23. Fixed place of business.

12

     (a) Except as provided in this section, manicuring, esthetics, barbering and/or

13

hairdressing and cosmetic therapy, as defined in this chapter, shall be practiced only in a shop

14

licensed under § 5-10-15. Nothing contained in this chapter shall be construed to prohibit the

15

practice of barbering, manicuring, and hairdressing and cosmetic therapy and esthetics in the

16

same shop or place of business.

17

     (b) Nothing in this section shall restrict a hairdresser licensed pursuant to this chapter,

18

operating in a licensed nursing service agency, from providing services to an individual who is

19

homebound at their home. For purposes of this section, "homebound" is defined as any person

20

who is considered housebound for purpose of federal Medicare eligibility.

21

     (c) Nothing in this section shall restrict any person licensed pursuant to this chapter from

22

providing services to an individual who is homebound at their home as verified by a licensed

23

health care professional.

24

     (d) Nothing in this section shall restrict or prohibit any person licensed pursuant to this

25

chapter from providing services to an individual residing in any Department of Housing and

26

Urban Development (H.U.D.) recognized housing for the elderly in the H.U.D. recognized

27

housing in which the individual resides. Those services shall be provided in a separate room

28

inspected by the department of health business regulation. Students enrolled in programs of

29

hairdressing, barbering and/or cosmetology are prohibited in H.U.D. recognized housing.

30

     (e) Nothing in this section shall restrict or prohibit any person licensed pursuant to this

31

chapter from providing services to an individual outside a licensed shop as part of a special

32

occasion event, such as a wedding or prom, so long as those services are limited to hair styling

33

and makeup, and the health and sanitation standards expected of licensees in licensed shops are

34

followed.

 

LC003937 - Page 148 of 402

1

     5-10-25. Inspection powers of the division – Denial of access. 

2

     Any person employed, authorized and empowered by the division of professional

3

regulation may enter any shop, place of business, or establishment licensed under the provisions

4

of this chapter during the hours the shop, place of business, establishment, or school of barbering,

5

manicuring, or hairdressing and cosmetic therapy is open for business, for the purpose of

6

inspecting its sanitary conditions and ascertaining if the provisions of this chapter and the rules

7

and regulations for the practice of barbering, hairdressing, and cosmetic therapy as established by

8

the division are being observed in the operation of that shop or place of business, and failure or

9

refusal of the person in charge of that shop, place of business, establishment, or school to permit

10

inspection at all reasonable times is deemed sufficient cause for the revocation of any license

11

issued to that shop, place of business, or establishment and any certificate of approval issued by

12

the division. 

13

     5-10-28. Appeals.

14

     Any person aggrieved by any decision or ruling of the division may appeal it to the

15

administrator of the division or his or her designee. A further appeal may then be made to the

16

appropriate board of examiners. Any person aggrieved by any decision or ruling of the board may

17

appeal it to the director of the department. Any further appeal from the action of the director is in

18

accordance with the provisions of chapter 35 of title 42. For the purpose of this section the

19

division is considered a person.

20

     5-10-32. Enforcement of chapter – Annual reports.

21

     The division is specifically charged with the enforcement of this chapter, shall investigate

22

all complaints for violations of the provisions of this chapter, and shall hold a hearing upon any

23

complaint for any violation of the chapter within thirty (30) days after the filing of the complaint

24

and render a decision, in writing, within ten (10) days from the close of the hearing. If the

25

division finds that any of the provisions of this chapter have been violated, it shall immediately

26

institute any criminal prosecution that the violation warrants.

27

     5-10-39. Demonstrator's permit.

28

     The division may, in its discretion, issue to any person recognized by the division as an

29

authority on, or an expert in, the theory or practice of barbering, hairdressing, and cosmetic

30

therapy and/or manicuring or esthetics, and is the holder of a current esthetician's, manicurist's or

31

a barber's, hairdresser's, and cosmetician's license in this state, another state, or the District of

32

Columbia, a demonstrator's permit for not more than six (6) days' duration for educational and

33

instructive demonstrations; provided, that the permit shall not be used in the sense of a license to

34

practice barbering, manicuring, esthetics, or hairdressing and cosmetic therapy. The fee for the

 

LC003937 - Page 149 of 402

1

permit is as set forth in § 23-1-54 by the department.

2

     SECTION 7. Section 5-25-10 of the General Laws in Chapter 5-25 entitled “Veterinary

3

Practice” is hereby amended to read as follows:

4

     5-25-10. Qualifications for licensure.

5

     Any applicant for licensure shall submit to the department written evidence on forms

6

furnished by the department verified by oath that the applicant meets all of the following

7

requirements:

8

     (1) Is a graduate of a school or college of veterinary medicine recognized and accredited

9

by the American Veterinary Medical Association and by the department or certification by the

10

Educational Council for Foreign Veterinary Graduates;

11

     (2) Pays an application fee as set forth in § 23-1-54 at the time of submitting the

12

application, which, in no case is returned to the applicant;

13

     (3) Is of good moral character, evidenced in the manner prescribed by the department;

14

and

15

     (4) Complies with any other qualifications that the department prescribes by regulation;

16

and

17

     (5) Comply with the continuing education requirements adopted by the department.

18

     SECTION 8. Section 5-30-6 of the General Laws in Chapter 5-30 entitled “Chiropractic

19

Physicians” is hereby amended to read as follows:

20

     5-30-6. Qualifications and examinations of applicants.

21

     Every person desiring to begin the practice of chiropractic medicine, except as provided

22

in this chapter, shall present satisfactory evidence to the division of professional regulation of the

23

department of health, verified by oath, that he or she is more than twenty-three (23) years of age,

24

of good moral character, and that before he or she commenced the study of chiropractic medicine

25

had satisfactorily completed credit courses equal to four (4) years of pre-professional study

26

acceptable by an accredited academic college and obtained a bachelor of science or bachelor of

27

arts degree and subsequently graduated from a school or college of chiropractic medicine

28

approved by the division of professional regulation of the department of health, and has

29

completed a residential course of at least four (4) years, each year consisting of at least nine (9)

30

months study. Any qualified applicant shall take an examination before the state board of

31

chiropractic examiners to determine his or her qualifications to practice chiropractic medicine.

32

Every applicant for an examination shall pay a fee as set forth in § 23-1-54 for the examination to

33

the division of professional regulation. Every candidate who passes the examination shall be

34

recommended by the division of professional regulation of the department of health to the

 

LC003937 - Page 150 of 402

1

director of the department of health to receive a certificate of qualification to practice chiropractic

2

medicine.

3

     SECTION 9. Sections 5-26-2 and 5-26-3 of the General Laws in Chapter 5-26 entitled

4

“Division of Profession Regulation” are hereby amended to read as follows:

5

     5-26-2. Boards of examiners appointed by director of health.

6

     The director of health, with the approval of the governor, shall also appoint to the

7

division of professional regulation a board of nursing registration and education as provided by

8

chapter 34 of this title, and a board of examiners of each of the following arts, practices, sciences,

9

or callings: barbering, podiatry, chiropractic, (except as provided in § 5-30-1.1) psychology,

10

optometry, electrolysis, and physical therapy; and a board of five (5) examiners in speech

11

pathology, audiology, and embalming. Those boards shall perform the duties prescribed by

12

chapters 10, 29, 30, (except as provided in § 5-30-1.1), 32, 33, 34, 35, 40, and 44, and 48 of this

13

title.

14

     5-26-3. Qualifications of examiners.

15

     The examiners appointed for each specific art, practice, science, or calling referred to in §

16

5-26-2 shall be persons competent to give those examinations and shall be appointed from

17

persons licensed to practice such an art, practice, science, or calling in this state, except that one

18

member of each of the chiropractic, and electrolysis boards shall be a physician licensed to

19

practice medicine in the state.

20

     SECTION 10. Sections 5-32-2, 5-32-3, 5-32-4, 5-32-6, 5-32-7, 5-32-9, 5-32-11, 5-32-12,

21

5-32-13, 5-32-19 and 5-32-20 of the General Laws in Chapter 5-32 entitled “Electrolysis” are

22

hereby amended to read as follows:

23

     5-32-2. Penalty for unlicensed practice.

24

     Every person who subsequently engages in the practice of electrolysis in this state

25

without being licensed by the board of examiners in electrolysis is practicing illegally and, upon

26

conviction, shall be fined not more than twenty-five dollars ($25.00) and every day of the

27

continuation of illegal practice is a separate offense violation.

28

     5-32-3. Certificates – Applications – Penalty for violations.

29

     The division of professional regulation commercial licensing of the department of health

30

business regulation shall issue certificates to practice electrolysis, as defined in this chapter, to

31

any persons that comply with the provisions of this chapter. Any person who desires to engage in

32

that practice shall submit, in writing, in any form that is required by the board department, an

33

application for a certificate to engage in that practice. The application shall be accompanied by a

34

fee as set forth in § 23-1-54 by the department of business regulation. Any person, firm,

 

LC003937 - Page 151 of 402

1

corporation or association violating any of the provisions of this chapter commits a misdemeanor

2

and, upon conviction, shall be punished by a fine not to exceed two hundred dollars ($200), or

3

imprisoned for a period not to exceed three (3) months, or both the fine and imprisonment.

4

     5-32-4. Qualifications of applicants. 

5

     Licenses to engage in the practice of electrolysis shall be issued to the applicants who

6

comply with the following requirements:

7

     (1) Are citizens or legal residents of the United States.

8

     (2) Have attained the age of eighteen (18) years.

9

     (3) Have graduated from a high school or whose education is the equivalent of a high

10

school education.

11

     (4) Have satisfactorily completed a course of training and study in electrolysis, as a

12

registered apprentice under the supervision of a licensed Rhode Island electrologist who is

13

qualified to teach electrolysis to apprentices as prescribed in § 5-32-20, or has graduated from a

14

school of electrolysis after having satisfactorily completed a program consisting of not less than

15

six hundred fifty (650) hours of study and practice in the theory and practical application of

16

electrolysis. That apprenticeship includes at least six hundred and fifty (650) hours of study and

17

practice in the theory and practical application of electrolysis within a term of nine (9) months;

18

provided, that the apprentice registers with the division of professional regulation of the

19

department of health upon beginning his or her course of instruction, and the licensed person with

20

whom they serve that apprenticeship keeps a record of the hours of that instruction, and, upon the

21

completion of that apprenticeship, certifies that fact to the board of examiners in electrolysis.

22

     (5) Is of good moral character.

23

     (6) Passes an examination approved by the department of health Business Regulation

24

     5-32-6. Examination of applicants – Expiration and renewal of certificates.

25

     (a) Examination of applicants for certificates shall be held at least twice a year in the city

26

of Providence and may be held elsewhere at the discretion of the division of professional

27

regulation commercial licensing of the department of health business regulation. The division has

28

the power to adopt, change, alter and amend, rules and regulations for the conducting of those

29

examinations, and may fix the fee for reexamination. The division shall issue to each person

30

successfully passing the examination, where an examination is required, and who satisfies the

31

division of his or her qualifications, a certificate, signed by the administrator an authorized person

32

of the division, entitling him or her to practice that business in this state for the annual period

33

stated in the certificate, or until the certificate is revoked or suspended, as subsequently provided.

34

     (b) All certificates shall expire on the 30th day of April of each year, unless sooner

 

LC003937 - Page 152 of 402

1

suspended or revoked, and shall be renewed for the next ensuing year by the division upon

2

payment to the division of an annual renewal fee as set forth in § 23-1-54 by the department for

3

each renewal.

4

     5-32-7. Certification of licensees from other states.

5

     Any person licensed to practice electrolysis in any other state or states, who is, or in good

6

faith intends to become, a resident of this state, where the requirements are the equivalent of those

7

of this state and who meets the requirements of this chapter shall be entitled to take that

8

examination and, if he or she passes that examination, shall be, upon the payment of a fee as set

9

forth in § 23-1-54 by the department of business regulation, entitled to be licensed under the

10

provisions of this chapter.

11

     5-32-9. Fixed place of business – Sanitary regulation.

12

     The practice of electrolysis shall be engaged in only in a fixed place or establishment,

13

which place or establishment shall be provided with any instruments, implements, and equipment

14

and subject to any sanitary regulation and inspection that the division of professional regulation

15

commercial licensing of the department of health business regulation prescribes.

16

     5-32-11. Display of licenses – Revocation or suspension of licenses for gross

17

unprofessional misconduct.

18

     (a) Every license issued under this chapter shall specify the name of the person to whom

19

it was issued and shall be displayed prominently in the place of business or employment. The

20

division of professional regulation commercial licensing of the department of health business

21

regulation has the power to revoke or suspend any license of registration issued under this chapter

22

for gross unprofessional conduct. Gross unprofessional conduct is defined as including, but not

23

limited to:

24

     (1) The use of any false or fraudulent statement in any document connected with the

25

practice of electrolysis.

26

     (2) The obtaining of any fee by fraud or misrepresentation either to a patient or insurance

27

plan.

28

     (3) The violation of a privileged communication.

29

     (4) Knowingly performing any act which in any way aids or assists an unlicensed person

30

to practice electrolysis in violation of this chapter.

31

     (5) The practice of electrolysis under a false or assumed name.

32

     (6) The advertising for the practice of electrolysis in a deceptive or unethical manner.

33

     (7) Habitual intoxication or addiction to the use of drugs to the extent it impairs the

34

licensee’s ability to engage in the practice of his or her profession.

 

LC003937 - Page 153 of 402

1

     (8) Violations of any of the rules or regulations of the state department of health business

2

regulation, or the violation of any section of this chapter.

3

     (9) Gross incompetence in the practice of his or her profession.

4

     (10) Repeated acts of immorality or repeated acts of gross misconduct in the practice of

5

his or her profession.

6

     (b) Before any license is suspended or revoked, its holder shall be notified, in writing, of

7

the charge or charges preferred against him or her and shall have a reasonable time to prepare his

8

or her defense and has the right to be represented by counsel and to be heard and to present his or

9

her defense and afforded an opportunity for hearing in accordance with the Administrative

10

Procedures Act, chapter 35 of title 42. Any person whose license has been suspended or revoked

11

may apply to have the license reissued and the license may be reissued to him or her upon a

12

satisfactory showing that the cause for disqualification has ceased. The division of professional

13

regulation commercial licensing of the department of health business regulation has power by its

14

administrator to summon any person to appear as a witness and testify at any hearing of the

15

division, to examine witnesses, administer oaths and punish for contempt any person refusing to

16

appear or testify. The division shall serve provide a copy of its decision or ruling upon any person

17

whose license has been revoked or refused.

18

     5-32-12. Appeals from division.

19

     Any person aggrieved by any decision or ruling of the division of professional regulation

20

commercial licensing of the department of health business regulation may appeal that decision to

21

the superior court in the manner provided in the Administrative Procedures Act, chapter 35 of

22

title 42.

23

     5-32-13. Annual renewal of certificates.

24

     All certificates issued under the provisions of this chapter shall be renewed annually by

25

the holders of the certificate at an annual renewal fee as set forth in § 23-1-54 by the division of

26

professional regulation of the department of health.

27

     5-32-19. Apprenticeship register.

28

     The division of professional regulation commercial licensing of the department of health

29

business regulation shall keep a register in which record of the names of all persons serving

30

apprenticeships licensed under this chapter shall be recorded. This register is open to public

31

inspection.

32

     5-32-20. Qualifications for teaching electrolysis.

33

     (a) A person, in order to qualify as an instructor or teacher of electrolysis to apprentices,

34

must:

 

LC003937 - Page 154 of 402

1

     (1) Have been actively engaged as a licensed practitioner of electrolysis for at least five

2

(5) years.

3

     (2) Pass a state board examination specifically designed to evaluate his or her

4

qualifications to teach electrolysis.

5

     (3) Be a high school graduate or the equivalent.

6

     (b) Upon satisfactorily passing this examination, the division of professional regulation

7

commercial licensing of the department of health business regulation shall issue a license to the

8

person upon the payment of a fee as set forth in § 23-1-54 by the department.

9

     (c) A qualified licensed electrologist shall not register more than one apprentice for each

10

nine-month (9) training period.

11

     SECTION 11. Sections 5-33.2-1, 5-33.2-2, 5-33.2-3, 5-33.2-5, 5-33.2-12, 5-33.2-13, 5-

12

33.2-13.1, 5-33.2-13.2, 5-33.2-15, 5-33.2-16, 5-33.2-18, 5-33.2-19, 5-33.2-20 and 5-33.2-22 of

13

the General Laws in Chapter 5-33.2 entitled “Funeral Director/Embalmer Funeral Service

14

Establishments” are hereby amended to read as follows:

15

     5-33.2-1. Definitions.

16

     As used in this chapter:

17

     (1) "Board" means the state board of funeral directors/embalmers.

18

     (2) "Cremation" means a two (2) part procedure where a dead human body or body parts

19

are reduced by direct flames to residue which includes bone fragments and the pulverization of

20

the bone fragments to a coarse powdery consistency.

21

     (3) "Department" means the Rhode Island department of health business regulation.

22

     (4) "Division" means the division of professional regulation commercial licensing created

23

under chapter 26 of this title.

24

     (5) "Embalmer" means any person who has completed an internship, full course of study

25

at an accredited mortuary science school, has passed the national board examination and is

26

engaged in the practice or profession of embalming, as defined in this section.

27

     (6) "Embalming" means the practice, science or profession of preserving, disinfecting,

28

and preparing in any manner, dead human bodies for burial, cremation or transportation.

29

     (7) "Funeral" means a period following death in which there are religious services or

30

other rites or ceremonies with the body of the deceased present.

31

     (8)(i) "Funeral directing" means:

32

     (A) Conducting funeral services; or

33

     (B) The arrangement for disposition of dead human bodies, except in the case of any

34

religion where the preparation of the body or the provision of funeral services should be done

 

LC003937 - Page 155 of 402

1

according to religious custom or belief.

2

     (ii) Only funeral directors/embalmers, working for a licensed funeral establishment are

3

allowed to meet with families for the purpose of arranging funerals. Provided, that any person

4

who assumed an ownership interest from their spouse or any widow or widower of a licensed

5

funeral director who at the time of November 1, 1995 has been meeting with families to arrange

6

for the conducting of funeral services are allowed to continue this practice.

7

     (9) "Funeral director/embalmer" means any person engaged, or holding himself or herself

8

out as engaged in the practice or profession of funeral directing, and the science, practice or

9

profession of embalming as previously defined, including a funeral director of record, who may

10

be a funeral director at more than one establishment or any other word or title intending to imply

11

or designate him or her as a funeral director/embalmer, undertaker, or mortician. The holder of

12

this license must be the holder of an embalmer's license.

13

     (10) "Funeral director/embalmer intern" means any person engaged in learning the

14

practice, or profession of funeral directing and the science, practice or profession of embalming

15

under the instruction and supervision of a funeral director/embalmer licensed and registered under

16

the provisions of this chapter and actively engaged in the practice, or profession of funeral

17

directing and embalming in this state.

18

     (11) "Funeral establishment" means a fixed place, establishment or premises, licensed by

19

the department, devoted to the activities which are incident, convenient, or related to the care and

20

preparation, arrangement, financial and otherwise, for the funeral, transportation, burial or other

21

disposition of human dead bodies and including, but not limited to, a suitable room with all

22

instruments and supplies used for the storage and/or preparation of dead human bodies for burial

23

or other disposition.

24

     (12) "Funeral merchandise" means those items which are normally presented for sale as

25

part of the funeral home operation on a for profit basis. These items include caskets, sealed

26

warranted outer burial containers, and burial clothing. Not included are urns, grave markers, and

27

non-sealed outer burial containers. All persons engaged in the sale of funeral merchandise must

28

comply with the provisions of chapter 33 of this title.

29

     (13) "Person" includes individuals, partnership, corporations, limited liability companies,

30

associations and organization of all kinds.

31

     (14) "Practice of funeral service" means a person engaging in providing shelter, care and

32

custody of human dead remains; in the practice of preparing of the human dead remains by

33

embalming or other methods for burial or other disposition; in entering into a funeral service

34

contract; engaging in the functions of funeral directing and/or embalming as presently known

 

LC003937 - Page 156 of 402

1

including those stipulated within this chapter and as defined in the federal trade commission

2

"funeral rule". The practice of conducting funeral services is conducted in the presence of a

3

licensed funeral director/embalmer.

4

     5-33.2-2. Board of examiners – Qualifications and removal of members – Vacancies.

5

     (a) The members of the board of examiners in embalming shall be residents of this state

6

for at least five (5) years; three (3) of whom shall have had at least five (5) years' practical

7

experience in embalming dead human bodies and in funeral directing, and shall have been

8

actually engaged in these professions in this state and two (2) of whom shall be private citizens

9

who represent the consumer and who are not involved with or affiliated with, financial or

10

otherwise, any funeral establishment and/or funeral director/embalmer. The current members

11

shall serve their present term as they fulfill the requirements of this section. No member shall

12

serve more than two (2) consecutive terms.

13

     (b) The director of the department of health business regulation may remove any member

14

of the board for cause. Vacancies are filled pursuant to § 5-26-4 by the director of the department.

15

     5-33.2-3. Rules and regulations.

16

     The director of the department of health business regulation has the power to adopt any

17

rules and regulations not inconsistent with law, which he or she deems necessary, in carrying out

18

the purposes of this chapter and for the prevention of and transmission of disease.

19

     5-33.2-5. Application for license – Application fee.

20

     Any person who desires to engage in embalming or funeral directing, or both, shall

21

submit, in writing, to the division of professional regulation, an application for a license. That

22

application shall be accompanied by a fee set by the department of health business regulation.

23

     5-33.2-12. Funeral establishment and branch offices licenses.

24

     (a) No person, association, partnership, corporation, limited liability company or

25

otherwise, shall conduct, maintain, manage, or operate a funeral establishment or branch office

26

unless a license for each funeral establishment and branch office has been issued by the

27

department and is conspicuously displayed. In the case of funeral services conducted under the

28

license of a funeral establishment held in any private residence, public building or church, no

29

separate establishment license shall be required. A licensed funeral establishment must be distinct

30

and separate from other non- funeral service related activity for which it is licensed. No license to

31

operate a funeral establishment shall be issued by the department unless the applicant for the

32

funeral establishment license has registered with the department a licensed funeral

33

director/embalmer who shall be in charge as the funeral director of record. The branch office of a

34

funeral establishment must have a separate branch office establishment license but not a separate

 

LC003937 - Page 157 of 402

1

funeral director of record. One branch office shall be allowed to operate under the funeral

2

establishment license, and this one branch office may be permitted to operate without a

3

preparation room. Applications for the funeral establishment license and branch office shall be

4

made on forms furnished by the division accompanied by the application fees as set forth in § 23-

5

1-54 by the department. Upon receipt of a completed application and the recommendation of the

6

board, the division shall issue a license. All funeral establishment and branch office licenses shall

7

expire on the thirty-first day of December of each year, unless sooner suspended or revoked. A

8

license shall be issued to a specific licensee for a specific location and is not transferable. The

9

funeral establishment licensee shall notify the division, in writing, delivered in person or by

10

certified mail, within ten (10) days from the date of termination of employment, for any cause, of

11

the funeral director/embalmer of record with the division for the funeral establishment. The

12

license of the funeral establishment shall expire forty-five (45) days from the date the division

13

was notified by the licensee, if no new funeral director/embalmer is registered with the division.

14

No funeral services shall be conducted at the funeral establishment without a funeral

15

director/embalmer being registered with the division as the funeral director of record for that

16

funeral establishment. Two (2) licensed funeral directors may operate jointly at one location if

17

one of their existing funeral establishments closes its place of business and joins an existing

18

licensed funeral establishment. Each firm will hold its own separate establishment license. One

19

cannot operate a branch office by invoking this section. Human dead remains shall not be held

20

more than forty-eight (48) hours without embalming or without refrigeration for the purpose of

21

maintaining public health. A funeral establishment must at the minimum contain a preparation

22

room equipped with tile, cement, or composition floor, necessary drainage and ventilation, and

23

containing necessary instruments and supplies for the preparation and embalming of dead human

24

remains for burial, transportation, or other disposition.

25

     (b) Any person who inherits any ownership interest to a funeral establishment may

26

continue to conduct the business of that establishment as their ownership interest would allow

27

upon the following:

28

     (1) Filing with the division a statement of change of fact concerning that inheritance.

29

     (2) Conducting the business of the establishment in compliance with all the requirements

30

of this chapter.

31

     5-33.2-13. Funeral establishment and branch officer – Crematories – Inspections –

32

Denial of access.

33

     (a) Any licensed funeral director/embalmer employed, authorized and empowered by the

34

division of professional regulation commercial licensing may enter any funeral establishment,

 

LC003937 - Page 158 of 402

1

funeral establishment branch office or crematory licensed under the provisions of this chapter,

2

during the hours the funeral establishment, funeral establishment branch office or crematory is

3

open for business, for the purpose of inspecting the sanitary conditions, complaint investigations,

4

and ascertaining if the provisions of this chapter and the rules and regulations are being observed

5

in the operation of the funeral establishment, funeral establishment branch office or crematory.

6

The inspector may request permission from the department to be accompanied by another

7

employee of the department of health business regulation prior to an inspection. Failure or refusal

8

of the person in charge of that funeral establishment, funeral establishment branch office or

9

crematory to permit the inspection at all reasonable times shall be deemed sufficient cause for the

10

revocation of any license issued to the funeral establishment, funeral establishment branch office

11

or crematory and any certificate of approval issued by the division.

12

     (b) Funeral establishments and branch offices and crematories licensed under the

13

provisions of this chapter shall be inspected at least twice once each year. Inspections shall

14

include all areas of sanitation and public health, complaint investigations, as well as conformity

15

with applicable section of this chapter and the rules and regulations.

16

     5-33.2-13.1. Crematories – License and inspection.

17

     No crematory owned or operated by or located on property licensed as a funeral

18

establishment or at another location or by a cemetery shall conduct cremations without first

19

having applied for and obtained a license from the department. Applications for the crematory

20

license shall be made on forms furnished by the division accompanied by the application fee as

21

set forth in § 23-1-54 by the department. Upon receipt of a completed application, the department

22

shall issue a license. A license shall be issued to a specific licensee for a specific location and is

23

not transferable. The facility and licensee shall meet all requirements as prescribed by the rules

24

and regulations established by the department, not inconsistent with this chapter.

25

     5-33.2-13.2. Cremation of human remains.

26

     (a)(1) Cremation shall not take place until the necessary permits and consents are issued

27

pursuant to § 23-3-18.

28

     (2) A crematory shall not take custody of unidentified human remains.

29

     (3) Human remains designated for cremation shall be cremated without unreasonable

30

delay.

31

     (4) When the crematory is unable to cremate the human remains immediately upon taking

32

custody, the crematory shall provide a holding facility that complies with any applicable public

33

health law that preserves the dignity of the human remains.

34

     (5) Holding facilities must be secure from access by all unauthorized persons;

 

LC003937 - Page 159 of 402

1

     (6) A crematory shall not simultaneously cremate more than one human remain within

2

the same cremation chamber. The processing, packaging, storage and disposition of cremated

3

remains shall be as prescribed in the rules and regulations p