=======

art.002/6/002/5/002/4/002/3/002/2/002/1

=======

     ARTICLE 2 AS AMENDED

RELATING TO STATE FUNDS

     SECTION 1. Section 5-20.7-15 of the General Laws in Chapter 5-20.7 entitled "Real Estate

Appraiser Certification Act" is hereby amended to read as follows:

     5-20.7-15. Fees.

     (a) The director is empowered and directed to establish a fee schedule for the application,

review, examination, and re-examination of applicants for certification and licensing and for the

issuance and renewal of certificates and for late fees; provided, that the annual fee for a residential

or general appraiser certificate is two hundred dollars ($200).

     (b) There is hereby created a restricted receipt account within the general fund of the state

to be known as the real estate appraisers – registration – CLRA account. Fees collected pursuant to

§ 5-20.7-15(a) shall be deposited into this account and be used to finance costs associated with real

estate appraisers registration. The restricted receipt account will be included in the budget of the

department of business regulation.

     SECTION 2. Section 5-20.9-7 of the General Laws in Chapter 5-20.9 entitled "Real Estate

Appraisal Management Company Registration Act" is hereby amended to read as follows:

     5-20.9-7. Initial registration, renewals, forms and fees.

     (a) An applicant for registration as an appraisal management company shall submit to the

department an application on forms prescribed by the department and pay the required fee(s).

     (b) The fees for initial registration, renewal, and late renewals shall be determined by the

director and established by regulation.

     (c) There is hereby created a restricted receipt account within the general fund of the state

to be known as the appraisal management company – registration account. Fees collected pursuant

to § 5-20.9-7 shall be deposited into this account and be used to finance costs associated with

appraisal management company registration and operations. The restricted receipt account will be

included in the budget of the department of business regulation.

     (c)(d) Every appraisal management company that desires to renew a registration for the

next term shall apply for the renewal of the registration upon a form furnished by the director and

containing information that is required by this chapter. Renewal of a registration is subject to the

same provisions as the initial registration.

     (d)(e) The department shall receive applications for registration for initial licensing and

renewal and establish administrative procedures for processing applications and issuing and

renewing registrations.

     (e)(f) The department shall have the authority to assess and collect from registered entities,

the AMC federal registry fee in any amount assessed by the appraisal subcommittee of the Federal

Financial Institutions Examination Council or its successor entity, and transmit the fee to the

Federal Financial Institutions Examinations Council.

     (f)(g) A federally regulated appraisal management company operating in this state shall

report to the department any information necessary for the department to assess, collect, and

forward the AMC federal registry fee in any amount assessed by the appraisal subcommittee of the

Federal Financial Institutions Examination Council or its successor entity.

     SECTION 3. Sections 22-13-1 and 22-13-4 of the General Laws in Chapter 22-13 entitled

"Auditor General" are hereby amended to read as follows:

     22-13-1. Appointment -- Qualifications -- Oath -- Bond -- Office space -- Rules and

regulations.

     (a) The auditor general shall be appointed by the joint committee on legislative services,

referred to in this chapter as "the committee." At the time of appointment, the auditor general shall

have had active experience in general accounting principles and practices in this state for a total

period of at least five (5) years. Vacancies in the office shall be filled in the same manner as the

original appointment.

     (b)(1) The committee shall employ qualified persons necessary for the efficient operation

of the office and shall fix their duties and compensation and those persons shall be in the

unclassified service.

     (2) No person shall be employed as an auditor who does not have adequate technical

training and proficiency, and a baccalaureate degree from a college or university, and no person

shall be employed or retained as legal advisor on either a full-time or a part-time basis who is not

a member of the Rhode Island bar.

     (c) The auditor general before entering upon the duties of his or her office, shall take and

subscribe to the oath of office required of state officers by the state constitution.

     (d) The auditor general shall be covered by the state's blanket position bond and

conditioned that he or she will well and faithfully discharge the duties of his or her office, promptly

report any delinquency or shortage discovered in any accounts and records audited by him or her,

and promptly pay over and account for any and all funds that shall come into his or her hands as

auditor.

     (e)(1) All auditors employed by the auditor general shall be covered by a blanket position

bond. The bonds or bond shall meet and contain the same conditions as are required in the bond of

the auditor general.

     (2) All bonds shall be filed with the committee. If an auditor is not covered in the blanket

position bond, an individual bond shall be filed within thirty (30) days after the employee received

notice of his or her employment. The amount of the bond shall be determined by the auditor general.

Failure to file an individual bond or to be covered in the blanket position bond shall terminate his

or her employment.

     (f) The annual premium of all bonds shall be paid out of any funds provided for the

operation of the office.

     (g) The auditor general shall be provided with suitable quarters, but to facilitate auditing

and to eliminate unnecessary traveling, the joint committee on legislative services may establish

divisions, including a performance investigation division, and assign auditors to each division and

determine their duties and the areas of the state to be served by the respective divisions. The auditor

general shall be provided and furnished with any space that may be necessary to carry out his or

her functions in other areas of the state.

     (h) The auditor general may make and enforce reasonable rules and regulations necessary

to facilitate audits and investigations which the joint committee on legislative services authorizes

the auditor general to perform. This includes the post-audit of the financial transactions and

accounts of the state that is provided for by the finance committee of the house of representatives.

     (i) No full-time employee of the office of auditor general shall serve as an executive,

officer, or employee of any political party committee, organization, or association. Neither the

auditor general nor any employee of the auditor general shall become a candidate for election to

public office unless he or she shall first resign from his or her office or employment.

     22-13-4. Definitions -- Duties of auditor general -- Investigations by committee.

     (a) The following words and phrases have the following meanings unless a different

meaning is required by the context:

     (1) "Performance audit" means an examination of the effectiveness of administration and

its efficiency and adequacy in terms of the program of the state agency authorized by law to be

performed. The "performance audit" may also include a review of the agency in terms of

compliance with federal and state laws and executive orders relating to equal employment

opportunities and the set aside for minority businesses.

     (2) "Political subdivision" means a separate agency or unit of local government created or

established by law and includes, but is not limited to, the following and the officers of the following:

authority, board, branch, bureau, city, commission, council, consolidated government, county,

department, district, institution, metropolitan government, municipality, office, officer, public

corporation, town, or village.

     (3) "Post-audit" means an audit made at some point after the completion of a transaction

or a group of transactions.

     (4) "State agency" means a separate agency or unit of state government created or

established by law and includes, but is not limited to, the following and the officers of the following:

authority, board, branch, bureau, commission, council, department, division, institution, office,

officer, or public corporation, as the case may be, except any agency or unit within the legislative

branch of state government.

     (b) The auditor general shall make post-audits and performance audits of public records

and perform related duties as prescribed by the committee. He or she shall perform his or her duties

independently but under the general policies established by the committee.

     (c)(1) The auditor general shall have the power and duty to make post-audits and

performance audits of the accounts and records of all state agencies, including the board of

governors for higher education and the board of regents for elementary and secondary education,

as defined in this section.

     (2) The auditor general shall have the power, when requested by a majority of the

committee, to make post-audits and performance audits of accounts and records of any other public

body or political subdivision, or any association or corporation created or established by any

general or special law of the general assembly, or any person, association, or corporation to which

monies of the state have been appropriated by the general assembly. Nothing in the subdivision

shall be construed to apply to public utilities.

     (3) The auditor general shall perform or have performed annually a complete post-audit of

the financial transactions and accounts of the state when approved by the chairperson of the joint

committee on legislative services.

     (d) The committee may at any time, without regard to whether the legislature is then in

session or out of session, take under investigation any matter within the scope of an audit either

completed or then being conducted by the auditor general, and in connection with that investigation

may exercise the powers of subpoena vested by law in a standing committee of the legislature.

     (e)(1) The auditor general may, when directed by the committee, designate and direct any

auditor employed by him or her to audit any accounts or records within the power of the auditor

general to audit. The auditor shall report his or her findings for review by the auditor general, who

shall prepare the audit report.

     (2) The audit report shall make special mention of:

     (i) Any violation of the laws within the scope of the audit; and

     (ii) Any illegal or improper expenditure, any improper accounting procedures, all failures

to properly record financial transactions, and all other inaccuracies, irregularities, shortages, and

defalcations.

     (3) At the conclusion of the audit, the auditor general or his or her designated representative

will conduct an exit conference with the official whose office or department is subject to audit and

submit to him or her a draft report which includes a list of findings and recommendations. If an

official is not available for the exit conference, delivery of the draft report is presumed to be

sufficient notice. The official must submit to the auditor general within sixty (60) days after the

receipt of the draft report his or her written reply as to:

     (i) Acceptance and plan of implementation of each recommendation;

     (ii) Reason(s) for non-acceptance of a recommendation.

     (4) Should the auditor general determine that the written explanation or rebuttal of the

official whose office is subject to audit is unsatisfactory, he or she shall, as soon as practicable,

report his or her findings to the joint committee on legislative services.

     (f) A copy of the audit report shall be submitted to each member of the committee.

     (g) If the auditor general discovers any errors, unusual practices, or any other discrepancies

in connection with his or her audit or post-audit of a state agency or state officers, the auditor

general shall, as soon as practicable, notify in writing the president of the senate and the speaker of

the house of representatives, respectively.

     (h) The auditor general shall annually review the capital development program to

determine: (1) the status of all projects included in the program; (2) whether the funds are being

properly expended for their intended purposes; (3) the completion date or projected completion

date of the projects; (4) which projects require professional services and to determine the identity

of individuals or firms appointed; and (5) the expended and unexpended funds. This report shall be

annually submitted to the general assembly on the first Wednesday in February.

     (i) The auditor general shall supervise, coordinate, and/or conduct investigations and

inspections or oversight reviews with the purpose of preventing and detecting fraud, waste, abuse

and mismanagement in the expenditure of public funds.

     SECTION 4. Section 23-77-2 of the General Laws in Chapter 23-77 entitled "Healthcare

Information Technology and Infrastructure Development Fund" is hereby amended to read as

follows:

     23-77-2. Establishment of the healthcare information technology and infrastructure

development fund.

     (a) There is established in the department of health, the healthcare information technology

and infrastructure development fund to be administered by the director of the department of health

for the purpose of promoting the development and adoption of healthcare information technologies

designed to improve the quality, safety and efficiency of healthcare services and the security of

individual patient data.

     (b) Moneys in the fund shall be used for projects authorized by the director of health and

may be expended by contract, loan, or grant, to develop, maintain, expand, and improve the state's

healthcare information technology infrastructure and to assist healthcare facilities and health

service providers in adopting healthcare information technologies shown to improve healthcare

quality, safety or efficiency. Such projects shall incorporate the goal of maintaining the security

and confidentiality of individual patient data, and separate projects for that purpose may also be

authorized from the fund. The director of health shall develop criteria for the selection of projects

to be funded from the fund in consultation with the healthcare information technology and

infrastructure advisory committee created in § 23-77-4.

     (c) Any moneys provided by loan shall be disbursed for periods not exceeding twenty-five

(25) years and at an annual rate of interest not exceeding five percent (5%).

     (d) The director of the department of health, in consultation with the state healthcare

information technology advisory committee, shall establish criteria for eligible healthcare

information technology and infrastructure projects to be funded under this chapter.

     (e) The healthcare information technology and infrastructure development fund, as herein

described, shall constitute a restricted receipt account within the general fund of the state and

housed within the budget of the department of health. The short title of the restricted receipt

account shall henceforth be designated as “health information technology”.

     SECTION 5. Section Sections 35-3-8 and 35-3-24 of the General Laws in Chapter 35-3

entitled "State Budget" is hereby amended to read as follows:

     35-3-8. Recommendations to meet deficiencies -- Submission of appropriation bills.

     (a) The budget shall also contain the recommendations of the governor to the general

assembly for new taxes, loans, or other appropriate actions to meet any estimated deficiency for

the ensuing fiscal year. It shall also be accompanied by a bill or bills for all proposed appropriations.

     (b) In the event that any departments of state government are expected to incur a deficiency

within the current fiscal year, the governor shall, on or before the third Thursday in January each

year, submit a request for supplemental appropriations on their behalf. Provided, however, in those

years that a new governor is inaugurated, the new governor shall submit the request on or before

the first Thursday in February. In the event that, prior to or subsequent to the request, the governor

determines that additional deficiencies are expected to be incurred, the governor shall submit

requests for additional appropriations upon notice of these deficiencies.

     (c) The request presented to the general assembly shall identify the proposed increases and

decreases to the original amounts provided in the annual appropriation act provided, that no action

shall be taken which will cause an excess of appropriations for revenue expenditures over expected

revenue receipts.

     35-3-24. Control of state spending.

     (a) All department and agency heads and their employees are responsible for ensuring that

financial obligations and expenditures for which they have responsibility do not exceed amounts

appropriated and are spent in accordance with state laws.

     (b) Persons with the authority to obligate the state contractually for goods and services

shall be designated in writing by department and agency heads.

     (c) In the event of an obligation, encumbrance, or expenditure in excess of amounts

appropriated, the department or agency head with oversight responsibility shall make a written

determination of the amount and the cause of the overobligation or overexpenditure, the person(s)

responsible, and corrective actions taken to prevent reoccurrence. The plan of corrective actions

contained within the report shall detail an appropriate plan to include, but not limited to, such issues

as the implementation of waiting lists, pro-rata reduction in payments and changes in eligibility

criteria as methods to address the shortfall. The report will be filed within thirty (30) days of the

discovery of the overobligation or overexpenditure with the budget officer, the controller, the

auditor general, and the chairpersons of the house and senate finance committees.

     (d) In the event a quarterly report demonstrates an obligation, encumbrance, or expenditure

in excess of amounts appropriated, the department or agency head with oversight responsibility

shall file monthly budget reports with the chairpersons of the house and senate finance committees

for the remainder of the fiscal year. The monthly budget reports shall detail steps taken towards

corrective actions and other measures to bring spending in line with appropriations. In addition, the

budget officer and controller shall ensure that the department’s or agency’s obligations,

encumbrances, and expenditures for the remainder of the fiscal year result in the department or

agency ending the fiscal year within amounts appropriated.

     (e) The controller shall not authorize payments for additional staff, contracts, or purchases

for any department or agency not projected to end a fiscal year within amounts appropriated unless

necessitated by immediate health and safety reasons, which shall be documented upon discovery

and reported, along with anticipated or actual expenditures, to the chairpersons of the house and

senate finance committees within fifteen (15) days.

     (d)(f) A state employee who has knowingly and willingly encumbered, obligated, or

authorized the expenditure of state funds in excess of amounts appropriated for those purposes or

entered into contracts without proper authorization may be placed on disciplinary suspension

without pay for up to thirty (30) days in accordance with § 36-4-36.

     (e)(g) A state employee who knowingly, willfully, and repeatedly authorizes actions

resulting in encumbrances or spending of state funds in excess of amounts appropriated may be

fined up to one thousand dollars ($1,000) and/or terminated from employment.

     (h) Upon receipt of any budgetary information indicating an obligation, encumbrance, or

expenditure in excess of the amounts appropriated, the chairperson of the house or senate finance

committee may request a written report to be submitted by the director of administration within ten

(10) calendar days. The report shall indicate if the obligation, encumbrance, or expenditure in

excess of the amounts appropriated resulted in any disciplinary action or other penalty in

accordance with subsection (f) or (g). If not, the report shall explain why no disciplinary action or

other penalty was imposed in accordance subsection (f) or (g).

     SECTION 6. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"

is hereby amended to read as follows:

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

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

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

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

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

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

administration for the payment of debt service. These indirect cost recoveries shall be applied to all

accounts, unless prohibited by federal law or regulation, court order, or court settlement. The

following restricted receipt accounts shall not be subject to the provisions of this section:

     Executive Office of Health and Human Services

     Organ Transplant Fund

     HIV Care Grant Drug Rebates

     Health System Transformation Project

     Department of Human Services

     Veterans' home -- Restricted account

     Veterans' home -- Resident benefits

     Pharmaceutical Rebates Account

     Demand Side Management Grants

     Veteran's Cemetery Memorial Fund

     Donations -- New Veterans' Home Construction

     Department of Health

     Pandemic medications and equipment account

     Miscellaneous Donations/Grants from Non-Profits

     State Loan Repayment Match

     Healthcare Information Technology

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

     Eleanor Slater non-Medicaid third-party payor account

     Hospital Medicare Part D Receipts

     RICLAS Group Home Operations

     Commission on the Deaf and Hard of Hearing

     Emergency and public communication access account

     Department of Environmental Management

     National heritage revolving fund

     Environmental response fund II

     Underground storage tanks registration fees

     De Coppet Estate Fund

     Rhode Island Historical Preservation and Heritage Commission

     Historic preservation revolving loan fund

     Historic Preservation loan fund -- Interest revenue

     Department of Public Safety

     E-911 Uniform Emergency Telephone System

     Forfeited property -- Retained

     Forfeitures -- Federal

     Forfeited property -- Gambling

     Donation -- Polygraph and Law Enforcement Training

     Rhode Island State Firefighter's League Training Account

     Fire Academy Training Fees Account

     Attorney General

     Forfeiture of property

     Federal forfeitures

     Attorney General multi-state account

     Forfeited property -- Gambling

     Department of Administration

     OER Reconciliation Funding

     Health Insurance Market Integrity Fund

     RI Health Benefits Exchange

     Information Technology Investment Fund

     Restore and replacement -- Insurance coverage

     Convention Center Authority rental payments

     Investment Receipts -- TANS

     OPEB System Restricted Receipt Account

     Car Rental Tax/Surcharge-Warwick Share

     Executive Office of Commerce

     Housing Resources Commission Restricted Account

     Department of Revenue

     DMV Modernization Project

     Jobs Tax Credit Redemption Fund

     Legislature

     Audit of federal assisted programs

     Department of Children, Youth and Families

     Children's Trust Accounts -- SSI

     Military Staff

     RI Military Family Relief Fund

     RI National Guard Counterdrug Program

     Treasury

     Admin. Expenses -- State Retirement System

     Retirement -- Treasury Investment Options

     Defined Contribution -- Administration - RR

     Violent Crimes Compensation -- Refunds

     Treasury Research Fellowship

     Business Regulation

     Banking Division Reimbursement Account

     Office of the Health Insurance Commissioner Reimbursement Account

     Securities Division Reimbursement Account

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

     Insurance Division Reimbursement Account

     Historic Preservation Tax Credit Account

     Judiciary

     Arbitration Fund Restricted Receipt Account

     Third-Party Grants

     RI Judiciary Technology Surcharge Account

     Department of Elementary and Secondary Education

     Statewide Student Transportation Services Account

     School for the Deaf Fee-for-Service Account

     School for the Deaf -- School Breakfast and Lunch Program

     Davies Career and Technical School Local Education Aid Account

     Davies -- National School Breakfast & Lunch Program

     School Construction Services

     Office of the Postsecondary Commissioner

     Higher Education and Industry Center

     Department of Labor and Training

     Job Development Fund

     SECTION 7. Section 39-1-62 of the General Laws in Chapter 39-1 entitled "Public Utilities

Commission" is hereby repealed.

     39-1-62. Geographic information system (GIS) and technology fund.

     (a) Preamble. To allow Rhode Island emergency and first response agencies to associate

latitude and longitude coordinates provided by wireless carriers with physical locations throughout

the state, the agency must establish and maintain a GIS database of street addresses and landmarks.

The database will allow local emergency response personnel to dispatch police, fire, and rescue

personnel to a specific address or landmark of a cellular caller in the event the caller is unaware of

his or her location, or is physically unable to communicate it. Because more than half of the 530,000

9-1-1 phone calls received in 2003 came from cellular phones, it is critical that the GIS database

be developed and maintained in order to improve caller location identification and reduce

emergency personnel response times.

     (b) Definitions. As used in this section, the following terms have the following meanings:

     (1) "System" means emergency 911 uniform telephone system.

     (2) "Agency" means Rhode Island 911 emergency telephone system.

     (3) "Division" means the division of public utilities and carriers.

     (4) "GIS and technology fund" means the programs and funding made available to the

emergency 911 uniform telephone system to assist in paying the costs of the GIS database

development project and GIS systems maintenance, which will enable the system to locate cellular

phone callers by geocoding all addresses and landmarks in cities and towns throughout the state.

GIS and technology fund also includes programs and funding to create system redundancy, fund

the construction of a new E-911 facility, and operate and maintain other state-of-the-art equipment

in public safety agencies.

     (5) "Prepaid wireless telecommunications service" means a wireless telecommunications

service that allows a caller to dial 911 to access the 911 system, which service must be paid for in

advance and is sold in predetermined units or dollars of which the number declines with use in a

known amount.

     (c) Purpose. The purpose of the GIS and technology fund shall be to:

     (1) Implement and maintain a geographic information system database to assist in locating

wireless phone callers for emergency purposes in a manner consistent and in coordination with the

Rhode Island geographic information system administered by the division of planning as provided

for in § 42-11-10(g)(3);

     (2) Create system redundancy to ensure the reliability of 9-1-1 service to the public;

     (3) Operate and maintain other state-of-the-art equipment in public safety agencies;

     (4) Fund the construction of a new E-911 facility; and

     (5) Encourage the development of opportunities for and agreements on the sharing and

integration of services across municipalities in the implementation of the E-911 uniform emergency

telephone system.

     (d) Authority. The agency shall establish, by rule or regulation, an appropriate funding

mechanism to recover from the general body of ratepayers the costs of funding GIS and technology

projects.

     (1) The general assembly shall determine the amount of a monthly surcharge to be levied

upon each wireless instrument, device, or means including cellular, telephony, internet, voice over

internet protocol (VoIP), satellite, computer, radio, communication, data, or any other wireless

instrument, device, or means that has access to, connects with, interfaces with, or is capable of

delivering two-way interactive communications services to the Rhode Island uniform emergency

telephone system. Prepaid wireless E911 telecommunications services shall not be included in this

act, but shall be governed by chapter 21.2 of this title. The agency will provide the general assembly

with information and recommendations regarding the necessary level of funding to effectuate the

purposes of this article. The surcharge shall be billed monthly by each wireless telecommunications

services provider as defined in § 39-21.1-3, which shall not include prepaid wireless

telecommunications service, and shall be payable to the wireless telecommunications services

provider by the subscriber of the telecommunications services. Each telecommunication services

provider shall establish a special (escrow) account to which it shall deposit on a monthly basis the

amounts collected as a surcharge under this section. The money collected by each wireless

telecommunication services provider shall be transferred within sixty (60) days after its inception

of wireless, cellular, telephony, voice over internet protocol (VoIP), satellite, computer, internet,

or communications, information, or data services in this state and every month thereafter. Any

money not transferred in accordance with this paragraph shall be assessed interest at the rate set

forth in § 44-1-7 from the date the money should have been transferred. State, local, and quasi-

governmental agencies shall be exempt from the surcharge. The surcharge shall be deposited in a

restricted receipt account, hereby created within the agency and known as the GIS and technology

fund, to pay any and all costs associated with the provisions of subsection (c). Beginning July 1,

2007, the surcharge shall be deposited in the general fund as general revenues to pay any and all

costs associated with the provisions of subsection (c). The GIS and technology fund restricted-

receipt account shall be terminated June 30, 2008. The amount of the surcharge under this section

shall not exceed thirty-five cents ($.35) per wireless phone.

     (2) The surcharge is hereby determined to be twenty-six cents ($.26) per wireless phone,

cellular, telephony, voice over internet protocol (VoIP), satellite, computer, data or data only

wireless lines or internet communication or data instrument, device, or means that has access to,

connects with, activates or interfaces with or any combination of the above, with the Rhode Island

E-911 uniform emergency telephone system per month and shall be in addition to the wireless

surcharge charged under § 39-21.1-14. The twenty-six cents ($.26) is to be billed to all wireless

telecommunication service providers' subscribers upon the inception of services.

     (3) The amount of the surcharge shall not be subject to the sales and use tax imposed under

chapter 18 of title 44 nor be included within the gross earnings of the telecommunications

corporation providing telecommunications service for the purpose of computing the tax under

chapter 13 of title 44.

     (4) [Deleted by P.L. 2010, ch. 23, art. 9, § 10].

     (e) Administration. The division of taxation shall collect monthly from the wireless

telecommunications service providers as defined in § 39-21.1-3, and which shall not include

prepaid wireless telecommunications service, the amounts of the surcharge collected from their

subscribers. The division of taxation shall deposit such collections in the general fund as general

revenues for use in developing and maintaining the geographic information system database,

creating system redundancy, funding the construction of a new E-911 facility, and operating and

maintaining other state-of-the-art equipment for public safety agencies. The agency is further

authorized and encouraged to seek matching funds from all local, state, and federal public or private

entities and shall coordinate its activities and share all information with the state division of

planning.

     (f) Effective date. The effective date of assessment for the GIS and technology fund shall

be July 1, 2004.

     (g) Nothing in this section shall be construed to constitute rate regulation of wireless

communications services carriers, nor shall this section be construed to prohibit wireless

communications services carriers from charging subscribers for any wireless service or feature.

     (h) Except as otherwise provided by law, the agency shall not use, disclose, or otherwise

make available call location information for any purpose other than as specified in subsection (c).

     (i) The attorney general shall, at the request of the E-911 uniform emergency telephone

system division, or any other agency that may replace it, or on its own initiative, commence judicial

proceedings in the superior court against any telecommunication services provider as defined in §

39-21.1-3(12) providing communication services to enforce the provisions of this chapter.

     SECTION 8. Section 39-21.1-14 of the General Laws in Chapter 39-21.1 entitled "911

Emergency Telephone Number Act" is hereby amended to read as follows:

     39-21.1-14. Emergency services and first response surcharge Emergency services E-

911 surcharge and first response surcharge.

     (a)(i) A monthly E-911 surcharge of one dollar ($1.00) fifty cents ($.50) cents is hereby

levied upon each residence and business telephone line or trunk or path and data, telephony,

internet, voice over internet protocol (VoIP) wireline, line, trunk or path in the state including PBX

trunks and centrex equivalent trunks and each line or trunk serving, and upon each user interface

number or extension number or similarly identifiable line, trunk, or path to or from a digital network

(such as, but not exclusive of, integrated services digital network (ISDN), Flexpath, or comparable

digital private branch exchange, or connecting to or from a customer-based or dedicated telephone

switch site (such as, but not exclusive of, a private branch exchange (PBX)), or connecting to or

from a customer-based or dedicated central office (such as, but not exclusive of, a centrex system

but exclusive of trunks and lines provided to wireless communication companies) that can access

to, connect with, or interface with the Rhode Island E-911 uniform emergency telephone system

(RI E-911). In each instance where a surcharge is levied pursuant to this subsection (a)(i) above

there shall also be a monthly first response surcharge of fifty cents ($.50). The surcharge surcharges

shall be billed by each telecommunication services provider at the inception of services and shall

be payable to the telecommunication services provider by the subscriber of the services.

     (ii) A monthly E-911 surcharge of one dollar ($1.00) fifty cents ($.50) is hereby levied

effective July 1, 2002, on each wireless instrument, device, or means including prepaid, cellular,

telephony, internet, voice over internet protocol (VoIP), satellite, computer, radio, communication,

data or data only wireless lines or any other wireless instrument, device, or means that has access

to, connects with, or activates or interfaces or any combination thereof with the E 9-1-1 uniform

emergency telephone system. In each instance where a surcharge is levied pursuant to this

subsection (a)(ii) above there shall also be a monthly first response surcharge of seventy-five cents

($.75). The surcharge surcharges shall be in addition to the surcharge collected under § 39-1-62

and shall be billed by each telecommunication services provider and shall be payable to the

telecommunication services provider by the subscriber. Prepaid wireless telecommunications

services shall not be included in this act, but shall be governed by chapter 21.2 of this title. The E-

911 uniform emergency telephone system shall establish, by rule or regulation, an appropriate

funding mechanism to recover from the general body of ratepayers this surcharge.

     (b) The amount of the surcharge surcharges shall not be subject to the tax imposed under

chapter 18 of title 44 nor be included within the telephone common carrier's gross earnings for the

purpose of computing the tax under chapter 13 of title 44.

     (c) Each telephone common carrier and each telecommunication services provider shall

establish a special account to which it shall deposit on a monthly basis the amounts collected as a

surcharge surcharges under this section.

     (d) The money collected by each telecommunication services provider shall be transferred

within sixty (60) days after its inception of wireline, wireless, prepaid, cellular, telephony, voice

over internet protocol (VoIP), satellite, computer, internet, or communications services in this state

and every month thereafter, to the division of taxation, together with the accrued interest , and. The

E-911 surcharge shall be deposited in the general fund as general revenue a restricted receipt

account and used solely for the operation of the E 9-1-1 uniform emergency telephone system;. The

first response surcharge shall be deposited in the general fund; provided, however, that beginning

July 1, 2015, ten percent (10%) of such money collected from the first response surcharge shall be

deposited in the information technology investment fund established pursuant to § 42-11-2.5. Any

money not transferred in accordance with this paragraph shall be assessed interest at the rate set

forth in § 44-1-7 from the date the money should have been transferred.

     (e) Every billed subscriber-user shall be liable for any surcharge imposed under this section

until it has been paid to the telephone common carrier or telecommunication services provider. Any

surcharge shall be added to and may shall be stated separately in the billing by the telephone

common carrier or telecommunication services provider and shall be collected by the telephone

common carrier or telecommunication services provider.

     (f) Each telephone common carrier and telecommunication services provider shall annually

provide the E 9-1-1 uniform emergency telephone system division or any other agency that may

replace it, with a list of amounts uncollected together with the names and addresses of its

subscriber-users who can be determined by the telephone common carrier or telecommunication

services provider to have not paid the E-911 surcharge.

     (g) Included within, but not limited to, the purposes for which the money collected from

the E-911 surcharge may be used are rent, lease, purchase, improvement, construction,

maintenance, repair, and utilities for the equipment and site or sites occupied by the state's first

responder and emergency services agencies E-911 uniform emergency telephone system; salaries,

benefits, and other associated personnel costs; acquisition, upgrade, or modification of PSAP

equipment to be capable of receiving E 9-1-1 information, including necessary computer hardware,

software, and database provisioning, addressing, and non-recurring costs of establishing emergency

services; network development, operation, and maintenance; database development, operation, and

maintenance; on-premise equipment maintenance and operation; training emergency service

personnel regarding use of E 9-1-1; educating consumers regarding the operations, limitations, role,

and responsible use of E 9-1-1; reimbursement to telephone common carriers or telecommunication

services providers of rates or recurring costs associated with any services, operation,

administration, or maintenance of E 9-1-1 services as approved by the division; reimbursement to

telecommunication services providers or telephone common carriers of other costs associated with

providing E 9-1-1 services, including the cost of the design, development, and implementation of

equipment or software necessary to provide E 9-1-1 service information to PSAP's, as approved by

the division.

     (h) [Deleted by P.L. 2000, ch. 55, art. 28, § 1.]

     (i) Nothing in this section shall be construed to constitute rate regulation of wireless

communication services carriers, nor shall this section be construed to prohibit wireless

communication services carriers from charging subscribers for any wireless service or feature.

     (j) [Deleted by P.L. 2006, ch. 246, art. 4, § 1].

     SECTION 9. Sections 39-21.2-2, 39-21.2-4 and 39-21.2-5 of the General Laws in Chapter

39-21.2 entitled "Prepaid Wireless Charge Act" are hereby amended to read as follows:

     39-21.2-2. Findings.

     The legislature finds that:

     (1) Maintaining effective and efficient emergency services and first responder agencies

across the state benefits all citizens;

     (2) 911 fees imposed upon the consumers of telecommunications services that have the

ability to dial 911 are an important funding mechanism to assist state and local governments with

the deployment of emergency services to the citizens of this state;

     (3) Prepaid wireless telecommunication services are an important segment of the

telecommunications industry and have proven particularly attractive to low-income, low-volume

consumers;

     (4) Unlike traditional telecommunications services, prepaid wireless telecommunications

services are not sold or used pursuant to term contracts or subscriptions, and monthly bills are not

sent to consumers by prepaid wireless telecommunication services providers or retail vendors;

     (5) Prepaid wireless consumers have the same access to emergency 911 services from their

wireless devices as wireless consumers on term contracts, and prepaid wireless consumers benefit

from the ability to access the 911 system by dialing 911;

     (6) Consumers purchase prepaid wireless telecommunication services at a wide variety of

general retail locations and other distribution channels, not just through service providers;

     (7) Such purchases are made on a "cash-and-carry" or "pay-as-you-go" basis from retailers;

and

     (8) To ensure equitable contributions to the funding of emergency systems from consumers

of prepaid wireless telecommunication services, the collection and payment obligation of charges

to support the state's first responder and emergency services E-911 should be imposed upon the

consumer's retail purchase of the prepaid wireless telecommunication service and should be in the

form of a single, statewide charge that is collected once at the time of purchase directly from the

consumer, remitted to the state, and distributed to E911 authorities pursuant to state law.

     39-21.2-4. Emergency services and first response surcharge E-911 surcharge.

     (a) Amount of charge. The prepaid wireless E-911 charge is hereby levied at the rate of

two and one-half percent (2.5%) per retail transaction or, on and after the effective date of an

adjusted amount per retail transaction that is established under subsection (f) of this section, such

adjusted amount.

     (b) Collection of charge. The prepaid wireless charge shall be collected by the seller from

the consumer with respect to each retail transaction occurring in this state. The amount of the

prepaid wireless charge shall be either separately stated on an invoice, receipt, or other similar

document that is provided to the consumer by the seller, or otherwise disclosed to the consumer.

     (c) Application of charge. For purposes of subsection (b) of this section, a retail transaction

that is effected in person by a consumer at a business location of the seller shall be treated as

occurring in this state if that business location is in this state, and any other retail transaction shall

be treated as occurring in this state if the retail transaction is treated as occurring in this state for

purposes of chapter 18 of title 44.

     (d) Liability for charge. The prepaid wireless charge is the liability of the consumer and

not of the seller or of any provider, except that the seller shall be liable to remit all prepaid wireless

charges that the seller collects from consumers as provided in § 39-21.2-5, including all such

charges that the seller is deemed to collect where the amount of the charge has not been separately

stated on an invoice, receipt, or other similar document provided to the consumer by the seller.

     (e) Exclusion of charge from base of other taxes and fees. The amount of the prepaid

wireless charge that is collected by a seller from a consumer, if such amount is separately stated on

an invoice, receipt, or other similar document provided to the consumer by the seller, shall not be

included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by this

state, any political subdivision of this state, or any intergovernmental agency, including, but not

limited to, the tax imposed under chapter 18 of title 44 nor be included within the telephone

common carrier's gross earnings for the purpose of computing the tax under chapter 13 of title 44.

     (f) Re-setting of charge. The prepaid wireless charge shall be proportionately increased or

reduced, as applicable, upon any change to the state charge on postpaid wireless

telecommunications service under § 39-21.1-14 or § 39-1-62(d)(2). The adjusted amount shall be

determined by dividing the sum of the surcharges imposed under § 39-21.1-14 and § 39-1-62(d)(2)

by fifty dollars ($50.00). Such increase or reduction shall be effective on the effective date of the

change to the postpaid charge or, if later, the first day of the first calendar month to occur at least

sixty (60) days after the enactment of the change to the postpaid charge. The division shall provide

not less than thirty (30) days of advance notice of such increase or reduction on the division's

website.

     (g)(f) Bundled transactions. When prepaid wireless telecommunications service is sold

with one or more other products or services for a single, non-itemized price, then the percentage

specified in subsection (a) of this section shall apply to the entire non-itemized prices unless the

seller elects to apply such percentage (1) If the amount of prepaid wireless telecommunications

service is disclosed to the consumer as a dollar amount, such dollar amount, or (2) If the retailer

can identify the portion of the price that is attributable to the prepaid wireless telecommunications

service, by reasonable and verifiable standards from its books and records that are kept in the

regular course of business for other purposes, including, but not limited to, non-tax purposes, such

portion.

     However, if a minimal amount of prepaid wireless telecommunications service is sold with

a prepaid wireless device for a single, non-itemized price, then the seller may elect not to apply the

percentage specified in subsection (a) of this section to such transaction. For purposes of this

paragraph, an amount of service denominated as ten (10) minutes or less, or five dollars ($5.00) or

less, is minimal.

     39-21.2-5. Administration of E911 charge.

     (a) Time and manner of payment. Prepaid wireless E911 charges collected by sellers shall

be remitted to the division at the times and in the manner provided by the streamlined sales and use

tax as described in § 44-18.1-34. The division shall establish registration and payment procedures

that substantially coincide with the registration and payment procedures that apply to the

streamlined sales and use tax.

     (b) Seller administrative deduction. A seller shall be permitted to deduct and retain one

percent (1%) of prepaid wireless E911 charges that are collected by the seller from consumers.

     (c) Audit and appeal procedures. The audit and appeal procedures applicable to sales and

use tax under § 44-19-18 of the general laws shall apply to prepaid wireless E911 charges.

     (d) Exemption documentation. The division shall establish procedures by which a seller of

prepaid wireless telecommunications service may document that a sale is not a retail transaction,

which procedures shall substantially coincide with the procedures form documenting sale for resale

transactions for sales tax purposes under § 44-19-18 of the general laws.

     (e) All E-911 fees collected pursuant to this section shall be deposited as general revenues

in a restricted receipt account and used solely for the operation of the E 9-1-1 uniform emergency

telephone system.

     SECTION 10. Section 42-7.2-10 of the General Laws in Chapter 42-7.2 entitled "Office of

Health and Human Services" is hereby amended to read as follows:

     42-7.2-10. Appropriations and disbursements.

     (a) The general assembly shall annually appropriate such sums as it may deem necessary

for the purpose of carrying out the provisions of this chapter. The state controller is hereby

authorized and directed to draw his or her orders upon the general treasurer for the payment of such

sum or sums, or so much thereof as may from time to time be required, upon receipt by him or her

of proper vouchers approved by the secretary of the executive office of health and human services,

or his or her designee.

     (b) For the purpose of recording federal financial participation associated with qualifying

healthcare workforce development activities at the state’s public institutions of higher education,

and pursuant to the Rhode Island Designated State Health Programs (DSHP), as approved by CMS

October 20, 2016 in the 11-W-00242/1 amendment to Rhode Island’s section 1115 Demonstration

Waiver, there is hereby established a restricted receipt account entitled “Health System

Transformation Project” in the general fund of the state and included in the budget of the office of

health and human services.

     SECTION 11. Section 42-9-19 of the General Laws in Chapter 42-19 entitled "Department

of Attorney General" is hereby amended to read as follows:

     42-9-19. Acceptance of settlements - Attorney General settlement restricted account.

     (a) The attorney general is hereby authorized and empowered to accept in the name of the

state any settlement resulting from a multi-state initiative. The attorney general is additionally

authorized and empowered to recover attorneys' fees and costs which shall be considered settlement

proceeds for purposes of this chapter.

     (b) Such settlement proceeds shall be transferred to the general treasurer for deposit in the

general fund. The general treasurer shall transfer ten percent (10%) of such proceeds, up to sixty

five thousand dollars ($65,000) in any fiscal year, to the "attorney general multi-state initiative

restricted receipt account." The restricted receipt account shall be used solely to pay for any fees or

membership dues staff, operational, and litigation costs associated with multi-state initiatives.

     (c) Expenditure of all settlement proceeds accepted by the attorney general as part of the

terms of the relevant master settlement agreement shall be subject to the annual appropriation

process and approval by the general assembly.

     SECTION 12. Section 42-11-2.5 of the General Laws in Chapter 42-11 entitled

"Department of Administration" is hereby amended to read as follows:

     42-11-2.5. Information technology investment fund.

     (a) All sums from the sale of any land and the buildings and improvements thereon, and

other real property, title to which is vested in the state, except as provided in §§ 37-7-15(b) and 37-

7-15(c), shall be transferred to an information technology investment fund restricted-receipt

account that is hereby established. This fund shall consist of such sums from the sale of any land

and the buildings and improvements thereon, and other real property, title to which is vested in the

state, except as provided in §§ 37-7-15(b) and 37-7-15(c), as well as a share of emergency services

and first response surcharge revenues collected under the provisions of § 39-21.1-14. This fund

may also consist of such sums as the state may from time to time appropriate; as well as money

received from the disposal of information technology equipment, loan, interest, and service charge

payments from benefiting state agencies; as well as interest earnings, money received from the

federal government, gifts, bequest, donations, or otherwise from any public or private source. Any

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

     (b) This fund shall be used for the purpose of acquiring information technology

improvements, including, but not limited to: hardware, software, consulting services, and ongoing

maintenance and upgrade contracts for state departments and agencies.

     (c) The division of enterprise technology strategy and service of the Rhode Island

department of administration shall adopt rules and regulations consistent with the purposes of this

chapter and chapter 35 of title 42, in order to provide for the orderly and equitable disbursement of

funds from this account.

     (d) For all requests for proposals that are issued for information technology projects, a

corresponding information technology project manager shall be assigned.

     SECTION 13. Sections 7, 8, 9 and 12 shall take effect October 1, 2019. The remaining

sections of this article shall take effect upon passage.