2021 -- H 6428

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LC002741

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

     Introduced By: Representative Christopher R. Blazejewski

     Date Introduced: June 16, 2021

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 3-7-16.3 of the General Laws in Chapter 3-7 entitled "Retail

Licenses" is hereby amended to read as follows:

     3-7-16.3. Class T legitimate theater license.

     (a) Legitimate theaters as defined in subsection (b) or subsection (c) may apply for a Class

T license. The license authorizes the holder of the license to keep for sale and to sell beverages at

retail in the place described in the license and to deliver those beverages for consumption on the

premises where sold at the times when scheduled events relating to art, the legitimate theatre

theater or community artistic experiences may be held on those premises and for a period of one

hour prior to those events and one hour subsequent thereto, provided those events begin subsequent

to twelve o'clock (12:00) noon. The licensed premises may contain a bar. A Class T license

authorizes entertainment only in conformity with ordinances of the city or town where the facility

is located on the licensed premises. Class T licenses shall only be issued by the local licensing

authority.

     (b) "Legitimate theaters," for the purposes of this section, includes nonprofit, cultural

organizations and for-profit historic theaters located in the city of Newport or the town of

Burrillville whose primary purpose is to provide with a primary purpose of providing a support

system to deliver and coordinate various arts activities for the benefit of the communities they the

theaters serve or that provide live, regularly scheduled theatrical productions on a regular basis

throughout the year and all events contributing toward the goal of providing quality artistic

experiences for the community.

     (c) For purposes of this section, "legitimate theaters" shall also include facility management

corporations that are contractually authorized to manage buildings owned or under the authority of

the Rhode Island Convention Center Authority whose with a primary purpose is to provide of

providing a support system to deliver and coordinate various arts activities for the benefit of the

communities they the corporations serve or that provide live, regularly scheduled theatrical

productions on a regular basis throughout the year and all events contributing toward the goal of

providing quality artistic experiences for the community.

     SECTION 2. Section 15-8.1-402 of the General Laws in Chapter 15-8.1 entitled "Uniform

Parentage Act [Effective January 1, 2021]" is hereby amended to read as follows:

     15-8.1-402. Challenge to presumed parent. [Effective January 1, 2021.]

     (a) Except as provided in subsection (b) of this section, a proceeding to challenge the

parentage of an individual whose parentage is presumed under § 15-8.1-401, shall be commenced

within two (2) years after the birth of the child.

     (b) A proceeding to challenge the parentage of an individual whose parentage is presumed

under § 15-8.1-401, may be commenced two (2) years or more after the birth of the child in the

following circumstances:

     (1) A presumed parent who is not the genetic parent of a child and who could not

reasonably have known about the birth of the child may commence a proceeding under this section

within two (2) years after learning of the child's birth.

     (2) An alleged genetic parent who did not know of the potential genetic parentage of a child

and who could not reasonably have known on account of material misrepresentation or concealment

may commence a proceeding under this section within two (2) years after discovering the potential

genetic parentage.

     If the person is adjudicated to be the genetic parent of the child, the court may not

disestablish a presumed parent.

     (3) Regarding a presumption under § 15-8.1-401(a)(4), another parent of the child may

challenge a presumption of parentage if that parent openly held out the child as the presumptive

parent's child due to duress, coercion, or threat of harm. Evidence of duress, coercion, or threat of

harm may include whether within the prior ten (10) years, the person presumed to be a parent

pursuant to § 15-8.1-401(a)(4), has been convicted of domestic assault, sexual assault, or sexual

exploitation of the child or another parent of the child, was subject to a final abuse protection order

pursuant to chapter 15 of title 15, because the person was found to have committed abuse against

the child or another parent of the child, or was substantiated for abuse against the child or another

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parent of the child pursuant to § 11-9-5.3.

     (c) Challenges under this subsection section shall be addressed adjudicated pursuant to §

15-8.1-206.

     SECTION 3. Section 15-8.1-603 of the General Laws in Chapter 15-8.1 entitled "Uniform

Parentage Act [Effective January 1, 2021]" is hereby amended to read as follows:

     15-8.1-603. Authority to order or deny genetic testing. [Effective January 1, 2021.]

     (a) Except as otherwise provided in this chapter, in a proceeding pursuant to this chapter

to determine parentage, the court shall order the child and any other individual to submit to genetic

testing if a request for testing is supported by the sworn statement of a party:

     (1) Alleging a reasonable possibility that the individual is the child's genetic parent; or

     (2) Denying genetic parentage of the child and stating facts establishing a reasonable

possibility that the individual is not a genetic parent.

     (b) Prior to a proceeding to establish genetic parentage and/or support in conformance with

the state's obligations under Chapter Title IV, Part D of the federal Social Security Act, 42 U.S.C.

§ 651 et seq., if the alleged genetic parent in response to a complaint supported by a sworn affidavit,

filed by the office of child support services, denies parentage, the office of child support services

shall have the authority to administratively order the parties to undergo genetic testing as described

above, without the necessity of making application to the court, and the parties shall attend and

submit to genetic testing under penalty of default.

     (c) The office of child support services may order genetic testing only if there is no

presumed, acknowledged, or adjudicated parent of a child other than the individual who gave birth

to the child.

     (d) The court or office of child support services shall not order in utero genetic testing.

     (e) If two (2) or more individuals are subject to court-ordered genetic testing, the court may

order that testing be completed concurrently or sequentially.

     (f) Genetic testing of an individual who gave birth to a child is not a condition precedent

to testing of the child and an individual whose genetic parentage of the child is being determined.

If the individual who gave birth is unavailable or declines to submit to genetic testing, the court

may order genetic testing of the child and each individual whose genetic parentage of the child is

being adjudicated.

     (g) In a proceeding to adjudicate parentage of a child having an acknowledged, adjudicated,

de facto, presumed parent or intended parent, the court may deny a motion seeking an order for

genetic testing or deny admissibility of the test results at trial if it determines that:

     (1) The conduct of the parties estops a party from denying parentage; or

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     (2) It would be an inequitable interference with the relationship between the child and an

acknowledged, adjudicated, de facto, presumed, or intended parent, or would otherwise be contrary

to the best interests of the child as provided in subsection (h) of this section.

     (h) In determining whether to deny a motion seeking an order for genetic testing under this

chapter or a request for admission of such test results at trial, the court shall consider the best

interests of the child, including the following factors, if relevant:

     (1) The length of time between the proceeding to adjudicate parentage and the time that a

parent was placed on notice that genetic parentage is at issue;

     (2) The length of time during which the parent has assumed a parental role for the child;

     (3) The facts surrounding discovery that genetic parentage is at issue;

     (4) The nature of the relationship between the child and the parent;

     (5) The age of the child;

     (6) Any adverse effect on the child that may result if parentage is successfully disproved;

     (7) The nature of the relationship between the child and any alleged parent;

     (8) The extent to which the passage of time reduces the chances of establishing the

parentage of another individual and a child support obligation in favor of the child; and

     (9) Any additional factors that may affect the equities arising from the disruption of the

relationship between the child and the parent or the chance of an adverse effect on the child.

     SECTION 4. Section 16-21-3.1 of the General Laws in Chapter 16-21 entitled "Health and

Safety of Pupils" is hereby amended to read as follows:

     16-21-3.1. Approval.

     (a) It shall be the duty of the superintendent of schools, private school official, or in the

case of state operated schools, the responsibility of the director of the state operated school, to

ensure that schools are not opened until notification is received from the aforementioned agencies

mentioned in § 16-21-2 that the schools are in compliance with their respective codes.

     (b) Neglect by any superintendent, private school official, or the director of any state

operated school to comply with the provisions of this section shall be a misdemeanor punishable

by a fine of not exceeding five hundred dollars ($500).

     SECTION 5. Section 17-9.1-8 of the General Laws in Chapter 17-9.1 entitled "Registration

of Voters" is hereby amended to read as follows:

     17-9.1-8. Registration at designated agencies.

     (a) Every person who is or may be by the next general election qualified to vote may

register to vote when being discharged from incarceration or when applying for services or

assistance at any of the following offices:

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     (1) Any office in the state that provides public assistance;

     (2) At or through any offices in the state that provide state-funded programs primarily

engaged in providing services to persons with disabilities;

     (3) At armed forces recruitment offices, subject to procedures developed by the state board

in cooperation with the United States Department of Defense;

     (4) At or through the department of corrections; and

     (5) At any other agencies within the state that shall be determined by the state board.

     (b) Voter registration agencies designated by the state board may include, but are not

limited to:

     (1) State or local government offices such as public libraries, public schools, offices of city

and towns clerks (including marriage license bureaus), fishing and hunting license bureaus,

government revenue offices, unemployment compensation offices, and offices not described in

subsection (a)(2) of this section that provide services to persons with disabilities; and

     (2) Federal and nongovernmental offices, with the agreement of those offices.

     (c)(1) Persons must be provided this opportunity to register to vote not only at the time of

their original application for services, but also when filing any recertification, renewal, or for a

change of address relating to those services. Agencies providing voter registration assistance must

offer the same degree of assistance to individuals in completing a voter registration form as they

offer to individuals in completing the agency's own forms, unless the applicant refuses the

assistance.

     (2) Any person who provides voter registration assistance services in an agency is

prohibited from:

     (i) Seeking to influence an applicant's party preference or party registration;

     (ii) Displaying any political preference or party allegiance;

     (iii) Making any statement or taking any action whose the purpose or effect of which is to

discourage the applicant from registering to vote; or

     (iv) Making any statement or taking any action whose the purpose or effect of which is to

lead the applicant to believe that a decision whether or not to register has any bearing on the

availability of services or benefits or on discharge from incarceration.

     (d)(1) Those who decline to register to vote must do so in writing or by failing to check a

box on a form containing the question: "If you are not registered to vote where you live now, would

you like to apply to register to vote here today? yes or no."

     (2) The declination may be included in the agency application for services or on a separate

form provided by the agency, subject to rules and regulations to be adopted by the state board.

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     (3) No information regarding a person's declination to register to vote may be used for any

purpose other than voter registration. If an individual does register to vote, the particular agency at

which the applicant submits a voter registration application may not be publicly disclosed.

     (4) The declination form to be used at agencies providing public or publicly funded

assistance shall also contain the following statements and information:

     (i) "Applying to register or declining to register to vote will not affect the amount of

assistance that you will be provided by this agency"; or, for those forms made available by the

department of corrections: "Applying to register or declining to register to vote will not affect your

discharge from incarceration";

     (ii) "If you do not check either box, you will be considered to have decided not to register

to vote at this time." (with "yes" and "no" boxes being provided);

     (iii) "If you would like help filling out the voter registration application form, we will help

you. The decision whether to seek or accept help is yours. You may fill out the application form in

private";

     (iv) "If you believe that someone has interfered with your right to register or to decline to

register to vote, your right to privacy in deciding whether to register or in applying to register to

vote, or your right to choose your own political party or other political preference, you may file a

complaint with the State Board of Elections, 2000 Plainfield Pike, Cranston, Rhode Island 02921,

(401) 222-2345";

     (v) A statement that if the applicant declines to register to vote, his or her decision will

remain confidential and be used only for voter registration purposes; and

     (vi) A statement that if the applicant does register to vote, information regarding the agency

to which the application was submitted will remain confidential, to be used only for voter

registration purposes.

     (e)(1) The registration form to be provided in these agencies shall be the mail registration

form adopted by the state board. Unless the registrant refuses to permit the agency to transmit the

form to the state board or local board where the applicant resides, the agency shall transmit the

completed registration form to the state board or any local board. However, if the registrant refuses,

the registrant may either mail the form to the state board or any local board or may provide for

delivery of the form to the state board or any local board either in person or through a third party.

It shall be the responsibility of all state or state-funded agencies to have available at all times a

sufficient number of voter registration forms in order to carry out the provisions of this section.

     (2) Unless the applicant refuses to permit the agency to transmit the completed voter

registration form to the state board or to a local board, the agency shall be required to transmit the

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registration form within ten (10) days after acceptance, or if accepted on the last day or within five

(5) days before the last day to register for an election, within five (5) days of acceptance.

     (f) The department of corrections and each agency designated by the board to register

persons to vote when applying for services or assistance shall report to the state board:

     (1) The number of persons applying for services and assistance or the number of persons

discharged from incarceration following felony convictions who are eligible to vote;

     (2) The number of persons who have been registered to vote at that agency;

     (3) The number of forms that have been transmitted by the agency to the state or local

board; and

     (4) The number of persons who have declined to register to vote at that agency. Reports to

the state board by each designated agency shall be on a quarterly basis.

     (g) Any person who has fully and correctly completed an application to register to vote at

a designated agency is presumed to be registered as of the date of the acceptance of the registration

by the designated agency, subject to verification of the registration by the state board or any local

board as provided in § 17-9.1-25.

     (h) If a voter registration agency which is primarily engaged in providing services to

persons with disabilities provides those services at the person's home, the agency shall provide the

voter registration services authorized by this section at the person's home.

     (i) The state board of elections shall have the authority to adopt regulations to implement

and administer the provisions of this section, including all registrations taken at designated

agencies.

     (j) In cases where the findings required by § 17-6-1.2(a)(4) have been made, transmission

shall be made by electronic means as prescribed by the secretary of state, and shall be in an

electronic form compatible with the voter registration system maintained by the secretary of state.

     SECTION 6. Section 27-2.4-16 of the General Laws in Chapter 27-2.4 entitled "Producer

Licensing Act" is hereby amended to read as follows:

     27-2.4-16. Notification to insurance commissioner of termination.

     (a) Termination for cause. An insurer or authorized representative of the insurer that

terminates the employment contract or other insurance business relationship with an insurance

producer shall notify the insurance commissioner within thirty (30) days following the effective

date of the termination, using a format prescribed by the insurance commissioner, if the reason for

termination is one of the reasons set forth in § 27-2.4-14 or the insurer has knowledge the insurance

producer was found by a court, government body, or self-regulatory organization authorized by law

to have engaged in any of the activities in § 27-2.4-14. Upon the written request of the insurance

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commissioner, the insurer shall provide additional information, documents, records or other data

pertaining to the termination or activity of the insurance producer.

     (b) Ongoing notification requirement. The insurer or the authorized representative of the

insurer shall promptly notify the insurance commissioner in a format acceptable to the insurance

commissioner if, upon further review or investigation, the insurer discovers additional information

that would have been reportable to the insurance commissioner in accordance with subsection (a)

of this section had the insurer then known of its existence.

     (c) Copy of notification to be provided to the insurance producer.

     (1) Within fifteen (15) days after making the notification required by subsections (a),

and (b) of this section and (c), the insurer shall mail a copy of the notification to the insurance

producer at his or her last known address. If the insurance producer is terminated for cause

for any of the reasons listed in § 27-2.4-14, the insurer shall provide a copy of the notification

to the insurance producer at his or her last known address by certified mail, return receipt

requested, postage prepaid or by overnight delivery using a nationally recognized carrier.

     (2) Within thirty (30) days after the insurance producer has received the original or

additional notification, the insurance producer may file written comments concerning the substance

of the notification with the insurance commissioner. The insurance producer shall, by the same

means, simultaneously send a copy of the comments to the reporting insurer, and the comments

shall become a part of the insurance commissioner's file and accompany every copy of a report

distributed or disclosed for any reason about the insurance producer as permitted under subsection

(e) of this section.

     (d) Immunities.

     (1) In the absence of actual malice, an insurer, the authorized representative of the insurer,

an insurance producer, the insurance commissioner, or an organization of which the insurance

commissioner is a member and that compiles the information and makes it available to other

insurance commissioners or regulatory or law enforcement agencies shall not be subject to civil

liability, except as provided in this section, and a civil cause of action of any nature shall not arise

against these entities or their respective agents or employees, except as provided in this section, as

a result of any statement or information required by or provided pursuant to this section or any

information relating to any statement that may be requested in writing by the insurance

commissioner, from an insurer or insurance producer; or a statement by a terminating insurer or

insurance producer to an insurer or insurance producer limited solely and exclusively to whether a

termination for cause under subsection (a) of this section was reported to the insurance

commissioner, provided that the propriety of any termination for cause under subsection (a) of this

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section is certified in writing by an officer or authorized representative of the insurer or insurance

producer terminating the relationship.

     (2) In any action brought against a person that may have immunity under this chapter for

making any statement required by this section or providing any information relating to any

statement that may be requested by the insurance commissioner, the party bringing the action shall

plead specifically in any allegation that subdivision (d)(1) of this section does not apply because

the person making the statement or providing the information did so with actual malice.

     (3) This chapter shall not abrogate or modify any existing statutory or common law

privileges or immunities.

     (e) Confidentiality.

     (1) Any documents, materials or other information in the control or possession of the

department that is furnished by an insurer, insurance producer or an employee or agent of the

insurer or insurance producer acting on behalf of the insurer or insurance producer, or obtained by

the insurance commissioner in an investigation pursuant to this section, shall be confidential by law

and privileged, shall not be subject to chapter 2 of title 38, shall not be subject to subpoena, and

shall not be subject to discovery or admissible in evidence in any private civil action. The insurance

commissioner is authorized to use the documents, materials or other information in the furtherance

of any regulatory or legal action brought as a part of the insurance commissioner's duties.

     (2) Neither the insurance commissioner nor any person who received documents, materials

or other information while acting under the authority of the insurance commissioner shall be

permitted or required to testify in any private civil action concerning any confidential documents,

materials, or information subject to this chapter.

     (3) In order to assist in the performance of the insurance commissioner's duties under this

chapter, the insurance commissioner:

     (i) May share documents, materials or other information, including the confidential and

privileged documents, materials or information subject to this chapter, with other state, federal, and

international regulatory agencies, with the NAIC, its affiliates or subsidiaries, and with state,

federal, and international law enforcement authorities, provided that the recipient agrees to

maintain the confidentiality and privileged status of the document, material or other information;

     (ii) May receive documents, materials or information, including confidential and privileged

documents, materials or information, from the NAIC, its affiliates or subsidiaries and from

regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall

maintain as confidential or privileged any document, material or information received with notice

or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the

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source of the document, material or information;

     (iii) May enter into agreements governing sharing and use of information consistent with

this subsection;

     (iv) No waiver of any applicable privilege or claim of confidentiality in the documents,

materials, or information shall occur as a result of disclosure to the commissioner under this section

or as a result of sharing as authorized in this chapter;

     (v) Nothing in this chapter shall prohibit the insurance commissioner from releasing final,

adjudicated actions including for cause terminations that are open to public inspection pursuant to

chapter 2 of title 38 to a database or other clearinghouse service maintained by the NAIC, its

affiliates or subsidiaries; and

     (vi) If the department releases to an unauthorized third party any documents, materials or

other information provided to the department pursuant to this section, then the department shall be

subject to a fine not to exceed one thousand dollars ($1,000) after a hearing on this violation brought

in the Superior Court.

     (f) Penalties for failing to report. An insurer, the authorized representative of the insurer,

or insurance producer that fails to report as required under the provisions of this section or that is

found to have reported with actual malice by a court of competent jurisdiction may, after notice

and hearing, have its license or certificate of authority suspended or revoked and may be fined in

accordance with § 42-14-16.

     SECTION 7. Sections 27-74-4, 27-74-5, 27-74-8 and 27-74-13 of the General Laws in

Chapter 27-74 entitled "Discount Medical Plan Organization Act" are hereby amended to read as

follows:

     27-74-4. Applicability and scope.

     (a) This chapter applies to all discount medical plan organizations doing business in or

from this state.

     (b) A discount medical plan organization that is a licensed health insurer or health

maintenance organization or a nonprofit hospital and medical service corporation is not required to

obtain a certificate of registration under § 27-73-5 27-74-5, except that any of its affiliates that

operate as a discount medical plan organization in this state shall obtain a certificate of registration

under § 27-73-5 27-74-5 and comply with all other provisions of this act; but such health insurer,

health maintenance organization or nonprofit hospital and medical service corporation is required

to comply with §§ 27-73-8 27-74-8, 27-73-9 27-74-9, 27-73-10 27-74-10, and 27-73-11 27-74-11

and report, in the form and manner as the commissioner may require, any of the information

described in § 27-73-13 27-74-13 that is not otherwise already reported.

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     27-74-5. Registration requirements.

     (a) Before doing business in or from this state as a discount medical plan organization, a

person shall obtain a certificate of registration from the commissioner to operate as a discount

medical plan organization.

     (b) Each application for a certificate of registration to operate as a discount medical plan

organization:

     (1) Shall be in a form prescribed by the commissioner and verified by an officer or

authorized representative of the applicant;

     (2) Shall be accompanied by a fee of two hundred fifty dollars ($250) payable to the State

of Rhode Island;

     (3) Shall include information on whether:

     (i) A previous application for a certificate of registration, license or permit to operate as a

medical discount plan has been denied, revoked, suspended or terminated for cause in any

jurisdiction (including Rhode Island); and

     (ii) The applicant is under investigation for or the subject of any pending action or has been

found in violation of a statue or regulation in any jurisdiction (including Rhode Island) within the

previous five (5) years;

     (4) Shall include information, as the commissioner may require, that permits the

commissioner, after reviewing all of the information submitted pursuant to this subsection, to make

a determination that the applicant:

     (i) Is financially responsible;

     (ii) Has adequate expertise or experience to operate a discount medical plan organization;

and

     (iii) Is of good character.

     (c) After the receipt of an application filed pursuant to this section, the commissioner shall

review the application and notify the applicant of any deficiencies in the application.

     (d) Within ninety (90) days after the date of receipt of a completed application, the

commissioner shall:

     (1) Issue a certificate of registration if the commissioner is satisfied that the applicant has

met the requirements of this chapter and any regulations promulgated thereunder or

     (2) Disapprove the application and state the ground(s) for disapproval. The commissioner

shall notify the applicant in writing specifically stating the ground(s) for the disapproval. Upon

such notification, the applicant may, within thirty (30) days, request a hearing on the matter to be

conducted in accordance with the "Administrative Procedures act," chapter 35 of title 42.

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     (e) Prior to issuance of a certificate of registration by the commissioner, each discount

medical plan organization shall establish an Internet website in order to conform to the

requirements of subsection 27-73-9(f) 27-74-9(f).

     (f) A registration is effective for two (2) years, unless prior to its expiration it is renewed

in accordance with this section or suspended or revoked. At least ninety (90) days before a

certificate of registration expires, the discount medical plan organization shall submit a renewal

application form and the renewal fee. The commissioner shall renew the certificate of registration

of each holder that meets the requirements of this chapter and any regulations promulgated

thereunder and pays the renewal fee. The renewal application shall be substantially the same as an

original application and the renewal fee shall be two hundred fifty dollars ($250) payable to the

State of Rhode Island.

     (g) The commissioner may suspend the authority of a discount medical plan organization

to enroll new members or refuse to renew or revoke a discount medical plan organization's

certificate of registration if the commissioner finds that any of the following conditions exist:

     (1) The discount medical plan organization is not operating in compliance with this chapter

and any regulations promulgated thereunder;

     (2) The discount medical plan organization has advertised, merchandised or attempted to

merchandise its services in such a manner as to misrepresent its services or capacity for service or

has engaged in deceptive, misleading or unfair practices with respect to advertising or

merchandising;

     (3) The discount medical plan organization is not fulfilling its obligations as a discount

medical plan organization; or

     (4) The continued operation of the discount medical plan organization would be hazardous

to its members.

     (h) If the commissioner has cause to believe that grounds for the nonrenewal, suspension

or revocation of a certificate of registration exists, the commissioner shall notify the discount

medical plan organization in writing specifically stating the ground(s) for the refusal to renew or

suspension or revocation. Upon such notification, the discount medical plan may, within thirty (30)

days, request a hearing on the matter to be conducted in accordance with the "Administrative

Procedures act," chapter 35 of title 42.

     (i) When the certificate of registration of a discount medical plan organization is

nonrenewed, surrendered or revoked, the discount medical plan organization shall proceed,

immediately following the effective date of the order of revocation or, in the case of a nonrenewal,

the date of expiration of the certificate of registration, to wind up its affairs transacted under the

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certificate of registration. The discount medical plan organization shall not engage in any further

advertising, solicitation, collecting of fees or renewal of contracts. The commissioner may, in his

sole discretion and upon a showing of good cause, in the case of a registration of a discount medical

plan organization that has been revoked or nonrenewed by the commissioner, allow the discount

medical plan organization to continue to operate under any conditions and restrictions established

by the commissioner, pending the outcome of a hearing requested pursuant to subsection (h) of this

section.

     (j) The commissioner shall, in an order suspending the authority of the discount medical

plan organization to enroll new members, specify the period during which the suspension is to be

in effect and the conditions, if any, that must be met by the discount medical plan organization prior

to reinstatement of its certificate of registration to enroll members. The commissioner may rescind

or modify the order of suspension prior to the expiration of the suspension period. The certificate

of registration of a discount medical plan organization shall not be reinstated unless requested by

the discount medical plan organization. The commissioner shall not grant the request for

reinstatement if the commissioner finds that the circumstances for which the suspension occurred

still exist or are likely to recur.

     (k) In lieu of suspending or revoking a discount medical plan organization's certificate of

registration, whenever the discount medical plan organization has been found to have violated any

provision of this chapter, the commissioner may:

     (1) Issue and cause to be served upon the organization charged with the violation a copy of

the findings and an order requiring the organization to immediately cease and desist from engaging

in the act or practice that constitutes the violation; and

     (2) Impose any penalty provided for under § 42-14-16.

     (l) Each registered discount medical plan organization shall notify the commissioner

immediately whenever the discount medical plan organization's certificate of registration, or other

form of authority, to operate as a discount medical plan organization in another jurisdiction is

suspended, revoked or nonrenewed in that state.

     (m) A provider who provides discounts to his or her own patients without any cost or fee

of any kind to the patient is not required to obtain and maintain a certificate of registration under

this chapter as a discount medical plan organization.

     27-74-8. Charges and fees -- Refund requirements -- Bundling of services.

     (a) A discount medical plan organization may charge a periodic charge as well as a

reasonable one-time processing fee for a discount medical plan.

     (b) If a member cancels his or her membership in the discount medical plan organization

LC002741 - Page 13 of 33

within the first thirty (30) days after the date of receipt of the written document for the discount

medical plan described in § 27-73-11(e) 27-74-11(e), the member shall receive a reimbursement

of all periodic charges and the amount of any one-time processing fee that exceeds twenty dollars

($20.00) upon return of the discount medical plan card to the discount medical plan organization.

     (c) Cancellation occurs when notice of cancellation is given to the discount medical plan

organization. Notice of cancellation is deemed given when delivered by hand or deposited in a

mailbox, properly addressed and postage prepaid to the mailing address of the discount medical

plan organization or emailed to the email address of the discount medical plan organization.

     (d) A discount medical plan organization shall return any periodic charge charged or

collected after the member has returned the discount medical plan card or given the discount

medical plan organization notice of cancellation.

     (e) If the discount medical plan organization cancels a membership for any reason other

than nonpayment of charges by the member, the discount medical plan organization shall make a

pro rata reimbursement of all periodic charges to the member.

     (f) When a marketer or discount medical plan organization sells a discount medical plan in

conjunction with any other products, the marketer or discount medical plan organization shall:

     (1) Provide the charges for each discount medical plan in writing to the member; or

     (2) Reimburse the member for all periodic charges for the discount medical plan and all

periodic charges for any other product if the member cancels his or her membership in accordance

with this section.

     (g) Any discount medical plan organization that is a health carrier that provides a discount

medical plan product that is incidental to the insured product is not subject to this section.

     27-74-13. Annual reports.

     (a) If the information required in subsection (b) of this section is not provided at the time

of renewal of a certificate of registration under § 27-73-5 27-74-5, a discount medical plan

organization shall file an annual report with the commissioner in the form prescribed by the

commissioner, within three (3) months after the end of each fiscal year.

     (b) The report shall include:

     (1) If different from the initial application for a certificate of registration or at the time of

renewal of a certificate of registration or the last annual report, as appropriate, a list of the names

and residence addresses of all persons responsible for the conduct of the organization's affairs,

together with a disclosure of the extent and nature of any contracts or arrangements with these

persons and the discount medical plan organization, including any possible conflicts of interest;

     (2) The number of discount medical plan members in the state; and

LC002741 - Page 14 of 33

     (3) Any other information relating to the performance of the discount medical plan

organization that may be required by the commissioner.

     (c) Any discount medical plan organization that fails to file an annual report in the form

and within the time required by this section shall:

     (1) Forfeit:

     (i) Up to five hundred dollars ($500) each day for the first ten (10) days during which the

violation continues; and

     (ii) Up to one thousand dollars ($1,000) each day after the first ten (10) days during which

the violation continues; and

     (2) Upon notice by the commissioner, lose its authority to enroll new members or to do

business in this state while the violation continues.

     SECTION 8. Section 31-3-31.3 of the General Laws in Chapter 31-3 entitled "Registration

of Vehicles" is hereby amended to read as follows:

     31-3-31.3. Registration of specially constructed vehicles.

     (a) A "specially constructed vehicle" means every vehicle of a type that must be registered

under chapters 3 through 9 of this title, but not originally constructed under a distinctive name,

make, model, or type by a generally recognized manufacturer of vehicles.

     (b) Specially constructed vehicles shall be subject to the registration fees in § 31-6-1.

     (c) Before a specially constructed vehicle can be registered, it must undergo an inspection

by the division of motor vehicles to determine whether the vehicle was designed for and may be

safely operated on public roads, and meets all necessary safety standards. Only those specially

constructed vehicles that are deemed by the division of motor vehicles to be designed for use on

public roads and meeting all necessary safety standards shall be registered. Specially constructed

vehicles that are registered shall be subject to inspection pursuant to chapter 38-4 of this title § 31-

38-4 to ensure that the vehicle continues to meet all necessary safety standards.

     SECTION 9. Section 36-10-35 of the General Laws in Chapter 36-10 entitled "Retirement

System - Contributions and Benefits" is hereby amended to read as follows:

     36-10-35. Additional benefits payable to retired employees.

     (a) All state employees and all beneficiaries of state employees receiving any service

retirement or ordinary or accidental disability retirement allowance pursuant to the provisions of

this title on or before December 31, 1967, shall receive a cost of living retirement adjustment equal

to one and one-half percent (1.5%) per year of the original retirement allowance, not compounded,

for each calendar year the retirement allowance has been in effect. For the purposes of computation,

credit shall be given for a full calendar year regardless of the effective date of the retirement

LC002741 - Page 15 of 33

allowance. This cost of living adjustment shall be added to the amount of the retirement allowance

as of January 1, 1968, and an additional one and one-half percent (1.5%) shall be added to the

original retirement allowance in each succeeding year during the month of January, and provided

further, that this additional cost of living increase shall be three percent (3%) for the year beginning

January 1, 1971, and each year thereafter, through December 31, 1980. Notwithstanding any of the

above provisions, no employee receiving any service retirement allowance pursuant to the

provisions of this title on or before December 31, 1967, or the employee's beneficiary, shall receive

any additional benefit hereunder in an amount less than two hundred dollars ($200) per year over

the service retirement allowance where the employee retired prior to January 1, 1958.

     (b) All state employees and all beneficiaries of state employees retired on or after January

1, 1968, who are receiving any service retirement or ordinary or accidental disability retirement

allowance pursuant to the provisions of this title shall, on the first day of January next following

the third anniversary date of the retirement, receive a cost of living retirement adjustment, in

addition to his or her retirement allowance, in an amount equal to three percent (3%) of the original

retirement allowance. In each succeeding year thereafter through December 31, 1980, during the

month of January, the retirement allowance shall be increased an additional three percent (3%) of

the original retirement allowance, not compounded, to be continued during the lifetime of the

employee or beneficiary. For the purposes of computation, credit shall be given for a full calendar

year regardless of the effective date of the service retirement allowance.

     (c)(1) Beginning on January 1, 1981, for all state employees and beneficiaries of the state

employees receiving any service retirement and all state employees, and all beneficiaries of state

employees, who have completed at least ten (10) years of contributory service on or before July 1,

2005, pursuant to the provisions of this chapter, and for all state employees, and all beneficiaries

of state employees who receive a disability retirement allowance pursuant to §§ 36-10-12 -- 36-10-

15, the cost of living adjustment shall be computed and paid at the rate of three percent (3%) of the

original retirement allowance or the retirement allowance as computed in accordance with § 36-

10-35.1, compounded annually from the year for which the cost of living adjustment was

determined to be payable by the retirement board pursuant to the provisions of subsection (a) or (b)

of this section. Such cost of living adjustments are available to members who retire before October

1, 2009, or are eligible to retire as of September 30, 2009.

     (2) The provisions of this subsection shall be deemed to apply prospectively only and no

retroactive payment shall be made.

     (3) The retirement allowance of all state employees and all beneficiaries of state employees

who have not completed at least ten (10) years of contributory service on or before July 1, 2005, or

LC002741 - Page 16 of 33

were not eligible to retire as of September 30, 2009, shall, on the month following the third

anniversary date of retirement, and on the month following the anniversary date of each succeeding

year be adjusted and computed by multiplying the retirement allowance by three percent (3%) or

the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

published by the United States Department of Labor Statistics determined as of September 30 of

the prior calendar year, whichever is less; the cost of living adjustment shall be compounded

annually from the year for which the cost of living adjustment was determined payable by the

retirement board; provided, that no adjustment shall cause any retirement allowance to be decreased

from the retirement allowance provided immediately before such adjustment.

     (d) For state employees not eligible to retire in accordance with this chapter as of

September 30, 2009, and not eligible upon passage of this article, and for their beneficiaries, the

cost of living adjustment described in subsection (3) above shall only apply to the first thirty-five

thousand dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon

the third (3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five (65),

whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by the

percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published

by the United States Department of Labor Statistics determined as of September 30 of the prior

calendar year or three percent (3%), whichever is less. The first thirty-five thousand dollars

($35,000) of retirement allowance, as indexed, shall be multiplied by the percentage of increase in

the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States

Department of Labor Statistics determined as of September 30 of the prior calendar year or three

percent (3%), whichever is less, on the month following the anniversary date of each succeeding

year. For state employees eligible to retire as of September 30, 2009, or eligible upon passage of

this article, and for their beneficiaries, the provisions of this subsection (d) shall not apply.

     (e) All legislators and all beneficiaries of legislators who are receiving a retirement

allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall,

commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to a

retirement allowance, in an amount equal to three percent (3%) of the original retirement allowance.

In each succeeding year thereafter during the month of January, the retirement allowance shall be

increased an additional three percent (3%) of the original retirement allowance, compounded

annually, to be continued during the lifetime of the legislator or beneficiary. For the purposes of

computation, credit shall be given for a full calendar year regardless of the effective date of the

service retirement allowance.

     (f) The provisions of §§ 45-13-7 -- 45-13-10 shall not apply to this section.

LC002741 - Page 17 of 33

     (g) This subsection (g) shall be effective for the period July 1, 2012, through June 30, 2015.

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (g)(2)

below, for all present and former employees, active and retired members, and beneficiaries

receiving any retirement, disability or death allowance or benefit of any kind, the annual benefit

adjustment provided in any calendar year under this section shall be equal to (A) multiplied by (B)

where (A) is equal to the percentage determined by subtracting five and one-half percent (5.5%)

(the "subtrahend") from the Five-Year Average Investment Return of the retirement system

determined as of the last day of the plan year preceding the calendar year in which the adjustment

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

(0%), and (B) is equal to the lesser of the member's retirement allowance or the first twenty-five

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

amount to be indexed annually in the same percentage as determined under (g)(1)(A) above. The

"Five-Year Average Investment Return" shall mean the average of the investment returns of the

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (g)(2)

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially

assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted

either upward or downward in the same amount.

     (2) Except as provided in paragraph (g)(3), the benefit adjustments under this section for

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees'

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police

Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis, exceeds eighty

percent (80%) in which event the benefit adjustment will be reinstated for all members for such

plan year.

     In determining whether a funding level under this paragraph (g)(2) has been achieved, the

actuary shall calculate the funding percentage after taking into account the reinstatement of any

current or future benefit adjustment provided under this section.

     (3) Notwithstanding paragraph (g)(2), in each fifth plan year commencing after June 30,

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (g)(1)

above until the Funded Ratio of the Employees' Retirement System of Rhode Island, the Judicial

Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the system's

actuary on an aggregate basis, exceeds eighty percent (80%).

LC002741 - Page 18 of 33

     (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

(g) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or

prior to June 30, 2012.

     (h) This subsection (h) shall become effective July 1, 2015.

     (1)(A) As soon as administratively reasonable following the enactment into law of this

subsection (h)(1)(A), a one-time benefit adjustment shall be provided to members and/or

beneficiaries of members who retired on or before June 30, 2012, in the amount of 2% of the lesser

of either the member's retirement allowance or the first twenty-five thousand dollars ($25,000) of

the member's retirement allowance. This one-time benefit adjustment shall be provided without

regard to the retiree's age or number of years since retirement.

     (B) Notwithstanding the prior subsections of this section, for all present and former

employees, active and retired members, and beneficiaries receiving any retirement, disability or

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year

under this section for adjustments on and after January 1, 2016, and subject to subsection (h)(2)

below, shall be equal to (I) multiplied by (II):

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

(the "subtrahend") from the five-year average investment return of the retirement system

determined as of the last day of the plan year preceding the calendar year in which the adjustment

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

(0%). The "five-year average investment return" shall mean the average of the investment returns

of the most recent five (5) plan years as determined by the retirement board. In the event the

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i)

plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

     (II) Is equal to the lesser of either the member's retirement allowance or the first twenty-

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

to be indexed annually in the same percentage as determined under subsection (h)(1)(B)(I) above.

     The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to all

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

LC002741 - Page 19 of 33

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

whichever is later.

     (2) Except as provided in subsection (h)(3) of this section, the benefit adjustments under

subsection (h)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio

of the employees' retirement system of Rhode Island, the judicial retirement benefits trust and the

state police retirement benefits trust, calculated by the system's actuary on an aggregate basis,

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

members for such plan year.

     In determining whether a funding level under this subsection (h)(2) has been achieved, the

actuary shall calculate the funding percentage after taking into account the reinstatement of any

current or future benefit adjustment provided under this section.

     (3) Notwithstanding subsection (h)(2), in each fourth plan year commencing after June 30,

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

plan years:

     (i) A benefit adjustment shall be calculated and made in accordance with subsection

(h)(1)(B) above; and

     (ii) Effective for members and/or beneficiaries of members who retired on or before June

30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five thousand eight hundred and

fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six dollars

($31,026) until the funded ratio of the employees' retirement system of Rhode Island, the judicial

retirement benefits trust and the state police retirement benefits trust, calculated by the system's

actuary on an aggregate basis, exceeds eighty percent (80%).

     (i) Effective for members and or beneficiaries of members who have retired on or before

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

days following the enactment of the legislation implementing this provision, and a second one-time

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

payment date and shall not be considered cost of living adjustments under the prior provisions of

this § 36-10-3 36-10-35.

     SECTION 10. Section 42-7.2-6 of the General Laws in Chapter 42-7.2 entitled "Office of

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

     42-7.2-6. Departments assigned to the executive office -- Powers and duties.

     (a) The departments assigned to the secretary shall:

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

LC002741 - Page 20 of 33

and the general policy established by the governor or by the secretary acting on behalf of the

governor or in accordance with the powers and authorities conferred upon the secretary by this

chapter;

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

and/or the secretary; and

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

and/or the secretary to perform the duties set forth in subsection 6 of this chapter § 42-7.2-5. Upon

developing, acquiring or transferring such records and information, the secretary shall assume

responsibility for complying with the provisions of any applicable general or public law, regulation,

or agreement relating to the confidentiality, privacy or disclosure of such records or information.

     (4) Forward to the secretary copies of all reports to the governor.

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

construed to limit or otherwise restrict the department of children, youth and families, the

department of health, the department of human services, and the department of behavioral

healthcare, developmental disabilities and hospitals from fulfilling any statutory requirement or

complying with any valid rule or regulation.

     SECTION 11. Sections 42-12.3-3, 42-12.3-4 and 42-12.3-15 of the General Laws in

Chapter 42-12.3 entitled "Health Care for Children and Pregnant Women" are hereby amended to

read as follows:

     42-12.3-3. Medical assistance expansion for pregnant women/RIte Start.

     (a) The director of the department of human services is authorized to amend its title XIX

state plan pursuant to title XIX of the Social Security Act to provide Medicaid coverage and to

amend its title XXI state plan pursuant to Title XXI of the Social Security Act to provide medical

assistance coverage through expanded family income disregards for pregnant women whose family

income levels are between one hundred eighty-five percent (185%) and two hundred fifty percent

(250%) of the federal poverty level. The department is further authorized to promulgate any

regulations necessary and in accord with title XIX [42 U.S.C. § 1396 et seq.] and title XXI [42

U.S.C. § 1397 42 U.S.C. § 1397aa et seq.] of the Social Security Act necessary in order to

implement said state plan amendment. The services provided shall be in accord with title XIX [42

U.S.C. § 1396 et seq.] and title XXI [42 U.S.C. § 1397 42 U.S.C. § 1397aa et seq.] of the Social

Security Act.

     (b) The director of the department of human services is authorized and directed to establish

a payor of last resort program to cover prenatal, delivery and postpartum care. The program shall

cover the cost of maternity care for any woman who lacks health insurance coverage for maternity

LC002741 - Page 21 of 33

care and who is not eligible for medical assistance under title XIX [42 U.S.C. § 1396 et seq.] and

title XXI [42 U.S.C. § 1397 42 U.S.C. § 1397aa et seq.] of the Social Security Act including, but

not limited to, a noncitizen pregnant woman lawfully admitted for permanent residence on or after

August 22, 1996, without regard to the availability of federal financial participation, provided such

pregnant woman satisfies all other eligibility requirements. The director shall promulgate

regulations to implement this program. Such regulations shall include specific eligibility criteria;

the scope of services to be covered; procedures for administration and service delivery; referrals

for non-covered services; outreach; and public education. Excluded services under this paragraph

subsection will include, but not be limited to, induced abortion except in cases of rape or incest or

to save the life of the pregnant individual.

     (c) The department of human services may enter into cooperative agreements with the

department of health and/or other state agencies to provide services to individuals eligible for

services under subsections (a) and (b) above.

     (d) The following services shall be provided through the program:

     (1) Ante-partum and postpartum care;

     (2) Delivery;

     (3) Cesarean section;

     (4) Newborn hospital care;

     (5) Inpatient transportation from one hospital to another when authorized by a medical

provider; and

     (6) Prescription medications and laboratory tests;.

     (e) The department of human services shall provide enhanced services, as appropriate, to

pregnant women as defined in subsections (a) and (b), as well as to other pregnant women eligible

for medical assistance. These services shall include: care coordination, nutrition and social service

counseling, high risk obstetrical care, childbirth and parenting preparation programs, smoking

cessation programs, outpatient counseling for drug-alcohol use, interpreter services, mental health

services, and home visitation. The provision of enhanced services is subject to available

appropriations. In the event that appropriations are not adequate for the provision of these services,

the department has the authority to limit the amount, scope and duration of these enhanced services.

     (f) The department of human services shall provide for extended family planning services

for up to twenty-four (24) months postpartum. These services shall be available to women who

have been determined eligible for RIte Start or for medical assistance under title XIX [42 U.S.C. §

1396 et seq.] or title XXI [42 U.S.C. § 1397 42 U.S.C. § 1397aa et seq.] of the Social Security Act.

     42-12.3-4. "RIte track" program.

LC002741 - Page 22 of 33

     There is hereby established a payor of last resort program for comprehensive health care

for children until they reach nineteen (19) years of age, to be known as "RIte track." The department

of human services is hereby authorized to amend its title XIX state plan pursuant to title XIX [42

U.S.C. § 1396 et seq.] and title XXI [42 U.S.C. § 1397 42 U.S.C. § 1397aa et seq.] of the Social

Security Act as necessary to provide for expanded Medicaid coverage through expanded family

income disregards for children, until they reach nineteen (19) years of age, whose family income

levels are up to two hundred fifty percent (250%) of the federal poverty level. Provided, however,

that healthcare coverage provided under this section shall also be provided in accordance to Title

XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., to a noncitizen child who is lawfully

residing in the United States, and who is otherwise eligible for such assistance. The department is

further authorized to promulgate any regulations necessary, and in accord with title XIX [42 U.S.C.

§ 1396 et seq.] and title XXI [42 U.S.C. § 1397 42 U.S.C. § 1397aa et seq.] of the Social Security

Act as necessary in order to implement the state plan amendment. For those children who lack

health insurance, and whose family incomes are in excess of two hundred fifty percent (250%) of

the federal poverty level, the department of human services shall promulgate necessary regulations

to implement the program. The department of human services is further directed to ascertain and

promulgate the scope of services that will be available to those children whose family income

exceeds the maximum family income specified in the approved title XIX [42 U.S.C. § 1396 et seq.]

and title XXI [42 U.S.C. § 1397 42 U.S.C. § 1397aa et seq.] state plan amendment.

     42-12.3-15. Expansion of RIte track program.

     The Department of Human Services is hereby authorized and directed to submit to the

United States Department of Health and Human Services an amendment to the "RIte Care" waiver

project number 11-W-0004/1-01 to provide for expanded Medicaid coverage for children until they

reach eight (8) years of age, whose family income levels are to two hundred fifty percent (250%)

of the federal poverty level. Expansion of the RIte track program from the age of six (6) until they

reach eighteen (18) years of age in accordance with this chapter shall be subject to the approval of

the amended waiver by the United States Department of Health and Human Services. Healthcare

coverage under this section shall also be provided to a noncitizen child lawfully residing in the

United States, and who is otherwise eligible for such assistance under title XIX [42 U.S.C. § 1396

et seq.] or title XXI [42 U.S.C. § 1397 42 U.S.C. § 1397aa et seq.]

     SECTION 12. Section 42-14-9 of the General Laws in Chapter 42-14 entitled "Department

of Business Regulation" is hereby amended to read as follows:

     42-14-9. Payment of expenses -- Fees.

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

LC002741 - Page 23 of 33

for the payment of the salary of the administrator of banking and insurance, for the payment of the

salaries of his or her deputies and for the payment of the clerical and other assistance, office and

traveling expenses of the administrator of banking and insurance, his or her deputies and assistants,

and the state controller is hereby authorized and directed to draw his or her orders for the payment

of those sums, or so much of them as may from time to time be required, upon receipt by him or

her of proper vouchers, approved by the director of business regulation. All fees, charges for

examinations and other collections received by him or her as administrator of banking, insurance,

and securities shall be paid to the general treasurer for the use of the state.

     (b) Reimbursements.

     (1) Certain operational costs of the department of business regulation are eligible for

reimbursement from third parties, including, but not limited to, costs of licensing, and shall also

include the following expenses:

     (i) All reasonable technology costs related to the examination and licensing process.

Technology costs shall include the actual cost of software and hardware utilized in the licensing

process and the cost of training personnel in the proper use of the software or hardware.

     (ii) All necessary and reasonable education and training costs incurred by the state to

maintain the proficiency and competence of the examining and licensing personnel. All these costs

shall be incurred in accordance with appropriate state of Rhode Island regulations, guidelines and

procedures.

     (iii) All revenues collected pursuant to this section shall be deposited as restricted receipts.

     (2) There is created within the general fund a restricted receipt account to be known as the

"banking division reimbursement account." All funds in the account shall be utilized by the

department of business regulation to effectuate the provisions of this subsection (b). All funds

received for the securities banking division pursuant to this subsection (b) shall be deposited in the

securities banking division reimbursement account. The general treasurer is authorized and

directed to draw his or her orders on the account upon receipt of properly authenticated vouchers

from the department of business regulation.

     (3) There is created within the general fund a restricted receipt account to be known as the

"office of the health insurance commissioner reimbursement account." All funds in the account

shall be utilized by the department of business regulation to effectuate the provisions of this

subsection (b) that relate to reimbursements. All funds received for the health insurance

commissioner pursuant to this subsection (b) shall be deposited in the office of the health insurance

commissioner reimbursement account. The general treasurer is authorized and directed to draw his

or her orders on the account upon receipt of properly authenticated vouchers from the department

LC002741 - Page 24 of 33

of business regulation.

     (4) There is created within the general fund a restricted receipt account to be known as the

"securities division reimbursement account." All funds in the account shall be utilized by the

department of business regulation to effectuate the provisions of this subsection (b) that relate to

reimbursements. All funds received for the securities division pursuant to this subsection (b) shall

be deposited in the securities division reimbursement account. The general treasurer is authorized

and directed to draw his or her orders on the account upon receipt of properly authenticated

vouchers from the department of business regulation.

     (5) There is created within the general fund a restricted receipt account to be known as the

"commercial licensing and racing and athletics division reimbursement account." All funds in the

account shall be utilized by the department of business regulation to effectuate the provisions of

this subsection (b) that relate to reimbursements. All funds received for the commercial licensing

and racing and athletics division pursuant to this subsection (b) shall be deposited in the commercial

licensing and racing and athletics division reimbursement account. The general treasurer is

authorized and directed to draw his or her orders on the account upon receipt of properly

authenticated vouchers from the department of business regulation.

     (6) There is created within the general fund a restricted receipt account to be known as the

"insurance division reimbursement account." All funds in the account shall be utilized by the

department of business regulation to effectuate the provisions of this subsection (b) that relate to

reimbursements. All funds received for the insurance division pursuant to this subsection (b) shall

be deposited in the insurance division reimbursement account. The general treasurer is authorized

and directed to draw his or her orders on the account upon receipt of properly authenticated

vouchers from the department of business regulation.

     SECTION 13. Section 42-34-4 of the General Laws in Chapter 42-34 entitled "Industrial-

Recreational Building Authority" is hereby amended to read as follows:

     42-34-4. Organization of authority.

     (a) The Rhode Island industrial-recreational building authority, hereinafter in this chapter

called the "authority," hereby created and established a body corporate and politic, is constituted a

public instrumentality of the state, and the exercise by the authority of the powers conferred by the

provisions of this chapter shall be deemed and held to be the performance of essential governmental

functions. The authority shall consist of five (5) members, appointed by the governor for a period

of five (5) years, as herein provided.

     (b) During the month of January, 1959, the governor shall appoint one member to serve

until the first day of February, 1960, and until his or her successor is appointed and qualified, one

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member to serve until the first day of February, 1961, and until his or her successor is appointed

and qualified, one member to serve until the first day of February, 1962, and until his or her

successor is appointed and qualified, one member to serve until the first day of February, 1963, and

until his or her successor is appointed and qualified, and one member to serve until the first day of

February, 1964, and until his or her successor is appointed and qualified.

     (c) During the month of January, 1960, and during the month of January annually

thereafter, the governor shall appoint a member to succeed the member whose term will then next

expire, to serve for a term of five (5) years commencing on the first day of February then next

following and until his or her successor is appointed and qualified. A member shall be eligible to

succeed himself or herself.

     (d) A vacancy in the office of a member, other than by expiration, shall be filled in like

manner as an original appointment, but only for the remainder of the term of the retiring member.

Members may be removed by the governor for cause.

     (e) The authority may elect such officers from among its members as may be required to

conduct the authority's business. The chief executive officer of the commerce corporation shall

serve as executive director and chief executive officer, ex officio, of the authority. Three (3)

members of the authority shall constitute a quorum and the affirmative vote of a majority of the

members, present and voting, shall be necessary for any action taken by the authority; except that,

in no case shall any action taken by the authority be taken by an affirmative vote of less than three

(3) members. No vacancy in the membership of the authority or disqualification of a member under

§ 42-34-16 shall impair the right of the quorum to exercise all rights and perform all the duties of

the authority. All of the members of the authority shall be reimbursed for their actual expenses

necessarily incurred in the performance of their duties.

     (f) Appointments made under this section after the effective date of this act [April 20, 2006]

shall be subject to the advice and consent of the senate.

     (g) Newly appointed and qualified public members and designees of ex-officio members

shall, within six (6) months of their qualification or designation, attend a training course that shall

be developed with authority approval and conducted by the chairperson of the authority and shall

include instruction in the following areas: the provisions of chapters 34 and 46 of this title, chapter

14 of title 36, and chapter 2 of title 38; and the authority's rules and regulations. The director of the

department of administration shall, within ninety (90) days of the effective date of this act [April

20, 2006], prepare and disseminate training materials relating to the provisions of chapters 42-46,

36-14 and 38-2.29 46 of this title, 14 of title 36 and 2 of title 38.

     (h) Members of the authority shall be removable by the governor pursuant to § 36-1-7 and

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for cause only, and removal solely for partisan or personal reasons unrelated to capacity or fitness

for the office shall be unlawful.

     (i) The authority shall approve and submit a biannual report, each October 1 and each April

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

secretary of state, of its activities during the previous six (6) months. The report shall provide: an

operating statement summarizing meetings or hearings held, meeting minutes if requested, subjects

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

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

of the authority's loan guarantee program, including a summary of each approved project, the

guarantee amount for each approved project, and estimated jobs created or retained for each

approved project; a consolidated financial statement of all funds received and expended including

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

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

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

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

summary of any training courses held pursuant to subsection (i) of this section; a briefing on

anticipated activities in the upcoming fiscal year; and findings and recommendations for

improvements. The report shall be posted electronically on the general assembly and the secretary

of states websites as prescribed in § 42-20-8.2. The director of the department of administration

shall be responsible for the enforcement of this provision.

     SECTION 14. Section 44-5-20.02 of the General Laws in Chapter 44-5 entitled "Levy and

Assessment of Local Taxes" is hereby amended to read as follows:

     44-5-20.02. Central Falls -- Property tax classification -- List of ratable property.

     (a) Notwithstanding any provision within § 44-5-11.8 to the contrary, on or before June 1,

except in 1990, in which case the time is thirty (30) days after June 1, 1990, the assessor in the city

of Central Falls, after certification for classification, shall submit to the director of revenue a list

containing the true, full, and fair cash value of the ratable estate and motor vehicles and shall

classify and provide a tax rate for the property according to the following use:

     (1) "Class 1" includes residential property which is owner-occupied dwellings of no more

than five (5) units and which is property used or held for human habitation, including rooming

houses and mobile homes with facilities designed and used for living, sleeping, cooking, and eating

on a non-transient basis. Eligibility for the owner-occupied tax classification shall be determined

by compliance with § 44-3-34 and relevant city ordinances. This property includes accessory land,

buildings, or improvements incidental to the habitation and used exclusively by the residents of the

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property or their guests. This property does not include a hotel, motel, commercial, or industrial

property.

     (2) "Class 2" includes residential property which is owner-occupied dwellings of more than

five (5) units and non-owner-occupied dwellings, including properties for mixed use as residential

and commercial properties, and which is property used or held for human habitation, including

rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking,

and eating on a non-transient basis. This property includes accessory land, buildings, or

improvements incidental to the habitation and used exclusively by the residents of the property or

their guests. This property includes open space including "farm farmland," "forest forestland,"

and "open space land" as defined in accordance with § 44-27-2. This property does not include a

hotel, motel, commercial, or industrial property.

     (3) "Class 3" includes personal property, previously subject to tax, and includes all goods,

chattels, and effects, wherever they may be, except those that are exempt from taxation by the laws

of the United States or of this state.

     (4) "Class 4" includes every vehicle and trailer registered under chapter 3 of title 31.

     (5) "Class 5" includes property used commercially or for industrial manufacturing.

     (b) The city of Central Falls may, by ordinance adopted by the city council, provide for tax

classification of property and tax rates in the city of Central Falls based on the five (5) classes

outlined in subsection (a) of this section.

     (c) The effective tax rate for Class 2 shall not exceed by two (2) times, the effective tax

rate for Class 1; the effective tax rate for Class 5 shall not exceed by three (3) times, the effective

tax rate for Class 1; and the effective tax rate for Class 3 shall not exceed by four (4) times, the

effective tax rate for Class 1.

     SECTION 15. Section 44-33.6-8 of the General Laws in Chapter 44-33.6 entitled "Historic

Preservation Tax Credits 2013" is hereby amended to read as follows:

     44-33.6-8. Historic tax credit apprenticeship requirements.

     (a) Notwithstanding any laws to the contrary, any credit allowed under this chapter for hard

construction costs valued at ten million dollars ($10,000,000) or more shall include a requirement

that any contractor and subcontractor working on the project shall have an apprenticeship program

as defined herein for all apprenticeable crafts that will be employed on the project at the time of

bid. The provisions of the this section shall only apply to contractors and subcontractors with five

(5) or more employees. For purposes of this section, an apprenticeship program is one that is

registered with and approved by the United States department of labor in conformance with 29

C.F.R. 29 and 29 C.F.R. 30; and.

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     (b) The department of labor and training must provide information and technical assistance

to affected governmental, quasi-governmental agencies, and any contractors awarded projects

relative to their obligations under this statute.

     (c) The department of labor and training may also impose a penalty of up to five hundred

dollars ($500) for each calendar day of noncompliance with this section, as determined by the

director of labor and training. Mere errors and/or omissions shall not be grounds for imposing a

penalty under this subsection.

     (d) Any penalties assessed under this statute shall be paid to the general fund.

     (e) To the extent that any of the provisions contained in § 37-13-3.2 this section conflict

with the requirements for federal aid contracts, federal law and regulations shall control.

     SECTION 16. Section 45-53-3 of the General Laws in Chapter 45-53 entitled "Low and

Moderate Income Housing" is hereby amended to read as follows:

     45-53-3. Definitions.

     The following words, wherever used in this chapter, unless a different meaning clearly

appears from the context, have the following meanings:

     (1) "Affordable housing plan" means a component of a housing element, as defined in

subdivision 45-22.2-4(1), to meet housing needs in a city or town that is prepared in accordance

with guidelines adopted by the state planning council, and/or to meet the provisions of subsection

45-53-4(b)(1) and (c).

     (2) "Approved affordable housing plan" means an affordable housing plan that has been

approved by the director of administration as meeting the guidelines for the local comprehensive

plan as promulgated by the state planning council; provided, however, that state review and

approval, for plans submitted by December 31, 2004, shall not be contingent on the city or town

having completed, adopted, or amended its comprehensive plan as provided for in sections 45-

22.2-8, 45-22.2-9, or 45-22.2-12.

     (3) "Comprehensive plan" means a comprehensive plan adopted and approved by a city or

town pursuant to chapters 22.2 and 22.3 of this title.

     (4) "Consistent with local needs" means reasonable in view of the state need for low and

moderate income housing, considered with the number of low income persons in the city or town

affected and the need to protect the health and safety of the occupants of the proposed housing or

of the residence of the city or town, to promote better site and building design in relation to the

surroundings, or to preserve open spaces, and if the local zoning or land use ordinances,

requirements, and regulations are applied as equally as possible to both subsidized and

unsubsidized housing. Local zoning and land use ordinances, requirements, or regulations are

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consistent with local needs when imposed by a city or town council after a comprehensive hearing

in a city or town where:

     (i) Low or moderate income housing exists which is: (A) in the case of an urban city or

town which has at least 5,000 occupied year-round rental units and the units, as reported in the

latest decennial census of the city or town, comprise twenty-five percent (25%) or more of the year-

round housing units, and is in excess of fifteen percent (15%) of the total occupied year-round

rental units; or (B) in the case of all other cities or towns, is in excess of ten percent (10%) of the

year-round housing units reported in the census.

     (ii) The city or town has promulgated zoning or land use ordinances, requirements, and

regulations to implement a comprehensive plan which has been adopted and approved pursuant to

chapters 22.2 and 22.3 of this title, and the housing element of the comprehensive plan provides

for low and moderate income housing in excess of either ten percent (10%) of the year-round

housing units or fifteen percent (15%) of the occupied year-round rental housing units as provided

in subdivision (2)(i)(4)(i).

     (5) "Infeasible" means any condition brought about by any single factor or combination of

factors, as a result of limitations imposed on the development by conditions attached to the approval

of the comprehensive permit, to the extent that it makes it impossible for a public agency, nonprofit

organization, or limited equity housing cooperative to proceed in building or operating low or

moderate income housing without financial loss, within the limitations set by the subsidizing

agency of government, on the size or character of the development, on the amount or nature of the

subsidy, or on the tenants, rentals, and income permissible, and without substantially changing the

rent levels and unit sizes proposed by the public agency, nonprofit organization, or limited equity

housing cooperative.

     (6) "Letter of eligibility" means a letter issued by the Rhode Island housing and mortgage

finance corporation in accordance with subsection 42-55-5.3(a).

     (7) "Local board" means any town or city official, zoning board of review, planning board

or commission, board of appeal or zoning enforcement officer, local conservation commission,

historic district commission, or other municipal board having supervision of the construction of

buildings or the power of enforcing land use regulations, such as subdivision, or zoning laws.

     (8) "Local review board" means the planning board as defined by subdivision 45-22.2-

4(26) 45-22.2-4(20), or if designated by ordinance as the board to act on comprehensive permits

for the town, the zoning board of review established pursuant to section 45-24-56.

     (9) "Low or moderate income housing" means any housing whether built or operated by

any public agency or any nonprofit organization or by any limited equity housing cooperative or

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any private developer, that is subsidized by a federal, state, or municipal government subsidy under

any program to assist the construction or rehabilitation of housing affordable to low or moderate

income households, as defined in the applicable federal or state statute, or local ordinance and that

will remain affordable through a land lease and/or deed restriction for ninety-nine (99) years or

such other period that is either agreed to by the applicant and town or prescribed by the federal,

state, or municipal government subsidy program but that is not less than thirty (30) years from

initial occupancy.

     (10) "Meeting housing needs" means adoption of the implementation program of an

approved affordable housing plan and the absence of unreasonable denial of applications that are

made pursuant to an approved affordable housing plan in order to accomplish the purposes and

expectations of the approved affordable housing plan.

     (11) "Municipal government subsidy" means assistance that is made available through a

city or town program sufficient to make housing affordable, as affordable housing is defined in §

42-128-8.1(d)(1); such assistance may include, but is not limited to, direct financial support,

abatement of taxes, waiver of fees and charges, and approval of density bonuses and/or internal

subsidies, and any combination of forms of assistance.

     SECTION 17. Section 46-12.2-12.1 of the General Laws in Chapter 46-12.2 entitled

"Rhode Island Infrastructure Bank" is hereby amended to read as follows:

     46-12.2-12.1. Power of local governmental units to issue limited obligations payable

from energy efficiency savings.

     (a) If required by the applicable loan agreement, and notwithstanding any general or special

law or municipal charter to the contrary, local governmental obligations shall be issued as limited

obligations payable solely from an appropriation of general revenues in an amount not to exceed

the projected energy savings of the project. Notwithstanding § 45-12.2-2 45-12-2 or any general or

special law or municipal charter to the contrary, all local governmental units shall have the power

to issue such local governmental obligations pursuant to this section without limit as to amount,

and the amount of principal and premium, if any, and interest on the obligations shall not be

included in the computation of any limit on the indebtedness of the local governmental unit or on

the total taxes which may be levied or assessed by the local governmental unit in any year or on

any assessment, levy, or other charge made by the local governmental unit on any other political

subdivision or instrumentality of the state. This section shall constitute the bond act for the issuance

of such local governmental obligations by local governmental units. Any local governmental

obligations issued in accordance with this section shall recite on its face that it is a limited obligation

payable solely from an appropriation of general revenues in an amount not to exceed the projected

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energy savings pledged to its payment.

     (b) The issuance of local governmental obligations in accordance with this section, the

maturity or maturities and other terms thereof, the security therefor, the rights of the holders thereof,

and the rights, duties, and obligation of the local governmental unit in respect of the same shall be

governed by the provisions of this chapter relating to the issue of local governmental obligations to

the extent applicable and not inconsistent with this section.

     (c) A local government unit may appropriate general revenues on an annual basis to pay

any local governmental obligation provided that an event of non-appropriation shall not be an event

of default under any local governmental obligation.

     SECTION 18. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

***

     This act would make technical amendments and corrections to the general laws.

     This act would take effect upon passage.

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