SECTION 1. (1) 2002 H 7732 Substitute A, As Amended, Article 1, Section 1, Page 13, lines 5 to 15 ending after the word "Advisor", are hereby repealed.

(2) 2002 H 7732 Substitute A, As Amended, Article 1, Section 11, Page 16, lines 4 to 9 and beginning with the word "and" on line 4 and ending with the number "2003" on line 9, and on line 10 beginning with the word "or" and ending with the word "position" are hereby repealed.

(3) 2002 H 7732 Substitute A, As Amended, Article 1, Section 11, Page 18, line 2 beginning with the word "Total" and ending with the number "15,721.3" is hereby repealed.

SECTION 2. Notwithstanding the provisions of 2002 H 7732 Substitute A, As Amended, entitled "AN ACT MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2003", the number of full-time equivalent (FTE) positions within the executive branch which may not be exceeded in Article 1 on page 15, line 18 shall be 14, 277.9; and the FTE Position Authorization for Administration set forth in Article 1 on page 16, line 15, shall be 1313.4.

SECTION 3. Notwithstanding the provisions of 2002 H 7732 Substitute A, As Amended, entitled "AN ACT MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2003" the appropriation for Labor and Training/Federal Funds in Article 1 on page 3, on line 24, shall be in the amount of $38,047,421; the appropriation for Labor and Training/Other Funds set forth in Article 1 on page 3, on line 26 shall be in the amount of $367,815,094 and the appropriation for State Police/Traffic Enforcement-Municipal Training set forth in Article 1 on page 10, on line 22 shall be in the amount of $216,800.

PREAMBLE

SECTION 4. WHEREAS, The general assembly is concerned about the state of Rhode Island facing decreasing revenues and increased expenditures in the coming fiscal years; and

WHEREAS, The general assembly has a duty to protect the financial stability and well- being of the state of Rhode Island; and

WHEREAS, It is the duty of the general assembly to appropriate funds for expenditures in anticipation of revenue; and

WHEREAS, The general assembly has appropriated funds for the state of Rhode Island budget in H 7732 Substitute A, As Amended; and

THEREFORE, in order to monitor and ensure the fiscal solvency of the state of Rhode Island, there is hereby created a Fiscal Review Board (the "Board").

SECTION 5. (1) Composition of the board - The board shall consist of the governor or designee, the speaker of the house of representatives or designee, the majority leader of the senate or designee (effective until January 7, 2003), and the president of the senate or designee (effective January 7, 2003).

(2) Compensation - Members of the board shall receive no compensation for the performance of their duties.

(3) Chairperson - The governor or designee shall be the chairperson of the board.

(4) Duties - The board shall meet at least monthly to review the prior month's revenues and expenditures for the state of Rhode Island.

All branches of government, departments, agencies, boards, and the Revenue Estimating Conferences pursuant to Title 35, Chapter 16 of the General Laws of Rhode Island, shall cooperate fully and give any and all information and documents requested to the board including, but not limited to, revenues, expenditures in an amount as may be determined by the board, any position vacancies, and the filling of any position vacancies.

The board shall issue recommendations to the senate, the house of representatives, the judiciary, the department of administration, and any other departments, agencies, and boards.

The recommendations may include, but are not limited to, a request that the general assembly convene to immediately address issues regarding the revenues and expenditures for the state of Rhode Island.

(5) Powers - The board shall have the power to hold hearings and to subpoena witnesses and documents.

(6) The board shall be governed by the Public Records Act in Title 38 of the General Laws of Rhode Island and the Open Meetings Act in Title 42, Chapter 46 of the General Laws of Rhode Island.

SECTION 6. Chapter 44-20 of the General Laws entitled "Cigarette Tax" is hereby amended by adding thereto the following section:

44-20-28.1. Noncompliance with tobacco manufacturer's escrow fund -- Penalties. - (a) A distributor may not affix, or cause to be affixed, stamps to individual packages of cigarettes to be sold or distributed in this state by a distributor licensed in this state if the Attorney General has notified the distributor that the tobacco product manufacturer of those cigarettes has:

(1) Failed to become a participating manufacturer as defined in section 23-71-3(1) of the Rhode Island General Laws; and

(2) Failed to create a qualified escrow fund and make the required deposits in said escrow fund pursuant to section 23-71-3(2)(i) of the Rhode Island General Laws for any cigarettes the distributor sold or distributed for that tobacco product manufacturer in this state.

As used in this section, "tobacco product manufacturer" has the same meaning as that term is defined in section 23-71-2 of the Rhode Island General Laws.

(b) A distributor who violates this section is subject to suspension or revocation of its license pursuant to section 44-20-8.

SECTION 7. Notwithstanding the provisions of 2002 H 7732 Substitute A, As Amended, entitled "AN ACT MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2003", in that Article added to the said Act with legislative code number LC02464/31, said Article is hereby amended to read as follows:

(1) On page 4, line 4, by repealing the word "Whenever" and inserting in place thereof the language: "Commencing with taxes assessed on December 31, 2001, whenever";

(2) On page 4, line 8, by inserting the following language after the word "improvements": "regardless of whether the improvements become state property, unless the improvements or the tenant or subtenant are otherwise exempt from taxation";

(3) On page 4, lines 19 and 20, by repealing the language: "dates of property assessments occurring on or after December 31, 2000.", and inserting in place thereof the language: "taxes assessed commencing on December 31, 2001.".

SECTION 8. This section and sections 1, 2, 3, 6, and 7 of this act shall take effect upon passage. Sections 4 and 5 of this act shall take effect on July 1, 2002 and shall terminate, unless otherwise provided by law, on June 30, 2003.