Chapter 376

Chapter 376

 

<BILL_NO>2003 -- H 6174</BILL_NO> <SUB> SUBSTITUTE A AS AMENDED

Enacted 07/15/03

</SUB>

A N   A C T

RELATING TO MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2004

 

Introduced By: Representatives Watson, Callahan, Mumford, Moffitt, and Trillo

Date Introduced: March 11, 2003

 

It is enacted by the General Assembly as follows:

ARTICLE 1     RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2004

ARTICLE 2      RELATING TO COMPENSATION OF BOARD MEMBERS

ARTICLE 3      RELATING TO BORROWING IN ANTICIPATION OF TAXES

ARTICLE 4      RELATING TO DEPOSITORS ECONOMIC PROTECTION

                        CORPORATION – SINKING FUND

ARTICLE 5      RELATING TO CAPITAL DEVELOPMENT PROGRAM

ARTICLE 6      RELATING TO PUBLIC UTILITIES METERING DEVICES

ARTICLE 7      RELATING TO BUSINESS CORPORATION TAX

ARTICLE 8      RELATING TO SUPERIOR COURT FEES

ARTICLE 9      RELATING TO EDUCATION AID

ARTICLE 10    RELATING TO VIDEO LOTTERY TERMINALS

ARTICLE 11    RELATING TO LICENSING OF HEALTH CARE FACILITIES

ARTICLE 12    RELATING TO HUMAN SERVICES-FAMILY INDEPENDENCE ACT

ARTICLE 13    RELATING TO MOTOR VEHICLE AND TRAILER EXCISE TAX

ARTICLE 14    RELATING TO ENVIRONMENTAL MANAGEMENT

ARTICLE 15    RELATING TO PUBLIC UTILITIES & CARRIERS – DUTIES OF UTILITIES AND CARRIERS

 

ARTICLE 16    RELATING TO STATE AID

ARTICLE 17    RELATING TO LICENSING OF CHILD CARE PROVIDERS

ARTICLE 18    RELATING TO GENERAL PUBLIC ASSISTANCE

ARTICLE 19    RELATING TO HOSPITAL UNCOMPENSATED CARE

ARTICLE 20    RELATING TO FISH AND WILDLIFE -- LICENSING

ARTICLE 21    RELATING TO SPECIAL PROGRAM FOR CARE OF SEVERELY DISABLED ELDERLY RESIDENTS WHO NEED NURSING FACILITY SERVICES

 

ARTICLE 22    RELATING TO MEDICAL ASSISTANCE – RITE CARE

ARTICLE 23    RELATING TO REAL ESTATE LICENSES AND FEES

ARTICLE 24    RELATING TO SECURITIES REGISTRATION FEES

ARTICLE 25    RELATING TO RETIREMENT SYSTEM ADMINISTRATION

ARTICLE 26    RELATING TO MEDICAL ASSISTANCE – RATES OF REIMBURSEMENT

 FOR HOSPITAL EMERGENCY ROOM PHYSICIAN SERVICES

 

ARTICLE 27    RELATING TO A JOINT LEGISLATIVE COMMISSION TO STUDY THE IMPLEMENTATION OF A FUNDING INDEX FOR PRIVATE COMMUNITY-BASED PROVIDERS OPERATING PURSUANT TO CONTRACTS WITH THE STATE OF RHODE ISLAND

 

ARTICLE 28    RELATING TO MOTOR FUEL TAX

ARTICLE 29    RELATING TO SHARE BASED FEES

ARTICLE 30    RELATING TO THE SELECT COMMISSION ON RACE AND POLICE-COMMUNITY RELATIONS ACT    

 

ARTICLE 31    RELATING TO STATE ARCHIVES

ARTICLE 32    RELATING TO TEMPORARY DISABILITY INSURANCE REFUNDS

ARTICLE 33    RELATING TO UNCLAIMED INTANGIBLE AND TANGIBLE PROPERTY

ARTICLE 34    RELATING TO HEALTH – FACILITY LICENSING

ARTICLE 35    RELATING TO PUBLIC UTILITIES AND CARRIERS – REGULATORY POWERS OF ADMINISTRATION

 

ARTICLE 36    RELATING TO JOINT RESOLUTION ON HIGHER EDUCATION FACILITIES

 

ARTICLE 37    RELATING TO A TAX STUDY COMMISSION AND AN EDUCATION FUNDING STUDY COMMISSION

 

ARTICLE 38    RELATING TO STATE AID – A STATEWIDE STUDY OF TAX TREATIES AND EXEMPTIONS

 

ARTICLE 39    RELATING TO STATE AFFAIRS AND GOVERNMENT

ARTICLE 40    RELATING TO PUBLIC UTILITIES AND CARRIERS

ARTICLE 41    RELATING TO MEDICAL ASSISTANCE

ARTICLE 42    RELATING TO REVISED APPROPRIATIONS

ARTICLE 43    RELATING TO STATE BUDGET

ARTICLE 44    RELATING TO THE RHODE ISLAND VETERANS’ HOME

ARTICLE 45    RELATING TO CREDIT CARDS

ARTICLE 46    RELATING TO EFFECTIVE DATE

 

ARTICLE 1

MAKING APPROPRIATIONS FOR THE SUPPORT OF FY 2004

 

ARTICLE 1

SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in this act, the following general revenue amounts are hereby appropriated out of any money in the treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 2004.  The amounts identified for federal funds and restricted receipts shall be made available pursuant to section 35-4-22 and Chapter 41 of Title 42 of the Rhode Island General Laws.  For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

                                                                                                                                         

Administration                                                                              

Central Management                                                                     

         General Revenues                                                                             2,131,791

         Federal Funds                                                                                     298,986

                  Total - Central Management                                                     2,430,777

Accounts and Control                                                                    

        General Revenues                                                                    

                 General Revenues                                                                     9,272,646

                  RI-SAIL                                                                                    430,751

                  Total - Accounts and Control                                                   9,703,397

Budgeting General Revenues                                                                    2,304,799

Municipal Affairs                                                                           

         General Revenues                                                                             1,253,325

         Federal Funds                                                                                  7,572,738

                  Total - Municipal Affairs                                                          8,826,063

Purchasing General Revenues                                                                  1,916,327

Auditing General Revenues                                                                       1,677,216

Human Resources General Revenues                                                        6,804,969

Personnel Appeal Board General Revenues                                                   116,182

Taxation                                                                                        

         General Revenues                                                                           17,233,778

         Federal Funds                                                                                     801,461

         Restricted Receipts                                                                           1,360,843

         Other Funds                                                                           

                  Motor Fuel Tax Evasion Program                                                  56,488

                  Temporary Disability Insurance                                                   572,322

                  Total - Taxation                                                                     20,024,892

Registry of Motor Vehicles                                                            

         General Revenues                                                                           15,248,702

         Digital License System                                                                        292,355

         Federal Funds                                                                                     434,530

         Restricted Receipts                                                                                14,358

                  Total - Registry of Motor Vehicles                                         15,989,945

Child Support Enforcement                                                           

         General Revenues                                                                             3,294,395

         Federal Funds                                                                                  6,533,864

                  Total - Child Support Enforcement                                           9,828,259

Central Services                                                                            

         General Revenues                                                                   

                  General Revenues                                                                  14,291,837

                  Energy Office Grants                                                                   356,407

         Federal Funds                                                                                19,886,658

         Restricted Receipts                                                                           1,067,887

         Other Funds-Lighting Conservation                                                      661,278

                  Total - Central Services                                                        36,264,067

Office of Library and Information Services                                  

         General Revenues                                                                             3,430,001

         Federal Funds                                                                                  1,361,156

         Restricted Receipts                                                                                  5,000

         Other Funds                                                                           

                  Federal Highway - PL Systems Planning                                      981,700

                  Federal Highway - T2 Systems Planning                                      129,550

                  Air Quality Modeling                                                                     20,283

                  Total - Office of Library and Information Services                    5,927,690

General                                                                                          

         General Revenues                                                                   

                  Information Processing Overhead                                                480,000

                  Property Tax Relief Credit                                                       6,000,000

                  Rhode Island Sports Foundation                                                 367,500

                  Shepard Building Operating/ Parking                                         1,970,331

                  Miscellaneous Grants                                                                 2,147,154

                  Torts - Court Awards                                                                 400,000

                  Asset Inventory Project                                                            150,000

                  Contingency Fund                                                                    1,500,000

                  Economic Development Corporation                                        6,485,687

                  Office of City and Town Development - EDC                             500,000

                  Centers for Excellence                                                             4,000,000

                  Economic Policy Council                                                             300,000

                  Housing Resource Commission                                                3,257,789

                  Neighborhood Opportunities Program                                      5,000,000

                  Motor Vehicle Excise Tax Payments                                    104,337,885

                  Property Revaluation                                                                2,228,320

                  General Revenue Sharing Program                                         51,426,063

                  Payment in Lieu of Tax Exempt Properties                              21,716,117

                  Distressed Communities Relief Program                                    7,533,333

                  Resource Sharing and State Library Aid                                   7,586,860

                  Construction Aid                                                                      2,537,200

         Restricted Receipts                                                                           1,196,000

         Federal Funds                                                                                     298,050

         Other Funds                                                                           

                  RICAP - State House Terrace/South Stairs                                 50,000

                  RICAP - Chapin Health Laboratory                                            250,000

                  RICAP - Cranston Street Armory                                               500,000

                  RICAP - Cannon Building                                                           222,000

                  RICAP - Old State House                                                          325,000

                  RICAP - State Office Building                                                    250,000

                  RICAP - Veterans' Auditorium Office Building                            200,000

                  RICAP - State Information Operations Center                            200,000

                  RICAP - Court Buildings - HVAC                                              250,000

                  RICAP - Washington County Government Center                       268,000

                  RICAP - William Powers Building                                                 45,000

                  RICAP - State House Renovations - Phase II                             400,000

                  RICAP - State House Renovations - Phase III                            230,000

                  RICAP - Powers Building Technology Infrastructure                   300,000

                  RICAP - Environmental Compliance                                           750,000

                  RICAP - Fox Point Hurricane Barrier                                           50,000

                  RICAP - Bio-Tech Training Laboratory                                      300,000

                  Total - General                                                                    236,008,289

Debt Service Payments                                                                  

         General Revenues                                                                           84,998,150

         Federal Funds                                                                                  1,276,256

         Restricted Receipts                                                                 

                  RIRBA - DLT - Job Development Fund                                       45,709

                  RIRBA - DLT - Rapid Reemployment                                          48,105

                  COPS - Center General Furniture - WC                                       38,218

                  COPS - DLT Building - WC                                                      223,888

                  COPS - DLT Building - Job Development Fund                            66,560

                  COPS - Pastore Center Telecommunications - JDF                        3,350

                  COPS - Pastore Center General Furniture                                     11,362

                  COPS - Pastore Center Telecommunications - WC                      11,270

                  Investment Receipts - TANS                                                   1,420,594

                  Convention Center Excess DS Rental Payment                         3,623,549

         Other Funds                                                                           

                  MHRH Community Services Program                                      10,067,200

                  MHRH Community Mental Health Program                             2,273,266

                  DEM - Narragansett Bay Commission                                     3,333,356

                  DEM - Wastewater Treatment                                                 1,930,951

                  RIPTA Debt Service                                                                   431,190

                  Transportation Debt Service                                                   31,784,914

                  RIRBA - DLT - Temporary Disability Insurance                            45,586

                  COPS - DLT Building - TDI                                                       346,100

                  COPS - Center General - Furniture - TDI                                     59,079

                  COPS - Pastore Center Telecommunications - TDI                       17,421

                  COPS - DLT Building - Reed Act                                                31,296

                  COPS - Center General - Furniture - Reed Act                               5,342

                  COPS - Pastore Center Telecommunications - Reed Act                                          1,575

                  Debt - URI Education and General                                           1,088,999

                  Debt - URI Housing Loan Funds                                              1,751,951

                  Debt - URI Dining Services                                                         266,889

                  Debt - URI Health Services                                                        126,218

                  Debt - W. Alton Jones Services                                                  112,766

                  Debt - URI Memorial Union                                                         98,277

                  Debt - URI Sponsored Research (Indirect Cost)                         101,334

                  Debt - RIC Education and General                                              296,614

                  Debt - RIC Housing                                                                    568,191

                  Debt - RIC Student Center and Dining                                        177,951

                  Debt - RIC Student Union                                                          217,171

                  Debt - CCRI Bookstore                                                             177,092

                  Total - Debt Service Payments                                             147,077,740

Division of Sheriffs General Revenues                                                    14,016,893

                  Grand Total - Department of Administration                         518,917,505

Business Regulation                                                                     

Central Management General Revenues                                                  1,645,971

Banking Regulation General Revenues                                                     1,627,501

Securities Regulation General Revenues                                                      799,456

Commercial Licensing and Regulation                                          

         General Revenues                                                                             1,167,196

         Restricted Receipts                                                                              100,000

                  Total – Commercial Licensing                                                  1,267,196

Racing and Athletics General Revenues                                                       718,056

Insurance Regulation                                                                     

         General Revenues                                                                              3,598,012

         Restricted Receipts                                                                              501,063

                  Total - Insurance Regulation                                                     4,099,075

Board of Accountancy General Revenues                                                    124,713

                  Grand Total - Business Regulation                                           10,281,968

Department of Labor and Training                                              

Central Management                                                                     

         General Revenues                                                                                352,820

         Restricted Receipts                                                                              753,585

                  Total – Central Management                                                    1,106,405

Workforce Development Services                                                 

         General Revenues                                                                             1,400,000

         Federal Funds                                                                                14,883,220

         Restricted Receipts                                                                         11,617,450

         Other Funds                                                                           

                  Reed Act - Rapid Job Entry                                                     1,725,758

                  Reed Act - Woonsocket Network Office Renovations                250,000

                  Reed Act - Workforce Development                                        2,016,254

                  Of the $360.6 million appropriated from other funds, $4.0 million is hereby appropriated from Reed Act Funds.  Of the $4.0 million amount, $1.7 million may be used solely for the Rapid Job Entry Program to engage welfare recipients in employment preparation and placement through employment Assessment Workshop and Job Club/Job Search Workshop Activities, $250,000 may be used solely for netWORKri Office renovations, and $2.0 million may be used solely for the administration of this state's employment compensation law and public employment offices.       

                  Total - Workforce Development Services                               31,892,682

Workforce Regulation and Safety General Revenues                               2,872,587

Income Support                                                                             

         General Revenues                                                                             2,899,417

         Federal Funds                                                                                16,931,269

         Restricted Receipts                                                                           1,947,928

         Other Funds                                                                           

                  Temporary Disability Insurance Fund                                    177,671,368

                  Employment Security Fund                                                   178,800,000

                  Reed Act – Administrative Costs                                                 54, 179

         Provided that the 54,179 in Reed Act funds may be used solely for administration of the state’s unemployment insurance program.

                  Total - Income Support                                                        378,304,161

Injured Workers Services Restricted Receipts                                        10,784,725

Labor Relations Board General Revenues                                                   390,989

                  Grand Total - Labor and Training                                         425,351,549

Legislature                                                                                    

         General Revenues                                                                           27,326,547

         Restricted Receipts                                                                              884,303

         Other Funds                                                                                     1,500,000

                  Grand Total - Legislature                                                       29,710,850

Lieutenant Governor General Revenues                                                     860,138

State                                                                                                                        

Administration General Revenues                                                             1,180,127

Corporations General Revenues                                                               1,785,231

State Archives                                                                                

         General Revenues                                                                                97,823

         Restricted Receipts                                                                              553,511

                  Total - State Archives                                                                 651,334

Elections

          General Revenues                                                                               363,039

          Federal Funds                                                                             8,260,870

                 Total – Elections                                                                         8,623,909

State Library General Revenues                                                                  680,008

Office of Public Information General Revenues                                          519,461

                  Grand Total - State                                                                  13,440,070

General Treasurer                                                                        

Treasury                                                                                        

         General Revenues                                                                             2,550,213

         Federal Funds                                                                                       237,678

         Restricted Receipts                                                                                10,000

         Other Funds - Temporary Disability Insurance Fund                             246,428

                  Total - Treasury                                                                       3,044,319

State Retirement System                                                                

         Other Funds                                                                           

                  Admin Expenses - State Retirement System                              4,900,120

                  Retirement - Treasury Investment Operations                              631,877

                  Total - State Retirement System                                               5,531,997

Unclaimed Property Restricted Receipts                                                19,117,523

RI Refunding Bond Authority General Revenues                                           79,996

Crime Victim Compensation Program                                          

         General Revenues                                                                                215,080

         Federal Funds                                                                                  1,288,052

         Restricted Receipts                                                                           1,602,187

                  Total - Crime Victim Compensation Program                           3,105,319

                  Grand Total - General Treasurer                                            30,879,154

Boards for Design Professionals General Revenues                                  391,338

Board of Elections                                                                        

         General Revenues                                                                             1,365,467

         Federal Funds                                                                                     941,000

                  Grand Total - Board of Elections                                              2,306,467

Rhode Island Ethics Commission General Revenues                                 942,594

Office of Governor General Revenues                                                     4,277,878

Public Utilities Commission                                                          

         General Revenues                                                                                693,237

         Federal Funds                                                                                       70,277

         Restricted Receipts                                                                           5,123,672

                  Grand Total - Public Utilities Commission                                 5,887,186

Rhode Island Commission on Women General Revenues                         143,393

Children, Youth, and Families                                                      

Central Management                                                                     

         General Revenues                                                                             7,688,399

         Federal Funds                                                                                  4,421,705

                  Total - Central Management                                                   12,110,104

Children's Behavioral Health Services                                          

         General Revenues                                                                           19,349,256

         Federal Funds                                                                                24,713,707

                Total - Children's Behavioral Health Services                           44,062,963

Juvenile Correctional Services                                                      

         General Revenues                                                                           26,659,023

         Federal Funds                                                                                  3,054,386

         Restricted Receipts                                                                              700,000

                  Total - Juvenile Correctional Services                                     30,413,409

Child Welfare                                                                                 

         General Revenues                                                                          82,413,103

         Federal Funds                                                                                64,043,814

         Restricted Receipts                                                                           1,311,220

         Other Funds - NAFI Center                                                                25,000

                  Total - Child Welfare                                                           147,793,137

Higher Education Incentive Grant General Revenues                                 200,000

         Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget," all unexpended, encumbered and unencumbered general revenues balances of the appropriation for the higher education opportunity incentive grants in the Department of Children, Youth and Families at the end of fiscal year 2004 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.        

                  Grand Total - Children, Youth, and Families                         234,579,613

Elderly Affairs                                                                              

         General Revenues                                                                   

                  General Revenues                                                                  13,604,788

                  RIPAE                                                                                  14,089,607

                  Safety and Care of the Elderly                                                          600

         Federal Funds                                                                                  9,884,630

         Other Funds - Intermodal Surface Transportation Fund                     4,720,000

                  Grand Total - Elderly Affairs                                                  42,299,625

Health                                                                                           

Central Management                                                                     

         General Revenues                                                                             2,646,349

         Federal Funds                                                                                  4,365,589

         Restricted Receipts                                                                           2,045,538

         Other Funds - Trauma Registry                                                                1,091

                  Total - Central Management                                                    9,058,567

State Medical Examiner General Revenues                                              1,810,305

Family Health                                                                                

         General Revenues                                                                             8,636,010

         Federal Funds                                                                                36,651,070

         Restricted Receipts                                                                           5,728,390

                  Total - Family Health                                                             51,015,470

Health Services Regulation                                                            

         General Revenues                                                                             4,487,878

         Federal Funds                                                                                  3,547,076

         Restricted Receipts                                                                              447,268

                  Total - Health Services Regulation                                           8,482,222

Environmental Health                                                                   

         General Revenues                                                                             4,384,145

         Federal Funds                                                                                  3,189,667

         Restricted Receipts                                                                           1,475,101

                  Total - Environmental Health                                                    9,048,913

Health Laboratories                                                                      

         General Revenues                                                                             6,179,326

         Federal Funds                                                                                  1,620,239

                  Total - Health Laboratories                                                      7,799,565

Disease Prevention and Control                                                   

         General Revenues                                                                             5,948,337

         Federal Funds                                                                                14,847,566

         Restricted Receipts                                                                             934,482

         Other Funds - Child Safety Program                                                      72,335

                  Total - Disease Prevention and Control                                  21,802,720

                  Grand Total - Health                                                            109,017,762

Human Services                                                                            

Central Management                                                                     

         General Revenues                                                                            6,473,722

         Federal Funds                                                                                  4,371,706

         Restricted Receipts - Indirect Cost Recovery                                    2,287,939

                  Total - Central Management                                                   13,133,367

Individual and Family Support                                                      

         General Revenues                                                                           20,137,036

         Federal Funds                                                                                52,464,116

         Restricted Receipts - Vending Stand Proceeds                                       68,161

         Other Funds  

              RICAP - Forand Building Exterior Repairs                                      928,723

              RICAP – Benjamin Rush Phase I (Parking)                                     187,000

                  Total - Individual and Family Support                                     73,785,036

Veterans' Affairs                                                                            

         General Revenues                                                                           16,340,861

         Federal Funds                                                                                  5,523,149

         Restricted Receipts                                                                           1,948,507

                  Grand Total - Veterans' Affairs                                              23,812,517

Health Care Quality, Financing and Purchasing                          

         General Revenues                                                                           23,746,254

         Federal Funds                                                                                39,200,479

         Restricted Receipts                                                                           1,038,201

                  Total - Health Care Quality, Financing and Purchasing            63,984,934

Medical Benefits                                                                            

         General Revenues                                                                   

                  Hospitals                                                                               95,448,116

                  Nursing Facilities                                                                  119,535,895

                  Managed Care                                                                     127,668,494

                  Special Education                                                                  17,047,692

                  Other                                                                                     90,038,516

         Federal Funds                                                                        

                  Hospitals                                                                             123,813,833

                  Nursing Facilities                                                                  165,942,040

                  Managed Care                                                                     188,931,382

                  Special Education                                                                  24,352,308

                  Other                                                                                   129,008,518

         Restricted Receipts                                                                                15,000

                  Total - Medical Benefits                                                    1,081,801,794

Supplemental Security Income Program General Revenues                   26,824,008

Family Independence Program                                                     

         General Revenues                                                                   

                  Child Care                                                                             58,797,451

                  TANF/Family Independence Program                                    18,242,741

         Federal Funds                                                                               83,084,408

                  Total - Family Independence Program                                  160,124,600

State Funded Programs                                                                

         General Revenues                                                                   

                  General Public Assistance                                                        2,929,132

                  Citizenship Participation Program                                                  45,000

         Federal Funds                                                                                68,556,460

                  Total - State Funded Programs                                              71,530,592

                  Grand Total - Human Services                                          1,514,996,848

Mental Health, Retardation, and Hospitals                                

Central Management General Revenues                                                  2,260,725

Hospital and Community System Support                                     

         General Revenues                                                                           20,075,397

         Other Funds                                                                           

                  RICAP - Utilities Upgrade                                                          300,000

                  RICAP - Medical Center Rehabilitation                                       400,000

                  RICAP - Utility Systems - Water Tanks and Pipes                      250,000

                  RICAP - Central Power Plant Rehabilitation                                500,000

                  RICAP - Pastore Center Sewer Improvement                            500,000

                  Total - Hospital and Community System Support                    22,025,397

Services for the Developmentally Disabled                                   

         General Revenues                                                                         94,583,493

         Federal Funds                                                                              131,677,435

         Other Funds - RICAP - DD State Owned Group Homes                     200,000

                  Total - Services for the Developmentally Disabled                226,460,928

Integrated Mental Health Services                                                

         General Revenues                                                                    31,506,079 33,660,790

         Federal Funds                                                                                34,855,717

                  Total - Integrated Mental Health Services                        66,361,796 68,516,507

Hospital and Community Rehabilitation Services                         

         General Revenues                                                                          44,647,530

         Federal Funds                                                                                56,796,999

         Other Funds - RICAP - Zambarano Buildings and Utilities                   300,000

                  Total - Hospital and Community Rehabilitation Services        101,744,529

Substance Abuse                                                                            

         General Revenues                                                                           14,339,975

         Federal Funds                                                                                14,535,572

         Restricted Receipts                                                                                75,000

         Other Funds - RICAP - Asset Protection                                             100,000

                  Total - Substance Abuse                                                        29,050,547

                  Grand Total - Mental Health, Retardation, and Hospitals      450,058,633

Office of the Child Advocate                                                        

         General Revenues                                                                                414,844

         Federal Funds                                                                                       48,000

                  Grand Total - Child Advocate                                                     462,844

Commission on the Deaf and Hard of Hearing General Revenues                                     285,014

RI Developmental Disabilities Council Federal Funds                             548,888

Governor's Commission on Disabilities                                      

         General Revenues                                                                                534,430

         Federal Funds                                                                                      147,040

         Restricted Receipts                                                                                50,818

         Other Funds - RICAP - Facility Renovation - Handicap Access                                    500,000

                  Grand Total - Governor's Commission on Disabilities                1,232,288

Commission for Human Rights                                                    

         General Revenues                                                                                895,306

         Federal Funds                                                                                     270,822

                  Grand Total - Commission for Human Rights                            1,166,128

Mental Health Advocate General Revenues                                              317,656

Elementary and Secondary Education                                         

State Aid                                                                                        

         General Revenues                                                                           617,153,303

         Federal Funds                                                                                  1,256,890

                  Total - State Aid                                                                  618,410,193

School Housing Aid General Revenues                                                   40,747,193

Teacher's Retirement General Revenues                                                 45,448,832

RI School for the Deaf                                                                   

         General Revenues                                                                             5,631,171

         Federal Funds                                                                                  1,213,428

         Other funds - RICAP - School for the Deaf - Physical Ed. Fac.                                     200,000

                  Total - RI School for the Deaf                                                  7,044,599

Central Falls School District General Revenues                                     35,635,332

Davies Career and Technical School                                            

         General Revenues                                                                           11,329,692

         Federal Funds                                                                                  1,031,444

         Restricted Receipts                                                                              101,089

         Other Funds - RICAP - Davies Roof Repair                                        225,000

                  Total - Davies Career and Technical School                           12,687,225

Metropolitan Career and Technical School General Revenues                5,750,000

Program Operations                                                                      

         General Revenues                                                                           14,873,548

         Federal Funds                                                                              164,739,660

         Restricted Receipts                                                                           1,030,412

         Other Funds                                                                           

                  RICAP - East Providence Vocational HVAC                              300,580   

                  RICAP - State-Owned Schools - Fire Alarm Systems                   93,480

                   Total - Program Operations                                                 181,037,680

Transportation Study General Revenues                                                       10,000

         The Department of Elementary and Secondary Education shall conduct a study of the feasibility of a statewide busing contract including the transportation of students to and from charter schools, special education programs, and regional schools. The study shall include the collection and analysis of data received from each school district pursuant to this section which shall include the origin and destination of any pupil attending a school, including a public school, vocational school, special education program provided in accordance with regulations of the Board of Regents for Elementary and Secondary Education, a regional school established under the provisions of section 16-3-1 et seq., as authorized by section 16.3.1-1 et seq., or a nonpublic nonprofit school for grades kindergarten through (12), consolidated, regionalized, or otherwise established to serve residents of a specific area within the state for any of the grades of kindergarten through twelve (12).

         The results of the study shall be submitted to the General Assembly by November 1, 2003 with copies to the President of the Senate, the Speaker of the House, the Chairperson of the Senate Finance Committee, the Chairperson of the House Finance Committee, the Senate Fiscal Advisor and the House Fiscal Advisor.

                  Grand Total - Elementary and Secondary Education             946,771,054

Board of Governors                                                                      

          General Revenues                                                                        172,088,777

          Federal Funds                                                                                 3,021,462

          Other Funds

                  University and College Funds                                                398,848,671 

                  RICAP - Asset Protection/Roofs                                             8,770,000

                  RICAP - Biological Science Center                                             300,000

                  RICAP - Alger Hall                                                                1,500,000

                  RICAP - DCYF Facilities                                                        1,795,046

                  Grand Total - Board of Governors                                        586,323,956

RI State Council on the Arts                                                        

         General Revenues                                                                   

                  Operating Support                                                                       467,951

                  Grants                                                                                        1,846,272

         Federal Funds                                                                                     696,006

         Restricted Receipts                                                                              200,000

                  Grand Total - RI State Council on the Arts                               3,210,229

RI Atomic Energy Commission                                                   

         General Revenues                                                                                646,012

         Federal Funds                                                                                     325,000

         Other Funds                                                                           

                   URI Sponsored Research                                                          153,626

                  Grand Total - RI Atomic Energy Commission                           1,124,638

RI Higher Education Assistance Authority                                 

         General Revenue                                                                    

                  Needs Based Grants and Work Opportunities                          9,933,030

                  Authority Operations and Other Grants                                    1,126,632

         Federal Funds                                                                                  7,322,593

         Other Funds Tuition Savings Program - Administration                      4,062,797

                  Grand Total - RI Higher Education Assistance Authority         22,445,052

RI Historical Preservation and Heritage Commission               

         General Revenues                                                                                1,074,360

         Federal Funds                                                                                       534,534

         Restricted Receipts                                                                                 251,800

                  Grand Total - RI Historical Pres.and Heritage Comm.                 1,860,694

RI Public Telecommunications Authority                                    

         General Revenues                                                                                 1,196,530

         Federal Funds                                                                                    555,601

         Other Funds

              Corporation for Public Broadcasting                                               691,249

              RICAP – Digital Conversion                                                          2,300,000

              Grand Total - RI Public Telecommunications Authority                   4,743,380

Attorney General                                                                          

Criminal                                                                                        

         General Revenues                                                                           10,652,958

         Federal Funds                                                                                  1,372,107

         Restricted Receipts                                                                              183,722

                  Total - Criminal                                                                      12,208,787

Civil                                                                                               

         General Revenues                                                                             3,388,226

         Federal Funds                                                                                       66,529

         Restricted Receipts                                                                              447,017

                  Total - Civil                                                                             3,901,772

Bureau of Criminal Identification General Revenues                                  715,765

General General Revenues                                                                        1,810,149

                  Grand Total - Attorney General                                               18,636,473

Corrections                                                                                   

Central Management General Revenues                                                  9,603,293

Parole Board General Revenues                                                                  999,141

Institutional Corrections                                                               

         General Revenues                                                                         117,627,236

         Federal Funds                                                                                  7,647,967

         Restricted Receipts                                                                           2,737,500

         Other Funds                                                                           

                  RICAP - Perimeter/Security Upgrades                                        200,000

                  RICAP - Fire Code Safety Improvements                                   200,000

                  RICAP - High Security Fire Alarm HVAC                                  169,000

                  RICAP - Security Camera Installation                                         525,000

                  RICAP - Dix Expansion                                                              554,000

                  RICAP - Reintegration Center State Match                                 353,892

                  RICAP - General Renovations - Maximum                                  244,000

                  RICAP - General Renovations - Women's                                  500,000

                  RICAP - Women's Bath Renovations                                          561,000

                  RICAP - Food Plant Roof                                                          264,500

                  Total - Institutional Corrections                                            131,584,095

Community Corrections                                                                

         General Revenues                                                                           11,847,743

         Federal Funds                                                                                  1,813,402

                  Total - Community Corrections                                              13,661,145

                  Grand Total - Corrections                                                    155,847,674

Judiciary 

 Supreme Court                                                                             

         General Revenues                                                                   

                  General Revenues                                                                  21,937,094

                  Defense of Indigents                                                                 1,950,000

         Federal Funds                                                                                     163,687

         Restricted Receipts                                                                              888,521

         Other Funds                                                                           

                  RICAP - Murray Judicial Complex-Int Refurbishment                 198,000

                  RICAP - Garrahy Judicial Complex – Lighting/Ceiling                  15,000

                  RICAP - Fogarty Annex - Interior/Exterior                                   67,500

                  RICAP - Licht Judicial Complex - Foundation                               10,000

                  RICAP- Licht Judicial Complex - Roof Study                               25,000

                  Total - Supreme Court                                                             25,254,802

Superior Court                                                                               

         General Revenues                                                                           16,681,473

         Federal Funds                                                                                     164,420

                  Total - Superior Court                                                           16,845,893

Family Court                                                                                 

         General Revenues                                                                           12,621,565

         Federal Funds                                                                                  2,950,069

         Restricted Receipts                                                                              148,100

                  Total - Family Court                                                              15,719,734

District Court General Revenues                                                              7,923,671

Traffic Tribunal General Revenues                                                           6,219,918

Workers' Compensation Court Restricted Receipts                                  6,009,169

Justice Link Program                                                                    

         Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget," all unexpended, encumbered and unencumbered general revenue and federal fund appropriations for the Justice Link program in the Judicial Department at the end of fiscal year 2002 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

         General Revenues                                                                                434,040

         Federal Funds                                                                                     471,540

                  Total - Justice Link Program                                                       905,580

                  Grand Total - Judiciary                                                          78,878,767

Military Staff                                                                                

National Guard                                                                             

         General Revenues                                                                             1,677,623

         Federal Funds                                                                                  7,908,381

         Other Funds                                                                           

                  RICAP - Bristol Armory Rehabilitation                                        100,000

                  RICAP - Benefit St. Arsenal Rehabilitation                                  130,000

                  RICAP - Schofield Armory Rehabilitation                                     20,000

                  RICAP - Warren Armory                                                           175,000

                  RICAP - US Property & Finance Office - HVAC                         45,000

                  RICAP - Warwick Armory Boiler                                                 25,000

                  RICAP - Army Aviation Support Facility                                      25,000

                   RICAP - North Smithfield Armory                                               41,250

                  RICAP – AMC -Roof Replacement                                           100,000

                  RICAP - CSMS/ Armory Construction                                       376,250

                  Total - National Guard                                                           10,623,504

Emergency Management                                                               

         General Revenues                                                                            1,119,097

         Federal Funds                                                                                26,885,967

         Restricted Receipts                                                                              128,157

                  Total - Emergency Management                                             28,133,221

                  Grand Total - Military Staff                                                    38,756,725

E-911 Emergency Telephone System General Revenues                       4,365,704

Fire Safety Code Board of Appeal and Review General Revenues                                    235,469

State Fire Marshal                                                                       

         General Revenues                                                                             1,739,123

         Federal Funds                                                                                     285,530

                  Grand Total - State Fire Marshall                                             2,024,653

Commission on Judicial Tenure and Discipline General Revenues                                     113,455

Rhode Island Justice Commission                                               

         General Revenues                                                                                163,492

         Federal Funds                                                                                  5,700,884

         Restricted Receipts                                                                                90,000

                  Grand Total - Rhode Island Justice Commission                       5,954,376

Municipal Police Training Academy                                            

         General Revenues                                                                                356,387

         Federal Funds                                                                                       35,000

                  Grand Total - Municipal Police Training Academy                       391,387

State Police                                                                                                             

         General Revenues                                                                           40,575,638

         Federal Funds                                                                                  1,299,900

         Restricted Receipts                                                                              223,468

         Other Funds                                                                           

                  RICAP - Barracks and Training Headquarters                             325,000

                  RICAP - Headquarters Repairs/Renovations                               107,337

                  Traffic Enforcement - Municipal Training                                     150,000

                  Lottery Commission Assistance                                                   123,809

                  Road Construction Reimbursement                                           1,499,175

                  Grand Total - State Police                                                      44,304,327

Office of Public Defender                                                             

         General Revenues                                                                             6,567,522

         Federal Funds                                                                                     441,822

                  Grand Total - Office of Public Defender                                   7,009,344

Environmental Management                                                       

Policy and Administration                                                             

         General Revenues                                                                             8,194,611

         Federal Funds                                                                                  2,939,219

         Restricted Receipts                                                                           3,065,657

         Other Funds                                                                           

                  DOT Recreational Projects                                                           21,031

                  Blackstone Bikepath Design                                                     1,244,288

                  RICAP - Dam Repair                                                              1,264,000

                  Total - Policy and Administration                                            16,728,806

Natural Resources                                                                         

         General Revenues                                                                           15,053,323

         Federal Funds                                                                                13,667,841

         Restricted Receipts                                                                           3,676,844

         Other Funds                                                                           

                  RICAP - Fort Adams Rehabilitation                                            250,000

                  RICAP - Recreational Facilities Improvement                              650,000

                  RICAP - Wickford Marine Facility                                               50,000

                  RICAP - Galilee Piers                                                              1,200,000

                  RICAP - Boyd's Marsh Habitat Restoration                                330,000

                  Total - Natural Resources                                                      34,878,008

Environmental Protection                                                             

         General Revenues                                                                             7,769,300

         Federal Funds                                                                                  8,566,154

         Restricted Receipts                                                                           3,305,322

         RIPDES Program                                                                                         0

         General Revenue                                                                               $662,540

         Federal Funds                                                                                   $180,000

        

                  Total - Environmental Protection                                            20,483,316

                  Grand Total - Department of Environmental Management                                 72,090,130

Coastal Resources Management Council                                   

         General Revenues                                                                             1,421,021

         Notwithstanding the provisions of section 35-3-15 of the general laws of chapter 35-3 entitled “State Budget”, all unexpended, encumbered and unencumbered balances from the computerized database management system of the appropriation in general revenues for the Coastal Resources Management Council at the end of the fiscal year 2003 shall be reappropriated in the ensuing fiscal year and made immediately available for the purposes for which they were originally appropriated.

         Federal Funds                                                                                  1,466,000

         Restricted Receipts                                                                           4,500,000

         Other Funds - RICAP - South Coast Restoration Project                     968,267

                  Grand Total - Coastal Resources Management Council            8,355,288

State Water Resources Board                                                     

         General Revenues                                                                                940,992

         Restricted Receipts                                                                              984,000

         Other Funds - RICAP - Big River Management Area                             80,000

                  Grand Total - Water Resources Board                                     2,004,992

Transportation                                                                              

Central Management                                                                     

         Federal Funds                                                                                  9,222,128

         Other Funds - Gasoline Tax                                                              3,263,692

                  Total - Central Management                                                   12,485,820

Management and Budget Other Funds - Gasoline Tax                             2,065,834

Infrastructure Maintenance Other Funds - Gasoline Tax                       39,177,943

Infrastructure - Engineering                                                          

         Federal Funds                                                                              188,009,292

         Restricted Receipts                                                                         36,407,911

         Other Funds                                                                           

                  Gasoline Tax                                                                          53,608,993

                  Land Sale Revenue                                                                  4,000,000

                  State Infrastructure Bank                                                          1,000,000

                  Total - Infrastructure - Engineering                                       283,026,196

                  Grand Total - Transportation                                                336,755,793

Statewide Totals                                                                           

         General Revenues                                                                      2,783,776,459

         Federal Funds                                                                           1,837,498,843

         Restricted Receipts                                                                       144,636,954

         Other Funds                                                                                 974,646,693

                  Statewide Grand Total                                                      5,740,558,949

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

SECTION 3. Upon the transfer of any function of a department or agency to another department or agency, the Governor is hereby authorized by means of executive order to transfer or reallocate, in whole or in part, the appropriations and the full-time equivalent limits affected thereby.

SECTION 4. From the appropriation for contingency shall be paid such sums as may be required at the discretion of the Governor and the Director of Administration to fund expenditures for which appropriations may not exist.  Such contingency funds may also be used for expenditures in the several departments and agencies where appropriations are insufficient, or where such requirements are due to unforeseen conditions or are non-recurring items of an unusual nature.  Said appropriations may also be sued for the payment of bills incurred due to emergencies or to any offense against public peace and property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as amended.  All expenditures and transfers from this account shall be approved by the Director of Administration and the Governor.

SECTION 5. The reimbursement of any state department or agency for the cost of work or services performed for any other department or agency is hereby authorized, subject to regulations promulgated by the Director of Administration.

SECTION 6. The General Assembly may provide a written “statement of legislative intent” signed by the chairperson of the House Finance Committee and by the chairperson of the Senate Finance Committee to show the intended purpose of the appropriations contained in Section 1 of this Article.  The statement of legislative intent shall be kept on file in the House Finance Committee and in the Senate Finance Committee.

At least twenty (20) days prior to the issuance of a grant or the release of funds, which grant or funds are listed on the legislative letter of intent, all department, agency and corporation directors, shall notify in writing the chairperson of the House Finance Committee and the chairperson of the Senate Finance Committee of the approximate date when the funds are to be released or granted.

SECTION 7. Appropriation of Temporary Disability Insurance Funds – There is hereby appropriated pursuant to section 28-39-5 and 28-39-8 of the Rhode Island General Laws all funds required to be disbursed for the benefit payments from the Temporary Disability Insurance Fund and the Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 2004.

SECTION 8. Appropriation of the Employment Security Funds – There is hereby appropriated pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 2004.

SECTION 9. Appropriation of University and College Funds – There is hereby appropriated pursuant to section 16-59-9 of the Rhode Island General Laws relating to the appropriation of funds by the General Assembly for Higher Education, and section 16-59-18 of the General Laws relating to receipts from sources other than appropriations, any funds received by the Board of Governors for Higher Education for the fiscal year ending June 30, 2004 payable out of the University and College Funds.

SECTION 10.  Departments and agencies listed below may not exceed the number of full-time equivalent (FTE) positions shown below in any pay period. Full-time equivalent positions do not include seasonal or intermittent positions whose scheduled period of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period.  Nor do they include individuals engaged in training, the completion of which is a prerequisite of employment.  Nor do they include positions established under the Board of Governors for Higher Education which are funded by non-general revenue thirty party funding through the following accounts:  University of Rhode Island Sponsored Contract Research; Rhode Island College Sponsored Research –Federal; Community College of Rhode Island Sponsored Research—Federal; and Office of Higher Education Sponsored Research—Federal.

Provided, however, that the Governor or designee, Speaker of the House of Representatives or designee, and the President of the Senate or designee may authorize an adjustment to any limitation.  Prior to the authorization, the State Budget Officer shall make a detailed written recommendation to the Governor, the Speaker of the House, and the President of the Senate.  A copy of the recommendation and authorization to adjust shall be transmitted to the chairman of the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

            FTE POSITION AUTHORIZATION

Departments and Agencies                                                           Full-Time Equivalent

Administration                                                                                        1,261.2

Business Regulation                                                                                 109.0

Labor and Training                                                                                  536.7

Legislature                                                                                              280.0

Lieutenant Governor                                                                                 10.0

State                                                                                                        59.0

General Treasurer                                                                                    84.5

Boards for Design Professionals                                                                4.0

Board of Elections                                                                                    15.0

Rhode Island Ethics Commission                                                                9.0

Office of Governor                                                                                   47.5

Public Utilities Commission                                                                       45.0

Rhode Island Commission on Women                                                         2.0

Children, Youth, and Families                                                                   849.8

Elderly Affairs                                                                                         52.6

Health                                                                                                    502.9

Human Services                                                                                     1,058.6

Mental Health, Retardation, and Hospitals                                                2,021.7

Office of the Child Advocate                                                                     5.8

Commission on the Deaf and Hard of Hearing                                            3.0

RI Developmental Disabilities Council                                                        2.0

Governor's Commission on Disabilities                                                        6.6

Commission for Human Rights                                                                  15.0

Mental Health Advocate                                                                            3.7

Elementary and Secondary Education                                                          326.7

Higher Education ‑ Board of Governors                                                     3,472.1

Rhode Island State Council on the Arts                                                       7.0

RI Atomic Energy Commission                                                                  8.6

Higher Education Assistance Authority                                                      45.6

Historical Preservation and Heritage Commission                                       17.6

Public Telecommunications Authority                                                        22.0

Attorney General                                                                                     228.5

Corrections                                                                                                  1,522.0

Judiciary                                                                                                 734.5

Military Staff                                                                                            93.0

E-911 Emergency Telephone System                                                         50.6

Fire Safety Code Bd. of Appeal and Review                                               3.0

RI State Fire Marshal                                                                               27.0

Commission on Judicial Tenure and Discipline                                             1.0

Rhode Island Justice Commission                                                               9.0

Municipal Police Training Academy                                                           4.0

State Police                                                                                             257.0

Office of Public Defender                                                                         86.2

Environmental Management                                                                     539.7

Coastal Resources Management Council                                                   28.0

State Water Resources Board                                                                    9.0

Transportation                                                                                         812.7

                 Total                                                                                  15,289.4

SECTION 11. The amounts reflected in this Article include the appropriation of Rhode Island Capital Plan funds for fiscal year 2004 and supersede appropriations provided for FY 2004 within Section 12 of Article 1 of Chapter 65 of the P.L. of 2002.

The following amounts are hereby appropriated out of any money in the State’s Rhode Island Capital Plan Fund not otherwise appropriated to be expended during the fiscal years ending June 30, 2005, June 30, 2006, June 30, 2007 and June 30, 2008.  These amounts supersede appropriations provided within Section 12 of Article 1 of Chapter 65 of the P.L. 2002.  For the purposes and functions hereinafter mentioned, the State Controller is hereby authorized and directed to draw his or her orders upon the General Treasurer for the payment of such sums and such portions thereof as may be required by him or her upon receipt of properly authenticated vouchers.

                                 Fiscal Yr. End.      Fiscal Yr. End.    Fiscal Yr. End.  Fiscal Yr.End.

                                 June 30, 2005         June 30, 2006     June 30, 2007     June 30, 2008

Project

  Legislative Office Bldg.    5,062,500                 6,750,000                1,687,500                -

 

 State-Owned Facilities –

  Fire Alarm Systems           100,000                   100,000                   -                             -

 

URI Residence Halls

  Modernization/Renovation  6,000,000                8,000,000                6,000,000

 

CCRI Newport Campus      1,544,000                -

Channel 36 Digital

    Conversion                      1,200,000                -                             -                             -

 

Reintegration Center            253,247                   -                             -                            

-

Women’s Plumbing/

 Bathroom Renovations        446,700                   -                             -                            

-

Armory of Mounted Commands

   Slate Roof/HVAC            500,000                   600,000                   600,000                   900,000

 

North Smithfield Armory      41,250                     -                             -                             -

 

Schofield Armory Exterior   100,000                   120,000                   -                             -

 

Armory Aviation Support

  Facility                              50,000                     -                             -                             -

 

Combined Support

  Maintenance Shop             6,250                      93,750                     -                             -           -

 

Combined Support Maint.

  Shop and Armory              376,250                   -                             -                             -

 

USPFO HVAC                   65,000                     -                             -                            

-

Wickford Marine

  Facilities                           200,000                   200,000                   -                             -

 

State-Owned Dams –

  Repairs                             1,650,000                2,200,000                850,000                   750,000

 

Boyd’s Marsh Habitat

   Restoration                      100,000                   -                             -                             -

SECTION 12. Reappropriation of Funding for Rhode Island Capital Plan Fund Projects. – Any unexpected funds from Rhode Island Capital Plan Fund project appropriations shall be reappropriated in the ensuing fiscal year and made available for the same purpose.

SECTION 13. This article shall take effect on July 1, 2003.

 

ARTICLE 2

RELATING TO COMPENSATION OF BOARD MEMBERS

SECTION 1.  For the fiscal year ending June 30, 2004, the compensation paid to commissioners and board members for attendance at board meetings of the following state agencies and autonomous and semi-autonomous boards and commissions authorized under the general laws of this state is suspended.  Reimbursement for travel costs to said meetings will continue to be allowable in accordance with existing state travel regulations.

                                                                 R.I.G.L.                         Compensation

Board/Commission Title                        Reference                       (per Meeting)

Accountancy                                            5-3.1-4                                      30.00

Electricians                                               5-6-27                                       25.00

Engineers                                                 5-8-5                                         25.00

Land Surveyors                                        5-8.1-6                                      25.00

Hairdressers, Cosmeticians

   and Manicurists                                     5-10-4                                       25.00

Real Estate Appraisers                              5-20.7-4                                    75.00

Real Estate Commission                            5-20.5-12                                  25.00

Plumbing Examiners                                  5-20-7                                       25.00

Professional Regulation                             5-26-5                                       20.00/40.00

Barber Examiners                                     5-10-4                                       25.00

Chiropractics                                            5-30-15                                     10.00

Examiners in Dentistry                              5-31.1-2                                  100.00

Nursing                                                    5-34-8                                       50.00

Health Services Council                            27-7-14.2                                  50.00

Optometrists                                             5-35-3                                       30.00

Medical Licensure & Discipline                 5-37-1.1                                  100.00

Hearing Aid Dealers & Fitters                   5-49-15                                     25.00

Landscape Architects                               5-51-2                                       25.00

Board of Governors for

  Higher Education                                    16-59-1                                     50.00/75.00

Board of Regents                                      16-60-1                                     75.00

Public Telecommunications

   Authority                                               16-61-4                                     50.00/75.00

Legislative Oversight                                 22-14-1                                     50.00

Building Code Commission                        23-27.3-108.2.2                         50.00/75.00

Fire Appeal and Review                            23-28.3-4                                  50.00/75.00

Pipefitters and

  Refrigeration Technicians                        28-27-3                                     25.00

Apprenticeship Training                             28-45-2                                     45.00

Commission for Human Rights                   28-5-11                                     50.00

Motor Dealers License                              31-5-2.1                                    40.00

Medical Advisory -- Motor

   Vehicles                                                31-10-44                                   50.00

Investment                                               35-10-7                                     75.00

Ethics                                                       36-14-8                                   100.00

Racing and Athletics                                 41-2-2                                       25.00

Pilotage                                                    46-9.1-3                                    50.00

Water Resources Board                            46-15.1-2.4                                50.00/75.00

Coastal Resources Management                46-23-5                                     50.00/75.00

Narragansett Bay Water

   Quality Distributors                                46-25-8                                     50.00

Vehicle Value Commission                        44-34-11                                   50.00

Police and Fire Relief                                45-19-6                                     25.00

SECTION 2.  Notwithstanding the boards and commissions identified in Section 1, it is the intent of this article to suspend the compensation paid to members of all state agencies and autonomous and semi-autonomous boards and commissions authorized compensation under the general laws of Rhode Island, except for the Medical Advisory Board of the Workers' Compensation Court pursuant to section 28-30-22 of the general laws.

SECTION 3.  This article shall take effect as of July 1, 2003.

           

ARTICLE 3

Relating To Borrowing in Anticipation of Taxes

 

SECTION 1.  The State of Rhode Island is hereby authorized to borrow during its fiscal year ending June 30, 2004, in anticipation of receipts from taxes such sum or sums, at such time or times and upon such terms and conditions not inconsistent with the provisions and limitations of Section 17 of Article VI of the constitution of Rhode Island, as the general treasurer, with the advise of the Governor, shall deem for the best interests of the state, provided that the amounts so borrowed shall not exceed two hundred million dollars ($200,000,000) dollars, at any time outstanding.   The state is hereby further authorized to give its promissory note or notes signed by the general treasurer and counter-signed by the secretary of state for the payment of any sum so borrowed.  Any such proceeds shall be invested by the general treasurer until such time as they are needed.  The interest income earned from such investments shall be used to pay the interest on the promissory note or notes, and any expense of issuing the promissory note or notes, with the balance remaining at the end of said fiscal year, if any, shall be used toward the payment of long-term debt service of the state, unless prohibited by federal law or regulation.

Notwithstanding any other authority to the contrary, duly authorized bonds or notes of the state issued during the fiscal year ending June 30, 2004 may be issued in the form of commercial paper, so-called.  In connection herewith, the state, acting through the general treasurer, may enter into agreements with banks, trust companies or other financial institutions within or outside the state, whether in the form of letters or lines of credit, liquidity facilities, insurance or other support arrangements.  Any notes issued as commercial paper shall be in such amounts and bear such terms as the general treasurer, with the advice of the governor, shall determine, which may include provisions for prepayment at any time with or without premium at the option of the state.  Such notes may be sold at a premium or discount, and may bear interest or not and, if interest bearing, may bear interest at such rate or rates variable from time to time as determined by the Federal Reserve Bank Composite Index of Commercial Paper, or the Municipal Market Data General Market Index or other similar commercial paper offerings, or other method specified in any agreement with brokers for the placement or marketing of any such notes issued as commercial paper, or other like agreements.  Any such agreement may also include such other covenants and provisions for protecting the rights, security and remedies of the lenders as may, in the discretion of the general treasurer, be reasonable, legal and proper.  The general treasurer may also enter into agreements with brokers for the placement or marketing of any such notes of the state issued as commercial paper.  Any notes to the state issued as commercial paper in anticipation of receipts from taxes in any fiscal year must also be issued in accordance with the provisions of Section 17 of Article VI of the constitution of Rhode Island and within the limitations set forth in Section 1 of this act.

SECTION 2.  This article shall take effect as of July 1, 2003.

ARTICLE 4

RELATING TO DEPOSITORS ECONOMIC PROTECTION CORPORATION – sinking fund

SECTION 1. Section 35-8-11 of the General Laws in Chapter 35-8 entitled "Bonded Indebtedness of State" is hereby amended to read as follows:

35-8-11. Payments into sinking funds. -- In fiscal year 2000, and each subsequent fiscal year, there shall be appropriated a sum at least equal to the total of the following: the sinking fund commission's estimate of savings generated for that fiscal year from the commission's prior fiscal years' refinancing of debt; the sinking fund commission's estimate of the total debt service payments, principal and interest, of the debt retired by the commission in prior fiscal year; the sinking fund commission's estimate of the total debt service payments, principal and interest, of the general obligation debt not issued in accordance with section 35-8-6.2 in the prior fiscal year; and the total interest generated by the proceeds of general obligation bond, net of the arbitrage rebate for that year, as estimated by the Revenue Estimating Conference. Payments into the sinking fund shall also include those received pursuant to section 42-116-25, net of costs incurred by the department or agency assuming management of the assets of the Depositors' Economic Protection Corporation, which shall not be subject to annual appropriation.

 In fiscal years 2001, 2002, and 2003, and 2004 there shall be appropriated a sum at least equal to the total of the following: the sinking fund commission's estimate of savings generated for that fiscal year from the commission's prior fiscal years' refinancing of debt; the sinking fund commission's estimate of the total debt service payments, principal and interest, of the debt retired by the commission in prior fiscal year; and the sinking fund commission's estimate of the total debt service payments, principal and interest, of the general obligation debt not issued in accordance with section 35-8-6.2 in the prior fiscal year.

SECTION 2. Section 42-116-25.1 of the General Laws in Chapter 42-116 entitled "Rhode Island Depositors Economic Protection Corporation" is hereby amended to read as follows:

42-116-25.1. Defeasance of corporation bonds. --  Upon final defeasance of all corporation bonds, forty-six million seven hundred thousand dollars ($46,700,000) fifty million one hundred thousand dollars ($50,100,000) of corporation proceeds from all sources when made available by the corporation shall be paid to the general fund on a quarterly basis. All additional corporate proceeds shall be paid to the sinking fund on a quarterly basis.

SECTION 3. Section 42-116-2 of the General Laws in Chapter 42-116 entitled “Rhode Island Depositors Economic Protection Corporation” is hereby amended by adding thereto the following section:

42-116-25.2. Indemnification.  The state shall indemnify the tax administrator and any of his/her agents for any recovery against the administrator in his/her personal capacity arising out of any act or omission occurring within the scope of the administrator's duties; provided that the act or omission is not the result of fraud, willful misconduct, or malice.

SECTION 4. Article 5, Section 8, entitled "Sale of Bonds" and Section 10, entitled "Investment of Moneys in Fund" of Chapter 55 of the Public Laws of 2000, as amended, are hereby amended as follows:

Section 8. For the fiscal years FY 2001, FY 2002, and FY 2003 and FY 2004, any premium and accrued interest which may be received on the sale of the capital development bonds shall become part of the general fund of the state and shall be applied to the payment of debt service charges of the state.

Section 10. Investment of moneys in fund.  For the fiscal years FY 2001, FY 2002, and FY 2003 and FY 2004, all moneys in the capital development funds not immediately required for payment pursuant to the provisions of this article may be invested by the investment commission, as established by Chapter 35-10, pursuant to the provisions of such chapter; provided, however, that the securities in which the capital development fund is invested shall remain a part of the capital development fund until exchanged for other securities; and provided further, that the income from investments of the capital development fund shall become a part of the general fund of the state and shall be applied to the payment of debt service charges of the state, or to the extent necessary, to rebate to the United States treasury any income from investments (including gains from the disposition of investments) of proceeds of bonds to the extent deemed necessary to exempt (in whole or in part) the interest paid on such bonds from federal income taxation.

SECTION 5.  This article shall take effect on January 1, 2004 July 1, 2003.

 

ARTICLE 5

Relating To Capital Development Program

SECTION 1.  Extension of previous authorizations. -- The general assembly, pursuant to the provisions of section 35-8-25 of the general laws, hereby extends to the termination dates contained herein, the authority to issue the following general obligation bond authorizations in the amounts stated.  The original authorizations enacted by public law and approved by the people, remain unissued as of February 1, 2003 and are as follows:

                                                                                      Unissued

                                                                                   Amount to be

  Purpose                            Statutory  Reference        Extended      Termination Date

   Higher Education Facilities           Ch. 100 – P.L. of 1996       $2,313,485       June 30, 2004

   Quonset Point/Davisville               Ch. 100 – P.L. of 1996       $15,185,000     June 30, 2006

The general assembly hereby extends for an additional year the authorization granted to the Rhode Island Industrial Recreational Building Authority provided by Chapter 91 of the Public Laws of 1958, and Chapter 537, Section 3, of the Public Laws of 1987.

SECTION 2.  This article shall take effect upon passage.

ARTICLE 6

Relating To Public Utilities Metering Devices

SECTION 1.  Section 47-16-1 of the General Laws in Chapter 47-16 entitled “Public Utilities Metering Devices” is hereby amended to read as follows:

47-16-1.  Testing of metering devices – Forbidding use – Fee. -- The director administrator of labor and training the division of public utilities and carriers is hereby authorized and directed to conduct spot tests of all metering devices used in the sale of electricity, water, or natural gas at least once a year, and the number of metering devices checked each year shall be such as in the director’s administrator's judgment is necessary to constitute a fair sampling of metering devices in use to prevent fraud or deception in the use of the devices, or to insure the accurate measurement of those commodities in any sale. Any town or city sealer of weights, measures, and balances shall have authority to condemn and forbid the use of any metering device for the sale of electricity, water, or natural gas in his or her respective town or city, or until the device has been duly tried and sealed, or until the metering device has been equipped with such attachment, contrivance, or apparatus as will insure the correct and proper functioning of the measuring device for the sale of the electricity, water, or natural gas by accurate measurement.

SECTION 2.  This article shall take effect as of July 1, 2003.

ARTICLE 7

relating to taxes

 

SECTION 1.  Chapter 44-11 of the General Laws in Title 44 entitled “Business Corporation Tax” is hereby amended by adding thereto the following section:

44-11-14.6.  Allocation and apportionment – Manufacturers.—(a) Notwithstanding any other provision of the general laws, a taxpayer described in subsection (a) of section 44-11-14 whose principal business is described in sector 31, 32, or 33 of the North American Industry Classification System, as adopted by the United States Office of Management and Budget and as revised from time to time, may, in lieu of apportioning its net income to this state based on the allocation fraction described in section 44-11-14(a), elect for any year to apportion its net income to this state based on the following allocation fraction:

(1) for the tax year beginning on or after January 1, 2004, but before January 1, 2005, thirty percent (30%) of the property factor determined pursuant to section 44-11-14(a)(1) (the “property factor”), thirty percent (30%) of the payroll factor determined pursuant to section 44‑11‑14(a)(3) (the “payroll factor”), and forty percent (40%) of the sales factor determined pursuant to section 44-11-14(a)(2) (the “sales factor”);

(2) for tax years beginning on or after January 1, 2005, twenty-five percent (25%) of the property factor, twenty-five percent (25%) of the payroll factor and fifty percent (50%) of the sales factor.

 SECTION 2. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal Income Tax" is hereby amended to read as follows:

44-30-2.6. Rhode Island taxable income -- Rate of tax. -- (a) "Rhode Island taxable income" means federal taxable income as determined under the Internal Revenue Code [26 U.S.C. section 1 et seq.] as amended, not including the increase in the basic standard deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and as modified by the modifications in section 44-30-12.

 (b) Notwithstanding the provisions of sections 44-30-1 and 44-30-2, for tax years beginning on or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002, and thereafter of the federal income tax rates, including capital gains rates and any other special rates for other types of income, except as provided in section 44-30-2.7, which were in effect immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), provided, however, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable year 2002, and thereafter in the manner prescribed for adjustment by the commissioner of Internal Revenue in 26 U.S.C. section 1(f).

 (c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by multiplying the federal tentative minimum tax without allowing for the increased exemptions under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as determined redetermined on federal form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002, and thereafter, and comparing the product to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer's Rhode Island alternative minimum tax.

 (d) Credits against tax. - For tax years beginning on or after January 1, 2001, a taxpayer entitled to any of the following federal credits enacted prior to January 1, 1996:

 Earned income credit;

 Child and dependent care credit;

 General business credit(s);

 Foreign tax credit;

 Credit for elderly or the disabled;

 Credit for prior year minimum tax;

 Mortgage interest credit;

 Empowerment zone employment credit;

 Qualified electric vehicle credit;

 Shall be entitled to a credit against the Rhode Island tax imposed under this section. The credit shall be twenty-five and one-half percent (25.5%) of the aforementioned federal credits for tax year 2001, and shall be twenty-five percent (25%) of the aforementioned federal credits for tax year 2002 and thereafter, provided, further, there shall be no deduction based on any federal credit(s) enacted after January 1, 1996, including the rate reduction credit provided by the federal Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax purposes shall determine the Rhode Island amount to be recaptured in the same manner as prescribed in this subsection.

SECTION 3. Section 44-61-1 of the General Laws in Chapter 44-61 entitled "Relating To Depreciation of Assets and Net Operating Loss Deduction" is hereby amended to read as follows:

44-61-1. Depreciation of assets. -- (a) For purposes of depreciation of assets under chapters 11, 14 and 30 of this title, the bonus depreciation provided by the Job Creation and Worker Assistance Act of 2002 (P.L. 107-147) [see 26 U.S.C. section 168] and the Jobs and Growth Tax Relief Reconciliation Act of 2003 for federal tax purposes shall not be allowed for Rhode Island tax purposes. In the year that those assets are placed in service and in all subsequent years, depreciation for Rhode Island tax purposes shall be allowed on those assets as it would have been computed prior to the enactment of the Job Creation and Worker Assistance Act of 2002.

 (b) The gain resulting from any subsequent disposition of these asset(s) shall be computed using a basis consistent with the Rhode Island depreciation allowed under subsection (a) of this section.

SECTION 4. Chapter 44-61 of the General Laws entitled  "Relating To Depreciation of Assets and Net Operating Loss Deduction" is hereby amended by adding thereto the following section:

44-61-1.1. Expensing in lieu of depreciation of assets. – (a) For purposes of expensing of assets under chapters 11, 14 and 30 of this title, the additional expensing of assets for federal tax purposes under section 179 of the Internal Revenue Code provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003 shall not be allowed for Rhode Island tax purposes. In the year that those assets are placed in service and in all subsequent years, expenses and depreciation for Rhode Island tax purposes shall be allowed on those assets as it would have been computed prior to the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

(b) The gain resulting from any subsequent disposition of these asset(s) shall be computed using a basis consistent with the Rhode Island expenses and depreciation allowed under subsection (a) of this section.

SECTION 5. Chapter 44-30 of the General Laws entitled  "Personal Income Tax" is hereby amended by adding thereto the following section:

44-30-98. Refundable earned income credit. – A taxpayer shall be allowed a credit as provided in section 44-30-2.6(d) provided; however, five percent (5%) of the excess Rhode Island earned income credit will be refunded for the 2003 taxable year and each taxable year thereafter.

SECTION 6. Sections 44-20-12, 44-20-12.1 and 44-20-13 of the General Laws in Chapter 44-20 entitled "Cigarette Tax" are hereby amended to read as follows:

44-20-12. Tax imposed on cigarettes sold. -- A tax is imposed on all cigarettes sold or held for sale in the state by any person, the payment of the tax to be evidenced by stamps affixed to the packages containing the cigarettes and as required by the administrator. Any cigarettes on which the proper amount of tax provided for in this chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of sixty-six (66) eighty-five and one-half (85.5) mills for each cigarette. The tax shall further increase by 9 mills for each cigarette on July 1, 2003 and shall further increase by 5 mills for each cigarette on July 1, 2004 and each July 1 thereafter through July 1, 2008.

44-20-12.1. Floor stock tax on cigarettes and stamps. -- (a) Whenever used in this section, unless the context requires:

 (1) "Cigarette" means and includes any cigarette as defined in section 44-20-1(2);

 (2) "Person" means and includes each individual, firm, fiduciary, partnership, corporation, trust, or association however formed.

 (b) Each person engaging in the business of selling cigarettes at retail in this state pays a tax or excise to the state for the privilege of engaging in that business during any part of the calendar years year 2003. through 2008. In calendar years year 2003, through 2008, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on each July 1 and is computed at the rate of 9 mills for each cigarette on July 1, 2003 and is computed at the rate of 5 mills for each cigarette on July 1, 2004, and each July 1 thereafter through July 1, 2008.  nineteen and one-half (19.5) mills for each cigarette on July 1, 2003.

 (c) Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in business during any part of the calendar years 2002 through 2008. year 2003. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by section 44-20-28. In calendar year 2002 2003 the tax is measured by the number of stamps, as defined in subsection 44-20-1(10), whether affixed or to be affixed, held by the distributor at 12:01 a.m. on May 1, 2002  July 1, 2003 and is computed at the rate of 16 mills nineteen and one-half (19.5) mills per cigarette in the package to which the stamps are affixed or to be affixed. In calendar years 2003 through 2008 the tax shall be measured by the number of stamps, as defined in section 44-20-1(10), whether affixed or to be affixed, held by the distributor at 12:01 a.m. on each July 1, and is computed at the rate of 9 mills per cigarette in the package to which the stamps are affixed or to be affixed on July 1, 2003, and computed at the rate of 5 mills per cigarette in the package to which the stamps are affixed or to be affixed on each July 1 thereafter through July 1, 2008.

 (d) Each person subject to the payment of the tax imposed by this section shall, on or before June 17, 2002, July 16, 2003, and each July 16 thereafter through July 16, 2008, file a return, under oath or certified under the penalties of perjury, with the tax administrator on forms furnished by him or her, showing the amount of cigarettes or stamps in that person's possession in this state at 12:01 a.m. on May 1, 2002, July 1, 2003, and each July 1 thereafter through July 1, 2008, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.

 (e) The tax administrator may prescribe rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax imposed by this section.

44-20-13. Tax imposed on unstamped cigarettes. -- A tax is imposed at the rate of sixty-six (66) eighty-five and one-half (85.5) mills for each cigarette upon the storage or use within this state of any cigarettes not stamped in accordance with the provisions of this chapter in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state. The tax shall further increase by 9 mills for each cigarette on July 1, 2003 and shall further increase by 5 mills for each cigarette on July 1, 2004, and each July 1 thereafter through July 1, 2008.

SECTION 7. Section 44-59-10 of the General Laws in Chapter 44-59 entitled "Uniform Sales And Use Tax Administration Act" is hereby amended to read as follows:

44-59-10. Sunset provision. -- This chapter shall be repealed on June 30, 2003 2004, without further action by the general assembly, if the statutory amendments to the sales and use tax law necessary to bring this state into compliance with the Streamlined Sales and Use Tax Agreement are not enacted by the general assembly by June 30, 2003 2004.

SECTION 8.  Chapter 44-1 of the General Laws entitled "State Tax Officials" is hereby amended by adding thereto the following section:

44-1-34. Tax Administrator to prepare list of delinquent taxpayers – Notice -- Public inspection. -- (a) Notwithstanding any other provision of law, the tax administrator, may, on a quarterly basis, prepare a list of the one hundred (100) delinquent taxpayers who owe the largest amount of state tax and whose taxes have been unpaid for a period in excess of ninety (90) days following the date their tax was due.  Any such list may contain the name and address of each delinquent taxpayer, the type of tax levied, and the amount of the delinquency, including interest and penalty, as of the end of the quarter. No taxpayer shall be included on such list if the tax assessment in question is the subject of appeal.

(b) The tax administrator shall not list any delinquent taxpayer until such time as he/she gives the delinquent taxpayer thirty (30) days notice of intent to publish the taxpayer’s delinquency.  Said notice shall be sent to the taxpayer’s last known address by regular and certified mail.  If during said thirty (30) day period the taxpayer makes satisfactory arrangement for payment of the delinquent tax, the name of such taxpayer shall not be published as long as the taxpayer does not default on any payment agreement entered into with the division of taxation.

(c) Any such list prepared by the tax division shall be available to the public for inspection by any person and may be published by the tax administrator on the tax division website.

SECTION 9. Section 44-18-18.1 of the General Laws in Chapter 44-18 entitled "Sales and Use Taxes - Liability and Computation" is hereby amended by adding thereto the following section:

 44-18-18.1 Local meals and beverage tax.(a) There is hereby levied and imposed, upon every purchaser of a meal and/or  beverage, in addition to all other taxes and fees now imposed by law, a local sales/use tax upon each and every meal and/or beverage sold within the state of Rhode Island in or from an eating and/or drinking establishment, whether prepared in the eating and/or drinking establishment or not and whether consumed at the premises or not, at a rate of one percent (1%) of the gross receipts. The tax shall be paid to the tax administrator by the retailer at the time and in the manner provided.

(b) All sums received by the division of taxation under this section as taxes, penalties or forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid by the state treasurer to the city or town where the meals and beverages are delivered.

(c) When used in this section, the following words have the following meanings:

(1) “Beverage” means all nonalcoholic beverages, as well as alcoholic beverages, beer, lager beer, ale, porter, wine, similar fermented malt or vinous liquor.

(2) “Meal” means any prepared food or beverage offered or held out for sale by an eating and/or drinking establishment for the purpose of being consumed by any person to satisfy the appetite and which is ready for immediate consumption. All such food and beverage, unless otherwise specifically exempted or excluded herein shall be included, whether intended to be consumed on the seller’s premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper or by some other name, and without regard to the manner, time or place of service.

(3) “Eating and/or drinking establishments” mean and include restaurants, bars, taverns, lounges, cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment stands, fish and chip places, fried chicken places, pizzerias, food and drink concessions, vending machines, or similar facilities in amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial plants, race tracks, shore resorts or other locations, lunch carts, mobile canteens and other similar vehicles, and other like places of business which furnish or provide facilities for immediate consumption of food at tables, chairs or counters or from trays, plates, cups or other tableware or in parking facilities provided primarily for the use of patrons in consuming products purchased at the location.

Ordinarily, eating establishments do not mean and include food stores and supermarkets.

Retailers selling prepared foods in bulk either in customer-furnished containers or in the seller’s containers, for example “Soup and Sauce” establishments, are deemed to be selling prepared foods ordinarily for immediate consumption and as such are considered eating establishments.

This local sales/use tax shall be administered and collected by the division of taxation and unless provided to the contrary in this chapter, all of the administration, collection, and other provisions of chapters 18 and 19 of this article apply.

SECTION 10. Section 34-13-7 of the General Laws in Chapter 34-13 entitled "Recording Of Instruments" is hereby amended to read as follows:

34-13-7. General recording fees. --  (a) The fees to the recording officers for recording the following described instruments relating to real estate shall be as follows:

Warranty deed                                      $25.00 $80.00

Quitclaim deed                                      25.00    80.00

Deed of executor, administrator,

trustee, conservator, receiver

or commissioner                                    25.00    80.00

Mortgage                                              25.00    60.00

Partial release of mortgage                    10.00    45.00

Assignment of mortgage                        10.00    45.00

Foreclosure deed under power of sale

with affidavit                                         25.00    80.00

Lease                                                   25.00    60.00

General assignment                               10.00    45.00

Discharge of mortgage                          10.00    45.00

Discharge of attachment or execution     4.00      45.00

Any other instrument not otherwise

expressly provided for by statute            10.00    45.00

Lien - Federal tax                                  4.00      7.25

Lien - Federal tax, discharge of              4.00      7.25

Maps, plats, surveys, drawings (not

attached to or a part of another

recordable instrument)                           30.00    45.00

Bill of sale                                             25.00    45.00

Power of attorney                                 10.00    45.00

Lis pendens                                           10.00    80.00

(b) The recording officers shall be allowed to charge a rate of one dollar ($1.00) for each additional page or fraction over.

(c) Ten percent (10%) of the recording fees provided for in this section shall be utilized by each city or town for the purposes of document preservation and technological upgrades.

SECTION 11. Sections 3-7-3, 3-7-7, 3-7-7.1, 3-7-8, 3-7-11 and 3-7-13 of the General Laws in Chapter 3-7 entitled "Retail Licenses" are hereby amended to read as follows:

3-7-3. Class A license -- Towns and cities of 10,000 or more. -- (a) In cities and towns having a population of ten thousand (10,000) or more inhabitants, a retailer's Class A license authorizes the holder to keep for sale and to sell, at the place described, beverages at retail and to deliver the beverages in a sealed package or container, which package or container shall not be opened nor its contents consumed on the premises where sold. The holder of a Class A license, if other than a person entitled to retail, compound, and dispense medicines and poisons, shall not on the licensed premises engage in any other business, keep for sale or sell any goods, wares, merchandise or any other article or thing except the beverages authorized under this license and nonalcoholic beverages. This provision shall not apply to the sale or selling of cigarettes, newspapers, cigars, cigarette lighters, gift bags, prepackaged peanuts, pretzels, chips, olives, onions, cherries, hot stuffed cherry peppers, Slim Jims and similar pre-packaged dried meat products, pickled eggs, popcorn, pre-packaged candy, styrofoam cooler and ice, nor to home bar accessories such as pourers, glasses, cork screws, stirrers, flasks, jiggers, wine racks, ice crushers, bottle openers, can openers and any other items of like nature which may, by suitable regulation of the director of business regulation, be authorized to be sold. This section shall not apply to promotional free goods which are subject to approval by the director. In the city of Newport this license may be issued to any person, firm or corporation who are owners of bona fide markets for the sale of alcoholic beverages in conjunction with and in addition to the sale of meats or groceries in those bona fide markets. A person, firm or corporation in that city may obtain a limited Class A license to sell beer, lager and ale on the same premises as other goods, wares, merchandise and articles are sold. No Class A license is granted for any premises unless the premises constitute a separate store, the entrance or entrances to which shall be exclusively from the street or streets or arcade. This provision shall not apply to any person, firm or corporation in the city of Newport who are owners of bona fide markets for the sale of alcoholic beverages in conjunction with and in addition to the sale of meats or groceries in those bona fide markets and as long as the market is owned and operated by the mother, father, son, daughter, brother or sister of the original licensee, but not otherwise.

 (b) The premises shall have opaque walls which shall completely partition and sever the premises from any adjoining market, concession or business. This provision shall not be construed to limit the powers of the department to issue licenses on condition nor to make rules and regulations as provided. The annual fee for a Class A license is five hundred one thousand dollars ($500) ($1,000) prorated to the year ending December 1st in every calendar year.

 (c) Any licenses issued under the provisions of this section prior to May 8, 1964 remains in full force and effect.

3-7-7. Class B license. -- (a) (1) A retailer's Class B license is issued only to a licensed bona fide tavern keeper or victualer whose tavern or victualing house may be open for business and regularly patronized at least from nine o'clock (9:00) a.m. to seven o'clock (7:00) p.m. provided no beverage is sold or served after one o'clock (1:00) a.m., nor before six o'clock (6:00) a.m. Local licensing boards may fix an earlier closing time within their jurisdiction, at their discretion. The East Greenwich town council may, in its discretion, issue full and limited Class B licenses which may not be transferred, but which shall revert to the town of East Greenwich if not renewed by the holder.

 (2) The license authorizes the holder to keep for sale and sell beverages including beer in cans, at retail at the place described and to deliver them for consumption on the premises or place where sold, but only at tables or a lunch bar where food is served. It also authorizes the charging of a cover, minimum, or door charge. The amount of the cover, or minimum, or door charge is posted at the entrance of the establishments in a prominent place.

 (3) Holders of licenses are not permitted to hold dances within the licensed premises, unless proper permits have been properly obtained from the local licensing authorities.

 (4) Any holder of a Class B license may, upon the approval of the local licensing board and for the additional payment of two five hundred dollars ($200) ($500), open for business at twelve o'clock (12:00) p.m. and on Fridays and Saturdays and the night before legal state holidays may close at two o'clock (2:00) a.m. All requests for a two o'clock (2:00) a.m. license shall be advertised by the local licensing board in a newspaper having a circulation in the county where the establishment applying for the license is located.

 (5) A holder of a retailer's Class B license is allowed to erect signs advertising his or her business and products sold on the premises, including neon signs, and is allowed to light those signs during all lawful business hours, including Sundays and holidays.

 (b) The annual license fee for a tavern keeper shall be four hundred dollars ($400) to one two thousand five hundred dollars ($1,500) ($2,000), and for a victualer the license fee shall be four hundred dollars ($400) to one two thousand dollars ($1,000) ($2,000). In towns with a population of less than two thousand five hundred (2,500) inhabitants, as determined by the last census taken under the authority of the United States or the state, the fee for each retailer's Class B license shall be determined by the town council, but shall in no case be less than three hundred dollars ($300) annually. If the applicant requests it in his or her application, any retailer's Class B license may be issued limiting the sale of beverages on the licensed premises to malt and vinous beverages containing not more than twenty percent (20%) alcohol by volume, and the fee for that limited Class B license shall be two one thousand five hundred dollars ($200) ($1,500) annually. The fee for any Class B license shall in each case be prorated to the year ending December 1 in every calendar year.

3-7-7.1. Class B-H license. -- (a) A retailer's Class B-H license shall be issued only to a licensed hotel. The license authorizes the holder to keep for sale and sell beverages in containers of a minimum capacity of fifty milliliters (50 ml.) or one and seven tenths ounces (1.7 oz). The beverages shall be sold and served only in the room of a registered hotel guest. The beverages may be served in the hotel room at least from nine o'clock (9:00) a.m. to seven o'clock (7:00) p.m. No beverages shall be served in the hotel room after one o'clock (1:00) a.m., nor before six o'clock (6:00) a.m. The beverages may be sold only in the room of the registered hotel guest at any time.

 (b) A Class B and B-H liquor license may be issued for the same licensed hotel, notwithstanding the provisions of section 3-5-9.

 (c) The annual fee for this license shall be one five hundred dollars ($100.00) ($500).

3-7-8. Class C license. -- (a) A retailer's Class C license authorizes the holder of the license to keep for sale and to sell beverages at retail at the place described in the license and to deliver those beverages for consumption on the premises where sold. No beverages shall be sold or served after twelve o'clock (12:00) midnight nor before six o'clock (6:00) a.m. Local license boards in the several cities and towns may fix an earlier closing time within their discretion. The license authorizes the holder to keep for sale and sell beverages, including beer in cans, at retail at the place described in the license and to deliver those beverages for consumption on the premises.

 (b) The license authorizes the holder to sell pre-packaged foods prepared off the premises with beverages but prohibits the preparation and serving of foods cooked on the premises. The holder of the license may serve with beverages and without charge popcorn, crackers, bread, pretzels, sausage of any type, pickles, sardines, smoked herring, lupino beans, and potato chips. No food shall be cooked on the premises but pre-packaged foods prepared and cooked off the premises and purchased by the holder from a supplier may be warmed and sold on the premises in their original packaging, and all foods shall be covered in accordance with the regulations of the state department of health. The annual fee for the license is four hundred dollars ($400) to six eight hundred dollars ($600) ($800), prorated to the year ending December 1 in every calendar year.

 (c) The town councils of the towns of Coventry and South Kingstown are authorized to prohibit by ordinance the issuance of Class C licenses. Upon prohibiting Class C licenses, the license board of the towns of Coventry and South Kingstown shall issue Class B licenses to the holder of all Class C licenses in those towns. The Class B licenses may be issued to the holders of Class C licenses notwithstanding any requirements of section 3-7-7. The holders of Class C licenses shall have the full privileges of a Class B license and shall pay the annual fee provided for Class B licenses.

 (d) Notwithstanding any prohibitions on the preparation and serving of foods cooked on the premises contained in paragraph (b) herein, the holders of Class C licenses in the city of Newport are authorized to prepare and serve foods cooked on the premises. The holders of Class C licenses in the city of Newport shall be deemed to be victualling houses for purposes of section 3-8-1.

3-7-11. Class D license. -- A retailer's Class D license shall be issued only to a club or to any corporation organized prior to the year 1900 for purposes similar to those set forth in chapter 6 of title 7, and which has held a Class D license for at least ten (10) consecutive years prior to July 1, 1993, and authorizes the holder of the license to keep for sale and to sell beverages at the place described at retail and to deliver those beverages for consumption on the premises where sold. The license authorizes the holder of the license to keep for sale and sell beverages, including beer in cans, at retail at the place described and to deliver those beverages for consumption on the premises. If a club is not the owner or, for the period of two (2) years before the filing of its application for a license, the lessee of the premises where its principal activities are carried on or of kitchen and dining room equipment in the club premises reasonably adequate to supply its members and guests with food, then the license shall authorize the holder of the license to keep for sale and sell malt and vinous beverages, but not beverages consisting in whole or in part of alcohol produced by distillation. Notwithstanding the provisions of this section, with the permission of the local authority, the licensee may supply food and beverage to the public for consumption on the premises at times determined by the holder of the license. The annual fee for the license to sell beverages shall be not more than four eight hundred dollars ($400) ($800) and for the license to sell malt and vinous beverages only shall be not more than two four hundred dollars ($200) ($400), in each case prorated to the year ending December 1 in every calendar year determined by each local municipality.

3-7-13. Class E license. -- A retailer's Class E license authorizes a person entitled to retail, compound, and dispense medicines and poisons to keep for sale and to sell at the place described in the license, beverages not to exceed one quart each for medicinal purposes and only upon the prescription of a licensed practicing physician. The license shall not authorize the doing of any act in violation of any law of the United States. The annual fee for the license is ten two hundred dollars ($10.00) ($200).

SECTION 12. Chapter 39-3 of the General Laws entitled  "Regulatory Powers of Administration" is hereby amended by adding thereto the following section:

39-3-11.3. Providence water supply board transfer. – Notwithstanding any other provisions of law, the Providence Water Supply Board shall transfer to the general fund of the city of Providence and an amount equal to five percent (5%) per annum times the annual gross revenues of the Providence Water Supply Board for the fiscal year ending June 30, 2004, and for the next two (2) succeeding fiscal years.  This transfer shall not be included as part of the Providence Water Supply Board's rates approved by a final unappealable order of the Public Utilities Commission for same three (3) fiscal years.

SECTION 13. Section 46-15.3-21 of the General Laws in Chapter 46-15.3 entitled "Public Drinking Water Supply System Protection" is hereby amended to read as follows:

46-15.3-21. Fees, rates and charges. -- (a) The fees, rates, and charges for drinking water are a mandatory component of water supply system management.

 (b) The following factors shall be considered in setting fees, rates, and charges:

 (1) Recovery of all capital and operating costs, fixed and variable of production, conservation, use, management, protection, obtaining, development, procuring, and/or transporting water, and its sale at wholesale or retail;

 (2) Marginal cost pricing;

 (3) Emergency and drought period surcharges;

 (4) Seasonal price structures;

 (5) Difference in costs based upon different points of delivery;

 (6) The effect of fees, rates, and charges on use of water and, where applicable, on wastewater costs and charges;

 (7) The effect of reducing non-account water to levels consistent with stated goals;

 (8) Preparing, maintaining and implementing water supply system management programs.; and

(9) Notwithstanding any other provisions of law, the Providence Water Supply Board shall transfer to the general fund of the city of Providence an amount equal to five percent (5%) per annum times the annual gross revenues of the Providence Water Supply Board for the fiscal year ending June 30, 2004, and for the next two (2) succeeding fiscal years.  This transfer shall not be included as part of the Providence Water Supply Board's rates approved by a final unappealable order of the Public Utilities Commission for same three (3) fiscal years.

 (c) Notwithstanding the provisions of sections 39-2-2 and 39-2-5, all rates and charges made by water suppliers which decline as quantity used increased are hereby declared to be no longer conducive to sound water supply system management designed to properly conserve, develop, utilize, and protect this finite natural resource. The public utilities commission may order rates for suppliers of water which either do not vary with quantities used or when there is evidence of increasing costs to either the utility or to society, rates which increase as the quantity used increases. If the commission finds that changing rates to comply with this section will cause a hardship to a class of customers, the commission may order that rates for that class of customers be changed to comply with this section over a period of time not to exceed five (5) years.

 (d) Notwithstanding the provisions of sections 39-2-2 and 39-2-5, the public utilities commission may order a reduction in rates consistent with the amount by which a supplier exceeds the stated goals for non-account water. Non-account water shall be defined as the difference between the metered supply and the metered consumption for a specific period including an allowance for firefighting. No estimates for non-metered usage, except for the firefighting allowance, shall be included in the calculation of accounted for water.

SECTION 14. Section 44-51-3 of the General Laws in Chapter 44-51 entitled "Nursing Facility Provider Assessment Act" is hereby amended to read as follows:

44-51-3. Imposition of assessment -- Nursing facilities. -- (a) For purposes of this section, a nursing facility means a person or governmental unit licensed in accordance with chapter 17 of title 23 to establish, maintain, and operate a nursing facility.

 (b) An assessment is imposed upon the gross patient revenue received by every nursing facility in each month beginning October 1, 1995 2003 at a rate of three and three-quarters percent (3.75%) six percent (6%) for services provided on or after October 1, 1995 2003. Every provider shall pay the monthly assessment no later than the twenty-fifth day of each month following the month of receipt of gross patient revenue.

 (c) The assessment imposed by this section shall be repealed on the effective date of the repeal or a restricted amendment of those provisions of the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1991 (Public Law 102-234) that permit federal financial participation to match state funds generated by taxes.

SECTION 15. Sections 1, 5, 8, 11 and 12 of this article shall take effect upon passage. Section 7 of this article shall take effect as of June 1, 2003. Sections 6, 13 and 14 of this article shall take effect as of July 1, 2003. Section 9 of this article shall take effect on August 1, 2003. Section 10 of this article shall take effect on January 1, 2004. Sections 2, 3 and 4 of this article shall take effect upon passage and shall apply to the tax year beginning on or after January 1, 2003.

ARTICLE 8

RELATING TO SUPERIOR COURT FEES

SECTION 1. Section 9-29-18 of the General Laws in Chapter 9-29 entitled "Fees" is hereby amended to read as follows:

9-29-18. Superior court fees. --  (a) The superior court shall be allowed the following fees in full to be taxed in the bill of costs in every civil action:

(1) For entry of every civil action, or petition .............. $135.00  $160.00

(2) For every writ of execution ................................ $50.00

(3) For the issuance of every citation ........................ $25.00

(b) In addition to the fees set forth herein, a surcharge shall be placed on all filing fees.

(c) Provided, that ten dollars ($10.00) of the fee for the entry of every civil action or

 petition shall be forwarded to Rhode Island Legal Services.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 9

RELATING TO EDUCATION AID

SECTION 1.  Sections 16-7-23, 16-7-39, 16-7-40, and 16-7-41 of the General Laws in Chapter 16-7 entitled “Foundation Level School Support” are hereby amended to read as follows:

16-7-23.  Community requirements – Adequate minimum budget provision. – (a) The school committee's budget provisions of each community for current expenditures in each budget year shall provide for an amount from all sources sufficient to support the basic program and all other approved programs shared by the state. Each community shall contribute local funds to its school committee in an amount not less than its local contribution for schools in the previous fiscal year: provided, however, that for FY 2005, that amount shall not be less than provided for FY 2003.  Calculation of the annual local contribution shall not include Medicaid revenues received by the municipality or district pursuant to chapter 8 of title 40. A community which has a decrease in enrollment may compute maintenance of effort on a per pupil rather than on an aggregate basis when determining its local contribution; furthermore, a community which experiences a nonrecurring expenditure for its schools may deduct the nonrecurring expenditure in computing its maintenance of effort. The deduction of nonrecurring expenditures shall be with the approval of the commissioner. The courts of this state shall enforce this section by writ of mandamus.

   (b) Whenever any state funds are appropriated for educational purposes, the funds shall be used for educational purposes only and all state funds appropriated for educational purposes must be used to supplement any and all money allocated by a city or town for educational purposes and, in no event, shall state funds be used to supplant, directly or indirectly, any money allocated by a city or town for educational purposes. All state funds shall be appropriated by the municipality to the school committee for educational purposes in the same fiscal year in which they are appropriated at the state level even if the municipality has already adopted a school budget. All state and local funds unexpended by the end of the fiscal year of appropriation shall remain a surplus of the school committee and shall not revert to the municipality. Any surplus of state or local funds appropriated for educational purposes shall not in any respect affect the requirement that each community contribute local funds in an amount not less than its local contribution for schools in the previous fiscal year, subject to section subsection (a), and shall not in any event be deducted from the amount of the local appropriation required to meet the maintenance of effort provision in any given year.

16-7-39.  Computation of school housing aid ratio. -- For each community, the percent of state aid for school housing costs shall be computed in the following manner:

(1) For projects approved prior to July 1, 1981: from (i) the number of resident pupils in average daily membership in grades one through twelve (12) for the state fiscal year next preceding that in which aid is to be paid multiplied by three hundred and fifty dollars ($350), deduct (ii) the yield of a thirteen dollars and twenty-eight cents ($13.28) tax per thousand dollars of equalized weighted assessed valuation, and (iii) the ratio that the resultant figure bears to the computation in (i) shall be the school housing aid ratio; provided, however, that in no case shall the ratio be less than thirty percent (30%) each year.

(2) For projects approved after July 1, 1981, the school housing share ratio shall be calculated in the following manner: (i) the adjusted equalized weighted assessed valuation for the district is divided by the resident average daily membership for the district (grades twelve (12) and below); (ii) the adjusted equalized weighted assessed valuation for the state is divided by the resident average daily membership for the state (grades twelve (12) and below); (i) is then divided by (ii) and the resultant ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the approximate average district share of school support; the resulting product is then subtracted from one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the ratio be less than thirty percent (30%). The resident average daily membership shall be determined in accordance with § 16-7-22(1).

16-7-40.  Increased school housing ratio for regional schools – Energy conservation – Access for people with disabilities – Asbestos removal projects. -- (a1) In the case of regional school districts, the school housing aid ratio shall be increased by two percent (2%) for each grade so consolidated.

(2) Regional school districts undertaking renovation project(s) shall receive an increased share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share ratio calculated in § 16-7-39 and this subsection.

(b) In the case of projects undertaken by regionalized and/or non-regionalized school districts specifically for the purposes of energy conservation, access for people with disabilities, and/or asbestos removal, the school housing aid share ratio shall be increased by four percent (4%) for these specific projects only, in the calculation of school housing aid. The increased share ratio shall continue to be applied for as log as the project(s) receive state housing aid. In order to qualify for the increased share ratio, seventy-five percent (75%) of the project costs must be specifically directed to either energy conservation, access for people with disabilities, and/or asbestos removal or any combination of these projects. The board of regents for elementary and secondary education shall promulgate rules and regulations for the administration and operation of this section.

(c) Upon the transfer of ownership from the state to the respective cities and towns of the regional career and technical center buildings located in Cranston, East Providence, Newport, Providence, Warwick, Woonsocket and the Chariho regional school district, the school housing aid share ratio shall be increased by four percent (4%) for the renovation and/or  repair of these buildings.  To qualify for the increased share ratio, as defined in § 16-7-39, renovation and repair projects must be submitted for approval through the necessity of school construction process prior to the end of the second full fiscal year following the transfer of ownership and assumption of local care and control of the building.  Only projects at regional career and technical centers that have full program approval from the department of elementary and secondary education shall be eligible for the increased share ratio.  The increased share ratio shall continue to be applied for as long as the renovation and/or repair project receives school housing aid.

16-7-41.  Computation of school housing aid. -- (a) In each fiscal year the state shall pay to each community a grant to be applied to the cost of school housing equal to the sum of the following computations:

(1) For projects approved prior to July 1, 1981: one-twentieth ( 1/20) of the cost of each new school housing project certified to the commissioner of elementary and secondary education not later than January 15 of the fiscal year next preceding and an equal amount for each of the next nineteen (19) years times the school housing aid ratio.

(2) For projects approved after July 1, 1981: the  The cost of each new school housing project certified to the commissioner of elementary and secondary education not later than January 15 July 15 of the fiscal year next preceding shall be divided by the actual number of years of the bond issued by the local community in support of the specific project, times the school housing aid ratio. If a community fails to specify or identify the appropriate reimbursement schedule, the commissioner of elementary and secondary education may at his or her discretion set up to a five (5) year reimbursement cycle for projects under five hundred thousand dollars ($500,000); up to ten (10) years for projects up to three million dollars ($3,000,000); and up to twenty (20) years for projects over three million dollars ($3,000,000).

(3) Seventy-five percent (75%) of the remainder, if any, of the total costs to the community for the payment of school housing commitments after the deduction of payments due from computations in subsections (a)(1) and (2) of this section including payments for interest under subsections (a)(1) and (2) of this section on bonds issued after July 1, 1988, and the yield of a tax of three dollars ($3.00) per thousand on adjusted equalized weighted assessed valuation for the reference year commitments made prior to July 1, 1981, for periods of less than twenty (20) years, shall be prorated over a twenty (20) year period commencing with the date of the first payment of the commitment.

(b) Commitments made after July 1, 1981, Aid shall be provided state aid for the same period as the life of the bonds issued in support of the project.

(c) Implementation of calculations for housing aid payments for projects approved after July 1, 1981, Payments shall be made in accordance with § 16-7-40 and this section.

SECTION 2.  Chapter 16-7 of the General Laws entitled “Foundation Level School Support” is hereby amended by adding thereto the following section:

16-7-41.1.  Eligibility for Reimbursement. -- School districts, not municipalities, may apply for and obtain approval for a project under the necessity of school construction process set forth in the regulations of the board of regents for elementary and secondary education.  Such approval will remain valid until June 30 of the third fiscal year following the fiscal year in which the board of regents for elementary and secondary education’s approval is granted.  Only those projects undertaken at school facilities under the care and control of the school committee and located on school property may qualify for reimbursement under §16-7-35 to 16-7-47.  Facilities with combined school and municipal uses or facilities that are operated jointly with any other profit or non-profit agency do not qualify for reimbursement under §16-7-35 to 16-7-47.  Projects completed by June 30 of a fiscal year are eligible for reimbursement in the following fiscal year.  A project for new school housing or additional housing shall be deemed to be completed when the work has been officially accepted by the school committee or when the housing is occupied for its intended use by the school committee, whichever is earlier.

SECTION 3.  Section 16-7-42 of the General Laws in Chapter 16-7 entitled “Foundation Level School Support” is hereby amended to read as follows:

16-7-42.  Federal aid for school housing projects – Effect. – Other aid for school housing projects – Effect. -- In the computations of sections 16-7-35 to 16-7-47, only that portion of the cost of school housing projects for which no aid has been received from the federal government under the provision of any present or subsequent federal legislation shall be used.  In the computations of  §16-7-35 to 16-7-47, the cost of a school housing project shall be reduced by the amount of federal aid and other private and public funding that is applied to the project.

SECTION 4.  Section 16-7-43 of the General Laws in Chapter 16-7 entitled “Foundation Level School Support” is hereby repealed.

16-7-43. Gifts for school housing projects – Gifts to the community spent for school housing projects shall be included in the computations of §§16-7-35 to 16-7-47; provided, however, that the gifts shall not be included in the computation under subsections (a)(2) and (3) of §16-7-41.

SECTION 5.  Section 16-7-44 of the General Laws in Chapter 16-7 entitled “Foundation Level School Support” is hereby amended to read as follows:

16-7-44.  School housing project costs. -- School housing project costs, the date of completion of school housing projects, and the applicable amount of school housing project cost commitments shall be in accordance with the regulations of the commissioner of elementary and secondary education and the provisions of §§ 16-7-35 to 16-7-47; provided, however, that school housing project costs shall include the purchase of sites, buildings, and equipment, the construction of buildings, and additions or renovations of existing buildings and/or facilities. School housing project costs shall include the cost of interest payment on any bond issued after July 1, 1988, provided that such bond is approved by the voters on or before June 30, 2003 or issued by a municipal public building authority or by the appropriate approving authority on or before June 30, 2003. For those projects approved after June 30, 2003, interest payments may only be included in project costs provided that the bonds for these projects are issued through the Rhode Island Health, Education and Building Corporation. School housing project costs shall exclude: (1) any bond issuance costs incurred by the municipality or regional school district; (2) demolition costs for buildings, facilities, or sites deemed surplus by the school committee; and (3) restrictions pursuant to § 6-7-44.1 below.  A building, facility, or site is declared surplus by a school committee when the committee no longer has such building, facility, or site under its direct care and control and transfers control to the municipality, § 16-2-15). The board of regents for elementary and secondary education will promulgate rules and regulations for the administration of this section. These rules and regulations may provide for the use of lease revenue bonds, financial capital leases, or capital reserve funding, and similar financial instruments to finance school housing provided that the net interest costs shall be less than what a general obligation bond would be, and further provided that the term of any bond, or capital lease or similar instrument shall not be longer than the useful life of the project and these instruments are subject to the public review and voter approval otherwise required by law for the issuance of bonds, or capital leases, or similar instruments. Cities or towns issuing bonds, notes, or leases , or other evidences of indebtedness issued by municipal public buildings authority for the benefit of a local community pursuant to chapter 50 of title 45 shall not require voter approval. For purposes of this section and § 16-7-41, "bonds issued by a local community" includes bonds, notes, leases, or other evidences of indebtedness issued by municipal public buildings authority for the benefit of a local community pursuant to chapter 50 of title 45; provided, however, that these bonds, notes, leases, or other evidences of indebtedness shall not be subject to the interest rate limitation of this section.

SECTION 6.  Chapter 16-7 of the General Laws entitled “Foundation Level School Support” is hereby amended by adding thereto the following section:

16-7-44.1.  Program restrictions. -- Housing aid shall not be provided for the purchase of furniture, fixtures and equipment except in the case of a project to construct a new school or new school addition that is also supported by a general obligation or lease revenue bond.  Housing aid shall not be provided for projects supported by capital lease agreements that: (1) are not lease purchase agreements; (2) do not demonstrate a direct benefit to the school nor are located on school property; and (3) do not exclude all non-capital costs such as maintenance costs prior to the request for reimbursement.

SECTION 7.  Sections 16-7.1-5,  16-7.1-8, 16-7.1-10, and 16-7.1-15 of the General Laws in Chapter 16-7.1 entitled “The Rhode Island Student Investment Initiative” are hereby amended to read as follows:

16-7.1-5.  Intervention and support for failing schools. -- (a) The board of regents shall adopt a series of progressive support and intervention strategies consistent with the Comprehensive Education Strategy and the principles of the "School Accountability for Learning and Teaching" (SALT) of the board of regents for those schools and school districts that continue to fall short of performance goals outlined in the district strategic plans. These strategies shall initially focus on: (1) technical assistance in improvement planning, curriculum alignment, student assessment, instruction, and family and community involvement; (2) policy support; (3) resource oversight to assess and recommend that each school has adequate resources necessary to meet performance goal; and (4) creating supportive partnerships with education institutions, business, governmental, or other appropriate nonprofit agencies. If after a three (3) year period of support there has not been improvement in the education of students as determined by objective criteria to be developed by the board of regents, then there shall be progressive levels of control by the department of elementary and secondary education over the school and/or district budget, program, and/or personnel. This control by the department of elementary and secondary education may be exercised in collaboration with the school district and the municipality. If further needed, the school shall be reconstituted. Reconstitution responsibility is delegated to the board of regents and may range from restructuring the school's governance, budget, program, personnel, and/or may include decisions regarding the continued operation of the school. The board of regents shall assess the district's capacity and may recommend the provision of additional district, municipal and/or state resources. If a school or school district is under the board of regents' control as a result of actions taken by the board pursuant to this section, the local school committee shall be responsible for funding that school or school district at the same level as in the prior academic year increased by the same percentage as the state total of school aid is increased.

(b) For FY 2003 2004, the department shall dedicate one hundred thousand dollars ($100,000) from funds appropriated to support progressive support and intervention and SALT visits to support the Rhode island Consortium for Instructional Leadership and Training. This consortium is engaged in training school leaders to be more effective instructional leaders in the standards based instruction environment.

16-7.1-8.  Student equity investment fund. -- The general assembly recognizes the need to improve fourth grade performances in mathematics, reading, and writing. Therefore, the general assembly establishes the Student Equity Investment Fund to target students identified as those requiring additional educational services. The general assembly shall annually appropriate some sum and distribute it based on each district's proportion of resident children eligible for USDA reimbursable school meals relative to the total number of eligible students statewide. For the purposes of this section, the date as of eligibility for USDA reimbursable meals shall be determined by the June report of the reference year as defined in § 16-7-16. These resources shall be used to close student performance gaps in accordance with the district's strategic plan pursuant to § 16-7.1-2. Beginning in FY 2003, the commissioner of elementary and secondary education may require a district to use up to five percent (5%) of the funds allocated by this section to increase student and school performance. The five percent (5%) set aside funds shall only be spent with the prior approval of the commissioner of elementary and secondary education.

16-7.1-10.  Professional development investment fund. -- (a) In order to continue developing the skills of Rhode Island's teachers, administrators and staff, the general assembly establishes a Professional Development Investment Fund. The general assembly shall annually appropriate some sum and distribute it based on a pupil-teacher ratio that shall be adjusted annually by the commissioner of elementary and secondary education. School districts may use funds received under this category of education aid to replace up to, but no more than, fifty percent (50%) of the amount the school district spent for professional development programs in the previous fiscal year. The expenditure of these funds shall be determined by a committee at each school consisting of the school principal, two (2) teachers selected by the teaching staff of the school, and two (2) parents of students attending the school. Schools that enroll students in the early grades (kindergarten through grade three (3)) must expend these funds on the development of scientific research based, as described in the No Child Left Behind Act of 2001, Title 1, Part B, Section 1208 [20 U.S.C. § 6368], reading instruction to improve students reading performance. Collaborative programs between schools are encouraged. These resources shall be used to close student performance gaps in accordance with the school's and district's strategic plan pursuant to § 16-7.1-2. Additional funds shall be allocated to the department of elementary and secondary education to support teacher and administrator professional development in all districts, including, but not limited to:

 (1) Supporting mentoring systems;

 (2) Providing school districts with program support to assist teachers in local school districts to improve reading instruction and enhance the integration of reading throughout the curriculum with the goal of improving student performance to high standards;

 (3) Support for the design and implementation of a system for the training of school leaders leadership development for the teacher to assume leadership roles or ultimately prepare for administrator;

(4) Development of a plan for formal training of school leaders in standards based instruction, school improvement planning, effective use of data in the decision-making process, community involvement and creation of governance structures;

(4) (5) Support for national board certification of teachers and grants for coordination and support of school based teacher professional development; and

(5) (6) The practice of scientific research based reading instruction to improve reading performance.

(b) In FY 2003, the additional funds allocated to the department of elementary and secondary education pursuant to this section shall be used only to support the activities described in subdivisions (a)(2) and (a)(5) of this section.

(c) The department shall continue to use resources allocated within its operating budget to support National Board Certification activities and for FY 2003 that amount shall be ninety thousand dollars ($90,000).

(d) (c) Out of the funds appropriated by the general assembly for professional development in subsection (a) of this section, twenty-five percent (25%) shall be set aside for district-wide professional development activities. The expenditure of this district-wide professional development set-aside shall be determined by a committee in each district consisting of the superintendent or his or her designee, three (3) teachers appointed by the collective bargaining agent, and one member of the Rhode Island department of elementary and secondary education field service team servicing that school district designated by the commissioner of elementary and secondary education. The expenditure must be aligned with the district strategic plan as well as ongoing professional development programs approved by the department of elementary and secondary education. Collaborative programs between school districts are permissible.

16-7.1-15.  The Rhode Island student investment initiative. -- (a) Each locally or regionally operated school district shall receive as a base the same amount of school aid as each district received in fiscal year 1997-1998,. For FY 2003, that base shall be adjusted to reflect the increases or decreases in aid enacted for FY 2000, FY 2001, and FY 2002 to meet the minimum and maximum funding levels established for FY 2000, through FY 2001 and FY 2002 FY 2003. Each school district shall also receive school aid through each investment fund for which that district qualifies pursuant to §§ 16-7.1-6, 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11, 16-7.1-12, 16-7.1-16 and 16-7.1-19. These sums shall be in addition to the base amount described in this section.  For FY 2004 total school aid distributed under the investment funds enumerated above shall constitute not less than a one percent (1.0%) increase in aid received in FY 2003 under sections 16-7.1-6, 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11, 16-7.1-12, 16-7.1-15(d), 16-7.1-16, and 16-7.1-19. The total school aid distributed under this section in FY 2002 shall constitute not less than a three and one-half percent (3.5%) increase in the aid distributed to the school district under this section in FY 2001 and each district shall receive the increase in aid necessary to meet this minimum funding level. Additionally, for FY 2002, any community with a tax equity index below 1.0 as calculated pursuant to § 16-7.1-6 shall receive not less than a seven percent (7%) increase in aid distributed to the school district under this section in FY 2001. For FY 2003, the total school aid distributed under the investment funds enumerated above shall constitute not less than a one percent (1.0%) percent increase in aid received in FY 2002. Calculation and distribution of education aid under §§ 16-5-31, 16-5-32, 16-7-20, 16-7-20.5, 16-7-34.2, 16-7-34.3, 16-24-6, 16-54-4, and 16-67-4 is hereby suspended. The funding of the purposes and activities of chapter 67 of this title, the Rhode Island Literacy and Dropout Prevention Act of 1967, shall be the same amount of the base amount of each district funded for that purpose in fiscal year 1997-1998. In addition each district shall expend three percent (3%) of its student equity and early childhood funds under the provisions of chapter 67 of this title.

(b) Funding for full day kindergarten programs in accordance with § 16-7.1-11.1 shall be in addition to funding received under this section.

(c) Funding distributed under § 16-77.1-2(b) and § 16-64-1.1 shall be in addition to funding distributed under this section.

(d) There shall be an appropriation to ensure that total aid distributed to communities in FY 2003 2004 under this section and §§ 16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b) shall be at least a one and three quarter percent (1.75%) increase over aid received in FY 2003. is not less than the amount proposed by the governor for FY 2003 and shall be at least a two and one-half percent (2.5%) increase over aid received in FY 2002.

(e) Children with disabilities. (1) Based on its review of special education within the context of Rhode Island school reform, the general assembly recommends addressing the needs of all children and preventing disability through scientific research based, as described in the No Child Left Behind Act of 2001, Title 1, Part B, Section 1208 [20 U.S.C. § 6368], reading instruction and the development of Personal Literacy Programs for students in the early grades performing below grade level in reading and implement a system of student accountability that will enable the state to track individual students over time. Additionally, the department of elementary and secondary education must provide districts with rigorous criteria and procedures for identifying students with learning disabilities and speech/language impairments. Additional study is required of factors that influence programming for students with low incidence disabilities; those with disabilities that severely compromise life functions; and programming for students with disabilities through urban special education. Alternatives for funding special education require examination.

 (2) All departments and agencies of the state shall furnish any advice and information, documentary and otherwise, to the general assembly and its agents that is deemed necessary or desirable by the study to facilitate the purposes of this section.

 SECTION 8. Section 16-7.1-19 of the General Laws in Chapter 16-7.1 entitled "The Rhode Island Student Investment Initiative" is hereby amended to read as follows:

16-7.1-19. Vocational technical equity fund. -- The general assembly recognizes the need to support the academic instruction component of vocational education for students enrolled in career and technical education programs. To accomplish this, the general assembly shall appropriate some sum per student for each student who attends a locally operated career and technical center based on the enrollments reported to the department of elementary and secondary education for the previous academic year. reference year as defined in section 16-7-16. Funding for all students enrolled in the locally operated career and technical centers shall be implemented for FY 2001 and FY 2002 only. For FY 2001, FY 2002 and FY 2003, this tThe sum shall be five hundred dollars ($500) per student. Funding under this section will be limited to those students enrolled in programs that are part of the state certified career and technical education system as approved by the department of elementary and secondary education.

SECTION 9. The department of elementary and secondary education is authorized to and shall conduct a study of the cost of building new schools and additions based on the last five (5) years of completed and planned construction projects. The study shall collect and analyze data from projects to determine the feasibility of implementing an appropriate cost per square foot cap on new construction projects. The study shall also consider the possibility of implementing parameters for cost efficient materials and procedures, and making accurate enrollment projections in support of new schools and additions. Private architectural firms with experience in building and renovating schools in the State of Rhode Island are invited to submit information and provide guidance to the department in the completion of this study.

The results of the study shall be submitted to the general assembly by January 1, 2004 with copies to the president of the senate, the speaker of the house, the chairperson of the senate finance committee, the chairperson of the house finance committee, the senate fiscal advisor and the house fiscal advisor.

SECTION 10. The department of administration shall conduct a cost/benefit analysis of a statewide teacher contract. It shall report its findings to the Rhode Island general assembly by March 1, 2004.

SECTION 11. Sections 16-23-2, 16-23-3 and 16-23-3.1 of the General Laws in Chapter 16-23 entitled "Textbooks" are hereby amended to read as follows:

16-23-2. Loan of textbooks. -- (a) The school committee of every community as it is defined in section 16-7-16 shall furnish upon request, at the expense of the community, textbooks to all students in grades K-12 in the fields of mathematics, science, and modern foreign languages and in the fields of, English/language arts and history/social studies in grades K-8 only, appearing on the list of textbooks published by the commissioner of elementary and secondary education as provided in section 16-23-3, to all pupils of elementary and secondary school grades resident in the community, the textbooks to be loaned to the pupils free of charge, subject to any rules and regulations as to care and custody that the school committee may prescribe.

 (b) Every school committee shall also furnish at the expense of the community all other textbooks and school supplies used in the public schools of the community, the other textbooks and supplies to be loaned to the pupils of the public schools free of charge, subject to any rules and regulations as to care and custody that the school committee may prescribe. School books removed from school use may be distributed to pupils, and any textbook may become the property of a pupil who has completed the use of it in school, subject to rules and regulations prescribed by the school committee.

 (c) Nothing in this section shall be construed to forbid requiring or accepting from a pupil a deposit of a reasonable amount of money as a guaranty for the return of school property other than the books and supplies required in this section to be loaned free of charge, provided that the school committee shall make suitable rules and regulations for the safekeeping and return of deposits; and, provided, further, that in establishing schedules for deposits, the school committee should include provision for waiver of deposit due to financial hardship.

16-23-3. Published textbook list. -- The commissioner shall publish annually a list of textbooks in use in the public schools in the field fields of mathematics, science, and modern foreign languages, English/language arts and history/social studies to all students in grades K-12 and in the fields of English/language arts and history/social studies in grades K-8 only. The list shall be published for the purpose of the loan of the textbooks to all resident pupils as provided for in section 16-23-2 and shall not include any textbooks of a sectarian nature or containing sectarian material.

16-23-3.1. Reimbursements to municipalities for costs of English/language arts and history/social studies textbooks for students in grades K-8 only. Reimbursements to municipalities for costs of English/language arts and history/social studies textbooks for students in grades K-12. -- There is hereby established a textbook reimbursement fund for which the general assembly shall make a specific appropriation. The department of elementary and secondary education shall administer the appropriation. School districts shall submit to the department of elementary and secondary education evidence of the cost of English/language arts and/or history/social studies textbooks that the district has provided to students in grades K- 8 only 12 pursuant to section 16-23-2. The costs shall be reimbursed from the textbook reimbursement fund by the department of elementary and secondary education upon presentation by a school district of the evidence of cost.

SECTION 12. Section 45-38.1-3 of the General Laws in Chapter 45-38.1 entitled "Health And Educational Building Corporation" is hereby amended to read as follows:

45-38.1-3. Definitions. -- As used in this chapter, the following words and terms have the following meaning unless the context indicates another or different meaning or intent:

 (1) "Bonds" means bonds of the corporation issued under the provisions of this chapter, including refunding bonds, notwithstanding that the bonds may be secured by mortgage or the full faith and credit of the corporation or the full faith and credit of a participating institution for higher education or of a participating health care provider or any other lawfully pledged security of a participating educational institution or child day care center or of a participating health care provider;

 (2) "Borrower" means a student or a parent who has received or agreed to pay an education loan;

 (3) "Cooperative hospital service organization" means a corporation created pursuant to chapter 6 of title 7, which meets the requirements of section 501(e) of the Internal Revenue Code of 1954, 26 U.S.C. section 501(e), and is exempt from federal taxation of income in accordance with section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. section 501(c)(3);

 (4) "Corporation" means the Rhode Island health and educational building corporation created and established as a nonbusiness corporation, under and pursuant to chapter 6 of title 7, as amended, and constituted and established as a public body corporate and agency of the state under section 45-38.1-4, or any board, body, commission, department, or officer succeeding to the principal functions of the corporation or to whom the powers conferred upon the corporation by this chapter are given by law;

 (5) "Corporation loans" means loans by the corporation to an educational institution or child day care center for the purpose of funding education loans;

 (6) "Cost" as applied to a project or any portion of it, financed under the provisions of this chapter, embraces all or any part of the cost of construction and acquisition of all lands, structures, real or personal property, rights, rights of way, franchises, easements, and interests acquired or used for a project, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved, the cost of all machinery and equipment, financing charges, interest prior to, during and for a period after completion of the construction, provisions for working capital, reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations and improvements, cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, administrative expenses, expenses necessary or incident to determining the feasibility or practicability of constructing the project, and other expenses that may be necessary or incident to the construction and acquisition of the project, the financing of the construction and acquisition, and the placing of the project in operation;

 (7) "Default insurance" means insurance insuring education loans, corporation loans, or bonds or notes of the corporation against default;

 (8) "Default reserve fund" means a fund established pursuant to a resolution of the corporation for the purpose of securing education loans, corporation loans, or bonds or notes of the corporation;

 (9) "Education loan" means a loan which is made by or on behalf of an educational institution or child day care center from the proceeds of a corporation loan, to a student or parents of a student or both, to finance the student's attendance at the institution;

 (10) "Education loan series portfolio" means all education loans made by or on behalf of a specific educational institution or child day care center which are funded from the proceeds of a corporation loan to the institution out of the proceeds of a related specific bond or note issued through the corporation;

 (11) "Health care provider" means:

 (i) Any nonprofit hospital incorporated under the laws of the state, including any nonprofit subsidiary corporations formed by any hospital or formed by the parent corporation of the hospital;

 (ii) Any nonprofit corporation, the member or members of which consist solely of one or more hospitals or their parent corporations;

 (iii) Any other hospital, which is licensed as a general hospital or maternity hospital pursuant to chapter 17 of title 23, which is exempt from taxation;

 (iv) Any nonprofit group health association;

 (v) Any cooperative hospital service organization, or any nonprofit corporation that is licensed as a skilled nursing and/or intermediate care facility pursuant to chapter 17 of title 23, including any nonprofit subsidiary corporation formed by any of the foregoing skilled nursing and/or intermediate care facilities, or any nonprofit corporation eligible to receive funding, pursuant to chapter 8.5 of title 40.1, and/or a corporation created pursuant to chapter 6 of title 7; provided, that it is a real estate holding corporation created for the benefit of a nonprofit corporation eligible to receive funding under chapter 8.5 of title 40.1;

 (vi) Any nonprofit health care corporation whose purpose is to provide home care services or supplies to the citizens of this state including, but not limited to, nonprofit visiting nurse associations and nonprofit home care organizations;

 (vii) Any other not-for-profit corporation organized pursuant to chapter 6 of title 7 or pursuant to any special act of the general assembly and which is exempt from federal taxation of income in accordance with section 501(c)(3), 26 U.S.C. section 501(c)(3), of the Internal Revenue Code and which is licensed as:

 (A) A health care facility pursuant to chapter 17 of title 23;

 (B) A "facility" pursuant to chapter 24 of title 40.1;

 (C) A "residential care and assisted living facility" pursuant to chapter 17.4 of title 23; or

 (D) An adult day-care facility;

 (viii) Any not-for-profit corporation which is exempt from federal taxation of income in accordance with section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. section 501(c)(3), or any successor section of the Internal Revenue Code, which under contract with the state educates, counsels or rehabilitates young people who have come subject to child welfare, juvenile justice or mental health systems in the state; or

 (ix) Any network or similar arrangement of those entities listed in subsection (11)(i) through (viii) above;

 (12) "Educational institution" means an educational institution or local education authority participating in the school housing aid program as described in chapter 16-7 situated within this state which, by virtue of law or charter, is a public or other nonprofit educational institution empowered to provide a program of education at the primary, secondary or high school level, beyond the high school level, and which is accredited by a nationally recognized educational accrediting agency or association and awards a bachelor's or advance degree or provides a program of not less than two (2) years' duration which is accepted for full credit toward a bachelor's degree;

 (13) "Loan funding deposit" means monies or other property deposited by an educational institution or child day care center with the corporation, a guarantor, or a trustee for the purpose of:

 (i) Providing security for bonds or notes;

 (ii) Funding a default reserve fund;

 (iii) Acquiring default insurance;

 (iv) Defraying costs of the corporation, the monies or properties to be in amounts as deemed necessary by the corporation or a guarantor as a condition for the institution's participation in the corporation's programs;

 (14) "Nonprofit group health association" means an association or a corporation established by an act of the general assembly, or created pursuant to chapter 6 of title 7, to provide all or any part of a project or property to the citizens of this state;

 (15) "Parent" means any parent, legal guardian, or sponsor of the student at an educational institution or child day care center;

 (16) "Participating hospital" means a hospital which, pursuant to the provisions of this chapter, undertakes the financing and construction or acquisition of a project or undertakes the refunding or refinancing of obligations or of a mortgage or of advances as provided in and permitted by this chapter;

 (17) "Participating educational institution" means an educational institution or child day care center which, pursuant to the provisions of this chapter, undertakes the financing and construction or acquisition of a project, or undertakes the refunding or refinancing of obligations or of a mortgage or of advances or undertakes the financing, directly or indirectly, of education loans, all as provided in and permitted by this chapter;

 (18) "Project," in the case of a participating educational institution or child day care center means a structure suitable for use as a dormitory or other housing facility, dining hall, student union, administration building, academic building, library, laboratory, research facility, classroom, athletic facility, health care facility, and maintenance, storage or utility facility, and other structures or facilities related to the educational institution or child day care center or required or useful for the instruction of students or the conducting of research or the operation of an educational institution or child day care center including parking and other facilities or structures essential or convenient for the orderly conduct of the educational institution or child day care center and also includes equipment and machinery and other similar items necessary or convenient for the operation of a particular facility or structure in the manner for which its use is intended, but does not include such items as books, fuel, supplies, or other items which are customarily deemed to result in a current operating charge; and, in the case of a participating health care provider, means a structure suitable for use as a hospital, clinic, nursing home, congregate housing for the elderly and/or infirm, mental health service unit, or other health care facility, laboratory, laundry, nurses', interns', or clients' residence, administration building, research facility, and maintenance, storage or utility facility, and other structures or facilities related to the health care provider or required or useful for the operation of the project, including parking and other facilities or structures essential or convenient for the orderly operation of the project, and also includes equipment and machinery and other similar items necessary or convenient for the operation of the project in the manner for which its use is intended, but does not include such items as fuel, supplies, or other items which are customarily deemed to result in a current operating charge;

 (19) "State" means the state of Rhode Island and Providence Plantations;

 (20) "Child day care center" means a child day care center as defined in section 23-28.1-5, which is a not-for-profit organization;

 (21) "Note" means a written promise to pay, including, but not limited to, capital notes and revenue anticipation notes;

 (22) "Capital note(s)" means a note or notes of the corporation not exceeding twelve (12) months in duration to maturity issued for the benefit of a health care provider or educational institution to purchase capital assets to be used in the operations of the health care provider or educational institution; and

 (23) "Revenue anticipation note(s)" means a note or notes of the corporation not exceeding twelve (12) months in duration to maturity issued for the benefit of a health care provider or educational institution in anticipation of revenues reasonably expected to be collected by the health care provider or educational institution within twelve (12) months from the date of the note or notes.

SECTION 13. Section 16-8-10.1 of the General Laws in Chapter 16-8 entitled "Federal Aid" is hereby amended to read as follows:

16-8-10.1. Mandatory school breakfast program. – (a) All public schools shall make a breakfast program available to students attending the school. The breakfast shall meet any rules and regulations that are adopted by the commissioner.

(b) Any costs (other than transportation costs) associated with this program in excess of available federal money shall be borne exclusively by the state of Rhode Island and not by municipalities.

SECTION 14. Section 16-1-14 of the General Laws in Chapter 16-1 entitled "State Department of Elementary and Secondary Education" is hereby repealed.

16-1-14. Breakfast program established. -- (a) (1) Any school district may, with the consent of the joint committee on legislative services established by section 22-11-1, establish a pilot school breakfast program.

 (2) Any costs (other than transportation costs) associated with this program in excess of available federal money shall be borne exclusively by the state of Rhode Island and not by municipalities.

 (b) Nothing in this section shall be interpreted to prevent a school district not covered in this section from implementing a school breakfast program in any of its schools.

 (c) The department of elementary and secondary education may promulgate rules and regulations necessary for implementation of this section in compliance with federal guidelines.

 (d) The pilot school program established by this section shall be administered by the joint committee on legislative services, which shall promulgate regulations governing eligibility for participation in the program.

 (e) There shall be appropriated the sum of two hundred thousand dollars ($200,000) to cover the cost of the pilot program established in this section.

SECTION 15.  This article shall take effect as of July 1, 2003.

 

 

ARTICLE 10

RELATING TO VIDEO LOTTERY TERMINALS

SECTION 1. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled
“Video Lottery Terminal” is hereby amended to read as follows:

42-61.2-7.  Division of revenue. -- (a) Notwithstanding the provisions of § 42-61-15, the allocation of net terminal income derived from video lottery games is as follows:

(1) For deposit in the general fund and to the state lottery commission fund for administrative purposes: Net terminal income not otherwise disbursed in accordance with subdivisions (a)(2) through (a)(5) herein; No less than fifty-one percent (51%) in fiscal year 2002; no less than fifty-two percent (52%) in fiscal year 2003; no less than fifty-three percent (53%) in fiscal year 2004; no less than fifty-four percent (54%) in fiscal year 2005; no less than fifty-five percent (55%) in fiscal year 2006; and each year thereafter.

(2) To the licensed video lottery retailer: (a) Lincoln Greyhound Park – twenty-seven percent (27%); (b) Newport Jai Ali – twenty-six percent (26%); thirty-one percent (31%) in fiscal year 2002; thirty and one-half percent (30.5%) in fiscal year 2003; thirty percent (30%) in fiscal year 2004; twenty-nine and one-half percent (29.5%) in fiscal year 2005; twenty-nine percent (29%) in fiscal year 2006; and each year thereafter.

(3) To the owners of dog kennels who are under contract with a licensee: six percent (6%) three and four-tenths (3.4%) of net terminal income derived from video lottery games located at the facility; in fiscal year 2002; five and one-half percent (5.5%) in fiscal year 2003; five percent (5%) in fiscal year 2004; four and one-half percent (4.5%) in fiscal year 2005; four percent (4%) in fiscal year 2006; and each year thereafter. The percentage not allocated to the owner of dog kennels reverts back to the general revenue fund and to the state lottery commission for administrative purposes;

(4) (i) To the technology provider: providers who are not a party to the Master Contract as set forth and referenced in public law 2003, chapter 32, seven percent (7%) eleven percent (11%) of the net terminal income of the said provider's terminals less all reasonable charges and fees to the communications provider associated with the supplying, maintenance, and operations of the communications system. The lottery commission shall determine the fees to the communications system provider which shall be no more than two and one-half percent (2.5%) of the net terminal income; The  lottery commission shall implement an incentive structure for said providers for Fiscal Year 2004 only, based on machine performance, not to exceed eight and one-half percent (8.5%) of net terminal income of the provider's terminals.  The lottery commission shall present this incentive structure in a report to the speaker of the house, the president of the senate and the governor, at least ninety (90) days prior to implementation of said incentive structure;

(ii) To contractors who are a party to the Master Contract as set forth and referenced in Public Law 2003, Chapter 32, all sums due and payable under said Master Contract.

(5) To the city or town in which the licensed video retailer is licensed: one percent (1%); and

(6) Unclaimed prizes and credits shall remit to the general fund of the state;

(7) Payments into the state's general fund specified in subdivisions (a)(1) and (a)(6) hall be made on an estimated monthly basis. Payment shall be made on the tenth day following the close of the month except for the last month when payment shall be on the last business day.

(b) Provided, however, that for the fiscal year commencing July 1, 1993 and subsequent fiscal years, the sum of five million dollars ($5,000,000) to the extent possible shall be contributed to the distressed communities relief program, pursuant to § 45-13-12, to be distributed according to the formula and the contributions shall be as follows:

(1) One million one hundred fifty-two thousand six hundred eighty-three dollars ($1,152,683) of the net terminal income due retailers under subdivision (a)(2) deposited as general revenues as follows: Lincoln Greyhound Park seven hundred sixty-seven thousand, six hundred eighty-seven dollars ($767,687) and Newport Jai Alai Fronton three hundred eighty-four thousand nine hundred ninety-six dollars ($384,996).

(2) Two hundred eighteen thousand five hundred seventy-nine dollars ($218,579) of the net terminal income due kennel owners under subdivision (a)(3) deposited as general revenues.

(3) Six hundred and twenty-eight thousand seven hundred and thirty-seven dollars ($628,737) of the net terminal income due the technology providers under subsection (a)(4) (a)(3) deposited as general revenues.

(4) Three million dollars ($3,000,000) from the state general revenue fund.

SECTION 2. Section 41-7-3 of the General Laws in Chapter 41-7 entitled "Jai Alai" is hereby amended to read as follows:

41-7-3. Regulation of operations -- Licensing. -- (a) The division of racing and athletics is hereby authorized to license jai alai in the city of Newport. The operation of a fronton shall be under the division's supervision. The division is hereby authorized to issue rules and regulations for the supervision of the operations.

 (b) Any license granted under the provisions of this chapter shall be subject to the rules and regulations promulgated by the division and shall be subject to suspension or revocation for any cause which the division shall deem sufficient after giving the licensee a reasonable opportunity for a hearing at which he or she shall have the right to be represented by counsel. If any license is suspended or revoked, the division shall state the reasons for the suspension or revocation and cause an entry of the reasons to be made on the record books of the division.

(c) Commencing July 1, 2003, the division of racing and athletics shall be prohibited to license Jai Alai in the city of Newport. Any license having been issued and in effect as of said date shall be null and void and any licensee shall be prohibited from operating thereunder. Provided, however, that any entity having been issued a license to operate a Jai Alai fronton prior to said date shall be deemed a pari-mutuel licensee as defined in chapter 61.2 of title 42 and a licensee as defined in chapter 11 of title 41.

SECTION 3.  This article shall take effect as of July 1, 2003.

ARTICLE 11

RELATING TO LICENSING OF HEALTH CARE FACILITIES

SECTION 1.  Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled “Licensing of Health Care Facilities” is hereby amended as follows:

23-17-38.1.  Hospitals-- Licensing Fee. -- (a) There is imposed a hospital licensing fee at the rate of four and thirty-five hundredths percent (4.35%) (4.00%) upon the net patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, 2000 2001. This licensing fee shall be administered and collected by the tax administrator, division of taxation within the department of administration, and all the administration, collection and other provisions of chapter 50 and 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator on or before October 31, 2002 2003, and payments shall be made by electronic transfer of monies to the general treasurer and deposited to the general fund in accordance with § 44-50-11. Every hospital shall, on or before October 1, 2002 2003, make a return to the tax administrator containing the correct computation of net patient services revenue for the hospital fiscal year ending September 30, 2000 2001, and the licensing fee due upon that amount. All returns shall be signed by the hospital's authorized representative, subject to the pains and penalties of perjury.

(b) For purposes of this section the following words and phrases have the following meanings:

(1) "Hospital" means a person or governmental unit duly licensed in accordance with this chapter to establish, maintain, and operate a hospital, except a hospital whose primary service and primary bed inventory are psychiatric.

(2) "Gross patient services revenue" means the gross revenue related to patient care services.

(3) "Net patient services revenue" means the charges related to patient care services less (i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances.

(c) The tax administrator shall make and promulgate any rules, regulations, and procedures not inconsistent with state law and fiscal procedures that he or she deems necessary for the proper administration of this section and to carry out the provisions, policy and purposes of this section.

(d) The licensing fee imposed by this section shall be in addition to the inspection fee imposed by § 23-17-38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.

SECTION 2.  This article shall take effect on July 1, 2003 and shall apply to hospitals, as defined in Section 1, which are duly licensed on July 1, 2003. The licensing fee imposed by Section 1 shall be in addition to the inspection fee imposed by Section 23-17-38 and to any licensing fees previously imposed in accordance with Section 23-17-38.1.

 

 

ARTICLE 12

RELATING TO HUMAN SERVICES -- THE FAMILY INDEPENDENCE ACT

SECTION 1. Section 40-5.1-8 of the General Laws in Chapter 40-5.1 entitled "Family Independence Act" is hereby amended to read as follows:

40-5.1-8. Eligibility for cash assistance. -- (a) (1) Except as otherwise provided for in this section, no person shall be included in any family for purposes of determining eligibility for or the amount of cash to which a family is entitled under this chapter, unless the person is a resident of the state and is: (A) either a citizen; or (B) lawfully admitted for permanent residence before August 22, 1996, or (C) otherwise lawfully entitled to reside in the United States before August 22, 1996 and is determined to have a status within the meaning of the term "qualified alien", or an exception thereto, under section 402(b) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Laws No. 104-193), and as such section may hereafter be amended; or (D) an alien who on or after August 22, 1996 is determined to have a status within the meaning of the term "qualified alien", or an exception thereto, under section 402(b) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Laws No. 104-193), and as such section may hereafter be amended.

 (2) An alien who does not meet the citizenship or alienage criteria in subsection (a)(1) above, who was lawfully residing in the United States before August 22, 1996 and who is a resident of this state prior to July 1, 1997, shall be eligible for cash assistance under this chapter without regard to the availability of federal funding; and provided, however, that such person meets all other eligibility requirements under this chapter.

 (3) Except as provided herein, no person shall be ineligible for assistance payments under this chapter due solely to the restricted eligibility rules otherwise imposed by section 115(a)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Laws No. 104-193) and as such section may hereafter be amended.  No person convicted of a drug related felony, as defined herein, shall be eligible for assistance payments under this chapter.  For purposes of this chapter, "drug related felony" means the conviction (under federal or state law) subsequent to August 22, 1996 of an individual of any offense which is classified as a felony by the law of the jurisdiction involved and which has as an element the distribution or sale of a controlled substance (as defined in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6)).

 (b) No family shall be eligible for assistance payments if the combined value of its available resources (reduced by any obligations or debts with respect to such resources) exceed one thousand dollars ($1,000). For purposes of this subsection, the following shall not be counted as resources of the family:

 (1) The home owned and occupied by a child, parent, relative or other individual;

 (2) Real property owned by a husband and wife as tenants by the entirety, if the property is not the home of the family and if the spouse of the applicant refuses to sell his or her interest in the property;

 (3) Real property which the family is making a good faith effort to dispose of, but any aid payable to the family for any such period shall be conditioned upon such disposal and any payments of aid for that period shall (at the time of disposal) be considered overpayments to the extent that they would not have occurred at the beginning of the period for which the payments were made. Any overpayments that may have occurred are debts subject to recovery in accordance with the provisions of section 40-5.1-28;

 (4) Income producing property other than real estate including but not limited to equipment such as farm tools, carpenter's tools and vehicles used in the production of goods or services which the department determines are necessary for the family to earn a living;

 (5) A One (1) vehicle for each adult household member but not to exceed two (2) vehicles per household, and in addition, a vehicle used primarily for income producing purposes such as but not limited to a taxi, truck or fishing boat; a vehicle used as a family's home; a vehicle which annually produces income consistent with its fair market value, even if only used on a seasonal basis; a vehicle necessary for long distance travel, other than daily commuting, which is essential to the employment of a family member; a vehicle necessary to transport a family member with a disability where the vehicle is specially equipped to meet the specific needs of the person with a disability or if the vehicle is a special type of vehicle that makes it possible to transport the person with a disability;

 (6) Household furnishings and appliances, clothing, personal effects and keepsakes of limited value;

 (7) Burial plots (one for each child, relative, and other individual), and funeral arrangements;

 (8) For the month of receipt and the following month, any refund of federal income taxes made to the family by reason of section 32 of the Internal Revenue Code of 1986, 26 U.S.C. section 32, (relating to earned income tax credit), and any payment made to the family by an employer under section 3507 of the Internal Revenue Code of 1986, 26 U.S.C. section 3507 (relating to advance payment of such earned income credit);

 (9) The resources of any family member receiving supplementary security income assistance under the Social Security Act, 42 U.S.C. section 301 et seq.

 (c) For purposes of subsection (b), the resources of a family shall include only that part of the fair market value of any vehicle (not otherwise excluded) which exceeds the value for such inclusion established by the federal food stamp program administered pursuant to section 40-6-8, and as such value may hereafter be amended, or that portion of the family's equity in a vehicle which exceeds one thousand five hundred dollars ($1,500) -- whichever is less;

 (d) (1) Except as otherwise provided for in this section, no person shall be included in any family for purposes of determining eligibility for or the amount of cash to which a family is entitled under this chapter, if that person after attaining eighteen (18) years of age, has received cash assistance under this chapter for a total of sixty (60) months (whether or not consecutive). The limitation in the preceding sentence only shall apply only if required by federal statute or regulation.

 (2) In calculating the sixty (60) month limit imposed in subsection (d)(1), the department shall disregard any month for which assistance was provided with respect to a minor parent or minor pregnant woman during those months when the individual was a minor child.

 (3) The department may exempt a family from the application of subsection (d)(1) by reason of hardship; provided, however, that the number of such families to be exempted by the department under this subsection shall not exceed twenty percent (20%) of the average monthly number of families to which assistance is provided for under this chapter in a fiscal year; provided, however, that to the extent now or hereafter permitted by federal law any waiver granted under section 40-5.1-46(a) shall not be counted in determining the twenty percent (20%) maximum under this section.

 (e) Notwithstanding any other provision of this chapter, the amount of cash to which a family is entitled under the chapter shall be reduced by thirty percent (30%) until the family has been a resident of the state for twelve (12) consecutive months; provided, however, that no member of the family who has been resident of the state for twelve (12) consecutive months or longer shall have his or her benefit reduced under this subsection.

 (f) (1) A family:

 (i) Consisting of a parent who is under the age of eighteen (18) (minor parent); and

 (ii) Who has never been married; and

 (iii) Who has a child, or a family which consists of a woman under the age of eighteen (18) who is at least six months pregnant (pregnant minor), shall be eligible for cash assistance only if such family resides in the home of a parent, legal guardian or other adult relative. Such assistance shall be provided to the parent, legal guardian, or other adult relative on behalf of such individual and child unless otherwise authorized by the department.

 (2) Subdivision (1) shall not apply if:

 (i) (A) Such minor parent or pregnant minor has no parent, legal guardian or other adult relative who is living and or whose whereabouts are known;

 (B) The department determines that the physical or emotional health or safety of the minor parent, or his or her child, or the pregnant minor, would be jeopardized if he or she was required to live in the same residence as his or her parent, legal guardian or other adult relative (refusal of a parent, legal guardian or other adult relative to allow the minor parent or his or her child, or a pregnant minor, to live in his or her home shall constitute a rebutable presumption that the health or safety would be so jeopardized);

 (C) The minor parent or pregnant minor has lived apart from his or her own parent or legal guardian for a period of at least one year before either the birth of any such minor parent's child or the onset of the pregnant minor's pregnancy; or

 (D) There is good cause, under departmental regulations, for waiving the subsection; and

 (ii) The individual resides in supervised supportive living arrangement to the extent available. For purposes of this section "supervised supportive living arrangement" means an arrangement which:

 (A) Requires teen parents to enroll and make satisfactory progress in a program leading to a high school diploma or a general education development certificate;

 (B) Requires teen parents to participate in the adolescent parenting program established in chapter 19 of this title to the extent such program is available; and

 (C) Provides rules and regulations which insure regular adult supervision.

 (g) As a condition of eligibility for cash and medical assistance under this chapter, each adult member of the family has:

 (1) Assigned to the state any rights to support for children within the family from any person which the family member has at the time the assignment is executed or may have while receiving assistance under this chapter;

 (2) Consented to and is cooperating with the state in establishing the paternity of a child born out of wedlock with respect to whom assistance is claimed, and in obtaining support payments for such family member with respect to whom the aid is claimed, or in obtaining any other payments or property due any family member, unless the applicant is found to have good cause for refusing to comply with the requirements of this subsection.

 Absent good cause for refusing to comply with the requirements of this subsection, the amount of cash to which a family is otherwise entitled shall be reduced by twenty-five percent (25%) until the adult member of the family who has refused to comply with the requirements of this subsection consents to and cooperates with the state in accordance with the requirements of this subsection.

 (3) Consented to and is cooperating with the state in identifying, and providing information to assist the state in pursuing any third party who may be liable to pay for care and services under Title XIX of the Social Security Act, 42 U.S.C. section 1396 et seq.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 13

Relating To Motor Vehicle and Trailer Excise Tax

SECTION 1. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled “Motor Vehicle and Trailer Excise Tax Elimination Act of 1998” is hereby amended to read as follows:

44-34.1-2.  City and town and fire district reimbursement. -- (a) In fiscal years 2000 through 2008, cities and towns and fire districts shall receive reimbursements, as set forth within, from state general revenues equal to the amount of lost tax revenue due to the phase out or reduction of the excise tax. Cities and towns and fire districts shall receive advance reimbursements through state fiscal year 2002. In the event the tax is phased out in fiscal year 2008, in fiscal year 2009, cities and towns and fire districts shall receive a permanent distribution of sales tax revenue pursuant to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination. Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels for each city, town, and fire district except that the Town of Johnston's base tax rate must be fixed at a fiscal year 1999 level.

(b) The director of administration shall determine the amount of general revenues to be distributed to each city and town and fire district for the fiscal years 1999 through 2008 so that every city and town and fire district is held harmless from tax loss resulting from this chapter, assuming that tax rates are indexed to inflation through fiscal 2003.

(2) The director of administration shall index the tax rates for inflation by applying the annual change in the December consumer price index – all urban consumers (CPI-U), published by the bureau of labor statistics of the United States department of labor, to the indexed tax rate used for the prior fiscal year calculation; provided that for state reimbursements in fiscal years 2004 and thereafter, the indexed tax rate shall not be subject to further CPI-U adjustments. The director shall apply the following principles in determining reimbursements:

(i) Exemptions granted by cities and towns and fire districts in the fiscal year 1998 must be applied to assessed values prior to applying the exemptions in § 44-34.1-1(c)(1). Cities and towns and fire districts will not be reimbursed for these exemptions.

(ii) City, town, and fire districts shall be reimbursed by the state for revenue losses attributable to the exemptions provided for in § 44-34.1-1 and the inflation indexing of tax rates through fiscal 2003; provided, however, that reimbursement for revenue losses shall be calculated based upon the difference between the maximum taxable value less personal exemptions and the net assessed value.

(iii) Inflation reimbursements shall be the difference between:

(A) The levy calculated at the tax rate used by each city and town and fire district for fiscal year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions contained in § 44-34.1-1(c)(1); provided, however, that for the Town of Johnston the tax rate used for fiscal year 1999 must be used for the calculation; and

(B) The levy calculated by applying the appropriate cumulative inflation adjustment through state fiscal 2003 to the tax rate used by each city and town and fire district for fiscal year 1998; provided, however, that for the Town of Johnston the tax rate used for fiscal year 1999 shall be used for the calculation after adjustments for personal exemptions but prior to adjustments for exemptions contained in § 44-34.1-1.

(c) Funds shall be distributed to the cities and towns and fire districts as follows:

(i) On October 20, 1998, and each October 20 thereafter through October 20, 2001, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.

(ii) On February 20, 1999, and each February 20 thereafter through February 20, 2002, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.

(iii) On June 20, 1999, and each June 20 thereafter through June 20, 2002, fifty percent (50%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.

(iv) On August 1, 2002 and each August 1 thereafter through August 1, 2007, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

(v) On November 1, 2002 and each November 1 thereafter through November 1, 2007, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

(vi) On February 1, 2003 and each February 1 thereafter through February 1, 2008, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

(vii) On May 1, 2003 and each May 1 thereafter through May 1, 2008, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.

Provided, however, the February and May payments shall be subject to submission of final certified and reconciled motor vehicle levy information.

(2) Each city, town, or fire district shall submit final certified and reconciled motor vehicle levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the previous fiscal year shall be included or deducted from the payment due November 1.

(3) On any of the payment dates specified in paragraphs (c)(1)(i) through (vii), the director is authorized to deduct previously made over-payments or add supplemental payments as may be required to bring the reimbursements into full compliance with the requirements of this chapter.

(4) For the city of East Providence, the payment schedule is twenty-five percent (25%) on February 20, 1999 and each February 20 thereafter through February 20, 2002, twenty-five percent (25%) on June 20, 1999 and each June 20 thereafter through June 20, 2002, which includes final reconciliation of the previous year's payment, and fifty percent (50%) on October 20, 1999 and each October 20 thereafter through October 20, 2002. For local fiscal years 2003 through 2008, the payment schedule is twenty-five percent (25%) on each November 1, twenty-five percent (25%) on each February 1, twenty-five percent (25%) on each May 1, which includes final reconciliation of the previous year's payment, and twenty-five percent (25%) on each August 1; provided, however, the May and August payments shall be subject to submission of final certified and reconciled motor vehicle levy information.

(5) In the event the tax is phased out in fiscal year 2008, funds distributed to the cities, towns, and fire districts for fiscal year 2009 shall be calculated as the funds distributed in fiscal year 2008 adjusted by the change in the consumer price index all urban consumers (CPI-U) published by the bureau of labor statistics of the United States department of labor from June 2007 to June 2008. Twenty-five percent (25%) of the amounts calculated shall be distributed to the cities and towns and fire districts on August 1, 2008, twenty-five percent (25%) on November 1, 2008, twenty-five percent (25%) on February 1, 2009, and twenty-five percent (25%) on May 1, 2009. The funds shall be distributed to each city and town and fire district in the same proportion as distributed in fiscal year 2008.

(6) In the event the tax is phased out in fiscal year 2008, to August 1, 2009, the director of administration shall calculate to the nearest tenth of one cent (0.1¢) the number of cents of sales tax received for the fiscal year ending June 30, 2009, equal to the amount of funds distributed to the cities, towns, and fire districts under this chapter during fiscal year 2009, and the percent of the total funds distributed in fiscal year 2009, received by each city, town, and fire district, calculated to the nearest one-hundredth of one percent (0.01%). The director of administration shall transmit those calculations to the governor, the speaker of the house, the president of the senate, the chairperson of the house finance committee, the chairperson of the senate finance committee, the house fiscal advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to the cities and towns and fire districts under this chapter for fiscal year 2010, and each year thereafter. The cities and towns and fire districts shall receive that amount of sales tax in the proportions calculated by the director of administration as that received in fiscal year 2009.

(7) In the event the tax is phased out in fiscal year 2008, twenty-five percent (25%) of the funds shall be distributed to the cities, towns, and fire districts on August 1, 2009, and every August 1 thereafter; twenty-five percent (25%) shall be distributed on November 1, 2009, and every November 1 thereafter; twenty-five percent (25%) shall be distributed on February 1, 2010, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on May 1, 2010, and every May 1 thereafter.

(8) For the city of East Providence, in the event the tax is phased out in fiscal year 2008, twenty-five percent (25%) shall be distributed on November 1, 2009 and every November 1 thereafter, twenty-five percent (25%) shall be distributed on February 1, 2010 and every February 1 thereafter; twenty-five percent (25%) shall be distributed on May 1, 2010, and every May 1 thereafter; and twenty-five percent (25%) of the funds shall be distributed on August 1, 2010 and every August 1 thereafter.

(9) As provided for in § 44-34-6, the authority of fire districts to tax motor vehicles is eliminated effective with the year 2000 tax roll and the state reimbursement for fire districts shall be based on the provisions of § 44-34-6. All references to fire districts in this chapter do not apply to the year 2001 tax roll and thereafter.

SECTION 2. This article shall take effect as of July 1, 2003.

ARTICLE 14

RELATING TO ENVIRONMENTAL MANAGEMENT

SECTION 1.  Section 42-17.1-2 of the General Laws in Chapter 42 entitled "Powers and duties" is hereby amended to read as follows:

42-17.1-2.  Powers and duties. -- The director of environmental management shall have the following powers and duties:

(a) To supervise and control the protection, development, planning, and utilization of the natural resources of the state, such resources, including but not limited to, water, plants, trees, soil, clay, sand, gravel, rocks and other minerals, air, mammals, birds, reptiles, amphibians, fish, shellfish, and other forms of aquatic, insect, and animal life;

(b) To exercise all functions, powers, and duties heretofore vested in the department of agriculture and conservation, and in each of the divisions of the department, such as the promotion of agriculture and animal husbandry in their several branches, including the inspection and suppression of contagious diseases among animals, the regulation of the marketing of farm products, the inspection of orchards and nurseries, the protection of trees and shrubs from injurious insects and diseases, protection from forest fires, the inspection of apiaries and the suppression of contagious diseases among bees, prevention of the sale of adulterated or misbranded agricultural seeds, promotion and encouragement of the work of farm bureaus in cooperation with the University of Rhode Island, farmers' institutes and the various organizations established for the purpose of developing an interest in agriculture, together with such other agencies and activities as the governor and the general assembly may from time to time place under the control of the department, and as heretofore vested by such of the following chapters and sections of the general laws as are presently applicable to the department of environmental management and which were previously applicable to the department of natural resources and the department of agriculture and conservation or to any of its divisions: chapters 1 through 22, inclusive, as amended, in title 2 entitled "Agriculture and Forestry;" chapters 1 through 17, inclusive, as amended, in title 4 entitled "Animals and Animal Husbandry;" chapters 1 through 19, inclusive, as amended, in title 20 entitled "Fish and Wildlife;" chapters 1 through 32, inclusive, as amended, in title 21 entitled "Food and Drugs;" chapter 7 of title 23 as amended, entitled "Mosquito Abatement;" and by any other general or public law relating to the department of agriculture and conservation or to any of its divisions or bureaus;

(c) To exercise all the functions, powers, and duties heretofore vested in the division of parks and recreation of the department of public works by chapters 1, 2, and 5 in title 32 entitled "Parks and Recreational Areas;" by chapter 22.5 of title 23, as amended, entitled "Drowning Prevention and Lifesaving;" and by any other general or public law relating to the division of parks and recreation;

(d) To exercise all the functions, powers, and duties heretofore vested in the division of harbors and rivers of the department of public works, or in the department itself by such as were previously applicable to the division or the department, of chapters 1 through 22 and sections thereof, as amended, in title 46 entitled "Waters and Navigation"; and by any other general or public law relating to the division of harbors and rivers;

(e) To exercise all the functions, powers and duties heretofore vested in the department of health by chapters 25, 18.9, and 19.5 of title 23, as amended, entitled "Health and Safety;" and by chapters 12 and 16 of title 46, as amended, entitled "Waters and Navigation"; by chapters 3, 4, 5, 6, 7, 9, 11, 13, 18, and 19 of title 4, as amended, entitled "Animals and Animal Husbandry;" and those functions, powers, and duties specifically vested in the director of environmental management by the provisions of § 21-2-22, as amended, entitled "Inspection of Animals and Milk;" together with other powers and duties of the director of the department of health as are incidental to or necessary for the performance of the functions transferred by this section;

(f) To cooperate with the Rhode Island Economic Development Corporation in its planning and promotional functions, particularly in regard to those resources relating to agriculture, fisheries, and recreation;

(g) To cooperate with, advise, and guide conservation commissions of cities and towns created under chapter 35 of title 45 entitled "Conservation Commissions", as enacted by chapter 203 of the Public Laws, 1960;

(h) To assign or reassign, with the approval of the governor, any functions, duties, or powers established by this chapter to any agency within the department, except as hereinafter limited;

(i) To cooperate with the water resources board and to provide to the board facilities, administrative support, staff services, and such other services as the board shall reasonably require for its operation and, in cooperation with the board and the statewide planning program to formulate and maintain a long range guide plan and implementing program for development of major water sources transmissions systems needed to furnish water to regional and local distribution systems;

(j) To cooperate with the solid waste management corporation and to provide to the corporation such facilities, administrative support, staff services and such other services within the department as the corporation shall reasonably require for its operation;

(k) To provide for the maintenance of waterways and boating facilities, consistent with chapter 6.1 of title 46, by: (1) establishing minimum standards for upland beneficial use and disposal of dredged material; (2) promulgating and enforcing rules for water quality, ground water protection, and fish and wildlife protection pursuant to § 42-17.1-24; (3) planning for the upland beneficial use and/or disposal of dredged material in areas not under the jurisdiction of the council pursuant to § 46-23-6(2); and (4) cooperating with the coastal resources management council in the development and implementation of comprehensive programs for dredging as provided for in §§ 46-23-6(1)(ii)(H) and 46-23-18.3; and (5) monitoring dredge material management and disposal sites in accordance with the protocols established pursuant to § 46-6.1-5(3) and the comprehensive program provided for in § 46-23-6(1)(ii)(H); no powers or duties granted herein shall be construed to abrogate the powers or duties granted to the coastal resources management council under chapter 23 of title 46, as amended;

(l) To establish minimum standards, subject to the approval of the environmental standards board, relating to the location, design, construction and maintenance of all sewage disposal systems;

(m) To enforce, by such means as provided by law, the standards for the quality of air, and water, and the design, construction and operation of all sewage disposal systems; any order or notice issued by the director relating to the location, design, construction or maintenance of a sewage disposal system shall be eligible for recordation under chapter 13 of title 34. The director shall forward the order or notice to the city or town wherein the subject property is located and the order or notice shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject property is located. Any subsequent transferee of that property shall be responsible for complying with the requirements of the order or notice. Upon satisfactory completion of the requirements of the order or notice, the director shall provide written notice of the same, which notice shall be similarly eligible for recordation. The original written notice shall be forwarded to the city or town wherein the subject property is located and the notice of satisfactory completion shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject property is located. A copy of the written notice shall be forwarded to the owner of the subject property within five (5) days of a request for it, and, in any event, shall be forwarded to the owner of the subject property within thirty (30) days after correction;

(n) To establish minimum standards for the establishment and maintenance of salutary environmental conditions;

(o) To establish and enforce minimum standards for permissible types of septage, industrial waste disposal sites and waste oil disposal sites;

(p) To establish minimum standards subject to the approval of the environmental standards board for permissible types of refuse disposal facilities, the design, construction, operation, and maintenance of disposal facilities; and the location of various types of facilities;

(q) To exercise all functions, powers, and duties necessary for the administration of chapter 19.1 of title 23 entitled "Rhode Island Hazardous Waste Management Act.";

(r) To designate in writing any person in any department of the state government or any official of a district, county, city, town, or other governmental unit, with that official's consent, to enforce any rule, regulation, or order promulgated and adopted by the director under any provision of law, provided, however, that enforcement of powers of the coastal resources management council shall be assigned only to employees of the department of environmental management, except by mutual agreement or as otherwise provided in chapter 23 of title 46.

(s) To issue and enforce such rules, regulations, and orders as may be necessary to carry out the duties assigned to the director and the department by any provision of law; and to conduct such investigations and hearings and to issue, suspend, and revoke such licenses as may be necessary to enforce those rules, regulations, and orders;

(1) Notwithstanding the provisions of § 42-35-9 to the contrary, no informal disposition of a contested licensing matter shall occur where resolution substantially deviates from the original application unless all interested parties shall be notified of said proposed resolution and provided with opportunity to comment upon said resolution pursuant to applicable law and any rules and regulations established by the director.

(t) To enter, examine or survey at any reasonable time such places as the director deems necessary to carry out his or her responsibilities under any provision of law subject to the following provisions:

(1) For criminal investigations, the director shall, pursuant to chapter 5 of title 12, seek a search warrant from an official of a court authorized to issue warrants, unless a search without a warrant is otherwise allowed or provided by law;

(2)(A) All administrative inspections shall be conducted pursuant to administrative guidelines promulgated by the department in accordance with chapter 35 of title 42.

(B) A warrant shall not be required for administrative inspections if conducted under the following circumstances, in accordance with the applicable constitutional standards:

(i) For closely regulated industries;

(ii) In situations involving open fields or conditions that are in plain view;

(iii) In emergency situations;

(iv) In situations presenting an imminent threat to the environment or public health, safety or welfare;

(v) If the owner, operator, or agent in charge of the facility, property, site or location consents; or

(vi) In other situations in which a warrant is not constitutionally required.

(C) Whenever it shall be constitutionally or otherwise required by law, or whenever the director in his or her discretion deems it advisable, an administrative search warrant, or its functional equivalent, may be obtained by the director from a neutral magistrate for the purpose of conducting an administrative inspection. The warrant shall be issued in accordance with the applicable constitutional standards for the issuance of administrative search warrants. The administrative standard of probable cause, not the criminal standard of probable cause, shall apply to applications for administrative search warrants.

(i) The need for, or reliance upon, an administrative warrant shall not be construed as requiring the department to forfeit the element of surprise in its inspection efforts.

(ii) An administrative warrant issued pursuant to this subsection must be executed and returned within ten (10) days of its issuance date unless, upon a showing of need for additional time, the court orders otherwise.

(iii) An administrative warrant may authorize the review and copying of documents that are relevant to the purpose of the inspection. If documents must be seized for the purpose of copying, and the warrant authorizes such seizure, the person executing the warrant shall prepare an inventory of the documents taken. The time, place and manner regarding the making of the inventory shall be set forth in the terms of the warrant itself, as dictated by the court. A copy of the inventory shall be delivered to the person from whose possession or facility the documents were taken. The seized documents shall be copied as soon as feasible under circumstances preserving their authenticity, then returned to the person from whose possession or facility the documents were taken.

(iv) An administrative warrant may authorize the taking of samples of air, water or soil or of materials generated, stored or treated at the facility, property, site or location. Upon request, the department shall make split samples available to the person whose facility, property, site or location is being inspected.

(v) Service of an administrative warrant may be required only to the extent provided for in the terms of the warrant itself, by the issuing court.

(D) Penalties. Any willful and unjustified refusal of right of entry and inspection to department personnel pursuant to an administrative warrant shall constitute a contempt of court and shall subject the refusing party to sanctions, which in the courts discretion may result in up to six (6) months imprisonment and/or a monetary fine of up to ten thousand dollars ($10,000) per refusal.

(u) To give notice of an alleged violation of law to the person responsible therefor whenever the director determines that there are reasonable grounds to believe that there is a violation of any provision of law within his or her jurisdiction or of any rule or regulation adopted pursuant to authority granted to him or her, unless other notice and hearing procedure is specifically provided by that law. Nothing in this chapter shall limit the authority of the attorney general to prosecute offenders as required by law.

(1) The notice shall provide for a time within which the alleged violation shall be remedied, and shall inform the person to whom it is directed that a written request for a hearing on the alleged violation may be filed with the director within ten (10) days after service of the notice. The notice will be deemed properly served upon a person if a copy thereof is served him or her personally, or sent by registered or certified mail to his or her last known address, or if he or she is served with notice by any other method of service now or hereafter authorized in a civil action under the laws of this state. If no written request for a hearing is made to the director within ten (10) days of the service of notice, the notice shall automatically become a compliance order.

(2)(A) Whenever the director determines that there exists a violation of any law, rule, or regulation within his or her jurisdiction which requires immediate action to protect the environment, he or she may, without prior notice of violation or hearing, issue an immediate compliance order stating the existence of the violation and the action he or she deems necessary. The compliance order shall become effective immediately upon service or within such time as is specified by the director in such order. No request for a hearing on an immediate compliance order may be made.

(B) Any immediate compliance order issued under this section without notice and prior hearing shall be effective for no longer than forty-five (45) days, provided, however, that for good cause shown the order may be extended one additional period not exceeding forty-five (45) days.

(3) If a person upon whom a notice of violation has been served under the provisions of this section or if a person aggrieved by any such notice of violation requests a hearing before the director within ten (10) days of the service of notice of violation, the director shall set a time and place for the hearing, and shall give the person requesting that hearing at least five (5) days written notice thereof. After the hearing, the director may make findings of fact and shall sustain, modify, or withdraw the notice of violation. If the director sustains or modifies the notice, that decision shall be deemed a compliance order and shall be served upon the person responsible in any manner provided for the service of the notice in this section.

(4) The compliance order shall state a time within which the violation shall be remedied, and the original time specified in the notice of violation shall be extended to the time set in the order.

(5) Whenever a compliance order has become effective, whether automatically where no hearing has been requested, where an immediate compliance order has been issued, or upon decision following a hearing, the director may institute injunction proceedings in the superior court of the state for enforcement of the compliance order and for appropriate temporary relief, and in that proceeding the correctness of a compliance order shall be presumed and the person attacking the order shall bear the burden of proving error in the compliance order, except that the director shall bear the burden of proving in the proceeding the correctness of an immediate compliance order. The remedy provided for in this section shall be cumulative and not exclusive and shall be in addition to remedies relating to the removal or abatement of nuisances or any other remedies provided by law.

(6) Any party aggrieved by a final judgment of the superior court may, within thirty (30) days from the date of entry of such judgment, petition the supreme court for a writ of certiorari to review any questions of law. The petition shall set forth the errors claimed. Upon the filing of the petition with the clerk of the supreme court, the supreme court may, if it sees fit, issue its writ of certiorari;

(v) To impose administrative penalties in accordance with the provisions of chapter 17.6 of this title and to direct that such penalties be paid into the account established by subsection (z) of this section; and

(w) The following definitions shall apply in the interpretation of the provisions of this chapter:

(1) Director: The term director shall mean the director of environmental management of the state of Rhode Island or his or her duly authorized agent.

(2) Person: The term person shall include any individual, group of individuals, firm, corporation, association, partnership or private or public entity, including a district, county, city, town, or other governmental unit or agent thereof, and in the case of a corporation, any individual having active and general supervision of the properties of such corporation.

(3) Service: (a) Service upon a corporation under this section shall be deemed to include service upon both the corporation and upon the person having active and general supervision of the properties of such corporation.

(b) For purposes of calculating the time within which a claim for a hearing is made pursuant to § 42-17.1-2(u)(1) heretofore, service shall be deemed to be the date of receipt of such notice or three (3) days from the date of mailing of said notice, whichever shall first occur.

(x)(1) To conduct surveys of the present private and public camping and other recreational areas available and to determine the need for and location of such other camping and recreational areas as may be deemed necessary and in the public interest of the state of Rhode Island and to report back its findings on an annual basis to the general assembly on or before March 1 of every year;

(2) Additionally, the director of the department of environmental management shall take such additional steps, including but not limited to, matters related to funding as may be necessary to establish such other additional recreational facilities and areas as are deemed to be in the public interest.

y)(1) To apply for and accept grants and bequests of funds with the approval of the director of administration from other states, interstate agencies and independent authorities, and private firms, individuals and foundations, for the purpose of carrying out his or her lawful responsibilities. The funds shall be deposited as general revenues and appropriations made with the general treasurer in a restricted receipt account created in the Natural Resources Program for funds made available for that program's purposes or in a restricted receipt account created in the Environmental Protection Program for funds made available for that program's purposes.  All expenditures from the accounts shall be subject to appropriation by the general assembly, and shall be expended in accordance with the provisions of the grant or bequest. In the event that a donation or bequest is unspecified or in the event that the trust account balance shows a surplus after the project as provided for in the grant or bequest has been completed, the director may utilize said appropriated unspecified or appropriated surplus funds for enhanced management of the department’s forest and outdoor public recreation areas, or other projects or programs that promote the accessibility of recreational opportunities for Rhode Island residents and visitors.  
           (y)(2) The director shall submit to the House Fiscal Advisor and the Senate Fiscal Advisor, by October 1 of each year, a detailed report on the amount of funds received and the uses made of such funds.

(z) To establish fee schedules by regulation with the approval of the governor for the processing of applications and the performing of related activities in connection with the department's responsibilities pursuant to subdivision (1) of this section, chapter 19.1 of title 23 as it relates to inspections performed by the department to determine compliance with chapter 19.1 and rules and regulations promulgated in accordance therewith, chapter 18.9 of title 23 as it relates to inspections performed by the department to determine compliance with chapter 18.9 and the rules and regulations promulgated in accordance therewith, chapters 19.5 and 23 of title 23; chapter 12 of title 46 insofar as it relates to water quality certifications and related reviews performed pursuant to provisions of the federal Clean Water Act, the regulation and administration of underground storage tanks and all other programs administered under chapter 12 of title 46 and § 2-1-18 et seq., and chapter 13.1 of title 46 insofar as it relates to any reviews and related activities performed under the provisions of the Groundwater Protection Act, and chapter 17.7 of this title insofar as it relates to administrative appeals of all enforcement, permitting and licensing matters to the administrative adjudication division for environmental matters. Two fee ranges shall be required: for "Appeal of enforcement actions", a range of fifty dollars ($50) to one hundred dollars ($100), and for "Appeal of application decisions", a range of five hundred dollars ($500) to ten thousand dollars ($10,000). The monies from the administrative adjudication fees will be deposited as general revenues and the amounts appropriated shall be used for the costs associated with operating the administrative adjudication division.

There is hereby established an account within the general fund to be called the water and air protection program. The account shall consist of sums appropriated for water and air pollution control and waste monitoring programs and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers. All amounts collected under the authority of this subdivision for the sewage disposal system program and fresh waters wetlands program will be deposited as general revenues and the amounts appropriated shall be used for the purposes of administering and operating the programs. The director shall submit to the house fiscal advisor and the senate fiscal advisor by January 15 of each year a detailed report on the amount of funds obtained from fines and fees and the uses made of such funds.

(aa) To establish and maintain a list or inventory of areas within the state worthy of special designation as "scenic" to include but not be limited to certain state roads or highways, scenic vistas and scenic areas, and to make the list available to the public.

(bb) To establish and maintain an inventory of all interests in land held by public and private land trust and to exercise all powers vested herein to insure the preservation of all identified lands.

(1) The director may promulgate and enforce rules and regulations to provide for the orderly and consistent protection, management, continuity of ownership and purpose, and centralized records-keeping for lands, water, and open spaces owned in fee or controlled in full or in part through other interests, rights, or devices such as conservation easements or restrictions, by private and public land trusts in Rhode Island. The director may charge a reasonable fee for filing of each document submitted by a land trust.

(2) The term "public land trust" means any public instrumentality created by a Rhode Island municipality for the purposes stated herein and financed by means of public funds collected and appropriated by the municipality. The term "private land trust" means any group of five (5) or more private citizens of Rhode Island who shall incorporate under the laws of Rhode Island as a nonbusiness corporation for the purposes stated herein, or a national organization such as the nature conservancy. The main purpose of either a public or a private land trust shall be the protection, acquisition, or control of land, water, wildlife, wildlife habitat, plants, and/or other natural features, areas, or open space for the purpose of managing or maintaining, or causing to be managed or maintained by others, the land, water, and other natural amenities in any undeveloped and relatively natural state in perpetuity. A private land trust must be granted exemption from federal income tax under Internal Revenue Code 501c(3) [26 U.S.C. § 501(c)(3)] within two (2) years of its incorporation in Rhode Island or it may not continue to function as a land trust in Rhode Island. A private land trust may not be incorporated for the exclusive purpose of acquiring or accepting property or rights in property from a single individual, family, corporation, business, partnership, or other entity. Membership in any private land trust must be open to any individual subscribing to the purposes of the land trust and agreeing to abide by its rules and regulations including payment of reasonable dues.

(3)(A) Private land trusts will, in their articles of association or their by-laws, as appropriate, provide for the transfer to an organization created for the same or similar purposes the assets, lands and land rights and interests held by the land trust in the event of termination or dissolution of the land trust.

(B) All land trusts, public and private, will record in the public records of the appropriate towns and cities in Rhode Island all deeds, conservation easements or restrictions or other interests and rights acquired in land and will also file copies of all such documents and current copies of their articles of association, their by-laws, and annual reports with the secretary of state, and with the director of the Rhode Island department of environmental management. The director is hereby directed to establish and maintain permanently a system for keeping records of all private and public land trust land holdings in Rhode Island.

(cc) The director will contact in writing, not less often than once every two (2) years, each public or private land trust to ascertain: that all lands held by the land trust are recorded with the director; the current status and condition of each land holding; that any funds or other assets of the land trust held as endowment for specific lands have been properly audited at least once within the two (2) year period; the name of the successor organization named in the public or private land trust's by-laws or articles of association; and any other information the director deems essential to the proper and continuous protection and management of land and interests or rights in land held by the land trust.

In the event that the director determines that a public or private land trust holding land or interest in land appears to have become inactive, he or she shall initiate proceedings to effect the termination of the land trust and the transfer of its lands, assets, land rights, and land interests to the successor organization named in the defaulting trust's by-laws or articles of association or to another organization created for the same or similar purposes. Should such a transfer not be possible, then the land trust, assets, and interest and rights in land will be held in trust by the state of Rhode Island and managed by the director for the purposes stated at the time of original acquisition by the trust. Any trust assets or interests other than land or rights in land accruing to the state under such circumstances will be held and managed as a separate fund for the benefit of the designated trust lands.

(dd) Consistent with federal standards, issue and enforce such rules, regulations and orders as may be necessary to establish requirements for maintaining evidence of financial responsibility for taking corrective action and compensating third parties for bodily injury and property damage caused by sudden and non-sudden accidental releases arising from operating underground storage tanks.

(ee) To enforce, by such means as provided by law, the standards for the quality of air, and water, and the location, design, construction and operation of all underground storage facilities used for storing petroleum products or hazardous materials; any order or notice issued by the director relating to the location, design construction, operation or maintenance of an underground storage facility used for storing petroleum products or hazardous materials shall be eligible for recordation under chapter 13 of title 34. The director shall forward the order or notice to the city or town wherein the subject facility is located, and the order or notice shall be recorded in the general index by the appropriate municipal officer in the land evidence records in the city or town wherein the subject facility is located. Any subsequent transferee of that facility shall be responsible for complying with the requirements of the order or notice. Upon satisfactory completion of the requirements of the order or notice, the director shall provide written notice of the same, which notice shall be eligible for recordation. The original written notice shall be forwarded to the city or town wherein the subject facility is located, and the notice of satisfactory completion shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject facility is located. A copy of the written notice shall be forwarded to the owner of the subject facility within five (5) days of a request for it, and, in any event, shall be forwarded to the owner of the subject facility within thirty (30) days after correction.

SECTION 2.  This article shall take effect upon passage.

 

ARTICLE 15

RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND CARRIERS

SECTION 1. Section 39-2-1.4 of the General Laws in Chapter 39-2 entitled "Duties of Utilities and Carriers" is hereby amended to read as follows:

39-2-1.4. Reasonable backup or supplemental rates. -- (a) Electricity produced by cogeneration and small power production can be of benefit to the public as part of the total energy supply of the entire electric grid of the state or consumed by a cogenerator or small power producer. Subject to compliance with applicable rules governing such service, public utilities shall provide transmission or distribution service to enable a retail customer to transmit electrical power generated by the customer at one location to the customer's facilities at another location, if the commission finds that the provision of this service, and the charges, terms, and other conditions associated with the provision of this service, are not likely to result in higher cost electric service to the utility's general body of retail and wholesale customers or adversely affect the adequacy or reliability of electric service to all customers.

 (b) Each electric distribution company shall provide backup and supplemental service to any customer who is self-generating electricity and meets reasonable interconnection requirements designed to protect the distribution and transmission system. The commission shall ensure that backup and supplemental rates made, exacted, demanded or collected by any public utility from a customer who is self-generating shall be just and reasonable and may not be unduly discriminatory. Any backup and supplemental rate tariffs in effect as of May 2002 may remain in effect as designed through December 31, 2004. Commencing January 1, 2005, the backup and supplemental rates shall be cost based but may be discounted as provided for in subsection (c) of this section.  Provided, however, that the John O. Pastore Center power plant shall be exempt from said backup or supplemental rates from July 1, 2003 to June 30, 2004.

 (c) Notwithstanding the rate design criteria set forth in subsection (b) of this section, the commission may permit or require discounted backup distribution service rates in order to encourage economically efficient cogeneration or small power production projects if it finds these discounts to be in the public interest, provided, however, that any revenue not recovered by the electric distribution company as a result of these discounted distribution rates shall be accounted for and recovered in the rates assessed on all customers. The commission shall, in determining the public interest in distributed generating facilities, consider reduced environmental impacts, increased energy efficiency, reduced transmission losses and congestion, effects on electric system reliability and other factors the commission may deem relevant.

 (d) The provisions of this section shall be effective as of January 1, 2005.

SECTION 2. This article shall take effect on July 1, 2003.

 

ARTICLE 16

                                     RELATING TO STATE AID

SECTION 1. Section 45-13-1 of the General Laws in Chapter 45-13 entitled “State Aid” is hereby amended to read as follows:

45-13-1.  Apportionment of annual appropriation for state aid. -- (a) As used in this chapter, the following words and terms have the following meanings:

(1) "Population" means the most recent estimates of population for each city and town as reported by the United States department of commerce, bureau of the census.

(2) "Income" means the most recent estimate of per-capita income for a city, town or county as reported by the United States department of commerce, bureau of the census.

(3) "Tax effort" means the total taxes imposed by a city or town for public purposes or the totals of those taxes for the cities or towns within a county (except employee and employer assessments and contributions to finance retirement and social insurance systems and other special assessments for capital outlay) determined by the United States secretary of commerce for general statistical purposes and adjusted to exclude amounts properly allocated to education expenses.

(4) "Reference year" means the second fiscal year preceding the beginning of the fiscal year in which the distribution of state aid to cities and towns is made.

(b) Aid to cities and towns shall be apportioned as follows: For each county, city or town, let R be the tax effort divided by the square of per capita income, i.e., R = (tax effort)/(income x income).

The amount to be allocated to the counties shall be apportioned in the ratio of the value of R for each county divided by the sum of the values of R for all five (5) counties.

The amount to be allocated for all cities and for all towns within a county shall be the allocation for that county apportioned proportionally to the total tax effort of the towns and cities in that county.

The amount to be allocated to any city or town is the amount allocated to all cities or all towns within the county apportioned in the ratio of the value of R for that city (or town) divided by the sum of the values of R for all cities (or all towns) in that county; provided, further, that no city or town shall receive an entitlement in excess of one hundred forty-five percent (145%) of that city or town's population multiplied by the average per capita statewide amount of the annual appropriation for state aid to cities and towns. Any excess entitlement shall be allocated to the remainder of the cities and towns in the respective county in accordance with the provisions of this section.

For fiscal year 2004, notwithstanding the provisions of subsection (a), aid calculations shall be based on a blended rate of ninety percent (90%) of the data from the 1990 census and ten percent (10%) of the data from the 2000 census.  In each of the succeeding nine (9) fiscal years, the calculations shall be based on a blended rate that increases the percentage of data utilized from the 2000 census by ten percent (10%) from the previous year and decreases the percentage of the data utilized from the 1990 census by ten percent (10%) from the previous year.

(c) The total amount of aid to be apportioned pursuant to subsection (b) above shall be specified in the annual appropriation act of the state and shall be equal to the following:

(i) For fiscal years ending June 30, 1994 through June 30, 1998, the total amount of aid shall be based upon one percent (1%) of total state tax revenues in the reference year.

(ii) For the fiscal year ending June 30, 1999, the total amount of aid shall be based upon one and three-tenths percent (1.3%) of total state tax revenues in the reference year.

(iii) For the fiscal year ending June 30, 2000, the total amount of aid shall be based upon one and seven-tenths percent (1.7%) of total state tax revenues in the reference year.

(iv) For the fiscal year ending June 30, 2001, the total amount of aid shall be based upon two percent (2.0%) of total state tax revenues in the reference year.

(v) For the fiscal year ending June 30, 2002, the total amount of aid shall be based upon two and four-tenths percent (2.4%) of total state tax revenues in the reference year.

(vi) For the fiscal year ending June 30, 2003, the total amount of aid shall be based upon two and four-tenths percent (2.4%) of total state tax revenues in the reference year.

(vii) For the fiscal year ending June 30, 2004, the total amount of aid shall be based upon two and seven-tenths percent (2.7%) of total state tax revenues in the reference year.

(viii) For the fiscal year ending June 30, 2005, the total amount of aid shall be based upon three percent (3.0%) of total state tax revenues in the reference year.

(ix) For the fiscal year ending June 30, 2006, the total amount of aid shall be based upon three and four-tenths percent (3.4%) of total state tax revenues in the reference year.

(x) For the fiscal year ending June 30, 2007, the total amount of aid shall be based upon three and seven-tenths percent (3.7%) of total state tax revenues in the reference year.

(xi) For the fiscal year ending June 30, 2008, the total amount of aid shall be based upon four and one-tenths percent (4.1%) of total state tax revenues in the reference year.

(xii) For the fiscal year ending June 30, 2009, the total amount of aid shall be based upon four and four-tenths percent (4.4%) of total state tax revenues in the reference year.

(xiii) For the fiscal year ending June 30, 2010, the total amount of aid shall be based upon four and seven-tenths percent (4.7%) of total state tax revenues in the reference year.

(d) The assent of two-thirds (2/3) of the members elected to each house of the general assembly shall be required to repeal or amend this section.

SECTION 2. This article shall take effect on July 1, 2003.

 

ARTICLE 17

Relating To Licensing of child care providers

SECTION 1. Sections 42-72.1-1 and 42-72.1-5 of the General Laws in Chapter 42-72.1 entitled "Licensing and Monitoring of Child Care Providers and Child-Placing Agencies" are hereby amended to read as follows:

42-72.1-1. Statement of purpose. -- (a) The director of the department of children, youth, and families, pursuant to section 42-72-5(b)(7) and section 42-72-5(b)(24), shall establish within the department a unit to license and monitor child care providers and child-placing agencies, to protect the health, safety and well being of children temporarily separated from or being cared for away from their natural families.

 (b) Services for children requiring licensure under this chapter shall include all child care providers and child placing agencies which offer services within the state, except as defined in section 42-72.1-5.

42-72.1-5. General licensing provisions. -- The following general licensing provisions shall apply:

 (1) A license issued under this chapter is not transferable and applies only to the licensee and the location stated in the application and remains the property of the department. A license shall be publicly displayed. A license shall be valid for one year from the date of issue and upon continuing compliance with the regulations, except that a certificate issued to a family day care home, a license issued to a foster parent, and/or a license issued to a program for mental health services for “seriously emotionally disturbed children” as defined in section 42-72-5(b)(24) shall be valid for two (2) years from date of issue.

 (2) A licensee shall comply with applicable state fire and health safety standards.

 (3) The department may grant a provisional license to an applicant, excluding any foster parent applicant, who is not able to demonstrate compliance with all of the regulations because the program or residence is not in full operation; however, the applicant must meet all regulations that can be met in the opinion of the administrator before the program is fully operational. The provisional license shall be granted for a limited period not to exceed six (6) months and shall be subject to review every three (3) months.

 (4) The department may grant a probationary license to a licensee who is temporarily unable to comply with a rule or rules when the noncompliance does not present an immediate threat to the health and well-being of the children, and when the licensee has obtained a plan approved by the administrator to correct the areas of noncompliance within the probationary period. A probationary license shall be issued for up to twelve (12) months; it may be extended for an additional six (6) months at the discretion of the administrator. A probationary license that states the conditions of probation may be issued by the administrator at any time for due cause. Any prior existing license is invalidated when a probationary license is issued. When the probationary license expires, the administrator may reinstate the original license to the end  of  its  term, issue a new license or revoke the license.

 (5) The administrator will establish criteria and procedure for granting variances as part of the regulations.

 (6) The above exceptions (probationary and provisional licensing and variances) do not apply to and shall not be deemed to constitute any variance from state fire and health safety standards.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 18

 RELATING TO GENERAL PUBLIC ASSISTANCE

SECTION 1.  Hardship Contingency Fund - FY 2004 – Out of the general revenue sum appropriated to the department of human services in Article 1, the sum of five hundred ninety-six thousand dollars ($596,000) may be used for the purposes of a hardship contingency fund, subject to the limitations hereinafter provided.  The state controller is hereby authorized and directed to draw his or her order upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of duly authenticated vouchers.  From the aforesaid appropriation for hardship contingency, the director of the department of human services, in his or her sole discretion, may authorize payments of cash assistance benefits up to two hundred dollars ($200) per month per eligible individual upon a showing of hardship by an individual who is eligible for general public assistance medical benefits under section 40-6-3.1; provided, however, that individuals who are determined eligible for medical assistance (“Medicaid”) under Title XIX of the Social Security Act, 42 U.S.C. Section 1396 et seq., or who are determined  eligible to receive an interim cash assistance payment for the disabled pursuant to section 40-6-28, shall not be eligible for assistance under this section.  The director shall not be required to promulgate any new, additional or separate rules or regulations in connection with the disbursement of payments from the contingency fund created hereby.

SECTION 2.  This article shall take effect as of July 1,2003.

ARTICLE 19

RELATING TO HOSPITAL UNCOMPENSATED CARE

SECTION 1.  Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled “Uncompensated Care” are hereby amended to read as follows:

40-8.3-2.  Definitions. -- As used in this chapter:

(1) "Base year" means for the purpose of calculating a disproportionate share payment for any fiscal year ending after September 30, 2000 2003, the period from October 1, 1998 2000 through September 30, 1999 2001.

(2) "Medical assistance inpatient utilization rate for a hospital" means a fraction (expressed as a percentage) the numerator of which is the hospital's number of inpatient days during the base year attributable to patients who were eligible for medical assistance during the base year and the denominator of which is the total number of the hospital's inpatient days in the base year.

(3) "Participating hospital" means any nongovernment and nonpsychiatric hospital that: (i) was licensed as a hospital in accordance with chapter 17 of title 23 during the base year, (ii) achieved a medical assistance inpatient utilization rate of at least one percent (1%) during the base year, and (iii) continues to be licensed as a hospital in accordance with chapter 17 of title 23 during the payment year.

(4) "Uncompensated care costs" means, as to any hospital, the sum of: (i) the cost incurred by such hospital during the base year for inpatient or outpatient services attributable to charity care (free care and bad debts) for which the patient has no health insurance or other third-party coverage less payments, if any, received directly from such patients and (ii) the cost incurred by such hospital during the base year for inpatient or out-patient services attributable to medicaid beneficiaries less any medicaid reimbursement received therefor; multiplied by the uncompensated care index.

(5) "Uncompensated care index" means the annual percentage increase for hospitals established pursuant to § 27-19-14 for each year after the base year, up to and including the payment year, provided, however, that the uncompensated care index for the payment year ending September 30, 2001 shall be deemed to be four and seventy-five hundredths percent (4.75%), that the uncompensated care index for the payment year ending September 30, 2002 shall be deemed to be four and nine tenths percent (4.9%) five and one-tenth percent (5.1%), and that the uncompensated care index for the payment year ending September 30, 2003 shall be deemed to be five and twenty-five hundredths percent (5.25%) five and ninety hundredths percent (5.90%), and that the uncompensated care index for the payment year ending September 30, 2004 shall be deemed to be five and twenty-five hundredths percent (5.25%).

40-8.3-3.  Implementation. -- (a) For the fiscal year commencing on October 1, 2002 2003 and ending September 30, 2003 2004, each participating hospital shall be paid by the department of human services on or before October 30, 2002 2003, a disproportionate share payment equal to the lesser of: (1) the hospital's uncompensated care costs adjusted by the uncompensated care index; or (2) a percentage equal to six and seventy-five hundredths percent (6.75%) (6.00%) of the dollar amount of the difference between: (i) all chargeable services in the hospital's base year and (ii) the sum of charity care charges, bad debt expenses, and contractual allowances in the hospital's base year; provided, however, that the disproportionate share payments are expressly conditioned upon approval on or before October 30, 2002 2003 by the Secretary of the U.S. Department of Health and Human Services, or his or her authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2003 2004 for the disproportionate share payments. 

(b) No provision is made pursuant to this chapter for disproportionate share hospital payments to participating hospitals for uncompensated care costs that are related to graduate medical education programs.

SECTION 2.  This article shall take effect upon passage.

 

 

ARTICLE 20

Relating to Public library services

 

SECTION 1. Section 29-6-2 of the General Laws in Chapter 29-6 entitled "State Aid to Libraries" is hereby amended to read as follows:

29-6-2. Public library services. -- For each city or town, the state's share to support local public library services shall be equal to at least twenty-five percent (25%) of the amount appropriated and expended in the second preceding fiscal year by the city or town from local tax revenues and as to only the Providence public library, funds from the Providence public library’s endowment that supplement the municipal appropriation; provided, however, that as to Providence public library, the state in any year shall not be obligated to match any amount from the Providence public library’s endowment that exceeds six percent (6%) of the three (3) year average market value, calculated at the end of the calendar year, of the investments in the endowment. The amount of the grant payable to each municipality in any year in accordance with this section shall be reduced proportionately in the event that the total of those grants in any year exceeds the amount appropriated that year for the purposes of this section.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 21

Relating To Special Program for Care of Severely Disabled Elderly Residents Who Need Nursing Facility Services

SECTION 1. Title 40 of the General Laws entitled  "Human Services" is hereby amended by adding thereto the following chapter:

CHAPTER 8.6
SPECIAL PROGRAM FOR CARE OF SEVERELY DISABLED ELDERLY RESIDENTS WHO NEED NURSING FACILITY SERVICES

40-8.6-1. Special pilot program for care of severely disabled elderly residents who need nursing facility services. – (a) Purpose.  There is hereby established a special pilot program during fiscal year 2004 to be administered by the department of human services to provide payment for nursing facility services for certain low-income elderly Rhode Island residents who are ineligible for federal and state medical assistance coverage.

(b) Eligibility.  To be eligible for payment from the program the individual must be:

(1) age sixty-five (65) or older;

(2) legally present in the United States and a resident of the state of Rhode Island;

(3) determined to meet all eligibility requirements of the federal Medical Assistance Program (Title XIX of the Social Security Act, 42 USC Sec. 1396 et seq.) but for the citizenship or alienage criteria;

(4) determined to be ineligible for RIGL section 40-8-1 provisions of state-funded medical assistance for aliens; and

(5) certified by the department of human services to be in need of nursing facility services.

(c) Continuation of coverage.  Eligibility shall be reviewed periodically and renewed as long as the individual continues to meet the criteria.

(d) Payment to nursing facility.  The department shall make payments to the nursing facility in which an eligible individual is residing in the same amount as the payment for nursing facility services under the medical assistance program.

40-8.6-2. Appropriation. – The sum of three hundred thousand dollars ($300,000) is hereby appropriated to the department of human services for the purposes of this chapter.  This appropriation shall be used to fund payment of five (5) nursing facility placements to provide nursing facility services for eligible individuals.  To the extent that more than five (5) individuals are determined to be eligible at any one (1) time, the department shall maintain a waiting list to fill the next nursing facility placement to become available upon the death, discharge, or ineligibility of the individual currently holding that placement.  The department shall establish rules and regulations regarding which nursing facility or facilities may provide services as part of this pilot program, waiting list procedures, and any other administrative functions that are necessary for the conduct of this program.

40-8.6-3. Report. – The department shall issue a report to the long-term care coordinating council, the general assembly, the senate fiscal advisor, and the house fiscal advisor on the status of this program on or before April 15, 2004.  The report shall include at least the number of people served, total expenditures to date, and a recommendation to discontinue, continue, expand or contract the program based on the state's experience through March 31, 2004.

SECTION 2. This article shall take effect on July 1, 2003.

 

ARTICLE 22

Relating To Medical Assistance - RIte Care

SECTION 1.  In establishing the annual appropriation in Article 1 for state fiscal year 2004 for the RIte Care program in accordance with sections 40-8.4-8 and 42-12.3-11, the general assembly has provided funding for limited increases in risk-based health care premiums. The general assembly hereby authorizes and directs the department of human services to enter into, modify or amend RIte Care health plan contracts for the period July 1, 2003 through June 30, 2004 to provide for risk-based premium increases, including SOBRA, based on a formula that shall not exceed the DRI Northeast Medical Index for general medical expenses.

SECTION 2. This article shall take effect upon passage.

ARTICLE 23

Relating To Real Estate Licenses and Fees

SECTION 1.  Sections 5-20.5-4 and 5-20.5-11 of the General Laws in Chapter 5-20.5 entitled “Real Estate Brokers and Salespersons” are hereby amended to read as follows:

5-20.5-4.  Examination of applicants – Examination fee – Licensing without examination. -- (a) The director requires any applicant for a real estate broker's or salesperson's license to submit to and pass a written examination to show the applicant's knowledge of reading, writing, spelling, elementary arithmetic, and in general the statutes relating to real property, deeds, mortgages, leases, contracts, and agency. The director deems that the uniform portion of the Rhode Island real estate examination has been passed if the applicant has a current real estate license from a state which allows a similar reciprocal waiver for persons holding a current Rhode Island broker's or salesperson's license and has been licensed for a period of not less than two (2) years; provided, that the applicant must be tested for the remainder of the Rhode Island real estate examination as administered by the department of business regulation. An applicant for a real estate broker's or salesperson's license, prior to the taking of the examination, pays to the director an examination fee, the cost of which is limited to the charge as designated by the appropriate testing service's contract with the department of business regulation.

(b) The applicant for a broker's license must also submit satisfactory proof that he or she has been engaged full time as a real estate salesperson for at least one year prior to the date of application, except that the period is waived if the applicant has received a baccalaureate degree with a major in real estate, from an accredited college or university; or has successfully completed at least ninety (90) hours of classroom study in a school as defined in § 5-20.5-19, or equivalent in a correspondence course offered by an extension department of an accredited college or university. The director may require any other proof, through the application or otherwise, that he or she desires with regard to the paramount interests of the public, as to the honesty, trustworthiness, integrity, good reputation, and competency of the applicant.

(c) The director shall notify applicants of the result of the examination within thirty (30) days of the date of the examination. Any successful applicant who fails to remit the original license fee as provided in § 5-20.5-11 within one year of the date of that examination is required by the director to re-submit to and pass a written examination as provided in subsection (a).

(d) When an attorney-at-law licensed by the supreme court of the state desires to have a real estate broker's license or a real estate salesperson's license, the attorney, by application, and upon payment of the applicable fee as provided in § 5-20.5-11, is granted a license without examination.

(e) A certificate of licensure is issued by the real estate division of the department of business regulation within thirty (30) days after it is requested at a cost of not more than five dollars ($5.00) fifteen dollars ($15.00) for each certificate issued.

5-20.5-11.  Fees and license renewals. -- (a) The following fees are charged by the director:

(1) For each application, a fee of ten dollars ($10.00);

(2) For each examination a fee, the cost of which is limited to the charge as designated by the appropriate testing service's contract with the department of business regulation;

(3) For each original broker's license issued, a fee of sixty dollars ($60.00) eighty-five dollars ($85.00) per annum for the term of the license and for each annual renewal of the license, a fee of sixty dollars ($60.00) eighty-five dollars ($85.00) per annum for the term of renewal. The total fees for the term of initial licensure and of renewal are paid at the time of application for the license;

(4) For each original salesperson's license issued, a fee of forty dollars ($40.00) sixty-five dollars ($65.00) per annum for the term of the license and for each renewal of the license, a fee of forty dollars ($40.00) sixty-five dollars ($65.00) per annum for the term of the license. The total fees for the term of initial licensure and of renewal are paid at the time of application for the license.

(5) For each change from one broker to another broker by a salesperson, or a broker, a fee of five dollars ($5.00) fifteen dollars ($15.00), to be paid by the salesperson or the broker;

(6) For each duplicate license, where a license is lost or destroyed and affidavit is made of that fact, a fee of two dollars ($2.00) ten dollars ($10.00);

(7) For each duplicate pocket card, where the original pocket card is lost or destroyed and affidavit is made of that fact, a fee of two dollars ($2.00) ten dollars ($10.00);

(8) For each broker's license reinstated after its expiration date, a late fee of fifteen dollars ($15.00) sixty-five dollars ($65.00), in addition to the required renewal fee;

(9) For each salesperson's license reinstated after its expiration date, a late fee of ten dollars ($10.00) sixty dollars ($60.00) in addition to the required renewal fee.

(b) Every licensed real estate broker and salesperson who desires to renew a license for the succeeding year term applies for the renewal of the license upon a form furnished by the director and containing whatever information is required by the director. Any renewal of a license is subject to the same provisions covering issuance, suspension, and revocation of any license originally issued. At no time shall any license be renewed without examination if the license has expired beyond a period of one year.

SECTION 2.  This article shall take effect upon passage.           

ARTICLE 24

Relating To Securities Registration fees

SECTION 1. Sections 7-11-305, 7-11-307, and 7-11-401 of the General Laws in Chapter 7-11 entitled "Rhode Island Uniform Securities Act" are hereby amended to read as follows:

7-11-305.  Provisions applicable to registration generally. -- (a) A registration statement may be filed by the issuer, any other person on whose behalf the offering is to be made, or a registered broker dealer.

(b) Except as provided in subsection (b)(2), a A person filing a registration statement pays shall pay a nonrefundable fee of one-tenth of one percent (0.1%) of the maximum aggregate offering price at which the registered securities are to be offered in this state, but not less than three hundred dollars ($300) or more than one thousand dollars ($1,000).

(2) An open end management company, a face amount certificate company, or a unit investment trust, as defined in the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., may register an indefinite amount of securities under a registration statement. At the time of filing, the registrant pays a nonrefundable fee of three hundred dollars ($300) and within sixty (60) days after the registrant's fiscal year during which its registration statement is effective, pays a non refundable fee of three hundred dollars ($300) or files a report on a form the director, by rule, adopts, specifying its sale of securities to persons in this state during the fiscal year and pays a fee of one-tenth of one percent (0.1%) of the aggregate sales price of the securities sold to persons in this state, but the latter fee is not less than three hundred dollars ($300) or more than one thousand dollars ($1,000).

(c) Except as permitted otherwise by subsection (b)(2), a A registration statement must specify the amount of securities to be offered in this state and the states in which a registration statement or similar document in connection with the offering has been or is to be filed and any adverse order, judgment, or decree entered by the securities agency or administrator in any state or by a court or the securities and exchange commission in connection with the offering.

(d) A document filed under this chapter or a predecessor act within five (5) years before the filing of a registration statement may be incorporated by reference in the registration statement if the document is currently accurate.

(e) The director may permit by rule or order the omission of any item of information or document from a registration statement.

(f) In the case of a nonissuer offering, the director may not require information under subsection (m) or § 7-11-304 unless it is known to the person filing the registration statement or to the person on whose behalf the offering is to be made, or can be furnished by the person without unreasonable effort or expense.

(g) In the case of a registration under § 7-11-303 or § 7-11-304 by an issuer who has no public market for its shares or no significant earnings from continuing operations during the last five (5) years, or any shorter period of its existence, the director may require by rule or order as a condition of registration that the following securities be deposited in escrow for not more than three (3) years:

(1) Securities issued to a promoter within the three (3) years immediately before the offering or to be issued to a promoter for a consideration substantially less than the offering price; and

(2) Securities issued to a promoter for a consideration other than cash, unless the registrant demonstrates that the value of the non-cash consideration received in exchange for the securities is substantially equal to the offering price for the securities.

(h) The director may determine by rule or order the conditions of an escrow required under subsection (g), but the director may not reject a depository solely because of location in another state.

(i) The director may require by rule or order as a condition of registration under § 7-11-303 or § 7-11-304 that the proceeds from the sale of the registered securities in this state be impounded until the issuer receives a specified amount from the sale of the securities. The director may by rule or order determine the conditions of an impound arrangement required under this subsection, but the director may not reject a depository solely because of location in another state.

(j) If securities are registered under § 7-11-302 or § 7-11-303, the prospectus filed under the Securities Act of 1933 15 U.S.C. § 77a et seq. must be delivered to each purchaser in accordance with the prospectus delivery requirements of the Securities Act of 1933, 15 U.S.C. § 77a et seq.

(k) If securities are registered under § 7-11-304, an offering document containing information the director designates by rule or order must be delivered to each purchaser with or before the earliest of:

(1) The first written offer to sell made to the purchaser by or for the account of the issuer or another person on whose behalf the offering is being made, or by an underwriter or broker dealer who is offering part of an unsold allotment or subscription taken by it as a participant in the distribution;

(2) Confirmation of a sale made by or for the account of a person named in subsection (1);

(3) Payment pursuant to a sale; or

(4) Delivery pursuant to a sale.

(l) A registration statement remains effective for one year after its effective date unless the director extends the period of effectiveness by rule or order. All outstanding securities of the same class as the registered securities are considered to be registered for the purpose of a nonissuer transaction while the registration statement is effective, unless the director, by rule or order, provides otherwise. A registration statement may not be withdrawn after its effective date if any of the securities registered have been sold in this state, unless the director, by rule or order, provides otherwise. No registration statement is effective while a stop order is in effect under § 7-11-306(a).

(m) During the period that an offering is being made pursuant to an effective registration statement, the director may require by rule or order the person who filed the registration statement to file reports not more often than quarterly to keep reasonably current the information contained in the registration statement and to disclose the progress of the offering.

(n) A registration statement filed under § 7-11-302 or § 7-11-303 may be amended after its effective date to increase the securities specified being offered and sold. The amendment becomes effective upon filing of the amendment and payment of an additional filing fee, calculated in the manner specified in subsection (b), with respect to the additional securities to be offered and sold. The effectiveness of the amendment relates back to the date of sale of the additional securities being registered.

(o) A registration statement filed under § 7-11-304 may be amended after its effective date to increase the securities specified to be offered and sold, if the public offering price and underwriters' discounts and commissions are not changed from the respective amounts of which the director was informed. The amendment becomes effective when the director so orders and relates back to the date of sale of the additional securities being registered. A person filing an amendment pays an additional filing fee equal to two (2) times the fee otherwise payable, calculated in the manner specified in subsection (b), regarding the additional securities to be offered and sold.    

7-11-307.  Federal covered securities. -- (a) The director may require by rule or order the filing of any or all of the following documents with respect to a covered security under § 18(b)(2) of the Securities Act of 1933, 15 U.S.C. § 77r(b)(2):

(1) Prior to the initial offer of a federal covered security in this state, all documents that are part of a current federal registration statement filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933, 15 U.S.C. § 77a et seq. or, in lieu of filing the registration statement, a notice as prescribed by the director by rule or otherwise, together with a consent to service of process signed by the issuer and with a nonrefundable fee of one-tenth of one percent (0.1%) of the maximum aggregate offering price at which the federal covered securities are to be offered in this state, but not less than three hundred dollars ($300) or more than one thousand dollars ($1,000).

(2) An open end management company, a face amount certificate company, or a unit investment trust, as defined in the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., may file a notice for an indefinite amount of securities. The issuer, at the time of filing, pays shall pay a nonrefundable fee of three hundred dollars ($300) and within sixty (60) days after the issuer's fiscal year, during which its federal registration statement is effective, pays a nonrefundable fee of three hundred dollars ($300) or files a report on a form the director adopts by rule, specifying its sale of securities to persons in this state during the fiscal year and pays a fee of one-tenth of one percent (0.1%) of the aggregate sales price of the securities sold to persons in this state. The latter fee shall not be less than three hundred dollars ($300) or more than one thousand dollars ($1,000).

(3) After the initial offer of the federal covered security in this state, all documents that are part of an amendment to a current federal registration statement filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933, are filed concurrently with the director.

(4) Unless otherwise extended by the director, an initial notice filing under this subsection is effective for one year commencing upon the date the notice or registration statement, as applicable, is received by the director unless a later date is indicated by the issuer. A notice filing may be renewed by filing a renewal notice as prescribed by the director and paying a renewal fee of one-tenth of one percent (0.1%) of the aggregate sales price of the securities sold to persons in this state. The latter fee shall not be less than three hundred dollars ($300) or more than one thousand dollars ($1,000).

(b) Regarding any security that is a covered security under § 18(b)(4)(D) of the Securities Act of 1933, 15 U.S.C. § 77r(b)(4)(D), the director may by rule or otherwise require the issuer to file a notice on SEC Form D and a consent to service of process signed by the issuer no later than fifteen (15) days after the first sale of the federal covered security in this state, together with Form U-2, Form D and a nonrefundable fee of three hundred dollars ($300).

(c) The director may by rule or otherwise require the filing of any document filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933, 15 U.S.C. § 77a et seq., with respect to a covered security under § 18(b)(3) or (4) of the Securities Act of 1933, 15 U.S.C. § 77r(b)(3) or (4), together with a notice and fees as defined in subparagraph (a)(1).

(d) The director may issue a stop order suspending the offer and sale of a federal covered security, except a covered security under § 18(b)(1) of the Securities Act of 1933, 15 U.S.C. § 77r(b)(1), if the director finds that (1) the order is in the public interest and (2) there is a failure to comply with any condition established under this section.

(e) Notwithstanding the provisions of this section, until October 11, 1999, the director may require the registration of any federal covered security for which the fees required by this section have not been paid promptly following written notification from the director to the issuer of the nonpayment or underpayment of the fees. An issuer is considered to have promptly paid the fees if they are remitted to the director within fifteen (15) days following the person's receipt of written notification from the director.

(f) The director may by rule or order waive any or all of the provisions of this section.

7-11-401.  Exempt securities. -- The following securities are exempt from §§ 7-11-301 and 7-11-404:

(1) A security, including a revenue obligation, issued, insured, or guaranteed by the United States, an agency or corporate or other instrumentality of the United States, an international agency or corporate or other instrumentality of which the United States and one or more foreign governments are members, a state, a political subdivision of a state, or an agency or corporate or other instrumentality of one or more states or their political subdivisions; or a certificate of deposit for any of the foregoing, but this exemption does not include a security payable solely from revenues to be received from a nongovernmental industrial or commercial enterprise unless the payments are insured or guaranteed by a person described as the issuer, insurer or guarantor of securities under subdivision (2), (3), (4), (5), (7), or (8) of this section, or unless the revenues from which the payments are to be made are a direct obligation of a person;

(2) A security issued, insured, or guaranteed by Canada, a Canadian province or territory, a political subdivision of Canada or a Canadian province or territory, an agency or corporation or other instrumentality of one or more of the foregoing, or any other foreign government or governmental combination or entity with which the United States maintains diplomatic relations, if the security is recognized as a valid obligation by the issuer, insurer, or guarantor;

(3) A security issued by and representing an interest in or a direct obligation of, or guaranteed by, a depository institution if the deposit or share accounts of the depository institution are insured by the federal deposit insurance corporation, the federal savings and loan insurance corporation, the national credit union share insurance fund, or a successor to the applicable agency authorized by federal law;

(4) A security issued by and representing an interest in or a direct obligation of, or insured or guaranteed by, an insurance company organized under the laws of any state and authorized to do business in this state;

(5) A security issued or guaranteed by a railroad, other common carrier, public utility, or holding company which is:

(i) Subject to the jurisdiction of the interstate commerce commission;

(ii) A registered holding company under the Public Utility Holding Company Act of 1935, 15 U.S.C. § 79 et seq. or a subsidiary of a registered holding company within the meaning of that act;

(iii) Regulated as to its rates and charges by a governmental authority of the United States or a state; or

(iv) Regulated as to the issuance or guarantee of the security by a governmental authority of the United States, a state, Canada, or a Canadian province or territory;

(6) Equipment trust certificates as to equipment leased or conditionally sold to a person, if securities issued by the person would be exempt under this section;

(7) A security listed or approved for listing upon notice of issuance on a national securities exchange registered under § 6 of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq.; any other security of the same issuer which is of senior or substantially equal rank; a security called for by subscription right or warrant so listed or approved; or a warrant or right to purchase or subscribe to any of the securities in this subdivisions;

(8) A security designated or approved for designation upon notice of issuance as a national market system security by the national association of securities dealers, inc.; any other security of the same issuer which is of senior or substantially equal rank; a security called for by subscription right or warrant so designated; or a warrant or a right to purchase or subscribe to any of the securities in this subdivision;

(9) An option issued by a clearing agency registered under the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., other than an off exchange futures contract or substantially similar arrangement, if the security, currency, commodity, or other interest underlying the option:

(i) Is registered under § 7-11-302, 7-11-303, or 7-11-304;

(ii) Is exempt under this section; or

(iii) Is not otherwise required to be registered under this chapter;

(10) A security issued by a person organized and operated not for private profit but exclusively for a religious, educational, benevolent, charitable, fraternal, social, athletic, or reformatory purpose, or as a chamber of commerce or trade or professional association;

(11) A promissory note, draft, bill of exchange, or bankers' acceptance that evidences an obligation to pay cash within nine (9) months after the date of issuance, exclusive of days of grace, is issued in denominations of at least fifty thousand dollars ($50,000) and receives a rating in one of the three (3) highest rating categories from a nationally recognized statistical rating organization; or a renewal of an obligation that is likewise limited, or a guarantee of an obligation or of a renewal;

(12) A security issued in connection with an employee's stock purchase, savings, option, profit sharing, pension, or similar employees' benefit plan;

(13) A membership or equity interest in, or a retention certificate or like security given in lieu of a cash patronage dividend issued by, a cooperative organized and operated as a nonprofit membership cooperative under the cooperative laws of any state if not traded to the public;

(14) A security issued by an issuer registered as an open end management investment company or unit investment trust pursuant to § 8 of the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq. if:

(i) The issuer is advised by an investment adviser that is a depository institution exempt from registration under the Investment Advisers Act of 1940, 15 U.S.C. § 80b-1 et seq. or that is currently registered as an investment adviser and has been registered, or is affiliated with an adviser that has been registered as an investment adviser under the Investment Advisers Act of 1940, 15 U.S.C. § 80b-1 et seq. for at least three (3) years immediately before an offer or sale of a security claimed to be exempt under this subparagraph and has acted, or is affiliated with an investment adviser that has acted, as investment adviser to one or more registered investment companies or unit investment trusts for at least three (3) years immediately before an offer or sale of a security claimed to be exempt under this subparagraph; or

(ii) The issuer has a sponsor that has at all times throughout the three (3) years before an offer or sale of a security claimed to be exempt under this subparagraph sponsored one or more registered investment companies or unit investment trusts the aggregate total assets of which have exceeded one hundred million dollars ($100,000,000).

(iii) The director has received prior to any sale exempted in this section:

(a) A notice of intention to sell which has been executed by the issuer which states the name and address of the issuer and the title of the securities to be offered in this state; and

(b) A filing fee of three hundred dollars ($300) one thousand dollars ($1,000).

(iv) In the event any offer or sale of an open end management investment company is to be made more than twelve (12) months after the date notice under subdivision (14) (iii) is received by the director, another notice and payment of the applicable fee is required.

For the purpose of this subsection an investment adviser is affiliated with another investment adviser if it controls, is controlled by, or is under common control with the other investment adviser.

SECTION 2.  This article shall take effect as of July 1, 2003.

ARTICLE 25

Relating To Retirement System Administration

SECTION 1.  Section 36-8-10.1 of the General Laws in Chapter 36-8 entitled “Retirement System-Administration” is hereby amended to read as follow:

36-8-10.1.  Payment of administrative expense of the retirement board and maintaining the retirement system – Restricted receipts account. -- (a) There is hereby created a restricted receipt account, under the control of the general treasurer, the proceeds of which shall be used solely to pay the expenses of the retirement board, the cost of maintaining the retirement system, and the costs of administering the retirement system.

(b) There shall be transferred to this restricted receipt account one and one half percent (1.5%) of the investment income received by the employee's retirement system of the state of Rhode Island up to a maximum of one and one half percent (1.5%) of the investment income seventeen and one-half (17.5) basis points (0.175%), where one hundred (100.0) basis points equals one percent (1.0%), of the average total investments before lending activities as reported in the annual report of the auditor general for the next preceding five fiscal years. Any nonencumbered funds on June 30 of any fiscal year shall be credited to the employees' retirement system of the state of Rhode Island and to the municipal employees' retirement system of the state of Rhode Island in the same proportion as their contributions to the restricted receipt account established by this section during the fiscal year.

SECTION 2. Section 45-21-42.1 of the General Laws in Chapter 45-21 entitled “Retirement of Municipal Employees” is hereby amended to read as follow:

45-21-42.1.  Payment of administrative expenses of the retirement board and maintaining the retirement system – Restricted receipt account. -- There is transferred to the restricted receipt account established in § 36-8-10.1 one and one-half percent (1.5%) of the investment income received by the municipal employees' retirement system of the state of Rhode Island up to a maximum of one and one-half percent (1.5%) of the investment income up to a maximum of seventeen and one-half (17.5) basis points (0.175%), where one hundred (100.0) basis points equals one percent (1.0%),of the average total investments before lending activities of the municipal employees’ retirement system of the state of Rhode Island as reported in the annual report of the auditor general for the next preceding five fiscal years.

SECTION 3.  This article shall take effect as of July 1, 2003.

ARTICLE 26

Relating To medical assistance  -- rates of reimbursement for hospital emergency room physician services

SECTION 1. With respect to the fee-for-service Medical Assistance Program administered pursuant to title 40, chapter 8, the Department of Human Services shall establish rates for medical evaluation and management services provided by a physician in the emergency department of a licensed hospital that shall be no less than fifty-five percent (55%) of what the Medicare program would pay for the same services pursuant to Title XVIII of the Social Security Act, as amended.

SECTION 2. This article shall take effect on July 1, 2003.

 

 

 

ARTICLE 27

RELATING TO A JOINT LEGISLATIVE COMMISSION TO STUDY THE IMPLEMENTATION OF A FUNDING INDEX FOR PRIVATE COMMUNITY-BASED PROVIDERS OPERATING PURSUANT TO CONTRACTS WITH THE STATE OF RHODE ISLAND

SECTION 1. There is hereby created a Joint Legislative Commission consisting of eleven (11) members: three (3) of whom shall be from the House of Representatives, of which one (1) member shall be from the minority party, all of whom shall be appointed by the Speaker of the House; three (3) of whom shall be from the Senate, of which one (1) member shall be from the minority party, all of whom shall be appointed by the President of the Senate; three (3) of whom shall be from the Executive Branch, all of whom shall be appointed by the Governor; and two (2) of whom shall be representatives of  private community-based providers, both of whom shall be appointed by the Speaker of the House.

The purpose of this Commission shall be to undertake analyses and make recommendations for legislative and/or administrative proposals or actions to implement an annual funding index to address the long-term funding stability of the private community-based providers with whom the State of Rhode Island contracts to provide the human services the State of Rhode Island historically has recognized as necessary to the health and welfare of its citizens.

Over the last several years, the private community-based providers with whom the State of Rhode Island contracts have experienced increased costs in all areas of business operations and categories of expenditures. However, in recent years, reimbursement by the State of Rhode Island for these services has been limited either to partial reimbursement or level funding. The implementation of an annual funding index would more accurately reflect increased costs, and would provide budget stability for both the State of Rhode Island and the private community-based providers with whom the State of Rhode Island contracts.

Forthwith upon passage of this resolution, the members of the commission shall meet at the call of the Speaker of the House and organize and shall select from among the legislators a chairperson. Vacancies in said commission shall be filled in like manner as the original appointment.

The members of the commission shall receive no compensation for their services.

All departments and agencies of the State of Rhode Island shall furnish such advice and information, documentary and otherwise, to said commission and its agents as is deemed necessary or desirable by the commission to facilitate the purposes of this resolution.

The Speaker of the House is hereby authorized and directed to provide suitable quarters for said commission.

The commission shall report its findings and recommendations to the General Assembly on or before February 1, 2004 and said commission shall expire on June 30, 2004.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 28

Relating To Motor Fuel Tax

SECTION 1.  Section 31-36-20 General Laws in Chapter 31-36 entitled “Motor Fuel Tax” is hereby amended to read as follows:

31-36-20.  Disposition of proceeds. -- (a) Notwithstanding any other provision of law to the contrary, all moneys paid into the general treasury under the provisions of this chapter or chapter 37 of this title shall be applied to and held in a separate fund and be deposited in any depositories that may be selected by the general treasurer to the credit of the fund, which fund shall be known as the Intermodal Surface Transportation Fund; provided, that six and one-fourths cents ($0.0625) six and eighty-five hundredth cents ($0.0685) per gallon of the tax imposed and accruing for the liability under the provisions of § 31-36-7, less refunds and credits, shall be transferred to the Rhode Island public transit authority as provided under § 39-18-21, and one cent ($.01) per gallon shall be transferred to the Elderly/Disabled Transportation Program of the department of elderly affairs, and the remaining cents per gallon shall be available for general revenue as determined by the following schedule:

(i) For the fiscal year 2000, three and one fourth cents ($0.0325) shall be available for general revenue.

(ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for general revenue.

(iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general revenue.

(iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for general revenue.

(v) For the fiscal year 2004, and thereafter, two cents ($0.02) one and forty hundredth cents ($0.0140) shall be available for general revenue.

(2) All deposits and transfers of funds made by the tax administrator under this section including those to the Rhode Island public transit authority, the department of elderly affairs and the general fund, shall be made within twenty-four (24) hours of receipt or previous deposit of the funds in question.

(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund shall be dedicated to the department of administration, subject to annual appropriation by the general assembly. The director of administration shall submit to the general assembly, budget office and office of the governor annually an accounting of all amounts deposited in and credited to the fund together with a planned budget for proposed expenditures for the succeeding fiscal year in compliance with §§ 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized and directed to draw his or her orders upon the general treasurer for the payments of any sum or portion of the sum that may be required from time to time upon receipt of properly authenticated vouchers.

(c) At any time the amount of the fund is insufficient to fund the expenditures of the department of administration, not to exceed the amount authorized by the general assembly, the general treasurer is authorized, with the approval of the governor and the director of administration, in anticipation of the receipts of monies enumerated in § 31-36-20 to advance sums to the fund, for the purposes specified in § 31-36-20, any funds of the state not specifically held for any particular purpose. However, all the advances made to the fund shall be returned to the general fund immediately upon the receipt by the fund of proceeds resulting from the receipt of monies to the extent of the advances.

SECTION 2.  This article shall take effect as of July 1, 2003.

ARTICLE 29

RELATING TO SHARE BASED FEES

SECTION 1.  Sections 7-1.1-123 and 7-1.1-124 of the General Laws in Chapter 7-1.1 entitled "Business Corporations" are hereby amended to read as follows: 

7-1.1-123.  License fees payable by domestic corporations. -- (a) The secretary of state shall charge and collect from each domestic corporation license fees, based on the number of shares which it has authority to issue or the increase in the number of shares which it has authority to issue, at the time of:

(1) Filing articles of incorporation;

(2) Filing articles of amendment increasing the number of authorized shares; and

(3) Filing articles of merger or consolidation increasing the number of authorized shares which the surviving or new corporation, if a domestic corporation, has the authority to issue above the aggregate number of shares which the constituent domestic corporations and constituent foreign corporations authorized to transact business in this state had authority to issue.

(b) The license fees are at the rate of one cent (1¢) per share up to and including the first ten thousand (10,000) authorized shares, one-half cent ( 1/2¢) per share for each authorized share in excess of ten thousand (10,000) shares up to and including one hundred thousand (100,000) shares, and (i) one-fifth cent (1/5¢) per share for each authorized share in excess of one hundred thousand (100,000) shares, whether the shares are of par value or without par value, but in no case less than eighty dollars ($80.00) if the total number of new shares being authorized is seventy-five million (75,000,000) shares or greater, or (ii) one hundred and sixty dollars ($160) if the total number of new shares being authorized is less than seventy-five million (75,000,000) shares.

(c) The license fees payable on an increase in the number of authorized shares is imposed only on the increased number of shares, and the number of previously authorized shares is to be taken into account in determining the rate applicable to the increased number of authorized shares.

 7-1.1-124. License fees payable by foreign corporations. – (a) The secretary of state shall charge and collect from each foreign corporation license fees, based on the proportion represented in this state of the number of shares which it has authority to issue or the increase in the number of shares which it has authority to issue, at the time of:

(1) Filing an application for a certificate of authority to transact business in this state;

(2) Filing articles of amendment which increased the number of authorized shares; and

(3) Filing articles of merger or consolidation which increased the number of authorized shares which the surviving or new corporation, if a foreign corporation, has authority to issue above the aggregate number of shares which the constituent domestic corporations and constituent foreign corporations authorized to transact business in this state had authority to issue.

(b) The license fees are at the rate of one cent (1¢) per share up to and including the first ten thousand (10,000) authorized shares represented in this state, one half cent ( 1/2¢) per share for each authorized share in excess of ten thousand (10,000) shares up to and including one hundred thousand (100,000) shares represented in this state, and (i) one-fifth cent (1/5¢) per share for each authorized share in excess of one hundred thousand (100,000) shares represented in this state, whether the shares are of par value or without par value, but in no case less than fifteen dollars ($15.00).  if the total number of new shares being authorized is seventy-five million (75,000,000) shares or greater, or (ii) one hundred and sixty dollars ($160) if the total number of new shares being authorized is less than seventy-five million (75,000,000) shares.

(c) The license fees payable on an increase in the number of authorized shares is imposed only on the increased number of the shares represented in this state, and the number of previously authorized shares represented in this state is to be taken into account in determining the rate applicable to the increased number of authorized shares.

(d) The number of authorized shares represented in this state is that proportion of its total authorized shares which the sum of the value of its property located in this state and the gross amount of business transacted by it at or from places of business in this state bears to the sum of the value of all of its property, wherever located, and the gross amount of its business, wherever transacted. The proportion is determined from information contained in the application for a certificate of authority to transact business in this state or in the application for an amended certificate of authority to transact business in this state.

SECTION 2.  This article shall take effect on July 1, 2003.

 

ARTICLE 30

RELATING TO THE SELECT COMMISSION ON RACE AND POLICE-COMMUNITY RELATIONS ACT

SECTION 1. Title 42 of the General Laws entitled  "State Affairs and Government" is hereby amended by adding thereto the following chapter:

CHAPTER 137
THE SELECT COMMISSION ON RACE AND POLICE-COMMUNITY RELATIONS ACT

42-137-1.  Short title. – This chapter shall be known and may be cited as the “Select Commission on Race and Police-Community Relations Act.”

42-137-2. Commission created -- Composition. – (a) There is hereby created the Select Commission on Race and Police-Community Relations, hereinafter called the "select commission."

(b) The select commission shall consist of fifteen (15) members:

(i) The attorney general, or designee;

(ii) The superintendent of the state police, or designee;

(iii) The chief of police of the Providence police department, or designee;

(iv) The President of the Rhode Island police chiefs' association or designee;

(v) The President of the Statewide Fraternal Order of Police, or designee;

(vi) The President of the International Brotherhood of Police Officers, or designee;

(vii) The President of the Rhode Island Minority Police Association, or designee, and the President of the Rhode Island Hispanic Officers Association, or designee;

(viii) The President of the NAACP, New England Area Conference or designee;

(ix)  The President of the Urban League of Rhode Island, or designee;

(x) Three (3) members appointed by the governor from civic, interfaith, and/or community service organizations;

(xi) One (1) member appointed by the governor from a list of names submitted by the President of the Senate;

(xii) One (1) member appointed by the governor from a list of names submitted by the Speaker of the House of Representatives.

(c) The attorney general, superintendent of state police, and chief of police of the Providence police department are ex officio members with full voting rights and privileges, and each may send, in his or her place, a designated representative to a meeting and/or meetings. If the designation is made in writing, the representative shall have full voting privileges.

(d) The members of the select commission shall serve two (2) year terms and shall be eligible for reappointment. In the event a vacancy arises it must be filled within thirty (30)  days for the remainder of the term in the manner of the original appointment or designation.

42-137-3. Chairperson and vice-chairperson -- Meetings -- Quorum. – The governor shall, at the time of the initial appointments to the select commission, designate one (1) member to act as chairperson and another to act as vice-chairperson of the commission for one (1) year. Thereafter, the select commission shall elect a chairperson and a vice-chairperson. The vice-chairperson shall act as chairperson in the absence of the chairperson or in the event of a vacancy in that position. The select commission shall meet at least four (4) times in each year and shall hold meetings when called by the chairperson or, in his or her absence, by the vice-chairperson. Eight (8) members of the select commission shall constitute a quorum.

42-137-4. Compensation and expenses of members. – Members of the select commission shall receive no compensation, but shall be reimbursed for their actual and necessary expenses incurred in the performance of their duties. No member shall lose any pay or benefits by reason of his or her attendance at meetings of the commission.

42-137-5. Duties. – The select commission shall:

(a) Analyze and recommend changes that will improve police-community relations in Rhode Island.

(b) Study and recommend changes needed to statutes, ordinances, institutional policies, procedures and practices deemed necessary to:

(i) improve law enforcement work and accountability;

(ii) reduce racism;

(iii) enhance the administration of justice; and

(iv) affect reconciliation between diverse segments of the statewide community.

(c) Study, recommend, promote and implement methods to achieve greater citizen participation in law enforcement policy development, review of law enforcement practices, and advocacy for the needs of law enforcement agencies, officers, and the public at large in the prevention of crime, administration of justice and public safety.

(d) Study, recommend, promote and assist in the incorporation of evolving homeland security needs with effective models of neighborhood-oriented community policing, crime prevention and public safety.

(e) Promote greater understanding of the need to incorporate cultural diversity in everyday as well as extraordinary activities involving law enforcement, public safety and the administration of justice.

(f) Analyze, review, recommend, assist in and monitor changes to police policies, procedures and practices related to:

(i) recruitment, hiring, promotion and training of police officers;

(ii) the level and quality of diversity training, sensitivity awareness and cultural competency;

(iii) the level and quality of efforts related to building and improving overall  community relations;

(iv) the use of firearms by on-duty and off-duty police officers;

(v) the use of force, the use of excessive force or the excessive use of force;

(vi) the use of racial profiling and other forms of bias based policing; and

(vii) legislation reforming police policies, practices, or procedures involving community relations.

(g) To assist the select commission in its duties pursuant to subsection (f), all police departments shall submit to the select commission on an annual basis beginning on January 15, 2004, and for three (3) years thereafter, a report indicating what action, if any has been taken, to address any racial disparities in traffic stops and/or searches documented in the study authorized by section 31-21.1-4, and to otherwise implement any recommendations of that study.  The reports shall be public records.

42-137-6. Authority of select commission. – The select commission shall have the authority to conduct surveys, studies and analyses consistent with its mission and its budget,  approved by the Rhode Island General Assembly. Consistent with its budget appropriations, mission, goals and purpose, the select commission may engage the services of an executive director and such other managerial, administrative and clerical employees as are necessary for the effective performance of its functions. The select commission is authorized and empowered to hold hearings, subject to chapter 46 of title 42 of Rhode Island General Laws entitled “Open Meetings,” and may request and shall receive from any department, division, board, bureau, commission, or agency of this state, or any of its political subdivisions, any assistance, records and data that will enable it to carry out its powers and duties. The commission may utilize any advisors it deems necessary, and may create and appoint such subcommittees, task forces, or advisory committees it deems necessary to carry out its mission. The chairperson of the select commission shall appoint members to chair subcommittees, task forces, or advisory committees; and may appoint persons who are not members of the commission to serve on subcommittees, task forces, or advisory committees.

42-137-7. Grants, appropriations, and gifts. – The commission shall be empowered to apply for from any federal, state, or local agency, private foundation, or individual, any grants, appropriations, or gifts. Any grants, appropriations or gifts shall be deposited in the general fund and subject to the appropriation process.

42-137-8. Report. – The select commission may make any interim reports it deems necessary to address problems in police policies, practices, procedures or community relations. The select commission shall also prepare and submit a report of its activities to the Governor, the Speaker of the House of Representatives, and the President of the Senate on or before January 15 of each calendar year. The annual report shall include, but not be limited to, recommendations for revisions, amendments, additions, or the consolidation of laws relating to police policies, practices, procedures or police-community relations. The annual report, and other relevant material shall be the basis for determining whether to continue the commission, modify the commission, or abolish the commission.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 31

Relating To State Archives

SECTION 1. Section 42-8.1-20 of the General Laws in Chapter 42-8.1 entitled "State Archives" is hereby amended to read as follows:

42-8.1-20. Rhode Island Historical Records Trust established. -- (a) There is hereby established a special fund to be known as the Rhode Island Historical Records Trust (hereinafter called Trust).

 (b) There is hereby imposed an additional assessment of two dollars ($2.00) for every instrument filed for recording pursuant to sections 33-22-21 and 34-13-7.

 (c) On the first of every month, the municipal clerk shall transmit to the State Archives one half of the additional assessment collected under subsection (b) for deposit in the Rhode Island Historical Records Trust. The remaining one half of each such additional assessment shall remain with the local government and be deposited in a local Historical Records Trust.

 (d) All monies retained by a local government shall be placed in a Historical Record Trust Fund maintained by the local government. The expenditure of these monies shall be restricted solely to the preservation of public records of historical value maintained by the municipal clerk or by a municipal archives.

 (e) Use of these funds by the State Archives shall be restricted solely to for the development and ongoing maintenance of a full-time local government records management program component within and the state archives and records program. Such program shall be responsible for providing aid, advice, and assistance to all local governments of this State concerning the proper management and preservation of the public records in their custody or care, as required by other provisions of statute. Funds shall be expended to support administrative and other costs associated with the provision of consultative and technical services including, but not limited to, educational programming, micrographics services, and ongoing storage and preservation of local government records.

 (f) All monies received by the General Treasurer and other moneys appropriated or received for the purposes stated in subsection (b) shall be deposited in a restricted account which shall be administered by the State Archives.

 (g) Each year the State Archives shall review and make recommendations on a proposed operational and expenditure plan for the RI Historical Records Trust.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 32

Relating To Temporary Disability Insurance Refunds

SECTION 1.  Chapter 28-40 of the General Laws entitled “Temporary Disability Insurance – Contributions” is hereby amended by adding thereto the following section.

28-40-6.2.  Set-Off for Delinquent Income Taxes. -- (a) If the tax administrator determines a person has neglected or refused to pay personal income taxes as defined in chapter 44-30 of the general laws, the tax administrator shall notify the director of labor and training of the delinquency.  The director, upon certification of the amount of tax delinquency by the tax administrator, shall set off the amount of the tax delinquency against any temporary disability insurance tax refund due that person and shall forward that amount to the tax administrator.

(b) The tax administrator may not seek such a set-off unless a delinquency determination for the personal income tax has first been directed to the person.  Provided, further, that if a person assessed a delinquency determination for the personal income tax has requested a hearing within the statutory period, no request for set off may be made while the matter is pending in hearing or any appeal therefrom.

SECTION 2.  This article shall take effect upon passage.

ARTICLE 33

Relating To Unclaimed Intangible and Tangible Property

SECTION 1. Chapter 33-21.1 of the General Laws entitled  "Unclaimed Intangible and Tangible Property" is hereby amended by adding thereto the following section:

33-21.1-16.1. Unclaimed demutualization proceeds. – Property distributable in the course of a demutualization of an insurance company is deemed abandoned two (2) years after the date the property is first distributable if, at the time of the first distribution the last known address of the owner on the books and records of the holder is known to be incorrect, or the distribution or statements are returned by the post office as undeliverable; and the owner has not:

(1) communicated in writing with the holder or its agents regarding the property; or

(2) otherwise communicated with the holder regarding the property as evidenced by a memorandum or other record on file with the holder or its agent.

SECTION 2. Sections 33-21.1-17 and 33-21.1-18 of the General Laws in Chapter 33-21.1 entitled "Unclaimed Intangible and Tangible Property" are hereby amended to read as follows:

33-21.1-17. Report of abandoned property. -- (a) A person holding property tangible or intangible, presumed abandoned and subject to custody as unclaimed property under this chapter, shall report to the administrator concerning the property as provided in this section.

 (b) The report must be verified and must include:

 (1) Except with respect to travelers checks and money orders, the name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of property of the value of fifty ($50.00) dollars or more presumed abandoned under this chapter;

 (2) In the case of unclaimed funds of fifty dollars ($50.00) or more held or owing under any life or endowment insurance policy or annuity contract, the full name and last known address of the insured or annuitant and of the beneficiary according to the records of the insurance company holding or owing the funds;

 (3) In the case of the contents of a safe deposit box or other safekeeping repository or of other tangible property, a description of the property and the place where it is held and may be inspected by the administrator and any amounts owing to the holder;

 (4) The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, but items of value under fifty dollars ($50.00) each shall be reported in the aggregate;

 (5) The date the property became payable, demandable, or returnable, and the date of the last transaction with the apparent owner with respect to the property; and

 (6) Other information the administrator prescribes by rule as necessary for the administration of this chapter.

 (c) If the person holding property presumed abandoned and subject to custody as unclaimed property is a successor to other persons who previously held the property for the apparent owner or the holder has changed his or her name while holding the property, he or she shall file with his or her report all known names and addresses of each previous holder of the property.

 (d) The report must be filed before November 1 of each year as of June 30, next preceding, but the report of any life insurance company, including the report of unclaimed insurance company demutualization proceeds made pursuant to section 33-21.1-16.1, must be filed before May 1 of each year as of December 31 next preceding. On written request by any person required to file a report, the administrator may postpone the reporting date.

 (e) Not more than one hundred and twenty (120) days before filing the report required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this chapter shall send written notice to the apparent owner at his or her last known address informing him or her that the holder is in possession of property subject to this chapter if:

 (i) The holder has in its records an address for the apparent owner which the holder's records do not disclose to be inaccurate,

 (ii) The claim of the apparent owner is not barred by the statute of limitations, and

 (iii) The property has a value of fifty dollars ($50.00) or more.

 33-21.1-18. Notice and publication of lists of abandoned property. -- (a) The administrator shall cause a notice to be published not later than March 1, or in the case of property reported by life insurance companies, September 1, of the year immediately following the report required by section 33-21.1-17 at least once a week for two (2) consecutive weeks in a newspaper of general circulation in the county of this state in which is located the last known address of any person to be named in the notice. If no address is listed or the address is outside this state, the notice must be published in the county in which the holder of the property has its principal place of business within this state.

 (b) The published notice must be entitled "Notice of Names of Persons Appearing to be Owners of Abandoned Property" and contain:

 (1) The names in alphabetical order and last known address, if any, of persons listed in the report and entitled to notice within the county as specified in subsection (a);

 (2) A statement that information concerning the property and the name and last known address of the holder may be obtained by any person possessing an interest in the property by addressing an inquiry to the administrator; and

 (3) A statement that if proof of claim is not presented by the owner to the holder and the owner's right to receive the property is not established to the holder's satisfaction the property will be placed in the custody of the administrator and all further claims must thereafter be directed to the administrator.

 (c) The administrator is not required to publish in the notice any items of less than fifty dollars ($50.00) unless the administrator considers their publication to be in the public interest.

 (d) This section is not applicable to sums payable on travelers checks, money orders, and other written instruments presumed abandoned under section 33-21.1-4.

SECTION 3. This article shall take effect on July 1, 2004.

 

ARTICLE 34

RELATING TO HEALTH - FACILITY LICENSING

SECTION 1. Section 23-17-2 of the General Laws in Chapter 23-17 entitled “Licensing of Health Care Facilities” is hereby amended to read as follows:

23-17-2.  Definitions. -- As used in this chapter:

(1) "Alzheimer's dementia special care unit or program" means a distinct living environment within a nursing facility that has been physically adapted to accommodate the particular needs and behaviors of those with dementia. The unit provides increased staffing, therapeutic activities designed specifically for those with dementia, and trains its staff on an ongoing basis on the effective management of the physical and behavioral problems of those with dementia. The residents of the unit/program have had a standard medical diagnostic evaluation and have been determined to have a diagnosis of Alzheimer's dementia or another dementia.

(2) "Change in operator" means a transfer by the governing body or operator of a health care facility to any other person (excluding delegations of authority to the medical or administrative staff of the facility) of the governing body's authority to:

(A) Hire or fire the chief executive officer of the health care facility;

(B) Maintain and control the books and records of the health care facility;

(C) Dispose of assets and incur liabilities on behalf of the health care facility; or

(D) Adopt and enforce policies regarding operation of the health care facility.

(ii) This definition is not applicable to circumstances wherein the governing body of a health care facility retains the immediate authority and jurisdiction over the activities enumerated in subdivisions (2)(i)(A) – (2)(i)(D).

(3) "Change in owner" means:

(i) In the case of a health care facility which is a partnership, the removal, addition, or substitution of a partner which results in a new partner acquiring a controlling interest in the partnership;

(ii) In the case of a health care facility which is an unincorporated solo proprietorship, the transfer of the title and property to another person;

(iii) In the case of a health care facility that is a corporation:

(A) A sale, lease exchange, or other disposition of all, or substantially all of the property and assets of the corporation; or

(B) A merger of the corporation into another corporation; or

(C) The consolidation of two (2) or more corporations, resulting in the creation of a new corporation; or

(D) In the case of a health care facility which is a business corporation, any transfer of corporate stock which results in a new person acquiring a controlling interest in the corporation; or

(E) In the case of a health care facility which is a nonbusiness corporation, any change in membership which results in a new person acquiring a controlling vote in the corporation.

(4) "Clinician" means a physician licensed under title 5, chapter 37; a nurse licensed under title 5, chapter 34; a psychologist licensed under title 5, chapter 44; a social worker licensed under title 5, chapter 39.1; a physical therapist licensed under title 5, chapter 40; and a speech language pathologist or audiologist licensed under title 5, chapter 48.

(5) "Director" means the director of the Rhode Island state department of health.

(6) "Health care facility" means any institutional health service provider, facility or institution, place, building, agency, or portion thereof, whether a partnership or corporation, whether public or private, whether organized for profit or not, used, operated, or engaged in providing health care services, including but not limited to hospitals; nursing facilities; home nursing care provider (which shall include skilled nursing services and may also include activities allowed as a home care provider or as a nursing service agency); home care provider (which may include services such as personal care or homemaker services); rehabilitation centers; kidney disease treatment centers; health maintenance organizations; free-standing emergency care facilities, and facilities providing surgical treatment to patients not requiring hospitalization (surgi-centers); hospice care, and physician ambulatory surgery centers and podiatry ambulatory surgery centers providing surgical treatment. The term "health care facility" also includes organized ambulatory care facilities which are not part of a hospital but which are organized and operated to provide health care services to outpatients such as central services facilities serving more than one health care facility or health care provider, treatment centers, diagnostic centers, rehabilitation centers, outpatient clinics, infirmaries and health centers, school based health centers and neighborhood health centers. The term "health care facility" shall not apply to organized ambulatory care facilities owned and operated by professional service corporations as defined in chapter 5.1 of title 7, as amended (the "Professional Service Corporation Law"), or to a private practitioner's (physician, dentist, or other health care provider) office or group of the practitioners' offices (whether owned and/or operated by an individual practitioner, alone or as a member of a partnership, professional service corporation, organization, or association). Individual categories of health care facilities shall be defined in rules and regulations promulgated by the licensing agency with the advice of the health services council. Rules and regulations concerning hospice care shall be promulgated with regard to the "Standards of a Hospice Program of Care", promulgated by National Hospice Organization. Any provider of hospice care who provides hospice care without charge shall be exempt from the licensing provisions of this chapter but shall meet the "Standards of a Hospice Program of Care." Facilities licensed by the department of mental health, retardation, and hospitals and the department of human services, and clinical laboratories licensed in accordance with chapter 16.2 of this title, as well as Christian Science institutions (also known as Christian Science Nursing Facilities) listed and certified by the Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc. shall not be considered health care facilities for purposes of this chapter.

(7) "Homemaker", or however else called, means a trained non-professional worker who performs related housekeeping services in the home for the sick, disabled, dependent, or infirm, and as further defined by regulation; the director shall establish criteria for training.

(8) "Hospital" means a person or governmental entity licensed in accordance with this chapter to establish, maintain and operate a hospital.

(9) "Licensing agency" means the Rhode Island state department of health.

(10) "Medical services" means any professional services and supplies rendered by or under the direction of persons duly licensed under the laws of this state to practice medicine, surgery, or podiatry that may be specified by any medical service plan. Medical service shall not be construed to include hospital services.

(11) "Non-English speaker" means a person who cannot speak or understand, or has difficulty in speaking or understanding, the English language, because he/she uses only or primarily a spoken language other than English, and/or a person who uses a sign language and requires the use of a sign language interpreter to facilitate communication.

(12) "Person" means any individual, trust or estate, partnership, corporation, (including associations, joint stock companies, and insurance companies) state, or political subdivision or instrumentality of a state.

(13) "Physician ambulatory surgery center" means an office or portion of an office owned and/or operated by a physician controlled professional service corporation as defined in chapter 5.1 of title 7 (the "Professional Service Corporation Law"), or a private physician's office or group of the physicians' offices (whether owned and/or operated by an individual practitioner, alone or as a member of a partnership, professional service corporation, organization, or association) which is utilized for the purpose of furnishing surgical services to the owner and/or operator's own patients on an ambulatory basis.

(14) "Podiatry ambulatory surgery center" means an office or portion of an office owned and/or operated by a podiatrist controlled professional service corporation as defined in chapter 5.1 of title 7 (the "Professional Service Corporation Law"), or a private podiatrist's office or group of the podiatrists' offices (whether owned and/or operated by an individual practitioner, alone or as a member of a partnership, professional service corporation, organization, or association) which is utilized for the purpose of furnishing surgical services to the owner and/or operator's own patients.

(15) "Qualified interpreter" means a person who, through experience and/or training, is able to translate a particular foreign language into English with the exception of sign language interpreters who must be licensed in accordance with chapter 71 of title 5.

(16) "Qualified sign language interpreter" means one who has been licensed in accordance with the provisions of chapter 71 of title 5.

(17) "School based health center" means a facility located in an elementary or secondary school that delivers primary and preventive health care services to students on site.

SECTION 2. Section 23-17-51 of the General Laws in Chapter 23-17 entitled “Licensing of Health Care Facilities” is hereby amended to read as follows:

23-17-51.  Magnetic resonance imaging – Quality assurance standards. – Any licensed health care facility performing a magnetic resonance imaging examination shall be accredited by the American College of Radiology. meet state approved quality assurance standards for taking and processing magnetic resonance imaging examinations. The director of health has the authority to promulgate rules and regulations necessary to carry out the provisions of this section. The rules and regulations are based upon the most current standards of the American college of radiology.

SECTION 3. Section 27-18-53 of the General Laws in Chapter 27-18 entitled “Accident and Sickness Insurance Policies” is hereby amended to read as follows:.

27-18-53.  Magnetic Resonance Imaging –Quality assurance standards.A magnetic resonance imaging examination eligible for reimbursement under the provisions of any individual or group health insurance contract, plan or policy delivered in this state shall be reimbursed only if the provider at which the examination has been conducted and processed, and the licensed physician interpreting the results of the magnetic resonance imaging examination are both accredited by the American College of Radiology. , both meet state approved quality assurance standards for taking, processing, and interpreting magnetic resonance imaging examinations. The director of health shall have the authority to promulgate rules and regulations necessary to carry out the provisions of this section. The rules and regulations shall be based upon the most current standards of the American College of Radiology.

SECTION 4. Section 27-19-46 of the General Laws in Chapter 27-19 entitled “Nonprofit Hospital Service Corporations” is hereby amended to read as follows:

27-19-46.  Magnetic resonance imaging – Quality assurance standards. -- A magnetic resonance imaging examination eligible for reimbursement by a nonprofit hospital services corporation licensed pursuant to this chapter is reimbursed only if the provider at which the examination has been conducted and processed, and the licensed physician interpreting the results of the magnetic resonance imaging examination are both accredited by the American College of Radiology. , both meet state approved quality assurance standards for taking, processing, and interpreting magnetic resonance imaging examinations. The director of health has the authority to promulgate rules and regulations necessary to carry out the provisions of this section. The rules and regulations are based upon the most current standards of the American College of Radiology.

SECTION 5. Section 27-41-56 of the General Laws in Chapter 27-41 entitled “Health Maintenance Organizations” is hereby amended to read as follows:

27-41-56.  Magnetic Resonance Imaging – Quality assurance standards. -- A magnetic resonance imaging examination eligible for reimbursement by a health maintenance organization licensed pursuant to this chapter is reimbursed only if the provider at which the examination has been conducted and processed, and the licensed physician interpreting the results of the magnetic resonance imaging examination are both accredited by the American College of Radiology. , both meet state approved quality assurance standards for taking, processing, and interpreting magnetic resonance imaging examinations. The director of health has the authority to promulgate rules and regulations necessary to carry out the provisions of this section. The rules and regulations are based upon the most current standards of the American College of Radiology.

SECTION 6. Chapter 23-17.7 of the General Laws entitled “Licensing of Nursing Service Agencies” is hereby repealed in its entirety.

CHAPTER 17.7

LICENSING OF NURSING SERVICE AGENCIES

23-17.7-1  Declaration of purpose.The purpose of this chapter is to provide for the development, establishment, and enforcement of standards:

(1) For the licensing of nursing service agencies; and

(2) To promote safe and adequate care for individuals receiving nursing and nursing related services.

23-17.7-2.  Definitions.(a) "Director" means the director of the state department of health;

(b) "Licensing agency" means the state department of health;

(c) "Nursing assistant" is defined as a nursing, orderly, or home health aide who is a paraprofessional trained to give personal care and related health care and assistance based on his or her level of preparation to individuals who are sick, disabled, dependent, or infirmed. The director of the department of health may by regulation establish different levels of nursing assistants;

(d) "Nursing service agency" is defined as any person, firm, partnership, or corporation doing business within the state that supplies, on a temporary basis, registered nurses, licensed practical nurses, or nursing assistants to a hospital, nursing home, or other facility requiring the services of those persons, with the exception of home nursing care providers, home care providers, and hospices licensed in this state. For all purposes a nursing service agency shall be considered an employer and those persons that it supplies on a temporary basis shall be considered employees and not independent contractors, and nursing service agency shall be subject to all state and federal laws which govern employer-employee relations;

(e) "Service record" means the written entire documenting service rendered by the nursing service agency.

23-17.7-3.  Licensing of nursing service agencies – Rules governing Establishment of fees. -- (a) The director may establish reasonable fees for the licensure application, licensure renewal, and administrative actions under this chapter. Annual licensure fees shall be five hundred dollars ($500) per licensee, provided, however, that annual licensure fees for bona fide independent agencies with ten (10) or fewer employees shall be two hundred dollars ($200). All annual licensure fees shall be collected and deposited in a restricted receipt account that shall be used for the general purposes of the division of facilities regulation within the department of health.

(b) The department of health shall promulgate licensure standards, and rules and regulations governing the operation of nursing service agencies to protect the health and welfare of patients. These regulations shall include, but not be limited to, employee bonding, maintenance of service records, and appropriate staff professional registration and certification, licensure training, supervision, health screening, and liability insurance.

23-17.7-4.  License required for nursing service agencies. -- No person shall establish, conduct, or maintain a nursing service agency in this state without a license issued pursuant to this chapter.

23-17.7-5.  Application for license. -- An application for a license shall be made to the licensing agency upon forms provided by it and shall contain any information that the licensing agency reasonably requires, which may include affirmative evidence of ability to comply with reasonable standards and the rules and regulations as issued pursuant to this chapter. Each application shall be accompanied by payment of the fees prescribed in accordance with § 23-17.7-3.

23-17.7-6.  Issuance of license – Posting – Transfer conditions. -- Upon receipt of an application for a license, the licensing agency shall issue a license if the applicant meets the requirements established under this chapter, and any reasonable rules and regulations that may be established in accordance with the requirements established under this chapter. The license shall be conspicuously posted on the licensed premises. Each license shall be issued only to person(s) named in the application and shall not be transferable or assignable except with the prior written approval of the licensing agency. Any change in owner or operator of a licensed nursing service agency shall require approval of the licensing agency as a condition precedent to the transfer, assignment, or issuance of a new license.

23-17.7-7.  Expiration and renewal of license. -- A license shall be for one year and shall expire on the thirty-first (31st) day of December following its issuance and may be renewed from year to year after inspection, report, approval, and collection of fees by the licensing agency. The inspection shall be made any time prior to the date of expiration of the license. The report shall contain information in any form that the licensing agency shall prescribe by regulation.

23-17.7-8.  Denial, suspension, or revocation of license. -- The licensing agency, after notice and opportunity for a hearing to the applicant or licensee, is authorized to deny, suspend, or revoke a license in any case in which it finds that there has been failure to comply with the requirements established under and pursuant to this chapter. The notice shall be effected by registered or certified mail or by personal service, setting forth the particular reasons for the proposed action and fixing a date not less than thirty (30) days from the date of the mailing or service, at which time the applicant or licensee shall be given an opportunity for a prompt and fair hearing. On the basis of the hearing, or upon the failure of the applicant or licensee to appear, the licensing agency shall make a determination specifying its findings of fact and conclusion of law. A copy of the determination shall be sent by registered or certified mail or served personally upon the applicant or licensee. The decision denying, suspending, or revoking the license or application shall become final thirty (30) days after it is so mailed or served, unless the applicant or licensee, within the thirty (30) day period, appeals the decision pursuant to § 42-35-15. The procedure governing hearings authorized by this section shall be in accordance with §§ 42-35-9 through 42-35-13 as stipulated in § 42-35-14(a). A full and complete record shall be kept of all proceedings, and all testimony shall be reported but need not be transcribed unless the decision is appealed pursuant to § 42-35-15. A copy or copies of the transcript may be obtained by an interested party on payment of the cost of preparing the copy or copies. Witnesses may be subpoenaed by either party.

23-17.7-9.  Judicial review of license action. -- Any person who has exhausted all administrative remedies available to him or her within the licensing agency, and who is aggrieved by a final decision of the licensing agency, is entitled to judicial review in accordance with the provisions of §§ 42-35-15 and 42-35-16.

23-17.7-10.  Regulations, inspections, and investigations. -- The licensing agency shall, after a public hearing pursuant to chapter 35 of title 42, give notice, adopt, amend, promulgate, and enforce any rules and regulations and standards with respect to nursing service agencies to be licensed under this chapter that may be designed to further the accomplishment of the purposes of this chapter in promoting safe and adequate care of individuals receiving nursing and nursing assistant services, in the interest of public health, safety, and welfare. All licensed nursing service agencies shall be required to protect clients by insuring that all persons whom it employs receive training and/or competency evaluation pursuant to the provisions of §§ 23-17.9-3 and 23-17.7-11. The licensing agency shall make or cause to be made any inspections and investigations that it deems necessary including service records.

Every individual who is employed to provide nursing assistant services shall be required to comply with the provisions of § 23-17.9-3.

23-17.7-12.  Nursing service agency employees  Identification. -- (a) Any employee of a nursing service agency upon employment and prior to placement shall be provided with a photo identification which shall be worn on the employee's person while the employee is working.

(b) The photo identification shall be in addition to a recent photograph of the employee and shall include the employee's name, certificate, or licensing number with expiration date and the name of the nursing service agency.

23-17.7-13.  Duties of nursing assistants and supervision. -- (a) The duties of nursing assistants shall be defined by the director by rules and regulations.

(b) Supervision in those nursing service agencies which provide direct care to patients shall be provided according to policies and procedures set forth in regulation which shall include, but not be limited to, a plan of care and the provision that nursing assistants shall be supervised by a registered nurse.

(c) Every person, sole proprietor, corporation, partnership, or government agency which provides or arranges for nursing assistants shall have supervision as set forth in subsection (b), available either directly from agency staff or written contractual arrangement with a qualified individual and/or licensed agency

23-17.7-14.  Agencies to which chapter inapplicable. -- (a) The provisions of this chapter shall not be construed to apply to home nursing care providers and home care providers licensed in accordance with chapter 17 of this title; however, the agencies shall be subject to the same training requirements for nursing assistants and the duties of the individuals shall be the same as those prescribed by regulations.

(b) Training Thru Placement, Inc. and the respite care services provided to the developmentally disabled by Training Thru Placement, Inc. shall be exempted from the provisions of this chapter.

23-17.7-15.  Nursing service agencies exempt. -- The provisions of this chapter shall not apply to:

(1) Nursing service agencies and nursing exempt from regulation by the state; or

(2) Visiting nursing services or home health services conducted by and for those who rely exclusively upon spiritual means through prayer alone in accordance with the creed or tenets of a recognized church or religious denomination.

23-17.7-16.  Severability.If any provision of this chapter or the application of any provision of this chapter to any person or circumstance shall be held invalid, the invalidity shall not affect the provisions or application of this chapter which can be given effect without the invalid provisions or application, and to this end the provisions of the chapter are declared to be severable.

23-17.7-17.  Criminal records review. -- (a) Any person seeking employment in a facility which is or is required to be licensed or registered with the department of health if that employment involves routine contact with a patient or resident without the presence of other employees, shall undergo a criminal background check, which shall be initiated prior to, or within one week of, employment. All employees hired prior to the enactment of this section shall be exempted from the requirements of this section.

(b) The director of the department of health may by rule identify those positions requiring criminal background checks. The employee, through the employer, shall apply to the bureau of criminal identification of the state police or local police department for a statewide criminal records check. Fingerprinting shall not be required. Upon the discovery of any disqualifying information as defined in § 23-17.7-18 and in accordance with the rule promulgated by the director of health, the bureau of criminal identification of the state police or the local police department will inform the applicant, in writing, of the nature of the disqualifying information; and, without disclosing the nature of the disqualifying information, will notify the employer, in writing, that disqualifying information has been discovered

(c) An employee against whom disqualifying information has been found may request that a copy of the criminal background report be sent to the employer who shall make a judgment regarding the continued employment of the employee

(d) In those situations in which no disqualifying information has been found, the bureau of criminal identification of the state police or the local police shall inform the applicant and the employer, in writing, of this fact.

(e) The employer shall maintain on file, subject to inspection by the department of health, evidence that criminal records checks have been initiated on all employees seeking employment after October 1, 1991, and the results of the checks. Failure to maintain that evidence would be grounds to revoke the license or registration of the employer.

(f) It shall be the responsibility of the bureau of criminal identification of the state police or the local police department to conduct the criminal records check to the applicant for employment without charge to either the employee or the employer.

23-17.7-18.  Prior criminal records checks. -- If an applicant for employment has undergone a statewide criminal records check within eighteen (18) months of an application for employment, then an employer may request from the bureau of criminal identification or local police a letter indicating if any disqualifying information was discovered. The bureau of criminal identification will respond without disclosing the nature of the disqualifying information. The letter may be maintained on file to satisfy the requirements of this chapter.

23-17.7-19.  Rules and regulations. -- The director of the department of health is authorized to promulgate rules and regulations to carry out the intent of this chapter.

23-17.7-20.  Disqualifying information. -- (a) Information produced by a criminal records review pertaining to conviction, for the following crimes will result in a letter to the employee and employer disqualifying the applicant from employment: murder, voluntary manslaughter, involuntary manslaughter, first degree sexual assault, second degree sexual assault, third degree sexual assault, assault on persons sixty (60) years of age or older, assault with intent to commit specified felonies (murder, robbery, rape, burglary, or the abominable and detestable crime against nature), felony assault, patient abuse, neglect or mistreatment of patients, burglary, first degree arson, robbery, felony drug offenses, larceny, or felony banking law violations. An employee against whom disqualifying information has been found may request that a copy of the criminal background report be sent to the employer who shall make a judgment regarding the continued employment of the employee.

(b) For purposes of this section "conviction" means, in addition to judgments of conviction entered by a court subsequent to a finding of guilty or a plea of guilty, those instances where the defendant has entered a plea of nolo contendere and has received a sentence of probation and those instances where a defendant has entered into a deferred sentence agreement with the attorney general.

23-17.7-21.  Immunity from liability. -- No employer who disqualifies an individual from employment or continued employment within thirty (30) days of receipt of a letter containing disqualifying information as defined in § 23-17.7-20 or of a criminal background report relating to that information shall be liable for civil damages or subject to any claim, cause of action, or proceeding of any nature as result of the disqualification.

SECTION 7. This article shall take effect on July 1, 2003.

 

ARTICLE 35

Relating To Public Utilities and Carriers -- Regulatory Powers of Administration

SECTION 1. Section 39-3-11.2 of the General Laws in Chapter 39-3 entitled "Regulatory Powers of Administration" is hereby amended to read as follows:

39-3-11.2. Interim rates. -- Notwithstanding the provisions of titles 23 and 39, the municipal tipping fee charged by the resource recovery corporation shall be thirty-two dollars ($32.00) per ton from July 1, 2002 2003 to June 30, 2003 2004.

SECTION 2. This article shall take effect on July 1, 2003.

ARTICLE 36

RELATING TO Rhode Island Public corporation debt management act joint resolutions

SECTION 1. House Resolution Number 340, 2001 H-6533, entitled “Joint Resolution Approving the Financing of a New Training School for Youth at the Pastore Center in Cranston” is hereby amended to read as follows:

WHEREAS, The Rhode Island Training School for Youth (the “Training School”) was established for the detention of children by order of the Family Court and for the confinement, instruction and reformation of children found delinquent by the Family Court; and

WHEREAS, The Training School is a secure, 24 hour/365 day residential program for both male and female adjudicated delinquents, and youth detained and awaiting trial. The program provides for the protection of Rhode Island residents through the supervision and housing of youth, educational, medical, recreational, religious and rehabilitative services, and proper placement for youth upon release; and 

WHEREAS, Since 1973, the Training School has been the subject of a Federal District Court Order to improve physical conditions, programming, services, policies and procedures; and

WHEREAS, A Consent Decree, entered by the Federal District Court in October 2000, includes the requirement that the department construct a new facility or renovate the existing facility to provide adequate and sufficient housing, education and programming to training school residents; and

WHEREAS, The present capacity of the Training School is 180 beds and does not accommodate the number of residents which need to be housed. The resultant overcrowding creates an unsafe environment for both residents and staff and the current housing configuration results in high supervision costs; and

WHEREAS, The buildings are not in compliance with the Americans with Disabilities Act; and

WHEREAS, The buildings lack electrical security and life safety systems, have deteriorated bathrooms and shower areas, inadequate HVAC systems, interior doors and hardware, and poor electrical lighting; and

WHEREAS, In the last decade, a new school building was constructed and three modular buildings were constructed, and renovations and improvements were made to Buildings 9, 5 and 6; and

WHEREAS, Notwithstanding the improvements made to the facility, the physical plant of the facility is not capable of meeting American Correctional Association accreditation as required by the Federal Court and therefore has prevented full compliance with the Court Order necessitating the need for Judicial oversight; and 

WHEREAS, These and related problems require the construction and furnishing of a new facility on existing state property on Power Road in Cranston to the south of Route 37; and

WHEREAS, The new facility would have a total of 214 beds, with options for future expansion should it become necessary, and would provide safe housing and education and programming opportunities for training school residents; and

WHEREAS, The design and construction of the project are to be financed through Certificates of Participation, with an expected payback period of twenty (20) years, the Rhode Island Capital Plan, federal funds, and with proceeds from the 1994 sale of the Sockanosett property. Financing for the operation and maintenance of the facility will be included in the annual operating budgets of the Department of Children, Youth and Families; and

WHEREAS, The capital costs associated with this project are estimated to be $60 million. This includes $300,000 from the Rhode Island Capital Plan Fund, $645,364 in federal funds, proceeds of $1.9 million from the 1994 sale of the Sockanosett property and $57.2 million from the issuance of Certificates of Participation. The total issuance would be approximately $57.8 million, with $57.2 million deposited in the construction fund and $555,000 available to pay the associated costs of issuance. Total lease payments over twenty (20) years on the $57.8 million issuance are projected to be $92.6 million, assuming an average coupon of 5.03 %. The lease payments would be financed within the Department of Administration from general revenue appropriations and any other sources available to the department; now, therefore be it 

RESOLVED, That a new training school is critical for the State to comply with the Federal Court Consent Decree and would provide secure, humane living conditions and rehabilitative opportunities for training school residents; and

RESOLVED, That this General Assembly thereby approves financing in an amount not to exceed $57.8 million for the construction of a new Training School for Youth; and be it further

RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by this General Assembly.; and be it further

RESOLVED, That this Resolution shall apply to bonds issued prior to February 1, 2004; and be it further

RESOLVED, That prior to the issuance of any bonds, a report that includes site, cost, final design, and program shall be submitted to the Governor, the Speaker of the House of Representatives, the President of the Senate and the Chairpersons of the House and Senate Finance Committees; and provided further that bonds shall not issue unless the Speaker of the House and President of the Senate transmit a letter to the Governor signifying the approval of the report; and be it further

RESOLVED, That the amendments to this Joint Resolution shall take effect upon passage by the General Assembly.

SECTION 2. WHEREAS, The University of Rhode Island is proposing a project which involves the construction of a new sixteen thousand (16,000) square foot lodge and an addition to the dining room and service kitchen at the Whispering Pines Conference Center (the “Conference Center”) on the W. Alton Jones Campus; and

WHEREAS, This new lodge is planned to include approximately twenty (20) bedrooms, an approximately two thousand (2,000) square foot meeting room, and an approximately one thousand (1,000) square foot living room.  Constructed on a site northeast of the main dining lodge, the new lodge will be within close proximity to the Laurel Lodge and is planned to face Louttit Pond.  Completion of this new lodge will provide the Conference Center with approximately fifty-two (52) guest rooms and five (5) meeting rooms.  The proposal also includes an enlarged dining room consisting of approximately two thousand and sixteen (2,016) square feet and an addition of approximately four hundred eighty (480) square feet to the serving kitchen to enhance the Conference Center’s ability to maximize the number of groups it serves; and

WHEREAS, Since the construction of Sycamore Lodge in 1992, the Conference Center has increased its gross revenues from less than six hundred fifty thousand dollars ($650,000) annually to nearly two million dollars ($2,000,000) per year.  This revenue growth has been instrumental in assisting the campus to become financially self-supporting.  Recent sales and marketing efforts are producing requests for meeting space that exceed the present capacity, especially for overnight meetings, the most profitable segment.  Adding to the overnight sleeping facilities will allow the Conference Center to book larger groups and to accommodate additional requests from groups that are currently customers of the Conference Center; and

WHEREAS, Increasing the size of the dining room and the serving kitchen will also enable the Conference Center to make the most efficient use of the new lodge by permitting both day and overnight meeting groups to use the Conference Center.  The proposed new lodge is planned to consist of a two-story wood structure similar to the Sycamore Lodge with the addition of a small exercise/workout area for guests to utilize, as well as a larger conference room and leisure area.  The building is planned to be equipped with modern telecommunications facilities and will include televisions, telephones and Internet access in each guest room and common area; and

WHEREAS, A construction engineer has reviewed the estimated costs and construction expenses for this project.  The engineer’s projected inflation rates have been used in estimating this project.  The campus management is prepared to accelerate the commencement of design work in advance of the July 2003 design-start date using funds from the W. Alton Jones Campus Endowment to be reimbursed from the long-term financing.

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws Section 35-18-1 et seq.) requires that no elected or appointed state official may enter into any financing lease or into any guarantee with any person without the prior approval of the general assembly if the total payments under the financing lease or guarantee will exceed the sum of four million dollars ($4,000,000), and further provides that no bonds may be issued or incurred by any public corporation to finance, in whole or in part, the construction, acquisition or improvement of any essential public facility without the prior approval of the general assembly; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance of certain obligations; and

WHEREAS, The design, construction and equipping of these improvements will be financed through RIHEBC revenue bonds, with an expected term of twenty (20) years; and

WHEREAS, Debt service payments would be supported by revenues of the projects financed; now, therefore be it

RESOLVED, That the total amount of the debt approved to be issued in the aggregate shall be limited to not more than four million two hundred eighty-five thousand dollars ($4,285,000).  Total debt service on the bonds is not expected to exceed three hundred thirty-five thousand dollars ($335,000) annually and six million six hundred forty-two thousand dollars ($6,642,000) in the aggregate based on an average interest rate of four and eight-tenths (4.8) percent and a twenty (20) year maturity; and be it further

RESOLVED, That the new facility is critical to improve and accommodate the daily operation of the University of Rhode Island and that this General Assembly hereby approves financing; and be it further

RESOLVED,  That this Joint Resolution shall take effect upon passage by the General Assembly.

SECTION 3. WHEREAS, URI is proposing construction of a new five hundred (500)-eight hundred (800) student housing facility in one or more buildings. The project uses revenue from the new beds and retail space to support the debt service on the entire project. This model allows URI to construct housing needed by undergraduate and graduate students more quickly than if a similar project were constructed under the traditional design-bid-build model. Currently, URI has a waiting list of students interested in housing; and

WHEREAS, The Board of Governors has a strategic initiative to increase the number of students attaining a degree and is making a concerted effort to improve student retention. The goal of improving retention by two percent (2%) per year for the next three(3) years, by itself, would add to the current campus housing need of seven hundred (700) apartment beds, and two hundred fifty (250) suite beds; and

WHEREAS, Studies and conversations with colleagues at other institutions, consultants, developers and others in the industry agree that today’s students and their families are looking for higher quality housing and a variety of housing style options. They want housing with amenities such as access to voice, video and data,  private bathrooms and comfortable living spaces where students can gather. Over the course of their careers, students want the ability to progressively move from a dormitory-style of living to suites and finally to independent living in apartments. URI currently lacks suite-style or sufficient apartment-style housing to meet this changing demand; and

WHEREAS, For some time, URI has been aware of the changing expectations of students relative to campus housing. Studies and survey data collected since 1998 indicate that upper-level students prefer to live in apartment-style or suite-style housing as opposed to the more traditional dormitory units with double-loaded corridors and shared bathrooms; and

WHEREAS, More recently URI has experienced an unanticipated surge in demand for campus housing – fueled in part by the Internet access provided by the URI network backbone, competitors’ ability to guarantee campus housing beyond the freshman year, and an overall desire for the convenience of campus living. URI lags behind many of its competitors in responding to this important shift in student needs; and

WHEREAS, Evidence that supports this change in URI’s traditional housing pattern – where freshmen live on campus and then move “down the line” in subsequent years – can be found in the current waiting list for undergraduate campus housing. In addition, there is a waiting list of ninety-five (95) graduate students seeking campus housing. The current inventory of apartments for graduate students is one hundred twenty-four (124). These units have been at capacity for the last several years. The Admissions Office is hearing from prospective students that tripling in dorm rooms and URI’s inability to guarantee campus housing beyond the freshman year is a concern; and

WHEREAS, In March 2000, the Dantner Company, a national real estate research firm, conducted an analysis of student housing in the Kingston area. They studied the strength of the current market and the anticipated future demand for rental housing as well as student enrollment trends, the economy and the need for additional housing options for URI students. They were asked to evaluate the feasibility of constructing apartment-style housing on or near the campus in Kingston. The Dantner Company found, based on their interviews, case studies of other college communities and their evaluation of the Kingston market, that there is a potential resident pool of six thousand one hundred ninety three (6,193) students – graduate and undergraduate – in addition to those already living on campus. Using a capture ratio of ten percent (10%) of the total residential pool, it is Dantner’s opinion that at least six hundred twenty (620) people currently living off-campus would be attracted to new apartments on or near campus; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance  of certain obligations; and

WHEREAS, The design, construction and equipping of these improvements will be financed through RIHEBC revenue bonds, with an expected term of thirty (30) years; and

WHEREAS, Debt service payments would be supported by revenues of the projects financed; now, therefore be it

RESOLVED, That the total amount of debt approved to be issued in the aggregate shall be limited to not more than sixty-six million nine hundred thirty-five thousand dollars ($66,935,000).  Total debt service on the bonds is not expected to exceed four million four hundred thousand dollars ($4,400,000) annually and one hundred twenty-nine million fifteen thousand dollars ($129,015,000) in the aggregate based on an average interest rate of four and eight-tenths (4.8) percent and a thirty (30) year maturity; and be it further

RESOLVED, That the new dormitory facilities are critical to improve and accommodate the daily operation of URI; and that this general assembly hereby approves financing; and it be further

RESOLVED, That this Joint Resolution shall take effect upon its passage by this General Assembly.

SECTION 4. WHEREAS, Rhode Island College has five existing residence halls:  Thorp, Weber, Browne, Willard and Sweet built in 1959, 1964, 1967, 1971, and 1991 respectively, which provide housing for eight hundred thirty (830) students.  Four (4) of the residence halls are over thirty (30) years old and have progressively been renovated and upgraded for telecommunications.  It has been a challenge for the institution to establish a price for housing that covers personnel, operating and debt service expenses while encouraging students to live in these facilities.  Given the age and traditional design style of the existing on-campus housing, the college is faced with the decision to provide more affordable on-campus housing that meets the expectations of today’s students; and

WHEREAS, As competition for students grows between and among public and private institutions, the quality of programs and services such as residential life becomes a critical component upon which students and their parents make choices.  Since housing choices are voluntary, it is important to provide up-to-date facilities for students; otherwise, students will elect to commute from home, live off-campus, or attend another institution; and

WHEREAS, The demand for on-campus housing has been increasing for several years due to a variety of factors.  Waiting lists for available rooms have increased from fifty (50) to one hundred fifty (150) per year over the last three (3) years.  The college has experienced a small but gradual increase in enrollment.  The telecommunications investment in the residence halls has increased the desirability of on-campus housing.  Concurrently, affordable off-campus housing has been decreasing due to increased housing costs and competition from non-student renters and residential buyers; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance of certain obligations; and

WHEREAS, The design construction and equipping of these improvements will be financed through RIHEBC revenue bonds with an expected term of twenty (20) years; and

WHEREAS, Debt service payments will be supported by revenues of the project; now, therefore be it

RESOLVED, That the Board of Governors shall submit the feasibility study and pro forma projections for the project to the chairperson of the House Finance Committee and the chairperson of the Senate Finance Committee; and be it further

RESOLVED, That the total amount of debt approved to be issued in the aggregate shall be limited to not more than seven million five hundred thousand dollars ($7,500,000).  Total debt service on the bonds is not expected to exceed five hundred thousand dollars ($500,000) annually and fourteen million dollars ($14,000,000) in the aggregate based on an average interest rate of four and eight-tenths (4.8) percent and a twenty (20) year maturity; and be it further

RESOLVED, That the new facility is critical to improve and accommodate the daily operation of Rhode Island College and that this General Assembly hereby approves financing; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage by the General Assembly.

SECTION 5. WHEREAS, The facility housing the Rhode Island Traffic Tribunal (“RITT”) was originally a manufacturing building retrofitted into a courthouse in 1974; and

WHEREAS, Over the past twenty (20) years, the RITT has undergone considerable remodeling and rehabilitation to accommodate the changing needs of the Judiciary and the public; and

WHEREAS, Notwithstanding these improvements, the RITT is grossly inadequate for the current and projected needs of the people it serves; and

WHEREAS, The current RITT is not in compliance with the American Disabilities Act, and thus, is not handicap accessible. The governor’s Commission on Handicap Accessibility is unwilling to grant another waiver for ADA noncompliance beyond June 30, 2003 since the current building has been on waiver since February 1997. The cost to bring the current building in compliance with ADA will be approximately eight hundred thousand dollars ($800,000) to one million dollars ($1,000,000); and

WHEREAS, The heating, ventilation, and air conditioning systems are antiquated and need replacement. The building is inadequate to handle the flow of people on a daily basis. The physical appearance of the building is unprofessional, overcrowded, and in a visible state of disrepair. The new facility will also help to relieve the scheduling and customer relation problems that permeate the court operation due to the design of the current courthouse; and

WHEREAS, The current RITT poses a dangerous security risk due to the lack of separation among the public, judges, and staff relative to the circulation traffic and usage of the hallways, corridors, courtrooms, and office space within the building. Since the building was originally utilized as a manufacturing building, security considerations were not factored in the design. As such, a potentially dangerous security hazard is created by the existence of the following high risk situations: the main central corridor system in the building is simultaneously used by judges, the public, and staff; and the easy accessibility to judges’; chambers and staff offices by the public; and

WHEREAS, These and related problems require that a new facility be provided to house the RITT in a safe, efficient, and user-friendly fashion; and

WHEREAS, A new RITT facility will contain at least seven (7) courtrooms and provide four hundred and fifty (450) parking spaces for judges, staff, and the public; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (Rhode Island General Laws. 1956 section 35-18-1, et seq.) requires that the general assembly provide its consent to the issuance of certain obligations; and

WHEREAS, The design, construction, and equipping of these improvements will be financed through Certificates of Participation, with an expected payback period of twenty (20) years. Financing the operation and maintenance of the new RITT facility will be included in the annual operating budget of the Rhode Island Judiciary; and

WHEREAS, The capital costs associated with the project are estimated to be twenty one million eight hundred thousand dollars ($21,800,000). The total issuance would be approximately twenty six million four hundred twenty-five thousand dollars ($26,425,000), with twenty one million eight hundred thousand dollars ($21,800,000) deposited in the construction fund, two million two hundred thousand dollars ($2,200,000) million deposited into a debt service reserve fund, if required, one million nine hundred sixty thousand dollars ($1,960,000) for capitalized interest over eighteen (18) months, and four hundred twenty five thousand dollars ($425,000) available to pay the associated costs of issuance. Total lease payments over twenty (20) years on the twenty six million four hundred twenty five thousand dollars ($26,425,000) million issuance are projected to be forty two million nine hundred thousand dollars ($42,900,000) million. This assumes an average coupon of five percent (5.0%). The lease payments would be financed within the Department of Administration from general revenue appropriations and any other sources available to the agencies occupying the court;

NOW, THEREFORE, BE IT RESOLVED,

THAT, a new RITT facility is critical to ensure that justice is administered in a safe and efficient manner.

THAT, this general assembly hereby approves financing in an amount not to exceed twenty-six million four hundred twenty-five thousand dollars ($26,425,000) for the provision of a new RITT facility.

BE IT FURTHER RESOLVED,

THAT, this Joint Resolution shall take effect immediately upon its passage by this general assembly with funding to be included in the FY 2005 Appropriations Act.

SECTION 6. WHEREAS, The Rhode Island Economic Development Corporation (the “Economic Development Corporation”) is a public instrumentality of the State of Rhode Island (the “State”) created by the general assembly pursuant to R.I. General Laws section 42-64-1 et seq. (as enacted, reenacted and amended, the “Act”); and

WHEREAS, It is the policy of the state to retain existing industries and to induce, encourage and attract new industries through the acquisition, construction, reconstruction and rehabilitation of industrial, manufacturing, recreational, and commercial facilities, as well as transportation, residential, environmental, utility, public service, institutional and civic and community facilities, and to develop sites for such facilities; and

WHEREAS, The Act provides that the Economic Development Corporation shall have the power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; and

WHEREAS, The Economic Development Corporation proposes to enter into a loan agreement or other financing agreement with Amgen pursuant to which Amgen will be obligated to make payments in an amount necessary to pay debt service related to not more than six million six hundred thousand dollars ($6,600,000) bonds; and

WHEREAS, The Economic Development Corporation proposes to enter into a loan agreement or other financing agreement with the town of Coventry pursuant to which the town of Coventry will be obligated to make payments in the amount necessary to pay debt service related to not more than three million four hundred thousand dollars ($3,400,000) bonds; and

WHEREAS, The Economic Development Corporation, through the use of the capital reserve fund mechanism under the act, will pay debt service on the bonds to the extent amounts received from Amgen and the town of Coventry are insufficient to pay debt service on the bonds. Therefore, the maximum fiscal year obligation the of the Economic Development Corporation and the State of Rhode Island is the total debt service which is approximately eight hundred twenty five thousand dollars ($825,000); and

WHEREAS, In the event that not all of the bond proceeds are used to carry out the specified project, the Economic Development Corporation will use any remaining funds to pay debt service on the bonds;

NOW, THEREFORE, BE IT RESOLVED,

THAT, this general assembly hereby approves the Economic Development Corporation’s issuance of not more than ten million dollars ($10,000,000) bonds and the issue of the capital reserve fund mechanism for the purposes outlined herein;

THAT, the bonds will be special obligations of the Economic Development Corporation payable from funds received by the Economic Development Corporation under the loan agreements and the capital reserve fund. The Economic Development Corporation’s and the state’s maximum liability will be the total debt service on the bonds, estimated to be eight hundred twenty five thousand dollars ($825,000) per year or sixteen million five hundred thousand dollars ($16,500,000) in the aggregate based on level debt service, an average interest rate of five percent(5.00%) and a twenty (20) year maturity;

THAT, the bonds will not constitute indebtedness of the state or any of its subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is pledged except to the extent that the state funds any deficiency in the capital reserve fund in amount not to exceed eight hundred twenty five thousand dollars ($825,000) per year subject to annual budget appropriations; and

BE IT FURTHER RESOLVED,

THAT, this Joint Resolution shall take effect immediately upon its passage by this general assembly, provided that the delivery of the bonds shall be not later than one  year from the date of such passage.

SECTION 7. WHEREAS, The Rhode Island Economic Development Corporation is a public instrumentality of the State of Rhode Island (the “State”), created by the general assembly pursuant to Rhode Island General Laws section 42-64-1 et seq. (as enacted, reenacted and amended, the (“Act”); and

WHEREAS, The Act declares, in part, that new industrial, manufacturing, recreational, and commercial facilities are required to attract and house new industries and thereby reduce the hazards of unemployment; and that unaided efforts of private enterprises have not met and cannot meet the needs of providing those facilities due to problems encountered in assembling suitable building sites, lack of adequate public service, unavailability of private capital for development, and the inability of private enterprise alone to plan, finance, and coordinate industrial, recreational, and commercial development; and

WHEREAS, The Act further declares it to be the public policy of the state to furnish proper and adequate airport facilities within the state and to encourage the integration of these facilities so far as practicable; and

WHEREAS, In furtherance of these goals, it is the policy of the state to retain existing industries and to induce, encourage and attract new industries through the acquisition, construction, reconstruction and rehabilitation of industrial, manufacturing, recreational, and commercial facilities, as well as transportation, residential, environmental, utility, public service, institutional and civic and community facilities, and to develop sites for such facilities; and

WHEREAS, The Act has empowered the Rhode Island Economic Development Corporation to establish subsidiary corporations to exercise its powers and functions, or any of them, and, pursuant to such power, the Rhode Island Economic Development Corporation has established the Rhode Island Airport Corporation to plan, develop, construct, finance, manage, and operate airport facilities in the state; and

WHEREAS, The Act provides that the Rhode Island Airport Corporation shall have the power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; and

WHEREAS, The Act also provides that the Rhode Island Airport Corporation shall have the power to sell, mortgage, lease, exchange, transfer or otherwise dispose of or encumber any project, (or in the case of a sale, to accept a purchase money mortgage in connection therewith) or to grant options for any such purposes with respect to any real or personal property or interest therein, all of the foregoing for such consideration as the Rhode Island Airport Corporation shall determine. Any lease by the Rhode Island Airport Corporation to another party may be for such part of the Rhode Island Airport Corporation’s property, real or personal, for such period, upon such terms or conditions, with or without an option on the part of the lessee to purchase any or all of the leased property for such consideration, at or after the retirement of all indebtedness incurred by the Rhode Island Airport Corporation on account thereof, as the Rhode Island Airport Corporation shall determine; and

WHEREAS, The Act authorizes the Rhode Island Economic Development Corporation to borrow money and issue bonds for any of its corporate purposes; and

WHEREAS, Pursuant to Rhode Island General Laws sections 35-18-3 and 35-18-4, the Rhode Island Economic Development Corporation has requested the approval of the general assembly of the Rhode Island Economic Development Corporation’s issuance of airport revenue bonds (the “Bonds”) for the purpose of providing funds to the Rhode Island Airport Corporation for financing the acquisition, installation and construction of an explosive detection system and the construction of additional administrative space at T.F. Green Airport (the “2003 Airport  Project”) funding capitalized interest, costs of issuing the bonds and related costs, and the establishment reserves for the project and the bonds, including a debt service reserve fund; and

WHEREAS, The financing of the 2003 Airport Project will be accomplished through one (1) or more loan agreements having the Rhode Island Airport Corporation as borrower, such agreement or agreements to require that the Rhode Island Airport Corporation make loan payments in an amount equal to the debt service on the bonds.

RESOLVED, The general assembly hereby approves the Rhode Island Economic Development Corporation’s issuance of the bonds. The bonds will be special obligations of the Rhode Island Economic Development Corporation payable exclusively from loan repayments under a loan agreement with the Rhode Island Airport Corporation and from bond proceeds, funds, accounts, and properties and the proceeds thereof pledged therefor, and thus the Rhode Island Economic Development Corporation’s maximum liability will be limited to loan repayments received under the loan agreement and the aggregate amount of such other funds, accounts, properties, and proceeds.

RESOLVED, That the total amount of debt approved to be issued in the aggregate shall be limited to not more than fifty-five million one hundred fifty thousand dollars ($55,150,000). Total debt service on the bonds is not expected to exceed four million five hundred thousand dollars ($4,500,000) annually and one hundred seven million dollars ($107,000,000) in the aggregate based on an average interest rate of five and three quarters percent (5.75%) and a twenty-five (25)-year maturity.

RESOLVED, The General Assembly hereby approves the Rhode Island Airport Corporation’s entering into the loan agreements described above. Payments under the loan agreements shall be derived exclusively from project revenues and such other proceeds, funds, accounts, projects and the proceeds thereof as the Rhode Island Airport Corporation may pledge therefor.

RESOLVED, None of the bonds or the loan agreements shall constitute indebtedness of the state or a debt for which the full faith and credit of the state is pledged or a moral obligation thereof.

RESOLVED, That this resolution shall apply to bonds issued within one year of the date of passage of this resolution.

            SECTION 8. WHEREAS, The Rhode Island Department of Transportation’s (“RIDOT”) detailed review of the State of Rhode Island’s infrastructure has determined that five (5) major transportation projects must be constructed by the year 2010 in order to preserve and maintain the public safety and continued economic success and viability of the State of Rhode Island, its ports and infrastructure; and

            WHEREAS, RIDOT has explored various options to finance the costs of the five (5) major transportation projects and determined that the federal-aid financing program authorized in federal law by Section 311 of the National Highway System Designation Act of 1995 and commonly referred to as the Grant Anticipation Revenue Vehicle Program (“GARVEE Program”) represents the best financing mechanism for the State of Rhode Island inasmuch as the GARVEE Program will accelerate the funding and construction of the five (5) major transportation projects; and

            WHEREAS, The GARVEE Program allows a state to issue bonds (“GARVEE Bonds”) or other debt instruments backed by future appropriations for federal-aid transportation projects whereby such amounts are used to cover an assortment of bond-related costs, including principal and interest payments, issuance costs, insurance, and other costs incidental to a financing; and

            WHEREAS, Among other advantages, GARVEE Bonds may be issued as special revenue bonds without a full faith and credit pledge by the State of Rhode Island; and

            WHEREAS, RIDOT has determined that the GARVEE Program should be utilized to complete the following five (5) major transportation projects:  

(1) Sakonnet River Bridge: The current Sakonnet River Bridge (the “Current Sakonnet Bridge”), which currently serves the citizens, businesses, marine trades and port facilities of Aquidneck Island, is dilapidated and in dire need of repair, and based on studies and analysis of RIDOT, a new Sakonnet River Bridge (the “New Sakonnet Bridge”) should be constructed as opposed to reconstruction of the Current Sakonnet Bridge; and provided further that RIDOT has determined such construction of the New Sakonnet Bridge is necessary for the continued economic success and viability of the citizens, businesses, transportation and port facilities of Aquidneck Island and otherwise in the best interests of the State of Rhode Island; and

(2) Route 195 Relocation: It has been deemed necessary and desirable to relocate Interstate Route 195 (“Route 195 Relocation”) in order to better serve the transportation needs of the State of Rhode Island including, but not limited to, the continued economic success and viability of the citizens, businesses, transportation and port facilities both in the city of Providence and elsewhere and is otherwise in the best interest of the State of Rhode Island based on studies and analysis of RIDOT; and    

(3) Washington Bridge: The current Washington Bridge (the “Current Washington Bridge”), which currently serves the citizens, businesses and port facilities of the State of Rhode Island both in the city of Providence and elsewhere, is dilapidated and in dire need of repair and based on studies and analysis of RIDOT a new Washington Bridge (the “New Washington Bridge”) as opposed to reconstruction of the Current Washington Bridge is necessary for the continued economic success and viability of the citizens, businesses, transportation and port facilities of the city of Providence and elsewhere and otherwise in the best interest of the State of Rhode Island; and 

(4) Freight Rail Improvement Project: In order to provide for the continued economic success of the citizens of the State of Rhode Island and the viability of transportation systems within the State of Rhode Island to move freight by rail due to conflicts with passenger rails and antiquated freight rails, and to link Rhode Island’s ports and various modes of transportation within the State of Rhode Island, the (“Freight Rail Improvement Project”) based on studies and analysis of RIDOT; and

(5) 403 Project: In order to provide for the continued transportation needs and the continued economic viability and success of the State of Rhode Island and to link Rhode Island’s ports and various modes of transportation within the State of Rhode Island, it has been determined that the so-called Phase II of the Route 403 Project (“403 Project”) must be completed based on studies and analysis of RIDOT; and

WHEREAS, The development and planning of the New Sakonnet Bridge, Route 195 Relocation, New Washington Bridge, Freight Rail Improvement Project and 403 Project included the participation of RIDOT, municipal and/or town planners, safety officials, engineering consultants and other parties necessary in developing a design and construction plan for each project and also examined the available options for the completion of each project, and agreed that the New Sakonnet Bridge, Route 195 Relocation, New Washington Bridge, Freight Rail Improvement Project and 403 Project were each necessary to adequately serve the citizens, businesses and port facilities of the State of Rhode Island and otherwise in the best interests of the State of Rhode Island; and 

WHEREAS, It is anticipated and estimated that the State of Rhode Island will receive one hundred fifty two million dollars ($152,000,000) in grant funds from the Federal Highway Administration (“FHWA”), with the assistance of RIDOT in support of the implementation of the New Sakonnet Bridge; and

WHEREAS, It is anticipated that the State of Rhode Island will receive four hundred twenty million dollars ($420,000,000) in grant funds from the FHWA, with the assistance of RIDOT in support of the Route 195 Relocation; and

WHEREAS, It is anticipated that the State of Rhode Island will receive one hundred thirty-two million eight hundred thousand dollars ($132,800,000) in grant funds from the FHWA, with the assistance of RIDOT in support of the implementation of the plan to construct a new Washington Bridge; and

WHEREAS, It is anticipated that the State of Rhode Island will receive fifty-one million two hundred thousand dollars ($51,200,000) in grant funds from the FHWA, with the assistance of RIDOT in support of the implementation of the plan to complete the Freight Rail Improvement Project; and   

WHEREAS, It is anticipated that the State of Rhode Island will receive one hundred twenty-nine million two hundred thousand dollars ($129,200,000) in grant funds from the FHWA, with the assistance of RIDOT in support of the implementation of the plan to complete Phase II of the Route 403 Project; and 

WHEREAS, In connection with the issuance of GARVEE Bonds, the State of Rhode Island, acting by and through RIDOT, may elect to receive in lieu of certain monies which would otherwise have been received as reimbursement from FHWA for project costs for the five (5) projects referenced herein, debt service payments to repay indebtedness in the form of bonds or notes issued to finance the costs of the construction and financing of the five (5) projects referenced above; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws section  35-18-1, et seq.) requires the General Assembly to provide its consent to the issuance of certain  obligations for essential public facilities of the type referenced herein; and

WHEREAS, The design, construction, equipping and completion of these improvements will be financed in whole or in part either through revenue bonds issued pursuant to the GARVEE Program by the State of Rhode Island or through revenue bonds issued pursuant to the GARVEE Program by the Rhode Island Economic Development Corporation (the "RIEDC") or through revenue bonds issued pursuant to the GARVEE Program by another agency, instrumentality or quasi-public corporation established by the State of Rhode Island now or hereafter and otherwise authorized and empowered pursuant to law to issue bonds of the type referenced herein for the types of projects enumerated herein, with either issuance having an expected term of twenty (20) years, and annual revenues for the operation and maintenance of the New Sakonnet Bridge, Route 195 Relocation, New Washington Bridge, Freight Rail Improvement Project, and 403 Project to be included in the annual operating budget of RIDOT; and

WHEREAS, The capital costs and anticipated bond issuance amounts associated with these projects are estimated to be:

(1) For the New Sakonnet Bridge: (a) a total capital cost of one hundred seventeen million eight hundred thousand dollars ($117,800,000); (b) the total debt issuance of GARVEE and/or other than GARVEE Bonds associated with payment of the capital costs, financing costs, costs of issuance or insurance or credit enhancement would be an amount not to exceed one hundred twenty six million two hundred forty thousand dollars ($126,240,000); (c) with respect to the total debt issuance of one hundred twenty six million two hundred forty thousand dollars ($126,240,000) referenced in subsection (b) above, an amount not to exceed twenty five million two hundred forty eight thousand dollars ($25,248,000) of bonds would be repaid by the State of Rhode Island with other than FHWA funds (the "State Match Bonds"); (d) total debt service payments on the State Match Bonds over an expected 20 year period on the twenty five million two hundred forty eight thousand dollars ($25,248,000) issuance are projected to be thirty seven million four hundred fifty eight thousand dollars ($37,458,000), assuming an average coupon rate of 5.1%; and (e) the debt service payments on the State Match Bonds would be supported from the Motor Fuel Tax Allocation as hereinafter defined; and total debt service on all bonds of one hundred ninety million one hundred fifty-five thousand four hundred twenty dollars ($190,155,420); and

(2) For the Route 195 Relocation: (a) a total capital cost of three hundred twenty five million dollars ($325,000,000); (b) the total debt issuance of GARVEE and/or other than GARVEE Bonds associated with payment of the capital costs, financing costs, costs of issuance or insurance or credit enhancement would be an amount not to exceed three hundred forty eight million two hundred eighty five thousand dollars ($348,285,000); (c) with respect to the total debt issuance of $348,285,000 referenced in subsection (b) above, an amount not to exceed sixty nine million six hundred fifty seven thousand dollars ($69,657,000) of bonds would be State Match Bonds; (d) total debt service payments on the State Match Bonds over an expected twenty (20) year period on the sixty nine million six hundred fifty seven thousand dollars ($69,657,000) issuance are projected to be one hundred three million three hundred forty four thousand dollars ($103,344,000), assuming an average coupon rate of 5.1%; and (e) the debt service payments on the State Match Bonds would be supported from the Motor Fuel Tax Allocation as hereinafter defined; and total debt service on all bonds of five hundred twenty-four million six hundred twenty-two thousand three hundred twenty dollars ($524, 622,320); and

(3) For the New Washington Bridge: (a) a total capital cost of $80,000,000; (b) the total debt issuance of GARVEE and/or other than GARVEE Bonds associated with payment of the capital costs, financing costs, costs of issuance or insurance or credit enhancement would be an amount not to exceed $85,430,000; and (c) no State Match Bonds will be issued in connection with the New Washington Bridge as all costs related to the construction and financing of this project will be covered by the FHWA funds due the State of Rhode Island; and total debt service on all bonds of one hundred thirty-two million eight hundred thousand dollars ($132,800,000); and

(4) For the Freight Rail Improvement Project: (a) a total capital cost of $37,700,000; (b) the total debt issuance of GARVEE and/or other than GARVEE Bonds associated with payment of the capital costs, financing costs, costs of issuance or insurance or credit enhancement would be an amount not to exceed forty two million five hundred and five thousand dollars ($42,505,000); (c) with respect to the total debt issuance of forty two million five hundred and five thousand dollars ($42,505,000) referenced in subsection (b) above, an amount not to exceed eight million five hundred thousand dollars ($8,500,000) of bonds would be State Match Bonds; (d) total debt service payments on the State Match Bonds over an expected twenty (20) year period on the eight million five hundred thousand dollars ($8,500,000) issuance are projected to be twelve million six hundred and eight thousand dollars ($12,608,000), assuming an average coupon rate of 5.1%; and (e) the debt service payments on the State Match Bonds would be supported from the Motor Fuel Tax Allocation as hereinafter defined; and total debt service on all bonds of sixty-four million dollars ($64,000,000); and

(5) For the 403 Project: (a) a total capital cost of one hundred million dollars  ($100,000,000); (b) the total debt issuance of GARVEE and/or other than GARVEE Bonds associated with payment of the capital costs, financing costs, costs of issuance or insurance or credit enhancement would be an amount not to exceed one hundred seven million one hundred sixty five thousand dollars ($107,165,000); (c) with respect to the total debt issuance of one hundred seven million one hundred sixty five thousand dollars ($107,165,000) referenced in subsection (b) above, an amount not to exceed twenty one million four hundred thirty three thousand dollars ($21,433,000) of bonds would be  State Match Bonds; (d) total debt service payments on the State Match Bonds over an expected 20 year period on the $21,433,000 issuance are projected to be $31,798,000, assuming an average coupon rate of 5.1%; and (e) the debt service payments on the State Match Bonds would be supported from the Motor Fuel Tax Allocation as hereinafter defined; and total debt service on all bonds of one hundred sixty-one million four hundred twenty-two thousand two hundred sixty dollars ($161,422,260);  now, therefore be it

RESOLVED AND ENACTED, That the New Sakonnet Bridge, Route 195 Relocation, New Washington Bridge, Freight Rail Improvement Project and 403 Project are each essential public facilities and critical to ensure the economic viability of the citizens, businesses, transportation, marine trades and port facilities of the State of Rhode Island and otherwise in the best interests of the State of Rhode Island, and that this General Assembly hereby approves the following financing:

(1) For the New Sakonnet Bridge: the issuance of an amount not to exceed one hundred twenty six million two hundred forty thousand dollars ($126,240,000) in GARVEE Bonds, the repayment of which shall be derived from and supported by FHWA funds due the State of Rhode Island and an amount not to exceed twenty five million two hundred forty eight thousand dollars ($25,248,000) in State Match Bonds to be issued by the State of Rhode Island or the RIEDC or a subsidiary thereof or other agency, instrumentality or quasi-public corporation established by the State of Rhode Island now or hereafter and otherwise authorized and empowered pursuant to law to issue bonds of the type referenced herein for the types of projects enumerated herein and to incur and pay debt service payments for such State Match Bonds in an amount not to exceed thirty seven million four hundred fifty eight thousand dollars ($37,458,000) and total debt service on all bonds of one hundred ninety million one hundred fifty-five thousand four hundred twenty dollars ($190,155,420) as specified in (1) above for bonds issued for the New Sakonnet Bridge such debt service payments to be made from the Motor Fuel Tax Allocation, as hereinafter defined, or such other revenue source as the Rhode Island General Assembly shall designate from time to time for the construction, design, maintenance, completion, finance costs, including, but not limited to, costs of issuance, credit enhancement, legal counsel and underwriter fees and expenses and other costs associated with the New Sakonnet Bridge;

(2) For the Route 195 Relocation:  the issuance of an amount not to exceed three hundred forty eight million two hundred eighty five thousand dollars ($348,285,000) in  GARVEE Bonds, the repayment of which shall be derived from and supported by FHWA funds due the State of Rhode Island and an amount not to exceed sixty nine million six hundred fifty seven thousand dollars ($69,657,000) in State Match Bonds to be issued by the State of Rhode Island or the RIEDC or a subsidiary thereof or other agency, instrumentality or quasi-public corporation established by the State of Rhode Island now or hereafter and otherwise authorized and empowered pursuant to law to issue bonds of the type referenced herein for the types of projects enumerated herein and to incur and pay debt service payments for such State Match Bonds in an amount not to exceed one hundred three million three hundred forty-four thousand dollars ($103,344,000) and total debt service on all bonds of five hundred twenty-four million six hundred twenty–two thousand three hundred twenty dollars ($524,622,320) as specified in (2) above for bonds issued for the Route 195 Relocation such debt service payments to be made from the Motor Fuel Tax Allocation, as hereinafter defined, or such other revenue source as the Rhode Island General Assembly shall designate from time to time, for the construction, design, maintenance, completion, finance costs, including, but not limited to, costs of issuance, credit enhancement, legal counsel and underwriter fees and expenses and other costs associated with the Route 195 Relocation;

(3) For the New Washington Bridge: the issuance of an amount not to exceed $85,430,000 in GARVEE Bonds, the repayment of which shall be wholly derived from and supported by FHWA funds due the State of Rhode Island; and total debt service on all bonds of one hundred thirty-two million eight hundred thousand dollars ($132,800,000);

(4) For the Freight Rail Improvement Project:  the issuance of an amount not to exceed forty-two million five hundred five thousand dollars ($42,505,000) in GARVEE Bonds, the repayment of which shall be derived from and supported by FHWA funds due the State of Rhode Island and an amount not to exceed eight million five hundred thousand dollars ($8,500,000) in State Match Bonds to be issued by the State of Rhode Island or the RIEDC or a subsidiary thereof or other agency, instrumentality or quasi-public corporation established by the State of Rhode Island now or hereafter and otherwise authorized and empowered pursuant to law to issue bonds of the type referenced herein for the types of projects enumerated herein and to incur and pay debt service payments for such State Match Bonds in an amount not to exceed twelve million six hundred eight thousand dollars ($12,608,000) and total debt service on all bonds of sixty-four million dollars ($64,000,000) as specified in (4) above for bonds issued for the Freight Rail Improvement Project such debt service payments to be made from the Motor Fuel Tax Allocation, as hereinafter defined, or such other revenue source as the Rhode Island General Assembly shall designate from time to time for the construction, design, maintenance, completion, finance costs, including, but not limited to, costs of issuance, credit enhancement, legal counsel and underwriter fees and expenses and other costs associated with the Freight Rail Improvement Project; and

(5) For the 403 Project:  the issuance of an amount not to exceed one hundred seven million one hundred sixty five thousand dollars ($107,165,000) in GARVEE Bonds, the repayment of which shall be derived from and supported by FHWA funds due the State of Rhode Island and an amount not to exceed twenty one million four hundred thirty three thousand dollars ($21,433,000) in State Match Bonds to be issued by the State of Rhode Island or the RIEDC or a subsidiary thereof or other agency, instrumentality or quasi-public corporation established by the State of Rhode Island now or hereafter and otherwise authorized and empowered  pursuant to law to issue bonds of the type referenced herein for the types of projects enumerated herein and to incur and pay debt service payments for such State Match Bonds in an amount not to exceed thirty one million seven hundred ninety eight thousand eight hundred dollars ($31,798,800) and total debt service on all bonds of one hundred sixty-one million four hundred twenty-two thousand two hundred sixty dollars ($161,422,260) as specified in (5) above for bonds issued for the 403 Project such debt service payments to be made from the Motor Fuel Tax Allocation, as hereinafter defined, or such other revenue source as the Rhode Island General Assembly shall designate from time to time for the construction, design, maintenance, completion, finance costs, including, but not limited to, costs of issuance, credit enhancement, legal counsel and underwriter fees and expenses and other costs associated with the 403 Project; and

Further, that the Governor of the State of Rhode Island or the Director of the Rhode Island Department of Transportation or the Director of the Rhode Island Department of Administration or the Executive Director of the Rhode Island Economic Development Corporation each be and each hereafter are, acting singly, authorized and empowered by the Rhode Island General Assembly to enter into a financing lease, guarantee, loan and trust agreement, indenture or other obligations or contracts or agreements and to take such other actions as such official shall deem necessary or appropriate in order to issue or facilitate the issuance of the GARVEE Bonds, and/or other bonds referenced in (1) through (5) above and to provide the Rhode Island Economic Development Corporation or any subsidiary thereof or other instrumentality, agency or quasi-public corporation otherwise authorized and empowered to issue the bonds specified in this Joint Resolution and Act for the projects specified above with the necessary debt service payments up to the amounts specified in (1) through (5) above and the necessary security for such bonds consistent with the provisions of this Joint Resolution and Act,   including any action to pledge, assign or otherwise transfer the right to receive all or any portion of future FHWA appropriations for federal-aid transportation projects or other revenues permitted by the laws of the state of Rhode Island to secure or provide for the payment of any such GARVEE or other bonds; and

Further, that any issuance of bonds or notes authorized in the preceding paragraphs (1) through (5) may be effectuated in an aggregate principal amount representing the sum of the authorized GARVEE Bonds and State Match Bonds in the event that GARVEE Bonds are secured by both federal moneys and state revenue sources, and that the Rhode Island General Laws be amended as follows:

SECTION 9. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor Fuel Tax" is hereby amended to read as follows:

31-36-20. Disposition of proceeds. -- (a) (1) Notwithstanding any other provision of law to the contrary, all moneys paid into the general treasury under the provisions of this chapter or chapter 37 of this title shall be applied to and held in a separate fund and be deposited in any depositories that may be selected by the general treasurer to the credit of the fund, which fund shall be known as the Intermodal Surface Transportation Fund; provided, that six and one-fourths cents ($0.0625) six and eighty-five hundredths cents ($0.0685) per gallon of the tax imposed and accruing for the liability under the provisions of section 31-36-7, less refunds and credits, shall be transferred to the Rhode Island public transit authority as provided under section 39-18-21, and one cent ($.01) per gallon shall be transferred to the Elderly/Disabled Transportation Program of the department of elderly affairs, and the remaining cents per gallon shall be available for general revenue as determined by the following schedule:

 (i) For the fiscal year 2000, three and one fourth cents ($0.0325) shall be available for general revenue.

 (ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for general revenue.

 (iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general revenue.

 (iv) For the fiscal year 2003, two and one-fourth cent (.0225) shall be available for general revenue.

 (v) For the fiscal year 2004, and thereafter, two cents ($0.02) one and four-tenths cents ($.014) shall be available for general revenue.

 (2) All deposits and transfers of funds made by the tax administrator under this section including those to the Rhode Island public transit authority, the department of elderly affairs and the general fund, shall be made within twenty-four (24) hours of receipt or previous deposit of the funds in question.

(3) Commencing in fiscal year 2004, the Director of the Rhode Island Department of Transportation is authorized to remit, on a monthly or less frequent basis as shall be determined by the Director of the Rhode Island Department of Transportation, or his or her designee, or at the election of the Director of the Rhode Island Department of Transportation, with the approval of the Director of the Department of Administration, to an indenture trustee, administrator, or other third party fiduciary, in an amount not to exceed two cents ($.02) per gallon of the gas tax imposed, in order to satisfy debt service payments on aggregate bonds issued pursuant to a Joint Resolution and Enactment Approving the Financing of Various Department of Transportation Projects adopted during the 2003 session of the General Assembly, and approved by the Governor.

 (b) Notwithstanding any other provision of law to the contrary, all other funds in the fund shall be dedicated to the department of administration, subject to annual appropriation by the general assembly. The director of administration shall submit to the general assembly, budget office and office of the governor annually an accounting of all amounts deposited in and credited to the fund together with a planned budget for proposed expenditures for the succeeding fiscal year in compliance with sections 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized and directed to draw his or her orders upon the general treasurer for the payments of any sum or portion of the sum that may be required from time to time upon receipt of properly authenticated vouchers.

 (c) At any time the amount of the fund is insufficient to fund the expenditures of the department of administration, not to exceed the amount authorized by the general assembly, the general treasurer is authorized, with the approval of the governor and the director of administration, in anticipation of the receipts of monies enumerated in section 31-36-20 to advance sums to the fund, for the purposes specified in section 31-36-20, any funds of the state not specifically held for any particular purpose. However, all the advances made to the fund shall be returned to the general fund immediately upon the receipt by the fund of proceeds resulting from the receipt of monies to the extent of the advances.

SECTION 10. Sections 42-64-7 and 42-64-7.1 of the General Laws in Chapter 42-64 entitled "Rhode Island Economic Development Corporation" are hereby amended to read as follows:

42-64-7. Additional general powers. -- In addition to the powers enumerated in section 42-64-6, except to the extent inconsistent with any specific provision of this chapter, the corporation shall have power:

 (1) To undertake the planning, development, construction, financing, management, operation of any project, and all activities in relation thereto.

 (2) (i) To sell, mortgage, lease, exchange, transfer, or otherwise dispose of or encumber any port project, (or in the case of a sale, to accept a purchase money mortgage in connection with any port project) or to grant options for any purposes with respect to any real or personal property or interest in real or personal property, all of the foregoing for consideration as the corporation shall determine. Any lease by the corporation to another party may be for any part of the corporation's property, real or personal, for any period, upon any terms or conditions, with or without an option on the part of the lessee to purchase any or all of the leased property for any consideration, at or after the retirement of all indebtedness incurred by the corporation on account thereof, as the corporation shall determine.

 (ii) Without limiting the generality of the foregoing, the corporation is expressly empowered to lease or sell any part of the real or personal property owned or controlled by the corporation to the state, or any department of the state or to any municipality. The provisions of this section or of any other laws of this state (other than this chapter) restricting the power of the state, its departments or any municipality, to lease or sell property, or requiring or prescribing publication of notice of intention to lease or sell, advertising for bids, the terms of contracts of lease or sale, that would in any manner interfere with the purpose of this section, which is to provide for the mutual cooperation by and between the corporation and the state, its departments or any municipality, to the fullest extent possible, are not applicable to leases and sales made pursuant to this section.

 (3) To prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify those plans, specifications, designs, or estimates.

 (4) To manage any project, whether then owned or leased by the corporation, and to enter into agreements with the state or any municipality or any agency or their instrumentalities, or with any person, firm, partnership, or corporation, either public or private, for the purpose of causing any project to be managed.

 (5) To provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, firm, partnership, or corporation, whether it be public or private, in order to carry out the purposes of this chapter.

 (6) Subject to the provisions of any contract with note holders or bond holders to consent to the modification, with respect to rate of interest, time of payments of any installment of principal or interest, security or any other term of any mortgage, mortgage loan, mortgage loan commitment, contract, or agreement of any kind to which the corporation is a party.

 (7) In connection with any property on which it has made a mortgage loan, to foreclose on that property or commence an action to protect or enforce any right conferred upon it by law, mortgage, contract, or other agreement and to bid for and purchase the property at any foreclosure or any other sale, or to acquire or take possession of the property; and in that event the corporation may complete, administer, pay the principal of, or interest on any obligations incurred in connection with the property, dispose of, and otherwise deal with the property in a manner as may be necessary or desirable to protect the interest of the corporation therein.

 (8) As security for the payment of principal and interest on any bonds or notes or any agreements made in connection therewith, to mortgage and pledge any or all of its projects and property, whether then owned or thereafter acquired, and to pledge the revenues and receipts from all or part thereof, and to assign or pledge the leases, sales contracts or loan agreements or other agreements on any portion or all of its projects and property and to assign or pledge the income received by virtue of the lease, sales contracts, loan agreements or other agreements.

 (9) To invest any funds of the corporation including funds held in reserve or sinking funds, or any moneys not required for immediate use or disbursement at the discretion of the corporation, in: (i) obligations of the state or the United States, (ii) obligations of the principal and interest of which are guaranteed by the state or the United States, (iii) obligations of agencies and instrumentalities of the state or the United States, or (iv) certificates of deposits of banks and trust companies or shares of building loan associations organized under the laws of the state or doing business in the state or (v) any obligations, securities, and other investments as shall be specified in resolutions of the corporation.

 (10) To engage the services of consultants on a contract basis for rendering professional and technical assistance and advice, and to employ architects, engineers, attorneys, accountants, construction, and financial experts and any other advisors, consultants, and agents as may be necessary in his or her judgment, and to fix their compensation.

 (11) To contract for and to accept any gifts or grants or loans or funds or property or financial or other assistance in any form from the United States or any agency or instrumentality of the United States or from the state or any agency or instrumentality of the state or from any other source and to comply, subject to the provisions of this chapter, with the terms and conditions of this contract.

 (12) To enter into agreements with any municipality or political subdivision, either directly or on behalf of any other party which holds legal title to all or any portion of a project as the lessee from the corporation designated pursuant to paragraph (c) of section 42-64-20, providing that the corporation or the lessee shall pay annual sums in lieu of taxes to the municipality or political subdivision of the state in respect to any real or personal property which is owned by the corporation or the lessee and is located in the municipality or political subdivision.

 (13) To borrow money and to issue negotiable bonds and notes, and to provide for the rights of the holders of these bonds and notes, for the purpose of providing funds to pay all or any part of the cost of any port project or for the purpose of refunding any of these bonds issued.

 (14) To construct, acquire, own, repair, develop, operate, maintain, extend, and improve, rehabilitate, renovate, furnish, and equip one or more port projects and to pay all or any part of the costs of these bonds and notes from the proceeds of bonds of the corporation or from any contribution, gift, or donation or other funds made available to the corporation for those purposes.

 (15) To fix, charge and collect rents, fees, tolls, and charges for the use of any port project and to alter and investigate rates, and practices of charging, which affect port projects so as to increase commerce in the state.

 (16) To prescribe rules and regulations deemed necessary or desirable to carry out the purposes of this chapter including rules and regulations to insure maximum use and proper operation of port projects.

 (17) To establish penalties for violations of any order, rule, or regulation of the corporation, and a method of enforcing these penalties.

 (18) To develop, maintain, and operate foreign trade zones under those terms and conditions that may be prescribed by law.

 (19) To impose administrative penalties in accordance with the provisions of section 42-64-9.2.

 (20) To make assessments and impose reasonable and just user charges, and to pay for those expenses that may be required by law or as may be determined by the corporation to be necessary for the maintenance and operation of the sewage treatment facility.

 (21) To establish a sewage pretreatment program, and to require as a condition to the grant or reissuance of any approval, license, or permit required under the program that the person applying for the approval, license or permit, pay to the corporation a reasonable fee based on the cost of reviewing and acting upon the application and based on the costs of implementing the program.  In addition, where a violation of any of the provisions of this title or any permit, rule, regulation, or order issued pursuant to this title have occurred, the violator shall reimburse the corporation for the actual costs of implementing and enforcing the terms of the permit, rule, regulation or order as a condition to the grant or reissuance of any approval.

 (22) To assist urban communities revitalize their local economics.

 (23) To provide assistance to minority businesses and to neighborhoods where there is insufficient economic and business investment.

 (24) To support and assist entrepreneurial activity by minorities and by low and moderate income persons.

(25)  To issue bonds and notes of the type and for those projects and for those purposes specified in the Joint Resolution and Act of the General Assembly adopted by the Rhode Island House of Representatives and the Rhode Island Senate; and to make such determinations, enter into such agreements, to deliver such instruments and to take such other actions as it shall deem necessary or desirable to effectuate the financing of such projects.

42-64-7.1. Subsidiaries. -- (a) (1) The parent corporation shall have the right to exercise and perform its powers and functions, or any of them, through one or more subsidiary corporations whose creation shall be approved and authorized by the general assembly.

 (2) Express approval and authorization of the general assembly shall be deemed to have been given for all legal purposes on July 1, 1995 for the creation and lawful management of a subsidiary corporation created for the management of the Quonset Point/Davisville Industrial Park, that subsidiary corporation being managed by a board of directors, the members of which shall be constituted as follows: (i) two (2) members who shall be appointed by the town council of the town of North Kingstown; (ii) two (2) members who shall be residents of the town of North Kingstown appointed by the governor; (iii) four (4) members who shall be appointed by the governor; (iv) the chairperson, who shall be the executive director of the economic development corporation; and (v) non-voting members, who shall be the members of the general assembly whose districts are comprised in any part by areas located within the town of North Kingstown. Upon receipt of approval and authorization from the general assembly, the parent corporation by resolution of the board of directors may direct any of its directors, officers, or employees to create subsidiary corporations pursuant to chapter 1.1 or 6 of title 7 or in the manner described in subsection (b); provided, that the parent corporation shall not have any power or authority to create, empower or otherwise establish any corporation, subsidiary corporation, corporate body or any form of partnership or any other separate entity, without the express approval and authorization of the general assembly.

 (b) As used in this section, "subsidiary public corporation" means a corporation created pursuant to the provisions of this section. The person or persons directed by the resolution referred to in subsection (a) shall prepare articles of incorporation setting forth: (1) the name of the subsidiary public corporation; (2) the period of duration, which may be perpetual; (3) the purpose or purposes for which the subsidiary public corporation is organized which shall not be more extensive than the purposes of the corporation set forth in section 42-64-5; (4) the number of directors (which may, but need not be, more than one) constituting the initial board of directors and their names and business or residence addresses; (5) the name and business or residence address of the person preparing the articles of incorporation; (6) the date when corporate existence shall begin (which shall not be earlier than the filing of the articles of incorporation with the secretary of state as provided in this subsection); (7) any provision, not inconsistent with law, which the board of directors elect to set forth in the articles of incorporation for the regulation of the internal affairs of the subsidiary public corporation; and (8) a reference to the form of authorization and approval by the general assembly and to the resolution of the board of directors authorizing the preparation of the articles of incorporation. Duplicate originals of the articles of incorporation shall be delivered to the secretary of state. If the secretary of state finds that the articles of incorporation conform to the provisions of this subsection, the secretary shall endorse on each of the duplicate originals the word "Filed," and the month, day and year of the filing; file one of the duplicate originals in his or her office; and a certificate of incorporation to which the secretary shall affix the other duplicate original. No filing fees shall be payable upon the filing of articles of incorporation. Upon the issuance of the certificate of incorporation or upon a later date specified in the articles of incorporation, the corporate existence shall begin and the certificate of incorporation shall be conclusive evidence that all conditions precedent required to be performed have been complied with and that the subsidiary public corporation has been duly and validly incorporated under the provisions hereof. The parent corporation may transfer to any subsidiary public corporation any moneys, real, personal, or mixed property or any project in order to carry out the purposes of this chapter. Each subsidiary public corporation shall have all the powers, privileges, rights, immunities, tax exemptions, and other exemptions of the parent corporation except to the extent that the articles of incorporation of the subsidiary public corporation shall contain an express limitation and except that the subsidiary public corporation shall not have the condemnation power contained in section 42-64-9, nor shall it have the powers contained in, or otherwise be subject to, the provisions of section 42-64-12 and section 42-64-13(a), nor shall it have the power to create, empower or otherwise establish any corporation, subsidiary corporation, corporate body, any form of partnership, or any other separate entity, without the express approval and authorization of the general assembly.

 (c) Any subsidiary corporation shall not be subject to the provisions of section 42-64-8(a), (c), and (d), except as otherwise provided in the articles of incorporation of the subsidiary corporation.

 (d) The corporation, as the parent corporation of the Rhode Island Airport Corporation, shall not be liable for the debts or obligations or for any actions or inactions of the Rhode Island Airport Corporation, unless the corporation expressly agrees otherwise in writing.

(e)  The parent corporation is hereby authorized and empowered to create a subsidiary corporation for the expressed purpose to issue bonds and notes of the type and for those projects and purposes specified in the Joint Resolution and Act of the General Assembly adopted by the Rhode Island House of Representatives and the Rhode Island Senate.

and be it further

RESOLVED, That any GARVEE Bonds or notes or other bonds or notes issued pursuant to this Joint Resolution and Act shall not constitute “state debt” within the meaning of Article 6, Section 16 of the Rhode Island Constitution and shall be the obligations of only the issuer of such obligations; and be it further

RESOLVED, That this Joint Resolution and Act shall take effect immediately upon its passage  by the General Assembly.

ARTICLE 37

RELATING TO A TAX STUDY COMMISSION AND AN EDUCATION FUNDING STUDY COMMISSION

SECTION 1.  There is hereby created the Rhode Island Tax Study Commission and the Rhode Island Education Funding Study Commission.  The purpose of these commissions shall be to provide the General Assembly with a comprehensive review of the state’s present tax structure and method of funding education.

The Tax Study Commission shall be responsible for an examination, review, analysis, and evaluation of Title 44 of the Rhode Island General Laws.  The commission shall determine whether the present tax structure can or should be fairer, more competitive with neighboring states, administratively less cumbersome, less reliant on the property tax, and more responsive to economic growth.

The Education Funding Study Commission shall be responsible for an examination, review, analysis, and evaluation of statutes pertaining to education funding in Title 16 of the Rhode Island General Laws.  The commission shall consider the programs for which public schools receive funds and the distribution methodology, taking into consideration student needs and local property tax burdens.

Each commission established herein shall consist of ten (10) members of the General Assembly, five (5) of whom shall be appointed by the President of the Senate, including at least  one (1) member from the minority party, and five (5) of whom shall be appointed by the Speaker of the House, including at least one (1) member of the minority party.  The chairperson of the Joint Committee on Legislative Services shall call the members to the first meeting of each commission, at which the members of each commission shall elect two (2) co-chairpersons who shall be responsible for conducting all meetings, hearings, and work sessions.  The commissions may request and receive testimony, data, evidence, or other information relative to the purpose of the study from any individual, group, department, board, agency, or other interested parties.  Each commission shall receive from any department, division, board, bureau, commission, or agency of this state, or of any of its political subdivisions, any assistance, records and/or data that either commission deems necessary.  Each commission shall issue a final report, together with any recommendations for changes to Title 44 or to Title 16, to the President of the Senate, the Speaker of the House, the Chairperson of the Senate Finance Committee, the Chairperson of the House Finance Committee, the Senate Fiscal Advisor, and the House Fiscal Advisor, on or before March 15, 2004.

SECTION 2. This article shall take effect as of July 1, 2003.

 

 

 

ARTICLE 38

Relating To State Aid -- A statewide Study of Tax Treaties and Exemptions

SECTION 1. It is the finding of the General Assembly that application of section 45-13-13 of the General Laws may result in unfair disadvantage among the communities relative to the application of payments in lieu of property taxes and similar tax agreement vehicles. To address this matter, the Office of Municipal Affairs in the Department of Administration is authorized to and shall undertake an inventory or property tax treaties, payments in lieu of taxes, agreements reached through public law, and other similar mechanisms for reducing property taxes among the cities and towns, including the legal basis for the granting of these treaties and exemptions by the municipalities. The various cities and towns are hereby requested to provide what assistance is necessary to the Office of Municipal Affairs in executing this responsibility. 

The Office of Municipal Affairs is further authorized to review and analyze this material and to make a report and recommendations to the General Assembly by November 15, 2003, with copies to the President of the Senate, Speaker of the House, the Chairperson of the Senate Finance Committee, the Chairperson of the House Finance Committee, the Senate Fiscal Advisor and the House Fiscal Advisor.

It is intention of the legislature that procedures and methodologies utilized for tax treaties, payment in lieu of taxes, tax agreements and other property tax stabilization vehicles employed by the various cities and towns be treated in the same manner with regard to determination of value relative to tax rolls and the use of this information for determining state aid, including education state aid to said communities. Payments in lieu of taxes covered under section 45-13-5.1 of the General Laws need not be reviewed.

SECTION 2. This article shall take effect on July 1, 2003.

 

 

ARTICLE 39

RELATING TO STATE AFFAIRS AND GOVERNMENT

SECTION 1. Chapter 42-9 of the General Laws entitled  "Department of Attorney General" is hereby amended by adding thereto the following section:

42-9-19. Acceptance of settlements -- Attorney General settlement restricted account. – (a) The attorney general is hereby authorized and empowered to accept in the name of the state any settlement resulting from a multi-state initiative. Such settlement proceeds shall be transferred to the general treasurer for deposit in the general fund. The general treasurer shall transfer ten percent (10%) of such proceeds, up to sixty-five thousand dollars ($65,000) in any fiscal year, to the “attorney general multi-state initiative account.”  The restricted account shall be used  solely to pay for any fees or membership dues associated with multi-state initiatives.

SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds" is hereby amended to read as follows:

35-4-27. Indirect cost recoveries on restricted receipt accounts. -- Indirect cost recoveries of seven percent (7%) of cash receipts shall be transferred from all restricted receipt accounts, to be recorded as general revenues in the general fund. However, there shall be no transfer from cash receipts with restrictions received exclusively from contributions from non-profit charitable organizations. These indirect cost recoveries shall be applied to all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The following restricted receipt accounts shall not be subject to the provisions of this section:

ACCOUNT                                                      PROGRAM

1052-8030                                             Ladd school - Patients' benefit

1065-80300                                           IMH - Patients' benefit

1072-80200                                           General hospital - Patients' benefit

1074-80300                                           Zambarano - Patients' benefit

1101-80601                                           Indirect cost recovery

1143-80100                                           Forfeited property - Drug control

1210-80102                                           Indirect cost recoveries

1210-80103                                           Indirect cost recoveries

1210-80105                                           Indirect cost recoveries

1210-80106                                           Indirect cost recoveries

1235-80100                                           Veterans' home - Restricted account

1235-80300                                           Veterans' home - Resident benefits

1260-80100                                           Organ transplant fund

1370-80100                                           Custody of U.S. detainees

1370-80300                                           ACI - Inmate benefits

1410-80100                                           Recovery of indirect costs

1725-80100                                           National heritage revolving fund

1725-80300                                           Blackstone River bicycle study

1732-80800                                           Non-game wildlife fund (G.L. 20-18)

1736-80600                                           Galilee Port improvement

1751-81000                                           RIDOT permits program

1753-80200                                           UST loan fund

1754-80200                                           Environmental response fund Ii

1754-80700                                           RIDOT Quonset cleanup

1759-80100                                           Underground storage tanks

1912-80200                                           R.I.P.T.A.

1932-80200                                           Gasoline tax/debt service*

2024-80400                                           Asset forfeiture fund

2024-81200                                           Indirect cost recovery – SA

2061-80400                                           Art for public facilities fund

2062-80500                                           Historic preservation revolving loan fund

2062-80600                                           Hp rev. loan fund - Interest revenue

2211-80100                                           Forfeiture of property

2211-80600                                           Federal forfeitures

2441-80100                                           COBRA

2450-80200                                           DEPCO escrow account

2473-80100                                           Public service corp. tax - Admin. expen.

2480-80400                                           Restore and replacement - Insurance coverage

2480-80800                                           Convention center authority rental payments

2570-80100                                           Forfeited property - Retained

2570-80200                                           Seized & forfeited prop. - Fed. distrbd.

2570-80400                                           Forfeited property - Gambling

2626-80100                                           Audit of federal assisted programs

2816-80100                                           Arts and tourism development fund

2920-80300                                           Debt service on borrowed funds

3260-81500                                           Intermodal surface transportation fund

2230-82600                                           Attorney General multi-state initiative account

SECTION 3. This article shall take effect upon passage.

ARTICLE 40

RELATING TO PUBLIC UTILITIES AND CARRIERS

SECTION 1. Chapter 39-1 of the General Laws entitled  "Public Utilities Commission" is hereby amended by adding thereto the following section:

39-1-61. Rhode Island telecommunications education access fund. – (a) Preamble. For the past ten (10) years, the schools and libraries of Rhode Island have benefited from a regulatory agreement with Verizon and its predecessor companies that has provided up to two million dollars ($2,000,000) annually for support of telecommunications lines for internet access. In addition, the funds provided for in the original regulatory agreement and every dollar generated hereunder leverages a one dollar and twenty-seven cents ($1.27) federal E-Rate match. With the regulatory agreement approaching its termination and the advent of more advanced technologies, it is the intent of this section to provide a continued source of funding for internet access for eligible public and private schools and libraries.

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

(1) “Department of Education” means the Rhode Island Department of Elementary and Secondary Education.

(2) “Commission” means the Public Utilities Commission.

(3) “Telecommunications Education Access Fund” means the programs and funding made available to qualified libraries and schools to assist in paying the costs of acquiring, installing and using telecommunications technologies to access the internet.

(c) Purpose. The purpose of the Telecommunications Education Access Fund shall be to fund a basic level of internet connectivity for all of the qualified schools (kindergarten through grade 12) and libraries in the state.

(d) Authority. The commission shall establish, by rule or regulation, an appropriate funding mechanism to recover from the general body of ratepayers the costs of providing telecommunications technology to access the internet.

(1) The general assembly shall determine the amount of a monthly surcharge to be levied upon each residence and business telephone access line or trunk in the state, including PBX trunks and centrex equivalent trunks and each service line or trunk, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network. The department will provide the general assembly with information and recommendations regarding the necessary level of funding to effectuate the purposes of this article.  The General Assembly shall annually review the surcharge to determine if it should be applied to wireless telephone service.  The surcharge shall be billed by each telecommunications services provider and shall be payable to the telecommunications services provider by the subscriber of the telecommunications services. State, local and quasi-governmental agencies shall be exempt from the surcharge. The surcharge shall be deposited in a restricted receipt account, hereby created within the commission and known as the Telecommunications Education Access Fund, to pay any and all costs associated with subsection (b)(3). The amount of the surcharge shall not exceed thirty-five cents ($.35) per access line or trunk.

(2) The surcharge is hereby determined to be twenty-six cents ($.26) per access line or trunk.

(3) The amount of the surcharge shall not be subject to the sales and use tax imposed under general laws chapter 44-18 nor be included within the gross earnings of the telecommunications corporation providing telecommunications service for the purpose of computing the tax under general laws chapter 44-13.

(e) Administration. The commission, with input from the department, shall administer the Telecommunications Education Access Fund consistent with the requirements of the Universal Service (E-Rate) program. The commission shall collect from the telecommunications service providers the amounts of the surcharge collected from their subscribers. The department, with the approval of the commission, shall publish requests for proposals that do not favor any particular technology, evaluate competitive bids, and select products and services that best serve the internet access needs of schools and libraries. In doing so, the department shall endeavor to obtain all available E-Rate matching funds. The department is further authorized and encouraged to seek matching funds from all local, state, and federal public or private entities. The department shall approve dispersement of funds under this section in accordance with the commission’s directives. Unsuccessful bids may be appealed to the commission. The commission shall annually review the department’s disbursements from this account to ensure that the department’s decisions do not favor any competitor.

(f) Eligibility. All schools seeking support from the fund must be eligible for Universal Service (E-Rate) support and meet the definition of “elementary school” or “secondary school” in the Elementary and Secondary Education Act of 1965, as amended (20 U.S.C. section 8801). Schools operating as a for-profit business or with endowments exceeding fifty million dollars ($50,000,000) are not eligible for support. All libraries seeking support from the fund must meet the definition of “library” or “library consortium” in the Library Services and Technology Act, Public Law No. 104-208, section 211 et seq., 110 Stat. 3009 (1996) and must be eligible for assistance from a state library administrative agency under that act. Only libraries that have budgets that are completely separate from any schools (including, but not limited to, elementary and secondary, colleges and universities) shall be eligible to receive support. Libraries operating as a for-profit business shall not be eligible for support.

(g) The effective date of assessment for the Telecommunications Education Access Fund shall be January 1, 2004.

SECTION 2. This article shall take effect upon passage.

 

ARTICLE 41

Relating To Medical Assistance

SECTION 1. Section 40-8-19 of the General Laws in Chapter 40-8 entitled "Medical Assistance" is hereby amended to read as follows:

40-8-19. Rates of payment to nursing facilities. -- (a) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of title 23, and certified to participate in the title XIX medicaid program for services rendered to medicaid-eligible residents, shall be reasonable and adequate to meet the costs which must be incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. section 1396a(a)(13). The department of human services shall promulgate or modify the principles of reimbursement for nursing facilities currently in effect on July 1, 2003 to be consistent with the provisions of this section and title XIX, 42 U.S.C. section 1396 et seq., of the Social Security Act.

 (b) For the period ending January 1, 1991 through June 30, 1993, the rates paid by the Rhode Island medical assistance program for services provided to program beneficiaries in nursing facilities licensed pursuant to chapter 17 of title 23, shall have been based on the costs calculated in accordance with facility base years established under the Principles of Reimbursement, TN No. 92-17, adjusted by the percentage change in the national nursing home input price index granted on January 1 of each year subsequent to such base years, except that no such adjustment shall be made on January 1, 1994 and that facilities commencing operation (including total replacement facilities) subsequent to calendar year 1991 shall have had their first six (6) months of operation as their base period.

 (1) Effective July 1, 1993, allowable costs shall be divided into the following seven (7) cost centers:

 (i) Fixed property, which will include real estate, personal property, and fire district taxes;

 (ii) Other property related, which will include interest, rent/lease, amortization of leasehold improvements, and depreciation;

 (iii) Management related, which will include all salaries and personnel fees for administrators, managers, officers/owners, other administrative salaries, employer's share of health benefits for such personnel, other fringe benefits for such personnel, home office/central services, computer payroll and data processing charges, accounting/auditing fees, legal services, payroll taxes for such personnel, workers' compensation, group life, pension and retirement insurance for such personnel, utilization review, consultants, pharmacist salaries and services, and other salaries and fees exclusive of salaries and purchased services enumerated in the labor related cost center and of repairs; medical director salaries/fees; physician salaries/fees; salaries;

 (iv) Energy, which will include fuel, gas, and electricity;

 (v) OBRA 87, which will include reasonable costs of the following expense elements: medical director; physician salaries/fees, social worker salaries/fees; recreational activities salaries; quality of life; scope of services and activities under plan of care; resident assessment; provisions of services and activities; in-service education/training; physician supervision and clinical records; social services; general rights; transfer and discharge rights; access and visitation rights; equal access to quality care; admission policy; protection of resident funds; posting of survey results; administration; licensing and life safety code; and sanitary and infection control and physical environment;

 (vi) Labor related, which will include all salaries and personnel costs for nonadministrative and nonmangement employees including the employee's share of health benefits, other employee fringe benefits, payroll taxes, workers' compensation, group life, pension, and retirement insurance for those employees. This classification shall include employee costs and/or purchased service costs for the following categories: dietary, laundry and linen, housekeeping, RN's, LPN's, aides and orderlies, physical therapy, and other therapeutic services, recreational activities, social workers, and plant operation and maintenance; and

 (vii) All other, which includes all other allowable costs not specifically covered by subsections (a) -- (f).

 (2) For the fiscal year ending June 30, 1994, and each succeeding fiscal year, per diem maximum allowable costs for each cost center applicable during such fiscal year shall be as follows:

 (i) For fixed property and OBRA 87, the maximum shall be equal to the cost at the one hundredth (100th) percentile of all continuously operating facilities arrayed in each cost center for calendar year 1991;

 (ii) For labor related and all other, the maximum shall be equal to the cost at the eightieth (80th) percentile of all continuously operating facilities arrayed in each cost center for calendar year 1991;

 (iii) For the energy and management related cost center, the maximum shall be equal to the cost at the seventy-fifth (75th) percentile of all continuously operating facilities arrayed in the cost center for calendar year 1991; provided, however, that for the fiscal year ending June 30, 1997, and each succeeding fiscal year, the per diem maximum allowable costs for the management related cost center shall be equal to the cost at the eightieth (80th) percentile of all continuously operating facilities arrayed in each cost center for calendar year 1991, such cost center ceiling to be adjusted by the national nursing home price index percentage increase granted on January 1, 1992 and January 1, 1993, and on an annual basis, commencing with the fiscal year beginning July 1, 1994 and each fiscal year thereafter to be adjusted on an annual basis consistent with the provisions of subdivision (3);

 (iv) For the other property related cost center, the maximum allowable cost will be set at the rate of eighteen dollars and ninety-seven cents ($18.97), for facilities licensed, under construction or that have made a significant financial commitment by July 1, 1993, or that will have submitted certificate of need applications by June 1, 1993 that will have been approved by September 30, 1993, and for future renovations to the existing bed supply; provided, however, that the reimbursement for depreciation and interest costs attributable to any future additions of bed capacity that exceed the lesser of ten (10) beds or ten percent (10%) of bed capacity or to construction of new facilities will be limited to a maximum equal to the cost at the seventieth (70th) percentile of all continuously operating facilities arrayed in the cost center for calendar year 1991. For those facilities to which the eighteen dollars and ninety-seven cents ($18.97) other property related maximum applies, the cost basis set forth in the principles of Reimbursement TN92-17 and a fifteen dollar ($15.00) maximum shall apply upon change of owner/operator to the new purchaser and/or operator of the facility. All costs, including salaries, must be absorbed within these group ceilings, except that the director may promulgate principles of reimbursement that permit increases in administrator salaries that may be accommodated within the combined cost center ceilings for the labor related and management cost centers. The total ceiling maximum will be the sum total of the seven (7) cost center ceilings.

 (v) Notwithstanding any other provision to the contrary, for the fiscal year ending June 30, 2000, and each succeeding fiscal year, the other property related cost center for nursing facilities meeting each of the criteria below shall be subject to the maximum allowable rate of eighteen dollars and ninety-seven cents ($18.97):

 (A) The facility must be certified to participate in Medicaid and in continuous operation and under the same ownership for reimbursement purposes since July 1, 1967; and

 (B) Costs for renovating the existing facility to modernize and to comply with fire safety codes make the costs of renovation fiscally unsound;

 (C) If fewer replacement beds are constructed than are licensed in the existing facility, the license for the excess beds must be surrendered to the department of health;

 (D) The certificate of need for the replacement beds must be granted no later than January 1, 2001;

 (E) The existing facility must cease operations at the time the replacement beds are licensed; and

 (F) Recapture of depreciation will be paid to the state upon the sale of the existing facility.

 (3) (i) Notwithstanding any other provision to the contrary, the national nursing home price index percentage increase granted on January 1, 1993 shall cover the period January 1, 1993 through June 30, 1994. Commencing with the fiscal year beginning July 1, 1994 and each fiscal year thereafter, except for the fiscal year beginning July 1, 1996 for which no such price index increase shall be applied, the annual percentage increase shall be applied to all cost center ceilings; and provided further that all cost center ceilings shall be increased by an additional nine-tenths of one percent (.9%) effective on July 1, 1999. Individual cost center rates will be adjusted by the percentage change in the national nursing home price index for the twelve (12) month period ending the previous April; provided, however, that no such price index adjustment shall be applied for the fiscal year beginning July 1, 1996; and provided further that all cost center ceilings shall be increased by an additional nine-tenths of one percent (.9%) effective on July 1, 1999. The annual percentage increase shall not apply to any facility cost center rate being held harmless pursuant to the provisions of subdivision (6).

 (ii) The amount of percentage change to be utilized will be the index as reported by the health care financing administration on the first date it is available in the month of April of each year.

 (4) The base year system established under the Principles of Reimbursement, TN #92-17, promulgated by the department of human services will be continued as follows: Commencing with the reporting year 1991, and with every reporting year thereafter, one-third (1/3) of the participating nursing facilities will have a new base year. The prospective rate of each nursing facility with a new base year will be recalculated after the completion of a desk audit of the BM-64 cost report, and will be effective July 1 of the year subsequent to the year in which the cost report was submitted. The recalculated rate will reflect the actual allowable costs as determined by the audit updated by the national nursing home input price index percentage increase(s) for the year(s) subsequent to the audited year to produce the prospective rate, except that no such price index adjustment shall be applied for the fiscal year beginning July 1, 1996; and provided further that there shall be an additional price index adjustment of nine-tenths of one percent (.9%) effective on July 1, 1999; provided, however, that the new prospective rate shall not exceed the maximum rates established for each cost center ceiling.

 (5) Each nursing facility will report in account No. 470 the expenditure for health care provider assessment. The costs in this line item attributable to program revenue received will be fully recognized for reimbursement. An additional per diem rate will be calculated and added to each nursing facility rate to recognize the reimbursement.

 (6) (i) Effective for the year ending June 30, 1994, and for each fiscal year thereafter, to encourage nursing facilities to accept and serve medicaid patients, all participating providers that had an overall medicaid occupancy for the preceding calendar year (e.g. calendar year 1992 for the fiscal year ending June 30, 1994) of eighty percent (80%) or greater will be allowed a .75 cent ($0.075) participating incentive factor per medicaid patient day, and all participating providers that had an overall medicaid occupancy for the preceding calendar year between fifty percent (50%) or greater but less than eighty percent (80%) will be allowed a .35 cent ($0.035) participating incentive factor. The participating incentive factor shall be subject to the ceiling maximum. With respect to state fiscal year ending June 30, 1999, each nursing facility duly licensed and participating as of June, 1999 shall be paid a one-time supplemental medicaid participating incentive factor of three dollars and twenty-one cents ($3.21) per day for each medicaid patient day in calendar year 1997 as reported on the facility's BM-64 cost report for calendar year 1997.

 (ii) Effective July 1, 1993, each nursing facility shall receive a prospective rate made up of the allowed rates in each of the seven (7) cost centers, the rate attributable to the health care provider assessment, and, subject to the ceiling maximum applicable to the seven (7) cost centers in the aggregate, each nursing facility eligible shall receive the participating incentive factor. Provided; that for the fiscal year ending June 30, 1994, no nursing facility rate shall be adjusted in the energy, labor related, management related, all other, and other property related cost centers below the rate it was receiving or would have received in those cost centers on June 30, 1993, except for those changes resulting from the normal base year cycle audits and appeals; for the fiscal year ending June 30, 1995, no nursing facility's rate shall be adjusted in the energy, labor related, management related, all other, and other property related cost centers below the rate it was receiving or would have received in those cost centers on June 30, 1994, except for changes resulting from the normal base year cycle audits and appeals; for the fiscal year ending June 30, 1996, no nursing facility's rate shall be adjusted in the energy, labor related, management related, all other, and other property related cost centers below the rate it was receiving or would have received in those cost centers on June 30, 1995, except for changes resulting from the normal base year cycle audits and appeals. Provided, however, that for facilities under construction as of June 30, 1993, the reimbursement rate during the period from July 1, 1993 through June 30, 1995 shall be the lower of their actual cost per day during the first six (6) months of operation or the maximums in effect as of June 30, 1993.

 (iii) (A) For the state fiscal year ending June 30, 2002, there shall be added an interim per diem increase equal to three dollars and seventy-one cents ($3.71) per day to each nursing facility's medicaid per diem rate. This increase will be in addition to the July 1, 2001 inflationary increase provided by the principles of reimbursement.

 (B) The interim per diem will add three dollars and seventy-one cents ($3.71) to the labor related expenses cost center per diem, as inflated, and the cost center ceiling as of July 1, 2001.

 (C) The additional interim per diem must have been or must be expended by the nursing facility to increase wages and/or staffing; pay payroll taxes and workers' compensation on such payroll; and, enhance, expand or maintain new and existing fringe benefits. The interim per diem increase shall remain in the facility's rate after June 30, 2002 and until the facility's rate is recalculated after its next base period, to the extent it will have actually been expended by the nursing facility to increase wages and/or staffing; pay payroll taxes and workers' compensation on such payroll and enhance, expand or maintain new and existing fringe benefits prior to July 1, 2002. As defined in this section, any amount of this per diem not expended for these reasons shall be subject to retroactive repayment to the state during the two (2) six (6) month base periods described in this section. In order to determine that the amounts provided in the interim per diem are expended on labor related costs, each participating nursing facility shall submit a six (6) month labor report, on forms provided by the rate setting unit of the department of human services, for the six (6) month periods ending December 31, 2001 and June 30, 2002. The six (6) month report(s) shall be filed no later than ninety (90) days from the date in which the six (6) month period is to be completed.

 (D) In the event it is determined that a facility has not expended the per diem in the manner described above, a retroactive adjustment will be made. The retroactive adjustment will be payable in equal monthly installments over a six (6) month period starting with the month subsequent to the adjustment becoming final. The retrospective adjustment shall be calculated as the excess, if any of: (1) the product of the Medicaid rate in the labor related cost center minus three dollars and seventy-one cents ($3.71) and the total bed days provided in the facility in each six (6) month period; plus the product of the Medicaid bed days provided in the period and three dollars and seventy-one cents ($3.71), over (2) the facility's actual expenditures in the labor related cost center for each six (6) month period. The difference between the retrospective adjustment as so calculated and three dollars and seventy-one cents ($3.71) will remain in the facility's rate after June 30, 2002, until the facility's rate is recalculated after its next base period.

 (E) The provisions of subparagraphs (b)(6)(iii)(A)--(E) are expressly conditioned on, and are subject to, the approval of the U.S. Department of Health and Human Services, Health Care Financing Administration, and any terms and conditions expressed in such approval.

 (7) Every nursing facility that participates in the medical assistance program shall, within ninety (90) days of passage, make application for refinancing of existing long term debt through the Rhode Island economic development corporation to the extent that the final interest rate achievable shall be lower than the nursing facility's existing rate. Notwithstanding the provisions of chapter 64 of title 42 or any other provisions of the general laws to the contrary, the Rhode Island economic development corporation is hereby authorized and empowered to participate in the refinancing of long term debt of nursing facilities as provided in this subsection.

 (8) Every nursing facility that participates in the medical assistance program shall, within ninety (90) days of passage file an appeal with the department of business regulation for workers' compensation rate relief on the basis of worker classification revisions.

 (9) If a facility fails to file such an appeal with the department of business regulation for workers' compensation rate relief, the reimbursement rate in the labor and payroll related cost center will be reduced by an amount equal to the medicaid proportion of the cost that would have been saved had the facility filed and been successful in such appeal.

 (10) All of the medicaid proportion of reductions of costs from refinancings and worker compensation savings achieved through the cooperative efforts of the department and individual facilities, including rebates for prior years workers' compensation costs, will be paid in their entirety to the state forthwith after such savings are realized by the facility.

 (11) Rates determined under this section shall be in compliance with all applicable federal laws and regulations and any necessary Title XIX and state plan approval.

 (12) It is the intent of this chapter that quality health care be delivered with full recognition of the need for cost containment. To the extent the state identifies any indication of violations of the cost containment philosophy inherent herein, it may disallow the costs involved subject to the right of the affected nursing facility to appeal such disallowance in a hearing before an adjudicative hearing officer of the Rhode Island department of human services. The appeal shall be conducted in accordance with chapter 35 of title 42. Costs of such appeals will be borne by the appellants. In such proceedings, the burden of proof shall be on the nursing facility to rebut the state's finding by clear and convincing evidence.

(b) Rate reform. Subject to the phase-in provisions in subsections (c) and (d) below, the department shall, on or before October 1, 2005, modify the principles of reimbursement for nursing facilities to include the following elements:

(1) annual base years;

(2) four (4) cost centers: direct labor, property, other operating, and pass through items;

(3) re-array of costs of all facilities in the labor and other operating cost centers every three (3) years beginning with calendar year 2002;

(4) a ceiling maximum for allowable costs in the direct labor cost center to be established by the department between one hundred ten percent (110%) and one hundred twenty-five percent (125%) of the median for all facilities for the most recent array year.

(5) a ceiling maximum for allowable costs in the other operating cost center to be established by the department between ninety percent (90%) and one hundred fifteen percent (115%) of the median for all facilities for the most recent array year;

(6) adjustment of costs and ceiling maximums by the increase in the National Nursing Home Price Index (“NNHPI”) for the direct labor cost center and the other operating cost center for year between array years; such adjustments to be applied on October 1st of each year beginning October 1, 2003 for the direct labor cost center and October 1, 2005 for the other operating cost center.

(7) application of a fair rental value system to be developed by the department for calculating allowable reimbursement for the property cost center;

(8) such quality of care and cost containment incentives as may be established by departmental regulations.

(c) Phase I Implementation. – The department shall file a state plan amendment with the U.S. Department of Health and Human Services on or before August 1, 2003 to modify the principles of reimbursement for nursing facilities, to be effective on October 1, 2003, or as soon thereafter as is authorized by an approved state plan amendment, to establish the direct labor cost center and the pass through items cost center utilizing calendar year 2002 cost data, and to apply the ceiling maximums in subsections (b)(4) and (b)(5). Nursing facilities whose allowable 2002 direct labor costs are below the median in the direct labor cost center may make application to the department for a direct labor cost interim payment adjustment equal to twenty-five percent (25%) of the amount such allowable 2002 direct labor costs are below the median in the direct labor cost center, provided that the interim payment adjustment granted by the department on or after October 1, 2003 must be expended by the facility on expenses allowable within the direct labor cost center, and any portion of the interim payment not expended on allowable direct labor cost center expenses shall be subject to retroactive adjustment and recoupment by the department upon the department’s determination of a final direct labor payment adjustment after review of the facility’s actual direct labor expenditures. The final direct labor payment adjustment will be included in the facility’s  October 1, 2004 rate until the facility’s next base year.

(d) Phase II Implementation. – The department shall file a state plan amendment with the U.S. Department of Health and Human Services to modify the principles of reimbursement for nursing facilities, to be effective on July 1, 2004, or as soon thereafter as is authorized by an approved state plan amendment, to establish a fair rental value system for calculating allowable reimbursement for the property cost center in accordance with subsection (b)(7).

SECTION 2. Section 40-8-20 of the General Laws in Chapter 40-8 entitled "Medical Assistance" is hereby repealed.

40-8-20. Appeal requests for rate increments. -- The department may consider the granting of a prospective rate that reflects demonstrated cost increases in excess of the rate that has been established by the application of the percentage increase. In order to qualify for the rate increment, demonstrated increased costs must be the result of:

 (1) Demonstrated errors made during the rate determination process;

 (2) Significant increases in operating costs resulting from the implementation of new or additional programs, services or staff specifically mandated by the Rhode Island department of health;

 (3) Significant increases in operating costs resulting from capital renovations, expansion, or replacement required for compliance with fire safety codes and/or certification requirements of the Rhode Island department of health; or

 (4) Significant increases in workers' compensation and/or health insurance premiums which cannot be accommodated within the nursing facility's assigned aggregate per diem rate, if cost justified; provided, that assigned per diem rate in the labor and payroll related expenses cost center does not exceed two percent (2%) of the cost center ceiling.

 (5) Extraordinary circumstances, including, but not limited to, acts of God, and inordinate increases in energy costs (e.g., federal BTU tax, regional or national energy crisis). Inordinate increases in energy costs will be immediately reflected in increased rates above the energy cost center ceiling maximum. Provided, however, that such increases will be rescinded immediately upon cessation of the extraordinary circumstance. All requests for rate increments shall be limited to one request per nursing facility for the factors set forth in subdivisions (2) and (3). Provided, additional requests involving a per diem increase in excess of one percent (1%) of the nursing facility's previously assigned aggregate per diem rate shall also be reviewed. Before a nursing facility shall be permitted to file for a rate increment, increases in operating costs set forth in subdivisions (2) and (3) must have been incurred for a period of not less than three (3) months in order to establish proof of the increase. Rate adjustments granted as a result of a request filed within one hundred twenty (120) days after the costs were first incurred shall be made effective retroactively to the date the costs were actually incurred. Provided, any adjustments granted as a result of requests filed more than one hundred twenty (120) days after the costs were first incurred will be effective on the first day of the month following the filing of the request.

 

SECTION 3. Section 40-8-21 of the General Laws in Chapter 40-8 entitled "Medical Assistance" is hereby amended effective October 1, 2005, to read as follows:

40-8-21. Appeals process. -- (a) Any provider that is not in agreement, after being provided an exit audit conference or rate appeal conference, with a final rate of reimbursement assigned as a result of an audit for its base year, or with the application of the principles of reimbursement for an applicable year, may within fifteen (15) days from the date of notification of audit results or rate assignment, file a written request with the department for a review of the computation of the assigned rate. The foregoing right of appeal shall also apply to demonstrated errors made during the rate determination process.

 (b) A review conference will be conducted within fifteen (15) days from the date of receipt of the written request by a designee assigned by the director of the department of human services. As a result of the review conference, the designee may modify the audit adjustments and/or the rate of reimbursement. The designee shall provide the facility with a written decision within thirty (30) days from the date of the review conference.

 (c) Appeals beyond the review conference shall be in accordance with the provisions of chapter 35 of title 42. The facility shall file a written request for the hearing no later than fifteen (15) days after receipt of the review conference decision.

SECTION 4. Section 1 shall take effect on July 1, 2003, and sections 2 and 3 shall take effect on October 1, 2005.

 

ARTICLE 42

Relating To Revised Appropriations

SECTION 1.   Section 1 of 03-H 5069 entitled “Revised Appropriations” relating specifically to the appropriations for the Department of Children, Youth and Families, Department of Elderly Affairs, Department of Health, Department of Human Services, Department of Elementary and Secondary Education, Office of the Child Advocate, the Department of Mental Health, Retardation, and Hospitals, the Department of Transportation and the statewide totals are hereby amended as follows:

                                    03 H 5069                     Variance                       03 H 6174

Children, Youth, & Families

            General Revenues         141,539,457                   (1,140,662)                  140,398,795        

Federal Funds               94,324,980                     1,140,662                      95,465,642

Department of Elderly Affairs

            General Revenues         26,848,850                     (14,197)                        26,834,653

            Federal Funds               11,355,808                     14,197                           11,370,005

Other Funds

 Intermodal Surface Trans.

             Fund                            4,700,000                      (30,000)                        4,670,000

Grand Total--

Elderly Affairs  42,904,658                     (30,000)                        42,874,658

 Department of Health

            General Revenues         34,496,898                     (55,716)                        34,441,182

            Federal Funds               63,466,370                     55,716                           63,522,086

Department of Human Services

            General Revenues         616,163,007                   (6,161,256)                   610,001,751

            Federal Funds               811,564,254                   6,161,256                     817,725,510

Department of Elementary and Secondary Education

            General Revenues         743,540,979                   (16,402)                     743,524,577

            Federal Funds               167,260,778                   16,402                         167,277,180

Provided that personnel and other state operations do not exceed $27,666,585

Office of the Child Advocate

            General Revenues         494,552                         (1,822)                          492,730

            Federal Funds               359,190                         1,822                            361,012

Mental Health, Retardation and Hospitals

            General Revenues         221,721,192                   (3,232,647)                218,488,545

            Federal Funds               218,959,401                   3,232,647                  222,192,048

Department of Transportation

Infrastructure – Engineering

            Other Funds

Gasoline Tax                 40,330,485                     (802,500)                   39,527,985

Total-

Infrastructure Eng.        254,793,376                   (802,500)                253,990,876

Grand Total-Trans.        304,988,441                   (802,500)                304,185,941

Statewide Totals

            General Revenues         2,709,655,652                (10,622,702)      2,699,032,950

            Federal Funds               1,718,544,296                10,622,702         1,729,166,998

            Restricted Receipts       119,375,788                   0                         119,375,788

            Other Funds                  971,062,411                   (832,500)              970,229,911

Statewide Grand Total               5,518,638,147                (832,500)            5,517,805,647

            SECTION 2. Section 1 of 03-H 5069 entitled “Revised Appropriations” relating specifically to the appropriations for the Department of Administration is hereby amended as follows:

            Contingency Fund          1,311,529                      0                      1,311,529

Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled “State Budget”, no unexpended and unencumbered balances of the FY 2003 appropriation for the contingency fund in the Office of the Governor shall be reappropriated to FY 2004.

            SECTION 3. This article shall take effect upon passage.

 

ARTICLE 43

Relating To State Budget

SECTION 1. Section 35-3-15 of the General Laws in Chapter 35-3 entitled "State Budget" is hereby amended to read as follows:

35-3-15. Unexpended and unencumbered balances of revenue appropriations. -- (a) All unexpended or unencumbered balances of general revenue appropriations, whether regular or special appropriations, at the end of any fiscal year, shall revert to the surplus account in the general fund, and may be reappropriated by the governor to the ensuing fiscal year and made immediately available for the same purposes as the former appropriations; provided, that the disposition of unexpended or unencumbered appropriations for the general assembly and legislative agencies shall be determined by the joint committee on legislative affairs, and written notification given thereof to the state controller within twenty (20) days after the end of the fiscal year. ; and furthermore that the disposition of unexpended or unencumbered appropriations for the judiciary, shall be determined by the state court administrator, and written notification given thereof to the state controller within twenty (20) days after the end of the fiscal year.

 (b) The governor shall submit a report of such reappropriations to the chairperson of the house finance committee and the chairperson of the senate finance committee of each reappropriation stating the general revenue appropriation, the unexpended or unencumbered balance, the amount reappropriated, and a explanation of the reappropriation and the reason for the reappropriation by August 15 of each year.

SECTION 2. This article shall take effect upon passage.

 

 

ARTICLE 44

Relating to the Rhode Island Veterans’ Home

 

 

SECTION 1. Section 30-24-10 of the General Laws in Chapter 30-24 entitled "Rhode Island Veterans' Home" is hereby amended to read as follows:

30-24-10. Admissible to home -- Fees. -- (a) Any person who has served in the army, navy, marine corps, coast guard, or air force of the United States for a period of ninety (90) days or more and that period began or ended during any foreign war in which the United States shall have been engaged or in any expedition or campaign for which the United States government issues a campaign medal, and who was honorably discharged from it, and who shall be deemed to be in need of care provided at the Rhode Island veterans' home, may be admitted to that facility subject to such rules and regulations as shall be adopted by the director of human services to govern the admission of applicants to the facility. Any person who has served in the armed forces of the United States designated herein and otherwise qualified, who has served less than the ninety-day period described in this section, and who was honorably discharged from service, and who, as a result of the service, acquired a service-connected disability or disease, may be admitted. No person shall be admitted to the facility unless the person has been accredited to the enlistment or induction quota of the state or has resided in the state for at least two (2) consecutive years next prior to the date of the application for admission to the facility.

 (b) (1) The director shall, at the end of each fiscal year, determine the net per diem expenses of maintenance of residents in the facility and shall assess against each resident who has "net income", as defined in this section, a fee equal to ninety percent (90%) of the resident's net income, provided that fee shall not exceed the actual cost of care and maintenance for the resident; and provided that an amount equal to twenty percent (20%) of the maintenance fee assessed shall be allocated to and deposited in the veterans' restricted account. For the purposes of this section, "net income" is defined as gross income minus applicable federal and state taxes and minus:

 (i) An amount equal to one hundred sixteen one hundred fifty dollars ($116) ($150) per month of residency and fifty percent (50%) of any sum received due to wounds incurred under battle conditions for which the resident received the purple heart; and

 (ii) The amount paid by a resident for the support and maintenance of his or her spouse, parent(s), minor child(ren), or child(ren) who is/are blind or permanently and totally disabled as defined in title XVI of the Federal Social Security Act, 42 U.S.C. 1381 -- 1383d, subject to a maximum amount to be determined by rules and regulations as shall be adopted by the director.

 (2) The fees shall be paid monthly to the home and any failure to make payment when due shall be cause for dismissal from the facility. Prior to dismissal, the resident shall be afforded administrative due process.

 (c) Admissions to the veterans' home shall be made without discrimination as to race, color, national origin, religion, sex, disability, assets, or income.

SECTION 2. This article shall take effect upon passage.”

           

ARTICLE 45

Relating to credit cards

 

SECTION 1. Title 35 of the General Laws entitled  "Public Finance" is hereby amended by adding thereto the following chapter:

CHAPTER 21
RECEIPT OF TAXES, FEES, AND OTHER PAYMENTS BY CREDIT CARD

35-21-1. Credit card payments on amounts due state and local governments. - - (a) Notwithstanding any other provision of general law to the contrary, any department or agency as defined in chapter 35-1 herein or other unit of state or local government delineated in this section, which is required or authorized to receive or collect any payments to state government, may be authorized, but not required, to accept credit card payments of such amounts and in such manner as may be prescribed or limited by this chapter. Any such department, agency or other governmental unit receiving approval from the director of the department of administration pursuant to this chapter shall be known as an “authorized department or agency.”

(b) Subject to the provisions of this chapter, the director of the department of administration shall establish procedures, in consultation with the state controller and general treasurer, by which: (i) a department, agency or other governmental unit may be approved as an authorized department or agency; (ii) specific fees, charges, taxes, tuition or other payments to state or local government may be approved for payment by credit card by an authorized department or agency; and (iii) the manner of acceptance of credit card payments is established. Factors which may be considered in making such determinations or establishing such procedures may include, but are not necessarily limited to, improved governmental cash flow, reduction of governmental overhead costs, improved governmental financial security, the benefit of increased public convenience or a combination of one or more of the foregoing.

(c) For purposes of this section, the term “credit card” shall be deemed to include credit cards, charge cards, debit cards, electronic funds transfers or similar means of automatic transmission of funds.

(d) The state controller and general treasurer are jointly authorized to enter into appropriate agreements with credit card issuers, financial institutions or other appropriate parties as needed to facilitate the acceptance of credit card payments pursuant to this chapter. Without limiting the generality of the foregoing, such agreements may provide for the acceptance of credit card payments at a discount from their face amount or the payment or the payment or withholding of administrative fees from the face amount of such payments, provided such payment or discount does not exceed a commercially reasonable percentage of the face amount of such payment as may be determined by the state controller and general treasurer.  Any such agreement shall provide that it may be canceled at any time, but the agreement may include provisions for a reasonable brief period of notice for cancellation.

(e) No person making any payment by credit card shall be relieved from liability for the underlying obligation except to the extent that the state realizes final payment of the underlying obligation in cash or the equivalent. If final payment is not made by the credit  card issuer or other guarantor of payment in the credit card transaction, then the underlying obligation shall survive and the state shall retain all remedies for enforcement which would have applied if the credit card transaction had not occurred. No contract may modify the provisions of this subsection. This subsection, however, shall not make the underlying obligor liable for any discount or administrative fees paid to the credit card issuer or other party by the state, except with child support payments. Credit cards shall only be accepted for child support payments if a means is established to ensure that the full amount of the child support payment made by credit card is received by the recipient and that state revenue is not used to pay any fee charged by the credit card company for the child support payment.

(f) A state officer or employee who accepts a credit card payment in accordance with this section and any applicable procedures, policies, rules, or regulations of the state shall not thereby incur any personal liability for the final collection of such payments.

(g) This section shall be broadly construed to authorize, but not require, acceptance of credit card payments by authorized departments or agencies. The decision as to whether to utilize credit card payments for any particular type of payment may be made by the authorized department or agency, subject to this chapter.

(h) Credit card account numbers in the possession of a state or local government are confidential and shall not be deemed public records.

SECTION 2. Upon approval of the Division of Motor Vehicles pursuant to this chapter, section 31-6-15, of title 31 of the General laws is hereby repealed.   

SECTION 3. This article shall take effect upon passage.

 

                                                                       

ARTICLE 46

Relating To Effective Date

 

This act shall take effect upon passage, except as otherwise provided herein.