Chapter 216

2006 -- H 7285 SUBSTITUTE B

Enacted 07/03/06

 

A N A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

     

     

     Introduced By: Representative Gordon D. Fox

     Date Introduced: February 15, 2006

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 5-37.3-4 of the General Laws in Chapter 5-37.3 entitled

"Confidentiality of Health Care Communications and Information Act" is hereby amended to read

as follows:

 

     5-37.3-4. Limitations on and permitted disclosures. -- (a) (1) Except as provided in

subsection (b) of this section or as specifically provided by the law, a patient's confidential health

care information shall not be released or transferred without the written consent of the patient or

his or her authorized representative, on a consent form meeting the requirements of subsection (d)

of this section. A copy of any notice used pursuant to subsection (d) of this section, and of any

signed consent shall, upon request, be provided to the patient prior to his or her signing a consent

form. Any and all managed care entities and managed care contractors writing policies in the state

shall be prohibited from providing any information related to enrollees which is personal in

nature and could reasonably lead to identification of an individual and is not essential for the

compilation of statistical data related to enrollees, to any international, national, regional, or local

medical information data base. This provision shall not restrict or prohibit the transfer of

information to the department of health to carry out its statutory duties and responsibilities.

      (2) Any person who violates the provisions of this section may be liable for actual and

punitive damages.

      (3) The court may award a reasonable attorney's fee at its discretion to the prevailing

party in any civil action under this section.

      (4) Any person who knowingly and intentionally violates the provisions of this section

shall, upon conviction, be fined not more than five thousand ($5,000) dollars for each violation,

or imprisoned not more than six (6) months for each violation, or both.

      (5) Any contract or agreement which purports to waive the provisions of this section

shall be declared null and void as against public policy.

      (b) No consent for release or transfer of confidential health care information shall be

required in the following situations:

      (1) To a physician, dentist, or other medical personnel who believes, in good faith, that

the information is necessary for diagnosis or treatment of that individual in a medical or dental

emergency;

      (2) To medical and dental peer review boards, or the board of medical licensure and

discipline, or board of examiners in dentistry;

      (3) To qualified personnel for the purpose of conducting scientific research, management

audits, financial audits, program evaluations, actuarial, insurance underwriting, or similar studies;

provided, that personnel shall not identify, directly or indirectly, any individual patient in any

report of that research, audit, or evaluation, or otherwise disclose patient identities in any manner;

      (4) By a health care provider to appropriate law enforcement personnel, or to a person if

the health care provider believes that person or his or her family is in danger from a patient; or to

appropriate law enforcement personnel if the patient has or is attempting to obtain narcotic drugs

from the health care provider illegally; or to appropriate law enforcement personnel or

appropriate child protective agencies if the patient is a minor child who the health care provider

believes, after providing health care services to the patient, to have been physically or

psychologically abused; or to law enforcement personnel in the case of a gunshot wound

reportable under section 11-47-48;

      (5) Between or among qualified personnel and health care providers within the health

care system for purposes of coordination of health care services given to the patient and for

purposes of education and training within the same health care facility; or

      (6) To third party health insurers including to utilization review agents as provided by

section 23-17.12-9(16)(c)(4), third party administrators licensed pursuant to chapter 20.7 of title

27 and other entities that provide operational support to adjudicate health insurance claims or

administer health benefits;

      (7) To a malpractice insurance carrier or lawyer if the health care provider has reason to

anticipate a medical liability action; or

      (8) (i) To the health care provider's own lawyer or medical liability insurance carrier if

the patient whose information is at issue brings a medical liability action against a health care

provider.

      (ii) Disclosure by a health care provider of a patient's health care information which is

relevant to a civil action brought by the patient against any person or persons other than that

health care provider may occur only under the discovery methods provided by the applicable

rules of civil procedure (federal or state). This disclosure shall not be through ex parte contacts

and not through informal ex parte contacts with the provider by persons other than the patient or

his or her legal representative. Nothing in this section shall limit the right of a patient or his or her

attorney to consult with that patient's own physician and to obtain that patient's own health care

information;

      (9) To public health authorities in order to carry out their functions as described in this

title and titles 21 and 23, and rules promulgated under those titles. These functions include, but

are not restricted to, investigations into the causes of disease, the control of public health hazards,

enforcement of sanitary laws, investigation of reportable diseases, certification and licensure of

health professionals and facilities, review of health care such as that required by the federal

government and other governmental agencies;

      (10) To the state medical examiner in the event of a fatality that comes under his or her

jurisdiction;

      (11) In relation to information that is directly related to current claim for workers'

compensation benefits or to any proceeding before the workers' compensation commission or

before any court proceeding relating to workers' compensation;

      (12) To the attorneys for a health care provider whenever that provider considers that

release of information to be necessary in order to receive adequate legal representation;

      (13) By a health care provider to appropriate school authorities of disease, health

screening and/or immunization information required by the school; or when a school age child

transfers from one school or school district to another school or school district;

      (14) To a law enforcement authority to protect the legal interest of an insurance

institution, agent, or insurance-support organization in preventing and prosecuting the

perpetration of fraud upon them;

      (15) To a grand jury or to a court of competent jurisdiction pursuant to a subpoena or

subpoena duces tecum when that information is required for the investigation or prosecution of

criminal wrongdoing by a health care provider relating to his or her or its provisions of health

care services and that information is unavailable from any other source; provided, that any

information so obtained is not admissible in any criminal proceeding against the patient to whom

that information pertains;

      (16) To the state board of elections pursuant to a subpoena or subpoena duces tecum

when that information is required to determine the eligibility of a person to vote by mail ballot

and/or the legitimacy of a certification by a physician attesting to a voter's illness or disability;

      (17) To certify, pursuant to chapter 20 of title 17, the nature and permanency of a

person's illness or disability, the date when that person was last examined and that it would be an

undue hardship for the person to vote at the polls so that the person may obtain a mail ballot;

      (18) To the central cancer registry;

      (19) To the Medicaid fraud control unit of the attorney general's office for the

investigation or prosecution of criminal or civil wrongdoing by a health care provider relating to

his or her or its provision of health care services to then Medicaid eligible recipients or patients,

residents, or former patients or residents of long term residential care facilities; provided, that any

information obtained shall not be admissible in any criminal proceeding against the patient to

whom that information pertains;

      (20) To the state department of children, youth, and families pertaining to the disclosure

of health care records of children in the custody of the department;

      (21) To the foster parent or parents pertaining to the disclosure of health care records of

children in the custody of the foster parent or parents; provided, that the foster parent or parents

receive appropriate training and have ongoing availability of supervisory assistance in the use of

sensitive information that may be the source of distress to these children;

      (22) A hospital may release the fact of a patient's admission and a general description of

a patient's condition to persons representing themselves as relatives or friends of the patient or as

a representative of the news media. The access to confidential health care information to persons

in accredited educational programs under appropriate provider supervision shall not be deemed

subject to release or transfer of that information under subsection (a) of this section; or

      (23) To the workers' compensation fraud prevention unit for purposes of investigation

under sections 42-16.1-12 -- 42-16.1-16. The release or transfer of confidential health care

information under any of the above exceptions is not the basis for any legal liability, civil or

criminal, nor considered a violation of this chapter; or

      (24) To a probate court of competent jurisdiction, petitioner, respondent, and/or their

attorneys, when the information is contained within a decision-making assessment tool which

conforms to the provisions of section 33-15-47.

      (c) Third parties receiving and retaining a patient's confidential health care information

must establish at least the following security procedures:

      (1) Limit authorized access to personally identifiable confidential health care

information to persons having a "need to know" that information; additional employees or agents

may have access to that information which does not contain information from which an individual

can be identified;

      (2) Identify an individual or individuals who have responsibility for maintaining security

procedures for confidential health care information;

      (3) Provide a written statement to each employee or agent as to the necessity of

maintaining the security and confidentiality of confidential health care information, and of the

penalties provided for in this chapter for the unauthorized release, use, or disclosure of this

information. The receipt of that statement shall be acknowledged by the employee or agent, who

signs and returns the statement to his or her employer or principal, who retains the signed

original. The employee or agent shall be furnished with a copy of the signed statement;

      (4) Take no disciplinary or punitive action against any employee or agent solely for

bringing evidence of violation of this chapter to the attention of any person.

      (d) Consent forms for the release or transfer of confidential health care information shall

contain, or in the course of an application or claim for insurance be accompanied by a notice

containing, the following information in a clear and conspicuous manner:

      (1) A statement of the need for and proposed uses of that information;

      (2) A statement that all information is to be released or clearly indicating the extent of

the information to be released; and

      (3) A statement that the consent for release or transfer of information may be withdrawn

at any future time and is subject to revocation, except where an authorization is executed in

connection with an application for a life or health insurance policy in which case the

authorization expires two (2) years from the issue date of the insurance policy, and when signed

in connection with a claim for benefits under any insurance policy the authorization shall be valid

during the pendency of that claim. Any revocation shall be transmitted in writing.

      (e) Except as specifically provided by law, an individual's confidential health care

information shall not be given, sold, transferred, or in any way relayed to any other person not

specified in the consent form or notice meeting the requirements of subsection (d) of this section

without first obtaining the individual's additional written consent on a form stating the need for

the proposed new use of this information or the need for its transfer to another person.

      (f) Nothing contained in this chapter shall be construed to limit the permitted disclosure

of confidential health care information and communications described in subsection (b) of this

section.

 

     SECTION 2. Section 5-37.4-2 of the General Laws in Chapter 5-37.4 entitled "Intractable

Pain Treatment" is hereby amended to read as follows:

 

     5-37.4-2. Definitions. -- For purposes of this chapter:

      (1) "Director" means the director of the department of health of the state of Rhode

Island.

      (2) "Intractable pain" means a pain state that persists beyond the usual course of an acute

disease or healing of an injury or results from a chronic disease or condition that causes

continuous or intermittent pain over a period of months or years.

      (3) "Practitioner" means health care professionals licensed to distribute, dispense, or

administer controlled substances in the course of professional practice as defined in section 21-

28-1.02(36)(37).

      (4) "Therapeutic purpose" means the use of controlled substances for the treatment of

pain in appropriate doses as indicated by the patient's medical record. Any other use is

nontherapeutic.

 

     SECTION 3. Section 19-10.1-1 of the General Laws in Chapter 19-10.1 entitled

"Conversion of Financial Institution to General Business Corporation" is hereby amended to read

as follows:

 

     19-10.1-1. Power to convert financial institution with capital stock to a general

business corporation or other entity. -- Any financial institution with capital stock chartered

under the laws of this state and that is solvent may, upon notice to the director or the director's

designee pursuant to section 19-10.1-2 and subject to the approval of the director or the director's

designee, convert to and become a general business corporation organized under the Rhode Island

Business Corporation Act, Chapter 1.1 1.2 of Title 7, or another financial services entity chartered

under the laws of the United States. As a condition of such conversion, such financial institution

shall amend its agreement to form a financial institution, and where applicable for financial

institutions organized before December 31, 1995, the articles of incorporation or the agreement of

association of the financial institution, such amendment to be by a vote of its stockholders owning

two-thirds (2/3) of its capital stock. For the purpose of closing out any depository or other

exclusively financial institution related business activities authorized pursuant to section 19-3-1,

the directors or trustees of the financial institution shall submit to the director or the director's

designee for approval either: (a) a plan, satisfactory in form and content to the director or the

director's designee, for termination of any remaining depository or other transactions entered into

under or pursuant to the powers, rights or activities reserved to financial institutions under section

19-3-1 and to which such entity remains to be a party; or (b) a certification, satisfactory in form

and content to the director or the director's designee, to the effect that all such depository and

other banking related transactions have been terminated for at least one (1) year. The director or

the director's designee shall, upon timely completion of its review and approval of the plan or

certification, issue an approval and consent for the conversion. The conversion shall not require

the prior liquidation of the subject entity. The corporate existence of such entity shall not

terminate and such entity shall be deemed to be a continuation of the previously existing financial

institution, absent any powers of deposit taking or other powers exclusively reserved to financial

institutions under section 19-3-1. Upon issuance of the approval by the director or the director's

designee for such conversion, the secretary of state shall be so notified and the agreement to form,

or for financial institutions organized before December 31, 1995, the articles of incorporation or

the agreement of association, of the financial institution shall be amended by filing an amendment

with the Secretary of State so as to change the name of the entity to one containing words other

than those identified with a financial institution and to otherwise conform its articles of

incorporation or agreement of association with the requirements of a business corporation

organized under the Rhode Island Business Corporation Act, Chapter 1.1 1.2 of Title 7.

 

     SECTION 4. Section 21-27-10 of the General Laws in Chapter 21-27 entitled "Sanitation

in Food Establishments" is hereby amended to read as follows:

 

     21-27-10. Registration of food businesses. -- (a) No person shall operate a food business

as defined in section 21-27-1(7)(8) unless he or she annually registers the business with the state

director of health; provided, that food businesses conducted by nonprofit organizations, hospitals,

public institutions, farmers markets, roadside farmstands, or any municipality shall be exempt

from payment of any required fee.

     (b) In order to set the registration renewal dates so that all activities for each

establishment can be combined on one registration instead of on several registrations, the

registration renewal date shall be set by the department of health. The registration period shall be

for twelve (12) months commencing on the registration renewal date, and the registration fee

shall be at the full annual rate regardless of the date of application or the date of issuance of

registration. If the registration renewal date is changed, the department may make an adjustment

to the fees of registered establishments, not to exceed the annual registration fee, in order to

implement the changes in registration renewal date. Registrations issued under this chapter may

be suspended or revoked for cause. Any registration or license shall be posted in a place

accessible and prominently visible to an agent of the director.

     (c) Registration with the director of health shall be based upon satisfactory compliance

with all laws and regulations of the director applicable to the food business for which registration

is required.

     (d) The director of health is authorized to adopt regulations necessary for the

implementation of this chapter.

     (e) Classification and fees for registration shall be as follows:

     (1) Food processors (Wholesale) ................................. $210.00

     (2) Food processors (Retail) ...................................... 90.00

     (3) Food service establishments:

     (i) 50 seats or less ........................................... 120.00

     (ii) More than 50 seats ........................................ 180.00

     (iii) Mobile food service units ................................. 72.00

     (iv) Industrial caterer or food

     vending machine commissary ........................................ 210.00

     (v) Vending machine sites or location:

     (A) Three (3) or less machines ................................. 36.00

     (B) Four (4) to ten (10) machines .............................. 72.00

     (C) Eleven (11) or more machines ............................... 90.00

     (4) Retail markets:

     (i) 1 to 2 cash registers ....................................... 90.00

     (ii) 3 to 5 cash registers ..................................... 180.00

     (iii) 6 or more cash registers ................................. 390.00

     (5) Retail food peddler (meat, seafood, dairy,

     and frozen dessert products) ................................ 72.00

     (6) Food warehouses ............................................. 144.00

     (f) In no instance where an individual food business has more than one activity eligible

under this chapter for state registration within a single location shall the business be required to

pay more than a single fee for the one highest classified activity listed in subsection (e) of this

section; provided, that where several separate but identically classified activities are located

within the same building and under the management and jurisdiction of one person, one fee shall

be required. In each of the instances in this subsection, each activity shall be separately registered.

 

     SECTION 5. Section 24-8-42 of the General Laws in Chapter 24-8 entitled "Construction

and Maintenance of State Roads" is hereby amended to read as follows:

 

     24-8-42. Emergency management -- Lane clearance. -- (a) Whenever any public safety

agency through the legitimate exercise of its police powers determines that an emergency is

caused by the immobilization of any vehicle(s) on the interstate system or limited access

highway, as defined in section 31-1-23(c)(e), resulting in lane blockage and posing a threat to

public safety, public safety agencies and those acting at their direction or request shall have

emergency authority to move the immobilized vehicle(s).

      (b) There shall be no liability incurred by any state or local public safety department or

agents directed by them whether those agents are public safety personnel or not for damages

incurred to the immobilized vehicle(s), its contents or surrounding area caused by the emergency

measures employed through the legitimate exercise of the police powers vested in that agency to

move the vehicle(s) for the purpose of clearing the lane(s) to remove any threat to public safety.

 

     SECTION 6. Sections 28-3-12 and 28-3-20 of the General Laws in Chapter 28-3 entitled

"Employment of Women and Children" are hereby amended to read as follows:

 

     28-3-12. Posting of hours and wage rates. -- Every employer shall post, in one or more

places in his or her establishment where it may be easily seen and read by all employees

employed by him or her, a printed or typewritten notice stating the minimum rates of pay,

including hourly rates, or piece rate or both, as the case may be, which the employees are

receiving for the various types of work performed in the establishment, and the number of hours'

work required of the person on each day of the week, and the hours of commencing and stopping

work. The employment of any minor for a longer time in a period of twenty-four (24) consecutive

hours than so stated shall be deemed a violation of section 28-3-11. The provisions of sections

28-3-11 -- 28-3-1412 shall not be construed to impair any restriction placed upon the employment

of any child by the provisions of chapter 19 of title 16.

 

     28-3-20. Penalty for violations generally. -- Except as otherwise specifically provided,

any person or corporation who: (1) employs a child under sixteen (16) years of age without the

permit required by section 28-3-3, (2) makes a false statement in regard to any part required by

the certificate, (3) violates any of the provisions of sections 28-3-1 -- 28-3-20, or suffers or

permits any child to be employed in violation of their provisions, shall be fined five hundred

dollars ($500) for each offense provided, however, that if a child employed in violation of the

provisions of sections 28-3-1 -- 28-3-3020 is injured or killed in the course of the employment,

then the above fine may be increased to five thousand dollars ($5,000); and, provided further,

however that this section does not apply to that portion of section 28-3-6 which fixes the penalty

for the refusal to show to the inspector any certificate provided for in that section.

 

     SECTION 7. Section 31-3-18 of the General Laws in Chapter 31-3 entitled "Registration

of Vehicles" is hereby amended to read as follows:

 

     31-3-18. Display of plates -- Penalties. -- (a) Registration plates issued for a motor

vehicle other than a motorcycle, trailer, transporter vehicle, in-transit vehicle, or a bailee engaged

in a business as defined in section 31-1-17(a), or other than a motor vehicle owned by a duly

authorized dealer in motor vehicles and which is used in the dealer's business shall be attached

thereto one in the front and the other in the rear. The registration plate issued for a motorcycle,

trailer, bailee, or a dealer's motor vehicle as defined in this subsection shall be attached to the rear

of the vehicle.

      (b) Every registration plate shall at all times be securely fastened in a horizontal position

to the vehicle for which it is issued so as to prevent the plate from swinging at a height of not less

than twelve inches (12") from the ground, measuring from the bottom of the plate; in a place and

position to be clearly visible and shall be maintained free from foreign materials and in a

condition to be clearly legible.

      (c) Penalties. - Any person who shall violate the provisions of this section shall be guilty

of a violation and subject to a fine of not more than fifty dollars ($50.00) seventy-five dollars

($75.00).

      (d) All vehicles registered as passenger, commercial, trailer, motorcycle, suburban, farm,

combination, taxi, radio operator, camper, public, racer tow, jitney, and antique must have

displayed on them the registration plate(s) commonly known as the general issuance "wave

plate". This subsection does not apply to those registrants in possession of an alternative design

plate as described in section 31-3-60 or any other specially authorized plate described in this

chapter.

 

     SECTION 8. Section 31-10.1-4 of the General Laws in Chapter 31-10.1 entitled "Special

License for Motorcycles, Motor Scooters, and Other Motor Driven Cycles" is hereby amended to

read as follows:

 

     31-10.1-4. Required equipment. -- Operators of motorcycles, motor scooters, and

motor-driven cycles shall use eye protection of a type approved by the administrator of the

division of motor vehicles when operating their vehicles on streets and highways. Every

motorcycle, motor scooter, and motor-driven cycle shall be equipped with a rear view mirror.

Any operator under the age of twenty-one (21) shall wear a helmet of a type approved by the

administrator of motor vehicles. In addition, all new operators, regardless of age, shall be

required, for a period of one year from the date of issuance of the first license pursuant to section

31-10.1-1, to wear a helmet of a type approved by said administrator. Any person deemed in

violation of this provision shall be fined fifty dollars ($50.00) sixty dollars ($60.00) which shall

be paid in accordance with the provisions of chapter 41.1 of this title. The administrator of the

division of motor vehicles is authorized to set forth rules and regulations governing the use of

other equipment on those vehicles. All fines collected under this section shall be deposited in a

general restricted receipt account for the use of the Rhode Island governor's office on highway

safety in order to promote educational and informational programs encouraging helmet use.

 

     SECTION 9. Sections 39-1-18, 39-1-57 and 39-1-59 of the General Laws in Chapter 39-1

entitled "Public Utilities Commission" are hereby amended to read as follows:

 

     39-1-18. Hearings and records -- Certified copies. -- (a) All hearings and orders of the

commission and of the division, and the records thereof, shall be public and any person shall be

permitted to record all or any portion of a hearing by way of camera, video or tape recorder of

any kind, unless a party to the hearing requests, and the chairperson or administrator grants the

request, that the recording be prohibited for the protection of attorney-client privilege,

confidentiality or other interest of the parties. All reports, records, files, books, and accounts in

the possession of the commission or the division shall be open to inspection by the public at all

reasonable times. The division may charge and collect reasonable fees for copies of official

documents, orders, papers, and records, and for authenticating or certifying the same; provided

that no fee shall be charged for single copies of official documents, orders, papers, and records,

furnished to public officers of the state for use in their official capacity, or for the annual reports

in the ordinary course of distribution.

      (b) Effective as of September 1, 2003, all All filings made to the division or commission

shall also be provided digitally in a manner established by the division. The commission and

division may adopt rules exempting filings from this requirement.

      (c) In order to support the ability of the public and interested parties to stay informed of

the activities of the commission and the division, and to promote awareness of utility

restructuring, the division shall maintain a site on the internet through which the public may

access:

      (1) Notices of and agendas of hearings;

      (2) All filings that are available in digital format and that are not subject to protective

orders;

      (3) All orders, rules and regulations of the commission or administrator;

      (4) Announcements of, agendas for, and minutes of open meetings;

      (5) A calendar of all forthcoming open meetings and hearings;

      (6) Current tariffs of all public utilities who are subject to assessment pursuant to section

39-1-23; provided, however, that the division may require any public utility with extensive tariffs

to maintain a website and provide access to those tariffs via a link from the division's website;

      (7) A listing of all public utilities and nonregulated power producers, together with

consumer contact information for each;

      (8) Consumer information on billing dispute resolution, retail access, conservation, and

consumer assistance programs;

      (9) Demand side management programs available to residential, commercial and

industrial customers;

      (10) Other information as the division deems relevant and useful to the public.

 

     39-1-57. Assignment. – (a) A transfer to an assignee of any interest in a securitization

order, including any intangible transition property arising therefrom, and any revenues or other

proceeds arising in respect of such property, whenever realized, shall be perfected as against third

parties, including any other purchaser from the transferor, when:

     (i)(1) the related securitization order becomes effective,;

     (ii)(2) a written instrument of assignment has been executed by the assignor and

delivered to the assignee,; and

     (iii)(3) a statement describing the assignment has been filed with the commission in

accordance with its rules established pursuant to section 39-1-56. A filing shall be effective as of

the date of assignment, if made on or before the date of the assignment or within ten (10) days

thereafter.

     (b) The relative priority of interest of two or more assignees for value, and without

notice, who have filed in accordance with the rules of the commission, shall be determined by

reference to the order in which their statements have been filed; and, if an assignment with

respect to which a complying filing has been made shall for any purpose of law be treated as a

security interest, the filing shall be deemed effective as a filing with respect to such security

interest.

 

     39-1-59. True sale. – (a) To better implement the purposes of sections 39-1-43 -- 39-1-

60, inclusive, with a view to maximizing customer savings intended to be accomplished thereby,

in the event that all or a portion of the interest of an electric distribution company or assignee in a

securitization order, including any intangible transition property arising therefrom, is transferred

in a transaction that is approved in the securitization order and which the governing

documentation expressly states to be a sale or other absolute transfer of the transferor's right, title

and interest in the portion of such order and intangible transition property so transferred, then

such transfer shall be treated as a sale or other absolute transfer of the interest so transferred, as in

a true sale and not as a pledge or other financing thereof and shall be deemed to constitute a

sufficient transfer of dominion over such transferred portion of the securitization order and the

intangible transition property to constitute a true sale. For this purpose, the absolute nature of

such a sale or other transfer shall not be affected or impaired in any manner by, among other

things, (i) the assignor's retention of bare legal title to intangible transition property for the

purpose of servicing or supervising the servicing of such property and collections with respect

thereto, (ii) the assignor's retention, or acquisition, as a part of the assignment transaction or

otherwise, of a de minimis equity interest not exceeding five percent (5%) in the intangible

transition property for investment purposes, or the provision of credit enhancement at market

rates for the same de minimis portion of such property, (iii) any provision in the securitization

order determining the order in which amounts are deemed collected, on either a priority or ratable

basis, in respect of intangible transition charges and other rates or charges, excluding taxes,

collected from customers of the electric distribution company, in the event of partial payment,

(iv) the fact that only a portion of the intangible transition property is transferred, or (v) the fact

that the electric distribution company or an affiliate thereof acts as the collector of intangible

transition charges in connection with intangible transition property.

     (b) Notwithstanding such a sale or other absolute transfer of intangible transition

property, the consideration received by an electric distribution company or assignee in respect of

any such sale or transfer shall not be subject to any state or local taxes, or any surcharges based

on such taxes, now or hereafter imposed, nor shall the assignee of intangible transition property

be considered to be a public utility or a party providing electric services for purposes of this

chapter. The electric distribution company or other party providing electric services with respect

to which intangible transition charges are authorized and/or required to be imposed shall be the

party obligated to collect and/or be liable to pay each of the foregoing taxes with respect to such

charges. In addition, notwithstanding such sale or other absolute transfer, the commission shall

continue to have jurisdiction to take such further actions as are required or permitted to be taken

with respect to the securitization order in accordance with the terms of such order, and pursuant

to the provisions of this chapter, notwithstanding that the assignee or financing party is not an

electric distribution company or other party that would otherwise be subject to the jurisdiction of

the commission.

 

     SECTION 10. Sections 39-1-27.2 and 39-1-27.5 of the General Laws in Chapter 39-1

entitled "Public Utilities Commission" are hereby repealed.

 

     39-1-27.2. Retail electric licensing commission established. -- (a) There is hereby

established a retail electric licensing commission, which shall consist of nine (9) members, all of

whom shall be residents of the state, and who shall be appointed as follows:

      (1) Within thirty (30) days of August 7, 1996:

      (i) The governor shall appoint three (3) members as follows:

      (A) One of whom shall be the administrator of the division of public utilities and carriers

within the public utilities commission;

      (B) One of whom shall be the director of the department of environmental management;

and

      (C) One of whom shall be a member of the public;

      (ii) The senate majority leader shall appoint three (3) members as follows:

      (A) One of whom shall be selected from nominations received from the operators of

electric utility companies conducting business in Rhode Island;

      (B) One of whom shall be a member of the senate; and

      (C) One of whom shall be a member of the public;

      (iii) The speaker of the house of representatives shall appoint three (3) members as

follows:

      (A) One of whom shall be selected from nominations received from the operators of

electric utility companies conducting business in Rhode Island.

      (B) One of whom shall be a member of the house of representatives; and

      (C) One of whom shall be a member of the public.

      (b) Forthwith upon appointment of its members, the commission shall meet at the call of

the speaker of the house of representatives and organize and select from among its members a

chairperson. Vacancies in the commission shall be filled in like manner as the original

appointment.

      (c) Members of the commission shall not be compensated, but shall be reimbursed for all

reasonable and necessary expenses incurred in the carrying out of their official duties by the

department of business regulation.

      (d) All departments and agencies of the state shall furnish such advice and information,

documentary and otherwise, to the commission and its agents as is deemed necessary or desirable

by the commission to facilitate the purposes of this act.

      (e) The speaker of the house of representatives is hereby authorized and directed to

provide administrative support, including suitable quarters for the commission and clerical

support, as deemed necessary by the commission to facilitate the purposes of this chapter.

      (f) The commission shall prepare a plan pursuant to the provisions of section 39-1-27.1,

and shall submit that plan to the general assembly not later than January 1, 1997. In addition, the

commission shall consider such other matters related to the implementation of the Utility

Restructuring Act of 1996 as it so deems, providing advice and recommendations thereon, and the

commission shall expire on April 30, 1997.

 

     39-1-27.5. Performance based rates (PBR) for electric distribution companies. -- (a)

To prevent residential customers from paying higher rates as a result of the phased introduction of

competition to commercial and industrial customers pursuant to section 39-1-27.3, and to hold

overall rate increases to the level of inflation, for the period beginning January 1, 1997 and

ending on December 31, 1998, electric distribution companies shall implement a performance

based rate plan. Electric distribution companies shall be precluded from filing to increase their

rates pursuant to section 39-3-11 or from seeking increases in their purchased power adjustment

clause for non fuel increases in purchased power expense under contracts with wholesale power

suppliers when those increases would become effective after a full suspension during the period

defined above ("the PBR period"), and during the PBR period only performance based rate

increases as provided in this section shall be implemented. Performance based increases

calculated in accordance with this section shall take effect for usage on and after January 1 of

each year during the PBR period and shall be determined in accordance with the following

procedure. On or before November 15 of 1996 and 1997, each electric distribution company shall

file a report with the commission detailing the earned return on common equity from intrastate

operations for the twelve (12) months ended as of the preceding September 30. Electric

distribution companies shall be authorized to increase their base rates by a per kilowatt-hour

factor equal to the average revenue per kilowatt-hour received by the electric distribution

company during the prior twelve (12) month period ending September 30, excluding the costs of

fuel and demand side management programs multiplied by the rate of inflation as measured by

the change in the consumer price index over the most recent twelve (12) months for which data is

available. Electric distribution companies having earned returns on equity greater than the return

allowed as of July 1, 1996 by the commission (currently allowed rate) shall be required to credit

to or for the benefit of customers one hundred percent (100%) of all earnings in excess of one and

one-half percent (1.5%) above the currently allowed rate and fifty percent (50%) of all earnings

between the currently allowed rate and one and one-half percent (1.5%) above the currently

allowed rate of return on common equity by refunding revenues associated with such earnings

through a refund factor implemented over a twelve (12) month period. Electric distribution

companies that earned less than six percent (6%) return on common equity shall be authorized to

increase their base rates by inflation as measured above and to implement a surcharge to collect

over twelve (12) months the revenue necessary to make up the difference between the return on

common equity earned during the historic period and six percent (6%). During the PBR period,

electric distribution companies shall also be authorized, with commission approval, to change

their base rates to reflect factors reasonably beyond their control including, but not limited to,

changes in federal, state and local taxes and environmental remediation costs. On or before July

1, 1997, the commission shall establish performance standards to ensure that historic levels of

safety, reliability and customer service do not deteriorate during the PBR period. Specifically, the

commission shall establish symmetric performance standards in these areas that provide the

company the opportunity to incur in aggregate an annual penalty or reward equal to one

percentage point return on common equity that shall not be considered in determining any other

returns on common equity within this section. Notwithstanding the foregoing, rates applicable to

low income customers shall not be increased for any rate increases authorized pursuant to this

subsection. Nothing in this paragraph shall be deemed to preclude an electric distribution

company from seeking approval from the commission for:

      (1) Changes in the fully reconciling adjustment clauses in place to reflect changes in the

cost of fuel and demand side management programs;

      (2) Reconciling adjustments pursuant to purchase power clauses that do not reflect

increases in level of wholesale rates;

      (3) Revenue neutral rate design changes; and

      (4) Accounting changes.

      (b) Nothing in this subsection shall preclude the commission from considering the

interests of ratepayers in the interpretation of this subsection. This section shall not apply to a

quasi-municipal corporation.

 

     SECTION 11. Section 39-2-1 of the General Laws in Chapter 39-2 entitled "Duties of

Utilities and Carriers" is hereby amended to read as follows:

 

     39-2-1. Reasonable and adequate services -- Reasonable and just charges. -- (a)

Every public utility is required to furnish safe, reasonable, and adequate services and facilities.

The rate, toll, or charge, or any joint rate made, exacted, demanded, or collected by any public

utility for the conveyance or transportation of any persons or property, including sewage, between

points within the state, or for any heat, light, water, or power produced, transmitted, distributed,

delivered, or furnished, or for any telephone or telegraph message conveyed or for any service

rendered or to be rendered in connection therewith, shall be reasonable and just, and every unjust

or unreasonable charge for the service is prohibited and declared unlawful, and no public utility

providing heat, light, water, or power produced, transmitted, distributed, delivered, or furnished

shall terminate the service or deprive any home or building, or whatsoever, of service if the

reason therefor is nonpayment of the service without first notifying the user of the service, or the

owner or owners of the building as recorded with the utility of the impending service termination

by written notice at least ten (10) days prior to the effective date of the proposed termination of

service.

      (b) Any existing rules and regulations dealing with the termination of utility service and

establishing reasonable methods of debt collection promulgated by the commission pursuant to

this chapter and the provisions of section 39-1.1-3, including but not limited to, any rules and

regulations dealing with deposit and deferred payment arrangements, winter moratorium and

medical emergency protections, and customer dispute resolution procedures, shall be applicable

to any public utility which distributes electricity.

      (c) The commission shall promulgate such further rules and regulations as are necessary

to protect consumers following the introduction of competition in the electric industry and which

are consistent with this chapter and the provisions of section 39-1.1-3. In promulgating such rules

and regulations, the commission shall confer with the Retail Electric Licensing Commission and

shall give reasonable consideration to any and all recommendations of the Retail Electric

Licensing Commission.

      (d) (Effective until April 15, 2006.) The commission shall promulgate and administer

such rules and regulations as may be necessary to implement the purpose of this subsection and to

provide for restoration of electric and/or gas service to Protected Status Customers who are

terminated from utility service prior to August 15, 2005.

      (1) Notwithstanding the provisions of part V section 4(E)(1)(B) and (C) of the Public

Utilities Commission Rules and Regulations Governing the Termination of Residential Electric,

Gas, and Water Utility Service, a protected status customer who is terminated from utility service

prior to August 15, 2005, shall be eligible to have electric and/or gas utility service restored

providing the following conditions are met: (i) the customer pays twenty percent (20%) of the

customer's unpaid balance; (ii) the customer agrees to pay one twenty-fourth (1/24) of the

customer's remaining balance per month for twenty-four (24) months, (iii) the customer agrees to

remain current with payments for current usage; and (iv) the customer has shown, to the

satisfaction of the division, that the customer is reasonably capable of meeting the payment

schedule provided for by provisions (i)-(iii) of this subsection 39-2-1(d)(1), and that the customer

shall agree to waiver the right to a hearing for termination of service; provided that this waiver

provision shall apply exclusively to the provisions of this subsection and shall have no

precedential value for other proceedings before the commission or the division. Once service is

restored under the provisions of this subsection, such service may be terminated if payment is not

made within thirty (30) days after the billing date; provided, however, that termination of service

shall not take place during the moratorium on shut-offs.

      (2) A customer terminated from service under the provisions of subsection 39-2-1(d)(1)

shall be eligible for restoration of service in accordance with the applicable provisions of part V

section 4(E)(1)(C) of the Public Utilities Commission Rules and Regulations Governing the

Termination of Residential Electric, Gas, and Water Service.

      (3) The provisions of subsection 39-2-1(d)(1) shall be available if the initial payment for

restoration of service is made between April 15, 2005, and August 15, 2005, inclusive.

 

     SECTION 12. Section 39-6-14 of the General Laws in Chapter 39-6 entitled "Railroad

Companies" is hereby amended to read as follows:

 

     39-6-14. Counsel fees in actions against railroads. -- If any person having lawful

claims upon any railroad corporation for overcharge for freight or passage, or for injury or loss of

merchandise, or for damage by unlawful or unwarrantable delay in the transportation or delivery

of merchandise, or for injury to the person, or for the refusal to transport or deliver persons or

property, shall give written notice of the same, addressed to the president or treasurer or master of

transportation of the corporation, and delivered to either of the officers or to any agent having

charge of any depot of the corporation, fourteen (14) days previous to commencing suit for the

same, and if the corporation neglects or refuses to pay the lawful claim, then the complainant, if

he or she recovers more than the amount, if any, tendered by the corporation, shall also recover

reasonable compensation for the services of his or her counsel, to be allowed by the court in

addition to the actual damage; and if a less amount shall be recovered, than then a reasonable

allowance shall be made by the court for the services of the counsel of the corporation, to be

taxed in addition to and to be allowed with the defendant's costs as now taxed and allowed by

law.

 

     SECTION 13. Section 39-8-2 of the General Laws in Chapter 39-8 entitled "Railroad

Crossings" is hereby amended to read as follows:

 

     39-8-2. Raising or lowering of highway to eliminate grade crossing. -- If the town

council of any town wherein a turnpike or highway crossed by a railroad on a level therewith is

situated, are is of the opinion that it is necessary for the security of the public that the turnpike or

highway should be raised or lowered, so as to pass over or under the railroad, they may in writing

request in writing that the corporation owning the railroad so to raise or lower the turnpike or

highway. If the corporation shall neglects or refuses so to do so, the town council may apply to

the commission to decide upon the reasonableness of the request. If the commission, after due

notice and hearing the parties, shall decide that the lowering or raising of grade is necessary for

the security of the public, the corporation shall comply with the decision; provided, that either

party shall have the right, in accordance with chapter 5 of this title, to petition the supreme court

for relief, and the court shall have full power to finally decide the question as to the necessity of

changing the grade. The cost and expense of making the change of grade shall be borne by the

railroad corporation and the town asking for the change, in the proportion as may be decided by

the court. If, after the decision of the court that a change of grade is necessary, or if, having taken

no appeal from the decision of the commission, the corporation shall unreasonably neglect or

refuse to change the grade, the town council may proceed to make the change, and may in an

action against the corporation recover all charges and expenses occasioned by making the

alterations.

 

     SECTION 14. Section 39-12.1-1 of the General Laws in Chapter 39-12.1 entitled "The

Towing Storage Act" is hereby amended to read as follows:

 

     39-12.1-1. Declaration of purpose and policy. -- The legislature hereby finds the

following legislation to be in the public interest for these reasons:

      WHEREAS, A tow truck in the hands of an incompetent operator is a dangerous

instrumentality; and

      WHEREAS, The public has an inherent right to ready access to the name, location, and

telephone number of certificated towers,; and

      WHEREAS, The operation of a tow truck on the public highway with a vehicle in tow is

a dangerous instrumentality exposing others on or about the highway to loss or damage, which

must be covered by adequate insurance; and

      WHEREAS, The motoring public has a right, when delegating to law enforcement the

selection of an operator in the towing-storage business, to expect that the operator selected and

responding will be competent; and

      WHEREAS, The motoring public has a right when delegating to law enforcement the

selection of an operator in the towing-storage business, to expect that the charges for the services

to be rendered will be reasonable and compensatory, and that the operator is physically equipped

in his or her business to function properly; and

      WHEREAS, The towing and storage of a vehicle without the owner's consent, as is the

case in most police instigated tows, requires certain procedures to assure the owner that rights of

due process of law are not violated; and

      WHEREAS, The owner or person in control of private property of real estate has a right

to be free from trespass by vehicle on the private property; and to have any such trespassing

vehicle removed at the owner's expense; and

      WHEREAS, The police powers delegated by the legislature of the state include the

power of the police, even without the owner's consent, to have public ways cleared of conditions

which, in the opinion of the officer, creates a hazardous condition to the motoring public; to have

removed abandoned, abandoned and of no value and unattended vehicles; to have removed and/or

relocated vehicles in violation of parking ordinances; and to have removed any vehicle under

control of any person arrested for any criminal offense; and

      WHEREAS, The process of selection of the operator of a towing-storage business for

police work is unique in that law enforcement, though having the legal duty to order the work,

has no legal duty to pay costs and charges connected therewith, the same being the duty of the

vehicle owner.

 

     SECTION 15. Section 39-17-2 of the General Laws in Chapter 39-17 entitled

"Franchises" is hereby amended to read as follows:

 

     39-17-2. Purposes for which permitted -- Duration -- Protection of existing

businesses -- Landowner's rights. -- Any grants, whether by ordinance or by contract, may

confer upon any corporation created by the general assembly for the purpose of distributing

water, or for the purpose of producing, selling, and distributing currents of electricity to be used

for light, heat, or motive power, or for the purpose of manufacturing, selling, and distributing

illuminating or heating gas, or for the purpose of operating street railways by any motive power,

or for the purpose of operating telephones, the exclusive right, for a time not exceeding twenty-

five (25) years, to erect, lay, construct, and maintain for the purposes for which the corporation is

created, poles, wires, pipes, conduits, rails, or cables, with necessary and convenient

appurtenances as may be required for the conduct of the business of the corporation, in, over or

under the streets of the town or city; provided, however, that no grant of exclusive rights or

franchises for any of the purposes described in this section shall be made by any city or town

wherein, at the time a corporation created for the same purpose, or a person duly authorized by

law to use the streets for such purpose, shall be in actual use and enjoyment of the rights, except

to the corporation or person already carrying on business in the city or town; and provided,

further, that whenever in any city or town more than one corporation shall at the time be in actual

use and enjoyment of portions of the streets and highways for any of the purposes described in

this section, no exclusive right or franchise shall be granted to either without the consent of the

other; and provided, further, that no grant shall prevent any town or city from permitting any

person or corporation to use streets or highways for any of the purposes described in this section

in order to connect and serve any two (2) or more estates owned by the person or corporation.

 

     SECTION 16. Sections 40-5.1-9, 40-5.1-31 and 40-5.1-46 of the General Laws in

Chapter 40-5.1 entitled "Family Independence Act" are hereby amended to read as follows:

 

     40-5.1-9. Cash assistance. -- (a) Entitlement to cash assistance. - A family found by the

department to meet the eligibility criteria set forth in this chapter shall be entitled to receive cash

assistance from the date of submitting a signed application. The family members shall be eligible

for cash assistance for so long as they continue to meet the eligibility criteria and parents shall be

eligible so long as they meet the terms and conditions of the work requirements of subsection (c).

The monthly amount of cash assistance shall be equal to the payment standard for the family

minus the countable income of the family in that month. The department is authorized to reduce

the amount of assistance in the month of application to reflect the number of the days between the

first (1st) day of the month and the effective date of the application.

      (b) Payment standard. - The payment standard is equal to the sum of the following: three

hundred twenty-seven dollars ($327) (two hundred seventy-seven dollars ($277) for a family

residing in subsidized housing) for the first person, one hundred twenty-two dollars ($122) for the

second person, one hundred five dollars ($105) for the third person and eighty dollars ($80) for

each additional person.

      (c) (1) Work requirements. - No more than forty-five (45) days following the date on

which a family has been notified by the department in writing that it is eligible for cash assistance

under the act, the department shall develop a family financial plan pursuant to section 40-5.1-5

and, unless the parent is exempt from work pursuant to paragraph (iv), the department shall assess

the parent's educational and vocational abilities and develop an individual employment plan

pursuant to section 40-5.1-5. In the case of a family including two (2) parents, the department

may develop an employment plan for each parent if the parents so request.

      (2) The employment plan shall specify the parent's work activity and the supportive

services which will be provided by the department to enable the parent to engage in the work

activity.

      (i) During the first twenty-four (24) months of the employment plan, the parent shall

participate, for a minimum of twenty (20) hours per week for parents whose youngest child in the

home is under the age of six (6), and for a minimum of thirty (30) hours per week for parents

whose youngest child in the home is six (6) years of age or older, in one or more of the following

work activities, as appropriate, in order to help the parent obtain stable full-time paid

employment:

      (A) Paid employment, (including on-the-job training);

      (B) A community work experience in a program which satisfies the requirements of

section 40-5.1-23;

      (C) A training or work readiness program approved by the department and conducted at

a job site if the program involves supervised participation in work at the site;

      (D) During the first six (6) months of eligibility (or for a longer period if the department

determines it necessary to prepare the parent to obtain stable full-time employment), successful

participation in an approved work readiness program as defined in section 40-5.1-22;

      (E) During the first three (3) months of eligibility (or for a longer period if the

department determines it necessary to prepare the parent to obtain stable full-time employment),

participation in an approved rapid job placement program as defined in section 40-5.1-20;

      (F) A supervised individual job search which meets the conditions set forth in section

40-5.1-21;

      (G) For a parent under the age of twenty (20) without a high school diploma or the

equivalent, successful participation on a full-time basis in a program to secure such diploma or

the equivalent;

      (H) For a parent age twenty (20) or older, without basic literacy or English literacy skills,

successful participation on a full time basis in a program to secure such skills; and

      (I) For a parent age twenty (20) or older (and a parent under the age of twenty (20) who

has a high school degree or the equivalent or a parent under the age of twenty (20) for whom

attendance at a high school is determined to be inappropriate) successful participation in a

vocational education, skills or job training program, including without limitation, a program of

postsecondary education, which the department determines is likely to result in regular full-time

employment at wages sufficient to eliminate eligibility for cash assistance under the act.

      (ii) Beginning with the twenty-fifth (25th) month of the employment plan, the parent

shall participate in one or more of the following work activities for at least twenty (20) hours per

week for parents whose youngest child in the home is under the age of six (6) and thirty (30)

hours per week for parents whose youngest child in the home is six (6) years of age or older:

      (A) Paid employment (including on-the-job training);

      (B) A community work experience program which satisfies the requirements of section

40-5.1-23;

      (C) A training program approved by the department and conducted at a job site if the

program involves supervised participation in work at the site.

      (iii) The following parents shall be deferred from the participation requirement in

paragraph (ii):

      (A) A parent under the age of twenty (20) without a high school diploma or the

equivalent who is successfully participating, on a full-time basis, in a program to secure such

diploma or the equivalent;

      (B) A single parent age twenty (20) or older, without basic literacy or English language

skills, who: (I) is participating in a full-time program but is unable to complete a literacy or

language skills program during the first twenty-four (24) months of his or her employment plan,

or (II) who the department has determined is unable to secure paid employment without

additional language or literacy skills, and who is successfully participating in a program to secure

such skills;

      (C) A parent age twenty (20) years or older, who is successfully participating in a

vocational education, skills or job training program, including without limitation, a program of

postsecondary education, which the department determines is likely to result in regular full-time

employment at wages sufficient to eliminate eligibility for cash assistance under the act;

provided, however, that the parent began the program prior to the twenty-fifth (25th) month of his

or her employment plan; provided, further, however, that participation shall not be deemed a

work activity after the thirty-sixth (36th) month of the employment plan;

      (D) Upon completion of any activity in subparagraphs (A)--(C), the parent shall be

subject to the work activity requirements of paragraph (ii).

      (iv) Paragraphs (i) and (ii) shall not apply to a single parent if (and for so long as) the

department finds that he or she is:

      (A) Unable to comply with the employment plan because of an illness which, on the

basis of medical evidence, is serious enough to temporarily prevent work;

      (B) Unable to comply with the employment plan because of a physical or mental

impairment which, on the basis of medical evidence, either by itself or in conjunction with age,

prevents work;

      (C) Unable to comply with the employment plan because of the illness or incapacity of a

minor child or spouse who requires full-time in-home care, and for whom the person is providing

care;

      (D) Caring for a child below the age of one; provided, however, that a minor parent

without a high school diploma or the equivalent, and who is not married, shall not be exempt

from subparagraph (i)(G) for more than twelve (12) weeks from the birth of the child;

      (E) Sixty (60) years of age or older;

      (F) A pregnant woman in her third trimester;

      (G) Otherwise exempt by the department.

      (v) (A) The amount of cash assistance to which an otherwise eligible family is entitled

under the act, shall be reduced by the portion of the family's benefit attributable to any parent

who, without good cause, has failed to enter into an individual employment plan or has failed to

comply with his or her individual employment plan, as required under this chapter; provided that

the reduction shall be applied during the first eighteen (18) months, whether or not consecutive,

of such failure or non-compliance by the parent.

      (B) The department shall terminate cash assistance to a family if any parent in the family

has failed, without good cause, to enter into an individual employment plan or to comply with his

or her individual employment plan, for eighteen (18) months, whether or not consecutive.

      (C) For purposes of paragraph (v) the benefit reduction for a family size of two (2) shall

be computed utilizing a family size of three (3).

      (vi) (A) If the family's benefit has been reduced in accordance with paragraph (v)(A) for

less than eighteen (18) months, whether or not consecutive, due to the parent's failure to enter into

an individual employment plan or failure to comply with the terms of his or her individual

employment plan, benefits shall be restored to the full amount beginning with the initial payment

made on the first of the month following the month in which the parent (1) enters into an

individual employment plan and demonstrates compliance with the terms thereof, or (2)

demonstrates compliance with the terms of his or her existing individual employment plan, as

such plan may be amended by agreement of the parent and the department.

      (B) If the family's benefit has been terminated in accordance with paragraph (v)(B) due

to the failure by one or more parents to enter into an individual employment plan or failure to

comply with the terms of his or her individual employment plan, the family may re-apply for

benefits and benefits shall be restored to the family in the full amount the family is otherwise

entitled to under this chapter beginning on the first of the month following the month in which all

parents in the family who are subject to the employment plan requirements under this chapter (1)

enter into an individual employment plan and demonstrate compliance with the terms thereof, or

(2) demonstrate compliance with the terms of the parent's individual employment plan in effect

at the time of termination of benefits, as such plan may be amended by agreement of the parent

and the department.

      (vii)(A) Notwithstanding paragraphs (i) and (ii) of this subsection, in the case of a family

consisting of two (2) parents, (except as provided in paragraph (xi) below), beginning seven (7)

days following completion of the family financial plan and the individual employment plan(s), or

as soon as practical thereafter, one parent shall be engaged in work activities for at least thirty-

five (35) hours per week during the month, not fewer than thirty (30) hours per week of which are

attributable to one or more of the following activities:

      (A)(I) Unsubsidized employment;

      (B)(II) Subsidized private sector employment;

      (C)(III) Subsidized public sector employment;

      (D)(IV) Work experience if sufficient private sector employment is not available;

      (E)(V) On-the-job training;

      (F)(VI) Job search and job readiness assistance;

      (G)(VII) Community service program;

      (H)(VIII) Vocational educational training (not to exceed twelve (12) months with respect

to any individual); or

      (I)(IX) The provision of child care services to an individual who is participating in a

community service program.

      (B) Moreover, in the case of a two (2) parent family wherein one parent is engaged for

at least thirty-five (35) hours per week in the work activities specified immediately above, and if

the family requests child care assistance under this chapter, and an adult in the family is not

disabled or caring for a severely disabled child, the second parent must be engaged in work

activities during the month for not fewer than twenty (20) hours per week in one or more of the

following activities:

      (A)(I) Unsubsidized employment;

      (B)(II) Subsidized private sector employment;

      (C)(III) Subsidized public sector employment;

      (D)(IV) Work experience if sufficient private sector employment is not available;

      (E)(V) On-the-job training; or

      (F)(VI) Community service programs;

      (viii) Paragraph (vii) shall not apply:

      (A) To a parent who is ill and the department determines on the basis of medical

evidence that the illness is serious enough to temporarily prevent entry into employment or

engaging in the activities listed in paragraph (vii) or to provide care for his or her children; or

      (B) To a parent who is incapacitated by a physical or mental impairment which the

department has determined on the basis of medical evidence either by itself or in conjunction with

age, prevents the individual from engaging in employment or training or providing care for his or

her children; or

      (C) To a parent who is providing full-time in-home care to a minor child or parent who,

due to illness or incapacity, requires full-time in-home care; or

      (D) If otherwise authorized by the department for cause.

      (ix) If, during any month, parents required to comply with paragraph (vii) fail, without

good cause to do so, the family shall be deemed for all purposes under this section to include only

one parent. The parent included in the family shall be the parent which that the department

determines has accepted primary responsibility for child care. The parent included in the family,

unless exempt pursuant to paragraph (iv), shall be required to comply with paragraphs (i) and (ii)

of this subsection and shall be subject to the penalties in paragraphs (v) and (vi), as applicable, if

the parent fails to do so. Notwithstanding the foregoing, in determining the amount of cash

assistance to which a family is entitled under this chapter, the earnings of any parent living in the

same household as a family eligible for cash assistance, shall be deemed to be earned income of

the family for purposes of section 40-5.1-10(b).

      (x) A parent's failure, without good cause, to accept a bona fide offer of work, including

full-time, part-time and/or temporary employment, or unpaid community service, to the extent the

offer of work is not inconsistent with the employment plan shall be deemed a failure to comply

with this section, provided that:

      (A) The parent is able to perform the work offered; and

      (B) Appropriate child care (as defined in subsection (e) hereof) is made available to the

parent.

      (xi) A two (2) parent family that includes a disabled parent shall be considered to be a

single parent family for purposes of applying the work requirements of paragraphs (i) and (ii).

      (d) Child care. - Notwithstanding any other provision of this section, no single parent, or

both parents meeting the requirements of paragraph (vii), shall be required to work to the extent

that appropriate child care is necessary for the parent to do so and the department determines that

such appropriate child care is unavailable for fiscal or other reasons. For purposes of this section

"appropriate child care" means child care which is provided by a person or organization qualified

and authorized to provide such care by the department of children, youth, and families or such

other lawful providers as determined by the department of children, youth, and families. Child

care shall be considered "necessary" under this section for any child below the age of thirteen

(13), or any children age thirteen (13) years or older who are under supervision of the family

court or who require care because of a physical or mental impairment.

      (e) Work expenses. - The department shall provide an allowance for transportation costs

necessary to comply with the employment plan, provided, however, that the amount of such

reimbursement shall not exceed the sum of three dollars ($3.00) per day.

 

     40-5.1-31. Department of human services. -- (a) Except as otherwise provided for

herein, the director of the department of human services is responsible for implementation of this

chapter.

      (b) No later than March 1 each year, the director shall submit a plan to the general

assembly showing how, within available resources, the department expects to operate the

programs authorized under this chapter in the succeeding fiscal year. The plan shall, to the extent

the director deems appropriate, take into account the results of the research and program

evaluation conducted by the board of governors for higher education pursuant to section 40-5.1-

32 and the views of the advisory commission established pursuant to section 40-5.1-35. It shall

describe how the department intends to coordinate its activities with those of other governmental

departments and organizations and with those nonprofit nongovernment organizations which

provide services to the same population receiving assistance under this chapter. Beginning in state

fiscal year 1998, the plan shall include an assessment of the minimum financial resources which

Rhode Island families of varying compositions require to provide themselves with adequate food,

shelter, clothing, education and health care and, in the case of working families, to pay for work

related expenses, including without limitation, child care, transportation and clothing. The

assessment shall reflect the child support guidelines issued from time to time by the Rhode Island

family court.

      (c) The department is empowered and authorized to submit its plan for services under the

act to the federal government or any agency or department thereof having funds available for

benefits to low income families for approval pursuant to the provisions of the Social Security Act,

42 U.S.C. section 301 et seq. The department shall act for the state in any negotiations relative to

the submission and approval of the plan and/or waivers and may make any arrangement or

changes in its plan and/or waivers not inconsistent with this chapter which may be required or

permitted by the Social Security Act or rules and regulations promulgated pursuant thereto, to

obtain and retain approval and to secure for this state the benefits of the provisions of the federal

act relating to family assistance. The department shall make reports to the federal government or

any agency or department thereof in the form and nature required by it, and shall in all respects

comply with any request or direction of the federal government or any agency or department

thereof which may be necessary to assure the correctness and verification of the reports.

      (d) (1) The department of human services is hereby authorized and directed to expedite

the implementation of this act by submitting to the federal government, on behalf of the state,

such state plan amendments and any federal waiver requests which it deems necessary to fully

implement the provisions of this act and to secure for this state the benefits of federal financial

participation and/or grants for the above referenced programs, as amended, pursuant to titles IV

and XIX of the federal Social Security Act, 42 U.S.C. sections 601 et seq. and 1396 et seq., and

Subchapter II-B of the Child Care and Development Block Grant codified at 42 U.S.C. 9858 et

seq., and as such acts may hereafter be recodified or amended by such acts as may be considered

and enacted by the Congress of the United States.

      (2) Any provisions of chapters 5.1, 6 and 6.2 of this title and section 42-12-3 which are

inconsistent with federal law or regulations shall be void unless the department receives an

exemption or waiver from the federal government to implement the provision.

      (3) The department of human services is hereby authorized and directed to implement

this act only in accordance with the terms and conditions of state plan amendments, waivers, or

other approvals granted by the federal government and changes in rules, regulations and policies

of the department that are promulgated pursuant to chapter 35 of title 42.

 

     40-5.1-46. Screening for domestic violence -- Waiver of program requirements. -- (a)

The department shall:

     (i)(1) screen and identify individuals with a history of domestic violence applying for or

receiving assistance while maintaining the confidentiality of such individuals;

     (ii)(2) refer such individuals to counseling and supportive services; and

     (iii)(3) waive, pursuant to a determination of good cause and for so long as necessary,

cash assistance program requirements relating to time limits for individuals receiving assistance,

residency requirements, child support cooperation requirements, and work requirements, in cases

where compliance with such requirements would make it more difficult for individuals receiving

assistance under this chapter to escape domestic violence or unfairly penalize such individuals

who are or have been victimized by such violence, or individuals who are at risk of further

domestic violence.

      (b) For purposes of this section, the term "individual with a history of domestic violence"

means an individual who has been subjected to:

      (i)(1) Physical acts that resulted in, or threatened to result in, physical injury to the

individual;

      (ii)(2) Sexual abuse;

      (iii)(3) Sexual activity involving a dependent child;

      (iv)(4) Being forced as the caretaker relative of a dependent child to engage in

nonconsensual sexual acts or activities;

      (v)(5) Threats of, or attempts at, physical or sexual abuse;

      (vi)(6) Mental abuse; or

      (vii)(7) Neglect or deprivation of medical care.

 

     SECTION 17. Sections 40-6-12, 40-6-16 and 40-6-27.1 of the General Laws in Chapter

40-6 entitled "Public Assistance Act" are hereby amended to read as follows:

 

     40-6-12. Records as to assistance. – (a) All records pertaining to the administration of

public assistance pursuant to this chapter and chapter 8 of this title are hereby declared to

constitute confidential matter. It shall be unlawful for any person to make use of, or cause to be

used, any information contained in records for purposes not directly connected with the

administration thereof, except with the consent of the individual concerned.

     (b) The director of the department shall have the power to establish rules and regulations

governing the custody, use, and preservation of the records, papers, files, and communications

dealing with the administration of public assistance. The rules and regulations shall have the same

force and effect as law. The records shall be produced in response to subpoena duces tecum

properly issued by any federal or state court; provided, however, that the purpose for which the

subpoena is sought is directly connected with the administration of public assistance. No

subpoena shall be issued by a court asking either for the records, or for persons having custody or

access to the records, unless the litigation involved in such matters is directly connected with the

administration of public assistance.

     (c) Any person who by law is entitled to a list of individuals receiving any of the

assistance as provided in this section, shall not publish or cause to be published the list except by

the express consent of the director of the department, or to make use thereof for purposes not

directly connected with the administration thereof. Any person violating any of the provisions of

this section, or the lawful rules and regulations made pursuant to this section, shall be guilty of a

misdemeanor, and shall be fined not more than two hundred dollars ($200) or shall be imprisoned

for not more than six (6) months, or both.

     (d) Nothing in this section shall be deemed to prohibit the director of the department, or

his or her agents duly authorized for that purpose, from issuing any statistical material or data, or

publishing or causing the data to be published whenever he or she shall deem it to be in the public

interest. The director of the department may inquire into the records of any state department or

agency in the course of his or her administration of public assistance.

 

     40-6-16. Fraudulent use of food stamps. – (a) Any person who by any fraudulent device

obtains, or attempts to obtain, or aids or abets any person to obtain food stamps issued pursuant to

the Food Stamp Act of 1964, as amended, 7 U.S.C. section 2011 et seq., shall be guilty of

larceny, and upon conviction thereof, shall be punished by imprisonment of not more than five

(5) years or by fine of not more than one thousand dollars ($1,000) or both, if the value of the

food stamps to which one is not entitled shall exceed five hundred dollars ($500), or by

imprisonment by less than one year or by a fine of not more than five hundred dollars ($500) or

both, if the value of the food stamps to which one is not entitled, shall not exceed five hundred

dollars ($500).

     (b) Upon conviction of the felony or misdemeanor, the individual shall be ineligible to

participate in the food stamp program for not less than six (6) and not more than twenty-four (24)

months, as determined by the court; provided, that the disqualification applies only to the

individual so convicted and does not render the entire household ineligible for the program.

 

     40-6-27.1. Supplementary cash assistance program for severely disabled and elderly

residents. -- (a) There is hereby established a cash assistance program for disabled and elderly

legal immigrant residents of the state who received a state supplementary assistance payment

under section 40-6-27 on July 1, 1997, who are in need, and who become ineligible after July 1,

1997 for federally funded assistance under the supplemental security income program, Title XVI

of the Social Security Act, 42 U.S.C. section 1381 et seq. due solely to the restricted eligibility

rules imposed by section 402(a)(1) of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996, (Public Laws 104-193) and as such section may hereafter be

amended.

      (b) Benefits under this program shall be provided only to such residents specified in

subsection (a) who are aliens lawfully admitted for permanent residence or otherwise

permanently residing in the United States under color of law and benefits shall not be provided to

illegal or undocumented aliens.

      (c) The income and resource rules, methodologies and limits shall be the same as those

in the Supplemental Security Income Program, Title XVI of the Social Security Act, 42 U.S.C.

section 1381 et seq.

      (d) The monthly amount of cash assistance shall be equal to the appropriate payment

standard as provided in subsection (e) minus the countable income of the recipient in that month.

      (e) The department is authorized and directed to make monthly payments of cash

assistance to eligible recipients in accordance with the following standards of assistance:

      (1) Institutionalized individuals, $40 per month;

      (2) All other individuals, $200 per month.

      (f) Individuals who are receiving a state supplementary assistance payment under section

40-6-27 on July 1, 1997 and who become ineligible for benefits under the supplemental security

income program, Title XVI of the Social Security Act 42 U.S.C., section 1381 et seq., due solely

to their immigrant status shall be deemed eligible for supplementary cash assistance under this

section and shall begin to receive payment in the month following the last month in which

supplemental security income benefits under section 40-6-27 are received.

      (g) The department is directed to promulgate regulations to implement the

supplementary cash assistance program including provisions relating to the determination of

eligibility, and providing recipients with advanced written notification of a decision to reduce or

terminate such benefits. Any notice of a decision to reduce or terminate benefits shall include an

explanation of the reasons therefore, and the notice shall advise the recipient of a right to appeal

under the Administrative Procedures Act, section 42-35-1 et seq.

 

     SECTION 18. Section 40-6.4-8 of the General Laws in Chapter 40-6.4 entitled "Incentive

for Training and Employment" is hereby repealed.

 

     40-6.4-8. Appropriation. -- There is hereby appropriated to the department the sum of

four hundred thousand dollars ($400,000) to be expended during the fiscal year ending June 30,

1988 to carry out the purposes of this chapter, and the state controller is hereby directed to draw

his or her orders upon the general treasurer for the payment of the sum, or so much thereof as

may be required from time to time upon receipt by him or her of vouchers duly authenticated. The

director is authorized to request such appropriations for the fiscal years ending June 30, 1989 and

June 30, 1990 as he or she deems necessary to carry out the purposes of this chapter during the

second (2nd) and third (3rd) years of the demonstration program.

 

     SECTION 19. Sections 40-8-12 and 40-8-13.1 of the General Laws in Chapter 40-8

entitled "Medical Assistance" are hereby amended to read as follows:

 

     40-8-12. Federal approval. – (a) The department is empowered and authorized to submit

its plan for medical assistance to the federal government, or any agency or department thereof

having funds available for medical care benefits provided for in this chapter, for approval

pursuant to the provisions of the federal Social Security Act, 42 U.S.C. section 1396 et seq. The

department shall act for the state in any negotiations relative to the submission and approval of

the plan and may make any arrangement or changes in its plan not inconsistent with this chapter

which may be required by the Social Security Act, or the rules and regulations promulgated

pursuant thereto, to obtain and retain the approval and to secure for this state the benefits of the

provisions of the federal act relating to medical assistance for the needy.

     (b) The department shall make reports to the federal government or any agency or

department thereof in the form and nature required by it, and shall, in all respects, comply with

any request or direction of the federal government or any agency or department thereof which

may be necessary to assure the correctness and verification of the reports.

 

     40-8-13.1. Reimbursement for out-of-state hospital services. – (a) The department of

human services is hereby authorized and directed to amend, effective July 1, 1995, its regulations,

fee schedules and the Rhode Island state plan for medical assistance (Medicaid) pursuant to title

XIX of the federal Social Security Act to provide for reimbursement to out-of-state hospitals for

services provided to eligible recipients in accordance with this section.

     (b) Authorized inpatient hospital services shall be reimbursed at a rate equal to fifty

percent (50%) of the out-of-state hospital's customary charge(s) for such services to title XIX

recipients in that state; provided, however, that in-patient hospital organ transplant services shall

be reimbursed at sixty-one percent (61%) of the out-of-state hospital's customary charge(s) for

such organ transplant services to title XIX recipients in that state. Authorized outpatient hospital

services (other than laboratory services) shall be reimbursed at a rate equal to fifty-three percent

(53%) of the out-of-state hospital's customary charge(s) for such services to title XIX recipients

in that state; outpatient laboratory services shall be reimbursed at the Medicare allowable rate.

     (c) The department may periodically adjust the inpatient and/or outpatient service

reimbursement rate(s) based upon a medical care cost index to be determined by the department.

 

     SECTION 20. Sections 40-8.4-3 and 40-8.4-17 of the General Laws in Chapter 40-8.4

entitled "Health Care For Families" are hereby amended to read as follows:

 

     40-8.4-3. Definitions. – (a) "Family" means a minor child or children and the parent(s) or

relative as defined in section 40-5.1-3, with whom they reside including two parent families in

which one parent is working more than 100 hours per month.

      (b) "Minor child" means a child under the age of eighteen (18) or who is eighteen (18)

and a full-time student in a secondary school or in the equivalent level of vocational or technical

training.

 

     40-8.4-17. Pilot primary care program established. – (a) To increase primary care

access for those state residents who do not have access to health insurance coverage or who are

unable to afford health insurance coverage, the director of the state department of human services

in collaboration with the director of the department of health shall develop a plan for a pilot

primary care program for uninsured residents of the state. The pilot program may include enrollee

premiums and co-insurance payments that are income-based with premiums and/or co-insurance

subsidized by the state. The pilot program may also include catastrophic or reinsurance coverage

provided under the auspices of the state. In designing the pilot program, the director may consider

a variety of service delivery and financing models including capitation payments to private

physicians, a buy-in program under RIte Care and coverage arrangements purchased from

qualified community health centers. In developing the pilot program the director may seek

available federal grant monies, including Medicaid, and private foundation grants.

     (b) The director shall submit the plan for the pilot primary care program to the governor,

the speaker of the house, the president of the senate, the majority leaders of the house and senate

and the chairpersons of the house and senate finance committees by January 15, 2005. The plan

shall include: eligibility criteria for participation in the pilot program, the scope of services to be

offered, the geographic area and population to be served, and cost estimates to implement the

program.

 

     SECTION 21. Sections 40-9-2 and 40-9-17 of the General Laws in Chapter 40-9 entitled

"Services for People who are Blind or Visually Impaired" are hereby amended to read as follows:

 

     40-9-2. General duties of administrator. – (a) The administrator of services for people

who are blind or visually impaired shall devote all of his or her time to the duties of his or her

office and keep at his or her office in the state house a register of individuals who are blind or

visually impaired in the state, describing their condition, cause of blindness, and capacity for

education and industrial training.

     (b) The administrator shall, under the direction of the director, generally be charged with:

      (1) Maintaining a placement service with the object of determining the fitness of

applicants who are blind or visually impaired for work, vocational guidance, and securing

occupation when applicants are trained;

      (2) Assisting, when called up by the school to careers committee of the human resource

investment council, that board in its work for students who are blind or visually impaired and in

the application of federal aid;

      (3) Assisting the department of education, when called upon by it, in performing its

duties under chapter 25 of title 16;

      (4) Having general charge of the home teaching of persons who are blind or visually

impaired in the state;

      (5) Having charge of such workshops for the training of persons who are blind or

visually impaired and salesrooms for the sale of the products of the blind and visually impaired as

the director may from time to time establish; and

      (6) Performing such other duties with respect to his or her office as the director may

prescribe.

 

     40-9-17. Confidentiality of reports -- Authorized uses -- Penalty for disclosure. – (a)

All reports mentioned in section 40-9-15 are hereby declared to constitute confidential matter. It

shall be unlawful for any person to make use of or cause to be used, any information contained in

the reports for purposes not directly connected with the administration of services for people who

are blind or visually impaired or the division of motor vehicles, except with the consent of the

individual concerned.

     (b) The director of human services shall have the power to establish rules and regulations

governing the custody, use, and preservation of the reports which shall have the same force and

effect as law. The reports shall be produced in response to a subpoena duces tecum properly

issued by any federal or state court; provided, however, that the purpose for which the subpoena

is sought is directly connected with the administration of services for people who are blind or

visually impaired. No subpoena shall be issued by a court asking either for the reports, or for

persons having custody or access to the reports, unless the litigation involved in the matter is

directly connected with the administration of services for people who are blind or visually

impaired.

     (c) Any person violating any of the provisions of this section, or the lawful rules and

regulations made hereunder, shall be deemed guilty of a misdemeanor, and shall be fined not

more than two hundred dollars ($200) or shall be imprisoned for not more than six (6) months, or

both.

     (d) Nothing in this section shall be deemed to prohibit the director of the department of

human services, or his or her agents duly authorized for that purpose, from issuing any statistical

material or data, or publishing or causing the data to be published whenever he or she shall deem

it to be in the public interest.

 

     SECTION 22. Sections 40-9.1-1.1 and 40-9.1-5 of the General Laws in Chapter 40-9.1

entitled "Equal Rights of Blind and Deaf Persons to Public Facilities" are hereby amended to read

as follows:

 

     40-9.1-1.1. Definitions. -- (b)(a) "Guide dog" means a dog that has been or is being

specially trained to aid a particular blind or visually impaired person.

      (c)(b) "Hearing dog" means a dog that has been or is being specially trained to aid a

particular deaf or hard-of-hearing person.

      (d)(c) "Housing accommodations" means any real property or portion thereof that is used

or occupied, or intended, arranged or designed to be used or occupied, as the home, residence or

sleeping place of one or more human beings, but does not include any single-family residence the

occupants of which rent, lease or furnish for compensation to more than one room therein.

     (d)(a) "Personal assistance animal" means a dog that has been or is being trained as a

guide dog, hearing dog or service dog.

      (e) "Service dog" means a dog that has been or is being specially trained to aid a

particular disabled person with a disability other than sight or hearing.

 

     40-9.1-5. Family therapy pets in public places. – (a) The privileges of access and

transportation provided to personal assistance animals in section 40-9.1-2 shall be extended to

family therapy pets which are further defined as primary companions which include but are not

limited to dogs, cats, rabbits, and guinea pigs, that are working in the provision of pet assisted

therapy treatment and education.

     (b) The provisions are such that the pet assisted therapy facilitator is working in

conjunction with the family therapy pet in a predetermined medical or educational setting, with a

selected clientele. The medical interactions are to be individually planned, goal-oriented, and

treatment based, and the educational settings are to be classroom based.

     (c) Throughout the interactions, the pet assisted therapy facilitator and the family therapy

pet will abide by a set code of ethics, and will follow professional guidelines to ensure that the

actions and deeds of the pet assisted therapy facilitator reflect advocacy of profession, pets, and

clients, and other professions; while simultaneously ensuring that the interaction of the family

therapy pet and client remains beneficial and strives to enhance the quality of life through this

animal-human bond.

     (d) Prior to any interactions, the family therapy pet must first meet the immunization

criteria, a current certificate of good health, which shall be issued by a licensed, practicing

veterinarian, as well as the temperament criteria, a certificate of good temperament, which shall

be issued from a certified or practicing dog trainer or animal behaviorist, and training criteria, in

which the pet assisted therapy facilitator and the family therapy pet learn to work as a team

learning together to execute safely and effective interaction, which are accepted in the field,

specifically other pet assisted animal facilitators, veterinarians, dog trainers, animal behaviorists

and the state of Rhode Island.

     (e) Access and transportation privileges are only extended while the family therapy pet is

on the way to or actively participating in a program.

     (f) The animal assisted therapy facilitator, an individual who has successfully completed

or is in the process of completing accepted pet assisted therapy program, shall be responsible for

the control and safety of the pet, which is to include cleaning up and elimination of wastes,

keeping the pet on a proper leash and collar, carrying a smaller animal in a travel crate, adhering

to all standard rules, regulations, and laws within both the facility and the state of Rhode Island,

and upholding an active insurance policy that will cover an unforeseen mishap and/or accidental

occurrence which may result in causing property damage and/or personal injury while actively

participating in a program.

 

     SECTION 23. Section 40-11-12 of the General Laws in Chapter 40-11 entitled "Abused

and Neglected Children" is hereby amended to read as follows:

 

     40-11-12. Award of custody. -- (a) If the court shall find that a child is abused or

neglected within the meaning of this chapter, the court shall by decree duly enter process as

follows:

      (b) Place the child under the supervision of the department in his or her own home if the

court makes a determination that the child will be safely maintained in the home or award the

care, custody, and control of the child to the department upon such terms as the court shall

determine. The court may place the custody of the child in the department until such time as it

finds that the child may be returned to the parents or other person previously having custody or

care of the child under circumstances consistent with the child's safety.

     (c) The court may require the parent or person previously having custody to undertake a

program of counseling, including psychiatric evaluation and/or treatment as a prerequisite to the

return of the child to his or her custody.

     (d) When a child has been placed in the care, custody and control of the department

pursuant to the provisions of this chapter or of chapter 1 of title 14 the court shall have the power

to appoint a guardian of the person of the child.

     (e) No petition for guardianship shall be granted unless it contains the written consent of

the parent or parents previously having custody of the child and of the department of children,

youth and families.

     (f) The entry of a decree of guardianship pursuant to this section shall terminate the

award of custody to the department and the involvement of the department with the child and the

child's parents. The court may revoke a guardianship awarded pursuant to this section if the court

finds after hearing on a motion for revocation that continuation of said guardianship is not in the

best interests of the child.

     (g) Notice of any hearing on such motion shall be provided by the moving party to the

department of children, youth and families, the court appointed special advocate, the parent or

guardian and any and all other interested parties.

 

     SECTION 24. Sections 40-13.2-4.1, 40-13.2-5 and 40-13.2-5.1 of the General Laws in

Chapter 40-13.2 entitled "Certification of Child Care and Youth Serving Agency Workers" are

hereby amended to read as follows:

 

     40-13.2-4.1. Criminal records check -- Operators of youth serving agencies. – (a)

Any person seeking to operate a facility or program which is a youth serving agency shall apply

to the bureau of criminal identification of the attorney general's office for a criminal records

check. Those items of information appearing on a criminal records check which have been

determined to constitute disqualifying information by the director pursuant to section 40-13.2-4

of this chapter shall also constitute items of disqualifying information pursuant to this section.

     (b) Upon the discovery of any disqualifying information as defined in accordance with

the rule promulgated by the director, the bureau of criminal identification of the attorney general's

office will inform the applicant in writing of the nature of the disqualifying information. In

addition, the bureau of criminal identification of the attorney general's office will inform the

applicant in writing, without disclosing the nature of the disqualifying information, that an item of

disqualifying information has been discovered.

     (c) In those situations in which no disqualifying information has been found, the bureau

of criminal identification of the attorney general's office will inform the applicant in writing of

this fact.

     (d) The operator or proposed operator of the youth serving agency will maintain on file a

document issued by the bureau of criminal identification of the attorney general's office stating

that no disqualifying information has been discovered as regards the operator or proposed

operator of the youth serving agency and this document shall be made available for inspection by

the parent(s)/guardian(s) of any child enrolled in the programs of the youth serving agency. The

operator will also maintain on file, and make available for inspection by the parent(s)/guardian(s)

of any child enrolled in the programs of the youth serving agency, evidence that criminal records

checks have been obtained on all employees of the youth serving agency pursuant to section 40-

13.2-5.1, and the results of the checks.

 

     40-13.2-5. Criminal records check -- Employee of child care facilities which must be

licensed by the department. – (a) Any person seeking employment, if that employment involves

supervisory or disciplinary power over a child or children or involves routine contact with a child

or children without the presence of other employees, in any facility which is, or is required to be,

licensed or registered with the department or seeking that employment at the training school for

youth shall, after acceptance by the employer of the affidavit required by section 40-13.2-3, apply

to the bureau of criminal identification of the state police or the local police department for a

nationwide criminal records check. The check will conform to applicable federal standards

including the taking of fingerprints to identify the applicant.

     (b) Upon the discovery of any disqualifying information as defined in accordance with

the rule promulgated by the director, 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. In addition, the bureau of criminal identification of the state police or the local

police department will inform the relevant employer in writing, without disclosing the nature of

the disqualifying information, that an item of disqualifying information has been discovered.

     (c) In those situations in which no disqualifying information has been found, the bureau

of criminal identification of the state police or the local police department will inform both the

applicant and the employer in writing of this fact.

     (d) The employer will maintain on file, subject to inspection by the department, evidence

that criminal records checks have been initiated on all employees seeking employment after

August 1, 1985, and the results of the checks.

     (e) Failure to maintain that evidence on file will be prima facie grounds to revoke the

license or registration of the operator of the facility.

     (f) It will be the responsibility of the bureau of criminal identification of the state police

or the local police department to conduct the nationwide criminal records check pursuant to this

section. The nationwide criminal records check will be provided to the applicant for employment

without charge.

 

     40-13.2-5.1. Criminal records check -- Employee of youth serving agency. – (a) Any

person seeking employment, if that employment involves supervisory or disciplinary power over

a child or children or involves routine contact with a child or children without the presence of

other employees, in any facility or program which is a youth serving agency shall file with the

employer the affidavit required by section 40-13.2-3. Said affidavit shall be maintained on file by

the employer and shall be made available for inspection by the parent(s)/guardian(s) of any child

who is enrolled in the programs of the youth serving agency.

     (b) Any person seeking employment, if that employment involves supervisory or

disciplinary authority over a child or children or involves routine contact with a child or children

without the presence of other employees, in any youth serving agency, shall apply to the bureau

of criminal identification of the attorney general's office for a criminal records check.

     (c) Those items of information appearing on a criminal records check which have been

determined to constitute disqualifying information by the director pursuant to section 40-13.2-4

of this chapter shall also be items of disqualifying information pursuant to this section.

     (d) Upon the discovery of any disqualifying information as defined in accordance with

the rule promulgated by the director, the bureau of criminal identification of the attorney general's

office will inform the applicant in writing of the nature of the disqualifying information. In

addition, the bureau of criminal identification of the attorney general's office will inform the

applicant in writing, without disclosing the nature of the disqualifying information, that an item of

disqualifying information has been discovered.

     (e) In those situations in which no disqualifying information has been found, the bureau

of criminal identification of the attorney general's office will inform both the applicant and the

employer in writing of this fact. The employer will maintain on file, and make available for

inspection by the parent(s)/guardian(s) of any child enrolled in the programs of the youth serving

agency, evidence that criminal records checks have been obtained on all employees of the youth

serving agency pursuant to section 40-13.2-5.1, and the results of the checks. The criminal

records checks will be provided to the applicant for employment without charge.

 

     SECTION 25. Section 40-17-5 of the General Laws in Chapter 40-17 entitled "Support of

Homeless" is hereby amended to read as follows:

 

     40-17-5. Commission established. -- (a) There is hereby created a permanent legislative

commission to be called the "commission on the homeless" consisting of twenty (20) members:

     (1) two (2) of whom shall be from the house of representatives, not more than one from

the same political party to be appointed by the speaker, of whom two (2) may be members of the

general public appointed in lieu of legislative appointments;

     (2) two (2) of whom shall be from the senate, not more than one from the same political

party to be appointed by the president of the senate, of whom two (2) may be members of the

general public appointed in lieu of legislative appointments;

     (3) one of whom shall be representative of the general public to be appointed by the

governor;

     (4) one of whom shall be the director of the department of health or his or her designee;

     (5) one of whom shall be the director of the department of human services or his or her

designee;

     (6) one of whom shall be the director of mental health, retardation, and hospitals or his or

her designee;

     (7) one of whom shall be the director of children, youth, and families or his or her

designee;

     (8) one of whom shall be the director of the Rhode Island housing and mortgage finance

corporation or his or her designee;

     (9) one of whom shall be the mayor of the city of Providence, or his or her designee;

     (10) one of whom shall be the mayor of Warwick or his or her designee;

     (11) one of whom shall be the mayor of Woonsocket or his or her designee;

     (12) one of whom shall be the mayor of Newport or his or her designee;

     (13) two (2) of whom shall be representatives of shelters for the homeless located in the

state to be appointed by the lieutenant governor;

     (14) one of whom shall be the director of the Providence office of the United States

department of housing and urban development, or his or her designee;

     (15) one of whom shall be the executive director of the association of community mental

health centers or his or her designee;

     (16) one of whom shall be the executive director of the council on domestic violence or

his or her designee;

     (17) one of whom shall be the chairperson of the emergency food and shelter board or his

or her designee and whose purpose it shall be to identify the extent of the homeless problem in

the state to evaluate programs for the homeless developed by state and local governments and the

Providence mental health center;

      to study and make findings concerning homeless individuals and families in the state of

Rhode Island and to make recommendations to the governor and general assembly concerning

legislation and programs to assist the homeless.

      (b) Forthwith upon the passage of this chapter, the members of the commission shall

meet at the call of the governor and organize and shall select from among the members a

chairperson. Vacancies in the commission shall be filled in like manner as the original

appointment.

      (c) The membership of the commission shall receive no compensation for their services

but shall be allowed their travel and necessary expenses. The commission may engage such

clerical, technical, and other assistance as it may deem necessary, and spend such other funds as

is necessary to accomplish its purpose.

      (d) The department of human services is hereby directed to provide suitable quarters and

staff for the commission.

      (e) All departments and agencies of the state shall furnish such advice and information,

documentary, and otherwise to the commission and its agents as is deemed necessary or desirable

by the commission to facilitate the purposes of this chapter.

 

     SECTION 26. Section 40-18-4 of the General Laws in Chapter 40-18 entitled "Long

Term Home Health Care-Alternative to Placement in a Skilled Nursing or Intermediate Care

Facility" is hereby amended to read as follows:

 

     40-18-4. Payment for long term home health care programs. -- (a) When a long term

home health care program as defined under this chapter is available, the department of human

services, before authorizing care in a nursing home or intermediate care facility for a person

eligible to receive services under this title, shall notify the person in writing of the provisions of

this chapter.

      (b)(1) If a hospitalized person eligible to receive services under the provisions of this

title who requires care, treatment, maintenance, nursing, or other services in a nursing home

desires to return to his or her own home or the home of a responsible relative or other responsible

adult if the necessary services are provided, that person or his or her representative shall so

inform the department of human services.

     (2) If a home health care program as defined under this chapter is provided, the

department of human services shall authorize an assessment and if the results of the assessment

indicate that the person can receive the appropriate level of care at home, the official shall prepare

for that person a plan for the provision of services comparable to those that would be rendered in

a nursing home. In developing the plan, the department shall consult with those persons

performing the assessment. The services shall be provided by certified home health agencies,

home health aide/homemaker agencies, and adult day care centers.

     (3)(i) At the time of the initial assessment, and at the time of each subsequent assessment,

the official shall establish a monthly budget in accordance with which he or she shall authorize

payment for the services provided under the plan. Total monthly expenditures made under this

title for that person shall not exceed a maximum of one hundred percent (100%), of the average

of the monthly rates payable for skilled nursing/intermediate care facility service as provided for

in the department of human services.

     (ii) Principles of reimbursement for skilled nursing/intermediate care facility services

provided eligible receipts of the medical assistance program. If an assessment of the person's

needs demonstrates that he or she requires services the payment for which would exceed the

monthly maximum, but it can be reasonably anticipated that total expenditures for required

services for that person will not exceed the maximum calculated over a one year period, the

department of human services may authorize payment for those services.

      (c) Notwithstanding any inconsistent provision of law but subject to expenditure

limitations of this chapter, the director subject to the approval of the state director of the budget,

may authorize the utilization of medical assistance funds to pay for services provided by specified

home health care persons in addition to those services included in the medical assistance program

under chapter 18 of this title, so long as federal financial participation is available for those

services. Expenditures made under this subdivision shall be deemed payments for medical

assistance for needy persons.

      (d) The department shall not make payments pursuant to title XIX of the federal Social

Security Act, 42 U.S.C. section 1396 et seq., for benefits available under title XVIII, 42 U.S.C.

section 1395 et seq., of such act without documentation that title XVIII claims have been filed

and denied.

      (e) The department shall not make payment for a person receiving a long term home

health care program while payments are being made for that person for inpatient care in a skilled

nursing and intermediate care facility or hospital.

 

     SECTION 27. Section 40.1-1-12 of the General Laws in Chapter 40.1-1 entitled

"Department of Mental Health, Retardation, and Hospitals" is hereby amended to read as follows:

 

     40.1-1-12. Permanent legislative oversight commission. – (a) There is hereby created a

permanent legislative commission entitled "permanent legislative oversight commission on

substance abuse treatment" the purpose of which shall be to oversee the implementation and

administration of all money and programs in substance abuse treatment in the state and to report

to the general assembly with advice and recommendations as to the adequacy, efficacy and

efficiency of all statutes, rules, regulations, guidelines, practices, and programs relating to

substance abuse treatment and such other related matters as it deems appropriate.

     (b) The commission shall consist of ten (10) members; five (5) members shall be

appointed by the speaker of the house of representatives from among the members of the house of

representatives, not more than four (4) of whom shall be from the same political party; three (3)

members shall be appointed by the president of the senate from among the members of the senate,

not more than two (2) of whom shall be from the same political party, and one member (ex

officio) shall be the director of MHRH or his or her designee, and one member shall be the

director of the department of health in the executive department or his or her designee. The

chairperson of the commission shall be appointed by the speaker of the house of representatives.

Members of the commission shall serve without compensation, except that they shall be allowed

their actual and necessary expenses incurred in the performance of their duties under this section.

     (c) The commission may request and shall receive from any instrumentality of the state,

including the division of substance abuse of the department of mental health, retardation, and

hospitals, the department of health in the executive department, department for children, youth,

and families, department of human services and other departments as the commission sees fit and

from any municipality or any instrumentality thereof, such information and assistance as it deems

necessary for the proper execution of its powers and duties under this section.

     (d) The commission shall meet at least quarterly and shall report at least annually to the

general assembly on its findings and recommendations with respect to:

      (1) All existing substance abuse treatment programs; and

      (2) Any matters relating to substance abuse treatment efforts in the state.

 

     SECTION 28. Section 40.1-5-2 of the General Laws in Chapter 40.1-5 entitled "Mental

Health Law" is hereby amended to read as follows:

 

     40.1-5-2. Definitions. -- Whenever used in this chapter, or in any order, rule, or

regulation made or promulgated pursuant to this chapter, or in any printed forms prepared by the

department or the director, unless otherwise expressly stated, or unless the context or subject

matter otherwise requires:

      (1) "Alternatives to admission or certification" means alternatives to a particular facility

or treatment program, and shall include, but not be limited to, voluntary or court-ordered

outpatient treatment, day treatment in a hospital, night treatment in a hospital, placement in the

custody of a friend or relative, placement in a nursing home, referral to a community mental

health clinic and home health aide services, or any other services that may be deemed

appropriate.

      (2) "Care and treatment" means psychiatric care, together with such medical, nursing,

psychological, social, rehabilitative, and maintenance services as may be required by a patient in

association with the psychiatric care provided pursuant to an individualized treatment plan

recorded in the patient's medical record.

      (3) "Department" means the state department of mental health, retardation, and hospitals.

      (4) "Director" means the director of the state department of mental health, retardation,

and hospitals.

      (5) "Facility" means a state hospital or psychiatric inpatient facility in the department, a

psychiatric inpatient facility maintained by a political subdivision of the state for the care and/or

treatment of the mentally disabled, a general or specialized hospital maintaining staff and

facilities for such purpose, any of the several community mental health services established

pursuant to chapter 8.5 of this title, and any other facility within the state providing inpatient

psychiatric care and/or treatment and approved by the director upon application of this facility.

Included within this definition shall be all hospitals, institutions, facilities, and services under the

control and direction of the director and the department, as provided in this chapter. Nothing

contained herein shall be construed to amend or repeal any of the provisions of chapter 16 of title

23.

      (6) "Indigent person" means a person who has not sufficient property or income to

support himself or herself, and to support the members of his or her family dependent upon him

or her for support, and/or is unable to pay the fees and costs incurred pursuant to any legal

proceedings conducted under the provisions of this chapter.

      (7) (i) "Likelihood of serious harm" means:

      (A)(i) A substantial risk of physical harm to the person himself or herself as manifested

by behavior evidencing serious threats of, or attempts at, suicide,

      (B)(ii) A substantial risk of physical harm to other persons as manifested by behavior or

threats evidencing homicidal or other violent behavior, or

      (C)(iii) A substantial risk of physical harm to the mentally disabled person as manifested

by behavior which has created a grave, clear, and present risk to his or her physical health and

safety.

      (ii)(iv) In determining whether there exists a likelihood of serious harm the physician

and the court may consider previous acts, diagnosis, words or thoughts of the patient. If a patient

has been incarcerated, or institutionalized, or in a controlled environment of any kind, the court

may give great weight to such prior acts, diagnosis, words, or thoughts.

      (8) "Mental disability" means a mental disorder in which the capacity of a person to

exercise self control or judgment in the conduct of his or her affairs and social relations, or to care

for his or her own personal needs, is significantly impaired.

      (9) "Mental health professional" means a psychiatrist, psychologist, or social worker and

such other persons, including psychiatric nurse clinicians, as may be defined by rules and

regulations promulgated by the director.

      (10) "Patient" means a person certified or admitted to a facility according to the

provisions of this chapter.

      (11) "Physician" means a person duly licensed to practice medicine or osteopathy in this

state.

      (12) "Psychiatric nurse clinician" means a licensed professional registered nurse with a

master's degree in psychiatric nursing or related field who is currently working in the mental

health field as defined by the American nurses association.

      (13) "Psychiatrist" means a person duly licensed to practice medicine or osteopathy in

this state who has in addition completed three (3) years of graduate psychiatric training in a

program approved by the American medical association or American osteopathic association.

      (14) "Psychologist" means a person certified pursuant to chapter 44 of title 5.

      (15) "Social worker" means a person with a masters or further advanced degree from a

school of social work which is accredited by the council of social work education.

 

     SECTION 29. Section 40.1-8-1 of the General Laws in Chapter 40.1-8 entitled

"Governor's Committee on Mental Retardation" is hereby amended to read as follows:

 

     40.1-8-1. Creation -- Members. – (a) There is hereby created a fourteen (14) member

permanent committee to be known as the "Governor's Committee on Mental Retardation,"

hereinafter referred to as the committee;

     (1) six (6) of whom shall be representatives of non-governmental organizations or groups

concerned with education, employment, rehabilitation, welfare, and health, to be appointed by the

governor;

     (2) six (6) of whom shall be representatives of consumers who are mentally retarded; ,of

this group, three (3) of whom shall be selected from a list of nominees submitted by the RI ARC,

to be appointed by the governor;

     (3) one of whom shall be from the house of representatives to be appointed by the

speaker; and

     (4) one of whom shall be from the senate to be appointed by the president of the senate.

     (b) The assistant director for developmental disabilities within the department of mental

health, retardation, and hospitals shall serve as an ex officio member but shall not be eligible to

vote.

     (c) No employee of any state agency or institution engaged in the care or training of

persons who are mentally retarded shall be eligible for appointment to the committee.

 

     SECTION 30. Section 40.1-21-4 of the General Laws in Chapter 40.1-21 entitled

"Division of Developmental Disabilities" is hereby amended to read as follows:

 

     40.1-21-4. Powers and duties of director of mental health, retardation and hospitals.

(a) The director of mental health, retardation, and hospitals shall be responsible for planning

and developing a complete, comprehensive, and integrated statewide program for the

developmentally disabled for the implementation of the program; and for the coordination of the

efforts of the department of mental health, retardation, and hospitals with those of other state

departments and agencies, municipal governments as well as the federal government and private

agencies concerned with and providing services for the developmentally disabled.

     (b) The director shall be responsible for the administration and operation of all state

operated community and residential facilities established for the diagnosis, care, and training of

the developmentally disabled. The director shall be responsible for establishing standards in

conformance with generally accepted professional thought and for providing technical assistance

to all state supported and licensed habilitative, developmental, residential and other facilities for

the developmentally disabled, and exercise the requisite surveillance and inspection to insure

compliance with standards. Provided, however, that none of the foregoing shall be applicable to

any of the facilities wholly within the control of any other department of state government.

     (c) The director of mental health, retardation, and hospitals shall stimulate research by

public and private agencies, institutions of higher learning, and hospitals, in the interest of the

elimination and amelioration of developmental disabilities, and care and training of the

developmentally disabled.

     (d) The director shall be responsible for the development of criteria as to the eligibility

for admittance of any developmentally disabled person for residential care in any department

supported and licensed residential facility or agency.

     (e) The director of mental health, retardation, and hospitals may transfer retarded persons

from one state residential facility to another when deemed necessary or desirable for their better

care and welfare.

     (f) The director of mental health, retardation, and hospitals shall make grants-in aid and

otherwise provide financial assistance to the various communities and private nonprofit agencies,

in amounts which will enable all developmentally disabled adults to receive developmental and

other services appropriate to their individual needs.

     (g) The director shall coordinate all planning for the construction of facilities for the

developmentally disabled, and the expenditure of funds appropriated or otherwise made available

to the state for this purpose.

 

     SECTION 31. Section 40.1-24-7 of the General Laws in Chapter 40.1-24 entitled

"Licensing of Facilities and Programs for People who are Mentally Ill and/or Developmentally

Disabled" is hereby amended to read as follows:

 

     40.1-24-7. Denial, suspension, or revocation of license. – (a) The department, 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 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 the applicant

or licensee shall be given an opportunity for a prompt and fair hearing.

     (b) On the basis of any hearing, or upon default of the applicant or licensee, the

department shall make a determination specifying its findings of fact and conclusions 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 day period, appeals the decision to the superior court, pursuant to section 40.1-

24-8. The procedure governing hearings authorized by this section shall be in accordance with

rules promulgated by the department.

     (c) 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 section 40.1-24-8.

A copy or copies of the transcript may be obtained by any interested party on payment of the cost

of preparing the copy or copies. Witnesses may be subpoenaed by either party.

 

     SECTION 32. Section 40.1-27-2 of the General Laws in Chapter 40.1-27 entitled

"Penalties for Abuse of Persons with Developmental Disabilities" is hereby amended to read as

follows:

 

     40.1-27-2. Duty to report. – (a) Any person within the scope of their employment at a

program or in their professional capacity who has knowledge of or reasonable cause to believe

that a participant in a program has been abused, mistreated or neglected shall make, within

twenty-four (24) hours or by the end of the next business day, a written report to the director of

the department of mental health, retardation, and hospitals or his or her designee. The report shall

contain:

      (1) The name, address, telephone number, occupation, and employer's address and the

phone number of the person reporting;

      (2) The name and address of the participant who is believed to be the victim of the

abuse, mistreatment, or neglect;

      (3) The details, observations, and beliefs concerning the incident(s);

      (4) Any statements regarding the incident made by the participant and to whom they

were made;

      (5) The date, time, and place of the incident;

      (6) The name of any individual(s) believed to have knowledge of the incident; and

      (7) The name of any individual(s) believed to have been responsible for the incident.

      (b) In addition to those persons required to report pursuant to this section, any other

person may make a report if that person has reasonable cause to believe that a participant has

been abused, mistreated, or neglected.

 

     SECTION 33. Section 40.1-29-3 of the General Laws in Chapter 40.1-29 entitled

"Governor's Council on Behavioral Health" is hereby amended to read as follows:

 

     40.1-29-3. Members. -- (a) The council shall consist of twenty-six (26) members.

     (1) There shall be four (4) members of the legislature, two (2) shall be from the senate

and shall be appointed by the lieutenant governor to serve for their legislative term, one from

each of the major political parties, and two (2) shall be from the house of representatives and shall

be appointed by the speaker to serve for their legislative term, one from each of the two (2) major

political parties.

     (2) The nonlegislative members shall be the executive director of the drug and alcohol

treatment association, the executive director of the council of community mental health

organizations, the mental health advocate, and a representative of the AFL-CIO to be appointed

by the governor.

     (3) The remaining eighteen (18) public members shall be appointed by and serve at the

pleasure of the governor and shall represent such community interests as substance abuse

treatment and prevention professionals, consumers of substance abuse programs and their

families, mental health treatment professionals, adult and elderly consumers of mental health

services and their families, families of children who are consumers of mental health and

substance abuse services, the judiciary, criminal justice officials and local government officials.

     (4) Not less than fifty (50%) percent of the public members shall be individuals who are

not state employees or providers of behavioral health services.

     (5) There shall be sufficient representation by the families of children who are consumers

of mental health and substance abuse services in order to ensure adequate representation of such

children.

     (6) Every effort shall be made to ensure that appointed members represent the cultural

diversity of the state.

     (7) All members shall have demonstrable expertise in, or experience with substance

abuse or mental health services in Rhode Island. In addition, the directors or their designees of the

departments of children, youth and families; corrections; education; health; human services;

elderly affairs and mental health, retardation and hospitals; the attorney general or designee and

the executive director of the governor's justice commission shall serve as ex officio and without a

vote as members of the council.

      (b) Any vacancy which may occur in the council shall be filled in the same manner as

the original appointments.

      (c) The governor shall designate one member as the chairperson of the council.

 

     SECTION 34. Section 41-2-5 of the General Laws in Chapter 41-2 entitled "Racing and

Athletic Hearing Board" is hereby amended to read as follows:

 

     41-2-5. Subpoena powers of board -- Rules and regulations. – (a) The members of the

racing and athletics hearing board are hereby severally authorized and empowered to administer

oaths; and the board, in all cases of every nature pending before it, is hereby authorized and

empowered to summon and examine witnesses and to compel the production and examination of

papers, books, accounts, documents, records, certificates, and other legal evidence that may be

necessary or proper for the determination and decision of any question before or the discharge of

any duty required by law of the board.

     (b) All subpoenas and subpoenas duces tecum shall be signed by the chairperson or, in

the absence or disqualification of the chairperson, by any other member thereof, and shall be

served as subpoenas are now served in civil cases in the superior court; and witnesses so

subpoenaed shall be entitled to the same fees for attendance and travel as are now provided for

witnesses in civil cases in the superior court. If any person fails to obey the command of any

subpoena, without reasonable cause, or if a person in attendance before the board shall, without

reasonable cause, refuse to be sworn, or to be examined, or to answer a legal and pertinent

question, the board may apply to any justice of the superior court, upon proof by affidavit of the

fact, for a rule or order returnable in not less than two (2) or more than five (5) days, directing the

person to show cause why he or she should not be adjudged in contempt.

     (c) Upon the return of an order, the justice before whom the matter is brought for a

hearing shall examine under oath the person and the person shall be given an opportunity to be

heard, and if the justice shall determine that the person has refused without reasonable cause or

legal excuse to be examined, or to answer a legal and pertinent question, or to produce books,

accounts, papers, records, and documents, material to the issue, which he or she was ordered to

bring or produce, he or she may forthwith commit the person to the adult correctional institutions,

there to remain until he or she submits to do the act which he was so required to do, or is

discharged according to law.

     (d) The board shall have power to adopt reasonable rules and regulations governing the

procedure to be followed in any matter that may come before it for hearing.

 

     SECTION 35. Section 41-3-4 of the General Laws in Chapter 41-3 entitled "Horse

Racing" is hereby amended to read as follows:

 

     41-3-4. Application for license -- Action by division. – (a) Any person, association, or

corporation desiring to conduct horse racing within this state shall apply to the division of racing

and athletics for a license on forms provided by the division. The application shall specify the

days on which horse racing is to be conducted, the location of the horse racing, and such other

information as may be required by the division.

     (b) The division may also require any person, association, or corporation to give

information as to financial standing and credit. The division shall have the right to reject any

applications for a license for any cause which it may deem sufficient, and the action of the

division both as to the license and the date or award shall be final, subject to the right of appeal

provided by chapter 2 of this title.

     (c) The division shall, as far as practicable, avoid conflicts in the dates assigned or

awarded for horse racing in the state.

     

     SECTION 36. Section 41-4-4.1 of the General Laws in Chapter 41-4 entitled "Mutuel

Betting and License Fees" is hereby amended to read as follows:

 

     41-4-4.1. Support of racing division activities -- Tax. -- (a) Notwithstanding the

provisions of section 41-4-3 or section 41-3.1-6 each licensee conducting racing events under the

pari-mutuel system shall collect an additional five percent (5%) of all money wagered on the

multiple pools at racing tracks. Multiple pools shall be defined as all forms of wagering other

than win, place, and show. This five percent (5%) tax shall be over and above the schedule of

taxes as set forth in section 41-4-3, and shall be distributed as follows:

      (1) One and one half percent (1.5%) shall be paid to the department of business

regulation and these proceeds shall be deposited as general revenue.

      (2) Effective January 1, 1990, one One half of one percent (.5%) shall be paid to owners

of dog kennels who are under contract with a licensee who shall distribute funds to the owners of

dog kennels in a manner consistent with the generally accepted distribution of dog kennel owners'

purses subject to an annual audit by the auditor general or his or her designee.

      (3) One and one half percent (1.5%) shall be paid to the licensee provided that there is at

least three hundred forty (340) scheduled performances during the calendar year.

      (4) One and one half percent (1.5%) shall be paid to the state and revert to the general

fund.

      (b) Notwithstanding the provisions of section 41-3.1-6 each licensee conducting racing

events under the pari-mutuel system shall collect an additional four percent (4%) of all moneys

wagered on so called straight (win, place, or show) wagering. This four percent (4%) tax shall be

over and above the schedule of taxes as set forth in section 41-3.1-6, and shall be distributed as

follows:

      (1) One percent (1%) shall be paid to the town of Lincoln; and

      (2) One percent (1%) shall be paid to owners of dog kennels who are under contract with

a licensee who shall distribute funds to the owners of dog kennels in a manner consistent with the

generally accepted distribution of dog kennel owners' purses subject to an annual audit by the

auditor general or his or her designee.

      (3) Two percent (2%) shall be paid to the state and revert to the general fund.

 

     SECTION 37. Sections 41-5-3.6 and 41-5-11 of the General Laws in Chapter 41-5

entitled "Boxing and Wrestling" are hereby amended to read as follows:

 

     41-5-3.6. Substitutions. – (a) No substitution of boxers may be made within twenty-three

(23) hours of the starting time for the first event in the boxing or sparring match or exhibition. If

one or more of the boxers listed on the licensee's application fails to appear for his or her

examination in the office of the division of racing and athletics as prescribed in section 41-5-11,

or to enter the ring and perform, and substitution is not permitted under this section or any other

section of this chapter, the contest or contests in which the boxer or boxers were to appear shall

be cancelled and notice of the cancellation shall be made to the public at the earliest practicable

time.

     (b) Any person who paid an admission fee prior to the making of the notice shall, at his

or her election, be entitled to an immediate refund of the admission fee unless the principal draw

in the match or exhibition appeared and performed prior to the making of the notice.

 

     41-5-11. Physician and first aid instructor or licensed practical nurse in attendance

-- Examination of participants before match. – (a) At any boxing or sparring match or

exhibition there shall be in attendance, at ringside, a duly licensed physician, whose duty it shall

be to observe the physical condition of the boxers and to advise the referee or judges with regard

thereto, and a duly licensed first aid instructor, or licensed practical nurse whose duty it shall be

to assist the physician and to render such aid to boxers as circumstances may require. Any

competent physician who has had not less than three (3) years' experience as a medical

practitioner may be licensed. Any person holding a valid certification as a first aid instructor

issued by any state chapter of the American red cross association and who is competent as such

may be licensed.

     (b) The fee for the physician in attendance and the first aid instructor in attendance, shall

be fixed by the division of racing and athletics, and shall be paid by the licensee conducting the

match or exhibition. The fees shall be tendered to the division at the time the license for the

match or exhibition is issued under section 41-5-1, to be held by the division in escrow until the

services are rendered.

     (c) No boxer shall be permitted to box unless, not more than three (3) hours before, a

physician, licensed under this chapter, shall certify in writing that the boxer is physically fit to

engage in the proposed contest. The certification shall be based in part on an examination of the

boxer by a duly licensed physician in the office of the division on the morning of the match or

exhibition or at least six (6) hours before the boxer is scheduled to enter the ring, whichever is

earlier. The physician's fee, as fixed by the division, shall be paid by the licensee conducting the

match or exhibition prior to the issuance of the certification by the physician. In the event that a

boxer cannot be certified as physically fit to engage in the proposed contest, then such fact shall

be made known to the public prior to the acceptance of an admission fee or the tender of an

admission ticket for the match or exhibition. Any person who pays an admission fee prior to the

disclosure that the boxer is not certified as physically fit shall, at his or her election, be entitled to

an immediate refund of the admission fee. The examinations required by this section shall include

an examination of the boxer's vision and eye condition.

 

     SECTION 38. Sections 41-9-1 and 41-9-4 of the General Laws in Chapter 41-9 entitled

"Establishment and Extension of Gambling Activities and Other Facilities" are hereby amended

to read as follows:

 

     41-9-1. "Gambling" and "gambling facilities" defined. – (a) As used in this chapter,

the term "gambling" shall include but not be limited to horseracing, dog racing, and jai alai;

however, casino gaming shall be governed by the provisions of chapter 9.1 of title 41. The term

"gambling facility" as used in this chapter means a building or enclosure in which any gambling

activity including but not limited to the foregoing is played or conducted.

     (b) The term "gambling facility" shall also include any building, enclosure or other

improvement designed, constructed, or used in connection with an overall plan or project

involving the establishment of any gambling activity; provided, however, that this sentence shall

not apply to any gambling facility licensed prior to [July 3, 1998].

 

     41-9-4. Town and state election on establishment of facility. -- (a) Before a gambling

facility shall be established in any town or city, the town council of the town or the city council of

the city shall comply with the following procedure. Upon receipt of a resolution from the town

council of the town or the city council of the city, for a referendum to establish a gambling

facility and/or activity, the general assembly shall determine, by passage of an act, whether to

allow a referendum on the establishment of the gambling facility and/or activity.

      Upon passage of an act to allow a referendum for the establishment of the gambling

facility and/or activity, the town council of the town or the city council of the city shall pose, by

adopting a resolution to be placed on the ballot at the next general election to be submitted to the

qualified electors of the town or city and to the qualified electors of the state, the following

question: "Shall a gambling facility and/or activity be established in the town (or city) of

__________________?"

      (b) The question shall be submitted by the local board of canvassers to the electors of the

town or city where the facility or activity is to be located, and the results of the election shall be

certified to the secretary of state.

      (c) The question shall be submitted by the secretary of state to the qualified electors of

the state at the same general election and the secretary of state shall certify the election results.

      (d) The affirmative vote of the subject town or city and the electors of the state shall be

necessary for the approval of the question, and if consent be thus given, all rules and regulations

shall be promulgated in accordance with the authority conferred upon the general assembly in R.I.

Const., Art. VI, Sec. XV.

      (e) The question of the establishment of a harness racing facility in the town of

Burrillville shall be submitted to the electors of the state and the town at the November, 1990

general election.

 

     SECTION 39. Sections 42-64-13.1 and 42-64-28 of the General Laws in Chapter 42-64

entitled "Rhode Island Economic Development Corporation" are hereby amended to read as

follows:

 

     42-64-13.1. Assistance to urban communities for economic revitalization. -- (a) The

corporation shall, in furtherance of its responsibility to assist urban communities, provide for the

establishment of an urban enterprise equity fund, the establishment of an urban business

incubator, and such other programs and activities as the corporation may deem appropriate to

assist with urban revitalization.

      (b) For purposes of this section, the following words and terms shall have the following

meanings:

      (1) The "Fund" shall mean a revolving loan fund used to provide equity to assist start-up

and existing businesses in securing resources from lenders including but not limited to private

sector lending institutions, and federal and non-federal public sector lenders.

      (2) "Equity" shall mean cash or cash equivalents, through personal or other assets that

are either pledged to or become part of a small business venture. Equity constitutes resources that

are considered part of the balance sheet of the small business.

      (3) "Equity Financing" shall be a loan from an institution, bank, non-bank or any other

resource, by which terms and conditions are established for repayment of the debt. For the

purposes of this legislation, "Equity Financing" shall be deeply subordinated on the balance sheet

of the business, and by this deep subordination is converted to equity on the balance sheet.

"Equity Financing" by virtue of its subordination shall be the last loan to be paid out of the cash

flow of the business.

      (4) "Small business" shall mean any corporation, partnership, sole proprietorship, or

other business entity qualifying as "small" under the standards contained in 13 CFR section 121.

      (5) "Urban" shall mean any community which exceeds two thousand (2000) persons per

square mile as established by the most recent federal census.

      (c) Establishment of an Urban Enterprise Equity Fund.

      (1) In order to provide "Equity Financing", commonly referred to as either "Equity" or

"Equity Debt", to assist small businesses finance investments, the general assembly establishes

the urban enterprise fund.

      This fund will be located at and administered by the economic development corporation,

referred to as the corporation, hereinafter for the purposes of providing equity financing to assist

small businesses in obtaining additional resources for capital investments. Seventy-five percent

(75%) of the fund financing shall be targeted to urban small businesses located in enterprise

zones established pursuant to chapter 64.3 of title 42. The corporation shall be responsible for the

establishment of "the urban enterprise fund" and for the adoption of rules and standards and

guidelines, eligibility qualifications, and performance measures for the fund. Such rules shall

limit the amount of equity financing from the fund in any small business to an amount not to

exceed one hundred thousand ($100,000) dollars and shall provide, inter alia that the corporation

be allowed to take stock, stock options, stock warrants, equity or other ownership interests in the

small business to which it is providing such Equity Financing.

      (2) Nothing herein provided with regard to equity and Equity Financing shall be deemed

to prevent or restrict the corporation or other private lenders form from providing additional

financing to the small business under traditional methods, conventional financing with or without

credit enhancements for the purposes of fulfilling the necessary instruments to finance the small

business.

      (3) In the implementation of the provisions of this paragraph, the corporation is

encouraged to utilize credit enhancements such as the US Small Business Administration's (SBA)

Guaranteed Loan Program in conjunction with SBA's participating lenders to make the small

business financing transactions in the best interest of the Small Business.

      (4) The corporation will annually report the status and performance of the Urban

Enterprise Equity Fund to the General Assembly on or before the first Tuesday of November.

      (d) Establishment of an Urban Business Incubator. - There is hereby authorized,

established, and created an urban business incubator to be located in an enterprise zone, as

defined in chapter 64.3 of this title. The incubator shall be designed to foster the growth of

businesses through a multi-tenant, mixed-use facility serving companies in a variety of industries

including, but not limited to: services, distribution, light manufacturing, or technology-based

businesses. The incubator shall provide a range of services designed to assist these new

businesses, including, but not limited to: flexible leases, shared office equipment, use of common

areas such as conference rooms, and will provide (directly or indirectly) easily accessible

business management, training, financial, legal, accounting, and marketing services.

      The incubator shall be established as a non-business corporation, and shall have tax

exempt status under U.S. Internal Revenue Code section 501(c)(3), 26 U.S.C. section 501(c)(3),

and shall have an independent board of directors. The board of directors, in consultation with the

corporations, shall adopt guidelines and performance measures for the purposes of operating and

monitoring the incubator.

      (e) The general assembly shall annually appropriate the sums it deems necessary to carry

out the provisions of subsections (c) and (d) of this section.

 

     42-64-28. Annual financial reports and performance report. -- The board shall

approve and the corporation shall submit to the governor, the president of the senate, the speaker

of the house of representatives, and the secretary of state, within eleven (11) months after the

close of its fiscal year, complete and detailed financial reports and a performance report. These

reports shall cover the corporation and its subsidiaries and shall be posted electronically on the

general assembly and the secretary of state's websites as prescribed in section 42-20-8.1.

      (a) The financial reports shall set forth the corporation's:

      (1) operations;

      (2) receipts and expenditures during the fiscal year in accordance with the categories and

classifications established by the corporation for its operating and capital outlay purposes

including a listing of all private consultants engaged by the corporation on a contract basis and a

statement of the total amount paid to each private consultant, a listing of any staff supported by

these funds, and a summary of any clerical, administrative or technical support received;

      (3) assets and liabilities at the end of its fiscal year including a schedule of its leases and

mortgages and the status of the reserve, special or other funds; and

      (4) schedule of the bonds and notes outstanding at the end of its fiscal year together with

a statement of amounts redeemed and incurred during the fiscal year.

      (5) The reports shall be prepared by independent certified public accountants in

accordance with generally accepted principles of accounting.

      (b) The performance report shall include:

      (1) a summary of performance during the previous fiscal year including

accomplishments, shortcomings in general and relative to plan, and actions to be taken to remedy

such shortcomings;

      (2) for all board meetings and public hearings held by the corporation: the subjects

addressed, decisions rendered, actions considered and their disposition; and, the minutes of these

meetings and hearings if requested by the governor, the president of the senate, the speaker of the

house of representatives, or the secretary of state;

      (3) rules or regulations promulgated by the board or corporation, a summary of studies

conducted, policies and plans developed, approved, or modified, and programs administered,

initiated or terminated;

      (4) a synopsis of hearings, complaints, suspensions, or other legal matters related to the

authority of the board or corporation;

      (5) a summary of any training courses held pursuant to subdivision 42-64-8(a)(5)(4);

      (6) a briefing on anticipated plans and activities in the upcoming fiscal year; and findings

and recommendations for improvements.

      (c) The director of the department of administration shall be responsible for the

enforcement of the provisions of this section.

 

     SECTION 40. Section 42-64.1-5 of the General Laws in Chapter 42-64.1 entitled

"Economic Development Assistance" is hereby amended to read as follows:

 

     42-64.1-5. Economic development assistance fund. -- (a) The proceeds of the bonds

described in part I of this chapter P.L. 1979, chapter 157 shall be deposited by the economic

development corporation in a special account to be designated "Rhode Island economic

development assistance fund of 1979" (the "bond fund") to be used from time to time to pay the

costs of acquiring land and facilities thereon and carrying out economic development project

plans for the development of those sites for sale or lease to, and use by private industry or

business, or to discharge any indebtedness incurred by the economic development corporation in

connection with any of the foregoing activities.

      (b) Payments received by the economic development corporation as lease rentals or the

purchase price of the land and improvements shall be deposited in the bond fund and used by the

economic development corporation from time to time, on a revolving basis to pay the expenses of

the lease or sale of the land and improvements, to acquire additional land and improvements, to

be developed for sale or lease in the same manner and to the same extent as described above, or to

discharge indebtedness incurred by the Rhode Island economic development corporation in

connection with the acquisition of land and improvements for development for sale or lease in

accordance with the provisions hereof.

      (c) All moneys in the bond fund, whether proceeds from the sale of bonds or notes

described in part I of this act P.L. 1979, chapter 157, or revenues, receipts, or income from the

sale or lease of projects, or investment income shall be trust funds to be used and applied solely

as provided in this chapter, the Rhode Island Economic Development Corporation Act, chapter 64

of this title, and in the proceedings of the economic development corporation taken pursuant

thereto, and shall not be pledged, assigned, hypothecated, or otherwise encumbered for any other

purpose whatsoever.

      (d) Upon determination by the economic development corporation that the continued

operation of the bond fund is no longer feasible, or upon termination of the existence of the

economic development corporation, all moneys in the bond fund and rights relating thereto, and

all properties acquired with the proceeds, shall pass to and be vested in the state.

      (e) In connection therewith, the operation of the bond fund, including the investment and

reinvestment of moneys therein, the disposition of moneys for carrying out economic

development projects, and the sale or lease of land and improvements to industrial and business

users, shall be governed by the proceedings of the economic development corporation pursuant to

the provisions of the Rhode Island Economic Development Corporation Act, chapter 64 of this

title. In this regard powers granted to the economic development corporation by this chapter shall

be regarded as supplemental and in addition to the powers conferred by other laws, including, but

not limited to, the Rhode Island Economic Development Corporation Act, chapter 64 of this title.

 

     SECTION 41. Section 42-64.5-2 of the General Laws in Chapter 42-64.5 entitled "Jobs

Development Act" is hereby amended to read as follows:

 

     42-64.5-2. Definitions. -- As used in this chapter, unless the context clearly indicates

otherwise:

      (1) "Adjusted current employment" means, for any taxable year ending on or after July 1,

1995, the aggregate of the average daily number of full-time equivalent active employees

employed within the State by an eligible company and its eligible subsidiaries during each taxable

year.

      (2) "Affiliated entity" means any corporation owned or controlled by the same persons or

shareholders who own or control an eligible company.

      (3) "Base employment" means, except as otherwise provided in section 42-64.5-7, the

aggregate number of full-time equivalent active employees employed within the State by an

eligible company and its eligible subsidiaries on July 1, 1994, or at the election of the eligible

company, on an alternative date as provided by section 42-64.5-5. In the case of a manufacturing

company which is ruined by disaster, the aggregate number of full time equivalent active

employees employed at the destroyed facility would be zero, under which circumstance the base

employment date shall be July 1 of the calendar year in which the disaster occurred. Only one

base employment period can be elected for purposes of a rate reduction by an eligible company.

      (4) "Disaster" means an occurrence, natural or otherwise, which results in the destruction

of sixty percent (60%) or more of an operating manufacturing business facility in this state,

thereby making the production of products by the eligible company impossible and as a result

active employees of the facility are without employment in that facility. However, disaster does

not include any damage resulting from the willful act of the owner(s) of the manufacturing

business facility.

      (6)(5) "Eligible company" means any corporation, state bank, federal savings bank, trust

company, national banking association, bank holding company, loan and investment company,

mutual savings bank, credit union, building and loan association, insurance company, investment

company, broker-dealer company, manufacturing company, telecommunications company or

surety company or an eligible subsidiary of any of the foregoing. An eligible company does not

have to be in existance existence, be qualified to do business in the state or have any employees

in this state at the time its base employment is determined.

     (5)(6) "Eligible subsidiary" means each corporation 80% or more of the outstanding

common stock of which is owned by an eligible company.

      (7) "Full time equivalent active employee" means any employee of an eligible company

who: (1) works a minimum of 30 hours per week within the State, or two (2) or more part-time

employees whose combined weekly hours equal or exceed 30 hours per week within the State;

and (2) earns no less than 150% of the hourly minimum wage prescribed by Rhode Island law;

provided, however, for tax years ending after the later of July 1, 2003 and the first tax year that an

eligible company qualifies for a rate reduction pursuant to section 42-64.5-3, for purposes of this

section, one hundred fifty percent (150%) of the hourly minimum wage prescribed by Rhode

Island law shall mean one hundred fifty percent (150%) of the hourly minimum wage prescribed

by Rhode Island law at (a) the time the employee was first treated as a full-time equivalent active

employee during a tax year that the eligible company qualified for a rate reduction pursuant to

section 42-64.5-3, or, if later, (b) the time the employee first earned at least one hundred fifty

percent (150%) of the hourly minimum wage prescribed by Rhode Island law as an employee of

the eligible company.

     (15)(8) "Initial new employment level" means the number of units of new employment

reported by an eligible company in 1997, or, if applicable, the third taxable year following the

base employment period election set forth in section 42-64.5-5.

      (8)(9) (i) "New employment" means for each taxable year the amount of adjusted current

employment for each taxable year minus the amount of base employment, but in no event less

than zero; provided, however, no eligible company is permitted to transfer, assign or hire

employees who are already employed within the State by such eligible company from itself or

any affiliated entity or utilize any other artifice or device for the purpose of artificially creating

new employees in order to qualify for the rate reduction provided for in this chapter.

      (ii) Except as provided in section 42-64.5-7, "new employment" shall not include

employees already employed in this state who become employees of an eligible company as a

result of an acquisition of an existing company by purchase, merger, or otherwise, if the existing

company was eligible for a rate reduction. In the case of a manufacturing company that suffers a

disaster it shall mean any employment retained or added as the result of reconstruction of the

manufacturing facility.

      (9)(10) "Rate reduction" means the reduction in tax rate specified in section 42-64.5-4.

      (10)(11) "Small business concern" means, except as otherwise provided in section 42-

64.5-7, any eligible company which has a base employment level of less than one hundred (100);

provided, however, that a telecommunications company may not qualify as a small business

concern.

      (11)(12) "State" means the State of Rhode Island and Providence Plantations.

     (13) "Telecommunications company" means any public service company or corporation

whose rate of taxation is determined under section 44-13-4(4).

      (14) "Total employment" for an eligible company as of any date means the total number

of full-time equivalent active employees employed within the State by the eligible company and

its eligible subsidiaries on such date.

      (12)(15) "Units of new employment" means: (i) for eligible companies which are not

small business concerns, the amount of new employment divided by fifty (50), rounded down to

the nearest multiple of fifty (50), and (ii) for eligible companies which are small business

concerns the amount of new employment divided by ten (10), rounded down to the nearest

multiple of ten (10); provided, however, that an eligible company (other than an eligible company

that is a telecommunications company) with adjusted current employment of one hundred (100)

or more employees in its first year of operation or in any other period following the date its base

employment is determined shall determine its units of new employment by dividing the first one

hundred (100) employees less its base employment by ten (10), rounded down to the nearest

multiple of ten (10), and by dividing the number of additional employees in excess of one

hundred (100) by fifty (50), rounded down to the nearest multiple of fifty (50).

 

     SECTION 42. Chapter 42-64.7 of the General Laws entitled "Mill Building and

Economic Revitalization Act" is hereby repealed in its entirety.

 

     CHAPTER 42-64.7

Mill Building and Economic Revitalization Act

 

     42-64.7-1. Short title. -- This chapter shall be known and may be cited as the "Mill

Building and Economic Revitalization Act".

 

     42-64.7-2. Legislative findings and purpose. -- It is found and declared that:

      (1) Throughout the state of Rhode Island there are located numerous historic and

industrial mill structures which over the past two (2) decades have experienced high vacancy

rates and physical deterioration.

      (2) Without added economic incentive, these structures are not viable for redevelopment

and reuse by modern commercial and manufacturing enterprises and will continue their physical

deterioration.

      (3) The redevelopment and reuse of these historic industrial mill structures are of critical

importance to the economic well being of the state of Rhode Island and its towns and cities.

      (4) The adoption of certain economic incentive measures will assist in stimulating the

reuse and redevelopment of Rhode Island's historic industrial mill structures, and will benefit the

health, safety, welfare and prosperity of the people of this state.

 

     42-64.7-3. Purpose. -- It is the purpose of this chapter to create economic incentives for

the purpose of stimulating the redevelopment and reuse of Rhode Island's historic industrial mill

structures.

 

     42-64.7-4. Definitions and construction. -- As used in this chapter, unless the context

otherwise requires, the term:

      (1) "Certifiable building" means a mill complex or a building:

      (i) That was constructed prior to January 1, 1950;

      (ii) Having at least two (2) floors, excluding a basement; and

      (iii) Which is or will be used primarily for manufacturing, wholesale trade and other

commercial purposes;

      (iv) The use of which conforms to the comprehensive plan and local land use

management ordinances of the municipality in which the building is located;

      (v) That is proposed for substantial rehabilitation;

      (vi) That has been at a minimum seventy-five percent (75%) vacant for a minimum of

twenty-four (24) months at the time of submission by the municipality;

      (vii) That is designated by the municipality for consideration as a certifiable building as

hereinafter provided;

      (viii) Meets other requirements as established by the council; and

      (ix) Designated by the enterprise zone council as a certified building pursuant to the

requirements of section 42-64.7-5.

      (2) "Certification of an eligible business" means an annual process taking place on a

calendar year basis to certify entities as eligible businesses for the purpose of this chapter.

Businesses certified as eligible businesses for the purpose of this chapter, and which may also be

eligible for certification as certified businesses under the provisions of section 42-64.3-3(4) must

elect certification under only one designation of each certification year. This election must be

made for each certification year provided that the business continues to be eligible for both

designations on a year-to-year basis.

      (3) "Certified building owner" means an individual, partnership, corporation, limited

liability company or other entity which is listed in the appropriate municipal records of land

evidence as the owner of a certified building, and may include one or more successors in title to

the owner of the building at the time the building received written notice of final designation as a

certified building pursuant to section 42-64.7-6. A certified building owner may include the

owner of a leasehold interest with a minimum term of fifty (50) years, with respect to which a

memorandum of lease has been recorded in the land evidence records.

      (4) "Eligible business" means any business, corporation, sole proprietorship, partnership

limited partnership or limited liability company or other entity which:

      (i) Is located in a certified building after building has undergone substantial

rehabilitation as hereinafter defined;

      (ii) Is engaged principally in manufacturing, wholesale trade, or other commercial

business activities;

      (iii) Whose total Rhode Island salaries and wages exceed the total Rhode Island salaries

and wages paid to its employees in the prior calendar year;

      (iv) Has received certification from the enterprise zone council pursuant to the rules and

regulations promulgated by the council; and

      (v) Which, as part of its annual certification:

      (A) Obtains certificates of good standing from the Rhode Island division of taxation, the

corporations division of the Rhode Island secretary of state, and the appropriate municipal

authority;

      (B) Provides the enterprise zone council an affidavit stating under oath that the entity

seeking certification as a qualified business has not within the preceding twelve (12) months from

the date of application for certification changed its legal status or location solely for the purpose

of gaining favorable treatment under the provision of this chapter; and

      (C) Meets certain other requirements set forth by the council.

      (5) "Enterprise zone" means an enterprise zone established pursuant to section 42-64.3-4.

      (6) "Enterprise zone council" or the "council" means the enterprise zone council

established pursuant to section 42-64.3-3.1, and empowered with the same authority and given

the same responsibilities under that section.

      (7) "Municipality" means any city or town within the state, whether now existing or

hereafter created.

      (8) "Qualified employee" means a full-time employee of an eligible business whose

business activity originates and terminates from within the eligible business and certified building

on a daily basis, and who is employed by the eligible business at the end of the calendar year, and

who is a domiciled resident of the state of Rhode Island.

      (9) "Salaries and wages" means salaries, wages, tips and other compensation as defined

in the Internal Revenue Code of 1986, 26 U.S.C. section 61.

      (10) "Substantial rehabilitation" means rehabilitation or reconstruction costs of a

certified building in a dollar amount that equals or exceeds twenty percent (20%) of the market

value of the certified building prior to rehabilitation or reconstruction, as said prior market value

is determined by a Rhode Island licensed and certified appraiser who is independent of the

certified building owner or owners and their affiliated corporations, and/or any tenants of the

certified building and their affiliated corporations.

      (11) "Rehabilitation and reconstruction costs" means and includes only those amounts

incurred and paid by the certified building owner, after issuance of the notice of final designation

of the building, solely and exclusively for the rehabilitation of the certified building and which

are incurred and paid by the certified building owner to acquire tangible personal property and

structural components of the certified building which (i) are depreciated pursuant to 26 U.S.C.

section 167; (ii) have a useful life of three (3) years or more as evidenced by the tax depreciation

method taken and shown on the federal tax return of the certified building owner; and (iii) are

acquired by purchase as defined in 26 U.S.C. section 179(d). Rehabilitation and reconstruction

costs do not include amounts incurred or paid with respect to tangible personal property and

structural components of the certified building which the certified building owner leases from any

other person or corporation. For the purposes of the preceding sentence, any contract or

agreement to lease or rent or for a license to use the property shall be considered a lease unless

the contract or agreement is treated for the federal income tax purposes of the certified building

owner as an installment purchase rather than a lease.

      (12) "Mill complex" means two or more mill buildings, located on the same or

contiguous parcels of land, each of which, at one time, had the same owner(s).

      (13) "Certified building" means a building with respect to which the council has issued a

written notice of final designation as a certified building pursuant to the provisions of section 42-

64.7-6. A portion of a building may be treated as a separate building for purposes of this chapter

if:

      (i) It consists of a clearly identifiable part of a certifiable building, including without

limitation, one or more wings, stories, or other separable portions of a certifiable building;

      (ii) It is held by a single owner, whether in fee or as a condominium, cooperative or

leasehold interest; and

      (iii) At least one eligible business reasonable could be operated within the confines of

this portion.

 

     42-64.7-5. Building certification process. -- (a) No later than December 1, 2000, a

municipality shall submit to the enterprise zone council a list of industrial mill structures located

within the municipality for consideration by the council as to whether any of these structures

qualify as certifiable buildings. The council will notify the municipality as to which structures

qualify as certifiable buildings.

      (b) On or before May 1, 2001, any building designated by the enterprise zone council as

a certifiable building may then be submitted by the municipality to the council for preliminary

designation as a certified building, provided that the municipality has given notice to the council.

      (1) That the building conforms to the area restriction set forth in square feet in subsection

(d) of this section, and

      (2) That within six (6) months of this designation, the municipality agrees to:

      (i) Promulgate local regulations and ordinances providing favorable local property tax

treatment for certified industrial mill buildings which are substantially rehabilitated;

      (ii) Promulgate local regulations and ordinances to expedite the building permit review

and approval process required in the municipality for the rehabilitation of certified buildings;

      (iii) Promulgate local regulations and ordinances waiving all building permit fees of the

municipality for the rehabilitation of certified buildings;

      (iv) Promulgate local regulations and ordinances adopting design standards in the

municipality which encourage historic preservation of certified buildings, or alternatively, adopt

design standards developed and recommended by the Rhode Island historic preservation

commission;

      (v) Promulgate local regulations and ordinances requiring that the advice of the Rhode

Island historic preservation commission will be obtained for the rehabilitation of any certified

building in the municipality; and

      (vi) Establish a program for eligible businesses which coordinates the economic

development activities of state and local business assistance programs and agencies, including but

not limited to, the Ocean State business development authority, the Rhode Island small business

development center, the Rhode Island export assistance center, the applicable private industry

council, and the applicable chamber of commerce.

      (c) Notwithstanding anything to the contrary contained herein, the council's preliminary

designation of certified buildings within any municipality shall be limited in accordance with the

following:

      (1) One certified building per municipality having a population according to the most

recent federal census of less than twenty-five thousand (25,000); provided, however, that in the

event one or more enterprise zones have been designated in the municipality, it may be permitted

two (2) certified buildings, in which event, at least one of the certified buildings shall be located

within the municipality's boundaries of an enterprise zone;

      (2) Two (2) certified buildings per municipality having a population according to the

most recent federal census of between twenty-five thousand and one (25,001) and seventy-five

thousand (75,000); provided, however, that in the event one or more enterprise zones have been

designated in the municipality it may be permitted three (3) certified buildings, in which event, at

least one of the certified buildings shall be located within the boundaries of an enterprise zone;

and

      (3) Four (4) certified buildings per municipality having a population according to the

most recent federal census in excess of seventy-five thousand and one (75,001); provided,

however, that in the event one or more enterprise zones have been designated in the municipality,

it may be permitted six (6) certified buildings, in which event, at least two (2) of the certified

buildings shall be located within the boundaries of an enterprise zone.

      (d) The aggregate square footage of all certified buildings within any municipality shall

not exceed the average of three hundred thousand (300,000) gross square feet per certified

building.

 

     42-64.7-6. Notice of final designation of certified building. -- (a) Upon notice to the

council that the municipality has satisfied the requirements of section 42-64.7-5(b)(2)(i) through

(vi), the council shall provide to the municipality and to the certified building owner a written

notice of final designation, which notice shall include a statement that an independent appraisal is

required in order to comply with the requirements of section 42-64.7-4(10).

      (b) The certification and the benefits accruing thereto shall apply for no more than five

(5) years from the date of final designation by the council, except in the case of the carryover of

unused specialized investment tax credits as provided by section 44-31-2, and in no case shall the

benefits accruing be applied retroactively.

 

     42-64.7-6.1. Certified building rehabilitation. -- (a) A certified building shall be treated

as having been substantially rehabilitated only if the reconstruction and rehabilitation

expenditures incurred during the twenty-four (24) months period selected by the certified building

owner and ending with or within the taxable year in which the rehabilitated certified building is

first placed in service by the certified building owner meet the definition of "substantial

rehabilitation" set forth in section 42-64.7-4(12). For purposes of determining whether the

requirements of section 42-64.7-4(12) have been met, the market value of the certified building

shall be determined at the beginning of the 1st day of such twenty-four (24) month period.

      (b) Special rule for phased rehabilitation. - In the case of any rehabilitation which may

reasonably be expected to be completed in phases set forth in architectural plans and

specifications completed before the rehabilitation begins, clause (a) shall be applied by

substituting "sixty (60) month period" for "twenty-four (24) month period".

 

     42-64.7-7. Specialized investment tax credit. -- A certified building owner may be

allowed a specialized investment tax credit as set out in section 44-31-2 against the tax imposed

by chapters 11 and 30 of title 44.

 

     42-64.7-8. Business tax credits. -- A taxpayer who owns and operates an eligible

business within a certified building that has been substantially rehabilitated is allowed a credit

against the tax imposed pursuant to chapter 11 or 30 of title 44 as follows:

      (1) A credit equal to one hundred percent (100%) of the total amount of Rhode Island

salaries and wages as are paid to qualified employees in excess of Rhode Island salaries and

wages paid to the same employees in the prior calendar year. The maximum credit allowable per

taxable year under the provisions of this subsection is three thousand dollars ($3,000) per

qualified employee.

      (2) Any tax credits provided in subdivision (1) shall not offset any tax liability in years

other than the year in which the taxpayer qualifies for the credit. Fiscal year taxpayers must claim

the tax credit in the year in which the December 31st of the certification year falls. The credit

shall not reduce the tax below the minimum tax. The credit shall be used to offset tax liability

under either chapter 11 or 30 of title 44, but not both.

      (3) In the case of a corporation, the credit allowed under this section is only allowed

against the tax of that corporation included in a consolidated return that qualifies for the credit

and not against the tax of other corporations that may join in the filing of a consolidated tax

return.

      (4) In the case of multiple business owners, the credit provided in subdivision (1) is

apportioned according to the ownership interests of the eligible business.

      (5) In the event that the eligible business is located within an enterprise zone and is a

certified business under the provisions of section 42-64.3-6, the taxpayer must elect to use the

credit provided under subdivision (1) or the credit provided in section 42-64.3-6 to offset tax

liability, but the taxpayer may not elect to claim both.

 

     42-64.7-9. Interest income. -- (a) A taxpayer is allowed a ten percent (10%) credit

against taxes due under the provisions of chapters 11, 13, 14, 17, or 30 of title 44 for interest

earned and paid on loans made to eligible businesses as defined in section 42-64.6-4 of this

chapter, solely and exclusively for expenditures within the certified building.

      (b) The taxpayer is further allowed a one hundred percent (100%) credit against taxed

due under chapters 11, 13, 14, 17, or 30 of title 44 for interest earned on loans made solely and

exclusively for the purposes of substantial rehabilitation as defined in section 42-64.7-4.

      (c) Any tax credit herein provided shall not offset any tax liability in taxable years other

than the year in which the taxpayer qualifies for the credit. The credit shall not reduce the tax

below the minimum, and, in the case of a corporation, shall only be allowed against the tax of that

corporation included in a consolidated return that qualifies for the credit and not against the tax of

other corporations that may join in the filing of a consolidated tax return.

      (d) The taxpayer is allowed a maximum credit of ten thousand dollars ($10,000) per

taxable year under subdivision (a) of this section. The taxpayer is allowed a maximum credit of

twenty thousand dollars ($20,000) per taxable year under subdivision (b).

      (e) In the event a certified building owner is also a qualified business under chapter 64.3

of this title, the lender/taxpayer must elect to treat the loan described in subdivision (a) and its

related interest payments as pertaining to the interest credit provided in this section.

 

     42-64.7-10. Exemption or stabilization of taxes. -- Notwithstanding the provisions of

any municipal charter or any other general, special or local law to the contrary, real property taxes

for a certified building and tangible property taxes of the owner or owners of a certified building

for tangible property used in the certified building may be exempted from payment, in whole or

in part, notwithstanding the valuation of the property or the rate of tax, by vote of the city or town

council to the extent deemed appropriate by the city or town council to carry out the purposes of

this chapter. This section shall be construed to provide a complete, additional and alternative

authority for the city or town council to grant exemption or stabilization of real or tangible

property taxes with respect to certified buildings, and the granting of tax exemption or

stabilization by the city or town council under the provisions of this section does not require the

taking of any other proceedings or the happening of any condition, except for the vote of the city

or town council.

 

     42-64.7-11. Expedited permit process. -- Any building designated by the enterprise

zone council as a certified building shall be immediately forwarded by the building owner to the

governor and the board of directors of the Rhode Island economic development corporation for

consideration as a project of critical economic concern as that term is defined in section 42-117-

3(3) and shall be entitled to the benefits of chapter 117 of this title.

 

     42-64.7-12. Expiration. -- This chapter shall terminate and be of no further effect seven

(7) years from August 8, 1996, unless the chapter is extended by action of the general assembly.

 

     42-64.7-13. Examination of taxpayer's records. -- The tax administrator and his or her

agents, for the purpose of ascertaining the correctness of any credit claimed under the provisions

of this chapter, may examine any books, paper, records, or memoranda bearing upon the matters

required to be included in the return, report, or other statement, and may require the attendance of

the person executing the return, report, or other statement, or of any officer or employee of any

taxpayer, or the attendance of any other person, and may examine the person under oath

respecting any matter which the tax administrator or his or her agent deems pertinent or material

in determining the eligibility for credits claimed.

 

     42-64.7-14. Penalties. -- Any taxpayer or employee, officer or agent of any taxpayer that

willfully fails to comply with the provisions of this chapter or otherwise submits false or

misleading information shall be guilty of a felony and upon conviction shall be fined an amount

not more than three (3) times the amount of the tax credit received by the taxpayer, or imprisoned

not more than one year, or both.

 

     42-64.7-15. Revocation of certification. -- The council has the power to revoke the

certification of any building certified under section 42-64.7-5 of this chapter and to revoke the

eligibility of any business defined as an eligible business under section 42-64.7-4.

 

     42-64.7-16. Additional rules and regulations. -- (a) The state tax administration shall

promulgate appropriate rules and regulations to ensure the proper administration of the taxation

provisions of this chapter. The council shall promulgate appropriate rules and regulations with

respect to the building certification process, and the certification of eligible businesses, and shall

advise the tax administrator of them and shall promulgate any other rules and regulations that

may be necessary to carry out the provisions of this chapter.

      (b) In addition to the rules and regulations as provided in subdivision (a), the Rhode

Island economic development corporation, with assistance from the department of administration

office of systems planning and subject to the approval of the enterprise zone council, shall adopt

performance standards in order to evaluate the effectiveness of this chapter in accomplishing its

stated purpose.

      (c) The evaluation, according to the performance standards established by subdivision

(b), shall be conducted and reported on an annual basis for each of the years the provisions of this

chapter are in force.

 

     42-64.7-17. Severability. -- If the provisions of this chapter or the application of this

chapter to any person or circumstances is held invalid, the invalidity shall not affect other

provisions or applications of the chapter which can be given effect without the invalid provision

or application, and to this end the provisions of the chapter are declared to be severable.

 

     42-64.7-18. Applicability. -- The provisions of this chapter apply to all buildings that

have been designated by the enterprise zone council as certifiable buildings pursuant to chapter

64.5 of this title for all years commencing with the year of the designation.

 

     SECTION 43. Section 42-64.9-6.1 of the General Laws in Chapter 42-64.9 entitled "Mill

Building and Economic Revitalization Act" is hereby amended to read as follows:

 

     42-64.9-6.1. Certified building rehabilitation. -- (a) A certified building shall be treated

as having been substantially rehabilitated only if the reconstruction and rehabilitation

expenditures incurred during the twenty-four (24) month period selected by the certified building

owner and ending with or within the taxable year in which the rehabilitated certified building is

first placed in service by the certified building owner meet the definition of "substantial

rehabilitation" set forth in section 42-64.9-4(12)(13). For purposes of determining whether the

requirements of section 42-64.9-4(12)(13) have been met, the market value of the certified

building shall be determined at the beginning of the 1st day of such twenty-four (24) month

period.

      (b) Special rule for phased rehabilitation. - In the case of any rehabilitation which may

reasonably be expected to be completed in phases set forth in architectural plans and

specifications completed before the rehabilitation begins, subsection (a) shall be applied by

substituting "sixty (60) month period" for "twenty-four (24) month period."

 

     SECTION 44. Section 42-69-1 of the General Laws in Chapter 42-69 entitled "Schooner

Ernestina/Morrissey Commission" is hereby amended to read as follows:

 

     42-69-1. Commission established -- Membership. -- There is established a permanent

state commission to be known as the schooner Ernestina/Morrissey commission, consisting of

nine (9) members to be appointed by the governor, one of whom shall be the director of the

Rhode Island port authority and economic development corporation, or that director's designee,

one of whom shall be the director of the department of environmental management, or that

director's designee, one of whom shall be the mayor of the city of Providence, or the mayor's

designee, one of whom shall be a member of the heritage commission, one of whom shall be from

the university of Rhode Island's division of marine resources, and four (4) of whom shall be from

the public sector.

 

     SECTION 45. Sections 42-72-5 and 42-72-30 of the General Laws in Chapter 42-72

entitled "Children, Youth, and Families Department" are hereby amended to read as follows:

 

     42-72-5. Powers and scope of activities. -- (a) The department is the principal agency of

the state to mobilize the human, physical and financial resources available to plan, develop, and

evaluate a comprehensive and integrated statewide program of services designed to ensure the

opportunity for children to reach their full potential. The services include prevention, early

intervention, out-reach, placement, care and treatment, and after-care programs; provided,

however, that the department notifies the state police and cooperates with local police

departments when it receives and/or investigates a complaint of sexual assault on a minor and

concludes that probable cause exists to support the allegations(s). The department also serves as

an advocate for the needs of children.

      (b) To accomplish the purposes and duties, as set forth in this chapter, the director is

authorized and empowered:

      (1) To establish those administrative and operational divisions of the department that the

director determines is in the best interests of fulfilling the purposes and duties of this chapter;

      (2) To assign different tasks to staff members that the director determines best suit the

purposes of this chapter;

      (3) To establish plans and facilities for emergency treatment, relocation and physical

custody of abused or neglected children which may include, but are not limited to,

homemaker/educator child case aides, specialized foster family programs, day care facilities,

crisis teams, emergency parents, group homes for teenage parents, family centers within existing

community agencies, and counselling counseling services;

      (4) To establish, monitor, and evaluate protective services for children including, but not

limited to, purchase of services from private agencies and establishment of a policy and

procedure manual to standardize protective services;

      (5) To plan and initiate primary and secondary treatment programs for abused and

neglected children;

      (6) To evaluate the services of the department and to conduct periodic comprehensive

needs assessment;

      (7) To license, approve, monitor, and evaluate all residential and non-residential child

care institutions, group homes, foster homes, and programs;

      (8) To recruit and coordinate community resources, public and private;

      (9) To promulgate rules and regulations concerning the confidentiality, disclosure and

expungement of case records pertaining to matters under the jurisdiction of the department;

      (10) To establish a minimum mandatory level of twenty (20) hours of training per year

and provide ongoing staff development for all staff; provided, however, all social workers hired

after June 15, 1991, within the department shall have a minimum of a bachelor's degree in social

work or a closely related field, and must be appointed from a valid civil service list;

      (11) To establish procedures for reporting suspected child abuse and neglect pursuant to

chapter 11 of title 40;

      (12) To promulgate all rules and regulations necessary for the execution of departmental

powers pursuant to the Administrative Procedures Act, chapter 35 of title 42;

      (13) To provide and act as a clearinghouse for information, data and other materials

relative to children;

      (14) To initiate and carry out studies and analysis which will aid in solving local,

regional and statewide problems concerning children;

      (15) To represent and act on behalf of the state in connection with federal grant programs

applicable to programs for children in the functional areas described in this chapter;

      (16) To seek, accept, and otherwise take advantage of all federal aid available to the

department, and to assist other agencies of the state, local agencies, and community groups in

taking advantage of all federal grants and subventions available for children;

      (17) To review and coordinate those activities of agencies of the state and of any

political subdivision of the state which affect the full and fair utilization of community resources

for programs for children, and initiate programs that will help assure utilization;

      (18) To administer the pilot juvenile restitution program, including the overseeing and

coordinating of all local community based restitution programs, and the establishment of

procedures for the processing of payments to children performing community service; and

      (19) To adopt rules and regulations which:

      (i) For the twelve (12) month period beginning on October 1, 1983, and for each

subsequent twelve (12) month period, establish specific goals as to the maximum number of

children who will remain in foster care for a period in excess of two (2) years; and

      (ii) Are reasonably necessary to implement the child welfare services and foster care

programs;

      (20) May establish and conduct seminars for the purpose of educating children regarding

sexual abuse;

      (21) To establish fee schedules by regulations for the processing of requests from

adoption placement agencies for adoption studies, adoption study updates, and supervision related

to interstate and international adoptions. The fee shall equal the actual cost of the service(s)

rendered, but in no event shall the fee exceed two thousand dollars ($2,000);

      (22) To be responsible for the education of all children who are placed, assigned, or

otherwise accommodated for residence by the department in a state operated or supported

community residence licensed by a Rhode Island state agency. In fulfilling this responsibility the

department is authorized to enroll and pay for the education of students in the public schools or,

when necessary and appropriate, to itself provide education in accordance with the regulations of

the board of regents for elementary and secondary education either directly or through contract;

      (23) To develop multidisciplinary service plans, in conjunction with the department of

health, at hospitals prior to the discharge of any drug-exposed babies. The plan requires the

development of a plan using all health care professionals.

      (24) To be responsible for the delivery of appropriate mental health services to seriously

emotionally disturbed children. Appropriate mental health services may include hospitalization,

placement in a residential treatment facility, or treatment in a community based setting. The

department is charged with the responsibility for developing the public policy and programs

related to the needs of seriously emotionally disturbed children.

      In fulfilling its responsibilities the department shall:

      (i) Plan a diversified and comprehensive network of programs and services to meet the

needs of seriously emotionally disturbed children;

      (ii) Provide the overall management and supervision of the state program for seriously

emotionally disturbed children;

      (iii) Promote the development of programs for preventing and controlling emotional or

behavioral disorders in children;

      (iv) Coordinate the efforts of several state departments and agencies to meet the needs of

seriously emotionally disturbed children and to work with private agencies serving those children;

      (v) Promote the development of new resources for program implementation in providing

services to seriously emotionally disturbed children.

      The department shall adopt rules and regulations which are reasonably necessary to

implement a program of mental health services for seriously emotionally disturbed children.

      Each community, as defined in chapter 7 of title 16, shall contribute to the department, at

least in accordance with rules and regulations to be adopted by the department, at least its average

per pupil cost for special education for the year in which placement commences, as its share of

the cost of educational services furnished to a seriously emotionally disturbed child pursuant to

this section in a residential treatment program which includes the delivery of educational services.

      "Seriously emotionally disturbed child" means any person under the age of eighteen (18)

years or any person under the age of twenty-one (21) years who began to receive services from

the department prior to attaining eighteen (18) years of age and has continuously received those

services thereafter who has been diagnosed as having an emotional, behavioral or mental disorder

under the current edition of the Diagnostic and Statistical Manual and that disability has been on-

going for one year or more or has the potential of being ongoing for one year or more, and the

child is in need of multi-agency intervention, and the child is in an out-of-home placement or is at

risk of placement because of the disability.

      (25) To develop and maintain, in collaboration with other state and private agencies, a

comprehensive continuum of care in this state for children in the care and custody of the

department or at risk of being in state care. This continuum of care should be family-centered and

community-based with the focus of maintaining children safely within their families or, when a

child cannot live at home, within as close proximity to home as possible based on the needs of the

child and resource availability. The continuum should include community-based prevention,

family support and crisis intervention services as well as a full array of foster care and residential

services, including residential services designed to meet the needs of children who are seriously

emotionally disturbed and youth who have juvenile justice issues. The director shall make

reasonable efforts to provide a comprehensive continuum of care for children in the care and

custody of the DCYF, taking into account the availability of public and private resources and

financial appropriations and the director shall submit an annual report to the general assembly as

to the status of his or her efforts in accordance with the provisions of subsection 42-72-4(b)(13).

      (c) In order to assist in the discharge of his or her duties, the director may request from

any agency of the state information pertinent to the affairs and problems of children.

 

     42-72-30. Family and children trust program. -- (a) There is created the family and

children trust program. The director may apply for, receive and accept grants, gifts, and bequests

from any source, governmental or private, with the approval of the director of administration.

Upon receipt of any remittance the director shall transmit the entire amount to the general

treasurer, who shall deposit it as general revenues. The general assembly may appropriate funds

for the family and children trust program.

      (b) The family and children trust program monies fund with the accumulated interest

shall be used for the following purposes: (1) matching federal funds to purchase services relating

to community-based programs for the prevention of problems of families and children; (2)

providing start-up or expansion grants for community-based prevention projects or educational

programs for the problems of families and children, primarily, but not limited to, child abuse and

neglect and family abuse; and (3) studying and evaluating community-based prevention projects

and educational programs for the problems of families and children; provided that grantees of

funds shall be required to match those funds in cash, or services in kind, the value of which shall

be determined by the director. For the purpose of this subsection, "educational programs" shall

include instructional and demonstration programs whose main purpose is to disseminate

information and techniques or to provide services for the prevention of problems of families and

children.

      (c) The state advisory council for children and their families established by section 42-

72-12 [repealed] or its successor, shall advise the director in detail on the expenditure of funds

from the family and children trust fund, and shall:

      (1) Develop a biennial plan for distribution of funds;

      (2) Develop criteria for awarding funds;

      (3) Review proposals for the funds and present recommendations to the director;

      (4) Monitor the expenditure of funds and review the annual report on the use thereof as

presented by the director; and

      (5) Promote the general development of public and private sector child abuse prevention

programs and activities.

      (d) The state controller is authorized and directed to draw his or her orders upon the

general treasurer for the payments of any expenditures out of the unexpended balance of the fund

as may be ordered by the director upon proper vouchers presented to the controller by the

director.

 

     SECTION 46. Section 42-72.2-4 of the General Laws in Chapter 42-72.2 entitled

"Family Support Program" is hereby amended to read as follows:

 

     42-72.2-4. Cooperation of other state agencies with the family support program. –

(a) The department of health shall develop agreements with the department of children, youth,

and families, the department of elementary and secondary education, the department of human

services, and the department of mental health, retardation and hospitals to delineate the role and

function of each department. In order to carry out the provisions of this chapter, each of the

foregoing departments shall assign a staff person who will assume responsibility for

implementation of the program and each department shall provide statistical and analytical data

needed to carry out the provisions of this chapter.

      (b) Each of the foregoing departments shall enter into an agreement with the family

support program and shall join with the program in a cooperative effort to carry out the provisions

of section 42-72.2-2.

 

     SECTION 47. Section 42-78-2 of the General Laws in Chapter 42-78 entitled "Cultural

Coordinating Council" is hereby amended to read as follows:

 

     42-78-2. Composition of council. -- The council shall consist of the executive directors

and chairpersons of the Rhode Island heritage commission, the council on the arts, the historical

preservation commission, the Rhode Island historical society, the Rhode Island committee for the

humanities, the state archivist, and a representative of the governor's office. The directors of the

departments of administration, Rhode Island economic development corporation, department of

environmental management, and state library services shall also serve as ex-officio members.

 

     SECTION 48. Section 42-82-15 of the General Laws in Chapter 42-82 entitled

"Farmland Preservation Act" is hereby repealed.

 

     42-82-15. [Obsolete.] –

 

     SECTION 49. Section 42-98-19 of the General Laws in Chapter 42-98 entitled "Energy

Facility Siting Act" is hereby amended to read as follows:

 

     42-98-19. Applicability. – (a) This chapter shall take effect upon its passage and shall

operate prospectively and shall not apply to any electric cogeneration energy facility capable of

operating at a gross capacity of more than 40 megawatts but less than 80 megawatts which, prior

to May 30, 1990, has applied to the department of environmental management for an air quality

permit or approval; provided, however, that, notwithstanding that application, this chapter shall

apply to any facility capable, at any time, of operating at a gross capacity of 80 megawatts or

more.

     (b) The complete plans submitted pursuant to section 42-98-8 shall be the basis for

determining jurisdiction under this section.

 

     SECTION 50. Section 42-102-4 of the General Laws in Chapter 42-102 entitled "Rhode

Island Human Resource Investment Council" is hereby amended to read as follows:

 

     42-102-4. Terms of office and voting. -- (a) Of the thirteen (13) members appointed by

the governor, seven (7) shall be appointed for a term of two (2) years, and six (6) shall be

appointed for three (3) years. After the initial appointments of those individuals serving two (2)

year terms, they or their successors shall be appointed to three (3) year terms. A vacancy in the

office of a member, other than by expiration of the member's term, shall be filled in the same

manner as the original appointment, but only for the remainder of the prevailing term. Members

whose terms expire may be reappointed.

      (b) Only members shall have the right to vote.

      (c) A majority of duly appointed members shall constitute a quorum, provided, however,

that at least six (6) members shall be necessary for a quorum.

      (b) [Deleted by P.L. 2004, ch. 369, section 2, and by P.L. 2004, ch. 388, section 2.]

 

     SECTION 51. Section 42-105-2 of the General Laws in Chapter 42-105 entitled

"Newport County Convention and Visitors' Bureau" is hereby amended to read as follows:

 

     42-105-2. Composition. -- (a) (i)(1) The Newport County convention and visitors' bureau

shall be comprised of fifteen (15) members who are residents of Newport County.

      (ii)(2) All members of the bureau as of the effective date of this act [September 1, 2005]

shall cease to be members of the authority on the effective date of this act [September 1, 2005]

and the bureau shall thereupon be reconstituted as follows:

      (A)(i) Three (3) members shall be appointed by the Newport City Council; two (2) of

whom shall be associated with the hospitality industry;

      (B)(ii) Three (3) members shall be appointed by the Middletown Town Council; two (2)

of whom shall be associated with the hospitality industry;

      (C)(iii) One member shall be appointed by the Jamestown Town Council who shall be

associated with the hospitality industry;

      (D)(iv) One member shall be appointed by the Portsmouth Town Council who shall be

associated with the hospitality industry;

      (E)(v) One member shall be appointed by the Tiverton Town Council who shall be

associated with the hospitality industry;

      (F)(vi) One member shall be appointed by the Little Compton Town Council who shall

be associated with the hospitality industry; and

      (G)(vii) Those members appointed pursuant to subsections paragraphs (a)(ii)(A) (i)

through (a)(ii)(F) (vi) shall thereupon appoint five (5) members, who shall be:

      (I)(A) One representative of hotels of more than one hundred (100) rooms;

      (II)(B) One representative of hotels, inns or bed-and-breakfasts of less than one hundred

(100) rooms;

      (III)(C) One representative of the restaurant industry;

      (IV)(D) One representative of the attractions industry; and

      (V)(E) One member of the general public.

      (iii)(3) All members of the public shall be appointed to serve terms of two (2) years.

Members of the bureau shall be eligible for reappointment.

      (iv)(4) No state legislator shall serve or be otherwise eligible for membership on the

bureau.

      (b) The members of the Newport County convention and visitors' bureau shall serve

without compensation and shall be residents of Newport County.

      (c) The Newport County convention and visitors' bureau shall meet every other month at

a time to be designated by the chairperson. Special meetings of the authority may be called by the

chairperson in accordance with the open meetings law. The chairperson shall be elected by the

membership of the authority.

 

     SECTION 52. Section 42-113-4 of the General Laws in Chapter 42-113 entitled "Rhode

Island Housing and Conservation Trust Fund Act" is hereby amended to read as follows:

 

     42-113-4. Creation of the Rhode Island housing and conservation board. -- (a) There

is hereby authorized, created and established a body politic and corporate to be known as the

"Rhode Island housing and conservation board" to carry out the provisions of this chapter. The

board is constituted a public instrumentality exercising public and essential governmental

functions, and the exercise by the board of the powers conferred by this chapter are deemed and

held to be the performance of an essential governmental function of the state.

      (b) The board shall consist of nine (9) members.

      (1) The four (4) non-voting ex-officio members shall include the director of the

department of environmental management, or a designee, the director of the office of

intergovernmental affairs/housing, or designee, the executive director of the Rhode Island

housing and mortgage finance corporation, or designee, and the director of the office of statewide

planning, or designee.

      (2) The governor, with the advice and consent of the senate, shall appoint five (5)

members of the general public. In making these appointments, the governor shall give due

consideration to recommendations made by the Rhode Island Community Reinvestment

Association, Environment Council of Rhode Island, Rhode Island Association of Land Trusts,

and representatives of tenancy advocacy and family farm associations.

      (3) Any designee of the four (4) governmental members serving ex-officio as stipulated

in subsection 42-113-4(b)(1) or of the three (3) members who is a chair or president of a non-

governmental organization as stipulated in subsection 42-113-4(b)(2) shall be a subordinate of the

designator within his or her respective department, office, or nongovernmental organization.

These designees shall represent him or her at all meetings of the board.

      (4) No one shall be eligible for public appointment unless he or she is a resident of this

state.

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

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

developed with board approval and conducted by the chair or his or her designee and shall

include instruction in the subject area of chapter 113 of this title and chapters 46 of this title, 14 of

title 36, and 2 of title 38 of Rhode Island general laws; and the board's rules and regulations.

      (c) Those members of the board as of the effective date of this act [July 9, 2005]who

were appointed to the board by members of the general assembly shall cease to be members of

the commission on the effective date of this act [July 9, 2005] Public members of the board

appointed by the governor will be appointed for three (3) year terms and cannot serve more than

two (2) consecutive terms.

      (d) Annually, the board shall elect from among its public members a chairperson and

vice-chairperson. The board may elect from among its members any other officers it deems

necessary. Meetings shall be held at the call of the chairperson or at the request of three (3)

members. A majority of the sitting members shall constitute a quorum and action taken by the

board under the provisions of this chapter may be authorized by a majority of the members

present and voting at any regular or special meeting.

      (e) Three (3) or more voting members of the board shall constitute a quorum for the

transaction of business. A majority vote of those present shall be required for action. No vacancy

in the membership of the board shall impair the right of a quorum to exercise all of the rights and

perform all of the duties of the board.

      (f) Any vacancy which may occur in the board shall be filled accordingly in the same

manner as prescribed above.

      (g) The board shall appoint and employ an executive director, and it shall be his or her

duty to:

      (1) Supervise and administer allocations made through the trust fund in accordance with

this chapter and with the rules and regulations of the board;

      (2) Act as the chief administrative officer having general charge of the office and records

and to employ temporarily, subject to the approval of the board, necessary personnel to serve at

his or her pleasure and who shall be in the unclassified service and whose salaries shall be set by

the board;

      (3) Act as executive secretary of the board; and

      (4) Perform other duties as determined by the board which are in accordance with this

chapter and with the rules and regulations of the board.

      (h) The board shall use the office of the attorney general for legal services.

      (i) Within ninety (90) days after the end of each fiscal year, the board shall approve and

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

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

provide: an operating statement summarizing meetings or hearings held, meeting minutes if

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

conducted, policies and plans developed, approved, or modified, and programs administered or

initiated; a consolidated financial statement of all funds received and expended including the

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

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

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

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

any training courses held pursuant to subdivision 42-113-4(b)(6)(5); a briefing on anticipated

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

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

as prescribed in section 42-20-8.2.

 

     SECTION 53. Sections 42-116-3, 42-116-12, 42-116-33, 42-116-40 and 42-116-41 of the

General Laws in Chapter 42-116 entitled "Rhode Island Depositors Economic Protection

Corporation" are hereby amended to read as follows:

 

     42-116-3. Definitions. -- As used in this chapter, unless the context clearly indicates

otherwise, the following words and phrases have the following meanings:

      (1) "Board" means the board of directors of the corporation.

      (2) "Bonds" means the bonds, notes, or other evidences of indebtedness of the

corporation.

      (3) "Commission" means the select commission to investigate the failure of RISDIC

insured financial institutions established pursuant to P.L. 91-015.

      (4) "Commission costs" means those costs and expenses in the aggregate not to exceed

three million eight hundred thousand dollars ($3,800,000) incurred by the commission for

services rendered pursuant to a written contract entered into by the commission in furtherance of

its purpose, but only to the extent that those costs and expenses have been designated as

commission costs and expenses by an affirmative vote of a majority of the members of the

commission.

      (5) "Corporation" means the Rhode Island depositors economic protection corporation.

      (6) "Cost" means any or all costs incurred by the corporation in connection with its

operation and in connection with acquiring, managing, restructuring, refinancing, marketing,

selling, and disposing of the assets of eligible institutions and/or the corporation including,

without limiting the generality of the foregoing, amounts for the following: acquisition,

restructuring, refinancing, marketing, sale and disposition of real property, loans and loan

participations, including without limitation, commercial loans, real estate construction loans,

commercial mortgage loans, consumer installment loans, home equity loans and residential

mortgage loans, together with all unpaid interest thereon, including all promissory notes

evidencing the loans, all loan agreements, mortgages, security agreements, financing statements,

assignments of leases and rents, loan indemnity agreements, guarantees and letters of credit (and

any cash proceeds thereof which have not been applied against the obligations under any of the

loans) and any other forms of collateral or credit enhancement related to the loans, all cash held

by a financial institution as collateral in connection with any loans, all accounts receivable arising

from the eligible institution's business, and all letter of credit agreements, fees of trustees and

other depositories, legal and auditing fees, premiums and fees for insurance, letters and lines of

credit and other credit facilities and, services of engineers, environmental, property management

and financial experts and other consultants, and working capital and administrative expenses,

legal expenses and other expenses necessary or incidental to the aforesaid.

      (7) "Department" means the department of business regulation.

      (8) "Deposit liabilities" means liabilities of an eligible institution in respect of time,

savings, demand or other deposits of the institution, including without limitation certificates of

deposit, individual retirement accounts, escrow and fiduciary accounts, and unpaid cashiers

checks issued to depositors or issued to or for depositors in the course of a withdrawal from an

account at the institution.

      (9) "Eligible institution" means (a)(i) any credit union, loan and investment company,

bank and trust company or other depository institution, (i)(A) the accounts of which were insured

by the Rhode Island share and deposit indemnity corporation as of December 30, 1990, and

(ii)(B) for which a conservator or receiver had been appointed subsequent to January 1, 1991, and

(b)(ii) any conservator or apointed appointed receiver and (c)(iii) the Rhode Island share and

deposit indemnity corporation and (d)(iv) Heritage Loan and Investment Company.

      (10) "Person" means any natural or corporate person, including bodies politic and

corporate, public departments, offices, agencies, authorities and political subdivisions of the state,

corporations, societies, associations and partnerships, and subordinate instrumentalities of any

one or more political subdivisions of the state.

      (11) "Revenues" means when used with reference to the corporation, any receipts, fees,

payments, moneys, revenues or other payments received or to be received by the corporation in

the exercise of its corporate powers under this chapter, including without limitation loan

repayments, grants, aid, appropriations and other assistance from the state, the United States or

any corporation, department or instrumentality of either or of a political subdivision thereof, bond

proceeds, investment earnings, insurance proceeds, amounts in reserves and other funds and

accounts established by or pursuant to this chapter or in connection with the issuance of bonds,

and any other taxes, assessments, fees, charges, awards or other income or amounts received or

receivable by the corporation.

      (12) "Trust agreement" means a trust agreement, loan agreement, security agreement,

reimbursement agreement, currency or interest rate exchange agreement or other security

instrument, and a resolution, loan order or other vote, authorizing, securing, or otherwise

providing for the issue of bonds or loans.

 

     42-116-12. Payment of depositor's claims. -- (a) Subject to the provisions of section 42-

116-7(1) -- (6) of this chapter, distributions from the corporation with respect to deposit liabilities

assumed from eligible institutions shall be made in accordance with this section.

      (b) For the purposes of this section, each assumed deposit liability is the sum of the

principal amount thereof as of January 1, 1991, plus accrued interest thereon to the date that the

eligible institution was petitioned into receivership. In the case of an eligible institution that is a

credit union, all types of the eligible institution's member share accounts, including regular

shares, share certificates and share draft accounts, except as to one share per account which are

deemed to constitute an equity ownership interest in the eligible institution, are deemed to be

deposit liabilities to the extent assumed by the corporation.

      (c) Deposit liabilities and distributions on account thereof made pursuant to this section

shall not include any interest accrued from the time that the eligible institution from which the

deposit liabilities arose was petitioned into receivership.

      (d) For the purpose of determining distributions by the corporation in respect of assumed

deposit liabilities, as set forth in subsection (b), assumed deposit liabilities in the same eligible

institution are aggregated and adjusted in accordance with regulations adopted by the corporation,

which regulations follow the principles contained in section 3(m) of the Federal Deposit

Insurance Act, 12 U.S.C. section 1811 et seq. as in effect as of December 31, 1990 and rules and

regulations of the federal deposit insurance corporation as in effect as of December 31, 1990.

Assumed deposit liabilities determined after this aggregation shall be segregated into separate

obligations that are entitled to separate distributions from the corporation as provided in this

section (as so aggregated and determined referred to individually as "distributable account" and

collectively as "distributable accounts").

      (e) Payments on account of distributable accounts as set forth in subsection (d) shall be

made as follows:

      (1) Distributable accounts of four thousand dollars ($4,000) or less shall be paid in full

by June 30, 1992.

      (2) As to distributable accounts of more than four thousand dollars ($4,0000), ninety

percent (90%) of the entire balance of the distributable account shall be paid by June 30, 1992.

      (3) As to distributable accounts described in subsection (e)(2), there is established a

guaranteed balance equal to ten percent (10%) of the distributable account as initially determined.

The guaranteed balance shall bear simple interest, not compounded, at five percent (5%) per

annum beginning July 1, 1992. Interest accrued through June 30, 1997 shall be posted to each

depositor's guaranteed balance as of June 30, 1997 as an addition to the principal thereof. A

depositor has no right to receive that interest prior to July 1, 1997. The principal of the guaranteed

balance, to include the interest posted on June 30, 1997, shall be paid in fifteen (15) consecutive

equal annual payments commencing on July 1, 1997 and on each July 1, thereafter until paid in

full. Notwithstanding any other provisions or references to pro-rata distribution in chapter 116 of

title 42, all net proceeds from litigation, whether settled in or out of court, shall be paid equally to

each depositor with guaranteed balances upon receipt by the corporation each time that escrow

reaches fifteen million dollars ($15,000,000). Interest accrued after June 30, 1997 shall be paid in

arrears on the outstanding principal of the guaranteed balance concurrently with each annual

principal payments.

      (f) The principal amount of any guaranteed balance and/or the amount of each

distribution by the corporation under this section, including without limitation those in respect of

distributable accounts and/or guaranteed balances, shall be reduced permanently from time to

time by an amount equal to the aggregate of all prior payments not previously applied against

each distribution, and the corporation may continue to reduce these distributions by any unapplied

prior payments until the aggregate amount of the prior payments have been applied against these

distributions under this section. For the purposes of this section, the term "prior payment" means

the aggregate amount from time to time after January 1, 1991 of:

      (1) Payments made or issued by an eligible institution, the receiver of the eligible

institution or the corporation (other than distributions under this section) in respect of any deposit

liabilities of the intended recipient of the distribution and/or any deposit liabilities giving rise to

the distribution; and

      (2) Set-offs made by the eligible institution, the receiver of the eligible institution or the

corporation in respect of any deposit liabilities of the intended recipient of the distribution and/or

any deposit liabilities giving rise to the distribution.

      (g) (1) Within thirty (30) days after the date of the payment set forth in subsection (e)(2)

and concurrently with each annual payment of the guaranteed balance, the owner thereof shall

receive a statement of account.

      (2) From June 30, 1992 until June 30, 1997, except for transfer by will, the laws of

descent and distribution, or otherwise required by operation of law, the guaranteed balance is

non-transferable, whether by sale, pledge, gift, or otherwise. Commencing on July 1, 1997, any

guaranteed balance may be transferred by the holder thereof; provided that the transfer does not

subject the corporation, the transferor, or the transferee to any registration or reporting

requirements under applicable federal and/or state securities laws; and provided further, that any

guaranteed balance transferred pursuant to this section may not be used by any transferee or

subsequent transferee as a set off or other reduction against any debt or liability to the

corporation, or any assignee or transferee of the corporation.

      (3) The guaranteed balances will not be evidenced by a certificate or other instrument.

The corporation shall maintain a record of the name and address of the owner of the guaranteed

balance and the amount of the guaranteed balance.

      (h) The corporation may:

      (1) Pre-pay any guaranteed balance with a principal amount of less than one thousand

dollars ($1,000) at any time;

      (2) Pre-pay the outstanding amount of all guaranteed balances at any time; and

      (3) Pre-pay all guaranteed balances on a pro-rata basis at any time. Pro-rata means a

distribution in the percentage that the aggregate amount of prepayment bears to the aggregate

amount of the outstanding principal balance of all guaranteed balances.

      (i) (1) All net proceeds of litigation, (after payment of all legal fees, costs, and expenses

arising in connection therewith) whether by settlement or suit, prosecuted by an eligible

institution, the receiver of an eligible institution and/or the corporation, shall be paid to the

corporation and shall be utilized by it as follows:

      (i) To pay the guaranteed balances in accordance with subsection (e)(3); and

      (ii) After the guaranteed balances have been paid in full, to pay the loan obligations or

bond indebtedness of the corporation.

      (2) The term "litigation," for the purposes of this subsection means all rights, claims and

causes of action against:

      (i) Any eligible institution;

      (ii) The Rhode Island share and deposit indemnity corporation;

      (iii) And/or any officers, directors, employees, accountants, attorneys, appraisers,

consultants, agents, or providers of professional services to the institution and/or the Rhode Island

share and deposit indemnity corporation.

      (j) (1) The corporation requires that any depositor entitled to receive any payment under

the terms of this chapter shall, in consideration of the corporation's making the payment and as a

condition precedent to the depositor's receiving the payment, and only to the extent of that

payment and any tolled or lost interest or consequential damages attributable to that payment,

execute a total and complete waiver and release of any and all rights, claims and causes of action,

of any nature whatsoever, which that depositor might have against the state or any of its officials

or employees in relation to the pro rata portion of any funds or accounts that the depositor may

have or may have had on deposit with any eligible institution.

      (2) Distributions as to distributable accounts arising from the assumed deposit liabilities

of the heritage loan and investment company are limited to those deposit liability claims which

have been allowed and validated by an unstayed order or judgment of the superior court sitting at

Providence county. Distributable accounts arising from deposit liability claims which have not

been allowed and validated by an unstayed order or judgment of the superior court as of June 30,

1992 shall be paid by the corporation within sixty (60) days of the receipt by the corporation of an

unstayed order or judgment of the superior court which allows and validates the claim. Payment

of distributable accounts pursuant to this subsection shall be in accordance with and in the same

manner and form as set forth in subsections (e)(1), (2) and (3).

      (k)(1) The provisions of subsections (e)(1) and (2) do not apply to this subsection. In the

event that substantially all of the deposit liabilities of the Davisville credit union are insured by

the federal deposit insurance corporation, the payment of any distributable account arising from

the assumption by the corporation of any uninsured portion of a deposit liability of the Davisville

credit union, which uninsured portion does not exceed ten percent (10%) of the deposit liability

existing as of the date of the insurance, shall be made by the establishment by the corporation of a

guaranteed balance equal to the amount of the distributable account. The amount of the

distributable account shall be determined by the corporation within thirty (30) days of the

corporation's assumption of the portion of the deposit liability. The guaranteed balance as

established in this subsection is payable in the same manner and on the same terms and conditions

as the guaranteed balance provided for in subsection (e)(3).

      (2) The guaranteed balance as established in this subsection is subject to the remaining

provisions of this section.

 

     42-116-33. Performance review committee. – (a) There is created a seven (7) member

performance review committee. The members shall be: (1) the governor or his or her designee;

(2) the speaker of the house of representatives or his or her designee; (3) the president of the

senate or his or her designee; (4) a minority party member of the general assembly to be

designated by the minority leader of the house of representatives and the minority leader of the

senate acting jointly; (5) one member selected by the board of directors of the Rhode Island

Society of Certified Public Accountants; (6) one member selected by the board of directors of the

Rhode Island Association of Realtors, Inc.; and (7) one member who shall be a depositor selected

by the Joint Committee on Small Business.

     (b) The committee shall meet and issue its biannual reports by February 15th and August

15th of each year. The document shall contain the following:

      (1) Information regarding the disposition of the assets and liabilities of the corporation;

      (2) Information regarding the interest and income, if any, earned by the corporation and

the administrative expenses of the corporation;

      (3) Information which updates projections as regards cash inflow and outflow;

      (4) Information as to the general fiscal condition of the state and how that condition

relates to the activities and operation of the corporation;

      (5) Information as to the principal amount of outstanding bonded indebtedness;

      (6) A review, which considers subdivisions (1) -- (5), of the schedule of payments and a

recommendation as to the acceleration or modification of the schedule;

      (7) A recommendation, if any, as to necessary and appropriate legislation; and

      (8) A brief summary of the document shall be published in a newspaper of general

circulation within the state on two (2) successive days.

 

     42-116-40. Court-approved settlements. – (a) Notwithstanding any provisions of law to

the contrary, a person, corporation, or other entity who has resolved its liability to the Rhode

Island Depositors' Economic Protection Corporation, the receiver of Rhode Island Share and

Deposit Indemnity Corporation or the receiver of any state-chartered financial institution in a

judicially-approved good faith settlement is not liable for claims for contribution or equitable

indemnity regarding matters addressed in the settlement. The settlement does not discharge any

other joint tortfeasors unless its terms provide, but it reduces the potential liability of the joint

tortfeasors by the amount of the settlement.

      (b) The provisions of this section apply solely and exclusively to settlements of liabilities

to the Rhode Island Depositors' Economic Protection Corporation, the receiver of the Rhode

Island Share and Deposit Indemnity Corporation and the receiver of any other state-chartered

financial institution and shall not be construed to amend or repeal the provisions of chapter 6 of

title 10 relating to contributions among joint tortfeasors, other than as specifically provided in this

section.

 

     42-116-41. Loan portfolio valuation. – (a) On or before the winter meeting of the

performance review committee, the corporation shall submit to the committee an assessment of

the current market value of the remaining loans and real estate owned. This assessment shall

contain a profile of the portfolio in sufficient detail to permit an informal valuation by an

investor. The assessment shall report the known transactions involving similar portfolios which

have been reported in the publications which report the results of auctions or sales of similar

portfolios and provide an analysis to the potential market reception of a theoretical decision by

the corporation to invite bids to sell the portfolio.

     (b) The portfolio profile will include a stratification of loans by performance status and

collateral type. Data will include the number of loans in each classification, the aggregate

principal balance, the "Legal Balance", the dollar weighted average rate of interest, dollar

weighted average delinquencies, and the dollar weighted average maturity. The profile is to be

consistent with those of similar portfolios which are offered by lenders to investors in the

institutional investment market.

     (c) Should comparable information provided be inconclusive as to the current market

value of the portfolio, the committee may recommend to the Depositors Economic Protection

Corporations' Board of Directors that the corporation seek an informal review of the potential

value of the portfolio by an investor within one hundred twenty (120) days of the committee's

winter meeting.

 

     SECTION 54. Section 42-119-4 of the General Laws in Chapter 42-119 entitled "Rhode

Island Commission on Women" is hereby amended to read as follows:

 

     42-119-4. Selection criteria. -- The commission shall be appointed in the following

manner:

      (a)(1) The governor shall appoint twelve (12) members for three (3) year terms on a

staggered basis with four (4) appointed each year. Terms shall be effective July 1;

      (b)(2) The president of the senate shall appoint three (3) senators, not more than two (2)

from the same political party;

      (c)(3) The speaker of the house shall appoint three (3) representatives, not more than two

(2) from the same political party;

      (d)(4) Consistent with the purpose, the commission shall designate eight (8) state

department directors who shall each appoint one commissioner for a three (3) year term on a

staggered basis effective July 1;

      (e)(5) Reappointments can be made and any vacancies shall be filled consistent with

initial appointments. All appointees shall have a commitment to working with issues relating to

women.

 

     SECTION 55. Sections 42-124-1, 42-124-2 and 42-124-3 of the General Laws in Chapter

42-124 entitled "Special Legislative Commission on Equal Pay and Comparable Worth in Public

and Private Employment" are hereby amended to read as follows:

 

     42-124-1. Establishment of commission. – (a) There is created a special legislative

commission on equal pay and comparable worth in public and private employment consisting of

twenty-five (25) members: four (4) of whom shall be from the house of representatives, not more

than three (3) from the same political party; one of whom shall have served on the 1986

comparable worth/pay equity commission, to be appointed by the speaker; four (4) of whom shall

be from the senate, not more than three (3) from the same political party; one of whom shall have

served on the 1986 comparable worth/pay equity commission to be appointed by the president of

the senate; two (2) of whom shall be appointed by the governor; one of whom shall be the human

resources director of the department of administration; one of whom shall be the human resources

program administrator; one of whom shall be the executive director of the Rhode Island

commission on women, or his/her appointee; one of whom shall be the executive director of the

human rights commission, or his/her appointee; one of whom shall be the chair or co-chair of the

economic equity committee of the Rhode Island commission on women, or his/her appointee; one

of whom shall be the director of labor and training, or his/her appointee; one of whom shall be the

executive director of the AFL-CIO, or his/her appointee; one of whom shall be the executive

director of AFSCME, or his/her appointee; one of whom shall be the state equal opportunity

administrator; one of whom shall be from the chamber of commerce federation; one of whom

shall be from the workforce 2000 council; one of whom shall be the executive director of the

league of cities and towns, or his/her appointee; one of whom shall be the director of research,

department of business and economics at the university of Rhode Island; one of whom shall be a

representative from NEARI, appointed by the president of the association; and one of whom shall

be a representative from AFT/AFL-CIO, appointed by the president of the association.

     (b) The composition of this commission shall endeavor, as far as practicable, to provide

diverse ethnic, cultural and gender representation of the state of Rhode Island.

 

     42-124-2. Purpose. – (a) The purpose of the commission is to study and to assess the

subject of Comparable Worth/Pay Equity in public and private employment in the state of Rhode

Island. Rhode Island recognizes the generally acceptable pay equity policies which guarantee that

people will receive the same salary for comparable worth. This study shall determine whether

there is evidence to suggest that the female dominated class of employees are under compensated

in comparison to the male dominated class of employees where the composite value of skill

effort, responsibility, interpersonal skills, accountability and working conditions are comparable.

     (b) The commission shall report its findings and recommendations with respect to state

government employment to the general assembly on or before June 30, 1994, and annually

thereafter, and shall report its findings and recommendations with respect to municipal

government and private sector employment on or before February 10, 1996, and annually

thereafter.

 

     42-124-3. Organization and terms. – (a) Forthwith upon the passage of this chapter, the

members of the commission shall meet at the call of the speaker of the house and organize and

shall select from among its members a chairperson.

     (b) Legislative appointments shall continue for the elected term and terminate upon non-

election. All other appointments shall be for three (3) years on a staggered basis. Initial terms

shall be determined by lot at the first meeting. Vacancies in the commission shall be filled in the

same manner as the original appointment.

 

     SECTION 56. Section 42-125-6 of the General Laws in Chapter 42-125 entitled "Rhode

Island Greenways Act of 1995" is hereby amended to read as follows:

 

     42-125-6. Powers and duties. -- The council has the following powers:

      (1) To be entitled to ask for and receive from any commission, board, officer or agency

of the state any information, cooperation, assistance, and advice as shall be reasonable and proper

in view of the nature of the council's functions;

      (2) To assess and evaluate the current programs and policies of the state as they relate to

the creation and maintenance of systems of greenways throughout the state and to make

recommendations regarding the coordination of activities within state government to create and

maintain systems of greenways as part of the state's twenty-first century infrastructure;

      (3) To make any recommendations that may be necessary to the state planning council to

maintain a greenways element of the state guide plan as described in section 42-11-10;

      (4) To make recommendations to the director of the department of Rhode Island

economic development corporation regarding the inclusion of greenways in programs to promote

tourism and encourage the location and development of recreational facilities as provided for in

section 42-63-2(a) [repealed];

      (5) To make recommendations to the director of the department of environmental

management regarding the inclusion of greenways in (1) the department's cooperation with the

department of Rhode Island economic development corporation in planning and promotional

functions relating to recreation as provided for in section 42-17.1-2(f), and (2) the department's

general functions relating to parks and recreation, preservation of wetlands and habitat, and

planning and development as provided for in section 42-17.1-4;

      (6) To make recommendations to the director of the department of transportation

regarding the inclusion of greenways in plans and implementation programs for transportation as

provided for in section 42-13-1;

      (7) To provide advice and assistance to political subdivisions, businesses, citizen groups,

and nonprofit organizations regarding the creation and maintenance of greenways;

      (8) To foster public involvement in greenways planning and development;

      (9) To apply for, contract for, and expend federal and other grants or assistance,

appropriate to the purposes of this chapter, and

      (10) To report its activities, findings, and recommendations to the governor and the

general assembly.

 

     SECTION 57. Section 42-128.1-6 of the General Laws in Chapter 42-128.1 entitled

"Lead Hazard Mitigation" is hereby amended to read as follows:

 

     42-128.1-6. Education. – (a) In order to achieve the purposes of this chapter, a statewide,

multifaceted, ongoing educational program designed to meet the needs of tenants, property

owners, realtors and real estate agents, insurers and insurance agents, local building officials, and

health providers and caregivers is hereby established.

      (1)(b) The governor, in conjunction with the department of health and the housing

resources commission, shall sponsor a series of public service announcements on radio,

television, and print media about the nature of lead hazards, the importance of lead hazard control

and mitigation, and the purposes and responsibilities set forth in this chapter. In developing and

coordinating this public information initiative the sponsors shall seek the participation and

involvement of private industry organizations, including those involved in real estate, insurance,

mortgage banking, and pediatrics.

      (2)(c) Within sixty (60) days after the regulations set forth in section 42-128.1-7 for lead

hazard control and mitigation go into effect, the housing resources commission in conjunction

with the department of health shall:

      (i)(1) Create culturally and linguistically appropriate material outlining the rights and

responsibilities of parties affected by this chapter;

      (ii)(2) Establish guidelines and a trainer's manual for a not more than three (3) hour lead

hazard control awareness seminar for rental property owners or designated persons, which shall

be forwarded to all public and private colleges and universities in Rhode Island, to other

professional training facilities, and to professional associations and community organizations

with a training capacity, with the stipulation this seminar be offered for a maximum fee of fifty

dollars ($50.00) per participant. The housing resources commission shall approve the proposals to

offer the seminar from institutions, provided those proposals are consistent with the guidelines.

An electronic version of this awareness seminar shall be created and approved by the housing

resources commission for computer Internet access. Said awareness seminar shall also be

produced and made available in both VHS and DVD format for rental or purchase at a reasonable

cost not to exceed five dollars ($5.00) for the rental version and fifteen dollars ($15.00) for the

purchased version. Said seminar shall be available to tenants, property owners and other

interested parties.

      (iii)(3) Adopt rules for the dissemination of information about the requirements of this

chapter to all prospective owners of pre-1978 dwellings during the real estate transaction,

settlement, or closing;

      (iv)(4) Solicit requests, to the extent that these partnerships are not already established,

to enter into ongoing, funded partnerships, to provide specific counseling information services to

tenants and affected parties on their rights and responsibilities with regard to lead hazards and

lead poisoning.

      (3)(d) The department of business regulation shall, with regard to its responsibilities for

the profession of real estate brokers and salespersons, adopt rules, with the concurrence of the

housing resources commission and the department of health which shall be effective not later than

June 30, 2004; (i)(1) requiring proof of reasonable familiarity with the knowledge of duties and

responsibilities under the provisions of the Lead Poisoning Prevention Act, chapter 24.6 of title

23, and this chapter, for the licensure or renewal of licenses of real estate brokers and

salespersons in accordance with section 5-20.5-6 after July 1, 2004; and (ii)(2) providing,

pursuant to section 5-20.5-18, an educational program for real estate brokers and salespersons

regarding such duties and responsibilities.

      (4)(e) The housing resources commission, in conjunction with the department of health,

is hereby authorized to develop, offer, engage in, contract for and/or provide any other

educational or informational programs that they may deem necessary to accomplish the purposes

of this chapter, including, but not limited to: programs to assist families to find housing that is

lead free, lead safe or lead hazard mitigated or abated; to train lead hazard mitigation inspectors

and local building officials and persons engaged in renovating and/or improving housing about

controlling or mitigating lead hazards in pre-1978 housing. Said programs shall provide

information about lead hazard mitigation requirements at retail hardware and paint stores and

home-improvement centers, including, as a minimum, signs of sufficient size with large enough

lettering to be easily seen and read, which contains the following language:

      WARNING

      Use of abrasive material (sandpaper, steel wool, drill disks and pads, etc.) in your home

to remove paint may increase the risk of childhood lead poisoning. For more information please

contact the Rhode Island housing resources commission or department of health.

 

     SECTION 58. Section 42-137-5 of the General Laws in Chapter 42-137 entitled "The

Select Commission on Race and Police-Community Relations Act" is hereby amended to read as

follows:

 

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

      (a)(1) Analyze and recommend changes that will improve police-community relations in

Rhode Island.

      (b)(2) Study and recommend changes needed to statutes, ordinances, institutional

policies, procedures and practices deemed necessary to:

      (1)(i) Improve law enforcement work and accountability;

      (2)(ii) Reduce racism;

      (3)(iii) Enhance the administration of justice; and

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

      (c)(3) 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)(4) 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)(5) 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)(6) Analyze, review, recommend, assist in and monitor changes to police policies,

procedures and practices related to:

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

      (2)(ii) The level and quality of diversity training, sensitivity awareness and cultural

competency;

      (3)(iii) The level and quality of efforts related to building and improving overall

community relations;

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

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

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

      (7)(vii) Legislation reforming police policies, practices, or procedures involving

community relations.

      (g)(7) To assist the select commission in its duties pursuant to subsection (f)(6), all

police departments shall submit to the select commission on an annual basis beginning on January

15, 2004, and for six (6) 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 sections 31-21.1-4 and 31-21.2-6, and to otherwise implement any recommendations of that

study. The reports shall be public records.

      (h)(8) Collect and publish data regarding complaints of police misconduct pursuant to

section 31-21.2-8.

 

     SECTION 59. Sections 42-138-1, 42-138-2 and 42-138-3 of the General Laws in Chapter

42-138 entitled "The Rhode Island Abraham Lincoln Bicentennial Commission" are hereby

amended to read as follows:

 

     42-138-1. Legislative findings. -- It is found and declared by the general assembly as

follows:

     (1) That Abraham Lincoln, the sixteenth President of the United States, was one of this

nation's most outstanding leaders;

     (2) That Abraham Lincoln was born on February 12, 1809, to Thomas and Nancy Hanks

Lincoln, and rose from humble circumstances to steer this nation through the Civil War, one of

the greatest crises of its history;

     (3) That President Lincoln was instrumental in ending slavery in these United States;

     (4) That in 2009, this nation will celebrate the bicentennial of Abraham Lincoln's birth;

     (5) That the United States Congress has passed legislation to create the Abraham Lincoln

Bicentennial Commission to study and recommend suitable federal activities to honor Abraham

Lincoln during his bicentennial year; and

     (6) That it is appropriate for the State of Rhode Island to honor and create activities

relating to Abraham Lincoln's visit to Providence and Woonsocket, Rhode Island in 1860, to plan

and carry out its own bicentennial tributes to Abraham Lincoln, and to coordinate those activities

with those of the federal government.

 

     42-138-2. Establishment of commission. – (a) There is created the State of Rhode Island

Abraham Lincoln Bicentennial Commission, which shall be associated with the Rhode Island

Historical Society for administrative purposes. The commission shall be composed of twenty-one

(21) members, as follows:

     (1) Two (2) members of the House of Representatives, not more than one from the same

political party appointed by the Speaker of the House;

     (2) Two (2) members of the Senate, not more than one from the same political party

appointed by the President of the Senate;

     (3) One member from the Rhode Island Council on the Humanities, appointed by the

Executive Director of the Council;

     (4) One member from the Economic Development Corporation, appointed by the

Executive Director;

     (5) One member from the Rhode Island Historical Society, appointed by the Executive

Director of that organization;

     (6) One member from the Historical Preservation and Heritage Commission, appointed

by the Executive Director of the Commission;

     (7) One member from the Rhode Island State Council on the Arts, appointed by the

Executive Director;

     (8) One member from the Heritage Harbor Museum, appointed by the Executive Director

of the museum;

     (9) One member from the Rhode Island Civil Rights Roundtable, appointed by the

Executive Director of that organization;

     (10) One member from the Lincoln Group of Boston, appointed by the President of that

organization;

     (11) One member from the Abraham Lincoln Bicentennial Commission established by

the United States Congress, appointed by the concurrence of the chairs of that Commission;

     (12) One member from the Board of Regents for Elementary and Secondary Education,

appointed by the Chairperson of the Board;

     (13) One member from the Board of Governors for Higher Education, appointed by the

Chairperson of the Board;

     (14) One member from the John Hay Library of Special Collections at Brown University

which houses the McLellan Lincoln Collection, appointed by the President of Brown University;

     (15) One member from the Providence Chapter of the NAACP, appointed by the

Executive Director of that organization; and

     (16) Four (4) public members from the state at large with a demonstrated interest in

history and substantial knowledge and appreciation of Abraham Lincoln, appointed by the

Governor.

     (b) The chair of the commission shall be elected from among the membership by the

commission members.

 

     42-138-3. Powers and duties of commission. -- The State of Rhode Island Abraham

Lincoln Bicentennial Commission shall:

      (a)(1) Study and recommend activities that may be carried out by the State of Rhode

Island to honor Abraham Lincoln on the occasion of the bicentennial anniversary of his birth;

      (b)(2) Educate Rhode Island residents and the nation about the life of Abraham Lincoln

and his visit to the State of Rhode Island;

      (c)(3) Assist local governments and organizations with planning, preparation, and grant

applications for bicentennial events and projects;

      (d)(4) Coordinate federal, state, and local bicentennial activities occurring in Rhode

Island;

      (e)(5) Plan and implement appropriate events, including celebrations and educational

initiatives to commemorate the bicentennial;

      (f)(6) Perform other duties as necessary to highlight Rhode Island's role in the life of

Abraham Lincoln; and

      (g)(7) Seek federal grants and philanthropic support for bicentennial activities.

 

     SECTION 60. Sections 42-139-2 and 42-139-6 of the General Laws in Chapter 42-139

entitled "Executive Branch and Public Corporation Lobbying" are hereby amended to read as

follows:

 

     42-139-2. Definitions. -- For the purpose of this chapter the following definitions shall

apply:

      (1) (a)(i) "Lobbying" means acting directly or soliciting others to act for the purpose of

promoting, opposing, or influencing: (i)(A) any policy-making decisions or policy-making

actions of the executive branch of government or of public corporations; or (ii)(B) any decisions

or actions on the part of the executive branch of government or any public corporation involving

the sale, lease or other alienation or encumbrance of any real property owned or leased by the

state or any public corporation.

      (b)(ii) None of the following activities shall constitute "lobbying" for purposes of this

chapter:

      (i)(A) Participation in or attendance at a rally, protest or other public assemblage

organized for the expression of political or social views, positions or beliefs;

      (ii)(B) The solicitation of information about the rules, procedures, forms, programs or

requirements of a department, agency, board, commission or public corporation;

      (iii)(C) Advocacy in connection with matters involving the determination of the rights,

duties or obligations of an individual made on a case-by-case basis;

      (iv)(D) The issuance and dissemination of any publication, including data, research or

analysis on public policy issues that is available to the general public, and including also any

news media reports, editorials, commentary or advertisements;

      (v)(E) Participation in a governmental advisory committee or task force;

      (vi)(F) Representation of one's own, wholly owned business entity;

      (vii)(G) Participation in a bid conference or responding to request for proposals issued

by a state agency or department or by a public corporation;

      (viii)(H) Responding to a subpoena or to a request for information made by a state

agency or department or by a public corporation;

      (ix)(I) Representation of a client in connection with the granting or denial of a permit,

license or benefit, or with potential disciplinary action against the client; or

      (x)(J) Participation in any proceeding pursuant to chapter 35 of this title.

      (2) (a)(i) "Lobbyist" means a person who is employed and receives payment, or who

contracts for economic compensation, for the purpose of lobbying, or a person who is principally

employed for governmental affairs by another person or governmental entity to lobby on behalf

of that other person or governmental entity.

      (b)(ii) None of the following persons shall be deemed a "lobbyist" for purposes of this

chapter:

      (i)(A) A member of the Rhode Island Bar participating in an administrative or judicial

proceeding;

      (ii)(B) A qualified expert witness testifying in an administrative proceeding;

      (iii)(C) An employee of any branch of federal, state or local government or of any public

corporation to the extent that he or she seeks only to influence or affect decisions or actions of

other governmental entities and public corporations solely on its own behalf;

      (iv)(D) Any member of the general assembly, any general officer of the state, any head

of any executive department of state government, and any judge of this state acting in his or her

official capacity.

      (3) "Compensation" means any remuneration received or to be received for services

rendered as a lobbyist, whether in the form of a fee, salary, forbearance, forgiveness,

reimbursement for expenses, or any other form of recompense, and any combination thereof.

Where lobbying is incidental to a person's regular employment, his or her compensation for

lobbying shall be reported as such and the lobbyist shall record the dollar amount of that portion

of his or her compensation that is attributed to the time spent pursuing lobbying activities. In such

instances, it shall not be necessary to disclose one's total salary or the percentage of one's time

spent on lobbying. The lobbyist shall be required to disclose only his or her best good faith

estimate of the dollar amount of which corresponds to the portion of his or her time spent on

lobbying activities.

      (4) "Person" means an individual, firm, business, corporation, association, partnership,

or other group.

      (5) "Public corporation" means a corporate entity within the purview of sections 35-18-

2(9) and 35-20-5(4) which is considered a governmental agency but which has a distinct legal

existence from the state or any municipality, does not constitute a department of state or

municipal government, and has the ability to sue or be sued in its own name.

 

     42-139-6. Financial reports. -- (a) (1) Every person, corporation, or association that

engages any person to act as a lobbyist concerning executive or public corporation matters, and

the lobbyist, shall individually file with the secretary of state a complete and detailed report of all

compensation paid to the lobbyist for lobbying, including the total amount expended for lobbying

purposes, and an itemization of any expenditure, gift, or honorarium of twenty-five dollars

($25.00) or more for each occurrence paid or incurred by the person, corporation, or association

or lobbyist for the specific purpose of promoting or opposing in any manner action by members

of the executive branch or of public corporations. These reports shall include the names of the

persons receiving or in whose behalf the expenditures have been made, and the reason, time, and

place of the expenditures.

      (2)(b) The initial report shall be filed by the person, corporation, or association having

engaged any person to act as a lobbyist and by the lobbyist at the time of their initial registration,

and updated reports shall be filed with the secretary of state semi-annually. The updated reports

shall be filed no later than thirty (30) days after the end of each reporting period, and shall include

expenditures for the period from January 1 through June 30, and July through December 31,

respectively.

      (3)(c) All reports shall be on a form prescribed by the secretary of state, and the reports

shall be open for public inspection.

      (4)(d) In the event no compensation has been paid or received, and no expenses have

been paid or incurred, an annual statement to that effect may be filed with the secretary of state in

lieu of the report form.

 

     SECTION 61. Section 45-9-3 of the General Laws in Chapter 45-9 entitled "Budget

Commissions" is hereby amended to read as follows:

 

     45-9-3. Budget and Review Commission. -- (a) (1) Notwithstanding the provisions of

sections 45-9-1 and 45-9-2 or any other general or special laws of the state or charter provisions,

the general assembly vests in the director of the state department of administration (hereinafter

"director") the power to authorize, create, and establish a budget and review commission in any

town or city where the director finds that the town or city's bond rating has been assigned by one

or more recognized rating agencies to a rating which is below investment grade and there is an

imminent threat of default on any or all of its debt obligations.

      (2) Whereupon the director shall authorize said budget and review commission, to

convene specifically to deal with the aforementioned town or city, that shall consist of the chief

executive officer of the town or city; the president of the town or city council; three (3) public

members from the affected municipality, at least one of whom shall be qualified by training or

experience in the fields of finance or accounting, to be appointed by the governor, with the advice

and consent of the senate; two (2) ex-officio state officials who shall be the director, or his or her

designee from the department of administration; and one member of the public finance

management board to be appointed by the governor who, in making his or her appointment, shall

give due consideration to the recommendation of the chair of the public finance management

board, with the advice and consent of the senate.

      (3) No one shall be eligible for appointment unless he or she is a resident of this state.

      (4) Where there is no chief executive officer of the town or city, the vice president of the

town council or city council shall serve on the commission. The director of the state department

of administration shall serve as chair of the commission.

      (5) The commission may elect from among its members such other officers as they deem

necessary.

      (6) Four (4) or more members of the commission shall constitute a quorum and the vote

of a majority of said quorum at any meeting shall be required for action. No vacancy in the

membership of the commission shall impair the right of a quorum to exercise all of the rights and

perform all of the duties of the commission.

      (7) Newly appointed and qualified commission members of the municipality shall,

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

developed with commission approval and conducted by the chair or his or her designee and shall

include instruction in the subject area of chapter 9 of this title and chapters 46 of title 42, chapter

14 of title 36, and chapter 2 of title 38 of Rhode Island general laws; and the commission's rules

and regulations.

      (8) Public members of the commission shall be removable by the governor pursuant to

section 36-1-7 for cause only, and removal solely for partisan or personal reasons unrelated to

capacity or fitness for the office shall be unlawful.

      (9) The powers of the budget and review commission shall be to impose taxes and to

make appropriations for the expenditure of moneys, for the purpose of adopting a budget and, for

the purpose of maintaining a balanced budget, the budget and review commission shall make

reductions or suspensions in the appropriations to any or all departments, offices or other

agencies of town or city government as will prevent a deficit for the fiscal year. The budget and

review commission shall be subject to the open meetings and open records law. The budget and

review commission shall remain in office until that time as the chief executive officer of the town

or city and the town or city council petitions the director of the state department of administration

to disband the budget and review commission.

      (b) (1) The budget and review commission shall commence its work by examining the

financial and operating condition of the city or town and shall also advise the chief executive

officer, city or town council and the fiscal officials of the city or town on the formulation of

adequate budget and budgetary controls.

      (2) Reporting Requirements. - Within ninety (90) days of its being disbanded as

provided for in section 45-9-3(a)(10)(9), the budget and review commission shall approve and

issue a report detailing its findings and recommendations. This report shall be submitted to the

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

secretary of state of its activities during that fiscal year. The report shall provide: an operating

statement summarizing meetings or hearings held, subjects addressed, decisions rendered, rules or

regulations promulgated, studies conducted, policies and plans developed, approved, or modified,

and programs administered or initiated; a consolidated financial statement of all funds received

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

and a summary of any clerical, administrative or technical support received; a summary of

performance during the course of its existence, including accomplishments, shortcomings and

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

authority of the board; a summary of any training courses held pursuant to section 45-9-3(a)(7); a

briefing on anticipated activities in the upcoming fiscal year; and findings and recommendations

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

secretary of state's websites as prescribed in section 42-20-8.2.

      (3) The examination and report shall be completed and published no sooner than three

(3) weeks after the formation of the budget and review commission. The commission shall

exercise any of the powers set forth in this section only after the examination and publication of

the commission's report.

 

     SECTION 62. Section 46-25-10 of the General Laws in Chapter 46-25 entitled

"Narragansett Bay Commission" is hereby amended to read as follows:

 

     46-25-10. Acquisition of facilities from municipalities. -- (a) The commission shall

acquire the city of Providence Fields Point sewage treatment plant, as well as interceptors,

combined sewer overflow facilities, force mains, and appurtenant facilities, and the land,

property, easements, and other interests in property from municipalities within the district as may

be necessary or desirable in its discretion to carry out the duties under this chapter.

      (b) The acquisition of the treatment plant, facilities, interceptors, combined sewer

overflow facilities, mains, and other appurtenant facilities, and the lands, property, easements, or

other interests in property shall be paid for solely by user charges and fees to be assessed by the

commission in accordance with this chapter. As part of the acquisition, the commission may

agree to assume payment of financial obligation debt service liabilities of the city of Providence

for long term bonded debt, that is, for debt with maturity schedules of not less than twenty (20)

years incurred for capital improvement of the sewage treatment facilities, as determined in the

sole discretion of the commission, pursuant to findings of the auditor general, in an amount not to

exceed fourteen million dollars ($14,000,000); provided, however, that the payment of the debt

service liabilities shall be paid solely out of user charges and fees to be assessed by the

commission in accordance with this chapter. User charges assessed pursuant to this section shall

be in addition to those charges under the authority of section 46-25-5(i)(9), and shall be

reasonable and just and subject to the approval of the public utilities commission.

 

     SECTION 63. Sections 24-10-18 and 24-10-20 of the General Laws in Chapter 24-10

entitled "Freeways" are hereby amended to read as follows:

 

     24-10-18. Backing up prohibited. -- Any person who backs up a motor vehicle on a

roadway or shoulder of any freeway within the state, shall be guilty of a misdemeanor and shall

be punished by a fine of not more than fifty dollars ($50.00) seventy-five dollars ($75.00).

 

     24-10-20. Park and ride lots. -- Park and ride lots, also known as fringe and

transportation corridor parking facilities, are facilities which are intended to be used for the

temporary parking of passenger vehicles and which are located and designed so as to facilitate the

safe and convenient transfer of persons traveling in passenger vehicles to and from high

occupancy vehicles and/or public mass transportation systems including rail. Any other vehicle

parked and/or property, including but not limited to, boats or commercial type trailer boxes,

stored at those lots will be fined and towed at owner's expense. State and local law enforcement

officials have authority to ticket and tow any vehicles under this statute and the fines shall be fifty

dollars ($50.00) seventy-five dollars ($75.00) per occurrence.

 

     SECTION 64. Section 31-16-6.1 of the General Laws in Chapter 31-16 entitled "Starting,

Stopping, and Turns" is hereby amended to read as follows:

 

     31-16-6.1. Penalties. -- Any person who violates the provisions of section 31-16-2

pertaining to the right-of-way of pedestrians, upon conviction, shall be sentenced to pay a fine of

not more than fifty dollars ($50.00) seventy-five ($75.00).

 

     SECTION 65. Sections 31-17-1, 31-17-2, 31-17-3, 31-17-4, 31-17-5 and 31-17-5.1 of the

General Laws in Chapter 31-17 entitled "Right-of-Way" are hereby amended to read as follows:

 

     31-17-1. Right-of-way in absence of signs or signals. -- (a) The driver of a vehicle

approaching an intersection shall yield the right-of-way to a vehicle which has entered the

intersection from a different highway.

      (b) When two vehicles enter an intersection from different highways at approximately

the same time, the driver of the vehicle on the left shall yield the right-of-way to the vehicle on

the right.

      (c) The right-of-way rules declared in subsections (a) and (b) of this section are modified

at through highways and otherwise as stated in this chapter.

     (d) Violations of this section are subject to the fines enumerated in section 31-41.1-4.

 

     31-17-2. Vehicle turning left or right. -- The driver of a vehicle within an intersection

intended to turn to the left or right shall yield the right-of-way to any vehicle approaching from

the opposite direction which is within the intersection or so close to it as to constitute an

immediate hazard, or shall yield to a pedestrian intending to cross within a crosswalk which the

driver of the vehicle must travel to make the left or right turn. The driver, having so yielded and

having given a signal when and as required by chapter 16 of this title, may make the left or right

turn, and the drivers of all other vehicles approaching the intersection from the opposite direction

shall yield the right of way to the vehicle making the left or right turn. Violations of this section

are subject to the fines enumerated in section 31-41.1-4.

 

     31-17-3. Intersection with through highway. -- The driver of a vehicle shall stop at the

entrance to a through highway and shall yield the right-of-way to other vehicles which have

entered the intersection from the through highway, or which are approaching so closely on the

through highway as to constitute an immediate hazard, but the driver having so yielded may

proceed and the drivers of all other vehicles approaching the intersection on the through highway

shall yield the right- of-way to the vehicle so proceeding into or across the through highway.

Violations of this section are subject to the fines enumerated in section 31-41.1-4.

 

     31-17-4. Vehicle entering stop or yield intersection. -- (a) Preferential right-of-way at

an intersection may be indicated by stop signs or yield signs.

      (b) Except when directed to proceed by a police officer or traffic-control signal, every

driver of a vehicle approaching a stop intersection indicated by a stop sign shall stop at a clearly

marked stop line, but if none, before entering the crosswalk on the near side of the intersection,

or, if none, then at the point nearest the intersecting roadway where the driver has a view of

approaching traffic on the intersecting roadway before entering the intersection. After having

stopped, the driver shall yield the right-of-way to any pedestrian intending to cross the lane of

traffic in a crosswalk or any vehicle which has entered the intersection from another highway or

which is approaching so closely on the highway as to constitute an immediate hazard during the

time when the driver is moving across or within the intersection.

      (c) The driver of a vehicle approaching a yield sign shall, in obedience to the sign, slow

down to a speed reasonable for the existing conditions and, if required for safety to stop, shall

stop at a clearly marked stop line, but if none, before entering the crosswalk on the near side of

the intersection, or, if none, then at the point nearest the intersecting roadway where the driver

has a view of approaching traffic on the intersecting roadway. After slowing or stopping, the

driver shall yield the right-of-way to any pedestrian intending to cross the lane of traffic in a

crosswalk or any vehicle in the intersection or approaching on another highway so closely as to

constitute an immediate hazard during the time the driver is moving across or within the

intersection.

     (d) Violations of this section are subject to the fines enumerated in section 31-41.1-4.

 

     31-17-5. Entering from private road or driveway. -- The driver of a vehicle about to

enter or cross a highway from a private road or driveway shall yield the right-of-way to all

vehicles approaching on the highway and to all pedestrians attempting to cross the private road

driveway or highway. Violations of this section are subject to the fines enumerated in section 31-

41.1-4

 

     31-17-5.1. Penalties. -- Any person who violates any provision of sections 31-17-1 -- 31-

17-5, pertaining to the right- of-way of pedestrians, upon conviction, shall be sentenced to pay a

fine of not more than fifty dollars ($50.00). seventy-five ($75.00).

 

     SECTION 66. This act shall take effect upon passage.

     

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LC01537/SUB B

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