Chapter 145

2008 -- H 7800 SUBSTITUTE A

Enacted 07/01/08

A N A C T

RELATING TO STATE DEPARTMENTS -- DEPARTMENT OF REVENUE

Introduced By: Representatives Ehrhardt, Mumford, Long, Story, and Savage

Date Introduced: February 26, 2008

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 22-12-1.1 and 22-12-3 of the General Laws in Chapter 22-12

entitled "Fiscal Notes" are hereby amended to read as follows:

22-12-1.1. Fiscal notes for administrative rules. -- Whenever a state department or

agency proposes to adopt administrative rules in accordance with the provisions of chapter 35 of

title 42, which rules affect the state or any city or town financially, the proposed rules shall be

accompanied by a fiscal note. The budget officer shall be responsible, in cooperation with these

agencies, for the preparation of the fiscal note, except that the department of revenue

administration, in consultation and cooperation with the Rhode Island League of Cities and

Towns, shall be responsible for the preparation of the fiscal note for bills affecting cities and

towns. Fiscal notes shall be returned to the state department or agency proposing to adopt

administrative rules within ten (10) calendar days of when the request was made. Copies of all

fiscal notes for administrative rules shall be forwarded to the chairperson of the house finance

committee, the chairperson of the senate finance committee, house fiscal advisor and senate fiscal

advisor.

22-12-3. Request for fiscal notes. -- Fiscal notes shall only be requested by the

chairperson of the house or senate finance committee upon being notified by another committee

chairperson, the sponsor of the bill or resolution, or in the case of bills or resolutions affecting

cities or towns, by the Rhode Island League of Cities and Towns in addition to the individuals

referred to in this section, of the existence of any bill or resolution described in section 22-12-1.

Requests shall be made in the form and substance as may be requested by the finance committee

chairperson, and shall be forwarded through the house or senate fiscal adviser to the state budget

officer, who shall determine the agency or agencies affected by the bill, or for bills affecting cities

and towns to the chief executive official of the cities and the towns, the Rhode Island League of

Cities and Towns, and the department of revenue administration. The budget officer shall then be

responsible, in cooperation with these agencies, for the preparation of the fiscal note, except that

the department of administration, in consultation and cooperation with the Rhode Island League

of Cities and Towns, shall be responsible for the preparation of the fiscal note for bills affecting

cities and towns.

     SECTION 2. Section 31-1-16 of the General Laws in Chapter 31-1 entitled “Definitions

and General Code Provisions” is hereby amended to read as follows:

31-1-16. Administrator and division. – (a) "Administrator" means the administrator of

the division of motor vehicles of this state.

     (b) "Division" means the division of motor vehicles within the department of

administration revenue of this state acting directly or through its authorized officers and agents.

     SECTION 3. Sections 31-2-4, 31-2-20 and 31-2-23 of the General Laws in Chapter 31-2

entitled “Registry of Motor Vehicles” are hereby amended to read as follows:

31-2-4. Rules and regulations – Exception to authority. – The administrator of the

division of motor vehicles, department of administration revenue is authorized to adopt and

enforce those rules and regulations that may be necessary to carry out the provisions of chapters 1

– 27 of this title, and any other laws the enforcement and administration of which are vested in

the division of motor vehicles, including rules and regulations concerning specialized testing and

standards for operators of commercial vehicles; provided, however, that nothing contained in this

section shall be construed to authorize the administrator to charge any monetary fee for a license

or permit to utilize a flashing light by any volunteer fire department or volunteer ambulance

squad.

31-2-20. Registration and license information – Fee. – The division of motor vehicles,

department of administration revenue shall, upon request, furnish registration and license

information to the public. The division shall collect ten dollars ($10.00) for each request.

However, if the request is made by any governmental agency, bureau or department, the division

shall collect no fee. All nongovernmental inquiries must be accompanied by a written statement

of purpose.

31-2-23. Denial of license or registrations for nonpayment of delinquent child

support. – (a) The department of human services administration, division of taxation, child

support enforcement shall periodically within each year furnish the division of motor vehicles,

department of administration revenue with a list or compilation of names of individuals, together

with such other identifying information and in such form as the administrator of the division of

motor vehicles shall require, who as of the date of the list or compilation, have an unpaid child

support order arrearage in excess of five hundred dollars ($500) as shown on the Rhode Island

family court/department of human services administration division of taxation, child support

enforcement computer system ("CSE system"). For purposes of this section, the terms used in this

section shall be given the meaning and definitions specified in § 15-16-2. The department of

human services shall, at times and in the manner prescribed by the administrator of the division of

motor vehicles, furnish to the division of motor vehicles information relating to the subsequent

payment of those child support order arrearages by or on behalf of the individuals, and the

division shall remove the name of the individual(s) from the list.

     (b) No individual whose name appears on the list or compilation referred to in subsection

(a) of this section, and whose name has not been subsequently removed from the list, shall be

permitted to (1) register or renew a registration of any motor vehicle and/or (2) obtain an original

license or renewal of a license to operate a motor vehicle, until all child support order arrearages

have been paid in full or a satisfactory arrangement for payment has been made with the family

court, and payment has been certified to the division of motor vehicles by the department of

human services administration division of taxation, child support enforcement.

     (c) The identifying information furnished by the department of human services

administration division of taxation, child support enforcement to the division of motor vehicles

shall not include individuals' social security numbers.

(d) A refusal by the division of motor vehicles to register or renew a registration of any motor

vehicle and/or issue an original license or renew a license to operate a motor vehicle is a final

determination for purposes of chapter 35 of title 42.

[See 12-1-15 of the General Laws.]

     SECTION 4. Sections 31-3-28, 31-3-31 and 31-3-32 of the General Laws in Chapter 31-3

entitled “Registration of Motor Vehicles” are hereby amended to read as follows:

31-3-28. Rules and regulations as to plates. – (a) The administrator of the division of

motor vehicles is authorized and empowered to make, alter, or amend, such rules and regulations

that he or she may deem necessary, pertaining to the use, size, design, color scheme, and the

material to be used in the manufacture of the number plates to be displayed on automobiles,

motor trucks, trailers, semi-trailers, or other motor vehicles, except that at the next general

issuance and each subsequent issuance. To promote safety and to facilitate the identification of

registration plate letters and numerals at night, the department of administration revenue shall

require that all registration plates shall be treated with special materials so as to make the

background fully reflective and the letters and numerals on them readable at night for a minimum

distance of one hundred feet (100') with other illumination. An additional fee of one dollar

($1.00) shall be payable upon the initial issuance of the above described illuminated plates.

     (b) All rules and regulations made under the provisions of this section shall, after being

approved by the governor and published at least once in each county of the state, have the effect

of law.

31-3-31.  Registration of farm vehicles. – (a) Farm vehicles, as defined in § 31-1-8,

equipped with rubber tires while being used in farming and operated on highways shall be

registered on a form furnished by the administrator of the division of motor vehicles and shall be

assigned a special number plate with a suitable symbol or letter indicating the usage of the farm

vehicle. The use of the number plates shall be confined to the period of one year.

     (b) The director of the department of administration revenue shall promulgate rules and

regulations for the inspection of farm vehicles.

31-3-32. Expiration of registration. – Every vehicle registration under chapters 3 – 9 of

this title and every registration card and registration plate issued under this chapter shall expire at

midnight on the thirty-first (31st) day of March of each year, except that the director of the

department of administration revenue, division of motor vehicles shall implement a staggered

registration system and a staggered distribution system for fully reflective plates required to be on

all vehicles pursuant to § 31-3-10. Implementation of the staggered registration system and

distribution system shall be by rules and regulations promulgated by the director of

administration revenue, division of motor vehicles. Every registration card and registration plate

issued to apportioned vehicles shall expire on the thirty-first (31st) day of May of each year. A

fee for the initial issuance of fully reflective plates and each reissuance thereafter shall be charged

in accordance with § 31-6-1(a). However, the requirements for the reissue of fully reflective

plates shall apply only to those standard plates described in § 31-3-11 and not to plates authorized

by any other section of the general or public laws. Violations of this section are subject to fines

enumerated in § 31-41.1-4.

     SECTION 5. Sections 31-5-1, 31-5-2, 31-5-2.1, 31-5-12, 31-5-21, 31-5-22, 31-5-25, 31-

5-26 and 31-5-38 in Chapter 31-5 entitled “Dealers’, Manufacturers’ and Rental Licenses” are

hereby amended to read as follows:

31-5-1.  Definitions. – (a) Whenever the words "licensor" and/or "department" are used

in chapters 5 and 5.1 of this title, they shall mean the "department of administration revenue".

31-5-2.  Duties of department of administration. – Duties of department of revenue. -

- The department of administration revenue shall issue the licenses provided for in §§ 31-5-5 –

31-5-9 and § 31-5-34. The department of administration revenue shall have supervision over the

licenses in respect to all the provisions of §§ 31-5-1 – 31-5-20 and §§ 31-5-33 – 31-5-39, and

shall have power to make and to issue rules and regulations to fulfill the purposes of those

chapters and to protect public interest. The department shall have power to set from time to time

the maximum number of plates to be issued to each dealer after due investigation and after giving

due consideration to the number of plates reasonably required for the operation of the business by

the dealer. The department shall also have the power to define unfair practices by licensees. All

the provisions of §§ 31-5-1 -31-5-20, and §§ 31-5-33 -31-5-39 shall be administered by the

department.

31-5-2.1. Motor vehicle dealers license and hearing board. – (a) A board composed of

a total of five (5) members, two (2) of which shall be licensed automobile dealers, one new car

Rhode Island licensed automobile dealer, and one used car Rhode Island licensed automobile

dealer, each to serve a three (3) year term; one active Rhode Island state police officer appointed

by the superintendent of Rhode Island state police and shall serve a five (5) year term; one active

employee of the Rhode Island department of administration revenue appointed by the director of

administration revenue shall serve a five (5) year term, and one licensed Rhode Island attorney in

good standing shall serve a seven (7) year term. The two (2) automobile dealers and attorney shall

be appointed by the governor. The board shall be known as the motor vehicle dealers license and

hearing board.

     (b) The board shall issue the license provided for in §§ 31-5-5 -- 31-5-9 and § 31-5-34.

The board shall have supervision over the license with respect to all of the provisions of §§ 31-5-

1 -- 31-5-39 and shall have the power to promulgate rules and regulations to fulfill the purposes

of this chapter and to protect the public interest. The board shall have the power to set, from time

to time, the maximum number of plates to be issued to each dealer after due investigation and

after considering the number of plates reasonably required for the operation of the dealers

business, and shall have the power to declare and define what constitutes a licensee. The

provisions of §§ 31-5-1 -- 31-5-20, and §§ 31-5-33 -- 31-5-39 shall be administered by the board

or by any of its duly authorized representatives.

     (c) The board shall have all of the same powers, duties, and responsibilities of the

previous Rhode Island dealers hearing board established by the director of the department of

revenue transportation.

     (d) The board shall constitute an agency and shall follow the Administrative Procedure

Act, chapter 35 of title 42, and its decisions are appealable to the director of administration. The

director's decision shall be appealable to the superior court.

     (e) A member of the board may be removed for cause by the director of administration

revenue after a hearing conducted by the director determining that cause exists and a written

decision explaining the reason for the removal. The director's decision of removal shall be

appealable to the superior court.

     (f) The members of the Rhode Island dealers hearing board serving as of August 31, 1993

shall serve out their respective terms of office and will remain on the motor vehicle dealers

license and hearing board until their respective terms expire and a subsequent appointment is

made by the governor, or respective appointing authority. If a vacancy occurs on the board for

any reason, an individual shall be appointed according to the procedures set forth in subsection

(a) of this section and this individual will serve out the remainder of the unexpired term of the

vacancy.

     (g) The director of administration revenue shall provide suitable office space for the

board and its personnel to suit the public convenience in all proper way to facilitate the work of

the board in carrying out the provisions of §§ 31-5-1 – 31-5-20 and §§ 31-5-33 – 31-5-39.

     (h) Members of the board shall serve without salary, nor shall they be compensated for

attendance at board meetings, however, members of the board shall be reimbursed for their actual

expenses necessarily incurred in the performance of their duties. The department of

administration revenue shall provide funds to pay said expenses. Also, the department shall

provide legal counsel to the board to defend and enforce the board's decision and provide legal

advice on any matters that may come before the board.

31-5-12. Responsibility of licensee for acts of agents. – It shall be sufficient cause for

the denial, suspension, or revocation of any license issued under this chapter, that any officer,

director, partner, trustee, or agent, including independent salespersons of the licensee, has been

found by the department of administration revenue to have engaged in any conduct, act, or

omission which would be cause for refusing, suspending, or revoking a license to that party as an

individual.

31-5-21. Manufacturer's license required. – (a) No manufacturer, factory

representative, or distributor shall engage in business as a manufacturer, factory representative, or

distributor in this state without a license to do so as provided in § 31-5-22.

     (b) For the purpose of this chapter, each division of a motor vehicle manufacturer or

distributor shall be considered a separate manufacturer or distributor for purposes of licensing

under this chapter. The department of administration revenue is empowered to obtain from the

Rhode Island superior court for Providence County a restraining order temporarily, preliminarily,

and permanently restraining any manufacturer, distributor, or factory representative from

engaging in business within this state unless licensed.

31-5-22. Application for license – Fee – Expiration. – (a) Any person desiring to be

licensed as a manufacturer, factory representative, or distributor shall apply to the department of

administration revenue upon a form containing any information that the department shall require.

The department may require with the application or, otherwise, information relating to the

applicant's solvency, his or her financial standing, or other pertinent matter commensurate with

the safeguarding of the public interest, all of which may be considered by the department in

determining the fitness of the applicant to engage in the business for which the applicant desires

the license.

31-5-25. Hearing on suspension or revocation of license. – No license shall be

suspended or revoked except after a hearing. The department of administration revenue shall give

the licensee at least five (5) days' written notice of the time and place of the hearing, together with

the reasons for the department's proposed action.

31-5-26. Appeal from the department of transportation. – Appeal from the

department of revenue. -- Any licensee or other person in interest being dissatisfied with an

order of the department of administration revenue may appeal the order to the sixth division of

the district court pursuant to the procedure established pursuant to § 42-35-15.

31-5-38. Certiorari from the department. – Any licensee or other person in interest

being dissatisfied with an order of the department of administration revenue may file a petition

for certiorari in the supreme court.

     SECTION 6. Section 31-5.1-3, 31-5.1-4 and 31-5.1-4.1 in Chapter 31-5.1 entitled

“Regulation of Business Practices” are hereby amended to read as follows:

31-5.1-3. Unlawful acts and practices. – (a) Unfair methods of competition, and unfair

or deceptive acts or practices, as defined in this chapter, are declared to be unlawful.

     (b) In construing subsection (a) of this section, the courts may be guided by the

interpretations of § 45 of the Federal Trade Commission Act (15 U.S.C. § 45), as from time to

time amended.

     (c) The department of administration revenue may make rules and regulations

interpreting the provisions of subsection (a) of this section. The rules and regulations shall not be

inconsistent with the rules, regulations, and decisions of the Federal Trade Commission and the

federal courts interpreting the provisions of the Federal Trade Commission Act (15 U.S.C. § 45),

as from time to time amended.

31-5.1-4. Violations. – (a) It shall be deemed a violation of this chapter for any

manufacturer or motor vehicle dealer to engage in any action which is arbitrary, in bad faith, or

unconscionable and which causes damage to any of the parties involved or to the public.

     (b) It shall be deemed a violation of this chapter for a manufacturer, or officer, agent, or

other representative of a manufacturer, to coerce, or attempt to coerce, any motor vehicle dealer:

     (1) To order or accept delivery of any motor vehicle or vehicles, equipment, parts, or

accessories for them, or any other commodity or commodities which the motor vehicle dealer has

not voluntarily ordered.

     (2) To order or accept delivery of any motor vehicle with special features, accessories, or

equipment not included in the list price of that motor vehicle as publicly advertised by the

manufacturer of the vehicle.

     (3) To participate monetarily in an advertising campaign or contest, or to purchase any

promotional materials, or training materials, showroom or other display decorations or materials

at the expense of the new motor vehicle dealership.

     (4) To enter into any agreement with the manufacturer or to do any other act prejudicial

to the new motor vehicle dealer by threatening to terminate or cancel a franchise or any

contractual agreement existing between the dealer and the manufacturer; except that this

subdivision is not intended to preclude the manufacturer or distributor from insisting on

compliance with the reasonable terms or provisions of the franchise or other contractual

agreement, and notice in good faith to any new motor vehicle dealer of the new motor vehicle

dealer's violation of those terms or provisions shall not constitute a violation of the chapter.

(5) To refrain from participation in the management of, investment in, or acquisition of

any other line of new motor vehicle or related products. This subdivision does not apply unless

the new motor vehicle dealer maintains a reasonable line of credit for each make or line of new

motor vehicle, the new motor vehicle dealer remains in compliance with any reasonable facilities

requirements of the manufacturer, and no change is made in the principal management of the new

motor vehicle dealer.

     (6) To prospectively assent to a release, assignment, novation, waiver, or estoppel which

would relieve any person from the liability to be imposed by this law or to require any

controversy between a new motor vehicle dealer and a manufacturer, distributor, or representative

to be referred to any person other than the duly constituted courts of this state or of the United

States of America, or to the department of administration revenue of this state, if that referral

would be binding upon the new motor vehicle dealer.

31-5.1-4.1. Dealership – Survivorship. – (a)(1) Right of designated family member to

succeed in dealership ownership. Any owner of a new motor vehicle dealership may appoint by

will or any other written instrument a designated family member to succeed in the ownership

interest of that owner in the new motor vehicle dealership.

     (2) Unless there exists good cause for refusal to honor that succession on the part of the

manufacturer or distributor, any designated family member of a deceased or incapacitated owner

of a new motor vehicle dealer may succeed to the ownership of the new motor vehicle dealer

under the existing franchise provided that:

     (i) The designated family member gives the manufacturer or distributor written notice of

his or her intention to succeed to the ownership of the new motor vehicle dealer within one

hundred twenty (120) days of the owner's death or incapacity;

     (ii) The designated family member agrees to be bound by all the terms and conditions of

the franchise; and

     (iii) The designated family member shall not operate the dealership unless he or she

meets the then-current criteria generally applied by the manufacturer or distributor in qualifying

dealer-operators.

     (3) The manufacturer or distributor may request, and the designated family member shall

provide, promptly upon the request, personal and financial data that is reasonably necessary to

determine whether the succession should be honored.

     (b) Refusal to honor succession to ownership -- Notice required.

     (1) If a manufacturer or distributor believes that good cause exists for refusing to honor

the succession to the ownership of a new motor vehicle dealer by a family member of a deceased

or incapacitated owner of a new motor vehicle dealer under the existing franchise agreement, the

manufacturer or distributor may, not more than sixty (60) days following receipt of:

     (i) Notice of the designated family member's intent to succeed to the ownership of the

new motor vehicle dealer; or

     (ii) Any personal or financial data which it has requested, serve upon the designated

family member and the department of administration revenue notice of its refusal to honor the

succession and of its intent to discontinue the existing franchise with the dealer no sooner than

ninety (90) days from the date the notice is served.

     SECTION 7. Section 31-5.2-7.1 of the General Laws in Chapter 31-5.2 entitled

“Consumer Enforcement of Motor Vehicle Warranties” is hereby amended to read as follows:

31-5.2-7.1. Procedure. – (a) In addition to any settlement procedure provided for in § 31-

5.2-7, the department of the attorney general shall provide an independent arbitration procedure

for the settlement of disputes between consumers or lessees and manufacturers concerning motor

vehicles which do not conform to all applicable express or implied warranties. There shall be

established the motor vehicle arbitration board which shall consist of five (5) members. The

board shall consist of the attorney general or his or her designee, who shall serve as director, a

member of the general public appointed by the attorney general, the director of the department of

administration revenue or his or her designee, the president of the Rhode Island Automobile

Dealers' Association or his or her designee, and the administrator of the division of motor

vehicles or his or her designee, only one of whom shall be directly involved in the manufacture,

distribution, sale, lease, or service of any automobile product. Members shall be persons

interested in consumer disputes, and shall serve without compensation.

     (b) An owner or lessee of any motor vehicle purchased or leased which fails to conform

to the applicable express or implied warranties may either initiate a request with the department

of attorney general for arbitration by the motor vehicle arbitration board or take part in the

settlement procedure set forth in § 31-5.2-7 if in existence. The consumer or lessee shall set forth,

on a complaint form prescribed by the department of attorney general, any information he or she

deems relevant to the resolution of the dispute and shall file the complaint with a nonrefundable

filing fee of twenty dollars ($ 20.00). The attorney general shall decide if the complaint is eligible

under chapter 5.2 of this title. Upon acceptance of the complaint, the attorney general shall notify

the manufacturer of the filing of a request for arbitration and shall obtain from the manufacturer,

in writing on a form prescribed by the attorney general, any information the manufacturer deems

relevant to the resolution of the dispute. The manufacturer shall return the form, along with a non-

refundable fifty dollar ($ 50.00) filing fee, within twenty (20) days of receipt. The department of

attorney general shall then refer the matter to the motor vehicle arbitration board created pursuant

to subsection (a) of this section.

     (c) The motor vehicle arbitration board shall investigate, gather, and organize all

information necessary for a fair and timely decision in each dispute. The board may issue

subpoenas to compel the attendance of witnesses and the production of documents, papers, and

records relevant to the dispute.

     (d) At all arbitration proceedings before the board the parties may present oral or written

testimony, present witnesses and evidence relevant to the dispute, cross examine witnesses, and

be represented by counsel.

     (e) The motor vehicle arbitration board may forward a copy of all written testimony,

including all documentary evidence, to an independent technical expert, who shall review the

material and be able to advise and consult with the board. An expert shall sit as a non-voting

member of the board whenever oral testimony is presented. The expert shall provide advice and

counsel to the board as a part of its deliberation process and shall aid the board in preparing its

findings and facts.

     (f) The motor vehicle arbitration board shall grant the relief specified in § 31-5.2-3 of this

chapter and any other relief available under the applicable warranties or the Magnuson-Moss

Warranty Federal Trade Commission Improvement Act, 88 Stat. 2183 (1975), 15 U.S.C.

section 2301 15 U.S.C. section 2301 et seq., as in effect on October 1, 1982, to the consumer

or lessee if a reasonable number of 15 U.S.C. section 2301 et seq., as in effect on October 1,

1982, to the consumer or lessee if a reasonable number of attempts, as provided in § 31-5.2-5(1)

and (2) have been undertaken to correct one or more 15 U.S.C. section 2301 et seq., as in effect

on October 1, 1982, to the consumer or lessee if a reasonable number of attempts, as provided in

§ 31-5.2-5(1) and (2) have been undertaken to correct one or more nonconformities that

substantially impair the motor vehicle. The motor vehicle arbitration board 15 U.S.C. section

2301 et seq., as in effect on October 1, 1982, to the consumer or lessee if a reasonable number

of attempts, as provided in § 31-5.2-5(1) and (2) have been undertaken to correct one or more

nonconformities that substantially impair the motor vehicle. The motor vehicle arbitration board

shall dismiss the dispute if it finds, after considering all the evidence presented, that the consumer

15 U.S.C. section 2301 et seq., as in effect on October 1, 1982, to the consumer or lessee if a

reasonable number of attempts, as provided in § 31-5.2-5(1) and (2) have been undertaken to

correct one or more nonconformities that substantially impair the motor vehicle. The motor

vehicle arbitration board shall dismiss the dispute if it finds, after considering all the evidence

presented, that the consumer or lessee is not entitled to relief under this chapter.

     (g) (1) The board shall, as expeditiously as possible, but not later than ninety (90) days

from the date the director deems the dispute eligible for arbitration, render a fair decision based

on the information gathered and disclose its findings and the reasons for it to the parties involved.

The consumer or lessee shall accept or reject the decision within five (5) days of its filing.

     (2) If the decision is favorable to the consumer or lessee, the manufacturer shall within

thirty (30) days after the rendering of the decision, either comply with the terms of the decision if

the consumer or lessee elects to accept the decision or appeal the finding to superior court. No

appeal by a manufacturer shall be heard unless the petition for such appeal is filed with the clerk

of the superior court within thirty (30) days of issuance of the finding of the motor vehicle

arbitration board and is accompanied by a bond in a principal sum equal to the money award

made by the state-certified arbitrator plus two thousand five-hundred dollars ($ 2,500) for

anticipated attorneys' fees, secured by cash or its equivalent, payable to the consumer. The

liability of the surety of any bond filed pursuant to this section shall be limited to the

indemnification of the consumer in the action. Such bond shall not limit or impair any right of

recovery otherwise available pursuant to law, nor shall the amount of the bond be relevant in

determining the amount of recovery to which the consumer shall be entitled. In the event that any

motor vehicle arbitration board decision, resulting in an award of a refund or replacement, is

upheld by the court, recovery by the consumer shall include continuing damages in the amount of

twenty-five dollars ($ 25.00) per day for each day, subsequent to the day the motor vehicle was

returned to the manufacturer pursuant to § 31-5.2-3, that said vehicle was out of use as a direct

result of any nonconformity not issuing from owner negligence, accident, vandalism or any

attempt to repair or substantially modify the vehicle by a person other than the manufacturer, its

agent or authorized dealer; provided, however, that the manufacturer did not make a comparable

vehicle available to the consumer free of charge. In addition to any other recovery, any prevailing

consumer shall be awarded reasonable attorneys' fees and costs. If the court finds that the

manufacturer did not have any reasonable basis for its appeal or that the appeal was frivolous, the

court shall double the amount of the total award made to the consumer. The motor vehicle

arbitration board shall contact the consumer or lessee, within ten (10) working days after the date

for performance, to determine whether performance has occurred.

(h) The motor vehicle arbitration board shall maintain the records of each dispute as

deemed necessary, including an index of disputes by brand name and model. The motor vehicle

arbitration board shall, at intervals of no more than six (6) months, compile and maintain statistics

indicating the record of manufacturer compliance with arbitration decisions and the number of

refunds or replacement awarded. The summary shall be a public record.

     (i) The motor vehicle arbitration board automobile dispute settlement procedure shall be

prominently posted in the place of business of each new car dealer or lessor licensed by the

department of administration revenue to engage in the sale or lease of that manufacturer's new

motor vehicles. The display of this public notice shall be a condition of licensure under the

general laws. The board shall determine the size, type face, form and wording of the sign required

by this section, which shall include the telephone number and the address to which requests for

the motor vehicle arbitration board arbitration services may be sent.

     SECTION 8. Section 31-5.4-6 of the General Laws in Chapter 31-5.4 entitled “Consumer

Enforcement of Used Motor Vehicle Warranties” is hereby amended to read as follows:

31-5.4-6.  Disclosure of rights. – (a) The director of the department of administration

revenue shall promulgate rules, regulations and forms to implement the notice provision in

subsection (b) of this section. The forms promulgated by the director shall be used by every

dealer in the sale of every automobile protected by this chapter.

     (b) Clear and conspicuous notice of the warranties created by this chapter of the rights

pertaining to them and of the implied warranty of merchantability shall be given to the consumer

in writing at the time the consumer purchases a used motor vehicle from the dealer. Each notice

required by this section shall describe the procedures available to redress violations of this section

and shall contain the telephone number of the department of administration revenue.

     (c) A seller's failure to provide the buyer with the documents and forms promulgated by

the director of the department of administration revenue pursuant to this section shall constitute

prima facie evidence of bad faith and unfair and deceptive trade practice under § 6-13.1-1.

Violations of this section shall be actionable by the buyer under §§ 31-5.4-5 and 6-13.1-5.2.

     SECTION 9. Sections 31-10-5, 31-10-5.1 and 31-10-21 of the General Laws in Chapter

31-10 entitled “Operators’ and Chauffeurs’ Licenses” are hereby amended to read as follows:

31-10-5. Special restrictions for drivers for compensation. –   (a) No person who is

under the age of twenty-one (21) years shall drive any school bus transporting school children or

any motor vehicle when in use for the transportation of persons or property for compensation nor

in either event until he or she has been licensed as a chauffeur for either purpose and the license

so indicates. Colleges and universities shall be exempt from the requirement for a public plate for

vehicles used to shuttle only students or employees to various points within the college or

university campus. Provided, however, that the college or university shall own and operate the

shuttle service and there shall be no specific charge for the transportation of students or

employees. The division of motor vehicles shall not issue a chauffeur's license for either purpose

unless the applicant has had at least one year of driving experience prior to the application, and

has filed with the division of motor vehicles one or more certificates signed by a total of at least

three (3) responsible people to whom he or she is well known certifying to the applicant's good

character and habits and the administrator of the division of motor vehicles is fully satisfied as to

the applicant's competency and fitness to be so employed.

     (b) In addition to the requirements provided in subsection (a) of this section, any person

attempting to obtain a chauffeur's license to drive a school bus transporting school children shall,

prior to being certified:

     (1) Successfully complete a ten (10) hour school bus driver training course conducted by

the department of administration revenue or the department of revenue’s designee and file a

certificate of successful completion with the division of motor vehicles. The curriculum of that

course and the accreditation of courses offered shall be pursuant to rules and regulations

promulgated by the division of motor vehicles;

     (2) Pass a written examination prepared and given by the department of administration

revenue or the department of revenue’s designee.

     (3) Pass a driving test in a school bus of a like type which that person will be employed to

drive. The test will be prepared and given by the department of administration revenue.

31-10-5.1. School bus driver annual training. – (a) The department of administration

revenue shall promulgate any rules and regulations that it deems necessary to ensure that a ten

(10) hour training course is provided for all new school bus drivers and a three (3) hour retraining

course is provided to all renewal applicants on at least a yearly basis.

     (b) The training shall include, but not be limited to, defensive driving, and instruction in

all state laws, rules, and regulations relating to school buses and school bus safety.

     (c) Prior to any renewal of any certificate of a school bus driver, the division of motor

vehicles shall require proof of the renewal applicant's having successfully completed the annual

retraining as provided in this section. That proof shall include the passing of a written

examination prepared by the department of administration revenue or the department of revenue’s

designee and conducted by employees of the department.

31-10-21. Written and eye examination. – (a) Every applicant for a license to operate a

motor vehicle upon the public highways shall be required by the division of motor vehicles to

show, by examination or otherwise, the ability to read and understand highway signs regulating,

warning, and directing traffic, the proper knowledge of the operation and mechanism of motor

vehicles, the rules of the road, the motor vehicle law, and such other qualifications as will

demonstrate that the applicant is a proper and safe person to operate a motor vehicle upon the

public highways. The examination shall include a test of the applicant's eyesight.

Notwithstanding the foregoing,

     (b) Any person who has successfully completed a driver education course as set forth in §

31-10-19 and who has passed a standardized written driver's license examination approved by the

director of the department of administration revenue shall not be required to take the written

examination. The director of the department of administration revenue shall develop a

standardized written driver's license examination which shall be administered by certified driver

education instructors at the completion of each driver's education course.

(c) An applicant, within six (6) months of having been certified by the department of

elementary and secondary education as having passed a written examination administered by

that department, shall, upon completion of an eyesight test by the division of motor vehicles, be

considered in compliance with this section.

     SECTION 10. Sections 31-10.2-1, 31-10.2-2 and 31-10.2-3 of the General Laws in

Chapter 31-10.2 entitled “Voluntary Termination of Operators’ and Chauffeurs’ Licenses” are

hereby amended to read as follows:

31-10.2-1.  Purpose. – The department of administration revenue, division of motor

vehicles, presently lacks the authority to allow the voluntary termination of operators' and

chauffeurs' licenses by an individual. It is the intent of this chapter to establish rules and

regulations regarding the voluntary termination of operators' and chauffeurs' licenses in this state.

Pursuant to §§ 31-2-4, 42-35-3(b), and 42-35-4(b)(2), the department of administration revenue

shall adopt and establish the following rules and regulations regarding voluntary termination of

operators' and chauffeurs' licenses. Any and all regulations previously promulgated for this

purpose are rescinded.

31-10.2-2.  Operators' licenses. – (a) An individual may voluntarily terminate his or her

operators' license by tendering the license to the operator control section of the department of

administration revenue, division of motor vehicles.

31-10.2-3.  Chauffeur's licenses. – (a) An individual may voluntarily terminate his or

her chauffeur's license by tendering the license to the operator control section of the department

of administration revenue, division of motor vehicles.

     SECTION 11. Sections 31-10.3-3, 31-10.3-7, 31-10.3-8 and 31-10.3-31 in Chapter 31-

10.3 entitled “Uniform Commercial Drivers’ License Act ” are hereby amended to read as

follows:

31-10.3-3. Definitions. – Notwithstanding any other provisions of title 31 the following

definitions apply to this chapter unless the context requires otherwise:

     (1) "Administrator" means the division of motor vehicles administrator, the chief

executive of the division of motor vehicles, an agency within the department of administration

revenue.

     (2) "Alcohol or alcoholic beverage" means (a) beer as defined in 26 U.S.C. 5052(a), of

the Internal Revenue Code of 1954; (b) wine of not less than one-half of one percentum (0.5%) of

alcohol by volume; or (c) distilled spirits as defined in section 5002(a)(8), of said code.

     (3) "Base license" means the operator's or driver's license without any classifications,

endorsements, or restrictions

     (4) "Bus" means every motor vehicle designed for carrying sixteen (16) or more

passengers (including the driver).

     (5) "Cancellation of driver's license" means the annulment or termination by formal

action of the department of a person's driver's license because of some error or defect in the

license (or application) or because the licensee is no longer entitled to the license.

     (6) "Certified commercial driving instructor" means any person who gives commercial

driver training or who offers a course in driver training, and who is certified as such by the

administrator.

     (7) "Commerce" means:

     (i) Trade, traffic, and transportation within the jurisdiction of the United States within the

state; between a place in a state and a place outside the state, including a place outside the United

States; and

     (ii) Trade, traffic, and transportation in the United States which affects any trade, traffic,

and transportation in paragraph (i) of this subdivision.

     (8) "Commercial license" means a license issued by the department in accordance with

the standards contained in 49 C.F.R. Part 383, as it may be revised from time to time, to an

individual which authorizes the individual to operate a class of commercial motor vehicle.

     (9) "Commercial motor vehicle" means a motor vehicle or combination of vehicles used

to transport passengers or property if the motor vehicle:

     (i) Has a gross combination weight rating of twenty-six thousand one (26,001) or more

pounds, of a towed unit with a gross vehicle rating of more than ten thousand pounds (10,000

lbs.), or has a gross vehicle weight rating of twenty-six thousand one (26,001) or more pounds;

     (ii) Is designed to transport sixteen (16) or more passengers including the driver; or

     (iii) Is transporting hazardous materials as defined in this section.

     (10) "Controlled substance" means any substance as classified under § 102(6) of the

Controlled Substance Act (21 U.S.C. 802(6)) and includes all substances as listed in schedules I

through V of 21 C.F.R. Part 1308 as they may be revised from time to time.

     (11) "Conviction" means an unvacated adjudication of guilt or a determination that a

person has violated or failed to comply with the law in a court of original jurisdiction or by an

authorized administrative tribunal, an unvacated forfeiture of bail or collateral deposited to secure

the person's appearance in court, a plea of guilty or nolo contendere accepted by the court, the

payment of a fine or court cost or violation of condition of release without bail, regardless of

whether or not the penalty is rebated, suspended, or probated.

     (12) "Department" means the department of administration revenue acting directly or

through its duly authorized officers and agents.

31-10.3-7.  Administration by department. – This chapter shall be administered by the

department of administration revenue, division of motor vehicles.

31-10.3-8. Rulemaking authority. – The administrator for motor vehicles, department

of administration revenue, is authorized to adopt and enforce any rules and regulations that may

be necessary to carry out the provisions of chapters 1 – 27 of this title and any other laws the

enforcement and administration of which are vested in the division of motor vehicles, including

rules and regulations concerning specialized testing and standards for operators of commercial

vehicles. Any former member of the Armed Forces, including, but not limited to, the Rhode

Island National Guard, who received a military license to drive heavy equipment, shall be exempt

from taking a road test when applying for a commercial driver's license for a similar class of

commercial motor vehicle for which the applicant has been previously licensed by the military, if

such applicant is deemed to be otherwise qualified pursuant to 49 CFR 383.77. Any member of

an organized fire department, including volunteer members, who have five (5) years of driving

experience of fire apparatus and who has completed a safety driving course, including a road test

from a recognized agency shall, upon providing a letter from the fire chief of their fire department

to the administrator of motor vehicles, be exempt from taking a road test when applying for a

commercial drivers' license for a similar class of commercial motor vehicle, provided the

applicant is deemed otherwise qualified pursuant to 49 CFR 383.77.

31-10.3-31. Violations – Penalties. – (a) It shall be illegal for any person driving any

commercial motor vehicle as defined in this chapter to operate or control that vehicle while under

the influence of alcohol, drugs, toluene, or any other substance as defined in chapter 28 of title

21. For the purpose of this chapter, any person who drives, operates, or exercises physical control

of a commercial motor vehicle while having a blood alcohol concentration of four-one-

hundredths of one percent (.04%) or greater by weight, as shown by a chemical analysis of a

blood, breath, or urine sample shall be guilty of the offense of driving while under the influence

of liquor or drugs.

     (b)(1) Notwithstanding any other provision of this chapter, it shall be illegal for any

person to drive, operate, or be in physical control of a commercial motor vehicle while having

alcohol in his or her system.

     (2) The administrator shall suspend, for at least one year, a commercial motor vehicle

operator's license or privilege who is found to have committed a first violation of:

     (i) Driving a commercial motor vehicle under the influence of alcohol or controlled

substances;

     (ii) Driving a commercial motor vehicle while the alcohol concentration in the person's

blood, breath, or other bodily substance is four-one-hundredths of one percent (.04%) or greater;

     (iii) Leaving the scene of an accident involving a commercial motor vehicle driven by the

person;

     (iv) Using a commercial motor vehicle in the commission of a felony;

     (v) Refusing to submit to a chemical analysis of breath, blood, or urine while operating a

commercial vehicle.

     (3) If the operator commits any of these violations while carrying hazardous materials

requiring placards under federal/state regulations, the revocation shall be for a period of not less

than three (3) years.

     (4) The administrator shall revoke for life, which may be reduced to a period of at least

ten (10) years in accordance with department of administration revenue regulations, a commercial

motor vehicle operator's license or privilege who is found to have committed a second violation

of:

     (i) Driving a commercial motor vehicle under the influence of alcohol or controlled

substances;

     (ii) Driving a commercial motor vehicle while the alcohol concentration in the person's

blood, breath, or other bodily substance is four-one-hundredths of one percent (.04%) or greater;

     (iii) Knowingly and willfully leaving the scene of an accident involving a commercial

motor vehicle driven by the person;

     (iv) Using a commercial motor vehicle in the commission of a felony;

     (v) Refusing to submit to a chemical analysis of breath, blood, and/or urine while in a

commercial motor vehicle.

     SECTION 12. Section 31-12-14 of the General Laws in Chapter 31-12 entitled “Scope of

Application of Traffic Regulations” is hereby amended to read as follows:

31-12-14. State approval for traffic control devices on state highways. – No local

authority shall erect or maintain any stop sign or traffic control signal at any location so as to

require the traffic on any state highway to stop before entering or crossing any intersecting

highway unless approval in writing has first been obtained from the department of administration

state traffic commission.

     SECTION 13. Sections 31-13-1 and 31-13-13 of the General Laws in Chapter 13 entitled

“Traffic Control Devices” are hereby amended to read as follows:

31-13-1.  State traffic commission – Manual of traffic control devices. – (a) There is

established a state traffic commission consisting of the superintendent of state police or his or her

designee from within the department of state police, the director of the department of

administration revenue or his or her designee from within the division of motor vehicles, the

director of the department of transportation or his or her designee from within the department of

transportation, the governor's representative to the National Highway Traffic Safety

Administration, and a member of the public appointed by the governor with the advice and

consent of the senate, with respect to which appointment the governor shall solicit and give due

consideration to the recommendation of the Rhode Island Police Chief's Association. The

commission shall elect from among the members a chair and such other officers as it deems

necessary.

     (b) For the purpose of standardization and uniformity, the commission shall adopt and

cause to be printed for publication a manual of regulations and specifications establishing a

uniform system of traffic control signals, devices, signs, and marking consistent with the

provisions of this chapter for use upon the public highways. The commission shall establish the

traffic regulations under chapters 12 -- 27 of this title. The commission shall meet not less

frequently than monthly. The department of transportation shall provide all staff services and

quarters required by the commission.

     (c) Within ninety (90) days after the end of each fiscal year, the commission 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, including

meetings minutes, subjects addressed, decisions rendered, applications considered and their

disposition, 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 counsel; a summary of any training courses held pursuant to

the provisions of this chapter; a briefing on anticipated activities in the upcoming fiscal year, and

findings and recommendations for improvements. The report shall be posted electronically on the

websites of the general assembly and the secretary of state pursuant to the provisions of § 42-20-

8.2. The director of the department of administration transportation shall be responsible for the

enforcement of the provisions of this subsection.

     (d) To conduct a training course for newly appointed and qualified members within six

(6) months of their qualification or designation. The course shall be developed by the chair of the

commission, be approved by the commission, and be conducted by the chair of the commission.

The commission may approve the use of any commission and/or staff members and/or individuals

to assist with training. The training course shall include instruction in the following areas: the

provisions of chapters 42-46, 36-14 and 38-2; and the commission's rules and regulations. The

director of the department of administration revenue transportation shall, within ninety (90) days

of the effective date of this act [June 16, 2006], prepare and disseminate training materials

relating to the provisions of chapters 42-46, 36-14, and 38-2.

31-13-13.  Hospital sign indicating emergency treatment facility. – The director of

administration transportation is directed to include on all signs indicating a hospital area,

directions to a hospital, or the presence of a hospital, and whether the hospital has an emergency

treatment facility.

     SECTION 14. Section 31-14-12.1 of the General Laws in Chapter 31-14 entitled “Speed

Restrictions” is hereby amended to read as follows:

31-14-12.1.  Special speed limits in highway construction and maintenance

operations. – (a) Whenever the department of administration transportation or local governing

unit with jurisdiction over the highways determines that the preexisting established speed limit

through a highway construction or maintenance operation is greater than is reasonable or safe

with respect to the conditions expected to exist in that operation, it may, on highways under its

respective jurisdiction, determine and declare reasonable and safe absolute maximum temporary

speed limits applicable through all or part of the operation. A temporary speed limit so

determined and declared shall become effective and shall suspend the applicability of any other

speed limit prescribed in this chapter when appropriate signs of the design prescribed by the

department giving notice of the limits are erected at or along the operation. When these signs are

erected, the total of fines, penalties, and costs assessed upon conviction shall be twice the amount

otherwise set by the general laws.

     (b) When street, highway or bridge construction, or a maintenance operation is present,

the department of administration transportation or local governing unit with jurisdiction over the

street or highway shall erect signs declaring that the fine for a conviction of a traffic violation, as

defined by § 31-41.1-4, through the "temporary traffic control zone" shall be doubled. When

these signs are erected, the total of the fines, penalties, and costs assessed upon conviction shall

be twice the amount otherwise set by the general laws. The prescribed legend for the signs shall

be established by the department of administration transportation.

     SECTION 15. Sections 31-19.3-3 and 31-19.3-5 of the General Laws in Chapter 31-19.3

entitled “Rental of Motorized Bicycles and Motorized Tricycles” are hereby amended to read as

follows:

31-19.3-3. License required. – No person, firm, or corporation shall offer for rent or

lease or allow to be rented or leased any motorized bicycle, motor scooter or motorized tricycle

within the town of New Shoreham, unless and until the town council of the town of New

Shoreham issues a license in accordance with the provisions of this chapter. However, any

person, firm, or corporation holding a license to rent or lease motorized bicycles, motor scooters

or motorized tricycles which has been issued by the department of administration revenue shall be

permitted to continue to operate pursuant to the license; provided, that upon the expiration of the

license, the person, firm, or corporation shall be required to comply with the provisions of this

chapter in order to rent or lease motorized bicycles, motor scooters or motorized tricycles within

the town of New Shoreham.

31-19.3-5. Ordinances. –  (a) The town council of the town of New Shoreham may

enact reasonable ordinances establishing procedures and standards for the licensing, supervision,

regulation, and control of the rental of motorized bicycles, motor scooters and motorized

tricycles.

     (b) An ordinance enacted pursuant to this section may:

     (1) Establish a fee to be charged for the issuance or renewal of any license for the rental

of motorized bicycles, motor scooters and/or motorized tricycles the holder of the license is

authorized to rent or lease and shall not exceed the sum of forty dollars ($40.00) per motorized

bicycle, motor scooters or motorized tricycle.

     (2) Establish a maximum number of licenses which may be granted for the rental of

motorized bicycles, motor scooters and/or motorized tricycles.

     (3) Establish hours during which motorized bicycles, motor scooters and/or motorized

tricycles may be rented.

     (4) Establish a maximum number of motorized bicycles, motor scooters and/or motorized

tricycles which a license holder may rent or lease under the license.

     (5) Provide that no motorized bicycle, motor scooters or motorized tricycle shall be

rented or leased in the town of New Shoreham unless the operator thereof has a valid license

issued under the provisions of § 31-10-1, or a similar license issued by a state other than Rhode

Island.

     (6) Require all motorized bicycles, motor scooters and/or motorized tricycles to pass

inspection annually and be issued a certificate by a duly authorized state inspection facility

indicating that the vehicle has passed inspection to be conducted at inspection agencies which

shall be created and governed by rules and regulations promulgated by the department of

administration revenue.

     SECTION 16. Sections 31-20-15 and 31-20-16 of the General Laws in Chapter 31-20

entitled “Special Stops Required” are hereby amended to read as follows:

31-20-15. Posting of bridle path signs. – The department of administration revenue shall

in all parks and reservations, and the traffic safety commission shall on all state highways, erect

and maintain adequate signs requiring operators of motor vehicles to come to a complete stop

because of the existence of a bridle path where saddle horses may cross the roads in the parks and

reservation and/or state highways.

31-20-16.  Stops at bridle path crossings. – (a) Every operator of a motor vehicle shall

bring his or her motor vehicle to a complete stop in parks and reservations and on state highways

where the department of administration revenue or state traffic commission has posted signs of

bridle paths where saddle horses may cross the roads in the parks and reservations and/or

highways.

     SECTION 17. Sections 31-21-11 and 31-21-12 of the general Laws in Chapter 31-21

entitled “Special Stopping, Standing and Parking Restrictions” are hereby amended to read as

follows:

31-21-11. Removal of disabled vehicle obstructing traffic on state highway, state

bridge, or state tunnel. – Whenever a vehicle, whether attended or unattended, is disabled upon

any state highway, state bridge, state causeway, or in a state tunnel where the vehicle constitutes

an obstruction to traffic, the department of administration transportation is authorized to remove,

or to provide for the removal of, the vehicle to the nearest garage, service station, or other place

of safety at no expense to the owner or operator of the disabled vehicle for its removal.

31-21-12.  Acquisition, maintenance, and operation of tow trucks by department of

administration. – Acquisition, maintenance, and operation of tow trucks by department of

transportation. -- The department of administration transportation is authorized to acquire,

equip, maintain and operate not more than four (4) tow trucks, and to assign state employees to

the trucks for the removal of disabled motor vehicles from state highways, state bridges, state

causeways, or state tunnels in accordance with § 31-21-11.

     SECTION 18. Sections 31-22-9, 31-22-11 and 31-22-11.6 of the General Laws in

Chapter 31-22 entitled “Miscellaneous Rules” are hereby amended to read as follows:

31-22-9. Throwing debris on highway – Snow removal. – (a) No person shall throw or

deposit upon any highway any glass bottle, glass, nails, tacks, wire, cans, or any other substance

likely to injure any person, animal, or vehicle upon the highway, or likely to deface the beauty or

cleanliness of the highway, nor shall any person in removing snow from any driveway, public or

private, leave the snow in any condition so as to constitute a hazard on the highway.

     (b) The director of administration transportation shall post signs advising the public of

penalties for throwing debris on the highways.

31-22-11. Inspection of school buses. – (a) The division of motor vehicles shall inspect

or cause to be inspected all school buses used for the transportation of school children as defined

in § 31-1-3(v) at least twice throughout the year. Both of the inspections are to be done at a state

certified facility on a semiannual scheduled basis. These inspections will be known as tear down

inspections that will include pulling wheels at least once each year if the school bus is equipped

with drum brakes and any other work deemed necessary by the state employed or state certified

inspectors. Reports of the inspections shall be made in writing and shall be filed with the

inspection division of the department of administration revenue, and the reports shall be available

at no cost for public inspection during usual business hours of the division.

31-22-11.6. Child care vehicles and school extra-curricular vehicles. – (a)

(1) Pursuant to § 31-22-10, the division of motor vehicles is authorized to promulgate rules and

regulations concerning the type, construction, and equipment of motor vehicles used for the

transportation of children to and from child care facilities and to and from school sponsored

activities including athletics and extra-curricular activities.

     (2) (i) For the purposes of this section, "school bus", as referred to in § 31-1-3(v), is

defined as a vehicle which is used to carry children to or from school on school bound routes at

the outset of the children's school day and/or on home bound routes at the end of the children's

school day. For these routes, a school bus must be used regardless of the number of students

being transported.

     (ii) For purposes of this section, "school extra-curricular vehicles" is defined as vehicles

designed to transport fewer than fifteen (15) students to and from school sponsored activities

including athletics, internships, work experiences, and extra-curricular activities where school

buses are not used because of the small number of students being transported.

     (iii) For the purpose of this section, "child care vehicle" is defined as a motor vehicle

owned or leased by a licensed child care agency that does not exceed fifteen (15) passengers and

is being used to transport children from schools to child care facilities and/or from child care

facilities to schools. Two (2) door sedans shall not be considered child care vehicles or school

extra-curricular vehicles.

     (b) The division of motor vehicles shall have the authority to suspend the registration of

any vehicle used for child care transportation or school extra-curricular transportation that does

not meet the following requirements:

     (1) Seating. Adequate seating space for all passengers shall be provided. The maximum

seating capacity of a child care vehicle and school extra-curricular vehicle shall be fifteen (15)

persons, including the driver. No standing shall be permitted while the vehicle is in operation.

     (2) Safety belts. Safety belts shall be required for all passengers riding in the child care

vehicle and school extra-curricular vehicle.

     (3) Vehicle registration. All child care vehicles and school extra-curricular vehicles shall

be registered as public vehicles.

     (4) Vehicle inspection. All child care vehicles and school extra-curricular vehicles shall

be inspected for excessive emissions and/or safety items according to a staggered appointment

schedule as determined by the director of administration revenue, or his or her designee, and from

time to time thereafter as may be required, and the vehicle owner shall display upon the vehicle

the certificate of inspection and approval issued to the vehicle until the certificate shall expire.

     (5) Inspector's rejection notice. The director of administration revenue, or his or her

designee, may affix a notice of rejection to any vehicle that fails to pass the required inspection

requirements. The rejection notice shall not be destroyed or removed from the vehicle until the

vehicle has passed the inspection requirements, or its removal has been authorized by the director

of administration revenue or his or her designee.

     SECTION 19. Sections 31-23-1, 31-23-21, 31-23-44, 31-23-50 and 31-23-56 of the

General Laws in Chapter 31-23 entitled “Equipment and Accessories Generally” are hereby

amended to read as follows:

31-23-1. Driving of unsafe vehicle – Disobedience of requirements – Inspections of

motor carriers – Fines. – (a) It is a civil violation for any person to drive or move, or for the

owner, employer or employee to cause or knowingly permit to be driven or moved, on any

highway any vehicle or combination of vehicles which is in such an unsafe condition as to

endanger any person, or which does not contain those parts or is not at all times equipped with

lamps and other equipment in proper condition and adjustment as required in this chapter or

chapter 24 of this title, or for any person to do any act forbidden or fail to perform any act

required under these chapters.

     (b)(1) For the purpose of reducing the number and severity of accidents, all commercial

motor vehicles must meet applicable standards set forth in this chapter and chapter 24 of this title

and in the federal motor carrier safety regulations (FMCSR) contained in 49 CFR Parts 387 and

390-399, and the Hazardous Materials Regulations in 49 CFR Parts 107 (subparts F and G only),

171-173, 177, 178 and 180, as amended except as may be determined by the administrator to be

inapplicable to a state enforcement program, as amended and adopted by the U.S. Department of

Transportation (U.S. DOT), Federal Motor Carrier Safety Administration, as may be amended

from time to time. Part 391.11(b)(1) of FMCSR, 49 CFR 391.11(b)(1) shall not apply to intrastate

drivers of commercial motor vehicles except for drivers of school buses and vehicles placarded

under 49 CFR Part 172, Subpart F. Rules and Regulations shall be promulgated by the director of

the department of administration revenue for the administration and enforcement of motor carrier

safety. The rules and regulations shall be promulgated to ensure uniformity in motor carrier safety

enforcement activities and to increase the likelihood that safety defects, driver deficiencies, and

unsafe carrier practices will be detected and corrected.

     (2) Any carrier convicted of violating the rules and regulations established pursuant to

this subsection shall be fined not less than twenty-five dollars ($ 25.00) or more than five hundred

dollars ($ 500) for each offense.

     (c) For the purposes of this section, "carrier" is defined as any company or person who

furthers their commercial or private enterprise by use of a vehicle that has a gross vehicle weight

rating (GVWR) of ten thousand and one (10,001) or more pounds, or that transports hazardous

material.

     (d) Authorized examiners, investigators, officers, or regulatory inspectors from the

department of administration revenue with proper identification issued by the director of the

department of administration revenue, the state police, and local law enforcement officials with

proper identification certifying they are qualified motor carrier enforcement personnel trained

according to subsection (f) of this section, shall have a right of entry and authority to examine all

equipment of motor carriers and lessors and enter upon and perform inspections of motor carrier

vehicles in operation. They shall have authority to inspect, examine, and copy all accounts,

books, records, memoranda, correspondence and other documents of the motor carriers and or

lessors and the documents, accounts, books, records, correspondence, and memoranda of any

person controlling, controlled by, or under common control of any carrier which relate to the

enforcement of this chapter.

     (e)(1) Authorized examiners, investigators, officers, or regulatory inspectors from the

state police, local law enforcement officials or the department of administration revenue shall

declare "out of service" any motor vehicle which, by reason of its mechanical condition or

loading, is so imminently hazardous to operate as to be likely to cause an accident or a

breakdown. An "out of service vehicle" sticker shall be used to mark vehicles out of service. The

"out of service vehicle" sticker shall be affixed to the driver's window on power units placed out

of service and, affixed to the left front corner of trailers or semi-trailers placed out of service.

31-23-21.  Permits for operation of vehicles having tracks with transverse

corrugations. – The department of administration revenue and local authorities in their

respective jurisdictions may in their discretion issue special permits authorizing the operation

upon a highway of traction engines or tractors having movable tracks with transverse

corrugations upon the periphery of the movable tracks or farm tractors or other farm machinery,

the operation of which upon a highway would otherwise be prohibited under this chapter.

31-23-44.  Approved type of wheel safety chocks – Enforcement of requirements. –

All wheel safety chock blocks described in § 31-23-43 must be a type approved by the division of

motor vehicles, and the division of motor vehicles shall establish specifications and requirements

for approved types of wheel safety chock blocks. The specifications and requirements shall, in

general, follow the standards established by the department of administration revenue. The

administrator of the division of motor vehicles shall suspend the registration of any motor vehicle

described in § 31-23-43 not equipped with wheel safety chock blocks, until it is made to conform

to the requirements of the section.

31-23-50. Motorcycle reflectorized plates. – Every motorcycle registered within this

state shall be equipped with reflectorized plates which shall be supplied by the administrator of

the division of motor vehicles, department of administration revenue, pursuant to rules and

regulations to be determined by the administrator of the division of motor vehicles, department of

administration revenue.

31-23-56. Stop arm required. – Every school bus shall be equipped with a stop arm,

approved by the department of administration revenue, which shall be activated whenever school

children are being loaded or unloaded.

     SECTION 20. Section 31-23.1-10 of the General Laws in Chapter 31-23.1 entitled

“Vehicle Equipment Safety Compact” is hereby amended to read as follows:

31-23.1-10. Inspection of accounts. – Pursuant to article VI(e) of the compact, the

department of administration revenue is empowered and authorized to inspect the accounts of the

vehicle equipment safety commission.

     SECTION 21. Section 31-23.2-6 of the General Laws in Chapter 31-23.2 entitled

“Tampering with Odometers” is hereby amended to read as follows:

31-23.2-6.  Transfer of vehicle. – (a) Any sales agreement for the transfer of a motor

vehicle between persons as defined in this chapter shall contain the words "both buyer and seller

have examined the title certificate of this motor vehicle and it correctly reflects the mileage as it

appears on the odometer" which shall be placed conspicuously and prominently on the

agreement.

     (b) It shall be unlawful for any person to transfer ownership of a motor vehicle previously

registered in this state or a motor vehicle used by a dealer as a demonstrator unless the person:

     (1) Enters on a form prescribed by the department of administration revenue, as

prescribed by state law, the mileage the motor vehicle has been operated. The form shall be

signed by both the seller and buyer and contain a statement that both parties have viewed the

odometer of the motor vehicle. The form as completed shall then be attached to the instrument

evidencing transfer of ownership; or

(2) Enters upon the form "not actual mileage" in the event that the odometer mileage is

known to the person to be less than the motor vehicle has actually traveled; or

   (3) Enters the total cumulative mileage on the form in the event that it is known that the

mileage indicated on the odometer is beyond its designated mechanical limits;

   (4) Enters the same information as set forth in subdivisions (1) through (3) of this

subsection on the owner's title certificate; and

   (5) The owner of a motor vehicle shall supply its mileage upon the annual renewal

registration form supplied by the division of motor vehicles.

   (c) It shall be a violation of this chapter for any person to give a false statement to a

transferee under the provisions of this section; provided, however, that no person shall be

in violation of this chapter where a vehicle has been resold in reliance on the required

statement of the prior owner made pursuant to this section.

   (d) No motor vehicle, previously registered in another state, shall be registered for use

in this state unless the application for a certificate of title in Rhode Island is accompanied

by the prior owner's certificate of title and a form as set forth in subdivision (b)(1) of this

ection.

   (e) The certificate of title of the motor vehicle issued to the new owner by the state of

Rhode Island shall:

   (1) Be printed using a process determined by the director to be the most efficient and

effective means of avoiding unauthorized duplication;

   (2) Indicate on its face the mileage required to be disclosed by the transferor under

subsections (b)(1) and (d) of this section; and

   (3) Contains a space for the transferee to disclose the mileage at the time of any future

transfer and to sign and date the disclosure.

   (f) No registration card may be issued in this state for any motor vehicle unless:

   (1) The application for the registration card contains the prior owner's most recent

registration card and the prior owner's title; and

   (2) The new registration card contains such information as provided on the application.

     SECTION 22. Sections 31-25-1, 31-25-6, 31-25-21 – 31-25-23 and 31-25-27.1 of the

General Laws in Chapter 31-25 entitled “Size, Weight and Load Limits” are hereby amended to

read as follows:

31-25-1.  Compliance with chapter required. – (a) (1) Except in reference to §§ 31-25-

16 and 31-25-27 where it shall be considered a violation, it is a civil violation for any carrier to

drive or move or to cause or permit to be driven or moved on any highway any vehicle or

vehicles of a size or weight exceeding the limitations stated in this chapter or otherwise in

violation of this chapter, and the maximum size and weight of vehicles specified in this chapter

shall be lawful throughout this state. Local authorities shall have no power or authority to alter

the limitations except as express authority may be granted in this chapter.

     (2) "Carrier" includes any company or person who furthers their commercial or private

enterprise by use of the vehicle.

     (b) The director of the department of administration transportation shall promulgate rules

and regulations and requirements consistent with this chapter for the application and issuance of

permits for overweight and oversize vehicles or loads.

31-25-6. Maximum number and length of coupled vehicles. – (a) No combination of

vehicles coupled together shall consist of more than three (3) units, a truck-tractor, semi-trailer,

and trailer. The combination of vehicles shall not be restricted in overall length, except that when

a truck-tractor, semi-trailer, and a trailer are used in combination, the trailer or semi-trailer each

shall not exceed twenty-eight and one-half feet (28' 6"), excluding bumpers and accessories.

Provided, however, that combinations of vehicles consisting of three (3) units shall be permitted

to operate only on the interstate highway system and on those highways, streets, and roads

designated by the director of the department of administration transportation.

     (b) Combinations of vehicles consisting of truck-tractor and semi-trailer coupled together

shall not be restricted in overall length, and semi-trailers shall not exceed fifty-three feet (53') in

length, excluding bumpers and accessories. Semi-trailers exceeding forty-eight and one-half feet

(48' 6") shall be permitted to operate only on the interstate highway system and on those

highways, streets and roads designated by the director of the department of administration

transportation. Exceptions to the requirements of this section include the use of a pole trailer and

combinations designed to transport motor vehicles and/or automobiles as authorized in §§ 31-25-

7 and 31-25-8. The provision that no combination of vehicles coupled together shall consist of

more than three (3) units shall not apply to vehicles coupled together by a saddle mount device

used to transport motor vehicles in a drive-away service when no more than three (3) saddle

mounts are used, and equipment used in the combination is approved by Part 393.71 of the

federal motor carrier safety regulations, 49 CFR 393.71, and safety regulations of the division of

motor vehicles of the department of administration revenue of the state of Rhode Island as such

federal and/or state legislation may be amended or revised from time to time. Any owner or

operator found deviating from the approval permitted routes shall be fined a minimum mandatory

fine of five hundred dollars ($500), but not more than one thousand dollars ($1,000).

31-25-21. Power to permit excess size or weight of loads. – (a) The department of

administration transportation, with respect to highways under its jurisdiction may, in its

discretion, upon application in writing and good cause being shown for it, issue a special permit

in writing authorizing the applicant to operate or move a vehicle or combination of vehicles of a

size or weight of vehicle or load exceeding eighty thousand pounds (80,000 lbs.) or otherwise not

in conformity with the provisions of chapters 1 – 27 of this title upon any highway under the

jurisdiction of the party granting the permit and for the maintenance of which the party is

responsible. Permits which have been issued for a full year shall not be required to be renewed for

the period of time for which payment has been made and the application and other required

documentation has been completed and filed. Provided, that neither the department of

administration transportation nor the local authorities may issue permits for divisible loads weighing in

excess of one hundred four thousand-eight hundred pounds (104,800 lbs.), gross vehicle weight,

for five (5) axle vehicles and seventy-six thousand six hundred fifty pounds (76,650 lbs.), gross

vehicle weight, for three (3) axle vehicles.

     (b) The director of the department of administration transportation may enter into

agreements with other states, the District of Columbia and Canadian provinces providing for the

reciprocal enforcement of the overweight or over-dimensional vehicle permit laws of those

jurisdictions entering into the agreement.

     (c) Trip permit fee. A fee of twenty dollars ($ 20.00) shall be paid to the division of motor

vehicles for the issuance of each non-reducible vehicle or load permit.

     (d) Annual fee. A fee of one hundred dollars ($100) paid to the division of motor vehicles

shall exempt the payor from the necessity of paying trip permit fees as found in subsection (c) of

this section. However, payment of the fee shall not be deemed to authorize non-compliance with

the rules and regulations promulgated by the department of administration transportation entitled

"State of Rhode Island Manual for Overweight and Oversize Vehicle Permits".

     (e) Blanket permits may be issued, as determined by the department of administration

transportation, for intrastate movement of non-reducible loads upon payment of the fee set forth

in subsection (d) of this section. The permits may not exceed one year and shall be limited to a

maximum overall length of seventy-five feet (75') and maximum overall width of eleven feet,

eleven inches (11'11").

31-25-22. Application for excess load permit. – (a) The application for an excess load

permit pursuant to § 31-25-21 shall specifically describe the vehicle or vehicles and load to be

operated or moved, and the particular highways for which the permit to operate is requested and

whether the permit is requested for a single trip or for continuous operation.

     (b) For continuous operation of divisible loads, specifically described vehicle or vehicles

must be certified originally by the manufacturer of them to possess the braking and carrying

capacity for the weight specified on the application.

     (c) Upon approval of the application or renewal of divisible load permits, the department

of administration revenue shall provide identification devices to be placed on the lower left corner

of the driver's side of the windshield for trucks and tractors and on the front left corner of the

driver's side for trailers.

31-25-23. Conditions and restrictions on excess load permits. – (a) The department of

administration revenue or local authority is authorized to issue or withhold a permit at its

discretion, or if the permit is issued, to limit the number of trips, or to establish seasonal or other

time limitations within which the described vehicles may be operated on the indicated highways,

or otherwise to limit or prescribe conditions of operation of the vehicle or vehicles, when

necessary to assure against undue damage to the road foundations, surfaces, or structures, and

may require any undertaking or other security that may be deemed necessary to compensate for

any injury to any roadway or road structure.

     (b) Whenever a permit is issued by the department of administration revenue or local

authority for continuous operation, the permit shall not be issued for a period in excess of the

registration date of the subject vehicle.

     (c) Upon re-registration of the subject vehicle, permits shall be issued by the department

of administration revenue or local authority, upon the re-certification of the braking and carrying

capacity of the subject vehicle as specified on the expired permit.

31-25-27.1. Weight restrictions on the Veterans Memorial Parkway – East

Providence. – (a) No motor vehicle with a gross weight exceeding two (2) tons except those

listed in this section shall be allowed to travel the Veterans Memorial Parkway in the city of East

Providence.

     (b) The director of the department of administration revenue is directed to post signs to

limit access as prescribed in subsection (a) of this section.

     (c) The following vehicles shall be exempt from the provisions of this section: vehicles of

a fire department, police vehicles, corrections vehicles, ambulances, emergency vehicles, state

vehicles, municipal vehicles, vehicles of the Rhode Island public transit authority, marked school

administration vehicles, and delivery vehicles whose destination is addressed on the parkway.

     (d) The department of administration revenue or local authority is authorized in

accordance with the provisions of § 31-25-23 to issue or withhold permits to all vehicles other

than those enumerated in this section.

     SECTION 23. Section 31-28-7 of the General Laws in Chapter 31-28 entitled “Parking

Facilities and Privileges” is hereby amended to read as follows:

31-28-7.  Motor vehicle plates for persons with disabilities – Entitlement –

Designated parking spaces – Violations. – (a) Persons, as defined in subsection (h) of this

section, upon application and proof of permanent or long-term disability to the division of motor

vehicles, shall be issued one motor vehicle disability parking privilege placard or in the case of a

motorcycle, one motor vehicle sticker, of blue which shall be imprinted with the white

international symbol of access, certificate number, the words "Rhode Island Disability Parking

Permit" and shall bear the expiration date upon its face. A placard or motorcycle sticker issued to

a person whose disability is temporary shall be substantially similar to that issued to a person with

a permanent or long term disability. The temporary placard, however, shall be a red placard with

a white international symbol of access, certificate number, the words "Rhode Island Disability

Parking Permit" and shall bear the expiration dates upon its face. Persons issued a placard or

motorcycle sticker pursuant to this section shall be entitled to the immunities of §§ 31-28-4 and

31-28-6. The placard shall conform to the Uniform Parking System for Disabled Drivers standard

issued by the United States Department of Transportation. If an application for a placard or

motorcycle sticker is denied, the division of motor vehicles shall promptly notify the applicant in

writing, stating the specific reason(s) for the denial, and advising the applicant of the procedures

for requesting a hearing to appeal the denial. Prior to the appeal hearing, the applicant shall be

provided with any and all documents relied upon by the division in denying the application. If an

application contains a physician certification that the applicant is sufficiently disabled to require a

placard or motorcycle sticker, and the division has not provided specific reasons in its denial

letter to the applicant, the hearing officer shall summarily order that a placard or motorcycle

sticker be provided to the applicant. At all other hearings of application denials where a physician

certification has been provided, the division shall bear the burden of proof that the individual is

not entitled to a placard or motorcycle sticker pursuant to this chapter.

     (b) A placard issued pursuant to this section shall be portable and used only when the

person is being transported. The placard is to be hung from the rear view mirror so as to be seen

through the front or rear windshield of the motor vehicle. A placard may be issued to a person

with a disability who does not own a motor vehicle, to be used only when he or she is being

transported. A motorcycle sticker issued pursuant to this section shall not be portable and shall be

affixed to the rear plate of the motorcycle.

     (c) (1) The certificate of entitlement to the placard or motorcycle sticker shall be renewed

every three (3) years for individuals with a long-term disability, as defined in subsection (d) of

this section, and the renewal application shall require a physician's certification that the condition

has not changed since the previous approval, and three (3) years for individuals with a permanent

disability as defined in subsection (h) of this section, in accordance with a schedule prepared by

the division of motor vehicles that uses the last name of an individual to determine the month of

renewal. If an application or subsequent renewal is accompanied by a physician's certification

that the applicant's condition is a chronic, permanent impairment and that application is approved,

then any subsequent renewal shall be authorized upon receipt of a notarized affidavit from the

applicant or applicant's, guardian or legal representative or a certificate from the applicant's

physician that his or her condition has not changed since the previous approval.

     (2) The certificate of entitlement to the placard or motorcycle sticker shall be covered

with plastic or similar material. The applicant shall, upon timely renewal, receive a sticker

bearing the expiration date of the certificate of entitlement to be affixed across the expiration date

of the disability parking privilege placard or in the case of a motorcycle the applicant shall

receive a new motorcycle sticker. The division of motor vehicles shall establish rules and

regulations allowing for the renewal of the certificates of entitlement by mail.

     (3) Whenever the division of motor vehicles proposes to suspend, revoke or fail to renew

the certificate of entitlement for noncompliance with the requirements of this section or for

violation of subsection (h) of this section, the individual shall first be entitled to a hearing before

the division of motor vehicles to contest the proposed action. At the hearing, the division of motor

vehicles shall bear the burden of proof that the individual is not entitled to the placard or

motorcycle sticker pursuant to this chapter. There shall be no renewal fee charged for the placards

or motorcycle sticker. The division of motor vehicles shall be authorized to issue a temporary

disability parking privilege placard or motorcycle sticker immediately upon receipt of an

application for individuals with a temporary impairment, as defined in subsection (h) of this

section. A temporary placard or motorcycle sticker shall be valid for sixty (60) days from the date

of issuance. Temporary placards or motorcycle stickers may be renewed for a period of one year

or less, as determined by the medical advisory board upon application if the disability persists.

The division of motor vehicles shall subsequently review the applications in accordance with the

procedures currently in effect as to applications from persons whose disability is long term. Any

issuance which, after subsequent review, shall be found to be inappropriate shall be revoked and

notice of the revocation shall be sent to the applicant.

     (d) A person, other than a person with a disability, who for his or her own purposes uses

the parking privilege placard, shall be fined five hundred dollars ($ 500) for each violation. A

person issued a special placard who uses the placard after expiration, or who shall allow

unauthorized use of the disability parking placard or sticker, may be subject to immediate

revocation of the use of the placard by the division of motor vehicles, and subject to a fine of five

hundred dollars ($ 500).

     (e) Disability parking spaces shall be designated and identified by the posting of signs

above ground level incorporating the international symbol of access of white on blue, and the

words "Handicapped Parking", "Disability Parking," "Disabled Parking," or "Reserved Parking"

at each space, at both ends of a row or series of adjacent disability parking spaces, or at the

entrance to a parking lot restricted to only disability parking.

     (f) A person, other than a person issued a special placard or motorcycle sticker pursuant

to this section, who parks a vehicle in a parking space designated for persons with disabilities,

shall be fined: (1) one hundred dollars ($ 100) for a first violation, (2) one hundred seventy-five

dollars ($ 175) for a second violation, and (3) three hundred twenty-five dollars ($ 325) for a third

or subsequent violation. The vehicle may be subject to towing at the owner's expense. Provided

further, that it shall not be unlawful for a person to park a vehicle in a space designated for person

with disabilities if that person is transporting a person who has been issued a special placard and

is properly displaying the placard on the vehicle.

     (g) Enforcement of the parking provisions of this section shall be enforced by the local or

state authorities on public or private property when the location of the parking spaces is within

the purview of the State Building Code, chapter 27.3 of title 23.

     (h) Definitions. For the purpose of this section:

     (1) "Disabled" or "disability" means a permanent or long-term impairment which

prevents or impedes walking, which shall include but not be limited to: (i) an impairment which

prevents walking and requires use of a wheelchair; (ii) an impairment which involuntarily causes

difficulty or insecurity in walking or climbing stairs with or without the need to use braces,

crutches, canes or artificial support; (iii) an impairment caused by amputation, arthritis, blindness

(including legally blind), or orthopedic condition; or (iv) an impairment in respiratory,

circulatory, or neurological health which limits the person's walking capability. Persons with

disabilities may be capable of working or may be presently working.

     (2) "Long-term disability" means an impairment which is potentially reversible or may

improve with appropriate medical treatment. At the time of application and or renewal, the

impairment should not be expected to improve prior to the expiration of the certification, to a

point where the individual does not meet the provisions of subdivision (1) of this subsection.

     (3) "Permanent disability" means an impairment which is non-reversible.

     (4) "Temporary impairment" means an impairment which is expected to improve to a

point where the individual does not meet the provisions of subdivision (1) of this subsection,

within two (2) years of the application.

     (i) The department of administration revenue shall inform each licensed driver of the

certificate procedures and parking restrictions of this section and §§ 31-28-4 and 31-28-6, and a

facsimile of the portable placards and motorcycle stickers issued under this section shall be sent

to the enforcing authority of each state, and each enforcing authority shall be informed of the

parking restrictions of this section and §§ 31-28-4 and 31-28-6. Recipients of disability parking

privilege placards shall also receive instructions on their use and the penalties for misuse, when

the placard is initially issued.

     SECTION 24. Section 31-36-1 of the General Laws in Chapter 31-36 entitled “Motor

Fuel Tax” is hereby amended to read as follows:

31-36-1. Definitions. – Terms in this chapter and chapter 37 of this title are construed as

follows:

     (1) "Administrator" means the tax administrator.

     (2) "Distributor" includes any person, association of persons, firm, or corporation,

wherever resident or located, who shall import or cause to be imported into this state, for use or

for sale, fuels, and also any person, association of persons, firm or corporation who shall produce,

refine, manufacture, or compound fuels within this state.

     (3) "Filling station" includes any place, location, or station where fuels are offered for

sale at retail.

     (4) "Fuels" includes gasoline, benzol, naphtha, and other volatile and inflammable liquids

(other than lubricating oils, diesel fuel for the propulsion of marine craft, fuels used for the

propulsion of airplanes, oils used for heating purposes, manufactured and organically produced

biodiesel fuels that results in employment in Rhode Island at a manufacturing facility for

organically produced biodiesel fuel), used or suitable for use for operating or propelling motor

vehicles with internal combustion engines. This does not include benzol and naphtha sold or used

for a purpose other than for the operation or propulsion of motor vehicles. Any article or product

represented as gasoline for use in internal combustion type engines, used in motor vehicles, shall

be equal to or better in quality and specification than that known as "United States government

motor gasoline."

     (5) "Investigator and examiner" means any person appointed by the tax administrator to

act as an investigator and examiner.

     (6) "Owner" includes any person, association of persons, firm, or corporation offering

fuels for sale at retail.

     (7) "Peddlers" means any person, association of persons, firm or corporation, except a

distributor as defined in this chapter, who shall distribute gasoline by tank wagon in this state.

     (8) "Public highways" includes any state or other highway and any public street, avenue,

alley, park, parkway, driveway, or public place in any city or town.

     (9) "Pump" includes any apparatus or machine for raising, driving, exhausting, or

compressing fluids, and used in the sale and distribution of fuels.

     (10) "Purchaser" includes any person, association of persons, firm, or corporation,

wherever resident or located, who purchases fuels from a distributor, for use or resale, and any

person, association of persons, firm or corporation who purchases from a distributor, gasoline or

other volatile and inflammable liquids (other than lubricating oils and oils used for heating

purposes) for use other than for propelling motor vehicles.

(11) "Retail dealer" means any person, association of persons, firm, or corporation

operating a filling station as herein defined in this chapter for the sale or dispensing of motor fuel

by delivery into service tank or tanks of any highway motor vehicle which is propelled by an

internal combustion motor, other than the highway motor vehicle belonging to the person owning

or operating the place of business; provided, however, that sales by a manufacturer or distributor

shall not constitute them retail dealers.

     (12) "State highways" includes only those public highways or those parts of them that

shall be constructed or maintained by the department of administration transportation.

     SECTION 25. Section 31-36.1-9 of the General Laws in Chapter 31-36.1 entitled “Fuel

Use Reporting Law” is hereby amended to read as follows:

31-36.1-9.  Enforcement powers of the administrator. – (a) The administrator may, in

the enforcement of this chapter, hold hearings and take testimony, and for those purposes may

issue subpoenas and compel attendance of witnesses, and may conduct investigations which the

administrator deems necessary.

      (b) The tax administrator is authorized to avail him or herself of the services of the state

police, the department of administration revenue, and the public utilities commission in enforcing

the provisions of this chapter.

     SECTION 26. Sections 31-38-2 – 31-38-4, 31-38-6 – 31-38-8, 31-38-10 – 31-38-15, 31-

38-17 and 31-38-20 of the General Laws in Chapter 31-38 entitled “Inspection of Motor

Vehicles” are hereby amended to read as follows:

31-38-2.  Inspection by any proper officer. – (a) The director of the department of

administration revenue, members of the state and local police, and any other officers and

employees of the division of motor vehicles as the director of the department of administration

revenue may designate, may at any time require the seller at retail or driver of the vehicle to stop

and submit the vehicle to an inspection and test with reference to it as may be appropriate.

     (b) In the event the vehicle is found to be in unsafe condition or any required part or

equipment is not in proper repair and adjustment, the officer shall give a written notice to the

seller at retail or driver and shall send a copy to the director of the department of administration

revenue. The notice shall require that the vehicle be placed in safe condition and its equipment in

proper repair and adjustment, specifying the particulars with reference to it, and that the notice be

approved within five (5) days.

     (c) The director of the department of administration revenue, or the director's designee,

upon written notice, may require the seller at retail, owner, or driver to submit the vehicle to the

state inspection facility for inspection. If the notice is not complied with, the director may

suspend the registration of the vehicle described in the notice.

31-38-3. Owners and drivers to comply with inspection laws. – (a) No seller at retail

or person driving a vehicle shall refuse to submit the vehicle to an inspection and test as required

by § 31-38-2.

     (b) Every seller at retail, owner, or driver, upon receiving a notice as provided in § 31-38-

2, shall comply with it and shall within five (5) days forward the approved notice to the

department of administration revenue. In the event of noncompliance with this subsection, the

vehicle shall not be operated on any highways of this state.

     (c) Any vehicle which is found to be in such unsafe condition as to the brakes, steering,

or other equipment as to be hazardous to permit it to be sold or driven from the place of

inspection, then the vehicle shall not be permitted to be operated under its own power. The

registration shall be immediately suspended by the department of administration revenue and the

plates and certificates immediately returned to the department of administration revenue.

31-38-4.  Director of department of administration to require periodic inspection. –

Director of department of revenue to require periodic inspection. -- (a) (1) The director of

administration revenue shall at least once each year, but not more frequently than twice each year,

or on the schedule defined pursuant to chapter 47.1 of this title require that every vehicle, trailer,

semitrailer, and pole trailer registered in this state or upon a retail seller's premise, be inspected

and that an official certificate of inspection and approval be obtained for the vehicle, provided,

that the director of administration revenue shall require the first inspection of any new motor

vehicle within two (2) years from the date of purchase or before the vehicle accumulates twenty-

four thousand (24,000) miles whichever occurs first.

     (2) The inspections shall be made and the certificates obtained with respect to the

mechanism, brakes, and equipment of the vehicle as shall be designated by the director of

department of administration revenue.

     (3) The director of the department of administration revenue is authorized to make

necessary rules and regulations for the administration and enforcement of this chapter including,

but not limited to, upgraded standards of operation and standards for mechanical testing

equipment, and to designate any period or periods of time during which sellers at retail and

owners of any vehicles, subject to this chapter, shall display upon the vehicles certificates of

inspection and approval, or shall produce these certificates upon demand of any proper officer or

employee of the department of administration revenue designated by the director of the

department of administration revenue. In addition, the director shall require each inspection

facility to file a copy of their active garage keeper's legal liability insurance policy and maintain a

minimum of twenty-five thousand dollars ($25,000) liability coverage. Said coverage shall be

purchased for the purpose of insuring against any damage sustained to a vehicle while under the

control of the inspection facility.

     (b) The director of the department of administration revenue may authorize the

acceptance in this state of a certificate of inspection and approval issued in another state having

an inspection law similar to this chapter, and may extend the time within which a certificate shall

be obtained.

     (c) The director of the department of administration revenue, or the director's designee,

may suspend the registration of any vehicle which he or she determines is in such unsafe

condition as to constitute a menace to safety, or which, after notice and demand, is not equipped

as required in this chapter or for which a required certificate of inspection and approval has not

been obtained.

     (d) The director of the department of administration revenue shall provide for a staggered

inspection system by regulations.

31-38-6.  Appointment of official inspection stations. – (a) For the purpose of making

inspections and issuing official certificates of inspection and approval as provided in this chapter,

the director of the department of administration revenue, or the director's designee, shall issue

permits for and furnish instructions and all necessary forms to official inspection stations for the

inspection of vehicles as required in this chapter and the issuance of official certificates of

inspection and approval. There shall be a separate permit required to inspect all trailers or semi-

trailers used to transport horses or other livestock, irrespective of the registered gross weight of

the trailers and semi-trailers.

     (b) Application for the permit set forth in subsection (a) of this section shall be made

upon an official form and shall be granted only when the director of the department of

administration revenue or the director's designee, is satisfied that the station is properly equipped

and has competent personnel to make the inspections and adjustments, and will be properly

conducted. The director of the department of administration revenue, or the director's designee,

before issuing a permit may require the applicant to file a bond conditioned that it will make

compensation for any damage to a vehicle during an inspection or adjustment due to negligence

on the part of the applicant or its employees.

     (c) The director of the department of administration revenue, or the director's designee,

shall properly supervise and cause inspections to be made of the stations and shall suspend or

revoke and require the surrender of the permit issued to a station which he or she finds is not

properly equipped or has violated any of the conditions of his or her permit of inspection. The

director of the department of administration revenue, or the director's designee, shall maintain and

post at the department of administration revenue lists of all stations holding permits and of those

whose permits have been suspended or revoked.

     (d) The permits shall be issued for a period of one year and upon payment to the director

of the department of administration revenue of a fee of twenty-five dollars ($25.00) annually, and

the monies received shall be turned over to the general treasurer to be deposited in the general

funds of the state.

     (e) The director of the department of administration revenue, or the director's designee,

shall issue a duplicate permit upon the payment of a fee of one dollar ($1.00) if one is requested

by the owner of the official station who states in writing that the original was lost, destroyed, or

stolen.

31-38-7. Operation of official stations. – (a) No permit for an official station shall be

assigned or transferred or used at any location other than designated in it, and the permit shall be

posted in a conspicuous place at the designated location.

     (b) The state certified person operating an official inspection station shall issue a

certificate of inspection and approval upon an official form to the owner of a vehicle upon

inspection of the vehicle and determining that its equipment required under the provisions of this

chapter is in good condition and proper adjustment, otherwise, no certificate shall be issued. A

record and report shall be made of every inspection and every certificate issued. The records shall

be kept available for review by the motor vehicle inspection station commission or those

employees of the department of administration revenue that the director may designate.

     (c) The following fees shall be charged for inspection and issuance of certificate of

inspection and approval:

     (1) For every vehicle with a registered gross weight of not more than eight thousand five

hundred pounds (8,500 lbs.), the fee shall be included with the fee charged pursuant to § 31-47.1-

11;

     (2) For every vehicle of a registered gross weight of more than eight thousand five

hundred pounds (8,500 lbs.) or more, except trailers, fifteen dollars ($ 15.00);

     (3) For every motorcycle and electrically powered vehicle, eleven dollars ($ 11.00);

     (4) For every trailer or semi-trailer with a registered gross weight of more than one

thousand pounds (1,000 lbs.), eleven dollars ($ 11.00); and

     (5) Provided that for the inspection of vehicles used for the transportation of persons for

hire, as provided in § 31-22-12, and subject to an inspection pursuant to chapter 47.1 of this title,

the fee shall be included with the fee charged pursuant to § 31-47.1-11.

     (d) The director of the department of administration revenue may establish a state

inspection facility at which any motor vehicle may be reinspected at no cost to the owner. The

state inspection facility may inspect all public conveyance vehicles or these inspections may be

otherwise provided for by the director, or any other vehicles which in the opinion of the director

of administration revenue, or his or her designee, require specific testing to ensure for the health

and safety of the general public.

31-38-8.  Improper representation as official station. – (a) No person shall in any

manner represent any place as an official inspection station unless the station is operating under a

valid permit issued by the director of the department of administration revenue or the director's

designee.

31-38-10.  Grounds for denial, suspension, or revocation of permit. – The director

may deny an application for a permit or suspend or revoke a permit after it has been granted for

any of the following reasons:

     The director may deny an application for a permit or suspend or revoke a permit after it

has been granted for any of the following reasons:

     (1) On proof of unfitness of the applicant to do business as a motor vehicle inspection

station;

     (2) For any misstatement by the applicant in the application for the permit;

     (3) For any failure to comply with the provisions of this section or with any rule or

regulation promulgated by the director of the department of administration revenue;

(4) For defrauding any customer;

    (5) For dismantling any vehicle for repair without the authorization of the owner;

    (6) For refusal to surrender any vehicle to its owner upon tender of payment of the proper

charges for towing and/or work done on the vehicle;

    (7) For having indulged in any unconscionable practice relating to the business as a

motor vehicle inspection station;

    (8) For willful failure to perform work as contracted for;

    (9) For failure to comply with the safety standards of the industry;

    (10) For failure to properly equip andoor conduct the inspection station;

    (11) For failure to pay the required fees as provided in this chapter;

    (12) For providing an inspection sticker to a motor vehicle which is equipped with a

sunscreening device which does not comply with the provisions of chapter 23.3 of this title.

31-38-11. Penalty for violation. – Any person violating any of the provisions of §§ 31-

38-1 – 31-38-10 of this chapter, or of the rules and regulations established by the director of the

department of administration revenue as provided in this chapter, shall upon conviction be

punished by a fine of not more than five hundred dollars ($500.00) or by imprisonment of not

more than thirty (30) days or by both a fine and imprisonment. The director of the department of

administration revenue shall revoke the permit of any inspection station who shall be convicted

more than once for violations.

31-38-12. Fee for inspection certificates. – (a) The director of the department of

administration revenue, or his or her designee, shall collect a fee of four dollars ($4.00) for each

certificate of inspection issued, and the monies received shall be turned over to the general

treasurer to be deposited in the general funds of the state.

     (b) Unused inspection stickers purchased by inspection stations shall be re-purchased by

the state if returned in good condition to the director of the department of administration revenue

or his or her designee within three (3) months of the inspection year for which the sticker was

issued.

31-38-13. Fleet operators. – Every person who shall provide maintenance facilities for

the servicing of vehicles used in his or her business, except licensed motor vehicle dealers, which

facilities shall be approved by the director of the department of administration revenue, and shall

maintain any records and follow any procedures that shall be established by the director, shall be

qualified as an official inspection station for the vehicles. The person shall not issue inspection

certificates for any vehicle not used in the operation of the business.

31-38-14.  Vehicles exempt from inspections. – (a) The following vehicles shall be

exempt from inspections:

     (1) All trailers or semi-trailers having a gross weight of one thousand pounds (1,000 lbs.)

or less;

     (2) Any special mobile equipment which is not required to be registered; and

     (3) Vehicles that are limited in their scope of operation as determined by the director of

the department of administration revenue.

31-38-15.  Motor vehicle inspection commission. – (a) Within the department of

administration revenue there shall be a motor vehicle inspection commission, referred to in this

chapter as the "commission", which shall function as a unit in the department. The commission

shall consist of seven (7) members who shall be appointed by the governor, with the advice and

consent of the senate. In making said appointments, the governor shall give due consideration to

including in the commission's membership one or more garage keeper(s) and/or inspection station

owner(s).

     (b) The tenure of all members of the commission as of the effective date of this act

[March 29, 2006] shall expire on the effective date of this act [March 29, 2006], and the governor

shall nominate seven (7) new members as follows:

     (1) The governor shall appoint seven (7) members of the commission; three (3) of whom

shall serve initial terms of three (3) years; two (2) of whom shall serve an initial term of two (2)

years; and two (2) of whom shall serve an initial term of one year.

     (2) Thereafter, all members of the commission shall be appointed to serve three (3) year

terms.

     (c) The governor shall designate one member of the commission to serve as chairperson.

The commission may elect from among its members such other officers as they deem necessary.

     (d) No person shall be eligible for appointment to the commission after the effective date

of this act [March 29, 2006] unless he or she is a resident of this state.

     (e) Four (4) members of the commission shall constitute a quorum.

     (f) Members of the commission shall be removable by the governor pursuant to the

provisions of § 36-1-7 of the general laws and for cause only, and removal solely for partisan or

personal reasons unrelated to capacity of fitness for the office shall be unlawful.

     (g) Within ninety (90) days after the end of each fiscal year, the commission 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, including

meeting minutes, subjects addressed, decisions rendered, licenses considered and their

disposition, 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 commission; a summary of any training courses held pursuant to the

provisions of this section; a briefing on anticipated activities in the upcoming fiscal year; and

findings and recommendations for improvements. The report shall be posted electronically on the

general assembly and secretary of state's websites as prescribed in § 42-20-8.2. The director of

the department of administration revenue shall be responsible for the enforcement of the

provisions of this subsection.

     (h) To conduct a training course for newly appointed and qualified members within six

(6) months of their qualification or designation. The course shall be developed by the chair of the

commission, approved by the commission, and conducted by the chair of the commission. The

commission may approve the use of any commission or staff members or other individuals to

assist with training. The training course shall include instruction in the following areas: the

provisions of chapters 42-46, 36-14, and 38-2; and the commission's rules and regulations. The

director of the department of administration revenue shall, within ninety (90) days of the effective

date of this act [March 29, 2006], prepare and disseminate training material relating to the

provisions of chapters 42-46, 36-14, and 38-2.

31-38-17. Procedure for a review of an order of the director of administration. –

Procedure for a review of an order of the director of revenue. -- (a) Any person aggrieved by

an order of the director of administration revenue pertaining to either a suspension, revocation, or

denial of an application for a permit may appeal from the order of the director by filing a notice

of request for review of the director's order with the sixth division of the district court pursuant to

the procedures set forth in § 42-35-15.

     (b) The filing of a petition to review shall not operate as a stay of the order of the director

of administration revenue and the order shall remain in full force and effect during the pendency

of the review.

31-38-20.  Appropriations and disbursements. – The general assembly shall annually

appropriate, out of any money not otherwise appropriated, any sums that it may deem necessary

for the purpose of this chapter. The state controller is authorized and directed to draw his or her

orders upon the general treasurer for the payment of the sum, or so much of it that may be

required from time to time, upon receipt by him or her of properly authenticated vouchers

approved by the director of the department of administration revenue.

     SECTION 27. Section 31-41.1-6 of the General Laws in Chapter 31-41.1 entitled

“Adjudication of Traffic Offenses” is hereby amended to read as follows:

31-41.1-6. Hearings. – (a) Every hearing for the adjudication of a traffic violation, as

provided by this chapter, shall be held before a judge or magistrate of the traffic tribunal or a

judge of the municipal court, where provided by law. The burden of proof shall be upon the state,

and no charge may be established except by clear and convincing evidence. A verbatim recording

shall be made of all proceedings. The chief judge of the district court may prescribe, by rule or

regulation, the procedures for the conduct of the hearings and for pre-hearing discovery.

     (b) After due consideration of the evidence and arguments, the judge or magistrate shall

determine whether the charges have been established, and appropriate findings of fact shall be

made on the record. If the charges are not established, an order dismissing the charges shall be

entered. If a determination is made that a charge has been established or if an answer admitting

the charge has been received, an appropriate order shall be entered in the records of the traffic

tribunal.

     (c) An order entered after the receipt of an answer admitting the charge or where a

determination is made that the charge has been established shall be civil in nature, and shall be

treated as an adjudication that a violation has been committed. A judge or magistrate may include

in the order the imposition of any penalty authorized by any provisions of this title for the

violation, except that no penalty for it shall include imprisonment. A judge or magistrate may

order the suspension or revocation of a license or of a registration in the name of the defendant in

accordance with any provisions of this title which authorize the suspension or revocation of a

license or of a registration, or may order the suspension of the license and the registration of the

defendant for the willful failure to pay a fine previously imposed. In addition, after notice and

opportunity to be heard, a judge or magistrate may order the suspension of the registration of the

vehicle with which the violation was committed, if the defendant has willfully failed to pay a fine

previously imposed.

     (d) A judge or magistrate may, as authorized by law, order a motorist to attend a

rehabilitative driving course operated under the jurisdiction of a college or university accredited

by the state of Rhode Island, or the trained personnel of the department of administration revenue.

An order to attend a course may also include a provision to pay reasonable tuition for the course

to the institution in an amount not to exceed twenty-five dollars ($25.00). The order shall contain

findings of fact. Failure to comply with an order of attendance may, after notice and hearing,

result in the suspension or revocation of a person's license or registration.

     SECTION 28. Section 31-45-2 of the General Laws in Chapter 31-45 entitled “Noise

Limits for Motor Vehicles” is hereby amended to read as follows:

31-45-2. Establishment of regulations. – The director of the department of

administration revenue is authorized to adopt rules, regulations, and procedures to be utilized in

the enforcement of this chapter. The director is further authorized to lower the noise standards set

forth in this chapter consistent with economic and technological feasibility. The procedure shall

allow, to the extent feasible, noise measurement and enforcement action to be accomplished in

reasonably confined areas such as residential areas. The adoption of those rules, regulations, and

limits shall be pursuant to chapter 35 of title 42.

     SECTION 29. Sections 31-47-2 and 31-47-8.1 of the General Laws in Chapter 31-47

entitled “Motor Vehicle Reparations Act” are hereby amended to read as follows:

31-47-2. Definitions. -- As used in this chapter the term:

     (1) "Accident" or "motor vehicle accident" means any accident involving a motor vehicle

which results in bodily injury to or death of any person, or damage to the property of any person

in excess of five hundred dollars ($ 500).

     (2) "Administrator" means the administrator of the division of motor vehicles in the

department of administration revenue.

31-47-8.1. Verification of proof of financial security. – (a) The administrator of the

division of motor vehicles shall select random samples of registrations of motor vehicles subject

to this chapter, or owners of them, for the purpose of verifying whether or not the motor vehicles

have proof of financial security as defined in this chapter. The administrator of the division of

motor vehicles shall verify proof of financial security by sending requests for verification to the

owner and/or insurer of the randomly selected motor vehicles.

(b) In addition to general random samples of motor vehicle registrations, the

administrator of the division of motor vehicles shall select for verification other random samples,

including, but not limited to, registrations of motor vehicles owned by persons:

     (1) Whose motor vehicle registrations during the preceding four (4) years have been

suspended pursuant to the provisions of this chapter;

     (2) Who during the preceding four (4) years have been convicted of violating the

provisions of this chapter while operating vehicles owned by other persons;

     (3) Whose driving privileges have been suspended during the preceding four (4) years; or

     (4) Who during the preceding four (4) years acquired ownership of motor vehicles while

the registrations of those vehicles under the previous owners were suspended pursuant to the

provisions of this chapter.

     (c) Upon receiving certification from the department of administration revenue under §

31-26-6 of the name of an owner or operator of any motor vehicle involved in an accident, the

administrator of the division of motor vehicles shall verify whether or not at the time of the

accident the motor vehicle was covered by proof of financial security as defined in this chapter.

     SECTION 30. Sections 31-47.1-2 and 31-47.1-4 of the General Laws in Chapter 31-47.1

entitled “Motor Vehicle Emissions Inspection Program” are hereby amended to read as follows:

31-47.1-2. Definitions. – As used in this chapter, unless the context otherwise indicates,

the following terms have the following meanings:

     As used in this chapter, unless the context otherwise indicates, the following terms have

the following meanings:

     (1) "Authorized inspection and repair stations (AIRS)" means a facility which has been

authorized by the department to conduct motor vehicle emissions inspections and re-inspections.

     (2) "Compliance certificate" means a written statement, instrument or device indicating

that a motor vehicle complies with the standards and criteria for motor vehicle emissions

inspection.

     (3) "Department" means the department of administration revenue.

     (4) "Motor vehicle" means every vehicle which is self-propelled and every vehicle which

is propelled by electric power obtained from overhead trolley wires, but not operated upon rails,

except vehicles moved exclusively by human power and motorized wheelchairs.

     (5) "Motor vehicle emissions inspection" means a test of the emissions of air

contaminants from a motor vehicle and any visual and functional checks related to the emission

of air contaminants from a motor vehicle conducted pursuant to this chapter.

     (6) "Waiver certificate" means a written statement, instrument or device indicating the

requirement of compliance with the standards and criteria for motor vehicle emissions inspection

for a particular motor vehicle has been waived.

31-47.1-4. Law enforcement. – Any law enforcement officer or designee of the director

of the department of administration revenue whose duty it is to enforce laws related to motor

vehicles, may demand and inspect any certificate issued under this chapter.

     SECTION 31. Sections 31-47.2-2 and 31-47.2-5 of the General Laws in Chapter 31-47.2

entitled “Heavy Duty Diesel Vehicle Emissions Inspections” are hereby amended to read as

follows:

31-47.2-2. Inspection requirement. – (a) The administrator of the division of motor

vehicles shall, at the direction of the director of the department of administration revenue and in

coordination with the department of environmental management, establish rules and regulations

and develop testing techniques and emission standards for motor vehicles subject to the

provisions of this chapter.

     (b) Motor vehicles subject to this chapter shall be determined by regulation, and shall include,

but not necessarily be limited to, all diesel powered trucks and buses of all model years and over

eight thousand five hundred pounds (8,500 lbs.) gross vehicle weight rating that operate on the

highways of Rhode Island.

    (c) Standards for opacity of emissions shall be promulgated for all subject vehicles.

    (d) In establishing such standards, the administrator shall review standards in effect in other

states in the northeast United States and to the extent practicable shall establish standards

consistent with standards in other states.

    (e) Emissions inspections may be performed at roadside or in conjunction with any safety

or weight inspection.

    (f) Any motor vehicle which is inspected and found not to comply with the standards for

heavy-duty diesel motor vehicle emissions shall be repaired within forty-five (45) consecutive

calendar days after the inspection so as to comply with the standards for heavy-duty diesel

motor vehicle emissions, or not be operated on the highways of the state.

31-47.2-5. Inspection fee. – A fee, established in accordance with the rules and

regulations of the department of administration revenue, is to be charged for each motor vehicle

inspected. The amount of the fee collected shall provide for the cost of inspection, the cost of

administering the motor vehicle inspection program, and other costs provided by law.

     SECTION 32. Section 31-49-4 of the General Laws in Chapter 31-49 entitled “Ignition

Interlock Systems” is hereby amended to read as follows:

31-49-4. Warning label. – (a) (1) The division of motor vehicles shall design and adopt a

warning label to be affixed to an ignition interlock system on installation. The warning label shall

state that a person tampering with, circumventing, or otherwise misusing the ignition interlock

system is guilty of a misdemeanor, and on conviction, is subject to a fine up to five hundred

dollars ($ 500), or one year imprisonment, or both.

     (2) If the court imposes the use of an ignition interlock system, the sentencing judge shall

cause an appropriate notation to be made on the person's record which clearly sets forth the

requirement for and the period of the use of the system.

     (b) In addition to the requirements of subsection (a) of this section, the court shall:

     (1) Require proof of the installation of the system and periodic reporting by the person

for the purpose of verification of the proper operation of the system; and

     (2) Require the person to have the system monitored for the proper use and accuracy by a

person, firm, corporation or other association to be approved by the department of administration

revenue at least once every six (6) months, or more frequently as the circumstances may require.

     SECTION 33. Section 41-142-4 of the General Laws in Chapter 42-142 entitled

“Department of Revenue” is hereby amended to read as follows:

42-142-4. Division of property valuation and municipal finance. – (a) There is hereby

established within the department of revenue a division of property valuation and municipal

finance. The head of the office shall be the chief of property valuation and municipal finance.

     (b) The division of property valuation and municipal finance shall have the following

duties:

     (i) Provide assistance and guidance to municipalities in complying with state law;

     (ii) To encourage cooperation between municipalities and the state in calculating,

evaluating and distributing state aid;

     (iii) To maintain a data center of information of use to municipalities;

     (iv) To maintain and compute financial and equalized property value Information for the

benefit of municipalities and public policy decision makers;

     (v) To encourage and assure compliance with state laws and policies relating to

municipalities especially in the areas of public disclosure, tax levies, financial reporting, and

property tax issues;

     (vi) To encourage cooperation between municipalities and the state by distributing

information and by providing technical assistance to municipalities;

     (vii) To give guidance to public decision makers on the equitable distribution of state aid

to municipalities;

     (viii) To provide technical assistance for property tax administration.

     SECTION 34. Chapter 42-142 of the General Laws entitled “Department of Revenue” is

hereby amended by adding thereto the following section:

42-142-2.1. Powers and duties of the director of revenue- The director of revenue is

hereby authorized and empowered to make rules and regulations as the director may deem

necessary for the proper administration and enforcement of the laws of Rhode Island for the

department of revenue and its divisions.

     SECTION 35. Section 44-2-2 of the General Laws in Chapter 44-2 entitled “Tax

Officials Generally” is hereby amended to read as follows:

44-2-2. Appropriations for tax officials' association ---The general assembly may

annually appropriate a sum as it may deem necessary, out of any money in the treasury not

otherwise appropriated, to be expended under the supervision of the director of the department of

administration revenue to defray the expenses of the meetings and the publications and other

expenses of the Rhode Island tax officials' association. The state controller is authorized and

directed to draw his or her orders upon the general treasurer for the payment of the sum

appropriated, or so much of the sum as may be from time to time required, upon receipt by the

controller of proper vouchers approved by the director of administration revenue.

     SECTION 36. Sections 44-3-3 and 44-3-29.1 of the General Laws in Chapter 44-3

entitled “Property Subject to Taxation” are hereby amended to read as follows:

44-3-3. Property exempt. – The following property is exempt from taxation.

     (1) Property belonging to the state except as provided in section 44-4-4.1;

     (2) Lands ceded or belonging to the United States;

     (3) Bonds and other securities issued and exempted from taxation by the government of

the United States, or of this state;

     (4) Real estate, used exclusively for military purposes, owned by chartered or

incorporated organizations approved by the adjutant general, and composed of members of the

national guard, the naval militia, or the independent chartered military organizations;

(5) Buildings for free public schools, buildings for religious worship, and the land upon

which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so

far as the buildings and land are occupied and used exclusively for religious or educational

purposes;

(6) Dwellings houses and the land on which they stand, not exceeding one acre in size, or

the minimum lot size for zone in which the dwelling house is located, whichever is the greater,

owned by or held in trust for any religious organization and actually used by its officiating clergy;

provided, further that in the town of Charlestown, where the property previously described in this

paragraph is exempt in total, along with dwelling houses and the land on which they stand in

Charlestown, not exceeding one acre in size, or the minimum lot size for zone in which the

dwelling house is located, whichever is the greater, owned by or held in trust for any religious

organization and actually used by its officiating clergy, or used as a convent, nunnery, or retreat

center by its religious order.

     (7) Intangible personal property owned by, or held in trust for, any religious or charitable

organization, if the principal or income is used or appropriated for religious or charitable

purposes;

(8) Buildings and personal estate owned by any corporation used for a school, academy,

or seminary of learning, and of any incorporated public charitable institution, and the land upon

which the buildings stand and immediately surrounding them to an extent not exceeding one acre,

so far as they are used exclusively for educational purposes, but no property or estate whatever is

hereafter exempt from taxation in any case where any part of its income or profits or of the

business carried on there is divided among its owners or stockholders;

(9) Estates, persons, and families of the president and professors for the time being of

Brown University for not more than ten thousand dollars ($ 10,000) for each officer, the officer's

estate, person, and family included, but only to the extent that any person had claimed and

utilized the exemption prior to, and for a period ending either on or after December 31, 1996;

(10) Property especially exempt by charter unless the exemption has been waived in

whole or in part.

     (11) Lots of land exclusively for burial grounds;

     (12) Property, real and personal, held for or by an incorporated library, society, or any

free public library, or any free public library society, so far as the property is held exclusively for

library purposes, or for the aid or support of the aged poor, or poor friendless children, or the poor

generally, or for a hospital for the sick or disabled;

     (13) Real or personal estate belonging to or held in trust for the benefit of incorporated

organizations of veterans of any war in which the United States has been engaged, the parent

body of which has been incorporated by act of congress, to the extent of four hundred thousand

dollars ($ 400,000) if actually used and occupied by the association; provided, that the city

council of the city of Cranston may by ordinance exempt the real or personal estate as previously

described in this subdivision located within the city of Cranston to the extent of five hundred

thousand dollars ($500,000);

     (14) Property, real and personal, held for or by the fraternal corporation, association, or

body created to build and maintain a building or buildings for its meetings or the meetings of the

general assembly of its members, or subordinate bodies of the fraternity, and for the

accommodation of other fraternal bodies or associations, the entire net income of which real and

personal property is exclusively applied or to be used to build, furnish, and maintain an asylum or

asylums, a home or homes, a school or schools, for the free education or relief of the members of

the fraternity, or the relief, support, and care of worthy and indigent members of the fraternity,

their wives, widows, or orphans, and any fund given or held for the purpose of public education,

almshouses, and the land and buildings used in connection therewith;

(15) Real estate and personal property of any incorporated volunteer fire engine company

or incorporated volunteer ambulance or rescue corps in active service;

(16) The estate of any person who in the judgment of the assessors is unable from

infirmity or poverty to pay the tax; providing, that in the town of Burrillville the tax shall

constitute a lien for five (5) years on the property where the owner is entitled to the exemption. At

the expiration of five (5) years, the lien shall be abated in full. Provided, if the property is sold or

conveyed or if debt secured by the property is refinanced during the five (5) year period, the lien

immediately becomes due and payable; any person claiming the exemption aggrieved by an

adverse decision of an assessor shall appeal the decision to the local board of tax review, and

thereafter according to the provisions of section 44-5-26;

     (17) Household furniture and family stores of a housekeeper in the whole, including

clothing, bedding, and other white goods, books, and all other tangible personal property items

which are common to the normal household;

     (18) Improvements made to any real property to provide a shelter and fallout protection

from nuclear radiation, to the amount of one thousand five hundred dollars ($ 1,500); provided,

that the improvements meet applicable standards for shelter construction established from time to

time by the Rhode Island emergency management agency. The improvements are deemed to

comply with the provisions of any building code or ordinance with respect to the materials or the

methods of construction used and any shelter or its establishment is deemed to comply with the

provisions of any zoning code or ordinance;

     (19) Aircraft for which the fee required by § 1-4-6 has been paid to the tax administrator;

(20) Manufacturer's inventory

     (i) For the purposes of §§ 44-4-10, 44-5-3, 44-5-20, and 44-5-38, a person is deemed to

be a manufacturer within a city or town within this state if that person uses any premises, room,

or place in it primarily for the purpose of transforming raw materials into a finished product for

trade through any or all of the following operations: adapting, altering, finishing, making, and

ornamenting; provided, that public utilities, non-regulated power producers commencing

commercial operation by selling electricity at retail or taking title to generating facilities on or

after July 1, 1997, building and construction contractors, warehousing operations including

distribution bases or outlets of out-of-state manufacturers, and fabricating processes incidental to

warehousing or distribution of raw materials such as alteration of stock for the convenience of a

customer, are excluded from this definition.

     (ii) For the purposes of §§ 44-3-3, 44-4-10, and 44-5-38, the term "manufacturer's

inventory" or any similar term means and includes the manufacturer's raw materials, the

manufacturer's work in process, and finished products manufactured by the manufacturer in this

state, and not sold, leased, or traded by the manufacturer or its title or right to possession

divested; provided, that the term does not include any finished products held by the manufacturer

in any retail store or other similar selling place operated by the manufacturer whether or not the

retail establishment is located in the same building in which the manufacturer operates the

manufacturing plant.

     (iii) For the purpose of § 44-11-2, a "manufacturer" is a person whose principal business

in this state consists of transforming raw materials into a finished product for trade through any or

all of the operations described in paragraph (i) of this subdivision. A person will be deemed to be

principally engaged if the gross receipts which that person derived from the manufacturing

operations in this state during the calendar year or fiscal year mentioned in § 44-11-1 amounted to

more than fifty percent (50%) of the total gross receipts which that person derived from all the

business activities in which that person engaged in this state during the taxable year. For the

purpose of computing the percentage, gross receipts derived by a manufacturer from the sale,

lease, or rental of finished products manufactured by the manufacturer in this state, even though

the manufacturer's store or other selling place may be at a different location from the location of

the manufacturer's manufacturing plant in this state, are deemed to have been derived from

manufacturing.

     (iv) Within the meaning of the preceding paragraphs of this subdivision, the term

"manufacturer" also includes persons who are principally engaged in any of the general activities

coded and listed as establishments engaged in manufacturing in the standard industrial

classification manual prepared by the technical committee on industrial classification, office of

statistical standards, executive office of the president, United States bureau of the budget, as

revised from time to time, but eliminating as manufacturers those persons, who, because of their

limited type of manufacturing activities, are classified in the manual as falling within the trade

rather than an industrial classification of manufacturers. Among those thus eliminated, and

accordingly also excluded as manufacturers within the meaning of this paragraph, are persons

primarily engaged in selling, to the general public, products produced on the premises from which

they are sold, such as neighborhood bakeries, candy stores, ice cream parlors, shade shops, and

custom tailors, except, that a person who manufactures bakery products for sale primarily for

home delivery, or through one or more non-baking retail outlets, and whether or not retail outlets

are operated by person, is a manufacturer within the meaning of this paragraph.

     (v) The term "Person" means and includes, as appropriate, a person, partnership, or

corporation.

     (vi) The department of administration revenue shall provide to the local assessors any

assistance that is necessary in determining the proper application of the definitions in this

subdivision.

     (21) Real and tangible personal property acquired to provide a treatment facility used

primarily to control the pollution or contamination of the waters or the air of the state, as defined

in chapter 12 of title 46 and chapter 25 of title 23, respectively, the facility having been

constructed, reconstructed, erected, installed, or acquired in furtherance of federal or state

requirements or standards for the control of water or air pollution or contamination, and certified

as approved in an order entered by the director of environmental management. The property is

exempt as long as it is operated properly in compliance with the order of approval of the director

of environmental management; provided, that any grant of the exemption by the director of

environmental management in excess of ten (10) years is approved by the city or town in which

the property is situated. This provision applies only to water and air pollution control properties

and facilities installed for the treatment of waste waters and air contaminants resulting from

industrial processing; furthermore, it applies only to water or air pollution control properties and

facilities placed in operation for the first time after April 13, 1970;

     (22) New manufacturing machinery and equipment acquired or used by a manufacturer

and purchased after December 31, 1974. Manufacturing machinery and equipment is defined as:

     (i) Machinery and equipment used exclusively in the actual manufacture or conversion of

raw materials or goods in the process of manufacture by a manufacturer as defined in subdivision

(20) of this section, and machinery, fixtures, and equipment used exclusively by a manufacturer

for research and development or for quality assurance of its manufactured products;

     (ii) Machinery and equipment which is partially used in the actual manufacture or

conversion of raw materials or goods in process of manufacture by a manufacturer as defined in

subdivision (20) of this section, and machinery, fixtures, and equipment used by a manufacturer

for research and development or for quality assurance of its manufactured products, to the extent

to which the machinery and equipment is used for the manufacturing processes, research and

development or quality assurance. In the instances where machinery and equipment is used in

both manufacturing and/or research, and development, and/or quality assurance activities and

non-manufacturing activities, the assessment on machinery and equipment is prorated by

applying the percentage of usage of the equipment for the manufacturing, research, and

development and quality assurance activity to the value of the machinery and equipment for

purposes of taxation, and the portion of the value used for manufacturing, research, and

development, and quality assurance is exempt from taxation. The burden of demonstrating this

percentage usage of machinery and equipment for manufacturing and for research, and

development and/or quality assurance of its manufactured products rests with the manufacturer;

and

     (iii) Machinery and equipment described in § 44-18-30(7) and (22) that was purchased

after July 1, 1997; provided that the city or town council of the city or town in which the

machinery and equipment is located adopts an ordinance exempting the machinery and equipment

from taxation. For purposes of this subsection, city councils and town councils of any

municipality may by ordinance wholly or partially exempt from taxation the machinery and

equipment discussed in this subsection for the period of time established in the ordinance and

may by ordinance establish the procedures for taxpayers to avail themselves of the benefit of any

exemption permitted under this section; provided, that the ordinance does not apply to any

machinery or equipment of a business, subsidiary or any affiliated business which locates or

relocates from a city or town in this state to another city or town in the state.

     (23) Precious metal bullion, meaning any elementary metal which has been put through a

process of melting or refining, and which is in a state or condition that its value depends upon its

content and not its form. The term does not include fabricated precious metal which has been

processed or manufactured for some one or more specific and customary industrial, professional,

or artistic uses;

     (24) Hydroelectric power generation equipment, which includes, but is not limited to,

turbines, generators, switchgear, controls, monitoring equipment, circuit breakers, transformers,

protective relaying, bus bars, cables, connections, trash racks, headgates, and conduits. The

hydroelectric power generation equipment must have been purchased after July 1, 1979, and

acquired or used by a person or corporation who owns or leases a dam and utilizes the equipment

to generate hydroelectric power;

     (25) Subject to authorization by formal action of the council of any city or town, any real

or personal property owned by, held in trust for, or leased to an organization incorporated under

chapter 6 of title 7, as amended, or an organization meeting the definition of "charitable trust" set

out in § 18-9-4, as amended, or an organization incorporated under the not for profits statutes of

another state or the District of Columbia, the purpose of which is the conserving of open space, as

that term is defined in chapter 36 of title 45, as amended, provided the property is used

exclusively for the purposes of the organization;

     (26) Tangible personal property, the primary function of which is the recycling, reuse, or

recovery of materials (other than precious metals, as defined in § 44-18-30(24)(ii) and (iii)), from

or the treatment of "hazardous wastes", as defined in § 23-19.1-4, where the "hazardous wastes"

are generated primarily by the same taxpayer and where the personal property is located at, in, or

adjacent to a generating facility of the taxpayer. The taxpayer may, but need not, procure an order

from the director of the department of environmental management certifying that the tangible

personal property has this function, which order effects a conclusive presumption that the tangible

personal property qualifies for the exemption under this subdivision. If any information relating

to secret processes or methods of manufacture, production, or treatment is disclosed to the

department of environmental management only to procure an order, and is a "trade secret" as

defined in § 28-21-10(b), it shall not be open to public inspection or publicly disclosed unless

disclosure is otherwise required under chapter 21 of title 28 or chapter 24.4 of title 23;

     (27) Motorboats as defined in § 46-22-2 for which the annual fee required in § 46-22-4

has been paid;

     (28) Real and personal property of the Providence performing arts center, a non-business

corporation as of December 31, 1986;

     (29) Tangible personal property owned by, and used exclusively for the purposes of, any

religious organization located in the city of Cranston;

     (30) Real and personal property of the Travelers Aid Society of Rhode Island, a nonprofit

corporation, the Union Mall Real Estate Corporation, and any limited partnership or limited

liability company which is formed in connection with, or to facilitate the acquisition of, the

Providence YMCA Building; and

     (31) Real and personal property of Meeting Street Center or MSC Realty, Inc., both not-

for-profit Rhode Island corporations, and any other corporation, limited partnership, or limited

liability company which is formed in connection with, or to facilitate the acquisition of, the

properties designated as the Meeting Street National Center of Excellence on Eddy Street in

Providence, Rhode Island.

44-3-29.1. Wholesale and retail inventory tax phase out. -- (a) Beginning July 1, 1999,

the city council or town council of any municipality shall, by ordinance, phase out, over a ten (10)

year period, the stock in trade or inventory tax of wholesalers and retailers. The rate schedule to

be implemented by the cities and towns is established in this section.

(b) "Inventory", as it refers to wholesalers, "stock in trade", as it refers to wholesalers,

and "wholesaler" have the same meaning as defined in section 44-3-19.

     (c) "Inventory", as it refers to retailers, "stock in trade", as it refers to retailers, and

"retailer: have the same meaning as defined in section 44-3-40.

     (d) The rate schedule for the ten (10) year phase out of the wholesale and retail inventory

tax is as follows:

    Year                      Maximum Tax Rate

    FY 1999                set by local officials

    FY 2000                 ninety percent (90%) of FY 1999 rate

    FY 2001                 eighty percent (80%) of FY 1999 rate

    FY 2002                 seventy percent (70%) of FY 1999 rate

    FY 2003                 sixty percent (60%) of FY 1999 rate

    FY 2004                 fifty percent (50%) of FY 1999 rate

    FY 2005                 forty percent (40%) of FY 1999 rate

    FY 2006                 thirty percent (30%) of FY 1999 rate

    FY 2007                 twenty percent (20%) of FY 1999 rate

    FY 2008                 ten percent (10%) of FY 1999 rate

    FY 2009                 no tax authorized

(e) In the event that a wholesaler sold inventory or stock in trade both at wholesale and at

retail in the preceding calendar year, the tax assessor of the municipality shall assess on the same

basis as a retailer's inventory or stock in trade as of December 31 of that year, to the extent

permitted by applicable law, notwithstanding any freeze of assessed valuation or exemption

permitted pursuant to § 44-5-12(c), that proportion of inventory or stock in trade of the

wholesaler which are equal to the percentage of the wholesaler's total sales during the preceding

calendar year that were at retail. For the purposes of this paragraph, "sales at retail" do include

sales to employees of the wholesaler or to employees of its affiliates. If retail sales are less than

one percent (1%) of total sales during the year, it is deemed that no sales were made at retail

during the year. All sales of a wholesaler to a customer, which is an affiliated entity, are deemed

to be retail sales for the purposes of this subsection if more than half of the dollar volume of the

sales of the affiliated entity is made within the municipality.

     (f) For purposes of this section, a wholesaler is considered affiliated with customers if it

controls, or is under common control with the customers.

     (g) In the event that a wholesaler or retailer subject to the inventory tax commences

operations in a particular city or town after fiscal year 1999, the tax assessor for that municipality

shall determine what would have been the value of the inventory as of December 1998, adjusting

the inventory value to fiscal year 1999 using the changes in the consumer price index -- all urban

consumers (CPI-U) published by the Bureau of Labor Statistics of the United States Department

of Labor. The director of the department of administration revenue shall annually publish an

adjustment schedule.

     SECTION 37. Sections 44-5-2, 44-5-11.1, 44-5-11.3, 44-5-11.4, 44-5-11.6, 44-5-13.1,

44-5-20.02, 44-5-20.5, 44-5-26, 44-5-38, 44-5-43, 44-5-44, 44-5-48, 44-5-49, 44-5-50 and 44-5-

69 of the General Laws in Chapter 44-5 entitled “Levy and Assessment of Local Taxes” are

hereby amended to read as follows:  

44-5-2. Maximum levy. (a) Through and including its fiscal year 2007, a city or town may

levy a tax in an amount not more than five and one-half percent (5.5%) in excess of the amount

levied and certified by that city or town for the prior year. Through and including its fiscal

year 2007, but in no fiscal year thereafter, the amount levied by a city or town is deemed to be

consistent with the five and one-half percent (5.5%) levy growth cap if the tax rate is not

more than one hundred and five and one-half percent (105.5%) of the prior year's tax rate and

the budget resolution or ordinance, as applicable, specifies that the tax rate is not increasing

by more than five and one-half percent (5.5%) except as specified in subsection (c) of

this section. In all years when a revaluation or update is not being implemented, a tax rate is

deemed to be one hundred five and one-half percent (105.5%) or less of the prior year's tax

rate if the tax on a parcel of real property, the value of which is unchanged for purpose of

taxation, is no more than one hundred five and one-half percent (105.5%) of the prior

year's tax on the same parcel of real property. In any year through and including fiscal year

2007 when a revaluation or update is being implemented, the tax rate is deemed to be

one hundred five and one-half percent (105.5%) of the prior year's tax rate as certified

by the division of local government assistance property valuation and municipal finance

in the department of administration revenue.  

(b) In its fiscal year 2008, a city or town may levy a tax in an amount not more than five

and one-quarter percent (5.25%) in excess of the total amount levied and certified by that

city or town for its fiscal year 2007. In its fiscal year 2009, a city or town may levy a tax in

an amount not more than five percent (5%) in excess of the total amount levied and

certified by that city or town for its fiscal year 2008. In its fiscal year 2010, a city or town

may levy a tax in an amount not more than four and three-quarters percent (4.75%) in

excess of the total amount levied and certified by that city or town in its fiscal year 2009.

In its fiscal year 2011, a city or town may levy a tax in an amount not more than four and

one-half percent (4.5%) in excess of the total amount levied and certified by that city or

town in its fiscal year 2010. In its fiscal year 2012, a city or town may levy a tax in an

amount not more than four and one-quarter percent (4.25%) in excess of the total amount

levied and certified by that city or town in its fiscal year 2011. In its fiscal year 2013 and

in each fiscal year thereafter, a city or town may levy a tax in an amount not more than

four percent (4%) in excess of the total amount levied and certified by that city or town

for its previous fiscal year.  

(c) The division of property valuation in the department of revenue shall monitor city

and town compliance with this levy cap, issue periodic reports to the general

assembly on compliance, and make recommendations on the continuation or modification

of the levy cap on or before December 31, 1987, December 31, 1990, and December 31,

every third year thereafter. The chief elected official in each city and town shall provide

to the office of municipal affairs division of property and municipal finance within

thirty (30) days of final action, in the form required, the adopted tax levy and rate and

other pertinent information.  

(d) The amount levied by a city or town may exceed the percentage increase as

specified in subsection (a) or (b) of this section if the city or town qualifies under one or

more of the following provisions:  

(1) The city or town forecasts or experiences a loss in total non-property tax

revenues and the loss is certified by the department of administration revenue.  

(2) The city or town experiences or anticipates an emergency situation, which

causes or will cause the levy to exceed the percentage increase as specified in

subsection (a) or (b) of this section. In the event of an emergency or an anticipated

emergency, the city or town shall notify the auditor general who shall certify the

existence or anticipated existence of the emergency. Without limiting the generality

of the foregoing, an emergency shall be deemed to exist when the city or town

experiences or anticipates health insurance costs, retirement contributions or utility

expenditures which exceed the prior fiscal year's health insurance costs, retirement

contributions or utility expenditures by a percentage greater than three (3) times

the percentage increase as specified in subsection (a) or (b) of this section.  

(3) A city or town forecasts or experiences debt services expenditures

which exceed the prior year's debt service expenditures by an amount greater

than the percentage increase as specified in subsection (a) or (b) of this section

and which are the result of bonded debt issued in a manner consistent with

general law or a special act. In the event of the debt service increase, the

city or town shall notify the department of administration revenue which shall

certify the debt service increase above the percentage increase as specified in

subsection (a) or (b) of this section the prior year's debt service. No action approving

or disapproving exceeding a levy cap under the provisions of this section affects the

requirement to pay obligations as described in subsection (d) of this section.  

(4) The city or town experiences substantial growth in its tax base as the result of major

new construction which necessitates either significant infrastructure or school housing

expenditures by the city or town or a significant increase in the need for essential

municipal services and such increase in expenditures or demand for services is certified

by the department of administration revenue.  

(e) Any levy pursuant to subsection (d) of this section in excess of the percentage

increase specified in subsection (a) of this section shall be approved by the affirmative

vote of at least four-fifths (4/5) of the full membership of the governing body of the city

or town or in the case of a city or town having a financial town meeting, the majority of

the electors present and voting at the town financial meeting shall also approve the excess levy.  

(f) Nothing contained in this section constrains the payment of present or future obligations

as prescribed by § 45-12-1, and all taxable property in each city or town is subject to

taxation without limitation as to rate or amount to pay general obligation bonds or notes of

the city or town except as otherwise specifically provided by law or charter.  

44-5-11.1. Certification of businesses and employees engaged in revaluing property--

--(a) All persons, firms, associations, partnerships, and corporations engaged in the business of

revaluing property for any town or city pursuant to the provisions of § 44-5-11.6 shall be certified

by the department of administration revenue.

     (b) All employees of persons, firms, associations, partnerships, and corporations referred

to in subsection (a) of this section shall, prior to revaluing property for any town or city pursuant

to the provisions of § 44-5-11.6, be certified by the department of administration revenue as

qualified to perform the services.

     (c) Each person, firm, association, partnership, or corporation referred to in subsection (a)

of this section shall, prior to revaluing property for any town or city pursuant to the provisions of

§ 44-5-11.6, disclose to the town or city council of that municipality, all standards to be used in

conducting the revaluation and secure approval of the town or city council.

     (d)(1) The director of administration revenue shall promulgate rules and regulations as

are necessary to carry out the purposes of this section.

     (2) The rules and regulations shall include, but shall not be limited to, the following

requirements:

     (i) The person, firm, association, partnership, or corporation:

     (A) Must demonstrate experience in the field of assessing, revaluation, and ad valorem

appraising;

     (B) Must list all officers engaged in the revaluation process in Rhode Island;

     (C) Must list all project managers, field supervisors, reviewers, appraisers, and other

personnel engaged in the revaluation process in Rhode Island;

     (D) Must provide a list of the five (5) most recent revaluation projects performed within

the preceding ten (10) years, including the municipality and state in which the work was

performed as well as the project supervisor for each project;

     (E) Must post a performance surety bond:

     (F) Demonstrate financial solvency of the company

     (G) List all pending litigation, if any, to which the company is a party.

     (ii) The rules and regulations shall require ad valorem appraisers to have either proper

designations from recognized professional organizations or written examinations by the licensing

agency.

44-5-11.3. Annual training institute for tax assessors --- (a) The director of the

department of administration revenue in cooperation with the Rhode Island association of

assessing officers shall establish and conduct an annual training institute for local tax assessors.

The training institute shall consist of certified training courses in such areas as the cost approach,

market data approach, and income approach to property valuation; the use of computer

technology for property tax assessments and maintenance, the application of Rhode Island law to

property tax administration, and containing education. For this purpose, the department may

cooperate with educational institutions, local, regional, state, or national assessors' organizations,

and with any other appropriate professional organizations. A local tax assessor who has

successfully completed the training program, or who has obtained the necessary amount of

credits, shall be awarded the designation of Rhode Island Certified Assessor (R.I.C.A.).

      (b) An applicant, who is a member of a local assessment personnel staff, who has

successfully completed the training program, or who has obtained the necessary courses, shall be

awarded the designation of Rhode Island Certified Assessment Personnel (RICAP).

     (c) The Rhode Island Association of Assessing Officers shall establish a program of re-

certification, approved by the department of administration revenue, for all designated members.

44-5-11.4. Technology grants for property tax administration---The director of the

department of administration revenue may establish a local grant-in-aid program whereby

cities and towns may purchase microcomputers to be used for the purpose of property tax

administration. The director shall also cause to be prepared and distributed to all cities and towns

that participate in the grant-in-aid program, a uniform "software" application program which

would adapt current state-of- the-art uses in property tax administration.

44-5-11.6. Assessment of valuations -- Apportionment of levies. --

(a) Notwithstanding the provisions of § 44-5-11 [repealed], beginning on December 31, 2000, the

assessors in the several towns and cities shall conduct an update as defined in this section or shall

assess all valuations and apportion the levy of all taxes legally ordered under the rules and

regulations, not repugnant to law, as the town meetings and city councils, respectively, shall from

time to time prescribe; provided, that the update or valuation is performed in accordance with the

following schedules:

     (1) (i) For a transition period, for cities and towns who conducted or implemented a

revaluation as of 1993 or in years later.

Update                Revaluation             

Lincoln                       2000 2003               

South Kingstown        2000   2003               

Smithfield                  2000                2003               

West Warwick            2000                 2003               

Johnston                      2000                 2003               

Burrillville                  2000                 2003               

North Smithfield          2000                 2003               

Central Falls              2000                2003               

North Kingstown        2000                 2003               

Jamestown                 2000                 2003               

North Providence        2001                 2004               

Cumberland                2001             2004               

Bristol                        2004                 2001               

Charlestown                2001                2004               

East Greenwich       2002                 2005               

Cranston               2002                2005               

Barrington           2002             2005               

Warwick                   2003                2006               

Warren                2003                 2006               

East Providence    2003                2006               

(ii) Provided that the reevaluation period for the town of New Shoreham shall be

extended to 2003 and the update for the town of Hopkinton may be extended to 2007 with no

additional reimbursements by the state relating to the delay.

     (iii) The implementation date for this schedule is December 31st, of the stated year.

     (iv) Those cities and towns not listed in this schedule, shall continue the revaluation

schedule pursuant to § 44-5-11 [repealed].

     (2) (i) For the post transition period and in years thereafter: 

Update #1            Update #2       Revaluation   

Woonsocket         2002                 2005             2008     

Pawtucket                   2002                2005                 2008     

Portsmouth            2001            2004 2007     

Coventry                 2001                 2004                2007     

Providence          2003                2006                2009     

Foster                   2002               2005                 2008     

Middletown         2002                 2005                 2008     

Little Compton     2003                  2006                 2009     

Scituate             2003          2006                 2009     

Westerly               2003          2006                 2009     

West Greenwich     2004                2007                 2010     

Glocester              2004                  2007                 2010     

Richmond          2004                2007                 2010     

Bristol                 2004                  2007                 2010     

Tiverton              2005                2008                 2011     

Newport                2005          2008                 2011     

New Shoreham     2006                  2009                 2012     

Narragansett         2005              2008                 2011     

Exeter              2005               2008                 2011     

Hopkinton             2007              2010                 2013     

Lincoln                 2006                 2009                 2012     

South Kingstown    2006                  2009                 2012     

Smithfield            2006       2009                 2012     

West Warwick     2006             2009                 2012     

Johnston               2006                2009                 2012     

Burrillville            2006                2009                 2012     

North Smithfield     2006                  2009                 2012     

Central Falls            2006                  2009                 2012     

North Kingstown    2006                  2009                 2012     

Jamestown              2006                  2009                 2012     

North Providence     2007                  2010                2013     

Cumberland             2007                  2010                 2013     

Charlestown           2007                 2010                 2013     

East Greenwich     2008                  2011                 2014     

Cranston                2008      2011                 2014     

Barrington                2008           2011                 2014     

Warwick                  2009               2012                 2015     

Warren                   2009               2012                 2015     

East Providence          2009                  2012                 2015     

(ii) The implementation date for the schedule is December 31st of the stated year. Upon

the completion of the update and revaluation according to this schedule, each city and town shall

conduct a revaluation within nine (9) years of the date of the prior revaluation and shall conduct

an update of real property every three (3) years from the last revaluation.

(b) No later than February 1, 1998, the director of the department of administration

revenue shall promulgate rules and regulations consistent with the provisions of this section to

define the requirements for the updates which shall include, but not be limited to:

      (1) An analysis of sales;

      (2) A rebuilding of land value tables;

      (3) A rebuilding of cost tables of all improvement items; and

      (4) A rebuilding of depreciation schedules.

     Upon completion of an update, each city or town shall provide for a hearing and/or

appeal process for any aggrieved person to address any issue, which arose during the update.

44-5-13.1. Duties of assessors with respect to forms ---The assessors shall utilize all

forms adopted in accordance with forms prepared by the department of administration revenue

for the preparation and administration of their assessments. Nothing contained in this chapter

invalidates a tax assessed and levied in accordance with law.

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

(a) On or before June 1, except in 1990, in which case the time is thirty (30) days after June 1,

1990, the assessor in the city of Central Falls, after certification for classification, shall submit to

the director of administration revenue a list containing the true, full, and fair cash value of the

ratable estate and motor vehicles and shall classify the property according to the following use:

   (1) "Class 1" includes:

   (i) Residential property which is property used or held for human habitation containing one or

more dwelling units including rooming houses and mobile homes with facilities designed and used

for living, sleeping, cooking, and eating on a non-transient basis. This property includes accessory

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

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

industrial property.

   (ii) Open space including "farm", "forest", and "open space land" as defined in accordance with

§ 44-27-2.

   (2) "Class 2" includes:

   (i) Personal property, previously subject to tax, includes all goods, chattels, and effects,

wherever they may be, except those that are exempt from taxation by the laws of the United

States or of this state; and

   (ii) Every vehicle and trailer registered under chapter 3 of title 31.

   (3) "Class 3" includes property used commercially or for industrial manufacturing.

   (b) The city of Central Falls may, by resolution or ordinance adopted by the city council,

provide for tax classification of property in the city of Central Falls to become effective in

any year in which the assessment roll reflects a general revaluation of all taxable property

in the city of Central Falls.

44-5-20.5. Pawtucket -- Property tax classification -- Procedures for adopting---

(a) When the city of Pawtucket has been certified by the director of administration revenue for

property tax classification in accordance with § 44-5-20.1, the city of Pawtucket shall annually

first determine the percentages of the local tax levy to be borne by each class of ratable property

as defined in § 44-5-20.2 for the next fiscal year. In determining the percentages, the assessor

together with the mayor's approval shall after determining revenues to be realized from Class 2

properties then determine the residential factor. The factor shall be an amount not less than the

minimum residential factor determined by the director of administration revenue in accordance

with § 44-5-20.3 and shall be used by the assessor to determine the percentages of the local tax

levy to be borne by each class. After the first year, the rate of taxation of Class 2 properties shall

not exceed the rate of taxation of the previous year, until the rate of taxation of Class 1 properties

is equal to the rate of Class 2 properties.

44-5-26. Petition in superior court for relief from assessment---(a) Any person

aggrieved on any ground whatsoever by any assessment of taxes against him or her in any city or

town, or any tenant or group of tenants, of real estate paying rent therefrom, and under obligation

to pay more than one-half of the taxes thereon, may within ninety (90) days from the date the first

tax payment is due, file an appeal in the local office of tax assessment; provided, if the person to

whom a tax on real estate is assessed chooses to file an appeal, the appeal filed by a tenant or

group of tenants will be void. For the purposes of this section, the tenant(s) has the burden of

proving financial responsibility to pay more than one-half (1/2) of the taxes. The assessor has

forty-five (45) days to review the appeal, render a decision and notify the taxpayer of the

decision. The taxpayer, if still aggrieved, may appeal the decision of the tax assessor to the local

tax board of review, or in the event that the assessor does not render a decision, the taxpayer may

appeal to the local tax board of review at the expiration of the forty-five (45) day period. Appeals

to the local tax board of review are to be filed not more than thirty (30) days after the assessor

renders a decision and notifies the taxpayer, or if the assessor does not render a decision within

forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the expiration

of the forty-five (45) day period. The local tax board of review shall, within ninety (90) days of

the filing of the appeal, hear the appeal and render a decision within thirty (30) days of the date

that the hearing was held. Provided, that a city or town may request and receive an extension

from the director of the Rhode Island department of administration revenue.

    (b) Appeals to the local office of tax assessment are to be on an application. In the event of

an appeal to the local tax board of review, the local office of tax assessment, upon request

by the taxpayer, shall forward the application to the local tax board of review. The application

shall be in the following form:

STATE OF RHODE ISLAND

    FISCAL YEAR ________ ________________________
Name of City or Town

APPLICATION FOR APPEAL OF PROPERTY TAX

    For appeals to the tax assessor, this form must be filed with the local office of tax assessment within ninety (90) days

from the date the first tax payment is due. For appeals to the local tax board of review, this form must be filed with the

local tax board of review not more than thirty (30) days after the assessor renders a decision, or if the assessor does not

render a decision within forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the expiration

of the forty-five (45) day period.  
    1. TAXPAYER INFORMATION:
    A. Name(s) of Assessed Owner:__________________________________________________
    B. Name(s) and Status of Applicant (if other than Assessed Owner):_____________
          ________ Subsequent Owner (Acquired Title After December 31 on _____________ 20________ )
          ________ Administrator/Executor ________ Lessee ________ Mortgagee ________ Other Specify ________
    C. Mailing Address and Telephone No.:______________ (    ) ____________________
    Address Tel. No.
    D. Previous Assessed Value
____________________________________________________ E. New Assessed Value ___
    2. PROPERTY IDENTIFICATION: Complete using information as it appears on tax bill.
    A. Tax Bill Account No.:
______________________________________________________ Assessed Valuation __________________________________________________________________ Annual Tax
______________________________________________________________________________
    B. Location:___________________________________________________________________
Description:__________________________________________________________________
    No. Street Zip
          Real Estate Parcel Identification: Map ____ Block ____ Parcel ____ Type__
          Tangible Personal
    C. Date Property Acquired: Purchase Price: Total cost of any improvements______
            What is the amount of fire insurance on building:
    3. REASON(S) REDUCTION SOUGHT: Check reason(s) reduction is warranted and briefly explain why it applies.

Continue explanation on attachment if necessary.
          Overvaluation. Incorrect Usage Classification.
          Disproportionate Assessment. Other Specify:
          Applicant's Opinion of Value $ Fair Market Value Class Assessed Value
 (as of December
31 in the year of
the last update or
revaluation for
real estate and
as of December 31
of the tax year
for personal estate;)
          Explanation______________________________________________________________
    _______________________________________________________________________________
    _______________________________________________________________________________
Have you filed a true and exact account this year with the City Assessor as required by law?
Comparable Properties that support your claim:
    Address Sale Price Sales Date Property Type    Assessed value
    _______________________________________________________________________________
    _______________________________________________________________________________
    _______________________________________________________________________________
    _______________________________________________________________________________
    4. SIGNATURES;
          SIGNATURE OF APPLICANT     DATE
          SIGNATURE OF AUTHORIZED AGENT     DATE
    _____________________________________________(____)_____________________________
_____________________________________________________________________
          Name of Preparer Address Tel. No.  

TAXPAYER INFORMATION ABOUT APPEAL PROCEDURE

    REASONS FOR AN APPEAL. It is the intent of the general assembly to ensure that all taxpayers in

Rhode Island are treated equitably. Ensuring that taxpayers are treated fairly begins where cities and towns

meet defined standards related to performing property values. All properties should be assessed in a uniform manner,

and properties of equal value should be assessed the same.  
TO DISPUTE YOUR VALUATION OR ASSESSMENT OR CORRECT ANY OTHER BILLING PROBLEM

OR ERROR THAT CAUSED YOUR TAX BILL TO BE HIGHER THAN IT SHOULD BE, YOU MUST

APPEAL WITHIN NINETY (90) DAYS FROM THE DATE THE FIRST TAX PAYMENT IS DUE.
You may appeal your assessment if your property is: (1) OVERVALUED (assessed value is more than the fair market

value as of December 31 in the year of the last update or revaluation for real estate and as of December 31 of the tax

year for personal estate for any reason, including clerical and data processing errors; (2) disproportionately assessed in

comparison with other properties; (3) classified incorrectly as residential, commercial, industrial or open space, farm

or forest; (4) illegal tax partially or fully exempt; (5) modified from its condition from the time of the last update or

revaluation. WHO MAY FILE AN APPLICATION: You may file an application if you are (1) the assessed or

subsequent (acquiring title after December 31) owner of the property; (2) the owner's administrator or executor; (3)

a tenant or group of tenants of real estate paying rent therefrom, and under obligations to pay more than one-half

(1/2) of the taxes thereon; (4) a person owning or having an interest in or possession of the property; or (5) a

mortgagee if the assessed owner has not applied. In some cases, you must pay all or a portion of the tax before you

can file. WHEN AND WHERE APPLICATION MUST BE FILED. Your application must be filed with the local office

of tax assessment within NINETY (90) days from the date the first tax payment is due. THESE DEADLINES

CANNOT BE EXTENDED OR WAIVED BY THE ASSESSOR FOR ANY REASON. IF YOUR APPLICATION

IS NOT FILED ON TIME, YOU LOSE ALL RIGHTS TO AN ABATEMENT AND THE ASSESSOR CANNOT

BY LAW GRANT YOU ONE. AN APPLICATION IS FILED WHEN RECEIVED BY THE ASSESSOR'S OFFICE.
PAYMENT OF TAX. Filing an application does not stay the collection of your taxes. In some cases, you must pay

the tax when due to appeal the assessors disposition of your application. Failure to pay the tax assessed when due

may also subject you to interest charges and collection action. To avoid any loss of rights or additional charges,

you should pay the tax as assessed. If an abatement is granted and you have already paid the entire year's tax as

abated, you will receive a refund of any overpayment.
FILING AN ACCOUNT. Rhode Island General Laws Section 44-5-15 requires the annual filing of a true and exact

account of all ratable estate owned or possessed by every person and corporate body. The time to file is between

December 31, and January 31, of intention to submit declaration by March 15. Failure to file a true and full account,

within the prescribed time, eliminates the right to appeal to the superior court, subject to the exceptions provided in

Rhode Island General Laws Section 44-5-26(b). No amended returns will be accepted after March 15th. Such notice

of your intention must be sent by certified mail, postage prepaid, postmark no later than 12 o'clock midnight of the

last day, January 31. No extensions beyond March 15th can be granted. The form for filing such account may be

obtained from the city or town assessor.
ASSESSOR'S DISPOSITION. Upon applying for a reduction in assessment, you may be asked to provide the assessor

with further written information about the property and to permit them to inspect it. Failure to provide the

information or permit an inspection within thirty (30) days of the request may result in the loss of your appeal rights.
APPEAL. The assessor shall have forty-five (45) days to review the appeal, render a decision and notify the taxpayer

of the decision. The taxpayer, if still aggrieved, may appeal the decision of the tax assessor to the local tax board of

review, or in the event that the assessor does not render a decision, the taxpayer may appeal to the local tax board of

review at the expiration of the forty-five (45) day period. Appeals to the local tax board of review shall be filed not

more than thirty (30) days after the assessor renders a decision and notifies the taxpayer, or if the assessor does not

render a decision within forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the

expiration of the forty-five (45) day period.
_______________________________________________________________________________

DISPOSITION OF APPLICATION (ASSESSOR'S USE ONLY)

    GRANTED Assessed Value_________________________________________________________
Date Sent____________ Abated Value_____________________________________________
Date Returned__________ DENIED Adjusted Value__________________________________
    Assessed Tax___________________________________________________________________
On-Site Inspection DEEMED DENIED Abated Tax____________________________________
Date Adjusted Tax______________________________________________________________
By__________________
    Date Voted/Deemed Denied Tax Board of Review
Date Change Certificate No.

    Any person still aggrieved on any ground whatsoever by an assessment of taxes against him or her in

any city or town may, within thirty (30) days of the tax board of review decision notice, file a petition

in the superior court for the county in which the city or town lies for relief from the assessment, to

which petition the assessors of taxes of the city or town in office at the time the petition is filed

shall be made parties respondent, and the clerk shall thereupon issue a citation substantially in the

following form:     

THE STATE OF

RHODE ISLAND AND PROVIDENCE PLANTATIONS.

    To the sheriffs of several counties, or to their deputies, Greetings: We command you to summon the assessors

of taxes of the town of ______________ : to wit, ______________ of ______________ (if to be found in

your precinct) to answer the complaint of ______________ of ______________ on the return day hereof

(said return day being the ________ day of ______________ A.D. 20________) in the superior court to be

holden at the county courthouse in ______________ as by petition filed in court is fully set forth; and to show

cause why said petition should not be granted. Hereof fail not, and make true return of this writ with your doings

thereon. Witness, the seal of our superior court, at ______________ this ________ day of ______________

in the year ______________ __________________, Clerk.

(c)  Provided, that in case the person has not filed an account, or filed an appeal first

within the local tax board of review, that person shall not have the benefit of the remedy

provided in this section and in  44-5-27 - 44-5-31, unless: (1) that person's real

estate has been assessed at a value in excess of the value at which it was assessed

on the last preceding assessment day, whether then owned by that person or not,

and has been assessed, if assessment has been made at full and fair cash value, at

a value in excess of its full and fair cash value, or, if assessment has purportedly

been made at a uniform percentage of full and fair cash value, at a percentage

in excess of the uniform percentage; or (2) the tax assessed is illegal in whole or in

part; and that person's remedy is limited to a review of the assessment on the

real estate or to relief with respect to the illegal tax, as the case may be.  

44-5-38. Rate of levy against tangible personal property consisting of manufacturing

machinery and equipment acquired or used by a manufacturer---Tangible personal property

consisting of manufacturing machinery and equipment acquired, owned, or used by a

manufacturer is subject to taxation at a uniform rate of assessment not to exceed fifty percent

(50%) of the full and fair cash value of the property. The levy and assessment of the tax upon the

manufacturer's manufacturing machinery and equipment is subject to, and limited to, the

following:

      (1) (i) Assessment and levy on manufacturer's machinery and equipment. In assessing

the valuation of the property and apportioning the levy of the tax on December 31, 1968, the

assessors in the several cities and towns shall not exceed seventy-five percent (75%) of the total

adjusted levy on the machinery, equipment, and inventories of all manufacturers of the city or

town as established by the division of local and metropolitan government using the levy based on

the assessment of the city or town as of December 31, 1966. In apportioning the levy as

established in this subdivision, the assessor may add to the total adjusted levy, the increase in levy

on manufacturer's machinery, equipment, and inventory occasioned by manufacturers found to be

operating but not taxed in the city or town as of December 31, 1966, or who have located in the

city or town since that date.

     (ii) In apportioning the levy of the tax on manufacturers' machinery and equipment within

a city or town for fiscal years ending after December 31, 1969, the assessors of any city or town

shall apportion the levy of the tax in an amount not to exceed one hundred three and one-half

percent (103.5%) of the total adjusted levy on manufacturer's machinery and equipment for the

next prior fiscal year. In apportioning the levy of the tax, as provided in this subdivision, the

assessors of any city or town may add to the total adjusted levy for the next prior fiscal year, the

increase in levy on manufacturer's machinery and equipment occasioned by manufacturers who

have located or who have increased investment within the meaning of subdivision (3) in the city

or town since the date of the next prior assessment.

     (2) (i) Assessment and levy on individual manufacturers. In assessing the valuation of the

property and apportioning the levy of the tax on December 31, 1968, the assessors of the several

cities and towns shall not exceed seventy-three and one-half percent (73.5%) of the adjusted levy

of the tax on the machinery, equipment, and inventory of any manufacturer of the city or town for

the next prior year. If the application of the preceding provision results in the total tax levy thus

obtained on manufacturers' machinery and equipment of a city or town for the year for which the

date of assessment of valuations was December 31, 1968, as the assessment of valuations is

established under the provisions of the first paragraph of this section, being less in amount than

the amount of the total adjusted levy as computed in accordance with the seventy-five percent

(75%) limitation prescribed under the provisions of paragraph (1)(i) of this section, the assessor

of the city or town, for the purpose of bringing the total levy on the machinery and equipment to

an amount not exceeding the amount of the total adjusted levy as computed by the seventy-five

percent (75%) limitation, may apply the amount of the total adjusted tax levy, as was thus limited

and computed under the provisions of paragraph (1)(i) of this section, to the total assessed

valuation as of December 31, 1968, as the valuation is established under the provisions of the first

paragraph of this section, on the machinery and equipment of all manufacturers of the city or

town, and apply the resulting classified tax rate to the assessed valuations as of December 31,

1968, on the machinery and equipment of each manufacturer of the city or town.

     (ii) In assessing the valuation of the property and apportioning the levy of the tax for

fiscal years ending after December 31, 1969, the assessors of the several cities and towns shall

not exceed one hundred five percent (105%) of the adjusted levy of the tax on the machinery and

equipment of any manufacturer for the next prior fiscal year.

     (3) As to the property constituting an increase in investment, the limitations fixed in

subdivisions (1) and (2) of this section do not apply to that portion of the tax levy on a

manufacturer derived from a substantial increase in investment in additional machinery and

equipment or that portion of the tax levy applicable to the property not previously taxed in the

city or town. For the purposes of this section, "substantial" means an investment in any one year

equal to at least fifteen percent (15%) of the sum of net book value plus accumulated reserves for

depreciation of other machinery and equipment of the manufacturer within the city or town.

     (4) When a city or town has completed a revaluation of all ratable property by

independent professional appraisers since December 31, 1966, the assessor of the city or town

shall, in applying the preceding limitations, employ the levy and assessment made for the fiscal

year immediately following the completion of the revaluation in lieu of the base established as

previously established by the division of local and metropolitan government; provided, that a base

year later than a fiscal year commencing in 1969 is not employed.

(5) Nothing in this section affects any agreement for the stabilization or exemption of

local taxes entered into under the provisions of § 44-3-9; provided, that any agreement may be

modified to take into account the effect of § 44-11-2 by the city or town council and the

manufacturer without the necessity of meeting the criteria and complying with the procedures

established in § 44-3-9. Upon the expiration of any existing agreement, the tax on the property

consisting of manufacturers' machinery, equipment, and inventory formerly stabilized or

exempted under the agreement shall be based upon a new assessment complying with all the

terms of this section.

     (6) Each city or town has the option of using its general property tax rate in computing its

levy on machinery and equipment of manufacturers or any separate rate, which it deems

appropriate subject to the restrictions established in this section.

     (7)(i) In order to assess accurately the impact of the provisions of this section upon the

several cities and towns and to provide necessary information for that purpose, each manufacturer

subject to taxation in any city or town shall submit to the division of local and metropolitan

government on or before October 1, 1966, a declaration report on the value of machinery and

equipment for each city or town in which the manufacturer is located; the declaration reports shall

be submitted on a form designed and furnished by the division and shall provide for inclusion of

the net book value and the accumulated reserve for depreciation of machinery and equipment

subject to local taxation, all as reported in the manufacturers' most recent Rhode Island corporate

tax return. The declaration report shall cover the most recent fiscal year of the taxpayer for which

the due date for the filing of a corporate tax return with the tax administrator is prior to the date

prescribed in this section for filing the report; provided, that where a manufacturer files a

corporate tax return with the tax administrator on or prior to the date of October 1 for the fiscal

year, the manufacturer shall file the declaration report on or before October 1.

     (ii) On or before October 1, 1968, and annually thereafter, each manufacturer shall file

with the office of the assessor of the city or town in which the property is situated, a declaration

report, as described in paragraph (1)(i) of this section, on a form prescribed by the department of

administration revenue and furnished to the local assessors. All reports shall be treated

confidentially by the assessor and employed by him or her for assessment purposes only.

     (iii) Failure to submit a declaration report to either the department of administration

revenue or the tax assessor of any city or town as required in subdivision (1)(i) subjects the

manufacturer to a penalty not to exceed ten percent (10%) of the tax on machinery and equipment

payable at the time when the taxes are due and payable as an addition to the tax due in the next

succeeding year and the penalty shall be so identified and listed on the tax roll. Should a

manufacturing establishment fail to submit a declaration report for a second successive year, it is

subject to a penalty not to exceed twenty-five percent (25%) of its tax on machinery and

equipment, payable as prescribed; should a manufacturing establishment fail for a third

successive year to file the declaration report it is subject to a penalty not to exceed fifty percent

(50%) of the tax on its machinery and equipment, payable as prescribed; for subsequent

successive years, failure to file the declaration report subjects the manufacturing establishment to

a penalty not to exceed fifty percent (50%) of its tax on machinery and equipment, payable as

prescribed. As to any manufacturer failing to file a declaration report with the local assessor as

required in this section, the limitation of paragraph (2)(ii) of this section shall not take effect until

the assessment date next following the date upon which the manufacturer first files a report with

the assessor. In lieu of the declaration report, any manufacturer subject to taxation for the first

time in any city or town of this state shall submit the information that is necessary to establish its

initial tax base and, in subsequent years, shall file the declaration report.

     (8) In any case where the assessor of any city or town has reason to doubt the veracity of

the contents of any declaration report so filed, the report may be submitted to the department of

administration revenue, which shall compare the information contained in the report with

information on file with the division of taxation and advise the assessor as to the veracity of the

report.

     (9) A manufacturer who stores or keeps on hand raw materials, work in process, and his

or her finished products in a storage place (as distinguished from finished products which he or

she holds for retail sale in any retail establishment operated by him or her) in a city or town other

than that in which his or her manufacturing plant is located shall file on or before March 15,

1969, and annually thereafter on or before each succeeding March 15, an inventory report on a

form prescribed and furnished by the department of administration revenue through the assessor,

with the assessor of the city or town where the raw materials and finished products are stored.

The assessor of each city or town shall notify all manufacturers of the city or town of the

requirement for filing the reports by publication in a newspaper of general circulation in the city

or town during the month of January, 1969, and during the same month in each year thereafter.

The report shall contain a true account of the raw materials, work in process, and finished

products that were manufactured by him or her in this state as well as any other merchandise

owned or possessed by him or her in the city or town on December 31 next preceding the date

specified for the filing of the inventory report. The report must describe and specify the value of

the raw materials, work in process, and finished products that were manufactured as already

stated and also the value of all other merchandise stored in the city or town. Any manufacturer

who fails or refuses to file any inventory report at the time and in the manner prescribed in this

section is deemed to have waived the tax exemption provided for on the raw materials, work in

process, and finished products thus stored, whereupon, and notwithstanding the provisions of §

44-3-3(20), the property is subject to taxation like all other taxable property. The provisions of

this subdivision shall not be construed to repeal § 44-5-15 or to limit the application of its

provisions.

     (10) A manufacturer who operates storage facilities for the storage of his raw materials,

work in process, and finished products in a city or town other than that in which his or her

manufacturing plant is located shall set forth in the declaration report, as and in the manner

prescribed in subdivision (7) of this section to be filed with the assessor of the city or town where

the storage facilities are located, any machinery and equipment owned or possessed by him or her

which is situated in or upon the storage facilities for use in the operation of the storage facilities,

or held there for use in the operation of the manufacturing plant.

     (11) The restrictions contained in this chapter shall not apply to the portion of the tax, if

any, assessed by the city or town for the purpose of paying the indebtedness of the city or town

and the indebtedness of the state or any political subdivision of the state to the extent assessed

upon or apportioned to the city or town, and the interest thereon; and for appropriation to any

sinking fund of the city or town (which portion of the tax is paid in full).

     (12) Any person who hires a person from public supported programs for persons with

disabilities and rehabilitated, shall receive a five hundred dollar ($500) credit per person hired;

provided, that the number of the persons increases the number of full-time employees by three

percent (3%) of the total numbers of persons employed the previous year.

     (13) For purposes of this subdivision, in determining the total amount of the tax levy on

manufacturing machinery and equipment owned or used by a manufacturer on December 31,

1973, the assessors in the several cities and towns shall not exceed ninety percent (90%) of the

levy on the class of property made as of December 31, 1972; thereafter annually commencing in

1974 on December 31, the assessors shall reduce the levy on the class of property whether or not

acquired subsequent to December 31, 1972, except as provided in this section, as follows: to

eighty percent (80%) of the December 31, 1972, levy on December 31, 1974; to seventy percent

(70%) of the December 31, 1972, levy on December 31, 1975; to sixty percent (60%) of the

December 31, 1972, levy on December 31, 1976; to fifty percent (50%) of the December 31,

1972, levy on December 31, 1977; to forty percent (40%) of the December 31, 1972, levy on

December 31, 1978; to thirty percent (30%) of the December 31, 1972, levy on December 31,

1979; to twenty percent (20%) of the December 31, 1972, levy on December 31, 1980; to ten

percent (10%) of the December 31, 1972, levy on December 31, 1981 and to continue at ten

percent (10%) of the December 31, 1972, levy on December 31, 1982; and to five percent (5%) of

the December 31, 1972, levy on December 31, 1983; and thereafter the property is exempt from

taxation.

44-5-43. Definitions --- As used in this chapter, the following terms are defined as

follows:

     (1) "Assessment ratio study" means the process of comparing, on a sampling basis, the

current market values of properties to their assessed valuations, and of applying statistical

procedures to determine assessment levels and to measure the nonuniformity of assessments.

     (2) "Department" means the department of administration revenue.

     (3) "Russell index of inequality" is that percentage obtained from the relation between the

average absolute deviation of assessment ratios and the average ratio of assessment, and

formulated as follows:

     Average absolute deviation of assessment ratios divided by the average assessment ratio

= Russell index of inequality.

44-5-44. Collection and publication of property tax data---(a) The department of

administration revenue shall annually make and publicly issue comprehensive assessment ratio

studies of the average level of assessment and the degree of assessment uniformity within each

town and city. The department of administration revenue shall also annually compute and

publicly issue the Russell Index of Inequality within each town and city.

     (b) The department of administration revenue shall require assessors and other officers to

report to it data on assessed valuations and other features of the property tax for the periods and in

the form and content that the department of administration revenue requires. The department of

administration revenue shall construct and maintain its system for the collection and analysis of

property tax facts to enable it to make intrastate comparisons as well as interstate comparisons

based on property tax and assessment ratio data compiled for other states by the United States

Bureau of the Census or any agency successor to the Bureau.

44-5-48.  Municipal revaluation – Registration. – All persons, firms, partnerships,

corporations, or other business entities seeking to perform a municipal revaluation as is described

in § 44-5-11.6 shall first register with the department of administration revenue and shall conform

to the rules and regulations promulgated by the director of the department of administration

revenue in order to do business in this state.

44-5-49. Municipal revaluation – Rules and regulations – Investigation. – The

director of the department of administration revenue is authorized and empowered to promulgate

rules and regulations for revaluation firms as described in § 44-5-48, and the director is

authorized to investigate and inquire into the resources of applicants including, but not limited to,

contacting prior persons for whom service was performed in order to evaluate the applicant's

ability to perform the service of revaluation.

44-5-50.  Contract for revaluation – Certified copy. – Within ten (10) days after

execution of a contract for revaluation as described in § 44-5-11.6, the city or town clerk shall

submit a duly authorized and certified copy of the contract to the department of administration

revenue.

44-5-69.  Local fire districts – Publication of property tax data. – Every fire district

authorized to assess and collect taxes on real and personal property in the several cities and towns

in the state shall provide to the division of property valuation and municipal finance in the

department of revenue information on tax rates, budgets, assessed valuations and other pertinent

data upon forms provided by the office of municipal affairs division of property valuation and

municipal finance. The information shall be included in the department's annual state report on

local governmental finances and tax equalization.

     SECTION 38. Section 44-7-7.1 of the General Laws in Chapter 44-7 entitled “Collection

of Taxes Generally” is hereby amended to read as follows:

44-7-7.1. Taxpayer information --- (a) When a municipality issues a property tax bill to

each taxpayer, each bill shall state the amount by which the taxpayer's rate of tax has been

reduced by the distribution of state municipal revenue sharing and state aid for education. The bill

shall also state the total amount of state municipal revenue sharing and state aid for education

received by the municipality from the state. The statement shall read as follows:

     Fiscal Year 19__ State Aid to City/Town of___________________

     Total Amount______________

     Tax rate reduced by___________      

(b) The director of administration revenue shall annually provide each municipality with

the amount of state municipal revenue sharing and state aid for education subject to identification

under this section.

     SECTION 39. Sections 44-13-7, 44-13-8, and 44-13-13 of the General Laws in Chapter

44-13 entitled “Public Corporation Tax” are hereby amended to read as follows:

44-13-7. Extension of time for filing of returns ---The tax administrator may grant a

reasonable extension of time for filing returns, under rules and regulations as he or she shall

prescribe, with the approval of the director of administration revenue. Whenever an extension

of time is granted, a corporation shall be required to pay as part of any tax due interest at the

annual rate prescribed by § 44-1-7 from the day when the return should have been filed as if no

extension had been granted.

44-13-8. Statements, returns, and rules and regulations ---(a) Every corporation shall

render statements, make returns, and comply with rules and regulations as the tax administrator,

with the approval of the director of administration revenue, may from time to time prescribe.

(b) The tax administrator may, whenever in his or her judgment it is necessary, require

any corporation, by notice served upon it, to make a return or render statements as the tax

administrator deems necessary in determining the liability of any corporation to a tax under this

chapter.  

44-13-13. Taxation of certain tangible personal property.---The lines, cables,

conduits, ducts, pipes, machines and machinery, equipment, and other tangible personal property

within this state of telegraph, cable, and telecommunications corporations and express

corporations, used exclusively in the carrying on of the business of the corporation shall be

exempt from local taxation; provided, that nothing in this section shall be construed to exempt

any "community antenna television system company" (CATV) from local taxation; and provided,

that the tangible personal property of companies exempted from local taxation by the provisions

of this section shall be subject to taxation in the following manner:

     (1) Definitions. Whenever used in this section and in §§ 44-13-13.1 and 44-13-13.2,

unless the context otherwise requires:

      (i) "Average assessment ratio" means the total assessed valuation as certified on tax rolls

for the reference year divided by the full market value of the valuation as computed by the Rhode

Island department of administration revenue in accordance with § 16-7-21;

     (ii) "Average property tax rate" means the statewide total property levy divided by the

statewide total assessed valuation as certified on tax rolls for the most recent tax year;

     (iii) "Company" means any telegraph, cable, telecommunications, or express company

doing business within the state of Rhode Island;

     (iv) "Department" means the department of administration revenue;

     (v) "Population" shall mean the population as determined by the most recent census;

     (vi) "Reference year" means the calendar year two (2) years prior to the calendar year

preceding that in which the tax payment provided for by this section is levied;

     (vii) "Value of tangible personal property" of companies means the net book value of

tangible personal property of each company doing business in this state as computed by the

department of administration revenue. "Net book value" means the original cost less accumulated

depreciation; provided, that no tangible personal property shall be depreciated more than seventy-

five percent (75%) of its original cost.

     (2) On or before March 1 of each year, each company shall declare to the department, on

forms provided by the department, the value of its tangible personal property in the state of

Rhode Island on the preceding December 31.

     (3) On or before April 1, 1982 and each April 1 thereafter of each year, the division of

property valuation shall certify to the tax administrator the average property tax rate, the average

assessment ratio, and the value of tangible personal property of each company.

     (4) The tax administrator shall apply the average assessment ratio and the average tax rate

to the value of tangible personal property of each company and, by April 15 of each year, shall

notify the companies of the amount of tax due.

     (5) The tax shall be due and payable within sixty (60) days of the mailing of the notice by

the tax administrator. If the entire tax is not paid to the tax administrator when due, there shall be

added to the unpaid portion of the tax, and made a part of the tax, interest at the rate provided for

in § 44-1-7 from the date the tax was due until the date of the payment. The amount of any tax,

including interest, imposed by this section shall be a debt due from the company to the state, shall

be recoverable at law in the same manner as other debts, and shall, until collected, constitute a

lien upon all the company's property located in this state.

     (6) The proceeds from the tax shall be allocated in the following manner:

     (i) Payment of reasonable administrative expenses incurred by the department of

administration revenue, not to exceed three quarters of one percent (.75%), the payment to be

identified as general revenue and appropriated directly to the department;

     (ii) The remainder of the proceeds shall be deposited in a restricted revenue account and

shall be apportioned to the cities and towns within this state on the basis of the ratio of the city or

town population to the population of the state as a whole. Estimated revenues shall be distributed

to cities and towns by July 30 and may be recorded as a receivable by each city and town for the

prior fiscal year.

     SECTION 40. Section 44-13.1-2 of the General Laws in Chapter 44-13.1 entitled

“Taxation of Railroad Corporations” is hereby amended to read as follows:

44-13.1-2. Assessment of amounts of tax and payments to cities and towns and fire

districts --- (a) Cities and towns and fire districts shall assess the property described in § 44-13.1-

1(b) [repealed] and shall apply a tax rate to the assessed value in a manner consistent with

property subject to taxation under the provisions of §§ 44-5-1 -- 44-5-22.

     (b) The amount of the tax on the property computed shall be submitted on or before

October 1, 1985, and each year thereafter to the state budget offices.

      (c) The state budget offices shall include the amount of the tax in the state budget for the

next fiscal year, and the General Assembly shall annually appropriate to the several cities and

towns and fire districts any sum that may be necessary to carry out the purposes of this section.

     (d) Distribution of the appropriations and receipts as referenced in § 44-13.1-3 shall be

made by the state on or before July 31 of 1986 and each year thereafter and the payments may be

counted as a receivable by any city or town or fire district for a fiscal year ending the preceding

June 30.

     (e) The state of Rhode Island acting through the department of administration revenue

shall have the right in accordance with § 44-5-26 to seek relief from any assessment.

     SECTION 41. Sections 44-14-2, 44-14-7 and 44-14-8 of the General Laws in Chapter 44-

14 entitled “Taxation of Banks” are hereby amended to read as follows:

44-14-2. Definitions ---For the purposes of this chapter:

     (1) "Administrator" means the tax administrator in the department of administration

revenue appointed under the provisions of § 44-1-1;

     (2) "Banking institution" means every state bank, federal savings bank, trust company,

national banking association, mutual savings bank, building and loan association, and loan and

investment company, but shall not include a credit union, or a corporation specified in § 44-11-

1(1)(vii);

     (3) "Director" means the head of the department of administration revenue appointed

under the provisions of § 42-11-1 42-142-1;

     (4) "Income period" means the calendar year or the fiscal year, or portion, next preceding

the taxable year;

     (5) "Securities" includes, but shall not be limited to:

     (i) Shares of stock or certificates of beneficial interest, or rights to buy the shares or

certificates, of a corporation, joint-stock company, association, or business trust;

     (ii) Bonds, debentures, notes, certificates, or other evidences of indebtedness of any

individual, partnership, corporation, joint-stock company, association, or business trust, including

those issued by the United States government or any state, or political subdivision of either, or

issued by any foreign country or nation or political subdivision thereof;

     (6) "Taxable year" means the calendar year in which the tax is payable or fiscal year

ending during that calendar year, upon the basis of which the tax is computed under this chapter.

"Taxable year" means, in the case of a return made for a fractional part of the year under

provisions of this chapter or under regulations prescribed by the tax administrator, the period for

which the return is made. The term "fiscal year" means an accounting period of twelve (12)

months ending on the last day of any month other than December. The taxable year of a banking

institution shall be the same for purposes of this chapter as it is for federal income tax purposes;

     (7) "Taxpayer" means any banking institution subject to any tax imposed by this chapter.

44-14-7. Extension of time for return ---The tax administrator may grant a reasonable

extension of time for filing returns, under rules and regulations as the tax administrator shall

prescribe, with the approval of the director of the department of administration revenue.

Whenever an extension of time is granted, a taxpayer shall be required to pay as part of any tax

due, interest at the annual rate prescribed by § 44-1-7 from the day when the return should have

been filed as if no extension had been granted.

44-14-8. Statements, returns, and rules and regulations ---Every taxpayer shall render

statements, make returns, and comply with rules and regulations as the tax administrator, with the

approval of the director of the department of administration revenue, may from time to time

prescribe.

     SECTION 42. Section 44-15-17 of the General Laws in Chapter 44-15 entitled “Tax on

Bank Deposits Generally” is hereby amended to read as follows:

44-15-17. Rules and regulations ---The tax administrator, with the approval of the

director of administration revenue, may prescribe rules and regulations that he or she deems

necessary for the administration and the enforcement of this chapter.

     SECTION 43. Section 44-20-52 of the General Laws in Chapter 44-20 entitled “Cigarette

Tax” is hereby amended to read as follows:

44-20-52. Exercise of powers and duties ---Whenever in this chapter any reference is

made to any power or duty of the tax administrator, or controller, the reference is construed to

mean that the power or duty shall be exercised by the tax administrator, or controller, or by the

authorized agent of the officer, under the supervision and direction of the director of

administration revenue.

     SECTION 44. Section 44-23-44 of the General Laws in Chapter 44-23 entitled “Estate

and Transfer Taxes-Enforcement and Collection” is hereby amended to read as follows:

44-23-44. Exercise of statutory power --Whenever in this chapter or chapter 22 of this

title any reference is made to any power or duty of the tax administrator, the reference shall be

construed to mean that the power or duty is exercised by the tax administrator or by his or her

authorized agent, under the supervision and direction of the director of administration revenue.

Whenever in this chapter or chapter 22 of this title any reference is made to any power or duty of

the controller, the reference shall be construed to mean that the power or duty is exercised by the

controller or by his or her authorized agent, under the supervision and direction of the director of

administration revenue.

     SECTION 45. Section 44-27-8 of the General Laws in Chapter 44-27 entitled “Taxation

of Farm, Forest and Open Space Land” is hereby amended to read as follows:

44-27-8. Availability of current values -- Duties of the department of administration.

– Availability of current values – Duties of the department of revenue. -- The department of

administration revenue shall annually publish all information, which it collects that relates to land

values for different types of farm, forest, or open space lands. This information shall be made

available to local assessors.

     SECTION 46. Section 44-29-10 of the General Laws in Chapter 44-23 entitled

“Admissions Tax to Racing Events” is hereby amended to read as follows:

44-29-10. Payment of refunds.  -- All moneys received by the tax administrator under

this chapter shall be paid over to the general treasurer. Whenever the tax administrator determines

that any seller is entitled to a refund of any moneys paid by the seller under the provisions of this

chapter, or whenever a court of competent jurisdiction orders a refund of any paid moneys, the

general treasurer shall, upon certification by the tax administrator and with the approval of the

director of the department of administration revenue, pay the refund from any moneys in the

treasury not appropriated without any further act or resolution making appropriation; provided,

that no refund shall be allowed unless a claim is filed with the tax administrator within three (3)

years from the tenth day after the close of the month for which the overpayment was made. Every

claim for a refund shall be made in writing, shall be in any form, and shall present any

information that the tax administrator may by regulation require. Within thirty (30) days after

disallowing any claim in whole or in part, the tax administrator shall give notice of his or her

decision to the seller. If aggrieved by the decision, the seller, within ten (10) thirty (30) days from

the date of the mailing by the tax administrator of notice of the decision claim denial, may request

a hearing and the tax administrator shall, as soon as practicable, set a time and place for the

hearing. After the hearing, if aggrieved by the decision of the tax administrator, the seller may

petition within fifteen (15) thirty (30) days the sixth division of the district court for relief from

the decision of the tax administrator. The court may confirm the decision of the tax administrator

or order a refund or credit. A party aggrieved by a final order of the court may seek review of the

order in the supreme court by writ of certiorari in accordance with the procedures contained in

§42-35-16 § 8-8-32.

     SECTION 47. Section 44-30.1-1 of the General Laws in Chapter 44-30.1 entitled “Setoff

of Refund of Personal Income Tax” is hereby amended to read as follows:

44-30.1-1. Definitions. -- (a) "Benefit overpayments and interest owed" means any

amount in excess of five hundred dollars ($ 500) determined to be recoverable under the

provisions of chapters 39 -- 44 of title 28.

     (b) "Cash assistance benefit overpayments" means any amount of cash assistance benefits

which constitutes an overpayment of benefits under the provisions of the Family Independence

Act, chapter 5.1 of title 40, and/or the predecessor family assistance program, formerly known as

the Aid to Families With Dependent Children program, as previously established by § 40-6-4,

which overpayment amount has been established by court order, by administrative hearing

conducted by the department of human services, or by written agreement between the department

of human services and the individual.

     (c) "Claimant agency" means either:

     (1) The department of human services, with respect (1) to past-due support which has

been assigned to the department of human services by public assistance and medical assistance

recipients or by the department for children, youth and families, (2) past-due support which it is

attempting to collect on behalf of any individual not eligible as a public assistance recipient, and

(3) cash assistance benefit overpayments, as defined herein; or

     (2) (i) The Rhode Island higher education assistance authority (RIHEAA), with respect to

obligations owed to that agency or to the state of Rhode Island by reason of default or failure to

pay student loans, health professions contract advances or scholarships or grant over-awards, or

(ii) The Rhode Island higher education assistance authority (RIHEAA), acting as agent

for the United States Department of Education or other student loan guarantee agencies in other

states which have negotiated a reciprocal arrangement with the RIHEAA for the setoff of refunds

of personal income taxes against defaulted loan obligations.

     (3) The Rhode Island court administrative office, with respect to court costs, fines, and

restitution owed; or

     (4) The department of labor and training with respect to benefit overpayments and

interest owed in excess of five hundred dollars ($ 500).

     (d) "Court costs owed" means any fines, fees, and/or court costs which have been

assessed pursuant to a criminal disposition by a judge of the district, family and superior courts,

including, but not limited to, those amounts assessed pursuant to chapters 20 and 25 of title 12

and those amounts assessed pursuant to title 31, including also those fines, fees, and/or court costs

assessed by the traffic tribunal or municipal court associated with motor vehicle violations which

have not been paid and which have been declared delinquent by the administrative judge of the

court making the assessment.

     (e) "Debtor" means:

     (1) Any individual who owes past-due support which has been assigned to the department

of human services by public assistance and medical assistance recipients or by the department of

children, youth and families, or owes past due support to any individual not eligible as a public

assistance recipient;

     (2) Any individual who has obligations owed to RIHEAA or the state of Rhode Island,

the United States Department of Education or other states and agencies that have negotiated

reciprocal agreements with RIHEAA;

     (3) Any individual who owes fines, fees, and/or court costs to the superior, family,

district courts and the traffic tribunal and municipal court associated with motor vehicle

violations;

(4) Any individual who owes restitution to any victim of any offense which has been

ordered by a judge of the district, family and superior courts pursuant to a disposition in a

criminal case and which has been made payable through the administrative office of state courts

pursuant to § 12-19-34 except that obligations discharged in bankruptcy shall not be included;

(5) Any individual who owes any sum in excess of five hundred dollars ($ 500) for

benefit overpayments and interest to the department of labor and training determined to be

recoverable under the provisions of chapters 39-44 of title 28.

     (6) Any individual who owes any sum of cash assistance benefit overpayments to the

department of human services.(f) "Division" means the department of administration revenue,

division of taxation.

     (g) "Fines owed" means any fines, fees, and/or court costs which have been ordered paid

as a penalty in a criminal case by a judge of the district, family and superior courts and those

fines, fees, and/or court costs ordered paid by the traffic tribunal or municipal court for motor

vehicle violations as described in § 31-41.1-4 which have not been paid and which have been

declared delinquent by the administrative judge of the court making the assessment.

      (h) "Obligation owed" means the total amount owed by any individual on:

     (1) Any guaranteed student loan or parent loan for undergraduate students for which

RIHEAA has had to pay the guarantee, or for which RIHEAA is acting as agent on behalf of the

United States Department of Education or other state cooperating agencies which have had to pay

a guarantee,

     (2) Any contract fee advanced by either RIHEAA or the state of Rhode Island on behalf

of any individual participating in a health professions educational program for which payment has

not been made according to the terms of the contract, and

     (3) Any amount of scholarship or grant funds which constitutes an over-award, whether

due to error or to the submission of false information, and for which repayment has been

demanded by the agency, but which has not been paid.

     (i) "Past-due support" means the amount of court-ordered child support or maintenance,

child medical support or a spousal support order for a custodial parent having custody of a minor

child, which is overdue or otherwise in arrears, regardless of whether there is an outstanding

judgment for that amount, and whether the order for the support or maintenance has been

established by a court or by an administrative process authorized under the laws of any state.

     (j) "Refund" means the Rhode Island income tax refund which the division of taxation

determines to be due to a taxpayer.

     (k) "Restitution owed" means any amount which has been ordered paid pursuant to a

criminal case disposition by a judge of the district, family and superior courts pursuant to chapter

19 of title 12, which has not been paid and which has been declared delinquent by the

administrative judge of the court making the assessment.

     SECTION 48. Section 44-30.2-1 of the General Laws in Chapter 44-30.2 entitled

“Reciprocity Agreements-Setoff of Refund of Personal Income Tax” is hereby amended to read

as follows:

44-30.2-1. Reciprocity board ---There is established a reciprocity board, referred to as

"the board". The board shall be composed of three (3) members, consisting of the tax

administrator, division of taxation, within the department of administration revenue, the director of

the department of human services, and an assistant attorney general designated by the attorney

general, ex officio. A majority of the members of the board shall constitute a quorum and the

action of the majority of the members in attendance at any meeting is the action of the board.

Whenever a member of the board is absent from a meeting of the board, the member may

designate one of the member's assistants or employees to attend in the member's behalf. That

assistant or employee is entitled to participate in the discussions and proceedings of the board, but

he or she is not entitled to vote.

     SECTION 49. Section 44-33.1-5 of the General Laws in Chapter 44-33.1 entitled

“Property Tax Relief-Historical Residences” is hereby amended to read as follows:

44-33.1-5. Form of application and certification ---The commission shall promulgate

all application and certification forms and guidelines for certified maintenance and rehabilitation.

The commissioner is authorized to establish a schedule of fees for the review of income tax credit

applications. The department of administration revenue, division of taxation, shall approve the

certification form used in filing for state income tax credit and shall develop state income tax

forms to calculate and claim income tax credit.

     SECTION 50. Sections 44-34-6 and 44-34-12 of the General Laws in Chapter 44-34

entitled “Excise Tax on Motor Vehicles and Trailers” are hereby amended to read as follows:

44-34-6. Fire districts ---The provisions of this chapter shall apply in all respects in the

case of taxes assessed upon motor vehicles by any fire district. Effective with the year 2000 tax

roll based upon values of December 31, 1999, the authority of fire districts as authorized by

general or public law to levy excise taxes on motor vehicles is eliminated and each district shall

be reimbursed for one hundred percent (100%) of current year lost revenues based upon what the

levy net of personal exemptions would otherwise have been. That reimbursement shall be based

upon submission of information to the department of administration revenue on the dates

specified in § 44-34.1-2, and reimbursements shall be paid on the dates specified in that section.

Future year reimbursements shall be based upon the year 2000 tax roll and values of December

31, 1999, and indexed by applying the annual change in the December Consumer Price Index --

All Urban Consumers (CPI-U).

44-34-12. Cooperation of state agencies ---The department of administration revenue

shall provide space and secretarial and clerical services to the Rhode Island vehicle value

commission without charge to the commission. The department of transportation, and the

department of administration revenue shall provide, consistent with law, information that is in

their possession, which the commission determines to be useful or necessary in the conduct of its

responsibilities.

     SECTION 51. Section 44-34.1-3 of the General Laws in Chapter 44-34.1 entitled “Motor

Vehicle and Trailer Excise Tax Elimination Act of 1998“ is hereby amended to read as follows:

44-34.1-3. Permanent oversight commission ---(a) There is created a permanent

oversight commission on inventory taxes and automobile excise taxes. The commission shall

consist of the following members:

      (1) Chairperson of house finance committee, or designee;

     (2) Chairperson of senate finance committee, or designee;

     (3) Chairperson of the Rhode Island vehicle value commission;

     (4) Three (3) members of the Rhode Island Assessors Association;

     (5) Director of department of administration revenue or designee;

     (6) Chief of the office of municipal affairs division of property valuation and municipal

finance, or designee;

     (7) The president of the Rhode Island League of Cities and Towns, or designee;

     (8) The administrator of the Rhode Island division of motor vehicles, or designee;

     (9) The mayor of the city of Providence, or designee.

     SECTION 52. Sections 44-35-4, 44-35-6 and 44-35-8 of the Rhode Island General Laws

in Chapter 44-35 entitled “Property Tax and Fiscal Disclosure – Municipal Budgets” is hereby

amended to read as follows:

44-35-4. Preparation of the "proposed property tax rate" and "adjusted current

property tax rate"---The director of the department of administration revenue shall prepare and

adopt by rule standards and procedures for town and cities to follow when preparing the

"proposed property tax rate" and "adjusted current property tax rate." The director has the

authority to waive the rule for any town or city, which the director deems to have established an

acceptable method of preparation of the "proposed property tax rate" and "adjusted current

property tax rate."

44-35-6. Publication of property tax rates ---At least ten (10) calendar days prior to the

hearing for the purpose of adopting the town or city budget, the chief elected official in each town

or city shall cause to be published a notice indicating the town's or city's intent to consider

adopting a property tax levy. This notice shall be published in a newspaper of general circulation

in the town or city. However, this notice may not be placed in that portion of the newspaper

where legal notices and classified advertisements appear. This notice shall constitute notice of

public hearing which may coincide with the hearing on the proposed budget and shall be by and

in the following form:

      (CITY, TOWN) of (NAME)

     NOTICE OF PROPOSED PROPERTY TAX

     RATE CHANGE

     The (City, Town) proposes to increase (decrease) its property tax levy to      in the     

budget year; the property tax levy this year is________      , THIS IS A PROPOSED INCREASE

(DECREASE) OF _________   %.

     It has been estimated that the proposed increase (decrease) in property tax revenues will

result in a property tax rate of $_________     (proposed property tax rate) per $ 1,000 assessed

valuation, as compared to the current property tax rate of $__________     per $ 1,000 assessed

valuation.

     A property tax rate of $_________     (adjusted current property tax rate) would be

needed in the coming budget year to raise five and one-half percent (5.5%) more, as an

adjustment for increased costs, than the property tax revenues being raised in the current budget

year. The (City, Town) budget________ will be considered at (date,time,place).

     The above property tax estimates have been computed in a manner approved by the

Rhode Island Department of Administration Revenue. Chief Elected Official (Town, or City)

44-35-8. Publication of proposal to amend town and city budget ---At least ten (10)

calendar days prior to formal action taken by a town or city to amend its adopted budget when the

amendment would result in an accumulated increase in total property tax expenditures of five

percent (5%), the chief elected official shall cause to be published in a newspaper of general

circulation a notice of a proposal to amend the town or city budget. The notice shall contain a

summary of the proposed amendment stating the purpose of the proposed expenditures and the

impact the amendment is estimated to have on property taxes. The notice shall be in a form

approved by the director of the department of administration revenue and it shall constitute a

notice of public hearing.

     SECTION 53. Section 44-38-2 of the General Laws in Chapter 44-38 entitled “Energy

Conservation Grants for the Elderly” is hereby amended to read as follows:

44-38-2. Energy conservation grant ---An owner or renter of a residential dwelling

where the dwelling is the owner's or renter's principal residence, and where the owner is age

sixty-five (65) or over and who is not required under provisions of existing tax law to file with the

Rhode Island department of administration revenue, division of taxation, a state income tax return

or a federal income tax return with the internal revenue service or who does not receive a tax

rebate for energy conservation, is eligible for a one time energy conservation grant of fifty

percent (50%) of any sums expended for the purchase and installation of energy conservation

items as prescribed in § 44-38-3 for use in the dwelling. The grant shall not exceed two hundred

dollars ($ 200).

     SECTION 54. Section 44-50-7 of the General Laws in Chapter 44-50 entitled “Health

Care Provider Assessment Act” is hereby amended to read as follows:

44-50-7. Claims for refund -- Hearing upon denial. -- (a) Any provider, subject to the

provisions of this chapter, may file a claim for refund with the tax administrator at any time

within two (2) years after the assessment has been paid. If the tax administrator shall determine

that the assessment has been overpaid, he or she shall make a refund with interest from the date of

overpayment.

     (b) Any provider whose claim for refund has been denied may, within thirty (30) days

from the date of the mailing by the tax administrator of the notice of the tax decision refund claim

denial file a written request for hearing with the tax administrator and the tax administrator shall,

as soon as practicable, set a time and place for the hearing and shall notify the provider. After

hearing, the tax administrator shall issue a decision as to the correctness of the tax, interest and

penalty.

     SECTION 55. Section 44-58-3 of the General Laws in Chapter 44-58 entitled

“Streamlined Sales Tax System” is hereby amended to read as follows:

44-58-3. "Tax administrator" defined ---As used in this chapter, "tax administrator"

means the tax administrator within the department of administration revenue as provided for in §

44-1-1.

     SECTION 56. 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 §§

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 revenue

(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 of administration revenue 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 revenue; 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 revenue 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 §

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

revenue 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 § 45-9-3(a)(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 § 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

§ 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 57. Sections 45-10-1, 45-10-2, 45-10-3, 45-10-5, 45-10-6.1, 45-10-8, 45-10-

11, 45-10-12,45-10-13, 45-10-13, 45-10-14, and 45-10-15 of the General Laws in Chapter 45-10

entitled “Audit of Accounts and Installation System” are hereby amended to read as follows:

45-10-1.  Power to petition for installation of system. – The electors of any town or

city qualified to vote on a proposition to impose a tax, or any town or city council, when legally

assembled, may, by vote, petition the state director of administration revenue for the installation

of an accounting system for the town or city.

45-10-2. Certification of vote to install system – Installation. – Upon the passage of

the vote petitioning the state director of administration revenue for the installation of a system of

accounting as provided in § 45-10-1, the town or city clerk or any other person so authorized in

that vote shall immediately forward by registered or certified mail to the the director of

administration revenue and to the town or city treasurer or any other person having custody of the

accounts, a certified copy of the vote, and the director of administration revenue shall cause an

accounting system to be installed in the town or city.

45-10-3. Assistance in operation of system. – Whenever a system of accounting has

been installed under the provisions of this chapter, the town or city council of the municipality in

which the system is installed may request the assistance of the state director of administration

revenue in the operation of the system, and the state director of administration revenue shall

furnish any temporary clerical assistance and other assistance as that in the director's judgment

may be necessary.

45-10-5. Filing of audit report. – The accountants making the post audit required by §

45-10-4 shall submit a report on their examination of the financial statements to the city or town

audited, and the town or city clerk of the city or town shall file duplicate copies of the post audit

with the state director of administration revenue and the state auditor general not later than six (6)

months after the close of the fiscal year. The copy of the report filed with the director of

administration revenue shall be a public record. The auditor general may, in his or her discretion,

grant extensions in the filing of the audit report only upon reasonable cause for the extension

being demonstrated by the municipality. In those cases, the determination of the auditor general

as to the existence of reasonable cause shall be deemed conclusive.

45-10-6.1. Corrective action plan. – If the auditor conducting the post audit expresses

an opinion on the financial statements of a municipality or school district that is other than

unqualified, the chief finance officer of the municipality or school district shall submit a detailed

corrective action plan and timetable, which addresses the issue(s) which caused the auditor's

qualified opinion on the financial statements. The plan and timetable shall be submitted to the city

or town council, the school committee, state auditor general and director of administration

revenue within forty-five (45) days of receipt of the final audit. The chief finance officer of each

municipality and each school district shall also submit all findings and recommendations reported

by the auditors making the post audit, including those reported in a separate management letter, to

the city or town council, to the state auditor general, the school committee and director of. The

chief finance officer of the municipality and each school district shall prepare a plan of

administration revenue corrective action and timetable for all findings and recommendations and

shall submit the plan to the city or town council, the school committee, state auditor general and

director of administration revenue within forty-five (45) days of receipt of a written report or

letter of findings and recommendations from the auditors. All management letters shall be public

records. The term school district shall include regional school districts.

45-10-8. Notice of engagement of accountants – Failure to provide notice of

engagement to director of administration. – Notice of engagement of accountants – Failure

to provide Notice of engagement to director of revenue. -- Notice of the engagement of the

certified public accountant or accountants pursuant to § 45-10-4, shall be mailed by the city or

town clerk to the director of administration revenue and the auditor general by registered or

certified mail during the period preceding the 60th day prior to the close of the fiscal year. If the

notice is not received by the director of administration revenue during that period, the director

shall notify the city or town by registered or certified mail of their failure to notify, and failure to

receive the notice of the engagement of the certified public accountant or accountants within

thirty (30) days following the registered or certified mailing shall permit the director to file notice

for the withholding of state funds pursuant to § 45-10-12.

45-10-11.  Compelling attendance of witnesses and production of records. – The

director of administration revenue, at the request of the person or persons authorized by § 45-10-4

to make a post audit, may summon and compel the attendance of witnesses for examination under

oath, and may compel the production of accounts and records described in § 45-10-9.

45-10-12. Withholding of funds due towns failing to file reports. – Whenever any

town or city fails to file a duplicate copy of the audit report as required in § 45-10-5 within the

time required by that section, or files a report that does not fully comply with the requirements of

§§ 45-10-5 and 45-10-6, or fails to provide the notice of engagement of accountant or accountants

as required by § 45-10-8 within the time required by that section, the state director of

administration revenue shall immediately, with the concurrence of the auditor general, notify the

treasurer and the town or city clerk of the town or city and the general treasurer of that fact, and

the general treasurer shall withhold any and all payments of money due or that may become due

to the town or city during the period that the town or city fails to comply with the provisions of §§

45-10-4 – 45-10-8.

45-10-13.  Costs of audits, installation of accounting systems, or other assistance. –

Each town or city for which an audit has been made, a system of accounting installed, or clerical

or other assistance furnished, under the provisions of this chapter, shall pay to the general

treasurer a sum equal to the actual cost to the state of any of these services as shown by the

records of the state director of administration revenue and certified to by the director to the town

or city treasurer and the general treasurer. The payments shall be made within thirty (30) days

after the receipt by the treasurer of the town or city of the certificate of the state director of

administration revenue.

45-10-14.  Appropriations and disbursements. – The general assembly shall annually

appropriate any sums that it deems necessary for the purpose of carrying out the provisions of this

chapter, and the state director of administration revenue is authorized and directed to draw his or

her orders upon the general treasurer for the payment of these sums or so much of them as may

from time to time be required.

45-10-15. Compliance with requirements of "governmental accounting standards

board (GASB)" pension funding. – For any audit year in which a municipality contributes

materially less than 100% of the annual required contribution to its pension plan(s) as reported in

accordance with GASB statement 27 or any successor statement, the municipality shall submit to

the auditor general and the director of administration revenue within three (3) months of

completion of the financial statement, the municipality's most recent actuarial study of the plan(s)

and management's recommendations for assuring future payments equal to the annual pension

cost (APC).

     SECTION 58. Sections 45-12-11, 45-12-22.4, and 45-12-22.6 of the General Laws in

Chapter 45-12 entitled “Indebtedness of Towns and Cities” are hereby amended to read as

follows:

45-12-1.  Authority for issuance of indebtedness excess. – The state director of

administration revenue may, upon petition by the city or town council, authorize the city or town

to incur indebtedness in excess of the limit of three percent (3%) of the taxable property of the

town imposed by § 45-12-2 whenever the director determines that the sum appropriated by any

city or town or the funds available are insufficient to pay the necessary expenses of the city or

town. For this purpose the state director of administration revenue may require any information

concerning the financial condition of the city or town that the director may deem necessary for

the proper exercise of that authority.

45-12-22.4.  Deficit financing – Approval required. – No municipality shall sell a long-

term bond in order to fund a deficit without prior approval by the state auditor general and

director of the state department of administration revenue.

45-12-22.6.  Cooperation of school committees. – School committees, boards, or

regional school districts that are independent governmental entities within a municipality shall

cooperate in providing to the chief financial officer all information needed to formulate the

reports and the deficit elimination plan required under this chapter. The auditor general or the

state director of administration revenue may petition the superior court to order the school

committee or board to cooperate with the municipality and provide all information requested by

the chief financial officer needed to formulate a plan hereunder. The director of administration

revenue may also direct the state controller and general treasurer to withhold state aid to the

school committee until the school committee or board cooperates in the formulation of a plan.

     SECTION 59. Sections 45-13-2, 44-13-5.2, 45-13-8, 45-13-9 and 44-13-14 of the

General Laws in Chapter 45-13 entitled “State Aid” are hereby amended to read as follows:

45-13-2.  "Tax levy" defined. – For the purposes of this chapter, "tax levy" means the

total amount of taxes annually certified by the assessors of taxes of the cities and towns, as shown

on the annual reports certified by the assessors to the director of administration revenue;

provided, that whenever a city or town, incidental to changing its fiscal year, orders a tax levy to

pay its expenses for a fiscal period other than twelve (12) months, "tax levy" means the tax levy

of the city or town of the calendar year preceding the calendar year in which the change of fiscal

year takes place.

45-13-5.2.  Valuation of tax exempt property for purposes of computing state grants.

– Not later than August first in any year, any town or municipality to which a grant may be

payable under the provisions of § 45-13-5.1, shall provide the director of administration revenue

with the assessed valuation of the tax exempt real property which is required for the computation

of the grant. The director of administration revenue may, on or before April 30 next succeeding

the receipt of the statement, reevaluate any exempt property when, in the director's judgment the

valuation made by the local assessor or assessors is inaccurate, and shall notify the municipality

of the reevaluation. Any municipality aggrieved by the action of the director of administration

revenue under the provisions of this section may, within two (2) weeks of the notice, file an

appeal consistent with the provisions of chapter 35 of title 42.

45-13-8.  Reports. [Effective January 1, 2007.]. – (a) The department of administration

revenue in consultation and cooperation with towns and cities shall maintain:

     (1) An identification of state mandates created by statute since January 1, 1970;

     (2) Specific identification of all state mandates established since July 1, 1979 which are

subject to reimbursement in accordance with § 45-13-9, and the cost of each of these mandates to

each city and town.

     (b) The department of administration revenue shall annually by January 1 issue a report

identifying the state's mandates established during the preceding July 1 – June 30 period and

stating the cost by city and town of all state mandates established after January 1, 1979, for the

next preceding July 1 – June 30 period. The department of administration revenue shall annually

issue to cities and towns a comprehensive listing of all state mandates established after January 1,

1979.

     (c)(1) Statutes and regulations containing state mandates shall include items eligible for

reimbursement; however, failure to include these items shall not exempt any state mandates not

otherwise exempted from the provisions of §§ 45-13-7 – 45-13-10.

     (2) Cities and towns shall submit to the department of administration revenue in any form

that may be established by the department, a report of the cost of each state mandate established

after January 1, 1979, to the city or town. The reports shall be submitted by April 1 each year and

shall state costs incurred by the city or town during the preceding July 1 – June 30 period.

     (3) The reports of cities and towns requesting reimbursement for state mandates are

subject to audit procedures established under § 45-10-5.1.

     (d) The department of administration revenue shall issue by January 1, 1988 and by

January 1 of each fourth (4th) year thereafter, a report to the governor and the General Assembly

recommending the modification or repeal of existing state mandates which are deemed to be

inappropriate or obsolete and citing the reason for the recommendation on the fourth (4th) year

anniversary of those state mandates. This report shall be prepared by the Rhode Island office of

municipal affairs division of property valuation and municipal finance within the department of

administration revenue in consultation and cooperation with the affected state agencies and the

Rhode Island league of cities and towns and the Rhode Island association of school committees.

     (e) All reports issued by the department of administration revenue in accordance with this

subsection shall be adopted by rule as provided for in chapter 35 of title 42.

45-13-9.  Reimbursement to cities and towns and school districts for the costs of

state mandates. [Effective January 1, 2007.]. – (a)(1) The department of administration revenue

shall submit to the budget office by October 1 of each year, a report by each city and town, of the

cost of state mandates established after January 1, 1979, to be reimbursed for the next preceding

July 1 – June 30 period.

     (2) The budget office shall annually include the statewide total of the statement of costs

of state mandates to be reimbursed in the state budget for the next fiscal year; provided, that any

costs resulting from the rules and regulations of state departments or agencies shall be allocated

to the budgets of those departments or agencies.

     (b) The state treasurer shall in July of each year distribute to cities and towns the

reimbursements for state mandated costs in accordance with the report submitted by the

department of administration revenue to the state budget office.

45-13-14.  Adjustments to tax levy, assessed value, and full value when computing

state aid. – (a) Whenever the director of administration revenue computes the relative wealth of

municipalities for the purpose of distributing state aid in accordance with title 16 and the

provisions of § 45-13-12, he or she shall base it on the full value of all property except:

     (1) That exempted from taxation by acts of the general assembly and reimbursed under §

45-13-5.1 of the general laws, which shall have its value calculated as if the payment in lieu of

tax revenues received pursuant to § 45-13-5.1, has resulted from a tax levy;

     (2) That whose tax levy or assessed value is based on a tax treaty agreement authorized

by a special public law or by reason of agreements between a municipality and the economic

development corporation in accordance with § 42-64-20 prior to May 15, 2005, which shall not

have its value included;

     (3) That whose tax levy or assessed value is based on tax treaty agreements or tax

stabilization agreements in force prior to May 15, 2005, which shall not have its value included;

     (4) That which is subject to a payment in lieu of tax agreement in force prior to May 15,

2005;

     (5) Any other property exempt from taxation under state law; or

     (6) Any property subject to chapter 27 of title 44, taxation of Farm, Forest, and Open

Space Land.

     (b) The tax levy of each municipality and fire district shall be adjusted for any real estate

and personal property exempt from taxation by act of the general assembly by the amount of

payment in lieu of property tax revenue anticipated to be received pursuant to § 45-13-5.1 relating

to property tax from certain exempt private and state properties, and for any property subject to

any payment in lieu of tax agreements, any tax treaty agreements or tax stabilization agreements

in force after May 15, 2005, by the amount of the payment in lieu of taxes pursuant to such

agreements.

     (c) Fire district tax levies within a city or town shall be included as part of the total levy

attributable to that city or town.

     (d) The changes as required by subsections (a) through (c) of this section shall be

incorporated into the computation of entitlements effective for distribution in fiscal year 2007-

2008 and thereafter.

     SECTION 60. This act shall take effect upon passage.

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LC01880/SUB A/2

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