ARTICLE 10 SUBSTITUTE A

RELATING TO JUDICIAL ARBITRATION FEES

 

     SECTION 1. Section 8-6-5 of the General Laws in Chapter 8-6 entitled “General Powers

of Supreme and Superior Courts” is hereby amended to read as follows:

 

     8-6-5.  Arbitration of civil actions. – The presiding justice of the superior court may

promulgate rules and regulations providing for compulsory and/or noncompulsory nonbinding

arbitration of such category or categories of civil actions filed in or appealed to the superior court

as he or she shall determine. The matter shall be heard by a single arbitrator who shall be selected

by mutual agreement of the plaintiff(s) and defendant(s). If after thirty (30) days the plaintiff(s)

and defendant(s) are unable to agree upon the selection of an arbitrator, a justice of the superior

court shall select the arbitrator upon request in writing from either party. The costs of arbitration

shall be borne by the Rhode Island state court system and a reasonable cost of the arbitration not

to exceed three hundred dollars ($300) per case may be assessed and apportioned to each of the

parties by the superior court pursuant to rules and regulations promulgated by the presiding

justice of the superior court consistent with § 8-6-6. The assessed costs received from the parties

shall be deposited into the general fund. Any party dissatisfied with the decision of the arbitrator

may demand a trial by jury if one was timely claimed in the complaint or answer, or a trial by

judge if no jury trial was claimed. The decision of the arbitrator shall not be admissible at the

trial. The court may require a party who rejects an arbitrator's award and demands a trial to post a

two hundred dollar ($200) filing fee. The filing fee shall be posted with the superior court clerk

and deposited into the general fund an arbitration fund restricted receipt account established

under the control of the state court director of finance. The arbitration funds shall not be subject

to the indirect cost recoveries provisions set forth in § 35-4-27. If more than one party rejects the

arbitrator's award and demands a trial, the filing fee shall be apportioned amongst them. Should

the verdict at trial be more favorable to the party than the arbitrator's award, the filing fee shall be

reimbursed to that party. Should the verdict be equal to or less favorable to the party than the

arbitrator's award, the filing fee posted shall be forfeited as a sanction. If forfeited as a sanction

the fee shall remain available to the general fund. for program expenses from the arbitration fund

restricted receipt account. The presiding justice of the superior court shall be authorized to retain

the services of qualified arbitrators and to direct payment for such services and other related

expenses from the arbitration fund restricted receipt account and may appoint an administrator of

the arbitration program for a ten (10) year term and until a successor is appointed and qualified.

 

     SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled “State

Funds” is hereby amended to read as follows:

 

     35-4-27.  Indirect cost recoveries on restricted receipt accounts. – Indirect cost

recoveries of ten percent (10%) of cash receipts shall be transferred from all restricted receipt

accounts, to be recorded as general revenues in the general fund. However, there shall be no

transfer from cash receipts with restrictions received exclusively: (1) from contributions from

non-profit charitable organizations; (2) from the assessment of indirect cost recovery rates on

federal grant funds; or (3) through transfers from state agencies to the department of

administration for the payment of debt service. These indirect cost recoveries shall be applied to

all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The

following restricted receipt accounts shall not be subject to the provisions of this section:

     Department of Human Services

         Veterans' home – Restricted account

         Veterans' home – Resident benefits

         Organ transplant fund

         Veteran's Cemetery Memorial Fund

     Department of Health

         Pandemic medications and equipment account

     Department of Mental Health, Retardation and Hospitals

         Hospital Medicare Part D Receipts

         RICLAS Group Home Operations

     Department of Environmental Management

         National heritage revolving fund

         Environmental response fund II

         Underground storage tanks

     Rhode Island Council on the Arts

         Art for public facilities fund

     Rhode Island Historical Preservation and Heritage Commission

         Historic preservation revolving loan fund

         Historic Preservation loan fund – Interest revenue

     State Police

         Forfeited property – Retained

         Forfeitures – Federal

         Forfeited property – Gambling

         Donation – Polygraph and Law Enforcement Training

     Attorney General

         Forfeiture of property

         Federal forfeitures

         Attorney General multi-state account

     Department of Administration

       Restore and replacement – Insurance coverage

         Convention Center Authority rental payments

         Investment Receipts – TANS

         Car Rental Tax/Surcharge-Warwick Share

         OPEB System Restricted Receipt Account

     Legislature

         Audit of federal assisted programs

     Department of Elderly Affairs

         Pharmaceutical Rebates Account

     Department of Children Youth and Families

         Children's Trust Accounts – SSI

     Military Staff

         RI Military Family Relief Fund

     Treasury

         Admin. Expenses – State Retirement System

         Retirement – Treasury Investment Options

     Business Regulation

         Banking Division Reimbursement Account

     Office of the Health Insurance Commissioner Reimbursement Account

         Securities Division Reimbursement Account

         Commercial Licensing and Racing and Athletics Division Reimbursement

Account

         Insurance Division Reimbursement Account

     Historic Preservation Tax Credit Account

     Judiciary

      Arbitration Fund Restricted Receipt Account

 

      SECTION 3. This article shall take effect as of July 1, 2009.