Chapter 239

2010 -- H 7893 SUBSTITUTE A

Enacted 06/25/10

 

A N A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

          

     Introduced By: Representatives Mattiello, and Watson

     Date Introduced: March 10, 2010

     

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 16-16-12 of the General Laws in Chapter 16-16 entitled "Teachers'

Retirement" is hereby amended to read as follows:

 

     16-16-12. Procedure for service retirement. -- (a) Retirement of a member on a service

retirement allowance shall be made by the retirement board as follows:

      (1)(a)(i) Any member may retire upon his or her written application to the retirement

board as of the first day of the calendar month in which the application was filed, provided the

member was separated from service prior to filing the application, and further provided however,

that if separation from service occurs during the month in which the application is filed, the

effective date shall be the first day following the separation from service, and provided further

that the member on retirement date has attained the age of sixty (60) years and has completed at

least ten (10) years of contributory service on or before July 1, 2005, or regardless of age has

completed twenty-eight (28) years of total service and has completed at least ten (10) years of

contributory service on or before July 1, 2005, and who retire before October 1, 2009 or are

eligible to retire as of September 30, 2009.

      (ii) For teachers who become eligible to retire on or after October 1, 2009, benefits are

available to teachers who have attained the age of sixty-two (62) and completed at least ten (10)

years of contributory service. For teachers in service as of October 1, 2009 who were not eligible

to retire as of September 30, 2009, the minimum retirement age of sixty-two (62) will be adjusted

downward in proportion to the amount of service the member has earned as of September 30,

2009. The proportional formula shall work as follows:

      (1)(A) The formula shall determine the first age of retirement eligibility under the laws

in effect on September 30, 2009 which shall then be subtracted from the minimum retirement age

of sixty-two (62).

      (2)(B) The formula shall then take the teacher's total service credit as of September 30,

2009 as the numerator and the years of service credit determined under (1)(A) as the

denominator.

      (3)(C) The fraction determined in (2)(B) shall then be multiplied by the age difference in

(1)(A) to apply a reduction in years from age sixty-two (62).

      (b) (i) Any member, who has not completed at least ten (10) years of contributory

service on or before July 1, 2005, may retire upon his or her written application to the retirement

board as of the first day of the calendar month in which the application was filed; provided, the

member was separated from service prior thereto; and further provided, however, that if

separation from service occurs during the month in which application is filed, the effective date

shall be the first day following that separation from service; provided, the member on his or her

retirement date had attained the age of fifty-nine (59) and had completed at least twenty-nine (29)

years of total service; or provided, that the member on his or her retirement date had attained the

age of sixty-five (65) and had completed at least ten (10) years of contributory service; or

provided, that the member on his or her retirement date had attained the age of fifty-five (55) and

had completed twenty (20) years of total service and provided, that the retirement allowance, as

determined according to the formula in section 16-16-13 is reduced actuarially for each month

that the age of the member is less than sixty-five (65) years and who retire before October 1, 2009

or are eligible to retire as of September 30, 2009.

      (ii) For teachers who become eligible to retire on or after October 1, 2009, benefits are

available to teachers who have attained the age of sixty-two (62) and have completed at least

twenty-nine (29) years of total service or have attained the age of sixty-five (65) and completed at

least ten (10) years of contributory service. For teachers in service as of October 1, 2009 who

were not eligible to retire as of September 30, 2009, who have a minimum retirement age of

sixty-two (62), the retirement age will be adjusted downward in proportion to the amount of

service the member has earned as of September 30, 2009. The proportional formula shall work as

follows:

      (1)(A) The formula shall determine the first age of retirement eligibility under the laws

in effect on September 30, 2009 which shall then be subtracted from the minimum retirement age

of sixty-two (62).

      (2)(B) The formula shall then take the teacher's total service credit as of September 30,

2009 as the numerator and the years of service credit determined under (1)(A) as the

denominator.

      (3)(C) The fraction determined in (2)(B) shall then be multiplied by the age difference

determined in (1)(A) to apply a reduction in years from age sixty-two (62).

      (2)(c) Any member also paying into the retirement system under the provisions of

chapter 9 of title 36 shall not be disqualified from receiving benefits provided by that chapter and

the provisions of this chapter simultaneously.

      (3) (i)(d) (1) Except as specifically provided in sections 36-10-9.1, 36-10-12 through 36-

10-15, and 45-21-19 through 45-21-22, no member shall be eligible for pension benefits under

this chapter unless the member shall have been a contributing member of the employees'

retirement system for at least ten (10) years.

      (ii)(2) Provided, however, a person who has ten (10) years service credit shall be vested.

      (iii)(3) Furthermore, any past service credits purchased in accordance with section 36-9-

38 shall be counted towards vesting.

      (iv)(4) Any person who becomes a member of the employees' retirement system

pursuant to section 45-21-8 shall be considered a contributing member for the purpose of chapter

21 of title 45 and this chapter.

      (v)(5) Notwithstanding any other provision of law, no more than five (5) years of service

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

of service credit before January 1, 1995, shall be permitted to apply the purchases towards the

member's service retirement. However, no further purchase will be permitted. Repayment, in

accordance with applicable law and regulation, of any contribution previously withdrawn from

the system shall not be deemed a purchase of service credit.

      (4)(e) No member of the teachers' retirement system shall be permitted to purchase

service credits for casual or seasonal employment, for employment as a page in the general

assembly, or for employment at any state college or university while the employee is a student or

graduate of the college or university.

      (5)(f) Except as specifically provided in sections 16-16-6.2 and 16-16-6.4, a member

shall not receive service credit in this retirement system for any year or portion of a year which

counts as service credit in any other retirement system in which the member is vested or from

which the member is receiving a pension and/or any annual payment for life. This subsection

shall not apply to any payments received pursuant to the federal Social Security Act, 42 U.S.C.

section 301 et seq.

      (6)(g) A member who seeks to purchase or receive service credit in this retirement

system shall have the affirmative duty to disclose to the retirement board whether or not he or she

is a vested member in any other retirement system and/or is receiving a pension, retirement

allowance, or any annual payment for life. The retirement board shall have the right to investigate

as to whether or not the member has utilized the same time of service for credit in any other

retirement system. The member has an affirmative duty to cooperate with the retirement board

including, by way of illustration and not by way of limitation, the duty to furnish or have

furnished to the retirement board any relevant information that is protected by any privacy act.

      (7)(h) A member who fails to cooperate with the retirement board shall not have the time

of service credit counted toward total service credit until the time the member cooperates with the

retirement board and until the time the retirement board determines the validity of the service

credit.

      (8)(i) A member who knowingly makes a false statement to the retirement board

regarding service time or credit shall not be entitled to a retirement allowance and is entitled only

to the return of his or her contributions without interest.

 

     SECTION 2. Section 19-14-1 of the General Laws in Chapter 19-14 entitled "Licensed

Activities" is hereby amended to read as follows:

 

     19-14-1. Definitions. -- Unless otherwise specified, the following terms shall have the

following meanings throughout chapters 14.1, 14.2, 14.3, 14.4, 14.6, 14.8 and 14.10 of this title:

      (1) "Check" means any check, draft, money order, personal money order, or other

instrument for the transmission or payment of money. For the purposes of check cashing,

travelers checks or foreign denomination instruments shall not be considered checks. "Check

cashing" means providing currency for checks;

      (2) "Deliver" means to deliver a check to the first person who in payment for the check

makes or purports to make a remittance of or against the face amount of the check, whether or not

the deliverer also charges a fee in addition to the face amount, and whether or not the deliverer

signs the check;

      (3) "Electronic money transfer" means receiving money for transmission within the

United States or to locations abroad by any means including, but not limited to, wire, facsimile or

other electronic transfer system;

      (4) (i) "Lender" means any person who makes or funds a loan within this state with the

person's own funds, regardless of whether the person is the nominal mortgagee or creditor on the

instrument evidencing the loan;

      (ii) A loan is made or funded within this state if any of the following conditions exist:

      (A) The loan is secured by real property located in this state;

      (B) An application for a loan is taken by an employee, agent, or representative of the

lender within this state;

      (C) The loan closes within this state;

      (D) The loan solicitation is done by an individual with a physical presence in this state;

or

      (E) The lender maintains an office in this state.

      (iii) The term "lender" shall also include any person engaged in a transaction whereby

the person makes or funds a loan within this state using the proceeds of an advance under a line

of credit over which proceeds the person has dominion and control and for the repayment of

which the person is unconditionally liable. This transaction is not a table funding transaction. A

person is deemed to have dominion and control over the proceeds of an advance under a line of

credit used to fund a loan regardless of whether:

      (A) The person may, contemporaneously with or shortly following the funding of the

loan, assign or deliver to the line of credit lender one or more loans funded by the proceeds of an

advance to the person under the line of credit;

      (B) The proceeds of an advance are delivered directly to the settlement agent by the line

of credit lender, unless the settlement agent is the agent of the line of credit lender;

      (C) One or more loans funded by the proceeds of an advance under the line of credit is

purchased by the line of credit lender; or

      (D) Under the circumstances as set forth in regulations adopted by the director or the

director's designee pursuant to this chapter;

      (5) "Licensee" means any person licensed under this chapter;

      (6) "Loan" means any advance of money or credit including, but not limited to:

      (i) Loans secured by mortgages;

      (ii) Insurance premium finance agreements;

      (iii) The purchase or acquisition of retail installment contracts or advances to the holders

of those contracts;

      (iv) Educational loans;

      (v) Any other advance of money; or

      (vi) Any transaction such as those commonly known as "pay day loans," "pay day

advances," or "deferred presentment loans," in which a cash advance is made to a customer in

exchange for the customer's personal check, or in exchange for the customer's authorization to

debit the customer's deposit account, and where the parties agree either that the check will not be

cashed or deposited, or that customer's deposit account will not be debited, until a designated

future date.

      (7) "Loan broker" means any person who, for compensation or gain, or in the expectation

of compensation or gain, either directly or indirectly, solicits, processes, negotiates, places or sells

a loan within this state for others in the primary market, or offers to do so. A loan broker shall

also mean any person who is the nominal mortgagee or creditor in a table funding transaction. A

loan is brokered within this state if any of the following conditions exist:

      (i) The loan is secured by real property located in this state;

      (ii) An application for a loan is taken or received by an employee, agent or representative

of the loan broker within this state;

      (iii) The loan closes within this state;

      (iv) The loan solicitation is done by an individual with a physical presence in this state;

or

      (v) The loan broker maintains an office in this state.

      (8) "Personal money order" means any instrument for the transmission or payment of

money in relation to which the purchaser or remitter appoints or purports to appoint the seller as

his or her agent for the receipt, transmission, or handling of money, whether the instrument is

signed by the seller or by the purchaser or remitter or some other person;

      (9) "Primary market" means the market in which loans are made to borrowers by lenders,

whether or not through a loan broker or other conduit;

      (10) "Principal owner" means any person who owns, controls, votes or has a beneficial

interest in, directly or indirectly, ten percent (10%) or more of the outstanding capital stock

and/or equity interest of a licensee;

      (11) "Sell" means to sell, to issue, or to deliver a check;

      (12) "Small loan" means a loan of less than five thousand dollars ($5,000), not secured

by real estate, made pursuant to the provisions of chapter 14.2 of this title;

      (13) "Small loan lender" means a lender engaged in the business of making small loans

within this state;

      (14) "Table funding transaction" means a transaction in which there is a

contemporaneous advance of funds by a lender and an assignment by the mortgagee or creditor of

the loan to the lender;

      (15) "Check casher" means a person or entity that, for compensation, engages, in whole

or in part, in the business of cashing checks;

      (16) "Deferred deposit transaction" means any transaction such as those commonly

known as "pay-day loans," "pay-day advances," or "deferred presentment loans" in which a cash

advance is made to a customer in exchange for the customer's personal check or in exchange for

the customer's authorization to debit the customer's deposit account and where the parties agree

either that the check will not be cashed or deposited, or that the customer's deposit account will

not be debited until a designated future date;

      (17) "Insurance premium finance agreement" means an agreement by which an insured,

or prospective insured, promises to pay to an insurance premium finance company the amount

advanced or to be advanced, under the agreement to an insurer or to an insurance producer, in

payment of a premium or premiums on an insurance contract or contracts, together with interest

and a service charge, as authorized and limited by this title;

      (18) "Insurance premium finance company" means a person engaged in the business of

making insurance premium finance agreements or acquiring insurance premium finance

agreements from other insurance premium finance companies;

      (19) "Simple interest" means interest computed on the principal balance outstanding

immediately prior to a payment for the actual number of days between payments made on a loan

over the life of a loan;

      (20) "Nonprofit organization" means a corporation qualifying as a 26 U.S.C. section

501(c)(3) nonprofit organization, in the operation of which no member, director, officer, partner,

employee, agent, or other affiliated person profits financially other than receiving reasonable

salaries if applicable;

      (21) "Mortgage loan originator" has the same meaning set forth in subdivision 19-14.10-

3(6);

      (22) "Mortgage loan" means a loan secured in whole or in part by real property located

in this state;

      (23) "Loan solicitation" shall mean an effectuation, procurement, delivery and offer, and

advertisement of a loan. Loan solicitation also includes providing or accepting loan applications

and assisting persons in completing loan applications and/or advising, conferring, or informing

anyone regarding the benefits, terms and/or conditions of a loan product or service. Loan

solicitation does not include loan processing or loan underwriting as defined in this section. Loan

solicitation does not include telemarketing which is defined for purposes of this section to mean

contacting a person by telephone with the intention of collecting such person's name, address and

telephone number for the sole purpose of allowing a mortgage loan originator to fulfill a loan

inquiry;

      (24) "Processes" shall mean, with respect to a loan, any of a series of acts or functions

including the preparation of a loan application and supporting documents performed by a person

which leads to or results in the acceptance, approval, denial, and/or withdrawal of a loan

application, including, without limitation, the rendering of services including loan underwriting,

obtaining verifications, credit reports or appraisals, communicating with the applicant and/or the

lender or loan broker, and/or other loan processing and origination services for consideration by a

lender or loan broker. Loan processing does not include the following:

      (A)(i) Providing loan closing services;

      (B)(ii) Rendering of credit reports by an authorized credit reporting agency; and

      (C)(iii) Rendering of appraisal services.

      (25) "Loan underwriting" shall mean a loan process that involves the analysis of risk

with respect to the decision whether to make a loan to a loan applicant based on credit,

employment, assets, and other factors including evaluating a loan applicant against a lender's

various lending criteria for creditworthiness, making a determination for the lender as to whether

the applicant meets the lender's pre-established credit standards and/or making a recommendation

regarding loan approval;

      (26) "Negotiates" shall mean, with respect to a loan, to confer directly with or offer

advice directly to a loan applicant or prospective loan applicant for a loan product or service

concerning any of the substantive benefits, terms, or conditions of the loan product or service;

      (27) "Natural person employee" shall mean any natural person performing services as a

bona-fide employee for a person licensed under the provisions of Rhode Island general laws

section 19-14-1, et. seq., in return for a salary, wage, or other consideration, where such salary,

wage, or consideration is reported by the licensee on a federal form W-2 payroll record. The term

does not include any natural person or business entity performing services for a person licensed

under the provisions of Rhode Island general laws in return for a salary, wage, or other

consideration, where such salary, wage, or consideration is reported by the licensee on a federal

form 1099;

      (28) "Bona-fide employee" shall mean an employee of a licensee who works under the

oversight and supervision of the licensee;

      (29) "Oversight and supervision of the licensee" shall mean that the licensee provides

training to the employee, sets the employee's hours of work, and provides the employee with the

equipment and physical premises required to perform the employee's duties;

      (30) "Operating subsidiary" shall mean a majority-owned subsidiary of a financial

institution or banking institution that engages only in activities permitted by the parent financial

institution or banking institution;

      (31) "Provisional employee" means a natural person who, pursuant to a written

agreement between the natural person and a wholly owned subsidiary of a financial holding

company, as defined in The Bank Holding Company Act of 1956, as amended, a bank holding

company, savings bank holding company, or thrift holding company, is an exclusive agent for the

subsidiary with respect to mortgage loan originations, and the subsidiary: (a) holds a valid loan

broker's license and (b) enters into a written agreement with the director or the director's designee

to include:

      (i) An "undertaking of accountability" in a form prescribed by the director or the

director's designee, for all of the subsidiary's exclusive agents to include full and direct financial

and regulatory responsibility for the mortgage loan originator activities of each exclusive agent as

if said exclusive agent was an employee of the subsidiary;

      (ii) A business plan to be approved by the director or the director's designee, for the

education of the exclusive agents, the handling of consumer complaints related to the exclusive

agents, and the supervision of the mortgage loan origination activities of the exclusive agents;

      (iii) A restriction of the exclusive agents' mortgage loan originators' activities to loans to

be made only by the subsidiary's affiliated bank; and

      (32) "Multi-state licensing system" means a system involving one or more states, the

District of Columbia, or the Commonwealth of Puerto Rico established to facilitate the sharing of

regulatory information and the licensing, application, reporting and payment processes, by

electronic or other means, for mortgage lenders and loan brokers, and other licensees required to

be licensed under this chapter.

      (33) "Negative equity" means the difference between the value of an asset and the

outstanding portion of the loan taken out to pay for the asset, when the latter exceeds the former

amount.

      (34) "Loan closing services" means providing title services, including title searches, title

examinations, abstract preparation, insurability determinations, and the issuance of title

commitments and title insurance policies, conducting loan closings, and preparation of loan

closing documents when performed by or under the supervision of a licensed attorney, licensed

title agency, of or licensed title insurance company.

 

     SECTION 3. Section 27-30-11 of the General Laws in Chapter 27-30 entitled "Consumer

Credit Insurance" is hereby amended to read as follows:

 

     27-30-11. Existing insurance -- Choice of insurer. -- When consumer credit insurance

is required as additional security for any indebtedness the debtor shall, upon request to the

creditor, have the option of furnishing the required amount of insurance through existing policies

of insurance owned or controlled by the debtor of procuring and furnishing the required coverage

through any insurer authorized to transact an insurance business within this state.

 

     SECTION 4. Sections 31-5.1-4 and 31-5.1-21 of the General Laws in Chapter 31-5.1

entitled "Regulation of Business Practices Among Motor Vehicle Manufacturers, Distributors,

and Dealers" are hereby amended to read as follows:

 

     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 assent to a release, assignment, novation, waiver, or estoppel in connection with

the transfer or voluntary termination of a franchise, or 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

revenue of this state, if that referral would be binding upon the new motor vehicle dealer.

      (7) To order for any person any parts, accessories, equipment, machinery, tools or any

commodities.

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

other representative:

      (1) To refuse to deliver in reasonable quantities and within a reasonable time after

receipt of the dealer's order, to any motor vehicle dealer having a franchise or contractual

arrangement for the retail sale of new motor vehicles sold or distributed by the manufacturer, any

motor vehicles covered by the franchise or contract, specifically publicly advertised by the

manufacturer to be available for immediate delivery. However, the failure to deliver any motor

vehicle shall not be considered a violation of this chapter if that failure is due to an act of God,

work stoppage or delay due to a strike or labor difficulty, shortage of materials, a freight

embargo, or other cause over which the manufacturer, distributor, or wholesaler, or its agent,

shall have no control.

      (2) To refuse to deliver or otherwise deny to any motor vehicle dealer having a franchise

or contractual arrangement for the retail sale of new motor vehicles sold or distributed by the

manufacturer any particular new motor vehicle model made or distributed by the manufacturer

under the name of the division of the manufacturer of which the dealer is an authorized franchise.

      (3) It shall be deemed a prima facie violation of this chapter for any automotive vehicle

division manufacturer to require any separate franchise or contractual arrangement with any new

motor vehicle dealer already a party to a franchise or contractual arrangement with that

automotive vehicle division for the retail sale of any particular new motor vehicle model made or

distributed by that division.

      (4) To coerce, or attempt to coerce, any motor vehicle dealer to enter into any agreement

with the manufacturer, or their officers, agents, or other representatives, or to do any other act

prejudicial to the dealer, by threatening to cancel any franchise or any contractual agreement

existing between the manufacturer and the dealer. Notice in good faith to any motor vehicle

dealer of the dealer's violation of any terms or provisions of the franchise or contractual

agreement shall not constitute a violation of this chapter.

      (5) To resort to or use any false or misleading advertisement in connection with his or

her business as a manufacturer, an officer, agent, or other representative.

      (6) To sell or lease any new motor vehicle to, or through, any new motor vehicle dealer

at a lower actual price therefore than the actual price offered to any other new motor vehicle

dealer for the same model vehicle similarly equipped or to utilize any device, including, but not

limited to, sales promotion plans or programs, which result in a lesser actual price. The provisions

of this paragraph shall not apply to sales to a new motor vehicle dealer for resale to any unit of

the United States government, or to the state or any of its political subdivisions. A manufacturer

may not reduce the price of a motor vehicle charged to a dealer or provide different financing

terms to a dealer in exchange for the dealer's agreement to:

      (i) Maintain an exclusive sales or service facility;

      (ii) Build or alter a sales or service facility; or

      (iii) Participate in a floor plan or other financing.

      (7) To sell or lease any new motor vehicle to any person, except a manufacturer's

employee, at a lower actual price than the actual price offered and charged to a new motor vehicle

dealer for the same model vehicle similarly equipped or to utilize any device which results in a

lesser actual price. The provisions of this paragraph shall not apply to sales to a new motor

vehicle dealer for resale to any unit of the United States government, or to the state or any of its

political subdivisions.

      (8) To offer in connection with the sale of any new motor vehicle or vehicles directly or

indirectly to a fleet purchaser within or without this state terms, discounts, refunds, or other

similar types of inducements to that purchaser without making the same offer or offers available

to all of its new motor vehicles dealers in this state. No manufacturer may impose or enforce any

restrictions against new motor vehicle dealers in this state or their leasing, rental, or fleet

divisions or subsidiaries that are not imposed or enforced against any other direct or indirect

purchaser from the manufacturer. The provisions of this paragraph shall not apply to sales to a

new motor vehicle dealer for resale to any unit of the United States government, or to the state or

any of its political subdivisions.

      (9) To use or consider the performance of a motor vehicle dealer relating to the sale of

the manufacturer's vehicles or the motor vehicle dealer's ability to satisfy any minimum sales or

market share quota or responsibility relating to the sale of the manufacturer's new vehicles in

determining:

      (i) The motor vehicle dealer's eligibility to purchase program, certified, or other used

motor vehicles from the manufacturer;

      (ii) The volume, type, or model of program, certified, or other used motor vehicles that a

motor vehicle dealer is eligible to purchase from the manufacturer;

      (iii) The price of any program, certified, or other used motor vehicle that the dealer is

eligible to purchase from the manufacturer; or

      (iv) The availability or amount of any discount, credit, rebate, or sales incentive that the

dealer is eligible to receive from the manufacturer for the purchase of any program, certified, or

other used motor vehicle offered for sale by the manufacturer.

      (10) To offer to sell or to sell parts or accessories to any new motor vehicle dealer for

use in the dealer's own business for the purpose of repairing or replacing the same parts or

accessories or a comparable part or accessory, at a lower actual price than the actual price

charged to any other new motor vehicle dealer for similar parts or accessories to use in the

dealer's own business. In those cases where new motor vehicle dealers operate or serve as

wholesalers of parts and accessories to retail outlets, these provision shall be construed to prevent

a manufacturer, or their agents, from selling to a new motor vehicle dealer who operates and

services as a wholesaler of parts and accessories, any parts and accessories that may be ordered

by that new motor vehicle dealer for resale to retail outlets, at a lower actual price than the actual

price charged a new motor vehicle dealer who does not operate or serve as a wholesaler of parts

and accessories.

      (11) To prevent or attempt to prevent by contract or otherwise any new motor vehicle

dealer from changing the capital structure of his or her dealership or the means by which or

through which the dealer finances the operation of his or her dealership. However, the new motor

vehicle dealer shall at all times meet any reasonable capital standards agreed to between the

dealership and the manufacturer, provided that any change in the capital structure by the new

motor vehicle dealer does not result in a change in the executive management control of the

dealership.

      (12) To prevent or attempt to prevent by contract or otherwise any new motor vehicle

dealer or any officer, partner, or stockholder of any new motor vehicle dealer from selling or

transferring any part of the interest of any of them to any other person or persons or party or

parties. Provided, however, that no dealer, officer, partner, or stockholder shall have the right to

sell, transfer or assign the franchise or power of management or control without the consent of the

manufacturer, except that the consent shall not be unreasonably withheld.

      (13) To obtain money, goods, services, anything of value, or any other benefit from any

other person with whom the new motor vehicle dealer does business, on account of or in relation

to the transactions between the dealer and that other person, unless that benefit is promptly

accounted for and transmitted to the new motor vehicle dealer.

      (14) To compete with a new motor vehicle dealer operating under an agreement or

franchise from the manufacturer in the state of Rhode Island, through the ownership, operation, or

control of any new motor vehicle dealers in this state or by participation in the ownership,

operation, or control of any new motor vehicle dealer in this state. A manufacturer shall not be

deemed to be competing when operating, controlling, or owning a dealership either temporarily

for a reasonable period in any case not to exceed one year, which one year period may be

extended for a one-time additional period of up to six (6) months upon application to and

approval by the motor vehicle dealers license and hearing board, which approval shall be subject

to the manufacturer demonstrating the need for this extension, and with other new motor vehicle

dealers of the same line making being given notice and an opportunity to be heard in connection

with said application, or in a bona fide relationship in which an independent person had made a

significant investment subject to loss in the dealership and can reasonably expect to acquire full

ownership of the dealership on reasonable terms and conditions within a reasonable period of

time.

      (15) To refuse to disclose to any new motor vehicle dealer, handling the same line or

make, the manner and mode of distribution of that line or make within the relevant market area.

      (16) To increase prices of new motor vehicles which the new motor vehicle dealer had

ordered for private retail consumers prior to the new motor vehicle dealer's receipt of the written

official price increase notification. A sales contract signed by a private retail consumer shall

constitute evidence of an order provided that the vehicle is in fact delivered to that customer. In

the event of manufacturer price reductions or cash rebates paid to the new motor vehicle dealer,

the amount of any reduction or rebate received by a new motor vehicle dealer shall be passed on

to the private retail consumer by the new motor vehicle dealer. Price reductions shall apply to all

vehicles in the dealer's inventory which were subject to the price reduction. Price differences

applicable to new model or series motor vehicles at the time of the introduction of new models or

series shall not be considered a price increase or price decrease. Price changes caused by either:

(i) the addition to a motor vehicle of required or optional equipment; (ii) revaluation of the United

States dollar, in the case of foreign-make vehicles or components; or (iii) an increase in

transportation charges due to increased rates imposed by common carriers, shall not be subject to

the provisions of this subdivision.

      (17) To release to any outside party, except under subpoena or as otherwise required by

law or in an administrative, judicial, or arbitration proceeding involving the manufacturer or new

motor vehicle dealer, any business, financial, or personal information which may be from time to

time provided by the new motor vehicle dealer to the manufacturer, without the express written

consent of the new motor vehicle dealer.

      (18) To unfairly discriminate among its new motor vehicle dealers with respect to

warranty reimbursement, or any program that provides assistance to its dealers, including Internet

listings; sales leads; warranty policy adjustments; marketing programs; and dealer recognition

programs.

      (19) To unreasonably withhold consent to the sale, transfer, or exchange of the franchise

to a qualified buyer capable of being licensed as a new motor vehicle dealer in this state.

      (20) To fail to respond in writing to a request for consent as specified in subdivision (19)

of this subsection within sixty (60) days of the receipt of a written request on the forms, if any,

generally utilized by the manufacturer or distributor for those purposes and containing the

information required therein. The failure to respond shall be deemed to be a consent to the

request. A manufacturer may not impose a condition on the approval of a sale, transfer, or

exchange of the franchise if the condition would violate the provisions of this chapter if imposed

on an existing dealer.

      (21) To unfairly prevent a new motor vehicle dealer from receiving fair and reasonable

compensation for the value of the new motor vehicle dealership.

      (22) To require that a new motor vehicle dealer execute a written franchise agreement

that does not contain substantially the same provisions as the franchise agreement being offered

to other new motor vehicle dealers handling the same line or make. In no instance shall the term

of any franchise agreement be of a duration of less than three (3) years.

      (23) To require that a new motor vehicle dealer provide exclusive facilities, personnel, or

display space taking into consideration changing market conditions, or that a dealer execute a site

control agreement giving a manufacturer control over the dealer's facilities.

      (24) To require that a dealer expand facilities without a guarantee of a sufficient supply

of new motor vehicles to justify that expansion or to require that a dealer expand facilities to a

greater degree than is necessary to sell and service the number of vehicles that the dealer sold and

serviced in the most recent calendar year.

      (25) To prevent a dealer from adjusting his or her facilities to permit a relocation of

office space, showroom space, and service facilities so long as the relocation is within five

hundred (500) yards of the present location.

      (26) To engage in any predatory practice against a new motor vehicle dealer.

      (d) It shall be a violation of this chapter for a manufacturer to terminate, cancel, or fail to

renew the franchise of a new motor vehicle dealer except as provided in this subsection:

      (1) Notwithstanding the terms, provisions, or conditions of any franchise, whether

entered into before or after the enactment of this chapter or any of its provisions, or

notwithstanding the terms or provisions of any waiver, whether entered into before or after the

enactment of this chapter or any of its provisions, no manufacturer shall cancel, terminate, or fail

to renew any franchise with a licensed new motor vehicle dealer unless the manufacturer has:

      (i) Satisfied the notice requirement of this subsection;

      (ii) Has good cause for the cancellation, termination, or nonrenewal;

      (iii) Has not committed any violations set forth in subsection (b) of this section; and

      (iv) Has acted in good faith as defined in this chapter and has complied with all

provisions of this chapter.

      (2) Notwithstanding the terms, provisions, or conditions of any franchise or the terms or

provisions of any waiver, good cause shall exist for the purposes of a termination, cancellation, or

nonrenewal when:

      (i) There is a failure by the new motor vehicle dealer to comply with a provision of the

franchise which provision is both reasonable and of material significance to the franchise

relationship, provided that the dealer has been notified in writing of the failure within one

hundred eighty (180) days after the manufacturer first acquired knowledge of that failure;

      (ii) If the failure by the new motor vehicle dealer, as provided in paragraph (i) of this

subdivision, relates to the performance of the new motor vehicle dealer in sales or service, then

good cause shall be defined as the failure of the new motor vehicle dealer to comply with

reasonable performance criteria established by the manufacturer if the new motor vehicle dealer

was apprised by the manufacturer in writing of that failure; and:

      (A) The notification stated that notice was provided of failure of performance pursuant to

paragraph (i) of this subdivision;

      (B) The new motor vehicle dealer was afforded a reasonable opportunity, for a period of

not less than six (6) months, to comply with those criteria; and

      (C) The new motor vehicle dealer did not demonstrate substantial progress towards

compliance with the manufacturer's performance criteria during that period.

      (3) The manufacturer shall have the burden of proof for showing that the notice

requirements have been complied with, that there was good cause for the franchise termination,

cancellation or nonrenewal, and that the manufacturer has acted in good faith.

      (i) Notwithstanding the terms, provisions, or conditions of any franchise, prior to the

termination, cancellation, or nonrenewal of any franchise, the manufacturer shall furnish

notification of the termination, cancellation, or nonrenewal to the new motor vehicle dealer as

follows:

      (A) In the manner described in paragraph (ii) of this subdivision; and

      (B) Not fewer than ninety (90) days prior to the effective date of the termination,

cancellation, or nonrenewal; or

      (C) Not fewer than fifteen (15) days prior to the effective date of the termination,

cancellation, or nonrenewal for any of the following reasons:

      (I) Insolvency of the new motor vehicle dealer, or the filing of any petition by or against

the new motor vehicle dealer under any bankruptcy or receivership law;

      (II) Failure of the new motor vehicle dealer to conduct his customary sales and service

operations during his or her customary business hours for seven (7) consecutive business days;

      (III) Final conviction of the new motor vehicle dealer, or any owner or operator of the

dealership, of a crime which is associated with or related to the operation of the dealership;

      (IV) Revocation of any license which the new motor vehicle dealer is required to have to

operate a dealership; or

      (D) Not fewer than one hundred eighty (180) days prior to the effective date of the

termination or cancellation where the manufacturer or distributor is discontinuing the sale of the

product line.

      (ii) Notification under this subsection shall be in writing, shall be by certified mail or

personally delivered to the new motor vehicle dealer, and shall contain:

      (A) A statement of intention to terminate, cancel, or not to renew the franchise;

      (B) A statement of the reasons for the termination, cancellation, or nonrenewal; and

      (C) The date on which the termination, cancellation, or nonrenewal shall take effect.

      (iii) Upon the involuntary or voluntary termination, nonrenewal, or cancellation of any

franchise, by either the manufacturer or the new motor vehicle dealer, notwithstanding the terms

of any franchise whether entered into before or after the enactment of this chapter or any of its

provisions, the new motor vehicle dealer shall be allowed fair and reasonable compensation by

the manufacturer for the following:

      (A) The new motor vehicle dealer's cost, less allowances paid by the manufacturer, of

each new, undamaged, unsold and unaltered, except for dealer installed manufacturer-authorized

accessories, motor vehicle, regardless of model year purchased from the manufacturer or another

dealer of the same line-make in the ordinary course of business within twenty-four (24) months of

termination, having five hundred (500) or fewer miles recorded on the odometer that is in the new

motor vehicle dealer's inventory at the time of termination, nonrenewal, or cancellation.

      (B) The new motor vehicle dealer's cost of each new, unused, undamaged, and unsold

part or accessory that is in the current parts catalogue or is identical to a part or accessory in the

current parts catalogue except for the number assigned to the part or accessory due to a change in

the number after the purchase of the part or accessory, and that is still in the original, resalable

merchandising package and in an unbroken lot, except that, in the case of sheet metal, a

comparable substitute for the original package may be used.

      (C) The fair market value of each undamaged sign, normal wear and tear excepted,

owned by the dealer that bears a trademark or trade name used or claimed by the manufacturer

that were purchased as a requirement of the manufacturer.

      (D) The fair market value of all special tools, and automotive services equipment owned

by the dealer that: (I) Were recommended in writing and designated as special tools and

equipment; (II) Were purchased as a requirement of the manufacturer; and (III) Are in usable and

good condition except for reasonable wear and tear.

      (E) The cost of transporting, handling, packing, storing, and loading any property that is

subject to repurchase under this section.

      (F) The payments above are due within sixty (60) days from the date the dealer submits

an accounting to the manufacturer of the vehicle inventory subject to repurchase, and for other

items within sixty (60) days from the date the dealer submits an accounting of the other items

subject to repurchase, provided, the new motor vehicle dealer has clear title (or will have clear

title upon using the repurchase funds to obtain clear title) to the inventory and other items and is

in a position to convey that title to the manufacturer. If the inventory or other items are subject to

a security interest, the manufacturer, wholesaler, or franchisor may make payment jointly to the

dealer and the holder of the security interest. In no event shall the payments be made later than

ninety (90) days of the effective date of the termination, cancellation, or nonrenewal.

      (iv) In the event the termination, cancellation or nonrenewal is involuntary and not

pursuant to subsection (3)(i)(C) of this section, and:

      (A) The new motor vehicle dealer is leasing the dealership facilities from a lessor other

than the manufacturer, the manufacturer shall pay the new motor vehicle dealer a sum equivalent

to the rent for the unexpired term of the lease or (2) two year's rent, whichever is less; or

      (B) If the new motor vehicle dealer owns the facilities, the manufacturer shall pay the

new motor vehicle dealer a sum equivalent to the reasonable rental value of the facilities for two

(2) years; if:

      (I) The new motor vehicle dealer is unable to reasonably utilize the facilities for another

purpose;

      (II) The new motor vehicle dealer, or the manufacturer acting as its agent, is unable to

make arrangements for the cancellation or assumption of its lease obligations by another party in

the case of leased facilities, or is unable to sell dealer owned facilities, and

      (III) Only to the extent those facilities were required as a condition of the franchise and

used to conduct sales and service operations related to the franchise product.

      (v) In addition to any injunctive relief and any other damages allowable by this chapter,

if the manufacturer is discontinuing the product line or fails to prove that there was good cause

for the termination, cancellation, or nonrenewal or if the manufacturer fails to prove that the

manufacturer acted in good faith, then the manufacturer shall pay the new motor vehicle dealer

fair and reasonable compensation for the value of the dealership as an ongoing business.

      In addition to the other compensation described in paragraphs (iii) and (iv) above and in

this section, the manufacturer shall also reimburse the dealer for any costs incurred for facility

upgrades or alterations required by the manufacturer within two (2) years of the effective date of

the termination.

      (vi) If a manufacturer is discontinuing the product line and thus as a result a franchise for

the sale of motor vehicles is subject to termination, cancellation, or nonrenewal, the manufacturer

shall:

      (A) Authorize the dealer at the dealer's option, that remains a franchised dealer of the

manufacturer regardless of the discontinuation of a product line, to continue servicing and

supplying parts (without prejudice to the right of the manufacturer to also authorize other

franchised dealers to provide service and parts for a discontinued produce product line), including

services and parts pursuant to a warranty issued by the manufacturer for any goods or services

marketed by the dealer pursuant to the motor vehicle franchise for a period of not less than five

(5) years from the effective date of the termination, cancellation, or nonrenewal;

      (B) Continue to reimburse the dealer that remains a franchised dealer of the

manufacturer regardless of the discontinuation of a product line or another franchised dealer of

the manufacturer in the area for warranty parts and service in an amount and on terms not less

favorable than those in effect prior to the termination, cancellation, or nonrenewal;

      (C) The manufacturer shall continue to supply the dealer that remains a franchised dealer

of the manufacturer regardless of the discontinuation of a product line or another franchised

dealer of the manufacturer in the area with replacement parts for any goods or services marketed

by the dealer pursuant to the franchise agreement for a period of not less than five (5) years from

the effective date of the termination, cancellation, or nonrenewal, at a price and on terms not less

favorable than those in effect prior to the termination, cancellation, or nonrenewal;

      (vii) The requirement of this section do not apply to a termination, cancellation or

nonrenewal due to the sale of the assets or stock of the motor vehicle dealer.

      (D) To be entitled to facilities assistance from the manufacturer as described above, the

dealer shall have the obligation to mitigate damages by listing the dealership facilities for lease or

sublease with a licensed real estate agent within thirty (30) days after the effective date of the

termination of the franchise and thereafter be reasonably cooperating with such real estate agent

in the performance of the agent's duties and responsibilities. If the dealer is able to lease or

sublease the dealership facilities on terms that are consistent with local zoning requirements to

preserve the right to sell motor vehicles from the dealership facilities and the terms of the dealer's

lease, the dealer shall be obligated to pay the manufacturer the net revenue received from such

mitigation, but only following receipt of facilities assistance payments pursuant to this chapter,

and only up to the total amount of facilities assistance payments that the dealer has received.

      (e) It shall be deemed a violation of this chapter for a motor vehicle dealer:

      (1) To require a purchaser of a new motor vehicle, as a condition of the sale and delivery

thereof, to also purchase special features, equipment, parts, or accessories not desired or

requested by the purchaser. This prohibition shall not apply as to special features, equipment,

parts, or accessories which are already installed on the car before sale by the dealer.

      (2) To represent and sell as a new motor vehicle any motor vehicle which is a used motor

vehicle.

      (3) To resort to or use any false or misleading advertisement in connection with his or

her business as a motor vehicle dealer.

      (4) To engage in any deception or fraudulent practice in the repair of motor vehicles.

 

     31-5.1-21. Promotional activities. -- (a) Upon filing of a claim, a manufacturer or

distributor shall compensate a dealer for any incentive or reimbursement program sponsored by

the manufacturer or distributor, under the terms of which the dealer is eligible for compensation.

      (b) (1) A claim filed under this section shall be:

      (i) In the manner and form prescribed by the manufacturer, factory branch, or distributor;

and

      (ii) Approved or disapproved within thirty (30) days of receipt.

      (2) A claim not approved or disapproved within thirty (30) days of receipt shall be

deemed approved.

      (3) Payment of a claim filed under this section shall be made within thirty (30) days of

approval.

      (c) (1) If a claim filed under this section is shown by the manufacturer or distributor to

be false or unsubstantiated, the manufacturer or distributor may charge back the claim within one

year from the date the claim was paid or credit issued or one year from the end of a manufacturer

program that does not exceed one year in length, whichever is later.

      (2) This paragraph does not limit the right of a manufacturer or distributor to charge back

for any claim that is proven fraudulent.

 

     SECTION 5. Section 40-8.9-6 of the General Laws in Chapter 40-8.9 entitled "Medical

Assistance - Long-Term Care Service and Finance Reform" is hereby amended to read as

follows:

 

     40-8.9-6. Reporting. -- Annual reports showing progress in long-term care system

reform and rebalancing shall be submitted by April 1st of each year by the department to the Joint

Legislative Committee on Health Care Oversight as well as the finance committees of both the

senate and the house of representatives and shall include: the number of persons aged sixty-five

(65) years and over and adults with disabilities served in nursing facilities, the number of persons

transitioned from nursing homes to Medicaid supported home and community based care, the

number of persons aged sixty-five (65) years and over and adults with disabilities served in home

and community care to include home care, adult day services, assisted living and shared living,

the dollar amounts and percent of expenditures spent on nursing facility care and home and

community-based care, and estimates of the continued investments necessary to provide stability

to the existing system and establish the infrastructure and programs required to achieve system-

wide reform and the targeted goal of spending fifty percent (50%) of Medicaid long-term care

dollars on nursing facility care and fifty percent (50%) on home and community-based services.

 

     SECTION 6. Section 42-14.5-3 of the General Laws in Chapter 42-14.5 entitled "The

Rhode Island Health Care Reform Act of 2004 - Health Insurance Oversight" is hereby amended

to read as follows:

 

     42-14.5-3. Powers and duties. [Contingent effective date; see notes under section 42-

14.5-1] -- Powers and duties. [Contingent effective date; see effective dates under this

section.] --The health insurance commissioner shall have the following powers and duties:

      (a) To conduct quarterly public meetings throughout the state, separate and distinct from

rate hearings pursuant to section 42-62-13, regarding the rates, services and operations of insurers

licensed to provide health insurance in the state the effects of such rates, services and operations

on consumers, medical care providers, patients, and the market environment in which such

insurers operate and efforts to bring new health insurers into the Rhode Island market. Notice of

not less than ten (10) days of said hearing(s) shall go to the general assembly, the governor, the

Rhode Island Medical Society, the Hospital Association of Rhode Island, the director of health,

the attorney general and the chambers of commerce. Public notice shall be posted on the

department's web site and given in the newspaper of general circulation, and to any entity in

writing requesting notice.

      (b) To make recommendations to the governor and the house of representatives and

senate finance committees regarding health care insurance and the regulations, rates, services,

administrative expenses, reserve requirements, and operations of insurers providing health

insurance in the state, and to prepare or comment on, upon the request of the governor, or

chairpersons of the house or senate finance committees, draft legislation to improve the regulation

of health insurance. In making such recommendations, the commissioner shall recognize that it is

the intent of the legislature that the maximum disclosure be provided regarding the

reasonableness of individual administrative expenditures as well as total administrative costs. The

commissioner shall also make recommendations on the levels of reserves including consideration

of: targeted reserve levels; trends in the increase or decrease of reserve levels; and insurer plans

for distributing excess reserves.

      (c) To establish a consumer/business/labor/medical advisory council to obtain

information and present concerns of consumers, business and medical providers affected by

health insurance decisions. The council shall develop proposals to allow the market for small

business health insurance to be affordable and fairer. The council shall be involved in the

planning and conduct of the quarterly public meetings in accordance with subsection (a) above.

The advisory council shall develop measures to inform small businesses of an insurance

complaint process to ensure that small businesses that experience rate increases in a given year

may request and receive a formal review by the department. The advisory council shall assess

views of the health provider community relative to insurance rates of reimbursement, billing and

reimbursement procedures, and the insurers' role in promoting efficient and high quality health

care. The advisory council shall issue an annual report of findings and recommendations to the

governor and the general assembly and present their findings at hearings before the house and

senate finance committees. The advisory council is to be diverse in interests and shall include

representatives of community consumer organizations; small businesses, other than those

involved in the sale of insurance products; and hospital, medical, and other health provider

organizations. Such representatives shall be nominated by their respective organizations. The

advisory council shall be co-chaired by the health insurance commissioner and a community

consumer organization or small business member to be elected by the full advisory council.

      (d) To establish and provide guidance and assistance to a subcommittee ("The

Professional Provider-Health Plan Work Group") of the advisory council created pursuant to

subsection (c) above, composed of health care providers and Rhode Island licensed health plans.

This subcommittee shall include in its annual report and presentation before the house and senate

finance committees the following information:

      (i) A method whereby health plans shall disclose to contracted providers the fee

schedules used to provide payment to those providers for services rendered to covered patients;

      (ii) A standardized provider application and credentials verification process, for the

purpose of verifying professional qualifications of participating health care providers;

      (iii) The uniform health plan claim form utilized by participating providers;

      (iv) Methods for health maintenance organizations as defined by section 27-41-1, and

nonprofit hospital or medical service corporations as defined by chapters 27-19 and 27-20, to

make facility-specific data and other medical service-specific data available in reasonably

consistent formats to patients regarding quality and costs. This information would help consumers

make informed choices regarding the facilities and/or clinicians or physician practices at which to

seek care. Among the items considered would be the unique health services and other public

goods provided by facilities and/or clinicians or physician practices in establishing the most

appropriate cost comparisons.

      (v) All activities related to contractual disclosure to participating providers of the

mechanisms for resolving health plan/provider disputes; and

      (vi) The uniform process being utilized for confirming in real time patient insurance

enrollment status, benefits coverage, including co-pays and deductibles.

      (vii) Information related to temporary credentialing of providers seeking to participate in

the plan's network and the impact of said activity on health plan accreditation;

      (viii) The feasibility of regular contract renegotiations between plans and the providers

in their networks.

      (ix) Efforts conducted related to reviewing impact of silent PPOs on physician practices.

      (e) To enforce the provisions of Title 27 and Title 42 as set forth in section 42-14-5(d).

      (f) To provide analysis of the Rhode Island Affordable Health Plan Reinsurance Fund.

The fund shall be used to effectuate the provisions of sections 27-18.5-8 and 27-50-17.

      (g) To analyze the impact of changing the rating guidelines and/or merging the

individual health insurance market as defined in chapter 27-18.5 and the small employer health

insurance market as defined in chapter 27-50 in accordance with the following:

      (i) The analysis shall forecast the likely rate increases required to effect the changes

recommended pursuant to the preceding subsection (g) in the direct pay market and small

employer health insurance market over the next five (5) years, based on the current rating

structure, and current products.

      (ii) The analysis shall include examining the impact of merging the individual and small

employer markets on premiums charged to individuals and small employer groups.

      (iii) The analysis shall include examining the impact on rates in each of the individual

and small employer health insurance markets and the number of insureds in the context of

possible changes to the rating guidelines used for small employer groups, including: community

rating principles; expanding small employer rate bonds beyond the current range; increasing the

employer group size in the small group market; and/or adding rating factors for broker and/or

tobacco use.

      (iv) The analysis shall include examining the adequacy of current statutory and

regulatory oversight of the rating process and factors employed by the participants in the

proposed new merged market.

      (v) The analysis shall include assessment of possible reinsurance mechanisms and/or

federal high-risk pool structures and funding to support the health insurance market in Rhode

Island by reducing the risk of adverse selection and the incremental insurance premiums charged

for this risk, and/or by making health insurance affordable for a selected at-risk population.

      (vi) The health insurance commissioner shall work with an insurance market merger task

force to assist with the analysis. The task force shall be chaired by the health insurance

commissioner and shall include, but not be limited to, representatives of the general assembly, the

business community, small employer carriers as defined in section 27-50-3, carriers offering

coverage in the individual market in Rhode Island, health insurance brokers and members of the

general public.

      (vii) For the purposes of conducting this analysis, the commissioner may contract with

an outside organization with expertise in fiscal analysis of the private insurance market. In

conducting its study, the organization shall, to the extent possible, obtain and use actual health

plan data. Said data shall be subject to state and federal laws and regulations governing

confidentiality of health care and proprietary information.

      (viii) The task force shall meet as necessary and include their findings in the annual

report and the commissioner shall include the information in the annual presentation before the

house and senate finance committees.

 

     SECTION 7. Section 42-64-20 of the General Laws in Chapter 42-64 entitled "Rhode

Island Economic Development Corporation" is hereby amended to read as follows:

 

     42-64-20. Exemption from taxation. -- (a) The exercise of the powers granted by this

chapter will be in all respects for the benefit of the people of this state, the increase of their

commerce, welfare, and prosperity and for the improvement of their health and living conditions

and will constitute the performance of an essential governmental function and the corporation

shall not be required to pay any taxes or assessments upon or in respect of any project or of any

property or moneys of the Rhode Island economic development corporation, levied by any

municipality or political subdivision of the state; provided, that the corporation shall make

payments in lieu of real property taxes and assessments to municipalities and political

subdivisions with respect to projects of the corporation located in the municipalities and political

subdivisions during those times that the corporation derives revenue from the lease or operation

of the projects. Payments in lieu of taxes shall be in amounts agreed upon by the corporation and

the affected municipalities and political subdivisions. Failing the agreement, the amounts of

payments in lieu of taxes shall be determined by the corporation using a formula that shall

reasonably ensure that the amounts approximate the average amount of real property taxes due

throughout the state with respect to facilities of a similar nature and size. Any municipality or

political subdivision is empowered to accept at its option an amount of payments in lieu of taxes

less than that determined by the corporation. If, pursuant to section 42-64-13(f), the corporation

shall have agreed with a municipality or political subdivision that it shall not provide all of the

specified services, the payments in lieu of taxes shall be reduced by the cost incurred by the

corporation or any other person in providing the services not provided by the municipality or

political subdivision.

      (b) The corporation shall not be required to pay state taxes of any kind, and the

corporation, its projects, property, and moneys and, except for estate, inheritance, and gift taxes,

any bonds or notes issued under the provisions of this chapter and the income (including gain

from sale or exchange) from these shall at all times be free from taxation of every kind by the

state and by the municipalities and all political subdivisions of the state. The corporation shall not

be required to pay any transfer tax of any kind on account of instruments recorded by it or on its

behalf.

      (c) For purposes of the exemption from taxes and assessments upon or in respect of any

project under subsections (a) or (b) of this section, the corporation shall not be required to hold

legal title to any real or personal property, including any fixtures, furnishings or equipment which

are acquired and used in the construction and development of the project, but the legal title may

be held in the name of a lessee (including sublessees) from the corporation. This property, which

shall not include any goods or inventory used in the project after completion of construction, shall

be exempt from taxation to the same extent as if legal title of the property were in the name of the

corporation; provided that the board of directors of the corporation adopts a resolution confirming

use of the tax exemption for the project by the lessee. Such resolution shall not take effect until

thirty (30) days from passage. The resolution shall include findings that: (1) the project is a

project of the corporation under section 42-64-3(20), and (2) it is in the interest of the corporation

and of the project that legal title be held by the lessee from the corporation. In adopting the

resolution, the board of directors may consider any factors it deems relevant to the interests of the

corporation or the project including, for example, but without limitation, reduction in potential

liability or costs to the corporation or designation of the project as a "Project of Critical Economic

Concern" pursuant to Chapter 117 of this title.

      (d) For purposes of the exemption from taxes and assessments for any project of the

corporation held by a lessee of the corporation under subsection (c) of this section, any such

project shall be subject to the following additional requirements:

      (1) The total sales tax exemption benefit to the lessee will be implemented through a

reimbursement process as determined by the division of taxation rather than an up-front purchase

exemption;

      (2) The sales tax benefits granted pursuant to RIGL 42-64-20(c) shall: (i) only apply to

materials used in the construction, reconstruction or rehabilitation of the project and to the

acquisition of furniture, fixtures and equipment, except automobiles, trucks or other motor

vehicles, or materials that otherwise are depreciable and have a useful life of one year or more,

for the project for a period not to exceed six (6) months after receipt of a certificate of occupancy

for any given phase of the project for which sales tax benefits are utilized; and (ii) not exceed an

amount equal to the income tax revenue received by the state from the new full-time jobs with

benefits excluding project construction jobs, generated by the project within a period of three (3)

years from after the receipt of a certificate of occupancy for any given phase of the project. "Full-

time jobs with benefits" means jobs that require working a minimum of thirty (30) hours per

week within the state, with a median wage that exceeds by five percent (5%) the median annual

wage for the preceding year for full-time jobs in Rhode Island, as certified by the department of

labor and training with a benefit package that is typical of companies within the lessee's industry.

      (3) The corporation shall transmit the analysis required by RIGL 42-64-10(a)(2) to the

house and senate fiscal committee chairs, the department of labor and training and the division of

taxation promptly upon completion. Annually thereafter, the department of labor and training

shall certify to the house and senate fiscal committee chairs, the house and senate fiscal advisors,

the corporation and the division of taxation the actual number of new full-time jobs with benefits

created by the project, in addition to construction jobs, and whether such new jobs are on target to

meet or exceed the estimated number of new jobs identified in the analysis above. This

certification shall no longer be required when the total amount of new income tax revenue

received by the state exceeds the amount of the sales tax exemption benefit granted above. For

purposes of this section.

      (4) The department of labor and training shall certify to the house and senate fiscal

committee chairs and the division of taxation that jobs created by the project are "new jobs" in the

state of Rhode Island, meaning that the employees of the project are in addition to, and without a

reduction of, those employees of the lessee currently employed in Rhode Island, are not relocated

from another facility of the lessee's in Rhode Island or are employees assumed by the lessee as

the result of a merger or acquisition of a company already located in Rhode Island. Additionally,

the corporation, with the assistance of the lessee, the department of labor and training, the

department of human services and the division of taxation shall provide annually an analysis of

whether any of the employees of the project qualify for RIte Care or RIte Share benefits and the

impact such benefits or assistance may have on the state budget.

      (5) Notwithstanding any other provision of law, the division of taxation, the department

of labor and training and the department of human services are authorized to present, review and

discuss lessee specific tax or employment information or data with the corporation, the house and

senate fiscal committee chairs, and/or the house and senate fiscal advisors for the purpose of

verification and compliance with this resolution; and

      (6) The corporation and the project lessee shall agree that, if at any time prior to the state

recouping the amount of the sales tax exemption through new income tax collections from the

project, not including construction job income taxes, the lessee will be unable to continue the

project, or otherwise defaults on its obligations to the corporation, the lessee shall be liable to the

state for all the sales tax benefits granted to the project plus interest, as determined in RIGL 44-1-

7, calculated from the date the lessee received the sales tax benefits.

 

     SECTION 8. Section 44-17-1 of the General Laws in Chapter 44-17 entitled "Taxation of

Insurance Companies" is hereby amended to read as follows:

 

     44-17-1. Companies required to file -- Payment of tax -- Retaliatory rates. -- (a)

Every domestic, foreign, or alien insurance company, mutual association, organization, or other

insurer, including any health maintenance organization, as defined in section 27-41-1, any

nonprofit dental service corporation as defined in section 27-20.1-2 and any nonprofit hospital or

medical service corporation, as defined in chapters 27-19 and 27-20, except companies mentioned

in section 44-17-6, and organizations defined in section 27-25-1, transacting business in this state,

shall, on or before March 1 in each year, file with the tax administrator, in the form that he or she

may prescribe, a return under oath or affirmation signed by a duly authorized officer or agent of

the company, containing information that may be deemed necessary for the determination of the

tax imposed by this chapter, and shall at the same time pay an annual tax to the tax administrator

of two percent (2%) of the gross premiums on contracts of insurance, except: for Ocean ocean

marine insurance, as referred to in section 44-17-6, covering property and risks within the state,

written during the calendar year ending December 31st next preceding, but in the case of foreign

or alien companies, except as provided in section 27-2-17(d) the tax is not less in amount than is

imposed by the laws of the state or country under which the companies are organized upon like

companies incorporated in this state or upon its agents, if doing business to the same extent in the

state or country.

 

     SECTION 9. Section 45-19-6 of the General Laws in Chapter 45-19 entitled "Relief of

Injured and Deceased Fire Fighters and Police Officers" is hereby amended to read as follows:

 

     45-19-6. Compensation of fund members. -- Members of the commission board shall

not be compensated for their service on the commission board.

 

     SECTION 10. Section 45-39.1-5 of the General Laws in Chapter 45-39.1 entitled

"Municipal Water Supplies" is hereby amended to read as follows:

 

     45-39.1-5. Rates. -- (a) Adequacy. The rates of municipal water supplies shall be

adequate to pay for all costs associated with the municipal water supply including, but not limited

to, the costs of acquisition, treatment, transmission, distribution, and availability of water, and of

system administration and overhead, including metering and billing, programs for the

conservation and efficient use of water, including costs of developing, implementing, enforcing

and evaluating such conservation programs and including conservation pricing as described in

subsection (d), and the cost and/or value of any services or facilities provided by the city or town

to the municipal water supply, testing, operation, maintenance, replacement, repair, debt service,

and for sufficient operating reserves, revenue stabilization funds, debt service reserves and capital

improvement/infrastructure replacement funds to implement water supply system management

plans;

      (b) Equitability. Except for service charges and other fixed fees and charges, rates:

      (1) Shall be based on metered usage and fairly set among and within the classes and/or

types of users;

      (2) Shall provide that within any class of users the full costs of system capacity,

administration, operation, and water supply costs for peak and/or seasonal use is borne by the

users that contribute to such peak and/or seasonal use;

      (3) May provide a basic residential use rate for water use that is designed to make a basic

level of water use affordable, and

      (4) May require implementation of demand management practices, consistent with the

standards and guidelines of the water resources board, established pursuant to subsection 46-

15.8(a) chapter 46-15.8, by wholesale and retail customers;

      (c) Revenue stabilization. Municipal water suppliers shall in the absence of other

sufficient funds available for similar purposes, establish as part of their next rate adjustment a

revenue stabilization account to provide for adequacy during periods when revenues decline as a

result of implementing water conservation programs, or due to circumstances beyond the

reasonable control of the water supplier, including, but not limited to, the weather and drought. A

revenue stabilization account shall accumulate a maximum of ten percent (10%) of the annual

operating expenses of the supplier and shall be used to supplement other revenues so that the

supplier's reasonable costs are compensated;

      (d) Conservation. Municipal water suppliers shall take effective action to reduce waste of

water and to reduce non-agricultural seasonal increases in the use of water, and may adopt

conservation pricing as part of a demand management program or otherwise revise their rates as a

means to achieve their goals. For the purpose of encouraging conservation of water, suppliers are

authorized to adopt increased rates based on quantity used either throughout the year or

seasonally. Conservation pricing shall be designed to promote efficient water use, and to limit

seasonal non-agricultural outdoor water use, and to the extent possible shall not increase prices

for water users with no significant seasonal increase in water use. Revenues generated from the

adoption of conservation rates shall be used to fund the revenue stabilization account established

pursuant to subsection (c) above, operating reserves, debt service reserves or capital

improvement/infrastructure replacement funds; and

      (e) Billing. Billing shall be, at a minimum, quarterly by December 31, 2013.

 

     SECTION 11. Section 17-20-5 of the General Laws in Chapter 17-20 entitled "Mail

Ballots" is hereby amended to read as follows:

 

     17-20-5. Residence of person in service or employed outside of the United States. --

The "residence", as defined in section 17-1-3.1, of any person immediately prior to the

commencement of that person's active service as a member of the armed forces or of the

merchant marine of the United States, or immediately prior to his or her absence from the state in

the performance of "services intimately connected with military operations" as defined in section

17-20-3(c) 17-20-3(d), or immediately prior to his or her employment outside of the United States

as defined in section 17-20-3(e) 17-20-3(c), shall, for the purposes of this chapter, continue to be

that person's residence during the time of his or her service and for a period of two (2) years

thereafter, unless the person changes his or her residence by registering or by taking other

appropriate action to qualify to vote in another city or town within this state or in another state.

 

     SECTION 12. Section 36-10.1-2 of the General Laws in Chapter 36-10.1 entitled "Rhode

Island Public Employee Pension Revocation and Reduction Act" is hereby amended to read as

follows:

 

     36-10.1-2. Definitions. -- (a) "Crime related to public office or public employment" shall

mean any of the following criminal offenses:

      (1) The committing, aiding, or abetting of an embezzlement of public funds;

      (2) The committing, aiding, or abetting of any felonious theft by a public officer or

employee from his or her employer;

      (3) Bribery in connection with employment of a public officer or employee; and

      (4) The committing of any felony by a public officer or employee who, wilfully willfully

and with the intent to defraud, realizes or obtains, or attempts to realize or obtain, a profit, gain,

or advantage for himself or herself or for some other person through the use or attempted use of

the power, rights, privileges, duties, or position of his or her public office or employment

position.

      (b) "Public official" or "public employee" shall mean any current or former state or

municipal elected official as defined in section 36-14-2(10), state or municipal appointed official

as defined in section 36-14-2(4), and any employee of state or local government, of boards,

commissions or agencies as defined in section 36-14-2(8)(i), (ii), who is otherwise entitled to

receive or who is receiving retirement benefits under this title, under title 16, under title 45, under

title 8, under chapter 30 of title 28, under chapter 43 of title 31, or under chapter 28 of title 42,

whether that person is acting on a permanent or temporary basis and whether or not compensated

on a full-time or part-time basis. For the purposes of this chapter, all these persons are deemed to

be engaged in public employment.

      (c) As used in this chapter, the phrase "pleads guilty or nolo contendere" shall not

include any plea of nolo contendere which does not constitute a conviction by virtue of section

12-10-12 or 12-18-3.

      (d) For purposes of this chapter, "domestic partner" shall be defined as a person who,

prior to the decedent's death, was in an exclusive, intimate and committed relationship with the

decedent, and who certifies by affidavit that their relationship met the following qualifications:

      (1) Both partners were at least eighteen (18) years of age and were mentally competent

to contract;

      (2) Neither partner was married to anyone else;

      (3) Partners were not related by blood to a degree which would prohibit marriage in the

state of Rhode Island;

      (4) Partners resided together and had resided together for at least one year at the time of

death; and

      (5) Partners were financially interdependent as evidenced by at least two (2) of the

following:

      (i) Domestic partnership agreement or relationship contract;

      (ii) Joint mortgage or joint ownership of primary residence;

      (iii) Two (2) of: (A) joint ownership of motor vehicle; (B) joint checking account; (C)

joint credit account; (D) joint lease; and/or

      (iv) The domestic partner had been designated as a beneficiary for the decedent's will,

retirement contract or life insurance.

 

     SECTION 13. Section 42-56-24 of the General Laws in Chapter 42-56 entitled

"Corrections Department" is hereby amended to read as follows:

 

     42-56-24. Earned time for good behavior or program participation or completion. --

(a) The director, or his or her designee, shall keep a record of the conduct of each prisoner, and

for each month that a prisoner who has been sentenced to imprisonment for six (6) months or

more and not under sentence to imprisonment for life, appears by the record to have faithfully

observed all the rules and requirements of the institutions and not to have been subjected to

discipline, and is serving a sentence imposed for violation of sexual offenses under sections 11-

37-2, 11-37-4, 11-37-6, 11-37-8, 11-37-8.1 and 11-37-8.3 or 11-9-1.3 there shall, with the

consent of the director of the department of corrections, or his or her designee, upon

recommendation to him or her by the assistant director of institutions/operations, be deducted

from the term or terms of sentence of that prisoner the same number of days that there are years

in the term of his or her sentence; provided, that when the sentence is for a longer term than ten

(10) years, only ten (10) days shall be deducted for one month's good behavior; and provided,

further, that in the case of sentences of at least six (6) months and less than one year, one day per

month shall be deducted.

      For the purposes of this subsection computing the number of days to be deducted for

good behavior, consecutive sentences shall be counted as a whole sentence. This subsection

recognizes the serious nature of sex offenses; promotes community safety and protection of the

public; and maintains the ability of the department of corrections to oversee the rehabilitation and

supervision of sex offenders.

      (b) For all prisoners serving sentences of more than one month, and not serving a

sentence of imprisonment for life or a sentence imposed for a violation of the sexual offenses

identified in subsection (a) the director, or his or her designee, shall keep a record of the conduct

of each prisoner, and for each month that prisoner has faithfully observed all the rules and

requirements of the institutions and has not been subjected to discipline, there shall, with the

consent of the director of the department of corrections or his or her designee and upon

recommendation by the assistant director of institutions/operations, be deducted from the term or

terms of sentence of that prisoner ten (10) days for each month's good behavior.

      (c) For every day a prisoner shall be shut up or otherwise disciplined for bad conduct, as

determined by the assistant director, institutions/operations, subject to the authority of the

director, there shall be deducted one day from the time he or she shall have gained for good

conduct.

      (d) The assistant director, or his or her designee, subject to the authority of the director,

shall have the power to restore lost good conduct time in whole or in part upon a showing by the

prisoner of subsequent good behavior and disposition to reform.

      (e) For each month that a prisoner who has been sentenced to imprisonment for more

than one month and not under sentence to imprisonment for life who has faithfully engaged in

institutional industries there shall, with the consent of the director, upon the recommendations to

him or her by the assistant director, institutions/operations, be deducted from the term or terms of

the prisoner an additional two (2) days a month.

      (f) Except those prisoners serving a sentence imposed for violation of any sexual offense

committed under sections 11-37-2, 11-37-4, 11-37-6, 11-37-8, 11-37-8.1, 11-37-8.3 or 11-9-13

11-9-1.3, for each month that a prisoner who has been sentenced to imprisonment for more than

one month and not under sentence to imprisonment for life has participated faithfully in programs

that have been determined by the director or his/her designee to address that prisoner's individual

needs that are related to his/her criminal behavior, there may, with the consent of the director and

upon the recommendation of the assistant director, rehabilitative services, be deducted from the

term or terms of the prisoner up to an additional five (5) days a month. Furthermore, whenever

the prisoner has successfully completed such program, they may; with the consent of the director

and upon the recommendation by the assistant director, rehabilitative services, be deducted from

the term or terms of the prisoner up to an additional thirty (30) days.

 

     SECTION 14. Section 5-37.7-12 of the General Laws in Chapter 5-37.7 entitled "Rhode

Island Health Information Exchange Act of 2008" is hereby amended to read as follows:

 

     5-37.7-12. Reconciliation with other authorities. -- (a) This chapter shall only apply to

the HIE system, and does not apply to any other private and/or public health information systems

utilized in Rhode Island, including other health information systems utilized within or by a health

care facility or organization.

      (b) As this chapter provides extensive protection with regard to access to and disclosure

of confidential health care information by the HIE, it supplements, with respect to the HIE only,

any less stringent disclosure requirements, including, but not limited to, those contained in

chapter 37.3 of this title, the health insurance portability and accountability act (HIPAA) and

regulations promulgated thereunder, and any other less stringent federal or state law.

      (c) This chapter shall not be construed to interfere with any other federal or state laws or

regulations which provide more extensive protection than provided in this chapter for the

confidentiality of health care information. Notwithstanding such provision, because of the

extensive protections with regard to access to and disclosure of confidential health care

information by the HIE provided for in this chapter, patient authorization obtained for access to or

disclosure of information to or from the HIE or a provider participant shall be deemed the same

authorization required by other state or federal laws including information regarding mental

health (the Rhode Island mental health law, Rhode Island general laws section 40.1-5-1 et seq.);

HIV (Rhode Island general laws section 23-6-17 23-6.3-7); sexually transmitted disease (Rhode

Island general laws sections 23-6-17 23-6.3-7 and 23-11-9); alcohol and drug abuse (Rhode

Island general laws section 23-1.10-1 et seq., 42 U.S.C. section 290dd-2) or genetic information

(Rhode Island general laws section 27-41-53, Rhode Island general laws section 27-20-39 and

Rhode Island general laws section 27-19-44).

 

     SECTION 15. Sections 8-10-23.3 and 8-10-23.4 of the General Laws in Chapter 8-10

entitled "Family Court" are hereby amended to read as follows:

 

     8-10-23.3. Jamestown Juvenile hearing board Jamestown juvenile hearing board. --

The town of Jamestown shall have the authority to create a juvenile hearing board subject to the

provisions of section 8-10-23.1, and the requirements of the town's regulations, charter or

ordinances.

 

     8-10-23.4. North Providence Juvenile hearing board North Providence juvenile

hearing board. -- The town of North Providence shall use the authority to create a juvenile

hearing board subject to the provisions of section 8-10-23.1, notwithstanding the requirements of

the town's regulations, charter or ordinances.

 

     SECTION 16. Section 9-17-13 of the General Laws in Chapter 9-17 entitled "Witnesses"

is hereby amended to read as follows:

 

     9-17-13. Spouses of parties. -- In the trial of every civil cause, the husband or wife of

either party shall be deemed a competent witness; provided, that neither shall be permitted to give

any testimony tending to criminate the other or to disclose any communication made to him or

her, by the other, during their marriage, except on trials of petitions for divorce between them,

trials between them involving their respective property rights, and under the provisions of section

11-34-3 11-34.1-9.

 

     SECTION 17. Section 11-37-17 of the General Laws in Chapter 11-37 entitled "Sexual

Assault" is hereby amended to read as follows:

 

     11-37-17. Human Immunodeficiency Virus (HIV) -- Mandatory testing. -- (a) Any

person who has admitted to or been convicted of or adjudicated wayward or delinquent by reason

of having committed any sexual offense involving sexual penetration, as defined in section 11-37-

1, whether or not sentence or fine is imposed or probation granted, shall be ordered by the court

upon the petition of the victim, immediate family members of the victim or legal guardian of the

victim, to submit to a blood test for the presence of a sexually transmitted disease including, but

not limited to, the Human Immunodeficiency Virus (HIV) which causes Acquired Immune

Deficiency Syndrome (AIDS) as provided for in chapter 23-6.3.

      (b) Notwithstanding the limitations imposed by sections 23-6-17 23-6.3-7 and 5-37.3-4,

the results of the HIV test shall be reported to the court, which shall then disclose the results to

any victim of the sexual offense who requests disclosure. Review and disclosure of blood test

results by the courts shall be closed and confidential, and any transaction records relating to them

shall also be closed and confidential.

      (c) [Deleted by P.L. 2009, ch. 196, section 3, and by P.L. 2009, ch. 289, section 3_.

      (d) [Deleted by P.L. 2009, ch. 196, section 3, and by P.L. 2009, ch. 289, section 3_.

      (e) [Deleted by P.L. 2009, ch. 196, section 3, and by P.L. 2009, ch. 289, section 3_.

 

     SECTION 18. Sections 23-6.3-1, 23-6.3-4 and 23-6.3-10 of the General Laws in Chapter

23-6.3 entitled "Prevention and Suppression of Contagious Diseases - HIV/AIDS" are hereby

amended to read as follows:

 

     23-6.3-1. Purpose. -- The purpose of this chapter is to reduce vulnerability to HIV/AIDS

transmission, protect persons who are infected with HIV from discrimination, ensure informed

consent for testing, and to provide consistent terms and standards within this title and as

applicable to chapters 11-34 11-34.1, 11-37, 21-28 and 40.1-24.

 

     23-6.3-4. Exceptions to consent requirements. -- (a) A health care provider may test for

the presence of HIV without obtaining consent from the individual to be tested under the

following conditions:

      (1) When the individual to be tested is under one year of age;

      (2) When a child between one and thirteen (13) years of age appears to be symptomatic

for HIV;

      (3) When the individual to be tested is a minor under the care and authority of the

department of children, youth and families, and the director of that department certifies that an

HIV test is necessary to secure health or human services for that individual;

      (4) In a licensed health care facility or health care setting, in the event that an

occupational health representative or physician, registered nurse practitioner, physician assistant,

or nurse-midwife, not directly involved in the exposure, determines that an employee or

emergency service worker, other than one in a supervisory position to the person making the

determination, had a significant exposure to the blood and/or body fluids of a patient and the

patient or the patient's guardian refuses to grant consent for an HIV test to determine whether the

patient has HIV, then, if a sample of the patient's blood is available, that blood shall be tested for

HIV.

      (i) If a sample of the patient's blood is not otherwise available and the patient refuses to

grant consent to draw blood, the employee or emergency service worker may petition the superior

court for a court order mandating that the test be performed.

      (ii) Before a patient or a sample of the patient's blood is required to undergo an HIV test,

the employee or emergency service worker must submit to a baseline HIV test within seventy-two

(72) hours of the exposure.

      (iii) No person who determines that an employee or emergency service worker has

sustained a significant exposure and authorizes the HIV testing of a patient, nor any person or

health care facility who acts in good faith and recommends the test be performed, shall have any

liability as a result of their actions carried out under this chapter, unless those persons are proven

to have acted in bad faith.

      (iv) For the purposes of this section, "emergency service worker" means a worker

responding on behalf of a licensed ambulance/rescue service, or a fire department or a law

enforcement agency, who, in the course of his/her professional duties, has been exposed to bodily

fluids in circumstances that present a significant risk of transmission of HIV, and has completed a

pre-hospital exposure form in accordance with section 23-4.1-19.

      (5) In an emergency, where due to a grave medical or psychiatric condition, and it is

impossible to obtain consent from the patient or, if applicable under state law, the patient's parent,

guardian, or agent.

      (6) As permitted under section 23-1-38 entitled "HIV Antibody Testing-Sperm

Collection or Donation".

      (7) Any individual convicted of a violation of any provisions of Chapter 11-34 11-34.1

entitled "Prostitution and Lewdness" "Commercial Sexual Activity", shall be required to be tested

for HIV unless already documented HIV positive. All individuals tested under this section shall

be informed of their test results. All individuals tested under this section who are determined to

be injecting and/or intra-nasal drug users shall be referred to appropriate substance abuse

treatment as outlined in subsection 23-6.3-3(e).

      (8) Any individual convicted of possession of any controlled substance as defined in

Chapter 21-28 entitled "Uniform Controlled Substances Act", that has been administered with a

hypodermic instrument, retractable hypodermic syringe, needle, intra-nasally, or any similar

instrument adapted for the administration of drugs shall be required to be tested for HIV unless

already documented HIV positive.

      (9) All individuals tested under this section shall be informed of their test results.

      (10) In accordance with the provisions of Chapter 11-37, entitled, "Sexual Assault", any

individual who has admitted to or been convicted of or adjudicated wayward or delinquent by

reason of having committed any sexual offense involving penetration whether or not a sentence or

fine is imposed or probation granted, shall be ordered by the court upon petition of the victim,

immediate family members of the victim or legal guardian of the victim, to submit to a blood test

for the presence of a sexually transmitted disease including, but not limited to, HIV. All

individuals tested under this section shall be informed of their test results.

      (11) In accordance with the provisions or section 42-56-37, entitled "HIV Testing",

every individual who is committed to the adult correctional institutions to any criminal offense,

after conviction, is required to be tested for HIV.

      (b) It is unlawful for any person to disclose to a third party the results of an individual's

HIV test without the prior written consent of that individual, except in accordance with section

23-6.3-7.

 

     23-6.3-10. Notification of disclosure. -- (a) In all cases when an individual's HIV test

results are disclosed to a third-party, other than a person involved in the care and treatment of the

individual, and except as permitted by subsections (1), (2)(i), (2)(ii), (2)(iv), or (4) of section 23-

6-21 section 23-6.3-7 (permitted disclosures re: confidentiality), and permitted by and disclosed

in accordance with the Federal Health Insurance Portability and Accountability Act of 1996

(Public law 104-191) enacted on August 21, 1996 and as thereafter amended, the person so

disclosing shall make reasonable efforts to inform that individual in advance of:

      (1) The nature and purpose of the disclosure;

      (2) The date of disclosure;

      (3) The recipient of the disclosed information.

      (b) Health care providers may inform third-parties with whom an HIV infected patient is

in close and continuous exposure related contact, including, but not limited to a spouse and/or

partner, if the nature of the contact, in the health care providers opinion, poses a clear and present

danger of HIV transmission to the third-party, and if the physician has reason to believe that the

patient, despite the health care provider's strong encouragement, has not and will not inform the

third-party that they may have been exposed to HIV.

 

     SECTION 19. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled

"Licensing of Health Care Facilities" is hereby amended to read as follows:

 

     23-17-38.1. Hospitals -- Licensing fee. -- (a) There is also imposed a hospital licensing

fee at the rate of five and four hundred seventy-three thousandths percent (5.473%) upon the net

patient services revenue of every hospital for the hospital's first fiscal year ending on or after

January 1, 2007. This licensing fee shall be administered and collected by the tax administrator,

division of taxation within the department of administration, and all the administration, collection

and other provisions of chapters 50 and 51 of title 14 shall apply. Every hospital shall pay the

licensing fee to the tax administrator on or before July 13, 2009 and payments shall be made by

electronic transfer of monies to the general treasurer and deposited to the general fund in

accordance with section 44-50-11 [repealed]. Every hospital shall, on or before June 15, 2009,

make a return to the tax administrator containing the correct computation of net patient services

revenue for the hospital fiscal year ending September 30, 2007, and the licensing fee due upon

that amount. All returns shall be signed by the hospital's authorized representative, subject to the

pains and penalties of perjury.

      (b) There is also imposed a hospital licensing fee at the rate of five and two hundred

thirty-seven thousandths percent (5.237%) upon the net patient services revenue of every hospital

for the hospital's first fiscal year ending on or after January 1, 2008. This licensing fee shall be

administered and collected by the tax administrator, division of taxation within the department of

administration, and all the administration, collection and other provisions of chapters 50 and 51 of

title 14 shall apply. Every hospital shall pay the licensing fee to the tax administrator on or before

July 12, 2010 and payments shall be made by electronic transfer of monies to the general

treasurer and deposited to the general fund in accordance with section 44-50-11 [repealed]. Every

hospital shall, on or before June 14, 2010, make a return to the tax administrator containing the

correct computation of net patient services revenue for the hospital fiscal year ending September

30, 2007, and the licensing fee due upon that amount. All returns shall be signed by the hospital's

authorized representative, subject to the pains and penalties of perjury.

      (c) For purposes of this section the following words and phrases have the following

meanings:

      (1) "Hospital" means a person or governmental unit duly licensed in accordance with this

chapter to establish, maintain, and operate a hospital, except a hospital whose primary service and

primary bed inventory are psychiatric.

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

services.

      (3) "Net patient services revenue" means the charges related to patient care services less

(i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances.

      (d) The tax administrator shall make and promulgate any rules, regulations, and

procedures not inconsistent with state law and fiscal procedures that he or she deems necessary

for the proper administration of this section and to carry out the provisions, policy and purposes

of this section.

      (e) The licensing fee imposed by this section shall be in addition to the inspection fee

imposed by section 23-17-38 and to any licensing fees previously imposed in accordance with

section 23-17-38.1.

 

     SECTION 20. Section 40-11-2 of the General Laws in Chapter 40-11 entitled "Abused

and Neglected Children" is hereby amended to read as follows:

 

     40-11-2. Definitions. -- When used in this chapter and unless the specific context

indicates otherwise:

      (1) "Abused and/or neglected child" means a child whose physical or mental health or

welfare is harmed or threatened with harm when his or her parent or other person responsible for

his or her welfare:

      (i) Inflicts or allows to be inflicted upon the child physical or mental injury, including

excessive corporal punishment; or

      (ii) Creates or allows to be created a substantial risk of physical or mental injury to the

child, including excessive corporal punishment; or

      (iii) Commits or allows to be committed, against the child, an act of sexual abuse; or

      (iv) Fails to supply the child with adequate food, clothing, shelter, or medical care,

though financially able to do so or offered financial or other reasonable means to do so; or

      (v) Fails to provide the child with a minimum degree of care or proper supervision or

guardianship because of his or her unwillingness or inability to do so by situations or conditions

such as, but not limited to, social problems, mental incompetency, or the use of a drug, drugs, or

alcohol to the extent that the parent or other person responsible for the child's welfare loses his or

her ability or is unwilling to properly care for the child; or

      (vi) Abandons or deserts the child; or

      (vii) Sexually exploits the child in that the person allows, permits or encourages the child

to engage in prostitution as defined by the provisions in section 11-34-1 11-34.1-1 et seq., entitled

"Prostitution and Lewdness" "Commercial Sexual Activity"; or

      (viii) Sexually exploits the child in that the person allows, permits, encourages or

engages in the obscene or pornographic photographing, filming or depiction of the child in a

setting which taken as a whole suggests to the average person that the child is about to engage in

or has engaged in, any sexual act, or which depicts any such child under eighteen (18) years of

age, performing sodomy, oral copulation, sexual intercourse, masturbation, or bestiality; or

      (ix) Commits or allows to be committed any sexual offense against the child as such

sexual offenses are defined by the provisions of chapter 37 of title 11, entitled "Sexual Assault",

as amended; or

      (x) Commits or allows to be committed against any child an act involving sexual

penetration or sexual contact if the child is under fifteen (15) years of age; or if the child is fifteen

(15) years or older, and (1) force or coercion is used by the perpetrator, or (2) the perpetrator

knows or has reason to know that the victim is a severely impaired person as defined by the

provisions of section 11-5-11, or physically helpless as defined by the provisions of section 11-

37-6.

      (2) "Child" means a person under the age of eighteen (18).

      (3) "Child protective investigator" means an employee of the department charged with

responsibility for investigating complaints and/or referrals of child abuse and/or neglect and

institutional child abuse and/or neglect.

      (4) "Department" means department of children, youth, and families.

      (5) "Institution" means any private or public hospital or other facility providing medical

and/or psychiatric diagnosis, treatment, and care.

      (6) "Institutional child abuse and neglect" means situations of known or suspected child

abuse or neglect where the person allegedly responsible for the abuse or neglect is a foster parent

or the employee of a public or private residential child care institution or agency; or any staff

person providing out-of-home care or situations where the suspected abuse or neglect occurs as a

result of the institution's practices, policies, or conditions.

      (7) "Law enforcement agency" means the police department in any city or town and/or

the state police.

      (8) "Mental injury" includes a state of substantially diminished psychological or

intellectual functioning in relation to, but not limited to, such factors as: failure to thrive; ability

to think or reason; control of aggressive or self-destructive impulses; acting-out or misbehavior,

including incorrigibility, ungovernability, or habitual truancy; provided, however, that the injury

must be clearly attributable to the unwillingness or inability of the parent or other person

responsible for the child's welfare to exercise a minimum degree of care toward the child.

      (9) "Person responsible for child's welfare" means the child's parent, guardian, any

individual, eighteen (18) years of age or older, who resides in the home of a parent or guardian

and has unsupervised access to a child, foster parent, an employee of a public or private

residential home or facility, or any staff person providing out-of-home care (out-of-home care

means child day care to include family day care, group day care, and center-based day care).

Provided further that an individual, eighteen (18) years of age or older, who resides in the home

of a parent or guardian and has unsupervised access to the child, shall not have the right to

consent to the removal and examination of the child for the purposes of section 40-11-6.

      (10) "Physician" means any licensed doctor of medicine, licensed osteopathic physician,

and any physician, intern, or resident of an institution as defined in subdivision (5).

      (11) "Probable cause" means facts and circumstances based upon as accurate and reliable

information as possible that would justify a reasonable person to suspect that a child is abused or

neglected. The facts and circumstances may include evidence of an injury or injuries, and the

statements of a person worthy of belief, even if there is no present evidence of injury.

      (12) "Shaken baby syndrome" means a form of abusive head trauma, characterized by a

constellation of symptoms caused by other than accidental traumatic injury resulting from the

violent shaking of and/or impact upon an infant or young child's head.

 

     SECTION 21. Sections 42-56-20.3 and 42-56-37 of the General Laws in Chapter 42-56

entitled "Corrections Department" are hereby amended to read as follows:

 

     42-56-20.3. Community correctional program for women offenders. -- (a) Program

established. - In addition to the provisions of section 42-56-20.2, there shall be established within

the department of corrections a community correctional program for women offenders.

Notwithstanding any provision to the contrary, the department of corrections may contract with

private agencies to carry out the provisions of this section. The civil liability of these agencies

and their employees, acting within the scope of their employment, and carrying out the provisions

of this section, shall be limited in the same manner and dollar amount as if they were agencies or

employees of the state.

      (b) Persons subject to this section. - Every person who is either sentenced to

imprisonment in the women's division of the adult correctional institutions for a term of two (2)

years or less or awaiting trial at the women's division of the adult correctional institutions shall be

eligible to serve in the community confinement program for women offenders under the

provisions of this section.

      (c) Terms of community correctional program.

      (1) The director, or his or her designee, shall refer persons eligible to serve in the

community correctional program to the program director of the community correctional program.

The program director shall be responsible for developing with each person an individualized plan,

which shall be designed toward providing her an opportunity for rehabilitation and restitution.

Each plan shall assess the need for, and provide for, employment, vocational or academic

education, housing, restitution, community service, or any other social service or counseling need

appropriate to the particular woman. Each plan shall be submitted to the director of the

department of corrections, or his or her designee, for approval.

      (2) Upon approval by the director, or his or her designee, of the plan, the plan shall be

submitted to the sentencing judge for his or her approval. Upon the court's approval, the person

shall be released from the adult correctional institutions for participation in the community

correctional program. The supervision of persons so released shall be conducted by the director,

or his or her designee. The director, or his or her designee, shall have the full power and authority

set forth in section 42-56-20.2.

      (d) Violations. - Any person serving in the community correctional program who is

found to be a violator of any of the terms and conditions imposed upon her according to her plan,

this section or any rules, regulations, or restrictions issued pursuant hereto shall serve the balance

of her sentence in a classification deemed appropriate by the director.

      (e) Costs.

      (1) Assessment of additional penalty for prostitution related offenses. - There shall be

assessed as a penalty, in addition to those provided by law, against all defendants charged under

sections 11-34-1, 11-34-5, 11-34-5.1, and 11-34-8.1 section 11-34.1-1 et seq., who plead nolo

contendere or guilty, or who are found guilty of the commission of those crimes as follows:

      (i) Where the offense charged is a felony, the assessment shall be in the amount of five

hundred dollars ($500), or ten percent (10%) of any fine imposed on the defendant by the court,

whichever is greater;

      (ii) Where the offense charged is a misdemeanor, the assessment shall be in the amount

of three hundred and fifty dollars ($350), or ten percent (10%) of any fine imposed on the

defendant by the court, whichever is greater;

      (iii) Costs shall be assessed whether or not the defendant is sentenced to prison.

      (2) When there are multiple counts or multiple charges to be disposed of simultaneously,

the judge may, in his or her discretion, suspend the obligation of the defendant to pay on more

than three (3) counts or charges.

      (3) The assessment shall be deposited as general revenues.

 

     42-56-37. Human Immunodeficiency Virus (HIV) testing. -- (a) Every person who is

committed to the adult correctional institutions to answer for any criminal offense, after

conviction, is required to be tested for human immunodeficiency virus (HIV). No consent for this

test is required from the person being tested, nor is this test subject to waiver. In addition,

periodic testing for HIV, including testing at the time of release and when deemed appropriate by

a physician, is required. No consent on the part of the person being tested is required.

      (b) All inmates shall be provided appropriate pretest and post-test counseling in

accordance with accepted medical standards. Inmates who develop AIDS or AIDS related

complex are entitled to all reasonable medical treatment available for their illness. No inmate

shall be punished, segregated, or denied recreation privileges solely on the basis of a positive test

result. However, the health care services division of the department of corrections shall, not later

than September 1, 1998, adopt and put into effect reasonable rules and steps to protect the

confidentiality of the HIV test results, in accordance with section 23-6-17 23-6.3-8 and to prevent

persons testing positive for HIV from infecting other inmates and/or correctional staff. If any

person, including any member of the correctional staff at the state department of corrections, is

assaulted or comes into contact with bodily fluid from an inmate or detainee, a department of

corrections physician will incorporate accepted medical standards and determine whether the

incident places the exposed person at risk for HIV or any other blood borne disease. This may

involve drawing a serum sample on the source inmate or detainee in accordance with section 23-

6-14 23-6.3-4 and performing tests to determine the presence of blood borne infections such as

HIV or hepatitis virus. The physician will immediately inform the exposed person of the medical

assessment of risk, which will take into account the serostatus of the source inmate or detainee,

and will provide for emergency medical care, according to accepted medical standards.

      (c) The department of corrections shall institute a comprehensive HIV education and

drug treatment program for inmates and staff at all of its facilities. The educational program for

correctional staff shall be in-service, fully reimbursable to the employee, and mandatory and shall

be given periodically in collaboration with the department of health. The department of

corrections shall make easily accessible personal protective equipment for correctional personnel

to be used in the event of administering cardiac or respiratory resuscitation.

 

     SECTION 22. Section 44-54-1 of the General Laws in Chapter 44-54 entitled "Disabled

Access Credit For Small Businesses" is hereby amended to read as follows:

 

     44-54-1. Tax credit. -- (a) A small business taxpayer that pays for or incurs expenses to

provide access to persons with disabilities shall be allowed a credit, to be computed against the

tax imposed by chapters 11 and 13 of this title. The expenses must be paid or incurred to enable

the small business to comply with federal or state laws protecting the rights of persons with

disabilities. The credit is equal to ten percent (10%) of the total amount expended in the state of

Rhode Island during the taxable year but in no event shall exceed the sum of one thousand dollars

($1,000) for:

      (1) Removing architectural, communication, physical, or transportation barriers;

      (2) Providing qualified interpreters or other effective methods of delivering aurally

delivered materials to persons with hearing impairments;

      (3) Providing readers, tapes or other effective means of making visually delivered

materials available to persons with visual impairments;

      (4) Providing job coaches or other effective methods of supporting workers with severe

impairments in competitive employment;

      (5) Providing specialized transportation services to employees or customers with

mobility impairments;

      (6) Buying or modifying equipment for persons with disabilities; and

      (7) Providing similar services, modifications, material or equipment for persons with

disabilities;

      (b) As used in this chapter, the following words have the following meanings:

      (1) "Small business" is one that for the preceding year had thirty (30) or fewer full-time

employees, or had one million dollars ($1,000,000) or less in gross receipts.

      (2) "Full-time employee" is one employed at least thirty (30) hours a week for twenty

(20) or more calendar weeks in the proceeding preceding year.

      (3) "Federal or state laws protecting the rights of persons with disabilities" includes but

is not limited to the: Americans with Disabilities Act of 1990, 42 U.S.C. section 12101 et. seq.;

Title V of the Rehabilitation Act of 1973, 29 U.S.C. section 794; Declaration of Certain

Constitutional Rights and Principles -- Discrimination, R.I. Const. art. 1, section 2; Civil Rights

of People with Disabilities, chapter 87 of title 42; Open Meeting Handicapped Accessibility for

persons with disabilities, section 42-46-13; Access for persons with disabilities, section 37-8-15;

and AIDS Discrimination Prohibited, section 23-6-22 23-6.3-11.

      (4) "Amount expended" means the actual sum of money spent.

 

     SECTION 23. Section 46-15.3-20 of the General Laws in Chapter 46-15.3 entitled

"Public Drinking Water Supply System Protection" is hereby amended to read as follows:

 

     46-15.3-20. Enforcement. -- (a) The water resources board shall forward any

determination of non-compliance made pursuant to sections 46-15.3-7.5, and 46-15.3-7.6 and 46-

15.3-15 to the division of public utilities and carriers. The division of public utilities and carriers

shall consider such determinations of non-compliance as a complaint under section 39-4-3.

      (b) The order of the division of public utilities and carriers may be appealed pursuant to

section 39-5-1.

 

     SECTION 24. Section 14-1-42 of the General Laws in Chapter 14-1 entitled

"Proceedings in Family Court" is hereby amended to read as follows:

 

     14-1-42. Modification of order of commitment -- Release, detention, or

recommitment of child. -- (a) An order of commitment made by the court in the case of a child

shall be subject to modification or revocation from time to time.

      (b) A parent, guardian, or next friend of a child or counsel for a child who has been

committed or assigned by the court to the custody of the department of children, youth and

families may at any time file with the court a verified petition, stating that the person or the

department has denied an application for the release of the child or has failed to act upon the

application within a reasonable time. If the court is of the opinion that an investigation should be

had, it may, upon due notice to all concerned, proceed to hear and determine the question at issue.

If a petition is filed, it shall be the duty of the court to determine by clear and convincing

evidence that there has been a change of circumstances, and where the modification or revocation

of the order of commitment is in the best interest of the child and the public, the court may:

      (1) Order that the child be restored to the custody of its parent or guardian or be detained

in the custody of the person or the department;

      (2) Direct the person or the department to make any other arrangements for the child's

care and welfare that the circumstances of the case may require; or

      (3) A further order of commitment.

      (c) In any case where a child has been certified and adjudicated pursuant to sections 14-

1-7.2 and 14-1-7.3, and sentenced pursuant to section 14-17.3(a)(2) 14-1-7.3(a)(2), the court shall

schedule a review of the child's case thirty (30) days prior to the child's eighteenth birthday or

thirty (30) days prior to the one-year anniversary of the imposition of the sentence, whichever is

greater. It shall be the responsibility of the attorney general or of the law enforcement agency

making the arrest to notify the victim or victims of the crime for which the juvenile was certified

and adjudicated of the pendency of the hearing and afford them the opportunity to be heard. The

court shall not hear or determine any other motion for modification of the order of certification,

except as provided for in this section. At that time and upon proof by clear and convincing

evidence that demonstrates that the person has made sufficient efforts at rehabilitation and that

the modification of the order of certification would not pose a threat to the safety of the public,

the court may suspend, but shall not vacate, the balance of the sentence.

      (d) In the event that the court, after a hearing, determines that it has not been

demonstrated by clear and convincing evidence that the person has made sufficient efforts at

rehabilitation and that the modification of the order of certification entered pursuant to section 14-

1-7.3(a)(2) would pose a threat to the safety of the public, the court shall order either:

      (1) That the person be remanded to the training school for youth until further hearing to

be held no later than one year thereafter in accordance with subsection (c) of this section; or

      (2) That the jurisdiction of the sentence be transferred to the department of corrections

and that the balance of the sentence be served in facilities under the control of the department.

      (3) In any case where a child has been certified and adjudicated pursuant to section 14-

17.3(a)(2) 14-1-7.3(a)(2), upon motion by the attorney general and/or the department of children,

youth and families, the court shall conduct a hearing to consider modification of the order of

certification if the family court determines that the individual poses a serious threat to the safety

of the public, other residents at the training school and/or training school staff. Upon that finding

the court may order that the jurisdiction of the sentence be transferred to the department of

corrections and that the balance of the sentence be served in facilities under the control of the

department.

 

     SECTION 25. Sections 31-1-3 and 31-1-5 of the General Laws in Chapter 31-1 entitled

"Definitions and General Code Provisions" are hereby amended to read as follows:

 

     31-1-3. Types of vehicles. -- (a) (1) "Antique motor car" means any motor vehicle which

is more than twenty-five (25) years old. Unless fully inspected and meeting inspection

requirements, the vehicle may be maintained solely for use in exhibitions, club activities, parades,

and other functions of public interest and may not be used primarily for the transportation of

passengers or goods over any public highway;

      (2) After the vehicle has met the requirements of state inspection, a registration plate

may be issued to it on payment of the standard fee. The vehicle may be operated on the highways

of this and other states, and may in addition to the registration plate retain the designation

"antique" and display an "antique plate".

      (b) (1) "Antique motorcycle" means any motorcycle which is more than twenty-five (25)

years old. Unless fully inspected and meeting inspection requirements, the vehicle shall be

maintained solely for use in exhibitions, club activities, parades, and other functions of public

interest and may not be used primarily for the transportation of passengers or goods over any

public highway;

      (2) After the vehicle has met the requirements of state inspection, a registration plate

may be issued to it on payment of the standard fee, and the vehicle may be operated on the

highways of this and other states, and may in addition to the registration plate retain the

designation "antique" and display an "antique plate".

      (c) "Authorized emergency vehicle" means vehicles of the fire department (fire patrol),

police vehicles, vehicles used by Rhode Island state marshals in the department of corrections,

vehicles used by the state bomb squad within the division of state fire marshal, vehicles of

municipal departments or public service corporations designated or authorized by the

administrator as ambulances and emergency vehicles; and privately owned motor vehicles of

volunteer firefighters or privately owned motor vehicles of volunteer ambulance drivers or

attendants, as authorized by the department chief or commander and permitted by the Rhode

Island association of fire chiefs and Rhode Island association of police chiefs joint committee for

volunteer warning light permits.

      (d) "Automobile" means, for registration purposes, every motor vehicle carrying

passengers other than for hire.

      (e) "Bicycle" means every vehicle having two (2) tandem wheels, except scooters and

similar devices, propelled exclusively by human power, and upon which a person may ride.

     (f) "Camping recreational vehicle" means a vehicular type camping unit, certified by the

manufacturer as complying with ANSI A119.2 Standards designed primarily as temporary living

quarters for recreation that has either its own motive power or is mounted on or towed by another

vehicle. The basic units are tent trailers, fifth-wheel trailers, motorized campers, travel trailers,

and pick-up campers.

      (f) (g) "Electric motorized bicycles" means a motorized bicycle which may be propelled

by human power or electric motor power, or by both, with an electric motor rated not more than

two (2) (S.A.E.) horsepower, which is capable of a maximum speed of not more than twenty-five

(25) miles per hour.

      (g) (h) "Electric personal assistive mobility device" ("EPAMD") is a self-balancing two

(2) non-tandem wheeled device, designed to transport only one person, with an electric

propulsion system which limits the maximum speed of the device to fifteen (15) miles per hour.

      (h) (i) "Hearse" means every motor vehicle used for transporting human corpses. A

hearse shall be considered an automobile for registration purposes.

     (j) Fifth-wheel trailer: A towable recreational vehicle, not exceeding four hundred (400)

square feet in area, designed to be towed by a motorized vehicle that contains a towing

mechanism that is mounted above or forward of the tow vehicle's rear axle and which is eligible

to be registered for highway use.

     (h) (k) "Hearse" means every motor vehicle used for transporting human corpses. A

hearse shall be considered an automobile for registration purposes.

     (i) (l) "Jitney or bus" means: (1) a "public bus" which includes every motor vehicle,

trailer, semi-trailer, tractor trailer, or tractor trailer combination, used for the transportation of

passengers for hire, and operated wholly or in part upon any street or highway as a means of

transportation similar to that afforded by a street railway company, by indiscriminately receiving

or discharging passengers, or running on a regular route or over any portion of one, or between

fixed termini; or (2) a "private bus" which includes every motor vehicle other than a public bus or

passenger van designed for carrying more than ten (10) passengers and used for the transportation

of persons, and every motor vehicle other than a taxicab designed and used for the transportation

of persons for compensation.

      (j) (m) "Motorcycle" means only those motor vehicles having not more than three (3)

wheels in contact with the ground and a saddle on which the driver sits astride, except bicycles

with helper motors as defined in subsection ( l ) (o) of this section.

      (k) (n) "Motor-driven cycle" means every motorcycle, including every motor scooter,

with a motor of no greater than five (5) horsepower, except bicycles with helper motors as

defined in subsection ( l ) (o) of this section.

      (l) (o) "Motorized bicycles" means two (2) wheel vehicles which may be propelled by

human power or helper power, or by both, with a motor rated not more than four and nine-tenths

(4.9) horsepower and not greater than fifty (50) cubic centimeters, which are capable of a

maximum speed of not more than thirty (30) miles per hour.

     (p) Motorized camper: A camping recreational vehicle, built on or permanently attached

to a self-propelled motor vehicle chassis cab or van that is an integral part of the completed

vehicle.

      (m) (q) "Motorized tricycles" means tricycles which may be propelled by human power

or helper motor, or by both, with a motor rated no more than 1.5 brake horsepower which is

capable of a maximum speed of not more than thirty (30) miles per hour.

      (n) (r) "Motorized wheelchair" means any self-propelled vehicle, designed for and used

by a person with a disability, that is incapable of speed in excess of eight (8) miles per hour.

     (s) "Motor scooter" means a motor-driven cycle with a motor rated not more than four

and nine-tenths (4.9) horsepower and not greater than fifty (50) cubic centimeters, which is

capable of a maximum speed of not more than thirty (30) miles per hour.

      (o) (t) "Motor vehicle" means every vehicle which is self-propelled or propelled by

electric power obtained from overhead trolley wires, but not operated upon rails, except vehicles

moved exclusively by human power, an EPAMD and electric motorized bicycles as defined in

subsection (f) (g) of this section, and motorized wheelchairs.

      (p) (u) "Motor vehicle for hire" means every motor vehicle other than jitneys, public

buses, hearses, and motor vehicles used chiefly in connection with the conduct of funerals, to

transport persons for compensation in any form, or motor vehicles rented for transporting persons

either with or without furnishing an operator.

     (v) Park trailer: A camping recreational vehicle that is eligible to be registered for

highway use and meets the following criteria: (1) built on a single chassis mounted on wheels;

and (2) certified by the manufacturer as complying with ANSI A119.5.

      (q) (w) "Passenger van" means every motor vehicle capable of carrying ten (10) to

fourteen (14) passengers plus an operator and used for personal use or on a not-for-hire basis.

Passenger vans may be used for vanpools, transporting passengers to and from work locations,

provided that the operator receives no remuneration other than free use of the vehicle.

      (r) (x) "Pedal carriages" (also known as "quadricycles") means a nonmotorized bicycle

with four (4) or more wheels operated by one or more persons for the purpose of, or capable of,

transporting additional passengers in seats or on a platform made a part of or otherwise attached

to the pedal carriage. The term shall not include a bicycle with trainer or beginner wheels affixed

to it, nor shall it include a wheelchair or other vehicle with the purpose of operation by or for the

transportation of a handicapped person, nor shall it include a tricycle built for a child or an adult

with a seat for only one operator and no passenger.

     (y) Pick-up camper: A camping recreational vehicle consisting of a roof, floor, and sides

designed to be loaded onto and unloaded from the back of a pick-up truck.

      (s) (z) "Rickshaws" (also known as "pedi cabs") means a nonmotorized bicycle with

three (3) wheels operated by one person for the purpose of, or capable of, transporting additional

passengers in seats or on a platform made a part of or otherwise attached to the rickshaw. This

definition shall not include a bicycle built for two (2) where the operators are seated one behind

the other, nor shall it include the operation of a bicycle with trainer or beginner wheels affixed

thereto, nor shall it include a wheelchair or other vehicle with the purpose of operation by or for

the transportation of a handicapped person.

      (t) (aa) "School bus" means every motor vehicle owned by a public or governmental

agency, when operated for the transportation of children to or from school; or privately owned,

when operated for compensation for the transportation of children to or from school.

      (u) (bb) "Suburban vehicle" means every motor vehicle with a convertible or

interchangeable body or with removable seats, usable for both passenger and delivery purposes,

and including motor vehicles commonly known as station or depot wagons or any vehicle into

which access can be gained through the rear by means of a hatch or trunk and where the rear seats

can be folded down to permit the carrying of articles as well as passengers.

     (cc) Tent trailer: A towable recreational vehicle that is mounted on wheels and

constructed with collapsible partial side walls that fold for towing by another vehicle and unfold

for use and which is eligible to be registered for highway use.

      (v) (dd) "Trackless trolley coach" means every motor vehicle which is propelled by

electric power obtained from overhead trolley wires, but not operated on rails.

     (ee) Travel trailer: A towable recreational vehicle, not exceeding three hundred twenty

(320) square feet in area, designed to be towed by a motorized vehicle containing a towing

mechanism that is mounted behind the tow vehicle's bumper and which is eligible to be registered

for highway use.

      (w) "Camping recreational vehicle" means a vehicular type camping unit, certified by the

manufacturer as complying with ANSI A119.2 Standards designed primarily as temporary living

quarters for recreation that has either its own motive power or is mounted on or towed by another

vehicle. The basic units are tent trailers, fifth wheel trailers, motorized campers, travel trailers,

and pick-up campers.

      (x) (ff) "Vehicle" means every device in, upon, or by which any person or property is or

may be transported or drawn upon a highway, except devices used exclusively upon stationary

rails or tracks.

      (y) Tent trailer: A towable recreational vehicle that is mounted on wheels and

constructed with collapsible partial side walls that fold for towing by another vehicle and unfold

for use and which is eligible to be registered for highway use.

      (z) Fifth wheel trailer: A towable recreational vehicle, not exceeding four hundred (400)

square feet in area, designed to be towed by a motorized vehicle that contains a towing

mechanism that is mounted above or forward of the tow vehicle's rear axle and which is eligible

to be registered for highway use.

      (aa) Motorized camper: A camping recreational vehicle, built on or permanently attached

to a self-propelled motor vehicle chassis cab or van that is an integral part of the completed

vehicle.

      (bb) Travel trailer: A towable recreational vehicle, not exceeding three hundred twenty

(320) square feet in area, designed to be towed by a motorized vehicle containing a towing

mechanism that is mounted behind the tow vehicle's bumper and which is eligible to be registered

for highway use.

      (cc) Pick-up camper: A camping recreational vehicle consisting of a roof, floor, and

sides designed to be loaded onto and unloaded from the back of a pick-up truck.

      (dd) Park trailer: A camping recreational vehicle that is eligible to be registered for

highway use and meets the following criteria: (i) built on a single chassis mounted on wheels; and

(ii) certified by the manufacturer as complying with ANSI A119.5.

      (ee) "Motor scooter" means a motor-driven cycle with a motor rated not more than four

and nine-tenths (4.9) horsepower and not greater than fifty (50) cubic centimeters, which is

capable of a maximum speed of not more than thirty (30) miles per hour.

 

     31-1-5. Trailers. -- (a) "Pole trailer" means every vehicle without motive power designed

to be drawn by another vehicle and attached to the towing vehicle by means of a reach, or pole, or

by being boomed or secured to the towing vehicle, and ordinarily used for transporting long or

irregularly shaped loads such as poles, pipes, or structural members capable, generally, of

sustaining themselves as beams between the supporting connections.

      (b) "Semi-trailer" means every vehicle with or without motive power, other than a pole

trailer, designed for carrying persons or property and for being drawn by a motor vehicle,

constructed so that some of its weight and that of its load rests upon or is carried by another

vehicle.

      (c) "Trailer" means every vehicle without motive power, other than a pole trailer,

designed for carrying persons or property and for being drawn by a motor vehicle, constructed so

that none of its weight rests upon the towing vehicle.

      (d) (c) "Tractor-semi-trailer combination" means every combination of a tractor and a

semi-trailer properly attached to the tractor to form an articulated vehicle.

      (e) (d) "Tractor-trailer combination" means every combination of a tractor and a trailer,

properly attached to the tractor to form an articulated vehicle.

     (e) "Trailer" means every vehicle without motive power, other than a pole trailer,

designed for carrying persons or property and for being drawn by a motor vehicle, constructed so

that none of its weight rests upon the towing vehicle.

 

     SECTION 26. Section 31-3-7 of the General Laws in Chapter 31-3 entitled "Registration

of Vehicles" is hereby amended to read as follows:

 

     31-3-7. Registration -- Indexing of records. -- The division of motor vehicles shall file

each application received and when satisfied as to its genuineness and regularity, and that the

applicant is entitled to register the vehicle, shall register the vehicle and keep a record of it in

suitable books or on index cards as follows:

      (a) (1) Under a distinctive regulation number assigned to the vehicle;

      (b) (2) Alphabetically, under the name of the owner;

      (c) (3) Under the motor number if available, otherwise any other identifying number of

the vehicle; and

      (d) (4) In the discretion of the division of motor vehicles, in any other manner it may

deem desirable.

 

     SECTION 27. Section 31-3.1-37 of the General Laws in Chapter 31-3.1 entitled

"Certificates of Title and Security Interests" is hereby amended to read as follows:

 

     31-3.1-37. Passage of title upon death of owner. -- Unless otherwise provided in the

last will and testament of a decedent, any motor vehicle(s) owned by the decedent shall belong,

and title to them shall pass, to the surviving spouse.

      (a) (1) The administrator of the division of motor vehicles shall register the motor

vehicle(s) in the name of the surviving spouse upon presentation to the division of motor vehicles

of:

      (1) (i) A certified copy of the death certificate of the deceased spouse;

      (2) (ii) Registration(s) of the motor vehicle(s) of the deceased spouse.

      (b) (2) No fee shall be charged to the surviving spouse for issuance of a new certificate

of title.

      (c) (3) A surviving spouse shall not be charged a registration fee during the year he or

she is registering the vehicle(s) in his or her name and having a new certificate of title issued,

      (1) (i) Where the deceased spouse registered that motor vehicle(s) with the division of

motor vehicles; and

      (2) (ii) Paid the registration fees provided in section 31-6-1 for the motor vehicle(s) for

the year.

      (d) (4) Where the deceased spouse did not register the motor vehicle(s) or failed to pay a

registration fee pursuant to section 31-6-1 for the year in which the surviving spouse appears to

register the motor vehicle(s) and have a new title certificate issued in his or her name, then the

surviving spouse shall pay a pro rata amount of the annual registration fee for the remaining

months of the year.

 

     SECTION 28. Sections 31-10-6.2 and 31-10-34.5 of the General Laws in Chapter 31-10

entitled "Operators' and Chauffeurs' Licenses" are hereby amended to read as follows:

 

     31-10-6.2. Out-of-state exceptions. -- (a) A nonresident who is at least seventeen (17)

years old but less than eighteen (18) years old, who has an unrestricted drivers license issued by

that state, and who becomes a resident of this state may apply for and obtain within thirty (30)

days of establishing residency one of the following:

      (1) Temporary permit. - If the person has not completed a drivers education course that

meets the requirements of the department of education but is currently enrolled in a drivers

education course that meets these requirements. A temporary permit is valid for the period

specified in the permit and authorizes the holder of the permit to drive a specified type or class of

motor vehicle when in possession of the permit, subject to any restrictions imposed by the

division of motor vehicles concerning time of driving, supervision, and passenger limitations. The

period must end within ten (10) days after the expected completion date of the drivers education

course in which the applicant is enrolled.

      (2) Full operator's license. - If the person has completed a drivers education course that

meets the requirements of the department of elementary and secondary education; has held the

license issued by the other state for at least twelve (12) months; and has not been convicted

during the preceding six (6) months of a motor vehicle moving violation, a seat belt infraction, or

an offense committed in another jurisdiction that would be a motor vehicle moving violation or

seat belt infraction if committed in this state.

      (3) Limited provisional license. - If the person has completed a drivers education course

that meets the requirements of the department of elementary and secondary education but either

did not hold the license issued by the other state for at least twelve (12) months; or was convicted

during the preceding six (6) months of a motor vehicle moving violation, a seat belt infraction or

an offense committed in another jurisdiction that would be a motor vehicle moving violation or

seat belt infraction if committed in this state.

 

     31-10-34.5. Transfer of functions to administrator of division of motor vehicles. --

Upon the effective date of this act On [May 4, 2005] all functions, services performed,

responsibilities and duties formerly of the drivers' training school licensing board are hereby

transferred to the administrator of the division of motor vehicles.

 

     SECTION 29. Section 31-21.1-5 of the General Laws in Chapter 31-21.1 entitled "Traffic

Stops Statistics" is hereby amended to read as follows:

 

     31-21.1-5. Adoption of written policies. – (a) Not later than ninety (90) days after

January 1, 2004, each police department and the state police shall adopt written policies which

shall prohibit the use of racial profiling as the sole reason for stopping or searching motorists for

routine traffic stops.

      (b) Copies of the policies adopted pursuant to this section shall be submitted to the

attorney general and the committee, and shall be public records.

 

     SECTION 30. Section 31-41.1-1 of the General Laws in Chapter 31-41.1 entitled

"Adjudication of Traffic Offenses" is hereby amended to read as follows:

 

     31-41.1-1. Form of summons. -- (a) The summons and complaint to be issued to an

offending operator shall contain any information, and be in any form that may be required by the

rules of procedure promulgated by the chief magistrate of the traffic tribunal. Every summons

shall provide notice of:

      (i) (1) The charge or charges against the operator; and

      (ii) (2) A date to appear in the traffic tribunal and answer the charges against him or her.

      (b) The form for the summons and complaint authorized by this section shall be used for

all violations specified in sections 8-8.2-2, 8-18-3 and 8-18-9. The summons may be the same as

the summons provided for in section 31-27-12. The chief executive officer of each local police

force which is required to use the summons and complaint provided for in this chapter shall

prepare or cause to be prepared any records and reports that may be prescribed by the rules of the

traffic tribunal.

 

     SECTION 31. Sections 31-41.2-3, 31-41.2-4 and 31-41.2-9 of the General Laws in

Chapter 31-41.2 entitled "Automated Traffic Violation Monitoring Systems" are hereby amended

to read as follows:

 

     31-41.2-3. Automated traffic violation monitoring systems. -- (a) The state department

of transportation and the municipalities of this state are hereby authorized to install and operate

automated traffic violation detection systems. Such systems shall be limited to systems which

monitor and detect violations of traffic control signals. For purposes of this chapter an automated

traffic violation detection system means a system with one or more motor vehicle sensors which

produces images of motor vehicles being operated in violation of traffic signal laws.

      (b) No automated traffic violation detection system shall be installed pursuant to this

section which has not been approved for use by the director of the state department of

transportation. The director of the state department of transportation shall promulgate regulations

for the approval and operation of said systems pursuant to the administrative procedures act,

chapter 35 of title 42. Systems shall be approved if the director is satisfied they meet standards of

efficiency and accuracy. All systems installed for use under this chapter must be able to record

the image of the vehicle and the license plates of the vehicle.

      (c) In the event that the system is to be installed other than by the state department of

transportation on state-maintained streets or roads, the director of the department of transportation

must approve such installation.

      (d) The state department of transportation and/or the municipalities may enter into an

agreement with a private corporation or other entity to provide automated traffic violation

detection systems or equipment and to maintain such systems.

     (e) Compensation to a private entity that provides traffic signal monitoring devices shall

be based on the value of such equipment and related support services, and shall not be based on

the revenue generated by such systems.

 

     31-41.2-4. Procedure -- Notice. -- (a) Except as expressly provided in this chapter, all

prosecutions based on evidence produced by an automated traffic violation detection system shall

follow the procedures established in chapter 41.1 of this title, chapter 8-18 of these general laws

and the rules promulgated by the chief magistrate of the traffic tribunal for the hearing of civil

traffic violations. Citations may be issued by an officer solely based on evidence obtained by use

of an automated traffic violation detection system. All citations issued based on evidence

obtained from an automated traffic violation detection system shall be issued within fourteen (14)

days of the violation.

      (b) It shall be sufficient to commence a prosecution based on evidence obtained from an

automated traffic violation detection system that a copy of the citation and supporting

documentation be mailed to the address of the registered owner kept on file by the registry of

motor vehicles pursuant to section 31-3-34 of these general laws. For purposes of this section, the

date of issuance shall be the date of mailing.

      (c) The officer issuing the citation shall certify under penalties of perjury that the

evidence obtained from the automated traffic violation detection system was sufficient to

demonstrate a violation of the motor vehicle code. Such certification shall be sufficient in all

prosecutions pursuant to this chapter to justify the entry of a default judgment upon sufficient

proof of actual notice in all cases where the citation is not answered within the time period

permitted.

      (d) The citation shall contain all the information provided for on the uniform summons

as referred to in section 31-41.1-1 of the general laws and the rules of procedure promulgated by

the chief magistrate of the traffic tribunal subject to the approval of the supreme court pursuant to

section 8-6-2.

      (e) In addition to the information in the uniform summons, the following information

shall be attached to the citation:

      (i) (1) Copies of two (2) or more photographs, or microphotographs, or other recorded

images taken as proof of the violation; and

      (ii) (2) A signed statement by a trained law enforcement officer that, based on inspection

of recorded images, the motor vehicle was being operated in violation of section 31-13-4 of this

subtitle; and

      (iii) (3) A statement that recorded images are evidence of a violation of this chapter; and

      (iv) (4) A statement that the person who receives a summons under this chapter may

either pay the civil penalty in accordance with the provisions of section 31-41.1-3, or elect to

stand trial for the alleged violation.

 

     31-41.2-9. Reports. -- (a) The agency or municipality authorizing the installation of

automated traffic signal detection systems shall prepare an annual report containing data on:

      (1) the The number of citations issued at each particular intersection;

      (2) the The number of those violations paid by mail;

      (3) the The number of those violations found after trial or hearing;

      (4) the The number of violations dismissed after trial or hearing;

      (5) the The number of accidents at each intersection;

      (6) a A description as to the type of accident;

      (7) an An indication regarding whether there were any injuries involved in any accident

reported;

      (8) the The cost to maintain the automated traffic signal detection system; and

      (9) the The amount of revenue obtained from the automated traffic signal detection

system.

 

     SECTION 32. Sections 31-47.3-2 and 31-47.3-3 of the General Laws in Chapter 31-47.3

entitled "The Diesel Emissions Reduction Act" are hereby amended to read as follows:

 

     31-47.3-2. Definitions. -- When used in this chapter:

      (1) "Best available retrofit technology" means technology, verified by the United States

Environmental Protection Agency or California Air Resources Board (CARB) for achieving

reductions in particulate matter emissions at the highest classification level for diesel emission

control strategies that is applicable to the particular engine and application. Such technology shall

not result in a net increase in nitrogen oxides.

     (2) "Closed crankcase ventilation system (CCV)" means a system that separates oil and

other contaminant from the blow-by gases and routes the blow-by gases into a diesel engine's

intake system downstream of air filter.

      (2) "Heavy duty vehicle" or "vehicle" means any on-road or nonroad vehicle powered by

diesel fuel and having a gross vehicle weight of greater than fourteen thousand (14,000) pounds.

      (3) "Director" refers to the director of the department of environmental management

(DEM).

     (4) "Full-sized school bus" means a school bus, as defined in Rhode Island general law

section 31-1-3, which is a type 1 diesel school bus, including spare buses operated by or under

contract to a school district, but not including emergency contingency vehicles or low usage

vehicles.

     (5) "Heavy duty vehicle" or "vehicle" means any on-road or nonroad vehicle powered by

diesel fuel and having a gross vehicle weight of greater than fourteen thousand (14,000) pounds.

      (4) (6) "Level 1 control" means a verified diesel emission control device that achieves a

particulate matter (PM) reduction of twenty-five percent (25%) or more compared to uncontrolled

engine emissions levels.

      (5) (7) "Level 2 control" means a verified diesel emission control device that achieves a

particulate matter (PM) emission reduction of fifty percent (50%) or more compared to

uncontrolled engine emission levels.

      (6) (8) "Level 3 control" means a verified diesel emission control device that achieves a

particulate matter (PM) emission reduction of eighty-five percent (85%) or more compared to

uncontrolled engine emission levels, or that reduces emissions to less than or equal to one one-

hundredth (0.01) grams of (PM) per brake horsepower-hour. Level 3 control includes repowering

or replacing the existing diesel engine with an engine meeting US EPA's 2007 Heavy-duty

Highway Diesel Standards, or in the case of a nonroad engine, an engine meeting the US EPA's

Tier 4 Nonroad Diesel Standards.

      (7) "Closed crankcase ventilation system (CCV)" means a system that separates oil and

other contaminant from the blow-by gases and routes the blow-by gases into a diesel engine's

intake system downstream of air filter.

      (8) "Full-sized school bus" means a school bus, as defined in (Rhode Island general law)

section (31-1-3), which is a type 1 diesel school bus, including spare buses operated by or under

contract to a school district, but not including emergency contingency vehicles or low usage

vehicles.

      (9) "Model year 2007 emission standards" means engine standards promulgated by the

federal Environmental Protection Agency in 40 CFR Parts 69, 80 and 86.

      (10) "Verified emissions control device" means a device that has been verified by the

federal Environmental Protection Agency or the California Air Resources Board to reduce

particulate matter emissions by a given amount.

 

     31-47.3-3. Reducing emissions from school buses. -- (a) Purpose. - To reduce health

risks from diesel particulate matter (DPM) to Rhode Island school children by significantly

reducing tailpipe emissions from school buses, and preventing engine emissions from entering the

passenger cabin of the buses.

      (b) Requirements for Rhode Island school buses:

      (i) (1) By September 1, 2010, no full-size school bus with an engine model year 1993 or

older may be used to transport school children in Rhode Island; and,

      (ii) (2) Providing there is sufficient federal or state monies, by September 1, 2010, all

full-sized school buses transporting children in Rhode Island must be retrofitted with a closed

crankcase ventilation system and either: (A) (i) be equipped with a level 1, level 2, or level 3

device verified by the US Environmental Protection Agency or the California Air Resources

Board; or (B) (ii) be equipped with an engine of model year 2007 or newer; or (C) (iii) achieve

the same or higher diesel PM reductions through the use of an alternative fuel such as compressed

natural gas verified by CARB/EPA to reduce DPM emissions at a level equivalent to or higher

than subsection (B) (ii) above.

      (c) Financial assistance to defray costs of pollution reductions called for in (b)(ii)(2):

      (i) (1) DEM shall work with the Rhode Island department of transportation or other

authorized transit agencies to maximize the allocation of federal congestion mitigation and air

quality (CMAQ) money for Rhode Island for diesel emissions reductions in federal FY 2008 and

thereafter until the retrofit goals in this act are met. The (CMAQ) program is jointly administered

by the federal highway administration (FHWA) and the federal transit administration (FTA), and

was reauthorized by congress in 2005 under the safe, accountable, flexible, and efficient

transportation equity act: A legacy for users (SAFETEA-LU). The (SAFETEA-LU) requires

states and MPOs to give priority in distributing CMAQ funds to diesel engine retrofits, and other

cost-effective emission reduction and congestion mitigation activities that benefit air quality.

      (ii) (2) Drawing upon any available federal or state monies, the director shall establish

and implement a system of providing incentives consistent with this section to municipalities,

vendors, or school bus owners for the purchase and installation of any CARB/EPA-verified

emission control retrofit device together with the purchase and installation of closed crankcase

ventilation system (CCV) retrofit device. In 2007, the per-unit incentive shall not exceed one

thousand two hundred fifty dollars ($1,250) for a level 1 device plus a CCV, or two thousand five

hundred dollars ($2,500) for a level 2 device plus a CCV, or for model years 2003-2006 five

thousand dollars ($5,000) for a level 3 device plus a CCV. Incentive levels may be reevaluated

annually, with the goal of maintaining competition in the market for retrofit devices. To the

extent practicable, in kind services will also be utilized to offset some of the costs. Incentive

recipients must also certify that newly purchased or retrofitted buses with a level 3 technology

will operate in the state of Rhode Island for a minimum of four (4) years.

      (d) Priority community provision:

      (i) (1) When penalty funds, state SEP funds, federal funds, or funds from other state or

non- state sources become available, these should first be allocated toward further offsetting costs

of achieving "best available" emissions control in "priority communities";

      (ii) (2) The "best available" standard is attained by all new buses (MY2007 and newer)

and by diesel buses model year 2003 to 2006, inclusive that has been retrofitted with level 3-

verified diesel particulate filters and closed crankcase ventilation systems, by diesel buses model

year 1994 to 2002, inclusive that has been retrofitted with at least level 2-verified diesel

particulate filters and closed crankcase ventilation systems or could be achieved with a natural

gas bus that achieves the same or better standards of cleanliness as a 2007 diesel bus standard;

and

      (iii) (3) "Priority communities" (to be identified by the Rhode Island DEM) are Rhode

Island communities that have high levels of ambient air pollution and high incidence of childhood

respiratory impacts.

      (e) To achieve the pressing public health and environmental goals of this act, DEM shall

identify opportunities to achieve maximize PM reductions from diesel powered heavy duty

vehicle or equipment that is owned by, operated by, or on behalf of, or leased by, or operating

under a contact to a state agency or state or regional public authority (except vehicles that are

specifically equipped for emergency response) and diesel powered waste collection and recycling

vehicles that are owned, leased, or contracted to perform the removal or transfer or municipal,

commercial or residential waste, or recycling services. No later than January 1, 2008, DEM shall

present a report to the general assembly, governor, house committee on environment and natural

resources, and the senate committee on environment and agriculture on such opportunities to

maximum PM reductions from the aforementioned fleets including legislative changes, regulatory

changes, funding sources, contract requirements, procurement requirements, and other

mechanisms that will bring about maximum PM reductions from these two priority fleets. This

report shall explore funding sources beyond CMAQ, including but not limited to Diesel

Reductions Emissions Reduction Act (DERA) funds under the Federal Energy Act.

      (f) Severability. - If any clause, sentence, paragraph, section or part of this act shall be

adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further

judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall

be confined in its operation to the clause, sentence, paragraph, section or part of this act directly

involved in the controversy in which the judgment shall have been rendered.

 

     SECTION 33. Sections 31-51-3 and 31-51-9 of the General Laws in Chapter 31-51

entitled "School Bus Safety Enforcement" are hereby amended to read as follows:

 

     31-51-3. Procedure -- Notice. -- (a) Except as expressly provided in this chapter, all

prosecutions based on evidence produced by a live digital video school bus violation detection

monitoring system shall follow the procedures established in chapter 41.1 of this title, chapter 8-

18 of the general laws and the rules promulgated by the chief magistrate of the traffic tribunal for

the hearing of civil traffic violations in the traffic tribunal. Citations may be issued by an officer

solely based on evidence obtained by use of a live digital video school bus violation detection

monitoring system. All citations issued based on evidence obtained from a live digital video

school bus violation detection monitoring system shall be issued within seven (7) days of the

violation. Notwithstanding any provisions of the general laws to the contrary, exclusive

jurisdiction to hear and decide any violation under this chapter shall be with the traffic tribunal.

      (b) It shall be sufficient to commence a prosecution based on evidence obtained from a

live digital video school bus violation detection monitoring system. A copy of the citation and

supporting documentation shall be mailed to the address of the registered owner kept on file by

the registry of motor vehicles pursuant to section 31-3-34 of the general laws. For purposes of

this section, the date of issuance shall be the date of mailing.

      (c) The officer issuing the citation shall certify under penalties of perjury that the

evidence obtained from the live digital video school bus violation detection monitoring system

was sufficient to demonstrate a violation of the motor vehicle code. Such certification shall be

sufficient in all prosecutions pursuant to this chapter to justify the entry of a default judgment

upon sufficient proof of actual notice in all cases where the citation is not answered within the

time period permitted.

      (d) The citation shall contain all the information provided for on the uniform summons

as referred to in section 31-41.1-1 of the general laws and the rules of procedure promulgated by

the chief magistrate of the traffic tribunal for the traffic tribunal, as well as the date, time and

location of the violation.

      (e) In addition to the information in the uniform summons, the following information

shall be attached to the citation as evidence:

      (i) (1) Copies of two (2) or more photographs, or microphotographs, videos, or other

recorded images taken as proof of the violation;

      (ii) (2) A signed statement by a trained law enforcement officer that, based on inspection

of recorded images and video, the motor vehicle was being operated in violation of section 31-20-

12;

      (iii) (3) A statement that recorded images are evidence of a violation of this chapter; and

      (iv) (4) A statement that the person who receives a summons under this chapter may

either pay the civil penalty in accordance with the provisions of section 31-20-12, or elect to

stand trial for the alleged violation; and

      (v) (5) A signed affidavit by a person who witnessed live the motor vehicle being

operated in violation of section 31-20-12.

 

     31-51-9. Reports. -- (a) The school department authorizing the installation of a live

digital video school bus violation detection monitoring system shall prepare an annual report

containing data on:

      (1) The number of citations issued;

      (2) The number of those violations paid;

      (3) The number of those violations found after trial or hearing;

      (4) The number of violations dismissed after trial or hearing;

      (5) The amount of revenue obtained from the live digital video school bus violation

detection monitoring system.

 

     SECTION 34. Sections 31-52-1, 31-52-3, 31-52-4 and 31-52-5 of the General Laws in

Chapter 31-52 entitled "Funeral Procession Act" are hereby amended to read as follows:

 

     31-52-1. Definitions. -- (a) "Funeral director" and "funeral establishment" shall have the

same meanings set forth in chapter 5-33.2-1 of the general laws.

     (b) "Funeral escort" means a person or entity that provides escort services for funeral

processions, including, but not limited to, law enforcement personnel and agencies.

     (c) "Funeral escort vehicle" means any motor vehicle properly equipped pursuant to this

chapter and which escorts a funeral procession.

     (d) "Funeral lead vehicle" means any motor vehicle, including a funeral hearse, properly

equipped pursuant to this chapter, leading and facilitating the movement of a funeral procession.

      (b) (e) "Funeral procession" means two (2) or more vehicles accompanying the body or

the cremated remains of a deceased person, in the daylight hours, including a funeral lead vehicle

or a funeral escort vehicle.

      (c) "Funeral lead vehicle" means any motor vehicle, including a funeral hearse, properly

equipped pursuant to this chapter, leading and facilitating the movement of a funeral procession.

      (d) "Funeral escort" means a person or entity that provides escort services for funeral

processions, including, but not limited to, law enforcement personnel and agencies.

      (e) "Funeral escort vehicle" means any motor vehicle properly equipped pursuant to this

chapter and which escorts a funeral procession.

 

     31-52-3. Driving in funeral procession. -- (a) Operators of vehicles in a funeral

procession must exercise due care when participating in a funeral procession.

      (b) A vehicle in a funeral procession shall follow the preceding vehicle in the funeral

procession as closely as is practicable and safe. Any ordinance, law, or regulation requiring that

motor vehicles be operated to allow sufficient space between them to enable another vehicle to

enter and occupy that space without danger shall not be applicable to vehicles in a funeral

procession.

      (c) The operator of a motor vehicle in a funeral procession may not drive the vehicle at a

speed greater than:

      (i) (1) Fifty-five (55) miles per hour on a highway where the posted speed limit is fifty-

five (55) miles per hour or more; or

      (ii) (2) Five (5) miles per hour below the posted speed limit on other streets or roads.

      (d) A vehicle being operated in any funeral procession must have its headlights and tail

lights illuminated.

      (e) The turn signals must be flashing simultaneously as warning lights on a vehicle that

is the first vehicle in a funeral procession and which the operator has reason to believe is the last

vehicle in the funeral procession.

 

     31-52-4. Funeral procession right-of-way. -- (a) Except as provided in subsection (d) of

this section, pedestrians and operators of all vehicles shall yield the right-of-way to any vehicle

which is part of a funeral procession being led by a funeral escort vehicle or a funeral lead

vehicle.

      (b) Whenever the funeral escort vehicle or funeral lead vehicle in a funeral procession

lawfully enters an intersection, either by reason of a traffic control device or at the direction of

law enforcement personnel, the remaining vehicles in the funeral procession may continue to

follow the funeral lead vehicle through the intersection despite any traffic control devices or

right-of-way provisions of state or local ordinances, provided the operator of each vehicle

exercises reasonable care toward any other vehicle or pedestrian on the roadway.

      (c) Except as provided in subsection (d) of this section, an operator of a funeral escort

vehicle may direct the operators of other vehicles in a funeral procession to proceed through an

intersection or to make turns or other movements despite any traffic control device. The operator

of a funeral escort vehicle may direct and control the operators of vehicles not in a funeral

procession, including those in or approaching an intersection, to stop, proceed, or make turns or

other movements without regard to a traffic control device. Funeral escort vehicles may exceed

the speed limit by fifteen (15) miles per hour when overtaking the funeral procession to direct

traffic at the next intersection.

      (d) Funeral processions shall have the right-of-way at intersections regardless of traffic

control devices, subject to the following conditions and exceptions:

      (i) (1) Operators of vehicles in a funeral procession shall yield the right-of-way to an

approaching emergency vehicle giving an audible or visible signal;

      (ii) (2) Operators of vehicles in a funeral procession shall yield the right-of-way when

directed to do so by law enforcement personnel; and

      (iii) (3) Operators of vehicles in a funeral procession must exercise due care when

participating in a funeral procession.

 

     31-52-5. Vehicles not in funeral procession. -- The operator of a vehicle that is not part

of a funeral procession may not:

      (a) (1) Drive between the vehicles forming a funeral procession while they are in motion

except when authorized to do so by law enforcement personnel or when driving an authorized

emergency vehicle emitting an audible or visible signal.

      (b) (2) Join a funeral procession to secure the right-of-way as granted by this chapter.

      (c) (3) Pass a funeral procession on a multiple lane highway on the funeral procession's

right side unless the funeral procession is in the farthest left lane.

      (d) (4) Enter an intersection, even if the operator is facing a green traffic control signal,

when a funeral procession is proceeding through a red traffic control signal at the intersection as

permitted under this chapter, unless the operator can do so without crossing the path of the

funeral procession. If the red signal changes to green while the funeral procession is within the

intersection, the operator of the vehicle facing a green signal may proceed subject to the right-of-

way of a vehicle participating in a funeral procession.

      (e) (5) Any person who willfully violates this section shall be guilty of a civil violation.

 

     SECTION 35. Section 44-5-2 of the General Laws in Chapter 44-5 entitled "Levy and

Assessment of Local Taxes" is 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 property valuation and municipal finance

in the department of 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 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 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 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 revenue.

      (e) Any levy pursuant to subsection (d) of this section in excess of the percentage

increase specified in subsection (a) or (b) 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 section 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.

 

     SECTION 36. Section 43-2-5 of the General Laws in Chapter 43-2 entitled "Publication

and Distribution of Acts" is hereby amended to read as follows:

 

     43-2-5. Distribution of copies of proceedings. -- The joint committee on legislative

services shall, as soon as possible after publication of the public laws, acts of a local and private

nature, and resolutions as provided in section 22-11-3.3, transmit bound copies to each of the

following officers, libraries, or societies. The copies shall be transmitted by the recipients to their

successors in office:

      (a) (1) One copy each to the governor, lieutenant governor, justices of the supreme,

superior, family and district courts, general treasurer, state controller, the director of each state

department, administrator of the division of public utilities and carriers, tax administrator,

director of business regulation, the several town and city clerks, the several boards of canvassers

and registration, the several probate courts where the clerk of the court is other than the city or

town clerk, the several clerks or administrators of the supreme, superior, family and district

courts, reporter of opinions of the supreme court, the several sheriffs, adjutant general, state judge

advocate general, the division of occupational safety, the library of any accredited institution of

higher education in the state of Rhode Island, Redwood Library and Athenaeum, the People's

Library, Newport, Providence Athenaeum, Providence Public Library, Pawtucket Free Public

Library, any other incorporated library in the state or any library in the state receiving state aid

that may apply for a copy, the social law library at Boston, Massachusetts, the New York Public

Library, in New York, the library of the Worcester County Bar Association, Massachusetts, the

library of the Johns Hopkins University, Maryland, the library at Cornell University, New York,

the law schools at Cambridge and Boston in Massachusetts, at New York and at Albany in New

York, at New Haven in Connecticut, the library of the University of West Virginia, in West

Virginia, the bar library in Chicago, in Illinois, the library of the law school of Georgetown

University in Washington, D.C., the state libraries of the several states, the senate committees on

judiciary, finance and commerce, housing and municipal government, the house of

representatives committees on judiciary, finance and corporations, the legislative council and the

house of representatives finance committee advisory staff, each member of the general assembly,

the associate justice of the Supreme Court of the United States assigned to the First Circuit, each

district judge of the United States for the District of Rhode Island, the United States district

attorney for the District of Rhode Island, the United States Marshal, the referee in bankruptcy for

the District of Rhode Island, and the clerk of the United States District Court;tes assigned to the

First Circuit, each district judge of the United States for the District of Rhode Island, the United

States district attorney for the District of Rhode Island, the United States Marshal, the referee in

bankruptcy for the District of Rhode Island, and the clerk of the United States District Court;

      (b) (2) Four (4) copies to the Secretary of State of the United States;

      (c) (3) Two (2) copies each to the state library, the state law library, the secretary of

state, the attorney general, the public defender, the Legal Aid Society of Rhode Island, the Rhode

Island Historical Society, the Newport Historical Society, and the Warden's Court at New

Shoreham.

      (d) (4) The secretary of state shall keep two (2) copies for the use of his or her office.

 

     SECTION 37. Sections 44-3-39 and 44-3-58 of the General Laws in Chapter 44-3

entitled "Property Subject to Taxation" are hereby amended to read as follows:

 

     44-3-39. Middletown -- Exemption of persons over the age of 65. – (a)

Notwithstanding any other provisions of a general or special law to the contrary, the town council

of the town of Middletown is authorized to fix, by ordinance or resolution, the amount of

exemptions with respect to the assessed value from local taxation on taxable real property situated

in the town, owned and occupied by any person over the age of sixty-five (65) years, whether the

real property is income-producing or not.

      (b) The exemption shall be in an amount established by the town council, including a

complete exemption, and under conditions specified by the town council including income and/or

property value limitations.

 

     44-3-58. Tax deferment of elderly persons in the town of Narragansett. – (a) The

town council of the town of Narragansett may, by ordinance, provide that the payment of all or a

portion of the property taxes on a single family dwelling, owned by and occupied as the principal

residence of persons who are sixty-five (65) years or older may be partially deferred until the

property is disposed of by reason of death of all the qualified owners, or by reason of transfer or

conveyance, provided, that any deferred taxes and interest constitute a lien against the real estate.

     (b) This act shall be voted upon by the qualified electors of the town of Narragansett

entitled to vote upon a proposition to impose a tax or for the expenditure of money at any special

or regular election held after the passage of this act. The town clerk will then certify the results to

the secretary of state. Any ordinance passed by the town council of Narragansett to provide tax

deferment pursuant to the terms of this act shall become effective upon the approval of a majority

of the electors voting on the question, vote to accept this section.

 

     SECTION 38. Sections 44-5-11.9, 44-5-29 and 44-5-43 of the General Laws in Chapter

44-5 entitled "Levy and Assessment of Local Taxes" are hereby amended to read as follows:

 

     44-5-11.9. West Warwick -- Residential real estate classification. – (a)

Notwithstanding any limitation, condition or any other provision to the contrary contained within

section 44-5-11.8, the town of West Warwick may adopt the following separate and distinct tax

classification tax-rates for each of the following classification:

      (a) (b) Classes of Property.:

      (1) Single-family homes, condominiums, residential real estate consisting of no more

than two (2) dwelling units (one of which is owner occupied), land classified as open space, and

dwellings on leased land including mobile homes;

      (2) Residential real estate containing between two (2), three (3), four (4), and five (5)

dwelling units, except for two (2) dwelling units, one of which is owner occupied;

      (3) Residential real estate containing six (6) or more dwelling units, and properties

containing partial commercial or business uses with six (6) or more dwelling units;

      (4) Commercial and industrial real estate, and residential properties containing partial

commercial or business uses, with five (5) or less dwelling units; and

      (5) Two (2) separate and distinct tax classification tax-rates for personal property

described as Class 3 and Class 4 in subsection 44-5-11.8(b)(3) and (b)(4), respectively.

 

     44-5-20.29. Property tax classification -- Lincoln -- Tax levy determination. -- (a) The

assessor and finance director shall provide to the town council a list containing the full and fair

valuation of each property class, and with the approval of the town council, annually determine

the percentage of the tax levy to be apportioned each class of property and shall annually apply

tax rates sufficient to produce the proportion of the total tax levy.

      (b) Classes of Property.

      (1) Class 1. - Residential real estate consisting of no more than five (5) dwelling units

including dwellings on leased land including mobile homes. The existing homestead exemption

authorized for residential properties shall continue in full force and effect.

      (2) Class 2. - Commercial and industrial real estate, and residential real estate of more

than five (5) dwelling units.

      (3) Class 3. - All ratable tangible personal property excluding motor vehicles and trailers.

(Notwithstanding any provisions of the contrary, the tax rates applicable to wholesale and retail

inventory within Class 3 are governed by section 44-3-29.1).

      (4) [Repealed by P.L. 2004, ch. 439, section 1; P.L. 2004, ch. 527, section 1, effective

July 1, 2005.

 

     44-5-43. Definitions. – (a) 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 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:

      (b) Average absolute deviation of assessment ratios divided by the average assessment

ratio = Russell index of inequality.

 

     SECTION 39. Section 44-5.1-2 of the General Laws in Chapter 44-5.1 entitled "Real

Estate Nonutilization Tax" is hereby amended to read as follows:

 

     44-5.1-2. Definitions. -- The following words, terms, and phrases, when used in this

chapter, have the meanings ascribed to them in this section, except in those instances where the

context clearly indicates a different meaning:

      (1) "Abutter" means a neighbor whose property touches the property in question.

      (2) "Actively marketed" means good faith efforts by the owner of the property to obtain

one or more occupants of the property. These good faith efforts may include, without limitation,

one or more of the following:(i) making substantial financial expenditures in comparison with the

value of the property; or (ii) listing the property for sale or lease, or both, with one or more real

estate brokers, for a price and on terms, or for a rental that is realistic considering the fair market

or fair market rental value of the property; or (iii) advertising, using one or more signs on the

property and at least one other medium, the availability of the property for sale or rental for a

price and on terms, or at a rental that is realistic considering the fair market value or fair rental

value of the property. Sporadic attempts to sell or lease the property during the privilege year may

be viewed as not constituting a good faith marketing effort.

      (3) "Continuously unoccupied" means any property, which is listed during the entire

privilege year as vacant in the records of a city or town's department of minimum housing.

      (4) "Development plan" means a plan to rehabilitate a vacant and abandoned property

within a set time frame for a use in conformance with the city or town's comprehensive plan.

     (5) "Nonprofit housing organization" means any organization exempt from taxation

pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. section 501(c)(3), whose

exempt purposes include the provision of affordable housing to low and moderate income

households.

      (5) (6) "Privilege year" means the twelve (12) month period corresponding to the

calendar year.

      (6) "Nonprofit housing organization" means any organization exempt from taxation

pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. section 501(c)(3), whose

exempt purposes include the provision of affordable housing to low and moderate income

households.

      (7) "Reviewing entity" means the municipal entity designated by the city or town

pursuant to section 44-5.1-3.

      (8) "Vacant and abandoned property" means any property, which is:

      (i) A building that has remained continuously unoccupied during the privilege year or a

lot, with no existing structure that is littered with trash and obviously abandoned;

      (ii) (A) In the case of property containing one or more buildings used in whole or in part

for one or more dwelling units immediately prior to the time the property became vacant, been

under continuous designation as vacant by a city's or town's department of minimum housing

during the privilege year; or

      (B) In the case of property containing one or more buildings none of which were used in

whole or in part for one or more dwelling units immediately prior to the time the property became

vacant, been under continuous citation by an agency of a city or town for violation of minimum

housing code provisions relating to the health or safety of citizens during the privilege year.

 

     SECTION 40. Section 44-9-12 of the General Laws in Chapter 44-9 entitled "Tax Sales"

is hereby amended to read as follows:

 

     44-9-12. Collector's deed -- Rights conveyed to purchaser -- Recording. -- (a) The

collector shall execute and deliver to the purchaser a deed of the land, stating the cause of sale,

the price for which the land was sold, the places where the notices were posted, the name of the

newspaper in which the advertisement of the sale was published, the residence of the grantee, and

if notice of the sale was given to the Rhode Island Housing and Mortgage Finance Corporation

and or to the department of elderly affairs under the provisions of section 44-9-10, the collector

shall include an affirmative certification as to which entity/entities received notice and the date(s)

on which each such notice was given which shall set forth in the collector's deed. The deed shall

convey the land to the purchaser, subject to the right of redemption. The conveyed title shall, until

redemption or until the right of redemption is foreclosed, be held as security for the repayment of

the purchase price, with all intervening costs, terms imposed for redemption, and charges, with

interest, and the premises conveyed, both before and after either redemption or foreclosure, shall

also be subject to and have the benefit of all easements and restrictions lawfully existing in, upon,

or over the land or appurtenant to the land. The deed is not valid unless recorded within sixty (60)

days after the sale. If the deed is recorded it is prima facie evidence of all facts essential to the

validity of the title conveyed by the deed. It shall be the duty of the collector to record the deed

within sixty (60) days of the sale and to forward said deed promptly to the tax sale purchaser. The

applicable recording fee shall be paid by the redeeming party. Except as provided, no sale shall

give to the purchaser any right to either the possession, or the rents, or profits of the land until the

expiration of one year after the date of the sale, nor shall any sale obviate or transfer any

responsibility of an owner of property to comply with any statute of this state or ordinance of any

municipality governing the use, occupancy, or maintenance or conveyance of property until the

right of redemption is foreclosed.

      (b) The rents to which the purchaser shall be entitled after the expiration of one year and

prior to redemption shall be those net rents actually collected by the former fee holder or a

mortgagee under an assignment of rents. Rents shall not include mere rental value of the land, nor

shall the purchaser be entitled to any rent for owner-occupied single-unit residential property. For

purposes of redemption, net rents shall be computed by deducting from gross rents actually

collected any sums expended directly or on behalf of the tenant from whom the rent was

collected. Such expenditure shall include utilities furnished, repairs made to the tenanted unit, and

services provided for the benefit of the tenant. However, mortgagee payments, taxes and sums

expended for general repair and renovation (i.e. capital improvements) shall not be deductible

expenses in the computation of the rent.

      (b) (c) This tax title purchaser shall not be liable for any enforcement or penalties arising

from violations of environmental or minimum housing standards prior to the expiration of one

year from the date of the tax sale, except for violations which are the result of intentional acts by

the tax sale purchaser or his or her agents.

      (c) (d) Upon the expiration of one year after the date of the sale, the tax title holder shall

be jointly and severally liable with the owner for all responsibility and liability for the property

and shall be responsible to comply with any statute of this state or ordinance of any municipality

governing the use, occupancy, or maintenance or conveyance of the property even prior to the

right of redemption being foreclosed. Nothing in this section shall be construed to confer any

liability upon a city or town, which receives tax title as a result of any bids being made for the

land offered for sale at an amount equal to the tax and charges.

      (d) (e) In the event that the tax lien is acquired by the Rhode Island Housing and

Mortgage Finance Corporation, and said corporation has paid the taxes due, title shall remain

with the owner of the property, subject to the right of the corporation to take the property in its

own name, pursuant to applicable statutes and any regulations duly adopted by the corporation.

Upon such notice by the corporation, the collector shall execute and deliver a deed to the

corporation as herein provided.

 

     SECTION 41. Section 44-19-10 of the General Laws in Chapter 44-19 entitled "Sales

and Use Taxes - Enforcement and Collection" is hereby amended to read as follows:

 

     44-19-10. Monthly returns and payments -- Monthly reports by show promoters. –

(a) Except as provided in the Streamlined Sales and Use Tax Agreement contained in Chapter 44-

18.1 the taxes imposed by chapter 18 of this title are due and payable to the tax administrator

monthly on or before the twentieth (20th) day of the month next succeeding the month for which

return is required to be made. On or before the twentieth (20th) day of each month, a return for

the previous month shall be filed with the tax administrator in a form that the tax administrator

may prescribe. For purposes of the sales tax, a return shall be filed by every person engaged in the

business of making retail sales, the gross receipts from which are required to be included in the

measure of the sales tax. The tax administrator may require the filing of a return by any person

holding a permit as provided in section 44-19-2 or 44-19-3. For purposes of the use tax, a return

shall be filed by every retailer maintaining a place of business in the state and by every person

purchasing tangible personal property, the storage, use, or other consumption of which is subject

to the use tax, who has not paid the use tax due to a retailer required to collect the tax. The return

shall be in a form, include information, and bear any signatures that the tax administrator may

require. At the time of the filing of any return required under this chapter, the taxpayer shall pay

to the tax administrator the tax due for the month covered by that return. For the purposes of the

sales tax, gross receipts from rentals, or leases of tangible personal property are reported and the

tax paid in the manner required by the tax administrator. The tax administrator for good cause

may extend, for not to exceed one month, the time for making any return or paying any amount

required to be paid under this chapter. Any person to whom an extension is granted shall pay, in

addition to the tax, interest at the annual rate prescribed by section 44-1-7 or fraction of it, from

the date on which the tax would have been due without the extension until the date of payment.

Where a taxpayer's sales and use tax liability for six (6) consecutive months has averaged less

than two hundred dollars ($200) per month, a quarterly return and remittances in lieu of a

monthly return may be made on or before the last day of July, October, January, and April of

each year for the preceding three (3) months' period when specially authorized, in writing, by the

tax administrator under those rules and regulations as may be prescribed by the administrator. In

the event that a taxpayer filing his or her return on a quarterly basis, as provided in this section,

becomes delinquent in either the filing of his or her return or the payment of the taxes due, or in

the event that the liability of a taxpayer, who has been authorized to file his or her return and to

make payments on a quarterly basis, exceeds six hundred dollars ($600) in sales and use taxes for

any subsequent quarter, or in the event that the tax administrator determines that any quarterly

filing of return and payment of tax due thereon would unduly jeopardize the proper

administration of the provisions of this chapter or of chapter 18 of this title, the tax administrator

may, at any time, revoke the authorization, in which case the taxpayer will then be required to file

his or her return and to pay the tax due in the manner provided for in this section.

      (b) Every promoter shall file a report monthly, within twenty (20) days after the end of

the prior month, for each show which the promoter operates, listing the date and place of each

show and the name, address, and permit number, by show, of every person whom the promoter

permitted to display or sell tangible personal property, services, or food and drink. Every person

shall furnish the promoter of any show at which the person displays or sells tangible personal

property, services, or food and drink, information for the promoter's use in filing the report

required by this subsection.

 

     SECTION 42. Section 44-20-51.3 of the General Laws in Chapter 44-20 entitled

"Cigarette Tax" is hereby amended to read as follows:

 

     44-20-51.3. Counterfeit cigarettes. – (a) Notwithstanding any other provision of law,

the sale or possession for sale of counterfeit cigarettes by a manufacturer, importer, distributor, or

dealer shall result in the seizure of the product and related machinery by the administrator or any

law enforcement agency and shall be punishable as follows:

      (a) (1) A knowing violation involving a total quantity of less than two (2) cartons of

cigarettes shall be punishable by a fine of one thousand dollars ($1,000) or five (5) times the retail

value of the cigarettes involved, whichever is greater, or imprisonment not to exceed five (5)

years, or both.

      (b) (2) A subsequent knowing violation involving a total quantity of less than two (2)

cartons of cigarettes shall be punishable by a fine of five thousand dollars ($5,000) or five (5)

times the retail value of the cigarettes involved, whichever is greater, or imprisonment not to

exceed five (5) years, or both, and shall also result in the revocation by the administrator of the

manufacturer, importer, distributor, or dealer license.

      (c) (3) A first knowing violation involving a total quantity of two (2) cartons of

cigarettes or more shall be punishable by a fine of two thousand dollars ($2,000) or five (5) times

the retail value of the cigarettes involved, whichever is greater, or imprisonment not to exceed

five (5) years, or both.

      (d) (4) A subsequent knowing violation involving a quantity of two (2) cartons of

cigarettes or more shall be punishable by a fine of fifty thousand dollars ($50,000) or five (5)

times the retail value of the cigarettes involved, whichever is greater, or imprisonment not to

exceed five (5) years, or both, and shall also result in the revocation by the administrator of the

manufacturer, importer, distributor, or dealer license.

     (b) For purposes of this section, counterfeit cigarettes includes cigarettes that have false

manufacturing labels or packages of cigarettes bearing counterfeit tax stamps. Any counterfeit

cigarettes seized by the administrator shall be destroyed.

 

     SECTION 43. Section 44-20.1-1 of the General Laws in Chapter 44-20.1 entitled

"Delivery Sales of Cigarettes" is hereby amended to read as follows:

 

     44-20.1-1. Definitions. -- For purposes of this chapter:

     (1) "Administrator" means the tax administrator.

     (1) (2) "Adult" means a person who is at least the legal minimum purchase age.

     (2) (3) "Consumer" means an individual who is not licensed as a wholesaler or retailer

pursuant to the provisions of section 44-20-2.

     (3) (4) "Delivery sale" means any sale of cigarettes to a consumer in the state where

either:

     (i) The purchaser submits the order for such sale by means of a telephonic or other

method of voice transmission, the mail or any other delivery service, or the Internet or other

online service; or

     (ii) The cigarettes are delivered by use of the mails or other delivery service. A sale of

cigarettes shall be a delivery sale regardless of whether the seller is located within or without the

state. A sale of cigarettes not for personal consumption to a person who is a wholesale dealer or a

retail dealer shall not be a delivery sale.

      (4) (5) "Delivery service" means any person who is engaged in the commercial delivery

of letters, packages, or other containers.

      (5) "Administrator" means the tax administrator.

      (6) "Legal minimum purchase age" means the minimum age at which an individual may

legally purchase cigarettes in the state.

      (7) "Mail" or "mailing" means the shipment of cigarettes through the United States

Postal Service.

      (8) "Person" means the same as that term is defined in section 44-20-1.

      (9) "Shipping container" means bills of lading, airbills, or any other documents used to

evidence the undertaking by a delivery service to deliver letters, packages, or other containers.

 

     SECTION 44. Section 44-20.2-1 of the General Laws in Chapter 44-20.2 entitled "Little

Cigar Tax" is hereby amended to read as follows:

 

     44-20.2-1. Definitions. -- Whenever used in this chapter, unless the context requires

otherwise:

      (1) "Administrator" means the tax administrator;

      (2) "Little cigars" means and includes any roll, made wholly or in part of tobacco,

irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or

mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco

wrapped in leaf tobacco or any substance containing tobacco paper or any other material, except

where such wrapper is wholly or in greater part made of tobacco and such roll weighs over three

(3) pounds per thousand (1,000);

      (3) (2) "Dealer" means any person whether located within or outside of this state, who

sells or distributes little cigars to a consumer in this state;

      (4) (3) "Distributor" means any person:

      (A) (i) Whether located within or outside of this state, other than a dealer, who sells or

distributes little cigars within or into this state. Such term shall not include any little cigar

manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C.

section 5712, if such person sells or distributes little cigars in this state only to licensed

distributors, or to an export warehouse proprietor or another manufacturer with a valid permit

under 26 U.S.C. section 5712;

      (B) (ii) Selling little cigars directly to consumers in this state by means of at least

twenty-five (25) little cigar vending machines.

      (5) (4) "Importer" means any person who imports into the United States, either directly

or indirectly, a finished little cigar for sale or distribution;

      (6) (5) "Licensed" when used with reference to a manufacturer, importer, distributor or

dealer, means only those persons who hold a valid and current license issued under section 44-20-

2 for the type of business being engaged in. When the term "licensed" is used before a list of

entities, such as "licensed manufacturer, importer, wholesale dealer, or retailer dealer," such term

shall be deemed to apply to each entity in such list;

     (6) "Little cigars" means and includes any roll, made wholly or in part of tobacco,

irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or

mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco

wrapped in leaf tobacco or any substance containing tobacco paper or any other material, except

where such wrapper is wholly or in greater part made of tobacco and such roll weighs over three

(3) pounds per thousand (1,000);

      (7) "Manufacturer" means any person who manufactures, fabricates, assembles,

processes, or labels a finished little cigar;

      (8) "Person" means any individual, firm, fiduciary, partnership, corporation, trust, or

association, however formed;

      (9) "Place of business" means and includes any place where little cigars are sold or

where little cigars are stored or kept for the purpose of sale or consumption, including any vessel,

vehicle, airplane, train, or vending machine;

      (10) "Sale" or "Sell" includes and applies to gifts, exchanges, and barter;

      (11) "Snuff" means any finely cut, ground, or powdered tobacco that is not intended to

be smoked;

      (12) "Stamp" means the impression, device, stamp, label, or print manufactured, printed,

or made as prescribed by the administrator to be affixed to packages of little cigars, as evidence

of the payment of the tax provided by this chapter or to indicate that the little cigars are intended

for a sale or distribution in this state that is exempt from state tax under the provisions of state

law and also includes impressions made by metering machines authorized to be used under the

provisions of this chapter.

 

     SECTION 45. Section 44-33.3-3 of the General Laws in Chapter 44-33.3 entitled

"Newport Senior Resident Property Tax Services Credit Program" is hereby amended to read as

follows:

 

     44-33.3-3. Ownership. – (a) The taxpayer or taxpayers applying for the senior resident

property tax service credit program must be the owner of the respective real estate to which the

credit will apply.

      (b) If the property is held in trust, the beneficiary or beneficiaries of the trust must be the

taxpayer or taxpayers applying for the senior resident property tax service credit program.

 

     SECTION 46. Section 44-62-2 of the General Laws in Chapter 44-62 entitled "Tax

Credits for Contributions to Scholarship Organizations" is hereby amended to read as follows:

 

     44-62-2. Qualification of scholarship organization. -- A scholarship organization must

certify annually by December 31st to the division of taxation that the organization is eligible to

participate in the program in accordance with criteria as defined below:

      (a) "Scholarship organization" means a charitable organization in this state that is exempt

from federal taxation under section 501(c)(3) of the internal revenue code, and that allocates at

least ninety percent (90%) of its annual revenue through a scholarship program for tuition

assistance grants to eligible students to allow them to attend any qualified school of their parents'

choice represented by the scholarship organization.

      (b) "Scholarship program" means a program to provide tuition assistance grants to

eligible students to attend a nonpublic school located in this state. A scholarship program must

include an application and review process for the purpose of making these grants only to eligible

students. The award of scholarships to eligible students shall be made without limiting

availability to only students of one school.

      (c) (1) "Eligible student" means a school-age student who is registered in a qualified

school and is a member of a household with an annual household income of not more than two

hundred fifty percent (250%) of the federal poverty guidelines as published in the federal register

by the United States department of health and human services.

      (d) (2) "Household" means one or more persons occupying a dwelling unit and living as

a single nonprofit housekeeping unit. Household does not mean bona fide lessees, tenants, or

roomers and borders on contract.

      (e) (3) "Household income" means all income received by all persons of a household in a

calendar year while members of the household.

      (f) (4) "Income" means the sum of federal adjusted gross income as defined in the

internal revenue code of the United States, 26 U.S.C. section 1 et seq., and all nontaxable income

including, but not limited to, the amount of capital gains excluded from adjusted gross income,

alimony, support money, nontaxable strike benefits, cash public assistance and relief (not

including relief granted under this chapter), the gross amount of any pension or annuity

(including Railroad Retirement Act (see 45 U.S.C. section 231 et seq.) benefits, all payments

received under the federal Social Security Act, 42 U.S.C. section 301 et seq., state unemployment

insurance laws, and veterans' disability pensions (see 38 U.S.C. section 301 et seq.), nontaxable

interest received from the federal government or any of its instrumentalities, workers'

compensation, and the gross amount of "loss of time" insurance. It does not include gifts from

nongovernmental sources, or surplus foods or other relief in kind supplied by a public or private

agency.

      (g) (5) "Qualified school" means a nonpublic elementary or secondary school that is

located in this state and that satisfies the requirements prescribed by law for nonpublic schools in

this state.

     (6) "Scholarship organization" means a charitable organization in this state that is exempt

from federal taxation under section 501(c)(3) of the internal revenue code, and that allocates at

least ninety percent (90%) of its annual revenue through a scholarship program for tuition

assistance grants to eligible students to allow them to attend any qualified school of their parents'

choice represented by the scholarship organization.

     (7) "Scholarship program" means a program to provide tuition assistance grants to

eligible students to attend a nonpublic school located in this state. A scholarship program must

include an application and review process for the purpose of making these grants only to eligible

students. The award of scholarships to eligible students shall be made without limiting

availability to only students of one school.

      (h) (8) "School-age student" means a child at the earliest admission age to a qualified

school's kindergarten program or, when no kindergarten program is provided, the school's earliest

admission age for beginners, until the end of the school year, the student attains twenty-one (21)

years of age or graduation from high school whichever occurs first.

      (i) (9) Designation. - A donation to a scholarship organization, for which the donor

receives a tax credit under this provision, may not be designated to any specific school or student

by the donor.

      (j) (10) Nontaxable income. - A scholarship received by an eligible student shall not be

considered to be taxable income.

 

     SECTION 47. Section 44-65-2 of the General Laws in Chapter 44-65 entitled "Imaging

Services Surcharge" is hereby amended to read as follows:

 

     44-65-2. Definitions. -- The following words and phrases as used in this chapter have the

following meaning:

      (1) "Administrator" means the tax administrator within the department of administration.

      (2) "Gross patient revenue" means the gross amount received on a cash basis by a

provider from all income derived from the provision of imaging services to patients. Charitable

contributions, fundraising proceeds, and endowment support shall not be considered as "gross

patient revenue."

     (3) "Imaging services" means and includes all the professional and technical components

of x-ray, ultrasound (including echocardiography), computed tomography (CT), magnetic

resonance imaging (MRI), positron emission tomography (PET), positron emission

tomography/computed tomography (PET/CT), general nuclear medicine, and bone densitometry

procedures.

     (3) (4) "Net patient services revenue" means the charges related to patient care services

less (i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual

allowances.

      (4) "Imaging services" means and includes all the professional and technical components

of x-ray, ultrasound (including echocardiography), computed tomography (CT), magnetic

resonance imaging (MRI), positron emission tomography (PET), positron emission

tomography/computed tomography (PET/CT), general nuclear medicine, and bone densitometry

procedures.

      (5) "Person" means any individual, corporation, company, association, partnership, joint

stock association, and the legal successor thereof.

      (6) "Provider" means any person who furnishes imaging services for the purposes of

patient diagnosis, assessment or treatment, excluding any person licensed as a hospital or a

rehabilitation hospital center or a not-for-profit organization ambulatory care facility, pursuant to

the provisions of chapter 17 of title 23 of the Rhode Island general laws, as amended or not

performing more than two hundred (200) radiological procedures per month. Further, the term

"provider" shall not apply to any person subject to the provisions of chapter 64 of title 44 or to

any person licensed in the state of Rhode Island as a dentist or a podiatrist or a veterinarian.

      (7) "Surcharge" means the assessment imposed upon net patient revenue pursuant to this

chapter.

 

     SECTION 48. This act shall take effect upon passage.

     

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LC01752/SUB A/2

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