ARTICLE 16 AS AMENDED

 

RELATING TO MUNICIPALITIES

 

     SECTION 1. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled “Video

Lottery Terminal” is hereby amended to read as follows:

 

     42-61.2-7. Division of revenue.-- (a) Notwithstanding the provisions of § 42-61-15, the

allocation of net terminal income derived from video lottery games is as follows:

     (1) For deposit in the general fund and to the state lottery division fund for administrative

purposes: Net terminal income not otherwise disbursed in accordance with subdivisions (a)(2) –

(a)(6) herein;

     (i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one

percent (0.19%) up to a maximum of twenty million dollars ($20,000,000) shall be equally

allocated to the distressed communities as defined in § 45-13-12 provided that no eligible

community shall receive more than twenty-five percent (25%) of that community's currently

enacted municipal budget as its share under this specific subsection. Distributions made under

this specific subsection are supplemental to all other distributions made under any portion of

general laws § 45-13-12. For the fiscal year ending June 30, 2008 distributions by community

shall be identical to the distributions made in the fiscal year ending June 30, 2007 and shall be

made from general appropriations. For the fiscal year ending June 30, 2009, the total state

distribution shall be the same total amount distributed in the fiscal year ending June 30, 2008 and

shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total

state distribution shall be the same total amount distributed in the fiscal year ending June 30,

2009 and shall be made from general appropriations, provided however that $784,458 of the total

appropriation shall be distributed equally to each qualifying distressed community. For each of

the fiscal years ending June 30, 2011, and June 30, 2012, and June 30, 2013 seven hundred

eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall

be distributed equally to each qualifying distressed community.

      (ii) Five one hundredths of one percent (0.05%) up to a maximum of five million dollars

($5,000,000) shall be appropriated to property tax relief to fully fund the provisions of § 44-33-

2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum

amount to the nearest five dollar ($5.00) increment within the allocation until a maximum credit

of five hundred dollars ($500) is obtained. In no event shall the exemption in any fiscal year be

less than the prior fiscal year.

     (iii) One and twenty-two one hundredths of one percent (1.22%) to fund § 44-34.1-1,

entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998", to the maximum

amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event

shall the exemption in any fiscal year be less than the prior fiscal year.

      (iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent

(0.10%) to a maximum of ten million dollars ($10,000,000) for supplemental distribution to

communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of

general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008

distributions by community shall be identical to the distributions made in the fiscal year ending

June 30, 2007 and shall be made from general appropriations. For the fiscal year ending June 30,

2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010 and thereafter,

funding shall be determined by appropriation.

     (2) To the licensed video lottery retailer:

     (a)(i) Prior to the effective date of the NGJA Master Contract, Newport Jai Ali twenty-six

percent (26%) minus three hundred eighty four thousand nine hundred ninety-six dollars

($384,996);

     (ii) On and after the effective date of the NGJA Master Contract, to the licensed video

lottery retailer who is a party to the NGJA Master Contract, all sums due and payable under said

Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars

($384,996).

     (b)(i) Prior to the effective date of the UTGR Master Contract, to the present licensed

video lottery retailer at Lincoln Park which is not a party to the UTGR Master Contract, twenty-

eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven

thousand six hundred eighty-seven dollars ($767,687);

     (ii) On and after the effective date of the UTGR Master Contract, to the licensed video

lottery retailer who is a party to the UTGR Master Contract, all sums due and payable under said

Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars

($767,687).

     (3)(i) To the technology providers who are not a party to the GTECH Master Contract as

set forth and referenced in Public Law 2003, Chapter 32, seven percent (7%) of the net terminal

income of the provider's terminals; in addition thereto, technology providers who provide

premium or licensed proprietary content or those games that have unique characteristics such as

3D graphics, unique math/game play features or merchandising elements to video lottery

terminals may receive incremental compensation, either in the form of a daily fee or as an

increased percentage, if all of the following criteria are met:

     (A) A licensed video lottery retailer has requested the placement of premium or licensed

proprietary content at its licensed video lottery facility;

     (B) The division of lottery has determined in its sole discretion that the request is likely to

increase net terminal income or is otherwise important to preserve or enhance the competiveness

of the licensed video lottery retailer;

     (C) After approval of the request by the division of lottery, the total number of premium

or licensed propriety content video lottery terminals does not exceed ten percent (10%) of the

total number of video lottery terminals authorized at the respective licensed video lottery retailer;

and

     (D) All incremental costs are shared between the division and the respective licensed

video lottery retailer based upon their proportionate allocation of net terminal income. The

division of lottery is hereby authorized to amend agreements with the licensed video lottery

retailers, or the technology providers, as applicable, to effect the intent herein.

     (ii) To contractors who are a party to the Master Contract as set forth and referenced in

Public Law 2003, Chapter 32, all sums due and payable under said Master Contract;

     (iii) Notwithstanding paragraphs (i) and (ii) above, there shall be subtracted

proportionately from the payments to technology providers the sum of six hundred twenty-eight

thousand seven hundred thirty-seven dollars ($628,737);

     (4) To the city of Newport one and one hundredth percent (1.01%) of net terminal income

of authorized machines at Newport Grand except that effective November 9, 2009 until June 30,

2012, the allocation shall be one and two tenths percent (1.2%) of net terminal income of

authorized machines at Newport Grand for each week the facility operates video lottery games on

a twenty-four (24) hour basis for all eligible hours authorized and to the town of Lincoln one and

twenty-six hundredths percent (1.26%) of net terminal income of authorized machines at Lincoln

Park except that effective November 9, 2009 until June 30, 2012, the allocation shall be one and

forty-five hundredths percent (1.45%) of net terminal income of authorized machines at Lincoln

Park for each week the facility operates video lottery games on a twenty-four (24) hour basis for

all eligible hours authorized; and

     (5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net

terminal income of authorized machines at Lincoln Park up to a maximum of ten million dollars

($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of a

Tribal Development Fund to be used for the purpose of encouraging and promoting: home

ownership and improvement, elderly housing, adult vocational training; health and social

services; childcare; natural resource protection; and economic development consistent with state

law. Provided, however, such distribution shall terminate upon the opening of any gaming facility

in which the Narragansett Indians are entitled to any payments or other incentives; and provided

further, any monies distributed hereunder shall not be used for, or spent on previously contracted

debts; and

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

     (7) Payments into the state's general fund specified in subdivisions (a)(1) and (a)(6) shall

be made on an estimated monthly basis. Payment shall be made on the tenth day following the

close of the month except for the last month when payment shall be on the last business day.

      (b) Notwithstanding the above, the amounts payable by the Division to UTGR related to

the Marketing Program shall be paid on a frequency agreed by the Division, but no less

frequently than annually.

     (c) Notwithstanding anything in this chapter 61.2 of this title 42 to the contrary, the

Director is authorized to fund the Marketing Program as described above in regard to the First

Amendment to the UTGR Master Contract.

     (d) Notwithstanding the above, the amounts payable by the Division to Newport Grand

related to the Marketing Program shall be paid on a frequency agreed by the Division, but no less

frequently than annually.

     (e) Notwithstanding anything in this chapter 61.2 of this title 42 to the contrary, the

Director is authorized to fund the Marketing Program as described above in regard to the First

Amendment to the Newport Grand Master Contract.

 

     SECTION 2. Section 45-13-12 of the General Laws in Chapter 45-13 entitled “Distressed

communities relief fund” is hereby amended to read as follows:

 

     45-13-12. Distressed communities relief fund. -- (a) There is established a fund to

provide state assistance to those Rhode Island cities and towns which have the highest property

tax burdens relative to the wealth of taxpayers.

     (b) Establishment of indices. Four (4) indices of distress shall be established to determine

eligibility for the program. Each community shall be ranked by each distress index and any

community which falls into the lowest twenty percent (20%) of at least three (3) of the four (4)

indices shall be eligible to receive assistance. The four (4) indices are established as follows:

     (1) Percent of tax levy to full value of property. This shall be computed by dividing the

tax levy of each municipality by the full value of property for each municipality. For the 1990-91

fiscal year, tax levy and full value shall be as of the assessment date December 31, 1986.

     (2) Per capita income. This shall be the most recent estimate reported by the U.S.

Department of Commerce, Bureau of the Census.

     (3) Percent of personal income to full value of property. This shall be computed by

multiplying the per capita income above by the most recent population estimate as reported by the

U.S. Department of Commerce, Bureau of the Census, and dividing the result by the full value of

property.

     (4) Per capita full value of property. This shall be the full value of property divided by

the most recent estimate of population by the U.S. Department of Commerce, Bureau of the

Census.

     (c) Distribution of funds. Funds shall be distributed to each eligible community on the

basis of the community's tax levy relative to the total tax levy of all eligible communities. For the

fiscal year 1990-91, the reference year for the tax levy shall be the assessment date of December

31, 1988. For each fiscal year thereafter, except for fiscal year 2007-2008, the reference year and

the fiscal year shall bear the same relationship. For the fiscal year 2007-2008 the reference year

shall be the same as for the distributions made in fiscal year 2006-2007.

     Any newly qualifying community shall be paid fifty percent (50%) of current law

requirements the first year it qualifies. The remaining fifty percent (50%) shall be distributed to

the other distressed communities proportionately. When any community falls out of the distressed

community program, it shall receive a one-time payment of fifty percent (50%) of the prior year

requirement exclusive of any reduction for first year qualification. The community shall be

considered a distressed community in the fall-out year.

     (d) Appropriation of funds. The state of Rhode Island shall appropriate funds in the

annual appropriations act to support this program. For each of the fiscal years ending June 30,

2011, and June 30, 2012, and June 30, 2013 seven hundred eighty-four thousand four hundred

fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each

qualifying distressed community.

     (e) Payments. Payments shall be made to eligible communities each March equal to one

half of the appropriated amount and each August equal to one half of the appropriated amount.

 

     SECTION 3. Section 45-65-6 of the General Laws in Chapter 45-65 entitled “Retirement

Security Act for Locally Administered Pension Funds” is hereby amended to read as follows:

 

     45-65-6. Certification and notice requirements. -- (1) Every municipality that

maintains a locally administered plan shall submit its initial annual actuarial valuation study to

the study commission created herein under § 45-64-8 on or before April 1, 2012, and for each

plan year ending on or after December 31, 2012, within six (6) months of completing such plan

year. The initial actuarial experience study shall be submitted to the study commission on or

before April 1, 2012, and subsequent actuarial experience studies must be submitted to the study

commission no less frequently than once every three (3) years.

     (2) In any case in which an actuary certifies that a locally administered plan is in critical

status for a plan year, the municipality administering such a plan shall, not later than thirty (30)

business days following the certification, provide notification of the critical status to the

participants and beneficiaries of the plan and to the general assembly, the governor, the general

treasurer, the director of revenue, and the auditor general. The notification shall also be posted

electronically on the general treasurer's website. Within one hundred eighty (180) days of sending

the critical status notice, the municipality shall submit to the study commission a reasonable

alternative funding improvement plan to emerge from critical status.

     (3) The state shall reimburse every municipality for fifty percent (50%) of the cost of

undertaking its annual actuarial valuation study, which is due on April 1, 2012.

     (4) Notwithstanding any other law to the contrary, the funding improvement plans and

actuarial valuation studies submitted pursuant to this section shall be public records.

 

     SECTION 4. This article shall take effect upon passage.