It is enacted by the General Assembly as follows

ARTICLE 1     MAKING APPROPRIATIONS IN SUPPORT OF FY 1998                       
ARTICLE 2     RELATING TO THE REFUNDING BOND AUTHORITY                          
ARTICLE 3     SALES AND USE TAX - DEPCO                                         
ARTICLE 4     AUTHORIZING THE STATE TO BORROW IN                               
              ANTICIPATION OF RECEIPTS FROM TAXES                               
ARTICLE 5     1997 CAPITAL DEVELOPMENT PROGRAM                                  
ARTICLE 6     RELATING TO THE COMPENSATION OF BOARD MEMBERS                     
ARTICLE 7     RELATING TO GASOLINE TAX                                          
ARTICLE 8     RELATING TO HOSPITAL LICENSING FEES                               
ARTICLE 9     RELATING TO REVISED APPROPRIATION                                 
ARTICLE 10    RELATING TO THE DEPARTMENT OF CORRECTIONS                         
ARTICLE 11    RELATING TO THE RESOURCE RECOVERY CORPORATION                     
ARTICLE 12    RELATING TO CIGARETTE TAX                                         
ARTICLE 13    RELATING TO MUTUEL BETTING AND LICENSE FEES                       
ARTICLE 14    RELATING TO THE INVESTMENT TAX CREDIT                             
ARTICLE 15    RELATING TO TAX INCENTIVES FOR RESEARCH AND                       
              DEVELOPMENT                                                       
ARTICLE 16    RELATING TO TRUCK REGISTRATION                                    
ARTICLE 17    RELATING TO IN HOME SERVICES TO THE ELDERLY                       
ARTICLE 18    RELATING TO THE COUNCIL ON THE ARTS                               
ARTICLE 19    RELATING TO THE ROGER WILLIAMS RESERVE FUND                       
ARTICLE 20    RELATING TO THE CONVENTION CENTER AUTHORITY                       
ARTICLE 21    RELATING TO UNCOMPENSATED CARE                                    
ARTICLE 22    RELATING TO GENERAL PUBLIC ASSISTANCE                             
ARTICLE 23    NURSING FACILITY PROVIDER ASSESSMENT ACT                          
ARTICLE 24    RELATING TO PUBLIC DRINKING WATER PROTECTION                      
ARTICLE 25    RELATING TO THE BOARDS FOR DESIGN PROFESSIONALS
ARTICLE 26    RELATING TO STATE AID                                             
ARTICLE 27    RELATING TO MINORITY BUSINESS ENTERPRISES                        
ARTICLE 28    RELATING TO THE DIVISION OF DRUG CONTROL                          
ARTICLE 29    RELATING TO PERSONAL INCOME TAX                                   
ARTICLE 30    RELATING TO PROPERTY TAX RELIEF                                   
ARTICLE 31    RELATING TO EDUCATION AID                                         
ARTICLE 32    RELATING TO THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT                                            
ARTICLE 33    RELATING TO AUCTIONEERS                                           
ARTICLE 34    RELATING TO HUMAN SERVICES                                        
ARTICLE 35    RELATING TO TAXATION OF BEVERAGES                                 
ARTICLE 36    RELATING TO THE BRIDGE AND TURNKPIKE AUTHORITY                                                         
ARTICLE 37    RELATING TO TIRE REMEDIATION                                      
ARTICLE 38    RELATING TO TAX EXPENDITURE REPORTING                             
ARTICLE 39    UNDERGROUND STORAGE TANK
ARTICLE 40    EFFECTIVE DATE                                                    

SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in this act, the following general revenue amounts are hereby appropriated out of any money in the treasury not otherwise appropriated to be expended during the fiscal year ending June 30, 1998. The amounts identified for federal funds and restricted receipts shall be made available pursuant to section 42-41 and 34-4-22 of the General Laws. For the purposes and functions hereinafter mentioned, and the state controller is hereby authorized and directed to draw his orders upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by her of properly authenticated vouchers.

SECTION 2. Money in the treasury as referred to and as appropriatedas general revenues in Section 1 of this Article is defined to be the aggregate of estimated general revenue, general revenue receivables, other financing sources and available free surplus in the general fund, in the aggregate amount of $1,844,188,334.

SECTION 3. From the appropriation for contingency shall be paid such sums as may be required at the discretion of the Governor and the Director of Administration to fund expenditures for which appropriations may not exist. Such contingency funds may also be used for expenditures in the several departments and agencies where appropriations are insufficient, or where such requirements are due to unforeseen conditions or are non-recurring items of an unusual nature. Said appropriations may also be used for the payment of bills incurred due to emergencies or to any offen se against public peace and property, in accordance with the provisions of Titles 11 and 45 of the General Laws of 1956, as amended. All expenditures and transfers from this account shall be approved by the Director of Administration and the Governor.

SECTION 4. Upon the transfer of any function of a department or agency to another department or agency, the governor is hereby authorized by means of executive order to transfer or reallocate, in whole or in part, the appropriations and the full time equivalent limits affected thereby.

SECTION 5. The reimbursement of any state department or agency for the cost of work or services performed for any other department or agency is hereby authorized, subject to regulations promulgated by the Director of Administration.

SECTION 6. The General Assembly may provide a written "statement of legislative intent" signed by the chairperson of the House Finance Committee and by the chairperson of the Senate Finance Committee to show the intended purpose of the appropriations contained in section 1 of this article. The statement of legislative intent shall be kept on file in the House Finance Committee and in the Senate Finance Committee.

At least twenty (20) days prior to the issuance of a grant or the release of funds, which grant or funds are listed on the legislative letter of intent, all department, agency and corporation directors, shall notify in writing the chairperson of the House Finance Committee and the chairperson of the Senate Finance Committee of the approximate date the funds are to be released or granted.

SECTION 7. Appropriation for Temporary Disability Insurance Administration -- There is hereby appropriated pursuant to sections 28-39-5 and 28-39-8 of the general laws all funds required to be disbursed for the benefit payments from the Temporary Disability Insurance Fund and Temporary Disability Insurance Reserve Fund for the fiscal year ending June 30, 1998.

SECTION 8. Appropriation of Unemployment Insurance and Training Funds -- There is hereby appropriated pursuant to section 28-42-19 of the general laws all funds required to be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 1998.

SECTION 9. Appropriation of University and College Funds -- there is hereby appropriated pursuant to section 16-59-9 of the Rhode Island general laws relating to the appropriation of funds by the General Assembly for higher education, and section 16-59-18 of the general laws relating to receipts from sources other than appropriations, any funds received by the Board of Governors for Higher Education for the fiscal year ending June 30, 1998 payable out of the University and College Funds.

SECTION 10. Section 35-3-16 of the General Laws in Chapter 35-3 entitled "State Budget" is hereby repealed in its entirety.

{DEL 35-3-16. Reduction or suspension of appropriations to maintain balanced budget. -- DEL} {DEL At any time during the fiscal year, upon notification by the budget officer that it is indicated that actual revenue receipts or resources will not equal the original estimates upon which appropriations were based or that it is indicated that spending will exceed appropriations, the governor, for the purpose of maintaining a balanced budget, shall have the power to reduce or suspend appropriations for any or all departments or subdivisions thereof, excepting the general assembly, legislative agencies and legislative committees and commissions, and at least ten (10) business day prior to taking action to reduce or suspend or otherwise withhold appropriations, the governor shall thereupon notify , in writing, the speaker of the house, senate majority leader and the chairperson of the house and senate finance committees, The said writing shall state specifically the action to be taken and the specific reason which necessitate the action. DEL}

SECTION 11. Appropriation of Rhode Island Telecommunications Authority Funds -- There is hereby appropriated pursuant to section 16-61 -3 of the Rhode Island general laws relating to the appropriation of funds by the General Assembly for educational television, and section 16-61-6 of the general laws relating to receipts from sources other than appropriations, any funds received by the Rhode Island Public Telecommunications Authority for the fiscal year ending June 30, 1998 payable out of the Rhode Island Public Telecommunications Authority Fund. On the order of the director of administration, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums or portions thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

SECTION 12. Section 35-16-2 of the General Laws in Chapter 35-16 entitled "Revenue Estimating Conference" is hereby amended to read as follows:

35-16-2. Meetings. -- (a) The principals of the R.E.C. shall meet within the first ten (10) days of May, {DEL October DEL} and {DEL December DEL} {ADD November ADD} of each year.

(b) The primary purpose of regularly scheduled conferences is to forecast revenue estimates and review current revenue collections under current tax law. The conference principals can agree, however, to address special legislation or special topics.

(c) Prior to each revenue estimating conference, the principals will determine the documentation and information necessary to support that conference.

(d) No votes will be taken in the revenue estimating conferences.

These are truly consensus conferences and all principals must agree and are bound to the conference recommendations. The first meeting shall take place in September, 1990.

SECTION 13. Section 35-17-2 of the General Laws in chapter 35-17 entitled "Medical Assistance and Public Assistance Caseload Estimating Conference" is hereby amended to read as follows:

35-17-2. Meetings. -- (A) The principals of the C.E.C. shall meet within the first ten (10) days of May, {DEL October DEL} and {DEL December DEL} {ADD November ADD} of each year.

(B) The primary purpose of regularly scheduled conferences is to forecast medical assistance and public assistance caseloads. The conference principals can agree, however, to address special legislation or special topics.

(C) Prior to each caseload estimating conference, the principals will determine the documentation and information necessary to support that conference.

(D) No votes will be taken in the caseload estimating conferences.

These are truly consensus conferences and all principals must agree and are bound to the conference recommendations.

SECTION 14. Section 35-3-4 of the general laws in chapter 35-3 entitled "State Budget" is hereby amended to read as follows:

35-3-4. Estimates submitted by department heads. -- {ADD (a) ADD} On or before the first day of October in each year, each head of a department of the state government, not including the general assembly or the judiciary, shall assemble, correlate, and revise, with power to increase or decrease, the estimates for expenditures and requests for appropriations for the next ensuing fiscal year of each of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included within his or her department, and, after such revision, shall prepare an itemized departmental estimate of the appropriations necessary to meet the financial needs of the department, including a statement in detail of all moneys for which any general or special appropriation is desired at the ensuing session of the general assembly. The estimate shall be in such form, and in such number of copies, and with such explanation as the budget officer may require, and, on or before the first day of October in each year, shall be submitted to the governor through the budget officer of the department of administration. The budget officer shall provide copies to the house fiscal advisor and senate fiscal advisor.

{ADD (b) The estimates shall also include a supplemental presentation of estimates of expenditures for information resources and information technologies as defined in section 29-8-2 of the Rhode Island General Laws, regardless of source of financing. The estimate shall include a detailed listing and explanation of expenses and the source of funds and shall be in such form, and in such number of copies, and with such explanation as the budget officer may require. Copies shall be provided directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island Information Resources Management Board.ADD}

SECTION 15. Departments and agencies listed below may not exceed the number of full time equivalent (FTE) positions shown below in any pay period. Full time equivalent positions do not include seasonal or intermittent positions whose scheduled period of employment does not exceed twenty-six consecutive weeks or whose scheduled hours do not exceed nine hundred and twenty-five (925) hours, excluding overtime, in a one-year period.

Provided, however, that the Governor, Speaker of the House of Representatives and the Majority Leader of the Senate may authorize an adjustment to any limitation. {ADD Prior to the authorization, the State Budget Officer shall make a detailed written recommendation to the Governor, the Speaker of the House, and the Senate Majority Leader.ADD} A copy of the recommendation and authorization to adjust shall be transmitted to the chairman of the House Finance Committee, Senate Finance Committee, the House Fiscal Advisor and the Senate Fiscal Advisor.

SECTION 16. Each line appearing in section 1 of this article shall constitute an appropriation.

SECTION 17. Section 35-3-20.1 of the general laws in Chapter 35-3 entitled "State Budget" is hereby amended to read as follows:

35-3-20.1. Limitation on state spending. -- (a) No appropriation, supplemental appropriation or budget act shall cause the aggregate state general revenue appropriations enacted for the 1992 fiscal year to exceed ninety-nine and one-half percent (99.5%), for the fiscal year 1993 to exceed ninety-nine percent (99%), for the fiscal year 1994 to exceed ninety-eight and one-half percent (98.5%) , and for the fiscal year 1995 and thereafter to exceed ninety-eight percent (98%) of the estimated state general revenues for such fiscal year from all sources, including estimated unencumbered general revenues not continued or reappropriated to the new fiscal year remaining at the end of the previous fiscal year. Estimated unencumbered general revenues are calculated by taking the estimated general revenue cash balance at the end of the fiscal year less estimated revenue anticipation bonds or notes, estimated general revenue encumbrances, estimated continuing general revenue appropriations and the amount of the budget reserve and cash stabilization account at the end of said fiscal year. The amount of the general revenue estimate and estimated unencumbered general revenues remaining shall be determined by the state controller and approved by the auditor general in conformance with accounting procedures currently in use. The excess of any unencumbered general revenue shall be determined by subtracting from the actual unencumbered general revenues at the end of any fiscal year an amount which together with the latest estimated general revenues is necessary to fund the ensuing fiscal year's general revenue budget including the required estimated general revenue supplemental and annual appropriations.

(b) The amount between the applicable percentage in (a) and one hundred percent (100%) of the estimated state general revenue for any fiscal year as estimated in accordance with subsection (a) of this section shall be appropriated in any given fiscal year into the budget reserve and cash stabilization account; provided, however, that no such payment will be made which would increase the total of the budget reserve and cash stabilization account to more than three percent (3%) of only the estimated state general revenues as set by subsection (a) of this section. In the event that the payment to be made into the budget reserve and cash stabilization account would increase the amount in said account to more than three percent (3%) of estimated state general revenues that said amount shall be transferred to the state bond capitol fund to be used solely for the purposes of reduction of state indebtedness, payment of debt service, and/or funding of capitol projects. {ADD However, there shall be no expenditures of money under this section without passage of a specific appropriation by the general assembly.ADD}

(c) Within forty-five (45) days after the close of any fiscal year, all unencumbered general revenue in the year end surplus account from the said fiscal year shall be transferred to the general fund.

SECTION 18. Chapter 16-70 of the General Laws entitled "The Rhode Island Children's Crusade for Higher Education" is hereby amended by adding thereto the following section:

{ADD 16-70-6. Audit requirements. -- ADD} {ADD The Rhode Island Children's Crusade for Higher Education is required to obtain the approval of Director of Administration and the Auditor General prior to the employment of private auditors. Audit work papers of the private auditors shall be made available upon request to the Auditor General and/or the Director of Administration for their review, at the completion of the audit. The audit report shall be furnished to the Auditor General and the Director of Administration.ADD}

SECTION 19. Section 16-59-5 of the General Laws in Chapter 16-59 entitled "Board of Governors for Higher Education" is hereby amended to read as follows:

16-59-5. Meetings of the board. -- The board shall hold regular meetings at least twice in each quarter of each calendar year. All meetings of the board of governors for higher education shall be open to the public, provided that executive sessions may be held as subordinate parts of public meetings only when matters relating to sensitive personnel or collective bargaining are to be heard. {DEL Every January at a time and place to be determined by the board, the board shall hold a meeting to which it shall invite the entire membership of the general assembly. At least thirty (30) days' written notice of the annual meeting shall be furnished to each invitee, which notice shall include an agenda of the meeting, which agenda shall include but not be limited to the budget submitted for the fiscal year beginning July 1 of the next fiscal period. DEL}

SECTION 20. Section 35-4-27 of the General Laws in chapter 35-4 entitled "State Funds" is hereby amended to read as follows:

35-4-27. Indirect cost recoveries on restricted receipt accounts. -- Indirect cost recoveries of seven percent (7%) of cash receipts shall be transferred from all restricted receipt accounts to be recorded as general revenues in the general fund; however, there shall be no such transfer from cash receipts with restrictions received exclusively from contributions from nonprofit charitable organizations. Such indirect cost recoveries shall be applied to all accounts, unless prohibited by federal law or regulation, court order or court settlement. The following restricted receipt accounts shall not be subject to the provisions of this section:

SECTION 21. Chapter 8-2 of the General Laws entitled "Supreme Court " is hereby amended by adding thereto the following section:

{ADD 8-2-39.1. Special Master. --ADD} {ADD There is hereby created within the Superior Court the position of Special Master, who shall be appointed by the Presiding Justice of the Superior Court, with the advice and consent of the senate, for a period of ten (10) years, and until a successor is appointed and qualified. Nothing contained herein shall be construed to prohibit the reappointment of a special master for one or more additional ten (10) year terms. The person appointed to serve as Special Master shall be a member of the Bar of the State of Rhode Island. The Special Master shall have the duties, responsibilities, powers and benefits as authorized in section 8-2-39. ADD}

SECTION 22. Judicial end of year balances -- Reappropriation. -- Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget", all unexpended, encumbered, and unencumbered balances of said revenue appropriations within the judicial budget, whether regular or special appropriations, at the end of fiscal year 1996-1997 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

SECTION 23. Chapter 35-3 entitled "State Budget" is hereby amended by adding thereto the following section:

{ADD 35-3-26. Technology Related Expenditures. --ADD} {ADD All expenditures for information resources and information technologies defined in section 29-8-2 of the Rhode Island General Laws, regardless of source of financing, shall be in conformance with a plan of expenditures approved by the legislature as part of its annual budget review process.ADD}

SECTION 24. This article shall take effect July 1, 1997. Section 22 of this Article shall take effect June 30, 1997. Section 20 shall take effect upon passage and shall be retroactive to July 1, 1996. Respectfully submitted,

SECTION 1. The amounts appropriated within section 1 of article 1 of this act include one million six hundred ninety-three thousand six hundred ten dollars ($1,693,610) allocable to the payment of debt service on bonds of the Rhode Island Refunding Bond Authority issued pursuant to chapter 35-8.1 of the general laws.

SECTION 2. The state applied certain bond proceeds of the Rhode Island Refunding Bond Authority to refund bonds issued pursuant to chapter 46-25 of the general laws for the Narragansett Bay Water Quality Management District Commission. To the extent that funds of said commission are not sufficient to pay debt service of twenty one thousand one hundred sixty-five dollars ($21,165) on the bonds of the Rhode Island Refunding Bond Authority coming due during the fiscal year ending June 30, 1998, and allocable to the said commission, there is hereby appropriated out of any money in the treasury not otherwise appropriated an amount sufficient for payment of said debt service.

SECTION 3. Chapter 37-14 of the General Laws entitled "Public Buildings Authority" is hereby repealed in its entirety.

{DEL 37-14-1. Members -- Compensation. -- DEL} {DEL (a) There is hereby created a body corporate and politic to be known as the "Rhode Island public buildings authority." The authority shall consist of nine (9) members. Nine (9) of the members shall be appointed by the Governor, one (1) of the members shall be appointed by the governor from a list of three (3) names submitted by the speaker and one (1) of the members shall be appointed by the governor from a list of three names submitted by the senate majority leader. If the governor fails to appoint within thirty (30) days of the submission of the list, then the speaker or the senate majority leader, as the case may be, shall make the appointment. One (1) of the members shall be an engineer registered in the State of Rhode Island to be appointed by the governor. One (1) of the members shall be an architect who holds a Rhode Island Certificate to be appointed by the governor.

(e) The members of the authority other than the chairman shall receive no compensation for their services but shall be reimbursed for their actual expenses necessarily incurred in the performance of their duties. DEL}

{DEL 37-14-2. Definitions. -- DEL} {DEL As used in this chapter, the following words and terms shall have the following meanings, unless the context shall indicate another or different meaning:

(m) The word "state" shall mean and include the state of Rhode Island and Providence Plantations, any office, department, board, commission, bureau, division, authority, public corporation, agency, or instrumentality thereof. DEL}

{DEL 37-14-3. Acquisition and construction of projects -- Lease or sale -- Conveyance to authority -- Request for project. -- DEL} {DEL (a) In order to benefit the people of the state and to provide for their general health and welfare and to maintain the high standards of public facilities and public equipment within the state the authority is hereby authorized and empowered to acquire and construct public facilities and to acquire public equipment; to maintain, repair and operate the same; and with the consent of both the governor and the general assembly to issue revenue bonds of the authority, payable solely from revenues derived from leasing of the projects, to finance the same. Development of the projects may be initiated by the authority only upon request of the proper agency of the federal government, or of the legislative body of the municipality seeking the project, or of both the general assembly and the governor in the case of the state, the director of administration with the approval of the governor being hereby authorized to enter into a contract of lease with the authority for the leasing of such projects upon such terms and conditions as shall be agreed to by the director of administration and the authority; and, in the case of public facilities (except those public facilities to be used in connection with projects to provide judicial complexes, administrative offices, educational facilities and warehouse facilities), shall require, prior to the issuance of the revenue bonds, approval by resolution of the legislative body of the municipality in which they are proposed to be located.

(f) Any request by the legislative body of a municipality seeking a project shall be in the form of a resolution adopted by a unanimous vote of the body, or, in the case of projects requested by the legislative bodies of two or more cities or towns comprising a joint or regional undertaking, by a unanimous vote of the legislative body of each city or town participating in such undertaking. DEL}

{DEL 37-14-4. Credit of state and political subdivisions not pledged. -- DEL} {DEL (a) Revenue bonds issued under the provisions of this chapter shall not be deemed to constitute a debt of the state or of any political subdivision thereof for a pledge of the faith and credit of the state or of any political subdivision, but shall be payable solely from the funds provided therefor from revenues. All revenue bonds shall contain on the face thereof a statement to the effect that neither the state nor the authority shall be obligated to pay the bonds or the interest thereon except from revenues of the project or projects on account of which the bonds shall be issued, and that neither the faith and credit nor the taxing power of the state or of any political subdivision thereof is pledged to the payment of the principal of or the interest on the bonds.

(b) All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds provided under the provisions of this chapter. DEL}

{DEL 37-14-5. Powers of authority. -- DEL} {DEL The authority is hereby authorized and empowered:

(q) To do all other acts and things necessary or convenient to carry out the powers expressly granted in this chapter. DEL}

{DEL 37-14-6. Eminent domain proceedings. -- DEL} {DEL The authority shall have the right to acquire any land, or any interest therein, by the exercise of the power of eminent domain, whenever it shall be determined by the authority that the acquisition of the land, or interest, is necessary for the construction or the operation of any project.

(2) If any of the land, or interest therein, is devoted to a public use, it may, nevertheless, be acquired, and the taking shall be effective provided that no land, or interest therein, belonging to a public utility corporation may be acquired without the approval of the public utilities administrator or other officer or tribunal having regulatory power over the corporation. Any land, or interest therein, already acquired by the authority may, nevertheless be included within the taking for the purpose of acquiring any outstanding interests in the land. DEL}

{DEL 37-14-6.1. Eminent domain -- Standards. -- DEL} {DEL In addition to all of the proceedings and requirements under section 37-14-6, the authority shall further be required to follow the same statutory proceedings for the taking of land as required of state agencies when the agencies take land under the authority granted by chapter 37-6. DEL}

{DEL 37-14-7. Revenue bonds. -- DEL} {DEL (a) With the consent of both the governor and the general assembly authority is hereby authorized to provide by resolution for the issuance, at one time or from time to time, of revenue bonds of the authority for the purpose of paying all or a part of the cost of any one or more projects, the construction or acquisition of which is authorized by this chapter. The principal of and the interest on the bonds shall be payable solely from the funds herein provided for the payment. The bonds of each issue shall be dated, shall bear interest at such rate or rates as the authority shall determine, payable semi-annually, shall mature at such time or times not exceeding forty (40) years from their date or dates, as may be determined by the authority, and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the state. The bonds shall be signed by the chairperson of the authority or shall bear his or her facsimile signature, and the official seal of the authority or a facsimile thereof shall be impressed or imprinted thereon and attested by the secretary of the authority, and any coupons attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case any officer whose signature or facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or the facsimile shall nevertheless be valid and, sufficient for all purposes, the same as if he or she had remained in office until the delivery. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest and for the interchange of registered and coupon bonds. The authority may sell such bonds in such manner, either at public or private sale, and for such price, as it may determine will best effect the purposes of this chapter.

(c) Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the state, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this chapter. DEL}

{DEL 37-14-8. Trust agreement. -- DEL} {DEL In the discretion of the authority, any bonds issued under the provisions of this chapter may be secured by a trust agreement by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. The trust agreement or the resolution providing for the issuance of the bonds may pledge or assign the revenues to be received and may convey or mortgage any project or any part thereof or any combination of projects or parts thereof. The trust agreement or resolution providing for the issuance of the bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders or noteholders as may be reasonable and proper and not in violation of the law, including covenants setting forth the duties of the authority in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation, and insurance of the project or projects in connection with which the bonds shall have been authorized, the custody, safeguarding, and application of all moneys, and conditions or limitations with respect to the issuance of additional bonds. It shall be lawful for any bank or trust company incorporated under the laws of the state which may act as depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. The trust agreement may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, the trust agreement or resolution may contain such other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of the trust agreement or resolution may be treated as a part of the authority's cost of operation and maintenance. DEL}

{DEL 37-14-9. Revenues. -- DEL} {DEL The authority is hereby authorized and empowered to fix, revise, and collect from time to time subject to the provisions of this chapter, fees, rentals, and other charges for the use of projects of, or the services rendered by, the authority to pay (a) the cost of maintaining, repairing, and operating the project or projects or portion or portions thereof and (b) the principal of, premium, if any, and interest on the bonds and notes as the bonds shall become due and payable, and to create reserves for such purposes. The fees, rentals, and other charges shall not be subject to supervision or regulation by any commission, board, bureau, or agency of the state or of any municipality or other political subdivision of the state. The revenues derived from the project or projects or portion or portions in connection with which the bonds or notes shall have been issued, may be pledged as provided in the resolution or the trust agreement. The pledge shall be valid and binding from the time when the pledge is made; the rentals, revenues, or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the authority. The use and disposition of revenues shall be subject to the provisions of the resolution authorizing the issuance of the bonds or the trust agreement. DEL}

{DEL 37-14-10. Trust funds. -- DEL} {DEL All moneys received pursuant to the provisions of this chapter, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied as may be provided in the resolution authorizing the issuance of the bonds or the trust agreement securing the bonds. The authority shall, in the resolution authorizing the bonds or in the trust agreement securing such bonds, provide for the payment of the proceeds of the sale of the bonds and the revenues to be received to a trustee, which shall be any trust company or bank having the powers of a trust company within or without the state, who shall act as trustee of the funds, and hold and apply the same to the purposes of this chapter, subject to the regulations as this chapter and such resolution or trust agreement may provide. DEL}

{DEL 37-14-11. Remedies. -- DEL} {DEL Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and the trustee under the trust agreement or the resolution, except to the extent the rights herein given may be restricted by the trust agreement or the resolution, may by civil action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder or under the trust agreement or the resolution authorizing the issuance of the bonds, and may enforce and compel the performance of all duties required by this chapter or by the trust agreement or resolution to be performed by the authority or by any officer thereof, including the fixing, charging, and collection of fees, rentals, and other charges. DEL}

{DEL 37-14-12. Exemptions from taxation. -- DEL} {DEL The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of the state of Rhode Island and for the facilitation of the conduct of their public business, and, as the acquisition, construction, operation, and maintenance by the authority of the projects herein defined will constitute the performance of essential governmental functions, the authority shall not be required to pay any taxes or assessments upon the projects or upon any property acquired or used by the authority under the provisions of this chapter or upon the income from the projects, and the bonds, issued under the provisions of this chapter, their transfer, and the income therefrom (including any profit made on the sale thereof) shall at all times be free from taxation by the state of Rhode Island, or any political subdivision or other instrumentality of the state, excepting inheritance, estate, and gift taxes. DEL}

{DEL 37-14-13. Bonds eligible for investment. -- DEL} {DEL Bonds issued by the authority under the provisions of this chapter are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, credit unions, building and loan associations, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. The bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations is now or may hereafter be authorized by law. DEL}

{DEL 37-14-14. Negotiable instruments. -- DEL} {DEL Notwithstanding any of the foregoing provisions of this chapter or any recitals in any bonds issued under the provisions of this chapter, all bonds shall be deemed to be negotiable instruments under the laws of this state. DEL}

{DEL 37-14-15. Refunding bonds. -- DEL} {DEL The authority is hereby authorized to provide for the issuance of refunding bonds of the authority for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon or any interest accrued or to accrue to the earliest or subsequent date of redemption purchase or maturity of the bonds. The proceeds of bonds or notes issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion of the authority, to the purchase, retirement at maturity, or redemption of the outstanding bonds or notes either on their earliest or a subsequent redemption date, and may, pending the application, be placed in escrow. Any escrowed proceeds may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit, time deposits, or repurchase agreements fully secured or guaranteed by the state or the United States, or an instrumentality of either, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds and notes to be so refunded. The interest, income and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the authority for use by it in furtherance of its purposes. The issuance of the bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect of the same shall be governed by the provisions of this chapter insofar as the same may be applicable. DEL}

{DEL 37-14-16. Use of projects. -- DEL} {DEL The use of the facilities of the authority and the operation of its business shall be subject to the rules and regulations from time to time adopted by the authority; provided, however, that the authority shall not be authorized to do anything which will impair the security of the holders of the obligations of the authority or violate any agreements with them or for their benefit. DEL}

{DEL 37-14-17. Limitation of powers. -- DEL} {DEL The state does hereby pledge to and agree with any person, firm, or corporation, or federal agency subscribing to or acquiring the bonds to be issued by the authority for the construction, extension, improvement, equipping, furnishing or enlargement of any project or part thereof, that the state will not limit or alter the rights hereby vested in the authority until all bonds at any time issued, together with the interest thereon, are fully met and discharged. The state does further pledge to and agree with the United States and any other federal agency that in the event that any federal agency shall construct or contribute any funds for the construction, extension, improvement, equipping, furnishing, or enlargement of any project, or any portion thereof, the state will not alter or limit the rights and powers of the authority in any manner which would be inconsistent with the due performance of any agreements between the authority and the federal agency; and the authority shall continue to have and may exercise all powers herein granted, so long as the same shall be necessary or desirable for the carrying out of the purposes of this chapter. DEL}

{DEL 37-14-18. Actions authorized by resolution. -- DEL} {DEL Any action taken by the authority under the provisions of this chapter may be authorized by resolution at any regular or special meeting, and each resolution shall take effect immediately and need not be published or posted. DEL}

{DEL 37-14-19. Annual report and audit. -- DEL} {DEL In the month of January the authority shall make an annual report to the governor and to the general assembly of its activities for the preceding fiscal year. Each report shall set forth a complete operating and financial statement covering its operations during the year. The state director of administration shall cause an annual audit of the books, records, and accounts of the authority to be made and the costs thereof shall be treated as a part of the cost of operation. DEL}

{DEL 37-14-20. Transfer to governmental body. -- DEL} {DEL When all bonds issued under the provisions of the chapter for each specific project and the interest thereon shall have been paid or a sufficient amount for the payment of all the bonds and the interest thereon to the maturity thereof shall have been set aside in trust for the benefit of the bondholders, that specific project financed under the provisions of this chapter may be transferred to the governmental body leasing the project on such terms and conditions and for such consideration as the authority shall determine. If the authority shall be dissolved all funds of the authority not required for the payment of bonds shall be paid to the general treasurer for the use of the state and all property belonging to the authority shall be vested in the state and delivered to it. DEL}

{DEL 37-14-21. Inconsistent provisions. -- DEL} {DEL Insofar as the provisions of this chapter are inconsistent with the provisions of any other law or ordinance, general, special or local, or of any rule or regulation of the state or any municipality, the provisions of this chapter shall be controlling. DEL}

{DEL 37-14-22. Applicability of other laws. -- DEL} {DEL This chapter shall be construed to provide a complete additional and alternative method for doing the things authorized hereby and shall be regarded as supplemental and in addition to the powers conferred by other laws. The issuance of all bonds, notes and other obligations of the authority under the provisions of this chapter need not comply with the requirements of any other statute applicable to the issuance of same and contracts for the construction and acquisition of any project undertaken pursuant to this chapter shall comply with any provision of any other state law or ordinance applicable to such contracts, including, but not limited, to section 37-16-2 et seq. (public works arbitration); section 37-13-1 et seq. (prevailing wages); and section 37-12-1 et seq. (contract bonds) for the construction and acquisition of state or municipal owned property. No proceedings or notice of approval shall be required for the issuance of any bonds or any instrument of security therefor except as herein provided. DEL}

{DEL 37-14-23. Liberal construction. -- DEL} {DEL This chapter being necessary for the welfare of the state and its inhabitants shall be liberally construed so as to effectuate its purposes. DEL}

{DEL 37-14-24. Severability. -- DEL} {DEL The provisions of this chapter are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of the court shall not affect or impair any of the remaining provisions. DEL}

{DEL 37-14-25. Medical care available to employees. -- DEL} {DEL (a) All full-time employees of the authority shall be entitled to purchase the benefits set forth in section 36-12-2 at the same rate as the group rate paid by the state for the benefits.

(b) Payments for these benefits shall be made by such employees desiring the benefits directly to the general treasurer at the rate as stated above. DEL}

SECTION 4. Sections 35-8.1-2, 35-8.1-3, 35-8.1-8, 35-8.1-12 and 35-8.1-13 of the General Laws in Chapter 35-8.1 entitled "Rhode Island Refunding Bond Authority" are hereby amended to read as follows:

35-8.1-2. Legislative findings. -- The general assembly hereby finds, declares, and observes that:

(a) The state issued its general obligation bonds dated May 1, 1984, in the aggregate principal amount of thirty million dollars ($30,000,000.) pursuant to statutory authorities approved by the electorate of the state, and the state issued its general obligation bonds dated June 28, 1985, in the aggregate principal amount of ninety million dollars ($90,000,000) pursuant to statutory authorities approved by the electorate of the state;

(b) The 1984 and 1985 bonds bear interest at a rate in excess of current interest rates and the general assembly has determined that it would be in the best interests of the people of the state to obtain funds to pay, redeem, or retire the 1984 and 1985 bonds with bonds bearing a lower rate of interest;

(c) The statutory authorities previously approved do not provide authorization for the issuance of general obligation refunding bonds of the state;

(d) The general assembly desires to create an authority with the power to issue bonds to provide funds to loan to the state so that the state can pay, redeem, or retire the 1984 and 1985 bonds; and

(e) The general assembly desires further to grant the refunding bond authority the power during the fiscal year ending June 30, 1995 to issue bonds to provide funds to lend to the state so the state may pay, redeem, or retire a portion of the unfunded liabilities of the state retirement system not to exceed three hundred million dollars ($300,000,000).

{ADD (f) Furthermore, the general assembly desires to consolidate debt issuing authorities and create administrative savings as a result of such consolidations. To accomplish this desire, on July 1, 1997, the public building authority shall be eliminated as an entity and its functions, powers, rights, duties and liabilities shall be transferred to the authority pursuant to the provisions of this chapter. ADD}

35-8.1-3. Definitions. -- Unless otherwise indicated by the context, the following definitions shall apply for purposes of this chapter:

(a) "Authority" shall mean this refunding bond authority created by section 35-8.1-4;

(b) "Board" means the board of directors of the authority as constituted by section 35-8.1-5;

(c) "Bond" or "bonds" shall include any bond or note and other instrument or form of indebtedness, whether or not certificated, that may lawfully be issued by the authority;

(d) "Revenues" shall include all loan payments, charges, fees, moneys, profits, gifts, grants, contributions, appropriations, and all other income derived or to be derived by the authority under this chapter;

(e) "State" shall mean the state of Rhode Island and Providence Plantations; and

(f) "1984 bonds" shall mean the state's thirty million dollar ($30,000,000) general obligation bonds dated May 1, 1984.

(g) "1985 bonds" shall mean the state's ninety million dollar ($90,000,000) general obligation bonds dated June 28, 1985.

{ADD (h) The word "project" shall mean any public facility or public equipment which the authority is authorized to construct, improve, equip, furnish, maintain, acquire, install, or operate under the provisions of this chapter, to provide for the conduct of the executive, legislative, and judicial functions of government, and its various branches, departments, and agencies, at all levels including federal, state and municipal. The projects may include but need not be limited to judicial, administrative, educational, residential, rehabilitative, medical, correctional, recreational, transportation, public water supply system, and such other projects as the authority shall be requested to initiate to provide effective governmental, health, safety, and welfare services in the state, or by the federal government, or by any municipality or joint or regional agencies of the state or any combination thereof.

(r) The word "state" shall mean and include the state of Rhode Island and Providence Plantations, any office, department, board, commission, bureau, division, authority, public corporation, agency, or instrumentality thereof. ADD}

35-8.1-8. General powers. -- To carry out the purposes of this chapter, the authority has the power to:

(a) Sue and be sued;

(b) Adopt and have an official seal and alter the same at its pleasure;

(c) Make and alter bylaws, rules, and regulations for the conduct of its affairs and business;

(d) Maintain an office at such place or places within the state as it may determine;

(e) Acquire, hold, use, and dispose of its revenue income, funds, and moneys;

(f) {DEL Acquire, own, hold, improve, rent, lease, use, and otherwise deal in and with personal property, or any interest therein; DEL}

{ADD Acquire, purchase, hold, and use any property, real, personal or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of the authority, and to mortgage, lease, or sell any of the property; and (without limitation of the foregoing) to lease as lessee, any property, real, personal, or mixed, or any interest therein to lease as lessor to the federal government, the state, and any municipality any project of the authority, and to sell, transfer, and convey to any lessee or to any other person upon such terms and conditions and for such considerations as the authority shall determine. ADD}

(g) Borrow money, issue its bonds, provide for and secure the payment thereof, and provide for the rights of the holders thereof, and to purchase, hold, and dispose of any of its bonds;

(h) Lend money for its purposes, invest and reinvest its funds, and, at its option, take and hold such property, real or personal, as security for the payment of funds so loaned and invested, except that at no time will the authority take and hold property of the state as security for the payment of funds so loaned;

(i) Accept, in furtherance of its purposes, appropriations, gifts, or grants of property, funds, money, materials, labor, supplies, or services from the United State{ADD s ADD} of America or the state or any other state or agencies or departments thereof, or from any governmental unit or any person, firm, or corporation, and carry out the terms or provisions or make agreements with respect to those appropriations, gifts, or grants, and do any and all things necessary, useful, desirable, or convenient in connection with the procurement, acceptance, or disposition of those appropriations, gifts, or grants;

(j) Do and perform any acts and things authorized by this chapter under, through, or by means of its officers or consultants or by contracts with any person, firm, or corporation;

(k) Make, enter into, and enforce all contracts or agreements necessary, convenient, or desirable for the purposes of the authority or pertaining to any loan to the state or to the performance of its duties and execution or carrying out of any of its powers under this chapter;

(l) Purchase any bond or interest rate insurance and to establish such credit or liquidity enhancement arrangements with financial institutions as the authority shall deem advisable;

(m) Invest any funds or moneys of the authority in the same manner as permitted for investment of funds belonging to the state or held in the state treasury; and

(n) Do all acts and things necessary, convenient, or desirable to carry out the powers expressly granted or necessarily implied in this chapter {DEL . DEL} {ADD ; ADD}

{ADD (o) Acquire by purchase, lease, or otherwise, and to construct, improve, equip, furnish, maintain, repair, and operate projects, and to establish rules and regulations for the use of any project;

(v) Acquire in the name of the authority by purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, or by the exercise of the rights of condemnation in the manner hereinafter provided, such public or private lands, including public parks, playgrounds, or reservations, or parts thereof or rights therein, rights of way, property, rights, easements, and interests as it may deem necessary for carrying out the provisions of this chapter; provided, however, that all public property damaged in carrying out the powers granted by this chapter shall be restored or repaired and placed in its original condition as nearly as practicable. ADD}

35-8.1-12. Receipt, investment, and application by state of loan. -- (a) Other than as provided in (b) below, the proceeds of the loan to the state shall, upon their receipt, be paid by the general treasurer immediately to such paying agent or other suitable trustee for the 1984 and 1985 bonds and the paying agent or trustee shall hold the proceeds in trust until they are applied to pay the 1984 and 1985 bonds. Neither the governor nor the general treasurer or any other official of the state or trustee for the 1984 and 1985 bonds shall make or permit to be made any expenditures for new capital improvements from the proceeds of the loan. While the proceeds are held in trust, they may be invested in obligations of the United States of America or the state or any other state.

(b) The proceeds generated for refinancing the pension obligation shall be paid to the general treasurer on behalf of the state who shall then immediately remit the proceeds to the state retirement system. Neither the governor nor the general treasurer or any other official of the state shall make any expenditures for new capital improvements from the proceeds. While the proceeds are held by the state retirement system they shall be invested pursuant to the investment statutes and policies of the State Investment Commission.

(c) The board with the approval of the governor shall have the authority to appoint a paying agent or other suitable trustee for the 1984-1985 bonds and the governor is hereby authorized to execute any documents or agreements on behalf of the state necessary to carry out the purpose of this section.

{ADD (d) Any proceeds issued pursuant to section 35-8.1-13(d), can be used in accordance within the terms of any trust or agreement entered into by the authority in connection with such bonds. ADD}

35-8.1-13. Bonds of the authority -- Issuance -- Purposes. -- (a) The authority shall have the power and is authorized to provide by resolution for the issuance of bonds upon the request of the governor and a finding of a financial benefit to the state in such principal amounts as it shall deem necessary to provide funds for the purposes of:

(1) Loaning money to the state to provide funds to pay, redeem or retire

(a) all or a part of the 1984 or 1985 bonds; or

(b) a portion of the unfunded liability of the state retirement system not to exceed three hundred million dollars ($300,000,000); provided, however, that the authority conferred hereby, as it relates to the refunded liability of the state retirement system, shall expire on June 30, 1995;

(2) Funding or refunding the principal of, or interest or redemption premium on, any bonds issued by it, whether the bonds or interest to be paid, funded, or refunded have or have not become due or are subject to redemption prior to maturity in accordance with their terms;

(3) Establishing or increasing reserves to secure or to pay such bonds or interest thereon as are reasonably required and permitted by law; and

(4) Paying all other costs or expenses of the authority incident to and necessary or convenient to carry out its purposes and powers.

(b) In the event that the authority issues refunding bonds pursuant to subsection (a)(2), the proceeds of the refunding bonds may be applied, in the discretion of the authority, to the purchase, retirement at maturity, or redemption of the outstanding bonds either at their earliest or a subsequent redemption date, and may, pending that application, be placed in escrow with a suitable trustee. While the proceeds are held in trust, they may be invested in obligations of the United States of America or the state or any other state.

(c) If the authority shall deposit the proceeds of refunding bonds with a suitable trustee in such an amount that, when invested in and combined with income expected to be derived from obligations of the United States of America or the state or any other state, are sufficient to pay all principal, interest, and premium, if any, on any of its outstanding bonds, then, until the outstanding bonds are called for prepayment or otherwise paid, the outstanding bonds shall not be considered debts of the authority, for any purpose, from the date of deposit of the moneys with the trustee.

{ADD (d) Notwithstanding the provisions of subsections (a)-(c) above, (1) With the consent of both the governor and the general assembly the authority is hereby authorized to provide by resolution for the issuance, at one time or from time to time, of revenue bonds of the authority for the purpose of paying all or a part of the cost of any one or more projects, the construction or acquisition of which is authorized by this chapter. The principal of and the interest on the bonds shall be payable solely from the funds herein provided for the payment. The bonds of each issue pursuant to this subsection shall be dated, shall bear interest at such rate or rates as the authority shall determine, payable semi-annually, shall mature at such time or times not exceeding forty (40) years from their date or dates, as may be determined by the authority, and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the state. The bonds shall be signed by the chairperson of the authority or shall bear his or her facsimile signature, and the official seal of the authority or a facsimile thereof shall be impressed or imprinted thereon and attested by the secretary of the authority, and any coupons attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case any officer whose signature or facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or the facsimile shall nevertheless be valid and, sufficient for all purposes, the same as if he or she had remained in office until the delivery. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest and for the interchange of registered and coupon bonds. The authority may sell such bonds in such manner, either at public or private sale, and for such price, as it may determine will best effect the purposes of this chapter.

(5) The authority is hereby authorized to provide for the issuance of refunding bonds of the authority for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this subsection, including the payment of any redemption premium thereon or any interest accrued or to accrue to the earliest or subsequent date of redemption purchase or maturity of the bonds. The proceeds of bonds or notes issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion of the authority, to the purchase, retirement at maturity, or redemption of the outstanding bonds or notes either on their earliest or a subsequent redemption date, and may, pending the application, be placed in escrow. Any escrowed proceeds may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit, time deposits, or repurchase agreements fully secured or guaranteed by the state or the United States, or an instrumentality of either, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds and notes to be so refunded. The interest, income and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the authority for use by it in furtherance of its purposes. The issuance of the bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect of the same shall be governed by the provisions of this chapter insofar as the same may be applicable. ADD}

SECTION 5. Chapter 35-8.1 of the General Laws entitled "Rhode Island Refunding Bond Authority" is hereby amended by adding thereto the following sections:

{ADD 35-8.1-8.1. Transfer of functions, powers, rights, duties, and liabilities of the Public Building Authority. -- ADD} {ADD Upon the passage of this article there are hereby transferred to the authority all the functions, powers, rights, duties, liabilities, property and resources of the Public Buildings Authority. ADD}

{ADD 35-8.1-8.2. Acquisition and construction of projects -- Lease or sale -- Conveyance to authority -- Request for project. -- ADD} {ADD (a) In order to benefit the people of the state and to provide for their general health and welfare and to maintain the high standards of public facilities and public equipment within the state the authority is hereby authorized and empowered to acquire and construct public facilities and to acquire public equipment; to maintain, repair and operate the same; and with the consent of both the governor and the general assembly to issue revenue bonds of the authority, payable solely from revenues derived from leasing of the projects, to finance the same. Development of the projects may be initiated by the authority only upon request of the proper agency of the federal government, or of the legislative body of the municipality seeking the project, or of both the general assembly and the governor in the case of the state, the director of administration with the approval of the governor being hereby authorized to enter into a contract of lease with the authority for the leasing of such projects upon such terms and conditions as shall be agreed to by the director of administration and the authority; and, in the case of public facilities (except those public facilities to be used in connection with projects to provide judicial complexes, administrative offices, educational facilities and warehouse facilities), shall require, prior to the issuance of such revenue bonds, approval by resolution of the legislative body of the municipality in which they are proposed to be located.

(f) Any request by the legislative body of a municipality seeking a project shall be in the form of a resolution adopted by a unanimous vote of such body, or, in the case of projects requested by the legislative bodies of two or more cities or towns comprising a joint or regional undertaking, by a unanimous vote of the legislative body of each such city or town participating in such undertaking. ADD}

{ADD 35-8.1-8.3. Eminent domain proceedings. -- ADD} {ADD The authority shall have the right to acquire any land, or any interest therein, by the exercise of the power of eminent domain, whenever it shall be determined by the authority that the acquisition of the land, or interest, is necessary for the construction or the operation of any project.

(2) If any of the land, or interest therein, is devoted to a public use, it may, nevertheless, be acquired, and the taking shall be effective provided that no land, or interest therein, belonging to a public utility corporation may be acquired without the approval of the public utilities administrator or other officer or tribunal having regulatory power over the corporation. Any land, or interest therein, already acquired by the authority may, nevertheless be included within the taking for the purpose of acquiring any outstanding interests in the land. ADD}

{ADD 35-8.1-8.4. Eminent domain -- Standards. -- ADD} {ADD In addition to all of the proceedings and requirements under section 35-8.1-8.3, the authority shall further be required to follow the same statutory proceedings for the taking of land as required of state agencies when the agencies take land under the authority granted by chapter 6 of title 37. ADD}

{ADD 35-8.1-8.5. Use of projects. -- ADD} {ADD The use of the facilities of the authority and the operation of its business shall be subject to the rules and regulations from time to time adopted by the authority; provided, however, that the authority shall not be authorized to do anything which will impair the security of the holders of the obligations of the authority or violate any agreements with them or for their benefit. ADD}

{ADD 35-8.1-8.6. Transfer to governmental body. -- ADD} {ADD When all bonds issued under the provisions of the chapter for each specific project and the interest thereon shall have been paid or a sufficient amount for the payment of all the bonds and the interest thereon to the maturity thereof shall have been set aside in trust for the benefit of the bondholders, that specific project financed under the provisions of this chapter may be transferred to the governmental body leasing the project on such terms and conditions and for such consideration as the authority shall determine. If the authority shall be dissolved all funds of the authority not required for the payment of bonds shall be paid to the general treasurer for the use of the state and all property belonging to the authority shall be vested in the state and delivered to it. ADD}

SECTION 6. {ADD Preservation of rights and remedies. -- ADD} The abolition of the public buildings authority or the transfer of any function as provided in this article shall not impair the obligation of any contract or agreement nor abate any suit, action or other proceeding lawfully commenced or against it but the court may on motion filed within twelve (12) months after this article takes effect allow such a suit, action or proceeding to be maintained by or against the Rhode Island Refunding Bond Authority.

SECTION 7. {ADD Law revision by joint committee on legislative affairs. -- ADD} All general and public laws affected by this article shall be revised, amended, consolidated and conformed by the joint committee on legislative affairs. Wherever in such general and public laws reference is made to the public buildings authority which are transferred to the Rhode Island Refunding Bond Authority pursuant to this article, the joint committee on legislative affairs shall revise, amend, consolidate and conform such reference to effectuate the purpose and intent of this article. Such general and public laws, when so revised, amended, consolidated and conformed, shall be published in the general and public laws.

SECTION 8. This article shall take effect July 1, 1997.

SECTION 1. Section 44-19-40 of the General Laws in Chapter 44-19 entitled "Sales and Use Taxes -- Enforcement and Collection" is hereby amended to read as follows:

44-19-40. Disposition of revenue. -- (a) Notwithstanding any other provisions of law to the contrary, all monies received by the tax administrator under the provisions of chapters 18 and 19 of this title shall be paid over to the general treasurer; provided, however, that for the fiscal year commencing July 1, {DEL 1996 DEL} {ADD 1997 ADD} , six-tenths of one percent (0.6%) within the existing sales and use tax rates established in sections 44-18-18 and 44-18-20 exclusive of any receipts resulting from any expansion of the coverage of the sales and use taxes through legislation enacted subsequent to February 1, 1993 is hereby appropriated to the Rhode Island depositors economic protection corporation special revenue fund within the Rhode Island depositors economic protection corporation established pursuant to section 42-116-31 for the purposes specified in chapter 116 of title 42. In clarification of the intent of the legislature, six-tenths of one percent (0.6%) within the existing sales and use tax rates established in chapter 18 of this title exclusive of any receipts resulting from any expansion of the coverage of the sales and use taxes through legislation enacted subsequent to February 1, 1993 will be dedicated to the special revenue fund created by section 42-116-31 subject to the making of an annual appropriation by the general assembly of such sales and use tax receipts. Provided further, that the net taxes received and/or refunded through and including July 31, {DEL 1996 DEL} {ADD 1997 ADD} shall be deemed to be for the periods ending prior to July 1, {DEL 1996 DEL} {ADD 1997 ADD} and net taxes received and/or refunded on or after August 1, {DEL 1996 DEL} {ADD 1997 ADD} shall be deemed to be for periods ending on July 1, {DEL 1996 DEL} {ADD 1997 ADD} and thereafter. The state controller shall establish an escrow account within the general fund to be known as the "depositor's protection account."

(b) The state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the transfer of such sum or such portion thereof from the depositor's protection account to the special revenue fund. Those transfers shall be made at the end of each calendar month.

SECTION 2. To the extent that {DEL moneys DEL} {ADD monies ADD} appropriated by section 44-19-40 of the general laws are not sufficient to pay the principal and interest becoming due on any special obligation bonds secured by the special revenue fund established pursuant to section 42-116-31 during the fiscal year commencing July 1, {DEL 1996 DEL} {ADD 1997 ADD} or the amount required to be deposited into any debt service fund for such purposes, there is hereby appropriated to the special revenue fund an amount sufficient for the payment of principal and interest becoming due on any special obligation bonds secured by the special revenue fund in the fiscal year commencing July 1, {DEL 1996 DEL} {ADD 1997 ADD} or the amount required to be deposited into any debt service fund for such purposes.

SECTION 3. Section 3 of Chapter 16 of the Public Laws of 1997 entitled "Revised Appropriations" is hereby repealed in its entirety.

SECTION 4. Section 42-116-31 of the General Laws in Chapter 42-116 entitled "Rhode Island Depositors Protection Corporation" is hereby amended to read as follows:

42-116-31. Special revenue fund. -- (a) There is hereby created a special revenue fund. Commencing July 1, 1991, one-half of one percent (0.5%), and an additional one-tenth of one percent (0.1%) as of February 1, 1992, for a total of six-tenths (0.6%) of one percent as of February 1, 1992 which is hereby appropriated for the fiscal year ending June 30, 1992, within the existing sales and use tax rate established in sections 44-18-18 and 44-18-20 will be dedicated to the special revenue fund; provided, the six tenths of one percent (0.6%) dedicated to the special revenue fund shall not apply to any receipts resulting from any expansion of the coverage of the sales and use taxes through legislation enacted subsequent to February 1, 1992.

(b) For purposes of this section, the revenue estimating conference, in consultation with the tax administrator, shall determine conclusively and annually no later than June 1 of each year for the succeeding fiscal year the amount of receipts to result from the expansion of the coverage of the sales and use taxes. The proceeds for the fund shall be utilized to pay the debt service of the corporation and otherwise effectuate the purposes of the corporation, including, without limitation, the payment of operating expenses. The portion of the fund not required in the fiscal year, commencing on July 1, 1995, (but not to exceed $14,500,000) in the fiscal year commencing on July 1, 1996 (but not to exceed $15,800,000) {ADD in the fiscal year commencing on July 1, 1997 (but not to exceed fifteen million dollars ($15,000,000)), ADD} to effectuate the purposes of the corporation, to pay principal and interest becoming due on any special obligation bonds secured by the special revenue fund or to be deposited into any debt service fund or other fund established in connection with the issuance of any special obligation bonds for such purposes shall be returned to the state. Any such funds returned to the state shall be recorded on an accrual basis. {ADD The portion of the fund not required in any fiscal year commencing on or after July 1, 1997, to effectuate the purposes of the corporation, to pay principal and interest becoming due on any special obligation bonds secured by the special revenue fund or to be deposited into any debt service fund or other fund established in connection with the issuance of any special obligation bonds for such purposes shall be used to pay the loan obligations or bond indebtedness of the corporation. ADD} It is the intent of the general assembly to appropriate, from time to time, amounts to the special revenue fund not less in any fiscal year than the amount of the principal and interest becoming due on any special obligation bonds secured by the special revenue fund in such fiscal year or the amount required to be deposited into any debt service fund or other fund established in connection with the issuance of any special obligation bonds for such purposes.

SECTION 5. This section and sections 1, 2 and 4 of this Article shall take effect July 1, 1997. Section 3 shall take effect on June 30, 1997.

SECTION 1. Sections 1 and 2 of Chapter 96-037 of the Public Laws of 1996 are hereby amended to read as follows:

Section 1. The state of Rhode Island is hereby authorized to borrow during its fiscal year ending June 30, 1998, in anticipation of receipts from taxes such sum or sums, at such time or times and upon such terms and conditions not inconsistent with the provisions and limitations of section 17 of article VI of the constitution of Rhode Island, as the general treasurer, with the advice of the governor, shall deem for the best interests of the state, provided that the amounts so borrowed shall not exceed one hundred fifty million dollars ($150,000,000) any time outstanding. The state is hereby further authorized to give its promissory note or notes signed by the general treasurer and counter-signed by the secretary of state for the payment of any sum so borrowed. Any such proceeds shall be invested by the general treasurer until such time as they are needed. The interest income earned from such investments shall be used to pay the interest on the promissory note or notes, and any expense of issuing the promissory note or notes, with the balance remaining at the end of said fiscal year, if any, shall be used toward the payment of long term debt service of the state, unless prohibited by federal law or regulation.

SECTION 2. Notwithstanding any other authority to the contrary, duly authorized bonds or notes of the state issued during the fiscal year ending June 30, 1998 may be issued in the form of commercial paper, so-called. In connection therewith, the state, acting through the general treasurer, may enter into agreements with banks, trust companies or other financial institutions within or outside the state, whether in the form of letters or lines of credit, liquidity facilities, insurance or other support arrangements. Any notes issued as commercial paper shall be in such amount and bear such terms as the general treasurer, with the advice of the governor, shall determine, which may include provisions for prepayment at any time with or without premium at the option of the state. Such notes may be sold at a premium or discount, and may bear interest or not and, if interest bearing, may bear interest at such rate or rates variable from time to time as determined by the Federal Reserve Bank Composite Index of Commercial Paper, or the Municipal Market Data General Market Index, or other similar commercial paper offerings, or other method specified in any agreement with brokers for the placement or marketing of any such notes issued as commercial paper, or other like agreements. Any such agreement may also include such other covenants and provisions for protecting the rights, security and remedies of the lenders as may, in the discretion of the general treasurer, be reasonable and proper and be reasonable, legal and proper. The general treasurer may also enter into agreements with brokers for the placement or marketing of any such notes of the state issued as commercial paper. Any notes of the state issued as commercial paper in anticipation of receipts from taxes in any fiscal year must also be issued in accordance with the provisions of section 17 of article VI of the constitution of Rhode Island and within the limitations set forth in section 1 of this act.

SECTION 3. This article shall take effect July 1, 1997.

SECTION 1. Extension of previous authorizations. -- The general assembly hereby extends the authority to issue the following general obligation bond authorizations in the amounts stated to the termination dates contained herein, pursuant to the provisions of section 35-8-25 of the general laws. Such original authorizations enacted by Public Law and approved by the people, remain unissued as of February 1, 1997 as follows:

SECTION 2. Extinguishment of previous authorizations. -- The general assembly hereby extinguishes as of June 30, 1997 the authority to issue the following general obligation authorizations pursuant to the provisions of section 35-8-25 of the general laws. Such original authorizations, enacted by public law and approved by the people remain unissued as of February 1, 1997:

SECTION 3. Notwithstanding section 23-19-11 of the General Laws, the Rhode Island Resource Recovery Corporation shall submit its capital plan on or before September 1, 1997, and on or before September 1 of each year thereafter to the state budget office for review.

SECTION 4. Delaware Fund Appropriations. The following amounts are hereby appropriated out of any money in the state's Delaware Fund Capital Account not otherwise appropriated to be expended during the fiscal years ending June 30, 1998, June 30, 1999, and June 30, 2000. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw his orders upon the general treasurer for the payment of such sums and such portions thereof as may be required by her of properly authenticated vouchers.

PROJECT	FISCAL YEAR	FISCAL YEAR	FISCAL YEAR
	ENDING	ENDING	ENDING
	JUNE 30, 1998	JUNE 30, 1999	JUNE 30, 2000
DEM Misquamicut Beach A & E Services and Construction	$1,000,000	$	$
Remaining Construction and Demolition		500,000
Parking Lot			1,000,000
DEM State Pier Upgrades and Replacements	1,000,000
DOA Cranston Street Armory	377,000
DOA Chapin Health Lab	900,000	1,411,000
DOA Powers Bldg. Garage Sealing	368,000
DOA Statehouse Renovation Repair of Terrace Walls and South Stairs	600,000	1,700,000
Roof and Skylight Repairs	150,000	300,000
DOA Underground Storage Tank Remediation	500,000	500,000
DOC Maximum Security Improvements	294,000
DOC Women's Unit Improvements	397,000
DOC Projects	1,000,000
El/Sec Ed Woonsocket Vocational HVAC	200,000	130,000
High Ed Roofs	500,000
Judicial Garrahy Complex Interior	700,000	900,000	830,000
Judicial Kent County Courthouse Planning Funds	100,000	400,000
MHRH Asbestos	400,000
Military Staff Armory of Mounted Commands
Roof Replacement and Masonry Repairs	200,000
Windows and Heating/Ventilation/ Air Conditioning System		295,000
State Police Barracks & Training Academy Repairs	274,000
TOTAL:	8,960,000	6,136,000	1,830,000

SECTION 5. Any unexpended, encumbered and unencumbered funds from the fiscal year 1997 projects listed below shall be reappropriated in the ensuing fiscal year and made available for the same purposes.

SECTION 6. Sections 1, 2, 3 and 4 shall take effect July 1, 1997. Section 5 shall take effect June 30, 1997.

Section 1. For the fiscal year ending June 30, 1998, the compensation paid to commissioners and board members for attendance at board meetings of the following state agencies and autonomous and semi-autonomous boards and commissions authorized under the General Laws of this state is suspended. Reimbursement for travel costs to said meetings will continue to be allowable in accordance with existing state travel regulations.

Section 2. Notwithstanding the boards and commissions identified in Section 1 it is the intent of this article to suspend the compensation paid to members of all state agencies and autonomous and semi-autonomous boards and commissions authorized compensation under the General Laws of Rhode Island{ADD, except for the Medical Advisory Board of the Workers' Compensation Court pursuant to Chapter 28-30-22 of the general lawsADD}.

Section 3. This article shall take effect July 1, 1997.

SECTION 1. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Gasoline Tax" is hereby amended to read as follows:

31-36-20. Disposition of proceeds. -- (a) Notwithstanding any other provision of law to the contrary, all moneys paid into the general treasury under the provisions of this chapter or chapter 37 of this title shall be applied to and held in a separate fund and be deposited in such depositories as may be selected by the general treasurer to the credit of the fund, which fund shall be known as the Intermodal Surface Transportation Fund; provided, however, that three cents ($.03) per gallon of the tax imposed and accruing for the liability under the provisions of section 31-36-7, less refunds and credits, shall be transferred to the Rhode Island public transit authority as provided under section 39-18-21, and one cent ($.01) per gallon shall be transferred to the Elderly/Disabled Transportation Program of the department of elderly affairs, and nine cents

(8) For the fiscal year 2005, no funding shall be available for general revenue. ADD}

All deposits and transfers of funds made by the tax administrator under this section including those to the Rhode Island public transit authority, the department of elderly affairs and the general fund, shall be made within twenty-four (24) hours of receipt or previous deposit of the funds in question.

(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund shall be dedicated to the Rhode Island department of transportation, subject to annual appropriation by the general assembly. The director of the department of transportation shall submit to the general assembly, budget office and office of the governor annually an accounting of all amounts deposited in and credited to such fund together with a planned budget for proposed expenditures for the succeeding fiscal year in compliance with section 35-3-1 and section 35-3-4. On order of the director of transportation, the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sum of such portion thereof as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

(c) At any time the amount of the fund is insufficient to fund the expenditures of the department of transportation, not to exceed the amount authorized by the general assembly, the general treasurer is authorized from time to time, with the approval of the governor and the director of administration, in anticipation of the receipts of monies enumerated in section 31-36-20 to advance sums to the fund, for the purposes specified in section 31-36-20, any funds of the state not specifically held for any particular purpose, provided, however, that all such advances made to the fund shall be returned to the general fund forthwith upon the receipt by such fund of proceeds resulting from the receipt of monies to the extent of such advances.

SECTION 2. Section 31-36-7 of the General Laws in Chapter 31-36 entitled "Gasoline Tax" is hereby amended to read as follows:

31-36-7. Monthly report of distributors -- Payment of tax. -- (a) Every distributor shall, on or before the twenty-fifth day of each month, render a report to the tax administrator, upon forms to be obtained from the tax administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor without this state and the wholesale selling price thereof, and the amount of fuels sold by the distributor without this state from fuels within this state during the preceding calendar month, and, if required by the tax administrator as to purchases, the name or names of the person or persons from whom purchased and the date and amount of each purchase, and as to sales, the name or names of the person or persons to whom sold and the amount of each sale, and shall pay at the same time to the administrator the balance of a tax, if any, on all fuels sold or used by the distributor within this state, and the tax to be at the rate set forth in subsection (b) below.

(b)(1) For the period June 1, 1981 through March 31, 1983 every distributor shall pay to the tax administrator a tax at the rate of ten percent (10%) of the average wholesale selling price excluding federal and state excise taxes, of all taxable gallons of fuel sold or used by it within this state. The tax rate of ten percent (10%) of the average wholesale selling price shall be converted to cents per gallon rounded up to the nearest whole cent. In no event shall the tax imposed be less than ten cents (10 cents) per gallon.

(2) For the period April 1, 1983 and thereafter, every distributor shall pay to the tax administrator a tax at the rate of eleven percent (11%) of the average wholesale selling price excluding federal and state excise taxes of, all taxable gallons of fuel sold or used by it within this state. The tax rate of eleven percent (11%) of the average wholesale selling price shall be converted to cents per gallon rounded up to the nearest whole cent. In no event shall the tax imposed be less than twenty-five cents ($.25) per gallon , twenty-four cents ($.24) of which shall be disbursed and distributed pursuant to the provisions of section 31-36-20, and one-cent ($.01) of which shall be paid into the general revenue fund for general revenue purposes.

{ADD Provided, however, that in the year 2006 and in each year thereafter, the one cent ($.01) identified above shall not be paid into the general revenue fund for general revenue purposes but shall remain in the intermodal surface transportation fund. ADD}

(3) In determining the rate for the period June 1, 1981 through December 31, 1981, the tax administrator shall fix the rate based on the wholesale selling price of motor fuel sold during the first quarter of 1981 and from other relevant data. The rate for this period shall be fixed during the month of May, 1981. Every year, during the months of March, June, September, and December, commencing with June 1982, the tax administrator shall fix a new tax for motor fuel. The tax administrator shall fix the tax rate during June of a particular year based on motor fuel sold during April of that same year. The tax administrator shall fix the tax rate during September based on motor fuel sold during July of that same year. The tax administrator shall fix the tax rate during December of a particular year based on motor fuel sold during October of that same year. The tax administrator shall fix the tax rate during March of a particular year based on motor fuel sold during January of that same year. The tax rate fixed by the tax administrator during June of a particular year is the tax rate for the three (3) month period that begins on July 1 of that same year. The tax rate fixed by the tax administrator during September of a particular year is the tax rate for the three (3) month period that begins on October 1 of that same year. The tax rate fixed by the tax administrator during December of a particular year is the tax rate for the three (3) month period that begins on January 1 of the immediately following year.

(4) The tax rate fixed by the tax administrator during March of a particular year is the tax rate for the three (3) month period that begins on April 1 of that same year.

(c) The tax administrator shall fix the tax rate for motor fuel in the manner prescribed in the following steps:

(1) STEP ONE: Enter the number of gallons of taxable gasoline sold during April, July, October, or January as the case may be.

(2) STEP TWO: Enter the remainder of (A) the total amount of money received from the wholesale selling price of the gasoline described in step one, minus (B) the portion of that total amount which represents federal and state excise taxes imposed thereon.

(3) STEP THREE: Enter the quotient of (A) the remainder determined under step two, divided by (B) the number of gallons entered under step one.

(4) STEP FOUR: (i) For the period referred to in subsection (b)(1) above, enter the product of (A) the greater of (1) one dollar ($1.00) or (2) the quotient determined under step three, multiplied by (B) the applicable rate set forth in subsection (b) above of this section.

(ii) For the period referred to in subsection (b)(2) above, enter the product of (A) the greater of (1) two dollars and twenty-eight cents ($2.28) or (2) the quotient determined under step three, multiplied by (B) the applicable rate set forth in subsection (b) above.

(5) The product entered under step four, with any fraction of a cent to be rounded to the next higher cent, is the tax rate per gallon of motor fuel for the appropriate three (3) month period specified in subsection (b).

(6) Additionally, every distributor shall, at the time of payment of the foregoing tax, pay over to the tax administrator an excise tax in an amount equal to two percent (2%) of the wholesale price per gallon of the fuels. The wholesale price shall be that price as determined by the tax administrator consistent with the provisions of this chapter, and all the provisions of this chapter shall apply to this levy. In no event shall the excise tax imposed be less than three cents ($.03) per gallon.

(d) For purposes of this section the term "wholesale selling price" shall mean the delivered price exclusive of federal and state excise taxes and exclusive of any additional charges in excess of the regular wholesale selling price.

(e)(1) It shall be unlawful, except in proceedings before a court of competent jurisdiction or to collect the taxes or enforce the penalties provided by this chapter of this title, for the tax administrator or any person having an administrative duty under the chapters, to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any distributor or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person; provided, however, the tax administrator may authorize examination of his or her records and the returns filed with him or her by the tax authorities of another state or of the federal government, if a reciprocal arrangement exists.

(2) Provided, further, that nothing herein shall be construed to prevent the disclosure or publication of statistical or other information wherein the identity of individual taxpayers is not made known.

(f)(1)(i) Pursuant to rules and regulations prescribed by the tax administrator, the distributor shall pay within five (5) calendar days following the close of each taxable period, as hereinafter defined, the amount of tax due on fuels for the period. A taxable period shall mean the 1st through 22nd day of the first month of the calendar quarter, the 23rd day of the first month through the 22nd day of the second month of the calendar quarter, and 23rd of the second month through the 22nd day of the third month of a calendar quarter.

(ii) The distributor shall file a tax return on or before the twentieth day of the month following the close of each calendar quarter. Taxes accruing from the 23rd through the last day of the third month of the quarter shall be paid with the return.

(iii) The difference between the actual amount of tax liability for the entire quarter and the sum of the amounts previously paid for that quarter shall be reconciled at the time of filing the return. If the amount of tax liability exceeds payments previously made for the quarter, the balance of the tax shall be paid over to the tax administrator with the filing of the quarterly return. If the amount of payment previously made exceeds the tax liability for the quarter, credit for the overpayment shall be applied to the next payment due.

(2) A distributor will be considered to have complied with the requirements of subsection (f)(1) with respect to the close of a calendar quarter if either the distributor's payments for the taxable periods during the calendar quarter total not less than ninety percent (90%) of the tax liability for the calendar quarter period or each taxable period payment is equal to one hundred percent (100%) of the tax liability for the comparable period of the next prior year. This latter alternative shall not apply to a distributor who had no tax liability for the comparable period of the next prior year.

(3) In case of failure by any person required to pay on the date prescribed therefor any amount of taxes with the tax administrator under this subsection, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be imposed upon the person a penalty of five percent (5%) of the amount of the underpayment. For purposes of this subdivision the term "underpayment" means the excess of the amount of tax required to be paid over the amount, if any, thereof paid on or before the due date.

(4) Additions to tax. In case of failure:

(i) To file any return required by this section on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as a payment or as tax on the return, five percent (5%) of the amount if the failure is for not more than one month, with an additional five percent (5%) for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate;

(ii) To pay the amount shown as payment or tax on any return specified in subsection (f)(4)(i) on or before the date prescribed for payment of the tax (determined with regard to any extension of time for payment), unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return, five-tenths percent (0.5%) of the amount if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate; or

(iii) To pay any amount in respect of any tax required to be shown on a return specified in subsection (f)(4)(i) which is not so shown (including an assessment made as a result of mathematical error) within ten (10) days of the date of the notice and demand therefor, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in the notice and demand, five-tenths percent (0.5%) of the amount if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate.

(5) Limitations and special rule.

(i) With respect to any return, the amount of the addition under subsection (f)(4)(i) shall be reduced by the amount of the addition under subsection (f)(4)(ii) for any month to which an addition to tax applies under subsections (f)(4)(i) and (f)(4)(ii).

(ii) With respect to any return, the maximum amount of the addition permitted under of subsection (f)(4)(i) shall be reduced by the amount of the addition under of subsection (f)(4)(ii) which is attributable to the tax for which the notice and demand is made and which is not paid within ten (10) days of notice and demand.

(iii) The additions set forth in subsection (f) shall be in lieu of the ten percent (10%) penalties prescribed in section 31-36-9(2) and (10). Interest prescribed in section 44-1-7 shall be applicable.

(6) Federal requirements. In the event the federal government requires a certain portion of the gasoline tax to be dedicated for highway improvements, then the state controller is hereby directed to establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings the state into federal compliance.

SECTION 3. This article shall take upon passage.

SECTION 1. 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 hereby imposed a hospital licensing fee at the rate of two {DEL and twenty hundredths DEL} percent {DEL (2.20%) DEL} {ADD (2.0%) ADD} upon the gross patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, {DEL 1993 DEL} {ADD 1995 ADD} . 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 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator on {DEL June 15, 1997 DEL} {ADD October 31, 1997, ADD} 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. Every hospital shall, on or before {DEL April 1, 1997 DEL} {ADD October 1, 1997 ADD} , make a return to the tax administrator containing the correct computation of gross patient services revenue and the licensing fee due upon such amount. All returns shall be signed by the hospital's authorized representative, subject to the pains and penalties of perjury.

(b) For purposes of this section the following words and phrases shall have the following meaning:

(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.

(c) The tax administrator shall make and promulgate such rules, regulations, and procedures not inconsistent with state law and fiscal procedures as he or she deems necessary for the proper administration of this section and to carry out the provisions, policy and purposes thereof.

SECTION 2. This article shall take effect on July 1, 1997 and shall apply to hospitals, as defined in Section 1, which are duly licensed on July 1, 1997. The licensing fee imposed by Section 1 shall be in addition to the inspection fee imposed by Section 23-17-38 and to any licensing fees previously imposed and collected in accordance with section 23-17-38.1.

SECTION 1. Section 1 of Chapter 16 of the 1997 Public Laws entitled "Revised Appropriations" relating specifically to the appropriations of the Department of Human Services, Rhode Island State Council on the Arts, the General Revenue total, Federal total, Restricted Receipts total and the grand total is hereby amended to read as follows:

HUMAN SERVICES
Central Management
General Revenue Funds Total	228,229
Federal Funds
Head Start	100,000
Federal Funds Total	100,000
Restricted Receipts
Indirect Cost Recovery-Central Mgt.	438,999
Restricted Receipts Funds Total	438,999
Total - Central Management	767,228
Economic and Social Services
General Revenue Funds Total	2,333,825
Federal Funds
Food Stamps	519,438
Fam. Support Pymts. to States/Asst. Pymts.	1,709,120
State Legalization Impact Assis. Grants	(90,000)
Refugee & Entrant Assis. State Adm. Prog.	(172,768)
Social Services Block Grant	(866,802)
Federal Funds Total	1,098,988
Restricted Receipts
Food Stamp Bonus	420,000
Restricted Receipts Fund Total	420,000
Total - Economic and Social Service	3,852,813
Community Services (Individual & Family Services)
General Revenue Funds Total	661,685
Federal Funds
Child & Adult Care Food Program	(26,830)
Rehab. Services - Basic Support	272,530
Independent Living - state Grant	(73,994)
Rehabilitation Serv.-Older Blind Individuals	51,121
State Grants for Tech.-Related Assis.	(15,450)
Fam. Support Pymts. to States/Asst. Pymts.	955,176
Job Opportunities & Basic Skills Trng.	587,986
Child Care-Fam. At-Risk of Welfare Depend.	160,448
Pymts. to States for Child Care Assist.	502,601
Social Services Block Grant	(343,030)
Social Security - Disability Insurance	670,462
Federal Funds Total	2,741,020
Restricted Receipts
Indirect Cost Rec.-Community Serv.	(339,855)
Urban Institute	14,950
Employment and Training	67,876
Restricted Receipts Funds Total	(257,029)
Total-Community Services	3,145,676
Veterans' Affairs
General Revenue Funds Total	1,112,177
Federal Funds
Grants to States for Const./State Home Fac.	(581,815)
Veterans' Domiciliary Care	22,846
Social Services Block Grant	3,304
Federal Funds Total	(555,665)
Restricted Receipts
Indirect Cost Recovery-Vet. Affairs	(65,366)
Restricted Receipts Funds Total	(65,366)
Total - Veterans' Affairs	491,146
Medical Services Administration
General Revenue Funds Total	1,543,092
Federal Funds
Medical Assistance Program-Title XIX	3,065,447
Federal Funds Total	3,065,447
Total-Medical Services Admin.	4,608,539
Management Services
General Revenue Funds Total	356,500
Federal Funds
Community Services Block Grant	269,903
Emerg. Comm. Services for Homeless	(135,662)
Federal Funds Total	134,241
Restricted Receipts
Indirect Cost Recovery-Mgt. Services	53,717
Restricted Receipts Funds Total	53,717
Total-Management Services	544,458
Medical Benefits
General Revenue Funds Total	7,039,840
Federal Funds
Medical Assis. Prog.-Title XIX	545,321
Federal Funds Total	545,321
Restricted Receipts
Total-Medical Benefits	7,585,161
S.S.I. Program
General Revenue Funds Total	(1,093,278)
Total: S.S.I. Program	(1,093,278)
AFDC Benefits (Temporary Assistance for Needy Families)
General Revenue Funds Total	(6,270,276)
Federal Funds
Fam. Support Pymts. to States/Asst. Pymts.	(1,045,677)
Temporary Assistance for Needy Families	6,000,000
Federal Funds Total	4,954,323
Total - AFDC Benefits	(1,315,953)
General Public Assistance
General Revenue Funds Total	(708,612)
Total - General Public Assistance	(708,612)
Total - General Revenue Funds	5,203,182
Grand Total: Human Services	17,877,178
Rhode Island State Council on the Arts
Federal Funds
Promotion of the Arts - Arts in Education	(22,760)
Promotion of the Arts - State & Reg. Program	38,276
Tech Prep Education	25,000
Promotion of the Arts-Folk and Trad. Arts	1,745
Federal Funds Total	42,261
Restricted Receipts
Art for Public Facilities Fund	16,000
Restricted Receipts Funds Total	16,000
Grand Total: R.I. State Council on the Arts	58,261
General Revenue Total	26,314,927
Federal Total	57,396,287
Restricted Receipts Total	14,206,173
Other Funds Total	13,429,293
Grand Total	111,346,680

SECTION 2. This article is effective upon passage and is retroactive to May 14, 1997.

SECTION 1. Section 13-7-15 of the General Laws in Chapter 13-7 entitled "Prisoner Made Goods" is hereby amended to read as follows:

13-7-15. Business operations and budget. -- Correctional industries shall maintain an accurate and timely accounting of monies received from the sale of products or services of committed offenders. Monies accredited into the correctional industries fund shall be used for the purchase of materials, supervision, and other requirements necessary to support the production of goods and services. All expenditures from the correctional industry fund shall be subject to the approval of the director of corrections or his or her designee, who may employ those funds to defray all operating expenses. {DEL Fifty percent (50%) of the total net profits for the fiscal year, up to a maximum of fifty thousand dollars ($50,000.00), DEL} {ADD All net profits for the fiscal year ADD} shall be reinvested into the correctional industries fund to support capital purchases, and the general expansion and development of correctional industries. {DEL All additional profits will revert to the general treasury. DEL}

SECTION 2. This article shall take effect July 1, 1997.

SECTION 1. Section 39-3-11.2 of the General Laws in Chapter 39-3 entitled "Regulatory Powers of Administration" is hereby amended to read as follows:

39-3-11.2. Interim rates. -- Notwithstanding the provisions of titles 23 and 39, the municipal tipping fee charged by the {DEL solid waste management DEL} {ADD resource recovery ADD} corporation shall be thirty-two dollars ($32.00) per ton {DEL from July 1, 1996 until June 30, 1997 DEL} {ADD from July 1, 1997 and thereafater. ADD}

SECTION 2. Notwithstanding section 31-36-20 of the general laws, the state controller is hereby authorized to transfer from the resource recovery corporation the sum of two million dollars ($2,000,000) to the state general fund on February 15, 1998.

SECTION 3. This article shall take effect July 1, 1997.

SECTION 1. Sections 44-20-12, 44-20-12.1 and 44-20-13 of the general laws in chapter 44-20 entitled "Cigarette Tax" are hereby amended to read as follows:

44-20-12. Tax imposed on cigarettes sold. -- A tax is hereby imposed on all cigarettes sold or held for sale in the state by any person, the payment thereof to be evidenced by stamps affixed to the packages containing the cigarettes as hereinafter provided and as required by the administrator. Any cigarettes on which the proper amount of tax provided for in this chapter has been paid, payment being evidenced by the stamp, shall not be subject to a further tax under this chapter. The tax herein imposed shall be at the rate of {DEL thirty and one-half (30.5) DEL} {ADD thirty-five and one half (35.5) ADD} mills for each cigarette.

44-20-12.1. Cigarette floor stock tax. -- (a) Whenever used in this section, unless context shall otherwise require:

(1) "Cigarette" means and includes any cigarette {DEL suitable for smoking in cigarette form DEL} {ADD as defined in section 44-20-1(2) ADD} ;

(2) "Person" means and includes each individual, firm, fiduciary, partnership, corporation, trust, or association however formed.

(b) Each person engaging in the business of selling cigarettes at wholesale or retail in this state shall pay a tax or excise to the state for the privilege of engaging in such business during any part of the calendar year {DEL 1995 DEL} {ADD 1997 ADD} . The tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on July 1, {DEL 1995 DEL} {ADD 1997 ADD} and shall be computed at the rate of {DEL two and one half (2 1/2) DEL} {ADD five (5) ADD} mills per cigarette.

(c) Each person subject to the payment of the tax herein imposed shall, on or before {DEL September 1, 1995 DEL} {ADD July 14, 1997 ADD} file a return, under oath or certified under the penalties of perjury, with the tax administrator on forms furnished by him or her, showing the amount of cigarettes in such person's possession in this state at 12:01 a.m. on July 1, {DEL 1995 DEL} {ADD 1997 ADD} and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.

(d) The tax administrator may prescribe rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax herein imposed.

44-20-13. Tax imposed on unstamped cigarettes. -- A tax is hereby imposed at the rate of {DEL thirty and one half (30.5) DEL} {ADD thirty-five and one half (35.5) ADD} mills for each cigarette upon the storage or use within this state of any cigarettes not stamped in accordance with the provisions of this chapter in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state.

SECTION 2. This article shall take effect on July 1, 1997.

SECTION 1. Section 41-4-4.1 of the General Laws in Chapter 41-4 entitled "Mutuel Betting and License Fees" is hereby amended to read as follows:

41-4-4.1. Support of racing division activities -- Tax. -- (A) Notwithstanding the provisions of section 41-4-3 or 41-3.1-6 each licensee conducting racing events under the pari-mutuel system shall collect an additional five percent (5%) of all monies wagered on the multiple pools at racing tracks. Multiple pools shall be defined as all forms of wagering other than win, place, and show. This five percent (5%) tax shall be over and above the schedule of taxes as set forth in section 41-4-3, and shall be distributed as follows:

(a) [As amended by P.L. 1995, ch. 370, art. 26, section 1.] One and one half percent (1.5%) shall be paid weekly into a restricted revenue account to be established in the department of business regulation and these proceeds shall be used and restricted to the support of all activities of the division of racing and athletics in the department of business regulation. Tax revenue in excess of one million dollars ($1,000,000) in the account shall revert to the general fund;

(a) [As amended by P.L. 1995, ch. 370, art. 40, section 125.] One and one half percent (1.5%) shall be paid to the department of business regulation and these proceeds shall be deposited as general revenue;

(b) Effective January 1, 1990, one half of one percent (.5%) shall be paid to owners of dog kennels who are under contract with licensee who shall distribute funds to the owners' of dog kennels in a manner consistent with the generally accepted distribution of dog kennel owners' purses subject to an annual audit by the auditor general or his or her designee;

(c) One and one half percent shall be paid to the licensee provided that there is at least three hundred {DEL fifty (350) DEL} {ADD and forty (340) ADD} scheduled performances during the calendar year;

(d) One and one half percent shall be paid to the state of Rhode Island and revert to the general fund.

(B) Notwithstanding the provisions of section 41-3.1-6 each licensee conducting racing events under the pari-mutuel system shall collect an additional four percent (4%) of all moneys wagered on so called straight (win, place, or show) wagering. This four percent (4%) tax shall be over and above the schedule of taxes as set forth in section 41-3.1-6, and shall be distributed as follows:

(a) One percent (1%) shall be paid to the town of Lincoln;

(b) One percent (1%) shall be paid to owners of dog kennels who are under contract with a licensee who shall distribute funds to the owners of dog kennels in a manner consistent with the generally accepted distribution of dog kennel owners' purses subject to an annual audit by the auditor general or his or her designee; and

(c) Two percent (2%) shall be paid to the state of Rhode Island and revert to the general fund.

SECTION 2. Section 41-3.1-10 of the General Laws in chapter 41-3.1 entitled "Dog Racing in Burrillville, Lincoln and West Greenwich" is hereby amended to read as follows:

41-3.1-10. Chemical test. -- There shall be administered to the first finisher, and to one other randomly selected finisher, of every dog race, the appropriate chemical test authorized by the division of racing athletics. The department of health, shall conduct the testing; and is hereby authorized to establish by rule and regulation a reasonable fee structure and procedures required for the chemical testing. {DEL All testing fees shall be paid by the operator of the dog racing facility and shall be deposited as general revenues. DEL} {ADD The operator of the dog racing facility and the Department of Health shall pay for one test each in every dog race. The costs of such test shall be assessed equally to the operator and the department. All monies collected shall be deposited as general revenues. ADD}

SECTION 3. This article shall take effect July 1, 1997.

SECTION 1. Section 44-31-1 of the General Laws in Chapter 44-31 entitled "Investment Tax Credit" is hereby amended to read as follows:

44-31-1. Investment tax credit. -- (a) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by chapters 11, {ADD 14, 17, ADD} and 30 of this title. The amount of the credit shall be two percent (2%) of the cost or other basis for federal income tax purposes of tangible personal property and other tangible property, including buildings and structural components of buildings, described in subsection (b) of this section, acquired, constructed, reconstructed, or erected after December 31, 1973. Provided however, the amount of the credit shall be four percent (4%) of the{ADD : (1) ADD} cost or other basis for federal income tax purposes of tangible personal property and other tangible property, including buildings and structural components of buildings, described in subsection (b){ADD (1) ADD} of this section, acquired, constructed, reconstructed or erected after December 31, 1993 {DEL . DEL} {ADD ; and (2) qualified amounts for leased assets of tangible personal property and other tangible property described in subsection (b)(1) of this section, acquired, constructed, reconstructed or erected after January 1, 1998, and the amount of the credit shall be ten (10%) percent of the cost or other basis for federal income tax purposes, and the qualified amounts for leased assets, of tangible personal property and other tangible property described in subsection (b)(3) of this section, acquired, constructed, reconstructed or erected after January 1, 1998. ADD}

(b)(1) A credit shall be allowed under this section with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which are depreciable pursuant to 26 U.S.C. section 167, have a useful life of four (4) years or more, are acquired by purchase as defined in 26 U.S.C. section 179(d) {ADD or are acquired by lease as set forth in subsection (b)(3)(c) of this section ADD} , have a situs in this state and are principally used by the taxpayer in the production of goods by manufacturing, processing, or assembling. The credit shall be allowable in the year the property is first placed in service by the taxpayer, which is the year in which, under the taxpayer's depreciation practice, the period for depreciation with respect to the property begins, or the year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function, whichever is earlier. For purposes of this paragraph, manufacturing shall mean the process of working raw materials into wares suitable for use or which gives new shapes, new quality or new combinations to matter which already has gone through some artificial process by the use of machinery, tools, appliances, and other similar equipment. Property used in the production of goods shall include machinery, equipment, or other tangible property which is principally used in the repair and service of other machinery, equipment, or other tangible property used principally in the production of goods and shall include all facilities used in the production operation, including storage of material to be used in production and of the products that are produced.

(2) Within the meaning of the preceding paragraph, the term "manufacturing" shall mean the activities of a "manufacturer" as defined in section 44-3-3(c) and 44-3-3(d).

{ADD (3)(a) A credit shall be allowed under this section with respect to tangible personal property and other tangible property, excluding buildings and structural components of buildings, motor vehicles and furniture, which are depreciable pursuant to 26 U.S.C. section 167, have a useful life of four (4) years or more, are acquired by purchase as defined in 26 U.S.C. section 179(d) or acquired by lease as set forth in subsection (b)(3)(c) of this section, have a situs in this state and to the extent such property is used by a qualified taxpayer, as that term is defined in subsection (b)(3)(d) of this section, in any of the businesses described in major groups 20 through 39, 50 and 51, 60 through 67, 73, 76, 80 through 82, 87 and 89 in the standard industrial classification manual prepared by the technical committee on industrial classification, office of the statistical standards, executive office of the president, United States bureau of the budget, as revised from time to time ("SIC Code") and/or any of the businesses described in the three (3) digit SIC Code 781.

For purposes of this section, sales to customers outside the state is defined to mean sales to individuals, businesses and other entities, as well as divisions and/or branches of businesses and other entities, residing or located outside of the state. Notwithstanding the foregoing, the requirement of subsection (b)(3)(d)(1) shall not apply to any qualified taxpayer: (i) whose expenses for training or retraining its employees exceeds two percent (2%) of such qualified taxpayer's total payroll costs; or (ii) whose median annual wage paid to its full-time equivalent employees is equal to or greater than one hundred twenty-five percent (125%) of the average annual wage paid in this state by employers to employees; or (iii), with respect to major groups 20 through 39 only, the average annual wage paid to such Qualified Taxpayer's full-time equivalent employees, classified as production workers by the Rhode Island Department of Labor and Training, is above the average annual wage paid to the production workers of all such taxpayers in the state which share the same two-digit SIC Code. At the election of a taxpayer, which shall be made at such time and in such manner as may be determined by the tax administrator, the taxpayer's ability in a particular fiscal year to qualify as a qualified taxpayer may be based on the expenses and gross receipts of the taxpayer for either the prior fiscal year or the immediately proceeding fiscal year rather than on the expenses and gross receipts for that fiscal year. For purposes of this Article, the director of Rhode Island Human Resource Investment Council shall certify as to legitimate training and retraining expenses in accordance with the guidelines set forth in Rhode Island General Laws Title 42, Chapter 64.6 and any rules and regulations promulgated thereto. For purposes of this subsection, a full time equivalent employee is defined to mean an employee who works a minimum of 30 hours per week within the state or two (2) part-time employees who together work a minimum of 30 hours per week within the state. For purposes of this subsection, the director of the Rhode Island Department of Labor and Training, upon receipt of an application from a Qualified Taxpayer, shall certify whether such qualified taxpayer meets the requirement in subsection (b)(3)(d)(1) or is exempt from such requirement because the median annual wage it pays its full-time equivalent employees is equal to or greater than one hundred twenty-five (125%) percent of the average annual wage paid in this state by employers to employees or, with respect to major groups 20 through 39 only, the average annual wage paid to such Qualified Taxpayer's full-time equivalent employees, classified as production workers by the Rhode Island Department of Labor and Training, is above the average annual wage paid to the production workers of all such taxpayers in the state which share the same two-digit SIC Code. The director of the Rhode Island Department of Labor and Training shall promulgate such rules and regulations as required for the implementation of this requirement. ADD}

(c) A taxpayer shall not be allowed a credit under subsection (a) with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which it leases to any other person or corporation {DEL or DEL} {ADD and shall not be allowed a credit under subsection (a) of this section with respect to buildings and structural components of buildings it ADD} leases from any other person or corporation. For purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use the property shall be considered a lease, unless a contract or agreement is treated for federal income tax purposes as an installment purchase rather than a lease.

(d) The credit allowed under this subdivision for any taxable year shall not reduce the tax due for the year {ADD by more than fifty percent (50%) of the tax liability that would otherwise be payable, and further in the case of corporations, ADD} to less than the minimum tax as set forth in section 44-11-2(e). However, if the amount of credit allowable under this subdivision for any taxable year {DEL reduces the tax to the minimum tax DEL} {ADD is less than the amount of credit available to the taxpayer ADD} , any amount of credit not deductible in the taxable year may be carried over to the following year or years (not to exceed seven years) and may be deducted from the taxpayer's tax for the year or years.

(e) At the option of the taxpayer, air or water pollution control facilities which qualify for elective amortization deduction may be treated as property principally used by the taxpayer in the production of goods by manufacturing, processing, or assembling, provided the property otherwise qualifies under subsection (b) of this section, in which event, an amortization deduction shall not be allowed.

(f) With respect to property which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in subsection (a) of this section which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. Provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve (12) consecutive years, it shall not be necessary to add back the credit as provided in this subsection. {ADD Provided further that a credit allowed to a qualified taxpayer shall not be recaptured merely because the taxpayer subsequently fails to retain the classification as a qualified taxpayer. ADD} The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the months of useful life. For purposes of this subsection, useful life of property shall be the same as the taxpayer {ADD (or in the case of property acquired by lease, the owner of the property) ADD} uses for depreciation purposes when computing his or her federal income tax liability. {ADD Comparable rules shall be used in the case of property acquired by lease to determine the amount of credit, if any, that will be recaptured if the lease terminates prematurely or if the property covered by the lease otherwise fails to be in qualified use. ADD}

(g) The credit allowed under this subdivision shall only be allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.

SECTION 2. This article shall take effect January 1, 1998.

SECTION 1. Sections 44-32-2 and 44-32-3 of the General Laws in Chapter 44-32 entitled "Elective Deduction for New Research and Development Facilities" is hereby amended to read as follows:

44-32-2. Credit for research and development property acquired, constructed, or reconstructed or erected after July 1, 1994. -- (a) A taxpayer shall be allowed a credit against the tax imposed by chapters 44-11 or 44-30. The amount of the credit shall be ten percent (10%) of the cost or other basis for federal income tax purposes of tangible personal property, and other tangible property, including buildings and structural components of buildings, described in subsection (b) of this section; acquired, constructed or reconstructed, or erected after July 1, 1994.

(b) A credit shall be allowed under this section with respect to tangible personal property and other tangible property, including buildings and structural components of buildings which are: depreciable pursuant to 26 U.S.C. section 167 or recovery property with respect to which a deduction is allowable under 26 U.S.C. section 168, have a useful life of three (3) years or more, are acquired by purchase as defined in 26 U.S.C. section 179(d), have a situs in this state and are used principally for purposes of research and development in the experimental or laboratory sense. The credit shall be allowable in the year the property is first placed in service by the taxpayer, which is the year in which, under the taxpayer's depreciation practice, the period for depreciation with respect to the property begins, or the year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function, whichever is earlier. Such purposes shall not be deemed to include the ordinary testing or inspection of materials or products for quality control, efficiency surveys, management studies, consumer surveys, advertising, promotions, or research in connection with literary, historical or similar projects.

(c) A taxpayer shall not be allowed a credit under this section with respect to any property described in subsections (a) and (b) of this section, if a deduction is taken for such property under section 44-32-1.

(d) A taxpayer shall not be allowed a credit under this section with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which it leases to any other person or corporation. For purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use such property shall be considered a lease.

(e) The credit allowed under this section for any taxable year shall not reduce the tax due for such year, in the case of corporations, to less than the minimum fixed by section 44-11-2(e). However, if the amount of credit allowable under this section for any taxable year {DEL reduces the tax to the minimum fixed by section 44-11-2 (e) DEL} {ADD is less than the amount of credit available to the taxpayer ADD} , any amount of credit not credited in such taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer's tax for such year or years. For purposes of chapter 44-30, if the credit allowed under this section for any taxable year exceeds the taxpayer's tax for such year, the amount of credit not credited in such taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer's tax for such year or years.

(f)(1) With respect to property which is depreciable pursuant to 26 U.S.C. section 167 and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this section which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. Provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve (12) consecutive years, it shall not be necessary to add back the credit as provided in this subparagraph. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the months of useful life. For purposes of this subdivision, useful life of property shall be the same as the taxpayer uses for depreciation purposes when computing his federal income tax liability.

(2) Except with respect to that property to which subdivision (3) of this subsection applies, with respect to three (3) year property, as defined in 26 U.S.C. section 168(c)(2), which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this section which represents the ratio which the months of qualified use bear to thirty-six (36). If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of thirty-six (36) months, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to thirty-six (36).

(3) With respect to any recovery property to which 26 U.S.C. section 168 applies, which is a building or a structural component of a building and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this section which represents the ratio which the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under 26 U.S.C. section 168. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of the period over which the taxpayer chooses to deduct the property under 26 U.S.C. section 168, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. Provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve (12) consecutive years, it shall not be necessary to add back the credit as provided in this subdivision. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under 26 U.S.C. section 168.

(g) No deduction for research and development facilities under section 44-32-1 shall be allowed for research and development property for which the credit is allowed under this section.

(h) No investment tax credit under section 44-31-1 shall be allowed for research and development property for which the credit is allowed under this section.

(i) The investment tax credit allowed by section 44-31-1 shall be taken into account before the credit allowed under this section.

(j) The credit allowed under this section shall only be allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated return.

(k) In the event that the taxpayer is a partnership, joint venture or small business corporation, the credit shall be divided in the same manner as income.

44-32-3. Credit for qualified research expenses. -- (a) A taxpayer shall be allowed a credit against the tax imposed by chapters 11 or 30 of this title. The amount of the credit shall be five percent (5%) {ADD (and in the case of amounts paid or accrued after January 1, 1998, twenty-two and one-half percent (22.5%) for the first twenty-five thousand dollars ($25,000) worth of credit and sixteen and nine-tenths percent (16.9%) for the amount of credit above twenty-five thousand dollars ($25,000)) ADD} of the excess, if any, of:

(1) The qualified research expenses for the taxable year, over

(2) The base period research expenses.

(b) The terms "qualified research expenses" and "base period research expenses" shall have the same meaning as defined in 26 U.S.C. section 41, provided, however, that such expenses shall have been incurred in this state after July 1, 1994.

(c) The credit allowed under this section for any taxable year shall not reduce the tax due for such year {ADD by more than fifty percent (50%) of the tax liability that would otherwise be payable, and further ADD} , in the case of corporations, to less than the minimum fixed by section 44-11-2 (e). However, if the amount of credit allowable under this section for any taxable year {DEL reduces the tax to the minimum fixed by section 44-11-2 (e) DEL} {ADD is less than the amount of credit available to the taxpayer ADD} , any amount of credit not credited in such taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer's tax for such year or years. For purposes of chapter 30 of this title, if the credit allowed under this section for any taxable year exceeds the taxpayer's tax for such year, the amount of credit not credited in such taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer's tax for such year or years. For purposes of determining the order in which carry-overs shall be taken into consideration, the credit allowed by section 44-32-2 shall be taken into account before the credit allowed under this section.

(d) The investment tax credit allowed by section 44-31-1 shall be taken into account before the credit allowed under this section.

(e) The credit allowed under this section shall only be allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated return.

(f) In the event the taxpayer is a partnership, joint venture or small business corporation, the credit shall be divided in the same manner as income.

SECTION 2. This article shall take effect January 1, 1998.

SECTION 1. Section 31-6-1 of the General Laws in Chapter 31-6 entitled "Registration Fees" is hereby amended to read as follows:

31-6-1. Amount of registration and miscellaneous fees. -- (a) The following registration fees shall be paid to the registry for the registration of motor vehicles, trailers, semitrailers, and school buses subject to registration for each year of registration:

(1) For the registration of every automobile, when equipped with pneumatic tires, thirty dollars ($30.00);

(2) For the registration of every motor truck or tractor when equipped with pneumatic tires, the gross weight of which is not more than four thousand pounds (4,000 lbs.), thirty-four dollars ($34.00);

More than four thousand pounds (4,000 lbs.), but not more than five thousand pounds (5,000 lbs.), forty dollars ($40.00);

More than five thousand pounds (5,000 lbs.), but not more than six thousand pounds (6,000 lbs.), forty-eight dollars ($48.00);

More than six thousand pounds (6,000 lbs.), but not more than seven thousand pounds (7,000 lbs.), fifty-six dollars ($56.00);

More than seven thousand pounds (7,000 lbs.), but not more than eight thousand pounds (8,000 lbs.), sixty-four dollars ($64.00);

More than eight thousand pounds (8,000 lbs.), but not more than nine thousand pounds (9,000 lbs.), seventy dollars ($70.00);

More than nine thousand pounds (9,000 lbs.), but not more than ten thousand pounds (10,000 lbs.), seventy-eight dollars ($78.00);

More than ten thousand pounds (10,000 lbs.), but not more than twelve thousand pounds (12,000 lbs.), one hundred six dollars ($106.00);

More than twelve thousand pounds (12,000 lbs.), but not more than fourteen thousand pounds (14,000 lbs.), one hundred twenty-four dollars ($124.00);

More than fourteen thousand pounds (14,000 lbs.), but not more than sixteen thousand pounds (16,000 lbs.), one hundred forty dollars ($140.00);

More than sixteen thousand pounds (16,000 lbs.), but not more than eighteen thousand pounds (18,000 lbs.), one hundred fifty-eight dollars ($158.00);

More than eighteen thousand pounds (18,000 lbs.), but not more than twenty thousand pounds (20,000 lbs.), one hundred seventy-six dollars ($176.00);

More than twenty thousand pounds (20,000 lbs.), but not more than twenty-two thousand pounds (22,000 lbs.), one hundred ninety-four dollars ($194.00);

More than twenty-two thousand pounds (22,000 lbs.), but not more than twenty-four thousand pounds (24,000 lbs.), two hundred ten dollars ($210.00);

More than twenty-four thousand pounds (24,000 lbs.), but not more than twenty-six thousand pounds (26,000 lbs.), two hundred thirty dollars ($230.00);

More than twenty-six thousand pounds (26,000 lbs.), but not more than twenty-eight thousand pounds (28,000 lbs.), two hundred ninety-six dollars ($296.00);

More than twenty-eight thousand pounds (28,000 lbs.), but not more than thirty thousand pounds (30,000 lbs.), three hundred sixteen dollars ($316.00);

More than thirty thousand pounds (30,000 lbs.), but not more than thirty-two thousand pounds (32,000 lbs.), four hundred and twenty-two dollars ($422.00);

More than thirty-two thousand pounds (32,000 lbs.), but not more than thirty-four thousand pounds (34,000 lbs.), four hundred and forty-eight dollars ($448.00);

More than thirty-four thousand pounds (34,000 lbs.), but not more than thirty-six thousand pounds (36,000 lbs.), four hundred and seventy-six dollars ($476.00);

More than thirty-six thousand pounds (36,000 lbs.), but not more than thirty-eight thousand pounds (38,000 lbs.), five hundred and two dollars ($502.00);

More than thirty-eight thousand pounds (38,000 lbs.), but not more than forty thousand pounds (40,000 lbs.), five hundred and twenty-eight dollars ($528.00);

More than forty thousand pounds (40,000 lbs.), but not more than forty-two thousand pounds (42,000 lbs.), five hundred and fifty-four dollars ($554.00);

More than forty-two thousand pounds (42,000 lbs.), but not more than forty-six thousand pounds (46,000 lbs.), six hundred and eight dollars ($608.00);

More than forty-six thousand pounds (46,000 lbs.), but not more than fifty thousand pounds (50,000 lbs.), six hundred and sixty dollars ($660.00);

More than fifty thousand pounds (50,000 lbs.), but not more than fifty-four thousand pounds, (54,000 lbs.), seven hundred and twelve dollars ($712.00);

More than fifty-four thousand pounds (54,000 lbs.), but not more than fifty-eight thousand pounds (58,000 lbs.), seven hundred and sixty-eight dollars ($768.00);

More than fifty-eight thousand pounds (58,000 lbs.), but not more than sixty-two thousand pounds (62,000 lbs.), eight hundred and sixteen dollars ($816.00);

More than sixty-two thousand pounds (62,000 lbs.), but not more than sixty-six thousand pounds (66,000 lbs.), eight hundred and seventy-six dollars ($876.00);

More than sixty-six thousand pounds (66,000 lbs.), but not more than seventy thousand pounds (70,000 lbs.), nine hundred and twenty-four dollars ($924.00);

More than seventy thousand pounds (70,000 lbs.), but not more than seventy-four thousand pounds (74,000 lbs.), nine hundred and seventy-two dollars ($972.00);

Over seventy-four thousand pounds (74,000 lbs.), nine hundred and seventy-two dollars ($972.00) plus twenty-four dollars ($24.00) per two thousand pound (2,000 lbs.) gross weight;

(3) For the registration of every semi-trailer to be used with a truck-tractor as defined in section 31-1-4(a) shall be as follows; an annual fee of twelve dollars ($12.00) for a one (1) year registration, for multi-year registrations the fee of fifty dollars ($50.00) for a five (5) year registration and eighty dollars ($80.00) for an eight (8) year registration; provided that when in use the weight of the resulting semitrailer unit and its maximum carrying capacity shall not exceed the gross weight of the original semitrailer unit from which the gross weight of the tractor was determined{ADD. ADD} {DEL , DEL} {DEL a DEL} {ADD A ADD} registration certificate and registration plate shall be issued for each semitrailer so registered. There shall be no refund of payment of such fee, except that when a plate is returned prior to ninety (90) days before effective date of that year's registration, the pro rate amount, based on the unused portion of the multi-year registration plate period at time of surrender, shall be refunded. A multi-year semi-trailer registration may be transferred to another semi-trailer subject to the provisions and fee set forth in section 31-6-11. Thirty percent (30%) of semi-trailer registration fee shall be retained by the Division of Motor Vehicles to defray the costs of implementation of the International Registration Plan (IRP) and fleet registration section.

(4) For the registration of every automobile, motor truck, or tractor, when equipped with other than pneumatic tires, there shall be added to the above gross weight fees a charge of ten cents (10 cents) for each one hundred (100) pounds of gross weight.

(5) For the registration of every public bus, the rates provided for motor vehicles for hire plus two dollars ($2.00) for each passenger which that bus is rated to carry, the rating to be determined by the registrar.

(6) For the registration of every motorcycle, or motor driven cycle, thirteen dollars ($13.00). Three ($3.00) dollars from that sum shall be turned over to the department of education to assist in the payment of the cost of the motorcycle drivers education program as enumerated in section 31-10.1-1.1.

(7) For the registration of every trailer not including semi-trailers used with a truck-tractor as defined in section 31-1-4(a), with a gross weight of three thousand pounds (3,000 lbs.) or less, five dollars ($5.00). Trailers with a gross weight of more than three thousand pounds (3,000 lbs.) shall be assessed a registration fee of one dollar and fifty cents ($1.50) per thousand pounds (1,000 lbs.).

(8) The annual registration fee for a motor vehicle, commonly described as a boxcar and/or locomotive, and used only by La Societe des 40 Hommes et 8 Chevaux for civic demonstration, parades, convention purposes or social welfare work, shall be two dollars ($2.00).

(9) For the registration of every motor vehicle, trailer, or semitrailer owned by any department or agency of any city or town or district thereof, provided the name of the city or town or district or state department or agency owning the same shall be plainly printed on two (2) sides of the vehicle, two dollars ($2.00).

(10) For the registration of motor vehicles used for racing, fifteen dollars ($15.00).

(11) For every duplicate registration certificate, one dollar ($1.00).

(12) For every certified copy of a registration certificate or application thereof, one dollar ($1.00).

(13) For every certificate assigning a special identification number or mark as provided in section 31-3-37, one dollar ($1.00).

(14) For every replacement of number plates or additional pair of number plates, without changing the number, five dollars ($5.00).

(15) For the registration of every farm vehicle, used in farming as provided in section 31-3-31, ten dollars ($10.00).

(16) For the registration of antique motor cars, five dollars ($5.00).

(17) For the registration of a suburban vehicle, when used as a pleasure vehicle, the same rates as charged in subsection (a)(1) above shall be applicable and when used as a commercial vehicle, the same rates as provided in subsection (a)(2) above shall be applicable.

(18) For the registration of every motor bus which is used exclusively under contract with a political subdivision or school district of the state for the transportation of school children, three dollars ($3.00); provided, that any such motor bus may also be used for the transportation of persons to and from church and Sunday school services, and for the transportation of children to and from educational or recreational projects sponsored by a city or town or by any association or organization supported wholly or in part by public or private donations for charitable purposes, without the payment of additional registration fee.

(19) For the registration of every motorized bicycle, ten dollars ($10.00).

(20) For the registration of every motorized tricycle, ten dollars ($10.00).

(21) For the replacement of number plates with a number change, five dollars ($5.00).

(22) For any over-the-counter registration renewal transaction, an additional ten dollars ($10.00).

(23) For the initial issuance and each reissuance thereafter of fully reflective plates as required by sections 31-3-10 and 31-3-32, an additional six dollars ($6.00).

(b) In the event that the registrant voluntarily cancels his registration within the period of registration, the division of motor vehicles shall refund only that portion of the fee paid which represents full year segments of the registration fee paid.

{ADD (24) For the issuance of a trip permit under the International Registration Plan, twenty-five dollars ($25.00) per vehicle. The Division of Motor Vehicles is authorized to issue seventy-two (72) hour trip permits for vehicles required to be registered in the International Registration Plan that have not been apportioned with the state of Rhode Island.

(25) For the issuance of a hunter's permit under the International Registration Plan, twenty-five dollars ($25.00) per vehicle. The Division of Motor Vehicles is authorized to issue hunter's permits for motor vehicles based in the state of Rhode Island and otherwise required to be registered in the International Registration Plan. Such permits are valid for thirty (30) days. ADD}

SECTION 2. This article shall take effect July 1, 1997.

SECTION 1. Section 42-66.3-5 of the General Laws in chapter 42-66.3 entitled "Home and Community Care Services to the Elderly" is hereby amended to read as follows:

42-66.3-5. Amount of co-payment. -- The state shall pay sixty percent (60%) of the maximum allowable amount per service as formulated in the contract, as of the date of purchase of the service between the contractor and department of elderly affairs. The director may promulgate rules and regulations for special circumstances which allow the state to pay {DEL eighty percent (80%) DEL} {ADD ninety percent (90%) ADD} of the maximum allowable amount per service as formulated in the contract, as of the date of purchase of the service between the contractor and the department of elderly affairs. Rules and regulations for special circumstances dealing with this section shall consider the client's needs and ability to pay.

SECTION 2. This article shall take effect July 1, 1997.

SECTION 1. Section 42-75-8 of the General Laws in Chapter 42-75 entitled "Council on the Arts" is hereby amended to read as follows:

42-75-8. Authority of commission. -- The commission is hereby authorized and empowered to hold public and private hearings, to enter into contracts, within the limit of funds available therefor, with individuals, organizations, and institutions for services furthering the objectives of the commission's programs; to enter into contracts, within the limit of funds available therefor, with local and regional associations for cooperative endeavors furthering the objectives of the commission's programs; to accept gifts, contributions, and bequests of unrestricted funds from individuals, foundations, corporations, and other organizations or {ADD institutions ADD} which shall be deposited as general revenues to make and sign any agreements and to do and perform any acts that may be necessary to carry out the purposes of this act. The commission may request and shall receive from any department, division, board, bureau, commission, or agency of the state such assistance and data as will enable it properly to carry out its powers and duties hereunder. The commission may empanel such advisors as it deems necessary.

SECTION 2. Notwithstanding the provisions of section 42-75-8, for fiscal year 1998, all gifts, contributions, and bequests of unrestricted funds received shall be deposited as restricted receipts to support the thirtieth (30th) anniversary of the Arts Council celebration. The restricted receipt account instituted for the support of the thirtieth (30th) anniversary celebration shall not be subject to the provisions of the indirect cost recoveries provisions set forth in section 35-4-27. For fiscal year 1999 and thereafter, all funds received shall be deposited as general revenues.

SECTION 3. This article shall take effect July 1, 1997.

SECTION 1. Section 42-63.1-6 of the General Laws in Chapter 42-63.1 entitled "Rhode Island Tourism and Development" is hereby repealed in its entirety.

{DEL 42-63.1-6. Roger Williams reserve program. -- DEL} {DEL For the fiscal year beginning July 1, 1996, all monies appropriated for the Roger Williams reserve program shall be made available immediately and are hereby specifically appropriated to the department of environmental management for the preservation of "open spaces" including, but not limited to, the acquiring of development rights for farmland, the preservation of historical sites, the development and/or acquiring of space for parks and recreational purposes, and operations and maintenance of historically important parks and facilities, including, but not limited to, Fort Adams State Park, Brenton Point State Park, Roger Williams Improvement Fund, Purgatory Chasm and the Rhode Island State House.

The director shall submit to the house fiscal advisor and senate fiscal advisor by January 15 of each year a detailed report on the amount of funds in the Roger Williams reserve program and the uses made of such funds. DEL}

SECTION 2. This article shall take effect upon passage."

SECTION 1. Section 42-99-9 of the general laws in chapter 42-99 entitled "The Convention Center Authority Act" is hereby amended to read as follows:

42-99-9. Bonds and notes of the corporation. -- (a) The corporation is authorized to issue its negotiable bonds and notes from time to time for any of its corporate purposes; provided, however that said authorization be limited to the sum of two hundred ninety million dollars ($290,000,000) exclusive of bonds or notes issued to fund any debt service reserve fund, operating reserve fund, underwriters' discount or credit enhancement fees for such bonds or notes and further in no event shall said capitalization exceed the gross sum of three hundred twenty-three million dollars ($323,000,000); provided, further, however there shall be excluded from any calculation of the foregoing limitations, the principal amount of any bond anticipation notes retired with the proceeds of notes or bonds, as well as the principal amount of any bonds issued by the corporation for the purpose of refunding prior outstanding bonds as well as the principal amount of any other obligation issued to fund operating reserve accounts {ADD or debt service reserve accounts. ADD} All bonds and notes issued by the corporation may be secured by the full faith and credit of the corporation or may be payable solely out of the revenues and receipts derived from the lease, mortgage, or sale by the corporation of its facilities or of any part thereof or from any other financing arrangement with respect thereto as may be designated in the proceedings of the corporation under which the bonds or notes shall be authorized to be issued. The bonds and notes may be executed and delivered by the corporation at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in bearer form or in registered form, as to principal and interest or as to principal alone, may be payable in such installments and at such time or times and at such places whether within or without eh state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the corporation under which the bonds shall be authorized to be issued; provided, however, that bonds of the corporation shall be payable not more than forty (40) years from the date thereof and notes shall be payable not more than ten (10) years from the date thereof. If deemed advisable by the corporation, there may be retained in the proceedings under which any bonds or notes of the corporation are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be recited in the face of the bonds or notes, but nothing herein contained shall be construed to confer on the corporation any right or option to redeem any bonds or notes except as may be provided in the proceedings under which they shall be issued. Any bonds or notes of the corporation may be sold at such price or prices, at public or private sale, in such manner and from time to time as may be determined by the corporation, and the corporation may pay all expenses, premiums, and commissions which it may deem necessary or advantageous in connection with the issuance and sale thereof. Any moneys of the corporation, including proceeds from the sale of any bonds or notes, and revenues, receipts, and income from any of its projects, may be invested and reinvested in such obligations, securities and other investments as shall be provided in the resolution or resolutions under which the bonds or notes are authorized.

(b) Issuance by the corporation of one or more series of bonds or notes for one or more purposes shall not preclude it from issuing other bonds or notes in connection with the project or any other projects, but the proceedings whereunder any subsequent bonds or notes may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds or notes unless in the proceedings authorizing prior issue the right is reserved to issue subsequent bonds or notes on a parity with prior issue.

(c) The corporation is authorized to provide for the issuance of its bonds or notes for the purpose of refunding any bonds or notes of the corporation then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of the bonds or notes, and, if deemed advisable by the corporation, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any portion thereof.

(d) The proceeds of any bonds or notes issued for the purpose of refunding outstanding bonds or notes may, in the discretion of the corporation, be applied to the purchase or retirement at maturity or redemption of the outstanding bonds or notes either on their earliest or any subsequent redemption date, and may, pending the application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on such date as may be determined by the corporation.

(e) Any such escrowed proceeds, pending such use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificate of deposit or time deposits secured by direct obligations of or guaranteed by the United States of America, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest and redemption premium, if any, on the outstanding bonds or notes to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the corporation for use by it in any lawful manner. The portion of the proceeds of any bonds or notes issued for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by direct obligations of or guaranteed by the United States of America, maturing not later than the time or times when the proceeds will be needed for the purpose of paying all or any part of the cost. The interest, income and profits, if any, earned or realized on the investments may be applied to the payment of all or any part of the cost or may be used by the corporation in any lawful manner.

(f) All the bonds or notes shall be issued and secured and shall be subject to the provisions of this chapter in the same manner and to the same extent as any other bonds and notes issued pursuant to this chapter. All bonds and notes authorized under this section and the interest coupons, if any, applicable thereto are hereby made and shall be construed to be negotiable instruments.

(g) Money borrowed by the corporation for the purpose of providing temporary financing of a project pending the issuance of bonds or other notes shall be evidenced by notes or other obligations. The principal of and interest on all notes or other obligations of the corporation so issued under the provisions of this section shall be payable from the following:

(i) From the proceeds of bonds subsequently issued; or.

(ii) From the proceeds of subsequent borrowings which comply with the provisions hereof.

(h) Notwithstanding any other provisions of this chapter, all such notes shall be deemed to be negotiable instruments under the laws of the state subject only to the provisions for registration contained therein. These notes or other obligations or any issue thereof shall be in a form and contain such other provisions as the corporation may determine and such votes or resolutions or proceedings authorizing such notes or other obligations or any issue thereof may contain, in addition to any provisions, conditions, covenants, or limitations authorized by this chapter, any provisions, conditions, convenants, or limitations which the corporation is authorized to include in any resolution or resolutions authorizing bonds or notes or in any trust indenture relating thereto. The corporation may issue notes or other obligations in such manner either publicly or privately on such terms as it may determine to be in its best interests. These notes or other obligations may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, body, or agency of the state, without any other proceedings or the happening of any conditions or things other than those proceedings, conditions or things which are specifically required by this chapter and by the provisions and resolutions authorizing the issuance of the notes or obligations.

SECTION 2. Thie article shall take effect upon passage.

SECTION 1. Section 40-8.3-2 and 40-8.3-3 of the general laws in chapter 40-8.3 entitled "Uncompensated Care" are hereby amended to read as follows:

40-8.3-2. Definitions. -- As used in this chapter:

(1) "Base year" means October 1, {DEL 1992 DEL} {ADD 1994 ADD} through September 30, {DEL 1993 DEL} {ADD 1995 ADD} .

(2) "Medical assistance inpatient utilization rate for a hospital" means a fraction (expressed as a percentage) the numerator of which is the hospital's number of inpatient days during the base year attributable to patients who were eligible for medical assistance during the base year and the denominator of which is the total number of the hospital's inpatient days in the base year.

(3) "Participating hospital" means any non-government and non-psychiatric hospital that: (1) was licensed in accordance with chapter 23-17 of the general laws during the base year, (2) achieved a medical assistance inpatient utilization rate of at least one percent (1%) during the base year, and (3) continues to be licensed in accordance with chapter 23-17 of the general laws during the payment year.

(4) "Uncompensated care costs" means, as to any hospital, the sum of (1) the cost incurred by such hospital during the base year for inpatient or outpatient services attributable to charity care (free care and bad debts) for which the patient has no health insurance or other third-party coverage less payments, if any, received directly from such patients and (2) the cost incurred by such hospital during the base year for inpatient or out-patient services attributable to medicaid beneficiaries less any medicaid reimbursement received therefor; multiplied by the uncompensated care index.

(5) "Uncompensated care index" means {DEL five and six hundred fifty five thousandths percent (5.655%), DEL} {ADD the annual percentage increase for hospitals established pursuant to section 27-19-14 for each year ADD} {DEL multiplied by the number of years DEL} after the base year, up to and including the payment year.

40-8.3-3. Implementation. -- For the fiscal year commencing on October 1, {DEL 1996 DEL} {ADD 1997 ADD} , and ending September 30, {DEL 1997, DEL} {ADD 1998, ADD} each participating hospital shall be paid by the Department of Human Services on or before {DEL June 15, 1997, DEL} {ADD October 30, 1997, ADD} an annual disproportionate share payment equal to the lesser of (1) the hospital's uncompensated care costs or (2) a percentage equal to a minimum of two and {DEL seven DEL} {ADD four ADD} - tenths percent {DEL (2.7%) DEL} {ADD (2.4%) ADD} of the dollar amount of all chargeable services in the hospital's base year adjusted by the uncompensated care index.

SECTION 2. This article shall take effect July 1, 1997.

SECTION 1. Hardship Contingency Fund - Out of the sum appropriated to the department of human services in Article 1 for general public assistance, the sum of three hundred fifty thousand dollars ($350,000) shall be used as a hardship contingency fund for the purposes and subject to the limitations hereinafter provided, and the state controller is hereby authorized and directed to draw his or her order upon the general treasurer for the payment of such sums or such portions thereof as may be required from time to time upon receipt by him or her of duly authenticated vouchers. From the aforesaid appropriation for hardship contingency, the director of the department of human services, in his or her sole discretion, may authorize payments of cash assistance benefits up to the standards of assistance established pursuant to section 40-6-3.3 of the general laws, upon a showing of hardship by an individual who is eligible for general public assistance medical benefits under section 40-6-3.1(a)(1). The director shall not be required to promulgate any new, additional or separate rules or regulations in connection with his or her disbursement of the contingency fund created hereby.

SECTION 2. This article shall take effect July 1, 1997.

SECTION 1. Section 3 of Article 75 of chapter 133 of the 1992 Public Laws entitled "An Act Making Appropriations For The Support of the State of Rhode Island For The Fiscal Year Ending June 30, 1993" as further amended by Section 1 of Article 25 of Chapter 370 of the 1995 Public Laws entitled "An Act Making Appropriations For The Support of the State For The Fiscal Year Ending June 30, 1996" is hereby repealed in its entirety.

SECTION 2. Section 44-51-3 of the General Laws in Chapter 44-51 entitled "Nursing Facility Provider Assessment Act" is hereby amended to read as follows:

44-51-3. Imposition of assessment -- Nursing facilities. (Contingent repeal -- See notes following section 44-51-1.) -- (a) For purposes of this section, a nursing facility shall mean a person or governmental unit duly licensed in accordance with chapter 23-17 of the general laws to establish, maintain, and operate a nursing facility.

(b) An assessment is hereby imposed upon the gross patient revenue received by every nursing facility in each month beginning October 1, 1995 at a rate of three and three-quarters percent (3.75%) for services provided on or after October 1, 1995. Every provider shall pay the monthly assessment no later than the twenty-fifth (25th) day of each month following the month of receipt of gross patient revenue.

{ADD (c) The assessment imposed by this section shall be repealed on the effective date of the repeal or a restricted amendment of those provisions of the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1991 (Public Law 102-234) that permit federal financial participation to match state funds generated by taxes. ADD}

SECTION 3. This article shall take effect upon passage.

SECTION 1. Section 46-15.3-5 of the General Laws in Chapter 46-15.3 entitled "Public Drinking Water Protection" is hereby amended to read as follows:

46-15.3-5. Water quality protection charge. -- (a) There is hereby imposed on each supplier of water, for the purpose of protecting the quality and safety of the public supply of water, a charge to be known as a "water quality protection charge" based upon billings for sales of every supplier of public drinking water at the rate of two and fifty-nine hundredth cents ($.0259) per one hundred (100) gallons of each sale, whether the water be used for drinking or other purposes. No supplier shall impose a water quality protection charge upon sales to other suppliers of drinking water. Except as provided in subsections (c), (d) and (e) hereof, the supplier shall add any water quality protection charge imposed hereunder to the sale price, and when added, the water quality protection charge shall constitute a part of the price and shall also be a debt from the purchaser to the supplier and be collectible in the same manner and have the benefit of any lien provided for the amounts due for water charges from the purchaser to the supplier. {ADD Provided, however, the water quality protection charge shall not be subject to the sales and use tax. ADD} Subject to the provisions of section 39-1.1-1 for those suppliers which are public utilities, all suppliers may terminate service for failure of purchasers to pay the water quality protection charge.

(b) Any water quality protection charge imposed hereunder shall not take effect earlier than January 1, 1989; provided, however, the increase in water quality protection charge by one and one-third cents ($0.01333) established by P.L. 1990 Ch. 65, Art. 39, S.1 shall take effect and be chargeable on all billings for water sales made by a supplier on and after July 1, 1991.

(c) Each supplier shall provide for the exemption from the water quality protection charge, for any sale to a purchaser sixty-five (65) years of age and over purchasing water for the personal consumption of that person and other members of the person's household under reasonable rules and regulations.

(d) All commercial agricultural producers, including those who provide food and fiber, shall be exempt for that amount of water used to irrigate commercial crops either in fields or greenhouses, provided, that the producers have a conservation plan on file with their respective soil conservation districts.

(e) No water quality protection charge shall be imposed on that portion of such supplier's retail billing representing potable water furnished to customers by purchase of water in its finished, potable form from sources outside the state. The water quality protection charge imposed by a supplier purchasing potable water from outside the state shall be pro rata imposed on such supplier's retail billings for that portion of potable water supplied from within the state in accordance with rules and regulations to be finally promulgated by the water resources board on or before September 1, 1992.

(f) If any supplier of water fails to pay the water quality protection charge imposed upon it, upon determination by the water resources board of failure to pay and the amount unpaid, there shall be withheld from any state aid or grants of any nature due such supplier an equivalent amount and such monies shall be transferred to the appropriate water quality protection fund created under section 46-15.3-10.

SECTION 2. This article shall take effect upon passage.

SECTION 1. There is hereby created a Program to be known as the Boards for Design Professionals, hereafter referred to as the "Program".

(a) The Program shall consist of the board of registration for professional engineers, board of registration for professional land surveyors, board of examination and registration of architects, and board of examiners of landscape architects.

(b) The purpose of the Program is to combine the resources of the four (4) boards within the Program in a cooperative venture to provide for more efficient operations.

(c) The boards shall retain their respective statutory authority pursuant to sections 5-1-5, 5-51-2, 5-8-8, and 5-8.1-4 of the general laws and any other applicable legal authority, notwithstanding their inclusion in the Program created by this article.

SECTION 2. Sections 5-1-2, 5-1-5, 5-1-7, 5-1-8, 5-1-9, 5-1-10, 5-1-11, 5-1-12, 5-1-13 and 5-1-14 of the General Laws in Chapter 5-1 entitled "ARCHITECTS" are hereby amended to read as follows:

5-1-2. Definitions. -- The following definitions shall apply in the interpretation of the provisions of this chapter, unless the context requires another meaning:

(a) "Architect" means {DEL a person who, by reason of his or her knowledge of the mathematical and physical sciences, and the principles of architecture and architectural design, acquired by professional education, practical experience, or both, is qualified to engage in the practice of architecture as attested by his or her licensing as an architect in this state. DEL} {ADD any person who engages in the practice of architecture as that term is defined herein as attested by his or her licensing as an architect in this state. ADD}

(b) "Board" means the board of examination and registration of architects established by this chapter.

(c) "Certificate" means the certificate of registration issued annually by the board, indicating that the individual named therein is an architect.

(d) "Practice of architecture" means rendering or offering to render {DEL any of those services normally provided by practicing architects..

The services normally provided may include any of the following practices or professional services: advice, consultation, evaluation, site planning, aesthetic design, structural design, and the administration of construction contracts which require expert knowledge and skill in connection with the erection, enlargement, or alteration of any building or buildings, or the provision of equipment or utilities therefore, or accessories thereto, wherein the safeguarding of life, health, or property is concerned or involved also constitutes the practice of architecture. DEL} {ADD those services, described as follows:

(e) "Certificate of Authorization" means the certificate of authorization issued by the board, indicating the corporation, partnership, limited liability company or sole proprietorship named therein is permitted to practice architecture in the state. ADD}

5-1-5. {DEL Board -- Rules and regulations -- Examination and licensing powers. -- DEL} {ADD Board - Rules and regulations - Examination and registration powers. -- ADD} (a) The board may establish such rules and regulations for the conduct of its own proceedings as it deems appropriate.

(b) The board may establish suitable rules and regulations for the examination and {DEL licensing DEL} {ADD registration ADD} of architects and also governing the practice of the profession of architecture. This shall not include any prohibition of employment of the registered architect as he or she chooses.

(c) The board shall hold examinations for individuals applying for certificates at least once each year, provided that there are applicants qualified under sections 5-1-8(a) and 5-1-8(b). The board shall establish such rules and regulations for the examination of applicants as it deems appropriate.

(d) The board shall issue certificates to individuals who have qualified to practice architecture under the provisions of this chapter. The board may establish such rules and regulations for the issuance and renewal of certificates as it deems appropriate, including rules for the issuance of certificates by reciprocity.

{DEL (e) The board shall have the power to suspend, revoke, or annul certificates in accordance with the provisions of this chapter. In all disciplinary proceedings brought pursuant to this chapter, the board shall have the power to administer oaths, to summon witnesses, and to compel the production of documents in accordance with procedures applicable in the superior court. Upon failure of any person to appear or produce documents in accordance with the board's order, the board may apply to a court of any jurisdiction to enforce compliance. DEL}

{ADD In addition to its rulemaking authority, the board shall have the power to take all action that is necessary and proper to effectuate the purposes of this chapter, including the power:

(f) The board and its members and agents shall be immune from personal liability for actions taken in good faith in the discharge of the board's responsibilities, and the state of Rhode Island shall indemnify the board and such members and agents for, and shall hold them harmless from any and all costs, damages, and reasonable attorneys fees arising from or related in any way to claims or actions against them with respect to matters to which such immunity applies. ADD}

5-1-7. {DEL Unauthorized practice prohibited -- Criminal penalties -- injunctions. -- DEL} {ADD Practice prohibited - Criminal penalties - Injunctions. -- ADD} (a) Except as provided in section 5-1-9 {ADD and 5-1-14 ADD} , no individual shall practice or offer to practice architecture in this state or use any title, sign, card, or device implying that that individual is an architect or is competent to practice architecture, unless that individual holds a currently valid certificate issued pursuant to this chapter.

(b) Except as provided in section 5-1-9, {ADD 5-1-13, and 5-1-15, ADD} no {ADD sole proprietorship, ADD} partnership{ADD , ADD} {DEL or DEL} corporation{ADD , or limited liability company ADD} shall practice or offer to practice architecture in this state or use any title, sign, card, or device implying that the {ADD sole proprietorship, ADD} partnership{ADD , ADD} {DEL or DEL} corporation{ADD , or limited liability company ADD} is competent to practice architecture unless that {ADD sole proprietorship, ADD} partnership{ADD , ADD} {DEL or DEL} corporation{ADD , or limited liability company ADD} complies with the requirements of this chapter. {DEL A partnership or corporation shall be admitted to practice architecture in this state if: (1) two-thirds (2/3) of the partners (if a partnership) or two-thirds (2/3) of the directors (if a corporation) are registered under the laws of any state to practice architecture or engineering; (2) one-third (1/3) of the partners (if a partnership) or one-third (1/3) of the directors (if a corporation) are registered under the laws of any state to practice architecture; and (3) the person having the practice of architecture in his or her charge is himself or herself a partner (if a partnership) or a director (if a corporation) and registered to practice architecture in this state. The board is empowered to require any partnership or corporation practicing architecture in this state to file information concerning its officers, directors, beneficial owners and other aspects of its business organization, upon such forms as the board prescribes. This section shall not be construed to prevent any person, partnership, corporation, or association in the business of building construction and/or construction management from offering to render design and construction services in connection with building construction or construction management executed by that firm provided that services which constitute the practice of architecture, as defined in section 5-1-2(d), shall be performed by one or more registered architects. DEL}

(c) Any individual, {ADD sole proprietorship, ADD} partnership, {DEL or DEL} corporation{ADD , or limited liability company ADD} which violates subsection (a) or (b) {ADD of this section ADD} shall be guilty of a misdemeanor, and upon conviction by a court of competent jurisdiction shall be sentenced to pay a fine of not more than five hundred dollars ($500) for the first offense, and a fine of not less than {DEL five hundred dollars ($500), DEL} {ADD one thousand dollars ($1,000) ADD} nor more than one thousand dollars ($1,000) for each subsequent offense or imprisonment for not more than one year or both.

(d) The board shall have the power to institute injunction proceedings in superior court to prevent violations of subsection (a) or (b) of this section or violations of section 5-1-12. In injunction proceedings, the board shall not be required to prove that an adequate remedy at law does not exist, or that substantial or irreparable damage would result from continued violations.

5-1-8. {DEL Examination and qualifications of applicants. -- DEL} {ADD Examination and qualifications of applicants for certificates of registration. -- ADD} (a) Any individual who is at least twenty-one (21) years of age and a resident of Rhode Island may apply for a certificate {ADD of registration ADD} under this chapter; provided that the board may waive the requirement of residency in Rhode Island in any case or category of cases where the board determines that the applicant is not seeking to avoid the registration requirements of his or her state or country of residence.

(b) Each applicant for a certificate {ADD of registration ADD} shall submit evidence satisfactory to the board that he or she holds a professional degree in architecture from an accredited school and has had such practical experience including academic training, as the board, by regulations uniformly applied, shall deem appropriate. The board may, in its discretion, adopt as its standards for minimum experience the guidelines on practical experience of the National Council of Architectural Registration Boards.

(c) Each applicant for {ADD a certificate of ADD} registration who satisfies subsections (a) and (b) of this section shall submit to a registration examination. The examination shall cover such technical and professional subjects and shall be graded on such basis as the board shall by regulation prescribe. Results of the examination shall be announced within ninety (90) days of the date on which the examination commenced. The board may in its discretion, adopt the examinations and recommended grading procedures of the National Council of Architectural Registration Boards.

(d) The board may require applicants under this section and under section 5-1-9 to submit to a personal interview.

5-1-9. Interstate practice. -- A non-resident licensed architect seeking to practice architecture in the state {ADD of Rhode Island ADD} shall, upon application, obtain a certificate {ADD of registration ADD} by submitting evidence satisfactory to the board that he or she is registered to practice architecture in another state, and further that he or she has fulfilled the requirements for National Council of Architectural Registration Board's certification, and further that he or she meets the requirements set forth in section 5-1-8 herein. The board shall act upon the application for a certificate {ADD of registration ADD} within {DEL thirty (30) DEL} {ADD forty-five (45) ADD} days of submission of evidence that the applicant is registered as aforesaid.

5-1-10. Issuance and renewal of certificates. -- (a) Upon payment of the fees required by section 5-1-11, an individual who has complied with section 5-1-8 or 5-1-9 shall be entitled to a certificate {ADD of registration ADD} indicating that he or she is qualified to practice architecture in this state. Each certificate {ADD of registration ADD} shall contain the name of the individual to whom it was issued and his or her date of birth.

(b) Every certificate {ADD of registration ADD} shall expire on the last day of December following its issuance. An architect may renew his or her certificate {ADD of registration ADD} by paying the renewal fee required by section 5-1-11. An architect who fails to renew his or her certificate {ADD of registration ADD} prior to December 31 may not thereafter renew his or her certificate {ADD of registration ADD} except upon payment of the renewal fee and the additional fee required by section 5-1-11.

(c) A duplicate certificate {ADD of registration ADD} to replace one which has been lost, destroyed, or mutilated may be issued by the board upon payment of the fee required by section 5-1-11.

5-1-11. Fees -- Payment and disposition. -- (a) The fees paid by an applicant for filing an application for examination, for the examination, for re-examination, for registration pursuant to section 5-1-9, for {DEL bi DEL} annual renewal, for renewal of an expired certificate, or for issuance of a duplicate certificate {ADD of registration ADD} shall be in accordance with section 12 entitled "Fees", of the by-laws of the board {DEL . DEL} {ADD , as amended. ADD}

(b) All fees or other monies collected under the provisions of this chapter shall be deposited as general revenues. The controller is authorized and directed to draw his or her orders upon the general treasurer for payment from the fund, upon receipt by the controller of vouchers authenticated by the chairperson or secretary of the board.

{ADD (c) The fees paid by an applicant for a certificate of authorization pursuant to this section for annual renewal, for renewal of an expired certificate of authorization, or for issuance of a duplicate certificate of authorization, shall be in accordance with section 12 of the bylaws of the board, as amended, entitled "Fees". ADD}

5-1-12. Architect's stamp. -- (a) Every architect shall obtain a stamp {ADD designated and ADD} approved by the board, and shall impress that stamp on drawings and specifications prepared by him or her or under his or her personal supervision for use in this state. An architect who impresses his or her stamp, or knowingly permits it to be impressed on drawings or specifications which were not prepared by him or her or under his or her personal supervision shall be guilty of a misdemeanor and shall be subject to the penalties provided in section 5-1-7(c). Any person who impresses an architect's stamp, or knowingly permits it to be impressed on drawings and specifications after the architect's certificate {ADD of registration ADD} has expired, or has been revoked, annulled, or suspended, shall be guilty of a misdemeanor and shall be subject to the penalties provided in section 5-1-7(c).

(b) Upon forfeiture, revocation, suspension, annulment of his or her certificate {ADD of registration ADD} , or upon expiration of his or her certificate {ADD of registration ADD} without renewal, an architect shall surrender his or her stamp to the board. Upon the death of an architect, his or her personal representatives shall surrender his or her stamp to the board. The board shall have the power to institute proceedings in superior court or probate court to enforce this subsection.

5-1-13. {DEL Disciplinary proceedings. -- DEL} {ADD Revocation or suspension of certificates of registration or of authorization. -- ADD} {DEL (a) The board may refuse to issue a certificate, or may revoke or annul a certificate, or may suspend a certificate for a period not to exceed one year, or may publicly censure an architect for any of the following acts: DEL}

{ADD After notice and hearing as provided in section 5-1-13.1, the board may (a) suspend for a period not exceeding two (2) years, or revoke any certificate of registration; (b) revoke or suspend any certificate of authorization issued under the provisions of section 5-1-10; and (c) publicly censure, or reprimand or censure in writing, limit the scope of practice of, impose an administrative fine upon (not to exceed one thousand dollars ($1,000) for each violation), or place on probation, all with or without terms, conditions or limitations, holders of a certificate of registration or a certificate of authorization, (hereafter referred to as licensee(s)), for any or more of the following causes: ADD}

(1) Bribery, fraud or misrepresentation in obtaining a certificate {DEL ; DEL} {ADD of registration or certificate of authorization; ADD}

(2) Practicing architecture in another state or country in violation of the laws of that state or country;

(3) Practicing architecture in this state in violation of the standards of professional conduct established by the board;

(4) Fraud, deceit, recklessness, gross negligence, or incompetence in the practice of architecture;

(5) Use of an architect's stamp in violation of section 5-1-12 {DEL . DEL} {ADD ; ADD}

{ADD (6) Violation of any of the provisions of this chapter;

(11) Any other conduct discreditable to the architectural profession. ADD}

{DEL (b) Any person may prefer charges against an applicant or architect under subsection (a) by submitting a written statement of charges, sworn to by the complainant, with the secretary of the board. In addition, the board may, on its own motion, investigate the conduct of an applicant or architect, and shall, in appropriate cases, file a written statement of charges with the secretary. The board shall hear and determine all charges within three (3) months after the date on which the statement of charges was received by the secretary. The time and place of the hearing shall be fixed by the board. The applicant or architect charged shall be entitled to be represented by counsel. Hearing shall be conducted in accordance with the provisions for hearings of contested cases in chapter 35 of title 42. Any member of the board may administer oaths and conduct examinations. If, after hearing, three (3) or more members of the board shall find the accused applicant or architect guilty of the charges, or any of them, it may refuse to issue a certificate to the accused applicant, or it may revoke or suspend the certificate of the accused architect, or may publicly censure the accused architect.

(d) The attorney general or his or her deputy shall act as legal advisor to the board and shall render such legal assistance as may be necessary in carrying out the provisions of this chapter. The board may employ counsel and other necessary assistance to be appointed by the governor to aid in the enforcement of this chapter, and the compensation and expenses therefor shall be paid from the fund of the board. DEL}

5-1-14. Practices permitted. -- Nothing contained in this chapter shall be construed to prohibit practices normally permitted to employees, engineers, contractors, and others, including the following:

(1) A draftsman, student, superintendent, or other employee of a lawfully practicing registered architect acting under the instruction, control and supervision of his or her employer. This chapter shall not prevent the employment of a superintendent of the construction, enlargement, or alteration of a building or part thereof who acts under the immediate personal supervision of the registered architect by whom the plans and specifications of any such building, enlargement, or alteration were prepared.

(2) A registered professional engineer doing architectural work as may be incident to the practice of his or her engineering profession, {ADD not to exceed thirty-five thousand cubic feet of enclosed space, ADD} provided all drawings for that construction are signed by the author thereof with his or her true appellation as a "registered professional engineer" without the use in any form of the title "architect".

(3) {DEL The supervision of construction or drawing of plans or specifications for the erection, enlargement, or alteration of a building or any part thereof by a person other than a registered architect, provided that the building is constructed for himself or herself as a private owner-occupied structure, and the construction complies with all relevant building code requirements.

(4) DEL} The construction or alteration of any single-family or two-family house or any minor accessory building thereto by a person other than a registered architect.

{DEL (5) DEL} {ADD (4) ADD} The construction or alteration of any building used for farm purposes, {ADD so long as it is not for human habitation or occupancy, ADD} {DEL not to exceed 5000 square feet, DEL} by a person other than a registered architect.

SECTION 3. Chapter 5-1 of the General Laws entitled "Architects" is hereby amended by adding thereto the following sections:

{ADD 5-1-13.1. Initiation of proceedings -- Hearings before the board -- Appeals -- Notice to other states. -- ADD} {ADD (a) The board may initiate proceedings under this chapter against holders of a certificate of registration and/or a certificate of authorization (hereafter referred to as licensee(s)) either on its own motion, or on complaint of any person, upon a finding of probable cause by a probable cause committee appointed by the board pursuant to section 5-1-5 of the general laws, or upon receiving notification from another state board of architects or from the appropriate authority in another country/jurisdiction of its decision to (1) revoke, suspend, or refuse to renew the practice privileges granted in that state or in that country/jurisdiction to the licensee, or (2) publicly censure, or censure in writing, limit the scope of practice of, impose an administrative fine upon, or place on probation such licensee.

(m) The attorney general or his or her deputy shall act as legal advisor to the board and shall render such legal assistance as may be necessary in carrying out the provisions of this chapter. The board may employ other counsel and obtain other necessary assistance to be appointed by the governor to aid in the enforcement of this chapter, and the compensation and expenses therefor shall be paid from the fund of the board. ADD}

{ADD 5-1-15.1. Certificate of authorization for sole proprietorships, partnerships, corporations, and limited liability companies. -- ADD} {ADD (a) A partnership, corporation, or limited liability company shall be admitted to practice architecture in this state if (1) two-thirds (2/3) of the partners (if a partnership) or two-thirds (2/3) of the directors (if a corporation) are or two-thirds (2/3) of the managers (if a limited liability company) registered under the laws of any state or any reciprocal jurisdiction as defined by the National Council of Architectural Registration Boards to practice architecture or engineering; (2) one-third (1/3) of the partners (if a partnership) or one-third (1/3) of the directors (if a corporation), or one-third (1/3) of the managers (if a limited liability company) are registered under the laws of any state or reciprocal jurisdiction as defined by the National Council of Architectural Registration Boards to practice architecture; and (3) the person having the practice of architecture in his or her charge is himself or herself a partner (if a partnership) or a director (if a corporation) or a manager (if a limited liability company) and registered to practice architecture in this state.

(1) Every firm must renew its certificate of authorization annually. A separate form provided by the board is to be filed with each renewal of the certificate of authorization. The firm shall complete a renewal form within thirty (30) days of the time any information previously filed with the board has changed, is no longer true or valid, or has been revised for any reason. If, in its judgment, the information contained on the application and/or renewal form is satisfactory and complete, the board will issue a certificate of authorization for the firm to practice architecture in this state. ADD}

SECTION 4. Sections 5-51-1, 5-51-6, 5-51-9, 5-51-10, 5-51-11, 5-51-13 and 5-51-14 of the General Laws entitled "Rhode Island State Board of Examiners of Landscape Architects" are hereby amended to read as follows:

5-51-1. Definitions. -- As used in this chapter, the following definitions of words and terms shall apply:

(1) "Board" means the Rhode Island state board of examiners of landscape architects.

(2) "Landscape architect" means a person who engages or offers to engage in the practice of landscape architecture.

(3) "Landscape architecture" means {DEL the performance of professional services such as consultation, investigation, research, planning, design, preparation of drawings and specifications and responsible supervision in connection with the development of sites where, and to the extent that the dominant purpose of those services is the preservation, enhancement or determination of proper uses, site planning, natural land features, planting, naturalistic and aesthetic values, the settings and approaches to structures or other improvements, and determining drainage and providing for storm drainage systems where those systems do not require the hydraulic design or structural design of system component and are restricted to the use where relevant of any standards as may be prescribed by local or state authorities, and determination of environmental problems of land including erosion, blight, and other hazards. Landscape architecture shall include the design of such tangible objects and features as are incidental and necessary to the purposes outlined herein and as may be prescribed by local or state authorities, but shall not include the design of structures or facilities with separate and self-contained purposes such as are ordinarily included in the practice of engineering or architecture; and shall not include the making of land surveys or final plats for official approval or recordation. A duly licensed landscape architect may perform any of the services described in the first sentence of this subdivision in connection with the settings, approaches or environment for buildings, structures, or facilities. A landscape architect is not authorized to engage in the practice of architecture, or the practice of engineering or land surveying unless so licensed by the applicable board. DEL} {ADD planning and designing the use, allocation, and arrangement of land and water resources, through the creative application of biological, physical, mathematical, and social processes. Insofar as these services involve safeguarding life, health or property, and include such other professional services as may be necessary to the planning, progress, and completion of any landscape architectural services, such services may include but not be limited to the following:

(h) feasibility studies, cost estimates and reports for development. ADD}

5-51-6. Examinations. -- (a) Before being examined for registration as a landscape architect, each applicant shall submit evidence to the board that:

(1) He or she is at least twenty-one (21) years of age and of good moral character;

(2) He or she is a citizen or legal resident of the United States ;

(3) He or she has completed the course of study and {DEL been DEL} {ADD has ADD} graduated from a college or school of landscape architecture approved by the board. In lieu of graduation from an approved college or school of landscape architecture, an applicant may take the examination upon presenting evidence of at least six (6) years of practical experience in landscape architectural work of a grade and character satisfactory to the board. Credit may be given for approved college education at the discretion of the board.

(4) He or she has had {ADD a minimum of ADD} two (2) {DEL or more DEL} years' experience in landscape architectural work under the direct supervision of a registered landscape architect and of a grade and character {DEL which indicates DEL} {ADD satisfactory ADD} to the board{ADD . ADD} {DEL that the applicant may be competent to practice landscape architecture. DEL}

(b) The scope of the examinations will be established by the board, and the examinations shall be designed to determine the qualifications of the applicant to practice landscape architecture. The examination shall cover such technical, professional, and practical subjects as relate to the practice of the profession of landscape architecture. The examinations shall also cover the basic arts and sciences, a knowledge of which is material and necessary to the proper understanding, application, and qualification for practice of the profession of landscape architecture. (The board may use the council of landscape architects registration boards uniform national examination in lieu of preparing a special test for its own use.)

(c) The board may establish or change the written examination and include an oral examination as a supplement to the written examination. The board may also determine the eligibility of the applicant before permitting admittance to the examination.

(d) The subjects included in the examination shall be determined by the board and may be combined, revised, or eliminated. The time allotted for the examination may be altered at the discretion of the board.

(e) The written examination will be given at least once in each calendar year. The date, time, and place of the examination shall be determined by the board.

(f) The examination shall be conducted in accordance with the instructions issued by the board. A copy of these instructions shall be furnished to each applicant after the applicant has been certified by the board as eligible for admittance to the examination and the date of the examination has been established by the board.

5-51-9. Annual renewal of licenses. -- (a)(1) A license to practice landscape architecture in the state {ADD of Rhode Island ADD} shall remain in force for the fiscal year in which said license was issued.

(2) All licenses {ADD and certificates of authorization ADD} shall expire on June 30 and shall be renewed annually. {ADD The certificates of authorization are issued by the board, indicating the corporation, partnership, limited liability company or sole proprietorship named therein is permitted to practice landscape architecture in this state. ADD} A license {ADD or certificate of authorization ADD} will not be renewed until the {DEL license DEL} renewal fee {DEL of forty dollars ($40.00) per year DEL} is received by the board and the same shall be effective as of June 30, 1981.

(3) Licenses {ADD and certificates of authorization ADD} not renewed by the payment of the annual license renewal fee prior to June 30, shall be construed to be expired, and {DEL the landscape architect must apply DEL} {ADD shall require an application ADD} for reinstatement.

(4) Failure to reinstate a license {ADD or certificate of authorization ADD} by October 1 will result in the {DEL removal of the individual from the roll of licensed landscape architects and the DEL} cancellation of the license {DEL . DEL} {ADD or certificate of authorization. ADD}

(b) The board may determine and establish such rules and regulations for continuing education requirements and other recertification procedures that the board deems necessary.

(c) The board may require all applicants for renewal {DEL of licenses DEL} to provide the board with registration information as the board deems necessary.

5-51-10. Restoration of an expired license. -- (a) Application for the restoration of an expired license, which has been allowed to lapse for more than one year, shall be accompanied by a brief outline setting forth the professional activities of the applicant during the lapsed period.

(b) The {DEL ten dollar ($10.00) license DEL} renewal fee {DEL for the current calendar year DEL} must accompany the application for restoration {DEL of an expired license DEL} .

5-51-11. Duplicate licenses -- Seals -- Rubber stamps. -- (a) Only one certificate of {DEL qualification DEL} {ADD registration ADD} or license shall be issued to a licensed landscape architect. A duplicate certificate may be issued by the board should the original certificate be lost or damaged. Applications for a duplicate certificate will be submitted to the board office. {DEL A payment of ten dollars ($10.00) DEL} {ADD The required fee ADD} must be submitted with the application for a duplicate certificate.

(b) For the purpose of signing all final drawings, plans, specifications, reports, and other contract documents, each licensed landscape architect shall obtain an individual seal, and a rubber stamp (a facsimile of the seal) to be used on documents prepared by him or her or under his or her supervision. Firms consisting of more than one licensed landscape architect may use a single seal identifying a principal corporate officer or partner as being personally responsible for the professional services provided. The board shall furnish a copy of the authorized seal from which the applicant can have a seal and stamp made.

(c) The application of the seal impression, to the first sheet of bound sets of drawings (with index of drawings included), title page of specifications, and to other drawings and contract documents shall constitute the registered landscape architect stamp.

(d) The rubber stamp may be applied on all tracings to produce legible reproduction on all copies or prints made from the tracings. This provision does not in any manner modify the above requirements.

{DEL 5-51-13. Corporations and partnerships. -- DEL} {ADD 5-51-13. Corporations, partnerships and limited liability companies. -- ADD} (a) A corporation{ADD , ADD} {DEL or DEL} partnership {ADD or limited liability company, ADD} as such, may not be licensed as registered to practice landscape architecture or to use any form of the title "landscape architect" in connection with the corporate or partnership {ADD or limited liability company ADD} name.

(b) The right to engage in the practice of landscape architecture is a personal right, based upon the qualifications of the individual evidenced by his or her license and is not transferable. No person shall practice landscape architecture, or use the title "landscape architect", or any title, sign, card, or device to indicate that such person is practicing landscape architecture, or is such an architect, unless that person shall have secured from the board of examination and registration of landscape architects a certificate of registration in the manner provided. All final drawings, specifications, plans, reports, or other papers or documents involving the practice of landscape architecture, as defined in section 5-51-1, for use in this state shall be dated, and bear the signature and seal of the landscape architect or landscape architects who prepared or personally supervised their preparation.

{DEL (c) Nothing in subsections (a) and (b) shall be construed to prevent the formation of partnerships and corporations as a vehicle for the practice of landscape architecture subject to the following conditions: the practice of or offer to practice landscape architecture for others as defined in section 5-51-1 by individual landscape architects licensed under this chapter through a corporation as officers, employees or agents, or through a partnership as partners, officers, employees, or agents, or the offering or rendering of landscape architectural services by a corporation or partnership through individual landscape architects licensed under this chapter is permitted, subject to the provisions of this chapter; provided that: (1) one or more of the corporate officers in the case of a corporation, or one or more of the partners in the case of a partnership, is designated as being responsible for the professional services described in section 5-51-1 of the corporation or partnership and is a landscape architect under this chapter; (2) all personnel of the corporation or partnership, who act in its behalf as landscape architects, are licensed under this chapter. DEL}

{ADD (c) The practice or offer to practice landscape architecture as defined by this chapter by a corporation, partnership, limited liability company or sole proprietorship, hereinafter referred to as the "firm", through individuals is permitted provided that said individuals: are in direct control of such practice; exercise personal supervision of all personnel who act on behalf of the firm in professional and technical matters; and are registered under the provisions of this chapter, and provided further that said firm has been issued a certificate of authorization by the board of examiners of landscape architects.

(2) No firm that has been granted a certificate of authorization by the board shall be relieved of responsibility of modification or derivation thereof, unless the board has issued for said applicant a certificate of authorization or a letter indicating the eligibility of such applicant to receive such a certificate. The firm applying shall supply such certificate or letter from the board with its application for incorporation or registration as a foreign corporation. ADD}

5-51-14. Fees. -- The following is the schedule of fees to be charged by the board:

(1) The fees to be paid by an applicant for examination or re-examination to determine his or her fitness to receive a certificate of registration shall be determined by the board so as to cover expenses associated with administering and evaluating the examination or re-examination.

(2) The fee to be paid for the restoration of an expired certificate of registration shall {DEL be forty dollars ($40.00) DEL} {ADD not exceed one hundred twenty-five dollars ($125) ADD} for every year or portion of a year the applicant has been delinquent plus a penalty of twenty-five dollars ($25.00).

(3) The fee to be paid upon the renewal of a certificate of registration shall {DEL be forty dollars ($40.00) DEL} {ADD not exceed one hundred twenty-five dollars ($125.00) ADD} .

(4) The fee to be paid by an applicant for certificate of registration who is a landscape architect registered or licensed under the laws of another state under section 5-51-7, shall not exceed one hundred fifty dollars {DEL ($150) DEL} {ADD ($150.00) ADD} .

(5) The fee to be paid by an applicant for a certificate of registration who qualifies and is a resident of this state shall be thirty dollars ($30.00).

(6) The fee to be paid for a duplicate certificate shall be thirty dollars ($30.00).

(7) {DEL All fees received by the board shall be deposited as general revenues. DEL} {ADD The initial fee for a certificate of authorization shall not exceed one hundred twenty-five dollars ($125.00). ADD}

{ADD (8) The annual renewal fee for a certificate of authorization shall be fifty dollars ($50.00).

(10) All fees received by the board shall be deposited as general revenues. ADD}

SECTION 5. This article shall take effect July 1,1997.

SECTION 1. Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" is hereby amended to read as follows:

45-13-5.1. General Assembly approipriations in lieu of property tax from certain exempt private and state properties. -- (a) In lieu of the amount of local real property tax on real property owned by any private nonprofit institution of higher education or any nonprofit hospital facility or any state owned and operated hospital, veterans' residential facility or correctional facility occupied by more than one hundred (100) residents which may have been or will be exempted from taxation by applicable state law, exclusive of any such facility operated by the federal government, the state of Rhode Island or any subdivision thereof, the general assembly shall annually appropriate for payment to the several cities and towns in which the property lies a sum equal to {DEL twenty-five percent (25%) DEL} {ADD twenty-seven percent (27%) ADD} of all tax that would have been collected had the property been taxable.

(b) As used in this section "private nonprofit institution of higher education" means any such institution engaged primarily in education beyond the high school level, the property of which is exempt from property tax under any of the subdivisions and "nonprofit hospital facility" means any nonprofit hospital licensed by the state and which is used for the purpose of general medical, surgical or psychiatric care and treatment.

(c) The grant payable to any municipality under the provision of this section shall be equal to {DEL twenty-five percent (25%) DEL} {ADD twenty-seven percent (27%) ADD} of the property taxes which, except for any exemption to any institution of higher education or general hospital facility, would have been paid with respect to that exempt real property on the assessment list in the municipality for the assessment date of December 31, 1986 and with respect to such exempt real property appearing on an assessment list in the municipality on succeeding assessment dates.

(d) The state budget offices shall include the amount of the annual grant in the state budget for the fiscal year commencing July 1, 1988 and each fiscal year thereafter. The amount of the grant payable to each municipality in any year in accordance with this section shall be reduced proportionately in the event that the total of those grants in each year exceeds the amount appropriated for the purposes of this section with respect to that year.

(e) Distribution of appropriations shall be made by the state on or before July 31 of 1988 and each July 31 thereafter and the payments may be counted as a receivable by any city or town for a fiscal year ending the preceding June 30.

(f) Any act or omission by the state with respect to this chapter shall in no way diminish the duty of any town or municipality to provide public safety or other ordinary services to the properties or facilities of the type listed in subsection (a).

(g) Provided, however, that payments authorized pursuant to this section shall be reduced pro rata, for such period of time that the municipality suspends or reduces essential services to eligible facilities. For the purposes of this section "essential services" shall include, but not be limited to, police, fire and rescue.

SECTION 2. This article shall take effect July 1, 1997.

SECTION 1. Sections 37-21-2, 37-21-4 and 37-21-5 of the general laws in chapter 37-21 entitled "Minority Business Development Compliance Act" are hereby repealed in their entirety.

{DEL 37-21-2. Minority business development compliance account. -- DEL} {DEL (a) There is hereby established in the general fund of the state treasury a "minority business development compliance account" which shall maintain on deposit all moneys transferred to it under this chapter.

     
PORTION OF RECEIPT TO BE                      AMOUNT TO BE TRANSFERRED          
USED FOR CONSTRUCTION,                        MINORITY BUSINESS                 
RENOVATION, OR REHABILITATION                 DEVELOPMENT ACCOUNT               
     
With Costs of    But less than       Percent of Base "plus"                     
At least                                 percent over base                      
(Base)                                                                          
     
$1,000,000                 $10,000,000                  2.00%  +  1.0%                             
10,000,000                  50,000,000                  1.25%  +  0.5%                             
50,000,000                 100,000,000                  0.75%  +  0.4%                             
100,000,000                200,000,000                  0.60%  +  0.2%                             
200,000,000                300,000,000                  0.40%  +  0.1%                             
300,000,000                                             0.30%  +  0.0%                             

(e) For purposes of this chapter, the term "agency" means the state and any department, agency, commission, board, council, corporation, authority, or subdivision thereof that has authority to receive capital development funds for the purpose of financing construction, renovation, or rehabilitation, but excludes cities and towns and any department, agency, commission, board, council, bureau, authority, or subdivision thereof. DEL}

{DEL 37-21-4. Annual summary of account expenditures. -- DEL} {DEL The department of administration shall promulgate rules and regulations to implement the provisions of this chapter. The director of administration shall on an annual basis or within sixty (60) days following the completion of a project, file with the minority business enterprise commission a summary of all expenditures from any sub-account established with respect to such project. DEL}

{DEL 37-21-5. Receipt of capital development funds defined. -- DEL} {DEL For purposes of this chapter, the term "receipt of capital development funds" or "receipt" means the receipt by an agency of funds from any source that are designated or appropriated by the agency for construction, renovation, or rehabilitation or to make a loan to any entity (other than an agency) to the extent such loan is for the purpose of financing construction, renovation, or rehabilitation. A receipt shall be deemed to occur on the later of the date such funds are actually received by the agency or the date they are so designated or appropriated. DEL}

SECTION 2. Sections 37-21-3 of the general laws in chapter 37-21 entitled "Minority Business Development Compliance Act" are hereby amended to read as follows:

37-21-3. {DEL Use of minority business development compliance account. -- DEL} {ADD Use of minority business development compliance funding. -- ADD} (a) All sums {ADD appropriated for ADD} {DEL in the DEL} minority business development compliance account shall be used for the primary purpose of developing the monitoring and compliance functions relating to equal opportunity laws and the state's minority business enterprise programs. The {DEL account shall be used for the DEL} purpose of {ADD the program shall be to guarantee ADD} {DEL guaranteeing DEL} maximum minority business enterprise and minority workforce participation on state and federally funded construction projects, and to assure the fullest possible implementation of the state's minority business enterprise procurement program.

(b) {DEL Subject to any agency agreements described in section 37-21-2(d), DEL} {DEL funds DEL} {ADD Funds ADD} shall be used for compliance analysis, on-site monitoring, special studies, outreach to the minority business enterprise community, training and apprenticeship programs, general administration of the program, and related purposes. {DEL The funds are intended to supplement those funds regularly allocated for minority business enterprise development purposes to the departments of administration and the Rhode Island economic development corporation. DEL}

{DEL (c) The following receipts of capital development funds shall be exempt from this chapter:

(vi) Receipts to finance projects for the benefit of not-for-profit end users, provided that no state agency is the owner or operator of the project. DEL}