A N   A C T

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 1999

Introduced By: Reps. Salisbury, Watson, Long, Quick and Campbell

Date Introduced : February 12, 1998

It is enacted by the General Assembly as follows:

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, 1999. The amounts identified for federal funds and restricted receipts shall be made available pursuant to sections 42-41 and 35-4-22 of the Rhode Island General Laws. 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 or such portions thereof as may be required from time to time upon receipt by her of properly authenticated vouchers.

SECTION 2. 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 offense 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 3. 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 4. 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 5. 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 when the funds are to be released or granted.

SECTION 6. Appropriation for Temporary Disability Insurance Administration -- There is hereby appropriated pursuant to sections 28-39-5 and 28-39-8 of the Rhode Island 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, 1999.

SECTION 7. Appropriation of Unemployment Insurance and Training Funds -- There is hereby appropriated pursuant to section 28-42-19 of the Rhode Island General Laws all funds required to be disbursed for benefit payments from the Employment Security Fund for the fiscal year ending June 30, 1999.

SECTION 8. 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, 1999 payable out of the University and College Funds.

SECTION 9. Appropriation of Rhode Island Telecommunications Authority Funds -- There is hereby appropriated pursuant to section 16-61-13 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, 1999 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 10. Notwithstanding Section 313620 of the Rhode Island General Laws, the State Controller is hereby authorized to transfer from the Resource Recovery Corporation the sum of four million dollars ($4,000,000) to the state general fund, of which two million dollars ($2,000,000) shall be transferred on February 15, 1999 and two million dollars ($2,000,000) shall be transferred on May 14, 1999.

SECTION 11. 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. 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. 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 12. Each line appearing in section 1 of this Article shall constitute an appropriation.

SECTION 13. The amounts reflected in this Article include the appropriation of Delaware Plan Capital funds for fiscal year 1999 and supersede appropriations provided for FY 1999 within Section 4 of Article 5 of Chapter 30 of the P.L. of 1997.

The following amounts are hereby appropriated out of any money in the State's Delaware Plan Capital Fund not otherwise appropriated to be expended during the fiscal years ending June 30, 2000 and June 30, 2001. These amounts supersede appropriations provided within Section 4 of Article 5 of Chapter 30 of the P.L. of 1997. 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.

SECTION 14. Reappropriation of Delaware Capital Projects. - Commencing in the fiscal year ending June 30, 1998, any unexpended funds from Delaware Plan Capital Fund project appropriations shall be reappropriated in the ensuing fiscal year and made available for the same purpose.

SECTION 15. Higher Education Assistance Authority Need Based Grants and Work Opportunities 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 revenue appropriations for "Need Based Grants and Work Opportunities -- RIGL 16-56-6 and 16-56-8" contained in section 1 of this article within the Higher Education Assistance Authority, whether regular or special appropriations, at the end of fiscal year 1999 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the former applications.

SECTION 16. Section 37-2-7 of the General Laws in Chapter 37-2 entitled "State Purchases" is hereby amended to read as follows:

37-2-7. Definitions. -- The words defined in this section shall have the meanings set forth below whenever they appear in this chapter, unless the context in which they are used clearly requires a different meaning or a different definition is prescribed for a particular section, group of sections or provision.

(1) "Business" shall mean any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is conducted.

(2) "Change order" shall mean a written order signed by the purchasing agent or contractor directing or allowing the contractor to make changes which the changes clause of the contract authorizes the purchasing agent or contractor to order without the consent of the contractor or purchasing agent.

(3) "Chief purchasing officer" shall mean the director of administration, who shall be responsible for all purchases by the state and for a public agency. "Chief purchasing officer" shall mean the executive director or the chief operational officer of the agency.

(4) "Construction" shall mean the process of building, altering, repairing, improving, or demolishing any public structures or building, or other public improvements of any kind to any public real property. It does not include the routine maintenance or repair of existing structures, buildings, or real property performed by salaried employees of the state of Rhode Island in the usual course of their job.

(5) "Contract" shall mean all types of agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It shall include awards; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; purchase orders; and construction management contracts. It also includes supplemental agreements with respect to any of the foregoing. "Contract" does not include labor contracts with employees of state agencies.

(6) "Contract modification" shall mean any written alteration in the specifications, delivery point, rate of delivery, contract period, price, quantity, or other contract provisions of any existing contract, whether accomplished by unilateral action in accordance with a contract provision, or by mutual action of the parties to the contract. It shall include bilateral actions, such as supplemental agreements, and unilateral actions, such as change orders, administrative changes, notices of termination, and notices of the exercise of a contract option.

(7) "Contractor" shall mean any person having a contract with a governmental body.

(8) "Data" shall mean recorded information, regardless of form or characteristic.

(9) "Designee" shall mean a duly authorized representative of a person holding a superior position.

(10) "Employee" shall mean an individual drawing a salary from a governmental body or public agency, whether elected or not, and any nonsalaried individual performing personal services for any governmental body or public agency.

(11) "Governmental body" shall mean any department, commission, council, board, bureau, committee, institution, legislative body, agency, government corporation, including, without limitation, the board of governors for higher education except for purchases which are funded by restricted, sponsored or auxiliary monies for the period through July 1, {DEL 1998 DEL} {ADD 1999 ADD}, as provided for in subdivision (16) of this section, and board of regents -- elementary and secondary education or other establishment of the executive, legislative or judicial branch of the state.

(12) "May" shall mean permissive.

(13) "Negotiation" shall mean contracting by either the method set forth in section 37-2-19, 37-2-20, or 37-2-21 of this chapter.

(14) "Person" shall mean any business, individual, organization, or group of individuals.

(15) "Procurement" shall mean the purchasing, buying, renting, leasing, or otherwise obtaining of any supplies, services, or construction. It shall also include all functions that pertain to the obtaining of any supply, service, or construction item, including a description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

(16) "Public agency" shall mean the Rhode Island industrial recreational building authority, the Rhode Island economic development corporation, the Rhode Island industrial facilities corporation, the Rhode Island refunding bond authority, the Rhode Island housing and mortgage finance corporation, the Rhode Island resource recovery corporation, the Rhode Island public transit authority, the Rhode Island student loan authority, the Howard development corporation, the water resources board corporate, the Rhode Island health and education building corporation, the Rhode Island higher education assistance authority, the Rhode Island turnpike and bridge authority, the Blackstone Valley district commission, the Narragansett Bay water quality management district commission, Rhode Island telecommunications authority, the convention center authority, Channel 36 foundation, the board of governors for higher education for all purchases which are funded by restricted, sponsored or auxiliary monies, their successors and assigns, and any other body corporate and politic which has been or will be created or established within this state excepting cities and towns. The board of governors for higher education for all purchases which are funded by restricted, sponsored or auxiliary monies shall be included in the definition of "public agency" only through July 1, {DEL 1998 DEL} {ADD 1999 ADD}.

(17) "Purchase request" or "purchase requisition" shall mean that document whereby a using agency requests that a contract be entered into to obtain goods and/or services for a specified need, and may include, but is not limited to, the technical description of the requested item, delivery requirements, transportation mode request, criteria for evaluation of proposals, and/or preparation of suggested sources of supply, and information supplied for the making of any written determination and finding required by section 37-2-6.

(18) "Purchasing agency" shall mean any governmental body which is authorized by this chapter, its implementing regulations, or by way of delegation from the chief purchasing officer to contract on its own behalf rather than through the central contracting authority of the chief purchasing officer.

(19) "Purchasing agent" shall mean any person authorized by a governmental body in accordance with procedures prescribed by regulations, to enter into and administer contracts and make written determinations and findings with respect thereto. The term shall also include an authorized representative acting within the limits of authority. "Purchasing agent" shall also mean the person appointed in accordance with section 37-2-1.

(20) "Services" shall mean the rendering, by a contractor, of its time and effort rather than the furnishing of a specific end product, other than reports which are merely incidental to the required performance of services. "Services" does not include labor contracts with employees of state agencies.

(21) "Shall" shall mean imperative.

(22) "State" shall mean the state of Rhode Island and any of its departments or agencies and public agencies.

(23) "Supplemental agreement" shall mean any contract modification which is accomplished by the mutual action of the parties.

(24) "Supplies" shall mean all property, including, but not limited to, leases of real property, printing, and insurance, except land or permanent interest in land.

(25) "Using agency" shall mean any governmental body or public agency of the state which utilizes any supplies, services or construction purchased under this chapter.

(26) As used in section 37-2-59 of this chapter, "architect" or "engineer" services shall mean those professional services within the scope of practice of architecture, professional engineering, or registered land surveying, pertaining to construction, as defined by the laws of this state. "Consultant" means any person with whom the state and/or a public agency has a contract which contract provides for the person to give direction or information as regards a particular area of knowledge in which the person is a specialist and/or has expertise.

(27) For purposes of sections 37-2-62 -- 37-2-70, "directors" shall mean those members of a public agency appointed pursuant to a statute, who comprise the governing authority of the board, commission, authority, and/or corporation.

SECTION 17. This Article shall take effect July 1, 1998.

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, 199 {DEL 7 DEL} {ADD 8 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 1997 DEL} {ADD 1998 ADD} shall be deemed to be for the periods ending prior to July 1, {DEL 1997 DEL} {ADD 1998 ADD} and net taxes received and/or refunded on or after August 1, {DEL 1997 DEL} {ADD 1998 ADD} shall be deemed to be for periods ending on July 1, {DEL 1997 DEL} {ADD 1998 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 monies 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, 1998 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 bond secured by the special revenue fund in the fiscal year commencing July 1, 1998 of the amount required to be deposited into any debt service fund for such purposes.

SECTION 3. This article shall take effect July 1, 1998.

SECTION 1. The amounts appropriated within section 1 of article 1 of this act include one million five hundred ninety five thousand five hundred dollars ($1,595,500) 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 thousand one hundred seventy five dollars ($20,175) on the bonds of the Rhode Island Refunding Bond Authority coming due during the fiscal year ending June 30, 1999, 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. This article shall take effect July 1, 1998.

SECTION 1. For the fiscal year ending June 30, 1999, 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, except for the Medical Advisory Board of the Workers' Compensation Court pursuant to Chapter 28-30-22 of the general laws.

SECTION 3. This article shall take effect July 1, 1998.

SECTION 1. Proposition to be submitted to the people. -- At the general election to be held on the Tuesday next after the first Monday in November, 1998, there shall be submitted to the people for their approval or rejection the following proposition:

"Shall the action of the general assembly, by an act passed at the January session 1998, authorizing the issuance of bonds, refunding bonds, and temporary notes of the state for the capital projects and in the amount with respect to each such project listed below be approved, and the issuance of bonds, refunding bonds, and temporary notes authorized in accordance with the provisions of said act?"

Project

Approval of this question will authorize the State of Rhode Island to issue its general obligation bonds, refunding bonds and temporary notes for transportation purposes to be allocated as follows:

Provides funds for the development and improvement of non-interstate highways and primary, secondary and urban systems; reconstruction, resurfacing and rehabilitation of interstate systems; bridge repair, and state transportation facilities.

Provides state match funds for the replacement of the maintenance facility for the Rhode Island Public Transit Authority at the Elmwood Avenue location.

(c) Salt Storage Facilities

$4,100,000

Provides funds for the construction of salt storage facilities for use by the Department of Transportation maintenance division for the statewide storage of sodium chloride used on snow and ice on the highways and roads.

(2) Higher Education Facilities

$20,990,000

Approval of this question will authorize the State of Rhode Island to issue its general obligation bonds, refunding bonds and temporary notes for higher education purposes to be allocated as follows:

(a) URI -Independence Hall

$5,060,000

Provides funds for a major rehabilitation of approximately 51,824 square feet at Independence Hall at the University of Rhode Island, to include modernization of finishes, lighting, plumbing systems, locking systems, and furnishings.

(b) URI-Lippitt Hall

$4,980,000

Provides funds for a major rehabilitation of approximately 36,852 square feet at Lippitt Hall at the University of Rhode Island, to include replacement and modernization of major systems, roof, windows, doors, restrooms, HVAC, stair tower, ADA compliance, and exterior/interior renovations.

(c) RIC- East Campus Facilities

$4,300,000

Provides funds for the renovation of 5 buildings (approximately 50,000 square feet) on the East campus at Rhode Island College and the renovation of approximately 12,500 square feet on the existing campus. Upon renovation of these former DCYF facilities, both academic and administrative facilities will be relocated to the East campus and some space vacated by those departments will be refurbished.

(d) CCRI - Providence Campus Addition

$6,650,000

Provides funds for the construction and equipping of an addition to the Providence campus of the Community College of Rhode Island adding approximately 40,000 square feet of space to the existing facility, including lab, office, study areas, child day care center, and parking for 75-100 vehicles.

(3) Environmental Management

$15,000,000

Approval of this question will authorize the State of Rhode Island to issue general obligation bonds, refunding bonds, and temporary notes for environmental and recreational purposes, specifically for the acquisition and development of greenways to be allotted as follows:

(a) Open Space

$ 5,000,000

Provide funds for the Department of Environmental Management to purchase or otherwise permanently protect through the purchase of development rights, conservation easements and public recreation easements greenways and other open space, agricultural land, {DEL DEL}forested lands and for the purchase of development rights by the Agricultural Land Preservation Commission to preserve farmland throughout the state consistent with the "Greenways, Greenspace" element of the State Guide Plan and the Department of Environmental Management Land Protection Plan. The Director of the Department of Environmental Management may award up to $2,500,000 to communities and local land trusts, conservation commissions and other environmental non-profit organizations to provide matching funds for acquisitions, easements, development rights, etc. on land consistent with the State Guide Plan.

(b) Bike Paths

$10,000,000

Provides funds for the development and promotion of bike paths throughout the State. Funding would be distributed as follows:

(i) State Regional Bikeways: ($5,000,000). Provide matching funds for the Department of Transportation and the Federal Highway Administration funds for the design and construction of the following regional bikeways:

Blackstone Bikeway

Washington Secondary/Coventry Greenway/Trestle Trail

South County Bikeway

(ii) Local Bikeways and Recreational Greenways: ($5,000,000). Provide funds to the Department of Environmental Management for the design and construction of local bikeways and recreational greenways. Local bikeways and recreational greenways are primarily off-road facilities that connect areas such as state and local parks, open space, regional bikeways, municipal and business centers, and other greenways consistent with the Greenspace Element of the State Guide Plan. At the discretion of the Director of the Department of Environmental Management, provide grants to local communities on a matching basis, for design and construction of local bikeways and recreational greenways.

SECTION 2. Ballot labels and applicability of general election laws. -- The secretary of state shall prepare and turn over to the state board of elections ballot labels for each of the projects (hereinafter sometimes referred to as "each such project", as "any such project" or as "such projects") listed in the propositions provided for in section 1 hereof with the words "approve" or "reject" next to each such project so that each voter may indicate his approval or rejection of each such project. The general election laws, so far as consistent herewith, shall apply to voting on the propositions authorized for in section 1 hereof.

SECTION 3. Approval of projects by people. -- If a majority of the people voting on the propositions provided for in section 1 hereof shall vote to approve said proposition as to any such project, said proposition shall be deemed to be approved as to each such project so approved by the people. The authority to issue bonds, refunding bonds and notes of the state shall be limited to the aggregate amount for all such projects as set forth in the propositions provided for in section 1 hereof which have been approved by the people.

SECTION 4. Bonds for capital development program. -- The general treasurer is hereby authorized and empowered with the approval of the governor and in accordance with the provisions of this act, to issue from time to time bonds (hereinafter sometimes referred to as "such capital development bonds") in serial form in the name and behalf of the state in such amounts as may be specified from time to time by the governor in an aggregate principal amount not to exceed the total amount for all such projects as have been approved by the people to be designated as "capital development loan of 1998 bonds" provided, however, that the aggregate principal amount of such capital development bonds and of any temporary notes outstanding at any one time issued in anticipation thereof pursuant to section 7 hereof shall not exceed the total amount for all such projects as have been approved by the people. All provisions in this act relating to "bonds" shall also be deemed to apply to "refunding bonds".

Such capital development bonds shall be in denominations of one thousand dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the United States which at the time of payment shall be legal tender for public and private debts. Such capital development bonds shall bear such date or dates, mature at such time or times, but not beyond the end of the twentieth state fiscal year following the state fiscal year in which they are respectively issued, bear interest payable semi-annually at such rate or different or varying rates, be payable at such time or times at such place or places, be subject to such terms of redemption or recall, with or without premium, be in such form, with or without interest coupons attached, carry such registration, conversion, reconversion, transfer, debt retirement, acceleration and other provisions as may be fixed by the general treasurer, with the approval of the governor, upon each issue of such capital development bonds at the time of each issue. Whenever the governor shall approve the issuance of such capital development bonds, he or she shall certify such approval to the secretary of state; such bonds shall be signed by the general treasurer and countersigned by the manual or facsimile signature of the secretary of state and shall bear the seal of the state or a facsimile thereof. The approval of the governor shall be endorsed on each bond so approved with a facsimile of his or her signature.

SECTION 5. Refunding bonds for 1998 capital development program. -- The general treasurer is hereby authorized and empowered, with the approval of the governor and in accordance with the provisions of this act, to issue from time to time bonds to refund the 1998 capital development program bonds in the name and on behalf of the state, in such amounts as may be specified from time to time by the governor in an aggregate principal amount not to exceed the total amount as has been approved by the people, to be designated as "capital development program loan of 1998 refunding bonds" (hereinafter "refunding bonds").

The general treasurer with the approval of the governor shall fix the terms and form of such refunding bonds in the same manner as the capital development bonds, except that the refunding bonds may not mature more than twenty (20) years from the date of original issue of the capital development bonds being refunded by such refunding bonds.

The proceeds of the refunding bonds, exclusive of any premium and accrual interest, shall, upon their receipt, be paid by the general treasurer immediately to the paying agent for the capital development bonds which are to be called and prepaid, and such paying agent shall hold such proceeds in trust until they are applied to prepay the bonds. While such proceeds are held in trust, they may be invested for the benefit of the state in obligations of the United States of America or the state of Rhode Island.

If the general treasurer shall deposit with the paying agent for such capital development bonds from the proceeds of the refunding bonds or from other sources sufficient amounts that, when invested in obligations of the United States or the state of Rhode Island, are sufficient to pay all principal, interest, and premium, if any, on the capital development bonds until such bonds are called for prepayment, then such capital development bonds shall not be considered debts of the state of Rhode Island for any purpose from the date of deposit of such moneys with the paying agent. The refunding bonds shall continue to be a debt of the state until paid.

The term "bond" shall include "note", and the term "refunding bonds" shall include "refunding notes" when used in this act.

SECTION 6. Proceeds of capital development program. -- The general treasurer is directed to deposit the proceeds from the sale of such capital development bonds, exclusive of premiums and accrued interest, in one or more of the depositories in which the funds of the state may be lawfully kept in such special accounts (hereinafter cumulatively referred to as "such capital development bond fund") appropriately designated for each of such projects set forth in section 1 hereof which shall have been approved by the people to be used for the purpose of paying the cost of all such projects so approved.

All monies in such capital development fund shall be expended for the purposes specified in the propositions provided for in section 1 hereof under the direction and supervision of the director of administration (hereinafter referred to as "said director") said director or his delegate, as the case may be, shall be vested with all power and authority necessary or incidental to the purposes of this act, including where appropriate without limiting the generality of said authority, and only by way of illustration, the following authority: (a) to acquire land or other real property or any interest, estate or right therein as may be necessary or advantageous to accomplish the purposes of this act; (b) to pay for the preparation of any reports, plans and specifications, and relocation expenses and other costs such as for furnishings, equipment designing, inspecting and engineering, required in connection with the implementation of any projects set forth in section 1 hereof; (c) to pay the costs of construction, rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other improvements to land in connection with the implementation of any projects set forth in section 1 hereof; and (d) to pay for the cost of equipment, supplies, devices, materials and labor for repair, renovation or conversion of systems and structures as necessary for such 1998 capital development program bonds or notes hereunder from the proceeds thereof.

No more of such monies in such capital development bond fund shall be expended for any such project than the total amount appearing next to the description of such project in the propositions provided for in section 1 hereof.

The state controller is authorized and directed to draw his or her orders upon the general treasurer for payment out of such capital development bond fund of such sum or sums as may be required from time to time, upon receipt by him or her of properly authenticated vouchers approved by said director or his or her delegate as the case may be.

The powers and authorities granted by this act to said director or his or her delegate, as the case may be, shall be in addition to, and not in substitution for, all other power provided by law.

SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority of this act shall be sold from time to time at not less than the principal amount thereof, in such mode and on such terms and conditions as the general treasurer, with the approval of the governor, shall deem to be for the best interests of the state.

Any premiums and accrued interest which may be received on the sale of such bonds or notes shall become part of the general fund of the state and shall be applied to the payment of debt service charges of the state.

In the event that the amount received from the sale of such bonds or notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may be used to the extent possible to retire said bonds as the same may become due, to redeem the same in accordance with the terms thereof or otherwise to purchase the same as the general treasurer, with the approval of the governor, shall deem to be for the best interests of the state.

Any bonds or notes issued under the provisions of this act and coupons on any bonds, if properly executed by the manual or facsimile signatures, as the case may be, of officers of the state in office on the date of execution shall be valid and binding according to their tenor notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall for any reason have ceased to hold office.

SECTION 8. Bonds and notes to be tax exempt and general obligations of the state. -- All bonds and notes issued under the authority of this act shall be exempt from taxation in the state and shall be general obligations of the state, and the full faith and credit of the state are hereby pledged for the due payment of the principal and interest on each of such bonds and notes as the same shall become due.

SECTION 9. Investment of moneys in fund. -- All moneys in such capital development fund not immediately required for payment pursuant to the provisions of this act may be invested by the investment commission, as established by Chapter 35-10, pursuant to the provisions of such chapter; provided, however, that the securities in which such fund is invested shall remain a part of such fund until exchanged for other securities; and provided further, that the income from such investments shall become a part of the general fund of the state and shall be applied to the payment of debt service charges of the state, or to the extent necessary, to rebate to the United States treasury any income from investments (including gains from the disposition of investments) of proceeds of bonds or notes to the extent deemed necessary to exempt (in whole or in part) the interest paid on such bonds or notes from federal income taxation.

SECTION 10. Amortization. -- To the extent the same is not otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise appropriated.

SECTION 11. Advances from general fund. -- The general treasurer is authorized from time to time with the approval of the director of administration and the governor, in anticipation of the issue of notes or bonds under the authority of this act, to advance to such capital development bond fund to be used for the purposes specified in section 6 hereof, any funds of the state not specifically held for any particular purpose, provided, however, that all such advances made to such capital development bond fund shall be returned to the general fund from such capital development bond fund forthwith upon the receipt by such fund of proceeds resulting from the issue of notes or bonds to the extent of such advances.

SECTION 12. Federal assistance and private funds. -- In carrying out this act, the director of administration, or his or her delegate, is authorized on behalf of the state, with the approval of the governor, to apply for and accept any federal assistance which may become available for the purpose of this act, whether in the form of loan or grant or otherwise, to accept the provision of any federal legislation therefor, to enter into, act and carry out contracts in connection therewith, to act as agent for the federal government in connection therewith, or to designate a subordinate so to act. Where federal assistance is made available, the project shall be carried out in accordance with applicable federal law, the rules and regulations thereunder and the contract or contracts providing for federal assistance, notwithstanding any contrary provisions of state law. Subject to the foregoing, any federal funds received for the purposes of this act shall be deposited in such capital development bond fund and expended as a part thereof. Said director of administration or his or her delegate may also utilize any private funds which may be made available for the purposes of this act.

SECTION 13. 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. Such original authorizations enacted by Public Law and approved by the people, remain unissued as of February 1, 1998 as follows:

SECTION 14. Section 35-3-7.2 of the General Laws in Chapter 35-3 entitled "State Budget" is hereby amended to read as follows:

35-3-7.2. Budget officer as capital development officer. -- The budget officer shall be a capital development program officer who shall be responsible for:

(1) The review of all capital development requests submitted by the various state departments {ADD , ADD} as set forth in {DEL title DEL} chapter 6 of title 42, which shall include all independent boards and commissions {ADD and the capital development plans of the Narragansett Bay Commission, Rhode Island Clean Water Finance Agency, the Lottery Commission, and all other public corporations, as defined in title 35, chapter 18 which plans would be subject to the provisions of section 35-18-3 ADD}; provided, that, except as provided for in this section, nothing in this section shall be construed to limit the powers of the board of governors for higher education as outlined in chapter 59 of title 16. {ADD Capital development requests and plans shall be submitted in such form, with such explanation, in such number of copies, and by such date as the budget officer may require. Copies shall also be provided directly to the house fiscal advisor and the senate fiscal advisor ADD}.

(2) Preparation of a capital budget which shall specify which capital items are proposed for presentation to the electorate at the next general election.

(3) The activities which will promote capital development planning and develop criteria which can be used to determine appropriate levels of bonded indebtedness.

(4) Acting as chairperson of the capital development planning and oversight commission which is to be appointed by the governor. The commission, in addition to recommending to the governor the biennial capital budget, shall implement a long range capital development planning process.

(5) Working with the board of governors for higher education in the development by the board of that portion of the board's capital development program involving annual general revenues.

SECTION 15. Pawtuxet River Authority.-- The general obligation bond authorization for the Pawtuxet River Authority approved by the voters in the amount of $9,000,000 in 1990 remains legally authorized and unissued and such Pawtuxet River Authority authorization shall be made available to address the severe water quality problems existing in the Pawtuxet River due to source point and non-source point pollution. This will be accomplished by providing funds to the Commission's representative communities of Warwick, West Warwick and Cranston for waste water treatment facilities, as eligible, pursuant to the Department of Environmental Management's technical review procedures.

SECTION 16. Effective Date. Sections 1, 2, 3, 14, 15 and this section of this article shall take effect upon its passage; section 13 shall take effect on June 30, 1998, the remaining sections of this article shall take effect when and if the state board of elections shall certify to the secretary of state that a majority of the qualified electors voting on the propositions contained in section 1 hereof have indicated their approval of all or any projects thereunder.

SECTION 1. The title of Chapter 36 of the General Laws in Chapter 36 of Title 31 entitled "Gasoline Tax" is hereby amended to read as follows:

SECTION 2. Sections 31-36-7 and 31-36-20 of the General Laws in Chapter 31-36 entitled "Gasoline Tax" are hereby amended to read as follows:

31-36-7. Monthly report of distributors -- Payment of tax. - (a)Every distributor shall, on or before the {DEL twenty-fifth DEL} {ADD twentieth ADD} 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 within this state {DEL and the wholesale selling price thereof, DEL} 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 {DEL the balance of a tax, if any, on all fuels sold or used by the distributor within this state, and the DEL}tax {DEL to be DEL}at the rate {DEL set forth in subsection (b) below DEL} {ADD of twenty-eight cents ($.28) per gallon on all taxable gallons of fuel sold or used in this state. ADD}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL 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. DEL}

{DEL (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-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-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-month period that begins on January 1 of the immediately following year. DEL}

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

{DEL (c) The tax administrator shall fix the tax rate for motor fuel in the manner prescribed in the following step: DEL}

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

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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-month period specified in subsection (b). DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

{DEL (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. DEL}

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

{DEL (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; DEL}

{DEL (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 the failure continues, not exceeding twenty-five percent (25%) in the aggregate; or DEL}

{DEL (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. DEL}

{DEL (5) Limitations and special rule. DEL}

{DEL (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); DEL}

{DEL (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; DEL}

{DEL (iii) The additions set forth in subsection (f)(5) 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. DEL}

{DEL (6) DEL} {ADD (b) ADD} 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.

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 {ADD for fiscal year beginning July 1, 1998 and thereafter, ADD} {DEL three cents ($.03) DEL} {ADD five cents ($.05) ADD} 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 ($.01) per gallon shall be transferred to the Elderly/Disabled Transportation Program of the department of elderly affairs, {DEL and nine cents ($.09) per gallon shall be available according to the following schedule: DEL} {ADD and the remaining cents per gallon shall be available for general revenue as determined by the following schedule: ADD}

(1) For the fiscal year 1998, seven cents shall be available for general revenue.

(2) For the fiscal year 1999, {DEL six cents DEL} {ADD four and one half cents ADD} shall be available for general revenue.

(3) For the fiscal year 2000, {DEL five cents DEL} {ADD three and one half cents ADD} shall be available for general revenue.

(4) For the fiscal year 2001, {DEL four cents DEL} {ADD two and one half cents ADD} shall be available for general revenue.

(5) For the fiscal year 2002, {DEL three cents DEL} {ADD one and one half cents ADD} shall be available for general revenue.

(6) For the fiscal year 2003, {DEL two cents DEL} {ADD one half cent ADD} shall be available for general revenue.

(7) For the fiscal year 2004, {DEL one cent DEL} {ADD no funding ADD} shall be available for general revenue.

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

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 3. Section 31-36-20.1 of the General Laws in Chapter 31-36 entitled "Gasoline Tax" is hereby repealed in its entirety.

{DEL 31-36-20.1. Appropriations . -- In addition, the sum of one million nine hundred thousand dollars ($1,900,000) is hereby appropriated for the financial support of the Rhode Island pavement management program, for fiscal year 1988-1989, as provided under section 24-8-16 [repealed by P.L. 1991, ch. 44, art. 12, section 1], and the transfer of the funds is hereby authorized. Provided, further, that beginning with the quarter ending December 31, 1989, and each quarter ending December 31 thereafter, an amount equal to the sum specified as appropriations in the annual appropriations act for the financial support of the Rhode Island pavement management program, shall be used for making appropriations as provided under section 24-8-16 [repealed by P.L. 1991, ch. 44, art. 12, section 1]. DEL}

SECTION 4. This article shall take effect July 1, 1998.

SECTION 1. Section 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled "Uncompensated Care" is hereby amended to read as follows:

408.33. Implementation. -- For the fiscal year commencing on October 1, {DEL 1997 DEL} {ADD 1998 ADD}, and ending September 30, {DEL 1998 DEL} {ADD 1999 ADD}, each participating hospital shall be paid by the department of human services on or before {DEL October 30, 1997 DEL} {ADD October 29, 1998 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 fourtenths percent (2.4%) DEL} {ADD six-tenths percent (2.6%) 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, 1998.

SECTION 1. Pursuant to the public laws, 1997, Chapter 30, Article 32 the effective date of the department of the environment, which was created by Chapter 461 of the public laws, 1990 was delayed until July 1, 1998 due to fiscal constraints.

The effective date of the following sections created by Chapter 461 of the public laws, 1990 are postponed again until July 1, 1999, sections 42-17.1-1 through 42-17.1-39 inclusive, and 42-17.1-41 through 42-17.1-44 inclusive.

SECTION 2. Sections 42-17.1-9.1 (Effective Until July 1, 1998), 42-17.1-29 (Effective July 1, 1998 and 42-17.1-40 of the General Laws in Chapter 42-17.1 entitled "Department of the Environment" are hereby amended to read as follows:

42-17.1-9.1. User fees at state beaches, parks, and recreation areas. [Effective until July 1, 1998.]. -- (a) The department of environmental management in pursuance of its administrative duties and responsibilities may charge a user fee for any state beach, {DEL park, DEL} or recreational area under its jurisdiction, and fees for the use of its services or facilities.

(b) The fee may be on a daily or annual basis, or both, and may be based on vehicle parking or other appropriate means. The fees may recognize the contribution of Rhode Island taxpayers to support the facilities in relation to other users of the state's facilities. The fee structure may acknowledge the need to provide for all people, regardless of circumstances.

{DEL (c) The motor vehicle entrance or parking fee for a Rhode Island resident shall not exceed the sum of two dollars ($2.00) and for a non-Rhode Island resident shall not exceed the sum of four dollars ($4.00) at Lincoln Woods state park, Goddard park, Fort Adams state park, Colt state park, Burlingame picnic area, Beach Pond beach area, Arcadia park swimming area or Pulaski state park. In addition, there shall be made available to Rhode Island residents for a fee not in excess of ten dollars ($10.00) a season's pass for motor vehicle entrance or parking fees at the above listed facilities. DEL}

(d) An additional fee for camping and other special uses may be charged where appropriate. Rates so charged should be comparable to equivalent commercial facilities.

(e) All such fees shall be established after a public hearing.

(f) All daily fees from beach parking, which shall also include fees charged and collected at Ninigret conservation area and Charlestown breachway, shall be shared with the municipality in which the facility is located on the basis of sixty percent (60%) retained by the state and forty percent (40%) remitted to the municipality. The municipality's annual share of these fees shall not exceed the following limitations: Charlestown thirty-five thousand dollars ($35,000); Westerly one-hundred twenty-five thousand dollars ($125,000); Narragansett one-hundred thirty thousand dollars ($130,000); and South Kingstown twenty thousand dollars ($20,000).

(g) Fifty percent (50%) of all user and concession fees received by the state shall be deposited as general revenues. For the year beginning July 1, 1979, the proportion of user and concession fees to be received by the state shall be sixty-five percent (65%); for the year beginning July 1, 1980, eighty-five percent (85%); and for the year beginning July 1, 1981, and all years thereafter, one hundred percent (100%). The general revenue monies appropriated are hereby specifically dedicated to meeting the costs of development, renovation of, and acquisition of state-owned recreation areas and for regular maintenance, repair and operation of state owned recreation areas. Purchases of vehicles and equipment and repairs to facilities shall not exceed four hundred thousand dollars ($400,000) annually. Notwithstanding the provisions of section 37-1-1 or any other provision of the general laws, the director of the department of environmental management is hereby authorized to accept any grant, devise, bequest, donation, gift, or assignment of money, bonds, or other valuable securities for deposit in the same manner as provided above for user and concession fees retained by the state.

(h) No fee shall be charged to any school or other nonprofit organization provided that a representative of the school or other organization gives written notice of the date and time of their arrival to the facility.

42-17.1-29. User fees at state beaches, parks, and recreation areas. [Effective July 1, 1998.]. -- (a) The commissioner of environmental management in furtherance of his or her administrative duties and responsibilities may charge a user fee for any state beach, {DEL park, DEL} or recreational area under its jurisdiction, and fees for the use of any of its services or facilities.

(b) The fee may be on a daily or annual basis, or both, and may be based on vehicle parking or other appropriate means. The fees may recognize the contribution of Rhode Island taxpayers to support the facilities in relation to other users of the state's facilities. The fee structure may acknowledge the need to provide for all people, regardless of circumstances.

{DEL (c) The motor vehicle entrance or parking fee for a Rhode Island resident shall not exceed the sum of one dollar ($1.00) and for a non-Rhode Island resident shall not exceed the sum of four dollars ($4.00) at Lincoln Woods state park, Goddard park, Fort Adams state park, Colt state park, Burlingame picnic area, Beach Pond beach area, Arcadia Park swimming area or Pulaski state park. In addition, there shall be made available to Rhode Island residents for a fee not in excess of five dollars ($5.00) a season's pass for motor vehicle entrance or parking fees at the above listed facilities. DEL}

(d) An additional fee for camping and other special uses may be charged where appropriate. Rates so charged should be comparable to equivalent commercial facilities.

(e) All such fees shall be established by the director after a public hearing.

(f) All daily fees from beach parking, which shall also include fees charged and collected at Ninigret conservation area and Charlestown beachway, shall be shared with the municipality in which the facility is located on the basis of sixty percent (60%) retained by the state and forty percent (40%) remitted to the municipality. The municipality's annual share of these fees shall not exceed the following limitations: Charlestown, thirty-five thousand dollars ($35,000); Westerly, one hundred twenty-five thousand dollars ($125,000); Narragansett, one hundred thirty thousand dollars ($130,000); and South Kingstown, twenty thousand dollars ($20,000).

(g) One hundred percent (100%) of all user and concession fees received by the state shall be deposited as general revenues. The general revenue monies appropriated may be hereby specifically dedicated to meeting the costs of development and renovation by the director of recreation projects with an expected life of five (5) or more years, and acquisition by the director of state-owned recreation areas. Such projects shall include the purchase of vehicles and equipment and the repair of facilities which have a life expectancy of five (5) or more years and which are used exclusively for state-owned recreational areas. Purchases of vehicles and equipment and repairs to facilities shall not exceed four hundred thousand dollars ($400,000) annually. Notwithstanding the provisions of section 37-1-1 or any other provision of the general laws, the director is hereby authorized to accept any grant, devise, bequest, donation, gift, or assignment of money, bonds, or other valuable securities for deposit as general revenues in the same manner as provided above for user and concession fees retained by the state.

4217.140. Continuity of administrative functions. -- In order to insure continuity of the administrative business of the state, the actual transfer of functions or any part thereof to the department of the environment from the department of environmental management, department of health, water resources board, and such other boards, commissions, departments, and/or agencies has been postponed after the effective date of chapter 461 of the Public Laws of 1990, and the functions and authorities of the department of environmental management, the department of health, water resources board, and such other boards, commissions, departments and/or agencies shall remain unaffected hereby, regardless of the repeal by chapter 461 of the public laws of 1990 of any law under which such departments, boards, commissions or other agencies are empowered, which laws shall remain in effect until July 1, {DEL 1998 DEL} {ADD 1999 ADD} when the transfers herein provided can be put into force and effect at which time the repeal of such laws shall become final.

SECTION 3. This article shall take effect on July 1, 1998. All acts of the state which were authorized by and performed in good faith and in reliance upon the effectiveness of Chapter 461 of the public laws, 1990, Chapter 133 of the public laws, 1992, Chapter 138 of the public laws, 1993, Chapter 70 of the public laws, 1994, Chapter 370 of the public laws, 1995, Chapter 100 of the public laws, 1996 and Chapter 30 of the public laws, 1997 are hereby ratified and confirmed.

SECTION 1. Section 39-21.1-14 of the General Laws in Chapter 39-21.1 entitled "911 Emergency Telephone Number Act" is hereby amended to read as follows:

39-21.1-14. Funding. -- (a) A monthly surcharge of forty-seven cents ($.47) is hereby levied upon each residence and business main telephone exchange line, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network (such as, but not exclusive of, integrated services digital network (ISDN)). Flexpath or comparable digital private branch exchange) or to or from a customer-based or dedicated telephone switch site (such as, but not exclusive of, a private branch exchange (PBX)), or to or from a customer-based or dedicated central office (such as, but not exclusive of, a centrex system but exclusive of trunks and lines provided to wireless communication companies) in the state. The surcharge shall be billed by each telephone common carrier and shall be payable to the telephone common carrier by the subscriber of the telephone service. A monthly surcharge of forty-seven cents ($.47) is hereby levied effective September 1, 1997, on each wireless telecommunication instrument or device which has access to, connects with, or interfaces with the E 9-1-1 Uniform Emergency Telephone System. The surcharge shall be billed by each telecommunication services provider and shall be payable to the telecommunication services provider by the subscriber.

(b) The amount of the surcharge shall not be subject to the tax imposed under chapter 18 of title 44 nor be included within the telephone common carrier's gross earnings for the purpose of computing the tax under chapter 13 of title 44.

(c) Each telephone common carrier and each telecommunication services provider shall establish a special account to which it shall deposit on a monthly basis the amounts collected as a surcharge under this section. In determining the amount collected, the telephone common carrier or telecommunication services provider may include a factor for uncollectible billings computed in accordance with its customary business practice.

(d) The money collected by the telephone common carrier shall be transferred within sixty (60) days after its inception of communications services in this state and every month thereafter, to the general treasury, together with the accrued interest and shall be kept in the E 9-1-1 emergency services fund, a designated account for the operation of the E 9-1-1 system {DEL . DEL} {ADD ;provided that in FY 1999, $871,025 of the fund's resources shall be provided to the judicial department to fund the state's Justice-Link project. ADD} The money collected by the telecommunication services provider shall be transferred within ninety (90) days. After the initial imposition of the surcharge, and every calendar quarter thereafter, to the general treasury with accrued interest and shall be deposited to the general fund as general revenue.

(e) Every billed subscriber-user shall be liable for any surcharge imposed under this section until it has been paid to the telephone common carrier or telecommunication services provider. Any surcharge shall be added to and may be stated separately in the billing by the telephone common carrier or telecommunication services provider and shall be collected by the telephone common carrier or telecommunication services provider.

(f) Each telephone common carrier and telecommunication services provider shall annually provide the 911 authority or any other agency that may replace it, with a list of amounts uncollected together with the names and addresses of its subscriber-users who can be determined by the telephone common carrier or telecommunication services provider to have not paid the surcharge.

(g) Included within, but not limited to, the purposes for which the amounts accumulated in the E 9-1-1 emergency services fund may be used as rent, maintenance, repair, and utilities for the site or sites occupied by the E 9-1-1 uniform emergency telephone system: salaries, benefits, and other associated personnel costs; acquisition, upgrade or modification of PSAP equipment to be capable of receiving E 9-1-1 information, including necessary computer hardware, software, and data base provisioning, addressing, and non-recurring costs of establishing emergency services; network development, operation and maintenance; data-base development, operation, and maintenance; on-premise equipment maintenance and operation; training emergency service personnel regarding use of E 9-1-1; educating consumers regarding the operations, limitations, role and responsible use of E 9-1-1; reimbursement to telephone common carriers or telecommunication services providers of rates or recurring costs associated with any services, operation, administration or maintenance of E 9-1-1 services as approved by the authority; reimbursement to telecommunication services providers or telephone common carriers of other costs associated with providing E 9-1-1 services, including the cost of the design, development, and implementation of equipment or software necessary to provide E 9-1-1 service information to PSAP's, as approved by the authority {ADD ; provided that in FY 1999, $871,025 of the fund's resources shall be provided to the judicial department to fund the state's Justice-Link project. ADD}

(h) Any unexpended funds in the E 9-1-1 emergency services fund account at the end of the fiscal year may not lapse but must be carried forward to be expended for the purposes described in this section.

(i) Nothing in this section shall be construed to constitute rate regulation of wireless communication services carriers, nor shall this act be construed to prohibit wireless communication services carriers from charging subscribers for any wireless service or feature.

SECTION 2. There shall hereby be created a receipt account within the judiciary accounts to provide for the receipt of funds from the E-911 system as provided in Section 39-21.1-14(d) to be used solely for expenditures related to the Justice-Link project.

SECTION 3. This article shall take effect July 1, 1998.

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 two hundred dollars ($200) per month 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, 1998.

SECTION 1. The governor and the general assembly hereby find and declare that early childhood experiences influence a child's school performance in later years. Factors such as health, nutrition, education and social environment in the early stages of a child's life can have a significant impact on a child's future educational achievements. Recent research in neuroscience and early brain development supports the critical importance of the early childhood years and their life long effects on a child's development. The Rhode Island Danforth Policymaker's Team recognized that the child who enters school ready to learn in all relevant respects -- socially, emotionally, medically and academically, is more likely to perform well in school and ultimately become a productive member of society.

The governor and the general assembly further find and declare that the demand for quality child care has risen substantially in recent years due in part to the rising number of working parents and the transition of public assistance recipients into the work force; that the present supply of quality child care is insufficient to meet the increased demand for such care; and that expansion of currently available child care programs is necessary to meet these growing demands. Such expansion of child care programs should address the present need of parents of adolescent children who are not receiving adequate supervision during after school hours and the impact of such lack of supervision on the delinquency and teen pregnancy rates of young adults.

The governor and the general assembly recognize the findings of the governor's juvenile justice reform task force that many school age children need child care before and after school. It is estimated that in the United States nearly five million (5,000,000) school age children spend time without adult supervision each week. Youth are at greatest risk of violence after the regular school day. Youth between the ages of twelve (12) and seventeen (17) are most at risk of committing violent acts or being victims between 2:00 P.M. and 6:00 P.M. Barriers to participation in after school programs are lack of transportation, availability of programs and parents' inability to pay for such programs. The governor and the general assembly find that there is a need to increase the availability of after school programs and make them affordable and accessible for working families.

The governor and the general assembly recognize the value of Rhode Island's child care subsidy program in assisting low-income working families to pay for care. The governor and general assembly are further aware that a family's income is inversely related to its child care expenditures; thus, as a family's income decreases, the proportion of the family's income which is spent on child care increases. Furthermore, the cost of full time care is often the largest expense, after housing, for working parents who pay for child care.

The governor and the general assembly find that it is important for all children to access early education and care programs, particularly for low income children whose families are least able to pay for quality programs. Head Start is a comprehensive early childhood development program for low income children. In 1996, there were two thousand three hundred and sixty-five (2,365) children enrolled in Head Start in Rhode Island; however, it is estimated that there are seven thousand eight hundred (7,800) children that are eligible to receive Head Start services. In order to ensure that children enter school ready to learn, it is necessary to increase the availability of comprehensive early education and care programs, including Head Start and other programs which provide social services, health, mental health, nutrition services, parent involvement and transition services for children entering kindergarten.

According to the Carnegie Task Force On Meeting the Needs of Young Children, "Children who receive warm and sensitive caregiving are more likely to trust caregivers, to enter school ready to learn, and to get along with other children". The governor and the general assembly recognize that reimbursement rates to child care providers help them to direct resources for training and retaining staff.

The governor and the general assembly find that it is the responsibility of the Children's Cabinet to work toward universal access to early education programs for all children and a system of quality early education and care that takes into consideration the needs of children and families. Quality early education and care programs provide social services, mental health, nutrition and education within their programs or through collaboration with other community services. Quality early education and care programs involve parents and are flexible to meet the individual needs of children and families. They collaborate with private agencies, local schools and neighborhood organizations and provide transition services to children entering elementary school. Finally, quality early education and care programs have well-trained staff who are knowledgeable in child growth and development.

Wherefore, in order to ensure that children are socially, medically and academically ready to learn by the time they enter school; to assist working parents in their struggle to meet the growing demands of child care; and to expand and implement changes to child care programs and services which are beneficial to our children and for the general welfare of society, the governor proposes, and the general assembly hereby enacts this "Starting Right Initiative."

SECTION 2. Sections 40-5.1-17 of the General Laws in Chapter 40-5.1 entitled "Family Independence Act" is hereby amended to read as follows:

40-5.1-17. Families eligible for child care assistance. -- (a) The department shall provide appropriate child care to every parent who requires child care in order to meet the work requirements in section 40-5.1-9 and to all other families with incomes at or below one hundred eighty-five percent (185%) of the federal poverty line, if and to the extent such other families require child care in order to work at paid employment {DEL . DEL} {ADD ; provided, however, that effective January 1, 1999, the department shall provide appropriate child care to such other families whose incomes are at or below two hundred percent (200%) of the federal poverty line; effective July 1, 1999, the department shall provide appropriate child care to such other families whose incomes are at or below two hundred twenty-five percent (225%) of the federal poverty line; and effective July 1, 2000, the department shall provide appropriate child care to such other families whose incomes are at or below two hundred fifty percent (250%) of the federal poverty line. ADD}

{ADD (b) For purposes of this section "appropriate child care" means child care, including infant/toddler, pre-school, nursery school, school-age, and youth care, which is provided by a person or organization qualified, approved, and authorized to provide such care by the department of children, youth, and families, or by the department of elementary and secondary education, or such other lawful providers as determined by the department of human services, in cooperation with the department of children, youth and families and the department of elementary and secondary education, subject to the following age limitations: ADD}

{ADD (i) through December 31, 1998, for a child below the age of thirteen (13), or children age thirteen (13) years or older who are under supervision of the family court or who require care because of a physical or mental impairment; ADD}

{ADD (ii) effective January 1, 1999, for a child below the age of fifteen (15); ADD}

{ADD (iii) effective July 1, 1999, for a child below the age of sixteen (16); ADD}

{ADD (c) The department of human services shall determine rates of reimbursement for child care services for children over the age of twelve (12) in accordance with the provisions of 40-6.2-1.1(d). ADD}

For purposes of this section "appropriate child care" is defined in section 40-5.1-9(e).

{DEL (b) DEL} {ADD (d) ADD} Families with incomes below one hundred percent (100%) of the applicable federal poverty guidelines shall be provided with free child care. Families with incomes equal to or greater than one hundred percent (100%) of the applicable federal poverty guideline shall be required to pay for some portion of the child care they receive, according to a sliding fee scale adopted by the department.

{DEL (c) DEL} {ADD (e) ADD} In determining the type of child care to be provided to a family, the department shall take into account the cost of available child care options and the suitability of the type of care available for the child and the parent's preference as to the type of child care.

{DEL (d) DEL} {ADD (f) ADD} For purposes of this section "income" for families receiving cash assistance under section 40-5.1-9 means gross earned income and unearned income, subject to the income exclusions in section 40-5.1-10(b) and section 40-5.1-10(c); and income for other families shall mean gross earned and unearned income as determined by departmental regulations.

{DEL (e) DEL} {ADD (g) ADD} The entitlement provided for in subsection (a) shall be an entitlement to payment of a subsidy for child care to an appropriate child care provider as defined in {DEL section 40-5.1-9(e). DEL} {ADD subsection (b). ADD} The caseload estimating conference established by chapter 17 of title 35 shall forecast the expenditures for child care in accordance with the provisions of section 35-17-1.

SECTION 3. Section 40-6.2-1.1 of the General Laws in Chapter 40-6.2 entitled "Child Care--State Subsidies" is hereby amended to read as follows:

40-6.2-1.1. Rates established. -- (a) The reimbursement rate for home based and center based child care providers shall be on the following basis:

(1) Home based child care providers shall be reimbursed at least sixty-six dollars ($66.00) per week for each child under three (3) years of age and at least forty-four dollars ($44.00) per week for each child three (3) years old to five (5) years old;

(2) Center based child care providers shall be reimbursed at least eighty dollars ($80.00) per week for each child under three (3) years of age and at least fifty-three dollars ($53.00) per week for each child three (3) years old to five (5) years old.

(b) Effective January 1, 1998, the {ADD minimum ADD} reimbursement rates to be paid by the Departments of Human Services and Children, Youth and Families for licensed child care centers and certified family-child care providers shall be based on the following schedule of percentages of the 75th percentile of weekly market rates:

LICENSED	75th	PERCENTAGE	PERCENTAGE	PERCENTAGE
CHILD CARE	PERCENTILE	EFFECTIVE	EFFECTIVE	EFFECTIVE
CENTERS	OF WEEKLY	1/1/98	1/1/99	{DEL1/1/2000 DEL} {ADD 7/1/1999 ADD}
	MARKET RATE

INFANT	$129.50	85.4%	92.7%	100.00%
PRESCHOOL	$100.00	84.3%	92.1%	100.00%
SCHOOL-AGE	$ 85.00	85.1%	92.6%	100.00%

CERTIFIED	75th	PERCENTAGE	PERCENTAGE	PERCENTAGE
FAMILY CHILD CARE	PERCENTILE	EFFECTIVE	EFFECTIVE	EFFECTIVE
PROVIDERS	OF WEEKLY	1/1/98	1/1/99	{DEL1/1/2000 DEL} {ADD 7/1/1999 ADD}
	MARKET RATE

INFANT	$105.00	86.4%	93.2%	100.00%
PRESCHOOL	$100.00	76.8%	88.4%	100.00%
SCHOOL-AGE	$100.00	70.0%	85.0%	100.00%

(c) By June 30, 1998 and biennially thereafter, the Department of Labor and Training shall conduct an independent survey or certify an independent survey of the then current weekly market rates for child care in Rhode Island and shall forward such weekly market rate survey to the Department of Human Services. The Departments of Human Services and Labor and Training will jointly determine the survey criteria including, but not limited to, rate categories and sub-categories. The 75th percentile of weekly market rates in the table in subsection (b) shall be adjusted by the surveys conducted under this subsection, beginning January 1, 2000 and biennially thereafter. For the purposes of this section, and until adjusted in accordance with this subsection, the 75th percentile of weekly market rate shall mean the 1993 Department of Human Services Child Care Market Survey.

{ADD (d) The department of human services is authorized and directed to establish rates of reimbursement for appropriate child care provided to children older than twelve (12) years of age, so as to implement the provisions of 40-5.1-17(b). ADD}

{ADD (e) In order to expand the accessibility and availability of quality child care, the department of human services is authorized to establish by regulation alternative or incentive rates of reimbursement for quality enhancements, innovative or specialized child care and alternative methodologies of child care delivery, including non-traditional delivery systems and collaborations. ADD}

SECTION 4. Chapter 40-6.2 of the General Laws entitled "Child Care--State Subsidies" is hereby amended by adding thereto the following section:

{ADD 40-6.2-5. Health care coverage for center-based care providers. -- ADD} {ADD (a) The department of human services is authorized and directed to establish a health care buy-in option through its RIte Care program for center-based child care providers who provide child care services paid for in whole or in part by the department of human services or the department of children, youth, and families, and who meet the eligibility requirements of this section. ADD}

{ADD (b) A center-based provider shall be eligible to participate if: ADD}

{ADD (i) the provider is licensed as a child day care provider by the department of children, youth, and families pursuant to chapter 72.1 of title 42; and ADD}

{ADD (ii) the provider demonstrates that it meets the minimum subsidized child care participation rates specified in subsection (c), (d), or (e), for the applicable period; and ADD}

{ADD (iii) the provider elects to exercise this health care buy-in coverage option on behalf of its employees and makes timely payment of the provider's share of the premium. ADD}

{ADD (c) Effective January 1, 1999, if the number of children served by the provider who meet the department's child care assistance income guidelines under section 40-5.1-17 is at least fifty percent (50%) of the licensed capacity of the provider, then the center based child care provider shall pay fifty percent (50%) of the monthly premiums attributable to the center's participating employees. ADD}

{ADD (d) Effective July 1, 1999, if the number of children served by the provider who meet the department's child care assistance income guidelines under 40-5.1-17 is at least forty percent (40%) of the licensed capacity of the provider, then the center-based child care provider shall pay fifty percent (50%) of the monthly premiums attributable to the center's participating employees. ADD}

{ADD (e) Effective July 1, 2000, if the number of children served by the provider who meet the department's child care assistance income guidelines under section 40-5.1-17 is at least thirty percent (30%) of the licensed capacity of the provider, then the center-based child care provider shall pay fifty percent (50%) of the monthly premiums attributable to the center's participating employees. ADD}

{ADD (f) The department of human services is authorized to promulgate rules and regulations which it deems necessary to effect the intent and further define the terms and provisions of this section, and which may include, but need not be limited to the terms, premiums, conditions, limitations, and restrictions of the health care buy-in option, and enrollment periods and procedures. ADD}

SECTION 5. Section 42-12-23 of the General Laws in Chapter 42-12 entitled "Department of Human Services" is hereby amended to read as follows:

42-12-23. Child day care -- Planning and coordinating. -- (a) The department of human services shall be the principal agency of the state for the planning and coordination of state involvement in the area of child {DEL day DEL} care. To accomplish this purpose, the department's duties shall include submitting an annual report to the governor and the general assembly on the status of child day care in Rhode Island.

(b) The annual report of the department shall include, but not be limited to, the following information: (1) the amount of state and federal funds spent on child {DEL day DEL} care in each of the two (2) preceding years; (2) the number of child {DEL day DEL} care providers licensed pursuant to the provisions of chapter 72.1 of this title; (3) the number of children served in state subsidized programs; (4) the number of taxpayers who have claimed the child {DEL day DEL} care assistance and development tax credit pursuant to chapter 47 of title 44; (5) the average cost for both infant and preschool child care; (6) an estimate of unmet needs for child {DEL day DEL} care; (7) information on child {DEL day DEL} care staff salaries and training and education programs, and recommendations for any changes in child {DEL day DEL} care public policy.

(c) The department shall cooperate with the unit of the department {DEL for DEL} {ADD of ADD} children, {ADD youth, ADD} and {DEL their DEL} families which licenses and monitors child {DEL day DEL} care providers pursuant to the terms of chapter 72.1 of this title.

{ADD (d) The department is hereby charged with the responsibility of assuring that a statewide child care resource and referral system exists in this state to provide services and consumer information to assist parents in locating and choosing licensed, approved and/or certified providers, and to maintain data necessary for such referrals. ADD}

SECTION 6. Chapter 42-12 of the General Laws entitled "Department of Human Services" is hereby amended by adding thereto the following sections:

{ADD 42-12-24. Development, innovation and start-up of early education and care programs. -- ADD} {ADD (a) The general assembly shall annually appropriate to the department of human services such funds as it deems necessary to enable the department to develop and expand availability of child care providers and programs. The development and expansion of child care providers and programs shall include, without limitation, the development of innovative start-up arrangements linked to small businesses, the development of programs and providers in geographically underserved areas, and the establishment of before and after school programs with priority to be given by the department to programs linked to schools, to infant/toddler programs, programs related to child opportunity zone family centers, and programs that serve children with special health needs or developmental risks. Funds may be used for start up costs which may include building, rehabilitation or construction costs. ADD}

{ADD (b) The director of the department of human services is further authorized to request such appropriation for each state fiscal year as he or she deems necessary to carry out the program and purposes of this section. ADD}

{ADD 42-12-25. Child care training, accreditation, technical assistance, and monitoring. -- ADD} {ADD (a) The general assembly shall annually appropriate to the department of human services such funds as it deems necessary to enable the department to assist providers in obtaining national accreditation, to expand child care staff development and training, and for technical. assistance and monitoring, including but not limited to activities which provide: ADD}

{ADD (i) training opportunities for child care providers which foster a coordinated link between the providers and the schools; ADD}

{ADD (ii) specialized training for providers of infant/toddler and/or pre-adolescent care; ADD}

{ADD (iii) evaluation of child care providers and programs through parent surveys and formal evaluation techniques; ADD}

{ADD (iv) technical assistance and training for current and prospective non-English speaking providers. ADD}

{ADD (b) The director of the department of human services is further authorized to request such appropriation for each state fiscal year as he or she deems necessary to carry out the programs and purposes of this section. ADD}

{ADD 42-12-26. Expansion and enhancement of early education and care for low-income children. -- ADD} {ADD (a) The general assembly shall annually appropriate such funds as it deems necessary to enable the department of human services to establish a program whose express purposes are: ADD}

{ADD (i) to increase the numbers of eligible children in existing Head Start program, especially in underserved areas; and ADD}

{ADD (ii) to increase resources to child care providers for the enhancement of services to low income children. Enhancement of services shall include social services, health, mental health, nutrition service, parent involvement and transition services for children entering kindergarten. ADD}

{ADD (b) The director of the department of human services is further authorized to request such appropriation for each state fiscal year as he or she deems necessary to carry out the programs and purposes of this section. ADD}

{ADD (c) A panel comprised of the members of the Children's Cabinet and five (5) members of the public, to be chosen by the chairperson of the Children's Cabinet, shall be responsible for determining how the funds prescribed in this section shall be allocated; and shall by May 1, 1999 establish the methodology of enhancing comprehensive services in child care programs serving low income children and establish the numbers of additional Head Start slots in underserved areas to be funded; provided, however, that priority shall be given in the allocation of funds to applicants who serve children in underserved communities; who integrate children with special needs; who collaborate with existing early education and care programs and other existing services including child opportunity zone family centers, schools and agencies providing health, mental health, nutrition and social services; and who address the child care needs of the families to be served. ADD}

SECTION 7. Section 42-72.1-3 of the General Laws in Chapter 42-72.1 entitled "Licensing and Monitoring of Child Care Providers" is hereby amended to read as follows:

42-72.1-3. Powers and scope of activities. -- (1) The department shall issue, deny, and revoke licenses for, and monitor the operation of, facilities and programs by child placing agencies and child care providers, as defined in section 42-72.1-2.

(2) The department shall adopt, amend, and rescind regulations in accordance with this chapter and implement its provisions. The regulations shall be promulgated and become effective in accordance with the provisions of the Administrative Procedures Act, title 42, chapter 35.

(3) The department through its licensing unit shall administer and manage the regulations pertaining to the licensing and monitoring of such agencies, and shall exercise all statutory and administrative powers necessary to carry out its functions.

(4) The administrator shall investigate complaints of noncompliance, and shall take such licensing action as required.

(5) Regulations formulated pursuant to the foregoing authority shall include, but need not be limited to, the following:

(a) Financial, administrative and organizational ability, and stability of the applicant;

(b) Compliance with specific fire and safety codes and health regulations;

(c) Character, health suitability, qualifications of child care providers;

(d) Staff/child ratios and workload assignments of staff providing care or supervision to children; and

(e) Type and content of records or documents that must be maintained to collect and retain information for planning and caring for children;

(f) Procedures and practices regarding basic child care and placing services to ensure protection to the child regarding the manner and appropriateness of placement;

(g) Service to families of children in care;

(h) Program activities, including components related to physical growth, social, emotional, educational, and recreational activities, social services and habilitative or rehabilitative treatment;

(i) Investigation of previous employment, criminal record check and department records check.

(j) Immunization and testing requirements for communicable diseases, including, but not limited to tuberculosis, of child care providers and children at any child day-care center or family day-care home as is specified in regulations promulgated by the director of the department of health. Notwithstanding the foregoing, all licensing and monitoring authority shall remain with the department of children, youth, and families.

(6) The administrator may:

(a) Prescribe such forms for reports, statements, notices, and other documents as are deemed necessary;

(b) Prepare and publish manuals and guides explaining this chapter and the regulations to facilitate compliance with and enforcement of the regulations;

(c) Prepare reports and studies to advance the purpose of this chapter;

(d) Provide consultation and technical assistance, as requested, to assist licensees in maintaining compliance; and

(e) Refer to the advisory council for children and families for advice and consultation on licensing matter.

(7) The department may promulgate rules and regulations for the establishment of child day care centers located on the second floor.

(8) When the department is otherwise unsuccessful in remedying noncompliance with the provisions of this chapter and the regulations promulgated thereunder, it shall petition the family court for an order enjoining such noncompliance or for such order as equity and justice may require.

{ADD (9) The department shall collaborate with the departments of human services, elementary and secondary education, and health to provide monitoring, mentoring, training, technical assistance and other services which are necessary and appropriate to improving the quality of child care offered by child care providers who are certified, licensed or approved by the department or the department of elementary and secondary education or who are seeking certification, licensure or approval pursuant to 42-72-1 or 16-48-2, including non-English speaking providers. ADD}

SECTION 8. Section 45-49-4 of the General Laws in Chapter 45-49 entitled "School Age Child Care" is hereby amended to read as follows:

45-49-4. Transportation. -- {ADD (a) ADD} Any school district may elect to provide transportation to any child attending grades kindergarten through grade eight (8), between the school the child attends and a before or after school licensed child care location. School districts which elect to provide transportation between schools and licensed child care locations shall be eligible to receive state reimbursement for such transportation under the state school aid program. School districts shall promulgate policies and procedures to govern any transportation program which they elect to provide.

{ADD (b) The department of elementary and secondary education shall urge all local school districts to ascertain the numbers of their students going to after school child care programs and further to investigate the feasibility of transporting children to licensed or certified child care providers within their district and within their established busing policy. ADD}

SECTION 9. This act shall take effect on July 1, 1998.

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 percent (2.0%) upon the gross patient services revenue of every hospital for the hospital's first fiscal year ending on or after January 1, 1995. 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 October 31, 1997 DEL} {ADD October 30, 1998 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 October 1, {DEL 1997 DEL} {ADD 1998 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, 1998 and shall apply to hospitals, as defined in Section 1, which are duly licensed on July 1, 1998. 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 14 of the 1998 Public Laws entitled "Revised Appropriations" relating specifically to the appropriations of the Department of Administration, Mental Health, Retardation and Hospitals, Elderly Affairs, Human Services, Elementary and Secondary Education, Board of Governors for Higher Education, Judicial, Department of Environmental Management, and Department of Transportation, the General Revenue total, Federal total, Restricted Receipt total, Other Funds total and the Grand Total is hereby amended to read as follows:

Department of Administration

General
General Revenue	(94,187)
Other Funds
Chapin Health Laboratory (Delaware)	(650,000)
Cranston Street Armory (Delaware)	(250,000)
Powers Building Garage Sealing (Delaware)	(368,000)
Underground Storage Tanks	(250,000)
URI/Civic Center Study (Delaware)	(1,047)
Other Funds Total	(1,519,047)
Grand Total Department of Administration	(1,613,234)
Department of Elderly Affairs
General Revenue Funds Total	339,402
Grand Total - Elderly Affairs	339,402
Human Services
S.S.I. Program
General Revenue Funds Total	(25,852)
Temporary Assistance for Needy Families
General Revenue Funds Total	(382,944)
Federal Funds
Temporary Assistance for Needy Families	(705,105)
Total-Temporary Assistance for Needy Families	(705,105)
State Funded Programs
General Public Assistance	(455)
Food Stamps-State Program	(863,064)
Weatherization One Time Payment	80,900
General Revenue Funds Total	(782,619)
Grand Total General Revenue Funds	(1,191,415)
Grand Total Human Services	(1,896,520)
Mental Health, Retardation and Hospitals
Central Management
General Revenue Funds Total	(282,238)
Total - Central Management	(282,238)
Hospital and Community System Support
General Revenue Funds Total	1,402,772
Total-Hospital and Community System Support	1,402,772
Services for the Developmentally Disabled
General Revenue Funds Total	75,453
Total - Services for the Developmentally Disabled	75,453
Hospital and Community Rehabilitative Services
General Revenue Funds Total	(4,726,921)
Total-Hospital and Community Rehab.	(4,726,921)
Total - General Revenue Funds	(3,530,934)
Grand Total: Mental Health, Retardation & Hospitals	(3,530,934)
Elementary and Secondary Education
Workforce Development
Other Funds
Delaware-Woonsocket Career/Tech HVAC	(200,000)
Other Funds Total	(200,000)
Grand Total-Elementary & Secondary Education	(200,000)
Board of Governors for Higher Education
Other Funds
Higher Education Challenge Grants	(133,000)
Other Funds Total	(133,000)
Grand Total-Board of Governors for Higher Education	(133,000)
Judiciary
Supreme Court
General Revenue Funds	(988,751)
Supreme Court Federal Funds	(1,364,400)
Other Funds
Delaware-Kent County Court House	(100,000)
Delaware-Garrahy Judicial Complex Renovations	(250,000)
Other Funds Total	(350,000)
Total Supreme Court	(2,703,151)
Justice Link Program
General Revenue Funds	988,751
Federal Funds	1,364,400
Total Justice Link Program	2,353,151
Grand Total-General Revenue Funds
Grand Total: Judiciary	(350,000)
Department of Environmental Management
Policy and Administration
General Revenue	(379,666)
Boating Registration Restricted Receipts	379,666
Total Police & Administration	0
Natural Resources
General Revenues	(620,334)
Boating Registration Restricted Receipts	550,334
Delaware Funds - Misquamicut Beach Other Funds	(773,000)
Total Natural Resources	(843,000)
General Revenue	(1,000,000)
Restricted Receipts	930,000
Other Funds	(773,000)
Total	(843,000)
Department of Transportation
Infrastructure-Maintenance Gasoline Tax Other Funds	(2,294,000)
Infrastructure-Engineering Intermodal Surface Trans. Fund TBA	(7,500,000)
Grand Total: Transportation	(9,794,000)
General Revenue Total	(5,477,134)
Federal Total	(705,105)
Restricted Receipt Total	930,000
Other Funds Total	(12,769,047)
Grand Total	(18,021,286)

SECTION 2. Judicial year end balances for the Justice Link Program-Reappropriation. Notwithstanding the provisions of section 35-3-15 of the General Laws in chapter 35-3 entitled "State Budget", all unexpended, and unencumbered balances of said revenue appropriations within the judicial budget, specifically for the Justice Link Program, whether general revenue, federal, or restricted receipt appropriations, at the end of fiscal year 1997-1998 shall be reappropriated in the ensuing fiscal year and made immediately available for the same purposes as the Justice Link Program originally mandated.

SECTION 3. Administration year end balances for the accounts receivable collections contract. Notwithstanding the provisions of section 35-3-15 of the general laws in chapter 35-3 entitled "State Budget", all unencumbered and unexpended balances of the $108,000 general revenue appropriation included in the Accounts & Control General Revenue Funds total appropriation in Public Law 1998 Chapter 14 for the accounts receivable collections contract, at the end of fiscal year 1997-1998, shall be reappropriated in the ensuing fiscal year and made immediately available for the same purpose.

SECTION 4. This article is effective upon passage and is retroactive to April 15, 1998.

SECTION 1. Chapter 35-20 of the General Laws entitled "Public Corporation Financial Integrity and Accountability" is hereby amended by adding thereto the following section:

{ADD 35-20-8. Financial Estimates for Public Corporations. -- ADD} {ADD Itemized estimates of the financial needs of each public corporation shall be submitted by each chairperson or chief executive officer of a public corporation to the governor through the budget officer of the department of administration. The budget officer shall also provide copies of the estimates to the house fiscal advisor and the senate fiscal advisor. ADD}

SECTION 2. This article shall take effect upon passage.

SECTION 1. The legislature recognizes that residential care and assisted living facilities are an important component of the long term care service system. These facilities provide housing, supervision, and personal care services in a residential setting to persons who need some assistance with activities of daily living or instrumental activities of daily living. The legislature further recognizes the need to increase access to such facilities by low income persons whose care needs are appropriate to the level of service provided by residential care and assisted living. To accomplish this purpose, the state supplemental security income benefit level for persons living in residential care and assisted living should be adjusted to more adequately reflect the cost of providing the service.

SECTION 2. Section 40-6-27 of the General Laws in Chapter 40-6 entitled "Public Assistance Act" is hereby amended to read as follows:

40-6-27. Supplemental security income. -- (a) (1) The director of the department is hereby authorized to enter into agreements on behalf of the state with the secretary of the department of health and human services or other appropriate federal officials, under the supplementary and security income (SSI) program established by title XVI of the Social Security Act, 42 U.S.C. section 1381 et seq., concerning the administration and determination of eligibility for SSI benefits for residents of this state, except as otherwise provided herein. The state's monthly share of supplementary assistance to the supplementary security income program effective January 1, 1993 shall be as follows:

Individual living alone:		$ 64.35
Individual living with others:		74.60
Couple living alone:		120.50
Couple living with others:		136.50
Individual living in state licensed
Residential care and assisted living facilities {DEL : DEL}
{DEL effective January 1, 1993		332.00 DEL}
{ADD effective October 1, 1998:		582.00 ADD}

(2) Individuals living in institutions shall receive a ten dollar ($10.00) per month personal needs allowance from the state which shall be in addition to the personal needs allowance allowed by the Social Security Act, 42 U.S.C. section 301 et seq.

{ADD (3) Individuals living in state licensed residential care and assisted living facilities who are receiving SSI shall be allowed to retain a minimum personal needs allowance of fifty-five dollars ($55.00) per month from their SSI monthly benefit prior to payment of the residential care and assisted living facility monthly fee. ADD}

{ADD (4) The department is authorized and directed to establish rules for screening and assessment procedures and eligibility criteria for those persons who: ADD}

{ADD (i) Have applied for or are receiving SSI, and who apply for admission to residential care and assisted living facilities on or after October 1, 1998; or ADD}

{ADD (ii) Who are residing in residential care and assisted living facilities, and who apply for or begin to receive SSI on or after October 1, 1998. ADD}

{ADD (5) The department shall collaborate with the Department of Elderly Affairs to design and implement the screening and assessment procedures as required in the above section. ADD}

(b) The department is authorized and directed to provide additional assistance to individuals eligible for SSI benefits for:

(1) Moving costs or other expenses as a result of an emergency of a catastrophic nature which is defined as a fire or natural disaster, and

(2) Lost or stolen SSI benefit checks or proceeds thereof, and

(3) Assistance payments to SSI eligible individuals in need because of the application of federal SSI regulations regarding estranged spouses; and the department shall provide such assistance in a form and amount which the department shall by regulation determine.

SECTION 3. This article shall take effect October 1, 1998.

SECTION 1. Chapter 42-64 of the General Laws entitled "Rhode Island Economic Development Corporation" is hereby amended by adding thereto the following section:

{ADD 42-64-13.1. Assistance to Urban Communities for Economic Revitalization -- ADD} {ADD Establishment of an Urban Business Incubator. -- There is hereby authorized, established, and created an urban business incubator to be located in an enterprise zone, as defined in chapter 42-64.3. The incubator shall be designed to foster the growth of business through a multi-tenant, mixed-use facility serving companies in a variety of industries including, but not limited to: services, distribution, light manufacturing, or technology-based businesses. The incubator shall provide a range of services designed to assist these new businesses, including, but not limited to: flexible leases, shared office equipment, use of common areas such as conference rooms, and will provide (directly or indirectly) easily accessible business management, training, financial, legal, accounting, and marketing services. For the purposes of this section "Urban" shall mean any community which exceeds two thousand (2000) persons per square mile as established by the most recent federal census. ADD}

{ADD The incubator shall be established as a non-business corporation, and shall have tax exempt status under US Internal Revenue Code section 501(c)(3), and shall have a independent board of directors. The board of directors, in consultation with the corporations shall adopt guidelines and performance measures for the purposes of operating and monitoring the incubator. ADD}

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

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 resource recovery corporation shall be thirty-two dollars ($32.00) per ton from {DEL July 1, 1997, and thereafter. DEL} {ADD July 1, 1998 to June 30, 1999. ADD}

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

SECTION 1. Section 35-17-1 of the General Laws in Chapter 35-17 entitled "Medical Assistance and Public Assistance Caseload Estimating Conferences" is hereby amended to read as follows:

35-17-1. Purpose and membership. -- (a) In order to provide for a more stable and accurate method of financial planning and budgeting, it is hereby declared the intention of the legislature that there be a procedure for the determination of official estimates of anticipated medical assistance {ADD expenditures ADD} and public assistance caseloads {DEL . DEL} {ADD , upon which the executive budget shall be based and for which appropriations by the general assembly shall be made. ADD}

(b) The state budget officer, the house fiscal advisor, and the senate fiscal advisor shall meet in regularly scheduled caseload estimating conferences (C.E.C.). These conferences shall be open public meetings.

(c) The chairpersonship of each regularly scheduled C.E.C. will rotate among the state budget officer, the house fiscal advisor, and the senate fiscal advisor, hereinafter referred to as principals. The schedule shall be arranged so that no chairperson shall preside over two (2) successive regularly scheduled conferences on the same subject.

(d) Representatives of all state agencies are to participate in all conferences for which their input is germane.

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

SECTION 1. Sections 35-16-1, 35-16-2, 35-16-3, and 35-16-5 of the General Laws in Chapter 35-16 entitled "Revenue Estimating Conferences" are hereby amended to read as follows:

35-16-1. Purpose and membership. -- (a) In order to provide for a more stable and accurate method of financial planning and budgeting and to facilitate the adoption of a balanced budget wherein appropriations and expenditures do not exceed anticipated revenues, as is required by the statutes and constitution of Rhode Island, it is hereby declared the intention of the legislature that there be a procedure for the determination of an official estimate of anticipated state revenues upon which the executive budget shall be based and beyond which appropriations by the legislature and expenditures by the state shall not exceed. {DEL It is further the intent of the legislature that there be a state budget development process wherein expenditure priorities can be established and knowledgeable spending decisions can be made and implemented which will result in a budget for programs and activities whereby the resources of the state are utilized in a manner such that the needs of the people of the state are properly served and, at the same time, those services are provided in the most efficient and effective of ways. DEL}

(b) The budget office, the house fiscal advisor, and the senate fiscal advisor shall meet in regularly scheduled consensus revenue estimating conferences (R.E.C). These conferences shall be open public meetings.

(c) The chairpersonship of each regularly scheduled R.E.C will rotate among the state budget officer, the house fiscal advisor, and the senate fiscal advisor, hereinafter referred to as principals. The schedule shall be arranged so that no chairperson shall preside over two (2) successive regularly scheduled conferences on the same subject.

(d) Representatives of all state agencies, including by way of illustration, and not by way of limitation, the division of taxation, department of transportation, department of business regulation, department of health, and the office of general treasurer and any other state agency or board responsible for a revenue source under consideration by the R.E.C., are to participate in all conferences for which their input is germane.

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

(b) The primary purpose of regularly scheduled conferences is to {ADD prepare economic forecasts and ADD} 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 R.E.C, 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.

35-16-3. Additional meetings. -- (a) Any time during a fiscal year that any principal feels that the recommendations of the revenue estimating conference are no longer valid, then that principal, with appropriate notice, may convene a revenue estimating conference. The principal requesting the additional conference shall be the chairperson for that conference.

(b) If at any time during a fiscal year any participant feels that the recommendations of the revenue estimating conference are no longer valid with respect to their revenue sources then that participant has a duty to and shall notify each of the principals. {DEL The state budget officer shall review the concerns of each participant and determine whether the problems are sufficient to request an additional conference. DEL}

35-16-5. Staff support for meetings. -- (a) The R.E.C. chairperson and his or her staff will be responsible for preparing and distributing work papers before each conference. Each participant and principal will be responsible for providing the chairperson with the appropriate materials for the work papers on a schedule determined by the chairperson. Failure to meet this schedule shall be grounds, at the chairperson's option, to delay the conference.

(b) Work papers will include a side by side comparison of the {DEL economic (U.S. and Rhode Island) and DEL} revenue scenarios advocated by each of the principals. This analysis and its side by side presentation will be completed in time to distribute to each R.E.C. party at least {DEL two (2) days DEL} {ADD one (1) full day ADD} prior to the scheduled meeting date.

(c) The principals may request each participant to provide the R.E.C. chairperson and the remaining principals an independent revenue estimate and supporting information for each revenue source under the responsibility of the participant's agency. This information should be provided on a schedule provided by the conference chairperson and will be included in the conference comparison report.

(d) The principals may request that each participant shall notify the R.E.C. chairperson of any prospective administrative changes contemplated by their respective agency which will affect the cash flow of any revenue source under consideration.

(e) For general revenue conferences, the principal {ADD s ADD} {DEL whose advocated forecast is determined to be most representative of the economic and revenue consensus adopted shall, with the concurrence of the remaining principals and prior to the end of the month of the conference, develop monthly revenue estimates consistent with the consensus quarterly or annual revenue estimates by source, and in the case of sales tax, by major category. In the event none of the economic and revenue scenarios advocated by the principals is deemed sufficient for this purpose, the conference must make quarterly estimates of appropriate economic variables and revenue receipts. DEL} {ADD shall adopt a consensus economic forecast upon which to base revenue estimates. The principals shall obtain the services of economists and economic forecast services as required for this purpose. The consensus economic forecast shall be available to each principal in a timely fashion for each principal to prepare revenue estimates. ADD}

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

SECTION 1. Section 46-22-18 of the General Laws in Chapter 46-22 entitled "Regulation of Boats" is hereby amended to read as follows:

46-22-18. Funds. -- {DEL(a) Except as provided in subsection (b) hereof all DEL} {ADD All ADD} money collected under the provisions of this chapter shall be paid into {DEL the general fund as general revenue. General revenue appropriations DEL} {ADD a restricted receipt account of the Department of Environmental Management to be ADD} made available {ADD andADD} shall be allocated, distributed and used {DELas follows:DEL}

{DEL(1) Subject to annual approval of the General Assembly, amounts DEL} {ADD Amounts ADD} sufficient to fully fund:

{DEL(i)DEL} {ADD (1) ADD}Expenses of the department of environmental management, incurred in the administration and enforcement of this chapter;

{DEL(ii)DEL} {ADD (2) ADD} Expenses of boating safety, boating safety services and programs, boating education, marine patrols, enforcement training programs, and promotion and publicity relating to boating and boating safety and equipment related to boating safety;

{DEL(iii)DEL} {ADD (3) ADD}Grants for the purpose set forth in subsection (a)(1)(ii) above;

{DEL(iv)DEL} {ADD (4) ADD} Maintenance and improvement of recreational {ADD , ADD} {ADD commercial ADD} and navigational facilities relating to boating safety; including, but not limited to, the installation, {ADD financing ADD} improvement, and maintenance of aids to navigation, and support facilities; and

{DEL(v)DEL} {ADD (5) ADD} Expenses incurred in cooperation with the government of the United States in boating and boating safety matters.

{ADD (6) To the extent otherwise authorized by the general laws, funding services to mariners. ADD}

{DEL (2) The money remaining after disbursements for department activities specified in subsection (a)(1), that are collected from in-state residents shall be paid annually to the cities and towns of the state in lieu of a property tax on motorboats. The portion of the total amount to be paid to each city and town each year under this subsection shall be determined in accordance with a formula under which each city and town shall receive a proportionate share of the total amount to be distributed under this subsection, the proportionate share to be determined by a ratio, the numerator of which shall be the total annual fees paid under section 46-22-4 with respect to motorboats registered to persons residing in such city or town, and the denominator of which shall be the total annual fees paid with respect to all motorboats registered in all cites and towns of the state. DEL}

{DEL (3) Fees generated from motorboats registered to nonresidents of Rhode Island shall be allocated, distributed and used in accordance with subdivision (1) of this subsection above. DEL}

{DEL (b) For fiscal year 1993, all money collected under the provisions of this chapter shall be allocated, distributed and used as follows: DEL}

{DEL (1) Subject to approval of the General Assembly, amounts sufficient to fully fund: DEL}

{DEL (i) Expenses of the department of environmental management incurred in the administration and enforcement of this chapter; DEL}

{DEL (ii) Expenses of boating safety, boating safety services and programs, boating education, marine patrols, enforcement training programs, promotion and publicity relating to boating and boating safety and equipment related to boating safety; DEL}

{DEL (iii) Grants for the purpose set forth in subsection (ii) above as well as grants to cities and towns for the purposes of the implementation and carrying out their harbor management plans; DEL}

{DEL (iv) Maintenance and improvement of recreational and navigational facilities relating to boating safety; including, but not limited to the installation, improvement and maintenance of aids to navigation, and support facilities; and DEL}

{DEL (v) Expenses incurred in cooperation with the government of the United States in boating and boating safety matters. DEL}

{DEL (2) The money remaining after disbursements for department activities specified in subdivision (1) of this subsection that are collected from in-state residents shall be paid annually to the cities and towns of the state in lieu of a property tax on motorboats. The portion of the total amount to be paid to each city and town each year under this subsection shall be determined in accordance with a formula under which each city and town shall receive a proportionate share of the total amount to be distributed under this subsection such proportionate share to be determined by a ratio, the numerator of which shall be the total annual fees paid under section 46-22-4 with respect to motorboats registered to persons residing in such city or town and the denominator of which shall be the total annual fees paid with respect to all motorboats registered in all cities and towns of the state. DEL}

{DEL (3) Fees generated from motorboats registered to non-residents of Rhode Island shall be allocated, distributed and used in accordance with subdivision (1) of this subsection above. DEL}

{DEL (4) From the money specified in subdivision (2) of this subsection, the town of Westerly shall annually receive a sum equal to the greater of eighty thousand dollars ($80,000) or the amount it would receive under the above formula; for that same period the town of New Shoreham shall annually receive a sum equal to the greater of twenty-two thousand nine hundred and sixty-eight dollars and fifty-one cents ($22,968.51) or the amount it would receive under the formula; and the Westerly fire district shall annually receive a sum equal to twenty-three hundred dollars ($2,300). Payments to cities and towns shall annually include these specified amounts, regardless of net allocations to cities and towns, after sufficient funds are allocated under subdivision (1) of this subsection above. DEL}

{DEL (c) All funds appropriated and payable to the cities and towns hereunder shall be paid to the cities and towns on or before June 15 of each year. DEL}

SECTION 2. This article shall take effect upon passage and shall be retroactive to July 1, 1997.

SECTION 1. Section 16-57-6.6 of the General Laws in Chapter 16-57 entitled "Higher Education Assistance Authority" is hereby amended to read as follows:

16-57-6.6. Exclusion from financial aid needs test. -- (a) Notwithstanding any other provision of this chapter or chapter 56 of this title, no moneys invested in the tuition savings program shall be considered to be an asset for purposes of determining an individual's eligibility for a need based grant, need based scholarship or need based work opportunity offered by {DEL this state or an educational institution in this state. DEL} {ADD the state under the provisions of chapter 56 of title 16. ADD}

SECTION 2. This Article shall take effect July 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);

More than twelve thousand pounds (12,000 lbs.), but not more than fourteen thousand pounds (14,000 lbs.), one hundred twenty-four dollars ($124);

More than fourteen thousand pounds (14,000 lbs.), but not more than sixteen thousand pounds (16,000 lbs.), one hundred forty dollars ($140);

More than sixteen thousand pounds (16,000 lbs.), but not more than eighteen thousand pounds (18,000 lbs.), one hundred fifty-eight dollars ($158);

More than eighteen thousand pounds (18,000 lbs.), but not more than twenty thousand pounds (20,000 lbs.), one hundred seventy-six dollars ($176);

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);

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);

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);

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 pounds (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, a registration certificate and registration plate shall be issued for each semi-trailer 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/c) 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 dollars ($3.00) from that sum shall be turned over to the department of education to assist in the payment of the cost of the motorcycle driver's 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).

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

(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).

(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.

(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.

SECTION 2. This Article shall take effect July 1, 1998.

SECTION 1. Section 46-12.9-5 of the General Laws in Chapter 46-12.9 entitled "Rhode Island Underground Storage Tank Financial Responsibility Act" is hereby amended to read as follows:

46-12.9-5. Purpose of fund. -- The purpose of the fund shall be to facilitate the clean-up of leaking underground storage tanks or underground storage tank systems, in order to protect the environment including drinking water supplies and public health. The fund shall provide reimbursement to responsible parties for the eligible costs, expenses and other obligations incurred by them as a result of release of petroleum from underground storage tanks or underground storage tank system as provided herein. Monies in the fund shall be dispensed only upon the order of the general treasurer or his or her designee for the following purposes, and only after the approval of the review board:

(1) Administrative expenses, personnel, expenses and miscellaneous costs directly related to the fund management incurred by the fund administrator and approved by the review board in carrying out fund activities; provided, however, that no more than five hundred and fifty thousand dollars ($550,000) shall be dispensed from the fund for administrative purposes during {DEL the DEL} fiscal year {DEL ; DEL} {ADD 1998. For fiscal year 1999, no more than three hundred and fifty thousand dollars ($350,000) shall be dispensed from the fund for administrative purposes; ADD}

(2) The fund shall pay not more than one million dollars ($1,000,000) of eligible costs, expenses and other obligations as defined in regulations promulgated hereunder and, as further defined in subsection (3) excluding legal costs and expenses, incurred by a responsible party as a result of a release of petroleum from an underground storage tank or underground storage tank system; provided, however, that a responsible party shall be responsible for the first twenty thousand dollars ($20,000) of said costs, expenses and other obligations excluding legal costs and expenses; and

(3) Costs, expenses and other obligations as shall be incurred by the responsible party for site investigation, site remediation or other corrective action activities ordered or directed by the department or voluntarily done by the responsible party; provided, however, that a responsible party must bear the financial responsibility set forth in subsection (2) of this section; and

(4) Reimbursement for any third party claim including, but not limited to, claims for bodily injury, property damage and damage to natural resources which are asserted against a responsible party and which have arisen as a result of a release of petroleum from an underground storage tank or underground storage tank system in an amount not to exceed one million dollars ($1,000,000) for each release as set forth in subsection (2) of this section; provided, that such claims are found by the review board to be justified, reasonable, related to the release of petroleum and not excessive or spurious in nature; and

(5) Costs, expenses or obligations incurred by the department in carrying out the investigative, remedial and corrective action activities at sites of a petroleum release associated with an underground storage tank or underground storage tank system where the responsible party fails to comply with an order of the department to take such corrective action. In the event of such failure, the department may access the fund to perform the ordered work and shall proceed to recover from the responsible party on behalf of the fund any amount expended from the fund by the department including expenses of not more than twenty thousand dollars ($20,000).

(6) Nothing contained in this chapter shall be construed to prevent subrogation by the state of Rhode Island against any responsible party other than the owner and/or operator for all sums of money which the fund shall be obligated to pay hereunder plus reasonable attorneys' fees and costs of litigation and such right of subrogation is hereby created.

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

SECTION 1. Sections 44-33-2.1 and 44-33-9 of the General Laws in Chapter 44-33 entitled "Property Tax Relief" are hereby amended to read as follows:

44-33-2.1 Property tax relief -- Limitation. [Effective July 1, 1998.]

(A) Appropriations from the general fund for property tax relief provided by this chapter shall be in the amount of {DEL three million dollars ($3,000,000) DEL} {ADD six million dollars ($6,000,000) ADD} for fiscal year 1998-1999 and for each subsequent fiscal year.

(B) A claimant sixty-five (65) years of age or older, and/or disabled during any portion of the year for which the claim was filed shall be paid in full upon receipt of his/her claim for relief under this chapter.

(C) The tax administrator shall not pay any claims to claimants who were under sixty-five (65) years of age or not disabled on the last day of the taxable year for which the claim is made until the total amount of all timely-filed claims has been paid under subsection (B) of this section. Such balance shall be determined as of June 30 annually less the sum of fifty thousand dollars ($50,000) annually for payment of late-filed claims approved by the tax administrator under section 44-33-18.

(D) If insufficient funds exist as of June 30 annually to pay the full amount of all claims of persons under sixty-five (65) years of age and/or not disabled on the last day of the taxable year for which the claim is made, the tax administrator shall make payments to each such claimant proportionately. No payment shall exceed one hundred percent (100%) of the amount of the claim.

(E) Late-filed claims approved under section 44-33-18 for claimants sixty-five (65) years of age or older and/or disabled shall be paid in full upon receipt of his/her claim for relief under this chapter. Late-filed claims approved under section 44-33-18 for claimants under sixty-five (65) years of age and/or not disabled shall be paid at the same percentage as determined under subsection (D).

44-33-9. Computation of credit. -- The amount of any claim made pursuant to this chapter shall be determined as follows:

(1) For any taxable year, a claimant shall be entitled to a credit against his or her tax liability equal to the amount by which the property taxes accrued or rent constituting property taxes accrued upon the claimant's homestead for the taxable year exceeds a certain percentage of the claimant's total household income for that taxable year, which percentage is based upon income level and household size. The credit shall be computed in accordance with the following table. Income Range

Income Range	1 Person	2 or More Persons
less than $6000	3%	3%
$6001-9000	4%	4%
$9001-12000	5%	5%
$12001-15000	6%	5%
{DEL $15001-18000 DEL} {ADD $15001-25000 ADD}	6%	6%

(2) The maximum amount of the credit granted under this chapter will be as follows:

Year	CreditMaximum
Commencing July 1977	$ 55.00
Commencing July 1978	$150.00
Commencing July 1979	$175.00
Commencing July 1980	$200.00
Commencingon July 1997	$250.00
and subsequent years

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

SECTION 1. Sections 44-25-1 and 44-25-4.1 of the General Laws in Chapter 44-25 entitled "Real Estate Conveyance Tax" are hereby amended to read as follows:

44-25-1. Tax imposed -- Payment -- Burden. -- (a) There is hereby imposed, on each deed, instrument, or writing by which any lands, tenements, or other realty sold shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or her or their direction, when the consideration paid exceeds one hundred dollars ($100), a tax at the rate of one dollar and forty cents ($1.40) for each five hundred dollars ($500) or fractional part thereof which is paid for the purchase of the property (inclusive of the value of any lien or encumbrance remaining thereon at the time of sale), which tax shall be payable at the time of making, execution, delivery, acceptance or presenting for recording of the instrument. In the absence of an agreement to the contrary, the tax shall be paid by the grantor.

(b) In the event no consideration is actually paid for the lands, tenements, or realty, the instrument of conveyance shall contain a statement to the effect that the consideration is such that no documentary stamps are required.

{ADD (c) The tax administrator shall contribute to the distressed community relief program the sum of thirty cents ($.30) per one dollar and forty cents ($1.40) of the face value of such stamps to be distributed pursuant to section 45-13-12. The balance of the tax shall be retained by the municipality collecting the tax. ADD}

44-25-4.1. Hand stamps. -- {DEL (a) DEL} In lieu of the affixing of a documentary stamp or stamps to every original instrument, the tax administrator may authorize and approve the use of a hand stamp to be used as a means of evidencing the payment of the tax imposed by this chapter. Where the use of a hand stamp is authorized, the recorder of deeds or clerks shall affix upon the face of each original instrument, by hand stamp issued by the tax administrator, a receipt clearly showing the amount of tax so paid by the person making, executing, delivering, or presenting for recording the original instrument.

{DEL (b) Whenever a hand stamp is authorized and used, the provisions of section 44-25-4(b) and (c) shall apply to the hand stamp. DEL}

SECTION 2. Section 44-25-4 of the General Laws in Chapter 44-25 entitled "Real Estate Conveyance Tax" is hereby repealed.

{DEL 44-25-4. Furnishing stamps -- Sale -- Agents -- Compensation -- Bond premiums. -- DEL} {DEL (a) The tax administrator shall prescribe, prepare, and furnish stamps, of such denominations and quantities as may be necessary, for the payment of the tax imposed and assessed by this chapter. The tax administrator shall make provisions, including the use of metering machines, if deemed expedient by the administrator, for the sale of the stamps in such places as the administrator may deem necessary. DEL}

{DEL (b) The tax administrator may appoint the recorder of deeds or clerks in each city or town and other persons within or without the state, as agents, for the sale of stamps to be used in paying the tax herein imposed upon instruments and may allow a commission to said agents of twenty-five cents (25 cents) per one dollar and forty cents ($1.40) of the face value of the stamps. The commissions allowed to a recorder of deeds or clerks shall be turned over to the treasurer of the city or town in which the tax is collected, for the use of the city or town. DEL}

{DEL (c) The tax administrator shall contribute to the distressed communities relief program the sum of thirty cents ($.30) per one dollar and forty cents ($1.40) of the face value of such stamps, to be distributed pursuant to section 45-13-12. DEL}

{DEL (d) The tax administrator shall pay the premium on any bond required by the tax administrator to be procured by any agent for the performance of his or her duties under this chapter. DEL}

SECTION 3. This article shall take effect July 1, 1998.

SECTION 1. Section 35-3-25 of the General Laws in Chapter 35-3 entitled "State Budget" is hereby amended to read as follows:

35-3-25. {DEL Enumeration of restricted receipt accounts and debts service charges. DEL} {ADD -- Enumeration of restricted receipt, general revenue, and federal receipt accounts and debts service charges. ADD} -- The appropriations section in each budget bill for any fiscal year shall enumerate for each program and department all restricted receipt account appropriations, all general revenue appropriations, and all federal receipt appropriations, such that total general fund expenditures are listed for each program or agency or department {DEL . DEL} {ADD except debt service charges. For this purpose, all debt service charges shall be enumerated as a program within the Department of Administration. ADD}

SECTION 2. Sections 35-8-3, 35-8-6, 35-8-9 and 35-8-11 of the General Laws in Chapter 35-8 entitled "Bonded Indebtedness of State" are hereby amended to read as follows:

35-8-3. Sinking fund commission -- Composition -- Elective members -- Quorum. -- There shall be a sinking fund commission which shall perform the duties formerly performed by the board of commissioners of sinking funds as prescribed by this chapter, which board of commissioners is hereby abolished. The sinking fund commission shall consist of the governor, the general treasurer, the director of administration, the chairperson of the finance committee of the senate, the chairperson of the finance committee of the house of representatives, and {DEL two (2) persons to be elected by the general assembly in grand committee, one of whom shall be elected at the January session in each year to succeed the member of the commission whose term will next expire. The person so elected shall hold his or her office until the first day of February in the second year after his or her election. In case of a vacancy in the commission, the vacancy shall be filled, if the general assembly is in session, by the grand committee; otherwise by appointment by the governor until the next session of the general assembly, when an election shall be held to fill the vacancy as soon as may be; and the person so elected shall hold his or her office for the remainder of the term. DEL} {ADD one (1) persons to be appointed by the Speaker of the House of Representatives one (1) person to be appointed by the House Minority Leader, one (1) person to be appointed by the Senate Majority Leader, and one (1) person to be appointed by the Senate Minority Leader. ADD} A majority of all the members of the commission shall be necessary to constitute a quorum thereof.

35-8-6. Control and management of sinking funds -- Investment. -- The sinking fund commission shall have the control and management of all sinking funds established for the redemption of any bonds or certificates of indebtedness issued by the state, except for investments which are made by the state investment commission under the provisions of chapter 10 of this title. Any and all bonds or certificates of indebtedness of the state purchased as an investment for the sinking fund for the redemption of bonds of the same issue shall be held in the sinking fund subject to the order of the commission or until the bonds shall by their terms become due and payable. {ADD For the purposes of this section, refunding escrows established by the state in connection with the refinancing of any bonds, notes or certificates of indebtedness including, without limitation, refunding escrows established in connection with the refinancing of any certificates of participation issued by or at the direction of the state, shall not constitute sinking funds established for the redemption of any bonds or certificates of indebtedness issued by the state. ADD}

35-8-9. Records and annual report of sinking fund commission. -- The sinking fund commission shall keep a full record of its meetings and proceedings. The commission shall make a full report in writing to the general assembly on or before the tenth day of January in each year, showing respectively the conditions and manner of the investments of the sinking fund or sinking funds on the thirtieth day of June preceding; {ADD the estimated savings from the commission's refinancing of debt in the prior fiscal year, the estimated total debt service payments of the debt retired by the commission in the prior fiscal year, ADD} and shall in the report certify that the various investment securities in the sinking funds have been examined by the director of administration.

35-8-11. Payments into sinking funds. -- {DEL The general treasurer shall annually, on the anniversary of the date of each issue of all outstanding state bonds, pay to the sinking fund commission for the redemption of the bonds an amount sufficient to meet the sinking fund requirements of the bonds, computed upon the basis that the moneys and investments of the general sinking fund will earn an anticipated income of four percent (4%) per annum, compounded semiannually, and the controller shall draw his or her orders upon the general treasurer for those payments in accordance with the provisions of this section and section 35-8-12, upon receipt by him or her of proper vouchers approved by the general treasurer DEL}. {ADD In fiscal year 2000, and each subsequent fiscal year, there shall be appropriated a sum at least equal to the total of the following: the sinking fund commission's estimate of savings generated for that fiscal year from the commission's prior fiscal year's refinancing of debt; the sinking fund commission's estimate of the total debt service payments, principal and interest, of the debt retired by the commission in prior fiscal year; and the total interest generated by the proceeds of general obligation bonds, net of the arbitrage rebate for that year, as estimated by the Revenue Estimating Conference. Payments into the sinking fund shall also include those received pursuant to section 42-116-25 which shall not be subject to annual appropriation. ADD}

SECTION 3. Chapter 35-8 of the General Laws entitled "Bonded Indebtedness of the State" is hereby amended by adding thereto the following sections:

{ADD 35-8-6.1. Exclusion from sinking fund commission authority. -- ADD} {ADD Notwithstanding any general law or special law to the contrary, the sinking fund commission shall have no authority to take or cause to be taken any action or actions that would adversely affect the exclusion from income taxation of interest on any bonds, notes or certificates of indebtedness, including without limitation the interest portion of any certificates of participation issued by or at the direction of the state. ADD}

{ADD 35-8-10.1. Expenses of sinking fund commission. -- ADD} {ADDThe commission may incur reasonable expenses in the fulfillment of its duties, including but not limited to bond counsel and financial advisement. These expenses shall be paid out of the commission's annual appropriation. ADD}

SECTION 4. Section 42-116-25 of the General Laws in Chapter 42-116 entitled "Rhode Island Depositors Economic Protection Corporation" is hereby amended to read as follows:

42-116-25. Duration of corporation -- Termination. -- The corporation and its corporate existence shall continue until it is dissolved in accordance with procedures contained in sections 7-6-50 through 7-6-55 after its board of directors has determined that the purposes for which it has been created have been substantially fulfilled; provided, however, that no dissolution shall take effect so long as the corporation shall have bonds outstanding unless adequate provision has been made for the payment or satisfaction thereof or unless there is a consent to a dissolution by duly authorized action of the holders of such bonds or their trustee or other authorized representative. Notwithstanding any provisions to the contrary in sections 7-6-50 --7-6-55, upon termination of the corporation, title to all funds and other properties owned by it which remain after provision for the payment or satisfaction of all bonds, certificates of indebtedness, promissory notes, and other obligations of the corporation {ADD shall be transferred to and ADD} shall vest in the {DEL state. DEL} {ADD sinking fund as provided in chapter 35-8 of the general laws. Net proceeds, after expenses, arising from any assets and legal settlements that have reverted to the sinking fund shall be deposited into the sinking fund as provided in chapter 35-8 of the general laws. ADD}

SECTION 5. This article shall take effect July 1, 1998.

SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is hereby amended by adding thereto the following section:

{ADD 44-3-29.1. Wholesale and retail inventory tax phase out. -- ADD} {ADD (a) Beginning July 1, 1999, the city council or town council of any municipality shall by ordinance phase out, over a ten (10) year period, the stock in trade or inventory tax of wholesalers and retailers. The rate schedule to be implemented by the cities and towns is set forth in this section. ADD}

{ADD (b) The terms "inventory", as it refers to wholesalers, "stock in trade", as it refers to wholesalers, and "wholesaler" shall have the same meaning as defined in section 44-3-29. ADD}

{ADD (c) The terms "inventory", as it refers to retailers, "stock in trade", as it refers to retailers, and "retailer" shall have the same meaning as defined in section 44-3-40. ADD}

{ADD (d) The rate schedule for the ten (10) year phase out of the wholesale and retail inventory tax shall be as follows: ADD}

{ADD yearADD}	{ADD maximum tax rate ADD}
{ADD FY 1999ADD}	{ADDset by local officials ADD}
{ADD FY 2000ADD}	{ADD ninety percent (90%) of FY 1999 rate ADD}
{ADD FY 2001ADD}	{ADD eighty percent (80%) of FY 1999 rate ADD}
{ADD FY 2002ADD}	{ADDseventy percent (70%) of FY 1999 rate ADD}
{ADD FY 2003ADD}	{ADDsixty percent (60%) of FY 1999 rate ADD}
{ADD FY 2004ADD}	{ADD fifty percent (50%) of FY 1999 rate ADD}
{ADD FY 2005ADD}	{ADDforty percent (40%) of FY 1999 rate ADD}
{ADD FY 2006ADD}	{ADDthirty percent (30%) of FY 1999 rate ADD}
{ADD FY 2007ADD}	{ADD twenty percent (20%) of FY 1999 rate ADD}
{ADD FY 2008ADD}	{ADD ten percent (10%) of FY 1999 rate ADD}
{ADD FY 2009ADD}	{ADD no tax authorized ADD}

{ADD (e) In the event that a wholesaler sold inventory or stock in trade both at wholesale ADD} {ADD and at retail in the preceding calendar year, the tax assessor of the municipality shall assess on the same basis as a retailer's inventory or stock in trade as of December 31 of that year, to the extent permitted by applicable law, notwithstanding any freeze of assessed valuation or exemption permitted pursuant to section 44-5-12 (c), that proportion of inventory or stock in trade of the wholesaler which shall be equal to the percentage of the wholesaler's total sales during the preceding calendar year that were at retail. For the purposes of this paragraph, sales at retail shall not include sales to employees of the wholesaler or to employees of its affiliates. If retail sales are less than one percent (1%) of total sales during the year, it shall be deemed that no sales were made at retail during the year. All sales of a wholesaler to a customer which is an affiliated entity shall be deemed to be retail sales for the purposes of this subsection if more than half of the dollar volume of the sales of the affiliated entity is made within the municipality. ADD}

{ADD (f) For purposes of this section, a wholesaler shall be considered affiliated with customers if it controls, or is under common control with the customers. ADD}

{ADD (g) In the event that a wholesaler or retailer subject to the inventory tax commences operations in a particular city or town after fiscal year 1999, the tax assessor for that municipality shall determine what would have been the value of the inventory as of December 1998, adjusting the inventory value to fiscal year 1999 using the changes in the consumer price index - all urban consumers (CPI-U) published by the bureau of labor statistics of the United States department of labor. The director of the Department of Administration shall publish annually an adjustment schedule. ADD}

{ADD (h) This section shall also apply to automobile dealers, as defined in section 31-5 -5. ADD}

{ADD (i) The assent of two-thirds (2/3) of the members elected to each house of the general assembly shall be required to repeal or amend this section. ADD}

SECTION 2. Section 44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and Assessment of Local Taxes" is hereby amended to read as follows:

44-5-12. Assessment at full and fair cash value. -- (a) All property {DEL liable DEL} {ADD subject ADD} to taxation shall be assessed at its full and fair cash value, or at a uniform percentage thereof, not to exceed one hundred percent (100%), to be determined by the assessors in each town or city: provided, however, that any residential property encumbered by a covenant recorded in the land records in favor of a governmental unit or Rhode Island housing and mortgage finance corporation restricting either or both the rents that may be charged or the incomes of the occupants shall be assessed and taxed in accordance with section 44-5-13.10 hereof: provided, however, that in assessing real estate which is classified as farm land, forest, or open space land in accordance with chapter 27 of this title the assessors shall consider no factors in determining the full and fair cash value of the real estate other than those which relate to such a use without regard to neighborhood land use of a more intensive nature, provided, however, the city council of the city of Warwick is hereby authorized to provide by ordinance that the owner of any dwelling of one to three (3) family units in the city of Warwick who makes any improvements or additions on his or her principal place of residence in the amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the city of Warwick, shall be exempt from reassessment of property taxes on such improvement or addition until the next general citywide re-evaluation of property values by the tax assessor. For the purposes of this section, "residence" shall be defined as voting address. This exemption shall not apply to any commercial structure. The property owner shall supply all necessary plans to the building official for such improvements or addition and shall pay all requisite building and other permitting fees as now are required by law, and provided further, however, that the city council of the city of Central Falls is hereby authorized to provide by ordinance that the owner of any dwelling of one (1) to eight (8) units who makes any improvements or additions to his or her residential or rental property in an amount not to exceed twenty thousand dollars ($20,000) as determined by the tax assessor of the city of Central Falls shall be exempt from reassessment of property taxes on the improvement or addition until the next general citywide reevaluation of property values by the tax assessor. The property owner shall supply all necessary plans to the building official for the improvements or additions and shall pay all requisite building and other permitting fees as are now required by law.

(b) Municipalities shall make available to every land owner whose property is taxed under the provisions of this section a document which may be signed before a notary public containing language to the effect that they are aware of the additional taxes imposed by the provisions of section 44-5-39 in the event that they use land classified as farm, forest, or open space land for another purpose.

{ADD (c) Pursuant to the provisions of section 44-3-29.1, all wholesale and retail inventory subject to taxation shall be assessed at its full and fair cash value, or at a uniform percentage thereof, not to exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each town and city. Once the fiscal year 1999 value of the inventory has been assessed, this value shall not increase. The phase-out rate schedule set forth in section 44-3-29.1(d) shall apply to this fixed value in each year of the phase-out. ADD}

SECTION 3. Section 45-13-1 of the General Laws in Chapter 45-13 entitled "State Aid" is hereby amended to read as follows:

45-13-1. Apportionment of annual appropriation for state aid. -- (a) As used in this chapter, the following words and terms shall have the following meanings:

(1) "Population" shall mean the most recent estimates of population for each city and town as reported by the United States department of commerce, bureau of the census.

(2) "Income" shall mean the most recent estimate of per-capita income for a city, town or county as reported by the United States department of commerce, bureau of the census.

(3) "Tax effort" shall mean the total taxes imposed by a city or town for public purposes or the totals of those taxes for the cities or towns within a county (except employee and employer assessments and contributions to finance retirement and social insurance systems and other special assessments for capital outlay) determined by the United States secretary of commerce for general statistical purposes and adjusted to exclude amounts properly allocated to education expenses.

(4) "Reference year" shall be the second fiscal year preceding the beginning of the fiscal year in which the distribution of state aid to cities and towns is made.

(b) Aid to cities and towns shall be apportioned as follows: For each county, city or town, let R be the tax effort divided by the square of per capita income, i.e., R = (tax effort)/(income x income).

The amount to be allocated to the counties shall be apportioned in the ratio of the value of R for each county divided by the sum of the values of R for all five (5) counties.

The amount to be allocated for all cities and for all towns within a county shall be the allocation for that county apportioned proportionally to the total tax effort of the cities in that county and the total tax effort of the towns in that county.

The amount to be allocated to any city (or town) is the amount allocated to all cities (or all towns) within the county apportioned in the ratio of the value of R for that city (or town) divided by the sum of the values of R for all cities (or all towns) in that county. Provided further that no city or town shall receive an entitlement in excess of one hundred forty-five percent (145%) of that city or town's population multiplied by the average per capita statewide amount of the annual appropriation for state aid to cities and towns. Any excess entitlement shall be allocated to the remainder of the cities and towns in the respective county in accordance with the provisions of this section.

(c) The total amount of aid to be apportioned pursuant to (b) above shall be specified in the annual appropriation act of the state {DEL . DEL} {ADD and shall be equal to the following: ADD}

( {ADD i) For fiscal years ending June 30, 1994 through June 30, 1998, the total amount of such aid shall be based upon one percent (1%) of total state tax revenues in the reference year. ADD}

{ADD (ii) For the fiscal year ending June 30, 1999, the total amount of such aid shall be based upon one and three-tenths percent (1.3%) of total state tax revenues in the reference year. ADD}

{ADD (iii) For the fiscal year ending June 30, 2000, the total amount of such aid shall be based upon one and seven-tenths percent (1.7%) of total state tax revenues in the reference year. ADD}

{ADD (iv) For the fiscal year ending June 30, 2001, the total amount of such aid shall be based upon two percent (2.0%) of total state tax revenues in the reference year. ADD}

{ADD (v) For the fiscal year ending June 30, 2002, the total amount of such aid shall be based upon two and four-tenths percent (2.4%) of total state tax revenues in the reference year. ADD}

{ADD (vi) For the fiscal year ending June 30, 2003, the total amount of such aid shall be based upon two and seven-tenths percent (2.7%) of total state tax revenues in the reference year. ADD}

{ADD (vii) For the fiscal year ending June 30, 2004, the total amount of such aid shall be based upon three percent (3.0%) of total state tax revenues in the reference year. ADD}

{ADD (viii) For the fiscal year ending June 30, 2005, the total amount of such aid shall be based upon three and four-tenths percent (3.4%) of total state tax revenues in the reference year. ADD}

{ADD (ix) For the fiscal year ending June 30, 2006, the total amount of such aid shall be based upon three and seven-tenths percent (3.7%) of total state tax revenues in the reference year. ADD}

{ADD (x) For the fiscal year ending June 30, 2007, the total amount of such aid shall be based upon four and one-tenths percent (4.1%) of total state tax revenues in the reference year. ADD}

{ADD (xi) For the fiscal year ending June 30, 2008, the total amount of such aid shall be based upon four and four-tenths percent (4.4%) of total state tax revenues in the reference year. ADD}

{ADD (xii) For the fiscal year ending June 30, 2009, the total amount of such aid shall be based upon four and seven-tenths percent (4.7%) of total state tax revenues in the reference year. ADD}

{DEL (d) For the fiscal year ending June 30, 1994 and thereafter, the total amount of such aid shall be based upon at least one percent (1%) of total state tax revenues in the reference year. DEL}

{ADD (e) The assent of two- thirds (2/3) of the members elected to each house of the general assembly shall be required to repeal or amend this section. ADD}

SECTION 4. This article shall take effect upon passage.

SECTION 1. Section 31-3-3 of the General Laws in Chapter 31-3 entitled "Registration of Vehicles" is hereby amended to read as follows:

31-3-3. Application for registration. -- Every owner of a vehicle subject to registration hereunder shall make application to the registry for the registration thereof upon the appropriate form or forms furnished by the registry and every such application shall bear the signature of the owner written with pen and ink. The signature shall be acknowledged by the owner before a person authorized to administer oaths and the application shall contain:

(a) The name, city or town of bona fide residence, actual residence address and mail address of the owner {DEL , DEL} {ADD as appearing on the owner's motor vehicle operator's license or state identification card issued pursuant to the provisions of chapter 3-8, ADD} or business address of the owner if a firm, association, or {ADD if a ADD} corporation {DEL and DEL} {ADD , ADD} the name of the city or town in which the vehicle is physically and primarily housed. For purposes of this section "physically and primarily housed" shall be defined as that city or town in which the vehicle is housed for a period or periods of time greater than in any other city or town in the state of Rhode Island. {ADD The registry may substitute other indicators of residence when necessary. ADD}

(b) A description of the vehicle including, insofar as the hereinafter specified data may exist with respect to a given vehicle, the make, model, type of body, the number of cylinders, the serial number of the vehicle, and the engine or other number of the vehicle. In the event a vehicle is designed, constructed, converted, or rebuilt for the transportation of property, the application shall include a statement of its capacity in terms of maximum gross vehicle weight rating as authorized by the manufacturer of the chassis or the complete vehicle.

(c) A statement whether liability insurance is carried on said vehicle, and, if there is such liability insurance, the name of the carrier, policy number and effective dates thereof.

(d) Such further information as may reasonably be required by the registry to enable it to determine whether the vehicle is lawfully entitled to registration.

(e) The exact mileage reading from the motor vehicle on the date of application.

SECTION 2. Sections 44-34-2 and 44-34-11 of the General Laws in Chapter 44-34 entitled "Excise on Motor Vehicles and Trailers" are hereby amended to read as follows:

44-34-2. Assessment -- Valuation -- Proration -- Abatement and cancellation -- Exemptions from tax. -- (a) Except as hereinafter provided, the tax assessors of each city and town shall assess and levy in each calendar year on every vehicle and trailer registered under chapter 3 of title 31 for the privilege of the registration, an excise measured by the value thereof, as hereinafter defined and determined. For the purpose of this excise, the uniform value of each vehicle shall be determined in accordance with the regulations of the vehicle {DEL valuation DEL} {ADD value ADD} commission. Provided, that any vehicle which is more than twenty-five (25) years old, whether or not the vehicle is an antique motor car as defined in section 31-1-3(f), shall be deemed to possess an average retail value of five hundred dollars ($500.00). Provided further, that any vehicle more than twenty-five (25) years old on June 16, 1987, whether or not the same is an antique motor car as defined in section 31-1-3(f), shall be deemed to have an average retail value of five hundred dollars ($500.00) or its actual retail value whichever is less. Provided, further the minimum excise tax on any vehicle, if registered to the same owner for a full year or portion thereof, shall be not less than five dollars ($5.00) unless the registration is transferred to one or more additional vehicles or trailers, in which case the minimum or combined excise taxes shall be not less than five dollars ($5.00).

(b) Vehicle and trailer excises shall be prorated over the calendar year prior to the year in which the excises are levied and billed, that year hereinafter being referred to as the calendar year of proration.

(c) The excise levy on every vehicle and trailer registered under chapter 3 of title 31 shall be based on the ratio that the number of days the vehicle or trailer is registered is to the number of days in the calendar year of proration.

(d) If during the calendar year of proration, the owner of a vehicle or trailer subject to the excise moves permanently with his or her vehicle to another state and cancels his or her registration in this state and returns the registration plates, the vehicle shall be exempt from excise for the ensuing year.

(e) "Year of manufacture" as used in this section means the year used by the manufacturer of the vehicle or trailer in connection with the designation by the manufacturer of the model of the vehicle or trailer. Where the presumptive price of a vehicle or trailer is not readily obtainable, or special equipment is installed on the vehicle or trailer, the tax assessor shall prescribe the retail price to be used or the manner in which the retail price shall be determined.

(f) Nothing in this section shall be construed to prevent the city council of any city or the town council of any town from granting an abatement, in whole or in part, when there is an error in the assessment of a tax, and the tax assessors have certified to the fact in writing to the city or town council to cancel taxes setting forth the nature of the error, the valuation of the vehicle or trailer, the amount of the tax assessed and the name of the person to whom the vehicle or trailer was taxed.

(g) The city or town council may cancel, in whole or in part, an excise tax assessed to a person who has died leaving no estate, or a person who has moved from the state, and the tax collector or person acting in the capacity of tax collector certifies to the city or town council the facts of the case.

(h) The excise imposed by this section shall not apply to vehicles or trailers owned by the state of Rhode Island or any political subdivision thereof, or to vehicles or trailers owned by a corporation, association or other organization whose tangible personal property is exempt under section 44-3-3(1) -- (15), or to vehicles assessed and taxed under section 44-13-13, or those owned by the United States government. Farm vehicles shall be exempt to the extent prescribed in section 44-5-42.

44-34-11. Rhode Island vehicle value commission. -- (a) There is hereby created the "Rhode Island vehicle value commission" to establish presumptive values of vehicles and trailers subject to the excise tax.

(b) The commission shall consist of the following nine (9) members: one designee of the director of transportation; five (5) local tax officials named by the governor, at least one of whom shall be from a town under ten thousand (10,000) population and at least one of whom shall be from a city over fifty thousand (50,000) population, from a list of {DEL at least ten (10) DEL} nominees submitted by the president of the Rhode Island league of cities and towns; and two (2) designees who are private citizen car owners, one of whom shall be named by the speaker of the house and one of whom shall be named by the senate majority leader; and one motor vehicle dealer designated by the director of {DEL transportation; DEL} {ADD administration; ADD} all departmental designees shall serve at the pleasure of the designating agency, but, for a term of no less than one year, and all other designees shall serve for a term of three (3) years.

(c) The commission shall annually determine the presumptive values of vehicles and trailers subject to the excise tax in the following manner:

(1) Not earlier than September 30 and not later than December 31 of each year the commission shall by rule adopt a methodology for determining the presumptive value of vehicles and trailers subject to the excise tax which shall give due consideration to the following factors:

(i) The average retail price {DEL in Rhode Island DEL} of similar vehicles of the same make, model, type, and year of manufacture as reported by motor vehicle dealers {DEL and DEL} {ADD or ADD} by official used car guides, such as that of the national automobile dealers association for New England {DEL ; DEL} {ADD . Where such regional guides are not available, the commission shall use other publications deemed appropriate; and ADD}

{DEL (ii) Retail sales prices determined for Rhode Island state sales tax purposes; DEL}

{DEL (iii) Rhode Island retail sales prices as advertised in newspapers; and DEL}

{DEL (iv) DEL} {ADD (ii) ADD} Such other information concerning the average retail prices for make, model, type, and year of manufacture of motor vehicles as the director and the Rhode Island vehicle value commission may deem appropriate to determine fair values.

(2) On or before February 1 of each year, it shall adopt a list of values for vehicles and trailers of the same make, model, type, and year of manufacture as of the preceding December 31 in accordance with the methodology adopted between September 30 and December 31; the list shall be subject to a public hearing at least five (5) business days prior to the date of its adoption.

(3) Nothing herein shall be deemed to require the commission to determine the presumptive value of vehicles and trailers which are unique, to which special equipment has been added or to which special modifications have been made, or for which adequate information is not available from the sources referenced in subdivision (1) of this subsection, provided however, the commission may consider those factors in its lists or regulations.

(4) The commission shall annually provide the list of presumptive values of vehicles and trailers to each tax assessor on or before February 15 of each year.

(d) The commission shall adopt rules governing its organization and the conduct of its business; prior to the adoption of the rules, the designee of the department of {DEL transportation DEL} {ADD administration ADD} shall serve as chairperson of the commission and shall have the power to call meetings, and a simple majority of the members of the commission, as provided for in subsection (b) of this section, shall be necessary for a quorum, which quorum shall by majority vote have the power to conduct business in the name of the commission.

(e) The commission shall have the power to contract for such professional services as it deems necessary for the development of the methodology for determining presumptive values, for calculating presumptive values according to the methodology, and for preparing the list of presumptive values in a form and format that is generally usable by cities and towns in their preparation of tax bills. The commission shall also have the power to incur such expenses as are reasonable in the conduct of its business as required by this chapter and to authorize payments for the same.

(f) Compensation for members for attendance at meetings shall initially be at a rate of fifty dollars ($50.00) per meeting unless otherwise determined by the unclassified pay board.

(g) The commission shall respond to petitions of appeal by local boards of review in accordance with the provisions of section 44-34-9(a).

(h) The commission shall establish by rule, procedures for adopting an annual budget and for administering its finances. After July 1, 1986, one-half (1/2) of the cost of the commission's operations shall be borne by the state and one-half (1/2) shall be borne by cities and towns, within the state with the city and town share distributed among cities and towns on a per capita basis.

SECTION 3. Title 44 of the General Laws entitled "Taxation" is hereby amended by adding thereto the following chapter:

{ADD 44-34.1-1. Excise tax phase out. -- ADD} {ADD (a) Notwithstanding the provisions of chapter 34 of title 44 or any other provisions of the general laws to the contrary, the motor vehicle and trailer excise tax established by section 44-34-1 shall be phased out by the fiscal year 2005. The phase out shall apply to all motor vehicles and trailers, including leased vehicles. ADD}

{ADD (b) Pursuant to the provisions of this section, all motor vehicles shall be assessed a value by the vehicle value commission. Said value shall be assessed according to the provisions of section 44-34-11(c)(1). ADD}

{ADD (c)(1) The motor vehicle excise tax phase out shall commence with the excise tax bills mailed to taxpayers for the fiscal year 2000. The tax assessors of the various cities and towns and fire districts shall reduce the average retail value of each vehicle assessed by using the prorated exemptions from the following table: ADD}

{ADD year	Exempt from value ADD}
{ADD fiscal year 2000	$1,500 ADD}
{ADD fiscal year 2001	$2,500 ADD}
{ADD fiscal year 2002	$3,500 ADD}
{ADD fiscal year 2003	$8000 ADD}
{ADD fiscal year 2004	$10,000 ADD}
{ADD fiscal year 2005	$15,000 ADD}
{ADD fiscal year 2006	All vehicles ADD}

{ADD (2) The excise tax phase out shall provide increased levels of assessed value reductions until the tax is eliminated. ADD}

{ADD (3) Current exemptions shall remain in effect throughout the phase out period. ADD}

{ADD (4) The excise tax rates and ratios of assessment shall be fixed at fiscal year 1998 levels, and in no event shall the final taxable value of a vehicle be higher than assessed in the prior fiscal year. ADD}

{ADD 44-34.1-2. {DEL City and town reimbursement. -- DEL} {ADD City and town and fire district reimbursement. -- ADD} {ADD(a) During the vehicle excise tax phase out in fiscal years 2000 through 2006, cities and towns and fire districts shall receive advance reimbursements from state general revenues equal to the amount of lost tax revenue due to the phase out of the excise tax. Upon elimination of the tax and beginning in fiscal year 2006, cities and towns and fire districts shall receive a permanent distribution of sales tax revenue pursuant to section 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination. ADD}

{ADD (b) (1) The Director of Administration shall determine the amount of general revenues to be distributed to each city and town and fire district for the fiscal years 1999 through 2005 such that every city and town and fire district is held harmless from tax loss resulting from this act, assuming that tax rates are indexed to inflation. The Director of Administration shall index the tax rates for inflation by applying the annual change in the December consumer price index-all urban consumers (CPI-U), published by the Bureau of Labor Statistics of the United States Department of Labor, to the indexed tax rate used for the prior fiscal year calculation. The Director shall apply the following principles in determining reimbursements. ADD}

{ADD (i) Exemptions granted by cities and towns and fire districts in the fiscal year 1998 must be applied to assessed values prior to applying the exemptions in section 44-34.1-1(c)(1). Cities and towns and fire districts will not be reimbursed for these exemptions. ADD}

{ADD (ii) No city or town or fire district shall be reimbursed for more than would have been levied had the exemptions contained in section 44-34.1-1(c)(1) not been applied, and the average retail prices determined by the Rhode Island Vehicle Value Commission been set as the average retail price in Rhode Island using retail sales prices determined for Rhode Island state sales tax purposes as they had been for fiscal year 1999, prior to the passage of this act. ADD}

{ADD (iii) Inflation reimbursements shall be the difference between: ADD}

{ADD (a) The levy calculated at the tax rate used by each city and town and fire district for fiscal year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions contained in section44-34.1-1(c)(1), and ADD}

{ADD (b) The levy calculated by applying the appropriate cumulative inflation adjustment to the tax rate used by each city and town and fire district for fiscal year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions contained in section 44-34.1-1. ADD}

{ADD (c)(1) Funds shall be distributed to the cities and towns and fire districts as follows: ADD}

{ADD (i) On October 20, 1998 and each October 20th thereafter through October 20, 2004, twenty-five percent (25%) of the amount calculated by the Director of Administration to be the difference for the upcoming fiscal year. ADD}

{ADD (ii) On February 20, 1999 and each February 20th thereafter through February 20, 2005, twenty-five percent (25%) of the amount calculated by the Director of Administration to be the difference for the upcoming fiscal year. ADD}

{ADD (iii) On June 20, 1999 and each June 29th thereafter through June 20, 2005, fifty percent (50%) of the amount calculated by the Director of Administration to be the difference for the upcoming fiscal year. ADD}

{ADD (2) Funds distributed to the cities and towns and fire districts for fiscal year 2006 shall be calculated as the funds distributed in fiscal year 2005 adjusted by the change in the consumer price index- all urban consumers (CPI-U) published by the Bureau of Labor Statistics of the United States Department of Labor from June 2004 to June 2005. Twenty five percent (25%) of the amounts calculated shall be distributed to the cities and towns and fire districts on October 20, 2005, twenty five percent (25%) on February 20, 2006, and fifty percent (50%) on June 20, 2006. The funds shall be distributed to each city and town and fire district in the same proportion as distributed in fiscal year 2005. ADD}

{ADD (3) Prior to October 20, 2006, the Director of Administration shall calculate to the nearest tenth of one cent the number of cents of sales tax received for the fiscal year ending June 30, 2005 equal to the amount of funds distributed to the cities and towns and fire districts under this chapter during fiscal year 2006, and the percent of the total funds distributed in fiscal year 2006 received by each city and town and fire district, calculated to the nearest one-hundredth of one percent. The Director of Administration shall transmit those calculations to the Governor, the Speaker of the House, the President of the Senate, the Chairperson of the House Finance Committee, the Chairperson of the Senate Finance Committee, the House Fiscal Advisor, and the Senate Fiscal Advisor. The number of cents, applied to the sales taxes received for the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to the cities and towns and fire districts under this act for fiscal year 2007 and each year thereafter. The cities and towns and fire districts shall receive that amount of sales tax in the proportions calculated by the Director of Administration as that received in fiscal year 2006. ADD}

{ADD Twenty five percent (25%) of the funds shall be distributed to the cities and towns and fire districts on October 20, 2006 and every October 20 thereafter; twenty five percent (25%) shall be distributed on February 20, 2007 and every February 20 thereafter; and fifty percent (50%) shall be distribute on June 20, 2007 and every June 20 thereafter. ADD}

{ADD 44-34.1-3. Permanent oversight commission. -- ADD} {ADD(a) There is hereby created a permanent oversight commission on inventory taxes and automobile excise taxes. The commission shall consist of the following members: ADD}

{ADD (1) chairperson of House Finance Committee, or designee: ADD}

{ADD (2) chairperson of Senate Finance Committee, or designee; ADD}

{ADD (3) chairperson of the R.I. Vehicle Value Commission; ADD}

{ADD (4) three (3) members of the Rhode Island Assessors Association; ADD}

{ADD (5) director of Department of Administration, or designee; ADD}

{ADD (6) chief of the Office of Municipal Affairs, or designee; ADD}

{ADD (7) the president of the Rhode Island League of Cities and Towns, or designee; ADD}

{ADD (8) the administrator of the R.I. Registry of Motor Vehicles, or designee; ADD}

{ADD (9) the Mayor of the City of Providence, or designee. ADD}

{ADD (b) The purpose of the commission shall be to study and evaluate the phase out of the automobile excise tax and to establish procedures when necessary to facilitate the phase out of said tax by July 1, 2005. ADD}

{ADD (c) The commission, at its first meeting, shall elect a chairperson from its membership. ADD}

{ADD (d) The commission shall meet no less than two (2) times per year at the call of the chairperson or upon the request of at least three (3) of its members. ADD}

{ADD (e) The members shall receive no compensation for their services. All departments and agencies of the state shall furnish advice and information, documentary or otherwise to the commission and its agents as is deemed necessary or desirable by the commission to facilitate the purposes of the commission. ADD}

{ADD 44-34.1-4. Severability. -- ADD} {ADDIf any provision of this chapter or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. ADD}

SECTION 4. On July 1, 2005, the provisions of Chapter 34 of Title 44 entitled "Excise on Motor Vehicle and Trailers" shall be repealed in its entirety.

SECTION 5. This article shall take effect upon passage.

SECTION 1. Title 42 of the General Laws entitled "State Affairs and Government" is hereby amended by adding thereto the following chapter:

{ADD 42-128-1. Findings. -- ADD} {ADD (1) Rhode Island has an older housing stock which contributes invaluably to community character, and that in order to maintain the stability of neighborhoods and to sustain health communities, it is necessary to have programs for housing and community development and revitalization. ADD}

{ADD (2) Rhode Island has an active private sector that is engaged in supplying housing. ADD}

{ADD (3) Rhode Island has an active non-profit housing sector, which can, if provided adequate support, assist low and moderate income persons and works to improve conditions in neighborhoods and communities. ADD}

{ADD (4) Housing that is not adequately maintained is a source of blight in communities and a cause of public health problems. Public health and safety are impaired by poor housing conditions, poisoning from lead paint and respiratory disease (asthma) are significant housing related health problems in Rhode Island. ADD}

{ADD (5) There is an increasing need for supported living arrangements for the elderly and a continuing need for supported living arrangements for the disabled and the homeless. ADD}

{ADD (6) Fair housing, and the potential of unequal treatment of individuals based on race, ethnicity, age, disability, and family, must be given continuing attention. ADD}

{ADD (7) Housing costs consume a disproportionate share of income for many Rhode Islanders; housing affordability is a continuing problem, especially for first time home buyers and lower and moderate income renters; the high cost of housing adversely affects the expansion of Rhode Island's economy. Housing affordability and availability affect conditions of homelessness. The high cost of housing and the lack of affordable, decent housing for low income households is a source of hardship for very low income persons and families in Rhode Island. ADD}

{ADD (8) The Rhode Island Housing and Mortgage Finance Corporation, which has provided more than two decades of assistance in addressing issues of both the affordability of home ownership and rental housing and the preservation of the housing stock for low and moderate income persons, is faced with operating deficits in the year 2001 and must either increase revenues or reduce programs in order to remain viable. ADD}

{ADD (9) The Federal government has been reducing its commitment to housing since 1981, and there is no indication that earlier levels of Federal support for housing will be restored. ADD}

{ADD (10) Public housing authorities, which rely on Federal support that is being reconsidered, have been and continue to be an important housing resource for low income families and the elderly. ADD}

{ADD (11) Rhode Island, unlike most other states, does not have an agency or department of state government with comprehensive responsibility for housing. ADD}

{ADD (12) It is necessary and desirable in order to protect that public health and to promote the public welfare, to establish a housing resources agency and a housing resources commission for the purposes of improving housing conditions, promoting housing affordability, engaging in community development activities, and assisting the urban, suburban, and rural communities of the state. ADD}

{ADD 42-128-2. Rhode Island Housing Resources Agency Created. -- ADD} {ADDThere is hereby created within the executive department a housing resources agency with the following purposes, organization, and powers: ADD}

{ADD (a) Purposes: ADD}

{ADD (1) To provide coherence to the housing programs of the state of Rhode Island and the departments, agencies, commissions, corporations and subdivisions thereof. ADD}

{ADD (2) To provide for the integration and coordination of the activities of the Rhode Island Housing and Mortgage Finance Corporation and the Rhode Island Housing Resources Commission. ADD}

{ADD (b) Coordinating committee -- Created -- Purposes and powers: ADD}

{ADD (1) The coordinating committee of the Housing Resources Agency shall be comprised of the chairperson of the Rhode Island Housing and Mortgage Finance Corporation, the chairperson of the Rhode Island Housing Resources Commission, the director of the Department of Administration, or the designee of the director, and the executive director of the Rhode Island Housing and Mortgage Finance Corporation. The chairperson of the Rhode Island Housing Resources Commission shall be chairperson of the coordinating committee. The executive director of Rhode Island Housing and Mortgage Finance Corporation shall be the executive director and chief operating officer of the coordinating committee. ADD}

{ADD (2) The coordinating committee shall develop and shall implement, with the approval of the Rhode Island Housing and Mortgage Finance Corporation and Rhode Island Housing Resources Commission, a memorandum of agreement describing the fiscal and operational relationship between Rhode Island Housing and Mortgage Finance Corporation and Rhode Island Housing Resources Commission and shall define which programs of Federal assistance will be applied for on behalf of the state by Rhode Island Housing and Mortgage Finance Corporation and Rhode Island Housing Resources Commission. ADD}

{ADD 42-128-3. Rhode Island Housing and Mortgage Finance Corporation. -- ADD} {ADDThe Rhode Island Housing and Mortgage Finance Corporation established by chapter 42-55 of the general laws, shall remain an independent corporation and shall serve as the housing finance and development division of the Rhode Island Housing Resources Agency. ADD}

{ADD 42-128-4. Rhode Island Housing Resources Commission. -- ADD} {ADDThe Rhode Island Housing Resources Commission shall be an agency within the executive department and shall be the planning and policy, standards and programs division of the Rhode Island Housing Resources Agency. ADD}

{ADD 42-128-5. Purposes. -- ADD} {ADDThe purposes of the commission shall be: ADD}

{ADD (a) To develop and promulgate state policies, and plans, for housing and performance measures for housing programs established pursuant to state law. ADD}

{ADD (b) To coordinate activities among state agencies and political subdivisions pertaining to housing. ADD}

{ADD (c) To promote the stability of and quality of life in communities and neighborhoods. ADD}

{ADD (d) To provide opportunities for safe, sanitary, decent, adequate and affordable housing in Rhode Island. ADD}

{ADD (e) To encourage public-private partnerships that foster the development maintenance, and improvement of housing and housing conditions, especially for low and moderate income people. ADD}

{ADD (f) To foster and support no-profit organizations, including community development corporations, and their associations and intermediaries, that are engaged in providing and housing related services. ADD}

{ADD (g) To encourage and support partnerships between institutions of higher education and neighborhoods to develop and retain quality, healthy housing and sustainable communities. ADD}

{ADD 42-128-6. Commission -- Membership and terms -- Officers -- Expenses -- Meetings. -- ADD} {ADD(a)(1) Membership; The commission shall have twenty-six (26) members as follows: the directors of departments of administration, business regulation, elderly affairs, health, human services, mental health retardation and hospitals, the chairperson Rhode Island Housing and Mortgage Finance Corporation, and the attorney general, shall be ex officio members; the President of the Rhode Island Bankers Association, or the designee of the president, the president of the Rhode Island Mortgage Banker's Association or the designee of the president; the president of the Rhode Island Realtors Association, or the designee of the president; the executive director of the Rhode Island Housing Network, the executive director of the Rhode Island Coalition for the Homeless, the president of the Rhode Island Association of Executive Directors for Housing, or the designee of the president, and eleven (11) members who have knowledge of and have a demonstrated interest in housing issues as they affect low and moderate income people, appointed by the governor with the advice and consent of the senate: one (1) of whom shall be the representative of the homeless, one (1) of whom shall be a representative of a community development corporation, one (1) of whom shall be the representative of an agency addressing lead poisoning issues, one (1) of whom shall be a local planner, one (1) of whom shall be a local building official, one (1) of whom shall be a representative of fair housing interests, one (1) of whom shall be representative of an agency advocating the interest of racial minorities, one (1) of whom shall be a representative of the Rhode Island Builders Association, one (1) of whom shall be a representative of insurers, one (1) of whom shall be a representative of a community development intermediary that provides financing and technical assistance to housing non-profits, and one (1) of whom shall be a non-profit developer. ADD}

{ADD (2) The terms of appointed members shall be three (3) years, except for the original appointments, the term of four (4) of whom shall be one (1) year and the term of four (4) of whom shall be two (2) years; no member may serve more than two(2) successive terms. ADD}

{ADD (b) Officers. The governor shall from among the members of the commission appoint the chairperson of the commission, who shall not be an ex officio member, with the advice and consent of the senate. The commission shall elect annually a vice-person, who shall be empowered to preside at meetings in the absence of the chairperson, and a secretary. ADD}

{ADD (c) Expenses. The members of the commission shall serve without compensation, but shall be reimbursed for their reasonable actual expenses necessarily incurred in the performance of their duties. ADD}

{ADD (d) Meetings. Meetings of the commission shall be held upon the call of the chairperson, or five (5) members of the commission, or according to such schedule as may be annually established by the commission, provided however that the commission shall meet at least once quarterly. A majority of members of the commission, not including vacancies, shall constitute a quorum, and no vacancy in the membership of the commission shall impair the right of a quorum to exercise all the rights and perform all of the duties of the commission. ADD}

{ADD 42-128-7. General powers. -- ADD} {ADDThe commission shall have the following powers, together with all powers incidental thereto or necessary for the performance of those set forth in this chapter: ADD}

{ADD (a) To sue and be sued. ADD}

{ADD (b) To negotiate and to enter into contracts, agreements, and cooperative agreements with agencies and political subdivisions of the state, not-for-profit corporations, for profit corporations, and other partnerships, associations and persons for any lawful purpose necessary and desirable to effect the purposes of this chapter. ADD}

{ADD (c) To adopt by-laws and rules for the management of its affair and for the exercise of its powers and duties, and to establish such committees, workgroups, and advisory bodies as it from time to time may be deemed necessary. ADD}

{ADD (d) To receive and accept grants or loans as may be made by the Federal government, and grants, donations, contributions and payments from other public and private sources. ADD}

{ADD (e) To grant or loan funds to agencies and political subdivisions of the state or to private groups to effect the purposes of this chapter. ADD}

{ADD (f) To secure the cooperation and assistance of the United States and any of its agencies, and of the agencies and political subdivisions of this state in the work of the commission. ADD}

{ADD (g) To establish, charge, and collect fees and payments for its services. ADD}

{ADD 42-128-8. Powers and duties. -- ADD} {ADDIn order to provide housing opportunities for all Rhode Islanders, to maintain the quality of housing in Rhode Island, and to coordinate and make effective the housing responsibilities of the agencies and subdivisions of the state, the commission shall have the following powers and duties: ADD}

{ADD (a) Policy, planning and coordination of state housing functions. The commission shall have the power and duty: ADD}

{ADD (1) To prepare and adopt the state's plans for housing, provided however that this provision shall not be interpreted to contravene the prerogative of the state planning council to adopt a state guide plan for housing. ADD}

{ADD (2) To prepare, adopt, and issue the state's housing policy. ADD}

{ADD (3) To conduct research on and make reports regarding housing issues in the state. ADD}

{ADD (4) To advise the governor and general assembly on housing issues and to coordinate housing activities among government agencies and agencies created by state law or providing housing services under government programs. ADD}

{ADD (b) Establish, implement, and monitor state performance measures and guidelines for housing programs. The commission shall have the power and the duty: ADD}

{ADD (1) To promulgate performance measures and guidelines for housing programs conducted under state law. ADD}

{ADD (2) To monitor and evaluate housing responsibilities established by state law, and to establish a process for annual reporting on the outcomes of the programs and investments of the state in housing for low and moderate income people. ADD}

{ADD (3) To hear and resolve disputes pertaining to housing issues. ADD}

{ADD (c) Administer such programs pertaining to housing resources as may be assigned by state law. The commission shall have the power and duty to administer programs for housing, housing services, and community development, including but not limited to programs pertaining to: ADD}

{ADD (1) Abandoned properties and the remediation of blighting conditions. ADD}

{ADD (2) Lead abatement and to manage a lead hazard abatement program in cooperation with the Rhode Island Housing and Mortgage Finance Corporation. ADD}

{ADD (3) Services for the homeless. ADD}

{ADD (4) Rental assistance. ADD}

{ADD (5) Community development. ADD}

{ADD (6) Outreach, education and technical assistance services. ADD}

{ADD (7) Assistance, including financial support, to non-profit organizations and community development corporations. ADD}

{ADD (8) Tax credits that assist in the provision of housing or foster community development or that result in support to non-profit organizations performing functions to accomplish the purposes of this chapter. ADD}

{ADD 42-128-9. Offices within the commission. -- ADD} {ADDThere shall be, as a minimum, the following offices within the commission: the office of policy and planning, the office of housing program performance and evaluation, the office of homelessness services and emergency assistance, and the office of community development, programs and technical assistance. The commission may establish by rule such other offices, operating entities, and committees as it may deem appropriate. ADD}

{ADD 42-128-10. Appropriations. -- ADD} {ADDThe general assembly shall annually appropriate such sums as it may deem necessary to enable the commission to carry out its assigned purposes; and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sums appropriated or so much thereof as may be from time to time required, upon receipt by him or her of proper vouchers approved by the chairperson, or the executive director. ADD}

{ADD 42-128-11. Executive director -- Employees. -- ADD} {ADDThe commission shall appoint an executive director, who shall not be subject to the provisions of chapter 4 of title 36, and who shall serve as the state housing commissioner. The commission shall set the compensation and the terms of employment of the executive director. The commission shall also cause to be employed such staff and technical and professional consultants as may be required to carry out the powers and duties set forth in this chapter. All staff including the executive director may be secured through a memorandum of agreement with the Rhode Island Housing and Mortgage Finance Corporation as provided for in section 42-128-2(b)(2). Any person who is in the civil service and is transferred to the commission may retain civil service status. ADD}

{ADD 42-128-12. Coordination with other state agencies. -- ADD} {ADDState agencies, departments, authorities, corporations, boards, commissions, and political subdivisions shall cooperate with the commission in the conduct of its activities, and specifically: the Rhode Island historical preservation and heritage commission shall advise the commission on issues of historical preservation standards as they pertain to housing and the use of historical preservation programs to improve housing and to enhance community character; the statewide planning program, created pursuant to section 42-11-10, shall advise the commission on issues of planning in general and land use controls and shall revise the state guide plan, as necessary, to achieve consistency with official state plans and policies for housing adopted by the commission, and the department of business regulation shall advise the commission on issues of business regulation affecting housing, shall review its regulations and practices to determine any amendments, changes, or additions which might be appropriate to advance the purposes of this chapter, and shall designate an official within the department to serve as liaison to and the contact person for the commission on issues related to housing. ADD}

{ADD 42-128-13. Open meetings law. -- ADD} {ADD The housing resources agency, the coordinating committee, and the housing resources commission and any committee, council, or advisory body created by the commission shall conform to the provisions of chapter 42-46. ADD}

{ADD 42-128-14. Public records law. --ADD} {ADD The housing resources agency, the coordinating committee, and the housing resources commission and any committee, council, or advisory body created by the commission shall conform to the provisions of chapter 38-2. ADD}

{ADD 42-128-15. Administrative procedures act. -- ADD} {ADDThe commission may adopt such rules, including measurable standards, in accordance with the provisions of chapter 42-35 as may be necessary to the purposes of this chapter. ADD}

{ADD 42-128-16. Annual report. --ADD} {ADD The commission shall submit for each calendar year by March 1 of the next year a report to the governor and the general assembly on its activities and its findings and recommendations regarding housing issues, which report by census tract, shall include the number and dollar amount of its programs and an assessment of health related housing issues, including the incidence of lead poisoning. ADD}

{ADD 42-128-17. Severability and liberal construction. --ADD} {ADD If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. The provisions of this chapter shall be construed liberally in order to accomplish the purposes thereof, and where any specific power is given to the commission, the statement thereof shall not be deemed to exclude or impair any power otherwise in this chapter conferred upon said commission. ADD}

SECTION 2. Section 42-55-21 of the General Laws in Chapter 42-55 entitled "Rhode Island Housing and Mortgage Finance Corporation" is hereby repealed.

{DEL 42-55-21. Advisory committee. -- DEL} {DEL To assist the authority in the discharge of its duties the governor shall appoint from among interested citizens of the state of Rhode Island an advisory committee of fifteen (15) persons, including persons with experience or training in urban renewal, building, social work, mortgage financing, the municipal bond market, architecture, land use planning, economic development, and municipal government. It shall be the role of the advisory committee to assist the authority and its staff in formulating policies and procedures dealing with site selection, tenant selection, rent levels, economic feasibility, design objectives, and such other questions relevant to the authority's underlying goal of providing housing for families and attaining balanced communities. Members of the advisory committee shall receive no compensation. DEL}

SECTION 3. The housing resources commission shall use not less than eighty-five percent (85%) of the funds appropriated to it for fiscal year 1999 to establish a lead hazard abatement program, which shall be administered in cooperation with the Rhode Island Housing and Mortgage Finance Corporation. The lead hazard abatement program herein provided for may be used to make grants, interest payments on loans, loan guarantees, to support other lead abatement activities, as appropriate, to establish a revolving loan fund, and to match funds from other sources for lead abatement and lead hazard reduction. The purposes of the program shall be to maximize effectiveness of lead abatement activities and the availability of resources for lead abatement and lead hazard reduction.

SECTION 4. Section 42-55-5 of the General Laws in Chapter 42-55 entitled "Rhode Island Housing and Mortgage Finance Corporation" is hereby amended to read as follows:

42-55-5. General powers. -- The corporation shall have all of the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter; including, but without limiting the generality of the foregoing, the power to:

(1) Sue and be sued in its own name;

(2) Have an official seal and to alter the same at pleasure;

(3) Have perpetual succession;

(4) Maintain an office in the city of Providence or at such other place or places within this state as it may designate;

(5) Adopt and from time to time amend and repeal by-laws, rules, and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the corporation and the conduct of its business, and such by-laws, rules, and regulations may contain provisions indemnifying any person who is or was a commissioner, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a commissioner, director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, in the manner and to the extent provided in section 7-1.1-4.1;

(6) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(7) Acquire real or personal property, or any interest therein, on either a temporary or long term basis in its own name by gift, purchase, transfer, foreclosure, lease, or otherwise, including rights or easements in property; to hold, sell, assign, lease, encumber, mortgage, or otherwise dispose of any real or personal property or any interest therein; to hold, sell, assign, or otherwise dispose of any mortgage interest owned by it or under its control, custody or in its possession; and to release or relinquish any right, title, claim, lien, interest, easement, or demand, however acquired, including any equity or right of redemption in property foreclosed by it, and to do any of the foregoing by public or private sale, with or without public bidding, notwithstanding the provisions of any other law;

(8) To enter into agreements or other transactions with and accept grants and the cooperation of the United States or any governmental agency or instrumentality thereof or of the state or any governmental agency or instrumentality thereof in furtherance of the purposes of this chapter, including but not limited to the development, maintenance, operation, and financing of any housing development, housing project, or health care facility, and to do any and all things necessary in order to avail itself of such aid and cooperation;

(9) To make contracts with the state or any governmental agency thereof, municipalities, and counties of the state, the federal government, public corporations or bodies, and private corporations or individuals;

(10) To receive and accept aid or contributions from any source of money, property, labor, or other things of value, to be held, used, and applied to carry out the purposes of this chapter subject to the conditions upon which the grants and contributions may be made, including, but not limited to, gifts or grants from any governmental agency or instrumentality of the United States or this state for payment of rent supplements to eligible persons or families or for the payment in whole or in part of the interest expense for a housing development, housing project, or health care facility or for any other purpose consistent with this chapter;

(11) To provide, contract, or arrange for consolidated processing of any aspect of a housing development, housing project, or health care facility in order to avoid duplication thereof by either undertaking that processing in whole or in part on behalf of any governmental agency, or instrumentality of the United States or of this state, or, in the alternative, to delegate the processing in whole or in part to any such governmental agency or instrumentality;

(12) To stimulate environmental planning for housing for persons of low and moderate income in order to enhance opportunities of such persons for self-development and employment;

(13) To employ architects, engineers, attorneys, accountants, housing construction and financial experts, and such other advisors, consultants, and agents as may be necessary in its judgment and to fix their compensation;

(14) To procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage loans, in such amounts and from such insurers as it deems desirable;

(15) Subject to any agreement with bondholders or noteholders, to invest monies of the corporation not required for immediate use, including proceeds from the sale of any bonds or notes, in such securities, obligations, time or other deposit accounts as shall be permitted by law for investment or deposit of state funds by the general treasurer and in secured promissory notes held by municipal corporations which notes represent the borrowings by third parties of federal grants;

(16) To include in any borrowing such amounts as may be deemed necessary by the corporation to pay financing charges, interest on such obligations for such period as the corporation shall permit, consultant advisory and legal fees, and such other expenses as are necessary or incident to such borrowing;

(17) Subject to any agreements with bondholders or noteholders, to purchase bonds or notes of the corporation out of any funds or money of the corporation available therefor, and to hold, cancel, or resell those bonds or notes;

(18) To make and publish rules and regulations respecting its lending programs and such other rules and regulations as are necessary to effectuate its corporate purposes;

(19) To make and execute contracts with mortgage bankers or other financial institutions in this state for the servicing of mortgages acquired by the corporation pursuant to this chapter, and to pay the reasonable value of services rendered to the corporation pursuant to these contracts;

(20) Subject to any agreement with bondholders or noteholders, to renegotiate, refinance, or foreclose, or contract for the foreclosure of, any mortgage in default; to waive any default or consent to the modification of the terms of any mortgage; to commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract, or other agreement, and to bid for and purchase property at any foreclosure or at any other sale, or acquire or take possession of property; to operate, manage, lease, dispose of, and otherwise deal with such property, in such manner as may be necessary to protect the interest of the corporation and the holders of its bonds, notes, and other obligations;

(21) To borrow money and issue bonds and notes or other evidences of indebtedness thereof as hereinafter provided;

(22) Subject to any agreement with bondholders or noteholders to consent to any modification with respect to rate of interest, time, and payment of any installment of principal or interest security or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract, or agreement of any kind to which the corporation is a party;

(23) To procure or agree to the procurement of insurance or guarantees from the federal government or any governmental agency or instrumentality thereof, or from any private insurance company, of the payment of any bonds or notes or any other evidences of indebtedness thereof issued by the corporation including the power to pay premiums on that insurance;

(24) To insure long-term mortgage loans made by mortgage lenders approved by the corporation to eligible housing sponsors as determined by the corporation. The corporation may establish such terms and conditions as it deems necessary for the supervision of the holders of corporation insured loans and for its insurance program, including the maximum amount which may be insured, maximum interest rates, down payment requirements, refinancing terms, insurance premium requirements, and remedies on default or foreclosure;

(25) To make temporary loans, with or without interest, to eligible housing sponsors of single-family residential housing units to be owned and occupied by the sponsor to defray down payment costs and charges on mortgage loans purchased or made by the corporation;

(26) To make and undertake to make any and all contracts and agreements, including the payment of fees, with mortgage lenders in this state for assistance rendered the corporation;

(27) Subject to any agreement with bondholders or noteholders, to purchase and make commitments for the purchase of, to invest in, and dispose of securities or other obligations issued by mortgage lenders to finance residential housing for persons and families of low and moderate income, including but not limited to securities or other obligations payable from, backed by or otherwise evidencing an interest in mortgages securing mortgage loans to finance residential housing for persons and families of low and moderate income;

(28) To the extent permitted under its contract with the holders of bonds, bond anticipation notes and other obligations, to enter into contracts with any mortgagor containing provisions enabling the mortgagor to reduce the rental or carrying charges to families of persons unable to pay the regular schedule of charges for housing where, by reason of other income or payment from any department, agency, or instrumentality of the United States or this state, the reductions can be made without jeopardizing the economic stability of housing being financed;

(29) To establish such programs of compensation, including deferred compensation and retirement plans, as the commissioner may deem appropriate;

(30) To do any and all things necessary or convenient to carrying out its purposes and exercise the powers given and granted in this chapter;

(31) To issue assurances and guarantees and to secure the same with such collateral as the corporation may deem appropriate;

(32) Notwithstanding any other law to the contrary, to make subsidies in furtherance of its corporate purposes, whether in the form of interest cost savings or otherwise, and to require a recipient thereof to repay all or any portion of that subsidy upon such terms and conditions as the corporation may establish;

(33) To establish an insurance fund and to insure therefrom, either alone or in conjunction with private enterprise, the state, the United States, or any governmental agency or instrumentality thereof, mortgage loans or participations whether or not made or acquired by the corporation; and

(34) To establish an equal employment and affirmative action program applicable to direct and indirect recipients of funds of the corporation.

{ADD (35) To administer and manage Section 8 tenant based certificate programs and Section 8 rental voucher programs in those municipalities that do not have a local housing authority and in those municipalities whose local housing authority elects to contract with Rhode Island Housing Mortgage and Finance Corporations. ADD}

SECTION 5. Chapter 45-25 of the General Laws entitled "City Housing Authorities" is hereby amended by adding thereto the following section:

{ADD 45-25-15.1. Section 8 tenant based certificate and Section 8 rental voucher programs. -- ADD} {ADD The authority shall have exclusive jurisdiction to administer and manage Section 8 tenant based certificate programs and Section 8 voucher programs within its geographical area of operation inclusive of any certificate or voucher issued by the Housing and Mortgage Finance Corporation which results in a tenant moving into the authority's geographical area of operation. ADD}

SECTION 6. This article shall take effect July 1, 1998.

SECTION 1. Section 42-66.2-3 of the General Laws in Chapter 42-66.2 entitled "Pharmaceutical Assistance to the Elderly" is hereby amended to read as follows:

42-66.2-3. Definitions. -- As used in this chapter, unless the context requires otherwise, the following words shall have the following meaning:

(1) "Consumer" means any full time resident of the state who fulfills the eligibility requirements set forth in section 42-66.2-5. Residence for purposes of this chapter shall be in accordance with the definitions and evidence standards set forth in section 17-1-3.1.

(2) "Contractor" shall mean a third party or private vendor capable of administering a program of reimbursement for prescription drugs, and drug program eligibility administrative support as required by the director, such vendor to be determined through a competitive bid process in which the director awards a three (3) year contract for services.

(3) "Department" means the department of elderly affairs.

(4) "Director" shall mean the director of the department of elderly affairs.

(5) "Drugs" and "eligible drugs" shall mean insulin and shall mean noninjectable drugs which require a physician's prescription according to federal law and which are contained in the following American hospital formulary service pharmacologic-therapeutic classifications categories that have not been determined by the federal "drug efficacy and safety implementation (DESI) commission" to lack substantial evidence of effectiveness. Drugs and eligible drugs are limited to the following classification categories: cardiac drugs, hypotensive drugs, diuretics, anti-diabetic agents, insulin, disposable insulin syringes, vasodilators (cardiac indications only), anticoagulants, hemorreolgic agents, glaucoma drugs, drugs for the treatment of Parkinson's disease, antilipemic drugs and oral antineoplastic drugs and drugs for the treatment of asthma and other chronic respiratory diseases and prescription vitamin and mineral supplements for renal patients {ADD and drugs approved for the treatment of alzheimer's disease ADD}.

(6) "Income" for the purposes of this chapter, shall mean the sum of federal adjusted gross income as defined in the Internal Revenue Code of the United States, and all nontaxable income including but not limited to, the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief (not including relief granted under this chapter), the gross amount of any pension or annuity (including Railroad Retirement Act benefits, all payments received under the federal Social Security Act, state unemployment insurance laws, and veterans' disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of "loss of time" insurance. It does not include gifts from nongovernmental sources, or surplus foods or other relief in kind supplied by a public or private agency.

(7) "Pharmaceutical manufacturer" means any entity holding legal title to or possession of a national drug code number issued by the federal food and drug administration.

(8) "Pharmacy" means a pharmacy licensed by the state of Rhode Island and whose place of business is physically located within the state.

(9) "Pilot program contractor" shall mean blue cross and blue shield of Rhode Island.

SECTION 2. This article shall take effect upon passage.

SECTION 1. Section 16-7.1-1, 16-7.1-2, 16-7.1-3, 16-7.1-5, 16-7.1-10, 16-7.1-11, 16-7.1-12, 16-7.1-14 of the General Laws in Chapter 16-7.1 entitled "The Rhode Island Student Investment Initiative" are hereby amended to read as follows:

16-7.1-1. Legislative findings. -- (A) {ADD The intent of ADD} {DEL T DEL} {ADD t ADD}his legislation is {ADD to enact ADD} a {DEL transition step toward enacting DEL} comprehensive state education aid funding program which addresses four (4) fundamental principles:

(1) Closing the inequitable resource gaps among school districts and schools;

(2) Closing inequitable gaps in performance and achievement among different groups of students, especially those correlated with poverty, gender, and language background;

(3) Targeting investments to improve student and school performance;

(4) And establishing a predictable method of distributing state education aid in a manner that addresses the over-reliance on the property tax to finance education.

This {DEL transitional step is DEL} {ADD legislation is further ADD} designed to accelerate the implementation of the State Comprehensive Education Strategy. The strategy is an action plan for ensuring that all children achieve at high levels and become lifelong learners, productive workers and responsible citizens. The standard for expected student achievement is currently being set at a high level both by the board of regents and in Rhode Island's districts and schools. High standards must be supported and these expectations must now be reached by all our students. All the state's children must enjoy the success that comes with proficiency in skill and knowledge.

(B) Evaluation of Success.. - Improved student and school performance is the key measure of the success of Rhode Island's schools. This success cannot occur without investment based on the four fundamental principles as stated in section 16-7-1.1. The success of these investments shall be evaluated based on: accountability for student and school performance; accountability in terms of whether the state's investment is sufficiently adequate and equitable to support such improvement in performance; and on accountability for district and school expenditures.

16-7.1-2. Accountability for student performance. -- The board of regents shall adopt and publish statewide standards of performance and performance benchmarks in core subject areas to include writing and mathematics (grades 4, 8 and 10). These standards and performance benchmarks shall be ratified by the board and implemented by December 31, 1997. By December 31, 1998, performance standards and performance benchmarks for reading in two grades shall be added.

Districts and schools need to be held accountable for student performance results. Therefore, every school district receiving state education aid under Title 16 of the general laws shall develop a district strategic plan. The district strategic plan shall: be based on high academic standards for student performance consistent with the Statewide standards and benchmarks; be the product of a shared community wide process which defines a vision of what students should know and be able to do; address the needs of each school in the district; encourage the development of school-based improvement planning and implementation; {ADD include a process for mentoring of new teachers; ADD} be designed to improve student achievement with emphasis on closing the performance gaps among groups of students such as the performance gaps correlated with poverty, gender, and language background; include an asset protection plan; and be consistent with Rhode Island's Comprehensive Education Strategy. In order to assure the most efficient use of resources implementing strategic plans, districts and schools are encouraged to work together as consortia and as part of the regional collaboratives.

The strategic plan shall include strategies to improve the performance of students in mathematics, reading and writing. These strategies shall be based on the adequate yearly progress expected for students and schools. Annual performance targets for determining whether schools and districts have made adequate yearly progress will be set by the commissioner of education. The general assembly expects these district strategies to increase the number of fourth grade students performing at or above the proficient standard in mathematics, reading and writing in each district and school. In fiscal 1998-99 and beyond, the increase shall be established annually in accordance with section 16-7.1-4.

{ADD Each strategic plan must indicate the manner in which self-studies will be completed at the school level in accordance with guidelines established by the commissioner. Funds shall be appropriated to the Department of Elementary and Secondary Education to assist districts with on-site reviews. Schools to be visited shall be determined by the Commissioner. ADD}

All district strategic plans {ADD and annual updates ADD} shall be submitted to the commissioner of education no later than November 1, {DEL 1998 DEL} {ADD of each year ADD}.

16-7.1-3. Accountability for district and school expenditures. -- By June 30, 1998, all school districts shall implement a uniform program to track educational expenditures and investments. To ensure that each district's report on educational expenditures accurately reflects actual experience, the business office in each school district shall annually declare that the facts and figures presented in the district expenditure report are accurate to the best of their knowledge. In addition, each school committee shall annually ratify the district expenditure report and transmit the report to the commissioner of education no later than November 1 of each year. {ADD Furthermore, the commissioner of education in conjunction with the Rhode Island Association of School Business Officials shall determine the feasibility of and implement when appropriate a standard chart of accounts for all school districts. If implemented, the municipalities shall integrate use of this chart of accounts with municipal accounts as appropriate. ADD}

16-7.1-5. Intervention and support for failing schools. -- The Board of Regents shall adopt a series of progressive support and intervention strategies consistent with the Comprehensive Education Strategy and the principles of the "School Accountability for Learning and Teaching" (SALT) of the Board of Regents for those schools and school districts that continue to fall short of performance goals outlined in the district strategic plans. {ADD Such strategies shall initially focus on: (1) technical assistance in improvement planning, curriculum alignment, student assessment, instruction, and family and community involvement; (2) policy support; (3) resource oversight to assess and recommend that each school has adequate resources necessary to meet performance goal; and (4) creating supportive partnerships with education institutions, business, governmental or other appropriate nonprofit agencies. If after a three-(3) year period of support there has not been improvement in the education of students as determined by objective criteria to be developed by the Board of Regents, then there shall be progressive levels of control by the Rhode Island Department of Education over the school and/or district budget, program, and/or personnel. Such control by the Rhode Island Department of Education may be exercised in collaboration with the school district and the municipality. If further needed, the school shall be reconstituted. Such reconstitution responsibility is hereby delegated to the Board of Regents and may range from restructuring the school's governance, budget, program, personnel, and/or may include decisions regarding the continued operation of the school. The Board of Regents shall assess the district's capacity and may recommend the provision of additional district, municipal and/or state resources. If a school or school district is under the Board of Regents' control as a result of actions taken by the Board pursuant to this section, the local school committee shall be responsible for funding that school or school district at the same level as in the prior academic year increased by the same percentage as the state total of school aid is increased. ADD}

16-7.1-10. Professional development investment fund. -- In order to continue developing the skills of Rhode Island's teachers and staff, the general assembly hereby establishes a Professional Development Investment Fund. The general assembly shall annually appropriate some sum and distribute based on a pupil-teacher ratio which shall be adjusted annually by the commissioner of education. School districts may use funds received under this category of education aid to replace up to, but no more than, {DEL ten percent (10%) DEL} {ADD fifty percent (50%) ADD} of the amount the school district spent for professional development programs in the previous fiscal year. The expenditure of these funds shall be determined by a committee at each school consisting of the school principal; two teachers selected by the teaching staff of the school and two parents of students attending the school. Collaborative programs between schools are encouraged. These resources shall be used to close student performance gaps in accordance with the school's and district's strategic plan pursuant to section 16-7.1-2.

16-7.1-11. Early childhood investment fund. -- The general assembly hereby establishes the Early Childhood Student Investment Fund to provide schools and teaching staff for the early grades with resources to begin improving student performance {ADD and to provide early care and pre-kindergarten programs ADD}. The general assembly shall annually appropriate some sum and distribute based on each district's proportion of their average daily membership for grades kindergarten through and including third grade in the reference year as defined in section 16-7-16 relative to the statewide average daily membership for the same grades in the same fiscal year. For purposes of this section, average daily membership for grades kindergarten through and including third grade shall be defined in section 16-7-22. These resources shall be used to close student performance gaps in accordance with the district's strategic plan pursuant to section 16-7.1-2. These early childhood investment funds shall be used in coordination with the literacy set-aside funds (chapter 67 of this title). In addition, these funds may be used for early childhood pilot programs, including Child Opportunity Zones (COZs), that {ADD ; (a) ADD} combine and/or leverage some or all of the following state, federal and/or local funds insofar as allowable: student equity investment fund; literacy set-aside; special education funds; Title I funds; and any other appropriate funds {ADD ; (b) that focus on beginning to improve student performance through developmentally appropriate early childhood education and integrated social and health service support. Funding emphasis for early childhood programs shall be given by the districts to the schools serving concentrations of at-risk students and shall be integrated with programs for special needs students; all day kindergarten programs may be funded; and school links shall be made with programs and students to facilitate full assessment of students' school readiness and needs prior to entry into first grade and to help receiving schools meet the entering child's needs. Programs shall include the development and expansion of child care providers, the development of innovative start-up arrangements linked to small businesses, the development of programs and providers in geographically underserved areas, the establishment of before and after school programs with priority to be given to programs linked to schools, to infant/toddler programs, programs related to child opportunity zone family centers, and programs that serve children with special health needs or developmental risks. A district may not fund any program that does not meet standards as established by the Board of Regents. Districts may contract for services with programs which meet Board of Regents standards. Any program which receives funds under this section must keep records on the children's attendance and progress so that data will be available to conduct longitudinal studies. ADD}

16-7.1-12. Student technology investment fund. -- The general assembly hereby establishes the Student Technology Investment Fund to provide schools and teaching staff with up-to-date educational technology and training to help students meet the demands of the 21st century. Rhode Island's Comprehensive Education Strategy calls for providing support to all schools for educational technology. The funds may be used for: curriculum development to improve teaching and learning, in-service professional development to support the effective use of technology in schools; and infrastructure requirements such as equipment, {ADD technology related instructional materials, ADD} software and networking of systems. These resources shall be used to close student performance gaps in accordance with the district's strategic plan pursuant to section 16-7.1-2 and be consistent with the technology plan of the Rhode Island Comprehensive Strategy. The general assembly shall annually appropriate some sum and distribute based on each district's proportion of their average daily membership in the reference year as defined in section 16-7-16. For purposes of this section, average daily membership shall be defined in section 16-7-22. School districts may use funds received under this category of education aid to replace up to, but no more than, {DEL ten percent (10%) DEL} {ADD thirty five percent (35%) ADD} of the amount the school district spent for technology related expenditures in the previous fiscal year. {ADD District plans for the use of technology shall be reviewed by the legislative technology task force. ADD}

16-7.1-14. Joint commission. -- The special joint commission established in section 16-79-2 {ADD supports the funding program established in section 16-7.1-15 and ADD} shall continue to {DEL work toward DEL} {ADD assess its effectiveness as ADD} a comprehensive state education aid funding program. The commission will examine the needs of pre-kindergarten aged children and adult education programs. The commission will also examine compensation and benefit programs of persons employed in public education.

SECTION 2. Section 16-7.1-7 of the General Laws in Chapter 16-7.1 entitled "Determination of state's share for fiscal year 1997-1998" is hereby repealed.

{DEL 16-7.1-7. Determination of state's share for fiscal year 1997-1998. -- DEL} {DELNotwithstanding any other provisions of the general laws, each school district, including the state operated district of Central Falls, shall receive at least the same amount of school aid in fiscal years 1997-1998 through and including fiscal year 1999-2000 as each district received in fiscal year 1996-1997 pursuant to section 16-7-20.7. For fiscal year 1997-1998, regional school districts shall receive the full regionalization bonus as calculated in section 16-7-20.5; except that no regional school district shall receive a regionalization bonus in 1997-1998 which is less than what the district received in 1996-1997, and except that such regionalization bonuses shall not be subject to the provisions of section 16-67-4. DEL}

SECTION 3. Chapter 16-7.1 of the General Laws entitled "The Rhode Island Student Investment Initiative" is hereby amended by adding thereto the following sections:

{ADD 16-7.1-15. The Rhode Island Student Investment Initiative. -- ADD} {ADD Each locally or regionally operated school district shall receive as a base the same amount of school aid in all subsequent fiscal years as each district received in fiscal year 1997-1998. Each school district shall also receive school aid through each investment fund for which that district qualifies pursuant to sections 16-7.1-6, 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11, 16-7.1.12 and 16-7.1-16. These sums shall be in addition to the base amount described in this section. Calculation and distribution of education aid under 16-5-31, 16-5-32, 16-7-20, 16-7-20.5, 16-7-34.2, 16-7-34.3, 16-24-6, 16-54-4 and 16-67-4 is hereby suspended. The funding of the purposes and activities of Chapter 67 of this title, the Rhode Island Literacy and Dropout Prevention Act of 1967, shall be the same amount of the base amount of each district funded for that purpose in fiscal year 1997-1998. In addition each district shall expend three (3) percent of its student equity and early childhood funds under the provisions of chapter 67 of this title. ADD}

{ADD 16-7.1-16. Targeted school aid. --ADD} {ADD In addition to those funds described in 16-7.1-15, each district with a tax effort index below 1.0 as calculated pursuant to 16-7.1-6 and with a free and reduced lunch count in grades K-3 greater than forty percent (40%) shall receive targeted school aid. Districts shall be eligible for aid based on the proportion that their average daily membership bears to the total average daily membership of districts eligible for aid under this section. The local school district shall determine the amount it proposes to spend on the program priorities referred to in this section and such programs and proposed expenditures shall be a part of the district's strategic plan and/or annual updates required under 16-7.1-2. ADD}

{ADD The commissioner may require a school district to reserve up to five percent of its targeted aid for intervention remedies. If however by March 1, the amount reserved is not expended or expected to be spent in the academic year, then the district may expend the funds in accordance with the priorities of this section and with the approval of the commissioner. In addition, there shall be an appropriation for comprehensive on-site school reviews and other accountability measures which the commission deems appropriate in accordance with policies and procedures to be determined by the commissioner and to carry out the purposes of 16-7.1-2. The commissioner may give priority to districts receiving targeted funds for the use of this appropriation. ADD}

{ADD Districts may use targeted funds in new or expanded programs for early childhood education; helping schools to improve instruction to meet high standards; reducing class size at the elementary level; after school programming for middle schools, junior and senior high schools in accordance with 16-7.1-17; establishing and implementing innovative organizations and methods of instruction at the middle, junior high, and/or high school levels; child opportunity zones; teacher mentoring; curriculum revision to meet new standards; school and district intervention; or other programs which the commissioner believes will result in increased student performance. ADD}

{ADD 16-7.1-17. Urban after-school programs. -- ADD} {ADD(a) There is hereby established an after-school program for middle schools, junior and senior high schools to be administered by the Rhode Island Department of Elementary and Secondary Education. ADD}

{ADD (b) Each district receiving targeted funds under this section must use a portion of these funds to establish programs as defined herein at the middle or junior high school level and may establish a program at the senior high school level. Each program shall be located in or near middle schools or junior or senior high schools in school districts which are identified as "at risk" by the legislature in accordance with section 16-7.1-16 and which have an equity index below one (1). The purpose of the programs is to provide students an opportunity to engage in a gainful activity, such as an athletic, cultural, arts, academic, community service, remediation and/or career exploration activity after-school or during the time the schools are not in session. Districts may contract for services with programs which meet Board of Regents standards. The commissioner may require that districts which receive targeted funds establish these programs either district-wide or at an individual school within the district. Nothing contained herein shall prevent the commissioner from interpreting middle or junior high school to mean middle or junior high school age. ADD}

{ADD (c) The Department of Elementary and Secondary Education is hereby authorized to promulgate rules and regulations for the administration and monitoring of the programs for providing any assistance to plan and design the programs, and for annually performing an evaluation of the overall quality of the after-school programs. Qualifying school districts will be required to submit a plan and other reports as may be requested relating to the use of the after-school program funds to the Commissioner of Education. ADD}

SECTION 4. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Community Requirements -- Adequate Minimum Budget Provision" is hereby amended to read as follows:

16-7-23. Community requirements -- Adequate minimum budget provision. -- The school committee's budget provisions of each community for current expenditures in each budget year shall provide for an amount from all sources sufficient to support the basic program and all other approved programs shared by the state. For fiscal years 1998 through and including fiscal year 2000, each community shall contribute local funds to its school committee an amount not less than its local contribution for schools in the previous fiscal year. {ADD A community which has a decrease in enrollment may compute maintenance of effort on a per pupil rather than on an aggregate basis when determining its local contribution; furthermore, a community which experiences a nonrecurring expenditure for its schools may deduct such an expenditure in computing its maintenance of effort. The deduction of nonrecurring expenditures shall be with the approval of the commissioner. ADD} The courts of this state shall enforce this section by writ of mandamus.

Furthermore, whenever any state funds are appropriated for educational purposes, the funds shall be used for educational purposes only and all such state funds must be used to supplement any and all money allocated by a city or town for educational purposes and, in no event, shall state funds be used to supplant, directly or indirectly, any money allocated by a city or town for educational purposes. All state funds shall be appropriated by the municipality to the school committee for educational purposes in the same fiscal year in which they are appropriated at the state level even if the municipality has already adopted a school budget. All state and local funds unexpended by the end of the fiscal year of appropriation shall remain a surplus of the school committee and shall not revert to the municipality. Any such surplus of state or local funds shall not in any respect affect the requirement that each community contribute local funds in fiscal years 1998 through and including fiscal year 2000 in an amount not less than its local contribution for schools in the previous fiscal year, and shall not in any event be deducted from the amount of the local appropriation required to meet the maintenance of effort provision in any given year.

SECTION 5. Chapter 16-8 of the General Laws entitled "Federal Aid" is hereby amended by adding thereto the following section:

{ADD 16-8-10.1. Mandatory School Breakfast Program. - ADD}- {ADD All public elementary schools in which forty percent (40%) or more of the students are eligible for free and reduced price type A lunches pursuant to section 16-8-10 and to federal and state regulations shall be required to make a breakfast program available to students attending the school. The breakfast program shall meet such rules and regulations as are adopted by the commissioner. ADD}

{ADD If a district projects that implementation of a school breakfast program in a traditional cafeteria-type setting is not manageable or cost effective, it may distribute a pre-packaged breakfast in a disposable container which shall be served to the students in a classroom setting before 9:30 A.M. ADD}

SECTION 6. This article shall take effect on July 1, 1998.

SECTION 1. Section 17-25-20 of the General Laws in Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures Reporting" is hereby amended to read as follows:

17-25-20. Eligibility criteria for matching public funds. -- In order to receive matching public funds under section 17-25-19 a qualifying candidate must comply with the following requirements:

(1) The candidate must sign a statement under oath, as provided for in section 17-25-19, pledging to comply with the limitations on contributions and expenditures for election purposes and with all the terms and conditions set forth herein. Upon the filing of the statement, a candidate for general office shall be bound to abide by the limitations on contributions and expenditures set forth in this chapter and may not withdraw from his or her obligation to abide by said restrictions.

(2) (i) Subject to the provisions of subdivision (2)(ii), no participating candidate shall either receive or expend for election purposes more than a total of public and private funds in the sum of one million five hundred thousand dollars ($1,500,000) in an election cycle. No participating candidate for general office other than governor shall receive or expend for election purposes more than a total of public and private funds in the sum of three hundred seventy-five thousand dollars ($375,000) in an election cycle.

(ii) The limitations on contributions received from private sources, matching funds available from the state, and total permitted expenditures shall apply in the 1994 general election and shall {ADD subject to appropriations by the general assembly, ADD} increase by a percentage to be determined by the board of elections in January of each year in which a general election involving general offices is held, beginning in 1998. In no case shall the increase exceed the total increase in the consumer price index since the month in which the previous general election involving general was held.

(3) (i) Only the first two thousand dollars ($2,000) of the aggregate private monetary contributions from a single private source within an election cycle shall be eligible for matching public funds for candidates for governor; provided however the entire amount contributed shall be considered toward the dollar limits provided in subdivision (2).

(ii) Only the first one thousand dollars ($1,000) of the aggregate private monetary contributions from a single private source within an election cycle shall be eligible for matching public funds for candidates for lieutenant governor, secretary of state, attorney general, and general treasurer; provided however the entire amount contributed shall be considered toward the dollar limits provided for in subdivision (2).

(iii) Any private funds lawfully contributed during the current election cycle shall be eligible for matching public funds subject to the terms and conditions of this section, and private funds donated during a preceding election cycle shall not be eligible for matching public funds.

(4) The direct costs incurred in connection with raising campaign funds on behalf of a candidate shall not be deemed to be expenditures for the purposes of the limitations on expenditures set forth in subdivision (2). Direct costs shall include costs of printing and mailing invitations to fundraising events, solicitations for contributions, costs of hosting fundraising events, and travel to those events, but shall not include any portion of the salary or wages of campaign employees, nor the cost of any radio, television, or printed advertisement. The cost of a fundraising event must be less than the amount of money realized from the gross proceeds generated by the fundraising event in order to qualify for this exclusion.

(5) If a candidate who has accepted public funds makes expenditures in excess of the permitted amounts, the candidate shall be liable for a civil assessment payable to the state in an amount equal to three (3) times the amount of excess funds expended. In addition, the candidate shall be ineligible for further participation in the public financing program during the same election cycle.

(6) In order to receive payments under this section, any independent candidate shall first meet the following additional minimum requirements:

(i) Raise an amount in qualified private contributions equal to twenty percent (20%) of the total amount eligible to be matched for election as to the office sought;

(ii) Receive private contributions from a minimum of two hundred fifty (250) individuals contributing at least twenty-five dollars ($25.00) each; and

(iii) Comply with any and all applicable nomination provisions in this title and qualify for the general election ballot pursuant to the process set forth in this title.

(7) No public funds received by any candidate pursuant to sections 17-25-19 through 17-25-27 of this chapter and no private funds used to qualify for the public funds shall be expended by the candidate for any purpose except to pay reasonable and necessary expenses directly related to the candidate's campaign.

(8) No public funds shall be expended by the candidate except for one or more of the following uses directly related to the campaign of the candidate:

(i) Purchase of time on radio or television stations;

(ii) Purchase of rental space on outdoor signs or billboards;

(iii) Purchase of advertising space in newspapers and regularly published magazines and periodicals;

(iv) Payment of the cost of producing the material aired or displayed on radio, television, outdoor signs or billboards, and in newspapers, regularly published magazines, and periodicals;

(v) Payment of the cost of printing and mailing campaign literature and brochures;

(vi) Purchase of signs, bumper stickers, campaign buttons, and other campaign paraphernalia;

(vii) Payment of the cost of legal and accounting expenses incurred in complying with the public financing law and regulations as required by this chapter;

(viii) Payment of the cost of telephone deposits, installation charges, and monthly billings in excess of deposits;

(ix) Payment of the costs of public opinion polls and surveys; and

(x) Payment of rent, utilities and associated expenses connected with the operation of an election headquarters or satellite election offices.

(9) Contributions received and expended by any candidate for the purpose of defraying any expense or satisfying any loan obligations incurred prior to January 1, 1991 by the candidate in furtherance of his or her candidacy in a previous election cycle, as defined in section 17-25-3(5), shall not be counted toward any contribution or expenditure limitation in sections 17-25-18 through 17-25-27.

(10) No candidate who has elected to receive public funds shall contribute to or loan to his or her own campaign a sum in excess of five percent (5%) of the total amount which a candidate is permitted to expend in a campaign for the office pursuant to sections 17-25-19 and 17-25-21.

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

SECTION 1. Title 40 of the General Laws entitled "Human Services" is hereby amended by adding thereto the following chapter:

{ADD 40-8.4-1. Title. -- ADD} {ADD This chapter is hereby entitled "The Health Care for Families Act". ADD}

{ADD 40-8.4-2. Purpose. -- ADD} {ADD It is the intent of the general assembly to continue to meet the goal established in 1993 pursuant to 42-12.3-1 to assure access to comprehensive health care by providing or creating access to health insurance to all Rhode Islanders who are uninsured. Over the course of several years, health insurance through the RIte Care program has been extended to pregnant women and children living in families whose income is less than two hundred fifty percent (250%) of the federal poverty level. Many of the parents of these children are uninsured and without the means to purchase health insurance. Federal funds are available to help pay for health insurance for low-income families through the medical assistance program under section 1931 of title XIX of the social security act which delinks medical assistance from cash assistance and allows for expanded income and resource methodologies. It is the intent of the general assembly, therefore, to implement section 1931 of title XIX of the social security act and in addition to provide expanded access to health insurance for eligible families. Federal funds for some children and their parents may also be available under title XXI of the social security act and it is further the intent of the general assembly to access these funds as appropriate. ADD}

{ADD 40-8.4-3. Definitions . -- ADD} {ADD "Family" means a minor child or children and the parent(s) or relative as defined in section 40-5.1-3, with whom they reside including two parent families in which one parent is working more than 100 hours per month. ADD}

{ADD "Minor child" means a child under the age of eighteen (18) or who is eighteen (18) and a full-time student in a secondary school or in the equivalent level of vocational or technical training. ADD}

{ADD 40-8.4-4. Eligibility. -- ADD} {ADD (a) Medical assistance for families. There is hereby established a category of medical assistance eligibility pursuant to section 1931 of title XIX of the social security act for families whose income and resources are no greater than the standards in effect in the aid to families with dependent children program on July 16, 1996 or such increased standards as the department may determine. The department of human services is directed to amend the medical assistance title XIX state plan and to submit to the U.S. Department of Health and Human Services an amendment to the RIte Care waiver project to provide for medical assistance coverage to families under this chapter in the same amount, scope and duration as coverage provided to comparable groups under the waiver. The department is further authorized and directed to submit such amendments and or requests for waivers to the title XXI state plan as may be necessary to maximize federal contribution for provision of medical assistance coverage under this chapter. However, implementation of expanded coverage under this chapter shall not be delayed pending federal review of any title XXI amendment or waiver. ADD}

{ADD (b) Income. The director of the department of human services is authorized and directed to amend the medical assistance title XIX state plan or RIte Care waiver to provide medical assistance coverage through expanded income disregards or other methodology for families whose income levels are below one hundred eighty-five percent (185%) of the federal poverty level. ADD}

{ADD (c) Resources. Resources shall be disregarded in determining eligibility under this chapter. ADD}

{ADD 40-8.4-5. Managed care. -- ADD} {ADD The delivery and financing of the health care services provided under this chapter shall be provided through a system of managed care. A managed care system integrates an efficient financing mechanism with quality service delivery, provides a "medical home" to assure appropriate care and deter unnecessary and inappropriate care, and places emphasis on preventive and primary health care. ADD}

{ADD 40-8.4-6. Administration. -- ADD} {ADD The department of human services shall assure that eligibility and enrollment is determined and provided in a timely, efficient and user friendly manner, including mail-in applications. The department may enter into any necessary cooperative agreements with the department of health and/or other state agencies to achieve the purposes of this section. Children and families applying for cash assistance through the family independence program, 40-5.1-1 et seq. shall not be required to complete a separate application for medical assistance under this chapter. ADD}

{ADD 40-8.4-7. Buy-In. -- ADD} {ADDThe Department of Human Services shall investigate and develop opportunities for individuals and/or employers to buy into, at the individual's and/or employer's expense, one or more programs the department may establish under this chapter or chapter 42-12.3 to address uninsurance among Rhode Islanders. ADD}

{ADD 40-8.4-8. Appropriations. -- ADD} {ADDAuthorization to pay for health care. The general assembly shall annually appropriate to this department of human services such sums as it may deem necessary to carry out the purposes of this chapter. Authorization to pay for health care services specified in this chapter shall be made by representatives of the department of human services, and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of such sum or sums or so much thereof as may be required from time to time, upon the receipt by him or her of properly authenticated vouchers, provided, however, that the department of human services may enter into cooperative agreements for the transfer of funds to effectuate the purposes set forth in this chapter. ADD}

{ADD 40-8.4-9. Assignment of medical support rights. --ADD} {ADD Any person who is determined eligible for health care assistance under this chapter is hereby deemed to have made an assignment of rights to medical support in accordance with 40-6-9(b), and the provisions of 40-6-9(b) and (d) are incorporated by reference and shall apply to such person. ADD}

{ADD 40-8.4-10. Regulations. --ADD} {ADD The department of human services is authorized to promulgate any regulations necessary to implement this chapter. ADD}

{ADD 40-8.4-11. Severability. -- ADD} {ADDIf any provision in any section of this chapter or the application thereof to any person or circumstances is held invalid, its invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. ADD}

SECTION 2. Section 40-6-29 of the General Laws in Chapter 40-6 entitled "Public Assistance Act" is hereby amended to read as follows:

40-6-29. Health care benefits -- Employers -- Discrimination against public assistance recipients. -- (a) No employer in the state who shall hire, contract with, or employ an individual (hereinafter "recipient") who has been determined eligible to receive public assistance or medical assistance under chapters 6 and 5.1 {ADD and 8.4 ADD} of this title, or chapter 12.3 of title 42 and/or title XIX of the Social Security Act, 42 U.S.C. section 1396 et seq., shall discriminate against the recipient(s) on the basis that the recipient(s) receive health care coverage as an element of their eligibility under those chapters and act.

(b) The department of human services is hereby authorized and directed to amend its regulations and any appropriate state plan(s) pursuant to the federal Social Security Act, 42 U.S.C. section 301 et seq., to provide for imposition of a fine on the failure of any employer to comply with the requirements of this section.

(c) The amount of the fine imposed by subsection (b) of this section shall be equal to one hundred dollars ($100) for each day for each individual for which the failure occurs.

(d) No fine shall be imposed by subsection (b) if:

(1) the failure was due to reasonable cause and not willful neglect, and

(2) the failure is corrected during the thirty (30) day period (or such period as the director of the department of human services may determine appropriate) beginning on the first day any of the individuals whom the fine is imposed know, or exercising reasonable diligence would have known, that the failure existed. In the case of a failure which is due to reasonable cause and not to willful neglect, the director may waive part or all of the fine imposed by subsection (a) to the extent that the payment of the fine would be excessive relative to the failure involved.

(e) No employer may refuse to provide employee data information lawfully requested by the department of human services about specific employees whom the department had determined eligible or is in the process of determining eligibility to receive public health care benefits.

(f) As used in this section, the term "group health plan" has the meaning given the term in section 5000(b)(1) of the Internal Revenue Code of 1986, 26 U.S.C. section 5000(b)(1).

(g) A group health plan offered by an employer:

(1) May not take into account, for any item or services to be furnished to a recipient at the time the recipient is covered under the plan by reason of the current employment of that recipient (or the recipient's spouse), that the recipient is entitled to health care coverage as an element of their eligibility, and

(2) Shall provide that any recipient, and any recipient's spouse and minor dependents, shall be entitled to the same benefits under the plan under the same conditions as any employee, and the spouse and dependents of the employee.

(h) It is unlawful for an employer to offer any financial or other incentive for a recipient not to enroll (or to terminate enrollment) under a group health plan, unless the incentive is also offered to all individuals who are eligible for coverage under the plan. Any entity that violates the previous sentence is subject to a civil money penalty not to exceed five thousand dollars ($5,000) for each violation which may be imposed by the department of human services.

SECTION 3. This article shall take effect on July 1, 1998, and provided further that expansion of eligibility pursuant to 40-8.4-4(b) shall be provided beginning on the first day of the second month following the month of receipt by the Rhode Island Department of Human Services of federal approval of amendment of the RIte Care waiver project from the Secretary of the U.S. Department of Health and Human Services, provided however, that the Rhode Island Department of Human Services is authorized and directed to seek federal approvals upon passage of this act.

SECTION 1. Section 1-2-18 of the General Laws in Chapter 1-2 entitled "Airports and Landing Fields" is hereby amended to read as follows:

1-2-18. Payment for compensation for municipal services to the city of Warwick. -- The Rhode Island Airport Corporation, from a parking surcharge at the T.F. Green State Airport as defined by a 1988 agreement between the state acting by and through the director of transportation and the city of Warwick, shall pay to the city of Warwick out of the parking revenue received at T.F. Green State Airport as compensation for municipal services provided at T.F. Green State Airport, a sum of not less than two hundred seventy-five thousand dollars ($275,000) for fiscal year 1994 payable quarterly; for each fiscal year after 1994, such sum may be reviewed and/or renegotiated by the mayor of the city of Warwick and the Rhode Island Airport Corporation, but in no event will such sum be less than {DEL two DEL} {ADD five ADD} hundred {DEL seventy-five DEL} thousand dollars {DEL ($275,000) DEL} {ADD ($500,000) ADD} in any fiscal year, provided such payments provided or any portion thereof is not disapproved by the F.A.A. Provided further that beginning in fiscal year 1995, in the event that F.A.A. disapproves such payment from the R.I. Airport Corporation, the state of Rhode Island shall pay to the city of Warwick any sums of money {DEL which the R.I. Airport Corporation would have been obligated to pay if the F.A.A. had not disapproved such payments. DEL} {ADD required to insure that the city of Warwick receives two hundred and seventy five thousand dollars ($275,000). ADD}

SECTION 2. In light of the provisions of the Federal Airport Revenue Protection Act, a study group shall be created with a designee of the City of Warwick, the House Finance Committee Chairman or designee, the Senate Finance Committee Chairman or designee, the Executive Director of the Rhode Island Airport Corporation or designee, to study airport growth as it relates to compensation of the City of Warwick. The study group shall meet no later than September 1, 1998 and shall report its findings to the general assembly by December 31, 1998.

SECTION 3. This article shall take effect upon passage.

SECTION 1. This act shall take effect July 1, 1998, except as otherwise provided herein.

In articles where it is provided that the effective date shall be either "July 1, 1998" or "upon passage", and no provision is made for retroactive or prospective application, the effective date shall be July 1, 1998, and if the act is enacted after July 1, 1998, then the article shall be retroactive to July 1, 1998.

In articles where it is provided that the effective date shall be either "July 1, 1998" or "upon passage" and provision is made within the article for retroactive or prospective application, the article shall take effect on July 1, 1998 and its application made retroactive or prospective as set forth in the article.

SECTION 2. This article shall take effect upon passage.