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H7127 ======== LC004134 ======== 2026 -- H 7127 S T A T E O F R H O D E I S L A N D IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 A N A C T MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2027 Introduced By: Representative Marvin L. Abney Date Introduced: January 15, 2026 Referred To: House Finance (Governor) It is enacted by the General Assembly as follows: 1 ARTICLE 1 RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2 2027 3 ARTICLE 2 RELATING TO STATE FUNDS 4 ARTICLE 3 RELATING TO GOVERNMENT REFORM AND REORGANIZATION 5 ARTICLE 4 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS 6 ARTICLE 5 RELATING TO TAXES AND FEES 7 ARTICLE 6 RELATING TO CAPITAL DEVELOPMENT PROGRAM 8 ARTICLE 7 RELATING TO EDUCATION 9 ARTICLE 8 RELATING TO MEDICAL ASSISTANCE 10 ARTICLE 9 RELATING TO LEASES 11 ARTICLE 10 RELATING TO HEALTH AND HUMAN SERVICES 12 ARTICLE 11 RELATING TO AFFORDABILITY 13 ARTICLE 12 RELATING TO EFFECTIVE DATE ARTICLE 1 RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2027 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, 2027. The amounts identified for federal funds and restricted receipts shall be made available pursuant to § 35-4-22 and chapter 41 of title 42. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw the state controller’s 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 the state controller of properly authenticated vouchers. Administration Central Management General Revenues 4,006,929 Restricted Receipts 853,701 Total - Central Management 4,860,630 Legal Services General Revenues 2,998,750 Accounts and Control General Revenues 650,061 Restricted Receipts - OPEB Board Administration 100,000 Restricted Receipts - Grants Management Administration 1,726,550 Total - Accounts and Control 2,476,611 Office of Management and Budget General Revenues 11,156,879 Federal Funds Federal Funds 151,778 Federal Funds – Capital Projects Fund CPF Administration 668,915 Federal Funds – State Fiscal Recovery Fund Pandemic Recovery Office 682,668 Restricted Receipts 300,000 Other Funds 1,191,363 Total - Office of Management and Budget 14,151,603 Purchasing 1 General Revenues 2,411,346 2 Restricted Receipts 3,180,152 3 Other Funds 670,572 4 Total - Purchasing 6,262,070 5 Human Resources 6 General Revenues 701,698 7 Personnel Appeal Board 8 General Revenues 152,228 9 Information Technology 10 General Revenues 998,042 11 Restricted Receipts 1,124,485 12 Total - Information Technology 2,122,527 13 Library and Information Services 14 General Revenues 2,214,102 15 Federal Funds 1,639,564 16 Restricted Receipts 6,990 17 Total - Library and Information Services 3,860,656 18 Planning 19 General Revenues 1,126,048 20 Restricted Receipts 50,000 21 Other Funds 22 Air Quality Modeling 24,000 23 Federal Highway - PL Systems Planning 3,851,173 24 State Transportation Planning Match 670,918 25 FTA - Metro Planning Grant 1,571,094 26 Total - Planning 7,293,233 27 General 28 General Revenues 29 Miscellaneous Grants/Payments 3,980,821 30 Torts Court Awards 1,850,000 31 Wrongful Conviction Awards 900,000 32 Resource Sharing and State Library Aid 12,095,022 33 Library Construction Aid 2,097,515 34 Restricted Receipts 700,000 1 Other Funds 2 Rhode Island Capital Plan Funds 3 Security Measures State Buildings 950,000 4 Cranston Street Armory 100,000 5 State House Renovations 17,379,000 6 Zambarano Buildings and Campus 2,300,000 7 Replacement of Fueling Tanks 620,000 8 Environmental Compliance 225,000 9 Big River Management Area 746,000 10 Shepard Building Upgrades 3,920,000 11 RI Convention Center Authority 2,825,000 12 Pastore Center Power Plant 3,500,000 13 DoIT Enterprise Operations Center 3,700,000 14 Cannon Building 3,925,000 15 Old State House 600,000 16 State Office Building 975,000 17 State Office Reorganization & Relocation 750,000 18 William Powers Building 2,600,000 19 Pastore Center Non-Hospital Buildings Asset Protection 6,250,000 20 Washington County Government Center 200,000 21 Chapin Health Laboratory 300,000 22 560 Jefferson Blvd Asset Protection 50,000 23 Arrigan Center 100,000 24 Civic Center 1,250,000 25 Veterans Auditorium 275,000 26 Pastore Center Hospital Buildings Asset Protection 1,750,000 27 Pastore Campus Infrastructure 20,000,000 28 Community Facilities Asset Protection 1,425,043 29 Medical Examiners - New Facility 1,050,000 30 Group Home Replacement & Rehabilitation 5,000,000 31 Zambarano LTAC Hospital 2,000,000 32 Total - General 106,388,401 33 Debt Service Payments 34 General Revenues 176,670,576 1 Other Funds 2 Transportation Debt Service 27,630,704 3 Investment Receipts - Bond Funds 100,000 4 Total - Debt Service Payments 204,401,280 5 Rhode Island Health Benefits Exchange 6 General Revenues 11,383,620 7 Federal Funds 12,244,211 8 Restricted Receipts 18,363,602 9 Total - Rhode Island Health Benefits Exchange 41,991,433 10 Division of Equity, Diversity & Inclusion 11 General Revenues 2,198,317 12 Other Funds 116,324 13 Total - Division of Equity, Diversity & Inclusion 2,314,641 14 Capital Asset Management and Maintenance 15 General Revenues 9,922,655 16 Statewide Personnel and Operations 17 General Officer Transition Costs 18 General Revenues 464,000 19 Total - Statewide Personnel and Operations 464,000 20 Grand Total - Administration 410,362,416 21 Office of Energy Resources 22 Federal Funds 32,548,662 23 Restricted Receipts 38,536,799 24 Other Funds 25 National Electric Vehicle Infrastructure Formula Program 14,570,364 26 Rhode Island Capital Plan Funds 27 Energy Efficiency Improvements 1,000,000 28 Grand Total – Office of Energy Resources 86,655,825 29 Business Regulation 30 Central Management 31 General Revenues 4,188,236 32 Restricted Receipts 39,014 33 Total - Central Management 4,227,250 34 Banking Regulation 1 General Revenues 2,038,094 2 Restricted Receipts 100,000 3 Total - Banking Regulation 2,138,094 4 Securities Regulation 5 General Revenues 1,031,168 6 Insurance Regulation 7 General Revenues 5,406,581 8 Restricted Receipts 2,417,538 9 Total - Insurance Regulation 7,824,119 10 Office of the Health Insurance Commissioner 11 General Revenues 3,119,299 12 Federal Funds 552,446 13 Restricted Receipts 612,142 14 Total - Office of the Health Insurance Commissioner 4,283,887 15 Board of Accountancy 16 General Revenues 5,490 17 Commercial Licensing and Gaming and Athletics Licensing 18 General Revenues 1,301,739 19 Restricted Receipts 1,277,843 20 Total - Commercial Licensing and Gaming and Athletics Licensing 2,579,582 21 Building, Design and Fire Professionals 22 General Revenues 9,290,874 23 Federal Funds 344,288 24 Restricted Receipts 3,113,579 25 Other Funds 26 Quonset Development Corporation 68,580 27 Rhode Island Capital Plan Funds 28 Fire Academy Expansion 962,000 29 Total - Building, Design and Fire Professionals 13,779,321 30 Grand Total - Business Regulation 35,868,911 31 RI Cannabis Control Commission 32 Restricted Receipts 7,964,425 33 Executive Office of Commerce 34 Central Management 1 General Revenues 3,167,540 2 Quasi-Public Appropriations 3 General Revenues 4 Rhode Island Commerce Corporation 8,506,041 5 Airport Impact Aid 1,010,036 Sixty percent (60%) of the first $1,000,000 appropriated for airport impact aid shall be distributed to each airport serving more than 1,000,000 passengers based upon its percentage of the total passengers served by all airports serving more than 1,000,000 passengers. Forty percent (40%) of the first $1,000,000 shall be distributed based on the share of landings during calendar year 2026 at North Central Airport, Newport-Middletown Airport, Block Island Airport, Quonset Airport, T.F. Green International Airport and Westerly Airport, respectively. The Rhode Island commerce corporation shall make an impact payment to the towns or cities in which the airport is located based on this calculation. Each community upon which any part of the above airports is located shall receive at least $25,000. 15 STAC Research Alliance 900,000 16 Innovative Matching Grants/Internships 1,000,000 17 I-195 Redevelopment District Commission 1,245,050 18 Polaris Manufacturing Grant 500,000 19 East Providence Waterfront Commission 50,000 20 Urban Ventures 140,000 21 Chafee Center at Bryant 476,200 22 Blackstone Valley Visitor Center 75,000 23 Industrial Recreational Building Authority Obligations 105,094 24 Other Funds 25 Rhode Island Capital Plan Funds 26 I-195 Redevelopment District Commission 1,000,000 27 I-195 Park Improvements 500,000 28 Quonset Infrastructure 2,500,000 29 Total - Quasi-Public Appropriations 18,007,421 30 Economic Development Initiatives Fund 31 General Revenues 32 Rebuild RI Tax Credit Fund 6,100,000 33 Destination Marketing 1,500,000 34 Federal Funds 21,292,601 1 Total - Economic Development Initiatives Fund 28,892,601 2 Commerce Programs 3 General Revenues 4 Wavemaker Fellowship 1,016,621 5 Air Service Development Fund 2,728,800 6 Main Street RI Streetscape Improvement Fund 1,000,000 7 Total - Commerce Programs 4,745,421 8 Grand Total - Executive Office of Commerce 54,812,983 9 Housing 10 General Revenues 8,343,617 11 Provided that $100,000 shall support Sojourner House’s supportive housing and rapid 12 rehousing activities. 13 Federal Funds 19,300,731 14 Restricted Receipts 23,018,954 15 Other Funds 16 Rhode Island Capital Plan Funds 17 Housing Asset Protection 1,700,000 18 Grand Total - Housing 52,363,302 19 Labor and Training 20 Central Management 21 General Revenues 1,457,908 22 Restricted Receipts 423,851 23 Total - Central Management 1,881,759 24 Workforce Development Services 25 General Revenues 884,194 26 Federal Funds 17,651,272 27 Total - Workforce Development Services 18,535,466 28 Workforce Regulation and Safety 29 General Revenues 5,558,728 30 Income Support 31 General Revenues 3,733,778 32 Federal Funds 24,274,004 33 Restricted Receipts 5,047,984 34 Other Funds 1 Temporary Disability Insurance Fund 299,751,826 2 Employment Security Fund 296,100,000 3 Total - Income Support 628,907,592 4 Injured Workers Services 5 Restricted Receipts 12,566,297 6 Labor Relations Board 7 General Revenues 647,572 8 Governor’s Workforce Board 9 General Revenues 6,050,000 Provided that $600,000 of these funds shall be used for enhanced training for direct care and support services staff to improve resident quality of care and address the changing health care needs of nursing facility residents due to higher acuity and increased cognitive impairments pursuant to § 23-17.5-36. Restricted Receipts 18,984,326 Provided that at least $150,000 of these funds shall be used to provide hospitality industry workforce training grants including, but not limited to, certified food and alcohol safety training programs offered in multiple languages. 18 Total - Governor’s Workforce Board 25,034,326 19 Grand Total - Labor and Training 693,131,740 20 Department of Revenue 21 Director of Revenue 22 General Revenues 2,929,554 23 Office of Revenue Analysis 24 General Revenues 1,203,684 25 Lottery Division 26 Other Funds 433,759,131 27 Municipal Finance 28 General Revenues 2,068,751 29 Taxation 30 General Revenues 39,387,176 31 Restricted Receipts 3,293,102 32 Other Funds 33 Motor Fuel Tax Evasion 175,000 34 Total - Taxation 42,855,278 1 Registry of Motor Vehicles 2 General Revenues 36,068,291 3 Federal Funds 300,000 4 Restricted Receipts 5,629,330 5 Total - Registry of Motor Vehicles 41,997,621 6 State Aid 7 General Revenues 8 Distressed Communities Relief Fund 14,884,458 9 Payment in Lieu of Tax Exempt Properties 49,049,142 10 Motor Vehicle Excise Tax Payments 239,550,236 11 Property Revaluation Program 826,038 12 Tangible Tax Exemption Program 25,908,469 13 Restricted Receipts 1,125,000 14 Total - State Aid 331,343,343 15 Collections 16 General Revenues 1,134,318 17 Grand Total - Revenue 857,291,680 18 Legislature 19 General Revenues 61,280,709 20 Restricted Receipts 2,785,548 21 Grand Total - Legislature 64,066,257 22 Lieutenant Governor 23 General Revenues 1,574,369 24 Secretary of State 25 Administration 26 General Revenues 6,097,668 27 Provided that $100,000 be allocated to support the Rhode Island Council for the 28 Humanities for grant making to civic and cultural organizations, and $50,000 to support Rhode 29 Island’s participation in the We the People Civics Challenge. 30 Corporations 31 General Revenues 2,794,958 32 State Archives 33 General Revenues 475,184 34 Restricted Receipts 393,474 1 Total - State Archives 868,658 2 Elections and Civics 3 General Revenues 3,117,860 4 Federal Funds 2,000,000 5 Total - Elections and Civics 5,117,860 6 State Library 7 General Revenues 680,710 8 Provided that $125,000 be allocated to support the Rhode Island Historical Society and 9 $18,000 be allocated to support the Newport Historical Society, pursuant to §§ 29-2-1 and 29-2-2, 10 and $25,000 be allocated to support the Rhode Island Black Heritage Society. 11 Office of Public Information 12 General Revenues 674,705 13 Receipted Receipts 25,000 14 Total - Office of Public Information 699,705 15 Grand Total - Secretary of State 16,259,559 16 General Treasurer 17 Treasury 18 General Revenues 3,465,294 19 Federal Funds 365,991 20 Other Funds 21 Temporary Disability Insurance Fund 252,905 22 Tuition Savings Program - Administration 377,716 23 Total - Treasury 4,461,906 24 State Retirement System 25 Restricted Receipts 26 Admin Expenses - State Retirement System 13,397,239 27 Retirement - Treasury Investment Operations 3,108,665 28 Defined Contribution - Administration 263,124 29 Total - State Retirement System 16,769,028 30 Unclaimed Property 31 Restricted Receipts 3,437,867 32 Crime Victim Compensation 33 General Revenues 952,526 34 Federal Funds 467,993 1 Restricted Receipts 228,827 2 Total - Crime Victim Compensation 1,649,346 3 Grand Total - General Treasurer 26,318,147 4 Board of Elections 5 General Revenues 9,147,157 6 Rhode Island Ethics Commission 7 General Revenues 2,556,898 8 Office of Governor 9 General Revenues 10 General Revenues 9,480,312 11 Contingency Fund 150,000 12 Grand Total - Office of Governor 9,630,312 13 Commission for Human Rights 14 General Revenues 2,358,433 15 Federal Funds 443,446 16 Grand Total - Commission for Human Rights 2,801,879 17 Public Utilities Commission 18 Federal Funds 759,025 19 Restricted Receipts 15,258,327 20 Grand Total - Public Utilities Commission 16,017,352 21 Executive Office of Health and Human Services 22 Central Management 23 General Revenues 94,942,371 Of this amount, $900,000 is to provide mobile response and stabilization services for uninsured and underinsured child and youth and cover services and costs not otherwise reimbursed; 26 and $600,000 is for Planned Parenthood. 27 Federal Funds 254,983,208 28 Restricted Receipts 7,277,708 29 Total - Central Management 357,203,287 30 Medical Assistance 31 General Revenues 32 Managed Care 479,954,645 33 Hospitals 147,921,080 34 Nursing Facilities 200,251,776 1 Home and Community Based Services 128,212,807 2 Other Services 128,214,236 3 Pharmacy 98,981,507 4 Rhody Health 271,026,029 5 Federal Funds 6 Managed Care 680,237,625 7 Hospitals 293,608,369 8 Nursing Facilities 273,484,597 9 Home and Community Based Services 175,128,285 10 Other Services 734,939,712 11 Pharmacy 418,493 12 Rhody Health 386,619,266 13 Other Programs 45,400,000 14 Restricted Receipts 7,350,000 15 Total - Medical Assistance 4,051,748,427 16 Grand Total – Executive Office of Health and Human Services 4,408,951,714 17 Children, Youth and Families 18 Central Management 19 General Revenues 20,380,243 20 Federal Funds 13,745,250 21 Total - Central Management 34,125,493 22 Children s Behavioral Health Services 23 General Revenues 9,152,509 24 Federal Funds 8,693,793 25 Total - Children s Behavioral Health Services 17,846,302 26 Youth Development Services 27 General Revenues 27,165,270 28 Federal Funds 142,202 29 Other Funds 30 Rhode Island Capital Plan Funds 31 Training School Asset Protection 250,000 32 Psychiatric Residential Treatment Facility Modifications 22,500,000 33 Total - Youth Development Services 50,057,472 34 Child Welfare General Revenues 211,367,235 Federal Funds 90,620,047 Restricted Receipts 1,670,684 Total - Child Welfare 303,657,966 Higher Education Incentive Grants General Revenues 200,000 Provided that these funds and any unexpended or unencumbered previous years’ funding are to be used exclusively to fund awards to eligible youth. Grand Total - Children, Youth and Families 405,887,233 Health Central Management General Revenues General Revenues 2,175,312 Of this amount, $50,000 is to support the Gloria Gemma Breast Cancer Resource Foundation and the organization’s new survivorship and well-being center in Lincoln, RI. Psychiatry Resource Network 750,278 Federal Funds 4,545,892 Restricted Receipts 20,674,069 Total - Central Management 28,145,551 Community Health and Equity General Revenues 2,075,952 Federal Funds 88,026,519 Restricted Receipts 63,187,377 Total - Community Health and Equity 153,289,848 Environmental Health General Revenues 7,058,661 Federal Funds 14,034,394 Restricted Receipts 1,011,757 Total - Environmental Health 22,104,812 Health Laboratories General Revenues 10,704,871 Federal Funds 2,627,831 Other Funds Rhode Island Capital Plan Funds 1 Health Laboratories & Medical Examiner Equipment 400,000 2 Total - Health Laboratories 13,732,702 3 State Medical Examiners 4 General Revenues 4,559,163 5 Federal Funds 67,325 6 Total – State Medical Examiners 4,626,488 7 Healthcare Quality and Safety 8 General Revenues 10,298,205 9 Federal Funds 7,529,889 10 Restricted Receipts 1,067,007 11 Total – Healthcare Quality and Safety 18,895,101 12 Policy, Information and Communications 13 General Revenues 2,819,000 Provided that $200,000 of this amount and its corresponding federal match is used for loan repayment assistance specifically for primary care physicians and pediatricians through the Health 16 Professional Loan Repayment Program authorized by § 23-14.1. 17 Federal Funds 5,606,211 18 Restricted Receipts 839,044 19 Total - Policy, Information and Communications 9,264,255 20 Emergency Preparedness and Infectious Disease 21 General Revenues 2,110,829 22 Federal Funds 17,782,327 23 Total – Emergency Preparedness and Infectious Disease 19,893,156 24 COVID-19 25 Federal Funds 7,519,108 26 Grand Total - Health 277,471,021 27 Human Services 28 Central Management 29 General Revenues 7,784,531 Of this amount, $400,000 is to support the domestic violence prevention fund to provide direct services through the Coalition Against Domestic Violence, $25,000 for the Center for Southeast Asians, $450,000 to support Project Reach activities provided by the RI Alliance of Boys and Girls Clubs, $300,000 is for outreach and supportive services through Day One, $1,950,000 is for food collection and distribution through the Rhode Island Community Food Bank of which $250,000 will be utilized to provide sub awards to other community food organizations, $500,000 for services provided to the homeless at Crossroads Rhode Island, $600,000 for the Community Action Fund, $250,000 is for the Institute for the Study and Practice of Nonviolence’s Reduction Strategy, $200,000 to provide operational support to the United Way’s 211 system, $150,000 is to support services provided to the immigrant and refugee population through Higher Ground International, $50,000 is for services provided to refugees through the Refugee Dream Center, $150,000 for the Substance Use and Mental Health Leadership Council of RI, $25,000 for services provided by Oasis International, and $25,000 for services provided by New Bridges for Haitian Success Federal Funds 8,020,512 Of this amount, $3.0 million is to sustain Early Head Start and Head Start programs. Restricted Receipts 470,000 Total - Central Management 16,275,043 Child Support Enforcement General Revenues 4,586,917 Federal Funds 9,060,380 Restricted Receipts 4,107,870 Total - Child Support Enforcement 17,755,167 Individual and Family Support General Revenues 45,895,483 Federal Funds 118,670,234 Restricted Receipts 100,000 Other Funds Rhode Island Capital Plan Funds Blind Vending Facilities 165,000 Total - Individual and Family Support 164,830,717 Office of Veterans Services General Revenues 37,094,041 Of this amount, $200,000 is to provide support services through veterans’ organizations, $50,000 is to support Operation Stand Down, and $100,000 is to support the Veterans Services Officers (VSO) program through the Veterans of Foreign Wars. Federal Funds 15,980,199 Restricted Receipts 1,410,115 Other Funds Rhode Island Capital Plan Funds Veterans Home Asset Protection 977,240 3 Veterans Memorial Cemetery Asset Protection 260,000 4 Total - Office of Veterans Services 55,721,595 5 Health Care Eligibility 6 General Revenues 12,476,503 7 Federal Funds 18,943,937 8 Total - Health Care Eligibility 31,420,440 9 Supplemental Security Income Program 10 General Revenues 16,569,000 11 Rhode Island Works 12 General Revenues 9,784,221 13 Federal Funds 109,507,861 14 Total - Rhode Island Works 119,292,082 15 Other Programs 16 General Revenues 2,452,648 17 Federal Funds 338,010,465 18 Restricted Receipts 8,000 19 Total - Other Programs 340,471,113 20 Office of Healthy Aging 21 General Revenues 15,147,684 22 Of this amount, $325,000 is to provide elder services, including respite, through the Diocese of Providence; $40,000 is for ombudsman services provided by the Alliance for Long Term Care in accordance with chapter 66.7 of title 42; and $1,800,000 is for Senior Services Support and $730,000 is for elderly nutrition, of which $680,000 is for Meals on Wheels. Federal Funds 17,698,161 Restricted Receipt 266,979 Other Funds Intermodal Surface Transportation Fund 4,651,722 The Office shall reimburse the Rhode Island public transit authority for the elderly/disabled transportation program expenses no later than fifteen (15) days of the authority’s submission of a request for payment. Total - Office of Healthy Aging 37,764,546 Grand Total - Human Services 800,099,703 1 Behavioral Healthcare, Developmental Disabilities and Hospitals 2 Central Management 3 General Revenues 10,757,305 4 Federal Funds 1,858,106 5 Restricted Receipts 1,836,349 6 Other Funds 7 Rhode Island Capital Plan Funds 8 Group Home Maintenance 5,000,000 9 Total - Central Management 19,451,760 10 Services for the Developmentally Disabled 11 General Revenues 232,730,377 12 Federal Funds 307,121,997 13 Restricted Receipts 1,300,866 14 Other Funds 15 Rhode Island Capital Plan Funds 16 DD Residential Support 100,000 17 Total - Services for the Developmentally Disabled 541,253,240 18 Behavioral Healthcare Services 19 General Revenues 6,415,175 20 Federal Funds 21 Federal Funds 26,980,137 22 Provided that $250,000 from Social Services Block Grant funds is awarded to The 23 Providence Center to coordinate with Oasis Wellness and Recovery Center for its support and 24 services program offered to individuals with behavioral health issues. 25 Restricted Receipts 4,180,094 Provided that $500,000 from the opioid stewardship fund is distributed equally to the seven regional substance abuse prevention task forces to fund priorities determined by each task force. 28 Total - Behavioral Healthcare Services 37,575,406 29 Hospital and Community Rehabilitative Services 30 General Revenues 49,312,542 31 Federal Funds 67,868,247 32 Restricted Receipts 4,817,874 33 Other Funds 34 Rhode Island Capital Plan Funds 1 Hospital Equipment 300,000 2 Total - Hospital and Community Rehabilitative Services 122,298,663 3 State of RI Psychiatric Hospital 4 General Revenues 34,884,686 5 Restricted Receipts 144,000 6 Other Funds 7 Rhode Island Capital Plan Funds 8 RISPH Equipment 100,000 9 Total - State of RI Psychiatric Hospital 35,128,686 10 Grand Total - Behavioral Healthcare, 11 Developmental Disabilities and Hospitals 755,707,755 12 Office of the Child Advocate 13 General Revenues 2,405,487 14 Commission on the Deaf and Hard of Hearing 15 General Revenues 835,904 16 Restricted Receipts 118,177 17 Grand Total - Comm. On Deaf and Hard-of-Hearing 954,081 18 Governor’s Commission on Disabilities 19 General Revenues 20 General Revenues 907,021 21 Livable Home Modification Grant Program 515,278 Provided that this will be used for home modification and accessibility enhancements to construct, retrofit, and/or renovate residences to allow individuals to remain in community settings. This will be in consultation with the executive office of health and human services. All unexpended or unencumbered balances, at the end of the fiscal year, shall be reappropriated to the ensuing fiscal 26 year, and made immediately available for the same purpose. 27 Federal Funds 340,092 28 Restricted Receipts 67,190 29 Grand Total - Governor’s Commission on Disabilities 1,829,581 30 Office of the Mental Health Advocate 31 General Revenues 1,111,709 32 Elementary and Secondary Education 33 Administration of the Comprehensive Education Strategy 34 General Revenues 36,620,345 Provided that $90,000 be allocated to support the hospital school at Hasbro Children’s Hospital pursuant to § 16-7-20; $395,000 be allocated to support child opportunity zones through agreements with the department of elementary and secondary education to strengthen education, health and social services for students and their families as a strategy to accelerate student achievement; $450,000 and 3.0 full-time equivalent positions be allocated to support a special education function to facilitate individualized education program (IEP) and 504 services; and further provided that $130,000 be allocated to City Year for the Whole School Whole Child Program, which provides individualized support to at-risk students. Provided further that $2,000,000 shall be allocated for the Learn365RI program, of which $100,000 shall be allocated to the Rhode Island Afterschool Network; $100,000 shall be allocated to Teach for America Ignite; and $100,000 shall be allocated to Onward We Learn. Provided further that $684,000 shall be allocated to the Paul V. Sherlock Center on Disabilities to support the Rhode Island Vision Education and Services Program. Federal Funds Federal Funds 258,048,406 Restricted Receipts Restricted Receipts 1,839,203 HRIC Adult Education Grants 3,500,000 Other Funds Rhode Island Capital Plan Funds Norwell Academy Facility Feasibility Study 150,000 Total - Admin. of the Comprehensive Ed. Strategy 300,157,954 Davies Career and Technical School General Revenues 21,082,757 Federal Funds 954,525 Restricted Receipts 4,932,231 Other Funds Rhode Island Capital Plan Funds Davies School HVAC 100,000 Davies School Asset Protection 750,000 Davies School Wing Renovation 23,500,000 Total - Davies Career and Technical School 51,319,513 RI School for the Deaf General Revenues 9,039,339 1 Federal Funds 225,365 2 Restricted Receipts 1,597,000 3 Other Funds 4 Rhode Island Capital Plan Funds 5 School for the Deaf Asset Protection 968,691 6 Total - RI School for the Deaf 11,830,395 7 Metropolitan Career and Technical School 8 General Revenues 14,669,329 9 Other Funds 10 Rhode Island Capital Plan Funds 11 MET School Asset Protection 250,000 12 Total - Metropolitan Career and Technical School 14,919,329 13 Education Aid 14 General Revenues 1,292,587,560 Provided that the criteria for the allocation of early childhood funds shall prioritize pre- kindergarten seats and classrooms for four-year - olds whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines and who reside in communities 18 with higher concentrations of low performing schools. 19 Restricted Receipts 49,781,920 20 Total - Education Aid 1,342,369,480 21 Central Falls School District 22 General Revenues 53.683,500 23 School Construction Aid 24 General Revenues 25 School Housing Aid 102,869,291 26 Teachers Retirement 27 General Revenues 130,236,201 28 Grand Total - Elementary and Secondary Education 2,007,385,663 29 Public Higher Education 30 Office of Postsecondary Commissioner 31 General Revenues 36,172,492 Provided that $455,000 shall be allocated to Onward We Learn pursuant to § 16-70-5, $75,000 shall be allocated to Best Buddies Rhode Island to support its programs for children with developmental and intellectual disabilities. It is also provided that $8,061,950 shall be allocated to the Rhode Island promise scholarship program; $151,410 shall be used to support Rhode Island’s membership in the New England Board of Higher Education; $7,062,826 shall be allocated to the Rhode Island hope scholarship program; and $100,000 shall be allocated to the Rhode Island School for Progressive Education to support access to higher education opportunities for teachers of color. Federal Funds 7 Federal Funds 5,377,602 8 Restricted Receipts 9 Restricted Receipts 8,358,299 10 Tuition Savings Program - Scholarships and Grants 3,460,000 11 Other Funds 12 Nursing Education Center - Operating 3,494,558 13 Rhode Island Capital Plan Funds 14 WEC Expansion - Annex Site 160,000 15 Total - Office of Postsecondary Commissioner 57,022,951 16 University of Rhode Island 17 General Revenues 18 General Revenues 119,473,120 Provided that in order to leverage federal funding and support economic development, $700,000 shall be allocated to the small business development center, $125,000 shall be allocated to the Institute for Labor Studies & Research, $50,000 shall be allocated to Special Olympics Rhode Island to support its mission of providing athletic opportunities for individuals with intellectual and developmental disabilities. 24 Debt Service 32,853,856 25 RI State Forensics Laboratory 2,436,958 26 Other Funds 27 University and College Funds 860,035,628 28 Debt - Dining Services 744,557 29 Debt - Education and General 7,824,231 30 Debt - Health Services 6,148 31 Debt - Housing Loan Funds 14,186,125 32 Debt - Memorial Union 291,069 33 Debt - Ryan Center 2,363,789 34 Debt - Parking Authority 1,408,483 URI Restricted Debt Service - Energy Conservation 369,780 URI Debt Service - Energy Conservation 1,349,620 Rhode Island Capital Plan Funds Asset Protection 15,236,863 Mechanical, Electric, and Plumbing Improvements 6,217,170 Fire Protection Academic Buildings 1,323,475 Bay Campus 16,853,278 Athletics Complex 21,361,818 Provided that total Rhode Island capital plan funds provide no more than 80.0 percent of the total project. Stormwater Management 1,437,519 PFAS Removal Water Treatment Plant 11,661,319 Campus Accessibility 1,700,000 Campus Access Control 1,575,000 Building Envelope Improvements 3,000,000 Total - University of Rhode Island 1,123,709,806 Notwithstanding the provisions of § 35-3-15, all unexpended or unencumbered balances as of June 30, 2027 relating to the university of Rhode Island are hereby reappropriated to fiscal year 2028. Rhode Island College General Revenues General Revenues 72,723,265 Debt Service 9,159,563 Rhode Island Vision Education and Services Program 1,800,000 Other Funds University and College Funds 135,027,602 Debt - Education and General 715,825 Debt - Student Union 212,025 Debt - Energy Conservation 785,625 Rhode Island Capital Plan Funds Asset Protection 6,500,000 Infrastructure Modernization 5,675,000 Total - Rhode Island College 232,598,905 Notwithstanding the provisions of § 35-3-15, all unexpended or unencumbered balances as of June 30, 2027, relating to Rhode Island college are hereby reappropriated to fiscal year 2028. Community College of Rhode Island General Revenues 4 General Revenues 65,696,149 5 Debt Service 934,564 6 Restricted Receipts 998,534 7 Other Funds 8 University and College Funds 127,734,928 9 Rhode Island Capital Plan Funds 10 Asset Protection 3,369,452 11 Data, Cabling, and Power Infrastructure 5,500,000 12 Flanagan Campus Renovations 3,600,605 13 CCRI Renovation and Modernization Phase I 13,499,928 14 CCRI Renovation and Modernization Phase II - IV 2,240,000 15 CCRI Accessibility Improvements 125,000 16 Total - Community College of RI 223,699,060 Notwithstanding the provisions of § 35-3-15, all unexpended or unencumbered balances as of June 30, 2027, relating to the community college of Rhode Island are hereby reappropriated to fiscal year 2028. Grand Total - Public Higher Education 1,637,030,722 RI State Council on the Arts General Revenues Operating Support 1,370,565 Grants 1,240,000 Provided that $400,000 be provided to support the operational costs of WaterFire Providence art installations. Federal Funds 1,160,576 Other Funds 29 Art for Public Facilities 742,000 30 Grand Total - RI State Council on the Arts 4,513,141 31 RI Atomic Energy Commission 32 General Revenues 1,316,004 33 Restricted Receipts 25,036 34 Other Funds URI Sponsored Research 335,818 Rhode Island Capital Plan Funds Asset Protection 50,000 Grand Total - RI Atomic Energy Commission 1,726,858 RI Historical Preservation and Heritage Commission General Revenues 2,097,428 Provided that $30,000 support the operational costs of the Fort Adams Trust’s restoration activities and that $25,000 shall be allocated to Rhode Island Slave History Medallions. Federal Funds 893,987 Restricted Receipts 511,827 Other Funds RIDOT Project Review 148,449 Grand Total - RI Historical Preservation and Heritage Comm. 3,651,691 Attorney General Criminal General Revenues 24,153,594 Federal Funds 3,089,426 Restricted Receipts 1,821,874 Total - Criminal 29,064,894 Civil General Revenues 6,672,679 Federal Funds 132,429 Restricted Receipts 4,939,129 24 Total - Civil 11,744,237 Bureau of Criminal Identification General Revenues 2,563,440 Restricted Receipts 1,344,780 Total - Bureau of Criminal Identification 3,908,220 General General Revenues 5,979,584 Other Funds Rhode Island Capital Plan Funds Building Renovations and Repairs 1,150,000 Total - General 7,129,584 1 Grand Total - Attorney General 51,846,935 2 Corrections 3 Central Management 4 General Revenues 27,233,892 5 Parole Board 6 General Revenues 1,668,186 7 Custody and Security 8 General Revenues 187,294,597 9 Federal Funds 2,267,867 10 Other Funds 11 Rhode Island Capital Plan Funds 12 Intake Service Center HVAC 5,476,281 13 Total - Custody and Security 195,038,745 14 Institutional Support 15 General Revenues 39,460,059 16 Other Funds 17 Rhode Island Capital Plan Funds 18 Asset Protection 6,200,000 19 Total - Institutional Support 45,660,059 20 Institutional Based Rehab/Population Management 21 General Revenues 15,076,622 22 Provided that $1,050,000 be allocated to Crossroads Rhode Island for sex offender 23 discharge planning. The director of the department of corrections shall provide to the speaker of the house and president of the senate at least every ninety (90) days beginning September 1, 2022, a report on efforts to modernize the correctional industries program. The report shall, at minimum, provide data on the past ninety (90) days regarding program participation; changes made in programming to more closely align with industry needs; new or terminated partnerships with employers, nonprofits, and advocacy groups; current program expenses and revenues; and the employment status of all persons on the day of discharge from department care who participated in the correctional industries program. Federal Funds 449,585 Restricted Receipts 1,250,000 Total - Institutional Based Rehab/Population Mgt. 16,776,207 1 Healthcare Services 2 General Revenues 40,978,629 3 Community Corrections 4 General Revenues 23,317,069 5 Restricted Receipts 3,091 6 Total - Community Corrections 23,320,160 7 Grand Total - Corrections 350,675,878 8 Judiciary 9 Supreme Court 10 General Revenues 11 General Revenues 40,098,334 Provided however, that no more than $1,393,545 in combined total shall be offset to the public defender’s office, the attorney general’s office, the department of corrections, the department of children, youth and families, and the department of public safety for square-footage occupancy costs in public courthouses and further provided that $500,000 be allocated to the Rhode Island Coalition Against Domestic Violence for the domestic abuse court advocacy project pursuant to § 12-29-7 and that $90,000 be allocated to Rhode Island Legal Services, Inc. to provide housing and 18 eviction defense to indigent individuals. 19 Defense of Indigents 7,875,432 20 Federal Funds 133,368 21 Restricted Receipts 4,296,657 22 Other Funds 23 Rhode Island Capital Plan Funds 24 Judicial Complexes - HVAC 500,000 25 Judicial Complexes Asset Protection 1,500,000 26 Judicial Complexes Fan Coil Unit Replacements 750,000 27 Garrahy Courthouse Restoration 1,125,000 28 Total - Supreme Court 56,278,791 29 Judicial Tenure and Discipline 30 General Revenues 190,901 31 Superior Court 32 General Revenues 31,068,969 33 Restricted Receipts 325,000 34 Total - Superior Court 31,393,969 1 Family Court 2 General Revenues 29,964,439 3 Federal Funds 5,061,224 4 Total - Family Court 35,025,663 5 District Court 6 General Revenues 18,246,180 7 Federal Funds 223,404 8 Restricted Receipts 60,000 9 Total - District Court 18,529,584 10 Traffic Tribunal 11 General Revenues 12,022,509 12 Workers Compensation Court 13 Restricted Receipts 12,073,439 14 Grand Total - Judiciary 165,514,856 15 Military Staff 16 General Revenues 3,634,593 17 Federal Funds 45,498,537 18 Restricted Receipts 19 RI Military Family Relief Fund 55,000 20 RING Counterdrug Program 11,000 21 Other Funds 22 Rhode Island Capital Plan Funds 23 Aviation Readiness Center 7,603,990 24 Asset Protection 1,592,912 25 Grand Total - Military Staff 58,396,032 26 Public Safety 27 Central Management 28 General Revenues 2,498,706 Provided that $400,000 shall be allocated to support the Family Service of Rhode Island’s GO Team program of on-scene support to children who are victims of violence and other traumas. Federal Funds Federal Funds 9,707,021 Federal Funds – State Fiscal Recovery Fund Support for Survivors of Domestic Violence 64,786 1 Restricted Receipts 849,625 2 Total - Central Management 13,120,138 3 E-911 Emergency Telephone System 4 Restricted Receipts 10,527,015 5 Security Services 6 General Revenues 34,657,887 7 Municipal Police Training Academy 8 General Revenues 343,234 Provided that of this amount $75,000 shall be for administrative, information technology, and operating expenses incurred by the Rhode Island Police Officers Commission on Standards 191,992 13 Restricted Receipts 75,000 14 Total - Municipal Police Training Academy 610,226 15 State Police 16 General Revenues 99,217,318 17 Federal Funds 6,159,398 18 Restricted Receipts 3,336,961 19 Other Funds 20 Airport Corporation Assistance 150,283 21 Road Construction Reimbursement 4,355,100 22 Weight and Measurement Reimbursement 647,705 23 Rhode Island Capital Plan Funds 24 DPS Asset Protection 1,345,000 25 Training Academy Upgrades 670,000 26 Total - State Police 115,881,765 27 Grand Total - Public Safety 174,797,031 28 Office of Public Defender 29 General Revenues 18,765,889 30 Federal Funds 85,035 31 Grand Total - Office of Public Defender 18,850,924 32 Emergency Management Agency 33 General Revenues 8,375,436 34 Federal Funds 51,235,300 and Training (POST). Federal Funds 1 Restricted Receipts 417,066 2 Other Funds 3 Rhode Island Capital Plan Funds 4 RI Statewide Communications Infrastructure 330,000 5 Mobile Command Post 3,218,908 6 Grand Total - Emergency Management Agency 63,576,710 7 Environmental Management 8 Office of the Director 9 General Revenues 10,509,829 Of this general revenue amount, $180,000 is appropriated to the conservation districts and $100,000 is appropriated to the Wildlife Rehabilitators Association of Rhode Island for a veterinarian at the Wildlife Clinic of Rhode Island. Federal Funds 376,495 Restricted Receipts 7,343,683 15 Total - Office of the Director 18,230,007 16 Natural Resources 17 General Revenues 32,814,994 18 Provided that of this general revenue amount, $150,000 is to be used for marine mammal 19 response activities in conjunction with matching federal funds. 20 Federal Funds 37,410,677 21 Restricted Receipts 6,962,400 22 Other Funds 23 DOT Recreational Projects 789,122 24 Blackstone Bike Path Design 1,000,000 25 Rhode Island Capital Plan Funds 26 Dam Repair 5,593,450 27 Fort Adams Rehabilitation 500,000 28 Port of Galilee 10,693,637 29 Newport Pier Upgrades 500,000 30 Recreation Facilities Asset Protection 750,000 31 Recreational Facilities Improvements 4,586,260 32 Natural Resources Office and Visitor s Center 1,586,709 33 Fish & Wildlife Maintenance Facilities 200,000 34 Marine Infrastructure/Pier Development 500,000 1 Total - Natural Resources 103,887,249 2 Environmental Protection 3 General Revenues 17,290,819 4 Federal Funds 13,416,965 5 Restricted Receipts 12,981,563 6 Other Funds 7 Transportation MOU 61,877 8 Total - Environmental Protection 43,751,224 9 Grand Total - Environmental Management 165,868,480 10 Coastal Resources Management Council 11 General Revenues 4,324,771 12 Federal Funds 3,151,314 13 Restricted Receipts 335,811 14 Other Funds 15 Rhode Island Capital Plan Funds 16 Confined Aquatic Dredged Material Disposal Cells 11,380,000 17 Grand Total - Coastal Resources Mgmt. Council 19,191,896 18 Transportation 19 Central Management 20 Federal Funds 13,891,263 21 Other Funds 22 Gasoline Tax 8,591,864 23 Total - Central Management 22,483,127 24 Management and Budget 25 Other Funds 26 Gasoline Tax 5,768,852 27 Infrastructure Engineering 28 Federal Funds 29 Federal Funds 765,215,089 30 Federal Funds – State Fiscal Recovery Fund 31 Washington Bridge Project 74,583 32 Restricted Receipts 4,459,559 33 Other Funds 34 Gasoline Tax 78,204,432 Provided that of this amount, $10,000,000 is appropriated to the Municipal Roads Grant Program known as RhodeRestore to provide funding to municipalities for the construction and maintenance of roads, sidewalks, and bridges. Provided that twenty-five percent (25%) of the funds shall be distributed equally to each city and town, and seventy-five percent (75%) shall be allocated proportionally based on each municipality’s share of municipally maintained road miles, as determined by the most recent data available from the Rhode Island department of transportation. Provided further that each municipality is required to provide a sixty-seven percent (67%) match. Provided further that, at the discretion of the department, a portion of these funds may be used for state sidewalk projects identified by the municipality and prioritized in collaboration with the department, subject to a matching requirement to be established by the department. Provided further that of this amount, sufficient funds from the Rhode Island public transit authority’s share of gasoline tax proceeds shall be allocated to the state paratransit program, including the expansion pilot program known as ride anywhere to ensure statewide paratransit services are maintained. Land Sale Revenue 6,113,850 Tolling Revenue 20,000,000 Rhode Island Capital Plan Funds Highway Improvement Program 46,250,000 RIPTA - Kingston Station Mobility Hub 840,000 RIPTA - Pawtucket Bus Hub 63,428 RIPTA - Bus Purchases 3,500,000 Bike Path Asset Protection 400,000 RIPTA - Land and Buildings 1,590,125 Total - Infrastructure Engineering 926,711,066 Infrastructure Maintenance Other Funds Gasoline Tax 44,201,784 The department of transportation will establish a municipal roadway database, which will include information concerning the name, condition, length, roadway infrastructure, and pedestrian features of each municipal roadway, updated annually by municipalities. The database will serve as a comprehensive and transparent list of municipal roadway conditions. Rhode Island Highway Maintenance Account 128,239,518 Rhode Island Capital Plan Funds Maintenance Capital Equipment Replacement 1,800,000 Maintenance Facilities Improvements 500,000 Welcome Center 150,000 Salt Storage Facilities 1,150,000 Train Station Asset Protection 3,750,000 Total - Infrastructure Maintenance 179,791,302 Grand Total - Transportation 1,134,754,347 Statewide Totals General Revenues 5,954,722,537 Federal Funds 5,506,004,485 Restricted Receipts 459,831,598 Other Funds 2,938,464,040 Statewide Grand Total 14,859,022,660 SECTION 2. Each line appearing in section 1 of this article shall constitute an appropriation. 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; provided, however, in accordance with § 42-6-5, when the duties or administrative functions of government are designated by law to be performed within a particular department or agency, no transfer of duties or functions and no re-allocation, in whole or part, or appropriations and full-time equivalent positions to any other department or agency shall be authorized. SECTION 4. From the appropriation for contingency shall be paid such sums as may be required at the discretion of the governor 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, as amended. All expenditures and transfers from this account shall be approved by the governor. SECTION 5. The general assembly authorizes the state controller to establish the internal service accounts shown below, and no other, to finance and account for the operations of state agencies that provide services to other agencies, institutions and other governmental units on a cost reimbursed basis. The purpose of these accounts is to ensure that certain activities are managed in a businesslike manner; promote efficient use of services by making agencies pay the full costs associated with providing the services; and allocate the costs of central administrative services across all fund types, so that federal and other non-general fund programs share in the costs of general government support. The controller is authorized to reimburse these accounts for the cost of work or services performed for any other department or agency subject to the following expenditure limitations: Account Expenditure Limit Accounts and Control Internal Service Fund 17,696,064 State Assessed Fringe Benefit Internal Service Fund 37,347,585 Administration Central Utilities Internal Service Fund 30,366,642 State Central Mail Internal Service Fund 9,226,608 State Telecommunications Internal Service Fund 3,489,512 State Automotive Fleet Internal Service Fund 21,689,836 Surplus Property Internal Service Fund 44,789 Health Insurance Internal Service Fund 377,363,571 Other Post-Employment Benefits Fund 41,748,856 Capitol Police Internal Service Fund 1,894,861 Corrections Central Distribution Center Internal Service Fund 8,819,385 Correctional Industries Internal Service Fund 8,587,104 Secretary of State Record Center Internal Service Fund 1,167,703 Human Resources Internal Service Fund 14,804,445 DCAMM Facilities Internal Service Fund 41,508,177 Information Technology Internal Service Fund 64,137,258 SECTION 6. The director of the department of administration shall exercise his powers under chapter 11 of title 42 to centralize state fleet operations under the department as it relates to light and medium duty vehicle management, in accordance with best practices. SECTION 7. Legislative Intent - 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 8. Appropriation of Temporary Disability Insurance Funds -- There is hereby appropriated pursuant to §§ 28-39-5 and 28-39-8 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, 2027. SECTION 9. Appropriation of Employment Security Funds -- There is hereby appropriated pursuant to § 28-42-19 all funds required to be disbursed for benefit payments from the employment security fund for the fiscal year ending June 30, 2027. SECTION 10. Appropriation of Lottery Division Funds -- There is hereby appropriated to the lottery division any funds required to be disbursed by the lottery division for the purposes of paying commissions or transfers to the prize fund for the fiscal year ending June 30, 2027. SECTION 11. Appropriation of CollegeBoundSaver Funds - There is hereby appropriated to the office of the general treasurer designated funds received under the collegeboundsaver program for transfer to the division of higher education assistance within the office of the postsecondary commissioner to support student financial aid for the fiscal year ending June 30, 2027. SECTION 12. 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 limited period positions or, 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. Nor do they include individuals engaged in training, the completion of which is a prerequisite of employment. Provided, however, that the governor or designee, speaker of the house of representatives or designee, and the president of the senate or designee 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 president of the senate. 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. State employees whose funding is from non-state general revenue funds that are time limited shall receive limited term appointment with the term limited to the availability of non-state general revenue funding source. FY 2027 FTE POSITION AUTHORIZATION Departments and Agencies Full-Time Equivalent Administration 682.6 Provided that no more than 467.1 of the total authorization would be limited to positions that support internal service fund programs. 3 Office of Energy Resources 21.0 4 Business Regulation 157.0 5 Rhode Island Cannabis Control Commission 28.0 6 Executive Office of Commerce 5.0 7 Housing 38.0 8 Labor and Training 461.7 9 Revenue 605.5 10 Legislature 298.5 11 Office of the Lieutenant Governor 8.0 12 Office of the Secretary of State 62.0 13 Office of the General Treasurer 93.0 14 Board of Elections 13.0 15 Rhode Island Ethics Commission 12.0 16 Office of the Governor 45.0 17 Commission for Human Rights 15.0 18 Public Utilities Commission 57.0 19 Executive Office of Health and Human Services 252.0 20 Children, Youth and Families 719.5 21 Health 572.6 22 Human Services 804.0 23 Office of Veterans Services 291.0 24 Office of Healthy Aging 33.0 25 Behavioral Healthcare, Developmental Disabilities and Hospitals 1,223.4 Provided that 18.0 of the total authorization would be limited to independent facilitators positions to comply with the Consent Decree Addendum. Office of the Child Advocate 13.0 Commission on the Deaf and Hard of Hearing 4.0 Governor’s Commission on Disabilities 5.0 Office of the Mental Health Advocate 6.0 Elementary and Secondary Education 157.1 Provided that 3.0 of the total authorization would be available only for positions that are supported by the healthy environments advance learning grant at the school building authority. School for the Deaf 61.0 Davies Career and Technical School 125.0 Office of Postsecondary Commissioner 48.0 Provided that 1.0 of the total authorization would be available only for positions that are supported by third-party funds, 12.0 would be available only for positions at the state’s higher education centers located in Woonsocket and Westerly, 10.0 would be available only for positions at the nursing education center, and 9.0 would be available for the longitudinal data systems program. Rhode Island College 949.2 Provided that 76.0 of the total authorization would be available only for positions that are supported by third-party funds. Community College of Rhode Island 849.1 Provided that 89.0 of the total authorization would be available only for positions that are supported by third-party funds. Rhode Island State Council on the Arts 10.0 RI Atomic Energy Commission 8.6 Historical Preservation and Heritage Commission 15.6 Office of the Attorney General 268.1 Corrections 1,461.0 Judicial 749.3 Military Staff 93.0 Emergency Management Agency 38.0 Public Safety 638.0 Office of the Public Defender 105.0 Environmental Management 440.0 Coastal Resources Management Council 32.0 Transportation 757.0 Total 13,330.8 Effective retroactively to July 1, 2025, the University of Rhode Island shall be exempt from any limitations imposed on full-time equivalent (FTE) positions. No agency or department may employ contracted employee services where contract employees would work under state employee supervisors without determination of need by the director of administration acting upon positive recommendations by the budget officer and the personnel administrator and fifteen (15) days after a public hearing. Nor may any agency or department contract for services replacing work done by state employees at that time without determination of need by the director of administration acting upon the positive recommendations of the state budget officer and the personnel administrator and thirty (30) days after a public hearing. SECTION 13. The amounts reflected in this article include the appropriation of Rhode Island capital plan funds for fiscal year 2027 and supersede appropriations provided for FY 2027 within Pub. L. 2025, ch. 278, art. 1, § 13. The following amounts are hereby appropriated out of any money in the State’s Rhode Island capital plan fund not otherwise appropriated to be expended during the fiscal years ending 10 June 30, 2028, June 30, 2029, June 30, 2030, and June 30, 2031. These amounts supersede appropriations provided within Pub. L. 2025, ch. 278, art. 1, § 13. For the purposes and functions hereinafter mentioned, the state controller is hereby authorized and directed to draw the controller s orders upon the general treasurer for the payment of such sums and such portions thereof as may be required by the controller upon receipt of properly authenticated vouchers. FY Ending FY Ending FY Ending FY Ending 17 Project 06/30/2028 06/30/2029 06/30/2030 06/30/2031 18 DOA – 560 Jefferson Blvd Asset Protection 50,000 50,000 50,000 50,000 19 DOA – Arrigan Center 100,000 100,000 100,000 100,000 20 DOA – Big River Management Area 742,000 792,000 787,000 787,000 21 DOA – Cannon Building 4,225,000 4,225,000 1,750,000 1,200,000 22 DOA – Civic Center 1,075,000 1,500,000 1,475,000 1,500,000 23 DOA – Communities Facilities Asset Protection 125,000 125,000 125,000 125,000 24 DOA – Cranston Street Armory 100,000 100,000 100,000 100,000 25 DOA - DoIT Enterprise Operations Center 2,200,000 200,000 200,000 200,000 26 DOA – Environmental Compliance 225,000 225,000 225,000 225,000 27 DOA - Medical Examiner s Office 50,000 50,000 50,000 50,000 28 DOA – Old State House 100,000 100,000 100,000 100,000 29 DOA - Pastore Campus Infrastructure 20,000,000 20,000,000 20,000,000 20,000,000 30 DOA – Pastore Hospital Buildings 31 Asset Protection 8,250,000 500,000 500,000 500,000 32 DOA - Pastore Center Non-Hospital Buildings 33 Asset Protection 5.250,000 5,250,000 5,250,000 8,950,000 34 DOA - Replacement of Fueling Tanks 430,000 620,000 100,000 100,000 1 DOA - RI Convention Center Authority 2,500,000 2,000,000 2,000,000 2,500,000 2 DOA – Shepard Building Upgrades 5,325,000 3,135,000 2,250,000 2,250,000 3 DOA – Security Measures State Buildings 850,000 650,000 650,000 650,000 4 DOA - State House Renovations 36,159,000 35,029,000 8,309,000 4,309,000 5 DOA – State Office Building 300,000 50,000 50,000 50,000 6 DOA – State Office Reorganization & 7 Relocation 750,000 750,000 750,000 750,000 8 DOA – Veterans Auditorium 150,000 150,000 150,000 200,000 9 DOA – Washington County Government Center 200,000 200,000 200,000 200,000 10 DOA - William Powers Building 3,850,000 1,700,000 200,000 200,000 11 DOA - Zambarano Buildings and Campus 500,000 500,000 500,000 500,000 12 DOA – Zambarano LTAC Hospital 24,427,656 24,155,740 26,065,740 21,804,439 13 Housing – Asset Protection 200,000 340,000 190,000 190,000 14 OER – Energy Efficiency 1,000,000 1,000,000 1,000,000 1,000,000 15 DBR – OFSM Evidence Room 0 0 0 2,500,000 16 EOC – I-195 Redevelopment Commission 400,000 0 0 0 17 SOS – Rhode Island Archives and History 18 Center 4,500,000 0 0 0 19 DCYF – Training School Asset Protection 250,000 250,000 250,000 250,000 20 DOH – Health Laboratories & Medical 21 Examiner Equipment 400,000 400,000 400,000 400,000 22 DHS – Blind Vending Facilities 165,000 165,000 165,000 165,000 23 DHS – Veterans Memorial Cemetery 24 Asset Protection 480,000 510,000 1,150,000 1,450,000 25 DHS – Veterans Home Asset Protection 700,000 800,000 1,025,000 1,025,000 26 BHDDH – DD Residential Support 100,000 100,000 100,000 100,000 27 BHDDH – Group Home Maintenance 5,500,000 6,000,000 6,500,000 7,000,000 28 BHDDH – Hospital Equipment Asset Protection 300,000 300,000 300,000 300,000 29 BHDDH – RISPH Equipment 100,000 100,000 100,000 100,000 30 ELSEC – Davies School Asset Protection 750,000 750,000 750,000 750,000 31 ELSEC – Davies School HVAC 100,000 100,000 100,000 100,000 32 ELSEC - Davies School Wing Renovation 16,574,194 0 0 0 33 ELSEC – School for the Deaf Asset Protection 418,200 1,120,178 725,500 225,000 34 ELSEC – MET School Asset Protection 275,000 275,000 275,000 275,000 1 URI - Asset Protection 15,528,074 15,885,220 16,250,580 16,738,097 2 URI – Academic Building Improvements 7,150,00 818,723 0 0 3 URI - Athletics Complex 982,053 0 0 0 4 URI – Building Envelope Improvements 3,000,000 3,000,000 3,000,000 3,000,000 5 URI – Campus Accessibility 1,000,000 1,000,000 1,000,000 1,000,000 6 RIC - Asset Protection 6,632,000 6,850,000 6,850,000 7,055,500 7 RIC - Infrastructure Modernization 5,925,000 5,925,000 6,061,275 6,243,113 8 CCRI - Asset Protection 2,780,000 2,870,000 2,936,010 3,024,090 9 CCRI - Accessibility Improvements 720,000 590,000 230,000 200,000 10 CCRI – Data, Cabling, and Power Infrastructure 4,500,000 3,700,000 3,365,980 0 11 CCRI – Flanagan Campus Renovations 2,500,000 584,000 0 0 12 CCRI – Renovation and Modernization Phase I 7,000,000 2,785,000 0 0 13 CCRI – Renovation and Modernization 14 Phase II 4,090,000 2,470,000 700,000 3,250,000 15 AEC – Asset Protection 50,00 50,000 50,000 55,000 16 OAG – Renovation and Asset Protection 900,000 150,000 150,000 150,000 17 DOC – Asset Protection 4,100,000 4,100,000 4,100,000 4,100,000 18 Judiciary – Judicial Complexes Asset Protection 1,500,000 1,500,000 1,550,000 1,550,000 19 Judiciary – Judicial Complexes HVAC 500,000 500,000 500,000 500,000 20 Judiciary – Judicial Complexes Fan Coil 21 Replacements 850,000 500,000 500,000 500,000 22 Judiciary – Licht Limestone Cleaning & Pointing1,300,000 1,339,0000 0 0 23 Judiciary – Licht Window and Masonry Repairs 1,500,000 1,545,000 0 0 24 Military Staff – Asset Protection 1,120,000 2,220,831 3,253,820 3,548,675 25 DPS – Asset Protection 1,250,000 725,000 725,000 725,000 26 DPS – Training Academy Upgrades 690,000 975,000 600,000 150,000 27 RIEMA – RISCON Tower 550,000 0 550,000 0 28 RIEMA – RISCON Infrastructure Upgrade 15,000 0 0 0 29 DEM – Dam Repair 7,456,500 5,619,739 1,826,341 1,015,000 30 DEM – Facilities Asset Protection 765,000 765,000 780,000 100,000 31 DEM – Fish and Wildlife Facilities 200,000 200,000 100,000 100,000 32 DEM – Fort Adams Rehabilitation 500,000 500,000 0 0 33 DEM – Natural Resources Offices and 34 Visitor s Center 600,000 100,000 100,000 100,000 1 DEM – Marine Infrastructure/Pier Development 500,000 500,000 500,000 0 2 DEM – Port of Galilee 5,375,00 6,600,000 8,800,000 5,146,499 3 DEM – Recreational Facilities Improvements 3,500,000 3,500,000 3,500,000 3,000,000 4 DOT - Highway Improvement Program 22,200,000 22,200,000 22,200,000 22,200,000 5 DOT – Bike Path Asset Protection 400,000 400,000 400,000 400,000 6 DOT – Maintenance Facility Improvements 1,375,000 500,000 500,000 800,000 7 DOT - Maintenance Capital Equipment 8 Replacement 1,800,000 1,800,000 1,800,000 1,800,000 9 DOT - Salt Storage Facilities 1,500,000 1,500,000 1,500,000 1,500,000 10 DOT – Train Station Asset Protection 2,600,000 1,000,000 0 0 11 DOT – Welcome Center 150,000 150,000 150,000 0 12 DOT – RIPTA – Bus Purchases 3,500,000 3,500,000 3,500,000 3,500,000 13 DOT – RIPTA - Land and Buildings 1,310,125 560,000 500,000 500,000 SECTION 14. Reappropriation of Funding for Rhode Island capital plan fund projects. Any unexpended and unencumbered funds from Rhode Island capital plan fund project appropriations shall be reappropriated in the ensuing fiscal year and made available for the same purpose. However, any such reappropriations are subject to final approval by the general assembly as part of the supplemental appropriations act. Any unexpended funds of less than five hundred dollars ($500) shall be reappropriated at the discretion of the state budget officer. SECTION 15. For the Fiscal Year ending June 30, 2027, the Rhode Island housing and mortgage finance corporation shall provide from its resources such sums as appropriate in support of the Neighborhood Opportunities Program. The corporation shall provide a report detailing the amount of funding provided to this program, as well as information on the number of units of housing provided as a result to the director of administration, the secretary of housing, the chair of the house finance committee, the chair of the senate finance committee, and the state budget officer. SECTION 16. Appropriation of Economic Activity Taxes in accordance with the city of Pawtucket downtown redevelopment statute -- There is hereby appropriated for the fiscal year ending June 30, 2027, all state economic activity taxes to be collected pursuant to § 45-33.4-4, as amended (including, but not limited to, the amount of tax revenues certified by the commerce corporation in accordance with § 45-33.4-1(13)), for the purposes of paying debt service on bonds, funding debt service reserves; paying costs of infrastructure improvements in and around the ballpark district, arts district, and the growth center district; funding future debt service on bonds; and funding a redevelopment revolving fund established in accordance with § 45-33-1. SECTION 17. The appropriations from federal funds contained in section 1 shall not be construed to mean any federal funds or assistance appropriated, authorized, allocated or apportioned to the State of Rhode Island from the state fiscal recovery fund and capital projects fund enacted pursuant to the American Rescue Plan Act of 2021, P.L. 117-2 for fiscal year 2027 except for those instances specifically designated. The State fiscal recovery fund and capital projects fund appropriations herein shall be made in support of the following projects: Federal Funds - State Fiscal Recovery Fund Department of Administration (DOA) DOA- Pandemic Recovery Office. These funds shall be allocated to finance the pandemic recovery office established within the department of administration. Department of Public Safety (DPS) DPS – Support for Survivors of Domestic Violence. These funds shall be allocated to invest in the nonprofit community to provide additional housing, clinical and mental health services to victims of domestic violence and sexual assault. This includes increased investments for therapy and counseling, housing assistance, job training, relocation aid and case management. Department of Transportation (DOT) DOT - Washington Bridge Project. These funds shall support the non-federal share or matching requirement on federal funds for priority transportation projects, including but not limited to the Washington Bridge project. Federal Funds - Capital Projects Fund Department of Administration (DOA) DOA - CPF Administration. These funds shall be allocated to the department of administration to oversee the implementation of the capital projects fund award from the American Rescue Plan Act. SECTION 18. Reappropriation of Funding for State Fiscal Recovery Fund and Capital Projects Fund. Notwithstanding any provision of general law, any unexpended and unencumbered federal funds from the state fiscal recovery fund and capital projects fund shall be reappropriated in the ensuing fiscal year and made available for the same purposes. However, any such reappropriations are subject to final approval by the general assembly as part of the supplemental appropriations act. SECTION 19. The pandemic recovery office shall monitor the progress and performance of all programs financed by the state fiscal recovery fund and the capital projects fund. On or before October 31, 2023 through April 30, 2025, the office shall provide a report to the speaker of the house and senate president, with copies to the chairpersons of the house and senate finance committees, on a quarterly basis and biannually thereafter until and including October 31, 2026, identifying programs that are at risk of significant underspending or noncompliance with federal or state requirements. The report, at a minimum must include an assessment of how programs that are at risk can be remedied. In the event that any state fiscal recovery fund program underspends its appropriation or receives program income as defined by U.S. Treasury and would put the state at risk of forfeiture of federal funds, the governor may propose to reclassify unspent funds or program income from the at-risk program to other eligible uses as determined by U.S. Treasury. This proposal shall be referred to the general assembly. For a state fiscal recovery fund program, if the amount of the underspend or receipt of program income is less than or equal to one million dollars ($1,000,000) and less than or equal to twenty percent (20%) of its total appropriation, the governor’s proposed reclassification shall take effect immediately. For a state fiscal recovery fund program, if the amount of the underspend or receipt of program income is greater than one million dollars ($1,000,000) or greater than twenty percent (20%) of its total appropriation, the governor’s proposed reclassification shall go into effect thirty (30) days after its referral to the general assembly by the governor, unless rejected by formal action of the house and senate acting concurrently within that time. SECTION 20. This article shall take effect as of July 1, 2026, except as otherwise provided herein. ARTICLE 2 RELATING TO STATE FUNDS SECTION 1. Effective retroactively to July 1, 2025, section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds” is hereby amended to read as follows: 35-4-27. Indirect cost recoveries on restricted receipt accounts. Indirect cost recoveries of fifteen percent (15%) of cash receipts shall be transferred from all restricted receipt accounts, to be recorded as general revenues in the general fund. However, there shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions from nonprofit charitable organizations; (2) From the assessment of indirect cost- recovery rates on federal grant funds; or (3) Through transfers from state agencies to the department of administration for the payment of debt service. These indirect cost recoveries shall be applied to all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The following restricted receipt accounts shall not be subject to the provisions of this section: Executive Office of Health and Human Services HIV Care Grant Drug Rebates Health System Transformation Project Rhode Island Statewide Opioid Abatement Account HCBS Support-ARPA HCBS Admin Support-ARPA Department of Human Services Organ Transplant Fund Veterans’ home — Restricted account Veterans’ home — Resident benefits Pharmaceutical Rebates Account Demand Side Management Grants Veteran’s Cemetery Memorial Fund Donations — New Veterans’ Home Construction Commodity Supplemental Food Program-Claims Department of Health Pandemic medications and equipment account Miscellaneous Donations/Grants from Non-Profits State Loan Repayment Match Healthcare Information Technology Department of Behavioral Healthcare, Developmental Disabilities and Hospitals Eleanor Slater non-Medicaid third-party payor account Hospital Medicare Part D Receipts RICLAS Group Home Operations Group Home Facility Improvement Fund Commission on the Deaf and Hard of Hearing Emergency and public communication access account Department of Environmental Management National heritage revolving fund Environmental response fund II Underground storage tanks registration fees De Coppet Estate Fund Rhode Island Historical Preservation and Heritage Commission Historic preservation revolving loan fund Historic Preservation loan fund — Interest revenue Department of Public Safety E-911 Uniform Emergency Telephone System Forfeited property — Retained Forfeitures — Federal Forfeited property — Gambling Donation — Polygraph and Law Enforcement Training Rhode Island State Firefighter’s League Training Account Fire Academy Training Fees Account Attorney General Forfeiture of property Federal forfeitures Attorney General multi-state account Forfeited property — Gambling Department of Administration Health Insurance Market Integrity Fund RI Health Benefits Exchange Information Technology restricted receipt account Restore and replacement — Insurance coverage Convention Center Authority rental payments Investment Receipts — TANS OPEB System Restricted Receipt Account Grants Management Administration Office of Energy Resources OER Reconciliation Funding RGGI Executive Climate Change Coordinating Council Projects Electric Vehicle Charging Stations Operating and Maintenance Account Clean Transportation Programs Department of Housing Housing Resources and Homelessness Restricted Receipt Account Housing Production Fund Low-Income Housing Tax Credit Fund Department of Revenue Car Rental Tax/Surcharge-Warwick Share DMV Modernization Project Jobs Tax Credit Redemption Fund Legislature Audit of federal assisted programs Department of Children, Youth and Families Children’s Trust Accounts — SSI Military Staff RI Military Family Relief Fund RI National Guard Counterdrug Program Treasury Admin. Expenses — State Retirement System Retirement — Treasury Investment Options Defined Contribution — Administration - RR Violent Crimes Compensation — Refunds Treasury Research Fellowship Business Regulation Banking Division Reimbursement Account Office of the Health Insurance Commissioner Reimbursement Account Securities Division Reimbursement Account Commercial Licensing and Racing and Athletics Division Reimbursement Account Insurance Division Reimbursement Account Historic Preservation Tax Credit Account Rhode Island Cannabis Control Commission Marijuana Trust Fund Social Equity Assistance Fund Judiciary Arbitration Fund Restricted Receipt Account Third-Party Grants RI Judiciary Technology Surcharge Account Department of Elementary and Secondary Education Statewide Student Transportation Services Account School for the Deaf Fee-for-Service Account School for the Deaf — School Breakfast and Lunch Program Davies Career and Technical School Local Education Aid Account Davies — National School Breakfast & Lunch Program School Construction Services Office of the Postsecondary Commissioner Tuition Savings Program Fund Higher Education and Industry Center IGT STEM Scholarships Department of Labor and Training Job Development Fund Contractor Training Restricted Receipt Account Workers’ Compensation Administrative Account Rhode Island Uninsured Protection Fund Rhode Island Council on the Arts Governors’ Portrait Donation Fund Statewide records management system account SECTION 2. Section 39-18.1-5 of the General Laws in Chapter 39-18.1 entitled "Transportation Investment and Debt Reduction Act of 2011” is hereby amended to read as follows: 39-18.1-5. Allocation of funds. (a) The monies in the highway maintenance fund to be directed to the department of transportation pursuant to § 39-18.1-4(b)(1) — (b)(3) shall be allocated through the transportation improvement program process to provide the state match for federal transportation funds, in place of borrowing, as approved by the state planning council. The expenditure of moneys in the highway maintenance fund shall only be authorized for projects that appear in the state’s transportation improvement program. (b) Provided, however, that beginning with fiscal year 2015 and annually thereafter, the department of transportation will allocate necessary funding to programs that are designed to eliminate structural deficiencies of the state’s bridge, road, and maintenance systems and infrastructure. (c) Provided, that beginning July 1, 2015, through June 30, 2025, five percent (5%) of available proceeds in the Rhode Island highway maintenance account shall be allocated annually to the Rhode Island public transit authority for operating expenditures. (d) Provided, that beginning July 1, 2025, ten percent (10%) of available proceeds in the Rhode Island highway maintenance account shall be allocated annually to the Rhode Island public transit authority for operating expenditures. (e) Provided, further, that from July 1, 2017 , and annually thereafter through June 30, 2026 , in addition to the amount above, the Rhode Island public transit authority shall receive an amount of not less than five million dollars ($5,000,000) each fiscal year, except for the period July 1, 2019, through June 30, 2022, during which such amount or a portion thereof may come from federal coronavirus relief funds. Provided, further, that beginning July 1, 2026, and annually thereafter, in addition to the amount above, the Rhode Island public transit authority shall receive an amount of not less than fourteen million three hundred thousand dollars ($14,300,000) each fiscal year. SECTION 3. This article shall take effect upon passage, except Section 1 which shall take effect retroactively as of July 1, 2025. ARTICLE 3 RELATING TO GOVERNMENT REFORM AND REORGANIZATION SECTION 1. This section shall serve as a joint resolution required pursuant to R.I. Const., Art. XIV, Sec. I. J O I N T R E S O L U T I O N TO APPROVE AND PUBLISH AND SUBMIT TO THE ELECTORS A PROPOSITION OF AMENDMENT TO THE CONSTITUTION OF THE STATE OF RHODE ISLAND RESOLVED, that a majority of the members elected to each house of the General Assembly voting therefor, the following amendment to the Constitution of the State of Rhode Island be proposed to the qualified electors of the State for their approval in accordance with the provisions of Article XIV of the Constitution, and that it take the place of Article IX, Section 14, which is hereby amended to read as follows: ARTICLE IX – OF THE EXECUTIVE POWER Section 14. Veto power of governor -- Veto overrides by general assembly – Acts effective without action by governor. Every bill, resolution, or vote (except such as relate to adjournment, the organization or conduct of either or both houses of the general assembly, and resolutions proposing amendment to the Constitution) which shall have passed both houses of the general assembly shall be presented to the governor. If the governor approve it the governor shall sign it, and thereupon it shall become operative, but if the governor does not approve it the governor shall return it, accompanied by the governor s objections in writing to the house in which it originated, which shall enter the governor s objections in full upon its journal and proceed to reconsider it. If, after such reconsideration, three‑fifths of the members present and voting in (except for any bill addressing appropriation of money, two-thirds of the members elected to) that house shall vote to pass the measure, it shall be sent with the objections, to the other house, by which it shall likewise be reconsidered, and if approved by three‑fifths of the members present and voting in (except for any bill addressing appropriation of money, two‑thirds of the members elected to) that house, it shall become operative in the same manner as if the governor had approved it, but in such cases the votes of both houses shall be determined by ayes and nays and the names of the members voting for and against the measure shall be entered upon the journal of each house, respectively. If the measure shall not be returned by the governor within six days (Sundays excepted) after it shall have been presented to the governor the same shall become operative unless the general assembly, by adjournment, prevents its return, in which case it shall become operative unless transmitted by the governor to the secretary of state, with the governor s disapproval in writing within ten days after such adjournment. If any bill presented to the governor shall address appropriation of money, the governor may: (a) Approve or disapprove the entire bill in like manner as the passage of other bills set forth in this section; or (b) Reduce or eliminate any sum or sums of money appropriated in the bill while approving other portions of the bill, in which case the portions of the bill approved by the governor shall become law, and each reduced or eliminated sum of money shall also become law unless the general assembly reconsiders and separately and individually passes the original sum according to the rules and limitations prescribed in this section for the passage of other bills over the governor’s veto; and/or (c) Disapprove one or more items or parts of items of the bill (other than sum or sums of money described in the immediately preceding paragraph (b) of this section), in which case the portions of the bill approved by the governor shall become law, and each item or part of an item disapproved by the governor shall not become law unless the general assembly reconsiders and separately and individually passes the original version of the item or part of an item according to the rules and limitations prescribed in this section for the passage of other bills over the governor’s veto, provided: (1) That in approving the bill in part, the governor may not create: (i) a new word by rejecting individual letters in the words; or (ii) a new sentence by combining parts of two or more sentences; and (2) Further, that to the extent an item or part of an item disapproved by the governor constitutes a condition, including but not limited to directing or restricting the use, of an appropriation, the sum corresponding to the specific item of appropriation to which the disapproved condition applies shall not be reduced but shall remain as part of the appropriated funds. RESOLVED, that this proposition of amendment shall be submitted to qualified electors for their approval or rejection at the next statewide general election. The voting places in the several cities and towns shall be kept open during the hours required by law for voting therein for general officers of the state; and be it further RESOLVED, that the secretary of state shall cause this proposition of amendment to be published in the newspapers of the state prior to the date of the meetings of qualified electors; and this proposition of amendment shall be inserted in notices to be issued prior to the meetings of qualified electors for the purpose of warning the town, ward, or district meetings, and this proposition of amendment shall be read by the town, ward, or district meetings to be held as aforesaid; and be it further RESOLVED, that the town, ward, and district meetings to be held as aforesaid shall be warned, and the list of voters shall be canvassed and made up, and the town, ward, and district meetings shall be conducted in the same manner as now provided by law for the town, ward, and district meetings for the election of general officers of the state; and be it further RESOLVED, that upon approval by the qualified electors, this proposition of amendment shall take effect and amend Section 14 of Article IX of the Constitution of the state on January 1, 2027. SECTION 2. Section 23-24.12-3 of the General Laws in Chapter 23-24.12 entitled “Proper Management of Unused Paint” is hereby amended to read as follows: 23-24.12-3. Establishment of paint stewardship program. (a) On or before March 1, 2014, each producer shall join the representative organization and such representative organization shall submit a plan for the establishment of a paint stewardship program to the department for approval. The program shall minimize the public sector involvement in the management of post-consumer paint by reducing the generation of post-consumer paint, negotiating agreements to collect, transport, reuse, recycle, and/or burn for energy recovery at an appropriately licensed facility post-consumer paint using environmentally sound management practices. (b) The program shall also provide for convenient and available state-wide collection of post-consumer paint that, at a minimum, provides for collection rates and convenience greater than the collection programs available to consumers prior to such paint stewardship program; propose a paint stewardship assessment; include a funding mechanism that requires each producer who participates in the representative organization to remit to the representative organization payment of the paint stewardship assessment for each container of architectural paint sold within the state; include an education and outreach program to help ensure the success of the program; and, work with the department and Rhode Island commerce corporation to identify ways in which the state can motivate local infrastructure investment, business development and job creation related to the collection, transportation and processing of post-consumer paint. (c) The plan submitted to the department pursuant to this section shall: (1) Identify each producer participating in the paint stewardship program and the brands of architectural paint sold in this state covered by the program; (2) Identify how the representative organization will provide convenient, statewide accessibility to the program; (3) Set forth the process by which an independent auditor will be selected and identify the criteria used by the representative organization in selecting independent auditor; (4) Identify, in detail, the educational and outreach program that will be implemented to inform consumers and retailers of the program and how to participate; (5) Identify the methods and procedures under which the paint stewardship program will be coordinated with the Rhode Island resource recovery corporation; (6) Identify, in detail, the operational plans for interacting with retailers on the proper handling and management of post-consumer paint; (7) Include the proposed, audited paint assessment as identified in this section; (8) Include the targeted annual collection rate; (9) Include a description of the intended treatment, storage, transportation and disposal options and methods for the collected post-consumer paint; and (10) Be accompanied by a fee in the amount of two thousand five hundred dollars ($2,500) to be deposited into the environmental response fund to cover the review of said plan by the department. (d) Not later than sixty (60) days after submission of a plan pursuant to this section, the department shall make a determination whether to: (1) Approve the plan as submitted; (2) Approve the plan with conditions; or (3) Deny the plan. (e) Not later than three (3) months after the date the plan is approved, the representative organization shall implement the paint stewardship program. (f) On or before March 1, 2014, the representative organization shall propose a uniform paint stewardship assessment for all architectural paint sold in this state. Such proposed paint stewardship assessment shall be reviewed by an independent auditor to assure that such assessment is consistent with the budget of the paint stewardship program described in this section and such independent auditor shall recommend an amount for such paint stewardship assessment to the department. The department shall be responsible for the approval of such paint stewardship assessment based upon the independent auditor’s recommendation. If the paint stewardship assessment previously approved by the department pursuant to this section is proposed to be changed, the representative organization shall submit the new, adjusted uniform paint stewardship assessment to an independent auditor for review. After such review has been completed, the representative organization shall submit the results of said auditor’s review and a proposal to amend the paint stewardship assessment to the department for review. The department shall review and approve, in writing, the adjusted paint stewardship assessment before the new assessment can be implemented. Any proposed changes to the paint stewardship assessment shall be submitted to the department no later than sixty (60) days prior to the date the representative organization anticipates the adjusted assessment to take effect. (g) On and after the date of implementation of the paint stewardship program pursuant to this section, the paint stewardship assessment shall be added to the cost of all architectural paint sold to retailers and distributors in this state by each producer. On and after such implementation date, each retailer or distributor, as applicable, shall add the amount of such paint stewardship assessment to the purchase price of all architectural paint sold in this state. (h) Any retailer may participate, on a voluntary basis, as a paint collection point pursuant to such paint stewardship program and in accordance with any applicable provision of law or regulation. (i) Each producer and the representative organization shall be immune from liability for any claim of a violation of antitrust law or unfair trade practice if such conduct is a violation of antitrust law, to the extent such producer or representative organization is exercising authority pursuant to the provisions of this section. (j) Not later than the implementation date of the paint stewardship program, the department shall list the names of participating producers the brands of architectural paint covered by such paint stewardship program and the cost of the approved paint stewardship assessment on its website. (k)(1) On and after the implementation date of the paint stewardship program, no producer, distributor or retailer shall sell or offer for sale architectural paint to any person in this state if the producer of such architectural paint is not a member of the representative organization. (2) No retailer or distributor shall be found to be in violation of the provisions of this section if, on the date the architectural paint was ordered from the producer or its agent, the producer or the subject brand of architectural paint was listed on the department’s website in accordance with the provisions of this section. (l) Producers or the representative organization shall provide retailers with educational materials regarding the paint stewardship assessment and paint stewardship program to be distributed at the point of sale to the consumer. Such materials shall include, but not be limited to, information regarding available end-of-life management options for architectural paint offered through the paint stewardship program and information that notifies consumers that a charge for the operation of such paint stewardship program is included in the purchase price of all architectural paint sold in this state. (m) On or before October 15, 2015, and annually thereafter, the representative organization shall submit a report to the director of the department of environmental management that details the paint stewardship program. Said report shall include a copy of the independent audit detailed in subdivision (4) below. Such annual report shall include, but not be limited to: (1) A detailed description of the methods used to collect, transport and process post- consumer paint in this state; (2) The overall volume of post-consumer paint collected in this state; (3) The volume and type of post-consumer paint collected in this state by method of disposition, including reuse, recycling and other methods of processing or disposal; (4) The total cost of implementing the program, as determined by an independent financial audit, as performed by an independent auditor; (5) An evaluation of the adequacy of the program’s funding mechanism; (6) Samples of all educational materials provided to consumers of architectural paint and participating retailers; and (7) A detailed list of efforts undertaken and an evaluation of the methods used to disseminate such materials including recommendations, if any, for how the educational component of the program can be improved. (n) The representative organization shall submit to the department an updated plan for review and approval every five years, with the first such updated plan due no later than December 31, 2026. update the plan, as needed, when there are changes proposed to the current program. A new plan or amendment will also be required to be submitted to the department for approval when: (1) There is a change to the amount of the assessment; or (2) There is an addition to the products covered under the program; or (3) There is a revision of the product stewardship organization’s goals . : or (4) Every four (4) years, if requested, in writing, by the department the representative organization shall notify the department annually, in writing, if there are no changes proposed to the program and the representative organization intends to continue implementation of the program as previously approved by the department. SECTION 3. Effective July 1, 2026, sections 37-24-3 and 37-24-5 of the General Laws in Chapter 37-24 entitled “The Green Buildings Act” are hereby amended to read as follows: 37-24-3. Definitions. For purposes of this chapter, the following definitions shall apply: (1) “Construction” means the process of building, altering, repairing, improving, or demolishing forty percent (40%) or more of any public structures, public buildings, public real property or other public improvements of any kind to any public structures, public buildings or public real property. (2) “Department” means the department of administration the office of the state building code commissioner . (3) “Equivalent standard” means a high-performance green building standard, other than LEED, LEED for Neighborhood Development, and SITES, that provides an independent, third- party verification and certification of a rating system or measurement tool, that, when used, leads to outcomes equivalent to, LEED, LEED for Neighborhood Development, and SITES outcomes, in terms of green building, green infrastructure, and green site performance; current accepted equivalent standards include green globes, Northeast collaborative high-performance schools protocol; or other equivalent high-performance green building, green infrastructure, and green site standards accepted by the department. (4) “LEED” also, “LEED for Neighborhood Development, and SITES certified standard” means the current version of the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) green building rating standard referred to as LEED, LEED for Neighborhood Development, and SITES certified. SITES means the U.S. Green Building Council’s SITES — The Sustainable SITES Initiative. (5) “Public agency” means every state or municipal office, board, commission, committee, bureau, department, or public institution of education, or any political subdivision thereof. (6) “Public facility” means any public institution, public facility, public equipment, or any physical asset owned, including its public real-property site, leased or controlled in whole or in part by this state, a public agency, a municipality or a political subdivision, that is for public or government use. (7) “Public major facility project” means: (i) A public facility building construction project larger than ten thousand (10,000) gross square feet of occupied or conditioned space, and its public real-property site; or (ii) A public facility building renovation project larger than ten thousand (10,000) gross square feet of occupied or conditioned space, and its public real-property site. 37-24-5. Administration and reports — Green buildings advisory committee. (a) The department shall promulgate such regulations as are necessary to enforce this section by January 1, 2023 . Effective July 1, 2026, the office of the state building code commissioner will assume responsibility for promulgating the rules and regulations regarding the green buildings advisory committee. The rules and regulations promulgated under title 220, chapter 70, subchapter 00, part 1 of the Rhode Island code of regulations will remain in full force and effect and shall be enforced by the department of administration until such a time as the rules and regulations are properly transferred to and promulgated by the office of the state building code commissioner title within the Rhode Island code of regulations. Those regulations shall include how the department will determine whether a project qualifies for an exception from the LEED, LEED for Neighborhood Development, and SITES certified or equivalent high-performance green building standard, and the green building standards that may be imposed on projects that are granted exceptions. (b) The department shall monitor and document ongoing operating savings that result from major facility projects designed, constructed, and certified as meeting the LEED, LEED for Neighborhood Development, and SITES certified standard annually publish a public report of findings and recommended changes in policy. The report shall also include a description of projects that were granted exceptions from the LEED, LEED for Neighborhood Development, and SITES certified standard, the reasons for exception, and the lesser green building standards imposed. 13 (c) — (f) [Deleted by P.L. 2022, ch. 204, § 1 and P.L. 2022, ch. 205, § 1.] (g) A green buildings advisory committee shall be created composed of nineteen (19) members. The advisory committee shall have eleven (11) public members and eight (8) public agency members. Five (5) of the public members shall be appointed by the governor; three (3) of the public members shall be appointed by the president of the senate; and, three (3) of the public members shall be appointed by the speaker of the house of representatives. (1) The eleven (11) public members of the advisory committee shall be composed of nine (9) representatives one from each of the following fields: architecture, engineering, landscape architecture, energy, labor through the Rhode Island AFL-CIO, general construction contracting, building product and building materials industries who are involved in, and have recognized knowledge and accomplishment in their respective professions, of high-performance green building standards, relating to the standards set forth in § 37-24-4; in addition to two (2) public members, one representing an urban municipality from Providence, Cranston, Warwick, Pawtucket, Woonsocket, or Newport, and one public member representing the other thirty-two (32) municipalities in the state in order to ensure geographic diversity. (2) The advisory committee shall have eight (8) public agency members representing personnel from affected public agencies, and cities and towns, that oversee public works projects and workforce development, who shall be appointed by the directors or chief executive officers of the respective public agencies which shall include the department of administration; the department of environmental management; the department of education; the department of transportation; the department of labor and training; the office of the state building code commissioner; the Rhode Island infrastructure bank, and the Rhode Island League of Cities and Towns. (3) The chairperson of the green buildings advisory committee shall be a public member chosen by the green buildings advisory committee. (4) Of the initial eleven (11) public members, six (6) shall serve three-year (3) terms and five (5) shall have two-year (2) terms. Each appointing authority shall appoint two (2) public members to three-year (3) terms with the remainder of the public member appointments serving two-year terms. Thereafter, all public members shall be appointed to three-year (3) terms. (h) The green buildings advisory committee shall: (1) Make recommendations regarding an ongoing evaluation process of the green buildings act to help the department and the executive climate change coordinating council implement this chapter; (2) Identify the needs, actions, and funding required to implement the requirements set forth in this chapter, in achieving high-performance green building projects for our public buildings, public structures, and our public real properties; (3) Establish clear, measurable targets for implementing the standards, defined in this chapter, for all public major facility projects including timeline, workforce needs, anticipated costs and other measures identified by the green buildings advisory committee and required by chapter 6.2 of title 42 (“2021 act on climate”); and (4) Identify ways to monitor and document ongoing operating savings and greenhouse gas emission reductions that result from public major facility projects designed, constructed and certified as meeting the LEED, LEED for Neighborhood Development, SITES certified standard, Green Globes, Northeast Collaborative for High-Performance Schools Protocol, Version 1.1 or above and annually publish a report to the general assembly and the executive climate change coordinating council of findings and recommended changes in policy. (i) All requests for proposals, requests for information, requests for bids, requests for design/build, requests for construction managers, and any requests relating to obtaining the professional services, pricing, and construction for major facility projects by a public agency for a public facility, shall include the notice of the statutory requirements of this chapter (“the green buildings act”). (j) The green buildings advisory committee shall have no responsibility for, and shall not develop requests for proposals, requests for information, requests for bids, requests for design/build, requests for construction managers, and any requests relating to obtaining the professional services, pricing, and construction for major facility projects by a public agency for a public facility; and the green buildings advisory committee shall have no responsibility for, and shall not select any vendors for any requests for proposals, requests for information, requests for bids, requests for design/build, requests for construction managers, and any requests relating to obtaining the professional services, pricing, and construction for major facility projects by a public agency for a public facility. Nothing shall prohibit public members of the green buildings advisory committee from responding to, and being involved with, any submittals of requests for proposals, requests for information, requests for bids, requests for design/build, requests for construction managers, and any requests relating to obtaining the professional services, pricing, and construction for major facility projects by a public agency for a public facility. (k) The department of administration shall commission a report to analyze the costs and/or benefits of LEED certification compared to equivalent standards. This includes, but is not limited to, the impact of obtaining formal LEED certification on project budget and timeline. SECTION 4. Chapter 42-12 of the General Laws entitled "Department of Human Services" is hereby amended by adding thereto the following section: 42-12-1.6. Transfer of functions to the office of energy resources. (a) There is hereby transferred from the department of human services to the office of energy resources the administration, management, all functions and resources associated with: (1) The weatherization assistance program which offers weatherization grants and heating system upgrades using funds from the federal department of energy and the federal low-income home energy assistance program, and any state funded or privately funded weatherization assistance program of a similar nature assigned to it; (b) The department is authorized to offer advisory assistance to the office of energy resources in order to maintain continuity to eligible households. SECTION 5. Section 42-12-1.5 of the General Laws in Chapter 42-12 entitled "Department of Human Services" is hereby amended to read as follows: 42-12-1.5. Transfer of functions from the office of energy resources. (a) There is hereby transferred from the office of energy resources to the department of human services the administration, management, all functions and resources associated with: (1) The federal low-income home energy assistance program (LIHEAP), which provides heating assistance to eligible low-income persons and any state funded or privately funded heating assistance program of a similar nature assigned to it for administration; (2) The weatherization assistance program, which offers home weatherization grants and heating system upgrades to LIHEAP eligible households; and, (3) (2) The emergency fuel program, which provides oil deliveries to families experiencing a heating emergency. (b) The department is authorized to request advisory assistance from the office of energy resources in order to maintain continuity of assistance provided to LIHEAP eligible households pursuant to § 39-2-1(d). SECTION 6. Chapter 42-17.1 of the General Laws entitled “Department of Environmental Management” is hereby amended by adding thereto the following section: 42-17.1-47. Big River Reservoir — Administration. The Rhode Island department of environmental management, established pursuant to chapter 17.1 of this title, shall administer those lands acquired for the Big River Reservoir as established under section 23 of chapter 133 of the Public Laws of 1964. The director of the department of environmental management and the director’s authorized agents, employees, and designees shall manage the land and natural resources of the Big River Reservoir. The lands of the Big River Reservoir are subject to enforcement authority of the department of environmental management, as provided for in chapter 17.1 of this title, and as provided for in title 20 of the General Laws. Nothing contained herein shall be construed to affect any of the powers granted to the water resources board (agency) with regard to fresh water resource management pursuant to chapters 15 and 15.1 of title 46. Effective July 1, 2026, the department of environmental management will assume responsibility for all land use planning and for promulgating the rules and regulations regarding the administration of the Big River Reservoir consistent with the requirements of R.I. Gen. Laws § 37- 20-1. The rules and regulations promulgated under 490-RICR-00-00-5 of the Rhode Island code of regulations will remain in full force and effect until such a time as the rules and regulations are properly transferred to and promulgated by the department of environmental management s title within the Rhode Island code of regulations. SECTION 7. Section 42-17.1-2 of the General Laws in Chapter 42-17.1 entitled “Department of Environmental Management” is hereby amended to read as follows: 42-17.1-2. Powers and duties. The director of environmental management shall have the following powers and duties: (1) To supervise and control the protection, development, planning, and utilization of the natural resources of the state, such resources, including, but not limited to: water, plants, trees, soil, clay, sand, gravel, rocks and other minerals, air, mammals, birds, reptiles, amphibians, fish, shellfish, and other forms of aquatic, insect, and animal life; (2) To exercise all functions, powers, and duties heretofore vested in the department of agriculture and conservation, and in each of the divisions of the department, such as the promotion of agriculture and animal husbandry in their several branches, including the inspection and suppression of contagious diseases among animals; the regulation of the marketing of farm products; the inspection of orchards and nurseries; the protection of trees and shrubs from injurious insects and diseases; protection from forest fires; the inspection of apiaries and the suppression of contagious diseases among bees; the prevention of the sale of adulterated or misbranded agricultural seeds; promotion and encouragement of the work of farm bureaus, in cooperation with the University of Rhode Island, farmers’ institutes, and the various organizations established for the purpose of developing an interest in agriculture; together with such other agencies and activities as the governor and the general assembly may, from time to time, place under the control of the department; and as heretofore vested by such of the following chapters and sections of the general laws as are presently applicable to the department of environmental management and that were previously applicable to the department of natural resources and the department of agriculture and conservation or to any of its divisions: chapters 1 through 22, inclusive, as amended, in title 2 entitled “Agriculture and Forestry”; chapters 1 through 17, inclusive, as amended, in title 4 entitled “Animals and Animal Husbandry”; chapters 1 through 19, inclusive, as amended, in title 20 entitled “Fish and Wildlife”; chapters 1 through 32, inclusive, as amended, in title 21 entitled “Food and Drugs”; chapter 7 of title 23, as amended, entitled “Mosquito Abatement”; and by any other general or public law relating to the department of agriculture and conservation or to any of its divisions or bureaus; (3) To exercise all the functions, powers, and duties heretofore vested in the division of parks and recreation of the department of public works by chapters 1, 2, and 5 in title 32 entitled “Parks and Recreational Areas”; by chapter 22.5 of title 23, as amended, entitled “Drowning Prevention and Lifesaving”; and by any other general or public law relating to the division of parks and recreation; (4) To exercise all the functions, powers, and duties heretofore vested in the division of harbors and rivers of the department of public works, or in the department itself by such as were previously applicable to the division or the department, of chapters 1 through 22 and sections thereof, as amended, in title 46 entitled “Waters and Navigation”; and by any other general or public law relating to the division of harbors and rivers; (5) To exercise all the functions, powers, and duties heretofore vested in the department of health by chapters 25, 18.9, and 19.5 of title 23, as amended, entitled “Health and Safety”; and by chapters 12 and 16 of title 46, as amended, entitled “Waters and Navigation”; by chapters 3, 4, 5, 6, 7, 9, 11, 13, 18, and 19 of title 4, as amended, entitled “Animals and Animal Husbandry”; and those functions, powers, and duties specifically vested in the director of environmental management by the provisions of § 21-2-22, as amended, entitled “Inspection of Animals and Milk”; together with other powers and duties of the director of the department of health as are incidental to, or necessary for, the performance of the functions transferred by this section; (6) To cooperate with the Rhode Island commerce corporation in its planning and promotional functions, particularly in regard to those resources relating to agriculture, fisheries, and recreation; (7) To cooperate with, advise, and guide conservation commissions of cities and towns created under chapter 35 of title 45 entitled “Conservation Commissions”, as enacted by chapter 203 of the Public Laws, 1960; (8) To assign or reassign, with the approval of the governor, any functions, duties, or powers established by this chapter to any agency within the department, except as hereinafter limited; (9) To cooperate with the water resources board and to provide to the board facilities, administrative support, staff services, and other services as the board shall reasonably require for its operation and, in cooperation with the board and the statewide planning program, to formulate and maintain a long-range guide plan and implementing program for development of major water- sources transmission systems needed to furnish water to regional and local distribution systems; (10) To cooperate with the solid waste management corporation and to provide to the corporation such facilities, administrative support, staff services, and other services within the department as the corporation shall reasonably require for its operation; (11) To provide for the maintenance of waterways and boating facilities, consistent with chapter 6.1 of title 46, by: (i) Establishing minimum standards for upland beneficial use and disposal of dredged material; (ii) Promulgating and enforcing rules for water quality, groundwater protection, and fish and wildlife protection pursuant to § 42-17.1-24; (iii) Planning for the upland beneficial use and/or disposal of dredged material in areas not under the jurisdiction of the council pursuant to § 46-23-6(2); (iv) Cooperating with the coastal resources management council in the development and implementation of comprehensive programs for dredging as provided for in §§ 46-23-6(1)(ii)(H) and 46-23-18.3; and (v) Monitoring dredge material management and disposal sites in accordance with the protocols established pursuant to § 46-6.1-5(a)(3) and the comprehensive program provided for in § 46-23-6(1)(ii)(H); no powers or duties granted herein shall be construed to abrogate the powers or duties granted to the coastal resources management council under chapter 23 of title 46, as amended; (12) To establish minimum standards, subject to the approval of the environmental standards board, relating to the location, design, construction, and maintenance of all sewage disposal systems; (13) To enforce, by such means as provided by law, the standards for the quality of air, and water, and the design, construction, and operation of all sewage disposal systems; any order or notice issued by the director relating to the location, design, construction, or maintenance of a sewage disposal system shall be eligible for recordation under chapter 13 of title 34. The director shall forward the order or notice to the city or town wherein the subject property is located and the order or notice shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject property is located. Any subsequent transferee of that property shall be responsible for complying with the requirements of the order or notice. Upon satisfactory completion of the requirements of the order or notice, the director shall provide written notice of the same, which notice shall be similarly eligible for recordation. The original written notice shall be forwarded to the city or town wherein the subject property is located and the notice of satisfactory completion shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject property is located. A copy of the written notice shall be forwarded to the owner of the subject property within five (5) days of a request for it, and, in any event, shall be forwarded to the owner of the subject property within thirty (30) days after correction; (14) To establish minimum standards for the establishment and maintenance of salutary environmental conditions, including standards and methods for the assessment and the consideration of the cumulative effects on the environment of regulatory actions and decisions, which standards for consideration of cumulative effects shall provide for: (i) Evaluation of potential cumulative effects that could adversely affect public health and/or impair ecological functioning; (ii) Analysis of other matters relative to cumulative effects as the department may deem appropriate in fulfilling its duties, functions, and powers; which standards and methods shall only be applicable to ISDS systems in the town of Jamestown in areas that are dependent for water supply on private and public wells, unless broader use is approved by the general assembly. The department shall report to the general assembly not later than March 15, 2008, with regard to the development and application of the standards and methods in Jamestown; (15) To establish and enforce minimum standards for permissible types of septage, industrial-waste disposal sites, and waste-oil disposal sites; (16) To establish minimum standards, subject to the approval of the environmental standards board, for permissible types of refuse disposal facilities; the design, construction, operation, and maintenance of disposal facilities; and the location of various types of facilities; (17) To exercise all functions, powers, and duties necessary for the administration of chapter 19.1 of title 23 entitled “Rhode Island Hazardous Waste Management Act”; (18) To designate, in writing, any person in any department of the state government or any official of a district, county, city, town, or other governmental unit, with that official’s consent, to enforce any rule, regulation, or order promulgated and adopted by the director under any provision of law; provided, however, that enforcement of powers of the coastal resources management council shall be assigned only to employees of the department of environmental management, except by mutual agreement or as otherwise provided in chapter 23 of title 46; (19) To issue and enforce the rules, regulations, and orders as may be necessary to carry out the duties assigned to the director and the department by any provision of law; and to conduct investigations and hearings and to issue, suspend, and revoke licenses as may be necessary to enforce those rules, regulations, and orders. Any license suspended under the rules, regulations, and/or orders shall be terminated and revoked if the conditions that led to the suspension are not corrected to the satisfaction of the director within two (2) years; provided that written notice is given by certified mail, return receipt requested, no less than sixty (60) days prior to the date of termination. Notwithstanding the provisions of § 42-35-9 to the contrary, no informal disposition of a contested licensing matter shall occur where resolution substantially deviates from the original application unless all interested parties shall be notified of the proposed resolution and provided with opportunity to comment upon the resolution pursuant to applicable law and any rules and regulations established by the director; (20) To enter, examine, or survey, at any reasonable time, places as the director deems necessary to carry out the director’s responsibilities under any provision of law subject to the following provisions: (i) For criminal investigations, the director shall, pursuant to chapter 5 of title 12, seek a search warrant from an official of a court authorized to issue warrants, unless a search without a warrant is otherwise allowed or provided by law; (ii)(A) All administrative inspections shall be conducted pursuant to administrative guidelines promulgated by the department in accordance with chapter 35 of this title; (B) A warrant shall not be required for administrative inspections if conducted under the following circumstances, in accordance with the applicable constitutional standards: (I) For closely regulated industries; (II) In situations involving open fields or conditions that are in plain view; (III) In emergency situations; (IV) In situations presenting an imminent threat to the environment or public health, safety, or welfare; (V) If the owner, operator, or agent in charge of the facility, property, site, or location consents; or (VI) In other situations in which a warrant is not constitutionally required. (C) Whenever it shall be constitutionally or otherwise required by law, or whenever the director in the director’s discretion deems it advisable, an administrative search warrant, or its functional equivalent, may be obtained by the director from a neutral magistrate for the purpose of conducting an administrative inspection. The warrant shall be issued in accordance with the applicable constitutional standards for the issuance of administrative search warrants. The administrative standard of probable cause, not the criminal standard of probable cause, shall apply to applications for administrative search warrants; (I) The need for, or reliance upon, an administrative warrant shall not be construed as requiring the department to forfeit the element of surprise in its inspection efforts; (II) An administrative warrant issued pursuant to this subsection must be executed and returned within ten (10) days of its issuance date unless, upon a showing of need for additional time, the court orders otherwise; (III) An administrative warrant may authorize the review and copying of documents that are relevant to the purpose of the inspection. If documents must be seized for the purpose of copying, and the warrant authorizes the seizure, the person executing the warrant shall prepare an inventory of the documents taken. The time, place, and manner regarding the making of the inventory shall be set forth in the terms of the warrant itself, as dictated by the court. A copy of the inventory shall be delivered to the person from whose possession or facility the documents were taken. The seized documents shall be copied as soon as feasible under circumstances preserving their authenticity, then returned to the person from whose possession or facility the documents were taken; (IV) An administrative warrant may authorize the taking of samples of air, water, or soil or of materials generated, stored, or treated at the facility, property, site, or location. Upon request, the department shall make split samples available to the person whose facility, property, site, or location is being inspected; (V) Service of an administrative warrant may be required only to the extent provided for in the terms of the warrant itself, by the issuing court. (D) Penalties. Any willful and unjustified refusal of right of entry and inspection to department personnel pursuant to an administrative warrant shall constitute a contempt of court and shall subject the refusing party to sanctions, which in the court’s discretion may result in up to six (6) months’ imprisonment and/or a monetary fine of up to ten thousand dollars ($10,000) per refusal; (21) To give notice of an alleged violation of law to the person responsible therefor whenever the director determines that there are reasonable grounds to believe that there is a violation of any provision of law within the director’s jurisdiction or of any rule or regulation adopted pursuant to authority granted to the director. Nothing in this chapter shall limit the authority of the attorney general to prosecute offenders as required by law; (i) The notice shall provide for a time within which the alleged violation shall be remedied, and shall inform the person to whom it is directed that a written request for a hearing on the alleged violation may be filed with the director within twenty (20) days after service of the notice. The notice will be deemed properly served upon a person if a copy thereof is served the person personally; or sent by registered or certified mail to the person’s last known address; or if the person is served with notice by any other method of service now or hereafter authorized in a civil action under the laws of this state. If no written request for a hearing is made to the director within twenty (20) days of the service of notice, the notice shall automatically become a compliance order; (ii)(A) Whenever the director determines that there exists a violation of any law, rule, or regulation within the director’s jurisdiction that requires immediate action to protect the environment, the director may, without prior notice of violation or hearing, issue an immediate- compliance order stating the existence of the violation and the action the director deems necessary. The compliance order shall become effective immediately upon service or within such time as is specified by the director in such order. No request for a hearing on an immediate-compliance order 20 may be made; (B) Any immediate-compliance order issued under this section without notice and prior hearing shall be effective for no longer than forty-five (45) days; provided, however, that for good cause shown, the order may be extended one additional period not exceeding forty-five (45) days; (iii) The director may, at the director’s discretion and for the purposes of timely and effective resolution and return to compliance, cite a person for alleged noncompliance through the issuance of an expedited citation in accordance with § 42-17.6-3(c); (iv) If a person upon whom a notice of violation has been served under the provisions of this section or if a person aggrieved by any such notice of violation requests a hearing before the director within twenty (20) days of the service of notice of violation, the director shall set a time and place for the hearing, and shall give the person requesting that hearing at least five (5) days’ written notice thereof. After the hearing, the director may make findings of fact and shall sustain, modify, or withdraw the notice of violation. If the director sustains or modifies the notice, that decision shall be deemed a compliance order and shall be served upon the person responsible in any manner provided for the service of the notice in this section; (v) The compliance order shall state a time within which the violation shall be remedied, and the original time specified in the notice of violation shall be extended to the time set in the order; (vi) Whenever a compliance order has become effective, whether automatically where no hearing has been requested, where an immediate-compliance order has been issued, or upon decision following a hearing, the director may institute injunction proceedings in the superior court of the state for enforcement of the compliance order and for appropriate temporary relief, and in that proceeding, the correctness of a compliance order shall be presumed and the person attacking the order shall bear the burden of proving error in the compliance order, except that the director shall bear the burden of proving in the proceeding the correctness of an immediate-compliance order. The remedy provided for in this section shall be cumulative and not exclusive and shall be in addition to remedies relating to the removal or abatement of nuisances or any other remedies provided by law; (vii) Any party aggrieved by a final judgment of the superior court may, within thirty (30) days from the date of entry of such judgment, petition the supreme court for a writ of certiorari to review any questions of law. The petition shall set forth the errors claimed. Upon the filing of the petition with the clerk of the supreme court, the supreme court may, if it sees fit, issue its writ of certiorari; (22) To impose administrative penalties in accordance with the provisions of chapter 17.6 of this title and to direct that such penalties be paid into the account established by subsection (26); (23) The following definitions shall apply in the interpretation of the provisions of this chapter: (i) Director : The term “director” shall mean the director of environmental management of the state of Rhode Island or the director’s duly authorized agent; (ii) Person: The term “person” shall include any individual, group of individuals, firm, corporation, association, partnership, or private or public entity, including a district, county, city, town, or other governmental unit or agent thereof, and in the case of a corporation, any individual having active and general supervision of the properties of the corporation; (iii) Service : (A) Service upon a corporation under this section shall be deemed to include service upon both the corporation and upon the person having active and general supervision of the properties of the corporation; (B) For purposes of calculating the time within which a claim for a hearing is made pursuant to subsection (21)(i), service shall be deemed to be the date of receipt of such notice or three (3) days from the date of mailing of the notice, whichever shall first occur; (24)(i) To conduct surveys of the present private and public camping and other recreational areas available and to determine the need for and location of other camping and recreational areas as may be deemed necessary and in the public interest of the state of Rhode Island and to report back its findings on an annual basis to the general assembly on or before March 1 of every year; (ii) Additionally, the director of the department of environmental management shall take additional steps, including, but not limited to, matters related to funding as may be necessary to establish such other additional recreational facilities and areas as are deemed to be in the public interest; (25)(i) To apply for and accept grants and bequests of funds, with the approval of the director of administration, from other states, interstate agencies, and independent authorities, and private firms, individuals, and foundations, for the purpose of carrying out the director’s lawful responsibilities. The funds shall be deposited with the general treasurer in a restricted receipt account created in the natural resources program for funds made available for that program’s purposes or in a restricted receipt account created in the environmental protection program for funds made available for that program’s purposes. All expenditures from the accounts shall be subject to appropriation by the general assembly, and shall be expended in accordance with the provisions of the grant or bequest. In the event that a donation or bequest is unspecified, or in the event that the trust account balance shows a surplus after the project as provided for in the grant or bequest has been completed, the director may utilize the appropriated unspecified or appropriated surplus funds for enhanced management of the department’s forest and outdoor public recreation areas, or other projects or programs that promote the accessibility of recreational opportunities for Rhode Island residents and visitors; (ii) The director shall submit to the house fiscal advisor and the senate fiscal advisor, by 25 October 1 of each year, a detailed report on the amount of funds received and the uses made of such funds; (26) To establish fee schedules by regulation, with the approval of the governor, for the processing of applications and the performing of related activities in connection with the department’s responsibilities pursuant to subsection (12); chapter 19.1 of title 23, as it relates to inspections performed by the department to determine compliance with chapter 19.1 and rules and regulations promulgated in accordance therewith; chapter 18.9 of title 23, as it relates to inspections performed by the department to determine compliance with chapter 18.9 and the rules and regulations promulgated in accordance therewith; chapters 19.5 and 23 of title 23; chapter 12 of title 46, insofar as it relates to water-quality certifications and related reviews performed pursuant to provisions of the federal Clean Water Act, 33 U.S.C. § 1251 et seq.; the regulation and administration of underground storage tanks and all other programs administered under chapter 12 of title 46 and § 2-1-18 et seq., and chapter 13.1 of title 46 and chapter 13.2 of title 46, insofar as they relate to any reviews and related activities performed under the provisions of the Groundwater Protection Act; chapter 24.9 of title 23 as it relates to the regulation and administration of mercury- added products; and chapter 17.7 of this title, insofar as it relates to administrative appeals of all enforcement, permitting, and licensing matters to the administrative adjudication division for environmental matters. Two (2) fee ranges shall be required: for “Appeal of enforcement actions,” a range of fifty dollars ($50) to one hundred dollars ($100), and for “Appeal of application decisions,” a range of five hundred dollars ($500) to ten thousand dollars ($10,000). The monies from the administrative adjudication fees will be deposited as general revenues and the amounts appropriated shall be used for the costs associated with operating the administrative adjudication division. There is hereby established an account within the general fund to be called the water and air protection program. The account shall consist of sums appropriated for water and air pollution control and waste-monitoring programs and the state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of the sums, or portions thereof, as may be required, from time to time, upon receipt by him or her of properly authenticated vouchers. All amounts collected under the authority of this subsection (26) for the sewage-disposal- system program and freshwater wetlands program will be deposited as general revenues and the amounts appropriated shall be used for the purposes of administering and operating the programs. The director shall submit to the house fiscal advisor and the senate fiscal advisor by January 15 of each year a detailed report on the amount of funds obtained from fines and fees and the uses made of the funds; (27) To establish and maintain a list or inventory of areas within the state worthy of special designation as “scenic” to include, but not be limited to, certain state roads or highways, scenic vistas, and scenic areas, and to make the list available to the public; (28) To establish and maintain an inventory of all interests in land held by public and private land trust and to exercise all powers vested herein to ensure the preservation of all identified lands; (i) The director may promulgate and enforce rules and regulations to provide for the orderly and consistent protection, management, continuity of ownership and purpose, and centralized records-keeping for lands, water, and open spaces owned in fee or controlled in full or in part through other interests, rights, or devices such as conservation easements or restrictions, by private and public land trusts in Rhode Island. The director may charge a reasonable fee for filing of each document submitted by a land trust; (ii) The term “public land trust” means any public instrumentality created by a Rhode Island municipality for the purposes stated herein and financed by means of public funds collected and appropriated by the municipality. The term “private land trust” means any group of five (5) or more private citizens of Rhode Island who shall incorporate under the laws of Rhode Island as a nonbusiness corporation for the purposes stated herein, or a national organization such as the nature conservancy. The main purpose of either a public or a private land trust shall be the protection, acquisition, or control of land, water, wildlife, wildlife habitat, plants, and/or other natural features, areas, or open space for the purpose of managing or maintaining, or causing to be managed or maintained by others, the land, water, and other natural amenities in any undeveloped and relatively natural state in perpetuity. A private land trust must be granted exemption from federal income tax under Internal Revenue Code 501(c)(3) [26 U.S.C. § 501(c)(3)] within two (2) years of its incorporation in Rhode Island or it may not continue to function as a land trust in Rhode Island. A private land trust may not be incorporated for the exclusive purpose of acquiring or accepting property or rights in property from a single individual, family, corporation, business, partnership, or other entity. Membership in any private land trust must be open to any individual subscribing to the purposes of the land trust and agreeing to abide by its rules and regulations including payment of reasonable dues; (iii)(A) Private land trusts will, in their articles of association or their bylaws, as appropriate, provide for the transfer to an organization, created for the same or similar purposes, of the assets, lands and land rights, and interests held by the land trust in the event of termination or dissolution of the land trust; (B) All land trusts, public and private, will record in the public records, of the appropriate towns and cities in Rhode Island, all deeds, conservation easements, or restrictions or other interests and rights acquired in land and will also file copies of all such documents and current copies of their articles of association, their bylaws, and their annual reports with the secretary of state and with the director of the Rhode Island department of environmental management. The director is hereby directed to establish and maintain permanently a system for keeping records of all private and public land trust land holdings in Rhode Island; (29) The director will contact in writing, not less often than once every two (2) years, each public or private land trust to ascertain: that all lands held by the land trust are recorded with the director; the current status and condition of each land holding; that any funds or other assets of the land trust held as endowment for specific lands have been properly audited at least once within the two-year (2) period; the name of the successor organization named in the public or private land trust’s bylaws or articles of association; and any other information the director deems essential to the proper and continuous protection and management of land and interests or rights in land held by the land trust. In the event that the director determines that a public or private land trust holding land or interest in land appears to have become inactive, the director shall initiate proceedings to effect the termination of the land trust and the transfer of its lands, assets, land rights, and land interests to the successor organization named in the defaulting trust’s bylaws or articles of association or to another organization created for the same or similar purposes. Should such a transfer not be possible, then the land trust, assets, and interest and rights in land will be held in trust by the state of Rhode Island and managed by the director for the purposes stated at the time of original acquisition by the trust. Any trust assets or interests other than land or rights in land accruing to the state under such circumstances will be held and managed as a separate fund for the benefit of the designated trust lands; (30) Consistent with federal standards, issue and enforce such rules, regulations, and orders as may be necessary to establish requirements for maintaining evidence of financial responsibility for taking corrective action and compensating third parties for bodily injury and property damage caused by sudden and non-sudden accidental releases arising from operating underground storage tanks; (31) To enforce, by such means as provided by law, the standards for the quality of air, and water, and the location, design, construction, and operation of all underground storage facilities used for storing petroleum products or hazardous materials; any order or notice issued by the director relating to the location, design, construction, operation, or maintenance of an underground storage facility used for storing petroleum products or hazardous materials shall be eligible for recordation under chapter 13 of title 34. The director shall forward the order or notice to the city or town wherein the subject facility is located, and the order or notice shall be recorded in the general index by the appropriate municipal officer in the land evidence records in the city or town wherein the subject facility is located. Any subsequent transferee of that facility shall be responsible for complying with the requirements of the order or notice. Upon satisfactory completion of the requirements of the order or notice, the director shall provide written notice of the same, which notice shall be eligible for recordation. The original, written notice shall be forwarded to the city or town wherein the subject facility is located, and the notice of satisfactory completion shall be recorded in the general index by the appropriate municipal official in the land evidence records in the city or town wherein the subject facility is located. A copy of the written notice shall be forwarded to the owner of the subject facility within five (5) days of a request for it, and, in any event, shall be forwarded to the owner of the subject facility within thirty (30) days after correction; (32) To manage and disburse any and all funds collected pursuant to § 46-12.9-4, in accordance with § 46-12.9-5, and other provisions of the Rhode Island Underground Storage Tank Financial Responsibility Act, as amended; (33) To support, facilitate, and assist the Rhode Island Natural History Survey, as appropriate and/or as necessary, in order to accomplish the important public purposes of the survey in gathering and maintaining data on Rhode Island natural history; making public presentations and reports on natural history topics; ranking species and natural communities; monitoring rare species and communities; consulting on open-space acquisitions and management plans; reviewing proposed federal and state actions and regulations with regard to their potential impact on natural communities; and seeking outside funding for wildlife management, land management, and research; (34) To promote the effective stewardship of lakes, ponds, rivers, and streams including, but not limited to, collaboration with watershed organizations and associations of lakefront property owners on planning and management actions that will prevent and mitigate water quality degradation, reduce the loss of native habitat due to infestation of non-native species, abate nuisance conditions that result from excessive growth of algal or non-native plant species as well as promote healthy freshwater riverine ecosystems; (35) In implementing the programs established pursuant to this chapter, to identify critical areas for improving service to customers doing business with the department, and to develop and implement strategies to improve performance and effectiveness in those areas. Key aspects of a customer-service program shall include, but not necessarily be limited to, the following components: (i) Maintenance of an organizational unit within the department with the express purpose of providing technical assistance to customers and helping customers comply with environmental regulations and requirements; (ii) Maintenance of an employee training program to promote customer service across the department; (iii) Implementation of a continuous business process evaluation and improvement effort, including process reviews to encourage development of quality proposals; ensure timely and predictable reviews; and result in effective decisions and consistent follow up and implementation throughout the department; and publish an annual report on such efforts; (iv) Creation of a centralized location for the acceptance of permit applications and other submissions to the department; (v) Maintenance of a process to promote, organize, and facilitate meetings prior to the submission of applications or other proposals in order to inform the applicant on options and opportunities to minimize environmental impact; improve the potential for sustainable environmental compliance; and support an effective and efficient review and decision-making process on permit applications related to the proposed project; (vi) Development of single permits under multiple authorities otherwise provided in state law to support comprehensive and coordinated reviews of proposed projects. The director may address and resolve conflicting or redundant process requirements in order to achieve an effective and efficient review process that meets environmental objectives; and (vii) Exploration of the use of performance-based regulations coupled with adequate inspection and oversight, as an alternative to requiring applications or submissions for approval prior to initiation of projects; (36) To formulate and promulgate regulations requiring any dock or pier longer than twenty feet (20′) and located on a freshwater lake or pond to be equipped with reflective materials, on all sides facing the water, of an appropriate width and luminosity such that it can be seen by operators of watercraft; (37) To temporarily waive any control or prohibition respecting the use of a fuel or fuel additive required or regulated by the department if the director finds that: (i) Extreme or unusual fuel or fuel additive supply circumstances exist in the state or the New England region that prevent the distribution of an adequate supply of the fuel or fuel additive to consumers; (ii) Extreme or unusual fuel or fuel additive supply circumstances are the result of a natural disaster, an act of God, a pipeline or refinery equipment failure, or another event that could not reasonably have been foreseen; and (iii) It is in the public interest to grant the waiver. Any temporary waiver shall be made in writing and shall be effective for twenty (20) calendar days; provided, that the director may renew the temporary waiver, in writing, if it is deemed necessary; and (38)(i) To designate by rule certain waters of the state as shellfish or marine life project management areas for the purpose of enhancing the cultivation and growth of marine species, managing the harvest of marine species, facilitating the conduct by the department of experiments in planting, cultivating, propagating, managing, and developing any and all kinds of marine life, and any other related purpose. (ii) Any such designation shall be by reference to fixed landmarks and include an explicit description of the area to be designated. (iii) Once so designated, the director may adopt rules and regulations addressing restrictions on the quantities, types, or sizes of marine species that may be taken in any individual management area, the times during which marine species may be taken, the manner or manners in that marine species may be taken, the closure of such area to the taking of marine species, or any other specific restrictions as may be deemed necessary. Such rules shall be exempt from the requirements of §§ 42-35-2.7, 42-35-2.8, and 42-35-2.9. (iv) The director, upon the designation of a management area, may place any stakes, bounds, buoys, or markers with the words “Rhode Island department of environmental management” plainly marked on them, as will approximate the management area. Failure to place or maintain the stakes, bounds, buoys, or markers shall not be admissible in any judicial or administrative proceeding. (v) Nothing in this section shall prevent the director from implementing emergency rules 14 pursuant to § 42-35-2.10. (39) To enter into agreements with such departments, divisions, agencies, or boards of the state to regulate, manage, or perform related functions on any lands or waters acquired under the provisions of the Big River — Wood River Reservoir Site Acquisition Act (P.L. of 1964, chapter 133). SECTION 8. Sections 42-64.20-5 and 42-64.20-10 of the General Laws in Chapter 42- 64.20 entitled “Rebuild Rhode Island Tax Credit Act” are hereby amended to read as follows: 21 42-64.20-5. Tax credits. (a) An applicant meeting the requirements of this chapter may be allowed a credit as set forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of the general laws for a qualified development project. (b) To be eligible as a qualified development project entitled to tax credits, an applicant’s chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the time of application, that: (1) The applicant has committed a capital investment or owner equity of not less than twenty percent (20%) of the total project cost; (2) There is a project financing gap in which after taking into account all available private and public funding sources, the project is not likely to be accomplished by private enterprise without the tax credits described in this chapter; and (3) The project fulfills the state’s policy and planning objectives and priorities in that: (i) The applicant will, at the discretion of the commerce corporation, obtain a tax stabilization agreement from the municipality in which the real estate project is located on such terms as the commerce corporation deems acceptable; (ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied by at least one business employing at least 25 full-time employees after construction or such additional full-time employees as the commerce corporation may determine; (B) Is a multi-family residential development in a new, adaptive reuse, certified historic structure, or recognized historical structure consisting of at least 20,000 square feet and having at least 20 residential units in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at least one business, subject to further definition through rules and regulations promulgated by the commerce corporation; and (iii) Involves a total project cost of not less than $5,000,000, except for a qualified development project located in a hope community or redevelopment area designated under § 45- 32-4 in which event the commerce corporation shall have the discretion to modify the minimum project cost requirement. (4) Until July 1, 2025, pursuant to P.L. 2022 ch. 271 and P.L. 2022 ch. 272, for construction projects in excess of ten million dollars ($10,000,000), all construction workers shall be paid in accordance with the wages and benefits required pursuant to chapter 13 of title 37 with all contractors and subcontractors required to file certified payrolls on a monthly basis for all work completed in the preceding month on a uniform form prescribed by the director of labor and training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a material violation and a material breach of the agreement with the state. The commerce corporation, in consultation with the director of labor and training and the tax administrator, shall promulgate such rules and regulations as are necessary to implement the enforcement of this subsection. The provisions of this subsection shall expire and sunset on July 1, 2025. (5) Notwithstanding any general or special law or rule or regulation to the contrary, for construction projects that have executed a tax credit agreement on or after July 1, 2025, and involving a budget of direct hard construction costs (as defined in § 44-33.6-2) in excess of twenty- five million dollars ($25,000,000), all construction workers shall be paid in accordance with the wages and benefits required pursuant to chapter 13 of title 37 with all contractors and subcontractors required to file certified payrolls on a monthly basis for all work completed in the preceding month on a uniform form prescribed by the director of labor and training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a material violation and a material breach of the agreement with the state. The commerce corporation, in consultation with the director of labor and training and the tax administrator, shall promulgate such rules and regulations as are necessary to implement the enforcement of this subsection. (c) The commerce corporation shall develop separate, streamlined application processes for the issuance of rebuild RI tax credits for each of the following: (1) Qualified development projects that involve certified historic structures; (2) Qualified development projects that involve recognized historical structures; (3) Qualified development projects that involve at least one manufacturer; and (4) Qualified development projects that include affordable housing or workforce housing. (d) Applications made for a historic structure or recognized historic structure tax credit under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of taxation, at the expense of the commerce corporation, shall provide communications from the commerce corporation to those who have applied for and are in the queue awaiting the offer of tax credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax credit program. (e) Applicants (1) Who have received the notice referenced in subsection (d) above and who may be eligible for a tax credit pursuant to chapter 33.6 of title 44; (2) Whose application involves a certified historic structure or recognized historical structure; or (3) Whose project is occupied by at least one manufacturer shall be exempt from the requirements of subsections (b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants: (i) The division of taxation shall remain responsible for determining the eligibility of an applicant for tax credits awarded under chapter 33.6 of title 44; (ii) The commerce corporation shall retain sole authority for determining the eligibility of an applicant for tax credits awarded under this chapter; (iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this subsection (e); and (iv) No tax credits shall be awarded under this chapter unless the commerce corporation receives confirmation from the department of labor and training that there has been compliance with the prevailing wage requirements set forth in subsection (b) of this section. (f) Maximum project credit. (1) For qualified development projects, the maximum tax credit allowed under this chapter shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to close a project financing gap (after taking into account all other private and public funding sources available to the project), as determined by the commerce corporation. (2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000) for any qualified development project under this chapter; except as provided in subsection (f)(3) of this section; provided however, any qualified development project that exceeds the project cap upon passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further increased. No building or qualified development project to be completed in phases or in multiple projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all phases or projects involved in the rehabilitation of the building. Provided, however, that for purposes of this subsection and no more than once in a given fiscal year, the commerce corporation 10 may consider the development of land and buildings by a developer on the “I-195 land” as defined in § 42-64.24-3(6) as a separate, qualified development project from a qualified development project by a tenant or owner of a commercial condominium or similar legal interest including leasehold improvement, fit out, and capital investment. Such qualified development project by a tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be exempted from subsection (f)(1)(i) of this section. (3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars ($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that project is approved for credits pursuant to this chapter by the commerce corporation. (4) For qualified development projects involving the development of housing and mixed use projects involving housing which are restricted to require at least twenty percent (20%) of the housing units being affordable housing or workforce housing development for residents making no more than between eighty percent (80%) and one hundred twenty percent (120%) of the area median income (AMI) shall be allowed sales and use tax exemptions of up to thirty percent (30%) of the maximum project credit in addition to the maximum project credit of fifteen million dollars ($15,000,000) pursuant to this chapter. Any sales and use tax exemptions allowed in addition to the maximum project credit shall be for purchases made by June 30, 2028. (g) Credits available under this chapter shall not exceed twenty percent (20%) of the project cost, provided, however, that the applicant shall be eligible for additional tax credits of not more than ten percent (10%) of the project cost, if the qualified development project meets any of the following criteria or other additional criteria determined by the commerce corporation from time to time in response to evolving economic or market conditions: (1) The project includes adaptive reuse or development of a recognized historical structure; (2) The project is undertaken by or for a targeted industry; (3) The project is located in a transit-oriented development area; (4) The project includes residential development of which at least twenty percent (20%) of the residential units are designated as affordable housing or workforce housing; (5) The project includes the adaptive reuse of property subject to the requirements of the industrial property remediation and reuse act, § 23-19.14-1 et seq.; or (6) The project includes commercial facilities constructed in accordance with the minimum environmental and sustainability standards, as certified by the commerce corporation pursuant to Leadership in Energy and Environmental Design or other equivalent standards. (h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter , inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed two hundred twenty-five seventy million dollars ($225,000,000) two hundred fifty million dollars ($250,000,000) , excluding any tax credits allowed pursuant to subsection (f)(3) of this section. (i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the project is placed in service. (j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent (15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable year. (k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total tax liability for the year in which the relevant portion of the credit is allowed, the amount that exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed to a partnership, a limited liability company taxed as a partnership, or multiple owners of property shall be passed through to the persons designated as partners, members, or owners respectively pro rata or pursuant to an executed agreement among persons designated as partners, members, or owners documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity. (l) The commerce corporation, in consultation with the division of taxation, shall establish, by regulation, the process for the assignment, transfer, or conveyance of tax credits. (m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds, without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a natural person, the seller’s tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable, for the year of revocation, or adjustment, shall be increased by including the total amount of the sales proceeds without proration. (n) The tax credit allowed under this chapter may be used as a credit against corporate income taxes imposed under chapter 11, 13, 14, or 17 of title 44, or may be used as a credit against personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such as a partnership, a limited liability company taxed as a partnership, or multiple owners of property. (o) In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return. (p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division of taxation, in consultation with the commerce corporation, shall establish by regulation a redemption process for tax credits. (q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the commerce corporation, be exempt from sales and use taxes imposed on the purchase of the following classes of personal property only to the extent utilized directly and exclusively in the project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles; or (2) Other materials, including construction materials and supplies, that are depreciable and have a useful life of one year or more and are essential to the project. (r) The commerce corporation shall promulgate rules and regulations for the administration and certification of additional tax credit under subsection (g), including criteria for the eligibility, evaluation, prioritization, and approval of projects that qualify for such additional tax credit. (s) The commerce corporation shall not have any obligation to make any award or grant any benefits under this chapter. 27 42-64.20-10. Sunset. 28 No credits shall be authorized to be reserved pursuant to this chapter after December 31, 29 2026 December 31, 2027 . 30 SECTION 9. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled “Rhode 31 Island Tax Increment Financing” is hereby amended to read as follows: 32 42-64.21-9. Sunset. 33 The commerce corporation shall enter into no agreement under this chapter after December 34 31, 2026 December 31, 2027 . 1 SECTION 10. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled “Tax 2 Stabilization Incentive” is hereby amended to read as follows: 3 42-64.22-15. Sunset. 4 The commerce corporation shall enter into no agreement under this chapter after December 5 31, 2026 December 31, 2027 . 6 SECTION 11. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled “First 7 Wave Closing Fund Act” is hereby amended to read as follows: 8 42-64.23-8. Sunset. 9 No financing shall be authorized to be reserved pursuant to this chapter after December 31, 10 2026 December 31, 2027 . 11 SECTION 12. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled “I-195 12 Redevelopment Project Fund Act” is hereby amended as follows: 13 42-64.24-8. Sunset. 14 No funding, credits, or incentives shall be authorized or authorized to be reserved pursuant 15 to this chapter after December 31, 2026 December 31, 2027 . 16 SECTION 13. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled “Stay 17 Invested in RI Wavemaker Fellowship” is hereby amended to read as follows: 18 42-64.26-12. Sunset. 19 No incentives or credits shall be authorized pursuant to this chapter after December 31, 20 2026 December 31, 2027 . 21 SECTION 14. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled “Main 22 Street Rhode Island Streetscape Improvement Fund” is hereby amended as follows: 23 42-64.27-6. Sunset. 24 No incentives shall be authorized pursuant to this chapter after December 31, 25 2026 December 31, 2027 . 26 SECTION 15. Section 42-64.28-10 of the General Laws in Chapter 42-64.28 entitled 27 “Innovation Initiative” is hereby amended as follows: 28 42-64.28-10. Sunset. 29 No vouchers, grants, or incentives shall be authorized pursuant to this chapter after 30 December 31, 2026 December 31, 2027 . SECTION 16. Chapter 42-140 of the General Laws entitled "Rhode Island Energy Resources Act" is hereby amended by adding thereto the following section: 42-140-13. Energy Benchmarking and Performance Standards Program (a) Definitions. For the purposes of this section: (1) “Department” shall mean all state departments whose directors are enumerated in R.I. Gen. Laws § 42-6-3 and shall additionally include the executive office of health and human services, the executive office of commerce, and the executive office of housing. (2) “Public buildings” for the purpose of this section shall mean all municipal and school buildings owned by a municipality that are at least 25,000 gross square feet. (3) “State-owned, state-occupied facilities” shall mean buildings owned by the state that primarily contain offices or other administrative work space for state employees and are at least 25,000 gross square feet. (b) State Facilities Energy Usage Reporting (1) State departments, coordinated and supported by the office of energy resources, shall be required to measure and report monthly energy usage by energy source for their respective state- owned, state-occupied facilities, as well as the gross square footage for each building. (2) Beginning March 31, 2029, and recurring annually thereafter, departments, coordinated and supported by the office of energy resources, shall report to the office energy use data by source for state-owned, state-occupied facilities for the preceding calendar year. No later than 180 days from the March 31 reporting deadline each year, the office shall compile, publish and post on its website each facility’s energy use data by fuel and total emissions. (c) State Facilities Benchmarking and Performance Standards Program (1) Utilizing the data due March 31, 2029, in subsection (b)(2), the office of energy resources shall, with consultation from departments, develop and publish performance standards for state-owned, state-occupied facilities by March 31, 2030 and may update the performance standards and any revision to the standards thereafter. The performance standards published must include: (i) An annualized emissions standard based on energy usage for each state-owned, state- occupied facility as necessary, to achieve by specified dates; (ii) A schedule for compliance terminating in 2050; and (iii) The cost-benefit analysis used to determine which state-owned, state-occupied facilities are assigned performance standards, as set forth in subsection (c)(2) below. (2) The performance standards shall be determined by evaluating: (i) The total amount of emissions reductions that could be achieved while maintaining state operations; (ii) The relative contribution of the emissions reductions to decadal targets established by R.I. Gen. Laws § 42-6.2-2 compared to other strategies, programs, and actions established by the executive climate change coordinating council in its plan due December 31, 2025, in accordance with subsection (2)(i) of R.I. Gen. Laws § 42-6.2-2; and (iii) The fiscal impacts of achieving the performance standards. (3) The departments shall meet the performance standards set in accordance with subsection (c)(2). No later than 90 days after each specified compliance date established in accordance with subsection (c)(1), the office of energy resources shall publish a performance standards compliance report demonstrating the status of each state-owned, state-occupied facility subject to a performance standard and post on its website. In the event that a state-owned, state- occupied facility fails to meet a performance standard, the office of energy resources shall provide a corrective action plan with which the state-owned, state-occupied facility shall comply within 90 days of the compliance deadline. (4) Subsections (c)(1), (c)(2), and (c)(3) shall not apply to state-owned, state-occupied facilities which the office and department of administration determine are not suitable candidates for achieving greenhouse gas emission reductions due to economic infeasibility or unique operational or physical limitations. Any such determinations shall be published in addition to the standards required in subsection (c)(2) and posted on the office’s website. (d) Voluntary Energy Benchmarking Program for Public Buildings (i) The office of energy resources shall provide technical and financial assistance to municipalities for a voluntary public buildings energy benchmarking program of public buildings on municipal properties in which buildings are greater than twenty-five thousand (25,000) square feet. (ii) The office of energy resources shall maintain a website that tracks its implementation of the voluntary public buildings energy benchmarking program. The office shall submit to the Governor and General Assembly by May 1, 2028, and annually thereafter a progress report on the voluntary public buildings energy benchmarking program. SECTION 17. Section 42-140-3 of the General Laws in Chapter 42-140 entitled “Rhode Island Energy Resources Act” is hereby amended to read as follows: 27 42-140-3. Purposes. The purposes of the office shall be to: (1) Develop and put into effect plans and programs to promote, encourage, and assist the provision of energy resources for Rhode Island in a manner that enhances economic well-being, social equity, and environmental quality; (2) Monitor, forecast, and report on energy use, energy prices, and energy demand and supply forecasts, and make findings and recommendations with regard to energy supply diversity, reliability, and procurement, including least-cost procurement; (3) Develop and to put into effect plans and programs to promote, encourage, and assist the efficient and productive use of energy resources in Rhode Island, and to coordinate energy programs for natural gas, electricity, and heating oil to maximize the aggregate benefits of conservation and efficiency of investments; (4) Monitor and report technological developments that may result in new and/or improved sources of energy supply, increased energy efficiency, and reduced environmental impacts from energy supply, transmission, and distribution; (5) Administer the programs, duties, and responsibilities heretofore exercised by the state energy office, except as these may be assigned by executive order or the general laws to other departments and agencies of state government; (6) Develop, recommend, and, as appropriate, implement integrated and/or comprehensive strategies, including at regional and federal levels, to secure Rhode Island’s interest in energy resources, their supply and efficient use, and as necessary to interact with persons, private sector, nonprofit, regional, federal entities and departments and agencies of other states to effectuate this purpose; (7) Cooperate with agencies, departments, corporations, and entities of the state and of political subdivisions of the state in achieving its purposes; (8) Cooperate with and assist the state planning council and the division of state planning in developing, maintaining, and implementing state guide plan elements pertaining to energy and renewable energy; (9) Coordinate the energy efficiency, least-cost procurement, and systems reliability plans and programs with the energy efficiency and resources management council; (10) Participate in, monitor implementation of, and provide technical assistance for the low-income home energy assistance program enhancement plan established pursuant to § 39-1- 27.12; (11) Participate in and monitor the distributed generation standard contracts program pursuant to chapter 26.2 of title 39; (12) (11) Coordinate opportunities with and enter into contracts and/or agreements with the commerce corporation associated with the energy efficiency, least-cost procurement, system reliability, and renewable energy fund programs; (13) (12) Provide support and information to the division of planning and the state planning council in the development of a ten-year (10) Rhode Island Energy Guide Plan, which shall be reviewed and amended if necessary every five (5) years; (13) Administer the federal Weatherization Assistance Program and any state or privately funded weatherization program; (14) Advise and provide technical assistance to state and federally funded energy programs to support: (i) The federal low-income home energy assistance program which provides heating assistance to eligible low-income persons and any state funded or privately funded heating assistance program of a similar nature assigned to it for administration; (ii) The weatherization assistance program which offers home weatherization grants and heating system upgrades to eligible persons of low-income; (iii) The emergency fuel program which provides oil deliveries to families experiencing a heating emergency; (iv) The energy conservation program, which offers service and programs to all sectors; (v) [Deleted by P.L. 2008, ch. 228, § 2, and P.L. 2008, ch. 422, § 2.] (15) Advise the commerce corporation in the development of standards and rules for the solicitation and award of renewable energy program investment funds in accordance with § 42-64- 13.2; (16) Develop, recommend, and evaluate energy programs for state facilities and operations in order to achieve and demonstrate the benefits of energy-efficiency, diversification of energy supplies, energy conservation, and demand management; and (17) Advise the governor and the general assembly with regard to energy resources and all matters relevant to achieving the purposes of the office. (18) Administer and implement all state energy bond referendums that are approved. SECTION 18. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled “Rhode Island Qualified Jobs Incentive Act of 2015” is hereby amended as follows: 24 44-48.3-14. Sunset. 25 No credits shall be authorized to be reserved pursuant to this chapter after December 31, 26 2026 December 31, 2027 . SECTION 19. Chapter 46-15.1 of the General Laws entitled “Water Supply Facilities” is hereby amended by adding thereto the following section: 46-15.1-23. Transfer of powers and functions from the water resources board for big river reservoir administration. The administration of lands acquired for the Big River Reservoir, as established under section 23 of chapter 133 of the Public Laws of 1964, are hereby transferred to the department of environmental management. However, all other general authority granted to the water resource board in chapters 15 and 15.1 of title 46 is hereby retained by the water resource board. SECTION 20. Section 46-15.1-5 of the General Laws in Chapter 46-15.1 entitled “Water Supply Facilities” is hereby amended to read as follows: 3 46-15.1-5. Powers. (a) The board shall carry out its functions and shall have the following powers: (1) To adopt a seal and to alter the seal from time to time; (2) To sue and be sued; (3) To purchase, hold, and dispose of real and personal property, or interests therein, and to lease the property as lessee or lessor; (4) To make or cause to be made such surveys and borings as it may deem necessary; (5) To engage engineering, legal, accounting, and other professional services; (6) To make contracts; (7) To employ personnel and fix their rates of compensation; (8) To borrow money and issue its bonds and notes as hereinafter provided; (9) To apply and contract for and to expend assistance from the United States or other sources, whether in the form of a grant or loan or otherwise; (10) To adopt and amend bylaws for the regulation of its affairs and the conduct of its business; (11) To invest or deposit funds in demand deposits, savings deposits, and time deposits in any bank or trust company which is a member of the Federal Deposit Insurance Corporation or in any obligations issued or guaranteed by the United States or any agency or instrumentality thereof, or as provided in § 35-10-11; (12) To establish, operate, and maintain or lease to others, or contract with others for the use of, such water supply facilities as may be reasonably required for the fulfillment of its purposes; (13) To purchase and sell water; (14) To exercise such other powers as may be necessary or incidental to the exercise of the foregoing powers or to the accomplishment of the purposes of the board; (15) To acquire, within the limitation of funds therefor, the sites, appurtenant marginal lands, dams, waters, water rights, rights of way, easements, and other property in interests in property for reservoirs, groundwater wells, well sites, and for such pipe lines, aqueducts, pumping stations, filtration plants, and auxiliary structures as may be necessary or desirable for the treatment and distribution of water from those reservoirs, groundwater wells, and well sites. Lands acquired under the provisions of this section shall be acquired with the approval of the governor by purchase, gift, devise, or otherwise on such terms and conditions as the board shall determine, or by the exercise of eminent domain, in accordance with the provisions of chapter 6 of title 37, as amended, insofar as those provisions are consistent with the provisions hereof; (16) To construct or purchase water reservoirs, wells and well sites, processing facilities, transmission or distribution systems, and other facilities, including existing facilities of municipal water agencies or departments, special water districts, or private water companies, necessary to accomplish the purposes of this chapter and to implement its plans and program; (17) To acquire the assets, assume the liabilities, or to effect the merger into itself of any corporation or other organization, including public or private water supply systems incorporated or organized under the laws of this state, which corporation or organization has as its principal business the establishment of water supply facilities or provision of related services, all upon such terms and for such consideration as the board shall deem to be appropriate; (18) To lease, sell, or otherwise convey any reservoir sites or other water supply or distribution facilities acquired, constructed, or purchased by the board to any municipal water agency or department or special water district or private water company, upon such terms as the board shall deem appropriate; (19) To provide for cooperative development, conservation, and use of water resources by the state, municipal agencies or departments, special water districts or privately owned water systems, the board may: (i) Authorize publicly or privately owned water supply agencies to build structures or install equipment on land owned or leased by the board. (ii) Enter into contracts with publicly or privately owned water supply agencies for operation of any facilities owned or leased by the board or operate any such facility by itself. (20) To enter into contracts to supply raw or processed water to publicly or privately owned water supply agencies, which shall be approved as to substance by the director of administration and as to form by the attorney general; (21) To review all plans and proposals for construction or installation of facilities for water supply in accordance with the applicable sections of chapter 15 of this title; (22) To make loans to publicly owned water supply agencies for acquisition, construction, and renovation of water supply facilities from funds which may be appropriated for this purpose by the general assembly, from bonds issued for this purpose, or from other funds which may become available to the board for this purpose; (23) To borrow money temporarily from the water development fund, for the purposes of this chapter, and to implement its plans and programs relating to reservoir development, exclusive of the acquisition of sites for the development of surface reservoirs, in anticipation of revenue or federal aid; and (24) To enter into contracts and/or agreements with such departments, divisions, agencies, or boards of the state as are directed by the governor to regulate, manage, or perform related functions on any lands or waters acquired under the provisions of the Big River — Wood River Reservoir Site Acquisition Act (P.L. of 1964, chapter 133); and ( 25 24 ) To compensate the departments, divisions, agencies, or boards from the water development fund in an amount equal to the cost of providing the functions or services as are directed to be performed by the governor. The compensation shall be mandatory and shall be provided according to procedures established by the department of administration. (b) The board as a body politic and corporate and public instrumentality created pursuant to this chapter is subject to § 46-15.1-5(1) — (25). The board as the state agency pursuant to chapter 15 of this title is subject to § 46-15.1-5(15) — (25). SECTION 21. Section 46-15.1-19.1 of the General Laws in Chapter 46-15.1 entitled "Water Supply Facilities" is hereby repealed: 46-15.1-19.1. Big River Reservoir — Administration. The Rhode Island water resources board, established pursuant to this chapter and chapter 15 of this title, shall be the only designated agency which will administer those lands acquired for the Big River Reservoir as established under section 23 of chapter 133 of the Public Laws of 1964. The director of the department of environmental management and the director’s authorized agents, employees, and designees shall, together with the water resources board in accordance with the Big River management area land use plan for the lands, protect the natural resources of the Big River Reservoir lands. The lands of the Big River Reservoir are subject to enforcement authority of the department of environmental management, as provided for in chapter 17.1 of title 42, and as provided for in title 20 of the General Laws. SECTION 22. Sections 46-31.1-1, 46-31.1-2 and 46-31.1-3 of the General Laws in Chapter 46-31.1 entitled “The Rhode Island Bays, Rivers and Watersheds Fund” are hereby amended to read as follows: 46-31.1-1. Legislative findings. The general assembly hereby finds and declares as follows: (1) The bays, rivers, and associated watersheds of Rhode Island are unique and unparalleled natural resources that provide significant cultural, ecological, and economic benefit to the state. (2) Pursuant to the provisions of R.I. Const., art. 1, § 17, it is the duty of the general assembly to provide for the conservation of the air, land, water, plant, animal, mineral, and other natural resources of the state; and to adopt all means necessary and proper by law to protect the natural environment of the people of the state by providing adequate resource planning for the control and regulation of the use of the natural resources of the state; and for the preservation, regeneration, and restoration of the natural environment of the state. (3) It is in the best interest of the state and its citizens to preserve, protect, and restore our bays, rivers, lakes, and associated watersheds. (4) Sixty percent (60%) of the watershed of Narragansett Bay is within Massachusetts, almost all of the watershed of Mount Hope Bay is within Massachusetts, and five percent (5%) of the watershed of Little Narragansett Bay is within Connecticut; further, a cluster of water-related economic interests spans the three (3) states. (5) There is a need to foster effective management, preservation, restoration, and monitoring of the bays, rivers, lakes, and watersheds; and the promotion of sustainable economic development of businesses that rely directly or indirectly on the bays, rivers, and watersheds. 46-31.1-2. Definitions. As used in this chapter, unless the context clearly indicates otherwise: (1) “Bays” means the estuaries including Narragansett Bay, Mount Hope Bay, Greenwich Bay, Little Narragansett Bay, the coastal ponds, the Sakonnet River, and Rhode Island territorial waters that extend seaward three geographical miles from the shoreline including the area around Block Island. (2) “Coordination” means to harmonize in a common action or effort and/or to function in a complementary manner. (3) “Lake” or “pond” means a place, natural or manmade, located wholly or partly within the State of Rhode Island, where open standing or slowly moving water is present for at least six (6) months of the year. For the purposes of this chapter, “lake” or “pond” shall exclude commercial or industrial waterbodies created for the purpose of providing cooling water, concrete or poly-lined waterbodies, and construction dewatering basins. ( 3 4 ) “River” means a flowing body of water or estuary or a section, portion, or tributary thereof, including, but not limited to, streams, creeks, brooks, ponds, and small lakes. ( 4 5 ) “Water cluster” means an economically interconnected grouping of businesses, institutions, and people relying directly or indirectly on the bays, rivers, and watersheds including, but not limited to, the following sectors: (i) Recreation, tourism, and public events; (ii) Fisheries and aquaculture; (iii) Boat and ship building; (iv) Boating-related businesses; (v) Transportation; (vi) Military; (vii) Research; and (viii) Technology development and education. ( 5 6 ) “Watershed” means a land area which because of its topography, soil type, and drainage patterns acts as a collector of raw waters which regorge or replenish rivers and existing or planned public water supplies. 46-31.1-3. Bays, Rivers and Watersheds Fund. (a) There is hereby established a restricted receipt account within the Department of Environmental Management to be called the Bays, Rivers and Watersheds Fund; (b) The fund shall consist of any funds which the state may from time to time appropriate, as well as money received as gifts, grants, bequests, donations or other funds from any public or private sources, as well as all fees collected pursuant to § 46-23-1(f)(2) for the leasing of submerged lands for transatlantic cables, and all fees collected pursuant to chapter 12.11 of this title for the disposal of septage; (c) All funds, monies, and fees collected pursuant to this section shall be deposited in the Bays, Rivers and Watersheds Fund, and shall be utilized by the Department of Environmental Management consistent with the purposes of § 46-23.2-1 entitled, “The Comprehensive Watershed and Marine Monitoring Act of 2004,” § 46-12 chapter 12 of title 46 entitled , “Water Pollution , ” chapter 33 of title 46 entitled, “Freshwater Lake Management Program,” and chapter 6.2 of title 4 2 entitled “ Resilient Rhode Island Act of 2014 Climate Change Coordination Council 2021 Act on Climate .” All expenditures from the fund shall be subject to appropriation by the general assembly. SECTION 23. Sections 46-33-1 and 46-33-2 of the General Laws in Chapter 46-33 entitled “Freshwater Lake Management Program” are hereby amended to read as follows: 46-33-1. Definitions. As used in this chapter, unless the context indicates otherwise: (1) "Aquatic invasive species" means those invasive or non-native species that inhabit water resources including lakes, ponds, rivers and streams. (2) "Coordination" means to harmonize in a common action or effort and/or to function in a complementary manner. (3) "Department" means the Rhode Island department of environmental management. (4) "Invasive species" means an alien species whose introduction does or is likely to cause economic or environmental harm, or harm to human health. (5) "Lake" or "pond" means a place, natural or manmade, located wholly or partly within the State of Rhode Island, where open standing or slowly moving water shall be present for at least six (6) months of the year. (6) "Lake association" means an association, club or other organization, formed and registered in Rhode Island, which has responsibility for stewardship and management of a freshwater lake or pond. (7) "Non-native species" means a species of plant, animal, or microbe that is: (i) Introduced to a country or region where it is not native; (ii) Is reproducing and spreading without human cultivation; and (iii) Is causing harm to native species or the areas in which they live. (8) "Rhode Island lake management fund" means the fund established by § 46-33-3. 46-33-2. Rhode Island lake management program – Established. (a) The department shall develop and implement a lake management program. The program shall include the following elements: (1) Field surveys and mapping to document the presence of aquatic invasive species in freshwaters; (2) Development and provision of guidance and technical assistance to lake associations, watershed organizations and municipalities interested in undertaking lake management actions; (3) Coordination of the implementation of lake management actions, where appropriate; (4) Oversight of lake management policy and program development; (5) Distribution of financial assistance for lake management, including control of aquatic invasive plants, as resources allow , including such sums as appropriated by the general assembly from the Bays, Rivers and Watersheds Fund established by § 46-31.1-3 ; and (6) Other activities consistent with the powers and duties assigned to the department in § 23 42-17.1-2(34). (b) Upon receipt of funding, the department shall establish procedures and rules for the distribution of lake management grants consistent with the following provisions: (1) Entities eligible to apply for assistance shall include lake associations, watershed associations, municipal governments and other nonprofit, non-governmental environmental and conservation organizations. (2) Projects involving lakes and ponds located wholly within a privately owned property and that lack public access to the waterbody are not eligible for assistance. (3) Projects involving lakes and ponds that lack public access, excepting those excluded in subsection (b)(2) of this section, may be eligible to apply for financial assistance provided the department determines that active management is necessary to protect publicly accessible freshwater resources. (4) Projects shall be solicited through a publicly advertised process. (5) Projects shall require a matching contribution of funds. (6) Eligible projects are determined by the department to be technically sound and appropriate to control or mitigate an existing aquatic invasive species management, water quality or aquatic habitat concern. (7) Funding is used to design and implement specific lake management actions. SECTION 24. This article shall take effect upon passage, except section 1, which, upon approval of the voters, shall be effective on January 1, 2027; and section 3, which shall take effect on July 1, 2026. ARTICLE 4 RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS SECTION 1. This article shall serve as the joint resolutions of approval required pursuant to Rhode Island Law § 35-18-1, et seq. for the financing and/or the guarantee of the below described projects. SECTION 2. Rhode Island College – Residential Life Renovations – Auxiliary Enterprise WHEREAS, the Council on Postsecondary Education and Rhode Island College (“College”) are proposing a project which involves the renovation of five (5) residence halls on the College campus; and WHEREAS, the College is committed to providing adequate and suitable housing for its students that will attract undergraduate resident students to the College; and WHEREAS, the renovations will address improvements to critical infrastructure for continued occupancy of the five (5) residency halls, and the aesthetic improvements to be made will enhance the on-campus experience for the resident students; and WHEREAS, the College engaged a qualified architectural firm, which completed an analysis on the condition of these residence halls. WHEREAS, the project consists of the renovation and replacement of building envelopes, elevators, mechanical systems, fire alarms, sprinklers, and other improvements needed to improve the residential sector of the campus, which project is included in the College Capital Improvement Plan; and WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island and other public agencies of certain obligations including financing guarantees or other agreements; and WHEREAS, the costs associated with this auxiliary enterprise project will be financed through Rhode Island Health and Education Building Corporation (RIHEBC) revenue bonds, with an expected term of twenty (20) years; and WHEREAS, the total project cost associated with the completion of this project and proposed financing method is twenty million six hundred thousand dollars ($20,600,000), including capitalized interest, if any, and associated costs of financing. Debt service payments would be supported by revenues derived from the College’s Residential Life auxiliary student fees, and total debt service on the bonds is not expected to exceed one million eight hundred twenty-five thousand dollars ($1,825,000) annually and thirty-six million five hundred thousand dollars ($36,500,000) in the aggregate based on an average interest rate of six percent (6%) and a twenty (20) year term; now, therefore be it RESOLVED, that this General Assembly hereby approves financing in an amount not to exceed totals debt service payments of thirty-six million five hundred thousand dollars ($36,500,000) for the residential life renovations project on the College campus; and be it further RESOLVED, that this joint resolution shall take effect upon passage. SECTION 3. University of Rhode Island – Repaving and Hardscape Improvements WHEREAS, the University of Rhode Island Board of Trustees and the University of Rhode Island (“University”) are proposing a project which involves the re-pavement and reconstruction of major parking facilities, internal roadways and walkways, and associated infrastructure on the University’s Kingston, Narragansett Bay, and W. Alton Jones campuses; and WHEREAS, the project and its proposed funding have been duly reviewed and approved by the University of Rhode Island Board of Trustees as part of the FY 2027–2031 Capital Improvement Plan; and WHEREAS, the University has made progress in the improvement of its extensive inventory of paved surfaces on its campuses, the scope of repaving and reconstruction of major parking facilities, internal roadways and walkways, and associated infrastructure is substantial and ongoing; and WHEREAS, a recent comprehensive campus plan recommends the redevelopment of campus roadways, allowing safe travel for pedestrians, cyclists, vehicles, and other modes of travel; and WHEREAS, the design and execution of this comprehensive plan will improve the campus’s environmental impact; and WHEREAS, these timely project commitments serve the objectives of both the University and the local community; and WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island and other public agencies of certain obligations, including financing guarantees or other agreements; and WHEREAS, the design and paving work will be financed through Rhode Island Health and Education Building Corporation revenue bonds, with an expected term of twenty (20) years in the amount of twenty million dollars ($20,000,000); and WHEREAS, the project cost associated with completion of the project and the proposed financing method is twenty million dollars ($20,000,000), including the cost of issuance. Debt Service payments would be supported by both the University’s unrestricted general revenues and enterprise funding from the University’s parking services operation. Total debt service on the bonds is not expected to exceed one million seven hundred forty-three thousand seven hundred fifty dollars ($1,743,750) annually and thirty-four million eight hundred seventy-five thousand dollars ($34,875,000) in the aggregate based on an average interest rate of six percent (6%); now, therefore, be it RESOLVED, that this General Assembly hereby approves financing in an amount not to exceed total debt service payments of thirty-four million eight hundred seventy-five thousand dollars ($34,875,000) for the repaving and hardscape improvements projects at the University of Rhode Island; and be it further RESOLVED, that this Joint Resolution shall take effect upon passage. SECTION 4. University of Rhode Island – Automotive and Administrative Services WHEREAS, the University of Rhode Island Board of Trustees and the University of Rhode Island (“University”) are proposing a project which provides proper working space for “Automotive and Administrative Mail and Printing Services” in the University’s service sector; and WHEREAS, the University has made progress in the improvement of its service center to align with the improvements made to the academic, research, and student life facilities; and WHEREAS, the project and its proposed funding have been duly reviewed and approved by the University of Rhode Island Board of Trustees as part of the FY 2027–2031 Capital Improvement Plan; and WHEREAS, the design and execution of this project will improve the delivery of the associated services to the campus; and WHEREAS, the individual projects may be delivered in a phased approach; and WHEREAS, these timely project commitments serve the objectives of the University; and WHEREAS, the Rhode Island Public Corporation Debt Management Act requires the General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island and other public agencies of certain obligations, including financing guarantees or other agreements; and WHEREAS, the design and paving work will be financed through Rhode Island Health and Education Building Corporation revenue bonds, with an expected term of twenty (20) years in the amount of fourteen million four hundred thousand dollars ($14,400,000); and WHEREAS, the project cost associated with completion of the project and the proposed financing method is fourteen million four hundred thousand dollars ($14,400,000), including the cost of issuance. Debt Service payments would be supported by the University’s unrestricted general revenues. Total debt service on the bonds is not expected to exceed one million two hundred fifty-seven thousand five hundred dollars ($1,257,500) annually and twenty-five million one hundred fifty thousand dollars ($25,150,000) in the aggregate based on an average interest rate of six percent (6%); now, therefore, be it RESOLVED, that this General Assembly hereby approves financing in an amount not to exceed total debt service payments of twenty-five million one hundred fifty thousand dollars ($25,150,000) for the Automotive and Administrative Services project at the University; and be it further RESOLVED, that this Joint Resolution shall take effect upon passage. SECTION 5. This article shall take effect upon passage. ARTICLE 5 RELATING TO TAXES AND FEES SECTION 1. Title 44 of the General Laws entitled “Taxation” is hereby amended by adding thereto the following chapter: CHAPTER 6.6 Rhode Island Tax Amnesty Act of 2026 44-6.6-1. Short title. This chapter shall be known as the “Rhode Island Tax Amnesty Act of 2026.” 44-6.6-2. Definitions. As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning: (1) "Taxable period" means any period for which a tax return is required by law to be filed with the tax administrator. (2) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by the tax administrator. 44-6.6-3. Establishment of tax amnesty. (a) The tax administrator shall establish a tax amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and collected by the tax administrator. Amnesty tax return forms shall be developed by the tax administrator and shall provide that the taxpayer clearly specify the tax due and the taxable period for which amnesty is being sought by the taxpayer. (b) The amnesty program shall be conducted for a seventy-five (75) day period ending on 24 February 15, 2027. The amnesty program shall provide that, upon written application by a taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode Island for any taxable period ending on or before to December 31, 2025, the tax administrator shall not seek to collect any penalties that may be applicable and shall not seek the civil or criminal prosecution of any taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period who have paid the tax and interest due upon filing the amnesty tax return, or who have entered into an installment payment agreement for reasons of financial hardship and upon terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any installment due under the agreement, such an agreement shall cease to be effective and the balance of the amounts required to be paid thereunder shall be due immediately. Amnesty shall be granted for only the taxable period specified in the application and only if all amnesty conditions are satisfied by the taxpayer. (c) The provisions of this section shall include a taxable period for which a bill or notice of deficiency determination has been sent to the taxpayer. (d) Amnesty shall not be granted to taxpayers who are under any criminal investigation or are a party to any civil or criminal proceeding pending in any court for fraud in relation to any state tax imposed by the law of the state and collected by the tax administrator. 44-6.6-4. Interest under tax amnesty. Notwithstanding any provision of law to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate imposed under § 44-1-7, reduced by twenty-five percent (25%). 44-6.6-5. Implementation. Notwithstanding any provision of law to the contrary, the tax administrator may do all things necessary in order to provide for the timely implementation of this chapter, including, but not limited to, procurement of printing and other services and expenditure of appropriated funds. 44-6.6-6. Disposition of monies. All monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted for separately and paid into the general fund. 44-6.6-7. Analysis of amnesty program by tax administrator. The tax administrator shall provide an analysis of the amnesty program to be posted on its website by April 30, 2027. The analysis shall include revenues received by tax source, distinguishing between the tax collected and interest collected for each source. In addition, the analysis shall further identify the amounts that are new revenues from those already included in the general revenue receivable taxes, defined under generally accepted accounting principles and the state s audited financial statements. 44-6.6-8. Rules and regulations . The tax administrator may promulgate such rules and regulations as are necessary to implement the provisions of this chapter. SECTION 2. Sections 44-11-2.3 and 44-11-11 of the General Laws in Chapter 44-11 entitled “Business Corporation Tax” are hereby amended to read as follows: 44-11-2.3. Pass-through entities — Election to pay state income tax at the entity level. (a) Definitions. As used in this section: (1) “Election” means the annual election to be made by the pass-through entity by filing the prescribed tax form and remitting the appropriate tax. (2) “Net income” means the net ordinary income, net rental real estate income, other net rental income, guaranteed payments, and other business income less specially allocated depreciation and deductions allowed pursuant to § 179 of the United States Revenue Code (26 U.S.C. § 179), all of which would be reported on federal tax form schedules C and E. Net income for purposes of this section does not include specially allocated investment income or any other types of deductions. (3) “Owner” means an individual who is a shareholder of an S Corporation; a partner in a general partnership, a limited partnership, or a limited liability partnership; a member of a limited liability company, a beneficiary of a trust; or a sole proprietor. (4) “Pass-through entity” means a corporation that for the applicable tax year is treated as an S Corporation under I.R.C. 1362(a) (26 U.S.C. § 1362(a)), or a general partnership, limited partnership, limited liability partnership, trust, limited liability company or unincorporated sole proprietorship that for the applicable tax year is not taxed as a corporation for federal tax purposes under the state’s regulations. (5) “State tax credit” means the amount of tax paid by the pass-through entity at the entity level that is passed through to an owner on a pro rata basis. For tax years beginning on or after 17 January 1, 2025, “state tax credit” means ninety percent (90%) of the amount of tax paid by the pass-through entity at the entity level that is passed through to an owner on a pro rata basis. (b) Elections. (1) For tax years beginning on or after January 1, 2019, until the tax year beginning January 1, 2027 a pass-through entity may elect to pay the state tax at the entity level at the rate of five and ninety-nine hundredths percent (5.99%). (2) For tax years beginning on or after January 1, 2027, a pass-through entity may elect to pay the state tax at the entity level at the rate of eight and ninety-nine hundredths percent (8.99%). (2) (3) If a pass-through entity elects to pay an entity tax under this subsection, the entity shall not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident owners. In that instance, the entity shall not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident owners. (c) Reporting. (1) The pass-through entity shall report the pro rata share of the state income taxes paid by the entity which sums will be allowed as a state tax credit for an owner on his or her personal income tax return. (2) The pass-through entity shall also report the pro rata share of the state income taxes paid by the entity as an income (addition) modification to be reported by an owner on his or her personal income tax returns (d) State tax credit shall be the amount of tax paid by the pass-through entity, at the entity level, which is passed through to the owners, on a pro rata basis. For tax years beginning on or after 4 January 1, 2025, the state tax credit shall be ninety percent (90%) of the amount of tax paid by the pass-through entity, at the entity level, which is passed through to the owners, on a pro rata basis. (e) A similar type of tax imposed by another state on the owners’ income paid at the state entity level shall be deemed to be allowed as a credit for taxes paid to another jurisdiction in accordance with the provisions of § 44-30-18. (f) “ Combined reporting” as set forth in § 44-11-4.1 shall not apply to reporting under this section. 44-11-11. “Net income” defined. (a) (1) “Net income” means, for any taxable year and for any corporate taxpayer, the taxable income of the taxpayer for that taxable year under the laws of the United States, with the additions and deductions specified in this section . plus: (b) Additions increasing taxable income. There shall be added to taxable income: (i) (1) Any interest not included in the taxable income; (ii) (2) Any specific exemptions; (iii) (3) The tax imposed by this chapter; (iv) (4) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount of the loan forgiven exceeds $250,000; and minus: (5) For the taxable year beginning on or before January 1, 2025, the amount of any income, deduction, or allowance that would be subject to federal income tax but for the Congressional enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment. The enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment and any Internal Revenue Service changes to forms, regulations, and/or processing which go into effect during the current tax year or within six (6) months of the beginning of the next tax year shall be deemed grounds for the promulgation of emergency rules and regulations under § 42-35-2.10 to effectuate the purpose of preserving the Rhode Island tax base under Rhode Island law with respect to the One Big Beautiful Bill Act or any other similar Congressional enactment; and (6) For any taxable year beginning on or after January 1, 2026, the amount of the deduction taken for domestic research and experimental expenditures under 26 U.S.C. § 174A less the amount of the deduction that would have been allowed as a deduction for domestic research and experimental expenditures under 26 U.S.C. § 174 immediately prior to the enactment of H.R.1 (Pub. L. 119–21). (c) Deductions reducing taxable income. There shall be subtracted from taxable income: (v) (1) Interest on obligations of the United States or its possessions, and other interest exempt from taxation by this state; (vi) (2) The federal net operating loss deduction; (vii) (3) For any taxable year beginning on or after January 1, 2025, in the case of a taxpayer that is licensed in accordance with chapters 28.6 and/or 28.11 of title 21, the amount equal to any expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed under 26 U.S.C. § 280E; and (viii) For the taxable year beginning on or before January 1, 2025, the amount of any income, deduction, or allowance that would be subject to federal income tax but for the Congressional enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment. The enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment and any Internal Revenue Service changes to forms, regulations, and/or processing which go into effect during the current tax year or within six (6) months of the beginning of the next tax year shall be deemed grounds for the promulgation of emergency rules and regulations under § 42-35-2.10 to effectuate the purpose of preserving the Rhode Island tax base under Rhode Island law with respect to the One Big Beautiful Bill Act or any other similar Congressional enactment. (4) For any taxable year beginning on or after January 1, 2026, the amount as determined by the tax administrator required to be added back in a prior year that would have been allowed under 26 U.S.C. § 174A as enacted in H.R.1 (Pub. L. 119–21) on July 4, 2025, but would not have been allowed as a deduction under 26 U.S.C. § 174 immediately prior to its enactment. At no time 26 may the cumulative modification amount for each amortized expenditure exceed one hundred percent (100%) of said expenditure’s expense amount. (2) (d) All binding federal elections made by or on behalf of the taxpayer applicable either directly or indirectly to the determination of taxable income shall be binding on the taxpayer except where this chapter or its attendant regulations specifically modify or provide otherwise. Rhode Island taxable income shall not include the “gross-up of dividends” required by the federal Internal Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the foreign tax credit. (b) (e) A net operating loss deduction shall be allowed, which shall be the same as the net operating loss deduction allowed under 26 U.S.C. § 172, except that: (1) Any net operating loss included in determining the deduction shall be adjusted to reflect the inclusions and exclusions from entire net income required by subsection (a) of this section and § 44-11-11.1; (2) The deduction shall not include any net operating loss sustained during any taxable year in which the taxpayer was not subject to the tax imposed by this chapter; and (3) Limitation on 26 U.S.C. § 172 deduction. (i) The deduction shall not exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the five (5) succeeding taxable years; and (ii) For any taxable year beginning on or after January 1, 2025, the deduction shall not exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided that, the deduction for a taxable year may not be carried back to any other taxable year for Rhode Island purposes, but shall only be allowable on a carry forward basis for the twenty (20) succeeding taxable years. (c) (f) “Domestic international sales corporations” (referred to as DISCs), for the purposes of this chapter, will be treated as they are under federal income tax law and shall not pay the amount of the tax computed under § 44-11-2(a). Any income to shareholders of DISCs is to be treated in the same manner as it is treated under federal income tax law as it exists on December 31, 1984. (d) (g) A corporation that qualifies as a “foreign sales corporation” (FSC) under the provisions of subchapter N, 26 U.S.C. § 861 et seq., and that has in effect for the entire taxable year a valid election under federal law to be treated as a FSC, shall not pay the amount of the tax computed under § 44-11-2(a). Any income to shareholders of FSCs is to be treated in the same manner as it is treated under federal income tax law as it exists on January 1, 1985. (e) (h) For purposes of a corporation’s state tax liability, any deduction to income allowable under 26 U.S.C. § 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer for at least seven years. The division of taxation shall promulgate, in its discretion, rules and regulations relative to the accelerated application of deductions under 26 U.S.C. § 1400Z-2(c). SECTION 3. Effective September 1, 2026, Chapter 44-20 of the General Laws entitled “Cigarette, Other Tobacco Products, and Electronic Nicotine-Delivery System Products” is hereby amended by adding thereto the following section: 44-20-12.8. Floor stock tax on cigarettes and stamps. (a) Each person engaging in the business of selling cigarettes at retail in this state shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2026. In calendar year 2026, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on September 1, 2026, and is computed at the rate of thirty-seven and one-half (37.5) mills for each cigarette on September 1, 2026. (b) Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2026. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by § 44-20-28. In calendar year 2026 the tax is measured by the number of stamps, whether affixed or to be affixed, held by the distributor at 12:01 a.m. on 10 September 1, 2026, and is computed at the rate of thirty-seven and one-half (37.5) mills per cigarette in the package to which the stamps are affixed or to be affixed. (c) Each person subject to the payment of the tax imposed by this section shall, on or before 13 September 15, 2026, file a return, under oath or certified under the penalties of perjury, with the tax administrator on forms furnished by him or her, showing the amount of cigarettes and the number of stamps in that person s possession in this state at 12:01 a.m. on September 1, 2026, as described in this section above, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator. Failure to complete and file the return and pay the tax to the tax administrator shall result in an assessment being issued to the taxpayer as determined by the tax administrator and the taxpayer is not entitled to a hearing with respect to any assessment issued under this subsection. (d) The tax administrator may prescribe rules and regulations, not inconsistent with law, regarding the assessment and collection of the tax imposed by this section. 24 SECTION 4. Effective September 1, 2026, sections 44-20-12, 44-20-13, 44-20-13.2, and 44-20-19 of the General Laws in Chapter 44-20 entitled “Cigarette, Other Tobacco Products, and Electronic Nicotine-Delivery System Products” are hereby amended to read as follows: 44-20-12. Tax imposed on cigarettes sold. A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax to be evidenced by stamps, which may be affixed only by licensed distributors to the packages containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of two hundred twenty-five (225) two hundred sixty-two and one- half (262.5) mills for each cigarette. 44-20-13. Tax imposed on unstamped cigarettes. A tax is imposed at the rate of two hundred twenty-five (225) two hundred sixty-two and one-half (262.5) mills for each cigarette upon the storage or use within this state of any cigarettes not stamped in accordance with the provisions of this chapter in the possession of any consumer within this state. 44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, pipe tobacco products, and electronic nicotine-delivery products. (a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, pipe tobacco products, and electronic nicotine-delivery system products sold, or held for sale in the state by any person, the payment of the tax to be accomplished according to a mechanism established by the administrator, division of taxation, department of revenue. The tax imposed by this section shall be as follows: (1) For all other tobacco products, smokeless tobacco, cigars, and pipe tobacco products, at the rate of eighty percent (80%) of the wholesale cost of other tobacco products, cigars, pipe tobacco products, and smokeless tobacco other than snuff. (2) Notwithstanding the eighty percent (80%) rate in subsection (a)(1) of this section, in the case of cigars, the tax shall not exceed fifty cents ($.50) for each cigar. Effective September 1, 2026, notwithstanding the eighty percent (80%) rate in subsection (a)(1) of this section, in the case of cigars, the tax shall not exceed two dollars ($2.00) for each cigar. (3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net weight as listed by the manufacturer; provided, however, that any product listed by the manufacturer as having a net weight of less than 1.2 ounces shall be taxed as if the product has a net weight of 1.2 ounces. (4) Effective January 1, 2025: (i) For electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not refillable, at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein; and (ii) For any other electronic nicotine-delivery system products, at the rate of ten percent (10%) of the wholesale cost of such products, whether or not sold at wholesale, and if not sold, then at the same rate upon the use by the wholesaler. (iii) Existing Inventory Floor Tax. For all electronic nicotine-delivery system products held by licensed electronic nicotine-delivery system products retailers as of January 1, 2025: Each person engaging in the business of selling electronic nicotine-delivery system products at retail in this state shall pay a tax measured by the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not refillable and the wholesale cost of all other electronic nicotine-delivery system products held by the person in this state at 12:01 a.m. on January 1, 2025, and is computed for electronic nicotine- delivery system products that are prefilled, sealed by the manufacturer, and not refillable, at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein and for any other electronic nicotine-delivery system products at the rate of ten percent (10%) of the wholesale cost of such products on January 1, 2025. Each person subject to the payment of the tax imposed by this section shall, on or before January 16, 2025, file a return, under oath or certified under the penalties of perjury, with the administrator on forms furnished by the administrator, showing the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery system products which are prefilled, sealed by the manufacturer, and not refillable and the wholesale cost of all other electronic nicotine-delivery system products in that person’s possession in this state at 12:01 a.m. on January 1, 2025, as described in this section, and the amount of tax due, and shall at the time of filing the return pay the tax to the administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the administrator. (iv) For all electronic nicotine-delivery system products sold by licensed electronic nicotine-delivery system products distributors, manufacturers, and/or importers in Rhode Island as of January 1, 2025: Any person engaging in the business of distributing at wholesale electronic nicotine-delivery system products in this state shall pay a tax measured by the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not refillable computed at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein and for all other electronic nicotine-delivery system products at the rate of ten percent (10%) of the wholesale cost of such products. (b)(1) Prior to January 1, 2025, any dealer having in the dealer’s possession any other tobacco products with respect to the storage or use of which a tax is imposed by this section shall, within five (5) days after coming into possession of the other tobacco products in this state, file a return with the tax administrator in a form prescribed by the tax administrator. The return shall be accompanied by a payment of the amount of the tax shown on the form to be due. Records required under this section shall be preserved on the premises described in the relevant license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the administrator. (2) Effective January 1, 2025, all other tobacco products, except for cigars, and electronic nicotine-delivery system products sold at wholesale in Rhode Island must be sold by a Rhode Island licensed distributor, manufacturer, or importer, and purchases of other tobacco products, except for cigars, and/or electronic nicotine-delivery system products, from an unlicensed distributor, manufacturer, or importer are prohibited. Any other tobacco products, except for cigars, and/or electronic nicotine-delivery system products purchased and/or obtained from an unlicensed person shall be subject to the terms of this chapter including, but not limited to, § 44-20-15 and shall be taxed pursuant to this section. (3) Effective January 1, 2025, any dealer having in the dealer’s possession any cigars with respect to the storage or use of which a tax is imposed by this section shall, within five (5) days after coming into possession of cigars in this state, file a return with the tax administrator in a form prescribed by the tax administrator. The return shall be accompanied by a payment of the amount of the tax shown on the form to be due. Records required under this section shall be preserved on the premises described in the relevant license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the administrator. (c) Existing Inventory Floor Tax. (1) For all nicotine products defined in § 44-20-1 as other tobacco products but not previously taxed as other tobacco products held by licensed retailers as of October 1, 2025: Each person engaging in the business of selling nicotine products at retail in this state shall pay a tax at the rate of eighty percent (80%) of the wholesale cost of such products on October 1, 2025. Each person subject to the payment of the tax imposed by this section shall, on or before October 16, 2025, file a return, under oath or certified under the penalties of perjury, with the administrator on forms furnished by the administrator, showing the wholesale cost of all nicotine products not previously taxed as other tobacco products in that person s possession in this state at 12:01 a.m. on 24 October 1, 2025, as described in this section, and the amount of tax due, and shall at the time of filing the return pay the tax to the administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the administrator. (2) For all nicotine products defined in § 44-20-1 as other tobacco products but not previously taxed as other tobacco products held by licensed distributors, manufacturers, and/or importers in Rhode Island as of October 1, 2025: Each person engaging in the business of distributing at wholesale nicotine products defined in § 44-20-1 as other tobacco products but not previously taxed as other tobacco products in this state shall pay a tax at the rate of eighty percent (80%) of the wholesale cost of such products on October 1, 2025. Each person subject to the payment of the tax imposed by this section shall, on or before October 16, 2025, file a return, under oath or certified under the penalties of perjury, with the administrator on forms furnished by the administrator, showing the wholesale cost of all nicotine products not previously taxed as other tobacco products in that person s possession in this state at 12:01 a.m. on October 1, 2025, as described in this section, and the amount of tax due, and shall at the time of filing the return pay the tax to the administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the administrator. (d) The proceeds collected are paid into the general fund. 44-20-19. Sales of stamps to distributors. (a) For purchases prior to September 1, 2026, T t he tax administrator shall sell stamps only to licensed distributors at a discount. The distributor remits to the division of taxation ninety-eight and three-fourths percent (98.75%) of the face value of the stamps thereby receiving a discount of one and one-quarter percent (1.25%) of the face value of the stamps. The ninety-eight and three- fourths percent (98.75%) remitted to the tax administrator is paid over to the general revenue. For purchases on or after September 1, 2026, the tax administrator shall sell stamps only to a licensed distributor and shall not sell stamps at a discount. The one hundred percent (100%) remitted to the tax administrator is paid over to the general revenue. (b) The tax administrator may, in his or her discretion, permit a licensed distributor to pay for the stamps within thirty (30) days after the date of purchase; provided, that a bond satisfactory to the tax administrator in an amount not less than the sale price of the stamps has been filed with the tax administrator conditioned upon payment for the stamps. The tax administrator shall keep accurate records of all stamps sold to each distributor. SECTION 5. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby amended by adding thereto the following section: 44-30-104. Child Tax Credit. (a) Definitions. As used in this section: (1) “Child” means an individual who is eighteen years of age or under as of December 31 of the tax year. (2) “Eligible taxpayer” means any natural person domiciled in this state who filed a Rhode Island state personal income tax return for the tax year. (b) Child Tax Credit. For tax years beginning on or after January 1, 2027, a tax credit on the resident tax return of the eligible taxpayer in the amount of three hundred twenty dollars ($320) shall be allowed for each claimed child where the exemption amount is zero in §44-30- 2.6(c)(3)(C)(II)(2). (c) In the case of any eligible taxpayer whose adjusted gross income, as modified pursuant to § 44-30-12, for the taxable year exceeds two hundred sixty-one thousand dollars ($261,000), the credit amount shall be reduced by the applicable percentage. The term “applicable percentage” means twenty (20) percentage points for each seven thousand four hundred fifty dollars ($7,450) (or fraction thereof) by which the eligible taxpayer’s adjusted gross income for the taxable year exceeds two hundred sixty-one thousand dollars ($261,000). (d) Adjustment for inflation. The dollar amount contained in subsections (b) and (c) of this section shall be increased annually by an amount equal to: (I) Such dollar amount contained in subsections (b) and (c) of this section adjusted for inflation using a base tax year of 2026, multiplied by; (II) The cost-of-living adjustment with a base year of 2026. (III) For the purposes of this section, the cost-of-living adjustment for any calendar year is the percentage (if any) by which the consumer price index for the preceding calendar year exceeds the consumer price index for the base year. The consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve-month (12) period ending on 14 August 31, of such calendar year. (IV) For the purpose of this section the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For the purpose of this section the revision of the consumer price index that is most consistent with the consumer price index for calendar year 1986 shall be used. (V) If any increase determined under this section is not a multiple of five dollars ($5.00), such increase shall be rounded to the next lower multiple of five dollars ($5.00). SECTION 6. Sections 44-30-2.6 and 44-30-12 of the General Laws in Chapter 44-30 entitled “Personal Income Tax” are hereby amended to read as follows: 44-30-2.6. Rhode Island taxable income — Rate of tax . (a) “Rhode Island taxable income” means federal taxable income as determined under the Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard- deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and as modified by the modifications in § 44-30-12. (b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter of the federal income tax rates, including capital gains rates and any other special rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or her personal income tax liability. (c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by multiplying the federal tentative minimum tax without allowing for the increased exemptions under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s Rhode Island alternative minimum tax. (1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by the tax administrator in the manner prescribed for adjustment by the commissioner of Internal Revenue in 26 U.S.C. § 1(f). (2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode Island taxable income shall be determined by deducting from federal adjusted gross income as defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island itemized-deduction amount and the Rhode Island exemption amount as determined in this section. (A) Tax imposed. (1) There is hereby imposed on the taxable income of married individuals filing joint returns and surviving spouses a tax determined in accordance with the following table: If taxable income is: The tax is: Not over $53,150 3.75% of taxable income Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150 Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500 Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850 Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700 (2) There is hereby imposed on the taxable income of every head of household a tax determined in accordance with the following table: 1 If taxable income is: The tax is: 2 Not over $42,650 3.75% of taxable income 3 Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650 4 Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100 5 Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350 6 Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700 (3) There is hereby imposed on the taxable income of unmarried individuals (other than surviving spouses and heads of households) a tax determined in accordance with the following 9 table: 10 If taxable income is: The tax is: 11 Not over $31,850 3.75% of taxable income 12 Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850 13 Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100 14 Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850 15 Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700 (4) There is hereby imposed on the taxable income of married individuals filing separate returns and bankruptcy estates a tax determined in accordance with the following table: 18 If taxable income is: The tax is: 19 Not over $26,575 3.75% of taxable income 20 Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 21 Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250 22 Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925 23 Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850 (5) There is hereby imposed a taxable income of an estate or trust a tax determined in accordance with the following table: If taxable income is: The tax is: Not over $2,150 3.75% of taxable income Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 Over $10,450 $737.50 plus 9.90% of the excess over $10,450 (6) Adjustments for inflation. The dollars amount contained in paragraph (A) shall be increased by an amount equal to: (a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by; (b) The cost-of-living adjustment determined under section (J) with a base year of 1993; (c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall be determined under section (J) by substituting “1994” for “1993.” (B) Maximum capital gains rates. (1) In general. If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax imposed by this section for such taxable year shall not exceed the sum of: (a) 2.5% of the net capital gain as reported for federal income tax purposes under section 10 26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 11 (b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 12 § 1(h)(1)(c). 13 (c) 6.25% of the net capital gain as reported for federal income tax purposes under 26 14 U.S.C. § 1(h)(1)(d). 15 (d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 16 § 1(h)(1)(e). (2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital gain shall be determined under subdivision 44-30-2.6(c)(2)(A). (C) Itemized deductions. (1) In general. For the purposes of section (2), “itemized deductions” means the amount of federal itemized deductions as modified by the modifications in § 44-30-12. (2) Individuals who do not itemize their deductions. In the case of an individual who does not elect to itemize his deductions for the taxable year, they may elect to take a standard deduction. (3) Basic standard deduction. The Rhode Island standard deduction shall be allowed in accordance with the following table: Filing status Amount Single $5,350 Married filing jointly or qualifying widow(er) $8,900 Married filing separately $4,450 Head of Household $7,850 (4) Additional standard deduction for the aged and blind. An additional standard deduction shall be allowed for individuals age sixty-five (65) or older or blind in the amount of $1,300 for individuals who are not married and $1,050 for individuals who are married. (5) Limitation on basic standard deduction in the case of certain dependents. In the case of an individual to whom a deduction under section (E) is allowable to another taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of: 7 (a) $850; (b) The sum of $300 and such individual’s earned income; (6) Certain individuals not eligible for standard deduction. In the case of: (a) A married individual filing a separate return where either spouse itemizes deductions; (b) Nonresident alien individual; (c) An estate or trust; The standard deduction shall be zero. (7) Adjustments for inflation. Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount equal to: (a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied by (b) The cost-of-living adjustment determined under section (J) with a base year of 1988. (D) Overall limitation on itemized deductions. (1) General rule. In the case of an individual whose adjusted gross income as modified by § 44-30-12 exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by the lesser of: (a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12 over the applicable amount; or (b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for such taxable year. (2) Applicable amount. (a) In general. For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the case of a separate return by a married individual) (b) Adjustments for inflation. Each dollar amount contained in paragraph (a) shall be increased by an amount equal to: (i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. (3) Phase-out of Limitation. (a) In general. In the case of taxable year beginning after December 31, 2005, and before January 1, 2010, the reduction under section (1) shall be equal to the applicable fraction of the amount which would be the amount of such reduction. (b) Applicable fraction. For purposes of paragraph (a), the applicable fraction shall be determined in accordance with the following table: For taxable years beginning in calendar year The applicable fraction is 2006 and 2007 2/3 2008 and 2009 1/3 (E) Exemption amount. (1) In general. Except as otherwise provided in this subsection, the term “exemption amount” means 18 $3,400. (2) Exemption amount disallowed in case of certain dependents. In the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for the same taxable year, the exemption amount applicable to such individual for such individual s taxable year shall be zero. (3) Adjustments for inflation. The dollar amount contained in paragraph (1) shall be increased by an amount equal to: (a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by (b) The cost-of-living adjustment determined under section (J) with a base year of 1989. (4) Limitation. (a) In general. In the case of any taxpayer whose adjusted gross income as modified for the taxable year exceeds the threshold amount shall be reduced by the applicable percentage. (b) Applicable percentage. In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the threshold amount, the exemption amount shall be reduced by two (2) percentage points for each $2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds the threshold amount. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting “$1,250” for “$2,500.” In no event shall the applicable percentage exceed one hundred percent (100%). (c) Threshold Amount. For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with the following table: Filing status Amount Single $156,400 Married filing jointly of qualifying widow(er) $234,600 Married filing separately $117,300 Head of Household $195,500 (d) Adjustments for inflation. Each dollar amount contained in paragraph (b) shall be increased by an amount equal to: (i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. (5) Phase-out of limitation. (a) In general. In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which would be the amount of such reduction. (b) Applicable fraction. For the purposes of paragraph (a), the applicable fraction shall be determined in accordance with the following table: For taxable years beginning in calendar year The applicable fraction is 2006 and 2007 2/3 2008 and 2009 1/3 (F) Alternative minimum tax. (1) General rule. There is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the excess (if any) of: (a) The tentative minimum tax for the taxable year, over (b) The regular tax for the taxable year. (2) The tentative minimum tax for the taxable year is the sum of: (a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus (b) 7.0 percent of so much of the taxable excess above $175,000. (3) The amount determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year. (4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so much of the federal alternative minimum taxable income as modified by the modifications in § 44- 30-12 as exceeds the exemption amount. (5) In the case of a married individual filing a separate return, subparagraph (2) shall be applied by substituting “$87,500” for $175,000 each place it appears. (6) Exemption amount. For purposes of this section “exemption amount” means: Filing status Amount Single $39,150 Married filing jointly or qualifying widow(er) $53,700 Married filing separately $26,850 Head of Household $39,150 Estate or trust $24,650 (7) Treatment of unearned income of minor children (a) In general. In the case of a minor child, the exemption amount for purposes of section (6) shall not exceed the sum of: (i) Such child s earned income, plus (ii) $6,000. (8) Adjustments for inflation. The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount equal to: (a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by (b) The cost-of-living adjustment determined under section (J) with a base year of 2004. (9) Phase-out. (a) In general. The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income of the taxpayer exceeds the threshold amount. (b) Threshold amount. For purposes of this paragraph, the term “threshold amount” shall be determined with the following table: Filing status Amount Single $123,250 Married filing jointly or qualifying widow(er) $164,350 Married filing separately $82,175 Head of Household $123,250 Estate or Trust $82,150 (c) Adjustments for inflation Each dollar amount contained in paragraph (9) shall be increased by an amount equal to: (i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by (ii) The cost-of-living adjustment determined under section (J) with a base year of 2004. (G) Other Rhode Island taxes. (1) General rule. There is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to twenty-five percent (25%) of: (a) The Federal income tax on lump-sum distributions. (b) The Federal income tax on parents election to report child s interest and dividends. (c) The recapture of Federal tax credits that were previously claimed on Rhode Island return. (H) Tax for children under 18 with investment income. (1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of: (a) The Federal tax for children under the age of 18 with investment income. (I) Averaging of farm income. (1) General rule. At the election of an individual engaged in a farming business or fishing business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of: (a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. § 25 1301]. (J) Cost-of-living adjustment. (1) In general. The cost-of-living adjustment for any calendar year is the percentage (if any) by which: (a) The CPI for the preceding calendar year exceeds (b) The CPI for the base year. (2) CPI for any calendar year. For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer price index as of the close of the twelve (12) month period ending on August 31 of such calendar year. (3) Consumer price index. For purposes of paragraph (2), the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For purposes of the preceding sentence, the revision of the consumer price index that is most consistent with the consumer price index for calendar year 1986 shall be used. (4) Rounding. (a) In general. If any increase determined under paragraph (1) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. (b) In the case of a married individual filing a separate return, subparagraph (a) shall be applied by substituting “$25” for $50 each place it appears. (K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to a credit against the Rhode Island tax imposed under this section: 15 (1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.] (2) Child and dependent care credit; (3) General business credits; (4) Credit for elderly or the disabled; (5) Credit for prior year minimum tax; (6) Mortgage interest credit; (7) Empowerment zone employment credit; (8) Qualified electric vehicle credit. (L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island tax imposed under this section if the adopted child was under the care, custody, or supervision of the Rhode Island department of children, youth and families prior to the adoption. (M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits provided there shall be no deduction based on any federal credits enacted after January 1, 1996, including the rate reduction credit provided by the federal Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax purposes shall determine the Rhode Island amount to be recaptured in the same manner as prescribed in this subsection. (N) Rhode Island earned-income credit. (1) In general. For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned- income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent (25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax. For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax. For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned- income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax. For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned- income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax. For tax years beginning on or after January 1, 2024, a taxpayer entitled to a federal earned- income credit shall be allowed a Rhode Island earned-income credit equal to sixteen percent (16%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax. (2) Refundable portion. In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall be allowed as follows. (i) For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-income credit exceeds the Rhode Island income tax. (ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2) refundable earned-income credit means one hundred percent (100%) of the amount by which the Rhode Island earned-income credit exceeds the Rhode Island income tax. (O) The tax administrator shall recalculate and submit necessary revisions to paragraphs (A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years thereafter for inclusion in the statute. (3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode Island taxable income” means federal adjusted gross income as determined under the Internal Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44- 30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph 44-30-2.6(c)(3)(C). (A) Tax imposed. (I) There is hereby imposed on the taxable income of married individuals filing joint returns, qualifying widow(er), every head of household, unmarried individuals, married individuals filing separate returns and bankruptcy estates, a tax determined in accordance with the following table s : (1) For tax years beginning before January 1, 2027: RI Taxable Income RI Income Tax Over But not over Pay + % on Excess on the amount over $ 0 - $ 55,000 $ 0 + 3.75% $ 0 55,000 - 125,000 2,063 + 4.75% 55,000 125,000 - 5,388 + 5.99% 125,000 (2) For tax years beginning on or after January 1, 2027: RI Taxable Income RI Income Tax Over But not over Pay + % on Excess on the amount over $ 0 - $ 55,000 $ 0 + 3.75% $ 0 55,000 - 125,000 2,063 + 4.75% 55,000 125,000 - 648,398 5,388 + 5.99% 125,000 648,398 36,740 + 8.99% 648,398 (II) There is hereby imposed on the taxable income of an estate or trust a tax determined in accordance with the following table s : (1) For tax years beginning before January 1, 2027: RI Taxable Income RI Income Tax Over But not over Pay +% on Excess on the amount over $0 - $ 2,230 $0 + 3.75% $ 0 2,230 - 7,022 84 + 4.75% 2,230 7,022 - 312 + 5.99% 7,022 (2) For tax years beginning on or after January 1, 2027: RI Taxable Income RI Income Tax Over But not over Pay + % on Excess on the amount over $ 0 $ 2,230 $ 0 + 3.75% $ 0 2,230 - 7,022 84 + 4.75% 2,230 7,022 - 36,427 312 + 5.99% 7,022 36,427 - 2,073 + 8.99% 36,427 (B) Deductions: (I) Rhode Island Basic Standard Deduction. Only the Rhode Island standard deduction shall be allowed in accordance with the following table: Filing status Amount Single $7,500 Married filing jointly or qualifying widow(er) $15,000 Married filing separately $7,500 Head of Household $11,250 (II) Nonresident alien individuals, estates and trusts are not eligible for standard deductions. (III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage. The term “applicable percentage” means twenty (20) percentage points for each five thousand dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000). (C) Exemption Amount: (I) The term “exemption amount” means three thousand five hundred dollars ($3,500) multiplied by the number of exemptions allowed for the taxable year for federal income tax purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same as it does in 26 U.S.C. § 151 and 26 U.S.C. § 152 just prior to the enactment of the Tax Cuts and Jobs Act (Pub. L. No. 115-97) on December 22, 2017. (II) Disallowance of Exemptions (1) Exemption amount disallowed in case of certain dependents. In the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for the same taxable year, the exemption amount applicable to such individual for such individual’s taxable year shall be zero. (2) Exemption amount disallowed for Child Tax Credit. For tax years beginning on or after 1 January 1, 2027, the exemption amount applicable to a claimed child dependent of an eligible taxpayer, as defined in § 44-30-104, on a resident tax return shall be zero and a credit as defined in § 44-30-104 for each claimed child dependent shall be granted. (III) Identifying information required. (1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be allowed under this section with respect to any individual unless the Taxpayer Identification Number of such individual is included on the federal return claiming the exemption for the same tax filing period. (2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event that the Taxpayer Identification Number for each individual is not required to be included on the federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer Identification Number must be provided on the Rhode Island tax return for the purpose of claiming said exemption(s). (D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term “applicable percentage” means twenty (20) percentage points for each five thousand dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000). (E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30- 2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount equal to: (I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by; (II) The cost-of-living adjustment with a base year of 2000. (III) For the purposes of this section, the cost-of-living adjustment for any calendar year is the percentage (if any) by which the consumer price index for the preceding calendar year exceeds the consumer price index for the base year. The consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve-month (12) period ending on 30 August 31, of such calendar year. (IV) For the purpose of this section the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For the purpose of this section the revision of the consumer price index that is most consistent with the consumer price index for calendar year 1986 shall be used. (V) If any increase determined under this section is not a multiple of fifty dollars ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a married individual filing separate return, if any increase determined under this section is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple of twenty-five dollars ($25.00). (F) Credits against tax. (I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be as follows: (a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit pursuant to subparagraph 44-30-2.6(c)(2)(N). (b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided 13 in § 44-33-1 et seq. (c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax credit as provided in § 44-30.3-1 et seq. (d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to other states pursuant to § 44-30-74. (e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit as provided in § 44-33.2-1 et seq. (f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture production tax credit as provided in § 44-31.2-1 et seq. (g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of the federal child and dependent care credit allowable for the taxable year for federal purposes; provided, however, such credit shall not exceed the Rhode Island tax liability. (h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for contributions to scholarship organizations as provided in chapter 62 of title 44. (i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable as if no withholding were required, but any amount of Rhode Island personal income tax actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax administrator on behalf of the person from whom withheld, and the person shall be credited with having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable year of less than twelve (12) months, the credit shall be made under regulations of the tax administrator. (j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in RI wavemaker fellowship program as provided in § 42-64.26-1 et seq. (k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in 3 § 42-64.20-1 et seq. ( l ) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq. (m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter, unused carryforward for such credit previously issued shall be allowed for the historic homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits under the historic homeownership assistance act. (n) Child Tax Credit: Effective for tax years beginning on or after January 1, 2027, credit shall be allowed for the Child Tax Credit as provided in § 44-30-104. (2) Except as provided in section 1 above, no other state and federal tax credit shall be available to the taxpayers in computing tax liability under this chapter. 44-30-12. Rhode Island income of a resident individual. (a) General. The Rhode Island income of a resident individual means the individual’s adjusted gross income for federal income tax purposes, with the modifications specified in this section. (b) Modifications increasing federal adjusted gross income. There shall be added to federal adjusted gross income: (1) Interest income on obligations of any state, or its political subdivisions, other than Rhode Island or its political subdivisions; (2) Interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the extent exempted by the laws of the United States from federal income tax but not from state income taxes; (3) The modification described in § 44-30-25(g); (4)(i) The amount defined below of a nonqualified withdrawal made from an account in the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified withdrawal is: (A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57- 6.1; and (B) A withdrawal or distribution that is: (I) Not applied on a timely basis to pay “qualified higher education expenses” as defined in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made; (II) Not made for a reason referred to in § 16-57-6.1(e); or (III) Not made in other circumstances for which an exclusion from tax made applicable by Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover, withdrawal, or distribution is made within two (2) taxable years following the taxable year for which a contributions modification pursuant to subsection (c)(4) of this section is taken based on contributions to any tuition savings program account by the person who is the participant of the account at the time of the contribution, whether or not the person is the participant of the account at the time of the transfer, rollover, withdrawal, or distribution; (ii) In the event of a nonqualified withdrawal under subsection (b)(4)(i)(A) or (b)(4)(i)(B) of this section, there shall be added to the federal adjusted gross income of that person for the taxable year of the withdrawal an amount equal to the lesser of: (A) The amount equal to the nonqualified withdrawal reduced by the sum of any administrative fee or penalty imposed under the tuition savings program in connection with the nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the person’s federal adjusted gross income for the taxable year; and (B) The amount of the person’s contribution modification pursuant to subsection (c)(4) of this section for the person’s taxable year of the withdrawal and the two (2) prior taxable years less the amount of any nonqualified withdrawal for the two (2) prior taxable years included in computing the person’s Rhode Island income by application of this subsection for those years. Any amount added to federal adjusted gross income pursuant to this subdivision shall constitute Rhode Island income for residents, nonresidents, and part-year residents; (5) The modification described in § 44-30-25.1(d)(3)(i); (6) The amount equal to any unemployment compensation received but not included in federal adjusted gross income; (7) The amount equal to the deduction allowed for sales tax paid for a purchase of a qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6); (8) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount of the loan forgiven exceeds $250,000, including an individual’s distributive share of the amount of a pass-through entity’s loan forgiveness in excess of $250,000; and (9) For the taxable year beginning on or before January 1, 2025, the amount of any income, deduction or allowance that would be subject to federal income tax but for the Congressional enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment. The enactment of the One Big Beautiful Bill Act or any other similar Congressional enactment and any Internal Revenue Service changes to forms, regulations, and/or processing which go into effect during the current tax year or within six (6) months of the beginning of the next tax year shall be deemed grounds for the promulgation of emergency rules and regulations under § 42-35-2.10 to effectuate the purpose of preserving the Rhode Island tax base under Rhode Island law with respect to the One Big Beautiful Bill Act or any other similar Congressional enactment. (10) For any taxable year beginning on or after January 1, 2026, the amount of the deduction taken for domestic research and experimental expenditures under 26 U.S.C. § 174A less the amount of the deduction that would have been allowed as a deduction for domestic research and experimental expenditures under 26 U.S.C. § 174 immediately prior to the enactment of H.R.1 (Pub. L. 119–21). (c) Modifications reducing federal adjusted gross income. There shall be subtracted from federal adjusted gross income: (1) Any interest income on obligations of the United States and its possessions to the extent includible in gross income for federal income tax purposes, and any interest or dividend income on obligations, or securities of any authority, commission, or instrumentality of the United States to the extent includible in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States; provided, that the amount to be subtracted shall in any case be reduced by any interest on indebtedness incurred or continued to purchase or carry obligations or securities the income of which is exempt from Rhode Island personal income tax, to the extent the interest has been deducted in determining federal adjusted gross income or taxable income; 26 (2) A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1); (3) The amount of any withdrawal or distribution from the “tuition savings program” referred to in § 16-57-6.1 that is included in federal adjusted gross income, other than a withdrawal or distribution or portion of a withdrawal or distribution that is a nonqualified withdrawal; (4) Contributions made to an account under the tuition savings program, including the “contributions carryover” pursuant to subsection (c)(4)(iv) of this section, if any, subject to the following limitations, restrictions, and qualifications: (i) The aggregate subtraction pursuant to this subdivision for any taxable year of the taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint return; (ii) The following shall not be considered contributions: (A) Contributions made by any person to an account who is not a participant of the account at the time the contribution is made; (B) Transfers or rollovers to an account from any other tuition savings program account or from any other “qualified tuition program” under section 529 of the Internal Revenue Code, 26 U.S.C. § 529; or (C) A change of the beneficiary of the account; (iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer’s federal adjusted gross income to less than zero (0); (iv) The contributions carryover to a taxable year for purpose of this subdivision is the excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition savings program for all preceding taxable years for which this subsection is effective over the sum of: (A) The total of the subtractions under this subdivision allowable to the taxpayer for all such preceding taxable years; and (B) That part of any remaining contribution carryover at the end of the taxable year which exceeds the amount of any nonqualified withdrawals during the year and the prior two (2) taxable years not included in the addition provided for in this subdivision for those years. Any such part shall be disregarded in computing the contributions carryover for any subsequent taxable year; (v) For any taxable year for which a contributions carryover is applicable, the taxpayer shall include a computation of the carryover with the taxpayer’s Rhode Island personal income tax return for that year, and if for any taxable year on which the carryover is based the taxpayer filed a joint Rhode Island personal income tax return but filed a return on a basis other than jointly for a subsequent taxable year, the computation shall reflect how the carryover is being allocated between the prior joint filers; (5) The modification described in § 44-30-25.1(d)(1); (6) Amounts deemed taxable income to the taxpayer due to payment or provision of insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36 or other coverage plan; (7) Modification for organ transplantation. (i) An individual may subtract up to ten thousand dollars ($10,000) from federal adjusted gross income if the individual, while living, donates one or more of their human organs to another human being for human organ transplantation, except that for purposes of this subsection, “human organ” means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract modification that is claimed hereunder may be claimed in the taxable year in which the human organ transplantation occurs. (ii) An individual may claim that subtract modification hereunder only once, and the subtract modification may be claimed for only the following unreimbursed expenses that are incurred by the claimant and related to the claimant’s organ donation: (A) Travel expenses. (B) Lodging expenses. (C) Lost wages. (iii) The subtract modification hereunder may not be claimed by a part-time resident or a nonresident of this state; (8) Modification for taxable Social Security income. (i) For tax years beginning on or after January 1, 2016 , until the tax year beginning January 14 1, 2027 : (A) For a person who has attained the age used for calculating full or unreduced Social Security retirement benefits who files a return as an unmarried individual, head of household, or married filing separate whose federal adjusted gross income for the taxable year is less than eighty thousand dollars ($80,000); or (B) A married individual filing jointly or individual filing qualifying widow(er) who has attained the age used for calculating full or unreduced Social Security retirement benefits whose joint federal adjusted gross income for the taxable year is less than one hundred thousand dollars ($100,000), an amount equal to the Social Security benefits includible in federal adjusted gross income. (ii) For the tax years beginning on January 1, 2027, until the tax year beginning January 1, 25 2028: (A) For a person who files a return as an unmarried individual, head of household, or married filing separate whose federal adjusted gross income for the taxable year is less than eighty thousand dollars ($80,000); or (B) A married individual filing jointly or individual filing qualifying widow(er) whose joint federal adjusted gross income for the taxable year is less than one hundred thousand dollars ($100,000), an amount equal to the Social Security benefits includible in federal adjusted gross income. (iii) For tax years beginning on January 1, 2028 until the tax year beginning January 1, 2029: (A) For a person who files a return as an unmarried individual, head of household, or married filing separate whose federal adjusted gross income for the taxable year is less than one hundred sixty-five thousand two hundred dollars ($165,200); or (B) A married individual filing jointly or individual filing qualifying widow(er) whose joint federal adjusted gross income for the taxable year is less than two hundred six thousand five hundred fifty dollars ($206,550), an amount equal to the Social Security benefits includible in federal adjusted gross income. (iv) For tax years beginning on or after January 1, 2029, for a person who files a return as an unmarried individual, head of household, married filing separate, a married individual filing jointly, or individual qualifying widow(er) there is no income threshold for tax years beginning on or after January 1, 2029, an amount equal to the Social Security benefits includible in federal adjusted gross income. (ii) (v) Adjustment for inflation. The dollar amount contained in subsections (c)(8)(i) (A) and (c)(8)(i)(B) and (c)(8)(ii) of this section shall be increased annually by an amount equal to: (A) Such dollar amount contained in subsections (c)(8)(i) (A) and (c)(8)(i)(B) and (c)(8)(ii) of this section adjusted for inflation using a base tax year of 2000, multiplied by; (B) The cost-of-living adjustment with a base year of 2000. (iii) (vi) For the purposes of this section the cost-of-living adjustment for any calendar year is the percentage (if any) by which the consumer price index for the preceding calendar year exceeds the consumer price index for the base year. The consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve-month (12) period ending on August 31, of such calendar year. (iv) (vii) For the purpose of this section the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For the purpose of this section the revision of the consumer price index which is most consistent with the consumer price index for calendar year 1986 shall be used. (v) (viii) If any increase determined under this section is not a multiple of fifty dollars ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a married individual filing separate return, if any increase determined under this section is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple of twenty-five dollars ($25.00); (9) Modification of taxable retirement income from certain pension plans or annuities. (i) For tax years beginning on or after January 1, 2017, until the tax year beginning January 1, 2022, a modification shall be allowed for up to fifteen thousand dollars ($15,000), and for tax years beginning on or after January 1, 2023, until the tax year beginning January 1, 2024, a modification shall be allowed for up to twenty thousand dollars ($20,000), and for tax years beginning on or after January 1, 2025, a modification shall be allowed for up to fifty thousand dollars ($50,000), of taxable pension and/or annuity income that is included in federal adjusted gross income for the taxable year: (A) For a person who has attained the age used for calculating full or unreduced Social Security retirement benefits who files a return as an unmarried individual, head of household, or married filing separate whose federal adjusted gross income for such taxable year is less than the amount used for the modification contained in subsection (c)(8)(i)(A) of this section an amount not to exceed $15,000 for tax years beginning on or after January 1, 2017, until the tax year beginning 11 January 1, 2022, and an amount not to exceed twenty thousand dollars ($20,000) for tax years beginning on or after January 1, 2023, until the tax year beginning January 1, 2024, and an amount not to exceed fifty thousand dollars ($50,000) for tax years beginning on or after January 1, 2025, of taxable pension and/or annuity income includible in federal adjusted gross income; or (B) For a married individual filing jointly or individual filing qualifying widow(er) who has attained the age used for calculating full or unreduced Social Security retirement benefits whose joint federal adjusted gross income for such taxable year is less than the amount used for the modification contained in subsection (c)(8)(i)(B) of this section an amount not to exceed $15,000 for tax years beginning on or after January 1, 2017, until the tax year beginning January 1, 2022, and an amount not to exceed twenty thousand dollars ($20,000) for tax years beginning on or after 21 January 1, 2023, until the tax year beginning January 1, 2024, and an amount not to exceed fifty thousand dollars ($50,000) for tax years beginning on or after January 1, 2025, of taxable pension and/or annuity income includible in federal adjusted gross income. (ii) For tax years beginning on or after January 1, 2025, a modification shall be allowed for up to fifty thousand dollars ($50,000) of taxable pension and/or annuity income that is included in federal adjusted gross income for the taxable year: (A) For a person who has attained the age used for calculating full or unreduced Social Security retirement benefits who files a return as an unmarried individual, head of household, or married filing separate whose federal adjusted gross income for the taxable year is less than one hundred seven thousand dollars ($107,000) an amount not to exceed fifty thousand dollars ($50,000) for tax years beginning on or after January 1, 2025, of taxable pension and/or annuity income includible in federal adjusted gross income; or (B) For a married individual filing jointly or individual filing qualifying widow(er) who has attained the age used for calculating full or unreduced Social Security retirement benefits whose joint federal adjusted gross income for the taxable year is less than one hundred thirty-three thousand seven hundred fifty dollars ($133,750) an amount not to exceed fifty thousand dollars ($50,000) for tax years beginning on or after January 1, 2025, of taxable pension and/or annuity income includible in federal adjusted gross income. (ii) (iii) Adjustment for inflation. (A) The dollar amount contained by reference in subsections (c)(9)(i)(A) and (c)(9)(i)(B) of this section shall be increased annually for tax years beginning on or after January 1, 2018 until the tax year beginning on January 1, 2025 , by an amount equal to: (A) (I) Such dollar amount contained by reference in subsections (c)(9)(i)(A) and (c)(9)(i)(B) of this section adjusted for inflation using a base tax year of 2000, multiplied by; (B) (II) The cost-of-living adjustment with a base year of 2000. (B) For tax years beginning on or after January 1, 2026, the dollar amount contained in subsections (c)(9)(ii)(A) and (c)(9)(ii)(B) of this section shall be increased annually by an amount equal to: (I) Such dollar amount contained by reference in subsections (c)(9)(ii)(A) and (c)(9)(ii)(B) of this section adjusted for inflation using a base tax year of 2025, multiplied by; (II) The cost-of-living adjustment with a base year of 2025. (iii) (iv) For the purposes of this section, the cost-of-living adjustment for any calendar year is the percentage (if any) by which the consumer price index for the preceding calendar year exceeds the consumer price index for the base year. The consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve-month (12) period ending on August 31, of such calendar year. (iv) (v) For the purpose of this section, the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For the purpose of this section, the revision of the consumer price index which is most consistent with the consumer price index for calendar year 1986 shall be used. (v) (vi) If any increase determined under this section is not a multiple of fifty dollars ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a married individual filing a separate return, if any increase determined under this section is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple of twenty-five dollars ($25.00). (vi) (vii) For tax years beginning on or after January 1, 2022, until the tax year beginning January 1, 2025, the dollar amount contained by reference in subsection (c)(9)(i)(A) shall be adjusted to equal the dollar amount contained in subsection (c)(8)(i)(A), as adjusted for inflation, and the dollar amount contained by reference in subsection (c)(9)(i)(B) shall be adjusted to equal the dollar amount contained in subsection (c)(8)(i)(B), as adjusted for inflation; (10) Modification for Rhode Island investment in opportunity zones. For purposes of a taxpayer’s state tax liability, in the case of any investment in a Rhode Island opportunity zone by the taxpayer for at least seven (7) years, a modification to income shall be allowed for the incremental difference between the benefit allowed under 26 U.S.C. § 1400Z-2(b)(2)(B)(iv) and the federal benefit allowed under 26 U.S.C. § 1400Z-2(c); (11) Modification for military service pensions. (i) For purposes of a taxpayer’s state tax liability, a modification to income shall be allowed as follows: (A) For the tax years beginning on January 1, 2023, a taxpayer may subtract from federal adjusted gross income the taxpayer’s military service pension benefits included in federal adjusted gross income; (ii) As used in this subsection, the term “military service” shall have the same meaning as set forth in 20 C.F.R. § 212.2; (iii) At no time shall the modification allowed under this subsection alone or in conjunction with subsection (c)(9) exceed the amount of the military service pension received in the tax year for which the modification is claimed; (12) Any rebate issued to the taxpayer pursuant to § 44-30-103 to the extent included in gross income for federal tax purposes; and (13) For tax years beginning on or after January 1, 2025, in the case of a taxpayer that is licensed in accordance with chapters 28.6 and/or 28.11 of title 21, the amount equal to any expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed under 26 U.S.C. § 280E. (14) For any taxable year beginning on or after January 1, 2026, the amount as determined by the tax administrator required to be added back in a prior year that would have been allowed under 26 U.S.C. § 174A as enacted in H.R.1 (Pub. L. 119–21) on July 4, 2025, but would not have been allowed as a deduction under 26 U.S.C. § 174 immediately prior to its enactment. At no time 29 may the cumulative modification amount for each amortized expenditure exceed one hundred percent (100%) of said expenditure’s expense amount. (d) Modification for Rhode Island fiduciary adjustment. There shall be added to, or subtracted from, federal adjusted gross income (as the case may be) the taxpayer’s share, as beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44- 30-17. (e) Partners. The amounts of modifications required to be made under this section by a partner, which relate to items of income or deduction of a partnership, shall be determined under § 44-30-15. SECTION 7. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled “Motor Vehicle and Trailer Excise Tax Elimination Act of 1998” is hereby amended to read as follows: 44-34.1-2. City, town, and fire district reimbursement. (a) In fiscal years 2024 and thereafter, cities, towns, and fire districts shall receive reimbursements, as set forth in this section, from state general revenues equal to the amount of lost tax revenue due to the phase out of the excise tax. When the tax is phased out, cities, towns, and fire districts shall receive a permanent distribution of sales tax revenue pursuant to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination. (b)(1) In fiscal year 2024, cities, towns, and fire districts shall receive the following reimbursement amounts: Barrington $ 5,894,822 Bristol $ 2,905,818 Burrillville $ 5,053,933 Central Falls $ 2,077,974 Charlestown $ 1,020,877 Coventry $ 5,872,396 Cranston $ 22,312,247 Cumberland $ 6,073,469 East Greenwich $ 2,417,332 East Providence $ 11,433,479 Exeter $ 2,241,381 Foster $ 1,652,251 Glocester $ 2,381,941 Hopkinton $ 1,629,259 Jamestown $ 622,793 Johnston $ 10,382,785 Lincoln $ 5,683,015 Little Compton $ 366,775 Middletown $ 1,976,448 Narragansett $ 1,831,251 Newport $ 2,223,671 1 New Shoreham $ 163,298 2 North Kingstown $ 5,378,818 3 North Providence $ 9,619,286 4 North Smithfield $ 4,398,531 5 Pawtucket $ 16,495,506 6 Portsmouth $ 2,414,242 7 Providence $ 34,131,596 8 Richmond $ 1,448,455 9 Scituate $ 1,977,127 10 Smithfield $ 7,098,694 11 South Kingstown $ 3,930,455 12 Tiverton $ 1,748,175 13 Warren $ 2,090,911 14 Warwick $ 25,246,254 15 Westerly $ 5,765,523 16 West Greenwich $ 1,331,725 17 West Warwick $ 5,673,744 18 Woonsocket $ 9,324,776 19 Lime Rock Fire District $ 133,933 20 Lincoln Fire District $ 208,994 21 Manville Fire District $ 64,862 22 Quinnville Fire District $ 13,483 (2) In fiscal year 2024, funds shall be distributed to the cities, towns, and fire districts as follows: (i) On August 1, 2023, twenty-five percent (25%) of the funds. (ii) On November 1, 2023, twenty-five percent (25%) of the funds. (iii) On February 1, 2024, twenty-five percent (25%) of the funds. (iv) On May 1, 2024, twenty-five percent (25%) of the funds. The funds shall be distributed to each city, town, and fire district in the same proportion as distributed in fiscal year 2023. (3) For the city of East Providence, the payment schedule is twenty-five percent (25%) on November 1, 2023, twenty-five percent (25%) on February 1, 2024, twenty-five percent (25%) on May 1, 2024, and twenty-five percent (25%) on August 1, 2024. (4) On any of the payment dates specified in subsections (b)(2)(i) through (b)(2)(iv), (b)(3), or (d) of this section, the director of revenue is authorized to deduct previously made over-payments or add supplemental payments as may be required to bring the reimbursements into full compliance with the requirements of this chapter. (c) When the tax is phased out to August 1, of the following fiscal year the director of revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to the amount of funds distributed to the cities, towns, and fire districts under this chapter during the fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year following the phase-out received by each city, town, and fire district, calculated to the nearest one- hundredth of one percent (0.01%). The director of the department of revenue 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, towns, and fire districts under this chapter for the second fiscal year following the phase- out and each year thereafter in fiscal year 2025 and fiscal year 2026 . The cities, towns, and fire districts shall receive that amount of sales tax in the proportions calculated by the director of revenue as that received in the fiscal year following the phase-out, subject to a maximum two percentage point increase from the previous fiscal year. For fiscal year 2026 only, the increase shall be based on the amount received pursuant to subsection (b)(1) or subsection (c) of this section whichever is greater. (d) In fiscal years 2025 and thereafter, twenty-five percent (25%) of the funds shall be distributed to the cities, towns, and fire districts on August 1, 2024, and every August 1 thereafter; twenty-five percent (25%) shall be distributed on November 1, 2024, and every November 1 thereafter; twenty-five percent (25%) shall be distributed on February 1, 2025, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on May 1, 2025, and every May 1 thereafter. (e) In fiscal years 2027 and thereafter, each city, town, and fire district shall receive a reimbursement amount equal to the reimbursement amount it received in fiscal year 2026. 30 (e) (f) [Deleted by P.L. 2024, ch. 400, § 1 and P.L. 2024, ch. 401, § 1.] SECTION 8. Section 45-2-35.1 of the General Laws in Chapter 45-2 entitled "City of Newport – Landing and boarding fees" is hereby amended to read as follows: 45-2-35.1. City of Newport — Landing and boarding fees. (a) The city of Newport is authorized to charge, assess, or otherwise collect from every cruise vessel landing in the city of Newport a landing fee of ten dollars ($10.00) fifteen dollars ($15.00) per passenger and from every cruise vessel embarking from Newport, a boarding fee of ten dollars ($10.00) fifteen dollars ($15.00) per passenger. For the purposes of this section, the term “cruise vessel” does not include ferries and water carriers of persons and/or property doing business as common carriers operating upon waters between termini within the state. (b) Of the total fee collected per passenger, ten dollars ($10.00) shall be retained by the city of Newport, and five dollars ($5.00) shall be allocated to the Rhode Island public transit authority as defined in § 39-18-2 to support transit operations in Newport and Aquidneck Island. (b) (c) The city council of the City of Newport shall promulgate rules and regulations to implement the provisions of this section. (c) (d) The city of Newport is authorized to impose a penalty on any delinquency in the payment of any fee imposed under this section, at a rate equal to that assessed by the city on tax delinquencies. SECTION 9. Sections 1, 2, 5, 6, 7, and 8 shall take effect upon passage. Sections 3 and 4 shall take effect September 1, 2026. ARTICLE 6 RELATING TO CAPITAL DEVELOPMENT PROGRAM 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 2026, there shall be submitted to the people (“People”) of the State of Rhode Island (“State”), for their approval or rejection, the following proposition: "Shall the action of the general assembly, by an act passed at the January 2026 session, authorizing the issuance of bonds, refunding bonds, and temporary notes of the State of Rhode Island 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/or temporary notes authorized in accordance with the provisions of said act?" Project (1) Higher Education Facilities $215,000,000 Approval of this question will allow the State to issue general obligation bonds, refunding bonds, and/or temporary notes in an amount not to exceed two hundred and fifteen million dollars ($215,000,000) for capital improvements to higher education facilities, to be allocated as follows: (a) University of Rhode Island Integrated Health Building $105,000,000 Provides one hundred and five million dollars ($105,000,000) for the construction of the new Integrated Health Building on the University of Rhode Island’s Kingston campus to advance health education, clinical training, and workforce development. (b) RIC Adams Library Renovations $50,000,000 Provides fifty million dollars ($50,000,000) to fund the construction of a student success and career readiness center and renovations located at the Adams Library on the Rhode Island College campus. (c) CCRI Workforce Innovation Center $60,000,000 Provides sixty million dollars ($60,000,000) to fund the construction of a new workforce innovation center located on the Warwick campus of the Community College of Rhode Island. Funds will be used for the construction of a modern career and technical educational facility designed to support workforce readiness and address critical workforce shortages in the State. (2) Housing and Homeownership $120,000,000 Approval of this question will allow the State to issue general obligation bonds, refunding bonds, and/or temporary notes in an amount not to exceed one hundred and twenty million dollars ($120,000,000) to increase and preserve the availability of affordable and accessible housing to meet the needs of all Rhode Islanders and support community revitalization through the redevelopment of existing structures, new construction, property acquisition, and infrastructure improvements, with at least twenty-five million dollars ($25,000,000) allocated towards increasing production of housing intended for homeownership. (3) Economic Development $115,000,000 Approval of this question will allow the State to issue general obligation bonds, refunding bonds, and/or temporary notes in an amount not to exceed one hundred and fifteen million dollars ($115,000,000) to fund industrial facilities infrastructure improvements, to be allocated as follows: (a) Site Development $70,000,000 Provides seventy million dollars ($70,000,000) for land acquisition or assembly, environmental remediation, infrastructure and utility installation, site preparation or development, and project investments. Eligible uses include, but are not limited to, large-scale industrial site development to create pad-ready locations and/or facilities, infrastructure improvements and investments within the Quonset Business Park, and land acquisition, preparation, and project investments within the I-195 District. (b) Growth Industry Infrastructure $45,000,000 Provides forty-five million dollars ($45,000,000) for infrastructure, facilities, projects, and investments that support Rhode Island’s ocean, defense, life sciences, data analytics and related industries. Eligible uses include, but are not limited to, water-based test ranges and onshore ocean or defense-related innovation/production facilities, as well as facilities, projects, and investments that advance businesses and job growth in the life sciences. (4) Career and Technical Education $50,000,000 Approval of this question will allow the State to issue general obligation bonds, refunding bonds, and/or temporary notes in an amount not to exceed fifty million dollars ($50,000,000) to provide local education agencies financing for the creation of new and/or the improvement of existing career and technical education programs. (5) Green Economy and Clean Energy Bonds $50,000,000 Approval of this question will allow the State to issue general obligation bonds, refunding bonds, and/or temporary notes in an amount not to exceed fifty million dollars ($50,000,000) for environmental and recreational purposes, to be allocated as follows: (a) Brownfields Remediation and Economic Development $3,000,000 Provides three million dollars ($3,000,000) for up to eighty percent (80%) matching grants to public, private, and/or non-profit entities for brownfield remediation projects. (b) Facility Improvements $8,000,000 Provides eight million dollars ($8,000,000) for the renovation and repair of existing facilities and recreational venues as well as the development and construction of new facilities and parks. (c) Local Recreation Projects $1,000,000 Provides one million dollars ($1,000,000) for up to eighty percent (80%) matching grants for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the growing needs for active outdoor recreational facilities. (d) Marine Infrastructure Development $1,000,000 Provides one million dollars ($1,000,000) to provide asset protection and emergency repair needs for most facilities, including recreational facilities, office space, marine infrastructure, and more. (e) Resilient Rhody Infrastructure Fund $20,000,000 Provides twenty million dollars ($20,000,000) to provide financial assistance to local governmental units for restoring and/or improving resiliency of infrastructure, vulnerable coastal habitats, and restoring rivers and stream floodplains. These funds will be prioritized to leverage significant funds to support local programs to improve community resiliency, stormwater abatement and public safety in the face of increased flooding, major storm events, and environmental degradation. (f) Narragansett Bay Watershed Restoration $7,000,000 Provides seven million dollars ($7,000,000) for activities to restore and protect the water quality and enhance the economic viability and environmental sustainability of Narragansett Bay and the State s watersheds. Eligible activities include nonpoint source pollution abatement, including stormwater management; nutrient loading abatement; commercial, industrial and agricultural pollution abatement; and riparian buffer and watershed ecosystem restoration. (g) Energy Efficiency $10,000,000 Provides ten million dollars ($10,000,000) for activities related to the financing of energy efficiency infrastructure. (6) Cultural Economy $50,000,000 Approval of this question will allow the State to issue general obligation bonds, refunding bonds, and/or temporary notes in an amount not to exceed fifty million dollars ($50,000,000) for the construction of a new Rhode Island State History Center. (a) State History Center $45,000,000 Provides forty-five million dollars ($45,000,000) for the construction of a new Rhode Island State History Center. (b) State Preservation Grants Program $5,000,000 Provides five million dollars ($5,000,000) in matching grants administered by the Rhode Island Historical Preservation and Heritage Commission to cities, towns and nonprofit organizations for capital improvements to public historic sites, museums and cultural art centers located in historic structures, and heritage museums throughout the State. SECTION 2. Ballot labels and applicability of general election laws. -- The Secretary of State shall prepare and deliver to the State Board of Elections ballot labels for each of the projects provided for in Section 1 hereof with the designations "approve" or "reject" provided next to the description of each such project to enable voters to approve or reject each such proposition. The general election laws, so far as consistent herewith, shall apply to this proposition. SECTION 3. Approval of projects by the people. -- If a majority of the People voting on the proposition in Section 1 hereof shall vote to approve any project stated therein, said project shall be deemed to be approved by the People. The authority to issue bonds, refunding bonds and/or temporary notes of the State shall be limited to the aggregate amount for all such projects as set forth in the proposition, which has been approved by the People. SECTION 4. Bonds for the 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 capital development bonds in serial form, in the name of and on behalf of the State, in amounts as may be specified by the Governor in an aggregate principal amount not to exceed the total amount for all projects approved by the People and designated as "capital development loan of 2026 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 approved by the People. All provisions in this Act relating to "bonds" shall also be deemed to apply to "refunding bonds." Capital development bonds issued under this Act 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. These capital development bonds shall bear such date or dates, mature at specified time or times, but not mature beyond the end of the twentieth (20 th ) State fiscal year following the fiscal year in which they are issued; bear interest payable semi-annually at a specified rate or different or varying rates: be payable at designated time or times at specified place or places; be subject to express terms of redemption or recall, with or without premium; be in a 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 by 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, the Governor’s approval shall be certified to the Secretary of State; the bonds shall be signed by the General Treasurer and countersigned by Secretary of State and shall bear the seal of the State. The signature approval of the Governor shall be endorsed on each bond. SECTION 5. Refunding bonds for the 2026 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 bonds to refund the 2026 capital development program bonds, in the name of and on behalf of the State, in amounts as may be specified by the Governor in an aggregate principal amount not to exceed the total amount approved by the People, to be designated as "capital development program loan of 2026 refunding bonds" (hereinafter "Refunding Bonds"). The General Treasurer with the approval of the Governor shall fix the terms and form of any Refunding Bonds issued under this Act in the same manner as the capital development bonds issued under this Act, 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. The proceeds of the Refunding Bonds, exclusive of any premium and accrual interest and net the underwriters’ cost, and cost of bond issuance, 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. The paying agent shall hold the Refunding Bond proceeds in trust until they are applied to prepay the capital development bonds. While such proceeds are held in trust, the proceeds may be invested for the benefit of the State in obligations of the United States of America or the State. If the General Treasurer shall deposit with the paying agent for the capital development bonds the proceeds of the Refunding Bonds, or proceeds from other sources, amounts that, when invested in obligations of the United States or the State, are sufficient to pay all principal, interest, and premium, if any, on the capital development bonds until these bonds are called for prepayment, then such capital development bonds shall not be considered debts of the State for any purpose starting 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 the capital development program. -- The General Treasurer is directed to deposit the proceeds from the sale of capital development bonds issued under this Act, exclusive of premiums and accrued interest and net the underwriters’ cost, and cost of bond issuance, in one or more of the depositories in which the funds of the State may be lawfully kept in special accounts (hereinafter cumulatively referred to as the "capital development bond fund") appropriately designated for each of the 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 the capital development bond fund shall be expended for the purposes specified in the proposition provided for in Section 1 hereof under the direction and supervision of the Director of Administration (hereinafter referred to as "Director"). The Director or his or her designee shall be vested with all power and authority necessary or incidental to the purposes of this Act, including but not limited to, 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 direct payment 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 direct payment for 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 direct payment for the cost of equipment, supplies, devices, materials and labor for repair, renovation or conversion of systems and structures as necessary for the 2026 capital development program bonds or notes hereunder from the proceeds thereof. No funds shall be expended in excess of the amount of the capital development bond fund designated for each project authorized in Section 1 hereof. With respect to the bonds and temporary notes described in Section 1, the proceeds shall be used for the following purposes: Question 1, relating to bonds in the amount of two hundred and fifteen million dollars ($215,000,000) to provide funding for higher education facilities to be allocated as follows: (a) University of Rhode Island Integrated Health Building $105,000,000 Provides one hundred and five million dollars ($105,000,000) for the construction of the new Integrated Health Building on the University of Rhode Island’s Kingston campus to advance health education, clinical training, and workforce development. (b) RIC Adams Library Renovations $50,000,000 Provides fifty million dollars ($50,000,000) to fund the construction of a student success and career readiness center and renovations located at the Adams Library the Rhode Island College campus. (c) CCRI Workforce Innovation Center $60,000,000 Provides sixty million dollars ($60,000,000) to fund the construction of a new workforce innovation center located on the Warwick campus of the Community College of Rhode Island. Funds will be used for the construction of a modern career and technical educational facility designed to support workforce readiness and address critical workforce shortages in the State. Question 2, relating to bonds in the amount of one hundred and twenty million dollars ($120,000,000) to increase and preserve the availability of affordable and accessible housing to meet the needs of all Rhode Islanders and support community revitalization through the redevelopment of existing structures, new construction, property acquisition, and infrastructure improvements, with at least twenty-five million dollars ($25,000,000) allocated towards increasing production of housing intended for homeownership. Question 3, relating to bonds in the amount of one hundred and fifteen million dollars ($115,000,000) to fund industrial facilities infrastructure improvements, to be allocated as follows: (a) Site Development $70,000,000 Provides seventy million dollars ($70,000,000) for land acquisition or assembly, environmental remediation, infrastructure and utility installation, site preparation or development, and project investments. Eligible uses include, but are not limited to, large-scale industrial site development to create pad-ready locations and/or facilities, infrastructure improvements and investments within the Quonset Business Park, and land acquisition, preparation, and project investments within the I-195 District. (b) Growth Industry Infrastructure $45,000,000 Provides forty-five million dollars ($45,000,000) for infrastructure, facilities, projects, and investments that support Rhode Island’s ocean, defense, life sciences, data analytics and related industries. Eligible uses include, but are not limited to, water-based test ranges and onshore ocean or defense-related innovation/production facilities, as well as facilities, projects, and investments that advance businesses and job growth in the life sciences. Question 4, relating to bonds in the amount of fifty million dollars ($50,000,000) to provide local education agencies financing for the creation of new and/or the improvement of existing career and technical education programs. Question 5, relating to bonds in the amount of fifty million dollars ($50,000,000) for environmental and recreational purposes, to be allocated as follows: (a) Brownfields Remediation and Economic Development $3,000,000 Provides three million dollars ($3,000,000) for up to eighty percent (80%) matching grants to public, private, and/or non-profit entities for brownfield remediation projects. (b) Facility Improvements $8,000,000 Provides eight million dollars ($8,000,000) for the renovation and repair of existing facilities and recreational venues as well as the development and construction of new facilities and parks. (c) Local Recreation Projects $1,000,000 Provides one million dollars ($1,000,000) for up to eighty percent (80%) matching grants for municipalities to acquire, develop, or rehabilitate local recreational facilities to meet the growing needs for active outdoor recreational facilities. (d) Marine Infrastructure Development $1,000,000 Provides one million dollars ($1,000,000) to provide asset protection and emergency repair needs for most facilities, including recreational facilities, office space, marine infrastructure, and more. (e) Resilient Rhody Infrastructure Fund $20,000,000 Provides twenty million dollars ($20,000,000) to provide financial assistance to local governmental units for restoring and/or improving resiliency of infrastructure, vulnerable coastal habitats, and restoring rivers and stream floodplains. These funds will be prioritized to leverage significant funds to support local programs to improve community resiliency, stormwater abatement and public safety in the face of increased flooding, major storm events, and environmental degradation. (f) Narragansett Bay Watershed Restoration $7,000,000 Provides seven million dollars ($7,000,000) for activities to restore and protect the water quality and enhance the economic viability and environmental sustainability of Narragansett Bay and the State s watersheds. Eligible activities include nonpoint source pollution abatement, including stormwater management; nutrient loading abatement; commercial, industrial and agricultural pollution abatement; and riparian buffer and watershed ecosystem restoration. (g) Energy Efficiency $10,000,000 Provides ten million dollars ($10,000,000) for activities related to the financing of energy efficiency infrastructure. Question 6, relating to bonds in the amount of fifty million dollars ($50,000,000) to provide funding for cultural economy efforts to be allocated as follows: (a) State History Center $45,000,000 Provides forty-five million dollars ($45,000,000) for the construction of a new Rhode Island State History Center. (b) State Preservation Grants Program $5,000,000 Provides five million dollars ($5,000,000) in matching grants administered by the Rhode Island Historical Preservation and Heritage Commission to cities, towns and nonprofit organizations for capital improvements to public historic sites, museums and cultural art centers located in historic structures, and heritage museums throughout the State. SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority of this Act shall be sold 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 in the best interests of the State. Any premiums and accrued interest, net of the cost of bond issuance and underwriter’s discount, which may be received on the sale of the capital development bonds or notes shall become part of the Rhode Island Capital Plan Fund of the State, unless directed by federal law or regulation to be used for some other purpose. In the event that the amount received from the sale of the capital development 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 the bonds as the same may become due, to redeem them in accordance with the terms thereof or otherwise to purchase them as the General Treasurer, with the approval of the Governor, shall deem to be in the best interests of the State. Any bonds or notes issued under the provisions of this Act and coupons on any capital development bonds, if properly executed by the manual or electronic signatures 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 is 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 the 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 10 of Title 35, entitled “State Investment Commission,” pursuant to the provisions of such chapter; provided, however, that the securities in which the capital development fund is invested shall remain a part of the capital development fund until exchanged for other securities; and provided further, that the income from investments of the capital development fund 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, unless directed by federal law or regulation to be used for some other purpose, 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. Appropriation. -- To the extent the debt service on these bonds 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, with the approval of the Director and the Governor, in anticipation of the issue of notes or bonds under the authority of this Act, to advance to the capital development bond fund for the purposes specified in Section 6 hereof, any funds of the State not specifically held for any particular purpose; provided, however, that all advances made to the capital development bond fund shall be returned to the general fund from the capital development bond fund forthwith upon the receipt by the capital development 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, or his or her designee, 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 the capital development bond fund and expended as a part thereof. The Director or his or her designee may also utilize any private funds that may be made available for the purposes of this Act. SECTION 13. Effective Date. -- Sections 1, 2, 3, 11, 12 and this Section 13 of this article shall take effect upon passage. 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 proposition contained in Section 1 hereof have indicated their approval of all or any projects thereunder. 34 ARTICLE 7 RELATING TO EDUCATION SECTION 1. Effective July 1, 2026, section 16-7-41.1 of the General Laws in Chapter 16- 7 entitled “Foundation Level School Support" is hereby amended to read as follows: 16-7-41.1. Eligibility for reimbursement. (a) School districts, not municipalities, may apply for and obtain approval for a project under the necessity of school construction process set forth in the regulations of the council on elementary and secondary education, provided, however, in the case of a municipality that issues bonds through the Rhode Island health and educational building corporation to finance or refinance school facilities for a school district that is not part of the municipality, the municipality may apply for and obtain approval for a project. Such approval will remain valid until June 30 of the third fiscal year following the fiscal year in which the council on elementary and secondary education’s approval is granted. Only those projects undertaken at school facilities under the care and control of the school committee and located on school property may qualify for reimbursement under §§ 16-7-35 — 16-7-47. Facilities with combined school and municipal uses or facilities that are operated jointly with any other profit or nonprofit agency do not qualify for reimbursement under §§ 16-7-35 — 16-7-47. Projects completed by June 30 of a fiscal year are eligible for reimbursement in the following fiscal year. A project for new school housing or additional housing shall be deemed to be completed when the work has been officially accepted by the school committee or when the housing is occupied for its intended use by the school committee, whichever is earlier. (b) Notwithstanding the provisions of this section, the board of regents shall not grant final approval for any project between June 30, 2011, and May 1, 2015, except for projects that are necessitated by immediate health and safety reasons. In the event that a project is requested during the moratorium because of immediate health and safety reasons, those proposals shall be reported to the chairs of the house and senate finance committees. (c) Any project approval granted prior to the adoption of the school construction regulations in 2007, and which are currently inactive; and any project approval granted prior to the adoption of the school construction regulations in 2007 which did not receive voter approval or which has not been previously financed, are no longer eligible for reimbursement under this chapter. The department of elementary and secondary education shall develop recommendations for further cost containment strategies in the school housing aid program. (d) Beginning July 1, 2015, the council on elementary and secondary education shall approve new necessity of school construction applications on an annual basis. The department of elementary and secondary education shall develop an annual application timeline for local education agencies seeking new necessity of school construction approvals. (e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten million dollars ($10,000,000) unless the prime contractor for the project has received prequalification from the school building authority. However, for projects commencing after July 1, 2026, and for subsequent fiscal years, no state funding shall be provided for projects in excess of ten million dollars ($10,000,000) unless the prime contractor for the project has received prequalification from the division of purchases. (f) Beginning July 1, 2019, the necessity of school construction process set forth in the regulations of the council on elementary and secondary education shall include a single statewide process, developed with the consultation of the department of environmental management, that will ensure community involvement throughout the investigation and remediation of contaminated building sites for possible reuse as the location of a school. That process will fulfill all provisions of § 23-19.14-5 related to the investigation of reuse of such sites for schools. (g) Beginning July 1, 2019, school housing projects exceeding one million five hundred thousand dollars ($1,500,000) subject to inflation shall include an owner’s program manager and a commissioning agent. The cost of the program manager and commissioning agent shall be considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5. However, for projects completing after July 1, 2026, and subsequent fiscal years, school housing projects exceeding ten million dollars ($10,000,000) subject to inflation shall include an owner’s program manager and a commissioning agent. The cost of the program manager and commissioning agent shall not exceed three percent (3%) of total project costs and shall be considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5. (h) Temporary housing, or swing space, for students shall be a reimbursable expense so long as a district can demonstrate that no other viable option to temporarily house students exists and provided that use of the temporary space is time limited for a period not to exceed twenty-four (24) months and tied to a specific construction project. (i) Environmental site remediation, as defined by the school building authority, shall be a reimbursable expense up to one million dollars ($1,000,000) per project. (j) If, within thirty (30) years of construction, a newly constructed school is sold to a private entity, the state shall receive a portion of the sale proceeds equal to that project’s housing aid reimbursement rate at the time of project completion. (k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being followed, and § 37-14.1-6, ensuring that minority business enterprises reach the required minimum participation. SECTION 2. Effective July 1, 2026, section 16-7.2-3 of the General Laws in Chapter 16- 7.2 entitled "The Education Equity and Property Tax Relief Act" is hereby amended to read as follows: 16-7.2-3. Permanent foundation education aid established . (a) Beginning in the 2012 fiscal year, the following foundation education-aid formula shall take effect. The foundation education aid for each district shall be the sum of the core instruction amount in subsection (a)(1) of this section and the amount to support high-need students in subsection (a)(2) of this section, which shall be multiplied by the district state-share ratio calculated pursuant to § 16-7.2-4 to determine the foundation aid. (1) The core instruction amount shall be an amount equal to a statewide, per-pupil core instruction amount as established by the department of elementary and secondary education, derived from the average of northeast regional expenditure data for the states of Rhode Island, Massachusetts, Connecticut, and New Hampshire from the National Center for Education Statistics (NCES) that will adequately fund the student instructional needs as described in the basic education program and multiplied by the district average daily membership as defined in § 16-7-22. Expenditure data in the following categories: instruction and support services for students, instruction, general administration, school administration, and other support services from the National Public Education Financial Survey, as published by NCES, and enrollment data from the Common Core of Data, also published by NCES, will be used when determining the core instruction amount. The core instruction amount will be updated annually. For the purpose of calculating this formula, school districts’ resident average daily membership shall exclude charter school and state-operated school students. (2) The amount to support high-need students beyond the core instruction amount shall be determined by: (i) Multiplying a student success factor of forty percent (40%) ; provided further, for the fiscal year beginning July 1, 2026, and for subsequent fiscal years, the student success factor shall be forty-three percent (43%); by the core instruction per-pupil amount described in subsection (a)(1) of this section and applying that amount for each resident child whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines, hereinafter referred to as “poverty status.” By October 1, 2022, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2024 and thereafter, the department of elementary and secondary education shall develop and utilize a poverty measure that in the department’s assessment most accurately serves as a proxy for the poverty status referenced in this subsection and does not rely on the administration of school nutrition programs. The department shall utilize this measure in calculations pursuant to this subsection related to the application of the student success factor, in calculations pursuant to § 16-7.2-4 related to the calculation of the state share ratio, and in the formulation of estimates pursuant to subsection (b) below. The department may also include any recommendations which seek to mitigate any disruptions associated with the implementation of this new poverty measure or improve the accuracy of its calculation. Beginning with the FY 2024 calculation, students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines will be determined by participation in the supplemental nutrition assistance program (SNAP). The number of students directly certified through the department of human services shall be multiplied by a factor of 1.6; and (ii) Multiplying a multilingual learner (MLL) factor of twenty percent (20%) by the core instruction per-pupil amount described in subsection (a)(1) of this section, applying that amount for each resident child identified in the three lowest proficiency categories using widely adopted, independent standards and assessments in accordance with subsection (f)(1) of this section and as identified by the commissioner and defined by regulations of the council on elementary and secondary education. Local education agencies shall report annually to the department of elementary and secondary education by September 1, outlining the planned and prior year use of all funding pursuant to this subsection to provide services to MLL students in accordance with requirements set forth by the commissioner of elementary and secondary education. The department shall review the use of funds to ensure consistency with established best practices. (b) The department of elementary and secondary education shall provide an estimate of the foundation education aid cost as part of its budget submission pursuant to § 35-3-4. The estimate shall include the most recent data available as well as an adjustment for average daily membership growth or decline based on the prior year experience. (c) In addition, the department shall report updated figures based on the average daily membership as of October 1 by December 1. (d) Local education agencies may set aside a portion of funds received under subsection (a) to expand learning opportunities such as after school and summer programs, full-day kindergarten and/or multiple pathway programs, provided that the basic education program and all other approved programs required in law are funded. (e) The department of elementary and secondary education shall promulgate such regulations as are necessary to implement fully the purposes of this chapter. (f)(1) By October 1, 2023, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2025, the department of elementary and secondary education shall evaluate the number of students by district who qualify as multilingual learner (MLL) students and MLL students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines. The submission shall also include segmentation of these populations by levels as dictated by the WIDA multilingual learner assessment tool used as an objective benchmark for English proficiency. The department shall also prepare and produce expense data sourced from the uniform chart of accounts to recommend funding levels required to support students at the various levels of proficiency as determined by the WIDA assessment tool. Utilizing this information, the department shall recommend a funding solution to meet the needs of multilingual learners; this may include but not be limited to inclusion of MLL needs within the core foundation formula amount through one or multiple weights to distinguish different students of need or through categorical means. (2) By October 1, 2024, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2026, the department of elementary and secondary education shall develop alternatives to identify students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines through participation in state-administered programs, including, but not limited to, the supplemental nutrition assistance program (SNAP), and RIteCare and other programs that include the collection of required supporting documentation. The department may also include any recommendations that seek to mitigate any disruptions associated with implementation of this new poverty measure or improve the accuracy of its calculation. (3) The department shall also report with its annual budget request information regarding local contributions to education aid and compliance with §§ 16-7-23 and 16-7-24. The report shall also compare these local contributions to state foundation education aid by community. The department shall also report compliance to each city or town school committee and city or town council. (4) By October 1, 2025, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2027, the department of elementary and secondary education shall submit a report developed in coordination with the department of administration and the Rhode Island longitudinal data system within the office of the postsecondary commissioner. The report shall provide an overview of the process for matching the department of human services program participation data to the department of elementary and secondary education student enrollment records for use in the education funding formula and recommend methods to ensure consistency and accuracy in future matching processes. (5) As part of its FY 2027 budget submission, the department shall also submit an estimate of foundation education aid that uses expanded direct certification with Medicaid matching in consultation with the Rhode Island longitudinal data system and the executive office of health and human services to identify students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines, in addition to an estimate under the current law poverty determination. (6) By December 31, 2025, the department of elementary and secondary education shall also develop and submit a report to the governor, speaker of the house, and senate president on current and recommended processes to ensure the consistency and validity of submitted high-cost special education data from local education agencies. SECTION 3. Effective July 1, 2026, section 16-105-3 of the General Laws in Chapter 16- 105 entitled "School Building Authority" is hereby amended to read as follows: 16-105-3. Roles and responsibilities. The school building authority roles and responsibilities shall include: (1) Management of a system with the goal of ensuring equitable and adequate school housing for all public school children in the state; (2) Prevention of the cost of school housing from interfering with the effective operation of the schools; (3) Management of school housing aid in accordance with statute; (4) Reviewing and making recommendations to the council on elementary and secondary education on necessity of school construction applications for state school housing aid and the school building authority capital fund, based on the recommendations of the school building authority advisory board; (5) Promulgating, managing, and maintaining school construction regulations, standards, and guidelines applicable to the school housing program, based on the recommendations of the school building authority advisory board, created in § 16-105-8. Said regulations shall require conformance with the minority business enterprise requirements set forth in § 37-14.1-6; (6) Developing a prequalification and review process for prime contractors, architects, and engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the school building authority in granting a prequalification to prime contractors shall include, but not be limited to, the contractor’s history of completing complex projects on time and on budget, track record of compliance with applicable environmental and safety regulations, evidence that completed prior projects prioritized the facility’s future maintainability, and compliance with applicable requirements for the use of women and minority owned subcontractors; (i) At least annually, a list of prequalified contractors, architects, and engineers shall be publicly posted with all other program information; (7) (6) Providing technical assistance and guidance to school districts on the necessity of school construction application process; (8) (7) Providing technical advice and assistance, training, and education to cities, towns, and/or local education agencies and to general contractors, subcontractors, construction or project managers, designers and others in planning, maintenance, and establishment of school facility space; (9) (8) Developing a project priority system, based on the recommendations of the school building authority advisory board, in accordance with school construction regulations for the school building authority capital fund, subject to review and, if necessary, to be revised on intervals not to exceed five (5) years. Project priorities shall include, but not be limited to, the following order of priorities: (i) Projects to replace or renovate a building that is structurally unsound or otherwise in a condition seriously jeopardizing the health and safety of school children where no alternative exists; (ii) Projects needed to prevent loss of accreditation; (iii) Projects needed for the replacement, renovation, or modernization of the HVAC system in any schoolhouse to increase energy conservation and decrease energy-related costs in said schoolhouse; (iv) Projects needed to replace or add to obsolete buildings in order to provide for a full range of programs consistent with state and approved local requirements; and (v) Projects needed to comply with mandatory, instructional programs; (10) (9) Maintaining a current list of requested school projects and the priority given them; (11) (10) Collecting and maintaining readily available data on all the public school facilities in the state; (12) (11) Collecting, maintaining, and making publicly available quarterly progress reports of all ongoing school construction projects that shall include, at a minimum, the costs of the project and the time schedule of the project; (13) (12) Recommending policies and procedures designed to reduce borrowing for school construction programs at both state and local levels; (14) (13) At least every five (5) years, conducting a needs survey to ascertain the capital construction, reconstruction, maintenance, and other capital needs for schools in each district of the state, including public charter schools; (15) (14) Developing a formal enrollment projection model or using projection models already available; (16) (15) Encouraging local education agencies to investigate opportunities for the maximum utilization of space in and around the district; (17 ) (16) Collecting and maintaining a clearinghouse of prototypical school plans that may be consulted by eligible applicants; (18) (17) Retaining the services of consultants, as necessary, to effectuate the roles and responsibilities listed within this section; (19) (18) No district shall receive a combined total of more than twenty (20) incentive percentage points for projects that commence construction by December 30, 2023, and five (5) incentive points for projects that commence construction thereafter; provided further, these caps shall be in addition to amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a district’s share shall not be decreased by more than half of its regular share irrespective of the number of incentive points received, nor shall a district’s state share increase by more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective of the number of incentive points received. Notwithstanding any provision of the general laws to the contrary, the reimbursement or aid received under this chapter or chapter 38.2 of title 45 shall not exceed one hundred percent (100%) of the sum of the total project costs plus interest costs. If a two hundred and fifty million dollar ($250,000,000) general obligation bond is approved on the 19 November 2018 ballot, projects approved between May 1, 2015, and January 1, 2018, are eligible to receive incentive points (above and beyond what the project was awarded at the time of approval) pursuant to § 16-7-39 and § 16-7-40. Provided, however, any project approved during this time period with a project cost in excess of one million five hundred thousand dollars ($1,500,000), which does not include an owner’s program manager and a commissioning agent, shall only be eligible to receive five (5) incentive points. Incentive points awarded pursuant to the provisions of this subsection shall only be applied to reimbursements occurring on or after July 1, 2018. Any project approved between May 1, 2015, and January 1, 2018, that is withdrawn and/or resubmitted for approval shall not be eligible for any incentive points. 28 SECTION 4. Sections 16-113-1, 16-113-2, 16-113-3, 16-113-4, and 16-113-7 of the General Laws in Chapter 16-113 entitled “Rhode Island Hope Scholarship Pilot Program Act” are hereby amended to read as follows: 16-113-1. Short title. This chapter shall be known and may be cited as the “Rhode Island Hope Scholarship Pilot Program Act”. 16-113-2. Legislative findings and purpose. (a) The general assembly finds and declares that: (1) Education is critical for the state’s young people to achieve their aspirations and develop their talents; (2) The state’s economic success depends on a highly educated and skilled workforce; (3) The state’s future prosperity depends upon its ability to make educational opportunities beyond high school available for all students; (4) The coronavirus has inflicted undue hardships on students and their families, creating barriers to a four-year (4) college degree; (5) A merit-based tuition reduction program will help make a four-year (4) college degree available to all students; (6) Rhode Island college offers students a feasible opportunity to obtain a four-year (4) degree, but remains an underutilized resource in the state; and (7) The state of Rhode Island’s motto is “Hope”. (b) In order to address the findings set forth in subsection (a) of this section, the purpose of this chapter is to increase the number of students enrolling in and completing four-year (4) degrees and certificates on time from Rhode Island college, and to promote more graduates in high- need fields such as nursing, pre-K through grade twelve (12) education, and the trades, which are fields for which Rhode Island college provides a strong and affordable education. (c) The purpose of the pilot program is also to determine whether a scholarship program for Rhode Island college that is modeled on the promise scholarship program established in chapter 107 of this title would be successful in attaining the goals set forth in this section. 16-113-3. Establishment of scholarship program. There is hereby established the Rhode Island hope scholarship pilot program. The general assembly shall annually appropriate the funds necessary to implement the purposes of this chapter for the periods of the pilot program . Additional funds beyond the scholarships may be appropriated to support and advance the Rhode Island hope scholarship pilot program. In addition to appropriation by the general assembly, charitable donations may be accepted into the scholarship program. 16-113-4. Definitions. When used in this chapter, the following terms shall have the following meanings: (1) “ADA” means the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., as may be amended from time to time. (2) “Certificate” means any certificate program with labor market value as defined by the postsecondary commissioner. (3) “College-level credit” means credit awarded by a college or university for completion of its own courses or other academic work. (4) “FAFSA” means the Free Application for Federal Student Aid form. (5) “General education coursework” means the educational foundation of knowledge, skills, and attitudes that prepares students for success in their majors and their personal and professional lives after graduation. It includes, but is not limited to, the required coursework of all degrees developed by each eligible postsecondary institution that is approved by the council on postsecondary education that is intended to ensure that all graduates of a state institution have a balanced core of competencies and knowledge. This does not necessarily include coursework specifically required for one’s major. (6) “Mandatory fees and tuition” means the costs that every student is required to pay in order to enroll in classes, and does not include room and board, textbooks, program fees that may exist in some majors, course fees that may exist for some specific courses, meal plans, or travel. (7) “On track to graduate on time” means the standards determined by Rhode Island college in establishing the expectation of a student to graduate with a bachelor’s degree within four (4) years of enrollment, or the prescribed completion time for a student completing a certificate (recognizing that some students, including students who require developmental education, are double majors, or are enrolled in certain professional programs may require an extended time period for degree completion). (8) “ Pilot p P rogram” and or “scholarship program” means the Rhode Island hope scholarship pilot program that is established pursuant to § 16-113-3. (9) “Reasonable accommodations” means any necessary modifications or adjustment to a facility, equipment, program, or manner of operation as required by the Americans with Disabilities Act (“ADA”) and section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 791, as may be amended from time to time. (10) “Recipient student” means a student attending Rhode Island college who qualifies to receive the Rhode Island hope scholarship pursuant to § 16-113-6. (11) “State” means the state of Rhode Island. (12) “Student with a disability” means any student otherwise eligible pursuant to this chapter who has a physical, developmental, or hidden disability or disabilities, as defined in § 42- 87-1, that would create a hardship or other functional obstacles preventing participation in this program. 16-113-7. Reporting and disbursement. (a) On or before November 10, 2023, and on or before November 10 and May 10 thereafter for every year through and including calendar year 2030 of each fiscal year following fiscal year 2024 , Rhode Island college shall submit a report to the director of the office of management and budget, the state budget officer, the house fiscal advisor, the senate fiscal advisor, the commissioner of postsecondary education, and the chair of the council on postsecondary education, detailing the following: (1) The number of students eligible to participate in the scholarship program; (2) The amount of federal and institutional financial aid anticipated to be received by recipient students; (3) The aggregate tuition and mandatory fee costs attributable to recipient students; (4) The resulting total cost of the scholarship program to the state; and (5) The report shall contain such data for both the current fiscal year and the most up-to- date forecast for the following fiscal year. Data reported shall be subdivided by student-year cohort and shall be accompanied by a written explanation detailing the estimating methodology utilized and any impact(s) the forecasted data may present to institutional capacity, operational costs, and the tuition/fee revenue base of the institution. (b) On or before July 1, 2030, Rhode Island college and the commissioner of postsecondary education shall submit a report evaluating the program based on all cohorts to the governor, speaker of the house, and the president of the senate. This evaluation shall include the following: (1) The number of students who started in each cohort; (2) The number of students in each cohort who have attained a degree or certification in an on-time manner; (3) The number of students in each cohort who have not attained a degree or certification in an on-time manner and an analysis of why that has happened; (4) The number of students in each cohort who began the program but have been unable to continue or complete the program and an analysis of why that has happened; (5) The costs of the program and the costs of continuing the program; (6) Suggestions for ways to increase the success of the program; (7) Recommendations as to modifying, continuing, expanding, curtailing, or discontinuing the program; and (8) Any such other recommendations or information as Rhode Island college and the commissioner of postsecondary education deem appropriate to include in the evaluation. (c) The office of management and budget, in consultation with the office of the postsecondary commissioner, shall oversee the apportionment and disbursement of all funds appropriated for the purpose of the scholarship program. SECTION 5. Section 16-113-10 of the General Laws in Chapter 16-113 entitled “Rhode Island Hope Scholarship Pilot Program Act” is hereby repealed. 16-113-10. Funding of and sunset of pilot program. The Rhode Island hope scholarship pilot program shall be funded from July 1, 2023, through and including June 30, 2030. There shall be no further funding of the pilot program without further action of the general assembly. Any final reports due pursuant to this chapter shall be filed pursuant to the dates set forth herein. SECTION 6. Effective July 1, 2026, section 45-38.2-2 of the General Laws in Chapter 45- 38.2 entitled "School Building Authority Capital Fund" is hereby amended to read as follows: 45-38.2-2. School building authority capital fund. (a) There is hereby established a school building authority capital fund. The corporation shall establish and set up on its books the fund, to be held in trust and to be administered by the corporation as provided in this chapter. This fund shall be in addition to the annual appropriation for committed expenses related to the repayment of housing aid commitments. The corporation shall deposit the following monies into the fund: (1) The difference between the annual housing aid appropriation and housing aid commitment amounts appropriated or designated to the corporation by the state for the purposes of the foundation program for school housing; provided that for FY 2019 and FY 2020 that amount shall be used for technical assistance to districts pursuant to § 16-105-3(7); (2) (1) Loan repayments, bond refinance interest savings, and other payments received by the corporation pursuant to loan or financing agreements with cities, towns, or local education agencies executed in accordance with this chapter; (3) (2) Investment earnings on amounts credited to the fund; (4) (3) Proceeds of bonds of the corporation issued in connection with this chapter to the extent required by any trust agreement for such bonds; (5) (4) Administrative fees levied by the corporation, with respect to financial assistance rendered under this chapter and specified in § 45-38.2-3(a)(4), less operating expenses; (6) (5) Other amounts required by provisions of this chapter or agreement, or any other law or any trust agreement pertaining to bonds to be credited to the fund; and (7) (6) Any other funds permitted by law which the corporation in its discretion shall determine to credit thereto. (b) The corporation shall establish and maintain fiscal controls and accounting procedures conforming to generally accepted government accounting standards sufficient to ensure proper accounting for receipts in and disbursements from the school building authority capital fund. (c) The school building authority shall establish and maintain internal controls to ensure that local education agencies are providing adequate asset protection plans, all local education agencies have equal access and opportunity to address facility improvements on a priority basis, and to ensure that funding from the school building authority capital fund has the greatest impact on facility gaps in state priority areas. The school building authority will also manage necessity of school construction approvals in accordance with the funding levels set forth by the general assembly. SECTION 7. This article shall take effect upon passage, except for sections 1, 2, 3 and 6 which shall be effective July 1, 2026. 10 ARTICLE 8 RELATING TO MEDICAL ASSISTANCE SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled "Licensing of Healthcare Facilities" is hereby amended to read as follows: 23-17-38.1. Hospitals – Licensing fee. (a) There is imposed a hospital licensing fee described in subsections (c) through (f) for state fiscal years 2024 and 2025 against net patient-services revenue of every non-government owned hospital as defined herein for the hospital’s first fiscal year ending on or after January 1, 2022. The hospital licensing fee shall have three (3) tiers with differing fees based on inpatient and outpatient net patient-services revenue. The executive office of health and human services, in consultation with the tax administrator, shall identify the hospitals in each tier, subject to the definitions in this section, by July 15, 2023, and shall notify each hospital of its tier by August 1, 2023. (b) There is also imposed a hospital licensing fee described in subsections (c) through (f) for state fiscal year s 2026 and 2027 against net patient-services revenue of every non-government owned hospital as defined herein for the hospital’s first fiscal year ending on or after January 1, 2023. The hospital licensing fee shall have three (3) tiers with differing fees based on inpatient and outpatient net patient-services revenue. The executive office of health and human services, in consultation with the tax administrator, shall identify the hospitals in each tier, subject to the definitions in this section, annually by July 15 , 2025 , and shall notify each hospital of its assigned tier by August 1 , 2025 . (c) Tier 1 is composed of hospitals that do not meet the description of either Tier 2 or Tier 23 3. (1) The inpatient hospital licensing fee for Tier 1 is equal to thirteen and twelve hundredths percent (13.12%) of the inpatient net patient-services revenue derived from inpatient net patient- services revenue of every Tier 1 hospital. (2) The outpatient hospital licensing fee for Tier 1 is equal to thirteen and thirty hundredths percent (13.30%) of the net patient-services revenue derived from outpatient net patient-services revenue of every Tier 1 hospital. (d) Tier 2 is composed of high Medicaid/uninsured cost hospitals and independent hospitals. (1) The inpatient hospital licensing fee for Tier 2 is equal to two and sixty-three hundredths percent (2.63%) of the inpatient net patient-services revenue derived from inpatient net patient- services revenue of every Tier 2 hospital. (2) The outpatient hospital licensing fee for Tier 2 is equal to two and sixty-six hundredths percent (2.66%) of the outpatient net patient-services revenue derived from outpatient net patient- services revenue of every Tier 2 hospital. (e) Tier 3 is composed of hospitals that are Medicare-designated low-volume hospitals and rehabilitative hospitals. (1) The inpatient hospital licensing fee for Tier 3 is equal to one and thirty-one hundredths percent (1.31%) of the inpatient net patient-services revenue derived from inpatient net patient- services revenue of every Tier 3 hospital. (2) The outpatient hospital licensing fee for Tier 3 is equal to one and thirty-three hundredths percent (1.33%) of the outpatient net patient-services revenue derived from outpatient net patient-services revenue of every Tier 3 hospital. (f) There is also imposed a hospital licensing fee for state fiscal year 2024 against state- government owned and operated hospitals in the state as defined herein. The hospital licensing fee is equal to five and twenty-five hundredths percent (5.25%) of the net patient-services revenue of every hospital for the hospital’s first fiscal year ending on or after January 1, 2022. There is also imposed a hospital licensing fee for state fiscal years 2025 , and 2026 , and 2027 against state- government owned and operated hospitals in the state as defined herein equal to five and twenty- five hundredths percent (5.25%) of the net patient-services revenue of every hospital for the hospital’s first fiscal year ending on or after January 1, 2023. (g) The hospital licensing fee described in subsections (b) through (f) is subject to U.S. Department of Health and Human Services approval of a request to waive the requirement that healthcare-related taxes be imposed uniformly as contained in 42 C.F.R. § 433.68(d). (h) This hospital licensing fee shall be administered and collected by the tax administrator, division of taxation within the department of revenue, and all the administration, collection, and other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator before June 25 of each fiscal year, and payments shall be made by electronic transfer of monies to the tax administrator and deposited to the general fund. Every hospital shall, on or before August 1 of each fiscal year, make a return to the tax administrator containing the correct computation of inpatient and outpatient net patient-services revenue for the hospital data referenced in this section subsection (a) and/or (b) , and the licensing fee due upon that amount. All returns shall be signed by the hospital’s authorized representative, subject to the pains and penalties of perjury. (i) For purposes of this section the following words and phrases have the following meanings: (1) “Gross patient-services revenue” means the gross revenue related to patient care services. (2) “High Medicaid/uninsured cost hospital” means a hospital for which the hospital’s total uncompensated care, as calculated pursuant to § 40-8.3-2(4), divided by the hospital’s total net patient-services revenues, is equal to six percent (6.0%) or greater. (3) “Hospital” means the actual facilities and buildings in existence in Rhode Island, licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless of changes in licensure status pursuant to chapter 17.14 of this title (hospital conversions) and § 23-17-6(b) (change in effective control), that provides short-term acute inpatient and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated Medicaid managed care payment rates for a court-approved purchaser that acquires a hospital through receivership, special mastership, or other similar state insolvency proceedings (which court- approved purchaser is issued a hospital license after January 1, 2013) shall be based upon the newly negotiated rates between the court-approved purchaser and the health plan, and such rates shall be effective as of the date that the court-approved purchaser and the health plan execute the initial agreement containing the newly negotiated rate. The rate-setting methodology for inpatient hospital payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and 40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases for each annual twelve-month (12) period as of July 1 following the completion of the first full year of the court-approved purchaser’s initial Medicaid managed care contract. (4) “Independent hospitals” means a hospital not part of a multi-hospital system. (5) “Inpatient net patient-services revenue” means the charges related to inpatient care services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual allowances. (6) “Medicare-designated low-volume hospital” means a hospital that qualifies under 42 C.F.R. 412.101(b)(2) for additional Medicare payments to qualifying hospitals for the higher incremental costs associated with a low volume of discharges. (7) “Net patient-services revenue” means the charges related to patient care services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual allowances. (8) “Non-government owned hospitals” means a hospital not owned and operated by the state of Rhode Island. (9) “Outpatient net patient-services revenue” means the charges related to outpatient care services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual allowances. (10) “Rehabilitative hospital” means Rehabilitation Hospital Center licensed by the Rhode Island department of health. (11) “State-government owned and operated hospitals” means a hospital facility licensed by the Rhode Island department of health, owned and operated by the state of Rhode Island. (j) The tax administrator in consultation with the executive office of health and human services shall make and promulgate any rules, regulations, and procedures not inconsistent with state law and fiscal procedures that he or she deems necessary for the proper administration of this section and to carry out the provisions, policy, and purposes of this section. (k) The licensing fee imposed by subsections (a) through (f) shall apply to hospitals as defined herein that are duly licensed on July 1, 2024, and shall be in addition to the inspection fee imposed by § 23-17-38 and to any licensing fees previously imposed in accordance with this section. SECTION 2. Sections 40-8-13.4 and 40-8-19 of the General Laws in Chapter 40-8 entitled “Medical Assistance” is hereby amended to read as follows: 40-8-13.4. Rate methodology for payment for in-state and out-of-state hospital services. (a) The executive office of health and human services (“executive office”) shall implement a new methodology for payment for in-state and out-of-state hospital services in order to ensure access to, and the provision of, high-quality and cost-effective hospital care to its eligible recipients. (b) In order to improve efficiency and cost-effectiveness, the executive office shall: (1)(i) With respect to inpatient services for persons in fee-for-service Medicaid, which is non-managed care, implement a new payment methodology for inpatient services utilizing the Diagnosis Related Groups (DRG) method of payment, which is, a patient-classification method that provides a means of relating payment to the hospitals to the type of patients cared for by the hospitals. It is understood that a payment method based on DRG may include cost outlier payments and other specific exceptions. The executive office will review the DRG-payment method and the DRG base price annually, making adjustments as appropriate in consideration of such elements as trends in hospital input costs; patterns in hospital coding; beneficiary access to care; and the Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index. For the twelve-month (12) period beginning July 1, 2015, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall not exceed ninety-seven and one-half percent (97.5%) of the payment rates in effect as of July 1, 2014. Beginning July 1, 2019, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall be 107.2% of the payment rates in effect as of July 1, 2018. Increases in the Medicaid fee-for-service DRG hospital payments for the twelve-month (12) period beginning July 1, 2020, shall be based on the payment rates in effect as of July 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national Prospective Payment System (IPPS) Hospital Input Price Index. Beginning July 1, 2022, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall be one hundred five percent (105%) of the payment rates in effect as of July 1, 2021. Beginning July 1, 2026, the DRG base rate for Medicaid fee-for-service inpatient hospital services shall be one hundred and two and five-tenths percent (102.5%) of the payment rates in effect as of July 1, 2025. Increases in the Medicaid fee-for-service DRG hospital payments for each annual twelve-month (12) period beginning July 1, 202 3 7 , shall be based on the payment rates in effect as of July 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national Prospective Payment System (IPPS) Hospital Input Price Index. (ii) With respect to inpatient services, (A) It is required as of January 1, 2011, until 14 December 31, 2011, that the Medicaid managed care payment rates between each hospital and health plan shall not exceed ninety and one-tenth percent (90.1%) of the rate in effect as of June 30, 2010. Increases in inpatient hospital payments for each annual twelve-month (12) period beginning January 1, 2012, may not exceed the Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index for the applicable period; (B) Provided, however, for the twenty-four-month (24) period beginning July 1, 2013, the Medicaid managed care payment rates between each hospital and health plan shall not exceed the payment rates in effect as of January 1, 2013, and for the twelve-month (12) period beginning July 1, 2015, the Medicaid managed care payment inpatient rates between each hospital and health plan shall not exceed ninety-seven and one-half percent (97.5%) of the payment rates in effect as of 24 January 1, 2013; (C) Increases in inpatient hospital payments for each annual twelve-month (12) period beginning July 1, 2017, shall be the Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1; (D) Beginning July 1, 2019, the Medicaid managed care payment inpatient rates between each hospital and health plan shall be 107.2% of the payment rates in effect as of January 1, 2019, and shall be paid to each hospital retroactively to July 1; (E) Increases in inpatient hospital payments for each annual twelve-month (12) period beginning July 1, 2020, shall be based on the payment rates in effect as of January 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1; the executive office will develop an audit methodology and process to assure that savings associated with the payment reductions will accrue directly to the Rhode Island Medicaid program through reduced managed care plan payments and shall not be retained by the managed care plans; (F) Beginning July 1, 2022, the Medicaid managed care payment inpatient rates between each hospital and health plan shall be one hundred five percent (105%) of the payment rates in effect as of January 1, 2022, and shall be paid to each hospital retroactively to July 1 within ninety days of passage; (G) Beginning July 1, 2026, the Medicaid managed care payment inpatient rates between each hospital and health plan shall be one hundred and two and five-tenths percent (102.5%) of the payment rates in effect as of January 1, 2025; (H) Increases in inpatient hospital payments for each annual twelve-month (12) period beginning July 1, 202 3 7 , shall be based on the payment rates in effect as of January 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national CMS Prospective Payment System (IPPS) Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1 within ninety days of passage; ( H I) All hospitals licensed in Rhode Island shall accept such payment rates as payment in full; and ( I J) For all such hospitals, compliance with the provisions of this section shall be a condition of participation in the Rhode Island Medicaid program. (2) With respect to outpatient services and notwithstanding any provisions of the law to the contrary, for persons enrolled in fee-for-service Medicaid, the executive office will reimburse hospitals for outpatient services using a rate methodology determined by the executive office and in accordance with federal regulations. Fee-for-service outpatient rates shall align with Medicare payments for similar services. Notwithstanding the above, there shall be no increase in the Medicaid fee-for-service outpatient rates effective on July 1, 2013, July 1, 2014, or July 1, 2015. For the twelve-month (12) period beginning July 1, 2015, Medicaid fee-for-service outpatient rates shall not exceed ninety-seven and one-half percent (97.5%) of the rates in effect as of July 1, 2014. Increases in the outpatient hospital payments for the twelve-month (12) period beginning July 1, 2016, may not exceed the CMS national Outpatient Prospective Payment System (OPPS) Hospital Input Price Index. Beginning July 1, 2019, the Medicaid fee-for-service outpatient rates shall be 107.2% of the payment rates in effect as of July 1, 2018. Increases in the outpatient hospital payments for the twelve-month (12) period beginning July 1, 2020, shall be based on the payment rates in effect as of July 1 of the preceding fiscal year, and shall be the CMS national Outpatient Prospective Payment System (OPPS) Hospital Input Price Index. Beginning July 1, 2022, the Medicaid fee-for-service outpatient rates shall be one hundred five percent (105%) of the payment rates in effect as of July 1, 2021. Beginning July 1, 2026, the Medicaid fee-for-service outpatient rates shall be one hundred and two and five-tenths percent (102.5%) of the payment rates in effect as of July 1, 2025. Increases in the outpatient hospital payments for each annual twelve-month (12) period beginning July 1, 202 3 7 , shall be based on the payment rates in effect as of July 1 of the preceding fiscal year, and shall be the CMS national Outpatient Prospective Payment System (OPPS) Hospital Input Price Index. With respect to the outpatient rate, (i) It is required as of January 1, 2011, until December 31, 2011, that the Medicaid managed care payment rates between each hospital and health plan shall not exceed one hundred percent (100%) of the rate in effect as of June 30, 2010; (ii) Increases in hospital outpatient payments for each annual twelve-month (12) period beginning January 1, 2012, until July 1, 2017, may not exceed the Centers for Medicare and Medicaid Services national CMS Outpatient Prospective Payment System OPPS Hospital Price Index for the applicable period; (iii) Provided, however, for the twenty-four-month (24) period beginning July 1, 2013, the Medicaid managed care outpatient payment rates between each hospital and health plan shall not exceed the payment rates in effect as of January 1, 2013, and for the twelve-month (12) period beginning July 1, 2015, the Medicaid managed care outpatient payment rates between each hospital and health plan shall not exceed ninety-seven and one-half percent (97.5%) of the payment rates in effect as of January 1, 2013; (iv) Increases in outpatient hospital payments for each annual twelve-month (12) period beginning July 1, 2017, shall be the Centers for Medicare and Medicaid Services national CMS OPPS Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1; (v) Beginning July 1, 2019, the Medicaid managed care outpatient payment rates between each hospital and health plan shall be one hundred seven and two-tenths percent (107.2%) of the payment rates in effect as of January 1, 2019, and shall be paid to each hospital retroactively to July 1; (vi) Increases in outpatient hospital payments for each annual twelve-month (12) period beginning July 1, 2020, shall be based on the payment rates in effect as of January 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national CMS OPPS Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1; (vii) Beginning July 1, 2022, the Medicaid managed care outpatient payment rates between each hospital and health plan shall be one hundred five percent (105%) of the payment rates in effect as of January 1, 2022, and shall be paid to each hospital retroactively to July 1 within ninety days of passage; (viii) Beginning July 1, 2026, the Medicaid managed care outpatient payment rates between each hospital and health plan shall be one hundred and two and five-tenths percent (102.5%) of the payment rates in effect as of January 1, 2025; (ix) Increases in outpatient hospital payments for each annual twelve-month (12) period beginning July 1, 202 0 7 , shall be based on the payment rates in effect as of January 1 of the preceding fiscal year, and shall be the Centers for Medicare and Medicaid Services national CMS OPPS Hospital Input Price Index, less Productivity Adjustment, for the applicable period and shall be paid to each hospital retroactively to July 1. (3) “Hospital,” as used in this section, shall mean the actual facilities and buildings in existence in Rhode Island, licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital conversions) and § 23-17-6(b) (change in effective control), that provides short-term, acute inpatient and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the Medicaid managed care payment rates for a court-approved purchaser that acquires a hospital through receivership, special mastership or other similar state insolvency proceedings (which court- approved purchaser is issued a hospital license after January 1, 2013), shall be based upon the new rates between the court-approved purchaser and the health plan, and such rates shall be effective as of the date that the court-approved purchaser and the health plan execute the initial agreement containing the new rates. The rate-setting methodology for inpatient-hospital payments and outpatient-hospital payments set forth in subsections (b)(1)(ii)(C) and (b)(2), respectively, shall thereafter apply to increases for each annual twelve-month (12) period as of July 1 following the completion of the first full year of the court-approved purchaser’s initial Medicaid managed care contract. (c) It is intended that payment utilizing the DRG method shall reward hospitals for providing the most efficient care, and provide the executive office the opportunity to conduct value- based purchasing of inpatient care. (d) The secretary of the executive office is hereby authorized to promulgate such rules and regulations consistent with this chapter, and to establish fiscal procedures he or she deems necessary, for the proper implementation and administration of this chapter in order to provide payment to hospitals using the DRG-payment methodology. Furthermore, amendment of the Rhode Island state plan for Medicaid, pursuant to Title XIX of the federal Social Security Act, 42 U.S.C. § 1396 et seq., is hereby authorized to provide for payment to hospitals for services provided to eligible recipients in accordance with this chapter. (e) The executive office shall comply with all public notice requirements necessary to implement these rate changes. (f) As a condition of participation in the DRG methodology for payment of hospital services, every hospital shall submit year-end settlement reports to the executive office within one year from the close of a hospital’s fiscal year. Should a participating hospital fail to timely submit a year-end settlement report as required by this section, the executive office shall withhold financial-cycle payments due by any state agency with respect to this hospital by not more than ten percent (10%) until the report is submitted. For hospital fiscal year 2010 and all subsequent fiscal years, hospitals will not be required to submit year-end settlement reports on payments for outpatient services. For hospital fiscal year 2011 and all subsequent fiscal years, hospitals will not be required to submit year-end settlement reports on claims for hospital inpatient services. Further, for hospital fiscal year 2010, hospital inpatient claims subject to settlement shall include only those claims received between October 1, 2009, and June 30, 2010. (g) The provisions of this section shall be effective upon implementation of the new payment methodology set forth in this section and § 40-8-13.3, which shall in any event be no later than March 30, 2010, at which time the provisions of §§ 40-8-13.2, 27-19-14, 27-19-15, and 27- 19-16 shall be repealed in their entirety. 40-8-19. Rates of payment to nursing facilities. (a) Rate reform. (1) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of title 23, and certified to participate in Title XIX of the Social Security Act for services rendered to Medicaid-eligible residents, shall be reasonable and adequate to meet the costs that must be incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. § 1396a(a)(13). The executive office of health and human services (“executive office”) shall promulgate or modify the principles of reimbursement for nursing facilities in effect as of July 1, 2011, to be consistent with the provisions of this section and Title XIX, 42 U.S.C. § 1396 et seq., of the Social Security Act. (2) The executive office shall review the current methodology for providing Medicaid payments to nursing facilities, including other long-term care services providers, and is authorized to modify the principles of reimbursement to replace the current cost-based methodology rates with rates based on a price-based methodology to be paid to all facilities with recognition of the acuity of patients and the relative Medicaid occupancy, and to include the following elements to be developed by the executive office: (i) A direct-care rate adjusted for resident acuity; (ii) An indirect-care and other direct-care rate comprised of a base per diem for all facilities; (iii) Revision of rates as necessary based on increases in direct and indirect costs beginning October 2024 utilizing data from the most recent finalized year of facility cost report. The per diem rate components deferred in subsections (a)(2)(i) and (a)(2)(ii) of this section shall be adjusted accordingly to reflect changes in direct and indirect care costs since the previous rate review; (iv) Application of a fair-rental value system; (v) Application of a pass-through system; and (vi) Adjustment of rates by the change in a recognized national nursing home inflation index to be applied on October 1 of each year, beginning October 1, 2012. This adjustment will not occur on October 1, 2013, October 1, 2014, or October 1, 2015, but will occur on April 1, 2015. The adjustment of rates will also not occur on October 1, 2017, October 1, 2018, October 1, 2019, and October 2022. Effective July 1, 2018, rates paid to nursing facilities from the rates approved by the Centers for Medicare and Medicaid Services and in effect on October 1, 2017, both fee-for- service and managed care, will be increased by one and one-half percent (1.5%) and further increased by one percent (1%) on October 1, 2018, and further increased by one percent (1%) on 12 October 1, 2019. Effective October 1, 2022, rates paid to nursing facilities from the rates approved by the Centers for Medicare and Medicaid Services and in effect on October 1, 2021, both fee-for- service and managed care, will be increased by three percent (3%). In addition to the annual nursing home inflation index adjustment, there shall be a base rate staffing adjustment of one-half percent (0.5%) on October 1, 2021, one percent (1.0%) on October 1, 2022, and one and one-half percent (1.5%) on October 1, 2023. For the twelve-month (12) period beginning October 1, 2025, rates paid to nursing facilities from the rates approved by the Centers for Medicare and Medicaid Services and in effect on October 1, 2024, both fee-for-service and managed care, will be increased by two and three-tenths percent (2.3%). There shall also be a base rate staffing adjustment of three percent (3%) effective October 1, 2025. Not less than one hundred percent (100%) of this base-rate staffing adjustment shall be expended by each nursing facility to increase compensation, wages, benefits, and related employer costs, for eligible direct-care staff, including the cost of hiring additional eligible direct-care positions, as defined in this subsection (a)(2)(vi). The inflation index shall be applied without regard for the transition factors in subsections (b)(1) and (b)(2). Effective October 1, 2026, rates paid to nursing facilities from the rates approved by the Centers for Medicare and Medicaid Services and in effect on October 1, 2025, both fee-for-service and managed care, shall be increased by two and five-tenths percent (2.5%). For purposes of October 1, 2016, adjustment only, any rate increase that results from application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii) shall be dedicated to increase compensation for direct-care workers in the following manner: Not less than eighty-five percent (85%) of this aggregate amount shall be expended to fund an increase in wages, benefits, or related employer costs of direct-care staff of nursing homes. For purposes of this section, direct-care staff shall include registered nurses (RNs), licensed practical nurses (LPNs), certified nursing assistants (CNAs), certified medical technicians, housekeeping staff, laundry staff, dietary staff, or other similar employees providing direct-care services; provided, however, that this definition of direct-care staff shall not include: (i) RNs and LPNs who are classified as “exempt employees” under the federal Fair Labor Standards Act (29 U.S.C. § 201 et seq.); or (ii) CNAs, certified medical technicians, RNs, or LPNs who are contracted, or subcontracted, through a third-party vendor or staffing agency. By July 31, 2017, nursing facilities shall submit to the secretary, or designee, a certification that they have complied with the provisions of this subsection (a)(2)(vi) with respect to the inflation index applied on October 1, 2016. Any facility that does not comply with the terms of such certification shall be subjected to a clawback, paid by the nursing facility to the state, in the amount of increased reimbursement subject to this provision that was not expended in compliance with that certification. (3) Commencing on October 1, 2021, eighty percent (80%) of any rate increase that results from application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii) of this section shall be dedicated to increase compensation for all eligible direct-care workers in the following manner on 14 October 1, of each year. (i) For purposes of this subsection, compensation increases shall include base salary or hourly wage increases, benefits, other compensation, and associated payroll tax increases for eligible direct-care workers. This application of the inflation index shall apply for Medicaid reimbursement in nursing facilities for both managed care and fee-for-service. For purposes of this subsection, direct-care staff shall include registered nurses (RNs), licensed practical nurses (LPNs), certified nursing assistants (CNAs), certified medication technicians, licensed physical therapists, licensed occupational therapists, licensed speech-language pathologists, mental health workers who are also certified nurse assistants, physical therapist assistants, social workers, or any nurse aides with a valid license, even if it is probationary, housekeeping staff, laundry staff, dietary staff, or other similar employees providing direct-care services; provided, however that this definition of direct-care staff shall not include: (A) RNs and LPNs who are classified as “exempt employees” under the federal Fair Labor Standards Act (29 U.S.C. § 201 et seq.); or (B) CNAs, certified medication technicians, RNs, or LPNs who are contracted or subcontracted through a third-party vendor or staffing agency. (4)(i) By July 31, 2021, and July 31 of each year thereafter, nursing facilities shall submit to the secretary or designee a certification that they have complied with the provisions of subsection (a)(3) of this section with respect to the inflation index applied on October 1. The executive office of health and human services (EOHHS) shall create the certification form nursing facilities must complete with information on how each individual eligible employee’s compensation increased, including information regarding hourly wages prior to the increase and after the compensation increase, hours paid after the compensation increase, and associated increased payroll taxes. A collective bargaining agreement can be used in lieu of the certification form for represented employees. All data reported on the compliance form is subject to review and audit by EOHHS. The audits may include field or desk audits, and facilities may be required to provide additional supporting documents including, but not limited to, payroll records. (ii) Any facility that does not comply with the terms of certification shall be subjected to a clawback and twenty-five percent (25%) penalty of the unspent or impermissibly spent funds, paid by the nursing facility to the state, in the amount of increased reimbursement subject to this provision that was not expended in compliance with that certification. There shall be created within the general fund of the state and housed within the budget of the executive office of health and human services a restricted receipt account entitled “Nursing Facility Rate Adjustment Wage Pass- through Compliance” for the express purpose of recording receipts and expenditures of the aforementioned penalty. Funds deposited into the account shall be used for workforce development and compliance assistance programs. (iii) In any calendar year where no inflationary index is applied, eighty percent (80%) of the base rate staffing adjustment in that calendar year pursuant to subsection (a)(2)(vi) of this section shall be dedicated to increase compensation for all eligible direct-care workers in the manner referenced in subsections (a)(3)(i), (a)(3)(i)(A), and (a)(3)(i)(B) of this section. (b) Transition to full implementation of rate reform. For no less than four (4) years after the initial application of the price-based methodology described in subsection (a)(2) to payment rates, the executive office of health and human services shall implement a transition plan to moderate the impact of the rate reform on individual nursing facilities. The transition shall include the following components: (1) No nursing facility shall receive reimbursement for direct-care costs that is less than the rate of reimbursement for direct-care costs received under the methodology in effect at the time of passage of this act; for the year beginning October 1, 2017, the reimbursement for direct-care costs under this provision will be phased out in twenty-five-percent (25%) increments each year until October 1, 2021, when the reimbursement will no longer be in effect; and (2) No facility shall lose or gain more than five dollars ($5.00) in its total, per diem rate the first year of the transition. An adjustment to the per diem loss or gain may be phased out by twenty- five percent (25%) each year; except, however, for the years beginning October 1, 2015, there shall be no adjustment to the per diem gain or loss, but the phase out shall resume thereafter; and (3) The transition plan and/or period may be modified upon full implementation of facility per diem rate increases for quality of care-related measures. Said modifications shall be submitted in a report to the general assembly at least six (6) months prior to implementation. (4) Notwithstanding any law to the contrary, for the twelve-month (12) period beginning 4 July 1, 2015, Medicaid payment rates for nursing facilities established pursuant to this section shall not exceed ninety-eight percent (98%) of the rates in effect on April 1, 2015. Consistent with the other provisions of this chapter, nothing in this provision shall require the executive office to restore the rates to those in effect on April 1, 2015, at the end of this twelve-month (12) period. SECTION 3. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled "Uncompensated Care" are hereby amended to read as follows: 40-8.3-2. Definitions. As used in this chapter: (1) “Base year” means, for the purpose of calculating a disproportionate share payment for any fiscal year ending after September 30, 202 4 5 , the period from October 1, 202 2 3 , through 14 September 30, 202 3 4 , and for any fiscal year ending after September 30, 202 5 6 , the period from 15 October 1, 202 3 4 , through September 30, 202 4 5 . (2) “Medicaid inpatient utilization rate for a hospital” means a fraction (expressed as a percentage), the numerator of which is the hospital’s number of inpatient days during the base year attributable to patients who were eligible for medical assistance during the base year and the denominator of which is the total number of the hospital’s inpatient days in the base year. (3) “Participating hospital” means any nonpsychiatric hospital that: (i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base year and shall mean the actual facilities and buildings in existence in Rhode Island, licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital conversions) and § 23- 17-6(b) (change in effective control), that provides acute inpatient and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated Medicaid managed care payment rates for a court-approved purchaser that acquires a hospital through receivership, special mastership, or other similar state insolvency proceedings (which court-approved purchaser is issued a hospital license after January 1, 2013), shall be based upon the newly negotiated rates between the court- approved purchaser and the health plan, and the rates shall be effective as of the date that the court- approved purchaser and the health plan execute the initial agreement containing the newly negotiated rate. The rate-setting methodology for inpatient hospital payments and outpatient hospital payments set forth in §§ 40-8-13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases for each annual twelve-month (12) period as of July 1 following the completion of the first full year of the court-approved purchaser’s initial Medicaid managed care contract; (ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%) during the base year; and (iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during the payment year. (4) “Uncompensated-care costs” means, as to any hospital, the sum of: (i) The cost incurred by the hospital during the base year for inpatient or outpatient services attributable to charity care (free care and bad debts) for which the patient has no health insurance or other third-party coverage less payments, if any, received directly from such patients; (ii) The cost incurred by the hospital during the base year for inpatient or outpatient services attributable to Medicaid beneficiaries less any Medicaid reimbursement received therefor; and (iii) the sum of subsections (4)(i) and (4)(ii) of this section shall be offset by the estimated hospital’s commercial equivalent rates state directed payment for the current SFY in which the disproportionate share hospital (DSH) payment is made. The sum of subsections (4)(i), (4)(ii), and (4)(iii) of this section shall be multiplied by the uncompensated care index. (5) “Uncompensated-care index” means the annual percentage increase for hospitals established pursuant to § 27-19-14 [repealed] for each year after the base year, up to and including the payment year; provided, however, that the uncompensated-care index for the payment year ending September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent (5.38%), and that the uncompensated-care index for the payment year ending September 30, 2008, shall be deemed to be five and forty-seven hundredths percent (5.47%), and that the uncompensated-care index for the payment year ending September 30, 2009, shall be deemed to be five and thirty-eight hundredths percent (5.38%), and that the uncompensated-care index for the payment years ending 26 September 30, 2010, September 30, 2011, September 30, 2012, September 30, 2013, September 27 30, 2014, September 30, 2015, September 30, 2016, September 30, 2017, September 30, 2018, 28 September 30, 2019, September 30, 2020, September 30, 2021, September 30, 2022, September 30, 2023, September 30, 2024, September 30, 2025, and September 30, 2026, and September 30, 2027 shall be deemed to be five and thirty hundredths percent (5.30%). 40-8.3-3. Implementation. (a) For federal fiscal year 2024, commencing on October 1, 2023, and ending September 30, 2024, the executive office of health and human services shall submit to the Secretary of the United States Department of Health and Human Services a state plan amendment to the Rhode Island Medicaid DSH Plan to provide: (1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of $14.8 million, shall be allocated by the executive office of health and human services to the Pool D component of the DSH Plan; and (2) That the Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital’s uncompensated-care costs for the base year, inflated by the uncompensated-care index to the total uncompensated-care costs for the base year inflated by the uncompensated-care index for all participating hospitals. The disproportionate share payments shall be made on or before June 30, 2024, and are expressly conditioned upon approval on or before June 23, 2024, by the Secretary of the United States Department of Health and Human Services, or their authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2024 for the disproportionate share payments. (b) (a) For federal fiscal year 2025, commencing on October 1, 2024, and ending on 15 September 30, 2025, the executive office of health and human services shall submit to the Secretary of the United States Department of Health and Human Services a state plan amendment to the Rhode Island Medicaid DSH plan to provide: (1) The creation of Pool C which allots no more than twelve million nine hundred thousand dollars ($12,900,000) to Medicaid eligible government-owned hospitals; (2) That the DSH plan to all participating hospitals, not to exceed an aggregate limit of $27.7 million, shall be allocated by the executive office of health and human services to the Pool C and D components of the DSH plan; (3) That the Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital’s uncompensated-care costs for the base year, inflated by the uncompensated-care index to the total uncompensated-care costs for the base year inflated by the uncompensated-care index of all participating hospitals. The disproportionate share payments shall be made on or before June 30, 2025, and are expressly conditioned upon approval on or before June 23, 2025, by the Secretary of the United States Department of Health and Human Services, or their authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2025 for the disproportionate share payments; and (4) That the Pool C allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital’s uncompensated-care costs for the base year, inflated by the uncompensated-care index to the total uncompensated-care cost for the base year inflated by the uncompensated-care index of all participating hospitals. The disproportionate share payments shall be made on or before June 30, 2025, and are expressly conditioned upon approval on or before June 23, 2025, by the Secretary of the United States Department of Health and Human Services, or their authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2025 for the disproportionate share payments. (c) (b) For federal fiscal year 2026, commencing on October 1, 2025, and ending on 8 September 30, 2026, the executive office of health and human services shall submit to the Secretary of the United States Department of Health and Human Services a state plan amendment to the Rhode Island Medicaid DSH plan to provide: (1) That the DSH plan to all participating hospitals, not to exceed an aggregate limit of $13.9 million, shall be allocated by the executive office of health and human services to the Pool C and D components of the DSH plan. Pool C shall not exceed an aggregate limit of $12.9 million. Pool D shall not exceed an aggregate limit of $1.0 million; (2) That the Pool C allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital’s uncompensated-care costs for the base year, inflated by the uncompensated-care index to the total uncompensated-care cost for the base year inflated by the uncompensated-care index of all participating hospitals. The disproportionate share payments shall be made on or before June 30, 2026, and are expressly conditioned upon approval on or before June 23, 2026, by the Secretary of the United States Department of Health and Human Services, or their authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2026 for the disproportionate share payments; and (3) That the Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital’s uncompensated-care costs for the base year, inflated by the uncompensated-care index to the total uncompensated-care costs for the base year inflated by the uncompensated-care index of all participating hospitals. The disproportionate share payments shall be made on or before June 30, 2026, and are expressly conditioned upon approval on or before June 23, 2026, by the Secretary of the United States Department of Health and Human Services, or their authorized representative, of all Medicaid state plan amendments necessary to secure for the state the benefit of federal financial participation in federal fiscal year 2026 for the disproportionate share payments. (c) For federal fiscal year 2027, commencing on October 1, 2026, and ending on September 30, 2027, the DSH plan for all participating hospitals shall not exceed an aggregate limit of $23.9 million and shall be allocated by the executive office of health and human services to the Pool C and D components of the DSH plan. The Pool C component of the DSH plan shall not exceed an aggregate limit of $12.9 million. The Pool D component of the DSH plan shall not exceed an aggregate limit of $11.0 million. (1) The Pool C allotment shall be distributed among the participating hospitals in direct proportion to each individual participating hospital’s uncompensated-care costs for the base year, inflated by the uncompensated-care index as described in §40-8.3-2(5). The DSH payments shall be made on or before June 30, 2027; and, (2) The Pool D allotment shall be distributed among the participating hospitals in direct proportion to the individual participating hospital’s uncompensated-care costs for the base year, inflated by the uncompensated-care index as described in §40-8.3-2(5). The disproportionate share payments shall be made on or before June 30, 2027. (d) No provision is made pursuant to this chapter for disproportionate-share hospital payments to participating hospitals for uncompensated-care costs related to graduate medical education programs. (e) The executive office of health and human services is directed, on at least a monthly basis, to collect patient-level uninsured information, including, but not limited to, demographics, services rendered, and reason for uninsured status from all hospitals licensed in Rhode Island. 19 (f) [Deleted by P.L. 2019, ch. 88, art. 13, § 6.] SECTION 4. Section 42-7.2-5 of the General Laws in Chapter 42-7.2 entitled "Office of Health and Human Services” is hereby amended to read as follows: 42-7.2-5. Duties of the secretary. The secretary shall be subject to the direction and supervision of the governor for the oversight, coordination, and cohesive direction of state-administered health and human services and in ensuring the laws are faithfully executed, notwithstanding any law to the contrary. In this capacity, the secretary of the executive office of health and human services (EOHHS) shall be authorized to: (1) Coordinate the administration and financing of healthcare benefits, human services, and programs including those authorized by the state’s Medicaid section 1115 demonstration waiver and, as applicable, the Medicaid state plan under Title XIX of the U.S. Social Security Act. However, nothing in this section shall be construed as transferring to the secretary the powers, duties, or functions conferred upon the departments by Rhode Island public and general laws for the administration of federal/state programs financed in whole or in part with Medicaid funds or the administrative responsibility for the preparation and submission of any state plans, state plan amendments, or authorized federal waiver applications, once approved by the secretary. (2) Serve as the governor’s chief advisor and liaison to federal policymakers on Medicaid reform issues as well as the principal point of contact in the state on any such related matters. (3)(i) Review and ensure the coordination of the state’s Medicaid section 1115 demonstration waiver requests and renewals as well as any initiatives and proposals requiring amendments to the Medicaid state plan or formal amendment changes, as described in the special terms and conditions of the state’s Medicaid section 1115 demonstration waiver with the potential to affect the scope, amount, or duration of publicly funded healthcare services, provider payments or reimbursements, or access to or the availability of benefits and services as provided by Rhode Island general and public laws. The secretary shall consider whether any such changes are legally and fiscally sound and consistent with the state’s policy and budget priorities. The secretary shall also assess whether a proposed change is capable of obtaining the necessary approvals from federal officials and achieving the expected positive consumer outcomes. Department directors shall, within the timelines specified, provide any information and resources the secretary deems necessary in order to perform the reviews authorized in this section. (ii) Direct the development and implementation of any Medicaid policies, procedures, or systems that may be required to assure successful operation of the state’s health and human services integrated eligibility system and coordination with HealthSource RI, the state’s health insurance marketplace. (iii) Beginning in 2015, conduct on a biennial basis a comprehensive review of the Medicaid eligibility criteria for one or more of the populations covered under the state plan or a waiver to ensure consistency with federal and state laws and policies, coordinate and align systems, and identify areas for improving quality assurance, fair and equitable access to services, and opportunities for additional financial participation. (iv) Implement service organization and delivery reforms that facilitate service integration, increase value, and improve quality and health outcomes. (4) Beginning in 2020, prepare and submit to the governor, the chairpersons of the house and senate finance committees, the caseload estimating conference, and to the joint legislative committee for health-care oversight, by no later than September 15 of each year, a comprehensive overview of all Medicaid expenditures outcomes, administrative costs, and utilization rates. The overview shall include, but not be limited to, the following information: (i) Expenditures under Titles XIX and XXI of the Social Security Act, as amended; (ii) Expenditures, outcomes, and utilization rates by population and sub-population served (e.g., families with children, persons with disabilities, children in foster care, children receiving adoption assistance, adults ages nineteen (19) to sixty-four (64), and elders); (iii) Expenditures, outcomes, and utilization rates by each state department or other municipal or public entity receiving federal reimbursement under Titles XIX and XXI of the Social Security Act, as amended; (iv) Expenditures, outcomes, and utilization rates by type of service and/or service provider; (v) Expenditures by mandatory population receiving mandatory services and, reported separately, optional services, as well as optional populations receiving mandatory services and, reported separately, optional services for each state agency receiving Title XIX and XXI funds; and (vi) Information submitted to the Centers for Medicare & Medicaid Services for the mandatory annual state reporting of the Core Set of Children’s Health Care Quality Measures for Medicaid and Children’s Health Insurance Program, behavioral health measures on the Core Set of Adult Health Care Quality Measures for Medicaid and the Core Sets of Health Home Quality Measures for Medicaid to ensure compliance with the Bipartisan Budget Act of 2018, Pub. L. No. 115-123. The directors of the departments, as well as local governments and school departments, shall assist and cooperate with the secretary in fulfilling this responsibility by providing whatever resources, information, and support shall be necessary. (5) Resolve administrative, jurisdictional, operational, program, or policy conflicts among departments and their executive staffs and make necessary recommendations to the governor. (6) Ensure continued progress toward improving the quality, the economy, the accountability, and the efficiency of state-administered health and human services. In this capacity, the secretary shall: (i) Direct implementation of reforms in the human resources practices of the executive office and the departments that streamline and upgrade services, achieve greater economies of scale and establish the coordinated system of the staff education, cross-training, and career development services necessary to recruit and retain a highly-skilled, responsive, and engaged health and human services workforce; (ii) Encourage EOHHS-wide consumer-centered approaches to service design and delivery that expand their capacity to respond efficiently and responsibly to the diverse and changing needs of the people and communities they serve; (iii) Develop all opportunities to maximize resources by leveraging the state’s purchasing power, centralizing fiscal service functions related to budget, finance, and procurement, centralizing communication, policy analysis and planning, and information systems and data management, pursuing alternative funding sources through grants, awards, and partnerships and securing all available federal financial participation for programs and services provided EOHHS- wide; (iv) Improve the coordination and efficiency of health and human services legal functions by centralizing adjudicative and legal services and overseeing their timely and judicious administration; (v) Facilitate the rebalancing of the long-term system by creating an assessment and coordination organization or unit for the expressed purpose of developing and implementing procedures EOHHS-wide that ensure that the appropriate publicly funded health services are provided at the right time and in the most appropriate and least restrictive setting; (vi) Strengthen health and human services program integrity, quality control and collections, and recovery activities by consolidating functions within the office in a single unit that ensures all affected parties pay their fair share of the cost of services and are aware of alternative financing; (vii) Assure protective services are available to vulnerable elders and adults with developmental and other disabilities by reorganizing existing services, establishing new services where gaps exist, and centralizing administrative responsibility for oversight of all related initiatives and programs. (7) Prepare and integrate comprehensive budgets for the health and human services departments and any other functions and duties assigned to the office. The budgets shall be submitted to the state budget office by the secretary, for consideration by the governor, on behalf of the state’s health and human services agencies in accordance with the provisions set forth in § 35-3-4. (8) Utilize objective data to evaluate health and human services policy goals, resource use and outcome evaluation and to perform short and long-term policy planning and development. (9) Establish an integrated approach to interdepartmental information and data management that complements and furthers the goals of the unified health infrastructure project initiative and that will facilitate the transition to a consumer-centered integrated system of state- administered health and human services. (10) At the direction of the governor or the general assembly, conduct independent reviews of state-administered health and human services programs, policies, and related agency actions and activities and assist the department directors in identifying strategies to address any issues or areas of concern that may emerge thereof. The department directors shall provide any information and assistance deemed necessary by the secretary when undertaking such independent reviews. (11) Provide regular and timely reports to the governor and make recommendations with respect to the state’s health and human services agenda. (12) Employ such personnel and contract for such consulting services as may be required to perform the powers and duties lawfully conferred upon the secretary. (13) Assume responsibility for complying with the provisions of any general or public law or regulation related to the disclosure, confidentiality, and privacy of any information or records, in the possession or under the control of the executive office or the departments assigned to the executive office, that may be developed or acquired or transferred at the direction of the governor or the secretary for purposes directly connected with the secretary’s duties set forth herein. (14) Hold the director of each health and human services department accountable for their administrative, fiscal, and program actions in the conduct of the respective powers and duties of their agencies. (15) Identify opportunities for inclusion with the EOHHS’ October 1, 2023, budget submission, to remove fixed eligibility thresholds for programs under its purview by establishing sliding scale decreases in benefits commensurate with income increases up to four hundred fifty percent (450%) of the federal poverty level. These shall include but not be limited to, medical assistance, childcare assistance, and food assistance. (16) Ensure that insurers minimize administrative burdens on providers that may delay medically necessary care, including requiring that insurers do not impose a prior authorization requirement for any admission, item, service, treatment, or procedure ordered by an in-network primary care provider. Provided, the prohibition shall not be construed to prohibit prior authorization requirements for prescription drugs. Provided further, that as used in this subsection (16) of this section, the terms “insurer,” “primary care provider,” and “prior authorization” means the same as those terms are defined in § 27-18.9-2. (17) The secretary shall convene, in consultation with the governor, an advisory working group to assist in the review and analysis of potential impacts of any adopted federal actions related to Medicaid programs. The working group shall develop options for administrative action or general assembly consideration that may be needed to address any federal funding changes that impact Rhode Island’s Medicaid programs. (i) The advisory working group may include, but not be limited to, the secretary of health and human services, director of management and budget, and designees from the following: state agencies, businesses, healthcare, public sector unions, and advocates. (ii) As soon as practicable after the enactment federal budget for fiscal year 2026, but no later than October 31, 2025, the advisory working group shall forward a report to the governor, speaker of the house, and president of the senate containing the findings, recommendations and options for consideration to become compliant with federal changes prior to the governor’s budget submission pursuant to § 35-3-7. (18) The secretary shall implement, in coordination with the health insurance commissioner, the Achieving Healthcare Efficiency through Accountable Design (AHEAD) Model Grant Program and produce a report to the governor and the general assembly outlining the program’s activities. The report, due no later than October 31, 2026, and annually thereafter by 8 October 31 for the duration of the state’s participation in the grant, should address, at minimum: (i) a description of activities and funding uses during the grant year; (ii) the legislative authority, including budgetary authority, required to implement changes to the Rhode Island Medical Assistance program; (ii) stakeholder interest and participation in the model; and (iv) overall long-term value of implementing the alternative payment models required by the AHEAD model. SECTION 5. Chapter 42-72 of the General Laws entitled “Department of Children, Youth and Families” is hereby amended by adding thereto the following section: 42-72-37. Family Care Community Partnerships. (a) As used in this subsection, “family care community partnership” (FCCP) means a specific, community-based prevention service that an agency or entity provides to children and families through a Medicaid certification, department license, or contract with the department. (b) There are hereby established five (5) FCCP catchment regions to serve residents of a specific area within the state, as follows: (1) West Urban Core: the cities of Providence and Cranston; (2) East Urban Core: the cities of East Providence, Central Falls, and Pawtucket; (3) East Bay: the towns of Barrington, Bristol, Jamestown, Little Compton, Middletown, Portsmouth, Tiverton, and Warren, and the city of Newport; (4) Washington and Kent Counties: the towns of Charlestown, Coventry, East Greenwich, Exeter, Hopkinton, Narragansett, New Shoreham, North Kingstown, Richmond, South Kingstown, West Greenwich, West Warwick, and Westerly, and the city of Warwick; and (5) Northern Rhode Island: the towns of Burrillville, Cumberland, Foster, Glocester, Johnston, Lincoln, North Providence, North Smithfield, Scituate, Smithfield, and the city of Woonsocket. (c) Exactly one FCCP shall be permitted to operate in each region set forth in subsection (b) of this section. SECTION 6. Rhode Island Medicaid Reform Act of 2008 Resolution. WHEREAS, the General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode Island Medicaid Reform Act of 2008”; and WHEREAS, a legislative enactment is required pursuant to Rhode Island General Laws section 42-12.4-1, et seq. ; and WHEREAS, Rhode Island General Laws section 42-7.2-5(3)(i) provides that the secretary of the executive office of health and human services is responsible for the review and coordination of any Medicaid section 1115 demonstration waiver requests and renewals as well as any initiatives and proposals requiring amendments to the Medicaid state plan or category II or III changes as described in the demonstration, “with potential to affect the scope, amount, or duration of publicly- funded health care services, provider payments or reimbursements, or access to or the availability of benefits and services provided by Rhode Island general and public laws”; and WHEREAS, in pursuit of a more cost-effective consumer choice system of care that is fiscally sound and sustainable, the secretary requests legislative approval of the following proposals to amend the demonstration; and WHEREAS, implementation of adjustments may require amendments to the Rhode Island’s Medicaid state plan and/or section 1115 waiver under the terms and conditions of the demonstration. Further, adoption of new or amended rules, regulations and procedures may also be required: (a) Inpatient and Outpatient Hospital Rate Increase Alignment with State Revenue Growth. The executive office of health and human services will pursue and implement any state plan amendments needed to limit rate increases for inpatient and outpatient hospital services in SFY 2027 to the anticipated rate of growth of state tax revenue, 2.5 percent. (b) Nursing Facility Rate Increase Alignment with State Revenue Growth . The executive office of health and human services will pursue and implement any state plan amendments needed to align rate increases for nursing facilities in SFY 2027 to the anticipated rate of growth of state tax revenue, 2.5 percent. (c) Federally Qualified Health Center Rate Increase Alignment with State Revenue Growth . The secretary of the executive office of health and human services will pursue and implement any amendments needed to the Principles of Reimbursement for Federally Qualified Health Centers (FQHC) needed to align rate increases for FQHC services in SFY 2027 to the anticipated rate of growth of state tax revenue, 2.5 percent. (d) Substance Abuse Residential Services Rates. The secretary of the executive office of health and human services will pursue and implement any state plan amendments needed to eliminate annual rate increases for substance abuse residential services. (e) Children’s Services Rate Setting. The secretary of the executive office of health and human services is authorized to pursue and implement any waiver amendments, state plan amendments, and/or changes to the applicable department’s rules, regulations, and procedures required to implement reimbursement rates resulting from the Children s Services Rate Setting project. (f) Provider Reimbursement Rates. The secretary of the executive office of health and human services is authorized to pursue and implement any waiver amendments, state plan amendments, and/or changes to the applicable department’s rules, regulations, and procedures required to implement updates to Medicaid provider reimbursement rates consisting of rate increases limited to the lower amount of one half (1/2) of the increases recommended or one hundred percent (100%) of the Medicare rates identified in the Social and Human Service Programs Review Final Report produced by the office of the health insurance commissioner pursuant to Rhode Island General Laws section 42-14.5-3(t)(2)(x), effective October 1, 2026. (g) Glucagon-like Peptide-1 (GLP-1) Coverage . The secretary of the executive office of health and human services is authorized to pursue and implement any waiver amendments, state plan amendments, and/or changes to the applicable department’s rules, regulations, and procedures required to remove coverage for GLP-1 medications, except if prescribed to treat type 2 diabetes. (h) Federal Financing Opportunities. The executive office of health and human services proposes that it shall review Medicaid requirements and opportunities under the U.S. Patient Protection and Affordable Care Act of 2010 (PPACA) and various other recently enacted federal laws and pursue any changes in the Rhode Island Medicaid program that promote, increase and enhance service quality, access and cost-effectiveness that may require a Medicaid state plan amendment or amendment under the terms and conditions of Rhode Island’s section 1115 waiver, its successor, or any extension thereof. Any such actions by the executive office of health and human services shall not have an adverse impact on beneficiaries or cause there to be an increase in expenditures beyond the amount appropriated for state fiscal year 2027. Now, therefore, be it: RESOLVED, that the General Assembly hereby approves the above-referenced proposals; and be it further; RESOLVED, that the secretary of the executive office of health and human services is authorized to pursue and implement any waiver amendments, state plan amendments, and/or changes to the applicable department’s rules, regulations and procedures approved herein and as authorized by chapter 12.4 of title 42; and be it further; RESOLVED, that this Joint Resolution shall take effect on July 1, 2026. SECTION 7. This article shall take effect upon passage, except section 6 which shall take effect on July 1, 2026. 4 ARTICLE 9 RELATING TO LEASES SECTION 1. This article consists of a Joint Resolution that is submitted pursuant to Rhode Island General Laws § 37-6-2, authorizing various lease agreements for office space and operating space. SECTION 2. Rhode Island Department of State (148 West River Street, Providence). WHEREAS, the Rhode Island Department of State currently occupies approximately 12,152 square feet at 148 West River Street in the City of Providence; and WHEREAS, the Rhode Island Department of State currently holds a lease agreement, in full force and effect, with EGMP 146-148 West River LLC for approximately 12,152 square feet of office and customer service space located at 148 West River Street, in the City of Providence; and WHEREAS, the existing lease expires on July 31, 2026, and the Rhode Island Department of State wishes to enter into a new lease agreement for a period of ten (10) years; and WHEREAS, the State of Rhode Island, acting by and through the Department of State attests to the fact that there are no clauses in the lease agreement with EGMP 146-148 West River LLC that would interfere with the Department of State’s lease agreement or use of the facility; and WHEREAS, the leased premises provide a critical location for the offices of the Department of State from which the agency can fulfill its mission; and WHEREAS, the annual fixed rent in the agreement in the current fiscal year, ending June 21 30, 2026 is $256,589.52; and WHEREAS, the annual base rent of the agreement in year one is not to exceed $261,268.00 which will be followed by annual increases of 2.5% in years two (2) through ten (10), with year ten (10) not to exceed $326,287.93; and WHEREAS, the payment of the annual base rent will be made from funds available to the Department of State for the payments of rental and lease costs based on annual appropriations made by the General Assembly; and WHEREAS, the State Properties Committee now respectfully requests the approval of the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement between the Department of State and EGMP 146-148 West River LLC for leased space located at 148 West River Street, Providence; now therefore be it RESOLVED, that this General Assembly of the State of Rhode Island hereby approves the lease agreement, for a term not to exceed ten (10) years and an aggregate base rent not to exceed $2,927,085.15; and it be further RESOLVED, that this Joint Resolution shall take effect upon passage by the General Assembly; and it be further RESOLVED, that the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the Governor, the Secretary of State, the Director of Administration, the State Budget Officer, and the Chair of the State Properties Committee. SECTION 3. Rhode Island Department of Environmental Management , (235 Promenade Street, Providence). WHEREAS, the Rhode Island Department of Environmental Management currently occupies 126,184 square feet at 235 Promenade Street in the City of Providence; and WHEREAS, the Rhode Island Department of Environmental Management currently holds a lease agreement in full force and effect, with Foundry Parcel Fifteen Associates, LLC for 126,184 square feet of office and customer service space located at 235 Promenade Street, in the City of Providence; and WHEREAS, the existing lease expires on July 7, 2026, and the Rhode Island Department of Environmental Management wishes to enter into a new lease agreement for a period of ten (10) years; and WHEREAS, the Department of Administration and Rhode Island Department of Environmental Management received and reviewed proposals for office space that would meet the Department of Environmental Management’s needs; and WHEREAS, upon completing an evaluation of the submitted lease proposals, the Rhode Island Department of Environmental Management wishes to enter into a ten-year lease agreement with Foundry Parcel Fifteen Associates, LLC for 115,328 square feet of office space located at 235 Promenade Street in the city of Providence; and WHEREAS, the State of Rhode Island, acting by and through the Rhode Island Department of Environmental Management attests to the fact that there are no clauses in the lease agreement with Foundry Parcel Fifteen Associates, LLC that would interfere with the Rhode Island Department of Environmental Management’s lease agreement or use of the facility; and WHEREAS, the leased premises provide a critical location for the offices of the Rhode Island Department of Environmental Management from which the agency can fulfill its mission; and WHEREAS, the annual fixed rent in the agreement in the current fiscal year, ending June 32 30, 2026 is $2,586,772; and WHEREAS, the annual fixed rent of the agreement in each of the first five (5) years of the renewal term will not exceed $2,600,000 and shall not exceed $2,800,000 in each of the remaining years of the renewal term (or in each of years six (6) through ten (10) of the renewal term); and WHEREAS, the payment of the annual fixed rent will be made from funds available to the Rhode Island Department of Environmental Management for the payments of rental and lease costs based on annual appropriations made by the General Assembly; and WHEREAS, the State Properties Committee now respectfully requests the approval of the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement between the Rhode Island Department of Environmental Management and Foundry Parcel Fifteen Associates, LLC for lease space located at 235 Promenade Street, Providence; now therefore be it RESOLVED, that this General Assembly of the State of Rhode Island hereby approves the lease agreement, for a term not to exceed ten (10) years and an aggregate fixed rent not to exceed $27,000,000; and it be further RESOLVED, that this Joint Resolution shall take effect upon passage by the General Assembly; and it be further RESOLVED, that the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the Governor, the Secretary of State, the Director of the Rhode Island Department of Environmental Management, the Director of Administration, the State Budget Officer, and the Chair of the State Properties Committee. SECTION 4. State of Rhode Island Office of the Public Defender (160 Pine Street, Providence). WHEREAS, the Office of the Public Defender currently occupies approximately 19,777 square feet at 160 Pine Street in the City of Providence; and WHEREAS, the Office of the Public Defender currently holds a lease agreement, in full force and effect, with PK Lamb Properties, Inc. for approximately 19,777 square feet of office space located at 160 Pine Street, in the City of Providence; and WHEREAS, the existing lease expires on July 31, 2026, and the Office of the Public Defender wishes to renew this lease for an additional five-year term; and WHEREAS, the State of Rhode Island, acting by and through the Office of the Public Defender attests to the fact that there are no clauses in the lease agreement with PK Lamb Properties, Inc. that would interfere with the Office of the Public Defender’s lease agreement or use of the facility; and WHEREAS, the leased premises provide a critical location for the Office of the Public Defender from which the agency can fulfill its mission; and WHEREAS, the annual fixed rent in the agreement in the current fiscal year, ending June 34 30, 2026 is $393,166.76; and WHEREAS, the annual fixed rent of the agreement in the five (5) years of the renewal term will not exceed $435,093.96; and WHEREAS, the payment of the annual fixed rent will be made from funds available to the Office of the Public Defender for the payments of rental and lease costs based on annual appropriations made by the General Assembly; and WHEREAS, the State Properties Committee now respectfully requests the approval of the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement between the Office of the Public Defender and PK Lamb Properties, Inc. for leased space located at 160 Pine Street, Providence; now therefore be it RESOLVED, that this General Assembly of the State of Rhode Island hereby approves the lease agreement, for a term not to exceed five (5) years and an aggregate fixed rent not to exceed $2,175,469.80; and it be further RESOLVED, that this Joint Resolution shall take effect upon passage by the General Assembly; and it be further RESOLVED, that the Secretary of State is hereby authorized and directed to transmit duly certified copies of this resolution to the Governor, the Secretary of State, the Public Defender, the Director of Administration, the State Budget Officer, and the Chair of the State Properties Committee. SECTION 5. This article shall take effect upon passage. ARTICLE 10 RELATING TO HEALTH AND HUMAN SERVICES SECTION 1. Section 40.1-1-13 of the General Laws in Chapter 40.1-1 entitled “Department of Behavioral Healthcare, Developmental Disabilities and Hospitals” is hereby amended to read as follows: 40.1-1-13. Powers and duties of the office. Notwithstanding any provision of the Rhode Island general laws to the contrary, the department of behavioral healthcare, developmental disabilities and hospitals shall have the following powers and duties: (1) To establish and promulgate the overall plans, policies, objectives, and priorities for state substance abuse education, prevention, and treatment; provided, however, that the director shall obtain and consider input from all interested state departments and agencies prior to the promulgation of any such plans or policies; (2) Evaluate and monitor all state grants and contracts to local substance abuse service providers; (3) Develop, provide for, and coordinate the implementation of a comprehensive state plan for substance abuse education, prevention, and treatment; (4) Ensure the collection, analysis, and dissemination of information for planning and evaluation of substance abuse services; (5) Provide support, guidance, and technical assistance to individuals, local governments, community service providers, public and private organizations in their substance abuse education, prevention, and treatment activities; (6) Confer with all interested department directors to coordinate the administration of state programs and policies that directly affect substance abuse treatment and prevention; (7) Seek and receive funds from the federal government and private sources in order to further the purposes of this chapter; (8) To act in conjunction with the executive office of health and human services as the state’s co-designated agency (42 U.S.C. § 300x-30(a)) for administering federal aid and for the purposes of the calculation of the expenditures relative to the substance abuse block grant and federal funding maintenance of effort. The department of behavioral healthcare, developmental disabilities and hospitals, as the state’s substance abuse and mental health authority, will have the sole responsibility for the planning, policy and implementation efforts as it relates to the requirements set forth in pertinent substance abuse laws and regulations including 42 U.S.C. § 300x-21 et seq.; (9) Propose, review, and/or approve, as appropriate, proposals, policies, or plans involving insurance and managed care systems for substance abuse services in Rhode Island; (10) To enter into, in compliance with the provisions of chapter 2 of title 37, contractual relationships and memoranda of agreement as necessary for the purposes of this chapter; (11) To license facilities and programs for the care and treatment of substance abusers and for the prevention of substance abuse, and provide the list of licensed chemical dependency professionals (LCDP) and licensed chemical dependency clinical supervisors (LCDCS) (licensed by the department of health pursuant to chapter 69 of title 5) for use by state agencies including, but not limited to, the adjudication office of the department of transportation, the district court and superior court and the division of probation and parole for referral of individuals requiring substance use disorder treatment; (12) To promulgate rules and regulations necessary to carry out the requirements of this chapter; (13) Perform other acts and exercise any other powers necessary or convenient to carry out the intent and purposes of this chapter; (14) To exercise the authority and responsibilities relating to education, prevention, and treatment of substance abuse, as contained in, but not limited to, the following chapters: chapters 1.10, 10.1, and 28.2 of title 23; chapters 21.2 and 21.3 of title 16; chapter 50.1 of title 42 [repealed]; chapter 109 of title 42; chapter 69 of title 5; and § 35-4-18; (15) To establish a Medicare Part D restricted-receipt account in the hospitals and community rehabilitation services program and the Rhode Island state psychiatric hospital program to receive and expend Medicare Part D reimbursements from pharmacy benefit providers consistent with the purposes of this chapter; (16) To establish a RICLAS group home operations restricted-receipt account in the services for the developmentally disabled program to receive and expend rental income from RICLAS group clients for group home-related expenditures, including food, utilities, community activities, and the maintenance of group homes; (17) To establish a non-Medicaid, third-party payor restricted-receipt account in the hospitals and community rehabilitation services program to receive and expend reimbursement from non-Medicaid, third-party payors to fund hospital patient services that are not Medicaid eligible; and (18) To certify any and all recovery housing facilities directly, or through a contracted entity, as defined by department guidelines, which includes adherence to using National Alliance for Recovery Residences (NARR) standards. In accordance with a schedule to be determined by the department, all referrals from state agencies or state-funded facilities shall be to certified houses, and only certified recovery housing facilities shall be eligible to receive state funding to deliver recovery housing services. As of January 1, 2027, all recovery housing facilities shall be registered with the department and shall adhere to the NARR certification process. (19) To establish, operate, and/or designate a RI 9-8-8 Suicide & Crisis Lifeline center or centers to provide telephone, text and chat crisis intervention services and crisis care coordination to individuals accessing the RI 9-8-8 Suicide & Crisis Lifeline. SECTION 2. Title 40.1 of the General Laws entitled “Behavioral Healthcare, Development Disabilities and Hospitals” is hereby amended by adding thereto the following chapter: CHAPTER 8.6 RHODE ISLAND 9-8-8 SUICIDE & CRISIS LIFELINE 13 40.1-8.6-1. Definitions. As used in this chapter: (1) “9-8-8 Suicide & Crisis Lifeline” or “lifeline" means the national network system operated by the National Suicide Prevention Lifeline ("NSPL") or its successor entity, within which the department-approved or department-operated RI 9-8-8 Suicide & Crisis Lifeline Center participates. (2) “Department” means the department of behavioral healthcare, developmental disabilities and hospitals. (3) “Director” means the director of the department of behavioral healthcare, developmental disabilities and hospitals. (4) "National Suicide Prevention Lifeline" ("NSPL") means the national network of local crisis centers providing free and confidential emotional support to people in suicidal crisis or emotional distress twenty-four (24) hours a day, seven (7) days a week. Membership as an NSPL center requires nationally recognized certification which includes evidence-based training for all staff and volunteers in the management of NSPL calls. (5) "Rhode Island (RI) 9-8-8 state administrator” means the administrator designated by the director of the department to manage the locally operated and funded center within the national network of the 9-8-8 Suicide & Crisis Lifeline within Rhode Island. (6) “Rhode Island (RI) 9-8-8 Suicide & Crisis Lifeline Center” or "lifeline center" means a department-approved or department-operated center that participates in the National Suicide Prevention Lifeline Network and responds to statewide or regional 9-8-8 contacts that is operated by or under contract with the department. 40.1-8.6-2. Behavioral health crisis services system established. (a) The director is hereby authorized to establish, operate, promulgate regulations with regard to, and/or designate a RI 9-8-8 Suicide & Crisis Lifeline center or centers to provide telephone, text and chat crisis intervention services and crisis care coordination to individuals accessing the RI 9-8-8 Suicide & Crisis Lifeline twenty-four (24) hours a day, seven (7) days a week. (b) The director shall have the authority to provide general oversight of the RI 9-8-8 Suicide & Crisis Lifeline Center(s) established by this chapter. (c) The RI 9-8-8 Suicide & Crisis Lifeline center(s) shall have an active agreement with the administrator of the National Suicide Prevention Lifeline ("NSPL") maintained by SAMHSA, or any successor entity, for participation within the network. (d) The designated RI 9-8-8 Suicide & Crisis Lifeline center(s) shall meet SAMHSA and NSPL or any successor entity’s requirements and best practices guidelines for operational and clinical standards. (e) The designated RI 9-8-8 Suicide & Crisis Lifeline center(s) shall provide and report data and participate in evaluations and related quality improvement activities as required by the 9- 8-8 state administrator. The department shall provide the department of children, youth, and families with data regarding utilization of RI 9-8-8 services by children, youth, and their families, consistent with NSPL requirements and state and federal confidentiality and privacy laws and regulations. (f) The designated RI 9-8-8 Suicide & Crisis Lifeline center(s) shall make referrals, consistent with guidance and policies established by the NSPL or any successor entity, to follow- up services for individuals who access the RI 9-8-8 Suicide & Crisis Lifeline. (g) The director shall consult with the director of the department of children, youth, and families prior to promulgating rules and regulations specific to RI 9-8-8 services for children, youth, and their families. (h) Nothing in § 40.1-8.6-2, § 40.1-8.6-3, or § 40.1-8.6-4 shall be construed to restrict the authority of the department of children, youth and family (DCYF) pursuant to chapters 72 and 72.1 of title 42. 40.1-8.6-3. Funding of the 988 Suicide & Crisis Lifeline. (a) The director shall have the authority to expend any and all funds allocated to support the operations of the RI 9-8-8 Suicide & Crisis Lifeline. 40.1-8.6-4. Implementation. (a) The director shall designate the RI 9-8-8 state administrator. The RI 9-8-8 state administrator shall be an employee of the department and shall serve at the pleasure of the director, or shall be a contractor who has a contract with the department and shall serve for the period designated in the contract and in accordance with the terms of such contract. (b) All state agencies and/or departments shall provide to the department any and all data and other information necessary for the department to comply with federal and/or state reporting requirements with respect to the establishment and/or operation of the RI 9-8-8 Suicide & Crisis Lifeline. SECTION 3. Sections 42-160-3 and 42-160-5 of the General Laws in Chapter 42-160 entitled "Rhode Island Pay for Success Act" are hereby amended to read as follows: 42-160-3. Annual reporting. The executive office, in collaboration with the Rhode Island Coalition to End Homelessness or other qualified organization as determined by the executive office , shall provide yearly progress reports to the general assembly beginning no later than January 30, 2022, and annually thereafter until January 30, 2027 2028 . These reports will include recommendations on a proposed structure for entering into pay for success contracts, for administering the program, and for any and all matters related thereto that the executive office deems necessary to administer future pay for success projects at the conclusion of the pilot program in 2026 2027 . As a condition of this project, HUD requires that a third party conduct a transparent and rigorous evaluation of the intervention to determine whether the outcomes have indeed achieved success. The evaluation results will be reported yearly to the governor and general assembly. 42-160-5. Pilot program established. There is established a five six (6) -year (5) pay-for-success pilot program to be administered by the Rhode Island executive office of health and human services. The pilot will follow the proposal outlined in the 2016 pay-for-success grant proposal to HUD and 2017 feasibility study. The pay-for-success project will provide a person-centered housing and supportive services intervention (PSH) for one hundred twenty-five (125) persons in Rhode Island experiencing homelessness who are high utilizers of the healthcare and justice systems. The pilot program will leverage eight hundred seventy-five thousand dollars ($875,000) of HUD/DOJ grant funds. Contract agreements with the executive office of health and human services pursuant to this chapter shall not exceed one million five hundred thousand dollars ($1,500,000) per fiscal year or six million dollars ($6,000,000) in the aggregate over the five (5) six (6) years of the pilot program, as determined by the department; provided, no agreements shall be entered by the department after July 1, 2026 2027 , without further authorization by the general assembly. SECTION 4. Section 42-166-2 of the General Laws in Chapter 42-166 entitled "The Ladders to Licensure Program" is hereby amended to read as follows: 42-166-2. Use of appropriated funds. Any appropriated funds shall be used to provide grants to three (3) or four (4) at least two (2) grantee partnerships, consisting of multiple private sector health and human services employer organizations and education grantee partnerships (with at least one focused on behavioral health and one focused on nursing). Employers will be required to contribute a twenty-five percent (25%) in-kind match and a ten percent (10%) cash match. SECTION 5. This act shall take effect upon passage. ARTICLE 11 RELATING TO AFFORDABILITY SECTION 1. Title 27 of the General Laws entitled “Insurance” is hereby amended by adding thereto the following chapter: CHAPTER 84 PHARMACY BENEFIT MANAGER TRANSPARENCY REPORTING AND STUDY ACT 27-84-1. Short title. This chapter shall be known and may be cited as the “Pharmacy Benefit Manager Transparency Reporting and Study Act.” 27-84-2. Definitions. As used in this chapter, the following terms shall mean: (1) “Aggregate Retained Rebate Percentage” means the percentage of all rebates received from a manufacturer or other entity to a Pharmacy Benefit Manager for prescription drug utilization which is not passed on to the Pharmacy Benefit Manager’s health carrier clients. The percentage shall be calculated for each health carrier for rebates in the prior calendar years as follows: a) the sum total dollar amount of rebates received from all pharmaceutical manufacturers for all utilization of covered persons of a health carrier that was not passed through to the health carrier b) divided by the sum total dollar amount of all rebates received from all pharmaceutical manufacturers for covered persons of a health carrier. (2) “Health Benefit Plan” means a policy, contract, certificate or agreement offered or issued by a health carrier to provide, deliver, arrange for, pay for or reimburse any of the costs of healthcare services. (3) “Health Carrier” means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the health insurance commissioner, that contracts or offers to contract, or enters into an agreement to provide, deliver, arrange for, pay for, or reimburse any of the cost of health care services, including a health insurance company, a health maintenance organization, a hospital and health services corporation, or any other entity providing a plan of health insurance, health benefits or health care services. (4) “Pharmacy Benefit Manager” means a person, business, or other entity that, pursuant to a contract or under an employment relationship with a health carrier, a self-insurance plan, or other third-party payer, either directly or through an intermediary, manages the prescription drug coverage provided by the health carrier, self-insurance plan, or other third-party payer including, but not limited to, the processing and payment of claims for prescription drugs, the performance of drug utilization review, the processing of drug prior authorization requests, the adjudication of appeals or grievances related to prescription drug coverage contracting with network pharmacies, and controlling the cost of covered prescription drugs. (5) “Rebates” means all price concessions paid by a manufacturer to a Pharmacy Benefit Manager or health carrier, including rebates, discounts, and other price concessions that are based on actual or estimated utilization of a prescription drug. Rebates also include price concessions based on the effectiveness of a drug as in a value-based or performance-based contract. (6) “Spread Pricing” means any amount charged or claimed by a Pharmacy Benefit Manager to a health carrier that is in excess of the amount the Pharmacy Benefit Manager paid to the pharmacy that filled the prescription. (7) “Trade Secrets” has the meaning found in § 6-41-1(4). 27-84-3. Pharmacy Benefit Manager Transparency. (a) Beginning March 1, 2027, and annually thereafter, each Pharmacy Benefit Manager shall submit a transparency report containing data from the prior calendar year to the health insurance commissioner. The transparency report shall contain the following information: (1) The aggregate amount of all rebates that the Pharmacy Benefit Manager received from all pharmaceutical manufacturers for all health carrier clients and for each health carrier client; (2) The aggregate administrative fees that the Pharmacy Benefit Manager received from all manufacturers for all health carrier clients and for each health carrier client; (3) The aggregate retained rebates that the Pharmacy Benefit Manager received from all pharmaceutical manufacturers and did not pass through to health carriers; (4) The aggregate retained rebate percentage as defined in section 27-84-2; (5) The highest, lowest, and mean aggregate retained rebate percentage for all health carrier clients and for each health carrier client; and (6) A response to a set of standard questions developed by the health insurance commissioner regarding business practices, including but not limited to, rebate pass through practices, spread pricing, pharmacy network development, and utilization management. (b) A Pharmacy Benefit Manager providing information under this section shall provide complete information to the health insurance commissioner but may request that the health insurance commissioner designate certain material as a trade secret with a factual and legal analysis supporting such request. Disclosure, however, may be ordered by a court of this State for good cause shown or made in a court filing. (c) Within sixty (60) days of receipt of complete reports, the health insurance commissioner shall publish the transparency report of each Pharmacy Benefit Manager on the agency’s website in a form and manner that does not violate State trade secrets law. (d) The health insurance commissioner may impose administrative penalties in accordance with § 42-14-16 for violations of this section. 27-84-4. Pharmacy Benefit Manager Study. (a) On or before October 1, 2027, the health insurance commissioner shall provide the governor and the general assembly with an analysis of the reporting information furnished pursuant to § 27-84-3. The report shall also include a review of the role of Pharmacy Benefit Managers in the structure and cost of health insurance, a review of approaches to Pharmacy Benefit Manager regulation in other states, and any recommended actions to improve the oversight of Pharmacy Benefit Managers doing business in Rhode Island. (b) The health insurance commissioner may contract with actuaries and other subject matter experts to assist the commissioner in conducting the study required under this section. The actuaries and other experts shall serve under the direction of the health insurance commissioner. Health insurance companies doing business in this state, including, but not limited to, nonprofit hospital service corporations and nonprofit medical service corporations established pursuant to chapters 19 and 20 of title 27, and health maintenance organizations established pursuant to chapter 41 of title 27, shall bear the cost of these actuaries and subject matter experts according to a schedule of their direct writing of health insurance in this state as determined by the health insurance commissioner. The amount to be invoiced to and paid by the above-described health insurance companies doing business in this state for the study conducted under this section shall not exceed a total of one hundred seventy-five thousand dollars ($175,000). 27-84-5. Regulations. The health insurance commissioner may promulgate rules and regulations as are necessary to carry out and effectuate the provisions of this chapter. SECTION 2. Sections 31-36-7 and 31-36-20 of the General Laws in Chapter 31-36 entitled “Motor Fuel Tax” are hereby amended to read as follows: 31-36-7. Monthly report of distributors — Payment of tax. (a) State requirements. (1) Every distributor shall, on or before the twentieth (20th) 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 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 tax at the rate of thirty-two cents ($0.32) per gallon on all taxable gallons of fuel sold or used in this state for periods ending on or before 4 June 30, 2025. (2) Every distributor shall, on or before the twentieth 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 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, tax at the rate of forty cents ($0.40) per gallon on all taxable gallons of fuel sold or used in this state for periods beginning on or after July 1, 2025 and ending on or before June 30, 2026 . (3) Every distributor shall, on or before the twentieth 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 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, tax at the rate of thirty-eight cents ($0.38) per gallon on all taxable gallons of fuel sold or used in this state for periods beginning on or after July 1, 2026. (b) Federal requirements. In the event the federal government requires a certain portion of the gasoline tax to be dedicated for highway improvements, then the state controller is directed to establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings the state into federal compliance. (1) Beginning July 1, 2015, and every other year thereafter, through June 30, 2025, the gasoline tax shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Bureau of Labor Statistics determined as of September 30 of the prior calendar year; said adjustment shall be rounded to the nearest one cent ($.01) increment, provided that the total tax shall not be less than provided for in subsection (a)(1). (2) Beginning July 1, 2027, and every other year thereafter, the gasoline tax shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI- U) as published by the United States Bureau of Labor Statistics determined as of September 30 of the two (2) prior calendar years; said adjustment shall be rounded to the nearest one cent ($0.01) increment; provided that, the total tax shall not be less than provided for in subsection (a) (2) (3) . 31-36-20. Disposition of proceeds. (a) Disposition of proceeds. (1) 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, and title 46 shall be applied to and held in a separate fund and be deposited in any depositories that 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, that in fiscal year 2004 for the months of July through April six and eighty-five hundredth cents ($0.0685) per gallon of the tax imposed and accruing for the liability under the provisions of § 31-36-7, less refunds and credits, shall be transferred to the Rhode Island public transit authority as provided under § 39-18-21. For the months of May and June in fiscal year 2004, the allocation shall be five and five hundredth cents ($0.0505). Thereafter, until fiscal year 2006, the allocation shall be six and twenty-five hundredth cents ($0.0625). For fiscal years 2006 through FY 2008, the allocation shall be seven and twenty-five hundredth cents ($0.0725); provided, that expenditures shall include the costs of a market survey of non-transit users and a management study of the agency to include the feasibility of moving the authority into the department of transportation, both to be conducted under the auspices of the state budget officer. The state budget officer shall hire necessary consultants to perform the studies, and shall direct payment by the authority. Both studies shall be transmitted by the budget officer to the 2006 session of the general assembly, with comments from the authority. For fiscal year 2009, the allocation shall be seven and seventy-five hundredth cents ($0.0775), of which one-half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9- 11. For fiscal years 2010 through fiscal year 2025, the allocation shall be nine and seventy-five hundredth cents ($0.0975), of which one-half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-11. For fiscal years 2026 and thereafter, the allocation shall be eleven and seventy-five hundredths cents ($0.1175) of which one- half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-11. One cent ($0.01) per gallon shall be transferred to the elderly/disabled transportation program of the department of human services, and the remaining cents per gallon shall be available for general revenue as determined by the following schedule: (i) For the fiscal year 2000, three and one-fourth cents ($0.0325) shall be available for general revenue. (ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for general revenue. (iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general revenue. (iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for general revenue. (v) For the months of July through April in fiscal year 2004, one and four-tenths cents ($0.014) shall be available for general revenue. For the months of May through June in fiscal year 2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter, until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year 2006 through fiscal year 2009 one cent ($0.01) shall be available for general revenue. (2) 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 human services, the Rhode Island turnpike and bridge authority, and the general fund, shall be made monthly and credited and paid by the general treasurer to the designated fund in accordance with this section. (3) Commencing in fiscal year 2004, the director of the Rhode Island department of transportation is authorized to remit, on a monthly or less frequent basis as shall be determined by the director of the Rhode Island department of transportation, or the director’s designee, or at the election of the director of the Rhode Island department of transportation, with the approval of the director of the department of administration, to an indenture trustee, administrator, or other third- party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax imposed, in order to satisfy debt service payments on aggregate bonds issued pursuant to a joint resolution and enactment approving the financing of various department of transportation projects adopted during the 2003 session of the general assembly, and approved by the governor. (4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be transferred to the Rhode Island turnpike and bridge authority to be used for maintenance, operations, capital expenditures, and debt service on any of its projects as defined in chapter 12 of title 24 in lieu of a toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge authority is authorized to remit to an indenture trustee, administrator, or other third-party fiduciary any or all of the foregoing transfers in order to satisfy and/or secure its revenue bonds and notes and/or debt service payments thereon, including, but not limited to, the bonds and notes issued pursuant to the Joint Resolution set forth in Section 3 of Article 6 of Chapter 23 of the Public Laws of 2010. Notwithstanding any other provision of said joint resolution, the Rhode Island turnpike and bridge authority is expressly authorized to issue bonds and notes previously authorized under said joint resolution for the purpose of financing all expenses incurred by it for the formerly authorized tolling of the Sakonnet River Bridge and the termination thereof. (b) Notwithstanding any other provision of law to the contrary, all other funds in the fund shall be dedicated to the department of transportation, subject to annual appropriation by the general assembly. The director 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 the fund together with a budget for proposed expenditures for the succeeding fiscal year in compliance with §§ 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized and directed to draw their orders upon the general treasurer for the payments of any sum or portion of the sum that may be required from time to time upon receipt 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, with the approval of the governor and the director of administration, in anticipation of the receipts of monies enumerated in this section to advance sums to the fund, for the purposes specified in this section, any funds of the state not specifically held for any particular purpose. However, all the advances made to the fund shall be returned to the general fund immediately upon the receipt by the fund of proceeds resulting from the receipt of monies to the extent of the advances. SECTION 3. Section 39-1-27.7 of the General Laws in Chapter 39-1 entitled "Public Utilities Commission" is hereby amended to read as follows: 39-1-27.7. System reliability and least-cost procurement. (a) Least-cost procurement shall comprise system reliability and energy efficiency and conservation procurement, as provided for in this section, and supply procurement, as provided for in § 39-1-27.8, as complementary but distinct activities that have as common purpose meeting electrical and natural gas energy needs in Rhode Island, in a manner that is optimally cost-effective, reliable, prudent, and environmentally responsible. (b) The commission shall establish not later than June 1, 2008, standards for system reliability and energy efficiency and conservation procurement that shall include standards and guidelines for: (1) System reliability procurement, including but not limited to: (i) Procurement of energy supply from diverse sources, including, but not limited to, renewable energy resources as defined in chapter 26 of this title; (ii) Distributed generation, including, but not limited to, renewable energy resources and thermally leading combined heat and power systems, that is reliable and is cost-effective, with measurable, net system benefits; (iii) Demand response, including, but not limited to, distributed generation, back-up generation, and on-demand usage reduction, that shall be designed to facilitate electric customer participation in regional demand response programs, including those administered by the independent service operator of New England (“ISO-NE”), and/or are designed to provide local system reliability benefits through load control or using on-site generating capability; (iv) To effectuate the purposes of this division, the commission may establish standards and/or rates (A) For qualifying distributed generation, demand response, and renewable energy resources; (B) For net metering; (C) For back-up power and/or standby rates that reasonably facilitate the development of distributed generation; and (D) For such other matters as the commission may find necessary or appropriate. (2) Least-cost procurement, which shall include procurement of energy efficiency and energy conservation measures that are prudent and reliable and when such measures are lower cost than acquisition of additional supply, including supply for periods of high demand. (c) The standards and guidelines provided for by subsection (b) shall be subject to periodic review and as appropriate amendment by the commission, which review will be conducted not less frequently than every three (3) years after the adoption of the standards and guidelines. (d) To implement the provisions of this section: (1) The commissioner of the office of energy resources and the energy efficiency and resources management council, either jointly or separately, shall provide the commission findings and recommendations with regard to system reliability and energy efficiency and conservation procurement on or before March 1, 2008, and triennially on or before March 1 thereafter through 25 March 1, 2028 March 1, 2038 . The report shall be made public and be posted electronically on the website of the office of energy resources. (2) The commission shall issue standards not later than June 1, 2008, with regard to plans for system reliability and energy efficiency and conservation procurement, which standards may be amended or revised by the commission as necessary and/or appropriate. (3) The energy efficiency and resources management council shall prepare by July 15, 2008, a reliability and efficiency procurement opportunity report that shall identify opportunities to procure efficiency, distributed generation, demand response, and renewables and that shall be submitted to the electrical distribution company, the commission, the office of energy resources, and the joint committee on energy. (4) (3) Each electric al and natural gas distribution company shall submit to the commission on or before September 1, 2008, and triennially on or before September 1 thereafter through 3 September 1, 2028 2038 , a plan for system reliability and energy efficiency and conservation procurement. In developing the plan, the distribution company may seek the advice of consult with the division , the commissioner and the council. The plan shall include measurable goals and target percentages for each energy resource, pursuant to standards established by the commission, including efficiency, distributed generation, demand response, combined heat and power, and renewables. The plan shall be made public and be posted electronically on the website of the office of energy resources, and shall also be submitted to the general assembly. (5) (4) The commission shall issue an order approving all energy-efficiency measures that are cost-effective and lower cost than acquisition of additional supply, with regard to the plan from the electrical and natural gas distribution company, and reviewed and approved by the energy efficiency and resources management council, and any related annual triennial plans, and shall approve a fully reconciling funding mechanism to annually fund investments in all efficiency measures that are cost-effective and lower cost than acquisition of additional supply, not greater than sixty (60) days after it is filed with the commission. (6)(i) Each electrical and natural gas distribution company shall provide a status report, which shall be public, on the implementation of least-cost procurement on or before December 15, 2008, and on or before February 1, 2009, to the commission, the division, the commissioner of the office of energy resources, and the energy efficiency and resources management council which 21 may provide the distribution company recommendations with regard to effective implementation of least-cost procurement. The report shall include the targets for each energy resource included in the order approving the plan and the achieved percentage for energy resource, including the achieved percentages for efficiency, distributed generation, demand response, combined heat and power, and renewables, as well as the current funding allocations for each eligible energy resource and the businesses and vendors in Rhode Island participating in the programs. The report shall be posted electronically on the website of the office of energy resources. (5) (i i ) Beginning on November 1, 2012, or before, each electric distribution company shall support the installation and investment in clean and efficient combined heat and power installations at commercial, institutional, municipal, and industrial facilities. This support shall be documented annually triennially in the electric distribution company’s energy-efficiency program plans. In order to effectuate this provision, the energy efficiency and resource management council shall seek input from the public, the gas and electric distribution company, the commerce corporation, and commercial and industrial users, and make recommendations regarding services to support the development of combined heat and power installations in the electric distribution company’s annual and triennial energy-efficiency program plans. (ii i ) The energy-efficiency annual triennial plan shall include, but not be limited to, a plan for identifying and recruiting qualified combined heat and power projects, incentive levels, contract terms and guidelines, and achievable megawatt targets for investments in combined heat and power systems. In the development of the plan, the energy efficiency and resource management council and the electric distribution company shall factor into the combined heat and power plan and program, the following criteria: (A) Economic development benefits in Rhode Island, including direct and indirect job creation and retention from investments in combined heat and power systems; (B) Energy and cost savings for customers; (C) Energy supply costs; (D) Greenhouse gas emissions standards and air quality benefits; and (E) System reliability benefits. ( iv iii ) The energy efficiency and resource management council shall conduct at least one public review meeting annually triennially , to discuss and review the combined heat and power program, with at least seven (7) business days’ notice, prior to the electric and gas distribution utility submitting the plan to the commission. The commission shall evaluate the submitted combined heat and power program as part of the annual triennial energy-efficiency plan. The commission shall issue an order approving the energy-efficiency plan and programs within sixty (60) days of the filing. (e) If the commission shall determine that the implementation of system reliability and energy efficiency and conservation procurement has caused, or is likely to cause, under or over- recovery of overhead and fixed costs of the company implementing the procurement, the commission may establish a mandatory rate-adjustment clause for the company so affected in order to provide for full recovery of reasonable and prudent overhead and fixed costs. (f) The commission shall conduct a contested case proceeding to establish a performance- based incentive plan that allows for additional compensation for each electric distribution company and each company providing gas to end-users and/or retail customers based on the level of its success in mitigating the cost and variability of electric and gas services through procurement portfolios the sharing of net benefits based on a set of prioritized benefit categories that maximizes electric and gas ratepayer savings . (g) Any cumulative direct bill charge to fund the triennial program for the 2027 through 2029 electric and gas energy efficiency plan shall not exceed seventy-five million dollars ($75,000,000) in each year of the plan. In the years following the adoption of the 2027–2029 triennial plan, the Commission may adjust the direct bill charge amounts approved in such plan; provided, however, that any such adjustment shall not exceed the seasonally-adjusted percentage change for the third year of the immediately preceding triennial plan for the energy expenditure category in the Consumer Price Index for All Urban Consumers (CPI-U) as published by the United States Bureau of Labor Statistics, over the applicable three-year planning period. (g)(1) The office of energy resources shall conduct a study and analysis of the electric and gas distribution company’s state energy efficiency programs that will examine implemented program and planned conservation measures and review and confirm the claimed energy savings. In carrying out this study, the office shall utilize a representative sample of different customer classes and measures that have and/or will be participating in the state energy efficiency programs. At a minimum, the study performed by the office of energy resources shall include the following in its scope of work: (i) Independently review and summarize the electric and gas distribution company process for incorporating results from completed evaluation studies into ongoing energy efficiency program reporting and implementation. (ii) Conduct an independent review of gas and electricity efficiency programs, which may include billing analysis techniques. The scope and subjects of this analysis will be decided by the working group with input and advice from an independent consultant. The analysis will be conducted by a qualified independent consultant using industry accepted methods. (iii) Review the data-collection practices, including metering equipment used; sampling frequency; sample sizes; and data validation procedures, and the methods for data analysis employed, as deemed appropriate by the independent evaluator. (iv) Study results and recommendations will be presented to the public utilities commission and the energy efficiency and resource management council. (2) The office of energy resources shall consult with the working group in development of the request for proposals (RFP), and during the course of the study, including the preliminary study results. The working group shall be comprised of one representative from each of the following groups chosen by the office of energy resources: (i) Large commercial and industrial energy users; (ii) Small business energy users; (iii) Residential energy users; (iv) Municipal and state energy users; (v) Low-income energy users; (vi) Electric and gas distribution company; and (vii) Energy efficiency and resource management council. (3) The office of energy resources, in consultation with the electric and gas distribution company and representatives referenced in subsection (g)(2), shall be authorized to hire an energy consulting company or firm to carry out the energy efficiency verification study. The costs associated with this study, including, but not limited to, those associated with the consultant or firm contract and reasonable administrative costs incurred by the office in the execution of subsection (g) of this section, shall be recoverable through the system benefit charge subject to commission approval. Funding shall be transferred from the electric and gas distribution utility to the office of energy resources upon request by the office. (4) The office of energy resources shall submit this report on or before October 30, 2019, to the governor, the president of the senate, and the speaker of the house. The office and its selected energy consulting company or firm shall host two (2) public presentations on the preliminary and final results of the study. SECTION 4. Chapter 39-2 of the General Laws entitled “Duties of Utilities and Carriers” is hereby amended by adding thereto the following section: 39-2-29. In-state transmission owner required to participate in the regional independent system operator. On and after the effective date of this section, no electric distribution company, as defined in § 39-1-2, shall own, operate, or control a transmission facility, as defined in § 39-1-2, located in the state unless such company joins or is a member of ISO New England, Inc. or its successor organization as approved by the federal energy regulatory commission. SECTION 5. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of Utilities and Carriers" is hereby amended to read as follows: 39-2-1.2. Utility base rate — Advertising, demand-side management, and renewables. (a) In addition to costs prohibited in § 39-1-27.4(b), no public utility distributing or providing heat, electricity, or water to or for the public shall include as part of its base rate any expenses for advertising, either direct or indirect, that promotes the use of its product or service, or is designed to promote the public image of the industry. No public utility may furnish support of any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and include the expense as part of its base rate. Nothing contained in this section shall be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or educational in nature, that is designed to promote public safety conservation of the public utility’s product or service. The public utilities commission shall promulgate such rules and regulations as are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect, and to otherwise effectuate the provisions of this section. (b) Effective as of January 1, 2008, and for a period of twenty (20) thirty (30) years thereafter, each electric distribution company shall include a charge per kilowatt-hour delivered to fund demand-side management programs. The 0.3 mills per kilowatt-hour delivered to fund renewable energy programs shall remain in effect until December 31, 2028 2031 . The electric distribution company shall establish and, after July 1, 2007, maintain, two (2) separate accounts, one for demand-side management programs (the “demand-side account”), which shall be funded by the electric demand-side charge and administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission, and one for renewable energy programs, which shall be administered by the Rhode Island commerce corporation pursuant to § 42-64-13.2 and shall be held and disbursed by the distribution company as directed by the Rhode Island commerce corporation for the purposes of developing, promoting, and supporting renewable energy programs. During the time periods established in this subsection, the commission may, in its discretion, after notice and public hearing, increase the sums for demand-side management and renewable resources. In addition, the commission shall, after notice and public hearing, determine the appropriate charge for these programs. The office of energy resources, and/or the administrator of the renewable energy programs, may seek to secure for the state an equitable and reasonable portion of renewable energy credits or certificates created by private projects funded through those programs. As used in this section, “renewable energy resources” shall mean: (1) Power generation technologies, as defined in § 39-26-5, “eligible renewable energy resources,” including off-grid and on-grid generating technologies located in Rhode Island, as a priority; (2) Research and development activities in Rhode Island pertaining to eligible renewable energy resources and to other renewable energy technologies for electrical generation; or (3) Projects and activities directly related to implementing eligible renewable energy resources projects in Rhode Island. Technologies for converting solar energy for space heating or generating domestic hot water may also be funded through the renewable energy programs. Fuel cells may be considered an energy efficiency technology to be included in demand-side management programs. Special rates for low- income customers in effect as of August 7, 1996, shall be continued, and the costs of all of these discounts shall be included in the distribution rates charged to all other customers. Nothing in this section shall be construed as prohibiting an electric distribution company from offering any special rates or programs for low-income customers which are not in effect as of August 7, 1996, subject to the approval by the commission. (1) The renewable energy investment programs shall be administered pursuant to rules established by the Rhode Island commerce corporation. Said rules shall provide transparent criteria to rank qualified renewable energy projects, giving consideration to: (i) The feasibility of project completion; (ii) The anticipated amount of renewable energy the project will produce; (iii) The potential of the project to mitigate energy costs over the life of the project; and (iv) The estimated cost per kilowatt-hour (KWh) of the energy produced from the project. (c) [Deleted by P.L. 2012, ch. 241, art. 4, § 14.] (d) The chief executive officer of the commerce corporation is authorized and may enter into a contract with a contractor for the cost-effective administration of the renewable energy programs funded by this section. A competitive bid and contract award for administration of the renewable energy programs may occur every three (3) years and shall include, as a condition, that after July 1, 2008, the account for the renewable energy programs shall be maintained and administered by the commerce corporation as provided for in subsection (b) of this section. (e) Effective January 1, 2007, and for a period of twenty-one (21) thirty-one (31) years thereafter, each gas distribution company shall include, with the approval of the commission, a charge per deca therm delivered to fund demand-side management programs (the “gas demand- side charge”), including, but not limited to, programs for cost-effective energy efficiency, energy conservation, combined heat and power systems, and weatherization services for low-income households. (f) Each gas company shall establish a separate account for demand-side management programs (the “gas demand-side account”) that shall be funded by the gas demand-side charge and administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission. The commission may establish administrative mechanisms and procedures that are similar to those for electric demand-side management programs administered under the jurisdiction of the commission and that are designed to achieve cost-effectiveness and high, life-time savings of efficiency measures supported by the program. (g) The commission may, if reasonable and feasible, except from this demand-side management charge: (1) Gas used for distribution generation; and (2) Gas used for the manufacturing processes, where the customer has established a self- directed program to invest in and achieve best-effective energy efficiency in accordance with a plan approved by the commission and subject to periodic review and approval by the commission, which plan shall require annual reporting of the amount invested and the return on investments in terms of gas savings. (h) The commission may provide for the coordinated and/or integrated administration of electric and gas demand-side management programs in order to enhance the effectiveness of the programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the recommendation of the office of energy resources, be through one or more third-party entities designated by the commission pursuant to a competitive selection process. (i) Effective January 1, 2007, the commission shall allocate, from demand-side management gas and electric funds authorized pursuant to this section, an amount not to exceed three percent (3%) of such funds on an annual basis for the retention of expert consultants, and reasonable administration costs of the energy efficiency and resource management council associated with planning, management, and evaluation of energy-efficiency programs, renewable energy programs, system reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other actions pertaining to the purposes, powers, and duties of the council, which allocation may by mutual agreement, be used in coordination with the office of energy resources to support such activities. (j) Effective January 1, 2016, the commission shall annually allocate from the administrative funding amount allocated in subsection (i) from the demand-side management program as described in subsection (i) as follows: (1) for the energy efficiency and resource management council, no more than forty percent (40%) for the purposes identified in subsection (i) and (2) sixty percent (60%) of three percent (3%) from the demand-side management gas and electric funds annually to the office of energy resources for activities associated with planning, management, and evaluation of energy-efficiency programs, renewable energy programs, system reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other actions pertaining to the purposes, powers, and duties of the office of energy resources and shall have exclusive authority to direct the use of the office administrative and programmatic funds. (k) On July 1 April 15 , of each year, the office and the council shall submit to the governor, the president of the senate, and the speaker of the house of representatives, separate financial and performance reports regarding the demand-side management programs, including the specific level of funds that were contributed by the residential, municipal, and commercial and industrial sectors to the overall programs; the businesses, vendors, and institutions that received funding from demand-side management gas and electric funds used for the purposes in this section; and the businesses, vendors, and institutions that received the administrative funds for the purposes in subsections (i) and (j). These reports shall be posted electronically on the websites of the office of energy resources and the energy efficiency and resources management council. (l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each electric distribution company, except for the Pascoag Utility District and Block Island Power Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side charge collections to the Rhode Island infrastructure bank. (m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each gas distribution company shall remit two percent (2%) of the amount of the 2014 gas demand-side charge collections to the Rhode Island infrastructure bank. (n) (l) Effective January 1, 202 2 7 , the commission shall allocate, from demand-side management gas and electric funds authorized pursuant to this section, five million dollars ($5,000,000) two million five hundred thousand dollars ($2,500,000) of such funds on an annual basis to the Rhode Island infrastructure bank. Gas and electric demand-side funds transferred to the Rhode Island infrastructure bank pursuant to this section shall be eligible to be used in any energy efficiency, renewable energy, clean transportation, clean heating, energy storage, or demand-side management project financing program administered by the Rhode Island infrastructure bank notwithstanding any other restrictions on the use of such collections set forth in this chapter. The infrastructure bank shall report annually to the commission within ninety (90) days of the end of each calendar year how collections transferred under this section were utilized. (o) (m) The Rhode Island office of energy resources, in coordination with the energy efficiency and resource management council, and following consultation with the public utilities commission and division of public utilities and carriers, shall issue a request for proposals for the cost-effective administration and implementation of statewide energy efficiency programs funded by this section no later than September 30, 2023. The draft request for proposals shall be reviewed through at least one technical session at the public utilities commission prior to issuance. Public utilities commission approval shall not be required. The Rhode Island office of energy resources, in coordination with the energy efficiency and resource management council, shall evaluate proposals and determine whether energy efficiency administration and implementation by the electric and gas distribution company or a third party is likely to achieve the most net benefits for electric and gas customers in Rhode Island. After January 1, 2025, the office of energy resources may, periodically, and at its discretion, issue additional requests for proposals for the administration and implementation of statewide energy efficiency programs funded through this chapter of an electric distribution company as defined in § 39-1-2(a)(12) or gas distribution company included as a public utility in § 39-1-2(a)(20) that has greater than one hundred thousand (100,000) customers. (1) Nothing in this chapter shall prohibit the electric and/or gas distribution company from submitting a proposal to administer and implement the state energy efficiency programs. (2) If the office of energy resources, in coordination with the energy efficiency and resource management council, determines that the use of a third-party administrator is likely to achieve the most net benefits for electric and gas customers in Rhode Island, it shall file its recommendation with the public utilities commission, which shall docket and rule on the matter pursuant to its general statutory authorization. (3) If the commission determines that the recommended third-party administrator is in the interest of Rhode Island utility customers, it shall provide for the full cost recovery for the third- party administrator consistent with the terms of the approved contract, and which shall reflect the overall annual triennial budget approved by the commission. The third-party administrator shall be subject to all the requirements set forth for the electric and gas distribution company per § 39-1- 27.7. (4) If the commission determines that a third-party administrator will administer the state energy efficiency programs on or after June 1, 2024, the commission shall direct the gas and electric distribution company to annually collect and transfer the gas and electric energy efficiency funds to the third-party administrator for each year of the annual triennial state energy efficiency program beginning with the program year and thereafter for the remaining program years. The gas and electric distribution company shall annually transfer the annual triennial administrative funds to the office of energy resources and energy efficiency and resource management council. (5) If a third-party administrator implements the annual triennial energy efficiency programs then they it shall be required to develop and design the annual triennial state energy efficiency program with the office of energy resources and energy efficiency and resource management council, including a vote by the energy efficiency and resource management council prior to the third-party administrator filing the annual triennial program plan to with the public utilities commission for review and a decision. (6) The third-party administrator shall file the annual triennial state energy efficiency program plan to with the public utilities commission for review and approval no later than 25 September June 30, 2024, and annually triennially thereafter on such date. (7) The third-party administrator shall provide all information requested by the office of energy resources, energy efficiency and resource management council, division of public utilities and carriers, and the public utilities commission, including responses to data requests, which are necessary for the agencies to carry out their respective oversight roles, and shall be accountable to the same standards as the utility with administering and implementing energy efficiency, system reliability, and least-cost procurement standards and goals in accordance with § 39-1-27.7 and this section. (8) If the office does not recommend advancement of a third-party administrator, the electric and gas distribution company shall continue to administer statewide energy efficiency programs. SECTION 6. Section 39-2.2-2 of the General Laws in Chapter 39-2.2 entitled "Rhode Island Utility Fair Share Roadway Repair Act" is hereby amended to read as follows: 39-2.2-2. Road repair by public utility or utility facility. (a) Any public utility as defined by § 39-1-2 or any utility facility as defined by chapter 8.1 of title 24 that shall alter, excavate, disrupt, or disturb a roadway shall be responsible for complete repaving and repair of the roadway from curbline to curbline or as required in accordance with the state or municipal utility permit requirements. (b) Any public utility as defined by § 39-1-2 or any utility facility as defined by chapter 8.1 of title 24 shall recover all costs required of this chapter in accordance with generally accepted accounting principles. SECTION 7. Chapter 39-26 entitled “Renewable Energy Standard” is hereby amended by adding thereto the following section: 39-26-5.1. Zero-emission resources. (a) Zero-emission resources are: (1) Nuclear energy resources, meaning electricity generated by a nuclear fission or nuclear fusion facility that is licensed by the United States Nuclear Regulatory Commission or its successor, and that produces no direct emissions of greenhouse gases or criteria air pollutants at the point of generation. (2) Large-scale hydroelectric facilities, meaning hydroelectric generation units that are not “small hydro facilities” as defined in § 39-26-2, that generate electricity through the conversion of the energy of flowing or falling water and that produce no direct emissions of greenhouse gases or criteria air pollutants at the point of generation. (b) For the purposes of the regulations promulgated under this chapter, eligible zero- emission energy resources are generation units in the NEPOOL control area using zero-emission energy resources as defined in this section. (c) A generation unit located in an adjacent control area outside of the NEPOOL may qualify as an eligible zero-emission energy resource, but the associated generation attributes shall be applied to any zero-emission standard established under this chapter only to the extent that the energy produced by the generation unit is actually delivered into NEPOOL for consumption by New England customers. The delivery of the energy from the generation unit into NEPOOL must be demonstrated by: (1) A unit-specific bilateral contract for the sale and delivery of such energy into NEPOOL; and (2) Confirmation from ISO-New England that the zero-emission energy was actually settled in the NEPOOL system; and (3) Confirmation through the North American Electric Reliability Corporation tagging system, or its successor, that the import of the energy into NEPOOL actually occurred; or (4) Any such other requirements as the commission deems appropriate. (d) NE-GIS certificates associated with energy production from off-grid generation and customer-sited generation facilities certified by the commission as eligible zero-emission energy resources may also be used to demonstrate compliance with any zero-emission standard. SECTION 8. Sections 39-26-2, 39-26-4, 39-26-6, and 39-26-7 of the General Laws in Chapter 39-2 entitled "Renewable Energy Standard" are hereby amended to read as follows: 39-26-2. Definitions. When used in this chapter: (1) “Alternative compliance payment” means a payment to the renewable energy development fund of fifty dollars ($50.00) per megawatt-hour of renewable energy obligation, in 2003 dollars, adjusted annually up or down by the consumer price index, which may be made in lieu of standard means of compliance with this statute. (1) “Alternative compliance payment” means a payment made in lieu standard means of compliance with this statute, as follows: (i) For new renewable energy and zero-emission resources, an alternative compliance payment of forty dollars ($40.00) per megawatt-hour of renewable energy obligation. (ii) For existing renewable energy and zero-emission resources, an alternative compliance payment of eleven dollars ($11.00) per megawatt-hour of renewable energy obligation. (iii) All such payments shall be deposited into the renewable energy development fund and distributed in accordance with § 39-26-7(10). (2) “Commission” means the Rhode Island public utilities commission. (3) “Compliance year” means a calendar year beginning January 1 and ending December 31, for which an obligated entity must demonstrate that it has met the requirements of this statute. (4) “Customer-sited generation facility” means a generation unit that is interconnected on the end-use customer’s side of the retail electricity meter in such a manner that it displaces all or part of the metered consumption of the end-use customer. (5) “Electrical energy product” means an electrical energy offering, including, but not limited to, last-resort and standard-offer service, that can be distinguished by its generation attributes or other characteristics, and that is offered for sale by an obligated entity to end-use customers. (6) “Eligible biomass fuel” means fuel sources including brush, stumps, lumber ends and trimmings, wood pallets, bark, wood chips, shavings, slash, and other clean wood that is not mixed with other solid wastes; agricultural waste, food, and vegetative material; energy crops; landfill methane; biogas; or neat biodiesel and other neat liquid fuels that are derived from such fuel sources. (7) “Eligible renewable energy and zero-emission resource” means resources as defined in 7 § 39-26-5 and § 39-26-5.1 . (8) “End-use customer” means a person or entity in Rhode Island that purchases electrical energy at retail from an obligated entity. (9) “Existing renewable energy and zero-emission resources” means generation units using eligible renewable energy and zero-emission resources and first going into commercial operation before December 31, 1997. (10) “Generation attributes” means the nonprice characteristics of the electrical energy output of a generation unit including, but not limited to, the unit’s fuel type, emissions, vintage, and policy eligibility. (11) “Generation unit” means a facility that converts a fuel or an energy resource into electrical energy. (12) “High-heat medical waste processing facility” means a facility that: (i) Generates electricity from the combustion, gasification, or pyrolysis of regulated medical waste; (ii) Generates electricity from the combustion of fuel derived from the gasification or pyrolysis of regulated medical waste; or (iii) Disposes of, processes, or treats regulated medical waste through combustion, gasification, pyrolysis, or any process that exposes waste to temperatures above four hundred degrees Fahrenheit (400ºF). (13) “NE-GIS” means the generation information system operated by NEPOOL, its designee or successor entity, that includes a generation information database and certificate system, and that accounts for the generation attributes of electrical energy consumed within NEPOOL. (14) “NE-GIS certificate” means an electronic record produced by the NE-GIS that identifies the relevant generation attributes of each megawatt-hour accounted for in the NE-GIS. (15) “NEPOOL” means the New England Power Pool or its successor. (16) “New renewable energy and zero-emission resources” means generation units using eligible renewable energy and zero-emission resources and first going into commercial operation after December 31, 1997; or the incremental output of generation units using eligible renewable energy and zero-emission resources that have demonstrably increased generation in excess of ten percent (10%) using eligible renewable energy and zero-emission resources through capital investments made after December 31, 1997; but in no case involve any new impoundment or diversion of water with an average salinity of twenty (20) parts per thousand or less. (17) “Obligated entity” means a person or entity who or that sells electrical energy to end- use customers in Rhode Island, including, but not limited to: nonregulated power producers and electric utility distribution companies, as defined in § 39-1-2, supplying standard-offer service, last- resort service, or any successor service to end-use customers, including Narragansett Electric, but not to include Block Island Power Company as described in § 39-26-7 or Pascoag Utility District. (18) “Off-grid generation facility” means a generation unit that is not connected to a utility transmission or distribution system. (19) “Renewable energy and zero-emission resource” means any one or more of the renewable energy and zero-emission resources described in § 39-26-5(a) and § 39-26-5.1 . (20) “Reserved certificate” means a NE-GIS certificate sold independent of a transaction involving electrical energy, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS. (21) “Reserved certificate account” means a specially designated account established by an obligated entity, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS, for transfer and retirement of reserved certificates from the NE-GIS. (22) “Self-generator” means an end-use customer in Rhode Island that displaces all or part of its retail electricity consumption, as metered by the distribution utility to which it interconnects, through the use of a customer-sited generation facility, and the ownership of any such facility shall not be considered an obligated entity as a result of any such ownership arrangement. (23) “Small hydro facility” means a facility employing one or more hydroelectric turbine generators and with an aggregate capacity not exceeding thirty megawatts (30 MW). For purposes of this definition, “facility” shall be defined in a manner consistent with Title 18 of the Code of Federal Regulations, section 292.204; provided, however, that the size of the facility is limited to thirty megawatts (30 MW), rather than eighty megawatts (80 MW). 39-26-4. Renewable energy standard. (a) Starting in compliance year 2007, all obligated entities shall obtain at least three percent (3%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric line losses, from eligible renewable energy and zero-emission resources, escalating, according to the following schedule: (1) At least three percent (3%) of retail electricity sales in compliance year 2007; (2) An additional one-half of one percent (0.5%) of retail electricity sales in each of the following compliance years 2008, 2009, 2010; (3) An additional one percent (1%) of retail electricity sales in each of the following compliance years 2011, 2012, 2013, 2014, provided that the commission has determined the adequacy, or potential adequacy, of renewable and zero-emission energy supplies to meet these percentage requirements; (4) An additional one and one-half percent (1.5%) of retail electricity sales in each of the 8 following compliance years 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022; 9 (5) [Deleted by P.L. 2016, ch. 144, § 1 and P.L. 2016, ch. 155, § 1.] (6) An additional four percent (4%) of retail electricity sales in 2023; (7) An additional five percent (5%) of retail electricity sales in 2024; (8) An additional six percent (6%) of retail electricity sales in 2025; (9) An additional seven percent (7%) of retail electricity sales in 2026 and 2027; (10) An additional seven and one-half percent (7.5%) of retail electricity sales in 2028; (11) An additional eight percent (8%) of retail electricity sales in 2029; (12) An additional eight and one-half percent (8.5%) of retail electricity sales in 2030; (13) An additional nine percent (9%) of retail electricity sales in 2031; and (14) An additional nine and one-half percent (9.5%) of retail electricity sales in 2032 and 2033 to achieve the goal that one hundred percent (100%) of Rhode Island’s electricity demand is from renewable energy by 2033 and each year thereafter . (10) Starting in compliance year 2027, all obligated entities shall obtain at least thirty-five percent (35%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric line losses, from eligible renewable energy and zero-emission resources, escalating, according to the following schedule: (11) An additional one percent (1%) of retail electricity sales in each of compliance years 26 2028, 2029, 2030, and 2031; 27 (12) An additional two percent (2%) of retail electricity sales in each of compliance years 28 2032, 2033, 2034, 2035, and 2036; 29 (13) An additional three percent (3%) of retail electricity sales in each of compliance years 30 2037, 2038, 2039, 2040, 2041, 2042, and 2043; 31 (13) An additional four percent (4%) of retail electricity sales in each of compliance years 32 2044, 2045, 2046, 2047, and 2048; (14) An additional five percent (5%) of retail electricity sales in each of compliance years 2049 and 2050 to achieve one hundred percent (100%) of Rhode Island’s electricity demand is from renewable energy and zero-emission resources by 2050 and each year thereafter. (b) For each obligated entity and in each compliance year, the amount of retail electricity sales used to meet obligations under this statute that are derived from existing renewable energy and zero-emission resources shall not exceed two percent (2%) twenty-five percent (25%) of total retail electricity sales. (c) The minimum renewable energy percentages set forth in subsection (a) shall be met for each electrical energy product offered to end-use customers, in a manner that ensures that the amount of renewable energy of end-use customers voluntarily purchasing renewable energy is not counted toward meeting such percentages. Notwithstanding the foregoing, municipalities engaged in aggregation pursuant to § 39-3-1.2 may include in their aggregation plan terms that would allow voluntary renewable energy products to be counted toward meeting such percentages. In 2024, the commission, with input from the office of energy resources, division of public utilities and carriers, obligated entities, other market participants, and the public, shall assess the impact of allowing voluntary renewable energy purchases to be counted toward meeting the annual percentages. The commission shall submit a report of its findings and recommendations to the governor, speaker of the house, and senate president no later than September 1, 2024. (d) To the extent consistent with the requirements of this chapter, compliance with the renewable energy standard may be demonstrated through procurement of NE-GIS certificates relating to generating units certified by the commission as using eligible renewable energy and zero-emission sources, as evidenced by reports issued by the NE-GIS administrator. Procurement of NE-GIS certificates from off-grid and customer-sited generation facilities, verified by the commission as eligible renewable energy and zero-emission resources, may also be used to demonstrate compliance. With the exception of contracts for generation supply entered into prior to 2002, initial title to NE-GIS certificates from off-grid and customer-sited generation facilities and from all other eligible renewable energy and zero-emission resources, shall accrue to the owner of such a generation facility, unless such title has been explicitly deemed transferred pursuant to contract or regulatory order. (e) In lieu of providing NE-GIS certificates pursuant to subsection (d) of this section, an obligated entity may also discharge all or any portion of its compliance obligations by making an alternative compliance payment to the renewable energy development fund established pursuant to § 39-26-7. (f) Retail electricity sales pursuant to a nonregulated power producer’s supply contract that was executed prior to July 1, 2022, shall be required to obtain an additional one and one-half percent (1.5%) of retail electricity sales each year and are exempted from the requirements of subsections (a)(6) through (a)(14) of this section until the end date of the term of the nonregulated power producer’s supply contract. 39-26-6. Duties of the commission. (a) The commission shall: (1) Develop and adopt regulations on or before December 31, 2005, for implementing a renewable energy standard, which regulations shall include, but be limited to, provisions for: (i) Verifying the eligibility of renewable energy and zero-emission generators and the production of energy from such generators, including requirements to notify the commission in the event of a change in a generator’s eligibility status; (ii) Standards for contracts and procurement plans for renewable energy and zero-emission resources to achieve the purposes of this chapter; (iii) Flexibility mechanisms for the purposes of easing compliance burdens; facilitating bringing new renewable and zero-emission resources on-line; and avoiding and/or mitigating conflicts with state-level source disclosure requirements and green marketing claims throughout the region; which flexibility mechanisms shall allow obligated entities to: (A) Demonstrate compliance over a compliance year; and (B) Bank excess compliance for two (2) three (3) subsequent compliance years , capped at thirty percent (30%) of the current year’s obligation ; and (iv) Annual compliance filings to be made by all obligated entities within one month after NE-GIS reports are available for the fourth (4th) quarter of each calendar year. All electric-utility- distribution companies shall cooperate with the commission in providing data necessary to assess the magnitude of obligation and verify the compliance of all obligated entities. (2) Authorize rate recovery by electric-utility-distribution companies of all prudent incremental costs arising from the implementation of this chapter, including, without limitation: the purchase of NE-GIS certificates , including certificates from zero-emission resources ; the payment of alternative compliance payments; required payments to support the NE-GIS; assessments made pursuant to § 39-26-7(c); and the incremental costs of complying with energy source disclosure requirements. (3) Certify eligible renewable energy and zero-emission resources by issuing statements of qualification within ninety (90) days of application. The commission shall provide prospective reviews for applicants seeking to determine whether a facility would be eligible. 31 (4) [Deleted by P.L. 2022, ch. 218, § 1 and P.L. 2022, ch. 226, § 1.] (5) Establish sanctions for those obligated entities that, after investigation, have been found to fail to reasonably comply with the commission’s regulations. No sanction or penalty shall relieve or diminish an obligated entity from liability for fulfilling any shortfall in its compliance obligation; provided, however, that no sanction shall be imposed if compliance is achieved through alternative compliance payments. The commission may suspend or revoke the certification of generation units, certified in accordance with subsection (a)(3) of this section, that are found to provide false information or that fail to notify the commission in the event of a change in eligibility status or otherwise comply with its rules. Financial penalties resulting from sanctions from obligated entities shall not be recoverable in rates. (6) Report, by February 15, 2006, and by February 15 each year thereafter, to the governor, the speaker of the house, and the president of the senate on the status of the implementation of the renewable energy standards in Rhode Island and other states, and which report shall include in 2009, and each year thereafter, the level of use of renewable energy certificates by eligible renewable energy and zero-emission resources, and the portion of renewable energy standards met through alternative compliance payments, and the amount of rate increases authorized pursuant to subsection (a)(2) of this section. (b) Consistent with the public policy objective of developing renewable and zero-emission generation as an option in Rhode Island, and subject to the review and approval of the commission, the electric distribution company is authorized to propose and implement pilot programs to own and operate no more than fifteen megawatts (15 MW) of renewable - and zero-emission generation demonstration projects in Rhode Island and may include the costs and benefits in rates to distribution customers. At least two (2) demonstration projects shall include renewable generation installed at, or in the vicinity of nonprofit, affordable-housing projects where energy savings benefits are provided to reduce electric bills of the customers at the nonprofit, affordable-housing projects. Any renewable - and zero-emission generation proposals shall be subject to the review and approval of the commission. The commission shall annually make an adjustment to the minimum amounts required under the renewable energy standard under this chapter in an amount equal to the kilowatt hours generated by such units owned by the electric distribution company. The electric and gas distribution company shall also be authorized to propose and implement smart-metering and smart-grid demonstration projects in Rhode Island, subject to the review and approval of the commission, in order to determine the effectiveness of such new technologies for reducing and managing energy consumption, and may include the costs of such demonstration projects in distribution rates to electric customers to the extent the project pertains to electricity usage and in distribution rates to gas customers to the extent the project pertains to gas usage. 39-26-7. Renewable energy development fund. (a) There is hereby authorized and created within the Rhode Island commerce corporation a renewable energy development fund for the purpose of increasing the supply of NE-GIS certificates available for compliance in future years by obligated entities with renewable energy standard requirements, as established in this chapter. The fund shall be located at the Rhode Island commerce corporation. The Rhode Island commerce corporation shall administer the fund and adopt plans and guidelines for the management and use of the fund in coordination with the office of energy resources and the Rhode Island infrastructure bank . (b) The Rhode Island commerce corporation shall enter into agreements with obligated entities to accept alternative compliance payments, consistent with rules of the commission and the purposes set forth in this section; and alternative compliance payments received pursuant to this section shall be trust funds to be held and applied solely for the purposes set forth in this section. (c) The uses of the fund shall include but not be limited to: (1) Stimulating investment in renewable energy development by entering into agreements, including multiyear agreements, for renewable energy certificates; (2) Establishing and maintaining a residential renewable energy program using eligible technologies in accordance with § 39-26-5; (3) Providing technical and financial assistance to municipalities for interconnection and feasibility studies, and/or the installation of renewable energy projects; (4) Implementing and supporting commercial and residential property assessed clean- energy projects; (5) Clean transportation, including electric vehicles and charging infrastructure stations; (6) Energy storage projects; (5) (7) Issuing assurances and/or guarantees to support the acquisition of renewable energy certificates and/or the development of new renewable energy sources for Rhode Island; (6) (8) Establishing escrows, reserves, and/or acquiring insurance for the obligations of the fund; (7) (9) Paying administrative costs of the fund incurred by the Rhode Island commerce corporation, the Rhode Island infrastructure bank, and the office of energy resources, not to exceed ten percent (10%) of the income of the fund, including, but not limited to, alternative compliance payments. All funds transferred from the Rhode Island commerce corporation to support the office of energy resources’ administrative costs shall be deposited as restricted receipts. (d) All applications received for the use of the fund shall be reviewed by the Rhode Island commerce corporation in consultation with the office of energy resources and the Rhode Island infrastructure bank . (e) NE-GIS certificates acquired through the fund may be conveyed to obligated entities or may be credited against the renewable energy standard for the year of the certificate provided that the commission assesses the cost of the certificates to the obligated entity, or entities, benefiting from the credit against the renewable energy standard, which assessment shall be reduced by previously made alternative compliance payments and shall be paid to the fund. (10) Effective January 1, 2027, fifty percent (50%) of all alternative compliance payment revenues shall be transferred to the electric distribution company, with oversight and approval of the office of energy resources, for the purpose of providing direct rate relief, to be applied as bill credits to all ratepayer accounts. The electric distribution company shall file a proposed direct rate relief plan with the Public Utilities Commission for review and approval no later than sixty (60) days after receipt of such funds. (11) All expenditures, contracts, grants, and other programmatic activities undertaken using monies pursuant to this section shall be subject to the prior review and approval of the office of energy resources. SECTION 9. Section 39-26.1-4 of the General Laws in Chapter 39-26.1 entitled "Long- Term Contracting Standard for Renewable Energy" is hereby repealed. 39-26.1-4. Financial remuneration and incentives. In order to achieve the purposes of this chapter, electric distribution companies shall be entitled to financial remuneration and incentives for long-term contracts for newly developed renewable energy resources, which are over and above the base rate revenue requirement established in its cost of service for distribution ratemaking. Such remuneration and incentives shall compensate the electric distribution company for accepting the financial obligation of the long- term contracts. The financial remuneration and incentives described in this section shall apply only to long-term contracts for newly developed renewable energy resources. For long-term contracts approved pursuant to this chapter before January 1, 2022, the financial remuneration and incentives shall be in the form of annual compensation, equal to two and three quarters percent (2.75%) of the actual annual payments made under the contracts for those projects that are commercially operating, unless determined otherwise by the commission at the time of approval. For long-term contracts approved pursuant to this chapter on or after January 1, 2022, including contracts above the minimum long-term contract capacity, the financial remuneration and incentives shall be in the form of annual compensation up to one percent (1.0%) of the actual annual payments made under the contracts through December 31, 2026, for those projects that are commercially operating. For all long-term contracts approved pursuant to this chapter on or after January 1, 2027, financial remuneration and incentives shall not be applied, unless otherwise granted by the commission. For any calendar year in which the electric distribution company’s actual return on equity exceeds the return on equity allowed by the commission in the electric distribution company’s last general rate case, the commission shall have the authority to adjust any or all remuneration paid to the electric distribution company pursuant to this section in order to assure that such remuneration does not result in or contribute toward the electric distribution company earning above its allowed return for such calendar year. SECTION 10. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net Metering” is hereby amended to read as follows: 39-26.4-2. Definitions. Terms not defined in this section herein shall have the same meaning as contained in chapter 26 of this title. When used in this chapter: (1) “Community remote net-metering system” means a facility generating electricity using an eligible net-metering resource that allocates net-metering credits to a minimum of one account for a system associated with low- or moderate-income housing eligible credit recipients, or three (3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of the credits produced by the system are allocated to one eligible credit recipient, and provided further at least fifty percent (50%) of the credits produced by the system are allocated to the remaining eligible credit recipients in an amount not to exceed that which is produced annually by twenty- five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of the eligible credit recipient accounts measured by the three-year (3) average annual consumption of energy over the previous three (3) years. A projected annual consumption of energy may be used until the actual three-year (3) average annual consumption of energy over the previous three (3) years at the eligible credit recipient accounts becomes available for use in determining eligibility of the generating system. The community remote net-metering system may be owned by the same entity that is the customer of record on the net-metered account or may be owned by a third party. (2) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25) yards from mapped roads, with eligibility questions to be resolved by the director of the department of environmental management. Such determination shall constitute a contested case as defined in § 42-35-1. (3) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not include Block Island Power Company or Pascoag Utility District, each of whom shall be required to offer net metering to customers through a tariff approved by the public utilities commission after a public hearing. Any tariff or policy on file with the public utilities commission on the date of passage of this chapter shall remain in effect until the commission approves a new tariff. (4) “Eligible credit recipient” means one of the following eligible recipients in the electric distribution company’s service territory whose electric service account or accounts may receive net-metering credits from a community remote net-metering system. Eligible credit recipients include the following definitions: (i) Residential accounts in good standing. (ii) “Low- or moderate-income housing eligible credit recipient” means an electric service account or accounts in good standing associated with any housing development or developments owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, or private developer that receives assistance under any federal, state, or municipal government program to assist the construction or rehabilitation of housing affordable to low- or moderate- income households, as defined in the applicable federal or state statute, or local ordinance, encumbered by a deed restriction or other covenant recorded in the land records of the municipality in which the housing is located, that: (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households with a gross, annual income that does not exceed eighty percent (80%) of the area median income as defined annually by the United States Department of Housing and Urban Development (HUD); (B) Restricts the monthly rent, including a utility allowance, that may be charged to residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of a household earning eighty percent (80%) of the area median income as defined annually by HUD; (C) Has an original term of not less than thirty (30) years from initial occupancy. Electric service account or accounts in good standing associated with housing developments that are under common ownership or control may be considered a single low- or moderate-income housing eligible credit recipient for purposes of this section. The value of the credits shall be used to provide benefits to tenants. (iii) “Educational institutions” means public and private schools at the primary, secondary, and postsecondary levels. (iv) “Commercial or industrial customers” means any nonresidential customer of the electric distribution company. (5) “Eligible net-metering resource” means eligible renewable energy resource, as defined in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass fuels. (6) “Eligible net-metering system” means a facility generating electricity using an eligible net-metering resource that, for any system with a nameplate capacity in excess of twenty-five kilowatts (25 KW), is reasonably designed and sized to annually produce electricity in an amount that is equal to, or less than, the renewable self-generator’s usage at the eligible net-metering system site measured by the three-year (3) average annual consumption of energy over the previous three (3) years at the electric distribution account(s) located at the eligible net-metering system site. A projected annual consumption of energy may be used until the actual three-year (3) average annual consumption of energy over the previous three (3) years at the electric distribution account(s) located at the eligible net-metering system site becomes available for use in determining eligibility of the generating system. For any system with a nameplate capacity equal to or less than twenty- five kilowatts (25 KW), eligibility shall not be restricted based on prior consumption. The eligible net-metering system may be owned by the same entity that is the customer of record on the net- metered accounts or may be owned by a third party that is not the customer of record at the eligible net-metering system site and which may offer a third-party, net-metering financing arrangement or net-metering financing arrangement, as applicable. Notwithstanding any other provisions of this chapter, any eligible net-metering resource: (i) Owned by a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative; or (ii) Owned and operated by a renewable- generation developer on behalf of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative through a net-metering financing arrangement shall be treated as an eligible net-metering system and all accounts designated by the public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative for net metering shall be treated as accounts eligible for net metering within an eligible net-metering system site; or (iii) Owned and operated by a renewable-generation developer on behalf of one or more commercial or industrial customer(s) through net-metering financing arrangement(s) shall be treated as an eligible net- metering system within an eligible net-metering system site. Notwithstanding any other provision to the contrary, effective July 1, 2060, an eligible net-metering system means a facility generating electricity using an eligible net-metering resource that is interconnected behind the same meter as the net-metering customer’s load. (7) “Eligible net-metering system site” means the site where the eligible net-metering system or community remote net-metering system is located or is part of the same campus or complex of sites contiguous to one another and the site where the eligible net-metering system or community remote net-metering system is located or a farm on which the eligible net-metering system or community remote net-metering system is located. Except for an eligible net-metering system owned by or operated on behalf of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative or for a commercial or industrial customer through a net-metering financing arrangement, the purpose of this definition is to reasonably assure that energy generated by the eligible net-metering system is consumed by net-metered electric service account(s) that are actually located in the same geographical location as the eligible net-metering system. All energy generated from any eligible net-metering system is, and will be considered, consumed at the meter where the renewable energy resource is interconnected for valuation purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a commercial or industrial customer through a net-metering financing arrangement, or except for a community remote net-metering system, all of the net-metered accounts at the eligible net-metering system site must be the accounts of the same customer of record and customers are not permitted to enter into agreements or arrangements to change the name on accounts for the purpose of artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid this restriction. However, a property owner may change the nature of the metered service at the accounts at the site to be master metered in the owner’s name, or become the customer of record for each of the accounts, provided that the owner becoming the customer of record actually owns the property at which the account is located. As long as the net-metered accounts meet the requirements set forth in this definition, there is no limit on the number of accounts that may be net metered within the eligible net-metering system site. (8) “Excess renewable net-metering credit” means a credit that applies to an eligible net- metering system or community remote net-metering system for that portion of the production of electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five percent (125%), except for any system with a nameplate capacity equal to or less than twenty-five kilowatts (25 KW) for which excess renewable net-metering credit applies to all production of electrical energy beyond one hundred percent (100%) of the renewable self-generator’s own consumption at the eligible net-metering system site or the sum of the usage of the eligible credit recipient accounts associated with the community remote net-metering system during the applicable billing period. For electrical energy produced greater than one hundred percent (100%) of the renewable self-generator’s own electricity consumption at the eligible net-metering system site or the sum of the usage of the eligible credit recipient accounts associated with the community remote net- metering system during the applicable billing period, excess renewable net-metering credits shall be equal to the wholesale electricity rate, which is hereby declared to be the ISO-New England energy clearing price. When applying the ISO-New England energy clearing price to calculate the value of excess renewable net-metering credits, the electric distribution company, subject to commission approval and subject to amendment from time to time, may use an annual average, monthly average, or other time increment and may use Rhode Island zone pricing or other applicable locational pricing. The commission shall have the authority to make determinations as to the applicability of this credit to specific generation facilities to the extent there is any uncertainty or disagreement. (9) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are owned by the same entity operating the farm or persons associated with operating the farm; and (ii) The buildings are on the same farmland as the project on either a tract of land contiguous with, or reasonably proximate to, such farmland or across a public way from such farmland. (10) “Grid access fee” means a monthly fee, determined by the commission, that an electric distribution company must use to offset distribution costs associated with net metering systems that otherwise would be paid by ratepayers. The grid access fee shall be assessed to all eligible net- metering systems and or community remote net-metering systems with a nameplate capacity equal to or greater than one (1) megawatt of capacity. For systems with a nameplate capacity of less than one (1) megawatt, the fee shall be zero. The commission shall determine the grid access fee applicable to systems described herein and shall establish a process by which the electric distribution company must apply the grid access fee to offset distribution costs. Beginning January 1, 2027, the initial monthly grid access fee established by the commission must be: a) for a system with a nameplate capacity of one (1) megawatt or more and less than three (3) megawatts, $1.40 multiplied by the nameplate capacity of the system in kilowatts; b) for a system with a nameplate capacity of three (3) megawatts or more and less than five (5) megawatts, $3.00 multiplied by the nameplate capacity of the system in kilowatts; and c) for systems with a nameplate capacity of five (5) megawatts or more, $4.49 multiplied by the nameplate capacity of the system in kilowatts. The commission shall periodically review the initial grid access fee to account for increases in transmission and distribution rates. (10) (11) “Hospital” means and shall be defined and established as set forth in chapter 17 of title 23. (11) (12) “Multi-municipal collaborative” means a group of towns and/or cities that enter into an agreement for the purpose of co-owning a renewable-generation facility or entering into a financing arrangement pursuant to subsection (15). (12) (13) “Municipality” means any Rhode Island town or city, including any agency or instrumentality thereof, with the powers set forth in title 45. (13) (14) “Net metering” means using electrical energy generated by an eligible net- metering system for the purpose of self-supplying electrical energy and power at the eligible net- metering system site, or with respect to a community remote net-metering system, for the purpose of generating net-metering credits to be applied to the electric bills of the eligible credit recipients associated with the community net-metering system. The amount so generated will thereby offset consumption at the eligible net-metering system site through the netting process established in this chapter, or with respect to a community remote net-metering system, the amounts generated in excess of that amount will result in credits being applied to the eligible credit-recipient accounts associated with the community remote net-metering system. (14) (15) “Net-metering customer” means a customer of the electric distribution company receiving and being billed for distribution service whose distribution account(s) are being net metered. (15) (16) “Net-metering financing arrangement” means arrangements entered into by a public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or a commercial or industrial customer with a private entity to facilitate the financing and operation of a net-metering resource, in which the private entity owns and operates an eligible net-metering resource on behalf of a public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or commercial or industrial customer, where: (i) The eligible net-metering resource is located on property owned or controlled by the public entity, educational institution, hospital, municipality, multi-municipal collaborative, or commercial or industrial customer as applicable; and (ii) The production from the eligible net-metering resource and primary compensation paid by the public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or commercial or industrial customer to the private entity for such production is directly tied to the consumption of electricity occurring at the designated net-metered accounts. (16) (17) “Nonprofit” means a nonprofit corporation as defined and established through chapter 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § 501(d). (17) (18) “Person” means an individual, firm, corporation, association, partnership, farm, town or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or any department of the state government, governmental agency, or public instrumentality of the state. (18) (19) “Preferred site” means a location for a renewable energy system that has had prior development, including, but not limited to: landfills, gravel pits and quarries, highway and major road median strips, brownfields, superfund sites, parking lots or sites that are designated appropriate for carports, and all rooftops including, but not limited to, residential, commercial, industrial, and municipal buildings. (19) (20) “Project” means a distinct installation of an eligible net-metering system or a community remote net-metering system. An installation will be considered distinct if it is installed in a different location, or at a different time, or involves a different type of renewable energy. Subject to the safe-harbor provisions in § 39-26.4-3(a)(1), new and distinct projects cannot be located on adjoining parcels of land within core forests, except for preferred sites. (20) (21) “Public entity” means the federal government, the state of Rhode Island, municipalities, wastewater treatment facilities, public transit agencies, or any water distributing plant or system employed for the distribution of water to the consuming public within this state including the water supply board of the city of Providence. (21) (22) “Public entity net-metering system” means a system generating renewable energy at a property owned or controlled by the public entity that is participating in a net-metering financing arrangement where the public entity has designated accounts in its name to receive net- metering credits. (22) (23) “Renewable net-metering credit” means a credit that applies to an eligible net- metering system or a community remote net-metering system up to one hundred percent (100%) of either the renewable self-generator’s usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient accounts associated with the community remote net- metering system over the applicable billing period. This credit shall be equal to the total kilowatt hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the sum of the eligible credit-recipient account usage during the billing period multiplied by the sum of the distribution company’s: (i) Last resort service kilowatt-hour charge for the rate class applicable to the net-metering customer, except that for remote public entity and multi-municipality collaborative net-metering systems that submit an application for an interconnection study on or after July 1, 2017, and community remote net-metering systems, the last resort service kilowatt-hour charge shall be net of the renewable energy standard charge or credit; (ii) Distribution kilowatt-hour charge; (iii) Transmission kilowatt-hour charge; and (iv) Transition kilowatt-hour charge. For projects after April 15, 2023, subject to the allowable two hundred seventy-five megawatts alternating current (275 MWac), under § 39-26.4-3(a)(1)(vi), the credit shall be reduced by twenty percent (20%). For all eligible net-metering systems with a nameplate capacity equal to or greater than one (1) megawatt, and all community remote net-metering systems with a nameplate capacity equal to or greater than one (1) megawatt, the net metering credit shall be calculated under § 39-26.4- 2(23)(i)-(iv), based on the charges in effect on July 1, 2026. Notwithstanding the foregoing, except for systems that have requested an interconnection study for which payment has been received by the distribution company, or if an interconnection study is not required, a completed and paid interconnection application, by December 31, 2018, the renewable net-metering credit for all remote public entity and multi-municipal collaborative net- metering systems shall not include the distribution kilowatt-hour charge be the wholesale rate as defined in subsection (8) commencing on January 1, 2060 2045 . (23) (24) “Renewable self-generator” means an electric distribution service customer of record for the eligible net-metering system or community remote net-metering system at the eligible net-metering system site which system is primarily designed to produce electrical energy for consumption by that same customer at its distribution service account(s), and/or, with respect to community remote net-metering systems, electrical energy which generates net-metering credits to be applied to offset the eligible credit-recipient account usage. (24) (25) “Third party” means and includes any person or entity, other than the renewable self-generator, who or that owns or operates the eligible net-metering system or community remote net-metering system on the eligible net-metering system site for the benefit of the renewable self- generator. (25) (26) “Third-party, net-metering financing arrangement” means the financing of eligible net-metering systems or community remote net-metering systems through lease arrangements or power/credit purchase agreements between a third party and renewable self- generator, except for those entities under a public entity net-metering financing arrangement. A third party engaged in providing financing arrangements related to such net-metering systems with a public or private entity is not a public utility as defined in § 39-1-2. SECTION 11. Section 39-31-11 of the General Laws in Chapter 39-31entitled "Affordable Clean Energy Security Act” is hereby repealed. 39-31-11. Financial remuneration and incentives. In order to achieve the purposes of this chapter, electric distribution companies shall be entitled to financial remuneration and incentives for long-term contracts for newly developed renewable energy resources, which are over and above the base rate revenue requirement established in its cost of service for distribution ratemaking. Such remuneration and incentives shall compensate the electric distribution company for accepting the financial obligation of the long- term contracts. For long-term contracts approved pursuant to this chapter on or after January 1, 2022, the financial remuneration and incentives shall be in the form of annual compensation up to one percent (1.0%) of the actual annual payments made under the contracts through December 31, 2026, for those projects that are commercially operating. For long-term contracts approved pursuant to this chapter on or after January 1, 2027, financial remuneration and incentives shall not be applied, unless otherwise granted by the commission. For any calendar year in which the electric distribution company’s actual return on equity exceeds the return on equity allowed by the commission in the electric distribution company’s last general rate case, the commission shall have the authority to adjust any or all remuneration paid to the electric distribution company pursuant to this section in order to assure that such remuneration does not result in or contribute toward the electric distribution company earning above its allowed return for such calendar year. SECTION 12. Chapter 42-14.5 of the General Laws entitled “The Rhode Island Health Care Reform Act of 2004 — Health Insurance Oversight” is hereby amended by adding thereto the following section: 42-14.5-3.2. Health spending accountability and transparency program. (a) The health insurance commissioner shall establish a health spending accountability and transparency program with the following goals that are designed to promote affordability and curb health care spending growth in Rhode Island: (1) understand and create transparency around health care costs and the drivers of cost growth; (2) create shared accountability for health care costs and cost growth among insurers, providers, and government by measuring performance against a cost growth target tied to one or more economic indicators; and (3) lessen the negative impact of rising health care costs on Rhode Island residents, businesses, and government. (b) The health insurance commissioner shall administer the health spending accountability and transparency program and shall convene and chair the following advisory bodies to provide input into the implementation of the program: (1) An affordability advisory committee comprised of individuals without direct financial interests in the health care system, including but not limited to independent health policy experts, consumers or consumer representatives, employers or employer representatives, and representatives of organized labor. The affordability advisory committee shall consist of eight (8) members, as follows: (i) two independent health policy expert members shall be appointed by the governor; (ii) one consumer representative and one employer or organized labor representative shall be appointed by the president of the senate; (iii) one consumer representative and one employer or organized labor representative shall be appointed by the speaker of the house; (iv) the secretary of health and human services or their designee; and (v) the health insurance commissioner or their designee; (2) A stakeholder advisory council that includes, but shall not be limited to, representatives of hospitals, health insurers, providers, and pharmaceutical manufacturers, in addition to independent health policy experts, consumers or consumer representatives, employers or employer representatives, and representatives of organized labor, all of whom shall be appointed by the health insurance commissioner. (c) For calendar years 2026 and 2027, the health insurance commissioner shall establish the annual health care cost growth targets pursuant to the 2023 Compact to Reduce the Growth in Health Care Costs while Improving Health Care Access, Equity, Patient Experience, and Quality in Rhode Island. (d) Not later than July 1, 2027, and every five years thereafter, the health insurance commissioner shall establish annual health care cost growth targets for the succeeding five calendar years for payers and large provider entities. In developing the health care cost growth targets, the commissioner shall minimally consider: (1) historical and forecasted changes in median household income in the state; (2) the growth rate of potential gross state product; (3) the most recent annual report prepared by the health insurance commissioner, pursuant to subsection (g) of this section; (4) recommendations from the affordability advisory committee and stakeholder advisory council established pursuant to subsections (b)(1) and (b)(2) of this section, including any information and analyses used to inform such recommendations. (e) Not later than July 1, 2027, and every five years thereafter, the health insurance commissioner, in collaboration with the executive office of health and human services, shall establish annual all-payer primary care investment targets for the succeeding five calendar years. In developing the all-payer primary care investment targets, the commissioner shall consider recommendations from the affordability advisory committee and stakeholder advisory council pursuant to subsections (b)(1) and (b)(2) of this section. (f) The health insurance commissioner shall establish requirements for payers to report data and other information necessary to calculate and monitor health care cost growth; evaluate performance against the health care cost growth target established under subsections (c) and (d) of this section; evaluate performance against the all-payer primary care investment target established under subsection (e) of this section; and measure quality, public health, and health equity performance, as defined by the health insurance commissioner. Such data shall include but not be limited to: (1) total and per capita health care expenditures; (2) total and per capita medical expenses; (3) net cost of private health insurance; (4) primary care expenditures; (5) quality performance data from the office of the health insurance commissioner’s aligned measure set, as designated by the health insurance commissioner, with input from a workgroup with expertise in quality measure alignment convened by the health insurance commissioner; and (6) performance on a set of public health and accountability measures, as designated by the health insurance commissioner, with input from the executive office of health and human services, the department of health, and a workgroup with expertise in public health convened by the health insurance commissioner. (g) The health insurance commissioner shall publish an annual report on health care spending and quality in Rhode Island which includes, but is not limited to, the following: (1) total and per capita health care spending trends at the statewide, insurance market, individual payer, and large provider entity levels, including performance against the cost growth target at each of these levels; (2) net cost of private health insurance by insurance market and payer; (3) primary care spending as a percentage of total medical expenses and annual primary care spending growth, including progress toward meeting the all-payer primary care investment target established in subsection (e) of this section; (4) an analysis of the drivers of health care spending growth by service category, as well as the relative contribution of utilization and price on the rate of growth, using data from the All- Payer Claims Database; (5) performance on select quality measures from the health insurance commissioner commissioner’s aligned measure set, pursuant to subsection (f)(5) of this section; (6) performance on a set of public health and accountability measures pursuant to subsection (f)(6) of this section; (7) status of ongoing performance improvement plans, results of performance improvement plans completed during the prior performance year, and any penalties imposed due to non-compliance with developing or implementing a performance improvement plan pursuant to subsection (i) of this section; and (8) recommendations for policy changes that may include, but not be limited to, strategies to improve affordability for Rhode Island residents, control health care spending growth while maintaining high standards for quality health care, and improve the oversight, performance and efficiency of Rhode Island’s health care system. (h) (1) The health insurance commissioner shall convene an annual public hearing following the release of the annual report required pursuant to subsection (g) of this section. Such public hearing shall involve an examination of: (i) the report most recently prepared by the health insurance commissioner pursuant to subsection (g) of this section; (ii) the expenditures of provider entities and payers, including, but not limited to, health care cost trends, primary care spending as a percentage of total medical expenses, and the factors contributing to such costs and expenditures; and (iii) any other matters that the health insurance commissioner deems relevant for the purposes of this section. (2) The health insurance commissioner may require any payer or provider entity that, for the performance year, is found to have exceeded the health care cost growth target or has failed to meet the all-payer primary care investment target, to participate in such hearing. The health insurance commissioner may further require any payer, provider entity, or other entity, including but not limited to a pharmaceutical manufacturer or pharmacy benefit manager, that is found to have significantly contributed to health care spending growth in the state, as determined by the commissioner, to participate in such hearing. Each payer, provider entity, or other entity that is required to participate in such hearing shall provide testimony on issues identified by the health insurance commissioner and provide additional information on actions taken to reduce such payer’s or entity’s contribution to future statewide health care spending or to increase such payer’s or provider entity’s primary care spending as a percentage of total medical expenses. (3) The health insurance commissioner shall allow representatives from consumer groups, employers, organized labor, community organizations, members of the public, and other interested parties to provide testimony as part of the annual public hearing. (i)(1) The health insurance commissioner may require any commercial health insurer or large provider entity that has commercial market spending growth that exceeds the health care cost growth target in any two out of three performance years to develop and implement a performance improvement plan. For the purposes of requiring a performance improvement plan, a large provider entity must have at least 120,000 attributed member months across commercial health insurers. (2) A performance improvement plan must: (i) identify key spending drivers and include concrete strategies and steps a large provider entity or commercial health insurer will take to address such spending drivers; (ii) identify an appropriate timeline for implementation, including a timeframe by which the large provider entity or commercial health insurer will be subject to an evaluation by the health insurance commissioner; and (iii) have clear measurements of success. The commissioner may provide guidance, feedback, and additional recommendations to a commercial health insurer or large provider entity in developing a performance improvement plan. (3) The health insurance commissioner shall review and approve, modify, or reject all performance improvement plans. (4) The health insurance commissioner shall monitor implementation throughout the duration of the performance improvement plan to assess compliance with the performance improvement plan’s terms and shall determine at the conclusion of the performance improvement plan whether the entity has adequately addressed the targeted spending drivers. (5) If the health insurance commissioner determines that the performance improvement plan does not adequately meet the requirements in subsection (i)(2) of this section, or that an entity has failed to comply with the terms of the performance improvement plan pursuant to subsection (i)(4), the commissioner may impose a financial penalty on the commercial health insurer or large provider entity. The health insurance commissioner shall develop criteria for imposing the financial penalty based on factors that include, but are not limited to: (i) the degree to which the large provider entity or commercial health insurer exceeded the target; (ii) the size of the large provider entity or commercial health insurer entity; 23 (iii) the good faith efforts of the large provider entity or commercial health insurer to address health care spending growth; and (iv) the financial condition of the large provider entity or commercial health insurer, according to criteria adopted by the health insurance commissioner. (6) The total cost of the health insurance commissioner’s review of a performance improvement plan pursuant to subsection (i)(3) of this section, monitoring implementation of a performance improvement plan pursuant to subsection (i)(4) of this section, and determination of compliance with a performance improvement plan pursuant to subsection (i)(4) of this section shall be borne by the commercial health insurer or large provider entity subject to the performance improvement plan, according to parameters defined by the health insurance commissioner. (j) The health insurance commissioner may establish data sharing agreements with the executive office of health and human services, department of health, and any other identified state agency to meet the requirements of this section and ensure a comprehensive view of health care spending trends. (k) The health insurance commissioner shall adopt a schedule of civil penalties determined by the severity of the violation for: (i) any payer that fails to submit required data, submits incomplete data, or otherwise obstructs data reporting pursuant to subsection (f) of this section; and (ii) any payer, provider, or other entity that fails to comply with the health insurance commissioner’s request to provide testimony during the annual public hearing pursuant to subsection (h) of this section. SECTION 13. Section 42-14.5-2.1 of the General Laws in Chapter 42-14.5 entitled “The Rhode Island Health Care Reform Act of 2004 — Health Insurance Oversight” is hereby amended to read as follows: 13 42-14.5-2.1. Definitions. As used in this chapter: (1) “Accountability standards” means measures including service processes, client and population outcomes, practice standard compliance, and fiscal integrity of social and human service providers on the individual contractual level and service type for all state contracts of the state or any subdivision or agency to include, but not limited to, the department of children, youth and families (DCYF), the department of behavioral healthcare, developmental disabilities and hospitals (BHDDH), the department of human services (DHS), the department of health (DOH), and Medicaid. This may include mandatory reporting, consolidated, standardized reporting, audits regardless of organizational tax status, and accountability dashboards of aforementioned state departments or subdivisions that are regularly shared with the public. (2) “Accountable Care Organization” means, for the purposes of § 42-14.5-3.2, a provider organization contracted with one or more payers and held accountable for the quality of health care, outcomes and total cost of care of an attributed commercial and/or Medicare population. (3) “Accountable Entity” means, for the purposes of § 42-14.5-3.2, a provider organization contracted with one or more Rhode Island Medicaid insurers and held accountable for the quality of health care, outcomes and total cost of care of an attributed Medicaid population. (2) (4) “Executive Office of Health and Human Services (EOHHS)” means the department that serves as “principal agency of the executive branch of state government” (§ 42-7.2-2) responsible for managing the departments and offices of: health (RIDOH), human services (DHS), healthy aging (OHA), veterans services (VETS), children, youth and families (DCYF), and behavioral healthcare, developmental disabilities and hospitals (BHDDH). EOHHS is also designated as the single state agency with authority to administer the Medicaid program in Rhode Island. (5) “Health care cost growth target” means the targeted annual per capita growth rate for Rhode Island’s total health care spending, expressed as the percentage growth from the prior year’s per capita spending. (6) “Large provider entity” means a provider organization contracted with one or more payers that, at a minimum, includes professional providers to whom patients can be attributed, and that collectively, during any given calendar year, has at least 60,000 attributed member months across payers in the commercial, Medicaid or Medicare market, enabling the organization to participate in total cost of care contracts, even if it is not engaged in a total cost of care contract as an Accountable Care Organization or a Medicaid Accountable Entity. (7) “Market” means the highest level of categorization of the health insurance market and shall include Medicare Fee-For-Service and Medicare Managed Care, collectively referred to as the “Medicare market;” Medicaid Fee-for-Service and Medicaid Managed Care, collectively referred to as the “Medicaid market;” and individual, self-insured, small and large group markets and student health insurance, collectively referred to as the “commercial market.” (8) “Net cost of private health insurance” means the costs to Rhode Island residents associated with the administration of private health insurance, including Medicare Managed Care and Medicaid Managed Care. It is defined as the difference between health premiums earned and benefits incurred, and consists of insurers’ costs of paying bills, advertising, sales commission and other administrative costs, premium taxes, and profits (or contributions to reserves) or losses. (9) “Payer” means any public payer, including Medicaid and Medicare; any health insurer offering Medicaid Managed Care or Medicare Managed Care plans in Rhode Island; any commercial health insurer, defined as an entity subject to the insurance laws and regulations of Rhode Island, or subject to the jurisdiction of the health insurance commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including, without limitation, an insurance company offering accident and sickness insurance, a health maintenance organization, a non-profit hospital service corporation, a non-profit medical service corporation, and a non-profit hospital and medical service corporation; and any commercial health insurer that provides benefit administration for self-insured employers or labor trusts, or both. (10) “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. (11) “Pharmacy Benefit Manager” has the same meaning as defined in § 27-19-26.2. (12) “Primary care expenditures” means all claims-based and non-claims-based payments by commercial health insurers, Medicaid, and Medicare directly to a primary care practice or accountable care organization for primary care services delivered to Rhode Island residents at a primary care site of care, which shall include a primary care outpatient setting, federally qualified health center, school-based health center, or via telehealth, but shall not include a third-party telehealth vendor that does not contract with such sites of care to deliver services. A primary care site of care also does not include urgent care centers or retail pharmacy clinics. (3) (13) “Primary care services” means, for the purposes of reporting required under § 42- 14.5-3(t), professional services rendered by primary care providers at a primary care site of care, including care management services performed in the context of team-based primary care. (14) “Provider” has the same meaning as defined in § 27-18-1.1, § 27-19-1, and § 27-20- 12 1. (4) (15) “Rate review” means the process of reviewing and reporting of specific trending factors that influence the cost of service that informs rate setting. (5) (16) “Rate setting” means the process of establishing rates for social and human service programs that are based on a thorough rate review process. (6) (17) “Social and human service program” means a social, mental health, developmental disability, child welfare, juvenile justice, prevention services, habilitative, rehabilitative, substance use disorder treatment, residential care, adult or adolescent day services, vocational, employment and training, or aging service program or accommodations purchased by the state. (7) (18) “Social and human service provider” means a provider of social and human service programs pursuant to a contract with the state or any subdivision or agency to include, but not be limited to, the department of children, youth and families (DCYF), the department of behavioral healthcare, developmental disabilities and hospitals (BHDDH), the department of human services (DHS), the department of health (DOH), and Medicaid. (8) (19) “State government and the provider network” refers to the contractual relationship between a state agency or subdivision of a state agency and private companies the state contracts with to provide the network of mandated and discretionary social and human services. (20) “Total health care expenditures” means the total medical expense incurred by Rhode Island residents for all health care services for all payers reporting to the office of the health insurance commissioner, inclusive of prescription drugs, plus their net cost of private health insurance. (21) “Total medical expense” means the sum of the allowed amount of total claims and total non-claims spending paid to providers, inclusive of prescription drugs, incurred by Rhode Island residents for all health care services. SECTION 14. Title 42 of the General Laws entitled "STATE AFFAIRS AND GOVERNMENT" is hereby amended by adding thereto the following chapter: CHAPTER 157.2 RHODE ISLAND MARKETPLACE AFFORDABILITY PROGRAM ACT OF 2026 42-157.2-1. Short title and purpose. (a) This chapter shall be known and may be cited as the "Rhode Island Marketplace Affordability Program Act of 2026." (b) The purpose of this chapter is to create a state affordability program to reduce health insurance premiums for low- and moderate-income consumers enrolled in health insurance coverage through the Rhode Island health benefit exchange. 12 42-157.2-2. Definitions. As used in this chapter: (1) "Exchange" means the Rhode Island health benefit exchange established within the department of administration by § 42-157-1. (2) "Health insurance coverage" has the same meaning as set forth in § 27-18.5-2. (3) "Individual market" has the same meaning as set forth in § 27-18.5-2. (4) “Insurer” has the same meaning as set forth in § 42-157-2. (5) "Program" means the Rhode Island individual market affordability program established by § 42-157.2-3. (6) "State" means the State of Rhode Island. 42-157.2-3. Establishment of the Rhode Island individual market affordability program. (a) The exchange is authorized to establish and administer a state-based affordability program, to be known as the Rhode Island individual market affordability program. (b) The program is intended to mitigate the impact of high and rising healthcare costs for low- and middle-income Rhode Islanders who purchase health insurance coverage through the exchange. (c) The program may provide state-based subsidies to individuals enrolled in health insurance coverage through the exchange to make health insurance coverage more accessible and affordable for individuals and households. 42-157.2-4. General program parameters. (a) State-based subsidy amounts shall be based on annual affordability percentages, following the methodology established by the exchange under § 42-157.2-5. (b) Any state-based subsidy provided by the program will be remitted by the exchange to the insurer selected by the eligible enrollee. (c) A state-based subsidy provided by the program shall be provided only to a Rhode Island resident who is determined eligible by the exchange for the federal premium tax credit authorized under § 36B of the internal revenue code and enrolled in health insurance coverage through the exchange. (1) A state-based subsidy may also be provided by the program to a Rhode Island resident whose household income exceeds the limit set forth under § 36B of the internal revenue code but meets all other eligibility criteria for the federal premium tax credit authorized under § 36B of the internal revenue code, and is enrolled in health insurance coverage through the exchange. 42-157.2-5. Adoption of methodology and annual affordability percentages. (a) Subject to appropriation, the exchange shall adopt by September 30th, and may amend, annual affordability percentages for each upcoming coverage year to implement this chapter. (b) Methodology for determining annual affordability percentages shall be set forth in regulations promulgated by the exchange, consistent with the purposes of this chapter. The exchange shall utilize this methodology to develop the annual affordability percentages. (c) Annual affordability percentages, and any amendments thereto, shall be adopted by the exchange after a duly noticed public meeting with advice from the exchange advisory board established under § 42-157-7. (1) The affordability percentages adopted for a coverage year shall be based on funds appropriated to the program for that coverage year and consistent with the parameters specified in § 42-157.2-4. (i) All unexpended or unencumbered balances of appropriations at the end of any fiscal year shall be reappropriated to the following fiscal year and made immediately available for same purposes as the former appropriations. (2) The exchange shall provide appropriate opportunities for stakeholders and the public to consult in the adoption of the affordability percentages. (3) The affordability percentages shall be tailored to maximize impact, targeting premium assistance to enrollees based on their income and premium burden after accounting for other federal and state assistance. (i) For the year beginning January 1, 2027, the affordability percentages shall prioritize households with incomes below 200% of the federal poverty level. 42-157.2-6. Rules and regulations. (a) The exchange may promulgate regulations as necessary to carry out the purposes of this chapter. (b) The requirements of the administrative procedures act (chapter 35 of title 42) shall apply for any rules or regulations established or issued by the exchange pursuant to this chapter, except for the first implementation year of the program established under this chapter. (1) For the first implementation year, the exchange shall provide opportunities for stakeholders and the public to provide input. This shall include, but is not limited to: (i) A duly noticed public meeting with advice from the exchange advisory board established under § 42-157-7; (ii) A 30-day public comment period; and (iii) Presentation by the exchange to the public of accompanying explanatory documentation outlining any proposed regulatory adoption, any significant changes thereto, and the rationale for those decisions. 42-157.2-7. Construction. (a) This chapter shall not be construed to create an entitlement, medical assistance, or public assistance program of any kind, to appropriate any funds, to require the general assembly to appropriate any funds, or to increase or decrease taxes owed by a taxpayer. (b) In construing this chapter, the regulations promulgated by the exchange pursuant to § 42-157-14 shall apply to the extent those regulations do not conflict with this chapter or regulations promulgated by the exchange pursuant to § 42-157.2-6(a). 42-157.2-8. Severability. The provisions of this chapter are severable, and if any provision hereof shall be held invalid in any circumstances, any invalidity shall not affect any other provisions or circumstances. SECTION 15. Section 2 shall take effect on July 1, 2026. The remainder of this article shall take effect upon passage. 26 ARTICLE 12 RELATING TO EFFECTIVE DATE SECTION 1. This act shall take effect as of July 1, 2026, except as otherwise provided herein. SECTION 2. The article shall take effect upon passage. ======== LC004134 ========
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