2010 -- S 2737

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LC01589

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2010

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A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - RHODE ISLAND HIGHWAY

MAINTENENCE AND PUBLIC TRANSIT TRUST FUND ACT

     Introduced By: Senator C Levesque

     Date Introduced: March 25, 2010

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

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CARRIERS" is hereby amended by adding thereto the following chapter:

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     CHAPTER 18.1

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RHODE ISLAND HIGHWAY MAINTENANCE AND PUBLIC TRANSIT TRUST FUND

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ACT

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     39-18.1-1. Short title. – This chapter shall be known and may be cited as the “Rhode

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Island Highway Maintenance and Public Transit Trust Fund Act.”

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     39-18.1-2. Legislative Findings. – The general assembly finds that:

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      (1) Rhode Island has a serious shortfall of funds available for the upkeep, maintenance

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and repair of the state’s highways, roads, and bridges.

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     (2) The health, safety, and convenience of Rhode Island’s citizens are seriously and

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adversely affected when the state’s highways, roads, and bridges are not kept in a proper state of

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upkeep, maintenance and repair.

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     (3) A critically important function of the state in maintaining the health, safety, and

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welfare of all the people of Rhode Island is to ensure the proper upkeep, maintenance and repair

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of the state’s highways, roads, and bridges.

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     (4) The Rhode Island Public Transit Authority, which depends heavily on proceeds of the

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gasoline tax for its operating budget, has suffered significantly in recent years due to high

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volatility of gasoline prices with a resulting volatility in both the level of gasoline sales and the

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amount of gasoline tax proceeds from such sales.

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     (5) Availability of convenient, affordable public transit is critically important to Rhode

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Island’s economic health and security because many Rhode Islanders depend on public transit in

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order to get their places of employment, medical appointments, schools, and to carry on their

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daily activities.

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     (6) A critically important function of the state in maintaining the health, safety, and

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welfare of all the people of Rhode Island is to ensure the continued functioning and reliability of

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public transit in Rhode Island.

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     (7) Additional stable and secure funding is absolutely necessary in order for the state to

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carry out its necessary functions, including the upkeep, maintenance and repair of the state’s

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highways, roads, and bridges, and providing for the continued functioning and reliability of

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public transit.

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     39-18.1-3. Definitions. – When used in this chapter:

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      (1) “Department of Transportation” means the department created by chapter 13 of title

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42 of the General Laws of Rhode Island.

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     (2) “Director” means the director of the Rhode Island department of transportation.

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     (3) “Highway maintenance” means the upkeep, maintenance, and repair of the state’s

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highways, roads, and bridges, including repaving or resurfacing the same; but does not mean the

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planning or construction of new highways, roads or bridges.

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     (4) “Authority” means the Rhode Island public transit authority, established by chapter

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18 of title 39 of the General Laws of Rhode Island.

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     (5) “State Planning Council” means the state planning council within the Division of

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Planning of the Department of Administration, as established by Rhode Island General Laws

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section 42-11-10.

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     (6) “Transportation Advisory Committee” means the transportation advisory committee

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that exists within the state planning council.

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     (7) “Transportation Improvement Plan” means the transportation improvement plan that

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is created and amended from time to time by the Transportation Advisory Committee.

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     39-18.1-4. Rhode Island Highway Maintenance and Public Transit Trust Fund

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Created. – (a) There is hereby created a special account in the general fund to be known as the

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“Rhode Island Highway Maintenance and Public Transit Fund.”

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      (b) The fund shall consist of all those moneys which the state may, from time to time,

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direct to the fund, including, but not necessarily limited to, moneys derived from the following

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three sources:

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     (1) There is imposed a surcharge of forty dollars ($40.00) per passenger car and light

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truck to be paid by each car and light truck owner in order to register that owner’s vehicle and

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receive license plates.

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     (2) There is imposed on each company that is engaged in the refining or distribution, or

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both, of petroleum products and that distributes such products in this state a tax at the rate of three

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percent (3%) of its gross receipts derived from the first sale of petroleum products within this

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state; provided, however, that the applicable tax rate for fuel oils, aviation fuels, and motor fuels

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subject to tax shall be converted to a cents-per-gallon rate and adjusted semi-annually by the

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director, on January 1 and July 1 of every year, to reflect the average retail price per gallon rate

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shall be rounded upward or downward to the nearest tenth of a cent. The adjusted rate shall be

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effective for tax due for months ending after that date.

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     (3) There is an imposed on each company that imports or causes to be imported, other

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than by a company subject to and having paid the tax on those imported petroleum products that

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have generated gross receipts taxable under subdivision (b)(2) of this section, petroleum products

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for use or consumption by it within the state a tax at the rate of three percent (3%) of the

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consideration given or contracted to be given for such petroleum products if the consideration

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given or contracted to be given for such deliveries made during a quarterly period exceeds three

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thousand dollars ($3,000), provided, however, that the applicable tax rate for fuel oils, aviation

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fuels, and motor fuels subject to tax shall be converted to a cents-per-gallon rate and adjusted

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semi-annually by the director, on January 1 and July 1 of every year, to reflect the average retail

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price per gallon of unleaded regular gasoline in the state. Any change in the cents-per-gallon rate

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shall be rounded upward or downward to the nearest tenth of a cent. The adjusted rate shall be

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effective for tax due for months ending after that date.

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     (c) All funds collected pursuant to this section shall be deposited in the Highway

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Maintenance and Public Transit Fund and shall be used only for the purposes set forth in this

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chapter.

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     (d) Unexpected balances and any earnings thereon shall not revert to the general fund but

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shall remain in the Highway Maintenance and Public Transit Fund. There shall be no requirement

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that moneys received into the Highway Maintenance and Public Transit Fund during any given

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calendar year or fiscal year be expended during the same calendar year or fiscal year.

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     (e) The Highway Maintenance and Public Transit Fund shall be administered by the

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director, which shall allocate and spend moneys from the fund only in accordance with the

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purposes and procedures set forth in this chapter.

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      39-18.1-5. Allocation of funds. –

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     (a) All moneys received into the Highway Maintenance and Public Transit Fund shall be

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apportioned as follows:

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     (1) Fifty percent (50%) to the Department of Transportation to be used for highway

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maintenance or commuter rail operations, or both.

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     (2) Thirty-five percent (35%) to the Authority to be used for maintaining, enhancing,

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and/or expanding existing services.

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     (3) Fifteen percent (15%) to the Department of Transportation to be used for upkeep,

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maintenance, and repair of local roads and streets. The Department of Transportation shall, after

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establishing appropriate rules pursuant to chapter 35 of title 42 of the General Laws, allocate

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these funds to the cities and towns of the state on a pro rata basis according to the miles and local

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roads and streets within the respective city or town.

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     (b) The moneys in the Highway Maintenance and Public Transit Fund to be directed to

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the Department of Transportation pursuant to subdivision (a)(1) of this section shall be allocated

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by the State Planning Council. The State Planning Council shall only authorize the expenditure of

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moneys in the Highway Maintenance and Public Transit Fund for projects that appear in the

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state’s Transportation Improvement Plan as the same has been approved by the Transportation

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Advisory Committee.

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     (c) (1) The moneys in the Highway Maintenance and Public Transit Fund to be directed

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to the Authority pursuant to subdivision (a)(2) of this section are used by the Authority for capital

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expenditures, or for routine operations and maintenance, or any combination of those.

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     (2) To the extent that the moneys in the Highway Maintenance and Public Transit Fund

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to be directed to the Authority pursuant to subdivision (a)(2) of this section are used by the

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Authority for capital expenditures, all such expenditures must first be approved by the State

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Planning Council, which shall only authorize expenditures for such capital projects that appear in

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the state’s Transportation Improvement Plan as the same has been approved by the Transportation

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Advisory Committee.

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     (3) To the extent that the moneys in the Highway Maintenance and Public Transit Fund

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to be directed to the Authority pursuant to subdivision (a)(2) of this section are used by the

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Authority for routine operations and maintenance, such expenditures shall be made in accordance

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with a multi-year plan submitted by the Authority to the State Planning Council and approved by

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the State Planning Council in advance. Such multi-year plan may designate spending for routine

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operations and maintenance by the Authority for a period of up to ten (10) years; and, once such

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multi-year plan has been approved by the State Planning Council, the Authority shall not be

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required to seek further or additional approvals from the State Planning Council for future years

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contained within such multi-year plan.

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     39-18.1-6. Severability. – If any of the provisions of this chapter or the applicability

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thereof is held invalid by any court of competent jurisdiction, the remainder of the provisions of

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this chapter shall not be affected thereby.

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     SECTION 2. This act shall take effect upon passage.

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LC01589

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - RHODE ISLAND HIGHWAY

MAINTENENCE AND PUBLIC TRANSIT TRUST FUND ACT

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     This act would create the Rhode Island Highway Maintenance and Public Transit Trust

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Fund which would impose a forty dollar ($40.00) surcharge on passenger car and light truck

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registrations to fund highway maintenance and commuter rail operations, the maintenance,

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enhancing and or expansion of existing transportation services, and for the upkeep, maintenance

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and repair of local roads and streets.

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     This act would take effect upon passage.

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LC01589

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