1 | ARTICLE 9 | |
2 | RELATING TO ECONOMIC DEVELOPMENT | |
3 | It is enacted by the General Assembly as follows: | |
4 | SECTION 1. Section 42-64.19-3 in Chapter 42-64.19 entitled “Executive Office of | |
5 | Commerce” is hereby amended to read as follows: | |
6 | 42-64.19-3. Executive Office of Commerce. | |
7 | (a) There is hereby established within the executive branch of state government an | |
8 | executive office of commerce effective February 1, 2015, to serve as the principal agency of the | |
9 | executive branch of state government for managing the promotion of commerce and the economy | |
10 | within the state and shall have the following powers and duties in accordance with the following | |
11 | schedule: | |
12 | (1) On or about February 1, 2015, to operate functions from the department of business | |
13 | regulation; | |
14 | (2) On or about April 1, 2015, to operate various divisions and functions from the | |
15 | department of administration; | |
16 | (3) On or before September 1, 2015, to provide to the Senate and the House of | |
17 | Representatives a comprehensive study and review of the roles, functions, and programs of the | |
18 | department of administration and the department of labor and training to devise recommendations | |
19 | and a business plan for the integration of these entities with the office of the secretary of commerce. | |
20 | The governor may include such recommendations in the Fiscal Year 2017 budget proposal; and | |
21 | (4) On or before July 1, 2021, to provide for the hiring of a deputy secretary of commerce | |
22 | and housing who shall report directly to the secretary of commerce. The deputy secretary of | |
23 | commerce and housing shall: | |
24 | (i) Prior to hiring, have completed and earned a minimum of a master's graduate degree in | |
25 | the field of urban planning, economics, or a related field of study or possess a juris doctor law | |
26 | degree. Preference shall be provided to candidates having earned an advanced degree consisting of | |
27 | an L.L.M. law degree or Ph.D in urban planning or economics. Qualified candidates must have | |
28 | documented five (5) years' full-time experience employed in the administration of housing policy | |
29 | and/or development; | |
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1 | (ii) Be responsible for overseeing all housing initiatives in the state of Rhode Island and | |
2 | developing a housing plan, including, but not limited to, the development of affordable housing | |
3 | opportunities to assist in building strong community efforts and revitalizing neighborhoods; | |
4 | (iii) Coordinate with all agencies directly related to any housing initiatives including, but | |
5 | not limited to, the Rhode Island housing and mortgage finance corporation, coastal resources | |
6 | management council (CRMC), and state departments including, but not limited to: the department | |
7 | of environmental management (DEM), the department of business regulation (DBR), the | |
8 | department of transportation (DOT) and statewide planning; and | |
9 | (iv) Coordinate with the housing resources commission to formulate an integrated housing | |
10 | report to include findings and recommendations to the governor, speaker of the house, senate | |
11 | president, each chamber's finance committee, and any committee whose purview is reasonably | |
12 | related to, including, but not limited to, issues of housing, municipal government, and health on or | |
13 | before December 31, 2021, and annually thereafter which report shall include, but not be limited | |
14 | to, the following: | |
15 | (A) The total number of housing units in the state with per community counts, including | |
16 | the number of Americans with Disabilities Act compliant special needs units; | |
17 | (B) The occupancy and vacancy rate of the units referenced in subsection (a)(4)(iv)(A); | |
18 | (C) The change in the number of units referenced in subsection (a)(4)(iv)(A), for each of | |
19 | the prior three (3) years in figures and as a percentage; | |
20 | (D) The number of net new units in development and number of units completed since the | |
21 | prior report; | |
22 | (E) For each municipality the number of single-family, two-family (2), and three-family | |
23 | (3) units, and multi-unit housing delineated sufficiently to provide the lay reader a useful | |
24 | description of current conditions, including a statewide sum of each unit type; | |
25 | (F) The total number of units by income type; | |
26 | (G) A projection of the number of status quo units; | |
27 | (H) A projection of the number of units required to meet housing formation trends; | |
28 | (I) A comparison of regional and other similarly situated state funding sources that support | |
29 | housing development including a percentage of private, federal, and public support; | |
30 | (J) A reporting of unit types by number of bedrooms for rental properties including an | |
31 | accounting of all: | |
32 | (I) Single-family units; | |
33 | (II) Accessory dwelling units; | |
34 | (III) Two-family (2) units; | |
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1 | (IV) Three-family (3) units; | |
2 | (V) Multi-unit sufficiently delineated units; | |
3 | (VI) Mixed use sufficiently delineated units; and | |
4 | (VII) Occupancy and vacancy rates for the prior three (3) years; | |
5 | (K) A reporting of unit types by ownership including an accounting of all: | |
6 | (I) Single-family units; | |
7 | (II) Accessory dwelling units; | |
8 | (III) Two-family (2) units; | |
9 | (IV) Three-family (3) units; | |
10 | (V) Multi-unit sufficiently delineated units; | |
11 | (VI) Mixed use sufficiently delineated units; and | |
12 | (VII) Occupancy and vacancy rates for the prior three (3) years; | |
13 | (L) A reporting of the number of applications submitted or filed for each community | |
14 | according to unit type and an accounting of action taken with respect to each application to include, | |
15 | approved, denied, appealed, approved upon appeal, and if approved, the justification for each | |
16 | approval; | |
17 | (M) A reporting of permits for each community according to affordability level that were | |
18 | sought, approved, denied, appealed, approved upon appeal, and if approved, the justification for | |
19 | each approval; | |
20 | (N) A reporting of affordability by municipality that shall include the following: | |
21 | (I) The percent and number of units of extremely low-, very low-, low-, moderate-, fair- | |
22 | market rate, and above-market-rate units; including the average and median costs of those units; | |
23 | (II) The percent and number of units of extremely low-, very low-, low-, and moderate- | |
24 | income housing units required to satisfy the ten percent (10%) requirement pursuant to chapter 24 | |
25 | of title 45; including the average and median costs of those units; | |
26 | (III) The percent and number of units for the affordability levels above moderate-income | |
27 | housing, including a comparison to fair-market rent and fair-market homeownership; including the | |
28 | average and median costs of those units; | |
29 | (IV) The percentage of cost burden by municipality with population equivalent; | |
30 | (V) The percentage and number of home financing sources, including all private, federal, | |
31 | state, or other public support; and | |
32 | (VI) The cost growth for each of the previous five (5) years by unit type at each | |
33 | affordability level, by unit type; | |
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1 | (O) A reporting of municipal healthy housing stock by unit type and number of bedrooms | |
2 | and providing an assessment of the state's existing housing stock and enumerating any risks to the | |
3 | public health from that housing stock, including, but not limited to: the presence of lead, mold, safe | |
4 | drinking water, disease vectors (insects and vermin), and other conditions that are an identifiable | |
5 | health detriment. Additionally, the report shall provide the percentage of the prevalence of health | |
6 | risks by age of the stock for each community by unit type and number of bedrooms; and | |
7 | (P) A recommendation shall be included with the report required under this section that | |
8 | shall provide consideration to any and all populations, ethnicities, income levels, and other relevant | |
9 | demographic criteria determined by the deputy secretary, and with regard to any and all of the | |
10 | criteria enumerated elsewhere in the report separately or in combination, provide recommendations | |
11 | to resolve any issues that provide an impediment to the development of housing, including specific | |
12 | data and evidence in support of the recommendation. All data and methodologies used to present | |
13 | evidence are subject to review and approval of the chief of revenue analysis, and that approval shall | |
14 | include an attestation of approval by the chief to be included in the report. | |
15 | (b) In this capacity, the office shall: | |
16 | (1) Lead or assist state departments and coordinate business permitting processes in order | |
17 | to: | |
18 | (i) Improve the economy, efficiency, coordination, and quality of the business climate in | |
19 | the state; | |
20 | (ii) Design strategies and implement best practices that foster economic development and | |
21 | growth of the state's economy; | |
22 | (iii) Maximize and leverage funds from all available public and private sources, including | |
23 | federal financial participation, grants, and awards; | |
24 | (iv) Increase public confidence by conducting customer centric operations whereby | |
25 | commercial enterprise are supported and provided programs and services that will grow and nurture | |
26 | the Rhode Island economy; and | |
27 | (v) Be the state's lead agency for economic development. | |
28 | (2) Provide oversight and coordination of all housing initiatives in the state of Rhode | |
29 | Island. | |
30 | (3) Provide oversight and coordination of all broadband and digital equity initiatives in the | |
31 | state of Rhode Island, including, but not limited to, the following: | |
32 | (i) Creating a statewide broadband strategic plan which shall include goals and strategies | |
33 | related to internet access in the state. Such a plan shall include, but not be limited to considerations | |
34 | such as speed, latency, affordability, access, sustainability, and digital equity and which shall be | |
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1 | submitted to the Governor, the speaker of the house of representatives, and the president of the | |
2 | senate on or before December 31, 2022 and shall be updated every five years thereafter; | |
3 | (ii) Coordinating with all agencies and quasi-agencies of the state relating to any broadband | |
4 | initiative, including, but not limited to the Rhode Island department of business regulation, Rhode | |
5 | Island division of information and technology, Rhode Island emergency management agency, | |
6 | Rhode Island infrastructure bank, the division of public utilities and carriers, the department of | |
7 | education, the department of environmental management, RI housing, the office of library and | |
8 | information services, the department of labor and training, the division of purchasing, and the office | |
9 | of healthy aging; | |
10 | (iii) Hiring a statewide broadband coordinator and supporting staff contingent on | |
11 | availability of funds, whether through the Rhode Island commerce corporation, department of | |
12 | business regulation, the executive office of commerce, or a combination, to carry out the duties | |
13 | herein; | |
14 | (iv) Convening at least quarterly a broadband advisory committee, which is hereby | |
15 | established, and shall include no more than thirteen members. The members of the broadband | |
16 | advisory committee shall be appointed by the governor, one of whom shall be appointed in | |
17 | consultation with the speaker of the house and one of whom shall be appointed in consultation with | |
18 | the president of the senate. The broadband advisory committee shall be subject to the provisions of | |
19 | R.I. Gen. Laws § 42-46-1, et seq. and shall advise the executive office of commerce on broadband | |
20 | implementation efforts undertaken by the agency including but not limited to the development of a | |
21 | state strategic plan and broadband-related investment strategies. The broadband advisory | |
22 | committee will additionally invite telecommunications/IT experts and broadband stakeholders to | |
23 | inform the committee. | |
24 | (v) Creating grant and other programs to allow localities, community anchor institutions, | |
25 | and public-private partnerships to invest in both middle-mile and last-mile broadband infrastructure | |
26 | improvements. The executive office of commerce may appoint any state agency or quasi-state | |
27 | agency to administer such program or programs. The executive office of commerce or any state | |
28 | agency or quasi-state agency charged with administering such grant and other programs is | |
29 | authorized to promulgate rules and regulations pursuant to § 42-35-3 of the State’s general laws | |
30 | that set forth the programs’ goals, investment criteria, principles, and parameters. The executive | |
31 | office of commerce or any state agency or quasi-state agency charged with administering such grant | |
32 | and other programs is authorized to create funds to hold any federal or state appropriation for such | |
33 | grant or other program. Such funds shall be established consistent with federal or state law that | |
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1 | makes the appropriation. Any such funds shall be exempt from attachment, levy, or any other | |
2 | process at law or in equity. | |
3 | (vi) Creating or otherwise administering programs, projects, initiatives, or mapping efforts | |
4 | to further the investment in and development of broadband and digital equity in the State. | |
5 | (c) The office shall include the office of regulatory reform and other administration | |
6 | functions that promote, enhance, or regulate various service and functions in order to promote the | |
7 | reform and improvement of the regulatory function of the state. | |
8 | SECTION 2. Sections 42-64.20-5 and 42-64.20-10 of the General Laws in Chapter 42- | |
9 | 64.20 entitled “Rebuild Rhode Island Tax Credit Act” are hereby amended to read as follows: | |
10 | 42-64.20-5. Tax credits. | |
11 | (a) An applicant meeting the requirements of this chapter may be allowed a credit as set | |
12 | forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of | |
13 | the general laws for a qualified development project. | |
14 | (b) To be eligible as a qualified development project entitled to tax credits, an applicant's | |
15 | chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the | |
16 | time of application, that: | |
17 | (1) The applicant has committed a capital investment or owner equity of not less than | |
18 | twenty percent (20%) of the total project cost; | |
19 | (2) There is a project financing gap in which after taking into account all available private | |
20 | and public funding sources, the project is not likely to be accomplished by private enterprise | |
21 | without the tax credits described in this chapter; and | |
22 | (3) The project fulfills the state's policy and planning objectives and priorities in that: | |
23 | (i) The applicant will, at the discretion of the commerce corporation, obtain a tax | |
24 | stabilization agreement from the municipality in which the real estate project is located on such | |
25 | terms as the commerce corporation deems acceptable; | |
26 | (ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied | |
27 | by at least one business employing at least 25 full-time employees after construction or such | |
28 | additional full-time employees as the commerce corporation may determine; (B) Is a multi-family | |
29 | residential development in a new, adaptive reuse, certified historic structure, or recognized | |
30 | historical structure consisting of at least 20,000 square feet and having at least 20 residential units | |
31 | in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic | |
32 | structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at | |
33 | least one business, subject to further definition through rules and regulations promulgated by the | |
34 | commerce corporation; and | |
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1 | (iii) Involves a total project cost of not less than $ 5,000,000, except for a qualified | |
2 | development project located in a hope community or redevelopment area designated under § 45- | |
3 | 32-4 in which event the commerce corporation shall have the discretion to modify the minimum | |
4 | project cost requirement. | |
5 | (c) The commerce corporation shall develop separate, streamlined application processes | |
6 | for the issuance of rebuild RI tax credits for each of the following: | |
7 | (1) Qualified development projects that involve certified historic structures; | |
8 | (2) Qualified development projects that involve recognized historical structures; | |
9 | (3) Qualified development projects that involve at least one manufacturer; and | |
10 | (4) Qualified development projects that include affordable housing or workforce housing. | |
11 | (d) Applications made for a historic structure or recognized historic structure tax credit | |
12 | under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of | |
13 | taxation, at the expense of the commerce corporation, shall provide communications from the | |
14 | commerce corporation to those who have applied for and are in the queue awaiting the offer of tax | |
15 | credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax | |
16 | credit program. | |
17 | (e) Applicants (1) Who have received the notice referenced in subsection (d) above and | |
18 | who may be eligible for a tax credit pursuant to chapter 33.6 of title 44, (2) Whose application | |
19 | involves a certified historic structure or recognized historical structure, or (3) Whose project is | |
20 | occupied by at least one manufacturer shall be exempt from the requirements of subsections | |
21 | (b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants: | |
22 | (i) The division of taxation shall remain responsible for determining the eligibility of an | |
23 | applicant for tax credits awarded under chapter 33.6 of title 44; | |
24 | (ii) The commerce corporation shall retain sole authority for determining the eligibility of | |
25 | an applicant for tax credits awarded under this chapter; and | |
26 | (iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the | |
27 | annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this | |
28 | subsection (e). | |
29 | (f) Maximum project credit. | |
30 | (1) For qualified development projects, the maximum tax credit allowed under this chapter | |
31 | shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to | |
32 | close a project financing gap (after taking into account all other private and public funding sources | |
33 | available to the project), as determined by the commerce corporation. | |
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1 | (2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax | |
2 | exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000) | |
3 | for any qualified development project under this chapter; except as provided in subsection (f)(3) of | |
4 | this section; provided however, any qualified development project that exceeds the project cap upon | |
5 | passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further | |
6 | increased. No building or qualified development project to be completed in phases or in multiple | |
7 | projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all | |
8 | phases or projects involved in the rehabilitation of the building. Provided, however, that for | |
9 | 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 | |
11 | in § 42-64.24-3(6) as a separate, qualified development project from a qualified development | |
12 | project by a tenant or owner of a commercial condominium or similar legal interest including | |
13 | leasehold improvement, fit out, and capital investment. Such qualified development project by a | |
14 | tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be | |
15 | exempted from subsection (f)(1)(i) of this section. | |
16 | (3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax | |
17 | exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars | |
18 | ($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter | |
19 | into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that | |
20 | project is approved for credits pursuant to this chapter by the commerce corporation. | |
21 | (g) Credits available under this chapter shall not exceed twenty percent (20%) of the project | |
22 | cost, provided, however, that the applicant shall be eligible for additional tax credits of not more | |
23 | than ten percent (10%) of the project cost, if the qualified development project meets any of the | |
24 | following criteria or other additional criteria determined by the commerce corporation from time | |
25 | to time in response to evolving economic or market conditions: | |
26 | (1) The project includes adaptive reuse or development of a recognized historical structure; | |
27 | (2) The project is undertaken by or for a targeted industry; | |
28 | (3) The project is located in a transit-oriented development area; | |
29 | (4) The project includes residential development of which at least twenty percent (20%) of | |
30 | the residential units are designated as affordable housing or workforce housing; | |
31 | (5) The project includes the adaptive reuse of property subject to the requirements of the | |
32 | industrial property remediation and reuse act, § 23-19.14-1 et seq.; or | |
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1 | (6) The project includes commercial facilities constructed in accordance with the minimum | |
2 | environmental and sustainability standards, as certified by the commerce corporation pursuant to | |
3 | Leadership in Energy and Environmental Design or other equivalent standards. | |
4 | (h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter, | |
5 | inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed | |
6 | two hundred ten million dollars ($210,000,000)two hundred twenty five million dollars | |
7 | ($225,000,000), excluding any tax credits allowed pursuant to subsection (f)(3) of this section. | |
8 | (i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the | |
9 | project is placed in service. | |
10 | (j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer | |
11 | in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent | |
12 | (15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable | |
13 | year. | |
14 | (k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer's total | |
15 | tax liability for the year in which the relevant portion of the credit is allowed, the amount that | |
16 | exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for | |
17 | the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed | |
18 | to a partnership, a limited-liability company taxed as a partnership, or multiple owners of property | |
19 | shall be passed through to the persons designated as partners, members, or owners respectively pro | |
20 | rata or pursuant to an executed agreement among persons designated as partners, members, or | |
21 | owners documenting an alternate distribution method without regard to their sharing of other tax | |
22 | or economic attributes of such entity. | |
23 | (l) The commerce corporation, in consultation with the division of taxation, shall establish, | |
24 | by regulation, the process for the assignment, transfer, or conveyance of tax credits. | |
25 | (m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer | |
26 | for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from | |
27 | taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller's tax calculation | |
28 | for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds, | |
29 | without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a | |
30 | natural person, the seller's tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable, | |
31 | for the year of revocation, or adjustment, shall be increased by including the total amount of the | |
32 | sales proceeds without proration. | |
33 | (n) The tax credit allowed under this chapter may be used as a credit against corporate | |
34 | income taxes imposed under chapter 11, 13, 14, or 17, of title 44, or may be used as a credit against | |
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1 | personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such | |
2 | as a partnership, a limited-liability company taxed as a partnership, or multiple owners of property. | |
3 | (o) In the case of a corporation, this credit is only allowed against the tax of a corporation | |
4 | included in a consolidated return that qualifies for the credit and not against the tax of other | |
5 | corporations that may join in the filing of a consolidated tax return. | |
6 | (p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem | |
7 | this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division | |
8 | of taxation, in consultation with the commerce corporation, shall establish by regulation a | |
9 | redemption process for tax credits. | |
10 | (q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the | |
11 | commerce corporation, be exempt from sales and use taxes imposed on the purchase of the | |
12 | following classes of personal property only to the extent utilized directly and exclusively in the | |
13 | project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles; | |
14 | or (2) Other materials, including construction materials and supplies, that are depreciable and have | |
15 | a useful life of one year or more and are essential to the project. | |
16 | (r) The commerce corporation shall promulgate rules and regulations for the administration | |
17 | and certification of additional tax credit under subsection (e), including criteria for the eligibility, | |
18 | evaluation, prioritization, and approval of projects that qualify for such additional tax credit. | |
19 | (s) The commerce corporation shall not have any obligation to make any award or grant | |
20 | any benefits under this chapter. | |
21 | 42-64.20-10. Sunset. | |
22 | No credits shall be authorized to be reserved pursuant to this chapter after December 31, | |
23 | 2022 2023. | |
24 | SECTION 3. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled “Rhode | |
25 | Island Tax Increment Financing” is hereby amended to read as follows: | |
26 | 42-64.21-9. Sunset. | |
27 | The commerce corporation shall enter into no agreement under this chapter after December | |
28 | 31, 2022 2023. | |
29 | SECTION 4. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled “Tax | |
30 | Stabilization Incentive” is hereby amended to read as follows: | |
31 | 42-64.22-15. Sunset. | |
32 | The commerce corporation shall enter into no agreement under this chapter after December | |
33 | 31, 2022 2023. | |
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1 | SECTION 5. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled “First | |
2 | Wave Closing Fund Act” is hereby amended to read as follows: | |
3 | 42-64.23-8. Sunset. | |
4 | No financing shall be authorized to be reserved pursuant to this chapter after December 31, | |
5 | 2022 2023. | |
6 | SECTION 6. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled “I-195 | |
7 | Redevelopment Project Fund Act” is hereby amended as follows: | |
8 | 42-64.24-8. Sunset. | |
9 | No funding, credits, or incentives shall be authorized or authorized to be reserved pursuant | |
10 | to this chapter after December 31, 2022 2023. | |
11 | SECTION 7. Section 42-64.25-14 of the General Laws in Chapter 42-64.25 entitled “Small | |
12 | Business Assistance Program Act” is hereby amended as follows: | |
13 | 42-64.25-14. Sunset. | |
14 | No grants, funding, or incentives shall be authorized pursuant to this chapter after | |
15 | December 31, 2022 2023. | |
16 | SECTION 8. Sections 42-64.26-3, 42-64.26-4, 42-64.26-5, and 42-64.26-12 of the | |
17 | General Laws in Chapter 42-64.26 entitled “Stay Invested in RI Wavemaker Fellowship” are | |
18 | hereby amended to read as follows: | |
19 | 42-64.26-3. Definitions. | |
20 | As used in this chapter: | |
21 | (1) “Eligible graduate” means an individual who meets the eligibility requirements under | |
22 | this chapter. | |
23 | (2) “Applicant” means an eligible graduate who applies for a tax credit for education loan | |
24 | repayment expenses under this chapter. | |
25 | (3) “Award” means a tax credit awarded by the commerce corporation to an applicant as | |
26 | provided under this chapter. | |
27 | (4) “Taxpayer” means an applicant who receives a tax credit under this chapter. | |
28 | (5) “Commerce corporation” means the Rhode Island commerce corporation established | |
29 | pursuant to chapter 64 of title 42. | |
30 | (6) “Eligible expenses” or “education loan repayment expenses” means annual higher | |
31 | education loan repayment expenses, including, without limitation, principal, interest and fees, as | |
32 | may be applicable, incurred by an eligible graduate and which the eligible graduate is obligated to | |
33 | repay for attendance at a postsecondary institution of higher learning. | |
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1 | (7) “Eligibility period” means a term of up to four (4) consecutive service periods | |
2 | beginning with the date that an eligible graduate receives initial notice of award under this chapter | |
3 | and expiring at the conclusion of the fourth service period after such date specified. | |
4 | (8) “Eligibility requirements” means the following qualifications or criteria required for an | |
5 | applicant to claim an award under this chapter: | |
6 | (i) That the applicant shall have graduated from an accredited two (2) year, four (4) year | |
7 | or graduate postsecondary institution of higher learning with an associate’s, bachelor’s, graduate, | |
8 | or post-graduate degree and at which the applicant incurred education loan repayment expenses; | |
9 | (ii) That the applicant shall be a full-time employee with a Rhode Island-based employer | |
10 | located in this state throughout the eligibility period, whose employment is for work in one or more | |
11 | of the following covered fields: life, natural or environmental sciences; computer, information or | |
12 | software technology; advanced mathematics or finance; engineering; industrial design or other | |
13 | commercially related design field; or medicine or medical device technology. | |
14 | (9) “Full-time employee” means a person who is employed by a business for consideration | |
15 | for a minimum of at least thirty-five (35) hours per week, or who renders any other standard of | |
16 | service generally accepted by custom or practice as full-time employment, or who is employed by | |
17 | a professional employer organization pursuant to an employee leasing agreement between the | |
18 | business and the professional employer organization for a minimum of thirty-five (35) hours per | |
19 | week, or who renders any other standard of service generally accepted by custom or practice as | |
20 | full-time employment, and whose wages are subject to withholding. | |
21 | (10) “Healthcare applicant” means any applicant that meets the eligibility requirements and | |
22 | works as a full-time employee as a high-demand healthcare practitioner, as defined in regulations | |
23 | to be promulgated by the commerce corporation, in consultation with the executive office of health | |
24 | and human services, pursuant to chapter 35 of this title. | |
25 | (1011) “Service period” means a twelve (12) month period beginning on the date that an | |
26 | eligible graduate receives initial notice of award under this chapter. | |
27 | (1112) “Student loan” means a loan to an individual by a public authority or private lender | |
28 | to assist the individual to pay for tuition, books, and living expenses in order to attend a | |
29 | postsecondary institution of higher learning. | |
30 | (1213) “Rhode Island-based employer” means (i) an employer having a principal place of | |
31 | business or at least fifty-one percent (51%) of its employees located in this state; or (ii) an employer | |
32 | registered to conduct business in this state that reported Rhode Island tax liability in the previous | |
33 | tax year. | |
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1 | (1314) “STEM/designFund fund” refers to the “Stay Invested in RI Wavemaker Fellowship | |
2 | Fund” established pursuant to § 42-64.26-4(a). | |
3 | (15) “Healthcare fund” refers to the “Healthcare Stay Invested in RI Wavemaker | |
4 | Fellowship Fund” established pursuant to § 42-64.26-4(b). | |
5 | 42-64.26-4. Establishment of fund — Purposes — Composition. | |
6 | (a) There is hereby established the "Stay Invested in RI Wavemaker Fellowship Fund" (the | |
7 | “fund”) to be administered by the commerce corporation as set forth in this chapter. | |
8 | (b) There is hereby established the “Healthcare Stay Invested in RI Wavemaker Fellowship | |
9 | Fund” to be administered by the commerce corporation as set forth in this chapter. | |
10 | (bc) The purpose of the fund STEM/design fund and healthcare fund is to expand | |
11 | employment opportunities in the state and to retain talented individuals in the state by providing | |
12 | tax credits in relation to education loan repayment expenses to applicants who meet the eligibility | |
13 | requirements under this chapter. | |
14 | (cd) The fund STEM/design fund and healthcare fund shall consist of: | |
15 | (1) Money appropriated in the state budget to the fund; | |
16 | (2) Money made available to the fund through federal programs or private contributions; | |
17 | and | |
18 | (3) Any other money made available to the fund. | |
19 | (de) The fund STEM/design fund shall be used to pay for the redemption of tax credits or | |
20 | reimbursement to the state for tax credits applied against a taxpayer's the tax liability of any non- | |
21 | healthcare applicant that received an award. The healthcare fund shall be used to pay for the | |
22 | redemption of tax credits or reimbursement to the state for tax credits applied against the tax | |
23 | liability of any healthcare applicant that received an award on or after July 1, 2022. The funds shall | |
24 | be exempt from attachment, levy or any other process at law or in equity. The director of the | |
25 | department of revenue shall make a requisition to the commerce corporation for funding during | |
26 | any fiscal year as may be necessary to pay for the redemption of tax credits presented for | |
27 | redemption or to reimburse the state for tax credits applied against a taxpayer's tax liability. The | |
28 | commerce corporation shall pay from the funds such amounts as requested by the director of the | |
29 | department of revenue necessary for redemption or reimbursement in relation to tax credits granted | |
30 | under this chapter. | |
31 | 42-64.26-5. Administration. | |
32 | (a) Application. An eligible graduate claiming an award under this chapter shall submit to | |
33 | the commerce corporation an application in the manner that the commerce corporation shall | |
34 | prescribe. | |
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1 | (b) Upon receipt of a proper application from an applicant who meets all of the eligibility | |
2 | requirements, the commerce corporation shall select applicants on a competitive basis to receive | |
3 | credits for up to a maximum amount for each service period of one thousand dollars ($1,000) for | |
4 | an associate’s degree holder, four thousand dollars ($4,000) for a bachelor’s degree holder, and six | |
5 | thousand dollars ($6,000) for a graduate or post-graduate degree holder, but not to exceed the | |
6 | education loan repayment expenses incurred by such taxpayer during each service period | |
7 | completed, for up to four (4) consecutive service periods provided that the taxpayer continues to | |
8 | meet the eligibility requirements throughout the eligibility period. The commerce corporation shall | |
9 | delegate the selection of the applicants that are to receive awards to a fellowship committee to be | |
10 | convened by the commerce corporation and promulgate the selection procedures the fellowship | |
11 | committee will use, which procedures shall require that the committee’s consideration of | |
12 | applications be conducted on a name-blind and employer-blind basis and that the applications and | |
13 | other supporting documents received or reviewed by the fellowship committee shall be redacted of | |
14 | the applicant’s name, street address, and other personally-identifying information as well as the | |
15 | applicant’s employer’s name, street address, and other employer-identifying information. The | |
16 | commerce corporation shall determine the composition of the fellowship committee and the | |
17 | selection procedures it will use in consultation with the state’s chambers of commerce. | |
18 | Notwithstanding the foregoing, the commerce corporation shall create and establish a committee | |
19 | to evaluate any healthcare applicant for an award in the same manner as prescribed in this | |
20 | paragraph. The executive office of health and human services (“EOHHS”) shall be represented on | |
21 | the committee and provide consultation to the commerce corporation on selection procedures. | |
22 | Notwithstanding EOHHS’s consultation and representation in the selection of healthcare | |
23 | applicants, the commerce corporation shall administer all other aspects of a healthcare applicant’s | |
24 | application, award, and certification. | |
25 | (c) The credits awarded under this chapter shall not exceed one hundred percent (100%) | |
26 | of the education loan repayment expenses incurred by such taxpayer during each service period | |
27 | completed for up to four (4) consecutive service periods. Tax credits shall be issued annually to the | |
28 | taxpayer upon proof that (i) the taxpayer has actually incurred and paid such education loan | |
29 | repayment expenses; (ii) the taxpayer continues to meet the eligibility requirements throughout the | |
30 | service period; (iii) The award shall not exceed the original loan amount plus any capitalized | |
31 | interest less award previously claimed under this section; and (iv) that the taxpayer claiming an | |
32 | award is current on his or her student loan repayment obligations. | |
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1 | (d) The commerce corporation shall not commit to overall STEM/design awards in excess | |
2 | of the amount contained in the commerce STEM/design fund or to overall healthcare awards in | |
3 | excess of the amount contained in the healthcare fund. | |
4 | (e) The commerce corporation shall reserve seventy percent (70%) of the awards issued in | |
5 | a calendar year to applicants who are permanent residents of the state of Rhode Island or who | |
6 | attended an institution of higher education located in Rhode Island when they incurred the | |
7 | education loan expenses to be repaid. | |
8 | (f) In administering award, the commerce corporation shall: | |
9 | (1) Require suitable proof that an applicant meets the eligibility requirements for award | |
10 | under this chapter; | |
11 | (2) Determine the contents of applications and other materials to be submitted in support | |
12 | of an application for award under this chapter; and | |
13 | (3) Collect reports and other information during the eligibility period for each award to | |
14 | verify that a taxpayer continues to meet the eligibility requirements for an award. | |
15 | 42-64.26-12. Sunset. | |
16 | No incentives or credits shall be authorized pursuant to this chapter after December 31, | |
17 | 2022 2023. | |
18 | SECTION 9. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled “Main | |
19 | Street Rhode Island Streetscape Improvement Fund” is hereby amended as follows: | |
20 | 42-64.27-6. Sunset. | |
21 | No incentives shall be authorized pursuant to this chapter after December 31, 2022 2023. | |
22 | SECTION 10. Section 42-64.28-10 of the General Laws in Chapter 42-64.28 entitled | |
23 | “Innovation Initiative” is hereby amended as follows: | |
24 | 42-64.28-10. Sunset. | |
25 | No vouchers, grants, or incentives shall be authorized pursuant to this chapter after | |
26 | December 31, 2022 2023. | |
27 | SECTION 11. Section 42-64.29-8 of the General Laws in Chapter 42-64.29 entitled | |
28 | “Industry Cluster Grants” is hereby amended as follows: | |
29 | 42-64.29-8. Sunset. | |
30 | No grants or incentives shall be authorized to be reserved pursuant to this chapter after | |
31 | June 30, 2021 December 31, 2023. | |
32 | SECTION 12. Section 42-64.31-4 of the General Laws in Chapter 42-64.31 entitled “High | |
33 | School, College, and Employer Partnerships” is hereby amended as follows: | |
34 | 42-64.31-4. Sunset. | |
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1 | No grants shall be authorized pursuant to this chapter after December 31, 2022 2023. | |
2 | SECTION 13. Section 42-64.32-6 of the General Laws in Chapter 42-64.32 entitled “Air | |
3 | Service Development Fund” is hereby amended as follows: | |
4 | 42-64.32-6. Sunset. | |
5 | No grants, credits, or incentives shall be authorized or authorized to be reserved pursuant | |
6 | to this chapter after December 31, 2022 2023. | |
7 | SECTION 14. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled “Rhode | |
8 | Island Qualified Jobs Incentive Act of 2015” is hereby amended as follows: | |
9 | 44-48.3-14. Sunset. | |
10 | No credits shall be authorized to be reserved pursuant to this chapter after December 31, | |
11 | 2022 2023. | |
12 | SECTION 15. This Article shall take effect upon passage. | |
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