2022 -- H 7617

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LC005238

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION -- RHODE ISLAND BLACK ECONOMIC AND COMMUNITY

DEVELOPMENT FUND

     

     Introduced By: Representatives Williams, Hull, Barros, Alzate, Henries, Abney, Biah,
Morales, and Cassar

     Date Introduced: March 02, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

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

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CHAPTER 64.34

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THE RHODE ISLAND BLACK ECONOMIC AND COMMUNITY DEVELOPMENT FUND

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     42-64.34-1. Short title.

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     This act shall be known and may be cited as the "Rhode Island Black Economic and

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Community Development Fund."

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     42-64.34-2. Legislative findings.

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     The general assembly hereby finds and declares as follows:

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     (1) Centuries of discrimination and exploitation have left a majority of Black residents of

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Rhode Island much poorer than their white counterparts.

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     (2) This racial wealth gap is the product of centuries of public policies and practices that

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keep Black people from getting ahead.

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     (3) These discriminatory policies and practices created the preconditions that make Black

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people and other historically marginalized people more vulnerable to COVID-19 inequities today.

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     (4) As reported by the United States Department of Treasury American Rescue Plan Act,

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"too many Americans remain unemployed, out of the labor force, or unable to pay their bills, with

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this pain particularly acute among lower-income Americans and communities of color." Taking on

 

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COVID-19 inequities is key to closing the racial wealth gap by creating and capitalizing an impact

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investment fund through state ARPA appropriations.

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     (5) Taking on COVID-19 inequities is key to closing the racial wealth gap by creating and

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capitalizing an impact investment fund through state ARPA appropriations.

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     (6) The general assembly finds that development of a Black economic and community

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development fund is necessary to address the issues of inequity.

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     42-64.34-3. Rhode Island Black economic and community development fund

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established.

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     (a) The Rhode Island commerce corporation shall establish the Rhode Island Black

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economic community development fund (RIBECDF) as an impact investment fund built

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specifically to address economic challenges within the Black community of Rhode Island and to

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help close the racial wealth gap.

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     (b) The fund shall target Black-owned and operated businesses, community development

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organizations, early state entrepreneurs, and community investment projects that have a dedicated

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socio-economic impact within qualified census tracts with substantial Black populations.

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     (c) The measure of the fund's success shall be based upon capital equity building within

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Black residents, businesses and communities of Rhode Island that advance entrepreneurship,

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capital access and job creation.

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     (d) RIBECDF shall be organized, located, and administered by the Rhode Island commerce

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corporation pursuant to ยง 42-64-12.

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     (e) The commerce corporation shall be responsible for the establishment of the RIBECDF

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and for the adoption of rules and standards and guidelines, eligibility qualifications, investment

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guidelines, and performance measures for the fund.

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     (f) The commerce corporation shall establish an advisory board comprised of members

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representing Black business and community representation to guide corporation investment

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policies and practices.

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     (g) Investment priorities of RIBECDF shall include, but not be limited to, the following:

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     (1) Black-owned businesses;

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     (2) Entrepreneurship accelerator programs;

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     (3) Earn and learn workforce training programs;

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     (4) Real estate projects within qualified census tracts;

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     (5) Minority business development and assistance programs;

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     (6) Affordable homeownership programs;

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     (7) Micro-business grant and lending programs;

 

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     (8) Financial literacy and education programs;

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     (9) Renewable energy programs;

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     (10) Youth internship and career readiness programs.

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     42-64.34-4. Reporting requirements.

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     The commerce corporation shall annually report the status and performance of the

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RIBECDF to the general assembly on or before the first Tuesday of November of each year.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION -- RHODE ISLAND BLACK ECONOMIC AND COMMUNITY

DEVELOPMENT FUND

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     This act would establish the Rhode Island Black economic and community development

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fund (RIBECDF) under the Rhode Island commerce corporation. RIBECDF shall be an investment

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fund with its goals to be to address issues of discrimination and exploitation of the Black

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community, including the impacts on that community by the COVID-19 pandemic.

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     This act would take effect upon passage.

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