2022 -- S 2893 | |
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LC005738 | |
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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 -- STAY INVESTED IN RI | |
WAVEMAKER FELLOWSHIP | |
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Introduced By: Senators Pearson, Gallo, Goodwin, Cano, Murray, Zurier, and Seveney | |
Date Introduced: April 26, 2022 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Sections 42-64.26-3, 42-64.26-5, 42-64.26-8 and 42-64.26-12 of the General |
2 | Laws in Chapter 42-64.26 entitled "Stay Invested in RI Wavemaker Fellowship" are hereby |
3 | amended to read as follows: |
4 | 42-64.26-3. Definitions. |
5 | As used in this chapter: |
6 | (2)(1) "Applicant" means an eligible graduate who applies for a tax credit for education |
7 | loan repayment expenses under this chapter. |
8 | (3)(2) "Award" means a tax credit awarded by the commerce corporation to an applicant |
9 | as provided under this chapter. |
10 | (3) "Business" means any corporation, state bank, federal savings bank, trust company, |
11 | national banking association, bank holding company, loan and investment company, mutual |
12 | savings bank, credit union, building and loan association, insurance company, investment |
13 | company, broker-dealer company or surety company, limited liability company, partnership, sole |
14 | proprietorship, or federal agency or subsidiaries thereof. |
15 | (5)(4) "Commerce corporation" means the Rhode Island commerce corporation established |
16 | pursuant to chapter 64 of title 42. |
17 | (6)(5) "Eligible expenses" or "education loan repayment expenses" means annual higher |
18 | education loan repayment expenses, including, without limitation, principal, interest and fees, as |
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1 | may be applicable, incurred by an eligible graduate and which the eligible graduate is obligated to |
2 | repay for attendance at a postsecondary institution of higher learning. |
3 | (1)(6) "Eligible graduate" means an individual who meets the eligibility requirements |
4 | under this chapter. |
5 | (7) "Eligible high-demand STEM teacher" means a full-time content area teacher employed |
6 | by a Rhode Island local education agency and satisfying criteria proposed by the Rhode Island |
7 | commissioner of education in consultation with the commerce corporation and approved by the |
8 | commerce corporation, which at a minimum shall include provisions regarding minimum |
9 | instructional hours and qualifying high-demand STEM subject areas. |
10 | (7)(8) "Eligibility period" means a term of up to four (4) consecutive service periods |
11 | beginning with the date that an eligible graduate receives initial notice of award under this chapter |
12 | and expiring at the conclusion of the fourth service period after such date specified. |
13 | (8)(9) "Eligibility requirements" means the following qualifications or criteria required for |
14 | an applicant to claim an award under this chapter: |
15 | (i) That the applicant shall have graduated from an accredited two (2) year, four (4) year |
16 | or graduate postsecondary institution of higher learning with an associate's, bachelor's, graduate, or |
17 | post-graduate degree and at which the applicant incurred education loan repayment expenses;, and |
18 | be either: |
19 | (A)(ii) That the applicant shall be a full-time employee with a Rhode Island-based |
20 | employer located in this state throughout the eligibility period, whose employment is as a health |
21 | care professional licensed by the department of health or who works for work in one or more of the |
22 | following covered fields: life, natural or environmental sciences; computer, information or software |
23 | technology; advanced mathematics or finance; engineering; industrial design or other commercially |
24 | related design field; or medicine or medical device technology.; or |
25 | (B) A full-time employee that is a teacher or an eligible high-demand STEM teacher. |
26 | (9)(10) "Full-time employee" means a person who is employed by a business as a teacher |
27 | or an eligible high-demand STEM teacher as defined herein for consideration for a minimum of at |
28 | least thirty-five (35) hours per week, or who renders any other standard of service generally |
29 | accepted by custom or practice as full-time employment, or who is employed by a professional |
30 | employer organization pursuant to an employee leasing agreement between the business and the |
31 | professional employer organization for a minimum of thirty-five (35) hours per week, or who |
32 | renders any other standard of service generally accepted by custom or practice as full-time |
33 | employment, and whose earnings are subject to Rhode Island income tax and whose wages are |
34 | subject to withholding. |
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1 | (13)(11) "Fund" refers to the "Stay Invested in RI Wavemaker Fellowship Fund" |
2 | established pursuant to ยง 42-64.26-4. |
3 | (12) "Local education agency" means a public board of education/school committee or |
4 | other public authority legally constituted within the state for either administrative control or |
5 | direction of one or more Rhode Island public elementary schools or secondary schools, or a regional |
6 | school district, state-operated school, regional collaboration, and charter school or mayoral |
7 | academy. |
8 | (12)(13) "Rhode Island-based employer" means (i) an employer having a principal place |
9 | of business or at least fifty-one percent (51%) of its employees located in this state; or (ii) an |
10 | employer registered to conduct business in this state that reported Rhode Island tax liability in the |
11 | previous tax year. |
12 | (10)(14) "Service period" means a twelve (12) month period beginning on the date that an |
13 | eligible graduate receives initial notice of award under this chapter. |
14 | (11)(15) "Student loan" means a loan to an individual by a public authority or private lender |
15 | to assist the individual to pay for tuition, books, and living expenses in order to attend a |
16 | postsecondary institution of higher learning. |
17 | (4)(16) "Taxpayer" means an applicant who receives a tax credit under this chapter. |
18 | 42-64.26-5. Administration. |
19 | (a) Application. An eligible graduate claiming an award under this chapter shall submit to |
20 | the commerce corporation an application in the manner that the commerce corporation shall |
21 | prescribe. |
22 | (b) Upon receipt of a proper application from an applicant who meets all of the eligibility |
23 | requirements, the commerce corporation shall select applicants on a competitive basis to receive |
24 | credits for up to a maximum amount for each service period of one thousand dollars ($1,000) for |
25 | an associate's degree holder, four thousand dollars ($4,000) for a bachelor's degree holder, and six |
26 | thousand dollars ($6,000) for a graduate or post-graduate degree holder, but not to exceed the |
27 | education loan repayment expenses incurred by such taxpayer during each service period |
28 | completed, for up to four (4) consecutive service periods provided that the taxpayer continues to |
29 | meet the eligibility requirements throughout the eligibility period. The commerce corporation shall |
30 | delegate the selection of the applicants that are to receive awards to a one or more fellowship |
31 | committee or committees to be convened by the commerce corporation and promulgate the |
32 | selection procedures the fellowship committee or committees will use, which procedures shall |
33 | require that the committee's consideration of applications be conducted on a name-blind and |
34 | employer-blind basis and that the applications and other supporting documents received or |
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1 | reviewed by the fellowship committee or committees shall be redacted of the applicant's name, |
2 | street address, and other personally-identifying information as well as the applicant's employer's |
3 | name, street address, and other employer-identifying information. The commerce corporation shall |
4 | determine the composition of the fellowship committee or committees and the selection procedures |
5 | it will use in consultation with the state's chambers of commerce or the state department of |
6 | education as appropriate. |
7 | (c) The credits awarded under this chapter shall not exceed one hundred percent (100%) of |
8 | the education loan repayment expenses paid by such taxpayer during each service period completed |
9 | for up to four (4) consecutive service periods. Tax credits shall be issued annually to the taxpayer |
10 | upon proof that (i) The taxpayer has actually incurred and paid such education loan repayment |
11 | expenses; (ii) The taxpayer continues to meet the eligibility requirements throughout the service |
12 | period; (iii) The award shall not exceed the original loan amount plus any capitalized interest less |
13 | award previously claimed under this section; and (iv) The taxpayer claiming an award is current on |
14 | his or her student loan repayment obligations. |
15 | (d) In consultation with the Rhode Island department of education, and the department of |
16 | health, the commerce corporation shall set guidelines for the proportion of awards to be made to |
17 | eligible teachers, high-demand STEM teachers and licensed health care professionals. |
18 | (d)(e) The commerce corporation shall not commit to overall awards in excess of the |
19 | amount contained in the fund. |
20 | (e)(f) The commerce corporation shall reserve seventy percent (70%) of the awards issued |
21 | in a calendar year to applicants who are permanent residents of the state of Rhode Island or who |
22 | attended an institution of higher education located in Rhode Island when they incurred the |
23 | education loan expenses to be repaid. |
24 | (f)(g) In administering award, the commerce corporation shall: |
25 | (1) Require suitable proof that an applicant meets the eligibility requirements for award |
26 | under this chapter; |
27 | (2) Determine the contents of applications and other materials to be submitted in support |
28 | of an application for award under this chapter; and |
29 | (3) Collect reports and other information during the eligibility period for each award to |
30 | verify that a taxpayer continues to meet the eligibility requirements for an award. |
31 | 42-64.26-8. Carry forward and redemption of tax credits. |
32 | (a) If the amount of the tax credit allowed under this chapter exceeds the taxpayer's total |
33 | tax liability for the year in which the credit is allowed, the amount of such credit that exceeds the |
34 | taxpayer's tax liability may be carried forward and applied against the taxes imposed for the |
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1 | succeeding four (4) years, or until the full credit is used, whichever occurs first. |
2 | (b) The tax credit allowed under this chapter may be used as a credit against personal |
3 | income taxes imposed under chapter 30 of title 44. |
4 | (c) The division of taxation shall at the request of a taxpayer redeem such credits in whole |
5 | or in part for one hundred percent (100%) of the value of the tax credit. |
6 | (d) Any award issued made pursuant to this chapter after January 1, 2021, shall be exempt |
7 | from taxation under title 44 of the General Laws. |
8 | 42-64.26-12. Sunset. |
9 | No incentives or credits shall be authorized pursuant to this chapter after December 31, |
10 | 2022 2023. |
11 | SECTION 2. This act shall take effect upon passage and sunset on December 31, 2023. |
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LC005738 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- STAY INVESTED IN RI | |
WAVEMAKER FELLOWSHIP | |
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1 | This act would expand the Wavemaker Fellowship Program to include public school |
2 | teachers, including public school teachers in the high-need fields of science, technology, |
3 | engineering and mathematics, as well as health care professionals licensed by the department of |
4 | health. |
5 | This act would take effect upon passage and would sunset on December 31, 2023. |
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LC005738 | |
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