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

     

     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:

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     SECTION 1. Sections 42-64.26-3, 42-64.26-5, 42-64.26-8 and 42-64.26-12 of the General

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Laws in Chapter 42-64.26 entitled "Stay Invested in RI Wavemaker Fellowship" are hereby

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amended to read as follows:

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     42-64.26-3. Definitions.

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     As used in this chapter:

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     (2)(1) "Applicant" means an eligible graduate who applies for a tax credit for education

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loan repayment expenses under this chapter.

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     (3)(2) "Award" means a tax credit awarded by the commerce corporation to an applicant

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as provided under this chapter.

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     (3) "Business" means any corporation, state bank, federal savings bank, trust company,

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national banking association, bank holding company, loan and investment company, mutual

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savings bank, credit union, building and loan association, insurance company, investment

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company, broker-dealer company or surety company, limited liability company, partnership, sole

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proprietorship, or federal agency or subsidiaries thereof.

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     (5)(4) "Commerce corporation" means the Rhode Island commerce corporation established

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pursuant to chapter 64 of title 42.

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     (6)(5) "Eligible expenses" or "education loan repayment expenses" means annual higher

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education loan repayment expenses, including, without limitation, principal, interest and fees, as

 

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may be applicable, incurred by an eligible graduate and which the eligible graduate is obligated to

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repay for attendance at a postsecondary institution of higher learning.

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     (1)(6) "Eligible graduate" means an individual who meets the eligibility requirements

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under this chapter.

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     (7) "Eligible high-demand STEM teacher" means a full-time content area teacher employed

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by a Rhode Island local education agency and satisfying criteria proposed by the Rhode Island

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commissioner of education in consultation with the commerce corporation and approved by the

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commerce corporation, which at a minimum shall include provisions regarding minimum

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instructional hours and qualifying high-demand STEM subject areas.

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     (7)(8) "Eligibility period" means a term of up to four (4) consecutive service periods

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beginning with the date that an eligible graduate receives initial notice of award under this chapter

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and expiring at the conclusion of the fourth service period after such date specified.

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     (8)(9) "Eligibility requirements" means the following qualifications or criteria required for

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an applicant to claim an award under this chapter:

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     (i) That the applicant shall have graduated from an accredited two (2) year, four (4) year

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or graduate postsecondary institution of higher learning with an associate's, bachelor's, graduate, or

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post-graduate degree and at which the applicant incurred education loan repayment expenses;, and

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be either:

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     (A)(ii) That the applicant shall be a full-time employee with a Rhode Island-based

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employer located in this state throughout the eligibility period, whose employment is as a health

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care professional licensed by the department of health or who works for work in one or more of the

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following covered fields: life, natural or environmental sciences; computer, information or software

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technology; advanced mathematics or finance; engineering; industrial design or other commercially

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related design field; or medicine or medical device technology.; or

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     (B) A full-time employee that is a teacher or an eligible high-demand STEM teacher.

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     (9)(10) "Full-time employee" means a person who is employed by a business as a teacher

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or an eligible high-demand STEM teacher as defined herein for consideration for a minimum of at

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least thirty-five (35) hours per week, or who renders any other standard of service generally

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accepted by custom or practice as full-time employment, or who is employed by a professional

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employer organization pursuant to an employee leasing agreement between the business and the

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professional employer organization for a minimum of thirty-five (35) hours per week, or who

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renders any other standard of service generally accepted by custom or practice as full-time

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employment, and whose earnings are subject to Rhode Island income tax and whose wages are

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subject to withholding.

 

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     (13)(11) "Fund" refers to the "Stay Invested in RI Wavemaker Fellowship Fund"

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established pursuant to ยง 42-64.26-4.

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     (12) "Local education agency" means a public board of education/school committee or

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other public authority legally constituted within the state for either administrative control or

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direction of one or more Rhode Island public elementary schools or secondary schools, or a regional

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school district, state-operated school, regional collaboration, and charter school or mayoral

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academy.

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     (12)(13) "Rhode Island-based employer" means (i) an employer having a principal place

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of business or at least fifty-one percent (51%) of its employees located in this state; or (ii) an

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employer registered to conduct business in this state that reported Rhode Island tax liability in the

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previous tax year.

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     (10)(14) "Service period" means a twelve (12) month period beginning on the date that an

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eligible graduate receives initial notice of award under this chapter.

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     (11)(15) "Student loan" means a loan to an individual by a public authority or private lender

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to assist the individual to pay for tuition, books, and living expenses in order to attend a

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postsecondary institution of higher learning.

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      (4)(16) "Taxpayer" means an applicant who receives a tax credit under this chapter.

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     42-64.26-5. Administration.

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     (a) Application. An eligible graduate claiming an award under this chapter shall submit to

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the commerce corporation an application in the manner that the commerce corporation shall

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prescribe.

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     (b) Upon receipt of a proper application from an applicant who meets all of the eligibility

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requirements, the commerce corporation shall select applicants on a competitive basis to receive

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credits for up to a maximum amount for each service period of one thousand dollars ($1,000) for

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an associate's degree holder, four thousand dollars ($4,000) for a bachelor's degree holder, and six

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thousand dollars ($6,000) for a graduate or post-graduate degree holder, but not to exceed the

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education loan repayment expenses incurred by such taxpayer during each service period

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completed, for up to four (4) consecutive service periods provided that the taxpayer continues to

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meet the eligibility requirements throughout the eligibility period. The commerce corporation shall

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delegate the selection of the applicants that are to receive awards to a one or more fellowship

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committee or committees to be convened by the commerce corporation and promulgate the

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selection procedures the fellowship committee or committees will use, which procedures shall

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require that the committee's consideration of applications be conducted on a name-blind and

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employer-blind basis and that the applications and other supporting documents received or

 

LC005738 - Page 3 of 6

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reviewed by the fellowship committee or committees shall be redacted of the applicant's name,

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street address, and other personally-identifying information as well as the applicant's employer's

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name, street address, and other employer-identifying information. The commerce corporation shall

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determine the composition of the fellowship committee or committees and the selection procedures

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it will use in consultation with the state's chambers of commerce or the state department of

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education as appropriate.

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     (c) The credits awarded under this chapter shall not exceed one hundred percent (100%) of

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the education loan repayment expenses paid by such taxpayer during each service period completed

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for up to four (4) consecutive service periods. Tax credits shall be issued annually to the taxpayer

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upon proof that (i) The taxpayer has actually incurred and paid such education loan repayment

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expenses; (ii) The taxpayer continues to meet the eligibility requirements throughout the service

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period; (iii) The award shall not exceed the original loan amount plus any capitalized interest less

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award previously claimed under this section; and (iv) The taxpayer claiming an award is current on

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his or her student loan repayment obligations.

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     (d) In consultation with the Rhode Island department of education, and the department of

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health, the commerce corporation shall set guidelines for the proportion of awards to be made to

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eligible teachers, high-demand STEM teachers and licensed health care professionals.

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     (d)(e) The commerce corporation shall not commit to overall awards in excess of the

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amount contained in the fund.

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     (e)(f) The commerce corporation shall reserve seventy percent (70%) of the awards issued

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in a calendar year to applicants who are permanent residents of the state of Rhode Island or who

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attended an institution of higher education located in Rhode Island when they incurred the

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education loan expenses to be repaid.

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     (f)(g) In administering award, the commerce corporation shall:

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     (1) Require suitable proof that an applicant meets the eligibility requirements for award

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under this chapter;

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     (2) Determine the contents of applications and other materials to be submitted in support

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of an application for award under this chapter; and

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     (3) Collect reports and other information during the eligibility period for each award to

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verify that a taxpayer continues to meet the eligibility requirements for an award.

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     42-64.26-8. Carry forward and redemption of tax credits.

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     (a) If the amount of the tax credit allowed under this chapter exceeds the taxpayer's total

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tax liability for the year in which the credit is allowed, the amount of such credit that exceeds the

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taxpayer's tax liability may be carried forward and applied against the taxes imposed for the

 

LC005738 - Page 4 of 6

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succeeding four (4) years, or until the full credit is used, whichever occurs first.

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     (b) The tax credit allowed under this chapter may be used as a credit against personal

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income taxes imposed under chapter 30 of title 44.

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     (c) The division of taxation shall at the request of a taxpayer redeem such credits in whole

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or in part for one hundred percent (100%) of the value of the tax credit.

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     (d) Any award issued made pursuant to this chapter after January 1, 2021, shall be exempt

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from taxation under title 44 of the General Laws.

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     42-64.26-12. Sunset.

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     No incentives or credits shall be authorized pursuant to this chapter after December 31,

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2022 2023.

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     SECTION 2. This act shall take effect upon passage and sunset on December 31, 2023.

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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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     This act would expand the Wavemaker Fellowship Program to include public school

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teachers, including public school teachers in the high-need fields of science, technology,

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engineering and mathematics, as well as health care professionals licensed by the department of

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health.

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     This act would take effect upon passage and would sunset on December 31, 2023.

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