2022 -- S 2893 SUBSTITUTE A

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LC005738/SUB A

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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:

     SECTION 1. Sections 42-64.26-3, 42-64.26-4, 42-64.26-5 and 42-64.26-12 of the General

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

amended to read as follows:

     42-64.26-3. Definitions.

     As used in this chapter:

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

loan repayment expenses under this chapter.

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

as provided under this chapter.

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

pursuant to chapter 64 of title 42.

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

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

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

repay for attendance at a postsecondary institution of higher learning.

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

under this chapter.

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

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

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

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

an applicant to claim an award under this chapter:

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

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

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

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

located in this state throughout the eligibility period, whose employment is for work in one or more

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

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

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

     (9)(8) "Full-time employee" means a person who is employed by a business for

consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other

standard of service generally accepted by custom or practice as full-time employment, or who is

employed by a professional employer organization pursuant to an employee leasing agreement

between the business and the professional employer organization for a minimum of thirty-five (35)

hours per week, or who renders any other standard of service generally accepted by custom or

practice as full-time employment, and whose wages are subject to withholding.

     (9) "Healthcare applicant" means any applicant that meets the eligibility requirements and

works as a full-time employee as a high-demand healthcare practitioner or mental health

professional, including, but not limited to, clinical social workers and mental health counselors

licensed by the department of health, and as defined in regulations to be promulgated by the

commerce corporation, in consultation with the executive office of health and human services,

pursuant to chapter 35 of this title.

     (10) "Healthcare fund" means the "Healthcare Stay Invested in RI Wavemaker Fellowship

Fund" established pursuant to § 42-64.26-4(b).

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

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

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

previous tax year.

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

eligible graduate receives initial notice of award under this chapter.

     (13) "Fund" "STEM/design fund" refers to means the "Stay Invested in RI Wavemaker

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Fellowship Fund" established pursuant to § 42-64.26-4(a).

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

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

postsecondary institution of higher learning.

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

     42-64.26-4. Establishment of fund -- Purposes -- Composition.

     (a) There is hereby established the "Stay Invested in RI Wavemaker Fellowship Fund" (the

"fund") ("the STEM/design fund") to be administered by the commerce corporation as set forth in

this chapter.

     (b) There is hereby established the "Healthcare Stay Invested in RI Wavemaker Fellowship

Fund" (the "healthcare fund") to be administered by the commerce corporation as set forth in this

chapter.

     (b)(c) The purpose of the fund STEM/design fund and healthcare fund is to expand

employment opportunities in the state and to retain talented individuals in the state by providing

tax credits in relation to education loan repayment expenses to applicants who meet the eligibility

requirements under this chapter.

     (c)(d) The fund STEM/design fund and healthcare fund shall consist of:

     (1) Money appropriated in the state budget to the fund;

     (2) Money made available to the fund through federal programs or private contributions;

and

     (3) Any other money made available to the fund.

     (d)(e) The fund STEM/design fund shall be used to pay for the redemption of tax credits

or reimbursement to the state for tax credits applied against a taxpayer's the tax liability of any non-

healthcare applicant that received an award. The healthcare fund shall be used to pay for the

redemption of tax credits or reimbursement to the state for tax credits applied against the tax

liability of any healthcare applicant that received an award on or after July 1, 2022. The fund funds

shall be exempt from attachment, levy or any other process at law or in equity. The director of the

department of revenue shall make a requisition to the commerce corporation for funding during

any fiscal year as may be necessary to pay for the redemption of tax credits presented for

redemption or to reimburse the state for tax credits applied against a taxpayer's tax liability. The

commerce corporation shall pay from the fund such amounts as requested by the director of the

department of revenue necessary for redemption or reimbursement in relation to tax credits granted

under this chapter.

     42-64.26-5. Administration.

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

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

prescribe.

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

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

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

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

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

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

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

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

delegate the selection of the applicants that are to receive awards to a fellowship committee to be

convened by the commerce corporation and promulgate the selection procedures the fellowship

committee will use, which procedures shall require that the committee's consideration of

applications be conducted on a name-blind and employer-blind basis and that the applications and

other supporting documents received or reviewed by the fellowship committee shall be redacted of

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

applicant's employer's name, street address, and other employer-identifying information. The

commerce corporation shall determine the composition of the fellowship committee and the

selection procedures it will use in consultation with the state's chambers of commerce.

Notwithstanding the foregoing, the commerce corporation shall create and establish a committee

to evaluate any healthcare applicant for an award in the same manner as prescribed in this

subsection. The executive office of health and human services ("EOHHS") shall be represented on

the committee and provide consultation to the commerce corporation on selection procedures.

Notwithstanding EOHHS's consultation and representation in the selection of healthcare applicants,

the commerce corporation shall administer all other aspects of a healthcare applicant’s application,

award, and certification.

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

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

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

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

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

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

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.

     (d) The commerce corporation shall not commit to overall STEM/design awards in excess

of the amount contained in the STEM/design fund or to overall healthcare awards in excess of the

amount contained in the healthcare fund.

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

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

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

education loan expenses to be repaid.

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

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

under this chapter;

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

of an application for award under this chapter; and

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

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

     42-64.26-12. Sunset.

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

2022 2023.

     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 -- STAY INVESTED IN RI

WAVEMAKER FELLOWSHIP

***

     This act would expand the provisions of the Wavemaker Fellowship program to include a

healthcare fund for healthcare applicants that meet the eligibility requirements and works as a full-

time employee as a high-demand healthcare practitioner or mental health professional, including,

but not limited to, clinical social workers and mental health counselors licensed by the department

of health, and as defined in regulations to be promulgated by the commerce corporation, in

consultation with the executive office of health and human services, pursuant to chapter 35 of this

title.

     It would also provide that the Wavemaker fellowship fund shall be used to pay for the

redemption of tax credits or reimbursement to the state for tax credits applied against the tax

liability of any non-healthcare applicant that received an award. The healthcare fund shall be used

to pay for the redemption of tax credits or reimbursement to the state for tax credits applied against

the tax liability of any healthcare applicant that received an award on or after July 1, 2022.

     No incentives or credit shall be authorized after December 31, 2023.

     This act would take effect upon passage.

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