Chapter 390

2004 -- S 2774 SUBSTITUTE A

Enacted 07/05/04

A N A C T

RELATING TO TOWNS AND CITIES

Introduced By: Senators Ruggerio, Ciccone, Felag, and Goodwin

Date Introduced: February 11, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 45-33.2-4 and 45-33.2-18 of the General Laws in Chapter 45-33.2

entitled "Tax Increment Financing" are hereby amended to read as follows:

45-33.2-4. Adoption of project plan. -- The legislative body of any city or town may

adopt a project plan if a finding is made to the effect that:

      (1) With respect to any portion of the project: (i) providing municipal or other public

facilities or land therefor, under the definition of "project" under section 45-33.2-3(2)(i) or (ii); or

(ii) constituting a project under section 45-33.2-3(2), that the facilities, programs and other

assistance are needed and that the financing of that portion of the project in accordance with the

plan is in the public interest; or

      (2) With respect to any portion of the project providing land for housing for persons or

families of low income, that there is not within the city or town an adequate supply of low rent

housing for persons or families of low income generally, or for veterans, or for persons who are

elderly or disabled, as the case may be, available for rents they can afford to pay, that the rents

which those persons or families can afford to pay would not warrant private enterprise providing

housing for them, and that the financing of that portion of the project in accordance with the plan

is in the public interest; or

      (3) With respect to any portion of the project providing financing under section 45-33.2-

5(13), but only to the extent not described in subdivision (1), that unemployment or the threat of

unemployment exists in the city or town or that security against future unemployment is required,

that the project is needed, that it will provide employment or security against loss of employment,

including the approximate number of new jobs that should be created or preserved, construction

and nonconstruction, their approximate wage rates, what types of fringe benefits such as

healthcare or retirement benefits there will be, and the projected increase in personal income

taxes to the state of Rhode Island, all having a reasonable relationship to the probable cost of

acquiring, establishing, improving, or rehabilitating the facilities in which the employment is to

be provided or maintained, and that the financing of that portion of the project in accordance with

the plan is in the public interest; or

      (4) With respect to any portion of the project providing land for industrial or commercial

development or revitalization, but only to the extent not described in subdivision (1):

      (i) That the requirements of subdivision (3) are satisfied; or

      (ii) That the requirements of subdivision (5) are satisfied; or

      (5) With respect to any other portion of the project:

      (i) That it is located in a "blighted and substandard area" as that term is defined in

section 45-31-8(3), or that the project is needed to arrest blight or decay in the city or town and to

prevent the area from becoming a blighted and substandard area;

      (ii) That the project area would not by private enterprise alone, and without either

governmental subsidy or the exercise of governmental powers, be developed or revitalized in a

manner so as to prevent, arrest, or alleviate the spread of blight or decay;

      (iii) That the plan will afford maximum opportunity to privately financed development

or revitalization consistent with the sound needs of the city or town as a whole; and

      (iv) That the financing of that portion of the project in accordance with the plan is in the

public interest. ; and

(v) Approximately how many new jobs, construction and nonconstruction, the plan will

create, their approximate wage rates, whether the expected new jobs will provide fringe benefits

such as healthcare and retirement benefits, and the projected impact of personal income taxes to

the state of Rhode Island.

      (6) No project shall be undertaken pursuant to this chapter until a project plan has been

adopted as provided in this section.

      (7) A city or town may amend a project plan by submitting the full project plan, as

amended, to its legislative body, which must then make a finding with respect to the amended

project plan which is identical to the required finding for the original adoption of the project plan;

provided, that no amendment is violative of or inconsistent with any prior security arrangement

entered into pursuant to the original project plan.

45-33.2-18. Annual report. -- No later than September 1 of each year a project plan

pursuant to this chapter is in effect in a city or town, the city or town shall make a report to the

director of the department of economic development. The annual report shall review for the

preceding fiscal year the activities financed by tax increment financing, the taxable valuation of

the city or town, and for each tax increment area within the city or town, the taxable valuation of

the property within the tax increment area, the amount of the tax increment, and the amount used

or set aside for the purposes of the plan. The report shall also include the approximate number of

new jobs created or preserved from the activities financed by tax incremental financing,

construction and nonconstruction, the approximate amount of the wages for the jobs created, what

types of fringe benefits, such as healthcare insurance or retirement benefits were made available

to the new jobs created, the amount of new personal income taxes generated for the state of

Rhode Island, a description of any plan or process intended to stimulate hiring in the municipality

where the project is located, training of employees or potential employees and outreach to

minority job applicants and minority businesses and any other relevant information requested by

the director.

     SECTION 2. Section 42-64-10 of the General Laws in Chapter 42-64 entitled "Rhode

Island Economic Development Corporation" is hereby amended to read as follows:

42-64-10. Findings of the corporation. -- (a) Except as specifically provided in this

chapter, the corporation shall not be empowered to undertake the acquisition, construction,

reconstruction, rehabilitation, development, or improvement of a project, nor enter into a contract

for any undertaking or for the financing of this undertaking, unless it first

      (1) Finds:

      (i) That the acquisition or construction and operation of the project will prevent,

eliminate, or reduce unemployment or underemployment in the state and will generally benefit

economic development of the state;

      (ii) That adequate provision has been made or will be made for the payment of the cost

of the acquisition, construction, operation, and maintenance and upkeep of the project;

      (iii) That, with respect to real property, the plans and specifications assure adequate

light, air, sanitation, and fire protection;

      (iv) That the project is in conformity with the applicable provisions of chapter 23 of title

46; and

      (v) That the project is in conformity with the applicable provisions of the state guide

plan; and

      (2) Prepares and publicly releases an analysis of the impact the proposed project will or

may have on: the State. The analysis shall be supported by such appropriate data and

documentation and shall consider, but not be limited to, the following factors:

      (i) The impact on the industry or industries in which the completed project will be

involved;

      (ii) State fiscal matters, including the state budget (revenues and expenses); and

      (iii) The financial exposure of the taxpayers of the state under the plans for the proposed

project and negative foreseeable contingencies that may arise therefrom. ;

(iv) The approximate number of jobs projected to be created, construction and non-

construction;

(v) Identification of geographic sources of the staffing for identified jobs;

(vi) The projected duration of the identified construction jobs;

(vii) The approximate wage rates for the identified jobs;

(viii) The types of fringe benefits to be provided with the identified jobs, including

healthcare insurance and any retirement benefits;

(ix) The projected fiscal impact on increased personal income taxes to the state of Rhode

Island; and

(x) The description of any plan or process intended to stimulate hiring from the host

community, training of employees or potential employees and outreach to minority job applicants

and minority businesses.

      (b) With respect to the uses described in section 42-64-3(18), (23), (30), (35), and (36)

and with respect to projects situated on federal lands, the corporation shall not be required to

make the findings specified in subsection (a)(1)(i) of this section.

      (c) Except for the findings specified in subsections (a)(1)(iv) and (a)(1)(v) of this

section, the findings of the corporation made pursuant to this section shall be binding and

conclusive for all purposes.

(d) The corporation shall monitor every impact analysis it completes through the duration

of any project incentives. Such monitoring shall include semi-annual reports made available to

the public on the:

(i) Actual versus projected impact for all considered factors; and

(ii) Verification of all commitments made in consideration of state incentives or aid.

     SECTION 3. This act shall take effect upon passage.

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LC02601/SUB A

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