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| ARTICLE 12 AS AMENDED |
RELATING TO ECONOMIC DEVELOPMENT
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| SECTION 1. Section 42-64-36 of the General Laws in Chapter 42-64 entitled "Rhode |
| Island Commerce Corporation" is hereby amended to read as follows: |
| 42-64-36. Program accountability. |
| (a) The board of the Rhode Island commerce corporation shall be responsible for |
| establishing accountability standards, reporting standards, and outcome measurements for each of |
| its programs to include, but not be limited to, the use of tax credits, loans, loan guarantees, and |
| other financial transactions managed or utilized by the corporation. Included in the standards shall |
| be a set of principles and guidelines to be followed by the board to include: |
| (1) A set of outcomes against which the board will measure each program's and offering's |
| effectiveness; |
| (2) A set of standards for risk analysis for all of the programs especially the loans and loan |
| guarantee programs; and |
| (3) A process for reporting out all loans, loan guarantees, and any other financial |
| commitments made through the corporation that includes the purpose of the loan, financial data as |
| to payment history, and other related information. |
| (b) The board shall annually prepare a report starting in January 2015 which shall be |
| submitted to the house and senate. The report shall summarize the above listed information on each |
| of its programs and offerings and contain recommendations for modification, elimination, or |
| continuation. |
| (c) The commerce corporation shall prepare a report beginning January 1, 2019, which |
| shall be submitted to the house and senate within a period of thirty (30) days of the close of each |
| quarter. The report shall summarize the information listed in subsection (a) of this section on each |
| of its programs and offerings, including any modifications, adjustments, clawbacks, reallocations, |
| alterations, or other changes, made from the close of the prior fiscal quarter and include comparison |
| data to the reports submitted pursuant to §§ 42-64.20-9(b), 42-64.21-8(a) and (8)(c), 42-64.22- |
| 14(a), 42-64.23-5(d), 42-64.24-5(d), 42-64.25-12, 42-64.26-6, 42-64.27-4, 42-64.28-9, 42-64.29- |
| 7(a), 42-64.31-3, 44-48.3-13(b) and (13)(c), chapters 64.20, 64.21, 64.22, 64.23, 64.24, 64.25, |
| 64.26, 64.27, 64.28, 64.29, 64.30, 64.31, 64.32 of title 42 and § 44-48.3-13. |
| (d) The board shall coordinate its efforts with the office of revenue analysis to not duplicate |
| information on the use of tax credits and other tax expenditures. |
| SECTION 2. Section 42-64.20-10 of the General Laws in Chapter 42-64.20 entitled |
| "Rebuild Rhode Island Tax Credit" is hereby amended to read as follows: |
| 42-64.20-10. Sunset. |
| No credits shall be authorized to be reserved pursuant to this chapter after December 31, |
| 2018 June 30, 2020. |
| SECTION 3. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled "Rhode |
| Island Tax Increment Financing" is hereby amended to read as follows: |
| 42-64.21-9. Sunset. |
| The commerce corporation shall enter into no agreement under this chapter after December |
| 31, 2018 June 30, 2020. |
| SECTION 4. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled "Tax |
| Stabilization Incentive" is hereby amended to read as follows: |
| 42-64.22-15. Sunset. |
| The commerce corporation shall enter into no agreement under this chapter after December |
| 31, 2018 June 30, 2020. |
| SECTION 5. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled "First |
| Wave Closing Fund" is hereby amended to read as follows: |
| 42-64.23-8. Sunset. |
| No financing shall be authorized to be reserved pursuant to this chapter after December 31, |
| 2018 June 30, 2020. |
| SECTION 6. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled "I-195 |
| Redevelopment Project Fund" is hereby amended to read as follows: |
| 42-64.24-8. Sunset. |
| No funding, credits, or incentives shall be authorized or authorized to be reserved pursuant |
| to this chapter after December 31, 2018 June 30, 2020. |
| SECTION 7. Section 42-64.25-14 of the General Laws in Chapter 42-64.25 entitled "Small |
| Business Assistance Program" is hereby amended to read as follows: |
| 42-64.25-14. Sunset. |
| No grants, funding, or incentives shall be authorized pursuant to this chapter after |
| December 31, 2018 June 30, 2020. |
| SECTION 8. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled "Stay |
| Invested in RI Wavemaker Fellowship" is hereby amended to read as follows: |
| 42-64.26-12. Sunset. |
| No incentives or credits shall be authorized pursuant to this chapter after December 31, |
| 2018 June 30, 2020. |
| SECTION 9. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled "Main |
| Street Rhode Island Streetscape Improvement Fund" is hereby amended to read as follows: |
| 42-64.27-6. Sunset. |
| No incentives shall be authorized pursuant to this chapter after December 31, 2018 June |
| 30, 2020. |
| SECTION 10. Section 42-64.28-10 of the General Laws in Chapter 42-64.28 entitled |
| "Innovation Initiative" is hereby amended to read as follows: |
| 42-64.28-10. Sunset. |
| No vouchers, grants, or incentives shall be authorized pursuant to this chapter after |
| December 31, 2018 June 30, 2020. |
| SECTION 11. Section 42-64.29-8 of the General Laws in Chapter 42-64.29 entitled |
| "Industry Cluster Grants" is hereby amended to read as follows: |
| 42-64.29-8. Sunset. |
| No grants or incentives shall be authorized to be reserved pursuant to this chapter after |
| December 31, 2018 June 30, 2020. |
| SECTION 12. Section 42-64.31-4 of the General Laws in Chapter 42-64.31 entitled "High |
| School, College, and Employer Partnerships" is hereby amended to read as follows: |
| 42-64.31-4. Sunset. |
| No grants shall be authorized pursuant to this chapter after December 31, 2018 June 30, |
| 2020. |
| SECTION 13. Chapter 42-64.32 of the General Laws entitled "Air Service Development |
| Fund" is hereby amended by adding thereto the following section: |
| 42-64.32-6. Sunset. |
| No grants, credits, or incentives shall be authorized or authorized to be reserved pursuant |
| to this chapter after June 30, 2020. |
| SECTION 14. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled "Rhode |
| Island New Qualified Jobs Incentive Act 2015" is hereby amended to read as follows: |
| 44-48.3-14. Sunset. |
| No credits shall be authorized to be reserved pursuant to this chapter after December 31, |
| 2018 June 30, 2020. |
| SECTION 15. Section 42-64.25-6 of the General Laws in Chapter 42-64.25 entitled "Small |
| Business Assistance Program" is hereby amended to read as follows: |
| 42-64.25-6. Micro-loan allocation. |
| Notwithstanding anything to the contrary in this chapter, not less than ten percent (10%) |
| and not more than twenty-five percent (25%) of program funds will be allocated to "micro loans" |
| with a principal amount between two thousand dollars ($2,000) and twenty-five thousand dollars |
| ($25,000). Micro loans will be administered by lending organizations, which will be selected by |
| the commerce corporation on a competitive basis and shall have experience in providing technical |
| and financial assistance to microenterprises. |
| SECTION 16. Sections 44-31.2-2 and 44-31.2-5 of the General Laws in Chapter 44-31.2 |
| entitled "Motion Picture Production Tax Credits" are hereby amended to read as follows: |
| 44-31.2-2. Definitions. |
| For the purposes of this chapter: |
| (1) "Accountant's certification" as provided in this chapter means a certified audit by a |
| Rhode Island certified public accountant licensed in accordance with chapter 3.1 of title 5. |
| (2) "Application year" means within the calendar year the motion picture production |
| company files an application for the tax credit. |
| (3) "Base investment" means the actual investment made and expended by a state-certified |
| production in the state as production-related costs. |
| (4) "Documentary production" means a non-fiction production intended for educational or |
| commercial distribution that may require out-of-state principal photography. |
| (5) "Domiciled in Rhode Island" means a corporation incorporated in Rhode Island or a |
| partnership, limited liability company, or other business entity formed under the laws of the state |
| of Rhode Island for the purpose of producing motion pictures as defined in this section, or an |
| individual who is a domiciled resident of the state of Rhode Island as defined in chapter 30 of this |
| title. |
| (6) "Final production budget" means and includes the total pre-production, production, and |
| post-production out-of-pocket costs incurred and paid in connection with the making of the motion |
| picture. The final production budget excludes costs associated with the promotion or marketing of |
| the motion picture. |
| (7) "Motion picture" means a feature-length film, documentary production, video, |
| television series, or commercial made in Rhode Island, in whole or in part, for theatrical or |
| television viewing or as a television pilot or for educational distribution. The term "motion picture" |
| shall not include the production of television coverage of news or athletic events, reality television |
| show(s) nor shall it apply to any film, video, television series, or commercial or a production for |
| which records are required under 18 U.S.C. § 2257, to be maintained with respect to any performer |
| in such production or reporting of books, films, etc. with respect to sexually explicit conduct. |
| (8) "Motion picture production company" means a corporation, partnership, limited |
| liability company, or other business entity engaged in the business of producing one or more motion |
| pictures as defined in this section. Motion picture production company shall not mean or include: |
| (a) Any company owned, affiliated, or controlled, in whole or in part, by any company or |
| person who or that is in default: |
| (i) On taxes owed to the state; or |
| (ii) On a loan made by the state in the application year; or |
| (iii) On a loan guaranteed by the state in the application year; or |
| (b) Any company or person who or that has discharged an obligation to pay or repay public |
| funds or monies by: |
| (i) Filing a petition under any federal or state bankruptcy or insolvency law; |
| (ii) Having a petition filed under any federal or state bankruptcy or insolvency law against |
| such company or person; |
| (iii) Consenting to, or acquiescing or joining in, a petition named in (i) or (ii); |
| (iv) Consenting to, or acquiescing or joining in, the appointment of a custodian, receiver, |
| trustee, or examiner for such company's or person's property; or |
| (v) Making an assignment for the benefit of creditors or admitting in writing or in any legal |
| proceeding its insolvency or inability to pay debts as they become due. |
| (9) "Primary locations" means the locations that (1) At least fifty-one percent (51%) of the |
| motion picture principal photography days are filmed; or (2) At least fifty-one percent (51%) of the |
| motion picture's final production budget is spent and employs at least five (5) individuals during |
| the production in this state; or (3) For documentary productions, the location of at least fifty-one |
| percent (51%) of the total productions days, which shall include pre-production and post- |
| production locations. |
| (10) "Rhode Island film and television office" means an office within the department of |
| administration that has been established in order to promote and encourage the locating of film and |
| television productions within the state of Rhode Island. The office is also referred to within as the |
| "film office". |
| (11) "State-certified production" means a motion picture production approved by the |
| Rhode Island film office and produced by a motion picture production company domiciled in |
| Rhode Island, whether or not such company owns or controls the copyright and distribution rights |
| in the motion picture; provided, that such company has either: |
| (a) Signed a viable distribution plan; or |
| (b) Is producing the motion picture for: |
| (i) A major motion picture distributor; |
| (ii) A major theatrical exhibitor; |
| (iii) Television network; or |
| (iv) Cable television programmer. |
| (12) "State-certified production cost" means any pre-production, production, and post- |
| production cost that a motion picture production company incurs and pays to the extent it occurs |
| within the state of Rhode Island. Without limiting the generality of the foregoing, "state-certified |
| production costs" include: set construction and operation; wardrobes, make-up, accessories, and |
| related services; costs associated with photography and sound synchronization, lighting, and related |
| services and materials; editing and related services, including, but not limited to: film processing, |
| transfers of film to tape or digital format, sound mixing, computer graphics services, special effects |
| services, and animation services, salary, wages, and other compensation, including related benefits, |
| of persons employed, either directly or indirectly, in the production of a film including writer, |
| motion picture director, producer (provided the work is performed in the state of Rhode Island); |
| rental of facilities and equipment used in Rhode Island; leasing of vehicles; costs of food and |
| lodging; music, if performed, composed, or recorded by a Rhode Island musician, or released or |
| published by a person domiciled in Rhode Island; travel expenses incurred to bring persons |
| employed, either directly or indirectly, in the production of the motion picture, to Rhode Island (but |
| not expenses of such persons departing from Rhode Island); and legal (but not the expense of a |
| completion bond or insurance and accounting fees and expenses related to the production's |
| activities in Rhode Island); provided such services are provided by Rhode Island licensed attorneys |
| or accountants. |
| 44-31.2-5. Motion picture production company tax credit. |
| (a) A motion picture production company shall be allowed a credit to be computed as |
| provided in this chapter against a tax imposed by chapters 11, 14, 17, and 30 of this title. The |
| amount of the credit shall be twenty-five percent (25%) thirty percent (30%) of the state certified |
| production costs incurred directly attributable to activity within the state, provided that the primary |
| locations are within the state of Rhode Island and the total production budget as defined herein is |
| a minimum of one hundred thousand dollars ($100,000). The credit shall be earned in the taxable |
| year in which production in Rhode Island is completed, as determined by the film office in final |
| certification pursuant to subsection § 44-31.2-6(c). |
| (b) For the purposes of this section: "total production budget" means and includes the |
| motion picture production company's pre-production, production, and post-production costs |
| incurred for the production activities of the motion picture production company in Rhode Island in |
| connection with the production of a state-certified production. The budget shall not include costs |
| associated with the promotion or marketing of the film, video or television product. |
| (c) Notwithstanding subsection (a), the credit shall not exceed five million dollars |
| ($5,000,000) seven million dollars ($7,000,000) and shall be allowed against the tax for the taxable |
| period in which the credit is earned and can be carried forward for not more than three (3) |
| succeeding tax years. Pursuant to rules promulgated by the tax administrator, the administrator may |
| issue a waiver of the five million dollars ($5,000,000) seven million dollars ($7,000,000) tax credit |
| cap for any feature-length film or television series up to the remaining funds available pursuant to |
| section (e). |
| (d) Credits allowed to a motion picture production company, which is a subchapter S |
| corporation, partnership, or a limited liability company that is taxed as a partnership, shall be passed |
| through respectively to persons designated as partners, members, or owners on a pro rata basis or |
| pursuant to an executed agreement among such persons designated as subchapter S corporation |
| shareholders, partners, or members documenting an alternate distribution method without regard to |
| their sharing of other tax or economic attributes of such entity. |
| (e) No more than fifteen million dollars ($15,000,000) in total may be issued for any tax |
| year beginning after December 31, 2007, for motion picture tax credits pursuant to this chapter |
| and/or musical and theatrical production tax credits pursuant to chapter 31.3 of this title. Said |
| credits shall be equally available to motion picture productions and musical and theatrical |
| productions. No specific amount shall be set aside for either type of production. |
| SECTION 17. This Article shall take effect upon passage. |