law21162-06

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art.006/6/006/5/006/4/006/3/006/2/006/1

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ARTICLE 6 AS AMENDED

RELATING TO TAXES AND REVENUE

SECTION 1. Sections 5-65-5, 5-65-8 and 5-65-9 of the General Laws in Chapter 5-65

entitled “Contractors’ Registration and Licensing Board” are hereby amended to read as follows:

5-65-5. Registered application.

(a) A person who wishes to register as a contractor shall submit an application upon a form

prescribed by the board. The application shall include:

(1) Workers' compensation insurance account number, or company name if a number has

not yet been obtained, if applicable;

(2) Unemployment insurance account number, if applicable;

(3) State withholding tax account number, if applicable;

(4) Federal employer identification number, if applicable, or if self-employed and

participating in a retirement plan;

(5)(i) The individual(s) name and business address and residential address of:

(A) Each partner or venturer, if the applicant is a partnership or joint venture;

(B) The owner, if the applicant is an individual proprietorship;

secretary of state's office, if the applicant is a corporation;

(ii) Post office boxes are not acceptable as the only address;

(6) A statement as to whether or not the applicant has previously applied for registration,

or is or was an officer, partner, or venturer of an applicant who previously applied for registration

and if so, the name of the corporation, partnership, or venture; and

(7) Valid insurance certificate for the type of work being performed.

(b) A person may be prohibited from registering or renewing a registration as a contractor

under the provisions of this chapter or his or her registration may be revoked or suspended if he or

she has any unsatisfied or outstanding judgments from arbitration, bankruptcy, courts, or

administrative agency against him or her relating to his or her work as a contractor, and provided,

further, that a statement shall be provided to the board attesting to the information herein.

by this chapter, is punishable by a fine not to exceed ten thousand dollars ($10,000) and/or

revocation of the registration., or both.

(d) An applicant must be at least eighteen (18) years of age.

(e) Satisfactory proof shall be provided to the board evidencing the completion of five (5)

two and one-half (2.5) hours of continuing education units that will be required to be maintained

by residential contractors as a condition of registration as determined by the board pursuant to

established regulations.

(f) A certification in a form issued by the board shall be completed upon registration or

license or renewal to ensure contractors are aware of certain provisions of this law and shall be

signed by the registrant before a registration can be issued or renewed.

5-65-8. Term of registration – Renewal – Registration identification card.

(a) A certificate of registration shall be valid for two one (2) (1) years from the date of

issuance unless the registration is revoked or suspended as described in § 5-65-10. It may be

renewed by the same procedure provided for an original registration upon application and

furnishing of any additional supplemental information that the board may require by rule.

(b) The board shall issue a pocket-card certificate of registration to a contractor registered

under this chapter including a picture of the registrant as prescribed by the board in the rules and

regulations. The Rhode Island department of administration, division of motor vehicles, shall, upon

the board's request, provide electronic copies of the digital photos of any registrant under this

chapter on record to be incorporated into the contractors' registration data bank to match the drivers'

licenses or IDs provided by registrants or applicants unless the applicant provides written

notification to the board to the contrary.

notice of the renewal date assigned and by making appropriate adjustments in the renewal fee.

(d) The presentation of the registration or license identification card shall be mandatory at

the time of permit application.

(e) If a registrant files in bankruptcy court, the board must be notified in writing by the

registrant and kept informed of the status of the case until dismissed, discharged, or resolved in

court.

5-65-9. Registration fee.

(a) Each applicant shall pay to the board:

(1) For original registration or renewal of registration, a fee of two hundred dollars ($200)

one hundred and fifty dollars ($150).

(2) A fee for all changes in the registration, as prescribed by the board, other than those

due to clerical errors.

(b) All fees and fines collected by the board shall be deposited as general revenues to

support the activities set forth in this chapter until June 30, 2008. Beginning July 1, 2008, all fees

and fines collected by the board shall be deposited into a restricted-receipt account for the exclusive

use of supporting programs established by this chapter.

the speaker of the house and the president of the senate, with copies to the chairpersons of the house

and senate finance committees, detailing:

(1) The total number of fines issued, broken down by category, including the number of

fines issued for a first violation and the number of fines issued for a subsequent violation;

(2) The total dollar amount of fines levied;

(3) The total amount of fees, fines, and penalties collected and deposited for the most

recently completed fiscal year; and

(4) The account balance as of the date of the report.

(d) Each year, the department of business regulation shall prepare a proposed budget to

support the programs approved by the board. The proposed budget shall be submitted to the board

for its review. A final budget request shall be submitted to the legislature as part of the department

of business regulation's annual request.

(e) New or renewal registrations may be filed online or with a third-party approved by the

board, with the additional cost incurred to be borne by the registrant.

SECTION 2. Section 73-4 of Chapter 5 of the General Laws entitled “Roofing Contractors”

is hereby amended to read as follows:

5-73-4. Registration fee.

All roofing contractors shall submit a payment in the amount of four hundred dollars

($400), which shall support the licensing program, representing a license fee along with the

application referenced in § 5-73-3, and be required to comply with the provisions of chapter 65 of

this title and those provisions shall be interpreted to include commercial roofers as defined in this

chapter. Beginning July 1, 2008, all fines and fees collected pursuant to this chapter shall be

deposited into a restricted-receipt account for the exclusive use of supporting programs established

by the board. The license shall expire every two (2) years on the anniversary date of the license's

issuance and may be renewed upon payment of a two hundred dollar ($200) fee.

SECTION 3. Section 7-11-206 of the General Laws in Chapter 7-11 entitled “Rhode Island

Uniform Securities Act” is hereby amended to read as follows:

7-11-206. Licensing and notice fees; and filing requirements for federal covered

advisers.

(a) A federal covered adviser or an applicant for licensing shall pay an annual fee as

follows:

(1) Broker-dealer three hundred dollars ($300) and for each branch office one hundred

dollars ($100);

(2) Sales representative seventy-five dollars ($75.00) one hundred dollars ($100.00);

(3) Investment adviser three hundred dollars ($300);

(4) Investment adviser representative sixty dollars ($60.00); and

(5) Federal covered adviser three hundred dollars ($300).

(b) Except with respect to federal covered advisers whose only clients are those described

in § 7-11-204(1)(i), a federal covered adviser shall file any documents filed with the U.S. Securities

and Exchange Commission with the director, that the director requires by rule or order, together

with any notice fee and consent to service of process that the director requires by rule or order. The

notice filings under this subsection expire annually on December 31, unless renewed.

year. A notice filing may be renewed by filing any documents that have been filed with the U.S.

Securities and Exchange Commission as required by the director along with a renewal fee of three

hundred dollars ($300).

(d) A federal covered adviser may terminate a notice filing upon providing the director

notice of the termination, which is effective upon receipt by the director.

(e) Notwithstanding the provisions of this section, until October 11, 1999, the director may

require the registration as an investment adviser of any federal covered adviser who has failed to

promptly pay the fees required by this section after written notification from the director of the

nonpayment or underpayment of the fees. A federal covered adviser is considered to have promptly

paid the fees if they are remitted to the director within fifteen (15) days following the federal

covered adviser's receipt of written notice from the director.

(f) For purposes of this section, "branch office" means any location where one or more

associated persons of a broker-dealer regularly conducts the business of effecting any transactions

in, or inducing or attempting to induce the purchase or sale of any security, or is held out as such,

excluding:

(1) Any location that is established solely for customer service and/or back office type

functions where no sales activities are conducted and that is not held out to the public as a branch

office;

(2) Any location that is the associated person's primary residence; provided that:

(i) Only one associated person, or multiple associated persons who reside at that location

and are members of the same immediate family, conduct business at the location;

(ii) The location is not held out to the public as an office and the associated person does

not meet with customers at the location;

(iii) Neither customer funds nor securities are handled at that location;

(iv) The associated person is assigned to a designated branch office, and such designated

branch office is reflected on all business cards, stationery, advertisements, and other

communications to the public by such associated person;

(v) The associated person's correspondence and communications with the public are

subject to the firm's supervision in accordance with Rule 3010 of the Financial Industry Regulatory

Authority;

(vi) Electronic communications are made through the broker-dealer's electronic system;

(vii) All orders are entered through the designated branch office or an electronic system

established by the broker-dealer that is reviewable at the branch office;

(viii) Written supervisory procedures pertaining to supervision of sales activities conducted

at the residence are maintained by the broker-dealer; and

(ix) A list of the residence locations is maintained by the broker-dealer;

(3) Any location, other than a primary residence, that is used for securities business for less

than thirty (30) business days in any one calendar year, provided the broker-dealer complies with

the provisions of subsections (f)(2)(i) through (ix) above;

(4) Any office of convenience, where associated person(s) occasionally and exclusively by

appointment meet with customers, which that is not held out to the public as an office;

(5) Any location that is used primarily to engage in non-securities activities and from which

the associated person(s) effects no more than twenty-five (25) securities transactions in any one

calendar year; provided that any advertisement or sales literature identifying such location also sets

forth the address and telephone number of the location from which the associated person(s)

conducting business at the non-branch locations are directly supervised;

(6) The floor of a registered national securities exchange where a broker-dealer conducts a

direct access business with public customers;

(7) A temporary location established in response to the implementation of a business

continuity plan.

(g) Notwithstanding the exclusions in subsection (f), any location that is responsible for

supervising the activities of persons associated with the broker-dealer at one or more non-branch

locations of the broker-dealer is considered to be a branch office.

(h) The term "business day" as used in subsection (f) shall not include any partial business

day provided that the associated person spends at least four (4) hours on such business day at his

or her designated branch office during the hours that such office is normally open for business.

(i) Where such the office of convenience is located on bank premises, signage necessary

to comply with applicable federal and state laws, rules, and regulations and applicable rules and

regulations of the New York Stock Exchange, other self-regulatory organizations, and securities

and banking regulators may be displayed and shall not be deemed "holding out" for purposes of

subsection (f)(4).

(j) If an application is denied or withdrawn or the license is revoked, suspended, or

withdrawn, the director is not required to refund the fee paid.

(k) The director may issue a stop order suspending the activities of a federal covered

adviser in this state if the director reasonably believes there has been a violation of the provisions

of this section.

SECTION 4. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled “Licensing

of Health Care Facilities” is hereby amended to read as follows:

23-17-38.1. Hospitals – Licensing fee.

(a) There is also imposed a hospital licensing fee at the rate of six percent (6%) upon the

net patient-services revenue of every hospital for the hospital's first fiscal year ending on or after

January 1, 2017, except that the license fee for all hospitals located in Washington County, Rhode

Island shall be discounted by thirty-seven percent (37%). The discount for Washington County

hospitals is subject to approval by the Secretary of the U.S. Department of Health and Human

Services of a state plan amendment submitted by the executive office of health and human services

for the purpose of pursuing a waiver of the uniformity requirement for the hospital license fee. This

licensing fee shall be administered and collected by the tax administrator, division of taxation

within the department of revenue, and all the administration, collection, and other provisions of

chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator

on or before July 10, 2019, and payments shall be made by electronic transfer of monies to the

general treasurer and deposited to the general fund. Every hospital shall, on or before June 14,

2019, make a return to the tax administrator containing the correct computation of net patient-

services revenue for the hospital fiscal year ending September 30, 2017, and the licensing fee due

upon that amount. All returns shall be signed by the hospital's authorized representative, subject to

the pains and penalties of perjury.

(b) (a) There is also imposed a hospital licensing fee at the rate of six percent (6%) upon

the net patient-services revenue of every hospital for the hospital's first fiscal year ending on or

after January 1, 2018, except that the license fee for all hospitals located in Washington County,

Rhode Island shall be discounted by thirty-seven percent (37%). The discount for Washington

County hospitals is subject to approval by the Secretary of the U.S. Department of Health and

Human Services of a state plan amendment submitted by the executive office of health and human

services for the purpose of pursuing a waiver of the uniformity requirement for the hospital license

fee. This licensing fee shall be administered and collected by the tax administrator, division of

taxation within the department of revenue, and all the administration, collection, and other

provisions of Chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax

administrator on or before July 13, 2020, and payments shall be made by electronic transfer of

monies to the general treasurer and deposited to the general fund. Every hospital shall, on or before

June 15, 2020, make a return to the tax administrator containing the correct computation of net

patient- services revenue for the hospital fiscal year ending September 30, 2018, and the licensing

fee due upon that amount. All returns shall be signed by the hospital's authorized representative,

subject to the pains and penalties of perjury.

hospital in the state. The hospital licensing fee is equal to five percent (5.0%) of the net patient-

services revenue of every hospital for the hospital's first fiscal year ending on or after January 1,

2018 2019, except that the license fee for all hospitals located in Washington County, Rhode Island

shall be discounted by thirty-seven percent (37%). The discount for Washington County hospitals

is subject to approval by the Secretary of the U.S. Department of Health and Human Services of a

state plan amendment submitted by the executive office of health and human services for the

purpose of pursuing a waiver of the uniformity requirement for the hospital license fee. This

licensing fee shall be administered and collected by the tax administrator, division of taxation

within the department of revenue, and all the administration, collection, and other provisions of

Chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax administrator

on or before July 13, 2021, and payments shall be made by electronic transfer of monies to the

general treasurer and deposited to the general fund. Every hospital shall, on or before June 15,

2020, make a return to the tax administrator containing the correct computation of net patient-

services revenue for the hospital fiscal year ending September 30, 2018 2019, and the licensing fee

due upon that amount. All returns shall be signed by the hospital's authorized representative, subject

to the pains and penalties of perjury.

(d) (c) There is also imposed a hospital licensing fee for state fiscal year 2022 against each

hospital in the state. The hospital licensing fee is equal to five and seven hundred twenty-five

thousandths percent (5.725%) of the net patient-services revenue of every hospital for the hospital's

first fiscal year ending on or after January 1, 2020, except that the license fee for all hospitals

located in Washington County, Rhode Island shall be discounted by thirty-seven percent (37%).

The discount for Washington County hospitals is subject to approval by the Secretary of the U.S.

Department of Health and Human Services of a state plan amendment submitted by the executive

office of health and human services for the purpose of pursuing a waiver of the uniformity

requirement for the hospital license fee. This licensing fee shall be administered and collected by

the tax administrator, division of taxation within the department of revenue, and all the

administration, collection, and other provisions of Chapter 51 of title 44 shall apply. Every hospital

shall pay the licensing fee to the tax administrator on or before July 13, 2022, and payments shall

be made by electronic transfer of monies to the general treasurer and deposited to the general fund.

Every hospital shall, on or before June 15, 2022, make a return to the tax administrator containing

the correct computation of net patient-services revenue for the hospital fiscal year ending

September 30, 2020, and the licensing fee due upon that amount. All returns shall be signed by the

hospital's authorized representative, subject to the pains and penalties of perjury.

(d) For purposes of this section the following words and phrases have the following

meanings:

(1) "Hospital" means the actual facilities and buildings in existence in Rhode Island,

licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on

that license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital

conversions) and § 23-17-6(b) (change in effective control), that provides short-term acute inpatient

and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness,

disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated Medicaid

managed care payment rates for a court-approved purchaser that acquires a hospital through

receivership, special mastership, or other similar state insolvency proceedings (which court-

approved purchaser is issued a hospital license after January 1, 2013) shall be based upon the newly

negotiated rates between the court-approved purchaser and the health plan, and such rates shall be

effective as of the date that the court-approved purchaser and the health plan execute the initial

agreement containing the newly negotiated rate. The rate-setting methodology for inpatient hospital

payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and 40-8-13.4(b)(2),

respectively, shall thereafter apply to negotiated increases for each annual twelve-month (12)

period as of July 1 following the completion of the first full year of the court-approved purchaser's

initial Medicaid managed care contract.

(2) "Gross patient-services revenue" means the gross revenue related to patient care

services.

(3) "Net patient-services revenue" means the charges related to patient care services less

(i) charges Charges attributable to charity care; (ii) bad Bad debt expenses; and (iii) contractual

Contractual allowances.

(e) The tax administrator shall make and promulgate any rules, regulations, and procedures

not inconsistent with state law and fiscal procedures that he or she deems necessary for the proper

administration of this section and to carry out the provisions, policy, and purposes of this section.

(f) The licensing fee imposed by subsection (b) shall apply to hospitals as defined herein

that are duly licensed on July 1, 2019 2020, and shall be in addition to the inspection fee imposed

by § 23-17-38 and to any licensing fees previously imposed in accordance with this section.

(g) The licensing fee imposed by subsection (c) shall apply to hospitals as defined herein

that are duly licensed on July 1, 2020 2021, and shall be in addition to the inspection fee imposed

by § 23-17-38 and to any licensing fees previously imposed in accordance with this section.

SECTION 5. Section 42-17.1-9.1 of the General Laws in Chapter 42-17.1 entitled "User

fees at state beaches, parks, and recreation areas” is hereby amended to read as follows:

42-17.1-9.1. User fees at state beaches, parks, and recreation areas.

(a) The department of environmental management in pursuance of its administrative duties

and responsibilities may charge a user fee for any state beach, or recreational area under its

jurisdiction, and fees for the use of its services or facilities.

(b) The fee may be on a daily or annual basis, or both, and may be based on vehicle parking

or other appropriate means. The fees may recognize the contribution of Rhode Island taxpayers to

support the facilities in relation to other users of the state's facilities. The fee structure may

acknowledge the need to provide for all people, regardless of circumstances.

Rates so charged should be comparable to equivalent commercial facilities.

(d) All such fees shall be established after a public hearing.

(e)(1) All daily fees from beach parking, which shall also include fees charged and

collected at Ninigret conservation area and Charlestown breachway, shall be shared with the

municipality in which the facility is located on the basis of seventy-three percent (73%) retained

by the state and twenty-seven percent (27%) remitted to the municipality; provided, further, from

July 1, 2016, until October 1, 2021, the beach fees charged and collected under this subsection shall

be equal to those in effect on June 30, 2011.

(1) (2) Notwithstanding subsection (e)(1), effective July 1, 2021, the fees charged and

collected for facilities located in the town of Westerly may exceed those in effect on June 30, 2011,

in an amount to be reasonably determined by the department of environmental management.

(f) Fifty percent (50%) of all user and concession fees received by the state shall be

deposited as general revenues. For the year beginning July 1, 1979, the proportion of user and

concession fees to be received by the state shall be sixty-five percent (65%); for the year beginning

July 1, 1980, eighty-five percent (85%); and for the year beginning July 1, 1981, and all years

thereafter, one hundred percent (100%). The general revenue monies appropriated are hereby

specifically dedicated to meeting the costs of development, renovation of, and acquisition of state-

owned recreation areas and for regular maintenance, repair and operation of state-owned recreation

areas. Purchases of vehicles and equipment and repairs to facilities shall not exceed four hundred

thousand dollars ($400,000) annually. Notwithstanding the provisions of § 37-1-1 or any other

provision of the general laws, the director of the department of environmental management is

hereby authorized to accept any grant, devise, bequest, donation, gift, or assignment of money,

bonds, or other valuable securities for deposit in the same manner as provided above for user and

concession fees retained by the state.

(g) No fee shall be charged to any school or other nonprofit organization provided that a

representative of the school or other organization gives written notice of the date and time of their

arrival to the facility.

SECTION 6. Sections 44-19-1 and 44-19-2 of the General Laws in Chapter 44-19 entitled

“Sales and Use Taxes – Enforcement and Collection” are hereby amended to read as follows:

44-19-1. Annual permit required – Retail business subject to sales tax – Promotion of

shows – Revocation of show permit.

(a)(1) Every person desiring to engage in or conduct within this state a business of making

sales at retail, or engage in a business of renting living quarters in any hotel, rooming house, or

tourist camp, the gross receipts from which sales or rental charges are required to be included in

the measure of the tax imposed under chapter 18 of this title, shall file with the tax administrator

an application for a permit for each place of business. The application shall be in a form, include

information, and bear any signatures that the tax administrator may require. At the time of making

an application, the applicant shall pay to the tax administrator a permit fee of ten dollars ($10.00)

for each permit. There shall be no fee for this permit. Every permit issued under this chapter expires

on June 30 of each year at the times prescribed by the tax administrator.

(2) Every permit holder shall annually, on or before February 1 on forms prescribed and at

the times prescribed by the tax administrator of each year, renew its permit by filing an application

for renewal along with a ten dollars ($10.00) renewal fee. The renewal permit is valid for the period

July 1 of that calendar year through June 30 of the subsequent calendar year unless otherwise

canceled, suspended, or revoked. All fees received under this section are allocated to the tax

administrator for enforcement and collection of all taxes.

(b)(1) Every promoter of a show shall, at least ten (10) days prior to the opening of each

show, file with the tax administrator a notice stating the location and dates of the show, in a form

prescribed by the tax administrator.

(2) The tax administrator shall, within five (5) days after the receipt of that notice, issue to

the promoter, without charge, a permit to operate the show, unless the provisions of subdivision (5)

of this subsection subsection (b)(5) of this section have been applied to the promoter. No promoter

may operate a show without obtaining the permit. The permit shall be prominently displayed at the

main entrance of the show.

(3) Any promoter who is a retailer shall comply with all of the provisions of this chapter

and chapter 18 relating to retailers, in addition to all of the provisions of this chapter relating to

promoters.

(4) A promoter may not permit any person to display or sell tangible personal property,

services, or food and drink at a show unless that person is registered under subsection (a) of this

section and displays his or her permit in accordance with the provisions of subsection (a) of this

section.

(5) Any promoter who permits any person to display or sell tangible personal property,

services, or food and drink at a show who is not registered, or does not display a permit, or fails to

keep a record or file a monthly report of the name, address, and permit number of every person

whom the promoter permitted to sell or display tangible personal property, services, or food and

drink at a show, is subject to revocation of all existing permits issued pursuant to this section to

operate a show, and to the denial of a permit to operate any show for a period of not more than two

(2) years, in addition to the provisions of § 44-19-31.

44-19-2. Issuance of permit – Assignment prohibited – Display – Fee for renewal after

suspension or revocation.

Upon receipt of the required application and permit fee, the tax administrator shall issue to

the applicant a separate permit for each place of business within the state. If the applicant, at the

time of making the application, owes any tax, penalty, or interest imposed under chapters 18 and

19 of this title, then before a permit is issued the applicant shall pay the amount owed. A permit is

not assignable and is valid only for the person in whose name it is issued and for the transaction of

business at the place designated in the permit. The permit shall at all times be conspicuously

displayed at the place for which issued. A retailer whose permit has been previously suspended or

revoked shall pay to the tax administrator a fee of ten dollars ($10.00) for the renewal or issuance

of a permit.

SECTION 7. Sections 46-23-7.1, 46-23-7.3 and 46-23-7.4 of the General Laws in Chapter

46-23 of entitled “Coastal Resources Management Council” are hereby amended to read as follows:

46-23-7.1. Administrative penalties.

Any person who violates, or refuses or fails to obey, any notice or order issued pursuant to

§ 46-23-7(a); or any assent, order, or decision of the council, may be assessed an administrative

penalty by the chairperson or executive director in accordance with the following:

(1) The chairperson or executive director is authorized to assess an administrative penalty

of not more than two thousand five hundred dollars ($2,500) ten thousand dollars ($10,000) for

each violation of this section, and is authorized to assess additional penalties of not more than five

hundred dollars ($500) one thousand ($1,000) for each day during which this violation continues

after receipt of a cease-and-desist order from the council pursuant to § 46-23-7(a), but in no event

shall the penalties in an aggregate equal or exceed ten thousand dollars ($10,000) fifty thousand

dollars ($50,000). Prior to the assessment of a penalty under this subdivision, the property owner

or person committing the violation shall be notified by certified mail or personal service that a

penalty is being assessed. The notice shall include a reference to the section of the law, rule,

regulation, assent, order, or permit condition violated; a concise statement of the facts alleged to

constitute the violation; a statement of the amount of the administrative penalty assessed; and a

statement of the party's right to an administrative hearing.

(2) The party shall have twenty-one (21) days from receipt of the notice within which to

deliver to the council a written request for a hearing. This request shall specify in detail the

statements contested by the party. The executive director shall designate a person to act as hearing

officer. If no hearing is requested, then after the expiration of the twenty-one (21) day period, the

council shall issue a final order assessing the penalty specified in the notice. The penalty is due

when the final order is issued. If the party shall request a hearing, any additional daily penalty shall

not commence to accrue until the council issues a final order.

(3) If a violation is found to have occurred, the council may issue a final order assessing

not more than the amount of the penalty specified in the notice. The penalty is due when the final

order is issued.

(4) The party may within thirty (30) days appeal the final order, of fine assessed by the

council to the superior court which shall hear the assessment of the fine de novo.

46-23-7.3. Criminal penalties.

Any person who knowingly violates any provision of this chapter, the coastal resources

management program, or any rule, regulation, assent, or order shall be guilty of a misdemeanor,

and, upon conviction thereof shall be fined not more than five hundred dollars ($500) one thousand

dollars ($1,000) or by imprisonment of not more than three (3) months or both; and each day the

violation is continued or repeated shall be deemed a separate offense.

46-23-7.4. Penalty for blocking or posting of rights-of-way.

Any person who shall post or block any tidal water, public right-of-way, as designated by

the council, shall be punished by a fine not exceeding five hundred dollars ($500) one thousand

dollars ($1,000) or by imprisonment for not more than three (3) months or both; and each day the

posting or blocking continues or is repeated shall be deemed a separate offense. The chairperson

of the council, through council's legal counsel or the attorney general, may apply to any court of

competent jurisdiction for an injunction to prevent the unlawful posting or blocking of any tidal

water, public right-of-way.

SECTION 8. Section 42-61.2-5 of the General Laws in Chapter 42-61.2 entitled "Video-

Lottery Games, Table Games and Sports Wagering" is hereby amended to read as follows:

42-61.2-5. Allocation of sports-wagering and online sports-wagering revenue.

(a) Notwithstanding the provisions of § 42-61-15, the division of lottery is authorized to

enter into an agreement to allocate sports-wagering revenue derived from sports wagering and

online sports wagering at the hosting facilities between the state, the state's authorized sports-

wagering vendor, and the host facilities. The allocation of sports-wagering revenue and online

sports-wagering revenue shall be:

(1) To the state, fifty-one percent (51%) of sports-wagering revenue and online sports-

wagering revenue;

(2) To the state's authorized sports-wagering vendor, thirty-two percent (32%) of sports-

wagering revenue and online sports-wagering revenue; and

(3) To the host facilities, seventeen percent (17%) of sports-wagering revenue and online

sports-wagering revenue.

(b) Sports-wagering revenue and online sports-wagering revenue allocated to the state shall

be deposited into the state lottery fund for administrative purposes and then the balance remaining

into the general fund.

($100,000) two hundred thousand dollars ($200,000) and the town of Tiverton shall be paid an

annual flat fee of one hundred thousand dollars ($100,000) two hundred thousand dollars

($200,000) in compensation for serving as the host communities for sports wagering.

SECTION 9. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled “Video-

Lottery Games, Table Games and Sports Wagering” is hereby amended to read as follows:

42-61.2-7. Division of revenue.

(a) Notwithstanding the provisions of Section § 42-61-15, the allocation of net terminal

income derived from video lottery games is as follows:

(1) For deposit in the general fund and to the Division fund for administrative purposes:

Net, terminal income not otherwise disbursed in accordance with subdivisions subsections (a)(2) -

- (a)(6) , inclusive of this section, or otherwise disbursed in accordance with subsections (g)(2) and

(h)(2) of this section;

(i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one percent

(0.19%), up to a maximum of twenty million dollars ($20,000,000), shall be equally allocated to

the distressed communities (as defined in Section § 45-13-12) provided that no eligible community

shall receive more than twenty-five percent (25%) of that community's currently enacted municipal

budget as its share under this specific subsection. Distributions made under this specific subsection

are supplemental to all other distributions made under any portion of General Laws Section § 45-

13-12. For the fiscal year ending June 30, 2008, distributions by community shall be identical to

the distributions made in the fiscal year ending June 30, 2007, and shall be made from general

appropriations. For the fiscal year ending June 30, 2009, the total state distribution shall be the

same total amount distributed in the fiscal year ending June 30, 2008, and shall be made from

general appropriations. For the fiscal year ending June 30, 2010, the total state distribution shall be

the same total amount distributed in the fiscal year ending June 30, 2009, and shall be made from

general appropriations, provided, however, that seven hundred eighty-four thousand four hundred

fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each

qualifying distressed community. For each of the fiscal years ending June 30, 2011, June 30, 2012,

and June 30, 2013, seven hundred eighty-four thousand four hundred fifty-eight dollars ($784,458)

of the total appropriation shall be distributed equally to each qualifying distressed community.

(ii) Five one hundredths of one percent (0.05%), up to a maximum of five million dollars

($5,000,000), shall be appropriated to property tax relief to fully fund the provisions of Section 44-

33-2.1 [repealed]. The maximum credit defined in subdivision § 44-33-9(2) shall increase to the

maximum amount to the nearest five dollar ($5.00) increment within the allocation until a

maximum credit of five hundred dollars ($500) is obtained. In no event shall the exemption in any

fiscal year be less than the prior fiscal year.

(iii) One and twenty-two one hundredths of one percent (1.22%) to fund Section § 44-34.1-

1, entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998,", to the maximum

amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event

shall the exemption in any fiscal year be less than the prior fiscal year.

(iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent

(0.10%), to a maximum of ten million dollars ($10,000,000), for supplemental distribution to

communities not included in subsection (a)(1)(i) of this section distributed proportionately on the

basis of general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30,

2008, distributions by community shall be identical to the distributions made in the fiscal year

ending June 30, 2007, and shall be made from general appropriations. For the fiscal year ending

June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010, and

thereafter, funding shall be determined by appropriation.

(2) To the licensed, video lottery retailer:

(a)(i) Prior to the effective date of the Newport Grand Master Contract, Newport Grand

twenty-six percent (26%), minus three hundred eighty-four thousand nine hundred ninety-six

dollars ($384,996);

(ii) On and after the effective date of the Newport Grand Master Contract, to the licensed,

video lottery retailer who is a party to the Newport Grand Master Contract, all sums due and payable

under said Master Contract, minus three hundred eighty-four thousand nine hundred ninety-six

dollars ($384,996).

(iii) Effective July 1, 2013, the rate of net terminal income payable to the licensed, video

lottery retailer who is a party to the Newport Grand Master Contract shall increase by two and one

quarter percent (2.25%) points. The increase herein shall sunset and expire on June 30, 2015, and

the rate in effect as of June 30, 2013, shall be reinstated.

(iv)(A) Effective July 1, 2015, the rate of net terminal income payable to the licensed video

lottery retailer who is a party to the Newport Grand Master Contract shall increase over the rate in

effect as of June 30, 2013, by one and nine-tenths (1.9) percentage points. (i.e., x% plus 1.9

percentage points equals (x + 1.9)%, where "x%" is the current rate of net terminal income payable

to the licensed, video lottery retailer who is a party to the Newport Grand Master Contract). The

dollar amount of additional net terminal income paid to the licensed video lottery retailer who is a

party to the Newport Grand Master Contract with respect to any Newport Grand Marketing Year

as a result of such increase in rate shall be referred to as "Additional Newport Grand Marketing

NTI."

(B) The excess, if any, of marketing expenditures incurred by the licensed, video lottery

retailer who is a party to the Newport Grand Master Contract with respect to a Newport Grand

Marketing Year over one million four hundred thousand dollars ($1,400,000) shall be referred to

as the "Newport Grand Marketing Incremental Spend." Beginning with the Newport Grand

Marketing Year that starts on July 1, 2015, after the end of each Newport Grand Marketing Year,

the licensed, video lottery retailer who is a party to the Newport Grand Master Contract shall pay

to the Division the amount, if any, by which the Additional Newport Grand Marketing NTI for such

Newport Grand Marketing Year exceeds the Newport Grand Marketing Incremental Spend for such

Newport Grand Marketing Year; provided however, that such video lottery retailer's liability to the

Division hereunder with respect to any Newport Grand Marketing Year shall never exceed the

Additional Newport Grand Marketing NTI paid to such video lottery retailer with respect to such

Newport Grand Marketing Year.

The increase in subsection 2(a)(iv) shall sunset and expire upon the commencement of the

operation of casino gaming at Twin River-Tiverton's facility located in the town of Tiverton, and

the rate in effect as of June 30, 2013, shall be reinstated.

(b)(i) Prior to the effective date of the UTGR master contract, to the present, licensed, video

lottery retailer at Lincoln Park, which is not a party to the UTGR master contract, twenty-eight and

eighty-five one hundredths percent (28.85%), minus seven hundred sixty-seven thousand six

hundred eighty-seven dollars ($767,687);

(ii) On and after the effective date of the UTGR master contract, to the licensed, video

lottery retailer that is a party to the UTGR master contract, all sums due and payable under said

master contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars

($767,687).

(3) Except for the period commencing on January 1, 2023, and expiring on June 30, 2043,

(i) To the technology providers that are not a party to the GTECH Master Contract as set forth and

referenced in P.L. 2003, ch. 32, seven percent (7%) of the net terminal income of the provider's

terminals; in addition thereto, technology providers that provide premium or licensed proprietary

content or those games that have unique characteristics, such as 3D graphics; unique math/game

play features; or merchandising elements to video lottery terminals may receive incremental

compensation, either in the form of a daily fee or as an increased percentage, if all of the following

criteria are met:

(A) A licensed, video lottery retailer has requested the placement of premium or licensed

proprietary content at its licensed, video lottery facility;

(B) The division of lottery has determined in its sole discretion that the request is likely to

increase net terminal income or is otherwise important to preserve or enhance the competitiveness

of the licensed, video lottery retailer;

licensed, proprietary-content video lottery terminals does not exceed ten percent (10%) of the total

number of video lottery terminals authorized at the respective licensed, video lottery retailer; and

(D) All incremental costs are shared between the division and the respective licensed, video

lottery retailer based upon their proportionate allocation of net terminal income. The division of

lottery is hereby authorized to amend agreements with the licensed, video lottery retailers, or the

technology providers, as applicable, to effect the intent herein.

(ii) To contractors that are a party to the master contract as set forth and referenced in P.L.

2003, ch. 32, all sums due and payable under said master contract; and

(iii) Notwithstanding paragraphs (i) and (ii), there shall be subtracted proportionately from

the payments to technology providers the sum of six hundred twenty-eight thousand seven hundred

thirty-seven dollars ($628,737) which shall be distributed pursuant to Section 42-61.2-7(b)(3)(iii).

With respect to the period commencing on January 1, 2023 and expiring on June 30, 2043,

(i) To the exclusive technology provider, all sums due and payable under the VLT

Agreement;

(ii) Notwithstanding paragraph (i), there shall be subtracted from the payments to the

exclusive technology provider the sum of six hundred twenty-eight thousand seven hundred thirty-

seven dollars ($628,737) which shall be distributed pursuant to Section 42-61.2-7(b)(3)(iii); and

(iii) To IGT, all sums due and payable under the Video Lottery Agreement.

(4)(A) Until video lottery games are no longer operated at the Newport Grand gaming

facility located in Newport, to the city of Newport one and one hundredth percent (1.01%) of net

terminal income of authorized Video Lottery Terminals at Newport Grand, except that effective

November 9, 2009, until June 30, 2013, the allocation shall be one and two tenths percent (1.2%)

of net terminal income of authorized Video Lottery Terminals at Newport Grand for each week the

facility operates video lottery games on a twenty-four-hour (24) basis for all eligible hours

authorized; and

(B) Upon commencement of the operation of video lottery games at the Tiverton gaming

facility, to the town of Tiverton one and forty-five hundredths percent (1.45%) of net terminal

income of authorized Video Lottery Terminals at the Tiverton gaming facility, subject to subsection

(g)(2); and

income of authorized Video Lottery Terminals at the Lincoln gaming facility except that:

(i) Effective November 9, 2009, until June 30, 2013, the allocation shall be one and forty-

five hundredths percent (1.45%) of net terminal income of authorized Video Lottery Terminals at

the Lincoln gaming facility for each week video lottery games are offered on a twenty-four-hour

(24) basis for all eligible hours authorized; and

(ii) Effective July 1, 2013, provided that the referendum measure authorized by P.L. 2011,

ch. 151, article 25 as amended, section 4, is approved statewide and in the Town of Lincoln, the

allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of

authorized Video Lottery Terminals at the Lincoln gaming facility, subject to subsection (h)(2);

and

(5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net

terminal income of authorized Video Lottery Terminals at the Lincoln gaming facility , up to a

maximum of ten million dollars ($10,000,000) per year, that shall be paid to the Narragansett Indian

Tribe for the account of a Tribal Development Fund to be used for the purpose of encouraging and

promoting: home ownership and improvement; elderly housing; adult vocational training; health

and social services; childcare; natural resource protection; and economic development consistent

with state law. Provided, however, such distribution shall terminate upon the opening of any

gaming facility in which the Narragansett Indians are entitled to any payments or other incentives;

and provided, further, any monies distributed hereunder shall not be used for, or spent on,

previously contracted debts; and

(6) Unclaimed prizes and credits shall remit to the general fund of the state; and

(7) Payments into the state's general fund specified in subsections (a)(1) and (a)(6) of this

section shall be made on an estimated monthly basis. Payment shall be made on the tenth day

following the close of the month except for the last month when payment shall be on the last

business day.

(b) Notwithstanding the above, the amounts payable by the Division to UTGR related to

the marketing program described in the UTGR master contract (as such may be amended from time

to time) shall be paid on a frequency agreed by the Division, but no less frequently than annually.

is authorized to fund the marketing program as described in the UTGR master contract.

(d) Notwithstanding the above, the amounts payable by the Division to the licensed, video

lottery retailer who is a party to the Newport Grand Master Contract related to the marketing

program described in the Newport Grand Master Contract (as such may be amended from time to

time) shall be paid on a frequency agreed by the Division, but no less frequently than annually.

(e) Notwithstanding anything in this chapter 61.2 of this title to the contrary, the director

is authorized to fund the marketing program as described in the Newport Grand Master Contract.

(f) Notwithstanding the provisions of Section § 42-61-15, but subject to Section § 42-61.2-

7(h) subsection (h) of this section, the allocation of net table-game revenue derived from table

games at the Lincoln gaming facility is as follows:

(1) For deposit into the state lottery fund for administrative purposes and then the balance

remaining into the general fund:

(i) Sixteen percent (16%) of net table-game revenue, except as provided in Section § 42-

61.2-7(f)(1)(ii) subsection (f)(1)(ii);

(ii) An additional two percent (2%) of net table-game revenue generated at the Lincoln

gaming facility shall be allocated starting from the commencement of table games activities by

such table-game retailer and ending, with respect to such table-game retailer, on the first date that

such table-game retailer's net terminal income for a full state fiscal year is less than such table-

game retailer's net terminal income for the prior state fiscal year, at which point this additional

allocation to the state shall no longer apply to such table-game retailer.

(2) To UTGR, net table-game revenue not otherwise disbursed pursuant to subsection

(f)(1); provided, however, on the first date that such table-game retailer's net terminal income for a

full state fiscal year is less than such table-game retailer's net terminal income for the prior state

fiscal year, as set forth in subsection (f)(1)(ii), one percent (1%) of this net table-game revenue

shall be allocated to the town of Lincoln for four (4), consecutive state fiscal years.

(g) Notwithstanding the provisions of Section 42-61-15, the allocation of net table-game

revenue derived from table games at the Tiverton gaming facility is as follows:

(1) Subject to subsection (g)(2) of this section, one percent (1%) of net table-game revenue

shall be allocated to the town of Tiverton;

(2) Fifteen and one-half percent (15.5%) of net table-game revenue shall be allocated to

the state first for deposit into the state lottery fund for administrative purposes and then the balance

remaining into the general fund; provided however, that beginning with the first state fiscal year

that the Tiverton gaming facility offers patrons video lottery games and table games for all of such

state fiscal year, for that initial state fiscal year and each subsequent state fiscal year that such

Tiverton gaming facility offers patrons video lottery games and table games for all of such state

fiscal year, if the town of Tiverton has not received an aggregate of three million dollars

($3,000,000) in the state fiscal year from net table-game revenues and net terminal income,

combined, generated by the Tiverton gaming facility ("Tiverton Minimum"), then the state shall

make up such shortfall to the town of Tiverton out of the state's percentage of net table-game

revenue set forth in this subsection (g)(2) and net terminal income set forth in subsections (a)(1)

and (a)(6), so long as that there has not been a closure of the Tiverton gaming facility for more than

thirty (30) consecutive days during such state fiscal year, and, if there has been such a closure, then

the Tiverton Minimum, if applicable, shall be prorated per day of such closure and any closure(s)

thereafter for that state fiscal year; notwithstanding the foregoing, with respect to fiscal year 2021,

because of the closure of the Tiverton gaming facility due to the COVID-19 pandemic, the town of

Tiverton shall receive no less than a total of three million dollars ($3,000,000) as an aggregate

payment for net, table-game revenues, net terminal income, and the shortfall from the state,

combined; provided further however, if in any state fiscal year either video lottery games or table

games are no longer offered at in the Tiverton gaming facility, then the state shall not be obligated

to make up the shortfall referenced in this subsection (g)(2); and

(3) Net, table-game revenue not otherwise disbursed pursuant to subsections (g)(1) and

(g)(2) of this section shall be allocated to Twin River-Tiverton.

(h) Notwithstanding the foregoing Section § 42-61.2-7(f) and superseding that section

effective upon the first date that the Tiverton gaming facility offers patrons video lottery games and

table games, the allocation of net table-game revenue derived from table games at the Lincoln

gaming facility shall be as follows:

(1) Subject to subsection (h)(2), one percent (1%) of net table-game revenue shall be

allocated to the town of Lincoln;

(2) Fifteen and one-half percent (15.5%) of net table-game revenue shall be allocated to

the state first for deposit into the state lottery fund for administrative purposes and then the balance

remaining into the general fund; provided however, that beginning with the first state fiscal year

that the Tiverton gaming facility offers patrons video lottery games and table games for all of such

state fiscal year, for that state fiscal year and each subsequent state fiscal year that the Tiverton

gaming facility offers patrons video lottery games and table games for all of such state fiscal year,

if the town of Lincoln has not received an aggregate of three million dollars ($3,000,000) in the

state fiscal year from net table-game revenues and net terminal income, combined, generated by

the Lincoln gaming facility ("Lincoln Minimum"), then the state shall make up such shortfall to the

town of Lincoln out of the state's percentage of net table-game revenue set forth in this subsection

(h)(2) and net terminal income set forth in subsections (a)(1) and (a)(6) of this section, so long as

that there has not been a closure of the Tiverton gaming facility for more than thirty (30)

consecutive days during such state fiscal year, and, if there has been such a closure, then the Lincoln

Minimum, if applicable, shall be prorated per day of such closure and any closure(s) thereafter for

that state fiscal year; provided further however, if in any state fiscal year either video lottery games

or table games are no longer offered at the Tiverton gaming facility, then the state shall not be

obligated to make up the shortfall referenced in this subsection (h)(2); and

(3) Net, table-game revenue not otherwise disbursed pursuant to subsections (h)(1) and

(h)(2) shall be allocated to UTGR.

SECTION 10. Section 44-1-7 of the General Laws in Chapter 44-1 entitled "State Tax

Officials" is hereby amended to read as follows:

44-1-7. Interest on delinquent payments.

(a) Whenever the full amount of any state tax or any portion or deficiency, as finally

determined by the tax administrator, has not been paid on the date when it is due and payable,

whether the time has been extended or not, there shall be added as part of the tax or portion or

deficiency interest at the rate as determined in accordance with subsection (b) of this section,

notwithstanding any general or specific statute to the contrary.

(b) Each January 1 the tax administrator shall compute the rate of interest to be in effect

for that calendar year by adding two percent (2%) to the prime rate, which was in effect on October

1 of the preceding year. In no event shall the rate of interest exceed twenty-one percent (21%) per

annum nor be less than eighteen percent (18%) per annum.

quoted by commercial banks to large businesses as determined by the board of governors of the

Federal Reserve System.

(d) Notwithstanding any provisions of the general laws to the contrary, the tax

administrator shall waive interest and penalty on the taxable portion of each Paycheck Protection

Program loan taxed pursuant to §§ 44-11-11(a)(1)(iv), § 44-14-11, and § 44-30-12(b)(8) of the

general laws and forgiven during tax year 2020 provided that the tax on that portion is paid in full

on or before March 31, 2022. The tax administrator shall make available suitable forms with

instructions for making tax payments on the taxable portion of such forgiven Paycheck Protection

Program loans.

SECTION 11. Section 44-11-11 of the General Laws in Chapter 44-11 entitled “'Net

income’ defined” is hereby amended to read as follows:

44-11-11. “Net income” defined.

(a)(1) "Net income" means, for any taxable year and for any corporate taxpayer, the taxable

income of the taxpayer for that taxable year under the laws of the United States, plus:

(i) Any interest not included in the taxable income;

(ii) Any specific exemptions;

(iii) The tax imposed by this chapter; and minus:

(iv) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck

Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus

Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or

any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount

of the loan forgiven exceeds $250,000; and minus:

(iv)(v) Interest on obligations of the United States or its possessions, and other interest

exempt from taxation by this state; and

(v)(vi) The federal net operating loss deduction.

(2) All binding federal elections made by or on behalf of the taxpayer applicable either

directly or indirectly to the determination of taxable income shall be binding on the taxpayer except

where this chapter or its attendant regulations specifically modify or provide otherwise. Rhode

Island taxable income shall not include the "gross-up of dividends" required by the federal Internal

Revenue Code to be taken into taxable income in connection with the taxpayer's election of the

foreign tax credit.

(b) A net operating loss deduction shall be allowed, which shall be the same as the net

operating loss deduction allowed under 26 U.S.C. § 172, except that:

(1) Any net operating loss included in determining the deduction shall be adjusted to reflect

the inclusions and exclusions from entire net income required by subsection (a) of this section and

§ 44-11-11.1;

(2) The deduction shall not include any net operating loss sustained during any taxable year

in which the taxpayer was not subject to the tax imposed by this chapter; and

(3) The deduction shall not exceed the deduction for the taxable year allowable under 26

U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other

taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the

five (5) succeeding taxable years.

this chapter, will be treated as they are under federal income tax law and shall not pay the amount

of the tax computed under § 44-11-2(a). Any income to shareholders of DISCs is to be treated in

the same manner as it is treated under federal income tax law as it exists on December 31, 1984.

(d) A corporation that qualifies as a "foreign sales corporation" (FSC) under the provisions

of subchapter N, 26 U.S.C. § 861 et seq., and that has in effect for the entire taxable year a valid

election under federal law to be treated as a FSC, shall not pay the amount of the tax computed

under § 44-11-2(a). Any income to shareholders of FSCs is to be treated in the same manner as it

is treated under federal income tax law as it exists on January 1, 1985.

(e) For purposes of a corporation's state tax liability, any deduction to income allowable

under 26 U.S.C. § 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer

for at least seven years. The division of taxation shall promulgate, in its discretion, rules and

regulations relative to the accelerated application of deductions under 26 U.S.C. § 1400Z-2(c).

SECTION 12. Section 44-14-11 of the General Laws in Chapter 44-14 entitled "'Gross

income’ defined" is hereby amended to read as follows:

44-14-11. “Gross income” defined.

"Gross income" includes all gains, profits, and income of the taxpayer from whatever

sources derived during the income period; provided, that gains from the sale or other disposition of

any property other than securities shall not be included in gross income, and losses from the sale

or other disposition of any property other than securities shall not be deducted from gross income.

For any taxable year beginning on or after January 1, 2020, gross income includes the amount of

any Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by

the Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations

Act, 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent

that the amount of the loan forgiven exceeds $250,000.

SECTION 13. Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Rhode

Island income of a resident individual" is hereby amended to read as follows:

44-30-12. Rhode Island income of a resident individual.

(a) General. The Rhode Island income of a resident individual means his or her adjusted

gross income for federal income tax purposes, with the modifications specified in this section.

(b) Modifications increasing federal adjusted gross income. There shall be added to federal

adjusted gross income:

(1) Interest income on obligations of any state, or its political subdivisions, other than

Rhode Island or its political subdivisions;

(2) Interest or dividend income on obligations or securities of any authority, commission,

or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the

extent exempted by the laws of the United States from federal income tax but not from state income

taxes;

(3) The modification described in § 44-30-25(g);

(4)(i) The amount defined below of a nonqualified withdrawal made from an account in

the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified

withdrawal is:

(A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal

Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-

6.1; and

(B) A withdrawal or distribution that is:

(I) Not applied on a timely basis to pay "qualified higher education expenses" as defined

in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;

(II) Not made for a reason referred to in § 16-57-6.1(e); or

(III) Not made in other circumstances for which an exclusion from tax made applicable by

Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover,

withdrawal, or distribution is made within two (2) taxable years following the taxable year for

which a contributions modification pursuant to subsection (c)(4) of this section is taken based on

contributions to any tuition savings program account by the person who is the participant of the

account at the time of the contribution, whether or not the person is the participant of the account

at the time of the transfer, rollover, withdrawal or distribution;

(ii) In the event of a nonqualified withdrawal under subsection (b)(4)(i)(A) or (b)(4)(i)(B)

of this section, there shall be added to the federal adjusted gross income of that person for the

taxable year of the withdrawal an amount equal to the lesser of:

(A) The amount equal to the nonqualified withdrawal reduced by the sum of any

administrative fee or penalty imposed under the tuition savings program in connection with the

nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the

person's federal adjusted gross income for the taxable year; and

(B) The amount of the person's contribution modification pursuant to subsection (c)(4) of

this section for the person's taxable year of the withdrawal and the two (2) prior taxable years less

the amount of any nonqualified withdrawal for the two (2) prior taxable years included in

computing the person's Rhode Island income by application of this subsection for those years. Any

amount added to federal adjusted gross income pursuant to this subdivision shall constitute Rhode

Island income for residents, nonresidents and part-year residents;

(5) The modification described in § 44-30-25.1(d)(3)(i);

(6) The amount equal to any unemployment compensation received but not included in

federal adjusted gross income; and

(7) The amount equal to the deduction allowed for sales tax paid for a purchase of a

qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6).; and

(8) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck

Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus

Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or

any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount

of the loan forgiven exceeds $250,000, including an individual’s distributive share of the amount

of a pass-through entity’s loan forgiveness in excess of $250,000.

federal adjusted gross income:

(1) Any interest income on obligations of the United States and its possessions to the extent

includible in gross income for federal income tax purposes, and any interest or dividend income on

obligations, or securities of any authority, commission, or instrumentality of the United States to

the extent includible in gross income for federal income tax purposes but exempt from state income

taxes under the laws of the United States; provided, that the amount to be subtracted shall in any

case be reduced by any interest on indebtedness incurred or continued to purchase or carry

obligations or securities the income of which is exempt from Rhode Island personal income tax, to

the extent the interest has been deducted in determining federal adjusted gross income or taxable

income;

(2) A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1);

(3) The amount of any withdrawal or distribution from the "tuition savings program"

referred to in § 16-57-6.1 that is included in federal adjusted gross income, other than a withdrawal

or distribution or portion of a withdrawal or distribution that is a nonqualified withdrawal;

(4) Contributions made to an account under the tuition savings program, including the

"contributions carryover" pursuant to subsection (c)(4)(iv) of this section, if any, subject to the

following limitations, restrictions and qualifications:

(i) The aggregate subtraction pursuant to this subdivision for any taxable year of the

taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint

return;

(ii) The following shall not be considered contributions:

(A) Contributions made by any person to an account who is not a participant of the account

at the time the contribution is made;

(B) Transfers or rollovers to an account from any other tuition savings program account or

from any other "qualified tuition program" under section 529 of the Internal Revenue Code, 26

U.S.C. § 529; or

(iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer's federal

adjusted gross income to less than zero (0);

(iv) The contributions carryover to a taxable year for purpose of this subdivision is the

excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition

savings program for all preceding taxable years for which this subsection is effective over the sum

of:

(A) The total of the subtractions under this subdivision allowable to the taxpayer for all

such preceding taxable years; and

(B) That part of any remaining contribution carryover at the end of the taxable year which

exceeds the amount of any nonqualified withdrawals during the year and the prior two (2) taxable

years not included in the addition provided for in this subdivision for those years. Any such part

shall be disregarded in computing the contributions carryover for any subsequent taxable year;

(v) For any taxable year for which a contributions carryover is applicable, the taxpayer

shall include a computation of the carryover with the taxpayer's Rhode Island personal income tax

return for that year, and if for any taxable year on which the carryover is based the taxpayer filed a

joint Rhode Island personal income tax return but filed a return on a basis other than jointly for a

subsequent taxable year, the computation shall reflect how the carryover is being allocated between

the prior joint filers;

(5) The modification described in § 44-30-25.1(d)(1);

(6) Amounts deemed taxable income to the taxpayer due to payment or provision of

insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36 or

other coverage plan;

(7) Modification for organ transplantation.

(i) An individual may subtract up to ten thousand dollars ($10,000) from federal adjusted

gross income if he or she, while living, donates one or more of his or her human organs to another

human being for human organ transplantation, except that for purposes of this subsection, "human

organ" means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract

modification that is claimed hereunder may be claimed in the taxable year in which the human

organ transplantation occurs.

(ii) An individual may claim that subtract modification hereunder only once, and the

subtract modification may be claimed for only the following unreimbursed expenses that are

incurred by the claimant and related to the claimant's organ donation:

(A) Travel expenses.

(B) Lodging expenses.

(iii) The subtract modification hereunder may not be claimed by a part-time resident or a

nonresident of this state;

(8) Modification for taxable Social Security income.

(i) For tax years beginning on or after January 1, 2016:

(A) For a person who has attained the age used for calculating full or unreduced social

security retirement benefits who files a return as an unmarried individual, head of household, or

married filing separate whose federal adjusted gross income for the taxable year is less than eighty

thousand dollars ($80,000); or

(B) A married individual filing jointly or individual filing qualifying widow(er) who has

attained the age used for calculating full or unreduced social security retirement benefits whose

joint federal adjusted gross income for the taxable year is less than one hundred thousand dollars

($100,000), an amount equal to the social security benefits includable includible in federal adjusted

gross income.

(ii) Adjustment for inflation. The dollar amount contained in subsections (c)(8)(i)(A) and

(c)(8)(i)(B) of this section shall be increased annually by an amount equal to:

(A) Such dollar amount contained in subsections (c)(8)(i)(A) and (c)(8)(i)(B) of this section

adjusted for inflation using a base tax year of 2000, multiplied by;

(B) The cost-of-living adjustment with a base year of 2000.

(iii) For the purposes of this section the cost-of-living adjustment for any calendar year is

the percentage (if any) by which the consumer price index for the preceding calendar year exceeds

the consumer price index for the base year. The consumer price index for any calendar year is the

average of the consumer price index as of the close of the twelve-month (12) period ending on

August 31, of such calendar year.

(iv) For the purpose of this section the term "consumer price index" means the last

consumer price index for all urban consumers published by the department of labor. For the purpose

of this section the revision of the consumer price index which is most consistent with the consumer

price index for calendar year 1986 shall be used.

(v) If any increase determined under this section is not a multiple of fifty dollars ($50.00),

such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a

married individual filing separate return, if any increase determined under this section is not a

multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple

of twenty-five dollars ($25.00);

(9) Modification for up to fifteen thousand dollars ($15,000) of taxable retirement income

from certain pension plans or annuities.

(i) For tax years beginning on or after January 1, 2017, a modification shall be allowed for

up to fifteen thousand dollars ($15,000) of taxable pension and/or annuity income that is included

in federal adjusted gross income for the taxable year:

(A) For a person who has attained the age used for calculating full or unreduced social

security retirement benefits who files a return as an unmarried individual, head of household, or

married filing separate whose federal adjusted gross income for such taxable year is less than the

amount used for the modification contained in subsection (c)(8)(i)(A) of this section an amount not

to exceed $15,000 of taxable pension and/or annuity income includable includible in federal

adjusted gross income; or

(B) For a married individual filing jointly or individual filing qualifying widow(er) who

has attained the age used for calculating full or unreduced social security retirement benefits whose

joint federal adjusted gross income for such taxable year is less than the amount used for the

modification contained in subsection (c)(8)(i)(B) of this section an amount not to exceed $15,000

of taxable pension and/or annuity income includable includible in federal adjusted gross income.

(ii) Adjustment for inflation. The dollar amount contained by reference in subsections

(c)(9)(i)(A) and (c)(9)(i)(B) of this section shall be increased annually for tax years beginning on

or after January 1, 2018 by an amount equal to:

(A) Such dollar amount contained by reference in subsections (c)(9)(i)(A) and (c)(9)(i)(B)

of this section adjusted for inflation using a base tax year of 2000, multiplied by;

(B) The cost-of-living adjustment with a base year of 2000.

(iii) For the purposes of this section, the cost-of-living adjustment for any calendar year is

the percentage (if any) by which the consumer price index for the preceding calendar year exceeds

the consumer price index for the base year. The consumer price index for any calendar year is the

average of the consumer price index as of the close of the twelve-month (12) period ending on

August 31, of such calendar year.

(iv) For the purpose of this section, the term "consumer price index" means the last

consumer price index for all urban consumers published by the department of labor. For the purpose

of this section, the revision of the consumer price index which is most consistent with the consumer

price index for calendar year 1986 shall be used.

(v) If any increase determined under this section is not a multiple of fifty dollars ($50.00),

such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a

married individual filing a separate return, if any increase determined under this section is not a

multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple

of twenty-five dollars ($25.00); and

(10) Modification for Rhode Island investment in opportunity zones. For purposes of a

taxpayer's state tax liability, in the case of any investment in a Rhode Island opportunity zone by

the taxpayer for at least seven (7) years, a modification to income shall be allowed for the

incremental difference between the benefit allowed under 26 U.S.C. § 1400Z-2(b)(2)(B)(iv) and

the federal benefit allowed under 26 U.S.C. § 1400Z-2(c).

(d) Modification for Rhode Island fiduciary adjustment. There shall be added to, or

subtracted from, federal adjusted gross income (as the case may be) the taxpayer's share, as

beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44-

30-17.

(e) Partners. The amounts of modifications required to be made under this section by a

partner, which relate to items of income or deduction of a partnership, shall be determined under §

44-30-15.

SECTION 14. Sections 1 through 8 of this article shall take effect July 1, 2021. Sections 9

through 13 of this article shall take effect upon passage.