| Chapter 216 |
| 2024 -- S 2214 SUBSTITUTE A AS AMENDED Enacted 06/24/2024 |
| A N A C T |
| RELATING TO BUSINESSES AND PROFESSIONS -- FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTER ACT OF 2024 |
Introduced By: Senators McKenney, Sosnowski, Picard, Gallo, and LaMountain |
| Date Introduced: January 24, 2024 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS" |
| is hereby amended by adding thereto the following chapter: |
| CHAPTER 9394 |
| FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTER ACT |
| OF 2024 |
| 5-9394-1. Short title. |
| This chapter shall be known and may be cited as the “Facilitating Business Rapid Response |
| to State Declared Disaster Act of 2024.” |
| 5-9394-2. Definitions. |
| As used in this chapter, the following terms shall have the following meanings: |
| (1) “'Critical infrastructure” means property and equipment located in this state that is |
| owned or used by communications networks, cable, video, or broadband networks; gas and electric |
| distribution systems and water pipelines, railways, public roads and bridges and related support |
| facilities that service multiple customers or citizens including, but not limited to, real and personal |
| property such as buildings, offices, lines, poles, pipes, structures, and equipment. |
| (2) “Declared state disaster or emergency” means a disaster or emergency event for which |
| a governor’s state of emergency proclamation has been issued or for which a presidential |
| declaration of a federal major disaster or emergency has been issued. |
| (3) “Disaster or emergency-related work” means repairing, renovating, installing, building, |
| rendering services or other business activities that relate to critical infrastructure that has been |
| damaged, destroyed or lost as a result of the declared state disaster or emergency during the disaster |
| period. |
| (4) “Disaster period” means a period that begins within ten (10) days of the first day of the |
| governor’s proclamation or the president’s declaration (whichever occurs first) and that extends for |
| a period of sixty (60) calendar days after the end of the declared disaster or emergency period. |
| (5) “Out-of-state business” means a business entity that, except for disaster or emergency- |
| related work, has no presence in the state and conducts no business in the state whose services are |
| requested by a registered business or by a state or local government for purposes of performing |
| disaster or emergency-related work in the state. This definition shall also include a business entity |
| that is affiliated with the registered business in the state solely through common ownership. The |
| “out-of-state business” has no registrations or tax filings or nexus in the state prior to the declared |
| state disaster or emergency, other than disaster or emergency-related work during the tax year |
| immediately preceding the declared state disaster or emergency. |
| (6) “Out-of-state employee” means an employee who does not work in the state, except for |
| disaster or emergency-related work during the disaster response period. |
| (7) “Registered business in the state” or “registered business” means a business entity that |
| is currently registered to do business in the state prior to the declared state disaster or emergency. |
| 5-9394-3. Obligations, rights and duties. |
| (a) An out-of-state business that conducts operations within the state for purposes of |
| performing work or services on critical infrastructure damaged, destroyed, or lost as a result of a |
| declared state disaster or emergency during the disaster period shall not be considered to have |
| established a level of presence that would require that business to register, file, and remit state or |
| local taxes or that would require that business or its out-of-state employees to be subject to the state |
| telecommunications technician, contractor, or installer licensing requirements as long as they are |
| under the supervision of the registered business. This exemption includes any state or local |
| telecommunications business licensing or registration requirements or state and local taxes or fees |
| such as unemployment insurance, state or local occupational telecommunications technician |
| licensing fees, and use tax on equipment brought into the state on a temporary basis that is used |
| during the disaster period as well as public service commission or secretary of state licensing and |
| regulatory requirements. For purposes of any state or local tax on or measured by, in whole or in |
| part, net or gross income or receipts, all activity of the out-of-state business that is conducted in |
| this state, pursuant to this chapter shall be disregarded with respect to any filing requirements for |
| such tax, including the filing required for a unitary or combined group of which the out-of-state |
| business may be a part. For purposes of apportioning income, revenue, or receipts, the performance |
| by an out-of-state business of any work pursuant to this chapter, shall not be sourced to or shall not |
| otherwise impact or increase the amount of income, revenue, or receipts apportioned to this state. |
| (b) Any out-of-state employee shall not be considered to have established residency or a |
| presence in the state that would require that person or that person’s employer to file and pay income |
| taxes or to be subjected to income tax withholdings or to file and pay any other state or local tax or |
| fee during the disaster period. This exemption includes any related state or local employer |
| withholding and remittance obligations. |
| (c) Out-of-state businesses and out-of-state employees shall be required to pay transaction |
| taxes and fees including, but not limited to, fuel taxes or sales and use taxes, except use tax on |
| equipment specified in subsection (a) of this section, hotel taxes, car rental taxes or fees unless such |
| taxes or fees are otherwise exempted during a disaster period. |
| (d) Any out-of- state business or out-of-state employee that remains in the state after the |
| disaster period will become subject to the state’s normal standards for establishing presence, |
| residency, or doing business in the state and will therefore become responsible for any business or |
| employee tax requirements that ensue. |
| 5-9394-4. Administration. |
| (a) Notification of out-of-state business during disaster period. |
| (1) The out-of-state business that enters the state shall, upon request, provide to the |
| department of business regulation a statement that it is in the state for purposes of responding to |
| the disaster or emergency, which statement shall include the business name, state of domicile, |
| principal business address, federal tax identification number, date of entry, and contact information. |
| (2) A registered business in the state shall, upon request, provide the information required |
| in subsection (a)(1) of this section for any affiliate that enters the state. The notification shall also |
| include contact information for the registered business in the state. |
| (b) Notification of intent to remain in state. An out-of-state business or an employee who |
| or that remains in the state after the disaster period shall complete state and local registration, |
| licensing, and filing requirements that ensue as a result of establishing the requisite business |
| presence or residency in the state applicable under the existing rules. |
| (c) Procedures. The department of business regulation may promulgate reasonable and |
| necessary rules and regulations as well as develop and issue forms or online processes to implement |
| these administrative procedures. |
| SECTION 2. This act shall take effect upon passage. |
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| LC004192/SUB A |
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