law25278-06

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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 ECONOMIC DEVELOPMENT

SECTION 1. Sections 5-23-2 and 5-23-6 of the General Laws in Chapter 5-23 entitled

"Holiday Business" are hereby amended to read as follows:

5-23-2. Licenses for holiday business.

(a) A retail establishment may be open on any day of the year except as specifically

prohibited herein. A retail establishment shall not be open on a holiday unless licensed by the

appropriate town council pursuant to this section. The city or town council of any city or town shall

grant holiday licenses for the sale by retail establishments. No license shall be issued on December

25 of any year or on Thanksgiving Day, except to:

(1) Pharmacies licensed under chapter 19.1 of this title; provided, however, that no drug

(as defined in § 5-19.1-2) or controlled substance (as defined in § 5-19.1-2) requiring a prescription

(as defined in § 5-19.1-2) shall be dispensed or sold unless a licensed pharmacist-in-charge (as

defined in § 5-19.1-2) is available on the premises;

(2) Retail establishments that principally sell food products as defined in § 44-18-30(9) and

that employ fewer than six (6) employees per shift at any one location;

(3) Retail establishments principally engaged in the sale of cut flowers, floral products,

plants, shrubs, trees, fertilizers, seeds, bulbs, and garden accessories;

(4) Retail establishments principally engaged in the sale and/or rental of video cassette

tapes; and

(5)(4) Retail establishments principally engaged in the preparation or sale of bakery

products.

(b) Retail establishments licensed pursuant to this section may be permitted to open for

business during holidays on their normal business working hours.

provisions of chapter 1 of title 25, entitled “Holidays and Days of Special Observance,” and those

establishments may sell any and all items sold in the ordinary course of business with the exception

of alcoholic beverages.

(d) All employees engaged in work during Sundays or holidays pursuant to the provisions

of this section shall receive from their employer no less than time and a half for the work so

performed and shall be guaranteed at least a minimum of four (4) hours employment; except those

employees referred to in § 28-12-4.3(a)(4), provided that the work performed by the employee is

strictly voluntary and refusal to work for any retail establishment on a Sunday or holiday is not a

ground for discrimination, dismissal, or discharge or any other penalty upon the employee. The city

or town council may fix and cause to be paid into the city or town treasury for each license issued

pursuant to this section a fee not to exceed the sum of one hundred dollars ($100) and may fix the

time or times when the license granted terminates; provided, that the city or town council shall not

charge a licensing fee to any charitable, benevolent, educational, philanthropic, humane, patriotic,

social service, civic, fraternal, police, fire, labor, or religious organization that is not operated for

profit.

(e) Retail establishments engaged principally in the preparation or sale of bakery products

and pharmacies shall be licensed prior to the sale of those products in accordance with this section;

provided, that the time and one half and voluntary work provisions do not apply.

(f)(c) Each city or town council shall fix, limit, and specify those rules, regulations, and

conditions relating to the granting, holding, and exercising those licenses as it deems necessary or

advisable and as are not inconsistent with law, and may suspend or revoke any license granted by

it for more than two (2) violations of those rules, regulations, and conditions during a calendar year.

(g)(d) Each city or town shall grant Class A licenses authorizing retail establishments that

sell alcoholic beverages for consumption off of the premises within its jurisdiction to sell on

Sundays, alcoholic beverages in accordance with the terms of this chapter and that of title 3;

provided that it shall not permit such sale prior to the hour of twelve noon (12:00 p.m.) or on

Christmas day, if Christmas shall occur on a Sunday; provided, further, that no employee shall be

required to work and refusal to work on a Sunday shall not be the grounds for discrimination,

dismissal, discharge, deduction of hours, or any other penalty.

5-23-6. Enforcement — Penalties.

(a) Upon complaint filed with the director of labor and training by any employee or any

consumer, or if a minor, by his or herthe minor’s parent or guardian, or by the lawful collective

bargaining representative of an employee, that a licensee under this chapter person, firm, or

corporation has violated the terms of § 5-23-2, the director shall cause the complaint to be

investigated, and if satisfied that a probable violation has occurred, shall issue a complaint against

the licensee person, firm, or corporation with a notice for a hearing. The hearing shall be held before

a hearing officer of the department of labor and training. If the director concludes on the basis of

the hearing record that a violation has occurred, he or shethedirector shall issue a cease and desist

order to the licensee person, firm, or corporation, or he or shethe director shall refer the complaint

to the attorney general for appropriate action as provided in subsection (c) of this section. The

director shall issue regulations in conformity with law and preserving the rights of due process of

all parties to implement the provisions of this subsection.

(b) Every licensed or unlicensed person, firm, or corporation, including its officers and

officials, who or that violates any of the provisions of his, her, or its license or the provisions of

this chapter, except as set forth in subsection (a) of this section, shall be fined not exceeding five

hundred dollars ($500) for the first offense and not exceeding one thousand dollars ($1,000) for

each additional offense.

of the provisions of this chapter, praying for criminal or civil injunctive or other relief, may be

instituted in the superior court by any city or town or by the attorney general.

(d) The penalty for opening and operating a business on December 25th of any year or on

Thanksgiving Day, unless excepted, is, in addition to subsection (b) of this section, a fine not

exceeding thirty percent (30%) of the sales or proceeds for that day.

SECTION 2. Sections 5-23-3, 5-23-4 and 5-23-5 of the General Laws in Chapter 5-23

entitled "Holiday Business" are hereby repealed.

5-23-3. Works of necessity for which license not required.

A license is not required for the sale upon a holiday of gasoline, oil, grease, automotive

parts, automotive servicing, or automotive accessories, or for the conducting on that day by any

farmers’ cooperative association of a wholesale auction market of fruit, vegetables, and farm

products, all of which are declared to be works of necessity.

5-23-4. Terms and conditions of license — Revocation.

Any city or town council in each case of granting the license shall fix, limit, and specify in

the license the hours of the day during which the licensee or licensees may operate and may make

those rules, regulations, and conditions relative to the granting, holding, and exercising those

licenses that it deems necessary or advisable and that are not inconsistent with law, and may at any

time at its pleasure suspend or revoke the license that it granted. The license shall be displayed in

a conspicuous place on the premises licensed.

5-23-5. Place of operation — Delivery carts.

The license shall not authorize any sale, rental, or operation at any place not specified in

the license. The license is deemed to include permission to deliver by means of or sell from any

cart or other vehicle, ice, milk, or newspapers; provided the number of carts or vehicles to be used

for that purpose shall be specified in the license and there shall be displayed on each cart or vehicle

while in that use any evidence that the city or town council prescribes that it is being used pursuant

to that license.

SECTION 3. Section 5-50-4 of the General Laws in Chapter 5-50 entitled "Health Clubs"

is hereby amended to read as follows:

5-50-4. Contract contents — Notice to buyer of right to cancel contract — Right of contract

cancellation — Refund.

(a) A copy of every health club contract shall be delivered to the buyer at the time the

contract is signed.

(b)(1) All health club contracts must be in writing signed by the buyer; must designate the

date on which the buyer actually signs the contract; and must contain a statement of the buyer’s

rights that substantially complies with this section.

(2) The statement must appear in the contract under the conspicuous caption “BUYER’S

RIGHT TO CANCEL,” and read as follows:

“If you wish to cancel this contract, you may cancel in person, by electronic mail, or by

mail to the seller. You must give notice, in writing, that you do not wish to be bound by the contract.

This notice must be delivered, electronically transmitted, or mailed before midnight of the tenth

(10th) business day after the date of the contract so entered into. All cancellations must be delivered,

electronically transmitted, or mailed to:(Insert name, electronic mail address, and mailing address

of health club).”

(3) Proof of in-person cancellation shall be effectuated by writing “cancellation” and the

date of cancellation across the contract.

(4) The buyer shall receive a copy of the contract.

(5) The signature of the person employed by the health club who registers the cancellation

must also appear on the contract.

before midnight of the tenth (10th) day after the date of the contract so entered into. The notice of

the buyer’s cancellation of his or herthe buyer’s contract shall be in writing and shall be made in

person or by electronic mail to the seller at an electronic mail address that shall be specified in the

contract or by mail to the seller at the address specified in the contract.

(d) Every contract for health club services shall provide clearly and conspicuously, in

writing, that after the expiration of the ten-day (10) period for cancellation as provided in subsection

(b)(2):

(1) The buyer shall be relieved from any and all obligations under the contract, and shall

be entitled to a refund of any prepaid membership under the contract if:

(i) A buyer relocates further than fifteen (15) miles from a comparable health club facility

operated by the seller;

(ii) If a health club facility relocates further than fifteen (15) miles from its current location,

or the seller does not maintain a health club service within a fifteen (15) mile radius from its current

location; or

(iii) If the health club services or facilities are not available to the buyer because the seller

fails to open a planned health club or location, permanently discontinues operation of the health

club or location, or substantially changes the operation;

(2) If a buyer becomes significantly physically or medically disabled for a period in excess

of three (3) months during the membership term, he or shethe buyer has the option:

(i) To be relieved of liability for payment on that portion of the contract term for which the

purchaser is disabled and receive a full refund of any prepaid membership on the contract; or

(ii) To extend the duration of the contract at no additional cost for a period equal to the

duration of the disability. The health club may require that a doctor’s certificate be submitted as

verification of the disability;

(3) In the event of the buyer’s death, his or herthe buyer’s estate shall be relieved of any

further obligation for payment under the contract and shall be entitled to a refund for any prepaid

membership for the unused portion of the contract. The health club may require verification of

death;

(4) In the event of a sale of health club ownership, the contract is voidable at the option of

the buyer.

(e) A health club contract that does not comply with the provisions of this chapter is

voidable at the option of the buyer.

(f) Upon cancellation pursuant to this section, the buyer shall be free of any and all

obligations under the contract, and any prepaid monies pursuant to this contract shall be refunded

within fifteen (15) business days of receipt of the notice of cancellation. The right of cancellation

shall not be affected by the terms of the contract and may not be waived or surrendered.

(g) Notice of the buyer’s right to cancel and the method of cancellation under this section

shall also be posted clearly and conspicuously on the premises of the health club.

SECTION 4. Section 5-78-2 of the General Laws in Chapter 5-78 entitled "Dating

Services" is hereby amended to read as follows:

5-78-2. Contract requirements.

(a) Each contract for social referral services shall provide that such contract may be

cancelled at any time up until midnight of the third (3rd) business day after the date of receipt by

the buyer of a copy of the written contract, by written notice, delivered by electronic mail to the

seller at an electronic mail address that shall be specified in the contract or by certified or registered

United States mail to the seller at an address that shall be specified in the contract.

(b)(1) In every contract for social referral services, the seller shall furnish to the buyer a

fully completed copy of the contract at the time of its execution, which shows the date of the

transaction and contains the name, electronic mail address, and address of the seller, and in the

immediate proximity to the space reserved in the contract for the signature of the buyer and in not

less than ten-point (10) boldface type, a statement in substantially the following form:

“You, the buyer, may cancel this contract at any time prior to midnight of the third business

day after your receipt of this contract. See the attached notice of cancellation for an explanation of

this right.”

(2) At the time the buyer signs the social referral services contract, a statement captioned

"Notice of Cancellation" shall be contained in the contract and shall contain, in not less than ten-

point (10) boldface type, the following information and statements:

“Notice of Cancellation”

“________________________________________ (Date of Transaction)

You may cancel this contract, without any penalty or obligation, at any time prior to

midnight of the third business day after your receipt of this contract by mailing this signed and

dated notice of cancellation by certified or registered United States mail to the seller at the following

address: __________________________. You may also cancel this contract, without any penalty

or obligation, at any time prior to midnight of the third business day after your receipt of this

contract by electronically transmitting this contract by electronic mail to the seller at the following

electronic mail address:________________________________________________. If you cancel,

any payments made by you under the contract will be returned within ten (10) business days

following receipt by the seller of your cancellation notice.”

(3) All moneys paid pursuant to any contract for social referral services shall be refunded

within ten (10) business days of receipt of the notice of cancellation.

or manner.

SECTION 5. Sections 42-64.20-5 and 42-64.20-10 of the General Laws in Chapter 42-

64.20 entitled "Rebuild Rhode Island Tax Credit" are hereby amended to read as follows:

42-64.20-5. Tax credits.

(a) An applicant meeting the requirements of this chapter may be allowed a credit as set

forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of

the general laws for a qualified development project.

(b) To be eligible as a qualified development project entitled to tax credits, an applicant’s

chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the

time of application, that:

(1) The applicant has committed a capital investment or owner equity of not less than

twenty percent (20%) of the total project cost;

(2) There is a project financing gap in which after taking into account all available private

and public funding sources, the project is not likely to be accomplished by private enterprise

without the tax credits described in this chapter; and

(3) The project fulfills the state’s policy and planning objectives and priorities in that:

(i) The applicant will, at the discretion of the commerce corporation, obtain a tax

stabilization agreement from the municipality in which the real estate project is located on such

terms as the commerce corporation deems acceptable;

(ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied

by at least one business employing at least 25 full-time employees after construction or such

additional full-time employees as the commerce corporation may determine; (B) Is a multi-family

residential development in a new, adaptive reuse, certified historic structure, or recognized

historical structure consisting of at least 20,000 square feet and having at least 20 residential units

in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic

structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at

least one business, subject to further definition through rules and regulations promulgated by the

commerce corporation; and

(iii) Involves a total project cost of not less than $5,000,000, except for a qualified

development project located in a hope community or redevelopment area designated under § 45-

32-4 in which event the commerce corporation shall have the discretion to modify the minimum

project cost requirement.

(4) Until July 1, 2025, pursuant to P. L. 2022 ch. 271 and P. L. 2022 ch. 272, for

construction projects in excess of ten million dollars ($10,000,000), all construction workers shall

be paid in accordance with the wages and benefits required pursuant to chapter 13 of title 37 with

all contractors and subcontractors required to file certified payrolls on a monthly basis for all work

completed in the preceding month on a uniform form prescribed by the director of labor and

training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a

material violation and a material breach of the agreement with the state. The commerce corporation,

in consultation with the director of labor and training and the tax administrator, shall promulgate

such rules and regulations as are necessary to implement the enforcement of this subsection. The

provisions of this subsection shall expire and sunset on July 1, 2025.

(5) Notwithstanding any general or special law or rule or regulation to the contrary, for

construction projects awarded a tax credit agreement on or after July 1, 2025, and involving a

budget of direct hard construction costs (as defined in § 44-33.6-2) in excess of twenty-five million

dollars ($25,000,000), all construction workers shall be paid in accordance with the wages and

benefits required pursuant to chapter 13 of title 37 with all contractors and subcontractors required

to file certified payrolls on a monthly basis for all work completed in the preceding month on a

uniform form prescribed by the director of labor and training. Failure to follow the requirements

pursuant to chapter 13 of title 37 shall constitute a material violation and a material breach of the

agreement with the state. The commerce corporation, in consultation with the director of labor and

training and the tax administrator, shall promulgate such rules and regulations as are necessary to

implement the enforcement of this subsection.

for the issuance of rebuild RI tax credits for each of the following:

(1) Qualified development projects that involve certified historic structures;

(2) Qualified development projects that involve recognized historical structures;

(3) Qualified development projects that involve at least one manufacturer; and

(4) Qualified development projects that include affordable housing or workforce housing.

(d) Applications made for a historic structure or recognized historic structure tax credit

under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of

taxation, at the expense of the commerce corporation, shall provide communications from the

commerce corporation to those who have applied for and are in the queue awaiting the offer of tax

credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax

credit program.

(e) Applicants (1) Who have received the notice referenced in subsection (d) above and

who may be eligible for a tax credit pursuant to chapter 33.6 of title 44; (2) Whose application

involves a certified historic structure or recognized historical structure; or (3) Whose project is

occupied by at least one manufacturer shall be exempt from the requirements of subsections

(b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants:

(i) The division of taxation shall remain responsible for determining the eligibility of an

applicant for tax credits awarded under chapter 33.6 of title 44;

(ii) The commerce corporation shall retain sole authority for determining the eligibility of

an applicant for tax credits awarded under this chapter; and

(iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the

annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this

subsection (e); and

(iv) No tax credits shall be awarded under this chapter unless the commerce corporation

receives confirmation from the department of labor and training that there has been compliance

with the prevailing wage requirements set forth in subsection (b) of this section.

(f) Maximum project credit.

(1) For qualified development projects, the maximum tax credit allowed under this chapter

shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to

close a project financing gap (after taking into account all other private and public funding sources

available to the project), as determined by the commerce corporation.

(2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000)

for any qualified development project under this chapter; except as provided in subsection (f)(3) of

this section; provided however, any qualified development project that exceeds the project cap upon

passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further

increased. No building or qualified development project to be completed in phases or in multiple

projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all

phases or projects involved in the rehabilitation of the building. Provided, however, that for

purposes of this subsection and no more than once in a given fiscal year, the commerce corporation

may consider the development of land and buildings by a developer on the “I-195 land” as defined

in § 42-64.24-3(6) as a separate, qualified development project from a qualified development

project by a tenant or owner of a commercial condominium or similar legal interest including

leasehold improvement, fit out, and capital investment. Such qualified development project by a

tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be

exempted from subsection (f)(1)(i) of this section.

(3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars

($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter

into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that

project is approved for credits pursuant to this chapter by the commerce corporation.

(4) For qualified development projects involving the development of housing and mixed

use projects involving housing which are restricted to require at least twenty percent (20%) of the

housing units being affordable housing or workforce housing development for residents making no

more than between eighty percent (80%) and one hundred twenty percent (120%) of the area

median income (AMI) shall be allowed sales and use tax exemptions of up to thirty percent (30%)

of the maximum project credit in addition to the maximum project credit of fifteen million dollars

($15,000,000) pursuant to this chapter. Any sales and use tax exemptions allowed in addition to the

maximum project credit shall be for purchases made by June 30, 2028.

(g) Credits available under this chapter shall not exceed twenty percent (20%) of the project

cost, provided, however, that the applicant shall be eligible for additional tax credits of not more

than ten percent (10%) of the project cost, if the qualified development project meets any of the

following criteria or other additional criteria determined by the commerce corporation from time

to time in response to evolving economic or market conditions:

(1) The project includes adaptive reuse or development of a recognized historical structure;

(2) The project is undertaken by or for a targeted industry;

(3) The project is located in a transit-oriented development area;

(4) The project includes residential development of which at least twenty percent (20%) of

the residential units are designated as affordable housing or workforce housing;

(5) The project includes the adaptive reuse of property subject to the requirements of the

industrial property remediation and reuse act, § 23-19.14-1 et seq.; or

(6) The project includes commercial facilities constructed in accordance with the minimum

environmental and sustainability standards, as certified by the commerce corporation pursuant to

Leadership in Energy and Environmental Design or other equivalent standards.

(h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter,

inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed

two hundred twenty-five million dollars ($225,000,000), excluding any tax credits allowed

pursuant to subsection (f)(3) of this section.

(i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the

project is placed in service.

(j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer

in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent

(15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable

year.

(k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total

tax liability for the year in which the relevant portion of the credit is allowed, the amount that

exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for

the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed

to a partnership, a limited liability company taxed as a partnership, or multiple owners of property

shall be passed through to the persons designated as partners, members, or owners respectively pro

rata or pursuant to an executed agreement among persons designated as partners, members, or

owners documenting an alternate distribution method without regard to their sharing of other tax

or economic attributes of such entity.

(l) The commerce corporation, in consultation with the division of taxation, shall establish,

by regulation, the process for the assignment, transfer, or conveyance of tax credits.

(m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer

for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from

taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation

for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds,

without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a

natural person, the seller’s tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable,

for the year of revocation, or adjustment, shall be increased by including the total amount of the

sales proceeds without proration.

(n) The tax credit allowed under this chapter may be used as a credit against corporate

income taxes imposed under chapter 11, 13, 14, or 17 of title 44, or may be used as a credit against

personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such

as a partnership, a limited liability company taxed as a partnership, or multiple owners of property.

(o) In the case of a corporation, this credit is only allowed against the tax of a corporation

included in a consolidated return that qualifies for the credit and not against the tax of other

corporations that may join in the filing of a consolidated tax return.

(p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem

this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division

of taxation, in consultation with the commerce corporation, shall establish by regulation a

redemption process for tax credits.

(q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the

commerce corporation, be exempt from sales and use taxes imposed on the purchase of the

following classes of personal property only to the extent utilized directly and exclusively in the

project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles;

or (2) Other materials, including construction materials and supplies, that are depreciable and have

a useful life of one year or more and are essential to the project.

(r) The commerce corporation shall promulgate rules and regulations for the administration

and certification of additional tax credit under subsection (g), including criteria for the eligibility,

evaluation, prioritization, and approval of projects that qualify for such additional tax credit.

(s) The commerce corporation shall not have any obligation to make any award or grant

any benefits under this chapter.

42-64.20-10. Sunset.

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

2025 2026.

SECTION 6. 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, 2025 2026.

SECTION 7. 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, 2025 2026.

SECTION 8. 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,

2025 2026.

SECTION 9. 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, 2025 2026.

SECTION 10. 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, 2025 2028.

SECTION 11. Section 42-64.26-3 of the General Laws in Chapter 42-64.26 entitled "Stay

Invested in RI Wavemaker Fellowships" is hereby amended to read as follows:

42-64.26-3. Definitions.

As used in this chapter:

(1) “Applicant” means an eligible graduate who applies for a tax credit for education loan

repayment expenses under this chapter.

(2) “Award” means a tax credit awarded by the commerce corporation to an applicant as

provided under this chapter.

(3) “Commerce corporation” means the Rhode Island commerce corporation established

pursuant to chapter 64 of this title.

(4) “Eligibility period” means a term of up to four (4) consecutive service periods

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

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

(5) “Eligibility requirements” means the following qualifications or criteria required for an

applicant to claim an award under this chapter:

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

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

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

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

located in this state throughout the eligibility period, whose employment is:

(A) For work in one or more of the following covered fields: life, natural or environmental

sciences; computer, information or software technology; advanced mathematics or finance;

engineering; industrial design or other commercially related design field; or medicine or medical

device technology;

(B) As a teacher; or

(6) “Eligible expenses” or “education loan repayment expenses” means annual higher

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

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

repay for attendance at a postsecondary institution of higher learning.

(7) “Eligible graduate” means an individual who meets the eligibility requirements under

this chapter.

(8) “Full-time employee” means:

(i) A a person who is employed by a business for consideration for a minimum of at least

thirty-five (35) hours per week, or who renders any other standard of service generally accepted by

custom or practice as full-time employment, or who is employed by a professional employer

organization pursuant to an employee leasing agreement between the business and the professional

employer organization for a minimum of thirty-five (35) hours per week, or who renders any other

standard of service generally accepted by custom or practice as full-time employment, and whose

wages are subject to withholding; or

(ii) A healthcare applicant, as defined pursuant to the provisions of this section, who works

or professionally provides healthcare services for a minimum of thirty-five (35) hours per week as

a sole proprietor, as a partner in a healthcare service partnership, or as a member in a single member

limited liability company ("LLC") to include any healthcare applicant who has completed an

application pursuant to the provisions of § 42-64.26-5 on or after July 1, 2022.

(9) “Fund” refers to the “Stay Invested in RI Wavemaker Fellowship Fund” established

pursuant to § 42-64.26-4(a).

(10) “Healthcare applicant” means any applicant who meets the eligibility requirements

and works as a full-time employee or in a capacity as defined in subsection 8(ii) of this section, as

a high-demand healthcare practitioner or mental health professional, including, but not limited to,

clinical social workers and mental health counselors licensed by the department of health, and as

defined in regulations to be promulgated by the commerce corporation, in consultation with the

executive office of health and human services, pursuant to chapter 35 of this title.

(11) “Primary care” means healthcare services that cover a range of prevention, wellness,

and treatment for common illnesses and injuries. Primary care includes patients making an initial

approach to a healthcare professional for treatment as well as long-term relationships established

between a patient and a healthcare professional and may include family medicine or medical care,

general internal medicine or medical care, and general medical practice.

(12) “Rhode Island-based employer” means: (i) An employer having a principal place of

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

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

tax year.

(13) “Service period” means a twelve-month (12) period beginning on the date that an

eligible graduate receives initial notice of award under this chapter.

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

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

institution of higher learning.

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

(16) “Teacher” shall have the meaning prescribed to it in rules and regulations to be

promulgated by the commerce corporation in consultation with the Rhode Island department of

elementary and secondary education.

SECTION 12. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled "Stay

Invested in RI Wavemaker Fellowships" 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,

2025 2026.

SECTION 13. 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, 2025 2026.

SECTION 14. 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, 2025 2026.

SECTION 15. Section 44-33.6-3 of the General Laws in Chapter 44-33.6 entitled "Historic

Preservation Tax Credits 2013" is hereby amended to read as follows:

44-33.6-3. Tax credit.

(a) Subject to the maximum credit provisions set forth in subsections (c) and (d) below,

any person, firm, partnership, trust, estate, limited liability company, corporation (whether for

profit or nonprofit) or other business entity that incurs qualified rehabilitation expenditures for the

substantial rehabilitation of a certified historic structure, provided the rehabilitation meets standards

consistent with the standards of the Secretary of the United States Department of the Interior for

rehabilitation as certified by the commission and said person, firm, partnership, trust, estate, limited

liability company, corporation or other business entity is not a social club as defined in § 44-33.6-

2, shall be entitled to a credit against the taxes imposed on such person or entity pursuant to chapter

11, 12, 13, 14, 17, or 30 of this title in an amount equal to the following:

(1) Twenty percent (20%) of the qualified rehabilitation expenditures; or

(2) Twenty-five percent (25%) of the qualified rehabilitation expenditures provided that

either:

(i) At least twenty-five percent (25%) of the total rentable area of the certified historic

structure will be made available for a trade or business; or

(ii) The entire rentable area located on the first floor of the certified historic structure will

be made available for a trade or business.

(b) Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in

which such certified historic structure or an identifiable portion of the structure is placed in service

provided that the substantial rehabilitation test is met for such year.

five million dollars ($5,000,000) for any certified rehabilitation project under this chapter. No

building to be completed in phases or in multiple projects shall exceed the maximum project credit

of five million dollars ($5,000,000) for all phases or projects involved in the rehabilitation of such

building.

(d) Maximum aggregate credits. The aggregate credits authorized to be reserved pursuant

to this chapter shall not exceed sums estimated to be available in the historic preservation tax credit

trust fund pursuant to this chapter.

(e) Subject to the exception provided in subsection (g) of this section, if the amount of the

tax credit exceeds the taxpayer’s total tax liability for the year in which the substantially

rehabilitated property is placed in service, the amount that exceeds the taxpayer’s tax liability may

be carried forward for credit against the taxes imposed for the succeeding ten (10) years, or until

the full credit is used, whichever occurs first for the tax credits. Credits allowed to a partnership, a

limited liability company taxed as a partnership, or multiple owners of property shall be passed

through to the persons designated as partners, members, or owners respectively pro rata or pursuant

to an executed agreement among such persons designated as partners, members, or owners

documenting an alternate distribution method without regard to their sharing of other tax or

economic attributes of such entity. Credits may be allocated to partners, members, or owners that

are exempt from taxation under section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S.

Code and these partners, members, or owners must be treated as taxpayers for purposes of this

section.

(f) If the taxpayer has not claimed the tax credits in whole or part, taxpayers eligible for

the tax credits may assign, transfer, or convey the credits, in whole or in part, by sale or otherwise

to any individual or entity, including, but not limited to, condominium owners in the event the

certified historic structure is converted into condominiums and assignees of the credits that have

not claimed the tax credits in whole or part may assign, transfer, or convey the credits, in whole or

in part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use

acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed

pursuant to chapter 11, 12, 13 (other than the tax imposed under § 44-13-13), 14, 17, or 30 of this

title. The assignee may apply the tax credit against taxes imposed on the assignee until the end of

the tenth calendar year after the year in which the substantially rehabilitated property is placed in

service or until the full credit assigned is used, whichever occurs first. Fiscal year assignees may

claim the credit until the expiration of the fiscal year that ends within the tenth year after the year

in which the substantially rehabilitated property is placed in service. The assignor shall perfect the

transfer by notifying the state of Rhode Island division of taxation, in writing, within thirty (30)

calendar days following the effective date of the transfer and shall provide any information as may

be required by the division of taxation to administer and carry out the provisions of this section.

For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for

its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this

title. If a tax credit is subsequently recaptured under this chapter, revoked, or adjusted, the seller’s

tax calculation for the year of revocation, recapture, or adjustment shall be increased by the total

amount of the sales proceeds, without proration, as a modification under chapter 30 of this title. In

the event that the seller is not a natural person, the seller’s tax calculation under chapter 11, 12, 13

(other than with respect to the tax imposed under § 44-13-13), 14, 17, or 30 of this title, as

applicable, for the year of revocation, recapture, or adjustment, shall be increased by including the

total amount of the sales proceeds without proration.

(g) Credits allowed to partners, members, or owners that are exempt from taxation under

section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S. Code, and only said credits, shall

be fully refundable.

(h) Substantial rehabilitation of property that either:

(1) Is exempt from real property tax;

(2) Is a social club; or

(3) Consists of a single-family home or a property that contains less than three (3)

residential apartments or condominiums shall be ineligible for the tax credits authorized under this

chapter; provided, however, a scattered site development with five (5) or more residential units in

the aggregate (which may include single-family homes) shall be eligible for tax credit. In the event

a certified historic structure undergoes a substantial rehabilitation pursuant to this chapter and

within twenty-four (24) months after issuance of a certificate of completed work the property

becomes exempt from real property tax, the taxpayer’s tax for the year shall be increased by the

total amount of credit actually used against the tax.

(i) In the case of a corporation, this credit is only allowed against the tax of a corporation

included in a consolidated return that qualifies for the credit and not against the tax of other

corporations that may join in the filing of a consolidated tax return.

(j) For construction projects awarded a tax credit agreement on or after July 1, 2025, and

involving a budget of direct hard construction costs (as defined in § 44-33.6-2) in excess of ten

million dollars ($10,000,000) twenty-five million dollars ($25,000,000), all construction workers

shall be paid in accordance with the wages and benefits required pursuant to chapter 13 of title 37

and all contractors and subcontractors shall file certified payrolls on a monthly basis for all work

completed in the preceding month on a uniform form prescribed by the director of labor and

training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a

material violation and a material breach of the agreement with the state. The tax administrator, in

consultation with the director of labor and training, shall promulgate such rules and regulations as

are necessary to implement the enforcement of this subsection.

(k) No tax credits shall be awarded under this chapter unless the division of taxation

receives confirmation from the department of labor and training that there has been compliance

with the prevailing wage requirements set forth in subsection (j) of this section.

SECTION 16. 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,

2025 2026.

SECTION 17. All sections of this article shall take effect upon passage, except Section 1

and Section 2, which shall take effect on January 1, 2026.