2013 -- H 6064

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LC02467

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE MANUFACTURING

INDUSTRY REVITALIZATION ACT

     Introduced By: Representatives Melo, Blazejewski, Baldelli-Hunt, Winfield, and Abney

     Date Introduced: May 01, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Purpose. -- The general assembly hereby finds that:

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     (1) The manufacturing industry is a vital sector of the Rhode Island economy and it is in

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the best interests of the state to encourage expansion of such sector by participating in certain

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significant capital infrastructure investments made by Rhode Island's manufacturing industry

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companies that result in substantial new employment opportunities;

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     SECTION 2. Title 42 of the General Laws entitled "STATE AFFAIRS AND

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GOVERNMENT" is hereby amended by adding thereto the following chapter:

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     CHAPTER 64.15

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THE MANUFACTURING INDUSTRY REVITALIZATION ACT

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     42-64.15-1. Short title. -- This chapter may be known and may be cited as the "Rhode

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Island Manufacturing Industry Revitalization Act" (MIRA).

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     42-64.15-2. Definitions. -- For the purposes of this chapter, the following terms shall

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have the following meanings:

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     (1) "Approved manufacturing industry participant" (approved MIRP) means a Rhode

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Island corporation qualified to do business in the state, or a subsidiary, affiliate or successor

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thereof that is a manufacturing industry company which can satisfy the commitments of

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subsection 42-64.15-4(a)

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     (2) "Calendar year" means the twelve (12) month period commencing on January 1 and

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ending on the following December 31.

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     (3) "Capital expenditure" means a capital infrastructure investment, or a series of related

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investments, by a manufacturing company in its Rhode Island infrastructure, including, but not

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limited to, real property, buildings and equipment, in an aggregate amount equal to or greater than

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ten million dollars ($10,000,000).

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     (4) "Manufacturing industry" means research, development, production and repair and

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servicing of materials, equipment, including, software, and facilities, or components thereof,

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directly or indirectly, including, but not limited to, those to be used by the residents of Rhode

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Island.

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     (5) "Manufacturing industry company" means any corporation, partnership, joint venture,

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limited liability company or other legal entity, or any subsidiary or affiliate thereof, that is

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qualified to do business in the state and whose primary business is derived from or related to the

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manufacturing industry or any subcontractor of such manufacturing industry company, the

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employees of which perform their services in Rhode Island in such manufacturing industry

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company's premises and who, if employed by such manufacturing industry company, would

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qualify based on the number of hours and length of service at such manufacturing industry

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company facility as a full-time equivalent active employee.

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     (6) "Manufacturing industry revitalization program" or (MIR program) means that

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program authorized in section 42-64.15-4 hereof.

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     (7) "MIR participant" means a manufacturing industry company that has applied to, and

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has been approved by, the Rhode Island Commerce Corporation (RICC) board for participation in

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the MIR program.

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     (8) "Effective date" means the date on which a reimbursement agreement becomes

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effective subject to its terms and the terms of this chapter.

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     (9) "Full-time equivalent active employee" means as to any calendar year an employee of

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manufacturing industry company who:

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     (10) (i) Works within the state a minimum of thirty (30) hours per week, exclusive of

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paid time off for vacation, sick, personal or qualified family medical leave, or two (2) or more

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part-time employees whose combined weekly hours equal or exceed thirty (30) hours per week

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within the state; (ii) Earns no less than two hundred percent (200%) of the hourly minimum wage

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prescribed by Rhode Island law; and (iii) Was employed for not less than six (6) months during

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such calendar year.

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     (11) "New employee(s)" means for each calendar year the positive difference, if any,

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between:

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     (i) Number of full-time equivalent active employees for such calendar year; and

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     (ii) The stabilized employment; provided, however that no MIR participant shall be

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permitted to transfer, assign or hire employees who are already employed within the state by such

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MIR participant from itself or any affiliated entity, or utilize any other artifice or device for the

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purpose of artificially creating new employees in order to qualify for MIR program benefits.

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     (12) "Jobs creation reimbursement" means an annual credit to an MIR participant of five

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hundred dollars ($500) per new employee.

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     (13) "Reimbursement agreement" means a manufacturing industry revitalization

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reimbursement agreement entered into by and between an MIR participant and the RICC board as

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authorized in section 42-64.15-5 and 42-64.15-6.

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     (14) "Reimbursement cap" means twenty-five percent (25%) of the capital expenditure

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cost.

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     (15) "Stabilized employment" means the average aggregate number of full-time

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equivalent active employed within the state by the MIR participant during the three (3) calendar

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years immediately prior to the effective date.

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     (16) "State" means the state of Rhode Island and Providence Plantations, and any

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department, office, board commission or agency thereof.

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     (17) "Term" means the term of the reimbursement agreement, which shall not exceed five

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(5) years, provided that the MIR participant shall have two (2) five (5) year extension options,

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which shall be considered part of the term, subject to the following:

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     (i) Such MIR participant not being in default under any material covenant, term or

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condition of the reimbursement agreement that has not been cured within the applicable cure

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period set forth in such reimbursement agreement; and

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     (ii) The MIR participant employing not less than one hundred (100) full-time equivalent

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active employees in the state.

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     42-64.15-4. Manufacturing industry revitalization program -- Application --

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Approval. -- (a) A manufacturing industry company may apply to the RICC board for

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participation in the MIR program provided that such manufacturing industry company shall agree

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to:

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     (1) Make a capital expenditure or a series of related capital expenditures, of which a

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minimum of ten million dollars ($10,000,000) shall be made within two (2) years following the

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effective date and the balance to be undertaken within a ten (10) years period following the

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effective date as such period may be extended for good cause by the RICC board under its rules

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and regulations;

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     (2) Employ at least one hundred (100) full-time equivalent active employees in excess of

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its stabilized employment in each calendar year in order to qualify for job creation reimbursement

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for each year;

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     (3) Cooperate in the development of a workforce training program as required by section

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42-64.15-7 hereof; and

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     (4) Such other terms and conditions as required by this chapter and as the RICC board

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shall reasonably require.

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     (b) The RICC board may authorize and contract for jobs creation reimbursements with

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manufacturing industry companies that satisfy the requirements of this section.

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     (c) The application for the MIR program shall contain such additional information as the

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MIR board may require in is sole discretion from time to time.

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     (d) The RICC board may approve or reject an application for the MIR program, subject to

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the requirements of this chapter and its own rules and regulations. If approval is granted the RICC

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board shall certify such approval to the governor and the chairs of the house finance and senate

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finance committees within thirty (30) days thereof.

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     (e) Each MIR participant shall certify annually the RICC board on or before April 30 of

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each year:

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     (1) The amount of actual capital expenditures made during the preceding calendar year;

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and

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     (2) The average number of full-time equivalent active employees employed by such MIR

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participant during the preceding calendar year.

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     (f) Each MIR participant shall make available to the RICC board its books and records

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relative to capital expenditures and the number of its full-time equivalent active employees.

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     42-64.15-5. Authorized procurement of reimbursement agreement. -- (a)

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Notwithstanding any provision of the general or public laws to the contrary, with ninety (90) days

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of the approval by the RICC board, the RICC board and MIR participant shall enter into a

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reimbursement agreement setting forth each party's obligations with respect to the MIR program,

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including, without limitation, the MIR participant's commitments in accordance with subsection

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42-64.15-4(a) and the following:

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     (1) The state shall make jobs creation reimbursement payments not to exceed the

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reimbursement cap. Such payments shall commence on July 1 of the calendar year immediately

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following the calendar year during which an approved portion of the capital expenditure has been

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completed and the conditions of subsection 41-64.15-4(a) have been satisfied.

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     (2) The MIR participant shall agree to cooperate in the creation of a workforce training

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program in accordance with section 42-64.15-7 hereof.

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     42-64.15-6. Authorized procurement of manufacturing reimbursement agreement. --

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(a) Notwithstanding any provision of the general or public laws to the contrary, within

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ninety (90) days of the effective date of this at, the RICC board is hereby authorized and directed

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to enter into a reimbursement agreement with the approved MIRP setting forth each party's

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obligations with respect to the MIR program, including, without limitation, the following:

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     (1) The approved MIRP shall agree to make capital expenditures to be undertaken with a

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three (3) year period following the effective date and to hire at least an additional fifty (50) full-

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time equivalent active employees in excess of its stabilized employment.

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     (2) The state shall make jobs creation reimbursement payments not to exceed the

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reimbursement cap, as such cap may be adjusted from time to time to reflect the completion of

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each approved phase of capital expenditure. Such payments shall commence on July 1 of the

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calendar year following the calendar year during which the first phase of such capital expenditure

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has been completed and the approved MIRP has employed fifty (50) full-time equivalent active

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employees in excess of its stabilized employment and continues to meet such requirement

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throughout the balance of the term of the reimbursement agreement. Such payments shall be

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made by July 31 of each year.

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     (3) The approved MIRP shall agree to cooperate in the development of a workforce

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training program as required by section 42-64.15-7 hereof.

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     42-64.15-7. Workforce training. -- The MIR participant shall cooperate in the

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development of a workforce training program in collaboration with the board of education, the

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department of labor and training, the Rhode Island commerce corporation, the Rhode Island

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manufacturing association, the Community College of Rhode Island, the University of Rhode

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Island and Rhode Island College.

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     42-64.15-8. Audit and review. -- (a) The department of labor and training and the

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department of revenue shall be jointly responsible to conduct an audit of the capital expenditures

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for purposes of ascertaining the reimbursement cap and an annual audit of the number of full-time

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equivalent active employees employed by any MIR participant. The results of these audits shall

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be certified to the RICC board, the office of management and budget of the department of

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administration, the governor and the general assembly.

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     (b) The department of revenue shall make an annual report to the governor and the

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general assembly with respect to the MIR program, including, but not limited to, the amounts of

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any satisfied capital expenditures, the number of new employees, the value of any jobs creation

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reimbursements, the status of workforce training programs and the status of MIR participants.

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These reports shall be submitted on or before January 31st of each year, beginning in the year

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immediately following the effective date, and shall be made available to the public.

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     SECTION 3. This act shall take effect upon passage.

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LC02467

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE MANUFACTURING

INDUSTRY REVITALIZATION ACT

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     This act would create the Manufacturing Industry Revitalization Act designed to promote

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capital infrastructure investments in the manufacturing industry.

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     This act would take effect upon passage.

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LC02467

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