2024 -- S 2214 | |
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LC004192 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO BUSINESSES AND PROFESSIONS -- FACILITATING BUSINESS RAPID | |
RESPONSE TO STATE DECLARED DISASTER ACT OF 2024 | |
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Introduced By: Senators McKenney, Sosnowski, Picard, Gallo, and LaMountain | |
Date Introduced: January 24, 2024 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS" |
2 | is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 93 |
4 | FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTER ACT |
5 | OF 2024 |
6 | 5-93-1. Short title. |
7 | This chapter shall be known and may be cited as the “Facilitating Business Rapid Response |
8 | to State Declared Disaster Act of 2024.” |
9 | 5-93-2. Legislative findings. |
10 | The general assembly hereby makes the following findings: |
11 | (1) During times of storm, flood, fire, earthquake, hurricane or other disaster or emergency, |
12 | many businesses bring in resources and personnel from other states throughout the United States, |
13 | on a temporary basis, to expedite the often enormous and overwhelming task of cleaning up, |
14 | restoring and repairing damaged buildings, equipment and property or even deploying or building |
15 | replacement facilities in the state; |
16 | (2) This action may involve the need for out-of-state businesses, including out-of-state |
17 | affiliates of businesses based in the state, to bring in resources, property and/or personnel that |
18 | previously have had no connection to the state, to perform services in the state including, but not |
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1 | limited to, repairing, renovating, installing, building, rendering services or other business activities |
2 | and for which personnel may be located in the state for extended periods of time to perform such |
3 | services; |
4 | (3) During such time of operating in the state on a temporary basis solely for purposes of |
5 | helping the state recover from the disaster or emergency, these businesses and individual employees |
6 | should not be burdened by any requirements for business and employee taxes as a result of such |
7 | activities in the state for a temporary period; |
8 | (4) The state’s nexus and residency thresholds are intended for businesses and individuals |
9 | in the state as part of the conduct of regular business operations or who intend to reside in the state |
10 | and should not be directed at businesses and individuals coming into the state on a temporary basis |
11 | to provide assistance in response to a declared state disaster or emergency; and |
12 | (5) To ensure that businesses may focus on quick response to the needs of the state and its |
13 | citizens during a declared state disaster or emergency, it is appropriate for the general assembly to |
14 | deem that such activity, for a reasonable period of time before, during and after the disaster or |
15 | emergency for repairing and restoration of the often devastating damage to critical infrastructure |
16 | shall not establish presence, residency, nor doing business in the state nor any other criteria for |
17 | purposes of state and local taxes, and specified licensing and regulatory requirements. |
18 | 5-93-3. Definitions. |
19 | As used in this chapter, the following terms shall have the following meanings: |
20 | (1) “'Critical infrastructure” means property and equipment located in this state that is |
21 | owned or used by communications networks, cable, video, or broadband networks; gas and electric |
22 | distribution systems and water pipelines, railways, public roads and bridges and related support |
23 | facilities that service multiple customers or citizens including, but not limited to, real and personal |
24 | property such as buildings, offices, lines, poles, pipes, structures and equipment. |
25 | (2) “Declared state disaster or emergency” means a disaster or emergency event for which |
26 | a governor’s state of emergency proclamation has been issued or for which a presidential |
27 | declaration of a federal major disaster or emergency has been issued. |
28 | (3) “Disaster or emergency-related work” means repairing, renovating, installing, building, |
29 | rendering services or other business activities that relate to critical infrastructure that has been |
30 | damaged, destroyed or lost as a result of the declared state disaster or emergency during the disaster |
31 | period. |
32 | (4) “Disaster period” means a period that begins within ten (10) days of the first day of the |
33 | governor’s proclamation or the president’s declaration (whichever occurs first) and that extends for |
34 | a period of sixty (60) calendar days after the end of the declared disaster or emergency period. |
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1 | (5) “Out-of-state business” means a business entity that, except for disaster or emergency- |
2 | related work, has no presence in the state and conducts no business in the state whose services are |
3 | requested by a registered business or by a state or local government for purposes of performing |
4 | disaster or emergency-related work in the state. This definition shall also include a business entity |
5 | that is affiliated with the registered business in the state solely through common ownership. The |
6 | “out-of-state business” has no registrations or tax filings or nexus in the state prior to the declared |
7 | state disaster or emergency, other than disaster or emergency-related work during the tax year |
8 | immediately preceding the declared state disaster or emergency. |
9 | (6) “Out-of-state employee” means an employee who does not work in the state, except for |
10 | disaster or emergency-related work during the disaster response period. |
11 | (7) “Registered business in the state” or “registered business” means a business entity that |
12 | is currently registered to do business in the state prior to the declared state disaster or emergency. |
13 | 5-93-4. Obligations, rights and duties. |
14 | (a) An out-of-state business that conducts operations within the state for purposes of |
15 | performing work or services on critical infrastructure damaged, destroyed, or lost as a result of a |
16 | declared state disaster or emergency during the disaster period shall not be considered to have |
17 | established a level of presence that would require that business to register, file and remit state or |
18 | local taxes or that would require that business or its out-of-state employees to be subject to the state |
19 | telecommunications technician, contractor or installer licensing requirements as long as they are |
20 | under the supervision of the registered business. This exemption includes any state or local |
21 | telecommunications business licensing or registration requirements or state and local taxes or fees |
22 | such as unemployment insurance, state or local occupational telecommunications technician |
23 | licensing fees and use tax on equipment brought into the state on a temporary basis that is used |
24 | during the disaster period as well as public service commission or secretary of state licensing and |
25 | regulatory requirements. For purposes of any state or local tax on or measured by, in whole or in |
26 | part, net or gross income or receipts, all activity of the out-of-state business that is conducted in |
27 | this state, pursuant to this chapter shall be disregarded with respect to any filing requirements for |
28 | such tax, including the filing required for a unitary or combined group of which the out-of-state |
29 | business may be a part. For purposes of apportioning income, revenue, or receipts, the performance |
30 | by an out-of-state business of any work pursuant to this chapter, shall not be sourced to or shall not |
31 | otherwise impact or increase the amount of income, revenue, or receipts apportioned to this state. |
32 | (b) Any out-of-state employee shall not be considered to have established residency or a |
33 | presence in the state that would require that person or that person’s employer to file and pay income |
34 | taxes or to be subjected to income tax withholdings or to file and pay any other state or local tax or |
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1 | fee during the disaster period. This exemption includes any related state or local employer |
2 | withholding and remittance obligations. |
3 | (c) Out-of-state businesses and out-of-state employees shall be required to pay transaction |
4 | taxes and fees including, but not limited to, fuel taxes or sales and use taxes, except use tax on |
5 | equipment specified in subsection (a) of this section, hotel taxes, car rental taxes or fees unless such |
6 | taxes or fees are otherwise exempted during a disaster period. |
7 | (d) Any out-of- state business or out-of-state employee that remains in the state after the |
8 | disaster period will become subject to the state’s normal standards for establishing presence, |
9 | residency or doing business in the state and will therefore become responsible for any business or |
10 | employee tax requirements that ensue. |
11 | 5-93-5. Administration. |
12 | (a) Notification of out-of-state business during disaster period. |
13 | (1) The out-of-state business that enters the state shall, upon request, provide to the Rhode |
14 | Island emergency management agency a statement that it is in the state for purposes of responding |
15 | to the disaster or emergency, which statement shall include the business name, state of domicile, |
16 | principal business address, federal tax identification number, date of entry, and contact information. |
17 | (2) A registered business in the state shall, upon request, provide the information required |
18 | in subsection (a)(1) of this section for any affiliate that enters the state. The notification shall also |
19 | include contact information for the registered business in the state. |
20 | (b) Notification of intent to remain in state. An out-of-state business or an employee that |
21 | remains in the state after the disaster period shall complete state and local registration, licensing |
22 | and filing requirements that ensue as a result of establishing the requisite business presence or |
23 | residency in the state applicable under the existing rules. |
24 | (c) Procedures. The emergency management agency shall promulgate necessary rules and |
25 | regulations as well as develop and issue forms or online processes to implement these |
26 | administrative procedures. |
27 | SECTION 2. This act shall take effect upon passage. |
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LC004192 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO BUSINESSES AND PROFESSIONS -- FACILITATING BUSINESS RAPID | |
RESPONSE TO STATE DECLARED DISASTER ACT OF 2024 | |
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1 | This act would exempt out-of-state businesses and their employees performing services, |
2 | during declared state or federal disasters or emergencies, from state or local business requirements, |
3 | as well as state or local taxes or fees. |
4 | This act would take effect upon passage. |
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LC004192 | |
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