2026 -- H 7311

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LC004279

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION

     Introduced By: Representatives Nardone, Quattrocchi, Fascia, Santucci, Paplauskas, and
Chippendale

     Date Introduced: January 23, 2026

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-64-6 of the General Laws in Chapter 42-64 entitled "Rhode Island

Commerce Corporation" is hereby amended to read as follows:

     42-64-6. General powers.

     (a) Except to the extent inconsistent with any specific provision of this chapter, the Rhode

Island commerce corporation shall have the power:

     (1) To sue and be sued, complain and defend, in its corporate name.

     (2) To have a seal, which may be altered at pleasure and to use the seal by causing it, or a

facsimile of the seal, to be impressed or affixed, or in any other manner reproduced.

     (3) To purchase, take, receive, lease, or otherwise acquire, own, hold, improve, use, and

otherwise deal in and with, real or personal property, or any interest in real or personal property,

wherever situated.

     (4) To sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of

all or any part of its property and assets for any consideration and upon any terms and conditions

as the corporation shall determine.

     (5) To make contracts and guarantees and incur liabilities, borrow money at any rates of

interest as the corporation may determine.

     (6) To make and execute agreements of lease, conditional sales contracts, installment sales

contracts, loan agreements, mortgages, construction contracts, operation contracts, and other

contracts and instruments necessary or convenient in the exercise of the powers and functions of

the corporation granted by this chapter.

     (7) To lend money for its purposes, invest and reinvest its funds, and at its option to take

and hold real and personal property as security for the payment of funds so loaned or invested.

     (8) To acquire or contract to acquire, from any person, firm, corporation, municipality, the

federal government, or the state, or any agency of either the federal government or the state, by

grant, purchase, lease, gift, condemnation, or otherwise, or to obtain options for the acquisition of

any property, real or personal, improved or unimproved, and interests in land less than the fee

thereof; and to own, hold, clear, improve, develop, and rehabilitate, and to sell, assign, exchange,

transfer, convey, lease, mortgage, or otherwise dispose or encumber that property for the purposes

of carrying out the provisions and intent of this chapter, for any consideration as the corporation

shall determine.

     (9) To conduct its activities, carry on its operations, and have offices and exercise the

powers granted by this chapter, within or outside of the state.

     (10) To elect or appoint officers and agents of the corporation, and define their duties and

fix their compensation.

     (11) To make and alter bylaws, not inconsistent with this chapter, for the administration

and regulation of the affairs of the corporation, and those bylaws may contain provisions

indemnifying any person who is or was a director, officer, employee, or agent of the corporation,

or is or was serving at the request of the corporation as a director, officer, employee, or agent of

another corporation, partnership, joint venture, trust, or other enterprise, in the manner and to the

extent provided in § 7-1.2-814 of the business corporation act.

     (12) To be a promoter, partner, member, associate, or manager of any partnership,

enterprise, or venture.

     (13) To have and exercise all powers necessary or convenient to effect its purposes;

provided, however, that the corporation shall not have any power to create, empower or otherwise

establish any corporation, subsidiary corporation, corporate body, any form of partnership, or any

other separate entity without the express approval and authorization of the general assembly.

     (b) Express approval and authorization of the general assembly shall be deemed to have

been given for all legal purposes on July 1, 1995, for the creation and lawful management of a

subsidiary corporation created for the management of the Quonset Point/Davisville Industrial Park,

that subsidiary corporation being managed by a board of directors, the members of which shall be

constituted as follows: (1) two (2) members who shall be appointed by the town council of the town

of North Kingstown; (2) two (2) members who shall be residents of the town of North Kingstown

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appointed by the governor; (3) four (4) members who shall be appointed by the governor; (4) the

chairperson, who shall be: (i) the executive director of the Rhode Island economic development

corporation until such time that the secretary of commerce is appointed; (ii) Upon the appointment

of a secretary of commerce, the chief executive officer of the Rhode Island commerce corporation,

and who also shall be the secretary of the Rhode Island executive office of commerce; and (5) non-

voting members who shall be the members of the general assembly whose districts are comprised

in any part by areas located within the town of North Kingstown.

     The approval and authorization provided herein shall terminate upon the establishment of

the Quonset Development Corporation as provided for in chapter 64.10 of this title.

     (c) The authority of the Rhode Island commerce corporation to finance any transaction, as

provided herein, shall be limited to five million dollars ($5,000,000) for any one individual,

business entity or project as defined in § 42-64-3, unless additional funding is authorized by the

general assembly.

     SECTION 2. Section 42-64-7 of the General Laws in Chapter 42-64 entitled "Rhode Island

Commerce Corporation" is hereby amended to read as follows:

     42-64-7. Additional general powers.

     In addition to the powers enumerated in § 42-64-6, except to the extent inconsistent with

any specific provision of this chapter, the Rhode Island commerce corporation shall have power:

     (1) To undertake the planning, development, construction, financing, management,

operation of any project, and all activities in relation thereto.

     (2)(i) To sell, mortgage, lease, exchange, transfer, or otherwise dispose of or encumber any

port project, (or in the case of a sale, to accept a purchase money mortgage in connection with any

port project) or to grant options for any purposes with respect to any real or personal property or

interest in real or personal property, all of the foregoing for consideration as the corporation shall

determine. Any lease by the corporation to another party may be for any part of the corporation’s

property, real or personal, for any period, upon any terms or conditions, with or without an option

on the part of the lessee to purchase any or all of the leased property for any consideration, at or

after the retirement of all indebtedness incurred by the corporation on account thereof, as the

corporation shall determine.

     (ii) Without limiting the generality of the foregoing, the corporation is expressly

empowered to lease or sell any part of the real or personal property owned or controlled by the

corporation to the state, or any department of the state or to any municipality. The provisions of

this section or of any other laws of this state (other than this chapter) restricting the power of the

state, its departments or any municipality, to lease or sell property, or requiring or prescribing

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publication of notice of intention to lease or sell, advertising for bids, the terms of contracts of lease

or sale, that would in any manner interfere with the purpose of this section, which is to provide for

the mutual cooperation by and between the corporation and the state, its departments or any

municipality, to the fullest extent possible, are not applicable to leases and sales made pursuant to

this section.

     (3) To prepare or cause to be prepared plans, specifications, designs, and estimates of costs

for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project,

and from time to time to modify those plans, specifications, designs, or estimates.

     (4) To manage any project, whether then owned or leased by the corporation, and to enter

into agreements with the state or any municipality or any agency or their instrumentalities, or with

any person, firm, partnership, or corporation, either public or private, for the purpose of causing

any project to be managed.

     (5) To provide advisory, consultative, training, and educational services, technical

assistance, and advice to any person, firm, partnership, or corporation, whether it is public or

private, in order to carry out the purposes of this chapter.

     (6) Subject to the provisions of any contract with note holders or bond holders to consent

to the modification, with respect to rate of interest, time of payments of any installment of principal

or interest, security or any other term of any mortgage, mortgage loan, mortgage loan commitment,

contract, or agreement of any kind to which the corporation is a party.

     (7) In connection with any property on which it has made a mortgage loan, to foreclose on

that property or commence an action to protect or enforce any right conferred upon it by law,

mortgage, contract, or other agreement and to bid for and purchase the property at any foreclosure

or any other sale, or to acquire or take possession of the property; and in that event the corporation

may complete, administer, pay the principal of, or interest on any obligations incurred in connection

with the property, dispose of, and otherwise deal with the property in a manner as may be necessary

or desirable to protect the interest of the corporation therein.

     (8) As security for the payment of principal and interest on any bonds or notes or any

agreements made in connection therewith, to mortgage and pledge any or all of its projects and

property, whether then owned or thereafter acquired, and to pledge the revenues and receipts from

all or part thereof, and to assign or pledge the leases, sales contracts, or loan agreements, or other

agreements on any portion or all of its projects and property and to assign or pledge the income

received by virtue of the lease, sales contracts, loan agreements, or other agreements.

     (9) To invest any funds of the corporation, including funds held in reserve or sinking funds,

or any moneys not required for immediate use or disbursement at the discretion of the corporation,

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in: (i) obligations of the state or the United States, (ii) obligations of the principal and interest of

which are guaranteed by the state or the United States, (iii) obligations of agencies and

instrumentalities of the state or the United States, (iv) certificates of deposits of banks and trust

companies or shares of building loan associations organized under the laws of the state or doing

business in the state, or (v) any obligations, securities, and other investments as shall be specified

in resolutions of the corporation.

     (10) To engage the services of consultants on a contract basis for rendering professional

and technical assistance and advice, and to employ architects, engineers, attorneys, accountants,

construction, and financial experts and any other advisors, consultants, and agents as may be

necessary in his or her judgment, and to fix their compensation.

     (11) To contract for and to accept any gifts or grants or loans or funds or property or

financial or other assistance in any form from the United States or any agency or instrumentality

of the United States or from the state or any agency or instrumentality of the state or from any other

source and to comply, subject to the provisions of this chapter, with the terms and conditions of

this contract.

     (12) To enter into agreements with any municipality or political subdivision, either directly

or on behalf of any other party which holds legal title to all or any portion of a project as the lessee

from the corporation designated pursuant to § 42-64-20(c), providing that the corporation or the

lessee shall pay annual sums in lieu of taxes to the municipality or political subdivision of the state

in respect to any real or personal property which is owned by the corporation or the lessee and is

located in the municipality or political subdivision.

     (13) To borrow money and to issue negotiable bonds and notes, and to provide for the

rights of the holders of these bonds and notes, for the purpose of providing funds to pay all or any

part of the cost of any port project or for the purpose of refunding any of these bonds issued.

     (14) To construct, acquire, own, repair, develop, operate, maintain, extend, and improve,

rehabilitate, renovate, furnish, and equip one or more port projects and to pay all or any part of the

costs of these bonds and notes from the proceeds of bonds of the corporation or from any

contribution, gift, or donation or other funds made available to the corporation for those purposes.

     (15) To fix, charge and collect rents, fees, tolls, and charges for the use of any port project

and to alter and investigate rates, and practices of charging, which affect port projects so as to

increase commerce in the state.

     (16) To prescribe rules and regulations deemed necessary or desirable to carry out the

purposes of this chapter including rules and regulations to insure maximum use and proper

operation of port projects.

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     (17) To establish penalties for violations of any order, rule, or regulation of the corporation,

and a method of enforcing these penalties.

     (18) To develop, maintain, and operate foreign trade zones under those terms and

conditions that may be prescribed by law.

     (19) To impose administrative penalties in accordance with the provisions of § 42-64-9.2.

     (20) To make assessments and impose reasonable and just user charges, and to pay for

those expenses that may be required by law or as may be determined by the corporation to be

necessary for the maintenance and operation of the sewage treatment facility.

     (21) To establish a sewage pretreatment program, and to require as a condition to the grant

or re-issuance of any approval, license, or permit required under the program that the person

applying for the approval, license or permit, pay to the corporation a reasonable fee based on the

cost of reviewing and acting upon the application and based on the costs of implementing the

program. In addition, where a violation of any of the provisions of this title or any permit, rule,

regulation, or order issued pursuant to this title have occurred, the violator shall reimburse the

corporation for the actual costs of implementing and enforcing the terms of the permit, rule,

regulation or order as a condition to the grant or re-issuance of any approval.

     (22) To assist urban communities revitalize their local economics.

     (23) To provide assistance to minority businesses and to neighborhoods where there is

insufficient economic and business investment.

     (24) To support and assist entrepreneurial activity by minorities and by low and moderate

income persons.

     (25) To issue bonds and notes of the type and for those projects and for those purposes

specified in any Joint Resolution of the General Assembly adopted by the Rhode Island house of

representatives and the Rhode Island senate; pursuant to chapter 18 of title 35 of the general laws

entitled the “Rhode Island Public Corporation Debt Management Act”; and to make such

determinations, enter into such agreements, to deliver such instruments and to take such other

actions as it shall deem necessary or desirable to effectuate the financing of such projects.

     (c) The authority of the Rhode Island commerce corporation to finance any transaction, as

provided herein, shall be limited to five million dollars ($5,000,000) for any one individual,

business entity or project as defined in § 42-64-3, unless additional funding is authorized by the

general assembly.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION

***

     This act would limit the authority of the Rhode Island commerce corporation to finance

any transaction to five million dollars ($5,000,000) for any one individual, business entity or

project.

     This act would take effect upon passage.

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