2019 -- H 6253

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LC002897

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION - SURETY BOND REQUIRED FOR TAX CREDITS

     Introduced By: Representatives Vella-Wilkinson, Williams, Morin, Ucci, and Almeida

     Date Introduced: June 25, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 70

SURETY BOND REQUIRED FOR TAX CREDITS

     44-70-1. Surety bond required for tax credits.

     The awarding of any tax credit under this title shall require that any real estate developer

or owner developing a project or development with a value of five million dollars ($5,000,000) or

greater, state by sworn affidavit that there are no outstanding liens on any properties owned by

that developer or owner, and file with the proper authority good and sufficient bond with surety

furnished by any surety company authorized to do business in the state, conditioned upon the

payment for labor performed and material furnished in connection therewith. Waiver of the

bonding requirements of this section is expressly prohibited.

     SECTION 2. This act shall take effect upon passage.

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LC002897

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - SURETY BOND REQUIRED FOR TAX CREDITS

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     This act would require an owner or developer of a project valued at or above five million

dollars ($5,000,000) or more to attest by sworn affidavit that the properties have no outstanding

liens and to file a surety bond conditioned upon payment for labor and materials of the project,

and any waiver of the bond is prohibited.

     This act would take effect upon passage.

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LC002897

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