2020 -- S 2360

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LC003890

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- STAY INVESTED IN RI

WAVEMAKER FELLOWSHIP

     Introduced By: Senators Pearson, Gallo, Seveney, Metts, and Satchell

     Date Introduced: February 13, 2020

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 42-64.26-3, 42-64.26-5, 42-64.26-8 and 42-64.26-12 of the

General Laws in Chapter 42-64.26 entitled "Stay Invested in RI Wavemaker Fellowship" are

hereby amended to read as follows:

     42-64.26-3. Definitions.

     As used in this chapter:

     (1) "Eligible graduate" means an individual who meets the eligibility requirements under

this chapter.

     (2) "Applicant" means an eligible graduate who applies for a tax credit for education loan

repayment expenses under this chapter.

     (3) "Award" means a tax credit awarded by the commerce corporation to an applicant as

provided under this chapter.

     (4) "Business" means any corporation, state bank, federal savings bank, trust company,

national banking association, bank holding company, loan and investment company, mutual

savings bank, credit union, building and loan association, insurance company, investment

company, broker-dealer company or surety company, limited liability company, partnership, sole

proprietorship, or federal agency or subsidiaries thereof.

     (4)(5) "Taxpayer" means an applicant who receives a tax credit under this chapter.

     (5)(6) "Commerce corporation" means the Rhode Island commerce corporation

established pursuant to chapter 64 of title 42.

     (6)(7) "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 post-secondary institution of higher learning.

     (8) "Eligible high-demand STEM teacher" means a full-time content area teacher

employed by a Rhode Island local education agency and satisfying criteria proposed by the Rhode

Island Commissioner of Education in consultation with the commerce corporation and approved

by the commerce corporation, which at a minimum shall include provisions regarding minimum

instructional hours and qualifying high-demand STEM subject areas.

     (7)(9) "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.

     (8)(10) "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 (2) year, four (4) year

or graduate post-secondary 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;,

and be either

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

employer located in this state throughout the eligibility period, whose employment is 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.; or

     (B) A full-time employee that is an eligible high-demand STEM teacher.

     (9)(11) "Full-time employee" means a person who is employed by a business or an

eligible high-demand STEM teacher as defined herein 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 earnings are subject to Rhode Island income tax and whose wages are

subject to withholding.

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     (12) "Local education agency" means a public board of education/school committee or

other public authority legally constituted within the state for either administrative control or

direction of one or more Rhode Island public elementary schools or secondary schools, or a

regional school district, state-operated school, regional collaboration, and charter school or

mayoral academy.

     (10)(13) "Service period" means a twelve (12) month period beginning on the date that an

eligible graduate receives initial notice of award under this chapter.

     (11)(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

post-secondary institution of higher learning.

     (12)(15) "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)(16) "Fund" refers to the "Stay Invested in RI Wavemaker Fellowship Fund"

established pursuant to § 42-64.26-4.

     42-64.26-5. Administration.

     (a) Application. An eligible graduate claiming an award under this chapter shall submit to

the commerce corporation an application in the manner that the commerce corporation shall

prescribe.

     (b) Upon receipt of a proper application from an applicant who meets all of the eligibility

requirements, the commerce corporation shall select applicants on a competitive basis to receive

credits for up to a maximum amount for each service period of one thousand dollars ($1,000) for

an associate's degree holder, four thousand dollars ($4,000) for a bachelor's degree holder, and six

thousand dollars ($6,000) for a graduate or post-graduate degree holder, but not to exceed the

education loan repayment expenses incurred by such taxpayer during each service period

completed, for up to four (4) consecutive service periods provided that the taxpayer continues to

meet the eligibility requirements throughout the eligibility period. The commerce corporation

shall delegate the selection of the applicants that are to receive awards to a one or more

fellowship committees to be convened by the commerce corporation and promulgate the selection

procedures the fellowship committee or committees will use, which procedures shall require that

the committee's consideration of applications be conducted on a name-blind and employer-blind

basis and that the applications and other supporting documents received or reviewed by the

fellowship committee or committees shall be redacted of the applicant's name, street address, and

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other personally-identifying information as well as the applicant's employer's name, street

address, and other employer-identifying information. The commerce corporation shall determine

the composition of the fellowship committee or committees and the selection procedures it will

use in consultation with the state's chambers of commerce or the Rhode Island Department of

Education, as appropriate.

     (c) The credits awarded under this chapter shall not exceed one hundred percent (100%)

of the education loan repayment expenses incurred paid by such taxpayer during each service

period completed for up to four (4) consecutive service periods. Tax credits shall be issued

annually to the taxpayer upon proof that (i) the taxpayer has actually incurred and paid such

education loan repayment expenses; (ii) the taxpayer continues to meet the eligibility

requirements throughout the service period; (iii) The award shall not exceed the original loan

amount plus any capitalized interest less award previously claimed under this section; and (iv)

that the taxpayer claiming an award is current on his or her student loan repayment obligations.

     (d) In consultation with the Rhode Island Department of Education, the commerce

corporation shall set guidelines for the proportion of awards to be made to eligible high-demand

STEM teachers so long as no more than one hundred (100) and no more than twenty-five percent

(25%) of the awards issued in a calendar year are to eligible high-demand STEM teachers.

     (d)(e) The commerce corporation shall not commit to overall awards in excess of the

amount contained in the fund.

     (e)(f) The commerce corporation shall reserve seventy percent (70%) of the awards

issued in a calendar year to applicants who are permanent residents of the state of Rhode Island or

who attended an institution of higher education located in Rhode Island when they incurred the

education loan expenses to be repaid.

     (f)(g) In administering award, the commerce corporation shall:

     (1) Require suitable proof that an applicant meets the eligibility requirements for award

under this chapter;

     (2) Determine the contents of applications and other materials to be submitted in support

of an application for award under this chapter; and

     (3) Collect reports and other information during the eligibility period for each award to

verify that a taxpayer continues to meet the eligibility requirements for an award.

     42-64.26-8. Carry forward and redemption of tax credits.

     (a) If the amount of the tax credit allowed under this chapter exceeds the taxpayer's total

tax liability for the year in which the credit is allowed, the amount of such credit that exceeds the

taxpayer's tax liability may be carried forward and applied against the taxes imposed for the

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

     (b) The tax credit allowed under this chapter may be used as a credit against personal

income taxes imposed under chapter 30 of title 44.

     (c) The division of taxation shall at the request of a taxpayer redeem such credits in

whole or in part for one hundred percent (100%) of the value of the tax credit.

     (d) Any award made amounts paid to a taxpayer for the redemption of tax credits allowed

pursuant to this section shall be exempt from taxation under title 44 of the General Laws.

     42-64.26-12. Sunset.

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

2020 2023.

     SECTION 2. 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 -- STAY INVESTED IN RI

WAVEMAKER FELLOWSHIP

***

     This act would expand the Wavemaker Fellowship Program to include public school

teachers in the high-need fields of science, technology, engineering and mathematics.

     This act would take effect upon passage.

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