2020 -- S 2555

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LC005013

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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 TAXATION—SURETY BOND FOR TAX CREDITS

     Introduced By: Senators Lombardi, Lombardo, Ciccone, Archambault, and Rogers

     Date Introduced: February 25, 2020

     Referred To: Senate Judiciary

     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 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 mechanics’ liens as defined in § 34-

28, et seq., 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 this 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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LC005013

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION—SURETY BOND FOR TAX CREDITS

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     This act would require that any tax credit awarded to any real estate developer or owner

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

must provide a sworn affidavit stating there are no outstanding mechanics’ liens on any property

owned by that individual and must furnish a bond with surety.

     This act would take effect upon passage.

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