2022 -- H 7922

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LC005162

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE

CORPORATION

     Introduced By: Representatives Tobon, and Barros

     Date Introduced: March 07, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 42-64 of the General Laws entitled "Rhode Island Commerce

Corporation" is hereby amended by adding thereto the following section:

     42-64-42. Retailer competitive grants revolving fund.

     (a) There is hereby established a separate fund within the department of the general

treasurer to be known as the retailer competitive grants revolving fund (the "fund"). This fund shall

be administered by the general treasurer in accordance with the same laws and fiscal procedures as

the general funds of the state, and in consultation with the commerce corporation. The fund shall

consist of such sums as the state may from time to appropriate, as well as at least one million dollars

($1,000,000) received from federal COVID-19 response funds ("COVID-19 response funds")

received by the state to assist the state in its public health, community and economic recovery

efforts related to the state of emergency concerning the novel coronavirus disease outbreak declared

by the governor on March 9, 2020. This fund shall also consist of interest earnings, money received

from the federal government, gifts, bequests, donations, or otherwise from any public or private

source.

     (b) The fund shall be used for the purpose of issuing grants through a competitive bid

application process to local retailers based in Rhode Island and who sell goods, services, and

products, primarily from a so-called "on the ground" and "brick-and-mortar" physical location(s)

that is a retail store, in Rhode Island. These grants shall be issued to assist in making local merchants

more economically competitive with out-of-state sellers from neighboring states and out-of-state

online realtors and to help with business lost during the pandemic.

     (c) Pursuant to subsection (a) of this section, the general assembly shall appropriate, out of

any money not already appropriated for the fiscal year commencing July 1, 2022, the sum of one

million dollars ($1,000,000), as the initial sum to start the retailer competitive grants revolving

fund.

     (d) The fund shall be credited with:

     (1) Revenue authorized by the general assembly and specifically designated to be credited

to the fund from federal funds allocated to the state pursuant to federal legislation enacted after

December 4, 2020 and in response to the COVID-19 outbreak or related economic recovery, but

excluding federal grants that are not subject to appropriation and funds related to increased federal

medical assistance percentage rates under section 1905(b) of the Social Security Act 42

U.S.C.1396b; provided that, federal funds made available in the form of newly created

reimbursement programs may be authorized by the general assembly and designated to be credited

to the fund; and

     (2) Amounts credited to the fund shall be subject to appropriation and money remaining in

the fund at the end of a fiscal year shall not revert to the general fund and shall be available for

expenditure in the subsequent fiscal year.

     (e) The secretary of the commerce corporation, in consultation with the general treasurer

and the department of business regulation, shall promulgate rules and regulations for the

administration of this section, which shall include, but not be limited to, the process of applying for

a grant under the fund and the criteria to be used in awarding a grant from the fund.

     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 -- RHODE ISLAND COMMERCE

CORPORATION

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     This act would establish the retailer competitive grants revolving fund to award grants,

through a competitive process, to local "on the ground" businesses. The purpose of the grants would

be to assist in making local merchants more economically competitive with out-of-state sellers from

neighboring states and out-of-state online realtors.

     This act would take effect upon passage.

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