2023 -- S 0229

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LC001057

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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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, Murray, DiPalma, Gallo, and Cano

     Date Introduced: February 16, 2023

     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 Fellowships" are hereby

amended to read as follows:

     42-64.26-3. Definitions.

     As used in this chapter:

     (1) “Applicant” means an eligible graduate who applies for a tax credit for education loan

repayment expenses under this chapter.

     (2) “Award” means a tax credit awarded by the commerce corporation to an applicant as

provided under this chapter.

     (3) “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, partnership, sole

proprietorship, or federal agency or subsidiaries thereof.

     (3)(4) “Commerce corporation” means the Rhode Island commerce corporation established

pursuant to chapter 64 of this title.

     (5) “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.

     (4)(6) “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.

     (5)(7) “Eligibility requirements” means the following qualifications or criteria required for

an applicant to claim an award under this chapter (i) That that the applicant shall have graduated

from an accredited two-year (2), four-year (4) or graduate postsecondary 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:

     (ii)(i) A That the applicant shall be 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

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

     (6)(8) “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 postsecondary institution of higher learning.

     (7)(9) “Eligible graduate” means an individual who meets the eligibility requirements

under this chapter.

     (8)(10) “Full-time employee” means a person who is employed by a business as a teacher

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 state income tax and whose wages are subject to

withholding.

     (9)(11) “Healthcare applicant” means any applicant who meets the eligibility requirements

and works as a full-time employee as a high-demand healthcare practitioner or mental health

professional, including, but not limited to, clinical social workers and mental health counselors

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licensed by the department of health, and as defined in regulations to be promulgated by the

commerce corporation, in consultation with the executive office of health and human services,

pursuant to chapter 35 of this title.

     (10)(12) “Healthcare fund” refers to the “Healthcare Stay Invested in RI Wavemaker

Fellowship Fund” established pursuant to § 42-64.26-4(b).

     (13) “Local education agency” means a public school board of education/school committee

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

direction of one or more public elementary schools or secondary schools, or a regional school

district, state-operated school, regional collaboration, and charter school or mayoral academy.

     (11)(14) “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.

     (12)(15) “Service period” means a twelve-month (12) period beginning on the date that an

eligible graduate receives initial notice of award under this chapter.

     (13)(16) “STEM/design fund” refers to the “Stay Invested in RI Wavemaker Fellowship

Fund” established pursuant to § 42-64.26-4(a).

     (14)(17) “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

postsecondary institution of higher learning.

     (15)(18) “Taxpayer” means an applicant who receives a tax credit under this chapter.

     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

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committee or 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 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 state department of

education as appropriate. Notwithstanding the foregoing, the commerce corporation shall create

and establish a committee to evaluate any healthcare applicant for an award in the same manner as

prescribed in this subsection. The executive office of health and human services (“EOHHS”) shall

be represented on the committee and provide consultation to the commerce corporation on selection

procedures. Notwithstanding EOHHS’s consultation and representation in the selection of

healthcare applicants, the commerce corporation shall administer all other aspects of a healthcare

applicant’s application, award, and certification.

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

the education loan repayment expenses incurred 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) The taxpayer claiming an award

is current on his or her student loan repayment obligations.

     (d) In consultation with the department of education, and the department of health, the

commerce corporation shall set guidelines for the proportion of awards to be made to eligible

teachers, high-demand STEM teachers and licensed health care professionals.

     (d)(e) The commerce corporation shall not commit to overall STEM/design awards in

excess of the amount contained in the STEM/design fund or to overall healthcare awards in excess

of the amount contained in the healthcare 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.

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     (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

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 issued made pursuant to this chapter after January 1, 2021, 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,

2023 2024.

     SECTION 2. This act shall take effect upon passage and shall sunset on December 31,

2024.

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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

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

teachers, including public school teachers in the high-needs fields of science, technology,

engineering and mathematics, as well as health care professionals license by the department of

health.

     This act would take effect upon passage and would sunset on December 31 2024.

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