2003 -- S 0204 SUBSTITUTE A
A N A C T
RELATING TO LABOR AND LABOR RELATIONS
Introduced By: Senators DaPonte, Connors, Pichardo, Lanzi, and Ciccone
Date Introduced: January 30, 2003
It is enacted by the General Assembly as follows:
SECTION 1. Section 28-12-3 of the General Laws in Chapter 28-12 entitled "Minimum
Wages" is hereby amended to read as follows:
28-12-3. Minimum wages. -- Every employer shall pay to each of his or her employees,
commencing July 1, 1999, at least the minimum wage of five dollars and sixty five cents ($5.65)
per hour. Commencing September 1, 2000, the minimum wage is six dollars and fifteen cents
($6.15) per hour.
Commencing January 1, 2004, the minimum wage is six dollars and seventy-five cents
($6.75) per hour.
SECTION 2. Section 42-64.5-2 of the General Laws in Chapter 42-64.5 entitled "Jobs
Development Act" is hereby amended to read as follows:
42-64.5-2. Definitions. -- As used in this chapter, unless the context clearly indicates
(1) "Adjusted current employment" means, for any taxable year ending on or after July 1,
1995, the aggregate of the average daily number of full-time equivalent active employees
employed within the State by an eligible company and its eligible subsidiaries during each taxable
(2) "Affiliated entity" means any corporation owned or controlled by the same persons or
shareholders who own or control an eligible company.
(3) "Base employment" means the aggregate number of full-time equivalent active
employees employed within the State by an eligible company and its eligible subsidiaries on July
1, 1994, or at the election of the eligible company, on an alternative date as provided by section
42-64.5-5. In the case of a manufacturing company which is ruined by disaster, the aggregate
number of full time equivalent active employees employed at the destroyed facility would be
zero, under which circumstance the base year shall be the calendar year in which the disaster
occurred. Only one base employment period can be elected for purposes of a rate reduction by an
(4) "Disaster" means an occurrence, natural or otherwise, which results in the destruction
of sixty percent (60%) or more of an operating manufacturing business facility in this state,
thereby making the production of products by the eligible company impossible and as a result
active employees of the facility are without employment in that facility. However, disaster does
not include any damage resulting from the willful act of the owner(s) of the manufacturing
(5) "Eligible subsidiary" means each corporation 80% or more of the outstanding
common stock of which is owned by an eligible company.
(6) "Eligible company" 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, manufacturing company, telecommunications company or
surety company or an eligible subsidiary of any of the foregoing. An eligible company does not
have to be qualified to do business in the state or have any employees in this state at the time its
base employment is determined.
(7) "Full time equivalent active employee" means any employee of an eligible company
who: (1) works a minimum of 30 hours per week within the State, or two (2) or more part-time
employees whose combined weekly hours equal or exceed 30 hours per week within the State;
(2) earns no less than 150% of the hourly minimum wage prescribed by Rhode
provided, however, for tax years ending after the later of July 1, 2003 and the first tax year that an
eligible company qualifies for a rate reduction pursuant to section 42-64.5-3, for purposes of this
section, one hundred fifty percent (150%) of the hourly minimum wage prescribed by Rhode
Island law shall mean one hundred fifty percent (150%) of the hourly minimum wage prescribed
by Rhode Island law at (a) the time the employee was first treated as a full-time equivalent active
employee during a tax year that the eligible company qualified for a rate reduction pursuant to
section 42-64.5-3, or, if later, (b) the time the employee first earned at least one hundred fifty
percent (150%) of the hourly minimum wage prescribed by Rhode Island law as an employee of
the eligible company.
(8) (i) "New employment" means for each taxable year the amount of adjusted current
employment for each taxable year minus the amount of base employment, but in no event less
than zero; provided, however, no eligible company is permitted to transfer, assign or hire
employees who are already employed within the State by such eligible company from itself or
any affiliated entity or utilize any other artifice or device for the purpose of artificially creating
new employees in order to qualify for the rate reduction provided for in this chapter.
(ii) "New employment" shall not include employees already employed in this state who
become employees of an eligible company as a result of an acquisition of an existing company by
purchase, merger, or otherwise, if the existing company was eligible for a rate reduction. In the
case of a manufacturing company that suffers a disaster it shall mean any employment retained or
added as the result of reconstruction of the manufacturing facility.
(9) "Rate reduction" means the reduction in tax rate specified in section 42-64.5-4.
(10) "Small business concern" means any eligible company which has a base
employment level of less than one hundred (100); provided, however, that a telecommunications
company may not qualify as a small business concern.
(11) "State" means the State of Rhode Island and Providence Plantations.
(12) "Units of new employment" means: (i) for eligible companies which are not small
business concerns, the amount of new employment divided by fifty (50), rounded down to the
nearest multiple of fifty (50), and (ii) for eligible companies which are small business concerns
the amount of new employment divided by ten (10), rounded down to the nearest multiple of ten
(10); provided, however, that an eligible company (other than an eligible company that is a
telecommunications company) with adjusted current employment of one hundred (100) or more
employees in its first year of operation or in any other period following the date its base
employment is determined shall determine its units of new employment by dividing the first one
hundred (100) employees less its base employment by ten (10), rounded down to the nearest
multiple of ten (10), and by dividing the number of additional employees in excess of one
hundred (100) by fifty (50), rounded down to the nearest multiple of fifty (50).
(13) "Telecommunications Company" means any public service company or corporation
whose rate of taxation is determined under section 44-13-4(4).
SECTION 3. This act shall take effect on September 1, 2003.