Chapter
165
2008 -- H 7953 SUBSTITUTE A
Enacted 07/02/08
A N A C T
RELATING TO STATE
AFFAIRS AND GOVERNMENT -- THE DEVELOPMENT SUBSIDY JOB GOALS ACCOUNTABILITY ACT
Introduced By: Representatives Lewiss, Slater, Dennigan, Jackson, and Naughton
Date Introduced: February 26, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. Section 42-64-10 of the General Laws in Chapter 42-64 entitled "Rhode
Island
Economic Development Corporation" is hereby amended to read as follows:
42-64-10.
Findings of the corporation. -- (a) Except as specifically provided in
this
chapter,
the Rhode Island economic development corporation shall not be empowered to
undertake
the acquisition, construction, reconstruction, rehabilitation, development, or
improvement
of a project, nor enter into a contract for any undertaking or for the
financing of this
undertaking,
unless it first:
(1) Finds:
(i) That the acquisition or construction and operation of the project will
prevent,
eliminate,
or reduce unemployment or underemployment in the state and will generally
benefit
economic
development of the state;
(ii) That adequate provision has been made or will be made for the payment of
the cost
of the
acquisition, construction, operation, and maintenance and upkeep of the
project;
(iii) That, with respect to real property, the plans and specifications assure
adequate
light, air,
sanitation, and fire protection;
(iv) That the project is in conformity with the applicable provisions of
chapter 23 of title
46; and
(v) That the project is in conformity with the applicable provisions of the
state guide
plan;
and
(2) Prepares and publicly releases an analysis of the impact the proposed
project will or
may have
on the State. The analysis shall be supported by such appropriate data
and
documentation
and shall consider, but not be limited to, the following factors:
(i) The impact on the industry or industries in which the completed project
will be
involved;
(ii) State fiscal matters, including the state budget (revenues and expenses);
(iii) The financial exposure of the taxpayers of the state under the plans for
the proposed
project
and negative foreseeable contingencies that may arise therefrom;
(iv) The approximate number of full-time, part-time, temporary, seasonal,
and/or
permanent jobs projected to be created, construction and
non-construction;
(v) Identification of geographic sources of the staffing for identified jobs;
(vi) The projected duration of the identified construction jobs;
(vii) The approximate wage rates for each category of the identified
jobs;
(viii) The types of fringe benefits to be provided with the identified jobs,
including
healthcare
insurance and any retirement benefits;
(ix) The projected fiscal impact on increased personal income taxes to the
state of Rhode
Island;
and
(x) The description of any plan or process intended to stimulate hiring from
the host
community,
training of employees or potential employees and outreach to minority job
applicants
and
minority businesses.
(b) With respect to the uses described in section 42-64-3(18), (23), (30),
(35), and (36)
and with
respect to projects situated on federal lands, the corporation shall not be
required to
make the
findings specified in subsection (a)(1)(i) of this section.
(c) Except for the findings specified in subsections (a)(1)(iv) and (a)(1)(v)
of this
section,
the findings of the corporation made pursuant to this section shall be binding
and
conclusive
for all purposes. Upon adoption by the corporation, any such findings shall
be
transmitted
to the division of taxation, and shall be made available to the public for
inspection by
any
person, and shall be published by the tax administrator on the tax division
website.
(d) The corporation shall monitor every impact analysis it completes through
the
duration
of any project incentives. Such monitoring shall include semi-annual
reports made
available
to the public on the: which shall
be transmitted to the division of taxation, and shall be
available
to the public for inspection by any person, and shall be published by the tax
administrator
on the tax division website. The annual reports on the impact analysis shall
include:
(1) Actual versus projected impact for all considered factors; and
(2) Verification of all commitments made in consideration of state incentives
or aid.
(e)
Upon its preparation and release of the analysis required by subsection (a)(2)
of this
section,
the corporation shall provide copies of that analysis to the chairpersons of
the house and
senate
finance committees, the house and senate fiscal advisors, the department of
labor and
training
and the division of taxation. Any such analysis shall be available to the
public for
inspection
by any person and shall be published by the tax administrator on the tax
division
website.
Annually thereafter, the department of labor and training shall certify to the
chairpersons
of the house and senate finance committees, the house and senate fiscal
advisors, the
corporation
and the division of taxation that: (i) the actual number of new full-time jobs
with
benefits
created by the project, not including construction jobs, is on target to meet
or exceed the
estimated
number of new jobs identified in the analysis above, and (ii) the actual number
of
existing
full-time jobs with benefits has not declined. This certification shall no
longer be
required
two (2) tax years after the terms and conditions of both the general assembly’s
joint
resolution
of approval required by section 42-64-20.1 of this chapter and any agreement
between
the
corporation and the project lessee have been satisfied. For purposes of this
section, “full-time
jobs
with benefits” means jobs that require working a minimum of thirty (30) hours
per week
within
the state, with a median wage that exceeds by five percent (5%) the median
annual wage
for
full-time jobs in Rhode Island and within the taxpayer’s industry, with a
benefit package that
includes
healthcare insurance plus other benefits typical of companies within the
project lessee’s
industry.
The department of labor and training shall also certify annually to the
chairpersons of
the
house and senate finance committees, the house and senate fiscal advisors, and
the division of
taxation
that jobs created by the project are “new jobs” in the state of Rhode Island,
meaning that
the
employees of the project are in addition to, and without a reduction in the
number of, those
employees
of the project lessee currently employed in Rhode Island, are not relocated
from
another
facility of the project lessee in Rhode Island or are employees assumed by the
project
lessee
as the result of a merger or acquisition of a company already located in Rhode Island.
The
certifications
made by the department of labor and training shall be available to the public
for
inspection
by any person and shall be published by the tax administrator on the tax
division
website.
(f)
The corporation, with the assistance of the taxpayer, the department of labor
and
training,
the department of human services and the division of taxation shall provide
annually an
analysis
of whether any of the employees of the project lessee has received RIte Care or
RIte
Share
benefits and the impact such benefits or assistance may have on the state
budget. Any such
analysis
shall be available to the public for inspection by any person and shall be
published by the
tax
administrator on the tax division website. Notwithstanding any other provision
of law or rule
or
regulation, the division of taxation, the department of labor and training and
the department of
human
services are authorized to present, review and discuss lessee-specific tax or
employment
information
or data with the Rhode Island Economic Development Corporation (RIEDC), the
chairpersons
of the house and senate finance committees, and/or the house and senate fiscal
advisors
for the purpose of verification and compliance with this tax credit reporting
requirement.
(g)
The corporation and the project lessee shall agree that, if at any time prior
to pay
back
of the amount of the sales tax exemption through new income tax collections
over three (3)
years,
not including construction job income taxes, the project lessee will be unable
to continue
the
project, or otherwise defaults on its obligations to the corporation, the
project lessee shall be
liable
to the state for all the sales tax benefits granted to the project plus
interest, as determined in
Rhode
Island General Law section 44-1-7, calculated from the date the project lessee
received the
sales
tax benefits.
(h)
Any agreements or contracts entered into by the corporation and the project
lessee
shall
be sent to the division of taxation and be available to the public for
inspection by any person
and
shall be published by the tax administrator on the tax division website.
(i)
By August 15th of each year the project lessee shall report the source and
amount of
any
bonds, grants, loans, loan guarantees, matching funds or tax credits received
from any state
governmental
entity, state agency or public agency as defined in section 37-2-7 received
during
the
previous state fiscal year. This annual report shall be sent to the division of
taxation and be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website.
(j)
By August 15th of each year the division of taxation shall report the name,
address, and
amount
of sales tax benefit each project lessee received during the previous state
fiscal year to the
corporation,
the chairpersons of the house and senate finance committees, the house and
senate
fiscal
advisors, the department of labor and training and the division of taxation.
This report shall
be
available to the public for inspection by any person and shall be published by
the tax
administrator
on the tax division website.
SECTION
2. Section 44-63-3 of the General Laws in Chapter 44-63 entitled
"Incentives
for
Innovation and Growth" is hereby amended to read as follows:
44-63-3.
Eligibility for credit. [Repealed pursuant to section 44-62-5.] – (a)
Only
companies
with business primarily in those industries or trades, identified by the
corporation
upon
advisory resolution of the Rhode Island Science and Technology Advisory Council
as
"Innovation
Industries" producing traded good or services, shall be eligible for the
Incentives for
Innovation
and Growth as provided in sections 44-63-1 and 44-63-2. An eligible company
must
make
application to the corporation prior to claiming the credit, and the
corporation shall be
authorized
to approve no more than two million dollars ($2,000,000) in credit applications
in any
two (2)
calendar year period.
(b)
The corporation shall approve no application under this chapter until it has
first
prepared
and publicly released an analysis of the impact the proposed investment will or
may
have on
the State. The analysis shall be supported by appropriate data and
documentation and
shall
consider, but not be limited to, the following factors:
(i)
The impact on the industry or industries in which the applicant will be
involved;
(ii)
State fiscal matters, including the state budget (revenues and expenses);
(iii)
The financial exposure of the taxpayers of the state under the plans for the
proposed
investment
and negative foreseeable contingencies that may arise therefrom;
(iv)
The approximate number of full-time, part-time, temporary, seasonal and/or
permanent
jobs projected to be created, construction and non-construction;
(v)
Identification of geographic sources of the staffing for identified jobs;
(vi)
The projected duration of the identified construction jobs;
(vii)
The approximate wage rates for each category of the identified jobs;
(viii)
The types of fringe benefits to be provided with the identified jobs, including
healthcare
insurance and any retirement benefits;
(ix)
The projected fiscal impact on increased personal income taxes to the state of
Rhode
Island;
and
(x)
The description of any plan or process intended to stimulate hiring from the
host
community,
training of employees or potential employees, and outreach to minority job
applicants
and minority businesses.
(c) The corporation shall monitor every impact analysis it completes through
the
duration
of any approved tax credit and for two (2) years after the taxpayer no longer
receives the
credit.
Such monitoring shall include annual reports which shall be transmitted to the
division of
taxation,
and shall be available to the public for inspection by any person, and shall be
published
by
the tax administrator on the tax division website. The annual reports on the
impact analysis
shall
include:
(1)
Actual versus projected impact for all considered factors; and
(2)
Verification of all commitments made in consideration of state incentives or
aid.
(d)
Upon its preparation and release of the analysis required by subsection (b) of
this
section,
the corporation shall provide copies of that analysis to the chairpersons of
the house and
senate
finance committees, the house and senate fiscal advisors, the department of
labor and
training
and the division of taxation. Any such analysis shall be available to the
public for
inspection
by any person and shall be published by the tax administrator on the tax
division
website.
Annually thereafter, through and including the second tax year after any
taxpayer has
applied
for and received a tax credit pursuant to this chapter, the department of labor
and training
shall
certify to the chairpersons of the house and senate finance committees, the
house and senate
fiscal
advisors, the corporation and the division of taxation that: (i) the actual
number of new
full-time
jobs with benefits created by the tax credit, not including construction jobs,
is on target
to
meet or exceed the estimated number of new jobs identified in the analysis
above; and (ii) the
actual
number of existing full-time jobs with benefits has not declined. For purposes
of this
section,
“full-time jobs with benefits” means jobs that require working a minimum of
thirty (30)
hours
per week within the state, with a median wage that exceeds by five percent (5%)
the
median
annual wage for full-time jobs in Rhode Island and within the taxpayer’s
industry, with a
benefit
package that includes healthcare insurance plus other benefits typical of
companies
within
the taxpayer’s industry. The department of labor and training shall also
certify annually to
the
chairpersons of the house and senate finance committees, the house and senate
fiscal advisors,
and
the division of taxation that jobs created by the tax credit are “new jobs” in
the state of Rhode
Island,
meaning that the employees of the project are in addition to, and without a
reduction of,
those
employees of the taxpayer currently employed in Rhode Island, are not relocated
from
another
facility of the taxpayer in Rhode Island or are employees assumed by the
taxpayer as the
result
of a merger or acquisition of a company already located in Rhode Island. The
certifications
made
by the department of labor and training shall be available to the public for
inspection by any
person
and shall be published by the tax administrator on the tax division website.
(e)
The corporation, with the assistance of the taxpayer, the department of labor
and
training,
the department of human services and the division of taxation shall provide
annually an
analysis
of whether any of the employees of the taxpayer has received RIte Care or RIte
Share
benefits
and the impact such benefits or assistance may have on the state budget. This
analysis
shall
be available to the public for inspection by any person and shall be published
by the tax
administrator
on the tax division website. Notwithstanding any other provision of law or rule
or
regulation,
the division of taxation, the department of labor and training and the
department of
human
services are authorized to present, review and discuss taxpayer-specific tax or
employment
information or data with the Rhode Island Economic Development Corporation
(RIEDC),
the chairpersons of the house and senate finance committees, and/or the house
and
senate
fiscal advisors for the purpose of verification and compliance with this tax
credit reporting
requirement.
(f)
Any agreements or contracts entered into by the corporation and the taxpayer
shall be
sent
to the division of taxation and be available to the public for inspection by
any person and
shall
be published by the tax administrator on the tax division website.
(g)
By August 15th of each year the taxpayer shall report the source and amount of
any
bonds,
grants, loans, loan guarantees, matching funds or tax credits received from any
state
governmental
entity, state agency or public agency as defined in section 37-2-7 received
during
the
previous state fiscal year. This annual report shall be sent to the division of
taxation and be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website.
(h)
By August 15th of each year the division of taxation shall report the name,
address,
and
amount of tax credit received for each taxpayer during the previous state
fiscal year to the
corporation,
the chairpersons of the house and senate finance committees, the house and
senate
fiscal
advisors, the department of labor and training and the division of taxation.
This report shall
be
available to the public for inspection by any person and shall be published by
the tax
administrator
on the tax division website.
SECTION
3. Section 42-64.5-5 of the General Laws in Chapter 42-64.5 entitled "Jobs
Development
Act" is hereby amended to read as follows:
42-64.5-5.
Election. – (a) An eligible company may elect to determine its
"base
employment"
for the purposes of this chapter on July 1 of any year subsequent to 1994,
rather
than on
July 1, 1994; provided, however, that an eligible company that is a
telecommunication
company shall
determine its base employment on either July 1, 2001 or July 1, 2002; and
provided,
further, that except as otherwise provided in this chapter, an eligible company
may not
use July
1, 2003 or any subsequent date to determine its base employment unless a
determination
has been
made by the board of directors of the Rhode Island economic development
corporation
that: (a)(i)but
for the incentives available under this chapter the company is not likely to
retain,
expand,
or add employment in this state; and (b)(ii) that the company has
provided reasonable
evidence
supporting a finding that the jobs retained, expanded, or added will generate
new tax
revenue
for the state that is at least equivalent to the value of this incentive.
As a result of the election, rules comparable to those set forth elsewhere in
this chapter
shall be
applied to determine the rate reduction available for each of the three (3)
taxable years
following
the first anniversary of the date the eligible company elected to use to
determine its
"base
employment" and for the taxable years following that three (3) year
period. This election:
(a)(i) shall be
made in a manner that may be determined by the tax administrator, and (b)(ii)
shall
not be
available to an eligible company that previously claimed a rate reduction under
this
chapter.
(b)
The corporation shall make no determination under subsection (a) of this
section until
it
has first prepared and publicly released an analysis of the impact the proposed
investment will
or
may have on the state. The analysis shall be supported by appropriate data and
documentation
and
shall consider, but not be limited to, the following factors:
(i)
The impact on the industry or industries in which the applicant will be involved;
(ii)
State fiscal matters, including the state budget (revenues and expenses);
(iii)
The financial exposure of the taxpayers of the state under the plans for the
proposed
investment
and negative foreseeable contingencies that may arise therefrom;
(iv)
The approximate number of full-time, part-time, temporary, seasonal and/or
permanent
jobs projected to be created, construction and non-construction;
(v)
Identification of geographic sources of the staffing for identified jobs;
(vi)
The projected duration of the identified construction jobs;
(vii)
The approximate wage rates for each category of the identified jobs;
(viii)
The types of fringe benefits to be provided with the identified jobs, including
healthcare
insurance and any retirement benefits;
(ix)
The projected fiscal impact on increased personal income taxes to the state of
Rhode
Island;
and
(x)
The description of any plan or process intended to stimulate hiring from the
host
community,
training of employees or potential employees, and outreach to minority job
applicants
and minority businesses.
(c)
The corporation shall monitor every impact analysis it completes through the
duration
of
any approved tax credit. Such monitoring shall include annual reports made
available to the
public
on the:
(1)
Actual versus projected impact for all considered factors; and
(2)
Verification of all commitments made in consideration of state incentives or
aid.
(d)
Upon its preparation and release of the analysis required by subsection (b) of
this
section,
the corporation shall provide copies of that analysis to the chairpersons of
the house and
senate
finance committees, the house and senate fiscal advisors, the department of
labor and
training
and the division of taxation. Any such analysis shall be available to the
public for
inspection
by any person and shall by published by the tax administrator on the tax
division
website.
Annually thereafter, through and including the second tax year after any
taxpayer has
applied
for and received a tax credit pursuant to this chapter, the department of labor
and training
shall
certify to the chairpersons of the house and senate finance committees, the
house and senate
fiscal
advisors, the corporation and the division of taxation that: (i) the actual
number of new
full-time
jobs with benefits created by the tax credit, not including construction jobs,
is on target
to
meet or exceed the estimated number of new jobs identified in the analysis
above, and (ii) the
actual
number of existing full-time jobs with benefits has not declined. For purposes
of this
section,
“full-time jobs with benefits” means jobs that require working a minimum of
thirty (30)
hours
per week within the state, with a median wage that exceeds by five percent (5
%) the
median
annual wage for full-time jobs in Rhode Island and within the taxpayer’s
industry, with a
benefit
package that includes healthcare insurance plus other benefits typical of
companies
within
the taxpayer’s industry. The department of labor and training shall also
certify annually to
the
chairpersons of the house and senate finance committees, the house and senate
fiscal advisors,
and the
division of taxation that jobs created by the tax credit are “new jobs” in the
state of Rhode
Island,
meaning that the employees of the project are in addition to, and without a
reduction of,
those
employees of the taxpayer currently employed in Rhode Island, are not relocated
from
another
facility of the taxpayer in Rhode Island or are employees assumed by the
taxpayer as the
result
of a merger or acquisition of a company already located in Rhode Island. The
certifications
made
by the department of labor and training shall be available to the public for
inspection by any
person
and shall be published by the tax administrator on the tax division website.
(e)
The corporation, with the assistance of the taxpayer, the department of labor
and
training,
the department of human services and the division of taxation shall provide
annually an
analysis
of whether any of the employees of the taxpayer has received RIte Care or RIte
Share
benefits
and the impact such benefits or assistance may have on the state budget. This
analysis
shall
be available to the public for inspection by any person and shall be published
by the tax
administrator
on the tax division website. Notwithstanding any other provision of law or rule
or
regulation,
the division of taxation, the department of labor and training and the
department of
human
services are authorized to present, review and discuss taxpayer-specific tax or
employment
information or data with the Rhode Island Economic Development Corporation
(RIEDC),
the house and senate fiscal committee chairs, and/or the house and senate
fiscal
advisors
for the purpose of verification and compliance with this tax credit reporting
requirement.
(f)
Any agreements or contracts entered into by the corporation and the taxpayer
shall be
sent
to the division of taxation and be available to the public for inspection by
any person and
shall
be published by the tax administrator on the tax division website
(g)
By August 15th of each year the taxpayer shall report the source and amount of
any
bonds,
grants, loans, loan guarantees, matching funds or tax credits received from any
state
governmental
entity, state agency or public agency as defined in section 37-2-7 received
during
the
previous state fiscal year. This annual report shall be sent to the division of
taxation and be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website.
(h)
By August 15th of each year the division of taxation shall report the name,
address,
and
amount of tax credit received for each taxpayer during the previous state
fiscal year to the
corporation,
the chairpersons of the house and senate finance committees, the house and
senate
fiscal
advisors, the department of labor and training and the division of taxation.
This report shall
be
available to the public for inspection by any person and shall be published by
the tax
administrator
on the tax division website.
SECTION
4. Chapter 42-64.3 of the General Laws entitled "Distressed Areas Economic
Revitalization
Act" is hereby amended by adding thereto the following section:
42-64.3-6.1.
Impact analysis and periodic reporting. -- (a) The council shall not
certify
any applicant as a qualified business under subsection 42-64.3-3(4) of this
chapter until it
has
first prepared and publicly released an analysis of the impact the proposed
investment will or
may
have on the state. The analysis shall be supported by appropriate data and
documentation
and
shall consider, but not be limited to, the following factors:
(i)
The impact on the industry or industries in which the applicant will be involved;
(ii)
State fiscal matters, including the state budget (revenues and expenses);
(iii)
The financial exposure of the taxpayers of the state under the plans for the
proposed
investment
and negative foreseeable contingencies that may arise therefrom;
(iv)
The approximate number of full-time, part-time, temporary, seasonal and/or
permanent
jobs projected to be created, construction and non-construction;
(v)
Identification of geographic sources of the staffing for identified jobs;
(vi)
The projected duration of the identified construction jobs;
(vii)
The approximate wage rates for each category of the identified jobs;
(viii)
The types of fringe benefits to be provided with the identified jobs, including
healthcare
insurance and any retirement benefits;
(ix)
The projected fiscal impact on increased personal income taxes to the state of
Rhode
Island;
and
(x)
The description of any plan or process intended to stimulate hiring from the
host
community,
training of employees or potential employees, and outreach to minority job
applicants
and minority businesses.
(b)
The council shall monitor every impact analysis it completes through the
duration of
any
approved tax credit. Such monitoring shall include annual reports made
available to the
public
on the:
(1)
Actual versus projected impact for all considered factors; and
(2)
Verification of all commitments made in consideration of state incentives or
aid.
(c)
Upon its preparation and release of the analysis required by subsection (b) of
this
section,
the council shall provide copies of that analysis to the chairpersons of the
house and
senate
finance committees, the house and senate fiscal advisors, the department of
labor and
training
and the division of taxation. Any such analysis shall be available to the
public for
inspection
by any person and shall by published by the tax administrator on the tax
division
website.
Annually thereafter, through and including the second tax year after any
taxpayer has
applied
for and received a tax credit pursuant to this chapter, the department of labor
and training
shall
certify to the chairpersons of the house and senate finance committees, the
house and senate
fiscal
advisors, the corporation and the division of taxation that: (i) the actual
number of new
full-time
jobs with benefits created by the tax credit, not including construction jobs,
is on target
to
meet or exceed the estimated number of new jobs identified in the analysis above;
and (ii) the
actual
number of existing full-time jobs with benefits has not declined. For purposes
of this
section,
“full-time jobs with benefits” means jobs that require working a minimum of
thirty (30)
hours
per week within the state, with a median wage that exceeds by five percent (5%)
the
median
annual wage for full-time jobs in Rhode Island and within the taxpayer’s
industry, with a
benefit
package that includes healthcare insurance plus other benefits typical of
companies
within
the taxpayer’s industry. The department of labor and training shall also
certify annually to
the
house and senate fiscal committee chairs, the house and senate fiscal advisors,
and the
division
of taxation that jobs created by the tax credit are “new jobs” in the state of
Rhode Island,
meaning
that the employees of the project are in addition to, and without a reduction
of, those
employees
of the taxpayer currently employed in Rhode Island, are not relocated from
another
facility
of the taxpayer in Rhode Island or are employees assumed by the taxpayer as the
result of
a
merger or acquisition of a company already located in Rhode Island. The
certifications made
by
the department of labor and training shall be available to the public for
inspection by any
person
and shall be published by the tax administrator on the tax division website.
(d)
The council, with the assistance of the taxpayer, the department of labor and
training,
the
department of human services and the division of taxation shall provide annually
an analysis
of
whether any of the employees of the taxpayer has received RIte Care or RIte
Share benefits
and
the impact such benefits or assistance may have on the state budget. This
analysis shall be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website. Notwithstanding any other provision of law or rule
or
regulation,
the division of taxation, the department of labor and training and the
department of
human
services are authorized to present, review and discuss taxpayer-specific tax or
employment
information or data with the council, the chairpersons of the house and senate
finance
committees, and/or the house and senate fiscal advisors for the purpose of
verification
and
compliance with this tax credit reporting requirement.
(e)
Any agreements or contracts entered into by the council and the taxpayer shall
be sent
to
the division of taxation and be available to the public for inspection by any
person and shall be
published
by the tax administrator on the tax division website.
(f)
By August 15th of each year the taxpayer shall report the source and amount of
any
bonds,
grants, loans, loan guarantees, matching funds or tax credits received from any
state
governmental
entity, state agency or public agency as defined in section 37-2-7 received
during
the
previous state fiscal year. This annual report shall be sent to the division of
taxation and be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website.
(g)
By August 15th of each year the division of taxation shall report the name,
address,
and
amount of tax credit received for each taxpayer during the previous state
fiscal year to the
council,
the chairpersons of the house and senate finance committees, the house and
senate fiscal
advisors,
the department of labor and training and the division of taxation. This report
shall be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website.
SECTION
5. Chapter 42-64.9 of the General Laws entitled "Mill Building and
Economic
Revitalization
Act" is hereby amended by adding thereto the following section:
42-64.9-6.2.
Impact analysis and periodic reporting. -- (a) The council shall not
designate
any building as a certified building under section 42-64.9-5 or section
42-64.9-6 of this
chapter
until it has first prepared and publicly released an analysis of the impact the
proposed
investment
will or may have on the state. The analysis shall be supported by appropriate
data and
documentation
and shall consider, but not be limited to, the following factors:
(i)
The impact on the industry or industries in which the applicant will be
involved;
(ii)
State fiscal matters, including the state budget (revenues and expenses);
(iii)
The financial exposure of the taxpayers of the state under the plans for the
proposed
investment
and negative foreseeable contingencies that may arise therefrom;
(iv)
The approximate number of full-time, part-time, temporary, seasonal and/or
permanent
jobs projected to be created, construction and non-construction;
(v)
Identification of geographic sources of the staffing for identified jobs;
(vi)
The projected duration of the identified construction jobs;
(vii)
The approximate wage rates for each category of the identified jobs;
(viii)
The types of fringe benefits to be provided with the identified jobs, including
healthcare
insurance and any retirement benefits;
(ix)
The projected fiscal impact on increased personal income taxes to the state of
Rhode
Island;
and
(x)
The description of any plan or process intended to stimulate hiring from the
host
community,
training of employees or potential employees, and outreach to minority job
applicants
and minority businesses.
(b)
The council shall monitor every impact analysis it completes through the
duration of
any
approved tax credit. Such monitoring shall include annual reports made
available to the
public
on the:
(1)
Actual versus projected impact for all considered factors; and
(2)
Verification of all commitments made in consideration of state incentives or
aid.
(c)
Upon its preparation and release of the analysis required by subsection (b) of
this
section,
the council shall provide copies of that analysis to the chairpersons of the
house and
senate
finance committees, the house and senate fiscal advisors, the department of
labor and
training
and the division of taxation. Any such analysis shall be available to the
public for
inspection
by any person and shall by published by the tax administrator on the tax
division
website.
Annually thereafter, through and including the second tax year after any
taxpayer has
applied
for and received a tax credit pursuant to this chapter, the department of labor
and training
shall
certify to the chairpersons of the house and senate finance committees, the
house and senate
fiscal
advisors, the corporation and the division of taxation that: (i) the actual
number of new
full-time
jobs with benefits created by the tax credit, not including construction jobs,
is on target
to
meet or exceed the estimated number of new jobs identified in the analysis
above, and (ii) the
actual
number of existing full-time jobs with benefits has not declined. For purposes
of this
section,
“full-time jobs with benefits” means jobs that require working a minimum of
thirty (30)
hours
per week within the state, with a median wage that exceeds by five percent (5%)
the
median
annual wage for full-time jobs in Rhode Island and within the taxpayer’s
industry, with a
benefit
package that includes healthcare insurance plus other benefits typical of
companies within
the
taxpayer’s industry. The department of labor and training shall also certify
annually to the
house
and senate fiscal committee chairs, the house and senate fiscal advisors, and
the division of
taxation
that jobs created by the tax credit are “new jobs” in the state of Rhode
Island, meaning
that
the employees of the project are in addition to, and without a reduction of,
those employees
of the
taxpayer currently employed in Rhode Island, are not relocated from another
facility of the
taxpayer
in Rhode Island or are employees assumed by the taxpayer as the result of a
merger or
acquisition
of a company already located in Rhode Island. The certifications made by the
department
of labor and training shall be available to the public for inspection by any
person and
shall
be published by the tax administrator on the tax division website.
(d)
The council, with the assistance of the taxpayer, the department of labor and
training,
the
department of human services and the division of taxation shall provide
annually an analysis
of
whether any of the employees of the taxpayer has received RIte Care or RIte
Share benefits
and the
impact such benefits or assistance may have on the state budget. This analysis
shall be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website. Notwithstanding any other provision of law or rule
or
regulation,
the division of taxation, the department of labor and training and the
department of
human
services are authorized to present, review and discuss taxpayer-specific tax or
employment
information or data with the council, the chairpersons of the house and senate
finance
committees, and/or the house and senate fiscal advisors for the purpose of
verification
and
compliance with this tax credit reporting requirement.
(e)
Any agreements or contracts entered into by the council and the taxpayer shall
be sent
to
the division of taxation and be available to the public for inspection by any
person and shall be
published
by the tax administrator on the tax division website.
(f)
By August 15th of each year the taxpayer shall report the source and amount of
any
bonds,
grants, loans, loan guarantees, matching funds or tax credits received from any
state
governmental
entity, state agency or public agency as defined in section 37-2-7 received
during
the
previous state fiscal year. This annual report shall be sent to the division of
taxation and be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website.
(g)
By August 15th of each year the division of taxation shall report the name,
address,
and
amount of tax credit received for each taxpayer during the previous state
fiscal year to the
council,
the chairpersons of the house and senate finance committees, the house and
senate fiscal
advisors,
the department of labor and training and the division of taxation. This report
shall be
available
to the public for inspection by any person and shall be published by the tax
administrator
on the tax division website.
SECTION
6. Chapter 44-31.2 of the General Laws entitled "Motion Picture Production
Tax
Credits" is hereby amended by adding thereto the following section:
44-31.2-6.1.
Impact analysis and periodic reporting. -- (a) The film office shall
not
certify
or approve any application under section 44-31.2-6 of this chapter until it has
first
prepared
and publicly released an analysis of the impact the proposed investment will or
may
have
on the state. The analysis shall be supported by appropriate data and documentation
and
shall
consider, but not be limited to, the following factors:
(i)
The impact on the industry or industries in which the applicant will be
involved;
(ii)
State fiscal matters, including the state budget (revenues and expenses);
(iii)
The financial exposure of the taxpayers of the state under the plans for the
proposed
investment
and negative foreseeable contingencies that may arise therefrom;
(iv)
The approximate number of full-time, part-time, temporary, seasonal and/or
permanent
jobs projected to be created, construction and non-construction;
(v)
Identification of geographic sources of the staffing for identified jobs;
(vi)
The projected duration of the identified construction jobs;
(vii)
The approximate wage rates for each category of the identified jobs;
(viii)
The types of fringe benefits to be provided with the identified jobs, including
healthcare
insurance and any retirement benefits;
(ix)
The projected fiscal impact on increased personal income taxes to the state of
Rhode
Island;
and
(x)
The description of any plan or process intended to stimulate hiring from the
host
community,
training of employees or potential employees, and outreach to minority job
applicants
and minority businesses.
(b)
The film office shall monitor every impact analysis it completes through the
duration
of
any approved tax credit. Such monitoring shall include annual reports made
available to the
public
on the:
(1)
Actual versus projected impact for all considered factors; and
(2)
Verification of all commitments made in consideration of state incentives or
aid.
(c)
Upon its preparation and release of the analysis required by subsection (b) of
this
section,
the film office shall provide copies of that analysis to the chairpersons of
the house and
senate
finance committees, the house and senate fiscal advisors, the department of
labor and
training
and the division of taxation. Any such analysis shall be available to the
public for
inspection
by any person and shall by published by the tax administrator on the tax
division
website.
Annually thereafter, through and including the second tax year after any
taxpayer has
applied
for and received a tax credit pursuant to this chapter, the department of labor
and training
shall
certify to the chairpersons of the house and senate finance committees, the
house and senate
fiscal
advisors, the corporation and the division of taxation that: (i) the actual
number of new
full-time
jobs with benefits created by the state-certified production, not including
construction
jobs,
is on target to meet or exceed the estimated number of new jobs identified in
the analysis
above,
and (ii) the actual number of existing full-time jobs with benefits has not
declined. For
purposes
of this section, “full-time jobs with benefits” means jobs that require working
a
minimum
of thirty (30) hours per week within the state, with a median wage that exceeds
by five
percent
(5 %) the median annual wage for full-time jobs in Rhode Island and within the
taxpayer’s
industry, with a benefit package that includes healthcare insurance plus other
benefits
typical
of companies within the motion picture industry. The department of labor and
training
shall
also certify annually to the house and senate fiscal committee chairs, the
house and senate
fiscal
advisors, and the division of taxation that jobs created by the state-certified
production are
“new
jobs” in the state of Rhode Island, meaning that the employees of the motion
picture
production
company are in addition to, and without a reduction of, those employees of the
motion
picture
production company currently employed in Rhode Island, are not relocated from
another
facility
of the motion picture production company in Rhode Island or are employees
assumed by
the
motion picture production company as the result of a merger or acquisition of a
company
already
located in Rhode Island. The certifications made by the department of labor and
training
shall
be available to the public for inspection by any person and shall be published
by the tax
administrator
on the tax division website.
(d)
The film office, with the assistance of the motion picture production company,
the
department
of labor and training, the department of human services and the division of
taxation
shall
provide annually an analysis of whether any of the employees of the motion
picture
production
company has received RIte Care or RIte Share benefits and the impact such
benefits
or
assistance may have on the state budget. This analysis shall be available to
the public for
inspection
by any person and shall be published by the tax administrator on the tax division
website.
Notwithstanding any other provision of law or rule or regulation, the division
of
taxation,
the department of labor and training and the department of human services are
authorized
to present, review and discuss project-specific tax or employment information
or data
with
the film office, the chairpersons of the house and senate finance committees,
and/or the
house
and senate fiscal advisors for the purpose of verification and compliance with
this tax
credit
reporting requirement.
(e)
Any agreements or contracts entered into by the film office and the motion
picture
production
company shall be sent to the division of taxation and be available to the
public for
inspection
by any person and shall be published by the tax administrator on the tax
division
website.
(f)
By August 15th of each year the motion picture production company shall report
the
source
and amount of any bonds, grants, loans, loan guarantees, matching funds or tax
credits
received
from any state governmental entity, state agency or public agency as defined in
section
37-2-7
received during the previous state fiscal year. This annual report shall be
sent to the
division
of taxation and be available to the public for inspection by any person and
shall be
published
by the tax administrator on the tax division website.
(g)
By August 15th of each year the division of taxation shall report the name,
address,
and
amount of tax credit received for each motion picture production company during
the
previous
state fiscal year to the film office, the chairpersons of the house and senate
finance
committees,
the house and senate fiscal advisors, the department of labor and training and
the
division
of taxation. This report shall be available to the public for inspection by any
person and
shall
be published by the tax administrator on the tax division website.
SECTION
7. Chapter 42-142 of the General Laws entitled "Department of
Revenue" is
hereby
amended by adding thereto the following section:
42-142-5.
Annual unified economic development budget report. – (a) The
director of
the
department of revenue shall, not later than October 15 of each state fiscal
year, compile and
publish,
in printed and electronic form, including on the Internet, an annual unified
economic
development
budget report which shall provide the following comprehensive information
regarding
the costs and benefits of all tax credits or other tax benefits conferred
pursuant to
sections
42-64-10, 44-63-3, 42-64.5-5, 42-64.3-6.1, 42-64.9-6.2 and 44-31.2-6.1 during
the
preceding
fiscal year:
(1)
The name of each recipient of any such tax credit or other tax benefit; the
dollar
amount
of each such tax credit or other tax benefit; and summaries of the number of
full-time and
part-time
jobs created or retained, employee benefits provided and the degree to which
job
creation
and retention, wage and benefit goals and requirements of recipient and related
corporations,
if any, have been met. The report shall include aggregate dollar amounts for
each
category
of tax credit or other tax benefit and for each geographical area within the
state; the
number
of recipients within each category of tax credit or other tax benefit; the
number of full-
time
and part-time jobs created or retained, the employee benefits provided; and the
degree to
which
job creation and retention, wage and benefit rate goals and requirements have
been met
within
each category of tax credit or other tax benefit; and
(2)
The dollar amounts of all such tax credits and other tax benefits by each
approving
authority
pursuant to sections 42-64-10, 44-63-3, 42-64.5-5, 42-64.3-6.1, 42-64.9-6.2 and
44-
31.2-6.1,
together with the cost to the state and to the approving agency; the value of
the tax
credit
or other tax benefits to each recipient thereof; and summaries of the number of
full-time
and
part-time jobs created or retained, employee benefits provided, and the degree
to which job
creation
and retention, wage and benefit rate goals and requirements of the recipients
and related
corporations,
if any, have been met.
(b)
The director of the department of revenue shall provide to the general
assembly, as
part
of the annual budget request of the governor, and shall make available to the
public via the
Internet,
a comprehensive presentation of the costs of all such tax credits and other tax
benefits to
the
state during the preceding fiscal year, an estimate of the anticipated costs of
such tax credits
and other
tax incentives for the then-current fiscal year, and an estimate of the costs
of all such
tax
credits or other tax benefits for the fiscal year of the requested budget,
including, but not
limited
to:
(1)
The total cost to the state of tax expenditures resulting from such tax credits
and other
tax
benefits, the costs for each category of tax credits and other tax benefits,
and the amounts of
tax
credits and other tax benefits by geographical area;
(2)
The extent to which any employees of and recipients of any such tax credits or
other
tax
benefits has received RIte Care or RIte Share benefits or assistance and the
impact that any
such
benefits or assistance may have on the state budget; and
(3)
The cost to the state of all appropriated expenditures for such tax credits and
other tax
benefits,
including line-item budgets for every state-funded entity concerned with
economic
development,
including, but not limited to, the department of labor and training, the
department
of
education, the economic development corporation, the commissioner of higher
education, and
the
research and business assistance programs of public institutions of higher
education.
(c)
Forthwith upon passage of this act, the director of the department of revenue
shall
undertake
to develop a method and a procedure for the collection and analysis of
comprehensive
information
on the basis of which the costs and the fiscal and social efficacies associated
with
those
tax credits and other tax benefits conferred pursuant to sections 44-31-1,
44-31-1.1, 44-31-
2,
44-32-2, 44-32-3, 44-42-2 and 44-55-4 may be evaluated and weighed by the
executive and
legislative
branches of state government. On or before December 31, 2008, the director
shall
report
to the governor and to the chairpersons of the house and senate committees on
finance
upon
his or her compliance with this subsection and set forth his conclusions and
recommendations
with respect thereto.
SECTION
8. This act shall take effect upon passage.
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LC01690/SUB A/3
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