Chapter 173
2008 -- S 2661
SUBSTITUTE A
Enacted 07/02/08
A N A C T
RELATING
STATE AFFAIRS AND GOVERNMENT -- TAX INCENTIVE DISCLOSURE
AND
ACCOUNTABILITY
Introduced
By: Senators Paiva-Weed, J Montalbano, Algiere, Lenihan, and Perry
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 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 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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LC02103/SUB A/4
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