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art.019/4/019/3
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ARTICLE 19 AS AMENDED
RELATING TO COMMERCE CORPORATION AND ECONOMIC DEVELOPMENT

     SECTION 1. Section 42-64-13 of the General Laws in Chapter 42-64 entitled "Rhode
Island Commerce Corporation" is hereby amended to read as follows:
     42-64-13. Relations with municipalities. -- (a) (1) With respect to projects situated on
federal land, the Rhode Island commerce corporation is authorized to plan, construct, reconstruct,
rehabilitate, alter, improve, develop, maintain, and operate projects: (i) in conformity with the
applicable provisions of chapter 1 of title 2 except that the projects shall not require the approval
of a town or city council provided for in § 2-1-21, and (ii) without regard to the zoning or other
land use ordinances, codes, plans, or regulations of any municipality or political subdivision;
provided, however, that the exemption from the zoning or other land use ordinances, codes, plans,
or regulations shall be subject to the corporation's compliance with the provisions of this
subsection. Projects which are planned, constructed, reconstructed, rehabilitated, altered,
improved, or developed by the corporation on federal land in accordance with the provisions of
this subsection may be maintained and operated by lessees from and successors in interest to the
corporation in the same manner as if the projects had been in existence prior to the enactment of
the zoning or other land use ordinances, codes, plans, or regulations which, but for this chapter,
would otherwise be applicable. With respect to other projects of the commerce corporation, or
projects receiving state incentives as administered by the commerce corporation, developers are
authorized to plan, construct, reconstruct, rehabilitate, alter, improve, develop, maintain, and
operate a project subject only to the state building code and the state fire code, and all inspections
regarding any such project shall be conducted by the state building commissioner or his designee
without regard to the building and fire codes of any municipality or political subdivision;
provided, however, that the exemption from the building and fire codes shall be subject to the
corporation's compliance with the provisions of this subsection.
      (2) As used in this section, "the comprehensive plan" means a comprehensive plan
adopted pursuant to chapter 22 of title 45 by a planning board or commission; "the applicable
comprehensive plan" shall mean the comprehensive plan of any municipality within which any
project is to be situated, in whole or in part; and "the project plan" shall mean a general
description of a proposed project situated on federal land, describing in reasonable detail its
location, nature, and size. A zoning ordinance adopted by a municipality pursuant to chapter 24 of
title 45 shall not be deemed to be a comprehensive plan nor a statement of the land use goals,
objectives, and standards.
      (3) If any project plan of the corporation with respect to projects situated on federal land
conforms to the land use goals, objectives, and standards of the applicable comprehensive plan as
of the time of the corporation's adoption of the project plan, or if there is no applicable
comprehensive plan, then before proceeding with the project described in the project plan, the
corporation shall refer the project plan to the appropriate community advisory committee which
may thereafter hold any public hearings as it may deem to be desirable for the purpose of
permitting the public to comment on the project plan. The community advisory committee shall
not later than forty-five (45) days after its receipt of the project plan, transmit its comments on the
project plan, in either written or oral form, to the corporation and thereupon, or upon the
community advisory committee's failure to take any action within the time specified, the
corporation shall be authorized to proceed with the project described in the project plan without
regard to the zoning or other land use ordinances, codes, plans, or regulations of a municipality
within which the project is to be situated in whole or in part.
      (4) If any project plan of the corporation with respect to projects situated on federal land
does not conform to the land use goals, objectives, and standards of the applicable comprehensive
plan as of the time of the corporation's adoption of the project plan, then, before proceeding with
the project described in the project plan, the corporation shall refer the project plan to the local
governing body of any municipality within which any project is to be situated, in whole or in part.
The local governing body may thereafter hold any public hearings as it may deem to be desirable
for the purpose of permitting the public to comment on the project plan. The local governing
body shall, not later than forty-five (45) days after its receipt of the project plan, advise the
corporation of its approval or disapproval of that plan. If it shall disapprove the project plan, the
corporation shall nevertheless be authorized to proceed with the project described in the project
plan (without regard to the zoning or other land use ordinances, codes, plans, or regulations of a
municipality within which the project is to be situated in whole or in part) upon the subsequent
affirmative vote of a majority of the members of the board of directors then holding office as
directors taken at a meeting open to the public. If the local governing body approves the project
plan or fails to take any action within the time specified, the corporation shall be authorized to
proceed with the project described in the project plan without regard to the zoning or other land
use ordinances, codes, plans, or regulations of a municipality within which the project is to be
situated in whole or in part.
      (5) The project plan's conformity with the applicable comprehensive plan shall be
determined by the board of directors of the corporation and its determination shall be binding and
conclusive for all purposes.
      (b) With respect to projects situated on real property other than federal land, the
corporation shall plan, construct, reconstruct, rehabilitate, alter, improve, develop, maintain, and
operate projects in conformity with the applicable zoning or other land use ordinances, codes,
plans, or regulations of any municipality or political subdivision of the state in which those
projects are situated.
      (c) The corporation shall, in planning, constructing, reconstructing, rehabilitating,
altering, or improving any project, comply with all requirements of state and federal laws, codes,
or regulations applicable to that planning, construction, reconstruction, rehabilitation, alteration,
or improvement. The corporation shall adopt a comprehensive building code (which may, but
need not be, the BOCA Building Officials and Code Administrators International Code) with
which all projects shall comply. That adoption shall not preclude the corporation's later adoption
of a different comprehensive building code or of its alteration, amendment, or supplementation of
any comprehensive building code so adopted. Except as otherwise specifically provided to the
contrary, no municipality or other political subdivision of the state shall have the power to modify
or change in whole or in part the drawings, plans, or specifications for any project of the
corporation; nor to require that any person, firm, or corporation employed with respect to that
project perform work in any other or different manner than that provided by those drawings,
plans, and specifications; nor to require that any such person, firm, or corporation obtain any
approval, permit, or certificate from the municipality or political subdivision in relation to the
project; and the doing of that work by any person, firm, or corporation in accordance with the
terms of those drawings, plans, specifications, or contracts shall not subject the person, firm, or
corporation to any liability or penalty, civil or criminal, other than as may be stated in the
contracts or may be incidental to the proper enforcement thereof; nor shall any municipality or
political subdivision have the power to require the corporation, or any lessee or successor in
interest, to obtain any approval, permit, or certificate from the municipality or political
subdivision as a condition of owning, using, maintaining, operating, or occupying any project
acquired, constructed, reconstructed, rehabilitated, altered, or improved by the corporation or
pursuant to drawings, plans, and specifications made or approved by the corporation; provided,
however, that nothing contained in this subsection shall be deemed to relieve any person, firm, or
corporation from the necessity of obtaining from any municipality or other political subdivision
of the state any license which, but for the provisions of this chapter, would be required in
connection with the rendering of personal services or sale at retail of tangible personal property.
      (d) Except to the extent that the corporation shall expressly otherwise agree, a
municipality or political subdivision, including, but not limited to, a county, city, town, or district,
in which a project of the corporation is located, shall provide for the project, whether then owned
by the corporation or any successor in interest, police, fire, sanitation, health protection, and other
municipal services of the same character and to the same extent as those provided for other
residents of that municipality or political subdivision, but nothing contained in this section shall
be deemed to require any municipality or political subdivision to make capital expenditures for
the sole purpose of providing any of these services for that project.
      (e) In carrying out a project, the corporation shall be empowered to enter into contractual
agreements with municipalities and public corporations and those municipalities and public
corporations are authorized and empowered, notwithstanding any other law, to enter into any
contractual agreements with the corporation and to do all things necessary to carry out their
obligations under the agreements.
      (f) Notwithstanding the provisions of any general, special, or local law or charter,
municipalities and public corporations are empowered to purchase, or to lease for a term not
exceeding ninety-nine (99) years, projects of the corporation, upon any terms and conditions as
may be agreed upon by the municipality or public corporation and the corporation.
     SECTION 2. Section 42-64.16-2 of the General Laws in Chapter 42-64.16 entitled "The
Innovate Rhode Island Small Business Program" is hereby amended to read as follows:
     42-64.16-2. Establishment of matching funds program. -- (a) There is established the
Rhode Island SBIR/STTR Matching Funds Program to be administered by STAC. In order to
foster job creation and economic development in the state, STAC may provide grants to eligible
businesses to match funds received by a business as a SBIR or STTR Phase I or II award, loans to
eligible businesses to match funds received by a business as a SBIR or STTR Phase II award, and
to encourage businesses to apply for further Phase II and Phase III SBIR or STTR awards,
respectively and commercialize their technology and research.
      (b) Eligibility. - In order to be eligible for a grant under this section, a business must
satisfy all of the following conditions:
      (1) The business must be a for-profit, Rhode Island-based business with fifty (50) or
fewer employees. For the purposes of this section, Rhode Island-based business is one that has its
principal place of business and at least fifty-one percent (51%) of its employees residing in this
state.
      (2) The business must have received an SBIR/STTR Phase I award from a participating
federal agency in response to a specific federal solicitation. To receive the full Phase I matching
grant, the business must also have submitted a final Phase I report, demonstrated that the
sponsoring agency has interest in the Phase II proposal, and submitted a Phase II proposal to the
agency. To receive the full Phase II matching loan grant, the business must also have submitted a
final Phase II report, demonstrated that the sponsoring agency has interest in the Phase III
proposal, and submitted a Phase III proposal to the agency.
      (3) The business must satisfy all federal SBIR/STTR requirements.
      (4) The business shall not receive concurrent funding support from other sources that
duplicates the purpose of this section.
      (5) For a Phase I and II matching grant, the business must certify that at least fifty-one
percent (51%) of the research described in the federal SBIR/STTR Phase I, II and any further
SBIR/STTR proposal proposals and commercialization will be conducted in this state and that the
business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase I, II
any further SBIR/STTR project projects and commercialization. For a Phase II matching loan, the
business must certify that at least fifty- one percent (51%) of the research described in the federal
SBIR/STTR Phase III proposal will be conducted in this state and that the business will remain a
Rhode Island-based business for the duration of the SBIR/STTR Phase III project.
      (6) For a Phase I and II matching grant, the business must demonstrate its ability to
conduct research in its SBIR/STTR Phase II proposal. For a Phase II matching loan, the business
must demonstrate its ability to conduct research in its SBIR/STTR Phase III proposal.
      (c) Phase I and II Matching Grant. - STAC may award grants to match the funds
received by a business through a SBIR/STTR Phase I or II proposal up to a maximum of one
hundred thousand dollars ($100,000) one hundred fifty thousand dollars ($150,000). Seventy-five
percent (75%) of the total grant shall be remitted to the business upon receipt of the SBIR/STTR
Phase I or II award and application for funds under this section. Twenty-five percent (25%) of the
total grant shall be remitted to the business upon submission by the business of the Phase II
application to the funding agency and acceptance of the Phase I or II report by the funding
agency. A business may receive only one grant under this section per year. A business may
receive only one grant under this section with respect to each federal proposal submission. Over
its lifetime, a business may receive a maximum of six (6) awards under this section.
      (d) Phase II Matching Loan. - STAC may award loans to match the funds received by a
business through a SBIR/STTR Phase II proposal up to a maximum of three hundred thousand
dollars ($300,000) that must be secured by sufficient assets of the business. Seventy-five percent
(75%) of the total loan shall be remitted to the business upon receipt of the SBIR/STTR Phase II
award and application for funds under this section. Twenty-five percent (25%) of the total loan
shall be remitted to the business upon submission by the business of the Phase III application to
the funding agency and acceptance of the Phase I report by the funding agency. A business may
receive only one loan under this section per year. A business may receive only one loan under this
section with respect to each federal proposal submission. Over its lifetime, a business may receive
a maximum of six (6) loans under this section.
      (e)(d) Application. - A business shall apply, under oath, to STAC for a grant or loan
under this section on a form prescribed by STAC that includes at least all of the following:
      (1) The name of the business, the form of business organization under which it is
operated, and the names and addresses of the principals or management of the business.
      (2) For a Phase I or II matching grant, an acknowledgement of receipt of the Phase I or II
report and Phase II proposal by the relevant federal agency. For a Phase II matching loan, an
acknowledgement of receipt of the Phase II report and Phase III proposal by the relevant federal
agency.
      (3) Any other information necessary for STAC to evaluate the application.
     SECTION 3. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.20
REBUILD RHODE ISLAND TAX CREDIT
     42-64.20-1. Short title. -- This chapter shall be known and may be cited as the "Rebuild
Rhode Island Tax Credit Act."
     42-64.20-2. Findings and declarations. -- (a) It is hereby found and declared that due to
long-term and short-term stagnant or declining economic trends in Rhode Island, businesses in
the state have found it difficult to make investments that would stimulate economic activity and
create new jobs for the citizens of the state. Moreover, such economic trends have caused
business closures or out-of-state business relocations, while other out-of-state businesses are
deterred from relocating to this state. This situation has contributed to a high rate of
unemployment in the state. Consequently, a need exists to promote the retention and expansion of
existing jobs, stimulate the creation of new jobs, attract new business and industry to the state,
and stimulate growth in real estate developments and/or businesses that are prepared to make
meaningful investment and foster job creation in Rhode Island.
     (b) Through the establishment of a rebuild Rhode Island tax credit program, Rhode Island
can take steps to stimulate business development; retain and attract new business and industry to
the state; create good-paying jobs for its residents; assist with business, commercial, and
industrial real estate development; and generate revenues for necessary state and local
governmental services.
     42-64.20-3. Definitions. -- As used in this chapter:
     (1) "Adaptive Reuse" means the conversion of an existing structure from the use for
which it was constructed to a new use by maintaining elements of the structure and adapting such
elements to a new use.
      (2) "Affiliate" means an entity that directly or indirectly controls, is under common
control with, or is controlled by the business. Control exists in all cases in which the entity is a
member of a controlled group of corporations as defined pursuant to § 1563 of the Internal
Revenue Code of 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of
organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the
Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and
convincing evidence, as determined by the tax administrator, that control exists in situations
involving lesser percentages of ownership than required by those statutes. An affiliate of a
business may contribute to meeting either the capital investment or full-time employee
requirements of a business that applies for a credit under this chapter.
     (3) "Affordable housing" means housing for sale or rent with combined rental costs or
combined mortgage loan debt service, property taxes, and required insurance that do not exceed
thirty percent (30%) of the gross annual income of a household earning up to eighty percent
(80%) of the area median income, as defined annually by the United States Department of
Housing and Urban Development.
     (4) "Applicant" means a developer applying for a rebuild Rhode Island tax credit under
this chapter.
     (5) "Business" means a corporation as defined in general laws § 44-11-1(4), or a
partnership, an S corporation, a non-profit corporation, a sole proprietorship, or a limited liability
corporation. A business shall include an affiliate of the business if that business applies for a
credit based upon any capital investment made by an affiliate.
     (6) "Capital investment" in a real estate project means expenses by a developer incurred
after application for:
     (i) Site preparation and construction, repair, renovation, improvement, equipping, or
furnishing on real property or of a building, structure, facility, or improvement to real property;
     (ii) Obtaining and installing furnishings and machinery, apparatus, or equipment,
including but not limited to material goods for the operation of a business on real property or in a
building, structure, facility, or improvement to real property.
     In addition to the foregoing, if a developer acquires or leases a qualified development
project, the capital investment made or acquired by the seller or owner, as the case may be, if
pertaining primarily to the premises of the qualified development project, shall be considered a
capital investment by the developer and, if pertaining generally to the qualified development
project being acquired or leased, shall be allocated to the premises of the qualified development
project on the basis of the gross leasable area of the premises in relation to the total gross leasable
area in the qualified development project. The capital investment described herein shall be
defined through rules and regulations promulgated by the commerce corporation.
     (7) "Certified historic structure" means a property which is located in the state of Rhode
Island and is
     (i) Listed individually on the national register of historic places; or
     (ii) Listed individually in the state register of historic places; or
     (iii) Located in a registered historic district and certified by either the Rhode Island
historical preservation and heritage commission created pursuant to § 42-45-2 or the Secretary of
the Interior as being of historic significance to the district.
     (8) "Commerce corporation" means the Rhode Island commerce corporation established
pursuant to general laws § 42-64-1 et. seq.
     (9) "Commercial" shall mean non-residential development.
     (10) "Developer" means a person, firm, business, partnership, association, political
subdivision, or other entity that proposes to divide, divides, or causes to be divided real property
into a subdivision or proposes to build, or builds a building or buildings or otherwise improves
land or existing structures, which division, building, or improvement qualifies for benefits under
this chapter.
     (11) "Development" means the improvement of land through the carrying out of building,
engineering, or other operations in, on, over, or under land, or the making of any material change
in the use of any buildings or land for the purposes of accommodating land uses.
     (12) "Eligibility period" means the period in which a developer may claim a tax credit
under this act, beginning with the tax period in which the commerce corporation accepts
certification from the developer that it has met the requirements of the act and extending
thereafter for a term of five (5) years.
     (13) "Full-time employee" means a person who is employed by a business for
consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other
standard of service generally accepted by custom or practice as full-time employment, or who is
employed by a professional employer organization pursuant to an employee leasing agreement
between the business and the professional employer organization for a minimum of thirty-five
(35) hours per week, or who renders any other standard of service generally accepted by custom
or practice as full-time employment, and whose wages are subject to withholding.
     (14) "Hope community" means a municipality for which the five (5) year average
percentage of families with income below the federal poverty level exceeds the state five (5) year
average percentage, both as most recently reported by the U.S. Department of Commerce, Bureau
of the Census.
     (15) "Mixed use" means a development comprising both commercial and residential
components.
     (16) "Partnership" means an entity classified as a partnership for federal income tax
purposes.
     (17) "Placed in service" means the earlier of i) substantial construction or rehabilitation
work has been completed which would allow for occupancy of an entire structure or some
identifiable portion of a structure, as established in the application approved by the commerce
corporation board or ii) receipt by the developer of a certificate, permit or other authorization
allowing for occupancy of the project or some identifiable portion of the project by the municipal
authority having jurisdiction.
     (18) "Project" means qualified development project as defined under subsection (23) of
this chapter.
     (19) "Project area" means land or lands under common ownership or control in which a
qualified development project is located.
     (20) "Project cost" means the costs incurred in connection with the qualified development
project or qualified residential or mixed use project by the applicant until the issuance of a
permanent certificate of occupancy, or until such other time specified by the commerce
corporation, for a specific investment or improvement, as defined through rules and regulations
promulgated by the commerce corporation.
     (21) "Project financing gap" means
     (i) The part of the total project cost that remains to be financed after all other sources of
capital have been accounted for (such sources will include, but not be limited to, developer-
contributed capital), which shall be defined through rules and regulations promulgated by the
commerce corporation, or
     (ii) The amount of funds that the state may invest in a project to gain a competitive
advantage over a viable and comparable location in another state by means described in this
chapter.
     (22) "Qualified development project" means a specific construction project or
improvement, including lands, buildings, improvements, real and personal property or any
interest therein, including lands under water, riparian rights, space rights and air rights, acquired,
owned, leased, developed or redeveloped, constructed, reconstructed, rehabilitated or improved,
undertaken by a developer, owner or tenant, or both, within a specific geographic area, meeting
the requirements of this chapter, as set forth in an application made to the commerce corporation.
     (23) "Recognized historical structure" means a property which is located in the state of
Rhode Island and is commonly considered to be of historic or cultural significance as determined
by the commerce corporation in consultation with the state historic preservation officer.
     (24) "Residential" means a development of residential dwelling units.
     (25) "Targeted industry" means any advanced, promising or otherwise prioritized
industry identified in the economic development vision and policy promulgated pursuant General
Laws § 42-64.17-1 or, until such time as any such economic development vision and policy is
promulgated, as identified by the commerce corporation.
     (26) "Transit oriented development area" means an area in proximity to transit
infrastructure that will be further defined by regulation of the commerce corporation in
consultation with the Rhode Island department of transportation.
     (27) "Workforce housing" means housing for sale or rent with combined rental costs or
combined mortgage loan debt service, property taxes, and required insurance that do not exceed
thirty percent (30%) of the gross annual income of a household earning between eighty percent
(80%) and one hundred and forty percent (140%) of the area median income, as defined annually
by the United States Department of Housing and Urban Development.
     42-64.20-4. Establishment of program. -- The rebuild Rhode Island tax credit program
is hereby established as a program under the jurisdiction and administration of the commerce
corporation. The program may provide tax credits to applicants meeting the requirements of this
chapter for an eligibility period of five (5) years. On an annual basis, the commerce corporation
shall confer with the executive office of commerce, the department of administration, and the
division of taxation regarding the availability of funds for the award of new tax credits.
     42-64.20-5. Tax credits. -- (a) An applicant meeting the requirements of this chapter may
be allowed a credit as set forth hereinafter against taxes imposed upon such person under
applicable provisions of title 44 of the general laws for a qualified development project.
     (b) To be eligible as a qualified development project entitled to tax credits, an applicant's
chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the
time of application, that:
     (1) The applicant has committed capital investment or owner equity of not less than
twenty percent (20%) of the total project cost;
     (2) There is a project financing gap in which after taking into account all available private
and public funding sources, the project is not likely to be accomplished by private enterprise
without the tax credits described in this chapter; and
     (3) The project fulfills the state's policy and planning objectives and priorities in that:
     (i) The applicant will, at the discretion of the commerce corporation, obtain a tax
stabilization agreement from the municipality in which the real estate project is located on such
terms as the commerce corporation deems acceptable;
     (ii) It (A) is a commercial development consisting of at least 25,000 square feet occupied
by at least one business employing at least 25 full-time employees after construction or such
additional full-time employees as the commerce corporation may determine; (B) is a multi-family
residential development in a new, adaptive reuse, certified historic structure, or recognized
historical structure consisting of at least 20,000 square feet and having at least 20 residential units
in a hope community; or (C) is a mixed use development in a new, adaptive reuse, certified
historic structure, or recognized historical structure consisting of at least 25,000 square feet
occupied by at least one business, subject to further definition through rules and regulations
promulgated by the commerce corporation; and
     (iii) Involves a total project cost of not less than $5,000,000, except for a qualified
development project located in a hope community or redevelopment area designated under § 45-
32-4 of the general laws in which event the commerce corporation shall have the discretion to
modify the minimum project cost requirement.
     (c) Applicants qualifying for a tax credit pursuant to chapter 44-33.6 of the General Laws
shall be exempt from the requirements of subsections (b)(3)(ii) and (b)(3)(iii) of this section. The
following procedure shall apply to such applicants:
     (1) The division of taxation shall remain responsible for determining the eligibility of an
applicant for tax credits awarded under chapter 44-33.6 of the General Laws;
     (2) The commerce corporation shall retain sole authority for determining the eligibility of
an applicant for tax credits awarded under this chapter; and
     (3) The commerce corporation shall not award in excess of fifteen percent (15%) of the
annual amount appropriated in any fiscal year to applicants seeking tax credits pursuant to this
subsection (c).
     (d) Maximum project credit. (i) For qualified development projects, the maximum tax
credit allowed under this chapter shall be the lesser of (1) thirty percent (30%) of the total project
cost; or (2) the amount needed to close a project financing gap (after taking into account all other
private and public funding sources available to the project), as determined by the commerce
corporation.
     (ii) The credit allowed pursuant to this chapter shall not exceed fifteen million dollars
($15,000,000) for any qualified development project under this chapter. No building or qualified
development project to be completed in phases or in multiple projects shall exceed the maximum
project credit of fifteen million dollars ($15,000,000) for all phases or projects involved in the
rehabilitation of such building.
     (e) Credits available under this chapter shall not exceed twenty percent (20%) of the
project cost, provided, however, that the applicant shall be eligible for additional tax credits of not
more than ten percent (10%) of the project cost, if the qualified development project meets any of
the following criteria or other additional criteria determined by the commerce corporation from
time to time in response to evolving economic or market conditions:
     (1) The project includes adaptive reuse or development of a recognized historical
structure;
     (2) The project is undertaken by or for a targeted industry;
     (3) The project is located in a transit oriented development area;
     (4) The project includes residential development of which at least twenty percent (20%)
of the residential units are designated as affordable housing or workforce housing;
     (5) The project includes the adaptive reuse of property subject to the requirements of the
industrial property remediation and reuse act, sections 23-19.14-1, et seq. of the general laws; or
     (6) The project includes commercial facilities constructed in accordance with the
minimum environmental and sustainability standards, as certified by the commerce corporation
pursuant to Leadership in Energy and Environmental Design or other equivalent standards.
     (f) Tax credits shall not be allowed under this chapter prior to the taxable year in which
the project is placed in service.
     (g) The amount of a tax credit allowed under this chapter shall be allowable to the
taxpayer in up to five annual increments; no more than thirty percent (30%) and no less than
fifteen percent (15%) of the total credits allowed to a taxpayer under this chapter may be
allowable for any taxable year.
     (h) If the portion of the tax credit allowed under this chapter exceeds the taxpayer's total
tax liability for the year in which the relevant portion of the credit is allowed, the amount that
exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for
the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits
allowed to a partnership, a limited liability company taxed as a partnership, or multiple owners of
property shall be passed through to the persons designated as partners, members or owners
respectively pro rata or pursuant to an executed agreement among such persons designated as
partners, members or owners documenting an alternate distribution method without regard to
their sharing of other tax or economic attributes of such entity.
     (i) The commerce corporation in consultation with the division of taxation shall establish,
by regulation, the process for the assignment, transfer or conveyance of tax credits.
     (j) For purposes of this chapter, any assignment or sales proceeds received by the
taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be
exempt from taxation under title 44 of the general laws. If a tax credit is subsequently revoked or
adjusted, the seller's tax calculation for the year of revocation or adjustment shall be increased by
the total amount of the sales proceeds, without proration, as a modification under chapter 30 of
title 44 of the general laws. In the event that the seller is not a natural person, the seller's tax
calculation under chapters 11, 13, 14, or 17 of title 44 of the general laws, as applicable, for the
year of revocation, or adjustment, shall be increased by including the total amount of the sales
proceeds without proration.
     (k) The tax credit allowed under this chapter may be used as a credit against corporate
income taxes imposed under chapters 11, 13, 14, or 17, of title 44, or may be used as a credit
against personal income taxes imposed under chapter 30 of title 44 for owners of pass-through
entities such as a partnership, a limited liability company taxed as a partnership, or multiple
owners of property.
     (l) In the case of a corporation, this credit is only allowed against the tax of a corporation
included in a consolidated return that qualifies for the credit and not against the tax of other
corporations that may join in the filing of a consolidated tax return.
     (m) Upon request of a taxpayer and subject to annual appropriation, the state shall
redeem such credit in whole or in part for ninety percent (90%) of the value of the tax credit. The
division of taxation, in consultation with the commerce corporation, shall establish by regulation
a redemption process for tax credits.
     (n) Projects eligible to receive a tax credit under this chapter may, at the discretion of the
commerce corporation, be exempt from sales and use taxes imposed on the purchase of the
following classes of personal property only to the extent utilized directly and exclusively in such
project: (1) furniture, fixtures and equipment, except automobiles, trucks or other motor vehicles;
or (2) such other materials, including construction materials and supplies, that are depreciable and
have a useful life of one year or more and are essential to the project.
     (o) The commerce corporation shall promulgate rules and regulations for the
administration and certification of additional tax credit under subsection (e) of this section,
including criteria for the eligibility, evaluation, prioritization, and approval of projects that
qualify for such additional tax credit.
     (p) The commerce corporation shall not have any obligation to make any award or grant
any benefits under this chapter.
     42-64.20-6. Administration. -- (a) To obtain the tax credit authorized in this chapter,
applicants shall apply to the commerce corporation board for approval of a qualified development
project for credits under this chapter. Such approval shall at a minimum require:
     (1) That the applicant has submitted a completed application as developed by the
commerce corporation in consultation with the division of taxation;
     (2) That the chief executive of the commerce corporation provide written confirmation to
the commerce corporation board (i) that the commerce corporation has reviewed the application
and any determination regarding the potential impact on the project's ability to stimulate business
development; retain and attract new business and industry to the state; create jobs, including
good-paying jobs, for its residents; assist with business, commercial, and industrial real estate
development; and generate revenues for necessary state and local governmental services; and (ii)
the total credits to be awarded to the applicant.
     (3) That the secretary of commerce provide written confirmation to the commerce
corporation board that the recommendation of the commerce corporation is consistent with the
purposes of this chapter; and
     (4) That the director of the office of management and budget provide (i) written
confirmation to the commerce corporation board that the total credits recommended by the
commerce corporation do not exceed the existing and anticipated revenue capacity of the state
and its funding commitment described in 42-64.20-7; and (ii) an analysis of the fiscal impact, if
any, in the year of application and any subsequent year. Such determination shall be made in a
timely manner.
     (b) As the commerce corporation board determines whether to grant credits under this
chapter, it shall consider the purposes for which this chapter is established, which include (but are
not necessarily limited to) the following: (i) to create jobs with an emphasis on jobs that pay at
least the most recent state median wage as defined by the Department of Labor and Training; and
(ii) to spur economic growth and new development in Rhode Island.
     (c) To claim a tax credit authorized by the board of the commerce corporation, applicants
shall apply to the commerce corporation for a certification that the project has met all
requirements of this chapter and any additional requirements set by the commerce corporation
subsequent to the time the qualified development project is placed in service. The commerce
corporation shall issue to the applicant a certification or a written response detailing any
deficiencies precluding certification. The commerce corporation may deny certification, or may
revoke the delivery of tax credits if the project does not meet all requirements of this chapter and
any additional requirements set by the commerce corporation.
     (d) Upon issuance of a certification by the commerce corporation under subsection (c) of
this section, the division of taxation shall, on behalf of the State of Rhode Island, issue tax credit
certificates equaling one hundred percent (100%) of the tax credits approved by the commerce
corporation.
     (e) In the event that tax credits or a portion of tax credits are revoked by the commerce
corporation and such tax credits have been transferred or assigned, the commerce corporation will
pursue its recapture rights and remedies against the applicant of the tax credits who shall be liable
to repay to the commerce corporation the face value of all tax credits assigned or transferred, and
all fees paid by the applicant shall be deemed forfeited. No redress shall be sought against
assignees or transferees of such tax credits provided the tax credits were acquired by way of an
arms-length transaction, for value, and without notice of violation, fraud or misrepresentation.
     (f) The commerce corporation and division of taxation shall promulgate such rules and
regulations as are necessary to carry out the intent and purpose and implementation of the
responsibilities of each under this chapter.
     42-64.20-7. Rebuild Rhode Island tax credit fund. -- There is hereby established at the
commerce corporation a restricted account known as the rebuild Rhode Island tax credit fund (the
"fund") in which all amounts appropriated for the redemption and/or reimbursement of tax credits
under this chapter shall be deposited. The Fund shall be used to pay for the redemption of tax
credits or reimbursement to the state for tax credits applied against a taxpayer's liability. The
Fund shall be exempt from attachment, levy or any other process at law or in equity. The director
of the department of revenue shall make a requisition to the commerce corporation for funding
during any fiscal year as may be necessary to pay for the redemption of tax credits presented for
redemption or to reimburse the state for tax credits applied against a taxpayer's tax liability. The
commerce corporation shall pay from the Fund such amounts as requested by the director of the
department of revenue necessary for redemption or reimbursement in relation to tax credits
granted under this chapter.
     42-64.20-8. Program integrity. -- (a) Program integrity being of paramount importance,
the commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     (b) The commerce corporation shall adopt implementation guidelines, directives, criteria,
and rules and regulations pursuant to § 42-35-3 of the general laws, as are necessary to implement
this chapter, including, but not limited to: examples of the enumeration of specific targeted
industries; specific delineation of incentive areas; the determination of additional limits; the
promulgation of procedures and forms necessary to apply for a tax credit, including the
enumeration of the certification procedures; the allocation of new tax credits in consultation with
the executive office of commerce, division of taxation and department of administration; and
provisions for tax credit applicants to be charged an initial application fee, and ongoing service
fees, to cover the administrative costs related to the tax credit.
     42-64.20-9. Reporting requirements. -- (a) By August 1st of each year, each applicant
receiving credits under this chapter shall report to the commerce corporation and the division of
taxation the following information:
     (1) The number of total full-time employees employed at the development;
     (2) The total project cost;
     (3) The total cost of materials or products purchased from Rhode Island businesses; and
     (4) Such other reasonable information deemed necessary by the secretary of commerce.
     (b) By September 1, 2016 and each year thereafter, the commerce corporation shall report
the name, address, and amount of tax credit for each credit recipient during the previous state
fiscal year to the governor, the speaker of the house of representatives, the president of the senate,
and the chairpersons of the house and senate finance committees, the house and senate fiscal
advisors, and the department of revenue. Such report shall include any determination regarding
the potential impact on an approved qualified development project's ability to stimulate business
development; retain and attract new business and industry to the state; create good-paying jobs
for its residents; assist with business, commercial, and industrial real estate development; and
generate revenues for necessary state and local governmental services.
     (c) By October 1, 2016 and each year thereafter, the commerce corporation shall report
the total number of approved projects, project costs, and associated amount of approved tax
credits approved during the prior fiscal year. This report shall be available to the public for
inspection by any person and shall be published by the commerce corporation on its website and
by the secretary of commerce on the executive office of commerce website.
     (d) By October 1st of each year the division of taxation shall report the name, address,
and amount of tax credit received for each credit recipient during the previous state fiscal year to
the governor, the chairpersons of the house and senate finance committees, the house and senate
fiscal advisors, and the department of labor and training.
     (e) By November 1st of each year the division of taxation shall report in the aggregate the
information required under subsection 42-64.20-9(a). 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.
     42-64.20-10. Sunset. -- No credits shall be authorized to be reserved pursuant to this
chapter after December 31, 2018.
     SECTION 4. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.21
RHODE ISLAND TAX INCREMENT FINANCING
     42-64.21-1. Short title. -- This act shall be known and may be cited as the "Rhode Island
Tax Increment Financing Act of 2015."
     42-64.21-2. Legislative findings. -- (a) It is hereby found and declared that due to long-
term and short-term stagnant or declining economic trends in Rhode Island, businesses in the
state have found it difficult to make investments that would stimulate economic activity and
create new jobs for the citizens of the state. Moreover, such economic trends have caused
business closures or out-of-state business relocations, while other out-of-state businesses are
deterred from relocating to this state. This situation has contributed to a high rate of
unemployment in the state. Consequently, a need exists to promote the retention and expansion of
existing jobs, stimulate the creation of new jobs, attract new business and industry to the state,
and stimulate growth in real estate developments and/or businesses that are prepared to make
meaningful investment and foster job creation in Rhode Island.
     (b) Through the establishment of a tax increment financing program, Rhode Island can
take steps to stimulate business development; retain and attract new business and industry to the
state; create good-paying jobs for its residents; assist with business, commercial, and industrial
real estate development; and generate revenues for necessary state and local governmental
services.
     42-64.21-3. Definitions. -- as used in this chapter:
     (1) "Applicant" means a developer proposing to enter into a tax increment financing
agreement under this chapter.
     (2) "Commerce corporation" means the Rhode Island commerce corporation established
pursuant to general laws § 42-64-1 et. seq.
     (3) "Developer" means a person, firm, corporation, partnership, association, political
subdivision, or other entity that proposes to divide, divides, or causes to be divided real property
into a subdivision or proposes to build, or builds a building or buildings or otherwise improves
land or existing structures, which division, building, or improvement qualifies for benefits under
this chapter.
      (4) "Hope Community" means a municipality for which the five (5) year average
percentage of families with income below the federal poverty level exceeds the state five (5) year
average percentage, both most recently reported by the U.S. Department of Commerce, Bureau of
the Census.
     (5) "Eligible revenue" means the incremental revenues set forth in § 42-64.21-5 of this
chapter.
     (6) "Incremental" means (i) net new revenue to the State of Rhode Island as defined by
the commerce corporation, in consultation with the department of revenue as established in
Chapter 42-142 of the general laws, or (ii) existing revenue at substantial risk of loss to the State
of Rhode Island as defined by the commerce corporation in consultation with the department of
revenue.
     (7) "Project area" means land or lands under common ownership or control as certified by
the commerce corporation.
     (8) "Project financing gap" means:
     (i) The part of the total project cost that remains to be financed after all other sources of
capital have been accounted for, including, but not limited to, developer-contributed capital,
which shall be defined through rules and regulations promulgated by the commerce corporation;
or
     (ii) The amount of funds that the state may invest in a project to gain a competitive
advantage over a viable and comparable location in another state by means described in this
chapter.
     (9) "Qualified development project" means a specific construction project or
improvement, including lands, buildings, improvements, real and personal property or any
interest therein, including lands under water, riparian rights, space rights and air rights, acquired,
owned, leased, developed or redeveloped, constructed, reconstructed, rehabilitated or improved,
undertaken by a developer, owner or tenant, or both, within a specific geographic area, meeting
the requirements of this chapter, as set forth in an application made to the commerce corporation.
     (10) "Qualifying TIF area" shall mean an area containing a qualified development project
identified by the commerce corporation as a priority because of its potential to generate, preserve
or otherwise enhance jobs or its potential to produce, preserve or otherwise enhance housing
units. The commerce corporation shall take into account the following factors in determining
whether a qualified development project is a priority:
     (i) Generation or preservation of manufacturing jobs;
     (ii) Promotion of targeted industries;
     (iii) Location in a port or airport district;
     (iv) Location in an industrial or research park;
     (v) Location in a transit oriented development area;
     (vi) Location in a hope community;
     (vii) Location in an area designated by a municipality as a redevelopment area under §
45-32-4 of the general laws; and
     (viii) Location in an area located within land approved for closure under any federal
commission on base realignment and closure action.
     (11) "Revenue increment base" means the amounts of all eligible revenues from sources
within the qualifying TIF area in the calendar year preceding the year in which the TIF agreement
is executed, as certified by the division of taxation.
     (12) "TIF agreement" means an agreement between the commerce corporation and a
developer, under which, in exchange for the benefits of the funding derived from qualification
under this chapter, the developer agrees to perform any work or undertaking necessary for a
qualified development project, including the clearance, development or redevelopment,
construction, or rehabilitation of any structure or improvement of commercial, industrial, or
residential property; public infrastructure; preexisting municipally-owned stadium of 10,000 seats
or greater; or utilities within a qualifying TIF area.
     (13) "TIF payment" means reimbursement of all or a portion of the project financing gap
of a qualified development project from the division of taxation as provided under this chapter.
     (14) "Targeted industry" means any advanced, promising or otherwise prioritized
industry identified in the economic development vision and policy promulgated pursuant General
Laws § 42-64.17-1 or, until such time as any such economic development vision and policy is
promulgated, as identified by the commerce corporation.
     (15) "Transit oriented development area" means an area in proximity to transit
infrastructure that will be further defined by regulation of the commerce corporation in
consultation with the Rhode Island department of transportation.
     42-64.21-4. TIF program. -- The commerce corporation shall establish a tax increment
financing program for the purpose of encouraging qualified development projects in qualifying
TIF areas.
     42-64.21-5. Financing. -- (a) Up to the limits established in subsection (b) of this section
and in accordance with a TIF agreement, the division of taxation shall pay to the developer
incremental state revenues directly realized from projects or businesses operating in the
qualifying TIF area from the taxes assessed and collected under chapters 11, 13, 14, 17, 18, 19,
and 30 of Title 44 of the general laws or realized from such venue ticket sales or parking taxes as
may be established and levied under state law.
     (b) Up to 75 percent of the projected annual incremental revenues may be allocated under
a TIF agreement. The incremental revenue for the revenues listed in subsection (a) of this section
shall be calculated as the difference between the amount collected in any fiscal year from any
eligible revenue source included in the TIF agreement, less the revenue increment base for that
eligible revenue.
     (c) The division of taxation is hereby authorized and empowered to segregate the annual
incremental revenues allocated under a TIF agreement and transfer such amounts to the general
treasurer for deposit in a restricted account known as the TIF fund. The TIF fund shall be used
solely to pay for the incentives granted under this chapter. The director of the department of
revenue shall annually determine if a surplus exists in the TIF fund over amounts necessary to
fund incentives under this chapter in a fiscal year and may authorize the general treasurer to
transfer any surplus to the general fund. The unexpended balance of such sum of money received
and appropriated for the TIF fund remaining in the treasury at the close of each fiscal year, shall
be continued to and is hereby annually appropriated for the same account for the ensuing year.
     (d) Under conditions defined by the commerce corporation and in consultation with the
department of revenue, those taxes eligible for inclusion in this TIF program may instead be
exempted up to the levels permitted by this act in cases of significant taxpayers. Such significant
taxpayers may instead be required to contribute payments in lieu of taxes (PILOTs) into a
dedicated fund established by the commerce corporation. Such payments shall be up to 75 percent
of the amount that would otherwise be due to the state in the form of taxation as per the
provisions of this statute. Such dedicated funds must be used for the purposes described in this
act. The commerce corporation may issue revenue bonds secured by this dedicated fund. Such
bonds shall not be a general obligation of the state.
     (e) The commerce corporation shall promulgate an application form and procedure for
the program.
     42-64.21-6. Agreements permitted. -- (a) The commerce corporation is authorized to
enter into a TIF agreement with a developer for any qualified development project located within
a qualifying TIF area. The TIF agreement between the commerce corporation and the developer
shall contain a provision acknowledging that the benefits of said agreement, with the exception of
42-64.21-5 (d) of this chapter, are subject to such annual appropriation.
     (b) The decision whether or not to enter into a TIF agreement is solely within the
discretion of the commerce corporation. However, to enter into an agreement with the commerce
corporation as authorized in this chapter, applicants shall apply:
     (1) To the commerce corporation for approval of the proposed project. Such approval
shall require:
     (i) That the applicant has submitted a completed application as developed by the
commerce corporation;
     (ii) That the chief executive officer of the commerce corporation provide written
confirmation to the commerce corporation board that (A) the commerce corporation has reviewed
the application and any determination regarding the potential impact on the project's ability to
promote the retention and expansion of existing jobs, stimulate the creation of new jobs,
including good-paying jobs, attract new business and industry to the state, and stimulate growth
in real estate developments and/or businesses that are prepared to make meaningful investment
and foster job creation in the state; and (B) the length of the TIF agreement and the percentage of
incremental revenues to be allocated under the TIF agreement.
     (iii) That the secretary of commerce provide written confirmation to the commerce
corporation board that the recommendation of the commerce corporation is consistent with the
purposes of this chapter.
     (c) A developer that has entered into a TIF agreement with the commerce corporation
pursuant to this section may, upon notice to and consent of the corporation, pledge and assign as
security for any loan, any or all of its right, title and interest in and to the TIF agreement and in
the TIF payments due thereunder, and the right to receive same, along with the rights and
remedies provided to the developer under such agreement. Any such assignment shall be an
absolute assignment for all purposes, including the federal bankruptcy code.
     (d) Any pledge of TIF payments made by the developer shall be valid and binding from
the time when the pledge is made and filed in the records of the commerce corporation. The TIF
agreement and payments so pledged and thereafter received by the developer shall immediately
be subject to the lien of the pledge without any physical delivery thereof or further act, and the
lien of any pledge shall be valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against the developer irrespective of whether the parties have notice
thereof.
     (e) The commerce corporation shall be entitled to impose an application fee and impose
other charges upon developers associated with the review of a project and the administration of
the program.
     (f) Maximum agreement amount. In no event shall the amount of the reimbursements
under a TIF agreement exceed 30 percent of the total cost of the project and provided further, that
the commerce corporation may exempt public infrastructure, a preexisting municipally-owned
stadium of 10,000 seats or greater, or utilities from said 30 percent cap.
     42-64.21-7. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.21-8. Reporting requirements. -- (a) By September 1, 2016 and each year
thereafter, the commerce corporation shall report the name, address, and incentive amount of each
agreement entered into during the previous state fiscal year to the division of taxation.
     (b) By December 1, 2016 and each year thereafter, the division of taxation shall provide
the governor with the sum, if any, to be appropriated to fund the program. The governor shall
submit to the general assembly printed copies of a budget including the total of the sums, if any,
as part of the governor's budget required to be appropriated for the program created under this
chapter.
     (c) By January 1, 2017 and each year thereafter, the commerce corporation shall report to
the governor, the speaker of the house, the president of the senate, the chairpersons of the house
and senate finance committees, and the house and senate fiscal advisors the address and incentive
amount of each agreement entered into during the previous state fiscal year as well as any
determination regarding the measurable impact of each and every agreement on the retention and
expansion of existing jobs, stimulation of the creation of new jobs, attraction of new business and
industry to the state, and stimulation of growth in real estate developments and/or businesses that
are prepared to make meaningful investment and foster job creation in the state.
     42-64.21-9. Sunset. -- The commerce corporation shall enter into no agreement under
this chapter after December 31, 2018.
     SECTION 5. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.22
TAX STABILIZATION INCENTIVE
     42-64.22-1. Findings and declarations. -- The general assembly finds and declares:
     (a) The general assembly seeks to enact several economic stimulus laws to assist Rhode
Island businesses and municipalities, including legislation providing incentives to encourage
economic and real estate development and to create jobs throughout this state.
     (b) In order to encourage this economic growth, the general assembly seeks to enhance
and strengthen several of the current statutes governing economic development in this state. The
general assembly's goal is to create an economic stimulus program to promote development and
growth and address the economic challenges currently impacting the State and local
municipalities.
     42-64.22-2. Definitions. -- As used in this chapter:
     (1) "Adaptive reuse" means the conversion of an existing structure from the use for which
it was constructed to a new use by maintaining elements of the structure and adapting such
elements to a new use.
     (2) "Affiliate" means an entity that directly or indirectly controls, is under common
control with, or is controlled by the business. Control exists in all cases in which the entity is a
member of a controlled group of corporations as defined pursuant to § 1563 of the Internal
Revenue Code of 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of
organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the
Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and
convincing evidence, as determined by the tax administrator, that control exists in situations
involving lesser percentages of ownership than required by those statutes. An affiliate of a
business may contribute to meeting either the capital investment or full-time employee
requirements of a business that applies for a credit under this chapter.
     (3) "Affordable housing" means housing for sale or rent with combined rental costs or
combined mortgage loan debt service, property taxes, and required insurance that do not exceed
thirty percent (30%) of the gross annual income of a household earning up to eighty percent
(80%) of the Providence-Fall River, RI-MA metropolitan area median income, as defined
annually by the United States Department of Housing and Urban Development.
     (4) "Applicant" means a qualifying community or hope community applying for
incentives under this chapter.
     (5) "Business" means a corporation as defined in general laws § 44-11-1(4), or a
partnership, an S corporation, a non-profit corporation, a sole proprietorship, or a limited liability
corporation. A business shall include an affiliate of the business if that business applies for a tax
stabilization agreement based upon any capital investment made by an affiliate.
     (6) "Capital investment" in a qualified development project means expenses by a business
or any affiliate of the business incurred after application for:
     (i) Site preparation and construction, repair, renovation, improvement, equipping, or
furnishing on real property or of a building, structure, facility, or improvement to real property;
and/or
     (ii) Obtaining and installing furnishings and machinery, apparatus, or equipment,
including but not limited to material goods for the operation of a business on real property or in a
building, structure, facility, or improvement to real property.
     In addition to the foregoing, if a business acquires or leases a qualified business facility,
the capital investment made or acquired by the seller or owner, as the case may be, if pertaining
primarily to the premises of the qualified business facility, shall be considered a capital
investment by the business and, if pertaining generally to the qualified business facility being
acquired or leased, shall be allocated to the premises of the qualified business facility on the basis
of the gross leasable area of the premises in relation to the total gross leasable area in the
qualified business facility. The capital investment described herein may include any capital
investment made or acquired within twenty-four (24) months prior to the date of application so
long as the amount of capital investment made or acquired by the business, any affiliate of the
business, or any owner after the date of application equals at least fifty percent (50%) of the
amount of capital investment, allocated to the premises of the qualified business facility being
acquired or leased on the basis of the gross leasable area of such premises in relation to the total
gross leasable area in the qualified business facility made or acquired prior to the date of
application.
     (7) "Certified historic structure" means a property which is located in the state of Rhode
Island and is
     (i) Listed individually on the national register of historic places; or
     (ii) Listed individually in the state register of historic places; or
     (iii) Located in a registered historic district and certified by either the commission or
Secretary of the Interior as being of historic significance to the district.
     (8) "Commerce corporation" means the Rhode Island commerce corporation established
pursuant to general laws § 42-64-1 et. seq.
     (9) "Commercial" means non-residential development.
     (10) "Developer" means a person, firm, corporation, partnership, association, political
subdivision, or other entity that proposes to divide, divides, or causes to be divided real property
into a subdivision or proposes to build, or builds a building or buildings or otherwise improves
land or existing structures, which division, building, or improvement qualifies for benefits under
this chapter.
     (11) "Development" means the improvement of land through the carrying out of building,
engineering, or other operations in, on, over, or under land, or the making of any material change
in the use of any buildings or land for the purposes of accommodating land uses.
     (12) "Eligibility period" means the period in which a qualified community and/or Hope
Community may apply for reimbursement under this chapter. The eligibility period shall be
subject to the term defined in the qualifying tax stabilization agreement granted by said
community. The amounts subject to reimbursement shall cease upon any termination or cessation
of the underlying qualified tax stabilization agreement.
     (13) "Forgone tax revenue" means the amount of revenue that a municipality would have
received from a qualified development project had a tax stabilization agreement not been in place,
less the amount of revenue the municipality would be expected to receive from that qualified
development project with a tax stabilization agreement in place.
     (14) "Full-time job" means a position for which a person is employed by a business for
consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other
standard of service generally accepted by custom or practice as full-time employment, or who is
employed by a professional employer organization pursuant to an employee leasing agreement
between the business and the professional employer organization for a minimum of thirty-five
(35) hours per week, or who renders any other standard of service generally accepted by custom
or practice as full-time employment, and whose wages are subject to withholding.
     (15) "Hope community" means a municipality for which the five (5) year average
percentage of families with income below the federal poverty level exceeds the state five (5) year
average percentage, both as most recently reported by the U.S. Department of Commerce, Bureau
of the Census.
     (16) "Project" means qualified development project as defined under subsection (16) of
this chapter.
     (17) "Project cost" means the costs incurred in connection with the qualified development
project by the applicant until the issuance of a permanent certificate of occupancy, or until such
other time specified by the commerce corporation, for a specific investment or improvement, as
defined through rules and regulations promulgated by the commerce corporation.
     (18) "Recognized historical structure" means a property which is located in the state of
Rhode Island and is commonly considered to be of historic or cultural significance as determined
by the commerce corporation in consultation with the state historic preservation officer.
     (19) "Qualifying communities" are those municipalities within the state that are not
defined as a hope community.
     (20) "Qualified development project" includes:
     (i) Rehabilitation of an existing structure where the total cost of development budget
exceeds fifty percent (50%) of adjusted basis in such a qualifying property as of the date that the
parties applied for said qualifying tax stabilization agreement; or
     (ii) Construction of a new building wherein:
     (A) The subject community has issued a tax stabilization agreement, as set forth herein
and pursuant to § 44-3-9 of the general laws as well as other applicable rules, regulations and,
procedures;
     (B) Construction commences within twelve (12) months of the subject tax stabilization
agreement being approved; and
     (C) Completion of the proposed development project occurs within thirty six (36)
months, subject to the approval of qualifying or hope communities.
     (21) "Qualifying property" means any building or structure used or intended to be used
essentially for offices or commercial enterprises or residential purposes.
     (22) "Qualifying tax stabilization agreement" are those tax stabilization agreements with
a minimum term of twelve (12) years, granted by a qualified and/or hope community in
connection with a qualifying project.
     (23) "Workforce housing" means housing for sale or rent with combined rental costs or
combined mortgage loan debt service, property taxes, and required insurance that do not exceed
thirty percent (30%) of the gross annual income of a household earning between eighty percent
(80%) and one hundred and forty percent (140%) of the Providence-Fall River, RI-MA
metropolitan area median income, as defined annually by the United States Department of
Housing and Urban Development.
     42-64.22-3. Establishment of program. -- (a) The Tax Stabilization Incentive Program
is hereby created to provide incentives to Rhode Island municipalities to enter into qualifying
property tax stabilization agreements in connection with qualifying projects set forth herein.
     (b) Under the program, qualified and Hope Communities in the state of Rhode Island that
grant qualifying tax stabilization agreements, subject to the provisions of § 44-3-9 of the Rhode
Island general laws, in connection with a qualifying project, may apply to the commerce
corporation for certification for partial reimbursement of the amount of real estate taxes and/or
personal property taxes that would have otherwise been paid had the qualified and/or hope
communities not granted said tax stabilization agreement.
     42-64.22-4. Incentives for municipalities. -- The qualifying community or hope
community grants a qualifying tax stabilization agreement in connection with a qualifying
project, upon certification by the commerce corporation and subject to availability of
appropriated funds, the commerce corporation shall provide a partial reimbursement of no more
than ten percent (10%) of the qualifying community and/or hope community's forgone tax
revenue. The qualification for reimbursement shall cease upon any termination or cessation of the
underlying tax stabilization agreement or upon exhaustion of funds appropriated pursuant to this
section.
     42-64.22-5. Eligibility requirements for qualifying communities. -- In order for a
qualifying community to be eligible to receive incentives under this chapter, in addition to the
provisions set forth herein, the tax stabilization agreement must be for a qualified development
project resulting in the creation of at least fifty (50) new full-time jobs, and the developer must
commit a capital investment of not less than ten million dollars ($10,000,000.00) towards the
project cost.
     42-64.22-6. Eligibility requirements for hope communities. -- In order for a hope
community to be eligible to receive incentives under this chapter, in addition to the provisions set
forth herein, the tax stabilization agreement must be for a qualified development project resulting
in the creation of at least twenty-five (25) new full-time jobs, and the developer must commit a
capital investment of not less than five million dollars ($5,000,000.00) towards the project cost.
     42-64.22-7. Alternative eligibility requirements. -- (a) Qualifying communities may
receive incentives under this chapter, where the tax stabilization agreement is for a qualified
development project involving an adaptive reuse of a recognized historical structure or results in
the creation of at least twenty (20) units of residential housing; provided that at least twenty
percent (20%) of the residential units are for affordable or workforce housing.
     (b) Qualifying communities may receive incentives under this chapter, where the tax
stabilization agreement is for a qualified development project involving an adaptive reuse of a
certified historic structure, if such qualified development project:
     (i) Has been certified by the state historic preservation officer that the adaptive reuse will
be consistent with the standards of the Secretary of the United States Department of the Interior
for rehabilitation; and
     (ii) Results in the creation of at least twenty (20) units of residential housing; provided
that at least twenty percent (20%) of the residential units are for affordable or workforce housing.
     (c) Hope communities may receive incentives under this chapter, where the tax
stabilization agreement for a qualified development project results in the creation of at least
twenty (20) units of residential housing.
     42-64.22-8. Reimbursement. -- The aggregate value of all reimbursements approved by
the commerce corporation pursuant to this chapter during the eligibility period shall not exceed
the lesser of ten (10%) percent of the qualifying and/or hope communities' forgone tax revenue or
annual appropriations received by the commerce corporation for the program.
     42-64.22-9. Applicability. -- The amounts subject to reimbursement under this chapter
shall apply to any real and/or personal property tax abatement provided pursuant to a tax
stabilization agreement, granted pursuant to § 44-3-9 of the general laws, after January 1, 2015.
The amounts subject to reimbursement shall also include any reduction in the then current real
property taxes and/or personal property taxes, as well as a reduction in the prospective amounts
that would be due in connection with the completion of the project.
     42-64.22-10. Approval. -- The commerce corporation's approval of reimbursement to the
qualifying or hope communities may be made in accordance with or conditional upon the
conditions set forth under § 44-3-9 of the general laws and other guidelines, criteria, and priorities
that may be adopted by the commerce corporation. In order to distribute funds under the chapter,
the commerce corporation shall enter into an agreement with the community setting forth the
terms of the reimbursements subject hereto. The commerce corporation may require communities
to provide reports and documentation regarding any reimbursements provided under this chapter.
     42-64.22-11. Restrictions. -- Nothing in this section shall be construed to interfere,
restrict or prevent any qualifying community or hope community from granting tax stabilization
agreements pursuant to § 44-3-9 of the general laws or other applicable sections of title 44 of the
general laws.
     42-64.22-12. Implementation guidelines, directives, criteria, rules, regulations. -- (a)
The commerce corporation shall establish further guidelines, directives, criteria, rules and
regulations in regards to the implementation of this chapter.
     (b) The adoption and implementation of rules and regulations shall be made pursuant to §
42-35-3 of the general laws as are necessary for the implementation of the commerce
corporation's responsibilities under this chapter.
     42-64.22-13. Program integrity. -- Program integrity being of paramount importance,
the commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.22-14. Reporting requirements. -- (a) By September 1, 2016 and each year
thereafter, the commerce corporation shall report the name, address, and amount of each
stabilization agreement entered into during the previous state fiscal year to the division of
taxation.
     (b) By December 1, 2016 and each year thereafter, the division of taxation shall provide
the governor with the sum, if any, to be appropriated to fund the program. The governor shall
submit to the general assembly printed copies of a budget including the total of the sums, if any,
as part of the governor's budget required to be appropriated for the program created under this
chapter.
     42-64.22-15. Sunset. -- The commerce corporation shall enter into no agreement under
this chapter after December 31, 2018.
     SECTION 6. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.23
FIRST WAVE CLOSING FUND
     42-64.23-1. Short title. -- This chapter shall be known as the "First Wave Closing Fund
Act."
     42-64.23-2. Legislative findings. -- The general assembly finds and declares: (a) It is
hereby found and declared that due to long-term and short-term stagnant or declining economic
trends in Rhode Island, businesses in the state have found it difficult to make investments that
would stimulate economic activity and create new jobs for the citizens of the state. Moreover,
such economic trends have caused business closures or out-of-state business relocations, while
other out-of-state businesses are deterred from relocating to this state. This situation has
contributed to a high rate of unemployment in the state. Consequently, a need exists to promote
the retention and expansion of existing jobs, stimulate the creation of new jobs, attract new
business and industry to the state, and stimulate growth in real estate developments and/or
businesses that are prepared to make meaningful investments and foster job creation in Rhode
Island.
     (b) Through the establishment of a first wave closing fund, Rhode Island can take steps to
stimulate business development; retain and attract new business and industry to the state; create
good-paying jobs for its residents; assist with business, commercial, and industrial real estate
development; and generate revenues for necessary state and local governmental services.
     42-64.23-3. Definitions. -- As used in this chapter:
     (1) "Affiliate" means an entity that directly or indirectly controls, is under common
control with, or is controlled by the business. Control exists in all cases in which the entity is a
member of a controlled group of corporations as defined pursuant to § 1563 of the Internal
Revenue Code of 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of
organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the
Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and
convincing evidence, as determined by the commerce corporation in its sole discretion, that
control exists in situations involving lesser percentages of ownership than required by those
statutes. An affiliate of a business may contribute to meeting full-time employee requirements of
a business that applies for benefits under this chapter.
     (2) "Applicant" means a business applying for assistance under this chapter.
     (3) "Business" means a corporation as defined in general laws § 44-11-1(4), or is a
partnership, an S corporation, a non-profit corporation, a sole proprietorship or a limited liability
company.
     (4) "Investment" in a development project means expenses by a business or any affiliate
incurred after application including, but without limitation, for:
     (i) Site preparation and construction, repair, renovation, improvement, equipping, or
furnishing on real property or of a building, structure, facility, or improvement to real property;
and/or
     (ii) Obtaining and installing furnishings and machinery, apparatus, or equipment,
including but not limited to material goods for the operation of a business on real property or in a
building, structure, facility, or improvement to real property.
     (5) "Commerce corporation" means the Rhode Island commerce corporation established
by general laws § 42-64-1 et. seq.
     (6) "Developer" means a person, firm, corporation, partnership, association, political
subdivision, or other entity that proposes to divide, divides, or causes to be divided real property
into a subdivision or proposes to build, or builds a building or buildings or otherwise improves
land or existing structures, which division, building, or improvement of land qualifies for benefits
under this chapter.
     (7) "Development" means the improvement of land through the carrying out of building,
engineering, or other operations in, on, over, or under land, or the making of any material change
in the use of any buildings or land for the purposes of accommodating land uses.
     (8) "Development project" means a real estate based development or other investment.
     (9) "Full-time employee" means a person who is employed by a business for
consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other
standard of service generally accepted by custom or practice as full-time employment, or who is
employed by a professional employer organization pursuant to an employee leasing agreement
between the business and the professional employer organization for a minimum of thirty-five
(35) hours per week, or who renders any other standard of service generally accepted by custom
or practice as full-time employment, and whose wages are subject to withholding.
     (10) "Project cost" means the costs incurred in connection with a project by an applicant
until the issuance of a permanent certificate of occupancy, or until such other time specified by
the commerce corporation.
     (11) "Project financing gap" means
     (i) The part of the total project cost that remains to be financed after all other sources of
capital have been accounted for (such sources will include, but not be limited to, developer-
contributed capital), which shall be defined through rules and regulations promulgated by the
commerce corporation, or
     (ii) The amount of funds that the state may invest in a project to gain a competitive
advantage over a viable and comparable location in another state by means described in this
chapter.
     42-64.23-4. Establishment of fund; Purposes; Composition. -- (a) There is hereby
established the first wave closing fund (the "fund") to be administered by the commerce
corporation as set forth in this chapter.
     (b) The purpose of the fund is to provide lynchpin financing unavailable from other
sources, bringing to closure transactions that are of a critical or catalytic nature for Rhode Island's
economy and communities.
     (c) The fund shall consist of:
     (1) Money appropriated in the state budget to the fund;
     (2) Money made available to the fund through federal programs or private contributions;
     (3) Repayments of principal and interest from loans made from the fund;
     (4) Proceeds from the sale, disposition, lease, or rental of collateral related to financial
assistance provided under this chapter;
     (5) Application or other fees paid to the fund to process requests for financial assistance;
     (6) Recovery made by the commerce corporation, or the sale of an appreciated asset in
which the commerce corporation has acquired an interest under this chapter; and
     (7) Any other money made available to the fund.
     42-64.23-5. Powers of commerce corporation. -- (a) The commerce corporation board
shall promulgate regulations setting forth criteria for approving awards under the fund and such
criteria shall ensure that awards from the fund are economically advantageous to the citizens of
Rhode Island. To qualify for the benefits of this chapter, an applicant shall submit an application
to the commerce corporation. Upon receipt of a proper application from an applicant, the
commerce corporation board may approve a loan, a conditional grant or other investment. In
making each award, the commerce corporation shall consider, among other factors, the:
     (1) Economic impact of the project, including costs and benefits to the state;
     (2) The amount of the project financing gap;
     (3) Strategic importance of the project to the state, region, or locality;
     (4) Quality and number of jobs produced;
     (5) Quality of industry and project; and
     (6) Competitive offers regarding the project from another state or country.
     (b) The proceeds of the funding approved by the commerce corporation under this
chapter may be used for (1) working capital, equipment, furnishings, and fixtures; (2) the
construction, rehabilitation, and purchase of real property; (3) as permanent financing; or (4)
such other purposes that the commerce corporation approves.
     (c) The commerce corporation shall have no obligation to make any award or grant any
benefits under this chapter.
     (d) The commerce corporation shall publish a report on the fund at the end of each fiscal
year. The report shall contain information on the commitment, disbursement, and use of funds
allocated under the fund. The report shall also, to the extent practicable, track the economic
impact of projects that have been completed using the fund. The report is due no later than sixty
(60) days after the end of the fiscal year, and shall be provided to the speaker of the house of
representatives and the president of the senate.
     42-64.23-6. Implementation guidelines, directives, criteria, rules, regulations. -- The
commerce corporation may adopt implementation guidelines, directives, criteria, rules and
regulations pursuant to § 42-35-3 of the General Laws as are necessary for the implementation
and administration of the fund.
     42-64.23-7. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.23-8. Sunset. -- No financing shall be authorized to be reserved pursuant to this
chapter after December 31, 2018.
     SECTION 7. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.24
I-195 REDEVELOPMENT PROJECT FUND
     42-64.24-1. Short title. -- This chapter shall be known as the "I-195 Redevelopment
Project Fund Act."
     42-64.24-2. Legislative findings. -- The general assembly finds and declares:
     (a) That due to global economic trends, businesses in Rhode Island have found it difficult
to invest in development projects and other significant capital investments in and surrounding the
I-195 land within the city of Providence. Investment in such projects would stimulate economic
activity, facilitate the creation of new jobs for the citizens of the state and promote economic
growth and development.
     (b) Through the establishment of the I-195 redevelopment project fund, Rhode Island can
take steps to attract and grow new businesses and industries to and for the state; create good-
paying jobs for its residents; assist with business and real estate development; and generate
revenues for necessary state and local governmental services.
     42-64.24-3. Definitions. -- As used in this act:
     (1) "Applicant" means a developer or occupant applying for a loan or conditional loan
under this chapter.
     (2) "Business" means a corporation as defined in general laws § 44-11-1(4), or is a
partnership, an S corporation, a non-profit corporation, sole proprietorship or a limited liability
corporation.
     (3) "Capital investment" in a redevelopment project means costs or expenses by a
business or any affiliate of the business incurred after application for:
     (i) Site preparation and construction, repair, renovation, improvement, equipping, or
furnishing on real property or of a building, structure, facility, or improvement to real property;
     (ii) Obtaining and installing furnishings and machinery, apparatus, or equipment,
including but not limited to material goods for the operation of a business on real property or in a
building, structure, facility, or improvement to real property.
     (4) "Commission" means the I-195 district commission.
     (5) "Developer" means a person, firm, corporation, partnership, association, political
subdivision, or other entity that proposes to divide, divides, or causes to be divided real property
into a subdivision or proposes to build, or builds a building or buildings or otherwise improves
land or existing structures, which division, building, or improvement of land qualifies for benefits
under this chapter.
     (6) "I-195 land" means the surplus land within the city of Providence owned by the I-195
district commission and the area within a one-quarter mile radius of the outermost boundary of
said surplus land as further delineated by regulation of the commission.
     (7) "Occupant" means a business as a tenant, owner, or joint venture partner, occupying
space pursuant to a lease or other occupancy agreement on the I-195 land or a project developed
on such land.
     (8) "Personal property" means furniture, fixtures and equipment, except automobiles,
trucks or other motor vehicles, or materials that otherwise are depreciable and have a useful life
of one year or more, that are utilized for the redevelopment project for any given phase of the
redevelopment project inclusive of a period not to exceed six (6) months after receipt of a
certificate of occupancy for the given phase of the development.
     (9) "Project cost" means the costs incurred in connection with a project by an applicant
until the issuance of a permanent certificate of occupancy, or until such other time specified by
the commerce corporation.
     (10) "Project financing gap" means
     (i) the part of the total project cost that remains to be financed after all other sources of
capital have been accounted for (such sources will include, but not be limited to, developer-
contributed capital), which shall be defined through rules and regulations promulgated by the
commerce corporation, or
     (ii) the amount of funds that the state may invest in a project to gain a competitive
advantage over a viable and comparable location in another state by means described in this
chapter.
     42-64.24-4. Establishment of the fund uses and composition. -- (a) The I-195
Redevelopment Project Fund (the "fund") is hereby established under the jurisdiction of and shall
be administered by the commission in order to further the goals set forth in Chapter 42-64.14 of
the general laws and to promote, among other purposes, the development and attraction of
advanced industries and innovation on and near the I-195 land in order to enhance Rhode Island's
economic vitality.
     (b) The uses of the fund include but are not limited to:
     (1) Contributing to capital investment requirements for anchor institutions or other
catalytic project components chosen in accordance with a vision developed, by the commission
for location on the I-195 land, adjacent and proximate parcels;
     (2) Filling project financing gaps for real estate projects on the I-195 land, adjacent and
proximate parcels;
     (3) Financing land acquisition in areas adjacent to and proximate to the I-195 land
including street rights of way and abandonment costs;
     (4) Financing public infrastructure and public facilities to support or enhance
development including, but not limited to, transportation, parks, greenways, performance venues,
meeting facilities, community facilities, and public safety precincts.
     (c) This statute shall not be construed as authorizing expenditure from this fund for the
purpose of financing a stadium or other such facility built primarily for sporting activity.
     (d) The fund shall consist of:
     (1) Money appropriated in the state budget to the fund;
     (2) Money made available to the Fund through federal programs or private contributions;
     (3) Repayments of principal and interest from loans made from the fund;
     (4) Proceeds from the sale, disposition, lease, or rental of collateral related to financial
assistance provided under this chapter;
     (5) Application or other fees paid to the fund to process requests for financial assistance;
     (6) Recovery made by the commission or on the sale of an appreciated asset in which the
commission has acquired an interest under this chapter; and
     (7) Any other money made available to the fund.
     42-64.24-5. Assistance, Powers of commission, reports. -- (a) An applicant seeking
assistance under this chapter shall submit a request to the commission pursuant to an application
procedure prescribed by the commission.
     (b) Any approval for funding under this chapter may only be granted by the commission
and shall require the concurrence of the secretary of commerce.
     (c) The commission may set the terms and conditions for assistance under this chapter.
Except as provided in subsection (b) of this section, any decision to grant or deny such assistance
lies within the sole discretion of the commission.
     (d) The commission shall publish a report on the fund at the end of each fiscal year. The
report shall contain information on the commitment, disbursement, and use of funds allocated
under the fund. The report shall also, to the extent practicable, track the economic impact of
projects that have been completed using the fund. The report is due no later than sixty (60) days
after the end of the fiscal year, and shall be provided to the speaker of the house of
representatives, the president of the senate and the secretary of commerce.
     42-64.24-6. Implementation guidelines, directives, criteria, rules, regulations. -- The
commission shall adopt implementation guidelines, directives, criteria, rules and regulations
pursuant to § 42-35-3 of the general laws as are necessary for the implementation of the
commission's responsibilities under this chapter and impose such fees and charges as are
necessary to pay for the administration and implementation of this program.
     42-64.24-7. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.24-8. Sunset. -- No funding, credits, or incentives shall be authorized or authorized
to be reserved pursuant to this chapter after December 31, 2018.
     SECTION 8. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.25
SMALL BUSINESS ASSISTANCE PROGRAM
     42-64.25-1. Short title. -- This chapter shall be known as the "Small Business Assistance
Program Act."
     42-64.25-2. Statement of intent. -- The general assembly hereby finds and declares that
small businesses are the economic backbone of the state and the source of a majority of new jobs.
The general assembly further finds that too many such businesses often have difficulty obtaining
capital from traditional banking organizations to start up, improve or expand operations.
Providing greater access to capital would enable the formation and expansion of small businesses
across the state and provide job opportunities to the state's citizens. The purpose of this act is to
assist small businesses that encounter difficulty in obtaining adequate credit or adequate terms for
such credit. Among the small businesses that this act aims to assist are minority business
enterprises and women-owned business enterprises.
     42-64.25-3. Establishment of small business capital access fund. -- The small business
capital access fund program is hereby created within the Rhode Island commerce corporation.
The commerce corporation is authorized, within available appropriations, to provide direct
assistance and/or partner with lending organizations to provide funding for loans to small
businesses located in Rhode Island. As used in this chapter, a "small business" means a business
that is resident in Rhode Island and employs two hundred (200) or fewer persons. The commerce
corporation is authorized, from time to time, to establish rules and regulations for the
administration of the program.
     42-64.25-4. Qualifications of lending organizations. -- The commerce corporation may
elect to partner with an outside lending organization and authorize that organization to receive
and administer program funds. Before partnering with an outside lending organization, the
commerce corporation may identify eligible lending organizations through one or more
competitive statewide or regional solicitations.
     42-64.25-5. Program loan structures. -- Loan programs shall be structured by the
commerce corporation that may include, but not be limited to, the following programs: (a)
financing programs for companies that require additional capital outside of conventional senior
debt or equity financing channels; (b) direct lending of subordinated and mezzanine debt; (c)
collateral support in the form of credit enhancement; (d) pledge of cash collateral accounts to
lending institutions to enhance collateral coverage of individual loans; and (e) technical assistance
to small businesses.
     42-64.25-6. Micro-loan allocation. -- Notwithstanding anything to the contrary in this
chapter, ten percent (10%) of program funds will be allocated to "micro loans" with a principal
amount between two thousand dollars and twenty-five thousand dollars. Micro loans will be
administered by lending organizations, which will be selected by the commerce corporation on a
competitive basis and shall have experience in providing technical and financial assistance to
microenterprises.
     42-64.25-7. Lending organization reports. -- Any participating lending organizations
shall submit to the commerce corporation annual reports stating the following: the number of
program loans made; the amount of program funding used for loans; the use of loan proceeds by
the borrowers; the number of jobs created or retained; a description of the economic development
generated; the status of each outstanding loan; and such other information as the commerce
corporation may require.
     42-64.25-8. Audits. -- The commerce corporation may conduct audits of any
participating lending organization in order to ensure compliance with the provisions of this
chapter, any regulations promulgated with respect thereto and agreements between the lending
organizations and the commerce corporation on all aspects of the use of program funds and
program loan transactions. In the event that the commerce corporation finds noncompliance, the
commerce corporation may terminate the lending organization's participation in the program.
     42-64.25-9. Termination. -- Upon termination of a lending organization's participation in
the program, the lending organization shall return to the commerce corporation, promptly after its
demand therefor, an accounting of all program funds received by the lending organization,
including a transfer of all currently outstanding loans that were made using program funds.
Notwithstanding such termination, the lending organization shall remain liable to the commerce
corporation with respect to any unpaid amount due from the lending organization pursuant to the
terms of the commerce corporation's provision of funds to the lending organization.
     42-64.25-10. Discretion. -- The commerce corporation shall have no obligation to grant
any loan under this chapter or provide any funding to a lending organization.
     42-64.25-11. Limitations. -- (a) The commerce corporation shall not grant any financial
commitment from state program funds to any applicant in excess of seven hundred and fifty
thousand ($750,000) dollars under this program.
     (b) The commerce corporation shall have no authority to award grants except to technical
assistance providers under this program.
     42-64.25-12. Reporting requirements. -- The commerce corporation shall publish a
report on the small business capital access fund at the end of each fiscal year. The report shall
contain information on the commitment, disbursement, and use of funds allocated under the fund.
The report shall also, to the extent practicable, track the economic impact of projects that have
been completed using the fund. The report is due no later than sixty (60) days after the end of the
fiscal year, and shall be provided to the speaker of the house of representatives and the president
of the senate.
     42-64.25-13. Program integrity. -- Program integrity being of paramount importance,
the commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.25-14. Sunset. -- No grants, funding, or incentives shall be authorized pursuant to
this chapter after December 31, 2018.
     SECTION 9. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.26
STAY INVESTED IN RI WAVEMAKER FELLOWSHIP
     42-64.26-1. Short title. -- This chapter shall be known as the "Stay Invested in RI
Wavemaker Fellowship."
     42-64.26-2. Legislative findings. -- The general assembly finds and declares:
     (1) A well-educated citizenry is critical to this state's ability to compete in the national
and global economies.
     (2) Higher education both benefits individual students and is a public good benefitting the
state as a whole.
     (3) Excessive student loan debt is impeding economic growth in this state. Faced with
excessive repayment burdens, many individuals are unable to start businesses, invest or buy
homes, and may be forced to leave the state in search of higher paying jobs elsewhere.
     (4) Relieving student loan debt would give these individuals greater control over their
earnings, would increase entrepreneurship and demand for goods and services, and would enable
employers in this state to recruit and retain graduates in the fields of science, technology,
engineering and mathematics.
     (5) The Stay Invested in RI Wavemaker Fellowship is designed to achieve the following
goals:
     (i) Promote economic opportunity for people in this state by ensuring access to the
training and higher education that higher-paying jobs require;
     (ii) Bring more and higher-paying jobs to this state by increasing the skill level of this
state's workforce;
     (iii) Offer educational opportunity and retraining to individuals impacted by job loss,
workplace injury, disability or other hardship;
     (iv) Keep young people in the state through incentives for educational opportunity and
creation of more high-paying jobs;
     (v) Encourage an entrepreneurial economy in Rhode Island; and
     (vi) Accomplish all of the goals in this chapter with as little bureaucracy as possible.
     42-64.26-3. Definitions. -- As used in this chapter:
     (1) "Eligible graduate" means an individual who meets the eligibility requirements under
this chapter.
     (2) "Applicant" means an eligible graduate who applies for a tax credit for education loan
repayment expenses under this chapter.
     (3) "Award" means a tax credit awarded by the commerce corporation to an applicant as
provided under this chapter.
     (4) "Taxpayer" means an applicant who receives a tax credit under this chapter.
     (5) "Commerce corporation" means the Rhode Island commerce corporation established
pursuant to chapter 64 of title 42.
     (6) "Eligible expenses" or "education loan repayment expenses" means annual higher
education loan repayment expenses, including, without limitation, principal, interest and fees, as
may be applicable, incurred by an eligible graduate and which the eligible graduate is obligated to
repay for attendance at a post-secondary institution of higher learning.
     (7) "Eligibility period" means a term of up to four (4) consecutive service periods
beginning with the date that an eligible graduate receives initial notice of award under this
chapter and expiring at the conclusion of the fourth service period after such date specified.
     (8) "Eligibility requirements" means the following qualifications or criteria required for
an applicant to claim an award under this chapter:
     (i) That the applicant shall have graduated from an accredited two (2) year, four (4) year
or graduate post-secondary institution of higher learning with an associate's, bachelor's, graduate,
or post-graduate degree and at which the applicant incurred education loan repayment expenses;
     (ii) That the applicant shall be a full-time employee with a Rhode Island-based employer
located in this state throughout the eligibility period, whose employment is for work in one or
more of the following covered fields: life, natural or environmental sciences; computer,
information or software technology; advanced mathematics or finance; engineering; industrial
design or other commercially related design field; or medicine or medical device technology.
     (9) "Full-time employee" means a person who is employed by a business for
consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other
standard of service generally accepted by custom or practice as full-time employment, or who is
employed by a professional employer organization pursuant to an employee leasing agreement
between the business and the professional employer organization for a minimum of thirty-five
(35) hours per week, or who renders any other standard of service generally accepted by custom
or practice as full-time employment, and whose wages are subject to withholding.
     (10) "Service period" means a twelve (12) month period beginning on the date that an
eligible graduate receives initial notice of award under this chapter.
     (11) "Student loan" means a loan to an individual by a public authority or private lender
to assist the individual to pay for tuition, books, and living expenses in order to attend a post-
secondary institution of higher learning.
     (12) "Rhode Island-based employer" means (i) an employer having a principal place of
business or at least fifty-one percent (51%) of its employees located in this state; or (ii) an
employer registered to conduct business in this state that reported Rhode Island tax liability in the
previous tax year.
     (13) "Fund" refers to the "Stay Invested in RI Wavemaker Fellowship Fund" established
pursuant to § 42-64.26-4.
     42-64.26-4. Establishment of fund; Purposes; Composition. -- (a) There is hereby
established the "Stay Invested in RI Wavemaker Fellowship Fund" (the "fund") to be
administered by the commerce corporation as set forth in this chapter.
     (b) The purpose of the fund is to expand employment opportunities in the state and to
retain talented individuals in the state by providing tax credits in relation to education loan
repayment expenses to applicants who meet the eligibility requirements under this chapter.
     (c) The fund shall consist of:
     (1) Money appropriated in the state budget to the fund;
     (2) Money made available to the fund through federal programs or private contributions;
and
     (3) Any other money made available to the fund.
     (d) The fund shall be used to pay for the redemption of tax credits or reimbursement to
the state for tax credits applied against a taxpayer’s tax liability. The fund shall be exempt from
attachment, levy or any other process at law or in equity. The director of the department of
revenue shall make a requisition to the commerce corporation for funding during any fiscal year
as may be necessary to pay for the redemption of tax credits presented for redemption or to
reimburse the state for tax credits applied against a taxpayer’s tax liability. The commerce
corporation shall pay from the fund such amounts as requested by the director of the department
of revenue necessary for redemption or reimbursement in relation to tax credits granted under this
chapter.
     42-64.26-5. Administration. -- (a) Application.-- An eligible graduate claiming an award
under this chapter shall submit to the commerce corporation an application in the manner that the
commerce corporation shall prescribe.
     (b) Upon receipt of a proper application from an applicant who meets all of the eligibility
requirements, the commerce corporation shall select applicants on a competitive basis to receive
credits for up to a maximum amount for each service period of one thousand dollars ($1,000) for
an associate's degree holder, four thousand dollars ($4,000) for a bachelor's degree holder, and six
thousand dollars ($6,000) for a graduate or post-graduate degree holder, but not to exceed the
education loan repayment expenses incurred by such taxpayer during each service period
completed, for up to four (4) consecutive service periods provided that the taxpayer continues to
meet the eligibility requirements throughout the eligibility period. The commerce corporation
shall delegate the selection of the applicants that are to receive awards to a fellowship committee
to be convened by the commerce corporation and promulgate the selection procedures the
fellowship committee will use, which procedures shall require that the committee’s consideration
of applications be conducted on a name-blind and employer-blind basis and that the applications
and other supporting documents received or reviewed by the fellowship committee shall be
redacted of the applicant’s name, street address, and other personally-identifying information as
well as the applicant’s employer’s name, street address, and other employer-identifying
information. The commerce corporation shall determine the composition of the fellowship
committee and the selection procedures it will use in consultation with the state’s chambers of
commerce.
     (c) The credits awarded under this chapter shall not exceed one hundred percent (100%)
of the education loan repayment expenses incurred by such taxpayer during each service period
completed for up to four (4) consecutive service periods. Tax credits shall be issued annually to
the taxpayer upon proof that (i) the taxpayer has actually incurred and paid such education loan
repayment expenses; (ii) the taxpayer continues to meet the eligibility requirements throughout
the service period; (iii) The award shall not exceed the original loan amount plus any capitalized
interest less award previously claimed under this section; and (iv) that the taxpayer claiming an
award is current on his or her student loan repayment obligations.
     (d) The commerce corporation shall not commit to overall awards in excess of the
amount contained in the fund.
     (e) The commerce corporation shall reserve seventy percent (70%) of the awards issued
in a calendar year to applicants who are permanent residents of the state of Rhode Island or who
attended an institution of higher education located in Rhode Island when they incurred the
education loan expenses to be repaid.
     (f) In administering award, the commerce corporation shall:
     (1) Require suitable proof that an applicant meets the eligibility requirements for award
under this chapter;
     (2) Determine the contents of applications and other materials to be submitted in support
of an application for award under this chapter; and
     (3) Collect reports and other information during the eligibility period for each award to
verify that a taxpayer continues to meet the eligibility requirements for an award.
     42-64.26-6. Reporting. -- (a) The commerce corporation shall require taxpayers to
submit annual reports, in such form and on such dates as the commerce corporation shall require,
in order to confirm that the taxpayer continues to meet all of the eligibility requirements of this
chapter and as a prerequisite to funding any award of tax credits under this chapter.
     (b) Notwithstanding any other provision of law, no taxpayer shall receive an award
without first consenting to the public disclosure of the receipt of any award given under this
chapter. The commerce corporation shall annually publish a list of taxpayers receiving awards
under this program, their post-secondary institution of higher learning, and their employer on the
commerce corporation website and in such other locations as it deems appropriate.
     42-64.26-7. Remedies. -- (a) If an eligible graduate receiving an award under this chapter
violates any provision of this chapter or ceases to meet the eligibility requirements of this chapter,
the commerce corporation may, on reasonable notice:
     (1) Withhold further award until the taxpayer complies with the eligibility or other
requirements of the award; or
     (2) Terminate the award.
     42-64.26-8. Carry forward and redemption of tax credits. -- (a) If the amount of the
tax credit allowed under this chapter exceeds the taxpayer’s total tax liability for the year in
which the credit is allowed, the amount of such credit that exceeds the taxpayer’s tax liability
may be carried forward and applied against the taxes imposed for the succeeding four (4) years,
or until the full credit is used, whichever occurs first.
     (b) The tax credit allowed under this chapter may be used as a credit against personal
income taxes imposed under chapter 30 of title 44.
     (c) The division of taxation shall at the request of a taxpayer redeem such credits in
whole or in part for one hundred percent (100%) of the value of the tax credit.
     (d) Any amounts paid to a taxpayer for the redemption of tax credits allowed pursuant to
this section shall be exempt from taxation under title 44 of the General Laws.
     42-64.26-9. Implementation guidelines, rules, regulations. -- (a) The commerce
corporation may adopt implementation guidelines, rules, and regulations pursuant to § 42-35-3 as
are necessary for the implementation of this chapter.
     (b) The commerce corporation shall adopt guidelines to assure integrity and eliminate
potential conflicts of interest in the issuing of awards.
     (c) The division of taxation may adopt implementation guidelines, directives, criteria, and
rules and regulations pursuant to section 42-35-3 of the General Laws, as are necessary for the
implementation of the division’s responsibilities under this chapter.
     42-64.26-10. Promotion by state agencies. -- (a) The commerce corporation and any
other agencies engaging in education-related outreach shall integrate promotion of the program
into existing educational opportunity outreach efforts to the extent possible in a manner consistent
with the scope of the program and its centrality to the state's efforts to raise educational
attainment, including, without limitation, promoting the program to Rhode Island permanent
residents who enroll in accredited Rhode Island colleges or universities and receive financial aid
in the form of student loans.
     42-64.26-11. Program integrity. -- Program integrity being of paramount importance,
the commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein and to safeguard the expenditure of public
funds.
     42-64.26-12. Sunset. -- No incentives or credits shall be authorized pursuant to this
chapter after December 31, 2018.
     SECTION 10. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.27
MAIN STREET RHODE ISLAND STREETSCAPE IMPROVEMENT FUND
     42-64.27-1. Statement of intent. -- It is the intention of the general assembly to foster
private-public partnerships in relation to improvement of streetscapes in local business districts
by creating a funding program to stimulate investment in such improvements, thus enhancing the
environment for business and attracting further investment.
     42-64.27-2. Fund established. -- The main street RI streetscape improvement fund is
hereby created within the Rhode Island commerce corporation. The commerce corporation is
authorized, within available appropriations, to award loans, matching grants, and other forms of
financing to facilitate improvement of streetscapes such as but not limited to (1) enhanced
sidewalks, (2) new wayfinding signage, (3) upgraded building facades, and (4) improved street
and public space lighting, in support of creating an attractive environment for small business
development and commerce. Applications and awards of grants or loans shall be on a rolling
basis. There is established an account in the name of the "main street RI streetscape improvement
fund" under the control of the commerce corporation, and the commerce corporation shall pay
into such account any eligible funds available to the commerce corporation from any source,
including funds appropriated by the state and any grants made available by the United States or
any agency of the United States.
     42-64.27-3. Rules and regulations. -- The commerce corporation is hereby authorized to
promulgate such rules and regulations as are necessary to fulfill the purposes of this chapter,
including the criteria by which grant or loan applications will be judged and awarded.
     42-64.27-4. Reporting requirements. -- The commerce corporation shall publish a
report on the main street RI streetscape improvement fund at the end of each fiscal year. The
report shall contain information on the commitment, disbursement, and use of funds allocated
under the fund. The report shall also, to the extent practicable, track the economic impact of
projects that have been completed using the fund. The report is due no later than sixty (60) days
after the end of the fiscal year, and shall be provided to the speaker of the house of
representatives and the president of the senate.
     42-64.27-5. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.27-6. Sunset. -- No incentives shall be authorized pursuant to this chapter after
December 31, 2018.
     SECTION 11. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.28
INNOVATION INITIATIVE.
     42-64.28-1. Legislative findings. -- (a) While large enterprises have the expert personnel
and financial resources to make strategic investments in innovation, few small businesses have
the resources to do so. The resulting underinvestment in innovation stunts the growth of Rhode
Island's economy, inhibits the potential of small businesses and impedes local universities and
other technological resources from providing technological input and other developmental
assistance to such small businesses. It is the intention of the general assembly to foster innovation
in small businesses and increase demand for technological services by creating an innovation
initiative. This initiative will further advance the competitiveness of Rhode Island's companies in
the national and global economies and result in the creation and/or retention of jobs and tax
revenues for the state.
     42-64.28-2. Definitions. -- As used in this chapter:
     (1) "Commerce corporation" means the Rhode Island commerce corporation established
pursuant to General Laws § 42-64-1 et. seq.
     (2) "Small business" means a business that is resident in Rhode Island, has its business
facility located within the state, and employs five hundred (500) or fewer persons.
     (3) "Match" shall mean a funding match, or in kind services provided by a third party.
     (4) "Targeted industry" means any advanced, promising or otherwise prioritized industry
identified in the economic development vision and policy promulgated pursuant General Laws §
42-64.17-1 or, until such time as any such economic development vision and policy is
promulgated, as identified by the commerce corporation.
     42-64.28-3. Programs established. -- (a) The Rhode Island commerce corporation shall
establish a voucher program and an innovation network program as provided under this chapter.
The programs are subject to available appropriations and such other funding as may be dedicated
to the programs.
     (b) There is established an account in the name of the "innovation initiative fund" (the
"fund") under the control of the commerce corporation to fund the programs.
     (1) The fund shall consist of:
     (i) Money appropriated in the state budget to the fund;
     (ii) Money made available to the fund through federal grants, programs or private
contributions;
     (iii) Application or other fees paid to the fund to process applications for awards under
this chapter; and
     (iv) Any other money made available to the fund.
     (c) Voucher program –The commerce corporation is authorized, to develop and
implement an innovation voucher program to provide financing to small businesses to purchase
research and development support or other forms of technical assistance and services from Rhode
Island institutions of higher education and other providers.
     (d) Innovation network program – The commerce corporation is authorized to provide
innovation grants to organizations, including non-profit organizations, for-profit organizations,
universities, and co-working space operators that offer technical assistance, space on flexible
terms, and access to capital to businesses in advanced or targeted industries. The commerce
corporation shall only issue grants under this section when those grants are matched by private
sector or non-profit partners. The commerce corporation shall establish guidelines for appropriate
matching criteria under this section, including necessary matching ratios.
     42-64.28-4. Eligible uses. -- (a) Vouchers available under this chapter shall be used for
the benefit of small businesses to access technical assistance and other services including, but not
limited to, research, technological development, product development, commercialization, market
development, technology exploration, and improved business practices that implement strategies
to grow business and create operational efficiencies.
     (b) Matching fund awards shall be used for the benefit of small businesses in industries
designated from time-to-time by the corporation, including without limitation, life science and
healthcare; food and agriculture; clean technology and energy efficiency; and cyber security to
pay for and access technological assistance, to procure space on flexible terms, and to access
capital from organizations, including non-profit organizations, for-profit organizations,
universities, and co-working space businesses.
     42-64.28-5. Qualification. -- To qualify for a voucher or for a matching fund award
under this chapter, a business must make application to the commerce corporation, and upon
selection, shall enter into an agreement with the commerce corporation. The commerce
corporation shall have no obligation to issue any voucher, make any award or grant any benefits
under this chapter.
     42-64.28-6. Voucher amounts and matching fund awards. -- (a) Voucher award
amounts to a selected applicant shall be determined by the corporation, to be in the minimum
amount of five thousand dollars ($5,000) and the maximum amount of fifty thousand dollars
($50,000), subject to appropriations or other available moneys in the fund.
     (b) Matching fund awards shall be awarded to organizations in an amount approved by
the corporation, subject to appropriations or other available moneys in the fund.
     42-64.28-7. Rules and regulations. -- The commerce corporation is hereby authorized to
promulgate such rules and regulations as are necessary to fulfill the purposes of this chapter,
including the criteria by which voucher and matching fund applications will be judged, awards
will be approved, and vendors of services will be approved.
     42-64.28-8. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.28-9. Reporting requirements. -- The commerce corporation shall submit a report
annually, no later than sixty (60) days after the end of the fiscal year to the speaker of the house
and the president of the senate detailing: (1) the total amount of innovation vouchers and
matching funds awarded; (2) the number of innovation vouchers and matching fund awards
approved, (3) the amount of each voucher or matching fund award and a description of services
purchased; and (4) such other information as the commerce corporation deems necessary.
     42-64.28-10. Sunset. -- No vouchers, grants, or incentives shall be authorized pursuant to
this chapter after December 31, 2018.
     SECTION 12. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.29
INDUSTRY CLUSTER GRANTS
     42-64.29-1. Statement of intent. -- Robust industry clusters – geographic concentrations
of interconnected firms and related institutions in a field – drive competitiveness and innovation
by fostering dynamic interactions among businesses such as labor force pooling, supplier
specialization, collaborative problem solving, technology exchange and knowledge sharing. It is
the intention of the general assembly to foster such industry clusters by creating a grant program
to stimulate cluster initiatives and enhance industry competitiveness.
     42-64.29-2. Fund established. -- The industry cluster grant fund (the "fund") is hereby
created within the Rhode Island commerce corporation. The commerce corporation is authorized,
within available appropriations, to award grants to organizations on a competitive basis as more
particularly set forth in this chapter. Applications and awards of grants shall be on a rolling basis,
and the commerce corporation shall only issue grants up to the amount contained in the fund.
There is established an account in the name of the fund under the control of the commerce
corporation, and the commerce corporation shall pay into such account any eligible funds
available to the commerce corporation from any source, including funds appropriated by the state
and any grants made available by the United States Government or any agency of the United
States Government.
     42-64.29-3. Startup and technical assistance grants. -- Startup and technical assistance
grants of seventy-five thousand dollars to two hundred fifty thousand dollars shall be made
available to support activities within the industry cluster that enable collaboration among
businesses and other institutions in order to advance innovation and increase sector profitability.
Eligible organizations may be regional or statewide in scope and may include, but not solely be
composed of, relevant companies or institutions outside of Rhode Island. The commerce
corporation shall establish, by regulation, both (a) the criteria for issuing grants under this section;
and (b) a process for receiving and reviewing applications for grants under this section.
     42-64.29-4. Competitive program grants. -- (a) Competitive program grants of one
hundred thousand dollars to five hundred thousand dollars shall be made available to support
activities to overcome identified cluster gaps and documented constraints on cluster growth or to
improve clusters' effectiveness. The commerce corporation shall establish, by regulation, both (1)
the criteria for issuing competitive program grants under this section; and (2) a process for
receiving and reviewing applications for grants under this section. The criteria that the commerce
corporation establishes to evaluate applications for grants under this section shall include
objective evidence of the entity's organizational capacity, degree of internal acceptance of the
proposed program, economic rationale for the proposed activity to be funded and the entity's
ability to raise future funds to sustain the activity when the grant has been expended.
     (b) The commerce corporation shall have no obligation to make any award or grant any
benefits under this chapter.
     42-64.29-5. Rules and regulations. -- The commerce corporation is hereby authorized to
promulgate such rules and regulations as are necessary to fulfill the purposes of this chapter,
including the criteria by which grant applications will be judged and awarded.
     42-64.29-6. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.29-7. Annual report. -- (a) The commerce corporation shall submit a report
annually detailing: (1) The total amount of grants awarded; (2) The number of grants awarded;
(3) The amount of each grant and the private funds matching such grants; (4) The recipients of
the grants; (5) The specific activities undertaken by recipients of grants; and (6) Such other
information as the commerce corporation deems necessary.
     (b) The report required under subsection (a) of this section is due no later than sixty (60)
days after the end of the fiscal year, and shall be provided to the speaker of the house of
representatives and the president of the senate.
     42-64.29-8. Sunset. -- No grants or incentives shall be authorized to be reserved pursuant
to this chapter after December 31, 2018.
     SECTION 13. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.30
ANCHOR INSTITUTION TAX CREDIT
     42-64.30-1. Short title. -- This chapter shall be known and may be cited as the "Anchor
Institution Tax Credit Act."
     42-64.30-2. Statement of intent. -- It is to the advantage of the state of Rhode Island and
its people to attract businesses to locate in Rhode Island thereby increasing the vitality of the
Rhode Island economy. It is the intention of the general assembly to give existing Rhode Island
businesses an incentive to encourage businesses in their supply chain, service providers or
customers to relocate to Rhode Island by giving existing Rhode Island businesses a tax credit
when they are able to bring about a business relocation to this state.
     42-64.30-3. Definitions. -- As used in this act:
     (1) "Commerce corporation" means the Rhode Island commerce corporation established
pursuant to general laws § 42-64-1 et. seq.
     (2) "Eligibility period" means the period in which a Rhode Island business may claim a
tax credit under this act, beginning with the tax period in which the commerce corporation
accepts certification by the Rhode Island business that it has played a substantial role in the
decision of a qualified business to relocate to Rhode Island and extending thereafter for a term of
five (5) years.
     (3) "Hope community" means a municipality for which the five (5) year average
percentage of families with income below the federal poverty level exceeds the state five (5) year
average percentage, both most recently reported by the U.S. Department of Commerce, Bureau of
the Census.
     (4) "Qualified business" means an entity that supplies goods or services to a Rhode Island
business or is a material service provider or a material customer of a Rhode Island business, or is
an affiliate of such supplier, service provider or customer.
     (5) "Qualifying relocation" means a qualified business with the minimum number of
employees as set forth in 42-64.30-5(a)(1) and (2), which moves an existing facility to the state of
Rhode Island or constructs a new facility to supply goods or services to a Rhode Island business.
     (6) "Rhode Island business" means a business enterprise physically located in, and
authorized to do business in, the state of Rhode Island.
     (7) "Taking possession" means executing a lease, acquiring title or otherwise committing
to occupy as defined by the commerce corporation.
     42-64.30-4. Establishment of anchor institution tax credit. -- The tax credit program is
hereby established as a program under the jurisdiction of the commerce corporation and shall be
administered by the commerce corporation. The purposes of the program are to encourage
economic development and job creation in connection with the relocation of qualified businesses
to the state of Rhode Island by providing an incentive to existing Rhode Island businesses to
encourage a qualified business to relocate to Rhode Island. To implement these purposes, the
program may provide tax credits to eligible businesses for a period of five (5) years.
     42-64.30-5. Allowance of tax credits. -- (a) A Rhode Island business, upon application
to and approval from the commerce corporation, shall be allowed a credit as set forth hereinafter
against taxes imposed under applicable provisions of title 44 of the general laws for having
played a substantial role in the decision of a qualified business to relocate a minimum number of
jobs as provided below:
     (1) For the years 2015 through 2018, not less than ten (10) employees to Rhode Island;
and
     (2) For the years 2019 through 2020, not less than twenty-five (25) employees to Rhode
Island.
     (b) To be eligible for the tax credit, an existing Rhode Island business must demonstrate
to the commerce corporation, in accordance with regulations promulgated by the commerce
corporation, that it played a substantial role in the decision of a qualified business to relocate.
     (c) If the commerce corporation approves an application, then an eligible Rhode Island
business which has procured a qualifying relocation shall be entitled to a tax credit. The amount
of the tax credit shall be based upon criteria to be established by the commerce corporation. Such
criteria shall include the number of jobs created, types of jobs and compensation, industry sector
and whether the relocation benefits a hope community.
     (d) In determination of the tax credit amount, the commerce corporation may take into
account such factors as area broker's fees, the strategic importance of the businesses involved,
and the economic return to the state. The tax credits issued under this chapter shall not exceed the
funds appropriated for these credit(s).
     (e) A Rhode Island business qualifying for the tax credit under this chapter shall not be
eligible to receive a credit in excess of seventy-five percent (75%) of the amount appropriated in
the fiscal year in which the tax credits are issued.
     (f) Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in
which the existing Rhode Island business demonstrates, to the satisfaction of the commerce
corporation, both (1) that a certificate of occupancy issues for the project or as of a lease
commencement date or other such related commitment; and (2) that the qualified business has
created the number of net new jobs required by § 42-64.30-5(a)(1) and (2).
     (g) The tax credit allowed under this chapter may be used as a credit against corporate
income taxes imposed under chapters 11, 12, 13, 14, or 17, of title 44.
     (h) In the case of a corporation, this credit is only allowed against the tax of a corporation
included in a consolidated return that qualifies for the credit and not against the tax of other
corporations that may join in the filing of a consolidated tax return.
     (i) If the existing Rhode Island business has not claimed the tax credit allowed under this
chapter in whole or part, the existing Rhode Island business eligible for the tax credit shall, prior
to assignment or transfer to a third party, file a request with the division of taxation to redeem the
tax credit in whole or in part to the state. Within ninety (90) days from the submission of a
request to the division of taxation to redeem the tax credits, the division shall be entitled to
redeem the tax credits in exchange for payment by the state to the existing Rhode Island business
of (1) one hundred percent (100%) of the value of the portion of the tax credit redeemed, or (2)
for tax credits redeemed in whole, one hundred percent (100%) of the total remaining value of the
tax credit; provided, however, that the redemption shall be prorated equally over each year of the
remaining term of the eligible period of the tax credit.
     (j) Any redemption under subsection (h) of this section shall be subject to annual
appropriation by the general assembly.
     42-64.30-6. Administration. -- (a) To be eligible to receive a tax credit authorized by
this chapter, an existing Rhode Island business shall apply to the commerce corporation for
approval prior to the qualified business commencing a relocation search within the state for a
certification that the existing Rhode Island business qualifies for tax credits under this chapter.
Such approval shall require:
     (1) That the qualified business has submitted a completed application as developed by the
commerce corporation;
     (2) That the chief executive officer of the commerce corporation provide written
confirmation to the commerce corporation board that (i) the commerce corporation has reviewed
the application and any determination regarding the potential impact on the qualified business's
ability to promote the retention and expansion of existing jobs, stimulate the creation of new jobs,
including good-paying jobs, attract new business and industry to the state, and stimulate growth
in real estate developments and/or businesses that are prepared to make meaningful investment
and foster job creation in the state; and (ii) of the recommendation of the commerce corporation
as to the total credits to be awarded to the applicant; and
     (3) That the secretary of commerce provide written confirmation to the commerce
corporation board that the recommendation of the commerce corporation is consistent with the
purposes of this chapter.
     (b) The commerce corporation and the division of taxation shall be entitled to rely on the
facts represented in the application and upon the certification of a certified public accountant
licensed in the state of Rhode Island with respect to the requirements of this chapter.
     (c) The tax credits provided for under this chapter shall be granted at the discretion of the
commerce corporation.
     (d) If information comes to the attention of the commerce corporation at any time up to
and including the last day of the eligibility period that is materially inconsistent with
representations made in an application, the commerce corporation may deny the requested
certification, or revoke a certification previously given, with any processing fees paid to be
forfeited.
     42-64.30-7. Rules and regulations. -- The commerce corporation is hereby authorized to
promulgate such rules and regulations as are necessary to fulfill the purposes of this chapter,
including the criteria by which applications for tax credit will be evaluated and approved and to
provide for repayment of credits received if the qualified business leaves Rhode Island within a
period of time to be established by the commerce corporation. The division of taxation is hereby
authorized to promulgate such rules and regulations as are necessary to fulfill the purposes of this
chapter.
     42-64.30-8. Anchor institution tax credit fund. -- There is hereby established at the
commerce corporation a restricted account known as the Anchor Institution tax credit fund (the
"fund") in which all amounts appropriated for the redemption and/or reimbursement of tax credits
under this chapter shall be deposited. The Fund shall be used to pay for the redemption of tax
credits or reimbursement to the state for tax credits applied against a taxpayer's liability. The
Fund shall be exempt from attachment, levy or any other process at law or in equity. The director
of the department of revenue shall make a requisition to the commerce corporation for funding
during any fiscal year as may be necessary to pay for the redemption of tax credits presented for
redemption or to reimburse the state for tax credits applied against a taxpayer's tax liability. The
commerce corporation shall pay from the Fund such amounts as requested by the director of the
department of revenue necessary for redemption or reimbursement in relation to tax credits
granted under this chapter.
     42-64.30-9. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.30-10. Reports. -- (a) By September 1, 2016 and each year thereafter, the
commerce corporation shall report the name, address, and amount of tax credit approved for each
credit recipient during the previous state fiscal year to the governor, the speaker of the house of
representatives, the president of the senate, the chairpersons of the house and senate finance
committees, the house and senate fiscal advisors, and the department of revenue. Such report
shall include any determination regarding the potential impact on an approved qualified
relocation's ability to stimulate business development; retain and attract new business and
industry to the state; create good-paying jobs for its residents; assist with business, commercial,
and industrial real estate development; and generate revenues for necessary state and local
governmental services.
     (b) By October 1, 2016 and each year thereafter, the commerce corporation shall report
for the year previous the total number of agreements and associated amount of approved tax
credits. This report shall be available to the public for inspection by any person and shall be
published by the commerce corporation on its website and by the secretary of commerce on the
executive office of commerce website.
     (c) By October 1st of each year the division of taxation shall report the name, address,
and amount of tax credit received for each credit recipient during the previous state fiscal year to
the governor, the chairpersons of the house and senate finance committees, the house and senate
fiscal advisors, and the department of labor and training.
     42-64.30-11. Sunset. -- No credits shall be authorized to be reserved pursuant to this
chapter after December 31, 2018.
     SECTION 14. Section 44-48.2-3 of the General Laws in Chapter 44-48.2 entitled "Rhode
Island Economic Development Tax Incentives Evaluation Act of 2013" is hereby amended to
read as follows:
     44-48.2-3. Economic development tax incentive defined. -- (a) As used in this section,
the term "economic development tax incentive" shall include:
      (1) Those tax credits, deductions, exemptions, exclusions, and other preferential tax
benefits associated with §§ 42-64.3-6, 42-64.3-7, 42-64.5-3, 42-64.6-4, 42-64.11-4, 44-30-1.1,
44-31-1, 44-31-1.1, 44-31-2, 44-31.2-5, 44-32-1, 44-32-2, 44-32-3, 44-39.1-1, 44-43-2, 44-43-3,
and 44-63-2, and chapters 64.20, 64.21, 64.26, 64.30 of title 42 and chapter 48.3 of title 44;
      (2) Any future incentives enacted after the effective date of this section for the purpose
of recruitment or retention of businesses in the state of Rhode Island.
      (b) In determining whether a future tax incentive is enacted for "the purpose of
recruitment or retention of businesses", the office of revenue analysis shall consider legislative
intent, including legislative statements of purpose and goals, and may also consider whether the
tax incentive is promoted as a business incentive by the state's economic development agency or
other relevant state agency.
     SECTION 15. Title 44 of the General Laws entitled "TAXATION" is hereby amended by
adding thereto the following chapter:
CHAPTER 48.3
RHODE ISLAND NEW QUALIFIED JOBS INCENTIVE ACT 2015
     44-48.3-1. Short title. -- This chapter shall be known and may be cited as the "Rhode
Island Qualified Jobs Incentive Act of 2015."
     44-48.3-2. Findings and declaration. -- (a) It is hereby found and declared that due to
long-term and short-term negative economic trends in Rhode Island, businesses in the state have
found it difficult to make investments that would stimulate economic activity and create new
jobs. This situation has contributed to a rate of unemployment in Rhode Island that is higher than
our neighbors and among the highest in the nation. Consequently, a need exists to promote the
creation of new jobs, attract new business and industry, and stimulate growth in businesses that
are prepared to make meaningful investment and foster job creation in Rhode Island.
     (b) Through the establishment of a jobs incentive program, Rhode Island can take steps to
stimulate business expansion and attraction, create well-paying jobs for its residents, and generate
revenues for necessary state and local governmental services.
     44-48.3-3. Definitions. -- As used in this chapter, unless the context clearly indicates
otherwise, the following words and phrases shall have the following meanings:
     (1) "Affiliate" or "affiliated entity" means an entity that directly or indirectly controls, is
under common control with, or is controlled by the business. Control exists in all cases in which
the entity is a member of an affiliated group of corporations as defined pursuant to § 1504 of the
Internal Revenue Code of 1986 (26 U.S.C. §1504) or the entity is an organization in a group of
organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the
Internal Revenue Code of 1986 (26 U.S.C. §414). A taxpayer may establish by clear and
convincing evidence, as determined by the commerce corporation, that control exists in situations
involving lesser percentages of ownership than required by those statutes. An affiliate of a
business may contribute to meeting full-time employee requirements of a business that applies for
a credit under this chapter.
     (2) "Business" means an applicant that is a corporation, state bank, federal savings bank,
trust company, national banking association, bank holding company, loan and investment
company, mutual savings bank, credit union, building and loan association, insurance company,
investment company, broker-dealer company or surety company, limited liability company,
partnership or sole proprietorship.
     (3) "Commerce corporation" means the Rhode Island commerce corporation established
pursuant to chapter 64 of title 42.
     (4) "Commitment period" means the period of time that at a minimum is twenty percent
(20%) greater than the eligibility period.
     (5) "Eligibility period" means the period in which a business may claim a tax credit under
the program, beginning at the end of the tax period in which the commerce corporation issues a
certification for the business that it has met the employment requirements of the program and
extending thereafter for a term of not more than ten (10) years.
     (6) "Eligible position" or "full-time job" means a full-time position in a business which
has been filled with a full-time employee who earns no less than the median hourly wage as
reported by the United States Bureau of Labor Statistics for the state of Rhode Island, provided,
that for economically fragile industries such as manufacturing, the commerce corporation may
reduce the wage threshold. An economically fragile industry shall not include retail.
     (7) "Full-time employee" means a person who is employed by a business for
consideration for at least thirty-five (35) hours a week, or who is employed by a professional
employer organization pursuant to an employee leasing agreement between the business and the
professional employer organization for at least thirty-five (35) hours a week, and whose wages
are subject to withholding.
     (8) "Hope community" means municipalities with a percentage of families below the
poverty level that is greater than the percentage of families below the poverty level for the state as
a whole as determined by the United States Census Bureau's most recent American Community
Survey.
     (9) "Incentive agreement" means the contract between the business and the commerce
corporation, which sets forth the terms and conditions under which the business shall be eligible
to receive the incentives authorized pursuant to the program.
     (10) "Incentive effective date" means the date the commerce corporation issues a
certification for issuance of tax credit based on documentation submitted by a business pursuant
to § 44-48.3-7.
     (11) "New full-time job" means an eligible position created by the business that did not
previously exist in this state and which is created after approval of an application to the
commerce corporation under the program. Such job position cannot be the result of an acquisition
of an existing company located in Rhode Island by purchase, merger, or otherwise. For the
purposes of determining the number of new full-time jobs, the eligible positions of an affiliate
shall be considered eligible positions of the business so long as such eligible position(s) otherwise
meets the requirements of this section.
     (12) "Partnership" means an entity classified as a partnership for federal income tax
purposes.
     (13) "Program" means the incentive program established pursuant to this chapter.
     (14) "Targeted industry" means any industry identified in the economic development
vision and policy promulgated under § 42-64.17-1 or, until such time as any economic
development vision and policy is promulgated, as identified by the commerce corporation.
     (15) "Taxpayer" means a business granted a tax credit under this chapter or such person
entitled to the tax credit because the business is a pass through entity such as a partnership, S
corporation, sole proprietorship or limited liability company taxed as a partnership.
     (16) "Transit oriented development area" means an area in proximity to mass-transit
infrastructure including, but not limited to, an airport, rail or intermodal facility that will be
further defined by regulation of the commerce corporation in consultation with the Rhode Island
department of transportation.
     44-48.3-4. Rhode Island qualified jobs incentive program. -- (a) The Rhode Island
qualified jobs incentive program is hereby established as a program under the jurisdiction of and
shall be administered by the commerce corporation. The program may provide tax credits to
eligible businesses for an eligibility period not to exceed ten (10) years.
     (b) An eligible business under the program shall be entitled to a credit against taxes
imposed pursuant to chapters 11, 13, 14, 17 or 30 of title 44 as further provided under this
chapter.
     (c) The minimum number of new full-time jobs required to be eligible for a tax credit
under this program shall be as follows:
     (1) For a business in a targeted industry that employs not more than one hundred (100)
full-time employees on the date of application to the commerce corporation, the creation of at
least ten (10) new full-time jobs in this state;
     (2) For a business in a targeted industry that employs more than one hundred (100) full-
time employees on the date of application to the commerce corporation, either the creation of new
full-time jobs in this state in an amount not less than ten percent (10%) of the business's existing
number of full-time employees or the creation of at least one hundred (100) new full-time jobs in
this state;
     (3) For a business in a non-targeted industry that employs not more than two hundred
(200) full-time employees on the date of application to the commerce corporation, the creation of
at least twenty (20) new full-time jobs in this state; or
     (4) For a business in a non-targeted industry that employs more than two hundred (200)
full-time employees on the date of application to the commerce corporation, either the creation of
new full-time jobs in this state in an amount not less than ten percent (10%) of the business's
existing number of full-time employees or the creation of at least one hundred (100) new full-
time jobs in this state.
     (d) When a business applies for an incentive under this chapter, in order to assist the
commerce corporation in determining whether the business is eligible for the incentives under
this chapter, the business's chief executive officer, or equivalent officer, shall attest under oath:
     (1) That any projected creation of new full-time jobs would not occur, or would not occur
in the state of Rhode Island, but for the provision of tax credits under the program;
     (2) The business will create new full-time jobs in an amount equal to or greater than the
applicable number set forth in subsection (c) of this section;
     (3) That the business's chief executive officer, or equivalent officer, has reviewed the
information submitted to the commerce corporation and that the representations contained therein
are accurate and complete.
     (e)The commerce corporation shall establish, by regulation, the documentation an
applicant shall be required to provide under this subsection. Such documentation may include
documentation showing that the applicant could reasonably locate the new positions outside of
this state, or that the applicant is considering locating the positions outside of this state, or that it
would not be financially feasible for the applicant to create the positions without the tax credits
provided in this chapter.
     (f) In the event that this attestation by the business's chief executive officer, or equivalent
officer, required under subsection (d) of this section is found to be willfully false, the commerce
corporation may revoke any award of tax credits in their entirety, which revocation shall be in
addition to any other criminal or civil penalties that the business and/or the officer may be subject
to under applicable law. Additionally, the commerce corporation may revoke any award of tax
credits in its entirety if the eligible business is convicted of bribery, fraud, theft, embezzlement,
misappropriation, and/or extortion involving the state, any state agency or political subdivision of
the state.
     44-48.3-5. Incentive agreement required prior to issuance of tax credits. -- (a) The
commerce corporation shall require an eligible business to enter into an incentive agreement prior
to the issuance of tax credits. The incentive agreement shall include, but shall not be limited to,
the following:
     (1) A detailed description of the proposed job creation including industry sectors and the
number of new full-time jobs that are sought to be approved for tax credits;
     (2) The eligibility period of the tax credits, including the first year for which the tax
credits may be claimed;
     (3) A requirement that the applicant maintain the project at a location in Rhode Island for
the commitment period, with at least the minimum number of full-time employees as required by
this program;
     (4) A method for the business to annually certify that it has met the employment
requirements of the program for each year of the commitment period;
     (5) A provision permitting an audit of the payroll records of the business from time to
time, as the commerce corporation deems necessary;
     (6) A provision establishing the conditions under which the agreement may be
terminated;
     (7) A provision that if, in any tax period, the business reduces the total number of full-
time employees in its statewide workforce in the last tax period prior to the credit amount
approval under this program by more than twenty percent (20%) of jobs for which a credit was
granted under this chapter as described in the business's incentive agreement(s), then the business
shall forfeit all credit amounts described in the business's incentive agreement(s) for that tax
period and each subsequent tax period, until the first tax period for which documentation
demonstrating the restoration of the business's statewide workforce to the threshold levels
required by the incentive agreement(s) has been reviewed and approved by the commerce
corporation, for which tax period and each subsequent tax period the full amount of the credit
shall be allowed; and
     (8) A provision that during the commitment period, if the business ceases operations in
the state or transfers more than fifty percent (50%) of the jobs for which a credit was granted
under this chapter to another state, the tax credit shall cease pursuant to this section and the
business shall be liable to the state for, at a minimum, twenty percent (20%) of all tax benefits
granted to the business under this chapter calculated from the date of the incentive agreement.
     44-48.3-6. Total amount of tax credit for eligible business. -- (a) The base amount of
the tax credit for an eligible business for each new full-time job shall be up to two thousand five
hundred dollars ($2,500) annually.
      (b) The total tax credit amount shall be calculated and credited to the business annually
for each year of the eligibility period after the commerce corporation, in consultation with the
division of taxation, has verified that the jobs covered by the tax credit have generated sufficient
personal income taxes to comply with subsection (e) of this section.
     (c) In addition to the base amount of the tax credit, the amount of the tax credit to be
awarded for each new full-time job may be increased, pursuant to the provisions of subsection (d)
of this section, if the business meets any of the following criteria or such other additional criteria
determined by the commerce corporation from time to time in response to evolving economic or
market conditions:
     (1) For a business located within a hope community;
     (2) For a targeted industry;
     (3) For a business located within a transit oriented development area; and
     (4) For an out-of-state business that relocates a business unit or units or creates a
significant number of new full-time jobs during the commitment period.
     (d) For any application made to the commerce corporation from 2015 through 2018, the
tax credit for an eligible business for each new full-time job shall not exceed seven thousand five
hundred dollars ($7,500) annually.
     (e) Notwithstanding the provisions of subsections (a) through (d) of this section, for each
application approved by the commerce corporation, the amount of tax credits available to be
obtained by the business annually shall not exceed the reasonable W-2 withholding received by
the state for each new full-time job created by a business for applications received by the
commerce corporation in 2015 through 2018.
      (f) The commerce corporation shall establish regulations regarding the conditions under
which a business may submit more than one application for tax credits over time. The commerce
corporation may place limits on repeat applications.
     44-48.3-7. Documentation. -- (a) A business shall submit documentation indicating that
it has met the employment requirements specified in the incentive agreement for certification of
its tax credit amount within three (3) years following the date of approval of its application by the
commerce corporation. The commerce corporation, after a finding of good cause, may grant two
(2) six (6) month extensions of this deadline. In no event shall the incentive effective date occur
later than four (4) years following the date of approval of an application by the commerce
corporation.
     (b) Full-time employment for an accounting or privilege period shall be determined as the
average of the monthly full-time employment for the period.
     (c) In conducting its annual review of a business, the commerce corporation may require
a business to submit any information determined by the commerce corporation to be necessary
and relevant to its review.
     (d) The credit amount for any tax period for which the documentation of a business's
credit amount remains uncertified as of a date one year after the closing date of that period shall
be forfeited, although credit amounts for the remainder of the years of the eligibility period shall
remain available to the business.
     44-48.3-8. Carry forward, transfer or redemption of tax credits, redemption fund. --
(a) If the amount of the tax credit allowed under this chapter exceeds the taxpayer's total tax
liability for the year in which the credit is allowed, the amount of such credit that exceeds the
taxpayer's tax liability may be carried forward and applied against the taxes imposed for the
succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed
to a partnership, a limited liability company taxed as a partnership, or multiple owners of property
shall be passed through to the persons designated as partners, members or owners respectively
pro rata or pursuant to an executed agreement among such persons designated as partners,
members or owners documenting an alternate distribution method without regard to their sharing
of other tax or economic attributes of such entity.
     (b) The commerce corporation shall establish, by regulation, the process for the
assignment, transfer or conveyance of tax credits.
     (c) For purposes of this chapter, any assignment or sales proceeds received by the
taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be
exempt from taxation under title 44. If a tax credit is subsequently revoked or adjusted, the
seller's tax calculation for the year of revocation or adjustment shall be increased by the total
amount of the sales proceeds, without proration, as a modification under chapter 30 of title 44 of
the general laws. In the event that the seller is not a natural person, the seller's tax calculation
under chapters 11, 13, 14, or 17 of title 44, as applicable, for the year of revocation, or
adjustment, shall be increased by including the total amount of the sales proceeds without
proration.
     (d) The tax credit allowed under this chapter may be used as a credit against corporate
income taxes imposed under chapters 11, 13, 14, or 17 of title 44, or as determined by the
commerce corporation may be used as a credit against personal income taxes imposed under
chapter 30 of title 44. No more than the amount of tax credits equal to the total credit amount
divided by the duration of the eligibility period in years may be taken in any tax period.
     (e) Prior to assignment or transfer of a tax credit granted under this chapter, the division
of taxation shall, at the request of the business, redeem such credit in whole or in part for ninety
percent (90%) of the value of the tax credit with monies in the jobs tax credit redemption fund
created under subsection (f) of this section. The division of taxation shall establish by regulation a
redemption process for tax credits.
     (f) The division of taxation is hereby authorized and empowered to segregate taxes
collected as a result of the creation of new full-time jobs under this chapter and transfer such
amounts to the general treasurer for deposit in a restricted account known as the jobs tax credit
redemption fund. The jobs tax credit redemption fund shall be used solely to pay for the
redemption of tax credits granted under this chapter. The director of the department of revenue
shall annually determine if a surplus exists in the job tax credit redemption fund over amounts
necessary to redeem tax credits in a fiscal year and may authorize the general treasurer to transfer
any surplus to the general fund.
     (g) The unexpended balance of such sum of money received and appropriated for the jobs
tax credit redemption fund remaining in the treasury at the close of each fiscal year, shall be
continued to and is hereby annually appropriated for the same account for the ensuing year.
     (h) The commerce corporation shall have no obligation to make any award or grant any
benefits under this chapter.
     44-48.3-9. Administration. -- (a) The commerce corporation may adopt implementation
guidelines, directives, criteria, rules and regulations pursuant to chapter 35 of title 42
("administrative procedures act") as are necessary to implement this chapter, including, but not
limited to: the enumeration of specific targeted industries; specific delineation of the incentive
areas; the promulgation of procedures and forms necessary to apply for a tax credit, including the
enumeration of the certification procedures and allocation of tax credits; and provisions for tax
credit applicants to be charged an initial application fee, and ongoing service fees, to cover the
administrative costs related to the tax credit.
     (b) For businesses adding jobs on the basis of a future federal procurement, the
commerce corporation shall establish specific procedures.
     (c) The division of taxation shall adopt rules as are necessary to implement this chapter.
     44-48.3-10. Limitations. -- The incentives provided under this chapter shall not be
granted in combination with any other job specific benefit provided by the state, the commerce
corporation, or any other state agency, board, commission, quasi-public corporation or similar
entity without the express authorization of the commerce corporation.
     44-48.3-11. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program. At
a minimum these procedures will include an audit, at least every three (3) years, of the process
the commerce corporation followed in the administration of the program.
     44-48.3-12. Discontinuance of further rate reductions and future beneficiaries under
the jobs development act. -- (a) The rate reduction(s) provided pursuant to chapter 64.5 of title
42 of the general laws shall be discontinued effective July 1, 2015, except as provided in
subsection (b) of this section.
     (b) Any company that has qualified for a rate reduction pursuant to chapter 64.5 of title
42 prior to July 1, 2015, shall be entitled to maintain the rate reduction in effect as of June 30,
2015, and no additional rate reduction shall be permitted. All obligations of the company required
under chapter 64.5 of title 42 to retain a rate reduction shall remain in full force and effect.
     44-48.3-13. Reporting requirements. -- (a) By August 1st of each year, each applicant
approved for credits under this chapter shall report to the commerce corporation and the division
of taxation the following information:
     (1) The number of total jobs created;
     (2) The applicable north American industry classification survey annual system code of
each job created;
     (3) The annual salary of each job created;
     (4) The address of each new employee;
     (b) By September 1, 2016 and each year thereafter, the commerce corporation shall report
the name, address, and amount of tax credit approved for each credit recipient during the previous
state fiscal year to the governor, the speaker of the house of representatives, the president of the
senate, the chairpersons of the house and senate finance committees, the house and senate fiscal
advisors, and the department of revenue.
     (c) By October 1, 2016 and each year thereafter, the commerce corporation shall report
for the year (1) the total number of businesses awarded credits in the previous fiscal year and (2)
the name and address of each credit recipient . This report shall be available to the public for
inspection by any person and shall be published by the chief executive of the commerce
corporation on the commerce corporation and executive office of commerce websites.
     (d) By October 1st of each year the division of taxation shall report the name, address,
and amount of tax credit received for each credit recipient during the previous state fiscal year to
the governor, the chairpersons of the house and senate finance committees, the house and senate
fiscal advisors, and the department of labor and training.
     (e) By November 1st of each year the division of taxation shall report in the aggregate the
information required under subsection 44-48.3-13(a). 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.
     44-48.3-14. Sunset. -- No credits shall be authorized to be reserved pursuant to this
chapter after December 31, 2018.
     SECTION 16. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 64.31
HIGH SCHOOL, COLLEGE, AND EMPLOYER PARTNERSHIPS
     42-64.31-1. High school, college, and employer partnership. -- The commerce
corporation shall be authorized to grant funds to support partnerships among individual high
schools, the community college of Rhode Island, other institutions of higher education, and
employers to offer courses towards a high school diploma and associate's degree, as well as
internships and mentorships that help lead to employment after graduation. Such funds may be
used for purposes including, but not limited to, establishing partnerships, hiring coordinators,
compensating partnership instructors and administrators, purchasing books and other educational
supplies, underwriting coursework, and covering additional instructional, coordination, and
related expenses.
     42-64.31-2. Program integrity. -- Program integrity being of paramount importance, the
commerce corporation shall establish procedures to ensure ongoing compliance with the terms
and conditions of the program established herein, including procedures to safeguard the
expenditure of public funds and to ensure that the funds further the objectives of the program.
     42-64.31-3. Reporting requirements. -- The commerce corporation shall submit a report
annually, no later than sixty (60) days after the end of the fiscal year to the speaker of the house
and the president of the senate detailing the total amount of grants awarded and matching funds
awarded and such other information as the commerce corporation deems necessary.
     42-64.31-4. Sunset. -- No grants shall be authorized pursuant to this chapter after
December 31, 2018.
     SECTION 17. This article shall take effect upon passage.