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§42-64-10  Findings of the corporation. –


Published: 2015

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TITLE 42

State Affairs and Government

CHAPTER 42-64

Rhode Island Commerce Corporation

SECTION 42-64-10



   § 42-64-10  Findings of the corporation.

–

(a) Except as specifically provided in this chapter, the Rhode Island commerce

corporation shall not be empowered to undertake the acquisition, construction,

reconstruction, rehabilitation, development, or improvement of a project, nor

enter into a contract for any undertaking or for the financing of this

undertaking, unless it first:



   (1) Finds:



   (i) That the acquisition or construction and operation of the

project will prevent, eliminate, or reduce unemployment or underemployment in

the state and will generally benefit economic development of the state;



   (ii) That adequate provision has been made or will be made

for the payment of the cost of the acquisition, construction, operation, and

maintenance and upkeep of the project;



   (iii) That, with respect to real property, the plans and

specifications assure adequate light, air, sanitation, and fire protection;



   (iv) That the project is in conformity with the applicable

provisions of chapter 23 of title 46; and



   (v) That the project is in conformity with the applicable

provisions of the state guide plan; and



   (2) Prepares and publicly releases an analysis of the impact

the proposed project will or may have on the State. The analysis shall be

supported by appropriate data and documentation and shall consider, but not be

limited to, the following factors:



   (i) The impact on the industry or industries in which the

completed project will be involved;



   (ii) State fiscal matters, including the state budget

(revenues and expenses);



   (iii) The financial exposure of the taxpayers of the state

under the plans for the proposed project and negative foreseeable contingencies

that may arise therefrom;



   (iv) The approximate number of full-time, part-time,

temporary, seasonal, and/or permanent jobs projected to be created,

construction and non-construction;



   (v) Identification of geographic sources of the staffing for

identified jobs;



   (vi) The projected duration of the identified construction

jobs;



   (vii) The approximate wage rates for each category of the

identified jobs;



   (viii) The types of fringe benefits to be provided with the

identified jobs, including healthcare insurance and any retirement benefits;



   (ix) The projected fiscal impact on increased personal income

taxes to the state of Rhode Island; and



   (x) The description of any plan or process intended to

stimulate hiring from the host community, training of employees or potential

employees and outreach to minority job applicants and minority businesses.



   (b) With respect to the uses described in § 42-64-3(18),

(23), (30), (35), and (36) and with respect to projects situated on federal

lands, the corporation shall not be required to make the findings specified in

subsection (a)(1)(i) of this section.



   (c) Except for the findings specified in subsections

(a)(1)(iv) and (a)(1)(v) of this section, the findings of the corporation made

pursuant to this section shall be binding and conclusive for all purposes. Upon

adoption by the corporation, any such findings shall be transmitted to the

division of taxation, and shall be made available to the public for inspection

by any person, and shall be published by the tax administrator on the tax

division website.



   (d) The corporation shall monitor every impact analysis it

completes through the duration of any project incentives. Such monitoring shall

include annual reports which shall be transmitted to the division of taxation,

and shall be available to the public for inspection by any person, and shall be

published by the tax administrator on the tax division website. The annual

reports on the impact analysis shall include:



   (1) Actual versus projected impact for all considered

factors; and



   (2) Verification of all commitments made in consideration of

state incentives or aid.



   (e) Upon its preparation and release of the analysis required

by subsection (a)(2) of this section, the corporation shall provide copies of

that analysis to the chairpersons of the house and senate finance committees,

the house and senate fiscal advisors, the department of labor and training and

the division of taxation. Any such analysis shall be available to the public

for inspection by any person and shall be published by the tax administrator on

the tax division website. Annually thereafter, the department of labor and

training shall certify to the chairpersons of the house and senate finance

committees, the house and senate fiscal advisors, the corporation and the

division of taxation that: (i) the actual number of new full-time jobs with

benefits created by the project, not including construction jobs, is on target

to meet or exceed the estimated number of new jobs identified in the analysis

above, and (ii) the actual number of existing full-time jobs with benefits has

not declined. This certification shall no longer be required two (2) tax years

after the terms and conditions of both the general assembly's joint resolution

of approval required by § 42-64-20.1 of this chapter and any agreement

between the corporation and the project lessee have been satisfied. For

purposes of this section, "full-time jobs with benefits" means jobs that

require working a minimum of thirty (30) hours per week within the state, with

a median wage that exceeds by five percent (5%) the median annual wage for

full-time jobs in Rhode Island and within the taxpayer's industry, with a

benefit package that includes healthcare insurance plus other benefits typical

of companies within the project lessee's industry. The department of labor and

training shall also certify annually to the chairpersons of the house and

senate finance committees, the house and senate fiscal advisors, and the

division of taxation that jobs created by the project are "new jobs" in the

state of Rhode Island, meaning that the employees of the project are in

addition to, and without a reduction in the number of, those employees of the

project lessee currently employed in Rhode Island, are not relocated from

another facility of the project lessee in Rhode Island or are employees assumed

by the project lessee as the result of a merger or acquisition of a company

already located in Rhode Island. The certifications made by the department of

labor and training shall be available to the public for inspection by any

person and shall be published by the tax administrator on the tax division

website.



   (f) The corporation, with the assistance of the taxpayer, the

department of labor and training, the department of human services and the

division of taxation shall provide annually an analysis of whether any of the

employees of the project lessee has received RIte Care or RIte Share benefits

and the impact such benefits or assistance may have on the state budget. Any

such analysis shall be available to the public for inspection by any person and

shall be published by the tax administrator on the tax division website.

Notwithstanding any other provision of law or rule or regulation, the division

of taxation, the department of labor and training and the department of human

services are authorized to present, review and discuss lessee-specific tax or

employment information or data with the Rhode Island commerce corporation

(RICC), the chairpersons of the house and senate finance committees, and/or the

house and senate fiscal advisors for the purpose of verification and compliance

with this tax credit reporting requirement.



   (g) The corporation and the project lessee shall agree that,

if at any time prior to pay back of the amount of the sales tax exemption

through new income tax collections over three (3) years, not including

construction job income taxes, the project lessee will be unable to continue

the project, or otherwise defaults on its obligations to the corporation, the

project lessee shall be liable to the state for all the sales tax benefits

granted to the project plus interest, as determined in Rhode Island General Law

§ 44-1-7, calculated from the date the project lessee received the sales

tax benefits.



   (h) Any agreements or contracts entered into by the

corporation and the project lessee shall be sent to the division of taxation

and be available to the public for inspection by any person and shall be

published by the tax administrator on the tax division website.



   (i) By August 15th of each year the project lessee shall

report the source and amount of any bonds, grants, loans, loan guarantees,

matching funds or tax credits received from any state governmental entity,

state agency or public agency as defined in § 37-2-7 received during the

previous state fiscal year. This annual report shall be sent to the division of

taxation and be available to the public for inspection by any person and shall

be published by the tax administrator on the tax division website.



   (j) By August 15th of each year the division of taxation

shall report the name, address, and amount of sales tax benefit each project

lessee received during the previous state fiscal year to the corporation, the

chairpersons of the house and senate finance committees, the house and senate

fiscal advisors, the department of labor and training and the division of

taxation. This report shall be available to the public for inspection by any

person and shall be published by the tax administrator on the tax division

website.



   (k) On or before September 1, 2011, and every September 1

thereafter, the project lessee shall file an annual report with the tax

administrator. Said report shall contain each full-time equivalent, part-time

or seasonal employee's name, social security number, date of hire, and hourly

wage as of the immediately preceding July 1 and such other information deemed

necessary by the tax administrator. The report shall be filed on a form and in

a manner prescribed by the tax administrator.



History of Section.

(P.L. 1974, ch. 100, § 14; P.L. 1995, ch. 343, § 1; P.L. 2004, ch.

275, § 2; P.L. 2004, ch. 390, § 2; P.L. 2008, ch. 165, § 1; P.L.

2008, ch. 173, § 1; P.L. 2011, ch. 151, art. 19, § 5; P.L. 2013, ch.

243, § 3; P.L. 2013, ch. 490, § 3.)