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.)