TITLE 44

Taxation

CHAPTER 44-31.2

Motion Picture Production Tax Credits

SECTION 44-31.2-6.1



   § 44-31.2-6.1  Impact analysis and periodic

reporting. –

(a) The film office shall not certify or approve any application under §

44-31.2-6 of this chapter until it has first prepared and publicly released an

analysis of the impact the proposed investment will or may have on the state.

The analysis shall be supported by appropriate data and documentation and shall

consider, but not be limited to, the following factors:



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

applicant will be involved;



   (ii) State fiscal matters, including the state budget

(revenues and expenses);



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

under the plans for the proposed investment and negative foreseeable

contingencies that may arise therefrom;



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

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

and non-construction;



   (v) Identification of geographic sources of the staffing for

identified jobs;



   (vi) The projected duration of the identified construction

jobs;



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

identified jobs;



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

identified jobs, including healthcare insurance and any retirement benefits;



   (ix) The projected fiscal impact on increased personal income

taxes to the state of Rhode Island; and



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

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

employees, and outreach to minority job applicants and minority businesses.



   (b) The film office shall monitor every impact analysis it

completes through the duration of any approved tax credit. Such monitoring

shall include annual reports made available to the public on the:



   (1) Actual versus projected impact for all considered

factors; and



   (2) Verification of all commitments made in consideration of

state incentives or aid.



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

by subsection (b) of this section, the film office shall provide copies of that

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

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

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

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

tax division website. Annually thereafter, through and including the second tax

year after any taxpayer has applied for and received a tax credit pursuant to

this chapter, the department of labor and training shall certify to the

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

fiscal advisors, the corporation and the division of taxation that: (i) the

actual number of new full-time jobs with benefits created by the

state-certified production, not including construction jobs, is on target to

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

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

not declined. For purposes of this section, "full-time jobs with benefits"

means jobs that require working a minimum of thirty (30) hours per week within

the state, with a median wage that exceeds by five percent (5%) the median

annual wage for full-time jobs in Rhode Island and within the taxpayer's

industry, with a benefit package that includes healthcare insurance plus other

benefits typical of companies within the motion picture industry. The

department of labor and training shall also certify annually to the house and

senate fiscal committee chairs, the house and senate fiscal advisors, and the

division of taxation that jobs created by the state-certified production are

"new jobs" in the state of Rhode Island, meaning that the employees of the

motion picture production company are in addition to, and without a reduction

of, those employees of the motion picture production company currently employed

in Rhode Island, are not relocated from another facility of the motion picture

production company in Rhode Island or are employees assumed by the motion

picture production company as the result of a merger or acquisition of a

company already located in Rhode Island. The certifications made by the

department of labor and training shall be available to the public for

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

tax division website.



   (d) The film office, with the assistance of the motion

picture production company, the department of labor and training, the

department of human services and the division of taxation shall provide

annually an analysis of whether any of the employees of the motion picture

production company has received RIte Care or RIte Share benefits and the impact

such benefits or assistance may have on the state budget. This analysis shall

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

by the tax administrator on the tax division website. Notwithstanding any other

provision of law or rule or regulation, the division of taxation, the

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

authorized to present, review and discuss project-specific tax or employment

information or data with the film office, the chairpersons of the house and

senate finance committees, and/or the house and senate fiscal advisors for the

purpose of verification and compliance with this tax credit reporting

requirement.



   (e) Any agreements or contracts entered into by the film

office and the motion picture production company shall be sent to the division

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

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



   (f) By August 15th of each year the motion picture production

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

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

entity, state agency or public agency as defined in § 37-2-7 received

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

division of taxation and be available to the public for inspection by any

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

website.



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

shall report the name, address, and amount of tax credit received for each

motion picture production company during the previous state fiscal year to the

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

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

division of taxation. This report shall be available to the public for

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

tax division website.



   (h) 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. 2008, ch. 165, § 6; P.L. 2008, ch. 173, § 6; P.L. 2011, ch.

151, art. 19, § 8.)