Rhode Island House Bill H5838

Rhode Island 2023 Regular Session

• Introduced: 3/1/23
• Refer: 3/1/23
• Report Pass: 5/25/23
• Engrossed: 6/7/23
• Refer: 6/8/23

Caption

Facilitating Business Rapid Response To State Declared Disaster Act Of 2023

Impact

If enacted, HB 5838 will significantly impact the operations of out-of-state firms that respond to natural disasters or emergencies in Rhode Island. The exemption from tax liabilities means that businesses can mobilize and allocate resources rapidly to the state without worrying about establishing a tax presence or residency during temporary operations. This legislation seeks to ensure that critical repair and restoration work can commence swiftly, promoting an efficient recovery process post-disaster and benefiting the state's economy in times of crisis.

Summary

House Bill 5838, known as the 'Facilitating Business Rapid Response to State Declared Disaster Act of 2023,' aims to streamline the process through which out-of-state businesses and employees can operate within Rhode Island during state-declared emergencies or disasters. The bill establishes criteria under which these entities can provide immediate assistance, particularly in restoring and repairing critical infrastructure damaged during such emergencies without being burdened by state and local tax obligations. This includes provisions exempting them from business and employee taxes while they are engaged solely in disaster-related work.

Contention

While supporters of HB 5838 laud it as a necessary measure for enhancing Rhode Island's resilience against disasters, there are concerns regarding the implications of exempting out-of-state workers from local oversight and taxing authority. Critics voice apprehension that such measures could lead to a decrease in local job opportunities, as out-of-state contractors are prioritized in restoration efforts. Additionally, there are worries about the potential for inadequate regulation of these entities, which may lead to lower local standards for labor and safety compliance. The balance between rapid response and local economic protection remains a point of contention among lawmakers.