Rhode Island 2023 Regular Session

Rhode Island House Bill H5838 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5838
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7	7	LC002095
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO BUSINESSES AND PROFESSIONS -- FACILITATING BUSINESS RAPID
16	16	RESPONSE TO STATE DECLARED DISASTER ACT OF 2023
17	17	Introduced By: Representatives Kennedy, Azzinaro, Diaz, Ackerman, Casimiro, and
18	18	Bennett
19	19	Date Introduced: March 01, 2023
20	20	Referred To: House Corporations
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23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS" 1
25	25	is hereby amended by adding thereto the following chapter: 2
26	26	CHAPTER 93 3
27	27	FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTER ACT 4
28	28	OF 2023 5
29	29	5-93-1. Short title. 6
30	30	This chapter shall be known and may be cited as the “Facilitating Business Rapid Response 7
31	31	to State Declared Disaster Act of 2023.” 8
32	32	5-93-2. Legislative findings. 9
33	33	The general assembly hereby makes the following findings: 10
34	34	(1) During times of storm, flood, fire, earthquake, hurricane or other disaster or emergency, 11
35	35	many businesses bring in resources and personnel from other states throughout the United States 12
36	36	on a temporary basis to expedite the often enormous and overwhelming task of cleaning up, 13
37	37	restoring and repairing damaged buildings, equipment and property or even deploying or building 14
38	38	replacement facilities in the state; 15
39	39	(2) This action may involve the need for out-of-state businesses, including out-of-state 16
40	40	affiliates of businesses based in the state, to bring in resources, property and/or personnel that 17
41	41	previously have had no connection to the state, to perform activity in the state including, but not 18
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45	45	limited to, repairing, renovating, installing, building, rendering services or other business activities 1
46	46	and for which personnel may be located in the state for extended periods of time to perform such 2
47	47	activities; 3
48	48	(3) During such time of operating in the state on a temporary basis solely for purposes of 4
49	49	helping the state recover from the disaster or emergency, these businesses and individual employees 5
50	50	should not be burdened by any requirements for business and employee taxes as a result of such 6
51	51	activities in the state for a temporary period; 7
52	52	(4) The state’s nexus and residency thresholds are intended for businesses and individua ls 8
53	53	in the state as part of the conduct of regular business operations or who intend to reside in the state 9
54	54	and should not be directed at businesses and individuals coming into the state on a temporary basis 10
55	55	to provide assistance in response to a declared state disaster or emergency; and 11
56	56	(5) To ensure that businesses may focus on quick response to the needs of the state and its 12
57	57	citizens during a declared state disaster or emergency, it is appropriate for the general assembly to 13
58	58	deem that such activity, for a reasonable period of time before, during and after the disaster or 14
59	59	emergency for repairing and restoration of the often devastating damage to critical infrastructure 15
60	60	shall not establish presence, residency, nor doing business in the state nor any other criteria for 16
61	61	purposes of state and local taxes, and specified licensing and regulatory requirements. 17
62	62	5-93-3. Definitions. 18
63	63	As used in this chapter, the following terms shall have the following meanings: 19
64	64	(1) “'Critical infrastructure” means property and equipment located in this state that is 20
65	65	owned or used by communications networks, cable, video, or broadband networks; gas and electric 21
66	66	distribution systems; water pipelines, railways, public roads and bridges and related support 22
67	67	facilities that service multiple customers or citizens including, but not limited to, real and personal 23
68	68	property such as buildings, offices, lines, poles, pipes, structures and equipment. 24
69	69	(2) “Declared state disaster or emergency” means a disaster or emergency event for which 25
70	70	a governor’s state of emergency proclamation has been issued or for which a presidential 26
71	71	declaration of a federal major disaster or emergency has been issued. 27
72	72	(3) “Disaster or emergency-related work” means repairing, renovating, installing, building, 28
73	73	rendering services or other business activities that relate to critical infrastructure that has been 29
74	74	damaged, destroyed or lost as a result of the declared state disaster or emergency during the disaster 30
75	75	period. 31
76	76	(4) “Disaster period” means a period that begins within ten (10) days of the first day of the 32
77	77	governor’s proclamation or the president’s declaration (whichever occurs first) and that extends for 33
78	78	a period of sixty (60) calendar days after the end of the declared disaster or emergency period. 34
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82	82	(5) “Out-of-state business” means a business entity that, except for disaster or emergency-1
83	83	related work, has no presence in the state and conducts no business in the state whose services are 2
84	84	requested by a registered business or by a state or local government for purposes of performing 3
85	85	disaster or emergency-related work in the state. This definition shall also include a business entity 4
86	86	that is affiliated with the registered business in the state solely through common ownership. The 5
87	87	“out-of-state business” has no registrations or tax filings or nexus in the state prior to the declared 6
88	88	state disaster or emergency, other than disaster or emergency-related work during the tax year 7
89	89	immediately preceding the declared sate disaster or emergency. 8
90	90	(6) “Out-of-state employee” means an employee who does not work in the state, except for 9
91	91	disaster or emergency-related work during the disaster response period. 10
92	92	(7) “Registered business in the state” or “registered business” means a business entity that 11
93	93	is currently registered to do business in the state prior to the declared state disaster or emergency. 12
94	94	5-93-4. Obligations, rights and duties. 13
95	95	(a) An out-of-state business that conducts operations within the state for purposes of 14
96	96	performing work or services on critical infrastructure damaged, destroyed, or lost as a result of a 15
97	97	declared state disaster or emergency during the disaster period shall not be considered to have 16
98	98	established a level of presence that would require that business to register, file and remit state or 17
99	99	local taxes or that would require that business or its out-of-state employees to be subject to the state 18
100	100	telecommunications technician, contractor or installer licensing requirements as long as they are 19
101	101	under the supervision of the registered business. This exemption includes any state or local 20
102	102	telecommunications business licensing or registration requirements or state and local taxes or fees 21
103	103	such as unemployment insurance, state or local occupational telecommunications technician 22
104	104	licensing fees and use tax on equipment brought into the state on a temporary basis that is used 23
105	105	during the disaster period as well as public service commission or secretary of state licensing and 24
106	106	regulatory requirements. For purposes of any state or local tax on or measured by, in whole or in 25
107	107	part, net or gross income or receipts, all activity of the out-of-state business that is conducted in 26
108	108	this state pursuant to this chapter shall be disregarded with respect to any filing requirements for 27
109	109	such tax, including the filing required for a unitary or combined group of which the out-of-state 28
110	110	business may be a part. For purposes of apportioning income, revenue, or receipts, the performance 29
111	111	by an out-of-state business of any work pursuant to this chapter shall not be sourced to or shall not 30
112	112	otherwise impact or increase the amount of income, revenue, or receipts apportioned to this state. 31
113	113	(b) Any out-of-state employee shall not be considered to have established residency or a 32
114	114	presence in the state that would require that person or that person’s employer to file and pay income 33
115	115	taxes or to be subjected to income tax withholdings or to file and pay any other state or local tax or 34
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119	119	fee during the disaster period. This exemption includes any related state or local employer 1
120	120	withholding and remittance obligations. 2
121	121	(c) Out-of-state businesses and out-of-state employees shall be required to pay transaction 3
122	122	taxes and fees including, but not limited to, fuel taxes or sales and use taxes, except use tax on 4
123	123	equipment specified in subsection (a) of this section, hotel taxes, car rental taxes or fees unless such 5
124	124	taxes or fees are otherwise exempted during a disaster period. 6
125	125	(d) Any out-of- state business or out-of-state employee that remains in the state after the 7
126	126	disaster period will become subject to the state’s normal standards for establishing presence, 8
127	127	residency or doing business in the state and will therefore become responsible for any business or 9
128	128	employee tax requirements that ensue. 10
129	129	5-93-5. Administration. 11
130	130	(a) Notification of out-of-state business during disaster period. 12
131	131	(1) The out-of-state business that enters the state shall, upon request, provide to the Rhode 13
132	132	Island emergency management agency a statement that it is in the state for purposes of responding 14
133	133	to the disaster or emergency, which statement shall include the business name, state of domicile, 15
134	134	principal business address, federal tax identification number, date of entry, and contact information. 16
135	135	(2) A registered business in the state shall, upon request, provide the information required 17
136	136	in subsection (a)(1) of this section for any affiliate that enters the state. The notification shall also 18
137	137	include contact information for the registered business in the state. 19
138	138	(b) Notification of intent to remain in state. An out-of-state business or an employee that 20
139	139	remains in the state after the disaster period shall complete state and local registration, licensing 21
140	140	and filing requirements that ensue as a result of establishing the requisite business presence or 22
141	141	residency in the state applicable under the existing rules. 23
142	142	(c) Procedures. The emergency management agency shall promulgate necessary rules and 24
143	143	regulations as well as develop and issue forms or online processes to implement these 25
144	144	administrative procedures. 26
145	145	SECTION 2. This act shall take effect upon passage. 27
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152	152	EXPLANATION
153	153	BY THE LEGISLATIVE COUNCIL
154	154	OF
155	155	A N A C T
156	156	RELATING TO BUSINESSES AND PROFESSIONS -- FACILITATING BUSINESS RAPID
157	157	RESPONSE TO STATE DECLARED DISASTER ACT OF 2023
158	158	***
159	159	This act would provide thresholds for establishing presence, residency or doing business 1
160	160	in the state for out-of-state employees and businesses including affiliates of in-state companies that 2
161	161	temporarily provide resources and personnel in the state during a state of emergency declared by 3
162	162	either the governor or the President of the United States. 4
163	163	This act would take effect upon passage. 5
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