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