Rhode Island 2023 Regular Session

Rhode Island House Bill H6004 Compare Versions

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

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5	5	2023 -- H 6004
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7	7	LC002383
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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 PUBLIC FINANCE -- STATE FUNDS
16	16	Introduced By: Representatives Slater, Diaz, Sanchez, and Hull
17	17	Date Introduced: March 01, 2023
18	18	Referred To: House Finance
19	19	(City of Providence)
20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 35-4-1 of the General Laws in Chapter 35-4 entitled "State Funds" is 1
23	23	hereby amended to read as follows: 2
24	24	35-4-1. Revenue credited to general fund — Exceptions — Deposits. 3
25	25	All receipts and revenue of the state shall be credited by the general treasurer to the general 4
26	26	fund of the state with the exception of receipts or revenue pertaining to the following funds: 5
27	27	(1) Permanent school fund; 6
28	28	(2) Touro Jewish synagogue fund; 7
29	29	(3) Land-grant fund of 1862; 8
30	30	(4) Veterans’ home fund; 9
31	31	(5) United States cooperative vocational education fund; 10
32	32	(6) United States industrial rehabilitation fund; 11
33	33	(7) Forestry cooperative fund; 12
34	34	(8) State sinking fund; 13
35	35	(9) Fire insurance fund; 14
36	36	(10) Fund for relief of firemen; 15
37	37	(11) Fund for relief of policemen; 16
38	38	(12) Coastal Resources Management Council Dredge Fund; 17
39	39	(13) Funds received from the federal government in accordance with the provisions of parts 18
40	40	1 and 2 of title V of the Social Security Act, 42 U.S.C. § 501 et seq.; 19
41	41
42	42
43	43	LC002383 - Page 2 of 7
44	44	(14) Any other funds that may by federal law or regulation, or by enactment of the general 1
45	45	assembly, be allocated to a specific fund, provided, that nothing contained in this section shall 2
46	46	amend or modify: § 19-3.1-9, which pertains to securities deposited by trust companies and national 3
47	47	banks having trust departments; § 19-5-15, which pertains to credit unions; nor § 27-1-5, which 4
48	48	pertains to deposits of securities by insurance companies with the general treasurer; and 5
49	49	(15) Funds received until June 30, 2002, from the northeast dairy compact commission, 6
50	50	which was enacted into law in Rhode Island by P.L. 1993, ch. 106, § 2-24-1 et seq. These funds 7
51	51	are to be passed from the northeast dairy compact commission through the department of 8
52	52	elementary and secondary education to reimburse school districts for school milk that is exempted 9
53	53	from the federal over-order price regulation obligation at 7 CFR 1301. These funds are to be placed 10
54	54	in a restricted receipt account established within the department of elementary and secondary 11
55	55	education separate from all other accounts within the department of elementary and secondary 12
56	56	education. All funds deposited in the restricted receipt account established in this section shall be 13
57	57	disbursed prior to June 30, 2002; and 14
58	58	(16) State withholding taxes received by the director of revenue beginning July 1, 2023 15
59	59	which shall be remitted to the city of Providence pursuant to chapter 71 of title 44. 16
60	60	SECTION 2. Section 45-13-1 of the General Laws in Chapter 45-13 entitled "State Aid" is 17
61	61	hereby amended to read as follows: 18
62	62	45-13-1. Apportionment of annual appropriation for state aid. 19
63	63	(a) As used in this chapter, the following words and terms have the following meanings: 20
64	64	(1) “Income” means the most recent estimate of per-capita income for a city, town or 21
65	65	county as reported by the United States Department of Commerce, Bureau of the Census. 22
66	66	(2) “Population” means the most recent estimates of population for each city and town as 23
67	67	reported by the United States Department of Commerce, Bureau of the Census. 24
68	68	(3) “Reference year” means the second fiscal year preceding the beginning of the fiscal 25
69	69	year in which the distribution of state aid to cities and towns is made provided however that the 26
70	70	reference year for distributions made in fiscal year 2007-2008 shall be the third fiscal year 27
71	71	preceding the beginning of the fiscal year 2007-2008 and provided further that the reference year 28
72	72	for distributions made in fiscal year 2008-2009 shall be the fourth fiscal year preceding the 29
73	73	beginning of the fiscal year 2008-2009. 30
74	74	(4) “Tax effort” means the total taxes imposed by a city or town for public purposes or the 31
75	75	totals of those taxes for the cities or towns within a county (except employee and employer 32
76	76	assessments and contributions to finance retirement and social insurance systems and other special 33
77	77	assessments for capital outlay) determined by the United States Secretary of Commerce for general 34
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79	79
80	80	LC002383 - Page 3 of 7
81	81	statistical purposes and adjusted to exclude amounts properly allocated to education expenses. 1
82	82	(b) Aid to cities and towns shall be apportioned as follows: For each county, city or town, 2
83	83	let R be the tax effort divided by the square of per capita income, i.e., R = (tax effort)/(income x 3
84	84	income). 4
85	85	The amount to be allocated to the counties shall be apportioned in the ratio of the value of 5
86	86	R for each county divided by the sum of the values of R for all five (5) counties. 6
87	87	The amount to be allocated for all cities and for all towns within a county shall be the 7
88	88	allocation for that county apportioned proportionally to the total tax effort of the towns and cities 8
89	89	in that county. 9
90	90	The amount to be allocated to any city or town is the amount allocated to all cities or all 10
91	91	towns within the county apportioned in the ratio of the value of R for that city (or town) divided by 11
92	92	the sum of the values of R for all cities (or all towns) in that county; provided, further, that no city 12
93	93	or town shall receive an entitlement in excess of one hundred forty-five percent (145%) of that city 13
94	94	or town’s population multiplied by the average per capita statewide amount of the annual 14
95	95	appropriation for state aid to cities and towns. Any excess entitlement shall be allocated to the 15
96	96	remainder of the cities and towns in the respective county in accordance with the provisions of this 16
97	97	section. 17
98	98	For fiscal year 2004, notwithstanding the provisions of subsection (a), aid calculations shall 18
99	99	be based on a blended rate of ninety percent (90%) of the data from the 1990 census and ten percent 19
100	100	(10%) of the data from the 2000 census. In each of the succeeding nine (9) fiscal years, the 20
101	101	calculations shall be based on a blended rate that increases the percentage of data utilized from the 21
102	102	2000 census by ten percent (10%) from the previous year and decreases the percentage of the data 22
103	103	utilized from the 1990 census by ten percent (10%) from the previous year. 23
104	104	(c) The total amount of aid to be apportioned pursuant to subsection (b) above shall be 24
105	105	specified in the annual appropriation act of the state and shall be equal to the following: 25
106	106	(1) For fiscal years ending June 30, 1994 through June 30, 1998, the total amount of aid 26
107	107	shall be based upon one percent (1%) of total state tax revenues in the reference year. 27
108	108	(2) For the fiscal year ending June 30, 1999, the total amount of aid shall be based upon 28
109	109	one and three-tenths percent (1.3%) of total state tax revenues in the reference year. 29
110	110	(3) For the fiscal year ending June 30, 2000, the total amount of aid shall be based upon 30
111	111	one and seven-tenths percent (1.7%) of total state tax revenues in the reference year. 31
112	112	(4) For the fiscal year ending June 30, 2001, the total amount of aid shall be based upon 32
113	113	two percent (2.0%) of total state tax revenues in the reference year. 33
114	114	(5) For the fiscal year ending June 30, 2002, the total amount of aid shall be based upon 34
115	115
116	116
117	117	LC002383 - Page 4 of 7
118	118	two and four-tenths percent (2.4%) of total state tax revenues in the reference year. 1
119	119	(6) For the fiscal year ending June 30, 2003, the total amount of aid shall be based upon 2
120	120	two and four-tenths percent (2.4%) of total state tax revenues in the reference year. 3
121	121	(7) For the fiscal year ending June 30, 2004, the total amount of aid shall be based upon 4
122	122	two and seven-tenths percent (2.7%) of total state tax revenues in the reference year. 5
123	123	(8) For the fiscal year ending June 30, 2005, the total amount of aid shall be fifty-two 6
124	124	million four hundred thirty-eight thousand five hundred thirty-two dollars ($52,438,532). 7
125	125	(9) For the fiscal year ending June 30, 2006, the total amount of aid shall be based upon 8
126	126	three percent (3%) of total state tax revenues in the reference year. 9
127	127	(10) For the fiscal year ending June 30, 2007 the total amount of aid shall be sixty-four 10
128	128	million six hundred ninety-nine thousand three dollars ($64,699,003). 11
129	129	(11) For the fiscal year ending June 30, 2008, the total amount of aid shall be sixty-four 12
130	130	million six hundred ninety-nine thousand three dollars ($64,699,003). 13
131	131	(12) [Deleted by P.L. 2009, ch. 68, art. 6, section 3.] 14
132	132	(13) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.] 15
133	133	(14) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.] 16
134	134	(d) For the fiscal year ending June 30, 2008 the apportionments of state aid as derived 17
135	135	through the calculations as required by subsections (a) through (c) of this section shall be adjusted 18
136	136	downward statewide by ten million dollars ($10,000,000). 19
137	137	(e) For the fiscal year ending June 30, 2009, the total amount of aid shall be twenty-five 20
138	138	million dollars ($25,000,000) with such distribution allocated proportionately on the same basis as 21
139	139	the original enactment of general revenue sharing of FY 2009. 22
140	140	(f) For the fiscal year ending June 30, 2009 and thereafter, funding shall be determined by 23
141	141	appropriation; provided, however that, no portion of the state income tax paid to the city of 24
142	142	Providence pursuant to chapter 71 of title 44 shall be considered part of an appropriation or 25
143	143	allocation to the city of Providence under this chapter, but shall be considered a separate allocation 26
144	144	to the city of Providence. 27
145	145	SECTION 3. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 28
146	146	adding thereto the following chapter: 29
147	147	CHAPTER 71 30
148	148	CITY OF PROVIDENCE - TRANSFER OF PORTION OF STATE INCOME TAXES OF NEW 31
149	149	EMPLOYEES OF NOT-FOR-PROFIT HEALTHCARE INSTITUTIONS AND 32
150	150	INSTITUTIONS OF HIGHER EDUCATI ON 33
151	151	44-71-1. Definitions. 34
152	152
153	153
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155	155	As used in this chapter, unless the context clearly indicates otherwise: 1
156	156	(1) "City" means the city of Providence. 2
157	157	(2) "Director" means the director of the state division of taxation. 3
158	158	(3) "Educational institution" means any not-for-profit provider of higher education, 4
159	159	including, but not limited to, private colleges and universities. 5
160	160	(4) "Healthcare institution" means any facility or campus providing not-for-profit 6
161	161	healthcare services, including, but not limited to, hospitals and other licensed inpatient centers, 7
162	162	ambulatory surgical or treatment centers, skilled nursing centers, residential treatment centers, 8
163	163	convalescent, extended care and rehabilitation facilities, health maintenance organizations, health 9
164	164	clinics, freestanding emergency rooms, diagnostic, laboratory and imaging centers, visiting nurses' 10
165	165	associations, or other therapeutic health settings. 11
166	166	(5) "Health service corporation" means any not-for-profit entity formed for purposes 12
167	167	including, but not limited to, establishing, maintaining managing and operating a health care 13
168	168	system, service, network or plan, for conducting scientific or medical research, and/or for training 14
169	169	health care providers and researchers. 15
170	170	(6) "Initial employment level" means for the tax year January 1, 2022 to December 31, 16
171	171	2022, the aggregate and average numbers of persons employed by the institution for whom state 17
172	172	income taxes were withheld and reported to and/or paid to the division of taxation. 18
173	173	(7) "Institution" or "institutions" means collectively not-for-profit healthcare institutions, 19
174	174	health service corporations, and educational institution as defined in this section. 20
175	175	(8) "New employee" or "new employment" means for each calendar year beginning 21
176	176	January 1, 2023, the number of persons employed by the institution during that year, over and above 22
177	177	the number of employees reported as the initial employment level, and for whom state income taxes 23
178	178	were withheld by an institution and submitted and/or paid to the division of taxation. 24
179	179	(9) "Not-for-profit corporation" means a legal entity, whether a corporation, partnership or 25
180	180	other such entity, formed for some charitable or benevolent purpose and not-for-profit which has 26
181	181	been exempted from taxation pursuant to the general laws or Internal Revenue Code§ 50l(c)(3), 26 27
182	182	U.S.C.§ 50l(c)(3). 28
183	183	44-71-2. Procedures. 29
184	184	(a) No later than July 30, 2023, all institutions defined in § 44-71-1 shall provide to the 30
185	185	director, the initial employment level for the institution for the calendar year 2022, and the total 31
186	186	amount of state income taxes withheld from the payroll and provided to the state department of 32
187	187	revenue for the aggregate number of employees for the calendar year 2022. A copy of the 33
188	188	information shall at the same time be provided to the chief financial officer of the city of 34
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192	192	Providence. 1
193	193	(b) No later than December 31, 2023, each institution shall provide the director and the 2
194	194	chief financial officer of the city of Providence with the following: 3
195	195	(1) The aggregate number of new employees for the period January 1, 2023 through 4
196	196	December 31, 2023 for whom state income taxes were withheld and submitted to the state 5
197	197	department of revenue; and 6
198	198	(2) The total amount of annual state income taxes submitted to the division of taxation for 7
199	199	all new employees. 8
200	200	(c) No later than December 31 of each subsequent calendar year, each institution shall 9
201	201	provide the director and the chief financial officer of the city of Providence with the following: 10
202	202	(1) The aggregate number of new employees for the individual calendar year; and 11
203	203	(2) The total amount of annual state income taxes submitted to the division of taxation for 12
204	204	all new employees for the individual calendar year, including estimated state taxes; and 13
205	205	(3) The total aggregate number of employees for all calendar years since the initial 14
206	206	reporting period; and 15
207	207	(4) The total amount of annual state income taxes submitted to the division of taxation, 16
208	208	including estimated state taxes, for the total aggregate number of employees for all calendar years 17
209	209	since the initial reporting period. 18
210	210	(d) All data provided to the director and the chief financial officer of the city of Providence 19
211	211	shall be signed by the person compiling the data and the person authorized to sign on behalf of the 20
212	212	corporation. 21
213	213	(e) No later than September 1 of each fiscal year beginning with fiscal year 2023, the state 22
214	214	shall remit or transfer to the treasurer for the city of Providence an amount representing twenty-23
215	215	five percent (25%) of the state income taxes of the aggregate number of total new employees since 24
216	216	the initial reporting period. 25
217	217	SECTION 4. This act shall take effect upon passage. 26
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224	224	EXPLANATION
225	225	BY THE LEGISLATIVE COUNCIL
226	226	OF
227	227	A N A C T
228	228	RELATING TO PUBLIC FINANCE -- STATE FUNDS
229	229	***
230	230	This act would allocate, to the city of Providence, a portion of state income taxes for new 1
231	231	employees of not-for-profit healthcare institutions and private educational institutions in order to 2
232	232	assist Providence ability to absorb desirable and necessary growth in such institutions. 3
233	233	This act would take effect upon passage. 4
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