Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0229 Compare Versions

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

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5	5	2023 -- S 0229
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7	7	LC001057
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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 STATE AFFAIRS AND GOVERNMENT -- STAY INVESTED IN RI
16	16	WAVEMAKER FELLOWSHIP
17	17	Introduced By: Senators Pearson, Murray, DiPalma, Gallo, and Cano
18	18	Date Introduced: February 16, 2023
19	19	Referred To: Senate Finance
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Sections 42-64.26-3, 42-64.26-5, 42-64.26-8 and 42-64.26-12 of the General 1
24	24	Laws in Chapter 42-64.26 entitled "Stay Invested in RI Wavemaker Fellowships" are hereby 2
25	25	amended to read as follows: 3
26	26	42-64.26-3. Definitions. 4
27	27	As used in this chapter: 5
28	28	(1) “Applicant” means an eligible graduate who applies for a tax credit for education loan 6
29	29	repayment expenses under this chapter. 7
30	30	(2) “Award” means a tax credit awarded by the commerce corporation to an applicant as 8
31	31	provided under this chapter. 9
32	32	(3) “Business” means any corporation, state bank, federal savings bank, trust company, 10
33	33	national banking association, bank holding company, loan and investment company, mutual 11
34	34	savings bank, credit union, building and loan association, insurance company, partnership, sole 12
35	35	proprietorship, or federal agency or subsidiaries thereof. 13
36	36	(3)(4) “Commerce corporation” means the Rhode Island commerce corporation established 14
37	37	pursuant to chapter 64 of this title. 15
38	38	(5) “Eligible high-demand STEM teacher” means a full-time content area teacher 16
39	39	employed by a Rhode Island local education agency and satisfying criteria proposed by the Rhode 17
40	40	Island commissioner of education in consultation with the commerce corporation and approved by 18
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44	44	the commerce corporation, which at a minimum shall include provisions regarding minimum 1
45	45	instructional hours and qualifying high-demand STEM subject areas. 2
46	46	(4)(6) “Eligibility period” means a term of up to four (4) consecutive service periods 3
47	47	beginning with the date that an eligible graduate receives initial notice of award under this chapter 4
48	48	and expiring at the conclusion of the fourth service period after such date specified. 5
49	49	(5)(7) “Eligibility requirements” means the following qualifications or criteria required for 6
50	50	an applicant to claim an award under this chapter (i) That that the applicant shall have graduated 7
51	51	from an accredited two-year (2), four-year (4) or graduate postsecondary institution of higher 8
52	52	learning with an associate’s, bachelor’s, graduate, or post-graduate degree and at which the 9
53	53	applicant incurred education loan repayment expenses, and be either: 10
54	54	(ii)(i) A That the applicant shall be a full-time employee with a Rhode Island-based 11
55	55	employer located in this state throughout the eligibility period, whose employment is for work in 12
56	56	one or more of the following covered fields: life, natural or environmental sciences; computer, 13
57	57	information or software technology; advanced mathematics or finance; engineering; industrial 14
58	58	design or other commercially related design field; or medicine or medical device technology; or 15
59	59	(ii) A full-time employee that is a teacher or an eligible high-demand STEM teacher. 16
60	60	(6)(8) “Eligible expenses” or “education loan repayment expenses” means annual higher 17
61	61	education loan repayment expenses, including, without limitation, principal, interest and fees, as 18
62	62	may be applicable, incurred by an eligible graduate and which the eligible graduate is obligated to 19
63	63	repay for attendance at a postsecondary institution of higher learning. 20
64	64	(7)(9) “Eligible graduate” means an individual who meets the eligibility requirements 21
65	65	under this chapter. 22
66	66	(8)(10) “Full-time employee” means a person who is employed by a business as a teacher 23
67	67	or an eligible high-demand STEM teacher as defined herein for consideration for a minimum of at 24
68	68	least thirty-five (35) hours per week, or who renders any other standard of service generally 25
69	69	accepted by custom or practice as full-time employment, or who is employed by a professional 26
70	70	employer organization pursuant to an employee leasing agreement between the business and the 27
71	71	professional employer organization for a minimum of thirty-five (35) hours per week, or who 28
72	72	renders any other standard of service generally accepted by custom or practice as full-time 29
73	73	employment, and whose earnings are subject to state income tax and whose wages are subject to 30
74	74	withholding. 31
75	75	(9)(11) “Healthcare applicant” means any applicant who meets the eligibility requirements 32
76	76	and works as a full-time employee as a high-demand healthcare practitioner or mental health 33
77	77	professional, including, but not limited to, clinical social workers and mental health counselors 34
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81	81	licensed by the department of health, and as defined in regulations to be promulgated by the 1
82	82	commerce corporation, in consultation with the executive office of health and human services, 2
83	83	pursuant to chapter 35 of this title. 3
84	84	(10)(12) “Healthcare fund” refers to the “Healthcare Stay Invested in RI Wavemaker 4
85	85	Fellowship Fund” established pursuant to § 42-64.26-4(b). 5
86	86	(13) “Local education agency” means a public school board of education/school committee 6
87	87	or other public authority legally constituted within the state for either administrative control or 7
88	88	direction of one or more public elementary schools or secondary schools, or a regional school 8
89	89	district, state-operated school, regional collaboration, and charter school or mayoral academy. 9
90	90	(11)(14) “Rhode Island-based employer” means: (i) An employer having a principal place 10
91	91	of business or at least fifty-one percent (51%) of its employees located in this state; or (ii) An 11
92	92	employer registered to conduct business in this state that reported Rhode Island tax liability in the 12
93	93	previous tax year. 13
94	94	(12)(15) “Service period” means a twelve-month (12) period beginning on the date that an 14
95	95	eligible graduate receives initial notice of award under this chapter. 15
96	96	(13)(16) “STEM/design fund” refers to the “Stay Invested in RI Wavemaker Fellowship 16
97	97	Fund” established pursuant to § 42-64.26-4(a). 17
98	98	(14)(17) “Student loan” means a loan to an individual by a public authority or private lender 18
99	99	to assist the individual to pay for tuition, books, and living expenses in order to attend a 19
100	100	postsecondary institution of higher learning. 20
101	101	(15)(18) “Taxpayer” means an applicant who receives a tax credit under this chapter. 21
102	102	42-64.26-5. Administration. 22
103	103	(a) Application. An eligible graduate claiming an award under this chapter shall submit to 23
104	104	the commerce corporation an application in the manner that the commerce corporation shall 24
105	105	prescribe. 25
106	106	(b) Upon receipt of a proper application from an applicant who meets all of the eligibility 26
107	107	requirements, the commerce corporation shall select applicants on a competitive basis to receive 27
108	108	credits for up to a maximum amount for each service period of one thousand dollars ($1,000) for 28
109	109	an associate’s degree holder, four thousand dollars ($4,000) for a bachelor’s degree holder, and six 29
110	110	thousand dollars ($6,000) for a graduate or post-graduate degree holder, but not to exceed the 30
111	111	education loan repayment expenses incurred by such taxpayer during each service period 31
112	112	completed, for up to four (4) consecutive service periods provided that the taxpayer continues to 32
113	113	meet the eligibility requirements throughout the eligibility period. The commerce corporation shall 33
114	114	delegate the selection of the applicants that are to receive awards to a one or more fellowship 34
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118	118	committee or committees to be convened by the commerce corporation and promulgate the 1
119	119	selection procedures the fellowship committee or committees will use, which procedures shall 2
120	120	require that the committee’s consideration of applications be conducted on a name-blind and 3
121	121	employer-blind basis and that the applications and other supporting documents received or 4
122	122	reviewed by the fellowship committee or committees shall be redacted of the applicant’s name, 5
123	123	street address, and other personally-identifying information as well as the applicant’s employer’s 6
124	124	name, street address, and other employer-identifying information. The commerce corporation shall 7
125	125	determine the composition of the fellowship committee or committees and the selection procedures 8
126	126	it will use in consultation with the state’s chambers of commerce or the state department of 9
127	127	education as appropriate. Notwithstanding the foregoing, the commerce corporation shall create 10
128	128	and establish a committee to evaluate any healthcare applicant for an award in the same manner as 11
129	129	prescribed in this subsection. The executive office of health and human services (“EOHHS”) shall 12
130	130	be represented on the committee and provide consultation to the commerce corporation on selection 13
131	131	procedures. Notwithstanding EOHHS’s consultation and representation in the selection of 14
132	132	healthcare applicants, the commerce corporation shall administer all other aspects of a healthcare 15
133	133	applicant’s application, award, and certification. 16
134	134	(c) The credits awarded under this chapter shall not exceed one hundred percent (100%) of 17
135	135	the education loan repayment expenses incurred by such taxpayer during each service period 18
136	136	completed for up to four (4) consecutive service periods. Tax credits shall be issued annually to the 19
137	137	taxpayer upon proof that (i) The taxpayer has actually incurred and paid such education loan 20
138	138	repayment expenses; (ii) The taxpayer continues to meet the eligibility requirements throughout 21
139	139	the service period; (iii) The award shall not exceed the original loan amount plus any capitalized 22
140	140	interest less award previously claimed under this section; and (iv) The taxpayer claiming an award 23
141	141	is current on his or her student loan repayment obligations. 24
142	142	(d) In consultation with the department of education, and the department of health, the 25
143	143	commerce corporation shall set guidelines for the proportion of awards to be made to eligible 26
144	144	teachers, high-demand STEM teachers and licensed health care professionals. 27
145	145	(d)(e) The commerce corporation shall not commit to overall STEM/design awards in 28
146	146	excess of the amount contained in the STEM/design fund or to overall healthcare awards in excess 29
147	147	of the amount contained in the healthcare fund. 30
148	148	(e)(f) The commerce corporation shall reserve seventy percent (70%) of the awards issued 31
149	149	in a calendar year to applicants who are permanent residents of the state of Rhode Island or who 32
150	150	attended an institution of higher education located in Rhode Island when they incurred the 33
151	151	education loan expenses to be repaid. 34
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155	155	(f)(g) In administering award, the commerce corporation shall: 1
156	156	(1) Require suitable proof that an applicant meets the eligibility requirements for award 2
157	157	under this chapter; 3
158	158	(2) Determine the contents of applications and other materials to be submitted in support 4
159	159	of an application for award under this chapter; and 5
160	160	(3) Collect reports and other information during the eligibility period for each award to 6
161	161	verify that a taxpayer continues to meet the eligibility requirements for an award. 7
162	162	42-64.26-8. Carry forward and redemption of tax credits. 8
163	163	(a) If the amount of the tax credit allowed under this chapter exceeds the taxpayer’s total 9
164	164	tax liability for the year in which the credit is allowed, the amount of such credit that exceeds the 10
165	165	taxpayer’s tax liability may be carried forward and applied against the taxes imposed for the 11
166	166	succeeding four (4) years, or until the full credit is used, whichever occurs first. 12
167	167	(b) The tax credit allowed under this chapter may be used as a credit against personal 13
168	168	income taxes imposed under chapter 30 of title 44. 14
169	169	(c) The division of taxation shall at the request of a taxpayer redeem such credits in whole 15
170	170	or in part for one hundred percent (100%) of the value of the tax credit. 16
171	171	(d) Any award issued made pursuant to this chapter after January 1, 2021, shall be exempt 17
172	172	from taxation under title 44 of the General Laws. 18
173	173	42-64.26-12. Sunset. 19
174	174	No incentives or credits shall be authorized pursuant to this chapter after December 31, 20
175	175	2023 2024. 21
176	176	SECTION 2. This act shall take effect upon passage and shall sunset on December 31, 22
177	177	2024. 23
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184	184	EXPLANATION
185	185	BY THE LEGISLATIVE COUNCIL
186	186	OF
187	187	A N A C T
188	188	RELATING TO STATE AFFAIRS AND GOVERNMENT -- STAY INVESTED IN RI
189	189	WAVEMAKER FELLOWSHIP
190	190	***
191	191	This act would expand the Wavemaker Fellowship Program to include public school 1
192	192	teachers, including public school teachers in the high-needs fields of science, technology, 2
193	193	engineering and mathematics, as well as health care professionals license by the department of 3
194	194	health. 4
195	195	This act would take effect upon passage and would sunset on December 31 2024. 5
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