Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0921 Compare Versions

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

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2025 -- S 0921
6	6	========
7	7	LC002642
8	8	========
9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMM ERCE
16	16	CORPORATION -- QUALIFIED DATA CENTERS LOCATION INCENTIVE
17	17	Introduced By: Senator Louis P. DiPalma
18	18	Date Introduced: March 28, 2025
19	19	Referred To: Senate Commerce
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 42-64-3 of the General Laws in Chapter 42-64 entitled "Rhode Island 1
24	24	Commerce Corporation" is hereby amended to read as follows: 2
25	25	42-64-3. Definitions. 3
26	26	As used in this chapter, the following words and terms shall have the following meanings, 4
27	27	unless the context indicates another or different meaning or intent: 5
28	28	(1) “Administrative penalty” means a monetary penalty not to exceed the civil penalty 6
29	29	specified in § 42-64-9.2. 7
30	30	(2) “Airport facility” means developments consisting of runways, hangars, control towers, 8
31	31	ramps, wharves, bulkheads, buildings, structures, parking areas, improvements, facilities, or other 9
32	32	real or personal property necessary, convenient, or desirable for the landing, taking off, 10
33	33	accommodation, and servicing of aircraft of all types, operated by carriers engaged in the 11
34	34	transportation of passengers or cargo, or for the loading, unloading, interchange, or transfer of the 12
35	35	passengers or their baggage, or the cargo, or otherwise for the accommodation, use or convenience 13
36	36	of the passengers or the carriers or their employees (including related facilities and 14
37	37	accommodations at sites removed from landing fields and other landing areas), or for the landing, 15
38	38	taking off, accommodation, and servicing of aircraft owned or operated by persons other than 16
39	39	carriers. It also means facilities providing access to an airport facility, consisting of rail, rapid 17
40	40	transit, or other forms of mass transportation which furnish a connection between the air terminal 18
41	41
42	42
43	43	LC002642 - Page 2 of 15
44	44	and other points within the state, including appropriate mass transportation terminal facilities at 1
45	45	and within the air terminal itself and suitable offsite facilities for the accommodation of air 2
46	46	passengers, baggage, mail, express, freight, and other users of the connecting facility. 3
47	47	(3) “BOCA code” means the BOCA basic building code published By Building Officials 4
48	48	and Code Administrators International, Inc., as the code may from time to time be promulgated by 5
49	49	the Building Officials and Code Administrators International, Inc. 6
50	50	(4) “Bonds” and “notes” means the bonds, notes, securities, or other obligations or 7
51	51	evidences of indebtedness issued by the corporation pursuant to this chapter, all of which shall be 8
52	52	issued under the name of and known as obligations of the “Rhode Island commerce corporation.” 9
53	53	(5) “Civic facility” means any real or personal property designed and intended for the 10
54	54	purpose of providing facilities for educational, cultural, community, or other civic purposes. 11
55	55	(6) "Colocation tenant" means a person that contracts with the owner or operator of a 12
56	56	qualified data center to use or occupy all or part of a qualified data center for a period of at least 13
57	57	two (2) years. 14
58	58	(6)(7) “Compliance schedule” means a schedule of remedial measures including an 15
59	59	enforceable sequence of actions or operations leading to compliance with an effluent limitation or 16
60	60	any other limitation, prohibition, or standard. 17
61	61	(7)(8) “Corporation,” “port authority,” or “authority” means the governmental agency and 18
62	62	public instrumentality, formerly known as the “Rhode Island port authority and economic 19
63	63	development corporation” and/or also formerly known as the “Rhode Island economic development 20
64	64	corporation,” and now known as the Rhode Island commerce corporation authorized, created, and 21
65	65	established pursuant to § 42-64-4, or any subsidiary corporation thereof which is established 22
66	66	pursuant to § 42-64-7.1. 23
67	67	(8)(9) “Director” means the executive director of the economic development corporation 24
68	68	until such time that the secretary of commerce is appointed. Upon the appointment of a secretary 25
69	69	of commerce, “Director” means the chief executive officer of the Rhode Island commerce 26
70	70	corporation, who shall also be the secretary of the Rhode Island executive office of commerce. 27
71	71	(10) “Eligible qualified data center costs” means expenditures made on or after July 1, 28
72	72	2025, for the development, acquisition, construction, rehabilitation, including wages pursuant to § 29
73	73	39-26.9-5 for any direct and indirect qualified licensed labor for construction and installation of 30
74	74	data center equipment, renovation, repair or operation of a facility to be used as a qualified data 31
75	75	center, including the cost of land, buildings, site characterization and assessment, engineering 32
76	76	services, design services and data center equipment acquisitions. “Eligible qualified data center 33
77	77	costs” does not include expenditures made in connection with real or personal property that is 34
78	78
79	79
80	80	LC002642 - Page 3 of 15
81	81	located outside the boundaries of the facility to be used as a qualified data center; 1
82	82	(11) “Enterprise information technology equipment” means: 2
83	83	(i) Hardware that support computing, networking or data storage functions, including 3
84	84	servers and routers; 4
85	85	(ii) Networking systems equipment that support computing, networking or data storage 5
86	86	functions and have an industry designation as equipment within the enterprise class or data center 6
87	87	class of networking systems; and 7
88	88	(iii) Generators and other equipment used to ensure an uninterrupted power supply for the 8
89	89	hardware and networking systems equipment. 9
90	90	(12) “Facility” means one or more contiguous tracts of land in the state and any structure 10
91	91	and person property contained on such land. 11
92	92	(9)(13) “Federal land” means real property within the state, now acquired or hereafter 12
93	93	acquired by the Rhode Island commerce corporation which was formerly owned by the United 13
94	94	States government, or any agency or instrumentality thereof, including without limiting the 14
95	95	generality of the foregoing, any and all real property now or formerly owned or used by the United 15
96	96	States government in the towns of North Kingstown, Portsmouth, Middletown, and Charlestown 16
97	97	and the city of Newport as military installations or for other purposes related to the national defense. 17
98	98	Without limiting the generality of the foregoing, federal land shall also mean and include certain 18
99	99	land in the town of North Kingstown, or any portion thereof, which has or shall revert to the state 19
100	100	pursuant to the provisions of Public Laws 1939, chapter 696 and is now or hereafter acquired by 20
101	101	the corporation from the state. 21
102	102	(10)(14) “Industrial facility” means any real or personal property, the demolition, removal, 22
103	103	relocation, acquisition, expansion, modification, alteration, or improvement of existing buildings, 23
104	104	structures, or facilities, the construction of new buildings, structures, or facilities, the replacement, 24
105	105	acquisition, modification, or renovation of existing machinery and equipment, or the acquisition of 25
106	106	new machinery and equipment, or any combination of the United States, which shall be suitable 26
107	107	for manufacturing, research, production, processing, agriculture, and marine commerce, or 27
108	108	warehousing; or convention centers, trade centers, exhibition centers, or offices (including offices 28
109	109	for the government of the United States or any agency, department, board, bureau, corporation, or 29
110	110	other instrumentality of the United States, or for the state or any state agency, or for any 30
111	111	municipality); or facilities for other industrial, commercial, or business purposes of every type and 31
112	112	description; and facilities appurtenant or incidental to the foregoing, including headquarters or 32
113	113	office facilities, whether or not at the location of the remainder of the facility, warehouses, 33
114	114	distribution centers, access roads, sidewalks, utilities, railway sidings, trucking, and similar 34
115	115
116	116
117	117	LC002642 - Page 4 of 15
118	118	facilities, parking areas, waterways, dockage, wharfage, and other improvements necessary or 1
119	119	convenient for the construction, development, maintenance, and operation of those facilities. 2
120	120	(11)(15) “Local governing body” means any town or city council, commission, or other 3
121	121	elective governing body now or hereafter vested by state statute, charter, or other law, with 4
122	122	jurisdiction to initiate and adopt local ordinances, whether or not these local ordinances require the 5
123	123	approval of the elected or appointed chief executive officer or other official or body to become 6
124	124	effective. 7
125	125	(12)(16) “Local redevelopment corporation” means any agency or corporation created and 8
126	126	existing pursuant to the provisions of chapter 31 of title 45. 9
127	127	(13)(17) “Municipality” means any city or town within the state now existing or hereafter 10
128	128	created, or any state agency. 11
129	129	(18) “Operator” means a person that contracts with the owner of a qualified data center to 12
130	130	operate such a qualified data center. 13
131	131	(19) “Owner” means a person that holds a leasehold estate in excess of fifty (50) years or 14
132	132	a fee title to a facility. 15
133	133	(14)(20) “Parent corporation” means, when used in connection with a subsidiary 16
134	134	corporation established pursuant to § 42-64-7.1, the governmental agency and public 17
135	135	instrumentality created and established pursuant to § 42-64-4. 18
136	136	(21) “Person” means an individual, an estate, a trust, a receiver, a cooperative association, 19
137	137	a corporation, a company, a firm, a partnership, a limited partnership, a limited liability company, 20
138	138	a limited liability partnership or a joint venture. 21
139	139	(15)(22) “Personal property” means all tangible personal property, new or used, including, 22
140	140	without limiting the generality of the foregoing, all machinery, equipment, transportation 23
141	141	equipment, ships, aircraft, railroad rolling stock, locomotives, pipelines, and all other things and 24
142	142	rights usually included within that term. “Personal property” also means and includes any and all 25
143	143	interests in the property which are less than full title, such as leasehold interests, security interests, 26
144	144	and every other interest or right, legal or equitable. 27
145	145	(16)(23) “Pollutant” means any material or effluent which may alter the chemical, physical, 28
146	146	biological or radiological characteristics or integrity of water, including but not limited to, dredged 29
147	147	spoil, solid waste, incinerator residue, sewage, garbage, sewage sludge, munitions, chemical 30
148	148	wastes, biological materials, radioactive materials, heat, wrecked or discarded equipment, cellar 31
149	149	dirt, or industrial, municipal, agricultural or other waste petroleum or petroleum products, 32
150	150	including, but not limited to, oil. 33
151	151	(17)(24) “Pollution” means the discharge of any gaseous, liquid, or solid substance or 34
152	152
153	153
154	154	LC002642 - Page 5 of 15
155	155	combination thereof (including noise) into the air, water, or land which affects the physical, 1
156	156	chemical, or biological properties (including temperature) of the air, water, or land in a manner or 2
157	157	to an extent which renders or is likely to render the air, water, or land harmful or inimical to the 3
158	158	public health, safety, or welfare, or to animal, bird, or aquatic life, or to the use of the air or water 4
159	159	for domestic, industrial, or agricultural purposes or recreation including the man-made or man-5
160	160	induced alteration of the chemical, physical, biological or radiological integrity of water. 6
161	161	(18)(25) “Pollution control facility” means any land or interest in land, the demolition, 7
162	162	removal, relocation, acquisition, expansion, modification, alteration, or improvement of existing 8
163	163	buildings, structures, or facilities, the construction of new buildings, structures, or facilities, the 9
164	164	replacement, modification, or renovation of existing machinery and equipment, or the acquisition 10
165	165	of new machinery and equipment, or any combination thereof, having to do with or the purpose of 11
166	166	which is the abatement, control, or prevention of pollution, including industrial pollution, and all 12
167	167	real and personal property incidental to that facility. 13
168	168	(19)(26) “Port facility” means harbors, ports, and all real and personal property used in 14
169	169	connection therewith, including, but not limited to, waterways, channels, wharves, docks, yards, 15
170	170	bulkheads, slips, basins, pipelines, ships, boats, railroads, trucks, and other motor vehicles, aircraft, 16
171	171	parking areas, shipyards, piers, quays, elevators, compressors, loading and unloading facilities, 17
172	172	storage facilities, and warehouses of every type, buildings and facilities used in the manufacturing, 18
173	173	processing, assembling, storing, or handling of any produce or products, other structures and 19
174	174	facilities necessary for the convenient use of the harbors and seaports, including dredged 20
175	175	approaches, railways, railroad terminals, side tracks, airports, roads, highways, tunnels, viaducts, 21
176	176	bridges, and other approaches, useful in connection therewith, and any other shipping or 22
177	177	transportation facility useful in the operation of a port or harbor. 23
178	178	(20)(27) “Project” or “port project” means the acquisition, ownership, operation, 24
179	179	construction, reconstruction, rehabilitation, improvement, development, sale, lease, or other 25
180	180	disposition of, or the provision of financing for, any real or personal property (by whomever owned) 26
181	181	or any interests in real or personal property, including without limiting the generality of the 27
182	182	foregoing, any port facility, recreational facility, industrial facility, airport facility, pollution control 28
183	183	facility, utility facility, solid waste disposal facility, civic facility, residential facility, water supply 29
184	184	facility, energy facility or renewable energy facility, or any other facility, or any combination of 30
185	185	two (2) or more of the foregoing, or any other activity undertaken by the corporation. 31
186	186	(21)(28) “Project cost” means the sum total of all costs incurred by the Rhode Island 32
187	187	commerce corporation in carrying out all works and undertakings, which the corporation deems 33
188	188	reasonable and necessary for the development of a project. These shall include, but are not 34
189	189
190	190
191	191	LC002642 - Page 6 of 15
192	192	necessarily limited to, the costs of all necessary studies, surveys, plans, and specifications, 1
193	193	architectural, engineering, or other special services, acquisition of land and any buildings on the 2
194	194	land, site preparation and development, construction, reconstruction, rehabilitation, improvement, 3
195	195	and the acquisition of any machinery and equipment or other personal property as may be deemed 4
196	196	necessary in connection with the project (other than raw materials, work in process, or stock in 5
197	197	trade); the necessary expenses incurred in connection with the initial occupancy of the project; an 6
198	198	allocable portion of the administrative and operating expenses of the corporation; the cost of 7
199	199	financing the project, including interest on all bonds and notes issued by the corporation to finance 8
200	200	the project from the date thereof to one year from the date when the corporation shall deem the 9
201	201	project substantially occupied; and the cost of those other items, including any indemnity or surety 10
202	202	bonds and premiums on insurance, legal fees, real estate brokers and agent fees, fees and expenses 11
203	203	of trustees, depositories, and paying agent for bonds and notes issued by the Rhode Island 12
204	204	commerce corporation, including reimbursement to any project user for any expenditures as may 13
205	205	be allowed by the corporation (as would be costs of the project under this section had they been 14
206	206	made directly by the corporation), and relocation costs, all as the corporation shall deem necessary. 15
207	207	(22)(29) “Project user” means the person, company, corporation, partnership, or 16
208	208	commercial entity, municipality, state, or United States of America who shall be the user of, or 17
209	209	beneficiary of, a port project. 18
210	210	(30) “Qualified data center” means a facility that is developed, acquired, constructed, 19
211	211	rehabilitated, renovated, repaired or operated, to house a group of networked computer services in 20
212	212	one physical location or multiple contiguous locations to centralize the storage, management and 21
213	213	dissemination of data and information pertaining to a particular business or classification or body 22
214	214	of knowledge. 23
215	215	(31) “Qualified data center equipment” means computer equipment, software and hardware 24
216	216	purchased or leased for the processing, storage, retrieval or communication of data including: 25
217	217	(i) Computer servers, routers, connections, chassis, networking equipment, switches, 26
218	218	racking, fiber optics and copper cables, trays, conduits and other enabling machinery, equipment 27
219	219	and hardware, regardless of whether such personal property is affixed to or incorporated into real 28
220	220	property; 29
221	221	(ii) Equipment used in the operation of computer equipment or software for the benefit of 30
222	222	a qualified data center, including component parts, replacement parts and upgrades, regardless of 31
223	223	whether the person property is affixed to or incorporated into real property; 32
224	224	(iii) Equipment necessary to the transformation, generation, distribution or management of 33
225	225	electricity that is required to operate computer servers and related equipment, including substations, 34
226	226
227	227
228	228	LC002642 - Page 7 of 15
229	229	generators, uninterrupted energy equipment, supplies, conduits, fuel piping and storage, cabling, 1
230	230	duct banks, switches, switchboards, batteries and testing equipment; 2
231	231	(iv) Equipment necessary to cool and maintain a controlled environment for the operation 3
232	232	of computer servers and other equipment of a qualified data center, including chillers, mechanical 4
233	233	equipment, refrigerant piping, fuel piping and storage, adiabatic and free cooling systems, cooling 5
234	234	towers, water softeners, air handling units, indoor direct exchange units, fans, ducting and filters; 6
235	235	(v) Water conservation systems, including equipment designated to collect, conserve and 7
236	236	reuse water; 8
237	237	(vi) Conduit, ducting and fiber optic and copper cables located outside the qualified data 9
238	238	center, that are directly related to connecting one or more qualified data center locations; 10
239	239	(vii) Monitoring equipment and security systems; 11
240	240	(viii) Modular data centers and preassembled components of any item described in this 12
241	241	subsection, including components used in the manufacturing of modular data centers; and 13
242	242	(ix) Any other personal property, exclusive of motor vehicles, that is essential to the 14
243	243	operations of a qualified data center or that is acquired for incorporation into or used or consumed 15
244	244	in the operation of the qualified data center. 16
245	245	(32) “Qualified investment” means the aggregate, nonduplicative eligible data center costs 17
246	246	expended by an owner, operator and colocation tenant of a qualified data center. 18
247	247	(23)(33) “Real property” means lands, structures (new or used), franchises, and interests in 19
248	248	land, including lands under water, and riparian rights, space rights, and air rights, and all other 20
249	249	things and rights usually included within the term. “Real property” shall also mean and include any 21
250	250	and all interests in that property less than fee simple, such as easements, incorporeal hereditaments, 22
251	251	and every estate, interest or right, legal or equitable, including terms for years and liens thereon by 23
252	252	way of judgments, mortgages or otherwise, and also all claims for damages to that real property. 24
253	253	(24)(34) “Recreational facility” means any building, development, or improvement, 25
254	254	provided that building, facility, development, or improvement is designed in whole or in part to 26
255	255	attract tourists to the state or to provide essential overnight accommodations to transients visiting 27
256	256	this state, including, without limiting in any way the generality of the foregoing, marinas, beaches, 28
257	257	bathing facilities, ski facilities, convention facilities, hotels, motels, golf courses, camp grounds, 29
258	258	arenas, theatres, lodges, guest cottages, and all types of real or personal property related thereto as 30
259	259	may be determined from time to time by the corporation. 31
260	260	(25)(35) “Renewable energy facility” means any real or personal property, or any 32
261	261	combination thereof, related to, or incidental to, any project, designed, intended, or utilized for an 33
262	262	eligible renewable energy resource that meets the criteria set forth in §§ 39-26-5(a) and 39-26-5(c). 34
263	263
264	264
265	265	LC002642 - Page 8 of 15
266	266	(26)(36) “Revenues” means: (i) with respect to any project, the rents, fees, tolls, charges, 1
267	267	installment payments, repayments, and other income or profit derived from a project or a 2
268	268	combination of projects pursuant to any lease, conditional sales contract, installment sales contract, 3
269	269	loan agreement, or other contract or agreement, or any combination thereof, and (ii) any receipts, 4
270	270	fees, payments, moneys, revenues, or other payments received or to be received by the corporation 5
271	271	in the exercise of its corporate powers under this chapter, including, without limitation, loan 6
272	272	repayments, grants, aid, appropriations and other assistance for the state, the United States or any 7
273	273	corporation, department or instrumentality of either or of a political subdivision thereof, bond 8
274	274	proceeds, investment earnings, insurance proceeds, amounts in reserves and other funds and 9
275	275	accounts established by or pursuant to this chapter or in connection with the issuance of bonds, and 10
276	276	any other taxes, assessments, fees, charges, awards or other income or amounts received or 11
277	277	receivable by the corporation. 12
278	278	(27)(37) “Rule or regulation” means any directive promulgated by the Rhode Island 13
279	279	commerce corporation not inconsistent with the laws of the United States or the state, for the 14
280	280	improvement of navigation and commerce or other project purposes and shall include, but not be 15
281	281	limited to, charges, tolls, rates, rentals, and security provisions fixed or established by the 16
282	282	corporation. 17
283	283	(28)(38) “Sewage” shall be construed to mean the same as “pollutant” as defined in 18
284	284	subsection (16) above. 19
285	285	(29)(39) “Sewage treatment facility” means the sewage treatment plant, structure, 20
286	286	combined sewer overflows, equipment, interceptors, mains, pumping stations and other property, 21
287	287	real, personal or mixed, for the treatment, storage, collection, transporting or disposal of sewage, 22
288	288	or any property or system to be used in whole or in part for any of the aforesaid purposes located 23
289	289	or operated within the boundaries of the Quonset Point/Davisville Industrial Park, or utilized by 24
290	290	the corporation for the transport, collection, treatment, storage, or disposal of waste. 25
291	291	(30)(40) “Solid waste” means garbage, refuse, and other discarded materials, including, 26
292	292	but not limited to, solid waste materials resulting from industrial, recreational, utility, and 27
293	293	commercial enterprises, hotels, apartments, or any other public building or private building, or 28
294	294	agricultural, or residential activities. 29
295	295	(31)(41) “Solid waste disposal facility” means any real or personal property, related to or 30
296	296	incidental to any project, which is designed or intended or designated for the purpose of treating, 31
297	297	compacting, composting, or disposing of solid waste materials, including treatment, compacting, 32
298	298	composting, or disposal plants, site and equipment furnishings thereof, and their appurtenances. 33
299	299	(32)(42) “Source” means any building, structure, facility, or installation from which there 34
300	300
301	301
302	302	LC002642 - Page 9 of 15
303	303	is or may be the discharge of sewage. 1
304	304	(33)(43) “State” means the state of Rhode Island. 2
305	305	(34)(44) “State agency” means any office, department, board, commission, bureau, 3
306	306	division, authority, or public corporation, agency, or instrumentality of the state. 4
307	307	(35)(45) “State guide plan” means the plan adopted pursuant to § 42-11-10, which 5
308	308	establishes the statewide planning program. 6
309	309	(36)(46) “Utility facility” means any real or personal property designed, intended or 7
310	310	utilized for generating, manufacturing, producing, storing, transmitting, distributing, delivering, or 8
311	311	furnishing natural or manufactured gas, steam, electrical, or nuclear energy, heat, light, or power 9
312	312	directly or indirectly to or for any project, project user, or for the public, the collection and disposal 10
313	313	of storm and sanitary sewage; any railroads necessary or desirable for the free flow of commerce 11
314	314	to and from projects; any roads, highways, bridges, tunnels, viaducts, or other crossings necessary 12
315	315	or desirable for the free flow of commerce to and from projects, and any public transportation 13
316	316	systems or facilities, including, but not limited to, bus, truck, ferry, and railroad terminals, depots, 14
317	317	tracked vehicles, and other rolling stock and ferries; and any appurtenances, equipment, and 15
318	318	machinery or other personal property necessary or desirable for the utilization thereof. 16
319	319	(37)(47) “Water supply facility” means any real or personal property, or any combination 17
320	320	thereof, related to or incidental to any project, designed, intended, or utilized for the furnishing of 18
321	321	water for domestic, industrial, irrigation, or other purposes and including artesian wells, reservoirs, 19
322	322	dams, related equipment, and pipelines, and other facilities. 20
323	323	SECTION 2. Chapter 42-64 of the General Laws entitled "Rhode Island Commerce 21
324	324	Corporation" is hereby amended by adding thereto the following section: 22
325	325	42-64-43. Qualified data center location incentive. 23
326	326	(a) Any person that anticipates it will own, operate or be a colocation tenant in a qualified 24
327	327	data center in this state may apply to the corporation to enter into an agreement in accordance with 25
328	328	the provisions of this section, for an exemption from taxes imposed under chapter 3 of title 44 26
329	329	("property subject to taxation") and chapter 18 of title 44 ("sales and use taxes"). 27
330	330	(b)(1) Any person described in subsection (a) of this section that seeks an exemption shall 28
331	331	apply to the corporation, in a manner and form prescribed by the secretary of commerce. If the 29
332	332	corporation approves such an application, the secretary of commerce shall enter into an agreement 30
333	333	with such persons, provided such person demonstrates to the satisfaction of the secretary of 31
334	334	commerce that: 32
335	335	(i) The facility to be developed, acquired, constructed, rehabilitated, renovated, repaired or 33
336	336	operated shall be used as a qualified data center; and; 34
337	337
338	338
339	339	LC002642 - Page 10 of 15
340	340	(ii) The qualified data center shall make, on or before the fifth anniversary of the date an 1
341	341	agreement entered into pursuant to this section becomes effective, a qualified investment of at least: 2
342	342	(A) Two hundred million dollars ($200,000,000) provided the qualified data center is 3
343	343	located in an enterprise zone pursuant to chapter 64.3 of title 42 ("distressed areas economic 4
344	344	revitalization act") or a federal qualified opportunity zone designated pursuant to the Tax Cuts and 5
345	345	Jobs Act of 2017 Pub L. 115-97, as amended from time to time; or 6
346	346	(B) Four hundred million dollars ($400,000,000) provided the qualified data center is not 7
347	347	located in an enterprise zone or federal qualified opportunity zone. 8
348	348	(2) Any agreement entered into pursuant to this subsection shall: 9
349	349	(i) Be for a period of no less than thirty (30) years and no greater than fifty (50) years from 10
350	350	the date an agreement entered into pursuant to this section becomes effective, which may be in the 11
351	351	year in which the construction, rehabilitation, renovation or repair of a qualified data center 12
352	352	commences; 13
353	353	(ii) Include a five (5) year qualifying period, from the date of an agreement entered into 14
354	354	pursuant to this section becomes effective, for the applicable qualified investment amount set forth 15
355	355	in subsection (b)(1)(ii) of this section to be reached; 16
356	356	(iii) Include the payment of an annual fee by the qualified data center, to be determined 17
357	357	annually by the corporation and not to exceed twenty-five thousand dollars ($25,000), for the 18
358	358	administrative and operational costs of the corporation for the administration of this chapter. The 19
359	359	fee shall be paid by the qualified data center to the secretary of commerce during each year of such 20
360	360	qualifying period or until the applicable qualified investment amount set forth in subsection 21
361	361	(b)(1)(ii) of this section is reached, whichever is sooner; 22
362	362	(iv) Included a detailed description of the capital project that is the subject of the 23
363	363	agreement; 24
364	364	(v) Provide that the provisions of agreement are applicable, within the time period such 25
365	365	agreement is effective and for the remaining duration of such time period, to any: 26
366	366	(A) Subsequent owner of the qualified data center; 27
367	367	(B) Operator or affiliate of the operator of the qualified data center; or 28
368	368	(C) Colocation tenant, provided the facility continues to be used as a qualified data center; 29
369	369	and 30
370	370	(D) Include provisions for the assessments and payment of the taxes exempted pursuant to 31
371	371	such agreement and the rates or amounts of penalties and interest to be imposed thereon, if the 32
372	372	corporation determines that the requirements of the agreement or of a qualified data center are not 33
373	373	being met or have not been met. 34
374	374
375	375
376	376	LC002642 - Page 11 of 15
377	377	(3) If a qualified data center makes a qualified investment of at least: 1
378	378	(i) Two hundred million dollars ($200,000,000) if the qualified data center is located in an 2
379	379	enterprise zone designated pursuant to chapter 64.3 of title 42 ("distressed areas economic 3
380	380	revitalization act") or a federal qualified opportunity zone designated pursuant to the Tax Cuts and 4
381	381	Jobs Act of 2017, Pub. L. 115-97, as amended from time to time; or 5
382	382	(ii) Four hundred million dollars ($400,000,000) if the qualified data center is not located 6
383	383	in an enterprise zone or federal qualified opportunity zone, the agreement entered into with the 7
384	384	corporation pursuant to this section shall be effective for no less than thirty (30) years and not more 8
385	385	than to fifty (50) years. 9
386	386	(4) Any qualified data center that enters into an agreement pursuant to this section and 10
387	387	makes the applicable qualified investment amount set forth in subsection (b)(3) of this section, and 11
388	388	any operator or affiliate of and colocation tenant of such qualified data center, shall be exempt from 12
389	389	any financial transactions tax or fee that may be imposed by the state on trades of stocks, bonds, 13
390	390	derivatives and other financial products. The exemption under this section shall be effective for a 14
391	391	period of up to fifty (50) years from the date of the construction, rehabilitation, renovation or repair 15
392	392	of a facility is completed, as determined by the corporation. The corporation may incorporate the 16
393	393	provisions of this section into the agreement entered into herein or amend an existing agreement 17
394	394	with a qualified data center to incorporate the provisions of this section. 18
395	395	(5) The secretary of commerce, or designee, shall: 19
396	396	(i) Serve as the liaison between applicants and qualified data centers and other state 20
397	397	agencies: 21
398	398	(ii) Provide assistance to applicants and qualified data centers from the preapplication 22
399	399	phase to the post-operational stage; and 23
400	400	(iii) Seek to ensure coordinated, efficient and timely responses to applicants and qualified 24
401	401	data centers. 25
402	402	(c)(1) With respect to the exemption of taxes imposed under chapter 18 of title 44, the 26
403	403	secretary of commerce shall notify the tax administrator of any person that has entered into an 27
404	404	agreement pursuant to this section. The tax administrator shall provide to the person a certificate 28
405	405	that exempts the person, and any contractor or subcontractor of the person, from taxes for the sale 29
406	406	of and the storage, use or other consumption in this state of qualified data center equipment acquired 30
407	407	for incorporation into or used and consumed in the development, acquisition, construction, 31
408	408	rehabilitation, renovation, repair or operation of a facility that is used or to be used as a qualified 32
409	409	data center; and 33
410	410	(2) The certificate provided pursuant to this section shall apply, during the time period the 34
411	411
412	412
413	413	LC002642 - Page 12 of 15
414	414	agreement is effective, to: 1
415	415	(i) Any additional building or structure at a qualified data center to be developed, acquired, 2
416	416	constructed, rehabilitated, renovated, repaired or operated, to house a group of networked computer 3
417	417	servers, regardless of whether such development, acquisition, construction, rehabilitation, 4
418	418	renovation, repair or operation was contemplated at the time of entering into the agreement; and 5
419	419	(ii) Any additional qualified data center equipment, services and electricity acquired or 6
420	420	used by such qualified data center after the date the agreement was entered into. 7
421	421	(d)(1) With respect to the exemption from the tax imposed under chapter 3 of title 44 8
422	422	("property subject to taxation"), the exemption shall apply to: 9
423	423	(i) Real property, buildings or structures, located within or at a qualified data center; and 10
424	424	(ii) Enterprise information technology equipment used by a qualified data center. 11
425	425	(2) The exemption under this subsection shall apply, during the time period the agreement 12
426	426	entered into pursuant to subsection (b) of this section is effective to: 13
427	427	(i) Any additional building or structure at a qualified data center that is developed, 14
428	428	acquired, constructed, rehabilitated, renovated, repaired or operated, to house a group of networked 15
429	429	computer servers, regardless of whether any such development, acquisition, construction, 16
430	430	rehabilitation, renovation, repair or operation was contemplated at the time of entering into the 17
431	431	agreement; 18
432	432	(ii) Any additional enterprise information technology equipment used by a qualified data 19
433	433	center that is acquired after the date the agreement was entered into; and 20
434	434	(iii) Any additional facility acquired by the owner of a qualified data center for the 21
435	435	development, construction, rehabilitation, renovation, repair or operation of a qualified data center, 22
436	436	after the date of the agreement was entered into, provided such owner enters into a negotiated host 23
437	437	municipality fee agreement as required under this section for each such additional facility. 24
438	438	(3) The secretary of commerce shall notify each municipality in which a facility is located 25
439	439	of any agreement entered into pursuant to this section and shall provide the identity of the person 26
440	440	with which the secretary has entered into an agreement, the date the agreement is effective and the 27
441	441	terms of the agreement with respect to the exemption from the tax imposed under chapter 3 of title 28
442	442	44 ("property subject to taxation"). 29
443	443	(4)(i) No developer or owner shall commence construction, rehabilitation, renovation or 30
444	444	repair of a facility that shall be a qualified data center unless the owner has entered into a negotiated 31
445	445	host municipality fee agreement with the municipality in which the facility is located. The owner 32
446	446	shall enter into a negotiated host municipality fee agreement for each additional facility that shall 33
447	447	be a qualified data center that the owner acquires. If a facility is located in contiguous 34
448	448
449	449
450	450	LC002642 - Page 13 of 15
451	451	municipalities, the owner shall enter into a negotiated host municipality fee agreement for each 1
452	452	additional facility that shall be a qualified data center that the owner acquires. If a facility is located 2
453	453	in contiguous municipalities, such owner shall enter into a negotiated host municipality fee 3
454	454	agreement with each such municipality. 4
455	455	(ii) Each negotiated host municipality fee agreement shall include provisions for the 5
456	456	assessment and payment of the tax under chapter 3 of title 44 ("property subject to taxation") 6
457	457	exempted pursuant to the agreement entered into pursuant to subsection (b) of this section, and the 7
458	458	rates or amounts of penalties and interest to be imposed thereon, if the legislative body of the 8
459	459	municipality in which the qualified data center is located determines that the requirements of the 9
460	460	negotiated host municipality fee agreement are not being met or have not been met. 10
461	461	(5) The chief elected official of the municipality in which a qualified data center is located 11
462	462	shall notify the qualified data center if the legislative body of the municipality determines the 12
463	463	requirements of a negotiated host municipality fee agreement entered into pursuant to the 13
464	464	provisions of this subsection are not being met or have not been met. The qualified data center shall 14
465	465	cure the noncompliance not later than one hundred eighty (180) days after the date of such 15
466	466	notification. If the legislative body of such municipality determines the noncompliance has not 16
467	467	been cured, the negotiated host municipality fee agreement shall be terminated. 17
468	468	(6) Upon termination of a negotiated host municipality fee agreement pursuant to the 18
469	469	provisions of this subsection or subsection (e)(2) of this section, the qualified data center, the owner 19
470	470	of the property on which the qualified data center is located or the owner’s successors or assigns 20
471	471	shall be subject to the tax imposed under chapter 3 of title 44 ("property subject to taxation") and 21
472	472	shall be liable for the payment of the taxes on the property that was exempted from taxation, from 22
473	473	the date of noncompliance under subsection (d)(5) of this section or the date of termination under 23
474	474	subsection (e)(2) of this section, as applicable. Such liability shall attach to the property as a charge 24
475	475	thereon. The tax and any related penalty and interest shall be due, payable and collectible as other 25
476	476	municipal taxes and subject to the same liens and processes of collection. 26
477	477	(e)(1) If the corporation terminates an agreement entered into pursuant to subsection (b) of 27
478	478	this section due to making the determination that the requirements of the agreement or of a qualified 28
479	479	data center are not being met or have not been met the secretary of commerce shall notify the tax 29
480	480	administrator and the chief elected official of the municipality in which the applicable qualified 30
481	481	data center is located of the termination. 31
482	482	(2) Any negotiated host municipality fee agreement entered into pursuant to subsection 32
483	483	(d)(4) of this section by such qualified data center shall be terminated as of the date of the agreement 33
484	484	entered into pursuant to subsection (b) of this section is terminated. The municipality in which the 34
485	485
486	486
487	487	LC002642 - Page 14 of 15
488	488	qualified data center is located may use any remedy authorized by the general laws to secure the 1
489	489	interest of the municipality and recover the amount of any fee, tax, penalty and interest that become 2
490	490	due and owing to the municipality due to the termination. 3
491	491	(3) The amount of taxes under chapter 18 of title 44 ("sales and use taxes-liability and 4
492	492	computation"), penalty or interest that becomes due and owing pursuant to the termination by the 5
493	493	corporation of an agreement entered into pursuant to subsection (b) of this section may be collected 6
494	494	by the tax administrator under the provisions of chapter 1 of title 44 ("state tax officials"). The 7
495	495	amount of any such tax, penalty or interest shall be a lien on the real estate of the qualified data 8
496	496	center from the last day of the month next proceeding the due date of such tax until the tax is paid. 9
497	497	The tax administrator may record the lien in the records of any municipality in which the real estate 10
498	498	of the qualified data center is located but no lien pursuant to the provisions of this subsection shall 11
499	499	be enforceable against a bona fide purchaser or qualified encumbrancer of the real estate. When 12
500	500	any tax with respect to which a lien has been recorded under the provisions of this subsection has 13
501	501	been satisfied, the tax administrator shall, upon request of any interested party, issue a certificate 14
502	502	discharging the lien, which certificate shall be recorded in the same office in which the lien was 15
503	503	recorded. Any action for the foreclosure of the lien shall be brought by the attorney general in the 16
504	504	name of the state in the superior court for the county in which the real estate subject to the lien is 17
505	505	located, or, if the property is located in two (2) or more counties, in the superior court for one of 18
506	506	the counties, and the court may limit the time for redemption or order the sale of the real estate or 19
507	507	make such other or further decree as it judges equitable. 20
508	508	SECTION 3. This act shall take effect upon passage. 21
509	509	========
510	510	LC002642
511	511	========
512	512
513	513
514	514	LC002642 - Page 15 of 15
515	515	EXPLANATION
516	516	BY THE LEGISLATIVE COUNCIL
517	517	OF
518	518	A N A C T
519	519	RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE
520	520	CORPORATION -- QUALIFIED DATA CENTERS LOCATION INCENTIVE
521	521	***
522	522	This act would create qualified data centers, a facility that is developed, acquired, 1
523	523	constructed, rehabilitated, renovated, repaired or operated, to house a group of networked computer 2
524	524	services in one physical location or multiple contiguous locations to centralize the storage, 3
525	525	management and dissemination of data and information pertaining to a particular business or 4
526	526	classification or body of knowledge. The act establishes tax exemptions, for said centers, to be 5
527	527	approved by the commerce corporation. 6
528	528	This act would take effect upon passage. 7
529	529	========
530	530	LC002642
531	531	========
532	532