The bill proposes amendments to the General Laws regarding state funds and state aid, specifically affecting the city of Providence. It amends Section 35-4-1 by adding a new exception to the general fund credit rule, stating that state withholding taxes received by the director of revenue starting July 1, 2023, shall be remitted to Providence as per Chapter 71 of Title 44. This insertion marks a change in the allocation of certain state receipts. Additionally, the bill modifies Section 45-13-1 to clarify that the portion of state income tax paid to Providence under Chapter 71 of Title 44 is a separate allocation and not part of the city's appropriation or allocation under Chapter 45-13. The bill also introduces a new Chapter 71 to Title 44, which deals with the transfer of a portion of state income taxes from new employees of not-for-profit healthcare and higher education institutions to Providence, although the specific details of this chapter are not included in the summary.

The bill further outlines the definitions of terms related to not-for-profit healthcare and private educational institutions and sets forth procedures for these institutions to report employment levels and new hires to the state and Providence officials. It mandates that the state transfer 25% of the state income taxes collected from the total new employees of these institutions to the city's treasurer. The aim of the bill is to support the expansion of not-for-profit healthcare and educational institutions in Providence by providing the city with additional financial resources derived from the growth in employment within these sectors.

Statutes affected:
6004: 35-4-1, 45-13-1