The bill proposes an amendment to Chapter 39-14.2 of the General Laws, specifically adding a new section that introduces a surcharge for rideshare or transportation network company services. This surcharge, set at seventy-five cents ($0.75) per fare, is to be collected by companies providing on-demand transportation services through app-based platforms. The collected surcharge is to be divided equally, with fifty percent allocated to a restricted account for street infrastructure improvements in the municipality where the fare originated, and the other fifty percent to a restricted account for funding the implementation of Transit Forward RI as adopted by the state planning council. Additionally, the tax administrator is tasked with creating necessary rules and regulations to implement these provisions, and all disbursements from the restricted accounts require appropriation by the general assembly.

Furthermore, the bill amends Chapter 44-18 of the General Laws by adding a section that directs all sales tax revenue collected from transportation network companies to be deposited into a restricted receipt account for the benefit of the Rhode Island public transit authority (RIPTA). The act is set to take effect immediately upon passage. This means that once enacted, rideshare companies like Uber and Lyft will be subject to the new surcharge and sales tax allocation, with the aim of improving local infrastructure and supporting public transit in Rhode Island.