The bill amends Chapter 44-18 of the General Laws by adding a new section, 44-18-18.2, which establishes a restricted receipt account specifically for the Rhode Island public transit authority. This account will receive all sales and use tax revenue collected from transportation network companies, as defined in 44-18-7.3. The funds deposited into this account will be used exclusively to support the operations of the Rhode Island public transit authority and will be exempt from the indirect cost recovery provisions outlined in Section 35-4-27.

The bill clarifies that the newly created Rhode Island public transit authority account will not be subject to the typical indirect cost recoveries of ten percent of cash receipts that are usually transferred from restricted receipt accounts to the general fund. This ensures that the funds collected from transportation network companies will be fully allocated to the public transit authority without deductions for indirect costs. The act is set to take effect on July 1, 2025.

Statutes affected:
5405: 35-4-27