The bill amends Chapter 44-18 of the General Laws to establish a new section, 44-18-18.2, which creates 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 exclusively used to support the operations of the Rhode Island public transit authority. Additionally, the account will be exempt from the indirect cost recovery provisions outlined in § 35-4-27, which typically require a ten percent transfer of cash receipts from restricted receipt accounts to the general fund.

Furthermore, the bill amends § 35-4-27 to include the newly created "Rhode Island public transit authority account" among the restricted receipt accounts that are exempt from the indirect cost recovery provisions. This means that the funds collected for the public transit authority will not be subject to the usual deductions that apply to other accounts. The act is set to take effect on July 1, 2025, allowing for the establishment of this funding mechanism to support public transit operations in Rhode Island.

Statutes affected:
5405: 35-4-27