The bill amends Chapter 44-18 of the General Laws by establishing 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 the law. The funds deposited into this account will be used exclusively 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 Section 35-4-27 of the General Laws.

The bill clarifies that while indirect cost recoveries of ten percent of cash receipts are typically transferred from restricted receipt accounts to the general fund, the newly created Rhode Island public transit authority account will not be subject to this requirement. This ensures that the funds collected for the public transit authority remain available for its operational needs without being reduced by indirect cost recoveries. The act is set to take effect on July 1, 2025.

Statutes affected:
419: 35-4-27