The bill introduces a new chapter, CHAPTER 34.2, to Title 31 of the General Laws, establishing a $0.75 surcharge on fares charged by rideshare or transportation network companies. This surcharge is to be collected from customers and is intended to support local infrastructure and public transit initiatives. Specifically, fifty percent (50%) of the collected surcharge will be allocated to a restricted account for street infrastructure improvements in the municipality where the fare originated, while the other fifty percent (50%) will fund the implementation of Transit Forward RI, as adopted by the state planning council. The tax administrator is tasked with promulgating the necessary rules and regulations for this chapter, and all disbursements from the restricted accounts will require appropriation by the General Assembly.

Additionally, the bill amends Chapter 44-18 of the General Laws to create a new section, 44-18-18.2, which mandates that all sales tax revenue collected from transportation network companies be deposited into a restricted receipt account for the benefit of the Rhode Island Public Transit Authority (RIPTA). This provision aims to ensure that the financial contributions from rideshare companies are directed towards enhancing public transit services in the state. The act is set to take effect upon passage.