WeVote
Log In

Bill

Bill

HB 8145

AN ACT RELATING TO PUBLIC FINANCE -- STATE FUNDS

2026 Regular Session Introduced by Karen Alzate and 9 co-sponsors

Creates a dedicated RIPTA funding stream from sales tax on ride-share revenues to support paratransit and RIDE Anywhere operations.

04/14/2026 Committee recommended measure be held for further study
0
WeVote Research Nonpartisan
Bill Summary · HB 8145

Summary of Bill HB 8145 (Rhode Island, 2026)

Basic information

  • Title: AN ACT RELATING TO PUBLIC FINANCE -- STATE FUNDS
  • Session: 2026
  • Introduced: February 27, 2026
  • Introduced by: Representative Stewart and co-sponsors
  • Committee: House Finance
  • Effective date: July 1, 2026

Purpose and intent

  • The bill aims to create new, dedicated restricted receipt funding streams to support the Rhode Island Public Transit Authority (RIPTA) operations, particularly for paratransit services and the RIDE Anywhere program.
  • It also adjusts existing rules on indirect cost recoveries from restricted receipts to specify treatment for the new account and certain existing restricted receipts.

Key provisions

Section 1: Indirect cost recoveries on restricted receipt accounts (amendment to § 35-4-27)

  • Current mechanism preserved with modifications: Indirect cost recoveries equal to 15% of cash receipts from most restricted receipt accounts would be transferred to general revenues in the state general fund.
  • Exceptions and non-transfer categories: There are explicit exclusions from this transfer for cash receipts from:
    • Contributions from nonprofit charitable organizations
    • Indirect cost-recovery rates on federal grant funds
    • Transfers from state agencies to the Department of Administration for debt service
  • List of restricted receipt accounts exempt from the transfer: A long, enumerated list of accounts that shall not be subject to the 15% transfer, including but not limited to accounts in:
    • Executive Office of Health and Human Services
    • Department of Health
    • Department of Public Safety
    • Department of Environmental Management
    • Housing, Revenue, Education, Judiciary, and other departments
    • Various specific grant, program, and restricted funds (as enumerated)
  • Impact: Most restricted receipts will continue to contribute 15% of cash receipts to the general fund unless explicitly exempted.

Section 2: Sales and Use Taxes — Liability and Computation (addition of § 44-18-18.2)

  • New provision: Creates a dedicated restricted receipt account for RIPTA funded by sales and use tax revenue collected from transportation network companies (TNCs), defined as ride-share entities.
  • Account purpose: The funds in the new restricted receipt account are to be used to support RIPTA operations specifically related to:
    • Paratransit transportation services
    • RIDE Anywhere program
  • Account treatment: Revenue from TNCs collected under this section shall be deposited into the new RIPTA-restricted receipt account and used for RIPTA-related operations as described.
  • Exemption from indirect cost recovery: The RIPTA account created in this section is explicitly exempt from the 15% indirect cost recovery transfer described in Section 1.

Section 3: Effective date

  • The act takes effect on July 1, 2026.

Who/what is affected

  • Rhode Island Public Transit Authority (RIPTA): Receives a dedicated funding stream from TNC sales tax revenues to support paratransit and RIDE Anywhere operations.
  • Restricted receipt accounts: Many accounts are shielded from the 15% indirect-cost transfer, preserving existing restricted-receipt funding and allowing targeted use of funds.
  • State finance operations: Indirect cost recovery rules are clarified and limited, with a new exemption for the RIPTA TNC tax-revenue account.

Procedural and timeline notes

  • The bill was referred to House Finance and, per the action history, recommended for held for further study on April 14, 2026.
  • If enacted, the RIPTA-funded account would begin on July 1, 2026 as the act’s effective date.

Potential impact

  • Operational funding for RIPTA paratransit and RIDE Anywhere: Provides a dedicated funding stream tied to ride-share activity, potentially stabilizing or expanding paratransit services.
  • Fiscal management: Clarifies and narrows the indirect cost recovery, ensuring certain restricted receipts are not diverted to the general fund.
  • Financial administration: Adds a new restricted receipt account within the general fund framework, increasing specialized funding capacity for transportation equity and accessibility initiatives.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.