AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE CORPORATION (Limits the authority of the Rhode Island commerce corporation to finance any transaction to five million dollars ($5,000,000) for any one individual, business entity or project.)

H7311

2026 -- H 7311
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LC004279
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE
CORPORATION

Introduced By:
Representatives Nardone, Quattrocchi, Fascia, Santucci, Paplauskas, and
Chippendale

Date Introduced:
January 23, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 42-64-6 of the General Laws in Chapter 42-64 entitled "Rhode Island
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Commerce Corporation" is hereby amended to read as follows:
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42-64-6. General powers.
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(a) Except to the extent inconsistent with any specific provision of this chapter, the Rhode
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Island commerce corporation shall have the power:
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(1) To sue and be sued, complain and defend, in its corporate name.
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(2) To have a seal, which may be altered at pleasure and to use the seal by causing it, or a
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facsimile of the seal, to be impressed or affixed, or in any other manner reproduced.
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(3) To purchase, take, receive, lease, or otherwise acquire, own, hold, improve, use, and
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otherwise deal in and with, real or personal property, or any interest in real or personal property,
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wherever situated.
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(4) To sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of
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all or any part of its property and assets for any consideration and upon any terms and conditions
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as the corporation shall determine.
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(5) To make contracts and guarantees and incur liabilities, borrow money at any rates of
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interest as the corporation may determine.
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(6) To make and execute agreements of lease, conditional sales contracts, installment sales
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contracts, loan agreements, mortgages, construction contracts, operation contracts, and other

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contracts and instruments necessary or convenient in the exercise of the powers and functions of
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the corporation granted by this chapter.
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(7) To lend money for its purposes, invest and reinvest its funds, and at its option to take
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and hold real and personal property as security for the payment of funds so loaned or invested.
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(8) To acquire or contract to acquire, from any person, firm, corporation, municipality, the
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federal government, or the state, or any agency of either the federal government or the state, by
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grant, purchase, lease, gift, condemnation, or otherwise, or to obtain options for the acquisition of
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any property, real or personal, improved or unimproved, and interests in land less than the fee
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thereof; and to own, hold, clear, improve, develop, and rehabilitate, and to sell, assign, exchange,
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transfer, convey, lease, mortgage, or otherwise dispose or encumber that property for the purposes
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of carrying out the provisions and intent of this chapter, for any consideration as the corporation
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shall determine.
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(9) To conduct its activities, carry on its operations, and have offices and exercise the
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powers granted by this chapter, within or outside of the state.
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(10) To elect or appoint officers and agents of the corporation, and define their duties and
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fix their compensation.
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(11) To make and alter bylaws, not inconsistent with this chapter, for the administration
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and regulation of the affairs of the corporation, and those bylaws may contain provisions
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indemnifying any person who is or was a director, officer, employee, or agent of the corporation,
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or is or was serving at the request of the corporation as a director, officer, employee, or agent of
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another corporation, partnership, joint venture, trust, or other enterprise, in the manner and to the
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extent provided in § 7-1.2-814 of the business corporation act.
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(12) To be a promoter, partner, member, associate, or manager of any partnership,
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enterprise, or venture.
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(13) To have and exercise all powers necessary or convenient to effect its purposes;
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provided, however, that the corporation shall not have any power to create, empower or otherwise
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establish any corporation, subsidiary corporation, corporate body, any form of partnership, or any
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other separate entity without the express approval and authorization of the general assembly.
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(b) Express approval and authorization of the general assembly shall be deemed to have
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been given for all legal purposes on July 1, 1995, for the creation and lawful management of a
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subsidiary corporation created for the management of the Quonset Point/Davisville Industrial Park,
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that subsidiary corporation being managed by a board of directors, the members of which shall be
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constituted as follows: (1) two (2) members who shall be appointed by the town council of the town
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of North Kingstown; (2) two (2) members who shall be residents of the town of North Kingstown

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appointed by the governor; (3) four (4) members who shall be appointed by the governor; (4) the
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chairperson, who shall be: (i) the executive director of the Rhode Island economic development
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corporation until such time that the secretary of commerce is appointed; (ii) Upon the appointment
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of a secretary of commerce, the chief executive officer of the Rhode Island commerce corporation,
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and who also shall be the secretary of the Rhode Island executive office of commerce; and (5) non-
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voting members who shall be the members of the general assembly whose districts are comprised
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in any part by areas located within the town of North Kingstown.
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The approval and authorization provided herein shall terminate upon the establishment of
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the Quonset Development Corporation as provided for in chapter 64.10 of this title.
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(c) The authority of the Rhode Island commerce corporation to finance any transaction, as
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provided herein, shall be limited to five million dollars ($5,000,000) for any one individual,
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business entity or project as defined in § 42-64-3, unless additional funding is authorized by the
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general assembly.
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SECTION 2. Section 42-64-7 of the General Laws in Chapter 42-64 entitled "Rhode Island
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Commerce Corporation" is hereby amended to read as follows:
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42-64-7. Additional general powers.
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In addition to the powers enumerated in § 42-64-6, except to the extent inconsistent with
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any specific provision of this chapter, the Rhode Island commerce corporation shall have power:
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(1) To undertake the planning, development, construction, financing, management,
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operation of any project, and all activities in relation thereto.
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(2)(i) To sell, mortgage, lease, exchange, transfer, or otherwise dispose of or encumber any
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port project, (or in the case of a sale, to accept a purchase money mortgage in connection with any
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port project) or to grant options for any purposes with respect to any real or personal property or
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interest in real or personal property, all of the foregoing for consideration as the corporation shall
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determine. Any lease by the corporation to another party may be for any part of the corporation’s
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property, real or personal, for any period, upon any terms or conditions, with or without an option
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on the part of the lessee to purchase any or all of the leased property for any consideration, at or
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after the retirement of all indebtedness incurred by the corporation on account thereof, as the
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corporation shall determine.
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(ii) Without limiting the generality of the foregoing, the corporation is expressly
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empowered to lease or sell any part of the real or personal property owned or controlled by the
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corporation to the state, or any department of the state or to any municipality. The provisions of
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this section or of any other laws of this state (other than this chapter) restricting the power of the
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state, its departments or any municipality, to lease or sell property, or requiring or prescribing

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publication of notice of intention to lease or sell, advertising for bids, the terms of contracts of lease
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or sale, that would in any manner interfere with the purpose of this section, which is to provide for
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the mutual cooperation by and between the corporation and the state, its departments or any
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municipality, to the fullest extent possible, are not applicable to leases and sales made pursuant to
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this section.
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(3) To prepare or cause to be prepared plans, specifications, designs, and estimates of costs
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for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project,
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and from time to time to modify those plans, specifications, designs, or estimates.
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(4) To manage any project, whether then owned or leased by the corporation, and to enter
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into agreements with the state or any municipality or any agency or their instrumentalities, or with
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any person, firm, partnership, or corporation, either public or private, for the purpose of causing
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any project to be managed.
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(5) To provide advisory, consultative, training, and educational services, technical
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assistance, and advice to any person, firm, partnership, or corporation, whether it is public or
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private, in order to carry out the purposes of this chapter.
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(6) Subject to the provisions of any contract with note holders or bond holders to consent
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to the modification, with respect to rate of interest, time of payments of any installment of principal
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or interest, security or any other term of any mortgage, mortgage loan, mortgage loan commitment,
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contract, or agreement of any kind to which the corporation is a party.
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(7) In connection with any property on which it has made a mortgage loan, to foreclose on
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that property or commence an action to protect or enforce any right conferred upon it by law,
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mortgage, contract, or other agreement and to bid for and purchase the property at any foreclosure
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or any other sale, or to acquire or take possession of the property; and in that event the corporation
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may complete, administer, pay the principal of, or interest on any obligations incurred in connection
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with the property, dispose of, and otherwise deal with the property in a manner as may be necessary
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or desirable to protect the interest of the corporation therein.
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(8) As security for the payment of principal and interest on any bonds or notes or any
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agreements made in connection therewith, to mortgage and pledge any or all of its projects and
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property, whether then owned or thereafter acquired, and to pledge the revenues and receipts from
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all or part thereof, and to assign or pledge the leases, sales contracts, or loan agreements, or other
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agreements on any portion or all of its projects and property and to assign or pledge the income
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received by virtue of the lease, sales contracts, loan agreements, or other agreements.
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(9) To invest any funds of the corporation, including funds held in reserve or sinking funds,
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or any moneys not required for immediate use or disbursement at the discretion of the corporation,

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in: (i) obligations of the state or the United States, (ii) obligations of the principal and interest of
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which are guaranteed by the state or the United States, (iii) obligations of agencies and
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instrumentalities of the state or the United States, (iv) certificates of deposits of banks and trust
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companies or shares of building loan associations organized under the laws of the state or doing
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business in the state, or (v) any obligations, securities, and other investments as shall be specified
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in resolutions of the corporation.
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(10) To engage the services of consultants on a contract basis for rendering professional
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and technical assistance and advice, and to employ architects, engineers, attorneys, accountants,
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construction, and financial experts and any other advisors, consultants, and agents as may be
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necessary in his or her judgment, and to fix their compensation.
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(11) To contract for and to accept any gifts or grants or loans or funds or property or
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financial or other assistance in any form from the United States or any agency or instrumentality
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of the United States or from the state or any agency or instrumentality of the state or from any other
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source and to comply, subject to the provisions of this chapter, with the terms and conditions of
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this contract.
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(12) To enter into agreements with any municipality or political subdivision, either directly
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or on behalf of any other party which holds legal title to all or any portion of a project as the lessee
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from the corporation designated pursuant to § 42-64-20(c), providing that the corporation or the
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lessee shall pay annual sums in lieu of taxes to the municipality or political subdivision of the state
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in respect to any real or personal property which is owned by the corporation or the lessee and is
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located in the municipality or political subdivision.
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(13) To borrow money and to issue negotiable bonds and notes, and to provide for the
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rights of the holders of these bonds and notes, for the purpose of providing funds to pay all or any
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part of the cost of any port project or for the purpose of refunding any of these bonds issued.
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(14) To construct, acquire, own, repair, develop, operate, maintain, extend, and improve,
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rehabilitate, renovate, furnish, and equip one or more port projects and to pay all or any part of the
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costs of these bonds and notes from the proceeds of bonds of the corporation or from any
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contribution, gift, or donation or other funds made available to the corporation for those purposes.
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(15) To fix, charge and collect rents, fees, tolls, and charges for the use of any port project
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and to alter and investigate rates, and practices of charging, which affect port projects so as to
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increase commerce in the state.
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(16) To prescribe rules and regulations deemed necessary or desirable to carry out the
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purposes of this chapter including rules and regulations to insure maximum use and proper
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operation of port projects.

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(17) To establish penalties for violations of any order, rule, or regulation of the corporation,
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and a method of enforcing these penalties.
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(18) To develop, maintain, and operate foreign trade zones under those terms and
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conditions that may be prescribed by law.
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(19) To impose administrative penalties in accordance with the provisions of § 42-64-9.2.
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(20) To make assessments and impose reasonable and just user charges, and to pay for
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those expenses that may be required by law or as may be determined by the corporation to be
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necessary for the maintenance and operation of the sewage treatment facility.
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(21) To establish a sewage pretreatment program, and to require as a condition to the grant
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or re-issuance of any approval, license, or permit required under the program that the person
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applying for the approval, license or permit, pay to the corporation a reasonable fee based on the
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cost of reviewing and acting upon the application and based on the costs of implementing the
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program. In addition, where a violation of any of the provisions of this title or any permit, rule,
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regulation, or order issued pursuant to this title have occurred, the violator shall reimburse the
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corporation for the actual costs of implementing and enforcing the terms of the permit, rule,
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regulation or order as a condition to the grant or re-issuance of any approval.
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(22) To assist urban communities revitalize their local economics.
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(23) To provide assistance to minority businesses and to neighborhoods where there is
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insufficient economic and business investment.
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(24) To support and assist entrepreneurial activity by minorities and by low and moderate
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income persons.
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(25) To issue bonds and notes of the type and for those projects and for those purposes
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specified in any Joint Resolution of the General Assembly adopted by the Rhode Island house of
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representatives and the Rhode Island senate; pursuant to chapter 18 of title 35 of the general laws
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entitled the “Rhode Island Public Corporation Debt Management Act”; and to make such
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determinations, enter into such agreements, to deliver such instruments and to take such other
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actions as it shall deem necessary or desirable to effectuate the financing of such projects.
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(c) The authority of the Rhode Island commerce corporation to finance any transaction, as
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provided herein, shall be limited to five million dollars ($5,000,000) for any one individual,
30
business entity or project as defined in § 42-64-3, unless additional funding is authorized by the
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general assembly.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE
CORPORATION
***
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This act would limit the authority of the Rhode Island commerce corporation to finance
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any transaction to five million dollars ($5,000,000) for any one individual, business entity or
3
project.
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This act would take effect upon passage.
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LC004279
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