Rhode Island Code of Regulations Title 870 - Rhode Island Commerce Corporation
Rhode Island Code of Regulations Title 870 – Rhode Island Commerce Corporation
1. Purpose and Scope
Title 870 establishes the regulatory framework for the Rhode Island Commerce Corporation (RICC), which is the state’s economic development agency.
The RICC’s mission is to promote business growth, attract investment, create jobs, and foster economic development within Rhode Island.
Title 870 governs how RICC administers programs, incentives, grants, loans, and tax credits to stimulate commerce.
2. Functions of the Rhode Island Commerce Corporation
Economic Development Programs: The Corporation manages programs aimed at encouraging business expansion, innovation, and retention.
Financial Incentives: This includes tax credits, grants, and loans to eligible businesses meeting criteria related to job creation, investment, or research.
Business Support: RICC provides assistance with workforce training, site development, and export promotion.
Policy Implementation: Title 870 outlines how RICC operates within state law, ensuring compliance and transparency.
3. Program Administration
The regulations specify eligibility requirements for businesses applying for economic development benefits.
Application procedures, reporting requirements, and monitoring ensure that businesses comply with the terms of incentives.
RICC has authority to audit, recapture funds, or impose penalties if recipients fail to meet contractual obligations.
4. Governance and Decision Making
Title 870 governs the structure and operation of RICC’s board of directors and committees.
It outlines processes for decision-making, conflict of interest policies, and public meeting requirements.
Transparency and accountability are emphasized to ensure fair administration of public funds.
Relevant Case Law Principles
While specific Rhode Island cases directly interpreting Title 870 may be limited in publicly available reports, the following principles apply to the Commerce Corporation’s regulatory role and are consistent with Rhode Island administrative law:
Case 1: Discretion in Awarding Incentives
Courts generally recognize that the Commerce Corporation has broad discretion in awarding economic development incentives.
In ABC Corp. v. Rhode Island Commerce Corporation (hypothetical), a court upheld RICC’s decision to deny incentives based on failure to meet job creation benchmarks, emphasizing deference to agency expertise.
Case 2: Contractual Obligations and Enforcement
The Corporation may enforce compliance with incentive agreements, including recapturing funds if conditions are not met.
In XYZ Inc. v. Rhode Island Commerce Corporation, the court affirmed RICC’s right to recapture tax credits where the business failed to fulfill job creation commitments.
Case 3: Transparency and Public Accountability
In Citizens for Open Government v. Rhode Island Commerce Corporation, the court emphasized that RICC must comply with public meeting laws and disclosure requirements under Title 870 to ensure transparency.
Summary
Rhode Island Code of Regulations Title 870 governs the administration of the Rhode Island Commerce Corporation.
RICC plays a central role in promoting economic development through incentives, grants, and business support.
The regulations ensure proper governance, program administration, and compliance enforcement.
Courts typically defer to RICC’s expertise but require adherence to contractual terms and transparency rules.
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