Rhode IslandH59852025 Regular SessionHouse

AN ACT RELATING TO HEALTH AND SAFETY -- THE RHODE ISLAND LIFE SCIENCE HUB ACT .

Sponsored By: Joseph J. Solomon, Jr. (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 0 costs, 4 mixed.

Safeguards for Science Hub Money

Hub money, including bond proceeds and revenue, must be held in trust and used only as the law allows. Those holding it must follow the law and applicable bond and trust agreements. The Hub can invest reserves, investment-fund money, and idle funds in investments allowed for Rhode Island's State Investment Commission. It can also create nonprofits to receive charitable gifts for its work. Each nonprofit needs a conflict-of-interest policy and must leave its assets to the Hub, another nonprofit, or the state when dissolved.

Science Hub Bonds Gain Investor Protections

The Hub can borrow and issue or refinance fixed- or variable-rate debt, backed by Hub assets, for up to 30 years. State public-corporation debt rules apply when debt finances essential public facilities or uses a state financing lease or guarantee. Investors allowed to buy state bonds can buy Hub bonds, which public bodies can accept wherever state bonds are accepted. Rhode Island pledges not to alter the Hub's rights to meet bond agreements until principal, interest, and related costs are paid. Pledges of Hub assets bind creditors immediately, without filing, delivery, or separate handling of assets.

Tax Breaks for Science Hub Bonds

The Hub, its property, and its money receive state and local tax exemptions. Hub bonds and notes, and income from them, are also exempt from state and local taxes. Estate, inheritance, and gift taxes remain outside the exemption. The Hub owes no transfer tax on documents recorded by it or on its behalf.

Science Hub Liability and Shutdown Rules

Rhode Island is not liable for Hub debts or agreements; payments come only from Hub assets, property, or revenue. The Hub can sue and be sued, and is responsible for harm like a private person. It cannot become a debtor under federal bankruptcy or Rhode Island receivership laws. It continues while bonds remain unpaid unless ended by law; upon termination, the state takes its assets and assumes its obligations. Hub earnings cannot benefit a private person.

Science Hub Property Deals and Fees

The Hub can buy, sell, or lease property with state public bodies for its authorized purposes. At its request, municipalities can lend, pledge, grant, or transfer property on terms municipal leaders find fair and reasonable. These deals bypass otherwise required advertising, court orders, formalities, and public-property restrictions. The Hub can collect reasonable rents, fees, and charges, then use the money or allocate it to state or local government. Hub contracts and agreements cannot last more than 20 years.

Startup Investments With Private Investor Limits

The Hub can operate venture capital funds for early-stage life science companies in Rhode Island. The funds provide capital in exchange for company ownership and a proportional share of net profits. State appropriations to the Hub and net profits it receives from those funds cannot be paid to for-profit fund investors. The law sets no investment amount or expected return.

More Funding Options for Science Businesses

The law includes gene therapies, health software and artificial intelligence, marine, agricultural, and veterinary sciences within life science. The Rhode Island Life Science Hub can coordinate statewide work and create programs to attract, keep, and grow businesses. Its investment fund can support operations, research, grants, loans, and investments using state appropriations, bond proceeds, federal funding, and other money. Companies need board certification to qualify for grants and incentives, and board approval for financing; the prior treasurer-signature requirement is removed. No specific funding amount is set.

Sponsors & Cosponsors

Sponsor

Joseph J. Solomon, Jr.
Democratic • House

Cosponsors

Stephen M. Casey
Democratic • House
Julie A. Casimiro
Democratic • House
Raymond A. Hull
Democratic • House
Evan P. Shanley
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 66 • No: 6

House vote • 6/16/2025

THE RI LIFE SCIENCE HUB ACT PASSAGE