Establishes a restricted receipt account for RIPTA to fund it operations from sales tax collected from ride-share companies. Exempts the account from indirect cost recovery provisions.

Plain-English Summary

This bill would create a dedicated funding account for the Rhode Island Public Transit Authority (RIPTA), the state's public bus system. The money in this account would come from sales taxes that are already collected from ride-share companies — businesses like Uber and Lyft that connect passengers with drivers through smartphone apps. Instead of that tax revenue going into the state's general budget, it would be set aside specifically to help pay for RIPTA's day-to-day operations, such as running bus routes and maintaining services.

The bill also includes a technical provision that exempts this new account from something called "indirect cost recovery," which is a process where the state takes a portion of certain funds to cover general administrative overhead costs. By exempting the account from this process, the bill ensures that more of the ride-share tax money actually reaches RIPTA rather than being redirected to cover broader state expenses.

This legislation would most directly affect Rhode Islanders who rely on public transportation, as a dedicated funding stream could help stabilize or improve bus service. It would also have implications for ride-share companies operating in the state, though they would not face any new taxes — only the destination of existing tax dollars would change. The bill has been referred to the Senate Finance Committee, where lawmakers have recommended holding it for further study before taking any action.