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This Week at the State House
Tuesday, May 19th The House Committee on Environment & Natural Resources is meeting at the Rise (approximately 4:45pm) to vote on a building benchmarking bill and to hear testimony related to black takeout containers. Building Benchmarking H.7183, An Act Relating to Health and Safety – Building Benchmarking and Reporting Act of 2026, creates a new statute – Chapter 27.5 – to facilitate an energy reporting requirement for residential, commercial and industrial buildings with twenty-five thousand gross square feet or more. If passed as currently written, the following information must be provided to the Office of Energy Resources (OER): property address, primary use, gross floor area, annual energy use, source of energy use, annual greenhouse gas emissions, and a statement of compliance or noncompliance with the statute. Buildings with 50,000 sq ft or more begin reporting May 15, 2028. Buildings between 25,000 – 49.999 sq. ft. begin reporting May 15, 2030. Exemptions are available for vacant buildings, buildings possessing a demolition permit and buildings with no energy services provided. OER is required to collect the data and to post building specific information on its website, as well as “Progress against baseline year data for intervening years for both energy use and greenhouse gas emissions.” H.7183, under the enforcement provision, allows OER to withhold grants and Infrastructure Bank monies from buildings that fail to comply with reporting requirements or “decarbonization efforts.” No other sections of the bill provide OER with the ability to implement decarbonization requirements based on the results of the benchmarking reports. Bills in previous years have included such explicit authority. Lastly, any municipality currently implementing a reporting program (Providence) may continue to do so and submit its information to OER - relieving buildingowners from a double reporting requirement. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7183.pdf Black Takeout Containers Ban H.8415, An Act Relating to Health and Safety – Plastic Waste Reduction Act, is a new bill introduced April 8th. The bill bans restaurants and other retail establishments from using black plastic containers for customer leftovers or for takeout (including grab and go) food. If passed, the ban would go into effect October 1, 2026. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8415.pdf No testimony will be taken on H.7183; however, testimony related to H.8415 may be emailed to: [email protected] Wednesday, May 20th Termination of Gas Line Extensions The Senate Committee on Environment and Agriculture is scheduled to hear testimony on a resolution to terminate any future natural gas line extensions. Senate Resolution 2354, cites the Executive Climate Change Coordinating Council’s 2025 Climate Action Strategy as the driving force for this action. The EC4’s Strategy calls for a reduction in the use of gas for home heating in order to meet the State's 2030, 2040, and 2050 emissions reduction requirements. The resolution states, “Connecting new customers to the gas distribution system locks in customer subsidization of new infrastructure whose intended life extends beyond the 2050 net zero emissions requirements.” While resolutions do not carry the weight of law, they are meant to express a legislative body’s official opinion. They do not require the Governor’s signature. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2354.pdf Testimony on SR.2354 may be submitted to [email protected] Thursday, May 21st Estate Tax Reduction The House Finance Committee will meet at the Rise in Room 35 to take testimony on H.8190, An Act Relating to Taxation – Estate and Transfer Tax. The bill proposes a phase-out of the estate tax: an exemption of $5 million for deaths occurring January 1, 2027; $7.5 million as of January 1, 2029, $10 million starting January 1, 2031, and a complete elimination of the tax January 1, 2033. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8190.pdf Testimony may be submitted to [email protected] Retroactive Liability and Electricity Cost Increase The Senate Finance Committee is meeting at the Rise in Room 211. Two bills of interest to the business committee will be heard – S.2024 and S.2248 S.2024, An Act Relating to State Affairs and Government – RI Climate Superfund Act, requires the state and municipalities to add up all of the costs expended in the last twenty-five years related to items the bill deems a result of climate change (“sea level rise, flooding, storm surge, extreme heat, drought, erosion, and other climate-driven hazards) including items such as “coastal and flood protection and resilience projects; Stormwater management, drainage, and water infrastructure upgrades; Heat mitigation, air quality improvement, emergency preparedness, and other hazard protection measures that safeguard public health; Resilient transportation, housing, and community infrastructure; Energy system resilience, including grid modernization and distributed energy resources; Ecosystem, agricultural, forest, watershed, and fisheries restoration or protection projects; and Hazard mitigation planning, modeling, monitoring, and early warning systems.” Once the total is calculated, an invoice would be sent to “responsible parties” defined as large businesses that extract and refine fossil fuels (a legal activity under federal and state laws). A ten percent daily penalty is added to late payments. This legislation, passed in Vermont, is being challenged by the US Chamber of Commerce in the federal district court for Vermont. Vermont allocated $600,000 in FY25 to set up the fund and prepare for a legal fight. In FY26, an additional $300,000 was allocated to defend the case. The state’s Agency of Natural Resources and Treasurer’s Office requested an additional $1.5 million in 2025 to hire outside experts to defend against lawsuits. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2024.pdf S.2248, An Act Relating to Public Utilities and Carriers creates a tiered rate system for electricity and natural gas customers whose household income level is below 150% of the federal poverty level. For these households, the plan envisions capping electric rates to ensure that they pay no more than 3% of their income on electricity or 6% of their income if the house utilizes electricity as a sole source of heat. The program will be funded by increasing rates on all other customers. Rhode Island customers currently pay the sixth highest residential electricity rates in the country, fifth highest commercial rates, and fourth highest industrial rates according to the Energy Information Agency’s most recent data. (U.S. Energy Information Administration, Electric Power Monthly, February, 2026, Average Price of Electricity to Ultimate Consumers by End-Use Sector. https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a) It is a challenge the state faces as it tries to attract businesses which bring with them jobs that help lift people out of poverty. The bill may be reviewed at: https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2248.pdf Testimony on either bill may be submitted to [email protected] Document Language Requirement The Senate Judiciary Committee, meeting at the Rise in Room 313, scheduled S.2965, An Act Relating to State Affairs and Government – Uniform Electronic Transaction Act, for hearing. This bill amends the state’s Act to give consumers the legal right to demand written paperwork in English or Spanish before they sign a contract or complete a transaction electronically. It explicitly allows any individual to block a transaction until they are provided a physical, written copy of the document.This will affect all businesses, particularly those that use Docusign or Adobe Sign. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2965.pdf Testimony may be submitted to [email protected] New Introductions No new bills of interest were filed this week.
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Contact: Dave Aulisio – VP Business Development 401-601-9674 [email protected] www.absne.com
Advocacy in Action
May 11, 2026 Speaker Shekarchi Hands Gavel to Speaker Blazejewski Thursday May 7th, Speaker Joe Shekarchi resigned his position of Speaker as he submitted his application for Rhode Island Supreme Court Justice. Speaker Shekarchi served as Speaker of the House for six years, being known for his open-door policy, hands-on negotiating standard and inclusive leadership style. The Chamber thanks Speaker Joe Shekarchi for his years of dedicated service to the people of Rhode Island. The House Democrats caucused Thursday and nominated Representative Chris Blazejewski to succeed him as Speaker with Representative Katherine Kazarian elected Majority Leader. As is custom, the Republican delegation nominated Minority Leader Mike Chippendale for Speaker and the vote was 65-10 along party lines. Speaker Blazejewski was first elected in November, 2010 and represents District 2 in Providence. He was House Majority Leader in 2020. As a representative, he championed housing affordability, environmental protection, public education, civil rights, senior services, health care and economic opportunity for working families. He co-sponsored and led passage of the Act on Climate as well as the renewable energy standard setting a course to 100% renewable electricity by 2033. He sponsored the Wavemaker Fellowship program, which aims at attracting and retaining graduates in the STEM fields. Speaker Blazejewski graduated from Harvard University in 2002 and received his law degree from Harvard Law in 2005. An attorney, he works for Sherin and Lodgen LLP. A lifelong Rhode Islander, he resides in Providence with his wife, Ami Gada, their daughter, Aria and their son, Liam. Leader Kazarian has served the residents of East Providence and Pawtucket in District 63 since being elected in November 2012. In January 2021, she was elected Majority Whip. She has introduced laws to allow adults to modify their birth certificates with culturally sensitive language, banning certain military-style assault weapons, and requiring monthly updates from the Department of Transportation on the Washington Bridge and allowing online mail ballot applications and mail ballots. Leader Kazarian worked at both Upserve and Virgin Pulse and was previously a Senior Planner for the City of Pawtucket. She is a graduate of Roger Williams University School of Law and currently works as an Associate Attorney at CMBG3 Law in Boston. Leader Kazarian is a lifelong resident of East Providence where she continues to live with her husband Sam Daniel and their twin daughters. Revenue Estimating Conference Completed The Revenue Estimating Conference has completed its work, leading the way for the debate over the FY27 budget to heat up. The State did realize some reduction in total caseload general revenue spending to the tune of $15.5 million in the current fiscal year over the adopted FY26 budget, but they expect the state to spend $11.7 million more than originally anticipated for FY27. Those numbers are better than predicted in November. In FY27, the conferees believe the state will experience a substantial decrease in RI Works recipients (from 9,875 to 6,600) saving $10.7 million. SSI payments are slightly up by $183,000. Residential Rehabilitation assistance is up $900,000. Other services such as community-based services, day programs, employment services, Transportation and Professional support program costs are projected to be up $5.5 million. Hospital costs are expected to decrease $4.7 million. Long-term care is up $18.1 million. Managed care is $50 million more than the original FY27 adopted budget. Part of the increase will be paid through federal dollars, with the overall budget impact of the FY27 caseload resulting in an increase spending from general revenue funds of $11.7 million On the revenue side, the conferees anticipate an increase of $66.9 million in personal income tax revenue (as compared to the estimate in November) in FY26 and a $35 million increase in FY27 over the November estimate. Business Corporations taxes are up $47 million in FY26 and $23 million over the November estimate for FY27. It is important to note these numbers reflect a decrease in the total corporation tax revenue of $9 million between FY26 and FY27. A great deal of time was spent on estimating sales and use tax numbers for FY27. The Governor’s budget office talked about the slowing economy and the potential to see a shift in spending on items that are not taxable. The conferees settled on a 2% growth with a total sales tax revenue of $1.776 billion ($1.6 million over the November estimate). The conferees enjoyed a brief moment of brevity as they commented on the adoption of “1776” as the sales tax estimate. The FY26 realty transfer tax saw a $10 million increase over FY25 and is expected to get to $33.3 million (another $4.5 million increase over FY26). Lottery revenues are $5 million less than anticipated in the November conference, and estimated to increase slightly - $1.6 million more in FY27. The overall impact to FY26 general revenue is $154.6 million more than anticipated in November’s REC; and $77.8 million more than anticipated for FY27. This Week at the State House Tuesday, May 12th The Senate Finance Committee is meeting at the Rise (approximate 4:45pm) with two bills of interest on the calendar. Tax on Real Property Gains S.2549, An Act Relating to Taxation – Tax on Gains from the Sale or Exchange of Real Property is designed to discourage short-term real estate flipping by imposing a new tax on profits from sales of property held for six years or less. The new tax would be applied as follows: Years property held by transferor 0-99% Gain 100-199% Gain 200% or more Gain Less than 4 months 60% 70% 80% 4 – 8 months 35% 52.5% 70% 8 months – 1 year 30% 45% 60% 1 - 2 years 25% 37.5% 50% 2 - 3 years 20% 30% 40% 3 – 4 years 15% 22.5% 30% 4 - 5 years 10% 15% 20% 5 – 6 years 5% 7.5% 1-% The legislation does provide exclusions for properties sold by 501(c) corporations, properties transferred by courts relative to marriage, certain farmlands and property purchased by the State of Rhode Island. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2549.pdf Employee Ownership Tax Credit Also on the agenda is the Lt. Governor’s bill, S.2809, An Act Relating to Taxation – Employee Ownership Tax Credit. The bill is designed to encourage businesses to transition to employee-owned models like Employee Stock Ownership Plans (ESOPs) or worker cooperatives. Businesses can claim a credit of up to 50% of "conversion costs" (legal, accounting, etc.) for transitioning to an ESOP/employee trust (capped at $100,000) or other equity structures (capped at $25,000). Existing employee-owned firms can receive a 50% credit (up to $25,000) for expanding ownership by at least 20%. The program is to be administered by the Office of Business Development with a total cap of $1,000,000 in annual credits, which are refundable. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2809.pdf Testimony on S.2549 and S.2809 can be emailed to [email protected] Social Security Income Tax Phaseout The House Finance Committee will hear, at the Rise, H.7057, An Act Relating to Taxation – Personal Income Tax. H.7057 gradually phases out the state’s income tax on social security benefits over a 5-year period. Beginning January 2027, the bill provides a 20% exemption, increasing to 40% in 2028, 60% in 2029, 80% in 2030 and a 100% exemption in 2031. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7057.pdf Testimony on H.7057 may be submitted to [email protected] Wednesday, May 13th Benefits for Striking Workers The Senate Labor and Gaming Committee is taking testimony at 4:00pm. S.2170, An Act Relating to Labor and Labor Relations – Employment Security Benefits, would require the payment of unemployment benefits for workers who are on strike or are locked out of their workplaces by their employer due to a labor dispute. Strikes and lockouts are part of the labor negotiation process, often arising from disagreements over wages, working conditions, or other terms of employment. These actions are typically voluntary on the part of the employees and should not be viewed as a situation of involuntary unemployment. According to the Tax Foundation’s 2026 report, Rhode Island ranks 48th out of 50 for unemployment insurance tax liability, 50 being the highest liability. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2170.pdf Testimony on S.2170 may be submitted to [email protected] Thursday, May 14th Grocery Store and Retailer Restrictions The Senate Commerce Committee is scheduled to vote on S.2342 which limits grocery stores by capping the number of self-service checkout stations they can operate to eight, and mandating a minimum ratio of manual checkout stations to self-service checkout stations. Stores would be required to operate one manual checkout station for every two self-check-out stations operating. Lastly, S.2342 states that “No more than two (2) self-service checkout stations may be simultaneously monitored by any one employee.” Any store having multiple violations is subject to a fine equal to the wages paid to the highest paid retail clerk during an eight-hour shift. If the violation is not rectified within thirty days, the business could be subject to a deceptive trade practice violation. Committees can post amended versions of bills 24 hours prior to the vote. It is unclear if a SubA (amendment) will be offered. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2342.pdf New Introductions House Bill No. 8524 Corvese, Kennedy, Azzinaro, Solomon, Casey, McEntee, Noret, Read, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION--GENERAL PROVISIONS (Amends various sections of the workers' compensation statute relative to the court's jurisdiction and the court's authority.) Following recent legal developments related to tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the U.S. Customs and Border Protection is issuing refunds for certain qualifying imports.
For many small and mid-sized businesses, this could mean significant dollars returned, but refunds are not automatic and require action. We encourage you to share the below information with any businesses, importers, retailers, or manufacturers in your network who may be eligible. Once submitted and if approved, refunds are generally expected within ~90 days, and may include interest. Who may qualify? Importers may be eligible if they:
NOTE: Most individual consumers are not eligible unless they directly acted as the importer of record. How to apply Refunds are not automatic. You must submit a request. You should take the following steps:
NOTE: Most applicants will likely work with a customs broker or trade professional to file correctly. What information will I need? Be prepared to provide:
Our office is available to help support those in Rhode Island’s First Congressional District. Please don’t hesitate to reach out and thank you in advance for helping us get the word out to the business community. Best, Erlinda Erlinda Castro Field Representative Congressman Gabe Amo (RI-01) 10 Charles Street, Suite 200 Providence, RI 02904 O: 401-729-5600 E: [email protected] This Week at the State House
Tuesday, May 5th World Cup Extended Service Hours The House of Representatives will vote on Tuesday on H 8009A, and the Seante is scheduled to vote on Thursday on S 2627A, legislation to enable extended service hours to provide public watch opportunities for certain late night FIFA World Cup Tournament matches. If enacted, licensees could apply at least two weeks in advance of certain match dates to their local licensing authority to extend indoor operating hours up to 4am and liquor service up to 3am. The eligible periods are for the following dates and continue to the early morning hours of the succeeding day: June 11, 13, 14, 16, 17, 19, 20, 22, 23, 25, 26, and 27; and July 2 and 3. A local licensing authority may grant or deny, in full or in part, any application to extend service hours under these provisions. https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/H8009A.pdf https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/S2627A.pdf Wednesday, May 6th Payment of Wages The Senate Labor & Gaming Committee will convene at 4pm in Room 212 to hear various legislation impacting the payment of wages. Testimony can be emailed to: [email protected]. Under current law, employers are not obligated to pay overtime to their executive, administrative, and professional employees who are compensated through salary rather than hourly wages, unless the salary of such employees would fall below the minimum wage. S 2166 would make additional salaried employees eligible for overtime pay. Small employers of 1-50 employees and large employers of 50 or more would be required to pay overtime to currently exempt workers if their salary falls below 1.5 times or 2 times, respectively, the minimum hourly wage for a forty-hour workweek. These triggers would increase to 2.5 times the minimum hourly wage for all employers by 2029. Many employees currently classified as exempt are compensated with higher salaries and benefits in exchange for their increased responsibilities and the expectation of flexible work hours. The relationship between employers and employes could become more transactional, shifting from a focus on results and outcomes to hourly tracking and micromanagement. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2166.pdf Between 2020 and 2026, Rhode Island businesses experienced a 47.8% increase in minimum wage labor costs. The Bureau of Labor Statistics calculates the cost-of-living increase to be 26% over the same period. For many businesses, labor is the highest operational cost, so an increase in wage is often difficult. When wages increase, there are other costs that are directly impacted by the increase. For example, if the minimum wage is increased, the unemployment insurance premium goes up, worker’s compensation insurance premiums go up, FICA payments increase. Also, Rhode Island remains the only state in the country that requires many employers to pay premium pay to employees who work Sunday and holidays as part of their normal forty (40) hour work week. For these employers, an increase in the minimum wage rate is an even greater hardship. These additional costs of doing business are not considered as part of these proposals and are simply increases that most businesses, especially our small businesses, cannot absorb without directly impacting their ability to remain open or to expand and grow. S 2325 & S2923 would increase the minimum wage from $17 per hour by the Consumer Price index effective January 1, 2028. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2325.pdf https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2923.pdf S2620 & S 2930 would increase, respectively, the minimum wage commencing January 1, 2027, to be $20 or $24 per hour. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2620.pdf https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2930.pdf S 2408 would increase the tipped minimum wage from $3.89 to $6.75 per hour, a 73.5% increase on January 1, 2027. It is important to understand that the “tipped wage” does not equate to the hourly wage paid to the employee. Both federal and state law require an employee to be paid minimum wage. If the employee does not make minimum wage when the tipped wage and customer tips are added together, the employer must make up the difference. Tips are a part of the employee's wage; tips are not windfalls over and above wages. S 2408 seeks to move the state toward the European model for restaurant wages. Those wages are higher for employees, but the model eliminates tipping. The result is a disincentive to provide good service as many who traveled have experienced. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2408.pdf Thursday, May 7th The House Finance Committee will convene hearings at the Rise (~5pm) in Room 35 on an array of bills proposing changes to various taxes. Testimony on these proposals can be emailed to: [email protected]. Income Tax H 7313 creates a three percent tax surcharge for persons with taxable income over $625,000, taking our State’s highest income tax rate of 5.99 percent to 8.99 percent – a fifty percent increase. This increase would place Rhode Island’s topmost income tax rate at 8th highest in the country. The Chamber is very concerned that the passage of budget proposal will stifle economic development of businesses and encourage those who can, to move to a lower cost state. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7313.pdf H 7805 would provide for a phased reduction of personal income taxes by an aggregate 10% via 5 consecutive annual 2% reductions of tax rates from 2027 to 2031. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7805.pdf H 8438 would carry through the federal deductions provided for qualified gratuity income up to $25,000 and overtime income up to $12,500 to the state level. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8438.pdf Estate Tax Rhode Island maintains a transfer tax on the value of a decedent’s estate, including real property and interest in certain securities located in Rhode Island, before distribution to any beneficiary. It is among the 12 states and the District of Columbia that impose such a tax. For decedents dying on or after 1/1/2026 in Rhode Island the gross estate threshold is $1,838,056, prior to any deductions in value for such items as mortgages, debts, and claims, with a rate from 0.8%-16%, which is near the lowest exemption level of states with an estate tax. The estate tax disincentivize investment in Rhode Island. Aligning it to the federal estate tax exemption or eliminating it altogether would encourage wealthy individuals and their assets to stay in in Rhode Island. H 7312 would raise Rhode Island’s estate tax exemption to be aligned with the federal $15 million estate tax exemption level on January 1, 2027, as is the practice in Connecticut. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7312.pdf Corporate Minimum Tax Rhode Island currently imposes a minimum tax of $400 each year on corporations, including pass through S Corporations. H 7397 would repeal the minimum tax. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7397.pdf Sales Tax Holiday H 8199 would create a sales tax holiday for August 8 & 9, 2026. No sales tax would be collected on nonbusiness sales of tangible personal property, except for sales of telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles, motorboat, meals or a single item whose price exceeds $2,500. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8199.pdf Tax Amnesty H 7398 authorizes the tax administrator to waive interest and penalties on delinquent taxes paid in full during a one-week amnesty period each year. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7398.pdf Commercial Property Tax Interest Waiver; Local Investment Tax Credit The Senate Finance Committee will convene hearings at the Rise in Room 211. Testimony on these proposals can be emailed to: [email protected]. S 2453 would allow the waiver of interest on overdue taxes for commercial properties in good standing for five prior years, similar to what is currently authorized for residential property. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2453.pdf S 2833 provides an investment tax credit to a taxpayer that makes a qualified investment in a local qualified business of ninety-nine employees or less. The program would be funded by a Rhode Island Commerce Corporation strategic fund. The bill also anticipates the use of annual general revenue appropriations. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2833.pdf Landlord-Tenant The Senate Housing and Municipal Government Committee is scheduled to meet at the Rise in Room 212 to hear various bills impacting landlords and tenants. Testimony regarding these matters can be submitted to: [email protected]. S2271 would impose rent control, limiting rent increase to no more than 4% annually unless granted an exemption by the secretary of housing. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2271.pdf S 3161authorizes municipalities, through ordinance, to require private real property owners to obtain a license to operate a dwelling unit as student housing. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3161.pdf S 2266 would prohibit the use of algorithmic pricing by landlords to determinate the amount of rent to be charged. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2266.pdf S 2267 imposes responsibilities on landlords and tenants with respect to the inspection and treatment of bed bugs in residential premises. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2267.pdf S 2579 would increase the notification time about rent increases and termination of tenancy for month-to-month tenants from 30 to 60 days, or 120 days for tenants aged 62 or older. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2579.pdf New Introductions House Bill No. 8505 BY Lombardi, Hull, Sanchez, Cruz, Potter Protects bullying/psychological abuse in workplace inflicted upon employees by employers/co-employees/provides civil remedies to affected employees/fines against employers/imprisonment/fines against co-employees. House Bill No. 8512 BY Cotter, Brien, Corvese Exempts from sales tax the amount paid for food and beverages during summer restaurant week and winter restaurant week. This Week at the State House
Tuesday, April 28th Business Identify Theft and Deceptive Solicitations The Senate Commerce Committee will meet at the Rise (~5pm) in Room 212 for a hearing on S 3212, and the House Corporations Committee will meet at the Rise in Room 101 for a hearing on H 8324, which were introduced on behalf of Rhode Island Secretary of State Gregg Amore for the purpose of strengthening protections against businesses identify theft, fraudulent business filings, and deceptive solicitations. It aims to stop scams that impersonate legitimate businesses, create fake companies using someone else’s identity, and sending misleading notices that appear to be official government communications. Testimony for S3212 can be emailed to: [email protected]. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3212.pdf Testimony for H8324 can be sent to: [email protected]. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8324.pdf Wednesday, April 29th World Cup Extended Service Hours The House Municipal Government and Housing Committee is scheduled to meet at 4pm in the House Lounge and vote on H 8009 Sub A, legislation to enable extended service hours to provide public watch opportunities for certain late night FIFA World Cup Tournament matches. Under the revised proposal, restaurants could apply with two weeks notice to their local licensing authority to extend indoor operating hours up to 4am and liquor service hours to up to 3am on designated evenings with late night World Cup matches. The eligible periods are for the following dates and continue to the early morning hours of the succeeding day: June 11, 13, 14, 16, 17, 19, 20, 22, 23, 25, 26, and 27; and July 2 and 3. https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/H8009A.pdf The companion legislation is also scheduled for hearing before the Seante Special Legislation Committee at 430pm on Wednesday in room 211. Testimony can be emailed to: [email protected]. https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/S2627A.pdf Caterers Liquor Licenses The Senate Special Legislation Committee will also hear S 2508, which would allow holders of a Class P licenses to ability to also purchase alcoholic beverages at wholesale, as well as permit serving an event host’s alcohol at their residence. Under current licensure, caterers must purchase alcohol at class A retail liquor stores. Providing the ability to purchase at wholesale creates parity for caterers within the competitive hospitality landscape for event businesses. Testimony can be emailed to: [email protected]. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2508.pdf Employee Ownership Included on the Senate Labor Committee meeting agenda for 4pm in Room 212 are two bills relative to employee ownership. Testimony can be emailed to: [email protected]. S.2922 creates the Center for Employee Ownership under the purview the State’s Business Development Center. The mission of the Center is to create a network of technical support and service providers for businesses considering employee-owned business models. While many business owners approach retirement with a clear succession plan, others have not considered what comes next. This bill provides an option by offering guidance on the legal, financial, and operational considerations involved in employee ownership conversions. At the same time, the Center could empower employees by providing support in developing business plans, understanding financing, and perhaps even preparing purchase proposals. Establishing this Center would not only help retain local businesses and jobs, but also strengthen Rhode Island’s economy by promoting stable, locally rooted enterprises. S.2744 requires a majority of businesses in Rhode Island to give all full-time and part-time employees thirty-days-notice of an intent to sell the business. This requirement applies to every business employing between three and five hundred employees that is privately held and not a publicly traded company. It also exempts businesses being sold to family members, sold due to a death or medical condition or compelled by a court order. Once the notice is given, the employees have thirty days “to officially initiate a process to potentially purchase the business.” After this date, the owner has the right to “share the intent to sell publicly.” It is unclear if the owner can proceed to sell the property to another party following the thirty-day notice period. It is also not clear what happens if the employees initiate a process to potentially purchase the business. If an offer to purchase is not put forth, can the business be sold to someone else, or is the owner allowed to entertain offers from other potential buyers but not move forward until an employee actual offer is made? This process is unfair to the business owner who has worked to build a business. The business is a person’s asset and a state requirement to hold the asset for thirty days, perhaps longer, and dictate who receives initial rights to purchase that asset could deter other potential buyers from coming forward. Who wants to put time and effort into evaluating a business if another buyer gets basically a first right of refusal? Thursday, April 30th The Senate Finance Committee will convene hearings at the Rise in Room 211 on multiple proposals seeking to modify how Rhode Islanders are taxed by the state. Testimony on these proposals can be emailed to: [email protected]. Income Tax H 7127, Article 5, Sections 2 and 6, proposes to create a three percent tax surcharge for persons with taxable income over $1 million, taking our State’s highest income tax rate of 5.99 percent to 8.99 percent – a fifty percent increase. https://webserver.rilegislature.gov/BillText26/HouseText26/Article-005.pdf#page=2 S 2238 would create a three percent tax surcharge for persons with taxable income over $640,000. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2238.pdf These proposals would place Rhode Island’s topmost income tax rate at 8th highest in the country (9th including Washington DC). Many of the “individuals” affected by this tax increase proposal are small businesses. They are referred to as “pass-through” entities that include the income and expenses associated with their businesses on their personal income tax statements. The Chamber is very concerned that the passage of budget proposal or S 2238 will stifle economic development of businesses and encourage those who can, to move to a lower cost state, especially as Rhode Island continues to struggle with high energy costs and higher property tax levies. Estate Tax S 2251 would eliminate the estate tax in Rhode Island. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2251.pdf S 2019 would phase out the estate tax in Rhode Island by 2033. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2019.pdf Rhode Island maintains a transfer tax on the value of a decedent’s estate, including real property and interest in certain securities located in Rhode Island, before distribution to any beneficiary. It is among the 12 states and the District of Columbia that impose such a tax. For decedents dying on or after 1/1/2026 in Rhode Island the gross estate threshold is $1,838,056, prior to any deductions in value for such items as mortgages, debts, and claims, with a rate from 0.8%-16%, which is near the lowest exemption level of states with an estate tax. As a comparison, Connecticut imposes a 12% tax that conforms to the federal threshold which was increased to $15 million for 2026 by the One Big Beautiful Bill Act. The estate tax disincentivize investment in Rhode Island. Aligning it to the federal estate tax exemption or eliminating it altogether would encourage wealthy individuals and their assets to stay in in Rhode Island. Wealth Tax S 2361 proposes an annual one percent (1%) tax on world wide wealth for both individuals and businesses in excess of $25 million. A state-level wealth tax—especially one that attempts to reach assets held around the world—is fraught with legal, economic, and administrative problems. It risks driving away investment, punishing entrepreneurship, and placing Rhode Island at a severe competitive disadvantage relative to other states. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2361.pdf S 3154 proposes an annual 4% tax on investment income—covering interest, dividends, capital gains, rental income, and other forms of “wealth proceeds.” This action would place Rhode Island at a competitive disadvantage relative to neighboring states. Many small business owners rely on investment income as part of their overall financial structure, including retirement planning, reinvestment into their companies, and capital formation. By imposing an additional layer of taxation on these earnings, the state risks discouraging both in-state investment and the attraction of new capital. The Chamber believes this bill could disproportionately impact closely held and family-owned businesses. These businesses often depend on retained earnings, asset sales, or rental income tied to business operations. Taxing these proceeds at a higher rate could reduce the resources available for expansion, hiring, wage growth, and innovation. The complexity of the proposed tax creates administrative burdens for taxpayers and compliance challenges that may require additional state resources to enforce. Simplicity and predictability in the tax code are essential to fostering a business-friendly environment. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3154.pdf This Week at the State House
The General Assembly is observing spring recess this week (April 20-25). Legislative hearings will resume April 28th. To date, 2700 bills have been introduced. The Chamber is actively tracking 232 bills covering issues such as: labor, taxes, energy, environment, licensing, technology in the workplace, etc. The legislature hopes to finish its work mid to late June. May Revenue Estimating Conference (REC) Schedule Released Each year the budget staffs for the Governor, House and Senate meet to hash out the revenue and caseload numbers to be used in the drafting of the final version of the state budget beginning July 1. The meetings are open to the public and can be watched on Capitol TV. https://capitoltvri.cablecast.tv/ The schedule was posted as follows: Monday April 27, 2026 9:00 A.M. Cash Assistance Caseload 1:00 P.M. Medical Caseload Wednesday April 29, 2026 – Economic Overview and Testimony 9:00 A.M. US and RI Economic Forecasts by Moody’s Analytics RI Labor Market Conditions by the Department of Labor and Training Consensus Economic Forecast (the REC adopts economic assumptions) 10:30 A.M. Commerce Corporation Tax Credits RI Commerce Corporation Lottery Receipts Division of Lottery Motion Picture Production Tax Credits Monday May 4, 2026 – Caseload Estimate 9:00 A.M. Caseload Estimating Conference (REC adopts expense numbers assuming current law) May 4, 2026 – Testimony 2:00 P.M. Tax Collections Taxation Friday, May 8, 2026 – Revenue Estimate 9:00 A.M. Revenue Estimating Conference (This meeting is a day-long meeting. The conferees will adopt revenue numbers to be used in the budget assuming only current law) The May REC is extremely important to the budget process. In the weeks following the REC, lawmakers will use these revenue and caseload numbers to determine policy. If they wish to cut programs, they use the REC numbers to determine how much money will be saved or used in other ways. If lawmakers wish to spend more than the revenues provide, then new sources of revenue will be considered to make up the projected deficit. New Introductions Senate Bill No. 3212 (Secretary of State) Britto, McKenney, Burke, Murray, DiPalma, Felag, LaMountain, DiMario, AN ACT RELATING TO UNIFORM COMMERCIAL CODE -- SECURED TRANSACTIONS (Makes a series of amendments and adds new provisions of law to address business identity theft and deceptive solicitations sent to businesses and the unauthorized formation of entities.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3212.pdf House Bill No. 8450 Newberry, Shekarchi, Finkelman, Chippendale, Marszalkowski, Slater, Phillips, Brien, Santucci, Solomon, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- RHODE ISLAND BUSINESS CORPORATION ACT -- THE RHODE ISLAND BUSINESS CLIMATE REFORM ACT (Adopts several concepts from other jurisdictions with the goal of promoting a stronger climate for business growth in Rhode Island, including a "Franchise Fee" in lieu of the corporation tax.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8450.pdf This Week at the State House
Tuesday, April 14th Automatic Renewals; Seniors Discounts The Senate Commerce Committee will meet at the Rise (~5pm) in Room 212 for hearings, including on two bills of interest. S 2768, An Act Relating to Commercial Law – General Regulatory Provisions – Unfair Sales Practices, would require businesses that make automatic renewals offers or continuous service offers for goods, service, memberships or subscriptions that are available online to disclose offer terms, changes, and make canceling such agreements online. Violations would constitute a deception trade practice subject to enforcement by the Attorney General and by private or class action. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2768.pdf S 2430, An Act Relating to Commercial Law – General Regulatory Provisions – Senior Savings Protection Act, would require that discounts offered to customers for utilizing automatic payments systems such as ACH or EFT, to also provide the same discount to any person who is 65 years of age or older making payment via paper checks. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2430.pdf Testimony can be emailed to: [email protected]. Property Acquisitions; Gas Tax Allocation to RIPTA The House Finance Committee is meeting at the Rise in Room 35 for hearings, including on two bills of interest. H 8169, An Act Relating to Waters and Navigation – Residential and Commercial Property Acquisition Program would facilitate the transfer of property in high-hazard zones and provide for restoration of acquired land to natural habitats to enhance resilience and shoreline access. The legislation requires the Rhode Island Infrastructure Bank to create a funding prioritization process, which shall factor in municipal dedication of revenue streams including commercial tax increment, stormwater, or sewer districts, transfer of development rights funds, and developer impact fees. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8169.pdf The Committee will also hear testimony on H8315, An Act Relating to Motor and Other Vehicles – Motor Fuel Tax, which would set the allocation rate for the RI Public Transit Authority (RIPTA) at the greater of the current $0.1175 per gallon or 29.375% of the total proceeds. Current law provides for a gas tax of $0.40 per gallon. Governor McKee’s budget H7127 provides for a reduction of the gas tax to $0.38 per gallon. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8315.pdf Testimony can be emailed to: [email protected]. Wednesday, April 15th Card Check Unionization; Workplace AI; Unlawful Employment Practice Liability The House Labor Committee is meeting at 4pm in Room 101 for hearings, including on three bills of interest. H 7291, An Act Relating to Labor and Labor Relations – Labor Relations Act, would allow employees, not represented by a union, to create a group to collectively bargain with employers that would initiate an election by the signing of file cards by 30% of a unit, and for a majority of unit employees voting to determine representation, which may not necessarily constitute the majority of employees of the unit itself. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7291.pdf H 7767, An Act Relating to Labor and Labor Relations – Artificial Intelligence Use and Fair Employment Practices, creates a comprehensive statutory framework to address and regulate the use of artificial intelligence in the workplace. The legislation: (1) Sets rules for “inputs and outputs” generated by AI when used to make significant decisions about workers, (2) Addresses the collection of data through electronic monitoring and time-tracking tools by banning such use unless the collection purpose meets specific needs set in the legislation (3) Covers “work process information” related to an individual’s productivity. This 11-page bill can be viewed at https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7767.pdf H 7768, An Act Relating to Labor and Labor Relations – Fair Employment Practices, would hold individuals personally liable for any act that constitutes an unlawful employment practice. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7768.pdf Testimony can be emailed to: [email protected]. Building Performance Standards The Senate Environment & Agriculture Committee is meeting at 4pm in the Senate Lounge for hearings, including on S 2218, An Act Relating to Health and Safety – Building Performance Standards Act of 2026, which would require the Office of Energy Resources (OER) to work with the Department of Environmental Management (DEM) to create building performance metrices for residential and commercial buildings with more than 25,000 gross sq. ft. of space, but not to buildings where a majority of energy is used for manufacturing, electricity generating, or thermal energy generating purposes. The bill gives OER explicit authority to adopt energy use and greenhouse gas emission standards for covered buildings based on use types. Starting December 31, 2028, OER and DEM would adopt the metrics and set standards that would eventually lead to a net zero emissions standard. The standards would be updated every five years between 2028 and 2050 and are expected to be adopted in such a way to establish a straight-line trajectory to the net zero target. Interim standards can be adopted for certain property types if it is deemed necessary. Starting June 30, 2035, and every five years thereafter, property owners must demonstrate progress toward the performance standards. The bill provides the ability to apply for waivers for hardship for a five-year period or to propose an alternative action plan for consideration. OER must establish penalties for violations of the law. Monies raised through the penalties are deposited in a “Building Performance Standard Fund” overseen by a newly established Environmental Justice Advisor Board comprised of nonprofits, public agencies, housing advocates, small businesses, experts in racial and social equity and the AFL-CIO. Board members receive a stipend for their service as well as reimbursement for childcare needs to attend meetings. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2218.pdf Testimony can be emailed to: [email protected]. Hospitality Workforce Training; Partial Unemployment Insurance S 2626, An Act Relating to Food and Drugs – Sanitation in Food Establishments, would impose an annual $50 fee on food service establishment licenses to be deposited in a restricted receipt account at the Department of Labor and Training for the issuance of hospitality workforce training grants. It is introduced at the request of the RI Hospitality Association, and is estimated to generate around $300,000 annually, and would facilitate a centralized industry contribution to help address reductions in state and federal resources for programs like Real Jobs RI. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2626.pdf S 2929, An Act Relating to Labor and Labor Relations – Employment Security, would eliminate the 6/30/26 sunset on the increase in the total amount of earnings a partial-unemployment insurance claimant can receive before being entirely disqualified for unemployment insurance benefits. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2929.pdf Testimony can be emailed to: [email protected]. Thursday, April 16th Automatic Enrollment Retirement Plan Tax Credit H 8189, An Act Relating to Taxation – Employer Tax credits for Retirement Plan Establishment, Participation and Auto-Enrollment, would establish a tax credit against Rhode Island income tax of up to $10,000 for up to 3 years for employers of 100 or fewer employees who established qualified retirement plans for employees with automatic enrollment features. The credit would be allowed to pass through to owners, partners, or members of pass-through entities, and could be carried forward for up to three years. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8189.pdf Testimony can be emailed to: [email protected]. Energy Code Moratorium; Energy Benchmarking S 3032, An Act Relating to Health and Safety – State Building Code, would establish a moratorium on changes to the state energy conservation code from the 2024 International Energy Conservation Code until January 1, 2031. Rhode Island was the first state in the country to adopt the 2024 IECC, including all electric readiness provisions. This bill was introduced at the request of the Rhode Island Builders Association and would provide stability for training and implementation of the 2024 code, and allow for alignment with outdated codes that have yet to catch up to the 2024 code cycle. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3032.pdf S 2260, An Act Relating to Health and Safety – Building Benchmarking and Reporting Act of 2026, would establish a building energy reporting program for covered residential, nonresidential properties and campuses containing 25,000 or more gross square feet. The following information must be provided to the Office of Energy Resources (OER): property address, primary use, gross floor area, annual energy use, source of energy use, annual greenhouse gas emissions, and a statement of compliance or noncompliance with the statute. Buildings with 50,000 sq ft or more begin reporting May 15, 2028. Building between 25,000 – 49.999 sq. ft. begin reporting May 15, 2030. Exemptions are available for vacant buildings, buildings possessing a demolition permit and buildings with no energy services provided. OER is required to collect the data and to post building specific information on its website, as well as “Progress against baseline year data for intervening years for both energy use and greenhouse gas emissions.” H.7183, under the enforcement provision, allows OER to withhold grants and Infrastructure Bank monies from buildings that fail to comply with reporting requirements or “decarbonization efforts.” No other sections of the bill provide OER with the ability to implement decarbonization requirements based on the results of the benchmarking reports. Bills in previous years have included such explicit authority. Lastly, any municipality currently implementing a reporting program (Providence) may continue to do so and submit its information to OER - relieving building owners from a double reporting requirement. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2260.pdf Testimony can be emailed to: [email protected]. Tort Procedure & Expansion Legislation The Senate Judiciary Committee is meeting at the Rise in Room 313 for hearings, including multiple bills that seek to expand opportunities for and damage claims for tort violations. The full agenda can be viewed here: https://status.rilegislature.gov/documents/agenda-21507.pdf. Of note are: S 3192, An Act Relating to Health and Safety – Abuse in Healthcare Facilities, would remove the intent requirement relative to the definitions of abuse within healthcare facilities to delete the element of willful conduct to be found liable. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3192.pdf S 3193, An Act Relating to Courts and Civil Procedure – Procedure Generally – Causes of Action, would provide for punitive damages in civil actions where there is willful or wanton conduct or a reckless disregard for health, safety and welfare. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3193.pdf S 3194, An Act Relating to Insurance – Motor Vehicle Insurance – Mandatory Arbitration Provision, would increase the minimum claim amount necessary to require a matter involving motor vehicle liability be submitted to mandatory arbitration from $50,000 to $100,000. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3194.pdf S 3199, An Act Related to Health and Safety – Rights of Nursing Home Patients, would expand standing for and authorize additional causes of action against nursing homes including actual and punitive damages related to violations of rights of nursing home patients. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3199.pdf S 3200, An Act Relating to Labor and Labor Relations – Fair Employment Practices, would hold individuals personally liable for any act that constitutes an unlawful employment practice. https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3200.pdf Testimony can be emailed to: [email protected]. New Introductions House Bill No. 8415 Bennett, Hopkins, Edwards, McEntee, Speakman, Handy, Carson, Kislak, Santucci, Boylan AN ACT RELATING TO HEALTH AND SAFETY -- PLASTIC WASTE REDUCTION ACT (Prohibits the use of black plastic takeout containers for use to take prepared foods and drinks from restaurants, stores, and other retail sales establishments.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8415.pdf House Bill No. 8438 Dawson AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Allows a modification to federal adjusted gross income for personal income tax for qualified tips and overtime income consistent with the federal tax treatment.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8438.pdf |
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