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Last Week at the State House
H.7905 Sub A, An Act Relating to Labor and Labor Relations – Fair Employment Practices passed the House Labor Committee and is headed to the House floor for a vote this week. This bill voids the use of non-disclosure or non-disparage agreements in civil rights matters. H.7928, which requires larger business to file taxes electronically was held for further study, as was S.2264 which creates a new tax bracket (8.99%) for individuals making over $500,000. S.2486 SubA, An Act Relating to Labor and Labor Relations – Dignity at Work Act passed the Senate Labor Committee on a 6-1 vote. (Senator de la Cruz voted “no”). The amendment transferred the authority to handle workplace bullying cases to the Human Rights Commission, added a severability clause and a liberal construction clause – meaning it should be interpreted to allow individuals greater ability to file complaints. The full Senate is scheduled to vote on the bill Tuesday. S.2775, An Act Relating to Labor and Labor Relations – Payment of Wages was held for further study, but it is getting a lot of attention and debate. The House companion bill is H.7677. These bills were introduced at the request of the Attorney General, and they designate failure to pay wages on time, failure to pay wages at time of termination or misclassification of employees as independent contractors, as felonies. NOTE: If these bills are important to your business, now is the time to reach out to both the House and Senate! http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2775.pdf http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7677.pdf Unemployment Trust Fund Still Needs Your Help Prior to the pandemic, the UI Trust Fund had over $500 million in it and businesses were being taxed at a “schedule F rate”. The Fund was healthy enough that discussions were underway to drop the tax rate to “schedule E” (the lower the alphabetical designation, the lower the corresponding tax rate). As of a couple months ago, the fund dropped to about $195 million and the tax rate paid by employers is now at “schedule H” which is two schedules higher than the pre-pandemic rate. The $300 million drop in funds came from the business community alone. Without help from the State or the federal government, the business community will bear the burden of paying back the $300 million. We know that at least $70 million in fraudulent claims were paid out in Rhode Island. Of the $70 million, about $37 million was paid by the Trust Fund – meaning paid by Rhode Island employers. At the very least, employers should not be responsible to pay fraudulent claims. Employers did not want to shut their doors to customers. They did not want to lay off or terminate employees. The State made the choice to close non-essential businesses and told people to stay home. From a public health perspective, this may have been the correct choice; but it was still a choice made by the State. If it were not for the pandemic, employers would be paying less in unemployment insurance premiums today. ARPA funds are intended to be used to address losses associated with the pandemic. The UI Trust Fund experienced great loss due almost entirely due to the pandemic. Lastly, it is important to stress that once the ARPA funds are spent, those funds are gone. Should the General Assembly choose not to replenish the UI Trust Fund, and Rhode Island experiences another downturn in the economy, there will be no funds to assist the UI trust fund. In that case, the tax rate would have to be further increased or the state would have to borrow from the federal government. Please contact your legislators now and express how important it is to replenish the Unemployment Insurance Trust Fund. Call or send an email telling your own experience with unemployment insurance taxes; or use the RI Business Coalition Voter Voice link to register your support for H.7385 which calls for a full replenishment of the Fund. https://www.votervoice.net/RIBC/campaigns/94532/respond This Week at the State House Tuesday, May 17th On Tuesday, at the Rise (approximately 4:30 pm) in Room 35, the House Finance Committee is scheduled to hear testimony on H.7440, An Act Relating to Taxation – Personal Income Tax. H.7440 proposes to add one new income tax bracket at a rate of 8.99% on taxable income over $403,500 (in 2011 dollars). Adjusted for inflation, the new tax bracket would apply to taxable income over approximately $500,000 (in 2022 dollars), This act would take effect on January 1, 2023 and would not apply retroactively. Wednesday, May 18th The long talked about legislation to legalize the adult use of marijuana is scheduled for a vote in the Senate Judiciary Committee at 3:30 in room 313 at the state house, while the House bill is scheduled for a vote at the Rise (approximately 4:30 pm) in the House Finance Committee in room 35. The amendments to the two bills have not been posted for public review yet, but are expected to be posted later today or tomorrow. Both meetings will be streamed live through Capitol TV at http://rilegislature.gov/CapTV/Pages/default.aspx Thursday, May 19th The House Finance Committee has a somewhat new bill on the agenda for Thursday at the Rise in room 35. Filed last month, H.8119, An Act Relating to Health and Safety – Comprehensive Health Insurance Program, creates a comprehensive, single-payer health care insurance program. The 92-page bill, creates an agency that will oversee health insurance for Rhode Island residents as well as retirees who have the insurance but then choose to retire in another state. The health care program would include Medicaid and Medicare patients. It is envisioned to cover an extensive range of services including: Primary and preventive care; Approved dietary and nutritional therapies; Inpatient care; Outpatient care; Emergency and urgently needed care; Prescription drugs and medical devices; Laboratory and diagnostic services; Palliative care; Mental health services; Oral health, including dental services, periodontics, oral surgery, and endodontics; Substance abuse treatment services; Physical therapy and chiropractic services; Vision care and vision correction; Hearing services, including coverage of hearing aids; Podiatric care; Comprehensive family planning, reproductive, maternity, and newborn care; Short-term rehabilitative services and devices; Durable medical equipment; Gender affirming health care; and Diagnostic and routine medical testing. The program’s director must create a procedure that may permit additional medically necessary goods and services beyond that provided by federal laws. Private insurance companies are not permitted to sell duplicative services to someone covered by the single-payer plan. H.8119 then creates a trust fund to pay for the services rendered. The trust fund will accept federal Medicaid and Medicare dollars, and will collect a 10% payroll tax to be paid 80% by the employer, 20% by the employee (the employer can choose to pay up to 100%). The bill also includes a 10% tax on unearned income although the director has the authority to adjust the percentage of tax to allow for a “progressive exemption or credit for individuals with lower unearned income levels.” A 6% tax is also assessed on hospitals’ net patient services revenue. The bill can be viewed in its entirety at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8119.pdf Revenue Estimating Conference Update As you may have read, the Revenue Estimating Conference met last week and determined that revenues are $580 million higher than anticipated back in November. The $580 million breaks down into an addition $386.7 million in FY2022 and $193 million in FY2023. For FY2022 – the current fiscal year - $284 million of the increase in revenue came largely from the personal income tax. Other significant increase in revenue collections included: $45 million business corporations, $43 million sales and use tax, $18 million insurance companies, $7.8 million state department receipts, and $2.3 million realty transfer taxes. The state also received $700,000 more in alcohol tax revenue than anticipated. In FY2023, the conferees believe the state will get $123 million more from the personal income tax, $74 million from increased sales tax revenue, $17.6 million from the insurance company tax and $11.6 million more from the business corporation tax. There are some revenue sources which are anticipated be less such as the cigarette tax collections, estate tax revenues and a few general business taxes like public utility gross tax revenues. The conferees also estimate caseload expenses to be about $159 million more than anticipated since last November with a portion of the $159 million coming from federal dollars. What became increasing clear as the revenue discussion evolved over the seven hours, is that both revenues and expenses are difficult to estimate when a war is taking place, inflation is high, supply chains are tenuous and individuals are still deciding where and how to return to the workplace. Remote Work Tax Implications During the Revenue Estimating Conference, the Division of Taxation provided testimony to the conferees surrounding the personal income tax. Director of Taxation Neena Savage clarified the status of an income tax reciprocal agreement made between a few states during the Covid 19 pandemic. During the pandemic, if an employee normally worked from an office in Massachusetts, but was permitted to work from a Rhode Island home, that employer was able to pay income taxes to the Commonwealth of Massachusetts as it would have prior to the pandemic. The agreement has expired. If the employee continues to work from a Rhode Island home, then Rhode Island tax withholding applies. This same change applies to an employee of a Rhode Island employer who is working remotely from his/her home in Massachusetts. Please contact your accountant if this situation applies to your company. There are no new bills to report this week.
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This Week at the State House
Tuesday, May 10th The Senate Finance Committee is meeting at the Rise (approximately 4:30 pm) in the Senate Lounge to hear testimony on S.2264, An Act Relating to Taxation – Personal Income Tax. This bill creates a new tax bracket for individuals – and pass through entities – making over $500,000 of 8.99%. The current rate is 5.99%. If you wish to submit written testimony, it must be emailed to jplume@rilegislature.gov before 1:00 pm on Tuesday. Wednesday, May 11th The House Labor Committee will be voting on an amended version of H.7905, An Act Relating to Labor and Labor Relations – Fair Employment Practices. This bill voids the use of non-disclosure or non-disparage agreements in civil rights matters. An employer cannot “require an employee as a condition of employment, to execute a nondisclosure agreement or an agreement with a clause, that requires alleged violations of civil rights remain confidential, or a non-disparagement agreement concerning alleged violations of civil rights. Any contract provision in violation of this subsection shall be void as a violation of public policy.” This is the language from the amended version – H.7905 SubA. The original bill reads “require an employee as a condition of employment, to execute a nondisclosure agreement or an agreement with a clause, that requires alleged violations of civil rights remain confidential, or a non-disparagement agreement concerning alleged violations of civil rights or alleged unlawful conduct…” Electronic filing of Taxes is on the docket for the House Finance Committee at the Rise in room 35. H.7928 requires businesses with $5000 or more in annual tax liability, or with annual gross income of $100,000 or more, to file returns and remit taxes electronically. If passed, the new requirement would begin January 1, 2023. Failure to comply would result in a $50 fine unless reasonable cause for failure can be shown. Testimony on this bill can be submitted by Wednesday at 1:00 p.m. at HouseFinance@rilegislature.gov Be sure to include your name, bill number, and position in the email heading. The Workforce Bullying bill (S.2486, An Act Relating to Labor and Labor Relations – Dignity at Work Act) is scheduled for a vote in the Senate Labor Committee at 4:00 p.m. At the hearing in March, it was mentioned that an amended version may be offered prior to a Senate vote. As of Sunday, no amendment has been posted. The Senate has passed this bill multiple times. The definition of workplace bullying includes: undermine, humiliate, denigrate, or sabotage a person in the workplace; as well as threatening, intimidating, dominating, or otherwise infringing upon a person's right to dignity. Workplace bullying may take the form of interpersonal interactions, organizational practices, or management actions. Workplace bullying may take the form of harassment, incivility, abusive supervision, physical violence, aggressions and “other types of objectionable behaviors.” The behaviors may come from any level of the organization, including supervision, co-workers, subordinates, or customers. Examples of bullying cited in the bill include: Interfering with a person's personal property or work equipment; use of humiliation, personal criticism, ridicule, and demeaning comments; Overbearing or intimidating levels of supervision; Withholding information, supervision, training or resources to prevent someone from doing their job; Changing work arrangements, such as rosters, offices, assignments, leave, and schedules to deliberately inconvenience someone; Isolating, or marginalizing a person from normal work activities; Inconsistently following or enforcing rules, to the detriment of an employee; Unjustifiably excluding colleagues from meetings or communications; and Intruding on a person's privacy by pestering… The bill is very broad and provides the “bullied” employee the ability to sue both the individual(s) involved as well as the employer. To view the actual text of the legislation, go to: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2486.pdf Thursday, May 12th The Senate Judiciary Committee will take testimony on S.2775, An Act Relating to Labor and Labor Relations – Payments of Wages. S.2775, submitted at the request of the Attorney General, creates a felony offense for knowing and willfully failing to pay an employee on the designated pay day, or for failing to pay an employee the amount of wages owed at the next pay day following termination. If the value of the wages owed is between $1500 and $5000 the penalty is up to three years imprisonment or a fine of twice the value of the wages, or both. If the value is between $5000 and $10,000, the penalty is up to six years in prison and a fine of twice the wages, or both. If the value is over $10,000, the penalty is up to ten years in prison and a fine of twice the wages, or both. The bill also creates a felony penalty for employers that knowing and willfully misclassify an employee as an independent contractor. The first knowing or willful violation brings a penalty of up to three years in prison or a fine of up to two times the value of the wages or $10,000, whichever is greater, or both. The second knowing or willful offense carries a penalty of up to five years in prison or a fine of up to three times the value of the wages or $20,000, whichever is greater, or both. NOTE: If this bill is important to your business, now is the time to reach out to both the House and Senate! Testimony can be emailed to SLegislation@rilegislature.gov Please include the bill number, your name, position and company in the subject line. Revenue Estimating Conference Update Last Friday, the Revenue Estimating Conference met to determine caseload numbers and certain program expenses which will be used in formulating the FY2023 budget and updating the current year’s fiscal budget (FY2022). The Conference reconvenes today – Monday, May 9th, in what is a day long meeting to hash out revenue estimates that will be used in creating the budget. Below are a few things we learned from the Caseload conference last week:
There are no new bills to report this week. Happy Friday!!! On the last day of Small Business Week, I have decided to promote my own business, Bookkeeping Towne, LLC. That is definitely one thing I don't do enough: self-promote! We are all our own advocates but we just don't do it enough. If you don't know what I do & how I help, let me re-introduce myself....... Want to learn more about my services? Click here: https://connectwithdolly.as.me/bookkeepingqa  Call to Action – Unemployment Trust Fund Replenishment
The Chamber needs your help! Last week we provided testimony again, asking for a full replenishment of the Unemployment Trust Fund. Prior to the pandemic, the UI Trust Fund had over $500 million in it and businesses were being taxed at a “schedule F rate”. The Fund was healthy enough that discussions were underway to drop the tax rate to “schedule E” (the lower the alphabetical designation, the lower the corresponding tax rate). As of a couple months ago, the fund dropped to about $195 million and the tax rate paid by employers is now at “schedule H” which is two schedules higher than the pre-pandemic rate. The $300 million drop in funds came from the business community alone. Without help from the State or the federal government, the business community will bear the burden of paying back the $300 million. As we all know, some very bad people took advantage of the pandemic by filing multiple fraudulent claims. We know that at least $70 million in fraudulent claims were paid out in Rhode Island (that number could change when the updated data is released). Of the $70 million, about $37 million was paid by the Trust Fund – meaning paid by Rhode Island employers. At the very least, employers should not be responsible to pay fraudulent claims. Employers did not want to shut their doors to customers. They did not want to lay off or terminate employees. The State made the choice to close non-essential businesses and told people to stay home. From a public health perspective, this may have been the correct choice; but it was still a choice made by the State. If it were not for the pandemic, employers would be paying less in unemployment insurance premiums today. ARPA funds are intended to be used to address losses associated with the pandemic. The UI Trust Fund experienced great loss due almost entirely due to the pandemic. Lastly, it is important to stress that once the ARPA funds are spent, those funds are gone. Should the General Assembly choose not to replenish the UI Trust Fund, and Rhode Island experiences another downturn in the economy, there will be no funds to assist the UI trust fund. In that case, the tax rate would have to be further increased or the state would have to borrow from the federal government. Please contact your legislators now and express how important it is to replenish the Unemployment Insurance Trust Fund. Call or send an email telling your own experience with unemployment insurance taxes. Thank you!!! This Week at the State House On Tuesday, May 3rd, the House Finance Committee will take testimony on many pieces of legislation. Among them are H.7440, An Act Relating to Taxation – Personal Income Tax and H.7659, An Act Relating to Taxation – Personal Income Tax. H.7440 proposes to add one new income tax bracket at a rate of 8.99% on taxable $403,500 (in 2011 dollars). Adjusted for inflation, the new tax bracket would apply to taxable income over approximately $500,000 (in 2022 dollars), This act would take effect on January 1, 2023 and would not apply retroactively. H.7659 would create a new income tax bracket at a rate of 6.99% on taxable income over $500,000. The funds collected from this new proposed bracket would be deposited into a restricted receipt account to pay for school building and school housing aid. Lastly H.7654, An Act Relating to Taxation – Business Corporate Tax will be heard on Tuesday. The bill imposes an additional tax on corporations equal to the tax cut created by the 2017 Tax Cuts and Jobs Act. It also eliminates the qualified business income deduction created by the 2017 Tax Cuts and Jobs Act available to pass-through entities. If passed, the bill would take effect on January 1, 2024. The language can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7654.pdf On Wednesday, May 4th, the Senate Committee on Environment and Agriculture will hear testimony on more environmental mandate bills. S.2448, An Act Relating to Motor and Other Vehicles is identical to a bill heard last week in the House Finance Committee (H.7653). At that hearing, the business community expressed a need for a holistic approach as the State tries to meet the mandated targets passed in last year’s Act on Climate. The chamber pointed out that it is imperative to perform a cost/benefit analyses prior to passage of more legislative mandates. The issues contained in S.2448 and H.7653 need to be a part of the analysis; but all of the options, costs, benefits, transition timetables, etc. should be laid out for the General Assembly prior to moving forward on any legislation. S.2448 requires 100% of all privately owned passenger and light-duty vehicles of model year 2030 or later “registered” in Rhode Island to be electric vehicles. That would mean anyone living in the state who purchased a fossil fuel vehicle outside Rhode Island or anyone moving to the state with a fossil fuel model 2030 vehicle would not be permitted to register the car here. For the person moving here from another state, that person would have to sell the car and purchase a new one in order to relocate to Rhode Island. This could be a deterrent for employers attempting to attract employees. Today in Rhode Island, there are approximately 500,000 car registrations (not including commercial vehicles). As of December 3, 2021, electric vehicle (EV) registrations accounted for 4,540 vehicles. According to Market Watch an EV car that drives 540 miles a month uses 180kwh a month. That means that the electric grid must find 180 kwh x 12 months (2,160 kwh a year) to meet the demand for each new EV purchased. Even if only 37% of the cars flipped to EVs in Rhode Island then it appears as if the electricity grid will need to find 33GW of new electricity per month (180 kwh x 185,000 EV vehicles). At a Senate Environment and Agriculture hearing earlier this year, ISO New England, the independent organization responsible for ensuring the region has reliable electricity supply, stated that it currently plans for summer peak demand because that is when New England experiences the highest usage of electricity. The “region’s all time summer peak demand was 28,130 MW on August 2, 2006.” (ISO-NE presentation can be viewed at: http://ritv.devosvideo.com/show?video=c4d8d4c3f5fc&apg=634c8273 ) The supply of electricity, which under the Act on Climate must be from renewable energy sources only, is a big concern to the Chamber of Commerce. No legislation should move forward until the state can determine how to ensure a reliable source of electricity will be available. Without reliable energy, businesses cannot operate. The following new bills were filed last week: House Bill No. 8164 Hawkins, Cardillo, Phillips, Biah, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- ELECTRICIANS (Expands the types of electrical services that require an electrical contractor's license.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8164.pdf House Bill No. 8192 Casimiro, Baginski, Noret, Solomon, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- EVIDENCE AND OVERSIGHT ACT OF 2022 (Creates the Evidence and Oversight Act of 2022 to create and maintain a data transparency portal.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8192.pdf House Bill No. 8195 Henries, Morales, Felix, Alzate, Kazarian, Biah, Speakman, Ranglin-Vassell, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- DIGNITY AT WORK ACT (Establishes a broad and comprehensive framework to provide workers with more protection and remedies from bullying and harassment in the workplace.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8195.pdf Senate Bill No. 2892 Kallman, McCaffrey, Goodwin, Cano, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX--CAPITAL GAINS (Amends the capital gains tax rates and holding period from 5 years to 1 year. Imposes a non-owner occupied tax on homes assessed at more than $1,000,000. Increases estate tax exemption to $2,225,000.) http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2892.pdf Senate Bill No. 2895 Picard, AN ACT RELATING TO TAXATION -- STATE TAX OFFICIALS (Waives interest and penalties on the taxable portion of loans taxed or forgiven under the Paycheck Protection Program during tax years 2020 and 2021, provided any tax due is paid by March 31, 2022 and March 31, 2023, respectively.) http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2895.pdf Tickets available at the Chamber office . 401-245-0750 16 Cutler Street, Suite 102 Warren RI 02885  Are You Considering Running for Office?
If you are considering running for a General Assembly seat – House or Senate- the deadline is approaching quickly. The Chamber can be most effective when business people run for office. Declarations for candidacy must be filed June 28th 29th or 30th at the Local Board of Canvassers in the City or Town where you are registered to vote. The Declaration of Candidacy is the document you sign to start the process of becoming a candidate. You “declare” yourself as a candidate for a particular office and if you wish to run as a party candidate, you also “declare” yourself to be a member of that party. All candidates for all public and party offices must file a Declaration of Candidacy. More information can be found at Welcome to your Voter Information Center This Week at the State House Welcome back from legislative break week! Over the next two months, the Chamber may call upon you to contact your legislators as the General Assembly seeks to wrap up the 2022 session. Tuesday, April 26th The Chamber will, once again, make the argument for full restoration of the Unemployment Trust Fund. The Senate Finance Committee will meet Tuesday at the Rise (approximately 4:30 p.m.) in the Senate Lounge. One topic of debate will be the amount of ARPA funds that should be used to replenish the Unemployment Trust Fund. As previously reported, approximately $300 million of the Fund was used to assist workers who became unemployed due to business closures during the COVID 19 pandemic. Included in the $300 million, was about $37 million in fraudulent claims. These numbers are expected to be updated by the Department of Labor during the Tuesday hearing. The Governor, in his proposed budget, has included $30 million for the Fund – if it makes a difference in the tax schedule (it is unlikely to do so). Since the start of the pandemic, Rhode Island businesses have jumped two schedules in unemployment tax rates due to the draw down on the fund. Prior to the pandemic, it was believed the Fund was in such solid financial condition, that businesses would actually see a drop in the tax schedule. Wednesday, April 27th The House Finance Committee will meet at the Rise in Room 35. One of the bills scheduled for hearing is H.7642, An Act Relating to Taxation – Agreement to Phase Out Corporate Incentives Compact Act. The bill, put forward by the House Republican caucus, allows Rhode Island to enter intro agreements with other states to establish “anti-poaching” agreements. If two or more states enter into such an agreement, those states cannot grant tax incentives or subsidies to corporations to entice them to move from one state to another – provided the move would be from one compact state to another compact state. The Attorney General would be responsible for enforcement of the compact, with any taxpayer from a compact state having standing to bring suit should the Attorney General not bring and action forward. The Senate Labor Committee will take up testimony on S.2700, An Act Relating to State Affairs and Government – Rebuild RI Tax Credit. The hearing, set for 4:00 p.m. in room 211, considers whether businesses that receive Rebuild RI Tax Credits must pay construction workers prevailing wages for the project, or have their tax credits revoked. Prevailing wages are higher than market rates. The bill also requires prevailing wages to be utilized for construction jobs associated with film tax credit projects, historic preservation tax credit projects, and Rhode Island New Qualified Jobs Incentive Act 2015 projects. The bill would take effect upon passage. It is unclear if projects already underway, but not completed, would be affected as well. Thursday, April 28th The Senate Judiciary Committee will meet at 4:00 p.m. in room 310 to review two bills of interest. S.2645, an Act Relating to Commercial Law, allows individuals who wish to conduct business under an assumed name, to file in person, by mail, or electronically with the office of the city or town clerk the true or real full name(s) of the person or persons transacting business and their email address. This act would take effect on January 1, 2024. Under current law, the individual must go to the town clerk in person and swear an oath to an authorized municipal employee. S.2812, An Act Relating to Corporations, Associations and Partnerships – Uniform Partnership Act, eliminates the state’s current partnership law effective January 1, 2023, and replaces it with an update model rule. This bill was introduced at the request of the Secretary of State. The 126 page bill addresses all aspects of Rhode Island partnerships including transferable interests, enforcement of partnership agreements, powers and dissolution procedures. The bill can be reviewed at S2812.pdf (state.ri.us) New Bill Introductions: No bills of interest were filed last week. Last Week at the State House
All of the bills featured in last week’s edition of UTD were held for further study. The Attorney General did appear to testify on behalf of H.7677 that declares the failure to pay employees properly or on time, a felony. The Chamber testified in opposition to the bill. S.2861 which creates a new, almost impossible, test for independent contractors, had a number of business organizations testifying in opposition – including the Chamber. The testimony from the business community was well-received, with little support from proponents. This Week at the State House As was reported previously in UTD, this week is legislative break week. Phase two of the legislative session has come to an end which means many of the bills have had hearings in committee. The Chamber is currently tracking 327 bills. Approximately two thirds have had hearings at this time. The last phase of session includes hearings, passage of bills, and the passage of two budgets – the federal funding spending package, and the FY2023 state budget. The Revenue Estimating Conference agenda was released. This will be the last estimation of the available revenues and anticipated spending for the current fiscal year; and provides the basis for the creation of the FY2023 budget. Monday, April 25, 2022 – Caseload Estimating
Friday, April 29, 2022 – Economic Overview and Testimony
Wednesday, May 4, 2022
Friday, May 6, 2022 - Caseload Estimating Conference and Revenue Testimony
May 9, 2022 – Final Revenue Estimating Conference
The following new bills were filed last week: House Bill No. 8157 Tanzi, Cortvriend, Kislak, Potter, Giraldo, Felix, Baginski, McGaw, Messier, Kazarian, AN ACT RELATING TO INSURANCE -- INSURANCE COVERAGE FOR MENTAL ILLNESS AND SUBSTANCE ABUSE (Increases in-network behavioral health care service reimbursement rates up to the median value effective 1/1/2023. Increases rates for 2024-2028 by rate of inflation plus three (3) percentage points determined by federal CPI.) H8157.pdf (state.ri.us) House Bill No. 8158 Kennedy, Morales, Diaz, McEntee, Azzinaro, Edwards, Casimiro, Kazarian, Serpa, Ackerman, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Caps amount payable for 30 day supply of equipment/supplies for insulin administration/glucose monitoring at $25 or equipment designed to last more than 30 days with no deductible commencing January 1, 2023.) webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8158.pdf Senate Bill No. 2883 Seveney, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE RHODE ISLAND BROADBAND DEVELOPMENT PROGRAM (Establishes a program to increase the adoption of broadband services for local and statewide entities, both public and private, to be funded by federal funds and state appropriations.) webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2883.pdf The General Assembly will observe April break next week (April 18-22).
Last Week at the State House The full Senate voted 31-4 to pass S.2243, An Act Relating to Labor and Labor Relations – Rhode Island Parental Leave Act, which increases employee parental leave from thirteen weeks to twenty-four weeks over a two-year period. (voting against were Senators de la Cruz, Morgan, Paolino and Rogers). Under current law, employers with fifty or more employees fall under parental leave; and employees become eligible for the leave after working for one year with the employer. S.2243 does not change the thresholds for number of employees or time of work required for eligibility. The Senate Labor Committee passed S.2816, An Act Related to Labor and Labor Relations – Employment Security, a bill that extends the partial unemployment insurance benefits put into place during the pandemic. S.2816 extends the increase in the total amount of earnings a partial -unemployment insurance claimant can receive before being disqualified for benefits. It also extends the increase in the amount of earnings that is disregarded when calculating the claimant’s weekly benefit. These additional benefits are set to expire June 30, 2022. S.2816 extends the benefits to June 30, 2023. The full Senate will vote on S.2816 Tuesday, April 12th The remainder of the bills reported in last week’s UTD were held for further study. This Week at the State House Tuesday, April 12th The Senate Finance Committee will meet Tuesday at the Rise (approximately 4:30 pm) to take testimony on the Governor’s proposal to give $13 million to the Small Business Financial and Technical Assistance Program for items such as upgrading point-of-sale systems, developing e-commerce platforms, and improving technology. The Committee will also hear testimony on S.2455, An Act Relating to Corporations, Associations and Partnerships, that calls for the elimination of the minimum tax upon corporations, nonprofit corporations, and limited liability companies for the tax year in which the secretary of state certifies the entity's dissolution; and S.2850, An Act Relating to Taxation, that increases the corporate tax rate to 7.5% (from 7%) and decreases the corporate minimum tax to $200 (from $400). Written testimony can be submitted at the following address: jplume@rilegislature.gov Wednesday, April 13th Senate Labor will meet at 4:00 pm in Room 211 to consider whether to change the definition of “employee” for the purposes of workers’ compensation, unemployment insurance and TDI qualification. S.2861, An Act Relating to Labor and Labor Relations – Minimum Wages, proposes to adopt what is sometimes referred to as the “ABC” test. A person would be deemed an “employee” unless the person can meet all three tests: (1) the person is free from control and direction of the hiring entity (2) the person performs work that is outside the usual course of the hiring entity’s business; AND (3) the person is customarily engaged in an independently established trade, occupation or business of the same nature as that involved in the work performed. Use of the ABC test would make it very difficult for some professions to work as an independent contractor. For example, an independent computer technology person could not work as an independent contractor for a business that has an IT person already on staff, since it would not qualify as outside the usual course of business. Any business with a government affairs staff person, would likely not be able to hire an independent lobbyist. It is difficult to imagine all of the possible contractors that may get swept up and reclassified as an employee of multiple businesses. If you have concerns about this bill, please contact your Senator and submit written testimony to SLegislation@rilegislature.gov The House Judiciary Committee will meet at the Rise (approximately 4:30 pm) to consider H.7677, An Act Relating to Labor and Labor Relations – Payment of Wages. H.7677, submitted at the request of the Attorney General, creates a felony offense for knowing and willfully failing to pay an employee on the designated pay day, or for failing to pay an employee the amount of wages owed at the next pay day following termination. If the value of the wages owed is between $1500 and $5000 the penalty is up to three years imprisonment or a fine of twice the value of the wages, or both. If the value is between $5000 and $10,000, the penalty is up to six years in prison and a fine of twice the wages, or both. If the value is over $10,000, the penalty is up to ten years in prison and a fine of twice the wages, or both. The bill also creates a felony penalty for employers that knowing and willfully misclassify an employee as an independent contractor. The first knowing or willful violation brings a penalty of up to three years in prison or a fine of up to two times the value of the wages or $10,000, whichever is greater, or both. The second knowing or willful offense carries a penalty of up to five years in prison or a fine of up to three times the value of the wages or $20,000, whichever is greater, or both. Testimony can be emailed to HouseJudiciary@rilegislature.gov Please include the bill number, your name, position and company in the subject line. The other bill of interest in H.8014, An Act Relating to Labor and Labor Relations – Labor Disputes. H.8014 bans employers from contacting the police “for the purpose of harassing or otherwise disrupting participants of a labor dispute.” The penalty for violating this provision would be a fine of up to $500 “for each person harassed.” The House Finance Committee is also meeting Wednesday at the Rise. H.6658, An Act Relating to Taxation, changes the interest rate for underpayments of taxes to prime plus six percent with a maximum rate of 18% instead of 21%. The current law calls for a rate between 18% and 21%. H.7444, An Act Relating to Labor and Labor Relations – Temporary Disability Insurance, proposes numerous changes to the TDI system. The bill allows self-employed individuals to participate in TDI. Self-employed individuals become eligible to collect benefits after financially contributing to the program for 12 months. H.7444 also changes the contributions made by employees. For each calendar year prior to 2023, the taxable wage is the greater of $38,000 or the annual earnings needed to qualify for the maximum weekly benefit amount. Starting January 1, 2023, the wage base would jump to the greater of $250,000 or the annual earning needed by the individual to qualify for the maximum weekly benefit amount AND the maximum duration allow under law. Benefits to be paid are tiered. Individual whose average wage is minimum wage would receive a benefit of 90% of that average weekly wage. For individuals whose average wage is two times the minimum wage the benefit payable would be 75% of the weekly wage. All other claimants remain at the current benefit rate: 4.62% of the wages paid in the highest quarter of the claimant’s base period. At this time, claims with a benefit year begin date effective 1/2/22 or later, $978.00 is the maximum benefit rate and the minimum benefit rate is $114. Testimony for this hearing can be emailed to: HouseFinance@rilegislature.gov Please include the bill number, your name, position on the bill, and company in the subject line. The following new bill has been filed: House Bill No. 8096 Phillips, McEntee, Hawkins, Costantino, Corvese, Solomon, Cardillo, Cortvriend, Filippi, Fenton-Fung, AN ACT RELATING TO TAXATION -- STATE TAX OFFICIALS (Waives interest and penalties on the taxable portion of loans taxed or forgiven under the Paycheck Protection Program during tax years 2020 and 2021, provided any tax due is paid by March 31, 2022 and March 31, 2023, respectively.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8096.pdf Senate Bill No. 2837 Quezada, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- FILING OF ASSUMED NAME (Makes amendments necessary to use the term "trade name" rather than "assumed name", for purposes of the commercial law chapter on filing an assumed name, and provides for the administration and regulation of the use of trade names.) http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2837.pdf Senate Bill No. 2845 Lombardo, Pearson, Ciccone, McCaffrey, Goodwin, Lombardi, Picard, Gallo, Sosnowski, Felag, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX (Suspends the tax on fuel or manufactured biodiesel fuel sold or used from April 1, 2022 to June 30, 2022, and requires the seller to reduce the per-gallon price of fuel or manufactured biodiesel fuel by a sum equal to the tax abatement.) http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2845.pdf Senate Bill No. 2850 Zurier, AN ACT RELATION TO TAXATION -- BUSINESS CORPORATION TAX (Increases the amount each corporation pays on state tax to seven and one half percent (7.5%) of net income beginning on or after January 1, 2023, and reduce the minimum tax to two hundred dollars ($200).) http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2850.pdf Senate Bill No. 2861 Quezada, Euer, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (For proposed wages, workers' compensation, temporary disability and unemployment benefits this act creates a new definition for "employee") http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2861.pdf House Bill No. 8119 Morales, Henries, Felix, Giraldo, McGaw, Potter, Lombardi, Batista, Ranglin-Vassell, Tanzi, AN ACT RELATING TO HEALTH AND SAFETY -- COMPREHENSIVE HEALTH INSURANCE PROGRAM (Establishes a universal, comprehensive, affordable single-payer health care insurance program and helps control health care costs, which would be referred to as, "the Rhode Island Comprehensive Health Insurance Program" (RICHIP).) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8119.pdf House Bill No. 8120 Alzate, Kazarian, Henries, Giraldo, Morales, Felix, Potter, McEntee, Williams, Batista, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Mandates insurance policies, provides coverage to diagnose & treat infertility for women between 25 & 42 years, including pre-implantation genetic diagnosis (PGD) in conjunction with in vitro fertilization (IVF).) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8120.pdf Last Week at the State House
All of the bills mention in last week’s edition were held for further study: S.2243 (parental leave expansion), S.2245 (TDI expansion), S.2130 (employee commuter benefits), S.2075 (employer tax for Children Relief Fund), and S.2274 (increase renewable source for electricity). State’s Landfill Update – RI Resource Recovery provided an update on the status of the State’s landfill. The good news is that the life expectancy of the site has been extended from 2036 to 2040. The extension was achieved by increasing the fees for disposal. Because the fees were so low, the landfill was attracting customers from all over the state. With the increase in fees, certain customers found it more feasible to use other landfill sites for disposal needs. The landfill takes in 650,000 tons of waste a year. Approximately 23% of the items placed into recycling bins are contaminated and make their way back to the landfill. This Week at the State House Wednesday, April 6th The Chamber has been asking, and the House Oversight Committee has answered the call. On Wednesday at 1:30pm in the House Lounge, the Committee will hear from a number of agencies concerning renewable energy programs in Rhode Island. Policy programs from 100% renewable electricity supply, to electric vehicle sale requirements, to electrification of all buildings in the state are up for consideration. Rhode Island has one of the highest electricity rates in the country. If the transition to renewable energy is not planned out carefully and data driven, the economy will suffer and supply may not keep pace with demand. The Committee will hear from: Linda George, Administrator of the Division of Public Utilities; Karen Stewart, Renewable Energy Fund Program Director for RI Commerce Corporation; and Chris Kearns, Policy and Legislative Liaison for the Office of Energy Resources. The meeting will be live streamed at https://www.rilegislature.gov/CapTV/Pages/default.aspx The Senate Labor Committee will hear a bill requested by the Rhode Island Department of Labor. S.2816, An Act Related to Labor and Labor Relations – Employment Security, extends the partial unemployment insurance benefits put into place during the pandemic. S.2816 extends the increase in the total amount of earning a partial -unemployment insurance claimant can receive before being disqualified for benefits. It also extends the increase in the amount of earnings that is disregarded when calculating the claimant’s weekly benefit. These additional benefits are set to expire June 30, 2022. S.2816 would extend the benefits to June 30, 2023. The hearing will take place at 4:00 pm in room 211 at the state house. Thursday, April 7th Two committee meetings of interest are scheduled for Thursday – Senate Commerce and House Labor. Senate Commerce, scheduled to meet at the Rise (approximately 4:30 pm) in room 310, will take testimony S.2688, An Act Relating to Labor and Labor Relations – Consumer Credit History Employment Protection Act, prohibits employers from asking questions about a job applicant’s financial past or from checking their credit history. There are exemptions for those seeking jobs where a credit check is required under state or federal law, or a national security clearance; where the person would have signatory authority over third parties worth $10,000 or more; non-clerical positions with access to trade secrets; or positions with the ability to modify digital security systems. If the job falls within an exemption, the employer must inform the applicant and obtain written permission prior to running the credit check. The House Labor Committee will meet at the Rise in room 101 on Thursday. What is expected to be a busy and potentially long meeting will include the following bills:
If you wish to submit written testimony on any of these bills, email your name, bill number and position (in the subject line), along with your testimony, to HouseLabor@rilegislature.gov Testimony should be submitted by 1:00 pm, Thursday. The following new bill has been filed: House Bill No. 8074 Solomon, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- LABOR STANDARDS IN RENEWABLE ENERGY PROJECTS (Established labor standards applicable to renewable energy projects and conditions/procedures for applicants related to labor agreements with enforcement by department of labor and training (DLT).) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8074.pdf |
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