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  • Coronavirus (COVID-19)

SBA to Re-Open Paycheck Protection Program to Small Lenders

1/14/2021

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SBA to Re-Open Paycheck Protection Program to Small Lenders on
Friday, January 15 - All Lenders on Tuesday, January 19
The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, will re-open the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9:00 a.m. EST.
The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.

www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program?utm_medium=email&utm_source=govdelivery

Earlier in the week, SBA granted dedicated PPP access to Community Financial Institutions (CFIs) which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries as part of the agency’s ongoing efforts to reach underserved and minority small businesses.
On Friday, SBA will continue its emphasis on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including community banks, credit unions, and farm credit institutions. Moreover, the agency also plans to have dedicated service hours for these smaller lenders after the portal fully re-opens next week.

First Draw PPP Loans are for those borrowers who have not received a PPP loan before August 8, 2020. The first round of the PPP, which ran from March to August 2020, was a historic success helping 5.2 million small businesses keep 51 million American workers employed.

Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.


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Under the Dome - Major Changes at the STate HOuse

1/11/2021

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Major Changes at the State House
 
It is a new year and it brings with it a potential new Governor, a new Speaker of the House Joe Shekarchi and many new members of the Rhode Island House and Senate. 
 
The Senate will meet Tuesday, January 12th at 4:00 pm.  Members of the Senate will begin filing new bills.  Committee assignments are also expected to be announced this week.  The House is set meet January 19th, although the House is accepting bill filings from members now.
 
The first bill filed in the House for 2021 was H.5000.  The bill requires the House and the Senate members to vote, in what is called the Grand Committee, to fill any vacancy in the Lieutenant Governor office.  This comes after Governor Raimondo agreed to accept President-elect Biden’s nomination as Secretary of Commerce.   The Rhode Island Constitution states, “ The governor shall, by and with the advice and consent of the senate, appoint all officers of the state whose appointment is not herein otherwise provided for and all members of any board,  commission or other state or quasi-public entity which exercises executive power under the laws of this state; but the general assembly may by law vest the appointment of such inferior officers, as they deem proper, in the governor, or within their respective departments in the other general officers, the judiciary or in the heads of  departments.”  The Constitution does not specifically state how a Lt. Governor vacancy is to be filled, so the Governor’s appointment provision would seem to govern.  
The timing of the confirmation process in Washington will be key to Rhode Island.  Last month, the legislature passed a budget that included the deferral of the Governor’s FY2022 budget submission requirement to March instead of January.  If Raimondo leaves prior to the March deadline, then the budget should be delivered by current Lt. Governor Dan McKee.  The Chamber will also be watching to see which members of Governor Raimondo’s staff are offered positions in Washington, and what changes will come with a McKee governorship.
 
 
CHAMBER MEMBER ACTION REQUEST - Preparations for 2021 Session
 
As stated in the last edition of UTD, the 2021 legislative session will be very different.  The House plans to meet at the Veterans’ Auditorium; and the Senate plans to meet at RI Community College.  Hearings will likely be at the State House, but testimony will have to be submitted in writing, or orally through virtual media.  Meetings with legislators will likely also take place virtually. 
 
The Chamber may be calling upon you more than ever before.  We are asking for your assistance as we prepare for this new session.  Please go to https://vote.sos.ri.gov and click on “Find Your Elected Officials.”  Enter your name, birthdate and zip code.  Find your State Representative and State Senator for your home address (if you live in Rhode Island).  Email your name and the legislators name to info@eastbaychamberri.org.  The Chamber will be compiling a database for future grassroots efforts.  If you also know a legislator who lives in another district, please send that information to the Chamber as well and we will include it in the database.
 
Thank you for your help!

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PAYCHECK PROTECTION PROGRAM (PPP)    Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns

1/7/2021

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The Small Business Administration (SBA) is dedicated to helping sustain our nation’s small businesses
and to supporting their tens of millions of employees. During these unprecedented times brought on
by the COVID-19 global pandemic, SBA has worked tirelessly and closely with Congress, with
borrowers, and with lenders of all sizes – including regional and community banks, Farm Credit System
lenders, credit unions, fintechs, community development financial institutions (CDFIs), and minority
depository institutions (MDIs) – to maximize access to the Paycheck Protection Program (PPP or
Program). SBA is continuing to encourage and support these efforts that have benefitted the smallest
businesses and underserved communities.
The first round of the PPP supported the employment of 51 million American workers and over 80
percent of small business payroll across all 50 states and territories. More than 87 percent of loans
have been for $150,000 or less, with an average loan size of $101,000 – demonstrating the accessibility
of the PPP to even the smallest businesses. PPP loans have been broadly distributed across diverse
areas of the economy, with 27 percent of the funds going to low- and moderate-income communities,
which is in proportion to their percentage of the population. More than 70 percent of PPP loans have
been made to businesses with fewer than 10 employees. Over $80 billion, or 15 percent of the total
PPP loan amount, has been disbursed to small businesses in rural communities. Small businesses in
Historically Underutilized Business Zones (HUBZones) have received more than $130 billion in PPP
funding, accounting for more than 25 percent of all PPP loan dollars. In addition, more than 430 CDFIs
and MDIs across the country have made over 221,000 PPP loans for more than $16.4 billion.
Building on the success of the first round of PPP, SBA is continuing to address potential barriers to
access to capital for minority, underserved, veteran, and women-owned business concerns.
In the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (Economic Aid Act), our
partners in Congress have set aside funds for new and smaller borrowers, for borrowers in low- and
moderate-income communities, and for community and smaller lenders. These set asides include:
• $15 billion across first and second draw PPP loans for lending by community financial
institutions;
• $15 billion across first and second draw PPP loans for lending by Insured Depository
Institutions, Credit Unions, and Farm Credit System Institutions with consolidated assets of
less than $10 billion;
• $35 billion for new first draw PPP borrowers; and
• $15 billion and $25 billion for first draw and second draw PPP loans, respectively, for borrowers
with a maximum of 10 employees or for loans less than $250,000 to borrowers in low-or
moderate-income neighborhoods. SBA has determined that at least 25 percent of each of those
set-asides will go to each one of the groups: loans to borrowers with a maximum of 10 
 PAYCHECK PRemployees and loans less than $250,000 to borrowers in low-or moderate-income
neighborhoods.
To efficiently and effectively implement the Economic Aid Act and to ensure increased access to PPP
for minority, underserved, veteran, and women-owned business concerns, SBA is undertaking the
following steps:
• Accept PPP loan applications only from community financial institutions for at least the first
two days when the PPP loan portal re-opens;
• Direct Lender Match borrower inquiries to small lenders who can aid traditionally underserved
communities;
• Match small businesses through Lender Match with Certified Development Companies (CDCs),
Farm Credit System lenders, microloan intermediaries, and traditional smaller asset size
lenders;
• Continue setting aside dedicated hours to process and assist our smallest PPP lenders with
their PPP loans;
• Continue to strongly encourage CDFIs and minority-, women-, veteran-, and military-owned
lenders to apply to become PPP lenders. SBA will give full and prompt consideration to these
applications to become PPP lenders consistent with program guidelines, including in cases
where the lender does not meet all of the requirements listed on the updated SBA Form 3507;
• Continue to work with the Board of Governors of the Federal Reserve System on the PPP
Liquidity Facility to enable PPP lenders, including nonbank lenders, to pledge PPP loans to the
Federal Reserve as collateral for Federal Reserve borrowings to enhance lender liquidity and
enable PPP lenders to expand their lending capacity;
• Promote awareness of these policies and procedures via traditional media methods, SBA social
media accounts and guidance to lenders before the formal opening of SBA’s loan systems;
• Continue to work with our federal partners, including the Department of Agriculture, the
Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of
the Currency, the Farm Credit Administration, and the National Credit Union Administration, to
share this guidance with PPP lenders, borrowers, and the broader public;
• Continue to use SBA’s 68 district offices and network of SBA Resource Partners to further create
awareness among the public about these approaches. Minority, underserved, veteran, and
women-owned businesses that encounter difficulties in obtaining a PPP Loan should contact
their local SBA district office for assistance. A link on how to find an office near you can be
found via www.sba.gov/local-assistance.
SBA will continue to engage with all PPP lenders to maximize access to the PPP for all of America’s
eligible small businesses. To accomplish this, SBA continues to call upon its lending partners and asks
that they redouble their efforts to assist eligible borrowers in underserved and disadvantaged
communities, allowing us to further expand economic opportunity. In particular, all PPP lenders are
strongly encouraged to:
• Continue to engage in community outreach and communication through organizations, trade
associations, and individuals that represent and serve underserved communities and minority,
veteran, and women-owned businesses. SBA will continue to lead by example on best
practices for this type of engagement; and
• Continue to fully comply with all applicable Federal, State, local, and other statutory
requirements related to fair lending.
In addition, SBA has added a demographic reporting section on the PPP borrower application. PPP
lenders should encourage borrowers to report the optional information that has been added to better
inform lenders and SBA on the success of our efforts to reach underserved, minority-owned, veteran owned, and women-owned businesses.
While the PPP has been an incredible success, there are still many more opportunities to provide
assistance to businesses who have yet to access these forgivable loans, especially as PPP re-opens for first and second draw loans. These are challenging times for our nation’s small business owners and entrepreneurs, but through our continued outreach and focused approach, we will continue to ensureaccess and opportunity for all those who need assistance. 
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program 
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At the STate House

12/14/2020

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At the State House
 
 
House Finance Committee Passes “Skinny” Budget
 
Last week, the House Finance Committee passed H.7171 SubA (on an 11-2 party-line vote), the budget for the current fiscal year.  Like everything else in 2020, this budget was unusual in that it has very little new policy initiatives, but there are items for consideration.  The full House is scheduled to vote on the legislation Wednesday starting at 3:00 p.m.  If passed, the Senate is expected to vote on it this week as well.
 
 
So what is in the budget?
 
The SubA budget is a $12.73 billion budget.  Of that amount, $4.153 billion comes from state-generated revenue.  To put that in perspective, last year's state-generated portion of the budget was $4.077 billion.  This is a maintenance budget.
 
To close the $275 million gap, from a big picture view, the SubA:
  • Swaps $120 million of general revenue expenditures for federal funds
  • Lowers previously anticipated state spending after 12/30 by $66 million.  The lowering of spending will have to be re-evaluated as time passes and the pandemic improves or worsens. 
  • Pays back $90 million of the $120 million owed to the Rainy Day Fund.  The Budget proposal delays repayment of $30 million of the amount owed to FY2022. 
  • Makes an adjustment of $70 million in surplus funds realized from the previous fiscal year. 
 
With a few miscellaneous increases in expenditures ($11 million), you get to a closure of the $275 million.
 
 
The SubA budget does not raise taxes as proposed by the Governor back in January.  It continues the phase-out of the car excise tax.  It adds personnel in the Department of Labor to deal with the increase in unemployment claims due to the pandemic.  It calls for $300 million in short-term borrowing in anticipation of receipt of taxes.
 
The SubA includes many bond questions ($400 million if voters approve all questions) to be placed on the ballot of a special election to be held March 2, 2021.  The budget includes $1.5 million for election expenses given the probability that voting will rely heavily on mail ballots.  
 
The following bond issues are proposed for voters' consideration:
 
1.  Higher Education  Total = $107.3 million
 
            This bond would include $57.3 million for repairs and new construction of a URI building to house musical, theatrical, visual and graphic arts programs; $38 million to reconstruct the Clarke Science Building at RI College; and $12 million for student support spaces at CCRI’s four campuses.
 
2.  Beach, Clean Water and Green Bond  Total = $74 million
 
            This bond question includes $33 million for capital improvements to state beaches, parks and campgrounds including Goddard Park beach, Roger Wheeler State beach, Scarborough State beach, Misquamicut State beach and Brenton Point; $4 million for I-195 infrastructure development; $4 million for up to 80% matching grants to municipalities to acquire or rehabilitate local recreational facilities; $3 million to pay for forest and farmland conservation easements; $15 million for wastewater collection and treatment upgrades, storm water improvements, water pollution control and drinking water supply improvements; $7 million for matching grants to municipalities for restoring or improving resiliency of infrastructure and vulnerable coastal habitats as well as restoring rivers and stream floodplains; $6 million to dredge the Downtown Providence River; and $2 million for Woonasquatucket River Watershed infrastructure.
 
3.  Housing   Total = $65 million to increase the availability of affordable housing and to redevelop existing structures
 
4.  Transportation  Total = $71.7 million to use for federal fund matching requirements to improve transportation infrastructure including ports, highways, roads and bridges. 
 
5.   Early Childhood Care and Education Fund   Total = $15 million for physical improvements to and development of licensed early childhood care and education facilities.  According to the bond request, in 2019, only 20% of the physical space licensed for the State’s 4 yr. old population meets the State definition of quality, and 18 cities and towns do not have any infant/toddler care options. 
 
6.  Cultural Arts & the Economy Grant Program   Total = $7 million
 
            This bond includes $2.5 million for Trinity Repertory Company; $1.5 million for RI Philharmonic; $2 million for the RI State Council on the Arts to be used for matching grants to nonprofit cultural organization that lease or own their performance space; and $1 million for a State Preservation Grant Program to assist nonprofit historic sites, museums and cultural art centers.
 
 
7.  Industrial Facilities Infrastructure  Total = $60 million
 
            Of the $60 million proposed in this bond, $40 million goes to industrial site development and infrastructure at Quonset; and $20 million goes to the Port of Davisville at Quonset to finance the Port master plan, pay for a new pier at Terminal Five, renovate Pier One and dredge the Quonset port.
 
 
Other budget items:

  • H.7171 SubA allows the Governor to delay presenting the FY2022 budget to March 11, 2021.  The extra time will hopefully provide some clarity over what Congress will or will not provide in the form of stimulus to the states, and will give time to see how the vaccine distribution affects Rhode Island’s economy. This will, however, condense next year's budget process into three and a half months.
 
  • Adjustments to revenues and expenses were made to reflect the recent “pause” and the closures that came with it.
 
  • Because the budget technically covers expenditures made since July 1, 2020, many of the COVID related programs/expenses are reflected in the budget.  For example, the budget includes $55.8 million from federal funds to support businesses experiencing disruptions related to the pandemic or the pause period.  This includes $47 million for a grant program administered by the Division of Taxation.  “To be eligible, businesses must be a locally-owned Rhode Island tax filer, been impacted by the pause period, and not have declared bankruptcy.  Applicants are eligible for total reimbursement of losses from $500 to $50,000.”  A total of $7.3 million was included for eviction diversion programs, as well as $500,000 to help property owners make residential units available to individuals experiencing homelessness.
 
  • H.7171 SubA did not include the Governor’s RIte Share employer requirement program, nor does it include the legalization of recreational marijuana.  These and many other policy issues will be up for debate in the next fiscal year budget.
 
To view the House Fiscal Staff’s 50 page summary go to:  H 7171 Sub A Running Summary.pdf (rilegislature.gov)

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At The RI State House:

12/1/2020

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At the State House 

We, at the Chamber, hope you had a wonderful Thanksgiving holiday.  


While Rhode Island enters a two-week pause for many activities, the State House is working to pass what is being referred to as a “skinny budget.”   This “skinny budget” will have to reflect the spending which has already occurred in the five months of the current fiscal year, and seek to close the gap of about $275 million that is currently estimated.  Possible short-term solutions could include the delay of the payback of money borrowed from the rainy day fund, cuts, or passage of a bond referendum requiring a vote of the State’s citizens.  Any new revenue proposals would have to reflect partial year collections, except for those that are able to capture a twelve month period – i.e. income tax changes.


Once the House Finance Committee passes a budget bill, that bill must remain on the House calendar for seven days before the full House can vote on the bill.  The bill then goes to the Senate for consideration by the Senate Finance Committee and the full Senate body.  The stated goal is to complete this process in the next three and a half weeks.  Please watch your emails for updates and requests for action, should that be necessary.


House Oversight Committee to Meet Thursday


The House Oversight Committee will meet Thursday, December 3rd from 3:00 pm – 5:00 pm.  The meeting will be televised live on Capitol Television, which can be seen on Cox Channels 15 and 61, in high definition on Cox Channel 1061, on Full Channel on Channel 15 and on Channel 34 by Verizon subscribers. It will also be live streamed at http://ritv.devosvideo.com/show?video=cd679c40105a 


The Department of Administration and the Office of Management and Budget will provide an update on actual expenditures and encumbrances of the $1.25 billion CaresAct Funds.  At the last briefing, it appeared that all but $186 million of the money was spent or encumbered, but the Funds are very fluid as the pandemic rises and falls.  The Funds must be spent before December 31, 2020, or be returned to the federal government, unless Congress takes further action.


Stefan Pryor, Secretary of CommerceRI, will also provide a “detailed review” of support programs for small businesses during the pandemic.


No public testimony will be taken at this meeting – it will be a presentation only meeting.

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A Message From the Rhode Island Governor

12/1/2020

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Rhode Island is a national leader in COVID-19 testing, but we’re always working to improve our testing systems. The demand for testing is at an all-time high and we need to adapt to handle that level of activity. So, over the next few weeks, we’re making nine major changes to our testing system:
  1. Last week, we launched a new texting system to let people know that their test results are available at portal.ri.gov/results. Going forward, if you provide your cell phone number when you sign up to get tested, you’ll receive a text message as soon as your results are available on the portal. 
  2. Over the next week, we are dramatically scaling up our daily testing volume, with the goal of doubling the number of state-run tests by the end of our two-week pause.
  3. To ensure people with symptoms can get tested quickly, we’re going to be reserving 3,000 daily tests for people with symptoms on the portal at portal.ri.gov. 
  4. Starting December 2, all asymptomatic Rhode Islanders can get tested through the portal – you no longer need to belong to a certain age group or industry to qualify. 
  5. We’re deploying our new BinaxNOW tests across the state, which doesn’t require much equipment and can process results in as little as 15 minutes. 
  6. We’re also adding more testing sites. This week, we’re opening a new, asymptomatic-only testing site at the Dunkin Donuts center. And we’re scaling up that site over the next few weeks until it has the capacity to run 5,000 daily BinaxNOW tests. 
  7. We’re using these new tests to do targeted testing in high-density communities. Last week, we launched a pilot program in Central Falls and will soon have the capacity to run 1,000 daily tests for anyone in the city community, regardless of symptoms. 
  8. Starting next week, we’re going to run cyclical tests with BinaxNOW for health care workers, teachers and students at select schools, and first responders. 
  9. Over the next month, we’ll be partnering with the Broad Institute and CIC Health to enable businesses to easily order and conduct tests for their employees.


We’re always working to build a more comprehensive, faster testing network to ensure all Rhode Islanders can easily get a test and access their results. Please, keep getting tested regularly to protect yourself and your loved ones.
We're all in this together.

-Gina Raimondo
Governor

P.S.: Information is our greatest weapon in the fight against COVID-19. If you or someone you know wants to sign up to receive these emails, you can use this link.
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At the State House

11/16/2020

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At the State House
 
The Senate Finance Committee will be meeting virtually Wednesday, November 18th at 5:00 p.m.  The meeting can be live streamed at: http://www.rilegislature.gov/CapTV/Pages/default.aspx  Written testimony will be accepted at SLegislation@rilegislature.gov  Testimony submitted prior to 3:00 PM on the 18th will be provided to the members of the committee at the hearing and will be included in the meeting records.  Testimony submitted after that time will be placed on file.
 
The Governor’s proposal for legalization of adult use marijuana is first on the agenda for the Senate Finance hearing.  Article 13 defines “adult” as an individual 21 years of age and older.  The Article establishes licensing requirements for the retail sale of marijuana in all forms.  It allows adults to legally transport 1 oz. and to possess 5 oz. at a residence.  If two or more adults live in a dwelling, they can possess, in the aggregate, 10 oz.  Owners of rental properties can, under the proposed Article, ban the smoking or vaping of marijuana on the rental property.  Violation of such a rule subjects the individual to a $150 fine by the State as well as any penalties established in writing by the landlord.  Smoking and vaping are also banned in businesses.  The Article states that no one is permitted to “undertake any task under the influence of marijuana, when doing so would constitute negligence or professional malpractice.”  It also bans smoking marijuana in a school bus, on public transportation, on school grounds, at a correctional facility, in any public place, in a drug treatment facility, or when it would affect the health or safety of children.
 
Article 13 seeks to provide employers with some protections.  It specifically states that employers do not have to provide accommodations for the use or possession of marijuana; but it does require employers to have a written policy; and that policy must be provided to employees prior to enforcing any policy.
 
The Article caps THC potency on various products, and establishes testing systems to ensure compliance.  Retail establishments cannot be close to schools.  Labels on products must warn against driving under the influence as well as to keep the product away from children.  Municipalities may adopt zoning laws that do not conflict with state law, and they can collect a municipal impact fee from marijuana establishments.
 
Taxation of marijuana is actually a sharing of net revenue.  The State gets 61% of the net revenue – the licensed retail contractor keeps 29% of the net revenue – the municipality gets 10%.
 
Lastly, anyone stopped by law enforcement for suspected driving under the influence can be asked to submit to a saliva test in addition to a blood test or breathalyzer test.
 
 
The Senate Finance Committee will also take testimony concerning two new proposed Articles to the Governor’s budget.  One bars health insurance companies from charging different premiums based on gender.  http://www.omb.ri.gov/documents/Prior%20Year%20Budgets/Operating%20Budget%202021/Amendments/13_GBA%2016%20-%20New%20Article%20-%20Relating%20to%20Accident%20and%20Sickness%20Insurance%20Policies.pdf
 
The second proposal would require health insurers to offer Medicare Supplemental Plans to individuals, regardless of whether the person has a disability.  http://www.omb.ri.gov/documents/Prior%20Year%20Budgets/Operating%20Budget%202021/Amendments/15_GBA%2018%20-%20New%20Article%20-%20Relating%20to%20Medicare%20Supplement%20Insurance%20Policies.pdf
 
S.2494, An Act Relating to Taxation – Personal Income Tax, is on the agenda Wednesday.  This act would create a new income tax bracket. The new bracket would be 6.99% on taxable income over $500,000 (the rate is now 5.99%), and any personal income tax collected on income over $500,000 would be deposited into a restricted receipt account, to be spent on education for grades kindergarten through twelfth grade.  http://webserver.rilin.state.ri.us/BillText/BillText20/SenateText20/S2494.pdf
 
S.2801, An Act Relating to Taxation – Personal Income Tax, is the final item on the committee agenda Wednesday.   This act would add one new income tax bracket. The new bracket would be a rate of 8.99% on taxable income over $400,500 (in 2011 dollars). Adjusted for inflation, the new tax bracket would apply to taxable income over approximately $475,000 (in 2020 dollars). This act would take effect on January 1, 2021. http://webserver.rilin.state.ri.us/BillText/BillText20/SenateText20/S2801.pdf
 
 
The House Committee on Oversight will meet at 3:00 p.m. on Thursday, November 19th.  The meeting will be live on Capitol Television, which can be seen on Cox Channels 15 and 61, in high definition on Cox Channel 1061, on Full Channel on Channel 15 and on Channel 34 by Verizon subscribers. It will also be live streamed at http://ritv.devosvideo.com/show?video=cd679c40105a
 
The Committee will hear from Dr. Nicole Alexander-Scott and from Governor Gina Raimondo.  COVID-19 emergency spending will be reviewed; and a discussion on future potential restrictions is on the agenda.
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Election Results Lead to Calls for New Initiatives in Rhode Island

11/9/2020

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​At the State House
 
No hearings for this week have been scheduled as of Sunday, November 8th.
 
 
Election Results Lead to Calls for New Initiatives in Rhode Island
 
As most of us probably know by now, House Speaker Nick Mattiello lost his bid for re-election, paving the way for the current Majority Leader Joe Shekarchi to take the helm in January as the next Speaker of the House.  The Democrats held a caucus – open to the media for the first time – to nominate Shekarchi for Speaker and to name Representative Chris Blazejewski as Majority Leader.  With a change in leadership usually comes a change in various chairs of committees; but those changes have not been announced yet.  Shekarchi stated in a press interview that the current fiscal year budget will get addressed in the coming weeks and that everything is on the table including tax increases and cuts.  He also announced that the House will be looking at various House rule changes.
 
The Senate Democrats also caucused last week, reaffirming support for Senate President Dominick Ruggerio and Majority Leader McCaffrey.  The Senate also announced new chairs of committees as well as a “bold” agenda for 2021.  That plan includes an increase in the minimum wage to $15, passage of a carbon tax, an increase in the personal income tax for higher earners and legalization of marijuana.  President Ruggerio was quoted, “We are in the process of developing rules changes that will enable the Senate committees to work remotely and the Senate to meet regularly so that we can pass a bold agenda early in the coming session.”
 
The new Senate committee chairs are:
  • Senate Finance – Senator Ryan Pearson (Cumberland, Lincoln)
  • Senate Judiciary – Senator Cynthia Coyne (Barrington, Bristol, East Providence)
  • Senate Commerce – Senator Susan Sosnowski (New Shoreham, South Kingstown)
  • Senate Environment and Agriculture – Senator Dawn Euer (Newport, Jamestown)
 
 
November Revenue Estimating Conference Completes Work
 
Rhode Island received some good news Friday night, as the Revenue Estimating Conference adopted revenue estimates for the current fiscal year (FY2021) and FY2022.  The conference started at 9:00 a.m. and ended at 6:00 p.m.  Key takeaways are as follows:
 
  • FY2021 Personal Income Tax is experiencing higher than expected returns.  The conference members now believes the FY2021 total will be about $1.45 billion. This amount is about $450 million more than the preliminary FY2020 (last year’s budget) close out figure.
  • Business Corporation Tax is coming in higher.  Rhode Island can expect to receive $151.3 million in this category – an increase of $27 million over last year.
  • Sales and Use Tax looks as if it will be higher as well - about $45 million higher over last year – for a total of $1.2128 billion
  • The Massachusetts ban on menthol cigarettes provided a $25 million gift to Rhode Island.  The Estimating Conference members expect to collect $155 million in cigarette taxes this year – a $25 million increase over last year
  • Revenue collections that are expected to be lower than FY2020 include taxes on financial institutions, racing and athletics, miscellaneous taxes, unclaimed property and lottery revenues.
  • At this point, the conference members believe the lottery revenues may fall by $11.3 million over last year’s numbers.  If you read the Providence Journal account of the Revenue Estimating Conference, you will see that the conference members, last May, thought the lottery revenues would be even lower at this point.  Last Friday, when they adjusted the lottery estimate based on revenues received thus far, the Lottery line item was adjusted upwards $7 million over the May, 2020 estimate
  • In the aggregate, total general revenue collections for FY2021 is now set at $4,056,425,000.  The May Revenue Estimating Conference had anticipated collections of $3,725,850,000.  For more perspective, last fiscal year the state collected $4,063,948,065.
  • Total general revenue collections for FY2022 are estimated to be $4,044,950,000.  As you can see, the FY2022 budget will be even more challenging to resolve as caseloads (spending) will likely increase back to a normal range following an end to the pandemic once a vaccine is distributed.
 
It is important to keep in mind is that FY2020 (last year’s budget) started July 1, 2019 and ended June 30, 2020.  The COVID-19 pandemic took a hit on the State’s economy starting in March, 2020.  The final good news is that the May, 2020 Revenue Estimating Conference anticipated deficit of $750 million has been revised via a $331 million revenue upgrade and a decrease in spending of $113 million.  That still leaves a deficit to resolve.
 
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Seven new measures that will take effect on Sunday, November 8, 2020

11/6/2020

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Seven new measures that will take effect on Sunday. These measures are part of a regional approach in close coordination with Massachusetts and Connecticut. Over the next two weeks, we will be closely monitoring behavioral data to see if this approach is working or if we need to impose additional restrictions.
1. Effective Sunday, a stay-at-home advisory is in effect from 10pm-5am on weeknights, and 10:30pm-5am on Fridays and Saturdays. At that time, unless you’re going to and from work or running essential errands like getting food or going to the pharmacy, you should be in your own home. Not someone else’s home – your home. We know that late-night house parties are a major factor in this second wave. And if you’re at a restaurant or bar until that time, once it closes, drive straight home. We’re not going to take a heavy hand – as always, our approach calls for voluntary compliance. But if we do see big parties at any time of day, and particularly at night, we will break them up and fine you. 

2. Also effective Sunday, all restaurants, bars, gyms, recreational facilities (such as casinos, bowling alleys, and museums), and personal services must close at 10pm on weeknights, and 10:30pm on Fridays and Saturdays. Restaurants can continue to offer takeout and drive-through after that time.

3. We’re lowering the capacity limit for indoor events and venues of assembly to 50%, with a maximum of 125 people. For outdoors, the limit will be 66%, with a maximum of 150 people. This applies to things like performing arts venues, movie theaters, and houses of worship. I’d ask everyone to consider switching to virtual worship for the next few weeks.

4. We’re reducing the limit for catered events to 25 indoors and 75 outdoors. If you already have a wedding planned in the next two weeks, we’re able to consider an exception if you contact the Department of Business Regulation. 

5. We’re reducing the capacity limit at malls and big box stores – retailers with more than 30,000 sq. ft. of space – back to the Phase 2 limit of 1 person per 150 sq. ft. Over the last few weeks, we’ve started to see more crowding at these businesses, and we anticipate that will continue to increase as we head into a big shopping season.

6. In addition to working from home when possible, we’re asking businesses to postpone or cancel nonessential work-related travel. We’re also leading by example in this regard and have put a hiatus on work-related travel for state employees.

7. We’re updating our masking guidance to require masks at all times with anyone you don’t live with. That includes anytime you leave your home – including at the gym – and private gatherings if there’s anyone there you don’t live with.

Restaurants and bars will receive between $2,000 and $10,000 based upon how much business they typically do. These businesses will need to attest that they were affected by this early closure, and then they can expect their grant from the Division of Taxation within 30 days. We know these grants might not make up for what has been an extraordinarily difficult time, but we hope it will help as we make another round of temporary sacrifices to stop the second wave.


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Relief for restaurants and bars that are subject to early-closing order

11/6/2020

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Relief for restaurants and bars that are subject to early-closing order
Division to issue grants of up to $10,000 to help make up for loss of business

PROVIDENCE — Rhode Island Governor Gina M. Raimondo today announced a relief program for
restaurants, bars, and other such businesses that have been ordered to close earlier than usual
because of the coronavirus (COVID-19) pandemic. Using federal Coronavirus Relief Funds, the
Governor authorized the payment of grants to these impacted businesses.
Under the program, the Rhode Island Department of Revenue’s Division of Taxation will provide grants to bars and restaurants adversely impacted by COVID-19.

Each such grant will range from a minimum of $2,000 to a maximum of $10,000.
Governor Raimondo developed the relief program to coincide with her Executive Order that will
mandate early shutdown for bars and restaurants: Effective on Sunday, November 8, 2020, all
restaurants, bars, and certain other facilities must end service at 10:00 p.m. on weeknights and 10:30
p.m. on Fridays and Saturdays. (Restaurants may stay open after the new closing hours for take-out
and drive-in only.)

The new provisions involving closing hours will remain in effect for two weeks, she said. They are part of a range of measures aimed at limiting the spread of the coronavirus and reducing the rising number of coronavirus cases. “We’re not alone. Cases are spiking all over the world,” Governor Raimondo said.

The relief program will be paid for through federal funds that have been made available to the states for pandemic relief. The Division of Taxation will soon post an application form that the affected businesses must complete in order to apply for a grant, and will post other details on its website.

​PLEASE DO NOT CALL THE DIVISION OF TAXATION REGARDING THIS PROGRAM. DEVELOPING INFORMATION WILL BE POSTED ON THE DIVISION’S WEBSITE: WWW.TAX.RI.GOV 
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