​An Update from the State House
As we enter the final phase of the 2019 legislative session (marked by the end of the General Assembly vacation break), we can expect bills to be voted on in committee and on the floor, and a budget to be released in early June.  The Chamber may be asking for your help to make the  voice of the business community known to legislators and to the Governor very quickly.  Please watch, not only for editions of Under the Dome, but for email alerts and calls to action.
 
Chamber Legislative Reception
Don’t forget – the Chamber of Commerce Legislative Reception will be held Wednesday, April 24th at the State House.  This is your opportunity to meet legislators and to share your thanks for their service as well as to express any legislative concerns. 
 
Timely Building Inspections
The House Corporations Committee will take testimony on H.5989, a bill that mirrors one of the Senate economic development package bills.  The hearing will be held Tuesday, at the Rise (approximately 4:30 p.m.) in Room 203.  H.5989 allows a contractor to hire a qualified third-party assistant or state inspector to perform an inspection if a municipal building official fails to perform an inspection within forty-eight (48) hours after notification of the need for the inspection; and the contractor notifies the city/town of its intent to hire someone to complete the inspection.  The contractor would pay for the third party inspection, while the city or town would pay for state inspector services.  http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5989.pdf
 
Senate Judiciary Faces Landlord Issues
If you own residential rental property, Tuesday at approximately 4:30 p.m. in Room 313, you may want to attend the Senate Judiciary hearing.  Various issues will be up for hearing such as S.30 which mandates that a landlord have a general liability policy of at least $100,000 in effect for those injured on premises due to the landlord's negligence  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0030.pdf . Failure to provide proof of insurance would preclude a landlord from proceeding on an eviction action.  S.71 prohibits residential landlords from terminating period tenancies from December 1 to February 1 and would require sixty days written notice to the elderly or disabled prior to termination of a tenancy http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0071.pdf  .  S.154 imposes a penalty against a condominium association that fails to deliver a resale certificate within ten days of a request by a unit owner http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0154.pdf .  S.231 prohibits a landlord from asking about the immigration status of a tenant, prospective tenant, occupant, or prospective occupant of residential rental property http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0231.pdf . S.479 requires real estate sellers to provide buyers with an annual building energy cost estimate and imposes a duty on sellers to conduct real estate condition inspections http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0479.pdf .
 
Senate Labor Committee Addresses Misclassification of Employees
Wednesday, the Senate Labor Committee has posted a vote on a SubA (amended version) of S.510 which called for increasing the fines for misclassifying employees to $2000 per employee and requiring the Department of Labor and Training to suspend the ability of companies to operate in Rhode Island if a company continues to misclassify employees three times within a two year period.  The Senate has posted a SubA for consideration that leaves the fine where it is today – at $400 per employee misclassified.  If the employer fails to pay the penalty as required, the license would be revoked until the fine is paid.  If an employer is found by the DLT to have violated the misclassification law three times within a two year period – each violation includes all of the employees determined to be misclassified at one time – then the license to operate in Rhode Island must be suspended for three years.  Finally, the civil penalty for misclassification of employees changes from “up to $5000 for subsequent offenses” to “not less than $10,000 for subsequent offenses.”  The SubA can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText19/Proposed19/S0510A.pdf     
 
Employer Medicaid Assessment Budget Article
The Senate Finance Committee will be meeting Thursday at the Rise (approximately 4:30 p.m.) to discuss a number of articles in the Governor’s budget.  One topic is the Governor’s Medicaid Employer Assessment.  This is the proposal – similar to the program in Massachusetts that will sunset December 31st of this year – that will assess an employer up to $1500 per employee that is accepting Medicaid services from the State.  The assessment applies to companies with 200 or more employees and would be paid on a quarterly basis.  It is important to contact your Senator if you have concerns about this budget proposal, and to let the Governor’s office know as well.  The hearing will take place in Room 211 of the State House.
 
The following bill was filed last week:
House Bill No. 6005  Fogarty, Carson, Caldwell, Cortvriend, Messier, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Requires insurance carriers, nonprofit hospital service plans, nonprofit medical service corporations and health maintenance organizations to cover the costs of breast ultrasounds and or MRI breast exams.)
 
 

​An Update from the State House
The General Assembly is on break this week.  Hearings for the week of April 22 – 26 will be released at the end of this week.  Members of the House and Senate leadership teams have been making the speaking circuit.  Marijuana legalization appears to be receiving a cool reception as the ability to implement and oversee the vast regulatory program required still appears to be in question.  The Governor’s proposed new programs also seem to be in question as the early projected revenues for FY2020 are difficult.
If you attended either of the Eggs and Issues Legislative Breakfasts, then you heard loud and clear a request from legislative leaders worth noting in this edition of Under the Dome.  A request has been made to the members of the Chamber of Commerce – please be consistent with your messages to the Governor’s office as well as to the House and Senate offices.  If an issue is positive to your business, please share that equally with all branches of government.  If an issue will harm your business, please convey that message to the Governor, the Senate Leadership and the House Leadership.  While it sounds like a small request, it has been made clear to the Chamber that it is an extremely important request.
 
Senate Passes Workplace Bills
S.90, known as the Workplace Bullying bill, was passed on the Senate floor 32-6 (Voting no – Algiere, De la Cruz, McKenney, Morgan, Paolino, Rogers).  The bill makes employers vicariously liable for any unlawful employment practice committed by their employee.  Employers are responsible for preventing and promptly correcting any bullying in the workplace which includes both physical and psychological bullying.  The definition of harm is vague, leaving employers open to lawsuits.
S.330 which requires employers of 4 or more employees to conduct sexual harassment programs for new employees within 1 month of the date of hire and all employees by September 1, 2019, also passed the Senate floor 31-7 (Voting no – Algiere, De la Cruz, McKenney, Morgan, Paolino, Raptakis, Rogers).
Both bills have been assigned to the House Labor Committee.
 
May Revenue Estimating Conference Meetings Set
The May Revenue Estimating Conference begins April 26th and ends May 10th with the adoption of a final agreement on the revenue available for the FY2020 budget.  All meetings take place in Room 35 of the State House. The conference panel is comprised of budget analysts from the Governor’s office, the House budget office and the Senate budget office.   Experts are already warning that the numbers – expected to be down – may be down even more than originally anticipated. 
 
Friday, April 26, 2019 –  Testimony  9:00 AM Cash Assistance and Medical Caseloads – Department of Human Services and Executive Office of Health and Human Services 
 
Wednesday, May 1, 2019 – Follow-up Testimony  9:00 AM Cash Assistance and Medical Caseloads – Department of Human Services and Executive Office of Health and Human Services
 
Friday, May 3, 2019 – Economic Overview and Testimony 9:00 AM (1) US and RI Economic Forecasts – IHS Markit Michael Lynch, Economist.  (2) RI Labor Market Conditions-Department of Labor and Training Donna Murray, Assistant Director, Labor Market Information Unit  (3) Consensus Economic Forecast
10:30 AM Unclaimed Property - Office of the General Treasurer Historic Structures Tax Credits - Historical Preservation and Heritage Commission Motion Picture Production Tax Credits - RI Film and Television Office Lottery Receipts - Department of Revenue, Division of Lottery Commerce Corporation Tax Credits – Commerce Corporation
1:00 PM  (1) Tax Collections – Department of Revenue, Division of Taxation   Neena Savage, State Tax Administrator.  (2)  Accruals – Accounts and Controls   Peter Keenan, State Controller
 
Monday, May 6, 2019 - Caseload Estimating Conference 9:00 AM Caseload Estimating Conference
 
Wednesday, May 8, 2019 Follow-up Testimony (if necessary) 9:00 AM (1) Tax Collections – Department of Revenue, Division of Taxation   Neena Savage, State Tax Administrator  (2) Accruals – Accounts and Controls   Peter Keenan, State Controller
 
Friday, May 10, 2019 – Revenue Estimating Conference 9:00 AM Revenue Estimating Conference
 
The following bills were filed last week:
House Bill No. 5989  Ucci, Corvese, AN ACT RELATING TO HEALTH AND SAFETY - STATE BUILDING CODE - NEW BUILDINGS AND STRUCTURES (Allows a contractor or builder to hire a qualified third-party assistant or state inspector to perform an inspection if a building official fails to perform an inspection within forty-eight (48) hours after notification.)
 
 
House Bill No. 5993  Caldwell, AN ACT RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES (Allows the town of East Greenwich to adopt a flexible tiered tax classification system regardless of whether it is a revaluation or update year and also to provide an exemption to small businesses for tangible personal property taxes.)
 
House Bill No. 5996  Slater, Kislak, Almeida, Diaz, Hull, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE--PROCEDURE GENERALLY -- JUDGMENTS, ORDERS, AND DECREES (Provides interest on civil actions be calculated at a rate equal to weekly average one year constant maturity Treasury yield, as published by Board of Governors of Federal Reserve System, for the calendar week preceding the date of the judgment.)
 
House Bill No. 6004  Phillips, Shekarchi, Corvese, Edwards, Solomon, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- REGISTRATION OF VEHICLES (Permits the division of motor vehicles to suspend the registration of a motor carrier upon receiving notice that the carrier has failed to obtain workers' compensation insurance.)
 
Senate Bill No. 803  Ruggerio, McCaffrey, Lynch Prata, Conley, Ciccone, AN ACT RELATING TO TOWNS AND CITIES (Establishes special economic development districts.)

An Update from the State House
This week is the last week before legislative vacation break which takes place April 15-19.  Following the break, we can expect to see committees voting on bills and sending them to the House and Senate floor for consideration.  The final Revenue Estimating Conference has been scheduled for May 10th at 9:00 a.m.  This day-long meeting will result in a determination of the final revenues available for the FY2020 budget, allowing lawmakers and staff to definitively draft a budget.
 
Small Business Loan Program Hearing
Part of the Senate Economic package includes a small business loan program that provides investors with a state tax credit.  On Tuesday, April 9th at the Rise, approximate 4:30 p.m. in Room 211, the Committee will hear S.55 An Act Relating to State Affairs and Government (Conley, Cano, DiPalma, Felag, and Pearson) which proposed to establish a small business development fund designed to encourage the formation of private capital investment by federally licensed investment companies in underserved small businesses, leveraged by delayed, at-risk stream of tax credits applicable against insurance premium and retaliatory taxes that can be recaptured for noncompliance with program investment requirements. Monetary penalties would exist if job creation and retention projections would be missed, and the state shares in profits above a certain level of fund returns. Investments would be designated for targeted growth industries for the state, and would be required to be diversified – no one small business would receive more than four ($4,000,000) million or twenty percent (20%) of a fund's investment authority. The investment funds would report annually, and the program would terminate after six (6) years.  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0055.pdf
 
Energy Is the Topic for Senate Environment & Agriculture
On Wednesday, April 10th, the Senate Environment & Agriculture Committee will host a presentation from the Independent System Operator of New England (ISO New England). The meeting will take place in the Senate Lounge at approximately 4:30 p.m.  ISO New England  is the independent, not-for-profit organization  authorized by the Federal Energy Regulatory Commission to oversee the  day-to-day operation of New England’s electric power generation and  transmission system, administer the region's competitive wholesale electricity markets, and manage comprehensive regional power  system planning.  This is the organization that has been increasingly warning the state of the need for additional power generation as existing facilities are closed in the New England region.  ISO does not advocate for any particular source of generation, but is responsible for ensuring energy is reliable.
S.659, (DiPalma, Goldin, Murray, Euer, Sosnowski) a Senate Resolution Requesting an Assessment of the Benefits to Rhode Island of Enactment of a Green New Deal will also be heard in the Committee Wednesday.  It calls for a “bold alternative to business as usual” in order to combat climate change.  The resolution requires the Rhode Island Green New Deal Research Council report their findings and recommendations regarding the potential benefits of green new deal initiatives to the Senate by May 15, 2019 for consideration.  Rhode Island can be proud to say that it is 49th out of 50 in state rankings of the creation of Greenhouse Gas emissions in the United States.  Vermont has the lowest emission rate.
 
State Job Growth Comparison
Some troubling statistics were recently released by the U.S. Bureau of Labor Statistics.  The following table shows the change in jobs for the 50 states and the District of Columbia.  According to Ted C. Jones, P.H.D, this analysis is based on seasonally adjusted data from the Bureau covering February, 2018 – February, 2019.  Nevada leads the way with a 3.53% job growth over the past year, while Rhode Island comes in last at a -.32%

 
 
The following bills were filed last week:
House Bill No. 5945  Edwards, Canario, Shanley, Barros, AN ACT RELATING TO HEALTH AND SAFETY -- BIOMETRIC INFORMATION PRIVACY PROTECTION ACT (Prohibits collection of biometric identifiers without consent.)
 
House Bill No. 5949  Tobon, Barros, Edwards, Johnston, Blazejewski, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- RHODE ISLAND BUSINESS CORPORATION ACT (Imposes a fee of one hundred sixty dollars ($160) for all domestic and foreign corporations for a certificate of authority to transact business in this state.)
 
House Bill No. 5957  Ranglin-Vassell, Donovan, Walsh, Barros, Diaz, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WAGES (Increases min. Wage From $9 to $15 per hour by 1/1/24 and tipped min. Wage From $3.89 to $15 per hour by 1/1/28/Further increases depend on increases in CPI/Non-payment damage awards increased from 2 to 3 times unpaid amount/SOL increased from 3 to 6 yrs.)
 
Senate Bill No. 753  DiPalma, Lombardo, Conley, Gallo, Valverde, AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES--CURRENCY TRANSMISSIONS (Adds virtual currency to the existing electronic money transmission and sale of check licenses and adds additional regulatory provisions to simplify and clarify licensing related thereto.)
 
Senate Bill No. 765  Goldin, Miller, Lawson, Satchell, Valverde, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY INSURANCE (Increases tax wage base for contributions to TDI /TCI, expands eligibility, increases benefit rates, adds sibling and grandchild in coverage benefits, increases temp caregiver weeks, and institutes fines for not reinstating an employee who uses program.)
 
Senate Bill No. 768  Picard, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- MANUFACTURING AND ECONOMIC DEVELOPMENT--TAX INCENTIVES (Establishes the "refundable investment tax credit act" to provide for a refundable investment tax credit for certain investments in the construction of facilities, acquisition of tangible property, and the training of employees in the state.)
 
Senate Bill No. 776  Archambault, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- SIZE, WEIGHT AND LOAD LIMITS--SMITHFIELD AND LINCOLN (Prohibits commercial motor trucks, with a gross weight rating of twenty-six thousand one pounds (26,001 lbs.) or more, from traveling on Limerock Road, in Smithfield and Lincoln.)
 
 

​An Update from the State House
For those who have been around the State House for a long time, the legislative activity level has made March feel like a political May.  Many of the House committees completed hearings on all of the original inventory of bills filed before the bill filing deadline.  The House Finance Committee completed hearings on all of the Governor’s budget articles, leaving only hearings on the Departments’ budgets for future days.  Of course a number of bills have been filed since the deadline (see below for the myriad of bills filed last week), but still both the House and Senate appear to be ahead of their historical schedules.  What that means, is anyone’s guess.
 
Naxolone in Public Places
Last week, the House Committee on Health, Education and Welfare listened to proponents and opponents discuss a bill to require “public places,” capable of holding 100 or more people, to keep on site “functional” naloxone boxes with a supply of the drug and one person trained to administer the drug.  The bill does include a “Good Samaritan” clause to attempt to protect entities and individuals who provide or administer the drug.  However, some outstanding issues remain.

• The cost of the product is roughly $20-$40 per box.  Federal law requires each box to have an expiration date of one year after the date of the prescription, so businesses would be required to keep track of that expiration date or run afoul of the law (“functional” box) as well as potential lawsuits since a court could consider an expired box as gross negligence.
• The drug has to be injected into the thigh or upper arm; or sprayed into the nostril. Employees may feel uncomfortable performing these tasks.
• And the other concern for businesses is that individuals under the influence of an overdose many times become violent as they come back to consciousness.  When in the field, first responders are sometimes asked to hold the victim down as the drug is administered to avoid getting hurt themselves.  If an employee or employees administer the drug and get hurt in the process, it is unclear whether will the employer’s workers’ compensation be required to cover the injury.

 
Senate Labor Takes Up Employer Assessment
On Tuesday, March 26th at the Rise (approximately 4:30 p.m.) in room 313, the Senate Finance Committee will take testimony on Article 16 of the Governor’s budget.  Section 4 of this article is the employer assessment for each employee – full or part time – that utilizes Medicaid for insurance.  It applies to companies with 300 or more employees.  An employer in this category would be assessed 10% of the employee’s wages, up to $1500, a year to be paid quarterly.  If this is of concern to your business, please contact your Senator and/or attend the hearing.
House Labor to Hear Pay Equity Bill
On Wednesday, March 27th, at the Rise (approximately 4:30 p.m.) in room 203, the House Labor Committee will take testimony on H. 5659, what has been referred to as the “pay equity” bill. 
This bill, while well intentioned, sets a legal trap for businesses. It dramatically changes the work world by requiring employers to pay employees the same - not only for “equal work” but for “comparable work.” 
Under H.5659, if a wage differential exists, and the employer does not have a seniority or merit system written policy, the burden to prove that the differential is legal shifts to the employer.  That burden can only be overcome by proving the following:
1.  The reason for the differential is for some reason other than race, color, religion, sex, sexual orientation, gender identity or expression, disability, age, or ancestral origin;
2.  The reason is job-related to the position in question; AND
3.  It is a “business necessity” which means essential to effective job performance; however, if the employee can demonstrate that an alternative exists to the pay differential and the employer refused to accept the alternative then the employer loses the case.
 
This year’s bill does include an allowance for pay differentials due to education, travel requirements, training, or shift differential (these are positive changes over last year’s bill)
 
If the employer fails to prove all three requirements to the Department of Labor and Training then the employee is entitled to unpaid wages – meaning whatever the other employee was getting paid – compensatory damages and liquidated damages up to three times the amount of unpaid wages and benefits deemed to be owed.  There is also and additional penalty paid to the DLT - $2500 for the first violation; $3000 for the second violation; $5000 for subsequent violations.  The language does provide for some flexibility to lower the fine for small businesses and good faith efforts which includes conducting a wage audit every 3 years.
 
Finally, the bill allows employers to ask for wage history but they cannot rely on the history when establishing the employee’s wage.  In reality, this means no employer should ask for wage history. 
 
 
The following bills were filed last week:
House Bill No. 5857  Marszalkowski, Morin, Vella-Wilkinson, AN ACT RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY INSURANCE - CONTRIBUTIONS (Permits employees who are covered by employer sponsored disability insurance programs to elect to be exempt from the state temporary disability insurance program, provided the employer has submitted documentation to the director confirming such coverage.)
 
House Bill No. 5869  Bennett, Handy, Kislak, Donovan, Carson, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2019 (Establishes a fee on companies that sell fossil fuels in Rhode Island for consumption or distribution within the state and establishes an "economic and climate resilience fund" to disburse the collected funds.)
 
House Bill No. 5886  O'Brien, Amore, Corvese, Ucci, Morin, AN ACT RELATING TO CRIMINAL OFFENSES -- GAMBLING AND LOTTERIES (Allows social gaming in private residences and in public taverns or private clubs so long as the gambling is incidental to a bona fide social relationship between the participants and only participants receive anything of value.)
 
House Bill No. 5892  Edwards, Kennedy, Casimiro, Cortvriend, Cassar, AN ACT RELATING TO HOLIDAYS AND DAYS OF SPECIAL OBSERVANCE (Expands definition of "employee" to include a caterer licensed by the department of health and division of taxation and food truck.)
 
Senate Bill No. 643  Goldin, Miller, Satchell, Valverde, Lawson, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY INSURANCE (Increases tax wage base for contributions to TDI /TCI, expands eligibility, increases benefit rates, adds sibling and grandchild in coverage benefits, increases temp caregiver weeks, and institutes fines for not reinstating an employee who uses program.)
 
 
Senate Bill No. 653  Gallo, Goodwin, Pearson, Quezada, Satchell, AN ACT RELATING TO EDUCATION - SCHOOL COMMITTEES AND SUPERINTENDENTS (Establishes courses that include instruction in career and technical education programs.)
 
Senate Bill No. 658  Euer, McCaffrey, Sosnowski, Goodwin, Conley, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND GLOBAL WARMING SOLUTIONS ACT (Establishes the Rhode Island global warming solutions act to reduce carbon emissions across various sectors of the local economy.)
 
Senate Bill No. 662  Sosnowski, McCaffrey, Conley, Euer, Goldin, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2019 (Establishes a fee on companies that sell fossil fuels in Rhode Island for consumption or distribution within the state and establishes an "economic and climate resilience fund" to disburse the collected funds.)
 
Senate Bill No. 679  Goodwin, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Prohibits cost sharing for persons forty-five (45) years or older for colorectal screening examinations, laboratory tests and colonoscopies covered by health insurance policies.)
 
Senate Bill No. 687  Ruggerio, Lombardi, McCaffrey, Goodwin, Pearson, AN ACT RELATING TO HEALTH AND SAFETY - STATE BUILDING CODE - NEW BUILDINGS AND STRUCTURES (Allows a contractor or builder to hire a qualified third-party assistant or state inspector to perform an inspection if a building official fails to perform an inspection within forty-eight (48) hours after notification.)
 
Senate Bill No. 690  Crowley, McCaffrey, AN ACT RELATING TO HEALTH AND SAFETY - STATE BUILDING CODE (Amends the number of communities who may combine to appoint a building official and prohibits requiring a building official to perform duties not in the building code when building code duties are pending.)
 
Senate Bill No. 698  Goodwin, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND NONCOMPETITION AGREEMENT ACT (Creates a comprehensive statutory scheme to address all aspects of noncompetition agreements.)
 
Senate Resolution No. 711  Lawson, Nesselbush, Metts, Murray, Valverde, SENATE RESOLUTION RESPECTFULLY REQUESTING THE GOVERNOR’S WORKFORCE BOARD TO WORK WITH THE RHODE ISLAND DEPARTMENT OF LABOR AND TRAINING TO DEVELOP A REPORT ON THE FEASIBILITY OF EXPANDING NON-TRADE REGISTERED APPRENTICESHIP PROGRAMS IN RHODE ISLAND
 
Senate Bill No. 713  Ciccone, Miller, Goodwin, McCaffrey, Lynch Prata, AN ACT RELATING TO PROPERTY AND WORKS - LABOR AND PAYMENT OF DEBTS BY CONTRACTORS (Requires builders on state public school contracts $5,000,000 or more to have 15% of the labor performed by apprentices, and sets forth other consequential requirements for such contracts.)
 
Senate Bill No. 714  Coyne, Conley, Sosnowski, Sheehan, McKenney, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- GOVERNOR'S WORKFORCE BOARD RHODE ISLAND (Requires the workforce board to fund a non-trade apprenticeship incentive program in fisheries.)
 
Senate Bill No. 722  Metts, Goodwin, Miller, AN ACT RELATING TO TOWNS AND CITIES -- HOUSING MAINTENANCE AND OCCUPANCY CODE (Places responsibility on landlords to house evicted tenants due to landlord neglect/gives cities/towns revolving fund account flexibility/allows municipal lien similar to property taxes for action against property.)
 
Senate Bill No. 725  Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MECHANICAL TRADES (Adds thermal systems insulation workers, apprentices, journeypersons, contractors and masters to the mechanical trades' regulation chapter of the general laws.)
 
Senate Bill No. 726  Cano, Goodwin, Ciccone, Lombardi, Goldin, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- APPRENTICESHIPS (Comprehensively amends the state's apprenticeship laws to make them easier to understand and be more consistent with each other and applicable federal regulations.)
 
Senate Bill No. 727  Lombardi, Lombardo, Ciccone, Archambault, McCaffrey, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MECHANICAL TRADES (Allows the holder of a valid master mechanical trade license to perform repair or renovation work on certain large air conditioning equipment but must subcontract the work if it includes new construction.)

​An Update from the State House
 
Business Health Care Assessment Hearing
The House Finance Committee will take testimony on Article 16, Section 4 of the Governor’s budget on Tuesday March 19th, at the Rise – approximately 4:30 pm.  Under The Dome featured this item last week, but the issue is on the hearing schedule today. This section places a tax, on any employer with 300 or more employees, for each full or part-time employee that is receiving Medicaid assistance.  The assessment is equal to 10% of the employee’s wage up to $1500 a year.  So if an employee is paid $15,000.00 a year or more, and the employee is on Medicaid, the employer will receive a quarterly tax bill of $325.  Working adults with disabilities are exempt as are non-profit organizations and government entities.  It is not clear if non-profit means only 501(c)3 organizations.  There is no safe harbor provision for employers who offered the employee health insurance and the employee refused coverage.  Employers are barred from taking any adverse action against an employee that triggers the tax.  Lastly, there is no avenue for an employer to determine how many employees are enrolled in Medicaid prior to receiving the quarterly tax bill.
The Chamber strongly encourages you to contact your legislator if this issue is of concern to your business.
 
Senate Unveils Economic Package
On Tuesday, the Senate held a press conference to release a package of proposed bills intended to improve Rhode Island’s economic climate.  The bills fall into seven categories:
1.  Speed up Building Inspections for Development
*  Limit the sharing of Building Officials to two communities and bar Building Officials from performing non-building code work until code work is complete
*  Allow a contractor to hire a qualified third party inspector or a state inspector to inspect work when a Building Official fails to inspect a unit within 48 hours of an inspection request.  If a state inspector is utilized, the Town or City must reimburse the state for the cost.  If it is a third party, then the contractor would pay.
*  Allow Building inspectors, if qualified, to sign permits for issues within their specialty
2.  Expand Apprenticeship Opportunities
*  Require school building projects valued at $5 million or more to hire contractors that have apprentices and that can guarantee that 15% of the labor hours on the job will be performed by apprentices.  An agency can lower the percentage if apprentices are not available in a particular discipline.  Require public works contracts of $1 million or more to hire companies that employ apprentices.
*  Give school committees in K-12, the power to establish policies regarding implementation of career and technical education programs into the curriculum that include knowledge of careers
*  Align state apprenticeship laws with federal language. Determine when Rhode Island shall recognize out-of-state apprentices registered elsewhere and in Rhode Island
*  Request Governor’s Workforce Board to work with the Department of Labor and Training regarding the feasibility of expanding the Workforce Board’s non-trade registered apprenticeship grant program with a report date of January 1, 2020.
3.  Create More Housing Opportunities and Incentives for Solar Energy
*  Require Cities and Towns to create comprehensive ordinances for solar-siting projects with an incentive to use sites like brownsfields, landfills, superfund sites, etc.
*  Include a housing density option for land zoned for housing developments.  Within six months, the municipality must have a plan for replacing that lost residential density elsewhere in the municipality.
*  Direct the Office of Energy Resources to recommend megawatt expansion for the Public Utility Commission (PUC) approval and mandate reimbursement for interconnecting costs, determined by PUC.
*  Sets 10 megawatt limit in residential area, 4 megawatt limit in an area of environmental concern – both may be waived by the municipality
*  Expands allowances for Accessory Dwelling Units to be built in single-family residences for more family members than are currently allowed (current law allows for those 62 years of age or older or with disabilities).  ADUs have separate kitchens, bathrooms and entryways but maintain the appearance of a single home.
*  Creates a study commission to encourage population growth with housing opportunities such as workforce housing, mixed, income neighborhoods and age-friendly housing.
4.  Prepare Students for the Workforce
*  Create a 5 year, focused strategic plan to improve student performance and provide more opportunities for kids to be exposed to science, technology, engineering, arts and math (STEAM) education.
*  Requires the Office of the Postsecondary Commissioner to demonstrate financial stability and quality academics with consideration of workforce needs when approving for-profit higher-education programs that grant certificates.
5.  Enhance Rhode Island’s Seafood Industry
*  Establish a “Right to Fish” law similar to the “Right to Farm” law to ensure local fishers and aquaculturists can’t be found to be public nuisance due to odor or noise of seafood or equipment
*  Include fisheries in the apprenticeship program to encourage the next generation of fishers
*  Reactivate the Senate Task Force on Fisheries to review statutes and regulations of the industry
6.  Help Small Businesses and Breweries Grow
            *  Raise craft beer limits for sale to a full case of 24 beers for 16 oz. cans
*  Allow investors to raise a fund to make loans to early-stage investments in smaller companies (fewer than 250 employees) and in return, the investors get tax credits for their capital investments.
7.  Examine Health Care Provider Reimbursement Rates
*  Gather data to examine the health care provider rates and how those rates compare to surrounding states in order to determine if the state is losing health care professionals to other states
 
 
The following bills were filed last week:
House Bill No. 5825   Azzinaro, Corvese, Costantino, Solomon, Phillips, AN ACT RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY BENEFITS AND CONTRIBUTIONS (Requires temporary disability contributions and benefits to be calculated based upon an employee's wages and salaries, that shall also include any sales commissions earned.)
 
House Bill No. 5830   Maldonado, Ucci, Barros, McNamara, Blazejewski, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- LOCAL TOBACCO CONTROL ACT (Creates a comprehensive resolution scheme for cities and towns to follow concerning the sale and control of tobacco in their communities.)
 
House Bill No. 5847   Shekarchi, Solomon, Speakman, Blazejewski, Noret, AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES--CURRENCY TRANSMISSIONS (Adds virtual currency to the existing electronic money transmission and sale of check licenses and adds additional regulatory provisions to simplify and clarify licensing related thereto.)
 
House Bill No. 5848   Jackson, McNamara, Bennett, Corvese, Noret, AN ACT RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES (Increases penalties for violations of certain wage and hour laws.)
 
House Bill No. 5851  Cortvriend, Edwards, Ruggiero, Canario, Speakman, AN ACT RELATING TO PROPERTY -- DRY DOCK FACILITIES (Amends the lien and notice procedures for facility operators of dry dock facilities.)
 
House Bill No. 5854   Nardone, Filippi, Roberts, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES--LIABILITY AND COMPUTATION (Reduces the rate for sales and use taxes from seven percent (7%) to six and one-half percent (6.5%) upon passage of federal law or court decisions authorizing states to require remote sellers to collect or remit rate or sales taxes.)
 
 
Senate Bill No. 527  (Dept. of Business Regulation)  Felag, AN ACT RELATING TO ALCOHOLIC BEVERAGES - RETAIL LICENSES (Provides that Class F and F-1 liquor licenses may be issued to corporations, LLCs, and political organizations.)
 

An Update from the State House
Last week was a difficult one at the State House as a great deal of energy was spent on the issue of abortion/choice rights.  The House tried to keep emotional debate respectful on this volatile issue during the floor consideration.  The Senate Judiciary Committee pushed through hours of testimony finishing at 6:00 a.m.  The issue could possibly consume similar attention in the upcoming weeks.
 
Senate Finance Listens to Employee Misclassification Testimony
The Senate Finance Committee heard testimony on S.510, An Act Relating to Labor and Labor Relations – Payment of Wages.  This bill, in its SubA form, increases the fine for misclassifying an employee as an independent contractor to $2000 for each separate offense (each employee being a separate offense).  If an employer is administratively found guilty of misclassifying employees 3 separate times within 2 years, the business would lose its license to operate for a period of 3 years.  Testimony was provided that a business was found guilty 4 times.  Each time the business paid its fine and continued to operate its business in the same manner.  This bill was meant to provide a larger incentive to comply with Rhode Island wage laws.  The Chamber expressed concern over the tremendous increase in the initial fine, given that an employer may believe it is acting within the bounds of the law. 
 
Business Health Care Assessment Hearing
The House Finance Committee will take testimony on Article 16, Section 4 of the Governor’s budget on Wednesday March 13th, at the Rise – approximately 4:30 pm.  This section places a tax, on any employer with 300 or more employees, for each full or part-time employee that is receiving Medicaid assistance.  The assessment is equal to 10% of the employee’s wage up to $1500 a year.  So if an employee is paid $15,000.00 a year or more, and the employee is on Medicaid, the employer will receive a quarterly tax bill of $325.  Working adults with disabilities are exempt as are non-profit organizations and government entities.  It is not clear if non-profit means only 501(c)3 organizations.  There is no safe harbor provision for employers who offered the employee health insurance and the employee refused coverage.  Employers are barred from taking any adverse action against an employee that triggers the tax.  Lastly, there is no avenue for an employer to determine how many employees are enrolled in Medicaid prior to receiving the quarterly tax bill.
The Chamber strongly encourages you to contact your legislator if this issue is of concern to your business.
 
 
 
Minimum Wage on the Agenda
Under the Dome Update - 
The House Finance Committee will not hear testimony on the Employer Assessment Wednesday. We will alert you when a hearing is scheduled. Thank you for your continued interest in Rhode Island legislative matters 
On Wednesday, March 13th at the Rise (approximately 4:30 pm) in Room 212, the Senate Finance Committee will take testimony on the following minimum wage bills:  S.174 increases the hourly minimum wage effective January 2, 2020 to eleven dollars and fifty cents ($11.50) per hour and effective January 1, 2021, to twelve dollars and fifty cents ($12.50) per hour; S.241 increases the hourly minimum wage in accordance with the Consumer Price Index for the Northeast Region for the four (4) previous fiscal years, effective January 1, 2021; S.374 incrementally increases the $3.89 per hour tipped wage to $9.00 per hour on January 1, 2023 - starting on January 1, 2024, the minimum hourly wage for tipped workers would be equal to the state's regular minimum hourly wage; and S.508 gradually increases the hourly minimum wage from $10.50 to $15 by July 1, 2023, and the hourly minimum wage for employees receiving gratuities from $3.89 an hour to $15 an hour by January 1, 2027.
 
Intoxicated Employee Bill
On Wednesday, March 13th at the Rise (approximately 4:30 pm) in Room 203, the House Labor Committee will consider H.5657, An Act Relating to Labor and Labor Relations – Workers Compensation.  The bill states that if an employer shows that an employee, at the time of the injury or death or immediately following the injury or death, had positive test results reflecting the presence of alcohol, or another controlled substance, which was not prescribed by an authorized medical practitioner or was not used as prescribed, then it shall be presumed that the employee was intoxicated at the time of the injury and that intoxication caused the injury. The burden of proof would then shift to the employee to show he/she was not intoxicated or that the death was caused by something other than intoxication. 
 
The following bills were filed last week:
House Bill No. 5551  Caldwell, Mattiello, Casey, Craven, Marszalkowski, AN ACT RELATING TO HEALTH AND SAFETY - NALOXONE PUBLIC ACCESS PROGRAM (Requires public places to have naloboxes or naloxone on the premises for access and use during emergencies by trained employees or the general public with "Good Samaritan" protections.)
 
House Bill No. 5730  Carson, Cortvriend, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES DISCLOSURES (Requires real estate sellers to provide buyers with an annual building energy cost estimate and imposes a duty on sellers to conduct real estate condition inspections.)
 
House Bill No. 5780   Slater, Diaz, Blazejewski, Maldonado, Alzate, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE PERCENTAGE OF INCOME HOME ENERGY AFFORDABILITY ACT (Creates the Percentage of Income Home Energy Affordability Program, an income-sensitive tiered subsidy program to ensure that home energy utility costs are affordable for eligible low-income households.)
 
House Bill No. 5795  Ranglin-Vassell, Walsh, Almeida, Lombardi, Slater, AN ACT RELATING TO FOOD AND DRUGS-THE RHODE ISLAND CANNABIS EQUITY ACT OF 2019 (Establishes a board and appropriates funds from the legislature to create a local cannabis equity program to allow those people who want to enter the business of selling marijuana with state funding and technical assistance to do so.)
 
House Bill No. 5810   Corvese, Ucci, Morin, Kennedy, Azzinaro, AN ACT RELATING TO COMMERCIAL LAW - UNFAIR SALES PRACTICES - GIFT CERTIFICATES (Requires issuers of gift certificates to deposit and hold funds used to purchase the gift certificate in escrow for three (3) years, or until the gift certificate is redeemed and would restrict certain redemption terms in the event of bankruptcy.)
 
House Bill No. 5814  Millea, McKiernan, O'Brien, Jacquard, AN ACT RELATING TO INSURANCE -- PAYMENT TO HEALTH CARE PROVIDERS (Allows health care providers to refuse to accept payment by virtual credit card payment (a single-use digital credit card) at least once each health insurance contract year.)
 
Senate Bill No. 398  Picard, AN ACT RELATING TO BUSINESSES AND PROFESSIONS - DESIGNERS OF INDIVIDUAL SEWAGE DISPOSAL SYSTEMS (Provides that professional engineers who are registered and authorized to practice by the Rhode Island state board of registration for professional engineers be deemed to have met the qualifications for a designer's license.)
 
Senate Bill No. 410   (Dept. of Environmental Management)  Ruggerio, Sosnowski, Euer, Coyne, Valverde, AN ACT RELATING TO HEALTH AND SAFETY - PLASTIC WASTE REDUCTION ACT (Creates the "Plastic Waste Reduction Act" designed to reduce the use of plastic bags by retail establishments by offering recyclable bag options and providing penalties for violations.)
 
Senate Bill No. 417  Coyne, Conley, Lynch Prata, Seveney, Lawson, AN ACT RELATING TO HEALTH AND SAFETY - MARIJUANA IMPACT STUDY (Creates and funds a study on the impact of the use of marijuana in this state.)
 
Senate Bill No. 418  Cano, Goldin, Valverde, Crowley, Quezada, AN ACT RELATING TO TAXATION - SUGARY DRINKS (Creates a tax on sugary drinks and creates a dedicated revenue source for programs designed to benefit public health.)
 
Senate Bill No. 431  (General Treasurer)  Ruggerio, Goodwin, Ciccone, Archambault, Conley, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- NON-ERISA COVERED PENSION PLANS (Requires that all defined pension plans which are not covered by the ERISA and have at least two hundred (200) members, comply with ERISA's annual reporting provisions.)
 
Senate Bill No. 456   Sheehan, Crowley, Seveney, Satchell, Nesselbush, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE - PROCEDURE GENERALLY - NONDISCLOSURE AGREEMENTS (Places limits on the terms that can be included in an agreement that settles a claim of sexual harassment, retaliation for reporting sexual harassment and stalking.)
 
Senate Bill No. 460  Goldin, Lynch Prata, Quezada, Goodwin, Cano, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES ACT (Changes the definition of employee and employer for purposes of the fair employment practices act, while expanding personal liability for violations.)
 
Senate Bill No. 479  Euer, Murray, Lombardo, Sosnowski, Valverde, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES DISCLOSURES (Requires real estate sellers to provide buyers with an annual building energy cost estimate and imposes a duty on sellers to conduct real estate condition inspections.)
 
Senate Bill No. 484  Morgan, Rogers, Paolino, Algiere, Raptakis, AN ACT RELATING TO LABOR AND LABOR RELATIONS (Requires most employers in Rhode Island to participate in the E/Verify employment authorization program and establishes deadlines to do so.)
 
Senate Bill No. 493   (Attorney General)  Lombardo, Archambault, Ciccone, McKenney, McCaffrey, AN ACT RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - DECEPTIVE TRADE PRACTICES (Amends the Deceptive Trade Practices Act to clarify the law's exemptions, enable individuals subject to unfair or deceptive acts/practices to recover increased damages/permit the attorney general to seek civil penalties for initial violations of the law.)
 
Senate Bill No. 505  Lombardi, Archambault, Conley, Lynch Prata, McCaffrey, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION BENEFITS (Allows employers to shift the legal burden of proof to employees in certain workers' compensation actions where intoxicating substances may be involved.)
 
Senate Bill No. 508 Quezada, Goodwin, Goldin, Cano, Euer, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Gradually increases the hourly minimum wage from $10.50 to $15 by July 1, 2023, and the hourly minimum wage for employees receiving gratuities from $3.89 an hour to $15 an hour by January 1, 2027.)
 
Senate Bill No. 509  Goldin, Ruggerio, Goodwin, Lawson, Cano, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Comprehensively addresses wage discrimination by expanding employee protections and the scope of the remedies available to employees who have experienced wage discrimination.)
 
Senate Bill No. 510   Lynch Prata, Ruggerio, McCaffrey, Goodwin, Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES - VIOLATIONS (Increases penalties for violations of certain wage and hour laws.)
 
Senate Bill No. 514  McKenney, AN ACT RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY - SEASONAL EMPLOYEES (Creates a seasonal employment designation for purposes of unemployment benefits, which would allow employers hiring employees for less than twenty (20) weeks to apply for a seasonal determination by the director of the department of labor and training.)
 
 

​An Update from the State House
 
Senate and House Finance Committees Hear Sales Tax Issues and Association Dues
Both Finance Committees heard testimony on Article 5, Section 9 of the Governor’s budget and members of both committees asked pointed questions as to how certain items were singled out for taxation expansion. This is the Article that expands the 7% sales tax to the following items:
    -  Digital  Downloads ($2.6 million) such as Audio Works like Netflix, on-demand movies, games, movie streaming; Digital Audio Works such as audio book downloads; Ringtones; Digital books
    -  Hunting, Trapping and Shooting Services ($.6 million)
    -  Lobbying Services ($.9 million)
    -  Interior Design Services ($.5 million)
    -  Commercial Buildings Services ($6.2 million) which specifically includes extermination services, commercial cleaning services, landscaping and maintenance services, carpet and upholstery clearing services and janitorial services.  These services, if performed in a private residence with a home office, are not taxable.
Please take to the time to share any concerns you might have about the commercial building services sales tax with your state representative and state senator.  Now is the time to speak up!
Questions have been raised about the Governor’s proposal to tax organization dues.  The way the budget is drafted, an argument could easily be made that any organization that covers an entity subject to a sales tax could suddenly find its dues also subject to a 7% sales tax.  For example, taxi services are subject to sales tax.  If the taxi drivers have an association to which they pay dues, then the association dues could be subject to sales tax.  That said, the Department of Revenue stated that this is not the intent.  The intent of the association dues wording is meant to attach only to rod and gun clubs.  The reason given for this particular item is based on a concern that gun clubs would include ammunition as part of its membership benefit paid by dues, thus allowing club members to skirt paying the 7% sales tax on ammunition which the budget wishes to impose.  The budget language does require re-drafting if such a proposal is to move forward.  The Department said there is no intent to tax golf club memberships, fraternal organization dues or other dues at this time. 
The Department of Revenue also suggested exempting 501(c)(3) organizations from paying sales tax on lobbyist fees.  The Chamber is not a 501(c)(3) and thus would still be subject to the tax, as would most trade associations.
 
Senate Labor To Address Misclassification of Employees
On Wednesday, March 6th at approximately 4:30 p.m. in the Senate Lounge, the Senate Labor Committee will be taking testimony on S.370, An Act Relating to Labor and Labor Relations.  S.370 increases the maximum weekly unemployment benefit rate to the higher of 57.5% of the average weekly wages paid to workers in the prior calendar year or $636 per week.  S.510, An Act Relating to Labor and Labor Relations will also be heard.  S.510 increases the penalties for misclassifying an employee to $2000 for the first offense, with each misclassified employee being a separate offense.  Any employer found to violate the law on three separate judgments on three separate dates within a 2 year period, will be subject to the loss of its licenses to operate the business in the state.  The suspension of licenses will continue for at least 3 years and until all proper wages are paid.
 
What’s in the Governor’s Budget
 
Article 15 – Children and Families

• The budget requires a mandatory school breakfast program for any public school where 70% of the students are eligible for free or reduced price meals in the prior school year.  The breakfast must be offered after the instructional day has officially begun and can be consumed in the classroom.
• Children detained in the Slater Training School are considered residents of the municipality where they lived prior to arrival at the training school.  The home municipality will be responsible for payment of the community’s per pupil special education cost to DCYF for the delivery of education services to the child while detained in the Training School.
• The Department of Health will be responsible for conducting inspections of foster homes
• RI Works Program changes include an elimination of the Department of Labor and Training oversight of individuals’ work plans.  The budget does set a lifetime limit on the adult collection of cash assistance to 48 months (children in a family or unit are not subject to the 48 month restriction). 
• Under current law child care is to be provided to every assistance receiving participant “who requires child care…in order to meet work requirements.”  The budget changes the language to provide child care assistance for every “child who is eligible for cash assistance” to ensure the adults they are living with are able to either obtain or maintain employment or meet their individual employment plans.  Starting July 1, 2019, child care services are also provided to families at 180% of federal poverty level or below to allow adults to pursue an educational degree, vocational, technical, or professional certification.

 
 
 
The following bills were filed last week:
House Bill No. 5523  Barros, AN ACT RELATING TO TAXATION - SUGARY DRINKS (Creates a tax on sugary drinks and creates a dedicated revenue source for programs designed to benefit public health.)
 
House Bill No. 5550  Casimiro, Ackerman, Shanley, Noret, Alzate, AN ACT RELATING TO HEALTH AND SAFETY (Requires various health care facilities and child care facilities to have automated external defibrillators on site.)
 
House Bill No. 5576  Shekarchi, Ackerman, Lima, Kazarian, Noret, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Provides tax relief for pass-through entities that would be unable to take a federal income tax deduction for state and local income taxes they pay on their personal tax returns.)


House Bill No. 5611  Walsh, Lombardi, Cassar, Caldwell, Fogarty, AN ACT RELATING TO HEALTH AND SAFETY -- COMPREHENSIVE HEALTH INSURANCE PROGRAM (Establishes a universal, comprehensive, affordable single-payer health care insurance program.)
 
House Bill No. 5614  Amore, Serodio, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Exempts from sales tax any amount a construction contractor charges clients for materials and supplies in connection with a construction contract.)
 
House Bill No. 5615  Noret, Serpa, Hawkins, Caldwell, Canario, AN ACT RELATING TO TAXATION -- ELECTRONIC PAYMENT OF SALES TAXES (Requires that the tax administrator credit electronic sales and use tax payments made electronically exactly when received.)
 
House Bill No. 5628  Maldonado, O'Brien, Blazejewski, Serpa, Carson, AN ACT RELATING TO WATERS AND NAVIGATION - THE CLIMATE CHANGE COASTAL ADAPTATION TRUST FUND (Establishes OSACR, a fund which provides grants to fund projects that adapt infrastructure to address climate change; assess eligibility of projects, allocation, disbursements and the fund's financing. Effective July 1, 2019.)
 
House Bill No. 5631  Marszalkowski, Cortvriend, Morin, Shanley, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE FLEET REPLACEMENT REVOLVING LOAN FUND (Requires the state to phase in the use of zero emission vehicles beginning in 2020 using state fleet replacement revolving loan funds.)
 
House Bill No. 5648  Johnston, AN ACT RELATING TO ALCOHOLIC BEVERAGES - REGULATION OF SALES (Allows license holders to restrict any person who has not reached his or her twenty first birthday from entering the licensed establishment after ten o'clock (10:00) pm.)
 
House Bill No. 5656  Williams, Shekarchi, Ackerman, Marszalkowski, Almeida, AN ACT RELATING TO PUBLIC FINANCE - RHODE ISLAND SECURE CHOICE RETIREMENT SAVINGS PROGRAM ACT (Creates voluntary retirement IRA savings program for workers requiring employers to make available to employees if no employer retirement plan offered.)
 
House Bill No. 5657  Williams, Slater, Diaz, Almeida, Alzate, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION BENEFITS (Shifts the legal burden of proof in certain workers' compensation actions involving intoxicating substances.)
 
House Bill No. 5659  Donovan, Blazejewski, Ranglin-Vassell, Craven, Casimiro, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Comprehensively addresses wage discrimination by expanding employee protections and the scope of the remedies available to employees who have experienced wage discrimination.)
 
House Bill No. 5660  Walsh, Lombardi, Lyle, Hull, Bennett, AN ACT RELATING TO LABOR AND LABOR RELATIONS - MINIMUM WAGE--GRATUITIES (Raises the minimum wage for tipped workers by fifty cents ($.50) per year commencing on January 1, 2020 until the tipped minimum wage is not less than two-thirds (2/3) of the regular minimum wage.)
 
House Bill No. 5667  Bennett, Edwards, Jacquard, Diaz, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- THE ENERGY AND CONSUMER SAVINGS ACT OF 2005 (Establishes minimum energy and water efficiency standards for certain products sold or installed in the state.)
 
House Bill No. 5671  (Dept. of Environmental Management)  McEntee, Fellela, Ucci, Costantino, Handy, AN ACT RELATING TO HEALTH AND SAFETY - PLASTIC WASTE REDUCTION ACT (Creates the "Plastic Waste Reduction Act" designed to reduce the use of plastic bags by retail establishments by offering recyclable bag options and providing penalties for violations.)
 

​House Finance Committee to Hear Sales Tax
On Thursday, February 28th at approximately 4:30 pm in Room 35, the House Finance Committee will take testimony on Article 5, Section 9 of the Governor’s budget.  This is the Article that expands the 7% sales tax to the following items:
    -  Digital  Downloads ($2.6 million) such as Audio Works like Netflix, on-demand movies, games, movie streaming; Digital Audio Works such as audio book downloads; Ringtones; Digital books
    -  Hunting, Trapping and Shooting Services ($.6 million)
    -  Lobbying Services ($.9 million)
    -  Interior Design Services ($.5 million)
    -  Commercial Buildings Services ($6.2 million) which specifically includes extermination services, commercial cleaning services, landscaping and maintenance services, carpet and upholstery clearing services and janitorial services.  These services, if performed in a private residence with a home office, are not taxable.
If you wish to testify, please come to Room 35 at the State House and sign your name on the sheet that is available.
 
What’s in the Governor’s Budget
Article 20 – Marijuana
Marijuana legalization is being discussed in so many forums that UTD has decided to skip ahead to provide an overview of this 126 page budget proposal addressing both medical marijuana and adult legalization.
The stated goal of Article 20 is to gain better control over the medical marijuana system, set limits on the potency of product sold to individuals not experiencing a medical need for cannabis, and to create a system for addressing the expected negative consequences of marijuana use.  It establishes the Office of Cannabis Regulation within the Department of Business Regulation (DBR) to regulate and enforce the provisions of the law. Interestingly, according to the Department of Business Regulation, 20% of the population uses 80% of the marijuana in Rhode Island. 
Medical Marijuana changes:

• Only RI doctors will be able to prescribe marijuana.  Today doctors in MA and CT can prescribe, leaving the Department of Health with no oversight if an over-prescribing physician is located in another state.  Patients will be required to renew their prescriptions with a RI doctor when the time to refill comes.
• Compassion centers will no longer be able to cultivate or manufacture marijuana.  They can still deliver, transfer, supply and sell paraphernalia.  The number of centers may increase from 3 to 9 with the hopes of driving down the cost through competition.  The application fee for a compassion center increases from $250 to $10,000.  To renew a license the fee increases from $5000 to $50,000.  The language includes a number of operational requirements from odor mitigation to product packaging and labeling to advertising.
• Reduces the number of plants a cardholder or a Caregiver can possess.  Before July 1, 2019, a cardholders/caregivers may have 12 mature plants and 12 immature plants with proper tags.  The person may also have 2.5 oz. of usable marijuana.  After July 1, 2019, the Governor proposes to reduce the number of plants to 6 mature and 6 immature plants, along with 3 oz. of useable marijuana.  Cardholders/caregivers would be required to obtain a registration card with DBR in order to get the necessary plant tags
• The Article proposes to allow landlords to choose whether to lease to someone who possesses, manufactures, smokes, or vaporizes marijuana in the leased premise.  This is new.  Currently, landlords can only stop a medical marijuana cardholder from cultivating on the property.  The costs associated with attempting to remove the smell that goes along with smoking marijuana is great.
• Article 20 gives a certified school nurse the authority to administer a non-smokable and non-vaporized from of medical marijuana in a school setting to a qualified patient.
• DBR is charged with setting up new licenses for medical marijuana such as a licensed processor that can obtain plants from cultivators, process it into products and sell to compassion centers.  Processors are subject to local ordinances and zoning laws; and DBR establishes product testing requirements and labeling requirements.

 
Adult Marijuana:

• Marijuana use would become legal for individuals 21 years of age and older. 
• DBR will issue licenses for cultivators (growing), processors (product manufacturers), and retailers (direct sales to end users).
• Starting January 1, 2020, it would be legal for a person at least 21 years old to obtain, transport and possess 1 oz or less of marijuana  A person would also be permitted to possess up to 5 oz. of product at his/her home in a locked box.  If there are 2 or more individuals over the age of 21 in the household, then 10 oz could be retained at home in a locked box.  
• Individuals could have product in a vehicle as long as it is in a sealed container – similar to Rhode Islands, liquor laws.
• Retailers can deliver product to an adult’s home as long as the delivery is no more than 1 oz per day to that person.
• No person can smoke, vaporize or consume marijuana/cannabis in a public place.  A violation brings a $150 administrative fine as well as the potential for a municipal fine.  No person can use in a housing unit under a city housing authority, low to moderate income housing or the Block Island Housing Board.  Lastly, individuals may not use these products around a multi-unit housing complex without the written permission of the owner or the governing body of the complex.  Violators can be evicted.
• Article 20 does provide for a “social use license.”  If a facility obtains the license, then adults can consume products in the facility
• EMPLOYERS – Employers explicitly do not have to allow use or possession of marijuana/cannabis at the worksite.  Employers can implement drug use policies which prohibit such use or possession; HOWEVER, employers cannot fire or discipline and employee for any use during an employee’s private time as long as that employee is not under the influence of the substance while at work.  This is where the difficulty comes into play.  No test exists that can determine the level of THC in a person’s blood stream.  There is no way to prove empirically that an employee ingested the drug 10 minutes ago, or 3 weeks ago.  Other states have experienced difficulties with proving under the influence unless another person saw the employee use marijuana/cannabis.
• Landlords can prohibit tenants from smoking or vaping, but they cannot prohibit the use of edibles which leave no scent.
• Penalties – Under age usage results in a $100-$500 fine, 30 hours of community service and 30 days loss of a driver’s license for the first offense; a $500 - $750 fine for a second offense as well as 40 hours of community service and a 3 month loss of a driver’s license; and for a subsequent offense the penalty includes a $750 -$1000 fine, 50 hours of community service and 1 year suspension of a driver’s license.  School may adopt disciplinary programs that include suspension, expulsion, community service and school activity prohibitions.  Selling or giving marijuana/cannabis to an underage person results in a fine of $10,000 and prison.
• Local Rule – the residents of a municipality can pass a referendum to exclude the sale of marijuana/cannabis within the municipality’s limits.  However, because the effective date is January 1, 2020, a referendum would have to be held as a special election, since the next regular election does not take place until the fall of 2020.

Marijuana Revenue

• The Governor has made is clear that this is not a revenue-maker for the state.  Most of the money expected to be received will be spent on administrative costs and costs associated with the negative consequences of marijuana use.  Why did she propose it then?  Because, with Massachusetts legalizing the products, Rhode Island would likely experience the same negative effects with no revenue to handle the issues.
• Article 20 establishes the Marijuana Trust Fund Allocation to collect taxes and fees from the adult-use marijuana program.  The Marijuana Trust Fund will be distributed as follows:  25% goes to the Departments of Health, Revenue, and Public Safety, and the Executive Office of Health and Human Services to fund regulatory activities.  Fifteen (15%) goes to cities and towns; and 60% percent goes to the general fund to fund programs and activities related to revenue collection and enforcement, substance use disorder prevention, education and public awareness campaigns, treatment and recovery support services, public health research, law enforcement support, and related technology improvements.
• Tax Revenue - the article proposes an overall tax rate of approximately 20%.  This includes a 7% percent sales tax rate, a 10% percent retail marijuana excise tax, and a weight-based excise tax to be determined.  The Governor’s office estimates $6.5 million in revenue for FY2020, and $21.9 million in revenue for FY2021.

 
The following bills were filed last week:
 
Senate Bill No. 268  Miller, Sosnowski, McCaffrey, Ruggerio, Goldin, AN ACT RELATING TO HEALTH AND SAFETY - PLASTIC WASTE REDUCTION ACT (Prohibits retail sales establishments from providing plastic checkout bags and all retail establishments from providing expanded polystyrene disposable food containers and would be enforced by municipal designees, with an opt out provision.)
 
Senate Bill No. 279  DiPalma, Seveney, Coyne, Euer, Goldin, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Exempts from sales tax any amount a construction contractor charges clients for materials and supplies in connection with a construction contract.)
 
Senate Bill No. 283  Picard, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- DISABILITY BUSINESS ENTERPRISES (Expands the existing disability business enterprises program.)
 
Senate Bill No. 290  Bell, Nesselbush, Quezada, Seveney, Murray, AN ACT RELATING TO HEALTH AND SAFETY -- COMPREHENSIVE HEALTH INSURANCE PROGRAM (Establishes a universal, comprehensive, affordable single-payer health care insurance program .)
 
Senate Bill No. 316  Goldin, Cano, Goodwin, Quezada, Miller, AN ACT RELATING TO ELECTIONS - CONDUCT OF ELECTION AND VOTING EQUIPMENT AND SUPPLIES (Requires employers to give their employees, who make a timely request, two (2) hours of paid leave to vote. This act would be enforced by the department of labor and training.)
 
Senate Bill No. 330  Cano, Goldin, Euer, Murray, Lynch Prata, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES -- SEXUAL HARASSMENT (Extends protection to domestic servants/includes retaliation as unlawful practice and requires employers of 4 or more employees to conduct sexual harassment programs for new employees within 1 month of the date of hire/all employees by September 1, 2019.)
 
Senate Bill No. 369  Lawson, Euer, Goodwin, McCaffrey, Ruggerio, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Provides health care employers with at least 18 employees, which receive certain state funding or pay an executive $1,000,000 or more annually, pay a minimum wage of $15.00.)


Senate Bill No. 370  McCaffrey, Goodwin, Ciccone, Cano, Lawson, AN ACT RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY - BENEFITS (Increases the maximum weekly unemployment benefit rate to the higher of fifty-seven and one-half percent (57.5%) of the average weekly wages paid to workers in the prior calendar year or six hundred thirty-six dollars ($636) per week.)
 
Senate Bill No. 373  Lombardi, Ciccone, Lombardo, Archambault, Lynch Prata, AN ACT RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY INSURANCE - CONTRIBUTIONS (Permits employees who are covered by employer sponsored disability insurance programs to elect to be exempt from the state temporary disability insurance program, provided the employer has submitted documentation to the director confirming such coverage)


Senate Bill No. 374  Goldin, Goodwin, Quezada, Euer, Murray, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGE--GRATUITIES (Incrementally increases from the $3.89 per hour subminimum wage for tipped workers to $9.00 per hour on January 1, 2023, Starting on January 1, 2024, the minimum hourly wage for tipped workers would be equal to the state's regular minimum hourly wage.)
 
Senate Bill No. 375  Felag, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- ELECTRICIANS (Electrical apprentices qualify for journeyperson "B" exam by successfully completing 288 hours of classroom training in a recognized trade school.)
 
Senate Bill No. 379  Ciccone, Lombardo, Gallo, McCaffrey, Goodwin, AN ACT RELATING TO ALCOHOLIC BEVERAGES - RETAIL LICENSES (Allows holders of a Class P license to purchase alcoholic beverages from either a retail or wholesale establishment in the state of Rhode Island.)
 

​Senate Finance Committee Meeting Cancelled Due to Weather
The hearing scheduled for Tuesday, February 12th was cancelled due to the inclement weather.  The Chamber expects testimony on Article 5, Section 9 of the Governor’s budget to be taken just after the February legislative break.
 
The General Assembly is on Break from February 18 – 22.
While the legislature is on break, the desk is still open to receive legislation so bills may continue to be released during the week.  
 
House Labor Takes Up Sexual Harassment Training for Employers
On February 27th at approximately 4:30 p.m. in the House Lounge, the House Labor Committee will take testimony on various workplace sexual harassment and workplace dispute bills. 
H.5343 (http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5343.pdf) requires employers with more than 50 employees to conduct sexual harassment education and training for new employees and members within 3 months of their hiring date or membership date.  New supervisors and managers must also go through a training program within 3 months of being hired or receiving the promotion.  Refresher training for all employees/members must be held every 2 years.  Training materials are to be made available to businesses, at no charge, by the Department of Administration.  H.5343 also encourages employers to participate in a survey of employees and members to determine the climate of the business. 
H.5345 (http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5345.pdf) declares it an unfair labor practice to require an employee to sign a non-disclosure agreement or a non-disparage agreement as a condition of employment, and if the issue raised is related to alleged unlawful conduct or civil rights.  This means that if an employer/employee dispute occurs, no settlement could include such a document as part of the settlement.
H.5346 (http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5346.pdf) amends the definition of employer, under the Fair Employment Practices Act, from those with four or more employees, to all employers.  It also includes volunteers, apprentices, unpaid interns and anyone under a contract for hire.
What’s in the Governor’s Budget – Article 12 Relating to Economic Development
Article 12 devotes over 50 pages to economic development programs.  In 2015, the Governor and the General Assembly created 15 programs that provided tax incentives and investment initiatives to jump start the economy.  At the time, it was partially funded by debt restructuring.
Rebuild RI Tax Credit Act – The Governor’s budget extends the sunset of the program from 2020 to 2023.  Manufacturers are more clearly defined as entities that transform raw material into a finished product for trade, but explicitly does not include an entity that merely alters stock in a warehouse for the “convenience of a customer.”
The Commerce Corporation is charged with developing a streamlined tax credit application for certified or recognized historic structures, manufacturers and affordable housing or workforce housing projects.  Historic Tax Credit projects from the 2013 program that was phased out could be considered for Rebuild RI credits under this new budget Article.
An owner of multiple, separate buildings on I-195 land could submit applications for each parcel to be considered as separate qualified development projects.
Article 12 increases the maximum aggregate sum authorized for this credit from $150 million to $250 million and authorizes the Commerce Corporation to determine how much of the aggregate should be designated for historical building and residential projects.  To date, $105 million in credits have been awarded, leaving $45 million in credits available under current law.  Should this increase in the tax credit pass, the House Fiscal staff predicts out years will require $50 million to be budgeted to cover the additional credits taken.
Commerce Corporation can use up to $250,000 per year for technical assistance for tax credit applicants.
Article 12 calls for an extension of the Rhode Island Tax Increment Financing program, the Tax Stabilization Incentive program, the First Wave Closing Fund Act, the 195 Redevelopment Project Fund, the Small Business Assistance Program, the “Stay Invested in RI Wavemaker Fellowship program, the Main Street RI Streetscaped Improvement Fund, the Innovation Initiative, the Industry Cluster Grants, the High School College and Employer Partnerships, and the Air Service Development Fund, to 2023.  These programs will sunset June 30, 2020 without legislative action.  The budget includes at least $8.2 million for these initiatives (it is possible that a specific appropriation may have been missed while going through the list multiple times.)
The Governor added a new program to the economic development toolbox, called “The State and Local Partnership Council Act.”  The Act creates a new public corporation is charged wtiih providing support and assistance to municipalities in economic development activities and to promote site readiness.  The Corporation is given authority to “plan, construct, reconstruct, rehabilitate, alter, improve, maintain, operate…acquire or convey any parcels, tracts, areas or projects within participating municipalities.”  If a city or town chooses to participate, this new corporation can adopt regulations and create new laws for the municipality that are deemed necessary to generate economic activity.  Once the city or town votes to enter the program, the corporation takes over with full authority, and can even exempt parcels of land from the municipality’s zoning, land use ordinances, building codes and fire codes.  According to the House fiscal staff, this program requires $800,000 for staff and consultants (8 FTEs) and $1.45 million for site readiness.
Article 12 makes a change to the corporate income tax by allowing as a deduction, any deduction to income allowable under 26 U.S.C. 1400Z-2(c).  This special federal rule for investments held at least 10 years allows a taxpayer to elect to take, as a basis, the fair market value of the investment on the date the investment was sold or exchanged instead of the value at time of purchase. 
Lastly, there are a number of income tax credits for research and development up to $1.3 million for qualifying costs.
 
Article 13 – Relating to Minimum Wages
Article 13 increases the state minimum wage from $10.50 per hour to $11.10 per hour starting January 1, 2020.
 
Article 14 – Relating to Healthcare Market Stability
Article 14 allows “short-term limited duration” health care policies and any policy that pays on a cost-incurred basis, to be considered allowable health care coverage in Rhode Island.  Current law specifically bans the use of short-term limited duration policies.  What are these policies? The product was designed for people who experience a temporary gap in health coverage. Short-term policies are generally considered to be “major medical” coverage; however, short-term policies are distinguished from other comprehensive major medical policies because they only provide coverage for a limited term, typically less than 365 days.  Short-term policies are also characterized by other significant limitations, including the types of services covered, often with a dollar maximum. These products are not renewable.  They end when the contract is over.  Individuals can be turned down due to age, gender, health status or other factors.  Typical short-term policies do not cover maternity care, prescription drugs, mental health care, preventive care, and may limit coverage in other ways.  That said, these policies can be significantly less than traditional products; and therefore, it has been added as an alternative for those who may not otherwise purchase insurance.
The Article seeks to place the federal Affordable Care Act into state law, thereby ensuring the program’s continuance.  Every applicable individual must maintain minimum essential health care coverage after December 31, 2019, or that person will be assessed a penalty at the following personal income tax filing time.  The penalty is equal to a taxpayer’s federal shared responsibility payment that was in effect December 15, 2017.  The Article does recognize that the federal government could change its policy on the requirement for insurance and the corresponding penalty; so if the federal government institutes a penalty, then the Rhode Island penalty would not apply.
Lastly, the Article establishes a restricted receipt account called “The Health Insurance Market Integrity Fund.”  The purpose of the fund is to provide reinsurance to health insurance carriers and to support personnel costs, operating costs and capital expenditures for the health exchange and the division of taxation to carry out the state’s health insurance program.  If any money is left in the fund after meeting those requirements, the excess can be used for preventative health care programs for vulnerable populations.
 
The following bills were filed last week:
 
House Bill No. 5361  Edwards, Diaz, Kazarian, Maldonado, Alzate, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- UNLAWFUL EMPLOYMENT PRACTICES (Prohibits an employer, employment agency, labor organization, or employee, to commit any act declared to be an unlawful employment practice; individuals would be held personally liable for such conduct.)
 
House Bill No. 5364  Kazarian, Fogarty, Cassar, Bennett, Blazejewski, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Prohibits health insurance companies from changing premiums based on gender.)
 
House Bill No. 5388  Phillips, Solomon, Amore, Morin, Casey, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- MICRO ZONE ECONOMIC REVITALIZATION ACT (Creates micro zones in distressed areas to stimulate economic revitalization, employment opportunities, and business development through the redevelopment of obsolete, dilapidated and abandoned industrial and commercial structures.)
 
House Bill No. 5391  Fellela, Costantino, Ucci, Serpa, AN ACT RELATING TO MOTOR AND OTHER VEHICLES - INSPECTION OF MOTOR VEHICLES (Requires the first inspection of any new vehicle within five (5) years from the date of purchase. If the vehicle is sold within five (5) years, the new owner must obtain an inspection sticker before the current sticker expires.)
 
House Bill No. 5420  Diaz, Ackerman, Corvese, Slater, Craven, AN ACT RELATING TO INSURANCE -- MANDATORY COVERAGE FOR ALL BLOOD TESTING SERVICES (Mandates blood testing services coverage by accident/sickness/nonprofit hospital/nonprofit medical service corporation/HMOs effective 1/1/20.)
 
House Bill No. 5427  Casimiro, Alzate, Shanley, Tobon, Mendez, AN ACT RELATING TO FOOD AND DRUGS -- HEALTHY BEVERAGE ACT (Creates the "Healthy Beverage Act" which would require that children's meals offered by restaurants include certain healthy beverage options if the beverage is automatically included in the meal.)
 
House Bill No. 5441   McEntee, Craven, O'Brien, AN ACT RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY - SEASONAL EMPLOYEES (Creates a seasonal employment designation for purposes of unemployment benefits, which would allow employers hiring employees for less than twenty (20) weeks to apply for a seasonal determination by the director of the department of labor and training.)
 
House Bill No. 5444  Blazejewski, Carson, Solomon, Ucci, Handy, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND GLOBAL WARMING SOLUTIONS ACT (Establishes the Rhode Island global warming solutions act to reduce carbon emissions across various sectors of the local economy.)
 
House Bill No. 5454  Casey, Edwards, Blazejewski, Kennedy, Morin, AN ACT RELATING TO ALCOHOLIC BEVERAGES -- WINE DIRECT SHIPPER LICENSE (Creates a wine direct shipper license to allow for shipment of limited amounts of wine through the mail to eligible customers.)
 
House Bill No. 5455  (Dept. of Business Regulation)  Serodio, Amore, Noret, AN ACT RELATING TO ALCOHOLIC BEVERAGES - RETAIL LICENSES (Provides that Class F and F-1 liquor licenses may be issued to corporations, LLCs, and political organizations.)
 
House Bill No. 5478  Craven, Millea, McEntee, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY (Provides that an open and obvious danger or defect is not a complete bar to recovery of damages in personal injury or property damage actions.)

Senate Finance Committee to Hear Sales Tax
On Tuesday, February 12th at approximately 4:30 pm in the Senate Lounge, the Senate Finance Committee will take testimony on Article 5, Section 9 of the Governor’s budget.  This is the Article that expands the 7% sales tax to the following items:
    -  Digital  Downloads ($2.6 million) such as Audio Works like Netflix, on-demand movies, games, movie streaming; Digital Audio Works such as audio book downloads; Ringtones; Digital books
    -  Hunting, Trapping and Shooting Services ($.6 million)
    -  Lobbying Services ($.9 million)
    -  Interior Design Services ($.5 million)
    -  Commercial Buildings Services ($6.2 million) which specifically includes extermination services, commercial cleaning services, landscaping and maintenance services, carpet and upholstery clearing services and janitorial services.  These services, if performed in a private residence with a home office, are not taxable. 
 
House Labor Takes Up Paid Leave Option
On Wednesday, February 13th, at approximately 4:30 pm in Room 203, the House Labor Committee will accept testimony on H.5271, An Act Relating to …Rhode Island Parental and Family Medical Leave Act.  H.5271 allows an employee to substitute any accrued vacation, sick or other paid leave for any part of parental leave or family leave.
 
What’s in the Governor’s Budget – Article 9 Local Aid
Article 9 addresses local taxation of non-profit higher education institutions and non-profit hospitals, as well as vehicle excise taxes.
Section 1 of the Article allows cities and towns to tax the real estate of a higher education entity if that property is not exclusively used for educational purposes.  In addition, any personal property held within that real estate would also be taxable by the municipality.  Likewise, any property held by a non-profit hospital that is not used exclusively for hospital purposes would be taxable (and the personal property located within that real estate).  Vacant lots, improved or unimproved, would be taxable.  The proposal gives municipalities the authority to waive the taxes due and payable if the non-profit entity makes a payment in lieu of taxes.  In the event the municipality does not waive the tax due, then any current payment in lieu of taxes made would be credited against the taxes owed should this language pass into law.
Section 2 of the Article proposes changes to the vehicle excise tax phase-out.  In a nutshell, the Governor’s proposal is a follows (information presented by the House Fiscal Staff):
Fiscal Year
Current Law
Current Law
Current Law
Gov. Budget
Gov. Budget
Gov. Budget

 
% of Retail Value
Rate cap per $1000
Exempt Floor
% of Retail Value
Rate cap per $1000
Exempt Floor

2020
85
$35
$3000
87.5
$40
$2800

2021
80
$35
$4000
84
$35
$3800

2022
75
$30
$5000
79
$30
$4800

2023
70
$20
$6000
64.5
$25
$6000

2024
No Tax
No Tax
No Tax
No Tax
No Tax
No Tax

 
For example, this coming year, the current law calls for communities to reduce the percentage of retail value from 90% to 85%.  If your car is worth $10,000, then communities could tax you on $9000 last year and $8500 this coming year.  The Governor’s budget changes the 85% retail value to 87.5% thus allowing communities to tax you on $8750 in value for the $10,000 car.  Second, current law restricts communities, in FY2020, to taxing at a rate not higher that $35 per $1000 of vehicle value.  Last year the cap was $50 per $1000 of value.  The Governor proposes to allow communities to tax at a rate not higher than $40 in the coming year.  Finally current law states that if your vehicle, after the % of Retail Value is calculated, is worth less than $2000 then you pay no vehicle excise tax.  Current law calls for that “Exempt Floor” to go to $3000 in this coming year (2020).  The Governor proposes to decrease the Exempt floor to $2800, meaning more people will pay the tax in FY2020.  The Governor’s budget does call for the complete phase out to occur in 2024, just as the current law provides, but a larger portion of the fiscal impact comes in later years.
 
Article 10 – Universal Pre-kindergarten
Article 10 proposes to provide universal prekindergarten education to all 4 year-olds in the state.  “Universal access” will statutorily be considered achieved under this proposal when 70% of 4 year-olds are enrolled in high-quality programs.  However, the program does call for continuing expansion until “every family who wants a high quality, prekindergarten seat” for their child has one. 
The Department of Elementary and Secondary Education is charged with writing regulations for the program that takes into account: teacher education and certification, class size and staff ratios, learning time, learning standards, curriculum, support for students with special needs, support for dual English language learners, professional development, child assessments and observations to improve practice.  Local Education Agencies (LEA’s) are called upon to develop transition plans for students going from pre-k to kindergarten.  The strategies should consider student visits to their future kindergarten classroom, kindergarten teacher visits to the pre-k classroom, workshops for families of incoming kindergarten kids, and kindergarten orientation sessions the summer before school starts.
According to the House Fiscal Staff, the Governor’s proposal calls for $15.6 million in funding.  $14.5 million would go to fully fund the current 60 classrooms and expand the program; $.7 million would go to contracted professional development and program evaluation costs; and $.4 million would be used for four new full-time employee positions.
 
Article 11 – Rhode Island Promise (College Tuition Program)
One of the major areas highlighted in the Governor’s State of the State Address can be found in Article 11.  This is the Article that expands the free college tuition program to include Rhode Island College (RIC) as well as the Community College of Rhode Island (CCRI); and covers adult learners as well as high school graduates.
A two-year scholarship would be available for an Associate’s Degree at CCRI, a Bachelor’s Degree at RIC (or a combination of CCRI and RIC), and Certificate Programs meaning “any certificate program with labor market value as defined by the Postsecondary Commissioner.”  The Certificate Programs appear to be restricted to CCRI and RIC.
Adult learners are considered to be those 25 years of age or older and must be first-time enrollees in college.  Just like the original program, these individuals must maintain a 2.5 gpa, and they must stay on track to graduate.  Part-time students are given 4 years to complete an Associate’s Degree.
The Governor’s budget includes just under $8 million for the program.  The House budget staff noted that $5.3 million of the allotted funds comes from one-time reserve funds and that future years will be paid through general revenues under the Governor’s proposal.
 
The following bills were filed last week:
House Bill No. 5278  Abney, AN ACT RELATING TO TAXATION -- SALES AND USE TAX--NON-COLLECTING RETAILERS, REFERRERS, AND RETAIL SALE FACILITATORS ACT (Extends the requirement to collect sales tax to remote sellers in a way that conforms to a recent U.S. Supreme Court decision making it easier for states to compel collection/sales tax from retailers who do not have a physical presence in their state.)
 
House Bill No. 5287  (General Treasurer) Shekarchi, McKiernan, O'Brien, Slater, Diaz, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- NON-ERISA COVERED PENSION PLANS (Requires that all defined pension plans which are not covered by the ERISA and have at least two hundred (200) members, comply with ERISA's annual reporting provisions.)
 
House Bill No. 5290  Slater, AN ACT RELATING TO FOOD AND DRUGS -- THE EDWARD O. HAWKINS AND THOMAS C. SLATER MEDICAL MARIJUANA ACT (Prevents employers from refusing to hire or discriminating against individuals for marijuana use and positive test results.)
 
House Bill No. 5299  Hawkins, Lima, Phillips, Noret, Serodio, AN ACT RELATING TO HUMAN SERVICES - EQUAL RIGHTS OF BLIND AND DEAF PERSONS TO PUBLIC FACILITIES (Prohibits misrepresentation of the status of an animal as a service animal in order to acquire any right or privilege afforded disabled persons.)
 
House Bill No. 5301   Diaz, Bennett, McLaughlin, AN ACT RELATING TO HEALTH AND SAFETY - PUBLIC HEALTH AND WORKPLACE SAFETY ACT (Provides that any law or regulations which prohibits or protects a person from exposure to second-hand smoke would include second-hand marijuana smoke.)
 
House Bill No. 5314   Bennett, Handy, Ackerman, McNamara, Kislak, AN ACT RELATING TO FOOD AND DRUGS - SINGLE-USE PLASTIC STRAWS (Prohibits a food service establishment from providing a consumer with a single-use plastic straw unless requested by the consumer.)
 
House Bill No. 5319   Ucci, Lima, Fellela, Roberts, AN ACT RELATING TO TAXATION -- PUBLIC SERVICE CORPORATION TAX (Allows for accumulated depreciation reduction for physical deterioration, functional and economic obsolescence.)
 
House Bill No. 5326   Ucci, Kennedy, Lima, Costantino, Fellela, AN ACT RELATING TO ALCOHOLIC BEVERAGES - RETAIL LICENSES (Allows holders of a Class P license to purchase alcoholic beverages from either a retail or wholesale establishment in the state of Rhode Island.)
 
House Bill No. 5341  Shanley, Tanzi, Kazarian, Knight, Carson, AN ACT RELATING TO LABOR AND LABOR RELATIONS - FAIR EMPLOYMENT PRACTICES (Extends the timeframe within which to bring an action for an unlawful employment practice.)
 
House Bill No. 5343  Vella-Wilkinson, Tanzi, Walsh, Diaz, Alzate, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- SEXUAL HARASSMENT, EDUCATION AND TRAINING IN THE WORKPLACE (Mandates sexual harassment training for employees and supervisors of employers of fifty (50) or more employees. It would recommend an annual climate survey for employers.)
 
House Bill No. 5344  Tanzi, Kazarian, Cassar, Donovan, Ajello, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- UNLAWFUL EMPLOYMENT PRACTICES (Prohibits an employer/employment agency/labor organization/or employee/to directly/indirectly commit any act declared to be an unlawful employment practice/it being the legislative intent that individuals would be held personally liable for such conduct.)


House Bill No. 5345  Tanzi, Ruggiero, Shanley, Kazarian, Newberry, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Forbids an employer to require an employee to execute a nondisclosure agreement; or non-disparagement agreement regarding alleged violations of civil rights or criminal conduct as a condition of employment.)
 
Senate Bill No. 251  Conley, Seveney, Murray, Pearson, DiPalma, AN ACT RELATING TO TAXATION -- SALES AND USE TAX--NON-COLLECTING RETAILERS, REFERRERS, AND RETAIL SALE FACILITATORS ACT (Extends requirement to collect sales tax to remote sellers in a way that conforms to a recent U.S. Supreme Court decision making it easier for states to compel collection of the sales tax from retailers who do not have a physical presence in their state.)