​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.)
 
 
 
 
 
 
 
 
 
 
 
 

What’s in the Governor’s Budget – Article 4
Article 4 seeks to reorganize the state government by shifting responsibilities from one agency to another and adding new responsibilities to some.
 1.  Veterans’ Affairs (VA) – Article 4 proposes to give VA the job of presenting RI veterans’ claims to the veterans benefit administration without charge to the veteran.  The agency is also given control over any special funds to be used for installing markers, etc. on grave sites of military individuals.  The Article eliminates the mention of the General Assembly’s consideration to fund the annual encampment of the united Spanish war event.
2.  Motor Vehicles – The budget appears to eliminate the Motor Vehicle Inspection Commission which was housed within the Department of Revenue.  Records of vehicle inspections would be maintained by the Department of Revenue itself; and any hearings of complaints concerning inspections would be run by the Department of Revenue.
3.  Office of Management and Budget (OMB) – Article 4 proposes to take away the responsibility of maximizing federal grants to the State from the OMB and gives to the agency the responsibility for reviewing regulatory impacts.  OMB would be required to “analyze the impact of proposed regulations on the public and state as required by” the RI Regulatory Reform Act.  Currently regulation review is done by the Office of Regulatory Reform which is housed within OMB, so the change should be minimal; but the Chamber will monitor the debate on this change.  The federal grant responsibilities would go to the State Controller.  In the event a federal grant requires state matching funds, then the OMB would have to approve the filing of the grant application.
4.  Public Utilities Commission – The duties and powers of the Water Resources Board (currently housed within the Department of Administration) go to the PUC.  All property, employees and accounts are transferred to the PUC as well.  This Article would charge the PUC with drinking water protection, water infrastructure, water use efficiency, the sale of water to other states, etc.  However, the Article specifically states that the Department of Administration retains authority over the Big River Reservoir which is located in West Greenwich.  This is another governmental change the Chamber will be following closely.
5.  Office of Elderly Affairs – This agency moves from the Department of Human Services to the Executive Office of Health and Human Services, along with Veterans’ Affairs.  The Senate would no longer have advice and consent over the director of the office which would be simply a Gubernatorial appointment.
6.  Day Care Providers – Article 4 creates a new statute to address the licensing and monitoring of child day care providers.  The Department of Human Services would be responsible for overseeing the licensing process for day care centers, family day care homes, and group family day care homes.  The new section establishes nonrefundable application fees for the various licenses which all go to general revenue.
7.  Child Placement Monitoring – The Department of Children, Youth and Families would be given authority to establish a unit to license and monitor child care agencies, foster and adoptive homes, and children’s behavioral health programs
 
Article 5 – Tax Article
This Article was reviewed in the January 22nd Edition of Under the Dome
 
Article 6 – Debt Management Act
1.  URI – The Governor is requesting approval for financing $51.5 million in bonds for the renovation and expansion of the Memorial Union.  The total debt service is estimated to be $112.3 million assuming a 6% interest rate.  The debt service payments are to be supported by revenues from student fees and retail lease payments.
2.  URI – Article 6 requests approval for $2.1 million in bonds for improvements to URI’s Fraternity Circle including water, wastewater, electrical, telecommunications, natural gas connections, roadways, walkways and parking lots.  This represents the first phase of the project.  The total debt service is estimated at $3.7 million assuming a 6% interest rate.
3.  URI – The budget includes a request for $26.9 million in bonds for a Combined Health and Counseling Center for URI students.  The bonds would be financed through the Rhode Island Health and Educational Building Corporation over a term of 30 years.  Total debt service is estimated at $58.7 million assuming 6% interest rate.
4.  Department of Corrections High Security Center – The last section of Article 6 calls for $60 million for the Department of Corrections.  According to the Governor, the current capacity of the High Security Center (HSC) is 138 inmates.  Even with the current population of 86, the “per inmate” cost in the facility is $240,000 – a cost which is among the “highest in the nation.”  She states that due to the poor design of the facility, more staff is needed to supervise the number of inmates, resulting in a .85 inmate to 1 staff ratio.  The $60 million would be paid using $15 million from the Rhode Island Capital Plan Fund and $45 million through the issuance of Certificates of Participation.    A certificate of participation is a tax-exempt lease-financing agreement that is sold to investors as securities resembling bonds. In a COP program, a trustee is typically appointed to issue the securities that represent a percentage interest in the right to receive payments from the local government under the lease-purchase contract. Investors that participate in the program are given a certificate which entitles each investor to a share, or participation, in the revenue generated from the lease-purchase of the property or equipment to which the COP is tied.  The Governor proposes lease payments to be made over 15 years assuming a 5% average coupon rate for a total cost of $66.1 million.
Article 7 – Motor Vehicles
This short Article increases the technology surcharge added to every DMV transaction from $1.50 to $2.50 per transaction.  The original $1.50 would continue to go into the information technology investment fund, while the additional $1.00 would go to an account for DMV project-related payments and on-going maintenance of the computer system.  Starting July 1, 2022, the entire $2.50 would go to the on-going maintenance account.  The Article also eliminates the current requirement for Rhode Island drives to obtain a new license plate January 1, 2020.  Lastly, the Article eliminates the exemption for vehicles that are 20 years old or more.  Current law states that the older vehicles do not require a title certificate, making it easier to transfer these vehicles.  Article 7 seems to require all vehicles, regardless of age, to have a title certificate.
 
Article 8 – Relating to Transportation
1.  Size, Weight and Load Limits are addressed in this Article.  For vehicles between 80,000 lbs. and 130,000 lbs. a trip fee permit increases from $20 to $40.  For vehicles over 130,000 lbs. the fee increases to $300.  Current law allows for the purchase of an annual fee to avoid paying each trip fee.  Article 8 increases the annual fee from $300 to $400 for loads less than 130,000 lbs.  There is no annual fee option for loads over 130,000 lbs.
2.  While the gas tax does not increase under the budget proposal, the monies collected are disbursed differently.  The Rhode Island Public Transportation Authority (RIPTA) gets an additional half cent per gallon which is roughly $2 million.  Additionally, RIPTA has been receiving $5 million a year from 2017 to 2019 from the RI Highway Maintenance Account.  That transfer of money is to sunset June 30, 2019.  Article 8 includes one more year of the $5 million funding to RIPTA. 
 
The following bills were filed last week:
 
House Bill No. 5216   Solomon, Amore, Shekarchi, Casey, Morin, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - ESTABLISHING A SMALL BUSINESS DEVELOPMENT FUND (Establishes a small business develop fund designed to encourage the formation of private capital investment by federally licensed investment companies in underserved small business, leveraged by delayed, at-risk stream of tax credits.)
 
House Bill No. 5217  Morin, Marszalkowski, Solomon, Casey, Phillips, AN ACT RELATING TO ALCOHOLIC BEVERAGES - BREWERIES (Removes the limitations on the quantities of malt beverages that can be sold at retail by licensed breweries.)
 
House Bill No. 5218  Craven, McEntee, Edwards, Bennett, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Substitutes the office of health insurance commissioner for the director of business regulation as the overseer of health insurance claims and sets forth guidelines to use to determine whether substantial compliance has been met.)
 
House Bill No. 5225  Marshall, Abney, Shekarchi, Shanley, Costantino, AN ACT RELATING TO THE GENERAL ASSEMBLY - HOUSE OFFICE OF ECONOMICS (Establishes an office of economics to assist the house of representatives during its review of the financial impact of proposed legislation.)
 
House Bill No. 5260  Vella-Wilkinson, Morin, O'Brien, Almeida, Williams, AN ACT RELATING TO LABOR AND LABOR RELATIONS - ARBITRATION - CERTIFIED SCHOOL TEACHERS - MUNICIPAL EMPLOYEES (Makes the arbitrator's decision binding on all matters pertaining to certified public school teachers and municipal employees, including those matters involving the expenditure of money.)
 
House Bill No. 5268  Edwards, Maldonado, Canario, Slater, Amore, AN ACT RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES (Eliminates repealed statute references and create a mechanism for employees to enforce their existing right to continuation of medical benefits.)
 
House Bill No. 5269  Blazejewski, Shanley, Barros, Cassar, Ranglin-Vassell, 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.)
 
House Bill No. 5270  McKiernan, McEntee, Craven, Millea, Almeida, 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 the workers in the prior calendar year or six hundred thirty-six dollars ($636) per week.)
 
House Bill No. 5271  McEntee, Craven, Caldwell, McKiernan, Millea, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND PARENTAL AND FAMILY MEDICAL LEAVE ACT (Allows an employee granted unpaid family or parental leave to substitute any accrued vacation, sick or other appropriate paid leave for any part of the unpaid leave.)
 
Senate Resolution No. 194   DiPalma, Euer, Seveney, Felag, Murray, JOINT RESOLUTION CREATING A SPECIAL LEGISLATIVE COMMISSION TO STUDY AND EVALUATE RHODE ISLAND'S ELECTRIC AND NATURAL GAS TRANSMISSION AND DISTRIBUTION SYSTEM INFRASTRUCTURE (Creates a 22 member commission to study and evaluate Rhode Island's electric and natural gas transmission and distribution system infrastructure, and report back to the General Assembly by March 1, 2020, and expire on June 30, 2020.)
 
Senate Bill No. 195  Raptakis, Bell, Metts, Sheehan, Ciccone, AN ACT RELATING TO COMMERCIAL LAW-GENERAL REGULATORY PROVISIONS -- INTEREST AND USURY (Reduces the usury rate to twelve percent (12%).)
 
Senate Bill No. 202  McCaffrey, Sosnowski, Miller, DiPalma, Euer, 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.)
 
Senate Bill No. 204 Felag, Sosnowski, Seveney, DiPalma, Ciccone, AN ACT RELATING TO TAXATION - SALES TAX (Eliminates the sales tax on taxi services and pet care services.)
 
Senate Bill No. 220  Conley, Nesselbush, Crowley, Cano, AN ACT RELATING TO TAXATION -- PAWTUCKET OPPORTUNITY ZONE INCOME TAX CREDIT ACT (Tax credit for opportunity zone in investment in Pawtucket)
 
Senate Bill No. 234   Conley, DiPalma, Lawson, Satchell, Cano, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- CONSUMER PRIVACY PROTECTION (Creates "Consumer Privacy Protection Act.")
 
Senate Bill No. 241  Raptakis, Lombardo, Paolino, Lombardi, Morgan, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (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.)
 
 
 
 
 
 
 
 
 
 
 
 
 

An Update from the State House:   What’s in the Governor’s Budget – Article 2

​Article 2 deals with various state funds. 
1.  Creates a restricted receipt account for registration fees collected from real estate appraisers, called the CLRA Account.  The state can establish fees for applications, exams and late fees.  The Annual fee for a residential or general appraiser certificate is currently $200.  The account would be used to finance costs associated with real estate appraiser registrations.
2.  Creates a restricted receipt account for fees collected in association with the licensing of appraisal management companies.  Like the CLRA Account, the monies collected in the restricted receipt account are to be used for registration operations within the Department of Business Regulation.
3.  Creates a restricted receipt account called the “State Authorization Reciprocity Agreement” (SARA).  Rhode Island’s Council on Postsecondary Education is responsible for, among other things, entering into interstate reciprocity agreements regarding postsecondary distance education.  Many states have programs to oversee education facilities providing degrees through internet learning opportunities.  The monies collected through fees would go to fund our State’s oversight functions.
4.  Creates a restricted receipt account within the Department of Health.  All administrative fees or penalties levied by DoH would be deposited into the account, called the “health systems monitoring and compliance” account for use by DoH.
5.  Eliminates all marijuana licensing restricted receipt accounts, the “State Authorization Reciprocity Agreement” account, and the “De Coppett Estate Fund” from the 10% agency cost recovery allotment.  If a state agency has responsibility for overseeing a restricted receipt account, that agency receives 10% of the funds collected for the account, as an administration fee.  The state can deny the transfer of the administration fee, but it must be specifically stated in statute.
 
Article 3 – Relating to Government Reform
1.  Article 3 begins by addressing the Warwick Airport Parking District.  Currently an operator of a transient parking area pays a permit fee of $10 for each space available for parking up to a maximum of $250.  This Article eliminates the permit fee.
2.  Eliminates the $1 duplicate license fee for Class P liquor licenses for caterers.  The license fee will remain at $500, but no fee will be charged for duplicate licenses.
3.  Eliminates the requirement for cities and towns to have an “inspector of hides and leather.”
4. Makes numerous changes to the Contractor’s Registration and Licensing Board (CRLB).  First, any current decisions made by the Board can be contested to the Executive Director of the Board.  Article 3 transfers the hearing review responsibilities to the Department of Business Regulation.  The CRLB would not be required to hire an Executive Director, only “necessary staff.”  Today, each municipality must require contractors to sign a written affidavit, subject to penalties of perjury, that the contractor is properly licensed with the CRLB.  Article 3 eliminates the affidavit requirement but still requires the municipalities to require the contractor to be registered.  Lastly, the current law allows the CRLB Executive Director to suspend or revoke a license in the event he/she feels a health or safety issue is present thus creating an emergency.  The budget transfers that authority to the Department of Business Regulation.
5.  Eliminates the 10 hour OSHA safety course requirement for roofing contractors.  Roofing contractors would still be required to take 10 hours of continuing education – but over a 2-year period instead of each year.  The Article eliminates the need for a roofing contractor to be bonded in the aggregate amount of the total dollar value of any contract, but also increases the mandatory insurance certificate amount from $1.5 million to $2 million.
6.  Curiously, Article 3 transfers the responsibility to enforce the State’s false advertising laws from the Department of Business Regulation, to the Department of Labor and Training.  RIGL 11-18-10 states that no person or business can disseminate or circulate a message to the public, whether through print, audio, picture, video…, that includes any representation which is “untrue and designed to be deceptive or misleading…”  Anyone doing so can be fined $50 - $500 and/or imprisoned up to 90 days.  It is unclear if the Governor proposes to transfer employees to DLT to perform this new function.
7.  Eliminates the $10 fee for a motor carrier license, as well as the $10 fee for the decal that must be displayed in the window of a motor carrier vehicle.
8.  Transfers responsibility for overseeing gasoline pump price displays, mandatory safety signs, air pump notifications, brand displays and other required gasoline station signage from the Department of Business Regulation to the Department of Labor and Training.  The Article also eliminates the $5 fee station owners must pay to the state when they close down a station.
9.  Requires all state employees that have access to federal tax return information, to complete a fingerprint-based criminal background check initially, and then again every 10 years.  The state will pick up the cost for current employees; however, new hires will be required to pay the fee.  The same background check will be required for all vendors that have access to federal tax information.  An agency can accept a background check that was performed for another “suitable jurisdiction.”
10.  Requires persons seeking employment (or volunteering) at a family day care, group day care or child day care center to undergo a criminal background check.  This requirement also extends to foster families and adoptive homes.  If a child care activity is to take place in an individual’s home, any member of that household must also undergo the background check.
11.  Exempts from licensing mixed martial arts exhibitions that are for amateurs only and are under the control of an educational institution, religious or charitable organization.  The top prize for such an event cannot be more than $25.
12.  Transfers the Small Business Ombudsman office from the Office of Regulatory Reform to the Department of Business Regulation.
13.  Requires employers with an average withholding tax amount of $200 or more per month in the previous calendar year, to file and remit withholding tax payments by electronic funds transfers or another electronic means.  Failure to submit the tax electronically will result in an increased tax assessment equal to 5% of the tax owed – or $500 whichever is less – and an additional fee of $50.  This new system would be effective January 1, 2020.
 
The following bills were filed last week:
House Bill No. 5156  McNamara, Ackerman, Jackson, Solomon, Bennett, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Excludes pension income from taxation under the same circumstances as social security exclusion.)
 
House Bill No. 5159  Bennett, Edwards, Walsh, Ucci, Hawkins, AN ACT RELATING TO TAXATION (Provides a tax credit for community service hours provided by state residents to certain not for profit entities and municipal departments that are certified to issue credits for state community service volunteerism hours.)
 
House Bill No. 5163  Phillips, Solomon, Shekarchi, Ucci, Hawkins, AN ACT RELATING TO MOTOR AND OTHER VEHICLES - RHODE ISLAND UNIFORM COMMERCIAL DRIVER'S LICENSE ACT (Permits applicants for commercial driver’s licenses to carry over parts of the required examinations that they passed for a period of two years and require them to retake those portions not passed.)
 
House Bill No. 5175  Edwards, Canario, Almeida, Bennett, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- LABOR AND PAYMENT OF DEBTS (Amends the definition of public works so that it would include any public works projects performed for any city or town or quasi-municipal entity and the state and any quasi-state entity.)
 
House Resolution No. 5186  Tanzi, Shanley, McEntee, Craven, Vella-Wilkinson, HOUSE RESOLUTION REINSTATING AND EXTENDING THE COMMISSION LIFE AND AMENDING THE PURPOSE OF THE SPECIAL LEGISLATIVE COMMISSION TO STUDY UNLAWFUL SEXUAL HARASSMENT IN THE WORKPLACE (Reinstates the membership, extends the reporting and expiration dates, and amends the purpose of the commission to study unlawful sexual harassment in the workplace from May 29, 2018, to May 30, 2019, and expires on July 30, 2019.)
 
House Bill No. 5189   Morin, Ucci, Vella-Wilkinson, Marszalkowski, O'Brien, AN ACT RELATING TO TAXATION -- WITHHOLDING OF TAX (Provides that the non-resident withholding requirement for a corporation that sells real estate be consistent with the seven percent (7%) corporate income tax rate.)
 
House Bill No. 5194  Marshall, O'Brien, Morin, Vella-Wilkinson, Millea, AN ACT RELATING TO TAXATION -- HISTORIC PRESERVATION TAX CREDITS 2013 (Repeals the sunset provision of chapter 33.6 of title 44 which grants tax credits to individuals or companies redeveloping historic structures.)
 
House Bill No. 5207  Kennedy, Abney, Azzinaro, Johnston, Casey, AN ACT RELATING TO INSURANCE -- TRAVEL INSURANCE ACT (Creating the travel insurance act to establish comprehensive/uniform regulatory framework for travel insurance. Clarifying/bolstering enforcement authority over participants in the travel insurance industry.)
 
House Bill No. 5208   Phillips, Amore, Serodio, Morin, Casey, AN ACT RELATING TO HEALTH AND SAFETY (Encourages commercial property owners to install vehicle barriers at their retail establishment locations, and also permits insurers to consider the installation of such barriers to provide a discount on the owner's insurance policy.)
 
Senate Bill No. 37  Ruggerio, Goodwin, McCaffrey, Algiere, Conley, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO-LOTTERY GAMES, TABLE GAMES AND SPORTS WAGERING (Authorizes and provide for online sports wagering through authorized hosting facilities in Rhode Island.)
 
Senate Bill No. 40   DiPalma, Conley, Euer, Goldin, Paolino, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - INTERNET SERVICE PROVIDERS - NET NEUTRALITY (Requires Internet service providers to follow Internet service neutrality requirements.)
 
Senate Bill No. 48   Conley, Lombardi, Crowley, Felag, Pearson, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX CREDIT (Establishes personal income tax credit for persons incurring expenses caring for relative requiring assistance with daily living activities certified by a licensed physician for tax years from/after 12/31/19.)
 
Senate Bill No. 50  Picard, Murray, AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Provides that a nonprofit hospital facility converted from for-profit hospital facility would have a payment in lieu of tax agreement with the applicable city or town or subject to a municipal payment equal to sixty-five percent (65%) of the tax due.)
 
Senate Bill No. 55   Conley, Cano, DiPalma, Felag, Pearson, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - ESTABLISHING A SMALL BUSINESS DEVELOPMENT FUND (Establishes small business development fund to encourage formation of private capital investment in underserved small businesses with annual report and termination after 6 years.)
 
Senate Bill No. 57   Satchell, Conley, Metts, Picard, Cano, 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/business development through redevelopment of abandoned industrial/commercial structures.)
 
Senate Bill No. 61  Coyne, Seveney, DiPalma, Euer, Valverde, AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES (Authorizes cities/towns to establish a property tax credit program in exchange for volunteer service by persons over age 60 up to $1,500 calculated by multiplying service hours by the state minimum wage per hour.)
 
Senate Bill No. 71  Picard, AN ACT RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT (Prohibits residential landlords from terminating period tenancies from December 1 to February 1 and would require sixty (60) days written notice to the elderly or disabled.)
 
Senate Bill No. 90  Ciccone, Pearson, Quezada, Crowley, Felag, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- HEALTHY WORKPLACE (Creates the "Healthy Workplace Act of 2019" and would establish a cause of action against employers and employees for workplace bullying, harassment and other abusive conduct.)
 
Senate Bill No. 107  Algiere, Morgan, Paolino, de la Cruz, Rogers, AN ACT RELATING TO TAXATION - BUSINESS CORPORATION TAX (Reduces the minimum corporate tax from four hundred dollars ($400) to two hundred fifty dollars ($250) for the year beginning on July 1, 2019, and abolishes the minimum tax for tax years beginning on or after July 1, 2020.)
 
Senate Bill No. 109  Lynch Prata, Metts, Cano, Quezada, Pearson, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS - MINORITY BUSINESS ENTERPRISE (Provides that any minority business enterprise that is certified under the Federal Small Business Act shall be deemed certified by the department of administration as a minority business enterprise.)
 
Senate Bill No. 112  (General Treasurer) Cano, Gallo, Goodwin, Paolino, McCaffrey
ENTITLED, AN ACT RELATING TO EDUCATION -- FINANCIAL LITERACY (Mandates that a program of financial literacy be taught to all students in the public high schools throughout the state of Rhode Island.)
 
Senate Bill No. 122  Archambault, Felag, Conley, Cano, McCaffrey, AN ACT RELATING TO TAXATION - START-UP RHODE ISLAND TAX FREE ZONE PROGRAM (Establishes the "Start-Up Rhode Island Act," whereby selected businesses would not be required to pay state income, business, corporate taxes, local taxes or franchise fees for a period of up to ten (10) years.)
 
Senate Bill No. 134  DiPalma, Pearson, Felag, Seveney, Cano, AN ACT RELATING TO TAXATION - WITHHOLDING OF TAX (Provides that the non-resident withholding requirement for a corporation that sells real estate be consistent with the seven percent (7%) corporate income tax rate.)
 
Senate Bill No. 169  Quezada, Euer, Bell, Metts, Crowley, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WRONGFUL DISCHARGE FROM EMPLOYMENT (Ends Rhode Island's "employment-at-will" legal doctrine, provides job protection for employees that satisfactorily perform their duties provides specific remedies for wrongful discharge.)
 
Senate Bill No. 172  Goodwin, Goldin, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EQUAL PAY DATA COLLECTION AND REPORTING (Requires employers with 100 employees to yearly submit a form to the department of labor and training, which contains information regarding the compensation and hours worked of employees by age, gender, race, ethnicity, job category and occupation title.)
 
Senate Bill No. 174  Lynch Prata, Goodwin, Metts, McKenney, Conley, AN ACT RELATING TO LABOR AND LABOR RELATIONS - MINIMUM WAGES (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.
 
Senate Bill No. 175  Lawson, Ruggerio, Euer, Goodwin, McCaffrey, AN ACT RELATING TO LABOR - UNEMPLOYMENT BENEFITS DURING FEDERAL GOVERNMENT SHUTDOWN (Enables federal employees, who are working during a government shutdown but not receiving wages, to receive unemployment benefits while they are working but not getting paid.)
 
Senate Bill No. 179  Gallo, Sosnowski, Sheehan, Lombardo, Ciccone, 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.)

Governor Sets Her Agenda in State of the State Address
Last Tuesday, Governor Gina Raimondo gave her Annual State of the State Address and provided a small insight into her budget that was released later that week.  Highlighting her past four years as Governor, Raimondo pointed out that Rhode Island has “more jobs today than at any time in our state’s history.”  She said, “We won’t stop until every one of our Rhode Islander’s has a shot at a good job.  Later in her speech the Governor went on to say that three of four jobs lost during the last recession were ones where the employee only had to obtain a high school diploma.  Ninety-nine percent (99%) of all jobs created since the last recession require some credential past high school.  Governor Raimondo also stated that government must “make it easier and cheaper to do business in Rhode Island.”
In her speech, the Governor talked about items that are in her proposed new budget:
 
1.  $30 million in new investment in K-12 education for local communities. 
2.  A plan to begin a program for universal pre-K education
3.  An expansion in the Real Jobs training program
4.  Coverage for the last 2 years of tuition at CCRI with an expansion to RI College and the University of RI
5. Doubling of the small business loan fund
6.  Funding for mental health care needs in schools and training for teachers
 
In addition to the Budget, the Governor called on the General Assembly to increase the minimum wage to $11.10 to get on a path to an eventual minimum wage of $15; to codify Roe v. Wade; ban guns in schools and military guns in the state; and to pass Rhode Island’s own Affordable Care Act to ensure that the program stays in place in the event the federal government rescinds the program.
 
 
What’s in the Governor’s Budget – Article 5
Over the course of the next few weeks, Under the Dome will highlight the various budget Articles in H.5151 – the Governor’s budget proposal.  We are starting with Article 5 which addresses revenue sources.  This 70-page Article, which can be viewed at http://webserver.rilin.state.ri.us/BillText19/HouseText19/Article-005.pdf does the following:
1.  Increase the annual application fee for debt collectors from $100 to $500    
2.  Imposes the job development assessment on non-profit organizations with 1000+ employees.  This assessment is currently set at .21% of payroll and is paid by most businesses in conjunction with the unemployment insurance tax.  Today some non-profits are not subject to the unemployment insurance tax so they do not pay the job development assessment either.  This would be effective January 1, 2020.
3.  Creates a new fee on municipalities that submit names of delinquent car tax owners to the Department of Motor Vehicles.  Today municipalities are required to submit a list of names of those delinquent in paying the tax.  The Governor’s proposal would make the submission of the list an option, subject to a fee of $5 per taxpayer named on the list.
4.  Re-distributes the tax monies collected on the rental of residential units.  The percentages going to the local tourism entity, the local municipality and the RI Commerce Corporation changes depending upon the location of the rental unit, but 16.7% of the tax would go to the general fund.  Today none of the tax collected goes to the general fund.
5.  Increases the interest rate on delinquent debt owed to the state from prime +2% (currently 8.25%) to 13% or an interest rate established by a state agency, whichever is higher.
6.  An expansion of the 7% sales tax to the following items:
    -  Digital Audio Works such as Netflix, on-demand movies, games, movie streaming, etc.
    -  Digital Audio Works such as audio book downloads
    -  Ringtones
    -  Digital books
    -  It is unclear if downloaded apps would be included
    -  Association or club dues associated with any service that is assessed a sales tax.  (The     Chamber has requested additional information on this definition to further clarify what is included.  We will provide an update when the information becomes available.)
    -  Hunting, Trapping and Shooting Services
    -  Lobbying Services
    -  Interior Design Services
    -  Commercial Buildings Services 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
 
7.  Increases the hotel tax from 5% to 6% with the additional revenue going to the general revenue fund
 
8.  Creates new fees and taxes on E-liquid nicotine products.  A distributor’s license for an entity that does not affix stamps would increase from $100 to $250.  A dealer’s license application fee increases from $25 to $75 and the subsequent license will cost $250.  Effective September 1, 2019, E-liquid products would be taxes at 40% of wholesale cost.
 
9.  Increases the cigarette tax from $4.25 per pack to $4.50 per pack starting August 1, 2019.  The cigarette dealer’s license renewal increases from $25 to $250.
 
10.  Increases the tax on beverage case containers sold by a beverage wholesaler from $.04 per case to $.08 per case
 
11.  Increases the tax on lubricating oil from $.05 per quart to $.10 per quart.  Increase the tax on antifreeze from $.10 per gallon to $.20 per gallon.  The tax on organic solvents increases from $.0025 per gallon to $.005 per gallon.  The tax on tires increases from $.50 per tire to $1.00 per tire.
 
12.  Increases the “hard to dispose material” fee for titling a new vehicles from $3.00 to $6.00.
 
13.  Creates a new tax on firearms of 10% for any item more than $1.09.  Exempt from the tax are the government, military, veteran organization purchasing items for ceremonial events, law enforcement and blank ammunition.
 
14.  Increases the Oil Spill Prevention Administration and Response fee placed on every barrel of petroleum that comes into the state.  The fee which currently raises about $2 million, would double.  The OSPAR Fund, created to provide a clean-up fund in the event of a marine oil spill, would be expanded to pay for storm water management and brownfields remediation.
 
 
The following bills were filed last week:
 
House Bill No. 5129  Solomon, Casey, Johnston, Millea, Vella-Wilkinson, AN ACT RELATING TO PROPERTY CONDOMINIUM LAW - RESALE OF UNITS (Imposes a penalty against a condominium association that fails to deliver a resale certificate within ten (10) days of a request by a unit owner.)
 
House Bill No. 5133  McNamara, Ackerman, Newberry, Lyle, Jackson, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - RESIDENTIAL SOLAR ENERGY - DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS ACT (Grants solar energy system retail purchasers protections requiring disclosures in the retail/lease documents the right to cancel/rescind agreement within 90 days prior to installation/notice of liens filed on their property.)
 
House Bill No. 5137  Williams, Shekarchi, Vella-Wilkinson, Barros, AN ACT RELATING TO PROPERTY -- FAIR HOUSING PRACTICES (Prohibits discrimination in housing against those persons who have a lawful source of income.)
 
House Bill No. 5142  Bennett, Edwards, McNamara, McEntee, Jacquard, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- PHYSICAL THERAPISTS (Includes in the practice of physical therapy ordering diagnostic images and studies provided they are performed and interpreted by other licensed health care professionals.)
 
House Bill No. 5145  Ruggiero, Shekarchi, Marszalkowski, Blazejewski, Craven, AN ACT RELATING TO BUSINESSES AND PROFESSIONS (Enables Rhode Island businesses to voluntarily promulgate standards to guide its business activities in a sustainable and responsible manner, as well as metrics for assessing whether it has met its objectives.)
 
ouse Bill No. 5146  Bennett, Edwards, McNamara, McEntee, Jacquard, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Requires health insurance coverage for annual pediatric mental health examinations when ordered by a physician.)
 
House Bill No. 5151  (Governor)  Abney, AN ACT RELATING TO MAKING APPROPRIATIONS IN SUPPORT OF FY 2020.  This is the Governor’s Budget Proposal.
 
Senate Bill No. 16  Miller, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - ENERGY FACILITY SITING ACT (Provides that applicants/licensees for fossil fuel electricity generating facilities invest in renewable energy facilities in conjunction with the fossil fuel facility construction.)
 
Senate Bill No. 17  DiPalma, Seveney, Conley, Miller, Goldin, AN ACT RELATING TO TAXATION - JOBS DEVELOPMENT ACT (Sunsets/discontinues the Jobs Development Act rate reduction as of July 1, 2019.)
 
Senate Bill No. 20  Miller, AN ACT RELATING TO TAXATION -- LITTLE CIGAR TAX (Requires little cigars tax be imposed in the same manner as cigarette tax with twenty-five percent (25%) of revenue applied to smoking cessation programs and that little cigars be sold in packs of twenty (20) or more.)
 
Senate Bill No. 21  Satchell, Seveney, Miller, Conley, Quezada, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Adds three (3) new income tax brackets for purposes of Rhode Island state income taxation.)
 
Senate Bill No. 22  Satchell, Euer, Conley, Bell, AN ACT RELATING TO TAXATION -- HISTORIC PRESERVATION TAX CREDITS 2013 (Provides that applicants for historic tax credits shall have ninety (90) days after the date of the commission's written determination certifying the rehabilitation to pay the required three percent (3%) non-refundable fee to the division of taxation.)
 
Senate Bill No. 24  Miller, Satchell, Conley, DiPalma, Sosnowski, AN ACT RELATING TO HUMAN SERVICES -- RHODE ISLAND PATHWAYS PROJECT (Requires the executive office of health and human services (EOHHS) to conduct a study to assess the impact of using Medicaid funds to provide coverage for the treatment of the chronically homeless.)
 
Senate Bill No. 27  Lombardi, McCaffrey, Felag, Ciccone, Lombardo, AN ACT RELATING TO FOOD AND DRUGS - FOOD DONATIONS (Repeals the current chapter of the general laws regarding immunity for food donors to food banks, and would adopt a new chapter with comprehensive immunity provisions for persons involved in donating food to food banks.)
 
Senate Bill No. 30  Lombardi, Ciccone, McCaffrey, AN ACT RELATING TO PROPERTY - RESIDENTIAL LANDLORD AND TENANT ACT (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. Failure to provide proof of insurance would preclude a landlord from proceeding on an eviction action.)
 
 
 
 
 

House Committee Passes Rules
The House Committee on Rules passed proposed rules for the 2019-20 legislative years.  Historically, few people outside the state house paid much attention to the rules, but this year was different.  Over two hours of testimony was presented at a hearing.  The bill that will go before the House floor this week contains two significant changes:  1. A required 24- hour public posting of committee substitute bills prior to committee votes; and 2. The creation of a Committee on Conduct. 
The 24 hour posting requirement will not apply to the budget, which makes sense.  The budget is different from every other bill in that is must sit on the House floor for 7 days prior to a full house vote - giving plenty of time for legislators and the public to review the Substitute bill passed by the House Finance Committee. The proposed rule also states that a Chair of a Committee may waive the 24 hour posting requirement if the change in the bill is technical, grammatical or not substantive in nature.   
The Committee on Conduct would be responsible for investigating any claims of sexual harassment that takes place during the business of the House. 
Committee memberships can be assigned once the rules are passed by the House.
 
Governor’s Task Force on Plastics
Governor Raimondo established a Task Force to Study the reduction of the use of plastics.  Four subcommittees were established, including one on legislative activity.  Three meetings have taken places with members of both the environmental community and the business community.  At the last meeting, it appeared that a recommendation might come forward that would ban the use of plastic bags and allow businesses to charge a fee to customers that wish to use a paper bag.  The discussion included the idea of allowing a business to keep the fee collected in order to defray some of the increased cost of using paper over plastic bags.  The business community strongly advocated for preemption language to ensure that the rules are consistent across the state.  It is as yet unclear what a final bill will look like and whether a consensus will be reached between the members of the subcommittee.  A final meeting will be held January 22.
Another subcommittee of the Task Force is asking businesses and organizations for examples of programs or policies used to minimize or eliminate the use of single use plastics.  A survey has been developed and can be found at http://bit.ly/DEMplastics-survey  . As the subcommittee stated, “We have heard anecdotally and through first hand stories that many RI businesses have taken action on their own on this issue.  We’d like to collect and share these stories, looking for ways to provide guidance and examples to others as part of our work group effort.”
 
Governor’s State of the State Address
Governor Gina Raimondo will be delivering her State of the State Address 7:00 p.m Tuesday, January 15th.
 
The following bills were filed last week:
House Bill No. 5045  McNamara, Millea, Ackerman, Jackson, Nardone, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - E-911 UNIFORM EMERGENCY TELEPHONE SYSTEM DIVISION (Mandates that the E-911 uniform emergency telephone system division develop and commence operation of a text-to-911 emergency system on January 1, 2020.)
 
House Bill No. 5048  Solomon, Jackson, McNamara, O'Brien, Vella-Wilkinson, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Creates a sales tax holiday for the days of August 10, 2019 and August 11, 2019.)
 
House Resolution No. 5049  Carson, JOINT RESOLUTION MAKING AN APPROPRIATION OF $12,000 TO THE RHODE ISLAND DEPARTMENT OF TRANSPORTATION (This resolution would authorize the appropriation of the sum of $12,000 to the Department of Transportation for a flower bulb planting machine.)
 
House Bill No. 5080  Lombardi, Hull, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR VEHICLES REPARATION ACT (Penalizes driving any motor vehicle that is required to be registered in this or any other state without insurance and without proof of insurance.)
 
House Bill No. 5093  Lombardi, Hull, Quattrocchi, Nardone, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - REGULATORY POWERS OF ADMINISTRATION (Provides that any rate increase with respect to electric distribution companies would be no greater than the increase in the Consumer Price Index or five and one-half percent (5.5%), whichever is greater.)
 
House Bill No. 5097  Bennett, Lima, Williams, Blazejewski, Barros, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Raises the existing minimum wage of ten dollars and fifty cents ($10.50) to eleven dollars and fifty cents ($11.50) on January 1, 2020, and then increase to twelve dollars and fifty cents ($12.50) on January 1, 2021.)
 
House Bill No. 5098  McNamara, Corvese, Jackson, McLaughlin, Fellela, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Exempts self-employed sole practicing investigators operating independently from any partnership, corporation, limited liability company or association from the sale tax imposed on services.)
 
House Bill No. 5099  Phillips, Solomon, Morin, McNamara, Johnston, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- ENFORCEMENT AND COLLECTION (Eliminates the ten dollar ($10.00) fee requirement for the sales tax permit.)
 
House Bill No. 5116  Ackerman, Shekarchi, Edwards, McNamara, Blazejewski, AN ACT RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - DECEPTIVE TRADE PRACTICES (Requires retail establishments to accept cash in payment for goods and services.)

​The 2018 legislative session has come to an end.  The Chamber actively monitored 233 bills this year.  Of those, the chamber supported the passage of 51 bills; opposed 168 bills; and actively monitored 14 bills to ensure they were not amended during the session.  Thank you for your continued interest in Under the Dome.   Mark your calendars – Wednesday, September 12th is Primary Day! (the primary will be held on a Wednesday due to a religious holiday)
 
Bills Supported:
 
Of the 51 bills supported by the Chamber, 10 passed into law. 
 
            H.7290 SubA – Pawsox establishes the framework to allow the City of Pawtucket and the State of Rhode Island to enter into an agreement to build a new Pawtucket Redsox stadium.  The team leadership is reviewing the proposal to determine if they wish to move forward.
 
            H.7080 SubA and S.2145 SubA.  On July 1, 2019, city and town clerks or recorders of deeds will have the option to accept electronic documents for recording real property land records.  This will save both municipalities and the parties to a real estate transaction time and money.
 
            H.7251 SubA and S.2763 SubA.  These bills allow an individual who is applying for a commercial driver’s license (CDL), or renewing a CDL, to submit the medical examiner’s certificate to the Department of Motor Vehicles by electronic transmission.  The new law requires the DMV to add a menu item to its website to allow for the electronic submission of the required medical document.
 
            S.2934 SubA.  This new law establishes a reinsurance program that provides reinsurance to health insurance carriers offering coverage on the individual market.  The intent of the reinsurance program is to mitigate the impact of high-risk, high-cost individuals on the cost of health insurance premiums in the state by covering the costs of those individuals beyond a specific threshold.  The program is to be funded through federal dollars.  Without federal funding the program will not be implemented.
 
            H.7104. H. 7140 helps to address the problems caused by road and bridge construction by requiring DOT to identify the impact of such projects on small businesses and to share that information with Commerce with at least two months’ notice.  Commerce is then required to assist businesses affected by road and bridge construction by sharing information with the small businesses in the affected communities, informing them of the resources and programs available to them to minimize the economic and financial impact of the construction, and meeting with affected businesses as necessary.
 
            H.7121. This new law requires the director of administration and the commissioner of health insurance to seek a waiver under Section 1332 of the Patient Protection and Affordable Care Act for the purpose of allowing self-employed and sole proprietors to purchase insurance in the small group market. This is an enabling legislation which would allow business owners to decide the best financial route to providing healthcare for their employees.
 
            H.7385 SubA.  The passage of this law extends the sunset requiring mediation conferences prior to mortgage foreclosures to 2023.  The current law was scheduled to sunset July 1, 2018.  The law also reduces the fees paid by mortgage holders to RI Housing from $500 per “engagement” to $100 per “mediation engagement.”  RI Housing was collecting fees even if the mortgagor chose not to participate in any mediation activity. 
 
            H.7807. H.7807 requires the Office of Energy Resource to study the electric and natural gas efficiency programs to determine if the measures are achieving energy savings and to make recommendations for changes if appropriate. 
 
 
Bills Monitored:
 
Of the 14 bills monitored by the Chamber, 1 passed into law.
 
            H.8122aa.   http://webserver.rilin.state.ri.us/BillText/BillText18/HouseText18/H8122.pdf  eliminates red tape requirements on various business entities such as, common carriers, mobile homes, manufacture wholesalers, barbers, hairdressers, manicurists, optometrists, physical therapists, occupational therapists, mental health counselors, marriage therapists and massage therapists. 
 
 
Bills Opposed.
 
Of the 168 bills opposed by the Chamber, 8 passed into law.  All but one of the bills that passed added mandates to the state’s health insurance coverage plans.
 
            H.7625 SubA and S.2529 SubA.  The Contraceptive coverage bill was changed dramatically prior to passage.  The bill now states that the Executive Office of Health and Human Services must apply for federal approval to provide 365 days of coverage from contraceptive from a single prescription written for a patient.  Additionally, after April 1, 2019, if an insurance plan covers contraceptives, then it must cover 365 days for contraceptives.
 
            H.7002 SubA and S.2224 SubA.  These bills, now law, require health insurers to cover the entire cost of mastectomies as well as reconstruction following the procedure.  The insurance must cover costs of treatments covered by physician assistants and advanced practice registered nurses (prior law covered only attending physicians).  Co-pays can no longer be charged by insurers nor can the costs fall under the individual’s deductible. 
 
            H.7800 SubA and S.2597 SubA.  This “Payment of Wages” bill was amended prior to passage.  The original language required employers to provide all documents and payments in paper form unless the employee opted out.  The law now reads:  “All statements and records required to be furnished to an employee by this section may be furnished as an electronic record. The employer shall furnish to an employee a printed or handwritten record, in lieu of an electronic record, at no cost to the employee, when a written authorization from such employee is provided to the employer.”
 
            H.7806 SubA.  All health insurance plans renewed after January 1, 2019, must include behavioral health counseling visits and medication maintenance visits as primary care visits for patient cost-sharing requirements.
 
            H.7855. This new law applies to all state and municipal construction contracts $250,000 or more.  These projects will now require a 5% retainage provision which can be utilized if the contractor and subcontractors dispute costs or quality of work.  Massachusetts’ retainage law goes into effect once the project reaches a cost of $3 million.

​Last Friday night, shortly before midnight, the House Finance Committee passed its version of the FY2019 budget.  The budget is considered a work in progress as a few Articles passed with the acknowledgement that an updated version will be hammered out prior to the budget vote by House floor on Friday.  The House is scheduled to go into session Friday, June 15th at 2:00 p.m. to debate and vote on the budget.  The following is a description of a number of items found in the Finance Committee passed budget:
 
Fees assessed on the offering of federal covered securities in Rhode Island could be increased under the Finance Committee budget.  The Governor had proposed increasing the maximum charge for the initial offering from $1000 to $1500.  The Finance Committee budget raises the maximum to $1750.  The Governor also proposed increasing the fee charged to open end management companies that file a “notice for an indefinite amount of securities” (and for a subsequent renewal) from $1000 to $1500.  The Finance Committee budget increased the fee to $1750.
 
The Finance Committee chose to keep the Governor’s proposed $100 fee increase on insurance claim adjusters (new fee will be $250)
 
Food service establishments will no longer have to obtain a frozen dessert license in addition to the license required to operate as a food service establishment.  An entity that is not a food service establishment but has frozen dessert machines will have to obtain the license.  Additionally, food safety certifications will last 5 years instead of 3 years. 
 
The E 911 fund was renamed the “Geographic Information System (GIS) and Technology Fund to describe more transparently the purpose of the fund.  The fee associated with the fee did not change.
 
The Finance Committee eliminated the 25 cent increase in the cigarette tax (the current tax is $4.25 per pack) as well as the tax on vapor products, cigars and smokeless tobacco. 
 
The Governor’s Real Jobs program did get funded, but the amount of interest to be taken from the Unemployment Insurance (UI) Fund will be less.  The Governor included a diversion 100% of the UI interest earned on the fund to the Real Jobs program.  The House did not favor the taking of the funds leaving this issue as one of the last issues to reach resolution during the budget negotiations.  The Finance Committee lowered the diversion to 75% ($5.5 million) in efforts to ensure that the UI Fund continues to grow.  The Committee stated that this is a one-time authorization of the diversion of the interest. 
 
The Budget proposal sunsets the Jobs Training Tax Credits Act January 1, 2018.
 
The Rhode Island State Work Immersion Program – a “temporary, paid, work experience that provides a meaningful learning opportunity and increases the employability of the participant” - has been expanded to allow any Rhode Island resident to participate.  Under current law, only post-secondary school students, recent college graduates and unemployed adults could participate in the program.  Employers currently are eligible to receive a credit for up to 50% of the wages paid to a person for up to 400 hours of work during a 10 week period.  The Finance Committee budget increases the credit to 75% of the wages paid during the participant’s work experience.
 
Finally, the Finance Committee budget places a June 30th, 2020 sunset on a number of economic development programs:  Rebuild RI Tax Credit; RI Tax Increment Financing; Tax Stabilization Incentive; First Wave Closing Fund; I-195 Redevelopment Project Fund; Small Business Assistance Program; Stay Invested in RI Wavemaker Fellowship; Main Street RI Streetscape Improvement Fund; Innovation Initiative; Industry Cluster Grants; High School, College, and Employer Partnerships; and the RI New Qualified Jobs Incentive Act of 2015.
 
This Week At the State House
 
Many committees are meeting to consider bills such as immunity to entities or persons that donate food to a food bank, and the adoption of the federal electrical code.
 
One bill of note will be considered by the Senate Labor Committee on Wednesday.  S.2471 (Senators Ciccone, Calkin, Goldin, Euer and Nesselbush) establishes a cause of action against employers and employees for workplace bullying, harassment and other abusive conduct.  "Abusive conduct” is defined as “acts, omissions, or both, that a reasonable person would find abusive based on the severity, nature, and frequency of the conduct.”  An employer is vicariously liable for the actions of its employees, unless the employer can show it exercised reasonable care to prevent and promptly correct any actionable behaviors AND the employee failed to take appropriate preventative or corrective opportunities provided by the employer. 
 
 
The following bills were filed last week:
 
House Bill No. 8288
BY  Regunberg, Tanzi, Vella-Wilkinson, Casimiro, Donovan
ENTITLED, AN ACT RELATING TO TAXATION - APPLICATION FOR TAX CREDITS, STATE FUNDS OR STATE CONTRACTS (Mandates applicants for state contracts in excess of $50K disclose discrimination complaints for prior 5 years.)
 
House Bill No. 8303
BY  Marszalkowski, Carson, Donovan, Casimiro, Handy
ENTITLED, AN ACT RELATING TO FOOD AND DRUGS - FOOD DONATIONS (Provides immunity to persons donating food to food banks.)
 

​The upcoming week at the State House will be a week of votes, as both the House and Senate begin to pass duplicate bills.  Barring some breakdown in communication, this signals the opportunity for an early to mid-June passage of a budget. 
 
What is a “duplicate bill”?  It is common for bills to be introduced in both branches of the legislature.  For example, this week S.2763SubA (Sen. Picard) is scheduled for a vote in the House Corporations Committee Wednesday.  This bill allows those with a CDL license to submit the required medical certificate to the DMV by electronic means thus saving time and money.  This bill passed the Senate Special Legislation Committee in April; passed the Senate floor and has been waiting for action by the House Corporations Committee.  The same bill, H.7251SubA (Reps Phillips, Solomon, Casey, Morin and Corvese) was passed by the House Corporations Committee in April, followed by passage on the House floor and is now awaiting consideration in the Senate Special Legislation Committee.  H.7251SubA is scheduled for a vote Wednesday.
 
This Week At the State House
 
Tuesday will feature a Budget Status update in the House Finance Committee at the Rise.  
The Senate Judiciary Committee will meet at 3:00 pm to vote on S.2423 (Senators Metts, Quezada, Jabour, Goldin, and Goodwin) a bill that would double the administrative penalty levied against real estate brokers and salespersons for crimes such as misappropriation of escrow funds, from $1000 to $2000. 
 
Thursday, the Senate Finance Committee will take testimony on a number bills at the Rise.  S.2066 (Senators DiPalma, Pearson, Conley, Lynch Prata, Felag) lowers the non-resident seller withholding requirement from 9% to 7%.  When a company is sold, if real estate is involved, and the seller is not a resident of Rhode Island, the closing attorney (or the buyer) must withhold 9% of the net proceeds of the sale until the seller can show proof of payment of Rhode Island income tax owed at the end of the year.  If that person/corporate entity fails to pay taxes owed, the state can claim the amount owed from the funds that are being held.  The legislature lowered the corporate tax rate in 2015 from 9% to 7%, but no one thought to amend the real estate non-resident withholding percentage as well.  This bill corrects that error and allows seller to retain more of the net sale proceeds. 
 
Other bills to be heard in the Senate Finance Committee include:  S.2072 (Senators Satchell, Archambault, Calkin, Euer and Miller) which establishes a nineteen percent (19%) “carried interest fairness fee” for investment management services in order to tax the carried interest income of hedge fund and private equity investors as traditional ordinary earned income;  S.2219 (Senators Pearson, Gallo, Satchell, DiPalma and Seveney) states that payments by an employer, whether paid to an employee or lender, of principal and interest on a qualified education loan incurred by an employee would be subtracted from the calculation of federal adjusted gross income; and S.2389 (Senators Satchell, Conley, Calkin, Goldin and Euer) adds three new tax brackets to the RI personal income tax 7.99% for taxable income of $275k to $500k, 8.49% for taxable income of $500k to $1 million and 8.99% for taxable income over $1 million.
 
 
Interesting News from a Federal District Court – Wage Equity
 
The United States District Court for the Eastern District of Pennsylvania released an April 30th  decision in the case of The Chamber of Commerce for Greater Philadelphia v. City of Philadelphia
 
https://images.law.com/contrib/content/uploads/documents/402/18130/17-1548-FINAL-Opinion-on-MPI.pdf
 
The Court laid out the basic facts by stating the following: “Responding to the problem of wage inequality for women and minorities, the City of Philadelphia has enacted an ordinance amending Title 9 of The Philadelphia Code to include provisions on wage equity.  The ordinance has two parts.  First, it prohibits an employer from inquiring about a prospective employee’s wage history (“the Inquiry Provision”); and second, it makes it illegal for an employer to rely on wage history “at any stage in the employment process” to determine a salary for an employee (“the Reliance Provision”).
 
The Philadelphia Chamber (and certain businesses by name) challenged both provisions on the grounds that the sections violate the First Amendment of the Constitution.  The decision itself makes for interesting reading.  In the end, the Court concluded that “the Inquiry Provision violates the First Amendment’s free speech clause.”  The Court did uphold “the Reliance Provision” stating that a business could not ask for wage and salary history and then use that information to set the individual’s wage.
 
For those “legal junkies,” the Court determined that the protections afforded to wage and salary history inquiries fall under commercial related expression and is worthy of “intermediate scrutiny.”
 
The Court Case will likely be discussed as Rhode Island continues to consider pay equity legislation.  It is also unclear whether the City of Philadelphia will appeal the decision.
 
Political Update
 
As stated previously in UTD, anyone wishing to run for office must file a Declaration of Candidacy Form with the Local Board of Canvassers in the City or Town in which you reside.  Forms can be filed June 24th, 25th or 26th.   Rep. Jared Nunes – a good friend to the business community – has decided not to run for re-election in the district representing Coventry and West Warwick.
 
 
The following bills were filed last week:
 
Senate Bill No. 2895
BY  Miller
ENTITLED, AN ACT RELATING TO FOOD AND DRUGS -- ADULT USE OF CANNABIS ACT (Establishes a system for the regulation and taxation for adult use and cultivation of marijuana.)
 
Senate Bill No. 2905
BY  Fogarty, Miller, Goldin, Euer, Calkin
ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - ENERGY FACILITY SITING ACT (Makes changes to the membership of the energy facilities siting board by increasing the size of the board from three (3) to seven (7) members for certain application, and also imposes additional requirements on applicants for energy facilities.)
 
Senate Bill No. 2924
BY  Fogarty
ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION (Allows waiver of prior claimed common law rights by corp./LLC officers/Enlarges advisory council from 16 to 17 members/Imposes certain limitations on payments to injured employees/Authorizes uninsured protection fund to promulgate rules and regulations.)