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.)

​The Department of Labor and Training has released the final Paid Sick and Safety Leave (PSSL) regulations.  The trigger point for employers to be included under the law is still based on the number of employees the business had within the 2 highest reporting quarter in the previous year.  So if you maintained an average of 18 employees in the 2 highest employment quarters last year, you are required to provide PSSL benefits beginning July 1, 2018.  New employers (companies started after January 1 of the current year) are required to provide PSSL as soon as the 18th person is hired.
 
Starting July 1, 2018, covered employees are entitled to 24 hours of PSSL during the 2018 calendar year.  This wording suggests that if your company already provides paid leave and the employee has utilized a certain number of the hours prior to July 1st those hours would be included in the overall 24 hour count for 2018.  Covered employees are entitle to 32 hours PSSL during calendar year 2019; and 40 hours during calendar year 2020 and thereafter.
 
An employee is covered if he/she spends more time working in Rhode Island than in any other state.  Fifty percent (50%) is not a requirement for inclusion.  If an employee works in three states but splits it up so that he/she works in Rhode Island more any other states – that employee is covered and is entitled to PSSL.
 
If an employee knows PSSL will be needed 24 hours in advance of the leave time, the leave is considered “foreseeable” and that employee must provide reasonable notice to the employer.  If the employee discovers leave is needed less than 24 hours in advance, it is considered “unforeseeable” notice is required ONLY IF the employer has an adopted written policy that was provided to the employee prior to the leave request.  Otherwise, notice is not required.
 
Employers are permitted to require documentation of PSSL lasting more than 3 consecutive workdays.  HOWEVER, the employer must have a policy in place; and if the costs associated with obtaining that documentation (doctor visit, transportation cost, etc.) exceeds two times (2x) the employee’s hourly rate of pay, then the cost is considered unreasonable.  If the cost is unreasonable, then the employer cannot require the employee to provide the documentation, but can ask the employee to sign a paper stating that the leave was taken in accordance with the law.
 
These are just a few of the items found in the final adopted regulation.  The final regulation can be viewed at:  http://sos.ri.gov/documents/archives/regdocs/released/pdf/DLT/9466.pdf
 
If your business has 18 employees or more as outlined above, the Chamber strongly suggests you contact an employment attorney or human resource specialist ASAP and be sure that your policy manual is in compliance with this new law.  The new policy must be in the hands of your employees by July 1, 2018 or the notice provisions and other parts of the law will be unavailable to you as an employer.
 
 
Final 2018 Revenue Estimated Conference Looks Brighter
 
As a few people sat in the audience, 3 members of the Governor’s Revenue Department, 3 members of the House fiscal staff and 3 members of the Senate fiscal staff sat in a room for 5 ½ hours debating the appropriate number for each revenue line item in the current FY2018 budget and next year’s FY 2019 budget which starts July 1.  For the FY2019 budget, the group believes personal income tax collections will be about $24 million more next year for a total of $1.3 billion.  Lottery revenue will remain somewhat steady ($364 million).  Corporate tax revenue was set at $176 million – a number that was difficult for the group to determine due to all of the changes in federal corporate tax law.  Sales and Use Taxes are expected to increase in FY2019 by $30.5 million, with revenue from all state tax sources expected to rise $64.8 million.  Those are a lot of numbers to digest; but the bottom line is that the budget hole is far less than was predicted back in November, 2017. The FY2019 budget will still not be a cake walk, and some will argue that a few of the numbers may be a little optimistic, but the budget process of negotiations between the three sides has begun.
 
 
This Week At the State House
 
The House Finance Committee will take testimony on a proposed tax on carbon Tuesday in Room 35.  H.7400 (Reps. Regunberg, Handy, Keable, Carson, Tobon) creates the Energize Rhode Island Fund and deposits into it money collected through a carbon tax.  The tax is set at $15 per metric ton of carbon, charged at the first point of sale, and it increases by $5 per metric ton until it reaches $50 per metric ton.  This year’s bill has changed in that it requires two other states (Massachusetts and one other RGGI state) to pass a carbon tax before the Rhode Island tax would become effective; but the other states only have to pass a carbon tax of $5 per metric ton, not an equal tax.  The following chart shows the cent per gallon or dollar per gallon impact on prices:
 
Emission Factor kg CO2/unit
Tax Rate per metric ton
Gasoline
Diesel
LPG
Jet Fuel
Natural Gas

 
 
cents/gal
cents/gal
cents/gal
cents/gal
 Dollars/Mcf

First Year of Enactment
15
13.1
15.5
9.0
14.5
.8

Second Year of Enactment
20
17.5
20.7
12.0
19.3
1.1

Third Year of Enactment
25
21.9
25.8
15.0
24.2
1.4

Fourth Year of Enactment
30
26.2
31.0
18.0
29.0
1.7

Fifth Year of Enactment
35
30.6
36.2
21.0
33.8
1.9

Sixth Year of Enactment
40
35.0
41.3
24.0
38.7
2.2

Seventh Year of Enactment
45
39.4
46.5
27.0
43.5
2.5

Eighth Year of Enactment
50
43.7
51.7
30.0
48.3
2.8

 
International Carbon Bank & Exchange
http://www.icbe.com/carbondatabase/priceconverter.asp
 
In the first year of enactment alone, taxes assessed on gasoline, diesel and jet fuel could reach over $150 million.  The Chamber testified against the senate version (S.2188) and will testify against H.7400 as well.
 
The House Finance Committee will also hear testimony on H.7437 which would allow for internet lottery sales.  This initiative is particularly problematic for those businesses that sell lottery tickets as a part of their marketing strategy.  These business entities also ensure that age requirements are met for the legal purchase of tickets, and that the sales are remitted to the state.  The state of Georgia passed legislation allowing online lottery sales and found an off-shore company doing business under a name similar to its own state website.
 
On Thursday, the House Committee on Municipal Government will take testimony on H.8177 (Reps. Maldonado, McLaughlin, Barros, Tobon, and Edwards) in Room 205.  H.8177 was just introduced last week – the link can be found below in the new filed bills section of UTD.  H.8177 changes the definition of residential property under the City’s 3 class tier tax system.  The current definition includes all property fit for human habitation of 1 or more units.  The new proposed definition changes the qualifications to: “(A) Owner-occupied dwellings of no more than five (5) units; (B) Non owner-occupied dwellings of no more than five (5) units including properties for mixed use as residential and commercial properties; and (C) Units or dwellings with six (6) or more units.”
 
Political Update
 
As stated in last week’s 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. Hearn of Barrington does not plan to run for re-election.  Of course, Rep. Rugenberg from Providence will not be running for State Representative as he has declared for the Lt. Governor’s race so that seat will be open.  And Rep. Morgan’s seat in Coventry will be open as she runs for Governor.
 
 
The following bills were filed last week:
 
House Bill No. 8177
BY  Maldonado, McLaughlin, Barros, Tobon, Edwards
ENTITLED, AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES--CITY OF CENTRAL FALLS (Authorizes Central Falls to adopt 3 separate tax classifications of residential property consisting of tax rates: owner-occupied property of 5 units or less/dwellings of 6 units or more/non owner-occupied property of 5 units or less, including mixed use.)
 
House Bill No. 8179
BY  McEntee, Craven
ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND PARENTAL AND FAMILY MEDICAL LEAVE ACT (Allows employee granted unpaid family/parental leave to substitute any accrued vacation/sick/ other appropriate leave for any part of the unpaid leave.)
 
House Bill No. 8182
BY  Costantino, Lima, Hearn, Shekarchi, Winfield
ENTITLED, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- TRANSPORTATION NETWORK COMPANY SERVICES (Limits the maximum charge imposed by the Rhode Island airport corporation to three dollars ($3.00) per trip for transportation network company services.)
 
 

An Update from the State House
 
Thursday is a key day and will set the tone for the remainder of the legislative session.  At 9:00 a.m. in Room 35 at the State House, the House, the Senate and the Governor will meet for the final Revenue Estimating Conference.  The three sides will come to an agreement as to how much the state will collect in revenue for FY2019.  This number affects decisions over funding programs, cutting suggestions and tax increase proposals in the upcoming budget. Stay tuned for more information.
 
Wednesday
 
S.2871 (Senators Cano, Goldin, Goodwin, Gallo and Conley) provides an opportunity for employees affected by plant closings or mass layoffs to furnish competitive bids to purchase businesses otherwise at risk of reducing workforce.  The bill states that whenever an employer is required by the Worker Adjustment and Retraining Notification Act, to provide advance notice of a plant closing or mass layoff, the director of the department of labor and training must provide to the affected employees (1) written notice of the employee’s right to bid to purchase the business, and (2) materials explaining how to conduct an election to determine whether to pursue the purchase.   Employees would have 30 days after the receipt of the notice to gather signatures from 50% of the business’s employees who are interested in purchasing the company.  S.2871 explicitly states that nothing requires the owner of the business to sell to the employees.  The bill will be heard by the Senate Labor Committee Wednesday at the Rise – approximately 4:30 p.m.
  
Thursday
 
H.8120 (Rep. Keable, Newberry, Price, Handy, Ruggiero) received a hearing in the House Committee on Environment and Energy last Thursday and will now get a committee vote this Thursday.  H.8120 increases the number of people on the Energy Facilities Siting Board from 3 to 9.  Under current law, the Director of the PUC, DEM and the Director of Administration for Planning are the members of the board.  This bill would add the Department of Health, Attorney General, 4 members of the public (2 of which must be residents of the proposed host community of a facility, 1 appointed by the Attorney General with specific qualifications, and 1 who is a member of the Rhode Island Bar Association with specific qualifications).  If H.8120 were to pass it would be very difficult to site any energy facility in the state.
 
Political Update
 
May and June are critical months for politics as some officials decide whether they will run for office again this fall.  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.   So far, Rep. Jay O’Grady, Lincoln and Sen. Marc Cote, Woonsocket have publicly announced they will not seek re-election.
  
The following bills were filed last week:
 
House Bill No. 8149
BY  Morin, Phillips, Casey
ENTITLED, AN ACT RELATING TO MOTOR AND OTHER VEHICLES - REGISTRATION OF VEHICLES (Provides for a penalty of $500 for failure of RI residents to register their motor vehicle with the RI department of motor vehicles and establishes a hotline to report such violation.)
 
House Bill No. 8163
BY  Jacquard, Vella-Wilkinson, Messier, Morin
ENTITLED, AN ACT RELATING TO INSURANCE -- VOLUNTARY RESTRUCTURING OF SOLVENT INSURERS (Allows domestic insurance company to enter into a voluntary restructuring, including the use of a protected cell, with the approval of the commissioner.)
 
House Bill No. 8165
BY  Amore, Keable, Shekarchi, Maldonado, Fogarty
ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MECHANICAL TRADES (Adds thermal systems insulation to the regulation and licensing of mechanical trades.)
 
Senate Bill No. 2854
BY  Crowley
ENTITLED, AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES--CITY OF CENTRAL FALLS (Authorizes Central Falls to adopt 3 separate tax classifications of residential property consisting of tax rates: owner-occupied property of 5 units or less/dwellings of 6 units or more/non owner-occupied property of 5 units or less, including mixed use.)
 
Senate Bill No. 2871
BY  Cano, Goldin, Goodwin, Gallo, Conley
ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- DEPARTMENT OF LABOR AND TRAINING (Provides an opportunity for employees affected by plant closings or mass layoffs to furnish competitive bids to purchase businesses otherwise at risk of reducing workforce.)
 
 

 
 
Phase III of Legislative Session to Begin
 
Last week the legislature was on break, thus leaving little to say about legislative activity.  This will mark the beginning of the third phase of the legislative session.  Between now and July 1st the legislature will endeavor to pass a budget and negotiate controversial bills if possible, and decide which less contentious bills will become law in 2018.   This week the following bills will be considered:
 
Wednesday -
 
The House Judiciary Committee will take testimony on H.7500 (Reps Shanley, Coughlin, Solomon, Blazejewski, and Barros) which requires all residential property landlords to have a general liability insurance policy in place to cover up to $100,000 for those injured on the premises due to the landlord’s negligence.  A landlord must be able to show proof of coverage in any trespass action or possession action, otherwise the case cannot move forward until the liability policy is in full force and effect.
 
Unemployment benefits is the topic of discussion in the Senate Labor Committee.  S.2806 (Senator McCaffrey) 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 sixteen dollars ($616) per week.  The current maximum benefit rate is $566 per week – the 10th highest in the country.  S.2806 would also increase the maximum weekly dependents’ allowance from $141 to $154. 
 
 
The following bills were filed last week:
 
Due to the legislative break, no bills of interest were filed.

The Senate Labor Committee recommended passage S.2475 SubA unanimously last week (with a few amendments to the original bill).  The House Labor Committee has scheduled the House version - H.7427 – for a hearing Thursday, April 12th at approximately 4:30 pm in room 205 at the state house. 
 
These bills states, “No employer shall pay any of its employees at a wage rate less than the rate paid to employees of another race or color, religion, sex, sexual orientation, gender identity or expression, disability, age (40+), or country of ancestral origin for comparable work.”  Comparable work means “work requires comparable skill, effort and responsibility, and is performed under similar working conditions.”
 
An employer can pay employees differently if the differential is based on: (1) seniority, (2) a merit system, (3) a system that measures earnings by quantity or quality of production or is a bona fide factor such as travel, or a business necessity.  However – and it’s a big however – if the employee can show that an alternative to the business practice exists that would serve the same business purpose, and the business refuses to adopt this alternative, then the wage differential is unacceptable and the employer is in violation of the law.
 
Employers cannot ask for wage history at the time of an interview or at the time of offering a job.  An employee can offer his/her wage history voluntarily at the time a final salary is being negotiated.
 
Employers cannot lower anyone’s wages in order to meet the equal pay requirement.  Wages can only be increased.
 
Any employee that successfully challenges his/her wages is entitled to unpaid back wages, benefits, other compensatory damages and liquidated damages equal to three times the unpaid wages and benefits owed.  An employer who asks for salary history can be on the hook for up to $10,000 in special damages and punitive damages if the asking was deemed to have been done with malice or reckless indifference.
 
One amendment to the Senate bill allows the Department of Labor and Training or the court to lower any penalties assessed on an employer if the employer conducted a “fair pay analysis of the employer’s pay practices” within 3 years of the date an employee files a complaint.  The analysis must be (1) reasonable in detail and in scope based on the size of the employer, and (2) the analysis had to cover the protected class of the employee that filed the complaint; (3) the employer must have eliminated ay wage differential; and (4) the employer must collect data every year on the wages paid to employees broken down by gender, age, ethnicity, etc.
 
House Labor to Hear Minimum Wage Hike
 
On Thursday, April 12th the House Labor Committee will also be taking testimony on H.7636 (Reps. Ranglin-Vassell, Regunberg, Ajello, Hull and Bennett) which increases the minimum wage to $11 per hour as of January 1, 2019, and raises the wage every January 1st thereafter by $1 per hour until the wage reaches $15 per hour on January 1, 2023.  The wage would then increase every year based on the CPI index.  H.7636 also increases the tipped wage to $5 per hour starting January 1, 2019 and increase $1.25 every year thereafter until it matches the minimum wage.  This change would likely lead to the adoption of the European model for restaurants where tipping is not permitted.  The Chamber opposes the passage of H.7636.
 
Senator Labor Looks at Hoisting Engineer Apprenticeship Requirement
 
S.2620 is on the list of bills to be discussed at the Senate Labor Committee Wednesday, April 11th at approximately 4:30 in room 212.  This bill by Senators Ciccone, P Fogarty, Lombardi, and Nesselbush would require hoisting engineers to complete a 6,000 hour on-the-job training program as well as 432 hours of classroom training prior to obtaining a hoisting engineer’s license.  This new apprenticeship program governed by the Department of Labor, would not be required for those individuals with “restricted licenses,” or for individuals operating aerial lifts and hoisting equipment used in the assembly of elevators. 
 
The following bills were filed last week:
 
Senate Bill No. 2790
BY  Morgan, Paolino
ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - BREACH OF PERSONAL INFORMATION NOTIFICATION ACT (Establishes procedures to notify individuals of any breaches of their unencrypted personal information and penalties for any violation.)
 
Senate Bill No. 2806
BY  McCaffrey
ENTITLED, 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 sixteen dollars ($616) per week.)
 

​After taking testimony on S.2475 last week, the Senate Labor Committee has scheduled an April 4th VOTE on S.2475 (Senators Goldin, Goodwin, Ruggerio, Lynch Prata, and McCaffrey) which requires employers to pay employees at the same wage rate if they work in “comparable” jobs.  If an employer is deemed to be in violation of this act, the employer can not cure the situation by lowering the wages of other employees.  Any employee that successfully challenges his/her wages is entitled to unpaid back wages, benefits, other compensatory damages and liquidated damages equal to three times the unpaid wages and benefits owed.  The Chamber opposed S.2475 siting the lack of a workable definition for “comparable” work and the tremendous opportunity for costly litigation.  It’s unclear whether the bill may be amended in any way.  The bill can be found at http://webserver.rilin.state.ri.us/BillText/BillText18/SenateText18/S2475.pdf
Please contact your senator and express your concerns about the wording of this bill.
 
The second bill that is scheduled for a vote on April 4th is S.2638 (Senators Goodwin and Goldin).  Like S.2475, this bill was heard in the committee last week.  S.2638 requires businesses with 100 or more employees to file an annual report with the Department of Labor.  The report must contain information regarding the compensation and hours worked by employees broken down by gender, race, ethnicity, and job category.  Should an employer fail to submit the report, the Department can file and action in court to compel the company to comply.  The Chamber opposes S.2638.  If your company has 100 or more employees, contact your senator today!
 
 
Tuesday, April 3rd, the Senate Health and Human Resources Committee will take testimony on S.2237 (Senators Calkin, Seveney, Euer, Goldin, and Miller).  This bill eliminates the current health care system in Rhode Island and replaces it with a universal plan called the “Rhode Island Comprehensive Health Insurance Program” (RICHIP).  The program would cover:  primary and preventative care; dietary and nutritional therapies; inpatient care; outpatient care; emergency and urgently needed care; prescription drugs and medical devices; laboratory and diagnostic services;  palliative care; mental health services; oral health, including dental services, periodontics, oral surgery, and endodontics; substance abuse treatment services; physical therapy and chiropractic services;  vision care and vision correction; and hearing services, including coverage of hearing aids.  The program would be funded through a 10% payroll tax (80% paid by the employers and 20% paid by employees), a tax on income, with higher income brackets paying higher contributions, a 10% tax on unearned income, and a 10% payroll tax on self-employed individuals – of which that person pays 100% of the tax. 
 
The following bills were filed last week:
 
House Bill No. 8004
BY  McKiernan, O'Brien, Craven, McEntee, Williams
ENTITLED, 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 sixteen dollars ($616) per week.)
 
House Bill No. 8014
BY  Blazejewski, Bennett, Regunberg, Fogarty, Tanzi
ENTITLED, AN ACT RELATING TO BEHAVIORAL HEALTHCARE, DEVELOPMENTAL DISABILITIES AND HOSPITALS -- MENTAL HEALTH CONSUMER ADVOCATES OF RHODE ISLAND -- OASIS WELLNESS AND RECOVERY CENTER (Establishes a mental health consumer advocate and wellness recovery center to provide support for those suffering from mental health issues and would appropriate two-hundred ninety five thousand dollars ($295,000) to operate the program.)
 
House Bill No. 8015
BY  McKiernan, Williams, Lombardi, Hull, Lima
ENTITLED, AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Places limitations on the tax exempt real and personal property a nonprofit college, university or hospital may hold.)
 
House Bill No. 8016
BY  Tobon, Barros, Maldonado, Diaz, Edwards
ENTITLED, AN ACT RELATING TO TOWNS AND CITIES -- STATE AID (Appropriates $4,000,000 to the city of Pawtucket to clean and cap the city's municipal transfer station, and further appropriates another $1,000,000 to the city to market the property for a renewable energy facility or facilities.)
 
House Bill No. 8022
BY  Edwards, Keable, Johnston, Casey
ENTITLED, 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.)
 
Senate Bill No. 2747
BY  Euer, Coyne, Miller, Sosnowski, Calkin
ENTITLED, 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.)