​At the State House
 
As was stated last week, it seems the budget will be the focus of attention for the next month and a half followed by voting on the budget in November. 
 
This week, the House Finance Committee will meet Wednesday, 4:00 p.m. to take testimony surrounding the Governor’s request to amend Article 8 (Tax Article of the budget).  The amendment seeks to decouple Rhode Island tax law from the federal excess loss deduction found in 26 U.S.C. section 461(1)(1)(B) in tax years 2018-2020.  While disallowing a deduction in FY20 and FY21, the amendment would allow for 20% of the “disallowed” deduction to be taken each year in 2021-2025.  If this change is not included in the FY2021 budget, the federal allowance is estimated to cost the state $18.78 million in FY20 and $10.3 million in FY21.  The change would delay the financial hit to the state to $5.8 million in FY22 through FY26. The meeting will be live streamed at http://ritv.devosvideo.com/show?video=cd679c40105a .  No in-person testimony will be taken at the hearing.  If you wish to testify, you can send written testimony to cobrien@rilegislature.gov or request to be heard verbally by sending an email to the same address – include the bill number (Article 8 Amendment), your name, For/Against, phone number to be reached for providing testimony and affiliation (if any).
 
 
Carbon Pricing Study Update
 
Last Friday, two consultants provided an update on the carbon pricing study that is being undertaken as a result of legislation passed in 2019.  Three agencies – RI Department of Environmental Management, RI Department of Transportation and RI Office of Energy Resources - are working together on this project.  The consultants announced that they will be modeling six different scenarios under the study that take into account different carbon pricing points, the inclusion of varying level of incentives to the public and governments to use certain technologies, and varying levels of rebates (direct checks to individuals and/or businesses).
 
Program Incentives would include items like:  purchase of electric vehicles, free RIPTA fares, electric RIPTA bus purchases, electric vehicle changing station installations, air and ground source heating pump installations in buildings, and bike infrastructure creation.
 
The modelling will include a low price of $9 per metric ton by 2030 (which would likely bring RI to 45% below 1990 emission levels), to a high price starting at $88 per metric ton (likely bring RI to 71% below 1990 by 2030).  The high price point came from the federal American Opportunity Carbon Fee Act, a US legislative proposal touted by RI US Senator Sheldon Whitehouse.  The lowest model would start at $9 per metric ton in 2030 and go to $25 per metric ton by 2050.  The highest model (AOCFA) would start at $88 per metric ton in 2030 and go to $282 per metric ton in 2050.
 
What was very clear is that electric vehicles and electric heating of buildings are key to the models achieving the targets set in state statute, keeping in mind that the targets are “goals” and are not hard requirements enforceable by the courts.
 
The Consultants – Synapse and CADMUS – hope to have the final report completed November.  They have yet to add economic and health issues to the models.  They acknowledged that the modelling will assume a regional approach with neighboring states on board.  Without the regional approach, it is difficult to predict the health effects because migration of GHG would still exist, and economic predictions become more difficult as businesses and individuals can move across borders.

 At the State House
 
No hearings have been scheduled for this week.  The staff at the State House is reportedly returning to the building this week. 
 
September Primary
 
Today is Primary Day in Rhode Island! If you have not voted yet, please take the time to visit your polling place today. 
 
RI Mobility Innovation Working Group
 
The EC4 Committee established a working group to develop ideas of how to decarbonize the transportation sector in the State of Rhode Island.  This group held a two-hour zoom meeting last week.  Dan Sperling, from the Institute of Transportation Studies in California led the meeting with a presentation which can be summed up in his vision of “Heaven” and “Hell.”  Heaven would have 100% electric vehicle use, a clean energy mix for transportation, public transit, shared intelligent vehicles and better livability for people.  Hell would have increased congestion, electricity produced with coal, increased travel demand, a more car dependent society, and a decreased role for mass transit.  Sperling reported that California is about to adopt legislation requiring Uber/Lyft vehicles to be electric only and to provide more pooling services.
 
The second presentation came from Dream Corp – Green For All, a Rhode Island organization that looks at demographic information and how it relates to green energy.  According to Green For All, people of color have longer commute times and they tend to own no vehicles; and that dynamic is coupled with a lack of diversity and good jobs in the clean transportation workforce. The organization states that 8% of white families do not own a vehicle, 18% of families of color do not own a vehicle and 20% of Latino families do not own vehicles.  Green For All believes that “Equality” is achieved when everyone gets something; “Equity” is achieved when everyone gets what they need.  The organization is pushing Rhode Island to achieve Equity.
 
Terry Gray, Deputy Director for Environmental Protection (DEM), provided an update on TCI – the cap and trade program for gasoline, diesel and heating oil.  Due to COVID-19, the timetable has changed slightly.  The Governors of 12-13 states hope to sign a Memorandum of Understanding (MOU) late fall, followed by the adoption of a model rule for how the states would implement the program - including how to track compliance and run the auctions for credits.  The participating states hope to have the program details worked out in 2021, and to hold the first auction in 2022.  The TCI program is expected to raise millions of dollars from the fuel position holders (owners of fuel at the distribution point in each state), which in turn would raise the price of fuel and act as an incentive for individuals and businesses to switch to renewable fuel sources for transportation and heating purposes.
 
The meeting ended with the statement that “Rhode Island is positioned to be a leader in transportation transformation.”

​At the State House
 
No hearings have been scheduled for this week.  The staff at the State House is continuing to work virtually due to safety concerns.
 
September Primary
 
The September primary is approaching quickly – September 8th.  If you have not requested a mail ballot, you still have two options to vote.  For many state representatives and state senators, the primary is THE election because they have no opponent in November.  That makes this primary extremely important. 
 
If you wish to vote in person on September 8th, you can find your voting location at https://vote.sos.ri.gov/Home/PollingPlaces?ActiveFlag=2
 
Registered voters also have the option to vote early in-person between August 19th and September 8th.  In the 20 days leading up to Election Day, you can vote in person at your city or town hall during their regular business hours. This is a great option if you are unable to vote at your usual polling place on Election Day, or if you have run out of time to request a mail ballot.  Simply go to your local board of canvassers in your city/town  https://vote.sos.ri.gov/Elections/LocalBoards, present a valid photo ID, fill out the ballot that is given to you and then place it into the voting machine – Done!

At the State House
 
Last Week
 
Last week the House Finance Committee was provided a briefing on Governor Raimondo’s request for a major increase in bond authorization, as well as a couple new bills introduced by the House Speaker and House Finance Chairman.  Should the General Assembly include any or all bond requests in the FY2021 budget, those requests would then be placed on the ballot for consideration by Rhode Island voters.
 
The Governor’s request to amend Article 5 - Capital Bonding includes the following:
 
1.  Additional $5 million for recreational facility improvements, and I-195 infrastructure
 
2.  Additional $223 million for housing and infrastructure of which $40 million would go to community development housing projects, $107 million for health laboratories, $35 million for off-shore wind, and industrial land preparation projects, $11 million for Quonset dredging of Pier II, and a new $30 million bond for transportation infrastructure to make up for the decrease in gas tax revenue
 
Topic                                           Original Request            New Article              Change

Higher Education                         $117.3 million               $117.3 million              $0
Environment & Recreation          $  64.0 million               $  69.0 million             $5 mill
Housing & Infrastructure             $  87.5 million               $310.5 million            $223.0 mill
 
Total Bond Request                     $268.8 million               $496.8 million            $228.0 mill

 
Treasurer Magaziner, provided testimony through his staff suggesting the State could withstand an additional $200 million in bonding in order to assist in the economic rebuilding of the Rhode Island as a result of the COVID pandemic.  In June, the Treasurer’s office acknowledged that the original bond proposal exceeded 1 of 4 recommended limits used when evaluating debt proposals, but also stated that limits can be exceeded in times unforeseen events.
 
The Environment & Recreation bond shifts $1 million from the RICAP (a state pay–as-you-go fund) for beaches, parks and campgrounds to a bond and also shifts $4 million for the I-195 Park to a bond.
 
The House Finance staff provided background information in the area of housing bonds.  In 2006, RI voters approved a $50 million housing bond that was ultimately used to fund 1,077 rental units and 149 ownership units for a total of 1,226 units.  In 2012, the passage of a $25 million bond brought 726 rental units and 22 ownership units into the marketplace.  In 2016, the voters approved a $40 million bond that allowed 1,078 rental units and 42 ownership units to be created.  The new proposal calls for a $65 million bond of which $45 million would be used for the Affordable Housing program for purchase and rehab of housing units, pre-development expenses, home repairs and in-law apartments.  Twenty million dollars of the bond would be used form community revitalization programs.
 
For a more thorough look at what is in the proposal, the House fiscal staff review can be accessed at:  http://www.rilegislature.gov/Special/comdoc/House%20Finance/07-29-2020%20%20July%2029%20Debt%20and%20TANS.pdf  The Department of Health’s presentation on the medical laboratory can be viewed at:  http://www.rilegislature.gov/Special/comdoc/House%20Finance/07-29-2020%20%20RIDOH%20COE%20for%20Laboratory_7.29.pdf
And Secretary Pryor’s presentation on the economic development portion of the bond request can be accessed at:  http://www.rilegislature.gov/Special/comdoc/House%20Finance/07-29-2020%20%20Commerce%20RI%20House%20Finance%20Bond%20Hearing_7.29.2020.pdf
 
Two bills introduced last week were held by the House Finance Committee for further study.  Under current law, the General Assembly may only spend 97% of general revenues.  Three percent of the revenues go into the State’s Rainy Day Fund.  If the Rainy Day Fund exceeds 5% of revenues, then the amount over the 5% threshold goes into the State’s capital account.  In 2006, RI voters changed the State Constitution to require the capital account (RICAP) to be used for projects only – not to pay down State debt.
 
H.8119 asks voters to increase the amount sent each year to the Rainy Day Fund to 5% of general revenues, meaning the State could only “spend” 95% of the estimated general revenue instead of 97%.  The bill also increases the threshold amount from 5% to 10%, meaning more money could build up in the Rainy Day Fund before it was shifted to the capital account to be spent on pay-as-you-go projects.
 
H.8120 calls for the same final result as H.8119, but spaces the fiscal changes over a ten year period.  The amount of money deposited into the Rainy Day Fund would increase by .2% increments over the 10 years to get to 95%; and the increase in the amount held in the Rainy Day Fund before transferring it to the capital fund would increase in .5% increments.
 
 
The following new bills were filed last week:
 
House Resolution No. 8119   Mattiello, Abney, JOINT RESOLUTION TO APPROVE AND PUBLISH AND SUBMIT TO THE ELECTORS A PROPOSITION OF AMENDMENT TO THE CONSTITUTION OF THE STATE (LIMITATIONS ON STATE SPENDING) (This joint resolution proposes to submit to the electors a proposition to amend the constitution by increasing funding of the budget reserve account, also known as the "Rainy Day Fund", and limiting state spending.)
 
House Bill No. 8120  Mattiello, Abney, AN ACT RELATING TO PUBLIC FINANCE -- STATE BUDGET RESERVE AND CASH STABILIZATION ACCOUNT (This act would increase funding of the budget reserve account, also known as the "Rainy Day Fund," and would limit state spending.)

​At the State House
 
At the time of writing Under the Dome, only one hearing has been posted for this week.  Congress continues to discuss and debate various aid packages; and until that process is complete, it will be difficult for the State to move forward on a budget.  Please continue to watch your email.  We will notify you if something new comes to light.
 
Tuesday, July 28th  
 
The Senate Finance Committee will take testimony at 4:00 p.m. on the Governor’s Budget Article 20, Section 13 (RIte Share). 
 
The proposal requires businesses with 50+ employees to:
 
(1) Submit an annual report to the Executive Office and Health and Human Services and the Division of Taxation providing “sufficient and necessary information for the Medicaid agency to determine employee eligibility for RIte Share.  This language is concerning because no one knows for sure what it means.  Is it simply a list of employees who are covered by insurance and the health insurance plan offered by business? Is it a more comprehensive report providing personal information about each employee that does not have coverage including family income, size or alternate health care information?  Failure to submit the information requested results in a $5000 fine which is too high.
(2) Submit quarterly reports outlining which employees are enrolled in the employer’s health care plan and which employees are not covered.  The quarterly report must also include the names of individuals no longer employed by the business.  Failure to file this report brings a fine of $2500 – again, too high. 
(3)  Refrain from offering employees a financial incentive to turn down the employer’s health insurance and remain on Medicaid.  This language could be interpreted to ban giving employees a bump in pay if they do not take the employer’s health insurance.  Some employees choose to take a spouse’s or a parent’s health coverage.  We want to be sure employees are not penalized for making good family choices, nor are employers penalized by requiring double health coverage on employees which would be a waste of economic resources.
It unclear whether these provisions would apply to businesses with 50 or more individuals working; or if, like the Affordable Care Act, it would apply to businesses with 50 or more FTEs (employees working 30 or more hours a week).  The ACA also excludes seasonal businesses where employees work less than 120 days a year or less than 4 calendar months. 
Members of the public may submit written testimony to: SLegislation@rilegislature.gov  Testimony submitted prior to 3:00 PM on the date of the hearing will be provided to the members of the committee at the hearing and will be included in the meeting records. Testimony submitted after that time will be placed on file.
 
 

​At the State House
 
Both the House and Senate Finance Committees are meeting this week to continue their preparations for the creation of a FY2021 budget.
 
Tuesday, July 21st
 
The House Finance Committee will take testimony at 4:00 p.m. on the Governor’s Budget Article 2, sections 2-5, and Article 3, section 1-4, 6, 8 and 10.
 
Article 2 addresses the use of the Opioid Assessment Fund, a $5 million assessment levied on manufacturers, distributors and wholesalers of prescription opioid drugs.  In reality, most of the assessment falls on the distributors – the entities that deliver the prescription drugs from the manufacturers to the pharmacies.
Article 3, section 1, starts out addressing the licensing of home inspectors.  The passage of a licensing test was required up to July, 2019.  Article 3 moves the test requirement date to December 31 2019.  It also provides an alternative avenue for licensing of two years in the practice of conducting home inspections and 150 home inspections completed prior to December 31, 2019.  Under current law, the inspections had to be complete prior to July 1, 2013.  This may be a clean-up section to address those who failed to achieve the hours or inspection requirements by the July 2019 date.
The Article has similar language for well-drilling contractors (section 2).   Current law calls for the implementation of a test requirement starting January 1, 2018.  This Article changes the written testing date to July 1, 2020.
Licensing for roofing contractors (under section 3) would become a two-year license instead of a one-year license and would allow them to spread the ten continuing roofing education requirements over two years.  The Article eliminates the need to obtain a $100,000 bond for each single project undertaken but would increase the insurance certificate amount from $1.5 million to $2 million.  Lastly, the Article extends the testing grandfather clause (no test required) if the roofer was registered and in good standing by July 1, 2015 (current law says July 1, 2003).
Article 3, section 4, changes the way payments made by individuals convicted of a crime are distributed.  Current law calls for restitution to the victim first, then court cost, fees and fines.  This proposal calls for the court costs and expenses related to prosecution to be paid first, then restitution, then court fines and fees. The State has the right to sell seized property that was obtained illegally if that property would otherwise be destroyed and the property is not harmful to the public.  Ten percent (10%) of the funds raised through the sale of the property currently goes to the Department of Health.  Article 3 proposed to divert that 10% to the Department of Behavioral Healthcare, Developmental Disabilities and Hospitals (BHDDH) for substance abuse prevention and treatment programs.
Commercial Drivers’ License (CDL) skills tests would be transferred from CCRI to DMV with the fee set at $100 per test under section 6 of the Article.
Last year’s budget established a pilot program for the collection of debts owed to the State.  This budget Article 3, section 8, requires all agencies and quasi-public agencies to participate in the debt collection program by October 1, 2020.  It gives the Department of Revenue the ability to negotiate settlements.  If less than 50% of the debt is collected, the new collection unit keeps 15%.
 
The House Finance Committee will also hear H.7531, An Act Relating to Taxation.  This bill was submitted at the request of the Department of Revenue.  H.7531 requires larger businesses to file taxes electronically beginning January 1, 2021.  “Larger business” is defined as a business that has an annual combined tax liability, payable to the Division of Taxation, of $5000 or more.  The definition also includes any business whose annual gross income is over $100,000 for the entity.  Failure to file the correct tax amount electronically, will subject the business to a penalty of 5% of the tax liability amount not filed, or $500, whichever is less.  An additional penalty of $50 can also be assessed by the Division.  If passed, the new procedure would be required for the 2020 tax year for taxes due January 1, 2021 and thereafter.
 
 
Written testimony to the House Finance Committee should be submitted to cobrien@rilegislature.gov . For those who would prefer the option to provide verbal testimony please send an email to cobrien@rilegislature.gov  with the following information: Bill # (or specific topic) you are testifying on, For/Against, Your Name and Phone number (to be reached for your testimony) and Affiliation: (if any) *Deadline to request verbal testimony is Tuesday, July 21, 2020 at 11am.
 
 
The Senate Finance Committee will accept testimony on the Governor’s newly proposed Article providing appropriations for an Education Center in Northern Rhode Island to be located on Main Street in Woonsocket.  The language can be found at: http://www.omb.ri.gov/documents/Prior%20Year%20Budgets/Operating%20Budget%202021/Amendments/2_New%20Article%20-%20Relating%20to%20Lease%20Approval.pdf
Members of the public wishing to testify may submit written testimony to: SLegislation@rilegislature.gov
 
 
Wednesday July 22nd  
 
The Senate Finance Committee will accept testimony at 4:00 pm on Article 20 (all of the Article EXCEPT section 13 RIte Share) of the Governor’s proposed budget. It seeks to insert into state law, the federal Affordable Care Act to ensure that should the federal government disband the program, Rhode Island would continue on its own.  It also makes other changes to health insurance.  The Article removes insurer’s ability to use prior continuous coverage for one year as an eligibility requirement to enter the individual health insurance market.  Carriers must offer all of their health insurance plans to any Rhode Island resident.  Carriers cannot require copays or deductibles or other cost-sharing mechanisms for preventative services provided by in-network providers.  This same requirement applies to large group health insurance coverage or to small employer health insurance plans.
The Article creates multi-state licensing compact programs for physicians, nurses (RNs and LPN/VNs), psychologists and telepsychologists, physical therapists, and emergency medical personnel (EMTs, advanced EMTs and paramedics).  All of these compacts require the states to establish a common database of licensees and to communicate complaints received as well as any actions taken against bad actors.
The Committee will also accept testimony on the Governor’s proposed new Article concerning telemedicine.  The proposed Article seeks to place, in statute, a health care benefit adopted to face the challenges that came with the arrival of the COVID19 pandemic, a highly contagious viral infection.  In response to necessary shelter-in-place requirements, Governor Raimondo signed an Executive order calling for insurers to cover telemedicine visits while the coronavirus emergency continued.  The Executive Order included a ban on co-pays or cost-sharing measures as many Rhode Islanders lost jobs and struggled with income. 
 
Telemedicine is a useful tool and certainly provides valuable services to individuals.  In some instances, telemedicine has the opportunity to help a patient AND save the health care system time and money.  In other instances, telemedicine can cost the system money while providing less effective patient care. 
 
This Article is different from the Senate bill that passed the Senate June 17th, but has some similar goals.  The proposed Article creates one process from now until June 30, 2021, and a different process starting July 1, 2021.
 
From now until June 30, 2021, the term “telemedicine” would include real time two-way audio visual communication and audio-only telephone communication.  It specifically excludes email, texts or fax communication which is helpful.  Insurers could not exclude coverage for telemedicine as long as it is “medically appropriate” (although the determination of appropriateness has to take into consideration any existing public health emergency).  No copay or deductible can be charged by the insurer in “excess of what would be charged” for an in person visit.  In-network primary care visits and behavioral health visits could not require a prior authorization from the insurer; and insurers cannot dictate certain technology requirements for telemedicine visits.  Lastly, rates paid to “in network” providers must be the same for telemedicine as for in-person visits.  There is a question that needs to be asked – is it appropriate to charge the same for a telephone call as for an “in-person” visit?  The answer may be “yes” for certain appointments like a half hour psychologist session; but it may be “no” for an audio-only annual physical vs. an in-person annual physical. 
Starting July 1, 2021, “telemedicine” would no longer include audio only visits (nor would email, fax or text be covered as an appointment).  Insurers could begin to adopt different provider payments for telemedicine visits, but they must still cover telemedicine if it is “medically appropriate.”  Lastly, insurers can impose a deductible or copay for telemedicine.  These changes seem positive as long as “medically appropriate” is determined using quality data and utilization information.
 
The proposed Article also includes the creation of a stakeholder advisory group.  The Chamber asked for the inclusion of such a group in its testimony on the Senate telemedicine bill.  The stakeholder group is charged with reviewing utilization data and recommending rates and policies surrounding telemedicine.  The Governor’s proposed new Article does not list who would be included as a member of the stakeholder group.  The Chamber continues to advocate for equal representation from the business community (purchasers of insurance and self-insureds), insurance providers, health care providers, regulators and user representatives.  If this group is to be effective, it must be balanced.  This task force could look at what disciplines make sense for telemedicine visits, as well as how to create a system to ensure provider visits are necessary and effective, and to recommend elements that should be adopted in a system that is cost-effective and affordable.  Any increase in health insurance premiums would only serve to hurt those businesses that are trying to get our state’s economy going again.
 
Lastly, the proposed new Article pushes the Office of the Health Insurance Commissioner into the business of adopting new laws.  The recommendations and ideas that come forward from the stakeholder group, created under this Article, would go to OHIC; and OHIC would determine what changes should be made in the insurance coverage world. 
 
Members of the public wishing to testify may submit written testimony to: SLegislation@rilegislature.gov
 
 
 
The following new bills were filed last week:
 
House Resolution No. 8106  Shekarchi, Casimiro, Ackerman, Serpa, Craven,  HOUSE RESOLUTION CREATING A SPECIAL LEGISLATIVE COMMISSION TO STUDY AND PROVIDE RECOMMENDATIONS ON THE STATUS AND REQUIREMENTS FOR RHODE ISLAND'S NURSING HOMES (Creates a 15 member commission to study and provide recommendations on the status and requirements for Rhode Island's nursing homes, and who would report back by April 15, 2021, and would expire on July 15, 2021.)
 
House Bill No. 8113  Casimiro, Caldwell, Shekarchi, McEntee, Alzate, AN ACT RELATING TO EDUCATION (Designates physical, occupational, speech, and music therapies and behavioral health services as essential special services to be provided to students with disabilities during times of a declared emergency.)
 
House Resolution No. 8116  Williams, Blazejewski, Alzate, Giraldo, Vella-Wilkinson, HOUSE RESOLUTION RESPECTFULLY REQUESTING THAT GOVERNOR RAIMONDO ISSUE AN EXECUTIVE ORDER IMPOSING A MORATORIUM ON EVICTIONS DUE TO THE NOVEL CORONAVIRUS DISEASE (COVID-19), WHILE AT THE SAME TIME EXPLORING WAYS TO PROTECT LANDLORDS


House Bill No. 8117  Williams, Hull, Blazejewski, Alzate, Slater, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- MINORITY BUSINESS ENTERPRISE (Redefines contractor and minority business enterprise to include any business, profit or nonprofit, organized under laws of any state, even if located outside RI, would apply to RIDOT contracts and relieves businesses from having limit on its net worth.)
 

​At the State House
 
There are a few committee hearings of note scheduled for this week, however the state house remains closed to the public.  Both the House and Senate Committees are accepting written testimony from the public.  In addition, the House has created a process should a person feel it is necessary to testify verbally/remotely.  The instructions can be found below.
 
Tuesday, July 7th
 
The Senate Finance Committee will meet at 4:00 p.m. to accept testimony from the Governor’s staff concerning Article 8 section 2 and section 6 (Hotel tax), Article 8 section 3 (US Treasury Offset Program), Article 11 (Economic Development) and Article 12 (Housing).  Last week’s edition of Under the Dome reviewed these articles.  Article 8 section 6 was added to the agenda this week.  This is the section that calls for a 1% increase in the hotel tax.  The public may submit written testimony only by emailing it to SLegislation@rilegislature.gov . 
 
House Judiciary will meet at 4:30 p.m. and H.7947, An Act Relating to Labor and Labor Relations – Equal Opportunity and Affirmative Action – Licensing, is on the agenda.  The bill declares it unlawful to disqualify a person for an occupational license, permit or certification due to a prior criminal conviction, unless the crime is directly related to the occupation for which the license/permit/certification applies.  A license cannot be suspended for an unrelated crime as well.  Finally the bill establishes a process for considering the licensing of the individual even if the crime was directly related, such as passage of time since the crime, juvenile status, etc.  http://webserver.rilin.state.ri.us/BillText/BillText20/HouseText20/H7947.pdf  Anyone wishing to testify by writing can submit comments to rdimezza@rilegislature.gov or for those who would prefer the option to provide verbal testimony please send an email to rdimezza@rilegislature.gov with the following information: Bill # you are testifying on For/Against, Your Name and Phone number (to be reached for your testimony), Affiliation: (if any)  The Deadline to request verbal testimony is Tuesday, July 7, 2020 at 11am.
 
 
Wednesday July 8th
 
Both the House and Senate Labor Committees will be hearing testimony on the firefighter cancer bills.  H.7449, An Act Relating to Towns and Cities – Cancer Benefits for Firefighters will be heard in an amended form – H.7449 SubA.  The SubA states that firefighters diagnosed with cancer have a “conclusive presumption” that the cancer is an occupational related cancer if they were hired prior to the date H.7449 SubA passes.  Firefighters hired after the date of passage will also have a conclusive presumption UNLESS (1) that firefighter received a physical at the time of hiring and cancer was detected, (2) the firefighter is on the job for two years or less at the time of diagnosis, or (3) the firefighter “regularly or habitually used tobacco products during the 5 years prior to diagnosis.”  The bill is both retroactive and prospective.  Anyone wishing to testify in House Labor may submit comments to jdecastro@rilegislature.gov . For those who would prefer the option to provide verbal testimony please send an email to jdecastro@rilegislature.gov with the following information: Bill # you are testifying on For/Against, Your Name and Phone number (to be reached for your testimony), Affiliation: (if any)  Deadline to request verbal testimony is Wednesday, July 8, 2020 by 11:00 AM. 
 
The Senate bill will be heard by the Senate Labor Committee at 4:00 p.m. (S.2302 SubA, An Act Relating to Towns and Cities – Cancer Benefits for Firefighters).  Members of the public wishing to testify may submit written testimony to: SLegislation@rilegislature.gov
 
 
Thursday, July 9th
 
The Senate Finance Committee will hold a hearing on Article 19 (Workforce Development) of the Governor’s proposed budget.  The Committee will also receive a report on the financial status of the Unemployment Trust Fund and “potential employer tax schedule changes.”  Members of the public wishing to testify may submit written testimony to: SLegislation@rilegislature.gov
 
Article 19 is a 52 page Article that focuses on the construction industry and a few other areas of policy was outlined in last week’s edition of Under the Dome.  If you are a member of the construction industry, the Chamber strongly urges you to read the Article which can be found at http://webserver.rilin.state.ri.us/BillText20/HouseText20/Article-019.pdf
 
 
The House Finance Committee will meet at 4:00 p.m. to take testimony on Article 10 section 7 – the Governor’s RI Promise expansion proposal.  The scholarship program, for high school students entering CCRI to obtain an Associate’s Degree, is set to sunset at the end of this year.  The Governor’s proposal would remove the sunset, making the program permanent; and it extends the scholarship to individuals completing a “certificate program with labor market value as defined by the Postsecondary Commissioner.”
 
The Committee will also take testimony on a new budget request from Governor Raimondo submitted to the committee on July 2nd.  The request is for the passage of a joint resolution authorizing the State Properties Committee to enter into a 10 year lease agreement for a property on Main Street in Woonsocket for a northern RI and Woonsocket Education & Industry Center.  The rent in year 1 could be no more than $180,600 and no more than $247,000 by year 10. 
 
Anyone wishing to testify on either issue should submit written testimony to cobrien@rilegislature.gov . For those who would prefer the option to provide verbal testimony please send an email to cobrien@rilegislature.gov with the following information: Bill # (or specific topic) you are testifying on For/Against Your Name and Phone number (to be reached for your testimony) Affiliation: (if any)   Deadline to request verbal testimony is Thursday, July 9, 2020 at 11am.
 
 
New bills filed last week:
 
House Bill No. 8085  Williams, AN ACT RELATING TO LABOR AND LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION (This is the annual workers' compensation omnibus bill. It would slightly alter the process and type of benefits for which work-related injured employees of uninsured employers may seek compensation.)
 
Senate Bill No. 2915  Ciccone, AN ACT RELATING TO LABOR AND LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION (This is the annual workers' compensation omnibus bill. It would slightly alter the process and type of benefits for which work-related injured employees of uninsured employers may seek compensation.)
 
 

​At the State House
  
The General Assembly is currently in a semi-holding pattern awaiting word from Washington D.C.  There are reports that the federal House and Senate hope to come to a consensus on a state financial aid package by the end of July.  With that as a backdrop, the Rhode Island legislature has decided to wait to see how much assistance is coming to the state before preparing a budget for fiscal year 2021.  If no aid is provided, the state faces a revenue shortfall of over $500 million.  To close that gap would require a reorganization of state and local government and services. 
 
For these reasons, the state budget process will most likely pick up in August.  Keep watching Tuesdays for Under the Dome.  However, if the Chamber has nothing to report, then no edition will be sent to you.
 
Senate Finance Committee To Meet in July
 
On Tuesday, July 7th at 4:00 p.m., the Senate Finance Committee is scheduled to meet to accept testimony from the Governor’s staff concerning Article 8 section 2 (Hotel tax), Article 8 section 3 (US Treasury Offset Program), Article 11 (Economic Development) and Article 12 (Housing).  As the Governor stated in a press conference, this budget was put forward at a different economic climate, so it is hard to know which initiatives the Governor still believes are possible in FY2021.  The Senate Finance Committee may gain some insight through the testimony provided virtually at this hearing.  The public may submit written testimony only.  At this time there is no process listed for the public to testify verbally.
 
Article 8, section 2 proposes to change the way in which the hotel tax is distributed starting July 1, 2020.  The distribution percentage of the tax collected changes, but keep in mind the Governor also proposed a 1% increase in the hotel tax (the increase is not part of the hearing on the 7th).  Cities and Towns get 20.8% of the tax collected – down from the current 25%.  The Providence and Warwick Tourism districts see their percentage lower from 30% to 25%.  The Aquidneck Island Tourism District percentage lowers from 45% to 37.5%.  Regional Tourism Districts such as the Blackstone Valley see a decrease from 45% to 37.5%.  The amount of hotel tax going to the Commerce Corporation lowers in all regions about 3% to 3.5%.  And, for the first time, 16.7% of the hotel tax generated would go to the General Fund for State use.
 
Article 11 seeks to accomplish the following:

• Gives the Commerce Corporation the ability to establish a site readiness committee that could step in to assist municipalities in creating sites ready and available to companies wishing to move into the state, including permitting processes, regulations and parcel planning.  Municipalities can opt into the program, but once a municipality opts in, the rules cannot be changed.  In the event a hope community opts in and provides a tax stabilization program agreement in connection with a project, then that community can apply to the commerce corporation for a partial reimbursement of up to 25% of the forgone tax revenue.  The Commerce Corporation may only grant five certifications in any calendar year.
• Changes the Rebuild RI Tax Credit Act which is meant as a gap fund to help get projects over the success line.  Current law calls for a maximum credit of 20% of the project cost.  The Governor’s budget reduces the maximum credit to 15% unless the building involves a “recognized historic structure” or infrastructure costs that exceed 20% of the project costs, at which point the maximum would remain at 20%.
• Increases the maximum aggregate credits that can be issued from $210 million to $250 million
• Extends the sunset provision for the Rebuild RI Tax Credit, RI Tax Increment Financing, Tax Stabilization Incentive, Wave Closing Fund, I-195 Fund, Small Business Assistance Program, Main Street Program, Innovation Initiative, Industry Cluster Grant, High School Employer Partnership, RI Jobs Incentive and the Air Service Fund.  All of these programs will sunset as of December 31, 2020, unless legislative action is taken.  The Governor is asking for a 3-year extension. 

 
Article 12 adds two members to the RI Housing and Mortgage Finance Corporation, and creates an Executive Branch division of housing and community development (DHCD).  This division becomes responsible for creating a housing strategic plan and takes over responsibilities of the current Office of Housing and Community Development.  Article 12 establishes a “Housing Incentives for Municipalities” program.  Municipalities could designate areas as housing incentive districts.  The state agency would then be able to help cities and towns with technical assistance as well as providing school impact offset payments (“a payment to a city or town to help offset increased municipal costs of educating eligible students”).  In order to pay for the proposed programs, the Governor included in the budget an increase in the real estate conveyance tax.  The tax would remain at $2.30 per each $500 in sales price for the first $500,000; and would double to $4.60 per each $500 over $500,000.  The revenues collected from the portion of tax levied on the sales price over $500,000 (the new $4.60 per each $500) would distributed as follows:  $.30 to the distressed community relief program; $.30 to the Housing and Community Development Restricted Receipt Account; $2.30 to a new housing production fund; $.60 to general revenue; and the remaining $1.10 goes to the municipalities.  However, municipalities must pay a 2% administration fee to the division of taxation ($.022).
 
The meeting will be streamed live online via Capitol TV at http://www.rilegislature.gov/CapTV/Pages/default.aspx.  Members of the public wishing to testify may submit written testimony to: SLegislation@rilegislature.gov
 
 
On Thursday, July 9th, the Senate Finance Committee will hold a hearing on Article 19 (Workforce Development) of the Governor’s proposed budget.  The Committee will also receive a report on the financial status of the Unemployment Trust Fund and “potential employer tax schedule changes.”  Like the meeting to be held July 7th, this meeting will be streamed live online via Capitol TV at www.rilegislature.gov/CapTV/Pages/default.aspx . Members of the public wishing to testify may submit written testimony to: SLegislation@rilegislature.gov
 
Article 19 is a 52 page Article that focuses on the construction industry and a few other areas of policy.  If you are a member of the construction industry, the Chamber strongly urges you to read the Article which can be found at http://webserver.rilin.state.ri.us/BillText20/HouseText20/Article-019.pdf
Electrician (Class B) apprenticeship programs still require 8000 hours of on-the-job learning but it appears to eliminate the requirement to complete that training within 4 years.  Maintenance electrician (Class M) still have 6000 hours but no longer within 3 years; and Lightning Protection Installers still need 4000 hours but no longer within 2 years.  If an electrical apprentice obtained an associate degree in electrical technology, that person can get credit for 288 hours of academic instruction toward the apprenticeship requirement.  The Electrician’s Board can also grant 144 hours of credit to apprentices that completed a high school electrical technology program.
Changes to the apprenticeship requirements are also made for electrical sign installers, plumbers, telecommunications, refrigeration technicians, pipefitters, and oil burnerpersons.
Of interest to all Rhode Island taxpayers is a section in Article 19 that only allows construction companies with apprenticeship programs, in every trade needed to build a school, to bid on a school construction project valued at $5 million or more.  The Article states that 10% of the workers in each trade on the job must be apprentices, and that the company bidding must verify that it can meet this requirement at the time of bidding – not at the time the job begins.  What does this mean in the real world?  It means that only union construction companies will be able to bid on these projects, thus reducing the number of competitive bidders on school projects over $5 million.  The Article does provide an out for the winning bidder if they determine there is a lack of apprentices in a specific field as long as the company demonstrated a good faith effort to comply.  This allowance comes after the bid has been awarded, however.  In a merit shop construction company (non-union), apprentices are full time employees of the individual company.  The apprentice attends night classes and the individual company provides the on-the-job training requirement with approval by the Department of Labor.  If the merit shop company does not have enough work for that apprentice, then – like most businesses – that employee will likely be laid off or terminated.  A union construction company is different.  The company calls the union hall and relays how many apprentices the company needs for a job.  Joe Smith may work for one company one week and a different union company another week.  Union construction companies can claim all of the union hall members as potential employees when attempting to qualify for bids.  Merit shops can only claim their own full time employees.  For this reason, it is extremely unlikely that any merit shop company will be able to bid on school buildings valued at $5 million or more should Article 19 pass.
Article 19 adds a provision to include nonprofit organizations with more than 1000 employees in the Job Development Assessment fee.  In 2020, the taxable wage base for this fee is $24,000 per employee ($25,500 for those employers that have an unemployment experience rate of 9.19 or higher); and the tax rate is .21% (.0021).
Finally, this Article increases the earned-income tax credit.  The Rhode Island tax credit would remain at 15% of the federal earned-income tax credit until December 31, 2020.  The credit would increase to 16% from January 1, 2021 to December 31, 2021; 17% from January 1, 2022 to December 31, 2022; 18% from January 1, 2023 to December 31, 2023; 19% from January 1, 2024 to December 31, 2024; and to 20% effective January 1, 2025.

​At the State House
 
The State House will be open this week to legislators, staff and those with appointments, according to a notice by Department of Administration Director Brett Smiley.  Anyone else is welcome to remain outside the building as long as social distancing is maintained.
 
On Tuesday at 3:00 p.m., the House Finance Committee is scheduled to discuss and to likely vote on a bill to close the $240 million gap in the current year fiscal budget.  As this edition of Under the Dome is being written, the supplemental budget is still being discussed and the draft product has not been released.  The deficit solution could include use of the State’s rainy day fund, as well as scoops of various programs such as the Oil Spill Prevention Administration and Response fund, the Underground Storage Tank Fund, and Rhode Island Resource Recovery just to name a few.  The plan will also likely include use of the federal CARES Act funds.   The bill to be considered by the committee will be posted online June 15th at http://status.rilin.state.ri.us/documents/agenda-16911.pdf
 
The Chamber has submitted a letter asking the legislature NOT to include language in the supplemental budget to make permanent Governor Raimondo’s Executive Order requiring health insurance to cover telemedicine for all medical visits without co-pays, cost sharing or preauthorization from a primary care physician.  The Chamber made clear that the business community supports telemedicine as a useful tool to enhance healthcare; but permanently banning any requirement for co-pays, cost sharing or preauthorization protocols could lead to high utilization of the health care system with no way to curb costs or to dissuade unnecessary visits.  Additionally, without further defining what must be included in a “visit,” a provider could bill the same amount for a quick phone call, as is billed for an in-person visit that includes taking of vitals, etc.  These are details that should be a part of the telemedicine cost-effective discussion prior to passage of legislation.  The business community cannot shoulder the expected increase in premiums, especially at this difficult time.
 
The Senate Finance Committee is scheduled to discuss the supplemental budget Tuesday at 4:00 p.m. in anticipation of House passage.  This would allow the Senate Finance Committee to meet again to discuss only changes made by the House floor, if any, and move the bill to the Senate calendar more quickly.
 
The House and Senate are expected to vote on the supplemental budget this week.  Sessions are scheduled for Wednesday and Thursday.
 
 
 
 
Last Week
 
The House Finance Committee met last week.  On the agenda was H.7246, An Act Relating to Taxation-Historic Tax Credits 2013.  This bill calls for the repeal of the sunset of the Historic Tax Credit program.  The program was very successful in the past, but was also very costly.  The State has been unable to fund the program the last few years due to budget constraints.  If H.7246 fails to pass, the Historic Tax Credit program would be eliminated from statute and restarting a similar program would take action by the House, Senate and Governor.  If the bill passes or is amended to extend the sunset for another year or two (more likely), then the legislature could simply fund the program in a future budget without the need to pass legislation to re-create the details of the program.
 
The Small Business Committee reviewed a presentation given by the RI Hospitality Association outlining what has happened in the restaurant and hotel industries as a result of the COVID19 crisis.  Between March 1 and April 16, 60% of operators temporarily closed their businesses, 93% of restaurants laid off or furloughed employees (roughly 40,000 people).  One hundred ninety million dollars ($190 million) in restaurants sales were lost in April.  The March meals and beverage tax declined 35.6% compared to March 2019.  On average, RI restaurant operators reported an 83% decline in sales from May 1 – May 15.  On the hotel side, the March hotel tax declined 55.9% when compared to March 2019.   Hotel occupancy in April, 2020 was only 21.7%.  In April, 2019, the occupancy rate was 65%.  These are sobering statistics.  As the economy continues to re-open, please consider enjoying food from one of our state’s restaurant treasures.
 
The following new bills were filed last week:
 
House Bill No. 8015  Edwards, AN ACT RELATING TO TOWNS AND CITIES - GENERAL POWERS (Allows city/town/fire district to continue operations in state/local emergency when financial budget process is interrupted and to conduct virtual meetings during emergencies retroactive to March 9, 2020.)
 
Senate Bill No. 2857   Coyne, AN ACT RELATING TO FINANCIAL INSTITUTIONS -- THE ELDER ADULT FINANCIAL EXPLOITATION PREVENTION ACT (Requires employees of regulated financial institutions to report suspected financial exploitation of elder adults to the office of healthy aging and provide authority to the regulated financial institution to place a temporary hold on transactions.)
 
Senate Bill No. 2864  Conley, AN ACT RELATING TO TOWNS AND CITIES - GENERAL POWERS (Allows city/town/fire district to continue operations in state/local emergency when financial budget process is interrupted and to conduct virtual meetings during emergencies retroactive to March 9, 2020.)
 
Senate Resolution No. 2867  Metts, Ruggerio, McCaffrey, Goodwin, Coyne, SENATE RESOLUTION CREATING A SPECIAL LEGISLATIVE TASK FORCE TO REVIEW AND PROVIDE RECOMMENDATIONS ON POLICIES PERTAINING TO THE RHODE ISLAND LAW ENFORCEMENT OFFICERS’ BILL OF RIGHTS (LEOBOR) (Creates a 13 member task force to study and provide recommendations on policies pertaining to the RI Law Enforcement Officers’ Bill of Rights, and who would report back to the Senate by February 9, 2021, and expires on May 9, 2021.)