​At The State House
The Senate Labor Committee will take testimony on Wednesday, January 29th, At the Rise (approximately 4:30 p.m.) in the Senate Lounge, on three bills.  S.2092 is the workplace bullying bill that the Senate has passed the last couple years.  The bills proposes to make employers vicariously liable for bullying activities between employees.  The employee can also be held liable.  Abusive conduct includes verbal and physical abuse as well as sexual harassment.  S.2143 raises the minimum wage each year until the wage reaches $15 in January, 2025.  After that, the wage would increase based on the cost of living index.  The bill also raises the tip wage gradually to $15 by 2028.  At that point the tipped wage would equal the state’s minimum wage.  Effectively, this would change the restaurant business to the European model where tipping does not occur.  Lastly, the Committee will take testimony on S.2147, which raises the minimum wage to $11.25 on July 1, 2020, followed by increase every year thereafter ($12, $13, $14 and $15) until the wage reaches $15 on January 1, 2024.
 
Governor FY2021 Budget
Article 20 – Healthcare Reform Act
The 123-page article touches many areas of the healthcare system.  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.
Last year, the Governor proposed a Medicaid tax/assessment on larger employers.  This tax/assessment was placed on qualifying employers based on the number of employees in the company that utilize Medicaid.  The Chamber and other business organizations pushed back, arguing that the tax/assessment was substantial and unpredictable since employers can’t ask employees whether or not they access or plan to access Medicaid.  This year the Governor chose not to include the tax/assessment; but she did create a reporting requirement for businesses with more than 50 employees.  If your business has 50 employees (no distinction between part time and full time) or more on any given day between July 1, 2019 and June 30, 2020, you are included in this requirement.  Each July 1 – June 30 is a new year and businesses must make the same determination as to whether they meet the 50 employee threshold. 
So what is the program and what are the business requirements?
Rhode Island has a program called RIte Share.  Under federal law, Rhode Island is permitted to pay a Medicaid-eligible person’s share of the costs for enrolling in an employer-sponsored health insurance (ESI) if it is cost effective. The ESIs have to meet certain cost and coverage requirements.  The Governor’s plan expands RIte Share to include wrap-around services (costs associated with services not included in an ESI but covered under Medicaid) and premium coverage for employees covered by Medicaid but not the ESI.
Employers with more than 50 employees would be required to annually provide to the State “sufficient and necessary information” for the Medicaid agency to determine an employee’s eligibility for the expanded RIte Share program.  Also, employers would have to provide quarterly reports (1) notifying the State when an employee is no longer working for the employer or has lost ESI, and (2) stating which employees are covered by ESI and which employees are not covered.  Employers would be required to provide employees with information about RIte Share with enrollment materials; and to participate in an employer education and outreach campaign to be run by the Executive Office of Human Services.  The first report would be due between November 15, 2020, and December 15, 2020.  Lastly, employers would NOT be able to offer “financial incentives for employees to turn down ESI and remain on Medicaid.”  This last requirement seems to suggest that employers could not provide any financial “bump” to employees that choose to decline health insurance for any reason (even if the spouse has insurance), because the employer would have to delve into the employee’s reasons for turning down the insurance in order to provide the financial “bump.” 
The penalties for noncompliance are steep.  Failure to timely report leads to a $2500 fine.  Falsifying data is a $5000 fine.
This provision of the Article – reports by employers with 50+ employees – is proposed to become effective upon passage.
 
Article 14 – Relating to Medical Assistance
Article 14 addresses Medicaid payments and reimbursement rates.  Current law allows for direct vendor payments for medical care; and this article would additionally allow the Executive Office of Health and Human Services (EOHHS) to allow for additional payment options.  Other changes to the Medicaid program include:

• $3.00 copay for inpatient hospitalization (individuals over 19 years of age who are not disabled, in a facility or pregnant, and for which an aggregate of the new copays would not exceed 5% of the countable income)
• $1.00 copay for certain drugs for diabetes, high blood pressure and high cholesterol
• $3.65 (a $.65 increase) copay for all other drugs
• No copay for family planning prescription drugs
• Medicaid services cannot be withheld due to the beneficiary’s inability to pay a copay
• No increase in the Diagnosis Related Groups method of payment from July 1, 2020 to June 30, 2021 for fee-for-service inpatient hospital services (this rate was increased in 2018)
• Holds the fee for out-patient services to the rates established July 1, 2019.
• Effective October 1, 2020, Medicaid rates for nursing facilities would be increased by 1%, but the increase in payment must be used to increase wages paid to direct care staff

The Article then requests permission from the General Assembly to make the following changes to the health care system:

• Eliminate risk share arrangements with health plans and increase capitation rates
• Increase non-emergency medical transportation rates
• Provide coverage for Doula services (Doulas assist women through pregnancy)
• Require for-profit employers with 50+ employees to submit the information discussed in Article 20 which is outlined above and allow for the promulgation of any regulations that might be necessary to carry out that reporting program
• Increase wages for direct care employees of the Department of Behavioral Healthcare, Developmental Disabilities and Hospitals (BHDDH)
• Review Medicaid requirements and opportunities under the Patient Protection and Affordable Care Act of 2010 and pursue “any changes in the Rhode Island Medicaid program that promote service quality, access and cost-effectiveness that may warrant a Medicaid state plan amendment”

These proposed changes likely apply to Medicaid and RIte Share only, but the Chamber will be reaching the matter further.
 
The following bills were filed last week:
House Bill No. 7186    Phillips, Casey, Serodio, Hawkins, Ruggiero, 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. 7224   Edwards, Diaz, Slater, Bennett, Williams, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS-MINORITY BUSINESS ENTERPRISE (Provides that any women's business enterprise that is certified under the Federal Small Business Act would be deemed certified by the department of administration as a women's business enterprise.)
 
House Bill No. 7225    Edwards, Diaz, Slater, Williams, AN ACT RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES (Eliminates repealed statute references and create a mechanism for employees to enforce their existing right to continuation of medical benefits.)
 
House Bill No. 7226    Edwards, Donovan, Cassar, Canario, Diaz, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- UNLAWFUL EMPLOYMENT PRACTICES (Prohibits an employer, employment agency, labor organization, or employee, to commit any act declared to be an unlawful employment practice; individuals would be held personally liable for such conduct.)
 
House Bill No. 7227    Donovan, Williams, Alzate, Shekarchi, Blazejewski, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Comprehensively addresses wage discrimination by expanding employee protections and the scope of the remedies available to employees who have experienced wage discrimination.)
 
House Bill No. 7268   Diaz, Alzate, Mendez, Bennett, AN ACT RELATING TO HEALTH AND SAFETY - PUBLIC HEALTH AND WORKPLACE SAFETY ACT (Provides that any law or regulation which protects a person from exposure to second hand smoke would also provide protection from exposure to second-hand marijuana smoke, regardless of how the smoke was generated.)
 
House Bill No. 7287   Shekarchi, Edwards, Noret, Serodio, Amore, AN ACT RELATING TO LABOR AND LABOR RELATIONS – MINIMUM WAGES (Repeals § 28-12-9 of the general laws which provides that the director of labor and training may approve of wages below the minimum wage for those persons whose earning capacity is impaired due to physical or mental disability.)
 
House Bill No. 7306    McEntee, Shekarchi, Bennett, Craven, Knight, AN ACT RELATING TO HEALTH AND SAFETY -- PLASTIC WASTE REDUCTION ACT (Creates the "Plastic Waste Reduction Act" designed to reduce the use of plastic bags by retail establishments by offering recyclable bag options and providing penalties for violations.)
 
House Bill No. 7307   Cortvriend, Marszalkowski, Speakman, Shekarchi, Ranglin-Vassell, AN ACT RELATING TO HEALTH AND SAFETY - PFAS IN FOOD PACKAGING (Prohibits PFAS, a class of fluorinated organic chemicals, from being used in food packaging.)
 
House Bill No. 7310   Shanley, Barros, Casimiro, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES (Phases out the tangible tax for businesses over five years, while reimbursing the city, towns, and fire districts 50% of the revenue lost. Provides that each city or town would receive 0.05% of any sales tax revenue generated within said city or town.)
 
House Bill No. 7311   Shanley, Barros, Casimiro, AN ACT RELATING TO TAXATION -- INVESTMENT TAX CREDIT (Requires a business entity receiving tax incentives from the state of Rhode Island or a local municipality to report their eligibility said tax incentive.)
 
Senate Bill No. 2030   DiPalma, Euer, Goldin, Seveney, Paolino, AN ACT RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - INTERNET PRIVACY AND SECURITY (Establishes that manufacturers of devices capable of connecting to the Internet equip the devices with reasonable security features.)
 
Senate Bill No. 2046   DiPalma, Seveney, Satchell, Valverde, Euer, AN ACT RELATING TO TAXATION - JOBS DEVELOPMENT ACT (Sunsets/discontinues the Jobs Development Act rate reduction as of July 1, 2020.)
 
Senate Bill No. 2047    Satchell, Valverde, Euer, Conley, Miller, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (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.)
 
Senate Bill No. 2056   Felag, Sosnowski, Cano, DiPalma, Seveney, AN ACT RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY AND COMPUTATION (Eliminates the sales tax on taxi services and pet care services.)
 
Senate Bill No. 2059   Satchell, Seveney, Conley, Bell, Quezada, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Adds three (3) new income tax brackets at rates of 7,99%, 8.49% and 8.99% for taxable income from $275,000 to over $1,000,000 effective January 1, 2021.)
 
Senate Bill No. 2068   Satchell, Sosnowski, Quezada, Seveney, Coyne, AN ACT RELATING TO HEALTH AND SAFETY -- PROHIBITION OF PFAS IN FOOD PACKAGING ACT (Prohibits PFAS, a class of fluorinated organic chemicals, from being used in food packaging.)
 
Senate Bill No. 2072   Archambault, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- SIZE, WEIGHT AND LOAD LIMITS--SMITHFIELD AND LINCOLN (Prohibits commercial motor trucks, with a gross weight rating of twenty-six thousand one pounds (26,001 lbs.) or more, from traveling on Limerock Road, in Smithfield and Lincoln.)
 
Senate Bill No. 2092  Ciccone, Nesselbush, Bell, Quezada, Picard, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- HEALTHY WORKPLACE (Provides for opt-out of information disclosure by HIE of confidential health care information.)
 
Senate Bill No. 2108   Sosnowski, McCaffrey, Lynch Prata, Conley, McKenney, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2020 (Establishes a fee on companies that sell fossil fuels in Rhode Island for consumption or distribution within the state and establishes an "economic and climate resilience fund" to disburse the collected funds.)
 
Senate Bill No. 2125   Sosnowski, McCaffrey, Lynch Prata, Goodwin, Gallo, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Prohibits insurance companies from varying the premium rates charged for a health coverage plan based on the gender of the individual policy holder, enrollee, subscriber, or member.)
 
Senate Bill No. 2140    Euer, Goldin, Murray, Valverde, Cano, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Forbids an employer to require an employee to execute a nondisclosure agreement; or non-disparagement agreement regarding alleged violations of civil rights or criminal conduct as a condition of employment.)
 
Senate Bill No. 2143   Quezada, Valverde, Nesselbush, Metts, Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Gradually increases the hourly minimum wage from $10.50 to $15 by July 1, 2024, and the hourly minimum wage for employees receiving gratuities from $3.89 an hour to $15 an hour by January 1, 2028.)
 

​Governor Releases FY2021 Budget
Last Thursday, Governor Raimondo released her plan for State revenue and spending.  The 621 page, $10 billion plan deals with everything from sales tax expansions to bonds to health care.  There are 22 separate Articles in the budget.  Over the next few weeks, Under the Dome will look at the various articles of the document as well as the potential effects on segments of the business community.
 
Article 8 – Taxes
Since taxes are on everyone’s mind, we start with Article 8, Relating to Taxes.  The Article does the following:

• Lowers the manufacturing tax on “still wines” from $1.40 per gallon to $.60 per gallon
• Lowers the manufacturing tax on spirits (whiskey, rum, gin, etc.) from $5.40 per gallon to $3.75 per gallon
• Creates a new program (a federal payment offset and state payment offset reciprocal program) to assist in the collection of federal and state taxes owed and nontax debts owed.  The State could charge the federal government an administrative fee for assisting in the collections of federal debts owed.
• Expands the 7% sales tax to hunting trapping and shooting services, which would include fishing guides, fishing clubs, archery ranges, shooting clubs, etc.
• Expands the sales tax to lobbying services as defined in RIGL 139.1-3(a).  As last year, this specific statute refers to all lobbyists – both contract and in-house lobbyists, meaning organizations with employees acting as lobbyists could be required to pay a sales tax on the employee’s wages associated with the act of lobbying. 
• Expands the sales tax to computer system design and related services (projects that require writing, modifying, testing, and supporting software to meet the needs of a particular customer; planning and designing computer systems that integrate computer hardware, software, and communication technologies; providing on-site management and operation of clients' computer systems and/or data processing facilities; and other related services such as computer disaster recovery.
• Expands sales tax to interior design services, and courier and messenger services (the Article specifically states that “delivery charges” are different and not subject to sales tax.
• Allows the State to transfer to the general revenue fund 2% of the local meals and beverage tax collected for the municipalities as an administration fee.
• Eliminates the sales tax exemption for alcoholic beverages sold by Class A licensees (liquor stores)
• Increases the hotel tax from 5% to 6% starting July 1, 2020

 
Article 8 also 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 increases the tax by 1%.  Cities and Towns get 20.8% of the tax collected – down from the current 25%.  The Providence Convention and Visitors Bureau percentage lowers differently in different regions.  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 6 – Fees
This broad Article addresses many different programs:

• Allows the Department of Health to establish a fee for conducting data analysis that takes more than 15 hours.  Requestors of information must be notified of the costs in advance.  This does not apply to data subject to the public access records law.
• Increases the civil penalty for the misclassification of employees.  In 2012 the business community supported an increase in this penalty to $1500 - $3000 per misclassified employee.  The Governor proposes to increase the penalty to $3000 - $4000 per misclassified employee.
• Establishes a penalty for construction companies working on state projects that violate labor payment rules.  The penalty would be equal to two to three times the amount agreed due and payable if the company enters into a settlement agreement with the Department of Labor.  This Article also changes the hearing date timeframe for DLT from 10 days to 30 days, with a DLT timeframe to enter a decision after the hearing from 10 days to 30 days.  This increase in timeframe guarantees that if a violation (innocent or deliberate) occurs, it will cost the company more in penalties as the amount due and payable adds up over the additional time allotted to DLT to respond.
• Increases Fire Marshall fees for building permits.  For construction cost buildings of $500 or less, the fee goes from $25 to $35.  For construction cost building between $500 and $1000, the fee goes from $35 to $45.  Buildings between $1000 and $2000 see a fee increase from $45 to $55.  Building cost between $2000 and $500,000 get a fee increase from $45 to $55 plus $7 (instead of $6) per $1000 fraction over $2000.  If the building cost is over $500,000 then the fee goes from $3,033 to $3,292 plus $6.75 (instead of $4) per $1000 or fraction over $500,000.
• Increases the Fire Marshall fee for inspections from $100 to $250.  However, this new higher fee covers the initial inspection and any subsequent re-inspections.
• Increases permit fees for explosives.  Manufacturer’s permit increases from $85 to $100. Dealer’s permit increases from $50 to $100.  Possessor’s permit increases from $50 to $100.  Under current law, a User’s permit is $50 per $10,000 of product – that fee would become a flat $50 fee.
• Eliminates the $25 fee for a blaster apprentice permit
• Adds a new $15 late fee for the renewal of a driver’s license, chauffeur’s license, CDL license and car registration that has expired
• Provides a second option for obtaining DMV operator records.  Under current law, obtaining a certified record is $16.  The budget includes an option to obtain the record online for $20
• Institutes a $100 restoration fee for motor vehicle registrations that were revoked due to a failure to repair equipment following the receipt of a citation by the police, or a revocation due to the failure to have the vehicle inspected as required under state law.
• Institutes a new fee of $250 if convicted of driving under the influence of alcohol or drugs.  This is in addition to all of the penalties assessed under current law.  The money is to be used for substance abuse prevention programs and student drug abuse programs.  The budget also includes a new $250 fee for refusing to submit to a chemical test when driving.  This new fee is in addition to the $950 fees that exist in current law for refusal to submit to the test.
• Establishes a $50 application fee for the sheriffs’ training academy, although the fee can be waived in hardship cases
• Lastly, Article 6 includes a new chapter dealing with electric and gas distribution companies.  The Article requires these companies to establish emergency preparation plans by June 1, 2021.   Failure to submit the plan results in a fine of $500 per day.  The Public Utilities Commission can also assess a penalty up to $100,000 for each day (up to $7.5 million) if a company fails to comply with its plan during an outage or other event.  The monies raised through this penalty would go back to the company’s customers.

 
Article 7 – Environment
Article 7 addresses most of the fees associated with hunting and fishing in the state.  In the interest of space, each fee increase will not be listed, but can be found starting on page 125 of the H.7171 http://webserver.rilin.state.ri.us/BillText20/HouseText20/H7171.pdf .  The following license fees increase:

• Freshwater fishing license
• Hunting license
• Combination fishing and hunting license
• Deer permits
• Wild turkey permits
• Fur trapper license
• Waterfowl stamp fee
• Trout conservation stamp fee

 
Article 7 also establishes new requirements for “landing” marine species.  The language states, “All residents and nonresidents…who have charge of a vessel carrying seafood products legally harvested outside Rhode Island water shall obtain a permit to land, sell or offer for sale seafood products in Rhode Island.”  The fee for a resident to “land” is $300; $600 for a nonresident.  The Article goes on to say “No person, partnership, firm, association, or corporation shall barter or trade in marine species taken by persons licensed …unless a license so to do has been obtained from the director of environmental management.”  This language seems to suggest that any individual or company that buys marine species (lobsters, crabs, fish, etc.) from a licensed fisherman/woman must also be licensed to purchase the seafood.  The fees range from $300 to $450 depending upon the species to be purchased.  While this language may have been designed to affect wholesale or retail dealers of marine species, it could be interpreted to include businesses such as restaurants or, in the most extreme interpretation of the language, to individuals who go to a boat to buy lobsters for dinner. 
Lastly, Article 7 increases the Oil Spill Prevention Administration and Response (OSPAR) fee from five cents ($.05) per barrel on petroleum products brought into the state to ten cents ($.10) per barrel.  The five cent fee raises about $1.5 million annually.  Three cents of the new fee would go to a new climate change fund called the Ocean State Climate Adaptation and Resilience Fund.  The other two cents would stay in the OSPAR Fund.  Monies in the OPSAR fund have been taken each year for many projects unrelated to the original purpose of the fund.  The fund will soon not be able to meet the needs of the original purpose – a preemption fund for marine oil spills.
 
 
The following bills were filed last week:
 
House Bill No. 7107  Knight, Cassar, McEntee, Speakman, Blazejewski, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES (Requires the state, including all its agencies and departments, to purchase one hundred percent (100%) of their energy needs from renewable sources by January 1, 2031.)
 
House Bill No. 7108  Knight, Cassar, McEntee, Speakman, Blazejewski, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- MOTOR VEHICLES OWNED BY A GOVERNMENTAL BODY (Requires that all vehicles owned and operated by a governmental body be electric powered within ten (10) years, exclusive of trucks and law enforcement vehicles.)
 
House Bill No. 7120  Bennett, McNamara, Edwards, Cassar, Corvese, AN ACT RELATING TO HEALTH AND SAFETY -- LICENSING OF MASSAGE THERAPISTS (Moves the disciplinary process for massage therapists from the board of physical therapy to the board of massage therapists.)
 
House Bill No. 7142  Williams, Craven, Blazejewski, Knight, Alzate, AN ACT RELATING TO CRIMINAL PROCEDURE - EXPUNGEMENT OF CRIMINAL RECORDS (Provides those persons who have previously been convicted of marijuana possession, which would now constitute a decriminalized offense, to have their records for those convictions automatically expunged regardless of their criminal history.)
 
House Bill No. 7153  Corvese, Canario, Vella-Wilkinson, Azzinaro, Ucci, AN ACT RELATING TO COMMERCIAL LAW - UNFAIR SALES PRACTICES - GIFT CERTIFICATES (Requires issuers of gift certificates to deposit and hold funds used to purchase the gift certificate in escrow for three (3) years, or until the gift certificate is redeemed, and would restrict certain redemption terms in the event of bankruptcy.)
 
House Bill No. 7157  Bennett, Lima, Canario, Jackson, Blazejewski, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Increases the minimum wage starting on July 1, 2020, from the present amount of $10.50 each year until July 1, 2024 where it will reach $15 per hour.)
 
House Bill No. 7163  Bennett, Canario, Jackson, Vella-Wilkinson, Handy, AN ACT RELATING TO FOOD AND DRUGS -- SINGLE-USE PLASTIC STRAWS (Prohibits food service establishments from providing plastic straws, unless requested by the consumer. Notices and fined issued upon violation.)
 
House Bill No. 7164  Bennett, Canario, Jackson, Vella-Wilkinson, Handy, AN ACT RELATING TO FOOD AND DRUGS -- DISPOSABLE FOOD SERVICE CONTAINERS (Prohibits a covered establishment from preparing, selling, processing or providing food or beverages in or on a disposable food service container that is composed in whole or in part of polystyrene foam.)
 

​An Update from the State House
 
Welcome to the first edition of Under the Dome 2020! 
January 7, 2020, was the official start of a new legislative session.  Because it is the second year of a legislative cycle, all leaders stay in place and committee assignments are expected to remain the same.
Governor Raimondo will be giving the State of the State Address to the General Assembly and to the public Tuesday, January 14th at 7:00 p.m.  She will outline her legislative priorities for 2020 and is expected to talk about her proposed budget which is set to be released Thursday, January 16th. 
During the upcoming year, the Chamber may ask you to contact your legislators when the need arises.  Please go to the Rhode Island Secretary of State’s web page, https://vote.sos.ri.gov/ and enter your information as requested (if you live in Rhode Island), so that you will know who represents you as a State Representative and a State Senator.  Thank you for your help!
 
Legislative Calendar
The calendar for 2020 has been released.  The key dates to keep in mind are:
Opening Day                                                               January 7, 2020
Last Day for Senate Public Bill Introduction             February 13, 2020
Last Day for House Public Bill Introduction             February 13, 2020
Winter Recess                                                             February 17-21, 2020
Spring Recess                                                             April 13-17, 2020
 
For those readers who go to the State House often, be aware that Spring Recess is the same week as the Initial House Bill hearing Deadline (commonly referred to as “cross-over week”). 
 
What Is TCI About?
You may have seen reports in the media about Governor Raimondo signing on to a program called TCI.  TCI stands for Transportation Climate Initiative.  It is an initiative that environmental agencies, from 12 states and the District of Columbia, have been quietly working on for a few years.  The states released a draft memorandum of understanding (MOU) December 17, 2019 and have requested public input by February 28, 2020.  The MOU can be found at: https://www.transportationandclimate.org/sites/default/files/FINAL%20TCI_draft-MOU_20191217.pdf  
The proposal includes a cap on carbon dioxide emissions generated from the use of transportation gasoline and on-road diesel fuel.  A transportation emissions cap would be set and would decrease over time.  The goal is reduce transportation emissions by either 20%, 22% or 25% over 10 years.  Described at its most simplistic level, fuel suppliers in the TCI region would be assigned a certain allowance for emissions; and each suppler would pay a fee to the program to obtain that assigned allowance.  If a supplier wishes to exceed its allowance (for example, sell more gasoline or on-road diesel in a state than the cap allows), that supplier would have to buy credits from another supplier that has not exceeded its allowance.  Credits are bought and sold at auctions run by the TCI group; and all of the money raised is proposed to be used by states to fund programs to reduce the need for gasoline or on-road diesel.  TCI stated “If the regulated entities in the petroleum industry choose to pass the costs of compliance with a cap and invest program on to consumers, our modeling estimates an incremental price increase in 2022 of $0.05, $0.09 or $0.17 per gallon in the 20%, 22% and 25% Cap Reduction Scenarios, respectively.”  TCI did not provide an estimate of the amount that would be raised by program.  See the following site for the TCI analysis of the program https://www.transportationandclimate.org/sites/default/files/TCI%20Modeling-Results-Summary_12.17.2019.pdf 
Rhode Island currently has a cap and trade program (TCI calls it a “cap and investment” program) for emissions related to the generation of electricity.  The cost of that cap and trade program is folded into the electricity bills of Rhode Island consumers.  This TCI program is similar – just geared toward transportation fuels. 
TCI hopes to develop a final MOU by Spring of 2020, at which time each state will decide whether or not to ultimately sign on to participate in the program.  By the Fall of 2020, TCI plans to have a final model rule drafted for the participants, with a program implementation rollout as early as 2022.  To date, New Hampshire’s Governor Sununu has voiced his reluctance to sign the MOU.  Massachusetts Governor Baker and Governor Raimondo have voiced support for the MOU. 
 
The following bills were filed last week:
 
House Bill No. 7038  (Lombardi, Hull)  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 5.5%, whichever is greater, unless there is approval of a higher rate by the general assembly.)
 
House Bill No. 7042  (Shanley, Alzate, Solomon, Johnston, Ruggiero)  AN ACT RELATING TO INSURANCE -- UNANTICIPATED OUT-OF-NETWORK BILLS FOR HEALTH CARE SERVICES (Protects people with health insurance from surprise medical bills for emergency and other services by requiring a non-participating health care provider to bill an insured party only for a co-payment, or deductible.)
 
House Bill No. 7046  (Lombardi, Hull, Walsh, Fogarty, Lyle)  AN ACT RELATING TO FOOD AND DRUGS -- COSMETIC LABELING (Requires that all cosmetics manufactured, sold, delivered, or held for offering to be sold contain a label that completely and accurately lists all of its component ingredient.)
 
House Bill No. 7083  (Casimiro, McEntee, Carson, Knight, Craven)  AN ACT RELATING TO TOWNS AND CITIES -- COASTAL AND RIVERINE HOME PROTECTION (Enables cities and towns to provide property tax relief to individuals who take resiliency measures to rehabilitate their property because of flood hazards.)
 
Senate Bill No. 2003  (Ruggerio, Sosnowski, Coyne, Euer, Miller)  AN ACT RELATING TO HEALTH AND SAFETY - PLASTIC WASTE REDUCTION ACT (Creates the "Plastic Waste Reduction Act" designed to reduce the use of plastic bags by retail establishments by offering recyclable bag options and providing penalties for violations.)

​2019 Legislative Wrap-up
The legislature has been forwarding bills to Governor Raimondo for her consideration.  While most bills were either signed or allowed to become law without the Governor’s signature, three bills were vetoed:  H.6250 and S.46 (Allows a school district to conduct instruction through virtual education up to 5 days when schools have been closed due to inclement weather, emergency or any nonscheduled school closings); and H.6102 (An motor vehicle insurer found in violation of the unfair claims settlement practices act can be liable for 3 times the amount of damages).  These three bills could be reconsidered if the General Assembly comes back into session in September or October.  A fall session could also include the IGT contract with the Lottery Commission. 
 
The following bills became law this session:
 
H.5116 SubA and S.889 – All Rhode Island retail establishments must accept currency as payment for goods or services.  No store, restaurant, service establishment, etc. can require customers to pay with a credit card or other credit device.  An exemption does exist for on-line internet sales.  Violations are subject to the Deceptive Trade Practices Act.  The Attorney General can file suit against the business and civil as well as private penalties can be assessed.  Chapters 47 and 78 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5116A.pdf  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0889.pdf
 
H.5129 SubA and S.154 SubA - Any condominium association that fails to provide a resale certificate to the unit owner within 10 days of a written request by the unit owner is subject to a civil penalty between $100 and $500 per occurrence.  Chapters 48 and 39 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5129A.pdf  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0154A.pdf
 
H.5145 SubA and S.395 SubA – These bills give the Secretary of State, in conjunction with the Department of Environmental Management to issue certificates of adoption of transparency and sustainability standards to business entities that meets criteria to be set by those agencies and pay the corresponding fee.  The voluntary program seems to seek to encourage businesses to voluntarily look at environmental sustainability issues as well as social responsibilities.  Chapters 186 and 206 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5145A.pdf  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0395A.pdf
 
H.5151 SubA as amended – the FY2020 budget passed both the House and Senate without any broad-based taxes including the Medicaid assessment, the expansion of sales tax on business services, the increase in cell phone fees, scooping of various funds, the lobbyist tax, the tobacco taxes, and the hotel tax.  The budget maintains the phase-out of the car tax.  The budget did decrease the current fiscal year budget for the Real Jobs Development Program.  This budget was what some people referred to as a status quo budget, but it was a good budget for the business community in comparison to where it started in the process.  Chapter 88 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5151Aaa.pdf
 
H.5189 and S.134 -  These laws provide that the non-resident withholding requirement for a corporation that sells real estate be consistent with the 7% corporate income tax. Chapters 175 and 235 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5189.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0134.pdf
 
H.5241 SubA and S.37 SubA – Sports Wagering Authorization.  Chapters 8 and 7 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5241A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0037A.pdf
 
H.5278 SubA and S.251 SubA - Extends the requirement to collect sales tax to remote sellers in a way that conforms to a recent U.S. Supreme Court decision making it easier for states to compel collection/sales tax from retailers who do not have a physical presence in their state. Chapters 11 and 12 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5278A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0251A.pdf
 
H.5287 SubA as amended and S.431 Sub A as amended - Require that all defined pension plans, excluding certain governmental plans, which are not covered by the ERISA and have at least two hundred (200) members, comply with ERISA's annual reporting provisions.  Chapters 52 and 67 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5287Aaa.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0431Aaa.pdf
 
H.5299 as amended and S.308 SubA – These new laws make it a violation of state law to take an animal into a public place, where pets are not permitted, and state that the animal is a service animal if the animal is not a service animal.  Such activity is considered a civil violation of law punishable by up to 30 hours of community service for an organization that serves individuals with disabilities. Chapters 96 and 131 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5299aa.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0308A.pdf
 
H.5305 – This law concerns the State’s Uninsured Protection Fund which helps injured employees in the event the employer does not carry workers compensation insurance.  The fund is replenished by amounts recovered from the uninsured employer.  Prior to the passage of H.5305, the law applied to injuries sustained on or after February 1, 2019.  With the passage of this new law, it will apply to injuries sustained on or after September 1, 2019.  Chapter 9 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5305.pdf
 
H.5322 as amended and S.27 SubA – These bills provide liability protection to food facilities (restaurants, food trucks, etc.) and “gleaners” (agricultural harvesters) that donate food to food banks and as well as directly to end users - individuals.  Prior to the passage of this act, food could only be donated to food banks or non-profits that distribute excess food.  The new law does not provide liability protection for gross negligence or intentional misconduct related to food safety.  Chapters 97 and 123 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5322aa.pdf  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0027A.pdf
 
H.5478 SubA and S.1021 - Provides that an open and obvious danger or defect is not a complete bar to recovery of damages in personal injury or property damage actions.  Chapters 185 and 256 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5478A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S1021.pdf
 
H.5590 SubA as amended – This new law creates a 10 year statute of limitations on any assessment of tax due and payable by the tax administrator for the sales and use tax, the estate tax, the personal income tax and business corporations tax.  Chapter 192 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5590Aaa.pdf
 
H.5769 as amended and S.253 SubA - These bills create a process, through the assistance of the Department of Labor and Training, that provides affected employees an opportunity to purchase the business that employs them but is in danger of being sold or going out of business.  The new laws apply to businesses subject to the federal Worker Adjustment and Retraining Notification Act (WARN Act).  Chapters 64 and 43 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5769aa.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0253A.pdf
 
H.5773 and S.259 – These bills, now law, preclude the Department of Business Regulation from pursuing any administrative action against a certified appraiser more than 5 years after the certified appraiser issues a certified appraisal report or more than 2 years after any judicial proceeding in which the appraisal provided testimony related to the appraisal assignment, whichever period expires later.  Chapters 65 and 45 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5773.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0259.pdf
 
H.5989 SubA and S.687 - Allow a contractor or builder to hire a qualified third-party assistant or state inspector to perform an inspection if a building official fails to perform an inspection within 48 hours after notification.  There must be notification to the building inspector of intent to do so at least 24 hours prior to hire. If the state inspector performs the inspection, the salary and operating expenses for services provided must be reimbursed to the state by the city or town receiving the services.  Chapters 81 and 76 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H5989A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0687A.pdf
 
H.6019 Sub A and S.698 SubA – These new laws render noncompetition agreements unenforceable against nonexempt employees, undergraduate or graduate students participating in an internship or a short-term employment, employees under 18 and “low wage” employees.  "Low-wage employee" means an employee whose average annual earnings, is not more than 250% of the federal poverty level.  Noncompetition agreements are still acceptable in certain cases of the sale of a business, trade secret situations, and for situations concerning the “taking” of clients or vendors. Chapters 204 and 264 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/HouseText19/H6019A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0698A.pdf
 
S.74 SubA – Places a 10 year statute of limitations on the Division of Taxation for the collection of sales and use tax, estate taxes and transfer taxes, personal income taxes and business corporation taxes.  If the collection process begins within the 10 year timeframe, that process can continue past 10 years.  The new law applies only to state tax liabilities that become final, due and payable after July 1, 2019.  The new law also provides exemptions for certain bankruptcy or receivership situations as well as meals and beverage tax collections and hotel tax collections.  Chapter 215 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0074A.pdf
 
S.98 SubA – Allows a municipality to issue a Special Events liquor license to allow any retail business or nonprofit organization to offer alcoholic beverages for sale as part of an admission to an event held on the business’s premises.  The special license is only good for one day; but the license can be applied for, and issued for, one day in each calendar month.  The entity must purchase the alcohol from a Class A licensee in the same municipality.  Chapter 156 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0098A.pdf
 
S.109 SubA – Any minority business enterprise currently certified by the U.S. Small Business Administration as an 8(a) firm governed by 13 C.F.R. part 124 shall be deemed to be certified by the department of administration as a women's business enterprise and shall only be required to submit evidence of federal certification of good standing. Chapter 37 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0109A.pdf
 
Senate Joint Resolution 194 SubA - Creates a 22 member commission to study and evaluate Rhode Island's electric and natural gas transmission and distribution system infrastructure, and report back to the General Assembly by March 1, 2020, and expire on June 30, 2020.  Chapter 388 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0194A.pdf
 
S.334 SubA as amended - Requires that any use of a premises for marijuana cultivation be disclosed in any real estate transaction.  Chapter 207 of the Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0334Aaa.pdf
 
S.620 – Manufacturers of malt beverages (breweries) are allowed to sell, from their premises, 24 twelve ounce bottles or cans, or 24 sixteen ounce bottles or cans.  Chapter 269 of the 2019 Public Laws. http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0620.pdf
 
Senate Resolution 711 - Senate Resolution requesting the Governor’s Workforce Board to work with the RI Department of Labor to develop a report on the             feasibility of expanding non-trade registered apprenticeship programs in Rhode Island.  Resolution 256 of the 2019 Public Laws.  http://webserver.rilin.state.ri.us/BillText/BillText19/SenateText19/S0711.pdf
 
 
 
 
 

​Legislature Completes 2019 Session – Almost
At 10:00 pm last Friday, the House and Senate finished most of their work for the 2019 legislative session.  The two sides did commit to come back sometime during the fall to address an 11th hour proposal to provide a contract to IGT to encourage them to physically stay in Rhode Island, but to also require Twin River casino to obtain most of the casino machines from IGT in return.
What happens next?  The hundreds of bills that were passed in the last two weeks will be transmitted to the Governor for her consideration.  In order to provide the Governor sufficient time to determine whether to: (1) sign a bill, (2) veto a bill, or (3) allow a bill to become law without her signature, the General Assembly will transmit bills periodically over the next couple weeks.  Under The Dome will publish a full list of new laws once that process is complete.
However, some of the highlights for the business community are as follows:
 
Budget – the FY2020 budget passed both the House and Senate without any broad-based taxes including the Medicaid assessment, the expansion of sales tax on business services, the increase in cell phone fees, scooping of various funds, the lobbyist tax, the tobacco taxes, and the hotel tax.  The budget maintains the phase-out of the car tax.  The budget did decrease the current fiscal year budget for the Real Jobs Development Program.  This budget was what some people referred to as a status quo budget, but it was a good budget for the business community in comparison to where it started in the process.
Marijuana – The General Assembly chose not to legalize adult use of marijuana.  It did expand the number of marijuana dispensaries from three to nine.  This issue will likely be before the legislature again next year.
Minimum Wage – For the first time in many years, the business community will not face an increase in the minimum wage as the Senate bill died in the House Labor Committee.
Plastic Bags and Straws – The business community, at the request of the Governor, negotiated a plastic bag ban bill with members of the environmental community for a period of three months.  An agreement was reached; but when the bill came to the Senate for a vote, the environmentalists convinced the Senate to change the bill to reflect items they wanted during the negotiations but did not achieve.  The plastic bag ban bill would have included expensive stitching requirements for re-useable bags and eliminated the flat rate charged for paper bags meant to assist businesses in recouping the cost of the alternative bag.  The bill died in the House.  The straw bill would have required customers to ask for a straw in order to get one in a food establishment or to proactively obtain one at a straw dispenser.  The bill also included a state preemption clause to ensure the state does not suffer from 39 different rules on straws. The environmental community fought to remove preemption and to remove the dispenser option, and criticized the Senate for making the changes.  The bill died in the House. 
Deceptive Trade Practices – The Attorney General fought hard to pass a bill that would allow him to file actions against any business for committing a deceptive trade practice – a term not well defined in the legislation.  The bill covered heavily regulated businesses such as health insurers, banks and mortgage companies, as well as entities with limited government regulations like retail stores or hair dressers as examples.  The business community was meeting with the Attorney General to try to work out a compromise when time ran out.  All parties agreed to continue talks over the fall.
Human Resource Issues – Bills addressing sexual harassment training in the workplace, pay equity, naloxone availability, employee bullying liability, employee transportation coverage, wage reporting by gender, race, age, etc., and elimination of the employment-at-will doctrine all died for this legislative year.
Beer – A Senate bill allowing beer manufacturers to increase sales to 24 – 12 oz. bottles or cans and 24 – 16 oz. bottles or cans passed both the Senate and the House and should be on its way to the Governor’s desk within the next couple weeks.  Prepare yourselves to go to your favorite brewery and load up!!!

​Last Week at the State House
The members of the House passed a $9.97 billion budget for FY2020 on a 64-9 vote on Saturday afternoon.  The process began Friday evening at 4:48 pm, recessing around 10:30 pm to return Saturday morning to finish the work.  While the debate turned contentious during the Friday evening hours, the members seemed to come back Saturday with a renewed spirit of cooperation.  A freshman Republican legislator – Representative Nardone – successfully argued the need for protection for school nurses to administer limited marijuana (non smoke, non vapor) to qualified patients in school settings.  A new amendment was prepared and passed by the body.  The funds for an experimental medical program, which received public attention, was rescinded and reallocated.  The legislature took funds out of their own line item budget on Saturday to fund a non-violence program (Nonviolence Institute) that had not made the cut from the House Finance Committee.  All of these changes resulted in a budget that passed with a veto-proof margin in the House.  The budget moves to the Senate this week.  The Senate could take up the bill Tuesday, or wait until all of the other legislative matters have been decided.  Historically, Senate leaderships have chosen both alternatives for the end of session process.
A few key changes were made to the budget:

• The House removed a $.26 GIS fee on cell phones.  When taken together with the previous changes in the 911 Fund structure, the result is a $.01 per month decrease in cell phone fees.
• A $300,000 line item for the Blackstone Valley Park Improvements Project was added
• A change in the human services program allows individuals to remain on public assistance for four consecutive years instead of two consecutive years
• The budget gave Commerce RI the ability to increase the tax credits to the Providence Fane proposal to $25 million (the cap is normally $15 million).  The Rebuild RI tax credits were also bumped from $200 million to $210 million; and $1 million was added to Commerce RI for site development.
• The House Finance Committee recommended that a number of economic development programs under Commerce RI sunset in 6 months.  The following programs were amended by a vote of the house members to extend the sunset dates to December 31, 2020:  RI Tax Incremental Financing Act; Tax Stabilization Incentive; First Wave Closing Fund; I95 Redevelopment Project Fund; Small Business Assistance Program; Stay Invested in RI Wavemaker; Main Street RI Streetscape Improvement Fund; Innovative Initiative; Industry Cluster Grants; High School, Collect Employer Partnerships; Air Service Development Fund; and RI New Qualified Jobs Incentive Act.
• Any new rules or regulations promulgated by the Department of Business Regulation or the Department of Health under the Medical Marijuana law is subject to approval by the General Assembly prior to enactment.  A number of representatives argued against the approval of 6 additional medical marijuana dispensaries saying it was harmful to small businesses that invested money only to now have the rules changed.  Representative Jacquard from Cranston rightfully pointed out that when the medical marijuana law was passed and the dispensaries were created, the General Assembly heard testimony that approximately 2,000 individuals were expected to apply for medical marijuana cards.  The three dispensaries are currently selling to about 18,000 Rhode Island cardholders, increasing the demand for dispensaries.

 
An effort was made by Representative Cassar from Barrington to increase the hotel tax by a half percent and to use the new found funds to create a program to combat homeless.  After a lengthy, emotional debate, the proposal failed on an 18-55 vote.  Representative Ajello from Providence offered an amendment to add one person to the I95 Commission in an effort to force a “super majority” vote on any development project.  The amendment failed 22-50.
 
This Week at the State House
This edition of Under the Dome will not reflect all of the major activity that will take place this week at the State House, because hearings will continue to be posted as the week unfolds.  To date, hearings are only posted for Monday and Tuesday.
The most controversial bill at the moment appears to be the City of Providence’s proposal to apply differing homestead exemptions in a tiered fashion, thus increasing property taxes on residential properties of higher value. (see H.6232 and S.985 below).  S.985 was passed by the Senate Housing and Municipal Government Committee last week.  H.6232 has yet to be scheduled for a hearing this week.
On Tuesday, at the Rise, the Senate Judiciary Committee will vote on S.74, An Act Relating to Taxation.  The bill enacts a ten year statute of limitations on any assessment of tax due or the start of any Division of Taxation collection action for tax due in the area of estate taxes, personal income taxes and corporate taxes.
 
The following bill was filed last week:
House Bill No. 6232  McKiernan, Williams, Almeida, Lima, Mendez, AN ACT RELATING TO TAXATION -- PROVIDENCE HOMESTEAD EXEMPTION (Authorizes the city of Providence to adopt by ordinance a homestead exemption for local taxation on owner-occupied residential real property.
 
House Bill No. 6242  Ucci, Kennedy, Craven, McKiernan, Place, AN ACT RELATING TO WATERS AND NAVIGATION - RHODE ISLAND INFRASTRUCTURE BANK (Expands the definition of “approved project” to include resiliency related infrastructure projects, and further prohibits the award of financial assistance for a water pollution abatement project.)
 
Senate Bill No. 985  Ciccone, Quezada, Bell, AN ACT RELATING TO TAXATION -- PROVIDENCE HOMESTEAD EXEMPTION (Enables the city of Providence to adopt a homestead tax exemption. The value of the $350,000 would receive a homestead exemption of 40% of value while the remaining value would receive a homestead exemption of 28% of value.)
 
Senate Bill No. 994  DiPalma, Seveney, Euer, Felag, AN ACT RELATING TO WATERS AND NAVIGATION - RHODE ISLAND INFRASTRUCTURE BANK (Expands the definition of “approved project” to include resiliency related infrastructure projects, and further prohibits the award of financial assistance for a water pollution abatement project.)
Senate Bill No. 997  Coyne, Lynch Prata, Seveney, DiPalma, Euer, AN ACT RELATING TO CRIMINAL OFFENSES -- EXPLOITATION OF ELDERS (Changes the definition of "elder person" for purposes of exploitation of elders from a person sixty-five (65) years of age or older to a person sixty (60) years of age or older.)
 
Senate Bill No. 1000  (By Request) Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS - MINIMUM WAGES (Provides that employers who permit employees to report to work shall pay the employee for not less than 3 hours wages if 3 hours work does not exist. Exceptions for agreed shifts of less than 3 hours and for employee students of a college.)
 
 
 
 
 
 

​Last Week at the State House
Last week the Senate Labor Committee amended S.174, a minimum wage bill, to require a $1.00 increase in the minimum wage starting January 1, 2020.  The new minimum wage would be $11.50 per hour.  The bill will be voted on by the full Senate Tuesday, June 18th .
 
The House Finance Committee passed a $9.9 billion budget Friday night at 11:50 pm.  The timing allows the full House to take up the bill – H 5151 SubA – this Friday, June 21st with a scheduled start time of 2:00 p.m. 
From a business point of view, this is a much better budget than the one unveiled by the Governor in January.  The House and Senate members heard the concerns raised by the business community and responded.  The following is a list of changes:

• The amended budget does not include the Medicaid assessment fee on employers.  It does require the Executive Office of Health and Human Services to develop a plan to identify Medicaid eligible individuals who have access to employer sponsored insurance.  The plan must include reports to the legislature outlining the number of Medicaid recipients with access to employer sponsored insurance, the number of plans that did not meet the cost effectiveness criteria for Rite Share and enrollment in premium assistance programs.  This issue, depending upon the results of the study, could resurface in future years.  Businesses may want to review their insurance plans and employee participation rates.
• The amended budget does not include an increase in the minimum wage
• It does not include the Governor’s proposed expansion of the sales tax to business services (landscaping, cleaning, extermination etc.), to interior design services, to lobbyist services, to gun and ammunition products, nor to non-profits related to taxable services.  The budget did include the sales tax on digital downloads.
• The licensing fee for loan originators does increase from $100 to $400
• No increase in the cigarette tax, cigar tax or to vaping products was included
• The proposed budget does not include an increase in the hotel tax
• The increase in the beverage container tax from $.04 to $.08 on each case of beverage containers sold by a beverage wholesaler to a retailer or consumer did survive and is in the amended budget; as is the increase in tax on “hard-to-dispose” materials such as lubricating oils ($.05 per quart increase), antifreeze ($.10 per gallon increase), organic solvents ($.025 per gallon increase), and tires ($.50 per tire increase).
• The car tax phase out remains intact.  The Governor had proposed to slow down the phase out
• The amended budget does delay the Northern RI Education Center site for one year.  The delay, according to the House fiscal staff, is due to a delay in securing a site for the Center; therefore the 1.0 FTE and $100,000 was removed from the FY2020 budget
• There is a net $.25 per month increase in wireless telephone fees.  The amended budget creates a restricted receipt account for 911 fees to be used for training and equipment.  The 911 monthly surcharge on wireless lines reduces from $1 to $.50 for each line.  But a new monthly surcharge is assessed on phone lines for first responder services of $.75 for each wireless line.
• Rhode Islanders will finally be required to obtain new license plates, but the cost is lower than originally expected - $8.00.
• No adult recreational marijuana legalization is included in the budget.  The language does increase the number of medical marijuana dispensaries from three to nine.  Testimony was given earlier that most medical marijuana states have a dispensary for every 3,000 patients.  Rhode Island’s three dispensaries currently service 12,000 patients each.
• The amended budget includes a new Article that creates an Opioid Stewardship Act.  The Opioid Stewardship Fund will collect $5 million from manufacturers or distributors of opioids (a formula for the share is in Article 13 SubA); and use that money for opioid treatment programs, recovery and prevention programs and related services. 
• The amended budget increases the Small Business Assistance Program.  The Governor included $250,000 in her budget; the amended budget increases the fund by $500,000.
• The prekindergarten program is expanded under the amended budget, but does not go as far as the “universal pre-k” proposal put forth by the Governor.  The program is funded to the tune of $14.9 million which funds the existing 60 classrooms and also covers the addition of two additional students per existing location as well as ten new classroom of twenty students each and an extension of the school day for 100 Head Start students.
• The budget does not include an expansion of the college tuition program
• Lastly, the ReBuild RI program under Commerce RI received some “tweaking.”  The Governor had requested authorization for an increase in subsidies from $150 million to $250 million.  The amended budget gives Commerce RI the ability to go to $200 million, but the sales-tax exemption for building material must count toward the cap – that is new.

 
This Week at the State House
On Wednesday, the House Small Business Committee is scheduled to vote on S. 253, An Act Relating to Labor and Labor Relations – Local Ownership.  This bill states that when an employer, covered by the Worker Adjustment and Retraining Notification Act (WARN Act), provides advance notice of a plant closing or mass layoff as required by law, the director of the department of labor and training, must give the employer’s workers notice of their right to bid to purchase the business and must provide information on how to form a workers’ cooperative in order to purchase the company if they so choose.
The full House will take up the budget (H.5151 SubA) Friday at 2:00 pm.
 
The following bill was filed last week:
House Bill No. 6214   Noret, Solomon, Jackson, Serodio, Amore, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES DISCLOSURES (Requires that any use of a premises for marijuana cultivation be disclosed in any real estate transaction.)
 
House Bill No. 6215  Jackson, McNamara, Costantino, Lima, McLaughlin, AN ACT RELATING TO HEALTH AND SAFETY -- STATE BUILDING CODE (Authorizes building inspectors to affix their signatures to permits that pertain to work they inspect.)

​Last Week at the State House
 
The plastic bags debate seemed to take on a life of its own last week.  Governor Raimondo brought together members of the business community with members of the environmental advocacy groups to work out a compromise plastic bag ban bill.  The task force met over the course of three months.  In the end, a bill was presented to the Governor that included: (1) a ban on non-reusable plastic bags; (2) a mandatory charge of five cents per bag for an alternative, heavier plastic bag or a paper bag, the money remaining with the retailer to help cover the cost of the more expensive bag alternative; (3) a state-wide preemption clause to ensure all communities were enforcing consistent rules to avoid confusion for businesses.  Two bills reflecting this long debated compromise were introduced at the request of DEM.  That’s when everything started to fall apart.  At the senate hearing on S.410, members of the environmental community, who participated in the Governor’s taskforce, pushed hard to add a stitching requirement to the alternative re-usable plastic bag alternative, to eliminate the per bag fee, and to change the preemption language.  The Senate Environment Committee added the “stitching” language (which further increases the cost of providing alternative bags) but kept the preemption language as is. The House passed its version H.5671 by removing the five cent per bag fee and keeping the preemption language in place (the stitching language was not added).  It is unclear how the two competing bills will fair in the end.
 
This Week at the State House
This week the House Finance Committee will vote out their version of the FY2020 budget.  Both the House Speaker Mattiello and the Senate President Ruggerio are warning that this will not be an easy budget.  House Finance Chairman Abney was quoted in GoLocal as saying the “candy store is not open.”  The House Finance Committee had hoped to meet Tuesday, but as of Sunday night, the meeting had not been publicly posted (meetings require 48 hour public posting at this time – that requirement will be waived in the last days of session).
Rhode Island’s population is about 1.057 million.  According to the Department of Labor website, approximately 438,000 individuals are working in the Rhode Island private sector.  Approximately 61,400 people work for state, local and federal governments.  While those numbers do not include transient farm workers, it still means roughly 47% of Rhode Islanders are working.  At the last revenue Estimating Conference, members referenced the fact that about 320,000-340,000 Rhode Islanders are participating in public assistance programs during the year (30-32%). 
The latest economic forecast released declared Rhode Island’s economy to have shown sluggish growth in 2018, expanding .6% ranking 47th out of 50 states (Rhode Island Public Expenditure Council Report).  The gap is expected to widen in the next quarter.  Rhode Island lost 2,800 jobs between December, 2018 and March, 2019.
This is the difficult backdrop legislators face as they try to present a balanced budget this week.  
Tuesday Set To Be a Difficult Day
If you plan to be at the State House Tuesday, get there early and bring earplugs.  The Senate Judiciary Committee has scheduled a vote on reproductive rights which will bring out many people, so prepare accordingly.
The Senate Finance Committee plans to vote on S.134, An Act Relating to Taxation – Withholding of Tax, which lowers the non-resident withholding requirement for a corporation that sells real estate to be consistent with the 7% corporate income tax rate.  The Chamber has supported this change for a few years.  The committee will also take testimony on S.278, An Act Relating to Taxation.  S.278 makes it clear that a tax payment received by midnight on the date in which the tax becomes due and payable shall be considered “on time.” The bill also reduces the amount of penalty for taxes unpaid from a maximum of 21% to 10%.  This is another pro-business, pro-taxpayer bill.
 
Senate Labor Committee Considers Minimum Wage Increase
On Wednesday, the Senate Labor Committee is scheduled to vote on S.174.  The bill increases the minimum wage effective January 2, 2020, to $11.50 per hour and effective January 1, 2021, to $12.50 per hour.  The Committee will also take testimony on S.908, An Act Relating to Labor and Labor Relations – Establishing the “Commuter Transportation Benefits Act.”  The bill requires businesses with 20 or more employees to establish a pre-tax transportation benefits program; or provide transit passes to employees; or create a free transportation program to the worksite for employees.  The act would become effective January 1, 2020, if passed.
 
The following bill was filed last week:
House Bill No. 6184  Caldwell, Speakman, Mendez, Vella-Wilkinson, Ackerman, AN ACT RELATING TO INSURANCE -- LIFE INSURANCE POLICIES AND RESERVES (Prohibits insurer from denying application/exclude/limit coverage under any life insurance policy based solely on prescription to carry or possess naloxone.)

​Last Week at the State House
 
Last week saw a couple of business unfriendly bills pass.  The Senate Labor Committee took testimony on S.172, An Act Relating to Labor and Labor Relations – Equal Pay Data Collection and Reporting and then passed it on a 5-1 vote.  The bill requires employers with 100 employees or more to file an annual report with the Department of Labor and Training providing employee compensation information broken down by age, gender, race, ethnicity, job category and occupation title.  The Chamber provided testimony against passage of the bill.  It is expected to be voted on by the members of the Senate this week.  The Senate Labor Committee also passed S.509 on a 6-0 vote.  S.509 requires employers to pay employees the same wage for “comparable work.”  While meant to address gender pay inequality, this bill extends this wage payment system to religion, sexual orientation, gender identity, age and ancestral origin.  If an employer hires a female age 35 and pays her more than a 41 year old male because they want more diversity in the workplace, a lawsuit could be triggered based on age discrimination.  It is also hard to determine “what is comparable work?”  Both bills passed the Senate last year and died in the House. 
 
The Senate Environment and Agriculture Committee amended and passed the plastic bag ban bill and held the plastic straw bill for further study.  S.410 was created by a stakeholder group comprised of business and environmental representatives.  As was stated in last week’s Under the Dome, the Governor brought both sides together to work out a compromise which was reflected in S.410.  The bill banned retailers from providing single-use plastic bags and required them to charge a customer five cents for a paper bag should the customer require a bag.  A few exceptions existed such as the very important restaurant wine bottle take-home bag. Every retailer was to be under the same rules to help with compliance issues.  Certain members of the environmental community changed their position on S.410 calling for an elimination of the five cent per paper bag fee – siting a harm to the poorer communities.  Interestingly, the same environmental groups advocated for a ten cent fee in the stakeholder meetings.  It was the business community that suggested the fee be lowered to five cents to cover the additional cost of the paper bag.  For the business participants in the stakeholder process, the last minute amendment was very disappointing. 
 
This Week at the State House
 
Committees are voting on bills fast and furiously, signaling an approaching end to the 2013 legislative session.  At the time this newsletter was written, the House Finance Committee has only posted a meeting for Tuesday, leaving the Thursday normal meeting time as a remote possibility for the unveiling of the House budget, although the following week would be more likely. 
The Senate Judiciary Committee is meeting on Tuesday to vote on a number of bills.  S.479, An Act Relating to Businesses and Professions – Real Estate Sales Disclosures, requires owners of real estate to provide and annual energy cost estimate to potential buyers.  The estimate must be prepared by an “approved energy rater” registered with the Rhode Island Office of Energy Resources.  S.607, also applies to real estate disclosures and requires sellers state if the property is in a flood zone, if the seller has flood insurance (and if so, the amount of the annual premium), and details surrounding the historical frequency of water damage to the property and the amount of repairs necessary.  Lastly, the committee plans to vote on S.493, a deceptive trade practice bill submitted by the Attorney General.  This bill would place all businesses – even heavily regulated industries - under the Deceptive Trade Practice.  Any business practice not specifically stated in a state regulation could be used to bring a case against the business.  The goal of the bill is to allow the AG to participate in multi-state class action lawsuits; but it also places heavily regulated entities in a trap between competing state agencies.
 
The Senate Commerce Committee is set to pass both the Senate and House versions of the cash requirement bills.  S.889 and H.5116 require retailers to accept cash as payment for goods or services.  Exemptions are included for online internet sales.
 
On Thursday, the House Environment Committee is scheduled to vote on H.5671, the plastic bag ban bill.  To date, the bill reflects the language adopted by the Governor’s stakeholder group.  The Committee could post an amended version next week to mirror the Senate bill (S.410 above), but the committee may also adopt the compromise bill in its original form.  The Committee will also take testimony on H.6126, An Act Relating to Food and Drugs – Disposable Food Service Containers.  The bill prohibits most food establishments from preparing, selling, processing or providing food or beverages in or on a disposable food service container that is composed in whole or in part of polystyrene foam.
 
The following resolution was read on the on House floor May 23, 2019.  Congratulations to NRICC President/CEO on the House Resolution
House Resolution No. 6144   Newberry, Mattiello, Shekarchi, Filippi, Ackerman, HOUSE RESOLUTION HONORING AND RECOGNIZING JOHN GREGORY FOR HIS SERVICE TO THE PEOPLE AND BUSINESSES IN THE STATE OF RHODE ISLAND
 
The following bill was filed last week:
House Bill No. 6159  Nardone, Place, Quattrocchi, Filippi, Roberts, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MECHANICAL TRADES (Provides for a limited license to be issued to HVAC service personnel to work on electrical wiring, equipment and components when servicing HVAC systems.)

​This Week at the State House
 
Voting is happening at a faster pace as we head into what could be the final month of legislative session. 
The Senate Commerce Committee will be voting on the two bills of interest Tuesday at the Rise. Senate Resolution 194 calls for a 22 member commission to study the state’s electric and natural gas distribution infrastructure. The commission must report back to the legislature by March 1, 2020 with its findings. S.253 addresses businesses covered under the Worker Adjustment and Retraining Notification Act (WARN Act).  The Department of Labor and Training, upon notification that a covered business is going to close, would be required to notify employees of their ability to place a bid to purchase the closing business and to assist with creating a workers’ cooperative should employees wish to buy the business.
 
The Senate Judiciary Committee will be taking testimony on Tuesday concerning S.598, An Act Relating to Labor and Labor Relations – Fair Employment Practices.  The bill forbids an employer from requiring an employee to execute a nondisclosure agreement or a non-disparagement agreement regarding alleged violations of civil rights or criminal conduct as a condition of employment.  This would greatly reduce the ability to enter into settlement agreements with employees to resolve conflicts.
 
Senate Labor has scheduled a hearing for Wednesday at the Rise in the Senate Lounge.  One of the bills being heard is S.172, An Act Relating to Labor and Labor Relations – Equal Pay Data Collection and Reporting.  The bill requires employers with 100 employees or more to file an annual report with the Department of Labor and Training providing compensation information broken down by age, gender, race, ethnicity, job category and occupation title. 
 
The Senate Education Committee plans to vote on the education package introduced on May 8th.  This Wednesday, the committee will vote on: S.863 which requires the commissioner of education to develop statewide academic standards and curriculum frameworks for the core subjects of mathematics, English language arts, science and technology, history and social studies, world languages, and the arts; S.864 a bill that directs the council on elementary and secondary education to provide professional support and assistance to local education agencies; S.865 expands the duties of principals over school personnel, facilities and budgets; and S.866 which establishes testing requirements for initial certification of new teachers starting July 1, 2021.
 
The Senate Environment and Agriculture Committee is set to vote on a plastic bag ban bill and a plastic straw bill.  S.410 was created by a stakeholder group comprised of business and environmental representatives.  The Governor brought both sides together to work out a compromise which is reflected in S.410.  The bill bans retailers from providing single-use plastic bags and requires them to charge a customer five cents for a paper bag should the customer require a bag.  A few exceptions exist such as the very important restaurant wine bottle take-home bag. Every retailer is under the same rules which should help with compliance issues.  If passed, the bill would go into effect one year from the date of enactment.  S.202 SubA will ban facilities from giving out straws unless the customer requests one, or if the customer selects one from a dispenser.
 
 
The following bill was filed last week:
House Bill No. 6126   Bennett, Canario, Noret, Vella-Wilkinson, Jacquard, AN ACT RELATING TO FOOD AND DRUGS -- DISPOSABLE FOOD SERVICE CONTAINERS (Prohibits a covered establishment from preparing, selling, processing or providing food or beverages in or on a disposable food service container that is composed in whole or in part of polystyrene foam.)
 
House Bill No. 6134   Williams, Fellela, Alzate, Millea, McKiernan, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION (Provides employer pays any excess damages for an injured minor/clarifies liability of employer for violation of continuation of health care benefits for injured employee caused by employer/repeals obsolete/inapplicable workers' compensation laws.)

House Resolution No. 6135   Shanley, HOUSE RESOLUTION REINSTATING THE LIFE OF AND EXTENDING THE REPORTING AND EXPIRATION DATES OF THE SPECIAL LEGISLATIVE COMMISSION KNOWN AS THE "RHODE ISLAND ONLINE DATA TRANSPARENCY AND PRIVACY PROTECTION COMMISSION" (Reinstates the life and extends the reporting and expiration dates of the "Rhode Island Online Data Transparency and Privacy Protection Commission" from February 5, 2019, to February 5, 2020, and would expire on May 5, 2020.)
 
Senate Bill No. 888  Ciccone, Lombardo, Lombardi, AN ACT RELATING TO FINANCIAL INSTITUTIONS - SMALL LOAN LENDERS (Allows small loan lenders to charge fees on loans up to $5,000 provided the fees are disclosed and agreed to in written instrument signed by borrower and licensee.)
 
Senate Bill No. 889  Conley, Gallo, Seveney, Lombardi, Felag, AN ACT RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - DECEPTIVE TRADE PRACTICES (Requires retail establishments to accept cash in payment for goods and services excluding online purchases.)
 
Senate Bill No. 891  Sosnowski, Euer, Coyne, Valverde, Conley, AN ACT RELATING TO MOTOR AND OTHER VEHICLES - IDLING (Removes the word diesel in regard to idling of engines and would pertain to idling of all engines.)
 
Senate Bill No. 908  Lawson, Ciccone, Metts, Lombardi, Quezada, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- ESTABLISHING THE "COMMUTER TRANSPORTATION BENEFITS ACT" (Establishes the commuter transportation benefit act. Employers with twenty (20) or more employees would provide a pre-tax transportation fringe benefit program or provide transportation to the employees.)
 
Senate Bill No. 909   Ciccone, Lombardo, Gallo, Lombardi, Nesselbush, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION (Provides employer pays any excess damages for an injured minor/clarifies liability of employer for violation of continuation of health care benefits for injured employee caused by employer/repeals obsolete/inapplicable workers' compensation laws.)
 
Senate Bill No. 910   Pearson, McCaffrey, Goodwin, Gallo, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY--BENEFITS (Eliminates requirement to pay attorney fees from employment security (unemployment) administrative fund.)