Advocacy in Action: June 1, 2026

Last Week at the State House
 
Friday night, May 29th, the House Finance Committee passed its version of the State’s FY2027 budget.  The $15.2 billion plan raises additional revenue, increases expenditures in a variety of categories and asks the voters for approval to bond $600 million for projects.  This represents a 6.2% increase over the current year’s fiscal budget.  Many of the proposals were also included in the Governor’s budget submitted in January of this year.  The full House will take up the budget on the floor Friday, June 5th at 3:00 p.m.
 
Revenues Raised:

• Millionaire Tax:  New personal income tax on individuals, pass-through-entities and bankruptcy estates making more than $1 million (to be adjusted by inflation annually).  The Committee proposal phases in the new tax at 1% (6.99%) starting tax year January 1, 2027; 2% (7.99%) starting January, 1, 2028 and 3% (8.99%) starting January 1, 2029.  The new tax is estimated to raise $21.6 million in the first phase of the tax.

 

• Trust Income Tax:  New income tax on taxable income of an estate or trust at 1% of RI taxable income over $36,427.  Today, non-grantor trusts and non-bankruptcy estates are taxed at 5.99% for all taxable income above $10,450.  This would increase the tax once the $36,427 threshold is reached.

 

• Corporate Tax Decoupling:  The budget includes decoupling from the Qualified Business Stock Gains and the business interest limitation that was included in HR1.  This is estimated to raise $1 million in revenues.

 

• Gas Tax:  The House budget did not include the Governor’s proposal to decrease the gas tax by two cents per gallon.  The budget does increase RIPTA’s share of the gas tax revenues from 15% to 25%.  That money currently goes to the highway transportation fund.

 

• Tax Amnesty Program:  The budget proposes a 75-day amnesty period ending February 15, 2027.  The Division of Taxation is barred from collecting any penalties that may be applicable and cannot seek civil or criminal prosecution of any taxpayer for which amnesty has been granted.  Interest due on the delinquent tax amount will also be reduced by 25%.  The provision does require amounts collected to be accounted for separately in order to determine the “success” of the program.

 
Expenditures of Note:

• E-Permitting:  This provision gives $1.2 million to support uniform construction, land use planning, fire safety, and zoning permitting for RI municipalities.  It is anticipated cities and towns will use this money for software licenses and integrating of licensing and permitting within CRMC, Department of Transportation and Department of Environment.

 

• Executive Office of Commerce:  The budget includes $1 million for the Innovation Initiative, and $1 million for RI Streetscape Improvement Fund, but did not include an additional $1 million for Site Readiness (the House believes $1 million remains in the fund from the currently fiscal year) or $250,000 for RI’s Innovation Opportunities.  The Innovation Opportunities was meant to strengthen collaboration among current and future participants in RI’s economy.

 

• Car Tax Reimbursement: The House Finance Committee fully funded the car tax repeal to municipalities.  This is estimated to cost $4.8 million.

 

• Office of Inspector General:  The budget includes $1.3 million for the new Office of the Inspector General.  It is an independent department with the Inspector General appointed by the Governor with advice and consent of the Senate.  Once passed, the advisory commission (attorney general, general treasurer, secretary of state, executive director of the ethics commission and the president of the Association of Inspectors General) would meet and submit three qualified candidates to the Governor for consideration.  The Governor would choose and place the nomination before the Senate.  Once confirmed, the Inspector General would serve a term of five years, with a two-term limitation.  The office would have investigative powers, including subpoena powers, and would investigate executive branch agencies and departments.  It would not have authority over the legislative branch or the judicial branch.

 

• Electric Heat Pump Grants:  The Office of Energy Resources will continue to operate a grant program to assist homeowners and small to mid-size business owners with the purchase and installation of high-efficiency electric heat pumps, with an emphasis on families in environmental justice communities, minority-owned businesses, and community organizations that cannot afford the technology.

 

• Economic Programs Extended:  The budget includes the extension of a number of programs about to sunset – Rebuild RI Tax Credit, RI Tax Increment Financing, Tax Stabilization Incentive, First Wave Closing Fund, I-195 Redevelopment Project Fund, Stay Invested in RI Wavemaker Fellowships, Main Street RI Streetscape Improvement Fund, Innovation Initiative (not Opportunity), and RI new Qualified Jobs Incentive Act.

 
This Week at the State House
 
As the General Assembly approaches what is likely to be the final two weeks of session, votes and amendments may post during the week.  To date, legislation of interest falls on Tuesday, June 2nd; however, the House or Senate could post more bills for Wednesday through Friday as the process moves forward.  The General Assembly is expected to be in session June 2nd – June 5th this week and June 8th – 12th the following week.  This schedule is subject to change.
  
Tuesday, June 2nd
 
Warehouse Worker Rights and Family Caregivers Support
 
The House Labor Committee will vote on H.7364 - Warehouse Worker Protection Act in a SubA form.  The amendment places some guardrails on employer requirements.  Employers must notify employees two days in advance of any modifications made to quotas – no timeline was in the original bill.  The SubA gives employers 21 days to respond to an employee’s request for personal speed data information and states that an employee may only ask for such information once in a 90-day period, unless a disciplinary action is pending.  The SubA can be viewed at: https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/H7364A.pdf
 
The House Labor Committee will hold a hearing on H.8578 – Family Caregivers Support Act, a new bill filed May 22, 2026.  The bill declares it unlawful for an employer to fail to hire someone solely due to family caregiver responsibilities.  It prohibits employers from denying a worker’s request for accommodations to address family caregiving responsibilities.  Businesses must provide flexible scheduling, adjusted hours or remote work unless they can prove it is an “undue hardship” to operations.  Employers with less than 25 employees have an affirmative defense, if they have a “reasonable” phased in compliance plan.  The bill gives the RI Commission for Human Rights the ability to investigate and adjudicate violations and can order back pay, reinstatement and compensation for lost benefits and attorneys’ fees.  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8578.pdf
Testimony on H.8578 may be submitted to [email protected]
 
Termination of Gas Line Extensions
The Senate Committee on Environment and Agriculture will vote on a resolution to terminate any future natural gas line extensions.  Senate Resolution 2354, cites the Executive Climate Change Coordinating Council’s 2025 Climate Action Strategy as the driving force for this action.  The EC4’s Strategy calls for a reduction in the use of gas for home heating in order to meet the State's 2030, 2040, and 2050 emissions reduction requirements.  The resolution states, “Connecting new customers to the gas distribution system locks in customer subsidization of new infrastructure whose intended life extends beyond the 2050 net zero emissions requirements.”  While resolutions do not carry the weight of law, they are meant to express a legislative body’s official opinion.  They do not require the Governor’s signature.  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2354.pdf
 
Delinquent Tax Penalty Relief
 
The Senate Finance Committee will vote on three bills Tuesday:
 
S.2847 – State Tax Officials, caps the interest rate for all delinquent taxes at 12% and limits the authority to audit taxpayers to 3 years from the date of filing.  In cases of fraud, the timeframe increases to 7 years from the date of filing.  In no case could the Division of Taxation go beyond ten years from the filing deadline.  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2847.pdf
 
S.2453 and H.7568 are identical bills that allow municipalities to waive up to $500 in interest on overdue taxes for commercial properties.  Since 2003, cities and towns have had the authority to waive interest on residential properties.  S.2453 and H.7568 add commercial properties that fall into the same category: (1) The property subject to the overdue payment is the property of the taxpayer and has been for the five (5) years immediately preceding the tax payment which is overdue; (2) The request for a waiver of interest is in writing, signed and dated by the taxpayer; and (3) The taxpayer has made timely payments of taxes to the city or town for the five (5) years immediately preceding the tax payment, which is overdue. 
https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2453.pdf
https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7568.pdf
 
AI in the Workplace

The Senate Labor Committee will vote on S.2499 – Artificial Intelligence Use and Fair Employment Practices, which creates a comprehensive statutory framework to address and regulate the use of artificial intelligence in the workplace.  The legislation: (1) Sets rules for “inputs and outputs” generated by AI when used to make significant decisions about workers, (2) Addresses the collection of data through electronic monitoring and time-tracking tools by banning such use unless the collection purpose meets specific needs set in the legislation (3) Covers “work process information” related to an individual’s productivity. This 11-page bill can be viewed at https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2499.pdf