This Week at the State House
 
Lt. Governor McKee to Speak
 
The House Committee on Small Business will hear from Lieutenant Governor Dan McKee on the current challenges of small businesses in Rhode Island.  The meeting will be televised on Capitol Television, which can be seen on Cox Channels 15, and 61, in high definition on Cox Channel 1061, on Full Channel on Channel 15 and on Channel 34 by Verizon subscribers.
It will also be live streamed at  http://rilegislature.gov/CapTV/Pages/default.aspx.
 
House Labor Hears Minimum Wage and Premium Pay Bills – Alert
 
On Wednesday, February 24th at 6:00 p.m. the House Labor Committee will take written and verbal testimony on H.5130, An Act Relating to Labor and Labor Relations – Minimum Wages.  This bill is identical to the original version of S.1.   It proposes to increase the minimum wage to $12.25 on October 1, 2021, $13.00 on October 1, 2022, $14.00 on October 1, 2023 and $15.00 on October 1, 2024.  The Chamber strongly encourages you to contact your State Representative and to submit testimony Wednesday if this bill affects your business.
 
H.5403, An Act Relating to Holidays and Days of Special Observance – work on Holidays and Sundays, will also be heard in committee. Current law allows the Director of Labor and Training to exempt business from premium pay rules upon application.  H.5403 places new criteria to qualify for the exemption:  1) paying 200% of the state minimum wage, 2) no use of temporary employment agencies to staff the business 3) provides employer-funded health care benefits, 4) provides employer-funded retirement options to employees, 5) has no federal labor law violations within the last 10 years, 6) has no environmental violations within the last 10 years, and 7) has no settlements of alleged violations of federal or environmental laws in the last 10 years.  Rhode Island’s current premium pay requirement makes the state and outlier in the country as all others – except Massachusetts - have eliminated the requirement.  Massachusetts reduced premium pay to 1.3 times the wage in 2021, 1.2 times the wage in 2022, 1.1 times the wage in 2023 and elimination of premium pay in 2024.  These reductions coincide with the steps Massachusetts is taking to increase the minimum wage to $15.00.
 
Both verbal and written testimony are welcome. Individuals interested in providing verbal testimony, Click Here  Requests for verbal testimony must be submitted via the link, by 11:00 AM Wednesday, February 24, 2021.  Written testimony should be submitted to: [email protected]  Indicate your name, bill number, and viewpoint (for/against/neither) at top of message. In order for materials to be distributed to members and posted to the General Assembly website prior to the hearing, written testimony must be submitted no later than 4:00 pm. All testimony received after deadline will be sent to committee members and posted to the website -- within 24 hours. It is recommended that testimony is submitted as a PDF file.


Senate Labor to Hear Overtime, Wage Violation and Lead Entity Bills
 
Under current state law, employees who work more than 40 hours a week must be paid one and a half times their regular hourly pay rate for each hour over the 40 hours worked.  There is an exemption for those employed in executive, administrative or professional positions paid on a salary basis of $200 or more a week.  S.138, An Act Relating to Labor and Labor Relations – Overtime Wages, increases the base salary for the exemption to $1,036 a week ($53,872 annually); and beginning January 1, 2024 would increase it to a salary basis not less than the 40th percentile of weekly earning of full-time nonhourly workers in the Northeast Census Region in the second quarter of the year preceding the update as published by the Federal Bureau of Labor Statistics.  A quick look at the US Bureau of Labor Statistics for the second quarter of 2017 (the latest figures available on the website) appears to place the Northeast second quarter 40th percentile wage at $1,096.00.  Under S.138, a salaried employee making up to $53,872 a year would be entitled to overtime pay for hours works over 40 hours a week.
 
S.139, An Act Relating to Labor and Labor Relations – Payment of Wages, creates a definition for “lead entities” and for a “labor contractor;” and places civil liability on those entities for violation of labor laws.  Under S.139, a “labor contractor” is an employer or person, regardless of form, that provides a “lead entity” “with employees, independent contractors, subcontractors or workers of any kind to perform labor or services.”  A “lead entity” means an employer or person, regardless of form, “that obtains or is provided one or more worker(s) to perform labor or services related to the lead entity’s business activities, operations, or purposes from a labor contractor.”  The legislation goes on to state that the lead entity and the labor contractor share all civil liability for workers supplied to the labor contractor for violations of labor laws.
 
Another bill scheduled to be heard is S.195, An Act Relating to Labor and Labor Relations – Payment of Wages.  This bill increases penalties for employers that fail to pay employees the proper amount, or who misclassify employees as independent contractors.  If the nonpayment of wages is $1500 or less, the violation would remain a misdemeanor punishable by a fine of $400 for each offense or imprisonment of up to a year, which is consistent with current law.  If the nonpayment is $1500 or more, the violation would be a felony.  The violation would also be a felony if the offense is a second or subsequent offense or if the employer is guilty of a knowing violation.  The penalties, under S.195, raise to:
 
            1.  Wage violation between $1500 and $5000, or a first of offense of a knowing violation – imprisonment of up to 3 years, and a fine of twice the value of the wages or $10,000 whichever is greater, or both
 
            2.  Wage violation greater than $5000 of a second or subsequent offense of a knowing violation – imprisonment up to 5 years and a fine of up to three times the value of the wages or $20,000 whichever is greater, or both
 
Written testimony and can be submitted to the committee by emailing it to: [email protected]  Written Testimony must be submitted prior to 2:00 PM on Wednesday, February 24, 2021, in order for it to be provided to the members of the committee at the hearing and to be included in the meeting records.  Members of the public can request to provide verbal testimony to the committee through the following link: VERBAL TESTIMONY
Requests to provide verbal testimony must be submitted by 4:00 PM on Tuesday,
February 23, 2021.
 
GHG Emission Reduction Mandates – Senate Committee Vote, House Hearing - Alert
 
The Senate Committee on Environment and Agriculture is scheduled to vote Wednesday at 4:00 pm.  On S.78, An Act Relating to State Affairs and Government – 2021 Act on Climate is on the agenda.  S0078.pdf (state.ri.us)   The House Committee on Environment and Natural Resources will take testimony on H.5445 on Friday, February 26th at 3:00 pm. H.5445 and S.78 are identical bills.  These bills speed up the reduction of greenhouse gas emission targets currently in law, but they do much more.  Under current law, Rhode Island set a goal of 10% reduction over 1990 levels by 2020, a 45% reduction over 1990 levels by 2035, and 80% over 1990 levels by 2050.  The Climate Change Coordinating Council (EC4) is charged with developing plans to meet those targets.  The state has met the 2020 target.  S.78 and H.5445 change the targets to 45% reduction over 1990 levels by 2030, 80% reduction over 1990 levels by 2040 and net zero emissions by 2050.
 
The more challenging change is in the enforcement of the reduction targets.  S.78 and H.5445 allow the EC4 to require agencies to promulgate rules necessary to reach the targets.  There is no language in the bills to provide guidelines for what can or cannot be adopted as part of a rule.  DEM, for example, could be forced to require every business to install a geothermal heat pump for heating purposes, or to require all individuals to ride a bus to work instead of driving a vehicle.  The bills also give any person the right to file a lawsuit to force an agency to take action.  These provisions take away the legislative debate on environmental policy issues, and can essentially take away consideration of economic factors in agency rulemaking.  If the emission target is not reached, the lawsuit can force government action regardless of the cost.
 
The Chamber sent sixteen questions to RI DEM concerning what a transition might look like from fossil fuel use to renewable energy.  For example, 89% of the state’s electricity is currently generated by natural gas.  Rhode Island also has the fourth highest electricity rates in the country.  How does the state transition to 100% renewable electricity and at what cost?  If (as S.78 and H.5445 would indirectly require) all businesses and residents must switch to electric heat and electric vehicles by 2030 or 2040, how will the additional electricity demand be met and at what cost?  According to the State’s consultant, a “deep residential energy retrofit” would cost between $50,000 and $100,000 per unit.  No cost analysis was provided for a commercial or industrial facility.
 
Massachusetts has similar language in law to that proposed by S.78 and H.5445.  Last week legislation was introduced in Massachusetts to raise $10 billion to pay for necessary actions to try to meet the mandated greenhouse gas emission targets in their state law.   Part of the $10 billion, includes $500 million generated from a carbon tax on electricity, transportation, heating and industry.  The money would go to construct more renewable energy capacity, local aid for climate-related projects, clean energy workforce training and direct payments to lower-income households. 
 
The House Committee on Environment and Natural Resources meeting will be televised on Capitol Television, which can be seen on Cox Channels 15, and 61, in high definition on Cox Channel 1061, on Full Channel on Channel 15 and on Channel 34 by Verizon subscribers.  It will also be live streamed at http://rilegislature.gov/CapTV/Pages/default.aspx.  Individuals interested in providing verbal testimony, send your name, phone number, bill number and position on legislation to: [email protected]  Requests for verbal testimony must be submitted via the link, by 11:00 AM on Thursday, February 25, 2021.  Written testimony should be submitted to: [email protected]   Indicate your name, bill number, and viewpoint (for/against/neither) at top of message. In order for materials to be distributed to members and posted to the General Assembly website prior to the hearing, written testimony must be submitted no later 1:00 pm Friday.
 
 
The following new bills have been filed:
 
House Bill No. 5603  Cardillo, Fellela, Costantino, Batista, Perez, AN ACT RELATING TO ALCOHOLIC BEVERAGES - RETAIL LICENSES (Allows holders of a Class P license to purchase alcoholic beverages from either a retail or wholesale establishment in the state of Rhode Island.)  H5603.pdf (state.ri.us)
 
House Bill No. 5619  Noret, Casimiro, Vella-Wilkinson, Alzate, Solomon, Craven, Amore, Casey, Lima, Lombardi, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT OF WOMEN AND CHILDREN (Requires children who seek a special limited work permit to successfully complete a training program which shall address workers' rights, workplace health and safety, and workers' compensation, to be established and funded by the DLT.)  H5619.pdf (state.ri.us)
 
Senate Resolution No. 230  Mendes, Acosta, Calkin, Mack, Bell, Kallman, Cano, Anderson, Quezada, Valverde, SENATE RESOLUTION CREATING A SPECIAL LEGISLATIVE COMMISSION TO STUDY AND ASSESS THE IMPLEMENTATION OF MEDICARE-FOR-ALL SINGLE PAYER PROGRAM IN RHODE ISLAND  S0230.pdf (state.ri.us)
 
Senate Bill No. 233  Bell, Calkin, Mack, Anderson, Goldin, Quezada, Lawson, Mendes, Acosta, DiMario, AN ACT RELATING TO HEALTH AND SAFETY -- COMPREHENSIVE HEALTH INSURANCE PROGRAM (Establishes a universal, comprehensive, affordable single-payer health care insurance program which shall be referred to as, "the Rhode Island Comprehensive Health Insurance Program" (RICHIP))  S0233.pdf (state.ri.us)
 
Senate Bill No. 262  Lombardo, Lombardi, Archambault, DiPalma, Bell, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- DECEPTIVE TRADE PRACTICES (Amends the deceptive trade practices chapter to clarify the law's exemptions and enhances the attorney general's authority to seek civil penalties for violations of the law.)  S0262.pdf (state.ri.us)
 
Senate Bill No. 264  Coyne, Sosnowski, Valverde, Burke, Seveney, Euer, 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.)  S0264.pdf (state.ri.us)
 
Senate Bill No. 270  Goldin, Ruggerio, Gallo, Coyne, Goodwin, Valverde, Mendes, DiMario, Mack, Miller, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Comprehensively addresses wage discrimination, based on sex by expanding employee protections and the scope of the remedies available to employees who have experienced wage discrimination.)  S0270.pdf (state.ri.us)
 
Senate Bill No. 272  Goldin, Goodwin, Murray, Coyne, Valverde, Mendes, DiMario, Mack, Miller, Quezada, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES ACT (Changes the definition of employee and employer for purposes of the fair employment practices act, while expanding personal liability for violations.)  S0272.pdf (state.ri.us)
 
Senate Bill No. 279  Quezada, Picard, Calkin, Cano, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- FILING OF ASSUMED NAME (Requires a person or persons who transact business under a trade name to register with a municipality, provides more extensive information when filing and to notify the municipality when the trade name is changed or discontinued.)  S0279.pdf (state.ri.us)
 
Senate Bill No. 294  Ciccone, McCaffrey, Ruggerio, Goodwin, AN ACT RELATING TO TAXATION -- TAX AMNESTY (Creates a ninety (90) day tax amnesty program in the state fiscal year 2021-2022)  S0294.pdf (state.ri.us)
 
Senate Bill No. 321  Euer, Cano, Murray, DiMario, Valverde, AN ACT RELATING TO WATERS AND NAVIGATION -- STATE AFFAIRS AND GOVERNMENT -- HEALTH AND SAFETY (Updates and modernize the Department of Environmental Management’s ability to enforce environmental laws, and more specifically modifies practices regarding a Notice of Violation.)  S0321.pdf (state.ri.us)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

​This Week at the State House
 
The General Assembly is on February break, also called “Winter Recess.”  No hearings are scheduled for this week.  However, legislators and staff are busy drafting and submitting bills, as the deadline for introductions of bills was extended to February 23, 2021.  We can expect hundreds of bills to be released in the coming weeks.  The RI House of Representatives Task Force for COVID-19 Vaccine will be receiving a briefing on Wednesday, February 17th at 4:00 pm from Dr. Alexander-Scott.  The meeting will be live streamed on Capitol TV at http://www.rilegislature.gov/CapTV/Pages/default.aspx
 
 
Last Week at the State House
 
Senate Passes Minimum Wage Bill
 
The Senate passed (30-6) S.1aa (as amended), An Act Relating to Labor and Labor Relations – Minimum Wages.  Rhode Island’s current minimum wage, $11.50 per hour, went into effect October 1, 2020.  S.1aa proposes to increase the minimum wage to $12.25 on January 1, 2022, $13.00 on January 1, 2023, $14.00 on January 1, 2024 and $15.00 on January 1, 2025.  The bill was originally written to take effect October 1, 2021, but a floor amendment was offered by Senator Roger Picard (Woonsocket) to delay the increase to 2022.  The amendment passed 22-12.  To see how our Senator voted, go to:   The State of Rhode Island General Assembly (rilegislature.gov)   Senator Calkin (Warwick) attempted to amend the legislation to increase the tip wage and to require employers to pay hazard pay to employees who work during an emergency.  Both amendments failed.  S.1aa is now in the House Labor Committee.


 
House Labor Studies COVID Liability Bill and Labor Bills
 
On Thursday, February 10th the House Labor Committee met to take testimony on a number of bills. H.5264, An Act Relating to Labor and Labor Relations – Workers Compensation – Occupational Diseases, addresses questions of employer liability related to the COVID-19 virus.  H.5265, An Act Relating to Labor and Labor Relations – Payment of Wages, assesses new penalties on employers that fail to maintain an employee’s health care benefits while that employee is out of work under TCI (the employee must continue to pay any required premium co-share); and for failing to retain the employee’s job or provide a similar job to that employee once he/she returns to work.  H.5266, An Act Relating to Labor and Labor Relations – Unlawful Employment Practices, allows employees to sue employers and individual employees for “directly or indirectly” committing any act considered to be an unfair employment practice under Rhode Island law.  All three bills were held for further study.
 
 
Staff Changes in Executive and Legislative Branches
It’s getting harder to keep up with the various staff changes taking place at the State House.  Last week RI Department of Labor and Training Director, Scott Jensen announced that he will step down February 22nd after six years at DLT.  The Governor’s Policy Director Nell Abernathy and Senior Deputy Chief of Staff, Kevin Gallagher also announced their departure.  Governor Raimondo’s Deputy Chief of Staff, Nicole Verdi, is headed to the Senate as Chief Legal Counsel.  Senate President Ruggerio also named his new Chief of Staff – Jake Bisaillon, - after Stephen Iannazzi left to take a job in the private sector.  As was announced a few weeks ago, Ray Simone is Speaker Shekarchi’s Chief of Staff, while Nicole McCarty is Chief Legal Counsel.  Danica Iacoi is now Chief Legal Counsel to Majority Leader Blazejewski.
 
 
The following new bills have been filed:
 
House Bill No. 5437   Edwards, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- ELECTRICIANS (Allows 288 hours of trade school training to qualify for the journeyperson "B" electrical exam. Increases the period of indentured apprenticeship with the department of labor and training and a licensed electrician master to 4 years.)  H5437.pdf (state.ri.us)
 
House Bill No. 5441  Speakman, Casey, Ruggiero, Donovan, Kislak, Morales, AN ACT RELATING TO INSURANCE -- INDIVIDUAL HEALTH INSURANCE COVERAGE (Requires individual health insurers, large group health insurers and small employer health insurers to provide coverage for ten (10) categories of essential health benefits listed in the act.)  H5441.pdf (state.ri.us)
 
House Bill No. 5445  Carson, Cortvriend, Blazejewski, Kazarian, Ruggiero, Donovan, Speakman, Knight, McEntee, Alzate, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - 2021 ACT ON CLIMATE (Establishes a statewide greenhouse gas emission reduction mandate.)  H5445.pdf (state.ri.us)
 
House Bill No. 5448   McGaw, Felix, Kislak, Alzate, Potter, Lombardi, McEntee, Tanzi, Ruggiero, AN ACT RELATING TO HUMAN SERVICES -- MEDICAID EMPLOYER ASSESSMENT (Creates a Medicaid employees assessment and would require all for profit employers with more than 300 employees to compensate the state 10% of each of their employees' wages, capped of $1500, who are enrolled in Medicaid.)  H5448.pdf (state.ri.us)
 
House Bill No. 5473  Williams, Messier, Vella-Wilkinson, Slater, Alzate, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION BENEFITS (Requires employees to prove non-intoxication at time of injury/death after employer shows positive test for intoxication at time of injury/death with recovery of overpayments/minor may recover treble damages from employers.)  H5473.pdf (state.ri.us)
 
House Bill No. 5509  Tobon, Caldwell, Baginski, Alzate, Edwards, Lima, Barros, Corvese, Amore, Craven, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- UNFAIR SALES PRACTICES (Prohibits the sale for profit of consumer generated Internet data by a social media platform without the consent of and compensation paid to the consumer.)  H5509.pdf (state.ri.us)
 
House Bill No. 5526  Speakman, Knight, AN ACT RELATING TO TAXATION - PROPERTY SUBJECT TO TAXATION (Permits manufacturing or commercial concerns to apply to commerce corporation for exemption or stabilization of taxes when moving to another municipality if could reasonably and efficiently relocate outside state and that relocation would be advantageous.)  H5526.pdf (state.ri.us)
 
House Bill No. 5583  Perez, Vella-Wilkinson, Williams, Cardillo, Shanley
ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- PARENTAL AND FAMILY MEDICAL LEAVE (Grants unpaid pregnancy leave to part-time workers, would clarify their access to unpaid sick leave during their pregnancy, and would provide additional protections for pregnant workers who work in the medical field.) H5583.pdf (state.ri.us)


House Bill No. 5584  Perez, Vella-Wilkinson, Williams, Shanley, AN ACT RELATING TO LABOR AND LABOR RELATIONS - UNLAWFUL EMPLOYMENT PRACTICES (Prohibits an employer from inquiring about a prospective employee wage and salary history before an offer of employment with compensation has been negotiated.)  H5584.pdf (state.ri.us)
 
House Bill No. 5585  Amore, Lombardi, Potter, Giraldo, Alzate, Morales, AN ACT RELATING TO HOLIDAYS AND DAYS OF SPECIAL OBSERVANCE -- WORK ON HOLIDAYS AND SUNDAYS (Repeals § 5-3-7 of the general laws which gives the director of the department of labor and training the authority to exempt certain classes of employees from receiving overtime pay for Sunday and holiday work.)  H5585.pdf (state.ri.us)
 
Senate Bill No. 154  Sosnowski, Coyne, Miller, McCaffrey, Gallo, Valverde, Euer, DiPalma, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2021 (Establishes a fee on companies that sell fossil fuels in Rhode Island and establishes a fund to disburse the collected funds.)  S0154.pdf (state.ri.us)
 
Senate Bill No. 173  Anderson, Calkin, Valverde, Ciccone, Mendes, Ruggerio, Lombardi, Goodwin, Miller, Coyne, AN ACT RELATING TO MOTOR AND OTHER VEHICLES - PARKING FACILITIES AND PRIVILEGES (Requires parking lots to designate parking spaces for electric vehicles/installation of charging stations for new existing public/private parking lots with fines for parking violations/compliance. Effective 7/1/21.)  S0173.pdf (state.ri.us)
 
Senate Bill No. 178  Felag, AN ACT RELATING TO TAXATION - PROPERTY SUBJECT TO TAXATION (Permits manufacturing or commercial concerns to apply to commerce corporation for exemption or stabilization of taxes when moving to another municipality if could reasonably and efficiently relocate outside state and that relocation would be advantageous.)  S0178.pdf (state.ri.us)
 
Senate Bill No. 183  Euer, Ruggerio, McCaffrey, Goodwin, Cano, Mack, Kallman, Lombardo, Valverde, DiMario, AN ACT RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT (Imposes a moratorium on non-essential evictions/mortgage foreclosures during a state of emergency declared by the governor relating to residential property and establishes an eviction diversion program to resolve landlord-tenant eviction disputes.)  S0183.pdf (state.ri.us)
 
Senate Bill No. 189  DiMario, Euer, Murray, Lawson, Valverde, Pearson, Mendes, Mack, Goldin, Anderson, 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.)  S0189.pdf (state.ri.us)
 
Senate Bill No. 195  McCaffrey, Goodwin, Ruggerio, Murray, Kallman, Ciccone, Lombardo, Valverde, DiMario, DiPalma, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES (Increases the criminal penalties for wage theft and employee misclassification.)  S0195.pdf (state.ri.us)
 
Senate Bill No. 196  Ciccone, Acosta, Calkin, Goodwin, Lawson, Anderson, Valverde, Murray, Bell, DiPalma, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- DIGNITY AT WORK ACT (Establishes the Dignity at Work Act, to provide workers with more protection from bullying and harassment in the workplace.)  S0196.pdf (state.ri.us)
 
Senate Bill No. 206  Sosnowski, Coyne, Seveney, Felag, Gallo, AN ACT RELATING TO FISH AND WILDLIFE - COMMERCIAL FISHERIES (Permits dockside sale of fish by commercial fishing license holders.)  S0206.pdf (state.ri.us)
 
Senate Bill No. 225  Bell, Mendes, AN ACT RELATING TO TAXATION -- DEFINITION OF CORPORATE NET INCOME (Repeals a state corporate income tax deduction to allowable income for federal tax purposes for investment property held for at least seven (7) years.)  S0225.pdf (state.ri.us)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
This Week at the State House
 
Senate Scheduled to Vote on Minimum Wage Bill Wednesday
Wednesday at 4:00 pm, the full Senate is scheduled to vote on S.1, An Act Relating to Labor and Labor Relations – Minimum Wages.  Rhode Island’s current minimum wage, $11.50 per hour, went into effect on October 1, 2020.  S.1 proposes to increase the minimum wage to $12.25 on October 1, 2021, $13.00 on October 1, 2022, $14.00 on October 1, 2023, and $15.00 on October 1, 2024.  ​


Governor Raimondo, in her State of the State Address, suggested that the Senate and House pass legislation creating a “path to $15” before she vacates the Governor’s office. 
 
The Chamber testified at the Senator Labor Committee expressing concerns about raising the minimum wage, especially while the State’s business community continues to struggle to remain viable during the pandemic.  The Senate Labor Committee did consider an amendment to delay the first proposed increase until January 1, 2022, and the sponsor of the bill seemed to be amenable to the delay, but the amendment died 6-5.
 
This is the time to make your voice heard.  Please send an email to your State Senator and State Representative now (if you have not already done so).  Let them know how the change in minimum wage and the October 1, 2021, date will affect your business specifically.  Many legislators are not business owners so they may not understand how the wage and date impacts a business.  Please be respectful – speak from the heart – give facts.  Thank you for your help!
 
 
Bill Treats Marijuana Smoke Same as Tobacco
 
Today, the House Health and Human Services Committee is scheduled to hear testimony on H.5246, An Act Relating to Health and Safety.  The bill states that any law currently on the books to protect individuals from second-hand tobacco smoke in a public place or in the workplace, would also apply to marijuana smoke, regardless of how the smoke is generated.  Written testimony should be submitted to [email protected]  For those who would prefer the option of providing verbal testimony, please send an email to [email protected] with the following information: Bill # 5246, For/Against, Your Name and Phone number (to be reached for your testimony) Affiliation: (if any) *Deadline to request verbal testimony is Tuesday, February 9, 2021 at 11 a.m.
 
 
House Labor Schedules COVID Liability Bill and Labor Bills
 
On Thursday, February 10, 2021 at 6:00 p.m. the House Labor Committee will meet to take testimony on a number of bills including a COVID liability bill and workplace relations bills.
H.5264, An Act Relating to Labor and Labor Relations – Workers Compensation – Occupational Diseases, addresses questions of liability related to the COVID-19 virus.  The first part of the bill creates a presumption that workers on the front lines – such as hospital workers, first responders and nursing home workers – who become infected by the virus, contracted the virus on the job, thus covering them under the employers’ workers compensation insurance.  This is not new.  Workers’ compensation has been covering these individuals unless there are extenuating circumstances.  H.5264 goes on to provide the presumption to “essential workers.”  The Governor has declared a number of industries “essential” during the pandemic, including grocery stores, convenience stores, heating fuel delivery and others.  Should H.5264 pass, these employees would also be covered by workers’ compensation for COVID related illnesses or related disabilities.  Employers have a right to rebut the presumption.
 
H.5265, An Act Relating to Labor and Labor Relations – Payment of Wages, assesses new penalties on employers that fail to maintain an employee’s health care benefits while that employee is out of work under TCI (the employee must continue to pay any required premium co-share); and for failing to retain the employee’s job or provide a similar job to that employee once he/she returns to work.  The bill also assesses the same penalty against an employer who fails to pay the proper premium pay under Rhode Island law.  Rhode Island is the last state in the country that requires employers to pay time and a half to employees who work Sundays or holidays as part of their normal 40 hour work week.  The penalties include: private right of action, payment to the employee equal to the unpaid benefits or wages, liquidated damages equal to two times the amount of unpaid benefits and wages, attorney fees, and protection from employer retaliation.
 
H.5266, An Act Relating to Labor and Labor Relations – Unlawful Employment Practices, allows employees to sue employers and individual employees for “directly or indirectly” committing any act considered to be an unfair employment practice under Rhode Island law.  Unlawful practices under RIGL 28-5-7, include failing to hire someone based on race, color, gender, religion, sexual orientation.  It is also an unfair practice to discharge an employee, or discriminate against an employee using compensation, privileges or tenure.  H.5266 allows individuals to be sued, and the legislation is retroactive to include all pending claims and cases.
 
Written testimony for any of these bills should be submitted to [email protected]  If you wish to provide verbal testimony, please send an email to [email protected] with the following information: Bill # 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 Wednesday, February 10, 2021 at 11 a.m.
 
 
The following new bills have been filed:
 
House Bill No. 5227  Alzate, Amore, Blazejewski, Williams, Speakman, Giraldo, Slater, Kazarian, Potter, Diaz, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Adds one new income tax bracket for purposes of state income taxation.)  H5227.pdf (state.ri.us)
 
House Bill No. 5229  Amore, Alzate, Tanzi, Kislak, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Creates a new income tax bracket of 6.99% on taxable income over five hundred thousand dollars. Any tax collected on this income deposited into restricted receipt account and expended on education for grades kindergarten through twelfth grade.)  H5229.pdf (state.ri.us)
 
House Bill No. 5231  Shekarchi, Edwards, Noret, McEntee, Solomon, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Provides technical amendments to the existing Pass-through Entity Election Tax statute to allow tax practitioners and the Rhode Island Division of Taxation to comply with the provisions in practice.)  H5231.pdf (state.ri.us)
 
House Bill No. 5246  Diaz, McNamara, Slater, Vella-Wilkinson, Perez, McLaughlin, Biah, Tobon, 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.)  H5246.pdf (state.ri.us)
 
House Bill No. 5261  Donovan, Williams, Alzate, Blazejewski, Speakman, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Comprehensively addresses wage discrimination, based on sex by expanding employee protections and the scope of the remedies available to employees who have experienced wage discrimination.)  H5261.pdf (state.ri.us)
 
House Bill No. 5264  Williams, Batista, Biah, Slater, Felix, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION - OCCUPATIONAL DISEASES (Classifies as an occupational disease any disability or quarantine resulting from COVID-19 or other viral infection classified by an executive order during a declared state of emergency, subject to certain requirements.)  H5264.pdf (state.ri.us)
 
House Bill No. 5265  Edwards, 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.)  H5265.pdf (state.ri.us)
 
House Bill No. 5266  Edwards, 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.)  H5266.pdf (state.ri.us)
 
House Bill No. 5280  McEntee, Cortvriend, Bennett, Hawkins, Carson, Speakman, Knight, Caldwell, AN ACT RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT RECYCLING ACT OF 2021 (Creates a refundable ten cent ($0.10) deposit for non-reusable beverage containers. A four cents ($0.04) handling fee would be paid by distributors.)  H5280.pdf (state.ri.us)
House Bill No. 5348  Filippi, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- THE RHODE ISLAND LIMITED-LIABILITY COMPANY ACT (Permits a member or members of a limited-liability company to avoid dissolution by buying the units owned by the other member or members seeking dissolution.)  H5348.pdf (state.ri.us)
 
House Bill No. 5358  McEntee, Cortvriend, Bennett, Knight, Carson, Blazejewski, Speakman, Phillips, Donovan, Craven, 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.)  H5358.pdf (state.ri.us)
 
House Bill No. 5364  Amore, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Extends the sales tax exemption of a manufacturer who processes raw materials into finished goods.)  H5364.pdf (state.ri.us)
 
House Bill No. 5403  Amore, Alzate, Fogarty, Lombardi, Messier, AN ACT RELATING TO HOLIDAYS AND DAYS OF SPECIAL OBSERVANCE -- WORK ON HOLIDAYS AND SUNDAYS (Requires an individual employer to meet certain criteria in order to qualify for class exemption from the increased pay requirement for work on holidays and Sundays.)  H5403.pdf (state.ri.us)
 
Senate Bill No. 143  Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS --MINIMUM WAGES (Provides increases to the minimum wage in 2021, 2022, and 2023 and implements a permanent formula to provide annual adjustments to the minimum wage thereafter.)  S0143.pdf (state.ri.us)
 
 
 
 
 
 
 
 
 
 
 
 

​This Week at the State House
 
Senate Labor Committee to Hear Minimum Wage Bills - URGENT
 
On Wednesday, February 3rd at 4:00 pm, the Senate Labor Committee will take testimony on S.1, S.77, S.136 and S.137.  All of these bills relate to proposed changes in minimum wage.  Members of the public wishing to testify may submit written testimony by email to [email protected]  Testimony submitted prior February 3rd at 2:00 pm, 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.  If you prefer to testify verbally, please send an email to [email protected]  and state in the email the bill number, whether you are For/Against the bill, your name and phone number (to be reached for your testimony), and your affiliation: (if any).  Requests to testify verbally must be submitted by Tuesday, February 2nd at 4:00 pm.  Should you wish to testify in writing or verbally, the best information you can provide to the committee is how the change in the wage will specifically affect your business.  If your business pays premium pay under Rhode Island law, please mention it in your testimony and highlight that Rhode Island is the only state that still requires premium pay to be given to employees who work Sundays and holidays as a normal part of their 40 hour work week.
 
Rhode Island’s current minimum wage, $11.50 per hour, went into effect October 1, 2020. 
 
S.1 proposes to increase the minimum wage to $12.25 on October 1, 2021, $13.00 on October 1, 2022, $14.00 on October 1, 2023 and $15.00 on October 1, 2024. 


S.77 proposes to increase the minimum wage, starting January 1, 2022, based on the average increase in CPI over the previous four years.  The intent of the bill may be to make that adjustment each year as the language states that in no event will the minimum wage decrease if the average CPI decreases.
 
S.136 creates an 11 member commission to study the minimum wage issue and report recommendations back to the Senate by May 4, 2021.
 
S.137 establishes a system of tax credits for businesses based on the amount paid to employees.  Upon passage, an employer who pays the $11.50 minimum wage would receive a tax credit of $1 for each hour paid to those minimum wage employees.  If the minimum wage increases to $13, then the employer paying the $13 minimum wage would qualify for a tax credit of $2 per hour paid to each minimum wage employee.  At a minimum wage of $14, the employer could claim a tax credit of $3 per hour.
 
As background for this discussion, Rhode Island currently has the 14th highest minimum wage in the country.  (Although New York, at $12.50 for most of the state, is complicated, as NYC has its own rules for different employers.)
 
Massachusetts raised its minimum wage to $13.50 as of January 1, 2021 and will statutorily go to $14.25 January 1, 2022 and to $15.00 January 1, 2023.  Massachusetts currently has the third highest minimum wage requirement in the country – following the District of Columbia ($15.00) and Washington state ($13.69). Connecticut is currently at $12.00 per hour and is set to go to $13.00 August 1, 2021; $14.00 July 1, 2022; and $15.00 June 1, 2023.  Connecticut is tied for 9th highest minimum wage in the country.
 
President Biden has called for an increase in the federal minimum wage which is $7.25 per hour.  His plan suggests an increase to $9.50 upon passage, followed by increases each year thereafter reaching $15 an hour in four years.  Eighteen states have a $7.25 per hour minimum wage.
 
Public Places Stock Epinephrine Syringes on Site
 
On Tuesday at 6:00 pm, the House Health and Human Services Committee will take testimony on H.5080 which requires public places capable of holding 300 or more people to have epinephrine and syringes on site as well as trained employees on site to administer the shot if needed.  A “public place” includes, but is not limited to, the following:  banks; bars; educational facilities; health care facilities; laundromats; public transportation facilities; reception areas; restaurants; retail food production and marketing establishments; retail service establishments; retail stores; shopping malls; sports arenas; government offices; theaters; and waiting rooms. A private residence is not a "public place" unless it is used as a child care, adult daycare, or health care facility.  Written testimony should be submitted to [email protected] . For those who would prefer the option of providing verbal testimony, please send an email to [email protected]  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 Tuesday, February 2, 2021 at 11 a.m.
 
Greenhouse Gas Emission Reduction Mandates
 
The Senate Committee on Environment and Agriculture is meeting Wednesday at 4:00 pm.  S.78, An Act Relating to State Affairs and Government – 2021 Act on Climate is on the agenda.  S0078.pdf (state.ri.us)  This bill speeds up the reduction of greenhouse gas emission targets currently in law.  Under current law, Rhode Island set a goal of 10% reduction over 1990 levels by 2020, a 45% reduction over 1990 levels by 2035, and 80% over 1990 levels by 2050.  The Climate Change Coordinating Council (EC4) is charged with developing plans to meet those targets.  The state has met the 2020 target.  S.78 changes the targets to 45% reduction over 1990 levels by 2030, 80% reduction over 1990 levels by 2040 and net zero emissions by 2050.  The more challenging change is in the enforcement of the reduction targets.  S.78 allows the EC4 to require agencies to promulgate rules necessary to reach the target.  There is no language in statute to provide guidelines for what can or cannot be adopted as part of a rule.  DEM, for example, could be forced to require every business to install a geothermal heat pump for heating purposes, or to require all individuals to ride a bus to work instead of driving a vehicle.  S.78 also gives any person the right to file a lawsuit to force an agency to take action.  These provisions take away the legislative debate on environmental policy issues, and can take away economic factors even in agency rulemaking.  If the emission target is not reached, the lawsuit can force government action regardless of the cost.
 
 
Last Week At the State House
 
Revenues Up, But Numbers Are “Soft”
 
Last week the Senate Finance Committee received a briefing from the Department of Revenue.  The December, 2020 revenues show an increase of $58 million over anticipated revenues:  $31 million more in personal income tax, $13.6 million from sales and use tax, $6.1 million from business corporate income tax and $4.2 million from department receipts.  However, before the committee got too excited, Paul Dion, Chief, Office of Revenue Analysis, explained the surplus is a “soft surplus” that has not captured future events like the State’s “pause” or a change in federal corporate tax treatment.
 
The sales and use tax continues to outperform expectations.  It appears to be a result of Rhode Islanders shifting purchases from brick and mortar stores to online sales.  State law requires certain online providers to charge sales tax to customers in the state.  With fewer people traveling to others states to shop, the sales and use tax has bumped up.  The state also saw an increase in sales and use tax following the release of federal stimulus checks to the public.  While automotive sales were very volatile during 2020, a big surge of sales occurred shortly after the stimulus checks arrived.
 
The Department of Revenue sounded off a cautionary note over the business corporate income tax.  Congress passed the CARES Act providing PPP loans to businesses.  Later, Congress made those PPP loans forgivable and allowed business to deduct the expenses against taxable income even if the PPP money was used to pay those expenses.  Under normal circumstances, loans forgiven are considered taxable income.  In Rhode Island, $1.904 billion in loans were made to 17,875 businesses.  $192.9 million went to tax-exempt non-profit entities and $1.711 billion went to for-profit entities.    Mr. Dion said, “If all $1.711 billion of the PPP loan are forgiven” and $1.711 billion of that money was used to pay expenses that are normally deductible against taxable income, “the impact on state revenues for FY2021 would be in the 10s of millions of dollars…and could result in loss carryforwards in future years.”  The other corporate tax issue to watch is whether businesses made a final quarterly payment in December instead of January – if so, then the jump of $6.1 million could smooth out resulting in a normal collection season for corporate income revenue.
 
Other tax changes that will affect Rhode Island’s income tax numbers this year include the federal change to allow an “above the line” deduction for charitable contributions up to $300 per individual or $600 for joint filers.  Dion expects this impact to be less than $10 million loss in revenues.  It is also unclear at this point how the various grants to businesses will be treated.  Dion believes they appear to be taxable but the department has not received final word yet.  Grants include those made under the Restore RI program, Hart and RI On Pause.
           
 
 
The following new bills have been filed:
 
House Bill No. 5113  Bennett, AN ACT RELATING TO HEALTH AND SAFETY -- MINIATURE ALCOHOLIC BEVERAGE CONTAINER ACT OF 2021 (Creates a refundable fifty cent ($0.50) deposit for miniature alcoholic beverage containers, often referred to as "nips.")
 
House Bill No. 5120  Bennett, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2020 (Imposes carbon tax on fossil fuel sellers for use in climate resilience/renewable energy/energy efficiency/climate adaption programs effective upon 3 states adoption covered by RGGI.)
 
House Bill No. 5130  Bennett, Solomon, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Gradually increases the minimum wage from eleven dollars and fifty cents ($11.50) per hour to fifteen dollars ($15.00) per hour, over a four (4) year period.)
 
House Bill No. 5131  Bennett, AN ACT RELATING TO FOOD AND DRUGS -- SINGLE-USE PLASTIC STRAWS (Prohibits a food service establishment from providing a consumer with a single-use plastic straw, unless the consumer requests such a straw.)
 
House Bill No. 5138  Bennett, 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. 5213  Phillips, Caldwell, Noret, O'Brien, Serpa, Hawkins, Lima, AN ACT RELATING TO TAXATION -- STATE TAX OFFICIALS (Changes the rate of interest for underpayments of tax to prime rate plus six percent (6%). Also limits the assessment of interest to four (4) calendar years prior to the date on which notice of the delinquent payment is sent.)
 
House Bill No. 5218  Morales, Alzate, Ranglin-Vassell, Vella-Wilkinson, Ajello, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Requires employers to pay "hazard pay" to employees involved in providing essential services during a declared public health emergency.)
 
Senate Bill No. 64  Seveney, Sosnowski, Coyne, DiPalma, Euer, AN ACT RELATING TO MOTOR AND OTHER VEHICLES - AUTOMATED TRAFFIC SPEED ENFORCEMENT SYSTEM (Authorizes the use of automated traffic-speed camera-enforcement systems on all state and local roads within the state, not just in school zones)
 
Senate Bill No. 77  Raptakis, Lombardi, Paolino, Lombardo, Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Increases the minimum wage commencing January 1, 2022, in accordance with an amount equal to the total percentage increase in the consumer Price Index for all Urban Consumers (CPI-U) for the Northeast Region for the four (4) previous fiscal years.)


Senate Bill No. 78  Euer, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - 2021 ACT ON CLIMATE (Establishes a statewide greenhouse gas emission reduction mandate.)
 
Senate Bill No. 97  Calkin, Anderson, Bell, Acosta, Valverde, Quezada, AN ACT RELATING TO TAXATION (Establishes a surtax on the business corporation tax for publicly traded corporations subject to SEC disclosure and reporting requirements, if corporation's ratio of compensation for its CEO to median worker is equal to or greater than 100 to 1.)
 
Senate Bill No. 99  Algiere, de la Cruz, Rogers, Paolino, Morgan, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Reduces the minimum corporate tax from four hundred dollars ($400) to two hundred fifty dollars ($250) for the year beginning on January 1, 2021, and would abolish the minimum tax for tax years beginning on or after January 1, 2022.)
 
Senate Bill No. 101  Calkin, Anderson, Mack, Mendes, Bell, Quezada, AN ACT RELATING TO HUMAN SERVICES -- HEALTH CARE FOR FAMILIES (Creates the "Medicaid Employer Assessment".)
 
Senate Bill No. 105  Euer, McCaffrey, Sosnowski, Kallman, Valverde, Mack, Quezada, Cano, Coyne, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- ENVIRONMENTAL JUSTICE ACT (Requires the department of environmental management to create environmental justice areas.)
 
Senate Bill No. 106  Calkin, Anderson, Acosta, Mack, Mendes, Bell, Quezada, AN ACT RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT RECYCLING ACT OF 2021 (Creates a refundable four cent ($0.04) deposit for non-reusable beverage containers. A ten cent ($0.10) handling fee would be paid by distributors.)
 
Senate Resolution No. 136  Raptakis, Lombardi, Paolino, Lombardo, Ciccone, SENATE RESOLUTION CREATING A SPECIAL LEGISLATIVE COMMISSION TO STUDY AND REVIEW RHODE ISLAND'S MINIMUM WAGE (Creates an 11 member commission whose purpose it would be to study Rhode Island’s minimum wage, and who would report back to the Senate no later than May 4, 2021, and whose life would expire on January 4, 2022.)


Senate Bill No. 137  Raptakis, Lombardi, Paolino, Lombardo, Ciccone, AN ACT RELATING TO TAXATION -- TAX CREDIT FOR WAGE PAYMENTS (Provides tax credit for businesses as minimum wage bench marks are reached or adopted in the future.)
 
Senate Bill No. 138  Calkin, Mack, Anderson, Mendes, Bell, Valverde, Murray, Quezada, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- OVERTIME WAGES (Exempts certain executive, administrative, and professional employees from overtime pay if their weekly wages exceed one thousand thirty-six dollars ($1,036), an increase from the current two hundred dollars ($200).)
 
Senate Bill No. 139  Calkin, Mack, Anderson, Mendes, Bell, Quezada, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES (Defines and recognizes the existence and potential liability of lead entities concerning the payment of wages.)