​An Update from the State House
For those who have been around the State House for a long time, the legislative activity level has made March feel like a political May.  Many of the House committees completed hearings on all of the original inventory of bills filed before the bill filing deadline.  The House Finance Committee completed hearings on all of the Governor’s budget articles, leaving only hearings on the Departments’ budgets for future days.  Of course a number of bills have been filed since the deadline (see below for the myriad of bills filed last week), but still both the House and Senate appear to be ahead of their historical schedules.  What that means, is anyone’s guess.
 
Naxolone in Public Places
Last week, the House Committee on Health, Education and Welfare listened to proponents and opponents discuss a bill to require “public places,” capable of holding 100 or more people, to keep on site “functional” naloxone boxes with a supply of the drug and one person trained to administer the drug.  The bill does include a “Good Samaritan” clause to attempt to protect entities and individuals who provide or administer the drug.  However, some outstanding issues remain.

• The cost of the product is roughly $20-$40 per box.  Federal law requires each box to have an expiration date of one year after the date of the prescription, so businesses would be required to keep track of that expiration date or run afoul of the law (“functional” box) as well as potential lawsuits since a court could consider an expired box as gross negligence.
• The drug has to be injected into the thigh or upper arm; or sprayed into the nostril. Employees may feel uncomfortable performing these tasks.
• And the other concern for businesses is that individuals under the influence of an overdose many times become violent as they come back to consciousness.  When in the field, first responders are sometimes asked to hold the victim down as the drug is administered to avoid getting hurt themselves.  If an employee or employees administer the drug and get hurt in the process, it is unclear whether will the employer’s workers’ compensation be required to cover the injury.

 
Senate Labor Takes Up Employer Assessment
On Tuesday, March 26th at the Rise (approximately 4:30 p.m.) in room 313, the Senate Finance Committee will take testimony on Article 16 of the Governor’s budget.  Section 4 of this article is the employer assessment for each employee – full or part time – that utilizes Medicaid for insurance.  It applies to companies with 300 or more employees.  An employer in this category would be assessed 10% of the employee’s wages, up to $1500, a year to be paid quarterly.  If this is of concern to your business, please contact your Senator and/or attend the hearing.
House Labor to Hear Pay Equity Bill
On Wednesday, March 27th, at the Rise (approximately 4:30 p.m.) in room 203, the House Labor Committee will take testimony on H. 5659, what has been referred to as the “pay equity” bill. 
This bill, while well intentioned, sets a legal trap for businesses. It dramatically changes the work world by requiring employers to pay employees the same - not only for “equal work” but for “comparable work.” 
Under H.5659, if a wage differential exists, and the employer does not have a seniority or merit system written policy, the burden to prove that the differential is legal shifts to the employer.  That burden can only be overcome by proving the following:
1.  The reason for the differential is for some reason other than race, color, religion, sex, sexual orientation, gender identity or expression, disability, age, or ancestral origin;
2.  The reason is job-related to the position in question; AND
3.  It is a “business necessity” which means essential to effective job performance; however, if the employee can demonstrate that an alternative exists to the pay differential and the employer refused to accept the alternative then the employer loses the case.
 
This year’s bill does include an allowance for pay differentials due to education, travel requirements, training, or shift differential (these are positive changes over last year’s bill)
 
If the employer fails to prove all three requirements to the Department of Labor and Training then the employee is entitled to unpaid wages – meaning whatever the other employee was getting paid – compensatory damages and liquidated damages up to three times the amount of unpaid wages and benefits deemed to be owed.  There is also and additional penalty paid to the DLT - $2500 for the first violation; $3000 for the second violation; $5000 for subsequent violations.  The language does provide for some flexibility to lower the fine for small businesses and good faith efforts which includes conducting a wage audit every 3 years.
 
Finally, the bill allows employers to ask for wage history but they cannot rely on the history when establishing the employee’s wage.  In reality, this means no employer should ask for wage history. 
 
 
The following bills were filed last week:
House Bill No. 5857  Marszalkowski, Morin, Vella-Wilkinson, AN ACT RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY INSURANCE - CONTRIBUTIONS (Permits employees who are covered by employer sponsored disability insurance programs to elect to be exempt from the state temporary disability insurance program, provided the employer has submitted documentation to the director confirming such coverage.)
 
House Bill No. 5869  Bennett, Handy, Kislak, Donovan, Carson, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2019 (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.)
 
House Bill No. 5886  O'Brien, Amore, Corvese, Ucci, Morin, AN ACT RELATING TO CRIMINAL OFFENSES -- GAMBLING AND LOTTERIES (Allows social gaming in private residences and in public taverns or private clubs so long as the gambling is incidental to a bona fide social relationship between the participants and only participants receive anything of value.)
 
House Bill No. 5892  Edwards, Kennedy, Casimiro, Cortvriend, Cassar, AN ACT RELATING TO HOLIDAYS AND DAYS OF SPECIAL OBSERVANCE (Expands definition of "employee" to include a caterer licensed by the department of health and division of taxation and food truck.)
 
Senate Bill No. 643  Goldin, Miller, Satchell, Valverde, Lawson, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY INSURANCE (Increases tax wage base for contributions to TDI /TCI, expands eligibility, increases benefit rates, adds sibling and grandchild in coverage benefits, increases temp caregiver weeks, and institutes fines for not reinstating an employee who uses program.)
 
 
Senate Bill No. 653  Gallo, Goodwin, Pearson, Quezada, Satchell, AN ACT RELATING TO EDUCATION - SCHOOL COMMITTEES AND SUPERINTENDENTS (Establishes courses that include instruction in career and technical education programs.)
 
Senate Bill No. 658  Euer, McCaffrey, Sosnowski, Goodwin, Conley, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND GLOBAL WARMING SOLUTIONS ACT (Establishes the Rhode Island global warming solutions act to reduce carbon emissions across various sectors of the local economy.)
 
Senate Bill No. 662  Sosnowski, McCaffrey, Conley, Euer, Goldin, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2019 (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. 679  Goodwin, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Prohibits cost sharing for persons forty-five (45) years or older for colorectal screening examinations, laboratory tests and colonoscopies covered by health insurance policies.)
 
Senate Bill No. 687  Ruggerio, Lombardi, McCaffrey, Goodwin, Pearson, AN ACT RELATING TO HEALTH AND SAFETY - STATE BUILDING CODE - NEW BUILDINGS AND STRUCTURES (Allows 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 forty-eight (48) hours after notification.)
 
Senate Bill No. 690  Crowley, McCaffrey, AN ACT RELATING TO HEALTH AND SAFETY - STATE BUILDING CODE (Amends the number of communities who may combine to appoint a building official and prohibits requiring a building official to perform duties not in the building code when building code duties are pending.)
 
Senate Bill No. 698  Goodwin, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND NONCOMPETITION AGREEMENT ACT (Creates a comprehensive statutory scheme to address all aspects of noncompetition agreements.)
 
Senate Resolution No. 711  Lawson, Nesselbush, Metts, Murray, Valverde, SENATE RESOLUTION RESPECTFULLY REQUESTING THE GOVERNOR’S WORKFORCE BOARD TO WORK WITH THE RHODE ISLAND DEPARTMENT OF LABOR AND TRAINING TO DEVELOP A REPORT ON THE FEASIBILITY OF EXPANDING NON-TRADE REGISTERED APPRENTICESHIP PROGRAMS IN RHODE ISLAND
 
Senate Bill No. 713  Ciccone, Miller, Goodwin, McCaffrey, Lynch Prata, AN ACT RELATING TO PROPERTY AND WORKS - LABOR AND PAYMENT OF DEBTS BY CONTRACTORS (Requires builders on state public school contracts $5,000,000 or more to have 15% of the labor performed by apprentices, and sets forth other consequential requirements for such contracts.)
 
Senate Bill No. 714  Coyne, Conley, Sosnowski, Sheehan, McKenney, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- GOVERNOR'S WORKFORCE BOARD RHODE ISLAND (Requires the workforce board to fund a non-trade apprenticeship incentive program in fisheries.)
 
Senate Bill No. 722  Metts, Goodwin, Miller, AN ACT RELATING TO TOWNS AND CITIES -- HOUSING MAINTENANCE AND OCCUPANCY CODE (Places responsibility on landlords to house evicted tenants due to landlord neglect/gives cities/towns revolving fund account flexibility/allows municipal lien similar to property taxes for action against property.)
 
Senate Bill No. 725  Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MECHANICAL TRADES (Adds thermal systems insulation workers, apprentices, journeypersons, contractors and masters to the mechanical trades' regulation chapter of the general laws.)
 
Senate Bill No. 726  Cano, Goodwin, Ciccone, Lombardi, Goldin, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- APPRENTICESHIPS (Comprehensively amends the state's apprenticeship laws to make them easier to understand and be more consistent with each other and applicable federal regulations.)
 
Senate Bill No. 727  Lombardi, Lombardo, Ciccone, Archambault, McCaffrey, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MECHANICAL TRADES (Allows the holder of a valid master mechanical trade license to perform repair or renovation work on certain large air conditioning equipment but must subcontract the work if it includes new construction.)

​An Update from the State House
 
Business Health Care Assessment Hearing
The House Finance Committee will take testimony on Article 16, Section 4 of the Governor’s budget on Tuesday March 19th, at the Rise – approximately 4:30 pm.  Under The Dome featured this item last week, but the issue is on the hearing schedule today. This section places a tax, on any employer with 300 or more employees, for each full or part-time employee that is receiving Medicaid assistance.  The assessment is equal to 10% of the employee’s wage up to $1500 a year.  So if an employee is paid $15,000.00 a year or more, and the employee is on Medicaid, the employer will receive a quarterly tax bill of $325.  Working adults with disabilities are exempt as are non-profit organizations and government entities.  It is not clear if non-profit means only 501(c)3 organizations.  There is no safe harbor provision for employers who offered the employee health insurance and the employee refused coverage.  Employers are barred from taking any adverse action against an employee that triggers the tax.  Lastly, there is no avenue for an employer to determine how many employees are enrolled in Medicaid prior to receiving the quarterly tax bill.
The Chamber strongly encourages you to contact your legislator if this issue is of concern to your business.
 
Senate Unveils Economic Package
On Tuesday, the Senate held a press conference to release a package of proposed bills intended to improve Rhode Island’s economic climate.  The bills fall into seven categories:
1.  Speed up Building Inspections for Development
*  Limit the sharing of Building Officials to two communities and bar Building Officials from performing non-building code work until code work is complete
*  Allow a contractor to hire a qualified third party inspector or a state inspector to inspect work when a Building Official fails to inspect a unit within 48 hours of an inspection request.  If a state inspector is utilized, the Town or City must reimburse the state for the cost.  If it is a third party, then the contractor would pay.
*  Allow Building inspectors, if qualified, to sign permits for issues within their specialty
2.  Expand Apprenticeship Opportunities
*  Require school building projects valued at $5 million or more to hire contractors that have apprentices and that can guarantee that 15% of the labor hours on the job will be performed by apprentices.  An agency can lower the percentage if apprentices are not available in a particular discipline.  Require public works contracts of $1 million or more to hire companies that employ apprentices.
*  Give school committees in K-12, the power to establish policies regarding implementation of career and technical education programs into the curriculum that include knowledge of careers
*  Align state apprenticeship laws with federal language. Determine when Rhode Island shall recognize out-of-state apprentices registered elsewhere and in Rhode Island
*  Request Governor’s Workforce Board to work with the Department of Labor and Training regarding the feasibility of expanding the Workforce Board’s non-trade registered apprenticeship grant program with a report date of January 1, 2020.
3.  Create More Housing Opportunities and Incentives for Solar Energy
*  Require Cities and Towns to create comprehensive ordinances for solar-siting projects with an incentive to use sites like brownsfields, landfills, superfund sites, etc.
*  Include a housing density option for land zoned for housing developments.  Within six months, the municipality must have a plan for replacing that lost residential density elsewhere in the municipality.
*  Direct the Office of Energy Resources to recommend megawatt expansion for the Public Utility Commission (PUC) approval and mandate reimbursement for interconnecting costs, determined by PUC.
*  Sets 10 megawatt limit in residential area, 4 megawatt limit in an area of environmental concern – both may be waived by the municipality
*  Expands allowances for Accessory Dwelling Units to be built in single-family residences for more family members than are currently allowed (current law allows for those 62 years of age or older or with disabilities).  ADUs have separate kitchens, bathrooms and entryways but maintain the appearance of a single home.
*  Creates a study commission to encourage population growth with housing opportunities such as workforce housing, mixed, income neighborhoods and age-friendly housing.
4.  Prepare Students for the Workforce
*  Create a 5 year, focused strategic plan to improve student performance and provide more opportunities for kids to be exposed to science, technology, engineering, arts and math (STEAM) education.
*  Requires the Office of the Postsecondary Commissioner to demonstrate financial stability and quality academics with consideration of workforce needs when approving for-profit higher-education programs that grant certificates.
5.  Enhance Rhode Island’s Seafood Industry
*  Establish a “Right to Fish” law similar to the “Right to Farm” law to ensure local fishers and aquaculturists can’t be found to be public nuisance due to odor or noise of seafood or equipment
*  Include fisheries in the apprenticeship program to encourage the next generation of fishers
*  Reactivate the Senate Task Force on Fisheries to review statutes and regulations of the industry
6.  Help Small Businesses and Breweries Grow
            *  Raise craft beer limits for sale to a full case of 24 beers for 16 oz. cans
*  Allow investors to raise a fund to make loans to early-stage investments in smaller companies (fewer than 250 employees) and in return, the investors get tax credits for their capital investments.
7.  Examine Health Care Provider Reimbursement Rates
*  Gather data to examine the health care provider rates and how those rates compare to surrounding states in order to determine if the state is losing health care professionals to other states
 
 
The following bills were filed last week:
House Bill No. 5825   Azzinaro, Corvese, Costantino, Solomon, Phillips, AN ACT RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY BENEFITS AND CONTRIBUTIONS (Requires temporary disability contributions and benefits to be calculated based upon an employee's wages and salaries, that shall also include any sales commissions earned.)
 
House Bill No. 5830   Maldonado, Ucci, Barros, McNamara, Blazejewski, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- LOCAL TOBACCO CONTROL ACT (Creates a comprehensive resolution scheme for cities and towns to follow concerning the sale and control of tobacco in their communities.)
 
House Bill No. 5847   Shekarchi, Solomon, Speakman, Blazejewski, Noret, AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES--CURRENCY TRANSMISSIONS (Adds virtual currency to the existing electronic money transmission and sale of check licenses and adds additional regulatory provisions to simplify and clarify licensing related thereto.)
 
House Bill No. 5848   Jackson, McNamara, Bennett, Corvese, Noret, AN ACT RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES (Increases penalties for violations of certain wage and hour laws.)
 
House Bill No. 5851  Cortvriend, Edwards, Ruggiero, Canario, Speakman, AN ACT RELATING TO PROPERTY -- DRY DOCK FACILITIES (Amends the lien and notice procedures for facility operators of dry dock facilities.)
 
House Bill No. 5854   Nardone, Filippi, Roberts, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES--LIABILITY AND COMPUTATION (Reduces the rate for sales and use taxes from seven percent (7%) to six and one-half percent (6.5%) upon passage of federal law or court decisions authorizing states to require remote sellers to collect or remit rate or sales taxes.)
 
 
Senate Bill No. 527  (Dept. of Business Regulation)  Felag, AN ACT RELATING TO ALCOHOLIC BEVERAGES - RETAIL LICENSES (Provides that Class F and F-1 liquor licenses may be issued to corporations, LLCs, and political organizations.)
 

An Update from the State House
Last week was a difficult one at the State House as a great deal of energy was spent on the issue of abortion/choice rights.  The House tried to keep emotional debate respectful on this volatile issue during the floor consideration.  The Senate Judiciary Committee pushed through hours of testimony finishing at 6:00 a.m.  The issue could possibly consume similar attention in the upcoming weeks.
 
Senate Finance Listens to Employee Misclassification Testimony
The Senate Finance Committee heard testimony on S.510, An Act Relating to Labor and Labor Relations – Payment of Wages.  This bill, in its SubA form, increases the fine for misclassifying an employee as an independent contractor to $2000 for each separate offense (each employee being a separate offense).  If an employer is administratively found guilty of misclassifying employees 3 separate times within 2 years, the business would lose its license to operate for a period of 3 years.  Testimony was provided that a business was found guilty 4 times.  Each time the business paid its fine and continued to operate its business in the same manner.  This bill was meant to provide a larger incentive to comply with Rhode Island wage laws.  The Chamber expressed concern over the tremendous increase in the initial fine, given that an employer may believe it is acting within the bounds of the law. 
 
Business Health Care Assessment Hearing
The House Finance Committee will take testimony on Article 16, Section 4 of the Governor’s budget on Wednesday March 13th, at the Rise – approximately 4:30 pm.  This section places a tax, on any employer with 300 or more employees, for each full or part-time employee that is receiving Medicaid assistance.  The assessment is equal to 10% of the employee’s wage up to $1500 a year.  So if an employee is paid $15,000.00 a year or more, and the employee is on Medicaid, the employer will receive a quarterly tax bill of $325.  Working adults with disabilities are exempt as are non-profit organizations and government entities.  It is not clear if non-profit means only 501(c)3 organizations.  There is no safe harbor provision for employers who offered the employee health insurance and the employee refused coverage.  Employers are barred from taking any adverse action against an employee that triggers the tax.  Lastly, there is no avenue for an employer to determine how many employees are enrolled in Medicaid prior to receiving the quarterly tax bill.
The Chamber strongly encourages you to contact your legislator if this issue is of concern to your business.
 
 
 
Minimum Wage on the Agenda
Under the Dome Update - 
The House Finance Committee will not hear testimony on the Employer Assessment Wednesday. We will alert you when a hearing is scheduled. Thank you for your continued interest in Rhode Island legislative matters 
On Wednesday, March 13th at the Rise (approximately 4:30 pm) in Room 212, the Senate Finance Committee will take testimony on the following minimum wage bills:  S.174 increases the hourly minimum wage effective January 2, 2020 to eleven dollars and fifty cents ($11.50) per hour and effective January 1, 2021, to twelve dollars and fifty cents ($12.50) per hour; S.241 increases the hourly minimum wage in accordance with the Consumer Price Index for the Northeast Region for the four (4) previous fiscal years, effective January 1, 2021; S.374 incrementally increases the $3.89 per hour tipped wage to $9.00 per hour on January 1, 2023 - starting on January 1, 2024, the minimum hourly wage for tipped workers would be equal to the state's regular minimum hourly wage; and S.508 gradually increases the hourly minimum wage from $10.50 to $15 by July 1, 2023, and the hourly minimum wage for employees receiving gratuities from $3.89 an hour to $15 an hour by January 1, 2027.
 
Intoxicated Employee Bill
On Wednesday, March 13th at the Rise (approximately 4:30 pm) in Room 203, the House Labor Committee will consider H.5657, An Act Relating to Labor and Labor Relations – Workers Compensation.  The bill states that if an employer shows that an employee, at the time of the injury or death or immediately following the injury or death, had positive test results reflecting the presence of alcohol, or another controlled substance, which was not prescribed by an authorized medical practitioner or was not used as prescribed, then it shall be presumed that the employee was intoxicated at the time of the injury and that intoxication caused the injury. The burden of proof would then shift to the employee to show he/she was not intoxicated or that the death was caused by something other than intoxication. 
 
The following bills were filed last week:
House Bill No. 5551  Caldwell, Mattiello, Casey, Craven, Marszalkowski, AN ACT RELATING TO HEALTH AND SAFETY - NALOXONE PUBLIC ACCESS PROGRAM (Requires public places to have naloboxes or naloxone on the premises for access and use during emergencies by trained employees or the general public with "Good Samaritan" protections.)
 
House Bill No. 5730  Carson, Cortvriend, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES DISCLOSURES (Requires real estate sellers to provide buyers with an annual building energy cost estimate and imposes a duty on sellers to conduct real estate condition inspections.)
 
House Bill No. 5780   Slater, Diaz, Blazejewski, Maldonado, Alzate, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE PERCENTAGE OF INCOME HOME ENERGY AFFORDABILITY ACT (Creates the Percentage of Income Home Energy Affordability Program, an income-sensitive tiered subsidy program to ensure that home energy utility costs are affordable for eligible low-income households.)
 
House Bill No. 5795  Ranglin-Vassell, Walsh, Almeida, Lombardi, Slater, AN ACT RELATING TO FOOD AND DRUGS-THE RHODE ISLAND CANNABIS EQUITY ACT OF 2019 (Establishes a board and appropriates funds from the legislature to create a local cannabis equity program to allow those people who want to enter the business of selling marijuana with state funding and technical assistance to do so.)
 
House Bill No. 5810   Corvese, Ucci, Morin, Kennedy, Azzinaro, 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. 5814  Millea, McKiernan, O'Brien, Jacquard, AN ACT RELATING TO INSURANCE -- PAYMENT TO HEALTH CARE PROVIDERS (Allows health care providers to refuse to accept payment by virtual credit card payment (a single-use digital credit card) at least once each health insurance contract year.)
 
Senate Bill No. 398  Picard, AN ACT RELATING TO BUSINESSES AND PROFESSIONS - DESIGNERS OF INDIVIDUAL SEWAGE DISPOSAL SYSTEMS (Provides that professional engineers who are registered and authorized to practice by the Rhode Island state board of registration for professional engineers be deemed to have met the qualifications for a designer's license.)
 
Senate Bill No. 410   (Dept. of Environmental Management)  Ruggerio, Sosnowski, Euer, Coyne, Valverde, 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.)
 
Senate Bill No. 417  Coyne, Conley, Lynch Prata, Seveney, Lawson, AN ACT RELATING TO HEALTH AND SAFETY - MARIJUANA IMPACT STUDY (Creates and funds a study on the impact of the use of marijuana in this state.)
 
Senate Bill No. 418  Cano, Goldin, Valverde, Crowley, Quezada, AN ACT RELATING TO TAXATION - SUGARY DRINKS (Creates a tax on sugary drinks and creates a dedicated revenue source for programs designed to benefit public health.)
 
Senate Bill No. 431  (General Treasurer)  Ruggerio, Goodwin, Ciccone, Archambault, Conley, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- NON-ERISA COVERED PENSION PLANS (Requires that all defined pension plans which are not covered by the ERISA and have at least two hundred (200) members, comply with ERISA's annual reporting provisions.)
 
Senate Bill No. 456   Sheehan, Crowley, Seveney, Satchell, Nesselbush, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE - PROCEDURE GENERALLY - NONDISCLOSURE AGREEMENTS (Places limits on the terms that can be included in an agreement that settles a claim of sexual harassment, retaliation for reporting sexual harassment and stalking.)
 
Senate Bill No. 460  Goldin, Lynch Prata, Quezada, Goodwin, Cano, 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.)
 
Senate Bill No. 479  Euer, Murray, Lombardo, Sosnowski, Valverde, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE SALES DISCLOSURES (Requires real estate sellers to provide buyers with an annual building energy cost estimate and imposes a duty on sellers to conduct real estate condition inspections.)
 
Senate Bill No. 484  Morgan, Rogers, Paolino, Algiere, Raptakis, AN ACT RELATING TO LABOR AND LABOR RELATIONS (Requires most employers in Rhode Island to participate in the E/Verify employment authorization program and establishes deadlines to do so.)
 
Senate Bill No. 493   (Attorney General)  Lombardo, Archambault, Ciccone, McKenney, McCaffrey, AN ACT RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - DECEPTIVE TRADE PRACTICES (Amends the Deceptive Trade Practices Act to clarify the law's exemptions, enable individuals subject to unfair or deceptive acts/practices to recover increased damages/permit the attorney general to seek civil penalties for initial violations of the law.)
 
Senate Bill No. 505  Lombardi, Archambault, Conley, Lynch Prata, McCaffrey, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION BENEFITS (Allows employers to shift the legal burden of proof to employees in certain workers' compensation actions where intoxicating substances may be involved.)
 
Senate Bill No. 508 Quezada, Goodwin, Goldin, Cano, Euer, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Gradually increases the hourly minimum wage from $10.50 to $15 by July 1, 2023, and the hourly minimum wage for employees receiving gratuities from $3.89 an hour to $15 an hour by January 1, 2027.)
 
Senate Bill No. 509  Goldin, Ruggerio, Goodwin, Lawson, Cano, 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.)
 
Senate Bill No. 510   Lynch Prata, Ruggerio, McCaffrey, Goodwin, Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES - VIOLATIONS (Increases penalties for violations of certain wage and hour laws.)
 
Senate Bill No. 514  McKenney, AN ACT RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY - SEASONAL EMPLOYEES (Creates a seasonal employment designation for purposes of unemployment benefits, which would allow employers hiring employees for less than twenty (20) weeks to apply for a seasonal determination by the director of the department of labor and training.)
 
 

​An Update from the State House
 
Senate and House Finance Committees Hear Sales Tax Issues and Association Dues
Both Finance Committees heard testimony on Article 5, Section 9 of the Governor’s budget and members of both committees asked pointed questions as to how certain items were singled out for taxation expansion. This is the Article that expands the 7% sales tax to the following items:
    -  Digital  Downloads ($2.6 million) such as Audio Works like Netflix, on-demand movies, games, movie streaming; Digital Audio Works such as audio book downloads; Ringtones; Digital books
    -  Hunting, Trapping and Shooting Services ($.6 million)
    -  Lobbying Services ($.9 million)
    -  Interior Design Services ($.5 million)
    -  Commercial Buildings Services ($6.2 million) which specifically includes extermination services, commercial cleaning services, landscaping and maintenance services, carpet and upholstery clearing services and janitorial services.  These services, if performed in a private residence with a home office, are not taxable.
Please take to the time to share any concerns you might have about the commercial building services sales tax with your state representative and state senator.  Now is the time to speak up!
Questions have been raised about the Governor’s proposal to tax organization dues.  The way the budget is drafted, an argument could easily be made that any organization that covers an entity subject to a sales tax could suddenly find its dues also subject to a 7% sales tax.  For example, taxi services are subject to sales tax.  If the taxi drivers have an association to which they pay dues, then the association dues could be subject to sales tax.  That said, the Department of Revenue stated that this is not the intent.  The intent of the association dues wording is meant to attach only to rod and gun clubs.  The reason given for this particular item is based on a concern that gun clubs would include ammunition as part of its membership benefit paid by dues, thus allowing club members to skirt paying the 7% sales tax on ammunition which the budget wishes to impose.  The budget language does require re-drafting if such a proposal is to move forward.  The Department said there is no intent to tax golf club memberships, fraternal organization dues or other dues at this time. 
The Department of Revenue also suggested exempting 501(c)(3) organizations from paying sales tax on lobbyist fees.  The Chamber is not a 501(c)(3) and thus would still be subject to the tax, as would most trade associations.
 
Senate Labor To Address Misclassification of Employees
On Wednesday, March 6th at approximately 4:30 p.m. in the Senate Lounge, the Senate Labor Committee will be taking testimony on S.370, An Act Relating to Labor and Labor Relations.  S.370 increases the maximum weekly unemployment benefit rate to the higher of 57.5% of the average weekly wages paid to workers in the prior calendar year or $636 per week.  S.510, An Act Relating to Labor and Labor Relations will also be heard.  S.510 increases the penalties for misclassifying an employee to $2000 for the first offense, with each misclassified employee being a separate offense.  Any employer found to violate the law on three separate judgments on three separate dates within a 2 year period, will be subject to the loss of its licenses to operate the business in the state.  The suspension of licenses will continue for at least 3 years and until all proper wages are paid.
 
What’s in the Governor’s Budget
 
Article 15 – Children and Families

• The budget requires a mandatory school breakfast program for any public school where 70% of the students are eligible for free or reduced price meals in the prior school year.  The breakfast must be offered after the instructional day has officially begun and can be consumed in the classroom.
• Children detained in the Slater Training School are considered residents of the municipality where they lived prior to arrival at the training school.  The home municipality will be responsible for payment of the community’s per pupil special education cost to DCYF for the delivery of education services to the child while detained in the Training School.
• The Department of Health will be responsible for conducting inspections of foster homes
• RI Works Program changes include an elimination of the Department of Labor and Training oversight of individuals’ work plans.  The budget does set a lifetime limit on the adult collection of cash assistance to 48 months (children in a family or unit are not subject to the 48 month restriction). 
• Under current law child care is to be provided to every assistance receiving participant “who requires child care…in order to meet work requirements.”  The budget changes the language to provide child care assistance for every “child who is eligible for cash assistance” to ensure the adults they are living with are able to either obtain or maintain employment or meet their individual employment plans.  Starting July 1, 2019, child care services are also provided to families at 180% of federal poverty level or below to allow adults to pursue an educational degree, vocational, technical, or professional certification.

 
 
 
The following bills were filed last week:
House Bill No. 5523  Barros, AN ACT RELATING TO TAXATION - SUGARY DRINKS (Creates a tax on sugary drinks and creates a dedicated revenue source for programs designed to benefit public health.)
 
House Bill No. 5550  Casimiro, Ackerman, Shanley, Noret, Alzate, AN ACT RELATING TO HEALTH AND SAFETY (Requires various health care facilities and child care facilities to have automated external defibrillators on site.)
 
House Bill No. 5576  Shekarchi, Ackerman, Lima, Kazarian, Noret, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Provides tax relief for pass-through entities that would be unable to take a federal income tax deduction for state and local income taxes they pay on their personal tax returns.)


House Bill No. 5611  Walsh, Lombardi, Cassar, Caldwell, Fogarty, AN ACT RELATING TO HEALTH AND SAFETY -- COMPREHENSIVE HEALTH INSURANCE PROGRAM (Establishes a universal, comprehensive, affordable single-payer health care insurance program.)
 
House Bill No. 5614  Amore, Serodio, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Exempts from sales tax any amount a construction contractor charges clients for materials and supplies in connection with a construction contract.)
 
House Bill No. 5615  Noret, Serpa, Hawkins, Caldwell, Canario, AN ACT RELATING TO TAXATION -- ELECTRONIC PAYMENT OF SALES TAXES (Requires that the tax administrator credit electronic sales and use tax payments made electronically exactly when received.)
 
House Bill No. 5628  Maldonado, O'Brien, Blazejewski, Serpa, Carson, AN ACT RELATING TO WATERS AND NAVIGATION - THE CLIMATE CHANGE COASTAL ADAPTATION TRUST FUND (Establishes OSACR, a fund which provides grants to fund projects that adapt infrastructure to address climate change; assess eligibility of projects, allocation, disbursements and the fund's financing. Effective July 1, 2019.)
 
House Bill No. 5631  Marszalkowski, Cortvriend, Morin, Shanley, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE FLEET REPLACEMENT REVOLVING LOAN FUND (Requires the state to phase in the use of zero emission vehicles beginning in 2020 using state fleet replacement revolving loan funds.)
 
House Bill No. 5648  Johnston, AN ACT RELATING TO ALCOHOLIC BEVERAGES - REGULATION OF SALES (Allows license holders to restrict any person who has not reached his or her twenty first birthday from entering the licensed establishment after ten o'clock (10:00) pm.)
 
House Bill No. 5656  Williams, Shekarchi, Ackerman, Marszalkowski, Almeida, AN ACT RELATING TO PUBLIC FINANCE - RHODE ISLAND SECURE CHOICE RETIREMENT SAVINGS PROGRAM ACT (Creates voluntary retirement IRA savings program for workers requiring employers to make available to employees if no employer retirement plan offered.)
 
House Bill No. 5657  Williams, Slater, Diaz, Almeida, Alzate, AN ACT RELATING TO LABOR AND LABOR RELATIONS - WORKERS' COMPENSATION BENEFITS (Shifts the legal burden of proof in certain workers' compensation actions involving intoxicating substances.)
 
House Bill No. 5659  Donovan, Blazejewski, Ranglin-Vassell, Craven, Casimiro, 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. 5660  Walsh, Lombardi, Lyle, Hull, Bennett, AN ACT RELATING TO LABOR AND LABOR RELATIONS - MINIMUM WAGE--GRATUITIES (Raises the minimum wage for tipped workers by fifty cents ($.50) per year commencing on January 1, 2020 until the tipped minimum wage is not less than two-thirds (2/3) of the regular minimum wage.)
 
House Bill No. 5667  Bennett, Edwards, Jacquard, Diaz, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- THE ENERGY AND CONSUMER SAVINGS ACT OF 2005 (Establishes minimum energy and water efficiency standards for certain products sold or installed in the state.)
 
House Bill No. 5671  (Dept. of Environmental Management)  McEntee, Fellela, Ucci, Costantino, Handy, 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.)
 

Congratulations to Ryan Fonseca, Century21 Topsail Realty Bristol,  on his 2018 Master Diamond Award.
 Ryan gives his clients 121% and is #Relentless. Ryan has also been awarded the Greater Providence Board of REALTORS Gold Circle of Excellence Award.