New Bill Filed to Address Woonsocket Tax Code

H.6226 (link below) was filed last week.  Currently, the City of Woonsocket has three classes of property rates: 1) tangible personal property and motor vehicles; 2) residential real estate less than four units; and 3) commercial and industrial real estate as well as residential real estate with more than four units.  The new proposed legislation appears to break the first class into two subgroups: 1)(i) tangible property and 1)(ii) motor vehicles.  This language change was proposed to prepare for the potential motor vehicle tax phase out should the State’s budget include such phase out.   The second change comes in the second tax classification.  H.6226 clarifies the ability of the City to implement a homestead exemption for residential property.  However, new language concerning residential property, grants the City authority “to divide this class into nonowner and owner-occupied and homestead properties and adopt separate tax rates.”  If passed non owner occupied residential properties could be taxed at a different rate than owner occupied residential property.  The bill has been sent to the House Municipal Government Committee for review.

Wage Lien Bill Passes Senate

S.192, An Act Relating to Labor and Labor Relations – Payment of Wages passed the Senate 34-0 last Wednesday (3 not voting).  This bill would allow employees to place a lien on an employer’s property if he/she believes wages have not been properly paid.  The process is as follows:

1.     Employee sends letter to employer stating the amount owed in wages and the address of the employer’s property that the employee intends to place a lien against
2.    The employer has 90 days (amended from the original 30 days) to file a complaint in Superior Court in order to stop the lien.  If no complaint is filed within the 90 days (amended from the original 30 days), the employee can file the lien in the land evidence record of the city/town where the property is located.
3.    If the employer files the complaint and the court finds for the employee, the lien can be filed in the land evidence record (automatic award for court fees and attorney fees was removed from the bill).
S.192 will now likely go to the House Labor Committee.

House Committee to Reconsider Passage of Marijuana Study Legislative Commission Bill 

H.5551 Sub A, A Joint Resolution Creating a Special Legislative Commission to Study the Effects of Legalizing Marijuana passed on May 16, 2017 is scheduled for reconsideration by the House Judiciary Committee on May 24, 2017.  The Resolution calls for the creation of a 17 member commission to “conduct a comprehensive review and make recommendations regarding marijuana and the effects of its use on the residents of Colorado and Washington to the extent available, and to study the fiscal impact to those states; and thereafter the potential impact on Rhode Island.”  The commission is charged with reporting its findings to the legislature by March 1, 2018.  The Senate version S.277, was heard by the Senate Judiciary Committee on May 18th and held for further study.  

Minimum Wage Hearing Update

The Chamber, in a rare joint hearing of the Senate Finance Committee and the Senate Labor Committee, registered its opposition to increasing the minimum wage, during what was a lower key hearing than in the House Labor Committee.  Jobs for Justice, the lead proponent, continued to state that were it not for employees, there would be no businesses in Rhode Island.  They also emphasized the fact that Massachusetts and Connecticut have a higher minimum wage than Rhode Island.  Opponents talked about the business community’s need for predictability and the multiple year increases that the state has experienced recently.  The business industry advocates also mentioned was the difficulty that the effective date of July 1, 2017 brings with it.


House Finance Committee Endures Marathon Hearing

For five hours, the House Finance Committee listened to testimony concerning bills that are geared to stop the Burrillville Power Plant and H.5369, An Act Relating to Health and Safety – Energize RI: Clean Energy Investment and Carbon Pricing Act of 2017.  While the Chamber took no position on the anti-Invenergy bills at this time, the Chamber did testify against H.5369.  H.5369 imposes a $15 per ton carbon tax on all fossil fuels for the years 2018 and 2019, and escalates $5 per ton (plus an inflation rate) every year thereafter.  The fee would result in a first-year tax of 13.1 cents per gallon on gasoline, 15.5 cents per gallon on diesel fuel, 9 cents per gallon on LPG and 14.5 cents per gallon on jet fuel.  The tax would go up from that point starting in 2020. There is also a tax on natural gas, propane, coal and all other fossil fuels according to their carbon content.  Forty percent of the taxes collected would be returned to individuals over the age of 18 with a bump for heads of households.  Thirty percent would be returned to business based on the number of employees.  Presumably taxes would be collected all year and returned after tax filing time when the Department of Revenue can determine how many Rhode Islanders are over 18 and how many have children, as well as how many employees each company might have had during the year.  H.5369 was held for further study.


The following new bills were filed:

House Bill No. 6224, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION--BENEFITS (Repeals a provision of the workers' compensation law that provides that for injuries on and after July 1, 2023, "material hindrance" includes only compensable injuries causing a greater than sixty-five percent (65%) degree of functional impairment.)

House Bill No. 6226, AN ACT RELATING TO TAXATION -- WOONSOCKET (Creates several new subsections in the Woonsocket property tax code.)

By Liz Tanner, Esq.
Executive Vice President- Client Services
Rhode Island Commerce Corporation

Q. How does the Wavemaker Fellowship Program help to keep some of Rhode Island’s best graduates? How is it contributing to Rhode Island’s economic growth?
 
A. The Wavemaker Fellowship program provides student loan debt relief to qualifying individuals who work in Rhode Island in a STEM (Science, Technology, Engineering, Mathematics) or commercial design field in the form of an annual tax credit for up to four years. The maximum value of this tax credit is equal to the Fellow’s annual eligible higher education loan repayment expense, up to the following caps:
 

• If your highest degree is an associate’s degree, the cap on your award is $1,000
• If your highest degree is a bachelor’s degree, the cap on your award is $4,000
• If your highest degree is a graduate school degree, the cap on your award is $6,000

 
For example, if a Fellow’s minimum monthly payment is $300, their eligible expenses would be $3,600 (12 months x $300).
 
The program was established in 2015 as a part of Governor Gina Raimondo’s Jobs Plan. According to the State’s strategy for economic development, we need to continue to invest in and build upon biomedical innovation; IT, cyber and data analytics; defense, shipbuilding and maritime industries; advanced business services, and design, food and custom manufacturing.
 
An important part of that strategy is to retain the high-quality STEM talent necessary for these key industries that are critical to our advanced economy. Graduates from RI institutions have, on average, $33,000 in higher education student loan debt, the 5th highest in the country. The financial assistance provided through this program is a critical factor to many recipients who are determining if they can afford to stay in Rhode Island or if they should pursue opportunities in another State.
 
We want these talented young professionals to call Rhode Island home. The Wavemaker Fellowship is helping to make our state the place where young people want to start and grow their careers – and where businesses want to be.
 
For companies, it makes doing business in the State of Rhode Island more attractive. If their employees have the opportunity to apply for a Fellowship like this one, they may have a competitive advantage when recruiting and retaining top talent.
 
It’s a win-win-win program.
 
 
Q. Who is eligible to apply for the Wavemaker Fellowship program?
 
A. Anyone with higher education loan debt and who is employed full-time, or has an offer of full-time employment, in Rhode Island with a private company, non-profit, or university in a STEM or commercial design field is eligible to apply.
 
This program defines STEM and commercial design fields as: life, natural, or environmental sciences; computer, information, or software technology; advanced mathematics or finance; engineering; industrial design or other commercially related design field; or medicine or medical device technology. For a sample list of qualifying occupations, click here.
 
Applications are being accepted for the 2017 Wavemaker Fellowship until June 23rd. For more information, and to apply, click here.
 
Questions? Email Jillian Butler at [email protected] or call 401-278-9153.

By Beth Carter
PR Team Member
​
When you first meet Dr. Ronald G. Shapiro, he will tell you that he has two missions in life - making an impact on the next generation and having fun. 

What may not be as clear at first glance is that he has an impressive background having earned a PhD from Ohio State University, having taught at several colleges, being recognized as a Fellow in several professional organizations and having served 23 years working for IBM in various capacities. 

Through his Education by Entertainment programs Ron creates content that makes learning fun for a wide variety of groups including businesses, schools, and academic institutions.  He designs programs that emphasize one's strengths but also discusses how one compensates for weaknesses.  Surprisingly a 75-90 minute program can have thirty different activities, even using game show formats. This successful model incorporating lots of things to do has kept all his audiences engaged - at any age!  The activities are so much fun that Ron is also pleased to offer them as part of a social event such as a birthday celebration!!! 

Ron is a careful observer of people as well.  He is always working on ways to improve his programs or tweak them for different audiences.  He feels that in general most people react too quickly and it is important to see the value of slowing down and really learning.  Ron encourages people to think differently by asking interesting questions like "what do you do at a green light?" immediately after asking them spell SPOT fast five times (many people think "red light" because they are not given the time to process the question correctly).  Check out Ron's monthly articles in the Rhode Island Small Business Journal (RISBJ) for more examples of his learning activities. 

Ron's meets new clients mostly through professional organizations and word of mouth.  He enjoys interacting with students, parents, teachers, psychology professionals, engineers, as well as corporate leaders to make learning more enriching and memorable which in turn makes for a more positive environment for all.

People's Credit Union was recently named as one of the Providence Business News' 2017 Best Places to Work in Rhode Island. This is the fifth consecutive year that People's has been awarded this distinction.
 
Companies from across the state entered the two-part survey process to determine the Best Places to Work in Rhode Island.  The first part consisted of evaluating each nominated company's workplace policies, practices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking.
 
"It has been our goal to maintain a workplace where our employees can flourish and succeed in their careers.  Providing an extraordinary employment experience is a core value at People's Credit Union.  By far our employees are our biggest asset and we value their contributions to the organization's success.  We are thrilled once again to receive this prestigious honor," commented Ellen Ford, People's President and CEO. 
 
For more information on the Best Places to Work in Rhode Island program, visit BestPlacesToWorkRI.com.
 
About People's Credit Union
People's offers a complete range of services including online and mobile banking, savings and checking accounts, personal loans, mortgages, business accounts, business loans, and financial services. Headquartered in Rhode Island, People's Credit Union is a member-owned, state chartered, federally insured, community credit union established in 1922. Membership is open to all individuals. Deposits are insured up to $250,000 by the National Credit Union Administration (NCUA), an agency of the federal government. For more information about People's Credit Union visit peoplescu.com.

Natalie Manning has been promoted to Creative Director at Discover Newport, the official destination marketing organization for Newport and Bristol Counties, Rhode Island. Manning is responsible for overseeing and designing all creative marketing initiatives, branding, print and video production.
 
Manning, a Middletown resident, has a degree in graphic arts B.S. in marketing from the University of Rhode Island.


About Discover Newport
Discover Newport is the official destination management organization (DMO) dedicated to promoting the City of Newport and the eight surrounding coastal townships in Newport and Bristol counties, Rhode Island. These include Barrington, Bristol, Jamestown, Little Compton, Middletown, Newport, Portsmouth, Tiverton and Warren. As a non-profit organization, Discover Newport partners with stakeholders throughout our tourism and hospitality industry to market the region as a premier destination for business and leisure travel. DiscoverNewport.org.

Warren has long been a foodie attraction, and now wine connoisseurs can delight with the addition of Merienda Tapas, Cicchetti & Wine Bar. This hot new restaurant is a fitting add-on to Water Street’s eclectic restaurant scene.

Located at 125 Water St., formally The Old Nathanial Inn, Merienda’s is a perfect place for a romantic bite to eat with a loved one; yet also provides a comfortable atmosphere to catch up and relax with friends. This is the first restaurant and wine bar featuring authentic tapas and cicchetti style-dishes, with an accompanying savory yet affordable wine list - five different European wines available at just $25 a bottle. 

Craig Corsetti, executive chef and owner, has years of experience in the industry holding various positons all over the world. He’s worked in the kitchens of Florence, Italy, and under James Beard Award winning chefs is Washington, D.C. Pair that up with his 18 years of experience at The Newport Vineyards and it’s no wonder Merienda’s is such a delectable place. His passion for authentic cuisine and extensive knowledge of wine is evident in this charmingly unique venue. 

For those of you who don’t know – I didn’t either – cicchetti is a Venetian term meaning savory snacks or small side dishes, typically served in a bar or informal restaurant. Similarly, tapas means small Spanish savory dishes, typically served with drinks at a bar. What this translates to is that there’s a great new spot to try delicious small plates paired with thoughtfully selected imported wines or craft beer. So get out there, try something new and support your local businesses. Tell Craig that the East Bay Chamber of Commerce sent you. Cheers!  

Revenue Estimating Conference Reveals Challenge for Legislature

A marathon meeting of the State’s Revenue Estimating Conference resulted in an agreement that the State of Rhode Island is facing a $60.1 million shortfall in the current year revenues and a $39.5 million revenue shortfall for FY2018.  The Corporate tax collections are expected to bring in $125 million this year – last year the state collected $134.9 million; and the revenue associated with the collection of sales tax on internet sales was also less than expected.  These are just two of the line items that came in low.  In addition to the revenue challenge, expenses were up by about $15 million.  What does that mean?  Officials must find a way to close a $100-$115 million gap.   House Finance Chairman Marvin Abney stated that previous legislatures have gone through this before and that they will find a way to do it again. “We have to,” he said.  The Chairman, now overseeing the creation of his second budget, suggested that the committee needs to look at current programs to determine what is working positively for the state, and then look at options for cutting expenses.  

State law requires a budget to be passed by June 30th.  The legislature hopes to meet that deadline with time to spare.


Senate Labor Committee Passes Wage Lien Bill 
S.192, An Act Relating to Labor and Labor Relations – Payment of Wages passed the Senate Labor Committee with a few amendments, much to the surprise of members of the business community.  It is scheduled to be voted on by the entire Senate Wednesday 17th.  Unfortunately, the changes to the bill were minimal.  This bill would allow employees to place a lien on an employer’s property if he/she believes wages have not been properly paid.  The process is as follows:

1.     Employee sends letter to employer stating the amount owed in wages and the address of the employer’s property that the employee intends to place a lien against
2.    The employer has 90 days (amended from the original 30 days) to file a complaint in Superior Court in order to stop the lien.  If no complaint is filed within the 90 days (amended from the original 30 days), the employee can file the lien in the land evidence record of the city/town where the property is located.
3.    If the employer files the complaint and the court finds for the employee, the lien can be filed in the land evidence record (automatic award for court fees and attorney fees was removed from the bill).

S.192 provides little due process rights for employers and encourages employees to use the process because the employee has no costs associated with sending a letter, and very little cost for filing a lien.  Additionally, even if the employer believes no wages are owed, it will be cheaper to pay the employee the amount demanded than to pay court fees and attorney fees to fight an unfounded or misunderstood claim.  It is important to note that the Department of Labor and Training supported the concept of the bill.

The Chamber opposes the passage of S.192.  


Treasurer Releases Local Pension Plan
General Treasurer Seth Magaziner is circulating a plan to address the problem of municipal underfunded pension programs – called the Healthy Local Pension (HELP) proposal.  Most of the 34 locally administered pension plans are currently less than 60% funded, qualifying for critical status, and 12 plans finished FY2015 with a funding level below 40%. The escalating liabilities affect municipal investments in infrastructure and schools as well as the local tax structure. 

The HELP legislation provides an optional pathway for these communities to join the state-run MERS system, which provides lower overhead costs, professional management and responsible governance.  All 116 plans already in MERS have an average funding level of 83%.  Under current law, however, a municipality must conform immediately to the MERS requirements such as retirement age, years of service and length of amortization schedules in order to join the program.  The Treasurer’s proposal would allow municipalities to join MERS and phase in their plans to eventually match the MERS requirements.  One option would allow municipalities to maintain their current benefit levels for existing employees, but require all new employees to confirm to MERS requirements.  Municipalities could also choose to renegotiate benefits with existing employees in order to reduce their unfunded liability faster.  The bill would also provide an option for municipalities with closed plans, in which no new participants will be added, to turn over management of the systems to Treasury without changes in benefits.  These closed plans would not be considered part of the MERS system.

The Chamber supports the HELP proposal.


The following new bills were filed:

House Bill No. 6203, AN ACT RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX RELIEF ACT (Permits the Cumberland Town Council to establish limits on the number of students from the Cumberland school district who may enroll in any charter public school, Davies, and the Met Center.)  This bill is scheduled to be head in the House Health, Education & Welfare Committee Wednesday, May 17th at approximately 4:30pm.

House Bill No. 6211, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- INDIVIDUALIZED WORKER SAVINGS ACCOUNT PROGRAM ACT (Abolishes the current temporary disability insurance program and replace it with a more flexible, expansive and mandatory new program that compensates all workers who become disabled due to non-work related injuries.)

Senate Resolution No. 882, SENATE RESOLUTION CREATING A SPECIAL LEGISLATIVE COMMISSION TO CONDUCT A COMPREHENSIVE REVIEW AND MAKE RECOMMENDATIONS REGARDING THE CREATION OF A WORLD-CLASS EDUCATION SYSTEM IN RHODE ISLAND (Creates an 11 member commission to conduct a review and make recommendations on the creation of a world-class education system in Rhode Island, and who would report back to the Senate by March 1, 2018, and expire on July 1, 2018.)

 Senate Bill No. 886, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS --DUTIES OF UTILITIES AND CARRIERS  (Requires pub. utilities/electric distribution cos. to provide prompt/adequate service to ratepayers for new service/upgrades with penalty up to $10,000 with electric distribution cos. to provide written estimates/itemized bill for work in excess of $500.)

Senate Bill No. 888, AN ACT RELATING TO HEALTH AND SAFETY -- ELECTRONIC WASTE PREVENTION, REUSE AND RECYCLING ACT (Amends the electronic waste preventions, reuse and recycling act.)