We are excited to announce a new resource for small businesses and nonprofits in Rhode Island.   Skills for Rhode Island’s Future, with funding from RI Commerce under the RI Rebounds Technical Assistance Program, is providing technical assistance services valued at up to $10,000 to qualified small businesses.
Eligible small businesses can receive technical assistance in the following areas:
•          Accounting & Bookkeeping
•          Legal Advice & Services
•          Marketing, Communications, Branding & Public Relations
•          Customer Data & User Experience Analytics
•          Strategic & Business Planning
•          Human Resources & Payroll Services
•          Information & Computer Technology
•          Website Development Support
•          Fund Development, & Grant Writing
•          Supply Chain & Procurementrisbhub_one_pager_small_business-eng-spa-2.pdf
•          E-Commerce


I have attached the Small Business FAQ document which provides more information about who is eligible for assistance under the RI Rebounds Technical Assistance Program.  I just wanted to highlight some quick facts for small businesses and nonprofits that may be eligible for assistance for the program!
Who is eligible to apply?
Any small business owner who meets the eligibility criteria and can self-attest to the following conditions is eligible for the RI Rebounds Technical Assistance Program: (see page 5)

• I am the owner or authorized agent of the small business in Rhode Island applying for this program.
• My business has been negatively impacted by the COVID-19 Pandemic. Negative impact is defined in the FAQ.
• My business, or 501(c)(3) nonprofit, was established to do business in Rhode Island prior to October 1, 2021.
• My business has gross receipts or sales of less than $1 million in 2020 or 2021, excluding any COVID-related financial assistance.
• My business has not been permanently closed. Small businesses that were seasonally closed are eligible.
• My business is not owned by a nationally or regionally owned franchise.
• I am not an employee of SkillsRI, and/or my business does have a conflict of interest with SkillsRI or RI Commerce.

I have not yet started my business, but I would like support getting it running. Can I still apply? (see page 7)
Eligible applicants for RI Rebounds must have been an established business in the State of Rhode Island prior to October 1, 2021. However, you may be eligible for other services through the RI Small Business HUB.  Please visit the RI Small Business HUB section of the FAQ for more information.


“I am the executive director of a nonprofit organization; are nonprofit organizations eligible to receive technical assistance? (see page 8)! Yes, nonprofit organizations are eligible, provided they meet all other eligibility criteria.  The organization must be physically located in Rhode Island and have gross receipts or sales of less than $1 million in 2020 or 2021.”
Here is the  link to the RI Small Business Hub website- https://www.risbhub.com/.  

​Media Contact: Erin Read; 401-440-8350; eread@polarismep.org
IMAGES: Video stills, BUPPY PETS logo, Hope & Main logo, Polaris MEP logo

Rhode Island Food Business Ecosystem Featured as “Heroes” Video Produced by National Institute of Standards & Technology’s Manufacturing Extension Partnership

Latest installment of “Heroes of American Manufacturing” series celebrates RI dog treat maker BUPPY PETS ® , culinary incubator Hope & Main, and Manufacturing Extension Partnership

Center Polaris MEP
Providence, RI – May 15, 2023 – Three Rhode Island businesses have been featured in the National Institute of Standards and Technology’s Manufacturing Extension Partnership (NIST MEP) video series, in an episode that spotlights the state’s food business ecosystem. Culinary incubator Hope & Main and
MEP Center Polaris MEP share their story of working collaboratively to support dog treat manufacturing business BUPPY PETS as it scaled production.
The “Heroes of American Manufacturing” video series celebrates the small and medium-sized manufacturers succeeding in the U.S. with the help of their local MEP Centers.

Rhode Island takes its first turn in the national spotlight in the latest video in the series. “The hero of this story is actually a trio of partners,” said Matt Watson, Polaris MEP Center Director. “It reflects the unique way Rhode Island helps its food and beverage businesses succeed, with private and public partners all working together to lift up manufacturers.”

Viewers will be introduced to BUPPY PETS (www.buppypets.com), launched by Warwick resident Lauren Ruggiero to offer 4-ingredient sharable treats inspired by snacks people love. The entrepreneur joined the business incubation program at Hope & Main (www.makefoodyourbusiness.org), a Warren,
RI, non-profit which jumpstarts early-stage food manufacturers.
Hope & Main partners with Providence-based Polaris MEP (www.PolarisMEP.org) to support their members with training on efficient production, continuous improvement and beyond. After Ruggiero was connected to Polaris MEP project manager Nathan Bonds, she said the company was able to reduce costs and increase productivity.

Lisa Raiola, President and Founder of Hope & Main, said that the video captures the spirit of how the incubator and Polaris MEP work together to develop and scale food businesses. “The Buppy Pets story is a powerful way to illustrate our shared mission of a thriving and diverse food economy in Rhode
Island.”


The video is currently featured on the NIST website at https://www.nist.gov/mep/mep-national-network/manufacturing-videos

# # #


--
Alison Mountford (she/her) 


Director of Marketing & Communications
Hope & Main
415-652-7473

​***  Call to Action!!!  ***
 
Wage Theft and Independent Contractor Misclassification Felony
 
Last week the Chamber testified on H.5902, An Act Relating to Labor and Labor Relations – Payment of Wages.  We believe this bill will be scheduled for a vote in some form before the end of the legislative session. The Chamber needs every business that operates as an independent contractor or hires independent contractors to contact their legislators now!
 
The Attorney General has requested a change in the law to increase the criminal consequences for failing to pay employees properly and for misclassifying individuals as independent contractors instead of employees.
 
There was a strong movement from the unions attending the hearing to change the definition of an independent contractor to make it more difficult to operate in Rhode Island as an independent contractor.
 
Under consideration is a definition that states individuals may only be independent contractors if their activities are outside the normal course of a business’s activities.  If you have a bookkeeper on staff, you could not hire an independent contractor to complete payments or financial reports.  If you are a nursing home with nurses on staff, per diem nurses could not be hired.  If you have an IT person on staff, you could not hire an independent contractor to trouble shoot a particular problem.  If your employee takes FMLA, you cannot hire an independent contractor to fill in during the absence. 
 
A second test under consideration bases the decision on control over the employee and whether the occupation is one that is traditionally filled by independent contractors.  To legally be an independent contractor under this alternate test, the person must meet both factors.  The courts will have to decide which occupations fall into that category and how to handle emerging occupations going forward.
 
If H.5902 passes with the felony language in place, and the definition changes, businesses will have to cease hiring independent contractors that no longer fit the definition or face felony charges and prison time.
 
We need you to contact your legislators now.  If you operate your business as a sole proprietor or if you hire independent contractors, it is imperative that you tell your legislators not to change the definition of an independent contractor.  Provide your name, the name and location of your business, an explanation of how you utilize independent contractors, and what will happen if you have to hire employees to replace your current independent contractors. 
 
Thank you for your help!
Monday, May 15th
 
The House Oversight Committee is meeting Monday at 3:00 to hear a presentation from the RI Department of Transportation concerning the progress and plans for meeting the greenhouse gas emission reductions required under the 2021 Act on Climate.  Governor McKee announced that the Rhode Island Department of Environmental Management (DEM) is moving to adopt the California Advanced Clean Cars II Standards (ACCII).  In its most simple form, McKee stated that ACCII requires a ramp-up of the sale of ZEVs in Rhode Island from 35% of all new vehicles sold in Rhode Island in 2026 to 100% ZEVS in 2035. Eligible ZEVs include battery electric vehicles, plug-in hybrid vehicles, and fuel cell electric vehicles. The Providence Journal reported an interim target of 68% of sales in 2030.    Residents will still be able to purchase fossil fuel cars from other states, and will be able to purchase used fossil fuel vehicles.  However, should the new sale targets not be met, the State will be forced to alter the rule in order to meet the 2021 Act on Climate.
 
The proposed regulation can be found at https://dem.ri.gov/environmental-protection-bureau/air-resources/advanced-clean-cars-ii-advanced-clean-trucks  Comments must be submitted to DEM by May 18th by using the following form:  https://ri.commentinput.com/?id=PTBJi
 
The Oversight Committee will likely hear more about this program as well as efforts underway to create electric vehicle charging stations along the interstate corridor.
 
Tuesday, May 16th
 
The Senate Commerce Committee is meeting Tuesday at the Rise (approximately 4:30) in Room 212.  Scheduled for hearing is S.166, An Act Relating to Public Property and Works – The Green Buildings Act.  The bill requires the Office of Energy Resources to establish building energy performance standards for large commercial and residential buildings.  “Large building” includes residential and commercial buildings with 25,000 sq. ft or more starting January 1, 2023.  Beginning January 1, 2026, the definition includes buildings with more than 20,000 sq. ft. and it brings in buildings with over 15,000 sq. ft. starting January 1, 2029.  Owners of large buildings would be required to fill out annual reports disclosing energy use.  Should buildings not meet the required energy performance standards adopted by the state, the bill outlines pathways to gradually decrease energy use and emissions until the building comes into compliance.  The ten-page bill can be found, in its entirety at  http://webserver.rilegislature.gov/BillText/BillText23/SenateText23/S0166.pdf  If you wish to submit comments on the bill, email testimony to slegislation@rilegislature.gov
 
 
Wednesday, May 17th
 
The Senate Labor Committee is meeting at 4:00 pm in Room 212.  Two bills scheduled for hearing are S.427 and S.425.
 
S.427, An Act Relating to Labor and Labor Relations – Workers Compensation – General Provisions, requires independent contractors to file an annual declaration to the Workers’ Compensation Court along with a $50 filing fee.  The fee is to be filed once, regardless of how many forms are filed; and it appears the independent contractor would be required to file a form for each client relationship.  The Department of Labor and Training would provide a report to the Department of Revenue listing all independent contractors filing with the court.
 
S.425, An Act Relating to Criminal Offenses – Identity Theft Protection Act of 2015, amends notification requirements when a company experiences a security breach.  Under current law, businesses that use or store personal information – including account numbers and credit card numbers, among other items – must notify consumers of a breach within 45 days of the breach event.  This timeframe was meant to provide businesses with the time needed to close off any unauthorized access and stop bad actors from doing more harm before the breach becomes public.  S.425 shortens the notification deadline to 15 calendar days; and the State Police must be notified within 24 hours of the detection of the breach. The legislation also awkwardly refers to employees of a local bargaining unit, and the requirement to notify the union leadership of the breach if employees are unionized.  This language makes sense, if the business affected is a state or local government, but does not make sense if the breach takes place in a private company with affected customers.  Any business that fails to comply with the notification rules is subject to a civil penalty of $100 per record for a reckless violation, and $200 per record for a knowing and willful violation.  The language in the bill calls for an effective date upon passage.
 
Testimony on either of these bills may be submitted to the committee by 3:00 pm at: SLegislation@rilegislature.gov
 
 
The Senate Committee on Special Legislation & Veterans Affairs is meeting Wednesday at 4:30 pm in Room 211.  The committee will be voting to pass S.444, An Act Relating to Holidays and Days of Special Observance, seeks to establish June 19th (or the Monday following the 19th if the day falls on a Saturday or Sunday) as Juneteenth National Freedom Day. This day would become a mandated holiday for businesses at the time and a half requirement unless exempt under another state law. 
 
 
There were no new bills of particular interest to the business community filed last week.

Call to Action!  PLEASE READ!
 
The Chamber is asking you to come to the State House this week and/or contact your legislators TODAY! 
 
Tangible Tax Exemption – Tuesday, May 9th
 
On the business-friendly side of the ledger, S.928 and S.955, Acts Relating to Taxation – Statewide Tangible Property Tax Exemption are being heard in the Senate Finance Committee Tuesday, May 9th at the Rise (approximately 4:30 pm).  S.928 provides a tangible property assessed value exemption up to $100,000 beginning in the tax year ending December 31, 2024.  The exemption applies to both municipal and fire district assessments. Similar to the car excise tax phase-out, the state would reimburse the taxing entity for the loss in revenue.  S.955 provides tangible tax relief as well, and reimbursement to the taxing entity, but phases it in over a longer period of time.  The exemption starts at $5,000 of assessed value in the tax year ending December 31, 2024; increases to $20,000 in 2025; $50,000 in 2026; $100,000 in 2027; and $250,000 in the tax year ending December, 31, 2028. 
 
An estimated 85% of all current tangible property taxpayers would have no tax liability once the $100,000 exemption level is reached.  That means approximately 32,000 small businesses may no longer be required to file the annual tax form and to pay the tax.
 
Property taxes levied by cities and towns represent arguably the most onerous and anticompetitive tax burden imposed on businesses in Rhode Island.  Rhode Island has some of the nation’s highest property taxes in the country – 9th highest property tax collections per capita.  Why is this important? Because, studies have shown that high commercial real estate and tangible taxes discourage investment and hinder economic development, and tangible taxes may also discourage businesses from making the capital investments needed to expand or to become more productive.
 
Please send an email to SenateFinance@rilegislature.gov before 3:00 pm Tuesday, May 9th.  Simply tell the committee, your name, company name and location, and how the paying of the tangible tax affects your business. Thank them for considering your testimony.
 
 
Wage Theft and Independent Contractor Misclassification Felony – Thursday, May 11th
 
The Chamber does not ask you to come to the State House often, but we are asking now.  On Thursday, May 11th at the Rise, approximately 4:30 pm in the House Lounge, the House Judiciary Committee will be taking testimony on H.5902, An Act Relating to Labor and Labor Relations – Payment of Wages.  This will likely be the only hearing on this House bill, regardless of any amendments that may come after the initial hearing Thursday.  Why does that matter?  Please read this entire article to understand the potential scope of this proposal.
 
The Attorney General has requested a change in the law to increase the criminal consequences for failing to pay employees properly and for classifying individuals as independent contractors when the government believes those individuals should be considered employees.  There are two distinct pieces to this bill – failure to pay wages properly and the misclassification of employees as independent contractors:
 
Failure to pay employees includes:

• Willful failure to pay wages on a regular pay day.  This will likely include any businesses paying employees on a bi-weekly basis without permission or a specific exemption from the state.
• Willful failure to pay any employee wages owed at the time of termination of employment.  Businesses are required to pay employee wages owed on the “next regular payday.”   If the business is liquidating or merging, employee wages are due within 24 hours of the separation of employment
• Willful failure to withhold union dues and pay those dues to the union
• Willful failure to pay wages owed to a deceased employee to the appropriate person/entity within 30 days of death

 
If the amount of wages owed in any of the scenarios mentioned above, is valued between $1,500 and $5,000, the employer is subject to imprisonment for up to three years and a fine equal to two times the value of the wages.  If the amount owed is between $5,000 and $10,000, the employer is subject to imprisonment for up to six years and a fine equal to two times the value of the wages.  If the amount of wages owed is more than $10,000, the employer is subject to imprisonment up to ten years and a fine equal to two times the wages owed.  It is unclear who would stand in the shoes of the employer to be subject to prison time.
 
Misclassification of employees:

• Under current Rhode Island law, the ability of an individual to operate as an independent contractor (IC) is determined through the use of the US Internal Revenue Service’s common law factor analysis.  There have been numerous legal cases and agency guidance documents issued over decades to help a very diverse business environment determine who can be an IC and who must be subject to employee status.
• Factors include items such as: level of control over the person, ownership of necessary equipment, written contract existence, how job-related expenses are handled, how vacations are handled, how long the relationship has lasted, does the individual have multiple clients, does the individual have the ability to make profits or losses, etc.  There is no magic number of factors that need to be met to be considered an IC. 
• The continued use of the IRS test is extremely important as industries are unique and emerging with new technologies and services.  There is no “one size fits all” definition across industry sectors.

 
H.5902 changes the knowing and willful misclassification of an employee as an independent contractor to a felony subject to imprisonment up to three years and a fine of up to two times the value of the wages or $10,000, whichever is greater, for the first offense.  Any subsequent offense, within a five-year timeframe, is a felony subject to imprisonment up to five years and a fine of three times the value of the wages or $20,000 whichever is greater.  Again, it is unclear who within the company would serve actual prison time.
 
*** IMPORTANT*** There is an effort to change the definition of independent contractor in the State of Rhode Island to make it more difficult to classify an individual as an independent contractor.  While H.5902 does not include language to change the definition, there is an effort underway to amend the bill after the Thursday hearing and no further hearing would be required under the legislative rules.  The Senate has a bill that limits IC status to those who can meet all of the following: (1) free from control and direction of the hiring entity, (2) the activity is outside the usual course of the hiring entity’s business, and (3) the person is customarily engaged in an independently established trade, occupation, or business, of the same nature as that involved in the work performed.  Should this language or some version of this language be inserted into H.5902, the ability of individuals to operate as an independent contractors will disappear and businesses that fail to place their independent contractors on the payroll as employees, will be guilty of a felony.
 
We need you to contact your legislators now.  If the wage theft piece of H.5902 is a concern to your business, tell them why.  If you hire independent contractors, it is imperative that you tell your legislators not to change the definition of an independent contractor.  Provide your name, the name and location of your business, and explanation of how you utilize independent contractors, and what will happen if you have to hire employees to replace your current independent contractors. 
 
Written testimony for the committee should be submitted by noon Thursday, May 11th at:  HouseJudiciary@rilegislature.gov  If you can attend the hearing Thursday, please submit written testimony as well.  Thank you for your help!
 
 
 
The following new bill has been filed:
 
House Bill No. 6357  Morales, Henries, Stewart, Giraldo, J. Lombardi, Sanchez, Speakman, Batista, Cruz, Biah, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- CREATING GREEN JUSTICE ZONES AND FURTHERING ENVIRONMENTAL JUSTICE (Creates Green Justice Zones to further Environmental Justice for traditionally underserved Rhode Islander communities.)
http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6357.pdf
 
Senate Bill No. 955  de la Cruz, Rogers, Tikoian, DiPalma, Lombardo, Ciccone, Burke, Pearson, AN ACT RELATING TO TAXATION -- STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION (Phases in a permanent tax exemption over 5 years for tangible personal property of businesses of less than $250,000 of assessed value. Provides reimbursement from state revenues for the amount of lost tax revenue resulting from the exemption.)
http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0955.pdf
 
House Bill No. 6372  Solomon, AN ACT RELATING TO HIGHWAYS -- CONSTRUCTION AND STATE MAINTENANCE OF STATE ROADS (Requires DOT to notify any surrounding residential property owners and commercial businesses of any proposed temporary or permanent closure to vehicular traffic of any street, highway or bridge, and to hold a public meeting in regards to closure.)
http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6372.pdf
​

​This Week At the State House
 
Tuesday, May 2nd  
 
The Senate Commerce Committee will meet Tuesday at the Rise (approximately 4:30pm) in Room 212 to discuss a few bills of interest to the business community. 
 
S.173, An Act Relating to Labor and Labor Relations – The Commuter Transportation Benefits Act, affects businesses with 500 or more employees working in the state.  The bill requires these entities to create a pre-tax transportation benefit consistent with section 132(f) of the IRS Code at the maximum benefit levels allowable.  The amount would be deducted from an employee’s gross income.  State and local employers are exempt as are employees subject to a collective bargaining agreement or any business that can show the establishment of the program would pose a severe financial hardship.  Any employer that fails to comply is subject to a civil penalty for the first offense of $100-$250 and will have 90 days to come into compliance.  After the 90 days have passed, if the employer still fails to comply, a civil penalty of $250 will be assessed every 30 days until the entity implements a program.
 
S.473, An Act Relating to Labor and Labor Relations – Payment of Wages requires every Rhode Island business, with thirty or more employees, to post competitive salary ranges for open positions on the company’s hiring page or on third-party hiring platforms.  If an employer fails to post the appropriate information, it is guilty of a misdemeanor and can be fined $400 for each separate offense or imprisoned up to one year.
 
S.754, An Act Relating to Commercial Law – Rhode Island Data Transparency and Privacy Protection Act, is an eighteen-page bill that seeks to restrict the sale of an individual’s personal information to third parties.  This often happens on the internet and is why you see pop-up ads for products and services related to internet searches and other on-line activities.  But there are many reasons businesses collect and sell data to assist customers.  S.754 applies to owners of websites or online services with more than ten employees.  Personal data includes a name and a credit card number, or a license number, debit card number, geolocation data, etc. An owner of such a site must clearly disclose all of the categories of information it collects, as well as all third parties to whom the owner discloses the information.  Customers must be given an opportunity to opt out of the collection of the data, and they must be permitted to review any data collected and to correct it if they wish.  The bill exempts company loyalty programs, rewards programs and club programs such as discount clubs.  S.754 exempts financial institutions and HIPAA organizations, but then pulls them back in on the last page of the bill.  The bill exempts a number of specialized entities like educational facilities, human research programs, contractors working with the government, etc.  Violations of the proposal fall under the penalties of the deceptive trade practices act and includes a fine of $100 to $500 for each inappropriate disclosure of data.  There is no private right of action permitted.  This bill is very comprehensive.  If you have an interest in this issue, the bill can be viewed at:  http://webserver.rilegislature.gov/BillText/BillText23/SenateText23/S0754.pdf
 
If you wish to submit written testimony, email it to slegislation@rilegislature.gov by 3:00pm Tuesday, May 2, 2023.
 
Wednesday, May 3rd
 
The House Finance Committee will be discussing the expansion of family and parental leave in the form of H.5990, An Act Relating to Labor and Labor Relations – Rhode Island Parental and Family Leave Act.  At 4:00 in Room 35, this very simple bill will be heard.  H.5990 increases the amount of parental or family leave available to an employee from thirteen (13) weeks to twenty-four (24) weeks in any two (2) calendar years.  If an employer provides paid leave to employees for a period of time, the additional weeks added under this proposal may remain as unpaid leave. The bill calls for an effective date “upon passage.”  The law, as it stands today, applies to employers with 50 or more employees.  Leave is available for the care of family members, defined as “a parent, spouse, child, mother-in-law, father-in-law, or the employee himself or herself.”  To submit written testimony, use the following link:  HouseFinance@rilegislature.gov
 
 
Thursday, May 4th
 
A familiar bill is scheduled for hearing in the Senate Labor Committee Thursday at the Rise in room 211.  S.243, An Act Relating to Health and Safety – Catastrophic Illness in Children Relief Fund has been considered in previous years.  It creates a fund to financially assist families of children with grave illnesses.  S.243 relies on revenues collected through a new $1.50 per employee tax on businesses. According to the Department of Labor and Training’s March report, there are 490,000 nonfarm employees which includes 65,900 government employees.  Presumably, this tax would raise over $600,000 for the fund.  If you wish to submit testimony, email it to  SenateFinance@rilegislature.gov by 3:00 pm Thursday.
 
 
The following new bill has been filed:
 
House Bill No. 6327  Fellela, Messier, Potter, Cruz, Serpa, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- HEALTHY AND SAFE FAMILIES AND WORKPLACES ACT (Mandates that the work week be reduced to thirty-two hours and rate of pay for a thirty-two (32) hour workweek would remain the same as the rate of pay for forty hours.)  http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6327.pdf
 
House Bill No. 6343  Alzate, Henries, Stewart, Speakman, Cotter, Spears, Casimiro, Kazarian, McEntee, Kislak, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MENSTRUATION LEAVE ACT (Grants leave of up to three (3) days per month to menstruating employees.)
http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6343.pdf
 
House Bill No. 6344  Alzate, Stewart, Potter, Cruz, Sanchez, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- HEALTHY AND SAFE FAMILIES AND WORKPLACES ACT (Mandates that the work week be reduced to thirty-two hours and rate of pay for a thirty-two (32) hour workweek would remain the same as the rate of pay for forty hours.)
http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6344.pdf