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Nominate Your Favorite Business!

5/29/2025

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Under the Dome: Advocacy in Action

5/27/2025

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Advocacy in Action May 27, 2025
Price Transparency Last Thursday, the House Corporations Committee voted favorably for H 5247 SUB A, which narrowly tailored the “junk fee” legislation to be consistent with the Federal Trade Commission rule that took effect May 12, 20205, and which specifies that it is an unfair and deceptive practice for businesses to offer, display, or advertise any price of live-event tickets or short-term lodging without clearly, conspicuously and prominently disclosing the total price. The original bill was broad sweeping across all industries and would have been extraordinarily difficult to implement. The Sub A resolves the concerns expressed by the Chamber. It has not yet been scheduled for action on the House Floor. The SubA can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/H5247A.pdf

House Budget Update
Last Wednesday, House Fiscal Advisor Sharon Reynolds Ferland provided a briefing on the budget status. It provides an overview of the May Revenue and Caseload Conference, updates information on pending issues and budget initiatives, and provides context for the Governor’s FY26 and revised FY25 budgets. The slide deck from the presentation is available at: https://www.rilegislature.gov/housefiscalreport/2020/Budget%20Status-%20May%2014%20Briefing.pdf

Tuesday, May 27th
Tax Credit Reforms
The Senate Finance Committee is scheduled to consider two bills impacting tax credit programs at 3pm in room 211. S1002 would amend the Rebuild Rhode Island tax credit program to allow for sales and use tax exemptions for qualified development projects related to affordable and workforce housing in addition to the maximum program credit for which a project is eligible. S 940 would amend the historic tax credit program to increase the maximum project credit and raise the direct hard cost threshold for prevailing wage requirements from $10 million to $20 million.
Identity Theft Revisions
The House Judiciary Committee will meet at the Rise (approximately 5pm) in the House Lounge to hear testimony on bills including H 6346, which would change “personal information” to “personally identifiable” information, and require businesses to implement controls and procedures to restrict and manage access to the data “in transit and at rest.” Companies that disclose data to third parties must now have a written contract stating the third party will maintain reasonable security measures. It also adds subcontractors of the third party as well. Lastly, the bill increases the penalties for reckless violations of the Act from $100 per record to $1000 per record; and for knowing and willful violations, the penalty increases from $200 per record to $2000 per record. It also gives the courts the ability to impose additional penalties as it deems warranted under the circumstances. Companion legislation, S 1037 was held for further study by the Senate Artificial Intelligence & Emerging Technologies Committee on May 12th. To submit testimony on H 6346, email it to [email protected].
New Employment Tax
The Senate Committee on Health & Human Services will meet at the Rise to consider S 50, which would place a $1.50 per employee tax on businesses in order to finically fund a new state program entitled the “Catastrophic Illness in Children Relief Fund.” This fund is meant to financially aid families of children with serious illnesses. According to the Department of Labor and Training’s February 2025 data, there are 515,000 nonfarm employees in Rhode Island which includes 66,400 government employees. Presumably, this tax would raise over $670,000 for the fund. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0050.pdf

Wednesday, May 28th
The Senate Committee on Labor and Gaming will meet at 4pm in room 212 to hear legislation, S 1058, which would require employers to provide each employee of a warehouse distribution center, upon hire, with written description of quotas and tasks applicable to the employee within defined time periods and adverse employment action for failure to meet the quota. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1058.pdf To submit testimony on S 1058, email it to [email protected].

Thursday, May 29th
Taxes on Income and Wealth
The Senate Finance Committee is meeting at the Rise (approximately 5pm) in room 211, including two proposals increasing taxes on higher income earners and on world-wide assets.
S 329 would create an additional tax rate of 3% on taxable income over $625,000 beginning in 2026, impacting the top 1% of personal income tax filers. Companion legislation, H 5473, was held for further study by the House Finance Committee on May 6th. https://webserver.rilegislature.gov/BillText25/SenateText25/S0329.pdf To submit testimony on S 329, email it to [email protected].
S 779 would impose a wealth tax of 1% on Rhode Island individuals and business entities beginning in 2026. "Worldwide wealth" is defined as “the fair market value of all intangible assets, or portion thereof, owned or controlled by a resident.” The first $25 million of assets is exempt from taxation. The legislation includes a tax penalty of 50% of the underpayment if the taxpayer substantially underestimates the tax, and a 30% penalty in all other cases. This 1% worldwide wealth tax appears to be a tax in addition to any other tax owed. Companion legislation, H 6290, was held for further study by the House Finance Committee on May 21st. https://webserver.rilegislature.gov/BillText25/SenateText25/S0779.pdf To submit testimony on S779, email it to [email protected].
Phaseout of Local Meals & Beverage Tax The Seante Finance Committee will also hear legislation, S 416, that would phase out the 1% local meals and beverage tax by 0.25% per year until eliminated on January 1, 2029. Since 2003, the hospitality industry’s retail sales have been subject to this supplemental local 1% tax in addition to the state’s 7% sales tax, differently than other retail sales. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0416.pdf To submit testimony on S 416, email it to [email protected].

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Monthly Mingle at Blount Clam Shack May 14, 2025

5/19/2025

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Thank You, Blount Clam Shack!
A big thank you to Blount Clam Shack for hosting our May Monthly Mingle!
It was a fantastic evening filled with new connections, great conversations, and delicious tastings from Blount's incredible menu. The beautiful waterview in Warren made it even more special!
​We appreciate your hospitality and support—what a perfect setting for networking and community fun! 

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Under the Dome; Advocacy in Action

5/19/2025

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This Week At the State House
Tuesday, May 20th
The Senate Finance Committee has a full schedule in Room 212 At the Rise (approximately 4:30). There are five bills of interest to the business community:
Shift of Utility Costs to Businesses and Higher Income Earners
S.185, An Act Relating to Public Utility and Carriers, creates a tiered rate system for electricity and natural gas customers whose household income level is below 150% of the federal poverty level and who are eligible for LIHEAP assistance or Medicaid. For these households, the plan envisions capping electric rates to ensure that they pay no more than 3% of their income on electricity or 6% of their income if the house utilizes electricity as a sole source of heat. The program will be funded by increasing rates on all other customers including commercial and industrial customers. Rhode Island businesses currently pay the second highest electricity rates in the country according to the Energy Information Agency’s most recent data. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0185.pdf


Municipal Waiver of Interest


S.330, An Act Relating to Taxation – Levy and Assessment of Local Taxes, allows municipalities to waive interest on overdue taxes on commercial properties. This is a simple bill that gives cities and towns the option to treat commercial property taxes in the same way they can treat residential property taxes today. S.330 is enabling legislation allowing municipalities to waive interest
on one quarter of overdue commercial property tax if:
1) The property has been owned for the five years immediately preceding the tax payment that is overdue
2) The taxpayer requests the waiver in writing
3) The taxpayer made timely payments of taxes for the five years immediately preceding the tax payment
4) The payment that is overdue was issued less than two years prior to the date of the request for the waiver
5) The waiver of interest is $500 or less https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0330.pdf
RI New Qualified Jobs Incentive Act
S.613, An Act Relating to Taxation – Rhode Island New Qualified Jobs Incentive Act 2015 provides more time to file documentation to prove the business has met the employment requirements under the act. Under current law, a business has three years following the date of approval to submit the paperwork. S.613 allows for the submission electing a waiver of tax credits for the first year of eligibility for a tax credit. Secondly, the bill also allows businesses awarded tax credits between October 1, 2018 and December 31, 2023, to submit documentation until December 31, 2025, provided the business can show evidence that withholding payments were made. Lastly, a business that was approved for tax credits under the program by the board of directors of the commerce corporation and was unable to meet its employment commitments and did not receive any tax credits under the program, may submit a new application for tax credits to the commerce corporation. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0613.pdf
Rebuild RI Tax Credit
S.1002, An Act Relating to State Affairs and Government – Rebuild RI Tax Credit, expands the maximum project credit allowed under the Rebuild Rhode Island tax credit program to include sales and use tax exemptions for qualified development projects related to affordable and workforce housing. The current program aims to bridge the funding gap for real estate projects that are unable to secure sufficient financing through traditional means. The program provides redeemable tax credits to eligible projects. These tax credits can cover up to 20% of project costs, and in certain cases, up to 30%. Rebuild RI approved projects may also be exempt from sales tax on construction materials, furnishings, and equipment. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1002.pdf
Testimony on all these bills can be submitted to [email protected]
Wednesday, May 21st
Worldwide Wealth Tax
The House Finance Committee is meeting at 4:00 p.m. in room 35. H.6290, An Act Relating to Taxation – Wealth Tax is on agenda. This new bill places a 1% tax on “world-wide” wealth of Rhode Island individual residents and businesses domiciled in the state. Beginning January 1, 2026, for taxes due in 2027, a wealth tax is imposed equal to one percent (1%) multiplied by a resident's/business’s taxable worldwide wealth. "Worldwide wealth" is defined as “the fair market value of all intangible assets, or portion thereof, owned or controlled by a resident.” The first $25 million of assets is exempt from taxation; however married individuals and domestic partners must file together and each claim one-half of the exemption unless they seek a special exemption from the state. Nonfinancial assets are also not subject to tax which includes: worldwide wealth of artificial persons associated with the individual resident, debts of the United
States, trademarks, trade names, patents, financing agreements, private nongovernmental personal service contracts, nongovernmental athletic or sports franchises or agreement, nonfinancial intangible assets, stock of a federal reserve bank or national mortgage association, and property subject to ad valorem taxation (real property or personal property subject to tax already). The legislation includes a tax penalty of 50% of the underpayment if the taxpayer substantially underestimates the tax, and a 30% penalty in all other cases. This 1% worldwide wealth tax appears to be a tax in addition to any other tax owed. H.6290 does include a credit if the taxpayer is subject to a substantially similar tax from another state on the same assets. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6290.pdf
To submit testimony on H.6290, email it to [email protected]
Thursday, May 22nd
Junk Fee Bill to Be Amended as Requested by the Chamber
H.5247, An Act Relating to Commercial Law – Deceptive Trade Practices, is scheduled for a vote, but in a SubA form. The original bill attempted to address what is often referred to as “junk fees,” and the misleading of customers by stating one price for a good or service and then adding random fees after the order is complete. The legislation created a new section to the unfair deceptive practices act, declaring it is an unfair practice to offer goods or services to the public and fail to include a notification disclosing any fees including the “nature and purpose” of those fees. H.5247 SubA, is limited to the “Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of federal law 16 C.F.R. Part 464.” This version of the bill resolves the concerns expressed by the Chamber. The SubA can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/H5247A.pdf
The following new bills have been filed:
House Bill No. 6334 (Providence City Council) Kislak, Morales, Potter, Diaz, Slater, Ajello, Speakman, Hull, J. Lombardi, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES--LIABILITY AND COMPUTATION (Authorizes municipalities to impose a ticket tax on ticket sales for venues large enough to hold at least eight hundred (800) patrons, seated, of two dollars ($2) per ticket. The tax shall be redistributed to the locality where the venue is located.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6334.pdf
House Bill No. 6344 Voas, Chippendale, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- THE RHODE ISLAND LIMITED LIABILITY COMPANY ACT (Replaces the existing limited liability company act with a newer and updated model act.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6344.pdf House Bill No. 6346 Carson, AN ACT RELATING TO CRIMINAL OFFENSES -- IDENTITY THEFT PROTECTION ACT OF 2015 (Amends the Identity Theft Protection Act by eliminating current definitions and establishing new definitions. This act also raises the penalty provisions for violations.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6346.pdf
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Frank Smith Insurance Welcomes Kendra Hoesterey to their Team

5/15/2025

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Picture
 ​We at Frank Smith Insurance and Real Estate are proud to welcome Kendra Hoesterey as the newest member of our growing team. Kendra joins us as a Personal Lines Producer, bringing with her two years of valuable experience in the insurance industry. Kendra is passionate about building lasting relationships with her clients and is committed to helping individuals and families navigate the often complex world of insurance. She believes in a client-first approach, providing thoughtful guidance and clear education to ensure her clients feel confident in their coverage choices. Her dedication to service and her enthusiasm for connecting with people make her a great fit for our team and the communities we serve. We’re excited for our clients to get to know Kendra and experience the care and professionalism she brings to her role. "We're thrilled to welcome Kendra to our small yet mighty growing team here at Frank Smith Insurance and Real Estate,” stated Jennifer Preston, FSI President. “With her enthusiasm for client service and commitment to building meaningful relationships, I have no doubt she'll be a welcome addition to our mission of putting clients first." Please join us in welcoming Kendra Hoesterey to Frank Smith Insurance and Real Estate!  ​https://www.franksmithinc.com/

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Under the Dome: Advocacy in Action

5/13/2025

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​Revenue Estimating Conference Adopts Final Numbers

The Revenue Estimating Conference (REC) completed its work Friday afternoon after six hours of debate. For FY25, the conferees adopted revenues of $5.6176 billion which is $61 million more than anticipated during the November 2024 REC. Personal Income Tax collection accounted for $37.1 million of the addition revenue, showing Rhode Island has not experienced the personal income decline that some other states have seen. Sales and Use Taxes collections were down $22 million. Business Corporations Taxes were up $3 million. Taxes on Public Utilities Gross came in $9.7 million higher than anticipated; Insurance Company taxes were up $8.5 million and Lottery revenues were up $7.1 million. Caseload total costs were also down $39 million.

While that is good news, the picture for the upcoming fiscal year is more challenging. Total estimated general revenues for FY2026 are $5.4863 billion ($131.3 million less than FY2025). Income Tax collections are estimated to increase another 2.5% to $1.999 billion. Business Corporate taxes and Financial Institution taxes are expected to go down while the Public Utilities Gross tax is estimated to bring in slightly higher revenue in FY2026. Once again, sales tax collections are expected to decline. Lottery revenues are expected to increase only by 1.9%. Caseload estimates for FY2026 are $260 million more than originally estimated; however, some of that increase - $197.8 million - is currently booked as qualifying for federal fundings. Whether that will change is a fair question. Governor McKee’s budget, as originally proposed, is a $5.7431 billion budget, $256.8 million more than revenues predicted to be available next year. The Governor’s budget also included a digital tax that is unlikely to bring in immediate revenue based on the experience of other states that adopted the tax. They are not collecting it as they wait for court challenges to play out.

Budget meetings between the House and Senate are already underway. They hope to have a budget passed by the third week of June. The House Fiscal staff will be providing an overview of the REC and budget process Wednesday at 4:00. It can be livestreamed at https://capitoltvri.cablecast.tv/

Bullying Bill Passes in SubA Form

The Workplace Psychological Safety Act (often referred to as the bullying bill) was passed in a SubA form by the Senate Labor & Gaming Committee. Although amended, the changes were minimal. The bill exempts out businesses with fewer than fifteen employees. Covered businesses would still have to implement training programs, adopt complaint processes, maintain records of complaints, and are not permitted to use mediation or arbitration to deal with allegations unless agreed to by the individual submitting the complaint. Damages still include punitive damages, compensatory damages, injunctive relief, or up to $5,000 per complaint depending upon the circumstances. The SubA requires a regulatory review of the law five years after enactment. Workplace bullying includes the following activities: “Conduct may include false accusations, sabotage of work performance, consistent ignoring or ostracism, removal of major responsibilities, consistent unreasonable workloads, excessive monitoring, consistent micromanagement, persistent hypercriticism, impossible deadlines, pressure to engage in
unethical behavior or give up rights or benefits, retaliation for speaking up, or repeated verbal abuse.” https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0959A.pdf


This Week At the State House

Monday, May 12th
Senate Committee on Artificial Intelligence & Emerging Tech

AI Regulations for “Sensitive” systems – Hiring, Education, Lending, Housing…

The Senate Committee on Artificial Intelligence & Emerging Tech is meeting on Monday at 4:00 in room 313. S.627, An Act Relating to Commercial Law – Artificial Intelligence Act establishes regulations with the intent to ensure the ethical development, integration, and deployment of high-risk Artificial Intelligence (AI) systems, particularly those influencing consequential decisions in areas like employment, education, lending, housing, healthcare, and legal services. It would require developers, integrators, and deployers to use reasonable care to prevent algorithmic discrimination, implement risk management policies, conduct regular impact assessments, and provide transparency regarding the use of AI systems. Starting October 1, 2025, developers would be required to disclose known risks to the attorney general and affected parties, while deployers are required to notify consumers when AI is used in decision-making and offer avenues to appeal adverse outcomes. The act would further mandate that synthetic digital content generated by AI be clearly marked, with exceptions for informational content. Additionally, this act would provide exemptions for AI systems governed by equivalent federal standards, used for internal business purposes, or developed for specific federal agencies. The attorney general would hold exclusive enforcement. If you have concerns about this legislation, please contact the Chamber. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0627.pdf

Proposed Revisions to the Identity Theft Act of 2015

S.1037, An Act Relating to Criminal Offenses – Identity Theft Act of 2015, was introduced in the Senate Friday, May 9th and is scheduled for hearing Monday, May 12th . The bill changes “personal information” to “personally identifiable” information. It requires businesses to implement controls and procedures to restrict and manage access to the data “in transit and at rest.” Companies that disclose data to third parties must now have a written contract stating the third party will maintain reasonable security measures. S.1037 adds subcontractors of the third party as well. Lastly, the bill increases the penalties for reckless violations of the Act from $100 per record to $1000 per record; and for knowing and willful violations, the penalty increases from $200 per record to $2000 per record. S.1037 gives the courts the ability to impose additional penalties as it deems warranted under the circumstances. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1037.pdf
Testimony for either bill may be submitted to [email protected]

Tuesday, May 13th

House Environment Committee Focuses on Packaging and Paper Recycling

H.6205, An Act Relating to Health and Safety – Extended Producer Responsibility for Packaging and Paper Act https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6205.pdf will be heard in the House Committee on Environment & Natural Resources At the Rise in the House Lounge. This bill is one of three bills related to the debate over the adoption of a bottle redemption bill and is the companion to S.939 that was heard last week. For two years, a joint House and Senate commission has been meeting to debate the pros and cons of adopting a bottle deposit and redemption bill. The members of the commission did not reach consensus, so three bills were introduced last week – a bottle deposit bill with a ten-cent fee per can/bottle; a bottle deposit combined with an extended producer responsibility program for most types of packaging (EPR); and a bill focusing only on EPR. H.6205, which focuses only on EPR was put forward by the beverage industry.

H.6202, An Act Relating to Health and Safety – Beverage Container Recycling Act, calls for a ten-cent deposit on almost all beverage containers. The bill envisions the creation of recycling centers, not a requirement placed on retailers to redeem beverage containers, with penalties placed on a beverage producer organization if recycling target rates are not met. Deposits that are not redeemed by consumers are to be used for recycling education programs, the creation of additional recycling centers and other activities required as a result of the deposit and redemption program. The 27-page bill can be found at https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6206.pdf

H.6207, An Act Relating to Health and Safety combines both a ten-cent bottle deposit on most beverages (soda, water, juices, alcohol, etc.) and an EPR program. If your business produces and packages products, sells products under a brand, or imports products that are unbranded, please read H.6207. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6207.pdf

Testimonies for any of these bills should be submitted to [email protected]

Senate Finance Hears Tax Penalty Waivers

Tuesday, At the Rise in Room 211, the Senate Finance Committee will take testimony on two bills addressing potential waivers to tax penalties.
S.656, An Act Relating to Taxation – Rhode Island Tax Amnesty Act of 2017, authorize the tax administrator to waive interest and penalties on delinquent taxes paid in full during a one-week amnesty period each fiscal year. The bill would reinstate a suspended driver’s license upon payment in full. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0656.pdf

S.657, An Act Relating to Taxation – Rhode Island Tax Amnesty Act of 2017, has the same waiver of interest and penalties, but does not include the reinstatement of a suspended driver’s license. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0657.pdf
Testimony may be submitted to [email protected]


Wednesday, May 14th

House Budget Update

The House Finance Committee will receive a budget update from the House Fiscal Staff at 4:00. Live streaming is available at https://capitoltvri.cablecast.tv/

Weapons Hearing Day

If you plan to be at the State House Wednesday, be aware that the Senate Judiciary Committee will be hearing bills related to weapons At the Rise. These issues often bring crowds of people, so plan accordingly.


Thursday, May 15th

Hearing on TDI Taxes and Benefits in the Senate Finance Committee

S.974, An Act Related to Labor and Labor Relations – Temporary Disability Insurance – Contributions, will be heard, At the Rise, in Room 211. This bill, sponsored by the new Senate President Val Lawson, increases the taxable wage base for TDI from $38,000 to $100,000. The bill also increases the TDI benefit rate from 4.62% to 5.38% for calendar year 2026 and to 5.77% starting January 1, 2027. S.974 also increases Temporary Caregiver Insurance benefits from the current eight weeks to ten weeks beginning January 1, 2027, and further to twelve weeks beginning January 1, 2028. Testimony may be submitted to [email protected]


The following new bills have been filed:
Senate Bill No. 1037 Gu, Zurier, Burke, Ciccone, Urso, DiPalma, Vargas, Paolino, Tikoian, Lawson, AN ACT RELATING TO CRIMINAL OFFENSES -- IDENTITY THEFT PROTECTION ACT OF 2015 (Amends the Identity Theft Protection Act by eliminating current definitions and establishing new definitions. This act also raises the penalty provisions for violations.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1037.pdf
Senate Bill No. 1038 Euer, Mack, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- ENVIRONMENTAL JUSTICE ACT (Establishes requirements which would have to be met by an applicant prior to the issuing of
permits for an activity that would have an environmental impact on or would increase the cumulative impacts on an environmental justice area.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1038.pdf
Senate Bill No. 1040 Euer, Bell, Gu, AN ACT RELATING TO TAXATION -- TAX ON GAINS FROM THE SALE OR EXCHANGE OF REAL PROPERTY (Creates new tax on gains from sale or exchange of real property held for short periods of time, 6 years or less, establishes a comprehensive framework to calculate and implement enforcement and provides imprisonment and/or fines for those who evade taxes.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1040.pdf
Senate Bill No. 1045 Tikoian, Ciccone, Felag, LaMountain, Sosnowski, Gallo, DiPalma, Patalano, Burke, Appollonio, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Exempts subchapter S corporations in the first year of existence from paying the minimum tax.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1045.pdf


Senate Bill No. 1058 Ciccone, Burke, Patalano, Tikoian, Raptakis, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WAREHOUSE WORKER PROTECTION ACT (Requires employers to provide each employee of a warehouse distribution center, upon hire, with written description of quotas applicable to the employee within defined time periods and adverse employment action for failure to meet the quota.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1058.pdf
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Under the Dome: Advocacy in Action

5/5/2025

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Revenue Estimating Conference Receives Economic Forecast
Last week the Revenue Estimating Conference (REC) received the economic forecast from Moody’s Analytics which is used to assist the conferees in gauging income potential for FY26 and FY27. Not surprisingly, the presentation started with an acknowledgement of the uncertainty related to the federal tariffs and the potential economic changes that could result. If the tariffs are implemented at the full 19% increase as first proposed, Moody’s estimates the national GDP will decrease one to one and a half percent. That said, they do believe a “pivot” will likely occur as businesses and households pull back on spending and as tariff negotiations continue. Each one dollar in personal wealth tends to increase spending by two cents. While that seems small, it adds up quickly.
For Rhode Island, employment currently remains solid, outpacing Massachusetts, Maine and Connecticut in New England. Moody’s does anticipate an increase in the jobless rate as growth in employment declines. Moody’s estimates the state unemployment rate will hit five percent by the end of the year.
The economists pointed out that business costs are high in Rhode Island - citing labor, taxes and particularly energy. Not only do businesses suffer from significantly higher energy costs, but residential energy rates are also high – the second highest in the country (Hawaii is number one). Tariffs will increase other costs for businesses.
“Consumers don’t have it much better,” said Kumael Bilgrami from Moody’s Analytics. Rhode Island ranks higher on the expense side compared to other New England states, but wage growth has been above the US average. Boston’s wage growth is worse than Rhode Island; and since Boston is the biggest “out-of-state” employer for Rhode Islanders, this provides another challenge.
Longer term issues the state should consider is the expected decline in population through 2029. Rhode Island has experienced outward migration since 2006. Top destinations for exiting Rhode Islanders are Florida, Texas, Connecticut, South Carolina, North Carolina, New Hampshire and Maine. International migration into the state has held back the population decline but recent changes in federal policy could soften this migration pattern. Moody’s confirmed Massachusetts is losing residents to Rhode Island because the housing costs are cheaper than Boston.
Lastly, the state ranked in the top ten states for receiving federal funds for items such as clean energy and Medicaid. Federal policy changes are expected to impact Rhode Island more than other states for this reason.
The REC adopted the following changes to the November conference expectations:
· Smaller growth in wages and salaries
· Higher growth in personal income
· Smaller growth in dividends, interest and rent growth
· Higher personal consumption expenditures in FY26 but lower in FY27
· Higher unemployment rate
· Higher CPI
· Lower Corporate profits growth in FY26 but higher in FY27
These changes will affect the revenue estimates that will be adopted Friday, May 9th.
This Week At the State House
Tuesday, May 6th
House Finance – Taxes and Economic Programs
The House Finance posted an agenda of bills to be heard at the Rise (approximately 4:30) in Room 35.


H.5473, An Act Relating to Taxation – Personal Income Tax, adds an additional 3% personal income tax on taxable income over $430,000, starting January 1, 2026. However, the amount of $430,000 is to be adjusted for inflation going back to the value of a dollar in 2011. Once the inflation adjustment is made, the 3% increase actually applies to taxable income over $625,000 in 2026 and then is adjusted upwards each year thereafter. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5473.pdf


H.5531, An Act Relating to Taxation – Rhode Island Qualified Jobs Incentive Act 2015, sunsets the economic program July 1, 2025. The Governor’s proposed budget calls for sunsetting the program December 31, 2026. Rhode Island’s Qualified Jobs Incentive Program offers businesses an opportunity to expand their workforce while reducing costs. Companies that create new positions or relocate jobs to the state can receive annual, redeemable tax credits for up to ten years, with credits of up to $7,500 per job per year. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5531.pdf


H.5753, An Act Relating To Taxation – Business Corporation Tax, exempts a newly formed Sub Chapter S corporation from paying the minimum corporate income tax in its first year of existence. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5753.pdf
To submit testimony on any of these bills, email it to [email protected]
Senate Commerce – Grocery Store Checkout Lanes
The Senate Commerce committee is scheduled to vote Tuesday (At the Rise) on S.85, An Act Relating to Commercial Law – Grocery Stores. This bill limits grocery stores, defined as a “retail store in the State of Rhode Island that earns the majority of its gross income from the retail sale of groceries and sells primarily household foodstuffs for off site consumption,” to have no more than six self-checkout stations. If the business does have self-checkout stations, it must also open one manual checkout station for each self-checkout station. The Attorney General is
given authority to enforce the law under S.85. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0085.pdf


Senate Finance – Economic Programs
Senate Finance is taking testimony (At the Rise in Room 211) on S.111, An Act Relating to Taxation – Rhode Island Qualified Jobs Incentive Act 2015. This is the identical companion bill to H.5531 (see above) Testimony for the Senate bill can be emailed to [email protected]
Wednesday, May 7th
Senate Labor – Bullying Bill Returns
The Workplace Psychological Safety Act (often referred to as the bullying bill) is back in the Senate Labor & Gaming Committee. A vote was taken last week on the Senate floor to recommit the bill to committee. The bill is expected to be amended in the committee Wednesday, At the Rise, (the Senate is now holding Wednesday sessions) and passed again. The SubA version has not been posted yet. The bill that passed, while well meaning, would place employers in an extremely difficult position and would result in many lawsuits as well as endless investigations. The definition of "psychological abuse" under this bill includes actions such as “mistreatment that has the effect of hurting, weakening, confusing, or frightening a person mentally or emotionally.” These terms are very subjective. They can mean different things to different people, leaving everyone wondering what they can and cannot do or say in the workplace. Watch next week for further details on the expected SubA.


Senate Environment & Agriculture – Packaging


A great deal of attention is focused on efforts to pass a bottle deposit and redemption bill, an environmental producer responsibility (EPR) bill, or a combined bill. The proponents want to increase the recycling rate of bottles; certain members of the business community want producers of packaging to pay money into a new, advanced recycling system; and another group of businesses worry that the all of the proposals will increase the cost of products. On Wednesday, At the Rise in the Senate Lounge, the following bills will be heard:


S.996, An Act Relating to Health and Safety combines both a ten-cent bottle deposit on most beverages (soda, water, juices, alcohol, etc.) and an EPR program. If your business produces and packages products, sells products under a brand, or imports products that are unbranded, please read S.996 The 57-page bill can be reviewed at https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0996.pdf


S.997, An Act Relating to Health and Safety – Beverage Container Recycling Act, calls for a ten-cent deposit on almost all beverage containers. The bill envisions the creation of recycling centers, not a requirement placed on retailers to redeem beverage containers, with penalties placed on a beverage producer organization if recycling target rates are not met. Deposits that
are not redeemed by consumers are to be used for recycling education programs, the creation of additional recycling centers and other activities required as a result of the deposit and redemption program. The 27-page bill can be found at https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0997.pdf
Testimony for S.996 or S.997 may be emailed to [email protected]




The following new bills have been filed:
House Bill No. 6282 Cotter, Carson, Donovan, Potter, Morales, Serpa, Ajello, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- GROCERY STORES (Requires grocery stores to specifically limit the number of self-service checkout units to six (6) units per location. The consumer protection unit of the department of attorney general would have authority to enforce these restrictions.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6282.pdf House Bill No. 6290 Potter, Cotter, Cruz, Giraldo, Stewart, Tanzi, Kislak, Ajello, AN ACT RELATING TO TAXATION -- WEALTH TAX (Imposes a wealth tax on Rhode Island individuals and entities at a rate of one percent (1%) of worldwide wealth.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6290.pdf
Senate Bill No. 996 McKenney, Tikoian, Britto, Lawson, Sosnowski, LaMountain, Murray, Gu, Vargas, AN ACT RELATING TO HEALTH AND SAFETY (Provides extended producer responsibility for packaging and paper, recycling of beverage containers, and provides general provisions for oversight of single-stage producer organizations.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0996.pdf
Senate Bill No. 997 Valverde, Sosnowski, Lawson, McKenney, Gu, Vargas
ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINERS RECYCLING ACT (Establishes the Beverage Container Recycling Act) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0997.pdf
Senate Bill No. 1002 Bissaillon, LaMountain, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- REBUILD RHODE ISLAND TAX CREDIT (Amends provisions related to the maximum project credit allowed under the rebuild Rhode Island tax credit for certain qualified development projects.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1002.pdf
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