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​​Chamber Connections BLOG

Under the Dome: Update from the Chamber Coalition

6/27/2022

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​Legislature Adjourns for 2022
 
The Legislature adjourned at 1:00am on Friday, June 24th, following a few hours of impasse over the Speaker’s affordable housing package and the Senate leadership’s desire to name a CCRI building after former Senate President Teresa Paiva Weed.  The housing package did pass; the naming of the building will be an issue for another year.
The Senate passed the budget and transmitted it to the Governor who is expected to sign it this week.
Over the next couple weeks, the legislature will transmit bills to the Governor for his consideration.  Should he veto any bill, the legislature will then decide whether to come back into special session to address those vetoes.  Once that procedure is complete, the Chamber will send out a special edition of this publication to provide a list the new laws and links to those laws for your use.
The end of session includes the reading of a resolution for each house and senate member that has decided not to run for re-election.  This year provided one surprise as Minority Leader Blake Filippi of Charleston/New Shoreham/South Kingstown/Westerly announced he will not run again.  He immediately submitted a letter of resignation as Leader. Representative Michael Chippendale of Coventry/Foster/Glocester was named the new Minority Leader with Representative David Place of Burriville/Glocester as Minority Whip.
 
Chamber Legislative Wins
  1. Unemployment Trust Fund will be replenished $100 million.  While this does not fully restore the fund to pre-pandemic levels, it is expected to decrease the UI tax rate by one schedule.  Keep in mind that most employers have experienced an increase in wage bases; the rate may go down, but the overall tax may stay the same or increase.
  2. The legislature did NOT pass the wage theft/misclassification felony bill.
  3. The legislature did NOT pass any new significant labor bills like minimum wage, family leave expansion, employer contributions to TDI or TCI, workplace bullying, etc.
  4. No tax increases were included in the budget
  5. A last-minute bill to place an assessment on self-insureds and health insurance premiums to pay for psychiatric services for Rhode Island residents (currently paid for with a federal grant until June, 2023) did NOT pass.
  6. Efforts to place additional data transparency requirements on businesses that use the internet for customers did NOT pass.  This issue may be discussed over the fall with stakeholders.
 
New Laws of Note
H.8056SubA and S.2666SubA, Acts Relating to Labor and Labor Relations – Department of Labor and Training – Digital Credentialing were signed into law June 21st.  Starting July 1, 2023, the DLT will be required to obtain verified electronic credentials such as certifications, licenses, degrees and training completion certificates issued by workforce and training programs in addition to any paper-based credentials that it receives from participants. law22115 (state.ri.us) law22116 (state.ri.us)
 
Also signed on June 21st were H.7863SubA and S.2816SubA, Acts Relating to Labor and Labor Relations – Employment Security.  These laws extend the increase in the total amount of earnings a partial-unemployed insurance claimant can receive before being entirely disqualified for benefits and an increase in the amount of earnings disregarded when calculating a weekly benefit rate.  This COVID-19 program was set to expire June 30, 2022.  It is now extended to June 30, 2023.  law22117 (state.ri.us)  law22118 (state.ri.us)
 
2022 Campaign Update – How Can You Help
With the session now over, the campaign season will ramp into high activity mode.  If your Representative or Senator (or a business-friendly candidate running for a seat) has been helpful to business, we ask you to consider helping them in the following ways:
  1.  After filing for candidacy, which takes place this week, they must collect signatures in order to qualify to be on the ballot – consider helping them collect signatures.
  2. They will be walking door to door to greet residents.  Volunteer to walk with them or to introduce them to your neighbors.  This is extremely helpful to a candidate.
  3. Offer to place a campaign sign on your property.
  4. Volunteer to work on Primary Day – September 13th.  This could mean holding a sign at a polling place, making phone calls to those who have not yet voted, driving voters to the polls, etc.
  5. Make a donation to the individual’s campaign to help them pay for mailers, signs, postage, etc.  (this helps, but your time is even more valuable if possible)
Any of these efforts could help a business-friendly candidate win their way to the state house.  T


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Under the Dome: Update from the Statehouse

6/21/2022

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​Session Enters Final Week - Again
 
The House passed the budget last Thursday night. The Senate Finance Committee is scheduled to vote on it Tuesday at 4:00 pm.  Barring a breakdown between the three branches of government, this should be the last week of legislative session.  The House 48-hour posting rule changes after the 50th legislative day of session, which has passed.  The Rule states, “The time requirements of this section shall not apply to House bills returned from the Senate with amendment, or, after the 50th legislative day, to any bill originating in the Senate.”  So many bills are eligible to be posted without 48-hour notice, although the leadership does try to give notice of postings in order to aid transparency.  The Senate rules do not change after the 50th day.  They continue to read, “The rule shall not apply to bills previously passed by the senate and amended by the house.”  These rules aid in the effort to move bills more efficiently in the final days of session.
 
So far this week votes and hearings are posted for Tuesday:
 
The House State Government and Elections Committee is meeting Tuesday at 2:30 pm to pass both H.7743 and S.2345, Acts Relating to Motor Vehicles – Parking Facilities and Privileges.  Unless a SubA is posted prior to the vote, these bills require all large parking lots (with a few exceptions, including industrial zoned properties) to include designated spots designed for persons transporting young children, under the age of three, and baby strollers.  Lots with 101-500 spots must designate two spots; lots with 501-1000 spots must designate three spots; and lots with more than 100 spots must add one additional spot for each 500 parking spaces over 1000.  Exemptions to this rule include single-family homes, duplexes, multifamily residences and industrial zoned properties.  The bill contains specifications for the dimensions of the spots as well as the location.  Property owners have two years from the date of enactment to comply.  The bills can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2345.pdf http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7743.pdf
 
The House Labor Committee meets at 3:30pm to pass a bill that bans employers from keeping any portion of an employee’s tip with exceptions for credit card charges associated with the tip.  A SubA has been posted, making the language mirror current federal law.  The bill number is H.7510. The SubA can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7743.pdf
 
The Senate Judiciary Committee is scheduled to vote on S.2705 and H.7363 SubA, Acts Relating to State Affairs and Government – Justices of the Peace – Uniform Law on Notarial Acts. These bills would continue to recognize remote notarizations that became necessary and widely used during the pandemic. Final language is still be negotiated and further amendments are expected.  The bills can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2705A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7363A.pdf
 
One hearing of note will take place in House Finance Tuesday at 3:00pm in room 35.  H.8354, An Act Relating to Insurance – Psychiatry Resource Network Funding Act was introduced June 17th and is now scheduled for a hearing on the 21st.  The bill creates the Rhode Island psychiatry resource network for the primary purpose of equitably determining and collecting assessments for the cost of psychiatry resource networks in the state which are not covered by other federal or state funding.  An amount needed to pay for the program will be calculated each year and assessed on the following entities:
  • Writers of individual, group or stop loss insurers
  • HMOs
  • Third-party administrators
  • Preferred provider agreements
  • Fraternal Benefit Societies
  • Organizations managing claims for a self-insured entity
  • Self-insurers that provide an employee or group benefit plan with no claims manager
  • Governmental entities that provide employee or group benefit plan with no claims manager
  • Any entity, administrator or sponsor of any health care costs sharing program
 
The bill can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8354.pdf
 
If you wish to submit written testimony, send it to HouseFinance@legislature.gov  Testimony should be sent by noon on Tuesday.  Please write your name, bill number and position in the Subject line of the email.
 
 
A Few New Laws Added to the books:
 
S.2418SubA/H.6652 are now 2022 Public Laws Chapters 82 and 81. Any business that wishes to hire a child, that requires a limited work permit under law, please note that the child must certify to the Department of Labor that the child has successfully completed a training program created by the department which addresses workers' rights, workplace health and safety, and workers' compensation before a permit can be issued. The program is up to three hours long and is anticipated to be available virtually.  While the law is effective today, the Department needs time to create the program and implement it.  The law can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2418A.pdf
 
H.7511, now 2022 Public Law Chapter 73, eliminates the ability of the Department of Labor and Training to approve wages below minimum wage for person impaired due to a mental or physical disability. The new law can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7511.pdf
 
Are You Considering Running for Office?
 
If you are considering running for a General Assembly seat – House or Senate - the deadline is approaching quickly.  The Chamber can be most effective when business people run for office.  Declarations for candidacy must be filed June 27th 28th or 29th at the Local Board of Canvassers in the City or Town where you are registered to vote.
 
The Declaration of Candidacy is the document you sign to start the process of becoming a candidate. You “declare” yourself as a candidate for a particular office and if you wish to run as a party candidate, you also “declare” yourself to be a member of that party. All candidates for all public and party offices must file a Declaration of Candidacy.
 
More information can be found at Welcome to your Voter Information Center 
 
 
 
New Bill Introductions:
 
 
 
 

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Under the Dome - Update from the Statehouse

6/13/2022

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Session Enters Final Week
 
With the budget passed by the House Finance Committee, the full House scheduled to vote on the budget Thursday, and bills passing fast and furiously, the General Assembly appears to be heading into the final week of session.  The House has posted a floor calendar for Tuesday through Saturday in the event extra days are needed.  The Senate has posted a floor calendar for Tuesday, but expected to add days as needed.  Also notable, is that the 48-hour committee posting rule does not apply to many bills after the 50th day of session, so hearings can pop up at any time.
 
Most of the bills posted for vote or hearing as of Sunday night are bills legislators had introduced earlier this year that found their way into the budget document.  It is not unusual to pass the bills to recognize the legislators for their hard work in getting an initiative passed into law.
 
Tuesday Hearing – Senate Health and Human Services, at the Rise in room 211.
 
One bill, unrelated to language contained in the budget, is S.2769, An Act Relating to Health and Safety – Comprehensive Health Insurance Program.  This 92-page bill creates a universal, single-payer health insurance system in Rhode Island.  It sets rates, expands Medicare and Medicaid coverage, and increases paid leave to 160 hours a year.  The sponsors anticipate paying for the program with increased efficiencies, federal dollars, state dollars, private grants, individual contributions in lieu of health insurance premiums, and a 10% payroll tax to be paid 80% by the employer and 20% by the employee.  Self employed individuals would pay 10%.  The bill allows the state to adjust the tax rate so that higher income bracket individuals pay more and lower income bracket individuals pay less.  The bill is sponsored by Senator Sam Bell of Providence.
 
 
 
UI Trust Fund Big Win For the Chamber!
 
The House Finance Committee recommended passage of the FY2023 budget.  Included in the $13.6 billion plan (which includes expenditures in outlying years) is a $100 million infusion of money into the Unemployment Trust Fund that was heavily depleted during the pandemic.  The Chamber advocated strongly for this allocation.  We wish to thank all the legislators who expressed support for the inclusion of the funds and, in particular, to Senate Finance Chairman Ryan Pearson and Representative Carol McEntee for their tireless efforts.  The $100 million is expected to reduce the UI tax rate for 2023 (keep in mind your taxable wage base may likely increase due to the increase in employee wages).  Thank you to everyone who communicated with legislators on this issue!
 
What Else is in the Budget?
 
The full budget can be viewed by clicking on the House Finance Agenda for June 9th  State of Rhode Island General Assembly (rilegislature.gov)  A few of the highlights are listed below:

  • No tax increases
  • Corporate Minimum Tax remains at $400.  The Governor had proposed to lower it to $375.
  • $230 million to complete the vehicle tax phase-out this year – one year early.  Vehicle owners will get no vehicle excise tax bills this summer, except for East Providence residents who pay the tax one year in arrears.
  • $1 million to support initiatives focused on recruiting, and credentialing the workforce.  This money can also be used to provide technical assistance for technology purchases to individuals with developmental disabilities in accordance with a federal consent decree.
  • $6 million to support a healthcare workforce development initiative to address staffing shortages through recruitment efforts and talent development for existing staff.  The program seeks to place 200 participants, including 100 new hires in a training program.
  • $2.3 million to enhance improvements to Division of Taxation business processes and taxpayer services ($750,000 in FY2023 and $1.5 million in FY2024)
  • $700,000 for the Local Agriculture and Seafood Act grant program which provides grants to local businesses to support growth, development and marketing of local food and seafood in the state.
  • $5 million for Main Street Revitalization to award loans, matching grants and other forms of financing to enhance sidewalks, signage and lighting in order to create an attractive environment in local business districts.
  • $43.8 million for a one-time child tax credit of $250 per child up to three children, for Rhode Islanders making up to $100,000 for an individual and $200,000 for joint filers.  This credit is estimated to impact roughly 190,000 filers.  According to the House Fiscal Office description, “Most checks would be issued in October as long as taxpayers file their 2021 returns before September 1.  Late filers have until October 31 to qualify.  A child is defined as a dependent under the age of 18 in the calendar year 2021.”
  • $250 million for housing, including $10 million in down payment assistance to qualified first-time home buyers
  • $30 million for the construction of a new health laboratory
  • $108 million for Eleanor Slater Hospital
  • $850,000 for the World Ocean Race in Newport July, 2023.
  • Cannabis – The new cannabis program is expected to generate $6.6 million, ($2.9 million from the 7% sales tax, $4.1 million from the 10% excise sales tax, loss of $.4 million from elimination of plant tag and registration cards).  The State is expected to spend $5.6 million to run the program for a net revenue gain of $1 million.
  • $2.5 million for a free fare bus route pilot program along the R-Line.  The program is scheduled to begin September 1, 2022 and end August 31, 2023.  RIPTA is required to track ridership data and submit a report to the state by March 1, 2024.
  • $75.2 million for the Highway Improvement Program that will be used to match federal dollars under the Infrastructure Act.
 
Other policy-related items included in the budget are:

  • Article 6 gives municipalities and fire districts the authority to establish a tax exemption for tangible personal property.
  • Electronic filing requirements for businesses with an annual tax liability of $5,000, or whose annual gross income is over $100,000.  Beginning January 1, 2023, covered entities must remit taxes electronically or otherwise be subject to a fee equal to 5% of the tax liability or $500, whichever is less (unless there is reasonable cause for failure).  Failure of a covered entity to file a tax return electronically will result in the assessment of a $50 fee unless reasonable cause exists.
  • Interest on delinquent payments – Current law requires the tax administration to assess interest equal to prime plus 2% provided that the rate is not less than 18% nor more than 21%.  The budget allows the Tax Administrator, beginning January 1, 2023, to go as low as 12% (provided it is equal to prime plus 2%) while keeping the cap at 21%.  The rate applied to trust fund taxes remains at 18% - 21%.
  • Extends the sunset clauses for a number of Economic Development programs to December 31, 2023:  Rebuild RI Tax Credit, RI Tax Increment Financing Credit, Tax Stabilization Incentive, First Wave Closing Fund, Redevelopment Project Fund, RI Qualified Jobs Incentive Act, and Small Business Assistance Program.
  • Extends the Historic Tax Credit to June 30, 2023.
  • Adds healthcare applicants to the RI Wavemaker Fellowship program
 
 
 
Are You Considering Running for Office?
 
If you are considering running for a General Assembly seat – House or Senate - the deadline is approaching quickly.  The Chamber can be most effective when business people run for office.  Declarations for candidacy must be filed June 27th 28th or 29th at the Local Board of Canvassers in the City or Town where you are registered to vote.
 
The Declaration of Candidacy is the document you sign to start the process of becoming a candidate. You “declare” yourself as a candidate for a particular office and if you wish to run as a party candidate, you also “declare” yourself to be a member of that party. All candidates for all public and party offices must file a Declaration of Candidacy.
 
More information can be found at Welcome to your Voter Information Center 
 
 
 
New Bill Introductions:
 
Senate Bill No. 3011  McCaffrey, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Restores the original legislative intent that employees may be held individually liable for their own discriminatory conduct.)  S3011.pdf (state.ri.us)
 
Senate Bill No. 3012  McCaffrey, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES (Eliminates repealed statute references/creates mechanism for employees to enforce right to continuation of medical benefits/reinstates status and benefits after returning from being a temporary caregiver and for benefits relating to Sunday wage laws.)  S3012.pdf (state.ri.us)
 
 
 


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Under the Dome: Budget Watch

6/6/2022

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​Budget Watch
 
As of Monday morning, the House Finance Committee had not yet posted the budget for consideration.  The House may post it for consideration this week, with the hopes of completing the legislative session sometime between June 17th and June 24th.  Once the budget is passed by the Committee, it must set on the desk seven days before the full House can vote on the bill.  The Senate does not have the same rule. 
 
Last Week at the State House
 
The Senate Committee on Housing and Municipal Government voted 6-1 (Senator Rogers opposed) to recommend passage of S.2345, An Act Relating to Motor and Other Vehicles – Parking Facilities and Privileges.  S.2345 is scheduled for a full Senate vote Tuesday afternoon.  The bill requires all large parking lots (with a few exceptions) to include designated spots designed for persons transporting young children, under the age of three, and baby strollers.  Lots with 101-500 spots must designate two spots; lots with 501-1000 spots must designate three spots; and lots with more than 100 spots must add one additional spot for each 500 parking spaces over 1000.  Exemptions to this rule include single-family homes, duplexes, multifamily residences and industrial zoned properties.  The bill contains specifications for the dimensions of the spots as well as the location.  Property owners have two years from the date of enactment to comply.  The bill can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2345.pdf
 
 
This Week at the State House
 
Tuesday, June 7th
 
Health care mandates are passing quickly.  The House Health and Human Services Committee is scheduled to vote on a few bills Tuesday including H.7454, An Act Relating to Insurance – Accident and Sickness Insurance Policies.  H.7454 allows pregnant women to enroll in health insurance any time after the commencement of the pregnancy.  Coverage becomes effective the first month in which the woman submits the application.  It applies to both large and small employer plans as well as the exchange. 
 
The Senate Finance Committee is meeting at the Rise, approximately 4:30 in the Senate Lounge, to take testimony on S.2592, An Act Relating to State Affairs and Government – RI Hard Hit Liquidity Program Act.  The bill creates a $20 million RI HELP fund to provide assistance corporations, partnerships and sole proprietors that have received less than $500,000 thus far in federal assistance.  Eligible businesses must have less than $5 million in annual sales and have experienced at least a 50% drop in sales in at least three months (November, 2020 to June, 2021) as compared to November 2018 to June, 2019.  The bill can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2592.pdf
 
Green building requirements are scheduled for a vote in the Senate Committee on Housing & Municipal Government at the Rise in room 310.  S.2700, An Act Relating to Public Property and Works – The Green Buildings Act, expands the definition of public buildings under the Act to include private major facility projects.  The bill also mandates public reporting on such projects.  A “major facility project” is defined as “A building construction project larger than ten thousand (10,000) gross square feet of occupied or conditioned space; or (ii) A building renovation project larger than fifteen thousand (15,000) gross square feet of occupied or conditioned space.”  Major Projects, if this bill passes into law, would be required to comply with LEED building requirements.  Anyone wishing to submit testimony can attend in person or email written testimony to:  SLegislation@rilegislature.gov   The bill can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2700.pdf
 
 
Wednesday, June 8th
 
The House Environment & Energy Committee is expected to pass both the House and Senate versions of the plastic bag ban bills.  H.7065 and S.2446 ban retailers from supplying customers with single-use plastic bags or paper bags not made of recyclable material.  Penalties include a $100 fine for the first violation in a calendar year, $200 for the second offense in a calendar year, and $500 for the third violation or subsequent violations in a calendar year.  The bill does contain a uniformity clause, which was requested by the business community, to avoid the confusion that follows municipal adoption of additional rules.
 
 
The following new bill was filled last week:
 
Senate Bill No. 2994  Pearson, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT (Establishes the Health Spending Accountability and Transparency Act and the Rhode Island All-Payer Health Care Payment Reform Act.)  http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2994.pdf 
 
 

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