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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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Under the Dome: ​Unemployment Trust Fund Call to Action

5/31/2022

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​Unemployment Trust Fund Call to Action
 
The Chamber needs your help!  As the discussions continue over how to spend roughly $2 billion, there seems to still be some question as to whether the Unemployment Trust Fund will be partially replenished after the pandemic took its toll on the fund.  The most updated information, resulting from the first quarter tax returns, reveals that the fund has approximately $273 million in it at this time.  Remember that the fund had $500 million in it prior to the beginning of the pandemic.  Total UI payments for fraudulent claims now stands at $104 million – of which $55 million came from Rhode Island employers.  During the pandemic, the unemployment insurance tax increased two schedules – from F to H.  If the General Assembly votes to add even $100 million to the trust fund, then every Rhode Island business would see a one-schedule tax drop.  The Chamber is asking you to call or contact your State Representative and State Senator this week.  Ask them to support full replenishment of the fund, or support adding enough money to the trust fund to lower the unemployment insurance tax schedule AND to convey that support to the leadership.  Thank you for taking action!
 
 
Last Week at the State House
 
The legalization of the adult use of marijuana was signed into law May 25th.  It will take a little time for the regulations to be developed and adopted, but employers should review the statutes and to consider whether employee handbooks require updating.  Both bills were signed by the Governor (they are identical). The bills can be viewed in their entirety at:
http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7593A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2430A.pdf
 
 
The Senate Judiciary Committee passed S.2775, An Act Relating to Labor and Labor Relations – Payment of Wages.  The bill was not amended by the committee in any way.  S.2775 was introduced at the request of the Attorney General, and it designates failure to pay wages on time, failure to pay wages at time of termination, or misclassification of employees as independent contractors, as felonies subject to a prison sentence.  The full senate will vote on the bill Thursday, June 2nd.
 
The House Judiciary Committee passed H.7895, An Act Relating to Courts and Civil Procedures – Rhode Island Commercial Receivership Act, and the full house is scheduled to vote on the bill June 1st.  This act would create a temporary non-liquidating receivership program for businesses that have had a substantial decline in revenue after an emergency declaration by the government or for businesses that have suspended or ceased a substantial part of their operations because of action by a governmental unit exercising its police or regulatory powers to address an emergency.  The bill can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7895.pdf
 
 
 
 
This Week at the State House
 
 
Tuesday, May 31
 
The Senate Committee on Housing and Municipal Government is meeting at the Rise in room 211.  The one bill scheduled for a vote is S.2345, An Act Relating to Motor and Other Vehicles – Parking Facilities and Privileges.  Unless a SubA is posted prior to the vote, this 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
 
 
The House Finance Committee is meting at the Rise in room 35.  The committee will be voting on H.7863, An Act Relating to Labor and Labor Relations – Employment Security.  H.7863 extends until June 30, 2023, an increase in the total amount of earnings a partial-unemployment insurance claimant can receive before being entirely disqualified for unemployment insurance benefits and increases the amount of earnings disregarded when calculating a weekly benefit rate.  Without passage of this bill, these benefits (which were changed during the pandemic) end on June 30, 2022.
 
 
Wednesday, June 1
 
The House Labor Committee will vote on S.2418, An Act Relating to Labor and Labor Relations – Employment of Women and Children.  This bill is identical to H.6652 which is scheduled for a vote on the House floor the same day.  The bill requires children who are 14 years of age and wish to work, to complete a three-hour training program with the Department of Labor and Training.  The program, consisting of workplace health and safety content as well as workers’ compensation rights and workers’ rights, must be completed before a limited work permit can be issued to the child. 
 
 
The following new bills were filled last week:
 
House Bill No. 8282  Kislak, Potter, Slater, Diaz, Cassar, Bennett, Caldwell, Craven, Morales, Williams, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Requires health insurers, nonprofit hospital service corporations, nonprofit medical service corporations, health maintenance organizations and Rhode Island Medicaid, to issue policies that provide coverage for emergency medical services transport.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8282.pdf
 
Senate Bill No. 2984  Goodwin, Bell, AN ACT RELATING TO TOWNS AND CITIES -- HOUSING MAINTENANCE AND OCCUPANCY CODE (Allows a municipality to impose a debt in favor of the corporate unit against the owner when the municipality relocates the occupant and authorizes the corporate unit to choose the vendors to assist qualifying homeowners with repair costs.)
http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2984.pdf
 

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Under the Dome: Legislative Session Enters Final Phase

5/23/2022

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Legislative Session Enters Final Phase

Over the next few weeks, the legislature is expected to finish up the 2022 legislative session.  A budget could be posted for consideration in the House Finance Committee within the next two to two and half weeks.  At the same time, both the House and Senate will be voting out bills.  Please keep a look out for emails from the Chamber asking for your help in contacting legislators.

Last Week at the State House

Bills legalizing the adult use of cannabis passed the House Finance Committee and the Senate Judiciary Committee last week.  The 125-page bills are scheduled for votes on the House and Senate floors May 24th and could be on the Governor’s desk as early as May 25th.  By the end of the week, these bills will likely be law.  The bills allow anyone over the age of 21 to use the drug.  A Cannabis Control Commission, comprised of three commissioners, will be responsible for the regulation, licensing and control of adult use and medical use as well.  The Governor appoints the members with the advice and consent of the senate.  This was a compromise between control by the Department of Business Regulation and control by a legislative appointed body.  The compromise addressed concerns raised by the advocates for separation of powers.

For employers, the bills state clearly that workers’ compensation coverage does not include medical marijuana and that an employer is not required to accommodate the use of medical marijuana in the workplace or the possession of legal cannabis at the workplace.  Remote work is treated the same as a centralized worksite.  Employers may implement drug use policies which prohibit the use or possession of cannabis in the workplace or prohibit performing work under the influence of cannabis.  An employer cannot fire or take disciplinary action against an employee solely for an employee's private, lawful use of cannabis outside the workplace as long as the employee is not working under the influence of cannabis.  The bills carve out an exception for businesses that must maintain a zero tolerance in order to retain a federal contract or to maintain a federal license.   The bills also create a carve-out for employees “in a job, occupation or profession that is hazardous, dangerous or essential to public welfare and safety. If the employee's job, occupation or profession involves work that is hazardous, dangerous or essential to public welfare and safety then the employer may adopt and implement policies which prohibit the use or consumption of cannabis within the twenty-four (24) hour period prior to a scheduled work shift or assignment. For purposes of this section, hazardous, dangerous or essential to public welfare and safety shall include, but not be limited to: operation of an aircraft, watercraft, heavy equipment, heavy machinery, commercial vehicles, school buses or public transportation; use of explosives; public safety first responder jobs; and emergency and surgical medical personnel.”  Finally, employers may refuse to hire, or can terminate, an employee for working while under the influence of cannabis.


The compromise bill includes language to utilize testing as science progresses over time.  Today a widely accepted test that measures the amount of TCH in a person’s body is not available.  This makes driving under the influence more challenging to prove.  However, the bills include a saliva test in the list of tests that can be given to a person suspected of driving under the influence.
Municipalities that do not currently host compassion centers can choose to opt out of offering licenses for cannabis.  To do so, the following question must be placed on the ballot this November:  "Shall new cannabis related licenses for businesses involved in the cultivation, manufacture, laboratory testing and for the retail sale of adult recreational use cannabis be issued in the city (or town)?"  Should the electors vote to ban licensing, they can choose at a future time to again place the question on the ballot and allow for licensing.  Choosing to ban licenses in the municipality also means that the community forgoes the local tax on cannabis.  The state tax is set at 10%, the local tax is 3%.
The bills can be viewed in their entirety at:

http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7593A.pdf
http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2430A.pdf

This Week at the State House

Tuesday, May 24th

Call to Action for Wage Payment and Misclassification - S.2775, An Act Relating to Labor and Labor Relations – Payment of Wages is scheduled for a vote in the Senate Judiciary Committee at the Rise.  At the time of the writing of this edition of Under the Dome, no amendment was posted for consideration.  This bill was introduced at the request of the Attorney General, and it designates failure to pay wages on time, failure to pay wages at time of termination or misclassification of employees as independent contractors, as felonies subject to a prison sentence.  NOTE:  If this bill is important to your business, contact your Senator today! S.2775 will likely go to the Senate floor for a vote Thursday, May 26th or next week.  http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2775.pdf



The House Labor Committee will vote Tuesday to require children who are 14 years of age and wish to work, to complete a three-hour training program with the Department of Labor and Training.  The program, consisting of workplace health and safety content as well as workers’ compensation rights and workers’ rights, must be completed before a limited work permit can be issued to the child.  The bill number is H.6652.  http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H6652.pdf

Thursday, May 26th

The House Judiciary Committee is scheduled to vote on H.7895, An Act Relating to Courts and Civil Procedures – Rhode Island Commercial Receivership Act.  This act would create a temporary non-liquidating receivership program for businesses that have had a substantial decline in revenue after an emergency declaration by the government or for businesses that have suspended or ceased a substantial part of their operations because of action by a governmental unit exercising its police or regulatory powers to address an emergency.  The bill can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7895.pdf​

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Under the Dome: Update from the State House

5/17/2022

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​Last Week at the State House
 
H.7905 Sub A, An Act Relating to Labor and Labor Relations – Fair Employment Practices passed the House Labor Committee and is headed to the House floor for a vote this week.  This bill voids the use of non-disclosure or non-disparage agreements in civil rights matters.
 
H.7928, which requires larger business to file taxes electronically was held for further study, as was S.2264 which creates a new tax bracket (8.99%) for individuals making over $500,000.
 
S.2486 SubA, An Act Relating to Labor and Labor Relations – Dignity at Work Act passed the Senate Labor Committee on a 6-1 vote.  (Senator de la Cruz voted “no”).  The amendment transferred the authority to handle workplace bullying cases to the Human Rights Commission, added a severability clause and a liberal construction clause – meaning it should be interpreted to allow individuals greater ability to file complaints.  The full Senate is scheduled to vote on the bill Tuesday.
 
S.2775, An Act Relating to Labor and Labor Relations – Payment of Wages was held for further study, but it is getting a lot of attention and debate.  The House companion bill is H.7677.  These bills were introduced at the request of the Attorney General, and they designate failure to pay wages on time, failure to pay wages at time of termination or misclassification of employees as independent contractors, as felonies.  NOTE:  If these bills are important to your business, now is the time to reach out to both the House and Senate!  http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2775.pdf
http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7677.pdf
 
 
Unemployment Trust Fund Still Needs Your Help
 
Prior to the pandemic, the UI Trust Fund had over $500 million in it and businesses were being taxed at a “schedule F rate”.  The Fund was healthy enough that discussions were underway to drop the tax rate to “schedule E” (the lower the alphabetical designation, the lower the corresponding tax rate). As of a couple months ago, the fund dropped to about $195 million and the tax rate paid by employers is now at “schedule H” which is two schedules higher than the pre-pandemic rate.   The $300 million drop in funds came from the business community alone.  Without help from the State or the federal government, the business community will bear the burden of paying back the $300 million. 
 
We know that at least $70 million in fraudulent claims were paid out in Rhode Island.  Of the $70 million, about $37 million was paid by the Trust Fund – meaning paid by Rhode Island employers.  At the very least, employers should not be responsible to pay fraudulent claims.
 
Employers did not want to shut their doors to customers.  They did not want to lay off or terminate employees. The State made the choice to close non-essential businesses and told people to stay home.  From a public health perspective, this may have been the correct choice; but it was still a choice made by the State.  If it were not for the pandemic, employers would be paying less in unemployment insurance premiums today.  ARPA funds are intended to be used to address losses associated with the pandemic.  The UI Trust Fund experienced great loss due almost entirely due to the pandemic.
 
Lastly, it is important to stress that once the ARPA funds are spent, those funds are gone.  Should the General Assembly choose not to replenish the UI Trust Fund, and Rhode Island experiences another downturn in the economy, there will be no funds to assist the UI trust fund.  In that case, the tax rate would have to be further increased or the state would have to borrow from the federal government.
 
Please contact your legislators now and express how important it is to replenish the Unemployment Insurance Trust Fund.  Call or send an email telling your own experience with unemployment insurance taxes; or use the RI Business Coalition Voter Voice link to register your support for H.7385 which calls for a full replenishment of the Fund.  https://www.votervoice.net/RIBC/campaigns/94532/respond
 
 
This Week at the State House
 
Tuesday, May 17th
 
On Tuesday, at the Rise (approximately 4:30 pm) in Room 35, the House Finance Committee is scheduled to hear testimony on H.7440, An Act Relating to Taxation – Personal Income Tax.  H.7440 proposes to add one new income tax bracket at a rate of 8.99% on taxable income over $403,500 (in 2011 dollars). Adjusted for inflation, the new tax bracket would apply to taxable income over approximately $500,000 (in 2022 dollars), This act would take effect on January 1, 2023 and would not apply retroactively. 
 
Wednesday, May 18th
 
The long talked about legislation to legalize the adult use of marijuana is scheduled for a vote in the Senate Judiciary Committee at 3:30 in room 313 at the state house, while the House bill is scheduled for a vote at the Rise (approximately 4:30 pm) in the House Finance Committee in room 35.  The amendments to the two bills have not been posted for public review yet, but are expected to be posted later today or tomorrow.  Both meetings will be streamed live through Capitol TV at http://rilegislature.gov/CapTV/Pages/default.aspx
 
 
Thursday, May 19th
 
The House Finance Committee has a somewhat new bill on the agenda for Thursday at the Rise in room 35.  Filed last month, H.8119, An Act Relating to Health and Safety – Comprehensive Health Insurance Program, creates a comprehensive, single-payer health care insurance program.  The 92-page bill, creates an agency that will oversee health insurance for Rhode Island residents as well as retirees who have the insurance but then choose to retire in another state.  The health care program would include Medicaid and Medicare patients.  It is envisioned to cover an extensive range of services including: Primary and preventive care; Approved dietary and nutritional therapies; Inpatient care; Outpatient care; Emergency and urgently needed care; Prescription drugs and medical devices; Laboratory and diagnostic services; Palliative care; Mental health services; Oral health, including dental services, periodontics, oral surgery, and endodontics; Substance abuse treatment services; Physical therapy and chiropractic services; Vision care and vision correction; Hearing services, including coverage of hearing aids; Podiatric care; Comprehensive family planning, reproductive, maternity, and newborn care; Short-term rehabilitative services and devices; Durable medical equipment; Gender affirming health care; and Diagnostic and routine medical testing.  The program’s director must create a procedure that may permit additional medically necessary goods and services beyond that provided by federal laws. Private insurance companies are not permitted to sell duplicative services to someone covered by the single-payer plan.  H.8119 then creates a trust fund to pay for the services rendered.  The trust fund will accept federal Medicaid and Medicare dollars, and will collect a 10% payroll tax to be paid 80% by the employer, 20% by the employee (the employer can choose to pay up to 100%).  The bill also includes a 10% tax on unearned income although the director has the authority to adjust the percentage of tax to allow for a “progressive exemption or credit for individuals with lower unearned income levels.”  A 6% tax is also assessed on hospitals’ net patient services revenue.  The bill can be viewed in its entirety at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8119.pdf
 
 
 
Revenue Estimating Conference Update
 
As you may have read, the Revenue Estimating Conference met last week and determined that revenues are $580 million higher than anticipated back in November.  The $580 million breaks down into an addition $386.7 million in FY2022 and $193 million in FY2023.
 
For FY2022 – the current fiscal year - $284 million of the increase in revenue came largely from the personal income tax.  Other significant increase in revenue collections included:  $45 million business corporations, $43 million sales and use tax, $18 million insurance companies, $7.8 million state department receipts, and $2.3 million realty transfer taxes.  The state also received $700,000 more in alcohol tax revenue than anticipated.
 
In FY2023, the conferees believe the state will get $123 million more from the personal income tax, $74 million from increased sales tax revenue, $17.6 million from the insurance company tax and $11.6 million more from the business corporation tax.  There are some revenue sources which are anticipated be less such as the cigarette tax collections, estate tax revenues and a few general business taxes like public utility gross tax revenues.  The conferees also estimate caseload expenses to be about $159 million more than anticipated since last November with a portion of the $159 million coming from federal dollars.
 
What became increasing clear as the revenue discussion evolved over the seven hours, is that both revenues and expenses are difficult to estimate when a war is taking place, inflation is high, supply chains are tenuous and individuals are still deciding where and how to return to the workplace.
 
Remote Work Tax Implications
 
During the Revenue Estimating Conference, the Division of Taxation provided testimony to the conferees surrounding the personal income tax.  Director of Taxation Neena Savage clarified the status of an income tax reciprocal agreement made between a few states during the Covid 19 pandemic.  During the pandemic, if an employee normally worked from an office in Massachusetts, but was permitted to work from a Rhode Island home, that employer was able to pay income taxes to the Commonwealth of Massachusetts as it would have prior to the pandemic.  The agreement has expired.  If the employee continues to work from a Rhode Island home, then Rhode Island tax withholding applies.  This same change applies to an employee of a Rhode Island employer who is working remotely from his/her home in Massachusetts.  Please contact your accountant if this situation applies to your company.
 
 
 
There are no new bills to report this week. 
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2022 Chamber 101: Maximize Your Chamber Membership

5/16/2022

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Under the Dome: Update from the Statehouse

5/9/2022

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​This Week at the State House
 
Tuesday, May 10th
 
The Senate Finance Committee is meeting at the Rise (approximately 4:30 pm) in the Senate Lounge to hear testimony on S.2264, An Act Relating to Taxation – Personal Income Tax.  This bill creates a new tax bracket for individuals – and pass through entities – making over $500,000 of 8.99%.  The current rate is 5.99%.  If you wish to submit written testimony, it must be emailed to jplume@rilegislature.gov before 1:00 pm on Tuesday.
 
Wednesday, May 11th
 
The House Labor Committee will be voting on an amended version of H.7905, An Act Relating to Labor and Labor Relations – Fair Employment Practices.  This bill voids the use of non-disclosure or non-disparage agreements in civil rights matters.  An employer cannot “require an employee as a condition of employment, to execute a nondisclosure agreement or an agreement with a clause, that requires alleged violations of civil rights remain confidential, or a non-disparagement agreement concerning alleged violations of civil rights. Any contract provision in violation of this subsection shall be void as a violation of public policy.”  This is the language from the amended version – H.7905 SubA.  The original bill reads “require an employee as a condition of employment, to execute a nondisclosure agreement or an agreement with a clause, that requires alleged violations of civil rights remain confidential, or a non-disparagement agreement concerning alleged violations of civil rights or alleged unlawful conduct…”
 
Electronic filing of Taxes is on the docket for the House Finance Committee at the Rise in room 35.  H.7928 requires businesses with $5000 or more in annual tax liability, or with annual gross income of $100,000 or more, to file returns and remit taxes electronically.  If passed, the new requirement would begin January 1, 2023.  Failure to comply would result in a $50 fine unless reasonable cause for failure can be shown.  Testimony on this bill can be submitted by Wednesday at 1:00 p.m. at HouseFinance@rilegislature.gov
Be sure to include your name, bill number, and position in the email heading.
 
The Workforce Bullying bill (S.2486, An Act Relating to Labor and Labor Relations – Dignity at Work Act) is scheduled for a vote in the Senate Labor Committee at 4:00 p.m.  At the hearing in March, it was mentioned that an amended version may be offered prior to a Senate vote.  As of Sunday, no amendment has been posted.  The Senate has passed this bill multiple times.  The definition of workplace bullying includes: undermine, humiliate, denigrate, or sabotage a person in the workplace; as well as threatening, intimidating, dominating, or otherwise infringing upon a person's right to dignity.  Workplace bullying may take the form of interpersonal interactions, organizational practices, or management actions. Workplace bullying may take the form of harassment, incivility, abusive supervision, physical violence, aggressions and “other types of objectionable behaviors.” The behaviors may come from any level of the organization, including supervision, co-workers, subordinates, or customers.  Examples of bullying cited in the bill include:  Interfering with a person's personal property or work equipment; use of humiliation, personal criticism, ridicule, and demeaning comments; Overbearing or intimidating levels of supervision;  Withholding information, supervision, training or resources to prevent someone from doing their job; Changing work arrangements, such as rosters, offices, assignments, leave, and schedules to deliberately inconvenience someone; Isolating, or marginalizing a person from normal work activities; Inconsistently following or enforcing rules, to the detriment of an employee; Unjustifiably excluding colleagues from meetings or communications; and Intruding on a person's privacy by pestering…  The bill is very broad and provides the “bullied” employee the ability to sue both the individual(s) involved as well as the employer.  To view the actual text of the legislation, go to: http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2486.pdf
 
 
Thursday, May 12th
 
The Senate Judiciary Committee will take testimony on S.2775, An Act Relating to Labor and Labor Relations – Payments of Wages.  S.2775, submitted at the request of the Attorney General, creates a felony offense for knowing and willfully failing to pay an employee on the designated pay day, or for failing to pay an employee the amount of wages owed at the next pay day following termination.  If the value of the wages owed is between $1500 and $5000 the penalty is up to three years imprisonment or a fine of twice the value of the wages, or both.  If the value is between $5000 and $10,000, the penalty is up to six years in prison and a fine of twice the wages, or both.  If the value is over $10,000, the penalty is up to ten years in prison and a fine of twice the wages, or both. The bill also creates a felony penalty for employers that knowing and willfully misclassify an employee as an independent contractor.  The first knowing or willful violation brings a penalty of up to three years in prison or a fine of up to two times the value of the wages or $10,000, whichever is greater, or both.  The second knowing or willful offense carries a penalty of up to five years in prison or a fine of up to three times the value of the wages or $20,000, whichever is greater, or both.  NOTE:  If this bill is important to your business, now is the time to reach out to both the House and Senate!  Testimony can be emailed to SLegislation@rilegislature.gov   Please include the bill number, your name, position and company in the subject line.  
 
 
Revenue Estimating Conference Update
 
Last Friday, the Revenue Estimating Conference met to determine caseload numbers and certain program expenses which will be used in formulating the FY2023 budget and updating the current year’s fiscal budget (FY2022).  The Conference reconvenes today – Monday, May 9th, in what is a day long meeting to hash out revenue estimates that will be used in creating the budget.  Below are a few things we learned from the Caseload conference last week:

  • The RI Works program came in $2.2 million lower than anticipated in FY2022. RI Works is a financial and employment assistance program for parents and families with little to no income who have children high school age or younger.  It provides family supportive services, job readiness, preparation and placement, employment or vocational training and retention services.  Recipients can also receive child care, transportation and educational services.  In FY2022, the program, which served approximately 6094 people, is estimated to cost $18.6 million.  The estimate for FY2023 is 7850 people at a cost of $24.5 million.
  • Total cash assistance for FY2022, which includes the RI Works program, child care subsidies, SSI payments, and general public assistance, is estimated to end the year at $92.9 million.  Keep in mind that roughly 60% of that money comes from the federal government.  This estimate is $20.8 million less than anticipated when the FY2022 budget was crafted.  The FY2023 estimate is $112 million.
  • Medical assistance to Rhode Islanders comprises the largest category of expense for the state.  This grouping includes items such as: hospitals, long term care, managed care and acute care services (includes Medicaid), and pharmacy assistance.  In the current fiscal year, this category came in $47 million less than anticipated for a total of $2.875 billion.  The federal percentage has not been released yet, but it was originally expected to be about 64%.  For FY2023, the conferees estimate that medical assistance programs will cost $3.173 billion.  A large portion of the anticipated increase is attributed to managed care needs and Medicaid.
 
 
 
There are no new bills to report this week. 
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Meet Dolly Towne of Bookkeeping Towne

5/6/2022

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​Happy Friday!!! On the last day of Small Business Week, I have decided to promote my own business, Bookkeeping Towne, LLC. That is definitely one thing I don't do enough: self-promote! We are all our own advocates but we just don't do it enough. If you don't know what I do & how I help, let me re-introduce myself.......
Want to learn more about my services? Click here: https://connectwithdolly.as.me/bookkeepingqa
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