What is in the Governor’s Budget? In the coming editions of Advocacy in Action, we will highlight and summarize key articles of interest to the business community.
 
Article 2 – Relating to State Funds
https://webserver.rilegislature.gov/BillText26/HouseText26/H7127.pdf
 
Article 2 provides for changes to certain state funding accounts.
 
Section 1 – Uninsured Protection Fund

• A technical correction, it exempts the Uninsured Protection Fund (UPF) at the Department of Labor and Training from the 15% assessment for indirect cost recovery to be consistent with the exemption of the Workers’ Compensation Administration Fund included in the FY2026 enacted budget. The UPF provides workers compensation benefits to employees injured while working for an employer that failed to carry valid workers’ compensation insurance.

 
Section 2 – RIPTA / Highway Maintenance Account

• As part of a plan to cover the Rhode Island Public Transit Authority’s $13.8 million operating deficit, it increases RIPTA’s annual minimum share of the Highway Maintenance Account from $5 million to $14.3 million for FY27 and annually thereafter

 
 
Article 4 – Relating to Debt Management
https://webserver.rilegislature.gov/BillText26/HouseText26/Article-004.pdf
 
Article 4 authorizes new non-general obligation debt for three higher education projects.
 
Section 2 – Rhode Island College – Residential Life Renovations – Auxiliary Enterprise

• Approves financing of $20.6 million to enhances on-campus experience by renovating five residence halls, supported by revenue derived from residential life auxiliary student fees.

 
Section 3 – University of Rhode Island – Repaving and Hardscape Improvements

• Approves financing of $20 million to reconstruct and repave parking, roads and walkways at the Kingston, Narraganset Bay, and Alton Jones campuses, supported by repayments from unrestricted revenues and enterprise parking funds.

 
Section 4 – University of Rhode Island – Automotive and Administrative Services

• Approves financing of $14.4 million to construct a new automotive repair building and an addition to the central warehouse for mail/printing, supported by the University’s unrestricted revenue.

 
 
Article 7 – Relative to Education
https://webserver.rilegislature.gov/BillText26/HouseText26/Article-007.pdf
 
Article 7 revises policies and funding relative to school construction, the education funding formula, and the Hope Scholarship at Rhode Island College.
 
Sections 1 & 3 – School Housing Aid

• Increases the project cost threshold that triggers a project manager and commission agent from $1.5 million to $10 million, subject to inflation, and limits its cost to 3% of total project costs, which is estimated to save $1.5 million annually (~$800,000 state share).

 
Section 2 – Education Aid Student Success Factor

• Increases the weight applied for children whose family is at or below 185% of federal poverty guidelines from 40% to 43%, which is funded with an additional $14.4 million to address for these changes.

 
Sections 4 & 5 – Hope Scholarship

• Eliminates the pilot program and makes permanent the Hope Scholarship at Rhode Island College, a merit based last dollar tuition reduction scholarship program that provides for tuition and fees in Junior and Senior years for qualifying Rhode Island students that are in good academic standing, with a 2.5 GPA or higher, and are on track to graduate or to earn an approved certificate in a total of four years.

 
Section 6 – School Building Authority Capital Fund

• Eliminates the depositing of any current year difference between appropriations and entitlements under the traditional housing aid program into the School Building Authority Capital Fund.

 
 
 
This Week at the State House
 
Tuesday, February 3rd
 
Prohibiting Credit Card Surcharges
 
The House Corporations Committee has on its agenda for Tuesday at the Rise (approximately 4:30pm) in the House Lounge, behind the House Chamber on the Second Floor, H 7409 (https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7409.pdf) which would make it a deceptive trade practice for any retail establishment to impose a surcharge fee on a customer for the use of a credit card. Testimony should be emailed to [email protected].  
 
 
Thursday, February 5th
 
At the Rise on Thursday in Room 135, the House Labor Committee will hear various bills impacting employers. Testimony on the bills below should be emailed to [email protected]. 
 
 
Workplace Bullying
H 7121 (https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7121.pdf) would
prohibit any type of psychological abuse in the workplace inflicted by an employer, upon an employee or by a co-employee upon an employee, that results in the violation of an employee's right to a physically and psychologically safe work environment. It would also provide an employee, subject to bullying, psychological abuse, psychological injury and/or physical injury, with protections in the workplace and civil remedies against perpetrators of any prohibited activity. This act would further assess civil penalties upon employers violating the act, based upon the gross amount of revenues earned by employers, in addition to civil liability for damages sustained by the employee, as well as civil and criminal liability for any such conduct of a co-employee.
 
 
Inspection of Personnel Files
H 7442 (https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7442.pdf) would greatly expand the obligations of employers to create, maintain and retain their employees’ personnel records, including retention for at least three years after termination, and doubles penalties for each violation to $3,000.
 
 
Restricting Self Service Checkouts
H 7290 (https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7290.pdf) would limit grocery stores by capping the number of self-service checkout stations they can operate and mandating a minimum ratio of manual checkout stations to self-service checkout stations. Further, it limits the workload and additional duties an employer can assign to an employee that monitors self-service checkout stations.
 
 
32 Hour Work Week
H 7362 (https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7362.pdf) would reduce the workweek to 32 hours without reduction in pay from a 40 hour week, and require that work in excess of 32 hours in any workweek to qualify for overtime pay.  H 7367 (https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7367.pdf) would create a nine member study commission to evaluate reducing the 40 hour workweek to 32 hours.
 
 
Warehouse Worker Standards
H 7364 (https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7364.pdf) would require employers to provide warehouse distribution center workers upon hire a written description of employee quotas applicable to their work, including any quantified number of takss to be performed on materials to be produced or handled, within defined time periods, and any adverse action that could result from failure to meet such quotas.
 
The following new bills have been filed
 
 
Senate Bill No. 2342 BY  Lawson, LaMountain, Bissaillon ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RESTRICTIONS ON SELF-SERVICE CHECKOUT STATIONS ACT (Places limits on the number of self-service checkout stations a grocery store can have and on the workload of employees assigned to monitor those checkout stations.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2342.pdf
 
Senate Bill No. 2343 BY  Paolino, Dimitri, Rogers, Patalano, Thompson, Pearson, DiPalma, Ujifusa, Burke, Gu ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES (Expands the duties of the small business ombudsman, by also having the ombudsman serve as the Rhode Island commerce corporation's small business advocate.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2343.pdf
 
Senate Bill No. 2344 BY  Felag, Burke, Tikoian, Murray, Lauria, Vargas, DiMario ENTITLED, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- INTERCHANGE FEES (Prohibits the charging of interchange fees on taxes and gratuities.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2344.pdf
 
Senate Bill No. 2346 BY  DiPalma, Tikoian, Ciccone, Britto, Gallo, Urso ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE CORPORATION (Establishes property, tangible, sales and use tax exemptions as incentives for the location of qualified data centers in Rhode Island.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2346.pdf


Senate Resolution No. 2354 BY  DiMario, Britto, Zurier, Euer, Vargas, Lauria, Ujifusa, Mack, Bell, Valverde ENTITLED, SENATE RESOLUTION REQUESTING THE RHODE ISLAND PUBLIC UTILITIES COMMISSION TO TERMINATE GAS LINE EXTENSION ALLOWANCES AS PART OF DOCKET 25-45-GE https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2354.pdf
 
Senate Bill No. 2361 BY  Mack, Acosta, DiMario, Murray, Lauria ENTITLED, 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/BillText26/SenateText26/S2361.pdf
 
Senate Bill No. 2370 BY  Thompson, Famiglietti, Patalano, Burke, Dimitri, Quezada, Pearson, Tikoian ENTITLED, AN ACT RELATING TO TAXATION -- RHODE ISLAND TAX AMNESTY ACT OF 2017 (Authorizes the tax administrator to waive interest and penalties on delinquent taxes paid in full during a one week amnesty period. Also reinstates a suspended driver’s license upon payment in full.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2370.pdf
 
Senate Bill No. 2372 BY  Felag, Urso, Burke, LaMountain, DiPalma, Ciccone, Tikoian ENTITLED, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Eliminates the sales tax on taxi services and pet care services.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2372.pdf
 
Senate Bill No. 2390 BY  Patalano, Ciccone, Tikoian, Famiglietti, Appollonio, Thompson, Raptakis, Burke, Dimitri, LaMountain ENTITLED, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- GIFT CARD FRAUD (Makes offenses against gift card holders subject to the penalties for larceny.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2390.pdf
 
Senate Bill No. 2396 BY  McKenney, Burke, LaMountain, Appollonio, Bissaillon ENTITLED, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE IN PARTICULAR ACTIONS -- ARBITRATION (Extends time for a party to apply for stay of arbitration to180 days; invalidates any provision that penalizes a party for seeking legal representation; requires arbitrator to provide notice of default to a party for failure to pay fees.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2396.pdf


Senate Bill No. 2406 BY  Lawson, DiPalma, Murray, LaMountain, Gallo ENTITLED, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- AGE-APPROPRIATE DESIGN CODE (Requires that any covered entity that develops/provides online services, products, or features that children are reasonably likely to access shall consider the best interest of children when designing/developing such online service, product, or feature.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2406.pdf


Senate Bill No. 2408 BY  Mack, Valverde, Vargas, Quezada ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Commencing January 1, 2027, this act would increase the minimum wage for employees receiving gratuities, from the current three dollars and eighty-nine cents ($3.89) to six dollars and seventy-five cents ($6.75) per hour.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2408.pdf


House Bill No. 7440 BY  Furtado, Kislak, Bennett, Casimiro, Kazarian, Donovan, Alzate, O'Brien, Stewart, Messier ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY -- BENEFITS (Allows unemployment benefits for workers who are on strike or are locked out of their workplaces by their employer due to a labor dispute.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7440.pdf


House Bill No. 7449 BY  Paplauskas, Nardone, Fascia, Place, Newberry, Chippendale, Roberts, Brien, Santucci, HopkinsnENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES-ECONOMIC IMPACT STATEMENTS (Requires agencies preparing economic impact statements for small businesses contain findings that the anticipated compliance costs of a proposed rule scale proportionally with the business size, and do not impose fixed costs that favor larger businesses.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7449.pdf


House Bill No. 7467 BY  McEntee, Spears, Phillips, Casey, Shallcross Smith, Fogarty, Craven, Kennedy, Azzinaro, Cotter ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT (Removes the requirement that 5% of the hotel tax generated from regional tourism districts be paid to the Greater Providence-Warwick Convention and Visitors Bureau, and adds that 5% of the hotel tax to the existing tax paid to the RI commerce corporation. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7467.pdf

​This Week at the State House
Tuesday, January 27th
Credit Card Fee Notification
This Week at the State House


Tuesday, January 27th


Credit Card Fee Notification


The House Corporations Committee has on its agenda for Tuesday at the Rise (approximately 4:30pm) in the Room 101, two bills of interest. H.7022 http://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7022.pdf requires any business that charges a fee to customers for the use of a credit card to post in a conspicuous place the amount of the surcharge. Failure to disclose the surcharge is a violation of the Unfair Trade Practice Act. The law, if passed, would take effect January 1, 2027.


Sales to Persons Over 65
H.7266 http://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7266.pdf pertains to businesses that sell good or services to individuals over the age of 65. If the business offers customers a discount for utilizing ACH or EFT payment methods, the same discount must be offered to individuals over 65 who pay by a paper check. This act would take effect upon passage.


Testimony for either H.7022 or H.7266 should be emailed to [email protected]




Thursday, January 29th


Interest on Judgments


The House Judiciary Committee has on its agenda for Thursday at the Rise in the House Lounge (behind the House chamber on the second floor) H.7033 http://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7033.pdf . H.7033 changes the amount of interest assessed on a civil judgments – pre judgment and post judgement - from 12% to a rate equal to the coupon issue yield equivalent, as determined by the United States secretary of the treasury, of the average accepted auction price for the last auction of fifty-two (52) week United States treasury bills settled immediately preceding the date of the filing of the action. This act would take effect upon passage. Testimony should be emailed to [email protected]






What is in the Governor’s Budget?


Article 6 – Capital Development Program
https://webserver.rilegislature.gov/BillText26/HouseText26/Article-006.pdf proposes $600 million in new bonding authority if approved by the voters. This amount is significantly higher than previous budget years which saw bonding requests totaling $300 million to $400 million. The $600 million request includes the following outlays:


· Higher Education Facilities Bond - $215 million
o The $215 million is broken down to include: $105 million for the construction of a new Integrated Health Building on the University of Rhode Island’s Kingston campus, $50 million for a Rhode Island College student success and career readiness center and Adams Library, and $60 million for the Community College of RI innovation center.


· Housing and Homeownership Bond - $120 million
o At least $25 million is dedicated to production of housing intended for homeownership. The remainder of the bond money is slated to be used for affordable and accessible housing through redevelopment of existing structures, new construction, property acquisition, and infrastructure improvements. In November, 2024 voters approved a $120 million housing bond. The state started accepting applications in October, 2025. It is unclear how much of the $120 million has been spent thus far.


· Economic Development Bond - $115 million
o This bond is broken into two separate funds. The bond calls for $70 million to be used for land acquisition, environmental remediation, utility infrastructure and site preparation for industrial sites. This also includes efforts to create pad-ready sites at the Quonset Business Park and projects within the I-195 district.


· Career and Technical Education - $50 million
o The $50 million is slated for the creation of new or improvements to existing career and technical education programs.


· Green Economy and Clean Energy Bonds - $50 million
o There are seven designated purposes for this bond, including: $3 million for Brownsfields remediation, $8 million for facility improvements at state parks, $1 million to serve as an 80% matching grants program for municipalities to acquire or rehabilitate recreations facilities, $1 million for marine infrastructure and recreational facilities, $20 million to be used for resiliency infrastructure, coastal habitat and floodplains, $7 million to address nonpoint source pollution abatement such as stormwater management and riparian buffers, and $10 million for energy efficiency infrastructure.


· Cultural Economy - $50 million
o The Cultural Economy bond is divided into two portions. $45 million would be used to create a state history center to house archived historical documents. The remaining $5 million would be used as matching grants for capital improvements to public historic sites, museums and cultural art centers.


Article 3 – Government Reform and Reorganization
https://webserver.rilegislature.gov/BillText26/HouseText26/Article-003.pdf proposes several changes to government departments, state operations and economic development programs.


· Section 1. Governor’s Line Item Veto – If passed, Rhode Island would join 44 other states in giving the Governor the power to veto specific sections of the budget, not just the “budget as a whole.” If vetoed, the specific section could be overridden by a 3/5 majority vote of the both the House and Senate. The last state to pass a line-item veto was the state of Maine in 1995. Massachusetts passed its version in 1918. Connecticut passed it in 1924. Vermont and New Hampshire do not allow their Governors that authority.


· Section 2. Management of Unused Paint – This section requires the state’s contractor – PaintCare – to update its plan for review and approval every five years starting December 31, 2026. Current law allows DEM to request an update every four years.


· Section 3. Green Buildings Act – The Governor proposes to move the jurisdiction of the program from the Department of Administration to the Office of the State Building Code Commissioner starting July 1, 2026. Any regulations promulgated thus far will remain in effect until the Commissioner promulgates new rules. The Department of Administration must analyze the costs and benefits of LEED certification to determine if it is still a valuable certification process.


· Sections 4, 5 and 17. Weatherization Program – Sections 4, 5 and 17 transfer the state’s weatherization efficiency (grants and system upgrade assistance) program from the Department of Human Services to the Office of Energy Resources. Section 17 also designates the Office of Energy Resources as the responsible entity for administering any energy bond referendums passed by the voters.


· Sections 6, 7 and 19-23. Big River Reservoir – These sections give the Department of Environmental Management (DEM) authority over lands acquired for the Big River Reservoir project. The 8,600-acre area was purchased in the 1960s as a proposed back up reservoir. Home owners were moved out in anticipation of flooding the area, until EPA stepped in (1990) killing the project and citing irreparable damage to existing wetlands.


· Section 8. Rebuild Rhode Island Tax Credit Act – Section 8 increases the aggregate maximum credit, inclusive of sales and use exemptions allowed, from $225 million to $250 million. The Rebuild RI program is slated to expire December 31, 2026. This proposed amendment extends the program for an additional year to December 31, 2027.
· Sections 9 through 15 and Section 18 – Economic Development Program Extensions – The following programs are extended for an additional year, ending December 31, 2027: RI Tax Increment Financing, Tax Stabilization Incentive, Wave Closing Fund Act, I-195 Redevelopment Project Fund Act, Stay Invested in RI Wavemaker Fellowship, Main Street RI Streetscape Improvement Fund, and the Innovation Initiative.


· Section 16. Rhode Island Energy Resources Act – Section 16 creates an energy benchmarking program for state buildings with a footprint of 25,000 gross square feet or more. Each month, a report would be filed noting the amount of energy used in the building as well as the type of energy utilized. The Office of Energy Resources is charged with compiling the data and setting standards for state buildings that would require a decrease in energy used over time. The intent of the act is to assist the state in meeting its mandates under the Act on Climate. Section 16 includes a voluntary program for municipalities. Last year the legislature considered legislation requiring all buildings, including privately owned buildings, over 25,000 square feet to participate in a similar program. That legislation has been filed again this year (see H.7183 and H.7184 below) and will be the subject of debate at the state house.


· Section 18. Rhode Island Qualified Jobs Incentive Act of 2015 – Section 18 extends the RI Qualified Jobs Incentive Act for one year to December 31, 2027. Companies that create new positions or relocate jobs to the state can receive annual, redeemable tax credits for up to 10 years, with credits of up to $7,500 per job per year.














The following new bills have been filed:
House Bill No. 7172 BY Casimiro, Giraldo, Donovan, Read, Spears, Shallcross Smith, Potter, Hopkins, ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- HEALTH CARE AND SOCIAL SERVICES TRANSACTION REVIEW AND SIGNIFICANT EQUITY INVESTOR DISCLOSURE ACT (Creates and establishes the Health Care and Social Services Transaction Review and Significant Equity Investor Disclosure Act designed to enhance disclosure for material changes involving significant equity investors.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7172.pdf
House Bill No. 7179 BY Phillips, Brien, Place, Azzinaro, Shanley
ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- VEHICLE BARRIERS -- THE CHARLOTTE A. VACCA ACT (Requires commercial property owners to install vehicle barriers at their retail establishment locations as part of any new construction.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7179.pdf
House Bill No. 7180 BY Shallcross Smith, Marszalkowski, DeSimone, Kislak, Giraldo, Brien, Cruz, Potter, Fogarty, Read ENTITLED, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- DIGITAL ELECTRONICS RIGHT TO REPAIR ACT (Establishes a digital electronics right to repair, which allows for digital electronic equipment and parts that are sold in this state on or after January 1, 2027, to be repaired at an independent repair provider.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7180.pdf
House Bill No. 7183 BY Kislak, Fogarty, Carson, McGaw, Boylan, Speakman, Cortvriend, Handy, Bennett, Donovan ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- BUILDING BENCHMARKING AND REPORTING ACT OF 2026 (Establishes a program for the energy and water benchmarking of large buildings in Rhode Island and a standard for their energy performance.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7183.pdf
House Bill No. 7184 BY Kislak, Handy, Fogarty, Cortvriend, McGaw, Potter
ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- BUILDING PERFORMANCE STANDARDS ACT OF 2026 (Directs the office of energy resources to develop building performance standards for large buildings in Rhode Island that would cause greenhouse gas emissions to decline in line with the act on climate requirements.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7184.pdf
House Bill No. 7290 BY Cotter, Spears, Carson, Donovan, Corvese, Morales, Read, Kislak, Ajello, Potter ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RESTRICTIONS ON SELF-SERVICE CHECKOUT STATIONS ACT (Places limits on the number of self-service checkout stations a grocery store can have and on the workload of employees assigned to monitor those checkout stations.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7290.pdf House Bill No. 7291 BY Casey, Edwards, Ackerman ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- LABOR RELATIONS ACT (Allows employees, not represented by a union, to create a group to collectively bargain with employers.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7291.pdf
House Bill No. 7313 BY Alzate, Fogarty, Potter, Giraldo, Donovan, Spears, Lombardi, Diaz, Cotter, Kazarian ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Creates an additional tax rate of 3% on taxable income over $640,000 in 2026 dollars. Applies to tax years 2027 and thereafter and not retroactively.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7313.pdf Senate Bill No. 2195 BY Urso, Gu, DiPalma, Paolino, Zurier, Murray, Appollonio
ENTITLED, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- ARTIFICIAL INTELLIGENCE COMPANION MODELS (Creates additional safety features for AI companion technology that include addressing suicidal ideation, potential physical harm or financial harm to others expressed by a user. It also requires notification the AI companion does not have human emotions.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2195.pdf
Senate Bill No. 2218 BY Kallman, Valverde, Lauria, DiMario, Euer, Vargas, Gu, Mack, Britto ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- BUILDING PERFORMANCE STANDARDS ACT OF 2026 (Directs the office of energy resources to develop building performance standards for large buildings in Rhode Island that would cause greenhouse gas emissions to decline in line with the act on climate requirements.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2218.pdf Senate Bill No. 2222 BY Sosnowski, Murray, Euer, McKenney, Kallman, Valverde
ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2026 (Establishes a fee on companies that sell fossil fuels in Rhode Island and establishes a fund to disburse the collected funds.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2222.pdf
Senate Bill No. 2238 BY Murray, Lawson, Ciccone, DiMario, Lauria, Bissaillon, Acosta, Gu, McKenney, Burke ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Creates an additional tax rate of 3% on taxable income over $640,000 in 2026 dollars. Applies to tax years 2027 and thereafter and not retroactively.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2238.pdf
Senate Bill No. 2248 BY Sosnowski, Murray, Zurier, Valverde, Kallman, DiMario, Gu, Ciccone, Pearson, Britto ENTITLED, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND CARRIERS (Creates an income-sensitive tiered subsidy program to ensure that home energy utility costs are affordable for eligible low-income households.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2248.pdf
Senate Bill No. 2251 BY Tikoian, Ciccone, Felag, Burke, Dimitri, Famiglietti, Morgan, Paolino, Thompson, DiPalma ENTITLED, AN ACT RELATING TO
TAXATION -- ESTATE AND TRANSFER TAXES -- LIABILITY AND COMPUTATION (Eliminates the estate tax in Rhode Island.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2251.pdf
Senate Bill No. 2320 BY DiPalma, Ciccone, Britto, LaMountain, Felag, Gallo, Patalano, Dimitri, Famiglietti ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- DIVISION OF OCCUPATIONAL HEALTH (Requires employers to protect employees from extreme temperatures through rest breaks, PPE, training, and equipment, and mandates quarterly supervisor training, to recognize and mitigate heat- and cold-related risks.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2320.pdf
Senate Bill No. 2323 BY Bissaillon, Lawson, DiPalma, Gallo, Gu, Urso, Zurier, Acosta, Bell, Mack ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER TRANSPORTATION BENEFITS ACT (Establishes the commuter transportation benefit chapter. Employers with five hundred (500) or more employees required to establish a pre-tax commuter transportation fringe benefit program.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2323.pdf
Senate Bill No. 2324 BY Quezada, Acosta, Kallman, Bissaillon, Valverde, Bell, DiMario, Lauria, Zurier, Vargas ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- CONSUMER CREDIT HISTORY EMPLOYMENT PROTECTION ACT -- DECEPTIVE TRADE PRACTICES (Prohibits employers from seeking/using credit reports in making hiring decisions concerning prospective employees, asking questions about the applicant's financial past during interviews or including credit history questions in their job applications.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2324.pdf
Senate Bill No. 2325 BY Thompson, Raptakis, Burke, Ciccone, Britto, Quezada, Murray, Tikoian, McKenney, Gu ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Effective January 1, 2028, Increases the hourly minimum wage in accordance with the Consumer Price Index for the Northeast Region for the previous four (4) fiscal years.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2325.pdf

Final 2025 Legislative Wrap-up, Or Is It?
In this, hopefully the last 2025 edition of Advocacy in Action, we provide you with a list of bills that have become law in 2025, along with the effective dates of the new laws. The legislature finished its work at 1:30 am June 21, 2025. Since then, the General Assembly has transmitted bills to the Governor for his consideration. That process was completed last Friday. As you know, the federal government passed legislation affecting state programs, with some changes coming in future years. A team in Rhode Island is reviewing the large bill to determine the changes to state revenue. If the Rhode Island budget must be amended as a result of the passage of the federal law, the legislature will return for a fall session. In the event a session is called to order, all legislation that has not passed. to date, is technically alive and can be addressed. Past legislatures have limited voting to the issue or issues causing the General Assembly to reconvene, but it is not a rule.
Your Chamber was very engaged: reviewing over 2000 bills, actively tracking just over 300 pieces of legislation, and providing testimony on many of them verbally or in writing. Next year is an election year. If you want to be at the table instead of “on the menu,” we encourage you to think about running for office. Contact the Chamber and we can help you understand what is required to run. Thank you for reading this publication each week and for responding to “Calls to Action” when asked. We will see you at the next Chamber event!
New Laws Passed During the 2025 Legislative Session
Labor Issues:
Minimum Wage – H.5029 SubA/S.125 SubA – Public Law Chapters 222 and 223 increase the minimum wage to $16 per hour starting January 1, 2026 and to $17 per hour January 1, 2027. The original bills called for a $1 increase each year for five years, reaching $20 in 2030. A push came in the final weeks of session to reduce the number of years to three years. Your Chamber pushed further to reduce the impact to two years. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5029A.pdf
TDI/TCI Wage base and Siblings – H.6066 SubA/S.974aa – Public Law Chapters 237 and 235 - increase an employee’s taxable wage base for TDI/TCI from $89,200 to $100,000 starting January 1, 2026. The new law also expands TCI wage reimbursement from 60% to 70% of weekly wages beginning January 2026 and 75% after January 2027. Lastly, the law adds the care of “siblings” as an eligible reason to take TCI benefits. “Sibling” is defined as children with a common parent, including biological siblings, half siblings, step-siblings, foster siblings, and adopted siblings. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25222.htm
TDI/TCI Coverage for Organ Donation – H.6065aa/S.829 SubA – allow living organ donors to use TCI benefits to cover time needed for any procedures, medical tests, and surgeries related to the donation - up to thirty business days. Employees may take up to five days for donating bone marrow to a recipient. The Chamber worked with the proponents of these bills to address these rare situations with the least amount of impact to the operation of a business. The law becomes effective January 1, 2026. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0829A.pdf
Employer “Mini-Handbook” Requirement - H.5679 SubAaa/S.70 SubAaa – Public Law Chapters 337 and 338 - changes an employer’s responsibilities, starting January 1, 2026, as it relates to providing a type of “mini employee handbook” (in English) to employees when they are hired. The information must include: rate or rates of pay and the basis for pay (hour, shift, day, week, salary, piece, commission, or other method), allowances, if any, for meals and lodging; employer's policy on sick, vacation, personal leave, holidays and hours; employee's employment status and whether the employee is exempt from minimum wage and/or overtime; a list of deductions that may be made from the employee's pay; number of days in the pay period, the regularly scheduled payday, and the payday on which the employee will receive the first payment of wages earned; legal name of the employer and the operating name of the employer, if different from its legal name; physical address of the employer's main office or principal place of business, and its mailing address if different; and telephone number of the employer. Failure to comply results in a penalty of $400 for the first and second offense. Subsequent offenses are subject to the penalties in RIGL 28-14-17(a) which reads, “guilty of a misdemeanor, and upon conviction of the misdemeanor, the employer shall be punished by a fine of not less than four hundred dollars ($400) for each separate offense, or by imprisonment of up to one year, or by both fine and imprisonment.” The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5679Aaa.pdf
Menopause Accommodation – H.6161/S.361 - Public Law Chapters 225 and 226 - expand the current law to include menopause and menopause related conditions in the law on fair employment practices pertaining to pregnancy and pregnancy related conditions. The language, which became effective upon passage, refers to accommodations for “the need to manage the effects of vasomotor symptoms” which is commonly known as “hot flashes” or “night sweats.” The final version of the bill can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25225.htm
Unemployment Compensation Partial Benefits – H.5448aa/S.622aa – Public Law Chapters 236 and 296 – extend the current partial unemployment benefit program for one more year to June 30, 2026. During the COVID-19 pandemic, the General Assembly and Governor increased the total amount of earnings a partial-unemployment insurance claimant could receive before being
entirely disqualified for unemployment insurance benefits and increased the amount of earnings disregarded when calculating a weekly benefit rate. At the time, it was deemed necessary because jobs were hard to find as many places were forcibly closed by the state. The law was about to sunset June 30, 2025. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0622aa.pdf
Labor Relations Definition of Employee – H.5187 SubAaa/S.124 SubBaa – change the definition of “employee” under Rhode Island law, effective immediately. Members of the unions pushed these bills as a means to head off any federal changes in the National Labor Relations Board. The new definition reads “"Employee" specifically includes any teaching assistants, research assistants, fellows, residential assistants and proctors who perform services for an employer in return for payment or other compensation, notwithstanding whether the employee is a student, or the supervised teaching, research, or other services are a component of their academic development.” These individuals are currently covered in Rhode Island. The law also gives the Board the ability to adopt rules for electronic filing of cards of interest, decertification signature cards, signature affirmation documents and designation of bargaining agent and waiver of right-to-vote forms. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0124Baa.pdf
Captive Audience Ban – H.5506 SubA/S.126 SubA – limit the First Amendment and Fourteenth Amendment rights of employers by barring them from holding mandatory meetings with employees to discuss any issue covered under the bill’s definition of “political matters.” “Political matters” is defined as, “topics that are unrelated to the employer's business or business activities, such as subjects relating to elections for political office, political parties, proposals to change legislation or regulations which are not directly related to the employer's business, and a decision whether to join or support any political party or political, civic, community, fraternal or labor organization.” It is this very situation that was anticipated, and addressed by Congress under the Taft-Hartley Act of 1947. That federal law specifically allows employers to hold such meetings provided they do not threaten employees in the meeting. The new state law does allow employers to: (1) communicate to its employees any information that the employer is required by law to communicate, but only to the extent of such legal requirement, (2) communicate to its employees any information that is necessary to perform their job duties, (3) communicate with employees of higher education entities if it is part of coursework, symposia or an academic program at such institution, (4) engage in casual conversations with employees if participation is not required. The law is in effect now. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5506A.pdf
Energy and Environment Issues:
Act on Climate – Senate Resolution 23 – Resolution 313 - creates a five-member special legislative commission to provide recommendations for any necessary legislation and/or oversight for the Act on Climate. This commission must report back to the Senate on or before May 1, 2026, and expires June 1, 2026. The resolution can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0023.pdf
Nuclear Energy Procurement – H.5575SubA/S.318 SubA – Public Law Chapters 101 and 102 - allow the electric distribution company to procure nuclear electricity through long-term contracts. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25101.htm
Extended Producer Responsibility (EPR) – H.6207 SubAaa/S.996 SubAaa – Public Law Chapters 356 and 355 – require the Department of Environmental Management (DEM), the Department of Administration (DOA), and the Rhode Island Resource Recovery Corporation (RIRRC), to commission a statewide needs assessment to determine the infrastructure, policy, and programmatic requirements necessary to support a statewide redemption and recycling plan that includes packaging materials, paper products, and standard and miniature size beverage containers (aluminum, glass, plastic, etc). This study was passed following an impasse between proponents and opponents of the bottle deposit and redemption bill and the EPR bills. The commission must complete its work by December 1, 2026. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0996Aaa.pdf
Taxation Issues:
State Budget - H.5076 SubAaa – Public Law Chapter 278 – became effective without the Governor’s signature June 29, 2025. The Chamber has reported extensively on this legislation. The 441-page document includes the following taxes:
· Whole homes that are rented for less than thirty days would be subject to the hotel tax. Currently, those properties are exempt.
· The hotel tax increased from 1% to 2%
· Real estate conveyance tax – the budget includes a 63% increase in the real estate conveyance tax which is paid at the time of sale of a property. Prior to 2021, all properties were taxed at $2.30 per $500 of sale price. In 2021, the General Assembly increased the tax on residential properties selling at a price over $800,000 – adding another $2.30 per $500 for the portion of the selling price over the threshold (sometimes referred to as Tier 2 properties). This year, an additional increase of 63% is included on both Tier 1 and Tier 2 properties. The tax increase is estimated to raise $13.5 million in this fiscal year and $18.7 million in FY27.
· Sales tax is applied to short-term parking up to one month. Estimated to generate $1.6 million
· Gas tax increases by 2 cents per gallon with a majority of the revenues going to RIPTA. The existing gas tax law has an automatic adjustment every two years. On July 1, 2025, the gas tax will rise to $.41 a gallon.
· A new state tax on non-owner-occupied homes was included in this budget. Some media outlets have dubbed this the “Taylor Swift” tax. The language defines “non-owner occupied as “the residential property does not serve as the owner’s primary residence and is not occupied by the owner of the property for a majority of days during a given taxable year.” If the property has an assessed at a value over $1 million, and the property is not rented for more than 183 days during the previous taxable year or was subject to the room reseller tax, or lodgings tax, it falls under the new tax. The tax amounts to $2.50 for each $500 of assessed value in excess of $1 million. The tax is levied in addition to all other taxes assessed. The tax can be paid in four quarterly payments, with the first installment due September 15th of a given taxable year.
· Fee increases include: a $1 increase in the technology surcharge fee for vehicle registrations, a new $200 fee each time a battery electric vehicle is registered, $100 for a plug-in hybrid registration, a $50 fee for a hybrid electric vehicle, increased penalties for various law infractions.
The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5076Aaa.pdf
Industry Specific Issues:
CDL Training Requirement – H.5231/S.523 – Public Law Chapters 64 and 65 – require that commercial driver instruction include industry-specific training on the recognition, prevention, and reporting of human trafficking. The law is in effect at this time. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25064.htm
Investments of Domestic Insurance Companies – H.6315/S.1047 – Public Law Chapters 88 and 87 - eliminate the Rhode Island restriction on insurance companies that limited the investment in Schedule BA assets to 10% of assets. Schedule BA assets are long-term invested assets that do not fit into other asset categories. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25088.htm
Non-profit Salary Disclosure - S.579 SubA – Public Law 41 – requires non-profits that receive grants or other funding, in excess of $50,000, from the general assembly directly or appropriated through the state budget, to disclose the total benefit package paid to the five highest compensated employees with reportable compensation of at least $100,000 during the previous fiscal year. The disclosure must include a description of the position, the total salary or compensation paid along with all benefits provided including health insurance, retirement or pension contributions, and any other allowances for items such as automobiles, lodging or communication devices. The names of the individual employees do not have to be disclosed. The disclosure must be made within ninety days of receipt of the grant or funding. The law is in effect at this time. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25041.htm
Ticket Fees and AirBnB Fees – H.5247 SubAaa/S.17 SubA –require entities advertising live-event tickets or short-term lodging to include all fees associated with the transaction before the consumer consents to purchase. Any violation is subject to the Rhode Island Deceptive Trade Practices Act. The law takes effect January 1, 2026. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5247Aaa.pdf
Bills of Interest That Did Not Pass:
S.959 An Act Relating to Labor and Labor Relations — Workplace Psychological Safety Act. This bill is often referred to as “the bullying bill.” S.959 holds employers responsible for failure to respond and eliminate “psychological abuse” in the workplace. The definition of "psychological abuse" 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. An employee may use both direct and circumstantial evidence to prove a violation occurred. In the event an allegation is deemed to fit the definitions outlined in the legislation, that employee is entitled to economic, compensatory, and punitive damages or $5,000, whichever is greater. The bill passed the Senate but remains in the House Labor Committee.
H.5493 SubA/S.91, Acts Relating to Health and Safety – Building Decarbonization Act of 2025. Both bills went through drafting changes during the last night of session. H.5493 SubA was amended to remove the requirement to build “electric-ready” buildings, but kept in place the requirement for owners of buildings greater than 25,000 sq. ft. to report their annual energy usage by type to the Office of Energy Resources (OER). The Governor had proposed benchmarking state government building first before moving to the private sector. The House passed the bill the night of June 20th, but never transmitted it to the Senate for consideration. The Senate companion remains in the Senate Environment and Agriculture Committee.
S.302 SubAaa, An Act Relating to Labor and Labor Relations – Rhode Island Noncompetition Agreement Act, passed the Senate but was not transmitted to the House. This bill originally banned almost all noncompete agreements, but it was amended to apply to employees making less than $125,000 a year (full exemptions to the ban existed for businesses governed by Gramm-Leach-Bliley Act, and agreements made in connection with the sale of a business).
H.5940, An Act Relating to Labor and Labor Relations – The Rhode Island Opportunity for Employee Ownership Act. H.5940 requires a majority of businesses in Rhode Island to give all full-time and part-time employees seven-days-notice of an intent to sell all or at least 51% of the business. This requirement applies to every business employing between three and five hundred employees that is privately held and not a publicly traded company. It also exempts pass though entities. Once the notice is given, the employees have thirty days to respond with an intent buy notice, not an offer to purchase. If the employees form a group and give the owner an intent to buy notice, they then have 180 days to determine what they believe the value of the business to be before making an actual offer. H.5940 remains in the House Labor Committee.
H.5943/S.857, Acts Relating to Businesses and Professions – Holiday Business, begin the process of addressing Rhode Island’s designation as the last state in the country to require premium pay be paid to employees who work Sundays or holidays as a part of their normal 40-hour work week. Massachusetts phased out its requirement leaving Rhode Island as the lone outlier. The legislation exempts small businesses – defined as a business with less than 15 employees – from the premium pay requirement. The bills also exempt larger employers if they are covered by a collective bargaining agreement that includes the exemption. H.5943 remains in the House Labor Committee. S.857 remains in the Senate Labor Committee.
H.5245/S.185, Acts Relating to Public Utility and Carriers, create 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. The House bill remains in the House Corporations Committee. The Senate bill is in the Senate Finance Committee
H.5678/S.589, Acts Relating to Labor and Labor Relations – Minimum Wage – Overtime. Under current law, employers are not obligated to pay overtime to their executive, administrative, and professional employees who are compensated through salary rather than hourly wages, unless the salary of such employees would fall below the minimum wage. These bills would raise that cut-off and make additional salaried employees non-exempt and therefore eligible for overtime pay, based on differing formulas for small employers (up to 50 employees) and large employers (50 or more employees) Beginning 2026, the multiplier would be one and one-half times the minimum hourly wage for a 40-hour workweek for small employers and two times the minimum hourly wage for a 40-hour workweek for large employers. Essentially, this makes more employees subject to overtime payments. The bills remain in the House and Senate Labor Committees

House Finance Committee Passes Budget
The House Finance Committee passed a budget at about 11:30 p.m. Tuesday night. The $14.334 billion budget includes $45 million for primary care doctors, $38 million in extra money for hospitals, $12 million for nursing homes, and more money for education than provided for in the Governor’s budget. During the media briefing, the Speaker said, “Do I want to come back in October? No.” but he acknowledged it might be necessary if the federal government makes certain cuts to state grants or to state programs where federal funding is significant. The full House will vote on the budget Tuesday, June 17th.
How did the House Finance budget find revenues for these initiatives? Article 5 SubA contains many new tax proposals including the following:
· Whole homes that are rented for less than thirty days would be subject to the hotel tax. Currently, those properties are exempt.
· The hotel tax increased from 1% to 2%
· Real estate conveyance tax – the budget includes a 63% increase in the real estate conveyance tax which is paid at the time of sale of a property. Prior to 2021, all properties were taxed at $2.30 per $500 of sale price. In 2021, the General Assembly increased the tax on residential properties selling at a price over $800,000 – adding another $2.30 per $500 for the portion of the selling price over the threshold (sometimes referred to as Tier 2 properties). This year, an additional increase of 63% is included on both Tier 1 and Tier 2 properties. As an example, the median price for a Rhode Island home is $512,750. Under current law a seller of that home would pay $2,358.65 in conveyance tax at the time of sale. Article 5 SubA raises that tax to $3,845.63; and increase of $1,486.98. A home sold for $900,000 today would cost the seller $4,600 in conveyance tax. Article 5 SubA raises it to $7,500. The tax increase is estimated to raise $13.5 million in this fiscal year and $18.7 million in FY27.
· Sales tax is applied to short-term parking up to one month. Estimated to generate $1.6 million
· Gas tax increases by 2 cents per gallon with a majority of the revenues going to RIPTA. The existing gas tax law has an automatic adjustment every two years. On July 1, 2025, the gas tax will rise to $.38 a gallon (plus the $.01 per gallon environmental fee). The proposed budget will raise the gas tax to $.40 a gallon (plus $.01 environmental fee) for a total state tax of $.41 a gallon. Massachusetts gas tax is currently $.24 per gallon. Connecticut has a $.25 per gallon gas tax, but also has an 8.1% tax on gross earnings at the wholesale level, making it more difficult to compare.
· The Governor’s proposed tax on digital advertising was not included in the House budget. This tax was passed in one state and that state is in costly litigation while unable to collect the tax. The Speaker made it clear he was unwilling to rely on revenue from a tax structure that would be challenged in court leaving a hole in the budget.
· A new state tax on non-owner-occupied homes is included in this budget. Some media outlets have dubbed this the “Taylor Swift” tax. The language defines “non-owner occupied as “the residential property does not serve as the owner’s primary residence and is not occupied by the owner of the property for a majority of days during a given taxable year.” If the property has an assessed at a value over $1 million, and the property is not rented for more than 183 days during the previous taxable year and was subject to the
room reseller tax, or lodgings tax. The tax amounts to $2.50 for each $500 of assessed value in excess of $1 million. The tax is levied in addition to all other taxes assessed. The tax can be paid in four quarterly payments, with the first installment due September 15th of a given taxable year. To date, no estimate of revenue to be collected has been published.
· There are a number of fee increases in the budget: a $1 increase in the technology surcharge fee for vehicle registrations, a new $200 fee each time a battery electric vehicle is registered, $100 for a plug-in hybrid registration, a $50 fee for a hybrid electric vehicle, increased penalties for various law infractions.
One positive note in the budget – the Workers Compensation Administrative Fund was taken out of the Indirect Cost Recovery program. Currently the Department of Labor and Training (DLT) keeps 10% of the Workers’ Compensation Administrative Fund dollars paid by businesses. The Governor proposed to increase the percentage to 15%. The House budget eliminates the diversion of funds to DLT – keeping $3.6 million in the workers compensation administrative fund ultimately saving businesses money.




TCI Bill Amended on the Senate Floor Last Week
S.974aa, An Act Relating to Labor and Labor Relations – Temporary Disability Insurance – Contributions, was amended on the Senate floor to remove the language increasing the maximum number of weeks an employee can take for Temporary Care Giver (TCI) reasons. The bill originally proposed to increase the weeks to ten weeks in 2027 and twelve weeks in 2028. Under current law, employees may take up to seven weeks off in 2025 and eight weeks off starting January 1, 2026 to care for various family members. The Senate noted business concerns surrounding the challenges finding replacement employees as the reason for the amendment. The senate did add “siblings” to the language meaning employee can use TCI to care for siblings. https://webserver.rilegislature.gov/Billtext25/SenateText25/S0974aa.pdf
The House version – H.6066 is scheduled for a vote Monday in House Labor. The bill is posted in a SubA form to mirror the changes made on the Senate floor.
This Week At the State House
The General Assembly hopes to complete its work either Wednesday or Friday. The Juneteenth holiday prevents the legislature from coming into session Thursday. This edition of Advocacy in Action includes legislation scheduled for hearing or vote as of Sunday. The House and Senate may add bills throughout the week. If the legislative work is mpleted this week, bills will be transmitted to the Governor periodically over the following few weeks. The Chamber will send out a final legislative wrap-up once that process is concluded, providing a list of new laws business need to consider.
Monday, June 16th
Labor Relations Board
S.124 SubB and H.5187 SubA, Acts Relating to Labor and Labor Relations – Labor Relations Act changes the definition of “employee” under Rhode Island law. Members of the unions are pushing this bill as a means to head off any changes in the National Labor Relations Board. S.124 SubA was amended as the Chamber requested related to the definition of “employee.” The new definition reads “"Employee" specifically includes any teaching assistants, research assistants, fellows, residential assistants and proctors who perform services for an employer or are under an employer's control or right of control, in return for payment or other compensation, notwithstanding whether the employee is a student, or the supervised teaching, research, or other services are a component of their academic development.” These individuals are currently covered in Rhode Island. The S.124 SubB version and the new SubA version of 5187 proposes to eliminate language that defines the “right of control.” See https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/H5187A.pdf and https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/S0124B.pdf for the new language to be voted on Monday.


Captive Audience Bill
H.5506 SubA and S.126 SubA are scheduled for a vote Monday. These bills, Acts Related to Labor and Labor Relations – Employe Free Speech Rights, limit the First Amendment and Fourteenth Amendments rights of employers by barring them from holding mandatory meetings with employees to discuss any issue covered under the bill’s definition of “political matters.” The definition was tweaked only slightly. “Political matters” is defined as, “topics that are unrelated to the employer's business or business activities, such as subjects relating to elections for political office, political parties, proposals to change legislation or regulations which are not directly related to the employer's business, and a decision whether to join or support any political party or political, civic, community, fraternal or labor organization.” It is this very situation that was anticipated, and addressed by Congress under the Taft-Hartley Act of 1947. That federal law specifically allows employers to hold such meetings provided they do not threaten employees in the meeting. Both H.5506 SubA and S.126 SubA undermine the employer employee relationship. The amended language can be found at: http://webserver.rilegislature.gov/BillText/BillText25/Proposed25/H5506A.pdf and https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0126A.pdf
Retail Sales to Seniors
H.5831, An Act Relating to Commercial Law – Senior Savings Protection Act, requires any business engaged in the sale of goods or services who offers a discount to its customers for utilizing automatic payment systems, via ACH or EFT or similar payment systems, to provide the same discount to any person who is 65 years of age or older who makes a payment using paper checks. The bill is scheduled for a vote in the House Corporations Committee. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5831.pdf

This Week At the State House
The House posted the Budget for consideration in the House Finance Committee on both Tuesday and Wednesday. This will allow the committee to use Wednesday as a backup in the event the budget documents are not ready Tuesday. Legislative bills continue to post as the House and Senate reach agreements on some bills while opposing versions of others linger leaving their resolution in question. The following bills are posted for consideration and/or hearing this week.
Tuesday, June 10th
FY2026 Budget
House Finance has scheduled, H.5076, An Act Making Appropriations for the Support of the State for Fiscal year Ending June 30, 2026. The hearing will be live streamed, although the starting time is difficult to predict as it is dependent upon completion of documents. Livestreaming is available at https://capitoltvri.cablecast.tv

Noncompete Agreements
S.302, An Act Relating to Labor and Labor Relations – Rhode Island Noncompetition Agreement Act, is scheduled for a vote At the Rise in room 313. Current law bans businesses from entering into noncompete agreements with individuals that make 250% of the federal poverty level or less ($39,125 for a single person). S.302 would strike this language, making noncompete agreements illegal unless it is entered into as part of a sale of the business. The bill adds a provision allowing businesses to enter into agreements with employees not to share customer lists and future business plans. If an employee violates such an agreement, the employer can be awarded injunctive relief, compensatory damages, punitive damages, attorneys' fees and costs. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0302.pdf
Minimum Wage Increase
S.125, An Act Relating to Labor and Labor Relations – Minimum Wages, will be voted on in the Senate Labor Committee. This bill calls for five years of consecutive $1 increases, reaching $20 an hour in 2030. Last week the House passed a two-year increase of $1 per year, reaching $17 in 2027. The Chamber has been actively working on this issue with members of the General Assembly and Labor. Last Friday night, the Senate posted a SubA for S.125 to mirror the House two-year proposal. Massachusetts currently has a minimum wage of $15. Connecticut’s minimum wage is $16.35 with an automatic annual increase tied to the Employment Cost Index that is re-calculated each October 15th. https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/S0125A.pdf


“Mini” Employee Handbook
H.5679, An Act Relating to Labor and Labor Relations – Payment of Wages, is scheduled for a vote in amended form. The bill changes an employer’s responsibilities as it relates to providing a type of “mini employee handbook” (in English) to employees when they are hired. The information must include: rate or rates of pay and the basis for pay (hour, shift, day, week, salary, piece, commission, or other method), allowances, if any, for meals and lodging; employer's policy on sick, vacation, personal leave, holidays and hours; employee's employment status and whether the employee is exempt from minimum wage and/or overtime; a list of deductions that may be made from the employee's pay; number of days in the pay period, the regularly scheduled payday, and the payday on which the employee will receive the first payment of wages earned; legal name of the employer and the operating name of the employer, if different from its legal name; physical address of the employer's main office or principal place of business, and its mailing address if different; and telephone number of the employer. If passed, and signed by the Governor, the new law would go into effect upon passage. https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/H5679A.pdf
Outdoor Dining Temporary Building
H.6392, An Act Relating to Towns and Cities – Outdoor Dining Act, is scheduled for hearing, and perhaps quick passage. The bill allows a food service establishment to provide temporary outdoor dining services any time a building or other structure used as a food service establishment is rendered uninhabitable by virtue of a casualty i.e. fire or flood. The temporary building could be used for 18 months or until the building is fit for occupancy. If passed, the law would sunset June 30, 2027. This bill is directed at the Matunuck Oyster Bar. https://status.rilegislature.gov/documents/agenda-21107.aspx
The Senate version is also scheduled for hearing and possible consideration Tuesday in the Senate Committee on Housing & Municipal Government https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1139.pdf
Wednesday, June 11th
FY2026 Budget
House Finance has scheduled a second hearing date and time if needed. H.5076, An Act Making Appropriations for the Support of the State for Fiscal year Ending June 30, 2026, could be voted
on 5:00pm on June 11th, if the budget does not receive a vote Tuesday. The hearing will be live streamed. Livestreaming is available at https://capitoltvri.cablecast.tv
The following new bills have been filed:
House Bill No. 6387 Felix, Cortvriend, Diaz, Kislak, Corvese, Handy, Morales, Alzate, Stewart, Hull, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- RIDESHARE OR TRANSPORTATION NETWORK COMPANY VEHICLE SURCHARGE (Imposes a seventy-five cent (0.75) surcharge on fares charged by rideshare companies as well as an account to benefit RIPTA from the payment of sales taxes collected from rideshares.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6387.pdf
Senate Bill No. 1131 Zurier, Bissaillon, 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 seven percent (7%) per ticket. The tax shall be redistributed to the locality where the venue is located.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1131.pdf

This Week At the State House
We are awaiting the posting of the FY2026 budget in the House Finance Committee. The Committee is hoping to take it up this week for a vote. If that happens, the full House will debate and vote on the budget seven days later in accordance with the House rules. Meanwhile other committees are busy passing amended forms of bills that were heard over the last five months. Amendments to bills can be posted online 24 hours before the vote is taken and bills can be amended on the floor as well. The following is a list of bills scheduled for a vote or a hearing this week as of Sunday, June 1, 2025.
Monday, June 2nd
Senate Labor & Gaming Committee at 5:30 – Votes Only
S.70, An Act Relating to Payment of Wages, changes an employer’s responsibilities as it relates to providing employees with statements of earnings. Today employers must include the hours worked, deductions from gross earnings and an explanation of those deductions. The legislation adds items such as the last four digits of the social security number, deduction explanations in “understandable language and form,” the employer’s address and name, and output information if pay is based on quantity. The bill was altered compared to last year’s bill to clarify that employers must only keep records for three years which is consistent with current law. It also requires employers to provide a type of “mini employee handbook” to employees. The sponsor did change the bill to include English as the language for the handbook. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0070.pdf
S.124, An Act Relating to Labor and Labor Relations – Labor Relations Act changes the definition of “employee” under Rhode Island law. Members of the unions are pushing this bill as a means to head off any changes in the National Labor Relations Board. S.124 is scheduled to be amended as the Chamber requested related to the definition of “employee.” The new definition, if passed, will read “"Employee" specifically includes any teaching assistants, research assistants, fellows, residential assistants and proctors who perform services for an employer or are under an employer's control or right of control, in return for payment or other compensation, notwithstanding whether the employee is a student, or the supervised teaching, research, or other services are a component of their academic development.” These individuals are currently covered in Rhode Island. https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/S0124A.pdf
S.361, An Act Relating to Fair Employment Practices expands the current law to include menopause and menopause related conditions in the law on fair employment practices pertaining to pregnancy and pregnancy related conditions. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0361.pdf
S.586, An Act Relating to Health and Safety, requires employers, starting January 1, 2026, to protect employees from extreme temperatures through rest breaks, PPE, training, and equipment, and mandate training, to recognize and mitigate heat and cold-related risks. The act would require the department of health to establish and implement the training program. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0586.pdf
S.622, An Act Relating to Labor and Labor Relations, removes a sunset provision in the unemployment benefit arena. During the COVID-19 pandemic, the General Assembly and Governor increased the total amount of earnings a partial-unemployment insurance claimant could receive before being entirely disqualified for unemployment insurance benefits and increased the amount of earnings disregarded when calculating a weekly benefit rate. At the time, it was deemed necessary because jobs were hard to find as many places were forcibly closed by the state. The law is about to sunset June 30, 2025. S.622 removes the sunset, making the benefit calculation permit. The bill was introduced at the request of DLT. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0622.pdf
Tuesday, June 3rd
Senate Finance Committee is holding a hearing on one bill of interest at the Rise in room 211. S.1040, An Act Relating to Taxation – Tax on Gains from the Sale or Exchange of Real Property, was introduced May 9th for the first time. The bill creates a new tax on gains from the sale or exchange of real property held for six years or less.
*Gain, as a percentage of basis (tax cost)
Years property held by transferor 0-99% 100-199% 200% or more
Less than 4 months 60% 70% 80%
4 months, but less than 8 35% 52.5% 70%
8 months but less than 1 year 30% 45% 60%
1 year, but less than 2 25% 37.5% 50%
2 years, but less than 3 20% 30% 40%
3 years, but less than 4 15% 22.5% 30%
4 years, but less than 5 10% 15% 20%
5 years, but less than 6 5% 7.5% 10%
The bill can be viewed in its entirety at https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1040.pdf Testimony can be submitted to [email protected]


House Labor Committee Vote At the Rise


H.5029, An Act Relating to Labor and Labor Relations – Minimum Wage is scheduled for a vote. The SubA posted version calls for two increases in the minimum wage - $16 starting January 1, 2026; and $17 starting January 1, 2027. This amended version does not include the business community’s request to phase out the Sunday premium pay requirements that only exist in this state and no other. https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/H5029A.pdf
The following new bills have been filed:
House Bill No. 6365 Cotter, Carson, Speakman, Boylan, Spears, Potter, Cruz, Stewart, Giraldo, Casimiro, AN ACT RELATING TO TAXATION -- RETAIL DELIVERY FEE (Imposes a fifty cent delivery fee (tax) per transaction for deliveries in the state.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6365.pdf
House Bill No. 6378 Morales, Shallcross Smith, Felix, Cruz, Potter, Stewart, Giraldo, AN ACT RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT (Provides for the sealing of eviction records under certain circumstances.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6378.pdf