 The Rhode Island Division of Taxation has posted a plain-language summary of key tax provisions that were enacted in the 2022 session of the Rhode Island General Assembly.
Most of the tax changes were enacted in the budget bill for the 2023 fiscal year. Some of the changes were enacted in stand-alone legislation. View a copy of the Division's Summary of Legislative Changes: https://tax.ri.gov/sites/g/files/xkgbur541/files/2022-07/ADV_2022_17_summary_of_legislative_changes.pdf
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Under the Dome New Law 2022 Wrap Up
We, at the Chamber, hope you are enjoying your summer. The House and Senate have been transmitting bills periodically to Governor McKee for his consideration. As explained earlier, this is a normal process to avoid inundating the Governor with hundreds of bills to sign, veto or allow to go into law without his signature, within a seven-day period. It is finally time to release a list of 30 new laws passed in 2022 that touch the business community. There are many other laws that passed this year, but in the interest of time and space, we have limited the report to these 30 new laws. We have included the names of the sponsors of each bill to assist you in your election considerations this year. Labor Laws Senate Bill No. 2242 Chapter 074, Burke, Archambault, DiMario, Valverde, Coyne, Ciccone, Raptakis, McCaffrey, Cano, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Repeals § 28-12-9 of the general laws which provides that the director of labor and training may approve of wages below the minimum wage for those persons whose earning capacity is impaired due to physical or mental disability.) House Bill No. 7511 Chapter 073, Shekarchi, Ackerman, Bennett, McNamara, Shanley, Messier, Azzinaro, Kennedy, Serpa, Batista, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Repeals § 28-12-9 of the general laws which provides that the director of labor and training may approve of wages below the minimum wage for those persons whose earning capacity is impaired due to physical or mental disability.) Senate Bill No. 2246 SUB A Chapter 246, Kallman, Coyne, Sosnowski, Goodwin, Acosta, Zurier, Mack, Cano, DiPalma, Seveney, AN ACT RELATING TO LABOR AND LABOR RELATIONS - TIP PROTECTION (Prohibits employers from receiving any portion of the tips given by customers to their tipped employees, with limited exceptions for credit card service charges.) House Bill No. 7510 SUB A Chapter 245, Morales, Felix, Williams, Alzate, Kislak, Tanzi, Speakman, Henries, Vella-Wilkinson, McEntee, AN ACT RELATING TO LABOR AND LABOR RELATIONS - TIP PROTECTION (Prohibits employers from receiving any portion of the tips given by customers to their tipped employees, with limited exceptions for credit card service charges.) Senate Bill No. 2412 SUB A as amended Chapter 233, Cano, Quezada, Lawson, Kallman, Ciccone, Burke, DiPalma, Murray, Acosta, Euer, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- BUILDING SERVICE WORK (Requires that janitors and security guards employed, pursuant to state contracts worth more than one thousand dollars ($1,000) of janitorial or security services, be paid a standard compensation rate.) House Bill No. 7200 SUB A as amended Chapter 232, Diaz, Slater, Amore, Morales, Biah, Alzate, Cortvriend, Kazarian, Batista, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- BUILDING SERVICE WORK (Requires that janitors and security guards employed, pursuant to state contracts worth more than one thousand dollars ($1,000) of janitorial or security services, be paid a standard compensation rate.) Senate Bill No. 2418 SUB A Chapter 082, Gallo, Pearson, Goodwin, Lombardo, Murray, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT OF WOMEN AND CHILDREN (Requires children who seek a special limited work permit to successfully complete a worker rights' training program established and funded by the department of labor and training.) House Bill No. 6652 Chapter 081, Noret, Casimiro, Vella-Wilkinson, Alzate, Solomon, Craven, Amore, Casey, S Lima, J Lombardi, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT OF WOMEN AND CHILDREN (Same as 21H-5619 -- Requires children who seek a special limited work permit to successfully complete a training program which shall address workers' rights, workplace health and safety, and workers' compensation, to be established and funded by the DLT.) Senate Bill No. 2551 SUB B Chapter 272, Kallman, McCaffrey, Gallo, DiMario, Ruggerio, Miller, Lawson, Valverde, Seveney, Lombardo, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- REBUILD RHODE ISLAND TAX CREDIT (Defines "construction worker" and provides for wage and benefits in accordance with chapter 13 of title 37.) House Bill No. 7985 SUB A Chapter 271, Potter, Alzate, Slater, Diaz, Bennett, J Lombardi, Amore, Henries, Morales, O'Brien, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- REBUILD RHODE ISLAND TAX CREDIT (Requires that all entities receiving tax credits from the state pay their workers the prevailing wage or other payments pursuant to § 37-13. This act would also allow the revocation of the tax credits for violation of this act.) These bills are identical. Senate Bill No. 2666 SUB A Chapter 116, DiPalma, Seveney, Cano, Quezada, Gallo, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- DEPARTMENT OF LABOR AND TRAINING--DIGITAL CREDENTIALING (Mandates the department of labor and training to require publicly funded workforce and training programs to supplement all paper-based credentials with verified electronic credentials.) House Bill No. 8056 SUB A Chapter 115, Messier, Fellela, Barros, Baginski, Alzate, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- DEPARTMENT OF LABOR AND TRAINING--DIGITAL CREDENTIALING (Mandates the department of labor and training to require publicly funded workforce and training programs to supplement all paper-based credentials with verified electronic credentials.) Senate Bill No. 2816 SUB A Chapter 118, (Dept. of Labor and Training) Goodwin, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY -- GENERAL PROVISIONS (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.) House Bill No. 7863 SUB A Chapter 117, (Dept. of Labor and Training) McEntee, Caldwell, Morales, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY--GENERAL PROVISIONS (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.) Senate Bill No. 2977 Chapter 248, Ciccone, F Lombardi, McCaffrey, Goodwin, de la Cruz, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION (This act is the annual workers' compensation omnibus.) House Bill No. 8259 Chapter 247, Williams, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION (This act is the annual workers' compensation omnibus.) Environmental Laws Senate Bill No. 2044 SUB A Chapter 293, Seveney, DiPalma, Euer, DiMario, Cano, Kallman, Coyne, Miller, Pearson, McCaffrey, AN ACT RELATING TO HEALTH AND SAFETY -- TOXIC PACKAGING REDUCTION ACT (Prohibits the sale or promotional distribution of any food package in Rhode Island which contains perfluoroalkyl and polyfluoroalkyl substances (PFAS), effective January 1, 2024.) House Bill No. 7438 SUB A Chapter 294, Cortvriend, Speakman, Carson, Morales, Marszalkowski, McGaw, Ruggiero, Fogarty, Donovan, Kislak, AN ACT RELATING TO HEALTH AND SAFETY -- TOXIC PACKAGING REDUCTION ACT (Prohibits the sale or promotional distribution of any food package containing perfluoroalkyl and polyfluoroalkyl substances (PFAS), effective January 1, 2024. Provisions of § 23-18.13-3(g)(3) sunset on July 1, 2027.) Senate Bill No. 2274 SUB A as amended Chapter 218, Ruggerio, McCaffrey, Goodwin, Euer, Kallman, DiMario, Gallo, Miller, Sosnowski, Felag, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY (Increases the percentage of retail electricity sales from renewable energy sources.) House Bill No. 7277 SUB A Chapter 226, Ruggiero, Bennett, Handy, Potter, Hull, Diaz, Kazarian, Speakman, Carson, Donovan, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS-RENEWABLE ENERGY (Increases the percentage of retail electricity sales from renewable energy sources.) Senate Bill No. 2446 Chapter 176, Ruggerio, McCaffrey, Goodwin, Gallo, DiMario, Kallman, Miller, Burke, Sosnowski, Lawson, AN ACT RELATING TO HEALTH AND SAFETY - PLASTIC WASTE REDUCTION ACT (Creates the "Plastic Waste Reduction Act" designed to reduce the use of plastic bags by retail establishments by offering recyclable bag options and providing penalties for violations.) House Bill No. 7065 SUB A Chapter 177, McEntee, Cortvriend, Speakman, Donovan, Carson, Caldwell, Craven, Morales, Kislak, Ruggiero, AN ACT RELATING TO HEALTH AND SAFETY -- PLASTIC WASTE REDUCTION ACT (Creates the "Plastic Waste Reduction Act" designed to reduce the use of plastic bags by retail establishments by offering recyclable bag options and providing penalties for violations.) Senate Bill No. 2740 SUB B Chapter 381, Ruggerio, McCaffrey, Goodwin, Euer, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- LABOR STANDARDS IN RENEWABLE ENERGY PROJECTS (Adds a new chapter known as the Labor Standards in Renewable Energy Projects.) House Bill No. 8074 SUB A Chapter 380, Solomon, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- LABOR STANDARDS IN RENEWABLE ENERGY PROJECTS (Established labor standards applicable to renewable energy projects and conditions/procedures for applicants related to labor agreements with enforcement by department of labor and training (DLT).) House Bill No. 7611 SUB A Chapter 374, Carson, Alzate, Bennett, Solomon, Cortvriend, Ranglin-Vassell, Giraldo, Abney, Donovan, Speakman, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- 2021 ACT ON CLIMATE (Establishes the Rhode Island executive climate change coordinating council equity and environmental justice advisory board to advise on decision-making and equitable outcomes.) Health Insurance Related Laws Senate Bill No. 2201 SUB A Chapter 151, Goodwin, McCaffrey, Coyne, Miller, Pearson, Gallo, Ruggerio, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES -- BIOMARKER TESTING COVERAGE (Requires health insurers, nonprofit hospital service corporations, nonprofit medical service corporations and health maintenance organizations that issue policies that provide coverage for biomarker testing on or after 1/1/23.) House Bill No. 7587 SUB A Chapter 152, Ackerman, McNamara, Serpa, Chippendale, Bennett, Baginski, Filippi, Diaz, Amore, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES -- BIOMARKER TESTING COVERAGE (Requires health insurers, nonprofit hospital service corporations, nonprofit medical service corporations and health maintenance organizations that issue policies that provide coverage for biomarker testing on or after 1/1/23.) Senate Bill No. 2203 SUB B as amended Chapter 423, Lawson, DiMario, Burke, Murray, Cano, Quezada, Valverde, AN ACT RELATING TO INSURANCE (Requires coverage for the treatment of pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections/pediatric acute onset neuropsychiatric syndrome, including, but not limited to, the use of intravenous immunoglobin therapy.) House Bill No. 7503 SUB B as amended Chapter 422, Amore, Henries, AN ACT RELATING TO INSURANCE (Requires coverage for treatment of pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome, including, but not limited to, the use of intravenous immunoglobin therapy.) Senate Bill No. 3035 Chapter 371, Cano, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Provides health care coverage for laparoscopic removal of uterine fibroids, including uterine artery embolization intraoperative ultrasound guidance and monitoring and radiofrequency ablation, commencing January 1, 2023.) House Bill No. 7561 Chapter 370, Vella-Wilkinson, Williams, Noret, Ruggiero, Serpa, Diaz, Casimiro, Baginski, Kazarian, Alzate, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Provides health care coverage for laparoscopic removal of uterine fibroids, including uterine artery embolization intraoperative ultrasound guidance and monitoring and radiofrequency ablation, commencing January 1, 2023.) Parking Lot Requirements Senate Bill No. 2345 Chapter 240, Acosta, Cano, Valverde, DiMario, Zurier, Anderson, Calkin, Mack, Miller, DiPalma, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- PARKING FACILITIES AND PRIVILEGES (Requires motor vehicle parking spaces in lots with >100 spaces specifically designed for persons transporting young children under the age of 3/baby strollers except for single-family/duplex/townhouse/multifamily residences/industrial zoned properties.) House Bill No. 7743 Chapter 239, Giraldo, Williams, Morales, Alzate, Felix, Barros, Amore, Biah, AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- PARKING FACILITIES AND PRIVILEGES (Requires motor vehicle parking spaces in lots with >100 spaces specifically designed for persons transporting young children under the age of 3/baby strollers except for single-family/duplex/townhouse/multifamily residences/industrial zoned properties.) Business Administrative Laws Senate Bill No. 2093 Chapter 108, F Lombardi, Archambault, McCaffrey, Euer, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE IN PARTICULAR ACTIONS -- RHODE ISLAND COMMERCIAL RECEIVERSHIP ACT (Creates temporary non-liquidating receivership program for businesses with substantial revenue decline after declared emergency/suspended/ceased substantial part of operation resulting by emergency police/regulatory powers.) House Bill No. 7895 Chapter 107, Craven, Caldwell, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE IN PARTICULAR ACTIONS -- RHODE ISLAND COMMERCIAL RECEIVERSHIP ACT (Creates temporary non-liquidating receivership program for businesses with substantial revenue decline after declared emergency/suspended/ceased substantial part of operation resulting by emergency police/regulatory powers.) Senate Bill No. 2645 SUB A Chapter 238, Euer, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- FILING OF ASSUMED NAME (Requires individuals transacting business in RI under any assumed name to file in person, by mail, or electronically with the office of the city or town clerk the true or real full name(s) of the person(s) transacting business and their email address.) House Bill No. 8001 Chapter 237, Carson, Cortvriend, Donovan, Speakman, Edwards, McGaw, Ruggiero, Abney, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- FILING OF ASSUMED NAME (Requires individuals transacting business in RI under any assumed name to file in person, by mail, or electronically with the office of the city or town clerk the true or real full name(s) of the person(s) transacting business and their email address.) Senate Bill No. 2812 Chapter 122, (Secretary of State) F Lombardi, Euer, Archambault, Ciccone, Lombardo, McCaffrey, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- UNIFORM LIMITED PARTNERSHIP ACT (Enacts the Rhode Island Limited Partnership Act to govern the law of limited partnerships in this state and repeal chapter 12 of title 7 entitled "Limited Partnerships".) House Bill No. 7603 Chapter 121, (Secretary of State) Amore, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- UNIFORM LIMITED PARTNERSHIP ACT (Enacts the Rhode Island Limited Partnership Act to govern the law of limited partnerships in this state and repeal chapter 12 of title 7 entitled "Limited Partnerships".) Senate Bill No. 2813 Chapter 124, (Secretary of State) F Lombardi, Euer, Archambault, Ciccone, Lombardo, McCaffrey, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- UNIFORM PARTNERSHIP ACT (Enacts the Uniform Partnership Act to govern the law of partnerships in this state.) House Bill No. 7753 Chapter 123, (Secretary of State) Amore, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- UNIFORM PARTNERSHIP ACT (Enacts the Uniform Partnership Act to govern the law of partnerships in this state.) General Business or Industry Specific Laws Senate Bill No. 2132 SUB A Chapter 033, Murray, Raptakis, Seveney, DiMario, Lawson, Kallman, AN ACT RELATING TO ALCOHOLIC BEVERAGES -- RETAIL LICENSES (Holders of Class B licenses shall offer the public food during times alcoholic beverages are sold to the public.) House Bill No. 7417 SUB A Chapter 034 Hawkins, Cardillo, Bennett, O'Brien, Noret, Kazarian, Caldwell, Biah, Phillips, AN ACT RELATING TO ALCOHOLIC BEVERAGES -- RETAIL LICENSES (Holders of Class B licenses shall offer the public food during times alcoholic beverages are sold to the public.) Senate Bill No. 2134 Chapter 002, DiMario, Picard, Acosta, Euer, Lawson, Valverde, DiPalma, Zurier, Murray, Burke, AN ACT RELATING TO TOWNS AND CITIES -- SMALL BUSINESSES -- ZONING ORDINANCES (Imposes one year moratorium on enforcement of municipal ordinance or zoning requirement that penalizes owners of food service establishments/bars for modifications/alternations to their premises in response to an emergency declaration.) House Bill No. 7095 Chapter 001, McEntee, Carson, Alzate, Caldwell, Costantino, Cortvriend, Craven, Morales, Batista, Kazarian, AN ACT RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES (Extends the period for the moratorium imposed on the enforcement of any municipal ordinance or zoning regulation relating to any alterations or modifications made to an establishment in order to comply with emergency declarations until April 1, 2023.) Senate Bill No. 2153 as amended Chapter 004, Gallo, AN ACT RELATING TO ALCOHOLIC BEVERAGES -- MANUFACTURING AND WHOLESALE LICENSES -- RETAIL LICENSES (Repeals 3/1/22 sunset provision allowing Class B/brew pub licensees to sell wine/beer/mixed drinks with food takeout orders only.) House Bill No. 7209 SUB A Chapter 003, Baginski, McEntee, Caldwell, AN ACT RELATING TO ALCOHOLIC BEVERAGES -- MANUFACTURING AND WHOLESALE LICENSES -- RETAIL LICENSES (Repeals 3/1/22 sunset provision allowing Class B/brew pub licensees to sell wine/beer/mixed drinks with food takeout orders only.) Senate Bill No. 2430 SUB A as amended Chapter 032, Miller, McCaffrey, Goodwin, Ruggerio, Coyne, Pearson, Acosta, Kallman, Archambault, Murray, AN ACT RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND CANNABIS ACT (The Rhode Island Cannabis Act legalizes adult use of cannabis. It provides for licensing of cultivation, manufacture and retail sale of cannabis.) House Bill No. 7593 SUB A as amended Chapter 031, Slater, Hull, Williams, Kazarian, Solomon, McNamara, O'Brien, Potter, Bennett, Morales, AN ACT RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND CANNABIS ACT (The Rhode Island Cannabis Act legalizes adult use of cannabis. It provides for licensing of cultivation, manufacture and retail sale of cannabis.) Senate Bill No. 2432 Chapter 345, Sosnowski, DiPalma, Murray, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS--DECEPTIVE TRADE PRACTICES (Amends how credit bureaus doing business in Rhode Island may disclose to inquiring users of credit reports by requiring that in addition to the social security number, the name matches the identity of the person who is the subject of the inquiry.) House Bill No. 8346 Chapter 344, Solomon, Casey, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS--DECEPTIVE TRADE PRACTICES (Amends how credit bureaus doing business in Rhode Island may disclose to inquiring users of credit reports by requiring that in addition to the social security number, the name matches the identity of the person who is the subject of the inquiry.) Senate Bill No. 2492 SUB A Chapter 192, Murray, Raptakis, Bell, Lawson, Seveney, AN ACT RELATING TO ALCOHOLIC BEVERAGES - MANUFACTURING AND WHOLESALE LICENSES (Authorizes manufacturer-breweries to sell up to three (3) drinks on premises per visitor per day, where a drink is defined as up to sixteen ounces (16 oz.).) House Bill No. 7727 SUB A Chapter 193, McEntee, Caldwell, Cortvriend, O'Brien, AN ACT RELATING TO ALCOHOLIC BEVERAGES - MANUFACTURING AND WHOLESALE LICENSES (Authorizes manufacturer-breweries to sell up to three (3) drinks on premises per visitor per day, where a drink is defined as up to sixteen ounces (16 oz.) of beer or one and one-half ounces (1.5 oz.) of spirits.) Senate Bill No. 2511 SUB A as amended Chapter 236, Ciccone, McCaffrey, Burke, Goodwin, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- HOTELS (Requires online posting of hotel rules. Allows ejection of person for verbally abusing or physically threatening a hotel employee or guest. Permits refusal of service to anyone under the age of 18, unless accompanied by an adult.) House Bill No. 7910 SUB A Chapter 235, Bennett, Carson, McEntee, Baginski, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- HOTELS (Provides reasons for an innkeeper to remove guests from a hotel, and permits an innkeeper to refuse admission to a person under eighteen (18) years of age.) Senate Bill No. 2855 SUB A Chapter 281, Gallo, Goodwin, Pearson, Lombardo, Ciccone, Miller, AN ACT RELATING TO HEALTH AND SAFETY -- STATE BUILDING CODE (Increases the current levy on construction costs for residential building permits to be deposited into an exempt restricted receipts account to be used for training grants, including programs for local and state building officials and minority businesses.) House Bill No. 7332 SUB A Chapter 280, McNamara, AN ACT RELATING TO HEALTH AND SAFETY -- STATE BUILDING CODE (Increases the levy on total construction costs that cities and towns may charge for building permits and directs that fifty percent (50%) each of the levy be transmitted monthly to the department of labor and training for workforce training.) Senate Bill No. 2794 Chapter 339, (Dept. of Business Regulation) Sosnowski, AN ACT RELATING TO FINANCIAL INSTITUTIONS -- CREATION AND EXPANSION (Amends a number of provisions in the general laws relative to financial institutions by eliminating unnecessary requirements and/or clarifying language in order to reduce certain burdens on businesses operating in Rhode Island.) House Bill No. 7781 SUB A Chapter 338, (Dept. of Business Regulation) Solomon, AN ACT RELATING TO FINANCIAL INSTITUTIONS -- CREATION AND EXPANSION (Amends a number of provisions in the general laws relative to financial institutions by eliminating unnecessary requirements and/or clarifying language in order to reduce certain burdens on businesses operating in Rhode Island.)  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
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:
 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:
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:  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:
Other policy-related items included in the budget are:
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)  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 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 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. 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:
There are no new bills to report this week. Call to Action – Unemployment Trust Fund Replenishment
The Chamber needs your help! Last week we provided testimony again, asking for a full replenishment of the Unemployment Trust Fund. 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. As we all know, some very bad people took advantage of the pandemic by filing multiple fraudulent claims. We know that at least $70 million in fraudulent claims were paid out in Rhode Island (that number could change when the updated data is released). 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. Thank you!!! This Week at the State House On Tuesday, May 3rd, the House Finance Committee will take testimony on many pieces of legislation. Among them are H.7440, An Act Relating to Taxation – Personal Income Tax and H.7659, 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 $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. H.7659 would create a new income tax bracket at a rate of 6.99% on taxable income over $500,000. The funds collected from this new proposed bracket would be deposited into a restricted receipt account to pay for school building and school housing aid. Lastly H.7654, An Act Relating to Taxation – Business Corporate Tax will be heard on Tuesday. The bill imposes an additional tax on corporations equal to the tax cut created by the 2017 Tax Cuts and Jobs Act. It also eliminates the qualified business income deduction created by the 2017 Tax Cuts and Jobs Act available to pass-through entities. If passed, the bill would take effect on January 1, 2024. The language can be viewed at: http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7654.pdf On Wednesday, May 4th, the Senate Committee on Environment and Agriculture will hear testimony on more environmental mandate bills. S.2448, An Act Relating to Motor and Other Vehicles is identical to a bill heard last week in the House Finance Committee (H.7653). At that hearing, the business community expressed a need for a holistic approach as the State tries to meet the mandated targets passed in last year’s Act on Climate. The chamber pointed out that it is imperative to perform a cost/benefit analyses prior to passage of more legislative mandates. The issues contained in S.2448 and H.7653 need to be a part of the analysis; but all of the options, costs, benefits, transition timetables, etc. should be laid out for the General Assembly prior to moving forward on any legislation. S.2448 requires 100% of all privately owned passenger and light-duty vehicles of model year 2030 or later “registered” in Rhode Island to be electric vehicles. That would mean anyone living in the state who purchased a fossil fuel vehicle outside Rhode Island or anyone moving to the state with a fossil fuel model 2030 vehicle would not be permitted to register the car here. For the person moving here from another state, that person would have to sell the car and purchase a new one in order to relocate to Rhode Island. This could be a deterrent for employers attempting to attract employees. Today in Rhode Island, there are approximately 500,000 car registrations (not including commercial vehicles). As of December 3, 2021, electric vehicle (EV) registrations accounted for 4,540 vehicles. According to Market Watch an EV car that drives 540 miles a month uses 180kwh a month. That means that the electric grid must find 180 kwh x 12 months (2,160 kwh a year) to meet the demand for each new EV purchased. Even if only 37% of the cars flipped to EVs in Rhode Island then it appears as if the electricity grid will need to find 33GW of new electricity per month (180 kwh x 185,000 EV vehicles). At a Senate Environment and Agriculture hearing earlier this year, ISO New England, the independent organization responsible for ensuring the region has reliable electricity supply, stated that it currently plans for summer peak demand because that is when New England experiences the highest usage of electricity. The “region’s all time summer peak demand was 28,130 MW on August 2, 2006.” (ISO-NE presentation can be viewed at: http://ritv.devosvideo.com/show?video=c4d8d4c3f5fc&apg=634c8273 ) The supply of electricity, which under the Act on Climate must be from renewable energy sources only, is a big concern to the Chamber of Commerce. No legislation should move forward until the state can determine how to ensure a reliable source of electricity will be available. Without reliable energy, businesses cannot operate. The following new bills were filed last week: House Bill No. 8164 Hawkins, Cardillo, Phillips, Biah, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- ELECTRICIANS (Expands the types of electrical services that require an electrical contractor's license.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8164.pdf House Bill No. 8192 Casimiro, Baginski, Noret, Solomon, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- EVIDENCE AND OVERSIGHT ACT OF 2022 (Creates the Evidence and Oversight Act of 2022 to create and maintain a data transparency portal.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8192.pdf House Bill No. 8195 Henries, Morales, Felix, Alzate, Kazarian, Biah, Speakman, Ranglin-Vassell, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- DIGNITY AT WORK ACT (Establishes a broad and comprehensive framework to provide workers with more protection and remedies from bullying and harassment in the workplace.) http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H8195.pdf Senate Bill No. 2892 Kallman, McCaffrey, Goodwin, Cano, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX--CAPITAL GAINS (Amends the capital gains tax rates and holding period from 5 years to 1 year. Imposes a non-owner occupied tax on homes assessed at more than $1,000,000. Increases estate tax exemption to $2,225,000.) http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2892.pdf Senate Bill No. 2895 Picard, AN ACT RELATING TO TAXATION -- STATE TAX OFFICIALS (Waives interest and penalties on the taxable portion of loans taxed or forgiven under the Paycheck Protection Program during tax years 2020 and 2021, provided any tax due is paid by March 31, 2022 and March 31, 2023, respectively.) http://webserver.rilin.state.ri.us/BillText/BillText22/SenateText22/S2895.pdf |
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