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​​Chamber Connections BLOG

Under the Dome: Advocacy in Action: Governor McKee’s “Affordability for All” Agenda

1/20/2026

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Governor McKee’s “Affordability for All” Agenda In his 2026 State of the State Address last Tuesday, Governor Dan McKee laid out his vision for the year ahead, which was followed on Thursday by his Fiscal Year 2027 budget Proposal, comprised of H 7126 (FY26 Revisions), H 7127 (FY27 Appropriations). See also the Executive Summary. Facing a $100M+ structure deficit, and with state expenses growing faster (3.5%) than revenues (2.4%), Governor McKee introduced a budget for FY27 of $14.9B, a roughly $500M increase over FY26, that would eliminate state income tax on Social Security benefits, create a child tax credit, lower the gas tax by five percent, and backfill portions of expired Affordable Care Act subsidies, and provides annual utility bill relief averaging $180 per household, among other investments and savings. Most notably, to cover the deficit and pay for new expenditures, the Governor intends to add 3% to the top tax bracket, from 5.99% to 8.99%, for those earning incomes above $1M beginning in 2027. This projects to raise $67.1M in FY27, and $135.5M in FY28. He also calls for the implementation of a Line-Item Veto, which would allow forstriking specific items from the budget bill without having to approve or veto it in the entirety. Over the next few editions of Advocacy in Action, we will share summaries of the various Articles of interest to the business community. Article 5 – Relating to Taxes and Fees Article 5 proposes a variety of tax and fee changes: • Section 1 – Tax Amnesty o Projected to generate $26.3M in FY27, the budget proposes a tax amnesty program to help collect outstanding tax debts prior to 12/31/25 that would waive penalties and reduce interest owed by 25% for participants in the program that would run from December 2026 to February 2027. • Section 2 – Business Corporation Tax o For tax years beginning 1/1/27, any pass-through entities electing to pay the state tax at the entity level would see the rate increase from 5.99% to 8.99%. o Projected to generate $22.6M in FY27 and diminishing amounts thereafter, the budget proposes decoupling the state’s tax code from the federal government regarding changes to the research and development tax provisions. • Sections 3&4 – Cigarette & Cigar Taxes o Projected to raise $8M together, these proposals would: ▪ Raise by 75 cents the cigarette tax, from $4.50 to $5.25 per pack. ▪ Eliminate the 1.25% discount on cigarette tax stamps purchased by distributors. ▪ Increases the cap on the cigar tax from 50 cents to $2.00. • Section 5 – Child Tax Credit o The current dependent tax deduction fails to reach approximately 20,000 filers with dependents who do not make enough to benefit from the exemption. The budget proposes to convert this to a fully refundable tax credit of $325 per child per year, at a projected cost of $14.7M in FY27 and $29.7M in FY28 when fully implemented. • Section 6 – Million Dollar Tax Bracket; Social Security Tax Phase Out o For the 2027 tax year and beyond, the budget proposes a 3% increase to a new top tax bracket, from 5.99% to 8.99%, for income above $1M, which is estimated to generate $67.1M in FY27, and $135.5M in FY28 when fully implemented. o The budget also proposes phasing out the state tax on Social Security, by eliminating the age threshold in 2027, and phasing out the income thresholds over tax years 2028 and 2029. Eliminating the tax in this manner projects to cost $3M in FY27, and reach $60.1M in FY30, the first full fiscal year after the phase-out is fully implemented in tax year 2029. • Section 7 – Motor Vehicle Excise Tax Reimbursement o The budget proposes to eliminate the statutory inflator for Car Tax Reimbursements to communities, freezing it at the current $239.6M, which would result in a state savings of $4.8M in FY27, and grow to $24.9M in FY31. • Section 8 – Newport Cruise Vessel Fees o The budget proposes a $5 increase per passenger, from $10 to $15, on each cruise ship that arrives at or departs from Newport. Newport currently retains the $10 per passenger fee the municipal level, and the additional $5 per passenger fee would be allocated to support This Week at the State House Tuesday, January 20th Safety Barriers 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 7021 which would require commercial property owners to install vehicle barriers at their retail establishments when new construction or renovations are being done and permits insurers to consider the installation to provide a discount on the owner's insurance policy. Testimony should be emailed to [email protected] Sugary Beverages The House Corporations will also conduct a hearing on H 7065, which would require 50% reduction in the amount of added sugars in all liquid beverages sold in Rhode Island on and after January 1, 2030. Testimony should be emailed to [email protected] Mr. Potato Head License Plate The House Special Legislation Committee has on its agenda for Tuesday at the Rise in Room 135 H 7085, which would repeal the authorization for issuing Mr. Potato Head license plates. Under the proposal, no new plates would be issued, and current plates may remain until any lapse, nonrenewal, revocation, destruction or loss occurs. No transfers of plates would be allowed. CHAMBER MEMBER ACTION REQUEST - Preparations for 2026 Session If you attended the January “Eggs and Issues” breakfast with the Speaker of the House, you heard him say loudly and clearly that businesspeople must be engaged with their state Representatives and Senators or face the passage of harmful legislation. Legislators are not experts in your business. They need to hear from you directly in order to understand the challenges you confront on a daily basis. Throughout the legislative session, the Chamber may be calling on you, asking for your assistance conveying our message on legislation to legislators. Please go to https://vote.sos.ri.gov and click on “Find Your Elected Officials.” Enter your zip code and address. Find your “Representative District” legislator and your “Senate District” legislator (if you live in Rhode Island). Email your name and the legislators name to [email protected]. The Chamber will be compiling a database for future grassroots efforts. If you also know a legislator who lives in another district, please send that information to the Chamber as well and we will include it in the database. Thank you for your help! The following new bills have been filed: Senate Bill No. 2075 BY Rogers, Paolino, Morgan, de la Cruz ENTITLED, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION (Requires the PUC to produce yearly reports beginning on January 1, 2027 on the ability of the current electric grid to handle electrification loads needed to power cars, buildings, and heating of homes within the state.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2075.pdf Senate Bill No. 2080 BY Rogers, de la Cruz, Morgan ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- 2021 ACT ON CLIMATE (Repeals the 2021 Act on Climate which established a statewide greenhouse gas emission reduction mandate in its entirety.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2080.pdf Senate Bill No. 2082 BY Paolino, Morgan, Rogers, de la Cruz, Appollonio, Famiglietti, Raptakis, Patalano, Dimitri, Sosnowski ENTITLED, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Phases out the local meals and beverage tax by January 1, 2030.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2082.pdf Senate Bill No. 2085 BY DiMario, Lawson, Gallo, Valverde, Murray, Kallman, Acosta, Vargas, Lauria, Quezada ENTITLED, AN ACT RELATING TO HUMAN SERVICES -- THE RHODE ISLAND WORKS PROGRAM (Eliminates the sunset on the provision of funding, modify eligibility requirement to 85% of state median income and expand funding to at least 20 hours per week.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2085.pdf Senate Bill No. 2092 BY Kallman, Lawson, Urso, Valverde, Zurier, Pearson, Mack, Ujifusa, DiPalma ENTITLED, AN ACT RELATING TO MOTOR AND OTHER VEHICLES --RIDESHARE OR TRANSPORTATION NETWORK COMPANY VEHICLE SURCHARGE (Imposes a seventyfive 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/BillText26/SenateText26/S2092.pdf Senate Bill No. 2103 BY de la Cruz, Rogers, Paolino, Morgan ENTITLED, AN ACT RELATING TO PUBLIC FINANCE -- STATE BUDGET (Requires that the governor submit a zero-based budget to the general assembly with the zero-based budget phased in over a five (5) year period, commencing with the fiscal budget year of July 1, 2027.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2103.pdf Senate Bill No. 2110 BY Lauria, Lawson, DiMario, Murray, Valverde, Kallman, Ujifusa, Pearson, Zurier, Urso ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- CATASTROPHIC ILLNESS IN CHILDREN RELIEF FUND (Establishes Children's Catastrophic Illness in Children Relief Fund to provide finance assistance to families for medical expenses not covered by state or federal programs or insurance contract.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2110.pdf Senate Bill No. 2113 BY Lauria, Murray, Kallman, Ujifusa ENTITLED, AN ACT RELATING TO FOOD AND DRUGS -- HEALTHY KIDS ACT (Mandates that all restaurants offering children's meals offer at least two (2) children's meals that complies with certain detailed nutritional standards set forth in the act.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2113.pdf Senate Bill No. 2160 BY LaMountain ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND NONCOMPETITION AGREEMENT ACT (Prohibits noncompete agreements except for noncompete agreements between a seller and buyer of a business; creates civil action for an employer for the violation of an agreement by employee regarding disclosure or wrongful utilization of trade secrets.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2160.pdf Senate Bill No. 2166 BY Kallman, Ciccone, Burke, Sosnowski, Euer, Britto, Urso, Thompson, Dimitri ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES--OVERTIME (Requires small employers with one to fifty (1-50) employees and large employers with fifty (50) or more employees to pay overtime wages to exempt workers if their salary exceeds varying multipliers of minimum wage for a forty (40) hour workweek.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2166.pdf Senate Bill No. 2170 BY Bissaillon, LaMountain, Appollonio, McKenney, Bell, Burke, Famiglietti 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/SenateText26/S2170.pdf Senate Bill No. 2173 BY Acosta, DiMario, DiPalma, Mack, Lawson, Felag, Quezada, Zurier, Valverde, McKenney ENTITLED, AN ACT RELATING TO HUMAN SERVICES -- CERTIFICATION OF CHILDCARE AND YOUTH-SERVING WORKERS AND OPERATORS (Commencing July 1, 2026, this act eliminates the provision of this section that requires new applicants for employment under this section to pay the expense for their criminal background checks.) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2173.pdf Senate Bill No. 2179 BY Paolino, Rogers, Ciccone, Tikoian, Lauria, Murray, de la Cruz, Urso, Patalano, Famiglietti ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- STANDARD AND DAYLIGHT SAVINGS TIME (Repeals daylight savings time in the state and follow the “United States Standard Eastern Time” as provided by an exemption from the advancement of time as provide by the federal Uniform Time Ac of 1966, 15 U.S.C. § 260(a).) https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2179.pdf House Bill No. 7066 BY Azzinaro, Kennedy, Lima, O'Brien ENTITLED, AN ACT RELATING TO INSURANCE -- CASUALTY INSURANCE GENERALLY -- LIMITATIONS ON POLICY CANCELLATIONS AND RENEWALS (Requires homeowner’s insurance providers to provide two months’ notice before increasing any policy renewal premium more than 20% and a violation constitutes a deceptive trade practice punishable by a fine not to exceed $1,000.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7066.pdf House Bill No. 7079 BY Craven, Biah, Cortvriend, Shanley, O'Brien ENTITLED, AN ACT RELATING TO CRIMINAL PROCEDURE -- EXPUNGEMENT OF CRIMINAL RECORDS (Permits those individuals convicted of multiple felonies and misdemeanors to have their records expunged and provide criteria for the court to consider in determining whether the person is of good moral character.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7079.pdf House Bill No. 7080 BY Finkelman ENTITLED, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- THIRD-PARTY LITIGATION FINANCING CONSUMER PROTECTION ACT (Provides for "litigation financing" regulation by DBR.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7080.pdf House Bill No. 7110 BY Alzate, Stewart, Felix, Giraldo, Cruz, Fogarty, Kazarian, Casimiro, Potter, Furtado ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- THE PERSONAL HYGIENE PRODUCT SAFETY AND TOXIC METAL REMOVAL ACT OF 2026 (Sets a clear and enforceable standard for reducing the presence of harmful metals in personal care products, prioritizing public health through testing, labeling, and the development of safer alternatives.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7110.pdf House Bill No. 7111 BY Solomon, Casey ENTITLED, AN ACT RELATING TO INSURANCE -- PRODUCER LICENSING ACT (Clarifies what a contract modification is, namely any change in producer compensation.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7111.pdf House Bill No. 7112 BY Lombardi, Hull, Sanchez, Cruz, Stewart ENTITLED, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - REGULATORY POWERS OF ADMINISTRATION (Provides that any rate increase with respect to electric distribution companies would be no greater than the increase in the Consumer Price Index or 5.5%, whichever is greater, unless there is approval of a higher rate by the general assembly) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7112.pdf House Bill No. 7113 BY McNamara ENTITLED, AN ACT RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT (Prohibits dental insurers from refusing to honor directions to pay from insured, modifying benefits to be paid. Requires providers to accept payment by virtual credit card as unfair claims practices.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7113.pdf House Bill No. 7121 BY Lombardi, Hull, Cruz, Stewart ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKPLACE PSYCHOLOGICAL SAFETY ACT (Prohibits psychological abuse in the workplace by employers or co-workers, ensuring a safe environment for employees, provides protection, civil remedies, and penalties for employers based on revenue.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7121.pdf House Bill No. 7135 BY Read, Noret, Cotter, Casey, Shanley, Casimiro, Hull, Corvese, Serpa, Paplauskas ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- OFFICE OF STATE FIRE MARSHAL (Creates a program through which fire departments and fire districts are notified of locations of registrants of electric and hybrid motor vehicles can register their vehicles with their local fire department or fire district.) https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7135.pdf House Bill No. 7146 BY Fellela, Corvese, Azzinaro, Brien, Edwards ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- DIVISION OF PROFESSIONAL REGULATION (Creates a new class of retirement status license for retirees that had possessed a professional license issued by the department of labor and trai

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Advocacy in Action: 2026 Legislative Session Begins

1/13/2026

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The 2026 legislative session kicked off January 6th, with the House Speaker and Senate President addressing their respective members. On the House side, the Speaker stated, “Let's buckle up and buckle down. It's going to be a very challenging year.” He referenced the significant changes made on the federal level, noting that a “third of our annual budget is derived from federal funding.”  His priorities for the year include: health care affordability and accessibility; housing expansion; program stability in the face of federal cuts; and energy costs. 

On the Senate side of the aisle, President Val Lawson also talked about the challenges facing the state as a result of federal funding changes. “Changes at the federal level will impact Medicaid, SNAP and the cost of care obtained through HealthSource RI. Even as needs in the community are increasing, the state budget, through which we address many of these needs, is facing a significant deficit.'' Lawson talked about her commitment to universal pre-k, a workforce innovation center at CCRI, and stabilizing the hospital system.  The Senate will release a legislative package in the coming weeks to address health care, education, and small business initiatives. 

House Names Two New Chairs to Key Committees 

On Tuesday, Speaker Shekarchi appointed Representative Carol McEntee of South Kingstown to the position of Chairwomen of the House Judiciary Committee.  McEntee was elected to the House in 2015. She previously served as Chairwoman of the Small Business Committee and Vice Chair of the Judiciary Committee.  McEntee works as an attorney, licensed in both Rhode Island and Massachusetts, at her private practice in Wakefield and Warwick. She is also a former special assistant attorney general in Rhode Island and a former assistant city solicitor and prosecutor for the City of Warwick.     

Representative MaryAnn Shallcross Smith was appointed Chairwoman of the Small Business Committee.  Shallcross Smith, a Democrat from Lincoln, was elected to the House in November, 2020.  She previously served in the House from 2009-2010. The owner of Dr. Day Care Inc., Rep. Shallcross Smith previously served on the Lincoln School Committee.  She is a proud member of the Northern RI Chamber of Commerce and a commissioner on the RI Legislative Commission of Child Care.  She received the Barbara C. Burlingame award in 2025. 

The following new bills have been filed: 
Senate Bill No. 2019  BY  Paolino, Morgan, Rogers, de la Cruz, Raptakis, Patalano, Dimitri, Pearson, Urso, Thompson  ENTITLED, AN ACT RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES -- LIABILITY AND COMPUTATION (Increase the net taxable estate exemption to $3,600,000 on January 1, 2027. This act would also increase the exemption by $1,000,000 on January 1, 2028 and every year thereafter until this section and the tax would sunset and expire on January 1, 2033)  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2019.pdf     Senate Bill No. 2022  BY  de la Cruz, Rogers, Ciccone, Tikoian, Burke, Morgan, Paolino  ENTITLED, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Repeals the corporation minimum tax.)  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2022.pdf 
 
 Senate Bill No. 2026  BY  Morgan, Tikoian, de la Cruz, Lawson, Ciccone, Rogers, Paolino, Raptakis, McKenney, Dimitri  ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Allows a modification to federal adjusted gross income for all social security income for tax years beginning on or after January 1, 2027.)  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2026.pdf  
 
Senate Bill No. 2028  BY  Kallman, DiMario, Murray, Euer, Zurier, Pearson, Valverde, Gallo, Bissaillon  ENTITLED, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Imposes a sales tax on digital advertising services.)  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2028.pdf  
 
House Bill No. 7004  BY  Boylan, Handy, Knight, McGaw, Bennett, Potter, Fogarty, Spears, Speakman  ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND CLIMATE SUPERFUND ACT OF 2026 (Creates the Rhode Island Climate Superfund Act of 2026.)  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7004.pdf  
 
House Bill No. 7021  BY  Azzinaro, Kennedy, Phillips, Corvese  ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- RETAIL ESTABLISHMENTS-VEHICLE SAFETY BARRIERS (Requires commercial property owners to install vehicle barriers at their retail establishments when new construction or renovations are being done and permits insurers to consider the installation to provide a discount on the owner's insurance policy.)  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7021.pdf  
 
House Bill No. 7022  BY  Fellela, Shallcross Smith, Messier, Costantino  ENTITLED, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- UNFAIR SALES PRACTICES (Requires businesses to notify customers whenever a surcharge or fee for payment made by credit card is imposed.)  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7022.pdf  
 
House Bill No. 7033  BY  Finkelman  ENTITLED, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- JUDGMENTS, ORDERS, AND DECREES (Amends calculations of interest in civil actions a rate determined by average accepted auction price for last auction of 52 week U.S. treasury bills.)  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7033.pdf  
 
​House Bill No. 7057  BY  Ackerman, Serpa, Kennedy, Donovan, Shallcross Smith, Newberry, Bennett, McNamara, Speakman, Fellela  ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Gradually phases in modifications to federal adjusted gross income over a five (5) year period for social security income, from twenty percent (20%) up to one hundred percent (100%), beginning on or after January 1, 2027.)  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7057.pdf  

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Under the Dome: Advocacy in Action

1/6/2026

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The 2024 Session Begins


Welcome to the 2026 Subscription of Advocacy in Action. The legislature will begin its session Tuesday, January 6th. Bills are currently being filed and we expect hearings to slowly begin in the upcoming weeks.


Key dates for 2026 include the following:

Governor McKee’s State of the State Address – January 13, 2026

Governor McKee’s Budget Release – January 15, 2026

Last day for Senate public bill introduction – To Be Announced (usually prior to Winter recess)

Last day for House public bill introduction – To Be Announced (usually prior to Winter recess)

Winter Recess – February 16-20, 2026

Spring Recess – April 20-24, 2026



New Laws Now in Effect


Several new laws went into effect as of January 1, 2026.


Minimum Wage


Starting January 1, 2026, the minimum wage increased to $16.00 per hour. For businesses permitted to pay a tipped wage (currently $3.89 per hour), employers are required to pay the tip wage plus any amount needed to bring the employee’s wage to $16.00 per hour.


Rhode Island employees are entitled to one and a half (1 ½) times the minimum wage ($24.00) for overtime hours - considered over forty (40) hours in any given week. Exemptions to the overtime rule can be found at: https://webserver.rilegislature.gov//Statutes/TITLE28/28-12/28-12-4.3.htm


Hourly employees are also entitled to one and a half (1 ½) times their hourly wage for hours worked during Sundays and Holidays even if it is a part of the employee’s normal forty (40) hour work week. A minimum wage employee working on a Sunday is therefore entitled to an hourly wage of $24.00. A few exemptions to this rule exist and can be found at: https://webserver.rilegislature.gov/Statutes/TITLE25/25-3/25-3-3.htm


The minimum wage is set to increase again January 1, 2027 to $17.00 per hour.



Payment of Wages Notices


Beginning January 1, 2026, employers are required to provide all new hires with a

written notice (in English) containing the following information:


(1) The rate or rates of pay and basis thereof, including whether the employee is to be paid by the hour, shift, day, week, salary, piece, commission, or other method, and the specific application of any additional rates;

(2) Allowances, if any, claimed, pursuant to permitted meals and lodging;

(3) Employer's policy on sick, vacation, personal leave, holidays and hours;

(4) The employee's employment status and whether the employee is exempt from minimum wage and/or overtime;

(5) A list of deductions that may be made from the employee's pay;

(6) The 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;


Any employer who fails to comply can be assessed a $400 fine for the first or second offense. Subsequent offenses are subject to fines of $400 and possible imprisonment.



Temporary Caregiver Insurance


Beginning January 1, 2026, Rhode Island’s Temporary Caregiver Insurance (TCI)

benefits will increase from seven (7) weeks to eight (8) weeks. It also raises dependent

allowances under the state’s Temporary Disability Insurance (TDI) program from

$10 to $20 or 7% of the benefit rate per dependent, whichever is greater. The law

maintains existing provisions ensuring job protection and health benefits during

caregiver leave. Employees must still provide written notice before taking leave

unless circumstances are unforeseeable.


Another new benefit was also added to TCI January 1, 2026. Employees may use TCI to cover time needed to participate as a bone marrow transplant donor or as a living organ donor. In the event the individual is participating as a bone marrow transplant donor or a living organ donor, benefits cover time needed for any procedures, medical tests, and surgeries related to the donation, including no more than five (5) business days of recovery from a bone marrow transplant or no more than thirty (30) business days’ recovery from a living organ donor transplant.


Workplace Accommodations for Menopause


On June 24, 2025, a bill was signed into law expanding the fair employment practices law to include menopause and menopause related conditions. Rhode Island employers must now participate in good-faith efforts to provide reasonable accommodations for employees whose

menopause symptoms affect their work, even if the employee is not considered

disabled. The law references “Vasomotor symptoms” (VMS) which include symptoms such as hot flashes and night sweats, characterized by sudden intense heat, flushing, sweating, and subsequent chills. Employers must also post and distribute notices informing workers of these

rights to accommodations and freedom from menopause-related discrimination.

Written notices should have been given to new hires and current employees October 22, 2025,

as well as to any employee who now reports menopause-related conditions within 10 days of such notice.


RI Savers Retirement Program


In June, 2024, a bill was signed into law requiring private employers to participate in the Rhode Island Secure Choice Retirement Savings Program (RISavers) unless they already offer a qualifying retirement program to employees. The first phase of the program became effective October 21, 2025. As of October 15, 2026, businesses that employ 100 or more are required to register for the RISavers program if they do not already offer a tax-qualified retirement plan

to employees. Effective October 15, 2027 this requirement expands to employers with

50 or more employees. October 15, 2028, the requirement applies to employers with 5 or more employees. Further information can be found at: https://treasury.ri.gov/press-releases/important-information-regarding-risavers-program



Hotel Tax Increase


Effective January 1, 2026, Rhode Island’s local hotel tax rate increased from 1% to 2%.

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Final 2025 Legislative Wrap-up, Or Is It?

7/14/2025

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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
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Under the Dome: House Finance Committee Passes Budget

6/16/2025

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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
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Under the Dome: Advocacy in Action

6/9/2025

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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
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Under the Dome -Advocacy in Action

6/2/2025

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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
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Under the Dome: Advocacy in Action

5/27/2025

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

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

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

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

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

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Under the Dome; Advocacy in Action

5/19/2025

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


Municipal Waiver of Interest


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

5/13/2025

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​Revenue Estimating Conference Adopts Final Numbers

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

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

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

Bullying Bill Passes in SubA Form

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


This Week At the State House

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

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

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

Proposed Revisions to the Identity Theft Act of 2015

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

Tuesday, May 13th

House Environment Committee Focuses on Packaging and Paper Recycling

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

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

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

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

Senate Finance Hears Tax Penalty Waivers

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

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


Wednesday, May 14th

House Budget Update

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

Weapons Hearing Day

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


Thursday, May 15th

Hearing on TDI Taxes and Benefits in the Senate Finance Committee

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


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


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