​This Week At the State House
Tuesday, April 1
Price Transparency
On Tuesday, the Senate Commerce Committee will conduct a hearing at 4:30pm in Room 212 on S17, which provides that advertising goods that don't include a price referencing all mandatory fees and charges shall be a deceptive trade practice. While governmental taxes and fees as well as shipping charges are exempt, all other related charges must be disclosed or the provider/retailer is subject to a civil penalty up to $10,000 per violation, or a private or class action suit. Testimony on this bill can be emailed to [email protected].


Commerce Corporation Supermajority Votes Also before the Senate Commerce Committee on Tuesday at 4:30pm in Room 212 is S316, which would require a two-thirds (2/3) majority vote by the board of directors to approve any action taken by the commerce corporation. Project awards and approvals would need a supermajority vote, rather than a simple majority, to be valid. Testimony on this bill can be emailed to [email protected].


Energy & Utilities
On Tuesday, the House Corporations Committee will conduct hearings at 4:30pm in Room 101 regarding various bills impacting energy and utilities operations in the state: H5573 would require applications for energy facilities to take into consideration the 2021 Act on Climate and how the facility may advance or delay the greenhouse gas emissions reductions. H5575 would allow for the procurement of nuclear power. H5579 would require the PUC to produce an annual report regarding the electric grid’s ability to cover needs to power cars, buildings, and heat homes within the state. H5820 would expand the schedule to achieve 100% electricity demand from renewable energy by ten years to 2043. H5578 would prohibit public utilities from raising the cost for access to the internet for senior citizens. Testimony on these bills can be sent to: [email protected].




Wednesday, April 2
Captive Audience Meetings Following on a National Labor Relations Board decision in November that deemed unlawful the practice of requiring employees attend meetings under threats of discipline or discharge where employers express views on unionization, on Wednesday, the Senate Labor and Gaming Committee is scheduled at 4pm in Room 212 to pass S126, legislation to prohibit the convening of so called “captive audience” meetings. Also on Wednesday, companion legislation H5506 is being heard in the House Labor Committee at 4pm in Room 135. Approximately ten states have enacted laws prohibiting captive audience meetings, which have been subject to litigation, including the Connecticut law. Testimony on this bill can be sent to: [email protected].


Hospitality Industry Workforce Training
On Wednesday, the Senate Labor and Gaming Committee is scheduled at 4pm in Room 212 and the House Labor Committee is scheduled at 4pm in Room 135 to conduct hearings on legislation, S584 and H5942 supported by the Rhode Island Hospitality Association to establish a restricted receipt account at the department of labor and training for issuance of hospitality industry workforce training grants, funded by a $50 annual surcharge on food service establishment licenses. With federal resources exhausted and the state budget projecting structural deficits, critical workforce training programs like Real Jobs RI are in need of supplemental resources. With approximately 6,000 food service licenses in the state, the proposed $50 fee could generate $300,000 a year to support hospitality workforce training programs. It follows from the approach the residential construction industry advanced by imposing a supplemental fee on building permits for one- and two-family dwellings that began collection in January and supports residential contractor workforce training programs. Testimony on these bills can be sent to: [email protected] and [email protected].


Employment Protocols
Also on Wednesday, the Senate Labor and Gaming Committee will conduct hearings at 4pm in Room 212 regarding various bills impacting employer: S70 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. S587 provides unemployment benefits for workers who are on strike or are locked out of their workplaces by their employer due to a labor dispute. S829 mandates paid leave by allowing qualified employees to take medical leave to undergo donation procedures, medical tests, and recovery related to being a living organ donor, or bone marrow transplant donor. Testimony on these bills can be sent to: [email protected]


Work on Holidays and Sundays On Wednesday, the House Labor Committee will conduct a hearing on H5944, which would exempt individuals covered by a collective bargaining agreement or employment contract and individuals employed by municipalities or the state from the definition of employees that are entitled to time and a half pay on Sundays and holidays, as well as exempt employers of less than 15 employees from having to pay the same. Testimony on this bill can be sent to: [email protected].


Thursday, April 3
Possession and Disposition of Real Estate
On Thursday, the Senate Housing & Municipal Government will meet at 4:30pm in Room 212 regarding bills impacting the possession and disposition of real estate: S489 would preclude any legal entity from possessing, controlling or otherwise claiming legal title to real property exceeding an aggregate value of twenty-five million dollars ($25,000,000) in single-family dwellings or multi-family dwellings. S202 would grant a right of first offer to qualified nonprofits for the purchase of certain multi-family residential properties at market prices. Testimony on these bills can be sent to: [email protected].


Rebuild Rhode Island Sales Tax Exemption
On Thursday, the House Finance Committee will conduct a hearing at 4:30pm in Room 35 regarding H5741 which would expand 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. Testimony on this bill can be sent to: [email protected].


New Bills Filed: Senate Bill No. 921 BY DiPalma
ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE CORPORATION -- QUALIFIED DATA CENTERS LOCATION INCENTIVE (Creates qualified data centers and tax

​This Week At the State House
 
Wednesday, March 26, 2025
 
Unemployment Benefits
 
The Senate Committee on Labor & Gaming (4:30 p.m. in Room 212) will be considering the removal of 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, An Act Relating to Labor and Labor Relations – Employment Security removes the sunset, making the benefit calculation permit.  https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0622.pdf
 
Wastewater Discharge Fee
 
S.642, An Act Relating to Waters and Navigation – Uniform Septage Disposal Fee, will be heard in the Senate Committee on Environment & Agriculture at 4:00 p.m. in the Senate Lounge.  S.642 establishes a uniform wastewater disposal fee in the amount of fifteen cents per every 10,000 gallons of wastewater effluent which shall be imposed on the disposal of wastewater effluent at all wastewater treatment facilities in the state.  Waste water may be a combination of the liquid and water-carried wastes from residences, commercial buildings, industrial plants, and institutions, together with any groundwater, surface water, and storm water that may be present.  https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0642.pdf
  
Testimony both bills can be emailed to: [email protected]
  
Last Week At the State House
 
Employees’ Right to Buy a Business, Leave for Organ Donation
 
H.5940, An Act Relating to Labor and Labor Relations – The Rhode Island Opportunity for Employee Ownership Act, received a great deal of attention at last week’s hearing.  This bill
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.  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. In the event the business is sold to the employee group, the seller is exempt from paying capital gains on the first $1 million in gains. 
 
Many members of the Labor Committee expressed concerns about the proposed mandate and how that mandate might harm a business owner’s opportunity to sell a business or to take on a majority partner. The Chamber, together with other business organizations also pointed out the ramifications of releasing sensitive financial information to employees who may not have the ability to purchase the business.  We thank Chairman Corvese, Rep. Carol McEntee, Rep. Jon Brien, Rep. Richard Fascia, Rep. Stephen Casey and the members of the committee who asked questions seeking to flush out potential challenges that would face the business community if H.5940 was to become law.
 
H.6065, An Act Relating to Labor and Labor Relations – Rhode Island Bone Marrow and Organ Donor Leave Act was heard last week as well.  Representative Giraldo clarified that his intent for the bill is to allow employees who qualify for FMLA to use that FMLA time and TDI to cover time needed to undergo tests, surgery and recovery time in order to donate bone marrow or organs.  The maximum duration of leave is thirty days for organ donation and five days for bone marrow donation.  The employer must keep a similar job open for the employee’s return and continue to pay for any health insurance provided to the employee.  If the employee has a co-share premium, that amount must be paid to the employer prior to taking leave.  The intent is not to require businesses to increase the FMLA time, but to add these situations as eligible for FMLA and TDI benefits.
 
 
 
 
New bills filed:
 
Senate Bill No. 857  Thompson, Raptakis, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- HOLIDAY BUSINESS (Provides all employees of retail establishments with 15 or more employees engaged in work during Sundays or holidays shall receive from their employer no less than time and a half and shall be guaranteed at least a minimum of four (4) hours employment.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0857.pdf
 
Senate Bill No. 858  Thompson, Raptakis, AN ACT RELATING TO HOLIDAYS AND DAYS OF SPECIAL OBSERVANCE -- WORK ON HOLIDAYS AND SUNDAYS (Defines employees as individuals employed by a municipality or state covered by a collective bargaining agreement or employment contract, and would redefine an "employer" to those who employ fifteen (15) or more employees.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0858.pdf
 
 
House Bill No. 6112  Sanchez, Morales, Cruz, Speakman, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- EMINENT DOMAIN (Requires all entities delegated eminent domain powers under this section to adopt a plan and approval prior to exercising such power for a public purpose.)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6112.pdf
 
House Bill No. 6123  Voas, Giraldo, Alzate, AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES (Defines Class 5 property to include the commercial portion of mixed use properties and fix the tax rate for Class 3 property at thirty-eight dollars and 33 cents ($38.33) per one thousand dollars ($1,000).)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6123.pdf

This Week At the State House
 
 Tuesday, March 18th
 
 Liability for Artificial Intelligence Product Injuries
 
On Tuesday (At the Rise in Room 313), the Senate Judiciary Committee is asking for comments on S.358, An Act Relating to Courts and Civil Procedure – Causes of Action.  This legislation affects developers engaged in the initial training or fine tuning of artificial intelligence models that meet specific power and cost triggers. S.358 declares covered developers to be strictly liable for injuries factually or proximately caused, “regardless of the degree of care they exercised.” Defamation suits are exempt from strict liability.  A rebuttable presumption is included as are two affirmative defenses.  If your company is involved in AI development, please review this bill and contact the Chamber if you have concerns.  S.358 can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0358.pdf
Written testimony should be submitted to [email protected]
 
 
Wednesday, March 19th  
 
Employees’ Right to Buy a Business, Leave for Organ Donation
 
The House Labor Committee is meeting at 4:00 p.m. in Room 101.
 
H.5940 is on the agenda which is a companion bill to S.752 heard last week in the Senate Labor Committee.  H.5940, An Act Relating to Labor and Labor Relations – The Rhode Island Opportunity for Employee Ownership Act, 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.  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. In the event the business is sold to the employee group, the seller is exempt from paying capital gains on the first $1 million in gains.  https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5940.pdf
 
H.6065, An Act Relating to Labor and Labor Relations – Rhode Island Bone Marrow And Organ Donor Leave Act https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6065.pdf places another requirement on businesses with fifty or more employees, as well as to state and certain municipal government entities.  Employees who work thirty or more hours a week would qualify for medical leave covering medical tests, surgeries and recovery time related to the donation of an organ or bone marrow.  The maximum duration of leave is thirty days for organ donation and five days for bone marrow donation.  The employer must keep a similar job open for the employee’s return and continue to pay for any health insurance provided to the employee.  If the employee has a co-share premium, that amount must be paid to the employer prior to taking leave.  H.6065 specifically states, “The taking of bone marrow or organ donor leave pursuant to this chapter shall not result in the loss of any benefit accrued before the date on which the leave commenced.”
 
Written testimony on either bill should be emailed to [email protected]
  
Thursday, March 20th
 
Energy Cost Redistribution – House Corporations Committee
 
H.5245, An Act Relating to Public Utilities and Carries, is the topic of discussion in the House Corporations Committee at the Rise (approximately 4:30pm) in the House Lounge.  This bill 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 increased rates assessed on all other customers.  The most current US Census estimates 10.8% of population in Rhode Island meets the definition of living in poverty. The census does not say how many are living at 150% of the federal poverty level.   The Rhode Island total population at the time of the census was 1,095,962.  Testimony may be submitted at [email protected]
 
 All Electric Buildings – House Committee on Municipal Government and Housing
 
H.5450, An Act Relating to Public Property and Works – All Electric Building Act bans municipalities from granting a building permit for any new commercial, residential or mixed-use building that is not an all-electric building effective December 31, 2026 unless it is deemed physically or technically infeasible.  Financial considerations are not sufficient to meet the “infeasible” criteria. Permits can not be issued for any building or construction to convert an all-electric building into a mixed-fuel building if the application is submitted after December 31, 2026.  Hospitals, medical facilities, laboratories for biological research and restaurants are exempt.  https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5450.pdf
Written testimony may be emailed to: [email protected]
 
 New bills filed:
 
House Bill No. 6059  Noret, Corvese, Costantino, O'Brien, Dawson, Fellela, Batista, Fascia, Casey, AN ACT RELATING TO HEALTH AND SAFETY -- CONSUMER PFAS BAN ACT OF 2024 (Exempts certain products that have PFAS if deemed safe by FDA.)  https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6059.pdf
 
House Bill No. 6066  Giraldo, Potter, Voas, Stewart, Alzate, Morales, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY INSURANCE -- GENERAL PROVISIONS (Includes siblings, grandchildren, and care recipient in the coverage for temporary caregiver benefits and increases the taxable wage base upon which employees make contributions to the TDI and TCI funds.)  https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6066.pdf
 
House Bill No. 6097  Finkelman, Baginski, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE CORPORATION -- QUALIFIED DATA CENTERS LOCATION INCENTIVE (Creates qualified data centers and tax exemptions.)  https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6097.pdf
 
Senate Bill No. 779  Mack, Acosta, Kallman, AN ACT RELATING TO TAXATION -- WEALTH TAX (Imposes a wealth tax on Rhode Island individuals and entities at a rate of one percent (1%) of worldwide wealth.)  https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0779.pdf
 
Senate Bill No. 812  LaMountain, Vargas, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- EMINENT DOMAIN (Allows the department of environmental management to acquire established foot paths by eminent domain in order to provide public access to streams, rivers, lakes and ponds.)  https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0812.pdf
 
Senate Bill No. 829  Murray, Thompson, Sosnowski, Valverde, Lawson, Ciccone, Bissaillon, Urso, AN ACT RELATING TO LABOR AND LABOR RELATIONS – RHODE ISLAND BONE MARROW AND ORGAN DONOR LEAVE ACT (Mandates paid leave by allowing qualified employees to take medical leave to undergo donation procedures, medical tests, and recovery related to being a living organ donor, or bone marrow transplant donor.)  https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0829.pdf
 
 
 
 
 
 

This Week At the State House   Call To Action – The Chamber Needs Your Help
Senate Judiciary - Northern RI Chamber’s Arbitration Facilitation Bill
On Thursday, March 13th, at the Rise in Room 313, the Northern RI Chamber will be advocating for the passage of a bill it drafted with the assistance of the US Chamber of Commerce.
Last year arbitration legislation was passed at the end of session without the Governor’s signature. Many in the business community tried to get a handle on what the bill would do, but the complexity and the limited experience in other states created a challenge to provide meaningful testimony. In a nutshell, these bills, now law, make it easier to avoid arbitration and therefore force a court system solution. Companies prefer arbitration over litigation because it is usually faster and less expensive.
Last year’s law requires businesses, under most circumstances, to pay certain fees and costs before the arbitration can proceed. These fees must be paid “within 30 days” of the “due date” otherwise the business is considered to be in breach of the arbitration agreement and the employee or consumer may choose to (1) withdraw the claim from arbitration and proceed to court (the court must impose sanctions on the business) or (2) compel arbitration and subject the business to attorneys’ fees and costs related to the arbitration. California passed this same law and is now fighting because a company was three days late, subjecting it to large expenses and court proceeding. A business might send the payment on time, but it may arrive late, or sit on the arbitrator’s desk by mistake, leaving the business with costly ramifications. If the arbitration ends up withdrawn, the business is also subject to penalties such as: attorneys’ fees and costs, an evidence sanction prohibiting the business from conducting discovery in the civil action, an order striking out pleadings or parts of the pleadings, an order rendering a judgment by default against the business and contempt sanction by an order. These penalties make it harder for the business to defend itself in court.
The new law also states that if one provision in an arbitration agreement between a business and an employee or customer is deemed illegal, the entire agreement is deemed illegal.
The Chamber’s bill makes four changes to the existing law:
· Exempts arbitration agreements governed by the Federal Arbitration Act (FAA) cited as 9 U.S.C. sections 1-16. The California cases are currently litigating this issue as well. The Chamber expects the losing party in the California Supreme Court Cases to appeal to the US Supreme Court. It will take time for the cases to wind their way through this process so we recommend inserting language to exempt agreements that fall under the FAA until such time as the courts finally decide the issue.
· Increases the number of days a party has to apply to stay the arbitration from 20 days to 180 days after receipt of notice of intention to arbitrate.
· States that in the event a provision of an arbitration agreement is ruled illegal, only that provision is null and void. The current law declares the entire agreement null and void.
· Changes the deadline for payment to the arbiter. This bill deems in compliance a payment “sent” within 30 days of the due date. The bill further allows the business to cure a default of payment within 15 days after the it receives a notice of default.
The Chamber is asking for your help. Please consider sending testimony in favor of S.353 to the Senate Judiciary Committee at: [email protected]






Tuesday, March 11th


Senate Commerce Committee - Storefront Barriers and Employee Transportation Benefits


Storefront barriers and transportation fringe benefits are on the agenda of the Senate Commerce Committee at the Rise (approximately 4:30p.m. in Room 212). S.14, An Act Relating to Health and Safety – Vehicle Barriers requires new construction retail establishments to include vehicle barriers in construction plans to protect pedestrians and customers in the establishment. The legislation encourages insurance companies to offer discounts to businesses erecting the barriers. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0014.pdf Written testimony can be emailed to [email protected]


S.382, An Act Relating to Labor and Labor Relations – The Commuter Transportation Benefits Act, requires employers with 500 or more employees to establish a pre-tax commuter transportation fringe benefit program effective January 1, 2026. The funds could be used for both highway vehicle and transit benefits. If a covered employer fails to comply, it can be assessed a civil penalty between $100 and $250 for the first violation. An employer has 90 days to offer the pre-tax fringe benefit, before the civil penalty is imposed. After 90 days, each additional 30-day period in which an employer fails to comply is considered a subsequent violation subject to a civil penalty of $250. An employer cannot be penalized more than once in a 30-day period. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0382.pdf Written testimony can be emailed to [email protected]




Senate Finance Committee – Workers’ Compensation Fund


S.442, An Act Relating to Public Finance – State Funds is a bill the Chamber supports. Under current law, 10% of the monies deposited into the Workers’ Compensation Administration Fund is taken by the state to fund government activities. All restricted receipt accounts are treated in the same way unless specifically exempted under law. S.422 seeks to exempt the Fund from the “cost recovery” program. The Workers’ Compensation Administration Fund is 100% funded by the business community. The assessment is a payment made by insurers and self-insured employers at a rate set by the Department of Labor and Training. Insurers and employers must also pay additional monies into the fund under certain circumstances such as when an injury occurs resulting in death. The Fund itself is used to pay for the workers’ compensation system: the rehabilitation center, fraud prevention, workers’ compensation court expenses, etc. The budget for these activities is about $24 million a year. The Committee is meeting At the Rise in Room 211. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0442.pdf Written testimony can be emailed to [email protected]




Wednesday, March 12th


Senate Environment & Agriculture – Superfund Retroactive Penalties


S.326, An Act Relating to State Affairs and Government – Rhode Island Climate Superfund Act of 2025, is receiving some attention as it is pushed by the Public Citizen’s Climate Accountability Project, an environmental organization run by former state representative and candidate for Lieutenant Governor, Aaron Regunberg. This bill (https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0326.pdf) requires the state and municipalities to add up all of the costs expended in the last sixteen years related to items the bill deems a result of climate change (“work on: coastal areas, stormwater drainage systems; infrastructure, such as roads, bridges, tunnels; mass transit systems including buses, trains and boats; healthcare access and availability, including hospitals; sewage treatment plants; public and private housing and shelters; businesses; Internet broadband systems; energy services, including clean and sustainable options; forests; farms and fisheries; and climate change effect predictive tools). Once the total is calculated, an invoice would be sent to responsible parties defined as large businesses that extract and refine fossil fuels worldwide. A ten percent penalty is added to late payments. This legislation, passed in Vermont, is being challenged by the US Chamber of Commerce in the federal district court for Vermont. The US Chamber Complaint states, “Vermont’s legislature has enacted an unprecedented law, becoming the first state in American history to attempt to impose strict liability on companies based in other States for their purported shares of global greenhouse gas emissions. This law – known as the Climate “Superfund” Act, S.259 (“Act” or “Vermont’s Act”) – does not limit its regulation to greenhouse gas emissions released in Vermont. Rather, it seeks to punish a narrow set of energy producers for global greenhouse gases emitted from all sources in the atmosphere over the course of three prior decades that allegedly caused damage to the State.” Chamber of Commerce of the United States of America and American Petroleum Institute v. Julie Moore. The US Chamber is arguing that the Vermont law is preempted by the U.S. Constitution and federal law, and in violation of the Fifth, Eighth, and Fourteenth Amendments https://www.uschamber.com/assets/documents/Complaint-Chamber-v.-Moore-D.-Vt.pdf Written testimony can be emailed to [email protected]




House Environment – Decarbonization of Buildings


H.5493, An Act Relating to Health and Safety – Building Decarbonization Act of 2025 bans municipalities from issuing a permit for the construction or alteration of any commercial, residential, or mixed-use buildings if the initial application is submitted after December 31, 2025 and if the building is not made “electric ready.” Electric ready means the building is designed with sufficient capacity for a future retrofit of a mixed-use building to an all-electric building, including space, drainage, electrical conductors, etc. The bill also includes a benchmarking program for buildings over 25,000 sq.ft. The EC4 Committee is authorized under the bill to require owners to submit energy use information that can be used for planning and implementation purposes in meeting the greenhouse gas emission reduction targets related to
Rhode Island’s Act on Climate law. The hearing will take place At the Rise in Room 101. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5493.pdf Written testimony can be emailed to [email protected]




Senate Labor & Gaming – Employee Definition, Employee Speech at Work, Extreme Temperatures, Sale of Businesses


The Senate Labor & Gaming hearing is scheduled to take place in Room 212 At the Rise.


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, but it is unclear if the wording goes beyond the interpretation of the definition today. S.124 defines “employees” as "any person who performs services for another, under the other's control or right of control, and in return for payment or other compensation including, but not limited to, students including teaching assistants, research assistants, fellows, residential assistants and proctors who perform services for an employer, notwithstanding whether supervised teaching, research or other services, are a component of their academic development.” The Chamber is looking for input from the business community related to this proposed change. The bill can be viewed in its entirety at: http://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0124.pdf


S.126, An Act Related to Labor and Labor Relations – Employe Free Speech Rights, limits 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.” “Political matters” is very broadly defined as, “matters relating to elections for political office, political parties, proposals to change legislation, proposals to change regulation and the decision to join or support any political party or political, civic, community, fraternal or labor organization.” If enacted, S.126 would punitively limit an employer’s ability to educate employees about legislation, regulations or organizing efforts that could significantly affect the business’ operations or the employee’s work responsibilities. 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. Businesses cannot grow and thrive without effective and informative communication lines between employers and employees. S.126 undermines that relationship and creates an unwelcoming environment in which to open and operate a business. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0126.pdf


To submit testimony on any bills scheduled for hearing in Senate Labor email it to [email protected]


New bills filed:
Senate Bill No. 613 (Commerce) Urso, Britto, Ciccone, McKenney, AN ACT RELATING TO TAXATION -- RHODE ISLAND NEW QUALIFIED JOBS INCENTIVE ACT 2015 (Provides that businesses awarded tax credits, under the qualified jobs incentive act, within a specified time period are able to submit certain required documentation by December 31, 2025.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0613.pdf Senate Bill No. 622 (Dept. of Labor and Training) Burke, Tikoian, Appollonio, Raptakis, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY --GENERAL PROVISIONS (Eliminates the "until June 30, 2025" sunset on the increase in the total amount of earnings a partial-unemployment insurance claimant can receive before being entirely disqualified for unemployment insurance benefits.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0622.pdf House Bill No. 5692 Place, Santucci, Quattrocchi, Hopkins, Nardone, AN ACT RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES (Allows the operation of a home-based business, which meets criteria for home office IRS income tax deduction, without securing approval from the municipality with no storage of chemicals/park heavy equipment/not more than 10% of premises used for parking.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5692.pdf House Bill No. 5727 Paplauskas, Newberry, Nardone, Place, Brien, Lima, Fascia, Quattrocchi, AN ACT RELATING TO MILITARY AFFAIRS AND DEFENSE -- EMERGENCY MANAGEMENT (Requires the director of the Rhode Island emergency management agency and the Rhode Island commerce commission to develop and implement a plan to assist businesses in obtaining flood insurance through the National Flood Insurance program.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5727.pdf House Bill No. 5753 Costantino, Lima, Solomon, Chippendale, Baginski, Brien, Nardone, Hopkins, Casey, Potter, 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/HouseText25/H5753.pdf House Bill No. 5757 McEntee, Solomon, Caldwell, Phillips, Finkelman, Casey, Cortvriend, Dawson, O'Brien, Carson, AN ACT RELATING TO TAXATION -- STATE TAX OFFICIALS (Caps delinquent tax interest rate at 12%. Prohibits audits beyond 3 years from date of tax filing, 7 years for fraudulent filings, and in no event beyond 10 years from date of filing or required filing date, whichever is later.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5757.pdf House Bill No. 5831 Hopkins, Place, Roberts, Brien, Bennett, Corvese, Chippendale, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- SENIOR SAVINGS PROTECTION ACT (Requires anyone engaged in the sale of goods or services, and who offers a discount to its customers’ for utilizing automatic payment systems, via ACH or EFT or similar payment systems, provide the same discount to any person who is sixty-five (65)) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5831.pdf House Bill No. 5910 Dawson, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- DECISIONS, SPECIAL FINDINGS AND ASSESSMENT
OF DAMAGES (Adds the doctrine of assumption of risk to the current comparative negligence statute.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5910.pdf House Bill No. 5940 Stewart, Lombardi, Voas, Tanzi, Morales, Cruz, Potter, Alzate, Cotter, Casimiro, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- THE RHODE ISLAND OPPORTUNITY FOR EMPLOYEE OWNERSHIP ACT (Creates RI opportunity for employee ownership, worker gets notice within seven days of sale of business.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5940.pdf House Bill No. 5971 (Executive Office of Commerce) Solomon, Hull, Casey, Casimiro, Shanley, AN ACT RELATING TO TAXATION -- RHODE ISLAND NEW QUALIFIED JOBS INCENTIVE ACT 2015 (Provides that businesses awarded tax credits, under the qualified jobs incentive act, within a specified time period are able to submit certain required documentation by December 31, 2025.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5971.pdf House Bill No. 6009 Casey, Finkelman, Solomon, Dawson, Chippendale, Shallcross Smith, Corvese, Brien, Baginski, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Authorizes a retroactive tax credit for tax yr 2026/thereafter/allowing investment tax credits to be passed through to the personal income tax returns of eligible Sub-S corporation shareholders/limited liability company members who meet certain conditions) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6009.pdf

Legislative Break Week
The General Assembly observed the annual February legislative break last week.
Next Week At the State House

Monday, February 24th
AI 101
The Senate Artificial Intelligence & Emerging Technology Committee will have a presentation at 2:30pm in Room 313 by URI Professor Zhu (Drew) Zhang on Artificial Intelligence. To watch the livestream, visit https://capitoltvri.cablecast.tv/. Prior to legislative break the committee had a Cybersecurity 101 presentation by RIC Cybersecurity Institute Director Douglas Alexander, which can be viewed here: https://capitoltvri.cablecast.tv/show/10806?site=1.

Tuesday, February 25th

Changes in Health Club Services
The House of Representatives convenes at 4pm and will vote on H 5215, which would require health clubs to stop automatic deductions from consumer accounts within 30 days of receiving written notice, as well as require 60 days notice of proposed rate increase or substantial change in services to the consumer.


AEDs at Golf Courses
The House Health & Human Services Committee is scheduled to consider at the Rise (approximately 4:30pm) in Room 135 H 5083 Sub A, which would include public or private golf courses in the list of public places required to have automated external defibrillators and at least one person trained tin AED use.


Healthcare Professional Complaints
The House Health & Human Services Committee will also conduct a hearing on H 5303, which would require the establishment of a searchable database of healthcare professions’ complaint histories, accessible to healthcare employers. License holders can review and dispute entries inaccurately attributed to the license holder. If you wish to submit written comment, please email it to [email protected].

Small Employer Health Insurance
The House Corporations Committee will conduct a hearing at the Rise in Room 101 on H 5418, which would amend the definition of small employers for the purposes of insurance availability from less than 50 employees to less than 100 employees. If you wish to submit written comment, please email it to: [email protected].


Single Payer Healthcare
The House Corporations Committee will also conduct a hearing on H 5465, which would establish a universal single payer health care insurance program paid for by consolidating government and private payments to multiple insurance carriers into a Medicare-for-all style single payer program. If you wish to submit written comment, please email it to: [email protected].

Taxes & Fees
The Senate Finance Committee will conduct a hearing at the Rise in Room 211 on sections of Budget Article 5 relative to Taxes and Fees. The information provided below about these articles comes from the House and Senate Fiscal Staff analyses that provide helpful summaries of the sections. If you wish to provide comments on any of these issues, email testimony to: [email protected].

Taxes and Fees – Article 5, Section 2, 5, 11, 12, 13, 14, 15, 16, 18

Section 2 increases the technology surcharge imposed by the DMV by $1, from $2.50 to $3.50.

Section 5 sunsets the Job Growth Act tax incentive as of January 1, 2026. The incentive allows eligible employees of qualified companies to lower their adjusted gross income for tax purposes by up to 50.0 percent of their income earned from bonuses. According to the Governor’s Office of Revenue Analysis (ORA), the modification is taken by fewer than 10 taxpayers annually. The revenue impact of eliminating this underutilized tax expenditure for FY2026 is $1,489 and is $2,979 in FY2027.

Section 11 sunsets the Specialized Mill Building Investment Tax Credit as of January 1, 2026. The State has provided a credit of 10.0 percent of the rehabilitation and reconstruction costs of a certified rehabilitated mill building. The credit was associated with the Mill Building and Economic Revitalization Act, which sunset in 2009. ORA indicates the credit has not been used since tax year 2019.

Section 12 has two notable changes. R&D Credit for Qualified Research Expenses - Carryforward: Extends the period of time that R&D expense tax credits may be carried forward by a taxpayer from seven years to fifteen. The State allows a taxpayer to claim a credit against certain business taxes for certain research expenses. Unused amounts of the credit earned in a taxable year may be carried forward up to seven succeeding tax years. The Governor recommends extending this carryforward period to fifteen, bringing Rhode Island in line with Massachusetts and Connecticut. ORA indicates that there is no fiscal impact. Section 12 also sunsets the New R&D Facilities Deduction and Property Credit as of January 1, 2026. The State
has allowed eligible taxpayers to deduct expenditures related to the development of any new tangible property related to research and development, including construction and acquisition costs. Eligible taxpayers may also claim a 10.0 percent credit against certain business taxes for tangible property primarily used for R&D. Taxpayers must choose either the deduction or the credit. According to the ORA, these tax expenditures are underutilized, as fewer than 30 taxpayers were projected to claim the deduction in 2024.


Section 13 provides $235 million in aid to municipalities to reimburse for lost revenue from the repeal of the motor vehicle excise tax. It eliminates the sales tax inflator, and sets annual reimbursement at the higher of Fy24 or FY25 funding levels.


Section 14 sunsets the Small Business Capital Investment Wage Credit as of January 1, 2026. The State has provided eligible entrepreneurs of qualifying businesses a tax credit for 3.0 percent of employee wages in excess of the $50,000. According to the ORA, this credit is statutorily obsolete. There has been no activity related to this tax expenditure since at least TY2019.


Section 15 sunsets the Small Business Investment Deduction and Modification as of January 1, 2026. Taxpayers may take a deduction or modification to offset their business or income tax liability if they have made a qualifying investment in a certified venture capital partnership. According to the Office of Revenue Analysis (ORA) this is an underutilized tax expenditure. The revenue impact of repealing this tax expenditure is $6,551 in FY2026 and $13,102 in FY2027.


Section 16 authorizes a financial institution data match system for state tax collection purposes. The section specifically requires the Division of Taxation to develop and operate the data match system. It requires all financial institutions doing business in the state to develop a data matching system to facilitate the identification and seizure of non-exempt financial assets of delinquent taxpayers as identified by the Division. It requires financial institutions to report data matching information to the Division at least quarterly, including delinquent taxpayers’ names, addresses, social security numbers, account numbers, and balances. The section also provides the financial institutions with legal protections associated with the disclosure of this information to Taxation. The section prohibits the financial institution and the third party from disclosing information exchanged in the data match system (including to the account holder) unless authorized by the tax administrator. It includes penalties in the event this is violated. The ORA estimates that the data matching program will yield an additional $5.3 million in general revenue in FY2026, and $8.0 million in FY2027, based on an October 15, 2026, program start date.


Section 18 prohibits municipalities from establishing and enforcing restrictions related to home based businesses whose activity is not public facing, to ensure remote workers do not need a home occupation permit.


Wednesday, February 26th
Taxes & Fees
The House Finance Committee will conduct a hearing at 4pm in Room 35 on sections of Budget Article 5 relative to Taxes and Fees and Article 6 relative to Economic Development. The information provided below about these articles comes from the House and Senate Fiscal Staff
analyses that provide helpful summaries of the sections. If you wish to provide comments on any of these issues, email testimony to [email protected].

Sections 5, 11, 12, 14, 15, 16 are described above.

Section 1 extends the Job Development Fund assessment to non-profit organizations with more than 500 employees. The Governor’s budget office estimates raising $2.3 million in new funding from this initiative.

Sections 8 and 9 assume an additional $4.4 million in revenues from a proposal to increase the cigarette tax by 50 cents to $5.00 per 20-pack, effective September 2, 2025 (including a floor tax adjustment for retailers). This assumption was calculated by assuming $4.7 million more in excise tax offset by a $0.3 million reduction in applicable sales tax to reflect a decline in consumption linked to the higher cost. The estimated FY 2027 value is $3.3 million.


Section 17 imposes a new tax on a company’s annual gross revenue derived from digital advertising services in Rhode Island. The initiative is estimated to generate $9.5 million in FY2026 based on a January 1, 2026 effective date. This grows to $19.6 million in FY2027 with a full year of the tax. The digital advertising gross revenues tax (DAT) is equal to 10.0 percent of the assessable base for a taxpayer with annual gross revenues exceeding $1.0 billion. The article also prohibits a business that derives income from digital advertising services in Rhode Island from directly passing on the cost of the tax to a customer who purchases the digital advertising by means of as separate fee, surcharge, or line-item. Businesses with annual gross revenues below $1.0 billion are exempt from the tax. Taxpayers must apportion their digital advertising revenue based on the number of devices accessing the advertising in Rhode Island compared to the total number accessing it outside of the state. The Governor’s proposal is based on Maryland’s digital advertising tax, the only state currently to pass this idea. Businesses are currently challenging the legality of the program in court.


Article 6 – Economic Development


Article 6 reauthorizes the Executive Office of Commerce’s incentive programs for an additional year by extending the statutory sunset provisions placed on them from December 31, 2025, to December 31, 2026 (Rebuild RI, Wavemaker Fellowship, Innovate RI, Innovation Initiative, Main Streets Revitalization, First Wave Closing Fund, I-195 Redevelopment Fund). It also permanently eliminates the sunset for the Small Business Assistance Program Act, and does not extend the sunset for the P-Tech program, effectively ending the program on December 31 of this year. The article deregulates retail sales operations on legal holidays, other than Christmas and Thanksgiving, by eliminating holiday operations licensing requirements. The repeal of holiday business licensing would negatively impact most municipal revenues, but the magnitude is unknown. Lastly, Article 6 simplifies how a consumer may be able to opt out of contracts with health clubs and dating services by adding e-mail as an allowed form of contract termination communication. The repeal of holiday business licensing would negatively impact most municipal revenues, but the magnitude is unknown.




Thursday, February 27th


Wavier of Interest on Commercial Properties
The House Committee on Municipal Government & Housing is scheduled to consider at the Rise in the House Lounge H 5269, which would allow the waiver of interest on overdue taxes for commercial properties.


Homestead Exemptions
The House Committee on Municipal Government & Housing will also conduct a hearing on H 5308, which would permit every municipality to offer homestead exemptions up to 20% of assessed value on residential properties. If you wish to submit written comment, please email it to [email protected].




Commercial Driving Instruction
The House Committee on State Government & Elections is scheduled to consider at the Rise in Room 101 H 5231, which would provide that commercial driving instruction include training on the recognition, prevention, and reporting of human trafficking.




Climate Superfund
The House Environment & Natural Resources Committee will conduct a hearing at the Rise in Room 135 on H 5424, which would recover funds from entities that extracted or refined fossil fuesl and were responsible for more than one billion tons of covered greenhouse gas emissions. If you wish to provide comments, please email testimony to [email protected].






Real Estate Conveyance Tax
The House Finance Committee will conduct a hearing at the Rise in Room 35 on section 10 of Budget Article 5 relative to the real estate conveyance tax (RECT) statute. The State currently imposes a tax on each deed, instrument, or writing by which interests in real estate are conveyed to a purchaser when the value of the transfer is greater than $100. The tax rate is $2.30 for each additional $500 in value (0.46 percent). For transactions valued $800,000 and above, the RECT rate applied to the value above that amount doubles from $2.30 to $4.60 per each $500 (0.92 percent of the additional value). Section 10 of Article 5 amends the real estate conveyance tax statute. For residential real estate transactions valued above $800,000 a new tax is imposed (in addition to two described above) on the amount above the first $800,000. The new tax is applied at a rate of $1.65 per $500, or fractional part of it (0.33 percent for a total of 1.25 percent on the value over $800,000). As a comparison, Massachusetts has a real estate conveyance tax of $2.28 per $500 (0.456 percent). Connecticut’s tax is 0.75 percent for residential real estate below $800,000, 1.25 percent for property above $800,000 but below $2.5 million. The tax is 2.25 percent on transactions valued above $2.5 million. If you wish to provide comments on any of these issues, email testimony to [email protected].




Economic Development
The Senate Finance Committee will conduct a hearing at 4pm in Room 211 on Article 6 relative to Economic Development, which is described above. If you wish to provide comments on any of these issues, email testimony to: [email protected].






The following new bills have been filed:
Senate Bill No. 316
BY Zurier, Pearson, Britto, de la Cruz, DiPalma
ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE CORPORATION (Requires a seventy-five percent (75%) supermajority vote by the board of directors to establish a quorum and to approve any action taken by the commerce corporation.)
Senate Bill No. 318
BY Tikoian, Lawson, Dimitri, Burke, Urso, Britto, Sosnowski, Rogers, LaMountain, de la Cruz
ENTITLED, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- LONG TERM CONTRACTING STANDARDS FOR RENEWABLE ENERGY (Allows for the procurement of nuclear power.)
Senate Bill No. 326
BY Ujifusa, Euer, Bell, Kallman, Valverde, Gu, Britto, DiMario, Mack, Sosnowski
ENTITLED, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND CLIMATE SUPERFUND ACT OF 2025 (Establishes the Rhode Island Climate Superfund Act cost recovery program.)
Senate Bill No. 329
BY Murray, Gu, Ciccone, Sosnowski, Lawson, Felag, Bissaillon, Urso, Acosta, Pearson
ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Creates an additional tax rate of 3% on taxable income over $625,000 in 2025 dollars. Applies to tax years 2026 and thereafter and not retroactively.)
Senate Bill No. 330
BY Burke, LaMountain, Tikoian, Raptakis, Appollonio
ENTITLED, AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES (Allows the waiver of interest on overdue taxes for commercial properties.)
Senate Bill No. 338
BY Sosnowski, Euer, McKenney, Kallman, Murray, Valverde
ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- ECONOMIC AND CLIMATE RESILIENCE ACT OF 2025 (Establishes a fee on companies that sell fossil fuels in Rhode Island and establishes a fund to disburse the collected funds.)
Senate Bill No. 346
BY Bell, Ujifusa, Murray, Valverde, Lawson, DiMario, Mack, Euer, Quezada, Kallman
ENTITLED, AN ACT RELATING TO HEALTH AND SAFETY -- THE RHODE ISLAND COMPREHENSIVE HEALTH INSURANCE PROGRAM (Establishes a single-payer health care insurance system, consolidating public and private payments into a more efficient Medicare-for-all style program, funded by progressive taxes, to reduce health care costs.)
Senate Bill No. 353
BY McKenney, LaMountain, Burke
ENTITLED, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE IN PARTICULAR ACTIONS -- ARBITRATION (Extends time for a party to apply for stay of arbitration to180 days; invalidates any provision that penalizes a party for seeking legal representation; requires arbitrator to provide notice of default to a party for failure to pay fees.)
Senate Bill No. 358
BY Gu, Zurier, DiPalma, Burke, Bell, Kallman, Bissaillon, Euer, Tikoian
ENTITLED, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- CAUSES OF ACTION (Provides a civil cause of action for individuals injured by artificial intelligence.)
Senate Bill No. 361
BY Urso, Sosnowski, Murray, Euer, Gallo, Lawson, Felag, DiPalma, Tikoian, Britto
ENTITLED, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES (Updates and 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.

Legislative Break Week
The General Assembly is observing the annual February legislative break this week.
Next Week At the State House – Finance Committee Hearings
Most hearings for the week of February 25 – 27 will be posted this week. However, the House Finance Committee has provided extra preparation time for a few hearings by posting them last Friday. The information provided below about these articles comes from the House and Senate Fiscal Staff analyses that provide helpful summaries of the sections. If you wish to provide comments on any of these issues, email testimony to [email protected]
Wednesday, February 26th 4:00 p.m. in Room 35
Taxes and Fees – Article 5, Sections 1, 5, 8, 9, 11, 12 and 14-18
Section 1 extends the Job Development Fund assessment to non-profit organizations with more than 500 employees. The Governor’s budget office estimates raising $2.3 million in new funding from this initiative.
Section 5 sunsets the Job Growth Act tax incentive as of January 1, 2026. The incentive allows eligible employees of qualified companies to lower their adjusted gross income for tax purposes by up to 50.0 percent of their income earned from bonuses. According to the Governor’s Office of Revenue Analysis (ORA), the modification is taken by fewer than 10 taxpayers annually. The revenue impact of eliminating this underutilized tax expenditure for FY2026 is $1,489 and is $2,979 in FY2027.


Sections 8 and 9 assume an additional $4.4 million in revenues from a proposal to increase the cigarette tax by 50 cents to $5.00 per 20-pack, effective September 2, 2025 (including a floor tax adjustment for retailers). This assumption was calculated by assuming $4.7 million more in excise tax offset by a $0.3 million reduction in applicable sales tax to reflect a decline in consumption linked to the higher cost. The estimated FY 2027 value is $3.3 million.


Section 11 sunsets the Specialized Mill Building Investment Tax Credit as of January 1, 2026. The State has provided a credit of 10.0 percent of the rehabilitation and reconstruction costs of a certified rehabilitated mill building. The credit was associated with the Mill Building and Economic Revitalization Act, which sunset in 2009. ORA indicates the credit has not been used since tax year 2019.


Section 12 has two notable changes. R&D Credit for Qualified Research Expenses - Carryforward: Extends the period of time that R&D expense tax credits may be carried forward by a taxpayer from seven years to fifteen. The State allows a taxpayer to claim a credit against certain business taxes for certain research expenses. Unused amounts of the credit earned in a taxable year may be carried forward up to seven succeeding tax years. The Governor recommends extending this carryforward period to fifteen, bringing Rhode Island in line with
Massachusetts and Connecticut. ORA indicates that there is no fiscal impact. Section 12 also sunsets the New R&D Facilities Deduction and Property Credit as of January 1, 2026. The State has allowed eligible taxpayers to deduct expenditures related to the development of any new tangible property related to research and development, including construction and acquisition costs. Eligible taxpayers may also claim a 10.0 percent credit against certain business taxes for tangible property primarily used for R&D. Taxpayers must choose either the deduction or the credit. According to the ORA, these tax expenditures are underutilized, as fewer than 30 taxpayers were projected to claim the deduction in 2024.


Section 14 sunsets the Small Business Capital Investment Wage Credit as of January 1, 2026. The State has provided eligible entrepreneurs of qualifying businesses a tax credit for 3.0 percent of employee wages in excess of the $50,000. According to the ORA, this credit is statutorily obsolete. There has been no activity related to this tax expenditure since at least TY2019.


Section 15 sunsets the Small Business Investment Deduction and Modification as of January 1, 2026. Taxpayers may take a deduction or modification to offset their business or income tax liability if they have made a qualifying investment in a certified venture capital partnership. According to the Office of Revenue Analysis (ORA) this is an underutilized tax expenditure. The revenue impact of repealing this tax expenditure is $6,551 in FY2026 and $13,102 in FY2027.


Section 16 authorizes a financial institution data match system for state tax collection purposes. The section specifically requires the Division of Taxation to develop and operate the data match system. It requires all financial institutions doing business in the state to develop a data matching system to facilitate the identification and seizure of non-exempt financial assets of delinquent taxpayers as identified by the Division. It requires financial institutions to report data matching information to the Division at least quarterly, including delinquent taxpayers’ names, addresses, social security numbers, account numbers, and balances. The section also provides the financial institutions with legal protections associated with the disclosure of this information to Taxation. The section prohibits the financial institution and the third party from disclosing information exchanged in the data match system (including to the account holder) unless authorized by the tax administrator. It includes penalties in the event this is violated. The ORA estimates that the data matching program will yield an additional $5.3 million in general revenue in FY2026, and $8.0 million in FY2027, based on an October 15, 2026, program start date.


Section 17 imposes a new tax on a company’s annual gross revenue derived from digital advertising services in Rhode Island. The initiative is estimated to generate $9.5 million in FY2026 based on a January 1, 2026 effective date. This grows to $19.6 million in FY2027 with a full year of the tax. The digital advertising gross revenues tax (DAT) is equal to 10.0 percent of the assessable base for a taxpayer with annual gross revenues exceeding $1.0 billion. The article also prohibits a business that derives income from digital advertising services in Rhode Island from directly passing on the cost of the tax to a customer who purchases the digital advertising by means of as separate fee, surcharge, or line-item. Businesses with annual gross revenues below $1.0 billion are exempt from the tax. Taxpayers must apportion their digital advertising revenue based on the number of devices accessing the advertising in Rhode Island compared to the total number accessing it outside of the state. The Governor’s proposal is based on Maryland’s digital advertising tax, the only state currently to pass this idea. Businesses are currently challenging the legality of the program in court.


Article 6 – Economic Development


Article 6 reauthorizes the Executive Office of Commerce’s incentive programs for an additional year by extending the statutory sunset provisions placed on them from December 31, 2025, to December 31, 2026 (Rebuild RI, Wavemaker Fellowship, Innovate RI, Innovation Initiative, Main Streets Revitalization, First Wave Closing Fund, I-195 Redevelopment Fund). It also permanently eliminates the sunset for the Small Business Assistance Program Act, and does not extend the sunset for the P-Tech program, effectively ending the program on December 31 of this year. The article deregulates retail sales operations on legal holidays, other than Christmas and Thanksgiving, by eliminating holiday operations licensing requirements. The repeal of holiday business licensing would negatively impact most municipal revenues, but the magnitude is unknown. Lastly, Article 6 simplifies how a consumer may be able to opt out of contracts with health clubs and dating services by adding e-mail as an allowed form of contract termination communication. The repeal of holiday business licensing would negatively impact most municipal revenues, but the magnitude is unknown.




Thursday, February 27th At the Rise (approximately 4:30 p.m.) in Room 35


Article 5, Section 10 amends the real estate conveyance tax (RECT) statute. The State currently imposes a tax on each deed, instrument, or writing by which interests in real estate are conveyed to a purchaser when the value of the transfer is greater than $100. The tax rate is $2.30 for each additional $500 in value (0.46 percent). For transactions valued $800,000 and above, the RECT rate applied to the value above that amount doubles from $2.30 to $4.60 per each $500 (0.92 percent of the additional value). Section 10 of Article 5 amends the real estate conveyance tax statute. For residential real estate transactions valued above $800,000 a new tax is imposed (in addition to two described above) on the amount above the first $800,000. The new tax is applied at a rate of $1.65 per $500, or fractional part of it (0.33 percent for a total of 1.25 percent on the value over $800,000). As a comparison, Massachusetts has a real estate conveyance tax of $2.28 per $500 (0.456 percent). Connecticut’s tax is 0.75 percent for residential real estate below $800,000, 1.25 percent for property above $800,000 but below $2.5 million. The tax is 2.25 percent on transactions valued above $2.5 million.


The following new bills have been filed:
Senate Bill No. 285 Quezada, Bell, Bissaillon, Ciccone, Mack, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- CONSUMER CREDIT HISTORY EMPLOYMENT PROTECTION ACT -- DECEPTIVE TRADE PRACTICES (Prohibits employers from seeking/using credit reports in making hiring decisions concerning prospective employees, asking questions about the applicant's financial past during interviews or including credit history questions in their job applications.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0285.pdf
Senate Bill No. 302 LaMountain, 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/BillText25/SenateText25/S0302.pdf
Senate Bill No. 310 Quezada, Ciccone, Urso, Thompson, Mack, Patalano, Valverde, Kallman, Lauria, Bissaillon, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Sets the minimum wage for 2026 at $16 per hour, 2027 at $17 per hour, 2028 at $18 per hour, 2029 at $19 per hour and for 2030 at $20 per hour.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0310.pdf
House Bill No. 5418 Nardone, Santucci, Paplauskas, Quattrocchi, Hull, Cortvriend, Place, AN ACT RELATING TO INSURANCE -- SMALL EMPLOYER HEALTH INSURANCE AVAILABILITY ACT (Amends the definition of "small employer" for purposes of the small employer health insurance availability act to mean a business employing less than one hundred (100) employees rather than fifty (50) employees.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5418.pdf
House Bill No. 5424 Boylan, Carson, McGaw, Cortvriend, Spears, Handy, Potter, Speakman, Kislak, Tanzi, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND CLIMATE SUPERFUND ACT OF 2025 (Establishes the Rhode Island Climate Superfund Act cost recovery program.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5424.pdf
House Bill No. 5450 Handy, Cortvriend, Kislak, Stewart, McGaw, Speakman, Boylan, Fogarty, Carson, Ajello, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- ALL-ELECTRIC BUILDING ACT (Provides that no city or town may issue a permit for the construction of new buildings, that are not an all-electric building, if the initial application for a permit was submitted after December 31, 2026, unless certain circumstances apply.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5450.pdf
House Bill No. 5454 Serpa, Ackerman, Fellela, Read, Chippendale, Edwards, O'Brien, Baginski, J. Brien, Azzinaro, AN ACT RELATING TO GENERAL ASSEMBLY -- COMMITTEES AND STAFF (Requires nonprofit, as a condition for requesting state funds from the general assembly, to submit & post on their website, a list of10 of their highest paid director, officer & employee salaries & any forms of compensation provided to those individuals.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5454.pdf
House Bill No. 5456 Santucci, Fascia, Paplauskas, Newberry, Roberts, Hopkins, Chippendale, Place, J. Lombardi, J. Brien, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERCE CORPORATION (Requires a seventy-five percent (75%) supermajority vote by the
board of directors to establish a quorum and to approve any action taken by the commerce corporation.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5456.pdf
House Bill No. 5465 Morales, Potter, Tanzi, Batista, Stewart, Cruz, Handy, J. Lombardi, AN ACT RELATING TO HEALTH AND SAFETY -- THE RHODE ISLAND COMPREHENSIVE HEALTH INSURANCE PROGRAM (Establishes a single-payer health care insurance system, consolidating public and private payments into a more efficient Medicare-for-all style program, funded by progressive taxes, to reduce health care costs.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5465.pdf
House Bill No. 5473 Alzate, Casimiro, Batista, Craven, Donovan, Kislak, Potter, Kazarian, Morales, Stewart, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Creates an additional tax rate of 3% on taxable income over $625,000 in 2025 dollars. Applies to tax years 2026 and thereafter and not retroactively.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5473.pdf
House Bill No. 5492 Boylan, McGaw, Bennett, Kislak, Speakman, Carson, Handy, Cortvriend, Spears, Fogarty, AN ACT RELATING TO HEALTH AND SAFETY -- MICROPLASTICS REDUCTION ACT (Creates the Microplastics Reduction Act to prohibit the sale or distribution of products containing synthetic polymer micro particles.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5492.pdf
House Bill No. 5493 Kislak, Carson, Spears, Handy, Speakman, McGaw, Boylan, Fogarty, Potter, McEntee, AN ACT RELATING TO HEALTH AND SAFETY -- BUILDING DECARBONIZATION ACT OF 2025 (Establishes a program for the energy and water benchmarking of large buildings in Rhode Island and a standard for their energy performance.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5493.pdf
House Bill No. 5506 Craven, O'Brien, Shanley, Dawson, Finkelman, Corvese, Potter, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYEES' FREE SPEECH IN WORKPLACE (Protects employees' rights in the workplace concerning political and religious matters, by creating a civil action that may provide damages and attorneys' fees.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5506.pdf
House Bill No. 5507 Felix, Edwards, Kazarian, Batista, Diaz, Sanchez, Stewart, Morales, Potter, Furtado, AN ACT RELATING TO LABOR AND LABOR
RELATIONS -- MINIMUM WAGES (Gradually increases the minimum wage for employees receiving gratuities.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5507.pdf House Bill No. 5508 Sanchez, Cruz, Stewart, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Provides that commencing January 1, 2026, the minimum wage shall be twenty-two dollars ($22.00) per hour.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5508.pdf
House Bill No. 5531 Stewart, Morales, Potter, AN ACT RELATING TO TAXATION -- RHODE ISLAND NEW QUALIFIED JOBS INCENTIVE ACT 2015 (This act would sunset/discontinue the Jobs Development Act rate reduction as of July 1, 2025.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5531.pdf

The General Assembly will observe the annual February legislative break next week.

Advertising Prices of Goods and Services
The House Corporations Committee has H.5247 on its agenda Tuesday At the Rise (approximately 4:30pm) in Room 101. (https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5247.pdf) The bill, An Act Relating to Commercial Law, declares advertising a price of a good or service that does not include all related fees or charges, a violation of the Deceptive Trade Practices Act. H.5247 does exempt government taxes and fees as well as shipping charges. All other related charges must be disclosed or the provider/retailer is subject to a civil penalty up to $10,000 per violation, or a private or class action suit. Testimony should be emailed to [email protected]

Data Breach Procedural Changes

The House Committee on Innovation, Internet & Technology Committee is meeting at the Rise on Tuesday in Room 136 to discuss proposed changes to Rhode Island’s Data Breach law. H.5301, An Act Relating to Criminal Offenses – Identity Theft Protection Act of 2015, expands the data breach law to any entity or person “that maintains or stores, but does not own or license, data” that includes personal information. A business would be required to notify the licensor of the breach of security along with the date and approximate time of the breach and steps taken to minimize the breach once discovered. The notification must be made “without unreasonable delay,” a term not defined in the legislation. H.5301 seems to expand the notification to breaches affecting less than 500 Rhode Island residents, something that is exempt under current law. Testimony for H.5301 (https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5301.pdf) may be emailed to [email protected]


Cause of Action for Artificial Intelligence

The Chamber anticipates the introduction of many bills that relate to the use of AI; H.5224 is one of the first to receive a hearing. H.5224, An Act Relating to Courts and Civil Procedure – Causes of Action (https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5224.pdf) creates a cause of action for individuals injured by artificial intelligence. If you are using AI, the Chamber encourages you to read this legislation and provide feedback so that we can respond appropriately. The bill addresses AI developers that perform “the initial training of a covered model either by training a model using a sufficient quantity of computing power and cost, or by
fine-tuning an existing covered model or covered model derivative using a quantity of computing power…” H.5224 calls for strict liability of developers under most scenarios. The bill will be heard Tuesday in the House Judiciary Committee, At the Rise, in the House Lounge. Written testimony may be emailed to: [email protected]




Wednesday, February 12th


House Labor to Take Testimony – Warehouse Employees, Workplace Bullying


At the Rise (approximately 4:30 pm), the House Labor Committee will be taking testimony on a couple bills of interest. The hearing will be held in room 101 and written testimony can be emailed to [email protected]


H.5047 covers workers in a warehouse environment. The bill, An Act Relating to Labor Relations – Warehouse Worker Protection Act, requires employers, with 100 or more employees at a single site or 1,000 employees in total, to provide each employee of a warehouse distribution center, at the time of hiring, a written description of quotas related to the employee with defined time periods and any adverse actions that may happen should the employee fail to meet the quota. Employees may also request from the employer a copy of the employee's own speed data as well as the aggregated work speed data for comparable employees working in the facility; however, nothing requires the employer to collect and use speed data. Employers cannot set quotas that prevent an employee from taking meal and restroom breaks. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5047.pdf


H.5132 is the 2025 version of the workplace bullying bill. This legislation establishes an obligation on employers to keep employees safe from psychological abuse in the workplace. The definition of "psychological abuse" under this bill 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. The legislation does include an affirmative defense for employers. To qualify the employer must show it took all steps contemplated in the statute. Presumably that includes: (1) adopting a policy against psychological abuse and anti-retaliation policies; (2) training all managers, supervisors and “representative employees” as to handling complaints of abusive behavior, (3) Posting employees’ rights, (4) Implementing an investigation policy for complaints; (5) Annually filling out the workplace climate survey with OSHA or DLT; (6) Annually reporting the number of employee complaints, disciplines, workers compensation claims, absenteeism rates, stress leave rates, attrition rates, discrimination complaints, investigation rates, follow-up actions; (7) Show employer and representative employees didn’t know or should not have known about the activities. 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 employer is also responsible for the employee’s attorney fees, expert witness fee, and costs.


Thursday, February 13th


Job Development Assessment Expansion


The Senate Finance Committee scheduled a hearing at 4:00 p.m. Thursday in Room 211. The topic of discussion is the Governor’s proposal to extend the job development assessment of 0.21 percent to include non-profit, non-governmental employers of 500 or more employees beginning July 1, 2025 (Article 5, Section 1). According to the fiscal staff analysis, this is estimated to impact 20 to 30 employers annually, and generate approximately $2.6 million. The Governor proposes that $2.3 million of the additional funding be used to support Real Jobs Rhode Island, with the remainder for core unemployment services consistent with the current split of this assessment to other employers. Written testimony may be emailed to [email protected]




The following new bills have been filed:
House Bill No. 5301 Phillips, Serpa, Fellela, Casey, J. Brien, Cruz, O'Brien, Batista, Costantino, AN ACT RELATING TO CRIMINAL OFFENSES-IDENTITY THEFT PROTECTION ACT OF 2015 (Expands responsibilities of agencies, persons or entities that store, own, collect, process, maintain, acquire, use, or licenses data, who experiences a security breach, include providing additional information to persons affected and law enforcement) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5301.pdf
House Bill No. 5304 Hull, Perez, J. Lombardi, Bennett, Biah, O'Brien, Fogarty, Diaz, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER TRANSPORTATION BENEFITS ACT (Establishes the commuter transportation benefit chapter. Employers with five hundred (500) or more employees would be required to establish a pre-tax commuter transportation fringe benefit program.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5304.pdf House Bill No. 5305 Morales, Furtado, McNamara, Stewart, Shanley, Casimiro, Alzate, McEntee, Potter, Cruz, AN ACT RELATING TO HEALTH AND SAFETY -- DIVISION OF OCCUPATIONAL HEALTH (Requires employers to protect employees from extreme temperatures through rest breaks, PPE, training, and equipment, and mandates quarterly supervisor training, to recognize and mitigate heat- and cold-related risks.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5305.pdf
House Bill No. 5314 Kislak, Diaz, J. Lombardi, Hull, Ajello, Slater, Batista, Biah, AN ACT RELATING TO TAXATION -- THE PARKING SERVICES TAXATION ACT (Grants municipalities the authority to impose a parking services
sales tax on parking lots and parking structures that charge for parking services through an ordinance.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5314.pdf
House Bill No. 5316 Finkelman, Solomon, Shanley, Morales, Dawson, Noret, Phillips, Batista, Caldwell, Voas, AN ACT RELATING TO TAXATION -- HOUSING FLEXIBLE SPENDING ACCOUNT ACT OF 2025 (Establishes the Housing Flexible Spending Account Act of 2025 allowing Rhode Island employers to contribute pre-tax income into a housing flexible spending account (H-FSA), for employees to be used for qualified housing expenses.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5316.pdf
House Bill No. 5403 Casey, Solomon, Corvese, J. Brien, Chippendale, Newberry, Finkelman, Santucci, Phillips, Baginski, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Repeals the corporation minimum tax.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5403.pdf
Senate Bill No. 185 Sosnowski, Murray, Zurier, Valverde, Kallman, DiMario, Gu, Ciccone, Pearson, Britto, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND CARRIERS (Creates an income-sensitive tiered subsidy program to ensure that home energy utility costs are affordable for eligible low-income households.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0185.pdf
Senate Bill No. 215 Mack, Ciccone, Murray, Kallman, Lauria, Valverde, Thompson, Quezada, Acosta, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Commencing January 1, 2026, this act would increase the minimum wage for employees receiving gratuities from the current $3.89 to $6.75 per hour.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0215.pdf