 Call to Action! PLEASE READ!
The Chamber is asking you to come to the State House this week and/or contact your legislators TODAY! Tangible Tax Exemption – Tuesday, May 9th On the business-friendly side of the ledger, S.928 and S.955, Acts Relating to Taxation – Statewide Tangible Property Tax Exemption are being heard in the Senate Finance Committee Tuesday, May 9th at the Rise (approximately 4:30 pm). S.928 provides a tangible property assessed value exemption up to $100,000 beginning in the tax year ending December 31, 2024. The exemption applies to both municipal and fire district assessments. Similar to the car excise tax phase-out, the state would reimburse the taxing entity for the loss in revenue. S.955 provides tangible tax relief as well, and reimbursement to the taxing entity, but phases it in over a longer period of time. The exemption starts at $5,000 of assessed value in the tax year ending December 31, 2024; increases to $20,000 in 2025; $50,000 in 2026; $100,000 in 2027; and $250,000 in the tax year ending December, 31, 2028. An estimated 85% of all current tangible property taxpayers would have no tax liability once the $100,000 exemption level is reached. That means approximately 32,000 small businesses may no longer be required to file the annual tax form and to pay the tax. Property taxes levied by cities and towns represent arguably the most onerous and anticompetitive tax burden imposed on businesses in Rhode Island. Rhode Island has some of the nation’s highest property taxes in the country – 9th highest property tax collections per capita. Why is this important? Because, studies have shown that high commercial real estate and tangible taxes discourage investment and hinder economic development, and tangible taxes may also discourage businesses from making the capital investments needed to expand or to become more productive. Please send an email to [email protected] before 3:00 pm Tuesday, May 9th. Simply tell the committee, your name, company name and location, and how the paying of the tangible tax affects your business. Thank them for considering your testimony. Wage Theft and Independent Contractor Misclassification Felony – Thursday, May 11th The Chamber does not ask you to come to the State House often, but we are asking now. On Thursday, May 11th at the Rise, approximately 4:30 pm in the House Lounge, the House Judiciary Committee will be taking testimony on H.5902, An Act Relating to Labor and Labor Relations – Payment of Wages. This will likely be the only hearing on this House bill, regardless of any amendments that may come after the initial hearing Thursday. Why does that matter? Please read this entire article to understand the potential scope of this proposal. The Attorney General has requested a change in the law to increase the criminal consequences for failing to pay employees properly and for classifying individuals as independent contractors when the government believes those individuals should be considered employees. There are two distinct pieces to this bill – failure to pay wages properly and the misclassification of employees as independent contractors: Failure to pay employees includes:
If the amount of wages owed in any of the scenarios mentioned above, is valued between $1,500 and $5,000, the employer is subject to imprisonment for up to three years and a fine equal to two times the value of the wages. If the amount owed is between $5,000 and $10,000, the employer is subject to imprisonment for up to six years and a fine equal to two times the value of the wages. If the amount of wages owed is more than $10,000, the employer is subject to imprisonment up to ten years and a fine equal to two times the wages owed. It is unclear who would stand in the shoes of the employer to be subject to prison time. Misclassification of employees:
H.5902 changes the knowing and willful misclassification of an employee as an independent contractor to a felony subject to imprisonment up to three years and a fine of up to two times the value of the wages or $10,000, whichever is greater, for the first offense. Any subsequent offense, within a five-year timeframe, is a felony subject to imprisonment up to five years and a fine of three times the value of the wages or $20,000 whichever is greater. Again, it is unclear who within the company would serve actual prison time. *** IMPORTANT*** There is an effort to change the definition of independent contractor in the State of Rhode Island to make it more difficult to classify an individual as an independent contractor. While H.5902 does not include language to change the definition, there is an effort underway to amend the bill after the Thursday hearing and no further hearing would be required under the legislative rules. The Senate has a bill that limits IC status to those who can meet all of the following: (1) free from control and direction of the hiring entity, (2) the activity is outside the usual course of the hiring entity’s business, and (3) the person is customarily engaged in an independently established trade, occupation, or business, of the same nature as that involved in the work performed. Should this language or some version of this language be inserted into H.5902, the ability of individuals to operate as an independent contractors will disappear and businesses that fail to place their independent contractors on the payroll as employees, will be guilty of a felony. We need you to contact your legislators now. If the wage theft piece of H.5902 is a concern to your business, tell them why. If you hire independent contractors, it is imperative that you tell your legislators not to change the definition of an independent contractor. Provide your name, the name and location of your business, and explanation of how you utilize independent contractors, and what will happen if you have to hire employees to replace your current independent contractors. Written testimony for the committee should be submitted by noon Thursday, May 11th at: [email protected] If you can attend the hearing Thursday, please submit written testimony as well. Thank you for your help! The following new bill has been filed: House Bill No. 6357 Morales, Henries, Stewart, Giraldo, J. Lombardi, Sanchez, Speakman, Batista, Cruz, Biah, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- CREATING GREEN JUSTICE ZONES AND FURTHERING ENVIRONMENTAL JUSTICE (Creates Green Justice Zones to further Environmental Justice for traditionally underserved Rhode Islander communities.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6357.pdf Senate Bill No. 955 de la Cruz, Rogers, Tikoian, DiPalma, Lombardo, Ciccone, Burke, Pearson, AN ACT RELATING TO TAXATION -- STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION (Phases in a permanent tax exemption over 5 years for tangible personal property of businesses of less than $250,000 of assessed value. Provides reimbursement from state revenues for the amount of lost tax revenue resulting from the exemption.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0955.pdf House Bill No. 6372 Solomon, AN ACT RELATING TO HIGHWAYS -- CONSTRUCTION AND STATE MAINTENANCE OF STATE ROADS (Requires DOT to notify any surrounding residential property owners and commercial businesses of any proposed temporary or permanent closure to vehicular traffic of any street, highway or bridge, and to hold a public meeting in regards to closure.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6372.pdf
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This Week At the State House
Tuesday, May 2nd The Senate Commerce Committee will meet Tuesday at the Rise (approximately 4:30pm) in Room 212 to discuss a few bills of interest to the business community. S.173, An Act Relating to Labor and Labor Relations – The Commuter Transportation Benefits Act, affects businesses with 500 or more employees working in the state. The bill requires these entities to create a pre-tax transportation benefit consistent with section 132(f) of the IRS Code at the maximum benefit levels allowable. The amount would be deducted from an employee’s gross income. State and local employers are exempt as are employees subject to a collective bargaining agreement or any business that can show the establishment of the program would pose a severe financial hardship. Any employer that fails to comply is subject to a civil penalty for the first offense of $100-$250 and will have 90 days to come into compliance. After the 90 days have passed, if the employer still fails to comply, a civil penalty of $250 will be assessed every 30 days until the entity implements a program. S.473, An Act Relating to Labor and Labor Relations – Payment of Wages requires every Rhode Island business, with thirty or more employees, to post competitive salary ranges for open positions on the company’s hiring page or on third-party hiring platforms. If an employer fails to post the appropriate information, it is guilty of a misdemeanor and can be fined $400 for each separate offense or imprisoned up to one year. S.754, An Act Relating to Commercial Law – Rhode Island Data Transparency and Privacy Protection Act, is an eighteen-page bill that seeks to restrict the sale of an individual’s personal information to third parties. This often happens on the internet and is why you see pop-up ads for products and services related to internet searches and other on-line activities. But there are many reasons businesses collect and sell data to assist customers. S.754 applies to owners of websites or online services with more than ten employees. Personal data includes a name and a credit card number, or a license number, debit card number, geolocation data, etc. An owner of such a site must clearly disclose all of the categories of information it collects, as well as all third parties to whom the owner discloses the information. Customers must be given an opportunity to opt out of the collection of the data, and they must be permitted to review any data collected and to correct it if they wish. The bill exempts company loyalty programs, rewards programs and club programs such as discount clubs. S.754 exempts financial institutions and HIPAA organizations, but then pulls them back in on the last page of the bill. The bill exempts a number of specialized entities like educational facilities, human research programs, contractors working with the government, etc. Violations of the proposal fall under the penalties of the deceptive trade practices act and includes a fine of $100 to $500 for each inappropriate disclosure of data. There is no private right of action permitted. This bill is very comprehensive. If you have an interest in this issue, the bill can be viewed at: http://webserver.rilegislature.gov/BillText/BillText23/SenateText23/S0754.pdf If you wish to submit written testimony, email it to [email protected] by 3:00pm Tuesday, May 2, 2023. Wednesday, May 3rd The House Finance Committee will be discussing the expansion of family and parental leave in the form of H.5990, An Act Relating to Labor and Labor Relations – Rhode Island Parental and Family Leave Act. At 4:00 in Room 35, this very simple bill will be heard. H.5990 increases the amount of parental or family leave available to an employee from thirteen (13) weeks to twenty-four (24) weeks in any two (2) calendar years. If an employer provides paid leave to employees for a period of time, the additional weeks added under this proposal may remain as unpaid leave. The bill calls for an effective date “upon passage.” The law, as it stands today, applies to employers with 50 or more employees. Leave is available for the care of family members, defined as “a parent, spouse, child, mother-in-law, father-in-law, or the employee himself or herself.” To submit written testimony, use the following link: [email protected] Thursday, May 4th A familiar bill is scheduled for hearing in the Senate Labor Committee Thursday at the Rise in room 211. S.243, An Act Relating to Health and Safety – Catastrophic Illness in Children Relief Fund has been considered in previous years. It creates a fund to financially assist families of children with grave illnesses. S.243 relies on revenues collected through a new $1.50 per employee tax on businesses. According to the Department of Labor and Training’s March report, there are 490,000 nonfarm employees which includes 65,900 government employees. Presumably, this tax would raise over $600,000 for the fund. If you wish to submit testimony, email it to [email protected] by 3:00 pm Thursday. The following new bill has been filed: House Bill No. 6327 Fellela, Messier, Potter, Cruz, Serpa, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- HEALTHY AND SAFE FAMILIES AND WORKPLACES ACT (Mandates that the work week be reduced to thirty-two hours and rate of pay for a thirty-two (32) hour workweek would remain the same as the rate of pay for forty hours.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6327.pdf House Bill No. 6343 Alzate, Henries, Stewart, Speakman, Cotter, Spears, Casimiro, Kazarian, McEntee, Kislak, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MENSTRUATION LEAVE ACT (Grants leave of up to three (3) days per month to menstruating employees.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6343.pdf House Bill No. 6344 Alzate, Stewart, Potter, Cruz, Sanchez, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- HEALTHY AND SAFE FAMILIES AND WORKPLACES ACT (Mandates that the work week be reduced to thirty-two hours and rate of pay for a thirty-two (32) hour workweek would remain the same as the rate of pay for forty hours.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6344.pdf Message from the Department of Labor – Don’t Overpay Unemployment Tax
The Rhode Island Department of Labor is urging all businesses to double check their unemployment tax rate which can be found on your quarterly TX-17 form. According to DLT, many employers have been using an incorrect or old tax rate and overpaying/underpaying their unemployment taxes. Please check your tax rate prior to paying your next quarterly TX-17. First quarter taxes for 2023 are due on or before April 30. While DLT does issue refunds for overpaid taxes, the simple step of checking the rate can save both time and money for businesses and for the state. Underpaying your taxes will lead to unwanted penalties and interest. If you have a payroll company paying your quarterly taxes, make sure they are using the correct rate for your company. Employers may contact the Employer Tax Division at (401) 574-8700, option 1 to obtain their tax rate. You will need your company name, address, Federal ID and your state account number to obtain your tax rate. This Week At the State House Tuesday, April 25th Calling all retailers and restaurants – on Tuesday at the Rise (approximately 4:30) in room 212, the Senate Commerce Committee is taking testimony on S.759, An Act Relating to Commercial Law – Gift Card Fraud. S.759 requires all entities that sell gift cards to display a notice at the location where cards are sold. The notice must caution the purchaser about prepaid card scams and instruct the purchaser on what to do if they suspect they might be a potential victim of such a scam. Employers must train employees on how to identify and respond to gift card fraud and the Attorney General is directed to distribute materials to assist with training. Failure to comply with this law carries a penalty of $500. Written testimony should be emailed to [email protected] H.5897, An Act Relating to Public Utilities and Carries, is the topic of discussion in the House Corporations Committee at the Rise in room 135. 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 Keiser Foundation 2021 report estimates 11.5% of individuals in Rhode Island were living in households under 100% of the poverty level (the latest census report estimates it at 11.4%) and 13.7% of individuals were living in households under 199% of the poverty level. Keiser did not provide a breakdown for 150% of poverty level. Wednesday, April 26th It will be a busy day in the Senate Labor Committee Wednesday at 4:00 sharp in room 212. S.821, An Act Relating to Labor and Labor Relations – Workplace Psychological Safety Act will be heard. This is the new version of what was previously called the workplace “bullying” bill. The bill begins by stating that employees have a right to a physically safe work environment and to a psychologically safe workplace. The term “employee” includes full and part-time workers, independent contractors and temporary employees. Employers have a “responsibility” to monitor, prevent, discourage and address issues or allegations of psychological abuse in the workplace. “Psychological abuse” specifically includes behaviors such as: exclusion, marginalization, spreading of lies, withholding vital information, abusive gestures, frequent request for work below competence level, long-term assigning of tasks beyond the employee’s duties without compensation, physical isolation, ignoring, regular inconsistent instructions, unmanageable workloads, taking credit for work, making snide comments or ridicule publicly, exclusion from work-related social gatherings, changes that could jeopardize future career prospects, discounting a person’s work proposals or opinions, persistent criticism, excessive monitoring, threat of dismissal, and changing work conditions or duties. Within ninety days of enactment, all employers must adopt policy procedures to comply with the law and train managers and supervisors to handle complaints. Employers must have an independent third-party reporting option for employees (which includes independent contractors). When psychological abuse occurs between employees of different employers, all employers are concerned are responsible for investigating and responding to the complaint. S.821 includes a quarterly reporting process; and establishes a fund to pay for state agency response to violations of the act. Employers will pay a premium – similar to workers compensation – in which each employer pays more as complaints are filed. The bill includes fines for employers that fail to properly respond to complaints, and to individuals that engage in psychological abuse. The bill can be read in its entirety at: http://webserver.rilegislature.gov/BillText/BillText23/SenateText23/S0821.pdf A number of minimum wage bills are also on the schedule for hearing and possible consideration. S.37, An Act Relating to Labor and Labor Relations – Minimum Wages, increases the minimum wage to $15 per hour starting January 1, 2024 and to $20 per hour starting January 1, 2025. S.138 An Act Relating to Labor and Labor Relations – Minimum Wages, keeps the current minimum wage increase schedule in place and then increases the wage by the CPI starting January 1, 2028 (if the CPI decreases, the wage does not decrease). S.142 is a resolution creating an eleven-member study commission to complete a comprehensive study of Rhode Island’s minimum wage and report its findings in 2025. S.826, An Act Relating to Labor and Labor Relations – Minimum Wages, increases the minimum wage to $15.50 per hour starting January 1, 2025, $17 per hour starting January 1, 2026, $18.50 January 1, 2027, and $20 per hour January 1, 2028. S.837, An Act Relating to Labor and Labor Relations – Minimum Wages keeps the current wage increase schedule, and then increases the minimum wage by the CPI starting January 1, 2026. Also on the Wednesday agenda is Senate Labor is S.663, An Act Relating to Labor and Labor Relations – Payment of Wages which changes an employer’s responsibilities as it relates to providing for employees with statements of earnings. Today employers must include the hours worked, deductions from gross earnings and an explanation of those deductions. S.663 adds items such as the last four digits of the social security number, deduction explanations in the employee’s preferred language, the employer’s address and name, and output information if pay is based on quantity. S.663 also requires employers to provide a type of “mini employee handbook” to employees in each employee’s primary language. The information includes items such as: wage information, benefits, holiday information, sick time, and travel and expense policies. DataUSA reports that 22.4% of Rhode Island households report speaking a primary language other than English. While the most common non-English language spoken in Rhode Island is Spanish followed by Portuguese, there are reportedly forty-one languages spoken as a primary language in the State. Some families are fluent in both their primary language and English, others are not. S.636 requires employers to adapt to the needs of each individual employee. Finally, S.430, An Act Relating to Labor and Labor Relations – Minimum Wages, changes the definition of “employee” in the State of Rhode Island. The legislation adopts what is known as the “ABC” test to determine whether an individual is an employee or an independent contractor (IC). If passed, S.430 would require and individual to meet three standards to be classified as an IC: (1) free from the control and direction of the hiring entity; (2) person performs work that is outside the usual course of the hiring entity's business; AND (3) person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. The state definition would override the use of the IRS federal factors. Particularly troublesome is the second factor “outside the usual course” of business. If you have someone on staff that performs a similar function, or if your mission includes a particular function, any outside individual hired will have to be classified as an employee. This could easily include lawyers, CPAs, computer service professionals, nurses, occupational therapists, cleaners, etc. If you wish to submit testimony on any of the bills in Senate Labor, it must be emailed to [email protected] prior to 3:00 pm Wednesday. The Senate Committee on Environment & Agriculture is scheduled to VOTE on S.770, An Act Relating to State Affairs and Government – Environmental Justice Act. Part of this bill addresses the ability of the public to participate in discussions over permitting facilities in environmental justice areas such as: “Electric generating facility; Resource recovery facility or incinerator; Sludge combustor facility or incinerator; Transfer station, recycling center, or other solid waste facility; Landfill that accepts ash, construction or demolition debris, or solid waste; Medical waste incinerator; Pyrolysis or gasification facility; Scrap metal facility; Auto salvage operations and/or facility; Asphalt plant; Petroleum storage facility; Ethylene oxide manufacturing and/or storage facility; Construction and/or demolition debris processing facility; or The renewal of any permit listed in this definition.” However, S.770 also requires such facilities to perform a cumulative impact analysis as part of the permit application or permit renewal process. The analysis must look at current and potential future impacts of emissions for activities included under the permit request. If a business fails to complete the analysis, the permit cannot move forward. It is still unclear if the Department of Environmental Management has the database capabilities to allow businesses to undergo this analysis since a business will not only have to have access to their own information, but information of other businesses in the area. Unless the cumulative analysis requirement is removed, companies currently in the industries listed above may not be able to continue operation, directly affecting other businesses and individuals that rely on those activities. The following new bill has been filed: House Bill No. 6287 Slater, Diaz, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- ELECTRICIANS (Amends the state's apprenticeship laws to make them more consistent with applicable federal regulations and makes said laws more comprehendible and consistent with each other.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6287.pdf House Bill No. 6311 Phillips, Cardillo, J. Brien, Corvese, Costantino, Lima, Casey, Noret, Dawson, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Protects and continue health insurance coverage for the dependent of an employee who wishes to change their health insurance coverage to Medicare or are currently on Medicare.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6311.pdf Legislature Prepares to Enter Break Week
This week will mark the end of phase two of the legislative session. Most bills filed prior to the February deadline have received a hearing in the House. The Senate has moved more slowly in its introduction of bills, for appropriate reasons, leaving many hearings to come. The General Assembly will be on break from April 10th through April 14th. When the legislature returns, we can expect numerous Senate hearings, posting of amendments to bills, passage of bills, and a focus on the development of the FY2024 budget. Senate Leadership Announces Support for Tangible Tax Relief At the Chamber’s Eggs and Issues breakfast last week, Senate President Dominick Ruggerio and Senator Melissa Murray announced the introduction of legislation to eliminate the tangible tax for approximately 85% of businesses in Rhode Island. This nuisance tax is well known to companies, as it is not only a double tax on equipment and furniture, but the annual filing form requires time as owners report the value of items purchases, the number of years each piece of equipment/furniture has been in use, and then calculates the depreciation to arrive at a final value for each item in use. The legislation would provide a $100,000 exemption to all tangible tax accounts. Those with more than $100,000 worth of tangible assets would have to pay the tax on the assets above $100,000, but would still receive an equal amount of tax relief. Since the tangible tax is a municipal-level tax rather than a state one, the state would reimburse each city, town and fire district annually for their lost revenue, just as it does for revenue they lost from the phased-out vehicle excise tax. The exemption is estimated to save businesses about $36.6 million. The legislation would take effect in fiscal year 2025, with reimbursement based on the prior year’s FY 2024 tax roll. The bill would also require municipalities and fire districts to cap their tangible property tax rate at the level applied in fiscal year 2023. The tax cap would not apply in the case of municipalities and fire districts that utilize a uniform tax rate for all classes of property. The Chamber has been working with RIPEC on this issue. RIPEC completed a study on the tangible tax to assist legislators in understanding the financial impact associated with various levels of tangible tax exemption options. The Chamber thanks RIPEC for its hard work on this issue. The bill has yet to be assigned a number. This Week At the State House Tuesday, April 4th The House Committee on Innovation, Internet & Technology is meeting at the Rise (approximately 4:30pm) in Room 135. Two bills of interest will be heard by the committee members. H.5684, An Act Relating to Criminal Offenses – Identity Theft Protection Act of 2015, amends notification requirements when a company experiences a security breach. Under current law, business that use or store personal information – including account numbers and credit card numbers, among other items – must notify consumers of a breach within 45 days of the breach event. This timeframe was meant to provide businesses with the time needed to close off any unauthorized access and stop bad actors from doing more harm before the breach becomes public. H.5684 shortens the notification deadline to 15 calendar days; and the State Police must be notified within 24 hours of the detection of the breach. The legislation also awkwardly refers to employees of a local bargaining unit, and the requirement to notify the union leadership of the breach if employees are unionized. This language makes sense, if the business affected is a state or local government, but does not make sense if the breach takes place in a private company with affected customers. Any business that fails to comply with the notification rules is subject to a civil penalty of $100 per record for a reckless violation, and $200 per record for a knowing and willful violation. The language in the bill calls for an effective date upon passage. H.6236, An Act Relating to Commercial Law – Rhode Island Data Transparency and Privacy Protection Act, is an eighteen page bill that seeks to restrict the sale of an individual’s personal information to third parties. This often happens on the internet and is why you see pop-up ads for products and services related to internet searches and other on-line activities. But there are many reasons businesses collect and sell data to assist customers. H.6236 applies to owners of websites or online services with more than ten employees. Personal data includes a name and a credit card number, or a license number, debit card number, geolocation data, etc. An owner of such a site must clearly disclose all of the categories of information it collects, as well as all third parties to whom the owner discloses the information. Customers must be given an opportunity to opt out of the collection of the data, and they must be permitted to review any data collected and to correct it if they wish. The bill exempts company loyalty programs, rewards programs and club programs such as discount clubs. H.6236 exempts financial institutions and HIPAA organizations, but then pulls them back in on the last page of the bill. The bill exempts a number of specialized entities like educational facilities, human research programs, contractors working with the government, etc. Violations of the proposal fall under the penalties of the deceptive trade practices act and includes a fine of $100 to $500 for each inappropriate disclosure of data. There is no private right of action permitted. This bill is very comprehensive. If you have an interest in this issue, the bill can be viewed at: http://webserver.rilegislature.gov/BillText/BillText23/HouseText23/H6236.pdf Written testimony can be submitted to the committee at: [email protected] Wednesday, April 5th The House Corporations Committee is meeting at 4:00pm in Room 101. H.5664, An Act Relating to Corporations, Associations and Partnerships – The Rhode Island Limited Liability Act, provides members of an LLC with the ability to avoid dissolution if one or more members wish to buy out those members who want to dissolve the corporation. A member could file with the court, and notify the other members of the desire to stop the dissolution. If necessary, the court can help to decide the value of the company, and those members who wish to remain in the LLC can pay the proportionate share to transfer the LLC. The bill can be viewed at: http://webserver.rilegislature.gov/BillText/BillText23/HouseText23/H5664.pdf If you wish to submit written testimony, submit it to: [email protected] The following new bills have been filed: House Bill No. 6232 Azzinaro, Corvese, Cardillo, Noret, J. Lombardi, Diaz, Hull, Fellela, Bennett, Kennedy, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES (Annually increases the rate of physicians’ reimbursement for each in-network health care service that are reimbursed below the average reimbursement rates set by Connecticut and Massachusetts.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6232.pdf Senate Bill No. 855 Gu, AN ACT RELATING TO HEALTH AND SAFETY -- STATE BUILDING CODE (Requires the state building code standards committee to revise the state energy conservation code to meet 2024 International Energy Conservation Code electric readiness provisions.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0855.pdf Senate Bill No. 858 Gu, Pearson, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- 2021 ACT ON CLIMATE (Requires an owner of a stationary refrigeration system in Rhode Island to register their system with the department of environmental management.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0858.pdf Senate Bill No. 884 Mack, Kallman, Euer, AN ACT RELATING TO TOWNS AND CITIES -- GENERAL POWERS (Assess a vacancy tax of one percent (1%) of the total assessed value of all real property based on the real property's assessed value for vacant units.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0884.pdf Senate Bill No. 888 LaMountain, Lauria, McKenney, Tikoian, Burke, Valverde, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND NONCOMPETITION AGREEMENT ACT (Prohibits noncompetition agreements except for noncompetition agreements between a seller and buyer of a business.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0888.pdf Senate Bill No. 909 Mack, Euer, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- GREEN JUSTICE ZONES AND ENVIRONMENTAL JUSTICE (Establishes the first Green Justice Zone and environmental justice, a model that may be replicated in future years to ensure that all communities throughout the state have clean air and clean water.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0909.pdf Senate Bill No. 911 Mack, Kallman, Murray, Valverde, Bell, Ujifusa, Acosta, Euer, Lawson, AN ACT RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT (Creates a tenant bill of rights to the right to counsel, the right to habitability, the right to organize free, the right to be free from discrimination, the right to first refusal if the landlord decides to sell the property, and right to renew lease.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0911.pdf This Week At the State House
Tuesday, March 28th Local control over tobacco is a subject of debate in the House Committee on Municipal Government & Housing, Tuesday at the Rise (approximately 4:30 pm) in the House Lounge. H.6091, An Act Relating to Towns and Cities – Ordinances, gives each city and town the authority to adopt laws concerning the sale of tobacco products. This is an attempt to reverse the Rhode Island Supreme Court 2020 decision in “K&W Automotive vs. The Town of Barrington.” The decision struck down a Barrington ordinance banning tobacco sales and stated that Rhode Island has “a legitimate concern that inconsistent regulations respecting tobacco will lead to confusion and decrease compliance with various federal and state regulations. Additionally, in our judgment, a comprehensive approach is desirable because it will increase the effectiveness of tobacco regulations by preventing persons otherwise prohibited from obtaining a certain tobacco product in one municipality from simply traveling to the nearest municipality that does permit such a purchase.” Should the bill pass into law and municipalities ban the sale of tobacco or change the age at which products can be purchased, the State will have to find alternative sources of revenue as the tax on tobacco products raises over $100 million a year. Written testimony can be emailed to [email protected] The Committee is also scheduled to take a vote on H.6087, An Act Relating to Property – Landlord Tenant Act. In its current form, H.6087 prohibits landlords from collecting application fees from potential tenants. During the lengthy hearing on this bill, witnesses recalled landlords taking application fees and then immediately denying the application while keeping the fee. Some witnesses told stories of paying the fee only to find out later the landlord had no vacant apartments to rent. Opponents of the bill argued that legitimate expenses exist in trying to vet potential tenants and that perhaps a balance could be reached – allowing for some amount of fee while penalizing those that abuse the system. A proposed amendment could be posted for consideration as late as Monday at 4:00 pm. Wednesday, March 29th If you decide to attend the House Labor hearing in the House Lounge at the Rise (approximately 4:30 pm) bring your dinner. There are 27 bills on the agenda, including a vote on H.5929, An Act Relating to Labor and Labor Relations – Fair Employment Practices. This bill declares it an unlawful employment practice to require an employee, as a condition of employment, to execute a nondisclosure agreement or an agreement with a clause that requires alleged violations of civil rights remain confidential, or a non-disparagement agreement concerning alleged violations of civil rights. Any such contract provision shall be void. If you wish to submit written testimony for a bill in the House Labor hearing, send it to [email protected] Hearings will take place on the following bills: H.5015, An Act Relating to Labor and Labor Relations - Minimum Wages. H.5015 eliminates the 2014 minimum wage uniformity clause. The Chamber advocated strongly for this clause as uniformity helps employers plan for increases, supports efforts to pay employees correctly if they are working in multiple locations, and inhibits competition between municipalities that attempt to attract the same business. H.5015 allows all 39 cities and towns to adopt their own minimum wage requirement, creating a huge burden on businesses with multiple site locations. H.5372 and H.5747, Acts Relating to Labor and Labor Relations – Payment of Wages create contractor liability for any unpaid wages due to employees of subcontractors or to a third-party. An employee can choose to file a civil complaint or to file a complaint with the Department of Labor to gain relief. If the employee chooses the civil complaint route, that employee can be represented by another person, organization or collective bargaining agent. If an employee files a wage action against a subcontractor, the contractor is jointly and severally liable for all wages, benefits and penalties and attorney fees assessed. Contractors and subcontractors are not permitted to enter into any agreement that eliminates the contractor’s liability. H.5588, An Act Relating to Labor and Labor Relations – Minimum Wage, adjusts the minimum wage annually, starting January 1, 2026, at an amount equal to the cost-of-living increase. H.5589, An Act Relating to Labor and Labor Relations – Minimum Wage increases the minimum wage to $15.50 on January 1, 2025, to $17.00 on January 1, 2026, to $18.50 on January 1, 2027 and to $20.00 on January 1, 2028. In 2021, the General Assembly passed a law phasing in an increase of the minimum wage to reach $15 an hour by January 1, 2025. Under current law, the minimum wage will change to $14 an hour on January 1, 2024 and to $15 an hour on January 1, 2025. H.5928, An Act Relating to Labor and Labor Relations – Minimum Wage increases the minimum wage to $14.50 on January 1, 2024, to $16.75 on January 1, 2025, to $19.00 on January 1, 2026 and annually thereafter based on the cost-of-living adjustment. H.6078, An Act Relating to Labor and Labor Relations – Minimum Wage increases the minimum wage to $15.50 on January 1, 2025, to $17.00 on January 1, 2026, to $18.50 on January 1, 2027, to $20.00 on January 1, 2028, and annually thereafter based on the cost-of-living adjustment. H.5592, An Act Relating to Labor and Labor Relations – Inspection of Personnel Files proposes a number of changes to an employee’s right to review personnel files. Rhode Island law grants employees the right to inspect their own personnel files. To exercise this right, an employee makes the request, and the employer must allow that employee to see the file within seven days of the request (excluding holidays and Sundays). An employee can request copies from the employer, with the employer having the right to charge a reasonable amount to make the copies. The current law recognizes the employer’s right to maintain the records, and the employee’s right to review the records. H.5592 reduces the timeframe for an employer to respond to a request from seven days to five days. The request is no longer for the ability to review documents, but to obtain a full copy of the file at the expense of the employer; and it applies to former employees as well as existing employees. H.5592 requires employers to keep specific information in the file for a period of three years. The bill also carries penalties including a $500-$2500 fine to be collected by the Department of Labor, and a fine of $500 to the employee, in addition to any other relief the employee might be entitled to under law. H.5707, An Act Relating to Labor and Labor Relations – Payment of Wages changes an employer’s responsibilities as it relates to providing for employees with statements of earnings. Today employers must include the hours worked, deductions from gross earnings and an explanation of those deductions. H.5707 adds items such as the last four digits of the social security number, deduction explanations in the employee’s preferred language, the employer’s address and name, and output information if pay is based on quantity. H.5707 also requires employers to provide a type of “mini employee handbook” to employees in each employee’s primary language. The information includes items such as: wage information, benefits, holiday information, sick time, and travel and expense policies. DataUSA reports that 22.4% of Rhode Island households report speaking a primary language other than English. While the most common non-English language spoken in Rhode Island is Spanish followed by Portuguese, there are reportedly forty-one languages spoken as a primary language in the State. Some families are fluent in both their primary language and English, others are not. H.5707 requires employers to adapt to the needs of each individual employee. H.5708, An Act Relating to Labor and Labor Relations – Payment of Wages requires every Rhode Island business, with thirty or more employees, to post competitive salary ranges for open positions on the company’s hiring page or on third-party hiring platforms. If an employer fails to post the appropriate information, it is guilty of a misdemeanor and can be fined $400 for each separate offense or imprisoned up to one year. The following new bills have been filed: Senate Bill No. 716 (Dept. of Labor and Training) Goodwin, DiPalma, Ciccone, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY -- GENERAL PROVISIONS (Eliminates the "until June 30, 2023" 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.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0716.pdf Senate Bill No. 753 Valverde, McKenney, DiMario, Miller, Murray, Euer, Sosnowski, Gallo, Gu, Kallman, AN ACT RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT RECYCLING ACT OF 2023 (Establishes a system for the recycling of beverage containers working with the department of environmental management.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0753.pdf Senate Bill No. 754 BY DiPalma, Euer, Tikoian, McKenney, Burke, Quezada, F. Lombardi, Zurier, Gu, Picard ENTITLED, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- RHODE ISLAND DATA TRANSPARENCY AND PRIVACY PROTECTION ACT (Provides data privacy protections for the personal identifiable information of Rhode Islanders.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0754.pdf Senate Bill No. 759 Gu, Sosnowski, Euer, Mack, Britto, Kallman, DiPalma, Gallo, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- GIFT CARD FRAUD (Requires sellers of gift cards to post notice warning of scams/instructing consumers what to do as victims/train employees to identify/respond to fraud/violations punishable by a civil fine of $500.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0759.pdf Senate Bill No. 770 Euer, Cano, Mack, Murray, Lauria, Acosta, DiMario, Miller, Sosnowski, Britto, 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.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0770.pdf Senate Bill No. 778 Lauria, Ruggerio, Pearson, Miller, DiMario, Gu, Lawson, DiPalma, AN ACT RELATING TO TAXATION -- RHODE ISLAND WOMEN'S EQUITY INCENTIVE ACT OF 2023 (Creates the Rhode Island Women’s Equity Incentive Act of 2023 offering tax credits up to $3,500 per employee per year to eligible businesses.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0778.pdf Senate Bill No. 821 Ciccone, Britto, DiPalma, F. Lombardi, Burke, Tikoian, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKPLACE PSYCHOLOGICAL SAFETY ACT (Protects bullying/psychological abuse in workplace inflicted upon employees by employers/co-employees/provides civil remedies to affected employees/fines against employers/imprisonment/fines against co-employees.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0821.pdf Senate Bill No. 825 Ruggerio, Pearson, Gallo, DiPalma, LaMountain, Tikoian, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- REAL JOBS RHODE ISLAND ACT (Establishes a real job Rhode Island program, which is an industry-led system to advance the skills of the state's workforce to grow the state's economy and increase sustainable employment for middle-class families.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0825.pdf Senate Bill No. 826 Mack, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Raises the minimum wage for the years 2025, 2026, 2027, 2028 and 2029, to $15.50, $17.00, $18.50, $20.00, and $21.00, per hour, respectively.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0826.pdf Senate Bill No. 827 Mack, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Raises minimum wage on January 1, 2026 and each January 1 thereafter, by the percentage increase in the CPI-U, as published by the US Dept. of Labor Statistics, as of August of the previous year over the level as of August of the year preceding that year.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0827.pdf Senate Bill No. 828 Goodwin, Lawson, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES (Eliminates repealed statute references and create a mechanism for employees to enforce their existing right to continuation of medical benefits.) http://webserver.rilin.state.ri.us/BillText/BillText23/SenateText23/S0828.pdf House Bill No. 6187 (by request) Dawson, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Exempts new entities in the first two (2) years of existence from paying the minimum tax if annual net taxable income is less than five thousand dollars ($5,000).) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6187.pdf House Bill No. 6196 Alzate, Batista, Giraldo, Potter, Boylan, Speakman, Henries, Felix, Morales, Tanzi, 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.) http://webserver.rilin.state.ri.us/BillText/BillText23/HouseText23/H6196.pdf  This Week At the State House
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