​Last Week At the State House
 
The House passed the nearly $14 billion budget on a vote of 69-5 in almost record time.  The funding plan had few amendments added during the debate.  While balanced, the budget utilizes surplus funds for programs that are not one-time programs.  The Senate Finance Committee is scheduled to hear and vote on the bill at the Rise on Tuesday, June 11th
 
 
This Week At the State House
 
Barring a breakdown between the House and Senate, for those that remember the “chicken cage” bill, the General Assembly should complete its work this week.  Many bills are posting for hearings and SubAs are popping up on an hourly basis.  Below are the bills and the SubAs of particular interest that are on the agenda at the time of writing this edition.
 
Monday, June 10th
 
Temporary Caregiver Expansion – Both H.7171 and S.2121 are posted for a vote in the House Labor Committee at 3:30. The bills have been amended by eliminating the increase in dependents allowance and expanding the benefit to any new groups of employees.  The number of weeks is lengthened to seven weeks beginning January 1, 2025, and to eight weeks beginning January 1, 2026.
 
Radon Inspection and Mitigation – H.8335 is scheduled for a hearing in House Corporations Monday at the Rise as well as Tuesday at 3:00.  This bill requires sellers to provide buyers with the results of a radon test that was conducted no later than one year prior to the signing of a purchase and sale agreement.  If the test uncovers a radon level greater than 4.0 picocuries per liter (pCi/L), then the seller must pay for and complete mitigation of the radon prior to the closing date.
 
Data Transparency and Privacy – S.2500 SubA requires any person or entity that processes personal data to identify all categories of information the controller collects, when the controller may disclose such information, how a customer may exercise their customer rights, the purpose for processing the personal data, categories of personal data share with a third party, and means to contact the controller. Entities that control or process personal data of not less than 35,000 customers or at least 10,000 customers and derive more than twenty percent (20%) of gross revenue from the sale of personal data are subject to additional disclosure requirements and must allow customers the right to opt out of the collection of personally identifiable information. There is an exemption for entities subject the federal Gramm Leach Bliley Act.  Any violation of this act would constitute a violation of the general regulatory provisions of commercial law and constitute a deceptive trade practice. If passed, the law would take effect on January 1, 2026. 
 
Citizens Bank Tax Proposal – H.7927 is scheduled for hearing and or consideration in House Finance at 3:30 Monday as well as Tuesday at 3:30. The bill allows a financial institution to elect to be taxed under the single sales factor test like many another multi-jurisdictional businesses in Rhode Island. 
 
 
Tuesday, June 11th  
 
Budget – The Senate Finance Committee is scheduled to vote on the budget at the Rise.
 
Citizens Bank Tax Proposal – The Senate Finance Committee is scheduled to take testimony on S.3152 at the Rise which is identical at this time to H.7927.
 
Housing Package – if you are interested in the housing package and zoning, there are twenty bills scheduled for a vote in the Senate Housing Committee at the Rise.  The entire hearing notice can be viewed at  https://status.rilegislature.gov/documents/agenda-20505.aspx 
 
Washington Bridge Statute of Repose – S.3145 is scheduled for hearing at the Rise.  While the bill is directed at the Washington Bridge, it gives rise to concerns about retroactive changes to law.  The bill retroactively changes the statute of repose for the Washington Bridge.  What does that mean?  Under current law, any person, firm, corporation or legal entity that is involved in the design, construction, repair, modification, etc. to real property can be sued for damages or injuries within ten years of the “substantial completion” of a construction project.  This was litigated in 1985 and upheld by the Rhode Island Supreme Court and it is similar to laws in 46 other states.  S.3145 changes the law as it pertains to the Washington bridge by extending the statute of limitations to ten years from the “date of discovery” or by December 1, 2033, whichever is later, unless the case would be time barred as of the date this legislation becomes law.  So, if the bill were to pass into law July 1, 2024, any entity involved in the Washington bridge where “substantial completion” did not occur before July 1, 2014, would be reachable to sue for liability.  In some instances, this extends the window of liability to close to 20 years.  The reason for setting a time limit to sue in most cases relates to ability to find eye witnesses with memories that are accurate, loss of potential evidence, the influence of other factors that are hard to quantify or qualify over the years.  Insurance companies rely on statutes of limitations and statutes of repose to assess risk in setting premiums or deciding to insure entities.
 
The following new bill was filed last week:
 
Senate Bill No. 3144  Valverde, McKenney, DiMario, Miller, Kallman, Euer, Sosnowski, Murray, Gu, Pearson, AN ACT RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT RECYCLING ACT (Establishes beverage container recycling to be regulated by DEM.)  http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S3144.pdf 
 
Senate Bill No. 3145  Lawson, Britto, Lauria, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- CAUSES OF ACTION (Clarifies the statute of limitations for all causes of action not otherwise time barred that seek damages arising out of or related to the design/construction/supervision/or inspection of the Washington Bridge No. 700, located in East Prov. RI.)  http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S3145.pdf
 
Senate Bill No. 3152  DiPalma, AN ACT RELATING TO TAXATION -- TAXATION OF BANKS (Provides banks with an election to use the allocation and apportionment method of income for purposes of taxation.)  http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S3152.pdf 
 
House Resolution No. 8345  McEntee, Spears, Morales, Bennett, JOINT RESOLUTION EXTENDING THE REPORTING AND EXPIRATION DATES AND AMENDING THE PURPOSE OF THE SPECIAL JOINT LEGISLATIVE COMMISSION TO STUDY AND PROVIDE RECOMMENDATIONS TO PROTECT OUR ENVIRONMENT AND NATURAL RESOURCES FROM PLASTIC BOTTLE WASTE (Extends the reporting and expiration dates, and amend the commission’s purpose to include glass and aluminum products, and would report back by April 30, 2025, and expire on May 5, 2025.)  http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H8345.pdf
 
 
 
 
 
 
 

​This Week At the State House
 
Tuesday, June 4th
 
A new bill was introduced May 29th and is scheduled for hearing Tuesday in the House Judiciary Committee.  While the bill is directed at the Washington Bridge, it gives rise to concerns about retroactive changes to law.  H.8318, An Act Relating to Courts and Civil Procedure – Causes of Action retroactively changes the statute of repose for the Washington Bridge.  What does that mean?  Under current law, any person, firm, corporation or legal entity that is involved in the design, construction, repair, modification, etc. to real property can be sued for damages or injuries within ten years of the “substantial completion” of a construction project.  This was litigated in 1985 and upheld by the Rhode Island Supreme Court and it is similar to laws in 46 other states.  H.8318 changes the law as it pertains to the Washington bridge by extending the statute of limitations to ten years from the “date of discovery” or by December 1, 2033, whichever is later, unless the case would be time barred as of the date this legislation becomes law.  So, if the bill were to pass into law July 1, 2024, any entity involved in the Washington bridge where “substantial completion” did not occur before July 1, 2014, would be reachable to sue for liability.  In some instances, this extends the window of liability to close to 20 years.  The reason for setting a time limit to sue in most cases relates to ability to find eye witnesses with memories that are accurate, loss of potential evidence, the influence of other factors that are hard to quantify or qualify over the years.  Insurance companies rely on statutes of limitations and statutes of repose to assess risk in setting premiums or deciding to insure entities.   (See new file bills below for the actual language)
 
 
The Senate Committee on Environment and Agriculture is voting Tuesday on S.2952, An Act Relating to Health and Safety – Building Decarbonization Act. The bill 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, 2024 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 gives municipalities the authority to go further and require these buildings to be all-electric, instead of “electric ready” unless it is deemed technically infeasible.  No permits can be issued after December 31, 2026, unless the building is all-electric with the option to install a back up system to operate when the electric grid goes down. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2952.pdf 
 
The Senate Labor Committee is scheduled to vote on S.2120, An Act Relating to Businesses and Professions.  This is the Senate companion for H.7015 SubA that was featured in last week’s edition.  If you are in the real estate business, are in the market to buy or sell a house, or if you are a house inspector, contact your legislator quickly.   The bill bans anyone, other than a licensed electrician, from testing wires, conduits and apparatus which includes fixtures, lighting, etc. What this means, is that a potential buyer’s house inspector would no longer be able to inspect switches, lights, or look at a panel to alert the buyer to potential problems.  Buyers, should they wish to have the dwelling’s electrical system included in an inspection would need to hire a licensed electrician to perform the inspection – within the customary ten-day inspection period.  Under current law, a house inspector is permitted to look at these items and recommend the buyer seek advice from a licensed electrician if something appears amiss.  If passed into law, the bill would take effect January 30, 2025.  https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2120.pdf 
 
 
Wednesday, June 5th  
 
The Senate Health and Human Services Committee will be voting on S.2084, An Act Relating to Health and Safety Catastrophic Illness in Children Relief Fund.  S.2084 places a $1.50 per employee tax on businesses to financially fund a new state program entitled the “Catastrophic Illness in Children Relief Fund.”  This fund is meant to aid families of children with serious illnesses.  https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2084.pdf 
 
Friday June 6th
 
The House members will be debating and voting on the State’s budget Friday late afternoon into the evening.  As passed by the House Finance Committee last Friday night, the budget contains 14 Articles.  Below are some highlights:

• The Committee retained language allowing the Governor to transfer surplus ARPA funds to the Unemployment Trust Fund, if any funds remain.  There is no guarantee that monies will be transferred, but the possibility exists.  The budget also extends the timing of the annual adjustment of the UI tax rate in the event monies are available at the end of the fiscal year and the transfer affects the rate.
• Pass Through Entities (PTE) – the Committee adopted the Governor’s recommendation to change the state tax credit definition which is the amount of tax paid by the pass-through entity level that is passed through to an owner.  The Governor proposed to change the definition starting January 1, 2025 from 100% to “ninety percent (90%) of the amount of tax paid by the pass-through entity at the entity level that is passed through to an owner on a pro rata basis.” This will raise the income tax for PTEs.  It is estimated to raise $8.1 million in FY2025 and $16.5 million in FY2026.
• Net Loss Carryforward – for the taxable year beginning January 1, 2025, the deduction can be carried forward for 20 taxable years. 
• Extended the following Economic Development Programs for one more year – Rebuild Rhode Island tax credit, RI Tax Increment Financing, Tax Stabilization Incentive, First Wave Closing Fund, I-195 Redevelopment Project Fund, Small Business Assistance Program, Stay Invested in RI Wavemaker Fellowships, and the Main Street RI Streetscape Improvement Fund
• Delinquent Taxpayers – a list of delinquent taxpayers owing $50,000 or more (where the taxes have been unpaid for 90 days or more) would be posted on a public website
• No Reduction in the Corporate Income Tax – the Governor had proposed a $50 decrease with a revenue loss of $2.5 million
• Eliminated the Governor’s recommendation to add $2 million to capitalize the Small Business Assistance Program.  The Committee believes $3.5 million is still available to make additional loans so it did not include the $2 million request.
• A Medical Debt Relief Program – a new $1 million one-time appropriation.  Eligible RI citizens with 400% or less than the federal poverty line or whose debt is more than 5% of the citizen’s adjusted gross income (and more than $600) can apply
• $250,000 from general revenues for a new electric leaf blower rebate program to be administered by the Office of Energy Resources.  The goal is to encourage commercial landscapers to adopt zero-emissions technology.
• $2 million for a new electric vehicle charging adapter pilot program for residential electric vehicle charging stations
• Cigarette Tax Increase of 25 cents per pack, and a two-tiered tax on vape products.  The Committee also codified the flavored vape ban put in place by the RI Department of Health, but did not include menthol in that list of flavors.  This should allow stores to sell menthol flavored vape products.
• Article 12 makes numerous changes to the Pension system.  It affects individuals differently.  The language can be viewed at:  https://webserver.rilegislature.gov/BillText24/HouseText24/Article-012-SUB-A.pdf
• Bond questions to be placed before the electorate include an additional $20 million for housing, bringing the total housing bond to $120 million; $87 million for URI Biomedical Sciences Building; $73 million for RIC Cybersecurity Building; $53 million for Green Economy Bond ($15 million for Port of Davisville, $2 million for climate resiliency, $5 million for brownfields remediation, $5 million for local recreation projects, $10 million for municipal resiliency, $3 million for the Newport Cliff Walk, $5 million for agriculture land preservation, $3 million for open space, and $5 million for forests and habitat management); $10 million for Cultural Arts ($2 million for Tomaquag Museum, $2 million for Newport Contemporary Ballet, $2 million for trinity Repertory Company and $4 million for RI Council on the Arts).

 
 
 
 
The following new bill was filed last week:
 
House Bill No. 8318  Dawson, Boylan, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- CAUSES OF ACTION (Clarifies the statute of limitations for all causes of action not otherwise time barred that seek damages arising out of or related to the design/construction/supervision/or inspection of the Washington Bridge No. 700, located in East Prov. RI.)  http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H8318.pdf 
 
Senate Bill No. 3107  Britto, Tikoian, Burke, Cano, Murray, Gu, Lawson, AN ACT RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- DIGITAL ELECTRONICS RIGHT TO REPAIR ACT (Establishes a digital electronics right to repair, which would allow for digital electronic equipment and parts that are sold in this state on or after January 1, 2025, to be repaired at an independent repair provider.)   http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S3107.pdf
 
Senate Bill No. 3111  Bissaillon, Euer, Mack, AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- LEAD HAZARD MITIGATION (Requires renovation projects of pre-1978 buildings to comply with provisions of chapter 24.6 of title 23 and chapter 21 of title 28, and require presence of lead inspector and supervisor and require lead training. DLT would ensure compliance.)  http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S3111.pdf 
 
 
 
 
 

​This Week At the State House
 
As we approach the last few weeks of session, most of the bills mentioned in this publication will be scheduled for a vote by the committee, with a few hearings sprinkled throughout.  The House Finance Committee has not posted the budget yet, but is expected to do so at any moment.
 
Tuesday, May 28th  
 
H.7837, An Act Relating to Labor and Labor Relations – Workers Compensation is scheduled for a vote in the House Labor Committee at 3:45.  The Senate version (S.2472) has already passed the Senate.  The bill calls for independent contractors to file annually with the Department of Labor.  A similar bill passed last year and became effective January 1, 2024.  The court reviewed the statute and determined the language required further revision to clarify the intent of the Act.  H.7837 specifies that independent contractors must file annually for each client to be legally considered an individual contractor.  The process is simple.  To file DWC-11-IC form online, go to:  https://dlt.ri.gov/workers-compensation/independent-contractors  If you are a company that hires independent contractors, the Chamber encourages you to verify the form has been filed.
 
The Senate Finance Committee will take testimony on S.2347, An Act Relating to Taxation – Tax on Gains From the Sale or Exchange of Real Property at the Rise (approximately 5:00).  The bill creates a new tax on gains realized from the sale of real property held for six years or less. 
 
                                                                           Gain as a percentage of basis (tax cost)
Years property held by transferor       0-99%             100-199%       200% or more
Less than 4 months                              60%                70%                 80%
4 – 8 months                                        35%                52.5%              70%
8 months - 1 year                                 30%                45%                 60%
1 - 2 years                                           25%                37.5%              50%
2 -  3 years                                           20%                30%                 40%
3 – 4 years                                          15%                22.5%              30%
4 – 5 years                                          10%                15%                 20%
5 – 6 years                                             5%                7.5%                10%
 
Failure to pay the proper tax or to attempt to evade the tax comes with a penalty of up to two years in prison and a fine of $10,000 or five times the amount of the tax that was owed. 
 
If you wish to submit testimony, send it to [email protected]  The bill can be viewed in its entirety at https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2347.pdf 
 
 
A second bill scheduled for hearing at the Rise in Senate Finance is S.2366, An Act Relating to Public Utilities and Carries.  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]
 
The Senate Judiciary Committee will vote on S.3056, An Act Relating to Corporations, Associations, and Partnerships – Rhode Island Business Corporations Act.  The bill allows the Division of Taxation to share certain information with the Secretary of State’s office.  If a business fails to pay taxes to the state as required under law of the period of a year, and no settlement agreement has been entered, a notice of intent to revoke the company’s charter will be sent to the business.  If not corrected, the charter will be revoked.  This bill would take effect January 1, 2025.
 
 
Wednesday, May 29th
 
If you are in the real estate business, are in the market to buy or sell a house, or if you are a house inspector, contact your legislator quickly.  H.7015 SubA, An Act Relating to Businesses and Professions is scheduled for a vote in the House Corporations Committee at the Rise (approximately 5:00).  The Senate version (S.2120) had a hearing in April and was held for further study, keeping it alive for possible consideration.  H.7015 bans anyone, other than a licensed electrician, from testing wires, conduits and apparatus which includes fixtures, lighting, etc. What this means, is that a potential buyer’s house inspector would no longer be able to inspect switches, lights, or look at a panel to alert the buyer to potential problems.  Buyers, should they wish to have the dwelling’s electrical system included in an inspection would need to hire a licensed electrician to perform the inspection – within the customary ten-day inspection period.  Under current law, a house inspector is permitted to look at these items and recommend the buyer seek advice from a licensed electrician if something appears amiss.  If passed into law, the bill would take effect January 30, 2025.
 
 
Thursday, May 30th
 
The Senate Finance Committee will be taking testimony on S.2355, An Act Relating to Taxation – Personal Income Tax.  The bill imposes a Rhode Island personal income surtax of three percent (3%) on taxable income over $1,000,000, with the existing three-bracket personal income tax structure remaining in place. This surtax would be imposed on taxable income after all modifications, standard deductions, and exemptions have been applied; and would apply to tax years ending December 31, 2025 and beyond.    The additional revenue would be placed in a restricted receipt account to be used for child care, public education, roads and bridges and public transportation.  Testimony can be emailed to [email protected]
 
 
Action Needed Now – Contact Your State Senator and Representative
 
Even if you have spoken to you legislators months ago when the Chamber first issued a “Call for Action,” we ask you to contact your state representative and state senator again concerning H.7171/S.2121 – expansion of temporary care giver benefits.
 
H.7171 and S.2121 Acts Relating to Labor and Labor Relations – Temporary Disability Insurance

• Expand the TCI benefit to cover employees who wish to take time to care for a sibling (including half-siblings and foster siblings), a grandchild or a “care recipient.”  A “care recipient” is defined as “a person for whom the employee is responsible for providing or arranging health or safety related care, including, but not limited to, helping the person obtain diagnostic, preventive, routine, or therapeutic health treatment.”
• Increase the benefit provided to twelve (12) weeks in a benefit year beginning January 1, 2025.  This benefit was first extended to employees in 2014 at four (4) weeks.  The legislature increased it to five (5) weeks in 2022 and to six (6) weeks in 2023.  The employer is required to hold the job for the employee that is on leave. 

 
What should I say?  Talk about the difficulties your business is having finding employees in the current market.  Talk about what will happen to your business if one, two, three or ten employes take leave at the same time.  If you have experienced yourself, tell the story.  If you know of a business that is struggling in Massachusetts following the expansion of paid leave, share the story.  It is not hard; and the message or phone call does not have to be lengthy.
 
In a state like Rhode Island, standing up for your business can seem like a daunting task. But that is exactly why we need voices like yours to tell lawmakers the real-world impact of certain policy choices. If they do not hear your story, they cannot be expected to understand the impacts legislation can have on your business.
 
Name
E-mail Address

Representative Edith H. Ajello
[email protected]

Representative Christopher R. Blazejewski
[email protected]

Representative Nathan W. Biah
[email protected]

Representative Rebecca M. Kislak
[email protected]

Representative Anthony J. DeSimone
[email protected]

Representative Raymond A. Hull
[email protected]

Representative David Morales
[email protected]

Representative John J. Lombardi
[email protected]

Representative Enrique George Sanchez
[email protected]

Representative Scott A. Slater
[email protected]

Representative Grace Diaz
[email protected]

Representative Jose F. Batista
[email protected]

Representative Ramon A. Perez
[email protected]

Representative Charlene M. Lima
[email protected]

Representative Barbara Ann Fenton-Fung
[email protected]

Representative Brandon C. Potter
[email protected]

Representative Jacquelyn M. Baginski
[email protected]

Representative Arthur Handy
[email protected]

Representative Joseph M. McNamara
[email protected]

Representative David A. Bennett
[email protected]

Representative Camille F.J Vella-Wilkinson
[email protected]

Representative Joseph J. Solomon, Jr.
[email protected]

Representative K. Joseph Shekarchi
[email protected]

Representative Evan P. Shanley
[email protected]

Representative Thomas E. Noret
[email protected]

Representative Patricia L. Morgan
[email protected]

Representative Patricia A. Serpa
[email protected]

Representative George A Nardone
[email protected]

Representative Sherry Roberts
[email protected]

Representative Justine A. Caldwell
[email protected]

Representative Julie A. Casimiro
[email protected]

Representative Robert E. Craven, Sr.
[email protected]

Representative Carol Hagan McEntee
[email protected]

Representative Teresa Ann Tanzi
[email protected]

Representative Kathleen A. Fogarty
[email protected]

Representative Tina L. Spears
[email protected]

Representative Samuel A. Azzinaro
[email protected]

Representative Brian Patrick Kennedy
[email protected]

Representative Megan L. Cotter
[email protected]

Representative Michael W. Chippendale
[email protected]

Representative Robert J. Quattrocchi
[email protected]

Representative Edward T. Cardillo, Jr.
[email protected]

Representative Deborah A. Fellela
[email protected]

Representative Gregory J. Costantino
[email protected]

Representative Mia A. Ackerman
[email protected]

Representative Mary Ann Shallcross Smith
[email protected]

Representative David J. Place
[email protected]

Representative Brian C. Newberry
[email protected]

Representative Jon D. Brien
[email protected]

Representative Stephen M. Casey
[email protected]

Representative Robert D. Phillips
[email protected]

Representative Alex Marszalkowski
[email protected]

Representative Brian Rea
[email protected]

Representative William W.O'Brien
[email protected]

Representative Arthur J. Corvese
[email protected]

Representative Joshua J. Giraldo
[email protected]

Representative Brandon T. Voas
[email protected]

Representative Cherie L. Cruz
[email protected]

Representative Jennifer A. Stewart
[email protected]

Representative Karen Alzate
[email protected]

Representative Leonela Felix
[email protected]

Representative Mary Duffy Messier
[email protected]

Representative Katherine S. Kazarian
[email protected]

Representative Brianna E. Henries
[email protected]

Representative Matt S. Dawson
[email protected]

Representative Jennifer Smith Boylan
[email protected]

Representative Jason Knight
[email protected]

Representative June Speakman
[email protected]

Representative Susan R. Donovan
[email protected]

Representative John G. Edwards
[email protected]

Representative Michelle E. McGaw
[email protected]

Representative Terri Cortvriend
[email protected]

Representative Marvin L. Abney
[email protected]

Representative Alex Finkelman
[email protected]

Representative Lauren H. Carson
[email protected]

 
 
 
 
The following new bill was filed last week:
 
House Bill No. 8312  McEntee, Spears, Bennett, Fogarty, McGaw, Cortvriend, McNamara, Boylan, Kislak, Carson, AN ACT RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT RECYCLING ACT (Establishes beverage container recycling to be regulated by DEM.)
 
 
 
 

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Contact OMS for Tailored Solutions:
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125 Broadcommon Rd.
Bristol RI, 02809 USA 
Office: 401-213-3320 
                                                              ###

​Do You Want to Run For Office?
 
Do you have an interest in running for office,- time is running out.  Declaration Forms must be filed with your local board of canvassers on June 24th, 25th or 26th.  The form can be found at https://vote.sos.ri.gov/Forms/elections/Forms/24DeclarationofCandidacy.pdf  It must be filed out and filed with an ORIGINAL signature.  After the declaration form is filed, a candidate must collect signatures from other registered voters in the same district.  To run for state senate, you need 100 signatures.  To run for state representative, you need 50 signatures.   
 
Action Needed – Contact Your State Senator and Representative
 
We continue to ask you to contact your state representative and state senator concerning four bills (H.7171/S.2121 – expansion of temporary care giver benefits and H.7793/S.2467 – expansion of family leave benefits).
 
H.7171 and S.2121 Acts Relating to Labor and Labor Relations – Temporary Disability Insurance

• Expand the TCI benefit to cover employees who wish to take time to care for a sibling (including half-siblings and foster siblings), a grandchild or a “care recipient.”  A “care recipient” is defined as “a person for whom the employee is responsible for providing or arranging health or safety related care, including, but not limited to, helping the person obtain diagnostic, preventive, routine, or therapeutic health treatment.”
• Increase the benefit provided to twelve (12) weeks in a benefit year beginning January 1, 2025.  This benefit was first extended to employees in 2014 at four (4) weeks.  The legislature increased it to five (5) weeks in 2022 and to six (6) weeks in 2023.  The employer is required to hold the job for the employee that is on leave. 

 
H.7793 and S.2467, Acts Relating to Labor Relations – Rhode Island Parental and Family Medical Leave Act, increase the number of benefit weeks provided to employees from thirteen weeks every two years, to twenty-four weeks every two years.  While the Chamber understands that this is unpaid leave, the employer must still keep the employee’s job waiting for the person’s return. 
 
In a state like Rhode Island, standing up for your business can seem like a daunting task. But that is exactly why we need voices like yours to tell lawmakers the real-world impact of certain policy choices. If they do not hear your story, they cannot be expected to understand the impacts legislation can have on your business.
 
 
 
This Week At the State House
 
Tuesday, May 21st
 
Financial Institution tax changes will be heard in the Senate Finance Committee at 3:00 in room 211.  In 2015, the Chamber was heavily involved in a debate that resulted in the General Assembly adopting a major change in the way it taxes businesses operating in multiple states.  While some businesses are taxed based on the proportion of sales in Rhode Island versus the sales in other states (referred to as a single sales factor test), financial institutions are taxed based on a calculation that considers the payroll generated in the state, the property valuation in the state and the sales generated in the state (referred to as a three-factor test).  The single sales factor was chosen for most businesses because the three-factor test penalizes businesses that increase the number of employees in the state and that add to their physical footprint here.  At the time of adoption, the use of the three-factor test made sense for financial institutions given the other economic programs available to this industry.  However, those programs are no longer in use, creating a much different landscape for some financial institutions.
 
The Governor’s Amendment #19 request to the budget allows a banking institution to choose to continue the use of the three-factor test, or to choose the single sales factor test.  Once chosen, the institution must stick with that test for five years.
 
Massachusetts recently passed legislation adopting the single sales factor test and included financial institutions. This change creates a strong economic incentive for these businesses to move across the border.  The House Fiscal Analysis estimates the revenue loss at $7.7 million for FY2025 and $15.4 million for FY2026.  However, that must be considered along with the potential revenue loss in income and corporate taxes should a financial institution choose to relocate.  Twenty-six states have adopted the single sales factor apportionment for banks.
 
 
Wednesday, May 22nd
 
H.8242, An Act Relating to Health and Safety – The Rhode Island Comprehensive Health Insurance Program, will be heard in the House Finance Committee at the Rise (approximately 5:00) in Room 35.  This chapter creates the Rhode Island comprehensive health insurance program (RICHIP), as an independent state government agency with a Director, and authority to hire staff as necessary.  RICHIP would annually establish benefits package for participants, including a formulary and a list of other medically necessary goods, as well as a procedure for handling complaints and appeals relating to the benefits package.  The agency would have the authority to establish RICHIP provider reimbursements and a procedure for handling provider complaints and appeals and review budget proposals from providers.  Except for emergency and urgently needed service, RICHIP would not pay for healthcare services obtained outside of Rhode Island unless the out-of-state provider agrees to accept the RICHIP rate for out-of-state providers and the services are considered medically necessary care. H.8242 declares it unlawful for a private health insurer to sell health insurance coverage to qualified Rhode Island residents that duplicates the benefits provided under this legislation.  How is this program funded?  It begins with a 10% payroll tax where employers are responsible for 80% and employees are responsible for 20% (the employer may choose to pay up to 100%).  The tax is calculated using a prior three-year average for the wages.  Self employed individuals pay 100%.  After the initial rate is utilized, the Director may readjust the rates to require higher income individuals to contribute more and reduce the tax on lower income individuals.  The bill also calls for “a progressive contribution based on unearned income, i.e., capital gains, dividends, interest, profits, and rents.”  The bill can bill reviewed in its entirety at https://webserver.rilegislature.gov/BillText/BillText24/HouseText24/H8242.pdf  If you wish to submit testimony, send the letter to [email protected] by 1:00 Wednesday. 
 
Thursday, May 23rd
 
The Treasurer’s Baby Bond Trust Fund is scheduled for hearing in the Senate Finance Committee at the Rise in room 211.  After January 1, 2025, upon birth of an uninsured child or a child that qualifies for Rite Care, the Treasurer would transfer $3000 from the General Funds to a trust fund for that child.  The funds would gain interest over time and could be used for higher education or trade school, apprenticeship program, ownership of a home in Rhode Island, purchase of a vehicle from a Rhode Island dealer or ownership of a business. 
 
 
The following new bill was filed last week:
 
House Bill No. 8274  J. Lombardi, Hull, Potter, Stewart, Morales, Felix, Tanzi, Ajello, Handy, Sanchez, 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/BillText24/HouseText24/H8274.pdf
 
House Bill No. 8279  Diaz, Cortvriend, Handy, Fogarty, Shallcross Smith, Ajello, Slater, Kennedy, Azzinaro, Perez, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- CONSUMER ENFORCEMENT OF ASSISTIVE TECHNOLOGY DEVICE WARRANTIES (Requires manufacturers of assisting technology devices to make available to independent repair providers/the owner of the device, any documentation/parts, software/other items intended for use with the equipment/parts, including updates to software.)
http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H8279.pdf
 
 
 
 
 
 

Thank you to all who Joined us for our Monthly Mingle at the Blount Clam Shack on Wednesday, May 15th!
​Despite the rain, our event saw a fantastic turnout, creating an atmosphere of warmth and camaraderie. A huge thank you goes to Pattie Gaudreau of Blount Clam Shack for generously treating all our guests to a complimentary drink and serving up mouthwatering seafood delights. The vibrant tunes of Dos Burros added to the festivities, courtesy of sponsorship from Marshall Building & Remodeling.  Congratulations to Tim F., our lucky 50/50 winner! Don't miss out on the next Monthy Mingle on June 12, 2024 - mark your calendars and join us for an evening of good company, great food, and memorable moments.  
​Photographs by Devon McWilliams Photography (www.devonmcwilliamsphotography.com).

BayCoast Mortgage Joins Exciting New Program, Giving Homebuyers a Lift Up
 
 
SWANSEA, MA – Buying a home can bring a sense of joy, satisfaction, and accomplishment. But with rising prices in the local housing market combined with today’s uncertain economy, not everyone will have the opportunity to experience the excitement that comes with homeownership. This can be especially true when considering wealth differences in our South Coast community.

That’s why BayCoast Mortgage (baycoastmortgage.com), a leading lender in Southern New England, is proud to announce it is participating in an exciting new program that aims to increase homeownership opportunities throughout our community, with the goal of promoting a more diverse, equitable, and inclusive home-buying environment.

That new program is called Lift Up Homeownership.

Initiated by FHLBank Boston, the Lift Up program provides funding to member financial institutions, including BayCoast Mortgage, to award down payment and closing cost assistance grants of up to $50,000 to people of color including Black/African American, American Indian, Alaska Native, Asian (Native Hawaiian or Pacific Islander), Hispanic, or Latino borrowers earning up to 120% of the area median income (AMI) and are first-time homebuyers.

Lift Up was put in place to address barriers that many people of color face when purchasing a home, including limited savings for a down payment and the racial financial gap that exists in many area cities and towns.

“As part of the BayCoast family, it is our mission to provide exceptional service and financial solutions for our community,” said Nicholas L. Christ, President and CEO of BayCoast Mortgage. “Our partnership with FHLBank Boston will help expand affordable housing opportunities in the South Coast communities we serve by offering critical down payment and closing cost assistance. We’re proud to assist our neighbors as they pursue homeownership and the American Dream.”

A total of $500,000 is available through Lift Up Homeownership, which is a purchase-only program for one-to-four unit properties located in New England. Grants will be available on a first-come, first-served basis.

For further details about the program and to learn if you may qualify, please call BayCoast Mortgage at 877-466-2678 or visit our website at baycoastmortgage.com.


About BayCoast Mortgage

BayCoast Mortgage Company, LLC is a wholly owned subsidiary of BayCoast Bank, serving MA, RI, CT, NH, PA, NJ, MD, VA, SC, NC, and FL, offering a wide variety of home mortgage products, including FHA, VA, Land, Construction, Conforming and Jumbo Loans. Visit baycoastmortgage.com or call 877-466-2678.Contact Us to Learn More 
John McMahon
Senior Vice President
Community Engagement  508-675-4488 
 [email protected]
baycoastmortga

​Last Week At the State House
 
Revenue Estimating Conference – The Numbers Are In
 
The conferees completed their estimates during a seven-hour meeting Friday.  The bottom line – in FY2024, total taxes are up $26.8 million with general revenues up $47.7 million.  For FY2025, taxes are estimated to be $10.2 million more than originally thought, with general revenues up only $9.7 million more than anticipated. 
 
The debate over FY2024 personal income taxes was the longest debate as the tax filing deadline was extended to July 15th this year.  By declaring a state of disaster during the flooding of many Rhode Island cities and towns, the State was required under federal law to extend the tax filing date.  This extension left the conferees asking themselves if final tax collections will track similarly to 2023 because taxpayers have not filed yet, taking advantage of the delayed deadline, or have taxpayers filed as usual and tax payments are lower than anticipated.  In the end, the FY2024 personal income tax collection was set at $1,785,200,000 (down $68.7 million).  The FY2025 estimate is $1,856,600,000 (down $53.6 million from November’s estimate). 
 
Business Corporate taxes are $67.6 million higher than anticipated in FY2024 ($372.5 million), and $30.7 million higher in FY2025 ($345 million).  Sales and use tax collections are also up.  FY2024 collections are estimated at $1.64 billion, an increase of $11.4 million; FY2025 collections are estimated at $1.7 billion, an increase of $19.5 million. 
 
Lottery revenues are estimated to be lower.  The category “lottery” includes revenue from the casinos, lottery games and igaming.  FY2024 saw a slight decrease of $8 million ($428.8 million). The FY2025 estimate is $449.4 million which is $9.4 million less than anticipated during the November, 2023 estimating conference.
 
With caseload estimates also down slightly, the General Assembly will have small amounts of money to work with as they craft the final budget over the following four to six weeks.  The Washington bridge remains in the forefront of all discussions related to spending. 
 
 
This Week At the State House
 
Tuesday, May 14th  
 
The House Finance Committee is meeting Tuesday at the Rise (approximately 4:45) in Room 35.  H.7486, An Act Relating to Taxation – Personal Income Tax – Capital Gains, changes the holding period requirement from five years to one year and lowers the tax rate - unless the asset is a “non-owner occupied asset.”  Non-owner occupied assets valued at $1 million or more would be subject to a capital gains tax rate of $5.00 for each one thousand dollars ($1,000) or fractional part of the assessed value on properties worth at least one million dollars $ 2,000,000; and at the rate of $6.00 for each $1,000 or fractional part of the assessed value on properties worth at least $2,000,000. Businesses involved in investment management services would be subject to a 19% “carried interest fairness fee” if Massachusetts, Connecticut and New Jersey pass the same fee. 
 
Wednesday, May 15th
 
The Senate Labor Committee is scheduled to take testimony on S.2470, An Act Relating to Labor and Labor Relations – Minimum Wages.  The meeting will be held at 4:30 pm in room 313.  This bill would dramatically change the operations of many companies and many sole proprietors in the state.  S.2470 changes the definition of “employee” for the purposes of workers’ compensation, unemployment insurance and TDI qualification.  It proposes to adopt what is sometimes referred to as the “ABC” test.  A person would be deemed an “employee” unless the person can meet all three tests: (1) the person is free from control and direction of the hiring entity (2) the person performs work that 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. 
 
Use of the ABC test would make it very difficult for some professions to work as an independent contractor.  For example, an independent computer technology person could not work as an independent contractor for any business that has an IT person already on staff (even if that person is out on family leave), since it would not qualify as outside the usual course of business.  Any business with a government affairs staff person, would likely not be able to hire an independent lobbyist. It is difficult to imagine all of the possible contractors that may get swept up and reclassified as an employee of multiple businesses, meaning multiple businesses would pay workers compensation, unemployment compensation and TDI for the same person.  The third prong of the test allows independent contractors to be hired if that trade is an established trade or occupation customarily known for having independent contractors.  The third part of the test gives no assistance to emerging technology and innovation.
 
S.2237 is also scheduled for hearing in the Senate Labor Committee.  The bill proposes to increase the tipped wage (also referred to as cash wage) from the current $3.89 per hour to $6.75 per hour January 1, 2025. It is important to understand that “tipped wage” does not equate to the hourly wage paid to the employee.  Both federal and state law require an employee to be paid minimum wage.  If the employee does not make minimum wage when the tipped wage and customer tips are added together, the employer must make up the difference.  If they fail to do so, the employee can file a complaint with the Department of Labor and back wages will be paid and the employer will be penalized. Another consequence of raising the minimum wage and the tipped wage is an increase in premium pay. Rhode Island remains the only state in the country that requires employers to pay premium pay to employees who work Sunday and holidays as part of their normal forty (40) hour work week. 
 
Testimony on both bills may be emailed to [email protected]
 
 
The following new bill was filed last week:
 
House Bill No. 8262  Corvese, Azzinaro, Cardillo, McNamara, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION -- BENEFITS (Amends 4 sections relating to the workers' compensation benefits dealing with increasing the amount of dependent benefits payable to a totally disabled employee comprising this year's annual omnibus bill.)  http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H8262.pdf
 
Senate Bill No. 3068  Ciccone, F. Lombardi, Bissaillon, Britto, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION -- BENEFITS (Amends 4 sections relating to the workers' compensation benefits dealing with increasing the amount of dependent benefits payable to a totally disabled employee comprising this year's annual omnibus bill.)  http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S3068.pdf