This Week At the State House Call To Action – The Chamber Needs Your Help
Senate Judiciary - Northern RI Chamber’s Arbitration Facilitation Bill On Thursday, March 13th, at the Rise in Room 313, the Northern RI Chamber will be advocating for the passage of a bill it drafted with the assistance of the US Chamber of Commerce. Last year arbitration legislation was passed at the end of session without the Governor’s signature. Many in the business community tried to get a handle on what the bill would do, but the complexity and the limited experience in other states created a challenge to provide meaningful testimony. In a nutshell, these bills, now law, make it easier to avoid arbitration and therefore force a court system solution. Companies prefer arbitration over litigation because it is usually faster and less expensive. Last year’s law requires businesses, under most circumstances, to pay certain fees and costs before the arbitration can proceed. These fees must be paid “within 30 days” of the “due date” otherwise the business is considered to be in breach of the arbitration agreement and the employee or consumer may choose to (1) withdraw the claim from arbitration and proceed to court (the court must impose sanctions on the business) or (2) compel arbitration and subject the business to attorneys’ fees and costs related to the arbitration. California passed this same law and is now fighting because a company was three days late, subjecting it to large expenses and court proceeding. A business might send the payment on time, but it may arrive late, or sit on the arbitrator’s desk by mistake, leaving the business with costly ramifications. If the arbitration ends up withdrawn, the business is also subject to penalties such as: attorneys’ fees and costs, an evidence sanction prohibiting the business from conducting discovery in the civil action, an order striking out pleadings or parts of the pleadings, an order rendering a judgment by default against the business and contempt sanction by an order. These penalties make it harder for the business to defend itself in court. The new law also states that if one provision in an arbitration agreement between a business and an employee or customer is deemed illegal, the entire agreement is deemed illegal. The Chamber’s bill makes four changes to the existing law: · Exempts arbitration agreements governed by the Federal Arbitration Act (FAA) cited as 9 U.S.C. sections 1-16. The California cases are currently litigating this issue as well. The Chamber expects the losing party in the California Supreme Court Cases to appeal to the US Supreme Court. It will take time for the cases to wind their way through this process so we recommend inserting language to exempt agreements that fall under the FAA until such time as the courts finally decide the issue. · Increases the number of days a party has to apply to stay the arbitration from 20 days to 180 days after receipt of notice of intention to arbitrate. · States that in the event a provision of an arbitration agreement is ruled illegal, only that provision is null and void. The current law declares the entire agreement null and void. · Changes the deadline for payment to the arbiter. This bill deems in compliance a payment “sent” within 30 days of the due date. The bill further allows the business to cure a default of payment within 15 days after the it receives a notice of default. The Chamber is asking for your help. Please consider sending testimony in favor of S.353 to the Senate Judiciary Committee at: [email protected] Tuesday, March 11th Senate Commerce Committee - Storefront Barriers and Employee Transportation Benefits Storefront barriers and transportation fringe benefits are on the agenda of the Senate Commerce Committee at the Rise (approximately 4:30p.m. in Room 212). S.14, An Act Relating to Health and Safety – Vehicle Barriers requires new construction retail establishments to include vehicle barriers in construction plans to protect pedestrians and customers in the establishment. The legislation encourages insurance companies to offer discounts to businesses erecting the barriers. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0014.pdf Written testimony can be emailed to [email protected] S.382, An Act Relating to Labor and Labor Relations – The Commuter Transportation Benefits Act, requires employers with 500 or more employees to establish a pre-tax commuter transportation fringe benefit program effective January 1, 2026. The funds could be used for both highway vehicle and transit benefits. If a covered employer fails to comply, it can be assessed a civil penalty between $100 and $250 for the first violation. An employer has 90 days to offer the pre-tax fringe benefit, before the civil penalty is imposed. After 90 days, each additional 30-day period in which an employer fails to comply is considered a subsequent violation subject to a civil penalty of $250. An employer cannot be penalized more than once in a 30-day period. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0382.pdf Written testimony can be emailed to [email protected] Senate Finance Committee – Workers’ Compensation Fund S.442, An Act Relating to Public Finance – State Funds is a bill the Chamber supports. Under current law, 10% of the monies deposited into the Workers’ Compensation Administration Fund is taken by the state to fund government activities. All restricted receipt accounts are treated in the same way unless specifically exempted under law. S.422 seeks to exempt the Fund from the “cost recovery” program. The Workers’ Compensation Administration Fund is 100% funded by the business community. The assessment is a payment made by insurers and self-insured employers at a rate set by the Department of Labor and Training. Insurers and employers must also pay additional monies into the fund under certain circumstances such as when an injury occurs resulting in death. The Fund itself is used to pay for the workers’ compensation system: the rehabilitation center, fraud prevention, workers’ compensation court expenses, etc. The budget for these activities is about $24 million a year. The Committee is meeting At the Rise in Room 211. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0442.pdf Written testimony can be emailed to [email protected] Wednesday, March 12th Senate Environment & Agriculture – Superfund Retroactive Penalties S.326, An Act Relating to State Affairs and Government – Rhode Island Climate Superfund Act of 2025, is receiving some attention as it is pushed by the Public Citizen’s Climate Accountability Project, an environmental organization run by former state representative and candidate for Lieutenant Governor, Aaron Regunberg. This bill (https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0326.pdf) requires the state and municipalities to add up all of the costs expended in the last sixteen years related to items the bill deems a result of climate change (“work on: coastal areas, stormwater drainage systems; infrastructure, such as roads, bridges, tunnels; mass transit systems including buses, trains and boats; healthcare access and availability, including hospitals; sewage treatment plants; public and private housing and shelters; businesses; Internet broadband systems; energy services, including clean and sustainable options; forests; farms and fisheries; and climate change effect predictive tools). Once the total is calculated, an invoice would be sent to responsible parties defined as large businesses that extract and refine fossil fuels worldwide. A ten percent penalty is added to late payments. This legislation, passed in Vermont, is being challenged by the US Chamber of Commerce in the federal district court for Vermont. The US Chamber Complaint states, “Vermont’s legislature has enacted an unprecedented law, becoming the first state in American history to attempt to impose strict liability on companies based in other States for their purported shares of global greenhouse gas emissions. This law – known as the Climate “Superfund” Act, S.259 (“Act” or “Vermont’s Act”) – does not limit its regulation to greenhouse gas emissions released in Vermont. Rather, it seeks to punish a narrow set of energy producers for global greenhouse gases emitted from all sources in the atmosphere over the course of three prior decades that allegedly caused damage to the State.” Chamber of Commerce of the United States of America and American Petroleum Institute v. Julie Moore. The US Chamber is arguing that the Vermont law is preempted by the U.S. Constitution and federal law, and in violation of the Fifth, Eighth, and Fourteenth Amendments https://www.uschamber.com/assets/documents/Complaint-Chamber-v.-Moore-D.-Vt.pdf Written testimony can be emailed to [email protected] House Environment – Decarbonization of Buildings H.5493, An Act Relating to Health and Safety – Building Decarbonization Act of 2025 bans municipalities from issuing a permit for the construction or alteration of any commercial, residential, or mixed-use buildings if the initial application is submitted after December 31, 2025 and if the building is not made “electric ready.” Electric ready means the building is designed with sufficient capacity for a future retrofit of a mixed-use building to an all-electric building, including space, drainage, electrical conductors, etc. The bill also includes a benchmarking program for buildings over 25,000 sq.ft. The EC4 Committee is authorized under the bill to require owners to submit energy use information that can be used for planning and implementation purposes in meeting the greenhouse gas emission reduction targets related to Rhode Island’s Act on Climate law. The hearing will take place At the Rise in Room 101. https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5493.pdf Written testimony can be emailed to [email protected] Senate Labor & Gaming – Employee Definition, Employee Speech at Work, Extreme Temperatures, Sale of Businesses The Senate Labor & Gaming hearing is scheduled to take place in Room 212 At the Rise. S.124, An Act Relating to Labor and Labor Relations – Labor Relations Act changes the definition of “employee” under Rhode Island law. Members of the unions are pushing this bill as a means to head off any changes in the National Labor Relations Board, but it is unclear if the wording goes beyond the interpretation of the definition today. S.124 defines “employees” as "any person who performs services for another, under the other's control or right of control, and in return for payment or other compensation including, but not limited to, students including teaching assistants, research assistants, fellows, residential assistants and proctors who perform services for an employer, notwithstanding whether supervised teaching, research or other services, are a component of their academic development.” The Chamber is looking for input from the business community related to this proposed change. The bill can be viewed in its entirety at: http://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0124.pdf S.126, An Act Related to Labor and Labor Relations – Employe Free Speech Rights, limits the First Amendment and Fourteenth Amendments rights of employers by barring them from holding mandatory meetings with employees to discuss any issue covered under the bill’s definition of “political matters.” “Political matters” is very broadly defined as, “matters relating to elections for political office, political parties, proposals to change legislation, proposals to change regulation and the decision to join or support any political party or political, civic, community, fraternal or labor organization.” If enacted, S.126 would punitively limit an employer’s ability to educate employees about legislation, regulations or organizing efforts that could significantly affect the business’ operations or the employee’s work responsibilities. It is this very situation that was anticipated, and addressed by Congress under the Taft-Hartley Act of 1947. That federal law specifically allows employers to hold such meetings provided they do not threaten employees in the meeting. Businesses cannot grow and thrive without effective and informative communication lines between employers and employees. S.126 undermines that relationship and creates an unwelcoming environment in which to open and operate a business. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0126.pdf To submit testimony on any bills scheduled for hearing in Senate Labor email it to [email protected] New bills filed: Senate Bill No. 613 (Commerce) Urso, Britto, Ciccone, McKenney, AN ACT RELATING TO TAXATION -- RHODE ISLAND NEW QUALIFIED JOBS INCENTIVE ACT 2015 (Provides that businesses awarded tax credits, under the qualified jobs incentive act, within a specified time period are able to submit certain required documentation by December 31, 2025.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0613.pdf Senate Bill No. 622 (Dept. of Labor and Training) Burke, Tikoian, Appollonio, Raptakis, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY --GENERAL PROVISIONS (Eliminates the "until June 30, 2025" sunset on the increase in the total amount of earnings a partial-unemployment insurance claimant can receive before being entirely disqualified for unemployment insurance benefits.) https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0622.pdf House Bill No. 5692 Place, Santucci, Quattrocchi, Hopkins, Nardone, AN ACT RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES (Allows the operation of a home-based business, which meets criteria for home office IRS income tax deduction, without securing approval from the municipality with no storage of chemicals/park heavy equipment/not more than 10% of premises used for parking.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5692.pdf House Bill No. 5727 Paplauskas, Newberry, Nardone, Place, Brien, Lima, Fascia, Quattrocchi, AN ACT RELATING TO MILITARY AFFAIRS AND DEFENSE -- EMERGENCY MANAGEMENT (Requires the director of the Rhode Island emergency management agency and the Rhode Island commerce commission to develop and implement a plan to assist businesses in obtaining flood insurance through the National Flood Insurance program.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5727.pdf House Bill No. 5753 Costantino, Lima, Solomon, Chippendale, Baginski, Brien, Nardone, Hopkins, Casey, Potter, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Exempts subchapter S corporations in the first year of existence from paying the minimum tax.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5753.pdf House Bill No. 5757 McEntee, Solomon, Caldwell, Phillips, Finkelman, Casey, Cortvriend, Dawson, O'Brien, Carson, AN ACT RELATING TO TAXATION -- STATE TAX OFFICIALS (Caps delinquent tax interest rate at 12%. Prohibits audits beyond 3 years from date of tax filing, 7 years for fraudulent filings, and in no event beyond 10 years from date of filing or required filing date, whichever is later.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5757.pdf House Bill No. 5831 Hopkins, Place, Roberts, Brien, Bennett, Corvese, Chippendale, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- SENIOR SAVINGS PROTECTION ACT (Requires anyone engaged in the sale of goods or services, and who offers a discount to its customers’ for utilizing automatic payment systems, via ACH or EFT or similar payment systems, provide the same discount to any person who is sixty-five (65)) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5831.pdf House Bill No. 5910 Dawson, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- DECISIONS, SPECIAL FINDINGS AND ASSESSMENT OF DAMAGES (Adds the doctrine of assumption of risk to the current comparative negligence statute.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5910.pdf House Bill No. 5940 Stewart, Lombardi, Voas, Tanzi, Morales, Cruz, Potter, Alzate, Cotter, Casimiro, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- THE RHODE ISLAND OPPORTUNITY FOR EMPLOYEE OWNERSHIP ACT (Creates RI opportunity for employee ownership, worker gets notice within seven days of sale of business.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5940.pdf House Bill No. 5971 (Executive Office of Commerce) Solomon, Hull, Casey, Casimiro, Shanley, AN ACT RELATING TO TAXATION -- RHODE ISLAND NEW QUALIFIED JOBS INCENTIVE ACT 2015 (Provides that businesses awarded tax credits, under the qualified jobs incentive act, within a specified time period are able to submit certain required documentation by December 31, 2025.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5971.pdf House Bill No. 6009 Casey, Finkelman, Solomon, Dawson, Chippendale, Shallcross Smith, Corvese, Brien, Baginski, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Authorizes a retroactive tax credit for tax yr 2026/thereafter/allowing investment tax credits to be passed through to the personal income tax returns of eligible Sub-S corporation shareholders/limited liability company members who meet certain conditions) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6009.pdf
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