An Update From the State House 01-25-19
What’s in the
Governor’s Budget – Article 2
Article 2 deals with various
state funds.
1. Creates a restricted receipt account for
registration fees collected from real estate appraisers, called the CLRA
Account. The state can establish fees
for applications, exams and late fees.
The Annual fee for a residential or general appraiser certificate is
currently $200. The account would be
used to finance costs associated with real estate appraiser registrations.
2. Creates a restricted receipt account for fees
collected in association with the licensing of appraisal management companies. Like the CLRA Account, the monies collected
in the restricted receipt account are to be used for registration operations
within the Department of Business Regulation.
3. Creates a restricted receipt account called
the “State Authorization Reciprocity Agreement” (SARA). Rhode Island’s Council on Postsecondary
Education is responsible for, among other things, entering into interstate reciprocity
agreements regarding postsecondary distance education. Many states have programs to oversee
education facilities providing degrees through internet learning
opportunities. The monies collected
through fees would go to fund our State’s oversight functions.
4. Creates a restricted receipt account within
the Department of Health. All
administrative fees or penalties levied by DoH would be deposited into the
account, called the “health systems monitoring and compliance” account for use
by DoH.
5. Eliminates all marijuana licensing restricted
receipt accounts, the “State Authorization Reciprocity Agreement” account, and
the “De Coppett Estate Fund” from the 10% agency cost recovery allotment. If a state agency has responsibility for
overseeing a restricted receipt account, that agency receives 10% of the funds
collected for the account, as an administration fee. The state can deny the transfer of the
administration fee, but it must be specifically stated in statute.
Article 3 – Relating
to Government Reform
1. Article 3 begins
by addressing the Warwick Airport Parking District. Currently an operator of a transient parking
area pays a permit fee of $10 for each space available for parking up to a
maximum of $250. This Article eliminates
the permit fee.
2. Eliminates the $1
duplicate license fee for Class P liquor licenses for caterers. The license fee will remain at $500, but no
fee will be charged for duplicate licenses.
3. Eliminates the
requirement for cities and towns to have an “inspector of hides and leather.”
4. Makes numerous changes to the Contractor’s Registration
and Licensing Board (CRLB). First, any current
decisions made by the Board can be contested to the Executive Director of the
Board. Article 3 transfers the hearing
review responsibilities to the Department of Business Regulation. The CRLB would not be required to hire an
Executive Director, only “necessary staff.”
Today, each municipality must require contractors to sign a written
affidavit, subject to penalties of perjury, that the contractor is properly
licensed with the CRLB. Article 3
eliminates the affidavit requirement but still requires the municipalities to
require the contractor to be registered.
Lastly, the current law allows the CRLB Executive Director to suspend or
revoke a license in the event he/she feels a health or safety issue is present
thus creating an emergency. The budget
transfers that authority to the Department of Business Regulation.
5. Eliminates the 10
hour OSHA safety course requirement for roofing contractors. Roofing contractors would still be required
to take 10 hours of continuing education – but over a 2-year period instead of
each year. The Article eliminates the
need for a roofing contractor to be bonded in the aggregate amount of the total
dollar value of any contract, but also increases the mandatory insurance
certificate amount from $1.5 million to $2 million.
6. Curiously, Article
3 transfers the responsibility to enforce the State’s false advertising laws
from the Department of Business Regulation, to the Department of Labor and
Training. RIGL 11-18-10 states that no
person or business can disseminate or circulate a message to the public,
whether through print, audio, picture, video…, that includes any representation
which is “untrue and designed to be deceptive or misleading…” Anyone doing so can be fined $50 – $500
and/or imprisoned up to 90 days. It is
unclear if the Governor proposes to transfer employees to DLT to perform this
new function.
7. Eliminates the $10
fee for a motor carrier license, as well as the $10 fee for the decal that must
be displayed in the window of a motor carrier vehicle.
8. Transfers
responsibility for overseeing gasoline pump price displays, mandatory safety
signs, air pump notifications, brand displays and other required gasoline
station signage from the Department of Business Regulation to the Department of
Labor and Training. The Article also
eliminates the $5 fee station owners must pay to the state when they close down
a station.
9. Requires all state
employees that have access to federal tax return information, to complete a
fingerprint-based criminal background check initially, and then again every 10
years. The state will pick up the cost
for current employees; however, new hires will be required to pay the fee. The same background check will be required
for all vendors that have access to federal tax information. An agency can accept a background check that
was performed for another “suitable jurisdiction.”
10. Requires persons
seeking employment (or volunteering) at a family day care, group day care or
child day care center to undergo a criminal background check. This requirement also extends to foster
families and adoptive homes. If a child
care activity is to take place in an individual’s home, any member of that
household must also undergo the background check.
11. Exempts from
licensing mixed martial arts exhibitions that are for amateurs only and are
under the control of an educational institution, religious or charitable
organization. The top prize for such an
event cannot be more than $25.
12. Transfers the
Small Business Ombudsman office from the Office of Regulatory Reform to the
Department of Business Regulation.
13. Requires
employers with an average withholding tax amount of $200 or more per month in
the previous calendar year, to file and remit withholding tax payments by
electronic funds transfers or another electronic means. Failure to submit the tax electronically will
result in an increased tax assessment equal to 5% of the tax owed – or $500
whichever is less – and an additional fee of $50. This new system would be effective January 1,
2020.
The following bills were filed last week:
House
Bill No. 5156 McNamara, Ackerman, Jackson, Solomon, Bennett, AN
ACT RELATING TO TAXATION — PERSONAL INCOME TAX (Excludes pension income from
taxation under the same circumstances as social security exclusion.)
House
Bill No. 5159 Bennett, Edwards, Walsh, Ucci, Hawkins, AN ACT
RELATING TO TAXATION (Provides a tax credit for community service hours
provided by state residents to certain not for profit entities and municipal
departments that are certified to issue credits for state community service
volunteerism hours.)
House
Bill No. 5163 Phillips, Solomon, Shekarchi, Ucci, Hawkins, AN
ACT RELATING TO MOTOR AND OTHER VEHICLES – RHODE ISLAND UNIFORM COMMERCIAL
DRIVER’S LICENSE ACT (Permits applicants for commercial driver’s licenses to
carry over parts of the required examinations that they passed for a period of
two years and require them to retake those portions not passed.)
House
Bill No. 5175 Edwards, Canario, Almeida, Bennett, AN ACT
RELATING TO PUBLIC PROPERTY AND WORKS — LABOR AND PAYMENT OF DEBTS (Amends the
definition of public works so that it would include any public works projects
performed for any city or town or quasi-municipal entity and the state and any
quasi-state entity.)
House
Resolution No. 5186 Tanzi, Shanley, McEntee, Craven, Vella-Wilkinson, HOUSE
RESOLUTION REINSTATING AND EXTENDING THE COMMISSION LIFE AND AMENDING THE
PURPOSE OF THE SPECIAL LEGISLATIVE COMMISSION TO STUDY UNLAWFUL SEXUAL
HARASSMENT IN THE WORKPLACE (Reinstates the membership, extends the reporting
and expiration dates, and amends the purpose of the commission to study
unlawful sexual harassment in the workplace from May 29, 2018, to May 30, 2019,
and expires on July 30, 2019.)
House
Bill No. 5189 Morin, Ucci, Vella-Wilkinson, Marszalkowski, O’Brien, AN
ACT RELATING TO TAXATION — WITHHOLDING OF TAX (Provides that the non-resident
withholding requirement for a corporation that sells real estate be consistent
with the seven percent (7%) corporate income tax rate.)
House
Bill No. 5194 Marshall, O’Brien, Morin,
Vella-Wilkinson, Millea, AN ACT RELATING TO TAXATION — HISTORIC
PRESERVATION TAX CREDITS 2013 (Repeals the sunset provision of chapter 33.6 of
title 44 which grants tax credits to individuals or companies redeveloping
historic structures.)
House
Bill No. 5207 Kennedy, Abney, Azzinaro, Johnston, Casey, AN
ACT RELATING TO INSURANCE — TRAVEL INSURANCE ACT (Creating the travel
insurance act to establish comprehensive/uniform regulatory framework for
travel insurance. Clarifying/bolstering enforcement authority over participants
in the travel insurance industry.)
House
Bill No. 5208 Phillips, Amore,
Serodio, Morin, Casey, AN ACT RELATING TO HEALTH AND SAFETY
(Encourages commercial property owners to install vehicle barriers at their
retail establishment locations, and also permits insurers to consider the
installation of such barriers to provide a discount on the owner’s insurance
policy.)
Senate
Bill No. 37 Ruggerio, Goodwin, McCaffrey, Algiere, Conley, AN
ACT RELATING TO STATE AFFAIRS AND GOVERNMENT — VIDEO-LOTTERY GAMES, TABLE
GAMES AND SPORTS WAGERING (Authorizes and provide for online sports wagering
through authorized hosting facilities in Rhode Island.)
Senate
Bill No. 40 DiPalma, Conley, Euer, Goldin, Paolino, AN ACT
RELATING TO PUBLIC UTILITIES AND CARRIERS – INTERNET SERVICE PROVIDERS – NET
NEUTRALITY (Requires Internet service providers to follow Internet service
neutrality requirements.)
Senate
Bill No. 48 Conley, Lombardi, Crowley, Felag, Pearson, AN
ACT RELATING TO TAXATION — PERSONAL INCOME TAX CREDIT (Establishes personal
income tax credit for persons incurring expenses caring for relative requiring
assistance with daily living activities certified by a licensed physician for
tax years from/after 12/31/19.)
Senate
Bill No. 50 Picard, Murray, AN ACT RELATING TO TAXATION —
PROPERTY SUBJECT TO TAXATION (Provides that a nonprofit hospital facility
converted from for-profit hospital facility would have a payment in lieu of tax
agreement with the applicable city or town or subject to a municipal payment
equal to sixty-five percent (65%) of the tax due.)
Senate
Bill No. 55 Conley, Cano, DiPalma, Felag, Pearson, AN ACT
RELATING TO STATE AFFAIRS AND GOVERNMENT – ESTABLISHING A SMALL BUSINESS
DEVELOPMENT FUND (Establishes small business development fund to encourage
formation of private capital investment in underserved small businesses with
annual report and termination after 6 years.)
Senate
Bill No. 57 Satchell, Conley, Metts, Picard, Cano, AN ACT
RELATING TO STATE AFFAIRS AND GOVERNMENT — MICRO ZONE ECONOMIC REVITALIZATION
ACT (Creates micro zones in distressed areas to stimulate economic
revitalization/employment opportunities/business development through
redevelopment of abandoned industrial/commercial structures.)
Senate
Bill No. 61 Coyne, Seveney, DiPalma,
Euer, Valverde, AN ACT RELATING TO TAXATION — LEVY AND ASSESSMENT
OF LOCAL TAXES (Authorizes cities/towns to establish a property tax credit
program in exchange for volunteer service by persons over age 60 up to $1,500
calculated by multiplying service hours by the state minimum wage per hour.)
Senate
Bill No. 71 Picard, AN ACT RELATING TO PROPERTY —
RESIDENTIAL LANDLORD AND TENANT ACT (Prohibits residential landlords from
terminating period tenancies from December 1 to February 1 and would require
sixty (60) days written notice to the elderly or disabled.)
Senate
Bill No. 90 Ciccone, Pearson, Quezada, Crowley, Felag, AN
ACT RELATING TO LABOR AND LABOR RELATIONS — HEALTHY WORKPLACE (Creates the
“Healthy Workplace Act of 2019” and would establish a cause of action
against employers and employees for workplace bullying, harassment and other
abusive conduct.)
Senate
Bill No. 107 Algiere, Morgan, Paolino, de la Cruz, Rogers, AN
ACT RELATING TO TAXATION – BUSINESS CORPORATION TAX (Reduces the minimum
corporate tax from four hundred dollars ($400) to two hundred fifty dollars
($250) for the year beginning on July 1, 2019, and abolishes the minimum tax
for tax years beginning on or after July 1, 2020.)
Senate
Bill No. 109 Lynch Prata, Metts, Cano, Quezada,
Pearson, AN ACT RELATING TO PUBLIC PROPERTY AND WORKS – MINORITY
BUSINESS ENTERPRISE (Provides that any minority business enterprise that is
certified under the Federal Small Business Act shall be deemed certified by the
department of administration as a minority business enterprise.)
Senate
Bill No. 112 (General Treasurer) Cano, Gallo, Goodwin, Paolino,
McCaffrey
ENTITLED, AN ACT RELATING
TO EDUCATION — FINANCIAL LITERACY (Mandates that a program of financial
literacy be taught to all students in the public high schools throughout the
state of Rhode Island.)
Senate
Bill No. 122 Archambault, Felag, Conley, Cano, McCaffrey, AN
ACT RELATING TO TAXATION – START-UP RHODE ISLAND TAX FREE ZONE PROGRAM
(Establishes the “Start-Up Rhode Island Act,” whereby selected
businesses would not be required to pay state income, business, corporate
taxes, local taxes or franchise fees for a period of up to ten (10) years.)
Senate
Bill No. 134 DiPalma, Pearson, Felag, Seveney, Cano, AN ACT
RELATING TO TAXATION – WITHHOLDING OF TAX (Provides that the non-resident
withholding requirement for a corporation that sells real estate be consistent
with the seven percent (7%) corporate income tax rate.)
Senate
Bill No. 169 Quezada, Euer, Bell, Metts, Crowley, AN ACT
RELATING TO LABOR AND LABOR RELATIONS — WRONGFUL DISCHARGE FROM EMPLOYMENT
(Ends Rhode Island’s “employment-at-will” legal doctrine, provides
job protection for employees that satisfactorily perform their duties provides
specific remedies for wrongful discharge.)
Senate
Bill No. 172 Goodwin, Goldin, AN ACT RELATING TO LABOR AND
LABOR RELATIONS — EQUAL PAY DATA COLLECTION AND REPORTING (Requires employers
with 100 employees to yearly submit a form to the department of labor and
training, which contains information regarding the compensation and hours
worked of employees by age, gender, race, ethnicity, job category and
occupation title.)
Senate
Bill No. 174 Lynch Prata, Goodwin, Metts, McKenney, Conley, AN
ACT RELATING TO LABOR AND LABOR RELATIONS – MINIMUM WAGES (Increases the hourly
minimum wage effective January 2, 2020 to eleven dollars and fifty cents
($11.50) per hour and effective January 1, 2021, to twelve dollars and fifty
cents ($12.50) per hour.
Senate
Bill No. 175 Lawson, Ruggerio, Euer, Goodwin, McCaffrey, AN
ACT RELATING TO LABOR – UNEMPLOYMENT BENEFITS DURING FEDERAL GOVERNMENT
SHUTDOWN (Enables federal employees, who are working during a government
shutdown but not receiving wages, to receive unemployment benefits while they
are working but not getting paid.)
Senate
Bill No. 179 Gallo, Sosnowski, Sheehan, Lombardo, Ciccone, AN
ACT RELATING TO FOOD AND DRUGS — HEALTHY BEVERAGE ACT (Creates the
“Healthy Beverage Act” which would require that children’s meals
offered by restaurants include certain healthy beverage options if the beverage
is automatically included in the meal.)