Legislative Updates
Advocacy in Action
March 2, 2026
This Week at the State House
Tuesday, March 3rd
Tax Amnesty; Tax Rates
The House Finance Committee will convene at the Rise (approximately 4:30 p.m.) in Room 35. The agenda includes the Governor’s tax amnesty program as well as the increase in the personal income tax rate for higher income earners, that are contained in Article 5:
- Section 1 – Tax Amnesty
- Projected to generate $26.3M in FY27, the budget proposes a tax amnesty program to help collect outstanding tax debts prior to 12/31/25 that would waive penalties and reduce interest owed by 25% for participants in the program that would run from December 2026 to February 2027.
- Section 2 – Business Corporation Tax
- For tax years beginning 1/1/27, any pass-through entities electing to pay the state tax at the entity level would see the rate increase from 5.99% to 8.99%.
- Projected to generate $22.6M in FY27 and diminishing amounts thereafter, the budget proposes decoupling the state’s tax code from the federal government regarding changes to the research and development tax provisions.
- Section 6 – Million Dollar Tax Bracket; Social Security Tax Phase Out
- For the 2027 tax year and beyond, the budget proposes a 3% increase to a new top tax bracket, from 5.99% to 8.99%, for income above $1M, which is estimated to generate $67.1M in FY27, and $135.5M in FY28 when fully implemented.
- The budget also proposes phasing out the state tax on Social Security, by eliminating the age threshold in 2027, and phasing out the income thresholds over tax years 2028 and 2029. Eliminating the tax in this manner projects to cost $3M in FY27, and reach $60.1M in FY30, the first full fiscal year after the phase-out is fully implemented in tax year 2029.
This will be an important hearing. If these provisions impact you as an individual, or as the owner of a pass-through entity, the Chamber encourages you to attend the hearing and testify, or to submit written testimony at: HouseFinance@rilegislature.gov
Also on Tuesday at the Rise in the House Lounge, the House Corporations Committee will be taking testimony on a few bills that may be of interest to Chamber Members. Testimony regarding these matters can be submitted to: HouseCorporations@rilegislature.gov.
No Swipe Fees on Taxes or Gratuities
H 7607 would prohibit the charging of interchange fees, also known as “swipe fees”, on the portions of a credit card transactions related to taxes and gratuities. This is being promoted by hospitality businesses and local merchants, and is similar to legislation adopted in Illinois that recently withstood legal challenge.
Grocery Store Sales Practices
Spearheaded by Lt. Governor Sabina Matos, two bills impacting business activity at grocery stores will be heard by the Committee. H 7514 would prohibit covered suppliers from offering different terms of sale to covered retailers and wholesalers for the same goods. H 7719 would require retailers offering food product discounts through digital coupons to also provide them to in-store customers.
Wednesday, March 4th
Extreme Temperatures; Employment Records; Bullying; Warehouse Workers
On Wednesday at 4pm in Room 313, the Senate Labor & Gaming Committee will convene for hearings on a few bills impacting employment protocols. Testimony regarding these matters can be submitted to: SenateLegislation@rilegislature.gov.
S 2320 requires employers to conduct training and implement plans to prevent and reduce exposure of employees to temperatures above 90 degrees or at or below 32 degrees. Plans should include paid breaks, access to warming/cooling stations, and the use of personal protective equipment.
S 2498 expands the obligations of employers to create, maintain and retain employment records for 3 years post termination.
S 2502 exposes employers to liability for workplace bullying. This legislation establishes an obligation on employers to create a work environment free from what “a reasonable person would consider threatening, hostile, or abusive and that unreasonably interferes with the target’s ability to perform job duties. Conduct may include false accusations, sabotage of work performance, consistent ignoring or ostracism, removal of major responsibilities, consistent unreasonable workloads, excessive monitoring…persistent hypercriticism, impossible deadlines…” These words can mean different things to different people, leaving everyone wondering what they can and cannot do or say in the workplace. S.2502 is not identical to H.7121 which also addresses psychological bullying in the workplace.
S 2504 requires employers to provide each employee of a warehouse distribution center, upon hire, with written description of quotas applicable to the employee within defined time periods; and also requires employers to provide information concerning adverse employment actions that an employee might face for failure to meet the quota.
Thursday, March 5th
Modifications to TDI/TCI, UI, and Maternity Leave; New Employer Tax
On Thursday, the House Labor Committee will meet at the Rise in the House Lounge regarding various proposals modifying benefits under TDI/TCI, Unemployment Insurance, maternity leave, and imposing a new employer tax to fund a catastrophic illness relief fund for children. Testimony regarding these matters can be submitted to: HouseLabor@rilegislature.gov.
H 7968 would expand temporary care giver leave to include a grandchild and care recipient (defined as a person for whom the employee is responsible for providing or arranging health or safety related care), increases the benefit period from 8 weeks to 10 weeks for 2027 and 12 weeks for 2028 and provides a TDI/TCI opt-in option for self-employed workers.
H 7962 would eliminate the 6/30/26 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. The earnings increase was originally established during the COVID pandemic to address the limited job market.
H 7440 would allow unemployment benefits for workers who are on strike or are locked out of their workplaces by their employer due to a labor dispute. Strikes and lockouts are part of the labor negotiation process, often arising from disagreements over wages, working conditions, or other terms of employment. These actions are typically voluntary on the part of the employees and should not be viewed as a situation of involuntary unemployment.
H 7561 would prohibit employers from requiring employees to use sick, vacation, or personal leave, or other paid time off as a condition of maternity leave. The bill also allows employees to voluntarily choose to use accrued leave concurrently with TDI benefits.
H 7965 would establish a fund to aid families of children with serious illnesses by paying medical expenses not covered by state or federal programs or insurance. Monies for the fund are raised through a $1.50 per employee tax on businesses.
New Introductions
The House and Senate introduced 506 bills last Friday. This edition of Advocacy in Action includes a portion of the bills of interest to the business community. The remainder will be included in next week’s edition.
Senate Bill No. 2638 BY Gu, Zurier, Urso, DiPalma, Paolino, Vargas, Burke
Amends the Identity Theft Protection Act by eliminating current definitions and establishing new definitions. This act also raises the penalty provisions for violations.
Senate Bill No. 2642 (Lieutenant Governor) BY Britto, Gu, DiMario, McKenney, Zurier, Bissaillon, Urso
Creates a new chapter to protect Rhode Island consumers from coercive tactics at grocery stores.
Senate Bill No. 2643 (Lieutenant Governor) BY Gu, Britto, Tikoian, Kallman
Provides that stores offering food product discounts must provide the same discounts to in-store customers that are offered to customers using electronic digital coupons.
Senate Bill No. 2644 (Lieutenant Governor) BY Murray, Thompson
Prohibits restrictive covenants related to grocery stores.
Senate Bill No. 2647 BY Appollonio
Establishes the commercial kitchen exhaust system inspection and cleaning licensing and certification act. It also requires entities inspecting or cleaning commercial exhaust systems be licensed and insured.
Senate Bill No. 2662 BY DiMario, Lauria, Gallo, Valverde, Mack, Murray, Kallman
Allows Rhode Island employers can help pay employees’ student loans in high-need fields if they work full-time for 2 years in undeserved areas and are in an income driven repayment plan. RISLA must provide annual reporting.
Senate Bill No. 2664 BY Britto, Dimitri, DiMario, Zurier, Bissaillon, Urso
Removes the requirement that 5% of the hotel tax generated from the South County tourism district be paid to the Greater Providence-Warwick Convention and Visitors Bureau.
Senate Bill No. 2665 BY Dimitri, LaMountain, Raptakis, Thompson, Famiglietti, Paolino, de la Cruz, Rogers, Morgan
Requires agencies preparing economic impact statements for small businesses contain findings that the anticipated compliance costs of a proposed rule scale proportionally with the business size, and do not impose fixed costs that favor larger businesses.
Senate Bill No. 2672 BY de la Cruz, Rogers, Dimitri, Thompson, Patalano, Famiglietti, Burke
Establishes phased reduction of personal income tax rates.
Senate Bill No. 2684 BY Burke, Bissaillon, Thompson, Famiglietti, Patalano, Raptakis
Exempts from sales tax the amount paid for a parking space to a patron for one hour or less, in or on a parking facility on which a commercial establishment is located.
Senate Bill No. 2709 BY Raptakis, Burke, de la Cruz, Bell, Ciccone, Famiglietti, Appollonio, Dimitri, Rogers, Thompson
Requires nonprofit entities who receive grants or other funding, to provide a detailed list of their ten highest paid directors, officers or employees’ salaries and benefits, including the names of said individuals.
House Bill No. 7844 BY Casey
Requires businesses that conduct business to register and maintain required filings with the secretary of state so that consumers and small businesses may readily identify responsible parties, verify good standing, and effectuate service of process.
House Bill No. 7849 BY Marszalkowski
Creates the surveillance pricing and online retailing act that would prohibit algorithmic price increases for online purchases.
House Bill No. 7880 BY Slater, Kislak, Stewart, Ajello, Handy, Cruz
Creates an income-sensitive tiered subsidy program to ensure that home energy utility costs are affordable for eligible low-income households.
House Bill No. 7882 BY Casey, Phillips, Brien
Requires any public utility company that needs to close any state or municipal roadway for work to provide notice to all residential and business property owners located within 1,000 ft of the closed highway at least 48 hrs before the road closure.
House Bill No. 7884 BY Handy, McGaw, Stewart, Tanzi, Hull, Edwards, Caldwell, Cruz, Potter, Furtado
Establishes federal back stop language for any provisions of federal law relating to any of the energy or water conservation standards issued or approved for publication by the office of the United States Secretary of Energy as of January 19, 2025.
House Bill No. 7888 BY Cotter, Kazarian, Potter, Tanzi, McGaw, Morales, Stewart, Handy, Casimiro, Cruz
Provides that effective July 1, 2026, the profit margin of any electric distribution company or distributor of natural gas, would not exceed four percent (4%), in any given calendar year.
House Resolution No. 7891 BY Cortvriend, McGaw, Kazarian, Spears, Boylan
HOUSE RESOLUTION REQUESTING THE RHODE ISLAND PUBLIC UTILITIES COMMISSION TO TERMINATE GAS LINE EXTENSION ALLOWANCES AS PART OF DOCKET 25-45-GE
House Bill No. 7910 BY Bennett, McEntee, Speakman, McNamara, Handy, Hull, Carson, Shallcross Smith, Casimiro, Diaz
Creates the extended producer responsibility for packaging and paper program for the recycling of packaging and paper products.
House Bill No. 7911 BY McEntee, Spears, Bennett, Knight, Boylan, Caldwell, Carson, Handy, Speakman, Donovan
Creates multiple chapters to provide and establish a comprehensive program for extended producer responsibility for packaging and paper, and for recycling of beverage containers.
House Bill No. 7959 BY Giraldo, Alzate, Cruz, Morales
Requires the employer, at the time of hiring, to furnish to their employees an itemized list of the terms and conditions of the employment and mandates that each payday a pay stub explaining how their wages were calculated is provided.