Legislative Updates
This Week at the State House
Monday, March 30th
At 4pm today in the House Lounge, the House Labor Committee will conduct hearings of concern to the Chamber. To submit testimony on these bills, please email: HouseLabor@rilegislature.gov.
Employee Ownership Opportunity
H 7964 would create the Rhode Island Opportunity for Employee Ownership Act, requiring a right-of-first opportunity for employees to purchase qualified businesses when it is being sold or transferred. It would apply to privately held, non-publicly traded, businesses operating in Rhode island for at least one year with at least three employees and meeting certain Small Business Administration industry size standards. However, it would exempt businesses being sold or transferred to a family member, due to medical necessity or death, compelled by court order, or necessitated by emergency circumstance or natural disaster. To sell or transfer a qualifying businesses the owner must provide notice to employees of the intent to sell the business and give a 30 day period for employees to organize and initiate a potential purchase effort including by forming a worker cooperative.
The legislation injects procedural delays and uncertainty for potential purchasers that reduce owner’s valuation and jeopardizes transactions, undermines confidentiality in a manner that could expose strategic decisions to competitors, and can disrupt operations, morale, and create employee anxiety and turnover.
https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7964.pdf
Extreme Temperatures
The committee will also hear legislation imposing new standards on employers for the protections of workers when temperatures fall below 32 degrees and rise above 90 degrees.
H 8311 amends the state’s Occupational health laws to require employers to implement plans that prevent and reduce exposure of employees to extreme temperatures, including paid rest breaks, adequate shade, working/cooling stations, drinking water, and personal protective equipment, and for quarterly training of supervisors on temperature related risks. Additional requirements are also required to be established for vehicle drivers, warehouse workers, and those working construction, farming, recreation and other outdoor venues.
https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8311.pdf
H 7966 creates the Extreme Temperature Worker Protection Act, includes many of the provisions in H 8311, with additional regulatory requirements and compliance protocols, including written safety plans and recordkeeping obligations.
https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7966.pdf
Tuesday, March 31st
NRICC’s Arbitration Facilitation Bill
On Tuesday at the Rise in Room 313, the Senate Judiciary Committee conduct a hearing on legislation introduced at the request of the Northern RI Chamber of Commerce. S 2396 seeks to amend a 2024 law that creates obstacles for businesses seeking to use arbitration agreements as a means to settle disputes. The current 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 a 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, or 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 an arbitration agreement contains a provision that deters a party from hiring a lawyer, the entire arbitration 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.
- 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.
- Changes the deadline for payment to the arbiter. This bill allows the business to cure a default of payment within 15 days after the it receives a notice of default.
https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2396.pdf
The Chamber is asking for your help. Please consider sending testimony in favor of S 2396 to the Senate Judiciary Committee at: SenateJudiciary@rilegislature.gov.
Identity Theft Protection, Data Deletion
Also on Tuesday, the Senate Artificial Intelligence and Emerging Technology Committee will meet at 3pm in Room 212. Testimony on these matters can be sent to: SLegislation@rilegislature.gov.
S 2638 would amend the Identify Theft Protection Act of 2015 to amend definitions impacting the scope of regulated data that could include routine business records and digital identifiers, which would increase compliance burdens. It would also require any entity that stores or processes personally identifiable information to implement and maintain “risk-based information security program” that aligns with an “approved and industry recognized cybersecurity framework” without guidance regarding what satisfies such requirement, potentially exposing good faith compliance efforts to liability.
https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2638.pdf
S 2766 would create the Rhode Island Delete Act, requiring data brokers that collect, share or sell to third parties the personal data of consumers with whom they do not have a direct relationship to register with the department of business regulation. It would provide consumers to request the deletion of their personal information through a mechanism to be established by DBR.
https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2766.pdf
Thursday, April 2nd
The House Corporations Committee will meet at the Rise in the House Lounge. Testimony can be submitted on the bills below by emailing: HouseCorporations@rilegislature.gov.
Vehicle Barriers
H 7179 would require the installation of vehicle barrier safety devices at retail establishments, including restaurants as part of any new construction, while ensuring sufficient space for wheelchair access and ADA compliance. The bill suggests insurers may consider offering premium discounts, but there is no guarantee that such savings would offset the installation and engineering costs associated with these barriers.
https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7179.pdf
Escrow Gift Card Funds
H 8264 would requires retailers to put money received for gift certificates into a separate account until the certificates are redeemed, at which point funds can be transferred into the retailer’s business account. It would exempt gift certificates given without exchange for value.
https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8264.pdf
New Introductions
Senate Bill No. 3154 BY Kallman, Lauria, Valverde, Ujifusa, DiMario, Mack, Vargas, Britto, Sosnowski
AN ACT RELATING TO TAXATION -- WEALTH PROCEEDS TAX (Imposes a tax equal to four percent (4%) on net investment income, such as interest, dividends, annuities, royalties, capital gains and rental income, of high-income households, estates and trusts, based upon federal guidelines.)
https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3154.pdf