Legislative Updates
Advocacy in Action
April 27, 2026
This Week at the State House
Tuesday, April 28th
Business Identify Theft and Deceptive Solicitations
The Senate Commerce Committee will meet at the Rise (~5pm) in Room 212 for a hearing on S 3212, and the House Corporations Committee will meet at the Rise in Room 101 for a hearing on H 8324, which were introduced on behalf of Rhode Island Secretary of State Gregg Amore for the purpose of strengthening protections against businesses identify theft, fraudulent business filings, and deceptive solicitations. It aims to stop scams that impersonate legitimate businesses, create fake companies using someone else’s identity, and sending misleading notices that appear to be official government communications.
Testimony for S3212 can be emailed to: slegislation@rilegislature.gov.
https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3212.pdf
Testimony for H8324 can be sent to: HouseCorporations@rilegislature.gov.
https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8324.pdf
Wednesday, April 29th
World Cup Extended Service Hours
The House Municipal Government and Housing Committee is scheduled to meet at 4pm in the House Lounge and vote on H 8009 Sub A, legislation to enable extended service hours to provide public watch opportunities for certain late night FIFA World Cup Tournament matches. Under the revised proposal, restaurants could apply with two weeks notice to their local licensing authority to extend indoor operating hours up to 4am and liquor service hours to up to 3am on designated evenings with late night World Cup matches. The eligible periods are for the following dates and continue to the early morning hours of the succeeding day: June 11, 13, 14, 16, 17, 19, 20, 22, 23, 25, 26, and 27; and July 2 and 3.
https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/H8009A.pdf
The companion legislation is also scheduled for hearing before the Seante Special Legislation Committee at 430pm on Wednesday in room 211.
Testimony can be emailed to: slegislation@rilegislature.gov.
https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/S2627A.pdf
Caterers Liquor Licenses
The Senate Special Legislation Committee will also hear S 2508, which would allow holders of a Class P licenses to ability to also purchase alcoholic beverages at wholesale, as well as permit serving an event host’s alcohol at their residence. Under current licensure, caterers must purchase alcohol at class A retail liquor stores. Providing the ability to purchase at wholesale creates parity for caterers within the competitive hospitality landscape for event businesses.
Testimony can be emailed to: slegislation@rilegislature.gov.
https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2508.pdf
Employee Ownership
Included on the Senate Labor Committee meeting agenda for 4pm in Room 212 are two bills relative to employee ownership. Testimony can be emailed to: slegislation@rilegislature.gov.
S.2922 creates the Center for Employee Ownership under the purview the State’s Business Development Center. The mission of the Center is to create a network of technical support and service providers for businesses considering employee-owned business models. While many business owners approach retirement with a clear succession plan, others have not considered what comes next. This bill provides an option by offering guidance on the legal, financial, and operational considerations involved in employee ownership conversions. At the same time, the Center could empower employees by providing support in developing business plans, understanding financing, and perhaps even preparing purchase proposals. Establishing this Center would not only help retain local businesses and jobs, but also strengthen Rhode Island’s economy by promoting stable, locally rooted enterprises.
S.2744 requires a majority of businesses in Rhode Island to give all full-time and part-time employees thirty-days-notice of an intent to sell the business. This requirement applies to every business employing between three and five hundred employees that is privately held and not a publicly traded company. It also exempts businesses being sold to family members, sold due to a death or medical condition or compelled by a court order. Once the notice is given, the employees have thirty days “to officially initiate a process to potentially purchase the business.” After this date, the owner has the right to “share the intent to sell publicly.” It is unclear if the owner can proceed to sell the property to another party following the thirty-day notice period. It is also not clear what happens if the employees initiate a process to potentially purchase the business. If an offer to purchase is not put forth, can the business be sold to someone else, or is the owner allowed to entertain offers from other potential buyers but not move forward until an employee actual offer is made? This process is unfair to the business owner who has worked to build a business. The business is a person’s asset and a state requirement to hold the asset for thirty days, perhaps longer, and dictate who receives initial rights to purchase that asset could deter other potential buyers from coming forward. Who wants to put time and effort into evaluating a business if another buyer gets basically a first right of refusal?
Thursday, April 30th
The Senate Finance Committee will convene hearings at the Rise in Room 211 on multiple proposals seeking to modify how Rhode Islanders are taxed by the state.
Testimony on these proposals can be emailed to: SenateFinance@rilegislature.gov.
Income Tax
H 7127, Article 5, Sections 2 and 6, proposes to create a three percent tax surcharge for persons with taxable income over $1 million, taking our State’s highest income tax rate of 5.99 percent to 8.99 percent – a fifty percent increase. https://webserver.rilegislature.gov/BillText26/HouseText26/Article-005.pdf#page=2
S 2238 would create a three percent tax surcharge for persons with taxable income over $640,000. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2238.pdf
These proposals would place Rhode Island’s topmost income tax rate at 8th highest in the country (9th including Washington DC). Many of the “individuals” affected by this tax increase proposal are small businesses. They are referred to as “pass-through” entities that include the income and expenses associated with their businesses on their personal income tax statements. The Chamber is very concerned that the passage of budget proposal or S 2238 will stifle economic development of businesses and encourage those who can, to move to a lower cost state, especially as Rhode Island continues to struggle with high energy costs and higher property tax levies.
Estate Tax
S 2251 would eliminate the estate tax in Rhode Island. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2251.pdf
S 2019 would phase out the estate tax in Rhode Island by 2033. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2019.pdf
Rhode Island maintains a transfer tax on the value of a decedent’s estate, including real property and interest in certain securities located in Rhode Island, before distribution to any beneficiary. It is among the 12 states and the District of Columbia that impose such a tax. For decedents dying on or after 1/1/2026 in Rhode Island the gross estate threshold is $1,838,056, prior to any deductions in value for such items as mortgages, debts, and claims, with a rate from 0.8%-16%, which is near the lowest exemption level of states with an estate tax. As a comparison, Connecticut imposes a 12% tax that conforms to the federal threshold which was increased to $15 million for 2026 by the One Big Beautiful Bill Act. The estate tax disincentivize investment in Rhode Island. Aligning it to the federal estate tax exemption or eliminating it altogether would encourage wealthy individuals and their assets to stay in in Rhode Island.
Wealth Tax
S 2361 proposes an annual one percent (1%) tax on world wide wealth for both individuals and businesses in excess of $25 million. A state-level wealth tax—especially one that attempts to reach assets held around the world—is fraught with legal, economic, and administrative problems. It risks driving away investment, punishing entrepreneurship, and placing Rhode Island at a severe competitive disadvantage relative to other states. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2361.pdf
S 3154 proposes an annual 4% tax on investment income—covering interest, dividends, capital gains, rental income, and other forms of “wealth proceeds.” This action would place Rhode Island at a competitive disadvantage relative to neighboring states. Many small business owners rely on investment income as part of their overall financial structure, including retirement planning, reinvestment into their companies, and capital formation. By imposing an additional layer of taxation on these earnings, the state risks discouraging both in-state investment and the attraction of new capital.
The Chamber believes this bill could disproportionately impact closely held and family-owned businesses. These businesses often depend on retained earnings, asset sales, or rental income tied to business operations. Taxing these proceeds at a higher rate could reduce the resources available for expansion, hiring, wage growth, and innovation. The complexity of the proposed tax creates administrative burdens for taxpayers and compliance challenges that may require additional state resources to enforce. Simplicity and predictability in the tax code are essential to fostering a business-friendly environment. http://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3154.pdf