Legislative Updates

Final 2026 Legislative Wrap-up, Or Is It?

In this, hopefully the last 2026 edition of Advocacy in Action, we provide you with a list of bills that have become law in 2026, along with the effective dates of the new laws.  The legislature finished its work June 11, 2026.  Since then, the General Assembly has transmitted bills to the Governor for his consideration.  That process was completed last week.  In the event a special session is called to order to address judgeships or veto overrides, all legislation that has not passed. to date, is technically alive and can be addressed. Past legislatures have limited voting to the issue or issues causing the General Assembly to reconvene, but it is not a rule.

Your Chamber was very engaged: reviewing over 3000 bills, actively tracking just over 250 pieces of legislation, and providing testimony on many of them verbally or in writing.

This year is an election year.  If you want to be at the table instead of “on the menu,” we encourage you to vote – especially in the primary September 9, 2026.  Many elections are determined in the primary, so please make it a priority to vote in September! Early voting takes place August 20 – September 8, 2026.

Thank you for reading this publication each week.  We will see you at the next Chamber event!

 

New Laws Passed During the 2026 Legislative Session

 

General Business Issues:

Business Identity Theft – H.8060 SubA/S.3338 – Public Law Numbers have not yet been assigned - address emerging identity threats such as those who knowingly engage in entity impersonation and the use of artificial intelligence–driven “deepfakes” to perpetrate fraud.  The law specifically addresses the illegal use of a logo, trademark, or other mark used to identify an entity.  The law took effect upon passage. https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8060A.pdf

 

AI Companion Models – H.7350 SubAaa/S.2195 SubAaa – Public Law Chapters have not yet been assigned – make it unlawful for any operator to operate or provide an AI companion to a user unless the AI companion contains a protocol for addressing: (1) Possible suicidal ideation or self-harm expressed by a user to the AI companion; (2) Possible physical harm to others expressed by a user to the AI companion; and (3) When any of those expressions are made, a notification shall be provided to the user that refers them to crisis service providers such as a suicide hotline, crisis text line, or other appropriate crisis services as soon as any of those expressions are detected. Beginning July 1, 2027, operators must file annual reports with the office of the attorney general noting the number of safety protocol activations and related metrics. The attorney general is required to publish aggregated data on its website.  Violations are subject to a $15,000 per day fine.  The new law takes effect January 1, 2027.  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2195Aaa.pdf

 

Secure Choice Retirement Program – H.7475/S.3086 – Public Law Chapters have not yet been assigned – make several technical amendments to the Rhode Island secure choice retirement savings program act necessary for continued administration and inter-state partnership.  The law took effect upon passage.  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S3086.pdf

 

Labor Issues:

Unemployment Compensation Partial Benefits – H.7962 SubA/S.2929 SubA – Public Law Chapters 240 and 241 – extend the current partial unemployment benefit program for three more years to June 30, 2029.  During the COVID-19 pandemic, the General Assembly and Governor increased the total amount of earnings a partial-unemployment insurance claimant could receive before being entirely disqualified for unemployment insurance benefits and increased the amount of earnings disregarded when calculating a weekly benefit rate.  At the time, it was deemed necessary because jobs were hard to find as many places were forcibly closed by the state.  The law was about to sunset June 30, 2026.  The link to the Public Law is not yet available.  The final version of the bill can be viewed at:  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7962A.pdf

 

Department of Labor and Training Hearing Timeline – H.7960aa/S.3049aa – Public Law Chapters have not yet been assigned – change the timeline for DLT to respond to Payment of Wages complaints.  Under the new law, DLT has up to 120 days to schedule a hearing instead of 30 days and an additional 120 days to render a decision.  The law also eliminated hearing and determination timelines for DLT in cases of underpayments.  The new law is now in effect.  The language can be found at: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7960aa.pdf

 

Expungement of Criminal Records – H.7079 SubA/S.3036 SubA – Public Law Chapters have not yet been assigned - permits individuals convicted of multiple felonies and misdemeanors to have their records expunged and provide criteria for the court to consider in determining whether the person is of good character.  The new law was effective upon passage.  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7079A.pdf

 

Energy and Environment Issues:

Gas Line Termination Resolution – Senate Resolution 2354 - Public Resolution 404 - requests the Rhode Island Public Utilities Commission to examine the impacts and continued use of gas line extension allowances as part of Docket 25-45-GE and determine whether changes to such allowances are advisable. The resolution cites the Executive Climate Change Coordinating Council’s 2025 Climate Action Strategy as the driving force for this action.  The EC4’s Strategy calls for a reduction in the use of gas for home heating in order to meet the State's 2030, 2040, and 2050 emissions reduction requirements.  The resolution states, “Connecting new customers to the gas distribution system locks in customer subsidization of new infrastructure whose intended life extends beyond the 2050 net zero emissions requirements.”  While resolutions do not carry the weight of law, they are meant to express a legislative body’s official opinion.  They do not require the Governor’s signature.  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2354.pdf

 

 

Taxation Issues:

 

State Budget – H.7127 SubAaa – Public Law Chapter 084 – was signed by the Governor June 12, 2026.  The Chamber has reported extensively on this legislation.  The 393-page document included:

 

• Millionaire Tax:  New personal income tax on individuals, pass-through-entities and bankruptcy estates making more than $1 million (to be adjusted by inflation annually).  The Committee proposal phases in the new tax at 1% (6.99%) starting tax year January 1, 2027; 2% (7.99%) starting January, 1, 2028 and 3% (8.99%) starting January 1, 2029.  The new tax is estimated to raise $21.6 million in the first phase of the tax.

 

• Corporate Tax Decoupling: A decoupling from the Qualified Business Stock Gains and the business interest limitation that was included in HR1.  This is estimated to raise $1 million in revenues.

 

• Tax Amnesty Program: A 75-day amnesty period ending February 15, 2027.  The Division of Taxation is barred from collecting any penalties that may be applicable and cannot seek civil or criminal prosecution of any taxpayer for which amnesty has been granted.  Interest due on the delinquent tax amount will also be reduced by 25%.  The provision does require amounts collected to be accounted for separately in order to determine the “success” of the program.

 

Waiver of Interest on Overdue Taxes – H.7568/S.2543 – Public Law Chapters 161 and 162 - allow municipalities to waive up to $500 in interest on overdue taxes for commercial properties.  Since 2003, cities and towns have had the authority to waive interest on residential properties.  The new law adds commercial properties that fall into the same category: (1) The property subject to the overdue payment is the property of the taxpayer and has been for the five (5) years immediately preceding the tax payment which is overdue; (2) The request for a waiver of interest is in writing, signed and dated by the taxpayer; and (3) The taxpayer has made timely payments of taxes to the city or town for the five (5) years immediately preceding the tax payment, which is overdue.  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7568.pdf

 

 

Industry Specific Issues:

 

Retirement License for Building Trades – H.7146aa/S.3138 – Public Law Chapters 058 and 059 – allow any person currently holding a license issued or overseen by the division of professional regulation, who has attained the age of sixty-five, may renew their license as a retirement status license.  The licensee cannot practice the trade, but retains the identity as a member of the trade.  The special license carries a fee of $20.00.  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7146aa.pdf

 

Grocery Store Restrictive Covenants – H.8106/S.2644 – Public Law Chapters 125 and 126 - These bills were introduced at the request of Lt. Governor Matos.  The new law, now in effect, bans the use of restrictive deed covenants for a retail establishment “where fresh food is regularly and customarily sold in a bona fide manner for off-premises consumption.” The language includes an exception if the land was used by the seller 6 months prior to the date of agreement, the existing business is relocating within one year to a site within one-half mile away, and the deed restriction is for a period of 18 months or less.  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2644.pdf

 

Self-Checkout Stations – H.7290 SubA/S.2342 SubB – Public Law Chapters 127 and 128 - require grocery stores with self-checkout stations to maintain one manual check out station for every three self-checkout lanes in operation.  It also requires the store to have in operation one manual station that complies with requirements of the Americans with Disabilities Act.  Any employee assigned to oversee the self-checkout lanes must be relieved of all other duties during the assignment.  The law does allow for relief of the requirements during “off-peak” hours (before 8am and after 8pm) as well as during declared state of emergencies or several weather alerts.  The law, which takes effect January 1, 2027, can be viewed at: https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2342B.pdf

 

Warehouse Distribution Centers - H.7364 SubA/S.2504 SubA – Public Law Chapters 112 and 113 – require employers to notify employees two days in advance of any modifications made to quotas – no timeline was in the original bill.  The new law gives employers 21 days to respond to an employee’s request for personal speed data information and states that an employee may only ask for such information once in a 90-day period, unless a disciplinary action is pending.  https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/H7364A.pdf

 

 

Bills Vetoed by Governor McKee:

 

Building Energy Benchmarking - H.7183/S.2260 – Governor McKee vetoed the passage of H.7183 and S.2260, the Building Benchmarking and Reporting Act of 2026, designed to facilitate an energy reporting requirement for residential, commercial and industrial buildings with twenty-five thousand gross square feet or more.  If the legislature decides to override the Governor’s veto, businesses would be required to provide the following information to the Office of Energy Resources (OER):  property address, primary use, gross floor area, annual energy use, source of energy use, annual greenhouse gas emissions, and a statement of compliance or noncompliance with the statute.  Buildings with 50,000 sq ft or more would begin reporting May 15, 2028.  Building between 25,000 – 49.999 sq. ft. would begin reporting May 15, 2030.  Exemptions are available for vacant buildings, buildings possessing a demolition permit and buildings with no energy services provided.  The bill language requires OER to collect the data and to post building specific information on its website, as well as “Progress against baseline year data for intervening years for both energy use and greenhouse gas emissions.”  The bills, under the enforcement provision, allow OER to withhold grants and Infrastructure Bank monies from buildings that fail to comply with reporting requirements or “decarbonization efforts.”  No other sections of the bill provide OER with the ability to implement decarbonization requirements based on the results of the benchmarking reports.  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7183.pdf

https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2260.pdf

 

 

Bills of Interest That Did Not Pass:

 

Chamber’s Arbitration Law Fix – S.2396/H.7645 - In 2024, arbitration legislation was passed at the end of session.  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, the 2024 bills, now law, make it easier to avoid arbitration and therefore force a court system solution to certain disputes.  The Chamber filed legislation to change the law in three ways: (1) change the treatment of agreements that contain a penalty for hiring a lawyer by making that provision null and void (current law renders the entire agreement null and void); (2) give businesses 180 days to respond to a notice to arbitrate instead of the short 30-day timeframe in law; (3) allow businesses a 15-day right to cure a late payment to the arbiter (current law allows the other party to remove the complaint to court if payment is one day late).  The Chamber worked with sponsors and leadership to find compromise language, and will try again in 2027.

Workplace Psychological Safety Act - H.8505/S.2502.  These bills are often referred to as “the bullying bills.” The bills hold employers responsible for failure to respond and eliminate “psychological abuse” in the workplace.  The definition of "workplace bullying" includes “unwelcome, degrading, and dehumanizing conduct, that is severe or pervasive enough to create a work environment that 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, consistent micromanagement, persistent hypercriticism, impossible deadlines…” Employers with fifteen or more employees would have been required to: implement varying response timelines based on perceived urgency, conduct formal fact-finding investigations, issue written findings, undertake disciplinary processes, maintain detailed complaint records, develop and distribute anti-bullying policies and provide training to all employees, including independent contractors.  The Senate bill passed the Senate but remained in the House Labor Committee.  https://webserver.rilegislature.gov/BillText/BillText26/SenateText26/S2502.pdf

Card Check for Unionizing – S.2924/H.7291.  These bills would have allowed unions to become the representative of employees of a company by asking employees to sign a card asking for representation and waiving a right to a vote.  Unionizing by signing authorization cards—often called "card check"—is a method that bypasses the secret-ballot election process. Unlike a secret-ballot election where an employee votes alone, card signing happens in public.  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7291.pdf

 

Minimum Wage Bills – no minimum wage increase bills passed this year; however, Rhode Island has one additional increase in law to take effect January 1, 2027.  The rate will go to $17 per hour at that time.

 

Rent Control – H.8108. This bill would have Limited rent increases to 4% annually, but allowed an additional increase for taxes, insurance, or health and safety costs if the landlord gets an exemption from the secretary of housing, and provides tenants civil remedies for violations.  https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H8108.pdf

 

Temporary Caregiver Expansion – S.2737 SubA/H.7968.  The Senate passed S.2737 SubA but remained in the House Labor Committee.  The bill would have expanded 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), and increased the benefit period from 8 weeks to 10 weeks for 2027 and 12 weeks for 2028. The substitute A removed the opt-in for TDI/TCI for self-employed workers but required DLT to study how to implement such a program. https://webserver.rilegislature.gov/BillText/BillText26/Proposed26/S2737A.pdf