UNDER THE DOME - Central Rhode Island Chamber of Commerce

UNDER THE DOME News from the Rhode Island State House

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As you are probably aware, Under the Dome is a government affairs update brought to you during the Rhode Island General Assembly session by the Chamber of Commerce Coalition to distribute as you see fit to your membership. The Chamber Coalition will bring you legislative and administration items of interest including legislation that has been introduced, legislative committee hearings, budget reports, regulatory issues and more. If you have any questions or concerns, please feel free to contact me. Thank you and enjoy. Dave David R. Carlin III

Vice President of Government Affairs Northern Rhode Island Chamber of Commerce Coordinator ‐ RI Chamber of Commerce Coalition [email protected] 401‐334‐1000 x 107

www.rhodeislandbusinessvotes.com

A Legislative Update from Your Chamber of Commerce Coalition “What’s happening at the RI State House” 

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Hearings in both the House and Senate Finance Committees regarding Governor Chafee’s proposed budget are underway. Your Chamber of Commerce Coalition has been tracking each article and has offered testimony as needed. As with each year, the articles that are of most interest to the Chamber Coalition and the business community involve tax proposals. (Reducing the corporate tax rate, eliminating the Enterprise Zone Tax Credit, reducing the Jobs Development Act Tax Credit, etc.) However, the Senate Finance Committee has already held a hearing on the budget proposal to restore –in a limited way‐ the historic preservation tax credits. The Chamber Coalition is supportive of the concept but has concerns regarding some built in apprenticeship requirements. Once again in 2013 the Chamber Coalition is opposing legislation (duplicate on the House and Senate sides) that would prohibit an employer from inquiring as to a job applicant’s criminal record. In this legislation specifically, a felony. The so‐called “ban the box” legislation, as proposed, would make it illegal for an employer to ask on a job application or in an interview if the candidate has any felony conviction that is not allowed by law to be expunged. Many lines of business use the criminal background check as a means to determine if a candidate for a job is suitable to handle the position. (Banks, retail operations, day/child care service providers, etc.) There are federal laws that require such criminal background checks. Not only is that a concern but there is a further concern about safety and potential employer liability. Binding arbitration for teachers in financial matters has become a front and center issue for the legislature anew, and the Chamber Coalition is providing strong opposition to the legislation. This issue was not a big topic in the 2012 General Assembly session; perhaps because of the election year. A bill did however, pass the

Senate in 2011. The Senate passed legislation never made it out of the House Labor Committee that year. The bill has the support of both the NEA and the AFT and has

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considerable support in both houses of the legislature. The only bill that has received a hearing so far has been the House bill. The opposition has also been very strong this year. This is an issue that could potentially cost our municipalities millions of dollars if passed. It is overwhelmingly opposed by local authorities including many cities and towns by way of council resolutions. The Chamber Coalition is very closely monitoring two issues of concern involving the Department of Labor and Training. One is a piece of legislation that we opposed on the House side and that will be heard on the Senate side that would require an increase in the minimum wage next January 1st to $8.25 per hour (even though it was just raised to $7.75 per hour this past January 1st) and require that the wage be increased automatically each year based on a cost of living index that DLT would produce annually. The second item is the proper funding of the state’s unemployment insurance fun run by DLT and the “pay‐off” of our federal loan obligation for money the state borrowed from the federal government to help pay for RI unemployment insurance claims in the past five years. (See more below as part of a summary of Article 14 of the proposed state budget) As of 2012, when a state has an outstanding loan balance due to the federal government for money the state borrowed to help pay unemployment insurance claims, penalties are charged to the employer community (.06% of payroll up to $7,00 of each employee) until the state pays the loan balance off.

Below is a link to Article 14 of the proposed state budget. This is an article that authorizes a diversion of workforce development funds to other –non workforce development/workforce training‐ areas of state government. The House Finance Committee held a lively hearing on this article Wednesday afternoon. Your Chamber of Commerce Coalition was on record with our opposition to the proposal and our concerns. Namely, that workforce development dollars (which are paid for by an employer tax) should be used for workforce development/workforce training purposes and not other purposes. Employers who pay the tax expect that and have every right to. As the Chamber Coalition’s legislative agenda says: The Chamber Coalition supports measures designed to provide for a competent, well‐ trained workforce while guaranteeing employer’s rights to conduct business in a manner consistent with free market principles. The Chamber Coalition supports workforce‐training initiatives and opposes use of employer contributed workforce development dollars to non‐workforce training uses.

ARTICLE 14 RELATING TO EMPLOYMENT SECURITY JOB DEVELOPMENT FUND ASSESSMENT When you access the link below, note that the new language as proposed in the article is in blue. (We have copied it below the link and highlighted some of the concerning parts of that language.) Any language in black is existing state law. http://webserver.rilin.state.ri.us/BillText13/HouseText13/Article‐014.pdf (Link to Article 14) (ii) Beginning January 1, 2014, twenty five hundredths of one percent (0.25%), out of the forty six hundredths of one percent (0.46%) job development assessment paid pursuant to section 28‐43.8.5, shall be deposited into a restricted receipt account to be used solely to pay the principal and/or interest due on title XII advances received from the federal government in accordance with the provisions of section 1201 of the social security act; provided, however, that if the federal title XII loans are repaid through a state revenue bond or other financing mechanism, then these funds may also be used to pay the principal and/or interest that accrues on that debt. (iii) For tax year 2013, if the director determines that there are funds available in this restricted receipt account that are not needed to pay interest on title XII advances in that year, up to two million dollars ($2,000,000) may be transferred to a sub‐ account, referred to as the information technology sub‐account, or the IT sub‐account. The funds in the information technology sub‐account shall be used to pay for the development and implementation of a new computer processing system for the Unemployment Insurance (UI) tax and benefit program. (iv) For tax year 2014, if the director determines that there are funds available in this restricted receipt account that are not needed to pay interest on title XII advances in that year, up to three million dollars ($3,000,000) may be transferred to the information technology sub account. (v) For tax year 2015, if the director determines that there are funds available in this restricted receipt account that are not needed to pay interest on Title XII advances in the current year, up to three million dollars ($3,000,000) may be transferred to the information technology sub‐account. (vi) For tax year 2016 and subsequent tax years, whenever the director determines that the amount in the restricted receipt account established by subsection (ii) of this section is sufficient to pay any outstanding principal and/or interest due in the current calendar year on title XII advances received from the federal government in accordance with the provisions of section 1201 of the social security act, including any principal and/or interest that accrues on debt from a state revenue bond or other financing mechanism used to repay the title XII advances, then the additional twenty five hundredths of one percent (0.25%) shall not be paid that tax year. Any remaining funds in the restricted receipt account, after the outstanding principal and interest due has been paid, shall be transferred to the employment security fund for the payment of benefits. Your Chamber of Commerce Coalition will be sure to keep you up to date on developments regarding this and all above issues.

Where will your Chamber Coalition be at the State House next week? (Schedule to date)

Date

Committee

Time

Place

Tuesday, March 05, 2013

House Committee on Corporations

5:00 PM

Room 203 ‐ State House


House Committee on Finance

1:00 PM




5:00 PM


House Committee on Labor

5:00 PM



Senate Committee on Corporations

5:30 PM



Senate Committee on Finance

3:00 PM


Wednesday, March 06, 2013


2:00 PM


Wednesday, March 06, 2013


2:00 PM


Thursday, March 07, 2013


1:00 PM




5:00 PM



House Committee on Municipal Government

5:00 PM



Senate Committee on Corporations

5:30 PM




3:00 PM



Remember: The Chamber of Commerce Coalition is your voice at the Rhode Island State House. If you have any concerns, questions or comments, please do not hesitate to contact David Carlin, Chamber of Commerce Coalition coordinator and lobbyist, at (401) 334‐1000 ext. 107 or by email at [email protected] The Chamber of Commerce Coalition is comprised of 11 Chambers of Commerce, representing 7,500 member businesses. It is the largest business advocacy group in Rhode Island.