{"id":813,"date":"2024-06-17T12:44:50","date_gmt":"2024-06-17T16:44:50","guid":{"rendered":"https:\/\/www.apslaw.com\/its-your-business\/?p=813"},"modified":"2026-01-13T11:17:05","modified_gmt":"2026-01-13T16:17:05","slug":"2024-rhode-island-legislative-session-report","status":"publish","type":"post","link":"https:\/\/www.apslaw.com\/its-your-business\/2024\/06\/17\/2024-rhode-island-legislative-session-report\/","title":{"rendered":"2024 Rhode Island Legislative Session Report"},"content":{"rendered":"

The Rhode Island General Assembly adjourned sine die<\/em> on Friday, bringing the 2024 legislative session to a close. Below is an overview of noteworthy legislation passed during the session.<\/p>\n

Budget \u2013 2025 Fiscal Year<\/h2>\n

With the COVID-19 pandemic in the rearview, the $13.963 billion budget (H 7225 Sub A<\/a>)<\/strong> reflects the end of federal pandemic aid, totaling $60 million less than the current fiscal year.\u00a0 The budget also reflects Governor Dan McKee\u2019s commitment to education, increasing education funding by $73 million over last year.<\/p>\n

The budget directs additional funding for public bus routes and cost-of-living adjustments for public retirees, raises Medicaid reimbursement rates, and includes a $120 million affordable housing bond.\u00a0 The budget also allocates $83.6 million for the state match for federal funds for the reconstruction of the Washington Bridge, and $2.6 million to businesses impacted by the bridge closure.<\/p>\n

Businesses and Employers<\/h2>\n

Arbitration Provisions and Agreements<\/strong><\/em>.\u00a0 The General Assembly passed legislation (S 2671<\/a> \/ H 7952<\/a>)<\/strong> \u00a0that includes various amendments to the arbitration statute, R.I. Gen. Laws \u00a7 10-3-2. Among other things, the legislation: (1) adds requirements for providing notice of intention to arbitrate; (2) allows multiple parties seeking arbitration against the same party to bring proceedings in any court and county where any of the parties seeking arbitration resides or does business; (3) guarantees parties the right to be represented by an attorney in arbitration and prohibits any agreement that discriminates against or penalizes a party for retaining counsel; (4) mandates that, in employment or consumer arbitration, unless otherwise specified, the drafting party must pay certain fees and costs before arbitration can proceed and failure to do so within 30 days results in a waiver of the right to compel arbitration; and (5) allows courts to impose various sanctions on drafting parties that breach arbitration agreements.<\/p>\n

Businesses and employers that use arbitration provisions should review and update existing form contracts to ensure compliance with these changes.<\/p>\n

Payment of Wages<\/em>.\u00a0 <\/strong>The General Assembly passed legislation (S 2021<\/a> \/ H 7532<\/a>)<\/strong> that removes the minimum wage exemption for domestic workers in the Rhode Island Payment of Wages Act.\u00a0 Previously domestic workers were not considered \u201cemployees\u201d under the RIPWA and thus were only guaranteed the federal minimum wage of $7.25 per hour.\u00a0 With this change in the law, domestic workers may be entitled to the protections provided to employees under the RIPWA.<\/p>\n

Employee Health Care Benefits<\/em><\/strong>.\u00a0 The General Assembly passed a bill (S 2901 Sub B<\/a> \/ H 7795 Sub B<\/a>)<\/strong> that protects employees\u2019 rights to health care benefits by prohibiting contractors and subcontractors from paying employees the cash equivalent of any applicable health care benefit in lieu of actually purchasing the health care benefit.\u00a0 Contractors and subcontractors should take note of this change in the law and adjust accordingly, as violations will subject them to civil fines.<\/p>\n

\u00a0<\/em><\/strong>Manufacture and Sale of Goods.<\/em><\/strong>\u00a0 The General Assembly passed the Consumer PFAS Ban Act of 2024 (S 2152 Sub A<\/a> \/ H 7356 Sub A<\/a>)<\/strong>, which bans the intentional addition of Per- and Polyfluoroalkyl Substances (PFAS) to consumer products sold or manufactured in Rhode Island by January 1, 2027, and would ban all uses of almost all PFAS by Dec. 31, 2032.\u00a0 The General Assembly also updated the Toxic Packaging Reduction Act (S 2850 Sub B<\/a> \/ H 7619 Sub A<\/a>)<\/strong> by delaying the ban on PFAS in food packaging until January 1, 2025, and in processing agents until July 1, 2027.<\/p>\n

Uniform Commercial Code<\/em>.<\/strong>\u00a0 The General Assembly passed a bill (S 2781<\/a> \/ H 7210 Sub A<\/a>)<\/strong> amending the Rhode Island Uniform Commercial Code for emerging technologies. The 112-page bill contains extensive changes to numerous sections of the UCC.<\/p>\n

Financial Institutions<\/h2>\n

Corporate Tax Structure<\/em>. <\/strong>The General Assembly passed legislation (S 3152 Sub A<\/a> \/ H 7927 Sub A<\/a>)<\/strong> allowing financial institutions to elect a single sales factor apportionment methodology for calculating corporate income tax.\u00a0 Rhode Island currently uses a three-factor apportionment for financial institutions, a method that determines tax based on a company\u2019s property, payroll and sales. \u00a0Beginning January 2025, Rhode Island will shift to the single sales factor methodology, which will bring the state in line with others in the region.<\/p>\n

The General Assembly updated the banking statutes and Home Loan Protection Act in the Rhode Island General Laws (S 2803<\/a> \/ H 7282<\/a>)<\/strong> as follows:<\/p>\n