State House Roundup: What’s Happening on Smith Hill?

Saturday, March 03, 2012

 

The General Assembly’s first week back from recess proved to be an eventful one. Although no legislation gained as much media attention as actor James Woods' testimony in support of the benevolent gestures bill, there were a number of noteworthy proposals put forth. This past week saw the introduction of 111 House bills, as well as 168 Senate proposals. Despite the abundance of legislation, GoLocalProv is choosing 5 bills to examine. So what’s on the docket? This week we examine legislation pertaining to three vital areas for the state: wages, public safety and revenue.

House Bill No. 7396- Minimum Wage Increase

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A hearing on the proposed minimum wage increase was held on Wednesday before the House Labor Committee. Originally proposed last month by Rep. David Bennett, the bill calls for a 35 cent increase, which would raise the state’s minimum wage to $7.75 an hour. The legislation received strong support at the hearing from Rhode Island AFL-CIO President George Nee, who argued that all of Rhode Island’s neighboring states have higher minimum wages and lower unemployment rates. Despite strong support from labor groups, Steve Arthurs, President of the RI Food Dealers Association, said that a boost in wages would translate to higher food prices.

The $7.75 minimum wage would still be lower than Massachusetts and Connecticut, which have minimum wages of $8.00 and $8.25 respectively. If enacted, the minimum wage increase would occur on Jan. 1, 2013; the state's first bump since 2007. The current federal minimum wage of $7.25 was established in 2007 with the Fair Minimum Wage Act. Although there is a federal minimum wage, four states (Wyoming, Arkansas, Minnesota, Georgia), have minimum wages below the federal rate.

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House Bill No. 7566- Anti-Tip Theft

Aside from a proposed boost to minimum wages, another legislator has his eyes set on helping workers protect tips. Although restaurant patrons may assume that the tip they leave goes to the waiter or waitress, it turns out that some establishments require that workers hand over tips to their employers. A new piece of legislation proposed by Rep. Christopher Blazejewski looks to end this practice.

“When customers leave good tips for good service, they intend to reward the people who provided that service. The money should go to the servers, not their employer, especially where many workers earn less than minimum wage. Besides being unfair to service workers, it’s also dishonest to consumers, who assume that tip is going to their waiter or waitress,” said Rep. Blazejewski.

If written into law, the bill would make it illegal for employers to demand, request or accept tips from their waitstaff. Employers found guilty of violating this law would face a misdemeanor crime punishable by fines up to $1,000 and up to 60 days in prison. Lastly, guilty employers will be required to pay restitution with an interest rate of 12 percent. States like Massachusetts, New York and California already have similar laws in place.

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House Bill No. 7593- Convention Center Naming Rights

This week, Rep. Deborah A. Fellela reintroduced a proposal to allow the Rhode Island Convention Center to put its naming rights up for bid. Fellela originally pitched this proposal to no avail in 2008, but the Representative believes that now is the right time to reintroduce the bill. “It’s really a win-win situation,” said Rep. Fellela. “It’s a deal that could result in millions of dollars for the state. For every bit of additional revenue we find, it’s one less difficult decision we have to make as legislators. It’s one less cut to essential services or programs in our budget.”

Rep. Fellela is basing her assumptions of the 2001 naming-rights deal in which the Providence Civic Center was sold to Dunkin’ Donuts, pumping $8 million into the local economy. In 2005, the Dunkin’ Donuts Center was purchased from the city of Providence by the Rhode Island Convention Center Authority. Aside from the initial $8 million, the state earned an additional $5 million last June when a deal was reached with Dunkin’ Donuts to extend naming rights an extra 10 years. The bill has been referred to the House Finance Committee.

House Bill No. 7543- Table Games at Newport Grand

On Wednesday, the House Finance Committee unanimously endorsed a proposal to ask voters whether the Newport Grand slot parlor, should add casino gaming. If the legislation becomes law, Newport Grand would join Lincoln’s Twin River slot parlor on the scheduled November referendum. If voters agree, Twin River and Newport Grand would become full-casinos with table gaming like poker and blackjack.

Rhode Island's rush to get table gaming on the ballot is a response to Massachusetts' authorization of three full casinos and one slot parlor. The Newport Grand bill states that adding table games “will play a critical role in the economy of the state and enhance local revenue.” The two Rhode Island slot parlors generate roughly $300 million annual, which makes it the state’s third-largest source of income. Unfortunately, a new 99-page study indicates that the state’s yearly revenue will dip nearly $100 million when the three Massachusetts casinos open to the public in 2017.

The referendum will appear on the November ballot if the full General Assembly agrees. Rhode Islanders rejected a similar bill in 2006, but recent polls show that the majority of voters are in favor of the proposal.

Senate Bill No. 2131- “Complete Streets” Road Design

This past Tuesday, the Senate approved the “complete streets” bill intended to accommodate the mobility needs of all citizens when it comes to future road construction projects. Complete streets, also known as livable streets, are roadways engineered to ensure safety, attractiveness and ease of access to all users, including pedestrians, bicyclists and motorists.

“Cars shouldn’t be the only consideration when public roads are being built, said Sen. Louis P. DiPalma, a co-sponsor of the bill. “The health and environmental benefits of walking, bicycling and other active modes of transportation are well known, and we should be building our roads in ways that are safe for those activities and encourage people to choose them.”

If enacted, Rhode Island would become the 26th state with complete streets legislation. A similar bill is currently making its way through the West Virginia legislature as well. The first statewide complete streets policy was enacted in Oregon in 1971.

 

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