State House Report: House Budget, Gambling & Compassion Centers
Saturday, June 02, 2012
Although the General Assembly introduced and passed a multitude of legislation this week, the marquee news was Thursday’s big reveal of the state’s 2013 budget. The bill, which looks to remedy numerous severe cuts made last year, tackles education, developmental disability funding and new tax revenue, among others. Aside from the budget, lawmakers also tackled casino gambling, foreclosures, natural disaster relief and medical marijuana compassion centers.
Finance Committee approves 2013 state budget
On Thursday, the House Finance Committee approved the state’s 2013 budget with a 15 to 1 vote. The $8.1 billion spending plan significantly repairs cuts made to developmental disability funding, speeds up school aid funding and looks to protect Central Falls retirees by giving the struggling city $2.6 million allocation. Furthermore, the 2013 budget avoids most tax increases proposed by Gov. Chafee, including the meal tax expansion.
“This budget is excellent news for education and for our struggling cities and towns,” said Rep. Helio Melo, chairman of the House Finance Committee. “In an era when we’ve often struggled to even maintain funding for many of our programs, we were able to get more money to schools sooner than expected, and also speed up money for distressed communities. It’s also good for taxpayers, because we were able to prevent several tax and fee increases. We were able to use a great deal of Governor Chafee’s proposal, and we’re grateful to him and all of those who brought their ideas to the table so we can do as much as we can for the state with the resources we have.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAs previously stated, the new budget looks to mend some of the massive cuts made to developmental disability programs. The bill would return $9.6 million in state and federal funding, as well as maintain dental coverage for adults on Medicaid. Dental coverage, which lawmakers previously considered cutting, was restored through state funding and money from Neighborhood Health Plan.
Education wise, the legislation includes $22 million to fund the second year of Rhode Island’s new state education aid formula. Additionally, the budget also allocates an additional $11 million to accelerate the program’s execution. Also notable is bill’s dismissal of the “maintenance of effort” law that requires cities and towns to pay local contributions to schools if funding falls below a certain threshold.
Aside from dismissing Gov. Chafee’s meal tax increase from 8 percent to 10 percent, the bill would also repeal last year’s proposed scenic tour and transportation services tax. Although the House Finance Committee approved bill avoids quite a few new taxes, it also allows for several others. For example, it allows for a new luxury clothing tax on items costing more than $250, which is projected to generate roughly $5.9 million in state revenue. The budget would also make taxi and limousine rides, car washes and pet services subject to the sales tax. In a further attempt to generate additional revenue, the bill proposes raising the state’s cigarette tax from $3.46 to $3.50.
Mortgage conciliation bill approved in House
Although the economy has demonstrated slight signs of improvement, home foreclosures have continued to destroy communities both locally and nationally. In an attempt to protect homeownership, the House has just approved a mortgage conciliation bill. Proposed by Attorney General Peter F. Kilmartin and introduced by Rep. Richard P. Morrison (D-Dist. 68, Bristol, Warren), the legislation looks to help individuals avoid foreclosure by participating in a conciliation process, which is offered at no cost to the state or the homeowner. Aside from offering a conciliation conference, the proposal will also provide homeowners with the opportunity to receive housing counseling.
“This bill will help protect Rhode Island homeowners, which is its first and prime intent, said Rep. Morrison. “At the same time, the bill will be beneficial for the banks, which until now have been anything but cooperative with mortgage holders who find themselves in financial difficulties. The goal is to keep people in their homes and this bill will help do that. It will provide critical help at a critical time in the lives of some hard-hit homeowners.”
Housing conciliation has already been implemented in certain communities in Providence, Cranston, and Warwick and to great success. By the end of 2011, nearly three-quarters of all homeowners that participated in the process were able to reach agreements with their lenders to remain in their homes.
General Assembly gives final approval to compassion centers compromise bill
On Tuesday, the General Assembly finally granted its support to legislation designed to address concerns about Rhode Island’s medical marijuana compassion centers. Sponsored by Sen. Rhoda E. Perry and Rep. Scott A. Slater, the legislation (2012-S 2555A, 2012-H 7888A) is essentially a compromise amongst sponsors, legislative leaders and Gov. Lincoln Chafee. Although a 2009 law authorized the establishment of three compassion centers, Gov. Chafee delayed the issuance of licenses last year due to concerns over the bill. In particular, the governor felt that several loopholes in the original legislation would invite federal intervention.
“Since the Rhode Island medical marijuana law invited federal action, I have been working with advocates on a remedy. I applaud Senator Perry and Representative Slater for their work and I look forward to passage of a bill that will avoid federal intervention and bring needed medicinal relief to those who stand to benefit,” said Gov. Chafee when the bill was proposed earlier this year.
The new legislation addresses Gov. Chafee’s concerns, including putting a cap on the amount of marijuana compassion centers can grow. The 2009 legislation did not set a limit on marijuana quantities, which may have attracted federal attention and possible raids. Additionally, the bill specifies that registered patients or caregivers who grow their allotted maximums to sell excess amounts back to compassion centers. This stipulation looks to tackle fears that excess amounts may be sold illegally.
“This bill means hope for the many patients in Rhode Island who have been waiting for years to be able to get their medicine safely, without having to turn to the streets and the black market. I’m very hopeful that the compassion centers that were already in the process of becoming licensed will be able to pick up where they left off and be up and running in the near future,” said Senator Perry.
Bill introduced to set state share from Twin River, Newport Grand among nation's highest blended rates
The never-ending state casino saga continued on Tuesday with a hearing that discussed legislation looking to preserve the success of the states two gambling facilities, Twin River and Newport Grand. The bill (2012-S3001), establishes Rhode Island’s share of table games at 18 percent at both casinos. The bill, however, does note that Twin River’s rate would be lowered to 16 percent if it should experience a considerable drop in revenue. Since Newport Grand is a smaller facility, it would sustain a 1.5 percent rate increase on video lottery terminals, aside from the 18 percent table game rate.
“The primary goal of this legislation is to preserve the revenue Rhode Island receives from Twin River and Newport Grand,” said Sen. Maryellen Goodwin, Chairwoman of the Joint Committee on Lottery. “That means providing a fair tax rate on the more labor-intensive table games which enables the facilities to thrive while taking steps to mitigate, as much as possible, new competition from Massachusetts. The rate maintains Rhode Island’s position as among the highest in the nation, but it is also fair to the facilities which we all want to see succeed.”
Preserving the state’s gambling revenue has been an issue for lawmakers since neighboring Massachusetts approved the construction of three full casinos last year. A comprehensive 99-page study, commissioned by the governor recently concluded that Rhode Island’s annual revenue would decrease by nearly $100 million when Massachusetts’ permitted casinos open in 2017.
House passes Kennedy bill to facilitate out-of-state help during emergencies
With the start of hurricane season in mind, the House has passed a proposal, which would facilitate out-of-state help during emergencies. The bill, proposed by Rep. Brian Patrick Kennedy (D-Dist. 38, Hopkinton, Westerly), would apply to natural disasters such as tropical storms, blizzards and flooding.
“Time is of the essence, in and after an emergency, and the shorter the time it takes to return things to normal the better for our state’s citizens,” said Rep. Kennedy. “If a disaster should hit the state and conditions are ever so bad that Rhode Island must rely on out-of-state businesses and companies to help out, we need an expedited process for allowing those companies to come in and provide our state with the resources it needs to restore service and operations.”
Rep. Kennedy’s bill aims to hurry the process in which out-of-state businesses enter Rhode Island in the event of an emergency. Companies aiding the state will not be hampered by any requirements during their temporary stay in the Ocean State.
“We don’t want utility employees waiting at the state line while the paperwork is being submitted,” said Rep. Kennedy. “This bill clears the way for assistance when it is needed, and lets out-of-state business employees and affiliate company employees, come here to do what needs to be done to get Rhode Island back in operation in a timely manner.