Coming up in Committee: Proposed Constitutional Amendments Being Heard by the RI General Assembly, April 14 – April 15

1. Proposed constitutional amendments, requiring voter approval if passed by the legislature, being heard in the Rhode Island General Assembly this week:

  • S0173: Subjects the General Assembly to the state Ethics Commission, while changing the composition of the commission so that 6 of its 11 members are appointed by the Governor from lists of candidates submitted by “the speaker of the house of representatives, the majority leader of the house of representatives, the minority leader of the house of representatives, the president of the senate, the majority leader of the senate, and the minority leader of the senate”, and allows Ethics Commission decisions to be appealed to the courts. (S Judiciary; Tue, Apr 14)
  • S0056: Subjects the General Assembly to the state Ethics Commission and that’s it. (S Judiciary; Tue, Apr 14)
  • S0057/S0059: Line-item veto for the Governor of Rhode Island. (S Judiciary; Tue, Apr 14)
  • S0062: Extends state Senator and state Representative terms to four years, in return for creating a term-limit of three terms. (S Judiciary; Tue, Apr 14)
  • S0436: Mandates instant-runoff voting for the state’s general officers (but doesn’t specify the details of the process, though that could reasonably left to legislation). (S Judiciary; Tue, Apr 14)
  • H6027: Eliminates the requirement of 30 days of residency at an address, before being allowed to vote in an election as a registered voter at that address. (H Judiciary; Wed, Apr 15)

Coming up in Committee: Gun Rights/Gun Control Bills Being Heard by the RI General Assembly, April 14 – April 15

2. Of this year’s raft of gun rights/gun-control bills, this one is the most significant:

  • H6017: Changes concealed carry permitting authority for the RI Attorney General from a “may issue” basis, to a “shall issue” basis, provided that the permit applicant passes a background check, and meets all criteria laid out in a detailed application specified in the law. (H Judiciary; Wed, Apr 15)

The other bills being heard are:

  • H5872: Extends the ban on individuals convicted of committing crimes of violence “purchasing, owning, carrying, transporting, or having in his or her possession any firearm” to individuals convicted of domestic violence misdemeanors. (H Judiciary; Tue, Apr 14)

Coming up in Committee: Twenty-Five Sets of Bills Being Heard by the RI General Assembly, April 14 – April 16

3. H5819: 1) Outlaws stop-and-frisk police procedures by extending the current requirement that motor vehicle stops be predicated on “reasonable suspicion or probable cause of criminal activity” to pedestrians, 2) requires that, whenever possible, motor vehicle stops be recorded (but not making the recordings part of the public record), and 3) mandates that the department of transportation gather data on whether “racial disparities in traffic stops exist”. (H Judiciary; Tue, Apr 14)

4. Bud. Art. 11, sec 15: Creates a statewide property tax on non-owner occupied residential property, applied to properties valued at $1M or more.(S Finance; Tue, Apr 14) The odd construction regarding taxing the privilege of owning property rather than the property itself is slated to be removed by amendment (h/t Katherine Gregg).

5. S0296: Repeals the section of the law allowing “deferred deposit” loans, i.e. “pay-day” loans, also eliminating the provisions in the law that allow check-cashing businesses to automatically operate as pay-day lenders. (S Commerce; Tue, Apr 14) According to the official description, this is a complete repeal of pay-day lending.

6. Bud. Art. 29: Gives the Commerce Corporation power to issue tax-credits for large construction projects, with special provisions allowing projects in Providence — oh, excuse me; in communities with 150,000 or more in population — to be fast-tracked, allowing them to bypass local building and inspection requirements. (H Finance; Wed, Apr 15)

Coming up in Committee: Ten Sets of Bills to be Heard by the RI General Assembly, Today, April 9

1. H5563: Inter-district school choice plan for Rhode Island public schools, where “any child may attend a public school, in a city or town where he/she does not reside, as provided for in this chapter”. (H Finance; Thu, Apr 9)

2. H5956: Bans union versus non-union status from being used as a criterion for the awarding of public contracts, and prohibits public-works contracting provisions requiring utilization of specific unions, or requiring that a union be recognized as an exclusive bargaining representative. (H Labor; Thu, Apr 9)

3. H5962: Extends the authority of the Director of Environment Management to regulate construction near freshwater wetlands, to include granting building approvals over “areas subject to flooding”, “contiguous areas that extend outward”, or land “two hundred feet from the edge”. (H Environment and Natural Resources; Thu, Apr 9)

Coming up in Committee: Nineteen Sets of Bills to be Heard by the RI General Assembly, Today, April 8

1. H5507: Establishes a legal regime for physician assisted suicide in Rhode Island. (H Health, Education and Welfare; Wed, Apr 8)

2. H5708: Bans non-competition agreements in Rhode Island “unless the non-competition agreement is integral to, and part of the consideration for the sale of the stock or assets of a business, or the dissolution of a partnership or the withdrawal of a partner from a partnership”. (H Corporations; Wed, Apr 8)

3. Bud. Art. 17: Limits General Assembly budgetary authority over the Department of Children, Youth and Families to authorizing a total amount, giving the director the power to spend his or her budget without regard to any specific allocations. (S Finance; Wed, Apr 8)

4. H5576: Requires that a photo-ID be shown when using an EBT card. (H Health, Education and Welfare; Wed, Apr 8)

5. Bud. Art. 11, sec 5: Allows the division of taxation to enter into contracts with private parties that can take a cut of “taxes, interest, or penalty or the reduction of refunds claimed” that they recover for the state. (H Corporations; Wed, Apr 8) Are these kinds of tax-privateering arrangements common in other states, or is this a Rhode Island thing?

Coming up in Committee: Twenty-Two Bills to be Heard by the RI General Assembly, Today, April 7

1. Bud. Art. 11, sec 15: The oddly-constructed statewide property tax, written not as a tax on property but on “the privilege of utilizing property as non-owner occupied residential property within the state during any privilege year commencing with the privilege year beginning July 1, 2015”, which applies to non-owner occupied properties valued at $1M or more. (H Finance; Tue, Apr 7) A tax on the “privilege” of owning property is very difficult to justify (using earth logic) from the perspective of trying to writing laws that are clear and fair, as a tax on a “privilege” can be assessed whether the privilege is exercised or not. But here’s an interesting question: Is a tax on “privilege” versus actual property deductible from Federal income tax? There are ramifications either way…

2. H5784: Requires that at least one health plan offered to individuals and small businesses by the Rhode Island health benefits exchange exclude “coverage for induced abortions”, with exceptions for cases involving rape and the life of the mother. (H Corporations; Tue, Apr 7)

3. H5903: Salary controls for hospital administrative staff, limiting non-health care professionals to “a rate of compensation [not] greater than one hundred and ten percent (110%) of the amount determined annually by the director to constitute the northeast regional average compensation level for comparable personnel serving in comparable hospitals”. (H Corporations; Tue, Apr 7)

4. S0620: Centralizes healthcare decision making in government in a new “office of health policy”, whose powers include the power to cap the amount of healthcare in RI paid for with commercial insurance. (S Health and Human Services; Tue, Apr 7)

5. H5374: Constitutional amendment (requiring voter approval) restoring Ethics Commission jurisdiction over the legislature. (H Judiciary; Tue, Apr 7)

Coming up in Committee: The Top Three Sets of Bills to be Heard by the RI General Assembly, March 31 – April 2

The top 3 issue areas being heard by the Rhode Island General Assembly deserve their own post…

1A. H5704: Allows Rhode Islanders to buy insurance policies provided by out-of-state insurers, “provided that the insurer conforms to requirements imposed upon insurers licensed to do business in this state”. (H Corporations; Tue, Mar 31)

1B. Bud. Art. 28: Allows the secretary of Health and Human Services to directly impose taxes on the sale of small employer and individual health plans without General Assembly approval, with revenues earmarked for the Rhode Island health benefits exchange. (S Finance; Wed, Apr 1)

1C. H5597: Government takeover of the siting and management of health provider networks in Rhode Island, giving the state health commissioner authority in such areas as hours of operation, staffing placement, criteria for evaluating doctor performance, approval of contract terms between health insurers and providers, etc. (H Corporations; Tue, Mar 31)

2A. H5845: Requires that Rhode Island students be able to opt-out of “the Partnership for the Assessment of Readiness for Colleges and Careers (‘PARCC’) assessment”. (H Health, Education and Welfare; Wed, Apr 1) Given that there is no time-limit on this bill, it basically assumes that a standardized test will never be a graduation requirement for Rhode Island public schools.

2B. Meanwhile, H5814 asks (via a non-binding resolution) for the Department of Education “to require all Rhode Island school districts to submit each district’s minimum high school graduation requirements” . (H Health, Education and Welfare; Wed, Apr 1). The resolution begins by saying “in 1999, in his State of the Union Address, former President Clinton stated ‘No child should graduate from high school with a diploma he or she can’t read'” — but will this General Assembly ever allow the state to make a direct assessment of whether students can read a part of earning their diplomas?

3. H5688: Requires that assigning students to Mayoral Academies be done by a random lottery involving all students in a participating district, with selected students able to opt out if they so choose. (H Health, Education and Welfare; Wed, Apr 1) I’m not sure what’s worse about this bill: the conscious lengths that progressive education reform opponents go to to show that they believe that government and not families should control the lives of children, or the unconscious bias amongst progressive education reform opponents it reveals, that life is just a big lottery that education cannot change..

Coming up in Committee: Bill Sets 4 thru 35 to be Heard by the RI General Assembly, March 31 – April 2

4. H5631: Allows individuals who have property confiscated as part of a civil forfeiture proceeding to “seek a court determination as to whether the forfeiture is disproportionately excessive to the gravity of the offense giving rise to the forfeiture”. (H Judiciary; Tue, Mar 31)

5A. H5610: Mandates that the Department of Public Safety begin “to implement an electronic automobile and commercial vehicle liability insurance confirmation and compliance system” that includes “an automatic license plate recognition system to electronically capture license plate images in two seconds or less and noninvasively attempt verification of the insurance and when possible, the registration status of the vehicle”. (H Finance; Wed, Apr 1)

5B. H5606: Requires that applicants for operators and chauffeur licenses have a valid social security number. (H Finance; Wed, Apr 1) It will be interesting to see how many legislators end up taking the position that requiring social security numbers for operators and chauffeur’s licenses is unreasonable, while supporting an electronic system that is supposed to watch every automobile in the state.

6. H5495: Minimum-manning for social workers at public schools, one per 400 students. (H Health, Education and Welfare; Wed, Apr 1)

7. H5961: Unambiguously establishes that holding a seat on the Cumberland Fire District board is holding public office — and that “members shall hold no other public office”. (H Judiciary; Wed, Apr 1) I understand and agree with the spirit of this bill: it’s crazy that here in Rhode Island, we pretend that there’s ambiguity about whether Fire Districts are part of the government or not. However, 1) a bill like this shouldn’t be confined to one community and 2) the authors of the bill need to carefully review the law in this area, to make sure there aren’t potential problems (legal and ethical) with burdening Cumberland Fire District Board members more than other local officials.

Amazon: Failure to Lure or RI Out of the Question?

Nobody’s mentioned it, but the decision of Amazon.com to place a major distribution center in Fall River (rather than Rhode Island) may be a ripple of consequence from the General Assembly’s 2009 attempt to grab money from the company’s sales.

Coming up in Committee: Thirty-Five Sets of Bills Being Heard by the RI General Assembly, March 24 – March 26

1. H5621: Resolution calling for a Constitutional Convention to propose amendments to the Federal Constitution (requiring 2/3 of state legislatures to agree), with the initial scope of the Convention limited to narrowing First Amendment protections for political speech. (H Judiciary; Wed, Mar 25) Also, the article of describing the proposed make-up of the convention is grammatically awkward: “That this House hereby respectfully requests that the delegates to said convention be comprised equally of individuals currently elected to state and local office, or be selected by election, in each Congressional district for the purpose of serving as delegates”. Formally that could say we either get a split between state and local officials or a special election. Is that what’s meant?

2. Series of anti-Uber bills, H5808 prohibits non-taxicab rides from being arranged less than 2 hours in advance. H5809 requires non-taxicabs used for transporting passengers to obtain a “vehicle identification device” from the state. H5811 subjects “public motor vehicles” to the Public Utilities Commission. (H Corporations; Tue, Mar 24) A government that wants to tell people they can’t schedule rides with one another less than two hours in advance needs some deeper thought on the fundamental limits it should be allowed to place on its citizens, just because an activity is considered “commercial”.

3. S0488: Moratorium on opening new “licensed home care, home nursing care, inpatient hospice care, and outpatient hospice care agencies” in Rhode Island, and creates a “home healthcare system planning task force” that will lift the moratorium at some time in the future. Also, S0486 gives the Department of health new powers for shutting down unlicensed home healthcare agencies. (S Health and Human Services; Thu, Mar 26)

4. H5455: Anti patent trolling legislation. (H Judiciary; Tue, Mar 24) This seems to be as good a place as any for actual bi-partisan agreement in Rhode Island.

Some of the Larger, Seriously Ill-Advised Items In the Governor’s (What Kind of) “Jobs Budget”

During the days following its release, reporters, analysts and observers worked to unpack the budget that Governor Raimondo sent to the General Assembly — and found some unpleasant items therein. Here is a bullet list of some of the bigger ones.

Proposed Statewide Property Tax

… aka, the Taylor Swift tax.

Justin got clarification from Governor Raimondo’s office that the INTENT is not to include apartment buildings as properties to be taxed. This conforms to Governor Raimondo’s attempt to sell this tax as having only a narrow list of targeted properties. (So, gosh, don’t worry about it. And, anyways, we only want to tax those icky rich people.)

Intent, however, is completely secondary. If this tax passes into law, the door will be opened wide for future – and current! – governors and General Assemblies to tax apartment buildings (of all classes and sizes); commercial buildings; second homes of less than one million dollars; PRIMARY homes of more than one million dollars; primary homes of $750,000 – $1,000,000; et empty state cetera. The critical issue is not that the initial list of targeted properties is short. It’s that the list comes to exist at all. To subject just one property classification to a new, statewide tax would set the precedent to subject virtually all real estate in Rhode Island to a statewide property tax via an easy tweak of the targeted property list.

In a perfect bit of timing, RIPEC released an analysis right before the governor released her budget of just how much Rhode Islanders are already taxed. By one measure, Rhode Island already has the fourth highest property taxes in the country. The governor is seriously proposing to raise that ranking? In fact, the one thing above all that our elected officials should not do is exacerbate this burden.

Further, there’s the matter of Rhode Island’s already undesirable reputation as a high tax state. On Twitter, Gary Sasse correctly asks,

When Tax Foundation.et. al.rank tax climate will new statewide property tax impact rankings w resulting reputation risks?

Further to “reputation risks”, WPRO’s Gene Valicenti pointed out Friday morning that the governor’s mere proposal has made the national news via the AP’s feed. This is exactly the kind of publicity that Rhode Island needs to avoid, not curry.

Governor Raimondo’s Proposed Statewide Property Tax Redefines Ownership of Real Estate as a Privilege

This one was a great catch by Justin.

Coming up in Committee: Twenty-Nine Sets of Bills Being Heard by the RI General Assembly, March 17 – March 19

1. S0593: Eliminates the up-to six month prison sentence for instances of disorderly conduct — including for “obstruct[ing] a highway…to which the public or a substantial group of the public has access or any other place ordinarily used for the passage of persons, vehicles, or conveyances” — unless the case involves domestic violence. (S Judiciary; Tue, Mar 17)

2. H5589: Phases in a requirement that employers apply to participate in e-verify, with the last wave of employers,those with less than 50 employees, required to apply no later than January 1, 2017. (H Labor; Thu, Mar 19)

3. S0650: Imposes an additional $46 fee for a marriage license, $44 of which is to be administrated by the Rhode Island Coalition against Domestic Violence to fund domestic violence prevention programs. (S Judiciary; Tue, Mar 17) The Department of Justice reports that “intimate partner violence” rates for married women are significantly lower than are the rates for never married or divorced/widowed women, yet a group of RI legislators think it’s a good idea to make couples who are taking basic steps towards responsible commitment pay for the bad acts of everyone. This bill creates the impression that Rhode Island’s dour progressives really don’t like marriage very much.

Keable-entering and the Law, as Written

The plain language of Rhode Island law suggests that Rep. Cale Keable might face a mandatory minimum prison sentence of two years for breaking and entering, but that fact creates incentive for law enforcement to find him innocent prior to prosecution.

Home-Alone Minor Films House Judiciary Chairman Forcibly Opening Apartment Entry Door

Representative Cale Keable, a landlord with properties in Mapleville, is seen in an online video forcibly opening an entry door, despite the request of the tenant’s minor son for him to return when his mother is home.

Coming up in Committee: Twenty-Six Sets of Bills Being Heard by the RI General Assembly, March 10 – March 12

1A. H5343: Sensible fiscal rules for fire-districts, including a 4% annual cap on tax-increases, limitation of debt to 5% of annual operating budgets, a ban on tax-classification plans, and a ban on assessing supplemental taxes “without conducting a properly advertised special meeting which satisfies the annual budget meetings notice and attendance provisions”. (H Finance; Wed, Mar 11)

1B. H5344: Requires “2% of of the total registered and qualified voting members of the fire district” to be present at a fire-district financial meeting to establish a quorum. Also, H5345 establishes new notice requirements for fire-district meetings, including a minimum 60-day notice period for the annual budget meeting (H Finance; Wed, Mar 11)

2. H5519: Constitutional amendment (to be ratified by the voters) giving the Governor a line-item veto power over appropriations. (H Finance; Wed, Mar 11) I understand the desire to express this as a short amendment, but given the way the RI budget process works, given the currently proposed form, what’s to stop the GA from conducting a single en masse override of everything that was vetoed?

3. H5329: Terminates the “the Rhode Island health benefits exchange, known under the name ‘HealthSourceRI’, and the unified health infrastructure project” and transfers “all management and operation of the Rhode Island health benefits exchange to the U. S. Department of Health and Human Services and the U. S. Centers for Medicare and Medicaid Services”. (H Finance; Tue, Mar 10)

4. H5329: Exempts “Coventry, East Greenwich and West Greenwich from all the terms and provisions” of the “written long-term economic development vision and policy for the state of Rhode Island” and the “strategic plan for implementing this policy”. (S Finance; Tue, Mar 10)

5. H5651: Imposes an additional $46 fee for a marriage license, $44 of which is to be administrated by the Rhode Island Coalition against Domestic Violence to fund domestic violence prevention programs. (H Judiciary; Wed, Mar 11) I’ll repeat what I said about a similar bill from last year: The Department of Justice reports that “intimate partner violence” rates for married women are significantly lower than are the rates for never married or divorced/widowed women, yet a group of RI legislators think it’s a good idea to make couples who are taking basic steps towards responsible commitment pay for the bad acts of everyone. This bill creates the impression that Rhode Island’s dour progressives really don’t like marriage very much.

Coming up in Committee: Twenty-One Sets of Bills Being Heard by the RI General Assembly, March 3 – March 5

1A. H5350: Binding arbitration for municipal employees. (H Labor; Thu, Mar 5)

1B. H5475: Abolishes expiration dates from RI public-school teacher and municipal employee contracts, making their terms permanent until a new contract is agreed upon. (H Labor; Thu, Mar 5)

1C. H5473: Subjects fire-department “platoon structure and/or shift schedule” to collective bargaining. (H Labor; Thu, Mar 5)

2. H5317: Reduces the allowed difference in municipal property tax rates for different property classifications from 50% to 25%. (H Municipal Government; Thu, Mar 5)

3A. S0023/S0311/S0313: Mandates that for car-tax purposes, automobiles be assessed at trade-in rather than their retail value. (S Finance; Tue, Mar 3)

3B. S0043 raises the car-tax exemption for “distressed communities” to $6,000 (this is an automatic raise, not a local option). S0227 raises the car-tax exemption for “distressed communities” to $6,000 and compensates said distressed communities for the reduced revenue with state money. (S Finance; Tue, Mar 3) In present Rhode Island context, this means certain communities can receive a state subsidy for their financial mismanagement.

Coming up in Committee: Twenty-Nine Sets of Bills Being Heard by the RI General Assembly, February 24 – February 26

1A. S0134: Creates a crime of “unlawful interference with traffic” with reference to “any federal or state highway”, with a minimum prison sentence of one year for a first offense, 60 days of which cannot be suspended or deferred. (At present, the definition of disorderly conduct includes obstructing a “highway…to which the public or a substantial group 12 of the public has access”, punishable by imprisonment of up to 6 months, and a fine up to $500) (S Judiciary; Tue, Feb 24)

1B. H5417: Eliminates the up-to six month prison sentence for most instances of disorderly conduct — including for “obstruct[ing] a highway…to which the public or a substantial group of the public has access or any other place ordinarily used for the passage of persons, vehicles, or conveyances” — except in cases involving domestic violence. (H Judiciary; Wed, Feb 25)

2. S0314: Extends the state’s “facilities support” funding to all charter schools (currently, it is only available to “district sponsored charter public schools”). (S Finance; Tue, Feb 24)

3. S0305 / H5228: Writes into law in-state tuition at RI public colleges and universities for students who graduated from a Rhode Island high school that they spent three years at, including illegal aliens (but not non-immigrant aliens) who have applied for “lawful immigration status” or who promise to when a process is made available under a Federal amnesty law. (S Finance; Tue, Feb 24 &; H Finance, Thu Feb 26)

4. S0122: Tax credits for Rhode Island residents who are college graduates “in an amount equal to the payments made in a given tax year…toward undergraduate or graduate student loan debt, up to a maximum amount for single tax year of one thousand dollars for an associate’s degree holder, five thousand dollars for a bachelor’s degree holder, and six thousand dollars for a graduate degree holder”. (S Finance; Tue, Feb 24)

House Rules to be Voted On Today: A Half-Step Forward, Three More Needed

The full Rhode Island House of Representatives will vote on the rules for their chamber this afternoon. The proposed rules, amended since their introduction last week, contain at least one significant improvement over the originals. The first draft of the new rule 12(a) would have allowed a bill to be denied a hearing, without appeal, if “it appears from the subject matter that the issues presented would be substantially similar to those matters already heard”. In the rule 12(a) to be voted on today, a bill can only be denied a hearing, without appeal, if “it appears from the subject matter that the issues presented would be substantially similar to those matters already heard” ONLY IF the bill was filed after the 40th legislative day.

Beyond this, the rules of the RI House still are lacking in three substantial areas that need improvement, if the House is to operate in democratic fashion.

1. An amendment to rule 12(f) in this year’s rule makes clear that committee members cannot move to reconsider bills that are “held for further study”, i.e. once a bill is “held for further study”, it can only be brought back with the informal consent of the Speaker and a committee chair which, in practice, gives a one-man veto to the Speaker over every bill proposed. A clear procedure should be established in the rules by which a committee member can ask for a bill that’s been held for further study be considered, which the committee would decide on by majority vote.

I defy anyone to explain why establishing such a procedure would be a bad idea, without turning it into a defense of the idea that a group of people will run wild, unless they are held in check by the power of one strong leader.

2. Related to the challenge above, the Rhode Island House should adopt the rule already in place in the RI Senate, where the committee assignment of a member cannot be changed without the member’s consent (rule 5.2). This would eliminate the possibility of future repeats of Representative Patrick O’Neill being stripped of his Judiciary Committee seat, simply for exercising his basic rights as a legislator and calling for a bill to be voted on.

3. The language regarding discharge petitions in rule 20 should be streamlined, clarifying the meaning of potentially ambiguous statements like “but only one petition may be presented for a public bill or resolution during the course of a session” and thereby establishing that any bill bottled up in committee is eligible for a discharge petition. Also, the only-valid-after-50-legislative-days rule for discharge petitions should be eliminated.

The good news is that, because of the amended 12(a), House members can submit changes to the rules at any time before the 40th day of the session, and the leadership cannot instantly kill them on the basis that the rules bills for this session have already been heard. What happens after that, of course, is up to the members themselves.

Coming up in Committee: Seventeen Sets of Bills Being Heard by the RI General Assembly, February 10 – February 12

1. H5258/S0150: House and Senate Rules for 2015-2016 sessions, which will determine how business is conducted for the rest of the session. (H Rules; Tue Feb 10 & S Rules; Tue, Feb 10)

2. H5160: Requires that the town/city council and school committee of every municipality to be served by a proposed mayoral academy give explicit approval, before an academy can be opened. (H Health Education and Welfare; Wed, Feb 11)

3A. H5221: Limits electric rate increases to “two and one-half percent within any consecutive twenty-four month period”. (H Corporations; Tue, Feb 10)

3B. H5218 prohibits electric rates from being raised “in excess of five percent in any three year period without general assembly approval”. H5291 prohibits electric rates from being raised more than “five percent per year, unless the increase shall have been previously approved by affirmative action of the general assembly”. (H Corporations; Tue, Feb 10)

4. H5031: Proposed Constitutional Amendment (requiring voter ratification) extending the terms of State Representatives and Senators to four years, with a limit of “three full terms”. (H Judiciary; Tue, Feb 10)

5. H5124: “Any candidate for state or local office who has outstanding campaign finance reports or fines due the board of elections shall be ineligible to qualify for election to any state or local public office until all such reports are filed and/or all fines are paid. (H Judiciary; Tue, Feb 10)

Coming up in Committee, Wednesday, February 4: Penalties for Blocking a Highway

1. At present, the definition of disorderly conduct includes obstructing a “highway…to which the public or a substantial group 12 of the public has access”, punishable by imprisonment of up to 6 months, and a fine up to $500.

H5193 makes it a misdemeanor to “intentionally, knowingly, or recklessly, alone or with others, [restrict] traffic flow of a freeway”, punishable by a prison sentence of up to one year and a fine of up to $500. H5192 creates a crime of “unlawful interference with traffic” with reference to “any federal or state highway”, with a minimum prison sentence of 1 year for a first offense, 60 days of which cannot be suspended or deferred. (H Judiciary; Wed, Feb 4)

Coming up in Committee, Tuesday, February 3: House Rules for 2015-2016

2. H5258: Rules for the 2015-2016 Rhode Island House of Representatives. (H Rules; Tue, Feb 3)

There are at least three major changes of note:

  • A change to rule 12(f) makes clear that a vote to hold a bill for further study sends the bill to the Phantom Zone, where rank-and-file legislators are powerless to recall it, and only the super-powers of House leadership can bring it back.
  • A change to rule 12(a) gives House leadership the power to deny a hearing to a bill, according to a subjective criteria that “the issues presented…are substantially similar to those matters already heard”.
  • A change to rule 12(e) gives committee chairs, with approval of the Speaker, the power to cancel a bill hearing “at any time…[if] the bill is not ready to be heard in the committee”.

Coming Up in Committee: Twelve Sets of Bills to be Heard by the RI General Assembly, February 3 – February 5

3. H5077: Charges the RI Board of Education with establishing “state-wide goals that are school specific for increasing the number of graduates who 10 earn certificates and degrees at both two and four year post-secondary public institutions of higher education” and requires the Board to develop and make available data on “college access and completion data…that includes data on students’ educational experiences and outcomes from early childhood through higher education in Rhode Island public institutions of higher education and into the workforce”. The bill then lists four specific metrics related to post-secondary enrollment, and also includes a reporting requirement on “excess credits” defined as “credits which the student earned and which were not required for the degree or certificate”. (H Health, Education and Welfare; Wed, Feb 4)

4. H5074: Raises the minimum wage to $10.10 per hour starting in January 2016 (up from $9.00 per hour currently). (H Labor; Thu, Feb 5)

5. H5013: Requires that transportation be provided for students residing further than two miles away from their school. (H Health, Education and Welfare; Wed, Feb 4)

6. H5174: An extensive set of new laws regarding the relationship between health insurers and pharmacy providers.

Rhode Island’s Like the Sweeney Todd of Regulators

As the snow closes in on you, this morning, take a moment to read Steven Frias’s article about barber protectionism in Rhode Island:

Some government regulations are excessive because they are designed to protect special interest groups rather than the public. Free-market economist Milton Friedman once explained that “the pressure on the legislature to license an occupation rarely comes from the members of the public” — rather, “the pressure invariably comes from members of the occupation itself.” The history of Rhode Island’s regulation of barbers exemplifies this.

More than a century ago, lobbying efforts were made by a barbers’ trade association to pass legislation to regulate and license barbers. Although the legislation was justified as necessary to protect the public health, The Providence Journal reported that it was also based on some barbers’ “desire to make more money than in the past by driving” lower-cost barber shops “out of business.” In 1903, the legislation was passed. Soon thereafter, some barbershops were shut down.

The example is not only an excellent one for Milton Friedman’s lesson, but also as an illustration of how Rhode Island government is killing the local economy and why the U.S. economy continues to experience an anemic recovery that can only be hidden for a time by easy money and massive amounts of government debt.

For whatever reasons of their own, some barbers are able and willing to ply their trade for a lower cost than their competitors, and some customers are comfortable with the arrangement. In other words, the market for haircuts has a space for low prices and minimal frills. Barbers who prefer higher margins push government to interfere, erecting barriers and passing regulations that make it impossible to play in that space.

Now substitute “barber” for any other profession. During times of economic hardship or readjustment, these lower-end markets would naturally grow. People have less money to spend on things like haircuts, and others need the work that such things can provide. Moreover, this doesn’t have to simply be the case for established professions; a similar dynamic can come into play for creative new directions for the economy.

But the protectionists and progressives don’t like this much freedom. They’d rather you struggle and suffer (and require the junky-hit of public assistance) than that you have the space to make your own, free decisions. So, we get heavy licensing requirements, workplace regulations, minimum wages, and on and on, until it’s nearly impossible to attempt something new. That’s especially true if you’re not the sort of person with access to big investment dollars and existing business connections. (One might say that we’ve reached the point, even, of protectionism for entrepreneurs.)

P.S. — If you don’t get the Sweeney Todd reference, see this old grainy clip of the original Broadway cast for a sense of the plot.

House Corporations Bills for Tuesday, January 27 Still Worth Watching Even if Postponed

1A. H5099: Limits electric rate increases that can be approved by the public utilities commission to “no greater than five and 5 one-half percent (5.5%) or the percentage increase in the Consumer Price Index…unless the increase shall have been previously approved by affirmative action of the general assembly”. The issue of the effectiveness or ineffectiveness of price controls aside, it is a very basic violation of the principle of separation of powers for the General Assembly to make itself into a standalone board-of-appeals for other state agencies. A basic check on the power of the legislature is that it is not allowed to ignore the requirement (with a few expressed exemptions like proposing constitutional amendments) that its actions be submitted to the governor for approval or veto.

1B. H5079: Phases-in a requirement that, by 2035, 40% of the electricity sold at retail by large electric distribution entities be obtained from “eligible renewable energy resources”. The bill states that delays in the implementation schedule due to inadequate supply may not be for more than 3 years. Is this either technically or economically feasible?

1C. H5131: Prohibits electric distribution companies from charging “an interconnecting renewable energy customer for any upgrades to its electric power system that can and should be funded through rates assessed pursuant to its electric infrastructure, safety and reliability provision and plan, including specifically any maintenance, repair or upgrade of any component of the electric power system that has been deferred for more than thirty years.”

1D. H5175: Requires all public utilities in Rhode Island to “maintain a customer service operation physically located within the state which is reasonably staffed to meet the expectations of the public”. (H Corporations; Tue, Jan 27 postponed)

Coming Up in Committee Eventually: Six Sets of Bills to be Heard by the RI General Assembly, January 27 – January 29, Weather Permitting

2. H5077: Charges the RI Board of Education with establishing “state-wide goals that are school specific for increasing the number of graduates who 10 earn certificates and degrees at both two and four year post-secondary public institutions of higher education” and requires the Board to develop and make available data on “college access and completion data…that includes data on students’ educational experiences and outcomes from early childhood through higher education in Rhode Island public institutions of higher education and into the workforce”. The bill then lists four specific metrics related to post-secondary enrollment, and also includes a reporting requirement on “excess credits” defined as “credits which the student earned and which were not required for the degree or certificate”. (H Health, Education and Welfare; Wed, Jan 28)

3. H5074: Raises the minimum wage to $10.10 per hour starting in January 2016 (up from $9.00 per hour currently). (H Labor; Wed, Jan 28)

Sen. Walaska Frames Another Perfect Rhode Island Story

It almost slipped through as a cute story about a Rhode Island legislator speaking truth to bureaucracy about his unfriendly-to-business experience with the state Dept. of Environmental Management, but readers should pause for a moment on Katherine Gregg’s report about Warwick Senator William Walaska’s interaction with DEM leader Janet Coit.

As a business owner, Walaska had a bad experience, being treated unfairly by the agency, and there are two parts to the story that are so Rhode Island you want to cry.  Here’s the first:

The initial fine levied in April 2011: $49,988. 

With a lawyer in Senate Judiciary Chairman Michael McCaffrey’s law firm representing the company, the fine was subsequently reduced to $21,250 plus interest.

Clearly, when being a senator isn’t enough to get one out of a fine, bringing in a more-powerful senator as representation is always to be advised.

The Rhode Island quality of the story only gets deeper when one heads over to RIOpenGov and notices that Walaska’s company, WAL, Inc., has received thousands of dollars from state government — a total of $12,962 in 2010, 2013, and 2014, most of it from the Department of Corrections.

As readers may recall from the Current’s review of Sen. William Conley’s state contracts, as well as other state payments to members of the General Assembly (including Sen. McCaffrey, as it happens), it is at least the spirit of the state’s Code of Ethics that elected officials and their companies shouldn’t be receiving money from the state.

The as-yet-unwritten third part of Walaska’s Rhode Island story will come when the Ethics Commission either doesn’t bother to investigate or does so and reasons its way to a loophole for the politician.

Pearson’s School Construction Bill: General Assembly Still Not Getting It

The latest example of Rhode Island legislators’ not understanding the problems of the state comes via Senator Ryan Pearson (D, Cumberland, Lincoln) and his legislation to allocate a percentage point of the sales tax to school construction:

“No state has figured out how to do this,” Pearson said, referring to the financing of school construction. The Rhode Island plan is similar to one developed by Massachusetts, which dedicates 1 percent of the state’s sales tax to help pay for school facility improvements.   In fiscal 2016, this proposal would generate $81.4 million, according to Pearson. The annual increases would add an additional $5.7 million.

Another variable that Pearson doesn’t take into account, which I’ve noted recently, is enrollment.  By the Dept. of Education’s own report, Rhode Island schools already have 19% too much space, with projections for a continuing drop in enrollment.  How many millions of dollars are we going to spend maintaining schools that face inevitable consolidation?  How many more millions of dollars in economic activity are we going to forego in order to keep our sales tax rate so high?

If our state legislators really want to help cities, towns, and school districts, they should do two things.  The first is to start easing the burden that they place on the people of Rhode Island in taxes and regulations and let the economy grow, improving local tax revenue.  For example, Pearson’s plan would add $81.4 million at first, increasing to somewhere around $143 million over a decade, but the RI Center for Freedom & Prosperity’s dynamic projections for eliminating the sales tax showed around a $149 million increase in local tax revenue with an elimination of the sales tax ($109 million if it were reduced to 3%).

The second is to alleviate the burdens that state law places on schools and on the municipalities that house them.  A huge majority of local budgets goes to labor costs that are exacerbated by laws designed to push everything in the favor of the unions.  A more fair regime of labor laws would allow cities, towns, and school districts flexibility to finance infrastructure.

Anybody who pays attention knows the score, here.  Elected officials (often elected with union support) set up regular budget processes as a battle between labor and taxpayer, with the labor side parading children and the elderly as the victims of fiscal restraint, and let capital needs fester until they reach a point of such expense that there’s no choice but to borrow the money, which simply notches the labor-taxpayer battle up to a higher and higher level of expense, each year.  That can’t go on, no matter how many gimmicks elected officials pass into law.

Coming up in Committee: Five Bills to be Heard by the RI General Assembly, January 20 – January 22

1. H5054: Creates a Joint Committee of the Repealer within the legislature, composed of six members from both houses, to “compile suggestions for repeal of statutes, regulations, and executive orders received from citizens, businesses, and government agencies”. (H Judiciary; Tue, Jan 20)

2. H5051: “Neither the state of Rhode Island, nor its political subdivisions, shall engage in surveillance on any public ways of the state or its political subdivisions”. The bill then adds a list of six exceptions, the first of which is that the prohibition doesn’t apply where surveillance “is specifically authorized by statute”. (H Judiciary; Tue, Jan 20)

Edwards Dances Around the Fact That I’m Right

Rep. Edwards does the politician’s trick of talking all around the fact that a critic is telling the truth.

RhodeMap Brings Eminent Domain One Step Closer

Analysis of the state law purporting to protect Rhode Islanders from eminent domain suggests that RhodeMap RI makes government takings significantly easier.

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