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RIMA LEGISLATIVE UPDATE

The Rhode Island General Assembly’s 2009 session was poised for an adjournment during the wee hours of June 26^th, but those plans came to a halt following a breakdown in communications between House and Senate leaders. The lack of coordination between the House and Senate left a number of pieces of legislation unresolved, including RIMA’s proposal (House Bill 6159) to gain an exemption from the state’s small group health insurance statute. The legislation, sponsored by House Majority Leader Gordon Fox, continued to be opposed by the Office of Health Insurance Commissioner and the Rhode Island Chamber of Commerce Coalition. Legislative leaders have indicated a return to business later this summer, and perhaps again in September, to address outstanding issues. RIMA is continuing its lobbying effort in support of H6159.

On a positive note, the General Assembly passed its FY2010 budget in late June. The $7.81 billion spending plan preserves a number of provisions that were advocated for by RIMA. These provisions include maintaining the flat income tax option for certain taxpayers, keeping Rhode Island income tax burden more in line with neighboring states. RIMA was also successful in working with business leaders to avoid any increases in broad-based taxes, as well as fighting off proposals to streamline the state’s sales tax.

In the coming weeks, RIMA’s legislative priorities are focused on House Bill 6159. Although the opposition to the legislation is deep, RIMA will continue to work with its legislative supporters in an attempt to bring the issue forward for a vote. All RIMA members are urged to contact their Representatives and Senators to voice their support of H6159.

Please Call John Grady at 401.751.0160 or email him at rima@mfgri.com for further details.