The Rhode Island legislature ended their 2026 session late into the evening of June 11th. In the final flurry of bills being exchanged between the House and Senate, several will impact Rhode Island businesses. While are still waiting for the final action, meaning approval from Governor McKee, but here are several pieces of legislation that passed the House and Senate during the 2026 session:

1. A so-called Millionaire’s Tax was included in the FY27 budget bill. Differing from Governor McKee’s immediate addition of a 3% surtax on all income over $1 million, the House version will instead roll the 3% hike over a three-year period. The rates will be 6.95% in 2027, 7.95% in 2028, and will finally reach the 8.95% rate in 2029. NFIB strongly opposed this tax hike that will impact Rhode Island pass-through entity small businesses too, not just wealthy earners. This will result in less money to reinvest in the business and could potentially subject owners to the higher rates when they retire and sell the business.

1. Building energy reporting requires residential and commercial buildings larger than 25,000 square feet to report their energy usage. This will apply to buildings of 50,000 square feet or more by May 15, 2028, then buildings of 25,000 square feet or more must report their usage to the Office of Energy Resources (OER) by May 15, 2030.  The intrusive new law allows OER to later develop escalating fines to enforce this burdensome policy. NFIB submitted testimony in opposition to energy reporting requirements. This legislation awaits a signature from the Governor.

• Grocery store self-checkout limits the number of automated checkout kiosks. It sets a ratio of at least 1 manual checkout for every 3 automated stations. It also mandates employees assigned to oversee automated kiosks may perform no other duties. If a store is in violation of this law, the penalty shall be a fine equal to the payment of a 4-hour shift based on the highest wages of a retail clerk (no higher than $500). The law also includes a retaliation clause exposing employers to potential legal action. NFIB opposed these bills stating these are the results of the state constantly raising the minimum wage (currently set to hit $17 per hour on 1/1/27). Automation occurs when it becomes too cost prohibitive to hire additional clerks. This bill has not yet been signed by Governor McKee.

• Additionally, several health insurance-related mandates passed that will further drive up the cost of health insurance premiums. Rhode Island already has one of the highest numbers of health mandates that go far beyond what the federal Affordable Care Act requires.