Ray Sullivan

Nov. 7, 2007 MRW 
Sullivan looking for federal assistance for laid-off
Clariant employees

STATE HOUSE – Rep. Raymond J. Sullivan Jr. is seeking federal assistance for the 120 workers who will lose their jobs as a result of Clariant Corp.’s decision to end production of specialty chemicals at its Coventry plant.
After the announcement today, Representative Sullivan (D-Dist. 29, Coventry, West Greenwich) contacted U.S. Sen. Jack Reed’s office in an effort to obtain help for the affected employees through Trade Adjustment Assistance (TAA) program. The TAA program provides assistance with costs relating to the job searches, health insurance and relocation and provides retraining for workers whose jobs are lost because their company has outsourced them to another country. Clariant will be moving production of its products to Mexico and Germany.
The company, which produces specialty chemicals, will continue to operate its North American headquarters for its pigments and additives division in Coventry, but 120 of its 200 employees in the Coventry plant will be laid off when the company completes the production outsourcing, planned at the end of next year.
“This is obviously devastating news for these workers and their families,” said Representative Sullivan, who said many Clariant employees live in his district. “What I’m hoping is that we can get the federal assistance programs here to help them find new employment and help them keep their health insurance in the meantime. I’d like to make sure every possible program is made available to them to minimize the disruption to their lives and their families’ lives and to help them find other employment.”
The fact that the jobs are being moved out of the country rather than eliminated entirely might be helpful in getting aid for the workers, since the TAA program is meant to assist those whose jobs are lost to foreign production shifts, said Representative Sullivan.
One potential problem: The U.S. House of Representatives voted last week to reauthorize the TAA program, but the reauthorization bill faces a potential veto by the president.
“I sincerely hope that this program remains intact, because outsourcing is having a devastating effect on American workers. We need programs that help keep them working and supporting their families,” said Representative Sullivan.


July 20, 2007
Smarter Development for a Cleaner Bay Act becomes law
STATE HOUSE – The protection of water quality will have to be a priority during development under a new law that was sponsored by Rep. Raymond J. Sullivan Jr. and Sen. Paul E. Moura.
The Smarter Development for a Cleaner Bay Act (2007-H 6143Baa and 2007-S 0808Aaa) would require developers to make every effort to design their sites in ways that maintain the land’s recharge rate – the rate at which water seeps from the surface to the groundwater. The slow but steady recharge of most undeveloped soil filters pollutants from stormwater before it enters lakes, streams and the ocean. But water generally cannot permeate pavement, so such surfaces affect the recharge rates, especially when heavy rains run off the pavement and flood surrounding areas.
“Water is one of our most precious natural resources, and the Ocean State, of all places, should be doing everything it can to make sure that development is done in such a way that it doesn’t put our water at a higher risk for pollution,” said Senator Moura, a Democrat who represents District 18 in East Providence.
The legislation, which passed the Assembly on June 22 and was signed into law June 27, requires building projects that are already subject to stormwater review to incorporate modern non-structural, low-impact stormwater control techniques into their designs to the greatest extent possible. It also requires that those stormwater control techniques are designed to keep the site’s recharge rate the same, or near to it as is practicable, as it was before the development occurred.
There are many non-structural, low-impact techniques for maintaining recharge, including minimizing paved surfaces, protecting vegetation and natural drainage features and minimizing soil disturbance, grading and compaction during construction.
In many cases, non-structural controls have lower long-term costs because they are easier to maintain than structural stormwater controls like drains.
“This new law calls on developers to do their best to have the least impact possible on the water other natural resources as they build. In most cases, it doesn’t take much work or cost a lot. It’s a matter of choosing the options that do the least harm to our environment, which is something that can be appreciated by anyone who wants Rhode Island to have clean water now and in the future,” said Representative Sullivan, a Democrat who represents District 29 in Coventry and West Greenwich.
Under the new law, the Department of Environmental Management and the Coastal Resources Management Council will have to update Rhode Island’s Stormwater Design and Installation Standards Manual by July 1, 2008, with the new requirements. That manual contains the regulations that must be followed by all developers whose projects are subject to stormwater management review. The updates required by the legislation are consistent with an extensive review of the manual now being undertaken by DEM, and with regulations in other states.
The bill was backed by Environment Rhode Island, a statewide citizen environmental advocacy organization.
The bill was co-sponsored by Rep. Peter T. Ginaitt (D-Dist. 21, Warwick), Rep. David A. Segal (D-Dist. 2, Providence, East Providence), Rep. Victor G. Moffitt (R-Dist. 28, Coventry) and Rep. John A. Savage (R-Dist. 65, East Providence) in the House and Sen. V. Susan Sosnowski (D-Dist. 37, South Kingstown, New Shoreham, Sen. Daniel Da Ponte (D-Dist. 14, East Providence, Pawtucket), Sen. Daniel P. Connors (D-Dist. 19, Cumberland, Lincoln) and Sen. Joshua Miller (D-Dist. 28, Cranston, Warwick) in the Senate.


June 19, 2007 
Budget bill includes Sullivan initiative to end corporate tax shelter
Multi-state corporations will no longer be able to shirk income taxes

STATE HOUSE – Legislation originally introduced by Rep. Raymond J. Sullivan Jr. to close a tax loophole that allows large corporations to avoid paying taxes in Rhode Island was included in the state budget bill passed by the House on Friday.
The change is aimed at eliminating a corporate loophole the state affords to real estate investment trusts (REITs), companies set up to buy and manage properties.
REITs are often used by large companies, including Wal-Mart, to reduce their tax obligations. Corporations set up a REIT as a subsidiary of their company, and the REIT buys property and leases it to the corporation. The corporation is then able to write off the rent as a business expense. Meanwhile, state law allows the REIT to pay a tiny fraction of the regular corporate income rate on its income from the rent. While other companies pay a 9-percent corporate income tax in Rhode Island, REITs pay just 10 cents on every $100 of profit, or .1 percent.
The language included in the budget bill eliminates the special low income tax rate for REITS, so they would be required to pay Rhode Island’s full corporate income tax like all other corporations.
“It doesn’t make any sense for us to leave this loophole in our laws. When we have a budget deficit of more than $450 million, we can’t afford to allow huge corporations like Wal-Mart to continue using accounting tricks to get out of paying taxes,” said Representative Sullivan, a Democrat who represents District 29 in Coventry and West Greenwich. “We need them to pay their fair share in Rhode Island, just as smaller businesses and residents do. When they don’t, it’s the mom-and-pop businesses and the homeowners who are left to shoulder the load of paying for government services.”
Representative Sullivan said he appreciates that many of the corporations large enough to take advantage of this law are also large employers, but said there’s nothing linking the tax break to employment, so there’s no guarantee that the state is getting anything in return for the break. There’s also no guarantee about the quality or pay rate of any job that company provides.
“If we want to give large employers a tax break that would be different because that kind of tax break would be created in such a way that it would be linked to a guaranteed number and quality of jobs, so we could make sure the state is getting its money’s worth. But REIT tax breaks don’t have anything to do with job development, so the state is just giving these big businesses a break without getting anything in return,” said Representative Sullivan.
Attorney General Patrick C. Lynch supported the change.
“Real Estate Investment Trusts are illegal in many states but in Rhode Island wealthy corporations can still use them to pay lower taxes than the average working couple,” Lynch said when Representative Sullivan initially filed the bill. “That is wrong. We need to be sure that our tax burdens are not magnified by these loopholes that are in no way tied in to any financial benefit for the State of Rhode Island.”
The governor has indicated he will veto the budget bill when it reaches his desk, but the General Assembly is expected to override his veto.


June 7, 2007
House passes Smarter Development for a Cleaner Bay Act

STATE HOUSE – The House of Representatives today unanimously passed legislation sponsored by Rep. Raymond J. Sullivan Jr. aimed at protecting water quality whenever new development occurs.
The Smarter Development for a Cleaner Bay Act (2007-H 6143 A) would require developers make every effort to design their sites in ways that maintain the land’s recharge rate – the rate at which water seeps from the surface to the groundwater. The slow but steady recharge of most undeveloped soil filters pollutants from stormwater before it enters lakes, streams and the ocean. But water generally cannot permeate pavement, so such surfaces affect the recharge rates, especially when heavy rains run off the pavement and flood surrounding areas.
“Protecting our water has to be one of the highest priorities when land is developed,” said Representative Sullivan, a Democrat who represents District 29 in Coventry and West Greenwich. “There are lots of ways that the impact of development can be reduced, and this legislation is aimed at making sure that developers take advantage of all the available means to lessen their project’s impact and prevent it from becoming a source of water pollution.”
The legislation requires building projects that are already subject to stormwater review to incorporate modern non-structural, low-impact stormwater control techniques into their designs to the greatest extent possible, and that they are designed to keep the recharge rate the same, or near to it as is practicable, as it was before the development occurred.
There are many non-structural, low-impact techniques for maintaining recharge, including minimizing paved surfaces, protecting vegetation and natural drainage features and minimizing soil disturbance, grading and compaction during construction.
In many cases, non-structural controls have lower long-term costs because they are easier to maintain than structural stormwater controls like drains.
“We need to take advantage of every available opportunity to prevent pollution and to protect our limited natural resources. It’s not too much to ask of developers to expect them to do their best to see that their proposals have the least impact possible on one of our most precious resources, our water,” said Representative Sullivan.
The legislation would require that the Department of Environmental Management and the Coastal Resources Management Council update Rhode Island’s Stormwater Design and Installation Standards Manual by July 1, 2008, with the new requirements. That manual contains the regulations that must be followed by all developers whose projects are subject to stormwater management review. The updates required by the legislation are consistent with an extensive review of the manual now being undertaken by DEM, and with regulations in other states.
The bill is backed by Environment Rhode Island, a statewide citizen environmental advocacy organization.
The bill is co-sponsored by Rep. Peter T. Ginaitt (D-Dist. 21, Warwick), Rep. David A. Segal (D-Dist. 2, Providence, East Providence), Rep. Victor G. Moffitt (R-Dist. 28, Coventry) and Rep. John A. Savage (R-Dist. 65, East Providence). It will now be forwarded to the Senate, where Sen. Paul E. Moura (D-Dist. 18, East Providence) has sponsored similar legislation (2007-S 0808).


May 22, 2007 
Sullivan bill would end corporate tax shelter
Legislator says law lets big companies avoid paying their share

STATE HOUSE – Rep. Raymond J. Sullivan Jr. has introduced legislation aimed at stopping large corporations from using a tax shelter to avoid paying taxes in Rhode Island.
The bill is aimed at eliminating a tax break the state affords to real estate investment trusts (REITs), companies set up to buy and manage properties.
REITs are often used by large companies, including Wal-Mart, to reduce their tax obligations. Those corporations set up a REIT as a subsidiary of their corporation, and the REIT buys property and leases it to the corporation. The corporation is then able to write off the rent as a business expense. Meanwhile, state law allows the REIT to pay a tiny fraction of the regular corporate income rate on its income from the rent. While other companies pay a 9-percent corporate income tax in Rhode Island, REITs pay just 10 cents on every $100 of profit, or .1 percent.
Representative Sullivan’s bill (2007-H 6333) would eliminate the special low income tax rate for REITS, so they would be required to pay Rhode Island’s full corporate income tax like all other corporations.
“Why should huge corporations like Wal-Mart get away without paying their fair share in taxes while the rest of Rhode Island, both residents and smaller businesses, are paying theirs?” said Representative Sullivan, a Democrat who represents District 29 in Coventry and West Greenwich. “This tax shelter helps the rich get richer, leaving everyone else to carry the burden of paying for government services. At a time when the state is facing a huge budget deficit, we can’t afford to continue giving them this free ride.”
Representative Sullivan said he appreciates that many of the corporations large enough to take advantage of this law are also large employers, but said there’s nothing linking the tax break to employment, so there’s no guarantee that the state is getting anything in return for the break. There’s also no guarantee about the quality or pay rate of any job that company provides.
“While the presence of big corporations in Rhode Island can mean jobs, there’s no promise of that in this tax break. We have no way to make sure that the state is making up the difference in the tax revenue we’re forfeiting through this law. This law has nothing whatsoever to link it to jobs that the company must provide, so it’s just a way for big companies to avoid taxes at other taxpayers’ expense,” said Representative Sullivan. “Homeowners and business owners in our state are struggling to pay their taxes, and the state is facing a deficit of upwards of $400 million. We can’t afford to let Big Business get away with this tax shell game.”
Attorney General Patrick C. Lynch is supporting the legislation.
“Real Estate Investment Trusts are illegal in many states but in Rhode Island wealthy corporations can still use them to pay lower taxes than the average working couple,” Lynch said. “That is wrong. We need to be sure that our tax burdens are not magnified by these loopholes that are in no way tied in to any financial benefit for the State of Rhode Island.”
The bill is co-sponsored by House Finance Committee Chairman Steven M. Costantino (D-Dist. 8, Providence), Rep. J. Patrick O’Neill (D-Dist. 59, Pawtucket), Rep. Raymond C. Church (D-Dist. 48, North Smithfield, Burrillville) and Rep. Timothy A. Williamson (D-Dist. 25, Coventry, West Warwick). Companion legislation (2007-S 0974) has been filed in the Senate by Senate Finance Committee Chairman Stephen D. Alves (D-Dist. 9, West Warwick).


April 26, 2007 
House passes Sullivan bill to extend pilot program to use unneeded prescription drugs at nursing homes

STATE HOUSE – The House voted Wednesday to approve legislation sponsored by Rep. Raymond J. Sullivan Jr. to extend a pilot program to allow for the redistribution of unused medications at nursing homes and assisted living facilities in Rhode Island.
The bill (2007-H 5850 A) provides a two-year extension on a program that was set up as a result of legislation that Representative Sullivan (D-Dist. 29) sponsored in 2005 to make use of prescription drugs that otherwise go to waste.
The bill also creates a legislative oversight commission to monitor the implementation of the program, and adds a requirement that the Department of Health notify every nursing home and assisted living facility in the state about the program, and post a sign in each to notify patients and residents about the program.
The Utilization of Unused Prescription Drugs Act created a voluntary pilot program allowing nursing homes, assisted-living centers, community health organizations and prescription drug manufacturers to transfer unused, sealed medications to seniors who are eligible to receive Medicaid or Medicare, or otherwise are uninsured.
Before the passage of that act in 2005, when a patient at a nursing home or assisted-living center in Rhode Island passed away or stopped using a particular drug for any reason, his or her unused prescription medications by law had to be discarded. The pilot program was to end this year, but this bill extends it to Jan. 1, 2009.
The pilot program allows the medications to be donated to participating pharmacies where they would be distributed to uninsured senior citizens. All prescriptions must be checked for safety prior to distribution.
Representative Sullivan said he would like to see more awareness about the program’s availability and better participation by nursing homes and other health care facilities.
“This is a common-sense idea that would stop waste while assisting elderly people who struggle with their prescription costs. I think it would be very popular with anyone struggling to afford their medications, but it requires the cooperation and participation of nursing homes and facilities to work,” said Representative Sullivan, whose district is in Coventry and West Greenwich. “I think more needs to be done to tell the facilities and their residents that this program exists and to encourage them to participate.”
He said he expects the legislative oversight commission to monitor whether the program is being marketed aggressively enough to the facilities, and whether any improvements should be made.
The bill will now be sent to the Senate for consideration.


March 29, 2007
Kent County Water Authority study commission issues final report
Commission recommends regional planning for supply and development, as well as pursuit or more water sources
STATE HOUSE – The special legislative commission that has been studying issues related to the Kent County Water Authority issued its final report today, making several recommendations that could help the authority manage its supply needs.
The report concluded that while there are “significant challenges to be addressed” there is no immediate crisis for the water authority. However, there is a delicate balance between the projected supply and demand for water in the near and distant future, and any unexpected development, including drought, could easily tip that balance for the worse.
Among the report’s recommendations is that the authority consider additional connections to the Providence water system, develop well fields in the Mishnock and Big River areas and reassess the need for the unbuilt Big River Reservoir project.
The commission also recommended administrative and regulatory steps that could help KCWA meet the demand for water, including better consideration of the local water supply in economic development and land use planning in the region, possible restructuring of the authority’s administration and mechanisms that spread the cost for water resource and supply development among beneficiaries outside the KCWA service area.
The commission also concluded that the KCWA would not be able to work alone to plan for adequate water supply in the future, since many of the underlying causes of conditions are beyond its control.
“Water doesn’t know any boundaries, so shortages that occur in Kent County could be caused, shared or solved by neighboring water supplies. We really need to focus our efforts on a more regional scale to effectively plan ways to ensure that our area has the water it needs now and in the future,” said Sen. J. Michael Lenihan (D-Dist. 35, East Greenwich, North Kingstown, Warwick), who co-chaired the commission with Rep. Raymond J. Sullivan (D-Dist. 29, Coventry, West Greenwich).
Both the House and the Senate are now working to do exactly that – address water supply problems on a statewide basis and develop policies that reflect water use and needs of all water supply systems in the state together, rather than separately. Both co-chairmen of the KCWA study commission are involved in those efforts. Senator Lenihan is chairman of the Senate Government Oversight Committee, which recently concluded joint hearings with the Senate Environment and Agriculture Committee on the issue. Representative Sullivan is the vice chairman of House commission that recently began studying statewide water resources and distribution.
One theme to the report is that development has a profound effect on water supply, so water supply should be a consideration in all development plans for the area. It was the expansion of Amgen’s pharmaceutical manufacturing facility in West Greenwich, and the KCWA’s difficultly in committing to supplying water to the plant, that prompted the creation of study commission.
“Kent County is an area that is developing rapidly both in terms of population and industry. While that growth is what drives the area’s economic engine, none of it can happen if there’s not enough water for it. The water supply must be a consideration in all development plans from now on,” said Representative Sullivan. “It’s important that the state begin to tie its economic development strategy to the recognition of our consumption of natural resources. For instance, Amgen, in recognition of our water needs, took steps to recycle and reuse more of the potable water it was drawing off the system. We need to make it part of our economic development strategy to encourage more companies to make that sort of effort.”
Commission members have been invited to contribute additional written comments that will be added to the report, which will be available on the General Assembly’s Web site, www.rilin.state.ri.us.
Senator Lenihan added, “Our commission’s charge was to investigate all aspects of the Kent County Water Authority. My personal opinion is that they are doing a fine job within the context of some restrictions on their ability to act, including a state permitting system that is uncoordinated, inconsistent and sometimes ineffective.”


March 27, 2007 
Special Commission to study Kent County Water Authority to consider final report tomorrow

STATE HOUSE – The special legislative commission that has studied issues involving the Kent County Water Authority will consider its final report at a meeting this week.
The meeting is scheduled Thursday, March 29, at 3 p.m. in Room 313 in the State House.
The commission is co-chaired by Rep. Raymond J. Sullivan Jr. (D-Dist. 29, Coventry, East Greenwich) and Sen. J. Michael Lenihan (D-Dist. 35, East Greenwich, North Kingstown, Warwick). The commission began studying issues related to the Kent County Water Authority in November 2005.


March 14, 2007 
Sullivan calls for reinstatement of info specialists for seniors, disabled

STATE HOUSE – Saying the proposal is a short-sighted move that will jeopardize the health and quality of life of Rhode Island’s seniors and disabled citizens, Rep. Raymond J. Sullivan Jr. is calling for the reinstatement of seven community information specialists in the 2008 budget proposal.
The cuts in Gov. Donald L. Carcieri’s budget proposal would eliminate more than half of the state’s 13 community information specialists, who work out of senior centers and make themselves available at local and regional senior centers to help connect senior citizens and the disabled with social services and other resources. They also make house calls when necessary.
The proposed cuts would leave six remaining specialists to reach out to a population of an estimated 152,000 Rhode Islanders age 65 and over, and thousands more disabled Rhode Islanders.
“This is a very vulnerable population, many of whom do not have access to the Internet and other information sources that other members of the community might regularly use. They are well-served by a system in which an individual familiar with the available resources will speak to them one-on-one about their needs. Without that contact, I suspect many seniors and disabled people will simply be left without that information, and without services,” said Representative Sullivan in a letter sent today to Governor Carcieri and House Finance Committee Chairman Steven M. Costantino, whose committee must now weigh the budget proposal.
Although the cuts may result in fewer personnel costs, the proposal could result in higher health care costs for the state, and would certainly come at a social cost, said Representative Sullivan.
“Letting [seniors and the disabled] go without services will create greater long-term strains on the state’s finances. Most notably, it could mean that many people will go without preventative health care, resulting in poor health for them and higher costs due to increased demand for more expensive acute-care services and emergency services,” said Representative Sullivan in the letter. “It would also mean that many people would not know how to take advantage of programs that provide services within the community so they can remain in a community setting rather than in an expensive nursing facility.”
The cuts were brought to Representative Sullivan’s attention by Patricia Shurtleff, Human Services Director for the Town of Coventry, which currently shares a community information specialist with West Greenwich, Exeter and Foster.


Feb. 28, 2007
House to honor Coventry Rams football champs
Team will be Sullivan’s guests at State House next week

STATE HOUSE – The Coventry Rams, national champions of the American Youth Football & Cheer Organization, will be honored by the House of Representatives next week.
The team, which won the championship in Florida in December, has been invited to the House by Rep. Raymond J. Sullivan (D-Dist. 29) and will be recognized during the 4 p.m. House session on Wednesday, March 7. Representative Sullivan will also present the 8th and 9th graders with citations for their achievement.
The team was originally scheduled to visit the State House on Feb. 14, but that day’s House session was canceled due to inclement weather.
“These kids worked very hard all season and they deserve to be recognized and honored for their accomplishment,” said Representative Sullivan, whose district is in Coventry and West Greenwich. “It took a lot of discipline and effort on their part to win that championship, and they, their coaches and their parents made a lot of sacrifices to get them there. I’m looking forward to having the opportunity to congratulate them.”


Feb. 6, 2007 
Sullivan submits bill on insurance for National Guard, Military Reserve
Legislation would let activated Guard and Reserve members who are municipal employees keep their health insurance

STATE HOUSE – Rep. Raymond J. Sullivan Jr. has introduced legislation that would allow National Guard members and reservists employed by Rhode Island cities and towns to keep their municipal health insurance plans when they are called to active military service.
The National Guard and the Reserves offer health insurance to activated members, but that insurance sometimes does not offer the level of coverage that they have from the plans offered by their civilian jobs. And switching insurance just for their time on active duty can be a big hassle, especially if the Guard member or reservist has a family on that insurance plan. That disruption is repeated when Guard members and reservists come home and have to switch back to the insurance offered through their employers.
“Switching insurance sometimes means that a family can no longer continue going to the doctors they’ve been seeing for years. It could mean they no longer have the coverage they’re used to having. Activated Guard members and reservists and their families have enough disruption and worry in their lives without having to deal with changes in their health insurance. This bill would help provide their families with a little stability and show them we support them and appreciate their sacrifices,” said Representative Sullivan, a Democrat who represents District 29 in Coventry and West Greenwich.
The bill would apply to all municipal employees who are National Guard members or reservists and are called to active duty for more than 90 days. The legislation would entitle them to the same employee and dependent health care benefits as other employees of the city or town throughout their activation, under the same terms they had at the time of their activation. A similar law already exists for state employees.
There would be a cost to cities and towns when employees are called to active service. However, since the affected Guard members and reservists are public employees both when they are activated and in their civilian lives, the employer’s share of their health insurance is paid for by taxpayers regardless of whether it comes from the National Guard or Reserve, or the cities or towns that employ them.
“Rhode Islanders have shown that we support our troops and their families. We already do this for state employees,” said Representative Sullivan. “This is one way we can help our troops, by allowing them and their families to continue using the insurance they’re used to, without interruption.”
The bill (2007-H 5091) has been transmitted to the House Committee on Municipal Government and is co-sponsored by Rep. Kenneth Carter (D-Dist. 31, North Kingstown, Exeter), Rep. Raymond E. Gallison Jr. (D-Dist. 69, Bristol, Portsmouth), Rep. David A. Caprio (D-Dist. 34, Narragansett, South Kingstown) and Rep. John J. Loughlin II (R-Dist. 71, Tiverton, Little Compton, Portsmouth).