Skip to main content
H 7366Food & Beverage

Food and Drugs - Sanitation in Food Establishments

Requires food businesses to pay an extra $50 annually to fund hospitality workforce training programs.

Held for study
Population
Affected
25
Introduced Jan 28, 2026Committee House Labor

Plain-English Summary

This legislation mandates that all registered food service establishments in Rhode Island pay an additional annual fee of $50. This revenue will be transferred to the Department of Labor and Training to be deposited into a newly created "hospitality training restricted receipt account." The funds in this account are designated specifically for providing workforce training grants to the hospitality industry, including certified food and alcohol safety training programs, which may be offered in multiple languages. The bill also protects these funds from being diverted to the state's general fund through indirect cost recoveries.

For younger readers

This new law changes the rules for places that sell food, like restaurants. It says that these businesses have to pay an extra $50 every year to the state government. The government will take this money and put it into a special piggy bank. The money in that piggy bank will then be used to pay for classes for workers in the restaurant business. These classes will teach them how to do their jobs safely, like how to handle food correctly, and the classes might be taught in different languages to help everyone learn.

Who & Where It Applies

Impacted groups
Food service establishmentsHospitality industry workersRestaurant ownersDepartment of Labor and TrainingDepartment of Health
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Food Service Establishments: $50/yr
Estimated revenue
$50/yr per food service establishment

Bill Analysis

Both viewpoints
For Progressives
  • Provides funding for workforce training, which can help low-wage workers in the hospitality industry gain skills and potentially advance their careers.
  • Specifically mentions offering training in multiple languages, which promotes inclusivity and supports immigrant workers who may face language barriers.
  • Creates a protected fund specifically for worker development that cannot be easily raided to balance the general state budget.
  • Imposes a flat fee that is regressive, charging small, struggling local businesses the same amount as large, profitable corporate chains.
  • The costs of the additional fee may be passed down to consumers, potentially raising prices on food for working-class patrons.
  • Grants might potentially be used to subsidize training costs for large corporations that should be paying for their own employee development.
For Conservatives
  • Supports the private sector by helping to develop a more skilled and safe workforce for the hospitality industry.
  • Utilizes a "restricted receipt account" which ensures the fees collected are used strictly for their intended purpose rather than general government spending.
  • Enhances food and alcohol safety, potentially reducing liability and risks for business owners.
  • Imposes a new financial mandate and fee on businesses, increasing the cost of operating in the state.
  • Expands government bureaucracy by creating a new grant program that requires state administration and oversight.
  • Represents a transfer of wealth where businesses are forced to fund state-directed training programs rather than managing their own internal training.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 10 additions

SECTION 1. Section 21-27-10 of the General Laws in Chapter 21-27 entitled "Sanitation in Food Establishments" is hereby amended to read as follows: 21-27-10. Registration of food businesses.

(a) No person shall operate a food business as defined in § 21-27-1 unless he or she annually registers the business with the state director of health; provided, that food businesses conducted by nonprofit organizations, hospitals, public institutions, farmers markets, roadside farm stands, or any municipality shall be exempt from payment of any required fee. Additionally, no license fee shall be required for an establishment that:

(1) Holds a Class C liquor license pursuant to § 3-7-8; and

(2) Complies with the license limits set forth in § 3-7-8(b).

(b) In order to set the registration renewal dates so that all activities for each establishment can be combined on one registration instead of on several registrations, the registration renewal date shall be set by the department of health. The registration period shall be for twelve (12) months commencing on the registration renewal date. Any renewal registration fee shall be at the full, annual rate regardless of the date of renewal. Any fee for a first-time application shall have the registration fee pro-rated based upon the date of issuance of registration. If the registration renewal date is changed, the department may make an adjustment to the fees of registered establishments, not to exceed the annual registration fee, in order to implement the changes in registration renewal date. Registrations issued under this chapter may be suspended or revoked for cause. Any registration or license shall be posted in a place accessible and prominently visible to an agent of the director.

(c) Registration with the director of health shall be based upon satisfactory compliance with all laws and regulations of the director applicable to the food business for which registration is required.

(d) The director of health is authorized to adopt regulations necessary for the implementation of this chapter.

(e) Classification for registration shall be as follows:

(1) In-state and out-of-state food processors that sell food in Rhode Island (Wholesale)

(2) Food processors (Retail)

(3) Food service establishments:

(i) 50 seats or less

(ii) More than 50 seats

(iii) Mobile food service units

(iv) Industrial caterer or food vending machine commissary

(v) Cultural heritage educational facility

(4) Vending machine sites or location:

(i) Three (3) or less machines

(ii) Four (4) to ten (10) machines

(iii) Eleven (11) or more machines

(5) Retail markets:

(i) 1 to 2 cash registers

(ii) 3 to 5 cash registers

(iii) 6 or more cash registers

(6) Retail food peddler (meat, seafood, dairy, and frozen dessert products)

(7) Food warehouses

(f) In no instance, where an individual food business has more than one activity eligible under this chapter for state registration within a single location, shall the business be required to pay more than a single fee for the one highest classified activity listed in subsection (e) of this section; provided, that, where several separate but identically classified activities are located within the same building and under the management and jurisdiction of one person, one fee shall be required. In each of the instances in this subsection, each activity shall be separately registered.

(g) Fees for registration of the above classifications shall be as set forth in § 23-1-54.

(h) The department shall also annually charge food service establishments, an additional fee of fifty dollars ($50.00) per year, which shall be transferred to the department of labor and training and shall be deposited into the hospitality training restricted receipt account, which shall be exempt from the indirect cost recovery provisions of § 35-4-27. Subject to appropriation by the general assembly, these funds shall be used to provide hospitality industry workforce training grants including, but not limited to, certified food and alcohol safety training programs offered in multiple languages.

SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds" is hereby amended to read as follows: 35-4-27. Indirect cost recoveries on restricted receipt accounts. Indirect cost recoveries of fifteen percent (15%) of cash receipts shall be transferred from all restricted receipt accounts, to be recorded as general revenues in the general fund. However, there shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions from nonprofit charitable organizations; (2) From the assessment of indirect cost- recovery rates on federal grant funds; or (3) Through transfers from state agencies to the department of administration for the payment of debt service. These indirect cost recoveries shall be applied to all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The following restricted receipt accounts shall not be subject to the provisions of this section: Executive Office of Health and Human Services HIV Care Grant Drug Rebates Health System Transformation Project Rhode Island Statewide Opioid Abatement Account HCBS Support-ARPA HCBS Admin Support-ARPA Department of Human Services Organ Transplant Fund Veterans’ home — Restricted account Veterans’ home — Resident benefits Pharmaceutical Rebates Account Demand Side Management Grants Veteran’s Cemetery Memorial Fund Donations — New Veterans’ Home Construction Commodity Supplemental Food Program-Claims Department of Health Pandemic medications and equipment account Miscellaneous Donations/Grants from Non-Profits State Loan Repayment Match Healthcare Information Technology Department of Behavioral Healthcare, Developmental Disabilities and Hospitals Eleanor Slater non-Medicaid third-party payor account Hospital Medicare Part D Receipts RICLAS Group Home Operations Group Home Facility Improvement Fund Commission on the Deaf and Hard of Hearing Emergency and public communication access account Department of Environmental Management National heritage revolving fund Environmental response fund II Underground storage tanks registration fees De Coppet Estate Fund Rhode Island Historical Preservation and Heritage Commission Historic preservation revolving loan fund Historic Preservation loan fund — Interest revenue Department of Public Safety E-911 Uniform Emergency Telephone System Forfeited property — Retained Forfeitures — Federal Forfeited property — Gambling Donation — Polygraph and Law Enforcement Training Rhode Island State Firefighter’s League Training Account Fire Academy Training Fees Account Attorney General Forfeiture of property Federal forfeitures Attorney General multi-state account Forfeited property — Gambling Department of Administration Health Insurance Market Integrity Fund RI Health Benefits Exchange Information Technology restricted receipt account Restore and replacement — Insurance coverage Convention Center Authority rental payments Investment Receipts — TANS OPEB System Restricted Receipt Account Grants Management Administration Office of Energy Resources OER Reconciliation Funding RGGI Executive Climate Change Coordinating Council Projects Electric Vehicle Charging Stations Operating and Maintenance Account Clean Transportation Programs Department of Housing Housing Resources and Homelessness Restricted Receipt Account Housing Production Fund Low-Income Housing Tax Credit Fund Department of Revenue Car Rental Tax/Surcharge-Warwick Share DMV Modernization Project Jobs Tax Credit Redemption Fund Legislature Audit of federal assisted programs Department of Children, Youth and Families Children’s Trust Accounts — SSI Military Staff RI Military Family Relief Fund RI National Guard Counterdrug Program Treasury Admin. Expenses — State Retirement System Retirement — Treasury Investment Options Defined Contribution — Administration - RR Violent Crimes Compensation — Refunds Treasury Research Fellowship Business Regulation Banking Division Reimbursement Account Office of the Health Insurance Commissioner Reimbursement Account Securities Division Reimbursement Account Commercial Licensing and Racing and Athletics Division Reimbursement Account Insurance Division Reimbursement Account Historic Preservation Tax Credit Account Rhode Island Cannabis Control Commission Marijuana Trust Fund Social Equity Assistance Fund Judiciary Arbitration Fund Restricted Receipt Account Third-Party Grants RI Judiciary Technology Surcharge Account Department of Elementary and Secondary Education Statewide Student Transportation Services Account School for the Deaf Fee-for-Service Account School for the Deaf — School Breakfast and Lunch Program Davies Career and Technical School Local Education Aid Account Davies — National School Breakfast & Lunch Program School Construction Services Office of the Postsecondary Commissioner Tuition Savings Program Fund Higher Education and Industry Center IGT STEM Scholarships Department of Labor and Training Job Development Fund Contractor Training Restricted Receipt Account Hospitality Training Restricted Receipt Account Workers’ Compensation Administrative Account Rhode Island Council on the Arts Governors’ Portrait Donation Fund Statewide records management system account

SECTION 3. This act shall take effect on January 1, 2027