2012 -- H 8024

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LC02179

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- ADMINISTRATIVE

PROCEDURES

     Introduced By: Representatives Serpa, Morgan, Trillo, Ferri, and Keable

     Date Introduced: March 29, 2012

     Referred To: House Small Business

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 42-35.1-3 and 42-35.1-4 of the General Laws in Chapter 42-35.1

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entitled "Small Business Regulatory Fairness in Administrative Procedures" are hereby amended

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to read as follows:

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     42-35.1-3. Economic Impact statements. -- (a) Prior to the continued enforcement of

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any regulation or the adoption of any proposed regulation that may have an adverse impact on

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small businesses, excluding those businesses defined in subsection 42-35-3.3(d), each agency the

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economic development corporation shall prepare, in congruence with the analysis required in

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section 42-35-3.3, an economic impact statements that includes the following:

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      (1) An identification and estimate of the number of the small businesses subject to the

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existing or proposed regulation;

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      (2) The projected reporting, recordkeeping, and other administrative costs required for

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compliance with the existing or proposed regulation, including the type of professional skills

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necessary for preparation of the report or record;

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      (3) A statement of the effect or probable effect on impacted small businesses;

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      (4) A description of any less intrusive or less costly alternative methods of achieving the

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purpose of the existing or proposed regulation.

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      (b) The economic impact statement required herein shall be published in guide form as

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well as posted on the department of administration and the of economic development corporation

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websites. The guide should be published and/or posted on or around the same date as the

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regulation change and shall include a description of actions need by the small business to meet

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the requirement of the regulation.

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     42-35.1-4. Regulatory flexibility -- Flexibility analysis required. -- (a)

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Notwithstanding any general or public law to the contrary, prior to the adoption of any proposed

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regulation on and after January 1, 2010, each agency the economic development corporation shall

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prepare a regulatory flexibility analysis in which the agency economic development corporation

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shall, where consistent with health, safety, environmental, and economic welfare consider

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utilizing regulatory methods that will accomplish the objectives of applicable statutes while

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minimizing adverse impact on small businesses. The agency economic development corporation

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shall consider, without limitation, each of the following methods of reducing the impact of the

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proposed regulation on small businesses:

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      (1) The establishment of less stringent compliance or reporting requirements for small

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businesses;

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      (2) The establishment of less stringent schedules or deadlines for compliance or

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reporting requirements for small businesses;

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      (3) The consolidation or simplification of compliance or reporting requirements for small

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businesses;

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      (4) The establishment of performance standards for small businesses to replace design or

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operational standards required in the proposed regulation; and

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      (5) The exemption of small businesses from all or any part of the requirements contained

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in the proposed regulation.

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     (6) The fact that the benefit conferred by the regulation is outweighed by the cost.

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      (b) Prior to the adoption of any proposed regulation that may have an adverse impact on

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small businesses each agency shall notify the economic development corporation of its intent to

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adopt the proposed regulation. The economic development corporation shall advise and assist

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agencies in complying with the provisions of this section.

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     SECTION 2. Chapter 42-35.1 of the General Laws entitled "Small Business Regulatory

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Fairness in Administrative Procedures" is hereby amended by adding thereto the following

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section:

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     42-35.1-4.1. Periodic review of rules. – (a) Within four (4) years of the enactment of

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this law, the economic development corporation shall review all agency rules existing at the time

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of enactment to determine whether such rules should be continued without change, or should be

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amended or rescinded, to minimize economic impact or the cost of the rules on small businesses

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in a manner consistent with the stated objective of applicable statutes. If the head of the economic

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development corporation determines that completion of the review of existing rules is not feasible

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by the established date, the economic development corporation shall publish a statement

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certifying that determination. The economic development corporation may extend the completion

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date by one year at a time for a total of not more than five (5) years. Within ninety (90) days of a

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request made by the economic development corporation, each agency shall submit a list of the

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rules and regulations requested together with any modification or amendments thereto.

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     (b) Rules adopted after the enactment of this law shall be reviewed every five (5) years

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after publication of such rules in final form to ensure that they minimize economic impact on

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small businesses in a manner consistent with the stated objectives of applicable statutes.

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     (c) In reviewing rules to minimize the cost or economic impact of the rule on small

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businesses, the economic development corporation shall consider the following factors:

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     (1) The continued need for the rule;

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     (2) The nature of complaints or comments received concerning the rule from the public;

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     (3) The complexity of the rule;

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     (4) The extent to which the rule overlaps, duplicates, or conflicts with other federal, state,

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and local governmental rules; and

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     (5) The length of time since the rule has been evaluated or the degree to which

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technology, economic conditions, or other factors have changed in the area affected by the rule.

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     (d) Any agency rule which the economic development corporation determines should not

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be continued without change, or should be amended or rescinded in accordance with subsection

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(a) hereof shall be suspended from continued enforcement unless and until the general assembly

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shall have taken appropriate legislative action to continue the enforcement of such rule.

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     (e) In conducting its review, the economic development corporation shall have access to

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any information possessed by the agency.

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     SECTION 3. This act shall take effect upon passage.

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LC02179

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- ADMINISTRATIVE

PROCEDURES

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     This act would require a cost/benefit analysis and periodic review of all regulations

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governing or impacting small businesses.

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     This act would take effect upon passage.

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LC02179

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