2012 -- S 2355

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LC01375

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - ADMINISTRATIVE

PROCEDURES

     Introduced By: Senators Lynch, Perry, Tassoni, Miller, and Gallo

     Date Introduced: February 14, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-35-3.3 of the General Laws in Chapter 42-35 entitled

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"Administrative Procedures" is hereby repealed.

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     42-35-3.3. Regulations affecting small business. -- (a) Prior to the adoption of any

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proposed regulation each agency shall notify the governor's office and the economic development

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corporation of its intent to adopt the proposed regulation. The agency shall submit the proposed

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regulation to both the governor's office and the economic development corporation at a time

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reasonably in advance of the commencement of the formal rule-making process, but in any case

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no later than the date of public notice. If the governor's office or the economic development

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corporation shall, within fifteen (15) days of receipt of such notice, identify a proposed regulation

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as one that may have a significant adverse economic impact on small businesses, the proposing

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agency shall prepare a regulatory flexibility analysis in which the agency shall, where consistent

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with health, safety and environmental and economic welfare, consider utilizing regulatory

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methods that will accomplish the objectives of applicable laws while minimizing adverse impact

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on small business. The small business advocate shall identify and convey specific concerns raised

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by small business in providing notice to the agency proposing the regulation, and shall, when

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appropriate, act as advocate for a small business raising concerns hereunder. To the extent that a

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proposed regulation is required to be promulgated by a state agency in order to comply with a

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requirement for the establishment of specific standards under federal law, such regulations or

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nondiscretionary portions thereof shall not be subject to the requirements of this section. The

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analysis shall, to the extent ascertainable, include the following:

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

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proposed regulation;

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

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compliance with the proposed regulation, including the type of professional skills necessary for

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preparation of the report or record;

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

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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 proposed regulation.

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      (b) The agency shall consider, without limitation, each of the following methods of

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reducing the impact of the 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 requirement contained

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in the proposed regulation.

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      (c) The economic development corporation shall advise and assist agencies in complying

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with the provisions of this section and provide such data as is available to the corporation in order

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to support the intent of this section and develop alternatives for consideration by the proposing

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agency. The economic development corporation shall provide written comment specifically

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detailing any information that relates to the components of analysis in subdivisions (a)(1) -- (a)(4)

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above and, such alternatives as they may have identified pursuant to subdivisions (b)(1) -- (b)(5)

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above. Such review and advice shall be completed within the notice and review periods required

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by this chapter and shall not serve to delay the promulgation of rules.

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      (d) The following professional and business activities shall not be considered a small

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business for purposes of this section:

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      (1) Financial institutions including banks, trusts, savings and loan associations, thrift

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institutions, consumer and industrial finance companies, credit unions, mortgage and investment

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bankers, and stock and bond brokers;

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      (2) Insurance companies, both stock and mutual;

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      (3) Mineral, oil and gas brokers; subdividers and developers;

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      (4) Landscape architects, architects and building designers;

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      (5) Entities organized as nonprofit institutions;

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      (6) Entertainment activities and productions including motion pictures, stage

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performances, television and radio stations, and production companies;

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      (7) All utilities, water companies, and power transmission companies, except electrical

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power generating transmission companies providing less than four and one-half (4.5) kilowatts;

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      (8) All petroleum and natural gas producers, refiners and pipelines.

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     SECTION 2. Section 42-35.1-3 of the General Laws in Chapter 42-35.1 entitled "Small

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Business Regulatory Fairness in Administrative Procedures" is hereby amended to read as

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follows:

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     42-35.1-3. Economic Impact statements. -- (a) Prior to the adoption of any proposed

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regulation that may have an adverse impact on small businesses, excluding those businesses

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defined in subsection 42-35-3.3(d), (c) of this section each agency shall prepare, in congruence

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with the analysis required in section 42-35-3.3, an economic impact statements that includes the

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following:

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

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proposed regulation;

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

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compliance with the proposed regulation, including the type of professional skills necessary for

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preparation of the report or record;

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      (3) A statement of the 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 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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     (c) The following professional and business activities shall not be considered a small

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business for purposes of this section:

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     (1) Financial institutions including banks, trusts, savings and loan associations, thrift

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institutions, consumer and industrial finance companies, credit unions, mortgage and investment

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bankers, and stock and bond brokers;

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     (2) Insurance companies, both stock and mutual;

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     (3) Mineral, oil and gas brokers;

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     (4) Subdividers and developers;

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     (5) Landscape architects, architects and building designers;

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     (6) Entities organized as nonprofit institutions;

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     (7) Entertainment activities and productions including motion pictures, stage

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performances, television and radio stations, and production companies;

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     (8) All utilities, water companies, and power transmission companies, except electrical

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power generating transmission companies providing less than four and one-half (4.5) kilowatts;

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     (9) All petroleum and natural gas producers, refiners and pipelines.

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     SECTION 3. This act shall take effect upon passage.

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LC01375

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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 make technical amendments to the general laws by deleting duplicative

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language in the section concerning regulation of small businesses under the administrative

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procedures act and inserting similar language in chapter 42-35.1 which addresses small business

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regulatory fairness under said act.

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     This act would take effect upon passage.

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LC01375

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