2014 -- S 2480 SUBSTITUTE A

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LC004240/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- REGULATORY FAIRNESS IN

ADMINISTRATIVE PROCEDURES

     Introduced By: Senators Lynch, Felag, Bates, Conley, and Miller

     Date Introduced: February 27, 2014

     Referred To: Senate Finance

     (Administration)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-35.1-3 of the General Laws in Chapter 42-35.1 entitled "Small

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

follows:

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

regulation that may have an adverse impact on small businesses, with the exception of emergency

regulations adopted in accordance with subsection §42-35-3(b) and excluding those businesses

defined in subsection (c) of this section, each agency shall prepare and submit, in conjunction

with assistance and oversight from the office of regulatory reform, the proposed regulations to

both the governor's office and the office of regulatory reform at least fifteen (15) days in advance

of the commencement of the formal rulemaking process, and in congruence with the analysis

required in subsection (b) of this section, an economic impact statement that includes the

following:

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

proposed regulation;

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

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

preparation of the report or record;

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

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

purpose of the proposed regulation.

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

well as posted on the department of administration and the office of management and budget

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

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

meet the requirement of the regulation. The office of regulatory reform shall develop criteria for

the economic impact statement.

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

business for purposes of this section:

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

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

bankers and stock and bond brokers;

      (2) Insurance companies, both stock and mutual;

      (3) Mineral, oil and gas brokers;

      (4) Subdividers and developers;

      (5) Landscape architects, architects and building designers;

      (6) Entities organized as nonprofit institutions;

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

performances, television and radio stations and production companies;

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

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

and

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

The following professional and business activities, extensively regulated pursuant to state and

federal law and subject to significant capital requirements and other regulatory standards, shall be

excluded from this section:

     (1) All public utilities, as defined in § 39-1-2(20), whose rates are subject to approval by

the public utilities commission; and

     (2) All regulated institutions as defined in § 19-1-1(10); broker dealers as defined in § 7-

11-101(1); and insurance companies chartered or licensed pursuant to chapters 1 and 2 of title 27.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- REGULATORY FAIRNESS IN

ADMINISTRATIVE PROCEDURES

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     This act would amend the process for submission of economic impact statements, and

eliminate a number of exclusions which are set forth in the existing statute.

     This act would take effect upon passage.

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