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:

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     SECTION 1. 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, with the exception of emergency

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

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

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

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

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

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required in subsection (b) of this section, an economic impact statement 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 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 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 office of management and budget

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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 needed by the small business to

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

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the economic impact statement.

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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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and

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

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

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

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excluded from this section:

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

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the public utilities commission; and

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

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

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     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

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

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     This act would take effect upon passage.

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