2020 -- H 7359 | |
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LC003246 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO BUSINESSES AND PROFESSIONS | |
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Introduced By: Representatives Place, Nardone, and Quattrocchi | |
Date Introduced: January 30, 2020 | |
Referred To: House Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS" |
2 | is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 90 |
4 | OCCUPATIONAL LICENSING REVIEW ACT |
5 | 5-90-1. Title. |
6 | This chapter shall be known and may be cited as the "Occupational Licensing Review |
7 | Act". |
8 | 5-90-2. Purpose. |
9 | It is the purpose of this chapter to establish a policy for the regulation of occupations, |
10 | specifying criteria for government regulation to increase opportunities, promote competition, |
11 | encourage innovation, protect consumers, establish canons of statutory interpretation, and create a |
12 | process to review the criminal history of business owners to reduce offenders' disqualifications. |
13 | 5-90-3. Legislative findings. |
14 | The general assembly finds and it shall be the policy of this state that: |
15 | (1) The right of an individual to pursue a lawful occupation is a fundamental right. |
16 | (2) Where the state finds it is necessary to displace competition, it will use the least |
17 | restrictive regulation to protect consumers from present, significant, and substantiated harms that |
18 | threaten public health and safety. |
19 | (3) Legislative leaders will assign the responsibility to review legislation and laws related |
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1 | to occupational regulations. |
2 | 5-90-4. Definitions. |
3 | As used in this chapter, the following terms shall have the following meanings: |
4 | (1) "Governmental certification" means a voluntary, government-granted, and non- |
5 | transferable recognition to an individual who meets personal qualifications related to a lawful |
6 | occupation. Upon the government's initial and continuing approval, the individual may use |
7 | "government certified" or "state certified" as a title. A non-certified individual also may perform |
8 | the lawful occupation for compensation, but may not use the terms "government certified" or |
9 | "state certified" as a title. In this chapter, the term "government certified" is not synonymous with |
10 | "occupational license." It is also not intended to include credentials, such as those used for |
11 | medical-board certification or held by a certified public accountant, that are prerequisites to |
12 | working lawfully in an occupation. |
13 | (2) "Government registration" means a requirement to give notice to the government that |
14 | may include the individual's name and address, the individual's agent for service of process, the |
15 | location of the activity to be performed, and a description of the service the individual provides. |
16 | "Government registration" does not include personal qualifications and is not transferable but it |
17 | may require a bond or insurance. Upon the government's receipt of notice, the individual may use |
18 | "government registered" as a title. A non-registered individual may not perform the occupation |
19 | for compensation or use "government registered" as a title. In this chapter, "government |
20 | registration" is not intended to be synonymous with "occupational license." It is also not intended |
21 | to include credentials, such as those held by a registered nurse, which are prerequisites to working |
22 | lawfully in an occupation. |
23 | (3) "Lawful occupation" means a course of conduct, pursuit or profession that includes |
24 | the sale of goods or services that are not themselves illegal to sell, irrespective of whether the |
25 | individual selling them is subject to an occupational regulation or not. |
26 | (4) "Least restrictive regulation" means, from the least to the most restrictive: |
27 | (i) Market competition; |
28 | (ii) Third-party or consumer-created ratings and reviews; |
29 | (iii) Private certification; |
30 | (iv) Voluntary bonding or insurance; |
31 | (v) Specific private civil cause of action to remedy consumer harm; |
32 | (vi) Chapter 13.1 of title 6, "deceptive trade practices"; |
33 | (vii) Mandatory disclosure of attributes of the specific good or service; |
34 | (viii) Regulation of the process of providing the specific good or service; |
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1 | (ix) Regulation of the facility where the specific goods or services are sold; |
2 | (x) Inspection; |
3 | (xi) Bonding; |
4 | (xii) Insurance; |
5 | (xiii) Government registration; |
6 | (xiv) Government certification; |
7 | (xv) Specialty occupational license for medical reimbursement; and |
8 | (xvi) Occupational license. |
9 | (5) "Occupational license" means a lawful non-transferable authorization for an |
10 | individual to perform exclusively a lawful occupation for compensation based on meeting |
11 | personal qualifications established by the general assembly. In an occupation for which a license |
12 | is required, it is illegal for an individual who does not possess a valid occupational license to |
13 | perform the occupation for compensation. |
14 | (6) "Occupational regulation" means a statute, rule, practice, policy, or other state law |
15 | that allows an individual to use an occupational title or work in a lawful occupation. It includes |
16 | government registration, government certification, and occupational license. It excludes a |
17 | business license, facility license, building permit, or zoning and land use regulation, except to the |
18 | extent those state laws regulate an individual's personal qualifications to perform a lawful |
19 | occupation. |
20 | (7) "Personal qualifications" means criteria that are related to an individual's personal |
21 | background and characteristics. They may include one or more of the following: completion of an |
22 | approved educational program, satisfactory performance of an examination, work experience, |
23 | apprenticeship, other evidence of attainment of requisite knowledge and skills, passing a review |
24 | of the individual's criminal record and completion of continuing education. |
25 | (8) "Private certification" means a voluntary program in which a private organization |
26 | grants non-transferable recognition to an individual who meets personal qualifications and |
27 | standards relevant to performing the occupation as determined by the private organization. The |
28 | individual may use a designated title of "certified," as permitted by the organization. |
29 | (9) "Specialty occupational license for medical reimbursement" means a non-transferable |
30 | authorization in law for an individual to qualify for payment or reimbursement from a |
31 | government agency for the non-exclusive provision of new or niche medical services based on |
32 | meeting personal qualifications established by the general assembly. A private health insurance |
33 | company or other private company may recognize this credential. Notwithstanding this specialty |
34 | license, it is legal for a person regulated under another occupational regulation to provide similar |
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1 | services as defined in state law for compensation and reimbursement. It is also legal for an |
2 | individual who does not possess this specialty license to provide the identified medical services |
3 | for compensation, but the non-licensed individual will not qualify for payment or reimbursement |
4 | from a government agency. |
5 | 5-90-5. Review of occupational regulations. |
6 | (a) The speaker of the house of representatives and the president of the senate shall assign |
7 | to the small business committee of the house and the labor committee of the senate, hereinafter |
8 | "committees," the responsibility to analyze proposals and legislation to create new occupational |
9 | regulations and/or modify existing occupational regulations. |
10 | (b) The committees shall be responsible for reviewing legislation to enact or modify an |
11 | occupational regulation to ensure compliance with the policies set forth in § 5-90-3. |
12 | (1) The committees will require proponents to submit evidence of present, significant, |
13 | and substantiated harms to consumers in the state. The committees may also request information |
14 | from state agencies that contract with individuals in regulated occupations and others |
15 | knowledgeable of the occupation, labor-market economics, or other factors, cost and benefits. |
16 | (2) The committees will determine if the proposed regulation meets the state's policy in § |
17 | 5-90-3 of using the least restrictive regulation necessary to protect consumers from present, |
18 | significant, and substantiated harms. |
19 | (3) The committee's analysis in subsection (b)(2) of this section will employ a rebuttable |
20 | presumption that consumers are sufficiently protected by market competition and private |
21 | remedies as listed in § 5-90-4(4)(i) through (iv). The committees will give added consideration to |
22 | the use of private certification programs that allow a provider to give consumers information |
23 | about the provider's knowledge, skills and association with a private certification organization. |
24 | (4) The committees may rebut the presumption in subsection (b)(3) of this section if they |
25 | find both credible, empirical evidence of present, significant, and substantiated harm, and that |
26 | consumers do not have the information and means to protect themselves against such harm. If |
27 | evidence of such unmanageable harm is found, the committees may recommend the least |
28 | restrictive government regulation to address the harm as listed in § 5-90-4(4)(v) through (xvi). |
29 | (5) The committees will use the following guidelines to form their recommendation in |
30 | subsection (b)(2) of this section. If the harm arises from: |
31 | (i) Contractual disputes, including pricing disputes, the committees may recommend |
32 | enacting a specific civil cause of action in district court to remedy consumer harm. This cause of |
33 | action may provide for reimbursement of attorneys' fees and/or court costs, if a consumer's claim |
34 | is successful; |
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1 | (ii) Fraud, if found, the committees may recommend strengthening powers under chapter |
2 | 13.1 of title 6, "deceptive trade practices" or by requiring disclosure that will reduce misleading |
3 | attributes of the specific good or services; |
4 | (iii) General health and safety risks, the committees may recommend enacting a |
5 | regulation on the related process or requiring a facility license; |
6 | (iv) Unclean facilities, the committees may recommend requiring periodic facility |
7 | inspections; |
8 | (v) A provider's failure to complete a contract fully or to professional standards, the |
9 | committees may recommend requiring the provider to be bonded; |
10 | (vi) A lack of protection for a person who is not a party to a contract between providers |
11 | and consumers, the committees may recommend requiring the provider have insurance; |
12 | (vii) Transactions with transient, out-of-state, or fly-by-night providers, the committees |
13 | may recommend requiring the provider to register its business with the secretary of state; |
14 | (viii) A shortfall or imbalance in the consumer's knowledge about the goods or services |
15 | relative to the provider's knowledge (asymmetrical information), the committees may recommend |
16 | enacting government certification; |
17 | (ix) An inability to qualify providers of new or highly-specialized medical services for |
18 | reimbursement by the state, the committees may recommend enacting a specialty license for |
19 | medical reimbursement; |
20 | (x) A systematic information shortfall in which a reasonable consumer of the goods or |
21 | services is permanently unable to distinguish between the quality of providers and there is an |
22 | absence of institutions that provide guidance to consumers, the committees may recommend |
23 | enacting an occupational license; and |
24 | (xi) The need to address multiple types of harm, the committees may recommend a |
25 | combination of regulations to include, but not be limited to, a government regulation combined |
26 | with a private remedy including third-party or consumer-created ratings and reviews, or private |
27 | certification. |
28 | (6) The committee's analysis of the need for regulation in subsection (b)(3) of this |
29 | section, will include the effects of legislation on opportunities for workers, consumer choices and |
30 | costs, general unemployment, market competition, governmental costs, and other effects. |
31 | (7) The committee's analysis of the need for regulation in subsection (b)(3) of this |
32 | section, shall compare the legislation to determine whether and how other states regulate the |
33 | occupation, including the occupation's scope of practice that other states use, and the personal |
34 | qualifications other states require. |
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1 | (8) The committees will report their findings and recommendations to the initial and |
2 | other subsequent committees that will consider the legislation. The report will include |
3 | recommendations addressing: |
4 | (i) The type of regulation, if any; |
5 | (ii) The requisite personal qualifications, if any; and |
6 | (iii) The scope of practice, if applicable. |
7 | (9) The committees may also comment on whether and how much responsibility the |
8 | legislation delegates to a licensing board to promulgate administrative rules, particularly rules |
9 | relating to establishing the occupation's scope of practice or the personal qualifications required |
10 | to work in the occupation. The comments should make the general assembly aware of exposure to |
11 | antitrust litigation that the legislation may cause because of excessive or ambiguous delegation of |
12 | authority to licensing boards to engage in administrative rulemaking. |
13 | (c) The house of representatives and the senate shall each adopt rules requiring the |
14 | committees considering the legislation to enact or modify an occupational regulation to receive |
15 | the committee's analysis and recommendations in subsection (b) of this section prior to voting on |
16 | the legislation. |
17 | (d) Nothing in this section shall be construed to preempt federal regulation or to require a |
18 | private certification organization to grant or deny private certification to any individual. |
19 | 5-90-6. Analysis of existing occupational licenses. |
20 | (a) Commencing on January 1, 2021, the speaker of the house of representatives and the |
21 | president of the senate shall assign the committees the overall responsibility to analyze existing |
22 | occupational licenses. |
23 | (1) Each relevant standing committee of the legislature is responsible for reviewing |
24 | approximately twenty percent (20%) of the current occupational licenses under the committee's |
25 | jurisdiction per year. The committee chairperson shall select the occupational licenses to be |
26 | reviewed annually. |
27 | (2) Each relevant standing committee of the legislature will review all occupational |
28 | licenses under the committee's jurisdiction within the subsequent five (5) years, and will repeat |
29 | such a review in each five (5) year period thereafter. |
30 | (b) The committees must use the criteria in § 5-90-4(b)(2) through (8) to analyze the |
31 | existing occupational licenses. |
32 | (c) Commencing on January 1, 2022, the committees shall report on an annual basis |
33 | thereafter the findings of their reviews to the speaker of the house of representatives, the president |
34 | of the senate, the governor and the attorney general. In its report, the committees will recommend |
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1 | the legislature enact new legislation that: |
2 | (1) Repeals the occupational licenses; |
3 | (2) Converts the occupational licenses to the less restrictive regulations in § 5-90-4; |
4 | (3) Instructs the relevant licensing board or agency to promulgate revised regulations |
5 | reflecting the legislature's decision to use less restrictive alternatives to occupational licenses; |
6 | (4) Changes the requisite personal qualifications of an occupational license; |
7 | (5) Redefines the scope of practice in an occupational license; or |
8 | (6) Reflects other recommendations to the legislature. |
9 | (d) Nothing in this section shall be construed to preempt federal regulation or authorize |
10 | the committee to review the means that a private certification organization uses to issue, deny or |
11 | revoke a private certification to any individual, or to require a private certification organization to |
12 | grant or deny private certification to any individual. |
13 | 5-90-7. Interpretations of statutes and rules. |
14 | (a) Occupational regulations will be construed and applied to increase economic |
15 | opportunities, promote competition, and encourage innovation. |
16 | (b) Any ambiguities in occupational regulations will be construed in favor of workers and |
17 | aspiring workers to work. |
18 | (c) The scope of practice in occupational regulations is to be construed narrowly to avoid |
19 | burdening individuals with regulatory requirements that only have an attenuated relationship to |
20 | the goods or services they provide. |
21 | 5-90-8. Review of criminal record. |
22 | (a) The right of an individual to pursue a lawful occupation is a fundamental right. |
23 | (b) Notwithstanding any other law, a board, agency, department or other state agency |
24 | (hereafter "board") shall only utilize this chapter to deny, diminish, suspend, revoke, withhold or |
25 | otherwise limit state recognition because of a criminal conviction. |
26 | (c) A board may not automatically bar an individual from state recognition because of a |
27 | criminal conviction, but will provide individualized consideration. |
28 | (d) A board may only consider a conviction of a non-excluded crime that is a felony or |
29 | violent misdemeanor. |
30 | (e) A board will not consider: |
31 | (1) Non-conviction information from the criminal justice system or the court system, |
32 | including information related to a deferred adjudication, participation in a diversion program, or |
33 | an arrest not resulting in a conviction; |
34 | (2) A conviction for which no sentence of incarceration can be imposed; |
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1 | (3) A conviction that has been sealed, expunged, pardoned or overturned on appeal; |
2 | (4) A juvenile adjudication; |
3 | (5) A non-violent misdemeanor; |
4 | (6) A conviction that occurred more than three (3) years before the date of the board's |
5 | consideration, except for a conviction of: |
6 | (i) A crime of violence as defined in § 11-47-2; or |
7 | (ii) A felony related to criminal fraud, larceny or embezzlement as defined in §§ 11-41-3 |
8 | and 11-41-4. |
9 | (f) A board shall not use any vague terms in its consideration and decision including, but |
10 | not limited to, the following: |
11 | (1) Good moral character; |
12 | (2) Moral turpitude; or |
13 | (3) Character and fitness. |
14 | (g) The board shall consider the individual's current circumstances including: |
15 | (1) The age of the individual when they committed the offense; |
16 | (2) The passage of time since the offense; |
17 | (3) The completion of the criminal sentence; |
18 | (4) The attainment of a certificate of rehabilitation or good conduct; |
19 | (5) Completion of, or active participation in a rehabilitative drug or alcohol treatment |
20 | program; |
21 | (6) Testimonials and recommendations, including any progress reports from the |
22 | individual's parole or probation officer; |
23 | (7) Other evidence of rehabilitation; |
24 | (8) Education and training; |
25 | (9) Employment history; |
26 | (10) Employment aspirations; |
27 | (11) The individual's current family responsibilities; and |
28 | (12) Other information that the individual submitted to the board. |
29 | (h) A board shall hold a public hearing on an individual's request for licensing, should the |
30 | individual request one, pursuant to chapter 35 of title 42 ("administrative procedures act"). |
31 | (i) The board may deny, diminish, suspend, revoke, withhold or otherwise limit state |
32 | recognition only if the board determines: |
33 | (1) The state has an important interest in regulation of a lawful occupation that is directly, |
34 | substantially and adversely impaired by the individual's non-excluded criminal record as |
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1 | mitigated by the individual's current circumstances in subsection (g) of this section; or |
2 | (2) The state's interest outweighs the individual's fundamental right to pursue a lawful |
3 | occupation; |
4 | In any case in which the board votes to deny, diminish, suspend, revoke, withhold or |
5 | otherwise limit state recognition and deny an individual the right to pursue a lawful occupation, a |
6 | board will have the burden of supporting that decision by clear and convincing evidence. |
7 | (j) Any individual denied state recognition or otherwise aggrieved by a board's decision |
8 | may appeal the decision as provided in chapter 35 of title 42 ("administrative procedures act"). |
9 | 5-90-9. Petition for board determination prior to obtaining personal qualifications. |
10 | (a) An individual with a criminal record may petition a board at any time, including |
11 | before obtaining any requested personal qualifications, for a decision whether the individual's |
12 | criminal record will disqualify them from obtaining state recognition. |
13 | (b) The individual will include in the petition their criminal record or authorize the board |
14 | to obtain their criminal record. |
15 | (c) The board will make its decision using the criteria and process in § 5-90-5. |
16 | (d) The board will issue its decision no later than sixty (60) days after the board receives |
17 | the petition, or no later than ninety (90) days after the board receives the petition if a hearing is |
18 | held. Any decision by the board shall be in writing, and include the criminal record, findings of |
19 | fact and conclusions of law. |
20 | (e) A decision concluding that the state recognition shall be granted or granted with |
21 | conditions is binding on the board in any later ruling on state recognition of the petitioner, unless |
22 | there is a relevant, material and adverse change in the petitioner's criminal record. |
23 | (f) If the board decides that state recognition should not be granted, the board shall advise |
24 | the petitioner of actions the petitioner may take to remedy the disqualification. |
25 | (g) The petitioner may submit a revised petition reflecting completion of the remedial |
26 | actions before any deadline, which deadline shall not be less than twenty (20) days of the date the |
27 | board sets in its alternative advisory decision. |
28 | (h) The petitioner may appeal the board's decision as provided for in chapter 35 of title 42 |
29 | ("administrative procedures act"). |
30 | (i) The petitioner may submit a new petition to the board not less than one year following |
31 | a final judgment on the initial petition, or upon obtaining the required qualifications, whichever is |
32 | earlier. |
33 | (j) The board may charge a fee to the petitioner to recoup its costs not to exceed one |
34 | hundred dollars ($100) for each petition. |
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1 | 5-90-10. Reporting requirements. |
2 | (a) The house of representatives and the senate shall establish an annual reporting |
3 | requirement of the committees specifying: |
4 | (1) The number of times that each board acted to deny, diminish, suspend, revoke, |
5 | withhold or otherwise limit state recognition from a licensed individual because of criminal |
6 | convictions; |
7 | (2) The offenses for which each board relied in acting to deny, diminish, suspend, revoke, |
8 | withhold or otherwise limit state recognition; |
9 | (3) The numbers of each board's approvals and denials under § 5-90-6; |
10 | (4) The offenses for which the board approved or denied petitions under § 5-90-6; and |
11 | (5) Other data which the house of representatives and senate determines as relevant. |
12 | (b) The house of representatives and the senate shall compile and publish annually a |
13 | report on a searchable public website. |
14 | 5-90-11. Limitation. |
15 | Nothing in this chapter shall be construed to require a private certification organization to |
16 | grant or deny private certification to any individual. |
17 | SECTION 2. This act shall take effect upon passage. |
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LC003246 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO BUSINESSES AND PROFESSIONS | |
*** | |
1 | This act would establish a policy for the regulation of occupations, specifying criteria for |
2 | government regulation to increase opportunities, promote competition, encourage innovation, |
3 | protect consumers, establish canons of statutory interpretation and create a process to review the |
4 | criminal history of business owners to reduce offenders' disqualifications. |
5 | This act would take effect upon passage. |
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LC003246 | |
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