Chapter 089

2012 -- S 2355

Enacted 05/22/12

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

It is enacted by the General Assembly as follows:

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

"Administrative Procedures" is hereby repealed.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

proposed regulation;

(2) The projected reporting, record keeping 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 probable effect on impacted small businesses; and

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

purpose of the proposed regulation.

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

reducing the impact of the proposed regulation on small businesses:

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

businesses;

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

reporting requirements for small businesses;

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

businesses;

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

operational standards required in the proposed regulation; and

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

in the proposed regulation.

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

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

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

agency. The economic development corporation shall provide written comment specifically

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

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

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

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

(d) 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; subdividers and developers;

(4) Landscape architects, architects and building designers;

(5) Entities organized as nonprofit institutions;

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

performances, television and radio stations, and production companies;

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

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

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

SECTION 2. 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, excluding those businesses

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

with the analysis required in section 42-35-3.3, an economic impact statements 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 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 of economic development corporation

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 by the small business to meet

the requirement of the regulation.

(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;

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

SECTION 3. This act shall take effect upon passage.

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LC01375

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