2024 -- S 2507

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LC005240

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS

REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES

     Introduced By: Senators Paolino, and de la Cruz

     Date Introduced: March 01, 2024

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-35.1-5 of the General Laws in Chapter 42-35.1 entitled "Small

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

     42-35.1-5. Small business enforcement ombudsman. Small business ombudsman.

     (a) The director of the department of business regulation shall designate an existing staff

member as a establish the position of “small business regulatory enforcement ombudsman,” who

shall report to the director of business regulation.

     (b) The ombudsman shall:

     (1) Work with each agency with regulatory or licensing authority over small businesses to

ensure that small businesses business concerns that receive or are subject to an audit, on-site

inspection, compliance assistance effort, or other enforcement related communication or contact

by agency personnel are provided with a means to comment on the enforcement activity conducted

by such personnel are provided assistance regarding a regulation or enforcement activity;

     (2) Establish means to receive suggestions, feedbacks and comments from small businesses

business concerns regarding actions by agency employees conducting compliance or enforcement

activities;

     (3) Within six (6) months of appointment, work with each regulating entity to develop and

publish reporting policies;

     (4) Based on substantiated suggestions, feedbacks and comments received from small

businesses business concerns, the ombudsman shall annually produce a public report to the general

assembly and affected agencies evaluating the enforcement activities of agency personnel,

including a rating of the responsiveness of the regulatory agencies policies detailing the activities

of the ombudsman to assist small businesses and providing legislative recommendations to improve

the small business climate;

     (5) Coordinate and report annually on the activities, findings, and recommendations to the

general assembly and the directors of affected agencies; and

     (6) Provide the affected agency with an opportunity to comment on reports prepared

pursuant to this chapter, and include a section of the final report in which the affected agency may

make such comments as are not addressed by the ombudsman.; and

     (7) Provide assistance to petition an agency or licensing authority as authorized under §

42-35-6.

     SECTION 2. Section 42-35-6 of the General Laws in Chapter 42-35 entitled

"Administrative Procedures" is hereby amended to read as follows:

     42-35-6. Petition for promulgation of rules. Resident and Business Petition.

     (a) Any person resident or business located in Rhode Island may petition an agency or

licensing authority to promulgate adopt, change or repeal a rule policy or procedure. An agency

shall prescribe, by rule, the form of the petition and the procedure for its petition, submission,

consideration, and disposition. Not later than thirty (30) days after submission of a petition, the

agency shall:

     (1) Deny the petition in a record writing to the petitioner and state its justify the reasons

for the denial; or

     (2) Initiate rulemaking, policy or procedure changes.

     (b) Rulemaking conducted under this section may be expedited by the agency or licensing

authority in compliance with this chapter. A final policy change or process improvement adopted

under this section shall be published with a summary and explanation on the agency’s website

where public notices and announcements are routinely maintained.

     SECTION 3. Section 42-64-34 of the General Laws in Chapter 42-64 entitled "Rhode

Island Commerce Corporation" is hereby amended to read as follows:

     42-64-34. Appointment of small business advocate.

     (a) The ombudsman created in § 42-35.1-5 shall serve as the The director of the Rhode

Island commerce corporation corporation's shall appoint a staff person to serve as the small

business advocate.

     (b) The small business advocate shall:

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     (1) Identify and convey specific concerns raised by small business in providing notice to

the state agency proposing the regulation;

     (2) Inform businesses regarding proposed regulation that may have a significant adverse

economic impact; and

     (3) Formulate policies and procedures in accordance with chapter 35 of this title.

     (c) The small business advocate may request from any government agency, and the agency

is authorized and directed to provide, any cooperation and assistance, services, and data as will

enable the small business advocate to properly perform or exercise any of his or her functions,

duties, and powers under this chapter.

     SECTION 4. 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 -- SMALL BUSINESS

REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES

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     This act would expand the duties of the small business ombudsman, by also having the

ombudsman serve as the Rhode Island commerce corporation's small business advocate.

     This act would take effect upon passage.

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