2026 -- H 7449

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LC003602

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS

REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES-ECONOMIC IMPACT

STATEMENTS

     Introduced By: Representatives Paplauskas, Nardone, Fascia, Place, Newberry,
Chippendale, Roberts, J. Brien, Santucci, and Hopkins

     Date Introduced: January 30, 2026

     Referred To: House Small Business

     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 § 42-

35-2.10 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 and a finding

that the anticipated compliance costs of a proposed rule scale proportionally with the business size,

and do not impose fixed costs that larger businesses are able to absorb more easily;

     (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 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, 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, whose rates are subject to approval by the

public utilities commission; and

     (2) All regulated institutions as defined in § 19-1-1; 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 -- SMALL BUSINESS

REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES-ECONOMIC IMPACT

STATEMENTS

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     This act would require that agencies preparing economic impact statements for proposed

rules applying to small businesses contain a finding that the anticipated compliance costs of the

proposed rule scale proportionally with the business size, and do not impose fixed costs that larger

businesses are able to absorb more easily.

     This act would take effect upon passage.

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LC003602

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