RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS, REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES-ECONOMIC IMPACT, STATEMENTS
Impact
The bill modifies Section 42-35.1-3 of the General Laws, highlighting the responsibilities of agencies as they engage in rulemaking processes. By promoting a clear assessment of potential compliance costs, the legislation is designed to foster a more favorable regulatory environment for small businesses. This could lead to increased efforts by agencies to consider the specific impacts of regulations on smaller entities, potentially reducing the overall regulatory burden on businesses that serve as vital components of the state economy. It also indicates legislative intent to support economic growth and aid in sustaining small businesses through proactive regulatory adjustments.
Summary
House Bill H7449 seeks to establish a framework for small businesses regarding how regulatory agencies assess the economic impacts of proposed rules. Specifically, the bill mandates that any agency proposing a regulation that could adversely affect small businesses must prepare an economic impact statement. This statement should include estimates of affected small businesses, compliance costs, and an evaluation of whether the costs scale proportionally with business size to avoid disproportionate burdens on smaller entities. The bill aims to enhance fairness in administrative procedures by ensuring that smaller businesses are not unfairly disadvantaged by regulatory requirements.
Contention
Notably, while the bill has the potential to assist small businesses, there may be contention regarding the extent of its implementation and enforcement. Opponents could argue that while the intentions behind the bill are positive, the practical implications and administrative overhead of preparing detailed economic impact statements may burden the regulatory process and delay necessary regulations. Additionally, questions may arise about the criteria developed by the office of regulatory reform to ensure compliance with these new requirements, particularly regarding what constitutes a 'small business' and how proportional compliance costs are determined.
Expands the duties of the small business ombudsman, by also having the ombudsman serve as the Rhode Island commerce corporation's small business advocate.
Expands the duties of the small business ombudsman, by also having the ombudsman serve as the Rhode Island commerce corporation's small business advocate.
Requires statements as to whether a bill is likely to increase equity, decrease equity or have no impact on equity to be included on up to 20 pieces of legislation.
Increases the minimum required awarded to minority business enterprises from 15% to 20% and of that, requires a minimum of 10% be awarded to minority owned businesses and a minimum of 10% be awarded to women owned businesses.
Requires DOA provide inventory of all state agencies using artificial intelligence (AI); establishes a 13 member permanent commission to monitor the use of AI in state government and makes recommendations for state government policy and other decisions.
Amends the definition of "small employer" for purposes of the small employer health insurance availability act to mean a business employing less than one hundred (100) employees rather than fifty (50) employees.
HOUSE RESOLUTION AMENDING THE RULES OF THE HOUSE OF REPRESENTATIVES FOR THE YEARS 2023 AND 2024 (Authorizes the Speaker and the Rhode Island Black, Latino, Indigenous, Asian American and Pacific Islander (RIBLIA) Caucus to request equity impact statements on up to five (5) proposed bills.)