AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES (Expands the duties of the small business ombudsman, by also having the ombudsman serve as the Rhode Island commerce corporation's small business advocate.)

S2343

2026 -- S 2343
========
LC003301
========

STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS
REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES

Introduced By:
Senators Paolino, Dimitri, Rogers, Patalano, Thompson, Pearson,
DiPalma, Ujifusa, Burke, and Gu

Date Introduced:
January 30, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
1
SECTION 1. Section 42-35.1-5 of the General Laws in Chapter 42-35.1 entitled "Small
2
Business Regulatory Fairness in Administrative Procedures" is hereby amended to read as follows:
3

42-35.1-5.
Small business enforcement ombudsperson
Small business ombudsman.
4
(a) The director of the department of business regulation shall
designate an existing staff
5
member as a

establish the position of
“small business
regulatory enforcement
ombudsman,” who
6
shall report to the director of business regulation.
7
(b) The ombudsperson shall:
8
(1) Work with each agency with regulatory
or licensing
authority over small businesses to
9
ensure that small
business concerns that receive or are subject to an audit, on-site inspection,
10
compliance assistance effort, or other enforcement related communication or contact by agency
11
personnel are provided with a means to comment on the enforcement activity conducted by such
12
personnel

businesses are provided assistance regarding a regulation or enforcement activity
;
13
(2) Establish means to receive
suggestions, feedbacks and
comments from small
business
14
concerns

businesses
regarding
actions by
agency
employees conducting
compliance or
15
enforcement activities;
16
(3) Within six (6) months of appointment, work with each regulating entity to develop and
17
publish reporting policies;
18
(4) Based on
substantiated

suggestions, feedbacks and
comments received from small

1
business concerns

businesses
, the ombudsperson shall annually
produce a public
report to the
2
general assembly
and affected agencies evaluating the enforcement activities of agency personnel,
3
including a rating of the responsiveness of the regulatory agencies policies

detailing the activities
4
of the ombudsman to assist small businesses and providing legislative recommendations to improve
5
the small business climate
;
6
(5) Coordinate and report annually on the activities, findings, and recommendations to the
7
general assembly and the directors of affected agencies;
and
8
(6) Provide the affected agency with an opportunity to comment on reports prepared
9
pursuant to this chapter, and include a section of the final report in which the affected agency may
10
make such comments as are not addressed by the ombudsperson
; and
11

(7) Provide assistance to petition an agency or licensing authority as authorized under §
12
42-35-6
.
13
SECTION 2. Section 42-35-6 of the General Laws in Chapter 42-35 entitled
14
"Administrative Procedures" is hereby amended to read as follows:
15

42-35-6.
Petition for promulgation of rules
Resident and business petition.
16
Any
person

resident or business located in Rhode Island
may petition an agency
or
17
licensing authority
to
promulgate

adopt, change or repeal
a rule
policy or procedure
. An agency
18
shall prescribe, by rule, the form of the petition and the procedure for
its

petition,
submission,
19
consideration, and disposition. Not later than thirty (30) days after submission of a petition, the
20
agency shall:
21
(1) Deny the petition in
a record

writing to the petitioner
and
state its

justify the
reasons
22
for the denial; or
23
(2) Initiate rulemaking
, policy or procedure changes
.
24

(b) Rulemaking conducted under this section may be expedited by the agency or licensing
25
authority in compliance with this chapter. A final policy change or process improvement adopted
26
under this section shall be published with a summary and explanation on the agency’s website
27
where public notices and announcements are routinely maintained.
28
SECTION 3. Section 42-64-34 of the General Laws in Chapter 42-64 entitled "Rhode
29
Island Commerce Corporation" is hereby amended to read as follows:
30

42-64-34. Appointment of small business advocate.
31
(a)
The director of the

The ombudsman appointed pursuant to the provisions of in § 42-
32
35.1-5 shall serve as the
Rhode Island commerce
corporation shall appoint a staff person to serve
33
as the

corporation's
small business advocate.
34
(b) The small business advocate shall:

LC003301 - Page 2 of 4
1
(1) Identify and convey specific concerns raised by small business in providing notice to
2
the state agency proposing the regulation;
3
(2) Inform businesses regarding proposed regulation that may have a significant adverse
4
economic impact; and
5
(3) Formulate policies and procedures in accordance with chapter 35 of this title.
6
(c) The small business advocate may request from any government agency, and the agency
7
is authorized and directed to provide, any cooperation and assistance, services, and data as will
8
enable the small business advocate to properly perform or exercise any of the small business
9
advocate’s functions, duties, and powers under this chapter.
10
SECTION 4. This act shall take effect upon passage.
========
LC003301
========

LC003301 - Page 3 of 4
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS
REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES
***
1
This act would expand the duties of the small business ombudsman, by also having the
2
ombudsman serve as the Rhode Island commerce corporation's small business advocate.
3
This act would take effect upon passage.
========
LC003301
========

LC003301 - Page 4 of 4