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S2343
2026 -- S 2343
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LC003301
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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
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:
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SECTION 1. Section 42-35.1-5 of the General Laws in Chapter 42-35.1 entitled "Small
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Business Regulatory Fairness in Administrative Procedures" is hereby amended to read as follows:
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42-35.1-5.
Small business enforcement ombudsperson
Small business ombudsman.
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(a) The director of the department of business regulation shall
designate an existing staff
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member as a
establish the position of
“small business
regulatory enforcement
ombudsman,” who
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shall report to the director of business regulation.
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(b) The ombudsperson shall:
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(1) Work with each agency with regulatory
or licensing
authority over small businesses to
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ensure that small
business concerns that receive or are subject to an audit, on-site inspection,
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compliance assistance effort, or other enforcement related communication or contact by agency
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personnel are provided with a means to comment on the enforcement activity conducted by such
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personnel
businesses are provided assistance regarding a regulation or enforcement activity
;
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(2) Establish means to receive
suggestions, feedbacks and
comments from small
business
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concerns
businesses
regarding
actions by
agency
employees conducting
compliance or
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enforcement activities;
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(3) Within six (6) months of appointment, work with each regulating entity to develop and
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publish reporting policies;
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(4) Based on
substantiated
suggestions, feedbacks and
comments received from small
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business concerns
businesses
, the ombudsperson shall annually
produce a public
report to the
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general assembly
and affected agencies evaluating the enforcement activities of agency personnel,
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including a rating of the responsiveness of the regulatory agencies policies
detailing the activities
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of the ombudsman to assist small businesses and providing legislative recommendations to improve
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the small business climate
;
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(5) Coordinate and report annually on the activities, findings, and recommendations to the
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general assembly and the directors of affected agencies;
and
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(6) Provide the affected agency with an opportunity to comment on reports prepared
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pursuant to this chapter, and include a section of the final report in which the affected agency may
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make such comments as are not addressed by the ombudsperson
; and
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(7) Provide assistance to petition an agency or licensing authority as authorized under §
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42-35-6
.
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SECTION 2. Section 42-35-6 of the General Laws in Chapter 42-35 entitled
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"Administrative Procedures" is hereby amended to read as follows:
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42-35-6.
Petition for promulgation of rules
Resident and business petition.
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Any
person
resident or business located in Rhode Island
may petition an agency
or
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licensing authority
to
promulgate
adopt, change or repeal
a rule
policy or procedure
. An agency
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shall prescribe, by rule, the form of the petition and the procedure for
its
petition,
submission,
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consideration, and disposition. Not later than thirty (30) days after submission of a petition, the
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agency shall:
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(1) Deny the petition in
a record
writing to the petitioner
and
state its
justify the
reasons
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for the denial; or
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(2) Initiate rulemaking
, policy or procedure changes
.
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(b) Rulemaking conducted under this section may be expedited by the agency or licensing
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authority in compliance with this chapter. A final policy change or process improvement adopted
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under this section shall be published with a summary and explanation on the agency’s website
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where public notices and announcements are routinely maintained.
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SECTION 3. Section 42-64-34 of the General Laws in Chapter 42-64 entitled "Rhode
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Island Commerce Corporation" is hereby amended to read as follows:
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42-64-34. Appointment of small business advocate.
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(a)
The director of the
The ombudsman appointed pursuant to the provisions of in § 42-
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35.1-5 shall serve as the
Rhode Island commerce
corporation shall appoint a staff person to serve
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as the
corporation's
small business advocate.
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(b) The small business advocate shall:
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(1) Identify and convey specific concerns raised by small business in providing notice to
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the state agency proposing the regulation;
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(2) Inform businesses regarding proposed regulation that may have a significant adverse
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economic impact; and
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(3) Formulate policies and procedures in accordance with chapter 35 of this title.
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(c) The small business advocate may request from any government agency, and the agency
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is authorized and directed to provide, any cooperation and assistance, services, and data as will
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enable the small business advocate to properly perform or exercise any of the small business
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advocate’s functions, duties, and powers under this chapter.
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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
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ombudsman serve as the Rhode Island commerce corporation's small business advocate.
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This act would take effect upon passage.
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