AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- SMALL BUSINESS REGULATORY FAIRNESS IN ADMINISTRATIVE PROCEDURES-ECONOMIC IMPACT STATEMENTS (Requires agencies preparing economic impact statements for small businesses contain findings that the anticipated compliance costs of a proposed rule scale proportionally with the business size, and do not impose fixed costs that favor larger businesses.)

S2665

2026 -- S 2665
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LC004656
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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:
Senators Dimitri, LaMountain, Raptakis, Thompson, Famiglietti, Paolino,
de la Cruz, Rogers, and E Morgan

Date Introduced:
February 27, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 42-35.1-3 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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42-35.1-3. Economic impact statements.
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(a) Prior to the adoption of any proposed regulation that may have an adverse impact on
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small businesses, with the exception of emergency regulations adopted in accordance with § 42-
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35-2.10 and excluding those businesses defined in subsection (c) of this section, each agency shall
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prepare and submit, in conjunction with assistance and oversight from the office of regulatory
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reform, the proposed regulations to both the governor’s office and the office of regulatory reform
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at least fifteen (15) days in advance of the commencement of the formal rulemaking process, and
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in congruence with the analysis required in subsection (b) of this section, an economic impact
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statement that includes the following:
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(1) An identification and estimate of the number of the small businesses subject to the
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proposed regulation;
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(2) The projected reporting, recordkeeping, and other administrative costs required for
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compliance with the proposed regulation, including the type of professional skills necessary for
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preparation of the report or record;
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(3) A statement of the effect or probable effect on impacted small businesses
and a finding
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that the anticipated compliance costs of a proposed rule scale proportionally with the business size,

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and do not impose fixed costs that larger businesses are able to absorb more easily
;
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(4) A description of any less intrusive or less costly alternative methods of achieving the
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purpose of the proposed regulation.
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(b) The economic impact statement required herein shall be published in guide form as
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well as posted on the department of administration and the office of management and budget
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websites. The guide should be published and/or posted on or around the same date as the regulation
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change and shall include a description of actions needed by the small business to meet the
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requirement of the regulation. The office of regulatory reform shall develop criteria for the
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economic impact statement.
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(c) The following professional and business activities, extensively regulated pursuant to
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state and federal law and subject to significant capital requirements and other regulatory standards,
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shall be excluded from this section:
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(1) All public utilities, as defined in § 39-1-2, whose rates are subject to approval by the
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public utilities commission; and
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(2) All regulated institutions as defined in § 19-1-1; broker-dealers as defined in § 7-11-
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101(1); and insurance companies chartered or licensed pursuant to chapters 1 and 2 of title 27.
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SECTION 2. This act shall take effect upon passage.
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LC004656
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LC004656 - Page 2 of 3
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
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rules applying to small businesses contain a finding that the anticipated compliance costs of the
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proposed rule scale proportionally with the business size, and do not impose fixed costs that larger
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businesses are able to absorb more easily.
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This act would take effect upon passage.
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LC004656
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LC004656 - Page 3 of 3