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S 2343Economic Development

State Affairs and Government - Small Business Regulatory Fairness in Administrative Procedures

This bill creates a Small Business Ombudsman to assist businesses and allows residents to petition agencies to change rules.

Held for study
Population
Affected
35
Email Legislator
Introduced Jan 30, 2026Committee Senate Commerce

Plain-English Summary

This legislation establishes the position of "Small Business Ombudsman" within the Department of Business Regulation. This role replaces a previously designated staff member and is tasked with helping small businesses navigate state regulations and enforcement activities. Additionally, the bill expands the rights of all Rhode Island residents and businesses to formally petition state agencies to adopt, change, or remove rules, policies, or procedures. Agencies are required to respond to these petitions within thirty days. Finally, the bill consolidates the role of the Small Business Advocate within the Rhode Island Commerce Corporation into this new Ombudsman position.

For younger readers

This bill creates a special helper called an Ombudsman for small business owners. Just like you might ask a teacher for help with school rules, this helper assists business owners in understanding government rules. The bill also says that any person or business in Rhode Island can ask the government to change a rule or fix a problem. If someone asks for a change, the government has to give them an answer within thirty days. It is designed to make it easier for people to talk to the government and get help.

Who & Where It Applies

Impacted groups
Small Business OwnersRhode Island ResidentsDepartment of Business RegulationRhode Island Commerce CorporationState Licensing Authorities
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Empowers ordinary residents and small business owners by creating a formal legal pathway to petition state agencies to change, adopt, or repeal rules and policies.
  • Increases government transparency and accountability by requiring agencies to provide written justifications if they deny a petition for a rule change.
  • Streamlines government operations by consolidating the Small Business Advocate and Ombudsman roles, potentially improving service delivery without expanding bureaucracy.
  • The expedited rulemaking process allowed under the bill could potentially be used to bypass thorough public review or environmental impact assessments.
  • Business interests may utilize the petition process to aggressively lobby for the removal of necessary regulations protecting workers or the environment.
  • The focus is heavily weighted toward business relief, potentially diverting agency resources away from enforcement and towards concierge services for private enterprise.
For Conservatives
  • Reduces the regulatory burden on the private sector by providing a dedicated Ombudsman to help businesses navigate and challenge enforcement actions.
  • Promotes government accountability by forcing agencies to respond to citizen and business petitions within a strict 30-day window.
  • Consolidates government positions by merging the Commerce Corporation advocate with the DBR Ombudsman, potentially reducing administrative redundancy.
  • Still relies on a government appointee to solve government-created problems, rather than simply reducing the size and scope of the regulatory agencies themselves.
  • Allows activists and non-business residents to petition agencies, which could lead to demands for increased regulations or "social justice" policies.
  • Agencies retain the power to deny petitions, meaning the bureaucracy can still ignore the will of the petitioner if they provide a written excuse.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 35 additions · 26 deletions

SECTION 1. Section 42-35.1-5 of the General Laws in Chapter 42-35.1 entitled "Small Business Regulatory Fairness in Administrative Procedures" is hereby amended to read as follows: 42-35.1-5. Small business enforcement ombudsperson Small business ombudsman.

(a) The director of the department of business regulation shall designate an existing staff member as a establish the position of “small business regulatory enforcement ombudsman,” who shall report to the director of business regulation.

(b) The ombudsperson shall:

(1) Work with each agency with regulatory or licensing authority over small businesses to ensure that small business concerns that receive or are subject to an audit, on-site inspection, compliance assistance effort, or other enforcement related communication or contact by agency personnel are provided with a means to comment on the enforcement activity conducted by such personnel businesses are provided assistance regarding a regulation or enforcement activity;

(2) Establish means to receive suggestions, feedbacks and comments from small business concerns businesses regarding actions by agency employees conducting compliance or enforcement activities;

(3) Within six (6) months of appointment, work with each regulating entity to develop and publish reporting policies;

(4) Based on substantiated suggestions, feedbacks and comments received from small business concerns businesses, the ombudsperson shall annually produce a public report to the general assembly and affected agencies evaluating the enforcement activities of agency personnel, including a rating of the responsiveness of the regulatory agencies policies detailing the activities of the ombudsman to assist small businesses and providing legislative recommendations to improve the small business climate;

(5) Coordinate and report annually on the activities, findings, and recommendations to the general assembly and the directors of affected agencies; and

(6) Provide the affected agency with an opportunity to comment on reports prepared pursuant to this chapter, and include a section of the final report in which the affected agency may make such comments as are not addressed by the ombudsperson ; and

(7) Provide assistance to petition an agency or licensing authority as authorized under § 42-35-6.

SECTION 2. Section 42-35-6 of the General Laws in Chapter 42-35 entitled "Administrative Procedures" is hereby amended to read as follows: 42-35-6. Petition for promulgation of rules Resident and business petition. Any person resident or business located in Rhode Island may petition an agency or licensing authority to promulgate adopt, change or repeal a rule policy or procedure. An agency shall prescribe, by rule, the form of the petition and the procedure for its petition, submission, consideration, and disposition. Not later than thirty (30) days after submission of a petition, the agency shall:

(1) Deny the petition in a record writing to the petitioner and state its justify the reasons for the denial; or

(2) Initiate rulemaking , policy or procedure changes.

(b) Rulemaking conducted under this section may be expedited by the agency or licensing authority in compliance with this chapter. A final policy change or process improvement adopted under this section shall be published with a summary and explanation on the agency’s website where public notices and announcements are routinely maintained.

SECTION 3. Section 42-64-34 of the General Laws in Chapter 42-64 entitled "Rhode Island Commerce Corporation" is hereby amended to read as follows: 42-64-34. Appointment of small business advocate.

(a) The director of the The ombudsman appointed pursuant to the provisions of in § 42- 35.1-5 shall serve as the Rhode Island commerce corporation shall appoint a staff person to serve as the corporation's small business advocate.

(b) The small business advocate shall:

(1) Identify and convey specific concerns raised by small business in providing notice to the state agency proposing the regulation;

(2) Inform businesses regarding proposed regulation that may have a significant adverse economic impact; and

(3) Formulate policies and procedures in accordance with chapter 35 of this title.

(c) The small business advocate may request from any government agency, and the agency is authorized and directed to provide, any cooperation and assistance, services, and data as will enable the small business advocate to properly perform or exercise any of the small business advocate’s functions, duties, and powers under this chapter.

SECTION 4. This act shall take effect upon passage.