Rhode Island House Bill H7449

Rhode Island 2026 Regular Session

• Introduced: 1/30/26
• Refer: 1/30/26

Caption

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.

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.