Support this pro-business bill

That opportunity presents itself in the form of SB 0198, a bill proposed by Sen. Leo R. Blais, a Coventry Republican. The legislation would “ensure that the voice of small business will be heard early in Rhode Island’s regulatory process.”

Specifically, the bill calls for state agencies to consider alternatives to proposed regulations that will “minimize adverse impacts on small business while still meeting regulatory objectives.”

The bill also calls for state agencies to prepare economic impact statements prior to the adoption of regulations that adversely affect small business. Under the proposal, state agencies would also have to review existing regulations to determine if regulatory objectives can be met with revised rules, which would have less of an impact on small business.

We see the preparation of economic impact statements as a wise step, one that should help to educate legislators about the financial ramifications of legislative proposals. By reviewing existing regulations, legislators may find that some proposals are simply unnecessary – that regulations related to them already exist.

Thomas M. Sullivan, chief counsel for advocacy at the U.S. Small Business Administration, visited Rhode Island last month and testified on behalf of the bill. Sullivan reminded legislators of something they should already know – that small business is the backbone of the Rhode Island economy.

“Sometimes, because small businesses are small, it is easy to overlook their aggregate importance to the economy – and it is easy to overlook how the mass of federal and state mandates is crushing them,” said Sullivan. “The intent of this legislation is to have state agencies consider the consequences on small business before they regulate.”

In meeting with small business owners during his visit to Rhode Island, Sullivan heard a common lament. He was told that state regulations are more cumbersome than federal guidelines here and that they are a very real deterrent to doing business. This proposal before the General Assembly, Sullivan believes, would be a major step in addressing those concerns.

The aggregate impact on the Rhode Island economy by small businesses is enormous. In fact, it is fair to suggest that more than 90 percent of all Rhode Island businesses are small businesses.

We believe that the proposal before the Legislature is a reasonable one. It asks that state agencies invest just a little bit more time on behalf of small business. It is a pro-business bill that would send an important message to existing business owners who may someday have to decide whether to expand their business here – or elsewhere. It is an important piece of legislation for entrepreneurs who may want to start a business here.

It should also be seen as a pro-economy bill – one that will benefit all Rhode Islanders. It should mean more stable companies creating more jobs – more overall economic opportunity.

For too long the General Assembly has been perceived as being pro-labor, barely tolerant of business issues. That perception has changed significantly in recent years.

There have been credible attempts to improve the business climate, with the adoption of legislation designed to lure financial services companies and other tax stabilization strategies.

This bill is another step in the right direction – a direction in which the General Assembly, for the good of the Rhode Island economy, should be heading.