2013 -- H 6063 SUBSTITUTE A

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LC02356/SUB A/2

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- EXECUTIVE OFFICE OF

COMMERCE

     Introduced By: Representatives Melo, Ucci, Blazejewski, Winfield, and Costantino

     Date Introduced: May 01, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

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GOVERNMENT" is hereby amended by adding thereto the following chapter:

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     CHAPTER 64.18

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EXECUTIVE OFFICE OF COMMERCE

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     42-64.18-1. Statement of intent. -- The purpose of this chapter is to develop an

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integrated system of economic development activities while preserving and protecting the safety

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and quality of life for the citizens of Rhode Island and to promote the economic viability of the

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Rhode Island economy, and ensure the efficient use of all available resources by the

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departments/divisions responsible for the regulation of growth within the state and the provision

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of labor and training programs serving all Rhode Islanders, and to provide and promote and

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encourage the preservation, expansion and sound development of new and existing industry,

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business, commerce, agriculture, tourism, recreational, and renewable energy facilities,

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promoting thereby the economic development of the state and the general welfare of its citizens

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and to meet this need while continuing to build on the achievements that have already been made.

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The interests of all Rhode Islanders will best be served by codifying in the state's general laws the

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purposes and responsibilities of the executive office of commerce and the position of secretary of

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commerce.

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     42-64.18-2. Purposes. -- The Rhode Island executive office of commerce is authorized,

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created, and established as the state's lead agency for economic development throughout Rhode

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Island for the following purposes: To promote and encourage the preservation, expansion, and

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sound development of new and existing industry, business, commerce, agriculture, tourism, and

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recreational facilities in the state, which will promote the economic development of the state and

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the creation of opportunities for economic stability and employment through a business climate

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that fosters opportunity for all Rhode Islanders.

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     42-64.18-3. Executive office of commerce. -- (a) There is hereby established within the

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executive branch of state government an executive office of commerce effective January 1, 2014,

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to serve as the principal agency of the executive branch of state government for managing the

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promotion of commerce and the economy within the state and shall have the following powers

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and duties in accordance with the following schedule:

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     (1) On or about February 1, 2014, to operate functions from the department of business

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regulation;

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     (2) No later than April 1, 2014, to operate functions from department of labor and

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training;

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     (3) No later than July 1, 2014, to coordinate, in conjunction with the director of the

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department of environmental management, the business permit processes of the department in

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order to expedite the issuance of said permits;

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     (4) No later than October 1, 2014, to operate various divisions and functions from the

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department of administration;

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     (5) No later than February 1, 2015, to coordinate, in conjunction with the coastal resource

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management council (CRMC), the business permit processes of the council in order to expedite

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the issuance of said permits; and

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     (b) In this capacity, the office shall:

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     (1) Lead the state's business regulatory departments and coordinate business permitting

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processes in order to:

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     (i) Improve the economy, efficiency, coordination, and quality of the business climate in

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the state;

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     (ii) Design strategies and implement best practices that foster economic development and

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growth of the state's economy;

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     (iii) Maximize and leverage funds from all available public and private sources, including

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federal financial participation, grants and awards;

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     (iv) Increase public confidence by conducting customer centric operations whereby

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commercial enterprise are supported and provided programs and services that will grow and

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nurture the Rhode Island economy; and

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     (v) Be the state's lead agency for economic development.

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     (c) The office shall lead the state's energy programs, office of regulatory reform and other

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administration functions which promote, enhance or regulate various service and functions in

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order to:

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     (1) Promote coordinated and consistent energy plans within the state; and

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     (2) Promote the reform and improvement of the regulatory function of the state.

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     42-64.18-4. Secretary of commerce -- Appointment. -- The executive office of

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commerce shall be administered by a secretary of commerce, hereafter referred to as "secretary".

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The position of secretary is hereby created in the unclassified service. The secretary shall be

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appointed by the governor. The secretary shall hold office at the pleasure of the governor and

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until a successor is appointed and qualified. Before entering upon the discharge of duties, the

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secretary shall take an oath to faithfully execute the duties of the office. The secretary shall be

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appointed by January 1, 2014.

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     42-64.18-5. Responsibilities of the secretary. -- (a) The secretary shall be responsible to

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the governor for supervising the executive office of commerce, for coordinating, in conjunction

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with the director of the department of environmental management and CRMC the business permit

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processes of the department and council in order to expedite the issuance of said permits, and

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for managing and providing strategic leadership and direction to the other divisions and

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departments under the jurisdiction of this chapter, for serving as the chief executive officer of the

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Rhode Island commerce corporation, for convening the economic development planning council

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to develop the economic development policy and strategic plan in accordance with section 42-

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64.16, and for serving as chair of the council of economic advisors in accordance with section 42-

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64.17.

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     (b) Notwithstanding any provision of law to the contrary, the secretary shall appoint the

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chiefs/directors of the divisions/departments within the executive office of commerce.

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     42-64.18-6. Duties of the secretary. -- The secretary shall be subject to the direction and

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supervision of the governor for the oversight, coordination and cohesive direction of state

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economic development activities of the state and in ensuring the laws are faithfully executed,

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notwithstanding any law to the contrary. In this capacity, the secretary of commerce shall be

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authorized to:

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     (a) Coordinate the administration and financing of various departments or divisions

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within the office and to supervise the work of the Rhode Island commerce corporation.

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     (b) Serve as the governor's chief advisor and liaison to federal policymakers on economic

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development as well as the principal point of contact in the state on any such related matters.

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Review and ensure the coordination of the development of an overarching economic development

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plan as produced by the office.

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     (c) Receive from department directors, within the timelines specified, any information

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and resources the secretary deems necessary in order to perform the reviews authorized in this

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section;

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     (d) Beginning in 2014, prepare and submit to the governor, the chairpersons of the house

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and senate finance committees, and the caseload estimating conference, by no later than April 15

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of each year, a comprehensive overview of the Rhode Island economy. The secretary shall

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determine the contents of the overview and shall determine the important economic data and

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information that will inform the governor, and the revenue estimating committee on the economic

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conditions of the state and future issues and forward looking projects of the Rhode Island

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economy.

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     (e) The directors of the departments, as well as local governments and school

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departments, shall assist and cooperate with the secretary in fulfilling this responsibility by

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providing whatever resources, information and support shall be necessary.

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     (f) Resolve administrative, jurisdictional, operational, program, or policy conflicts among

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departments and their executive staffs and make necessary recommendations to the governor.

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     (g) Assure continued progress toward improving the quality, the economy, the

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accountability and the efficiency of state-administered programs to support the Rhode Island

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economy. In this capacity, the secretary shall:

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     (1) Direct implementation of reforms in the economic development practices of the

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departments that streamline and upgrade services, achieve greater economies of scale and

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establish the coordinated system of the staff education, cross- training, and career development

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services necessary to recruit and retain a highly-skilled, responsive, and engaged workforce;

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     (2) Encourage the departments to utilize consumer-centered approaches to service design

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and delivery that expand their capacity to respond efficiently and responsibly to the diverse and

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changing needs of the people and communities they serve;

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     (3) Develop all opportunities to maximize resources by leveraging the state's purchasing

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power, centralizing fiscal service functions related to budget, finance, and procurement,

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centralizing communication, policy analysis and planning, and information systems and data

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management, pursuing alternative funding sources through grants, awards and partnerships and

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securing all available federal financial participation for programs and services provided through

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the departments; and

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     (4) Strengthen the financial support system for business and enterprises program

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integrity, quality control and collections, and recovery activities by consolidating functions within

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the office in a single unit that ensures all affected parties pay their fair share of the cost of

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services and are aware of alternative financing.

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     (h) Prepare and integrate comprehensive budgets for the commerce services departments

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and any other functions and duties assigned to the office. The budgets shall be submitted to the

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state budget office by the secretary, for consideration by the governor, on behalf of the state's

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commerce agencies in accordance with the provisions set forth in section 35-3-4 of the Rhode

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Island general laws.

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     (i) Utilize objective data to evaluate economic development policy goals, resource use

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and outcome evaluation and to perform short and long-term policy planning and development.

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     (j) Establishment of an integrated approach to interdepartmental information and data

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management that complements and furthers the goals of the council of economic advisors and

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that will facilitate the transition to consumer-centered system of state administered economic

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development programs and services.

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     (k) At the direction of the governor or the general assembly, conduct independent reviews

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of state-administered economic development programs, policies and related agency actions and

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activities and assist the department directors in identifying strategies to address any issues or

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areas of concern that may emerge thereof. The department directors shall provide any information

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and assistance deemed necessary by the secretary when undertaking such independent reviews.

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     (l) Provide regular and timely reports to the governor and make recommendations with

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respect to the state's economic development agenda.

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     (m) Employ such personnel and contract for such consulting services as may be required

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to perform the powers and duties lawfully conferred upon the secretary.

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     (n) Implement the provisions of any general or public law or regulation related to the

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disclosure, confidentiality and privacy of any information or records, in the possession or under

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the control of the executive office or the departments assigned to the executive office, that may be

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developed or acquired for purposes directly connected with the secretary's duties set forth herein.

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     42-64.18-7. Departments/divisions assigned to the executive office -- Powers and

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duties. -- (a) The departments and or divisions assigned to the secretary shall:

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     (1) Exercise their respective powers and duties in accordance with their statutory

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authority and the general policy established by the governor or by the secretary acting on behalf

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of the governor or in accordance with the powers and authorities conferred upon the secretary by

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this chapter;

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     (2) Provide such assistance or resources as may be requested or required by the governor

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and/or the secretary; and

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     (3) Provide such records and information as may be requested or required by the

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governor and/or the secretary to the extent allowed under the provisions of any applicable general

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or public law, regulation, or agreement relating to the confidentiality, privacy or disclosure of

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such records or information.

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     (4) Forward to the secretary copies of all reports to the governor.

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     (b) Except as provided herein, no provision of this chapter or application thereof shall be

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construed to limit or otherwise restrict the department of environmental management, the

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department of business regulation or the department of labor and training from fulfilling any

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statutory requirement or complying with any valid rule or regulation.

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     (c) The secretary shall determine in collaboration with the department directors whether

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the officers, employees, agencies, advisory councils, committees, commissions, and task forces of

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the departments who were performing such functions shall be transferred to the office.

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     (d) In the transference of such functions, the secretary shall be responsible for ensuring:

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     (1) Minimal disruption of services to consumers;

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     (2) Elimination of duplication of functions and operations;

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     (3) Services are coordinated and functions are consolidated where appropriate;

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     (4) Clear lines of authority are delineated and followed;

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     (5) Cost savings are achieved whenever feasible;

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     (6) Program application and eligibility determination processes are coordinated and,

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where feasible, integrated; and

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     (7) State and federal funds available to the office and the entities therein are allocated and

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utilized for service delivery to the fullest extent possible.

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     (d) Except as provided herein, no provision of this chapter or application thereof shall be

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construed to limit or otherwise restrict the departments under this section from fulfilling any

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statutory requirement or complying with any regulation deemed otherwise valid.

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     (e) To ensure an orderly transfer of functions to the office of commerce the following

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transition shall occur at the direction of the governor, secretary of commerce and the respective

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directors of the department affected.

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     (f) On or about February 1, 2014, the office shall commence to operate the functions

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from the department of business regulation (DBR) as set forth below:

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     (1) All functions currently assigned to the DBR shall be transferred to the office of

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commerce effective no later than February 1, 2014.

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     (g) No later than April 1, 2014, the office shall commence to operate the functions from

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the department of labor and training (DLT) as set forth below:

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     (1) The following functions currently assigned to the DLT shall be transferred to the

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office of commerce effective no later than April 1, 2014:

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     (i) Unemployment insurance;

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     (ii) Employment services;

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     (iii) Governor's workforce board;

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     (iv) Job training partnership act (JTPA) and other training programs;

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     (v) Labor market information;

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     (vi) Veteran services;

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     (vii) Labor standards;

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     (viii) Occupational safety; and

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     (ix) Professional regulations.

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     (h) No later than July 1, 2014, the office shall commence to coordinate, in conjunction

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with the director of the department of environmental management, the business permit processes

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of the department in order to expedite the issuance of said permits.

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     (i) No later than October 1, 2014, the office shall commence to operate the functions

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from the department of administration as set forth below:

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     (1) The following functions currently assigned to the department of administration

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(DOA) shall be transferred to the office of commerce effective no later than October 1, 2014:

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     (i) Fire code; building code; regulatory reform; energy resources; renewable energy fund;

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statewide planning; planning: housing/community development; minority business enterprises;

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and health benefits exchange.

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     (j) No later than February 1, 2015, the office of commerce shall commence to coordinate,

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in conjunction with the coastal resource management council (CRMC), the business permit

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processes of the council in order to expedite the issuance of said permits.

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     (k) There may be formed within the office of the commerce four (4) divisions assigning

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the above listed functions to these specific divisions within the office. The four divisions may

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include workforce training, regulatory, energy and central management. The governor with the

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submission of the FY 2015 budget shall allocate resources to the new commerce office and to

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consolidate the departments that have had their functions changed.

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     42-64.18-8. Appointment of employees. -- The secretary, subject to the provisions of

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applicable state law, shall be the appointing authority for all employees of the executive office of

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commerce. The secretary may assign this function to such subordinate officers and employees of

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the executive office as may to him or her seem feasible or desirable. The appointing authority of

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the secretary provided for herein shall not affect, interfere with, limit, or otherwise restrict the

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appointing authority vested in the directors for the employees of the departments under applicable

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general and public laws.

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     42-64.18-9. Appropriations and disbursements. -- The general assembly shall annually

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appropriate such sums as it may deem necessary for the purpose of carrying out the provisions of

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this chapter. The state controller is hereby authorized and directed to draw his or her orders upon

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the general treasurer for the payment of such sum or sums, or so much thereof as may from time

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to time be required, upon receipt by him or her of proper vouchers approved by the secretary of

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the executive office of commerce, or his or her designee.

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     42-64.18-10. Rules and regulations. -- The executive office of commerce shall be

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deemed an agency for purposes of section 42-35-1, et seq. of the Rhode Island general laws. The

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secretary shall make and promulgate such rules and regulations, fee schedules not inconsistent

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with state law and fiscal policies and procedures as he or she deems necessary for the proper

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administration of this chapter and to carry out the policy and purposes thereof.

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     42-64.18-11. Severability. -- If any provision of this chapter or the application thereof to

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any person or circumstance is held invalid, such invalidity shall not affect other provisions or

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applications of the chapter, which can be given effect without the invalid provision or application,

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and to this end the provisions of this chapter are declared to be severable.

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     42-64.18-12. Cooperation of other state executive branch agencies. -- As may be

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appropriate from time to time, the departments and other agencies of the state of the executive

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branch that have not been assigned to the executive office of commerce under this chapter shall

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assist and cooperate with the executive office as may be required by the governor requested by

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the secretary.

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     SECTION 2. Sections 42-64.13-3, 42-64.13-5 and 42-64.13-6 of the General Laws in

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Chapter 42-64.13 entitled "Rhode Island Regulatory Reform Act" are hereby amended to read as

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follows:

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     42-64.13-3. Purposes of chapter. -- The purposes of this chapter are to create within the

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office of management and budget Rhode Island executive office of commerce, the office of

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regulatory reform that will facilitate the regular review of Rhode Island's regulatory processes and

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permitting procedures, report thereon in an effort to improve them and assist and facilitate

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economic development opportunities within the regulatory and permitting processes and

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procedures that exist within Rhode Island state and municipal government.

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     42-64.13-5. Creation of the office of regulatory reform. -- The office of management

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and budget Rhode Island executive office of commerce shall create and maintain an office of

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regulatory reform that shall be adequately staffed and supervised in order to fulfill its functions as

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set forth in this chapter.

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     42-64.13-6. Director of office of regulatory reform. -- The office of regulatory reform

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shall be managed by a director of office of regulatory reform who shall report to the director of

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the office of management and budget secretary of commerce within the Rhode Island executive

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office of commerce.

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     SECTION 3. This act shall take effect on January 1, 2014.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- EXECUTIVE OFFICE OF

COMMERCE

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     This act would establish a new executive office of commerce to develop an integrated

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system of economic development activities in the state. This act would also create a secretary of

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commerce to be appointed by the governor, to administer the office of commerce and provide

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economic leadership for the state.

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     This act would take effect on January 1, 2014.

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