2015 -- H 5749

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LC001331

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- LEAN GOVERNMENT

INITIATIVE ACT

     

     Introduced By: Representatives Solomon, Serpa, Shekarchi, Blazejewski, and Marshall

     Date Introduced: February 26, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 42-64.13-2, 42-64.13-3, 42-64.13-4 and 42-64.13-7 of the General

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Laws in Chapter 42-64.13 entitled "Rhode Island Regulatory Reform Act" are hereby amended to

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read as follows:

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     42-64.13-2. Legislative findings. -- The general assembly finds and declares that:

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      (1) Rhode Island is facing an economic and fiscal crisis and is suffering high

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unemployment and other ill effects from the national recession that persists at the time of the

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passage of this act;

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      (2) Rhode Island maintains regulatory processes and permitting procedures that, while

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often protecting the public welfare, health and safety, are often inefficient, inconsistent with other

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state policies and not always aligned with municipal and community development goals;

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      (3) The result of inefficiencies, inconsistencies and misalignments often result in delayed

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or forgone permitting and regulatory opportunities for businesses desiring to retain or create jobs

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in Rhode Island; and

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      (4) Rhode Island can more efficiently and consistently implement its regulatory and

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permitting frame work in order to enhance economic development, community development and

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the overall health and welfare of its citizens.

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     (5) As used in the chapter, "Lean" means a business-oriented system for organizing,

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managing and improving the delivery of government services, operations, suppliers, and

 

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consumer relations to create a precise consumer value, expressed as providing higher quality

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services and fewer defects and errors and with less human effort, less space, less capital, and less

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time than more traditional systems.

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     (6) The Lean government initiative will involve comprehensively mapping processes to

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define and understand what is happening in government and to identify "waste," as defined in the

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context of Lean analysis, in their processes.

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     (7) The Lean government initiative will help state departments and agencies to formulate

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plans to eliminate waste, making sure the processes result in more timely and predictable

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outcomes.

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     (8) The Lean government initiative will streamline how government's work gets done by:

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     (i) Eliminating or drastically reducing backlog;

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     (ii) Reducing lead times;

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     (iii) Simplifying processes;

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     (iv) Improving the suitability of applicants and consistency of reviews, and inspections;

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     (v) Freeing up more time for "mission-critical" work; and

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     (vi) Improving staff morale and process transparency.

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     (9) The Lean initiatives in private industry have been very successful in improving

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quality, cost effectiveness, service delivery and responsiveness to its customers.

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     42-64.13-3. Purposes of chapter. [Effective February 1, 2015.] -- The purposes of this

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chapter are to create within the office of management and budget, the office of regulatory reform

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

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procedures; report thereon in an effort to improve them; and assist and facilitate economic

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development opportunities within the regulatory and permitting processes and procedures that

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exist within Rhode Island state and municipal government, and to ensure the implementation of

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Lean tools and enterprises as a component of a performance management system for all state

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government departments, boards, commissions, and agencies.

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     42-64.13-4. Applicability. -- The provisions of this chapter shall apply to all

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departments, agencies, authorities, corporations, commissions, instrumentalities and political

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subdivisions of the state, to all other entities that have been delegated regulatory and permitting

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authority under state law, and all municipalities within the state, including their boards and

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commissions with regulatory and permitting authority and responsibilities.

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     42-64.13-7. Powers of the office of regulatory reform. -- The office of regulatory

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reform shall have the following powers:

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      (1) The director of the office of regulatory reform is authorized to intervene or otherwise

 

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participate in any regulatory or permitting matter pending before any executive branch agency or

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department or before any municipal board, commission, agency or subdivision thereof at which a

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regulatory or permitting matter is pending for the expressed net benefit of a business. The director

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of the office of regulatory reform may so intervene or otherwise participate in such pending

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regulatory and permitting matters by providing written notice to the director of any department or

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state agency in the executive branch, or the chairman or presiding officer over any municipal

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department or subdivision thereof at which a regulatory or permitting matter is pending, that the

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director of the office of regulatory reform is so intervening or otherwise participating in such

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regulatory or permitting matter pending before such department, agency, board or commission.

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The director of the office of regulatory reform shall be considered a party to the action and shall

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be provided reasonable notice of any and all administrative hearings or meetings involving the

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parties in such matter and shall be the opportunity to participate in such meetings, hearings or

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other administrative procedures of such entity, of which such opportunity may be waived only by

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writing from the director of the office of regulatory reform, for the purpose of assuring the

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efficient and consistent implementation of rules and regulations in order to foster the creation and

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retention of jobs in Rhode Island or otherwise foster economic development in Rhode Island

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consistent with the purposes of this act. Any intervention or participation by the director of the

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office of regulatory reform, other than in contested cases, shall not be deemed to violate the

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provisions of the Rhode Island administrative procedures act at Title 42, Chapter 35 of the

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general laws. Provided, however, all contested cases shall be conducted in accordance with the

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provisions for hearings of contested cases in the administrative procedures act, Title 42, Chapter

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35, of the general laws. As used in this section, the term "contested case" means a proceeding in

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which conflicting rights between adverse parties are required by law to be determined in an

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adversary proceeding that is judicial or quasi-judicial in nature, and not purely administrative in

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character, before and/or by an agency.

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      (2) Promptly upon such intervention as set forth in subdivision (1) above, the director of

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the office of regulatory reform shall publish its rationale for its intervention in such pending

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regulatory or permitting matter. The director of the office of regulatory reform may so intervene

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upon findings that:

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      (i) That the pending, regulatory or permitting action, in and of itself or as part of a

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regulatory process, has significant economic development impact upon the state or any

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municipality herein; and

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      (ii) The pending regulatory or permitting matter, in and of itself or as part of a regulatory

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process, has significant impact on any industry, trade, profession or business that provides

 

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significant jobs or other significant economic development impact, including municipal and state

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taxes or other revenues, to the state or its citizens.

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      (iii) The office of regulatory reform shall upon the conclusion of each fiscal quarter

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promptly provide to the office of the governor and the general assembly through the offices of the

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president of the senate and the speaker of the house of representatives a written report identifying:

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      (A) All matters in which the director of the office of regulatory reform intervened;

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      (B) The rationale for his or her intervention;

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      (C) The status of the pending regulatory or permitting matter;

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      (D) Any observations or recommendations from the director of the office of regulatory

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reform with respect to such regulatory or permitting policies or procedures relating to the subject

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matter of such pending regulatory or permitting matters in which the director so intervened; and

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      (E) The status of the agency rule review required pursuant to subsection 42-35-3.4(d)

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including the number of rules reviewed within the previous quarter, the number of rules amended

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or rescinded and the estimated aggregate impact of such amendments or rescissions on businesses

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in Rhode Island.

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      (3) The office of regulatory reform is authorized to appear as an amicus curiae in any

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legal proceeding relating to any matter.

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      (4) The office of regulatory reform is authorized to coordinate with and support the

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building commissioner and fire marshal in the development and implementation of a standard

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statewide process for electronic plan review, permit management and inspection.

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      (5) The office of regulatory reform is authorized to coordinate, provide technical

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assistance, and oversee state agency regulatory review and accompanying economic impact

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statements on small businesses.

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     (6) Concerning the Lean government initiative, the office of regulatory reform shall:

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     (i) Create strategic and tactical approaches for Lean implementation, including

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integration into state governance and operational systems.

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     (ii) Lead and develop state government's capacity to implement Lean tools and

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enterprises, including design and development of instructional materials as needed with the goal

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of integrating continuous improvement into the organizational culture.

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     (iii) Create demand for Lean tools and enterprises in departments.

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     (iv) Communicate with department and agency directors, boards, commissions, and

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senior management to create interest and organizational will to implement Lean tools and

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enterprises to improve agency results.

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     (v) Provide direction and advice to department heads and senior management to plan and

 

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implement departmental Lean programs.

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     (vi) Direct and review plans for leadership and assist with the selection of process

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improvement projects of key importance to department and agency goals, programs, and

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missions.

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     (vii) Identify and assist departments in identifying potential Lean projects.

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     (viii) Continuously evaluate organizational performance in meeting objectives, identify

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and structure the direction that Lean implementation should take to provide greatest effectiveness,

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and justify critical and far-reaching changes.

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     (ix) Lead the collection and reporting of data and learning related to Lean

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accomplishments.

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     (x) Widely disseminate Lean results and learning to Rhode Island residents, stakeholders,

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and other members of the public to demonstrate its benefits and returns on investment.

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     (xi) Evaluate the effect of unforeseen developments on plans and programs and present to

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department and agency directors, boards, commissions, and senior management suggested

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changes in overall direction.

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     (xii) Provide input related to proposals regarding new or revised legislation, rules, and

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related changes which have a direct impact over their implementation.

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     (xiii) Lead the development of alliances and partnerships with the business community,

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associations, consultants, and other stakeholders to enhance external support and advance the

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implementation of Lean tools and enterprises in state government.

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     (xiv) Lead relations with the general assembly and staff to build support for and

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understanding of Lean work in state government.

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     SECTION 2. Chapter 42-64.13 of the General Laws entitled "Rhode Island Regulatory

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Reform Act" is hereby amended by adding thereto the following section:

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     42-64.13-8.1. Lean government initiative progress reporting. – (a) No later than

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January 1, 2016, each department, agency, board, or commission, subject to the Lean government

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initiative under this chapter, shall submit to the director of the office of regulatory reform a report

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identifying processes within their department which they wish to be self-reviewed and guide the

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self-implementation of process improvement programs. This report shall propose a time deadline

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for completion of the self-review and proposed self-implementation of process improvement

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programs.

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     (b) Beginning July 1, 2016 and each year thereafter, the office of regulatory reform shall

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send a report to the governor, the speaker of the house of representatives and the president of the

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senate which summarizes the prior year's Lean government initiative progress, as required by this

 

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chapter.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- LEAN GOVERNMENT

INITIATIVE ACT

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     This act would implement the provisions of the Lean government initiative, which has

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been adopted in the private business community and governments throughout the country, to

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eliminate waste and inefficiency in the operation of state government. It would also include a

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mandatory yearly progress reporting requirement.

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     This act would take effect upon passage.

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