2015 -- H 5887

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LC002032

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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 -- EXECUTIVE OFFICE OF

COMMERCE

     

     Introduced By: Representatives Serpa, Ruggiero, Filippi, Solomon, and Ackerman

     Date Introduced: March 13, 2015

     Referred To: House Finance

     (Executive Office of Commerce)

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 42-6.1 of the General Laws entitled "Governor's Commerce and

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Workforce Coordination Cabinet" is hereby repealed in its entirety.

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CHAPTER 42-6.1

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Governor's Commerce and Workforce Coordination Cabinet

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     42-6.1-1. Creation -- Members. [Effective February 1, 2015.] -- There is hereby

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established within the executive branch of state government a commerce and workforce

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coordination cabinet comprised of officials from state agencies with responsibility and oversight

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relating to economic and workforce development. The cabinet shall include, but not be limited to,

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the following members, upon his or her appointment: the secretary of commerce, the director of

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the economic development corporation, the director of the department of transportation, the

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director of the department of administration, the director of the division of revenue, the director

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of the department of human services, the commissioner of higher education, the commissioner of

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elementary and secondary education, the director of the department of business regulation, the

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director of the department of environmental management, the director of the department of labor

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and training, the director of the department of corrections, the chair of the governor's workforce

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board, or his or her designee, and the executive director of Rhode Island housing.

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     42-6.1-2. Appointment of chair -- Meetings. -- (a) The cabinet shall be co-chaired by

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the director of the economic development corporation and the director of the department of labor

 

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and training until such time that the secretary of commerce is appointed.

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      (b) Upon the appointment of a secretary of commerce, the secretary of commerce shall

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be chair.

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     42-6.1-3. Purpose of cabinet. -- The governor's commerce and workforce coordinating

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cabinet shall provide for the integration and coordination of the activities of the various agencies

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and departments that are involved in the development of the Rhode Island economy and its

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workforce and ensure the consistent implementation of the economic development policy and

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strategic plan developed in accordance with § 42-64.17-1.

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     SECTION 2. Section 42-34-4 of the General Laws in Chapter 42-34 entitled "Industrial-

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Recreational Building Authority" is hereby amended to read as follows:

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     42-34-4. Organization of authority. -- (a) The Rhode Island industrial-recreational

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building authority, hereinafter in this chapter called the "authority", hereby created and

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established a body corporate and politic, is constituted a public instrumentality of the state, and

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the exercise by the authority of the powers conferred by the provisions of this chapter shall be

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deemed and held to be the performance of essential governmental functions. The authority shall

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consist of five (5) six (6) members, five (5) of whom shall be appointed by the governor for a

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period of five (5) years, as herein provided. The secretary of commerce shall serve as a member

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of the board, and as chairperson, ex officio, who shall vote only in the event of a tie.

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      (b) During the month of January, 1959, the governor shall appoint one member to serve

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until the first day of February, 1960, and until his or her successor is appointed and qualified, one

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member to serve until the first day of February, 1961, and until his or her successor is appointed

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and qualified, one member to serve until the first day of February, 1962, and until his or her

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successor is appointed and qualified, one member to serve until the first day of February, 1963,

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and until his or her successor is appointed and qualified, and one member to serve until the first

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day of February, 1964, and until his or her successor is appointed and qualified.

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      (c) During the month of January, 1960, and during the month of January annually

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thereafter, the governor shall appoint a member to succeed the member whose term will then next

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expire, to serve for a term of five (5) years commencing on the first day of February then next

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following and until his or her successor is appointed and qualified. A member shall be eligible to

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succeed himself or herself.

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      (d) A vacancy in the office of a member, other than by expiration, shall be filled in like

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manner as an original appointment, but only for the remainder of the term of the retiring member.

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Members may be removed by the governor for cause.

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      (e) The authority may elect such additional officers from among its members as may be

 

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required to conduct the authority's business. The director of the department of economic

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development shall serve as executive director and chief executive officer, ex officio, of the

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authority. Three (3) members of the authority shall constitute a quorum and the affirmative vote

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of a majority of the members, present and voting, shall be necessary for any action taken by the

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authority; except that, in no case shall any action taken by the authority be taken by an affirmative

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vote of less than three (3) members. No vacancy in the membership of the authority or

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disqualification of a member under § 42-34-16 shall impair the right of the quorum to exercise all

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rights and perform all the duties of the authority. All of the members of the authority shall be

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reimbursed for their actual expenses necessarily incurred in the performance of their duties.

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      (f) Appointments made under this section after the effective date of this act [April 20,

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2006] shall be subject to the advice and consent of the senate.

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      (g) Newly appointed and qualified public members and designees of ex-officio members

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shall, within six (6) months of their qualification or designation, attend a training course that shall

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be developed with authority approval and conducted by the chairperson of the authority and shall

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include instruction in the following areas: the provisions of chapters 42-34, 42-46, 36-14 and 38-

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2; and the authority's rules and regulations. The director of the department of administration shall,

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within ninety (90) days of the effective date of this act [April 20, 2006] prepare and disseminate

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training materials relating to the provisions of chapters 42-46, 36-14 and 38-2.29.

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      (h) Members of the authority shall be removable by the governor pursuant to § 36-1-7 of

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the general laws and for cause only, and removal solely for partisan or personal reasons unrelated

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to capacity or fitness for the office shall be unlawful.

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      (i) The authority shall approve and submit a biannual report, each October 1st and each

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April 1st, to the governor, the speaker of the house of representatives, the president of the senate,

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and the secretary of state, of its activities during the previous six (6) months. The report shall

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provide: an operating statement summarizing meetings or hearings held, meeting minutes if

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requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies

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conducted, policies and plans developed, approved, or modified, and programs administered or

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initiated; a detailed review of the authority's loan guarantee program, including a summary of

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each approved project, the guarantee amount for each approved project, and estimated jobs

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created or retained for each approved project; a consolidated financial statement of all funds

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received and expended including the source of the funds, a listing of any staff supported by these

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funds, and a summary of any clerical, administrative or technical support received; a summary of

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performance during the previous fiscal year including accomplishments, shortcomings and

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remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the

 

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authority of the authority; a summary of any training courses held pursuant to subsection (i) of

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this section; a briefing on anticipated activities in the upcoming fiscal year; and findings and

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recommendations for improvements. The report shall be posted electronically on the general

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assembly and the secretary of states state's websites as prescribed in § 42-20-8.2 of the Rhode

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Island general laws. The director of the department of administration shall be responsible for the

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enforcement of this provision.

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     SECTION 3. Section 42-55-4 of the General Laws in Chapter 42-55 entitled "Rhode

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Island Housing and Mortgage Finance Corporation" is hereby amended to read as follows:

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     42-55-4. Creation of corporation -- Composition -- Personnel -- Compensation. -- (a)

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There is authorized the creation and establishment of a public corporation of the state, having a

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distinct legal existence from the state and not constituting a department of the state government,

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with the politic and corporate powers as are set forth in this chapter to be known as the "Rhode

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Island housing and mortgage finance corporation" to carry out the provisions of this chapter. The

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corporation is constituted a public instrumentality exercising public and essential governmental

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functions, and the exercise by the corporation of the powers conferred by this chapter shall be

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deemed and held to be the performance of an essential governmental function of the state. It is the

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intent of the general assembly by the passage of this chapter to authorize the incorporation of a

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public corporation and instrumentality and agency of the state for the purpose of carrying on the

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activities authorized by this chapter, and to vest the corporation with all of the powers, authority,

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rights, privileges, and titles that may be necessary to enable it to accomplish these purposes. This

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chapter shall be liberally construed in conformity with the purpose expressed.

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      (b) The powers of the corporation shall be vested in seven (7) commissioners consisting

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of the director of administration, or his or her designee; the general treasurer, or his or her

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designee; the director of business regulations the secretary of commerce, or his or her designee;

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and four (4) members to be appointed by the governor with the advice and consent of the senate

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who shall among them be experienced in all aspects of housing design, development, finance,

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management, and state and municipal finance. On or before July 1, 1973, the governor shall

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appoint one member to serve until the first day of July, 1974 and until his or her successor is

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appointed and qualified, one member to serve until the first day of July, 1975, and until his or her

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successor is appointed and qualified, one member to serve until the first day of July, 1976 and

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until his or her successor is appointed and qualified, one member to serve until the first day of

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July, 1977 and until his or her successor is appointed and qualified. During the month of June,

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1974, and during the month of June annually thereafter, the governor shall appoint a member to

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succeed the member whose term will then next expire to serve for a term of four (4) years

 

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commencing on the first day of July then next following and until his or her successor is

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appointed and qualified. A vacancy in the office of a commissioner, other than by expiration,

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shall be filled in like manner as an original appointment, but only for the unexpired portion of the

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term. If a vacancy occurs when the senate is not in session, the governor shall appoint a person to

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fill the vacancy, but only until the senate shall next convene and give its advice and consent to a

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new appointment. A member shall be eligible to succeed him or herself. The governor shall

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designate a member of the corporation to serve as chairperson, and the secretary of commerce

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shall serve as vice chairperson. Any member of the corporation may be removed by the governor

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for misfeasance, malfeasance, or willful neglect of duty.

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      (c) The commissioners shall elect from among their number a vice-chairperson such

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other officers annually and those other officers as they may determine. Meetings shall be held at

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the call of the chairperson or whenever two (2) commissioners so request. Four (4)

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commissioners of the corporation shall constitute a quorum and any action taken by the

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corporation under the provisions of this chapter may be authorized by resolution approved by a

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majority but not less than three (3) of the commissioners present at any regular or special

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meeting. No vacancy in the membership of the corporation shall impair the right of a quorum to

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exercise all of the rights and perform all of the duties of the corporation.

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      (d) Commissioners shall receive no compensation for the performance of their duties, but

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each commissioner shall be reimbursed for his or her reasonable expenses incurred in carrying

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out his or her duties under this chapter.

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      (e) Notwithstanding the provisions of any other law, no officer or employee of the state

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shall be deemed to have forfeited or shall forfeit his or her office or employment by reason of his

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or her acceptance of membership of the corporation or his or her service to the corporation.

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      (f) The commissioners shall employ an executive director who shall also be the secretary

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and who shall administer, manage, and direct the affairs and business of the corporation, subject

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to the policies, control, and direction of the commissioners. The commissioners may employ

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technical experts and other officers, agents, and employees, permanent and temporary, and fix

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their qualifications, duties, and compensation. These employed persons shall not be subject to the

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provisions of the classified service. The commissioners may delegate to one or more of their

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agents or employees those administrative duties they may deem proper.

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      (g) The secretary shall keep a record of the proceedings of the corporation and shall be

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custodian of all books, documents, and papers filed with the corporation and of its minute book

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and seal. He or she, or his or her designee, or the designee of the board of commissioners, shall

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have authority to cause to be made copies of all minutes and other records and documents of the

 

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corporation and to give certificates under the seal of the corporation to the effect that the copies

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are true copies and all persons dealing with the corporation may rely upon the certificates.

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      (h) Before entering into his or her duties, each commissioner of the corporation shall

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execute a surety bond in the penal sum of fifty thousand dollars ($50,000) and the executive

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director shall execute a surety bond in the penal sum of one hundred thousand dollars ($100,000)

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or, in lieu of this, the chairperson of the corporation shall execute a blanket bond covering each

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commissioner, the executive director and the employees or other officers of the corporation, each

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surety bond to be conditioned upon the faithful performance of the duties of the office or offices

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covered, to be executed by a surety company authorized to transact business in this state as surety

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and to be approved by the attorney general and filed in the office of the secretary of state. The

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cost of each bond shall be paid by the corporation.

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      (i) Notwithstanding any other law to the contrary, it shall not be or constitute a conflict

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of interest for a director, officer, or employee of any financial institution, investment banking

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firm, brokerage firm, commercial bank or trust company, architecture firm, insurance company,

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or any other firm, person, or corporation to serve as a member of the corporation. If any

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commissioner, officer, or employee of the corporation shall be interested either directly or

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indirectly, or shall be a director, officer, or employee of or have an ownership interest in any firm

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or corporation interested directly or indirectly in any contract with the corporation, including any

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loan to any housing sponsor or health care sponsor, that interest shall be disclosed to the

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corporation and shall be set forth in the minutes of the corporation and the commissioner, officer,

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or employee having an interest therein shall not participate on behalf of the corporation in the

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authorization of this contract.

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     SECTION 4. Section 42-64.19-5 of the General Laws in Chapter 42-64.19 entitled

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"Executive Office of Commerce" is hereby amended to read as follows:

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     42-64.19-5. Responsibilities of the secretary. [Effective February 1, 2015.] -- (a) The

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secretary shall be responsible to the governor for supervising the executive office of commerce,

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improving the functions and operations of Rhode Island state government to be clear, reliable,

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predictable, and as responsive and user-friendly to the state's business community as is

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

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

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

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council to develop the economic development policy and strategic plan in accordance with

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

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section 42-64.17; for serving as vice-chair of the Human Resources Investment Council; for

 

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serving as the chairperson of the board of the Rhode Island industrial facilities corporation in

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accordance with § 45-37.1-4; and for serving as the chairperson of the board of the Rhode Island

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industrial – recreational building authority in accordance with § 42-34-4. and for chairing the

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Governor's Commerce and Workforce Cabinet established pursuant to section 42-6.1.

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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 with the

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consent of the governor.

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     (c) The secretary shall be entitled to designate one or more persons to act as his or her

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designee on any board, council or similar body on which the secretary serves.

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     SECTION 5. Section 45-37.1-4 of the General Laws in Chapter 45-37.1 entitled

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"Industrial Facilities Corporation" is hereby amended to read as follows:

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     45-37.1-4. Rhode Island industrial facilities corporation constituted public body

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corporate and agency of the state. -- (a) The Rhode Island industrial facilities corporation,

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previously created as a nonbusiness corporation, under and pursuant to chapter 6 of title 7, as

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amended by chapter 121 of the Public Laws of 1966, is constituted and established as a public

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body corporate and agency of the state for the purposes of acquiring, constructing, financing, and

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leasing projects, as defined in this chapter, within the state. The exercise by the corporation of the

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powers conferred by this chapter are deemed and held to be the performance of an essential

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governmental function.

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      (b) All of the powers of the corporation are vested in the board of directors of the

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corporation previously elected at the first meeting of the incorporators of the Rhode Island

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industrial facilities corporation, and the members of the board shall continue to serve for the

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duration of the terms for which they were originally elected. Successors to the members of the

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board of directors shall be appointed by the governor, as follows: prior to the month of June in

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each year, commencing in the year 1967, the governor shall appoint a member to serve on the

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board of directors for a term of five (5) years to succeed the member whose term will expire in

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June of that year. In the event of a vacancy occurring in the membership of the board of directors,

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the governor shall appoint a new member of the board of directors for the unexpired term. Any

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member of the board of directors shall be eligible for reappointment. In addition, the secretary of

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commerce shall serve as a member of the board and as chairperson, ex officio, who shall vote

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only in the event of a tie.

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      (c) Each member of the board of directors, before entering upon his or her duties, shall

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take an oath to administer the duties of his or her office faithfully and impartially, and the oath

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shall be filed in the office of the secretary of state.

 

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      (d) The board of directors may elect additional officers, who need not be members of the

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board, as may be required to conduct the authority's business. The director of the department of

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economic development shall serve as executive director and chief executive officer, ex officio, of

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the corporation. Three (3) members of the board of directors of the corporation constitutes a

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quorum, and the vote of three (3) members of the board of directors is necessary for any action

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taken by the corporation. No vacancy in the membership of the board of directors of the

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corporation shall impair the right of a quorum to exercise all the powers and perform the duties of

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the corporation.

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      (e) Any action taken by the corporation under the provisions of this chapter may be

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authorized by resolution at any regular or special meeting, and each resolution takes effect

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immediately and need not be published or posted.

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      (f) The members of the board of directors and the officers of the corporation shall

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receive no compensation for the performance of their duties under this chapter, but each member

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or officer shall be paid his or her necessary expenses incurred while in the performance of those

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duties.

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     SECTION 6. 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 -- EXECUTIVE OFFICE OF

COMMERCE

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     This act would repeal the provisions of the general laws creating the governor's

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commerce and workforce coordination cabinet; provide that the secretary of commerce act as

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chairperson on the boards of the industrial facilities corporation and the industrial – recreational

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building authority; and substitute the secretary of commerce as vice chairperson on the board of

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Rhode Island housing mortgage finance corporation, in place of the director of business

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regulation.

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     This act would take effect upon passage.

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