2013 -- S 1048

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LC02968

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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: Senator Ryan W. Pearson

     Date Introduced: July 03, 2013

     Referred To: Senate Commerce

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 6.1

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GOVERNOR'S COMMERCE AND WORKFORCE COORDINATION CABINET

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     42-6.1-1. Creation -- Members. -- There is hereby established within the executive

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branch of state government a commerce and workforce coordination cabinet comprised of

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officials from state agencies with responsibility and oversight relating to economic and workforce

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development. The cabinet shall include, but not be limited to, the following members, upon his or

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her appointment: the secretary of commerce, the director of the economic development

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corporation, the director of the department of transportation, the director of the department of

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

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services, the commissioner of higher education, the commissioner of elementary and secondary

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education, the director of the department of business regulation, the director of the department of

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

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the department of corrections, the chair of the governor's workforce board, and the executive

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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 be

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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 section 42-64.15.

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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 an office of regulatory reform

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that shall be adequately staffed and supervised in order to fulfill its functions as set forth in this

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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. 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 64.19

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EXECUTIVE OFFICE OF COMMERCE

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     42-64.19-1. 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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     42-64.19-2. 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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     42-64.19-3. 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 February 1,

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2015, to serve as the principal agency of the executive branch of state government for managing

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

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powers and duties in accordance with the following schedule:

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     (1) On or about February 1, 2015, to operate functions from the department of business

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regulation;

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     (2) On or about April 1, 2015, to operate various divisions and functions from the

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department of administration;

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     (3) On or before September 1, 2015, to provide to the Senate and the House of

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Representatives a comprehensive study and review of the roles, functions, and programs of the

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Department of Administration and the Department of Labor and Training to devise

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recommendations and a business plan for the integration of these entities with the office of the

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secretary of commerce. The governor may include such recommendations in the Fiscal Year 2017

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budget proposal.

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     (b) In this capacity, the office shall:

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     (1) Lead or assist state departments and coordinate business permitting processes in order

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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 include the office of regulatory reform and other administration

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functions which promote, enhance or regulate various service and functions in order to promote

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the reform and improvement of the regulatory function of the state.

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     42-64.19-4. 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 with the advice and consent of the senate. The secretary shall hold

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office at the pleasure of the governor and until a successor is appointed and qualified. Before

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entering upon the discharge of duties, the secretary shall take an oath to faithfully execute the

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duties of the office. The secretary shall be appointed by February 1, 2015.

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     42-64.19-5. Responsibilities of the secretary. -- (a) The secretary shall be responsible to

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the governor for supervising the executive office of commerce, improving the functions and

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operations of Rhode Island state government to be clear, reliable, predictable, and as responsive

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and user-friendly to the state’s business community as is practicable, for managing and providing

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strategic leadership and direction to the other divisions and departments under the jurisdiction of

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this chapter, for serving as the chief executive officer of the Rhode Island commerce corporation,

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for convening the economic development planning council to develop the economic development

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policy and strategic plan in accordance with section 42-64.16, for serving as chair of the council

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of economic advisors in accordance with section 42-64.17; for serving as vice-chair of the Human

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Resources Investment Council; and for chairing the Governor’s Commerce and Workforce

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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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     42-64.19-6. 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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     (1) 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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     (2) 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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     (3) Review and ensure the coordination of the development of an overarching economic

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development plan as produced by the office.

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     (4) 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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     (5) Engage in regulatory reform across all state agencies to protect the health and

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wellbeing of Rhode Islanders while meeting business needs for a clear, predictable, and reliable

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regulatory structure in the state; including the implementation of systems to enhance customer

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service by simplifying and expediting state permitting processes.

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     (6) Prepare and submit to the governor, the chairpersons of the house and senate finance

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committees, and the caseload estimating conference, by no later than April 15 of each year, a

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comprehensive overview of the Rhode Island economy. The secretary shall determine the

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

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will inform the governor, and the revenue estimating committee on the economic conditions of

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the state and future issues and forward looking projects of the Rhode Island economy.

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     (7) 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 information and support shall be necessary.

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     (8) Resolve administrative, jurisdictional, operational, program, or policy conflicts

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among departments and their executive staffs and make necessary recommendations to the

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governor.

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     (9) Assure continued progress toward improving the quality, the accountability, and the

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efficiency of state-administered programs to support the Rhode Island economy. In this capacity,

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the secretary shall:

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     (i) 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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     (ii) Encourage departments to utilize consumer-centered approaches to service design and

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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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     (iii) 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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     (iv) 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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     (10) Prepare and integrate comprehensive budgets for the commerce services departments

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and functions and duties assigned to the office. The budgets shall be submitted to the state budget

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

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

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laws.

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     (11) 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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     (12) 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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     (13) At the direction of the governor or the general assembly, conduct independent

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

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

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

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information and assistance deemed necessary by the secretary when undertaking such

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independent reviews.

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     (14) 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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     (15) 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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     (16) 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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     42-64.19-7. 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 departments, offices, or divisions assigned to the

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secretary from fulfilling any 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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     (e) 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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     (f) 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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     (g) On or about February 1, 2015, the office shall commence to operate all functions

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currently assigned to the department of business regulation (DBR)

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     (h) On or about April 1, 2015, the office shall commence to operate the regulatory reform

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and housing/community development functions currently assigned to the department of

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administration.

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     (i) In addition to the requirements of RIGL section 35-3-7, budgets submitted by the

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impacted state departments for state fiscal years 2015 and 2016 shall include provisions to

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implement this section.

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     42-64.19-8. 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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     42-64.19-9. 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 authenticated vouchers approved by the

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

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     42-64.19-10. 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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     42-64.19-11. 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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     42-64.19-12. 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 4. Sections 42-102-2, 42-102-3 and 42-102-6 of the General Laws in Chapter

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42-102 entitled "Rhode Island Human Resource Investment Council" are hereby amended to read

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as follows:

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     42-102-2. Composition of council. -- (a) Effective until January 1, 2005, the council

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shall be composed of twenty-seven (27) members of whom no less than one-third (1/3) shall be

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women as follows:

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      (1) One shall be appointed by the governor from the nongovernmental sector to serve as

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chairperson of the council;

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      (2) Eight (8) shall be appointed by the governor from the employer community, two (2)

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of whom shall be from the nonprofit sector, and at least two (2) of whom must be women from

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the following employer groups:

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      (i) Two (2) from companies with fewer than twenty-five (25) employees;

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      (ii) Two (2) from companies with twenty-five (25) to two hundred fifty (250) employees;

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      (iii) Two (2) from companies with more than two hundred fifty (250) employees; and

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      (iv) Two (2) from minority-owned companies;

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      (3) Three (3) members from organized labor shall be appointed by the governor;

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      (4) One member from a community-based organization representing minorities shall be

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appointed by the governor;

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      (5) One individual who serves as the chairperson of the governor's commission on

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disabilities;

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      (6) Six (6) individuals shall serve on the council by virtue of their respective positions as

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chairpersons of the following organizations:

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      (i) Three (3) individuals, who serve as chairpersons of their respective private industry

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councils;

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      (ii) One individual who serves as chairperson of the Rhode Island state apprenticeship

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council; and

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      (iii) One individual who serves as chairperson of the pathways to independence advisory

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council;

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      (7) The president of the senate and the speaker of the house shall appoint one individual

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each from their respective chambers to become members of the council;

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      (8) The directors or commissioners of the following four (4) departments and

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corporation shall serve on the council: employment and training, Rhode Island economic

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development corporation, human services, elementary and secondary education, and higher

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education;

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      (9) The executive director of the Rhode Island economic policy council shall serve on

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the council; and

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      (10) Any individual serving on the council as of June 1, 2004 shall remain on the council

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until the new members are appointed and confirmed by the senate.

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     (b) Effective January 1, 2005, the The council shall be composed of fifteen (15)

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members, the secretary of commerce, who shall be vice-chair, thirteen (13) twelve (12) members

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appointed by the governor, with the advice and consent of the senate, at least four (4) of whom

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shall be women, at least three (3) of whom shall be from minority communities, and at least one

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of whom shall be a person with disabilities, as follows:

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      (1) One shall be appointed by the governor to serve as chairperson of the council;

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      (2) Six (6) Five (5) shall be appointed by the governor from the employer community, in

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a manner that is representative of employers of different sizes and sectors, including the nonprofit

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sector; provided, however, that in the event that there is established a state workforce investment

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board that is separate and distinct from the council, then one of the six (6) five (5) representatives

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of the employer community shall be the chairperson of the state work force investment board, and

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if all employer community appointments have been duly made and are filled, then the appointed

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chairperson of the state workforce investment board shall be made with the next available

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appointment of a representative of the employer community;

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      (3) Four (4) members from organized labor shall be appointed by the governor;

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      (4) Two (2) members from community-based organizations shall be appointed by the

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governor;

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      (5) The president of the senate and the speaker of the house shall appoint one individual

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each from their respective chambers to be members of the council.

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      (c) Transitional Provisions. - The council as provided for in subsection (b) shall assume

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the powers, duties and responsibilities set forth in this chapter, and the council as provided for in

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subsection (a) shall be terminated, and shall cease to exist and all the powers, duties, and

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responsibilities of the council as provided for in subsection (a) shall be transferred to the council

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as provided in subsection (b); the governor may appoint persons serving on the council as

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provided for in subsection (a) to the council as provided for in subsection (b), as provided for in

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section 42-102-4(a), and may appoint an interim executive director who shall serve until such

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time as an executive director is appointed in accordance with section 42-102-3(b). All rules,

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regulations, decisions, actions, and approvals taken by the council as provided in subsection (a)

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shall remain in full force and effect until superseded, amended, revised, or rescinded by the

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council as provided for in subsection (b). The present council will continue its duties and

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responsibilities until the new members of the council are appointed and a number sufficient to

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satisfy a quorum are confirmed by the senate.

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     42-102-3. Officers. -- (a) The position of chairperson shall be unpaid and the individual

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that is appointed chairperson shall serve a three (3) year term. The governor may reappoint the

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individual appointed chairperson to serve another three (3) year term. The council shall elect from

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its own members a vice-chairperson, who is authorized to preside over meetings in the absence of

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the chairperson.

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     (b) The secretary of commerce shall be vice-chair, and is authorized to preside over

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meetings in the absence of the chairperson.

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     (b)(c) Executive director. - The council, in consultation with the governor, shall appoint

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an executive director who shall serve at the pleasure of the council, provided that the executive

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director's initial engagement by the council shall be for a period of not more than three (3) years.

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The position of executive director shall be in the unclassified service of the state and he or she

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shall serve as the chief executive officer of the council.

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     42-102-6. Duties. -- (a) The council shall meet with other entities involved with

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vocational education, labor, and training and shall be responsible for the planning of labor and

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training activities to ensure that a comprehensive and cohesive plan is developed. The council

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shall take into consideration the needs of all segments of the state's citizenry in establishing goals

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and training objectives.

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      (b) The council shall establish policy to ensure the effectiveness and efficiency of

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programs and activities as they pertain to labor and training, including the workforce needs of

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state employers.

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      (c) The council shall provide funding for special projects that will increase and improve

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the skill base of Rhode Island's workforce. The council shall take into account labor market

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information from the Rhode Island economic development corporation to help establish training

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needs. In addition, the council shall have the following responsibilities:

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      (1) Prepare and submit by September 1, 1992 and thereafter annually, a proposed budget

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for the ensuing year for the governor's approval;

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      (2) The auditor general shall conduct annual audits of all financial accounts and any

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other audits that he or she shall deem necessary.

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      (3) Ensure that, for those contracts or grants characterized as training or upgrading, the

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administrative expenses of the private or public entity awarded the contract or grant shall not

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exceed fifteen percent (15%) of the total contract or grant.

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      (4) Receive any gifts, grants, or donations made and to disburse and administer them in

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accordance with the terms thereof; and

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      (5) Allocate moneys from the job development fund for projects to implement the

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recommendations of the council, including, but not limited to, technology transfers or technical

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assistance to manufacturers to improve their operations through the use of appropriate

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technologies; provided, that for fiscal year 2005, a minimum of three million four hundred

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thousand dollars ($3,400,000) from the job development fund shall be allocated for adult literacy

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programs.

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      (6) Within ninety (90) days after the end of each fiscal year, the council shall approve

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and submit an annual report to the governor, the speaker of the house, the president of the senate,

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and the secretary of state, of its activities during the fiscal year. The report shall provide: an

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operating statement summarizing meetings or hearings held, meeting minutes if requested,

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subjects addressed, decisions rendered, rules and regulations promulgated, studies conducted,

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policies and plans developed, approved or modified, and programs administered or initiated; a

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consolidated financial statement of all funds received and expended including the source of funds,

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a listing of any staff supported by these funds, and a summary of clerical, administrative,

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professional or technical reports received; a summary of performance during the previous fiscal

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year including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints,

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suspensions or other legal matters related to the authority of the council; a summary of any

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training courses held pursuant to subsection 42-102-2(c); a briefing on anticipated activities in the

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upcoming fiscal year; and findings and recommendations for improvement. The report, within

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thirty (30) days of its completion, shall be posted electronically on the general assembly and

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secretary of state's websites. The director of the department of administration shall be responsible

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for the enforcement of this provision.

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SECTION 5. Section 1 of this act shall take effect upon passage. Sections 2, 3, and 4

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shall take effect on February 1, 2015.

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LC02968

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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 create the executive office of commerce.

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     Section 1 of this act would take effect upon passage. Sections 2, 3, and 4 would take

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effect on February 1, 2015.

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LC02968

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