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art.004/9/004/8/004/7/004/6/004/5/004/4/004/3/004/2/004/1

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ARTICLE 4 AS AMENDED

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RELATING TO GOVERNMENT ORGANIZATION

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     SECTION 1. Section 16-57-10 of the General Laws in Chapter 16-57 entitled "Higher

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Education Assistance Authority" is hereby amended to read as follows:

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     16-57-10. Reserve funds. -- To assure the continued operation and solvency of the

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authority for the carrying out of its corporate purposes, the authority may create and establish any

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reserve funds as may be necessary or desirable for its corporate purposes, and may pay into the

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funds any money appropriated and made available by the state, the commissioner, or any other

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source for the purpose of the funds, and any money collected by the authority as fees for the

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guaranty of eligible loans.

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     To assure continued solvency of the authority, the authority's operating fund shall be used

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solely for the ordinary operating expenses of the authority. Furthermore, it is the intent of the

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general assembly that these funds eventually be used to increase financial assistance to Rhode

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Island students in the form of scholarships and grants.

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     SECTION 2. Section 16-62-7 of the General Laws in Chapter 16-62 entitled "The Rhode

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Island Student Loan Authority" is hereby amended to read as follows:

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     16-62-7. Directors, officers, and employees. -- (a) The powers of the authority shall be

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vested in a board of directors consisting of six (6) members as follows: five (5) members

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appointed by the governor to the Rhode Island higher education assistance authority from among

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members of the general public, who are qualified by training or experience in education, finance,

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or personal investment consulting and made in accordance with subsection (b) of this section as

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provided in section 16-57-7, all appointments and are subject to the advice and consent of the

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senate; and the general treasurer, ex-officio. The general treasurer may designate a subordinate

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within his or her department or agency to represent him or her at all meetings of the board.

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     (b) All members appointed by the governor shall be appointed to terms of five (5) years,

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and the governor shall, during the month of January preceding the expiration of each term,

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appoint a member whose term will then next expire. In the event of a vacancy occurring in the

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office of a member by death, resignation, removal, or otherwise, the vacancy shall be filled in the

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same manner as an original appointment but only for the remainder of the term of the former

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member.

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     (b)(c) The directors shall receive no compensation for the performance of their duties

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under this chapter, but each director shall be reimbursed for his or her reasonable expenses

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incurred in carrying out those duties. A director may engage in private employment, or in a

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profession or business.

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      (c)(d) The board of directors shall elect one of its members to serve as chairperson. Four

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(4) directors shall constitute a quorum and any action to be taken by the authority under the

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provisions of this chapter may be authorized by resolution approved by a majority of the directors

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present and voting at any regular or special meeting at which a quorum is present. A vacancy in

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the membership of the board of directors shall not impair the right of a quorum to exercise all the

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rights and perform all the duties of the authority.

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      (d)(e) In addition to electing a chairperson, the board of directors shall appoint a

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secretary and any additional officers and staff members as they shall deem appropriate and shall

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determine the amount of compensation, if any, each shall receive. The board of directors may

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appoint a chief executive officer and vest in that person or his or her subordinates the authority to

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appoint additional staff members and to determine the amount of compensation each individual

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shall receive.

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      (e)(f) No fulltime employee shall during the period of his or her employment by the

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authority engage in any other private employment, profession, or business, including, but not

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limited to, consulting.

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

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

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banking firm, brokerage firm, commercial bank, trust company, savings and loan association,

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credit union, insurance company, educational institution, or any other firm, person, or corporation

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to serve as a director of the authority nor shall any contract or transaction between the authority

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and any financial institution, investment banking firm, brokerage firm, commercial bank, trust

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company, savings and loan association, credit union, insurance company, educational institution,

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or any other firm, person, or corporation be void or voidable by reason of any service as director

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of the authority. If any director, officer, or employee of the authority shall be interested either

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directly or indirectly, or shall be a director, officer, or employee of or have an ownership interest

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(other than as the owner of less than one percent (1%) of the shares of a publicly held

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corporation) in any firm or corporation interested directly or indirectly in any contract with the

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authority, that interest shall be disclosed to the authority and set forth in the minutes of the

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authority, and the director, officer, or employee having that interest in it shall not participate on

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behalf of the authority in the authorization of this contract. Interested directors may be counted in

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determining the presence of a quorum at a meeting of the board of directors of the authority

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which authorizes the contract or transaction.

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      (g)(h) Any action taken by the authority under the provisions of this chapter may be

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authorized by vote at any regular or special meeting, and each vote shall take effect immediately.

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      (h)(i) The board of directors may designate from among its members an executive

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committee and one or more other committees each of which, to the extent authorized by the board

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of directors, shall have and may exercise all the authority of the board of directors, but no

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committee shall have the authority of the board of directors in reference to the disposition of all

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or substantially all the property and assets of the authority, or amending the bylaws of the

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authority.

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      (i)(j) Any action required by this chapter to be taken at a meeting of the board of

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directors, or any action which may be taken at a meeting of the board of directors, or committee

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of it, may be taken without a meeting if a consent in writing, setting forth the action to be taken,

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shall be signed before or after that action by all of the directors, or all of the members of the

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committee.

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      (j)(k) The board shall conduct a training course for newly appointed and qualified

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members and new designees of ex-officio members within six (6) months of their qualification or

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designation. The course shall be developed by the chair of the board, approved by the board, and

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conducted by the chair of the board. The board may approve the use of any board or staff

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members or other individuals to assist with training. The training course shall include instruction

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in the subject area of this chapter and chapters 46 of title 42, 14 of title 36, and 2 of title 38; and

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the board's rules and regulations. The director of the department of administration shall, within

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ninety (90) days of the effective date of this act, disseminate training materials relating to the

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provisions of chapters 46 of title 42, 14 of title 36, and 2 of title 38.

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     SECTION 3. Title 16 of the General Laws entitled "EDUCATION" is hereby amended

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by adding thereto the following chapter:

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     CHAPTER 97

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THE RHODE ISLAND BOARD OF EDUCATION ACT

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     Whereas, the twenty-first century has changed the challenges of education in the State of

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Rhode Island, it is incumbent upon this legislature to modernize the manner in which education

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shall be governed for future generations;

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      Whereas, the skills gap in Rhode Island continues to deter economic opportunity for

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many residents, it is incumbent upon this legislature to ensure that higher education institutions in

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the State of Rhode Island coordinate their efforts with elementary and secondary programs and

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increase their efforts towards eliminating the skills gap to ensure the State is competitive and the

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workforce is a marketable asset;

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     Whereas, the separate higher education system in the State of Rhode Island has not

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capitalized on opportunities and resources that have been made available due in part to a lack of

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coordination and efficiencies with elementary and secondary education, establishing a seamless

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singular board of education will promote coordination and increase efficiencies throughout the

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entirety of the education system within the State of Rhode Island; and

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     Whereas, in an effort to ensure a world class education for all students, a single Board of

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Education will serve to ensure that all students may achieve educational excellence; now

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therefore be it

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     Resolved, that the Rhode Island Board of Education Act is hereby established.

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     16-97-1. Rhode Island board of education established. – (a) Effective January 1, 2013,

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there is created a board of education which shall be and is constituted a public corporation,

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empowered to sue and be sued in its own name, to have a corporate seal, and to be vested with all

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the powers and duties currently vested in the board of governors for higher education established

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in chapter 16-59 and the board of regents for elementary and secondary education established in

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chapter 16-60.

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     (b) Upon its organization, the board of education shall be vested with the legal title (in

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trust for the state) to all property, real and personal, now owned by and/or under the control or in

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the custody of the board of governors for higher education and the board of regents for

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elementary and secondary education, for the use of the board of education. The board of

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education is hereby-designated successor to all powers, rights, duties, and privileges pertaining to

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the board of regents for elementary and secondary education and the board of governors for

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higher education.

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     (c) The board of education shall consist of eleven (11) public members appointed by the

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governor with the advice and consent of the senate. Four (4) of the members initially appointed

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pursuant to this section shall serve terms of three (3) years; four (4) members initially appointed

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pursuant to this section shall serve terms of two (2) years; and, three (3) members initially

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appointed pursuant to this section shall serve terms of one year. Thereafter, all members

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appointed pursuant to this section shall serve terms of three (3) years. No board member shall be

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appointed to serve more than two (2) three (3) year terms.

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     (d) The governor shall select from the appointed members a chairperson and vice

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chairperson. A quorum shall consist of six (6) members of the board. A majority vote of those

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present shall be required for action.

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     (e) The statutory responsibilities of the department of elementary and secondary

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

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higher education shall remain unchanged. No later than July 1, 2013, the board of education shall

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submit to the governor and the general assembly its final plan for the permanent administrative

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structure for higher education. As a requisite element of the administrative structure for higher

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education, the board of education shall establish a plan for distributing the assets, responsibilities,

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powers, authorities, and duties of the office of higher education to the three (3) higher education

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institutions and appropriate state agencies. Said distribution shall be done in a manner designed to

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maximize efficiency, provide greater articulation of the respective responsibilities of elementary

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and secondary and higher education, and ensure that students are prepared to succeed in school,

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college, careers, and life. The permanent governance structure for higher education shall, at a

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minimum: (1) Provide clear guidance on statutory, legal, financial and contractual obligations; (2)

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Establish a policy framework that furthers the goals of this chapter; and (3) Establish appropriate

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administrative structures, support, policies and procedures. Effective July 1, 2014, the office of

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higher education shall be abolished.

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     16-97-2. Executive agents of the state board of education. – (a) The state board of

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education shall appoint a Commissioner of Elementary and Secondary Education who shall be the

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board’s executive agent in matters pertaining to elementary and secondary education and who

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shall have the duties established in R.I.G.L. 16-60-6 . The state board of education shall also

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appoint a Commissioner of Higher Education who shall be the board’s executive agent in matters

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pertaining to higher education and who shall have the duties established in R.I.G.L. 16-59-6. The

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Commissioners shall be employees of the board in the unclassified service and shall not be

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members of the board and shall serve at the pleasure of the board.

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     16-97-3. Executive committee of education. – (a) There is established an executive

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committee of education that shall be composed of the president of the University of Rhode Island,

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the president of Rhode Island College, the president of Community College of Rhode Island, the

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

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The commissioner of higher education shall serve as the chairperson of the committee.

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     (b) The committee shall meet on a regular basis, provided, that they shall meet not less

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than twelve (12) times per year, and the purpose of the committee shall include, but not be limited

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to, developing coherent plans for the elimination of unnecessary duplication in public education

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and addressing the future needs of public education within the state in the most efficient and

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economical manner possible. All recommendations and information gathered at the meetings of

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the committee shall be forwarded to the board of education by the chairperson of the executive

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committee for final action of the board of education.

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     (c) Prior to the presentation of any proposal to the board of governors, the committee

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shall fully examine its impact on public education, including, but not limited to, its impact on

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educational budgetary requirements, quality of education and elimination of unnecessary

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duplication. The chairperson of the committee may invite additional participation by faculty and

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other employees when he or she deems it necessary.

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     16-97-4. Change of former names. – Effective January 1, 2013, the term “Rhode Island

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Board of Education” shall be used in lieu of any then existing law reference made to the board of

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regents for elementary and secondary education and/or the board of governors for higher

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education.

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     16-97-5. Abolishment of boards. – The board of governors for higher education

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established in chapter 16-59 and the board of regents for elementary and secondary education

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established in chapter 16-60 shall cease to exist as of January 1, 2013.

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     16-97-6. Reporting requirements. – The board shall submit periodic reports to the

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speaker of the house, senate president, chairs of the house and senate finance committees and

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their respective fiscal advisors, the chair of the house health, education and welfare committee,

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and chair of the senate education committee on its progress towards implementation of this

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chapter. The first report shall be submitted no later than April 1, 2013 and quarterly thereafter

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until January 1, 2014. It shall submit a report annually thereafter through 2018.

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     SECTION 4. Section 42-35-18 of the General Laws in Chapter 42-35 entitled

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"Administrative Procedures" is hereby amended to read as follows:

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     42-35-18. Effective date of chapter -- Scope of application and exemptions. -- (a) This

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chapter shall take effect upon January 1, 1964, and thereupon all acts and parts of acts

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inconsistent herewith shall stand repealed; provided, however, that except as to proceedings

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pending on June 30, 1963, this chapter shall apply to all agencies and agency proceedings not

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expressly exempted.

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      (b) None of the provisions of this chapter shall apply to the following sections and

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chapters:

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      (1) Section 16-32-10 (University of Rhode Island);

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      (2) Chapter 41 of title 16 (New England Higher Education Compact);

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      (3) Section 16-33-6 (Rhode Island College);

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      (4) Chapter 16 of title 23 (Health Facilities Construction Act);

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      (5) Chapter 8 of title 20 (Atlantic States Marine Fisheries Compact);

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      (6) Chapter 38 of title 28 (Dr. John E. Donley Rehabilitation Center);

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      (7) Chapter 7 of title 17 (State Board of Elections);

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      (8) Chapter 16 of title 8 (Judicial Tenure and Discipline);

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      (9) Chapter 61 of title 42 (State Lottery);

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      (10) Chapter 59 of title 16 (Board of Governors for Higher Education);

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      (11) Chapter 60 of title 16 (Board of Regents for Elementary and Secondary Education);

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      (10) Chapter 24.4 of title 45 (Special Development Districts);

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      (11) Chapter 12 of title 35 (The University of Rhode Island Research Corporation).

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      (c) The provisions of sections 42-35-9, 42-35-10, 42-35-11, 42-35-12 and 42-35-13 shall

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not apply to:

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      (1) Any and all acts, decisions, findings, or determinations by the board of review of the

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department of labor and training or the director of the department of labor and training or his, her,

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its or their duly authorized agents and to any and all procedures or hearings before and by the

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director or board of review of the department of labor and training or his or her agents under the

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provisions of chapters 39 -- 44 of title 28.

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      (2) Section 28-5-17 (Conciliation of charges of unlawful practices).

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      (3) Chapter 8 of title 13 (Parole).

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      (4) Any and all acts, decisions, findings or determinations by the administrator of the

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division of motor vehicles or his or her duly authorized agent and to any and all procedures or

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hearings before and by said administrator or his or her said agent under the provisions of chapters

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10, 11, 31 to 33, inclusive, of title 31.

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      (5) Procedures of the board of examiners of hoisting engineers under chapter 26 of title

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28.

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      (6) Any and all acts, decisions, findings, or determinations made under authority from

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the provisions of chapters 29 -- 38 of title 28, concerning workers' compensation administration,

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procedure and benefits.

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     SECTION 5. Title 35 of the General Laws entitled “PUBLIC FINANCE” is hereby

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amended by adding thereto the following chapter:

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     CHAPTER 35-1.1

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     OFFICE OF MANAGEMENT AND BUDGET

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     35-1.1-1. Statement of intent. -- The purpose of this chapter is to establish a

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comprehensive public finance and management system for the State of Rhode Island that

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manages a data-driven budget process, monitors state departments’ and agencies’ performance,

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maximizes the application for and use of federal grants and ensures accountability and

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transparency regarding the use of public funds.

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     35-1.1-2. Establishment of the office of management and budget. -- There is hereby

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established within the department of administration an office of management and budget. This

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office shall serve as the principal agency of the executive branch of state government for

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managing budgetary functions, performance management, and federal grants management. In this

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capacity, the office shall:

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     (1) Establish an in-depth form of data analysis within and between departments and

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agencies, creating a more informed process for resource allocation to best meet the needs of

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Rhode Island citizens;

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     (2) Identify federal grant funding opportunities to support the Governor’s and General

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Assembly’s major policy initiatives and provide technical assistance with the application process

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and post-award grants management;

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     (3) Analyze federal budgetary issues and report on potential impacts to the state;

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     (4) Coordinate the budget functions of the state with performance management

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objectives;,

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     (5) Maximize efficiencies in departments, agencies, advisory councils and

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instrumentalities of the State by improving processes and prioritizing programs;

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     (6) Upon the written request of the governor, the director of the department of

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administration, or the director of the office of management and budget, the office shall conduct

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audits, provide management advisory and consulting services, or conduct investigations relative

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to the financial affairs or the efficiency of management, or both, of any state department or

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agency. The office may from time to time make such investigations and additional reports to the

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governor, the director of the department of administration or the director of the office of

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management and budget shall deem necessary or advisable.

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     35-1.1-3. Director of management and budget – Appointment and responsibilities. –

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(a) Within the department of administration there shall be a director of management and budget,

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who shall be appointed by the director of administration with the approval of the governor. The

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director shall be responsible to the governor and director of administration for supervising the

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office of management and budget and for managing and providing strategic leadership and

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direction to the budget officer, the performance management office, and the federal grants

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management office.

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     (b) The director of management and budget shall be responsible to:

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     (1) Oversee, coordinate and manage the functions of the budget officer as set forth by

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section 35-3, program performance management as set forth by section 35-3-24.1, approval of

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agreements with federal agencies defined by section 35-3-25 and budgeting, appropriation and

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receipt of federal monies as set forth by chapter 42-41;

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     (2)Manage federal fiscal proposals and guidelines, and serve as the State Clearinghouse

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for the application of federal grants; and,

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     (3) Maximize the indirect cost recoveries by state agencies set forth by section 35-4-23.1.

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     35-1.1-4. Offices and functions assigned to the office of management and budget –

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Powers and duties. – (a) The offices assigned to the office of management and budget include

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the budget office, the performance management office and the federal grants management office.

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     (b) The offices assigned to the office of management and budget 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 director acting on behalf of

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the governor or in accordance with the powers and authorities conferred upon the director by this

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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 director;

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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 director, 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; and,

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     (c) 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 budget officer from fulfilling any statutory requirement

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or complying with any valid rule or regulation.

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     35-1.1-5. Federal grants management. -- (a) The office of management and budget

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shall be responsible for managing federal grant applications, providing administrative assistance

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to agencies regarding reporting requirements, providing technical assistance and approving

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agreements with federal agencies pursuant to section 35-1-1. The director shall:

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     (1) Establish state goals and objectives for maximizing the utilization of federal aid

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programs;

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     (2) Ensure that the state establishes and maintains statewide federally-mandated grants

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management processes and procedures as mandated by the federal Office of Management and

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Budget;

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     (3) Promulgate procedures and guidelines for all state departments, agencies, advisory

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councils, instrumentalities of the state and public higher education institutions covering

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applications for federal grants;

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     (4) Require, upon request, any state department, agency, advisory council,

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instrumentality of the state or public higher education institution receiving a grant of money from

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the federal government to submit a report to the director of expenditures and program measures

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for the fiscal period in question;

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     (5) Ensure state departments and agencies adhere to the requirements of section 42-41-

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5 regarding Legislative appropriation authority and delegation thereof;

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     (6) Assist the state controller in managing and overseeing the disbursements of federal

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funds in accordance with section 35-6-42;

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     (7) Assist the state controller in the preparation of the statewide cost allocation plan and

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serve as the monitoring agency to ensure that state departments and agencies are working within

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the guidelines contained in the plan; and,

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     (8) Provide technical assistance to agencies to ensure resolution and closure of all single

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state audit findings and recommendations made by the Auditor General related to Federal

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funding. 

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     (b) The office of management and budget shall serve as the State Clearinghouse for

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purposes of coordinating federal grants, aid and assistance applied for and/or received by any

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state department, agency, advisory council or instrumentality of the state. Any state department,

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agency, advisory council, or instrumentality of the state applying for federal funds, aids, loans, or

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grants shall file a summary notification of the intended application with the director.

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     (1) When as a condition to receiving federal funds, the state is required to match the

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federal funds, a statement shall be filed with the notice of intent or summary of the application

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stating:

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     (i) The amount and source of state funds needed for matching purposes;

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     (ii) The length of time the matching funds shall be required;

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     (iii) The growth of the program;

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     (iv) How the program will be evaluated;

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     (v) What action will be necessary should the federal funds be canceled, curtailed, or

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restricted; and,

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     (vi) Any other financial and program management data required by the office or by law.

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     (2) Except as otherwise required, any application submitted by an executive agency for

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federal funds, aids, loans, or grants which will require state matching or replacement funds at the

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time of application or at any time in the future, must be approved by the director or their

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designated agents prior to its filing with the appropriate federal agency. Any application

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submitted by an executive agency for federal funds, aids, loans, or grants which will require state

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matching or replacement funds at the time of application or at any time in the future, when funds

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have not been appropriated for that express purpose, must be approved by the General Assembly

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in accordance with section 42-41-5. When the general assembly is not in session, the application

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shall be reported to and reviewed by the Director pursuant to rules and regulations promulgated

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by the Director.

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     (3) When any federal funds, aids, loans, or grants are received by any state department,

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agency, advisory council or instrumentality of the state, a report of the amount of funds received

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shall be filed with the office; and this report shall specify the amount of funds which would

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reimburse an agency for indirect costs, as provided for under federal OMB Circular A-87.

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     (4) The director may refuse to issue approval for the disbursement of any state or federal

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funds from the State Treasury as the result of any application which is not approved as provided

11-10

by this section, or in regard to which the statement or reports required by this section were not

11-11

filed.

11-12

     (5) The director shall be responsible for the orderly administration of this section and for

11-13

issuing the appropriate guidelines and regulations from each source of funds used.

11-14

     35-1.1-6. Office of Management and Budget expenses. -- (a) There is created a

11-15

restricted receipt account for the office of management and budget to be known as OMB

11-16

administrative expense account. Payments from the account shall be limited to expenses for

11-17

administrative oversight and management of federal and state funds received by the state

11-18

agencies..

11-19

     (b) All amounts deposited in the office of management and budget accounts shall be

11-20

exempt from the indirect cost recovery provisions of section 35-4-27.

11-21

     (c) The office of management and budget is authorized to receive indirect costs on federal

11-22

funds to cover oversight expenses

11-23

     35-1.1-7. Appointment of employees. – The director of administration, subject to the

11-24

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

11-25

of management and budget. The director of administration may delegate this function to such

11-26

subordinate officers and employees of the office as may to him or her seem feasible or desirable.

11-27

     35-1.1-8. Appropriations and disbursements. – The general assembly shall annually

11-28

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

11-29

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

11-30

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

11-31

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

11-32

office of management and budget, or his or her designee.

11-33

     35-1.1-9. Cooperation of other state executive branch agencies. – (a) The departments

11-34

and other agencies of the state of the executive branch that have not been assigned to the

12-1

executive office of management and budget under this chapter shall assist and cooperate with the

12-2

executive office as may be required by the governor and/or requested by the director of

12-3

management and budget, this assistance may include, but not be limited to, utilizing staff

12-4

resources from other departments or agencies for special projects within a defined period of time

12-5

to improve processes within agencies and/or lead to cost savings.

12-6

     (b) Within thirty (30) days following the date of the issuance of a final audit report

12-7

completed pursuant to subdivision 35-1.1-2(6) , the head of the department, agency or private

12-8

entity audited shall respond in writing to each recommendation made in the final audit report.

12-9

This response shall address the department's, agency's or private entity's plan of implementation

12-10

for each specific audit recommendation and, if applicable, the reasons for disagreement with any

12-11

recommendation proposed in the audit report. Within one year following the date on which the

12-12

audit report was issued, the office may perform a follow-up audit for the purpose of determining

12-13

whether the department, agency or private entity has implemented, in an efficient and effective

12-14

manner, its plan of action for the recommendations proposed in the audit report.

12-15

     35-1.1-10. Organizational reviews and special initiatives. – (a) The director of the

12-16

office of management and budget is hereby directed to conduct research and analysis to study the

12-17

programs of the department of transportation and other quasi-transportation related agencies not

12-18

limited to bridge, vehicle and winter maintenance efficiencies and effectiveness. The director of

12-19

the office of management and budget is authorized to consult with the appropriate federal

12-20

agencies and departments that provide funds to, or delegate authority to, the state department of

12-21

transportation and other quasi-transportation related agencies.

12-22

     (b) This plan shall address the goal of improving efficiency of transportation programs;

12-23

identifying similar programs that are being performed.

12-24

     (c) The office of management and budget is directed to report findings,

12-25

recommendations, and alternative designs to the governor and general assembly no later than

12-26

November 1, 2012 with copies to the governor, speaker of the house, senate president, chairs of

12-27

the house and senate finance committees and their respective fiscal advisors.

12-28

     (d) The report shall include a strategic plan that outlines the mission, goals, the estimated

12-29

cost and timelines to implement said recommendations, and the federal and state mandates

12-30

associated with the current programs. The report shall provide a clear definition of roles and

12-31

responsibilities, including those responsible for implementing the proposed recommendations.

12-32

The analysis shall develop outcome measures and an appropriate timeline to measure

12-33

implementation progress. It shall also include:

13-34

     (1) An examination of the various organizational structures in other states, evaluating

13-35

their strengths and weaknesses, and how they may or may not be applicable in Rhode Island. This

13-36

should include an evaluation of the best practices regarding efficiencies.

13-37

     (2) An analysis of what programs and responsibilities could be more efficiently

13-38

implemented and managed. This should include, but not be limited to, strategies to reorganize and

13-39

or centralize transportation programs.

13-40

     (3) An evaluation of the federal, state and other revenues that support these programs,

13-41

and the impacts on revenues and expenses associated with the alternatives and recommendations.

13-42

     (e) The department of transportation and other quasi-transportation related agencies shall

13-43

furnish such advice and information, documentary or otherwise, to the director of the office of

13-44

management and budget as is deemed necessary or desirable to facilitate the purposes of the

13-45

study.

13-46

     35-1.1-11. Rules and regulations. – The office of management and budget shall be

13-47

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

13-48

director shall make and promulgate such rules and regulations, and establish fee schedules not

13-49

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

13-50

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

13-51

     35-1.1-12. Severability. – If any provision of this chapter or the application thereof to

13-52

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

13-53

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

13-54

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

13-55

     SECTION 6. Section 35-1-1 of the General Laws in Chapter 35-1 entitled “Fiscal

13-56

Functions of Department of Administration” is hereby amended to read as follows:

13-57

     35-1-1. Approval of agreements with federal agencies. – No department or agency of

13-58

the state shall enter into an agreement with a federal agency involving state funds without the

13-59

approval of the director of administration or the director's director of the office of management

13-60

and budget or his or her duly authorized agents.

13-61

     SECTION 7. Sections 35-3-1 and 35-3-24.1 of the General Laws in Chapter 35-3 entitled

13-62

“State Budget” are hereby amended to read as follows:

13-63

     35-3-1. Budget officer – General powers and duties. – (a) Within the department of

13-64

administration office of management and budget there shall be a budget officer who shall be

13-65

appointed by the director of administration with the approval of the governor. The budget officer

13-66

shall be required to:

13-67

     (1) Exercise budgetary control over all state departments and agencies and perform

13-68

management analyses;

14-1

     (2) Operate an appropriation allotment system;

14-2

     (3) Prepare the annual budget of the receipts and expenditures of the state;

14-3

     (4) Develop long term activity and financial programs, particularly capital improvement

14-4

programs;

14-5

     (5) Approve or disapprove all requests for new personnel and to investigate periodically

14-6

the need of all existing positions in the state service and report thereon to the director of

14-7

administration; and

14-8

     (6) Prepare a five (5) year financial projection of anticipated general revenue receipts and

14-9

expenditures, including detail of principal revenue sources and expenditures by major program

14-10

areas, which projection shall be included in the budget submitted to the general assembly

14-11

pursuant to § 35-3-7.

14-12

     (b) The budget officer may approve or disapprove requisitions for equipment, materials,

14-13

and supplies.

14-14

     (c) The budget officer's duties and powers relating to budgetary controls and personnel

14-15

requests of the legislative and judicial departments shall be purely ministerial, concerned only

14-16

with the availability of the funds, and in no event shall the budget officer interpose his or her

14-17

judgment regarding the wisdom or expediency of items of expenditure.

14-18

     35-3-24.1 Program performance measurement. – (a) Beginning with the fiscal year

14-19

ending June 30, 1997, the governor shall submit, as part of each budget submitted to the general

14-20

assembly pursuant to § 35-3-7, performance objectives for each program in the budget for the

14-21

ensuing fiscal year, estimated performance data for the fiscal year in which the budget is

14-22

submitted, and actual performance data for the preceding two (2) completed fiscal years.

14-23

Performance data shall include efforts at achieving equal opportunity hiring goals as defined in

14-24

the department's annual affirmative action plan. The governor shall, in addition, recommend

14-25

appropriate standards against which to measure program performance. Performance in prior years

14-26

may be used as a standard where appropriate. These performance standards shall be stated in

14-27

terms of results obtained.

14-28

     (b) The governor may submit, in lieu of any part of the information required to be

14-29

submitted pursuant to subsection (a), an explanation of why the information cannot, as a practical

14-30

matter be submitted.

14-31

     (c)(1) The office of management and budget shall be responsible for managing and

14-32

collecting program performance measures on behalf of the governor. The office is authorized to

14-33

conduct performance reviews and audits of agencies to determine progress towards achieving

14-34

performance objectives for programs.

15-1

     (2) In order to collect performance measures from agencies, review performance and

15-2

provide recommendations the office of budget and management is authorized to coordinate with

15-3

the bureau of audits regarding the findings and recommendations that result from audits

15-4

conducted by the bureau.

15-5

     SECTION 8. Section 36-4-2 of the General Laws in Chapter 36-4 entitled “Merit

15-6

System” is hereby amended to read as follows:

15-7

     36-4-2. Positions in unclassified service. – The classified service shall comprise all

15-8

positions in the state service now existing or hereinafter established, except the following specific

15-9

positions which with other positions heretofore or hereinafter specifically exempted by legislative

15-10

act shall constitute the unclassified service:

15-11

     (1) Officers and legislators elected by popular vote and persons appointed to fill

15-12

vacancies in elective offices.

15-13

     (2) Employees of both houses of the general assembly.

15-14

     (3) Officers, secretaries, and employees of the office of the governor, office of the

15-15

lieutenant governor, department of state, department of the attorney general, and the treasury

15-16

department.

15-17

     (4) Members of boards and commissions appointed by the governor, members of the state

15-18

board of elections and the appointees of the board, members of the commission for human rights

15-19

and the employees of the commission, and directors of departments.

15-20

     (5) The following specific offices:

15-21

     (i) In the department of administration: director, chief information officer, director of

15-22

office of management and budget, and director of performance management;

15-23

     (ii) In the department of business regulation: director;

15-24

     (iii) In the department of elementary and secondary education: commissioner of

15-25

elementary and secondary education;

15-26

     (iv) In the department of higher education: commissioner of higher education;

15-27

     (v) In the department of health: director;

15-28

     (vi) In the department of labor and training: director, administrative assistant,

15-29

administrator of the labor board and legal counsel to the labor board;

15-30

     (vii) In the department of environmental management: director;

15-31

     (viii) In the department of transportation: director;

15-32

     (ix) In the department of human services: director and director of veterans' affairs;

15-33

     (x) In the state properties committee: secretary;

16-34

     (xi) In the workers' compensation court: judges, administrator, deputy administrator,

16-35

clerk, assistant clerk, clerk secretary;

16-36

     (xii) In the division of elderly affairs: director;

16-37

     (xiii) In the department of behavioral healthcare, developmental disabilities and hospitals:

16-38

director;

16-39

     (xiv) In the department of corrections: director, assistant director (institutions/operations),

16-40

assistant director (rehabilitative services), assistant director (administration), and wardens;

16-41

     (xv) In the department of children, youth and families: director, one assistant director,

16-42

one associate director, and one executive director;

16-43

     (xvi) In the public utilities commission: public utilities administrator;

16-44

     (xvii) In the water resources board: general manager;

16-45

     (xviii) In the human resources investment council: executive director.

16-46

     (xix) In the office of health and human services: secretary of health and human services.

16-47

     (6) Chief of the hoisting engineers, licensing division, and his or her employees;

16-48

executive director of the veterans memorial building and his or her clerical employees.

16-49

     (7) One confidential stenographic secretary for each director of a department and each

16-50

board and commission appointed by the governor.

16-51

     (8) Special counsel, special prosecutors, regular and special assistants appointed by the

16-52

attorney general, the public defender and employees of his or her office, and members of the

16-53

Rhode Island bar occupying a position in the state service as legal counsel to any appointing

16-54

authority.

16-55

     (9) The academic and/or commercial teaching staffs of all state institution schools, with

16-56

the exception of those institutions under the jurisdiction of the board of regents for elementary

16-57

and secondary education and the board of governors for higher education.

16-58

     (10) Members of the military or naval forces, when entering or while engaged in the

16-59

military or naval service.

16-60

     (11) Judges, referees, receivers, clerks, assistant clerks, and clerical assistants of the

16-61

supreme, superior, family, and district courts, the traffic tribunal, security officers of the traffic

16-62

tribunal, jurors and any persons appointed by any court.

16-63

     (12) Election officials and employees.

16-64

     (13) Executive high sheriff, chief deputy sheriff, sheriffs, deputy sheriffs, and other

16-65

employees of the sheriffs division within the department of public safety.

16-66

     (14) Patient or inmate help in state charitable, penal, and correctional institutions and

16-67

religious instructors of these institutions and student nurses in training, residents in psychiatry in

16-68

training, and clinical clerks in temporary training at the institute of mental health within the state

17-1

of Rhode Island medical center.

17-2

     (15)(i) Persons employed to make or conduct a temporary and special inquiry,

17-3

investigation, project or examination on behalf of the legislature or a committee therefor, or on

17-4

behalf of any other agency of the state if the inclusion of these persons in the unclassified service

17-5

is approved by the personnel administrator. The personnel administrator shall notify the house

17-6

fiscal advisor and the senate fiscal advisor whenever he or she approves the inclusion of a person

17-7

in the unclassified service.

17-8

     (ii) The duration of the appointment of a person, other than the persons enumerated in

17-9

this section, shall not exceed ninety (90) days or until presented to the department of

17-10

administration. The department of administration may extend the appointment another ninety (90)

17-11

days. In no event shall the appointment extend beyond one hundred eighty (180) days.

17-12

     (16) Members of the division of state police within the department of public safety.

17-13

     (17) Executive secretary of the Blackstone Valley district commission.

17-14

     (18) Artist and curator of state owned art objects.

17-15

     (19) Mental health advocate.

17-16

     (20) Child advocate.

17-17

     (21) The position of aquaculture coordinator and marine infrastructure specialist within

17-18

the coastal resources management council.

17-19

     (22) Employees of the office of the health insurance commissioner.

17-20

     (23) In the department of revenue: the director, secretary, attorney.

17-21

     (24) In the department of public safety: the director.

17-22

     SECTION 9. Section 42-11-2.4 of the General Laws in Chapter 42-11 entitled

17-23

"Department of Administration" is hereby amended to read as follows:

17-24

     42-11-2.4. State Fleet Replacement Revolving Loan Fund. -- (a) There is hereby

17-25

created as a separate fund within the treasury to be known as the state fleet replacement revolving

17-26

loan fund which shall be administered by the general treasurer in accordance with the same laws

17-27

and fiscal procedures as the general funds of the state. This fund, hereafter referred to as the

17-28

"revolving loan fund", shall consist of such sums as the state may from time to time appropriate,

17-29

as well as money received from the disposal of used vehicles, loan, interest and service charge

17-30

payments from benefiting state agencies, as well as interest earnings, money received from the

17-31

federal government, gifts, bequests, donations, or otherwise from any public or private source.

17-32

      (b) This fund shall be used for the purpose of acquiring motor vehicles, both new and

17-33

used, and vehicle-related equipment and attachments for state departments and agencies.

18-34

      (c) The proceeds from the repayment of any loans made for the purposes authorized

18-35

under this chapter shall be deposited in and returned to the revolving loan fund in order to

18-36

constitute a continuing revolving fund for the purposes listed above.

18-37

      (d) The office of state fleet operations of the Rhode Island department of administration

18-38

shall adopt rules and regulations consistent with the purposes of this chapter and chapter 35 of

18-39

title 42, in order to provide for the orderly and equitable disbursement and repayment of funds

18-40

from the revolving loan fund.

18-41

     (e) Provided; however, a total of four million two hundred thousand dollars ($4,200,000)

18-42

shall be made available for the required twenty percent (20%) match for the Rhode Island Public

18-43

Transit Authority to obtain federal funds to purchase buses through FY 2017.

18-44

     SECTION 10. Chapter 42-11 of the general laws entitled, “Department of

18-45

Administration” is hereby amended by adding thereto the following section:

18-46

     42-11-2.6. Office of Digital Excellence established.-- (a) Within the department there

18-47

shall be established the Office of Digital Excellence. The purposes of the office shall be to move

18-48

RI state government into the 21st century through the incorporation of innovation and modern

18-49

digital capabilities throughout state government and to leverage technology to expand and

18-50

improve the quality of services provided to RI citizens, to promote greater access to government

18-51

and the internet throughout cities and towns, and to position Rhode Island as a national leader in

18-52

e-government.

18-53

     (b) Within the office there shall be a chief digital officer who shall be appointed by the

18-54

director of administration with the approval of the governor and who shall be in the unclassified

18-55

service. The chief digital officer shall be required to:

18-56

     (1) Manage the implementation of all new and mission critical technology infrastructure

18-57

projects and upgrades for state agencies. The division of information technology established

18-58

pursuant to executive order 04-06 shall continue to manage and support all day-to-day operations

18-59

of the state’s technology infrastructure, telecommunications, and associated applications;

18-60

     (2) Increase the number of government services that can be provided online in order to

18-61

allow residents and businesses to complete transactions in a more efficient and transparent

18-62

manner;

18-63

     (3) Improve the state’s websites to provide timely information to online users and as

18-64

many government services as possible online; and

18-65

     (4) Establish, improve and enhance the state’s use of social media and mobile

18-66

technological applications.

18-67

     (c) The office shall coordinate its efforts with the division of information technology in

18-68

order to plan, allocate and implement projects supported by the information technology

19-1

investment fund established pursuant to 42-11-2.5.

19-2

     (d) All intellectual property created as a result of work undertaken by employees of the

19-3

office shall remain the property of the state of Rhode Island and Providence Plantations. Any

19-4

patents applied for shall be in the name of the state.

19-5

     (e) The director of administration may promulgate rules and regulations recommended by

19-6

the chief digital officer in order to effectuate the purposes and requirements of this act.

19-7

     (f) The chief digital officer shall report no later than January 31, 2013 and every January

19-8

31 thereafter to the governor, the speaker of the house of representatives and the senate president

19-9

regarding the implementation status of all technology infrastructure projects, website

19-10

improvements, number of e-government transactions and revenues generated, projects supported

19-11

by the information technology investment fund and all other activities undertaken by the office.

19-12

The annual report shall be posted on the office’s website.

19-13

     SECTION 11. Chapter 42-12 of the General Laws entitled “Department of Human

19-14

Services” is hereby amended by adding thereto the following section:

19-15

     42-12-1.5. Transfer of functions from the office of energy resources. – (a) There is

19-16

hereby transferred from the office of energy resources to the department of human services the

19-17

administration, management, all functions and resources associated with :

19-18

     (1) The federal low-income home energy assistance program (LIHEAP), which provides

19-19

heating assistance to eligible low-income persons and any state funded or privately funded

19-20

heating assistance program of a similar nature assigned to it for administration;

19-21

     (2) The weatherization assistance program, which offers home weatherization grants and

19-22

heating system upgrades to LIHEAP eligible households; and,

19-23

     (3) The emergency fuel program, which provides oil deliveries to families experiencing a

19-24

heating emergency.

19-25

     (b) The department is authorized to request advisory assistance from the office of energy

19-26

resources in order to maintain continuity of assistance provided to LIHEAP eligible households

19-27

pursuant to section 39-2-1(d).

19-28

     SECTION 12. Sections 23-82-3, 23-82-4 and 23-82-6 of the General Laws in Chapter 23-

19-29

82 entitled "Implementation of the Regional Greenhouse Gas Initiative Act" are hereby amended

19-30

to read as follows:

19-31

     23-82-3. Definitions. -- As used in this chapter:

19-32

      (1) "Allowance" means an authorization to emit a fixed amount of carbon dioxide;

19-33

      (2) (4) "Department" means department of environmental management;

20-34

      (3) (6) "Regional greenhouse gas initiative" or "RGGI" means the memorandum of

20-35

understanding (MOU) dated December 20, 2005, as may be amended, and corresponding model

20-36

rule, as may be amended, that establishes an electric power sector carbon emissions cap and trade

20-37

program.

20-38

      (4) (5) "Office" means the office of energy resources; and

20-39

      (5) (3) "Council" means the energy efficiency and resources management council.

20-40

     (2) "Board" means the renewable energy coordinating board established pursuant to

20-41

chapter 42-140.3.

20-42

     23-82-4. Regional greenhouse gas initiative implementation. -- (a) The department

20-43

shall, in consultation with the public utilities commission, the office, and the council, and board,

20-44

through rules and regulations, establish the state's rules for participation in RGGI.

20-45

      (b) The department's rules and regulations for participation in a carbon cap and trade

20-46

program shall be designed to meet the mutual understandings and commitments for participation

20-47

in RGGI, and permit the holders of carbon allowances to trade them in a regional market to be

20-48

established through the RGGI.

20-49

      (c) The department's rules and regulations shall ensure that the carbon allowances under

20-50

this program and the revenues associated with their sale are used exclusively for the purposes

20-51

contained in this legislation.

20-52

      (d)(c) The responsibilities created by implementing RGGI shall be in addition to all other

20-53

responsibilities imposed by any other general or special law or rule or regulation and shall not

20-54

diminish or reduce any power or authority of the department, including the authority to adopt

20-55

standards and regulations necessary for the state to join and fully participate in any multi-state

20-56

program, at any stage in the development and implementation of such a program, intended to

20-57

control emissions of carbon dioxide and/or other substances that are determined by the

20-58

department to be damaging and/or altering the climate.

20-59

     23-82-6. Use of auction or sale proceeds. -- (a) The proceeds from the auction or sale of

20-60

the allowances shall be used for the benefit of energy consumers through investment in the most

20-61

cost-effective available projects that can reduce long-term consumer energy demands and costs.

20-62

Such proceeds may be used only for the following purposes, in a proportion to be determined

20-63

annually by the office in consultation with the council and the department board:

20-64

      (1) Promotion of cost-effective energy efficiency and conservation in order to achieve

20-65

the purposes of section 39-1-27.7;

20-66

      (2) Promotion of cost-effective renewable non-carbon emitting energy technologies in

20-67

Rhode Island as defined in Rhode Island general law section 39-26-5 and to achieve the purposes

20-68

of chapter 39-26 entitled "Renewable Energy Standard";

21-1

      (3) Cost-effective direct rate relief for consumers;

21-2

      (4) Direct rate relief for low-income consumers;

21-3

      (5) Reasonable compensation to an entity selected to administer the auction or sale; and

21-4

      (6) Reasonable costs of the department and office in administering this program, which

21-5

shall not in any year exceed three hundred thousand dollars ($300,000) or five percent (5%) of

21-6

the proceeds from sale or auction of the allowances, whichever is less. Administrative funds not

21-7

expended in any fiscal year shall remain in the administrative account to be used as needed in

21-8

subsequent years. The office of energy resources shall have the ability to apply administrative

21-9

funds not used in a fiscal year to achieve the purpose of this section. The funds deposited into the

21-10

administrative funds account shall be exempt from the indirect cost recovery provisions of section

21-11

35-4-27.

21-12

      (b) Any interest earned on the funds so generated must be credited to the fund. Funds not

21-13

spent in any fiscal year shall remain in the fund to be used for future energy efficiency and carbon

21-14

reduction programs.

21-15

      (c) Annually, the office, in consultation with the department and the council and board,

21-16

shall prepare a draft proposal on how the proceeds from the allowances shall be allocated. The

21-17

draft proposal shall be designed to augment and coordinate with existing energy efficiency and

21-18

renewable energy low-income programs, and shall not propose use of auction proceeds for

21-19

projects already funded under other programs. The proposal for allocation of proceeds in

21-20

subsections 23-82-6(1), (2) and (3) shall be one that best achieves the purposes of the law,

21-21

namely, lowering carbon emissions and minimizing costs to consumers over the long term. The

21-22

office shall hold a public hearing and accept public comment on the draft proposal in accordance

21-23

with chapter 42-35 (the "Administrative Procedure Act"). Once the proposal is final, the

21-24

department office shall authorize the disbursement of funds in accordance with the final plan.

21-25

      (d) The office shall prepare, in consultation with the department and the council and

21-26

board, a report by January 1st April 15th of each year describing the implementation and operation

21-27

of RGGI, the revenues collected and the expenditures, including funds that were allocated to the

21-28

energy efficiency and renewable energy programs, and the individuals, businesses and vendors

21-29

that received funding, made under this section, the statewide energy efficiency and carbon

21-30

reduction programs, and any recommendations for changes to law relating to the state's energy

21-31

conservation or carbon reduction efforts. The report shall be made public and be posted

21-32

electronically on the website of the office of energy resources and shall also be submitted to the

21-33

general assembly.

22-34

     SECTION 13. Section 39-1-27.7 of the General Laws in Chapter 39-1 entitled "Public

22-35

Utilities Commission" is hereby amended to read as follows:

22-36

     39-1-27.7. System reliability and least-cost procurement. -- Least-cost procurement

22-37

shall comprise system reliability and energy efficiency and conservation procurement as provided

22-38

for in this section and supply procurement as provided for in section 39-1-27.8, as complementary

22-39

but distinct activities that have as common purpose meeting electrical and natural gas energy

22-40

needs in Rhode Island, in a manner that is optimally cost-effective, reliable, prudent and

22-41

environmentally responsible.

22-42

      (a) The commission shall establish not later than June 1, 2008, standards for system

22-43

reliability and energy efficiency and conservation procurement, which shall include standards and

22-44

guidelines for:

22-45

      (1) System reliability procurement, including but not limited to:

22-46

      (i) Procurement of energy supply from diverse sources, including, but not limited to,

22-47

renewable energy resources as defined in chapter 26 of this title;

22-48

      (ii) Distributed generation, including, but not limited to, renewable energy resources and

22-49

thermally leading combined heat and power systems, which is reliable and is cost-effective, with

22-50

measurable, net system benefits;

22-51

      (iii) Demand response, including, but not limited to, distributed generation, back-up

22-52

generation and on-demand usage reduction, which shall be designed to facilitate electric customer

22-53

participation in regional demand response programs, including those administered by the

22-54

independent service operator of New England ("ISO-NE") and/or are designed to provide local

22-55

system reliability benefits through load control or using on-site generating capability;

22-56

      (iv) To effectuate the purposes of this division, the commission may establish standards

22-57

and/or rates (A) for qualifying distributed generation, demand response, and renewable energy

22-58

resources; (B) for net-metering; (C) for back-up power and/or standby rates that reasonably

22-59

facilitate the development of distributed generation; and (D) for such other matters as the

22-60

commission may find necessary or appropriate.

22-61

      (2) Least-cost procurement, which shall include procurement of energy efficiency and

22-62

energy conservation measures that are prudent and reliable and when such measures are lower

22-63

cost than acquisition of additional supply, including supply for periods of high demand.

22-64

      (b) The standards and guidelines provided for by subsection (a) shall be subject to

22-65

periodic review and as appropriate amendment by the commission, which review will be

22-66

conducted not less frequently than every three (3) years after the adoption of the standards and

22-67

guidelines.

23-68

      (c) To implement the provisions of this section:

23-69

      (1) The commissioner of the office of energy resources and the energy efficiency and

23-70

resources management council, either or jointly or separately, shall provide the commission

23-71

findings and recommendations with regard to system reliability and energy efficiency and

23-72

conservation procurement on or before March 1, 2008, and triennially on or before March 1,

23-73

thereafter through March 1, 2017. The report shall be made public and be posted electronically on

23-74

the website to the office of energy resources.

23-75

      (2) The commission shall issue standards not later than June 1, 2008, with regard to

23-76

plans for system reliability and energy efficiency and conservation procurement, which standards

23-77

may be amended or revised by the commission as necessary and/or appropriate.

23-78

      (3) The energy efficiency and resources management council shall prepare by July 15,

23-79

2008, a reliability and efficiency procurement opportunity report which shall identify

23-80

opportunities to procure efficiency, distributed generation, demand response and renewables,

23-81

which report shall be submitted to the electrical distribution company, the commission, the office

23-82

of energy resources and the joint committee on energy.

23-83

      (4) Each electrical and natural gas distribution company shall submit to the commission

23-84

on or before September 1, 2008, and triennially on or before September 1, thereafter through

23-85

September 1, 2017, a plan for system reliability and energy efficiency and conservation

23-86

procurement. In developing the plan, the distribution company may seek the advice of the

23-87

commissioner and the council. The plan shall include measurable goals and target percentages for

23-88

each energy resource, pursuant to standards established by the commission, including efficiency,

23-89

distributed generation, demand response, combined heat and power, and renewables. The plan

23-90

shall be made public and be posted electronically on the website to the office of energy resources,

23-91

and shall also be submitted to the general assembly.

23-92

      (5) The commission shall issue an order approving all energy efficiency measures that

23-93

are cost effective and lower cost than acquisition of additional supply, with regard to the plan

23-94

from the electrical and natural gas distribution company, and reviewed and approved by the

23-95

energy efficiency and resources management council, and any related annual plans, and shall

23-96

approve a fully reconciling funding mechanism to fund investments in all efficiency measures

23-97

that are cost effective and lower cost than acquisition of additional supply, not greater than sixty

23-98

(60) days after it is filed with the commission.

23-99

      (6) Each electrical and natural gas distribution company shall provide a status report,

23-100

which shall be public, on the implementation of least cost procurement on or before December

23-101

15, 2008, and on or before February 1, 2009, to the commission, the division, the commissioner

23-102

of the office of energy resources and the energy efficiency and resources management council

24-1

which may provide the distribution company recommendations with regard to effective

24-2

implementation of least cost procurement. The report shall include the targets for each energy

24-3

resource included in the order approving the plan and the achieved percentage for energy

24-4

resource, including the achieved percentages for efficiency, distributed generation, demand

24-5

response, combined heat and power, and renewables as well as the current funding allocations for

24-6

each eligible energy resource and the businesses and vendors in Rhode Island participating in the

24-7

programs. The report shall be posted electronically on the website of the office of energy

24-8

resources.

24-9

      (d) If the commission shall determine that the implementation of system reliability and

24-10

energy efficiency and conservation procurement has caused or is likely to cause under or over-

24-11

recovery of overhead and fixed costs of the company implementing said procurement, the

24-12

commission may establish a mandatory rate adjustment clause for the company so affected in

24-13

order to provide for full recovery of reasonable and prudent overhead and fixed costs.

24-14

      (e) The commission shall conduct a contested case proceeding to establish a performance

24-15

based incentive plan which allows for additional compensation for each electric distribution

24-16

company and each company providing gas to end-users and/or retail customers based on the level

24-17

of its success in mitigating the cost and variability of electric and gas services through

24-18

procurement portfolios.

24-19

     SECTION 14. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of

24-20

Utilities and Carriers" is hereby amended to read as follows:

24-21

     39-2-1.2. Utility base rate -- Advertising, demand side management and renewables.

24-22

-- (a) In addition to costs prohibited in section 39-1-27.4(b), no public utility distributing or

24-23

providing heat, electricity, or water to or for the public shall include as part of its base rate any

24-24

expenses for advertising, either direct or indirect, which promotes the use of its product or

24-25

service, or is designed to promote the public image of the industry. No public utility may furnish

24-26

support of any kind, direct, or indirect, to any subsidiary, group, association, or individual for

24-27

advertising and include the expense as part of its base rate. Nothing contained in this section shall

24-28

be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising,

24-29

informational or educational in nature, which is designed to promote public safety conservation of

24-30

the public utility's product or service. The public utilities commission shall promulgate such rules

24-31

and regulations as are necessary to require public disclosure of all advertising expenses of any

24-32

kind, direct or indirect, and to otherwise effectuate the provisions of this section.

24-33

      (b) Effective as of January 1, 2008, and for a period of ten (10) years thereafter, each

24-34

electric distribution company shall include charges per kilowatt-hour delivered to fund demand

25-1

side management programs and 0.3 mills per kilowatt-hour delivered to fund renewable energy

25-2

programs. The electric distribution company shall establish and after July 1, 2007, maintain two

25-3

(2) separate accounts, one for demand side management programs, which shall be administered

25-4

and implemented by the distribution company, subject to the regulatory reviewing authority of the

25-5

commission, and one for renewable energy programs, which shall be administered by the

25-6

economic development corporation pursuant to section 42-64-13.2 and, shall be held and

25-7

disbursed by the distribution company as directed by the economic development corporation for

25-8

the purposes of developing, promoting and supporting renewable energy programs.

25-9

      During the ten (10) year period the commission may, in its discretion, after notice and

25-10

public hearing, increase the sums for demand side management and renewable resources;

25-11

thereafter, the commission shall, after notice and public hearing, determine the appropriate charge

25-12

for these programs. The office of energy resources and/or the administrator of the renewable

25-13

energy programs may seek to secure for the state an equitable and reasonable portion of

25-14

renewable energy credits or certificates created by private projects funded through those

25-15

programs. As used in this section, "renewable energy resources" shall mean: (1) power generation

25-16

technologies as defined in section 39-26-5, "eligible renewable energy resources", including off-

25-17

grid and on-grid generating technologies located in Rhode Island as a priority; (2) research and

25-18

development activities in Rhode Island pertaining to eligible renewable energy resources and to

25-19

other renewable energy technologies for electrical generation; or (3) projects and activities

25-20

directly related to implementing eligible renewable energy resources projects in Rhode Island.

25-21

Technologies for converting solar energy for space heating or generating domestic hot water may

25-22

also be funded through the renewable energy programs, so long as these technologies are installed

25-23

on housing projects that have been certified by the executive director of the Rhode Island housing

25-24

and mortgage finance corporation as serving low-income Rhode Island residents. Fuel cells may

25-25

be considered an energy efficiency technology to be included in demand sided management

25-26

programs. Special rates for low-income customers in effect as of August 7, 1996 shall be

25-27

continued, and the costs of all of these discounts shall be included in the distribution rates

25-28

charged to all other customers. Nothing in this section shall be construed as prohibiting an electric

25-29

distribution company from offering any special rates or programs for low-income customers

25-30

which are not in effect as of August 7, 1996, subject to the approval by the commission.

25-31

      (c) On or before November 15, 2008, the economic development corporation shall create

25-32

the municipal renewable energy investment program utilizing the lesser of fifty percent (50%) or

25-33

one million dollars ($1,000,000) collected annually from the .3 mils per kilo-watt hour charge for

25-34

renewable energy programs, to fund qualified municipal renewable energy projects in accordance

26-1

with this chapter and the following provisions:

26-2

      (1) The municipal renewable energy investment programs shall be administered pursuant

26-3

to rules established by the economic development corporation. Said rules shall provide

26-4

transparent criteria to rank qualified municipal renewable energy projects, giving consideration

26-5

to:

26-6

      (i) the feasibility of project completion;

26-7

      (ii) the anticipated amount of renewable energy the project will produce;

26-8

      (iii) the potential of the project to mitigate energy costs over the life of the project; and

26-9

      (iv) the estimated cost per kilo-watt hour (kwh) of the energy produced from the project.

26-10

Municipalities that have not previously received financing from this program shall be given

26-11

priority over those municipalities that have received funding under this program.

26-12

      (2) Beginning on January 1, 2009, the economic development corporation shall solicit

26-13

proposals from municipalities for eligible projects and shall award grants, in accordance with the

26-14

rules and ranking criteria, of no more than five hundred thousand dollars ($500,000) to each

26-15

eligible project.

26-16

      (3) Any funds not expended from the municipal renewable energy investment programs

26-17

in a given year shall remain in the fund and be added to the balance to be distributed in the next

26-18

award cycle. For the purposes of this section, qualified municipal renewable energy projects

26-19

means any project that produces renewable energy resources and whose output of power and

26-20

other attributes is controlled in its entirety by at least one Rhode Island city or town.

26-21

      (d) On or before November 15, 2008, the economic development corporation shall create

26-22

the nonprofit affordable housing renewable energy investment program utilizing the lesser of ten

26-23

percent (10%) or two hundred thousand dollars ($200,000) collected annually from the.3 mils per

26-24

kilo-watt hour charge for renewable energy programs to fund qualified nonprofit affordable

26-25

housing renewable energy projects in accordance with this chapter and the following provisions:

26-26

      (1) The nonprofit affordable housing renewable energy investment programs shall be

26-27

administered pursuant to rules established by the economic development corporation in

26-28

consultation with the Rhode Island housing mortgage finance corporation. Said rules shall

26-29

provide transparent criteria to rank qualified nonprofit affordable housing renewable energy

26-30

projects, giving consideration to:

26-31

      (i) the feasibility of project completion;

26-32

      (ii) the anticipated amount of renewable energy the project will produce;

26-33

      (iii) the potential of the project to mitigate energy costs over the life of the project; and

27-34

      (iv) the estimated cost per kilo-watt hour (kwh) of the energy produced from the project.

27-35

Nonprofit affordable housing agencies that have not previously received financing from this

27-36

program shall be given priority over those agencies that have received funding under this

27-37

program.

27-38

      (2) Beginning on January 1, 2009, the economic development corporation, in

27-39

consultation with the Rhode Island housing and mortgage finance corporation, shall solicit

27-40

proposals from eligible nonprofit housing agencies for renewable energy projects and shall award

27-41

grants, in accordance with the rules and ranking criteria. The economic development corporation

27-42

shall consult with the Rhode Island housing and mortgage finance corporation in the grant-

27-43

making process and shall notify the corporation of the awardees.

27-44

      (3) Any funds not expended from the affordable housing renewable energy investment

27-45

program in a given year shall remain in the fund and be added to the balance to be distributed in

27-46

the next award cycle. For the purposes of this section, "qualified nonprofit affordable housing

27-47

renewable energy projects" means any project that produces renewable energy resources and

27-48

whose output of power and other attributes is controlled in its entirety by at least one nonprofit

27-49

affordable housing development as defined in section 42-55-3 and is restricted to producing

27-50

energy for the nonprofit affordable housing development.

27-51

      (e)(d) The executive director of the economic development corporation is authorized and

27-52

may enter into a contract with a contractor for the cost effective administration of the renewable

27-53

energy programs funded by this section. A competitive bid and contract award for administration

27-54

of the renewable energy programs may occur every three (3) years and shall include as a

27-55

condition that after July 1, 2008 the account for the renewable energy programs shall be

27-56

maintained and administered by the economic development corporation as provided for in

27-57

subdivision (b) above.

27-58

      (f)(e) Effective January 1, 2007, and for a period of eleven (11) years thereafter, each gas

27-59

distribution company shall include, with the approval of the commission, a charge per deca therm

27-60

delivered to demand side management programs, including, but not limited to, programs for cost-

27-61

effective energy efficiency, energy conservation, combined heat and power systems, and

27-62

weatherization services for low income households.

27-63

      (g)(f) The gas company shall establish a separate account for demand side management

27-64

programs, which shall be administered and implemented by the distribution company, subject to

27-65

the regulatory reviewing authority of the commission. The commission may establish

27-66

administrative mechanisms and procedures that are similar to those for electric demand side

27-67

management programs administered under the jurisdiction of the commissions and that are

27-68

designed to achieve cost-effectiveness and high life-time savings of efficiency measures

28-1

supported by the program.

28-2

      (h)(g) The commission may, if reasonable and feasible, except from this demand side

28-3

management change charge:

28-4

      (i) gas used for distribution generation; and

28-5

      (ii) gas used for the manufacturing processes, where the customer has established a self-

28-6

directed program to invest in and achieve best effective energy efficiency in accordance with a

28-7

plan approved by the commission and subject to periodic review and approval by the

28-8

commission, which plan shall require annual reporting of the amount invested and the return on

28-9

investments in terms of gas savings.

28-10

      (i)(h) The commission may provide for the coordinated and/or integrated administration

28-11

of electric and gas demand side management programs in order to enhance the effectiveness of

28-12

the programs. Such coordinated and/or integrated administration may after March 1, 2009, upon

28-13

the recommendation of the office of energy resources, be through one or more third-party entities

28-14

designated by the commission pursuant to a competitive selection process.

28-15

      (j)(i) Effective January 1, 2007, the commission shall allocate from demand-side

28-16

management gas and electric funds authorized pursuant to this section 39-2-1.2, an amount not to

28-17

exceed two percent (2%) of such funds on an annual basis for the retention of expert consultants,

28-18

and reasonable administrations costs of the energy efficiency and resources management council

28-19

associated with planning, management, and evaluation of energy efficiency programs, renewable

28-20

energy programs and , system reliability least-cost procurement, and with regulatory proceedings,

28-21

contested cases, and other actions pertaining to the purposes, powers and duties of the council,

28-22

which allocation may by mutual agreement, be used in coordination with the office of energy

28-23

resources to support such activities.

28-24

     (j) Effective January 1, 2013, the commission shall annually allocate from the

28-25

administrative funding amount allocated in (i) from the demand-side management program as

28-26

described in subsection (i) as follows: sixty percent (60%) for the purposes identified in

28-27

subsection (i) and forty percent (40%) annually to the office of energy resources for activities

28-28

associated with planning management, and evaluation of energy efficiency programs, renewable

28-29

energy programs, system reliability, least-cost procurement, and with regulatory proceedings,

28-30

contested cases, and other actions pertaining to the purposes, powers and duties of the office of

28-31

energy resources.

28-32

     (k) On April 15, of each year the office and the council shall submit to the governor, the

28-33

president of the senate, and the speaker of the house of representatives, separate financial and

28-34

performance reports regarding the demand-side management programs, including the specific

29-1

level of funds that were contributed by the residential, municipal, and commercial and industrial

29-2

sectors to the overall programs, the businesses, vendors, and institutions that received funding

29-3

from demand-side management gas and electric funds used for the purposes in section 39-2-1.2;

29-4

and the businesses, vendors, and institutions that received the administrative funds for the

29-5

purposes in sections 39-2-1.2(i) and 39-2-1.2(j). These reports shall be posted electronically on

29-6

the websites of the office of energy resources and the energy efficiency resources management

29-7

council.

29-8

     SECTION 15. Section 39-26-7 of the General Laws in Chapter 39-26 entitled

29-9

"Renewable Energy Standard" is hereby amended to read as follows:

29-10

     39-26-7. Renewable energy development fund. -- (a) There is hereby authorized and

29-11

created within the economic development corporation a renewable energy development fund for

29-12

the purpose of increasing the supply of NE-GIS certificates available for compliance in future

29-13

years by obligated entities with renewable energy standard requirements, as established in this

29-14

chapter. The fund shall be located at and administered by the Rhode Island economic

29-15

development corporation in accrodance accordance with section 42-64-13.2. The economic

29-16

development corporation shall:

29-17

      Adopt plans and guidelines for the management and use of the fund in accordance with

29-18

section 42-64-13.2, and

29-19

      (b) The economic development corporation shall enter into agreements with obligated

29-20

entities to accept alternative compliance payments, consistent with rules of the commission and

29-21

the purposes set forth in this section; and alternative compliance payments received pursuant to

29-22

this section shall be trust funds to be held and applied solely for the purposes set forth in this

29-23

section.

29-24

      (c) The uses of the fund shall include but not be limited to:

29-25

      (1) Stimulating investment in renewable energy development by entering into

29-26

agreements, including multi-year agreements, for renewable energy certificates;

29-27

     (2) Establishing and maintaining a residential renewable energy program using eligible

29-28

technologies in accordance with section 39-26-5;

29-29

     (3) Providing technical and financial assistance to municipalities for interconnection and

29-30

feasibility studies, and/or the installation of renewable energy projects;

29-31

     (2)(4) Issuing assurances and/or guarantees to support the acquisition of renewable

29-32

energy certificates and/or the development of new renewable energy sources for Rhode Island;

29-33

      (3)(5) Establishing escrows, reserves, and/or acquiring insurance for the obligations of

29-34

the fund;

30-1

      (4)(6) Paying administrative costs of the fund incurred by the economic development

30-2

corporation, the board of trustees, or the office of energy resources, not to exceed ten percent

30-3

(10%) of the income of the fund, including, but not limited to, alternative compliance payments.

30-4

All funds transferred from the economic development corporation to support the office of energy

30-5

resources' administrative costs shall be deposited as restricted receipts.

30-6

      (d) NE-GIS certificates acquired through the fund may be conveyed to obligated entities

30-7

or may be credited against the renewable energy standard for the year of the certificate provided

30-8

that the commission assesses the cost of the certificates to the obligated entity, or entities,

30-9

benefiting from the credit against the renewable energy standard, which assessment shall be

30-10

reduced by previously made alternative compliance payments and shall be paid to the fund.

30-11

     SECTION 16. Section 42-64-13.2 of the General Laws in Chapter 42-64 entitled "Rhode

30-12

Island Economic Development Corporation" is hereby amended to read as follows:

30-13

     42-64-13.2. Renewable energy investment coordination. -- (a) Intent. - To develop an

30-14

integrated organizational structure to secure for Rhode Island and its people the full benefits of

30-15

cost-effective renewable energy development from diverse sources.

30-16

      (b) Definitions. - For purposes of this section, the following words and terms shall have

30-17

the meanings set forth in RIGL 42-64-3 unless this section provides a different meaning. Within

30-18

this section, the following words and terms shall have the following meanings:

30-19

      (1) "Corporation" means the Rhode Island economic development corporation.

30-20

      (2) "Municipality" means any city or town, or other political subdivision of the state.

30-21

      (3) "Office" means the office of energy resources established by chapter 42-140.

30-22

      (c) Purpose. - The corporation is authorized to integrate the management of public funds

30-23

to promote the expansion and sound development of renewable energy resources by providing

30-24

coordinated and cost-effective use of funds from:

30-25

      (1) The renewable energy program of the demand side management program as set forth

30-26

in section 39-2-1.2; and

30-27

      (2) The renewable energy development fund of the renewable energy standard, as set

30-28

forth in chapter 39-26.

30-29

      (3) The office of energy resources from the sale of allowances under the greenhouse gas

30-30

initiative act to the extent available for renewable energy, as set forth in chapter 23-82.

30-31

      (d)(c) Renewable energy development fund. - The corporation shall, in the furtherance of

30-32

its responsibilities to promote and encourage economic development, establish and administer a

30-33

renewable energy development fund as provided for in section 39-26-7, may exercise the powers

30-34

set forth in this chapter, as necessary or convenient to accomplish this purpose, and shall provide

31-1

such administrative support as may be needed for the coordinated administration of the renewable

31-2

energy standard as provided for in chapter 39-26 and the renewable energy program established

31-3

by section 39-2-1.2. The corporation may upon the request of any person undertaking a renewable

31-4

energy facility project, grant project status to the project, and a renewable energy facility project,

31-5

which is given project status by the corporation, shall be deemed an energy project of the

31-6

corporation.

31-7

      (e)(d) Duties. - The corporation shall, with regards to renewable energy project

31-8

investment:

31-9

      (1) Establish by rule, in consultation with the office, standards for financing renewable

31-10

energy projects from diverse sources.

31-11

      (2) Enter into agreements, consistent with this chapter and renewable energy investment

31-12

plans adopted by the office, to provide support to renewable energy projects that meet applicable

31-13

standards established by the corporation. Said agreements may include contracts with

31-14

municipalities and public corporations.

31-15

      (f)(e) Conduct of activities.

31-16

      (1) To the extent reasonable and practical, the conduct of activities under the provisions

31-17

of this chapter shall be open and inclusive; the director shall seek, in addressing the purposes of

31-18

this chapter, to involve the research and analytic capacities of institutions of higher education

31-19

within the state, industry, advocacy groups, and regional entities, and shall seek input from

31-20

stakeholders including, but not limited to, residential and commercial energy users.

31-21

      (2) By January 1, 2009, the director shall adopt:

31-22

      (A) Goals for renewable energy facility investment which is beneficial, prudent, and

31-23

from diverse sources;

31-24

      (B) A plan for a period of five (5) years, annually upgraded as appropriate, to meet the

31-25

aforementioned goals; and

31-26

      (C) Standards and procedures for evaluating proposals for renewable energy projects in

31-27

order to determine the consistency of proposed projects with the plan.

31-28

      (g) (f) Reporting. - On March 1, of each year after the effective date of this chapter, the

31-29

corporation shall submit to the governor, the president of the senate, the speaker of the house of

31-30

representatives, and the secretary of state, a financial and performance report. These reports shall

31-31

be posted electronically on the general assembly and the secretary of state's websites as

31-32

prescribed in section 42-20-8.2. The reports shall set forth:

31-33

      (1) The corporation's receipts and expenditures in each of the renewable energy program

31-34

funds administered in accordance with this section.

32-1

      (2) A listing of all private consultants engaged by the corporation on a contract basis and

32-2

a statement of the total amount paid to each private consultant from the two (2) renewable energy

32-3

funds administered in accordance with this chapter; a listing of any staff supported by these

32-4

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

32-5

      (3) A summary of performance during the prior year including accomplishments and

32-6

shortcomings; project investments, the cost-effectiveness of renewable energy investments by the

32-7

corporation; and recommendations for improvement.

32-8

     SECTION 17. Sections 42-140-3, 42-140-7 and 42-140-9 of the General Laws in Chapter

32-9

42-140 entitled "Rhode Island Energy Resources Act" are hereby amended to read as follows:

32-10

     42-140-3. Purposes. -- The purposes of the office shall be to:

32-11

      (1) Develop and put into effect plans and programs to promote, encourage, and assist the

32-12

provision of energy resources for Rhode Island in a manner that enhances economic well-being,

32-13

social equity, and environmental quality;

32-14

      (2) Monitor, forecast, and report on energy use, energy prices, and energy demand and

32-15

supply forecasts, and make findings and recommendations with regard to energy supply diversity,

32-16

reliability, and procurement, including least-cost procurement;

32-17

      (3) Develop and to put into effect plans and programs to promote, encourage and assist

32-18

the efficient and productive use of energy resources in Rhode Island, and to coordinate energy

32-19

programs for natural gas, electricity, and heating oil to maximize the aggregate benefits of

32-20

conservation and efficiency of investments;

32-21

      (4) Monitor and report technological developments that may result in new and/or

32-22

improved sources of energy supply, increased energy efficiency, and reduced environmental

32-23

impacts from energy supply, transmission and distribution;

32-24

      (5) Administer the programs, duties, and responsibilities heretofore exercised by the state

32-25

energy office, except as these may be assigned by executive order or the general laws to other

32-26

departments and agencies of state government;

32-27

      (6) Develop, recommend and, as appropriate, implement integrated and/or

32-28

comprehensive strategies, including at regional and federal levels, to secure Rhode Island's

32-29

interest in energy resources, their supply and efficient use, and as necessary to interact with

32-30

persons, private sector, non-profit, regional, federal entities and departments and agencies of

32-31

other states to effectuate this purpose;

32-32

      (7) Cooperate with agencies, departments, corporations, and entities of the state and of

32-33

political subdivisions of the state in achieving its purposes;

33-34

      (8) Cooperate with and assist the state planning council and the division of state planning

33-35

in developing, maintaining, and implementing state guide plan elements pertaining to energy and

33-36

renewable energy;

33-37

     (9) Coordinate the energy efficiency, renewable energy, least cost procurement, and

33-38

systems reliability plans and programs with the energy efficiency resource management council

33-39

and the renewable energy coordinating board;

33-40

     (10) Participate in, monitor implementation of, and provide technical assistance for the

33-41

low-income home energy assistance program enhancement plan established pursuant to section

33-42

39-1-27.12;

33-43

     (11) Participate in and monitor the distributed generation standard contracts program

33-44

pursuant to chapter 39-26-2;

33-45

     (12) Coordinate opportunities with and enter into contracts and/or agreements with the

33-46

economic development corporation associated with the energy efficiency, least-cost procurement,

33-47

system reliability, and renewable energy fund programs;

33-48

     (13) Provide support and information to the division of planning and the state planning

33-49

council in development of a ten (10) year Rhode Island Energy Guide Plan, which shall be

33-50

reviewed and amended if necessary every five (5) years;

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     (14) Provide funding support if necessary to the renewable energy coordinating board

33-52

and/or the advisory council to carry out the objectives pursuant to chapter 42-140-3;

33-53

      (9)(15) Administer, as assigned by law or executive order, state and federally funded or

33-54

authorized energy programs, which may include, but not be limited to Advise and provide

33-55

technical assistance to state and federally funded energy program to support:

33-56

      (i) The federal low-income home energy assistance program which provides heating

33-57

assistance to eligible low-income persons and any state funded or privately funded heating

33-58

assistance program of a similar nature assigned to it for administration;

33-59

      (ii) The weatherization assistance program which offers home weatherization grants and

33-60

heating system upgrades to eligible persons of low-income;

33-61

      (iii) The emergency fuel program which provides oil deliveries to families experiencing

33-62

a heating emergency;

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      (iv) The energy conservation program, which offers service and programs to all sectors;

33-64

and

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      (v) [Deleted by P.L. 2008, ch. 228, section 2, and P.L. 2008, ch. 422, section 2.]

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      (10)(16) Advise the economic development corporation in the development of standards

33-67

and rules for the solicitation and award of renewable energy program investment funds in

33-68

accordance with section 42-64-13.2;

34-1

      (11)(17) Develop, recommend, and evaluate energy programs for state facilities and

34-2

operations in order to achieve and demonstrate the benefits of energy-efficiency, diversification

34-3

of energy supplies, energy conservation, and demand management; and

34-4

      (12)(18) Advise the governor and the general assembly with regard to energy resources

34-5

and all matters relevant to achieving the purposes of the office.

34-6

     42-140-7. Conduct of activities. -- (a) To the extent reasonable and practical, the

34-7

conduct of activities under the provisions of this chapter shall be open and inclusive; the

34-8

commissioner and the council shall seek in addressing the purposes of the office to involve the

34-9

research and analytic capacities of institutions of higher education within the state, industry,

34-10

advocacy groups, and regional entities, and shall seek input from stakeholders including, but not

34-11

limited to, residential and commercial energy users.

34-12

      (b) The commissioner shall transmit any unencumbered funds from the renewable

34-13

energy program under chapter 39-2 to the economic development corporation to be administered

34-14

in accordance with a the provisions of section 39-2-1.2.

34-15

     42-140-9. Adoption of rules. -- The commissioner shall have the authority to adopt,

34-16

amend, and implement such rules as may be necessary to desirable to effectuate the purposes of

34-17

this chapter. In any rule making by the commissioner, the commissioner shall consider as a matter

34-18

of record the advise advice of the energy resources council and the renewable energy

34-19

coordinating board.

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     SECTION 18. The Administration shall submit to the Chairpersons of the House and

34-21

Senate Finance Committees by November 1, 2012, a plan to transfer the Rhode Island Public

34-22

Telecommunications Authority from state to private support as part of the FY 2014 budget

34-23

process and include any statutory language required to support the transaction.

34-24

     SECTION 19. Section 23-27.3-108.2 of the General Laws in Chapter 23-27.3 entitled

34-25

"State Building Code" is hereby amended to read as follows:

34-26

     23-27.3-108.2. State building commissioner's duties. -- (a) This code shall be enforced

34-27

by the state building commissioner as to any structures or buildings or parts thereof that are

34-28

owned or are temporarily or permanently under the jurisdiction of the state or any of its

34-29

departments, commissions, agencies, or authorities established by an act of the general assembly,

34-30

and as to any structures or buildings or parts thereof that are built upon any land owned by or

34-31

under the jurisdiction of the state.

34-32

      (b) Permit fees for the projects shall be established by the committee. The fees shall be

34-33

deposited as general revenues.

35-34

      (c)(1) The local cities and towns shall charge each permit applicant an additional .1

35-35

(.001) percent (levy) of the total construction cost for each permit issued. The levy shall be

35-36

limited to a maximum of fifty dollars ($50.00) for each of the permits issued for one and two (2)

35-37

family dwellings. This additional levy shall be transmitted monthly to the building commission at

35-38

the department of administration, and shall be used to staff and support the purchase or lease and

35-39

operation of a web-accessible service and/or system to be utilized by the state and municipalities

35-40

for uniform, statewide electronic plan review, permit management and inspection system and

35-41

other programs described in this chapter. The fee levy shall be deposited as general revenues.

35-42

     (2) On or before July 1, 2013, the building commissioner shall develop a standard

35-43

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

35-44

     (3) On or before December 1, 2013, the building commissioner, with the assistance of the

35-45

office of regulatory reform, shall implement the standard statewide process for electronic plan

35-46

review, permit management and inspection. In addition, the building commissioner shall develop

35-47

a technology and implementation plan for a standard web-accessible service and/or system to be

35-48

utilized by the state and municipalities for uniform, statewide electronic plan review, permit

35-49

management and inspection.

35-50

      (d) The building commissioner shall, upon request by any state contractor described in

35-51

section 37-2-38.1, review, and when all conditions for certification have been met, certify to the

35-52

state controller that the payment conditions contained in section 37-2-38.1 have been met.

35-53

     (e) The building commissioner shall coordinate the development and implementation of

35-54

this section with the state fire marshal to assist with the implementation of section 23-28.2-6.

35-55

     (f) The building commissioner shall submit, in coordination with the state fire marshal, a

35-56

report to the governor and general assembly on or before April 1, 2013 and each April 1st

35-57

thereafter, providing the status of the web-accessible service and/or system implementation and

35-58

any recommendations for process or system improvement.

35-59

     SECTION 20. Section 23-28.2-6 of the General Laws in Chapter 23-28.2 entitled

35-60

"Division of Fire Safety" is hereby amended to read as follows:

35-61

     23-28.2-6. Additional powers and duties of fire marshal. -- In carrying out the

35-62

purposes of this chapter, the state fire marshal is authorized and directed:

35-63

      (1) To procure in his or her discretion as many deputy state fire marshals and assistant

35-64

deputy state fire marshals as needed, and the temporary or intermittent services of experts or

35-65

consultants or organizations thereof, by contract, when the services are to be performed on a part-

35-66

time or fee-for-service basis and do not involve the performance of administrative duties;

35-67

      (2) To enter into agreements for the utilization of the facilities and services of the

35-68

division of occupational safety, or its successors, to the extent that he or she considers it desirable

36-1

to effectuate the purposes of this chapter, and to enter into agreements for the utilization of the

36-2

facilities and services of other departments, agencies, and institutions, public or private;

36-3

      (3) To accept on behalf of the state and to deposit with the general treasurer any grant,

36-4

gift, or contribution made to assist in meeting the cost of carrying out the purposes of this code,

36-5

and to expend the same for such purposes;

36-6

      (4) To supervise or conduct any fire safety inspections required by any other state or

36-7

federal agencies;

36-8

      (5) To formulate, coordinate, implement, or cause implementation of, appropriate

36-9

education and training programs relating to fire fighting training, fire prevention, fire protection,

36-10

fire inspection, and fire investigation.

36-11

     (6) To support, in coordination with the state building commissioner and the office of

36-12

regulatory reform, the purchase or lease and operation of a web-accessible service and/or system

36-13

to be utilized by the state and municipalities for a uniform, statewide electronic plan review,

36-14

permit management and inspection system and other programs described in this chapter.

36-15

     (7) To coordinate with the state building commissioner on the submission of a report to

36-16

the governor and general assembly on or before April 1, 2013 and each April 1st thereafter,

36-17

providing the status of the web-accessible service and/or system implementation and any

36-18

recommendations for process or system improvement.

36-19

     SECTION 21. Section 42-64.13-7 of the General Laws in Chapter 42-64.13 entitled

36-20

"Rhode Island Regulatory Reform Act" is hereby amended to read as follows:

36-21

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

36-22

reform shall have the following powers:

36-23

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

36-24

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

36-25

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

36-26

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

36-27

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

36-28

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

36-29

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

36-30

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

36-31

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

36-32

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

36-33

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

36-34

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

37-1

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

37-2

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

37-3

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

37-4

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

37-5

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

37-6

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

37-7

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

37-8

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

37-9

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

37-10

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

37-11

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

37-12

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

37-13

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

37-14

character, before and/or by an agency.

37-15

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

37-16

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

37-17

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

37-18

upon findings that:

37-19

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

37-20

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

37-21

municipality herein; and

37-22

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

37-23

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

37-24

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

37-25

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

37-26

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

37-27

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

37-28

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

37-29

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

37-30

      (B) The rationale for his or her intervention;

37-31

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

37-32

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

37-33

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

37-34

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

38-1

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

38-2

legal proceeding relating to any matter.

38-3

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

38-4

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

38-5

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

38-6

     SECTION 22. Section 42-17.1-17 of the General Laws in Chapter 42-17.1 entitled

38-7

"Department of Environmental Management" is hereby amended to read as follows:

38-8

     42-17.1-17. Transfer of powers and functions from department of environmental

38-9

management. -- (a) There are hereby transferred to the department of administration:

38-10

      (1) Those functions of the department of environmental management which were

38-11

administered through or with respect to departmental programs in the performance of strategic

38-12

planning as defined in section 42-11-10(c);

38-13

      (2) All officers, employees, agencies, advisory councils, committees, commissions, and

38-14

task forces of the department of environmental management who were performing strategic

38-15

planning functions as defined in section 42-11-10(c); and

38-16

      (3) So much of other functions or parts of functions and employees and resources,

38-17

physical and funded, related thereto of the director of environmental management as are

38-18

incidental to and necessary for the performance of the functions transferred by subdivisions (1)

38-19

and (2).

38-20

      (b) There are hereby transferred to the department of public safety dispatch functions of

38-21

the division of enforcement of the department of environmental management.

38-22

      (c) In order that there is no interruption in the dispatch functions of the division of

38-23

enforcement, the actual transfer of the dispatch functions, corresponding resources, and personnel

38-24

to the department of public safety, may be postponed until such time, as determined by the

38-25

director of public safety, that the transfer provided herein may be best put into force and effect,

38-26

but shall occur no later than January 1, 2012 and shall be reflected in the FY 2012 supplemental

38-27

budget submission.

38-28

     SECTION 23. This article shall take effect upon passage.