2015 -- S 0693

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LC002033

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- EXECUTIVE OFFICE OF

COMMERCE

     Introduced By: Senators Picard, and Pearson

     Date Introduced: March 18, 2015

     Referred To: Senate Commerce

     (Commerce)

It is enacted by the General Assembly as follows:

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

Workforce Coordination Cabinet" is hereby repealed in its entirety.

CHAPTER 42-6.1

Governor's Commerce and Workforce Coordination Cabinet

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

be chair.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

succeed himself or herself.

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

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

Members may be removed by the governor for cause.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

to capacity or fitness for the office shall be unlawful.

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

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

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

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

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

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

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

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

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

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

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

performance during the previous fiscal year including accomplishments, shortcomings and

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

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

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

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

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

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

enforcement of this provision.

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

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

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

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

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

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

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

corporation is constituted a public instrumentality exercising public and essential governmental

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

for misfeasance, malfeasance, or willful neglect of duty.

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

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

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

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

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

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

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

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

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

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

out his or her duties under this chapter.

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

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

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

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

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

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

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

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

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

agents or employees those administrative duties they may deem proper.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

cost of each bond shall be paid by the corporation.

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

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

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

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

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

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

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

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

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

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

authorization of this contract.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

consent of the governor.

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

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

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

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

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

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

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

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

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

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

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

governmental function.

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

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

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

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

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

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

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

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

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

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

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

only in the event of a tie.

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

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

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

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

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

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

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

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

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

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

the corporation.

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

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

immediately and need not be published or posted.

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

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

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

duties.

     SECTION 6. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- EXECUTIVE OFFICE OF

COMMERCE

***

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

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

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

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

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

regulation.

     This act would take effect upon passage.

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