2016 -- H 7071

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- LEAN GOVERNMENT

INITIATIVE ACT

     Introduced By: Representatives Solomon, Edwards, Coughlin, Shekarchi, and

     Date Introduced: January 07, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

read as follows:

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

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

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

passage of this act;

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

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

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

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

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

in Rhode Island; and

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

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

the overall health and welfare of its citizens.

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

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

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

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

time than more traditional systems.

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

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

context of Lean analysis, in their processes.

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

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

outcomes.

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

     (i) Eliminating or drastically reducing backlog;

     (ii) Reducing lead times;

     (iii) Simplifying processes;

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

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

     (vi) Improving staff morale and process transparency.

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

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

     42-64.13-3. Purposes of chapter. -- The purposes of this chapter are to create within the

office of management and budget, the office of regulatory reform that will facilitate the regular

review of Rhode Island's regulatory processes and permitting procedures; report thereon in an

effort to improve them; and assist and facilitate economic development opportunities within the

regulatory and permitting processes and procedures that exist within Rhode Island state and

municipal government, and to ensure the implementation of Lean tools and enterprises as a

component of a performance management system for all state government departments, boards,

commissions, and agencies.

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

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

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

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

commissions with regulatory and permitting authority and responsibilities.

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

reform shall have the following powers:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

character, before and/or by an agency.

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

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

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

upon findings that:

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

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

municipality herein; and

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

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

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

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

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

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

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

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

      (B) The rationale for his or her intervention;

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

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

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

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

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

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

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

in Rhode Island.

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

legal proceeding relating to any matter.

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

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

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

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

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

statements on small businesses.

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

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

integration into state governance and operational systems.

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

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

of integrating continuous improvement into the organizational culture.

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

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

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

enterprises to improve agency results.

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

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implement departmental Lean programs.

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

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

missions.

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

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

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

and justify critical and far-reaching changes.

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

accomplishments.

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

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

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

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

changes in overall direction.

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

related changes which have a direct impact over their implementation.

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

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

implementation of Lean tools and enterprises in state government.

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

understanding of Lean work in state government.

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

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

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

January 1, 2017, each department, agency, board, or commission, subject to the Lean government

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

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

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

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

programs.

     (b) Beginning July 1, 2017 and each year thereafter, the office of regulatory reform shall

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

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

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chapter.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- LEAN GOVERNMENT

INITIATIVE ACT

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

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

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

mandatory yearly progress reporting requirement.

     This act would take effect upon passage.

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