2017 -- H 5985

========

LC001927

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

____________

A N   A C T

RELATING TO GENERAL ASSEMBLY -- JOINT COMMITTEE ON REGULATORY

OVERSIGHT

     Introduced By: Representatives Amore, Filippi, Keable, and O`Grady

     Date Introduced: March 23, 2017

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Legislative Findings. It is found and declared:

     The general assembly's delegation of its authority to statutorily created entities for the

purpose of those entities using their knowledge and expertise to effectuate a legislative purpose is

the foundation of administrative law.

     The failure of many administrative agencies to act within the scope of their authority in

promulgating rules and regulations that have the same effect as those laws passed by the

legislature has had a detrimental effect on the general assembly's ability to govern.

     That the people have provided a temporary grant of their authority to three separate and

co-equal branches of government to protect their interests and ensure that the constitution and the

laws of this state are enforced.

     That the purpose behind the "Separation of Powers Amendment" does not mean only,

that legislators cannot serve on bodies having executive authority, but that executive and other

governmental agencies, no matter where they derive their authority from, cannot infringe upon

the legislature's authority either.

     SECTION 2. Chapter 22-14 of the General Laws entitled "Legislative Oversight

Commission" is hereby repealed in its entirety.

CHAPTER 22-14

Legislative Oversight Commission

     22-14-1. Establishment -- Purpose -- Membership -- Compensation.

     (a) There is established an oversight commission empowered to conduct evaluations and

reviews of statutes, statutory entities, and associated rules and regulations. The review or

evaluation shall include, but not be limited to, the following as its objectives:

     (1) The elimination of inactive entities or statutes;

     (2) The elimination of entities or statutes that duplicate other entities or statutes or other

governmental programs and activities or determination of an appropriate consolidation for the

duplicate entities, statutes, or governmental programs and activities;

     (3) The elimination or modification of inefficient, unnecessary, or ineffective entities or

statutes; and

     (4) The determination of the impact of rules and regulations promulgated by any entity.

     (b) The commission shall consist of fourteen (14) members all of whom shall be citizens

and residents of this state; four (4) of whom shall be members of the house of representatives, not

more than three (3) from the same political party, to be appointed by the speaker; three (3) of

whom shall be members of the senate, not more than two (2) from the same political party, to be

appointed by the president of the senate; one of whom shall be the director of administration; four

(4) of whom shall be members of the general public to be appointed by the governor; one of

whom shall be the fiscal assistant to the house finance committee; and one of whom shall be the

auditor general.

     (c) The public members shall be appointed for terms of three (3) years except for the two

(2) members originally appointed; one shall be appointed for a term of one year and one shall be

appointed for a term of two (2) years.

     (d) The legislative members shall serve a term of two (2) years. The members shall

annually elect one of them as chairperson of the commission.

     (e) Any vacancy on the commission, occurring for any reason prior to the expiration of

the term, including, but not limited to, termination of active membership in the general assembly,

shall be filled for the unexpired term by the appointing authority in the same manner as the

original appointment.

     (f) Any member of the commission may, for cause, be summarily removed from office by

the appointing authority, which removal shall be subject to judicial review by the superior court,

and pending that review the member shall not carry out any duties as a commission member.

     (g) The director of administration, the fiscal assistant to the house finance committee, and

the auditor general respectively may designate a person to represent them at all commission

meetings.

LC001927 - Page 2 of 13

     (h) The members of the commission, except those members from the general public, shall

receive no salaries but shall be allowed reasonable expenses in the performance of their official

duties.

     (i) The members from the general public shall not be compensated for service on the

board.

     22-14-2. Quorum -- Meetings.

     Six (6) members of the commission shall constitute a quorum for the transaction of any

business. Meetings of the commission may be held at any time or place upon call of any member,

after a reasonable notice by mail to the other members, and shall be held at the times and places

as in the judgment of the commission will best serve the convenience of all parties in interest.

     22-14-3. Rules and regulations.

     The commission shall adopt reasonable rules and regulations in compliance with the open

meetings law governing its operations and procedure to carry out the purposes of this chapter.

These rules and regulations shall include, but are not limited to, public hearings to determine

whether or not the existence of any entity due to expire in that year should be continued.

     22-14-4. Definitions.

     For the purposes of this chapter:

     (1) "Statutory entity" or "entity" means any committee, board, commission, or

"subdivision of state government" created and continued in existence for the purpose of

administering a statute or legislative resolution. Cities and towns and agencies and

instrumentalities of cities and towns are exempted from this definition.

     (2) "Termination date" means the date provided for termination of legislative authority

for the existence of a particular entity or statute.

     (3) "Zero-base budget review and evaluation" means, with respect to a statutory entity, a

comprehensive evaluation to determine if the merits of the activities of the entity support its

continuation, and a recommended budget level for the entity, based upon a justification by that

entity of its budget from a zero base.

     22-14-5. Repealed.

     22-14-5.1. Repealed.

     22-14-5.2. Repealed.

     22-14-5.3. Entities without expiration date -- Statutory construction.

     For the purpose of construing this chapter in determining the expiration date of any

statutory entity, the lack of a specific date for expiration of an entity shall mean that it is the intent

of the general assembly to continue the entity in existence until the general assembly by specific

LC001927 - Page 3 of 13

legislation ends the statutory existence of the entity.

     22-14-5.4. Repealed.

     22-14-6. Procedure for re-creation.

     (a) The procedure for re-creation of any statute or statutory entity to be terminated under

the provisions of this chapter shall be established by the commission. Those procedures shall

include a zero-base budget review and evaluation by the auditor general as well as any other

procedures which the commission determines are necessary to meet its objectives.

     (b) Each entity shall be notified of its termination date, and that a review by the auditor

general will begin. The entity shall also be notified of all other procedures with which it will be

expected to comply.

     (c) Upon completion of the zero-based budget review and evaluation the office of auditor

general shall transmit its report to the commission. The report shall include, but not be limited to:

     (1) An identification of other entities, or other programs or activities of the state

government, having the same or similar objectives, along with a comparison of the cost and

effectiveness of those entities, programs, or activities and any duplication of the entity under

review;

     (2) An examination of the extent to which the objectives of the entity under review have

been achieved when compared to the objectives initially set forth for the entity under review and

an analysis of any significant variance between projected and actual performance; and

     (3) A statement of the objectives of the entity for the coming four (4) years with the

establishment of measurements of performance where feasible.

     22-14-7. Commission report.

     The commission shall adopt and make public regulations and guidelines for determining

the continued public need for such governmental bodies. The regulations and guidelines shall

include, but not be limited to, the following criteria:

     (1) Would the termination of the entity or statute significantly harm or endanger the

public health, safety, or welfare?

     (2) Has the entity met the objectives of the statute that created it?

     (3) Has the entity or statute encouraged participation by the public?

     (4) Do the functions of the entity or statute overlap or duplicate the functions of any other

entity or statute?

     (5) What are the objectives of the entity or statute for the next five (5) years?

     22-14-8. Activities by terminated statutory entity.

     Each entity may continue itself in existence for up to one year after scheduled termination

LC001927 - Page 4 of 13

for the purpose of completing its work and activities. During this completion period, termination

shall not reduce or otherwise limit the powers or authority of each entity. Upon the expiration of

one year after termination, each entity shall cease. All unexpended balances of appropriations or

other funds shall revert to the general fund.

     22-14-9. Repealed.

     22-14-10. Proceedings against statutory entity.

     Nothing in this chapter shall cause any right, claim, or cause of action held by any person

against any entity to be dismissed, nor shall any right, claim, or cause of action held by any entity

which has been terminated pursuant to this chapter lapse because of this chapter.

     22-14-11. Legislative action.

     Whenever the general assembly is about to create or re-create any statutory entity it

should, whenever possible, request a report from the commission as set forth in § 22-14-7;

however, no report is required to be received by the general assembly for any action to be taken,

and nothing in this chapter shall be construed to prohibit the legislature from terminating an entity

covered by these provisions at a date earlier than that provided in this chapter, nor to prohibit the

legislature from considering any other legislation relative to that entity.

     22-14-12. Retirement systems unaffected.

     The provisions of this chapter do not apply to retirement systems.

     22-14-13. State bonds.

     Notwithstanding any other provisions of this chapter to the contrary, no entity which has

outstanding bonds shall be abolished until and unless provision is made for the payment of

principal and interest of the bonds at or before maturity or for the assumption of the indebtedness

by the state or any agency or subdivision of the state.

     22-14-14. Severability.

     If any provisions or item of this chapter or the application of it is held invalid, the

invalidity shall not affect other provisions, items, or applications, and to this end the provisions of

this chapter are declared severable.

     SECTION 3. Chapter 22-11 of the General Laws entitled "Joint Committee on

Legislative Services" is hereby amended by adding thereto the following section:

     22-11-4.1. Director of regulatory oversight.

     (a) The joint committee on legislative services is authorized and empowered to appoint a

director of regulatory oversight, who shall perform the duties as prescribed by the joint committee

on legislative services and chapter 11.1 of this title.

     (b) The joint committee on legislative services shall employ a number of qualified

LC001927 - Page 5 of 13

persons it deems necessary for the efficient operation of the joint committee on regulatory

oversight.

     SECTION 4. Title 22 of the General Laws entitled "GENERAL ASSEMBLY" is hereby

amended by adding thereto the following chapter:

CHAPTER 11.1

PERMANENT JOINT COMMITTEE ON REGULATORY OVERSIGHT

     22-11.1-1. Establishment – Purpose – Membership -- Committee.

     (a) There is established a permanent joint committee on regulatory oversight empowered

to conduct evaluations and reviews of statutes, statutory entities, and associated rules and

regulations. The review or evaluation shall include, but not be limited to, the following as its

objectives:

     (1) The elimination of inactive entities or statutes;

     (2) The elimination of entities or statutes that duplicate other entities or statutes or other

governmental programs and activities or determination of an appropriate consolidation for the

duplicate entities, statutes, or governmental programs and activities;

     (3) The elimination or modification of inefficient, unnecessary, or ineffective entities or

statutes; and

     (4) The review of rules and regulations promulgated by any entity before they become

effective, and a determination that the rules and regulations:

     (i) Are enacted under the proper authority of the entity;

     (ii) Are in furtherance of the legislature's intent in the area of law being regulated;

     (iii) The fiscal impact, the proposed rule or regulation will have on persons, businesses,

and other governmental entities or subdivisions of the state; and

     (iv) Are not otherwise illegal or unconstitutional under federal and state provisions.

     (b) The committee shall consist of seven (7) members: four (4) of whom shall be

members of the house of representatives, not more than three (3) from the same political party, to

be appointed by the speaker; three (3) of whom shall be members of the senate, not more than

two (2) from the same political party. The chair of the committee shall be appointed by the

speaker of the house and the vice chair shall be appointed by the president of the senate.

     (c) A director appointed by the joint committee on legislative services shall, in addition to

the day-to-day operations, be responsible for providing all research, data and analysis required by

the committee in enacting the purposes of this chapter.

     22-11.1-2. Review of proposed rules and regulations.

     (a) No rule or regulation promulgated under authority granted by the general assembly or

LC001927 - Page 6 of 13

otherwise having legislative effect shall become effective without first being submitted to the

joint committee on regulatory oversight for its approval pursuant to this chapter. The committee

shall review, approve, or reject, in total or in part, rules and regulations proposed by any entity.

     (1) Rules and regulations approved by the committee shall become effective upon being

properly filed with the secretary of state.

     (2) Any rule or regulation rejected in total or in part shall be reported to both houses of

the general assembly for action.

     (b) Rules and regulations submitted to the committee after December 1 and before April

1 of each year shall be scheduled for action within sixty (60) days from the date the rules or

regulations are submitted.

     (c)(1) Rules and regulations, submitted after April 1, and before December 1, whose

approval is immediately necessary shall be filed with the committee along with an affidavit

signed by an authorized person of the entity, describing:

     (i) The reason that rule or regulation is immediately necessary;

     (ii) The reason that the rule or regulation wasn't submitted in the time frame provided for

in subsection (b) of this section; and

     (iii) Their belief as to the consequences of not acting on the proposed rules or regulations

immediately.

     (2) Based upon the presentation of the affidavit, a majority of the committee may approve

the rule or regulation on a temporary basis and until such time the general assembly is in session

and the committee can act on it properly.

     (d)(1) Rules and regulations of an emergency nature, whose approval is immediately

necessary shall be filed with the committee along with an affidavit signed by an authorized

person of the entity, describing:

     (i) The nature of the emergency;

     (ii) The reason that rule or regulation is immediately necessary;

     (iii) The reason that the entity hadn't taken the proper steps to promulgate the rule or

regulation in anticipation of the emergency;

     (iv) The reason that the rule or regulation wasn't submitted in the time frame provided for

in subsection (b) of this section; and

     (v) Their belief as to the consequences of not acting on the proposed rules or regulations

immediately.

     (2) Based upon the presentation of the affidavit, a majority of the committee may approve

the rule or regulation on an emergency basis and until such time the general assembly is in

LC001927 - Page 7 of 13

session and the committee can act on it properly.

     (e) A majority vote of the committee's members present shall decide all votes. A quorum

shall consist of a simple majority.

     (f)(1)Each entity, its director, officers and staff shall assist the committee in its

administrative duties and in scheduling meetings and providing all of the information necessary

for the committee or its commission to accomplish its purpose.

     (2) Each entity shall inform the committee in advance of all proposed rules and

regulations and provide, at a minimum, a brief synopsis of the purpose behind the proposed rules

and regulations.

     22-11.1-3. Definitions.

     For the purposes of this chapter:

     (1) "Committee" means the permanent joint committee on governmental oversight.

     (2) "Commission" means the public body established under §22-14-1.2.

     (3) "Fiscal impact" in addition to its ordinary meaning as used throughout the general

laws, means and refers to the impact and financial cost that any rule, regulation or order will have

on persons, businesses and other governmental entities in the state.

     (4) "Order" means any rule, regulation or provision enacted by a governmental body

other than the general assembly whose regulatory purposes infringes upon the authority of the

legislature.

     (5) "Regulation" means any rule, regulation or provision promulgated or established

under the administrative procedures act, any grant of authority, or perceived to have been enacted

properly.

     (6) "Rule" means any rule, regulation or provision promulgated or established under the

administrative procedures act, any grant of authority, or perceived to have been enacted properly.

     (7) "State agency" means a separate agency or unit of state government created or

established by law and includes, but is not limited to, the following and the officers of the

following: authority, board, branch, bureau, commission, council, department, division,

institution, office, officer, or public corporation, as the case may be, except any agency or unit

within the legislative branch of state government.

     (8) "Statutory entity" or "entity" means any committee, board, commission, or

"subdivision of state government" created and continued in existence for the purpose of

administering a statute or legislative resolution. Cities and towns and agencies and

instrumentalities of cities and towns are exempted from this definition.

     (9) "Termination date" means the date provided for termination of legislative authority

LC001927 - Page 8 of 13

for the existence of a particular entity or statute.

     22-11.1-4. Rules and regulations.

     (a) Consistent with the rules of each house of the general assembly, the joint committee

on regulatory oversight is authorized and empowered to adopt any rules and regulations that are

deemed necessary to accomplish the purposes of this chapter, a copy of which rules and

regulations shall be filed with the secretary of state and available for public inspection.

     (b) These rules and regulations shall include, but are not limited to, public hearings to

determine:

     (1) The continued need for public entities and statutes enacted by the general assembly;

     (2) The continued need for rules and regulations promulgated under the authority of the

general assembly;

     (3) The continued need for rules and regulations promulgated by public entities created

by the general assembly;

     (4) If any rule, regulation or entity, promulgated or created outside the authority of the

general assembly infringes upon the authority of the legislature;

     (5) The effect of any matter the committee believes impacts the citizens and businesses of

the state by establishing onerous regulations or obligations that should be reserved for the general

assembly;

     (6) A method for the public to petition the committee to conduct an evaluation and

review of specific statutes, statutory entities, and associated rules and regulations;

     (7) The process of making recommendations to:

     (i) Both houses of the general assembly;

     (ii) Any constitutional office affected or promulgating the proposed rule, regulation or

order; and

     (iii) The entity that offered the proposed rule or regulation;

     (8) The process of making requests to the advisory commission; and

     (9) Procedures under which the advisory commission is authorized to act.

     (c) Regulations and guidelines regarding the continued need for such public bodies as

provided herein shall include, but not be limited to, the following criteria:

     (1) Would the termination of the entity or statute significantly harm or endanger the

public health, safety, or welfare?

     (2) Has the entity met the objectives of the statute that created it?

     (3) Has the entity or statute encouraged participation by the public?

     (4) Do the functions of the entity or statute overlap or duplicate the functions of any other

LC001927 - Page 9 of 13

entity or statute?

     (5) What are the objectives of the entity or statute for the next five (5) years?

     22-11.1-5. Advisory commission – Establishment – Purpose -- Membership.

     (a) The permanent joint committee on regulatory oversight is authorized to empanel an

advisory commission composed of voters from this state whose knowledge of law, government,

business, education and economics may assist the committee in accomplishing its goals.

     (b) The commission shall consist of eighteen (18) members: seven (7) of whom shall be

members of the permanent joint committee on regulatory oversight; four (4) of whom shall be

members of the general public to be appointed by the speaker of the house; four (4) of whom

shall be members of the general public to be appointed by the president of the senate; one of

whom shall be that auditor general; one of whom shall be the house fiscal advisor, and one of

whom shall be the senate fiscal advisor.

     (c) The public members shall be appointed for terms of three (3) years except for five (5)

members originally appointed; two (2) shall be appointed for a term of one year and three (3)

shall be appointed for a term of two (2) years.

     (d) The legislative members shall serve a term of two (2) years while in office.

     (e)(1) The commission shall take up any matter of review as directed by the committee:

or

     (2) Upon its own motion and the approval of a majority of its members, take up such

matters for review that it determines based on their experience may assist the committee in

achieving its purpose under this chapter.

     (f) Commission report. The commission shall report to the committee findings and

recommendations of matters brought before it as to the continued public need of governmental

entities created by the general assembly and the impact of any statute, rule or regulation has on

the people of this state and its economy.

     (g) Any vacancy on the commission, occurring for any reason prior to the expiration of

the term, including, but not limited to, termination of active membership in the general assembly,

shall be filled for the unexpired term by the appointing authority in the same manner as the

original appointment.

     (h) Any member of the commission may, for cause, be summarily removed from office

by the appointing authority.

     (i) The members from the general public shall not be compensated for service on the

board, but shall be allowed reasonable expenses in the performance of their official duties.

     (j) The chair of the advisory commission shall be appointed by the senate president and

LC001927 - Page 10 of 13

the vice chair shall be appointed by the speaker of the house.

     22-11.1-6. Entities without expiration date – Statutory construction.

     For the purpose of construing this chapter in determining the expiration date of any

statutory entity, the lack of a specific date for expiration of an entity shall mean that it is the intent

of the general assembly to continue the entity in existence until the general assembly, by specific

legislation, ends the statutory existence of the entity.

     22-11.1-7. Procedure for re-creation.

     (a) The procedure for re-creation of any statute or statutory entity to be terminated under

the provisions of this chapter shall be established by the commission. Those procedures shall

include a zero-base budget review and evaluation by the auditor general as well as any other

procedures which the commission determines are necessary to meet its objectives.

     (b) Each entity shall be notified of its termination date, and that a review by the auditor

general will begin. The entity shall also be notified of all other procedures with which it will be

expected to comply.

     (c) Upon completion of the zero-based budget review and evaluation the office of auditor

general shall transmit its report to the commission. The report shall include, but not be limited to:

     (1) An identification of other entities, or other programs or activities of the state

government, having the same or similar objectives, along with a comparison of the cost and

effectiveness of those entities, programs, or activities and any duplication of the entity under

review;

     (2) An examination of the extent to which the objectives of the entity under review have

been achieved when compared to the objectives initially set forth for the entity under review and

an analysis of any significant variance between projected and actual performance; and

     (3) A statement of the objectives of the entity for the coming four (4) years with the

establishment of measurements of performance where feasible.

     22-11.1-8. Activities by terminated statutory entity.

     Each entity may continue itself in existence for up to one year after scheduled termination

for the purpose of completing its work and activities. During this completion period, termination

shall not reduce or otherwise limit the powers or authority of each entity. Upon the expiration of

one year after termination, each entity shall cease. All unexpended balances of appropriations or

other funds shall revert to the general fund.

     22-11.1-9. Proceedings against statutory entity.

     Nothing in this chapter shall cause any right, claim, or cause of action held by any person

against any entity to be dismissed, nor shall any right, claim, or cause of action held by any entity

LC001927 - Page 11 of 13

which has been terminated pursuant to this chapter lapse because of this chapter.

     22-11.1-10. Legislative action.

     Whenever the general assembly is about to create or re-create any statutory entity it

should, whenever possible, request a report from the commission as set forth in §22-14-7;

however, no report is required to be received by the general assembly for any action to be taken,

and nothing in this chapter shall be construed to prohibit the legislature from terminating an entity

covered by these provisions at a date earlier than that provided in this chapter, nor to prohibit the

legislature from considering any other legislation relative to that entity.

     22-11.1-11. State bonds.

     Notwithstanding any other provisions of this chapter to the contrary, no entity which has

outstanding bonds shall be abolished until and unless provision is made for the payment of

principal and interest of the bonds at or before maturity or for the assumption of the indebtedness

by the state or any agency or subdivision of the state.

     22-11.1-12. Severability.

     If any provisions or item of this chapter or the application of it is held invalid, the

invalidity shall not affect other provisions, items, or applications, and to this end the provisions of

this chapter are declared severable.

     SECTION 5. This act shall take effect January 1, 2018.

========

LC001927

========

LC001927 - Page 12 of 13

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO GENERAL ASSEMBLY -- JOINT COMMITTEE ON REGULATORY

OVERSIGHT

***

     This act would eliminate previous sections of the general laws and require that all

proposed rules and regulations promulgated by state entities be submitted to and approved by the

joint committee on regulatory oversight before becoming effective.

     This act would take effect January 1, 2018.

========

LC001927

========

LC001927 - Page 13 of 13