2019 -- H 5636

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- LEAN GOVERNMENT

INITIATIVE ACT

     

     Introduced By: Representatives Solomon, O'Brien, Phillips, Jackson, and Vella-
Wilkinson

     Date Introduced: February 27, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 35-1.1-1, 35-1.1-2 and 35-1.1-4 of the General Laws in Chapter

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35-1.1 entitled "Office of Management and Budget" are hereby amended to read as follows:

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     35-1.1-1. Statement of intent.

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     The purpose of this chapter is to establish a comprehensive public finance and

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management system for the State of Rhode Island that manages a data-driven budget process,

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monitors state departments' and agencies' performance, maximizes the application for and use of

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federal grants and ensures accountability and transparency regarding the use of public funds, and

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to ensure the implementation of Lean government initiative tools and enterprises as a component

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

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and agencies.

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

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     (a) There is hereby established within the department of administration an office of

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management and budget. This office shall serve as the principal agency of the executive branch of

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state government for managing budgetary functions, performance management, internal audit,

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and federal grants management. In this 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) Be responsible for the internal audit function of state government and conduct audits

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of any state department, state agency, or private entity that is a recipient of state funding or state

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grants; 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.

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     (b) With respect to the Lean government initiative (hereinafter "Lean"), the office of

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management and budget shall:

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

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integration into state governance and operational systems.

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

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

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of integrating continuous improvement into the organizational culture.

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

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     (4) Communicate with department and agency directors, boards, commissions, and senior

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

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improve agency results.

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

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implement departmental Lean programs.

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

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

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missions.

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

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     (8) Continuously evaluate organizational performance in meeting objectives, identify and

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

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justify critical and far-reaching changes.

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

 

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accomplishments.

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

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stakeholders, and other members of the public to demonstrate its benefits and returns on

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investment.

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

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

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changes in overall direction.

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

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related changes which have a direct impact over their implementation.

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

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

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implementation of Lean tools and enterprises in state government.

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

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understanding of Lean work in state government.

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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.

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     (a) The offices assigned to the office of management and budget include the budget

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office, the performance management office, office of internal audit, and the federal grants

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

 

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

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

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

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time than more traditional systems.

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

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

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context of Lean analysis, in their processes.

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

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

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outcomes.

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

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     (1) Eliminating or drastically reducing backlog;

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     (2) Reducing lead times;

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     (3) Simplifying processes;

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

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

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     (6) Improving staff morale and process transparency.

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

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

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

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

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     42-64.13-8.1. Lean government initiative progress reporting.

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     (a) No later than January 1, 2020, each department, agency, board, or commission,

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subject to the Lean government initiative under chapter 1.1 of title 35, shall submit to the director

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of the office of management and budget identifying processes within their department which they

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wish to be self-reviewed and guide the self-implementation of process improvement programs.

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This report shall propose a time deadline for completion of the self-review and proposed self-

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implementation of process improvement programs.

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     (b) Beginning July 1, 2020 and each year thereafter, the office of management and budget

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

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

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by this chapter.

 

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     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, through the office of management and budget, implement the provisions

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of the Lean government initiative, which has been adopted in the private business community and

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governments throughout the country, to eliminate waste and inefficiency in the operation of state

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government. It would also include a mandatory yearly progress reporting requirement by the

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departments, agencies, boards and commissions subject to the Lean government initiative.

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     This act would take effect upon passage.

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