Chapter 489
2013 -- S 1048
Enacted 07/17/13
A N A C T
RELATING TO
STATE AFFAIRS AND GOVERNMENT -- EXECUTIVE OFFICE OF
COMMERCE
Introduced By: Senator Ryan W. Pearson
Date Introduced: July 03, 2013
It is enacted by the General
Assembly as follows:
SECTION 1. Title 42 of the General Laws entitled "STATE
AFFAIRS AND
GOVERNMENT" is hereby
amended by adding thereto the following chapter:
CHAPTER
6.1
GOVERNOR'S
COMMERCE AND WORKFORCE COORDINATION CABINET
42-6.1-1.
Creation -- Members. -- 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, and the executive
director of
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
workforce and ensure the consistent implementation of the
economic development policy and
strategic plan developed in accordance with section 42-64.15.
SECTION 2. Sections 42-64.13-3, 42-64.13-5 and 42-64.13-6 of
the General Laws in
Chapter 42-64.13 entitled
"Rhode Island Regulatory Reform Act" are hereby amended to read as
follows:
42-64.13-3.
Purposes of chapter. -- The purposes of this chapter are to create
within the
office of management and budget
regulatory reform that will facilitate the regular review of
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
42-64.13-5.
Creation of the office of regulatory reform. --
The office of management
and budget
that shall be adequately staffed and supervised in order
to fulfill its functions as set forth in this
chapter.
42-64.13-6.
Director of office of regulatory reform. -- The
office of regulatory reform
shall be managed by a director of office of regulatory
reform who shall report to the director of
the office of management and budget the secretary of commerce within the
executive office of commerce.
SECTION 3. Title 42 of the General Laws entitled "STATE
AFFAIRS AND
GOVERNMENT" is hereby
amended by adding thereto the following chapter:
CHAPTER
64.19
EXECUTIVE
OFFICE OF COMMERCE
42-64.19-1.
Statement of intent. -- The purpose of this
chapter is to develop an
integrated system of economic development activities while
preserving and protecting the safety
and quality of life for the citizens of
Rhode Island economy, and ensure the efficient use of
all available resources by the
departments/divisions responsible for the regulation of growth within the
state and the provision
of labor and training programs serving all Rhode
Islanders, and to provide and promote and
encourage the preservation, expansion and sound development of
new and existing industry,
business, commerce, agriculture, tourism, recreational, and
renewable energy facilities,
promoting thereby the economic development of the state and the
general welfare of its citizens
and to meet this need while continuing to build on the
achievements that have already been made.
The interests of all Rhode Islanders will best be
served by codifying in the state's general laws the
purposes and responsibilities of the executive office of commerce
and the position of secretary of
commerce.
42-64.19-2.
Purposes. -- The
created, and established as the state's lead agency for
economic development throughout Rhode
Island for the following purposes: To promote and
encourage the preservation, expansion, and
sound development of new and existing industry, business,
commerce, agriculture, tourism, and
recreational facilities in the state, which will promote the
economic development of the state and
the creation of opportunities for economic stability and
employment through a business climate
that fosters opportunity for all Rhode Islanders.
42-64.19-3.
Executive office of commerce. -- (a) There is
hereby established within the
executive branch of state government an executive office of
commerce effective February 1,
2015, to serve as the principal agency of the
executive branch of state government for managing
the promotion of commerce and the economy within the
state and shall have the following
powers and duties in accordance with the following schedule:
(1) On or about
February 1, 2015, to operate functions from the department of business
regulation;
(2) On or about April
1, 2015, to operate various divisions and functions from the
department of administration;
(3) On or before
September 1, 2015, to provide to the Senate and the House of
Representatives a comprehensive study and review of
the roles, functions, and programs of the
Department of Administration and the Department of
Labor and Training to devise
recommendations and a business plan for the integration of these
entities with the office of the
secretary of commerce. The governor may include such recommendations
in the Fiscal Year 2017
budget proposal.
(b) In this capacity,
the office shall:
(1) Lead or assist
state departments and coordinate business permitting processes in order
to:
(i)
Improve the economy, efficiency, coordination, and quality of the business
climate in
the state;
(ii) Design
strategies and implement best practices that foster economic development and
growth of the state's economy;
(iii)
Maximize and leverage funds from all available public and private sources,
including
federal financial participation, grants and awards;
(iv)
Increase public confidence by conducting customer centric
operations whereby
commercial enterprise are supported and provided programs and
services that will grow and
nurture the
(v) Be the state's
lead agency for economic development.
(c) The office shall
include the office of regulatory reform and other administration
functions which promote, enhance or regulate various service
and functions in order to promote
the reform and improvement of the regulatory function of
the state.
42-64.19-4.
Secretary of commerce -- Appointment. -- The
executive office of
commerce shall be administered by a secretary of commerce,
hereafter referred to as "secretary."
The position of secretary is hereby created in the
unclassified service. The secretary shall be
appointed by the governor with the advice and consent of the
senate. The secretary shall hold
office at the pleasure of the governor and until a successor
is appointed and qualified. Before
entering upon the discharge of duties, the secretary shall
take an oath to faithfully execute the
duties of the office. The secretary shall be appointed by February
1, 2015.
42-64.19-5.
Responsibilities of the secretary. -- (a) The secretary shall be responsible to
the governor for supervising the executive office of
commerce, improving the functions and
operations of
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
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; 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.
42-64.19-6.
Duties of the secretary. -- The secretary shall
be subject to the direction and
supervision of the governor for the oversight, coordination and
cohesive direction of state
economic development activities of the state and in ensuring
the laws are faithfully executed,
notwithstanding any law to the contrary. In this capacity, the
secretary of commerce shall be
authorized to:
(1) Coordinate the
administration and financing of various departments or divisions
within the office and to supervise the work of the
(2) Serve as the
governor's chief advisor and liaison to federal policymakers on economic
development as well as the principal point of contact in the
state on any such related matters.
(3) Review and ensure
the coordination of the development of an overarching economic
development plan as produced by the office.
(4) Receive from
department directors, within the timelines specified, any information
and resources the secretary deems necessary in order to
perform the reviews authorized in this
section;
(5) Engage in
regulatory reform across all state agencies to protect the health and
wellbeing of Rhode Islanders while meeting business needs for a
clear, predictable, and reliable
regulatory structure in the state; including the implementation
of systems to enhance customer
service by simplifying and expediting state permitting
processes.
(6) Prepare and
submit to the governor, the chairpersons of the house and senate finance
committees, and the caseload estimating conference, by no later
than April 15 of each year, a
comprehensive overview of the
contents of the overview and shall determine the important
economic data and information that
will inform the governor, and the revenue estimating
committee on the economic conditions of
the state and future issues and forward looking projects
of the
(7) The directors of
the departments, as well as local governments and school
departments, shall assist and cooperate with the secretary in
fulfilling this responsibility by
providing whatever information and support shall be necessary.
(8) Resolve
administrative, jurisdictional, operational, program, or policy conflicts
among departments and their executive staffs and make
necessary recommendations to the
governor.
(9) Assure continued
progress toward improving the quality, the accountability, and the
efficiency of state-administered programs to support the
the secretary shall:
(i)
Direct implementation of reforms in the economic development practices of the
departments that streamline and upgrade services, achieve greater
economies of scale and
establish the coordinated system of the staff education, cross-
training, and career development
services necessary to recruit and retain a highly-skilled,
responsive, and engaged workforce;
(ii) Encourage
departments to utilize consumer-centered approaches to service design and
delivery that expand their capacity to respond efficiently and
responsibly to the diverse and
changing needs of the people and communities they serve;
(iii) Develop all
opportunities to maximize resources by leveraging the state's purchasing
power, centralizing fiscal service functions related to
budget, finance, and procurement,
centralizing communication, policy analysis and planning, and information
systems and data
management, pursuing alternative funding sources through grants,
awards and partnerships and
securing all available federal financial participation for
programs and services provided through
the departments; and
(iv)
Strengthen the financial support system for business and
enterprises program
integrity, quality control and collections, and recovery
activities by consolidating functions within
the office in a single unit that ensures all affected
parties pay their fair share of the cost of
services and are aware of alternative financing.
(10) Prepare and
integrate comprehensive budgets for the commerce services departments
and functions and duties assigned to the office. The budgets
shall be submitted to the state budget
office by the secretary, for consideration by the governor,
on behalf of the state's commerce
agencies in accordance with the provisions set forth in
section 35-3-4 of the
laws.
(11) Utilize
objective data to evaluate economic development policy goals, resource use
and outcome evaluation and to perform short and long-term
policy planning and development.
(12) Establishment of
an integrated approach to interdepartmental information and data
management that complements and furthers the goals of the
council of economic advisors and
that will facilitate the transition to consumer-centered
system of state administered economic
development programs and services.
(13) At the direction
of the governor or the general assembly, conduct independent
reviews of state-administered economic development programs,
policies and related agency
actions and activities and assist the department directors in
identifying strategies to address any
issues or areas of concern that may emerge thereof. The
department directors shall provide any
information and assistance deemed necessary by the secretary when
undertaking such
independent reviews.
(14) Provide regular
and timely reports to the governor and make recommendations with
respect to the state's economic development agenda.
(15) Employ such
personnel and contract for such consulting services as may be required
to perform the powers and duties lawfully conferred upon
the secretary.
(16) Implement the
provisions of any general or public law or regulation related to the
disclosure, confidentiality and privacy of any information or
records, in the possession or under
the control of the executive office or the departments
assigned to the executive office, that may be
developed or acquired for purposes directly connected with the
secretary's duties set forth herein.
42-64.19-7.
Departments/divisions assigned to the executive office -- Powers and
duties. -- (a)
The departments and/or divisions assigned to the
secretary shall:
(1) Exercise their
respective powers and duties in accordance with their statutory
authority and the general policy established by the governor or
by the secretary acting on behalf
of the governor or in accordance with the powers and
authorities conferred upon the secretary by
this chapter;
(2) Provide such
assistance or resources as may be requested or required by the governor
and/or the secretary; and
(3) Provide such records
and information as may be requested or required by the
governor and/or the secretary to the extent allowed under the
provisions of any applicable general
or public law, regulation, or agreement relating to the
confidentiality, privacy or disclosure of
such records or information.
(4) Forward to the
secretary copies of all reports to the governor.
(b) Except as
provided herein, no provision of this chapter or application thereof shall be
construed to limit or otherwise restrict the departments,
offices, or divisions assigned to the
secretary from fulfilling any statutory requirement or
complying with any valid rule or regulation.
(c) The secretary
shall determine in collaboration with the department directors whether
the officers, employees, agencies, advisory councils,
committees, commissions, and task forces of
the departments who were performing such functions shall
be transferred to the office.
(d) In the
transference of such functions, the secretary shall be responsible for
ensuring:
(1) Minimal
disruption of services to consumers;
(2) Elimination of
duplication of functions and operations;
(3) Services are
coordinated and functions are consolidated where appropriate;
(4) Clear lines of
authority are delineated and followed;
(5) Cost savings are
achieved whenever feasible;
(6) Program
application and eligibility determination processes are coordinated and,
where feasible, integrated; and
(7) State and federal
funds available to the office and the entities therein are allocated and
utilized for service delivery to the fullest extent possible.
(e) Except as
provided herein, no provision of this chapter or application thereof shall be
construed to limit or otherwise restrict the departments under
this section from fulfilling any
statutory requirement or complying with any regulation deemed
otherwise valid.
(f) To ensure an orderly
transfer of functions to the office of commerce the following
transition shall occur at the direction of the governor,
secretary of commerce and the respective
directors of the department affected.
(g) On or about
February 1, 2015, the office shall commence to operate all functions
currently assigned to the department of business regulation
(DBR)
(h) On or about April
1, 2015, the office shall commence to operate the regulatory reform
and housing/community development functions currently
assigned to the department of
administration.
(i)
In addition to the requirements of RIGL section 35-3-7, budgets submitted by
the
impacted state departments for state fiscal years 2015 and
2016 shall include provisions to
implement this section.
42-64.19-8.
Appointment of employees. -- The secretary,
subject to the provisions of
applicable state law, shall be the appointing authority for all
employees of the executive office of
commerce. The secretary may assign this function to such subordinate
officers and employees of
the executive office as may to him or her seem feasible
or desirable. The appointing authority of
the secretary provided for herein shall not affect,
interfere with, limit, or otherwise restrict the
appointing authority vested in the directors for the employees
of the departments under applicable
general and public laws.
42-64.19-9.
Appropriations and disbursements. -- The
general assembly shall annually
appropriate such sums as it may deem necessary for the purpose of
carrying out the provisions of
this chapter. The state controller is hereby authorized
and directed to draw his or her orders upon
the general treasurer for the payment of such sum or
sums, or so much thereof as may from time
to time be required, upon receipt by him or her of
proper authenticated vouchers approved by the
secretary of the executive office of commerce, or his or her
designee.
42-64.19-10.
Rules and regulations. -- The executive office
of commerce shall be
deemed an agency for purposes of section 42-35-1, et seq. of
the
secretary shall make and promulgate such rules and regulations,
fee schedules not inconsistent
with state law and fiscal policies and procedures as he or
she deems necessary for the proper
administration of this chapter and to carry out the policy and
purposes thereof.
42-64.19-11.
Severability. -- If any provision of this
chapter or the application thereof to
any person or circumstance is held invalid, such invalidity
shall not affect other provisions or
applications of the chapter, which can be given effect without the
invalid provision or application,
and to this end the provisions of this chapter are
declared to be severable.
42-64.19-12.
Cooperation of other state executive branch agencies. --
As may be
appropriate from time to time, the departments and other agencies
of the state of the executive
branch that have not been assigned to the executive office
of commerce under this chapter shall
assist and cooperate with the executive office as may be
required by the governor requested by
the secretary.
SECTION 4. Sections 42-102-2, 42-102-3 and 42-102-6 of the
General Laws in Chapter
42-102 entitled "Rhode
Island Human Resource Investment Council" are hereby amended to read
as follows:
42-102-2.
Composition of council. -- (a) Effective until
January 1, 2005, the council
shall be composed of twenty-seven (27) members of whom no
less than one-third (1/3) shall be
women as follows:
(1) One shall be
appointed by the governor from the nongovernmental sector to serve as
chairperson of the council;
(2) Eight (8) shall
be appointed by the governor from the employer community, two (2)
of whom shall be from the nonprofit sector, and at least
two (2) of whom must be women from
the following employer groups:
(i)
Two (2) from companies with fewer than twenty-five (25) employees;
(ii)
Two (2) from companies with twenty-five (25) to two hundred fifty (250)
employees;
(iii)
Two (2) from companies with more than two hundred fifty (250) employees; and
(iv)
Two (2) from minority-owned companies;
(3) Three (3)
members from organized labor shall be appointed by the governor;
(4) One member from
a community-based organization representing minorities shall be
appointed by the governor;
(5) One individual
who serves as the chairperson of the governor's commission on
disabilities;
(6) Six (6)
individuals shall serve on the council by virtue of their respective positions
as
chairpersons of the following organizations:
(i) Three (3) individuals, who serve as chairpersons
of their respective private industry
councils;
(ii) One individual
who serves as chairperson of the
council; and
(iii) One individual
who serves as chairperson of the pathways to independence advisory
council;
(7) The president of
the senate and the speaker of the house shall appoint one individual
each from their respective chambers to become members of
the council;
(8) The directors or
commissioners of the following four (4) departments and
corporation shall serve on the council: employment and training,
development corporation, human services, elementary and secondary
education, and higher
education;
(9) The executive
director of the
the council; and
(10) Any individual
serving on the council as of June 1, 2004 shall remain on the council
until the new members are appointed and confirmed by the
senate.
(b) Effective January
1, 2005, the The council shall be composed
of fifteen (15)
members, the secretary of commerce, who shall be
vice-chair, thirteen (13) twelve (12) members
appointed by the governor, with the advice and consent of the
senate, at least four (4) of whom
shall be women, at least three (3) of whom shall be from
minority communities, and at least one
of whom shall be a person with disabilities, as follows:
(1) One shall be
appointed by the governor to serve as chairperson of the council;
(2) Six (6) Five
(5) shall be appointed by the governor from the employer community, in
a manner that is representative of employers of
different sizes and sectors, including the nonprofit
sector; provided, however, that in the event that there is
established a state workforce investment
board that is separate and distinct from the council, then
one of the six (6) five (5) representatives
of the employer community shall be the chairperson of
the state work force investment board, and
if all employer community appointments have been duly
made and are filled, then the appointed
chairperson of the state workforce investment board shall be made
with the next available
appointment of a representative of the employer community;
(3) Four (4) members
from organized labor shall be appointed by the governor;
(4) Two (2) members
from community-based organizations shall be appointed by the
governor;
(5) The president of
the senate and the speaker of the house shall appoint one individual
each from their respective chambers to be members of the
council.
(c) Transitional
Provisions. - The council as provided for in subsection (b) shall assume
the powers, duties and responsibilities set forth in this
chapter, and the council as provided for in
subsection (a) shall be terminated, and shall cease to exist and
all the powers, duties, and
responsibilities of the council as provided for in subsection (a)
shall be transferred to the council
as provided in subsection (b); the governor may appoint
persons serving on the council as
provided for in subsection (a) to the council as provided for
in subsection (b), as provided for in
section 42-102-4(a), and may appoint an interim executive
director who shall serve until such
time as an executive director is appointed in accordance
with section 42-102-3(b). All rules,
regulations, decisions, actions, and approvals taken by the
council as provided in subsection (a)
shall remain in full force and effect until superseded,
amended, revised, or rescinded by the
council as provided for in subsection (b). The present
council will continue its duties and
responsibilities until the new members of the council are appointed
and a number sufficient to
satisfy a quorum are confirmed by the senate.
42-102-3.
Officers. -- (a) The
position of chairperson shall be unpaid and the individual
that is appointed chairperson shall serve a three (3) year
term. The governor may reappoint the
individual appointed chairperson to serve another three (3) year
term. The council shall elect from
its own members a vice-chairperson, who is authorized to
preside over meetings in the absence of
the chairperson.
(b) The secretary of
commerce shall be vice-chair, and is authorized to preside over
meetings in the absence of the chairperson.
(b)(c)
Executive director. - The council, in consultation with the governor, shall
appoint
an executive director who shall serve at the pleasure of
the council, provided that the executive
director's initial engagement by the council shall be for a
period of not more than three (3) years.
The position of executive director shall be in the
unclassified service of the state and he or she
shall serve as the chief executive officer of the council.
42-102-6.
Duties. -- (a) The
council shall meet with other entities involved with
vocational education, labor, and training and shall be
responsible for the planning of labor and
training activities to ensure that a comprehensive and
cohesive plan is developed. The council
shall take into consideration the needs of all segments of
the state's citizenry in establishing goals
and training objectives.
(b) The council shall
establish policy to ensure the effectiveness and efficiency of
programs and activities as they pertain to labor and training,
including the workforce needs of
state employers.
(c) The council shall
provide funding for special projects that will increase and improve
the skill base of
information from the
needs. In addition, the council shall have the following
responsibilities:
(1) Prepare and submit
by September 1, 1992 and thereafter annually, a proposed budget
for the ensuing year for the governor's approval;
(2) The auditor general
shall conduct annual audits of all financial accounts and any
other audits that he or she shall deem necessary.
(3) Ensure that, for
those contracts or grants characterized as training or upgrading, the
administrative expenses of the private or public entity awarded the
contract or grant shall not
exceed fifteen percent (15%) of the total contract or grant.
(4) Receive any gifts,
grants, or donations made and to disburse and administer them in
accordance with the terms thereof; and
(5) Allocate moneys
from the job development fund for projects to implement the
recommendations of the council, including, but not limited to,
technology transfers or technical
assistance to manufacturers to improve their operations through
the use of appropriate
technologies; provided, that for fiscal year 2005, a minimum of
three million four hundred
thousand dollars ($3,400,000) from the job development fund
shall be allocated for adult literacy
programs.
(6) Within ninety (90)
days after the end of each fiscal year, the council shall approve
and submit an annual report to the governor, the speaker
of the house, the president of the senate,
and the secretary of state, of its activities during the
fiscal year. The report shall provide: an
operating statement summarizing meetings or hearings held,
meeting minutes if requested,
subjects addressed, decisions rendered, rules and regulations
promulgated, studies conducted,
policies and plans developed, approved or modified, and
programs administered or initiated; a
consolidated financial statement of all funds received and
expended including the source of funds,
a listing of any staff supported by these funds, and a
summary of clerical, administrative,
professional or technical reports 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 authority of
the council; a summary of any
training courses held pursuant to subsection 42-102-2(c); a
briefing on anticipated activities in the
upcoming fiscal year; and findings and recommendations for
improvement. The report, within
thirty (30) days of its completion, shall be posted
electronically on the general assembly and
secretary of state's websites. The director of the department of
administration shall be responsible
for the enforcement of this provision.
SECTION 5. Section
1 of this act shall take effect upon passage. Sections 2, 3, and 4
shall take effect on February 1, 2015.
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LC02968
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