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A07684
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2102
Session of
2018
INTRODUCED BY RYAN, GROVE, BLOOM, FRITZ, WALSH, DOWLING,
ROTHMAN, CUTLER, BERNSTINE, WARD, FEE, DUSH, KEEFER, SCHEMEL,
EVERETT, COX, B. MILLER, McGINNIS, NELSON, KLUNK, PHILLIPS-
HILL, WHEELAND AND GILLEN, APRIL 18, 2018
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 18, 2018
AN ACT
Amending Title 71 (State Government) of the Pennsylvania
Consolidated Statutes, in boards and offices, establishing
the Department of Business, Tourism and Workforce Development
and transferring specific powers and duties from the
Department of Labor and Industry, the Department of Community
and Economic Development and the Department of State to the
Department of Business, Tourism and Workforce Development.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Part V of Title 71 of the Pennsylvania
Consolidated Statutes is amended by adding a chapter to read:
CHAPTER 45
DEPARTMENT OF BUSINESS, TOURISM
AND WORKFORCE DEVELOPMENT
Subchapter
A. General Provisions
B. Departmental Administration
SUBCHAPTER A
GENERAL PROVISIONS
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Sec.
4501. Scope of chapter.
4502. Definitions.
§ 4501. Scope of chapter.
This chapter relates to the Department of Business, Tourism
and Workforce Development.
§ 4502. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Administrative Code of 1929." The act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929.
"Continuous improvement process system." A management
methodology system that combines tools to improve process speed
and reduce waste with data-driven project analysis to provide
products and services with improved quality at a lower cost. The
term may involve any of the following strategies:
(1) Developing a process map that describes the lean
government principles or another widely accepted business
process improvement system by which an executive agency
engages in specific activities that have the purpose of
increasing efficiency and eliminating waste in the processes
used to deliver goods and services to taxpayers and customers
of this Commonwealth. This strategy includes the measurement
of the outcomes regarding increased efficiency and the
elimination of waste and procedures by which the executive
agency produces goods or serves its customers.
(2) Engaging in specific activities to rapidly improve
an executive agency's processes that will increase value or
decrease staff time, inventory, defects, overproduction,
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complexity, delays or excessive movement.
(3) Involving executive agency employees at all levels
to map the executive agency's processes and recommend
improvements, with specific importance placed on the
involvement of executive agency employees closest to the
customer or end user of the State government product or
service.
(4) Providing the means to measure each process in order
to demonstrate the effectiveness of each process or process
improvement.
(5) Training executive agency employees to mentor and
train other executive agency employees in continuous
improvement process systems.
"Department." The Department of Business, Tourism and
Workforce Development established under section 4511 (relating
to establishment of department).
"Executive agency." Any of the following:
(1) The Governor's Office.
(2) A department, board, commission, authority or other
agency of the Commonwealth that is subject to the policy
supervision and control of the Governor.
(3) The Office of Lieutenant Governor.
(4) An independent department.
(5) An independent agency.
"Executive board." As specified in section 204 of the
Administrative Code of 1929.
"Independent agency." A board, commission, authority or
other agency of the Commonwealth that is not subject to the
policy supervision and control of the Governor. The term does
not include:
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(1) A court or agency of the unified judicial system.
(2) The General Assembly or an agency of the General
Assembly.
"Independent department." Any of the following:
(1) The Department of the Auditor General.
(2) The Treasury Department.
(3) The Office of Attorney General.
(4) A board or commission of an entity under paragraph
(1), (2) or (3).
"Job creator." As the term "entity" is defined in 15 Pa.C.S.
§ 102(a) (relating to definitions).
"Office." The Office of Business Consultant established
under section 4518 (relating to Office of Business Consultant).
"Secretary." The Secretary of Business, Tourism and
Workforce Development.
SUBCHAPTER B
DEPARTMENTAL ADMINISTRATION
Sec.
4511. Establishment of department.
4512. Organization of department.
4513. General duties of department and transfer provisions.
4514. Redesignation.
4515. Civil service status. (Reserved).
4516. Secretary.
4517. Strategic plan.
4518. Office of Business Consultant.
§ 4511. Establishment of department.
The Department of Business, Tourism and Workforce Development
is established as an administrative department within the
executive branch of the government of this Commonwealth.
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§ 4512. Organization of department.
(a) Division of responsibilities.--The department shall be
divided into the following:
(1) The Bureau of Marketing and Tourism.
(2) The Bureau of Licensing.
(3) The Bureau of Safety and Labor-Management Relations.
(4) The Bureau of Occupational and Vocational
Rehabilitation.
(5) The Bureau of Trust Fund Management.
(6) The Bureau of Business Finance and Workforce
Development.
(7) The Office of Business Consultant.
(b) Supervision.--
(1) Each bureau of the department shall be headed by an
executive director appointed by the secretary.
(2) Each executive director shall be under the
supervision of the secretary.
§ 4513. General duties of department and transfer provisions.
(a) Authority.--The department shall exercise the authority
and perform the duties of the following Commonwealth agencies as
specified in this chapter:
(1) The Department of Labor and Industry.
(2) The Department of Community and Economic
Development. The powers and duties transferred from the
Department of Community and Economic Development shall be
limited to a bureau or program which pertains to the
following:
(i) Statewide tax credits and grant programs.
(ii) Job training.
(iii) International business trade, investments and
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development.
(iv) Business and workforce development and the
Pennsylvania Industrial Development Authority.
(v) Marketing and tourism initiatives.
(vi) Technology investments and strategic
partnerships.
(3) The Department of State. The powers and duties
transferred from the Department of State shall be limited to
the following:
(i) The Bureau of Corporations and Charitable
Organizations.
(ii) The Bureau of Professional and Occupational
Affairs.
(iii) Any administrative board or commission under
the Department of State which oversees and issues a
professional or occupational license.
(b) Transfer of powers and duties.--
(1) The powers and duties vested in the Secretary of
Labor and Industry, the Secretary of Community and Economic
Development and the Secretary of the Commonwealth as
specified in this chapter are transferred to the secretary,
who shall exercise the powers and perform the duties that
those secretaries exercised or performed prior to the
effective date of this section. Any reference to the
Secretary of Labor and Industry, the Secretary of Community
and Economic Development or the Secretary of the Commonwealth
under a statute or regulation which was in effect before the
effective date of this section and which concerns the powers
or duties specified in this chapter shall be deemed a
reference to the secretary.
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(2) The following are transferred to the office
department :
(i) All bureaus, organizations and divisions in the
Department of Labor and Industry, the Department of
Community and Economic Development and the Department of
State responsible for the functions specified in this
chapter.
(ii) All personnel, allocations, appropriations,
equipment, files, records, contracts, agreements,
obligations and other materials which are used, employed
or expended by the Department of Labor and Industry, the
Department of Community and Economic Development and the
Department of State in connection with the functions
transferred by this chapter to the department in the
first instance and as if these contracts, agreements and
obligations had been incurred or entered into by the
department.
(c) Apportionment.--The personnel, appropriations, equipment
and other items and material transferred to the department by
this section shall include an appropriate portion of the general
administrative, overhead and supporting personnel,
appropriations, equipment and other material of the Department
of Labor and Industry, the Department of Community and Economic
Development or the Department of State and shall also include,
where applicable, Federal grants and funds and other benefits
from any Federal program.
(d) Status of employees.--All personnel transferred under
this chapter shall retain any civil service employment status
assigned to the personnel.
§ 4514. Redesignation.
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(a) Department of Labor and Industry.--For those powers and
duties transferred under this chapter:
(1) The Department of Labor and Industry shall be known
as the Bureau of Safety and Labor-Management Relations, the
Bureau of Occupation and Vocational Rehabilitation, the
Bureau of Trust Fund Management or the Bureau of Business
Finance and Workforce Development. The following shall apply:
(i) The powers and duties of the Department of Labor
and Industry transferred to the department shall be
divided among the Bureau of Safety and Labor-Management
Relations, the Bureau of Occupational and Vocational
Rehabilitation, the Bureau of Trust Fund Management and
the Bureau of Business Finance and Workforce Development.
(ii) The strategic plan under section 4517 (relating
to strategic plan) shall provide a clear division of the
powers and duties transferred from the Department of
Labor and Industry to the department and the bureaus
specified under this subsection.
(2) A reference to the Department of Labor and Industry
in a statute or regulation shall be deemed a reference to the
department.
(3) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the Department of Labor and Industry department or
any bureau specified in this subsection shall not be affected
by the use of the designation as the department or any bureau
specified in this subsection Department of Labor and
Industry . The Department of Labor and Industry department may
continue to use the name "Department of Labor and Industry"
on badges, licenses, contracts, deeds, stationery and other
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official documents until existing supplies are exhausted. The
Department of Labor and Industry department may substitute
the title "Department of Business, Tourism and Workforce
Development" for "Department of Labor and Industry" on its
documents and materials on a schedule that is deemed
appropriate.
(4) The Department of Labor and Industry department
shall not replace existing signage at its locations with the
redesignated name until the signs are worn and in need of
replacement. This transition shall be coordinated with
changes in administration.
(5) The Department of Labor and Industry department
shall continue to use the name "Department of Labor and
Industry" on its computer systems until the time of routine
upgrades in each computer system in the Department of Labor
and Industry department . The change in name shall be made at
the time of the routine upgrade to the computer systems.
(b) Department of Community and Economic Development.--For
those powers and duties transferred under this chapter:
(1) The Department of Community and Economic Development
shall be known as the Bureau of Business Finance and
Workforce Development or the Bureau of Marketing and Tourism.
The following shall apply:
(i) The powers and duties of the Department of
Community and Economic Development transferred to the
department shall be divided between the Bureau of
Business Finance and Workforce Development and the Bureau
of Marketing and Tourism.
(ii) The strategic plan under section 4517 shall
provide a clear division of the powers and duties
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transferred from the Department of Community and Economic
Development to the department and the bureaus specified
under this subsection.
(2) A reference to the Department of Community and
Economic Development in a statute or regulation shall be
deemed a reference to the department.
(3) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the Department of Community and Economic
Development department or any bureau specified in this
subsection shall not be affected by the use of the
designation as the department or any bureau specified in this
subsection Department of Community and Economic Development .
The Department of Community and Economic Development
department may continue to use the name "Department of
Community and Economic Development" on badges, licenses,
contracts, deeds, stationery and other official documents
until existing supplies are exhausted. The Department of
Community and Economic Development department may substitute
the title "Department of Business, Tourism and Workforce
Development" for "Department of Community and Economic
Development" on its documents and materials on a schedule
that is deemed appropriate.
(4) The Department of Community and Economic Development
department shall not replace existing signage at its
locations with the redesignated name until the signs are worn
and in need of replacement. This transition shall be
coordinated with changes in administration.
(5) The Department of Community and Economic Development
department shall continue to use the name "Department of
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Community and Economic Development" on its computer systems
until the time of routine upgrades in each computer system in
the Department of Community and Economic Development
department . The change in name shall be made at the time of
the routine upgrade to the computer systems.
(c) Department of State.--For those powers and duties
transferred under this chapter:
(1) The Department of State shall be known as the Bureau
of Licensing.
(2) A reference to the Department of State in a statute
or regulation shall be deemed a reference to the department.
(3) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the Department of State department or Bureau of
Licensing shall not be affected by the use of the designation
as the department or Bureau of Licensing Department of State .
The Department of State department may continue to use the
name "Department of State" on badges, licenses, contracts,
deeds, stationery and other official documents until existing
supplies are exhausted. The Department of State department
may substitute the title "Department of Business, Tourism and
Workforce Development" for "Department of State," for those
responsibilities and duties involving licensing, on its
documents and materials on a schedule that is deemed
appropriate.
(4) The Department of State department shall not replace
existing signage at its locations with the redesignated name
until the signs are worn and in need of replacement. This
transition shall be coordinated with changes in
administration.
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(5) The Department of State department shall continue to
use the name "Department of State" on its computer systems
until the time of routine upgrades in each computer system in
the Department of State department . The change in name shall
be made at the time of the routine upgrade to the computer
systems.
§ 4515. Civil service status.
All positions in the department shall be deemed to be
included in the list of positions under section 3(d) of the act
of August 5, 1941 (P.L.752, No.286), known as the Civil Service
Act, and the provisions and benefits of that act shall apply to
the employees of and positions in the department. (Reserved).
§ 4516. Secretary.
(a) Nomination.--No later than 30 days after the submittal
of the strategic plan under section 4517 (relating to strategic
plan), the Governor shall nominate an individual to serve as
acting secretary until the individual or another individual is
confirmed as secretary by the Senate under section 8 of Article
IV of the Constitution of Pennsylvania. The acting secretary
shall have the same authority as the secretary.
(b) Appointments.--The secretary shall appoint the deputy
secretary of each of the bureaus within the department deputy
secretaries . Each deputy secretary shall possess appropriate
qualifications to serve in that capacity.
(c) Salary.--The annual salary of the secretary shall be
$166,000 or at a higher level as established by the Governor
with the approval of the executive board.
§ 4517. Strategic plan.
(a) Development.--Within 60 days of the effective date of
this section, the Governor shall:
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(1) subject to subsection (b), contract with a qualified
third party to develop a strategic plan under this section;
or
(2) execute a memorandum of understanding with the Joint
State Government Commission to develop a strategic plan under
this section.
( b) Third-party contract.--The Governor may enter into a
contract with a qualified third-party organization under this
section if the organization:
(1) has experience with large corporate mergers of a
company which has more than 500 employees;
(2) has experience assisting in the merging of
government agencies in other states; and
(3) utilizes continuous improvement process systems to
strengthen the efficiency and delivery of service of agencies
or corporations undergoing a merger.
(c) Parameters.--The strategic plan under this section shall
detail the merger of the Department of Labor and Industry, the
Department of Community and Economic Development and the
Department of State, in accordance with the provisions of this
chapter, and shall provide for:
(1) A 20% reduction in administrative costs.
(2) The identification and consolidation of:
(i) redundant programs administered by the
Department of Labor and Industry, the Department of
Community and Economic Development and the Department of
State, whose functions are transferred to the department;
and
(ii) redundant regulations promulgated by Department
of Labor and Industry, the Department of Community and
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Economic Development and the Department of State, whose
functions are transferred to the department.
(3) Strategies to improve job training and economic
development in this Commonwealth.
(4) Strategies to improve and assist in compliance for
the regulations promulgated by the Department of Labor and
Industry, the Department of Community and Economic
Development and the Department of State prior to the
effective date of this section.
(5) The consolidation of business-rated permitting from
every other executive agency under the department.
(5) The identification of options for consolidating the
administration of business-related permitting under the
department.
(6) The development of clear management directives for
workforce development and business-related tax credits.
(7) The detailed development of an online portal for
tracking the status of permit applications for agencies under
the Governor's jurisdiction.
(8) The apportionment of personnel, appropriations,
equipment and other items and material transferred to the
department under section 4513(c) (relating to general duties
of department and transfer provisions).
(d) Submittal.--No later than 210 days after the effective
date of this section, the strategic plan under this section
shall be submitted to the General Assembly for review and any
hearings deemed necessary.
§ 4518. Office of Business Consultant.
(a) Establishment.--The Office of Business Consultant is
established within the department.
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(b) Executive director.--The office shall be headed by an
executive director who shall be appointed by the secretary and
who shall report to the secretary.
(c) Support services.--The department shall provide all
support services and staff for the office.
(d) Powers and duties.--The office shall:
(1) Assist job creators in complying with regulations
promulgated by the department or an executive agency.
(2) Assist job creators in complying with the
requirements for the application process for a permit of an
executive agency.
(3) Assist job creators, upon request, with any site
development for a corporation which chooses to expand or
locates operations in this Commonwealth.
(4) Develop strategies and relationships to attract
corporations job creators to locate operations in this
Commonwealth.
(5) Assist residents of this Commonwealth as much as
practicable in the formation of new small business
opportunities.
(e) Cooperation by executive agencies.--
(1) All executive agencies shall cooperate with the
office.
(2) Executive agency heads shall identify key staff to
form business compliance teams. The following shall apply:
(i) Each compliance team shall work with the office
to assist corporations in complying with regulations
promulgated by the executive agency.
(ii) Each compliance team shall work with the office
to assist corporations in complying with rules and
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requirements of the executive agency for the application
for a permit required to conduct business activities
overseen by the executive agency.
Section 2. All acts or parts of acts are repealed insofar as
they are inconsistent with this act.
Section 3. Except as otherwise provided in 71 Pa.C.S. Ch.
45, all activities regarding the powers and duties under 71
Pa.C.S. Ch. 45 which were initiated under the Department of
Labor and Industry, the Department of Community and Economic
Development or the Department of State shall continue and remain
in full force and effect and may be completed under 71 Pa.C.S.
Ch. 45. Orders, regulations, rules and decisions which were made
under the authority of the Department of Labor and Industry, the
Department of Community and Economic Development or the
Department of State regarding the powers and duties under 71
Pa.C.S. Ch. 45 and which are in effect on the effective date of
71 Pa.C.S. Ch. 45 shall remain in full force and effect until
revoked, vacated or modified under 71 Pa.C.S. Ch. 45. Contracts,
obligations and collective bargaining agreements entered into
under the authority of the Department of Labor and Industry, the
Department of Community and Economic Development or the
Department of State are not affected nor impaired by the
transfer of powers and duties under 71 Pa.C.S. Ch. 45.
Section 4. Any expenditures needed to implement this act
shall be paid using encumbered funds of the respective executive
agency.
Section 5. Within 10 days of the nomination or confirmation
under 71 Pa.C.S. § 4516(a), the Secretary of the Commonwealth
shall provide notice of the nomination or confirmation to the
Legislative Reference Bureau, which shall publish the notice in
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the Pennsylvania Bulletin.
Section 6. This act shall take effect as follows:
(1) The following shall take effect immediately:
(i) This section and section 5 of this act.
(ii) The addition of 71 Pa.C.S. §§ 4501, 4502, 4516
and 4517.
(2) The remainder of this act shall take effect 30 days
after publication in the Pennsylvania Bulletin of the notice
under section 5 of this act.
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