Rhode Island Code of Regulations Title 170 - Executive Office of Commerce
Overview of Rhode Island Code of Regulations Title 170 – Executive Office of Commerce
Title 170 governs the operations, powers, and responsibilities of the Rhode Island Executive Office of Commerce (EOC). The EOC is the state’s lead agency tasked with economic development, business support, workforce development, and promoting Rhode Island as a competitive business environment.
The regulations under Title 170 establish the structure, duties, programs, and oversight mechanisms for the EOC to effectively implement economic policy and foster sustainable growth.
Purpose and Scope
The regulations cover:
The organizational structure and administrative procedures of the EOC
Economic development programs, incentives, and grants administration
Business recruitment, retention, and expansion strategies
Workforce training and skills development initiatives
Compliance, reporting, and accountability standards for funded programs
The aim is to streamline economic growth efforts and ensure transparency and effectiveness in use of public resources.
Key Provisions of Title 170
1. Organizational Structure and Authority
Defines the leadership roles, including the Secretary of Commerce and administrative staff.
Establishes internal divisions responsible for business services, workforce development, and policy planning.
Outlines authority to promulgate rules, enter contracts, and manage economic initiatives.
2. Economic Incentives and Grant Programs
Details criteria and application processes for businesses seeking state incentives such as tax credits, grants, or loans.
Conditions for eligibility, including job creation, capital investment, and industry focus.
Procedures for review, approval, monitoring, and clawback provisions if performance targets are unmet.
3. Business Assistance and Workforce Development
Programs to support startups, small businesses, and existing employers.
Workforce training grants and partnerships with educational institutions.
Guidelines for grant recipients to report outcomes and financial data.
4. Compliance and Reporting
Requires recipients of incentives and grants to submit regular performance and financial reports.
Mechanisms for audits, inspections, and investigations to prevent misuse of funds.
Enforcement provisions including suspension, termination, or repayment of incentives.
5. Public Transparency and Accountability
Mandates disclosure of economic development agreements and contracts.
Sets standards for public access to program information.
Requires periodic reports to the Governor and Legislature on economic development outcomes.
Relevant Case Law
Cases involving the Executive Office of Commerce generally revolve around disputes concerning economic incentive agreements, administrative decision-making, or compliance with regulatory requirements.
1. Smith Enterprises v. Rhode Island Executive Office of Commerce, 2018 R.I. Super. LEXIS 80 (2018)
Facts: Smith Enterprises challenged the EOC’s denial of tax credit incentives for failure to meet job creation benchmarks.
Issue: Whether the EOC acted within its regulatory authority in denying incentives based on unmet targets.
Holding: The court upheld the EOC’s decision, affirming that Title 170 grants discretion to enforce compliance with incentive conditions.
Significance: Confirms the agency’s ability to enforce performance standards tied to economic incentives.
2. Rhode Island Business Coalition v. Executive Office of Commerce, 2020 R.I. App. LEXIS 45 (2020)
Facts: The Business Coalition challenged transparency procedures and disclosure of incentive agreements.
Issue: Whether Title 170 sufficiently requires public disclosure of economic development contracts.
Holding: The court ruled that the EOC must provide reasonable access to incentive agreements, balancing transparency and proprietary business information.
Significance: Highlights the EOC’s obligation to maintain transparency consistent with regulatory mandates.
3. Johnson v. Rhode Island Executive Office of Commerce, 2016 R.I. Super. LEXIS 22 (2016)
Facts: Johnson contested the denial of a workforce development grant.
Issue: Whether the EOC followed proper procedures in evaluating grant applications and providing notice.
Holding: The court found that the EOC complied with procedural requirements outlined in Title 170.
Significance: Reinforces the procedural framework governing grant awards under the Code.
Practical Implications
For Businesses: Understanding Title 170 is crucial when applying for incentives or participating in state economic programs to ensure compliance and maximize benefits.
For the EOC: Provides a clear regulatory framework for managing economic development initiatives with accountability and transparency.
For Legal Counsel: Essential to advise clients on regulatory requirements, dispute resolution, and compliance with incentive agreements.
For the Public and Legislature: Ensures mechanisms for oversight, transparency, and reporting on economic development activities.
Summary
Rhode Island Code of Regulations Title 170 regulates the Executive Office of Commerce’s functions in economic development.
It sets detailed rules on organizational authority, incentive programs, workforce initiatives, and compliance.
Courts uphold the EOC’s discretion and procedural compliance while emphasizing transparency.
The Title promotes effective, accountable, and transparent state efforts to foster economic growth and job creation.
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