72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3800
 
                         Senate Bill 947
 
Sponsored by Senators SCHRADER, MORSE
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Directs Joint Legislative Audit Committee to retain consultants
to make recommendations on decreasing costs and increasing
quality of services provided by state and local agencies.
  Establishes Continuous Improvement Fund.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to state finance; creating new provisions; amending ORS
  171.585; appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 171.585 is amended to read:
  171.585. The Joint Legislative Audit Committee shall:
  (1) Review all audits and make recommendations for change or
remediation by the agency or other organization under review to
the Emergency Board, the Joint Ways and Means Committee and other
persons receiving the audit report under ORS 192.245.
  (2) Accept requests for performance and program audits from
individual legislators, legislative committees, the Division of
Audits, the Budget and Management Division and the Legislative
Fiscal Office.
   { +  (3) Retain consultants to make recommendations to
restructure and reform processes, procedures and organizational
structures of state and local agencies for the purpose of
decreasing costs and increasing the quality of services provided
by state and local agencies to the public. The consultants shall
have proven experience in transforming organizations and shall be
paid based on cost savings achieved. + }
    { - (3) - }  { +  (4) + } In conjunction with the Director of
the Division of Audits, set priorities on the basis of risk
assessment for performance and program audits and program
evaluations.
    { - (4) - }  { +  (5) + } With the advice and assistance of
the Legislative Fiscal Officer, the Administrator of the Budget
and Management Division and the Director of the Division of
Audits, determine the type of audit, evaluation or review
utilizing criteria to include but not be limited to the nature
and scope of the task, the time frame involved, necessary
professional guidelines, economy, efficiency, cost and cost
responsibility.
    { - (5) - }  { +  (6) + } Not later than 12 months after the
issuance of an audit report, review the actions of an agency or
other government organization for compliance with the
recommendations of the audit report.
    { - (6) - }  { +  (7) + } Assign tasks to the Legislative
Fiscal Office, the Budget and Management Division, the Division
of Audits or a special task force.
  SECTION 2.  { + (1) The Joint Legislative Audit Committee shall
require consultants retained by the committee under ORS 171.585
(3) to report to the Legislative Assembly their findings and
recommendations in the manner provided by ORS 192.245 no later
than February 1 of each odd-numbered year.
  (2) Each state or local agency that is evaluated by consultants
shall retain a percentage of the cost savings identified by the
consultants.
  (3) Each state agency that is evaluated shall report to the
Legislative Assembly on how the state agency plans to expend any
cost savings that the consultants identify for the state agency.
In the case of a local agency that is evaluated, any state agency
that distributes moneys to the local agency shall report to the
Legislative Assembly on how the local agency may expend any cost
savings that the consultants identify for the local agency.
  (4) The percentage to be retained by an agency under subsection
(2) of this section shall be established by the Legislative
Assembly and shall be based on the reports described in
subsection (3) of this section. + }
  SECTION 3.  { + (1) The Continuous Improvement Fund is
established in the State Treasury separate and distinct from the
General Fund.  Interest earned by the Continuous Improvement Fund
shall be credited to the Continuous Improvement Fund.
  (2) Moneys in the Continuous Improvement Fund are continuously
appropriated to the Legislative Fiscal Officer for the purpose of
enabling the Joint Legislative Audit Committee to carry out its
function of retaining consultants as described in ORS 171.585
(3).
  (3) The Continuous Improvement Fund shall consist of:
  (a) Moneys appropriated to the Continuous Improvement Fund by
the Legislative Assembly from cost savings achieved by state and
local agencies based on recommendations made by consultants
retained under ORS 171.585 (3); and
  (b) Other moneys appropriated to the Continuous Improvement
Fund by the Legislative Assembly. + }
  SECTION 4.  { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect on its
passage. + }
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