74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1570
Senate Bill 57
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Public Commission on the
Oregon Legislature)
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.
Creates Office of Program Policy Analysis and Government
Accountability within Legislative Fiscal Office. Directs office
to conduct performance, program and management evaluations or
reviews of state agencies and programs and other state-funded
programs.
Creates Joint Program Policy Analysis and Government
Accountability Committee in lieu of Joint Legislative Audit
Committee. Directs committee to oversee evaluations or reviews
conducted by Office of Program Policy Analysis and Government
Accountability.
Repeals statutory authority of Secretary of State to conduct
performance and program audits.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to the Joint Program Policy Analysis and Government
Accountability Committee; creating new provisions; amending ORS
171.580, 171.585, 182.472, 184.360, 184.649, 283.343, 291.100,
291.272, 297.050, 297.230 and 419C.001; repealing ORS 171.590,
297.065 and 297.070; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Office of Program Policy Analysis and
Government Accountability is created as a unit within the
Legislative Fiscal Office. The Legislative Fiscal Officer shall
select the Director of the Office of Program Policy Analysis and
Government Accountability who shall serve at the pleasure and
under the direction of the Legislative Fiscal Officer.
(2) Pursuant to the policies and directions of the Legislative
Fiscal Officer and the Joint Program Policy Analysis and
Government Accountability Committee created under ORS 171.580,
the Office of Program Policy Analysis and Government
Accountability shall conduct performance, program and management
evaluations or reviews of any state agency, as defined in ORS
291.272, or any state program and any other state-funded program.
(3) The Legislative Fiscal Officer may enter into contracts to
carry out the functions of the Office of Program Policy Analysis
and Government Accountability. + }
SECTION 2. { + (1) In conducting an evaluation or review under
section 1 of this 2007 Act:
(a) The Director of the Office of Program Policy Analysis and
Government Accountability may examine and inspect all accounts,
books, records, files, papers and documents and all financial
affairs of any public body as defined in ORS 174.109.
(b) The director may cause a search to be made of and extracts
to be taken from any account, book, record, file, paper or
document in the custody of any public officer without paying any
fee for the search or extract. Any public officer having the
custody of the account, book, record, file, paper or document
shall make any search requested by the director and furnish the
extracts as requested.
(c) The director may issue:
(A) Subpoenas compelling at a specified time and place the
appearance and sworn testimony of any person whom the director
reasonably believes may be able to provide information relating
to any evaluation, review or other investigation being undertaken
under this section; and
(B) Subpoenas duces tecum compelling the production of any
account, book, record, file, paper, document or other evidence
that the director reasonably believes may relate to an
evaluation, review or other investigation being undertaken under
this section.
(2) If a person fails to comply with any subpoena issued under
subsection (1) of this section, a judge of the circuit court of
any county, on application of the director, shall compel
obedience by proceedings for contempt as in the case of
disobedience of the requirements of a subpoena issued from the
circuit court. + }
SECTION 3. { + (1) As used in this section, 'working papers '
means the notes, internal memoranda and records of work performed
by the Director of the Office of Program Policy Analysis and
Government Accountability on evaluations, reviews and other
investigations undertaken under section 1 or 2 of this 2007 Act,
including any project evidence collected and developed by the
director.
(2) The director and any employees of the Legislative Fiscal
Office are not required to disclose any working papers. + }
SECTION 4. ORS 171.580 is amended to read:
171.580. { - (1) There is created a Joint Legislative Audit
Committee consisting of the chair of the House Ways and Means
Committee, the chair of the Senate Ways and Means Committee, four
members of the House of Representatives appointed by the Speaker
and four members of the Senate appointed by the President. - }
{ + (1) There is created a Joint Program Policy Analysis and
Government Accountability Committee consisting of:
(a) Five members of the House of Representatives appointed by
the Speaker of the House of Representatives, one of whom must be
a member of the Joint Legislative Committee on Ways and Means or,
if there is no joint committee, a member of the committee in the
House of Representatives that has jurisdiction over
appropriations; and
(b) Five members of the Senate appointed by the President of
the Senate, one of whom must be a member of the Joint Legislative
Committee on Ways and Means or, if there is no joint committee, a
member of the committee in the Senate that has jurisdiction over
appropriations.
(2) No more than five members of the committee may be members
of the same political party. + }
{ - (2) - } { + (3) + } The { + Joint Program Policy
Analysis and Government Accountability + }Committee has a
continuing existence and { - may - } { + shall + } meet, act
and conduct { - its - } { + the committee's + } business
during sessions of the Legislative Assembly or any recess
{ - thereof - } { + in a session + } and in the interim
between sessions.
{ - (3) - } { + (4) + } The term of a member { - shall
expire - } { + expires + } upon the convening of the
Legislative Assembly in regular session next following the
commencement of the member's term. When a vacancy occurs in the
membership of the committee in the interim between sessions,
until { - such - } { + the + } vacancy is filled, the
membership of the committee { - shall be considered not to - }
{ + does not + } include the vacant position for the purpose of
determining whether a quorum is present { + , + } and a quorum is
a majority of the remaining members.
{ - (4) - } { + (5)(a) + } Members of the committee shall
receive an amount equal to that authorized under ORS 171.072 from
funds appropriated to the Legislative Assembly for each day spent
in the performance of their duties as members of the committee or
any subcommittee
{ - thereof - } { + of the committee, + } in lieu of
reimbursement for in-state travel expenses. { - However, - }
{ + (b) + } When engaged in out-of-state travel, members
shall { - be entitled to receive their actual and necessary
expenses therefor - } { + receive the expenses actually and
necessarily incurred + } in lieu of the amount authorized by
{ + paragraph (a) of + } this subsection.
{ + (c) + } Payment { + under this subsection + } shall be
made from funds appropriated to the Legislative Assembly.
{ - (5) - } { + (6) + } Action of the committee shall be
taken only upon the affirmative vote of the majority of members
of the committee.
{ - (6) - } { + (7) + } The Legislative Fiscal Office
{ + or the Office of Program Policy Analysis and Government
Accountability + } shall furnish to the committee { - such - }
{ + the + } services of personnel and
{ - such other - } { + the + } facilities { - as - }
{ + that + } are necessary to enable the committee to carry out
its functions as directed by law, with such assistance as the
Division of Audits and Oregon Department of Administrative
Services can provide.
SECTION 5. ORS 171.585 is amended to read:
171.585. The Joint { - Legislative Audit - } { + Program
Policy Analysis and Government Accountability + }Committee
shall:
(1) Review all audits { + conducted by the Secretary of State
and all evaluations or reviews conducted under section 1 of this
2007 Act + } and make recommendations for change or remediation
by the agency or other organization under review to the Emergency
Board, the Joint { + Legislative Committee on + } Ways and Means
{ - Committee - } and other persons receiving { - the - }
{ + an + } audit report under ORS 192.245.
(2) Accept requests for performance { + , program or management
evaluations or reviews + } { - and program audits - } from
individual legislators { - , - } { + and + } legislative
committees, the Division of Audits, the Budget and Management
Division and the Legislative Fiscal Office.
{ - (3) 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) - } { + (3) + } 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 - } { + or the Director of the Office of Program
Policy Analysis and Government Accountability + }, determine the
type of { - audit, - } { + performance, program or
management + } 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) - } { + (4) + } Not later than 12 months after the
issuance of an audit { + or evaluation or review + }report,
review the actions of an agency or other { - government - }
organization for compliance with the recommendations of the
{ - audit - } report.
{ - (6) - } { + (5) + } Assign tasks to the Legislative
Fiscal Office { - , the Budget and Management Division, the
Division of Audits or a special task force - } { + or the
Director of the Office of Program Policy Analysis and Government
Accountability + }.
{ - (7) - } { + (6) + } Review state agency performance
measures and make recommendations for change.
SECTION 6. ORS 297.050 is amended to read:
297.050. The Division of Audits of the office of the Secretary
of State shall supply the Joint { - Legislative Audit - }
{ + Program Policy Analysis and Government Accountability + }
Committee and the Legislative Fiscal Officer with a copy of each
audit report made by or for the Division of Audits.
SECTION 7. ORS 297.230 is amended to read:
297.230. (1) The Division of Audits shall estimate in advance
the expenses that { - it - } { + the division + } will incur
during the biennium in carrying out the provisions of ORS
297.030, 297.120 and 297.210 { - , - } and shall charge
officers, departments, boards and commissions of state government
and other public bodies for their share of such expenses for
periods within the biennium and in sufficient amounts to provide
reasonable cash operating requirements for the division { - of
Audits - } within the biennial period. Each officer, department,
board or commission or other public body shall pay to the credit
of the Division of Audits Account such charge as an
administrative expense from funds or appropriations available to
it in the same manner as other claims against the state or public
body are paid.
(2) { - Payments authorized under this section shall be
consistent with ORS 171.580 and 171.585. - } The Division of
Audits shall report to the Joint { - Legislative Audit - }
{ + Program Policy Analysis and Government Accountability
+ }Committee { - established - } { + created + } under ORS
171.580 when estimated expenses for an audit authorized under
subsection (1) of this section exceed the estimated expenses for
a biennium.
(3) All moneys received from the various state departments,
boards, commissions, institutions and state-aided institutions
and agencies of the state in the payment of the costs of audits
and reviews under this section and ORS 297.210 shall be credited
to the Division of Audits Account.
SECTION 8. ORS 182.472 is amended to read:
182.472. Not later than January 1 of each even-numbered year,
each board subject to ORS 182.456 to 182.472 shall submit a
report to the Governor, the President of the Senate, the Speaker
of the House of Representatives and the Legislative Fiscal
Officer. The Legislative Fiscal Officer shall review the reports
and shall prepare and submit a statement of findings and
conclusions to the Joint { - Legislative Audit - }
{ + Program Policy Analysis and Government Accountability + }
Committee. The report must include the following:
(1) A copy of the most recent audit of the board.
(2) A copy of the actual budget for the prior biennium and a
copy of the board's adopted budget for the biennium in which the
report is made. The budget documents must show:
(a) The beginning balance and ending balance for each of the
two biennia;
(b) A description of material changes between the two biennia;
(c) A description of the public hearing process used to
establish the budget adopted for the current biennium; and
(d) A description of current fees and proposed changes to fees,
along with information supporting the amounts of the current fees
and any proposed changes to the fees.
(3) A description of all temporary and permanent rules adopted
by the board since the last report was submitted.
(4) A description of board actions promoting consumer
protection that were taken since the last report was submitted.
(5) If the board issues licenses, a description of the board's
licensing activities performed since the last report that is
adequate to allow evaluation of the board's performance of its
licensing responsibilities, including:
(a) The number of license applications;
(b) The number of licenses issued;
(c) The number of examinations conducted;
(d) The average time between application for and issuance of
licenses;
(e) The number and types of complaints received about persons
holding licenses;
(f) The number and types of investigations conducted;
(g) The number and types of resolutions of complaints;
(h) The number and type of sanctions imposed; and
(i) The number of days between beginning an investigation and
reaching a resolution.
(6) A description of all other actions taken since the last
report in the performance of the board's statutory
responsibilities that is adequate to allow evaluation of the
board's performance.
SECTION 9. ORS 184.360 is amended to read:
184.360. (1) As used in this section, 'state government ' has
the meaning given that term in ORS 174.111.
(2) It is the policy of this state that internal audit
activities within state government be coordinated to promote
effectiveness.
(3) The Oregon Department of Administrative Services shall
adopt rules setting standards and policies for internal audit
functions within state government. The rules shall include, but
are not limited to:
(a) Standards for internal audits that are consistent with and
incorporate commonly recognized industry standards and practices;
and
(b) Policies and procedures that ensure the integrity of the
internal audit process.
(4) Not later than December 31 of each calendar year, the
department shall prepare and submit a report to the Joint
{ - Legislative Audit - } { + Program Policy Analysis and
Government Accountability + } Committee. In the absence of the
Joint { - Legislative Audit - } { + Program Policy Analysis
and Government Accountability + } Committee, the department shall
submit the report to the Joint Committee on Ways and Means or the
Emergency Board. The report shall describe internal audit
activities that have occurred in state government during the
calendar year in which the report is prepared.
SECTION 10. ORS 184.649 is amended to read:
184.649. The Department of Transportation shall appear before
the Joint { - Legislative Audit - } { + Program Policy
Analysis and Government Accountability + } Committee
{ - established by - } { + created under + } ORS 171.580 at
least once each biennium to report on internal audits and federal
audits of the department.
SECTION 11. ORS 283.343 is amended to read:
283.343. At least biennially, the Oregon Department of
Administrative Services shall examine compliance with rules
adopted pursuant to ORS 283.340 by state agencies owning
vehicles. The department shall submit biennially to the Joint
{ - Legislative Audit - } { + Program Policy Analysis and
Government Accountability + } Committee a management report on
state-owned motor vehicles that includes:
(1) Summaries of agency compliance examinations, with specific
emphasis on noncomplying state agency fleets;
(2) Numbers of motor vehicles, listed by model and by state
agency;
(3) Mileage utilization of motor vehicles, listed by state
agency;
(4) Operating cost per mile of motor vehicles, listed by state
agency; and
(5) Recommendations for increasing motor vehicle utilization,
for decreasing the overall motor vehicle population and for
absorbing noncomplying state agency fleets into the motor pool.
SECTION 12. ORS 291.100 is amended to read:
291.100. (1) It is the intent of the Legislative Assembly, in
funding the development and implementation of a new statewide
financial management system, that statewide financial management
systems and policies support program-driven budget planning and
execution, based on timely and accurate statewide managerial cost
accounting information and that such systems support legislative
program { + , performance and management evaluation or review + }
{ - evaluation and performance auditing - } of statewide
programs and services.
(2) The Oregon Department of Administrative Services shall
devise and supervise statewide financial management systems for
all state agencies by preparing policies and procedures for
implementing and operating financial management systems for all
agencies in state government and measuring implementation. In
order to { - assure - } { + ensure + } that the state's
investment in a modern and complete statewide financial
management system is fully implemented, every agency and unit of
state government shall:
(a) Cooperate and comply fully with policies and procedures and
deadlines prepared by the Oregon Department of Administrative
Services for establishing a database for the financial management
system.
(b) Comply fully with policies and procedures prepared by the
Oregon Department of Administrative Services for operation of the
financial management system.
(3) The Oregon Department of Administrative Services shall
report to the Legislative Assembly no later than December 1 of
even-numbered years:
(a) Progress in implementing the financial management system as
to preparation of financial statements, nonfinancial management
information and the ability of the system to support legislative
program { + , performance and management evaluation or review + }
{ - evaluation and performance auditing - } .
(b) Compliance by each agency and unit of state government with
policies and procedures of the Oregon Department of
Administrative Services for implementation of the financial
management system.
(4) After a review of the Oregon Department of Administrative
Services report by the Legislative Fiscal Officer, the Joint
{ - Legislative Audit - } { + Program Policy Analysis and
Government Accountability + } Committee may schedule a hearing
for any agency or unit of state government to review compliance
with this section and policies and procedures of the Oregon
Department of Administrative Services { - , prior to any
appropriation approval by the Legislative Assembly, as provided
in ORS 171.585 (1) - } .
SECTION 13. ORS 291.272 is amended to read:
291.272. As used in ORS 291.272 to 291.280, unless the context
requires otherwise:
(1) 'Administrative expenses' has the meaning defined by ORS
291.305.
(2) 'Department' means the Oregon Department of Administrative
Services.
(3) 'Governmental service expenses' means the expenses of state
government that are attributable to the operation, maintenance,
administration and support of state government generally, and
includes the following:
(a) Administrative expenses of the Oregon Department of
Administrative Services supported out of the General Fund.
(b) Sixty percent of the expenditures of the Legislative
Assembly out of moneys appropriated from the General Fund, and
all of the expenditures incurred in the administration of the
duties of the Emergency Board.
(c) Sixty percent of the expenditures incurred in the
administration of the duties of the Joint { + Legislative + }
Committee on Ways and Means and the Emergency Board.
(d) Sixty percent of the expenditures incurred out of moneys
appropriated from the General Fund in the administration of the
duties of the Legislative Counsel Committee.
{ + (e) Sixty percent of the expenditures incurred out of
moneys appropriated from the General Fund in the administration
of the duties of the Joint Program Policy Analysis and Government
Accountability Committee. + }
{ - (e) - } { + (f) + } Expenditures of the Secretary of
State in the administration of the office of the State Archivist,
of historic properties programs, and of the administrative rules
publication program.
{ - (f) - } { + (g) + } Seventy-five percent of the
administrative expenses of the Office of the Governor incurred
out of moneys appropriated from the General Fund.
(4) 'State agency' means every state officer, board,
commission, department, institution, branch or agency of the
state government, whose costs are paid wholly or in part from
funds held in the State Treasury, and includes the Legislative
Assembly, the courts and their officers and committees.
SECTION 14. ORS 419C.001 is amended to read:
419C.001. (1) The Legislative Assembly declares that in
delinquency cases, the purposes of the Oregon juvenile justice
system from apprehension forward are to protect the public and
reduce juvenile delinquency and to provide fair and impartial
procedures for the initiation, adjudication and disposition of
allegations of delinquent conduct. The system is founded on the
principles of personal responsibility, accountability and
reformation within the context of public safety and restitution
to the victims and to the community. The system shall provide a
continuum of services that emphasize prevention of further
criminal activity by the use of early and certain sanctions,
reformation and rehabilitation programs and swift and decisive
intervention in delinquent behavior. The system shall be open and
accountable to the people of Oregon and their elected
representatives.
(2)(a) Programs, policies and services shall be regularly and
independently audited as to their effectiveness in providing
public safety and preventing a youth's return to criminal
behavior. The Secretary of State shall select and oversee the
auditors. Audits performed under this subsection must include
program audits and performance audits { - , as defined in ORS
297.070 - } . Programs, policies and services that were
established before, on or after June 30, 1995, are subject to
audit under this subsection.
(b) The programs, policies and services of county juvenile
departments shall be audited pursuant to this subsection.
(c) ORS 297.405 to 297.555 do not apply to an audit conducted
pursuant to this subsection.
(3) To facilitate an audit under subsection (2) of this
section:
(a) The Secretary of State may subpoena witnesses, require the
production of books and papers and the rendering of reports in
such manner and form as the Secretary of State requires and may
do all things necessary to secure a full and thorough
investigation.
(b) The custodian of information that the Secretary of State
deems necessary to conduct the audit shall provide the Secretary
of State or the auditor selected by the Secretary of State access
to the information notwithstanding the fact that the information
may be made confidential or access to the information restricted
by ORS 419A.255 or another law. Information obtained by the
Secretary of State or the auditor pursuant to this paragraph and
made confidential by ORS 419A.255 or another law may be used by
the Secretary of State, the officers and employees of the
Secretary of State or the auditor solely for the purpose of
performing the audit required by subsection (2) of this section
and may not be used or disclosed for any other purpose.
{ + (4) As used in this section:
(a) 'Performance audit' includes determining:
(A) Whether the programs, policies and services referred to in
subsection (2) of this section that are the subject of the audit
are acquiring, protecting and using resources economically and
efficiently;
(B) The causes of uneconomical practices or inefficiencies; and
(C) Whether the programs, policies and services have complied
with laws and regulations concerning matters of economy and
efficiency.
(b) 'Program audit' includes determining:
(A) The extent to which the desired results or benefits of the
programs, policies and services referred to in subsection (2) of
this section are being achieved;
(B) The extent to which the need for or objectives of the
programs, policies and services referred to in subsection (2) of
this section are necessary or relevant;
(C) Whether the programs, policies and services referred to in
subsection (2) of this section complement, duplicate, overlap or
conflict with other related programs;
(D) The effectiveness of the programs, policies and services
referred to in subsection (2) of this section; and
(E) Whether the programs, policies and services referred to in
subsection (2) of this section that are the subject of the audit
have complied with applicable laws and regulations. + }
SECTION 15. { + ORS 171.590, 297.065 and 297.070 are
repealed. + }
SECTION 16. { + Sections 1 to 3 of this 2007 Act, the
amendments to ORS 171.580, 171.585, 182.472, 184.360, 184.649,
283.343, 291.100, 291.272, 297.050, 297.230 and 419C.001 by
sections 4 to 14 of this 2007 Act and the repeal of ORS 171.590,
297.065 and 297.070 by section 15 of this 2007 Act do not affect
any audit, action, proceeding or prosecution begun before and
pending on January 1, 2008. + }
SECTION 17. { + Sections 1 to 3 of this 2007 Act, the
amendments to ORS 171.580, 171.585, 182.472, 184.360, 184.649,
283.343, 291.100, 291.272, 297.050, 297.230 and 419C.001 by
sections 4 to 14 of this 2007 Act and the repeal of ORS 171.590,
297.065 and 297.070 by section 15 of this 2007 Act become
operative on January 1, 2008. + }
SECTION 18. { + The Secretary of State, the Joint Legislative
Audit Committee and the Legislative Fiscal Officer may take any
action before the operative date specified in section 17 of this
2007 Act that is necessary to enable the secretary, committee and
officer to exercise, on and after the operative date specified in
section 17 of this 2007 Act, all the duties, functions and powers
conferred upon the secretary, committee and officer by sections 1
to 3 of this 2007 Act, the amendments to ORS 171.580, 171.585,
182.472, 184.360, 184.649, 283.343, 291.100, 291.272, 297.230 and
419C.001 by sections 4 to 14 of this 2007 Act and the repeal of
ORS 171.590, 297.065 and 297.070 by section 15 of this 2007
Act. + }
SECTION 19. { + This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2007 Act takes effect on
its passage. + }
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