Chapter 7 Oregon Laws 2008 Special Session
AN ACT
SB 1099
Relating to state agency performance excellence; creating new
provisions; amending ORS 297.050 and 297.070; and declaring an emergency.
Whereas the state cannot
legislate excellence, but can expect it, support it and acknowledge it when it
occurs; and
Whereas excellence is a
passion, and when it exists the Legislative Assembly should support it fully;
and
Whereas innovation
involves calculated risk taking that should be supported when it occurs; and
Whereas the purpose of
this legislation is to create a process that will oversee the journey to
excellence and will encourage the most vital aspects of Oregon state government
to be managed at a world-class level; now, therefore,
Be It Enacted by the People of
the State of
SECTION 1. (1)
The Committee on Performance Excellence is established. The committee shall
consist of nine members, appointed as follows:
(a) The Speaker of the
House of Representatives shall appoint one member of the House of
Representatives;
(b) The President of the
Senate shall appoint one member of the Senate;
(c) The Governor shall
appoint two employees of the executive department, as defined in ORS 174.112;
(d) The Governor shall
appoint three public members who have demonstrated experience in the practice
of continuous improvement in business; and
(e) The Governor shall
appoint:
(A) One member from the
largest employee representative unit; and
(B) One member from
representable employees not represented by the employee representative unit
described in subparagraph (A) of this paragraph.
(2)(a) Except as
otherwise provided in paragraph (b) of this subsection, the term of office of
each member is two years, but a member serves at the pleasure of the appointing
authority. Before the expiration of the term of a member, the appointing
authority shall appoint a successor whose term begins on July 1 next following.
A member is eligible for reappointment. If there is a vacancy for any cause,
the appointing authority shall make an appointment to become immediately
effective for the unexpired term.
(b) If a legislative
member of the committee ceases to be a legislator, the legislator’s position on
the committee becomes vacant. If an executive department member of the committee
ceases to be an employee of the executive department, the member’s position on
the committee becomes vacant.
(3) The committee shall
select one of its members as chairperson and another as vice chairperson. The
committee may determine the duties and powers of the officers, as well as the
terms of office of the officers.
(4) A majority of the
members of the committee constitutes a quorum for the transaction of business.
(5) The committee shall
meet at times and places specified by the call of the chairperson or of a
majority of the members of the committee.
(6) Except as provided
in ORS 171.072 for members of the Legislative Assembly, members of the
committee are not entitled to compensation or reimbursement for expenses and
serve as volunteers on the committee.
SECTION 2. (1)
The mission of the Committee on Performance Excellence is to assist state
agencies in reaching performance excellence by providing policy review,
recognition and recommendations for funding of proposals that advance performance
excellence in state government.
(2)(a) The committee
shall focus on the following areas that define performance:
(A) Customer and market
focus.
(B) Human resources.
(C) Leadership.
(D) Measurement,
analysis and knowledge management.
(E) Process management.
(F) Results.
(G) Strategic planning.
(b) The committee may
focus on other areas that define performance and may give different weights to
different areas described in this subsection, according to the needs of a
particular state agency.
(c) The committee may
advise state agencies with respect to:
(A) Statewide
performance management improvement efforts;
(B) Statewide
performance measurement processes;
(C) Training designed to
enhance the performance management and continuous improvement abilities of
state agency managers;
(D) Coordination efforts
that advance state agency access to external resources, including universities
and performance consultants;
(E) Recognition programs
for continuous improvement efforts; and
(F) Other performance or
continuous improvement efforts suggested by state agencies for review and
feedback.
(3)(a) As part of any
performance excellence effort, the committee may support state agency efforts
to acquire the methods, tools and skills to achieve performance improvement by
recommending that the Legislative Assembly or Emergency Board approve grants
for continuous improvement projects.
(b) The committee shall:
(A) Establish criteria
for submission and review of continuous improvement projects; and
(B) Work with the
Legislative Fiscal Office to establish a process for submitting recommendations
to the Legislative Assembly or Emergency Board for grant funding consideration,
including maximum grant award amounts and reporting requirements.
(c) The Legislative Assembly
may appropriate moneys to the Emergency Board to fund continuous improvement
projects.
(4) The committee shall
make periodic public reports on achievement of performance excellence. The
reports shall be in a form and manner determined by the committee and may
include, but need not be limited to, press releases. The reports shall be
delivered to the Governor and to each member of the Legislative Assembly and
made available to the general public.
SECTION 3. (1)
Each state agency that is audited by the Secretary of State under ORS 297.070
or 297.210 shall review the audit report issued by the secretary and identify
any audit recommendations that present an opportunity for continuous
improvement for the agency.
(2) Not later than three
months after the date the secretary issues the audit report, the state agency
shall report in writing to the Committee on Performance Excellence. The report
shall describe the opportunities for continuous improvement identified by the
agency.
(3) Not later than six
months after the date the secretary issues the audit report, the state agency
shall report in writing to the committee. The report shall describe a plan for
addressing the opportunities for continuous improvement identified by the
agency under subsection (2) of this section.
SECTION 4. (1)
The Oregon Department of Administrative Services shall provide administrative
support to the Committee on Performance Excellence.
(2) The Legislative
Fiscal Office and the Budget and Management Division of the Oregon Department
of Administrative Services shall jointly provide professional support to the
committee and provide periodic public reports on state agency continuous
improvement projects and performance improvements.
SECTION 5. As
used in sections 1 to 5 of this 2008 Act:
(1) “Continuous
improvement” means a set of actions designed to permanently improve state
agency performance, either in a specific targeted area or across all levels of
an agency, through the use of structured process analysis and problem solving.
(2) “Performance
management” means a formal, comprehensive set of business processes, including
strategic planning, performance measurement, leadership, process management and
human resources, that help ensure more efficient and effective management operations
and practices.
(3) “State agency” or “agency”
means every state officer, board, commission, department, institution, branch
or agency of the state government, as defined in ORS 174.111.
SECTION 6. (1)
Notwithstanding the term of office specified by section 1 of this 2008 Act, of
the members first appointed to the Committee on Performance Excellence:
(a) One executive
department member, the member from the largest employee representative unit and
two public members shall each serve for a term ending July 1, 2009.
(b) The House member,
the Senate member, one executive department member, the member from
representable employees not represented by the largest employee representative
unit and one public member shall each serve for a term ending July 1, 2010.
(2) The terms of office
for members first appointed under this section shall begin on July 1, 2008.
SECTION 7.
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 Committee, the Committee on Performance Excellence established in
section 1 of this 2008 Act and the Legislative Fiscal Officer with a copy
of each audit report made by or for the Division of Audits.
SECTION 8.
ORS 297.070 is amended to read:
297.070. (1) Performance
and program audits of all state departments, boards, commissions, institutions
and state-aided institutions and agencies shall be conducted on the basis of
risk assessment and on standards established by national recognized entities
including, but not limited to, the United States General Accounting Office and
the National Association of State Auditors. The Secretary of State shall adopt
and the Joint Legislative Audit Committee shall approve rules specifying all
criteria to be considered for conducting a performance or program audit under
this section. The Secretary of State shall schedule the performance and program
audits as directed by the Joint Legislative Audit Committee.
(2) The Secretary of
State may subpoena witnesses, may require the production of books and papers
and 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 audit.
The Secretary of State shall report, in writing, to the Legislative Assembly as
provided in ORS 192.245 and to the Committee on Performance Excellence
established in section 1 of this 2008 Act. The report shall include a copy
of the report on each performance and program audit.
(3) The Secretary of
State, as State Auditor, shall contract with qualified private sector auditors
to conduct audits required by this section, unless the Secretary of State
determines that it is not practical or in the public interest to do so. If the
Secretary of State determines that it is not practical or in the public
interest to contract with qualified private sector auditors, after notifying
the Joint Legislative Audit Committee, the Secretary of State shall employ
auditors for such purpose and shall include in the written audit report the
circumstances that rendered it impractical or not in the public interest to
contract with qualified private sector auditors. All contracts for conducting
performance and program audits under this section shall be in a form prescribed
or approved by the Secretary of State. A copy of each completed contract shall
be furnished to the Secretary of State and the Joint Legislative Audit
Committee. The Secretary of State shall employ or contract with auditors upon
terms and for compensation as the Secretary of State determines are
advantageous and advisable.
(4) An audit conducted
under contract as provided in subsection (3) of this section shall be
considered to be conducted by the Division of Audits for purposes of ORS
297.020, 297.050 and 297.535.
(5) If a person fails to
comply with any subpoena issued under subsection (2) of this section, a judge
of the circuit court of any county, on application of the Secretary of State,
shall compel obedience by proceedings for contempt as in the case of
disobedience of the requirements of a subpoena issued from the circuit court.
(6) The Secretary of
State may enter into an agreement with the department, board, commission,
institution, state-aided institution or agency that is the subject of a
performance or program audit for payment of the expenses incurred by the
Secretary of State in conducting the audit. The Emergency Board may also make
funds available to the Division of Audits to reimburse it for expenses incurred
under this section.
(7) As used in this
section:
(a) “Performance audit”
includes determining:
(A) Whether an entity
described in subsection (1) of this section that is the subject of the audit is
acquiring, protecting and using its resources economically and efficiently;
(B) The causes of
inefficiencies or uneconomical practices; and
(C) Whether the entity
has 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 a program established by the Legislative
Assembly or other authorizing body are being achieved;
(B) The extent to which
the need for or objectives of an ongoing program are necessary or relevant;
(C) Whether the program
complements, duplicates, overlaps or conflicts with other related programs;
(D) The effectiveness of
organizations, programs, activities or functions; and
(E) Whether the entity
described in subsection (1) of this section that is the subject of the audit
has complied with laws and regulations applicable to the program.
SECTION 9. This
2008 Act being necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this 2008 Act takes
effect on its passage.
Approved by the Governor March 3, 2008
Filed in the office of Secretary of State March 4, 2008
Effective date March 3, 2008
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