Illinois-2011-HB5556-Introduced

97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB5556

Introduced , by Rep. John E. Bradley

SYNOPSIS AS INTRODUCED:

`New Act`
`5 ILCS 315/15`	`from Ch. 48, par. 1615`
`20 ILCS 415/26 new`
`30 ILCS 105/5.811 new`
`30 ILCS 105/6z-93 new`

Creates the Division of Financial Reporting Act. Provides that the Division will serve under the direction of the State Chief Information Officer, subject to the oversight of the Board of Trustees. Sets forth the responsibilities of the Division, including, but not limited to: implementing a modernized financial accounting system for the State of Illinois in the form of an Enterprise Resource Planning or "ERP" System and conducting management and operational evaluations of each executive branch agency. Creates a Board of Trustees to oversee the Division. Effective immediately.

LRB097 20459 HLH 65971 b

FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB5556

LRB097 20459 HLH 65971 b

1 AN ACT concerning State government.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the

5 Division of Financial Reporting Act.

6 Section 5. Findings. The General Assembly finds that:

7 (1) Addressing the State's inability to produce

8 Generally Accepted Accounting Principles (GAAP)-compliant

9 financial reports in a timely manner is an urgent priority.

10 (2) The Auditor General's recent findings on the

11 State's financial accounting systems provide a unique

12 opportunity for key stakeholders to make policy choices

13 that can materially improve the State's likelihood of

14 success in addressing this problem.

15 (3) The State's problems in financial reporting

16 represent the cumulative effect of a multitude of systemic

17 challenges, including: archaic technology, insufficient

18 staff resources in the areas of accounting, technology,

19 training, financial analysis, and other fields, disparate

20 approaches to financial reporting among dozens of

21 agencies.

22 (4) Implementing a modern, agile process for

23 collecting, assembling, in a uniform fashion, financial

HB5556

- 2 -

LRB097 20459 HLH 65971 b

1 information such that the State can produce timely,

2 GAAP-compliant financial reports through an Enterprise

3 Resource Planning (ERP) system will involve not only

4 significant monetary investment in software acquisition

5 and implementation services, but also, preliminarily,

6 changes to the structure and internal management of State

7 government.

8 Section 10. Division of Financial Reporting; creation.

9 There is hereby created a Division of Financial Reporting. The

10 Division will serve under the direction of the State Chief

11 Information Officer, subject to the oversight of the Board of

12 Trustees. The Division shall have the following

13 responsibilities:

14 (1) to implement a modernized financial accounting

15 system for the State of Illinois in the form of an

16 Enterprise Resource Planning or "ERP" System;

17 (2) to assemble a group of management professionals,

18 having both public and private sector experience, in

19 addition to experience in ERP implementation and financial

20 reporting needs of agencies in the executive branch; the

21 Division shall be staffed with professionals having

22 high-level skill sets in accounting, financial reporting

23 and management, enterprise systems implementation, and

24 business process reengineering; these professionals will

25 provide assistance to executive branch agencies engaged in

HB5556

- 3 -

LRB097 20459 HLH 65971 b

1 financial reporting, technology, and ERP implementation;

2 (3) to provide certification and continuing education

3 in the areas of accounting financial reporting and

4 technology;

5 (4) to conduct management and operational evaluations

6 of each executive branch agency; and to submit a

7 recommended plan for personnel changes, operational

8 changes, and policy modifications to the Office of the

9 Governor, the General Assembly, and the Comptroller's

10 office; all executive branch agencies directly responsible

11 to the Governor shall align their respective technology

12 strategies and operations to the plan and render full

13 cooperation in its implementation

14 (5) to work, in cooperation with the Executive Ethics

15 Commission, the Chief Procurement Officers appointed

16 pursuant to P.A. 96-795, the Department of Central

17 Management Services, the Office of the Comptroller, and

18 other stakeholders on an optimal procurement strategy for

19 acquiring the software and services for ERP implementation

20 and for the implementation of other enterprise wide

21 systems;

22 (6) to employ the individuals that are necessary to

23 carry out the duties and functions of the Office;

24 (7) to obligate and expend monetary resources

25 essential for carrying out the duties and responsibilities

26 of the Office;

HB5556

- 4 -

LRB097 20459 HLH 65971 b

1 (8) to work in cooperation with the Governor's Office

2 of Management and Budget, agency directors, and the Office

3 of the Comptroller to address agency needs and the delivery

4 of timely information;

5 (9) to assemble a team of management professionals as

6 staff for the Division and for the performance of other

7 duties set forth in this Act;

8 (10) to undertake any other act essential for the

9 performance of the duties and responsibilities of the

10 Office.

11 (11) to direct the State's financial reporting and

12 related technology policies, practices, and objectives

13 with respect to all State agencies directly responsible to

14 the Governor.

15 Section 15. Board of Trustees. There is hereby created a

16 Board of Trustees for the Division, consisting of 7 members.

17 The Governor, the Comptroller, the Speaker of the House of

18 Representatives, the Minority Leader of the House of

19 Representatives, the Senate President, and the Senate Minority

20 Leader shall each appoint one. The Governor and the Comptroller

21 will each designate a person to serve as co-chairperson. The

22 purpose of the Board of Trustees is to ensure transparency,

23 open communication, and ongoing collaboration between the

24 legislative and executive branches, as well as within and among

25 the executive branch constitutional officers and agencies. At

HB5556

- 5 -

LRB097 20459 HLH 65971 b

1 each meeting the Director of the Division of Financial

2 Reporting will present a detailed report to the trustees

3 outlining all the activities of the Division during the

4 preceding months and will solicit input advice and consultation

5 from the trustees. Meetings of the board shall be subject to

6 the provisions of the Open Meetings Act.

7 Section 20. Exemptions. Notwithstanding any laws, rules,

8 or regulations to the contrary, the Division of Financial

9 Reporting is exempt from all provisions of the Personnel Code

10 and the Illinois Public Labor Relations Act.

11 Section 30. Cooperation. All executive branch agencies

12 must render full cooperation to the Division and its employees.

13 Section 50. The Illinois Public Labor Relations Act is

14 amended by changing Section 15 as follows:

15 (5 ILCS 315/15) (from Ch. 48, par. 1615)

16 Sec. 15. Act Takes Precedence.

17 (a) In case of any conflict between the provisions of this

18 Act and any other law (other than Section 5 of the State

19 Employees Group Insurance Act of 1971, ~~and~~ other than the

20 changes made to the Illinois Pension Code by this amendatory

21 Act of the 96th General Assembly, and other than the Division

22 of Financial Reporting Act), executive order or administrative

HB5556

- 6 -

LRB097 20459 HLH 65971 b

1 regulation relating to wages, hours and conditions of

2 employment and employment relations, the provisions of this Act

3 or any collective bargaining agreement negotiated thereunder

4 shall prevail and control. Nothing in this Act shall be

5 construed to replace or diminish the rights of employees

6 established by Sections 28 and 28a of the Metropolitan Transit

7 Authority Act, Sections 2.15 through 2.19 of the Regional

8 Transportation Authority Act. The provisions of this Act are

9 subject to Section 5 of the State Employees Group Insurance Act

10 of 1971. Nothing in this Act shall be construed to replace the

11 necessity of complaints against a sworn peace officer, as

12 defined in Section 2(a) of the Uniform Peace Officer

13 Disciplinary Act, from having a complaint supported by a sworn

14 affidavit.

15 (b) Except as provided in subsection (a) above, any

16 collective bargaining contract between a public employer and a

17 labor organization executed pursuant to this Act shall

18 supersede any contrary statutes, charters, ordinances, rules

19 or regulations relating to wages, hours and conditions of

20 employment and employment relations adopted by the public

21 employer or its agents. Any collective bargaining agreement

22 entered into prior to the effective date of this Act shall

23 remain in full force during its duration.

24 (c) It is the public policy of this State, pursuant to

25 paragraphs (h) and (i) of Section 6 of Article VII of the

26 Illinois Constitution, that the provisions of this Act are the

HB5556

- 7 -

LRB097 20459 HLH 65971 b

1 exclusive exercise by the State of powers and functions which

2 might otherwise be exercised by home rule units. Such powers

3 and functions may not be exercised concurrently, either

4 directly or indirectly, by any unit of local government,

5 including any home rule unit, except as otherwise authorized by

6 this Act.

7 (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)

8 Section 55. The Personnel Code is amended by adding Section

9 26 as follows:

10 (20 ILCS 415/26 new)

11 Sec. 26. Division of Financial Reporting Act. This Code is

12 subject to the provisions of the Division of Financial

13 Reporting Act.

14 Section 90. The State Finance Act is amended by adding

15 Sections 5.811 and 6z-93 as follows:

16 (30 ILCS 105/5.811 new)

17 Sec. 5.811. The Division of Financial Reporting Revolving

18 Fund.

19 (30 ILCS 105/6z-93 new)

20 Sec. 6z-93. Division of Financial Reporting Revolving

21 Fund; creation. There is hereby created in the State treasury a

HB5556

- 8 -

LRB097 20459 HLH 65971 b

1 revolving fund as a dedicated fund to receive funds payable to

2 the Division of Financial Reporting for services provided to

3 State agencies. Moneys may be expended from the Fund for the

4 operations of the Division of Financial Reporting.

5 Section 99. Effective date. This Act takes effect upon

6 becoming law.