ENGROSSED SENATE
BILL NO. 646 	By:	Coffee, Mazzei, Brogdon, Jolley and Marlatt of the Senate

			and

		Benge of the House

[ state government - Accountability, Innovation and Privatization Act - codification - noncodification 	- effective date ]

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law not to be codified in the Oklahoma Statutes reads as follows:
It is the finding of the Legislature that the Legislative Service Bureau is able to implement the provisions of the Accountability, Innovation and Privatization Act using existing resources through savings derived in other agency program areas.
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.3 of Title 74, unless there is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Accountability, Innovation and Privatization Act”.
SECTION 3.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.4 of Title 74, unless there is created a duplication in numbering, reads as follows:
As used in the Accountability, Innovation and Privatization Act:
1.  “Committee” means the Joint Committee on Accountability, Innovation and Privatization created in Section 41.47 of Title 62 of the Oklahoma Statutes;
2.  “Office” means the Office of Accountability, Innovation and Privatization created in Section 6 of this act;
3.  "Performance audit" means an audit to provide the determinations set forth in subsection B of Section 8 of this act;
4.  "Person" means an individual, proprietorship, partnership, limited liability company, limited partnership, association, trust, estate, business trust, group, corporation, or other legal entity, whether or not operated for profit, or a governmental agency, unit, or subdivision;
5.  "State agency" means any state office, officer, department, board, commission, institution, bureau, agency, or authority or any division or unit thereof; and
6.  “Tax incentive review” means a review of any tax preference or other provision of tax law to determine the impact on state revenues of the granting of such preference and any economic benefit to the state resulting therefrom, as set forth in subsection B of Section 8 of this act.
SECTION 4.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.5 of Title 74, unless there is created a duplication in numbering, reads as follows:
The purpose of the Accountability, Innovation and Privatization Act is to require the conducting of performance audits, the review of tax incentives, the feasibility of privatizing governmental assets and services and the investigation and eradication of waste, fraud, abuse and corruption in state government, to ensure that taxpayer funds are being used efficiently and effectively and that state agencies are using the best practices available.
 SECTION 5.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.6 of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  The Joint Committee on Accountability, Innovation and Privatization shall have the following powers and duties, in addition to other powers conferred upon it by law and other powers provided by law to standing committees of the Legislature:
1.  To appoint and fix the compensation of the Director of the Office of Accountability, Innovation and Privatization;
2.  Not later than March 1 of each year, to determine and publish a list of state agencies or state programs for which a performance audit will be conducted, subject to available funding.  Such list may include specific divisions of state agencies if directed by the Committee.  The Legislature, by concurrent resolution or by statute, may add or delete state agencies or divisions thereof, or state programs, to or from the list.  The Governor or any member of the Legislature may request a performance audit to be conducted of any agency, division or state program by making a written request to the Committee detailing the reasons for requesting such audit, which shall be granted upon a majority vote of a quorum of the Committee, subject to available funding;
3.  Not later than January 1 of each year, to determine and publish a list of tax preferences or other provisions of tax law for which a tax incentive review will be conducted, subject to available funding.  The Legislature, by concurrent resolution or by statute, may add or delete tax preferences or other provisions of tax law to or from the list.  The Governor or any member of the Legislature may request a tax incentive review to be conducted of any provision of state tax law by making a written request to the Committee detailing the reasons for requesting such review, which shall be granted upon a majority vote of a quorum of the Committee;
4.  As often as it deems necessary, to identify assets owned or services provided by the State of Oklahoma or its political subdivisions which could be converted to private ownership and to evaluate the advisability and feasibility of such conversion.  The Legislature, by concurrent resolution or by statute, may identify specific assets to be evaluated pursuant to the provisions of this paragraph;
5.  To enter into contracts with independent auditors as may be necessary to accomplish the intent of the Accountability, Innovation and Privatization Act;
6.  To coordinate with the State Auditor and Inspector or any other entity of state government as the Committee deems necessary;
7.  To propose legislation, conduct interim studies or make other proposals for consideration by the Legislature, based upon its findings, for the purposes of fostering innovation in state government and making state government processes more accessible, transparent and accountable to the taxpayers;  
8.  To collect any information from state agencies or other persons or entities, which relates or may relate to a performance audit or tax incentive review, or to delegate such authority to the Director of the Office of Accountability, Innovation and Privatization; and
9.  To investigate allegations of waste, fraud, abuse and corruption in state government and, upon a majority vote of the Joint Committee, to refer such allegations to the appropriate authorities for prosecution or other action.
B.  Each state agency and other affected persons shall cooperate with the Committee and the Director in the providing of any information requested.  The Committee shall have the power to issue subpoenas and to compel the attendance of witnesses and the production of information as provided in Section 773 of Title 74 of the Oklahoma Statutes, upon a majority vote of a quorum of the members of the Committee.
SECTION 6.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.7 of Title 74, unless there is created a duplication in numbering, reads as follows:
There is hereby created the Office of Accountability, Innovation and Privatization within the Legislative Service Bureau.  The Director of the Office of Accountability, Innovation and Privatization shall be appointed by the Joint Committee on Accountability, Innovation and Privatization for a four-year term and shall only be removed prior to the expiration of the term for good cause shown.  The Director shall be a person of extensive experience and recognized qualifications in the field of governmental fiscal procedures and auditing.  The Director shall employ and fix the compensation of employees of the Office.  The Director and all such employees shall be in the unclassified service.  The Office shall conduct, or shall cause to be conducted, performance audits and tax incentive reviews as directed by the Joint Committee and shall provide staff services to the Joint Committee to enable it to conduct its responsibilities as set forth in the Accountability, Innovation and Privatization Act.
SECTION 7.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.8 of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  A performance audit may be conducted each year of those state agencies specified by law or concurrent resolution of the Legislature or designated by the Joint Committee on Accountability, Innovation and Privatization, subject to available funding.  If funding is insufficient to conduct every such performance audit, those specified by law shall receive first priority and the Joint Committee shall specify the priority of those specified by concurrent resolution of the Legislature or designated by the Joint Committee.  These audits shall be conducted in accordance with generally accepted governmental auditing standards.  The resulting written audit reports shall be issued as soon after the completion of the audit as is practicable.
B.  A performance audit shall determine:
1.  Whether the audited agency, division or program is carrying out only those activities or programs authorized by state law, or is engaging in activities, or programs which go beyond its authorization, as set forth in state law;
2.  Whether the agency, division or program is efficiently and effectively administered, including, but not limited to:
a.	whether it is operated under the best practices of this state or other comparable entities,
b.	whether its functions are duplicative of, or could be better provided by, other agencies of state government or the private sector, and
c.	whether it is operated in a manner which is accessible and easily used by those to whom public services are provided;
3.  Whether a new agency, division or program is efficiently and effectively implemented according to the intent of the Legislature as expressed in state law; and
4.  Whether any change or reorganization of the agency, division or program would be preferable to its current structure.
C.  Copies of the reports of audits conducted shall be furnished to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, each member and the staff of the Joint Committee on Accountability, Innovation and Privatization, the audited state agency and each member of the governing board of the state agency, if applicable, and other interested persons or agencies as may be specified by the Committee or required by law or by the specifications of the audit.  The copies may be furnished electronically.
SECTION 8.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.9 of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  A tax incentive review may be conducted each year of those tax preferences or other provisions of tax law specified by law or concurrent resolution of the Legislature or designated by the Joint Committee on Accountability, Innovation and Privatization, subject to available funding.  If funding is insufficient to conduct every such tax incentive review, those specified by law shall receive first priority and the Joint Committee shall specify the priority of those specified by concurrent resolution of the Legislature or designated by the Joint Committee.  The Oklahoma Tax Commission shall provide such assistance to the Committee in the conduct of such reviews as may be necessary.
B.  A tax incentive review shall include, but not be limited to:
1.  A determination of the impact on state revenues due to the granting of the tax preference or provision;
2.  A determination of the economic benefit to the state due to the granting of the tax preference or provision, whether measured in increased state revenues, job creation, wage or personal income growth, investment in this state, or other economic criteria;
3.  An estimate of the effect on the distribution of the tax burden upon citizens or legal entities of this state;
4.  An analysis of the competitive position of this state relative to other states with similar tax preferences or provisions; and
5.  An overall determination of the effectiveness of the tax preference or provision in achieving the desired objective as set forth in state law.
C.  Copies of the reports of tax incentive reviews conducted shall be furnished to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, each member and the staff of the Joint Committee on Accountability, Innovation and Privatization, the Tax Commission, and other interested persons or agencies as may be specified by the Committee or required by law or by the specifications of the review.  The copies may be furnished electronically.
D.  Notwithstanding the provisions of Section 205 of Title 68 of the Oklahoma Statutes, any person receiving tax information under the provisions of this section shall be subject to the same duty of confidentiality imposed by law upon the Tax Commission and shall be subject to any civil or criminal penalties imposed by law for violations of such duty of confidentiality.
SECTION 9.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 450.10 of Title 74, unless there is created a duplication in numbering, reads as follows:
An investigation may be ordered and conducted by the Joint Committee on Accountability, Innovation and Privatization, upon a majority vote of a quorum of the members thereof, into any information received by the Joint Committee, or the Office of Accountability, Innovation and Privatization, alleging waste, fraud, abuse or corruption in state government.  The Joint Committee may request the assistance of the Office of the Attorney General, the Office of the State Auditor and Inspector, the Office of State Finance, or any other state agency.  If the Committee determines that waste, fraud, abuse or corruption has or may have occurred, the Joint Committee shall forward the results of its investigation and any other relevant information that it has received to the appropriate authority for prosecution or other action. 
SECTION 10.     AMENDATORY     74 O.S. 2001, Section 450.1, is amended to read as follows:
Section 450.1  A.  The Legislative Fiscal Office and Joint Bill Processing Department are hereby abolished.
B.  There is hereby created the Legislative Service Bureau which shall serve both the House of Representatives and the Senate.  The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall employ a Director of the Legislative Service Bureau, who shall employ such personnel as necessary to implement the responsibilities imposed upon the Bureau by the Legislature by concurrent resolution.
C. B.  1.  The Legislative Service Bureau shall be responsible for such services as directed by the Speaker of the House of Representatives and the President Pro Tempore of the Senate; and any area of production of proposed legislation as directed by the Speaker of the House of Representatives and President Pro Tempore of the Senate.
2.  The Legislative Service Bureau shall be a clearinghouse for the Legislature for all budgetary forms, research reports and information.
3.  Any reference in the Oklahoma Statutes to the Legislative Fiscal Office or the Joint Bill Processing Department shall be a reference to the Legislative Service Bureau.
4.  The Legislative Service Bureau shall provide office space, equipment and other administrative support required by the Office of Accountability, Innovation and Privatization.
SECTION 11.     AMENDATORY     62 O.S. 2001, Section 41.47, as amended by Section 3, Chapter 301, O.S.L. 2003 (62 O.S. Supp. 2008, Section 41.47), is amended to read as follows:
Section 41.47  A.  There is hereby established the Legislative Oversight Committee on State Budget Performance Joint Committee on Accountability, Innovation and Privatization.  The purposes of this committee shall include oversight of the implementation of a system of program performance-based budgeting for implementation by state agencies and implementation and administration of the Accountability, Innovation and Privatization Act.
B.  The In addition to its duties specified in Section 6 of this act, the Joint Committee's duties shall also include:
1.  Development of agency budget request forms and instructions in conjunction with the Office of State Finance;
2.  Directing studies to aid in the development of legislative and procedural changes to further improve the budgetary, financial, accounting, reporting, personnel, and purchasing processes and systems of the state;
3.  Direction of program evaluation and management studies;
4.  Oversight and reporting on executive branch compliance with the legislative intent of appropriation measures.  Such oversight and reporting duties may include:
a.	agency reorganization actions,
b.	executive orders calling for reduction of full-time-equivalents or hiring freezes, and
c.	transfer of funds by the executive branch;
5.  The development of revenue and expenditure estimates and analyses; 
6.  Study of the management, operations, programs and fiscal needs of the agencies and institutions of Oklahoma state government pursuant to the Oklahoma Program Performance Budgeting and Accountability Act;
7.  Review of the executive budget, agency strategic plans and the estimate of needs of each state agency and institution.  Reports may be issued by the Joint Committee as it deems appropriate; and
8.  Implementation of an ongoing evaluation review procedure of existing programs based on zero-base budgeting techniques pursuant to the Oklahoma Program Performance Budgeting and Accountability Act.  The committee in cooperation with the Office of State Finance shall establish a schedule to review strategic plans and existing programs for each agency a minimum of once every four (4) years.  The committee shall issue an evaluation report for each agency once every four (4) years which will include but not be limited to the following information:
a.	a review of the agency’s programs, performance and management,
b.	whether the agency has demonstrated that there is a need for the services and programs which justifies the agency’s continued existence,
c.	whether the agency is the most appropriate provider of the programs and services furnished by the agency.
C.  Any reference in the Oklahoma Statutes to the Joint Legislative Committee on Budget and Program Oversight or the Legislative Oversight Committee on State Budget Performance shall be a reference to the Legislative Oversight Committee on State Budget Performance Joint Committee on Accountability, Innovation and Privatization.
D.  The Joint Committee shall be composed of three five members appointed by the President Pro Tempore of the Senate, three and five members appointed by the Speaker of the House of Representatives, two members by the minority leader of the Senate and two members appointed by the minority leader of the House of Representatives; provided, of the members appointed by each appointing authority, not more than three shall be members of the same political party, and not more than three shall represent legislative districts which are part of the same county.  The Chair and Vice Chair of the Committee shall rotate every two (2) years between the Senate and the House of Representatives beginning with a Senate member serving as Chair in 2003.  The Committee shall meet at least four (4) times per year and at other times as called by the Chair.  The Legislative Oversight Committee on State Budget Performance Joint Committee shall function as a committee of the Legislature when the Legislature is in session and is not in session.  Each member of the Joint Committee shall serve until a successor is appointed.
E.  The Joint Committee shall be staffed jointly by the staff of the fiscal divisions of the Senate and the House of Representatives and the Office of Accountability, Innovation and Privatization.
F.  The Joint Committee may make use of all available teleconferencing technology to facilitate meetings of the Joint Committee when the Legislature is not in session.  The Joint Committee shall take any appropriate action to make such teleconferenced meetings comply with the provisions of the Oklahoma Open Meeting Act, Section 301 et seq. of Title 25 of the Oklahoma Statutes.
G.  The Joint Committee shall periodically meet in different geographical regions of the state to enhance the Committee's understanding of local conditions and to help educate the public as to the fiscal condition of the state.
SECTION 12.  This act shall become effective July 1, 2009.
Passed the Senate the 10th day of March, 2009.

	
Presiding Officer 	of the Senate

Passed the House of Representatives the ____ day of __________, 2009.

	
Presiding Officer	of the House
	of Representatives