SB 128 Text

COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 128
(By Senators Tomblin, Mr. President, and Sprouse

By Request of the Executive)
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[Originating in the Committee on Government Organization;
reported April 2, 2001.]
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A BILL to amend chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article one-d, relating to creating the office of fiscal analysis and management within the office of the governor; appointment and qualifications of the chief fiscal management officer; powers and duties; requiring spending units to notify the chief fiscal management officer of proposed purchases of certain goods and services; annual report; requiring a comprehensive strategic plan; authority of chief fiscal management officer to obtain assistance from executive branch agencies; authorizing certain assessments against spending units; authorizing transfer of proceeds of assessments to the office of fiscal analysis and management; and termination date.

Be it enacted by the Legislature of West Virginia:

That chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article one-d, to read as follows:
ARTICLE 1D. GOVERNOR'S OFFICE OF FISCAL ANALYSIS AND MANAGEMENT.
§5-1D-1. Findings and purposes.

The Legislature finds and declares that fiscal risk analysis and management is essential to finding practical solutions to the everyday problems of government, and that the management goals and purposes of government would be furthered by the development of a consistent set of fiscal risk analysis and management principles. Therefore, it is the purpose of this article to create, as an integral part of the office of the governor, the office of fiscal analysis and management, with the authority to advise and make recommendations to all state spending units on fiscal risk analysis and management functions on decisions with potential long term fiscal impact of an amount of at least one million dollars.
§5-1D-2. Definitions.

As used in this article:

(a) "Chief fiscal management officer" means the person appointed to the position created in section three of this article and who is vested with authority to assist state spending units in planning and coordinating fiscal risk analysis and management activities that serve the effectiveness and efficiency of the individual state spending units, state executive agencies, and further the overall management goals and purposes of government.

(b) "Fiscal risk analysis and management" means issues that arise out of the day-to-day operations of state government that put at fiscal risk the people, property, or other assets of the state, the overall operation of state government and its ability to carry and acceptance of fiscal risks on decisions with potential long term fiscal impact of an amount of at least one million dollars.

(c) "Long term fiscal impact" means any anticipated budgetary or other financial impact that may result from the proposed expenditure, decision, or undertaking.
§5-1D-3. Creation of the office of fiscal analysis and management; appointment and qualifications of chief fiscal management officer.

(a) There is hereby created the office of fiscal analysis and management within the office of the governor. The office shall be administered by the chief fiscal management officer who shall be appointed by the governor with the advice and consent of the Senate, and shall serve at the will and pleasure of the governor. The chief fiscal management officer shall have knowledge in the area of self-insured risk pools, advanced training in the area of fiscal risk management and an understanding of the special demands upon government with respect to budgetary constraints, the protection of public funds, and federal and state standards of accountability.

(b) The chief fiscal management officer may employ the personnel necessary to carry out the work of the office and may approve reimbursement of costs incurred by employees to obtain education and training.

§5-1D-4. Powers and duties of the office to all state spending units .

With respect to all state spending units, the office of fiscal analysis and management may:

(1) Develop an organized approach to fiscal risk analysis and management;

(2) Provide, with the assistance of certain executive branch agencies, technical assistance to the administrators of the various state spending units in the design and implementation of fiscal risk analysis and management procedures and systems;

(3) Evaluate, with the assistance of certain executive branch agencies, the economic justification and suitability of acceptable fiscal risk levels, the management thereof, and related services, and review and make recommendations on the need for acquisition of fiscal risk analysis, management consulting and actuarial services by the state spending units;

(4) Develop a mechanism for identifying those instances in which the sound application of fiscal risk analysis and management principles can assist agencies in reducing their exposure to or frequency of loss;

(5) Create new tools to assist agencies of government in fulfilling their duties, convene conferences and develop incentive packages to encourage the use of sound fiscal risk management principles;

(6) Engage in any other activities reasonably related to the findings and purposes set forth in section one of this article, as directed by the governor; and

(7) Charge a fee to be assessed by the chief fiscal management officer to the state spending units for evaluations performed and technical assistance provided under the provisions under the provisions of this article.
§5-1D-5. Powers and duties of the office to executive agencies .

With respect to executive agencies, the office of fiscal analysis and management may:

(1) Develop a unified and integrated structure of fiscal risk management for all state executive agencies that must be completed by the first day of July, two thousand two ;

(2) Establish, based on need and opportunity, priorities and time lines for addressing the fiscal risk analysis requirements of the various executive agencies of state government;

(3) Exercise such authority inherent to the chief executive of the state as the governor may, by executive order, delegate, to overrule and supersede decisions made by the administrators of the various executive agencies of government with respect to fiscal risk analysis and management decisions and the acquisition of fiscal risk management services, including, but not limited to, management consulting contracts and contracts for accounting, actuarial and related services; and

(4) Consult and work closely with staff of other executive agencies for advice and assistance in the formulation and implementation of administrative and operational plans and policies.
§5D-1-6. Fees.

All fees collected by the office of fiscal analysis and management shall be deposited in a special account in the state treasury to be known as the "Office of Fiscal Analysis and Management Administration Fund". Expenditures from the fund shall be made by the chief fiscal management officer for the purposes set forth in this article and are not authorized from collections, but are to be made only in accordance with appropriation by the Legislature and in accordance with the provisions of article three, chapter twelve of this code and upon the fulfillment of the provisions set forth in article two, chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth in this article may be transferred to other accounts or funds and used for other purposes by appropriation of the Legislature.
§5-1D-7. Notice of request for proposals by state spending units required to make purchases through the state purchasing division.

Any state spending unit that is required to submit a request for proposal to the state purchasing division prior to purchasing goods or services shall notify the chief fiscal management officer, in writing, of any proposed purchases of goods or services related to fiscal risk analysis and management, including, but not limited to, management consulting, actuarial, accounting, or other contracts that involve the management or fiscal risk evaluation of the spending unit with potential long term fiscal impact of an amount of at least one million dollars. The notice shall contain a brief description of the goods and services to be purchased. The state spending unit shall provide the notice to the chief fiscal management officer ten days prior to its submission of its request for proposal to the state purchasing division.

§5-1D-8. Notice of request for proposals by state spending units exempted from submitting purchases to the state purchasing division.

(a) Any state spending unit that is not required to submit a request for proposal to the state purchasing division prior to purchasing goods or services shall notify the chief fiscal management officer, in writing, of any proposed purchase of goods or services related to fiscal risk analysis and management, including, but not limited to, management consulting, actuarial, accounting, or other contracts that involved the management or fiscal risk evaluation of the spending unit with potential long term fiscal impact of an amount of at least one million dollars. The notice shall contain a detailed description of the goods and services to be purchased. The state spending unit shall provide the notice to the chief fiscal management officer a minimum of ten days prior to the time it requests bids on the provision of the goods or services.

(b) If the chief fiscal management officer evaluates the suitability of the related services under the provisions of subsection (3), section four of this article and determines that the goods or services to be purchased or the price requested for the same are not suitable, he or she shall, within ten days of receiving the notice from the state spending unit, notify the state spending unit, in writing, of any recommendations he or she has regarding the proposed purchase of the goods or services. If the state spending unit receives a written notice from the chief fiscal management officer within the time period required by this section, the state spending unit shall not put the goods or services out for bid less than fifteen days following receipt of the notice from the chief fiscal management officer.
§5-1D-9. Annual report.

The chief fiscal management officer shall report annually to the legislative joint committee on government and finance on the activities of his or her office.
§5-1D-10. Exemptions.

Except for the provisions of section four of this article, the provisions of this article do not apply to the legislative or judicial branches of state government, unless either the legislative or the judicial branch shall request services from the governor's office of fiscal analysis and management.
§5-1D-11. Termination of office.
The office of fiscal analysis and management shall continue to exist until the first day of July, two thousand three, pursuant to the provisions of article ten, chapter four of this code, unless sooner terminated, continued or reestablished pursuant to the provisions of such article.

NOTE: The purpose of this bill is to establish the Governor's Office of Fiscal Analysis and Management.

This article is new; therefore, strike-throughs and underscoring have been omitted.

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