SENATE Final Reading April 20, 2011First Regular Session Sixty-eighth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 11-0420.01 Esther van Mourik SENATE BILL 11-041 SENATE SPONSORSHIP Kopp, HOUSE SPONSORSHIP (None), Senate Committees House Committees Finance Legislative Council Legislative Council A BILL FOR AN ACT Concerning the creation of efficiencies in state executive departments. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill requires the legislative audit committee to appoint a task force (task force) to review executive branch departments and make recommendations related to the executive branch departments' programs in order to identify redundancies, abuse, fraud, and cost savings and to specify other efficiency measures. The task force must report to the legislative audit committee by August 6, 2012, and the legislative audit committee must then recommend to the general assembly such legislation regarding the findings and recommendations of the task force as may be necessary. The bill also addresses the circumstances under which staff assistance will be available for the task force. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read: ARTICLE 2.5 Efficiency in State Executive Departments 24-2.5-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Core function of state government" means a function that is mandated by the state constitution, mandated by the United States constitution or federal law, or is essential to the public safety and protection of life, liberty, and property or to public health. (2) "Executive branch departments" means all principal departments of the executive branch of state government as specified in section 24-1-110, including any division, office, agency, or other unit created within a principal department. (3) "Industry leader" means an executive-level employee or retiree of a large successful industry. (4) "Legislative audit committee" means the legislative audit committee created in section 2-3-101, C.R.S. (5) "Program" means a state government managed program with allocated staff and resources that provides services or performs functions pursuant to either federal law or regulations or the state constitution, statutes, or regulations. (6) "Small or medium business leader" means a successful business owner generally recognized in the business community with up to five hundred employees. (7) "Task force" means the legislative audit committee task force created in section 24-2.5-102 (1). 24-2.5-102. Creating efficiencies in state executive departments. (1) No later than July 1, 2011, the legislative audit committee shall appoint a bipartisan task force to review the state's executive branch departments. The task force shall consist of fourteen members, seven from each of the two major political parties with the greatest number of registered electors in the state. The task force shall consist of: (a) Two industry leaders; (b) Two small or medium business leaders; (c) Two members from organizations, institutes, corporations, or groups that conduct research and engage in advocacy in areas such as business policy or the economy; (d) Four former or current state legislators; (e) Two academics from any public or private institution of higher education in this state with expertise related to public administration or organizational change and management; and (f) Two people with significant project management experience. (2) The task force shall designate one of the industry leaders and one of the small business leaders as chair and vice-chair. (3) The task force shall meet within thirty days after the legislative audit committee appoints the members and shall meet additionally as convened by the chair. (4) The duties of the task force are to determine a list of core functions of state government, including as a subcategory those functions that are federally mandated. After such determination of core functions, the task force shall determine which of the core functions would be better managed by the state or by the private or nonprofit sector. After such determination, the task force shall review the executive branch departments and agencies to: (a) Identify programs that are in existence that are not part of a core function of state government and should therefore be eliminated or phased out; (b) Identify any duplication of programs, recommend the best approach for elimination of any duplication, identify specific positions that should be eliminated in a recommended period, and recommend any combination or elimination of work units, divisions, departments, boards, or commissions. The task force's goal shall be to identify cost savings and measures to downsize existing bureaucracies. To identify such duplication, the task force shall determine whether: (I) There is an overlap of duties with the federal government and whether the state needs to request federal waivers in order to place more of the implementation or decision-making requirements at the state level; (II) There is an overlap of duties with any local government entity; (III) Another program produces work output in the same or similar area; and (IV) Savings can be realized by eliminating the redundancy in either direct or indirect support costs. (c) Make recommendations regarding the feasibility of the adoption of a policy to reduce the number of nonexempt state employees subject to the personnel system as specified in section 13 (2) of article XII of the state constitution through attrition, such as through resignation or retirement, as opposed to general layoffs; and (d) Identify through testimony and other available data areas of possible waste, abuse, or fraud, including but not limited to the abuse by unauthorized persons accessing state government services through means of identity fraud, that may be occurring in the state's executive branch departments. (5) (a) The task force shall report in writing to the legislative audit committee no later than August 6, 2012, regarding its findings, recommendations, and estimated cost savings related to its duties specified in subsection (4) of this section. (b) Notwithstanding any other provision of law, the legislative audit committee shall consider all recommendations, findings, and estimated cost savings made by the task force and shall recommend to the general assembly such legislation regarding the findings, recommendations, and estimated cost savings of the task force as may be necessary. (6) The members of the task force shall serve without compensation but may be reimbursed for all necessary and actual expenses incurred in the performance of their duties only if moneys are credited to the legislative department cash fund pursuant to paragraph (a) of subsection (8) of this section in an amount sufficient to fund such reimbursements. (7) The members of the task force may meet without any staff assistance described in subsection (8) of this section. (8) (a) The legislative council staff, on behalf of the task force, is authorized to receive federal moneys, contributions, grants, gifts, donations, services, and in-kind donations from any public or private entity for any direct or indirect costs associated with the duties of the task force set forth in this section. The legislative council staff shall transfer any moneys received pursuant to this paragraph (a) to the state treasurer, who shall credit the moneys to the legislative department cash fund created in section 2-2-1601, C.R.S., for use in implementing this section. (b) The director of research of the legislative council, the director of the office of legislative legal services, and the state auditor may supply staff assistance to the task force as they deem appropriate within existing appropriations. If staff assistance is not available within existing appropriations, then the director of research of the legislative council, the director of the office of legislative legal services, and the state auditor may supply staff assistance to the task force only if moneys are credited to the legislative department cash fund pursuant to paragraph (a) of this subsection (8) in an amount sufficient to fund staff assistance. The task force may also accept staff support from the private sector. (c) The costs of providing staff assistance to the task force by the director of research of the legislative council, the director of the office of legislative legal services, and the state auditor shall be approved by the chair of the legislative council and paid by vouchers and warrants drawn as provided by law from moneys continuously appropriated from the legislative department cash fund. (d) The legislative audit committee shall perform the tasks assigned to it pursuant to this section within its existing appropriations and its normal meeting schedule. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.