Reference Title: strategic program area reviews

AN ACT
AMENDING SECTIONS 35-122, 41-1275 AND 41-3504, ARIZONA REVISED STATUTES; REPEALING LAWS 1995, CHAPTER 283, SECTION 5, AS AMENDED BY LAWS 1996, CHAPTER 339, SECTION 3 AND LAWS 1997, CHAPTER 210, SECTION 39; RELATING TO STATE BUDGET PROGRAM REVIEWS.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 35-122, Arizona Revised Statutes, is amended to read:

35-122 . Strategic plans; program lists; compilation

A. Consistent with instructions issued by the governor, the administrative head of each budget unit is responsible for:

1. Developing a strategic plan for the entire budget unit. At a minimum, the plan shall extend for the current fiscal year and the two ensuing fiscal years and shall contain a mission statement, goals, objectives and performance measures for the budget unit as a whole. The performance measures shall be stated in terms that are consistent with a budget unit's goals and objectives and that emphasize results. The strategic plan shall be submitted to the governor's office of strategic planning and budgeting and to the staff of the joint legislative budget committee by April SEPTEMBER 1 of each even-numbered year.

2. Developing a strategic plan for each program identified in subsection B of this section. The plan shall use the same format as the plan required under paragraph 1. These plans shall not be submitted to the governor's office of strategic planning and budgeting and the staff of the joint legislative budget committee unless otherwise required for a STRATEGIC program authorization AREA review authorized by section 41-1275.

B. Consistent with instructions issued by the governor, the administrative head of each budget unit is responsible for developing a list of programs for the budget unit. For each program the list shall include a description, its mission statement, goals, performance measures that emphasize results and budgetary data for the current and prior fiscal year. The budgetary data shall include funding amounts, regardless of source. The list of programs shall be submitted to the governor's office of strategic planning and budgeting by April SEPTEMBER 1 of each even-numbered year. The governor's instructions shall allow budget units with a minimal number of programs to consolidate their submissions for the strategic plan required under subsection A of this section with the list of programs required under this subsection.

C. The governor's office of strategic planning and budgeting shall compile the submissions required in subsection B of this section and by July 1 NO LATER THAN FIVE DAYS AFTER THE REGULAR SESSION OF THE LEGISLATURE CONVENES of each even-numbered year shall publish a master list of programs that are performed or overseen by state government. In consultation with the staff of the joint legislative budget committee, the governor's office of strategic planning and budgeting may modify the list of programs submitted by each budget unit. The master list shall include the program description, mission statement, goals, performance measures and budgetary data. The list shall include all programs that are administered jointly by two or more budget units.

D. For purposes of this section, a program may include a subprogram as determined by the governor's office of strategic planning and budgeting and the staff of the joint legislative budget committee.

Sec. 2. Section 41-1275, Arizona Revised Statutes, is amended to read:

41-1275 . Strategic program area reviews; procedures; definition

A. In consultation with the governor's office of strategic planning and budgeting, the staff of the joint legislative budget committee shall meet with RECOMMEND TO the joint legislative budget committee before December 31 BY JANUARY 1 of each odd-numbered year to develop and prepare legislation for introduction in even-numbered years to subject programs developed under section 35-122 to a LIST OF PROGRAM AREAS SUGGESTED FOR STRATEGIC program authorization AREA review. Consistent with instructions issued by the governor's office of strategic planning and budgeting and the staff of the joint legislative budget committee, Each budget unit may submit suggestions for which of its programs should be subject to STRATEGIC program authorization AREA reviews. These suggestions shall be submitted by October 1 of each odd-numbered year. In developing legislation, The joint legislative budget committee may designate SUBPROGRAMS OR portions of particular programs to be subject to a STRATEGIC program authorization AREA review. It is the intent of the legislature not to conduct a program authorization review on a program for which funding is already eliminated.

B. The budget unit responsible for a program that is subject to program authorization review shall prepare a self-assessment of its program by April 1 of the odd-numbered year following the enactment of legislation described in subsection A of this section. The self-assessment shall address the efficiency and effectiveness of each program operation and whether its current operation is consistent with the original legislative intent. The self-assessment shall be consistent with instructions issued by the governor's office of strategic planning and budgeting and joint legislative budget committee staff and shall be submitted to the two offices. Budget units may be required to develop joint self-assessments if their programs are of a similar nature.

C. B. THE JOINT LEGISLATIVE BUDGET COMMITTEE SHALL DETERMINE THOSE PROGRAM AREAS THAT ARE SUBJECT TO STRATEGIC PROGRAM AREA REVIEW FROM THE LIST OF PROGRAM AREAS SUBMITTED. The staff of the joint legislative budget committee and the governor's office of strategic planning and budgeting shall review the program authorization self-assessment submitted by each budget unit AREAS . TO AID IN THE REVIEW, THE BUDGET UNIT RESPONSIBLE FOR THE PROGRAM THAT IS SUBJECT TO STRATEGIC PROGRAM AREA REVIEW SHALL PREPARE A SELF-ASSESSMENT OF ITS PROGRAM BY JUNE 1 OF THE ODD-NUMBERED YEAR IN WHICH THE PROGRAM IS BEING REVIEWED. THE SELF-ASSESSMENT SHALL ADDRESS THE EFFICIENCY AND EFFECTIVENESS OF EACH PROGRAM OPERATION AND WHETHER ITS CURRENT OPERATION IS CONSISTENT WITH THE ORIGINAL LEGISLATIVE INTENT. THE SELF-ASSESSMENT SHALL BE CONSISTENT WITH INSTRUCTIONS ISSUED BY THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING AND JOINT LEGISLATIVE BUDGET COMMITTEE STAFF AND SHALL BE SUBMITTED TO THE TWO OFFICES. The two offices shall evaluate the program AREAS according to agreed upon factors and shall jointly produce a report of their findings AND RECOMMENDATIONS FOR WHETHER TO RETAIN, ELIMINATE OR MODIFY FUNDING AND RELATED STATUTORY REFERENCES FOR THE PROGRAMS THAT ARE SUBJECT TO STRATEGIC PROGRAM AREA REVIEW TO THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE GOVERNOR no later than October 15 JANUARY 1 of each odd-numbered EVEN-NUMBERED year. The findings AND RECOMMENDATIONS shall INCLUDE A DESCRIPTION OF PERSONNEL, FACILITIES, EQUIPMENT AND FUNDING OF THE STRATEGIC PROGRAM AREA BY ALL BUDGET UNITS OR ENTITIES AND SHALL address the views of the two offices on the program's efficiency , and effectiveness AND NECESSITY AND WHETHER THE PROGRAM AREA SHOULD BE CONSOLIDATED INTO ONE BUDGET UNIT IF THE PROGRAM AREA IS BEING ADMINISTERED BY MORE THAN ONE BUDGET UNIT . Before the public hearing required in subsection D of this section is held, each office may independently recommend whether to retain, eliminate or modify funding and related statutory references for the programs that are subject to program authorization review.

D. C. The speaker of the house of representatives and the president of the senate shall appoint sufficient joint ASSIGN ALL STRATEGIC program authorization AREAS review committees RECOMMENDED BY THE JOINT LEGISLATIVE BUDGET COMMITTEE, PURSUANT TO SUBSECTION B OF THIS SECTION, TO THE APPROPRIATIONS COMMITTEES. THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE MAY ADDITIONALLY ASSIGN THE STRATEGIC PROGRAM AREAS TO AN APPROPRIATE STANDING COMMITTEE. THE ASSIGNED STANDING COMMITTEE SHALL HOLD AT LEAST ONE PUBLIC HEARING FOR THE PURPOSE OF RECEIVING PUBLIC INPUT AND DEVELOPING RECOMMENDATIONS TO THE APPROPRIATIONS COMMITTEES WHETHER TO RETAIN, ELIMINATE OR MODIFY FUNDING AND RELATED STATUTORY REFERENCES FOR THE STRATEGIC PROGRAM AREA SUBJECT TO REVIEW . IF THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE CHOOSE NOT TO ASSIGN THE STRATEGIC PROGRAM AREAS TO AN ADDITIONAL STANDING COMMITTEE THE APPROPRIATIONS COMMITTEE SHALL HOLD AT LEAST ONE PUBLIC HEARING FOR THE PURPOSE OF RECEIVING PUBLIC INPUT IN DEVELOPING RECOMMENDATIONS WHETHER TO RETAIN, ELIMINATE OR MODIFY FUNDING AND RELATED STATUTORY REFERENCES FOR THE STRATEGIC PROGRAM AREA SUBJECT TO REVIEW. to evaluate the program authorization review findings and any recommendations made pursuant to subsection C of this section. Each joint program authorization review committee shall have representation from members of both parties in a proportion equal to that of the political makeup of each house. In addition to the legislative members, for each committee, the governor shall appoint a private citizen with experience in cost benefit analysis, the president of the senate shall appoint a private citizen with a general business background and the speaker of the house of representatives shall appoint a private citizen. Each joint program authorization review committee may be responsible for more than one program authorization review. After receipt of the program authorization review findings, the joint program authorization review committee shall hold at least one public hearing for the purpose of recommending whether to retain, eliminate or modify funding and related statutory references for the programs subject to review. The joint program authorization review committee shall make its recommendations to the governor, the president of the senate and the speaker of the house of representatives by December 15 of each odd-numbered year. The program authorization review committee shall oversee the preparation of any proposed legislation to implement its recommendations and is responsible for the introduction of this legislation. Each joint program authorization review committee has the power of legislative subpoena pursuant to article 4 of this chapter.

E. D. For purposes of this section, "STRATEGIC PROGRAM AREA" MEANS A PROGRAM, FUNCTION OR ACTIVITY OF STATE GOVERNMENT CONDUCTED BY ONE OR MORE BUDGET UNITS OR ENTITIES, OR SUBDIVISIONS OF BUDGET UNITS OR ENTITIES, AND INCLUDES ALL PERSONNEL, FACILITIES, EQUIPMENT AND FUNDING OF THE PROGRAM, FUNCTION OR ACTIVITY, INCLUDING FEDERAL, STATE, LOCAL AND OTHER FUNDING. A STRATEGIC program AREA may include a subprogram AREA as determined by the governor's office of strategic planning and budgeting or the joint legislative budget committee staff.

Sec. 3. Section 41-3504, Arizona Revised Statutes, is amended to read:

41-3504 . Powers and duties of the agency; violation; classification

A. For budget units, the agency shall:

1. Develop, implement and maintain a coordinated statewide plan for information technology. This includes:

(a) Adopting statewide technical, coordination and security standards for information technology.

(b) Serving as statewide coordinator for information technology resources.

(c) Developing a statewide disaster recovery plan.

(d) Developing a list of approved agency projects by priority category.

(e) Developing a detailed list of information technology assets owned, leased or employed by this state.

(f) Evaluating and either approving or disapproving budget unit information technology plans. Budget units shall submit information technology plans that include quality assurance plans and disaster recovery plans to the agency each year on or before June SEPTEMBER 1. The legislative and judicial departments of state government shall submit information technology plans for information purposes.

(g) Evaluating specific information technology projects relating to the approved budget unit and statewide information technology plans. The agency shall approve or reject projects with total costs of at least twenty-five thousand dollars but not more than one million dollars and may establish conditional approval criteria including procurement purchase authority. If the total project costs exceed one million dollars the agency shall evaluate the project and make recommendations to the committee. Beginning on June 1, 1998, as part of a budget request for an information technology project that has total costs of at least twenty-five thousand dollars, a budget unit shall indicate the status of review by the agency. Projects shall not be artificially divided to avoid review by the agency.

2. Require that budget units incorporate life cycle analysis prescribed by section 41-2553 into the information technology planning, budgeting and procurement processes.

3. Require that budget units demonstrate expertise to carry out information technology plans, either by employing staff or contracting for outside services.

4. Monitor information technology projects that the agency considers to be major or critical, including expenditure and activity reports and periodic review.

5. Temporarily suspend the expenditure of monies if the agency determines that the information technology project is at risk of failing to achieve its intended results or does not comply with the requirements of this section.

6. Continuously study emergent technology and evaluate its impact on this state's system.

7. Advise each budget unit as necessary and report to the committee on an annual basis.

8. Provide to budget units, information technology consulting services it deems necessary, either directly or by procuring outside consulting services.

9. Maintain all otherwise confidential information received from a budget unit pursuant to this section as confidential.

10. Provide staff support to the committee.

11. Subject to section 35-149, accept, spend and account for grants, monies and direct payments from public or private sources and other grants of monies or property for the conduct of programs that it deems consistent with the overall purposes and objectives of the agency.

12. Adopt rules it deems necessary or desirable to further the objectives and programs of the agency.

13. Formulate policies, plans and programs to effectuate the purposes of the agency.

14. Advise and make recommendations to the governor and the legislature on all matters concerning its objectives.

15. Contract and enter into interagency and intergovernmental agreements pursuant to title 11, chapter 7, article 3 with any public or private party.

16. Have an official seal that shall be judicially noticed.

B. The agency shall advise the judicial and legislative branches of state government concerning information technology.

C. The agency may examine all books, papers, records and documents in the office of any budget unit and may require any state officer of the budget unit to furnish information or statements necessary to carry out the provisions of this chapter.

D. The director, any member of the director's staff or any employee who knowingly divulges or makes known in any manner not permitted by law any particulars of any confidential record, document or information is guilty of a class 5 felony.

Sec. 4. Repeal

Laws 1995, chapter 283, section 5, as amended by Laws 1996, chapter 339, section 3 and Laws 1997, chapter 210, section 39, is repealed.

Sec. 5. Initial strategic program area reviews

Notwithstanding the dates of implementation and agency self-assessments of the strategic program area reviews established by this act, the initial joint report required by section 41-1275, subsection B, Arizona Revised Statutes, as amended by this act, shall be distributed by January 1, 2000 and shall cover the following program areas for review during the 2000 legislative session:

1. Arizona ports of entry.

2. Domestic violence programs.

3. University extended education programs.

APPROVED BY THE GOVERNOR MAY 4, 1999.

FILED IN TNE OFFICE OF THE SECRETARY OF STATE MAY 4, 1999.