SECOND REGULAR SESSION
HOUSE BILL NO. 1029
96TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES FLANIGAN (Sponsor) AND ALLEN (Co-sponsor).
4091L.01I D. ADAM CRUMBLISS, Chief Clerk
To repeal sections 23.140, 23.150, 23.160, 23.170, 23.180, 23.190, 23.200, and 23.265, RSMo, and to enact in lieu thereof seven new sections relating to the oversight subcommittee of the committee on legislative research.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 23.140, 23.150, 23.160, 23.170, 23.180, 23.190, 23.200, and 23.265, RSMo, are repealed and seven new sections enacted in lieu thereof, to be known as sections 23.140, 23.150, 23.160, 23.170, 23.180, 23.190, and 23.265, to read as follows:
23.140. 1. Legislation, with the exception of appropriation bills, introduced into either house of the general assembly shall, before being acted upon, be submitted to the oversight division of the committee on legislative research for the preparation of a fiscal note. The staff of the oversight division shall prepare a fiscal note, examining the items contained in subsection 2 and such additional items as may be provided either by joint rule of the house and senate or by resolution adopted by the committee or the oversight subcommittee.
2. The fiscal note shall state:
(1) The cost of the proposed legislation to the state for the next two fiscal years;
(2) Whether or not the proposed legislation will establish a program or agency that will duplicate an existing program or agency;
(3) Whether or not there is a federal mandate for the program or agency;
(4) Whether or not the proposed program or agency will have significant direct fiscal impact upon any political subdivision of the state;
(5) Whether or not any new physical facilities will be required; and
(6) Whether or not the proposed legislation will have an economic impact on small businesses. For the purpose of this subdivision "small business" means a corporation, partnership, sole proprietorship or other business entity, including its affiliates, that:
(a) Is independently owned and operated; and
(b) Employs fifty or fewer full-time employees.
3. The fiscal note for a bill shall accompany the bill throughout its course of passage. No member of the general assembly, lobbyist or persons other than oversight division staff members shall participate in the preparation of any fiscal note unless the communication is in writing, with a duplicate to be filed with the fiscal note or unless requested for information by the fiscal analyst preparing the note. Violations of this provision shall be reported to the chairman of the legislative research committee and subject the fiscal note and proposed bill to subcommittee review. Once a fiscal note has been signed and approved by the director of the oversight division, the note shall not be changed or revised without prior approval of the chairman of the legislative research committee, except to reflect changes made in the bill it accompanies, or to correct patent typographical, clerical or drafting errors that do not involve changes of substance, nor shall substitution be made therefor. Appeals to revise, change or to substitute a fiscal note shall be made in writing by a member of the general assembly to the chairman of the legislative research committee and a hearing before the committee or subcommittee shall be granted as soon as possible. Any member of the general assembly, upon presentation of new or additional material, may, within three legislative days after the hearing on the request to revise, change or substitute a fiscal note, request one rehearing before the full committee to further consider the requested change.
The subcommittee, if satisfied that new or additional material has been presented, may recommend such rehearing to the full committee, and the rehearing shall be held as soon as possible thereafter.
4. The director of the division, hereinafter provided for, or the director's designees, shall seek information and advice from the affected department, division or agency of state government and shall call upon the research staffs of the house of representatives and of the senate, and upon the staffs of the house and senate appropriations committees for assistance in carrying out fiscal notes and [auditing functions and duties] evaluations of programs selected by the committee, during the interim, and each staff shall supply such information or advice as it [may possess] deems appropriate in response to the inquiry. The state auditor shall, upon request, cooperate and provide assistance in the conduct of audits and the preparation of reports made in connection therewith.
23.150. 1. The committee on legislative research shall organize an oversight division to prepare fiscal notes and to conduct [management audits and] program [audits] evaluations of state agencies, including program evaluations involving budget transparency and accountability. The committee may form a subcommittee of not less than six members to provide direct supervision of the personnel and practices of the division. The subcommittee shall consist of one-half of the members appointed by the [chairman] chair from the house which he or she represents and one-half of the members appointed by the vice [chairman] chair from the house which he or she represents.
2. Within the limits of the appropriations made for this division, the committee shall employ a director of the oversight division and other personnel as it deems necessary. The director shall be qualified by training and experience to conduct such [audits] evaluations, and he or she shall be directly responsible for those activities. The director of the oversight division, with the consent of the joint committee, may employ personnel necessary to carry out the duties prescribed in this chapter. Persons employed to work in the oversight division shall be professional persons possessing a wide knowledge and demonstrated expertise in governmental programming and financial planning, in conducting program review evaluations and analytic studies, and of federal, state, and local government budgetary processes, laws and regulations of the state of Missouri. [Office space, furniture and equipment formerly assigned to the committee on state fiscal affairs, and appropriations made therefor, shall be transferred to the committee on legislative research.]
23.160. 1. [As used in this chapter, the term "management audit" means a postaudit which determines, with regard to the purpose, functions, and duties of an audited agency:
(1) Whether the agency is managing and utilizing its resources in an economical and efficient manner; and
(2) Which identifies causes of inefficiencies or uneconomical practices including inadequacies in the use and management of information systems, internal and administrative procedures, organizational structure, use of resources, allocation of personnel, and purchasing policies.
2.] As used in this chapter, the term "program [audit"] evaluation" means a [postaudit] study which determines and evaluates program performance according to program objectives, responsibilities, and duties as set forth by statute or regulation. Program [audits] evaluations, in accordance with generally accepted program evaluation standards, shall determine:
(1) Whether the program is being performed and administered as authorized or required by law, and whether this action conforms with statutory intent;
(2) Whether the objectives and intended benefits are being achieved, and whether [efficiently and effectively] the absence of such achievements suggest the need for correction or additional legislation;
(3) Benefits derived from any program in relation to the expenditures made therefor; and
(4) Whether the program duplicates, overlaps, or conflicts with any other state program. [A program audit may include determinations within the scope of a management audit to the extent necessary or appropriate to the conduct of a particular program audit.
3.] 2. As used in this chapter, the term "resources" includes appropriated funds, federal funds, grants, and personnel, and also includes equipment and space, whether assigned, owned or leased.
[4.] 3. As used in this chapter, the term "agency" includes each department and office within the executive branch of government and each identifiable unit thereof, including institutions of higher learning, and each identifiable unit of the legislative and judicial branches of government.
23.170. 1. The oversight division of the committee on legislative research shall, pursuant to a duly adopted concurrent resolution of the general assembly, or pursuant to a resolution adopted by the committee on legislative research, conduct [management audits and] program [audits] evaluations of agencies as directed by any such resolution.
2. The staff of any agency subject to a [management or] program [audit] evaluation shall fully cooperate with the staff of the oversight division and shall provide all necessary information and assistance for such an [audit] evaluation. All records of an agency, unless otherwise expressly declared by law to be confidential, may be inspected by the oversight division staff while conducting the [audit] evaluation, and the agency subject to the [audit] evaluation shall afford the oversight division staff with ample opportunity to observe agency operations.
3. All [audits] evaluations shall be completed within one year unless an extension is authorized by the committee, but progress reports shall be made to the committee at least [monthly] quarterly. [The subcommittee supervising the oversight division shall meet monthly to review progress reports, hear requests for changes in fiscal notes, and provide supervision for the oversight division staff.]
4. Any member of the general assembly and any committee of either house of the general assembly may submit requests for [audits] program evaluations to the committee on legislative research, and any agency may request an [audit] evaluation of its operations. The director of the division shall present program evaluations completed during the previous legislative interim period to appropriate committees of each chamber during early hearings of those committees at the next regular session.
23.180. The committee may:
(1) Subpoena and examine witnesses by subpoena issued under the hand of the speaker of the house or the president pro tem of the senate and may require the appearance of any person and the production of any paper or document in the same manner;
(2) Cause witnesses appearing before the committee or [the] its staff [of the division] to give testimony under oath;
(3) Require that testimony given or a record of the proceedings of any hearing be recorded by an official court reporter or other competent person, under oath, in writing or by electronic, magnetic, or mechanical sound or video recording devices. Any such transcript or record, when certified by the reporter or recorder, shall be prima facie a correct statement of the testimony or proceedings.
23.190. 1. In making [audits] program evaluations the division shall make recommendations and suggestions, in writing, to the personnel of the agency being [audited] evaluated. Such personnel shall be given an opportunity to respond, in writing, to those recommendations and suggestions. Thereafter, as soon as practicable after completion of the [audit] evaluation, the committee shall issue a public report of the [audit] evaluation. The report shall contain recommendations for changes in practices and policies as well as recommendations for changes in statutes and regulations, and shall contain the response of the agency involved. Each report shall be a public record and shall be signed by the committee [chairman] chair. Each report shall be presented to the governor and the agency involved. Copies may be made available to members of the general assembly and to the general public. The committee may charge a fee to recover publication costs for copies made available to the general public.
2. One year after completion of each [audit] evaluation, the oversight division shall review the operations of the agency [audited] evaluated to determine whether or not there has been substantial compliance with the recommendations contained in the report, and if not, a further review shall be conducted at the end of another year. In each instance a further report shall be made and distributed in the same manner as an initial report is made and distributed.
23.265. 1. At the beginning of each regular session of the general assembly, the committee shall present to the general assembly and the governor a report on the programs scheduled to be sunset.
2. In the report, the committee shall include:
(1) Its specific findings regarding each of the criteria prescribed by section 23.268;
(2) Its recommendations based on the matters prescribed by section 23.271; and
(3) Any other information the committee deems necessary for a complete evaluation of the program.
3. The director of the oversight division shall present such reports to the house budget committee and the senate appropriations committee at such time as requested by the chairs of such committees.
[23.200. The staff of the committee on legislative research shall prepare a transfer-revision bill to be submitted to the ninetieth general assembly to revise the statutes so as to reflect the changes made by or pursuant to this act; except that, the committee on legislative research shall use fully the provisions of section 3.060 where such provisions will suffice. At such time as all statutory revision changes required pursuant to this act have gone into effect the revisor of statutes may prepare legislation to repeal this section.]