BILL NUMBER: SB 500 AMENDED 08/31/93 BILL TEXT AMENDED IN ASSEMBLY AUGUST 31, 1993 AMENDED IN ASSEMBLY AUGUST 19, 1993 AMENDED IN ASSEMBLY JULY 15, 1993 AMENDED IN SENATE JUNE 8, 1993 AMENDED IN SENATE MAY 18, 1993 AMENDED IN SENATE APRIL 15, 1993 INTRODUCED BY Senator Hill FEBRUARY 25, 1993 An act to {- add Section 13337.1 to, and to -} add Chapter 8 (commencing with Section 11800) to Part 1 of Division 3 of Title 2 of, the Government Code, relating to state agencies and departments, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 500, as amended, Hill. Performance and Results Act of 1993. Existing law does not provide a program for state agencies and departments relating to improving the delivery of governmental services through the use of strategic planning and performance measurement. This bill would enact the Performance and Results Act of 1993 that would require the Department of Finance to develop a performance budgeting pilot project, in accordance with specified principles, involving {+ at least +} 4 state departments, {+ including the +} Steven P. Teale Consolidated Data Center, {+ the +} Department of Parks and Recreation, {+ the +} Department of General Services, and {+ the +} Department of Consumer Affairs, {+ or other departments substituted by the Department of Finance, +} to be implemented during the 1994-95 fiscal year. {- It would further require that budget contracts entered into pursuant to the act be included in the Governor's Budget. -} This bill would require the Department of Finance to submit a report to the Chairperson of the Joint Legislative Budget Committee on or before January 1, 1996, on the pilot program, containing specified items of information. {- The bill would also authorize the Director of the Departments of Finance, General Services, or Personnel Administration to delegate, by means of a written agreement, his or her authority, duties, and responsibilities authorized by statute or regulation to one or more of the specified 4 state departments for purposes of implementing the pilot project, notwithstanding any other provision of law. -} The bill would {- , in addition, -} {+ also +} declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Chapter 8 (commencing with Section 11800) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 8. THE PERFORMANCE AND RESULTS ACT OF 1993 Article 1. General Provisions 11800. This chapter shall be known and may be cited as the Performance and Results Act of 1993. 11801. The Legislature finds and declares the following: (a) The Legislature has an interest in improving the delivery of governmental services through the use of strategic planning and performance measurement. (b) Strategic plans and budget contracts will provide managerial accountability and flexibility to state agencies and departments that participate in a performance budgeting pilot program. Article 2. Pilot Project 11805. The Department of Finance shall develop a performance budgeting pilot project, involving {+ at least +} four {- departments: -} {+ departments, including +} the Steven P. Teale Consolidated Data Center, the Department of Parks and Recreation, the Department of General Services, and the Department of Consumer Affairs {+ , or other departments substituted by the Department of Finance +} , to be implemented during the 1994-95 fiscal year. The pilot project shall be developed by the department in accordance with the following principles: (a) Strategic planning is central. (b) Outcome measures are the primary focus of management accountability. (c) Productivity benchmarks measure progress toward strategic goals. (d) Performance budgeting may work in conjunction with total quality management, which emphasizes an orientation toward customer service and quality improvement. (e) Budget contracts between the Legislature and the executive branch require departments to deliver specified outcomes for a specified level of resources. (f) Budget contracts shall include evaluation criteria, and shall specify "gainsharing" provisions, in which 50 percent of savings resulting from innovation are reinvested in the program. (g) Managers are provided sufficient operational flexibility to achieve stated outcomes. (h) Legislative involvement is critical and is appropriately focused on strategic planning and performance outcomes. (i) Innovation is rewarded, not punished. {- 11806. Notwithstanding any other provision of law, for purposes of implementing the pilot project, the Director of the Departments of Finance, General Services, or Personnel Administration may delegate, by means of a written agreement, his or her authority, duties, and responsibilities authorized by statute or regulation to one or more of the four state departments specified in Section 11805. -} {+ 11806. Budget contracts entered into pursuant to Section 11805 shall be reviewed by the fiscal subcommittees of the Assembly and the Senate. +} 11807. The Department of Finance shall evaluate the pilot program and submit a report to the Chairperson of the Joint Legislative Budget Committee on or before January 1, 1996. The evaluation shall determine the extent to which performance budgeting results in a more cost-effective and innovative provision of government {- services compared to traditional budgeting methods -} {+ services +} . The evaluation also shall {- list the savings achieved by -} {+ report on the gainsharing rewards to +} each department in the program and the specific innovation which brought about the savings. {- SEC. 2. Section 13337.1 is added to the Government Code, to read: 13337.1. Budget contracts entered into pursuant to the Performance and Results Act of 1993 (Chapter 8 (commencing with Section 11800) of Part 1) shall be included in the Governor's Budget. SEC. 3. -} {+ SEC. 2. +} This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order for the Department of Finance to develop the structure and criteria for a performance budgeting pilot project for purposes of {- inclusion of its projected cost in the Governor's Budget for -} {+ implementation in +} fiscal year 1994-95, it is necessary that this act take effect immediately.