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HF 418

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 04/24/2012 05:26pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/09/2011
1st Engrossment Posted on 03/16/2011
2nd Engrossment Posted on 04/23/2012
3rd Engrossment Posted on 04/24/2012

Current Version - 3rd Engrossment

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A bill for an act
relating to state government; proposing the Back Office Consolidation Act;
requiring a benchmarking study on centralizing accounting, financial reporting,
procurement, fleet services, human resources, and payroll functions in the
Department of Administration; requiring a report on improvement initiatives.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text beginCITATION.
new text end

new text begin This act may be known as the "Back Office Consolidation Act."
new text end

Sec. 2. new text beginBENCHMARKING STUDIES.
new text end

new text begin (a) The commissioner of the Department of Administration must use general funds
previously appropriated to the commissioner for the biennium ending June 30, 2013, to
contract for a benchmark study resulting in a benchmark report on the efficiency and
effectiveness of the following back office functions: accounting; finance; procurement;
and human resources, including payroll. The benchmark report shall be completed by
November 1, 2012, and shall:
new text end

new text begin (1) include an objective comparison of the performance of the state to peer groups
and world-class organizations for all business processes in the back office functions
specified in this paragraph;
new text end

new text begin (2) quantify performance gaps;
new text end

new text begin (3) identify hidden costs;
new text end

new text begin (4) identify improvement initiatives for the state to increase efficiency and
effectiveness;
new text end

new text begin (5) suggest a prioritized ranking of the improvement initiatives;
new text end

new text begin (6) identify and implement immediate opportunities for savings; and
new text end

new text begin (7) evaluate a variety of future shared service models, including in-house, co-source,
and outsourced.
new text end

new text begin At the request of the chair and vice chair of the Legislative Coordinating
Commission, the commissioner must include in the department's benchmarking study
an evaluation of the systems employed by the senate, the house of representatives, and
the Legislative Coordinating Commission.
new text end

new text begin (b) The commissioner of administration shall provide copies of the benchmark
report to the chairs and ranking minority members on the committees in the senate and
house of representatives with primary jurisdiction over the Department of Administration.
new text end

Sec. 3. new text beginIMPROVEMENT INITIATIVES.
new text end

new text begin (a) By January 15, 2013, the commissioner of administration shall submit a report to
the chairs and ranking minority members on the committees in the senate and house of
representatives with primary jurisdiction over the Department of Administration including:
new text end

new text begin (1) a plan for implementing the improvement initiatives identified in the
benchmarking report during the remainder of the biennium ending June 30, 2013, and
during future bienniums; and
new text end

new text begin (2) any draft legislation that is required to implement the improvements.
new text end

new text begin (b) The commissioner of administration, in consultation with the commissioner of
management and budget and affected agency heads, must identify general fund savings
that will occur in executive branch agencies during the biennium ending June 30, 2013, as
a result of implementing initiatives identified in the benchmarking report and as a result of
consolidation of executive branch information technology services after July 1, 2011. The
commissioner of administration may transfer general fund appropriations from agencies
in which the savings occurred to the Department of Administration, in an aggregate
amount not to exceed the cost of the contract for the benchmark study in section 2. The
incremental cost of a benchmarking study implemented at the request of the Legislative
Coordinating Commission must be paid for by the commission, in cooperation with the
house of representatives and the senate.
new text end

Sec. 4. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment.
new text end