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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||||||||||
5 | Division of Financial Reporting Act. | ||||||||||||||||||||||||||||||||
6 | Section 5. Findings. The General Assembly finds that: | ||||||||||||||||||||||||||||||||
7 | (1) Addressing the State's inability to produce | ||||||||||||||||||||||||||||||||
8 | Generally Accepted Accounting Principles (GAAP)-compliant | ||||||||||||||||||||||||||||||||
9 | financial reports in a timely manner is an urgent priority. | ||||||||||||||||||||||||||||||||
10 | (2) The Auditor General's recent findings on the | ||||||||||||||||||||||||||||||||
11 | State's financial accounting systems provide a unique | ||||||||||||||||||||||||||||||||
12 | opportunity for key stakeholders to make policy choices | ||||||||||||||||||||||||||||||||
13 | that can materially improve the State's likelihood of | ||||||||||||||||||||||||||||||||
14 | success in addressing this problem. | ||||||||||||||||||||||||||||||||
15 | (3) The State's problems in financial reporting | ||||||||||||||||||||||||||||||||
16 | represent the cumulative effect of a multitude of systemic | ||||||||||||||||||||||||||||||||
17 | challenges, including: archaic technology, insufficient | ||||||||||||||||||||||||||||||||
18 | staff resources in the areas of accounting, technology, | ||||||||||||||||||||||||||||||||
19 | training, financial analysis, and other fields, disparate | ||||||||||||||||||||||||||||||||
20 | approaches to financial reporting among dozens of | ||||||||||||||||||||||||||||||||
21 | agencies. | ||||||||||||||||||||||||||||||||
22 | (4) Implementing a modern, agile process for | ||||||||||||||||||||||||||||||||
23 | collecting, assembling, in a uniform fashion, financial |
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1 | information such that the State can produce timely, | ||||||
2 | GAAP-compliant financial reports through an Enterprise | ||||||
3 | Resource Planning (ERP) system will involve not only | ||||||
4 | significant monetary investment in software acquisition | ||||||
5 | and implementation services, but also, preliminarily, | ||||||
6 | changes to the structure and internal management of State | ||||||
7 | government. | ||||||
8 | Section 10. Division of Financial Reporting; creation. | ||||||
9 | There is hereby created a Division of Financial Reporting. The | ||||||
10 | Division will serve under the direction of the State Chief | ||||||
11 | Information Officer, subject to the oversight of the Board of | ||||||
12 | Trustees. The Division shall have the following | ||||||
13 | responsibilities: | ||||||
14 | (1) to implement a modernized financial accounting | ||||||
15 | system for the State of Illinois in the form of an | ||||||
16 | Enterprise Resource Planning or "ERP" System; | ||||||
17 | (2) to assemble a group of management professionals, | ||||||
18 | having both public and private sector experience, in | ||||||
19 | addition to experience in ERP implementation and financial | ||||||
20 | reporting needs of agencies in the executive branch; the | ||||||
21 | Division shall be staffed with professionals having | ||||||
22 | high-level skill sets in accounting, financial reporting | ||||||
23 | and management, enterprise systems implementation, and | ||||||
24 | business process reengineering; these professionals will | ||||||
25 | provide assistance to executive branch agencies engaged in |
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1 | financial reporting, technology, and ERP implementation; | ||||||
2 | (3) to provide certification and continuing education | ||||||
3 | in the areas of accounting financial reporting and | ||||||
4 | technology; | ||||||
5 | (4) to conduct management and operational evaluations | ||||||
6 | of each executive branch agency; and to submit a | ||||||
7 | recommended plan for personnel changes, operational | ||||||
8 | changes, and policy modifications to the Office of the | ||||||
9 | Governor, the General Assembly, and the Comptroller's | ||||||
10 | office; all executive branch agencies directly responsible | ||||||
11 | to the Governor shall align their respective technology | ||||||
12 | strategies and operations to the plan and render full | ||||||
13 | cooperation in its implementation | ||||||
14 | (5) to work, in cooperation with the Executive Ethics | ||||||
15 | Commission, the Chief Procurement Officers appointed | ||||||
16 | pursuant to P.A. 96-795, the Department of Central | ||||||
17 | Management Services, the Office of the Comptroller, and | ||||||
18 | other stakeholders on an optimal procurement strategy for | ||||||
19 | acquiring the software and services for ERP implementation | ||||||
20 | and for the implementation of other enterprise wide | ||||||
21 | systems; | ||||||
22 | (6) to employ the individuals that are necessary to | ||||||
23 | carry out the duties and functions of the Office; | ||||||
24 | (7) to obligate and expend monetary resources | ||||||
25 | essential for carrying out the duties and responsibilities | ||||||
26 | of the Office; |
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1 | (8) to work in cooperation with the Governor's Office | ||||||
2 | of Management and Budget, agency directors, and the Office | ||||||
3 | of the Comptroller to address agency needs and the delivery | ||||||
4 | of timely information; | ||||||
5 | (9) to assemble a team of management professionals as | ||||||
6 | staff for the Division and for the performance of other | ||||||
7 | duties set forth in this Act; | ||||||
8 | (10) to undertake any other act essential for the | ||||||
9 | performance of the duties and responsibilities of the | ||||||
10 | Office. | ||||||
11 | (11) to direct the State's financial reporting and | ||||||
12 | related technology policies, practices, and objectives | ||||||
13 | with respect to all State agencies directly responsible to | ||||||
14 | the Governor. | ||||||
15 | Section 15. Board of Trustees. There is hereby created a | ||||||
16 | Board of Trustees for the Division, consisting of 7 members. | ||||||
17 | The Governor, the Comptroller, the Speaker of the House of | ||||||
18 | Representatives, the Minority Leader of the House of | ||||||
19 | Representatives, the Senate President, and the Senate Minority | ||||||
20 | Leader shall each appoint one. The Governor and the Comptroller | ||||||
21 | will each designate a person to serve as co-chairperson. The | ||||||
22 | purpose of the Board of Trustees is to ensure transparency, | ||||||
23 | open communication, and ongoing collaboration between the | ||||||
24 | legislative and executive branches, as well as within and among | ||||||
25 | the executive branch constitutional officers and agencies. At |
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1 | each meeting the Director of the Division of Financial | ||||||
2 | Reporting will present a detailed report to the trustees | ||||||
3 | outlining all the activities of the Division during the | ||||||
4 | preceding months and will solicit input advice and consultation | ||||||
5 | from the trustees. Meetings of the board shall be subject to | ||||||
6 | the provisions of the Open Meetings Act. | ||||||
7 | Section 20. Exemptions. Notwithstanding any laws, rules, | ||||||
8 | or regulations to the contrary, the Division of Financial | ||||||
9 | Reporting is exempt from all provisions of the Personnel Code | ||||||
10 | and the Illinois Public Labor Relations Act. | ||||||
11 | Section 30. Cooperation. All executive branch agencies | ||||||
12 | must render full cooperation to the Division and its employees.
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13 | Section 50. The Illinois Public Labor Relations Act is | ||||||
14 | amended by changing Section 15 as follows:
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15 | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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16 | Sec. 15. Act Takes Precedence. | ||||||
17 | (a) In case of any conflict between the
provisions of this | ||||||
18 | Act and any other law (other than Section 5 of the State | ||||||
19 | Employees Group Insurance Act of 1971 , and other than the | ||||||
20 | changes made to the Illinois Pension Code by this amendatory | ||||||
21 | Act of the 96th General Assembly , and other than the Division | ||||||
22 | of Financial Reporting Act ), executive order or administrative
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1 | regulation relating to wages, hours and conditions of | ||||||
2 | employment and employment
relations, the provisions of this Act | ||||||
3 | or any collective bargaining agreement
negotiated thereunder | ||||||
4 | shall prevail and control.
Nothing in this Act shall be | ||||||
5 | construed to replace or diminish the
rights of employees | ||||||
6 | established by Sections 28 and 28a of the Metropolitan
Transit | ||||||
7 | Authority Act, Sections 2.15 through 2.19 of the Regional | ||||||
8 | Transportation
Authority Act. The provisions of this Act are | ||||||
9 | subject to Section 5 of the State Employees Group Insurance Act | ||||||
10 | of 1971. Nothing in this Act shall be construed to replace the | ||||||
11 | necessity of complaints against a sworn peace officer, as | ||||||
12 | defined in Section 2(a) of the Uniform Peace Officer | ||||||
13 | Disciplinary Act, from having a complaint supported by a sworn | ||||||
14 | affidavit.
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15 | (b) Except as provided in subsection (a) above, any | ||||||
16 | collective bargaining
contract between a public employer and a | ||||||
17 | labor organization executed pursuant
to this Act shall | ||||||
18 | supersede any contrary statutes, charters, ordinances, rules
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19 | or regulations relating to wages, hours and conditions of | ||||||
20 | employment and
employment relations adopted by the public | ||||||
21 | employer or its agents. Any collective
bargaining agreement | ||||||
22 | entered into prior to the effective date of this Act
shall | ||||||
23 | remain in full force during its duration.
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24 | (c) It is the public policy of this State, pursuant to | ||||||
25 | paragraphs (h)
and (i) of Section 6 of Article VII of the | ||||||
26 | Illinois Constitution, that the
provisions of this Act are the |
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1 | exclusive exercise by the State of powers
and functions which | ||||||
2 | might otherwise be exercised by home rule units. Such
powers | ||||||
3 | and functions may not be exercised concurrently, either | ||||||
4 | directly
or indirectly, by any unit of local government, | ||||||
5 | including any home rule
unit, except as otherwise authorized by | ||||||
6 | this Act.
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7 | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .)
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8 | Section 55. The Personnel Code is amended by adding Section | ||||||
9 | 26 as follows: | ||||||
10 | (20 ILCS 415/26 new) | ||||||
11 | Sec. 26. Division of Financial Reporting Act. This Code is | ||||||
12 | subject to the provisions of the Division of Financial | ||||||
13 | Reporting Act. | ||||||
14 | Section 90. The State Finance Act is amended by adding | ||||||
15 | Sections 5.811 and 6z-93 as follows: | ||||||
16 | (30 ILCS 105/5.811 new) | ||||||
17 | Sec. 5.811. The Division of Financial Reporting Revolving | ||||||
18 | Fund. | ||||||
19 | (30 ILCS 105/6z-93 new) | ||||||
20 | Sec. 6z-93. Division of Financial Reporting Revolving | ||||||
21 | Fund; creation. There is hereby created in the State treasury a |
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1 | revolving fund as a dedicated fund to receive funds payable to | ||||||
2 | the Division of Financial Reporting for services provided to | ||||||
3 | State agencies. Moneys may be expended from the Fund for the | ||||||
4 | operations of the Division of Financial Reporting. | ||||||
5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.
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