SB3699 97TH GENERAL ASSEMBLY

LRB097 19476 HLH 64729 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3699

Introduced 2/10/2012, by Sen. Linda Holmes

SYNOPSIS AS INTRODUCED:

New Act
5 ILCS 315/15	from Ch. 48, par. 1615
20 ILCS 415/26 new
30 ILCS 105/5.811 new
30 ILCS 105/6z-93 new

Creates the Division of Financial Reporting Act. Provides that the Division will serve under the direction of the State Chief Information Officer, subject to the oversight of the Board of Trustees. Sets forth the responsibilities of the Division, including, but not limited to: implementing a modernized financial accounting system for the State of Illinois in the form of an Enterprise Resource Planning or "ERP" System and conducting management and operational evaluations of each executive branch agency. Creates a Board of Trustees to oversee the Division. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Division of Financial Reporting Act.

Section 5. Findings. The General Assembly finds that:

(1) Addressing the State's inability to produce Generally Accepted Accounting Principles (GAAP)-compliant financial reports in a timely manner is an urgent priority.

(2) The Auditor General's recent findings on the State's financial accounting systems provide a unique opportunity for key stakeholders to make policy choices that can materially improve the State's likelihood of success in addressing this problem.

(3) The State's problems in financial reporting represent the cumulative effect of a multitude of systemic challenges, including: archaic technology, insufficient staff resources in the areas of accounting, technology, training, financial analysis, and other fields, disparate approaches to financial reporting among dozens of agencies.

(4) Implementing a modern, agile process for collecting, assembling, in a uniform fashion, financial information such that the State can produce timely, GAAP-compliant financial reports through an Enterprise Resource Planning (ERP) system will involve not only significant monetary investment in software acquisition and implementation services, but also, preliminarily, changes to the structure and internal management of State government.

Section 10. Division of Financial Reporting; creation. There is hereby created a Division of Financial Reporting. The Division will serve under the direction of the State Chief Information Officer, subject to the oversight of the Board of Trustees. The Division shall have the following responsibilities:

(1) to implement a modernized financial accounting system for the State of Illinois in the form of an Enterprise Resource Planning or "ERP" System;

(2) to assemble a group of management professionals, having both public and private sector experience, in addition to experience in ERP implementation and financial reporting needs of agencies in the executive branch; the Division shall be staffed with professionals having high-level skill sets in accounting, financial reporting and management, enterprise systems implementation, and business process reengineering; these professionals will provide assistance to executive branch agencies engaged in financial reporting, technology, and ERP implementation;

(3) to provide certification and continuing education in the areas of accounting financial reporting and technology;

(4) to conduct management and operational evaluations of each executive branch agency; and to submit a recommended plan for personnel changes, operational changes, and policy modifications to the Office of the Governor, the General Assembly, and the Comptroller's office; all executive branch agencies directly responsible to the Governor shall align their respective technology strategies and operations to the plan and render full cooperation in its implementation

(5) to work, in cooperation with the Executive Ethics Commission, the Chief Procurement Officers appointed pursuant to P.A. 96-795, the Department of Central Management Services, the Office of the Comptroller, and other stakeholders on an optimal procurement strategy for acquiring the software and services for ERP implementation and for the implementation of other enterprise wide systems;

(6) to employ the individuals that are necessary to carry out the duties and functions of the Office;

(7) to obligate and expend monetary resources essential for carrying out the duties and responsibilities of the Office;

(8) to work in cooperation with the Governor's Office of Management and Budget, agency directors, and the Office of the Comptroller to address agency needs and the delivery of timely information;

(9) to assemble a team of management professionals as staff for the Division and for the performance of other duties set forth in this Act;

(10) to undertake any other act essential for the performance of the duties and responsibilities of the Office.

(11) to direct the State's financial reporting and related technology policies, practices, and objectives with respect to all State agencies directly responsible to the Governor.

Section 15. Board of Trustees. There is hereby created a Board of Trustees for the Division, consisting of 7 members. The Governor, the Comptroller, the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the Senate President, and the Senate Minority Leader shall each appoint one. The Governor and the Comptroller will each designate a person to serve as co-chairperson. The purpose of the Board of Trustees is to ensure transparency, open communication, and ongoing collaboration between the legislative and executive branches, as well as within and among the executive branch constitutional officers and agencies. At each meeting the Director of the Division of Financial Reporting will present a detailed report to the trustees outlining all the activities of the Division during the preceding months and will solicit input advice and consultation from the trustees. Meetings of the board shall be subject to the provisions of the Open Meetings Act.

Section 20. Exemptions. Notwithstanding any laws, rules, or regulations to the contrary, the Division of Financial Reporting is exempt from all provisions of the Personnel Code and the Illinois Public Labor Relations Act.

Section 30. Cooperation. All executive branch agencies must render full cooperation to the Division and its employees.

Section 50. The Illinois Public Labor Relations Act is amended by changing Section 15 as follows:

(5 ILCS 315/15) (from Ch. 48, par. 1615)

Sec. 15. Act Takes Precedence.

(a) In case of any conflict between the provisions of this Act and any other law (other than Section 5 of the State Employees Group Insurance Act of 1971, and other than the changes made to the Illinois Pension Code by this amendatory Act of the 96th General Assembly, and other than the Division of Financial Reporting Act), executive order or administrative regulation relating to wages, hours and conditions of employment and employment relations, the provisions of this Act or any collective bargaining agreement negotiated thereunder shall prevail and control. Nothing in this Act shall be construed to replace or diminish the rights of employees established by Sections 28 and 28a of the Metropolitan Transit Authority Act, Sections 2.15 through 2.19 of the Regional Transportation Authority Act. The provisions of this Act are subject to Section 5 of the State Employees Group Insurance Act of 1971. Nothing in this Act shall be construed to replace the necessity of complaints against a sworn peace officer, as defined in Section 2(a) of the Uniform Peace Officer Disciplinary Act, from having a complaint supported by a sworn affidavit.

(b) Except as provided in subsection (a) above, any collective bargaining contract between a public employer and a labor organization executed pursuant to this Act shall supersede any contrary statutes, charters, ordinances, rules or regulations relating to wages, hours and conditions of employment and employment relations adopted by the public employer or its agents. Any collective bargaining agreement entered into prior to the effective date of this Act shall remain in full force during its duration.

(c) It is the public policy of this State, pursuant to paragraphs (h) and (i) of Section 6 of Article VII of the Illinois Constitution, that the provisions of this Act are the exclusive exercise by the State of powers and functions which might otherwise be exercised by home rule units. Such powers and functions may not be exercised concurrently, either directly or indirectly, by any unit of local government, including any home rule unit, except as otherwise authorized by this Act.

(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)

Section 55. The Personnel Code is amended by adding Section 26 as follows:

(20 ILCS 415/26 new)

Sec. 26. Division of Financial Reporting Act. This Code is subject to the provisions of the Division of Financial Reporting Act.

Section 90. The State Finance Act is amended by adding Sections 5.811 and 6z-93 as follows:

(30 ILCS 105/5.811 new)

Sec. 5.811. The Division of Financial Reporting Revolving Fund.

(30 ILCS 105/6z-93 new)

Sec. 6z-93. Division of Financial Reporting Revolving Fund; creation. There is hereby created in the State treasury a revolving fund as a dedicated fund to receive funds payable to the Division of Financial Reporting for services provided to State agencies. Moneys may be expended from the Fund for the operations of the Division of Financial Reporting.

Section 99. Effective date. This Act takes effect upon becoming law.