Bill Text: MN HF418 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Back Office Consolidation Act proposed; benchmarking study required on centralizing accounting, financial reporting, procurement, fleet services, human resources, and payroll functions in the Department of Administration; and report on improvement initiatives required.
Spectrum: Moderate Partisan Bill (Republican 8-1)
Status: (Engrossed - Dead) 2012-04-28 - Senate conferees Daley; Benson; Bonoff [HF418 Detail]
Download: Minnesota-2011-HF418-Engrossed.html
1.2relating to state government; proposing the Back Office Consolidation Act;
1.3requiring a benchmarking study on centralizing accounting, financial reporting,
1.4procurement, fleet services, human resources, and payroll functions in the
1.5Department of Administration; requiring a report on improvement initiatives.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. CITATION.
1.8This act may be known as the "Back Office Consolidation Act."
1.9 Sec. 2. BENCHMARKING STUDIES.
1.10(a) The commissioner of the Department of Administration must use general funds
1.11previously appropriated to the commissioner for the biennium ending June 30, 2013, to
1.12contract for a benchmark study resulting in a benchmark report on the efficiency and
1.13effectiveness of the following back office functions: accounting; finance; procurement;
1.14and human resources, including payroll. The benchmark report shall be completed by
1.15November 1, 2012, and shall:
1.16(1) include an objective comparison of the performance of the state to peer groups
1.17and world-class organizations for all business processes in the back office functions
1.18specified in this paragraph;
1.19(2) quantify performance gaps;
1.20(3) identify hidden costs;
1.21(4) identify improvement initiatives for the state to increase efficiency and
1.22effectiveness;
1.23(5) suggest a prioritized ranking of the improvement initiatives;
1.24(6) identify and implement immediate opportunities for savings; and
2.1(7) evaluate a variety of future shared service models, including in-house, co-source,
2.2and outsourced.
2.3At the request of the chair and vice chair of the Legislative Coordinating
2.4Commission, the commissioner must include in the department's benchmarking study
2.5an evaluation of the systems employed by the senate, the house of representatives, and
2.6the Legislative Coordinating Commission.
2.7(b) The commissioner of administration shall provide copies of the benchmark
2.8report to the chairs and ranking minority members on the committees in the senate and
2.9house of representatives with primary jurisdiction over the Department of Administration.
2.10 Sec. 3. IMPROVEMENT INITIATIVES.
2.11(a) By January 15, 2013, the commissioner of administration shall submit a report to
2.12the chairs and ranking minority members on the committees in the senate and house of
2.13representatives with primary jurisdiction over the Department of Administration including:
2.14(1) a plan for implementing the improvement initiatives identified in the
2.15benchmarking report during the remainder of the biennium ending June 30, 2013, and
2.16during future bienniums; and
2.17(2) any draft legislation that is required to implement the improvements.
2.18(b) The commissioner of administration, in consultation with the commissioner of
2.19management and budget and affected agency heads, must identify general fund savings
2.20that will occur in executive branch agencies during the biennium ending June 30, 2013, as
2.21a result of implementing initiatives identified in the benchmarking report and as a result of
2.22consolidation of executive branch information technology services after July 1, 2011. The
2.23commissioner of administration may transfer general fund appropriations from agencies
2.24in which the savings occurred to the Department of Administration, in an aggregate
2.25amount not to exceed the cost of the contract for the benchmark study in section 2. The
2.26incremental cost of a benchmarking study implemented at the request of the Legislative
2.27Coordinating Commission must be paid for by the commission, in cooperation with the
2.28house of representatives and the senate.
2.29 Sec. 4. EFFECTIVE DATE.
2.30Sections 1 to 3 are effective the day following final enactment.
1.3requiring a benchmarking study on centralizing accounting, financial reporting,
1.4procurement, fleet services, human resources, and payroll functions in the
1.5Department of Administration; requiring a report on improvement initiatives.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. CITATION.
1.8This act may be known as the "Back Office Consolidation Act."
1.9 Sec. 2. BENCHMARKING STUDIES.
1.10(a) The commissioner of the Department of Administration must use general funds
1.11previously appropriated to the commissioner for the biennium ending June 30, 2013, to
1.12contract for a benchmark study resulting in a benchmark report on the efficiency and
1.13effectiveness of the following back office functions: accounting; finance; procurement;
1.14and human resources, including payroll. The benchmark report shall be completed by
1.15November 1, 2012, and shall:
1.16(1) include an objective comparison of the performance of the state to peer groups
1.17and world-class organizations for all business processes in the back office functions
1.18specified in this paragraph;
1.19(2) quantify performance gaps;
1.20(3) identify hidden costs;
1.21(4) identify improvement initiatives for the state to increase efficiency and
1.22effectiveness;
1.23(5) suggest a prioritized ranking of the improvement initiatives;
1.24(6) identify and implement immediate opportunities for savings; and
2.1(7) evaluate a variety of future shared service models, including in-house, co-source,
2.2and outsourced.
2.3At the request of the chair and vice chair of the Legislative Coordinating
2.4Commission, the commissioner must include in the department's benchmarking study
2.5an evaluation of the systems employed by the senate, the house of representatives, and
2.6the Legislative Coordinating Commission.
2.7(b) The commissioner of administration shall provide copies of the benchmark
2.8report to the chairs and ranking minority members on the committees in the senate and
2.9house of representatives with primary jurisdiction over the Department of Administration.
2.10 Sec. 3. IMPROVEMENT INITIATIVES.
2.11(a) By January 15, 2013, the commissioner of administration shall submit a report to
2.12the chairs and ranking minority members on the committees in the senate and house of
2.13representatives with primary jurisdiction over the Department of Administration including:
2.14(1) a plan for implementing the improvement initiatives identified in the
2.15benchmarking report during the remainder of the biennium ending June 30, 2013, and
2.16during future bienniums; and
2.17(2) any draft legislation that is required to implement the improvements.
2.18(b) The commissioner of administration, in consultation with the commissioner of
2.19management and budget and affected agency heads, must identify general fund savings
2.20that will occur in executive branch agencies during the biennium ending June 30, 2013, as
2.21a result of implementing initiatives identified in the benchmarking report and as a result of
2.22consolidation of executive branch information technology services after July 1, 2011. The
2.23commissioner of administration may transfer general fund appropriations from agencies
2.24in which the savings occurred to the Department of Administration, in an aggregate
2.25amount not to exceed the cost of the contract for the benchmark study in section 2. The
2.26incremental cost of a benchmarking study implemented at the request of the Legislative
2.27Coordinating Commission must be paid for by the commission, in cooperation with the
2.28house of representatives and the senate.
2.29 Sec. 4. EFFECTIVE DATE.
2.30Sections 1 to 3 are effective the day following final enactment.
