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PRINTER'S NO. 22
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
43
Session of
2021
INTRODUCED BY GROVE, SCHEMEL, RYAN, DOWLING, KAUFFMAN, KEEFER
AND MOUL, JANUARY 11, 2021
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 11, 2021
AN ACT
Amending Title 71 (State Government) of the Pennsylvania
Consolidated Statutes, in boards and offices, providing for
Commonwealth Office of Management and Budget.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Part V of Title 71 of the Pennsylvania
Consolidated Statutes is amended by adding a chapter to read:
CHAPTER 43
COMMONWEALTH OFFICE OF MANAGEMENT AND BUDGET
Subchapter
A. General Provisions
B. Office Administration
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
4301. Scope of chapter.
4302. Legislative findings and declarations.
4303. Definitions.
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§ 4301. Scope of chapter.
This chapter relates to the Commonwealth Office of Management
and Budget.
§ 4302. Legislative findings and declarations.
The General Assembly finds and declares that the Commonwealth
will benefit from devoting adequate resources to do the
following:
(1) Gather and coordinate data in a timely manner.
(2) Perform comprehensive and detailed budgeting
analyses.
(3) Implement comprehensive and effective budgeting
practices.
(4) Coordinate all functions related to budgeting and
controlling spending in State government.
(5) Coordinate all functions related to information
technology in State government.
(6) Coordinate all functions of human resources in State
government.
(7) Coordinate all functions of procurement in State
government.
(8) Perform comprehensive and detailed financial
analyses.
(9) Perform comprehensive financial oversight.
(10) Ensure that effective financial management policies
are implemented throughout State government.
(11) Perform comprehensive and detailed performance
analyses.
(12) Ascertain whether the burdens imposed by laws and
rules are justified by their benefits using a rigorous cost-
benefit analysis.
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(13) Measure the performance of governmental activities.
§ 4303. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Administrative Code of 1929." The act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929.
"Continuous improvement process system." A management
methodology system that combines tools to improve process speed
and reduce waste with data-driven project analysis to provide
products and services with improved quality at a lower cost. The
term may involve any of the following strategies:
(1) Developing a process map that describes the lean
government principles or another widely accepted business
process improvement system by which an executive agency
engages in specific activities that have the purpose of
increasing efficiency and eliminating waste in the processes
used to deliver goods and services to taxpayers and customers
of this Commonwealth. This strategy includes the measurement
of the outcomes regarding increased efficiency and the
elimination of waste and procedures by which the executive
agency produces goods or serves its customers.
(2) Engaging in specific activities to rapidly improve
an executive agency's processes that will increase value or
decrease staff time, inventory, defects, overproduction,
complexity, delays or excessive movement.
(3) Involving executive agency employees at all levels
to map the executive agency's processes and recommend
improvements, with specific importance placed on the
involvement of executive agency employees closest to the
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customer or end user of the State government product or
service.
(4) Providing the means to measure each process in order
to demonstrate the effectiveness of each process or process
improvement.
(5) Training executive agency employees to mentor and
train other executive agency employees in continuous
improvement process systems.
"Director." The director of the office.
"Executive agency." Any of the following:
(1) The Governor's Office.
(2) A department, board, commission, authority or other
agency of the Commonwealth that is subject to the policy
supervision and control of the Governor.
(3) The Office of Lieutenant Governor.
(4) An independent department.
(5) An independent agency.
"Executive board." As specified in section 204 of the
Administrative Code of 1929.
"Independent agency." A board, commission, authority or
other agency of the Commonwealth that is not subject to the
policy supervision and control of the Governor. The term does
not include:
(1) A court or agency of the unified judicial system.
(2) The General Assembly or an agency of the General
Assembly.
"Independent department." Any of the following:
(1) The Department of the Auditor General.
(2) The Treasury Department.
(3) The Office of Attorney General.
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(4) A board or commission of an entity under paragraph
(1), (2) or (3).
"Office." The Commonwealth Office of Management and Budget
established under section 4311 (relating to establishment of
office).
SUBCHAPTER B
OFFICE ADMINISTRATION
Sec.
4311. Establishment of office.
4312. Organization of office.
4313. General duties of office and transfer provisions.
4314. Redesignation.
4315. (Reserved) .
4316. Director.
4317. Governor's Office of Transformation, Innovation,
Management and Efficiency.
4318. Strategic plan.
§ 4311. Establishment of office.
The Commonwealth Office of Management and Budget is
established as an administrative department within the executive
branch of the government of this Commonwealth.
§ 4312. Organization of office.
(a) Division of responsibilities.--The office shall be
divided into the following:
(1) The Bureau of Budget and Financial Management.
(2) The Bureau of Procurement.
(3) The Bureau of State Facilities and Maintenance.
(4) The Bureau of Human Resources.
(5) The Bureau of Information Technology.
(6) The Bureau of Policy and Planning.
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(7) The Governor's Office of Transformation, Innovation,
Management and Efficiency.
(b) Supervision.--
(1) Each bureau of the office shall be headed by an
executive director appointed by the director.
(2) Each executive director shall be under the
supervision of the director.
§ 4313. General duties of office and transfer provisions.
(a) Authority.--The office shall exercise the authority and
perform the duties of the following Commonwealth agencies as
specified in this chapter:
(1) The Office of the Budget.
(2) The Department of General Services.
(3) The Office of Administration.
(4) The Office of Policy and Planning.
(b) Transfer of powers and duties.--
(1) The powers and duties vested in the Secretary of the
Budget, the Secretary of General Services, the Secretary of
Administration and the Secretary of Policy and Planning are
transferred to the director, who shall exercise the powers
and perform the duties that those secretaries exercised or
performed prior to the effective date of this section. Any
reference to the Secretary of the Budget, the Secretary of
General Services, the Secretary of Administration or the
Secretary of Policy and Planning shall be a reference to the
director on or after the effective date of this section.
(2) The following are transferred to the office:
(i) All bureaus, organizations and divisions in the
Office of the Budget, the Department of General Services,
the Office of Administration or the Office of Policy and
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Planning responsible for the functions specified in this
chapter.
(ii) All personnel, allocations, appropriations,
equipment, files, records, contracts, agreements,
obligations and other materials which are used, employed
or expended by the Office of the Budget, the Department
of General Services, the Office of Administration or the
Office of Policy and Planning in connection with the
functions transferred by this chapter to the office in
the first instance and as if these contracts, agreements
and obligations had been incurred or entered into by the
office.
(c) Apportionment.--The personnel, appropriations, equipment
and other items and material transferred to the office by this
section shall include an appropriate portion of the general
administrative, overhead and supporting personnel,
appropriations, equipment and other material of the Office of
the Budget, the Department of General Services, the Office of
Administration or the Office of Policy and Planning and shall
also include, where applicable, Federal grants and funds and
other benefits from any Federal program.
(d) Status of employees.--All personnel transferred under
this chapter shall retain any civil service employment status
assigned to the personnel.
§ 4314. Redesignation.
(a) Office of the Budget.--
(1) The Office of the Budget shall be known as the
Bureau of Budget and Financial Management.
(2) A reference to the Office of the Budget in a statute
or regulation shall be deemed a reference to the office.
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(3) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the office or any bureau specified in this
subsection shall not be affected by the use of the
designation as the Office of the Budget . The office may
continue to use the name "Office of the Budget" on badges,
licenses, contracts, deeds, stationery and other official
documents until existing supplies are exhausted. The office
may substitute the title "Office of Management and Budget"
for "Office of the Budget" on its documents and materials on
a schedule that is deemed appropriate.
(4) The office shall not replace existing signage at its
locations with the redesignated name until the signs are worn
and in need of replacement. This transition shall be
coordinated with changes in administration.
(5) The office shall continue to use the name "Office of
the Budget" on its computer systems until the time of routine
upgrades in each computer system in the office . The change in
name shall be made at the time of the routine upgrade to the
computer systems.
(b) Department of General Services.--
(1) The Department of General Services shall be known as
the Bureau of Procurement and the Bureau of State Facilities
and Maintenance under the office. The following shall apply:
(i) The powers and duties of the Department of
General Services shall be divided between the Bureau of
Procurement and the Bureau of State Facilities and
Maintenance.
(ii) The strategic plan under section 4318 (relating
to strategic plan) shall provide a clear division of the
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powers and duties transferred from the Department of
General Services to the office and the bureaus specified
in this subsection .
(2) A reference to the Department of General Services in
a statute or regulation shall be deemed a reference to the
office.
(3) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the office or any bureau specified in this
subsection shall not be affected by the use of the
designation as the Department of General Services . The office
may continue to use the name "Department of General Services"
on badges, licenses, contracts, deeds, stationery and other
official documents until existing supplies are exhausted. The
office may substitute the title "Office of Management and
Budget" for "Department of General Services" on its documents
and materials on a schedule that is deemed appropriate.
(4) The office shall not replace existing signage at its
locations with the redesignated name until the signs are worn
and in need of replacement. This transition shall be
coordinated with changes in administration.
(5) The office shall continue to use the name
"Department of General Services" on its computer systems
until the time of routine upgrades in each computer system in
the office . The change in name shall be made at the time of
the routine upgrade to the computer systems.
(c) Office of Administration.--
(1) The Office of Administration shall be known as the
Bureau of Human Resources and the Bureau of Information
Technology under the office. The following shall apply:
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(i) The powers and duties of the Office of
Administration shall be divided between the Bureau of
Human Resources and the Bureau of Information Technology.
(ii) The strategic plan under section 4318 shall
provide a clear division of the powers and duties
transferred from the Office of Administration to the
office and any bureau specified in this subsection .
(2) A reference to the Office of Administration in a
statute or regulation shall be deemed a reference to the
office.
(3) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the office or any bureau specified in this
subsection shall not be affected by the use of the
designation as the Office of Administration . The office may
continue to use the name "Office of Administration" on
badges, licenses, contracts, deeds, stationery and other
official documents until existing supplies are exhausted. The
office may substitute the title "Office of Management and
Budget" for "Office of Administration" on its documents and
materials on a schedule that is deemed appropriate.
(4) The office shall not replace existing signage at its
locations with the redesignated name until the signs are worn
and in need of replacement. This transition shall be
coordinated with changes in administration.
(5) The office shall continue to use the name "Office of
Administration" on its computer systems until the time of
routine upgrades in each computer system in the office . The
change in name shall be made at the time of the routine
upgrade to the computer systems.
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(d) Office of Policy and Planning.--
(1) The Office of Policy and Planning shall be known as
the Bureau of Policy and Planning.
(2) A reference to the Office of Policy and Planning in
a statute or regulation shall be deemed a reference to the
Bureau of Policy and Planning.
(3) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the office shall not be affected by the use of the
designation as the Office of Policy and Planning . The office
may continue to use the name "Office of Policy and Planning"
on badges, licenses, contracts, deeds, stationery and other
official documents until existing supplies are exhausted. The
office may substitute the title "Office of Management and
Budget" for "Office of Policy and Planning" on its documents
and materials on a schedule that is deemed appropriate.
(4) The office shall not replace existing signage at its
locations with the redesignated name until the signs are worn
and in need of replacement. This transition shall be
coordinated with changes in administration.
(5) The office shall continue to use the name "Office of
Policy and Planning" on its computer systems until the time
of routine upgrades in each computer system in the office .
The change in name shall be made at the time of the routine
upgrade to the computer systems.
§ 4315. (Reserved).
§ 4316. Director.
(a) Nomination.--No later than 30 days after the submittal
of the strategic plan under section 4318 (relating to strategic
plan), the Governor shall nominate an individual to serve as
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director.
(b) Term.--The director shall serve at the pleasure of the
Governor.
(c) Appointments.--The director shall appoint the executive
directors . Each executive director shall possess appropriate
qualifications to serve in that capacity.
(d) Policy planning.--To perform the duties transferred to
the director under this chapter, the director shall direct and
oversee policy planning for the Governor to ensure that:
(1) the State government is managed in an efficient
manner;
(2) the Governor's policies and programs are efficiently
implemented and administered; and
(3) the Governor's policies and programs are directly
tied to the management of the Commonwealth's finances in a
manner that:
(i) improves government services to taxpayers; and
(ii) strengthens and grows the economy and improves
the long-term fiscal health of the Commonwealth.
§ 4317. Governor's Office of Transformation, Innovation,
Management and Efficiency.
(a) Establishment.--The Governor's Office of Transformation,
Innovation, Management and Efficiency is established within the
office.
(b) Executive director.--The Governor's Office shall be
headed by an executive director who shall be appointed by the
director and who shall report to the director.
(c) Support services.--The office shall provide all support
services and staff for the Governor's Office.
(d) Powers and duties.--The Governor's Office shall:
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(1) Deliver cost savings to the residents of this
Commonwealth through multiagency efficiencies, productivity
improvements and cost-saving innovations.
(2) Remain fully and continuously engaged with executive
agencies to identify new project needs and opportunities.
(3) Promote and foster a culture of innovation, open
data and collaboration across executive agencies in alignment
with the priorities of the Governor.
(4) Identify partnering opportunities with nonprofit
organizations and local communities to leverage resources
that will save taxpayer dollars.
(5) Focus on citizen engagement to further improve user-
oriented services and realize cost efficiencies through the
use of modern platforms.
(6) Increase the involvement and participation of State
employees at all levels in improving management, reducing
waste and improving the delivery of State services.
(7) Work collaboratively with the heads of executive
agencies to identify opportunities for streamlining the
operation of government and generating new efficiencies.
(8) Develop and implement strategies for implementing
the opportunities specified in paragraph (7).
(9) Identify barriers to the implementation of
transformational efforts and recommend strategies for
addressing these barriers.
(10) Provide training to State employees in continuous
improvement.
(e) Cooperation by executive agencies.--
(1) All executive agencies shall cooperate with the
Governor's Office.
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(2) Executive agency heads shall identify key staff to
form innovation teams, which shall be responsible for
implementing the initiatives identified by the Governor's
Office . Innovation teams shall recommend to the Governor's
Office new opportunities to reduce costs and improve
efficiency.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Governor's Office." The Governor's Office of
Transformation, Innovation, Management and Efficiency
established under this section.
§ 4318. Strategic plan.
(a) Development.--Within 60 days of the effective date of
this section, the Governor shall:
(1) subject to subsection (b), contract with a qualified
third party to develop a strategic plan under this section;
or
(2) execute a memorandum of understanding with the
Legislative Budget and Finance Committee to develop a
strategic plan under this section.
(b) Third-party contract.--The Governor may enter into a
contract with a qualified third-party organization under this
section if the organization:
(1) has experience with large corporate mergers of a
company which has more than 500 employees;
(2) has experience assisting in the merging of
government agencies in other states; and
(3) utilizes continuous improvement process systems to
strengthen the efficiency and delivery of service of agencies
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or corporations undergoing a merger.
(c) Parameters.--The strategic plan under this section shall
detail the merger of the Office of the Budget, the Department of
General Services, the Office of Administration and the Office of
Policy and Planning, in accordance with the provisions of this
chapter, and shall provide for:
(1) A reduction of at least 20% in administrative costs.
(2) The consolidation of similar programs.
(3) The elimination of redundancy to maximize taxpayer
dollars.
(4) The improvement of agency services to residents of
this Commonwealth at a lower cost to taxpayers.
(5) A continuous improvement process system throughout
executive agencies.
(6) Financial transparency to residents of this
Commonwealth.
(7) A uniform accounting system and prudent financial
management throughout executive agencies.
(8) T he apportionment of personnel, appropriations,
equipment and other items and material transferred to the
office under section 4313(c) (relating to general duties of
office and transfer provisions).
(d) Submittal.--No later than 210 days after the effective
date of this section, the strategic plan under this section
shall be submitted to the General Assembly for review and any
hearings deemed necessary.
Section 2. All other acts or parts of acts are repealed
insofar as they are inconsistent with this act.
Section 3. Except as otherwise provided in 71 Pa.C.S. Ch.
43, all activities regarding the powers and duties under 71
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Pa.C.S. Ch. 43 which were initiated under the Office of the
Budget, the Department of General Services, the Office of
Administration or the Office of Policy and Planning shall
continue and remain in full force and effect and may be
completed under 71 Pa.C.S. Ch. 43. Orders, regulations, rules
and decisions which were made under the authority of the Office
of the Budget, the Department of General Services, the Office of
Administration or the Office of Policy and Planning regarding
the powers and duties under 71 Pa.C.S. Ch. 43 and which are in
effect on the effective date of 71 Pa.C.S. Ch. 43 shall remain
in full force and effect until revoked, vacated or modified
under 71 Pa.C.S. Ch. 43. Contracts, obligations and collective
bargaining agreements entered into under the authority of the
Office of the Budget, the Department of General Services, the
Office of Administration or the Office of Policy and Planning
are not affected nor impaired by the transfer of powers and
duties under 71 Pa.C.S. Ch. 43.
Section 4. Any expenditures needed to implement this act
shall be paid using encumbered funds of the respective executive
agency.
Section 5. Within 10 days of the nomination under 71 Pa.C.S.
§ 4316(a), the Secretary of the Commonwealth shall provide
notice of the nomination to the Legislative Reference Bureau,
which shall publish the notice in the Pennsylvania Bulletin.
Section 6. This act shall take effect as follows:
(1) The following shall take effect immediately:
(i) This section and section 5 of this act.
(ii) The addition of 71 Pa.C.S. §§ 4301, 4302, 4303,
4316 and 4318.
(2) The remainder of this act shall take effect 30 days
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after publication in the Pennsylvania Bulletin of the notice
under section 5 of this act.
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