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ACT No. 797
Regular Session, 2014
HOUSE BILL NO. 853
BY REPRESENTATIVE HARRIS
AN ACT1
To amend and reenact R.S. 39:2(23), (24), (46), and (47), 36(A), 51(C), 87.2(B) and (C)(1),2
and 87.3(A)(introductory paragraph), (2)(a), (3), and (4)(a) and (B), relative to the3
operating budget; to provide for definitions; to provide for information included in4
the executive budget; to provide for information included in the General5
Appropriation Bill; to provide for information included in the Ancillary6
Appropriation Act; to provide for an effective date; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 39:2(23), (24), (46), and (47), 36(A), 51(C), 87.2(B) and (C)(1), and10
87.3(A)(introductory paragraph), (2)(a), (3), and (4)(a) and (B) are hereby amended and11
reenacted to read as follows: 12
§2. Definitions13
* * *14
(23) "Key objective" means an objective which is designated as such by the15
commissioner of administration and is included in the General Appropriation Act or16
the Ancillary Appropriation Act executive budget or the executive budget supporting17
document.18
(24) "Key performance indicator" means a performance indicator which is19
designated as such by the commissioner of administration and is included in the20 ENROLLEDHB NO. 853
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General Appropriation Act or the Ancillary Appropriation Act executive budget or1
the executive budget supporting document.2
* * *3
(46) "Supporting objective" means an objective which is designated as such4
by the commissioner of administration and is included in the executive budget5
supporting document and not included in the General Appropriation Act or Ancillary6
Appropriation Act executive budget.7
(47) "Supporting performance indicator" means a performance indicator8
which is designated as such by the commissioner of administration and is included9
in the executive budget supporting document and not included in the General10
Appropriation Act or Ancillary Appropriation Act executive budget.11
* * *12
§36. Contents and format of executive budget; supporting document13
A. The executive budget shall present a complete financial and14
programmatic plan for the ensuing year, and it shall be configured in a format so as15
to clearly present and highlight the functions and operations of state government and16
the financial requirements associated with those functions and operations. The17
executive budget shall be a performance-based budget and as such may include key18
objectives and key performance indicators. The commissioner of administration may19
designate key objectives and key performance indicators to be included in the20
executive budget. It Additionally, the executive budget shall include at a minimum21
the following:22
* * *23
§51. General Appropriation Bill; other appropriation bills24
* * *25
C. The General Appropriation Bill shall reflect a performance-based budget,26
with specific appropriations for each agency and its programs to include key27
objectives and key performance indicators therefor. The General Appropriation Bill28
may also contain provisions for specific rewards or penalties for certain agencies as29
provided in R.S. 39:87.4 and shall include the allocation of expenditures, itemized30 ENROLLEDHB NO. 853
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by category for each agency, as recommended for the ensuing fiscal year in the1
supporting document. The provisions of this Subsection regarding the allocation of2
expenditures shall not apply to any agency or program in Schedule 19, Higher3
Education, or Louisiana State University Health Sciences Center Health Care4
Services Division.5
* * *6
§87.2. Performance data; rewards and penalties; modifications to data7
* * *8
B. Key objectives, key performance indicators, and the performance9
standards for such key performance indicators which are may be contained in the10
General Appropriation Act, Ancillary Appropriation Act, or any other appropriation11
act through which an executive branch agency receives an appropriation, shall be12
included in the agency's appropriation executive budget. However, in each fiscal13
year any key objectives and key performance indicators recommended and contained14
in the executive budget supporting document for an agency which are not contained15
in an appropriation act the executive budget, and which are not designated as key16
performance objectives and key performance indicators by the commissioner of17
administration, shall be designated as supporting objectives and supporting18
performance indicators for that fiscal year. The availability of funds appropriated19
shall be conditioned upon each agency's compliance with the provisions of R.S.20
39:87.3, relative to reporting of performance.21
C.(1) In order to ensure adoption of the most accurate expectations of agency22
performance within the state budget, performance data contained in the adopted23
budget executive budget or the executive budget supporting document may be24
adjusted at the beginning of the fiscal year.25
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§87.3. Performance progress reports27
A. Each agency receiving an appropriation in the General Appropriation Act28
or the Ancillary Appropriation Act shall produce a series of performance progress29
reports. The reports shall provide the legislature with information on the agency's30 ENROLLEDHB NO. 853
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actual progress toward achievement of that year's performance standards for1
performance indicators contained within the General Appropriation Act, the2
Ancillary Appropriation Act, and the executive budget or the executive budget3
supporting document. The Joint Legislative Committee on the Budget or a4
subcommittee thereof, hereinafter referred to in this Section as the "committee", shall5
prescribe the format and the method of transmission of the reports. The reports shall6
be submitted to the committee, the legislative fiscal officer, the legislative auditor,7
and the commissioner of administration, and shall contain data as provided in8
Paragraphs (1) through (4) of this Subsection, as well as any other data required by9
the committee relative to agency performance and accountability. The reporting10
schedule and specific components of each report are as follows:11
* * *12
(2) The Mid-year Performance Progress Report shall be submitted to the13
committee, the legislative fiscal officer, the legislative auditor, and the commissioner14
of administration on or before February eighth of each year, and it shall contain data15
for the period of July through December of the current fiscal year. It shall include:16
(a) For each performance indicator included in the executive budget or17
executive budget supporting document or the General Appropriation Act or the18
Ancillary Appropriation Act, a comparison of the actual performance with the annual19
performance standard therefor contained in the executive budget supporting20
document or the General Appropriation Act or the Ancillary Appropriation Act,21
including a brief explanation of any variance from the standard which exceeds five22
percent.23
* * *24
(3) The Third Quarter Performance Progress Report shall be submitted to the25
committee, the legislative fiscal officer, the legislative auditor, and the commissioner26
of administration on or before May eighth of each year, and it shall contain data for27
the period of July through March of the current fiscal year. It shall include, for each28
key performance indicator designated as such and contained in the General29
Appropriation Act or the Ancillary Appropriation Act executive budget or the30 ENROLLEDHB NO. 853
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executive budget supporting document, a comparison of the actual performance with1
the annual performance standard therefor, including a brief explanation of any2
variance from the standard which exceeds five percent.3
(4) The Year-end Performance Progress Report shall be submitted to the4
committee, the legislative fiscal officer, the legislative auditor, and the commissioner5
of administration on or before September eighth of each year. It shall contain data6
from the immediately preceding fiscal year, and it shall cover the period of July7
through June of that fiscal year, to include:8
(a) For each performance indicator included in the executive budget or9
executive budget supporting document or the General Appropriation Act or the10
Ancillary Appropriation Act, a comparison of the actual performance with the annual11
performance standard therefor contained in the executive budget supporting12
document or the General Appropriation Act or the Ancillary Appropriation Act,13
including a brief explanation of any variance from the standard which exceeds five14
percent.15
* * *16
B. The performance progress reports shall be used by the committee in the17
assessment of each agency's progress in achieving the performance standards18
contained in the General Appropriation Act or the Ancillary Appropriation Act and19
the executive budget or executive budget supporting document. Each agency's20
performance progress reports, particularly the Year-end Performance Progress21
Report, shall be reviewed and considered by the committee in the development of22
any recommendation for or the granting of any reward or imposition of any penalty23
authorized under R.S. 39:87.4.24
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Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2014, or on the day following such approval by the legislature, whichever is later.3
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: