Senate Bill No. 128
(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced February 15, 2001; referred to the Committee
on Government Organization; and then to the Committee on Finance
.]
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A BILL to amend chapter five of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article one-d, relating to
establishing the office of risk analysis and management within
the office of the governor; appointment and qualifications of
the chief risk officer; requiring spending units to notify the
chief risk officer of proposed purchases of certain goods and
services; biannual report; requiring a comprehensive strategic
plan; authority of chief risk officer to obtain assistance
from executive branch agencies; authorizing certain
assessments against spending units; and authorizing transfer
of proceeds of assessments to the office of risk analysis and management.
Be it enacted by the Legislature of West Virginia:
That chapter five of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto
a new article, designated article one-d, to read as follows:
ARTICLE 1D. GOVERNOR'S OFFICE OF RISK ANALYSIS AND MANAGEMENT.
§5-1D-1. Findings and purposes.
The Legislature finds and declares that risk analysis and
management is essential to finding practical solutions to the
everyday problems of government, and that the management goals and
purposes of government would be furthered by the development of a
consistent set of risk analysis and management principles.
Therefore, it is the purpose of this article to create, as an
integral part of the office of the governor, the office of risk
analysis and management, with the authority to advise and make
recommendations to all state spending units on risk analysis and
management functions.
§5-1D-2. Definitions.
As used in this article:
(a) "Risk analysis and management" means issues that arise out
of the day-to-day operations of state government that put at risk
the people, property, or other assets of the state, the overall operation of state government and its tolerance and acceptance of
risks.
(b) "Chief risk officer" means the person appointed to the
position created in section three of this article and who is vested
with authority to assist state spending units in planning and
coordinating risk analysis and management activities that serve the
effectiveness and efficiency of the individual state spending
units, and further the overall management goals and purposes of
government.
§5-1D-3. Creation of the office of risk analysis and management;
appointment and qualifications of chief risk officer.
There is hereby created the office of risk analysis and
management within the office of the governor. The office shall be
administered by the chief risk officer who shall be appointed by
and shall serve at the will and pleasure of the governor. The
chief risk officer shall have knowledge in the area of self-insured
risk pools, advanced training in the area risk management and an
understanding of the special demands upon government with respect
to budgetary constraints, the protection of public funds, and
federal and state standards of accountability.
§5-1D-4. Powers and duties; professional staff.
(a) With respect to all state spending units, the office of risk analysis and management may:
(1) Develop an organized approach to risk analysis and
management;
(2) Provide, with the assistance of certain executive branch
agencies, technical assistance to the administrators of the various
state spending units in the design and implementation of risk
analysis and management procedures and systems;
(3) Evaluate, with the assistance of certain executive branch
agencies, the economic justification and suitability of acceptable
risk levels, the management thereof, and related services, and
review and make recommendations on the need for acquisition of risk
analysis, management consulting and actuarial services by the state
spending units;
(4) Develop a mechanism for identifying those instances in
which the sound application of risk analysis and management
principles can assist agencies in reducing their exposure to or
frequency of loss;
(5) Create new tools to assist agencies of government in
fulfilling their duties, convene conferences and develop incentive
packages to encourage the use of sound risk management principles;
(6) Engage in any other activities reasonably related to the
findings and purposes set forth in section one of this article, as directed by the governor; and
(7) Charge a fee to be assessed by the chief risk officer to
the state spending units for evaluations performed and technical
assistance provided under the provisions under the provisions of
this article. All fees collected by the office of risk analysis
and management shall be deposited in a special account in the state
treasury to be known as the "Office of Risk Analysis and Management
Administration Fund". Expenditures from the fund shall be made by
the chief risk officer for the purposes set forth in this article
and are not authorized from collections but are to be make only in
accordance with appropriation by the Legislature and in accordance
with the provisions of article three, chapter twelve of this code
and upon the fulfillment of the provisions set forth in article
two, chapter five-a of this code. Amounts collected which are
found from time to time to exceed the funds needed for purposes set
forth in this article may be transferred to other accounts or funds
and redesignated for other purposes by appropriation of the
Legislature.
(b) With respect to executive agencies only, the office of
risk analysis and management may:
(1) Develop a unified and integrated structure of risk
management for all state executive agencies;
(2) Establish, based on need and opportunity, priorities and
time lines for addressing the risk analysis requirements of the
various executive agencies of state government;
(3) Exercise such authority inherent to the chief executive of
the state as the governor may, by executive order, delegate, to
overrule and supersede decisions made by the administrators of the
various executive agencies of government with respect to risk
analysis and management decisions and the acquisition of risk
management services, including, but not limited to, management
consulting contracts and contracts for accounting, actuarial and
related services; and
(4) Draw upon staff of other executive agencies for advice and
assistance in the formulation and implementation of administrative
and operational plans and policies.
(c) The chief risk officer may employ the personnel necessary
to carry out the work of the office and may approve reimbursement
of costs incurred by employees to obtain education and training.
§5-1D-5. Notice of request for proposals by state spending units
required to make purchases through the state
purchasing division.
Any state spending unit that is required to submit a request
for proposal to the state purchasing division prior to purchasing goods or services shall notify the chief risk officer, in writing,
of any proposed purchases of goods or services related to risk
analysis and management, including, but not limited to, management
consulting, actuarial, accounting, or other contracts that involve
the management or risk evaluation of the spending unit. The notice
shall contain a brief description of the goods and services to be
purchased. The state spending unit shall provide the notice to the
chief risk officer ten days prior to its submission of its request
for proposal to the state purchasing division.
§5-1D-6. Notice of request for proposals by state spending units
exempted from submitting purchases to the state
purchasing division.
(a) Any state spending unit that is not required to submit a
request for proposal to the state purchasing division prior to
purchasing goods or services shall notify the chief risk officer,
in writing, of any proposed purchase of goods or services related
to risk analysis and management, including, but not limited to,
management consulting, actuarial, accounting, or other contracts
that involved the management or risk evaluation of the spending
unit. The notice shall contain a detailed description of the goods
and services to be purchased. The state spending unit shall
provide the notice to the chief risk officer a minimum of ten days prior to the time it requests bids on the provision of the goods or
services.
(b) If the chief risk officer evaluates the suitability of the
related services under the provisions of subdivision (3),
subsection (a), section four of this article and determines that
the goods or services to be purchased or the price requested for
the same are not suitable, he or she shall, within ten days of
receiving the notice from the state spending unit, notify the state
spending unit, in writing, of any recommendations he or she has
regarding the proposed purchase of the goods or services. If the
state spending unit receives a written notice from the chief risk
officer within the time period required by this section, the state
spending unit shall not put the goods or services out for bid less
than fifteen days following receipt of the notice from the chief
risk officer.
§5-1D-7. Biannual report.
The chief risk officer shall report biannually to the
legislative joint committee on government and finance on the
activities of his or her office.
§5-1D-8. Exemptions.
Except for the provisions of subsection (a), section four of
this article, the provisions of this article do not apply to the legislative or judicial branches of state government.
NOTE: The purpose of this bill is to establish the Governor's
Office of Risk and Analysis Management.
This article is new; therefore, strike-throughs and
underscoring have been omitted.