2014 Indiana Code TITLE 4. STATE OFFICES AND ADMINISTRATION ARTICLE 3. GOVERNOR CHAPTER 22. OFFICE OF MANAGEMENT AND BUDGET
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IC 4-3-22
Chapter 22. Office of Management and Budget
IC 4-3-22-1
Legislative findings
Sec. 1. The state 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 analysis.
(3) Put in place comprehensive and effective budgeting
practices.
(4) Coordinate all functions related to budgeting and controlling
spending in state government.
(5) Perform comprehensive and detailed financial analysis.
(6) Perform comprehensive financial oversight.
(7) Ensure that effective financial management policies are
implemented throughout state government.
(8) Perform comprehensive and detailed performance analysis.
(9) Ascertain whether the burdens imposed by laws and rules
are justified by their benefits using a rigorous cost benefit
analysis.
(10) Measure the performance of government activities.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-1.5
"Continuous process improvement"
Sec. 1.5. As used in this chapter, "continuous process
improvement" means a management methodology that combines
tools to improve process speed and reduce waste with data driven
project analysis to provide products and services with improved
quality at lower cost.
As added by P.L.152-2012, SEC.2.
IC 4-3-22-2
"Director"
Sec. 2. As used in this chapter, "director" means the director of
the office of management and budget established by this chapter.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-3
Establishment of office; director
Sec. 3. (a) To address the needs set forth in section 1 of this
chapter, there is established the office of management and budget,
which is referred to in this chapter as the "OMB".
(b) The OMB shall have a director who is the chief financial
officer of the state. The director shall report directly to the governor.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-4
Responsibilities and authority of budget director
Sec. 4. The director is responsible and accountable for and has
authority over the following:
(1) All functions performed by the following:
(A) The budget agency.
(B) The department of state revenue.
(C) The department of local government finance.
(D) The Indiana finance authority.
The directors of these agencies, departments, and offices shall
report to the director and administer their offices and agencies
in compliance with the policies and procedures related to fiscal
management that are established by the OMB and approved by
the governor.
(2) All budgeting, accounting, and spending functions within
the various agencies, departments, and programs of state
government.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-5
OMB director as budget director
Sec. 5. The director may serve as the budget director of the budget
agency under IC 4-12-1-3 unless the governor appoints another
individual to serve as the budget director. If the director also serves
as the budget director, the director is not entitled to receive any
salary or other compensation as budget director.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-6
Division of government efficiency and financial planning
Sec. 6. (a) The division of government efficiency and financial
planning is established within the OMB. The director shall appoint,
subject to the approval of the governor, a director of the division,
who serves at the pleasure of the director of OMB.
(b) The division shall do the following:
(1) Conduct operational and procedural audits of state
government.
(2) Perform financial planning and design and implement
efficiency projects.
(3) Advise and assist:
(A) each instrumentality, agency, authority, board,
commission, and officer in the executive department of state
government; and
(B) each body corporate and politic established as an
instrumentality of the state;
to identify and implement continuous process improvement in
state government.
(4) Carry out such other responsibilities as may be designated
by the director.
As added by P.L.246-2005, SEC.38. Amended by P.L.152-2012,
SEC.3.
IC 4-3-22-7
Duties; fiscal management
Sec. 7. The OMB shall assist the governor in the articulation,
development, and execution of the governor's policies and programs
on fiscal management.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-8
Duties; review and development of policies and proposals
Sec. 8. The OMB shall assist and represent the governor in the
development and review of all policy, legislative, and rulemaking
proposals affecting capital budgeting, procurement, e-government,
and other matters related to fiscal management.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-9
Duties; coordination of administrative policies
Sec. 9. The OMB shall harmonize agency views on legislation and
facilitate the negotiation of policy positions for the governor.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-10
Duties; budget decision making and negotiations
Sec. 10. The OMB shall provide expertise to the governor for
budget decision making and negotiations.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-11
Duties; analysis of budgets; trends
Sec. 11. The OMB shall analyze trends in and the consequences
of aggregate budget policy.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-12
Duties; metrics for measuring performance and efficiency
Sec. 12. The OMB shall establish metrics for measuring state
government performance and efficiency.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-13
Duties; cost benefit analysis for proposed rules; verified data;
confidentiality; analysis prohibited for adoptions of federal law
and technical amendments
Sec. 13. (a) Except as provided in subsection (e), the OMB shall
perform a cost benefit analysis upon each proposed rule and provide
to:
(1) the governor; and
(2) the legislative council;
an assessment of the rule's effect on Indiana business. The OMB
shall submit the cost benefit analysis to the legislative council in an
electronic format under IC 5-14-6.
(b) After June 30, 2005, the cost benefit analysis performed by the
OMB under this section with respect to any proposed rule that has an
impact of at least five hundred thousand dollars ($500,000) shall
replace and be used for all purposes under IC 4-22-2 in lieu of the
fiscal analysis previously performed by the legislative services
agency under IC 4-22-2.
(c) In preparing a cost benefit analysis under this section, the
OMB shall consider in its analysis any verified data provided
voluntarily by interested parties, regulated persons, and nonprofit
corporations whose members may be affected by the proposed rule.
A cost benefit analysis prepared under this section is a public
document, subject to the following:
(1) This subsection does not empower the OMB or an agency
to require an interested party or a regulated person to provide
any materials, documents, or other information in connection
with a cost benefit analysis under this section. If an interested
party or a regulated person voluntarily provides materials,
documents, or other information to the OMB or an agency in
connection with a cost benefit analysis under this section, the
OMB or the agency, as applicable, shall ensure the adequate
protection of any:
(A) information that is confidential under IC 5-14-3-4; or
(B) confidential and proprietary business plans and other
confidential information.
If an agency has adopted rules to implement IC 5-14-3-4,
interested parties and regulated persons must submit the
information in accordance with the confidentiality rules adopted
by the agency to ensure proper processing of confidentiality
claims. The OMB and any agency involved in proposing the
rule, or in administering the rule upon the rule's adoption, shall
exercise all necessary caution to avoid disclosure of any
confidential information supplied to the OMB or the agency by
an interested party or a regulated person.
(2) The OMB shall make the cost benefit analysis and other
related public documents available to interested parties,
regulated persons, and nonprofit corporations whose members
may be affected by the proposed rule at least thirty (30) days
before presenting the cost benefit analysis to the governor and
the legislative council under subsection (a).
(d) If the OMB or an agency is unable to obtain verified data for
the cost benefit analysis described in subsection (c), the OMB shall
state in the cost benefit analysis which data were unavailable for
purposes of the cost benefit analysis.
(e) If the OMB finds that a proposed rule is:
(1) an adoption or incorporation by reference of a federal law,
regulation, or rule that has no substantive effect on the scope or
intended application of the federal law or rule; or
(2) a technical amendment with no substantive effect on an
existing Indiana rule;
the OMB may not prepare a cost benefit analysis of the rule under
this section. The agency shall submit the proposed rule to the OMB
with a statement explaining how the proposed rule meets the
requirements of this subsection. If the OMB finds that the rule meets
the requirements of this subsection, the OMB shall provide its
findings to the governor and to the committee in an electronic format
under IC 5-14-6. If the agency amends or modifies the proposed rule
after the OMB finds that a cost benefit analysis may not be prepared
for the rule, the agency shall resubmit the proposed rule to the OMB
either for a new determination that the rule meets the requirements
of this subsection, or for the OMB to prepare a cost benefit analysis
of the rule under this section.
As added by P.L.246-2005, SEC.38. Amended by P.L.131-2012,
SEC.1; P.L.53-2014, SEC.49.
IC 4-3-22-13.1
Duties; cost benefit analysis for three year period after rule's
effective date; contents; verified data; confidentiality
Sec. 13.1. (a) This section applies to a rule that:
(1) has been adopted under IC 4-22-2 or IC 13-14-9; and
(2) has taken effect;
after December 31, 2011.
(b) This section does not apply to a rule for which the OMB has
not performed a cost benefit analysis under section 13(e) of this
chapter.
(c) For each rule to which this section applies, the OMB shall
perform a cost benefit analysis of the rule with respect to the period
encompassing the first three (3) years following the rule's effective
date. Except as otherwise required by the governor under subsection
(g), the OMB shall submit a cost benefit analysis prepared under this
section to:
(1) the governor; and
(2) the legislative council;
not later than six (6) months after the third anniversary of the rule's
effective date. The OMB shall submit the cost benefit analysis to the
legislative council in an electronic format under IC 5-14-6.
(d) A cost benefit analysis prepared under this section must
include the following with respect to the three (3) year period
covered by the analysis:
(1) The cost benefit analysis for the rule prepared under section
13 of this chapter before the rule's adoption, including the
following:
(A) The information required by Financial Management
Circular #2010-4.
(B) The estimate of the primary and direct benefits of the
rule, including the impact on:
(i) consumer protection;
(ii) worker safety;
(iii) the environment; and
(iv) business competitiveness;
as determined before the rule's adoption.
(C) The estimate of the secondary or indirect benefits of the
rule and the explanation of how the conduct regulated by the
rule is linked to the primary and secondary benefits, as
determined before the rule's adoption.
(D) The estimate of any cost savings to regulated persons
(including individuals and businesses) as a result of the rule,
including any savings from:
(i) a change in an existing requirement; or
(ii) the imposition of a new requirement;
as determined before the rule's adoption.
(2) A statement of the number of regulated persons, classified
by industry sector, subject to the rule.
(3) A comparison of:
(A) the cost benefit analysis for the rule prepared under
section 13 of this chapter before the rule's implementation,
including the information specified in subdivision (1); and
(B) the actual costs and benefits of the rule during the first
three (3) years of the rule's implementation, including the
following:
(i) Any actual primary and direct benefits of the rule,
including the rule's impact on consumer protection, worker
safety, the environment, and business competitiveness.
(ii) Any actual secondary or indirect benefits of the rule
and an explanation of how the conduct regulated by the
rule is linked to the primary and secondary benefits.
(iii) Any actual cost savings to regulated persons
(including individuals and businesses) as a result of the
rule, including any savings from a change in an existing
requirement or from the imposition of a new requirement.
(4) For each element of the rule that is also the subject of
restrictions or requirements imposed under federal law, a
comparison of:
(A) the restrictions or requirements imposed under the rule;
and
(B) the restrictions or requirements imposed under federal
law.
(5) Any other information that the governor or the committee:
(A) requires with respect to a cost benefit analysis under this
section; and
(B) requests in writing.
(e) In preparing a cost benefit analysis under this section, the
OMB shall consider in its analysis any verified data provided
voluntarily by interested parties, regulated persons, and nonprofit
corporations whose members may be affected by the rule. A cost
benefit analysis prepared under this section is a public document,
subject to the following:
(1) This subsection does not empower the OMB or an agency
to require an interested party or a regulated person to provide
any materials, documents, or other information. If an interested
party or a regulated person voluntarily provides materials,
documents, or other information to the OMB or an agency in
connection with a cost benefit analysis under this section, the
OMB or the agency, as applicable, shall ensure the adequate
protection of any:
(A) information that is confidential under IC 5-14-3-4; or
(B) confidential and proprietary business plans and other
confidential information.
If an agency has adopted rules to implement IC 5-14-3-4,
interested parties and regulated persons must submit the
information in accordance with the confidentiality rules adopted
by the agency to ensure proper processing of confidentiality
claims. The OMB and any agency involved in administering the
rule shall exercise all necessary caution to avoid disclosure of
any confidential information supplied to the OMB or the agency
by an interested party or a regulated person.
(2) The OMB shall make the cost benefit analysis and other
related public documents available to interested parties,
regulated persons, and nonprofit corporations whose members
may be affected by the rule at least thirty (30) days before
presenting the cost benefit analysis to the governor and the
legislative council under subsection (c).
(f) If the OMB or an agency is unable to obtain verified data for
the cost benefit analysis described in subsection (d), the OMB shall
state in the cost benefit analysis which data were unavailable for
purposes of the cost benefit analysis.
(g) The governor or the legislative council, or both, may
prescribe:
(1) the form of a cost benefit analysis; and
(2) the process, deadlines, and other requirements for
submitting a cost benefit analysis;
required under this section.
As added by P.L.131-2012, SEC.2. Amended by P.L.53-2014,
SEC.50.
IC 4-3-22-14
Agencies and instrumentalities; required compliance and
cooperation
Sec. 14. All instrumentalities, agencies, authorities, boards,
commissions, and officers of the executive, including the
administrative, department of state government, and all bodies
corporate and politic established as instrumentalities of the state
shall:
(1) comply with the policies and procedures related to fiscal
management that are established by the OMB and approved by
the governor; and
(2) cooperate with and provide assistance to the OMB.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-15
Agencies; accountability; compliance with statutory requirements
Sec. 15. All state agencies (as defined in IC 4-12-1-2) shall, in
addition to complying with all statutory duties applicable to state
purchasing, be accountable to the OMB for adherence to policies,
procedures, and spending controls established by the OMB and
approved by the governor.
As added by P.L.246-2005, SEC.38.
IC 4-3-22-16
Comments concerning proposed legislation
Sec. 16. (a) As used in this section, "coordinator" means the
following:
(1) A small business regulatory coordinator (as defined in
IC 4-22-2-28.1(b)).
(2) An ombudsman designated under IC 13-28-3-2.
(3) An ombudsman designated under IC 4-4-35-8.
(b) Each coordinator may review proposed legislation affecting
the small businesses that are regulated by the agency or that would
be regulated by the agency under proposed legislation. A coordinator
may submit to the OMB written comments concerning the impact of
proposed legislation on small business.
(c) The OMB may review comments received under subsection
(b). The OMB may amend the comments. After completing its
review, the OMB shall transmit the comments to the legislative
services agency for posting on the general assembly's web site. The
comments submitted under this section shall be transmitted
electronically in a format suitable for posting to the general
assembly's web site as determined by the legislative services agency.
As added by P.L.137-2006, SEC.2. Amended by P.L.110-2010,
SEC.1; P.L.187-2014, SEC.1.
IC 4-3-22-17
Expired
(Expired 7-1-2013 by P.L.171-2011, SEC.1.)
IC 4-3-22-18
Center for deaf and hard of hearing education; determination of
appropriate agency
Sec. 18. Before July 1, 2013, the office of management and
budget, in consultation with the Indiana School for the Deaf, the
department of education, the state department of health, and the
office of the secretary of family and social services, shall recommend
to the general assembly through the budget process an appropriate
agency to provide office space and staff support for the center for
deaf and hard of hearing education established under IC 20-35-11.
Until the center for deaf and hard of hearing education is established
and operating, the Indiana School for the Deaf shall continue to
provide those services that will be transferred from the Indiana
School for the Deaf to the center for deaf and hard of hearing
education or local education agencies at the time the center is
established and operating.
As added by P.L.109-2012, SEC.1.
IC 4-3-22-18.2
Duties; OPEB reports
Sec. 18.2. The OMB shall, not later than December 1 each year,
submit to the budget committee the following reports concerning
post-employment benefits (as defined in IC 5-10-16-5):
(1) The report prepared by the OMB for state agencies under
IC 5-10-16-7.
(2) Reports received from state educational institutions under
IC 21-38-3-13.
As added by P.L.138-2012, SEC.1.
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