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68th Legislature 2023 HB 190.1
1 HOUSE BILL NO. 190
2 INTRODUCED BY B. MERCER, T. MOORE, M. BERTOGLIO, L. HELLEGAARD
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO PROVIDING FOR A
5 STRATEGIC PLANNING PROCESS FOR CERTAIN GOVERNMENT ENTITIES; REQUIRING
6 DEPARTMENTS TO PRODUCE STRATEGIC PLANS AND ANNUAL PERFORMANCE REPORTS;
7 PROVIDING FOR CERTAIN PUBLIC COMMENT PROVISIONS; LIMITING JUDICIAL REVIEW; EXEMPTING
8 CERTAIN DEPARTMENTS FROM CERTAIN BUDGET PLANNING PROCESS REQUIREMENTS;
9 REQUIRING THAT ONLY EXISTING RESOURCES MAY BE USED TO IMPLEMENT THE ACT; PROVIDING
10 DIRECTIONS TO THE CODE COMMISSIONER; AMENDING SECTIONS 2-4-102 AND 17-7-111, MCA;
11 REPEALING SECTIONS 2-15-2221, 2-15-2222, 2-15-2223, 2-15-2224, 2-15-2225, AND 2-15-2226, MCA; AND
12 PROVIDING AN EFFECTIVE DATE.”
13
14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
15
16 NEW SECTION. Section 1. Short title. [Sections 1 through 8] may be cited as the "State
17 Measurement for Accountable, Responsive, and Transparent Government (SMART) Act".
18
19 NEW SECTION. Section 2. Declaration of policy and purpose. (1) It is the public policy of this
20 state to provide for a strategic planning process for state government that results in the development of goals,
21 objectives, and performance measures for each department's programs to facilitate efficient, transparent,
22 accountable, and responsive government service, including annual performance reports to optimize the
23 performance of state government.
24 (2) The purpose of [sections 1 through 8] is to ensure the development of strategic plans for
25 executive branch departments that include performance measures to allow policymakers, stakeholders, and the
26 public to understand what a department intends to accomplish and that create a basis to evaluate whether each
27 department has achieved its strategic plan and whether the outcomes and outputs merited the use of taxpayer
28 money.
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68th Legislature 2023 HB 190.1
1
2 NEW SECTION. Section 3. Definitions. As used in [sections 1 through 8], the following definitions
3 apply:
4 (1) "Annual performance report" means a written annual review and assessment of the outcomes
5 and outputs of a department as compared to its established strategic plan and performance measures.
6 (2) "Department" means each entity listed in 2-15-104(1)(a) through (1)(p), the office of the
7 secretary of state, the office of the state auditor, and the office of public instruction.
8 (3) "Goal" means a specific goal or target related to a performance measure that is adopted by a
9 department.
10 (4) "Mission and vision statement" means a written statement describing a department's purpose,
11 what it intends to do, and whom it intends to serve.
12 (5) "Outcomes" means a quantification of the public benefit for Montanans derived from actions by
13 a department.
14 (6) "Outputs" means a quantification of the number of services that a department produces for
15 Montanans.
16 (7) "Performance measure" means a written monitoring tool that is designed to help guide
17 government by assessing what a department aspires to achieve pursuant to its strategic plan with respect to
18 the outcomes and outputs of its programs.
19 (8) "Program" means any activity undertaken by a department pursuant to an appropriation.
20 (9) "Strategic plan" means a written plan prepared by a department that contains the mission and
21 vision statement, goals, and objectives that a department intends to accomplish through its programs, that is
22 used to guide the ongoing and proposed activities of a department with performance measures for tracking
23 success in meeting goals and objectives, that is revised regularly, and that remains in effect until replaced or
24 revised.
25
26 NEW SECTION. Section 4. Strategic plan. (1) Each department shall engage in the process of
27 strategic planning and shall produce a strategic plan.
28 (2) No later than September 1, 2023, each department shall adopt a strategic plan. Each
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1 department shall publish a subsequent strategic plan no later than July 1, 2026, and a revised plan no later
2 than July 1 every 3 years afterward.
3 (3) At a minimum, a department's strategic plan must include the following components:
4 (a) a mission and vision statement;
5 (b) a description of the functions and programs of the department, including a discussion of the
6 department's priorities;
7 (c) goals of the department that reflect the benefits and outcomes the department expects to
8 achieve on behalf of the public or specific groups through its programs; and
9 (d) specific and measurable performance measures for its programs, including the preferred
10 outcomes and outputs with respect to each performance measure for each department program.
11 (4) Performance measures must:
12 (a) be derived from a department's mission and vision statement, goals, objectives, and strategic
13 plan;
14 (b) focus on a department's efforts in implementing legislative intent and the department's
15 priorities, goals, and objectives;
16 (c) be quantitative when possible; and
17 (d) be designed to provide meaningful and useful information to policymakers and the public.
18 (5) A department's strategic plan, including associated performance measures, may be adopted
19 only after consideration of public comment.
20 (6) Before adopting a new or subsequent strategic plan, a department shall:
21 (a) prior to the beginning of the public notice period, give written public notice of the proposed
22 strategic plan by:
23 (i) providing prominent notice of the proposed strategic plan and any associated hearings on its
24 website; and
25 (ii) publishing notice in the Montana Administrative Register of the proposed strategic plan, any
26 associated hearings, and the dates during which public comment will be accepted;
27 (b) hold at least one public hearing on the proposed strategic plan;
28 (c) accept public comment for at least 30 days; and
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1 (d) consider written and oral comments made during the public comment period and post
2 transcripts of public hearings and written comments on the proposed strategic plan on its website.
3 (7) The strategic plan adopted by a department must be posted on the websites of the department
4 and the office of budget and program planning.
5
6 NEW SECTION. Section 5. Annual performance report. (1) No later than December 1, 2024, and
7 no later than October 1 of each year afterward, each department shall produce an annual performance report
8 for the fiscal year that concluded in the same year and distribute it as provided in subsections (4) and (5).
9 (2) The annual performance report must focus on measuring outcomes and outputs rather than
10 processes undertaken.
11 (3) In the annual performance report, a department shall assess whether existing performance
12 measures continue to relate logically to goals and other elements of the strategic plan and to measure preferred
13 outcomes for department programs.
14 (4) An annual performance report of a department must be posted on the websites of the
15 department and the office of budget and program planning. The annual performance report must include a
16 hyperlink to the department's strategic plan posted on the department's official website.
17 (5) By December 1 of each year, in accordance with 5-11-210, the annual performance report of
18 each department must be provided to the legislative finance committee and the appropriate legislative policy
19 interim committee provided for in Title 5, chapter 5, part 2.
20
21 NEW SECTION. Section 6. Periodic assessment, audit, and revision of performance measures.
22 Performance measures must be revised no less frequently than every 3 years. Interim committees and interim
23 budget subcommittees, if provided for in law, shall use performance data to review a department's strategic
24 planning documents as the documents relate to prospective legislation and budgets. If directed by the
25 legislative audit committee, the legislative audit division may evaluate the methods used by departments to
26 ensure the accuracy of data collection and reporting.
27
28 NEW SECTION. Section 7. Judicial review. A department's consideration of input from public
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1 comment submitted pursuant to [section 4] in developing or revising a strategic plan is not subject to judicial
2 review.
3
4 NEW SECTION. Section 8. Fiscal impact. A department may use only existing resources to
5 implement the provisions of [sections 1 through 7].
6
7 Section 9. Section 2-4-102, MCA, is amended to read:
8 "2-4-102. Definitions. For purposes of this chapter, the following definitions apply:
9 (1) "Administrative rule review committee" or "committee" means the appropriate committee
10 assigned subject matter jurisdiction in Title 5, chapter 5, part 2.
11 (2) (a) "Agency" means an agency, as defined in 2-3-102, of state government, except that the
12 provisions of this chapter do not apply to the following:
13 (i) the state board of pardons and parole, which is exempt from the contested case and judicial
14 review of contested cases provisions contained in this chapter. However, the board is subject to the remainder
15 of the provisions of this chapter.
16 (ii) the supervision and administration of a penal institution with regard to the institutional
17 supervision, custody, control, care, or treatment of youth or prisoners;
18 (iii) the board of regents and the Montana university system;
19 (iv) the financing, construction, and maintenance of public works;
20 (v) the public service commission when conducting arbitration proceedings pursuant to 47 U.S.C.
21 252 and 69-3-837.
22 (b) The term does not include a school district, a unit of local government, or any other political
23 subdivision of the state.
24 (3) "ARM" means the Administrative Rules of Montana.
25 (4) "Contested case" means a proceeding before an agency in which a determination of legal
26 rights, duties, or privileges of a party is required by law to be made after an opportunity for hearing. The term
27 includes but is not restricted to ratemaking, price fixing, and licensing.
28 (5) (a) "Interested person" means a person who has expressed to the agency an interest
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1 concerning agency actions under this chapter and has requested to be placed on the agency's list of interested
2 persons as to matters of which the person desires to be given notice.
3 (b) The term does not extend to contested cases.
4 (6) "License" includes the whole or part of an agency permit, certificate, approval, registration,
5 charter, or other form of permission required by law but does not include a license required solely for revenue
6 purposes.
7 (7) "Licensing" includes an agency process respecting the grant, denial, renewal, revocation,
8 suspension, annulment, withdrawal, limitation, transfer, or amendment of a license.
9 (8) "Party" means a person named or admitted as a party or properly seeking and entitled as of
10 right to be admitted as a party, but this chapter may not be construed to prevent an agency from admitting any
11 person as a party for limited purposes.
12 (9) "Person" means an individual, partnership, corporation, association, governmental subdivision,
13 agency, or public organization of any character.
14 (10) "Register" means the Montana Administrative Register.
15 (11) (a) "Rule" means each agency regulation, standard, or statement of general applicability that
16 implements, interprets, or prescribes law or policy or describes the organization, procedures, or practice
17 requirements of an agency. The term includes the amendment or repeal of a prior rule.
18 (b) The term does not include:
19 (i) statements concerning only the internal management of an agency or state government and
20 not affecting private rights or procedures available to the public, including rules implementing the state
21 personnel classification plan, the state wage and salary plan, or the statewide accounting, budgeting, and
22 human resource system;
23 (ii) formal opinions of the attorney general and declaratory rulings issued pursuant to 2-4-501;
24 (iii) rules relating to the use of public works, facilities, streets, and highways when the substance of
25 the rules is indicated to the public by means of signs or signals;
26 (iv) seasonal rules adopted annually or biennially relating to hunting, fishing, and trapping when
27 there is a statutory requirement for the publication of the rules and rules adopted annually or biennially relating
28 to the seasonal recreational use of lands and waters owned or controlled by the state when the substance of
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1 the rules is indicated to the public by means of signs or signals;
2 (v) uniform rules adopted pursuant to interstate compact, except that the rules must be filed in
3 accordance with 2-4-306 and must be published in the ARM; or
4 (vi) game parameters approved by the state lottery commission relating to a specific lottery game.
5 This subsection (11)(b)(vi) does not exempt generally applicable policies governing the state lottery that are
6 otherwise subject to the Montana Administrative Procedure Act; or
7 (vii) strategic planning documents governed by [sections 1 through 8] and published as provided in
8 [sections 1 through 8].
9 (12) (a) "Significant interest to the public" means agency actions under this chapter regarding
10 matters that the agency knows to be of widespread citizen interest. These matters include issues involving a
11 substantial fiscal impact to or controversy involving a particular class or group of individuals.
12 (b) The term does not extend to contested cases.
13 (13) "Small business" means a business entity, including its affiliates, that is independently owned
14 and operated and that employs fewer than 50 full-time employees.
15 (14) "Substantive rules" are either:
16 (a) legislative rules, which if adopted in accordance with this chapter and under expressly
17 delegated authority to promulgate rules to implement a statute have the force of law and when not so adopted
18 are invalid; or
19 (b) adjective or interpretive rules, which may be adopted in accordance with this chapter and under
20 express or implied authority to codify an interpretation of a statute. The interpretation lacks the force of law.
21 (15) "Supplemental notice" means a notice that amends the proposed rules or changes the timeline
22 for public participation."
23
24 Section 10. Section 17-7-111, MCA, is amended to read:
25 "17-7-111. Preparation of state budget -- agency program budgets -- form distribution and
26 contents. (1) (a) To prepare a state budget, the executive branch, the legislature, and the citizens of the state
27 need information that is consistent and accurate. Necessary information includes detailed disbursements by
28 fund type for each agency and program for the appropriate time period, recommendations for creating a
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1 balanced budget, and rec