ENGROSSED SENATE BILL NO. 672 Summary

• Governor may designate state agencies as "enterprise agencies" for 5-year periods to waive certain statutory provisions and rules if the agency demonstrates projected savings or increased efficiency and maintains internal transparency procedures.

• Enterprise agencies must enter into annual performance agreements with the Governor setting measurable organizational and budgetary goals, including transparency procedures; agreements are public and submitted to both legislative chambers.

• Enterprise agencies are exempt from limitations on employee numbers, pay grades, and full-time-equivalent positions, and may waive personnel hiring and pay statutes while protecting existing permanent classified employees' rights and benefits.

• Enterprise agencies may waive provisions related to procurement, central purchasing, competitive bidding, construction bonds, and information technology consolidation requirements, while maintaining internal procurement procedures and contract records.

• Enterprise agencies may temporarily waive administrative rules if strict compliance causes undue financial hardship, provided the waiver meets four criteria: does not pose undue hardship, does not prejudice legal rights, maintains public health and safety, and does not violate constitutional or legal protections; waivers become effective within 30 days unless the Governor delays or rejects them.

• Each enterprise agency must submit an annual written report to the Governor and Legislature by December 31 summarizing activities and actions taken under the authority granted by this act.

• Act becomes effective November 1, 2017.