1. 1. Performance-based review procedures shall be designed to:

   1. (1) Operate on a defined rotating basis requiring the performance-based review of specified departments or agencies in a particular fiscal year; or
   2. (2) Provide for random review of specific departments or agencies on the basis of perceived needs and requirements of the state budget.

2. 2. Performance-based review shall be required by the budget and appropriations committees and the selection of the department or agency or program shall be made on a rotating basis, with a majority concurrence of the chairman of the house budget committee, the chairman of the senate appropriations committee and the director of the division of budget and planning; provided that, every department, division, or agency shall be reviewed at least once every five years after January 1, 2005. The chair of the house budget committee, the chair of the senate appropriations committee, and the director of the division of budget and planning shall decide what the review will cover, which may include the:

   1. (1) Entire budget of the department or agency;
   2. (2) Budget subclasses as detailed by the office of administration; or
   3. (3) Selected programs; and
   4. (4) Outcome measures used for programs and funds within the department, division, or agency.
3. 3. Where similar programs or services are provided by more than one department or agency, the performance-based review procedures may provide for a review and investigation of the program or service level on an interagency or interdepartmental basis in an effort to consolidate such programs or services.

(L. 1994 H.B. 1109, et al. § 2, A.L. 2003 S.B. 299 & 40)