S-4474               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5708

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senate Committee on Economic Development & Labor (originally sponsored by Senators Lee, Warnke, Bluechel, Smitherman and Bailey)

Read first time 2/3/88.

AN ACT Relating to state government; creating new sections; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The fair competition review commission is established, composed of the following members, appointed in the following manner:

          (1) Four members shall be from the senate, two from each major political party, and appointed by the president of the senate;

          (2) Four members shall be from the house of representatives, two from each major political party, and appointed by the speaker of the house of representatives;

          (3) Four members shall be appointed by the governor from state agencies;

          (4) Four members shall be appointed by the governor from public employees not in management positions;

          (5) Eight members shall be appointed by the governor from the private sector business community.

          Nonlegislative commission members shall receive no compensation for their services.  Legislative commission members shall be reimbursed for travel expenses pursuant to RCW 44.04.120.

NEW SECTION. Sec. 2.     The fair competition review commission shall examine business activities of state and local governments which are also performed by private sector enterprises, and, in light of such examination, shall:

          (1) Identify benefits which could be realized if certain business activities now performed by state and local governments were performed by the private sector;

          (2) Identify benefits which could be realized if certain business activities now contracted with private sector businesses were performed by state and local governments;

          (3) Identify statutes and policies of state and local governments which might preclude or inhibit the ability of private sector businesses to contract for providing goods and services which are currently provided by state and local governments;

          (4) Identify statutes and policies of state and local governments which might preclude or inhibit the ability of state and local governments to perform activities normally performed by private sector businesses;

          (5) Review state and local government cost accounting and reporting procedures to ensure that such procedures accurately reflect the total cost of state and local government business activities;

          (6) Review private sector bidding procedures to ensure that such procedures accurately predict the total costs of all projects bid;

          (7) Examine the potential impact on state and local tax revenues if certain state and local government business activities were shifted to private sector businesses;

          (8) Examine the potential impact on state and local tax revenues if certain state and local government activities now contracted with the private sector business community were shifted to state and local governments;

          (9) Review the implementation, scope, and general effectiveness of chapter 28B.63 RCW, "commercial activities by institutions of higher education"; and

          (10) Identify other issues related directly to the issue of fair competition between state and local governments and the private sector business community.

NEW SECTION. Sec. 3.     The fair competition review commission shall begin work no later than July 1, 1988.  The commission shall prepare a schedule for accomplishing its goals no later than January 1, 1989.  The commission shall cease to exist on July 1, 1991.