HOUSE BILL REPORT

                 HCR 4429

             As Reported By House Committee On:

                  Government Administration

Brief Description:  Creating a joint task force on managed competition and quality initiatives for government services.

Sponsors:  Representatives D. Schmidt, Wolfe, Dunshee, Doumit, Scott, D. Sommers, L. Thomas, Wensman, Gardner, Smith, Alexander, Backlund and Koster.

Brief History:

  Committee Activity:

Government Administration:  2/6/98 [DPS].

HOUSE COMMITTEE ON GOVERNMENT ADMINISTRATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunn; Dunshee; Murray; Reams; Smith; L. Thomas; Wensman and Wolfe.

Staff:  Steve Lundin (786-7127).

Background:  State agencies and local governments may contract for the provision of services, maintenance, and public works or have their employees provide these services, maintenance, and public works.  Many governments are restricted by Aday labor@ limits on the maximum value of public works projects that may be performed by their employees.

State law establishes civil service systems of employment for most state employees, as well as employees of county sheriffs= offices, city police offices, city fire departments, and fire protection districts.  The supreme court held in State Employees v. Community College, 90 Wn.2d 698 (1978), that state civil service laws preclude a state agency from contracting for the performance of new services of a type ordinarily provided and capable of being provided by classified civil service employees.  Legislation was enacted in 1979 somewhat overriding this decision by authorizing a state agency or institution of higher education to contract for services, if the agency regularly purchased these services by contract prior to the date of the supreme court decision.

Summary of Substitute Bill:  The Joint Task Force on Managed Competition and Quality Initiatives for Government Services is created composed of 17 voting members.  Membership on the task force is allocated as follows:

-Eight members of the task force are legislators, four of whom are members of the House of Representatives, two from each of the two largest caucuses, appointed by Speaker of the House of Representatives, and four of whom are members of the Senate, two from each of the two largest caucuses, appointed by the President of the Senate.

-One member of the task force is appointed by the Governor.

-Three members of the task force are appointed by labor organizations, one by the Washington Federation of State Employees, one by the Washington Public Employee Association, and one by the Washington State Council of County and City Employees.

-Two members of the task force are appointed by local government associations, one by the Association of Washington Cities and the other by the Washington State Association of Counties.

-Three members of the task force are appointed by business organizations representing a majority of business organizations in this state.

The task force chooses two co-chairs, one senator and one state representative, who are from opposite parties.  Nonvoting experts and advisors may be appointed to the task force.  Staff of the Senate Research Services and Office of Program Research of the House of Representatives provide staff support to the task force.

The task force is created to prepare a comprehensive study of providing government services using managed competition, collective bargaining, quality and efficiency programs from the public and private sectors, and alternate financing for government services.  A final report must be submitted to the Legislature on or before December 31, 2000, when the task force is dissolved.  Any finding or recommendation must be approved by at least seven members.  Minority findings and recommendations may be adopted.

Substitute Bill Compared to Original Bill:  Legislative membership was doubled.  A specific organization is no longer referenced to appoint business members.  The task force is also to look at collective bargaining.

Appropriation:  None.

Fiscal Note:  Not requested.

Testimony For:  This is a very important bipartisan look at the issues.

Testimony Against:  None.

Testified:  Representative Dave Schmidt, prime sponsor.