SENATE BILL REPORT

SSB 5708

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

Establishing a fair competition review commission.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 19, 1987; January 21, 1988; February 2, 1988

Majority Report:  That Substitute Senate Bill No. 5708 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman, Cantu, Conner, Deccio, McMullen, Saling, Smitherman.

Senate Staff:Patrick Woods (786-7430); Jo-Ellen Thomas (786-7784)  February 2, 1988

AS PASSED SENATE, FEBRUARY 9, 1988

BACKGROUND:

During recent years, the Legislature has received testimony from representatives of for-profit businesses stating that state government agencies, institutions of higher education and nonprofit corporations are unfairly competing with private sector businesses in providing goods and services.

SUMMARY:

The Fair Competition Review Commission is established.  The commission is made up of 24 members:  four Senate members, two from each major political party, appointed by the President of the Senate; four House members, two from each major political party, appointed by the Speaker of the House; four state employees; four public employees not in management positions; and eight members of the private sector business community, appointed by the governor.

The commission is directed to examine business activities of state and local government which are also performed by private sector enterprises and, in light of such examination identify potential benefits if certain state and local government business activities were performed by the private sector; identify potential benefits if certain business activities now contracted with the private sector were performed by state and local governments; 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, or which restrict state and local governments from performing activities normally performed by private sector businesses; review state and local government cost accounting and reporting procedures, as well as private sector bidding procedures, to insure that actual project costs are reflected; examine the tax impact if activities performed by state and local government and private sector businesses were shifted; review the effectiveness of the law relating to commercial activities by institutions of higher education;identify other issues relating to the fair competition issue.  The commission begins work by July 1, 1988, and prepares a schedule for accomplishing its goals by January 1, 1989.  The commission ceases to exist on July 1, 1991.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 20, 1988

Appointments by Legislature Required:     Four Senate members, two from each major political caucus, appointed by the President of the Senate and four House members, two from each major political caucus, appointed by the Speaker to the Fair Competition Review Commission.

Senate Committee - Testified: Collins Sprague, AWB (for); Gerald Brong (for); Jay Hartford, WSU (against); Mark Brown, Washington Federation of State Employees (against)