SENATE BILL REPORT
SB 5708
BYSenators 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 REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 2, 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 17 members: four Senate members appointed by the President of the Senate, four House members appointed by the Speaker of the House; four state employees appointed by the governor; four representatives of business appointed by the governor; and a chairperson internally selected by the deans of state university business schools.
The commission is directed to identify: activities of state government that compete with private enterprise; cost savings that could be realized if private sector businesses undertook certain government services; the problems of private enterprise when encountering competition by state agencies or nonprofit corporations; the accounting procedures of state agencies regarding commercial activities; the fiscal impact on state taxes in transferring certain existing state activities to the private sector; any other issues concerning unfair competition.
The commission shall makes its preliminary report to the Legislature and governor by January 1, 1989. The commission ceases to exist on July 1, 1991.
EFFECT OF PROPOSED SUBSTITUTE:
The composition of the committee is changed to consist of eight legislators, eight governmental employees, and eight members of the private sector business community. The commission is directed to examine business activities of state and local government which are also performed by private sector enterprises, and: (1) identify potential benefits if certain state and local government business activities were performed by the private sector; (2) identify potential benefits if certain business activities now contracted with the private sector 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, or which restrict state and local governments from performing activities normally performed by private sector businesses; (4) 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; (5) examine the tax impact if activities performed by state and local government and private sector businesses were shifted; (6) review the effectiveness of the law relating to commercial activities by institutions of higher education; (7) 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 appointed by the President of the Senate and four House members 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)