SENATE BILL REPORT

SCR 8427

BYSenators Lee, Smitherman, Conner, Anderson, Cantu, Warnke, Saling, West and Bailey

Creating a joint select committee on nonprofit competition with the private sector.

Senate Committee on Economic Development & Labor

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

Majority Report:  That Substitute Senate Concurrent Resolution No. 8427 be substituted therefor, and the substitute resolution do pass.

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

Senate Staff:Jo-Ellen Thomas (786-7784)

                  February 3, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 2, 1988

BACKGROUND:

Both the private business sector and nonprofit organizations are important to Washington's economy.  The private business sector is concerned that it is competing with nonprofit organizations for the same customers.  During recent years, the Legislature has received testimony from representatives of for-profit businesses stating that nonprofit corporations are increasingly competing with private sector businesses in providing certain goods and services.

SUMMARY:

The Joint Select Committee on Nonprofit Competition with the Private Sector is created.  The Committee includes four Senate members, four House of Representatives members, four private business sector members, four nonprofit organization members, and four state agency members.  The Committee is required to review:  (1) For-profit and nonprofit organizations' tax and regulatory exemptions; (2) the extent of nonprofit organizations' involvement in unrelated business activities; (3) major areas of competition between for-profit and nonprofit organizations, and the historical background of the competition; (4) methods of possible cooperation between profit and nonprofit organizations; and, (5) what legislation, if any, is needed to reduce competition between for-profit and nonprofit organizations.  The Committee is directed to be constituted by May 1, 1988, and must have its first meeting by June 1, 1988.  The Committee reports its findings to the Governor by January 1, 1989.  Legislative committee members receive a statutory allowance.  Nonlegislative members are reimbursed for travel expenses.  All executive branch agencies having expertise in, or which are impacted by the competition issue are required to provide their services to the Committee.

EFFECT OF PROPOSED SUBSTITUTE:

The voting powers of state agency committee members are revoked.  The committee must make initial findings and recommendations for scope of work by January 1, 1989, with a final report due by January 1, 1990.  Both the allowance for legislative committee members and travel expense reimbursement for nonlegislative committee members are revoked.  Other revisions are technical in nature.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 20, 1988

Senate Committee - Testified: Bill Phillips, Emory Bundy, YMCA (for); Ben Lindekugel, United Way (for); Collins Sprague, AWB (for); Gerald Brong (for); Michael S. Doctor, Rehabilitation Enterprises of Washington (for); Nona Brazier, Rod Bristol, SBIC (for); Janet Divorne, Washington Hearing Aid Society (for); Don Forstrom, Washington State Pharmacists Association (for); Laura Eckert, Office of Secretary of State