HCS HB 1676 -- COMPETITIVE GOVERNMENT ACT

SPONSOR:  Bearden

COMMITTEE ACTION:  Voted "do pass" by the Committee on Budget by
a vote of 13 to 8.

This substitute creates the Competitive Government Act which,
beginning in Fiscal Year 2005, requires all agencies to submit to
the Office of Administration every other year a list of their
activities that could be performed by the private sector.  The
Office of Administration and the State Competition Council, when
established, will review the list and consult with the agencies
involved.  The Commissioner of the Office of Administration in
coordination with the council will establish the necessary rules.

Agencies will prepare a competitive sourcing plan as prescribed
by the council and select one or more activities from the
published list to undergo competition.  When determining whether
to contract with the private sector, the costs of procuring the
service will be compared with the full costs to the agency
including quality assurance, technical monitoring, and all
overhead costs.

The substitute also provides that interested parties can
challenge an omission or inclusion of a particular activity on
the list, which will receive an administrative review.

Winning bidders will enter into a performance-based contract with
the agency and provide administration and performance reports to
the public annually.  These reports will be posted on the
agency's web site.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill will reduce the costs
of government programs.  Contracting with businesses already
having knowledge and skills for required services can reduce
costs and be more efficient.

Testifying for the bill were Representative Yates; Missouri
Chamber of Commerce and Industry; and World Wide Technology.

OPPONENTS:  Those who oppose the bill say that the bill will take
jobs away from state employees and will cost the state more money
in the long run.

Testifying against the bill were Carpenters' District Council of
Kansas City; Carpenters' District Council of Greater St. Louis;
American Federation of State, County, and Municipal Employees;
and Missouri AFL-CIO.

OTHERS:  There was no opposition voiced to the committee.

Marc Webb, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am