Senate Bill sb1158

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    Florida Senate - 2001                                  SB 1158

    By Senator Mitchell





    4-462A-01

  1                      A bill to be entitled

  2         An act relating to state government; creating

  3         s. 14.204, F.S.; creating the State Council on

  4         Competitive Government; providing for

  5         appointment of members, powers, and duties;

  6         providing for review of government services and

  7         functions in relation to the performance of

  8         those services and functions by nongovernment

  9         providers; providing criteria for review;

10         providing for contract recommendations;

11         repealing s. 14.023, F.S., which provides for a

12         State Council on Competitive Government;

13         providing an effective date.

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15  Be It Enacted by the Legislature of the State of Florida:

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17         Section 1.  Section 14.204, Florida Statutes, is

18  created to read:

19         14.204  State Council on Competitive Government.--

20         (1)  DEFINITIONS.--As used in this section, the term:

21         (a)  "Commercial activity" means an activity that

22  provides a product or service that is commonly available from

23  a private source.

24         (b)  "Council" means the State Council on Competitive

25  Government.

26         (c)  "Identified state service" means a service

27  provided by the state which the council has identified as a

28  commercially available service and which the council has

29  brought under study to determine whether the service may be

30  provided by private sources through competition.

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  1         (d)  "Privatization" means the transfer of government

  2  functions, assets, agencies, management, products or

  3  productive capacity, financing, or service delivery from the

  4  government sector to the nongovernment sector.

  5         (2)  STATE COUNCIL ON COMPETITIVE GOVERNMENT.--The

  6  State Council on Competitive Government is established. It is

  7  the policy of this state that all state services be performed

  8  in the most effective and efficient manner in order to provide

  9  the best value to the public. The state recognizes that

10  competition among service providers may improve the quality of

11  services provided. The council shall encourage competition,

12  innovation, and creativity among service providers and within

13  the public sector.

14         (3)  MEMBERSHIP.--The council shall consist of 9

15  members appointed as follows: two members appointed by the

16  Governor, one of whom must be from the government sector; two

17  appointees of the Governor and Cabinet, one of whom must be

18  from the government sector; the Director of the Legislature's

19  Office of Program Policy and Government Accountability; two

20  members appointed by the President of the Senate; and two

21  members appointed by the Speaker of the House of

22  Representatives. The council shall select its presiding

23  officer from its membership. The council shall meet as often

24  as necessary to perform its duties.

25         (4)  DUTIES.--

26         (a)  The council shall identify commercially available

27  services currently being performed by state agencies and, if

28  the council finds that any services of an agency can be better

29  provided through competition with private sources or other

30  state agency service providers, the council may recommend that

31  the state agency engage in any process, including competitive

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  1  bidding, which is recommended by the council to provide the

  2  service through competition among private sources or with

  3  other state-agency service providers.

  4         (b)  The council shall review and comment on all

  5  requests for proposals, invitations to bid, invitations to

  6  negotiate, or contracts issued by state agencies which propose

  7  privatization of funded government services. Each state agency

  8  shall submit all of its privatization proposals costing

  9  $100,000 or more to the council for its review before any

10  action is taken by the agency.

11         (c)  The council shall review all existing instances in

12  which state-government-funded services have been privatized in

13  order to comment on whether the services are being performed

14  in the most effective and efficient manner to provide the best

15  value to the public.

16         (5)  POWERS.--In performing its duties under this

17  section, the council may:

18         (a)  Adopt rules governing any aspect of the council's

19  duties or responsibilities.

20         (b)  Hold public hearings or conduct studies.

21         (c)  Consult with private sources or state agencies

22  that provide services.

23         (d)  Recommend that a state agency conduct an in-house

24  cost estimate, a management study, or any other hearing,

25  study, review, or cost estimate concerning any aspect of an

26  identified state service.

27         (e)  Develop for use by state agencies methods to

28  accurately and fairly estimate and account for the cost of

29  providing an identified state service.

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  1         (f)  Recommend that an identified state service be

  2  submitted to competitive bidding or another process that

  3  creates competition among private sources.

  4         (g)  Suggest, in consultation with affected state

  5  agencies, the specifications and conditions of purchase

  6  procedures that should be followed by a state agency or a

  7  private source engaged in competitive bidding to provide an

  8  identified state service.

  9         (h)  Recommend the award of a contract to a state

10  agency currently providing the service, another state agency,

11  a private source, or any combination of those entities if the

12  bidder presents the best and most reasonable bid, which is not

13  necessarily the lowest bid.

14         (i)  Suggest the terms and conditions of a contract for

15  service or an interagency contract to provide an identified

16  state service or other commercially available service.

17         (j)  Recommend a minimum level of contractor health

18  insurance coverage for employees, including optional family

19  coverage, whether employer-paid or employee-paid or a

20  combination thereof.

21         (k)  Encourage state employees to organize and submit a

22  bid for the identified service.

23         (6)  COST COMPARISON AND CONTRACT CONSIDERATIONS.--In

24  comparing the cost of providing a service, the council must

25  consider the cost of supervising the work of any private

26  contractor, including an analysis of whether health-care

27  benefits, retirement, and workers' compensation insurance for

28  employees of the contractor are reasonably comparable to

29  benefits provided by the state. The council must also consider

30  the total cost to the agency of that agency's performance of a

31  service, such total cost to include all indirect costs related

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  1  to that agency and the costs of agencies such as the

  2  Comptroller, the Treasurer, the Attorney General, and other

  3  support agencies. In reviewing proposals submitted by state

  4  agencies or in making recommendations for actions to be

  5  undertaken by state agencies in privatization or in making

  6  recommendations for investments in productive improvements to

  7  public-sector agencies, the council shall consider the

  8  following:

  9         (a)  Whether two or more state agencies provide an

10  essentially similar service to a like population with little

11  or no value added by multiple jurisdictions.

12         (b)  Whether the public-sector service has been created

13  in response to a short-term need or abuse, and any subsequent

14  actions that have satisfactorily addressed the need or

15  remedied the abuse with sufficient protection to the affected

16  public.

17         (c)  Whether the program, service, or deployment of

18  resources exists because of a commitment to job-based tasks

19  that prove unnecessary in light of alternative

20  technology-based processes.

21         (d)  Whether market forces can address the program or

22  service for its satisfactory operation in a nongovernment

23  context.

24         (e)  Whether the program or service is peripheral to

25  the core mission of state government regardless of the

26  efficiency of the state-agency operation.

27         (f)  Whether the service or program provides a subsidy

28  that the general population can obtain from a nongovernment

29  provider without loss of integrity or unreasonable cost.

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  1         (g)  Whether the selected program or service unduly

  2  affects economically or geographically disadvantaged segments

  3  of the workforce from receiving subsequent employment.

  4         (h)  Whether the nongovernment provider has made

  5  satisfactory provisions to avoid service interruption,

  6  provisions for employment by displaced public-sector

  7  employees, and provisions for maintenance of the quality and

  8  accessibility of the contracted service.

  9         (i)  Whether privatization of the program or service

10  would impair the integrity of the regulatory powers of state

11  government or its sworn enforcement of functions conferred on

12  it by law.

13         (j)  Whether the alternative method of providing

14  government services adds value. For the purposes of this

15  section, an alternative method adds value if it achieves one

16  or more government-sector objectives with improvement outcomes

17  irrespective of cost; achieves more outcomes within a fixed

18  amount of appropriation; improves accuracy, timeliness, or

19  responsiveness by employees on behalf of customers, clients,

20  or the public; reduces unit costs; or reduces the cost of

21  sales and general administrative expenses.

22         (7)  DUTIES OF AFFECTED STATE AGENCIES.--A state agency

23  shall cooperate with the council in the performance of its

24  duties under this section.

25         (8)  EXEMPTION.--Any contract entered into pursuant to

26  council recommendations and decisions regarding whether an

27  agency will engage in competitive bidding with respect to such

28  a contract is exempt from all laws of the state regulating or

29  limiting state purchasing and purchasing decisions.

30         (9)  CONTRACT RECOMMENDATIONS; APPROPRIATIONS.--A

31  contract entered into under this section constitutes an

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  1  executive branch recommendation only and does not take effect

  2  until a specific appropriation to fund the contract is

  3  provided by law. In addition, any contract entered into by an

  4  executive-branch agency under this section must state in its

  5  text that its effect is contingent upon a specific

  6  appropriation by law. However, a contract entered into

  7  pursuant to this section may not impair the actions of any

  8  executive branch agency whose powers are derived directly from

  9  the State Constitution or impair any contractual or statutory

10  obligations imposed by state or federal law or a grant-in-aid

11  program.

12         (10)  OPEN MEETINGS AND OPEN RECORDS LAWS.--The

13  meetings and records of the council are subject to the

14  provisions of ss. 119.07 and 286.011.

15         (11)  REIMBURSEMENT FOR EXPENSES.--Members of the

16  council are not entitled to receive a salary but may be

17  reimbursed for expenses under s. 112.061.

18         Section 2.  Section 14.023, Florida Statutes, is

19  repealed.

20         Section 3.  This act shall take effect July 1, 2001.

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23                          SENATE SUMMARY

24    Creates a new State Council on Competitive Government and
      provides for its membership, powers, and duties. Provides
25    for review of government services and functions in
      relation to the performance of those services and
26    functions by nongovernment providers. Repeals the
      existing Council on Competitive Government.
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