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CSSB 33(FIN): "An Act relating to contracts for the performance of certain state functions previously performed by state employees and to the Commission on Privatization and Delivery of Government Services; and providing for an effective date."

00CS FOR SENATE BILL NO. 33(FIN) 01 "An Act relating to contracts for the performance of certain state functions 02 previously performed by state employees and to the Commission on Privatization 03 and Delivery of Government Services; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. FINDINGS AND INTENT. (a) The legislature finds that 06 (1) the annual cost of state government is exceeding the annual revenue of the 07 state; 08 (2) the State of Alaska, other states, and the federal government have 09 successfully and substantially reduced government spending and increased government 10 efficiency by contracting with third parties to perform particular state or government functions; 11 (3) there may be functions of our current state government that can be 12 performed more efficiently by any or all of the following entities: 13  (A) nongovernmental or private organizations; 14  (B) local government or regional service organizations;

01 (4) there may be functions that state government should not continue to 02 perform, but should leave to the federal government; 03 (5) there may be state government functions that should be consolidated or 04 otherwise performed more efficiently; 05 (6) there exist state government functions that would be inappropriate to 06 contract out to nongovernmental agencies. 07 (b) The legislature finds it is in the best interest of the state to make a formal 08 determination of which state government functions can and should be transferred entirely to 09 private entities or to local government agencies and whether the state should stop performing 10 some functions for the federal government. The legislature also finds that it is in the best 11 interest of the state to determine which state government functions can be consolidated or 12 otherwise made more efficient. 13 (c) The legislature intends to make the determination set out in (b) of this section in 14 order to reduce dependency on state governmental revenues for the delivery of government 15 services. 16 * Sec. 2. AS 23.40.075 is amended to read: 17  Sec. 23.40.075. Items not subject to bargaining. The parties may not 18 negotiate terms contrary to the 19  (1) reemployment rights for injured state employees under 20 AS 39.25.158; 21  (2) reemployment rights of the organized militia under AS 26.05.075; 22  (3) authority of the Department of Health and Social Services under 23 AS 47.27.035 to assign Alaska temporary assistance program participants to a work 24 activity considered appropriate by the Department of Health and Social Services; [OR] 25  (4) authority for agencies to create temporary positions under 26 AS 47.27.055(c) ; or 27  (5) unrestricted authority of the employer to enter into a contract 28 with an entity in the private sector of the economy to perform a function 29 previously performed by state employees . 30 * Sec. 3. AS 23.40.080 is amended by adding a new subsection to read: 31  (b) If the state intends to enter into a contract with an entity in the private

01 sector of the economy to perform a function previously performed by state employees, 02 the labor or employee organization representing those employees may prepare and 03 submit a response on behalf of the employees to demonstrate that the state will not 04 reduce costs by contracting for performance of the function. The response prepared 05 and submitted by the labor or employee organization is not entitled to a preference 06 over bids submitted to perform the function, but the state shall consider the response 07 before making its decision. 08 * Sec. 4. Nothing in secs. 2 and 3 of this Act terminates or modifies a collective 09 bargaining agreement in effect on the effective date of this Act. 10 * Sec. 5. COMMISSION ON PRIVATIZATION AND DELIVERY OF GOVERNMENT 11 SERVICES. (a) There is created in the legislative branch of the state government the 12 Commission on Privatization and Delivery of Government Services. The commission shall 13 consist of 11 members, as follows: 14 (1) two members appointed by the governor, one of whom shall be a 15 representative of the labor unions; 16 (2) one member of the senate appointed by the president of the senate who 17 shall serve as co-chair; 18 (3) one member of the house appointed by the speaker of the house who shall 19 serve as co-chair; 20 (4) one member appointed by the Alaska Municipal League; 21 (5) one member of the local boundary commission appointed by the local 22 boundary commission; 23 (6) two public members appointed by the president of the senate; 24 (7) two public members appointed by the speaker of the house; 25 (8) one member appointed by the Alaska State Chamber of Commerce. 26 (b) The commission may appoint an advisory council to assist it in carrying out its 27 duties. 28 * Sec. 6. COMPENSATION. (a) The public members of the Commission on Privatization 29 and Delivery of Government Services appointed under sec. 5(a)(6) and (7) of this Act are not 30 eligible for compensation but are entitled to per diem and travel expenses authorized for 31 boards and commissions under AS 39.20.180.

01 (b) Members of the advisory council appointed under sec. 5(b) of this Act are not 02 eligible for compensation, per diem, or payment of travel or other expenses by the state. 03 * Sec. 7. MEETINGS. The Commission on Privatization and Delivery of Government 04 Services shall meet as frequently as the commission determines necessary to perform its work. 05 The commission may meet and vote by teleconference. 06 * Sec. 8. DUTIES. (a) The Commission on Privatization and Delivery of Government 07 Services shall 08 (1) review and evaluate the policies and recommendations of other states that 09 are studying or have implemented recommendations to transfer the provision of government 10 services to other entities; 11 (2) review state contracting policy and procedures, including competitive 12 bidding procedures; 13 (3) identify state government functions capable of more efficient performance 14 in the delivery of government services, and determine whether those identified functions could 15 most effectively be provided by 16  (A) transferring to the private sector or contracting out; 17  (B) transferring to local governments or regional service organizations; 18  (C) the federal government; 19  (D) consolidation or other efficiency changes; or 20  (E) a combination of the approaches under (A) - (D) of this paragraph; 21 (4) identify present state government services that are most effectively and 22 efficiently delivered by the state and that should remain a responsibility of the state; 23 (5) solicit public comment about the delivery of state government services. 24 (b) By January 1, 2000, the Commission on Privatization and Delivery of Government 25 Services shall submit a written report of its findings and recommendations to the governor and 26 the legislature. The report must include suggested legislation that may be needed to 27 accomplish the recommendations. The report must specify which state agencies or functions 28 should be 29 (1) transferred to the private sector or contracted out; 30 (2) transferred to local governments or regional service organizations; 31 (3) consolidated or otherwise made more efficient;

01 (4) performed by the federal government. 02 * Sec. 9. Sections 1 and 5 - 8 of this Act are repealed on January 1, 2000. 03 * Sec. 10. This Act takes effect immediately under AS 01.10.070(c).