Legislature(2001 - 2002)
03/29/2001 03:40 PM Senate STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 147-STATE GOVERNMENT ACTIVITIES
ANNETTE DEAL, staff for Senator Cowdery, introduced SB 147 as the
State concept of federal legislation enacted in 1998. It requires a
state agency to list those agency activities that are not
inherently governmental on an annual basis. An inherently
governmental function is defined as "a function that is so closely
related to the public interest that it requires performance by a
state governmental employee."
First, departments identify functions that are not inherently
governmental. Once the list is made, it is submitted to the
Department of Administration, Office of Management and Budget
(OMB). They make the list available to the public and the
legislature. Interested persons are then able to challenge what is
or is not on that list.
The idea is to make it easier for the public to understand which
functions are essential and which are not so they are better able
to understand what their dollars are paying for.
Step two asks for a realistic and fair cost to be attached to the
performance of the activities so a private individual would have
that information readily available if they wanted to consider
outsourcing. In addition, "it puts the state on the right track
toward government activities that we want and that we are willing
to pay for. It provides the basis for long term consistent efforts
towards cost-effective government."
The bill has a zero fiscal note from the Department of
Administration. She said that the bill is simply good management
practice and good management doesn't have a cost attached.
CHAIRMAN THERRIAULT asked if there are differences between the
legislation this year and that introduced previously.
MS. DEAL said that there were several House State Affairs committee
substitutes last year that are reflected in the current
legislation. Previous language referred to unions and putting work
out for a public bid. Also, the university was included last year
and is not in the present bill because they are working toward
greater efficiency on their own.
Some departments have already adopted these measures in their
missions and measures by identifying time allocations toward
certain projects or what is essential and what is not.
Another difference this year is that inherently governmental
activity means one that is required by the state constitution.
MR. BRAD PIERCE, a policy analyst with the Office of Management and
Budget, testified that the administration opposes the legislation
on the grounds that it is unnecessary and that the resulting report
would provide little useful information to the public and the
legislature that is not already available.
During the last three administrations, there has been an effort to
reduce the number of annual reports that departments are required
to produce in an effort to increase state productivity. In fact,
OMB has produced a report on reports recommending those reports
that may be eliminated to free employees to engage in more
productive activities. This bill is headed in the opposite
direction and although the fiscal note is zero, there is a cost in
terms of productivity to produce the report on a yearly basis. As
an example, the executive travel report costs about $15,000 per
year in employee time to produce.
The administration feels that the area is already well covered with
the legislature's Commission on Privatization's final report in the
fall of 1999. In the legislative research catalog, there are two
studies identifying mandated and discretionary programs, one on the
difficulty of defining basic services and a list of state programs
added in the last 20 years and whether they were constitutionally
or statutorily mandated.
Before that, there was Governor Hickel's 1992 Organizational and
Efficiency Task Force that made recommendations on privatization of
services. During that administration, there was also a hotline for
citizens to call in with suggestions on ways to reduce the cost of
government and activities that could be privatized.
The point is, the information the bill is after is already
available and the functions of government do not change that much
from year to year. With this in mind, the administration does not
feel that the legislation is necessary but instead will be a
bureaucratic burden to agencies.
CHAIRMAN THERRIAULT called for questions and other testimony.
SENATOR COWDERY commented that this is not a privatization bill. It
is designed to identify those activities that are not inherently
governmental. The previous testimony was focused to convince
members that this is a privatization measure.
CHAIRMAN THERRIAULT said there was no prepared CS. He asked
committee members for amendments. There were none. He noted the
zero fiscal note.
SENATOR PHILLIPS asked Mr. Pierce about the executive travel report
and whether the administration opposed preparation of the report.
He believes it's a good document that the public has a right to
see.
ALISON ELGEE, Deputy Commissioner of the Department of
Administration, testified that when the legislation was considered
for the compensations and travel report, it had a $15,000 fiscal
note that was unopposed by the administration. The legislature
elected to pass the legislation without the money so it placed the
monetary and labor burden on the Division of Finance. It is quite a
lot of work to coordinate all the records from the various
departments and get them into a format that can by published.
CHAIRMAN THERRIAULT asked for other questions or comments. There
were none.
He asked for the will of the committee.
SENATOR PEARCE moved SB 147 and zero fiscal note from committee
with individual recommendations. There was no opposition.
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