GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 31

Short Title:  Competitive Government Initiative.	(Public)

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Sponsors: Representatives Baker; Davis, Hill, Church, Buchanan, Morris, Clary, Gulley, Shubert, and Arnold.

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Referred to:  State Government.

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February 4, 1997

A BILL TO BE ENTITLED
AN ACT ESTABLISHING THE NORTH CAROLINA GOVERNMENT COMPETITION COMMISSION TO PROVIDE FOR BETTER GOVERNMENT IN NORTH CAROLINA THROUGH A COMPREHENSIVE STATE GOVERNMENT COMPETITION INITIATIVE.
The General Assembly of North Carolina enacts:
Section 1.  The General Statutes are amended by adding a new Chapter to read:
“Chapter 143C.
“North Carolina Government Competition Act of 1997.
"§ 143C-1.  Short title.
This Chapter shall be known and may be cited as the ‘North Carolina Government Competition Act.'
"§ 143C-2.  Definitions.
As used in this Chapter, unless the context otherwise requires:
(1)	‘Commission' means the North Carolina Government Competition Commission.
(2)	‘State agency' means any State department, agency, or institution.
"§ 143C-3.  North Carolina Government Competition Commission created; duties.
(a)	There is hereby created the North Carolina Government Competition Commission.  The purpose of the Commission is to be the catalyst to cause the use of competition to improve the delivery of State government services, to make State government more effective and more efficient, and to reduce the costs of government to taxpayers.
(b)	The Commission shall:
(1)	Develop an institutional framework for a statewide competition initiative to encourage innovation and competition within State government.
(2)	Establish a system to encourage the use of feasibility studies and innovation to determine where competition could reduce government costs without adversely affecting essential services.
(3)	Monitor the activities, products, and services of State agencies to bring an element of competition and to ensure a spirit of innovation and entrepreneurship to compete with the private sector to increase the quality of services or reduce costs to taxpayers.
(4)	Identify any barriers to competition in State government and recommend actions to overcome those barriers.
(5)	Promote acceptance of competition by State government officials and State employees as a viable alternative to in-house operations for delivering State government services where savings to the State may be realized through competition, including the development and implementation of State employee adjustment and incentive programs.
(6)	Advocate, develop, and accelerate implementation of a competitive program for State agencies to ensure competition for the provision or production of government services from both public sector and private sector entities.
(7)	Establish approval, planning, and reporting processes required to carry out the functions of the Commission.
(8)	Determine the competition potential of a State program or activity, perform cost and benefit analyses, and conduct public and private competition analyses.
(9)	Devise evaluation criteria to be used in conducting performance reviews of any State program or activity which is subject to a competition recommendation.
(10)	Assess the short-term and long-term results of State government competition efforts.
(11)	Appoint, as needed, ad hoc committees relating to specific matters within the Commission's purview.
"§ 143C-4.  Membership; appointment; terms; vacancies; chair; quorum; compensation.
(a)	The Commission shall be composed of nine members to be appointed as follows:
(1)	Three members appointed by the Governor, one of whom shall be a State employee and two of whom shall be members of the private sector.
(2)	Three members appointed by the Speaker of the House of Representatives, two of whom shall be members of the private sector.
(3)	Three members appointed by the President Pro Tempore of the Senate, two of whom shall be members of the private sector.
Members of the Commission shall serve two-year terms.  In making the initial appointments to the Commission, the respective appointing authorities shall appoint at least one member for a one-year term so that subsequent terms stagger.
(b)	All initial appointments shall be effective July 1, 1997. The initial members' terms shall end on June 30 of the applicable year in which a term expires, with the subsequent term beginning on July 1 of that year.  No member may serve more than two consecutive terms. Vacancies shall be filled by the appointing authority for any unexpired portion of a term. Members shall receive subsistence, per diem, and travel allowances as provided by G.S. 138-5.
(c)	A majority of the members shall constitute a quorum.  The Commission shall annually elect its chair and vice-chair from among its members.
"§ 143C-5.  Cooperation of other State agencies.
All State agencies shall cooperate with the Commission and, upon request, assist the Commission in the performance of its duties and responsibilities.  The Commission shall not impose unreasonable burdens or costs in connection with requests of State agencies.
"§ 143C-6.  Staff support; application for and acceptance of gifts and grants; authority to enter into contract.
(a)	The Office of State Budget and Management shall provide staff support to the Commission to enable it to perform its duties as provided by this Chapter.
(b)	The Commission may apply for, accept, and expend gifts, grants, or donations from public or private sources to enable it to better carry out its objectives.  No entity which provides a gift, donation, or grant shall be eligible for a contract award which results from action of a Commission recommendation.
(c)	The Commission may enter into contracts for professional or consultant service.
"§ 143C-7.  Public-private competition analysis; proposals for competition.
(a)	The Governor or the General Assembly may direct any State agency to perform a public-private competition analysis covering any service for which the Commission has received a qualifying unsolicited proposal for competition from a private entity which is consistent with the Commission's purposes and duties as provided by this Chapter.
(b)	The Commission may solicit competition proposals from private entities in order to make cost comparison decisions.
"§ 143C-8.  Duties of the Office of State Budget and Management.
The Office of State Budget and Management shall determine the amount of an existing appropriation that would no longer be needed by a State agency as the result of savings realized through competition and shall report annually, by February 1, the nature and amount of the savings to the Governor and to the General Assembly.
"§ 143C-9.  Reports to the Governor and General Assembly.
The Commission shall report annually, by February 1, its findings and recommendations to the Governor and to the General Assembly and may make other interim reports it deems advisable.  By February 1, 1999, the Commission shall make a special report of its progress to the Governor and to the General Assembly."
Section 2.  This act is effective when it becomes law and expires June 30, 2001.