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1996 SESSION

962110801
HOUSE BILL NO. 596
Offered January 19, 1996
A BILL to amend and reenact §§ 2.1-1.3, 2.1-1.6, 2.1-1.7, and 9-6.23, as it is currently effective and as it may become effective, of the Code of Virginia; to amend the Code of Virginia by adding in Chapter 32 of Title 2.1 an article numbered 5.4, consisting of sections numbered 2.1-526.23 through 2.1-526.32; and to repeal Chapter 45 (§§ 9-340 through 9-349) of Title 9 of the Code of Virginia, relating to the Virginia Government Competition Act of 1996.
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Patrons-- Purkey and Tata
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Referred to Committee on General Laws
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Be it enacted by the General Assembly of Virginia:

1. That §§ 2.1-1.3, 2.1-1.6, 2.1-1.7, and 9-6.23, as it is currently effective and as it may become effective, of the Code of Virginia are amended and reenacted, and that the Code of Virginia is amended by adding in Chapter 32 of Title 2.1 an article numbered 5.4, consisting of sections numbered 2.1-526.23 through 2.1-526.32, as follows:

§ 2.1-1.3. Entities subject to standard nomenclature.

The following independent administrative entities are subject to the standard nomenclature provisions of § 2.1-1.2:

Chesapeake Bay Local Assistance Department.

Commonwealth Competition Council.

Department of Accounts.

Department for the Aging.

Department of Agriculture and Consumer Services.

Department of Alcoholic Beverage Control.

Department of Aviation.

Department of Conservation and Recreation.

Department of Correctional Education.

Department of Corrections.

Department of Criminal Justice Services.

Department for the Deaf and Hard-of-Hearing.

Department of Economic Development.

Department of Education.

Department of Emergency Services.

Department of Environmental Quality.

Department of Employee Relations Counselors.

Department of Fire Programs.

Department of Forestry.

Department of Game and Inland Fisheries.

Department of General Services.

Department of Health.

Department of Health Professions.

Department of Historic Resources.

Department of Housing and Community Development.

Department of Information Technology.

Department of Labor and Industry.

Department of Medical Assistance Services.

Department of Mental Health, Mental Retardation and Substance Abuse Services.

Department of Military Affairs.

Department of Mines, Minerals and Energy.

Department of Minority Business Enterprise.

Department of Motor Vehicles.

Department of Personnel and Training.

Department of Planning and Budget.

Department of Professional and Occupational Regulation.

Department of Rail and Public Transportation.

Department of Rehabilitative Services.

Department for Rights of Virginians With Disabilities.

Department of Social Services.

Department of State Police.

Department of Taxation.

Department of Transportation.

Department of the Treasury.

Department of Veterans' Affairs.

Department for the Visually Handicapped.

Department of Youth and Family Services.

Governor's Employment and Training Department.

§ 2.1-1.6. State boards.

A. There shall be, in addition to such others as may be established by law, the following permanent collegial bodies affiliated with a state agency within the executive branch:

Accountancy, Board for

Aging, Advisory Board on the

Agriculture and Consumer Services, Board of

Air Pollution, State Advisory Board on

Alcoholic Beverage Control Board, Virginia

Apple Board, Virginia State

Appomattox State Scenic River Advisory Board

Aquaculture Advisory Board

Architects, Professional Engineers, Land Surveyors and Landscape Architects, State Board for

Art and Architectural Review Board

Athletic Board, Virginia

Auctioneers Board

Audiology and Speech-Language Pathology, Board of

Aviation Board, Virginia

Barbers, Board for

Branch Pilots, Board for

Bright Flue-Cured Tobacco Board, Virginia

Building Code Technical Review Board, State

Catoctin Creek State Scenic River Advisory Board

Cattle Industry Board, Virginia

Cave Board

Certified Seed Board, State

Chesapeake Bay Local Assistance Board

Chickahominy State Scenic River Advisory Board

Child Abuse and Neglect, Advisory Board on

Chippokes Plantation Farm Foundation, Board of Trustees

Clinch Scenic River Advisory Board

Coal Mining Examiners, Board of

Coal Research and Development Advisory Board, Virginia

Coal Surface Mining Reclamation Fund Advisory Board

Coastal Land Management Advisory Council, Virginia

Commonwealth Competition Council

Conservation and Development of Public Beaches, Board on

Conservation and Recreation, Board of

Contractors, Board for

Corn Board, Virginia

Correctional Education, Board of

Corrections, State Board of

Cosmetology, Board for

Criminal Justice Services Board

Dark-Fired Tobacco Board, Virginia

Deaf and Hard-of-Hearing, Advisory Board for the Department for the

Dentistry, Board of

Education, State Board of

Egg Board, Virginia

Emergency Medical Services Advisory Board

Employment Agency Advisory Board

Farmers Market Board, Virginia

Film Office Advisory Board

Fire Services Board, Virginia

Forensic Science Advisory Board

Forestry, Board of

Funeral Directors and Embalmers, Board of

Game and Inland Fisheries, Board of

Geology, Board for

Goose Creek Scenic River Advisory Board

Health Planning Board, Virginia

Health Professions, Board of

Health, State Board of

Hearing Aid Specialists, Board for

Hemophilia Advisory Board

Historic Resources, Board of

Housing and Community Development, Board of

Industrial Development Services Advisory Board

Insurance Advisory Board, State

Irish Potato Board, Virginia

Laboratory Services Advisory Board

Litter Control and Recycling Fund Advisory Board

Marine Products Board, Virginia

Medical Advisory Board, Department of Motor Vehicles

Medical Board of the Virginia Retirement System

Medicare and Medicaid, Advisory Board on

Medicine, Board of

Mental Health, Mental Retardation and Substance Abuse Services Board, State

Migrant and Seasonal Farmworkers Board

Military Affairs, Board of

Mineral Mining Examiners, Board of

Minority Business Enterprise, Interdepartmental Board of the Department of

Networking Users Advisory Board, State

Nottoway State Scenic River Advisory Board

Nursing, Board of

Nursing Home Administrators, Board of

Occupational Therapy, Advisory Board on

Oil and Gas Conservation Board, Virginia

Opticians, Board for

Optometry, Board of

Peanut Board, Virginia

Personnel Advisory Board

Pesticide Control Board

Pharmacy, Board of

Physical Therapy to the Board of Medicine, Advisory Board on

Plant Pollination Advisory Board

Polygraph Examiners Advisory Board

Pork Industry Board, Virginia

Poultry Products Board, Virginia

Private College Advisory Board

Private Security Services Advisory Board

Professional and Occupational Regulation, Board for

Professional Counselors, Board of

Professional Soil Scientists, Board for

Psychiatric Advisory Board

Psychology, Board of

Public Buildings Board, Virginia

Public Telecommunications Board, Virginia

Radiation Advisory Board

Real Estate Appraiser Board

Real Estate Board

Reciprocity Board, Department of Motor Vehicles

Recreational Fishing Advisory Board, Virginia

Recreation Specialists, Board of

Reforestation Board

Rehabilitation Providers, Advisory Board on

Rehabilitative Services, Board of

Respiratory Therapy, Advisory Board on

Retirement System Review Board

Rockfish State Scenic River Advisory Board

Safety and Health Codes Board

Seed Potato Board

Sewage Handling and Disposal Appeal Review Board, State Health Department

Shenandoah State Scenic River Advisory Board

Small Business Advisory Board

Small Business Environmental Compliance Advisory Board

Small Grains Board, Virginia

Social Services, Board of

Social Work, Board of

Soil and Water Conservation Board, Virginia

Soybean Board, Virginia

State Air Pollution Control Board

Substance Abuse Certification Board

Surface Mining Review, Board of

Sweet Potato Board, Virginia

T & M Vehicle Dealers' Advisory Board

Teacher Education and Licensure, Advisory Board on

Tourism and Travel Services Advisory Board

Transportation Board, Commonwealth

Transportation Safety, Board of

Treasury Board, The, Department of the Treasury

Veterans' Affairs, Board on

Veterinary Medicine, Board of

Virginia Board for Asbestos Licensing

Virginia Coal Mine Safety Board

Virginia Correctional Enterprises Advisory Board

Virginia Employment Commission, State Advisory Board for the

Virginia Higher Education Tuition Trust Fund, Board of the

Virginia Horse Industry Board

Virginia Manufactured Housing Board

Virginia Retirement System, Board of Trustees

(For effective date - See Editor's note) Virginia Sheep Industry Board

Virginia Veterans Cemetery Board

Virginia Waste Management Board

Visually Handicapped, Virginia Board for the

Voluntary Formulary Board, Virginia

War Memorial Foundation, Virginia, Board of Trustees

Waste Management Facility Operators, Board for

Water Resources Research Center Statewide Advisory Board, Virginia

Waterworks and Wastewater Works Operators, Board for

Well Review Board, Virginia

Youth and Family Services, State Board of.

B. Notwithstanding the definition for "board" as provided in § 2.1-1.2, the following entities shall be referred to as boards:

Compensation Board

State Board of Elections

State Water Control Board

Virginia Parole Board

Virginia Veterans Care Center Board of Trustees.

§ 2.1-1.7. State councils.

A. There shall be, in addition to such others as may be established by law, the following permanent collegial bodies either affiliated with more than one agency or independent of an agency within the executive branch:

Adult Education and Literacy, Virginia Advisory Council for

Agricultural Council, Virginia

Alcohol and Drug Abuse Problems, Governor's Council on

Apprenticeship Council

Blue Ridge Regional Education and Training Council

Child Day Care and Early Childhood Programs, Virginia Council on

Child Day-Care Council

Citizens' Advisory Council on Furnishing and Interpreting the Executive Mansion

Commonwealth Competition Council

Commonwealth's Attorneys' Services Council

Developmental Disabilities Planning Council, Virginia

Disability Services Council

Equal Employment Opportunity Council, Virginia

Health Services Cost Review Council, Virginia

Housing for the Disabled, Interagency Coordinating Council on

Human Rights, Council on

Human Services Information and Referral Advisory Council

Indians, Council on

Interagency Coordinating Council, Virginia

Job Training Coordinating Council, Governor's

Land Evaluation Advisory Council

Local Debt, State Council on

Maternal and Child Health Council

Military Advisory Council, Virginia

Needs of Handicapped Persons, Overall Advisory Council on the

Prevention, Virginia Council on Coordinating

Public Records Advisory Council, State

Rate-setting for Children's Facilities, Interdepartmental Council on

Revenue Estimates, Advisory Council on

Southside Virginia Marketing Council

Specialized Transportation Council

State Health Benefits Advisory Council

Status of Women, Council on the

Technology Council, Virginia

Virginia Business-Education Partnership Program, Advisory Council on the

Virginia Recycling Markets Development Council.

B. Notwithstanding the definition for "council" as provided in § 2.1-1.2, the following entities shall be referred to as councils:

Council on Information Management

Higher Education, State Council of

Independent Living Council, Statewide

Rehabilitation Advisory Council, Statewide

Rehabilitation Advisory Council for the Blind, Statewide

World Trade Council, Virginia.

Article 5.4.
Virginia Government Competition Act of 1996.

§ 2.1-526.23. Short title.

This article shall be known and may be cited as the "Virginia Government Competition Act of 1996."

§ 2.1-526.24. Definitions.

As used in this article, unless the context otherwise requires:

"Council" means the Commonwealth Competition Council.

"Privatization" means an variety of techniques and activities which promote more involvement of the private sector in providing services that have traditionally been provided by government. It also includes methods of providing a portion or all of select government-provided or government-produced programs and services through the private sector.

"State agency" means any board, council, authority, department, agency, or institution of the Commonwealth which employs state or nonstate personnel.

§ 2.1-526.25. Commonwealth Competition Council created; duties.

There is hereby created in the Department of General Services the Commonwealth Competition Council. The Council shall:

1. Examine and promote methods of providing a portion or all of select government-provided or government-produced programs and services through the private sector by a competitive contracting program, and advise the Governor, the General Assembly, and executive branch agencies of the Council's findings and recommendations.

2. Develop an institutional framework for a statewide competitive program to encourage innovation and competition within state government.

3. Establish a system to encourage the use of feasibility studies and innovation to determine where competition could reduce government costs without harming the public.

4. Monitor the 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.

5. Advocate, develop and accelerate implementation of a competitive program for state entities to ensure competition for the provision or production of government services, or both, from both public and private sector entities.

6. Establish approval, planning, and reporting processes required to carry out the functions of the Council.

7. Determine the privatization potential of a program or activity; perform cost/benefit analyses; and conduct public and private performance analyses. The Secretary of Finance shall independently certify the results of the comparison.

8. Devise, in consultation with the Secretary of Finance, evaluation criteria to be used in conducting performance reviews of any program or activity which is subject to a privatization recommendation.

9. To the extent practicable and to the extent that resources are available, make its services available for a fair compensation to any political subdivision of the Commonwealth.

§ 2.1-526.26. Membership; appointment; terms; vacancies; chairman; quorum; compensation.

A. The Council shall be composed of ten members to be appointed as follows: four employees of executive branch agencies to be appointed by the Governor; one member of the House of Delegates to be appointed by the Speaker of the House; one member of the Senate to be appointed by the Senate Committee on Privileges and Elections; two members of the private sector to be appointed by the Governor; one member of the private sector to be appointed by the Speaker of the House; and one member of the private sector to be appointed by the Senate Committee on Privileges and Elections.

B. Legislative members shall serve on the Council until the expiration of their terms of office or until their successors shall qualify. Two of the members who are employees of executive branch agencies and one member from the private sector appointed by the Governor shall be appointed for terms of one year. Two of the members who are employees of executive branch agencies and one member from the private sector appointed by the Governor shall be appointed for terms of two years. The nonlegislative members appointed by the Speaker of the House of Delegates and the Senate Committee on Privileges and Elections shall be appointed for terms of three years. Thereafter, all nonlegislative members of the Council shall be appointed for terms of three years.

C. Appointments to fill vacancies shall be for the unexipred terms. No person shall be eligible to serve for or during more than two successive three-year terms. Executive branch agency members shall serve only as long as they retain their positions.

D. The Council shall annually elect its chairman and vice chairman from among its members.

E. Six members of the Council shall constitute a quorum. No action shall be taken by the Council without the concurrence of at least six members.

F. Legislative members shall be compensated as specified in § 14.1-18, and all members of the Council shall be reimbursed for their actual expenses incurred in their duties.

§ 2.1-526.27. Cooperation of other state agencies.

All agencies of the Commonwealth shall cooperate with the Council and, upon request, assist the Council in the performance its duties and responsibilities. The Council shall not impose unreasonable burdens or costs in connection with requests of agencies.

§ 2.1-526.28. Staff support; application for an acceptance of gifts and grants.

A. The Council shall employ such staff as necessary to enable it to perform its duties as directed in the appropriation act.

B. The Council 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 Council recommendation.

§ 2.1-526.29. Unsolicited proposals.

The Governor or the General Assembly may direct any state agency to perform a public/private performance analysis covering any service for which the Council has received a qualifying unsolicited proposal from a private entity which is consistent with the Council's purposes and duties as provided in § 2.1-526.25.

§ 2.1-526.30. Public/private performance analysis.

A. The Council shall use the procurement methods cited in the Virginia Public Procurement Act (§ 11-35 et seq.) to solicit proposals and bids from private entities in order to make cost comparison decisions. However, the Council shall not execute contracts.

B. The Council shall explore methods to encourage state agencies to compete for contracts.

§ 2.1-526.31. Duties of the Department of Planning and Budget.

The Department of Planning and Budget shall determine the amount of existing appropriation no longer needed by the state agency or institution and shall unallot such funding. The Department shall also ensure that all appropriate reporting requirements to the Governor and the General Assembly are met. Nothing in this section shall preclude the Governor from recommending in future budget submissions the restoration of a portion of the original appropriation to the state agency or institution.

§ 2.1-526.32. Reports to Governor and General Assembly.

The Council shall annually by December 1 report its findings and recommendations to the Governor and the General Assembly. The Council may make interim reports to the Governor and the General Assembly as it deems advisable.

§ 9-6.23. (Effective until July 1, 1997) Prohibition against service by legislators on boards and commissions within the executive branch.

Members of the General Assembly shall be ineligible to serve on boards and commissions within the executive branch which are responsible for administering programs established by the General Assembly. Such prohibition shall not extend to boards and commissions engaged solely in policy studies or commemorative activities. If any law directs the appointment of any member of the General Assembly to a board or commission in the executive branch which is responsible for administering programs established by the General Assembly, such portion of such law shall be void, and the Governor shall appoint another person from the Commonwealth at large to fill such a position. The provisions of this section shall not apply, however, to members of the Board for Branch Pilots, who shall be appointed as provided for in § 54.1-901; to members of the Board on Veterans' Affairs, who shall be appointed as provided for in § 2.1-741; to members of the Council on Indians, who shall be appointed as provided for in § 9-138.1; to members of the Virginia Technology Council, who shall be appointed as provided for in § 9-145.51; to members of the Board of Trustees of the Southwest Virginia Higher Education Center, who shall be appointed as provided in § 23-231.3; to members of the Maternal and Child Health Council, who shall be appointed as provided for in § 9-318; to members of the Virginia Interagency Coordinating Council who shall be appointed as provided in § 2.1-750; to members of the Advisory Council on the Virginia Business-Education Partnership Program, who shall be appointed as provided in § 9-326; to members of the Workforce 2000 Advisory Council, who shall be appointed as provided in § 2.1-116.18; to members of the Advisory Commission on Welfare Reform, who shall be appointed as provided in § 63.1-133.44; to members of the Virginia Correctional Enterprises Advisory Board, who shall be appointed as provided in § 2.1-451.2; to members appointed to the Virginia Veterans Cemetery Board pursuant to § 2.1-739.2; to members of the Immigrant and Refugee Policy Council, who shall be appointed as provided in § 2.1-801; or to members of the Commonwealth Competition Commission Council, who shall be appointed as provided in § 9-343 § 2.1-526.26.

§ 9-6.23. (Effective July 1, 1997) Prohibition against service by legislators on boards and commissions within the executive branch.

Members of the General Assembly shall be ineligible to serve on boards and commissions within the executive branch which are responsible for administering programs established by the General Assembly. Such prohibition shall not extend to boards and commissions engaged solely in policy studies or commemorative activities. If any law directs the appointment of any member of the General Assembly to a board or commission in the executive branch which is responsible for administering programs established by the General Assembly, such portion of such law shall be void, and the Governor shall appoint another person from the Commonwealth at large to fill such a position. The provisions of this section shall not apply, however, to members of the Board for Branch Pilots, who shall be appointed as provided for in § 54.1-901; to members of the Board on Veterans' Affairs, who shall be appointed as provided for in § 2.1-741; to members of the Council on Indians, who shall be appointed as provided for in § 9-138.1; to members of the Virginia Technology Council, who shall be appointed as provided for in § 9-145.51; to members of the Board of Trustees of the Southwest Virginia Higher Education Center, who shall be appointed as provided in § 23-231.3; to members of the Maternal and Child Health Council, who shall be appointed as provided for in § 9-318; to members of the Virginia Interagency Coordinating Council who shall be appointed as provided in § 2.1-750; to members of the Advisory Council on the Virginia Business-Education Partnership Program, who shall be appointed as provided in § 9-326; to members of the Advisory Commission on Welfare Reform, who shall be appointed as provided in § 63.1-133.44; to members of the Virginia Correctional Enterprises Advisory Board, who shall be appointed as provided in § 2.1-451.2; to members appointed to the Virginia Veterans Cemetery Board pursuant to § 2.1-739.2; to members of the Immigrant and Refugee Policy Council, who shall be appointed as provided in § 2.1-801; or to members of the Commonwealth Competition Commission Council, who shall be appointed as provided in § 9-343 § 2.1-526.26.

2. That Chapter 45 (§§ 9-340 through 9-349) of Title 9 of the Code of Virginia is repealed.