OK House Approves Bill To Create CompSource Pilot Program

Tulsa, OK (CompNewsNetwork) - Legislation allowing the state-run worker's compensation insurer to develop a three-year pilot program to help capture savings and improve services through exemption from certain purchasing and acquisition requirements has been passed by the Oklahoma House of Representatives.

House Bill 1755, by state Rep. Scott Martin, makes CompSource of Oklahoma an enterprise agency exempt from certain purchasing and acquisition provisions of Oklahoma law.

"Enterprise agencies are an innovative way to save taxpayers dollars and modernize an often archaic and burdensome governmental process," Martin, R-Norman, said. "With this bill we are bringing some of the best parts of the free enterprise system into state government. CompSource will be required to provide yearly reporting to the governor and legislative leaders. In addition, they will be required to promulgate rules in regards to purchasing and bidding, plus stop duplicative reporting requirements. This measure furthers earlier efforts this session to look at the mutualization of CompSource. If they are successful at realizing efficiencies and savings, I hope we can provide this opportunity to other state agencies."

Specifically, the agency would be exempt from compliance with the provision of the Oklahoma Central Purchasing Act, the Public Competitive Biding Act of 1974, the Oklahoma Surplus Purchasing Act and certain statutory provisions concerning Fleet Management and the State Construction Administrator of the Construction and Properties Division within the Department of Central Services. The measure also exempts CompSource Oklahoma from the requirements of the Office of State Finance related to budgetary reporting, information system plans and telecommunication plans.

"The intent of this legislation is to give the agency greater flexibility to produce better outcomes at less cost than under the current bureaucratic system," Martin said. "An enterprise agency wastes less time and money on paperwork and low-valued added rule compliance."

CompSource is a non-profit, self-sustaining insurance company created by the state in 1933 to provide a consistent, viable market for Oklahoma employers to obtain coverage that was both affordable and service-driven. 

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