In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

This Act may be cited as the ''Freedom from Government Competition
Act of 1996''.

SEC. 2. FINDINGS.

Congress finds and declares that--
(1) private sector business concerns, which are free to
respond to the private or public demands of the marketplace,
constitute the strength of the American economic system;
(2) competitive private enterprises are the most
productive, efficient, and effective sources of goods and
services;
(3) Government competition with the private sector of the
economy is detrimental to the American economic system;
(4) Government competition with the private sector of the
economy is at an unacceptably high level, both in scope and in
dollar volume;
(5) current law and policy have failed to address
adequately the problem of Government competition with the
private sector of the economy; and
(6) it is in the public interest that the Government
establish a consistent policy to rely on the private sector of
the economy to provide goods and services necessary for or
beneficial to the operation and management of Government
agencies and to avoid Government competition with the private
sector of the economy.

SEC. 3. PROCUREMENT FROM PRIVATE SOURCES.

(a) General Rule.--Notwithstanding any other provision of law,
except as provided in subsection (b), each agency shall obtain all
goods and services necessary for or beneficial to the accomplishment of
its authorized functions by procurement from private sources.
(b) Exceptions.--Subsection (a) does not apply to the following
goods and services required by an agency:
(1) Goods or services that are required by a law enacted
after the date of the enactment of this Act to be produced or
performed, respectively, by the agency.
(2) Any goods or services for which the head of the agency
determines and certifies to Congress in accordance with
regulations promulgated by the Director of the Office of
Management and Budget that--
(A) it is necessary in the interests of national
security that the Government produce, manufacture, or
provide the goods or services;
(B) the goods or services are so inherently
governmental in nature that it is in the public
interest to require production or performance,
respectively, by Government employees; or
(C) commercial practices are not sufficient to
satisfy unique requirements of the agency for the goods
or services.

SEC. 4. PROCUREMENTS FROM STATE AND LOCAL GOVERNMENTS.

In any case in which the head of an agency determines that goods or
services required by the agency are so inherently governmental in
nature that it is in the public interest to require production or
performance, respectively, by Government employees, the head of the
agency shall determine whether the requirements of the agency for such
goods or services can be satisfied by a State or local government and,
if so, shall attempt to procure the goods or services from that source.

SEC. 5. ADMINISTRATIVE PROVISIONS.

(a) Regulations.--
(1) In general.--The Director of the Office of Management
and Budget shall promulgate such regulations as the Director
considers necessary to carry out sections 3 and 4.
(2) Emphasis on procurement from private sources.--The
regulations shall emphasize the preference set forth in section
3 for procuring goods and services from private sources.
(b) Oversight.--The Director of the Office of Management and Budget
and the heads of agencies shall vigorously monitor the compliance of
agencies with the requirements of this Act and report to Congress any
significant failure of an agency to comply with any such requirement.

SEC. 6. STUDY AND REPORT.

(a) Study.--The Director of the Office of Management and Budget
shall carry out a study to identify all activities of agencies that are
inconsistent with the requirements of section 3.
(b) Report.--
(1) Requirement.--The Director shall transmit a report on
the study to Congress within one year after the date of
enactment of this Act.
(2) Content.--The report shall include a list of all
procurement activities identified by the study and a schedule
for the transfer of such activities to the private sector of
the economy. The schedule included in the report shall provide
for the completion of the transfer within five years after the
date on which such report is transmitted to Congress.
(c) Coordination With Comptroller General.--The Director--
(1) shall coordinate the study under subsection (a) and the
preparation and transmittal of the report under subsection (b)
with the Comptroller General of the United States; and
(2) in preparing the study, shall obtain representative
views of the private sector.

SEC. 7. DEFINITIONS.

(a) Agency.--As used in this Act, the term ''agency'' means--
(1) an executive department as defined by section 101 of
title 5, United States Code;
(2) a military department as defined by section 102 of such
title; and
(3) an independent establishment as defined by section
104(l) of such title.
(b) Inherently Governmental Services.--(1) For the purposes of
section 3(b)(2)(B), services constituting the performance of an
inherently governmental function shall be considered inherently
governmental services.
(2)(A) For the purposes of paragraph (1), a function shall be
considered an inherently governmental function if the function is so
intimately related to the public interest as to mandate performance by
Government employees. Such functions include activities that require
either the exercise of discretion in applying Government authority or
the making of value judgments in making decisions for the Government,
including judgments relating to monetary transactions and entitlements.
An inherently governmental function involves, among other things, the
interpretation and execution of the laws of the United States so as
to--
(i) bind the United States to take or not to take some
action by contract, policy, regulation, authorization, order,
or otherwise;
(ii) determine, protect, and advance its economic,
political, territorial, property, or other interests by
military or diplomatic action, civil or criminal judicial
proceedings, contract management, or otherwise;
(iii) significantly affect the life, liberty, or property
of private persons;
(iv) commission, appoint, direct, or control officers or
employees of the United States; or
(v) exert ultimate control over the acquisition, use, or
disposition of the property, real or personal, tangible or
intangible, of the United States, including the control or
disbursement of appropriated and other Federal funds.
(B) For the purposes of paragraph (1), inherently governmental
functions do not normally include--
(i) gathering information for or providing advice,
opinions, recommendations, or ideas to Government officials; or
(ii) any function that is primarily ministerial or internal
in nature (such as building security, mail operations,
operation of cafeterias, housekeeping, facilities operations
and maintenance, warehouse operations, motor vehicle fleet
management and operations, or other routine electrical or
mechanical services).
Freedom from Government Competition Act of 1996 - Requires Federal agencies to obtain all goods and services necessary for or beneficial to the accomplishment of their authorized functions by procurement from private sources, except as specified.
Provides for a study and report.