HB 383 -- Privatization Contracts

Sponsor:  Green

This bill creates the Public Service Accountability Act, which
requires state agencies to analyze costs and benefits of
privatizing their services for any service valued at $500,000 or
more, other than legal or management consulting services.  If the
agency determines that it is cost effective to privatize a
service, it must prepare a statement of services that includes
standards of quality and quantity and an estimate of the costs of
regular agency employees providing the service, which will be
used to solicit sealed bids.  A contract can only be granted when
the cost differential is more than a 10% savings, and contracts
cannot exceed five years.  Contractors must offer positions to
agency employees whose jobs are eliminated as a result of the
contract when those employees satisfy the private contractor's
hiring criteria.  The agency, contractor, and any subcontractors
must abide by federal records law.  Contractors and
subcontractors may be prosecuted if they seek to avoid
compliance.  Contracts must be sent to the State Auditor for
review and returned within 30 days.  The Auditor's objection will
preclude implementation of the contract.  Proposed contractors
must supply information on their qualifications and disclose
their state-level political contributions for the past four years
and their record of legal complaints and workplace violations.
No state funds can be used to oppose or promote union activity
among the contractor's employees.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am