HB 779 -- Public Privatization Contracts

Sponsor:  Lowe

This bill creates the Public Service Accountability Act, which
requires most public bodies to analyze costs and benefits of
privatizing their services for any service valued at $25,000 or
more.  The public body must prepare a statement of services
proposed to be the subject of the privatization contract that
includes the specific quantity and standard of quality which will
be used to solicit sealed bids.  The bill contains requirements
for the bidding procedure.  A comprehensive written estimate of
the cost of a privatization contract and the cost of regular
public employees providing the services must be prepared.  A
contract can only be granted when the cost differential is more
than a 10% savings.  Minimum wages for the privatization contract
are established.  No contract may exceed two years in length.
Privatization contractors must offer employment positions to
qualified agency employees whose jobs are eliminated as a result
of the contract.  The bill outlines other considerations for the
awarding of a privatization contract.  The bill also places
certain restrictions on the hiring of a subcontractor and
guidelines for the contractor to follow during the length of the
privatization contract.  Remedies for violation of this law are
outlined in the bill.  Funds of a public body may not be used to
support or oppose unionization.

A privatization contract is defined as an agreement, or
combination or series of agreements, by which a nongovernmental
person or entity agrees with a public body to provide services
which are substantially similar to and in lieu of services which
have been provided, in whole or in part, by regular employees of
a public body.

The bill contains an emergency clause.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:13 am