HB 506 -- Oversight of Public Privatization Contracts

Sponsor:  Lowe (44)

This bill establishes the Public Service Accountability Act,
which requires most public bodies to analyze costs and benefits
of privatizing 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, and
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 specifies other considerations for the awarding of a
privatization contract.  Certain restrictions are placed on the
hiring of a subcontractor and the guidelines for the contractor
to follow during the length of the privatization contract.
Remedies for violation of this law are specified 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 a
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
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm