States
have adopted several different strategies to deal with water
privatization contracts. Listed below are state bills that
have been introduced, organized by type of bill.
Bills Requiring Referendum Approval
Louisiana
Signed into law on 6/27/03, Act
768 requires the Public Sewerage and Water Board to
seek voter approval of any contracts or agreements valued
at more than $5 million relating to the ownership, operation,
or maintenance of any sewerage and water board sewage or
water disposal or treatment facility in any municipality
having a population in excess of 475,000.
HB
1726 included provisions that would have required referendum
approval of privatization contracts of any Sewerage and
Water Board management or administrative function, drainage,
sewer, or water operation, exceeding $5,000,000. These provisions
were removed from the adopted version; Act 1126, passed
on 7/2/03, only repeals provisions affecting certain construction
contracts of the Sewerage and Water Board of New Orleans.
Public Services Accountability / Contract Regulation Bills
Arizona
Introduced 1/24/04, HB
2453 requires that privatization contracts meet certain
requirements, notification and comment from agency employees;
sets up a review and auditing process; limits contracts
to 5 years.
Status: Read a second time, 2/2/04.
Georgia
HB
1326, introduced 2/3/04, requires notification of plans
to privatize and specifies provisions for state employees
to be offered employment under the new contract or be eligible
for assistance by the private entity. The bill also provides
for the invalidity of contracts entered into without compliance.
Status: From Senate Committee on State Institutions and
Property, favorably reported, 3/25/04.
Hawaii
SB
767 provides for the regulation of privatization contracts,
including providing for a review of contract costs, monitoring
and enforcement of privatization services, and public access
to information. The bill requires annual reports to include
an evaluation of the efficiency and effectiveness of services
provided.
Status: Carried over to 2004 Regular Session, 8/21/03.
Illinois
SB
73 provides that a privatization contract means certain
contracts that result in the reduction in force of at least
one permanent, classified employee. The bill also removes
provisions requiring state agencies to solicit competitive
sealed bids for privatization contracts based upon a written
statement of the services to be provided under the contract.
Status: Re-referred to Rules Committee, 6/1/03.
Minnesota
HF
323 / SF 386 relate to public employment; establish
procedures and standards for contracting with private entities
for the provision of services that have been, or otherwise
would be, provided by public employees; provide for public
accountability, background check, and 2-year contract limits.
Status: HF 323 - To House Committee on Governmental Operations
and Veterans Affairs Policy, 2/6/03; SF 386 - To Senate
Committee on State and Local Government Operations, 2/17/03.
Missouri
HB
354 regulates the use of privatization contracts by
the state and participating political subdivisions. The
bill limits privatization contracts to two years and requires
a public body to consider a contractor’s past performance
and record of compliance with applicable laws before awarding
the contract. It also requires any public body entering
into a privatization contract to certify in writing that
the quality of services satisfies quality requirements,
the cost is at least 10% less than if the public body had
completed the services, and the privatization contract is
in the public interest.
Status: To House Committee on Workforce Development and
Workplace Safety, 3/6/03.
HB
779 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. regulates the use of privatization
contracts by the state and participating political subdivisions.
The bill limits privatization contracts to two years and
requires a public body to consider a contractor’s past performance
and record of compliance with applicable laws before awarding
the contract. It also requires any public body entering
into to a privatization contract to certify in writing that
the quality of services satisfies quality requirements,
the cost is at least 10% less than if the public body had
completed the services, and the privatization contract is
in the public interest.
Status: To House Committee on Communications, Energy, and
Technology, 1/26/04.
New Jersey
Introduced 1/13/04, S
390 requires review of certain state privatization contracts.
The bill establishes guidelines for public notification,
employee notification and provisions, and for certain service
requirements, including: establishment of public interest
benefits and cost savings; no rate increases to the public;
public employee opportunity for employment; background check
of private entity; and, contract term not longer than three
years. The bill requires this procedure for all contracts
of a total value of $100,000 or more.
Status: To Senate committee on State Government, 1/13/04.
S
983 / A 318 require the same as above, but for all state
contracts of a total value of $250,000 or more.
Status: S 983 – Introduced in the Senate, Referred to Senate
State Government Committee, 2/9/04; A 318 – Introduced,
Referred to Assembly Labor Committee, 1/13/04.
A
320 requires the same as above, but for all county contracts
of a total value of $250,000 or more.
Status: Introduced, Referred to Assembly Labor Committee,
1/13/04.
S
744 requires state agencies to submit notice of request
for proposals or other documents pertinent to privatization
contracts to certain state employees.
Status: Introduced in the Senate, Referred to Senate State
Government Committee, 2/5/04.
Ohio
Introduced 12/30/03, HB
363 requires review of certain state privatization contracts.
The bill establishes guidelines for public notification,
employee notification and provisions, and for certain service
requirements, including: establishment of public interest
benefits and cost savings; public employee opportunity for
employment; background check of private entity; annual review;
and, contract term not longer than two years.
Status: To House Committee on Financial Institutions, 1/6/04.
Oklahoma
Signed into law 6/24/03, HB
1115 requires contracts to contain certain provisions
regarding available employee positions pursuant to the contract
to qualified regular employees whose employment is terminated
because of the privatization contract. The bill also requires
any agency to perform a cost/benefit analysis and provide
a copy of the analysis report to the Department of Central
Services before the agency contracts to privatize a function,
program, service, unit, or division.
Pennsylvania
HB
1670, introduced 6/20/03, establishes the Privatization
Review Board in the Treasury Department and provides for
its powers and duties; provides for the Commission on Privatization
and for former state employees; and, limits contracts to
five years.
Status: To House Committee on State Government, 6/23/03.
HB
1671 (6/20/03) provides for privatization contracts
with political subdivision agencies; establishes privatization
review boards in all political subdivisions and provides
for their powers and duties; and, provides for agency employees,
annual review, wages, insurance.
Status: To House Committee on State Government, 6/23/03.
Rhode Island
H
5774 seeks to regulate privatization contracts and protect
workers who report conditions and practices which impact
on the efficiency and quality of public services provided
by private contractors.
Status: To House Committee on Labor, 2/11/03.
H
5891 (2/12/03) establishes a comprehensive process to
be followed to ensure a cost savings before state agencies
can privatize work currently performed by state employees;
specifies 5-year contract limits; and, requires fiscal accountability
and government oversight.
Status: Passed House; To Senate, 7/2/03.
S
2294 / H 7227 establish the Government Oversight and
Fiscal Accountability Review Act to provide for performance
audits and fiscal accountability of privatization contracts.
Status: S 2294 – To Governor, 7/1/04; H 7227 – Continued,
5/27/04. |
