This bill establishes new procedures and standards for the privatization of public service contracts in New Jersey, ensuring that such contracts are only pursued when they yield significant cost savings while maintaining service quality and not increasing public charges. Agencies intending to privatize services valued at $500,000 or more (or $1 million for non-local agencies) are required to solicit competitive sealed bids based on detailed service requirements. The bill mandates that contractors demonstrate their capability to meet or exceed current service standards, including maintaining comparable wages and benefits for employees. Additionally, it requires agencies to allow employee unions to review cost estimates and propose alternatives prior to the solicitation of bids.

The legislation also introduces stringent oversight measures, necessitating that the Office of the State Comptroller review and certify compliance with the bill's provisions before finalizing any contract. Annual post-audits by the State Auditor will evaluate the actual costs and savings of privatized contracts, with findings made public to ensure accountability. The bill outlines penalties for noncompliance, including potential debarment and financial repercussions for misrepresentation or failure to uphold wage and benefit obligations. It also emphasizes adherence to antidiscrimination standards, prioritization of qualified displaced employees, and the inclusion of training plans for those employees. Importantly, the bill's requirements do not apply to contracts entered into before its effective date, but do apply to renewals or extensions of contracts initiated thereafter.