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 without compromising service quality or increasing fees. It requires agencies to solicit competitive sealed bids for contracts valued at $500,000 or more for local agencies and $1 million or more for non-local agencies, while also mandating detailed cost analyses and public oversight. Employee unions are granted the right to review cost estimates and propose alternatives, reinforcing the importance of transparency and accountability in the privatization process.

Additionally, the bill introduces compliance measures, including the submission of quarterly payroll records by contractors and penalties for noncompliance with wage and benefit standards. The Office of the State Comptroller is tasked with reviewing and certifying proposed contracts for compliance and cost savings before execution, while the State Auditor will conduct annual post-audits to verify that projected savings are achieved without sacrificing service quality or employee standards. The legislation also emphasizes adherence to antidiscrimination standards, prioritization of hiring qualified displaced agency 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 such contracts.