Bill S.62 proposes amendments to the requirements for the Executive Branch of Vermont to enter into privatization contracts. The definition of a "privatization contract" is expanded to include contracts or grants for services valued at $25,000 or more per year, which are similar to services previously provided by permanent, classified State employees. Notably, the bill removes the requirement that such contracts must result in a reduction of at least one permanent, classified employee or the elimination of a vacant position. Additionally, the bill increases the projected cost savings requirement from 10% to 20% when comparing the costs of privatized services to those provided by classified State employees.

The bill also introduces several new provisions aimed at ensuring fair labor practices and accountability in privatization contracts. It mandates that every bid for a privatization contract must include specific wage rates and health insurance provisions for employees, as well as certifications from the agency and the Secretary of Administration regarding compliance with applicable laws and quality standards. Furthermore, the Auditor of Accounts is tasked with reviewing contracts before renewal to ensure they meet the new cost-savings and performance measures. The act is set to take effect upon passage.

Statutes affected:
As Introduced: 3-341, 3-343