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. The bill removes the requirement that such contracts must result in a reduction of at least one permanent, classified employee. Additionally, it increases the projected cost savings required from 10% to 20% when comparing the costs of privatization to those of classified State employees.

The bill also introduces several new provisions aimed at ensuring fair labor practices and accountability in privatization contracts. Agencies must provide a detailed written statement of the services to be contracted, including wage rates and insurance benefits for employees. Each bid must establish wage rates that meet or exceed the minimum wage for comparable State positions and include provisions for health, dental, and vision insurance. Furthermore, the bill mandates that the Auditor of Accounts review contracts before renewal to ensure compliance with cost-saving and performance measures. The act is set to take effect upon passage.

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