Bill H.359, introduced by Representative Hooper, seeks to amend the requirements for the Executive Branch to enter into privatization contracts. The bill redefines a "privatization contract" to include contracts for services valued at $25,000 or more per year that either replace services currently provided by permanent, classified State employees or substantially replace the duties of a vacant position in State government. Additionally, it introduces new requirements for agencies, including a 35-day notice period for collective bargaining representatives before bidding, a detailed written statement of the proposed services, and specific wage and insurance provisions for employees under the contract.

The bill also mandates that every bid for a privatization contract must include wage rates and insurance coverage details, and it requires the Agency and Secretary of Administration to certify compliance with various standards before a contract can be awarded. Furthermore, it establishes that the Auditor of Accounts must review contracts before renewal to ensure they meet cost-savings and performance measures. The Agency of Administration is tasked with assessing the fiscal and operational impacts of proposed changes to privatization contracts, including potential increases in required cost savings and modifications to the definition of such contracts. The act is set to take effect upon passage, with specific provisions becoming effective on July 1, 2026.

Statutes affected:
As Introduced: 3-341, 3-342, 3-343