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 modifies the certification process by the Office of the Attorney General, removing references to the "spirit and intent" of the classification plan and merit system, and introduces new requirements for agencies to provide detailed written statements regarding the services proposed for privatization, including wage rates and insurance coverage for employees.

The bill also establishes stricter standards for privatization contracts, including provisions for wage rates, insurance coverage, and compliance with performance measures. It mandates that the Auditor of Accounts review contracts before renewal to ensure they meet cost-savings and performance criteria. Furthermore, 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 the inclusion of grants in the definition of privatization contracts. The bill emphasizes that privatization contracts should not be required when there are no permanent, classified State employee positions available to perform the equivalent services. 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