An Act To Protect Taxpayers in the Privatization of State Services
Sec. 1. 5 MRSA §18, sub-§1, ¶D, as enacted by PL 1979, c. 734, §2, is amended to read:
Sec. 2. 5 MRSA §18-A, sub-§4, as enacted by PL 2001, c. 203, §2, is amended to read:
(1) When the private entity or party that proposes to contract with the State and that employs the executive employee, based upon all relevant facts, is the only reasonably available source to provide the service or product to the State, as determined by the director; or
(2) When the director determines that the amount of compensation to be paid to the private entity or party providing the service or product to the State is de minimis . ; or
Sec. 3. 5 MRSA c. 21 is enacted to read:
PRIVATIZATION OF AGENCY SERVICES
§ 481. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 482. Privatization contracts
A copy of the proposed privatization contract must accompany the certification transmitted to the Attorney General under this subsection.
§ 483. Review by Attorney General
This bill creates a process by which a state agency can enter a privatization contract with a nongovernmental entity to perform basic agency services for up to 5 years if a number of criteria are met, including:
1. Wages and benefits for employees of the contractor are comparable to state employees performing the same services;
2. The contractor endeavors to hire agency employees terminated due to the privatization;
3. The agency provides an estimate of its costs in providing the subject services in the most efficient manner;
4. The agency provides support and resources to allow agency employees to submit a competing bid to provide the privatized services;
5. The agency considers as a contract cost any income tax revenue lost to the State as a result of services to be performed out of state under the contract; and
6. The Attorney General performs a review to determine that all of the requirements of the bidding process and privatization contract have been met.