SB 0717 Regulates contracts for services formerly delivered by public bodies
LR Number:2753S.01I Fiscal Note:2753-01
Committee:Financial and Governmental Organization
Last Action:02/11/02 - Hearing Conducted S Financial & Governmental Org., Journal page:
Veterans Affairs & Elections Committee
Effective Date:July 1, 2003
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Current Bill Summary

SB 717 - This act creates the "Public Service Accountability Act" which regulates contracts between public bodies and private contractors.

State entities entering into private contracts for services over $25,000 are required to follow these provisions. Local participating political subdivisions choose to follow these provisions regulating contracts between private and political subdivisions. Both state entities and participating political subdivisions are included in the definition of public body.

The public body will prepare a written statement specifically describing the services to be provided under a privatization contract. The state entity will file it with the Secretary of State no later than sixty business days before the bids are due and the statement will be published in the Missouri Register or the participating political subdivision will file it with the clerk of the county where the political subdivision is located and be published in a newspaper of general circulation no later than thirty business days prior to when bids are due.

Every bid received from a private entity must include the following: (1) Without disclosing employees' names, employee job history with the private entity will be provided; (2) Annual rate of staff turnover; (3) Hours of training planned for employees who would provide public services; and (4) Any legal complaints issued by an enforcement agency for alleged violations of federal, state or local rules, regulations or laws.

Compensation for employees pursuant to a privatization contract will be the greater of the wage rate paid at step one of the grade or classification of a public employee with similar duties, plus the cash value of health and other benefits or the average private sector rate plus health and other benefits.

The public body that is considering entering into a privatization contract will prepare an estimate of the costs for public employees to provide the services. Before the due date to receive sealed bids, any public employee organization may propose amendments to any relevant collective bargaining agreement. If the amendments reduce costs below the public body's comprehensive written estimate it will be the lowest and best bid. Such amendments will only become effective if they reduce the cost estimate below the contract cost. The estimate will be confidential until after the due date for sealed bids and then the estimate will become a public record.

Upon making a decision, the public body will publicly designate the bidder that won the contract. The public body must certify compliance with these sections and that the contract costs will be ten percent less than the estimated cost for the services to be completed by public employees. Any privatization contract will be subject to Chapter 610, RSMo, which pertains to Missouri public records law.

The contractor may not award a subcontract without approval of the head of the public body. Each subcontractor contract will be subject to Chapter 610, RSMo.

Public body may seek contractual remedies for violation of the privatization contract.

Various limitations exist on the contractor or subcontractor regarding ownership rights. The public body and contractor or subcontractor will be jointly and severally liable to comply with Chapter 610, RSMo.

In addition to the remedies provided in Chapter 610, RSMo, the following remedies are also available, damages, restitution, civil penalty of not more than fifty thousand dollars ($50,000). Legal action that may be brought pertaining to public records under this act must be brought within three years after the occurrence of such violation.

This act prevents persons from retaliating against any employee who discloses information in good faith about the services provided by the private contractor.

Private contractors must provide notice of the contract to provide public services at the worksite.

This act will apply to all privatization contracts entered into on or after July 1, 2003.

This act is similar to HB 530 (2001) and SCS/SB 513 (2001).