SB 854 Creates the "Public Service Accountability Act"
Sponsor: Green
LR Number: 3907S.01I Fiscal Note:
Committee: Small Business, Insurance & Industrial Relations
Last Action: 1/18/2006 - Second Read and Referred S Small Business, Insurance & Industrial Relations Committee Journal Page: S99
Title: Calendar Position:
Effective Date: August 28, 2006

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Current Bill Summary


SB 854 - This act creates the "Public Service Accountability Act", which requires most public bodies to analyze costs and benefits of privatizing their services for any service valued at $25,000 or more. The public body must prepare a statement of services proposed to be the subject of the privatization contract that includes the specific quantity and standard of quality which will be used to solicit sealed bids.

The act contains requirements for the bidding procedure. A comprehensive written estimate of the cost of a privatization contract and the cost of regular public employees providing the services must be prepared. A contract can only be granted when the cost differential is more than a 10% savings. Minimum wages for the privatization contract are established. No contract may exceed two years in length. Privatization contractors must offer employment positions to qualified agency employees whose jobs are eliminated as a result of the contract.

The act outlines other considerations for the awarding of a privatization contract. Certain restrictions are placed on the hiring of a subcontractor and creates guidelines for the contractor to follow during the length of the privatization contract. Remedies for violation of this law are outlined in the act. Funds of a public body may not be used to support or oppose unionization. A privatization contract is defined as an agreement, or combination or series of agreements, by which a non-governmental person or entity agrees with a public body to provide services which are substantially similar to and in lieu of services which have been provided, in whole or in part, by regular employees of a public body.

This act contains an emergency clause.

This act is identical to SB 150 (2005).

JIM ERTLE