SB 958 Establishes the "Public Service Accountability Act"
Sponsor: Kennedy
LR Number: 3933S.01I Fiscal Note:
Committee: Commerce, Energy and the Environment
Last Action: 1/30/2006 - Second Read and Referred S Commerce, Energy and the Environment Committee Journal Page: S142
Title: Calendar Position:
Effective Date: August 28, 2006

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Current Bill Summary


SB 958 - This act establishes the "Public Service Accountability Act."

Each state agency must prepare a cost-benefit analysis if it desires to privatize a service offered by the agency, if the service is valued at $100,000 or more. The provisions of the act do not apply to legal or management consulting services, as well as contracts entered into by the Missouri highways and transportation commission for the construction and repair of highways, bridges, ports, public transportation facilities and waterways.

If the agency determines that it is more cost-effective to privatize a service, the agency is required to prepare a written statement about the services to be privatized, including an estimate of the costs of regular state employees providing such service. After such a statement is created, the agency may then solicit competitive sealed bids for the privatization contracts.

In order for the agency to seek a privatization contract, the act requires that the savings must exceed 10% of the cost of delivering the same services with state employees. A privatization contract cannot exceed five years. If an agency accepts such a contract, the contractor must offer available positions to qualified state employees who are terminated because of the contract. All private entities entering into a privatization contract must comply with obligations imposed by the federal Freedom of Information Act with regard to any public record. The state auditor is required to review the proposed contract and either approve or object to the contract within 30 days. An agency cannot enter into such contract if the auditor objects. Each proposed contract shall include information on any political contributions made by the contractor or any management employee of the contractor to any elected officer of the state or the general assembly in the past four years. No state funds can be used to support or oppose union activity of the employees of the contractor that executes a privatization contract.

This act is similar to HB 383 (2003).

JIM ERTLE