May 13, 2008, Introduced by Reps. Miller, Johnson, Donigan, Valentine, Hopgood, Constan, Polidori, Simpson, Condino and Cushingberry and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
(MCL 18.1101 to 18.1594) by adding sections 280, 280a, 280b, and
280c.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 280. (1) Before seeking approval for privatizing any
services that replace services performed by state employees, the
department or agency shall submit a detailed preprivatization cost-
benefit analysis to the appropriations committees of the senate and
house of representatives. The analysis shall be prepared utilizing
accurate, reliable, and objective data and shall use the soundest
actuarial techniques that are available to the department or
agency. The analysis shall include a detailed comparative estimate
of the costs that the state would incur for the period of the
proposed contract under the following circumstances:
(a) If state employees were to continue to provide the
services.
(b) If a private contractor were to provide the services. The
cost analysis of privatizing the services shall include all of the
following costs:
(i) All necessary monitoring and oversight of the private
entity by the state.
(ii) Up-to-date cost estimates for using reputable companies
that have a previous history or reputation for providing quality
services and that will provide services covered by performance
bonds.
(2) A department or agency shall not proceed with
privatization of services under this section until it receives
notice of approval from the senate and house appropriations
committees indicating a cost savings of at least 10% of the cost of
using state employees to provide the services.
(3) A department or agency shall follow the procedure set
forth in subsections (1) and (2) for any expansion of a
privatization contract that would further replace services
performed by state employees.
Sec. 280a. Before renewing or rebidding a contract for
privatized services that replaced services provided by state
employees, the department shall conduct an analysis to determine
whether the contract actually provided the required quality of
services and produced the savings that were projected in the
preprivatization analysis. If the analysis indicates that the
privatization did not produce the savings or provided services that
did not meet required standards of performance, the department or
agency shall reassume the responsibility of providing the services
through state employees.
Sec. 280b. If the department of civil service approves the
contracting for services to replace services performed by state
employees, the contract for procuring those services shall include
a requirement that the contractor make its records concerning the
performance of the contract available for inspection or copying on
request of the department and that those records shall be
considered records of the department for purposes of disclosure
upon a request made under the freedom of information act, 1976 PA
442, MCL 15.231 to 15.246. The contractor shall include in any
subcontract in relation to the contract that the subcontractor has
a similar obligation to disclose records concerning performance of
the duties required under the subcontract. The contractor and any
subcontractor shall retain records concerning the performance of
the contract for at least 3 years after the completion of the
contract.
Sec. 280c. A private contractor with a contract with this
state that expends state or federal tax dollars shall have all
records concerning state contracts be subject to a full and
comprehensive audit upon the request of any member of the senate or
house appropriations committee.