June 19, 2008, Introduced by Reps. Bennett, Polidori, Donigan, Espinoza, Constan, Johnson, Hopgood, Condino, Valentine, Miller and Simpson and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
(MCL 380.1 to 380.1852) by adding section 1245.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1245. (1) Before privatizing any services that replace
services performed by school employees, the board of a school
district or intermediate school board of an intermediate school
district shall prepare and make available to the public a detailed
preprivatization cost-benefit analysis. The analysis shall be
prepared utilizing accurate, reliable, and objective data and shall
use the soundest actuarial techniques that are available to the
school district or intermediate school district. The analysis shall
include a detailed comparative estimate of the costs that the
school district or intermediate school district would incur for the
period of the proposed contract under the following circumstances:
(a) If school 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 school district or intermediate school district.
(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 school district or intermediate school district shall
not proceed with privatization of services under this section
unless the preprivatization analysis under subsection (1) indicates
a cost savings of at least 10% of the cost of using school
employees to provide the services.
(3) A school district or intermediate school district 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 school employees.
(4) Before renewing or rebidding a contract for privatized
services that replaced services provided by school employees, the
school district or intermediate school district 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 school district or intermediate school district
shall reassume the responsibility of providing the services through
school employees.
(5) If a board or intermediate school board contracts for
services to replace services performed by school 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
board or intermediate school board and that those records shall be
considered records of the district or intermediate school district
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 the same 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.