2013 House Bill 4707

Revise privatization procedural detail

Introduced in the House

May 9, 2013

Introduced by Rep. Greg MacMaster (R-105)

To require that if a state agency solicits bids from contractors to privatize services that are currently provided by state employees, it must disclose the current actual costs of providing the service, including all labor costs, retirement and other obligations, and associated administrative costs.

Referred to the Committee on Oversight

June 18, 2013

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

June 20, 2013

Substitute offered

To adopt a version of the bill that would not tip off potential bidders regarding the least they would have to bid to beat the state's current costs of providing the service.

The substitute passed by voice vote

Amendment offered by Rep. Jim Townsend (D-26)

To prohibit the privatization of government services unless the savings to the state would be at least 10 percent of the cost of the same service being performed by government workers, and require any state department or agency seeking to privatize any state services to conduct a pre-privatization cost-benefit analysis.

The amendment failed by voice vote

Passed in the House 58 to 51 (details)

To require that if a state agency solicits bids from contractors to privatize services that are currently provided by state employees, it must disclose to potential bidders all "applicable formulas" that will be used to compare the bids to the state's current actual costs, but would not be required to divulge the state's actual costs. Until the contract is awarded the cost information would also be exempt from disclosure under the Freedom of Information Act.

Received in the Senate

July 31, 2013

Referred to the Committee on Appropriations