Relating to outsourcing a service performed by a state agency to a private commercial contractor.
Impact
The bill specifically applies to contracts that would lead to the loss of 100 or more employee positions or have a value of $10 million or more. This regulatory framework establishes that state agencies cannot proceed with outsourcing without a determination from a governing council that the service could be better provided through competition. Additionally, the bill stipulates that audits must be conducted to assess the performance of the private contractors, focusing on their compliance with the contracts and whether they deliver comparable services at the promised cost savings. This ensures a level of accountability for contractors who are selected to provide these services.
Summary
House Bill 581 addresses the outsourcing of services performed by state agencies to private commercial contractors. The bill introduces provisions under Section 2162 of the Government Code, mandating that cost-benefit analyses be conducted when considering the outsourcing of certain services. These analyses would weigh the costs and benefits of utilizing a private contractor against the performance of the state agency, including factors like supervision costs and potential efficiency improvements. The aim is to ensure that if services are outsourced, it is done transparently and with informed decision-making.
Contention
Notably, there may be concerns regarding the implications of this bill on state employment. Critics of outsourcing frequently highlight risks associated with reduced job security for state employees and potential declines in service quality if cost-cutting measures are prioritized over effective service delivery. Proponents might argue that outsourcing can lead to efficiency gains and cost savings for the state budget, but the risk of job losses adds a significant point of contention. The bill sets strict criteria for when outsourcing can occur, reflecting a cautious approach to privatization that balances fiscal responsibility with workforce considerations.
Relating to the nonsubstantive revision of the health and human services laws governing the Health and Human Services Commission, Medicaid, and other social services.
Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.
Relating to requiring state contractors, political subdivisions of this state, and private employers to participate in the federal electronic verification of employment authorization program, or E-verify.
Relating to requiring state contractors, political subdivisions of this state, and private employers to participate in the federal electronic verification of employment authorization program, or E-verify.