Vermont 2025-2026 Regular Session

Vermont Senate Bill S0062 Compare Versions

Only one version of the bill is available at this time.

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1	1	BILL AS INTRODUCED S.62
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5	5	VT LEG #379382 v.1
6	6	S.62 1
7	7	Introduced by Senators Vyhovsky, Clarkson, Gulick, Harrison, Lyons, 2
8	8	Perchlik, Watson and White 3
9	9	Referred to Committee on 4
10	10	Date: 5
11	11	Subject: Executive; contracts; privatization contracts 6
12	12	Statement of purpose of bill as introduced: This bill proposes to amend the 7
13	13	requirements for the Executive Branch to enter into privatization contracts. 8
14	14	An act relating to privatization contracts 9
15	15	It is hereby enacted by the General Assembly of the State of Vermont: 10
16	16	Sec. 1. 3 V.S.A. § 341 is amended to read: 11
17	17	§ 341. DEFINITIONS 12
18	18	As used in this chapter: 13
19	19	* * * 14
20	20	(3) “Privatization contract” means a contract or grant for services valued 15
21	21	at $25,000.00 or more per year, which is the same or substantially similar to 16
22	22	and in lieu of services previously provided, in whole or in part, by permanent, 17
23	23	classified State employees, and which results in a reduction in force of at least 18
24	24	one permanent, classified employee, or the elimination of a vacant position of 19
25	25	an employee covered by a collective bargaining agreement. 20 BILL AS INTRODUCED S.62
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31	31	Sec. 2. 3 V.S.A. § 343 is amended to read: 2
32	32	§ 343. PRIVATIZATION CONTRACTS; PROCEDURE 3
33	33	(a) An agency shall not enter into a privatization contract, unless all of the 4
34	34	following are satisfied: 5
35	35	(1)(A) Thirty-five days prior to the beginning of any open bidding 6
36	36	process, the agency provides written notice to the collective bargaining 7
37	37	representative of the intent to seek to enter a privatization contract. During 8
38	38	those 35 days, the collective bargaining representative shall have the 9
39	39	opportunity to discuss alternatives to contracting. Such alternatives may 10
40	40	include amendments to the contract if mutually agreed upon by the parties. 11
41	41	Notices regarding the bid opportunity may not be issued during the 35-day 12
42	42	discussion period. The continuation of discussions beyond the end of the 35-13
43	43	day period shall not delay the issuance of notices. 14
44	44	(B) The agency shall prepare a specific written statement of the 15
45	45	services proposed to be the subject of the privatization contract, including the 16
46	46	specific quantity and standard or quality of the subject services. For each 17
47	47	position in which a bidder will employ any person pursuant to a privatization 18
48	48	contract and for which the duties are substantially similar to the duties 19
49	49	performed by a permanent, classified State employee, the statement shall also 20
50	50	include the minimum wage rate to be paid for each position, which shall not be 21 BILL AS INTRODUCED S.62
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55	55	less than the average step of the grade under which the comparable State 1
56	56	employee position is paid. This statement shall be subject to 1 V.S.A. chapter 2
57	57	5, subchapter 3 (Public Records Act). 3
58	58	(2) The proposed contract is projected to result in overall cost savings to 4
59	59	the State of at least 10 20 percent above the projected cost of having the 5
60	60	services provided by classified State employees. 6
61	61	* * * 7
62	62	(4) Every bid for a privatization contract shall include provisions 8
63	63	specifically establishing the wage rate for each position, which shall not be less 9
64	64	than the minimum wage rate contained in the statement described in 10
65	65	subdivision (1)(B) of this subsection. Every bid shall also include provisions 11
66	66	for the contractor to include in the contract the costs of health, dental, and 12
67	67	vision insurance plans for every employee employed pursuant to the contract at 13
68	68	least equal to the percentage paid by the State for State employees. The health 14
69	69	insurance plan described in the bid shall provide coverage to the employee and 15
70	70	the employee’s spouse and dependent children, if any. 16
71	71	(5) The agency and the Secretary of Administration shall each certify in 17
72	72	writing that: 18
73	73	(A) they have complied with all provisions of this section and with 19
74	74	all other applicable laws; 20 BILL AS INTRODUCED S.62
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79	79	(B) the quality of the services to be provided by the designated bidder 1
80	80	is likely to satisfy the quality requirements of the statement prepared pursuant 2
81	81	to subdivision (1) of this subsection (a); 3
82	82	(C) the designated bidder and its supervisory employee, while in the 4
83	83	employ of the designated bidder, have no record of substantial or repeated 5
84	84	willful noncompliance with any relevant federal or State regulatory statute, 6
85	85	including statutes concerning labor relations, occupational safety and health, 7
86	86	nondiscrimination and affirmative action, environmental protection, and 8
87	87	conflicts of interest; and 9
88	88	(D) the proposed privatization contract is in the public interest in that 10
89	89	it meets the applicable quality and fiscal standards set forth in this section. 11
90	90	(b) Each privatization contract shall include the following terms and 12
91	91	conditions: 13
92	92	(1) Provisions specifically establishing the wage rate for each position, 14
93	93	which shall not be less than the minimum wage rate contained in the statement 15
94	94	described in subdivision (a)(1) of this section. 16
95	95	(2) Provisions for the contractor to include in the contract the costs of 17
96	96	health, dental, and vision insurance plans for every employee employed 18
97	97	pursuant to the contract equal to the percentage paid by the State for State 19
98	98	employees. The health insurance plan shall provide coverage to the employee 20
99	99	and the employee’s spouse and dependent children, if any. Each contractor 21 BILL AS INTRODUCED S.62
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104	104	shall submit quarterly payroll records to the agency, which list the name, 1
105	105	address, hours worked, and the hourly wage paid for each employee in the 2
106	106	previous quarter. 3
107	107	(3) A provision that the agency shall not amend any privatization 4
108	108	contract if the amendment has the purpose or effect of voiding any requitement 5
109	109	of this section. 6
110	110	(4) A provision requiring the contractor to comply with a policy of 7
111	111	nondiscrimination and equal opportunity for all persons and to take affirmative 8
112	112	steps to provide such equal opportunity for all persons. 9
113	113	(5) A provision granting all employees employed under this contract just 10
114	114	cause employment protection. 11
115	115	(6) A provision requiring the contractor to comply with a policy of 12
116	116	whistleblower protection equal to those defined in sections 971–978 of this 13
117	117	title. 14
118	118	(c) Not more than 10 days after the 35-day period of review described in 15
119	119	subdivision (a)(1)(A) of this section, and subsequent to the certification 16
120	120	described in subdivision (a)(5) of this section, a panel to be composed of the 17
121	121	Commissioner of Labor or designee, the Auditor of Accounts or designee, and 18
122	122	the president of the collective bargaining agent or designee shall issue a 19
123	123	decision on the compliance of the proposed privatization contract with the 20
124	124	terms of this title. If the proposed privatization contract does not comply with 21 BILL AS INTRODUCED S.62
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129	129	the requirements of this title, the contract shall be considered void ab initio, 1
130	130	and the Attorney General, a State’s Attorney, or the collective bargaining 2
131	131	representative may bring a civil action in the Superior Court of Washington 3
132	132	County to enjoin enforcement of the contract. 4
133	133	(d) The Attorney General is authorized, upon request, to investigate 5
134	134	whether the contract has met the prospective savings of 20 percent at any time 6
135	135	following the first 12 months of the contract; if not, the contract shall not be 7
136	136	renewed and the services shall be thereafter provided by classified State 8
137	137	employees. 9
138	138	(b)(e)(1) A privatization contract shall contain specific performance 10
139	139	measures regarding quantity, quality, and results and guarantees regarding the 11
140	140	services performed. 12
141	141	(2) The agency shall provide information in the State’s Workforce 13
142	142	Report on the contractor’s compliance with the specific performance measures 14
143	143	set out in the contract. 15
144	144	(3) The agency may not renew the contract if the contractor fails to 16
145	145	comply with the specific performance measures set out in the contract as 17
146	146	required by subdivision (1) of this subsection. 18
147	147	(c)(f)(1) Before an agency may renew a privatization contract for the first 19
148	148	time, the Auditor of Accounts shall review the privatization contract analyzing 20
149	149	whether it is achieving: 21 BILL AS INTRODUCED S.62
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154	154	(A) the 10 20 percent cost-savings requirement set forth in 1
155	155	subdivision (a)(2) of this section; and 2
156	156	(B) the performance measures incorporated into the contract as 3
157	157	required under subdivision (b)(e)(1) of this section. 4
158	158	(2) If the Auditor of Accounts finds that a privatization contract has not 5
159	159	achieved the cost savings required under subdivision (a)(2) of this section or 6
160	160	complied with performance measures required under subdivision (b)(e)(1) of 7
161	161	this section, the Auditor of Accounts shall file a report with the agency and the 8
162	162	House Committee on Government Operations and Military Affairs and Senate 9
163	163	Committees Committee on Government Operations, and the agency shall 10
164	164	review whether to renew the privatization contract or perform the work with 11
165	165	State employees. 12
166	166	Sec. 3. EFFECTIVE DATE 13
167	167	This act shall take effect on passage. 14