Bill Text: MI HB4704 | 2015-2016 | 98th Legislature | Introduced

---

Bill Title: State financing and management; purchasing; preprivatization cost-benefit analysis and process for public service workers to present alternative recommendations; provide for. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 280.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2015-06-10 - Printed Bill Filed 06/10/2015 [HB4704 Detail]

Download: Michigan-2015-HB4704-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4704

 

June 9, 2015, Introduced by Reps. Faris, Kivela, McBroom, Howrylak, Dianda and Lucido and referred to the Committee on Government Operations.

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

(MCL 18.1101 to 18.1594) by adding section 280.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 280. (1) Before seeking approval from the civil service

 

commission for privatizing any services that replace services

 

performed by state employees, a state 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 state agency. The analysis

 

shall include a detailed comparative estimate of the costs that

 

this 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 companies that have a

 

previous history or reputation for providing quality services and

 

that will provide services covered by performance bonds.

 

     (2) A state agency shall not proceed with privatization of

 

services under this section until it receives cost estimates and

 

recommendations for changes in work processes from the state

 

employees who are performing the services or their representatives

 

and gives full and fair consideration of the revised cost estimates

 

and recommendations for changes in work processes.

 

     (3) The state agency shall publish a copy of the detailed

 

preprivatization cost-benefit analysis on the state agency's

 

website.