January 12, 2017, Introduced by Rep. Faris and referred to the Committee on Appropriations.
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 must submit a detailed
preprivatization cost-benefit analysis to the appropriations
committees of the senate and house of representatives. The analysis
must be prepared utilizing accurate, reliable, and objective data
and must use the soundest actuarial techniques that are available
to the state agency. The analysis must 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 must 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.