MI HB4271

State agencies must submit a detailed preprivatization cost-benefit analysis to the senate and house appropriations committees before seeking civil service commission approval to privatize any services currently performed by state employees.

The cost-benefit analysis must compare the costs of continuing services with state employees versus contracting with private providers, using accurate, reliable, and objective data with sound actuarial techniques.

The privatization cost analysis must include all monitoring and oversight costs for the private entity and cost estimates for contractors with a history of quality service and performance bonds.

State employees or their representatives must be given the opportunity to submit cost estimates and recommendations for work process changes, which the agency must give full and fair consideration before proceeding with privatization.

State agencies must publish the detailed preprivatization cost-benefit analysis on their website.