MI HB4151

State agencies must submit a detailed preprivatization cost-benefit analysis to the appropriations committees of both houses before seeking civil service commission approval to privatize state employee services.

The cost-benefit analysis must compare costs under two scenarios: continuing services with state employees and contracting services to a private provider, using accurate data and sound actuarial techniques.

Private contractor cost estimates must include all monitoring and oversight expenses by the state, and must use companies with a history of quality service that provide performance bonds.

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

The state agency must publish the detailed preprivatization cost-benefit analysis on its website.