Bill Summary: H976 - Enhance Oversight of Service Contracts

• Creates a business case justification template for state agencies to document rationale for selecting service providers, including current service delivery methods, costs, performance metrics, security requirements, and transition plans.

• Requires state agencies to obtain written approval from the State Purchasing Officer (for contracts up to $5 million) or both the State Purchasing Officer and Office of State Budget and Management (for contracts exceeding $5 million) before selecting any service provider, whether public or private.

• Mandates consultation with the Joint Legislative Commission on Governmental Operations regarding service contract selections, with a 15-day deemed approval period if no meeting is held.

• Establishes a contract management system operated by the State Purchasing Officer to track payments, store contract documents, generate reports, and ensure compliance with contract terms for all state agency service contracts.

• Requires the Office of State Budget and Management to develop a plan by December 1, 2016, examining which state agency services could be provided more effectively and cost-efficiently by private providers, with annual reporting to the legislature.