VT H0359

Expands the definition of "privatization contract" to include contracts that replace duties of vacant state government positions, in addition to contracts that replace services currently provided by classified state employees

Requires agencies to prepare written statements specifying proposed privatized services, including prevailing wage rates (not less than average step of comparable state employee grade) that must be publicly posted and shared with collective bargaining representatives

Mandates privatization contracts include provisions for health/dental/vision insurance substantially similar to state employee coverage, quarterly payroll reporting, just cause employment protection, nondiscrimination policies, and whistleblower protections

Prohibits contract renewal if the Auditor of Accounts finds the contract failed to achieve the required 10% cost savings or meet performance measures, changing from discretionary review to mandatory non-renewal

Directs the Agency of Administration to assess and report by February 1, 2026 on the fiscal impacts of including grants in the privatization definition, increasing required cost savings from 10% to 20%, and removing certain certification exceptions