HB 332 (BR 1311) - G. Graham, Ro. Adams, J. Barrows, L. Clark, J. Coleman, C. Hoffman, M. Long
AN ACT relating to the contracting out of government services.
Create various new sections of KRS 45A to define terms; permit a state agency to enter into a privatization contract; establish procedures for a state agency to follow before requesting approval from the Finance and Administration Cabinet to enter into a privatization contract; require approval from the Finance and Administration Cabinet before state agency proceeds with contracting out a service under the provisions of KRS Chapter 45A; direct the Commonwealth to retain responsibility for ensuring the quality and reliability of the service; direct that a private vendor who enters into a privatization contract with a state agency is a public agency for purposes of KRS 61.870 to 61.884, relating to open records; direct that any records prepared, owned, used, in the possession of, or retained by the vendor relating to the service provided under the privatization contract be public records; direct that a private vendor's records that are not related to services provided under the privatization contract are not public records; direct that all records prepared, owned, used, in the possession of, or retained by a state agency in conjunction with the approval, evaluation, or enforcement of a privatization contract shall be public records; require the Finance and Administration Cabinet to develop, by administrative regulations, a process for evaluating the information submitted by a requesting state agency for use in determining whether to approve privatization of a government service; require the contracting state agency to annually evaluate the performance of an awarded privatization contract and report its findings to the Governor, the Auditor of Public Accounts, and the Legislative Research Commission; require the Auditor to review the evaluation of the performance of any privatization contract awarded in the amount of $250,000 or more annually; require the review to include but not be limited to determining whether the contractor is complying with all applicable statutory requirements and the provisions of the contract; direct that the cost of the Auditor's review be charged to the contractor; require the Auditor to report the findings of his review to the Governor, the Finance and Administration Cabinet, the contracting agency, the contractor, and the Legislative Research Commission; give the contractor 90 days to correct the noncompliance; direct termination of the contract unless the noncompliance is corrected within the 90 days; amend KRS 11A.130 to permit officers and public servants who were not involved in making the decision to privatize or in developing the provisions of the privatization contract to accept employment from the person or business that is operating a privatized service.
HB 332 - AMENDMENTS
HCS - Retain original language but revise procedure and required submissions for requesting approval of contract; require agency to retain responsibility for quality and reliability of service; make contracts of $500,000 or more subject to Auditor's review rather than require Auditor to review contracts of $250,000 or more; delete requirement for charging cost of review to contractor; delete contract termination; specify that provisions do not apply to privatization contracts entered into prior to effective date or to renewal of existing contracts.
SCS - Retain original provisions of the bill except delete the requirement that a private vendor's records related to services provided under the privatization contract are public records under the Open Records Law; require all records in the possession of a state agency in conjunction with the approval, evaluation, or enforcement of a privatization contract, unless exempt under another statute, to be public records under the Open Records Law.
SFA (1, G. Johnson) - Provide that "Privatization contracts" also consist of program administration contracts with the Cabinet for Human Resources, including contracts for child support collections and enforcement with contracting officials as authorized by KRS 205.712.
Jan 20-introduced in House
Jan 21-to State Government (H)
Feb 20-posted in committee
Feb 24-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 25-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for for February 26, 1998
Feb 26-3rd reading, passed 93-2 with Committee Substitute
Feb 27-received in Senate
Mar 2-to State and Local Government (S)
Mar 19-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
Mar 20-2nd reading, to Rules
Mar 23-posted for passage in the Consent Orders of the Day for March 25, 1998
Mar 24-floor amendment (1) filed to Committee Substitute
Mar 25-taken from the Consent Orders of the Day, placed in the Regular Orders of the Day; 3rd reading, passed 37-0 with Committee Substitute and floor amendment (1)
Mar 26-received in House; posted for passage for concurrence in Senate amendments
Mar 31-House concurred in Senate Committee Substitute and Senate floor amendment (1); passed 87-0
Apr 1-enrolled, signed by each presiding officer, delivered to Governor
Apr 10-signed by Governor