Vermont S 62: An act relating to privatization contracts

Bill Text

BILL AS INTRODUCED S.62
2025 Page 1 of 7

VT LEG #379382 v.1
S.62 1
Introduced by Senators Vyhovsky, Clarkson, Gulick, Harrison, Lyons, 2
Perchlik, Watson and White 3
Referred to Committee on 4
Date: 5
Subject: Executive; contracts; privatization contracts 6
Statement of purpose of bill as introduced: This bill proposes to amend the 7
requirements for the Executive Branch to enter into privatization contracts. 8
An act relating to privatization contracts 9
It is hereby enacted by the General Assembly of the State of Vermont: 10
Sec. 1. 3 V.S.A. § 341 is amended to read: 11
§ 341. DEFINITIONS 12
As used in this chapter: 13
* * * 14
(3) “Privatization contract” means a contract or grant for services valued 15
at $25,000.00 or more per year, which is the same or substantially similar to 16
and in lieu of services previously provided, in whole or in part, by permanent, 17
classified State employees, and which results in a reduction in force of at least 18
one permanent, classified employee, or the elimination of a vacant position of 19
an employee covered by a collective bargaining agreement. 20

BILL AS INTRODUCED S.62
2025 Page 2 of 7

VT LEG #379382 v.1
* * * 1
Sec. 2. 3 V.S.A. § 343 is amended to read: 2
§ 343. PRIVATIZATION CONTRACTS; PROCEDURE 3
(a) An agency shall not enter into a privatization contract, unless all of the 4
following are satisfied: 5
(1)(A) Thirty-five days prior to the beginning of any open bidding 6
process, the agency provides written notice to the collective bargaining 7
representative of the intent to seek to enter a privatization contract. During 8
those 35 days, the collective bargaining representative shall have the 9
opportunity to discuss alternatives to contracting. Such alternatives may 10
include amendments to the contract if mutually agreed upon by the parties. 11
Notices regarding the bid opportunity may not be issued during the 35-day 12
discussion period. The continuation of discussions beyond the end of the 35-13
day period shall not delay the issuance of notices. 14
(B) The agency shall prepare a specific written statement of the 15
services proposed to be the subject of the privatization contract, including the 16
specific quantity and standard or quality of the subject services. For each 17
position in which a bidder will employ any person pursuant to a privatization 18
contract and for which the duties are substantially similar to the duties 19
performed by a permanent, classified State employee, the statement shall also 20
include the minimum wage rate to be paid for each position, which shall not be 21

BILL AS INTRODUCED S.62
2025 Page 3 of 7

VT LEG #379382 v.1
less than the average step of the grade under which the comparable State 1
employee position is paid. This statement shall be subject to 1 V.S.A. chapter 2
5, subchapter 3 (Public Records Act). 3
(2) The proposed contract is projected to result in overall cost savings to 4
the State of at least 10 20 percent above the projected cost of having the 5
services provided by classified State employees. 6
* * * 7
(4) Every bid for a privatization contract shall include provisions 8
specifically establishing the wage rate for each position, which shall not be less 9
than the minimum wage rate contained in the statement described in 10
subdivision (1)(B) of this subsection. Every bid shall also include provisions 11
for the contractor to include in the contract the costs of health, dental, and 12
vision insurance plans for every employee employed pursuant to the contract at 13
least equal to the percentage paid by the State for State employees. The health 14
insurance plan described in the bid shall provide coverage to the employee and 15
the employee’s spouse and dependent children, if any. 16
(5) The agency and the Secretary of Administration shall each certify in 17
writing that: 18
(A) they have complied with all provisions of this section and with 19
all other applicable laws; 20

BILL AS INTRODUCED S.62
2025 Page 4 of 7

VT LEG #379382 v.1
(B) the quality of the services to be provided by the designated bidder 1
is likely to satisfy the quality requirements of the statement prepared pursuant 2
to subdivision (1) of this subsection (a); 3
(C) the designated bidder and its supervisory employee, while in the 4
employ of the designated bidder, have no record of substantial or repeated 5
willful noncompliance with any relevant federal or State regulatory statute, 6
including statutes concerning labor relations, occupational safety and health, 7
nondiscrimination and affirmative action, environmental protection, and 8
conflicts of interest; and 9
(D) the proposed privatization contract is in the public interest in that 10
it meets the applicable quality and fiscal standards set forth in this section. 11
(b) Each privatization contract shall include the following terms and 12
conditions: 13
(1) Provisions specifically establishing the wage rate for each position, 14
which shall not be less than the minimum wage rat