SENATE AMENDMENT
    Bill No. CS/HB 347, 1st Eng.
    Amendment No. ___   Barcode 432558
                            CHAMBER ACTION
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11  Senator Mitchell moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 2, line 11,
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16  insert:  
17         Section 1.  (1)  It is the policy of this state that
18  all state services be performed in the most effective and
19  efficient manner in order to provide the best value to the
20  public. Further, the state recognizes that competition among
21  service providers may improve the quality of the service
22  provided. Therefore, any state agency may identify services
23  provided by the state which are available commercially from a
24  private source or through other alternative means; examine the
25  current method of service delivery; assess the feasibility of
26  privatization, outsourcing, or other alternative means for
27  providing the services; and provide its findings to the
28  Legislative Budget Commission. If the agency recommends to the
29  Legislative Budget Commission that a service may be better
30  provided through private sources or other alternative means,
31  the state agency shall develop methods to accurately and
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    8:03 AM   04/26/01                              h0347c1c-04j01

SENATE AMENDMENT Bill No. CS/HB 347, 1st Eng. Amendment No. ___ Barcode 432558 1 fairly estimate and account for the cost of providing an 2 identified state service and engage in the following process 3 for evaluating proposals for privatization, outsourcing, or 4 other alternative means for providing the service: 5 (a) Conduct an agency in-house cost estimate; a 6 management study; or any other hearing, study, review, or cost 7 estimate concerning any aspect of the identified state 8 service. 9 (b) Review the efficiency of the agency in-house state 10 service. 11 (c) Require that the identified state service be 12 submitted to competitive bidding or another process that 13 creates competition with private sources and encourage state 14 employees to organize and submit a bid for the identified 15 service. 16 (d) Compare the cost of the most efficient agency 17 in-house state service with the cost of private-sector bids. 18 In comparing costs, the state agency must consider the cost of 19 supervising the work of any private contractor. All bids or 20 contracts must include an analysis of health care benefits, 21 retirement, and workers' compensation insurance for employees 22 of the contractor which are reasonably comparable to those 23 provided by the state. 24 (e) Compare the total, accurate, and fair estimated 25 cost to the agency, including all indirect costs related to 26 that agency and costs of agencies such as the Comptroller, the 27 Treasurer, and Attorney General, and other such support 28 agencies. 29 (f) Compare the quality of service in order to 30 determine if the overall quality of the service will increase 31 or decrease with privatization, outsourcing, or other 2 8:03 AM 04/26/01 h0347c1c-04j01
SENATE AMENDMENT Bill No. CS/HB 347, 1st Eng. Amendment No. ___ Barcode 432558 1 alternative means. 2 (g) Determine the net effect on state employees. 3 (h) Determine the risk and consequences associated 4 with privatization, outsourcing, or alternative means for 5 providing the state service. 6 (2) Upon completion of the process and prior to the 7 transfer of any appropriated funds to implement a contract or 8 memorandum of agreement related to privatization, outsourcing, 9 or alternative means of providing state services, the state 10 agency shall provide to the Legislative Budget Commission its 11 recommendations and documentation of the process. Any contract 12 or memorandum of agreement recommended by the state agency 13 related to the delivery of a state service pursuant to this 14 section which requires the transfer of any appropriated funds 15 shall be implemented pursuant to chapter 216, Florida 16 Statutes, and is subject to the approval of the Legislative 17 Budget Commission. 18 (3) If the documentation submitted to the Legislative 19 Budget Commission pursuant to this section fails to 20 demonstrate that the proposed contract or memorandum of 21 agreement will result in an ongoing net cost savings to the 22 state, the Legislative Budget Commission shall deny the 23 transfer of funds proposed to implement the contract or 24 memorandum of agreement. 25 26 (Redesignate subsequent sections.) 27 28 29 ================ T I T L E A M E N D M E N T =============== 30 And the title is amended as follows: 31 On page 1, lines 2 and 3, delete those lines, 3 8:03 AM 04/26/01 h0347c1c-04j01
SENATE AMENDMENT Bill No. CS/HB 347, 1st Eng. Amendment No. ___ Barcode 432558 1 and insert: 2 An act relating to state government; 3 authorizing state agencies to identify state 4 services that are available commercially or 5 through an alternative means, assess the 6 feasibility of privatization or outsourcing, 7 and provide its findings to the Legislative 8 Budget Commission; providing a process for 9 evaluating proposals for privatization, 10 outsourcing, or other alternative means for 11 providing services; requiring that a contract 12 or memorandum of agreement that requires the 13 transfer of appropriated funds to be subject to 14 approval of the Legislative Budget Commission; 15 requiring the commission to deny the transfer 16 of funds if documentation fails to demonstrate 17 an ongoing net cost savings to the state; 18 creating the "Officer 19 20 21 22 23 24 25 26 27 28 29 30 31 4 8:03 AM 04/26/01 h0347c1c-04j01