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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                                                  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
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                                                  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.
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26  (Redesignate subsequent sections.)
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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,
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                                                  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
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