Citations Affected: IC 4-12-13.
Synopsis: Review of privatization plans. Requires a state agency to
develop a privatization plan before privatizing any state program.
Requires the state agency to hold a hearing on the plan and report the
results of the hearing to the public and the budget committee. Requires
the budget committee to review privatization plans before
implementation and to make advisory recommendations to the
Effective: July 1, 2007.
January 8, 2007, read first time and referred to Committee on Tax and Fiscal Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
function, project, or duty of a state agency.
(f) "State agency" has the meaning set forth in IC 4-13-1-1(b).
Sec. 2. Before a state agency privatizes a program, the state agency must prepare a privatization plan that includes the following:
(1) A description of the program to be privatized, including a reference to the legal authority under which the program was created.
(2) Detailed budget information that includes a list of revenues and expenditures for the two (2) most recent fiscal years.
(3) A list of:
(A) all state employees currently employed by the state agency to administer the program; and
(B) the estimated effect of the privatization on the employment status of each employee.
(4) A list of the:
(A) assets of the program; and
(B) proposed disposition of the assets.
(5) An estimate of:
(A) cost savings; or
(B) additional costs;
resulting from privatizing the program compared to the costs of the existing program. Cost estimates must include the estimated cost to the state of inspecting, supervising, and monitoring the program if the privatization is implemented. The estimate must also include an estimate of any costs that would be incurred if the privatization contract is discontinued.
(6) An estimate of the current and future economic impact of privatization on other state programs, including:
(A) public assistance programs;
(B) unemployment insurance programs;
(C) retirement programs; and
(D) agency personal services budgets designated to pay accrued vacation and sick leave benefits.
(7) An estimate of the increases or decreases in the cost and quality of services or goods provided to the public that will result from the privatization.
(8) An estimate of the changes in individual wages and benefits that will result from the privatization.
(9) Descriptions and plans for ways the privatization will
deliver the same or better services at a lower cost.
(10) A narrative explanation and justification for the privatization.
Sec. 3. At least one hundred eighty (180) days before the implementation date of the privatization, the state agency shall release to the:
(1) public; and
(2) budget committee;
the privatization plan prepared under section 2 of this chapter
Sec. 4. At least ninety (90) days before the implementation date of the privatization, the state agency shall conduct at least one (1) public hearing on the privatization plan at which the state agency shall take public comments and testimony. A public hearing under this chapter must be held in compliance with IC 5-14-1.5.
Sec. 5. At least forty-five (45) days before the implementation date of the privatization, the state agency shall release to the:
(1) public; and
(2) budget committee;
a summary of the hearing or hearings conducted under section 4 of this chapter.
Sec. 6. At least thirty (30) days before the implementation date of the privatization, the budget committee shall review the privatization plan and the findings of the hearing or hearings held by the state agency. After review of the plan and the findings, the budget committee shall make an advisory recommendation to the governor concerning the proposed privatization.
Sec. 7. At least fifteen (15) days before the implementation date of the privatization, the governor shall approve or disapprove the privatization plan. The governor shall issue a written statement stating the reasons for approval or disapproval of the plan.