House advances S.96 after amendment to tighten privatization-contract oversight
May 08, 2024 | HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont
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The Vermont House on Monday voted to propose to the Senate amendments to S.96, a bill addressing privatization contracts, after the House Government Operations and Military Affairs Committee adopted changes to strengthen transparency and protections for state employees.
The committee’s amendment narrows the definition of a privatization contract to agreements substantially similar to services provided by permanent classified state employees or vacant positions and removes the requirement that a reduction-in-force trigger the review. A key change in the amendment will take effect July 1, 2025. The bill also requires contractors to disclose wage rates and benefits paid to workers on covered contracts so contracting agencies can assess whether pay and benefits are comparable to state employees.
Committee members explained the amendment was intended to prevent departments from using contractors to do work similar to state positions — sometimes in the same office — without providing transparency about contractor pay or subjecting contracts to the privatization-review process. The amendment explicitly excludes work not currently performed by state employees, such as many capital-construction projects.
The bill directs the Agency of Administration, in consultation with the Joint Fiscal Office, to assess fiscal and operational impacts of possible future changes (including whether grants should be included in the definition) and to report to legislative committees; the committee described those studies as separate from the immediate amendment.
On the floor the Appropriations Committee urged caution, warning that the new disclosure and benefit-equality requirements could deter bidders and raise state costs; the Appropriations reporter said the fiscal impact is indeterminate and signaled a possible no vote on final passage by some members. Supporters countered that raising contractor transparency and encouraging comparable pay would support long-term workforce stability and careers in Vermont government.
The House proposed the amended bill to the Senate to be amended as recommended and ordered third reading.
The committee’s amendment narrows the definition of a privatization contract to agreements substantially similar to services provided by permanent classified state employees or vacant positions and removes the requirement that a reduction-in-force trigger the review. A key change in the amendment will take effect July 1, 2025. The bill also requires contractors to disclose wage rates and benefits paid to workers on covered contracts so contracting agencies can assess whether pay and benefits are comparable to state employees.
Committee members explained the amendment was intended to prevent departments from using contractors to do work similar to state positions — sometimes in the same office — without providing transparency about contractor pay or subjecting contracts to the privatization-review process. The amendment explicitly excludes work not currently performed by state employees, such as many capital-construction projects.
The bill directs the Agency of Administration, in consultation with the Joint Fiscal Office, to assess fiscal and operational impacts of possible future changes (including whether grants should be included in the definition) and to report to legislative committees; the committee described those studies as separate from the immediate amendment.
On the floor the Appropriations Committee urged caution, warning that the new disclosure and benefit-equality requirements could deter bidders and raise state costs; the Appropriations reporter said the fiscal impact is indeterminate and signaled a possible no vote on final passage by some members. Supporters countered that raising contractor transparency and encouraging comparable pay would support long-term workforce stability and careers in Vermont government.
The House proposed the amended bill to the Senate to be amended as recommended and ordered third reading.
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