Bill > H0359

This bill proposes significant changes to Vermont's regulations governing privatization contracts, which are defined as contracts for services valued at $25,000 or more per year that either replace services currently provided by state employees or substantially replace the duties of a vacant state government position. The bill introduces more stringent requirements for entering into such contracts, including a mandatory 35-day notification period to collective bargaining representatives before bidding, during which alternative solutions can be discussed. Bid proposals must now include detailed wage information, and every privatization contract must specify wage rates at or above prevailing state employee rates, provide comparable health insurance, include quarterly payroll reporting, and ensure nondiscrimination and whistleblower protections. The bill also mandates that the Agency of Administration and Secretary of Administration certify the contract's compliance with legal standards, quality of services, and public interest. Additionally, the bill requires the Auditor of Accounts to review contracts before renewal, analyzing cost savings and performance measures, and prohibits contract renewal if performance standards are not met. A separate provision requires the Agency of Administration to assess potential future modifications to privatization contract rules and submit a report by February 1, 2026, with the overarching legislative intent being to prevent privatization contracts when no permanent state employee position exists to perform the equivalent services.

Government Affairs

https://legislature.vermont.gov/bill/status/2026/H.359