S2726

An Act concerning the privatization of State agencies and programs and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. At least 180 days before releasing a request for proposal, other procurement document, or proposed agreement with the purpose or intent of entering into a privatization contract with a nongovernmental entity for the assumption or management of any State agency asset, or for the performance of any State agency service or operation, with a cumulative value equal to or greater than $100,000, or with an annual budget equal to or greater than $100,000, the agency shall submit written notice to the agency employees who are likely to be terminated as a result of the privatization.

b. The notice required by this section shall identify the asset to be assumed or managed or the service or operation to be performed by the nongovernmental entity and shall include a copy of the request for proposal, other procurement document, or proposed agreement relating to the proposed privatization contract with the nongovernmental entity.

c. The notice required by this section shall also advise the employees of their right to submit a two-year business plan setting forth a statement of intent by the employees to take over management of the asset or performance of the operation or service in lieu of privatizing the asset, operation, or service. The notice shall also advise the employees of their right to seek assistance from the New Jersey Economic Development Authority in the formulation of the business plan and to seek financing from the authority to implement the plan.

d. If the employees determine to submit a business plan pursuant to this section, the plan shall be submitted to the agency prior to the expiration of the 180-day period established by subsection a. of this section. The plan shall include, but not be limited to, an analysis of the financial, managerial, and budgeting requirements necessary for meeting the specific criteria of the proposal. The analysis shall be in sufficient detail to permit the agency to evaluate the merits of the business plan.

e. Within 60 days of the receipt of the business plan submitted pursuant to this section, the agency shall either approve or disapprove the plan or require modifications of the plan. If the plan is approved, the agency and the employees shall have one year from the date of approval to implement the plan. If the agency disapproves the plan or recommends changes to the plan, the employees shall have 30 days from receipt of the agency's disapproval or recommendations to amend the business plan and resubmit it to the agency for approval. If the employees are unable to obtain the agency's approval within 30 days after the submission of the amended business plan to the agency, the employees may not proceed with the plan.

For the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), "State agency" or "agency" means any of the principal departments in the Executive Branch of the State government, and any division, board, bureau, office, commission, or instrumentality within or created by such department; the Legislature of the State and any office, board, bureau, or commission within or created by the Legislative Branch; and any independent State authority, commission, instrumentality, or agency. A county or municipality shall not be deemed an agency or instrumentality of the State.

2. This act shall take effect immediately.

STATEMENT

This bill requires State agencies to submit notice of a request for proposal, other procurement document or proposed agreement for the privatization of a State agency asset, service, or operation, with a cumulative value of $100,000 or greater, to the employees who are likely to be terminated as a result of the privatization.

The notice required by this bill must be sent at least 180 days before the release of the request for proposal or other document and must identify the asset to be assumed or managed or the service or operation to be performed by the nongovernmental entity. The notice is to advise the employees of their right to submit a two-year business plan to the agency setting forth the employees' intent to take over management of the asset or performance of an operation.

The bill provides that if the employees determine to submit a business plan, the plan will be submitted to the agency prior to the expiration of the 180-day review period. The bill further provides that the agency will either approve or disapprove the plan or require modifications of the plan within 60 days of receipt of the plan from the employees.

If the agency disapproves the plan or requires modifications of the plan, the employees would thereafter have 30 days from receipt of the disapproval or recommendations to amend the plan and resubmit it to the agency for approval.