ASSEMBLY, No. 2917

STATE OF NEW JERSEY

INTRODUCED MAY 5, 1997

By Assemblyman KRAMER

An Act concerning certain public contracts 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. Whenever a public entity proposes to solicit bids from private entities in connection with a contract for work or services which would result in the loss of public employee jobs, the public entity shall first prepare a cost analysis which shall evaluate the circumstances under which it may be more cost-effective to use a private entity or public employees to perform the work or service. If, after reviewing the circumstances and the cost analysis, the public entity determines to solicit bids from private entities, it shall allow the affected employees the opportunity to bid on the contract. A bid submitted by public employees shall be considered along with any bids submitted by private entities. If the contract is awarded to the public employees, the public employees shall continue in public employment but under the terms and conditions of the contract. Public employees who are covered by a collective bargaining agreement may be represented in the preparation and submittal of the employees' bid by the employees' bargaining representative. Public employees who are not covered by a collective bargaining agreement may organize and select a qualified party to represent the employees in preparing and submitting a bid. The public entity shall provide the employees with any necessary assistance in preparing and submitting a bid.

    b. A bid submitted by public employees shall include the estimated cost of base expenses and contract management expenses, including the cost of salaries, fringe benefits, service and supplies, and equipment; contractor support costs; and any one-time costs.

    c. Notwithstanding the provisions of any other law to the contrary, when submitting a bid public employees may agree to accept modifications in salaries, fringe benefits and working conditions, except that the pension rights of any employee who is a member of a publicly-administered retirement system shall not be affected.

    d. The provisions of this act shall be a condition of any collective bargaining agreement entered into after the effective date of this act between a public entity and its employees.

    e. A cost analysis prepared by a public entity pursuant to this act shall be accessible as a public record under P.L.1963, c.73 (C.47:1A-1 et seq.).

    f. As used in this act, "public entity" means the State, any county, municipality, school district, public authority, public agency and any other political subdivision or public body in the State.

    2. This act shall take effect immediately.

STATEMENT

    This bill would allow public employees the opportunity to bid on certain contracts which may result in the privatization of a public function. It provides that whenever a public entity proposes to solicit bids from private entities in connection with a contract for work or services which would result in the loss of public employee jobs, the public entity shall first prepare a cost analysis which shall evaluate the circumstances under which it may be more cost-effective to use a private entity or public employees to perform the work or service. If, after reviewing the circumstances and the cost analysis, the public entity determines to solicit bids from private entities, it shall allow the affected employees the opportunity to bid on the contract.

    If the public employees are awarded the contract, they would continue in public employment but under the terms and conditions of the contract. Public employees covered by a union contract may be represented in the bidding process by the employees' bargaining representative. Other public employees may organize and select a qualified party to represent them in submitting a bid. The public entity would be required to provide the employees with any necessary assistance in preparing and submitting a bid. The bill's provisions would be a condition of any collective bargaining agreement entered into after the bill's effective date. When submitting a bid public, public employees may agree to accept modifications in salaries, fringe benefits and working conditions. However, the pension rights of any public employee may not be affected.

Allows public employees the opportunity to bid on contracts which would privatize certain public functions.