SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 420

STATE OF NEW JERSEY

DATED: MARCH 3, 1997

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate, No. 420.

      This bill concerns the privatization of the functions, duties or services of a State agency. It provides that:

      (1) prior to the entering into of a contract between a State agency and a nongovernmental entity for the performance by that entity of any of the functions, duties or services of that agency, the Department of Personnel shall prepare a report for the agency and the entity identifying the functions, duties or services to be performed and the training and experience needed by employees to perform those functions, duties or services;

      (2) any contract between the agency and the entity shall provide that the entity shall employ only persons with the training and experience specified in the report in the performance of the functions, duties or services it contracts to perform; and

      (3) if such persons are not employed, the contract shall be terminated and shall be void.

      For the purposes of this act, "State 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 commision 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.