[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ Enrolled ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] |
91_HB1510
LRB9103440REdv
1 AN ACT in relation to privatization of nursing services
2 in Illinois correctional facilities.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Correctional Facilities Nursing Services Privatization
7 Regulation Act.
8 Section 5. Purpose. It is the purpose of this Act and
9 the policy of the State to ensure that the residents of the
10 State correctional facilities receive high quality nursing
11 services at the lowest possible cost, with due regard for the
12 taxpayers of the State and the needs of both public and
13 private sector nurses.
14 Section 10. Definitions. As used in this Act:
15 "Privatization" means a contract between the Department
16 of Corrections and a person or firm in the private sector for
17 the purpose of providing nursing services in Illinois
18 correctional facilities.
19 "State nurse" means a registered professional nurse who
20 is a state employee providing nursing services in Illinois
21 correctional facilities.
22 "Displace" means the layoff, demotion, bumping,
23 involuntary transfer to a new class, title, or location, time
24 based reduction, or reduction in customary hours of work,
25 wages, or benefits of any State nurse.
26 "Cost-effectiveness study" means an analysis conducted in
27 accordance with the standard methodology of the Bureau of the
28 Budget comparing the projected cost of delivering the service
29 under the proposed contract to the cost of delivering the
30 service in-house. The analysis shall include in the
-2- LRB9103440REdv
1 projected cost of the proposed contract any continuing State
2 costs associated with the service, such as the costs of
3 inspection, supervision, and monitoring. The analysis shall
4 exclude from the cost of delivering the service in-house all
5 overhead costs unless the costs are attributable solely to
6 the service.
7 "Firm" means a corporation, partnership, nonprofit
8 organization, or sole proprietorship.
9 Section 15. Privatization requirements. Privatization
10 is permissible to achieve cost savings when all of the
11 following conditions are met.
12 (a) The Department of Corrections clearly demonstrates
13 that the proposed contract will result in actual overall cost
14 savings to the State, provided that:
15 (1) In comparing costs, there shall be included the
16 State's additional cost of providing the same nursing
17 services as proposed by a contractor. These additional
18 costs shall include the salaries and benefits of
19 additional nursing staff that would be needed and the
20 cost of additional space, equipment, and materials needed
21 to perform the function.
22 (2) In comparing costs, there shall not be included
23 the State's indirect overhead costs unless these costs
24 can be attributed solely to the function in question and
25 would not exist if that function was not performed in
26 State service. Indirect overhead costs means the pro
27 rata share of existing administrative salaries and
28 benefits, rent, equipment costs, utilities, and
29 materials.
30 (3) In comparing costs, there shall be included in
31 the cost of a contractor providing nursing service any
32 continuing State costs that would be directly associated
33 with the contracted services. These continuing State
-3- LRB9103440REdv
1 costs shall include, but not be limited to, those for
2 inspection, supervision, and monitoring.
3 (b) The savings shall be large enough to ensure that
4 they will not be eliminated by private sector and State cost
5 fluctuations that could normally be expected during the
6 contracting period.
7 (c) The amount of savings clearly justifies the size and
8 duration of the contracting agreement.
9 (d) The contract is awarded through a publicized,
10 competitive bidding process.
11 (e) The contract includes specific provisions pertaining
12 to the qualifications of the registered professional nurse
13 who will perform the work under contract, as well as
14 assurance that the contractor's hiring practices meet
15 applicable nondiscrimination, affirmative action standards
16 and the Rutan decree prohibition against hiring and firing
17 employees on the basis of political beliefs and activities.
18 (f) The potential for future economic risk to the State
19 from potential contractor rate increases is minimal.
20 (g) The contract is with a firm.
21 (h) The potential economic advantage of contracting is
22 not outweighed by the public's interest in having nursing
23 services performed directly by State government.
24 (i) The contract must provide that the contractor shall
25 not pay wages and benefits at a rate and level lower than
26 that provided to State employees performing comparable
27 nursing services.
28 Section 20. Privatization permitted. Privatization
29 initiatives also shall be permissible when any of the
30 following conditions are met.
31 (1) The services contracted are not available or cannot
32 be performed satisfactorily by State nurses, or are of such a
33 highly specialized or technical nature that the necessary
-4- LRB9103440REdv
1 expert knowledge, experience, and ability is not available in
2 the State workforce.
3 (2) A private contractor can provide equipment,
4 materials, facilities, or support services that cannot
5 feasibly be provided by the State in the location where the
6 nursing services are to be performed.
7 (3) The services are of such an urgent, temporary, or
8 occasional nature that State nurses cannot adequately perform
9 them.
10 Section 25. Eligibility of contractors. All contractors
11 submitting bids must submit an eligibility report to the
12 department overseeing the privatization contract and the
13 Office of the Comptroller. The report shall include, but not
14 be limited to:
15 (1) documentation of compliance with federal, State, and
16 city labor, anti-discrimination, affirmative action,
17 unemployment, occupational safely and health, environmental
18 protection, and workers' compensation laws;
19 (2) quarterly payroll records listing the name, address,
20 hours worked, hourly wage paid, and fringe benefits paid for
21 each nurse employee for the last 2 years;
22 (3) the union status and representation for each
23 registered professional nurse for the last 2 years;
24 (4) the ethnic, racial, and gender make-up of its
25 workforce for the last 2 years; and
26 (5) a list of the political contributions of the
27 contractor and its principals for the last 4 years. The
28 reports shall be public documents available for public
29 inspection.
30 Section 30. Annual performance reports. All contractors
31 awarded procurement under Section 15 and 20 of this Act shall
32 submit annual performance reports to the Department of
-5- LRB9103440REdv
1 Corrections and the Office of the Comptroller. The
2 performance report shall include, but not be limited to:
3 (1) documentation of compliance with federal, State, and
4 city labor, anti-discrimination, affirmative action,
5 unemployment, occupational safety and health, environmental
6 protection, and workers' compensation laws;
7 (2) payroll records listing the name, address, social
8 security number, hours worked, hourly wage paid, and fringe
9 benefits paid for each registered professional nurse;
10 (3) the union status and representation for each
11 employee;
12 (4) the ethnic, racial, and gender make-up of the
13 workforce; and
14 (5) a list of the political contributions of the
15 contractor and its principals for the last year. The reports
16 shall be public documents available for public inspection.
17 Section 35. Withholding reimbursement. When
18 privatization initiatives are funded under this Act, the
19 Department of Corrections shall include a withholding clause
20 in the privatization contract providing the State with the
21 authority to withhold reimbursement if the contractor fails
22 to comply with Section 30 of this Act.
23 Section 45. Procedures. At any time the Department of
24 Corrections proposes to execute a contract under Section 15
25 it shall notify the Department of Central Management Services
26 of its intention. All organizations that represent State
27 nurses who perform the type of work to be contracted, and any
28 person or organization that has filed with the board a
29 request for notice, shall be contacted immediately by the
30 Department of Central Management Services upon receipt of
31 this notice so that they may be given a reasonable
32 opportunity to comment on the proposed contract. Departments
-6- LRB9103440REdv
1 or agencies submitting proposed contracts shall retain and
2 provide all data and other information relevant to the
3 contracts and necessary for a specific application of the
4 standards set forth in Section 15. Any employee organization
5 representing State nurses may request, within 10 days of
6 notification, the commission to review any contract proposed
7 or executed under Section 15. Upon such a request, the
8 commission shall review the contract for compliance with the
9 standards specified in Section 15.
10 Section 50. Other proposed contracts; reviews. The
11 Department of Central Management Services, at the request of
12 an employee organization that represents State nurses, shall
13 review the adequacy of any proposed or executed contract that
14 is of a type enumerated in Section 15.
15 Section 65. Worker protection. At Department of
16 Corrections facilities where medical services are currently
17 provided by a contractor, and cost analysis demonstrates that
18 the requirements for privatization set forth in Section 15 of
19 this Act are not met, the Department shall provide those
20 services directly and shall offer employment to all staff
21 employed by a contractor at each facility to perform their
22 same duties for the Department. The employees shall be
23 granted civil service status in the appropriate State title
24 and shall be granted seniority credit for all time employed
25 by a medical contractor at the Department of Corrections
26 facility for purposes of salary step placement and accrued
27 benefits only. In no instance shall such employees suffer a
28 diminution in wages or benefits.
29 Section 90. Applicability. This Act applies only to
30 contracts executed or renewed after the effective date of
31 this Act.
-7- LRB9103440REdv
1 Section 95. Severability. The provisions of this Act are
2 severable under Section 1.31 of the Statutes on Statutes.
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.