2020 Oklahoma Statutes
Title 74. State Government
§74-589. Notification to employees of intent to privatize – Employee cost-saving recommendations.

A. Upon a finding by the Office of Management and Enterprise Services pursuant to Section 588.1 of this title that the agency has complied with the requirements of the Oklahoma Privatization of State Functions Act, and before any agency can contract to privatize a function, program, service, unit or division, the agency must provide:

1. Notification to employees impacted by the proposed privatization by the agency of its intent to privatize a function, program, service, unit, or division of the agency;

2. Notification to affected employees that they will have the opportunity to submit cost-savings recommendations for improving the operations, efficiency or organization of the entity being considered for privatization; and

3. Notification by the agency simultaneously with the notice required pursuant to paragraph 1 of this subsection, to the Director of the Office of Management and Enterprise Services of the intent of the agency to privatize a state function.

B. Upon a request by the affected employees, the agency shall provide information about the delivery of services to its employees as they develop recommendations to be considered. This information shall include revenue expenditure data, wage and salary data, an inventory of the supplies, equipment, and facilities associated with the program being privatized, and the cost analysis performed by the agency.

C. Any recommendations submitted by agency employees shall be considered by the agency, separate and apart from the bid process, with nonemployee bids. The agency shall make the final determination whether to accept the winning nonemployee bid or accept the employee recommendations in lieu of the winning bid.

D. After an agency has met the requirements of subsection A of this section, the agency shall notify the Director of the Office of Management and Enterprise Services, the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives of the intent of the agency to solicit bids in accordance with this section.

E. The agency shall provide a comprehensive written analysis of the contract cost based upon the designated bid, specifically including the costs of transition from public to private operation, severance payments to agency employees, and monitoring and otherwise administering contract performance.

F. The agency shall require the following information prior to entering into a contract to privatize a function, program, service, unit, or division:

1. Financial stability of the vendor, past and present litigation, and references related to past government contract performance information; and

2. Detail how the vendor will perform the contract, including staffing and equipment information.

G. The agency shall establish a plan and cost analysis on how to return the privatized function, program, service, unit, or division to the state if there is a contract cancellation.

H. Any contract with a vendor to privatize a function, program, service, unit, or division shall require that the payment to the contractor be linked to performance. The contract shall provide that the amount agreed upon in the contract may be reduced if the agency experiences a budget shortfall.

I. Each privatization contract shall contain provisions requiring the contractor to offer available employee positions pursuant to the contract to qualified regular employees of the agency whose state employment is terminated because of the privatization contract and who satisfy the hiring criteria of the contractor.

Added by Laws 1999, c. 281, § 4, eff. Jan. 1, 2000. Amended by Laws 2003, c. 355, § 3, eff. Nov. 1, 2003; Laws 2012, c. 304, § 864; Laws 2018, c. 227, § 2, eff. Nov. 1, 2018.

NOTE: Editorially renumbered from § 595.3 of this title to provide consistency in numbering.