Press Release  Auditor Bump Proposes Regulations to Provide Guidance on the Privatization Review Process

Boston, MA — NOTE: The Office of the State Auditor has extended the public comment period for the proposed regulations until October 31, 2017.

Auditor Suzanne M. Bump has proposed regulations governing the process of privatizing state services. The proposed regulations are intended to provide more detailed guidance for state agencies and greater transparency for the public on the decision making process of reviewing privatization proposals.

“The Taxpayer Protection Act is intended to ensure that when a decision is made to privatize state services, it is grounded in the best interests of taxpayers, rather than ideology,” Bump said. “The proposed regulations make clear how this office conducts its analyses of these proposals. They do not create new policy or impose new hurdles—they simply lay out the law’s conditions, and codify the practices of my office, to provide helpful guidance on future proposals. I encourage members of the administration and the public to review and comment on them, either by attending the public hearing or by submitting written comments.”

Under Chapter 296 of the Acts of 1993 (also known as the Taxpayer Protection Act or the Pacheco Law), the Office of the State Auditor (OSA) is responsible for reviewing proposals from state agencies seeking to privatize a service that is currently performed by public employees. Under the law, state agencies must demonstrate and certify to the OSA that the cost to privatize the service will be less than keeping it in-house, of equal or better quality, that the selected contractor has a record of compliance will state regulations, and that the contract will contain required provisions regarding wages, benefits and personnel. The law also gives the OSA the authority to promulgate regulations related to this oversight responsibility.

Among the items the regulations will address are the requirements for bidding on contracts, conditions that an agency must include in privatization contracts, and the financial data that an agency must include in cost estimates for privatization contracts.

The Legal Department of the Auditor’s office will conduct a hearing on the proposed regulations where testimony will be taken. The OSA will provide interested parties with an opportunity to present comments orally or in writing at the hearing. Individuals may also provide written comments through mail or e-mail in advance of the hearing date or during the comment period after the hearing.  The comment period will close at 4:00 p.m. on Thursday, September 21, 2017. (NOTE: The Office of the State Auditor has extended the public comment period for the proposed regulations until October 31, 2017.)  Individuals may e-mail comments to osa.regulations@sao.state.ma.us.  

Details surrounding the public hearing are as follows:

WHO: Office of State Auditor Suzanne M. Bump
WHAT: Hosts a public hearing on proposed privatization regulations
WHEN: Thursday, September 14th, 2017 from 10:00 a.m. – 12:00 p.m.
WHERE: The McCormack Building, One Ashburton Place, 21st Floor, Conference Room 3, Boston MA

Find the proposed privatization regulations here.

Find an FAQ sheet on the privatization regulation hearing.

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