Oklahoma § 74-589 - Notification to employees of intent to privatize –

§ 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:

Oklahoma Statutes - Title 74. State Government

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.