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91_HB1510eng HB1510 Engrossed 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 "Department" means the Department of Corrections. 16 "Privatization" means a contract between the Department 17 of Corrections and a person or firm in the private sector for 18 the purpose of providing nursing services in Illinois 19 correctional facilities. 20 "State nurse" means a registered professional nurse who 21 is a state employee providing nursing services in Illinois 22 correctional facilities. 23 "Displace" means the layoff, demotion, bumping, 24 involuntary transfer to a new class, title, or location, time 25 based reduction, or reduction in customary hours of work, 26 wages, or benefits of any State nurse. 27 "Cost-effectiveness study" means an analysis conducted in 28 accordance with the standard methodology comparing the 29 projected cost of delivering the service under the proposed 30 contract to the cost of delivering the service in-house. The HB1510 Engrossed -2- LRB9103440REdv 1 analysis shall include in the projected cost of the proposed 2 contract any continuing State costs associated with the 3 service, such as the costs of inspection, supervision, and 4 monitoring. The analysis shall exclude from the cost of 5 delivering the service in-house all overhead costs unless the 6 costs are attributable solely to 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 HB1510 Engrossed -3- LRB9103440REdv 1 costs shall include, but not be limited to, those for 2 inspection, supervision, and monitoring. 3 (b) The contract includes specific provisions pertaining 4 to the qualifications of the registered professional nurse 5 who will perform the work under contract, as well as 6 assurance that the contractor's hiring practices meet 7 applicable nondiscrimination and affirmative action 8 standards. 9 (c) The contract must provide that the contractor shall 10 not pay hourly wages and benefits at a rate lower than that 11 provided to State employees performing comparable nursing 12 services at the entry level step established by the 13 applicable collective bargaining agreement. 14 Section 20. Privatization permitted. Privatization 15 initiatives also shall be permissible when any of the 16 following conditions are met. 17 (1) The services contracted are not available or cannot 18 be performed satisfactorily by State nurses, or are of such a 19 highly specialized or technical nature that the necessary 20 expert knowledge, experience, and ability is not available in 21 the State workforce. 22 (2) A private contractor can provide equipment, 23 materials, facilities, or support services that cannot 24 feasibly be provided by the State in the location where the 25 nursing services are to be performed. 26 (3) The services are of such an urgent, temporary, or 27 occasional nature that State nurses cannot adequately perform 28 them. 29 Section 25. Eligibility of contractors. All contractors 30 submitting bids must submit an eligibility report to the 31 Department, which shall be available for public inspection 32 upon request. The report shall include, but not be limited HB1510 Engrossed -4- LRB9103440REdv 1 to: 2 (1) the union status and representation for each 3 registered professional nurse for the last 2 years; 4 (2) the ethnic, racial, and gender make-up of its 5 workforce for the last 2 years; and 6 (3) a list of the principals of the contractor for the 7 last 4 years. 8 Section 30. Annual performance reports. All contractors 9 awarded procurement under Sections 15 and 20 of this Act 10 shall submit annual performance reports to the Department of 11 Corrections, which shall be available for public inspection 12 upon request. The performance report shall include, but not 13 be limited to: 14 (1) payroll records listing the name, work site, hours 15 worked, hourly wage paid, and fringe benefits paid for each 16 registered professional nurse; 17 (2) the union status and representation for each 18 employee; 19 (3) the ethnic, racial, and gender make-up of the 20 workforce; and 21 (4) a list of the principals of the contractor for the 22 last year. The reports shall be public documents available 23 for public inspection. 24 Section 35. Withholding reimbursement. When 25 privatization initiatives are funded under this Act, the 26 Department of Corrections shall include a withholding clause 27 in the privatization contract providing the State with the 28 authority to withhold reimbursement if the contractor fails 29 to comply with Section 30 of this Act. 30 Section 45. Procedures. Prior to making a decision to 31 contract registered professional nursing services and at a HB1510 Engrossed -5- LRB9103440REdv 1 time that is early in the period of considering such 2 decisions, the Department of Corrections shall notify all 3 organizations that represent State nurses who perform the 4 type of work to be contracted. Any person or organization 5 that has filed with the Department a request for notice shall 6 be contacted immediately by the Department so that he or she 7 may be given a reasonable opportunity to comment on the 8 proposed contract. Departments or agencies submitting 9 proposed contracts shall retain and provide all data and 10 other information relevant to the contracts and necessary for 11 a specific application of the standards set forth in Section 12 15. Any employee organization representing State nurses may 13 request, within 10 days of notification, the Department to 14 review any contract proposed or executed under Section 15. 15 Upon such a request, the Department shall review the contract 16 for compliance with the standards specified in Section 15. 17 Section 50. Other proposed contracts; reviews. The 18 Department of Central Management Services, at the request of 19 an employee organization that represents State nurses, shall 20 review the adequacy of any proposed or executed contract that 21 is of a type enumerated in Section 15. 22 Section 65. Worker protection. At Department of 23 Corrections facilities where medical services are currently 24 provided by a contractor, and cost analysis demonstrates that 25 the requirements for privatization set forth in Section 15 of 26 this Act are not met, the Department shall provide those 27 services directly and shall offer employment to all staff 28 employed by a contractor at each facility to perform their 29 same duties for the Department, subject to available 30 appropriations. The employees shall be granted civil service 31 status in the appropriate State title and shall be granted 32 seniority credit for all time employed by a medical HB1510 Engrossed -6- LRB9103440REdv 1 contractor at the Department of Corrections facility for 2 purposes of salary step placement and accrued benefits only. 3 In no instance shall such employees suffer a diminution in 4 wages or benefits. 5 Section 90. Applicability. This Act applies only to 6 contracts executed or renewed after the effective date of 7 this Act. 8 Section 95. Severability. The provisions of this Act are 9 severable under Section 1.31 of the Statute on Statutes. 10 Section 99. Effective date. This Act takes effect upon 11 becoming law.