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91_HB3549
LRB9110840STsb
1 AN ACT regulating privatization of nursing services to
2 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, corporation, partnership,
18 nonprofit organization, or sole proprietorship in the private
19 sector for the purpose of providing nursing services in
20 Illinois correctional facilities.
21 "State nurse" means a registered professional nurse who
22 is a State employee providing nursing services in Illinois
23 correctional facilities.
24 Section 15. Privatization requirements.
25 (a) Privatization is permissible to achieve cost savings
26 when all of the following conditions are met:
27 (1) The Department of Corrections shall clearly
28 demonstrate that the proposed contract will result in
29 actual overall cost savings to the State.
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1 (A) In comparing costs, there shall be
2 included the State's additional cost of providing
3 the same nursing services as proposed by a
4 contractor. These additional costs shall include
5 the salaries and benefits of additional nursing
6 staff that would be needed and the cost of
7 additional space, equipment, and materials needed to
8 perform the function.
9 (B) In comparing costs, there shall not be
10 included the State's indirect overhead costs unless
11 these costs can be attributed solely to the function
12 in question and would not exist if that function
13 were not performed in State service. "Indirect
14 overhead costs" means the pro rata share of existing
15 administrative salaries and benefits, rent,
16 equipment costs, utilities, and materials.
17 (C) In comparing costs, there shall be
18 included in the cost of a contractor providing
19 nursing service any continuing State costs that
20 would be directly associated with the contracted
21 services. These continuing State costs shall
22 include, but not be limited to, those for
23 inspection, supervision, and monitoring.
24 (2) The contract shall include specific provisions
25 pertaining to the qualifications of the registered
26 professional nurse who will perform the work under
27 contract, as well as assurance that the contractor's
28 hiring practices meet applicable nondiscrimination and
29 affirmative action standards.
30 (b) Privatization is also permissible to achieve cost
31 savings when any of the following conditions is met:
32 (1) The services contracted are not available or
33 cannot be performed satisfactorily by State nurses; or
34 are of such a highly specialized or technical nature that
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1 the necessary expert knowledge, experience, and ability
2 is not available in the State work force.
3 (2) A private contractor can provide equipment,
4 materials, facilities support services that cannot
5 feasibly be provided by the State in the location where
6 the nursing services are to be performed.
7 (3) The services are of such an urgent, temporary,
8 or occasional nature that State nurses cannot adequately
9 perform them.
10 Section 20. Eligibility of contractors. All contractors
11 submitting bids must submit an eligibility report to the
12 Department. The report shall be available for public
13 inspection upon request. The report shall include, but not
14 be limited to:
15 (a) the union status and representation for each
16 registered professional nurse for the last two years;
17 (b) the ethnic, racial, and gender make-up of the
18 contractor's work force for the last 2 years; and
19 (c) a list of the principals of the contractor for the
20 last 4 years.
21 Section 25. Annual performance reports. All contractors
22 awarded procurement under Section 15 of this Act shall submit
23 annual performance reports to the Department of Corrections.
24 These reports shall be available for public inspection upon
25 request. Each performance report shall include, but not be
26 limited to:
27 (a) payroll records listing the name, work site, hours
28 worked, hourly wage paid, and fringe benefits paid for each
29 registered professional nurse;
30 (b) the union status and representation for each
31 employee;
32 (c) the ethnic, racial, and gender make-up of the work
-4- LRB9110840STsb
1 force; and
2 (d) a list of the principals of the contractor for the
3 last year.
4 The reports required under this Section shall be public
5 documents available for public inspection.
6 Section 30. Withholding reimbursement. When
7 privatization initiatives are funded under this Act, the
8 Department of Corrections shall include a withholding clause
9 in the privatization contract providing the State with the
10 authority to withhold reimbursement if the contractor fails
11 to comply with Section 25 of this Act.
12 Section 35. Procedures.
13 (a) Prior to making a decision to contract for
14 registered professional nursing services and at a time that
15 is early in the period for considering such decisions, the
16 Department of Corrections shall notify all organizations that
17 represent State nurses who perform the type of work to be
18 contracted. Any person or organization that has filed with
19 the Department a request for notice shall be contacted
20 immediately by the Department so that that person or
21 organization may be given a reasonable opportunity to comment
22 on the proposed contract.
23 (b) Departments or agencies submitting proposed
24 contracts shall retain and provide all data and other
25 information relevant to the contracts which are necessary for
26 a specific application of the standards set forth in Section
27 15. Any employee organization representing State nurses may
28 request, within 10 days of notification, the Department to
29 review any contract proposed or executed under Section 15.
30 Upon such a request, the Department shall review the contract
31 for compliance with the standards specified in Section 15.
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1 Section 40. Other proposed contracts; review. The
2 Department of Central Management Services, at the request of
3 an employee organization that represents State nurses, shall
4 review the adequacy of any proposed or executed contract that
5 is of a type enumerated in Section 15.
6 Section 45. Worker protection.
7 (a) At Department of Corrections facilities where
8 medical services are currently provided by a contractor, and
9 cost analysis demonstrates that the requirements for
10 privatization set forth in Section 15 of this Act are not
11 met, the Department shall provide those services directly and
12 shall offer employment to all staff employed by a contractor
13 at each facility to perform their same duties for the
14 Department, subject to available appropriations. The
15 employees shall be granted civil service status in the
16 appropriate State title and shall be granted seniority credit
17 for all time employed by a medical contractor at the
18 Department of Corrections facility for purposes of salary
19 step placement and accrued benefits only. In no instance
20 shall these employees suffer a diminution in wages or
21 benefits.
22 (b) As used in this Section, "cost analysis" means an
23 analysis conducted in accordance with the standard
24 methodology comparing the projected cost of delivering the
25 service under the proposed contract to the cost of delivering
26 the service in-house. The analysis shall include in the
27 projected cost of the proposed contract any continuing State
28 costs associated with the service, such as the costs of
29 inspection, supervision, and monitoring. The analysis shall
30 exclude from the cost of delivering the service in-house all
31 overhead costs unless the costs are attributable solely to
32 the service.
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1 Section 90. Applicability. This Act applies only to
2 contracts executed or renewed on or after the effective date
3 of this Act.
4 Section 95. Severability. The provisions of this Act
5 are severable under Section 1.31 of the Statute on Statutes.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.