Legislation that would close the revolving door between state agencies and private vendors passed the House Economic Development and Financial Services Committee on Wednesday, March 25.
Current law, passed by OPEA in 2001, prohibits state employees who exercise decision-making authority over a privatization contract from working for the vendor for one year. When the original bill was passed the penalty was deleted at the last minute. Former administrators in the Department of Corrections have used this loophole to leave state service and go to work immediately for private prison corporations, technically breaking the law, but without penalty.
SB 798, by Sen. Anthony Sykes and Rep. Mark McCullough, establishes a penalty for vendors who hire state employees that have had decision-making authority over their contracts. Corporations who violate this law will lose their state contract with the agency for one year.
“The new section will protect taxpayers from backroom deals,” said OPEA Policy and Research Director Trish Frazier. “Good contracting takes place at arms-length and in the light of day.”
SB 798 now advances to the House floor.
Posted on
Wed, March 25, 2009
by Trish Frazier