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New Montana Law Requires Accountability in Privatization

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Montana Gov. Brian Schweitzer signed into law April 19 legislation that will result in greater transparency and accountability in state contracting procedures.

The bill, strongly promoted by MEA-MFT, a merged state federation of the NEA and AFT, cleared the Legislature April 6. It gives all unions representing state employees direct and early access to privatization plans, as well as a voice in the decision-making process. In addition to requiring the legislative audit committee to review and hold public hearings on privatization plans, the measure gives the governor sole authority to approve or reject plans to privatize public services that are currently or normally conducted by state employees. The new law also creates a new standard for agency privatization plans.

"We get to be part of the process in a fairly significant way," says MEA-MFT president Eric Feaver.

Generally, "clean contracting" legislation requires that private firms meet certain rules--including strict cost, quality and accountability standards--before being granted government contracts. Passage of such legislation is now pending in a number of states, including Connecticut, New York and Wisconsin, and is a top legislative priority for the AFT Public Employees division.

The Montana statute can be viewed at the state's Web site: http://data.opi.state.mt.us/bills/2005/billhtml/SB0299.htm

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