2006 Outsourcing Bills

October 2006

In 2006 twentystates have either introduced legislation or are considering legislation that carried over from the previous session concerning outsourcing. Most of the bills require studies, reports or express the sense of the legislature regarding outsourcing. Seven states (Hawaii, New Hampshire, New York, Pennsylvania, Rhode Island, and West Virginia) are considering bills that would sanction business or companies that outsource jobs. To date, Florida, Oklahoma, Rhode Island, Virginia, and Washington are the only states that have passed legislation in 2006.

State

Bill

Summary

Last Action
(Bold=Enacted)

Arizona
HB 2424 /
SB 1398

Prohibits state entities from entering into agreements which would result in outsourcing of state service positions.

Additionally Referred To House Committee On Rules, 1/19/06;
Introduced, 1/19/06

California
AB 1012
04/06/06 Amended: removing previous provisions
Requires the Department of Industrial Relations to report annually regarding the impact of the bills provisions on the retention in, recruitment to, and outsourcing from California of computer consulting jobs , including the impact on the wages, hours, overtime, and working conditions of computer consultants in California. (This language has been removed from the bill) Vetoed by Governor, 09/30/06

Florida
HB 1235

Requires executive agencies to address transition of employees affected by outsourcing initiatives.
In House. Died in committee, 05/05/06

HB 7185
Prohibits state agency from renewing or amending contract for outsourcing under certain conditions; provides requirements for certain business cases to outsource by state agency.
Laid on Table, Substituted by SB 2518, 05/02/06

HB 7195
Provides budgetary disincentives to state agencies for noncompliance with legislative mandates; provides legislative intent and requirements for state agencies concerning state agencies' planning and analyzing outsourcing options; requires legislative notification of certain contract violations; provides budgetary disincentives to certain state agencies for noncompliance with specified provisions
Died in House Committee on Governmental Operations, 05/05/06

HGO 34
(Proposed Committee Bill)
Relates to procurement of contractual services by a state agency; prohibits a state agency from renewing or amending a contract for outsourcing under certain conditions; provides contract requirements for an outsourcing procurement
From House Committee on Government Operations: Reported favorably, 03/15/06

SB 2518

Prohibits state agency from renewing or amending contract for outsourcing under certain conditions.
Signed by Governor, Chapter 224, 06/15/06

Hawaii HB 388 /
SB 538
Bans State from contracting with or giving development assistance to companies that contract work offshore. Requires violating companies to repay to the State the amount paid for the percentage of work done by offshore workers. Bans violators from receiving contracts or development assistance for 5 years.
Carried over to 2006 Regular Session, 12/02/05

Indiana
HB 1079

Requires a state agency to do a cost benefit analysis of outsourcing before entering into a contract for services.

Introduced, 1/5/06

Maine SP 613A /
LD 1654
Proposes to enact a variety of measures that would serve to prevent or reduce the loss of jobs in the State through outsourcing.
Placed in Legislative Files (Dead), 01/4/06

Massachusetts
HB 1645

Establishes a special commission to make an investigation and study of the use of offshore outsourcing of labor in state contracts.
To House Committee On Rules, 03/13/06

Michigan HB 4102
Requires annual reporting to the legislature of state contracts with businesses having companies that outsource or relocate out of country
To House Committee on Government Operations, 02/02/05

SB 1155
Waives the high school graduation requirement for community college admissions for outsourced workers and certain low income individuals
To Senate Committee on Banking and Financial Institutions, 03/16/06

SB 1158
Provides a period of interest only payments on eligible loans from a domestic credit union to an outsourced worker
To Senate Committee on Banking and Financial Institutions, 03/16/06

SB 1161
Provides low-interest loans to full-time students with a parent who has lost a job due to outsourcing
To Senate Committee on Banking and Financial Institutions, 03/16/06

SB 1162
Provides a period of interest only payments on eligible loans from a bank to an outsourced worker
To Senate Committee on Banking and Financial Institutions, 03/16/06

SB 1163 Provides a period of interest only payments on eligible mortgage loans to an outsourced worker To Senate Committee on Banking and Financial Institutions, 03/16/06

SB 1164
Provides a period of interest only payments on eligible loans from an association to an outsourced worker
To Senate Committee on Banking and Financial Institutions, 03/16/06

SB 1165
Provides a period of interest only payments on eligible loans from a savings bank to an outsourced worker
To Senate Committee on Banking and Financial Institutions, 03/16/06

SB 1166

Allows deferment of loan principal payments by individual who has lost job from outsourcing.

Referred to Committee on Banking, 3/16/06

SB 1235
Authorizes the Attorney General to conduct investigations where there is reason to believe that a single employer may be outsourcing 100 or more jobs from the state in a 12-month period to determine if the employer is complying with applicable federal and state laws.
To Senate Committee on Economic Development, Small Business and Regulatory Reform, 05/02/06

SB 1237 Provides a short-term loan program for certain qualified outsourced workers
To Senate Committee on Economic Development, Small Business and Regulatory Reform, 05/02/06

SB 1238
Requires outsourced worker accountability form for state contract bids; authorizes the bid evaluator to consider the percentage of work to be done in the state.
To Senate Committee on Economic Development, Small Business and Regulatory Reform, 05/02/06

SB 1239
Requires business to provide summary on outsourced workers in annual report and for data to be collected and submitted to Legislature.
To Senate Committee on Economic Development, Small Business and Regulatory Reform, 05/02/06

SB 1392 Establishes worker emergency fund in Department of Treasury to ameliorate the consequences of outsourced workers
To Senate Committee on Appropriations, 08/30/06

SR 129
Urges the Congress of the United States to require all finance companies doing business in Michigan to allow for up to 12 months of interest-only payments for persons who have lost their jobs due to outsourcing
To Senate Committee on Economic Development, Small Business and Regulatory Reform, 05/02/06

Minnesota HB 1345
Requires reporting of job movement throughout Minnesota prompted by business subsidies; requires annual reporting under the state dislocated worker program and the unemployment insurance program about the termination and outsourcing of employment
To House Committee on Commerce and Financial Institutions, 02/24/05

HB 1346 /
SB 1511 Requires reporting under the state dislocated worker program and the unemployment insurance program about termination and outsourcing of employment
To House Committee on Commerce and Financial Institutions, 02/24/05;
To Senate Committee on Jobs, Energy and Community Development, 03/10/05

Montana LC 502 Revises the professional employer organization law
Draft request received, 09/20/06

New Hampshire
HB 524

Prohibits companies that have outsourced 50 or more New Hampshire jobs from obtaining state contracts or economic aid.
Interim Study Reported, 09/19/06

New Jersey
AR 138 /
SR 30
03/16/06 Passed Assembly

Expresses sense of the Senate that President Bush should reconsider his decision to outsource port operations to company controlled by a foreign government.
Adopted by Assembly, 03/17/06;
To Senate Committee On Law And Public Safety And Veterans Affairs, 03/02/06

AR 149

Memorializes Congress to enact legislation concerning public disclosure of companies outsourcing jobs.
Second Reading, 06/01/06

New York AB 10515 /
SB 1597
Enacts the New York consumer and worker protection act; requires employers to provide notice of the outsourcing of jobs prior to such outsourcing; prohibits any governmental agency from engaging in the practice of outsourcing jobs; requires ratification by the legislature of procurement contracts between the state, through the governor, and any multinational trade organization or corporation.
To Assembly Committee on Consumer Affairs and Protection, 03/29/06;
To Senate Committee on Consumer Protection, 01/04/06

AB 1213 /
SB 4750
Prohibits the outsourcing of jobs by business entities receiving state financial incentives; provides for repayment thereof and a five-year ban on assistance for violations; requires state entities providing financial incentives to business entities and business entities receiving financial incentives to each report thereon to the attorney general; such reports to be available to the public; enacts the financial incentives protection act.
To Assembly Committee on Economic Development, Job Creation, 01/19/05;
To Senate Committee on Corporations, Authorities and Commissions, 01/04/06

AB 28
Eliminates developmental aid for businesses that decrease below their employment base level due to outsourcing; prevents such businesses from re-applying for lost developmental aid until their employment base level is restored.
To Assembly Committee on Economic Development, Job Creation, 01/05/05

AB 4781 Prohibits the outsourcing of jobs by business entities receiving state developmental assistance Held for consideration in Assembly Committee on Economic Development, Job Creation, 05/23/06

AB 9828

Eliminates developmental aid for businesses that decrease below their employment base level due to outsourcing.
Held for consideration in Assembly Committee on Economic Development, Job Creation, 05/23/06

SB 4277

Prohibits the investment of the common retirement fund in the stocks, securities or other obligation of any company or institution that outsources jobs.
To Senate Committee on Civil Service and Pensions, 05/23/06

SB 4761
03/01/06 Passed Senate

Directs the commissioner of labor to issue or cause to be issued a report on issues relating to offshore outsourcing of information technology jobs and the future of New York State's job market.
To Assembly Committee on Labor, 03/01/06

SB 7132
04/24/06 Passed Senate
Requires that state contracts for personal service require disclosure of off-shore outsourcing of work; further requires details of the off-shore work, workers, hours and pay level.
To Assembly Committee on Labor, 04/24/06

SB 7380
Enacts the "job outsourcing protection act"; eliminates developmental aid for businesses reduced below their employment base level due to outsourcing.
To Senate Committee on Rules, 06/23/06

Ohio SB 57
Creates the Outsourced Worker Assistance Fund to provide financial assistance for enrollment in postsecondary education programs by an individual who was outsourced
To Senate Committee on Finance and Financial Institutions, 02/16/05

Oklahoma

HR 1068

Resolution encouraging the President of the United States and Congress to reconsider awarding the port contract to the United Arab Emirates
To Secretary of State, 2/22/06

Pennsylvania HB 36
Provides that a corporation may not transfer any jobs performed within the United States to any foreign country without approval of its board of directors; provides that an officer of a corporation may not receive any financial benefit as a result of the corporation's transfer of jobs to a foreign country
To House Committee on Commerce, 01/25/05

HB 452
Prohibits Commonwealth agencies from awarding contracts to bidders engaged in outsourcing of jobs or functions.
To House Committee on State Government, 02/14/05

HB 453 Prohibits Commonwealth agencies from awarding contracts to bidders that outsource.
To House Committee on State Government, 02/14/05

HB 454 Prohibits Commonwealth agencies from awarding contracts to bidders that outsource.
To House Committee on State Government, 02/14/05

HR 70
Creates a task force to investigate and prepare a report on the economic impact of offshore outsourcing on the Commonwealth
To House Committee on State Government, 02/14/05

HR 215
Encourages the Congress of the United States and the Federal Government to take steps to discontinue outsourcing and to prevent the Internal Revenue Service from hiring foreign contractors to prepare, process or collect any personal financial information of United States taxpayers.
To House Committee on Commerce, 03/31/05

SR 68
Directs the Joint State Government Commission to study the economic impact of offshore outsourcing on Pennsylvania's service sector, particularly as it pertains to the area of information technology jobs.
To Senate Committee on Labor and Industry, 04/06/05

Rhode Island

SB 2524
Prohibits companies that have outsourced jobs from obtaining state procurement contracts. To Senate Finance Committee, 2/9/06

SR 2470

Requests an investigation into northwest airlines proposed outsourcing of 3,000 flight attendant jobs.
Passed Senate, Resolution 2006-142, 03/21/06

Virginia
HB 676

Requires the Transportation Commissioner annually to report in writing to the General Assembly, on actions, accomplishments, achievements and initiatives of the Department of Transportation in the preceding fiscal years that involved outsourcing, privatization, and downsizing.
Signed by Governor, Chapter 420, 03/31/06

HB 677
Requires the Transportation Commissioner to report annually to the General Assembly on all actions and initiatives of the Virginia Department of Transportation that involved outsourcing, privatization, and downsizing; requires the Commissioner to provide, detailed and specific plans for outsourcing, privatization, and downsizing.
Signed by Governor, Chapter 544, 04/04/06

HJR 52

Establishes a joint subcommittee to study the feasibility and appropriateness of consolidating or outsourcing state agencies that issue licenses and permits and collect taxes, and to issue a report to the 2007 Session of the General Assembly.
In House Committee On Rules: Continued To 2007, 2/8/06

Washington
HB 1724

Requires disclosure of outsourcing.

To House Committee on Commerce and Labor, 01/09/06

HB 1725 /
SB 5777 Prohibits the offshoring of work under state contracts.
To House Committee on Commerce and Labor, 01/09/06;
To Senate Committee on Ways and Means 01/09/06

HB 2440

Requires persons doing business with the state and municipalities to report use of offshore items.
To House Committee on Commerce and Labor, 01/09/06

HB 3160

Requires disclosure of offshore outsourcing.
To House Committee on Appropriations, 2/03/06

HB 5063 Relating to an annual report by the Commonwealth Transportation Commissioner on outsourcing, privatization and downsizing
Signed by Governor, Chapter 7, 10/10/06

HCR 4405

Creates a task force to study offshore outsourcing.

To House Committee on Commerce and Labor, 01/09/06

West Virginia
HB 2400

Provides that companies that lose one hundred or more employees due to outsourcing of jobs are ineligible to enter procurement contracts with the state or local governments or receive government grants.
To House Committee on Government Organization, 01/11/06

Source: LexisNexis bill tracking of StateNet database, copyright StateNet, Information for Public Affairs.