An act relating to privatization contracts

H.359 regulates when Vermont state agencies can replace permanent employees with private contractors. It requires agencies to provide 35 days' written notice to unions before seeking bids for privatization contracts, including details on wages (at least equal to comparable state positions) and services. Contracts must include wage standards, health insurance parity, performance metrics, and just-cause employment protections for contractor workers. The bill also mandates Attorney General certification that contracts align with merit system principles and requires annual audits to verify 10% cost savings and performance compliance before renewal. This directly affects state agencies, union-represented workers, and private contractors hired for state services.