General Assembly Committee Bill No. 6086
January Session, 2015 LCO No. 5801
*05801HB06086GAE*
Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS
Introduced by:
(GAE)
General Assembly
Committee Bill No. 6086
January Session, 2015
LCO No. 5801
*05801HB06086GAE*
Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS
Introduced by:
(GAE)
AN ACT EXPANDING THE SET-ASIDE PROGRAM TO INCLUDE MUNICIPALITIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsections (a) to (d), inclusive, of section 4a-60g of the general statutes are repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(a) As used in this section and sections 4a-60h to 4a-60j, inclusive, the following terms have the following meanings:
(1) "Small contractor" means any contractor, subcontractor, manufacturer, service company or nonprofit corporation (A) that maintains its principal place of business in the state, (B) that had gross revenues not exceeding fifteen million dollars in the most recently completed fiscal year prior to such application, and (C) that is independent. "Small contractor" does not include any person who is affiliated with another person if both persons considered together have a gross revenue exceeding fifteen million dollars.
(2) "Independent" means the viability of the enterprise of the small contractor does not depend upon another person, as determined by an analysis of the small contractor's relationship with any other person in regards to the provision of personnel, facilities, equipment, other resources and financial support, including bonding.
(3) "State agency" means each state board, commission, department, office, institution, council or other agency with the power to contract for goods or services itself or through its head.
(4) "Minority business enterprise" means any small contractor (A) fifty-one per cent or more of the capital stock, if any, or assets of which are owned by a person or persons who (i) exercise operational authority over the daily affairs of the enterprise, (ii) have the power to direct the management and policies and receive the beneficial interest of the enterprise, (iii) possess managerial and technical competence and experience directly related to the principal business activities of the enterprise, and (iv) are members of a minority, as such term is defined in subsection (a) of section 32-9n, or are individuals with a disability, or (B) which is a nonprofit corporation in which fifty-one per cent or more of the persons who (i) exercise operational authority over the enterprise, (ii) possess managerial and technical competence and experience directly related to the principal business activities of the enterprise, (iii) have the power to direct the management and policies of the enterprise, and (iv) are members of a minority, as defined in this subsection, or are individuals with a disability.
(5) "Affiliated" means the relationship in which a person directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another person.
(6) "Control" means the power to direct or cause the direction of the management and policies of any person, whether through the ownership of voting securities, by contract or through any other direct or indirect means. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, twenty per cent or more of any voting securities of another person.
(7) "Person" means any individual, corporation, limited liability company, partnership, association, joint stock company, business trust, unincorporated organization or other entity.
(8) "Individual with a disability" means an individual (A) having a physical or mental impairment that substantially limits one or more of the major life activities of the individual, which mental impairment may include, but is not limited to, having one or more mental disorders, as defined in the most recent edition of the American Psychiatric Association's "Diagnostic and Statistical Manual of Mental Disorders", or (B) having a record of such an impairment.
(9) "Nonprofit corporation" means a nonprofit corporation incorporated pursuant to chapter 602 or any predecessor statutes thereto.
(10) "Municipality" means any town, consolidated town and city or consolidated town and borough.
(11) "Quasi-public agency" has the same meaning as provided in section 1-79.
(12) "Awarding authority" means the head of a state agency or quasi-public agency or the chief executive officer of a municipality with the power to contract for goods or services.
(13) "Public works contract" means any agreement between any individual, firm or corporation and the state or any political subdivision of the state (A) for construction, rehabilitation, conversion, extension, demolition or repair of a public building or highway or other changes or improvements in real property, and (B) which is financed in whole or in part by the state, including, but not limited to, matching expenditures, grants, loans, insurance or guarantees.
(b) It is found and determined that there is a serious need to help small contractors, minority business enterprises, nonprofit organizations and individuals with disabilities to be considered for and awarded state and municipal public works contracts [for the construction, reconstruction or rehabilitation of public buildings, the construction and maintenance of highways] and contracts for the purchase of goods and services financed in whole or in part by the state, including, but not limited to, matching expenditures, grants, loans, insurance or guarantees. Accordingly, the necessity, in the public interest and for the public benefit and good, of the provisions of this section, sections 4a-60h to 4a-60j, inclusive, and sections 32-9i to 32-9p, inclusive, is declared as a matter of legislative determination. Notwithstanding any provisions of the general statutes to the contrary, and except as set forth [herein] in this section, the head of each state and quasi-public agency and the chief executive officer of each [political subdivision of the state other than a] municipality shall set aside in each fiscal year, for award to small contractors, on the basis of competitive bidding procedures, contracts or portions of public works contracts [for the construction, reconstruction or rehabilitation of public buildings, the construction and maintenance of highways] and contracts for the purchase of goods and services financed in whole or in part by the state. Eligibility of nonprofit corporations under the provisions of this section shall be limited to predevelopment contracts awarded by the Commissioner of Housing for housing projects. The total value of such contracts or portions thereof to be set aside by each such agency or municipality shall be at least twenty-five per cent of the total value of all contracts let by the head of such agency or the chief executive officer of such municipality in each fiscal year, provided that neither: (1) A contract that may not be set aside due to a conflict with a federal law or regulation; or (2) a contract for any goods or services which have been determined by the Commissioner of Administrative Services to be not customarily available from or supplied by small contractors shall be included. Contracts or portions thereof having a value of not less than twenty-five per cent of the total value of all contracts or portions thereof to be set aside shall be reserved for awards to minority business enterprises.
(c) The [head of any state agency or political subdivision of the state other than a municipality] awarding authority may, in lieu of setting aside any contract or portions thereof, require any general or trade contractor or any other entity authorized by such state or quasi-public agency or municipality to award contracts, to set aside a portion of any contract for subcontractors who are eligible for set-aside contracts under this section. Nothing in this subsection shall be construed to diminish the total value of contracts which are required to be set aside by any state or quasi-public agency or [political subdivision of the state other than a] municipality pursuant to this section.
(d) [The heads of all state agencies and of each political subdivision of the state other than a municipality] Each awarding authority shall notify the Commissioner of Administrative Services of all contracts to be set aside pursuant to subsection (b) or (c) of this section at the time that bid documents for such contracts are made available to potential contractors.
Sec. 2. Subsection (h) of section 4a-60g of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(h) The provisions of this section shall not apply to any state or quasi-public agency or [political subdivision of the state other than a] municipality for which the total value of all contracts or portions of contracts of the types enumerated in subsection (b) of this section is anticipated to be equal to ten thousand dollars or less.
Sec. 3. Subsections (l) and (m) of section 4a-60g of the general statutes are repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(l) On or before August 30, 2007, and annually thereafter, each state and quasi-public agency setting aside contracts or portions of contracts and on or before August 30, 2016, and annually thereafter, each [political subdivision of the state other than a] municipality setting aside contracts or portions of contracts shall prepare a report establishing small and minority business set-aside program goals for the twelve-month period beginning July first in the same year. Each such report shall be submitted to the Commissioner of Administrative Services, the Commission on Human Rights and Opportunities and the cochairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and government administration. [and elections.]
(m) On or before November 1, 1995, and quarterly thereafter, each state and quasi-public agency [and each political subdivision of the state other than a municipality] setting aside contracts or portions of contracts and on or before November 1, 2016, and quarterly thereafter, each municipality setting aside contracts or portions of contracts shall prepare a status report on the implementation and results of its small business and minority business enterprise set-aside program goals during the three-month period ending one month before the due date for the report. Each report shall be submitted to the Commissioner of Administrative Services and the Commission on Human Rights and Opportunities. Any state or quasi-public agency or [political subdivision of the state, other than a] municipality, that achieves less than fifty per cent of its small contractor and minority business enterprise set-aside program goals by the end of the second reporting period in any twelve-month period beginning on July first shall provide a written explanation to the Commissioner of Administrative Services and the Commission on Human Rights and Opportunities detailing how the state or quasi-public agency or [political subdivision] municipality will achieve its goals in the final reporting period. The Commission on Human Rights and Opportunities shall: (1) Monitor the achievement of the annual goals established by each state and quasi-public agency and [political subdivision of the state other than a] municipality; and (2) prepare a quarterly report concerning such goal achievement. The report shall be submitted to each state or quasi-public agency or municipality that submitted a report, the Commissioner of Economic and Community Development, the Commissioner of Administrative Services and the cochairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and government administration. [and elections.] Failure by any state or quasi-public agency or [political subdivision of the state other than a] municipality to submit any reports required by this section shall be a violation of section 46a-77.
Sec. 4. Section 46a-68b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
As used in this section and sections 4a-60, 4a-60a, [4a-60g,] 4a-62, 46a-56 and 46a-68c to 46a-68k, inclusive: "Public works contract" means any agreement between any individual, firm or corporation and the state or any political subdivision of the state other than a municipality for construction, rehabilitation, conversion, extension, demolition or repair of a public building, highway or other changes or improvements in real property, or which is financed in whole or in part by the state, including, but not limited to, matching expenditures, grants, loans, insurance or guarantees.
Sec. 5. Section 7-148u of the general statutes is repealed. (Effective October 1, 2015)
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2015 4a-60g(a) to (d)
Sec. 2 October 1, 2015 4a-60g(h)
Sec. 3 October 1, 2015 4a-60g(l) and (m)
Sec. 4 October 1, 2015 46a-68b
Sec. 5 October 1, 2015 Repealer section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2015
4a-60g(a) to (d)
Sec. 2
October 1, 2015
4a-60g(h)
Sec. 3
October 1, 2015
4a-60g(l) and (m)
Sec. 4
October 1, 2015
46a-68b
Sec. 5
October 1, 2015
Repealer section
Statement of Purpose:
To expand the set-aside program to include certain municipal projects and purchases.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]
Co-Sponsors: REP. MORRIS, 140th Dist.; REP. SANTIAGO, 84th Dist. SEN. MOORE, 22nd Dist.; REP. STALLWORTH, 126th Dist. REP. PORTER, 94th Dist.; REP. VARGAS, 6th Dist. REP. MILLER P., 145th Dist.; REP. CUEVAS, 75th Dist. SEN. COLEMAN, 2nd Dist.; REP. ADAMS, 146th Dist.
Co-Sponsors:
REP. MORRIS, 140th Dist.; REP. SANTIAGO, 84th Dist.
SEN. MOORE, 22nd Dist.; REP. STALLWORTH, 126th Dist.
REP. PORTER, 94th Dist.; REP. VARGAS, 6th Dist.
REP. MILLER P., 145th Dist.; REP. CUEVAS, 75th Dist.
SEN. COLEMAN, 2nd Dist.; REP. ADAMS, 146th Dist.
H.B. 6086