Connecticut 2017 Regular Session

Connecticut House Bill HB07236 Compare Versions

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1-General Assembly Substitute Bill No. 7236
2-January Session, 2017 *_____HB07236HED___031717____*
1+General Assembly Raised Bill No. 7236
2+January Session, 2017 LCO No. 4758
3+ *04758_______HED*
4+Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT
5+Introduced by:
6+(HED)
37
48 General Assembly
59
6-Substitute Bill No. 7236
10+Raised Bill No. 7236
711
812 January Session, 2017
913
10-*_____HB07236HED___031717____*
14+LCO No. 4758
1115
12-AN ACT CONCERNING A STUDY TO EXPAND CONTRACT POLICIES AT THE UNIVERSITY OF CONNECTICUT.
16+*04758_______HED*
17+
18+Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT
19+
20+Introduced by:
21+
22+(HED)
23+
24+AN ACT CONCERNING THE EXPANSION OF CONTRACT POLICIES AT THE UNIVERSITY OF CONNECTICUT.
1325
1426 Be it enacted by the Senate and House of Representatives in General Assembly convened:
1527
16-Section 1. (Effective July 1, 2017) Not later than July 1, 2018, The University of Connecticut shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to higher education and employment advancement. Such report shall include an analysis of the feasibility of removing existing statutory contracting requirements that limit The University of Connecticut's ability to enter into contracts with public and private entities.
28+Section 1. (NEW) (Effective July 1, 2017) (a) For any contract entered into or amended on or after January 1, 2018, The University of Connecticut and The University of Connecticut Health Center shall be exempt from the provisions of section 10a-151b of the general statutes, as amended by this act, and chapter 62 of the general statutes.
29+
30+(b) Not later than January 1, 2018, the Board of Trustees for The University of Connecticut and the Board of Directors for The University of Connecticut Health Center shall establish policies and guidelines that (1) establish an alternative competitive bidding and competitive negotiation process, (2) permit The University of Connecticut and The University of Connecticut Health Center to enter into contracts that generate revenue, and (3) establish a cost-benefit analysis and contracting process that eliminates or transfers institutional activities to government or private entities. Each board shall consider the anticipated value of the contract, the number and nature of potential sources and the time and cost of the contract processes.
31+
32+(c) The policies and guidelines established by each board pursuant to subsection (b) of this section shall not be deemed to be regulations, as defined in section 4-166 of the general statutes, provided they are promulgated after reasonable opportunity has been provided for interested persons to present their views and, provided further, that such policies and guidelines remain subject to the provisions of section 4-175 of the general statutes.
33+
34+(d) The accounts of The University of Connecticut and The University of Connecticut Health Center shall be subject to audit by the state Auditors of Public Accounts based on the policies and guidelines established in accordance with subsection (a) of this section.
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36+(e) Not later than January 1, 2019, and annually thereafter, each board shall submit a report that includes the policies and guidelines established by the board pursuant to subsection (b) of this section, and expenditures and revenues generated as a result of such policies and guidelines, to the joint standing committees of the General Assembly having cognizance of matters relating to higher education and employment advancement and appropriations, in accordance with the provisions of section 11-4a of the general statutes.
37+
38+(f) Nothing in this section shall be construed to affect the authority of the Attorney General.
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40+(g) Nothing in this section shall exempt the Board of Trustees for The University of Connecticut and the Board of Directors for The University of Connecticut Health Center from complying with the provisions of section 10a-109n of the general statutes.
41+
42+Sec. 2. Section 4e-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
43+
44+For the purposes of sections 4e-1 to 4e-47, inclusive, as amended by this act:
45+
46+(1) "Best value selection" means a contract selection process in which the award of a contract is based on a combination of quality, timeliness and cost factors;
47+
48+(2) "Bid" means an offer, submitted in response to an invitation to bid, to furnish supplies, materials, equipment, construction or contractual services to a state contracting agency under prescribed conditions at a stated price;
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50+(3) "Bidder" means a business submitting a bid in response to an invitation to bid by a state contracting agency;
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52+(4) "Business" means any individual or sole proprietorship, partnership, firm, corporation, trust, limited liability company, limited liability partnership, joint stock company, joint venture, association or other legal entity through which business for profit or not-for-profit is conducted;
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54+(5) "Competitive bidding" means the submission of prices by a business competing for a contract to provide supplies, materials, equipment or contractual services to a state contracting agency, under a procedure in which the contracting authority does not negotiate prices, as set forth in statutes and regulations concerning procurement;
55+
56+(6) "Consultant" means (A) any architect, professional engineer, landscape architect, land surveyor, accountant, interior designer, environmental professional or construction administrator, who is registered or licensed to practice such person's profession in accordance with the applicable provisions of the general statutes, (B) any planner or any environmental, management or financial specialist, or (C) any person who performs professional work in areas including, but not limited to, educational services, medical services, information technology and real estate appraisal;
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58+(7) "Consultant services" means those professional services rendered by a consultant and any incidental services that a consultant and those in the consultant's employ are authorized to perform;
59+
60+(8) "Contract" or "state contract" means an agreement or a combination or series of agreements between a state contracting agency or quasi-public agency and a business for:
61+
62+(A) A project for the construction, reconstruction, alteration, remodeling, repair or demolition of any public building, public work, mass transit, rail station, parking garage, rail track or airport;
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64+(B) Services, including, but not limited to, consultant and professional services;
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66+(C) The acquisition or disposition of personal property;
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68+(D) The provision of goods and services, including, but not limited to, the use of purchase of services contracts and personal service agreements;
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70+(E) The provision of information technology, state agency information system or telecommunication system facilities, equipment or services;
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72+(F) A lease; or
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74+(G) A licensing agreement;
75+
76+"Contract" or "state contract" does not include a contract between a state agency or a quasi-public agency and a political subdivision of the state;
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78+(9) "Term contract" means the agreement reached when the state accepts a bid or proposal to furnish supplies, materials, equipment or contractual services at a stated price for a specific period of time in response to an invitation to bid;
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80+(10) "Contract risk assessment" means (A) the identification and evaluation of loss exposures and risks, including, but not limited to, business and legal risks associated with the contracting process and the contracted goods and services, and (B) the identification, evaluation and implementation of measures available to minimize potential loss exposures and risks;
81+
82+(11) "Contractor" means any business that is awarded, or is a subcontractor under, a contract or an amendment to a contract with a state contracting agency under statutes and regulations concerning procurement, including, but not limited to, a small contractor, minority business enterprise, an individual with a disability, as defined in section 4a-60, or an organization providing products and services by persons with disabilities;
83+
84+(12) "Contractual services" means the furnishing of labor by a contractor, not involving the delivery of a specific end product other than reports, which are merely incidental to the required performance and includes any and all laundry and cleaning service, pest control service, janitorial service, security service, the rental and repair, or maintenance, of equipment, machinery and other state-owned personal property, advertising and photostating, mimeographing, human services and other service arrangements where the services are provided by persons other than state employees. "Contractual services" includes the design, development and implementation of technology, communications or telecommunications systems or the infrastructure pertaining thereto, including hardware and software and services for which a contractor is conferred a benefit by the state, whether or not compensated by the state. "Contractual services" does not include employment agreements or collective bargaining agreements;
85+
86+(13) "Data" means recorded information, regardless of form or characteristic;
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88+(14) "Vote of two-thirds of the members of the board present and voting" means a vote by the State Contracting Standards Board that is agreed upon by two-thirds of the members of the State Contracting Standards Board present and voting for a particular purpose and that includes the vote of one member of the board appointed by a legislative leader;
89+
90+(15) "Electronic" means electrical, digital, magnetic, optical, electromagnetic, or any other similar technology;
91+
92+(16) "Emergency procurement" means procurement by a state contracting agency, quasi-public agency, as defined in section 1-120, judicial department or [constituent unit of higher education] the Connecticut State Colleges and Universities that is made necessary by a sudden, unexpected occurrence that poses a clear and imminent danger to public safety or requires immediate action to prevent or mitigate the loss or impairment of life, health, property or essential public services or in response to a court order, settlement agreement or other similar legal judgment;
93+
94+(17) "Equipment" means personal property of a durable nature that retains its identity throughout its useful life;
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96+(18) "Materials" means items required to perform a function or used in a manufacturing process, particularly those incorporated into an end product or consumed in its manufacture;
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98+(19) "Nonprofit agency" means any organization that is not a for-profit business under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, makes no distribution to its members, directors or officers and provides services contracted for by (A) the state, or (B) a nonstate entity;
99+
100+(20) "Professional services" means any type of service to the public that requires that members of a profession rendering such service obtain a license or other legal authorization as a condition precedent to the rendition thereof, including, but not limited to, the professional services of architects, professional engineers, or jointly by architects and professional engineers, landscape architects, certified public accountants and public accountants, land surveyors, attorneys-at-law, psychologists, licensed marital and family therapists, licensed professional counselors and licensed clinical social workers as well as such other professional services described in section 33-182a;
101+
102+(21) "Privatization contract" means an agreement or series of agreements between a state contracting agency and a person or entity in which such person or entity agrees to provide services that are substantially similar to and in lieu of services provided, in whole or in part, by state employees, other than contracts with a nonprofit agency, which are in effect as of January 1, 2009, and which through a renewal, modification, extension or rebidding of contracts continue to be provided by a nonprofit agency;
103+
104+(22) "Procurement" means contracting for, buying, purchasing, renting, leasing or otherwise acquiring or disposing of, any supplies, services, including but not limited to, contracts for purchase of services and personal service agreements, interest in real property, or construction, and includes all government functions that relate to such activities, including best value selection and qualification based selection;
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106+(23) "Proposer" means a business submitting a proposal to a state contracting agency in response to a request for proposals or other competitive sealed proposal;
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108+(24) "Public record" means a public record, as defined in section 1-200;
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110+(25) "Qualification based selection" means a contract selection process in which the award of a contract is primarily based on an assessment of contractor qualifications and on the negotiation of a fair and reasonable price;
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112+(26) "Regulation" means regulation, as defined in section 4-166;
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114+(27) "Request for proposals" means all documents, whether attached or incorporated by reference, utilized for soliciting proposals;
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116+(28) "State contracting agency" means any executive branch agency, board, commission, department, office, institution or council. "State contracting agency" does not include the judicial branch, the legislative branch, the offices of the Secretary of the State, the State Comptroller, the Attorney General, the State Treasurer, with respect to their constitutional functions, any state agency with respect to contracts specific to the constitutional and statutory functions of the office of the State Treasurer. For the purposes of section 4e-16, "state contracting agency" includes [any constituent unit of the state system of higher education] the Connecticut State Colleges and Universities and for the purposes of section 4e-19, "state contracting agency" includes the State Education Resource Center, established under section 10-4q;
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118+(29) "Subcontractor" means a subcontractor of a contractor for work under a contract or an amendment to a contract;
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120+(30) "Supplies" means any and all articles of personal property, including, but not limited to, equipment, materials, printing, insurance and leases of real property, excluding land or a permanent interest in land furnished to or used by any state agency;
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122+(31) "Infrastructure facility" means a building, structure or network of buildings, structures, pipes, controls and equipment that provide transportation, utilities, public education or public safety services. Infrastructure facility includes government office buildings, public schools, jails, water treatment plants, distribution systems and pumping stations, wastewater treatment plants, collections systems and pumping stations, solid waste disposal plants, incinerators, landfills, and related facilities, public roads and streets, highways, public parking facilities, public transportation systems, terminals and rolling stock, rail, air and water port structures, terminals and equipment; and
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124+(32) "State employee" means state employee, as defined in section 5-154 and, for purposes of section 4e-16, state employee includes an employee of any state contracting agency.
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126+Sec. 3. Section 4e-13 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
127+
128+(a) The Department of Administrative Services, in consultation with the State Contracting Standards Board, shall establish and maintain a single electronic portal available on the Internet and located on the Department of Administrative Services' web site for purposes of posting all contracting opportunities with state agencies in the executive branch, the [constituent units of the state system of higher education] Connecticut State Colleges and Universities and quasi-public agencies. Such electronic portal shall be known as the State Contracting Portal.
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130+(b) The State Contracting Portal shall, among other things, include: (1) All requests for bids or proposals, and other solicitations regardless of the method of source selection, related materials and all resulting contracts and agreements by state agencies; (2) a searchable database for locating information; (3) personal services agreements and purchase of service agreements; (4) a state procurement and contract manual or other similar information designated by the Department of Administrative Services as describing approved contracting processes and procedures; and (5) prominent features to encourage the active recruitment and participation of small businesses and women and minority-owned enterprises in the state contracting process.
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132+(c) All state agencies in the executive branch, the [constituent units of the state system of higher education] Connecticut State Colleges and Universities and quasi-public agencies shall post all bids, requests for proposals and all resulting contracts and agreements on the State Contracting Portal and shall, with the assistance of the Department of Administrative Services as needed, develop the infrastructure and capability to electronically communicate with the State Contracting Portal.
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134+(d) All state agencies in the executive branch, the [constituent units of the state system of higher education] Connecticut State Colleges and Universities and quasi-public agencies shall develop written policies and procedures to ensure that information is posted to the State Contracting Portal in a timely, complete and accurate manner consistent with the highest legal and ethical standards of state government.
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136+(e) The Department of Administrative Services shall periodically report to the Governor and the State Contracting Standards Board on the progress of all state agencies in the executive branch, the [constituent units of the state system higher education] Connecticut State Colleges and Universities and quasi-public agencies, in developing the capacity, infrastructure, policies and procedures to electronically communicate with the State Contracting Portal and the Department of Administrative Services' progress toward establishment and maintenance of the State Contracting Portal.
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138+Sec. 4. Section 4e-47 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
139+
140+On or after January 1, 2011, the State Contracting Standards Board shall adopt regulations, in accordance with the provisions of chapter 54, to apply the contracting procedures, as described in sections 4e-18 to 4e-45, inclusive, [to each constituent unit of the state system of higher education] of the Connecticut State Colleges and Universities. Such regulations shall take into consideration circumstances and factors that are unique to such constituent units.
141+
142+Sec. 5. Section 10a-151b of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
143+
144+(a) Notwithstanding the provisions of chapter 58, and sections 4-98, 4a-4, 4a-5, 4a-6, 4d-2, and 4d-5 to the contrary, a chief executive officer may purchase equipment, supplies and contractual services, execute personal service agreements, as defined in section 4-212, or lease personal property compatible, where relevant, with standards for computer architecture established by the Department of Administrative Services, without the approval of the Comptroller, the Secretary of the Office of Policy and Management or the Commissioner of Administrative Services, provided the chief executive officer consults with the commissioner and such purchases are made in accordance with this section and in accordance with policies which are (1) adopted by the board of trustees of the constituent unit after reasonable opportunity for interested persons to present their views, and (2) subject to section 4-175. For purposes of this section, "chief executive officer" means the chief executive officer of a constituent unit of the state system of higher education or the chief executive officer of an institution within the jurisdiction of such a constituent unit. "Chief executive officer" does not include the Board of Trustees of The University of Connecticut or the Board of Directors for The University of Connecticut Health Center. The provisions of sections 4-212 to 4-219, inclusive, and section 9 of public act 93-336 shall not apply to personal service agreements executed pursuant to this section.
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146+(b) Purchases made pursuant to this section shall be based, when possible, on competitive bids or competitive negotiation. Such chief executive officer shall solicit competitive bids or proposals by sending notice to prospective suppliers and by posting notice on a public bulletin board in such officer's office. Such notice shall contain a notice of state contract requirements pursuant to section 4a-60. Each bid or proposal shall be kept sealed until opened publicly at the time stated in the notice soliciting such bid or proposal. Sealed bids or proposals shall include bids or proposals sealed within an envelope or maintained within a safe and secure electronic environment until such time as they are publicly opened. If the amount of the expenditure is estimated to exceed fifty thousand dollars, not later than five calendar days before the final date of submitting competitive bids or proposals, competitive bids or proposals shall be solicited by public notice posted on the Internet. All purchases fifty thousand dollars or less in amount shall be made in the open market, but shall, when possible, be based on at least three competitive quotations. If desired by the [constituent unit] chief executive officer, competitive quotations may include quotations submitted to the constituent unit within a safe and secure electronic environment. The constituent unit shall not refuse to consider a bid, proposal or quotation because it is not submitted electronically.
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148+(c) Notwithstanding the provisions of subsection (b) of this section, competitive bidding or competitive negotiation is not required in the case of (1) minor purchases of ten thousand dollars or less in amount, (2) purchases made pursuant to subsection (k) of this section, (3) emergency purchases, or (4) agricultural purchases of dairy products, poultry, farm-raised seafood, beef, pork, lamb, eggs, fruits, vegetables or other farm products in an amount of fifty thousand dollars or less. Whenever an emergency exists by reason of extraordinary conditions or contingencies that could not reasonably be foreseen and guarded against, or because of unusual trade or market conditions, the chief executive officer may, if it is for the best interest of the state, make purchases without competitive bidding. A statement of all emergency purchases made under the provisions of this subsection shall be set forth in the annual report of the chief executive officer. The chief executive officer, when making an agricultural purchase in accordance with subdivision (4) of this subsection, shall give preference to dairy products, poultry, farm-raised seafood, beef, pork, lamb, eggs, fruits, vegetables or other farm products grown or produced in this state when such products, poultry, farm-raised seafood, beef, pork, lamb, eggs, fruits or vegetables are comparable in cost to other dairy products, poultry, eggs, fruits or vegetables being considered for purchase by the chief executive officer that have not been grown or produced in this state.
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150+(d) Nothing in this section shall exempt a constituent unit or chief executive officer from complying with the provisions of sections 4a-60 and 4a-61.
151+
152+(e) No person, firm or corporation disqualified pursuant to section 4a-52a, or by the Commissioner of Administrative Services pursuant to section 4a-63 from bidding on contracts with the Department of Administrative Services may bid pursuant to this section.
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154+(f) A chief executive officer who enters into a contract under this section that fails to meet the requirements of this section shall be personally liable for the costs of such contract and such contract shall be void and of no effect. Any amount paid under such contract may be recovered from such chief executive officer by the state in a civil action.
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156+(g) Nothing in this section shall be construed to prevent a chief executive officer from participating in a contract for the purchase of equipment, supplies or services with the Department of Administrative Services pursuant to chapter 58.
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158+(h) Nothing in this section shall be construed to prevent a constituent unit from entering into a corporate sponsorship agreement which contains provisions for the barter of goods and services, provided such agreement is entered into in accordance with policies and procedures governing such agreements adopted pursuant to subsection (a) of this section.
159+
160+(i) For the period from July 1, 2002, to June 30, 2006, inclusive, any funds or revenues collected from ticket sales by the contractor hired by Western Connecticut State University to operate and manage its O'Neill Center, shall not be deemed to be state funds for the purposes of sections 4-32 and 4-33 and may be deposited in the contractor's account for a period of time not to exceed forty days, during which time the contractor shall pay all expenses related to the event for which the tickets were sold and make an accounting of the portion of the funds to be remitted to the university, and then remit such funds to the university pursuant to the terms of the contract. Upon receipt of such funds, the university shall deposit such funds in accordance with the provisions of sections 4-32 and 4-33.
161+
162+(j) Notwithstanding the provisions of subsections (a) and (b) of this section, a chief executive officer may not extend a contract with a value of fifty thousand dollars or more per year to perform janitorial, building maintenance, security or food and beverage services unless: (1) Such contract is in effect on May 1, 2005; (2) such extension is for a period of one year from the date such contract would otherwise expire; and (3) any such extension includes any applicable increase in the standard wage and the payroll burden to administer the standard wage, as established by the Labor Department.
163+
164+(k) The chief executive officer of a constituent unit may purchase, or make expenditures related to the development of, any technology, product or process for the purpose of testing such technology, product or process in the operation of the constituent unit on a trial basis, if (1) such technology, product or process (A) is part of or related to a research program at the constituent unit, (B) has the potential, as determined by the chief executive officer, to provide economic benefit to the state, (C) will not adversely affect the safety of any individual, and (D) has potential for commercialization, and (2) the chief executive officer has received a recommendation to test such technology, product or process from a constituent unit committee whose membership includes the chief purchasing official, the chief academic officer and the chief economic development officer for the constituent unit, or their designees.
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166+(l) The chief executive officer of a constituent unit that purchases or makes expenditures related to the development of any technology, product or process for the purpose of testing such technology, product or process in the operation of the constituent unit on a trial basis, pursuant to subsection (k) of this section, shall, not later than January first of the year following such purchase or expenditure, submit a report, on the number of times such constituent unit tested such technology, product or process during the last twelve months, or if such tests are not complete, will test such technology, product or process in the next twelve months, to the joint standing committees of the General Assembly having cognizance of matters relating to higher education and commerce, in accordance with section 11-4a.
167+
168+(m) The chief executive officer of a constituent unit may join with a federal agency, another state government, political subdivision of this state or private or nonprofit organization in a cooperative purchasing plan when the best interests of the state would be served by such plan.
169+
170+(n) The state, through the chief executive officer of a constituent unit, may purchase equipment, supplies, materials and services from a person who has a contract to sell such property or services to another state government, political subdivision of this state, nonprofit organization or private or public purchasing consortium, in accordance with the terms and conditions of such contract.
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21175 This act shall take effect as follows and shall amend the following sections:
22176 Section 1 July 1, 2017 New section
177+Sec. 2 January 1, 2018 4e-1
178+Sec. 3 January 1, 2018 4e-13
179+Sec. 4 January 1, 2018 4e-47
180+Sec. 5 January 1, 2018 10a-151b
23181
24182 This act shall take effect as follows and shall amend the following sections:
25183
26184 Section 1
27185
28186 July 1, 2017
29187
30188 New section
31189
190+Sec. 2
32191
192+January 1, 2018
33193
34-HED Joint Favorable Subst.
194+4e-1
35195
36-HED
196+Sec. 3
37197
38-Joint Favorable Subst.
198+January 1, 2018
199+
200+4e-13
201+
202+Sec. 4
203+
204+January 1, 2018
205+
206+4e-47
207+
208+Sec. 5
209+
210+January 1, 2018
211+
212+10a-151b
213+
214+Statement of Purpose:
215+
216+To allow The University of Connecticut to expand its contracting ability.
217+
218+[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.]