Connecticut 2019 Regular Session

Connecticut Senate Bill SB00862 Compare Versions

Only one version of the bill is available at this time.

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4	4	LCO No. 3795 1 of 11
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6	6	General Assembly Raised Bill No. 862
7	7	January Session, 2019
8	8	LCO No. 3795
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11	11	Referred to Committee on VETERANS' AFFAIRS
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13	13
14	14	Introduced by:
15	15	(VA)
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20	20	AN ACT CONCERNING VE TERAN-OWNED BUSINESSES IN STATE
21	21	CONTRACTING.
22	22	Be it enacted by the Senate and House of Representatives in General
23	23	Assembly convened:
24	24
25	25	Section 1. Subsection (c) of section 4a-59 of the general statutes is 1
26	26	repealed and the following is substituted in lieu thereof (Effective 2
27	27	October 1, 2019): 3
28	28	(c) All open market orders or contracts shall be awarded to (1) the 4
29	29	lowest responsible qualified bidder, the qualities of the articles to be 5
30	30	supplied, their conformity with the specifications, their suitability to 6
31	31	the requirements of the state government and the delivery terms being 7
32	32	taken into consideration and, at the discretion of the Commissioner of 8
33	33	Administrative Services, life-cycle costs and trade-in or resale value of 9
34	34	the articles may be considered where it appears to be in the best 10
35	35	interest of the state, (2) the highest scoring bidder in a multiple criteria 11
36	36	bid, in accordance with the criteria set forth in the bid solicitation for 12
37	37	the contract, or (3) the proposer whose proposal is deemed by the 13
38	38	awarding authority to be the most advantageous to the state, in 14
39	39	accordance with the criteria set forth in the request for proposals, 15 Raised Bill No. 862
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41	41
42	42
43	43	LCO No. 3795 2 of 11
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45	45	including price and evaluation factors. Notwithstanding any provision 16
46	46	of the general statutes to the contrary, each state agency awarding a 17
47	47	contract through competitive negotiation shall include price as an 18
48	48	explicit factor in the criteria in the request for proposals and for the 19
49	49	contract award. In considering past performance of a bidder for the 20
50	50	purpose of determining the "lowest responsible qualified bidder" or 21
51	51	the "highest scoring bidder in a multiple criteria bid", the 22
52	52	commissioner shall evaluate the skill, ability and integrity of the 23
53	53	bidder in terms of the bidder's fulfillment of past contract obligations 24
54	54	and the bidder's experience or lack of experience in delivering 25
55	55	supplies, materials, equipment or contractual services of the size or 26
56	56	amount for which bids have been solicited. In determining the lowest 27
57	57	responsible qualified bidder for the purposes of this section, the 28
58	58	commissioner may give a price preference of up to ten per cent for (A) 29
59	59	the purchase of goods made with recycled materials or the purchase of 30
60	60	recyclable or remanufactured products if the commissioner determines 31
61	61	that such preference would promote recycling or remanufacturing. As 32
62	62	used in this subsection, "recyclable" means able to be collected, 33
63	63	separated or otherwise recovered from the solid waste stream for 34
64	64	reuse, or for use in the manufacture or assembly of another package or 35
65	65	product, by means of a recycling program which is reasonably 36
66	66	available to at least seventy-five per cent of the state's population, 37
67	67	"remanufactured" means restored to its original function and thereby 38
68	68	diverted from the solid waste stream by retaining the bulk of 39
69	69	components that have been used at least once and by replacing 40
70	70	consumable components and "remanufacturing" means any process by 41
71	71	which a product is remanufactured; (B) the purchase of motor vehicles 42
72	72	powered by a clean alternative fuel; (C) the purchase of motor vehicles 43
73	73	powered by fuel other than a clean alternative fuel and conversion 44
74	74	equipment to convert such motor vehicles allowing the vehicles to be 45
75	75	powered by either the exclusive use of clean alternative fuel or dual 46
76	76	use of a clean alternative fuel and a fuel other than a clean alternative 47
77	77	fuel. As used in this subsection, "clean alternative fuel" means natural 48
78	78	gas, electricity, hydrogen or propane when used as a motor vehicle 49
79	79	fuel; or (D) the purchase of goods or services from a micro business, 50 Raised Bill No. 862
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83	83	LCO No. 3795 3 of 11
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85	85	except that, in the case of a veteran-owned micro business, the 51
86	86	commissioner may give a price preference of up to fifteen per cent. 52
87	87	Additionally, in determining the lowest responsible qualified bidder 53
88	88	for the purposes of this section, the commissioner shall give a price 54
89	89	preference of ten per cent for the purchase of goods or services from a 55
90	90	veteran-owned business. As used in this subsection, "micro business" 56
91	91	means a business with gross revenues not exceeding three million 57
92	92	dollars in the most recently completed fiscal year, ["veteran-owned 58
93	93	micro business"] "veteran-owned" means [a micro business of which] 59
94	94	at least fifty-one per cent of [the] ownership is held by one or more 60
95	95	veterans and "veteran" means any person (i) honorably discharged 61
96	96	from, or released under honorable conditions from active service in, 62
97	97	the armed forces, as defined in section 27-103, or (ii) with a qualifying 63
98	98	condition, as defined in said section, who has received a discharge 64
99	99	other than bad conduct or dishonorable from active service in the 65
100	100	armed forces. All other factors being equal, preference shall be given to 66
101	101	supplies, materials and equipment produced, assembled or 67
102	102	manufactured in the state and services originating and provided in the 68
103	103	state. Except with regard to contracts that may be paid for with United 69
104	104	States Department of Transportation funds, if any such bidder refuses 70
105	105	to accept, within ten days, a contract awarded to such bidder, such 71
106	106	contract may be awarded to the next lowest responsible qualified 72
107	107	bidder or the next highest scoring bidder in a multiple criteria bid, 73
108	108	whichever is applicable, and so on until such contract is awarded and 74
109	109	accepted. Except with regard to contracts that may be paid for with 75
110	110	United States Department of Transportation funds, if any such 76
111	111	proposer refuses to accept, within ten days, a contract awarded to such 77
112	112	proposer, such contract shall be awarded to the next most 78
113	113	advantageous proposer, and so on until the contract is awarded and 79
114	114	accepted. There shall be a written evaluation made of each bid. This 80
115	115	evaluation shall identify the vendors and their respective costs and 81
116	116	prices, document the reason why any vendor is deemed to be 82
117	117	nonresponsive and recommend a vendor for award. A contract valued 83
118	118	at one million dollars or more shall be awarded to a bidder other than 84
119	119	the lowest responsible qualified bidder or the highest scoring bidder in 85 Raised Bill No. 862
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123	123	LCO No. 3795 4 of 11
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125	125	a multiple criteria bid, whichever is applicable, only with written 86
126	126	approval signed by the Commissioner of Administrative Services and 87
127	127	by the Comptroller. The commissioner shall post on the department's 88
128	128	Internet web site all awards made pursuant to the provisions of this 89
129	129	section. 90
130	130	Sec. 2. Subsection (a) of section 4a-60g of the general statutes is 91
131	131	amended by adding subdivisions (16) and (17) as follows (Effective 92
132	132	October 1, 2019): 93
133	133	(NEW) (16) "Veteran-owned contractor" means any contractor, 94
134	134	subcontractor, manufacturer, service company or nonprofit 95
135	135	corporation of which at least fifty-one per cent of the ownership is held 96
136	136	by one or more veterans. 97
137	137	(NEW) (17) "Veteran" means any person (A) honorably discharged 98
138	138	from, or released under honorable conditions from active service in, 99
139	139	the armed forces, as defined in section 27-103, or (B) with a qualifying 100
140	140	condition, as defined in said section, who has received a discharge 101
141	141	other than bad conduct or dishonorable from active service in the 102
142	142	armed forces. 103
143	143	Sec. 3. Subdivision (2) of subsection (b) of section 4a-60g of the 104
144	144	general statutes is repealed and the following is substituted in lieu 105
145	145	thereof (Effective October 1, 2019): 106
146	146	(2) (A) Notwithstanding any provisions of the general statutes, and 107
147	147	except as set forth in this section, the head of each awarding agency 108
148	148	shall set aside in each fiscal year, for award to small contractors, on the 109
149	149	basis of competitive bidding procedures, contracts or portions of 110
150	150	contracts for the construction, reconstruction or rehabilitation of public 111
151	151	buildings, the construction and maintenance of highways and the 112
152	152	purchase of goods and services. The total value of such contracts or 113
153	153	portions thereof to be set aside by each such agency shall be at least 114
154	154	twenty-five per cent of the total value of all contracts let by the head of 115
155	155	such agency in each fiscal year, provided a contract for any goods or 116
156	156	services which have been determined by the Commissioner of 117 Raised Bill No. 862
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160	160	LCO No. 3795 5 of 11
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162	162	Administrative Services to be not customarily available from or 118
163	163	supplied by small contractors shall not be included. Contracts or 119
164	164	portions thereof having a value of not less than twenty-five per cent of 120
165	165	the total value of all contracts or portions thereof to be set aside shall 121
166	166	be reserved for awards to minority business enterprises. 122
167	167	(B) Notwithstanding any provisions of the general statutes, and 123
168	168	except as set forth in this section, the head of each awarding agency 124
169	169	shall set aside in each fiscal year, for award to veteran-owned 125
170	170	contractors, on the basis of competitive bidding procedures, contracts 126
171	171	or portions of contracts for the construction, reconstruction or 127
172	172	rehabilitation of public buildings, the construction and maintenance of 128
173	173	highways and the purchase of goods and services. The total value of 129
174	174	such contracts or portions thereof to be set aside by each such agency 130
175	175	shall be five per cent of the total value of all contracts let by the head of 131
176	176	such agency in each fiscal year, provided a contract for any goods or 132
177	177	services which have been determined by the Commissioner of 133
178	178	Administrative Services to be not customarily available from or 134
179	179	supplied by veteran-owned contractors shall not be included. 135
180	180	Sec. 4. Subsection (e) of section 4a-60g of the general statutes is 136
181	181	repealed and the following is substituted in lieu thereof (Effective 137
182	182	October 1, 2019): 138
183	183	(e) The awarding authority shall require that a contractor or 139
184	184	subcontractor awarded a contract or a portion of a contract under this 140
185	185	section perform not less than thirty per cent of the work with the 141
186	186	workforces of such contractor or subcontractor and shall require that 142
187	187	not less than fifty per cent of the work be performed by contractors or 143
188	188	subcontractors eligible for awards under this section. A contractor 144
189	189	awarded a contract or a portion of a contract under this section shall 145
190	190	not subcontract with any person with whom the contractor is affiliated. 146
191	191	No person who is affiliated with another person shall be eligible for 147
192	192	awards under this section if both affiliated persons considered together 148
193	193	would not qualify as [a small contractor or a minority business 149
194	194	enterprise under subsection (a) of this section.] a small contractor, 150 Raised Bill No. 862
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197	197
198	198	LCO No. 3795 6 of 11
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200	200	minority business enterprise or veteran-owned contractor under 151
201	201	subsection (a) of this section. The awarding authority shall require that 152
202	202	a contractor awarded a contract pursuant to this section submit, in 153
203	203	writing, an explanation of any subcontract to such contract that is 154
204	204	entered into with any person that is not eligible for the award of a 155
205	205	contract pursuant to this section, prior to the performance of any work 156
206	206	pursuant to such subcontract. 157
207	207	Sec. 5. Subsection (g) of section 4a-60g of the general statutes is 158
208	208	repealed and the following is substituted in lieu thereof (Effective 159
209	209	October 1, 2019): 160
210	210	(g) The awarding authority or the Commissioner of Administrative 161
211	211	Services or the Commission on Human Rights and Opportunities may 162
212	212	conduct an audit of the financial, corporate and business records and 163
213	213	conduct an investigation of any [small contractor or minority business 164
214	214	enterprise which] small contractor, minority business enterprise or 165
215	215	veteran-owned contractor that applies for or is awarded a set-aside 166
216	216	contract for the purpose of determining eligibility for awards or 167
217	217	compliance with the requirements established under this section. 168
218	218	Sec. 6. Subdivision (1) of subsection (k) of section 4a-60g of the 169
219	219	general statutes is repealed and the following is substituted in lieu 170
220	220	thereof (Effective October 1, 2019): 171
221	221	(k) (1) (A) On or before January 1, 2000, the Commissioner of 172
222	222	Administrative Services shall establish a process for certification of 173
223	223	small contractors and minority business enterprises as eligible for set-174
224	224	aside contracts. Each certification shall be valid for a period not to 175
225	225	exceed two years, unless the Commissioner of Administrative Services 176
226	226	determines that an extension of such certification is warranted, 177
227	227	provided any such extension shall not exceed a period of six months 178
228	228	from such certification's original expiration date. Any paper 179
229	229	application for certification shall be no longer than six pages. The 180
230	230	Department of Administrative Services shall maintain on its web site 181
231	231	an updated directory of small contractors and minority business 182 Raised Bill No. 862
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235	235	LCO No. 3795 7 of 11
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237	237	enterprises certified under this section. 183
238	238	(B) On or before January 1, 2020 , the Commissioner of 184
239	239	Administrative Services shall establish a process for certification of 185
240	240	veteran-owned contractors as eligible for set-aside contracts. Each 186
241	241	certification shall be valid for a period not to exceed two years, unless 187
242	242	the Commissioner of Administrative Services determines that an 188
243	243	extension of such certification is warranted, provided any such 189
244	244	extension shall not exceed a period of six months from such 190
245	245	certification's original expiration date. Any paper application for 191
246	246	certification shall be no longer than six pages. The Department of 192
247	247	Administrative Services shall maintain on its web site an updated 193
248	248	directory of veteran-owned contractors certified under this section. 194
249	249	Sec. 7. Subdivision (3) of subsection (k) of section 4a-60g of the 195
250	250	general statutes is repealed and the following is substituted in lieu 196
251	251	thereof (Effective October 1, 2019): 197
252	252	(3) Whenever the Commissioner of Administrative Services has 198
253	253	reason to believe that [a small contractor or minority business 199
254	254	enterprise] a small contractor, minority business enterprise or veteran-200
255	255	owned contractor who has applied for or received certification under 201
256	256	this section has included a materially false statement in his or her 202
257	257	application, the commissioner may impose a penalty not exceeding ten 203
258	258	thousand dollars after notice and a hearing held in accordance with 204
259	259	chapter 54. Such notice shall include (A) a reference to the statement or 205
260	260	statements contained in the application alleged to be false, (B) the 206
261	261	maximum civil penalty that may be imposed for such 207
262	262	misrepresentation, and (C) the time and place of the hearing. Such 208
263	263	hearing shall be fixed for a date not later than fourteen days from the 209
264	264	date such notice is sent. The commissioner shall send a copy of such 210
265	265	notice to the Commission on Human Rights and Opportunities. 211
266	266	Sec. 8. Subsection (l) of section 4a-60g of the general statutes is 212
267	267	repealed and the following is substituted in lieu thereof (Effective 213
268	268	October 1, 2019): 214 Raised Bill No. 862
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272	272	LCO No. 3795 8 of 11
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274	274	(l) On or before August thirtieth of each year, each awarding agency 215
275	275	setting aside contracts or portions of contracts under subdivision (2) of 216
276	276	subsection (b) of this section shall prepare a report establishing [small 217
277	277	and minority business] small, minority business and veteran-owned 218
278	278	contractor state set-aside program goals for the twelve-month period 219
279	279	beginning July first in the same year. Each such report shall be 220
280	280	submitted to the Commissioner of Administrative Services, the 221
281	281	Commission on Human Rights and Opportunities and the 222
282	282	cochairpersons and ranking members of the joint standing committees 223
283	283	of the General Assembly having cognizance of matters relating to 224
284	284	planning and development and government administration. 225
285	285	Sec. 9. Subsection (m) of section 4a-60g of the general statutes is 226
286	286	repealed and the following is substituted in lieu thereof (Effective 227
287	287	October 1, 2019): 228
288	288	(m) On or before November first of each year and on a quarterly 229
289	289	basis thereafter, each awarding agency setting aside contracts or 230
290	290	portions of contracts under subdivision (2) of subsection (b) of this 231
291	291	section shall prepare a status report on the implementation and results 232
292	292	of its [small business and minority business enterprise] small 233
293	293	contractor, minority business enterprise and veteran-owned contractor 234
294	294	state set-aside program goals during the three-month period ending 235
295	295	one month before the due date for the report. Each report shall be 236
296	296	submitted to the Commissioner of Administrative Services and the 237
297	297	Commission on Human Rights and Opportunities. Any awarding 238
298	298	agency that achieves less than fifty per cent of its [small contractor and 239
299	299	minority business enterprise] small contractor, minority business 240
300	300	enterprise and veteran-owned contractor state set-aside program goals 241
301	301	by the end of the second reporting period in any twelve-month period 242
302	302	beginning on July first shall provide a written explanation to the 243
303	303	Commissioner of Administrative Services and the Commission on 244
304	304	Human Rights and Opportunities detailing how the awarding agency 245
305	305	will achieve its goals in the final reporting period. The Commission on 246
306	306	Human Rights and Opportunities shall: (1) Monitor the achievement of 247
307	307	the annual goals established by each awarding agency; and (2) prepare 248 Raised Bill No. 862
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313	313	a quarterly report concerning such goal achievement. The report shall 249
314	314	be submitted to each awarding agency that submitted a report, the 250
315	315	Commissioner of Economic and Community Development, the 251
316	316	Commissioner of Administrative Services and the cochairpersons and 252
317	317	ranking members of the joint standing committees of the General 253
318	318	Assembly having cognizance of matters relating to planning and 254
319	319	development and government administration. Failure by any 255
320	320	awarding agency to submit any reports required by this section shall 256
321	321	be a violation of section 46a-77. 257
322	322	Sec. 10. Subsection (e) of section 4a-60h of the general statutes is 258
323	323	repealed and the following is substituted in lieu thereof (Effective 259
324	324	October 1, 2019): 260
325	325	(e) (1) On or before January 1, 1994, the Commissioner of 261
326	326	Administrative Services shall, by regulations adopted in accordance 262
327	327	with chapter 54, establish a process to ensure that small contractors, 263
328	328	small businesses and minority business enterprises have fair access to 264
329	329	all competitive state contracts outside of the state set-aside program. 265
330	330	(2) On or before January 1, 2020, the Commissioner of Administrative 266
331	331	Services shall, by regulations adopted in accordance with chapter 54, 267
332	332	establish a process to ensure that veteran-owned contractors have fair 268
333	333	access to all competitive state contracts outside of the state set-aside 269
334	334	program. 270
335	335	Sec. 11. Section 4a-60j of the general statutes is repealed and the 271
336	336	following is substituted in lieu thereof (Effective October 1, 2019): 272
337	337	A small contractor and a veteran-owned contractor shall receive 273
338	338	payment on a contract awarded to [him] such contractor under the 274
339	339	provisions of sections 4a-60g to 4a-60i, inclusive, as amended by this 275
340	340	act, no later than thirty days from the due date of any such payment on 276
341	341	such contract. 277
342	342	Sec. 12. Subsection (a) of section 4a-57 of the general statutes is 278
343	343	repealed and the following is substituted in lieu thereof (Effective 279
344	344	October 1, 2019): 280 Raised Bill No. 862
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348	348	LCO No. 3795 10 of 11
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350	350	(a) All purchases of, and contracts for, supplies, materials, 281
351	351	equipment and contractual services, except purchases and contracts 282
352	352	made pursuant to the provisions of subsection (b) of this section and 283
353	353	public utility services as provided in subsection (e) of this section shall 284
354	354	be based, when possible, on competitive bids or competitive 285
355	355	negotiation. The commissioner shall solicit competitive bids or 286
356	356	proposals by providing notice of the planned purchase in a form and 287
357	357	manner that the commissioner determines will maximize public 288
358	358	participation in the competitive bidding or competitive negotiation 289
359	359	process, including participation by small contractors, as defined in 290
360	360	section 4a-60g, as amended by this act, and promote competition. In 291
361	361	the case of an expenditure that is estimated to exceed fifty thousand 292
362	362	dollars, such notice shall be posted, not less than five calendar days 293
363	363	before the final date of submitting bids or proposals, on the State 294
364	364	Contracting Portal. Each notice of a planned purchase under this 295
365	365	subsection shall indicate the type of goods and services to be 296
366	366	purchased and the estimated value of the contract award. The notice 297
367	367	shall also contain a notice of state contract requirements concerning 298
368	368	nondiscrimination and affirmative action pursuant to section 4a-60 299
369	369	and, when applicable, requirements concerning the awarding of 300
370	370	contracts to [small contractors, minority business enterprises, 301
371	371	individuals with a disability and nonprofit corporations pursuant to 302
372	372	section 4a-60g.] small contractors, minority business enterprises, 303
373	373	individuals with a disability, nonprofit corporations and veteran-304
374	374	owned contractors pursuant to section 4a-60g, as amended by this act. 305
375	375	Each bid and proposal shall be kept sealed or secured until opened 306
376	376	publicly at the time stated in the notice soliciting such bid or proposal. 307
377	377	Sec. 13. Subdivision (3) of section 22a-263a of the general statutes is 308
378	378	repealed and the following is substituted in lieu thereof (Effective 309
379	379	October 1, 2019): 310
380	380	(3) Each report required under section 4a-60g, as amended by this 311
381	381	act, setting forth [small and minority-business] small contractor, 312
382	382	minority business enterprise and veteran-owned contractor set-aside 313
383	383	program goals and addressing the authority's progress in meeting said 314 Raised Bill No. 862
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387	387	LCO No. 3795 11 of 11
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389	389	goals, not later than seven days after each such report is required to be 315
390	390	submitted to the Commission on Human Rights and Opportunities 316
391	391	under said section 4a-60g, as amended by this act; 317
392	392	This act shall take effect as follows and shall amend the following
393	393	sections:
394	394
395	395	Section 1 October 1, 2019 4a-59(c)
396	396	Sec. 2 October 1, 2019 4a-60g(a)
397	397	Sec. 3 October 1, 2019 4a-60g(b)(2)
398	398	Sec. 4 October 1, 2019 4a-60g(e)
399	399	Sec. 5 October 1, 2019 4a-60g(g)
400	400	Sec. 6 October 1, 2019 4a-60g(k)(1)
401	401	Sec. 7 October 1, 2019 4a-60g(k)(3)
402	402	Sec. 8 October 1, 2019 4a-60g(l)
403	403	Sec. 9 October 1, 2019 4a-60g(m)
404	404	Sec. 10 October 1, 2019 4a-60h(e)
405	405	Sec. 11 October 1, 2019 4a-60j
406	406	Sec. 12 October 1, 2019 4a-57(a)
407	407	Sec. 13 October 1, 2019 22a-263a(3)
408	408
409	409	Statement of Purpose:
410	410	To give veteran-owned businesses a ten per cent price preference on
411	411	state contracts and set aside five per cent of all such contracts for
412	412	award to veteran-owned contractors.
413	413	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
414	414	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
415	415	not underlined.]
416	416