Connecticut 2019 Regular Session

Connecticut Senate Bill SB00917 Compare Versions

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7		-	General Assembly ~~Substitute~~ Bill No. 917
	5	+	General Assembly Raised Bill No. 917
8	6		January Session, 2019
	7	+	LCO No. 4535
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	10	+	Referred to Committee on GOVERNMENT ADMINISTRATION
	11	+	AND ELECTIONS
	12	+
	13	+
	14	+	Introduced by:
	15	+	(GAE)
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14	20		AN ACT CONCERNING TH E STATE CONTRACTING STANDARD S
15	21		BOARD AND REQUIREMEN TS FOR PRIVATIZATION CONTRACTS.
16	22		Be it enacted by the Senate and House of Representatives in General
17	23		Assembly convened:
18	24
19	25		Section 1. Subdivision (21) of section 4e-1 of the general statutes is 1
20	26		repealed and the following is substituted in lieu thereof (Effective July 2
21	27		1, 2019): 3
22	28		(21) "Privatization contract" means (A) an agreement or series of 4
23	29		agreements between a state contracting agency and a person or entity 5
24	30		in which such person or entity agrees to provide services that are 6
25	31		substantially similar to and in lieu of services provided, in whole or in 7
26	32		part, by state employees, other than contracts with a nonprofit agency, 8
27	33		which are in effect as of January 1, 2009, and which through a renewal, 9
28	34		modification, extension or rebidding of contracts continue to be 10
29	35		provided by a nonprofit agency; or (B) a procurement contract entered 11
30	36		into on or after July 1, 2019, for which subsequent related services, the 12
31	37		total cost of which exceed fifty thousand dollars per year, will be 13
32		-	required; 14
	38	+	required; 14 Raised Bill No. 917
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33	44		Sec. 2. Subdivision (28) of section 4e-1 of the general statutes is 15
34	45		repealed and the following is substituted in lieu thereof (Effective July 16
35	46		1, 2019): 17
36		-	(28) "State contracting agency" means any executive branch agency, 18 Substitute Bill No. 917
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	47	+	(28) "State contracting agency" means any executive branch agency, 18
43	48		board, commission, department, office, institution or council. "State 19
44	49		contracting agency" does not include the judicial branch, the legislative 20
45	50		branch, the offices of the Secretary of the State, the State Comptroller, 21
46	51		the Attorney General, the State Treasurer, with respect to their 22
47	52		constitutional functions, any state agency with respect to contracts 23
48	53		specific to the constitutional and statutory functions of the office of the 24
49	54		State Treasurer. For the purposes of section 4e-16, as amended by this 25
50	55		act, "state contracting agency" includes any constituent unit of the state 26
51	56		system of higher education and, [for] notwithstanding any provision of 27
52	57		the general statutes, any quasi-public agency created to provide 28
53	58		financing for any such constituent unit and any quasi-public agency 29
54	59		not specifically excluded under this chapter. For the purposes of 30
55	60		section 4e-19, "state contracting agency" includes the State Education 31
56	61		Resource Center, established under section 10-4q; 32
57	62		Sec. 3. Subsection (m) of section 4e-2 of the general statutes is 33
58	63		repealed and the following is substituted in lieu thereof (Effective July 34
59	64		1, 2019): 35
60	65		(m) [Eight] The lesser of eight members of the board, or a majority 36
61	66		of the appointed members of the board, including, [not less than] in 37
62	67		either case, at least one member appointed by a legislative leader, shall 38
63	68		constitute a quorum which shall be required for the transaction of 39
64	69		business by the board. 40
65	70		Sec. 4. Subsection (c) of section 4e-13 of the general statutes is 41
66	71		repealed and the following is substituted in lieu thereof (Effective July 42
67	72		1, 2019): 43
68	73		(c) All state agencies in the executive branch, the constituent units of 44
69	74		the state system of higher education and quasi-public agencies shall 45
70		-	post all bids, requests for proposals and all resulting contracts and 46
	75	+	post all bids, requests for proposals and all resulting contracts and 46 Raised Bill No. 917
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71	81		agreements on the State Contracting Portal and shall, with the 47
72	82		assistance of the Department of Administrative Services as needed, 48
73	83		develop the infrastructure and capability to electronically 49
74		-	communicate with the State Contracting Portal. No privatization 50 Substitute Bill No. 917
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	84	+	communicate with the State Contracting Portal. No privatization 50
81	85		contract shall be valid unless, at least thirty days prior to the execution 51
82	86		of such contract, all certifications required by section 4e-16, as 52
83	87		amended by this act, have been posted on the State Contracting Portal. 53
84	88		Sec. 5. Subsection (p) of section 4e-16 of the general statutes is 54
85	89		repealed and the following is substituted in lieu thereof (Effective July 55
86	90		1, 2019): 56
87	91		(p) Prior to entering into or renewing any privatization contract that 57
88	92		is not subject to the provisions of subsection (a) of this section, the state 58
89	93		contracting agency shall evaluate such contract to determine if 59
90	94		entering into or renewing such contract is the most cost-effective 60
91	95		method of delivering the service, by determining the costs, as defined 61
92	96		in subsection (b) of this section, of such service. If the privatization 62
93	97		contract is for a total amount of more than one million dollars, the state 63
94	98		contracting agency shall also develop a business case for such 64
95	99		privatization contract in accordance with the provisions of subsection 65
96	100		(d) of this section. The state contracting agency shall perform such 66
97	101		evaluation of cost-effectiveness in accordance with a template 67
98	102		prescribed by the Secretary of the Office of Policy and Management 68
99	103		and such evaluation shall be subject to verification by the secretary. 69
100	104		Such template shall require a certification by the state contracting 70
101	105		agency that it has complied with all requirements of this subsection 71
102	106		and an explanation for the basis of such agency's determination that 72
103	107		the provisions of subsection (a) of this section do not apply. If such 73
104	108		evaluation of cost-effectiveness includes a determination by the state 74
105	109		contracting agency that there are no savings to the state if the contract 75
106	110		is performed by the contractor, such agency shall not enter into such 76
107	111		contract without (1) providing a written report to the secretary 77
108	112		concerning the reason such agency seeks to enter into such contract 78
109	113		despite a lack of savings, and (2) receiving written authorization from 79
110		-	the secretary to enter into such contract. If such contract is not a 80
	114	+	the secretary to enter into such contract. If such contract is not a 80 Raised Bill No. 917
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111	120		renewal, the state contracting agency shall also consider and report, in 81
112	121		writing, to the secretary on whether the quality of services could be 82
113		-	diminished by the privatization contract and any risks associated with 83 Substitute Bill No. 917
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	122	+	diminished by the privatization contract and any risks associated with 83
120	123		the termination or rescission of such contract. The secretary may waive 84
121	124		the requirement for an evaluation of cost-effectiveness under this 85
122	125		subsection upon a written finding by the secretary that exigent or 86
123	126		emergent circumstances necessitate such waiver. 87
124	127		Sec. 6. Section 4e-16 of the general statutes is amended by adding 88
125	128		subsections (r) to (t), inclusive, as follows (Effective July 1, 2019): 89
126	129		(NEW) (r) A state contracting agency that seeks to enter into or 90
127	130		renew a privatization contract shall, not less than sixty days before 91
128	131		entering into or renewing such contract, provide written notice to any 92
129	132		collective bargaining agent that represents state employees performing 93
130	133		work of the type and nature required by the privatization contract. 94
131	134		Such notice shall include the information required under subsections 95
132	135		(a) to (d), inclusive, of this section or subsection (p) of this section, as 96
133	136		applicable, and shall offer the collective bargaining agent the 97
134	137		opportunity to meet with the agency to discuss such information and 98
135	138		discuss whether the work could more appropriately be performed by 99
136	139		state employees, prior to the contract being entered into or renewed by 100
137	140		the agency. 101
138	141		(NEW) (s) Any state contracting agency that seeks approval of a 102
139	142		contract that could be done at a lesser cost by state employees but 103
140	143		determines there is an insufficient number of state employees within 104
141	144		such agency to perform the contract shall, not later than sixty days 105
142	145		after making such determination, submit a plan to the Secretary of the 106
143	146		Office of Policy and Management for preventing a recurrence of such 107
144	147		insufficiency by requesting authorization for the hiring of additional 108
145	148		state employees. The secretary shall, upon the submission of any 109
146	149		proposed budget or budget adjustment by the Governor, report to the 110
147	150		joint standing committees of the General Assembly having cognizance 111
148	151		of matters relating to appropriations and the budgets of state agencies 112
149		-	and government administration, in accordance with the provisions of 113
	152	+	and government administration, in accordance with the provisions of 113 Raised Bill No. 917
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150	158		section 11-4a, on whether and to what extent such agency plans are 114
151	159		included in such submission and the rationale for determining 115
152		-	whether and to what extent to include such plans in the budget or 116 Substitute Bill No. 917
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	160	+	whether and to what extent to include such plans in the budget or 116
159	161		budget adjustment. 117
160	162		(NEW) (t) No state contracting agency may enter into a 118
161	163		privatization contract without obtaining the formal approval of the 119
162	164		contract from the Attorney General. Prior to entering into any such 120
163	165		contract, the agency shall submit to the Attorney General (1) a copy of 121
164	166		the proposed contract, (2) any certifications required by this section 122
165		-	attached to the contract, and (3) ~~one of~~ the ~~following: (A) A~~ 123
166		-	~~certification that the contract is~~ not subject to the provisions of 124
167		-	~~subsection (a) of this section, (B) a~~ certification that the contract was 125
168		-	~~approved by the State Contracting~~ Standards Board, or ~~(C)~~ a copy of 126
169		-	~~the written exemption from the~~ requirements of subsection (a) of this 127
170		-	~~section signed by the Governor~~ pursuant to subsection (o) of this 128
171		-	~~section. Any privatization contract~~ entered into on or after July 1, 2019, 129
172		-	~~shall not be binding upon the state~~ unless such privatization contract 130
173		-	~~conforms with the requirements of~~ this subsection. 131
	167	+	attached to the contract, and (3) either a certification that the contract is 123
	168	+	not subject to the provisions of subsection (a) of this section, a 124
	169	+	certification that the contract was approved by the State Contracting 125
	170	+	Standards Board or a copy of the written exemption from the 126
	171	+	requirements of subsection (a) of this section signed by the Governor 127
	172	+	pursuant to subsection (o) of this section. Any privatization contract 128
	173	+	entered into on or after July 1, 2019, shall not be binding upon the state 129
	174	+	unless such privatization contract conforms with the requirements of 130
	175	+	this subsection. 131
174	176		Sec. 7. Section 4e-47 of the general statutes is repealed and the 132
175	177		following is substituted in lieu thereof (Effective July 1, 2019): 133
176	178		On or [after January 1, 2011,] before January 1, 2020, each 134
177	179		constituent unit of the state system of higher education shall propose 135
178	180		regulations concerning its contracting procedures to the State 136
179	181		Contracting Standards Board to be adopted by the board. The board 137
180	182		shall adopt regulations, in accordance with the provisions of chapter 138
181	183		54, [to apply the contracting procedures, as described in sections 4e-18 139
182	184		to 4e-45, inclusive, to each constituent unit of the state system of higher 140
183	185		education.] with any modifications to the proposed regulations the 141
184	186		board deems appropriate. Such regulations shall take into 142
185	187		consideration circumstances and factors that are unique to such 143
186	188		constituent units. Until such regulations are adopted by the State 144
187	189		Contracting Standards Board, the provisions of sections 4e-18 to 4e-46, 145
188		-	inclusive, shall apply to every expenditure of public funds by any 146
189		-	constituent unit of the state system of higher education, regardless of 147
190		-	the source of such funds. 148 Substitute Bill No. 917
	190	+	inclusive, shall apply to every expenditure of public funds by any 146 Raised Bill No. 917
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	196	+	constituent unit of the state system of higher education, irrespective of 147
	197	+	the source of such funds. 148
197	198		Sec. 8. (NEW) (Effective July 1, 2019) (a) Not later than ninety days 149
198	199		after the adjournment sine die of each regular session of the General 150
199		-	Assembly, the Secretary of the Office of Policy and Management shall 151
200		-	determine the appropriate staffing levels at the State Contracting 152
201		-	Standards Board sufficient for the board to carry out its statutory 153
202		-	duties. In any year during which the secretary determines that the 154
203		-	board is staffed at substantially lower levels than is sufficient, the 155
204		-	secretary shall notify the Auditors of Public Accounts of such 156
205		-	determination and the auditors may issue the compliance report for 157
206		-	each state contracting agency as required under section 4e-6 of the 158
207		-	general statutes. If such a compliance report has not been issued for an 159
208		-	agency for three years or more as of December thirty-first of any 160
209		-	calendar year, the auditors shall issue such report not later than April 161
210		-	first of the following calendar year. 162
211		-	(b) To the extent the State Contracting Standards Board remains 163
212		-	below the appropriate staffing level determined by the secretary, each 164
213		-	state contracting agency shall designate an employee to serve as a 165
214		-	liaison with the State Contracting Standards Board. Such liaison shall 166
215		-	notify the board of any privatization contract valued at over fifty 167
216		-	thousand dollars and shall provide the board any evaluation or 168
217		-	analysis of such contract not later than ten days after the agency 169
218		-	completes such evaluation or analysis. An electronic communication to 170
219		-	the board that directs the staff of the board to a posting on the State 171
220		-	Contracting Portal shall constitute sufficient notice under this 172
221		-	subsection. Each state contracting agency shall inform its liaison that 173
222		-	any such reporting is an essential part of such employee's duties. 174
223		-	Sec. 9. (NEW) (Effective July 1, 2019) The administrative head of each 175
224		-	budgeted agency shall include in its estimates of expenditure 176
225		-	requirements transmitted to the Secretary of the Office of Policy and 177
226		-	Management pursuant to section 4-77 of the general statutes, and the 178
227		-	Governor may include in the Governor's recommended appropriations 179
228		-	in the budget document transmitted to the General Assembly pursuant 180
229		-	to section 4-71 of the general statutes, an estimate of the amount 181 Substitute Bill No. 917
	200	+	Assembly, the Auditors of Public Accounts shall recommend to the 151
	201	+	Secretary of the Office of Policy and Management the appropriate 152
	202	+	staffing levels at the State Contracting Standards Board sufficient for 153
	203	+	the board to carry out its statutory duties. In any year during which 154
	204	+	the secretary determines that the board is staffed at substantially lower 155
	205	+	levels than recommended by the auditors, the auditors may issue the 156
	206	+	compliance report for each state contracting agency as required under 157
	207	+	section 4e-6 of the general statutes. If such a compliance report has not 158
	208	+	been issued for an agency for three years or more as of December 159
	209	+	thirty-first of any calendar year, the auditors shall issue such report not 160
	210	+	later than April first of the following calendar year. 161
	211	+	(b) To the extent the State Contracting Standards Board remains 162
	212	+	below the staffing level recommended by the auditors, each state 163
	213	+	contracting agency shall designate an employee to serve as a liaison 164
	214	+	with the State Contracting Standards Board. Such liaison shall notify 165
	215	+	the board of any privatization contract valued at over fifty thousand 166
	216	+	dollars and shall provide the board any evaluation or analysis of such 167
	217	+	contract not later than ten days after the agency completes such 168
	218	+	evaluation or analysis. An electronic communication to the board that 169
	219	+	directs the staff of the board to a posting on the State Contracting 170
	220	+	Portal shall constitute sufficient notice under this subsection. Each 171
	221	+	state contracting agency shall inform its liaison that any such reporting 172
	222	+	is an essential part of such employee's duties. 173
	223	+	Sec. 9. (NEW) (Effective July 1, 2019) The administrative head of each 174
	224	+	budgeted agency shall include in its estimates of expenditure 175
	225	+	requirements transmitted to the Secretary of the Office of Policy and 176
	226	+	Management pursuant to section 4-77 of the general statutes and the 177
	227	+	Governor may include in the Governor's recommended appropriations 178
	228	+	in the budget document transmitted to the General Assembly pursuant 179 Raised Bill No. 917
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236		-	required by such agency for expenditures related to hiring additional 182
237		-	employees pursuant to subsection (s) of section 4e-16 of the general 183
238		-	statutes, as amended by this act. 184
239		-	Sec. 10. Subsection (a) of section 4-73 of the general statutes is 185
240		-	repealed and the following is substituted in lieu thereof (Effective July 186
241		-	1, 2019): 187
242		-	(a) The budget document shall present in detail for each fiscal year 188
243		-	of the ensuing biennium the Governor's recommendation for 189
244		-	appropriations to meet the expenditure needs of the state from the 190
245		-	General Fund and from all special and agency funds classified by 191
246		-	budgeted agencies and showing for each budgeted agency and its 192
247		-	subdivisions: (1) A narrative summary describing the agency, the 193
248		-	Governor's recommendations for appropriations for the agency, and a 194
249		-	list of agency programs, the actual expenditure for the last-completed 195
250		-	fiscal year, the estimated expenditure for the current fiscal year, the 196
251		-	amount requested by the agency and the Governor's recommendations 197
252		-	for appropriations for each fiscal year of the ensuing biennium; and (2) 198
253		-	a summary of permanent full-time positions by fund, setting forth the 199
254		-	number filled and the number vacant as of the end of the last-200
255		-	completed fiscal year, the total number intended to be funded by 201
256		-	appropriations without reduction for turnover for the fiscal year in 202
257		-	progress, the total number requested and the total number 203
258		-	recommended for each fiscal year of the biennium to which the budget 204
259		-	relates, including the rationale for determining its estimate of 205
260		-	additional expenditures, if any, related to hiring additional employees 206
261		-	reported under section 9 of this act. 207
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	234	+	to section 4-71 of the general statutes, an estimate of the amount 180
	235	+	required by such agency for expenditures related to hiring additional 181
	236	+	employees pursuant to subsection (s) of section 4e-16 of the general 182
	237	+	statutes, as amended by this act. 183
	238	+	Sec. 10. Subsection (a) of section 4-73 of the general statutes is 184
	239	+	repealed and the following is substituted in lieu thereof (Effective July 185
	240	+	1, 2019): 186
	241	+	(a) The budget document shall present in detail for each fiscal year 187
	242	+	of the ensuing biennium the Governor's recommendation for 188
	243	+	appropriations to meet the expenditure needs of the state from the 189
	244	+	General Fund and from all special and agency funds classified by 190
	245	+	budgeted agencies and showing for each budgeted agency and its 191
	246	+	subdivisions: (1) A narrative summary describing the agency, the 192
	247	+	Governor's recommendations for appropriations for the agency, and a 193
	248	+	list of agency programs, the actual expenditure for the last-completed 194
	249	+	fiscal year, the estimated expenditure for the current fiscal year, the 195
	250	+	amount requested by the agency and the Governor's recommendations 196
	251	+	for appropriations for each fiscal year of the ensuing biennium; (2) a 197
	252	+	summary of permanent full-time positions by fund, setting forth the 198
	253	+	number filled and the number vacant as of the end of the last-199
	254	+	completed fiscal year, the total number intended to be funded by 200
	255	+	appropriations without reduction for turnover for the fiscal year in 201
	256	+	progress, the total number requested and the total number 202
	257	+	recommended for each fiscal year of the biennium to which the budget 203
	258	+	relates, including the rationale for determining to what extent to fund 204
	259	+	additional positions within a budgeted agency if requested under 205
	260	+	section 9 of this act. 206
262	261		This act shall take effect as follows and shall amend the following
263	262		sections:
264	263
265	264		Section 1 July 1, 2019 4e-1(21)
266	265		Sec. 2 July 1, 2019 4e-1(28)
267	266		Sec. 3 July 1, 2019 4e-2(m)
268		-	Sec. 4 July 1, 2019 4e-13(c) ~~Substitute~~ Bill No. 917
	267	+	Sec. 4 July 1, 2019 4e-13(c) Raised Bill No. 917
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275	273		Sec. 5 July 1, 2019 4e-16(p)
276	274		Sec. 6 July 1, 2019 4e-16
277	275		Sec. 7 July 1, 2019 4e-47
278	276		Sec. 8 July 1, 2019 New section
279	277		Sec. 9 July 1, 2019 New section
280	278		Sec. 10 July 1, 2019 4-73(a)
281	279
282		-	Statement of Legislative Commissioners:
283		-	Section 10(a) was reworded for statutory consistency.
284		-
285		-	GAE Joint Favorable Subst.
	280	+	Statement of Purpose:
	281	+	To redefine "privatization contract" and "state contracting agency",
	282	+	modify the quorum requirement of the State Contracting Standards
	283	+	Board, impose additional requirements on proposed privatization
	284	+	contracts and require the Auditors of Public Accounts to issue
	285	+	compliance reports regarding staffing levels of the State Contracting
	286	+	Standards Board.
	287	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	288	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	289	+	not underlined.]
286	290