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repealed and the following is substituted in lieu thereof (Effective July 2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repealed and the following is substituted in lieu thereof (Effective July 16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