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General Assembly Raised Bill No. 5400
February Session, 2020
LCO No. 2239
Referred to Committee on VETERANS' AFFAIRS
Introduced by:
(VA)
AN ACT CONCERNING VE TERAN-OWNED MICRO BU SINESSES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (c) of section 4a-59 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2020): 3
(c) All open market orders or contracts shall be awarded to (1) the 4
lowest responsible qualified bidder, the qualities of the articles to be 5
supplied, their conformity with the specifications, their suitability to the 6
requirements of the state government and the delivery terms being 7
taken into consideration and, at the discretion of the Commissioner of 8
Administrative Services, life-cycle costs and trade-in or resale value of 9
the articles may be considered where it appears to be in the best interest 10
of the state, (2) the highest scoring bidder in a multiple criteria bid, in 11
accordance with the criteria set forth in the bid solicitation for the 12
contract, or (3) the proposer whose proposal is deemed by the awarding 13
authority to be the most advantageous to the state, in accordance with 14
the criteria set forth in the request for proposals, including price and 15
evaluation factors. Notwithstanding any provision of the general 16 Raised Bill No. 5400
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statutes to the contrary, each state agency awarding a contract through 17
competitive negotiation shall include price as an explicit factor in the 18
criteria in the request for proposals and for the contract award. In 19
considering past performance of a bidder for the purpose of 20
determining the "lowest responsible qualified bidder" or the "highest 21
scoring bidder in a multiple criteria bid", the commissioner shall 22
evaluate the skill, ability and integrity of the bidder in terms of the 23
bidder's fulfillment of past contract obligations and the bidder's 24
experience or lack of experience in delivering supplies, materials, 25
equipment or contractual services of the size or amount for which bids 26
have been solicited. In determining the lowest responsible qualified 27
bidder for the purposes of this section, the commissioner may give a 28
price preference of up to ten per cent for (A) the purchase of goods made 29
with recycled materials or the purchase of recyclable or remanufactured 30
products if the commissioner determines that such preference would 31
promote recycling or remanufacturing. As used in this subsection, 32
"recyclable" means able to be collected, separated or otherwise 33
recovered from the solid waste stream for reuse, or for use in the 34
manufacture or assembly of another package or product, by means of a 35
recycling program which is reasonably available to at least seventy-five 36
per cent of the state's population, "remanufactured" means restored to 37
its original function and thereby diverted from the solid waste stream 38
by retaining the bulk of components that have been used at least once 39
and by replacing consumable components and "remanufacturing" 40
means any process by which a product is remanufactured; (B) the 41
purchase of motor vehicles powered by a clean alternative fuel; (C) the 42
purchase of motor vehicles powered by fuel other than a clean 43
alternative fuel and conversion equipment to convert such motor 44
vehicles allowing the vehicles to be powered by either the exclusive use 45
of clean alternative fuel or dual use of a clean alternative fuel and a fuel 46
other than a clean alternative fuel. As used in this subsection, "clean 47
alternative fuel" means natural gas, electricity, hydrogen or propane 48
when used as a motor vehicle fuel; or (D) the purchase of goods or 49
services from a micro business, except that, in the case of a veteran-50
owned micro business, the commissioner may give a price preference of 51 Raised Bill No. 5400
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[up to fifteen] ten per cent. As used in this subsection, "micro business" 52
means a business with gross revenues not exceeding three million 53
dollars in the most recently completed fiscal year, "veteran-owned micro 54
business" means a micro business of which at least fifty-one per cent of 55
the ownership is held by one or more veterans and "veteran" means any 56
person (i) honorably discharged from, or released under honorable 57
conditions from active service in, the armed forces, as defined in section 58
27-103, or (ii) with a qualifying condition, as defined in said section, who 59
has received a discharge other than bad conduct or dishonorable from 60
active service in the armed forces. All other factors being equal, 61
preference shall be given to supplies, materials and equipment 62
produced, assembled or manufactured in the state and services 63
originating and provided in the state. Except with regard to contracts 64
that may be paid for with United States Department of Transportation 65
funds, if any such bidder refuses to accept, within ten days, a contract 66
awarded to such bidder, such contract may be awarded to the next 67
lowest responsible qualified bidder or the next highest scoring bidder in 68
a multiple criteria bid, whichever is applicable, and so on until such 69
contract is awarded and accepted. Except with regard to contracts that 70
may be paid for with United States Department of Transportation funds, 71
if any such proposer refuses to accept, within ten days, a contract 72
awarded to such proposer, such contract shall be awarded to the next 73
most advantageous proposer, and so on until the contract is awarded 74
and accepted. There shall be a written evaluation made of each bid. This 75
evaluation shall identify the vendors and their respective costs and 76
prices, document the reason why any vendor is deemed to be 77
nonresponsive and recommend a vendor for award. A contract valued 78
at one million dollars or more shall be awarded to a bidder other than 79
the lowest responsible qualified bidder or the highest scoring bidder in 80
a multiple criteria bid, whichever is applicable, only with written 81
approval signed by the Commissioner of Administrative Services and 82
by the Comptroller. The commissioner shall post on the department's 83
Internet web site all awards made pursuant to the provisions of this 84
section. 85 Raised Bill No. 5400
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Sec. 2. Section 4a-60g of the 2020 supplement to the general statutes 86
is repealed and the following is substituted in lieu thereof (Effective 87
October 1, 2020): 88
(a) As used in this section and sections 4a-60h to 4a-60j, inclusive, as 89
amended by this act, the following terms have the following meanings: 90
(1) "Small contractor" means any contractor, subcontractor, 91
manufacturer, service company or nonprofit corporation (A) that 92
maintains its principal place of business in the state, (B) that had gross 93
revenues not exceeding twenty million dollars in the most recently 94
completed fiscal year prior to such application, and (C) that is 95
independent. "Small contractor" does not include any person who is 96
affiliated with another person if both persons considered together have 97
a gross revenue exceeding twenty million dollars. 98
(2) "Independent" means the viability of the enterprise of the small 99
contractor does not depend upon another person, as determined by an 100
analysis of the small contractor's relationship with any other person in 101
regards to the provision of personnel, facilities, equipment, other 102
resources and financial support, including bonding. 103
(3) "State agency" means each state board, commission, department, 104
office, institution, council or other agency with the power to contract for 105
goods or services itself or through its head. 106
(4) "Minority business enterprise" means any small contractor, (A) 107
fifty-one per cent or more of the capital stock, if any, or assets of which 108
are owned by a person or persons who (i) exercise operational authority 109
over the daily affairs of the enterprise, (ii) have the power to direct the 110
management and policies and receive the beneficial interest of the 111
enterprise, (iii) possess managerial and technical competence and 112
experience directly related to the principal business activities of the 113
enterprise, and (iv) are members of a minority, as such term is defined 114
in subsection (a) of section 32-9n, or are individuals with a disability, or 115
(B) which is a nonprofit corporation in which fifty-one per cent or more 116
of the persons who (i) exercise operational authority over the enterprise, 117 Raised Bill No. 5400
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(ii) possess managerial and technical competence and experience 118
directly related to the principal business activities of the enterprise, (iii) 119
have the power to direct the management and policies of the enterprise, 120
and (iv) are members of a minority, as defined in this subsection, or are 121
individuals with a disability. 122
(5) "Affiliated" means the relationship in which a person directly, or 123
indirectly through one or more intermediaries, controls, is controlled by 124
or is under common control with another person. 125
(6) "Control" means the power to direct or cause the direction of the 126
management and policies of any person, whether through the 127
ownership of voting securities, by contract or through any other direct 128
or indirect means. Control shall be presumed to exist if any person, 129
directly or indirectly, owns, controls, holds with the power to vote, or 130
holds proxies representing, twenty per cent or more of any voting 131
securities of another person. 132
(7) "Person" means any individual, corporation, limited liability 133
company, partnership, association, joint stock company, business trust, 134
unincorporated organization or other entity. 135
(8) "Individual with a disability" means an individual (A) having a 136
physical or mental impairment that substantially limits one or more of 137
the major life activities of the individual, which mental impairment may 138
include, but is not limited to, having one or more mental disorders, as 139
defined in the most recent edition of the American Psychiatric 140
Association's "Diagnostic and Statistical Manual of Mental Disorders", 141
or (B) having a record of such an impairment. 142
(9) "Nonprofit corporation" means a nonprofit corporation 143
incorporated pursuant to chapter 602 or any predecessor statutes 144
thereto. 145
(10) "Municipality" means any town, city, borough, consolidated 146
town and city or consolidated town and borough. 147 Raised Bill No. 5400
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(11) "Quasi-public agency" has the same meaning as provided in 148
section 1-120. 149
(12) "Awarding agency" means a state agency or political subdivision 150
of the state other than a municipality. 151
(13) "Public works contract" has the same meaning as provided in 152
section 46a-68b. 153
(14) "Municipal public works contract" means that portion of an 154
agreement entered into on or after October 1, 2015, between any 155
individual, firm or corporation and a municipality for the construction, 156
rehabilitation, conversion, extension, demolition or repair of a public 157
building, highway or other changes or improvements in real property, 158
which is financed in whole or in part by the state, including, but not 159
limited to, matching expenditures, grants, loans, insurance or 160
guarantees but excluding any project of an alliance district, as defined 161
in section 10-262u, financed by state funding in an amount equal to fifty 162
thousand dollars or less. 163
(15) "Quasi-public agency project" means the construction, 164
rehabilitation, conversion, extension, demolition or repair of a building 165
or other changes or improvements in real property pursuant to a 166
contract entered into on or after October 1, 2015, which is financed in 167
whole or in part by a quasi-public agency using state funds, including, 168
but not limited to, matching expenditures, grants, loans, insurance or 169
guarantees. 170
(16) "Veteran-owned micro business" has the same meaning as 171
provided in section 4a-59, as amended by this act. 172
(b) (1) It is found and determined that there is a serious need to help 173
small contractors, minority business enterprises, veteran-owned micro 174
businesses, nonprofit organizations and individuals with disabilities to 175
be considered for and awarded state contracts for the purchase of goods 176
and services, public works contracts, municipal public works contracts 177
and contracts for quasi-public agency projects. Accordingly, the 178 Raised Bill No. 5400
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necessity of awarding such contracts in compliance with the provisions 179
of this section, sections 4a-60h to 4a-60j, inclusive, as amended by this 180
act, and sections 32-9i to 32-9p, inclusive, for advancement of the public 181
benefit and good, is declared as a matter of legislative determination. 182
(2) Notwithstanding any provisions of the general statutes, and 183
except as set forth in this section, the head of each awarding agency shall 184
set aside in each fiscal year, for award to small contractors, on the basis 185
of competitive bidding procedures, contracts or portions of contracts for 186
the construction, reconstruction or rehabilitation of public buildings, the 187
construction and maintenance of highways and the purchase of goods 188
and services. The total value of such contracts or portions thereof to be 189
set aside by each such agency shall be at least twenty-five per cent of the 190
total value of all contracts let by the head of such agency in each fiscal 191
year, provided a contract for any goods or services which have been 192
determined by the Commissioner of Administrative Services to be not 193
customarily available from or supplied by small contractors shall not be 194
included. Contracts or portions thereof having a value of not less than 195
twenty-five per cent of the total value of all contracts or portions thereof 196
to be set aside shall be reserved for awards to minority business 197
enterprises. Contracts or portions thereof having a value of not less than 198
five per cent of the total value of all contracts or portions thereof to be 199
set aside shall be reserved for awards to veteran-owned micro 200
businesses. 201
(3) Notwithstanding any provision of the general statutes, and except 202
as provided in this section, on and after October 1, 2015, each 203
municipality when awarding a municipal public works contract shall 204
state in its notice of solicitation for competitive bids or request for 205
proposals or qualifications for such contract that the general or trade 206
contractor shall be required to comply with the provisions of this section 207
and the requirements concerning nondiscrimination and affirmative 208
action under sections 4a-60 and 4a-60a. Any such contractor awarded a 209
municipal public works contract shall, on the basis of competitive 210
bidding procedures, (A) set aside at least twenty-five per cent of the total 211
value of the state's financial assistance for such contract for award to 212 Raised Bill No. 5400
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subcontractors who are small contractors, and (B) of that portion to be 213
set aside in accordance with subparagraph (A) of this subdivision, 214
reserve a portion equivalent to (i) twenty-five per cent of the total value 215
of the contract or portion thereof to be set aside for awards to 216
subcontractors who are minority business enterprises, and (ii) five per 217
cent of the total value of the contract or portion thereof to be set aside 218
for awards to subcontractors who are veteran-owned micro businesses. 219
The provisions of this section shall not apply to any municipality that 220
has established a set-aside program pursuant to section 7-148u, as 221
amended by this act, where the percentage of contracts set aside for 222
minority business enterprises [is] and veteran-owned micro businesses 223
are equivalent to or exceeds the percentage set forth in this subsection. 224
(4) Notwithstanding any provision of the general statutes, and except 225
as provided in this section, on and after October 1, 2015, any individual, 226
firm or corporation that enters into a contract for a quasi-public agency 227
project shall, prior to awarding such contract, notify the contractor to be 228
awarded such project of the requirements of this section and the 229
requirements concerning nondiscrimination and affirmative action 230
under sections 4a-60 and 4a-60a. Any such contractor awarded a 231
contract for a quasi-public agency project shall, on the basis of 232
competitive bidding procedures, (A) set aside at least twenty-five per 233
cent of the total value of the state's financial assistance for such contract 234
for award to subcontractors who are small contractors, and (B) of that 235
portion to be set aside in accordance with subparagraph (A) of this 236
subdivision, reserve a portion equivalent to (i) twenty-five per cent of 237
the total value of the contract or portions thereof to be set aside for 238
awards to subcontractors who are minority business enterprises, and (ii) 239
five per cent of the total value of the contract or portions thereof to be 240
set aside for awards to subcontractors who are veteran-owned micro 241
businesses. 242
(5) Eligibility of nonprofit corporations under the provisions of this 243
section shall be limited to predevelopment contracts awarded by the 244
Commissioner of Housing for housing projects. 245 Raised Bill No. 5400
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(6) In calculating the percentage of contracts to be set aside under 246
subdivisions (2) to (4), inclusive, of this subsection, the awarding agency 247
or contractor shall exclude any contract that may not be set aside due to 248
a conflict with a federal law or regulation. 249
(c) The head of any awarding agency may, in lieu of setting aside any 250
contract or portions thereof, require any general or trade contractor or 251
any other entity authorized by such agency to award contracts, to set 252
aside a portion of any contract for subcontractors who are eligible for 253
set-aside contracts under this section. Nothing in this subsection shall 254
be construed to diminish the total value of contracts which are required 255
to be set aside by any awarding agency pursuant to this section. 256
(d) The head of each awarding agency shall notify the Commissioner 257
of Administrative Services of all contracts to be set aside pursuant to 258
subdivision (2) of subsection (b) or subsection (c) of this section at the 259
time that bid documents for such contracts are made available to 260
potential contractors. 261
(e) The awarding authority shall require that a contractor or 262
subcontractor awarded a contract or a portion of a contract under this 263
section perform not less than thirty per cent of the work with the 264
workforces of such contractor or subcontractor and shall require that not 265
less than fifty per cent of the work be performed by contractors or 266
subcontractors eligible for awards under this section. A contractor 267
awarded a contract or a portion of a contract under this section shall not 268
subcontract with any person with whom the contractor is affiliated. No 269
person who is affiliated with another person shall be eligible for awards 270
under this section if both affiliated persons considered together would 271
not qualify as a small contractor, [or] a minority business enterprise or 272
a veteran-owned micro business under subsection (a) of this section. The 273
awarding authority shall require that a contractor awarded a contract 274
pursuant to this section submit, in writing, an explanation of any 275
subcontract to such contract that is entered into with any person that is 276
not eligible for the award of a contract pursuant to this section, prior to 277
the performance of any work pursuant to such subcontract. 278 Raised Bill No. 5400
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(f) The awarding authority may require that a contractor or 279
subcontractor awarded a contract or a portion of a contract under this 280
section furnish the following documentation: (1) A copy of the certificate 281
of incorporation, certificate of limited partnership, partnership 282
agreement or other organizational documents of the contractor or 283
subcontractor; (2) a copy of federal income tax returns filed by the 284
contractor or subcontractor for the previous year; and (3) evidence of 285
payment of fair market value for the purchase or lease by the contractor 286
or subcontractor of property or equipment from another contractor who 287
is not eligible for set-aside contracts under this section. 288
(g) The awarding authority or the Commissioner of Administrative 289
Services or the Commission on Human Rights and Opportunities may 290
conduct an audit of the financial, corporate and business records and 291
conduct an investigation of any small contractor, [or] minority business 292
enterprise [which] or veteran-owned micro business that applies for or 293
is awarded a set-aside contract for the purpose of determining eligibility 294
for awards or compliance with the requirements established under this 295
section. 296
(h) The provisions of this section shall not apply to (1) any awarding 297
agency for which the total value of all contracts or portions of contracts 298
of the types enumerated in subdivision (2) of subsection (b) of this 299
section is anticipated to be equal to ten thousand dollars or less, or (2) 300
any municipal public works contract or contract for a quasi-public 301
agency project for which the total value of the contract is anticipated to 302
be equal to fifty thousand dollars or less. 303
(i) In lieu of a performance, bid, labor and materials or other required 304
bond, a contractor or subcontractor awarded a contract under this 305
section may provide to the awarding authority, and the awarding 306
authority shall accept a letter of credit. Any such letter of credit shall be 307
in an amount equal to ten per cent of the contract for any contract that 308
is less than one hundred thousand dollars and in an amount equal to 309
twenty-five per cent of the contract for any contract that exceeds one 310
hundred thousand dollars. 311 Raised Bill No. 5400
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(j) (1) Whenever the awarding agency has reason to believe that any 312
contractor or subcontractor awarded a state set-aside contract has 313
wilfully violated any provision of this section, the awarding agency 314
shall send a notice to such contractor or subcontractor by certified mail, 315
return receipt requested. Such notice shall include: (A) A reference to 316
the provision alleged to be violated; (B) a short and plain statement of 317
the matter asserted; (C) the maximum civil penalty that may be imposed 318
for such violation; and (D) the time and place for the hearing. Such 319
hearing shall be fixed for a date not earlier than fourteen days after the 320
notice is mailed. The awarding agency shall send a copy of such notice 321
to the Commission on Human Rights and Opportunities. 322
(2) The awarding agency shall hold a hearing on the violation 323
asserted unless such contractor or subcontractor fails to appear. The 324
hearing shall be held in accordance with the provisions of chapter 54. If, 325
after the hearing, the awarding agency finds that the contractor or 326
subcontractor has wilfully violated any provision of this section, the 327
awarding agency shall suspend all set-aside contract payments to the 328
contractor or subcontractor and may, in its discretion, order that a civil 329
penalty not exceeding ten thousand dollars per violation be imposed on 330
the contractor or subcontractor. If such contractor or subcontractor fails 331
to appear for the hearing, the awarding agency may, as the facts require, 332
order that a civil penalty not exceeding ten thousand dollars per 333
violation be imposed on the contractor or subcontractor. The awarding 334
agency shall send a copy of any order issued pursuant to this subsection 335
by certified mail, return receipt requested, to the contractor or 336
subcontractor named in such order. The awarding agency may cause 337
proceedings to be instituted by the Attorney General for the 338
enforcement of any order imposing a civil penalty issued under this 339
subsection. 340
(k) (1) (A) On or before January 1, 2000, the Commissioner of 341
Administrative Services shall establish a process for certification of 342
small contractors and minority business enterprises as eligible for set-343
aside contracts. (B) On or before January 1, 2021, the Commissioner of 344
Administrative Services shall establish a process for certification of 345 Raised Bill No. 5400
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veteran-owned micro businesses as eligible for set-aside contracts. (C) 346
Each certification shall be valid for a period not to exceed two years, 347
unless the Commissioner of Administrative Services determines that an 348
extension of such certification is warranted, provided any such 349
extension shall not exceed a period of six months from such 350
certification's original expiration date. Any paper application for 351
certification shall be no longer than six pages. (D) The Department of 352
Administrative Services shall maintain on its web site an updated 353
directory of small contractors, [and] minority business enterprises and 354
veteran-owned micro businesses certified under this section. 355
(2) The Commissioner of Administrative Services may deny an 356
application for the initial issuance or renewal of such certification after 357
issuing a written decision to the applicant setting forth the basis for such 358
denial. The commissioner may revoke such certification for cause after 359
notice and an opportunity for a hearing in accordance with the 360
provisions of chapter 54. Any person aggrieved by the commissioner's 361
decision to deny the issuance or renewal of or to revoke such 362
certification may appeal such decision to the Superior Court, in 363
accordance with the provisions of section 4-183. 364
(3) Whenever the Commissioner of Administrative Services has 365
reason to believe that a small contractor, [or] minority business 366
enterprise [who] or veteran-owned micro business that has applied for 367
or received certification under this section has included a materially 368
false statement in [his or her] its application, the commissioner may 369
impose a penalty not exceeding ten thousand dollars after notice and a 370
hearing held in accordance with chapter 54. Such notice shall include 371
(A) a reference to the statement or statements contained in the 372
application alleged to be false, (B) the maximum civil penalty that may 373
be imposed for such misrepresentation, and (C) the time and place of 374
the hearing. Such hearing shall be fixed for a date not later than fourteen 375
days from the date such notice is sent. The commissioner shall send a 376
copy of such notice to the Commission on Human Rights and 377
Opportunities. 378 Raised Bill No. 5400
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(4) The commissioner shall hold a hearing prior to such revocation or 379
denial or the imposition of a penalty, unless such contractor or 380
subcontractor fails to appear. If, after the hearing, the commissioner 381
finds that the contractor or subcontractor has wilfully included a 382
materially false statement in his or her application for certification under 383
this subsection, the commissioner shall revoke or deny the certification 384
and may order that a civil penalty not exceeding ten thousand dollars 385
be imposed on the contractor or subcontractor. If such contractor or 386
subcontractor fails to appear for the hearing, the commissioner may, as 387
the facts require, revoke or deny the certification and order that a civil 388
penalty not exceeding ten thousand dollars be imposed on the 389
contractor or subcontractor. The commissioner shall send a copy of any 390
order issued pursuant to this subsection to the contractor or 391
subcontractor named in such order. The commissioner may cause 392
proceedings to be instituted by the Attorney General for the 393
enforcement of any order imposing a civil penalty issued under this 394
subsection. 395
(l) On or before August thirtieth of each year, each awarding agency 396
setting aside contracts or portions of contracts under subdivision (2) of 397
subsection (b) of this section shall prepare a report establishing small 398
[and] contractor, minority business enterprise and veteran-owned micro 399
business state set-aside program goals for the twelve-month period 400
beginning July first in the same year. Each such report shall be 401
submitted to the Commissioner of Administrative Services, the 402
Commission on Human Rights and Opportunities and the 403
cochairpersons and ranking members of the joint standing committees 404
of the General Assembly having cognizance of matters relating to 405
planning and development and government administration. 406
(m) On or before November first of each year and on a quarterly basis 407
thereafter, each awarding agency setting aside contracts or portions of 408
contracts under subdivision (2) of subsection (b) of this section shall 409
prepare a status report on the implementation and results of its small 410
business, [and] minority business enterprise and veteran-owned micro 411
business state set-aside program goals during the three-month period 412 Raised Bill No. 5400
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ending one month before the due date for the report. Each report shall 413
be submitted to the Commissioner of Administrative Services and the 414
Commission on Human Rights and Opportunities. Any awarding 415
agency that achieves less than fifty per cent of its small contractor, [and] 416
minority business enterprise and veteran-owned micro business state 417
set-aside program goals by the end of the second reporting period in 418
any twelve-month period beginning on July first shall provide a written 419
explanation to the Commissioner of Administrative Services and the 420
Commission on Human Rights and Opportunities detailing how the 421
awarding agency will achieve its goals in the final reporting period. The 422
Commission on Human Rights and Opportunities shall: (1) Monitor the 423
achievement of the annual goals established by each awarding agency; 424
and (2) prepare a quarterly report concerning such goal achievement. 425
The report shall be submitted to each awarding agency that submitted 426
a report, the Commissioner of Economic and Community Development, 427
the Commissioner of Administrative Services and the cochairpersons 428
and ranking members of the joint standing committees of the General 429
Assembly having cognizance of matters relating to planning and 430
development and government administration. Failure by any awarding 431
agency to submit any reports required by this section shall be a violation 432
of section 46a-77. 433
(n) Nothing in this section shall be construed to apply to the janitorial 434
or service contracts awarded pursuant to subsections (b) to (d), 435
inclusive, of section 4a-82. 436
(o) The Commissioner of Administrative Services may adopt 437
regulations in accordance with the provisions of chapter 54 to 438
implement the provisions of this section. 439
Sec. 3. Section 4a-60h of the general statutes is repealed and the 440
following is substituted in lieu thereof (Effective October 1, 2020): 441
(a) The Commissioner of Administrative Services shall be responsible 442
for the administration of the set-aside program for public works 443
contracts and state contracts for goods and services, as described in 444 Raised Bill No. 5400
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subdivision (2) of subsection (b) of section 4a-60g, as amended by this 445
act. The commissioner shall conduct regular training sessions, as often 446
as the commissioner deems necessary, for state agencies to explain the 447
state set-aside program and to specify the factors that must be addressed 448
in calculating awarding agency goals under the program. The 449
commissioner shall conduct informational workshops to inform 450
businesses of state set-aside opportunities and responsibilities. 451
(b) The Commission on Human Rights and Opportunities shall be 452
responsible for the administration of the set-aside program for 453
municipal public works contracts and contracts for quasi-public agency 454
projects, as described in subdivisions (3) and (4) of subsection (b) of 455
section 4a-60g, as amended by this act. The commission shall conduct 456
regular training sessions, as often as the commission deems necessary, 457
for municipalities, quasi-public agencies and contractors to explain the 458
municipal and quasi-public agency project set-aside program. The 459
commission may adopt regulations in accordance with the provisions of 460
chapter 54, to carry out the purposes of sections 4a-60g to 4a-60j, 461
inclusive, as amended by this act, in regard to the municipal and quasi-462
public agency project set-aside program. 463
(c) In any case where an individual contract is both a public works 464
contract of an awarding agency and a quasi-public agency project 465
contract, the provisions of this chapter governing awarding agency 466
public works contracts shall apply to such contract. 467
(d) The Commissioner of Administrative Services shall adopt 468
regulations in accordance with the provisions of chapter 54 to carry out 469
the purposes of sections 4a-60g to 4a-60j, inclusive, as amended by this 470
act, in regard to the state set-aside program. Such regulations shall 471
include (1) provisions concerning the application of the program to 472
individuals with a disability; (2) guidelines for a legally acceptable 473
format for, and content of, letters of credit authorized under subsection 474
(j) of section 4a-60g, as amended by this act; (3) procedures for random 475
site visits to the place of business of an applicant for certification at the 476
time of application and at subsequent times, as necessary, to ensure the 477 Raised Bill No. 5400
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integrity of the application process; and (4) time limits for approval or 478
disapproval of applications. 479
(e) (1) On or before January 1, 1994, the Commissioner of 480
Administrative Services shall, by regulations adopted in accordance 481
with chapter 54, establish a process to ensure that small contractors, 482
small businesses and minority business enterprises have fair access to 483
all competitive state contracts outside of the state set-aside program. 484
(2) On or before July 1, 2021, the Commissioner of Administrative 485
Services shall, by regulations adopted in accordance with chapter 54, 486
establish a process to ensure that veteran-owned micro businesses have 487
fair access to all competitive state contracts outside of the state set-aside 488
program. 489
Sec. 4. Section 4a-60j of the 2020 supplement to the general statutes is 490
repealed and the following is substituted in lieu thereof (Effective October 491
1, 2020): 492
A small contractor, minority business enterprise and veteran-owned 493
micro business shall receive payment on a contract awarded to [him or 494
her] such contractor, enterprise or business under the provisions of 495
sections 4a-60g to 4a-60i, inclusive, as amended by this act, no later than 496
twenty-five days from the due date of any such payment on such 497
contract. 498
Sec. 5. Subsection (a) of section 4a-57 of the general statutes is 499
repealed and the following is substituted in lieu thereof (Effective October 500
1, 2020): 501
(a) All purchases of, and contracts for, supplies, materials, equipment 502
and contractual services, except purchases and contracts made pursuant 503
to the provisions of subsection (b) of this section and public utility 504
services as provided in subsection (e) of this section shall be based, when 505
possible, on competitive bids or competitive negotiation. The 506
commissioner shall solicit competitive bids or proposals by providing 507
notice of the planned purchase in a form and manner that the 508 Raised Bill No. 5400
LCO No. 2239 17 of 35
commissioner determines will maximize public participation in the 509
competitive bidding or competitive negotiation process, including 510
participation by small contractors, minority business enterprises and 511
veteran-owned micro businesses, as defined in section 4a-60g, as 512
amended by this act, and promote competition. In the case of an 513
expenditure that is estimated to exceed fifty thousand dollars, such 514
notice shall be posted, not less than five calendar days before the final 515
date of submitting bids or proposals, on the State Contracting Portal. 516
Each notice of a planned purchase under this subsection shall indicate 517
the type of goods and services to be purchased and the estimated value 518
of the contract award. The notice shall also contain a notice of state 519
contract requirements concerning nondiscrimination and affirmative 520
action pursuant to section 4a-60 and, when applicable, requirements 521
concerning the awarding of contracts to small contractors, minority 522
business enterprises, veteran-owned micro businesses, individuals with 523
a disability and nonprofit corporations pursuant to section 4a-60g, as 524
amended by this act. Each bid and proposal shall be kept sealed or 525
secured until opened publicly at the time stated in the notice soliciting 526
such bid or proposal. 527
Sec. 6. Subsection (a) of section 4b-91 of the general statutes is 528
repealed and the following is substituted in lieu thereof (Effective October 529
1, 2020): 530
(a) (1) As used in this section, "prequalification classification" means 531
the prequalification classifications established by the Commissioner of 532
Administrative Services pursuant to section 4a-100, "public agency" has 533
the same meaning as provided in section 1-200, "awarding authority" 534
means the Department of Administrative Services, except "awarding 535
authority" means (A) the Joint Committee on Legislative Management, 536
in the case of a contract for the construction of or work on a building or 537
other public work under the supervision and control of the joint 538
committee, (B) a constituent unit of the state system of higher education, 539
in the case of a contract for the construction of or work on a building or 540
other public work under the supervision and control of such constituent 541
unit, or (C) the Military Department, in the case of a contract for the 542 Raised Bill No. 5400
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construction of or work on a building or other public work under the 543
supervision and control of said department and "community court 544
project", "downtown Hartford higher education center project", 545
"correctional facility project", "juvenile detention center project" and 546
"priority higher education facility project" have the same meanings as 547
provided in section 4b-55. 548
(2) Except as provided in subdivision (3) of this subsection, every 549
contract for the construction, reconstruction, alteration, remodeling, 550
repair or demolition of any public building or any other public work by 551
the state that is estimated to cost more than five hundred thousand 552
dollars shall be awarded to the lowest responsible and qualified general 553
bidder who is prequalified pursuant to section 4a-100 on the basis of 554
competitive bids in accordance with the procedures set forth in this 555
chapter, after the awarding authority has invited such bids by posting 556
notice on the State Contracting Portal. The awarding authority shall 557
indicate the prequalification classification required for the contract in 558
such notice. 559
(3) The requirements set forth in subdivision (2) of this subsection 560
shall not apply to (A) a public highway or bridge project or any other 561
construction project administered by the Department of Transportation, 562
or (B) a contract awarded by the Commissioner of Administrative 563
Services for (i) any public building or other public works project 564
administered by the Department of Administrative Services that is 565
estimated to cost one million five hundred thousand dollars or less, (ii) 566
a community court project, (iii) the downtown Hartford higher 567
education center project, (iv) a correctional facility project, (v) a juvenile 568
detention center project, or (vi) a student residential facility for the 569
Connecticut State University System that is a priority higher education 570
facility project. 571
(4) Every contract for the construction, reconstruction, alteration, 572
remodeling, repair or demolition of any public building or any other 573
public work by a public agency that is paid for, in whole or in part, with 574
state funds and that is estimated to cost more than five hundred 575 Raised Bill No. 5400
LCO No. 2239 19 of 35
thousand dollars shall be awarded to a bidder that is prequalified 576
pursuant to section 4a-100 after the public agency has invited such bids 577
by posting notice on the State Contracting Portal, except for (A) a public 578
highway or bridge project or any other construction p roject 579
administered by the Department of Transportation, or (B) any public 580
building or other public works project administered by the Department 581
of Administrative Services that is estimated to cost one million five 582
hundred thousand dollars or less. The awarding authority or public 583
agency, as the case may be, shall indicate the prequalification 584
classification required for the contract in such notice. 585
(5) (A) The Commissioner of Administrative Services may select 586
contractors to be on lists established for the purpose of providing 587
contractor services for the construction, reconstruction, alteration, 588
remodeling, repair or demolition of any public building or other public 589
works project administered by the Department of Administrative 590
Services involving an expense to the state of one million five hundred 591
thousand dollars or less. The commissioner shall use the 592
prequalification classifications established pursuant to section 4a-100 to 593
determine the specific categories of services that contractors may 594
perform after being selected in accordance with this subparagraph and 595
subparagraph (B) of this subdivision and awarded a contract in 596
accordance with subparagraph (C) of this subdivision. The 597
commissioner may establish a separate list for projects involving an 598
expense to the state of less than five hundred thousand dollars for the 599
purpose of selecting and utilizing the services of small contractors, [and] 600
minority business enterprises and veteran-owned micro businesses, as 601
such terms are defined in section 4a-60g, as amended by this act. 602
(B) The commissioner shall invite contractors to submit qualifications 603
for each specific category of services sought by the department by 604
posting notice of such invitation on the State Contracting Portal. The 605
notice shall be in the form determined by the commissioner, and shall 606
set forth the information that a contractor is required to submit to be 607
considered for selection. Upon receipt of the submittal from the 608
contractor, the commissioner shall select, for each specified category, 609 Raised Bill No. 5400
LCO No. 2239 20 of 35
those contractors who (i) are determined to be the most responsible and 610
qualified, as such terms are defined in section 4b-92, to perform the 611
work required under the specified category, (ii) have demonstrated the 612
skill, ability and integrity to fulfill contract obligations considering their 613
past performance, financial responsibility and experience with projects 614
of the size, scope and complexity required by the state under the 615
specified category, and (iii) for projects with a cost exceeding five 616
hundred thousand dollars, have the ability to obtain the requisite 617
bonding. The commissioner shall establish the duration that each list 618
remains in effect, which in no event may exceed three years. 619
(C) For any public building or public works project involving an 620
expense to the state of one million five hundred thousand dollars or less, 621
the commissioner shall invite bids from only those contractors selected 622
pursuant to subparagraphs (A) and (B) of this subdivision for the 623
specific category of services required for the particular project. The 624
commissioner shall determine the form of bid invitation, the manner of, 625
and time for, submission of bids, and the conditions and requirements 626
of such bids. The contract shall be awarded to the lowest responsible 627
and qualified bidder, subject to the provisions of sections 4b-92 and 4b-628
94. In the event that fewer than three bids are received in response to an 629
invitation to bid under this subdivision, or that all the bids are in excess 630
of the amount of available funds for the project, the commissioner may 631
negotiate a contract with any of the contractors submitting a bid, or 632
reject the bids received and rebid the project in accordance with this 633
section. 634
Sec. 7. Section 4-261 of the general statutes is repealed and the 635
following is substituted in lieu thereof (Effective October 1, 2020): 636
(a) Each public-private partnership project shall either be subject to 637
the prevailing wage requirements pursuant to section 31-53 or the rate 638
established by the use of a project labor agreement. The agency shall 639
provide notice of which requirement applies prior to soliciting bids or 640
proposals for such public-private partnership. 641 Raised Bill No. 5400
LCO No. 2239 21 of 35
(b) Each public-private partnership project shall comply with: (1) The 642
state's environmental policy requirements as set forth in sections 22a-1 643
and 22a-1a, (2) the requirements of the set-aside program for small 644
contractors, minority business enterprises and veteran-owned micro 645
businesses, as set forth in section 4a-60g, as amended by this act, and (3) 646
any applicable permitting or inspection requirements for projects of a 647
similar type, scope and size as set forth in the general statutes or the 648
local ordinances of the municipality where the project is to be located. 649
(c) Any agency that is subject to section 4e-16 shall comply with the 650
provisions of section 4e-16, provided, notwithstanding the provisions of 651
subsection (a) of section 4e-16, any agency that enters into a partnership 652
agreement concerning the operations or maintenance of a state facility 653
that meets the definition of a privatization contract, as defined in section 654
4e-1, as amended by this act, shall be subject to the requirements of 655
section 4e-16 regardless of whether such services are currently 656
privatized. 657
Sec. 8. Section 4e-1 of the general statutes is repealed and the 658
following is substituted in lieu thereof (Effective October 1, 2020): 659
For the purposes of sections 4e-1 to 4e-47, inclusive: 660
(1) "Best value selection" means a contract selection process in which 661
the award of a contract is based on a combination of quality, timeliness 662
and cost factors; 663
(2) "Bid" means an offer, submitted in response to an invitation to bid, 664
to furnish supplies, materials, equipment, construction or contractual 665
services to a state contracting agency under prescribed conditions at a 666
stated price; 667
(3) "Bidder" means a business submitting a bid in response to an 668
invitation to bid by a state contracting agency; 669
(4) "Business" means any individual or sole proprietorship, 670
partnership, firm, corporation, trust, limited liability company, limited 671 Raised Bill No. 5400
LCO No. 2239 22 of 35
liability partnership, joint stock company, joint venture, association or 672
other legal entity through which business for profit or not-for-profit is 673
conducted; 674
(5) "Competitive bidding" means the submission of prices by a 675
business competing for a contract to provide supplies, materials, 676
equipment or contractual services to a state contracting agency, under a 677
procedure in which the contracting authority does not negotiate prices, 678
as set forth in statutes and regulations concerning procurement; 679
(6) "Consultant" means (A) any architect, professional engineer, 680
landscape architect, land surveyor, accountant, interior designer, 681
environmental professional or construction administrator, who is 682
registered or licensed to practice such person's profession in accordance 683
with the applicable provisions of the general statutes, (B) any planner or 684
any environmental, management or financial specialist, or (C) any 685
person who performs professional work in areas including, but not 686
limited to, educational services, medical services, information 687
technology and real estate appraisal; 688
(7) "Consultant services" means those professional services rendered 689
by a consultant and any incidental services that a consultant and those 690
in the consultant's employ are authorized to perform; 691
(8) "Contract" or "state contract" means an agreement or a 692
combination or series of agreements between a state contracting agency 693
or quasi-public agency and a business for: 694
(A) A project for the construction, reconstruction, alteration, 695
remodeling, repair or demolition of any public building, public work, 696
mass transit, rail station, parking garage, rail track or airport; 697
(B) Services, including, but not limited to, consultant and professional 698
services; 699
(C) The acquisition or disposition of personal property; 700
(D) The provision of goods and services, including, but not limited 701 Raised Bill No. 5400
LCO No. 2239 23 of 35
to, the use of purchase of services contracts and personal service 702
agreements; 703
(E) The provision of information technology, state agency 704
information system or telecommunication system facilities, equipment 705
or services; 706
(F) A lease; or 707
(G) A licensing agreement; 708
"Contract" or "state contract" does not include a contract between a state 709
agency or a quasi-public agency and a political subdivision of the state; 710
(9) "Term contract" means the agreement reached when the state 711
accepts a bid or proposal to furnish supplies, materials, equipment or 712
contractual services at a stated price for a specific period of time in 713
response to an invitation to bid; 714
(10) "Contract risk assessment" means (A) the identification and 715
evaluation of loss exposures and risks, including, but not limited to, 716
business and legal risks associated with the contracting process and the 717
contracted goods and services, and (B) the identification, evaluation and 718
implementation of measures available to minimize potential loss 719
exposures and risks; 720
(11) "Contractor" means any business that is awarded, or is a 721
subcontractor under, a contract or an amendment to a contract with a 722
state contracting agency under statutes and regulations concerning 723
procurement, including, but not limited to, a small contractor, minority 724
business enterprise or veteran-owned micro business as defined in 725
section 4a-60g, as amended by this act, an individual with a disability, 726
as defined in section 4a-60, or an organization providing products and 727
services by persons with disabilities; 728
(12) "Contractual services" means the furnishing of labor by a 729
contractor, not involving the delivery of a specific end product other 730
than reports, which are merely incidental to the required performance 731 Raised Bill No. 5400
LCO No. 2239 24 of 35
and includes any and all laundry and cleaning service, pest control 732
service, janitorial service, security service, the rental and repair, or 733
maintenance, of equipment, machinery and other state-owned personal 734
property, advertising and photostating, mimeographing, human 735
services and other service arrangements where the services are 736
provided by persons other than state employees. "Contractual services" 737
includes the design, development and implementation of technology, 738
communications or telecommunications systems or the infrastructure 739
pertaining thereto, including hardware and software and services for 740
which a contractor is conferred a benefit by the state, whether or not 741
compensated by the state. "Contractual services" does not include 742
employment agreements or collective bargaining agreements; 743
(13) "Data" means recorded information, regardless of form or 744
characteristic; 745
(14) "Vote of two-thirds of the members of the board present and 746
voting" means a vote by the State Contracting Standards Board that is 747
agreed upon by two-thirds of the members of the State Contracting 748
Standards Board present and voting for a particular purpose and that 749
includes the vote of one member of the board appointed by a legislative 750
leader; 751
(15) "Electronic" means electrical, digital, magnetic, optical, 752
electromagnetic, or any other similar technology; 753
(16) "Emergency procurement" means procurement by a state 754
contracting agency, quasi-public agency, as defined in section 1-120, 755
judicial department or constituent unit of higher education that is made 756
necessary by a sudden, unexpected occurrence that poses a clear and 757
imminent danger to public safety or requires immediate action to 758
prevent or mitigate the loss or impairment of life, health, property or 759
essential public services or in response to a court order, settlement 760
agreement or other similar legal judgment; 761
(17) "Equipment" means personal property of a durable nature that 762
retains its identity throughout its useful life; 763 Raised Bill No. 5400
LCO No. 2239 25 of 35
(18) "Materials" means items required to perform a function or used 764
in a manufacturing process, particularly those incorporated into an end 765
product or consumed in its manufacture; 766
(19) "Nonprofit agency" means any organization that is not a for-767
profit business under Section 501(c)(3) of the Internal Revenue Code of 768
1986, or any subsequent corresponding internal revenue code of the 769
United States, as from time to time amended, makes no distribution to 770
its members, directors or officers and provides services contracted for 771
by (A) the state, or (B) a nonstate entity; 772
(20) "Professional services" means any type of service to the public 773
that requires that members of a profession rendering such service obtain 774
a license or other legal authorization as a condition precedent to the 775
rendition thereof, including, but not limited to, the professional services 776
of architects, professional engineers, or jointly by architects and 777
professional engineers, landscape architects, certified public 778
accountants and public accountants, land surveyors, attorneys-at-law, 779
psychologists, licensed marital and family therapists, licensed 780
professional counselors and licensed clinical social workers as well as 781
such other professional services described in section 33-182a; 782
(21) "Privatization contract" means an agreement or series of 783
agreements between a state contracting agency and a person or entity in 784
which such person or entity agrees to provide services that are 785
substantially similar to and in lieu of services provided, in whole or in 786
part, by state employees, other than contracts with a nonprofit agency, 787
which are in effect as of January 1, 2009, and which through a renewal, 788
modification, extension or rebidding of contracts continue to be 789
provided by a nonprofit agency; 790
(22) "Procurement" means contracting for, buying, purchasing, 791
renting, leasing or otherwise acquiring or disposing of, any supplies, 792
services, including but not limited to, contracts for purchase of services 793
and personal service agreements, interest in real property, or 794
construction, and includes all government functions that relate to such 795 Raised Bill No. 5400
LCO No. 2239 26 of 35
activities, including best value selection and qualification based 796
selection; 797
(23) "Proposer" means a business submitting a proposal to a state 798
contracting agency in response to a request for proposals or other 799
competitive sealed proposal; 800
(24) "Public record" means a public record, as defined in section 1-801
200; 802
(25) "Qualification based selection" means a contract selection process 803
in which the award of a contract is primarily based on an assessment of 804
contractor qualifications and on the negotiation of a fair and reasonable 805
price; 806
(26) "Regulation" means regulation, as defined in section 4-166; 807
(27) "Request for proposals" means all documents, whether attached 808
or incorporated by reference, utilized for soliciting proposals; 809
(28) "State contracting agency" means any executive branch agency, 810
board, commission, department, office, institution or council. "State 811
contracting agency" does not include the judicial branch, the legislative 812
branch, the offices of the Secretary of the State, the State Comptroller, 813
the Attorney General, the State Treasurer, with respect to their 814
constitutional functions, any state agency with respect to contracts 815
specific to the constitutional and statutory functions of the office of the 816
State Treasurer. For the purposes of section 4e-16, "state contracting 817
agency" includes any constituent unit of the state system of higher 818
education and for the purposes of section 4e-19, "state contracting 819
agency" includes the State Education Resource Center, established 820
under section 10-4q; 821
(29) "Subcontractor" means a subcontractor of a contractor for work 822
under a contract or an amendment to a contract; 823
(30) "Supplies" means any and all articles of personal property, 824
including, but not limited to, equipment, materials, printing, insurance 825 Raised Bill No. 5400
LCO No. 2239 27 of 35
and leases of real property, excluding land or a permanent interest in 826
land furnished to or used by any state agency; 827
(31) "Infrastructure facility" means a building, structure or network 828
of buildings, structures, pipes, controls and equipment that provide 829
transportation, utilities, public education or public safety services. 830
Infrastructure facility includes government office buildings, public 831
schools, jails, water treatment plants, distribution systems and pumping 832
stations, wastewater treatment plants, collections systems and pumping 833
stations, solid waste disposal plants, incinerators, landfills, and related 834
facilities, public roads and streets, highways, public parking facilities, 835
public transportation systems, terminals and rolling stock, rail, air and 836
water port structures, terminals and equipment; and 837
(32) "State employee" means state employee, as defined in section 5-838
154 and, for purposes of section 4e-16, state employee includes an 839
employee of any state contracting agency. 840
Sec. 9. Subsections (a) and (b) of section 4e-12 of the general statutes 841
are repealed and the following is substituted in lieu thereof (Effective 842
October 1, 2020): 843
(a) [On or before February 1, 2011, the] The judicial branch and the 844
legislative branch shall each prepare a procurement code applicable to 845
contracting expenditures, including, but not limited to, expenditures: (1) 846
Involving contracting and procurement processes for purchasing or 847
leasing of supplies, materials or equipment, consultant or consultant 848
services, personal service agreements or purchase of service 849
agreements; and (2) relating to contracts for the renovation, alteration or 850
repair of any judicial branch or legislative branch facility in accordance 851
with section 4b-1. 852
(b) The procurement codes described in subsection (a) of this section 853
shall be designed to: (1) Establish uniform contracting standards and 854
practices; (2) simplify and clarify contracting standards and 855
procurement policies and practices, including, but not limited to, 856
procedures for competitive sealed bids, competitive sealed proposals, 857 Raised Bill No. 5400
LCO No. 2239 28 of 35
small purchases, sole source procurements, emergency procurements 858
and special procurements; (3) ensure the fair and equitable treatment of 859
all businesses and persons who deal with the procurement system; (4) 860
include a process to maximize the use of small contractors, [and] 861
minority business enterprises and veteran-owned micro businesses, as 862
defined in section 4a-60g, as amended by this act; (5) provide increased 863
economy in procurement activities and maximize purchasing value to 864
the fullest extent possible; (6) ensure that the procurement of supplies, 865
materials, equipment, services, real property and construction is 866
obtained in a cost-effective and responsive manner; (7) include a process 867
to ensure contractor and judicial branch or legislative branch 868
accountability; and (8) provide a process for competitive sealed bids, 869
competitive sealed proposals, small purchases, sole source 870
procurements, emergency procurements, special procurements, best 871
value selection, qualification based selection and the conditions for their 872
use. 873
Sec. 10. Section 7-148u of the general statutes is repealed and the 874
following is substituted in lieu thereof (Effective October 1, 2020): 875
(a) As used in this section: 876
(1) "Small contractor" means any contractor, subcontractor, 877
manufacturer or service company (A) which has been doing business 878
and has maintained its principal place of business in the state for a 879
period of at least one year prior to the date of application for certification 880
under this section, (B) which had gross revenues not exceeding ten 881
million dollars in the most recently completed fiscal year prior to such 882
application, and (C) at least fifty-one per cent of the ownership of which 883
is held by a person or persons who are active in the daily affairs of the 884
business and have the power to direct the management and policies of 885
the business. 886
(2) "Minority business enterprise" means any small contractor (A) 887
fifty-one per cent or more of the capital stock, if any, or assets of which 888
are owned by a person or persons (i) who are active in the daily affairs 889 Raised Bill No. 5400
LCO No. 2239 29 of 35
of the enterprise, (ii) who have the power to direct the management and 890
policies of the enterprise, and (iii) who are members of a minority, as 891
such term is defined in subsection (a) of section 32-9n, or (B) who is an 892
individual with a disability. 893
(3) "Individual with a disability" means an individual (A) having a 894
physical impairment that substantially limits one or more of the major 895
life activities of the individual, or (B) having a record of such an 896
impairment. 897
(4) "Veteran-owned micro business" has the same meaning as 898
provided in section 4a-59, as amended by this act. 899
(b) Notwithstanding any provision of the general statutes or of any 900
special act or any municipal charter or home rule ordinance, a 901
municipality may, by ordinance, set aside in each fiscal year, for award 902
to small contractors, minority business enterprises and veteran-owned 903
micro businesses, on the basis of a competitive bidding procedure, 904
municipal contracts or portions of municipal contracts for the 905
construction, reconstruction or rehabilitation of public buildings, the 906
construction and maintenance of highways and the purchase of goods 907
and services. The total value of such contracts or portions thereof to be 908
set aside shall be not more than twenty-five per cent of the average of 909
the total value of all such contracts let by the municipality for each of 910
the previous three fiscal years, provided a contract that may not be set 911
aside due to a conflict with a federal law or regulation shall not be 912
included in the calculation of such average. Contracts or portions 913
thereof having a value of not less than twenty-five per cent of the total 914
value of all contracts or portions thereof to be set aside shall be reserved 915
for awards to minority business enterprises. 916
Sec. 11. Subsection (e) of section 8-169jj of the 2020 supplement to the 917
general statutes is repealed and the following is substituted in lieu 918
thereof (Effective October 1, 2020): 919
(e) The authority shall have the power to negotiate, and, with the 920
approval of the Secretary of the Office of Policy and Management, to 921 Raised Bill No. 5400
LCO No. 2239 30 of 35
enter into an agreement with any private developer, owner or lessee of 922
any building or improvement located on land in a development district 923
providing for payments to the authority in lieu of real property taxes. 924
Such an agreement shall be made a condition of any private right of 925
development within the development district, and shall include a 926
requirement that such private developer, owner or lessee make good 927
faith efforts to hire, or cause to be hired, available and qualified minority 928
business enterprises and veteran-owned micro businesses, as defined in 929
section 4a-60g, as amended by this act, to provide construction services 930
and materials for improvements to be constructed within the 931
development district in an effort to achieve (1) a minority business 932
enterprise utilization goal of ten per cent, and (2) a veteran-owned micro 933
business utilization goal of five per cent, of the total costs of construction 934
services and materials for such improvements. Such payments to the 935
authority in lieu of real property taxes shall have the same lien and 936
priority, and may be enforced by the authority in the same manner, as 937
provided for municipal real property taxes. Such payments as received 938
by the authority shall be used to carry out the purposes of the authority 939
set forth in subsection (a) of this section. 940
Sec. 12. Subsection (d) of section 8-169mm of the 2020 supplement to 941
the general statutes is repealed and the following is substituted in lieu 942
thereof (Effective October 1, 2020): 943
(d) The authority shall designate a contract compliance officer from 944
its staff to monitor compliance of the operations of facilities and parking 945
facilities associated with authority development projects that are under 946
the management or control of the authority, with (1) the provisions of 947
state law applicable to such operations, and (2) applicable requirements 948
of contracts entered into by the authority relating to set-asides for small 949
contractors, [and] minority business enterprises and veteran-owned 950
micro businesses, as defined in section 4a-60g, as amended by this act, 951
and required efforts to hire available and qualified members of 952
minorities, as defined in section 32-9n. Each year during the period of 953
operations of facilities associated with authority development projects, 954
such officer shall file a written report with the authority as to findings 955 Raised Bill No. 5400
LCO No. 2239 31 of 35
and recommendations regarding such compliance. 956
Sec. 13. Section 13a-95a of the general statutes is repealed and the 957
following is substituted in lieu thereof (Effective October 1, 2020): 958
The Commissioner of Transportation may, in the performance of his 959
duties under this title and title 13b and notwithstanding the provisions 960
of any general statute to the contrary, award contracts in a total amount 961
not in excess of fifteen million dollars and not in excess of five million 962
dollars per firm for any fiscal year, bidding for which shall be limited to 963
(1) "small business concerns owned and controlled by socially and 964
economically disadvantaged individuals" as defined in the federal Small 965
Business Act, 94 Stat. 2321 (1980) 15 USC 637, [and] (2) minority business 966
enterprises, as defined in section 4a-60g, as amended by this act, and (3) 967
veteran-owned micro businesses, as defined in section 4a-60g, as 968
amended by this act. The commissioner may expend an amount not in 969
excess of three hundred thousand dollars in any fiscal year for the 970
purpose of assisting such concerns in bidding on such contracts. Such 971
assistance shall include, but not be limited to, advice concerning 972
bonding, legal requirements of proper bidding, bid documents, 973
accounting requirements and other matters that will enable such 974
concerns to file a proper bid. 975
Sec. 14. Section 22a-263a of the general statutes is repealed and the 976
following is substituted in lieu thereof (Effective October 1, 2020): 977
The Materials Innovation and Recycling Authority shall make the 978
following information available to the public through the Internet, 979
except for any such information which is not required to be disclosed to 980
the public pursuant to the Freedom of Information Act, as defined in 981
section 1-200: 982
(1) The schedule of meetings of the board of directors of the authority 983
and each committee established by said board, not later than seven days 984
after such schedule is established; 985
(2) Draft minutes of each meeting of the board of directors of the 986 Raised Bill No. 5400
LCO No. 2239 32 of 35
authority and each committee established by said board, not later than 987
seven days after each such meeting is held; 988
(3) Each report required under section 4a-60g, as amended by this act, 989
setting forth small [and minority-business] contractor, minority 990
business enterprise and veteran-owned micro business set-aside 991
program goals and addressing the authority's progress in meeting said 992
goals, not later than seven days after each such report is required to be 993
submitted to the Commission on Human Rights and Opportunities 994
under [said] section 4a-60g, as amended by this act; 995
(4) The annual plan of operations which the authority is required to 996
prepare pursuant to section 22a-264, not later than seven days after the 997
plan is promulgated; 998
(5) Each report that the authority is required to submit to the General 999
Assembly pursuant to the general statutes, not later than seven days 1000
after the report is submitted; 1001
(6) Each audit of the authority conducted by the Auditors of Public 1002
Accounts, each compliance audit of the authority's activities conducted 1003
pursuant to section 1-122 and each audit conducted by an independent 1004
auditing firm, not later than seven days after each such audit is received 1005
by the board of directors of the authority; and 1006
(7) A report on any contract between the authority and a person, 1007
other than a director, officer or employee of the authority, for the 1008
purpose of influencing any legislative or administrative action on behalf 1009
of the authority or providing legal advice to the authority. The report 1010
shall indicate for each such contract (A) the names of the parties to the 1011
contract, (B) the cost of the contract, (C) the term of the contract, (D) a 1012
summary of the services to be provided under the contract, (E) the 1013
method used by the authority to award the contract, and (F) a summary 1014
of the authority's need for the services provided under the contract. 1015
Such report shall be made available through the Internet not later than 1016
fifteen days after the contract is entered into between the authority and 1017
the person. 1018 Raised Bill No. 5400
LCO No. 2239 33 of 35
Sec. 15. Subsection (a) of section 32-23o of the general statutes is 1019
repealed and the following is substituted in lieu thereof (Effective October 1020
1, 2020): 1021
(a) A Small Contractors' Revolving Loan Fund is created. In order to 1022
stimulate and encourage the growth and development of the state 1023
economy through the private enterprise of veteran-owned micro 1024
businesses, as defined in section 4a-60g, as amended by this act, and 1025
small contractors, the state, acting by the Department of Economic and 1026
Community Development, may provide working capital loans or 1027
provide lines of credit to veteran-owned micro businesses and small 1028
contractors from the Small Contractors' Revolving Loan Fund. For the 1029
purposes of this section, "small contractor" means contractors, 1030
subcontractors, minority business enterprises, manufacturers or service 1031
companies who have been doing business and have maintained their 1032
principal office and place of business in the state for a period of at least 1033
one year prior to the date of their application for assistance under this 1034
section, whose gross revenues in their most recently completed fiscal 1035
year did not exceed one million five hundred thousand dollars and 1036
which are considered small in accordance with such size standards as 1037
shall be established by regulations adopted by the department. In 1038
establishing such standards, the department shall consider the number 1039
of employees of the concern, provided any maximum number of 1040
employees which a small contractor may have under such definition 1041
shall vary from business to business to the extent necessary to reflect 1042
different characteristics of such business and to take proper account of 1043
other relevant factors. Not less than twenty-five per cent of the working 1044
capital loans and lines of credit provided under this section shall be 1045
made available to minority business enterprises and to veteran-owned 1046
micro businesses. The department shall charge and collect interest on 1047
each such working capital loan or line of credit at a rate to be determined 1048
in accordance with subsection (t) of section 3-20. In no event shall the 1049
total amount of such working capital loans or lines of credit provided to 1050
any single small contractor in any period of twelve consecutive months 1051
exceed two hundred thousand dollars. Payments made by small 1052 Raised Bill No. 5400
LCO No. 2239 34 of 35
contractors on all working capital loans and lines of credit paid to the 1053
Treasurer for deposit in the Small Contractors' Revolving Loan Fund 1054
shall be transferred to the Connecticut Growth Fund established under 1055
section 32-23v. The department shall promulgate rules and regulations 1056
in accordance with chapter 54 to carry out the provisions of this section. 1057
Such rules and regulations shall establish size standards for different 1058
types of small contractors, loan procedures, repayment terms, security 1059
requirements, default and remedy provisions and such other terms and 1060
conditions as the department shall deem appropriate. 1061
Sec. 16. Subsection (c) of section 32-605 of the general statutes is 1062
repealed and the following is substituted in lieu thereof (Effective October 1063
1, 2020): 1064
(c) The authority shall designate a contract compliance officer from 1065
the staff of the authority to monitor compliance of the operations of 1066
facilities under the management or control of the authority, the 1067
convention center, convention center hotel and related parking facilities 1068
of the center and the hotel, with the provisions of state law applicable to 1069
such operations, including, but not limited to, this section and sections 1070
32-650 to 32-668, inclusive, and with applicable requirements of 1071
contracts entered into by the authority, relating to set-asides for small 1072
contractors, [and] minority business enterprises and veteran-owned 1073
micro businesses, as defined in section 4a-60g, as amended by this act, 1074
and required efforts to hire available and qualified members of 1075
minorities, as defined in section 32-9n, and available and qualified 1076
residents of the city of Hartford for jobs in such operations. Such officer 1077
shall file, each year during the period of facility operations, a written 1078
report with the authority as to findings and recommendations regarding 1079
such compliance. 1080
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2020 4a-59(c)
Sec. 2 October 1, 2020 4a-60g
Sec. 3 October 1, 2020 4a-60h Raised Bill No. 5400
LCO No. 2239 35 of 35
Sec. 4 October 1, 2020 4a-60j
Sec. 5 October 1, 2020 4a-57(a)
Sec. 6 October 1, 2020 4b-91(a)
Sec. 7 October 1, 2020 4-261
Sec. 8 October 1, 2020 4e-1
Sec. 9 October 1, 2020 4e-12(a) and (b)
Sec. 10 October 1, 2020 7-148u
Sec. 11 October 1, 2020 8-169jj(e)
Sec. 12 October 1, 2020 8-169mm(d)
Sec. 13 October 1, 2020 13a-95a
Sec. 14 October 1, 2020 22a-263a
Sec. 15 October 1, 2020 32-23o(a)
Sec. 16 October 1, 2020 32-605(c)
Statement of Purpose:
To provide veteran-owned micro businesses with economic
opportunities.
[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.]