Connecticut 2020 Regular Session

Connecticut House Bill HB05400 Compare Versions

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88 General Assembly Raised Bill No. 5400
99 February Session, 2020
1010 LCO No. 2239
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1313 Referred to Committee on VETERANS' AFFAIRS
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1616 Introduced by:
1717 (VA)
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2020
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2222 AN ACT CONCERNING VE TERAN-OWNED MICRO BU SINESSES.
2323 Be it enacted by the Senate and House of Representatives in General
2424 Assembly convened:
2525
2626 Section 1. Subsection (c) of section 4a-59 of the general statutes is 1
2727 repealed and the following is substituted in lieu thereof (Effective October 2
2828 1, 2020): 3
2929 (c) All open market orders or contracts shall be awarded to (1) the 4
3030 lowest responsible qualified bidder, the qualities of the articles to be 5
3131 supplied, their conformity with the specifications, their suitability to the 6
3232 requirements of the state government and the delivery terms being 7
3333 taken into consideration and, at the discretion of the Commissioner of 8
3434 Administrative Services, life-cycle costs and trade-in or resale value of 9
3535 the articles may be considered where it appears to be in the best interest 10
3636 of the state, (2) the highest scoring bidder in a multiple criteria bid, in 11
3737 accordance with the criteria set forth in the bid solicitation for the 12
3838 contract, or (3) the proposer whose proposal is deemed by the awarding 13
3939 authority to be the most advantageous to the state, in accordance with 14
4040 the criteria set forth in the request for proposals, including price and 15
4141 evaluation factors. Notwithstanding any provision of the general 16 Raised Bill No. 5400
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4747 statutes to the contrary, each state agency awarding a contract through 17
4848 competitive negotiation shall include price as an explicit factor in the 18
4949 criteria in the request for proposals and for the contract award. In 19
5050 considering past performance of a bidder for the purpose of 20
5151 determining the "lowest responsible qualified bidder" or the "highest 21
5252 scoring bidder in a multiple criteria bid", the commissioner shall 22
5353 evaluate the skill, ability and integrity of the bidder in terms of the 23
5454 bidder's fulfillment of past contract obligations and the bidder's 24
5555 experience or lack of experience in delivering supplies, materials, 25
5656 equipment or contractual services of the size or amount for which bids 26
5757 have been solicited. In determining the lowest responsible qualified 27
5858 bidder for the purposes of this section, the commissioner may give a 28
5959 price preference of up to ten per cent for (A) the purchase of goods made 29
6060 with recycled materials or the purchase of recyclable or remanufactured 30
6161 products if the commissioner determines that such preference would 31
6262 promote recycling or remanufacturing. As used in this subsection, 32
6363 "recyclable" means able to be collected, separated or otherwise 33
6464 recovered from the solid waste stream for reuse, or for use in the 34
6565 manufacture or assembly of another package or product, by means of a 35
6666 recycling program which is reasonably available to at least seventy-five 36
6767 per cent of the state's population, "remanufactured" means restored to 37
6868 its original function and thereby diverted from the solid waste stream 38
6969 by retaining the bulk of components that have been used at least once 39
7070 and by replacing consumable components and "remanufacturing" 40
7171 means any process by which a product is remanufactured; (B) the 41
7272 purchase of motor vehicles powered by a clean alternative fuel; (C) the 42
7373 purchase of motor vehicles powered by fuel other than a clean 43
7474 alternative fuel and conversion equipment to convert such motor 44
7575 vehicles allowing the vehicles to be powered by either the exclusive use 45
7676 of clean alternative fuel or dual use of a clean alternative fuel and a fuel 46
7777 other than a clean alternative fuel. As used in this subsection, "clean 47
7878 alternative fuel" means natural gas, electricity, hydrogen or propane 48
7979 when used as a motor vehicle fuel; or (D) the purchase of goods or 49
8080 services from a micro business, except that, in the case of a veteran-50
8181 owned micro business, the commissioner may give a price preference of 51 Raised Bill No. 5400
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8787 [up to fifteen] ten per cent. As used in this subsection, "micro business" 52
8888 means a business with gross revenues not exceeding three million 53
8989 dollars in the most recently completed fiscal year, "veteran-owned micro 54
9090 business" means a micro business of which at least fifty-one per cent of 55
9191 the ownership is held by one or more veterans and "veteran" means any 56
9292 person (i) honorably discharged from, or released under honorable 57
9393 conditions from active service in, the armed forces, as defined in section 58
9494 27-103, or (ii) with a qualifying condition, as defined in said section, who 59
9595 has received a discharge other than bad conduct or dishonorable from 60
9696 active service in the armed forces. All other factors being equal, 61
9797 preference shall be given to supplies, materials and equipment 62
9898 produced, assembled or manufactured in the state and services 63
9999 originating and provided in the state. Except with regard to contracts 64
100100 that may be paid for with United States Department of Transportation 65
101101 funds, if any such bidder refuses to accept, within ten days, a contract 66
102102 awarded to such bidder, such contract may be awarded to the next 67
103103 lowest responsible qualified bidder or the next highest scoring bidder in 68
104104 a multiple criteria bid, whichever is applicable, and so on until such 69
105105 contract is awarded and accepted. Except with regard to contracts that 70
106106 may be paid for with United States Department of Transportation funds, 71
107107 if any such proposer refuses to accept, within ten days, a contract 72
108108 awarded to such proposer, such contract shall be awarded to the next 73
109109 most advantageous proposer, and so on until the contract is awarded 74
110110 and accepted. There shall be a written evaluation made of each bid. This 75
111111 evaluation shall identify the vendors and their respective costs and 76
112112 prices, document the reason why any vendor is deemed to be 77
113113 nonresponsive and recommend a vendor for award. A contract valued 78
114114 at one million dollars or more shall be awarded to a bidder other than 79
115115 the lowest responsible qualified bidder or the highest scoring bidder in 80
116116 a multiple criteria bid, whichever is applicable, only with written 81
117117 approval signed by the Commissioner of Administrative Services and 82
118118 by the Comptroller. The commissioner shall post on the department's 83
119119 Internet web site all awards made pursuant to the provisions of this 84
120120 section. 85 Raised Bill No. 5400
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126126 Sec. 2. Section 4a-60g of the 2020 supplement to the general statutes 86
127127 is repealed and the following is substituted in lieu thereof (Effective 87
128128 October 1, 2020): 88
129129 (a) As used in this section and sections 4a-60h to 4a-60j, inclusive, as 89
130130 amended by this act, the following terms have the following meanings: 90
131131 (1) "Small contractor" means any contractor, subcontractor, 91
132132 manufacturer, service company or nonprofit corporation (A) that 92
133133 maintains its principal place of business in the state, (B) that had gross 93
134134 revenues not exceeding twenty million dollars in the most recently 94
135135 completed fiscal year prior to such application, and (C) that is 95
136136 independent. "Small contractor" does not include any person who is 96
137137 affiliated with another person if both persons considered together have 97
138138 a gross revenue exceeding twenty million dollars. 98
139139 (2) "Independent" means the viability of the enterprise of the small 99
140140 contractor does not depend upon another person, as determined by an 100
141141 analysis of the small contractor's relationship with any other person in 101
142142 regards to the provision of personnel, facilities, equipment, other 102
143143 resources and financial support, including bonding. 103
144144 (3) "State agency" means each state board, commission, department, 104
145145 office, institution, council or other agency with the power to contract for 105
146146 goods or services itself or through its head. 106
147147 (4) "Minority business enterprise" means any small contractor, (A) 107
148148 fifty-one per cent or more of the capital stock, if any, or assets of which 108
149149 are owned by a person or persons who (i) exercise operational authority 109
150150 over the daily affairs of the enterprise, (ii) have the power to direct the 110
151151 management and policies and receive the beneficial interest of the 111
152152 enterprise, (iii) possess managerial and technical competence and 112
153153 experience directly related to the principal business activities of the 113
154154 enterprise, and (iv) are members of a minority, as such term is defined 114
155155 in subsection (a) of section 32-9n, or are individuals with a disability, or 115
156156 (B) which is a nonprofit corporation in which fifty-one per cent or more 116
157157 of the persons who (i) exercise operational authority over the enterprise, 117 Raised Bill No. 5400
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163163 (ii) possess managerial and technical competence and experience 118
164164 directly related to the principal business activities of the enterprise, (iii) 119
165165 have the power to direct the management and policies of the enterprise, 120
166166 and (iv) are members of a minority, as defined in this subsection, or are 121
167167 individuals with a disability. 122
168168 (5) "Affiliated" means the relationship in which a person directly, or 123
169169 indirectly through one or more intermediaries, controls, is controlled by 124
170170 or is under common control with another person. 125
171171 (6) "Control" means the power to direct or cause the direction of the 126
172172 management and policies of any person, whether through the 127
173173 ownership of voting securities, by contract or through any other direct 128
174174 or indirect means. Control shall be presumed to exist if any person, 129
175175 directly or indirectly, owns, controls, holds with the power to vote, or 130
176176 holds proxies representing, twenty per cent or more of any voting 131
177177 securities of another person. 132
178178 (7) "Person" means any individual, corporation, limited liability 133
179179 company, partnership, association, joint stock company, business trust, 134
180180 unincorporated organization or other entity. 135
181181 (8) "Individual with a disability" means an individual (A) having a 136
182182 physical or mental impairment that substantially limits one or more of 137
183183 the major life activities of the individual, which mental impairment may 138
184184 include, but is not limited to, having one or more mental disorders, as 139
185185 defined in the most recent edition of the American Psychiatric 140
186186 Association's "Diagnostic and Statistical Manual of Mental Disorders", 141
187187 or (B) having a record of such an impairment. 142
188188 (9) "Nonprofit corporation" means a nonprofit corporation 143
189189 incorporated pursuant to chapter 602 or any predecessor statutes 144
190190 thereto. 145
191191 (10) "Municipality" means any town, city, borough, consolidated 146
192192 town and city or consolidated town and borough. 147 Raised Bill No. 5400
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198198 (11) "Quasi-public agency" has the same meaning as provided in 148
199199 section 1-120. 149
200200 (12) "Awarding agency" means a state agency or political subdivision 150
201201 of the state other than a municipality. 151
202202 (13) "Public works contract" has the same meaning as provided in 152
203203 section 46a-68b. 153
204204 (14) "Municipal public works contract" means that portion of an 154
205205 agreement entered into on or after October 1, 2015, between any 155
206206 individual, firm or corporation and a municipality for the construction, 156
207207 rehabilitation, conversion, extension, demolition or repair of a public 157
208208 building, highway or other changes or improvements in real property, 158
209209 which is financed in whole or in part by the state, including, but not 159
210210 limited to, matching expenditures, grants, loans, insurance or 160
211211 guarantees but excluding any project of an alliance district, as defined 161
212212 in section 10-262u, financed by state funding in an amount equal to fifty 162
213213 thousand dollars or less. 163
214214 (15) "Quasi-public agency project" means the construction, 164
215215 rehabilitation, conversion, extension, demolition or repair of a building 165
216216 or other changes or improvements in real property pursuant to a 166
217217 contract entered into on or after October 1, 2015, which is financed in 167
218218 whole or in part by a quasi-public agency using state funds, including, 168
219219 but not limited to, matching expenditures, grants, loans, insurance or 169
220220 guarantees. 170
221221 (16) "Veteran-owned micro business" has the same meaning as 171
222222 provided in section 4a-59, as amended by this act. 172
223223 (b) (1) It is found and determined that there is a serious need to help 173
224224 small contractors, minority business enterprises, veteran-owned micro 174
225225 businesses, nonprofit organizations and individuals with disabilities to 175
226226 be considered for and awarded state contracts for the purchase of goods 176
227227 and services, public works contracts, municipal public works contracts 177
228228 and contracts for quasi-public agency projects. Accordingly, the 178 Raised Bill No. 5400
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234234 necessity of awarding such contracts in compliance with the provisions 179
235235 of this section, sections 4a-60h to 4a-60j, inclusive, as amended by this 180
236236 act, and sections 32-9i to 32-9p, inclusive, for advancement of the public 181
237237 benefit and good, is declared as a matter of legislative determination. 182
238238 (2) Notwithstanding any provisions of the general statutes, and 183
239239 except as set forth in this section, the head of each awarding agency shall 184
240240 set aside in each fiscal year, for award to small contractors, on the basis 185
241241 of competitive bidding procedures, contracts or portions of contracts for 186
242242 the construction, reconstruction or rehabilitation of public buildings, the 187
243243 construction and maintenance of highways and the purchase of goods 188
244244 and services. The total value of such contracts or portions thereof to be 189
245245 set aside by each such agency shall be at least twenty-five per cent of the 190
246246 total value of all contracts let by the head of such agency in each fiscal 191
247247 year, provided a contract for any goods or services which have been 192
248248 determined by the Commissioner of Administrative Services to be not 193
249249 customarily available from or supplied by small contractors shall not be 194
250250 included. Contracts or portions thereof having a value of not less than 195
251251 twenty-five per cent of the total value of all contracts or portions thereof 196
252252 to be set aside shall be reserved for awards to minority business 197
253253 enterprises. Contracts or portions thereof having a value of not less than 198
254254 five per cent of the total value of all contracts or portions thereof to be 199
255255 set aside shall be reserved for awards to veteran-owned micro 200
256256 businesses. 201
257257 (3) Notwithstanding any provision of the general statutes, and except 202
258258 as provided in this section, on and after October 1, 2015, each 203
259259 municipality when awarding a municipal public works contract shall 204
260260 state in its notice of solicitation for competitive bids or request for 205
261261 proposals or qualifications for such contract that the general or trade 206
262262 contractor shall be required to comply with the provisions of this section 207
263263 and the requirements concerning nondiscrimination and affirmative 208
264264 action under sections 4a-60 and 4a-60a. Any such contractor awarded a 209
265265 municipal public works contract shall, on the basis of competitive 210
266266 bidding procedures, (A) set aside at least twenty-five per cent of the total 211
267267 value of the state's financial assistance for such contract for award to 212 Raised Bill No. 5400
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273273 subcontractors who are small contractors, and (B) of that portion to be 213
274274 set aside in accordance with subparagraph (A) of this subdivision, 214
275275 reserve a portion equivalent to (i) twenty-five per cent of the total value 215
276276 of the contract or portion thereof to be set aside for awards to 216
277277 subcontractors who are minority business enterprises, and (ii) five per 217
278278 cent of the total value of the contract or portion thereof to be set aside 218
279279 for awards to subcontractors who are veteran-owned micro businesses. 219
280280 The provisions of this section shall not apply to any municipality that 220
281281 has established a set-aside program pursuant to section 7-148u, as 221
282282 amended by this act, where the percentage of contracts set aside for 222
283283 minority business enterprises [is] and veteran-owned micro businesses 223
284284 are equivalent to or exceeds the percentage set forth in this subsection. 224
285285 (4) Notwithstanding any provision of the general statutes, and except 225
286286 as provided in this section, on and after October 1, 2015, any individual, 226
287287 firm or corporation that enters into a contract for a quasi-public agency 227
288288 project shall, prior to awarding such contract, notify the contractor to be 228
289289 awarded such project of the requirements of this section and the 229
290290 requirements concerning nondiscrimination and affirmative action 230
291291 under sections 4a-60 and 4a-60a. Any such contractor awarded a 231
292292 contract for a quasi-public agency project shall, on the basis of 232
293293 competitive bidding procedures, (A) set aside at least twenty-five per 233
294294 cent of the total value of the state's financial assistance for such contract 234
295295 for award to subcontractors who are small contractors, and (B) of that 235
296296 portion to be set aside in accordance with subparagraph (A) of this 236
297297 subdivision, reserve a portion equivalent to (i) twenty-five per cent of 237
298298 the total value of the contract or portions thereof to be set aside for 238
299299 awards to subcontractors who are minority business enterprises, and (ii) 239
300300 five per cent of the total value of the contract or portions thereof to be 240
301301 set aside for awards to subcontractors who are veteran-owned micro 241
302302 businesses. 242
303303 (5) Eligibility of nonprofit corporations under the provisions of this 243
304304 section shall be limited to predevelopment contracts awarded by the 244
305305 Commissioner of Housing for housing projects. 245 Raised Bill No. 5400
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311311 (6) In calculating the percentage of contracts to be set aside under 246
312312 subdivisions (2) to (4), inclusive, of this subsection, the awarding agency 247
313313 or contractor shall exclude any contract that may not be set aside due to 248
314314 a conflict with a federal law or regulation. 249
315315 (c) The head of any awarding agency may, in lieu of setting aside any 250
316316 contract or portions thereof, require any general or trade contractor or 251
317317 any other entity authorized by such agency to award contracts, to set 252
318318 aside a portion of any contract for subcontractors who are eligible for 253
319319 set-aside contracts under this section. Nothing in this subsection shall 254
320320 be construed to diminish the total value of contracts which are required 255
321321 to be set aside by any awarding agency pursuant to this section. 256
322322 (d) The head of each awarding agency shall notify the Commissioner 257
323323 of Administrative Services of all contracts to be set aside pursuant to 258
324324 subdivision (2) of subsection (b) or subsection (c) of this section at the 259
325325 time that bid documents for such contracts are made available to 260
326326 potential contractors. 261
327327 (e) The awarding authority shall require that a contractor or 262
328328 subcontractor awarded a contract or a portion of a contract under this 263
329329 section perform not less than thirty per cent of the work with the 264
330330 workforces of such contractor or subcontractor and shall require that not 265
331331 less than fifty per cent of the work be performed by contractors or 266
332332 subcontractors eligible for awards under this section. A contractor 267
333333 awarded a contract or a portion of a contract under this section shall not 268
334334 subcontract with any person with whom the contractor is affiliated. No 269
335335 person who is affiliated with another person shall be eligible for awards 270
336336 under this section if both affiliated persons considered together would 271
337337 not qualify as a small contractor, [or] a minority business enterprise or 272
338338 a veteran-owned micro business under subsection (a) of this section. The 273
339339 awarding authority shall require that a contractor awarded a contract 274
340340 pursuant to this section submit, in writing, an explanation of any 275
341341 subcontract to such contract that is entered into with any person that is 276
342342 not eligible for the award of a contract pursuant to this section, prior to 277
343343 the performance of any work pursuant to such subcontract. 278 Raised Bill No. 5400
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349349 (f) The awarding authority may require that a contractor or 279
350350 subcontractor awarded a contract or a portion of a contract under this 280
351351 section furnish the following documentation: (1) A copy of the certificate 281
352352 of incorporation, certificate of limited partnership, partnership 282
353353 agreement or other organizational documents of the contractor or 283
354354 subcontractor; (2) a copy of federal income tax returns filed by the 284
355355 contractor or subcontractor for the previous year; and (3) evidence of 285
356356 payment of fair market value for the purchase or lease by the contractor 286
357357 or subcontractor of property or equipment from another contractor who 287
358358 is not eligible for set-aside contracts under this section. 288
359359 (g) The awarding authority or the Commissioner of Administrative 289
360360 Services or the Commission on Human Rights and Opportunities may 290
361361 conduct an audit of the financial, corporate and business records and 291
362362 conduct an investigation of any small contractor, [or] minority business 292
363363 enterprise [which] or veteran-owned micro business that applies for or 293
364364 is awarded a set-aside contract for the purpose of determining eligibility 294
365365 for awards or compliance with the requirements established under this 295
366366 section. 296
367367 (h) The provisions of this section shall not apply to (1) any awarding 297
368368 agency for which the total value of all contracts or portions of contracts 298
369369 of the types enumerated in subdivision (2) of subsection (b) of this 299
370370 section is anticipated to be equal to ten thousand dollars or less, or (2) 300
371371 any municipal public works contract or contract for a quasi-public 301
372372 agency project for which the total value of the contract is anticipated to 302
373373 be equal to fifty thousand dollars or less. 303
374374 (i) In lieu of a performance, bid, labor and materials or other required 304
375375 bond, a contractor or subcontractor awarded a contract under this 305
376376 section may provide to the awarding authority, and the awarding 306
377377 authority shall accept a letter of credit. Any such letter of credit shall be 307
378378 in an amount equal to ten per cent of the contract for any contract that 308
379379 is less than one hundred thousand dollars and in an amount equal to 309
380380 twenty-five per cent of the contract for any contract that exceeds one 310
381381 hundred thousand dollars. 311 Raised Bill No. 5400
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387387 (j) (1) Whenever the awarding agency has reason to believe that any 312
388388 contractor or subcontractor awarded a state set-aside contract has 313
389389 wilfully violated any provision of this section, the awarding agency 314
390390 shall send a notice to such contractor or subcontractor by certified mail, 315
391391 return receipt requested. Such notice shall include: (A) A reference to 316
392392 the provision alleged to be violated; (B) a short and plain statement of 317
393393 the matter asserted; (C) the maximum civil penalty that may be imposed 318
394394 for such violation; and (D) the time and place for the hearing. Such 319
395395 hearing shall be fixed for a date not earlier than fourteen days after the 320
396396 notice is mailed. The awarding agency shall send a copy of such notice 321
397397 to the Commission on Human Rights and Opportunities. 322
398398 (2) The awarding agency shall hold a hearing on the violation 323
399399 asserted unless such contractor or subcontractor fails to appear. The 324
400400 hearing shall be held in accordance with the provisions of chapter 54. If, 325
401401 after the hearing, the awarding agency finds that the contractor or 326
402402 subcontractor has wilfully violated any provision of this section, the 327
403403 awarding agency shall suspend all set-aside contract payments to the 328
404404 contractor or subcontractor and may, in its discretion, order that a civil 329
405405 penalty not exceeding ten thousand dollars per violation be imposed on 330
406406 the contractor or subcontractor. If such contractor or subcontractor fails 331
407407 to appear for the hearing, the awarding agency may, as the facts require, 332
408408 order that a civil penalty not exceeding ten thousand dollars per 333
409409 violation be imposed on the contractor or subcontractor. The awarding 334
410410 agency shall send a copy of any order issued pursuant to this subsection 335
411411 by certified mail, return receipt requested, to the contractor or 336
412412 subcontractor named in such order. The awarding agency may cause 337
413413 proceedings to be instituted by the Attorney General for the 338
414414 enforcement of any order imposing a civil penalty issued under this 339
415415 subsection. 340
416416 (k) (1) (A) On or before January 1, 2000, the Commissioner of 341
417417 Administrative Services shall establish a process for certification of 342
418418 small contractors and minority business enterprises as eligible for set-343
419419 aside contracts. (B) On or before January 1, 2021, the Commissioner of 344
420420 Administrative Services shall establish a process for certification of 345 Raised Bill No. 5400
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426426 veteran-owned micro businesses as eligible for set-aside contracts. (C) 346
427427 Each certification shall be valid for a period not to exceed two years, 347
428428 unless the Commissioner of Administrative Services determines that an 348
429429 extension of such certification is warranted, provided any such 349
430430 extension shall not exceed a period of six months from such 350
431431 certification's original expiration date. Any paper application for 351
432432 certification shall be no longer than six pages. (D) The Department of 352
433433 Administrative Services shall maintain on its web site an updated 353
434434 directory of small contractors, [and] minority business enterprises and 354
435435 veteran-owned micro businesses certified under this section. 355
436436 (2) The Commissioner of Administrative Services may deny an 356
437437 application for the initial issuance or renewal of such certification after 357
438438 issuing a written decision to the applicant setting forth the basis for such 358
439439 denial. The commissioner may revoke such certification for cause after 359
440440 notice and an opportunity for a hearing in accordance with the 360
441441 provisions of chapter 54. Any person aggrieved by the commissioner's 361
442442 decision to deny the issuance or renewal of or to revoke such 362
443443 certification may appeal such decision to the Superior Court, in 363
444444 accordance with the provisions of section 4-183. 364
445445 (3) Whenever the Commissioner of Administrative Services has 365
446446 reason to believe that a small contractor, [or] minority business 366
447447 enterprise [who] or veteran-owned micro business that has applied for 367
448448 or received certification under this section has included a materially 368
449449 false statement in [his or her] its application, the commissioner may 369
450450 impose a penalty not exceeding ten thousand dollars after notice and a 370
451451 hearing held in accordance with chapter 54. Such notice shall include 371
452452 (A) a reference to the statement or statements contained in the 372
453453 application alleged to be false, (B) the maximum civil penalty that may 373
454454 be imposed for such misrepresentation, and (C) the time and place of 374
455455 the hearing. Such hearing shall be fixed for a date not later than fourteen 375
456456 days from the date such notice is sent. The commissioner shall send a 376
457457 copy of such notice to the Commission on Human Rights and 377
458458 Opportunities. 378 Raised Bill No. 5400
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464464 (4) The commissioner shall hold a hearing prior to such revocation or 379
465465 denial or the imposition of a penalty, unless such contractor or 380
466466 subcontractor fails to appear. If, after the hearing, the commissioner 381
467467 finds that the contractor or subcontractor has wilfully included a 382
468468 materially false statement in his or her application for certification under 383
469469 this subsection, the commissioner shall revoke or deny the certification 384
470470 and may order that a civil penalty not exceeding ten thousand dollars 385
471471 be imposed on the contractor or subcontractor. If such contractor or 386
472472 subcontractor fails to appear for the hearing, the commissioner may, as 387
473473 the facts require, revoke or deny the certification and order that a civil 388
474474 penalty not exceeding ten thousand dollars be imposed on the 389
475475 contractor or subcontractor. The commissioner shall send a copy of any 390
476476 order issued pursuant to this subsection to the contractor or 391
477477 subcontractor named in such order. The commissioner may cause 392
478478 proceedings to be instituted by the Attorney General for the 393
479479 enforcement of any order imposing a civil penalty issued under this 394
480480 subsection. 395
481481 (l) On or before August thirtieth of each year, each awarding agency 396
482482 setting aside contracts or portions of contracts under subdivision (2) of 397
483483 subsection (b) of this section shall prepare a report establishing small 398
484484 [and] contractor, minority business enterprise and veteran-owned micro 399
485485 business state set-aside program goals for the twelve-month period 400
486486 beginning July first in the same year. Each such report shall be 401
487487 submitted to the Commissioner of Administrative Services, the 402
488488 Commission on Human Rights and Opportunities and the 403
489489 cochairpersons and ranking members of the joint standing committees 404
490490 of the General Assembly having cognizance of matters relating to 405
491491 planning and development and government administration. 406
492492 (m) On or before November first of each year and on a quarterly basis 407
493493 thereafter, each awarding agency setting aside contracts or portions of 408
494494 contracts under subdivision (2) of subsection (b) of this section shall 409
495495 prepare a status report on the implementation and results of its small 410
496496 business, [and] minority business enterprise and veteran-owned micro 411
497497 business state set-aside program goals during the three-month period 412 Raised Bill No. 5400
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503503 ending one month before the due date for the report. Each report shall 413
504504 be submitted to the Commissioner of Administrative Services and the 414
505505 Commission on Human Rights and Opportunities. Any awarding 415
506506 agency that achieves less than fifty per cent of its small contractor, [and] 416
507507 minority business enterprise and veteran-owned micro business state 417
508508 set-aside program goals by the end of the second reporting period in 418
509509 any twelve-month period beginning on July first shall provide a written 419
510510 explanation to the Commissioner of Administrative Services and the 420
511511 Commission on Human Rights and Opportunities detailing how the 421
512512 awarding agency will achieve its goals in the final reporting period. The 422
513513 Commission on Human Rights and Opportunities shall: (1) Monitor the 423
514514 achievement of the annual goals established by each awarding agency; 424
515515 and (2) prepare a quarterly report concerning such goal achievement. 425
516516 The report shall be submitted to each awarding agency that submitted 426
517517 a report, the Commissioner of Economic and Community Development, 427
518518 the Commissioner of Administrative Services and the cochairpersons 428
519519 and ranking members of the joint standing committees of the General 429
520520 Assembly having cognizance of matters relating to planning and 430
521521 development and government administration. Failure by any awarding 431
522522 agency to submit any reports required by this section shall be a violation 432
523523 of section 46a-77. 433
524524 (n) Nothing in this section shall be construed to apply to the janitorial 434
525525 or service contracts awarded pursuant to subsections (b) to (d), 435
526526 inclusive, of section 4a-82. 436
527527 (o) The Commissioner of Administrative Services may adopt 437
528528 regulations in accordance with the provisions of chapter 54 to 438
529529 implement the provisions of this section. 439
530530 Sec. 3. Section 4a-60h of the general statutes is repealed and the 440
531531 following is substituted in lieu thereof (Effective October 1, 2020): 441
532532 (a) The Commissioner of Administrative Services shall be responsible 442
533533 for the administration of the set-aside program for public works 443
534534 contracts and state contracts for goods and services, as described in 444 Raised Bill No. 5400
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538538 LCO No. 2239 15 of 35
539539
540540 subdivision (2) of subsection (b) of section 4a-60g, as amended by this 445
541541 act. The commissioner shall conduct regular training sessions, as often 446
542542 as the commissioner deems necessary, for state agencies to explain the 447
543543 state set-aside program and to specify the factors that must be addressed 448
544544 in calculating awarding agency goals under the program. The 449
545545 commissioner shall conduct informational workshops to inform 450
546546 businesses of state set-aside opportunities and responsibilities. 451
547547 (b) The Commission on Human Rights and Opportunities shall be 452
548548 responsible for the administration of the set-aside program for 453
549549 municipal public works contracts and contracts for quasi-public agency 454
550550 projects, as described in subdivisions (3) and (4) of subsection (b) of 455
551551 section 4a-60g, as amended by this act. The commission shall conduct 456
552552 regular training sessions, as often as the commission deems necessary, 457
553553 for municipalities, quasi-public agencies and contractors to explain the 458
554554 municipal and quasi-public agency project set-aside program. The 459
555555 commission may adopt regulations in accordance with the provisions of 460
556556 chapter 54, to carry out the purposes of sections 4a-60g to 4a-60j, 461
557557 inclusive, as amended by this act, in regard to the municipal and quasi-462
558558 public agency project set-aside program. 463
559559 (c) In any case where an individual contract is both a public works 464
560560 contract of an awarding agency and a quasi-public agency project 465
561561 contract, the provisions of this chapter governing awarding agency 466
562562 public works contracts shall apply to such contract. 467
563563 (d) The Commissioner of Administrative Services shall adopt 468
564564 regulations in accordance with the provisions of chapter 54 to carry out 469
565565 the purposes of sections 4a-60g to 4a-60j, inclusive, as amended by this 470
566566 act, in regard to the state set-aside program. Such regulations shall 471
567567 include (1) provisions concerning the application of the program to 472
568568 individuals with a disability; (2) guidelines for a legally acceptable 473
569569 format for, and content of, letters of credit authorized under subsection 474
570570 (j) of section 4a-60g, as amended by this act; (3) procedures for random 475
571571 site visits to the place of business of an applicant for certification at the 476
572572 time of application and at subsequent times, as necessary, to ensure the 477 Raised Bill No. 5400
573573
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576576 LCO No. 2239 16 of 35
577577
578578 integrity of the application process; and (4) time limits for approval or 478
579579 disapproval of applications. 479
580580 (e) (1) On or before January 1, 1994, the Commissioner of 480
581581 Administrative Services shall, by regulations adopted in accordance 481
582582 with chapter 54, establish a process to ensure that small contractors, 482
583583 small businesses and minority business enterprises have fair access to 483
584584 all competitive state contracts outside of the state set-aside program. 484
585585 (2) On or before July 1, 2021, the Commissioner of Administrative 485
586586 Services shall, by regulations adopted in accordance with chapter 54, 486
587587 establish a process to ensure that veteran-owned micro businesses have 487
588588 fair access to all competitive state contracts outside of the state set-aside 488
589589 program. 489
590590 Sec. 4. Section 4a-60j of the 2020 supplement to the general statutes is 490
591591 repealed and the following is substituted in lieu thereof (Effective October 491
592592 1, 2020): 492
593593 A small contractor, minority business enterprise and veteran-owned 493
594594 micro business shall receive payment on a contract awarded to [him or 494
595595 her] such contractor, enterprise or business under the provisions of 495
596596 sections 4a-60g to 4a-60i, inclusive, as amended by this act, no later than 496
597597 twenty-five days from the due date of any such payment on such 497
598598 contract. 498
599599 Sec. 5. Subsection (a) of section 4a-57 of the general statutes is 499
600600 repealed and the following is substituted in lieu thereof (Effective October 500
601601 1, 2020): 501
602602 (a) All purchases of, and contracts for, supplies, materials, equipment 502
603603 and contractual services, except purchases and contracts made pursuant 503
604604 to the provisions of subsection (b) of this section and public utility 504
605605 services as provided in subsection (e) of this section shall be based, when 505
606606 possible, on competitive bids or competitive negotiation. The 506
607607 commissioner shall solicit competitive bids or proposals by providing 507
608608 notice of the planned purchase in a form and manner that the 508 Raised Bill No. 5400
609609
610610
611611
612612 LCO No. 2239 17 of 35
613613
614614 commissioner determines will maximize public participation in the 509
615615 competitive bidding or competitive negotiation process, including 510
616616 participation by small contractors, minority business enterprises and 511
617617 veteran-owned micro businesses, as defined in section 4a-60g, as 512
618618 amended by this act, and promote competition. In the case of an 513
619619 expenditure that is estimated to exceed fifty thousand dollars, such 514
620620 notice shall be posted, not less than five calendar days before the final 515
621621 date of submitting bids or proposals, on the State Contracting Portal. 516
622622 Each notice of a planned purchase under this subsection shall indicate 517
623623 the type of goods and services to be purchased and the estimated value 518
624624 of the contract award. The notice shall also contain a notice of state 519
625625 contract requirements concerning nondiscrimination and affirmative 520
626626 action pursuant to section 4a-60 and, when applicable, requirements 521
627627 concerning the awarding of contracts to small contractors, minority 522
628628 business enterprises, veteran-owned micro businesses, individuals with 523
629629 a disability and nonprofit corporations pursuant to section 4a-60g, as 524
630630 amended by this act. Each bid and proposal shall be kept sealed or 525
631631 secured until opened publicly at the time stated in the notice soliciting 526
632632 such bid or proposal. 527
633633 Sec. 6. Subsection (a) of section 4b-91 of the general statutes is 528
634634 repealed and the following is substituted in lieu thereof (Effective October 529
635635 1, 2020): 530
636636 (a) (1) As used in this section, "prequalification classification" means 531
637637 the prequalification classifications established by the Commissioner of 532
638638 Administrative Services pursuant to section 4a-100, "public agency" has 533
639639 the same meaning as provided in section 1-200, "awarding authority" 534
640640 means the Department of Administrative Services, except "awarding 535
641641 authority" means (A) the Joint Committee on Legislative Management, 536
642642 in the case of a contract for the construction of or work on a building or 537
643643 other public work under the supervision and control of the joint 538
644644 committee, (B) a constituent unit of the state system of higher education, 539
645645 in the case of a contract for the construction of or work on a building or 540
646646 other public work under the supervision and control of such constituent 541
647647 unit, or (C) the Military Department, in the case of a contract for the 542 Raised Bill No. 5400
648648
649649
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651651 LCO No. 2239 18 of 35
652652
653653 construction of or work on a building or other public work under the 543
654654 supervision and control of said department and "community court 544
655655 project", "downtown Hartford higher education center project", 545
656656 "correctional facility project", "juvenile detention center project" and 546
657657 "priority higher education facility project" have the same meanings as 547
658658 provided in section 4b-55. 548
659659 (2) Except as provided in subdivision (3) of this subsection, every 549
660660 contract for the construction, reconstruction, alteration, remodeling, 550
661661 repair or demolition of any public building or any other public work by 551
662662 the state that is estimated to cost more than five hundred thousand 552
663663 dollars shall be awarded to the lowest responsible and qualified general 553
664664 bidder who is prequalified pursuant to section 4a-100 on the basis of 554
665665 competitive bids in accordance with the procedures set forth in this 555
666666 chapter, after the awarding authority has invited such bids by posting 556
667667 notice on the State Contracting Portal. The awarding authority shall 557
668668 indicate the prequalification classification required for the contract in 558
669669 such notice. 559
670670 (3) The requirements set forth in subdivision (2) of this subsection 560
671671 shall not apply to (A) a public highway or bridge project or any other 561
672672 construction project administered by the Department of Transportation, 562
673673 or (B) a contract awarded by the Commissioner of Administrative 563
674674 Services for (i) any public building or other public works project 564
675675 administered by the Department of Administrative Services that is 565
676676 estimated to cost one million five hundred thousand dollars or less, (ii) 566
677677 a community court project, (iii) the downtown Hartford higher 567
678678 education center project, (iv) a correctional facility project, (v) a juvenile 568
679679 detention center project, or (vi) a student residential facility for the 569
680680 Connecticut State University System that is a priority higher education 570
681681 facility project. 571
682682 (4) Every contract for the construction, reconstruction, alteration, 572
683683 remodeling, repair or demolition of any public building or any other 573
684684 public work by a public agency that is paid for, in whole or in part, with 574
685685 state funds and that is estimated to cost more than five hundred 575 Raised Bill No. 5400
686686
687687
688688
689689 LCO No. 2239 19 of 35
690690
691691 thousand dollars shall be awarded to a bidder that is prequalified 576
692692 pursuant to section 4a-100 after the public agency has invited such bids 577
693693 by posting notice on the State Contracting Portal, except for (A) a public 578
694694 highway or bridge project or any other construction p roject 579
695695 administered by the Department of Transportation, or (B) any public 580
696696 building or other public works project administered by the Department 581
697697 of Administrative Services that is estimated to cost one million five 582
698698 hundred thousand dollars or less. The awarding authority or public 583
699699 agency, as the case may be, shall indicate the prequalification 584
700700 classification required for the contract in such notice. 585
701701 (5) (A) The Commissioner of Administrative Services may select 586
702702 contractors to be on lists established for the purpose of providing 587
703703 contractor services for the construction, reconstruction, alteration, 588
704704 remodeling, repair or demolition of any public building or other public 589
705705 works project administered by the Department of Administrative 590
706706 Services involving an expense to the state of one million five hundred 591
707707 thousand dollars or less. The commissioner shall use the 592
708708 prequalification classifications established pursuant to section 4a-100 to 593
709709 determine the specific categories of services that contractors may 594
710710 perform after being selected in accordance with this subparagraph and 595
711711 subparagraph (B) of this subdivision and awarded a contract in 596
712712 accordance with subparagraph (C) of this subdivision. The 597
713713 commissioner may establish a separate list for projects involving an 598
714714 expense to the state of less than five hundred thousand dollars for the 599
715715 purpose of selecting and utilizing the services of small contractors, [and] 600
716716 minority business enterprises and veteran-owned micro businesses, as 601
717717 such terms are defined in section 4a-60g, as amended by this act. 602
718718 (B) The commissioner shall invite contractors to submit qualifications 603
719719 for each specific category of services sought by the department by 604
720720 posting notice of such invitation on the State Contracting Portal. The 605
721721 notice shall be in the form determined by the commissioner, and shall 606
722722 set forth the information that a contractor is required to submit to be 607
723723 considered for selection. Upon receipt of the submittal from the 608
724724 contractor, the commissioner shall select, for each specified category, 609 Raised Bill No. 5400
725725
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729729
730730 those contractors who (i) are determined to be the most responsible and 610
731731 qualified, as such terms are defined in section 4b-92, to perform the 611
732732 work required under the specified category, (ii) have demonstrated the 612
733733 skill, ability and integrity to fulfill contract obligations considering their 613
734734 past performance, financial responsibility and experience with projects 614
735735 of the size, scope and complexity required by the state under the 615
736736 specified category, and (iii) for projects with a cost exceeding five 616
737737 hundred thousand dollars, have the ability to obtain the requisite 617
738738 bonding. The commissioner shall establish the duration that each list 618
739739 remains in effect, which in no event may exceed three years. 619
740740 (C) For any public building or public works project involving an 620
741741 expense to the state of one million five hundred thousand dollars or less, 621
742742 the commissioner shall invite bids from only those contractors selected 622
743743 pursuant to subparagraphs (A) and (B) of this subdivision for the 623
744744 specific category of services required for the particular project. The 624
745745 commissioner shall determine the form of bid invitation, the manner of, 625
746746 and time for, submission of bids, and the conditions and requirements 626
747747 of such bids. The contract shall be awarded to the lowest responsible 627
748748 and qualified bidder, subject to the provisions of sections 4b-92 and 4b-628
749749 94. In the event that fewer than three bids are received in response to an 629
750750 invitation to bid under this subdivision, or that all the bids are in excess 630
751751 of the amount of available funds for the project, the commissioner may 631
752752 negotiate a contract with any of the contractors submitting a bid, or 632
753753 reject the bids received and rebid the project in accordance with this 633
754754 section. 634
755755 Sec. 7. Section 4-261 of the general statutes is repealed and the 635
756756 following is substituted in lieu thereof (Effective October 1, 2020): 636
757757 (a) Each public-private partnership project shall either be subject to 637
758758 the prevailing wage requirements pursuant to section 31-53 or the rate 638
759759 established by the use of a project labor agreement. The agency shall 639
760760 provide notice of which requirement applies prior to soliciting bids or 640
761761 proposals for such public-private partnership. 641 Raised Bill No. 5400
762762
763763
764764
765765 LCO No. 2239 21 of 35
766766
767767 (b) Each public-private partnership project shall comply with: (1) The 642
768768 state's environmental policy requirements as set forth in sections 22a-1 643
769769 and 22a-1a, (2) the requirements of the set-aside program for small 644
770770 contractors, minority business enterprises and veteran-owned micro 645
771771 businesses, as set forth in section 4a-60g, as amended by this act, and (3) 646
772772 any applicable permitting or inspection requirements for projects of a 647
773773 similar type, scope and size as set forth in the general statutes or the 648
774774 local ordinances of the municipality where the project is to be located. 649
775775 (c) Any agency that is subject to section 4e-16 shall comply with the 650
776776 provisions of section 4e-16, provided, notwithstanding the provisions of 651
777777 subsection (a) of section 4e-16, any agency that enters into a partnership 652
778778 agreement concerning the operations or maintenance of a state facility 653
779779 that meets the definition of a privatization contract, as defined in section 654
780780 4e-1, as amended by this act, shall be subject to the requirements of 655
781781 section 4e-16 regardless of whether such services are currently 656
782782 privatized. 657
783783 Sec. 8. Section 4e-1 of the general statutes is repealed and the 658
784784 following is substituted in lieu thereof (Effective October 1, 2020): 659
785785 For the purposes of sections 4e-1 to 4e-47, inclusive: 660
786786 (1) "Best value selection" means a contract selection process in which 661
787787 the award of a contract is based on a combination of quality, timeliness 662
788788 and cost factors; 663
789789 (2) "Bid" means an offer, submitted in response to an invitation to bid, 664
790790 to furnish supplies, materials, equipment, construction or contractual 665
791791 services to a state contracting agency under prescribed conditions at a 666
792792 stated price; 667
793793 (3) "Bidder" means a business submitting a bid in response to an 668
794794 invitation to bid by a state contracting agency; 669
795795 (4) "Business" means any individual or sole proprietorship, 670
796796 partnership, firm, corporation, trust, limited liability company, limited 671 Raised Bill No. 5400
797797
798798
799799
800800 LCO No. 2239 22 of 35
801801
802802 liability partnership, joint stock company, joint venture, association or 672
803803 other legal entity through which business for profit or not-for-profit is 673
804804 conducted; 674
805805 (5) "Competitive bidding" means the submission of prices by a 675
806806 business competing for a contract to provide supplies, materials, 676
807807 equipment or contractual services to a state contracting agency, under a 677
808808 procedure in which the contracting authority does not negotiate prices, 678
809809 as set forth in statutes and regulations concerning procurement; 679
810810 (6) "Consultant" means (A) any architect, professional engineer, 680
811811 landscape architect, land surveyor, accountant, interior designer, 681
812812 environmental professional or construction administrator, who is 682
813813 registered or licensed to practice such person's profession in accordance 683
814814 with the applicable provisions of the general statutes, (B) any planner or 684
815815 any environmental, management or financial specialist, or (C) any 685
816816 person who performs professional work in areas including, but not 686
817817 limited to, educational services, medical services, information 687
818818 technology and real estate appraisal; 688
819819 (7) "Consultant services" means those professional services rendered 689
820820 by a consultant and any incidental services that a consultant and those 690
821821 in the consultant's employ are authorized to perform; 691
822822 (8) "Contract" or "state contract" means an agreement or a 692
823823 combination or series of agreements between a state contracting agency 693
824824 or quasi-public agency and a business for: 694
825825 (A) A project for the construction, reconstruction, alteration, 695
826826 remodeling, repair or demolition of any public building, public work, 696
827827 mass transit, rail station, parking garage, rail track or airport; 697
828828 (B) Services, including, but not limited to, consultant and professional 698
829829 services; 699
830830 (C) The acquisition or disposition of personal property; 700
831831 (D) The provision of goods and services, including, but not limited 701 Raised Bill No. 5400
832832
833833
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835835 LCO No. 2239 23 of 35
836836
837837 to, the use of purchase of services contracts and personal service 702
838838 agreements; 703
839839 (E) The provision of information technology, state agency 704
840840 information system or telecommunication system facilities, equipment 705
841841 or services; 706
842842 (F) A lease; or 707
843843 (G) A licensing agreement; 708
844844 "Contract" or "state contract" does not include a contract between a state 709
845845 agency or a quasi-public agency and a political subdivision of the state; 710
846846 (9) "Term contract" means the agreement reached when the state 711
847847 accepts a bid or proposal to furnish supplies, materials, equipment or 712
848848 contractual services at a stated price for a specific period of time in 713
849849 response to an invitation to bid; 714
850850 (10) "Contract risk assessment" means (A) the identification and 715
851851 evaluation of loss exposures and risks, including, but not limited to, 716
852852 business and legal risks associated with the contracting process and the 717
853853 contracted goods and services, and (B) the identification, evaluation and 718
854854 implementation of measures available to minimize potential loss 719
855855 exposures and risks; 720
856856 (11) "Contractor" means any business that is awarded, or is a 721
857857 subcontractor under, a contract or an amendment to a contract with a 722
858858 state contracting agency under statutes and regulations concerning 723
859859 procurement, including, but not limited to, a small contractor, minority 724
860860 business enterprise or veteran-owned micro business as defined in 725
861861 section 4a-60g, as amended by this act, an individual with a disability, 726
862862 as defined in section 4a-60, or an organization providing products and 727
863863 services by persons with disabilities; 728
864864 (12) "Contractual services" means the furnishing of labor by a 729
865865 contractor, not involving the delivery of a specific end product other 730
866866 than reports, which are merely incidental to the required performance 731 Raised Bill No. 5400
867867
868868
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870870 LCO No. 2239 24 of 35
871871
872872 and includes any and all laundry and cleaning service, pest control 732
873873 service, janitorial service, security service, the rental and repair, or 733
874874 maintenance, of equipment, machinery and other state-owned personal 734
875875 property, advertising and photostating, mimeographing, human 735
876876 services and other service arrangements where the services are 736
877877 provided by persons other than state employees. "Contractual services" 737
878878 includes the design, development and implementation of technology, 738
879879 communications or telecommunications systems or the infrastructure 739
880880 pertaining thereto, including hardware and software and services for 740
881881 which a contractor is conferred a benefit by the state, whether or not 741
882882 compensated by the state. "Contractual services" does not include 742
883883 employment agreements or collective bargaining agreements; 743
884884 (13) "Data" means recorded information, regardless of form or 744
885885 characteristic; 745
886886 (14) "Vote of two-thirds of the members of the board present and 746
887887 voting" means a vote by the State Contracting Standards Board that is 747
888888 agreed upon by two-thirds of the members of the State Contracting 748
889889 Standards Board present and voting for a particular purpose and that 749
890890 includes the vote of one member of the board appointed by a legislative 750
891891 leader; 751
892892 (15) "Electronic" means electrical, digital, magnetic, optical, 752
893893 electromagnetic, or any other similar technology; 753
894894 (16) "Emergency procurement" means procurement by a state 754
895895 contracting agency, quasi-public agency, as defined in section 1-120, 755
896896 judicial department or constituent unit of higher education that is made 756
897897 necessary by a sudden, unexpected occurrence that poses a clear and 757
898898 imminent danger to public safety or requires immediate action to 758
899899 prevent or mitigate the loss or impairment of life, health, property or 759
900900 essential public services or in response to a court order, settlement 760
901901 agreement or other similar legal judgment; 761
902902 (17) "Equipment" means personal property of a durable nature that 762
903903 retains its identity throughout its useful life; 763 Raised Bill No. 5400
904904
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908908
909909 (18) "Materials" means items required to perform a function or used 764
910910 in a manufacturing process, particularly those incorporated into an end 765
911911 product or consumed in its manufacture; 766
912912 (19) "Nonprofit agency" means any organization that is not a for-767
913913 profit business under Section 501(c)(3) of the Internal Revenue Code of 768
914914 1986, or any subsequent corresponding internal revenue code of the 769
915915 United States, as from time to time amended, makes no distribution to 770
916916 its members, directors or officers and provides services contracted for 771
917917 by (A) the state, or (B) a nonstate entity; 772
918918 (20) "Professional services" means any type of service to the public 773
919919 that requires that members of a profession rendering such service obtain 774
920920 a license or other legal authorization as a condition precedent to the 775
921921 rendition thereof, including, but not limited to, the professional services 776
922922 of architects, professional engineers, or jointly by architects and 777
923923 professional engineers, landscape architects, certified public 778
924924 accountants and public accountants, land surveyors, attorneys-at-law, 779
925925 psychologists, licensed marital and family therapists, licensed 780
926926 professional counselors and licensed clinical social workers as well as 781
927927 such other professional services described in section 33-182a; 782
928928 (21) "Privatization contract" means an agreement or series of 783
929929 agreements between a state contracting agency and a person or entity in 784
930930 which such person or entity agrees to provide services that are 785
931931 substantially similar to and in lieu of services provided, in whole or in 786
932932 part, by state employees, other than contracts with a nonprofit agency, 787
933933 which are in effect as of January 1, 2009, and which through a renewal, 788
934934 modification, extension or rebidding of contracts continue to be 789
935935 provided by a nonprofit agency; 790
936936 (22) "Procurement" means contracting for, buying, purchasing, 791
937937 renting, leasing or otherwise acquiring or disposing of, any supplies, 792
938938 services, including but not limited to, contracts for purchase of services 793
939939 and personal service agreements, interest in real property, or 794
940940 construction, and includes all government functions that relate to such 795 Raised Bill No. 5400
941941
942942
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944944 LCO No. 2239 26 of 35
945945
946946 activities, including best value selection and qualification based 796
947947 selection; 797
948948 (23) "Proposer" means a business submitting a proposal to a state 798
949949 contracting agency in response to a request for proposals or other 799
950950 competitive sealed proposal; 800
951951 (24) "Public record" means a public record, as defined in section 1-801
952952 200; 802
953953 (25) "Qualification based selection" means a contract selection process 803
954954 in which the award of a contract is primarily based on an assessment of 804
955955 contractor qualifications and on the negotiation of a fair and reasonable 805
956956 price; 806
957957 (26) "Regulation" means regulation, as defined in section 4-166; 807
958958 (27) "Request for proposals" means all documents, whether attached 808
959959 or incorporated by reference, utilized for soliciting proposals; 809
960960 (28) "State contracting agency" means any executive branch agency, 810
961961 board, commission, department, office, institution or council. "State 811
962962 contracting agency" does not include the judicial branch, the legislative 812
963963 branch, the offices of the Secretary of the State, the State Comptroller, 813
964964 the Attorney General, the State Treasurer, with respect to their 814
965965 constitutional functions, any state agency with respect to contracts 815
966966 specific to the constitutional and statutory functions of the office of the 816
967967 State Treasurer. For the purposes of section 4e-16, "state contracting 817
968968 agency" includes any constituent unit of the state system of higher 818
969969 education and for the purposes of section 4e-19, "state contracting 819
970970 agency" includes the State Education Resource Center, established 820
971971 under section 10-4q; 821
972972 (29) "Subcontractor" means a subcontractor of a contractor for work 822
973973 under a contract or an amendment to a contract; 823
974974 (30) "Supplies" means any and all articles of personal property, 824
975975 including, but not limited to, equipment, materials, printing, insurance 825 Raised Bill No. 5400
976976
977977
978978
979979 LCO No. 2239 27 of 35
980980
981981 and leases of real property, excluding land or a permanent interest in 826
982982 land furnished to or used by any state agency; 827
983983 (31) "Infrastructure facility" means a building, structure or network 828
984984 of buildings, structures, pipes, controls and equipment that provide 829
985985 transportation, utilities, public education or public safety services. 830
986986 Infrastructure facility includes government office buildings, public 831
987987 schools, jails, water treatment plants, distribution systems and pumping 832
988988 stations, wastewater treatment plants, collections systems and pumping 833
989989 stations, solid waste disposal plants, incinerators, landfills, and related 834
990990 facilities, public roads and streets, highways, public parking facilities, 835
991991 public transportation systems, terminals and rolling stock, rail, air and 836
992992 water port structures, terminals and equipment; and 837
993993 (32) "State employee" means state employee, as defined in section 5-838
994994 154 and, for purposes of section 4e-16, state employee includes an 839
995995 employee of any state contracting agency. 840
996996 Sec. 9. Subsections (a) and (b) of section 4e-12 of the general statutes 841
997997 are repealed and the following is substituted in lieu thereof (Effective 842
998998 October 1, 2020): 843
999999 (a) [On or before February 1, 2011, the] The judicial branch and the 844
10001000 legislative branch shall each prepare a procurement code applicable to 845
10011001 contracting expenditures, including, but not limited to, expenditures: (1) 846
10021002 Involving contracting and procurement processes for purchasing or 847
10031003 leasing of supplies, materials or equipment, consultant or consultant 848
10041004 services, personal service agreements or purchase of service 849
10051005 agreements; and (2) relating to contracts for the renovation, alteration or 850
10061006 repair of any judicial branch or legislative branch facility in accordance 851
10071007 with section 4b-1. 852
10081008 (b) The procurement codes described in subsection (a) of this section 853
10091009 shall be designed to: (1) Establish uniform contracting standards and 854
10101010 practices; (2) simplify and clarify contracting standards and 855
10111011 procurement policies and practices, including, but not limited to, 856
10121012 procedures for competitive sealed bids, competitive sealed proposals, 857 Raised Bill No. 5400
10131013
10141014
10151015
10161016 LCO No. 2239 28 of 35
10171017
10181018 small purchases, sole source procurements, emergency procurements 858
10191019 and special procurements; (3) ensure the fair and equitable treatment of 859
10201020 all businesses and persons who deal with the procurement system; (4) 860
10211021 include a process to maximize the use of small contractors, [and] 861
10221022 minority business enterprises and veteran-owned micro businesses, as 862
10231023 defined in section 4a-60g, as amended by this act; (5) provide increased 863
10241024 economy in procurement activities and maximize purchasing value to 864
10251025 the fullest extent possible; (6) ensure that the procurement of supplies, 865
10261026 materials, equipment, services, real property and construction is 866
10271027 obtained in a cost-effective and responsive manner; (7) include a process 867
10281028 to ensure contractor and judicial branch or legislative branch 868
10291029 accountability; and (8) provide a process for competitive sealed bids, 869
10301030 competitive sealed proposals, small purchases, sole source 870
10311031 procurements, emergency procurements, special procurements, best 871
10321032 value selection, qualification based selection and the conditions for their 872
10331033 use. 873
10341034 Sec. 10. Section 7-148u of the general statutes is repealed and the 874
10351035 following is substituted in lieu thereof (Effective October 1, 2020): 875
10361036 (a) As used in this section: 876
10371037 (1) "Small contractor" means any contractor, subcontractor, 877
10381038 manufacturer or service company (A) which has been doing business 878
10391039 and has maintained its principal place of business in the state for a 879
10401040 period of at least one year prior to the date of application for certification 880
10411041 under this section, (B) which had gross revenues not exceeding ten 881
10421042 million dollars in the most recently completed fiscal year prior to such 882
10431043 application, and (C) at least fifty-one per cent of the ownership of which 883
10441044 is held by a person or persons who are active in the daily affairs of the 884
10451045 business and have the power to direct the management and policies of 885
10461046 the business. 886
10471047 (2) "Minority business enterprise" means any small contractor (A) 887
10481048 fifty-one per cent or more of the capital stock, if any, or assets of which 888
10491049 are owned by a person or persons (i) who are active in the daily affairs 889 Raised Bill No. 5400
10501050
10511051
10521052
10531053 LCO No. 2239 29 of 35
10541054
10551055 of the enterprise, (ii) who have the power to direct the management and 890
10561056 policies of the enterprise, and (iii) who are members of a minority, as 891
10571057 such term is defined in subsection (a) of section 32-9n, or (B) who is an 892
10581058 individual with a disability. 893
10591059 (3) "Individual with a disability" means an individual (A) having a 894
10601060 physical impairment that substantially limits one or more of the major 895
10611061 life activities of the individual, or (B) having a record of such an 896
10621062 impairment. 897
10631063 (4) "Veteran-owned micro business" has the same meaning as 898
10641064 provided in section 4a-59, as amended by this act. 899
10651065 (b) Notwithstanding any provision of the general statutes or of any 900
10661066 special act or any municipal charter or home rule ordinance, a 901
10671067 municipality may, by ordinance, set aside in each fiscal year, for award 902
10681068 to small contractors, minority business enterprises and veteran-owned 903
10691069 micro businesses, on the basis of a competitive bidding procedure, 904
10701070 municipal contracts or portions of municipal contracts for the 905
10711071 construction, reconstruction or rehabilitation of public buildings, the 906
10721072 construction and maintenance of highways and the purchase of goods 907
10731073 and services. The total value of such contracts or portions thereof to be 908
10741074 set aside shall be not more than twenty-five per cent of the average of 909
10751075 the total value of all such contracts let by the municipality for each of 910
10761076 the previous three fiscal years, provided a contract that may not be set 911
10771077 aside due to a conflict with a federal law or regulation shall not be 912
10781078 included in the calculation of such average. Contracts or portions 913
10791079 thereof having a value of not less than twenty-five per cent of the total 914
10801080 value of all contracts or portions thereof to be set aside shall be reserved 915
10811081 for awards to minority business enterprises. 916
10821082 Sec. 11. Subsection (e) of section 8-169jj of the 2020 supplement to the 917
10831083 general statutes is repealed and the following is substituted in lieu 918
10841084 thereof (Effective October 1, 2020): 919
10851085 (e) The authority shall have the power to negotiate, and, with the 920
10861086 approval of the Secretary of the Office of Policy and Management, to 921 Raised Bill No. 5400
10871087
10881088
10891089
10901090 LCO No. 2239 30 of 35
10911091
10921092 enter into an agreement with any private developer, owner or lessee of 922
10931093 any building or improvement located on land in a development district 923
10941094 providing for payments to the authority in lieu of real property taxes. 924
10951095 Such an agreement shall be made a condition of any private right of 925
10961096 development within the development district, and shall include a 926
10971097 requirement that such private developer, owner or lessee make good 927
10981098 faith efforts to hire, or cause to be hired, available and qualified minority 928
10991099 business enterprises and veteran-owned micro businesses, as defined in 929
11001100 section 4a-60g, as amended by this act, to provide construction services 930
11011101 and materials for improvements to be constructed within the 931
11021102 development district in an effort to achieve (1) a minority business 932
11031103 enterprise utilization goal of ten per cent, and (2) a veteran-owned micro 933
11041104 business utilization goal of five per cent, of the total costs of construction 934
11051105 services and materials for such improvements. Such payments to the 935
11061106 authority in lieu of real property taxes shall have the same lien and 936
11071107 priority, and may be enforced by the authority in the same manner, as 937
11081108 provided for municipal real property taxes. Such payments as received 938
11091109 by the authority shall be used to carry out the purposes of the authority 939
11101110 set forth in subsection (a) of this section. 940
11111111 Sec. 12. Subsection (d) of section 8-169mm of the 2020 supplement to 941
11121112 the general statutes is repealed and the following is substituted in lieu 942
11131113 thereof (Effective October 1, 2020): 943
11141114 (d) The authority shall designate a contract compliance officer from 944
11151115 its staff to monitor compliance of the operations of facilities and parking 945
11161116 facilities associated with authority development projects that are under 946
11171117 the management or control of the authority, with (1) the provisions of 947
11181118 state law applicable to such operations, and (2) applicable requirements 948
11191119 of contracts entered into by the authority relating to set-asides for small 949
11201120 contractors, [and] minority business enterprises and veteran-owned 950
11211121 micro businesses, as defined in section 4a-60g, as amended by this act, 951
11221122 and required efforts to hire available and qualified members of 952
11231123 minorities, as defined in section 32-9n. Each year during the period of 953
11241124 operations of facilities associated with authority development projects, 954
11251125 such officer shall file a written report with the authority as to findings 955 Raised Bill No. 5400
11261126
11271127
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11291129 LCO No. 2239 31 of 35
11301130
11311131 and recommendations regarding such compliance. 956
11321132 Sec. 13. Section 13a-95a of the general statutes is repealed and the 957
11331133 following is substituted in lieu thereof (Effective October 1, 2020): 958
11341134 The Commissioner of Transportation may, in the performance of his 959
11351135 duties under this title and title 13b and notwithstanding the provisions 960
11361136 of any general statute to the contrary, award contracts in a total amount 961
11371137 not in excess of fifteen million dollars and not in excess of five million 962
11381138 dollars per firm for any fiscal year, bidding for which shall be limited to 963
11391139 (1) "small business concerns owned and controlled by socially and 964
11401140 economically disadvantaged individuals" as defined in the federal Small 965
11411141 Business Act, 94 Stat. 2321 (1980) 15 USC 637, [and] (2) minority business 966
11421142 enterprises, as defined in section 4a-60g, as amended by this act, and (3) 967
11431143 veteran-owned micro businesses, as defined in section 4a-60g, as 968
11441144 amended by this act. The commissioner may expend an amount not in 969
11451145 excess of three hundred thousand dollars in any fiscal year for the 970
11461146 purpose of assisting such concerns in bidding on such contracts. Such 971
11471147 assistance shall include, but not be limited to, advice concerning 972
11481148 bonding, legal requirements of proper bidding, bid documents, 973
11491149 accounting requirements and other matters that will enable such 974
11501150 concerns to file a proper bid. 975
11511151 Sec. 14. Section 22a-263a of the general statutes is repealed and the 976
11521152 following is substituted in lieu thereof (Effective October 1, 2020): 977
11531153 The Materials Innovation and Recycling Authority shall make the 978
11541154 following information available to the public through the Internet, 979
11551155 except for any such information which is not required to be disclosed to 980
11561156 the public pursuant to the Freedom of Information Act, as defined in 981
11571157 section 1-200: 982
11581158 (1) The schedule of meetings of the board of directors of the authority 983
11591159 and each committee established by said board, not later than seven days 984
11601160 after such schedule is established; 985
11611161 (2) Draft minutes of each meeting of the board of directors of the 986 Raised Bill No. 5400
11621162
11631163
11641164
11651165 LCO No. 2239 32 of 35
11661166
11671167 authority and each committee established by said board, not later than 987
11681168 seven days after each such meeting is held; 988
11691169 (3) Each report required under section 4a-60g, as amended by this act, 989
11701170 setting forth small [and minority-business] contractor, minority 990
11711171 business enterprise and veteran-owned micro business set-aside 991
11721172 program goals and addressing the authority's progress in meeting said 992
11731173 goals, not later than seven days after each such report is required to be 993
11741174 submitted to the Commission on Human Rights and Opportunities 994
11751175 under [said] section 4a-60g, as amended by this act; 995
11761176 (4) The annual plan of operations which the authority is required to 996
11771177 prepare pursuant to section 22a-264, not later than seven days after the 997
11781178 plan is promulgated; 998
11791179 (5) Each report that the authority is required to submit to the General 999
11801180 Assembly pursuant to the general statutes, not later than seven days 1000
11811181 after the report is submitted; 1001
11821182 (6) Each audit of the authority conducted by the Auditors of Public 1002
11831183 Accounts, each compliance audit of the authority's activities conducted 1003
11841184 pursuant to section 1-122 and each audit conducted by an independent 1004
11851185 auditing firm, not later than seven days after each such audit is received 1005
11861186 by the board of directors of the authority; and 1006
11871187 (7) A report on any contract between the authority and a person, 1007
11881188 other than a director, officer or employee of the authority, for the 1008
11891189 purpose of influencing any legislative or administrative action on behalf 1009
11901190 of the authority or providing legal advice to the authority. The report 1010
11911191 shall indicate for each such contract (A) the names of the parties to the 1011
11921192 contract, (B) the cost of the contract, (C) the term of the contract, (D) a 1012
11931193 summary of the services to be provided under the contract, (E) the 1013
11941194 method used by the authority to award the contract, and (F) a summary 1014
11951195 of the authority's need for the services provided under the contract. 1015
11961196 Such report shall be made available through the Internet not later than 1016
11971197 fifteen days after the contract is entered into between the authority and 1017
11981198 the person. 1018 Raised Bill No. 5400
11991199
12001200
12011201
12021202 LCO No. 2239 33 of 35
12031203
12041204 Sec. 15. Subsection (a) of section 32-23o of the general statutes is 1019
12051205 repealed and the following is substituted in lieu thereof (Effective October 1020
12061206 1, 2020): 1021
12071207 (a) A Small Contractors' Revolving Loan Fund is created. In order to 1022
12081208 stimulate and encourage the growth and development of the state 1023
12091209 economy through the private enterprise of veteran-owned micro 1024
12101210 businesses, as defined in section 4a-60g, as amended by this act, and 1025
12111211 small contractors, the state, acting by the Department of Economic and 1026
12121212 Community Development, may provide working capital loans or 1027
12131213 provide lines of credit to veteran-owned micro businesses and small 1028
12141214 contractors from the Small Contractors' Revolving Loan Fund. For the 1029
12151215 purposes of this section, "small contractor" means contractors, 1030
12161216 subcontractors, minority business enterprises, manufacturers or service 1031
12171217 companies who have been doing business and have maintained their 1032
12181218 principal office and place of business in the state for a period of at least 1033
12191219 one year prior to the date of their application for assistance under this 1034
12201220 section, whose gross revenues in their most recently completed fiscal 1035
12211221 year did not exceed one million five hundred thousand dollars and 1036
12221222 which are considered small in accordance with such size standards as 1037
12231223 shall be established by regulations adopted by the department. In 1038
12241224 establishing such standards, the department shall consider the number 1039
12251225 of employees of the concern, provided any maximum number of 1040
12261226 employees which a small contractor may have under such definition 1041
12271227 shall vary from business to business to the extent necessary to reflect 1042
12281228 different characteristics of such business and to take proper account of 1043
12291229 other relevant factors. Not less than twenty-five per cent of the working 1044
12301230 capital loans and lines of credit provided under this section shall be 1045
12311231 made available to minority business enterprises and to veteran-owned 1046
12321232 micro businesses. The department shall charge and collect interest on 1047
12331233 each such working capital loan or line of credit at a rate to be determined 1048
12341234 in accordance with subsection (t) of section 3-20. In no event shall the 1049
12351235 total amount of such working capital loans or lines of credit provided to 1050
12361236 any single small contractor in any period of twelve consecutive months 1051
12371237 exceed two hundred thousand dollars. Payments made by small 1052 Raised Bill No. 5400
12381238
12391239
12401240
12411241 LCO No. 2239 34 of 35
12421242
12431243 contractors on all working capital loans and lines of credit paid to the 1053
12441244 Treasurer for deposit in the Small Contractors' Revolving Loan Fund 1054
12451245 shall be transferred to the Connecticut Growth Fund established under 1055
12461246 section 32-23v. The department shall promulgate rules and regulations 1056
12471247 in accordance with chapter 54 to carry out the provisions of this section. 1057
12481248 Such rules and regulations shall establish size standards for different 1058
12491249 types of small contractors, loan procedures, repayment terms, security 1059
12501250 requirements, default and remedy provisions and such other terms and 1060
12511251 conditions as the department shall deem appropriate. 1061
12521252 Sec. 16. Subsection (c) of section 32-605 of the general statutes is 1062
12531253 repealed and the following is substituted in lieu thereof (Effective October 1063
12541254 1, 2020): 1064
12551255 (c) The authority shall designate a contract compliance officer from 1065
12561256 the staff of the authority to monitor compliance of the operations of 1066
12571257 facilities under the management or control of the authority, the 1067
12581258 convention center, convention center hotel and related parking facilities 1068
12591259 of the center and the hotel, with the provisions of state law applicable to 1069
12601260 such operations, including, but not limited to, this section and sections 1070
12611261 32-650 to 32-668, inclusive, and with applicable requirements of 1071
12621262 contracts entered into by the authority, relating to set-asides for small 1072
12631263 contractors, [and] minority business enterprises and veteran-owned 1073
12641264 micro businesses, as defined in section 4a-60g, as amended by this act, 1074
12651265 and required efforts to hire available and qualified members of 1075
12661266 minorities, as defined in section 32-9n, and available and qualified 1076
12671267 residents of the city of Hartford for jobs in such operations. Such officer 1077
12681268 shall file, each year during the period of facility operations, a written 1078
12691269 report with the authority as to findings and recommendations regarding 1079
12701270 such compliance. 1080
12711271 This act shall take effect as follows and shall amend the following
12721272 sections:
12731273
12741274 Section 1 October 1, 2020 4a-59(c)
12751275 Sec. 2 October 1, 2020 4a-60g
12761276 Sec. 3 October 1, 2020 4a-60h Raised Bill No. 5400
12771277
12781278
12791279
12801280 LCO No. 2239 35 of 35
12811281
12821282 Sec. 4 October 1, 2020 4a-60j
12831283 Sec. 5 October 1, 2020 4a-57(a)
12841284 Sec. 6 October 1, 2020 4b-91(a)
12851285 Sec. 7 October 1, 2020 4-261
12861286 Sec. 8 October 1, 2020 4e-1
12871287 Sec. 9 October 1, 2020 4e-12(a) and (b)
12881288 Sec. 10 October 1, 2020 7-148u
12891289 Sec. 11 October 1, 2020 8-169jj(e)
12901290 Sec. 12 October 1, 2020 8-169mm(d)
12911291 Sec. 13 October 1, 2020 13a-95a
12921292 Sec. 14 October 1, 2020 22a-263a
12931293 Sec. 15 October 1, 2020 32-23o(a)
12941294 Sec. 16 October 1, 2020 32-605(c)
12951295
12961296 Statement of Purpose:
12971297 To provide veteran-owned micro businesses with economic
12981298 opportunities.
12991299 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
13001300 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
13011301 underlined.]
13021302