Connecticut 2020 Regular Session

Connecticut Senate Bill SB00481 Compare Versions

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

Old	New	Differences
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3	3	LCO No. 2780 1 of 7
4	4
5	5	General Assembly Raised Bill No. 481
6	6	February Session, 2020
7	7	LCO No. 2780
8	8
9	9
10	10	Referred to Committee on GOVERNMENT ADMINISTRATION
11	11	AND ELECTIONS
12	12
13	13
14	14	Introduced by:
15	15	(GAE)
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20	20	AN ACT CONCERNING PR EQUALIFICATION AND
21	21	DISQUALIFICATION OF STATE CONTRACTORS AN D SUBSTANTIAL
22	22	SUBCONTRACTORS FOR S TATE CONTRACTS.
23	23	Be it enacted by the Senate and House of Representatives in General
24	24	Assembly convened:
25	25
26	26	Section 1. Subsections (i) to (k), inclusive, of section 4a-100 of the 2020 1
27	27	supplement to the general statutes are repealed and the following is 2
28	28	substituted in lieu thereof (Effective October 1, 2020, and applicable to 3
29	29	certificates issued on or after said date): 4
30	30	(i) The commissioner may not issue or renew a prequalification 5
31	31	certificate to any contractor or substantial subcontractor (1) who is 6
32	32	disqualified pursuant to section 31-57c or 31-57d [,] or who has been 7
33	33	disqualified pursuant to said sections within the past three years, (2) 8
34	34	who has a principal or key personnel who, within the past five years, 9
35	35	has a conviction or has entered a plea of guilty or nolo contendere for or 10
36	36	has admitted to commission of an act or omission that reasonably could 11
37	37	have resulted in disqualification pursuant to any provision of 12
38	38	subdivisions (1) to (3), inclusive, of subsection (d) of section 31-57c or 13
39	39	subdivisions (1) to (3), inclusive, of subsection (d) of section 31-57d, as 14 Raised Bill No. 481
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41	41
42	42
43	43	LCO No. 2780 2 of 7
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45	45	determined by the commissioner, or (3) who has received an order 15
46	46	imposing a civil penalty under subsection (j) of section 4a-60g more than 16
47	47	once during the past three years. 17
48	48	(j) The commissioner may revoke a contractor's or substantial 18
49	49	subcontractor's prequalification or reduce the contractor's or substantial 19
50	50	subcontractor's prequalification classification or aggregate work 20
51	51	capacity ratings, after an opportunity for a hearing, if the commissioner 21
52	52	receives additional information that supports such revocation or 22
53	53	reduction. During the course of such hearing process, the commissioner 23
54	54	may suspend a contractor's or substantial subcontractor's 24
55	55	prequalification certificate if the commissioner determines that there is 25
56	56	probable cause to believe that such contractor or substantial 26
57	57	subcontractor engaged in conduct that significantly undermines the 27
58	58	skill, ability or integrity of such contractor or substantial subcontractor. 28
59	59	Any such suspension shall not exceed a period of three months and shall 29
60	60	be accompanied by a written decision of the commissioner that sets 30
61	61	forth the reasons for and duration of such suspension. The 31
62	62	commissioner shall send notification of any such suspension to such 32
63	63	contractor or substantial subcontractor by certified mail, return receipt 33
64	64	requested. Such contractor or substantial subcontractor may file a 34
65	65	response, in writing, not later than thirty days after receipt of such 35
66	66	notice. The commissioner shall review any such response submitted by 36
67	67	a contractor or substantial subcontractor within such thirty-day period. 37
68	68	(k) (1) Any substantial evidence of fraud in obtaining or maintaining 38
69	69	prequalification or any materially false statement in the application, 39
70	70	update statement or update bid statement may, in the discretion of the 40
71	71	awarding authority, result in termination of any contract awarded the 41
72	72	contractor by the awarding authority. The awarding authority shall 42
73	73	provide written notice to the commissioner of such false statement not 43
74	74	later than thirty days after discovering such false statement. The 44
75	75	commissioner shall provide written notice of such false statement to the 45
76	76	Commissioner of Consumer Protection and the president of The 46
77	77	University of Connecticut not later than thirty days after discovering 47
78	78	such false statement or receiving such notice. 48 Raised Bill No. 481
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82	82	LCO No. 2780 3 of 7
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84	84	(2) The commissioner shall deny or revoke the prequalification of any 49
85	85	contractor or substantial subcontractor if the commissioner finds that 50
86	86	the contractor or substantial subcontractor, or a principal or key 51
87	87	personnel of such contractor or substantial subcontractor, within the 52
88	88	past five years (A) has included any materially false statement in a 53
89	89	prequalification application, update statement or update bid statement, 54
90	90	(B) has been convicted of, entered a plea of guilty or nolo contendere for, 55
91	91	or admitted to, a crime related to the procurement or performance of 56
92	92	any public or private construction contract, or (C) has otherwise 57
93	93	engaged in fraud in obtaining or maintaining prequalification. Any 58
94	94	revocation made pursuant to this subsection shall be made only after an 59
95	95	opportunity for a hearing. Any contractor or substantial subcontractor 60
96	96	whose prequalification has been revoked pursuant to this subsection 61
97	97	shall be disqualified for a period of [two] three years after which the 62
98	98	contractor or substantial subcontractor may reapply for 63
99	99	prequalification, except that a contractor or substantial subcontractor 64
100	100	whose prequalification has been revoked on the basis of conviction of a 65
101	101	crime or engaging in fraud shall be disqualified for a period of five years 66
102	102	after which the contractor or substantial subcontractor may reapply for 67
103	103	prequalification. The commissioner shall not prequalify a contractor or 68
104	104	substantial subcontractor whose prequalification has been revoked 69
105	105	pursuant to this subdivision until the expiration of said [two-year] 70
106	106	three-year, five-year, or other applicable disqualification period and the 71
107	107	commissioner is satisfied that the matters that gave rise to the revocation 72
108	108	have been eliminated or remedied. 73
109	109	Sec. 2. Subsection (c) of section 4b-91 of the general statutes is 74
110	110	repealed and the following is substituted in lieu thereof (Effective October 75
111	111	1, 2020): 76
112	112	(c) No person may bid on a contract or perform work pursuant to a 77
113	113	contract that is subject to the provisions of subsection (a) of this section 78
114	114	unless the person is prequalified in accordance with section 4a-100, as 79
115	115	amended by this act, and if using substantial contractors to perform the 80
116	116	contract, certifies that such person will use substantial subcontractors 81
117	117	who are prequalified pursuant to section 4a-100, as amended by this act. 82 Raised Bill No. 481
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121	121	LCO No. 2780 4 of 7
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123	123	Sec. 3. Section 4b-92 of the general statutes is repealed and the 83
124	124	following is substituted in lieu thereof (Effective October 1, 2020): 84
125	125	As used in this chapter and except as otherwise provided, "lowest 85
126	126	responsible and qualified bidder" means the bidder (1) who is 86
127	127	prequalified pursuant to section 4a-100, [and] as amended by this act, 87
128	128	(2) whose bid is the lowest of those bidders possessing the skill, ability 88
129	129	and integrity necessary to faithful performance of the work based on 89
130	130	objective criteria considering past performance and information 90
131	131	contained in the update bid statement submitted pursuant to section 4b-91
132	132	91, and (3) if using substantial contractors to perform the contract, will 92
133	133	use substantial subcontractors who are prequalified pursuant to section 93
134	134	4a-100, as amended by this act. Essential information in regard to such 94
135	135	qualifications shall be submitted with the bid in such form as the 95
136	136	awarding authority may require by specification in the bid documents 96
137	137	and on the bid form. Every general bid shall be accompanied by a bid 97
138	138	bond or a certified check in an amount which shall be ten per cent of the 98
139	139	bid, provided no such bid bond or certified check shall be required in 99
140	140	relation to any general bid in which the total estimated cost of labor and 100
141	141	materials under the contract with respect to which such general bid is 101
142	142	submitted is less than fifty thousand dollars. Failure to execute a 102
143	143	contract awarded as specified and bid shall result in the forfeiture of 103
144	144	such bid bond or certified check. In considering past performance the 104
145	145	awarding authority shall evaluate the skill, ability and integrity of 105
146	146	bidders in terms of the bidders' fulfillment of contract obligations and 106
147	147	of the bidders' experience or lack of experience with projects of the 107
148	148	nature and scope of the project for which the bids are submitted. 108
149	149	Sec. 4. Subsection (b) of section 31-53 of the 2020 supplement to the 109
150	150	general statutes is repealed and the following is substituted in lieu 110
151	151	thereof (Effective October 1, 2020): 111
152	152	(b) Any contractor or subcontractor who knowingly or wilfully 112
153	153	employs any mechanic, laborer or worker in the construction, 113
154	154	remodeling, refinishing, refurbishing, rehabilitation, alteration or repair 114
155	155	of any public works project for or on behalf of the state or any of its 115 Raised Bill No. 481
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157	157
158	158
159	159	LCO No. 2780 5 of 7
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161	161	agents, or any political subdivision of the state or any of its agents, at a 116
162	162	rate of wage on an hourly basis that is less than the rate customary or 117
163	163	prevailing for the same work in the same trade or occupation in the town 118
164	164	in which such public works project is being constructed, remodeled, 119
165	165	refinished, refurbished, rehabilitated, altered or repaired, or who fails to 120
166	166	pay the amount of payment or contributions paid or payable on behalf 121
167	167	of each such person to any employee welfare fund, or in lieu thereof to 122
168	168	the person, as provided by subsection (a) of this section, shall be fined 123
169	169	not less than two thousand five hundred dollars but not more than five 124
170	170	thousand dollars for each offense and (1) for the first violation, shall be 125
171	171	disqualified from bidding on contracts with the state or any political 126
172	172	subdivision until the contractor or subcontractor has made full 127
173	173	restitution of the back wages owed to such persons and for an additional 128
174	174	six months thereafter, and (2) for subsequent violations, shall be 129
175	175	disqualified from bidding on contracts with the state or any political 130
176	176	subdivision until the contractor or subcontractor has made full 131
177	177	restitution of the back wages owed to such persons and for not less than 132
178	178	an additional [two] three years thereafter. In addition, if it is found by 133
179	179	the contracting officer representing the state or political subdivision of 134
180	180	the state that any mechanic, laborer or worker employed by the 135
181	181	contractor or any subcontractor directly on the site for the work covered 136
182	182	by the contract has been or is being paid a rate of wages less than the 137
183	183	rate of wages required by the contract to be paid as required by this 138
184	184	section, the state or contracting political subdivision of the state may (A) 139
185	185	by written or electronic notice to the contractor, terminate such 140
186	186	contractor's right to proceed with the work or such part of the work as 141
187	187	to which there has been a failure to pay said required wages and to 142
188	188	prosecute the work to completion by contract or otherwise, and the 143
189	189	contractor and the contractor's sureties shall be liable to the state or the 144
190	190	contracting political subdivision for any excess costs occasioned the 145
191	191	state or the contracting political subdivision thereby, or (B) withhold 146
192	192	payment of money to the contractor or subcontractor. The contracting 147
193	193	department of the state or the political subdivision of the state shall, not 148
194	194	later than two days after taking such action, notify the Labor 149
195	195	Commissioner, in writing or electronically, of the name of the contractor 150 Raised Bill No. 481
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199	199	LCO No. 2780 6 of 7
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201	201	or subcontractor, the project involved, the location of the work, the 151
202	202	violations involved, the date the contract was terminated, and steps 152
203	203	taken to collect the required wages. 153
204	204	Sec. 5. Subsection (c) of section 31-53c of the general statutes is 154
205	205	repealed and the following is substituted in lieu thereof (Effective October 155
206	206	1, 2020): 156
207	207	(c) Any contractor or subcontractor who knowingly or wilfully 157
208	208	employs any mechanic, laborer or worker in any project receiving 158
209	209	financial assistance from the Department of Economic and Community 159
210	210	Development for such project, at a rate of wage on an hourly basis that 160
211	211	is less than the rate customary or prevailing for the same work in the 161
212	212	same trade or occupation in the town in which such project is located, 162
213	213	or who fails to pay the amount of payment or contributions paid or 163
214	214	payable on behalf of each such person to any employee welfare fund, as 164
215	215	defined in subsection (i) of section 31-53, or in lieu thereof to the person, 165
216	216	as provided by subsection (b) of this section, shall be fined not less than 166
217	217	two thousand five hundred dollars but not more than five thousand 167
218	218	dollars for each offense and (1) for the first violation, shall be 168
219	219	disqualified from bidding on contracts for projects for which the 169
220	220	Department of Economic and Community Development provides 170
221	221	financial assistance until the contractor or subcontractor has made full 171
222	222	restitution of the back wages owed to such persons and for an additional 172
223	223	six months thereafter, and (2) for subsequent violations, shall be 173
224	224	disqualified from bidding on contracts for projects for which the 174
225	225	Department of Economic and Community Development provides 175
226	226	financial assistance until the contractor or subcontractor has made full 176
227	227	restitution of the back wages owed to such persons and for not less than 177
228	228	an additional [two] three years thereafter. In addition, if it is found by 178
229	229	the contracting officer representing the business organization that any 179
230	230	mechanic, laborer or worker employed by the contractor or any 180
231	231	subcontractor directly on the site for the work covered by the contract 181
232	232	has been or is being paid a rate of wages less than the rate of wages 182
233	233	required by the contract to be paid as required by this section, the 183
234	234	business organization may (A) by written or electronic notice to the 184 Raised Bill No. 481
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238	238	LCO No. 2780 7 of 7
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240	240	contractor, terminate such contractor's right to proceed with the work 185
241	241	or such part of the work as to which there has been a failure to pay said 186
242	242	required wages and to prosecute the work to completion by contract or 187
243	243	otherwise, and the contractor and the contractor's sureties shall be liable 188
244	244	to the business organization for any excess costs occasioned the business 189
245	245	organization thereby, or (B) withhold payment of money to the 190
246	246	contractor or subcontractor. The contracting business organization shall, 191
247	247	not later than two days after taking such action, notify the Labor 192
248	248	Commissioner, in writing or electronically, of the name of the contractor 193
249	249	or subcontractor, the project involved, the location of the work, the 194
250	250	violations involved, the date the contract was terminated and steps 195
251	251	taken to collect the required wages. 196
252	252	This act shall take effect as follows and shall amend the following
253	253	sections:
254	254
255	255	Section 1 October 1, 2020, and
256	256	applicable to certificates
257	257	issued on or after said date
258	258	4a-100(i) to (k)
259	259	Sec. 2 October 1, 2020 4b-91(c)
260	260	Sec. 3 October 1, 2020 4b-92
261	261	Sec. 4 October 1, 2020 31-53(b)
262	262	Sec. 5 October 1, 2020 31-53c(c)
263	263
264	264	Statement of Purpose:
265	265	To prohibit any contractor or subcontractor found to have violated
266	266	certain statutory provisions from receiving prequalification for a period
267	267	of three years, to disqualify certain contractors that have violated wage
268	268	provisions for three years and to require the use of prequalified
269	269	substantial subcontractors for certain contracts.
270	270	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
271	271	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
272	272	underlined.]
273	273