Connecticut 2021 2021 Regular Session

Connecticut House Bill HB06444 Comm Sub / Analysis

Filed 05/28/2021

                     
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OLR Bill Analysis 
sHB 6444 (as amended by House "A")* 
 
AN ACT CONCERNING THE MODERNIZATION OF STATE 
SERVICES.  
 
TABLE OF CONTENTS: 
§§ 1-7 — CONTRACTING AFFIDAVITS 
Generally eliminates requirements that contractors submit documentation (e.g., affidavits 
and certifications) about their compliance with certain contracting laws and instead 
requires that they incorporate the applicable requirements into the contracts 
§§ 8-11 — SET-ASIDE PROGRAM 
Revamps program’s eligibility requirements by requiring that for-profit entities be 
registered as a small business in the federal government's contracting database to 
participate in the program 
§ 12 — COMPETITIVE BIDDING WAIVERS 
Clarifies DAS commissioner’s authority to waive competitive bidding requirements 
§ 13 — REVERSE AUCTIONS FOR SERVICES 
Allows use of reverse auctions to purchase services other than construction or 
construction-related services 
§ 14 — PRE-MARKET PRODUCT TESTING BY STATE AGENCIES 
Expands the types of eligible businesses and products eligible for pre-market testing by 
state agencies 
§ 15 — PURCHASES FROM EXISTING CONTRACTS 
Expands the state’s “piggyback” purchasing authority to include purchases from 
contracts with another state agency or branch; allows agencies to make these purchases 
directly if approved by DAS 
§ 16 — STATE INSURANCE AND RISK MANAGEMENT BOARD 
Reduces the board’s size from 13 members to 10 and makes conforming changes 
§ 17 — BUSINESS ACTIVITIES CONDUCTED ONLINE 
Allows state and quasi-public agencies to conduct certain business activities 
electronically 
§ 18 — INFORMATION AND TELE COMMUNICATION SYSTEM S 
STRATEGIC PLAN 
Requires that DAS’s annual information and telecommunication systems strategic plan 
include standards for digital identity verification 
§§ 19-24 — ELIMINATED REPORTING REQUIREMENTS 
Eliminates various reporting requirements  2021HB-06444-R01-BA.DOCX 
 
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§ 25 — COMMISSION FOR EDUCA TIONAL TECHNOLOGY 
Increases the commission’s size from 19 members to 23 
BACKGROUND 
 
*House Amendment “A” (1) adds the provisions on the 
Commission for Education Technology; (2) requires that small 
businesses be registered with the federal government to participate in 
the set-aside program, rather than certified by the federal government 
as required by the underlying bill; and (3) removes provisions from the 
underlying bill that eliminated certain reports submitted to, and 
produced by, the State Properties Review Board. 
§§ 1-7 — CONTRACTING AFFIDAVI TS 
Generally eliminates requirements that contractors submit documentation (e.g., affidavits 
and certifications) about their compliance with certain contracting laws and instead 
requires that they incorporate the applicable requirements into the contracts 
The bill modifies contract compliance requirements for certain state, 
municipal, and quasi-public agency contracts. It generally eliminates 
requirements that contractors submit documentation (e.g., affidavits 
and certifications) about their compliance with certain contracting laws 
and instead requires that they incorporate the applicable requirements 
into the contracts.  
The bill’s provisions concern contractors’ compliance with (1) state 
ethics laws; (2) restrictions on gifts, investments, political contributions 
and solicitations, and use of consultants; and (3) nondiscrimination 
and affirmative action requirements. It also codifies and expands upon 
provisions in an existing executive order that require certain state 
contractors to disclose any campaign contributions. 
The bill’s provisions on ethics laws, gift restrictions, consultant use, 
and nondiscrimination and affirmative action requirements do not 
apply to qualifying UConn and Board of Regents for Higher Education 
contracts, as these contracts are subject to different requirements under 
existing law.  
Lastly, the bill makes technical and conforming changes.  2021HB-06444-R01-BA.DOCX 
 
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EFFECTIVE DATE:  July 1, 2021 
State Ethics Laws (§ 1) 
Under current law, contractors and bidders for large state 
construction or procurement contracts (i.e., valued at more than 
$500,000) must affirm, in writing or electronically, that (1) they 
received a state ethics law summary from the contracting state or 
quasi-public agency and (2) their key personnel read and understood 
the summary and agreed to comply with the ethics laws. Similarly, 
large state construction or procurement contractors must obtain these 
affirmations from their subcontractors and consultants and provide 
them to the state contracting agency. Failure to submit the affirmation 
disqualifies the contractors, bidders, subcontractors, and consultants 
from the contract. 
Rather than requiring the above affirmations, the bill establishes a 
different requirement for these contracts. Specifically, it prohibits a 
state agency or quasi-public agency from entering into a large state 
construction or procurement contract unless the contract contains a 
representation that the chief executive officer or authorized signatory 
of the contract and all key employees have read and understood the 
summary and agreed to comply with the ethics laws’ provisions. It 
similarly requires large state construction or procurement contractors 
to include this representation in each of their contracts entered into on 
or after July 1, 2021, with subcontractors and consultants. Under the 
bill, failure to do so is cause for terminating the contract.  
Gifts (§ 2) 
Under current law, any principal or key personnel of a person, firm, 
or corporation that submits bids or proposals for a large state contract 
(i.e., valued more than $500,000 in a calendar or fiscal year) must 
certify that (1) no gifts were given in connection with the contract; (2) 
there were no attempts to circumvent the gift prohibition; and (3) the 
bids or proposals are being submitted without fraud or collusion. The 
certifications must be sworn as true to the certifier’s best knowledge 
and belief, under penalty of false statement.   2021HB-06444-R01-BA.DOCX 
 
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In addition, current law requires the agency official or employee 
responsible for executing the contract to certify that the selection 
process was devoid of collusion, gift giving (received or promised), 
compensation, fraud, or inappropriate influence. 
The bill replaces these required certifications with requirements that 
the contracts contain representations to the same effect. An existing 
executive order subjects state contracts with a value of $50,000 or more 
in a calendar or fiscal year to the gift certification requirements that 
apply to contracts with a value of $500,000 or more (Executive Order 
49, see BACKGROUND). Thus, the bill’s requirements also appear to 
apply to contracts with an annual value of $50,000 or more. 
Under the bill, state and quasi-public agencies must include notice 
of the representation requirements in the bid specifications or request 
for proposals (RFP), and failure to agree to them disqualifies the 
bidder or proposer from the contract. The same requirements apply 
with respect to the certifications under current law. 
Investments in Iran (§ 3) 
Under current law, state and quasi-public agencies are prohibited 
from entering into, renewing, or amending a large state contract (i.e., 
valued at more than $500,000 in a calendar or fiscal year) with an 
entity that (1) fails to certify that such entity has not directly invested 
$20 million or more in Iran’s energy sector or (2) certifies that it has 
made, renewed, or increased such an investment. Iran’s energy sector, 
as defined by federal law, includes activities to develop petroleum or 
natural gas resources or nuclear power in Iran. The certification must 
be sworn as true to the entity’s best knowledge and belief, subject to 
the penalties for false statement with a penalty exception for affiants 
who make a good faith effort to verify whether they have made a 
prohibited investment. Bidders and proposers must submit the 
certification before submitting a bid or proposal for a large state 
contract.  
The bill instead prohibits state and quasi-public agencies from 
entering into, renewing, or amending a large state contract unless the  2021HB-06444-R01-BA.DOCX 
 
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contract contains the entity’s certification that it has not made a 
prohibited investment in Iran. Agencies must include notice of these 
representation requirements in bid specifications or RFPs for these 
contracts, just as they must for current law’s certification requirements.  
As under current law for the certifications, the representation 
requirements do not apply to any contract of the state treasurer in his 
role as trustee of the Connecticut retirement plans and trust funds.  
Consulting Agreements (§ 4) 
The bill replaces certain required affidavits about consulting 
agreements with representations that must be included in the 
contracts. Under the current requirements, any principal or key 
personnel of a person, firm, or corporation that submits bids or 
proposals for a goods and services contract with a total value of 
$50,000 or more in a calendar or fiscal year must attest to whether a 
consulting agreement has been entered into in connection with the 
contract. Under the bill, the contract must include a representation to 
this same effect.  
As is currently required for the affidavits, the representation must 
include specified information about any such agreement, including its 
basic terms, as well as the consultant’s name and status as a former 
state employee or public official. It must be sworn as true to the best 
knowledge and belief of the person signing the contract and is subject 
to the penalties of false statement. Each state and quasi-public agency 
must include a notice of the representation requirements in the bid 
specifications or RFPs for these contracts as is required under current 
law for the affidavits. Failure to submit the affidavit under current law, 
or agree to the representation under the bill, disqualifies the bidder or 
proposer from the contract. 
Political Contributions (§ 5) 
Current law requires state and quasi-public agencies to (1) 
distribute a written notice advising contractors and prospective 
contractors of the restrictions on contributing to, or soliciting for, 
statewide or legislative candidates, certain political committees, and  2021HB-06444-R01-BA.DOCX 
 
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party committees and (2) obtain a written acknowledgment of the 
notice receipt.  
The bill instead requires state and quasi-public agencies to include a 
copy of, or Internet link to, the notice in the bid specifications or RFPs 
for a state contract.   
The bill also prohibits such agencies from executing any state 
contract, as described below, unless it contains a representation that 
the chief executive officer or authorized signatory of the contract has 
received the notice. The campaign finance law generally defines “state 
contract” as an agreement or contract with a state agency in the 
executive or legislative branch of government or any quasi-public 
agency valued at $50,000 or more, or a combination or series of 
agreements or contracts having a value of $100,000 or more in a 
calendar year. 
Under the bill, any principal of the state contractor or prospective 
state contractor submitting a bid or proposal for a state contract must 
certify, under penalty of false statement, that in the previous four years 
neither the contractor or prospective state contractor, nor any of its 
principals, have made or solicited any prohibited political 
contributions unless there were mitigating circumstances found to 
exist concerning the violation. Similar requirements apply to 
contractors submitting bids or proposals for state contracts valued at 
more than $50,000 under an existing executive order (Executive Order 
49, see BACKGROUND). 
Each certification must be sworn as true to the best knowledge and 
belief of the person signing the certification. The bill requires the 
person to submit an updated certification if there is a change in the 
most recently filed certification, either within 30 days after the effective 
date of the change or upon submitting a new bid or proposal for a state 
contract, whichever is earlier. 
Under the bill, any principal of the state contractor or prospective 
state contractor submitting a bid or proposal for a state contract must 
disclose on the certification all contributions made by its principals to  2021HB-06444-R01-BA.DOCX 
 
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any party committee, exploratory committee, statewide or legislative 
candidate, or candidate committee for a period of four years prior to 
the signing of the contract or date of the response to the bid, whichever 
is longer, and certify that all contributions have been disclosed.  
The bill prohibits state and quasi-public agencies from executing a 
state contract unless first obtaining the written certification. Each state 
agency and quasi-public agency must include in its bid specifications 
or RFPs for a state contract a notice of the certification requirements. 
Nondiscrimination and Affirmative Action (§§ 6 & 7) 
Under current law, contractors that enter into contracts with the 
state or one of its political subdivisions, other than a municipality, or 
who are a party to a municipal public works contract or quasi-public 
agency project contract, must indicate that they comply with state 
nondiscrimination and affirmative action laws by filing (1) a written or 
electronic representation for contracts valued less than $50,000 for each 
year or (2) certain documentation for contracts valued at $50,000 or 
more for each year.  
The bill instead requires the contracts, regardless of their value, to 
contain a nondiscrimination affirmation provision to certify that the 
contractor (1) understands the law’s nondiscrimination and affirmative 
action obligations and (2) will maintain a nondiscrimination policy for 
the duration of the contract. Under the bill, the authorized signatory of 
the contract must demonstrate his or her understanding of this 
obligation by either (1) providing an affirmative response in the 
required online bid or RFP or (2) initialing the affirmation provision in 
the contract. 
§§ 8-11 — SET-ASIDE PROGRAM 
Revamps program’s eligibility requirements by requiring that for-profit entities be 
registered as a small business in the federal government's contracting database to 
participate in the program 
The bill revamps the state set-aside program’s eligibility 
requirements for small contractors and minority business enterprises 
(MBEs). With respect to for-profit entities, it defines a “small 
contractor” as one that is registered as a small business in the federal  2021HB-06444-R01-BA.DOCX 
 
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database maintained by the U.S. General Services Administration, as 
required to do business with the federal government (see 
BACKGROUND). This requirement replaces provisions in current law 
requiring, among other things, that these entities have annual gross 
revenues of $20 million or less and be independent. (By law, 
unchanged by the bill, MBEs are small contractors owned by women, 
minorities, or people with disabilities.) 
The bill makes conforming changes, including allowing awarding 
authorities to require documentation of a contractor’s or 
subcontractor’s (1) registration in the federal database if they are 
awarded a contract or contract portion under the set-aside program 
and (2) principal place of business in the state. It also specifies that 
program certifications awarded before October 1, 2021, remain valid 
for their original term unless revoked for cause. 
The bill retains existing law’s eligibility requirements for nonprofit 
entities (e.g., that they have annual gross revenues of $20 million or 
less and be independent). It additionally specifies that these entities 
must have a federal tax exemption in order to participate. 
Under existing law, the Department of Administrative Services 
(DAS) commissioner must establish a process to certify small 
contractors and MBEs as eligible for set-aside contracts. Presumably, 
the commissioner must revise this process to conform to the bill’s 
requirements that for-profit entities be registered in the federal 
database. The bill retains existing law’s validity period for set-aside 
program certifications (i.e., they are valid for up to two years, except 
that the commissioner may extend them for up to six months). 
EFFECTIVE DATE: October 1, 2021, with the changes to the 
eligibility criteria applicable to certifications issued or renewed on or 
after that date. 
§ 12 — COMPETITIVE BIDDING WAIVERS 
Clarifies DAS commissioner’s authority to waive competitive bidding requirements 
Current law allows the DAS commissioner to waive competitive  2021HB-06444-R01-BA.DOCX 
 
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bidding or competitive negotiation at his discretion for minor 
nonrecurring and emergency purchases of $10,000 or less. The bill 
clarifies that the authority applies to minor nonrecurring or emergency 
purchases of $10,000 or less. 
EFFECTIVE DATE:  July 1, 2021 
§ 13 — REVERSE AUCTIONS FOR SERVICES 
Allows use of reverse auctions to purchase services other than construction or 
construction-related services 
Existing law allows state contracting agencies to use reverse 
auctions to purchase goods and supplies. The bill expands reverse 
auction authority to include services other than construction or 
construction-related services. As under existing law for goods and 
supplies, contracting agencies may (1) use reverse auctions for services 
when they determine it is advantageous and will ensure a competitive 
contract award and (2) contract with a third party to prepare and 
manage the auction.  
By law, a reverse auction is an online bidding process in which 
qualified bidders or proposers, unknown to each other, submit bids or 
proposals pursuant to an online bid invitation or request for proposals. 
EFFECTIVE DATE:  July 1, 2021 
§ 14 — PRE-MARKET PRODUCT TESTI NG BY STATE AGENCIES 
Expands the types of eligible businesses and products eligible for pre-market testing by 
state agencies 
The bill expands the types of technologies, products, and processes 
eligible for pre-market testing by state agencies. It allows the DAS 
commissioner to procure them for use by all state agencies if the Office 
of Policy and Management (OPM) secretary, in consultation with the 
commissioner, Connecticut Innovations, Inc. (CI) chief executive 
officer, and testing agency head, determines that the test demonstrates 
specified objectives. 
Additionally, the bill makes minor changes concerning the process 
for participating in testing, the testing’s costs, and a related recognition  2021HB-06444-R01-BA.DOCX 
 
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program for participating agencies. Lastly, the bill makes technical and 
conforming changes. 
EFFECTIVE DATE:  July 1, 2021 
Eligibility 
Current law allows CI-funded businesses located in Connecticut to 
test their technology, product, or process in state agencies in order to 
study its commercial viability if it meets certain criteria. Specifically, it 
must (1) promote public health and safety, environmental protection, 
or economic development; (2) be manufactured in Connecticut and be 
safe; and (3) have the potential for commercialization within two years 
after completing the test. 
The bill extends testing eligibility to small and minority business 
enterprises certified under the state’s set-aside program. It also 
expands the types of eligible products to include those that CI finds 
would reduce administrative burdens or promote efficiency in state 
services, or otherwise improve them. It eliminates a requirement that 
the technology, product, or process be manufactured or produced in 
Connecticut and instead requires that it have a positive economic 
impact on the state, including prospective job growth and economic 
activity upon commercialization. 
Participation and Costs 
Upon an eligible business’s application, current law allows CI to 
recommend that the OPM secretary direct a state agency to test the 
technology, product, or process in the agency’s operations on a trial 
basis. The bill instead allows CI to recommend that OPM allow (rather 
than direct) agencies to participate in testing. (However, it retains 
OPM’s authority to direct agencies to participate.) It also specifically 
includes public higher education institutions as state agencies for 
purposes of this program. 
Under current law, CI, the business, or an investor in the business 
must pay for the cost of providing the technology, product, or process 
to the testing agency. The bill requires the OPM secretary, in  2021HB-06444-R01-BA.DOCX 
 
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consultation with the DAS commissioner, CI executive director, and 
testing agency head, to determine on a case-by-case basis which of the 
above entities must bear these costs. 
Procurement 
The bill allows the DAS commissioner to procure the product, 
process, or technology for use by all state agencies if the OPM 
secretary, in consultation with the commissioner, CI chief executive 
officer, and testing agency head, determines that the test demonstrates 
specified objectives. (Presumably, this would occur after the test 
concludes.) These objectives are (1) promoting public health and 
safety, environmental protection, economic development, or efficiency; 
(2) reducing administrative burdens; or (3) otherwise improving state 
services. 
In procuring the product, process, or technology, the bill allows the 
DAS commissioner to waive competitive bidding requirements. If the 
procurement is estimated to cost $50,000 or more, the waiver must be 
approved by the Standardization Committee, which consists of the 
commissioner, the state comptroller and treasurer or their designees, 
and other department heads (or their agents) designated by the 
governor. 
Recognition Program 
Current law allows OPM and CI to develop a program to recognize 
state agencies that promote public health and safety, environmental 
protection, or economic development by participating in testing. The 
bill (1) also makes DAS responsible for developing the recognition 
program (which remains permissive under the bill) and (2) adds 
promoting efficiencies, reducing service burdens, and improving state 
services as activities eligible for recognition. As under existing law, the 
recognition program may include a fund for any savings achieved by 
testing agencies using the technologies, products, or processes. The 
fund must be used only for the recognition program. 
§ 15 — PURCHASES FROM EXIST ING CONTRACTS  2021HB-06444-R01-BA.DOCX 
 
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Expands the state’s “piggyback” purchasing authority to include purchases from 
contracts with another state agency or branch; allows agencies to make these purchases 
directly if approved by DAS 
Existing law allows the state to purchase, through the DAS 
commissioner, goods and services from a person that has a contract to 
sell the goods and services to a political subdivision of the state (e.g., a 
municipality), nonprofit organization, public purchasing consortium, 
or other state government (i.e., “piggyback”). 
The bill expands this authority to include purchases from a person 
who contracts with another branch, division, or department in state 
government. It also eliminates the requirement that these purchases be 
made through the DAS commissioner and instead allows any state 
agency to make them if approved by the DAS commissioner or his 
designee. 
EFFECTIVE DATE:  July 1, 2021 
§ 16 — STATE INSURANCE AND RISK MANAGEMENT BOAR D 
Reduces the board’s size from 13 members to 10 and makes conforming changes 
The bill eliminates three gubernatorial appointments from the State 
Insurance and Risk Management Board, reducing its size from 13 
members to 10. (By law, the board consists of gubernatorial appointees 
and the state comptroller (or his designee) as an ex-officio member.) 
The bill makes conforming changes by reducing the number of (1) 
public members from four to three, (2) members qualified by training 
from eight to six, and (3) members who may be from the same political 
party from eight to five. It specifies that five members, rather than a 
majority of members as current law provides, constitute a quorum. 
EFFECTIVE DATE:  July 1, 2021 
§ 17 — BUSINESS ACTIVITIES CONDUCTED ONLINE 
Allows state and quasi-public agencies to conduct certain business activities electronically 
The bill allows state and quasi-public agencies to conduct various 
business activities electronically. Specifically, they may do the 
following:  2021HB-06444-R01-BA.DOCX 
 
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1. accept fee payments by any means of electronic funds transfer 
they adopt; 
2. receive, by electronic means with proof of delivery receipt, any 
communication or correspondence that must be delivered under 
current law by registered or certified mail, return receipt 
requested; 
3. receive, by electronic means, any communication or 
correspondence that must be delivered under current law by 
U.S. mail or fax (as long as the agency determines that electronic 
delivery is appropriate); and 
4. post, on their website or another electronic portal available to 
the general public, any legal notice that must be advertised in a 
newspaper under current law. 
Under the bill, each of these activities must comply with the 
Connecticut Uniform Electronic Transactions Act (CUETA) if 
conducted electronically (e.g., the parties must agree to conduct the 
transaction electronically) (see BACKGROUND). 
EFFECTIVE DATE:  July 1, 2021 
§ 18 — INFORMATION AND TELECOMMUNICA TION SYSTEMS 
STRATEGIC PLAN 
Requires that DAS’s annual information and telecommunication systems strategic plan 
include standards for digital identity verification 
Existing law requires the DAS commissioner to develop, publish, 
and annually update an information and telecommunication systems 
strategic plan. Among other things, the plan must include architecture 
guidelines and standards for these systems that support state agencies. 
The bill requires that the plan specifically include standards for 
digital identity verification under CUETA that are consistent with 
industry standards and best practices. Among other things, CUETA 
provides that if a signature or record must be notarized, 
acknowledged, verified, or made under oath, the requirement is 
satisfied by an electronic signature from the person authorized to  2021HB-06444-R01-BA.DOCX 
 
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perform these acts (along with any other information required by the 
applicable law). 
EFFECTIVE DATE:  July 1, 2021 
§§ 19-24 — ELIMINATED REPORTING REQUIREMENTS 
Eliminates various reporting requirements 
The bill eliminates several reporting requirements by DAS to the 
legislature, or from state agencies to DAS, as shown in Table 1. 
Table 1: Eliminated Reporting Requirements 
§ 	Reporting Requirement 
19 Annual report by DAS to the Environment, Government Administration and 
Elections, and Transportation committees on the state vehicle fleet 
20 Annual reports by state agencies to DAS on purchase orders made by the 
agency under purchasing authority delegated by DAS 
21 Annual report by DAS to the Appropriations Committee listing personal 
property items leased by state agencies 
22 Annual report by DAS and the Codes and Standards Committee to the Public 
Safety and Security Committee with recommendations for amending state 
agency regulations that conflict with the State Building Code or fire safety 
regulations (e.g., the State Fire Code) 
23 Triennial report by the state fire marshal to the Public Safety and Security 
Committee on the effectiveness of state law’s provisions on fire-safe cigarette 
testing 
24 Annual filing by state agencies of ethics statements with DAS (the bill retains 
the requirement that they be filed with the Office of State Ethics) 
 
EFFECTIVE DATE:  July 1, 2021 
§ 25 — COMMISSION FOR EDUCA TIONAL TECHNOLOGY 
Increases the commission’s size from 19 members to 23 
The bill increases the size of the Commission for Education 
Technology from 19 members to 23 by adding the following four 
members: 
1. a representative of the Connecticut Association of Public School 
Superintendents,  2021HB-06444-R01-BA.DOCX 
 
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2. a representative of the Connecticut Educators Computer 
Association, 
3. a secondary school teacher designated by the Connecticut 
Education Association, and 
4. an elementary school teacher designated by American 
Federation of Teachers–Connecticut. 
The bill also makes technical changes. 
Among other things, the commission serves as the principal 
education technology advisor for the state and develops, oversees, and 
directs the attainment of statewide technology goals. 
EFFECTIVE DATE:  July 1, 2021 
BACKGROUND 
Related Bills 
HB 6573 (File 475), reported favorably by the Government 
Administration and Elections Committee, contains identical provisions 
concerning the Commission for Educational Technology (§ 25 of this 
bill). 
HB 6601 (File 178), reported favorably by the Commerce and Higher 
Education and Employment Advancement c ommittees, contains 
identical provisions concerning pre-market product testing (§ 14 of this 
bill). 
Executive Order 49 
In May 2015, Governor Malloy issued Executive Order 49, which (1) 
subjects state contracts with a value of $50,000 or more in a calendar or 
fiscal year to the gift certification requirements that apply to contracts 
with a value of $500,000 or more and (2) requires state contractors 
subject to the gift certification requirements to also disclose in an 
affidavit all campaign contributions made to statewide office or 
legislative candidates. 
Penalty of False Statement  2021HB-06444-R01-BA.DOCX 
 
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By law, giving a false statement is a class A misdemeanor, 
punishable by up to one year in prison, up to a $2,000 fine, or both 
(CGS § 53a-157b).  
Ban on Campaign Contributions by State Contractors 
By law, for current and prospective state contractors, the existing 
ban is government branch specific. This means that for principals of 
contractors with executive branch or quasi-public agency contracts or 
contract solicitations, the ban applies to statewide office candidates. 
For those with legislative branch contracts or contract solicitations, the 
ban applies to legislative candidates. For pre-qualified contractors, the 
ban applies to candidates running for office in either branch. 
Additionally, the ban prohibits principals from making qualifying 
contributions to any candidates participating in the Citizens’ Election 
Program regardless of the branch (CGS § 9-704(e)). 
Set-Aside Program 
The state set-aside program requires state agencies and political 
subdivisions (other than municipalities; see below) to set aside 25% of 
the total value of all contracts they let for construction, goods, and 
services each year for exclusive bidding by certified small contractors. 
The agencies must further reserve 25% of the set-aside value (6.25% of 
the total) for exclusive bidding by certified minority business 
enterprises. Contractors awarded municipal public works contracts 
must comply with these requirements if the (1) contract includes state 
financial assistance and (2) total contract value exceeds $50,000. 
Federal Contracting Database 
The U.S. General Services Administration maintains a database 
known as the System for Award Management (SAM) . Contractors 
must register in SAM in order to access federal contracting 
opportunities. Businesses registering as a small business for federal 
contracting purposes must self-certify that they meet the U.S. Small 
Business Administration’s (SBA’s) standards for being a small 
business. 
Generally, SBA’s size standards vary by industry and are typically  2021HB-06444-R01-BA.DOCX 
 
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based on either a business’s annual receipts or average number of 
employees. According to a 2019 SBA report, receipts-based standards 
range from $750,000 to $38.5 million, while employee-based standards 
range from 100 to 1,500. 
CUETA 
CUETA establishes a legal foundation for using electronic 
communications in transactions where the parties, including state and 
local government agencies, have agreed to conduct business 
electronically. It validates the use of electronic records and signatures 
and places electronic commerce and paper-based commerce on the 
same legal footing. CUETA does not specifically authorize agencies to 
send notices, or any type of certified or registered mail, by e-mail, but 
rather sets requirements with which electronic transmissions must 
comply (CGS §§ 1-266 to 1-286). 
COMMITTEE ACTION 
Government Administration and Elections Committee 
Joint Favorable Substitute 
Yea 13 Nay 6 (03/31/2021)