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OLR Bill Analysis
sHB 6577
AN ACT CONCERNING THE STATE PROPERTIES REVIEW
BOARD.
SUMMARY
This bill expands the State Properties Review Board's (SPRB)
authority to include reviewing and approving numerous additional
property transactions. Among other things, these transactions include
(1) any real estate acquisition made by a state agency that is paid for
with state general obligation (GO) bonds, (2) certain real estate
transactions proposed by quasi-public agencies, (3) certain real
property transactions entered into by the Department of
Transportation (DOT) commissioner that are not already subject to the
board's authority, and (4) certain project-specific transactions entered
into by specified state agencies.
Additionally, the bill reduces, from $100,000 to $25,000, the cost
threshold of construction services consultant contracts entered into by
the Department of Administrative Services (DAS) that require SPRB
review. It also moves the board from the executive branch to the
legislative branch. Currently, it is within DAS for administrative
purposes only.
Lastly, the bill makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2021
SPRB AUTHORITY
State and Quasi-Public Agencies
The bill requires SPRB to review, for approval or disapproval, (1)
any real estate acquisition made by a state agency that is paid for with
GO bonds and (2) leases, subleases, licensing, or other real property
contractual arrangements (except for mortgage loans) proposed by a 2021HB-06577-R000505-BA.DOCX
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quasi-public agency. It grants SPRB access to all information, files, and
records held by these agencies and quasi-public agencies. (Existing law
already grants the board this access to all of the DAS and DOT
commissioners' information, files, and records.) The bill eliminates a
provision in current law allowing SPRB to use DAS and DOT
personnel when necessary.
Additionally, current law requires SPRB to review real estate
acquisitions, sales, leases, and subleases proposed by the DAS
commissioner and the chief court administrator. The bill requires the
board to review these transactions for approval or disapproval.
DOT Transactions
The bill expands the types of DOT property transactions subject to
the board's authority. Under current law, SPRB must review, for
approval or disapproval, DOT acquisitions (other than by
condemnation), sales, or leases of any property required to develop
and operate a safe and efficient transportation system (CGS §§ 13a-
73(h) & 13b-4(11)). The bill (1) additionally subjects to SPRB review
and approval licenses or other contractual arrangements involving
these properties and (2) specifies that the board's authority applies to
transactions involving real property.
Additionally, the bill subjects to SPRB's review and approval sales,
leases, conveyance, licenses, or other contractual arrangements for real
property the DOT commissioner has purchased or taken for operating
or improving transportation services (CGS § 13b-36(b)).
Project-Specific Transactions
Under existing law, the DAS commissioner is generally the sole
person authorized to represent the state in dealing with third parties
for leases and other acquisitions of state office space. The law
establishes several exceptions whereby another agency may represent
the state with respect to a specific project (e.g., the Legislative
Management Committee).
The bill requires SPRB to review and approve transactions made 2021HB-06577-R000505-BA.DOCX
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under each of these exceptions, as shown in Table 1 below.
Table 1: Project-Specific Transactions Subjected to SPRB Authority
Agency Covered Transactions
Legislative
Management
Committee
Planning and construction of the Legislative Office Building
Judicial branch Space for the Court Support Services Division as part of a new or existing
contract for an alternative incarceration program
The branch's other real estate needs when delegated this authority by DAS
(These transactions are already subject to SPRB review under current law, but
are also subject to the board's review and approval or disapproval under the
bill)
UConn and the
Board of Regents
for Higher
Education
Leasing real estate for housing offices or equipment, provided the lease is not
paid for from the General Fund
Labor
Department
Leasing premises for employment security operations (existing law already
requires SPRB's approval for these transactions (CGS § 31-250(c)))
Department of
Developmental
Services
Leasing residential property of up to 2500 square feet for community placement
services (Existing law already requires SPRB's approval for these transactions
(CGS § 4b-23(j)))
Department of
Mental Health
and Addiction
Services
Leasing residential units of up to 2500 square feet for people receiving
department services
Connecticut
Marketing
Authority
Leasing land or markets under the authority's control (see below)
(Under current law, the marketing authority is subject to SPRB's authority only
for the housing of offices or equipment in connection with initially acquiring an
existing state mass transit system or the leasing of land by the authority for a
term of one year or more)
CONSTRUCTION CONSULT ANT CONTRACTS
Current law requires DAS to obtain SPRB's approval for (1)
construction consultant services contracts (e.g., architecture and 2021HB-06577-R000505-BA.DOCX
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engineering) that exceed $1000,000 and (2) on-call contract task letters
exceeding this threshold (see BACKGROUND).
The bill reduces both thresholds to $25,000. It retains current law's
$300,000 threshold for consultant services contracts entered into by
higher education institutions or the judicial branch.
BACKGROUND
On-Call Contract
An on-call contract defines a broad range of consultant services
(e.g., architectural services, professional engineers, accountants, and
others) and is generally valid for two to three years. An on-call
contract is generally not connected to a specific project; rather, DAS
subsequently issues task letters to firms with on-call contracts that
identify a specific scope of services to be performed and the fee for
those services.
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable Substitute
Yea 19 Nay 0 (03/31/2021)