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OLR Bill Analysis
HB 6601
AN ACT PROMOTING ECONOMIC DEVELOPMENT AND
OPTIMIZING STATE SERVICES THROUGH THE USE OF
INNOVATIVE TECHNOLOGIES DEVELOPED IN CONNECTICUT.
SUMMARY
This bill expands the types of technologies, products, and processes
eligible for pre-market testing by state agencies. It allows the
Department of Administrative Services (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 the
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
program for participating agencies. Lastly, the bill makes technical and
conforming changes.
EFFECTIVE DATE: July 1, 2021
TESTING PROGRAM
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
of completing the test.
The bill extends testing eligibility to small and minority business
enterprises certified under the state’s set-aside program. It also 2021HB-06601-R000178-BA.DOCX
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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
consultation with the DAS commissioner, CI executive director, and
the 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 the 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 2021HB-06601-R000178-BA.DOCX
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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.
COMMITTEE ACTION
Commerce Committee
Joint Favorable
Yea 23 Nay 0 (03/11/2021)