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OLR Bill Analysis
sSB 1071
AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE
AUDITORS OF PUBLIC ACCOUNTS.
SUMMARY
This bill makes various changes in statutes about state auditors,
auditing, and other related topics. Among other things, the bill:
1. explicitly prohibits state agencies from denying the auditors
access to their records or accounts (§ 1);
2. (a) requires certain new or amended state contracts to contain a
provision allowing the agency to access any relevant data upon
demand, at no additional cost, and in the agency’s prescribed
format and (b) similarly allows the auditors access to this data
when auditing the agency (§§ 2 & 3);
3. requires state agencies to notify the auditors at least 15 days
before contracting for auditing services and prohibits agencies
from entering into these contracts until the auditors advise
whether they can perform the work instead (§ 4);
4. specifies that private providers of special education services are
subject to auditing requirements regardless of whether they
receive state or local funds directly or indirectly (§ 5);
5. eliminates provisions (a) requiring the state auditors to approve
an annual report by the Connecticut Retirement Security
Authority and (b) authorizing the state auditors to prescribe the
authority’s accounting methods and rendering of periodical
reports (§ 7);
6. reduces the (a) amount of time by which a municipality must
notify the Department of Administrative Services (DAS) of its 2021SB-01071-R000523-BA.DOCX
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intention to acquire surplus state property from 120 days to 60
days and (b) maximum extension that DAS may grant on this
deadline from 60 days to 30 days (§ 8);
7. conforms certain quasi-public statutes to the general biennial
audit requirement (§§ 6, 9-11 & 14-15);
8. extends provisions on prohibited activities that apply to state-
hired consultants and independent contractors under the ethics
code to also apply to people they employ (§ 12);
9. requires DAS, when reviewing final plans any phase of a school
building project for conformity with certain requirements (e.g.,
the State Building Code), to also review them for conformity
with school safety infrastructure criteria (§ 13);
10. replaces references to the Office of the Ombudsman within the
Department of Children and Families with its Office of
Community Relations (§§ 16 & 17); and
11. repeals a provision requiring state auditors to audit Bradley
Enterprise Fund reimbursements to the Department of
Emergency Services and Public Protection (§ 18).
The bill also makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2021, except the change to surplus
property deadlines is effective July 1, 2021.
§§ 2 & 3 — DATA ACCESS UNDER ST ATE CONTRACTS
State Agency Access (§ 2)
Beginning October 1, 2021, the bill requires any executed, renewed,
or amended contract between a state contracting agency and a
contractor to contain a data access provision. This provision must
authorize the state agency to access any contract-related data that the
contractor possesses or controls upon demand and in the agency’s
prescribed format at no additional cost.
It applies to any executive branch agency, board, commission, 2021SB-01071-R000523-BA.DOCX
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department, office, institution or council. It does not apply to the
judicial branch, legislative branch, or the offices of the secretary of the
state, state comptroller, attorney general, or state treasurer, with
respect to their constitutional functions, or any state agency with
respect to contracts specific to the constitutional and statutory
functions of the state treasurer‘s office.
Auditors’ Access (§ 3)
Under current law, the state auditors must audit, on a biennial basis
or as frequently as they deem necessary, the books and accounts of
each officer, department, commission, board, and court of state
government; all institutions supported by the state; and all public and
quasi-public bodies, politic and corporate, created by public or special
act of the General Assembly and not required to be audited or subject
to reporting requirements under the municipal auditing act.
The bill expands this requirement to also include an audit of records
of operations and activities and systems and data of these entities. It
specifies that each audit may include an examination of any relevant
information about the department, commission, board, or court of state
government being audited that is possessed or controlled by a private
entity contracted with these entities. The bill requires this information
to be provided upon demand in a format prescribed by the auditors at
no cost to the auditors or the department, commission, board or court.
§ 4 — AUDITING CONTRACTS
Beginning October 1, 2021, any state agency must notify the state
auditors at least 15 days before entering into or amending a contract to
purchase auditing services. It prohibits agencies from entering into or
amending such a contract until the auditors have advised whether
they can provide the auditing services instead. The bill applies this
requirement to each state board, authority, commission, department,
office, institution, council or other agency of the state, including public
higher education institution.
It excludes personal service agreements that (1) have a cost between
$20,000 to $50,000 and a term of up to one year and (2) cost more than 2021SB-01071-R000523-BA.DOCX
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$50,000 or exceed a one-year term. Under existing law, the Office of
Policy and Management secretary must immediately notify the state
auditors of any application that she receives for approval of a non-
competitively bid personal service agreement for audit services. She
must give the auditors the opportunity to advise her as to whether the
services (1) are necessary and, if so, (2) could be provided by the
auditors (CGS § 4-215).
§ 12 — CONFLICTS OF INTERES T FOR CONSULTANTS AN D
INDEPENDENT CONTRACT ORS
Currently, the law addressing conflicts of interest involving
consultants and independent contractors is limited to those hired by
state agencies. The bill similarly extends these prohibitions to persons
employed by these consultants and independent contractors. The
prohibited activities include:
1. using the person’s contractual authority, or any confidential
information acquired in the performance of the contract, to
obtain financial gain for the person, their employee, or their
immediate family member;
2. accepting another state contract that would impair the person’s
independent judgment in the performance of the existing
contract; or
3. accepting anything of value based on an understanding that the
actions of the person on behalf of the state would be influenced.
Current law similarly prohibits a person from giving anything of
value to a consultant or independent contractor hired by the state
based on an understanding that the actions of such consultant or
independent contractor would be influenced. Under the bill, this
prohibition extends to giving anything of value to a consultant’s or an
independent contractor’s employee under these circumstances.
BACKGROUND
Related Bills
sSB 1015 (§ 4), favorably reported by the Government 2021SB-01071-R000523-BA.DOCX
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Administration and Elections Committee, contains the same surplus
property provision as in (§ 8).
sHB 6426 (§ 2) (File 87), favorably reported by the Transportation
Committee, amends the same statute being repealed by (§ 18).
sHB 6574, favorably reported by the Government Administration
and Elections Committee, contains the same ethics code expansion to
people hired by state-hired consultants and independent contractors (§
12).
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable Substitute
Yea 19 Nay 0 (03/31/2021)