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OLR Bill Analysis
sSB 1076
AN ACT CONCERNING PUBLIC -PRIVATE PARTNERSHIPS AND
PRIVATIZATION OF STATE SERVICES AT THE UNIVERSITY OF
CONNECTICUT HEALTH CENTER.
SUMMARY
This bill requires the UConn Health Center (UCHC) to obtain the
legislature’s approval before soliciting bids or issuing a request for
proposals (RFP) for any proposed privatization contract or public-
private partnership (P3) estimated to cost more than $1 million
annually. It requires a majority vote in both houses to approve the
solicitation or RFP; the legislature may reject it by a majority vote in
either house.
The bill specifies that UCHC’s compliance with the bill satisfies
existing law’s requirements for state agency privatization contracts
(see BACKGROUND).
EFFECTIVE DATE: July 1, 2021
REQUIREMENTS FOR PRI VATIZATION CONTRACTS AND P3
AGREEMENTS
Privatization and P3 Components
Under the bill, a privatization contract is an agreement or series of
agreements between UCHC and a person or entity to provide services
substantially similar to and in place of (in whole or in part) those
provided by UCHC employees. A P3 is the relationship between
UCHC and a private entity established by contracting for the
performance of any combination of specified functions or
responsibilities currently performed by UCHC.
As part of the submission to the legislature (see below), the bill
requires the health center’s chief executive officer to certify that all
projected costs, savings, and benefits are valid and achievable based on 2021SB-01076-R000494-BA.DOCX
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the data and information. (The bill does not specify what data and
information this refers to.) Under the bill, savings refers to the
difference between the services’ current annual direct and indirect
costs and the projected annual direct and indirect costs of contracting
to provide them in any succeeding state fiscal year during the
proposed contract’s term.
Under the bill, costs refers to all reasonable, relevant, and verifiable
expenses. They include salary, materials, supplies, services,
equipment, capital depreciation, rent, maintenance, repairs, utilities,
insurance, travel, overhead, interim and final payments, and the
normal cost of fringe benefits (i.e., the amount of contributions
calculated by the state comptroller that is required to fund the fringe
benefits allocated to the current year of service).
Submission to Legislature
The bill requires UCHC to submit the bid solicitation or RFP to the
House and Senate clerks with a copy to the Government
Administration and Elections and Higher Education and Employment
Advancement committees. It allows the submission to be electronic. If
the legislature is in session, it must vote on the proposal within 30 days
after its submission. The bill specifies that the 30-day period cannot
begin or end if the legislature is not in regular session.
Under the bill, if the legislature is out of session when a solicitation
or RFP is filed with the clerks, then it must be submitted to the
legislature within 10 days after the start of the next regular session, or
a special session called for that purpose. However, the bill deems any
solicitation or RFP filed with the clerks within 30 days before a regular
session as being filed on the first day of session.
Legislative Approval
The bill requires a majority vote in both houses to approve the
solicitation or RFP; the legislature may reject it by a majority vote in
either house. (The bill does not specify what happens if the legislature
does not act within the 30-day timeframe.) 2021SB-01076-R000494-BA.DOCX
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BACKGROUND
Privatization Law
By law, if a state contracting agency seeks to enter into a contract
that privatizes services performed by state employees, it generally
must conduct a cost-benefit analysis and submit a business case to the
State Contracting Standards Board for its approval. The business case
must include, among other things, the cost-benefit analysis and 11
other analyses relating to the privatized service, such as its goals and
their rationale, and options for achieving them (CGS § 4e-16(d)).
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable
Yea 18 Nay 0 (03/29/2021)