Connecticut 2022 Regular Session

Connecticut House Bill HB05225 Compare Versions

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7		-	General Assembly Substitute Bill No. 5225
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	6	+	LCO No. 1455 1 of 4
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	8	+	General Assembly Raised Bill No. 5225
8	9		February Session, 2022
	10	+	LCO No. 1455
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	13	+	Referred to Committee on HUMAN SERVICES
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	15	+
	16	+	Introduced by:
	17	+	(HS)
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14	22		AN ACT PROHIBITING CLAWBACK OF CERTAIN FUNDS RETAINED
15	23		BY NONPROFIT PROVIDERS OF HUMAN SERVICES UNDER
16	24		CONTRACT WITH STATE AGENCIES.
17	25		Be it enacted by the Senate and House of Representatives in General
18	26		Assembly convened:
19	27
20	28		Section 1. (NEW) (Effective July 1, 2022) (a) As used in this section, (1) 1
21	29		"private provider organization" has the same meaning as provided in 2
22	30		section 4-70b of the general statutes, (2) "human services" means services 3
23	31		provided under contract with a state agency that directly support the 4
24	32		health, safety and welfare of residents who may have conditions that 5
25	33		include, but are not limited to, intellectual, physical or mental 6
26	34		disabilities or autism spectrum disorder, (3) "state agency" has the same 7
27	35		meaning as provided in section 1-79 of the general statutes, and (4) 8
28	36		"attempt to recover or otherwise offset" means (A) efforts to recoup 9
29	37		excess funds at the end of each contract term or fiscal year, (B) 10
30	38		reductions in contracted amounts for the same or similar services from 11
31	39		one contract period to the next contract period, or (C) demands for other 12
32		-	reimbursement of state funds from such organization. 13
33		-	(b) Subject to the provisions of subsection (c) of this section and 14
34		-	within available appropriations, each state agency that contracts with a 15
35		-	nonprofit private provider organization to provide human services shall 16
36		-	establish an incentive program that allows such nonprofit organization 17 Substitute Bill No. 5225
	40	+	reimbursement of state funds from such organizations. 13
	41	+	(b) Each state agency that contracts with a nonprofit private provider 14 Raised Bill No. 5225
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43		-	that otherwise meets contractual requirements to retain any excess 18
44		-	funds from the contracted cost for services at the end of a contract term. 19
45		-	No state agency shall attempt to recover or otherwise offset funds 20
46		-	retained by such nonprofit organization from the contracted cost for 21
47		-	services, provided such nonprofit organization (1) meets its contractual 22
48		-	obligations with such state agency, and (2) reports to the contracting 23
49		-	state agency in a time and manner such agency prescribes on how excess 24
50		-	funds retained from the contracted cost for services were reinvested to 25
51		-	strengthen quality of human services, invest in deferred maintenance 26
52		-	and make asset improvements. 27
53		-	(c) Notwithstanding the provisions of subsection (b) of this section, a 28
54		-	state agency shall not allow a nonprofit private provider organization 29
55		-	that contracts with the state to provide human services to retain excess 30
56		-	funds from the contracted cost for services under a contract funded in 31
57		-	whole, or in part, with federal funds when allowing such organization 32
58		-	to retain such funds will jeopardize federal funding or reimbursement 33
59		-	for such contract. 34
60		-	Sec. 2. (NEW) (Effective July 1, 2022) The Commissioner of 35
61		-	Developmental Services, in consultation with the Secretary of the Office 36
62		-	of Policy and Management, may extend the provisions of section 1 of 37
63		-	this act to other providers with which the Department of Developmental 38
64		-	Services contracts, provided they (1) meet their contractual obligations 39
65		-	with the commissioner, and (2) submit reports to the commissioner in a 40
66		-	time and manner the commissioner prescribes on how excess funds they 41
67		-	retained from the contracted cost for services were reinvested to 42
68		-	strengthen quality of human services, invest in deferred maintenance 43
69		-	and make asset improvements. 44
70		-	Sec. 3. Section 4-216 of the 2022 supplement to the general statutes is 45
71		-	repealed and the following is substituted in lieu thereof (Effective July 1, 46
72		-	2022): 47
73		-	(a) No state agency may execute a personal service agreement having 48
74		-	a cost of more than fifty thousand dollars or a term of more than one 49 Substitute Bill No. 5225
	45	+	LCO No. 1455 2 of 4
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	47	+	organization that provides human services shall establish an incentive 15
	48	+	program that allows such nonprofit organization that otherwise meets 16
	49	+	contractual requirements to retain any savings realized by such 17
	50	+	nonprofit organization from the contracted cost for services. No state 18
	51	+	agency shall attempt to recover or otherwise offset funds obtained or 19
	52	+	retained by such nonprofit organization from the contracted cost for the 20
	53	+	services, provided such nonprofit organization (1) meets its contractual 21
	54	+	obligations with such state agency, and (2) annually reports to the 22
	55	+	contracting state agency on how excess funds were reinvested to 23
	56	+	strengthen quality of human services, invest in deferred maintenance 24
	57	+	and make asset improvements. 25
	58	+	(c) The Commissioner of Developmental Services, in consultation 26
	59	+	with the Secretary of the Office of Policy and Management, may extend 27
	60	+	the provisions of this section to other providers with which the 28
	61	+	Department of Developmental Services contracts, provided the 29
	62	+	contractors (1) meet their contractual obligations with the 30
	63	+	commissioner, and (2) submit annual reports to the commissioner on 31
	64	+	how excess funds were reinvested to strengthen quality of human 32
	65	+	services, invest in deferred maintenance and make asset improvements. 33
	66	+	Sec. 2. Section 4-216 of the 2022 supplement to the general statutes is 34
	67	+	repealed and the following is substituted in lieu thereof (Effective July 1, 35
	68	+	2022): 36
	69	+	(a) No state agency may execute a personal service agreement having 37
	70	+	a cost of more than fifty thousand dollars or a term of more than one 38
	71	+	year, without the approval of the secretary. A state agency may apply 39
	72	+	for an approval by submitting the following information to the 40
	73	+	secretary: (1) A description of the services to be purchased and the need 41
	74	+	for such services; (2) an estimate of the cost of the services and the term 42
	75	+	of the agreement; (3) whether the services are to be on-going; (4) 43
	76	+	whether the state agency has contracted out for such services during the 44
	77	+	preceding two years and, if so, the name of the contractor, term of the 45
	78	+	agreement with such contractor and the amount paid to the contractor; 46
	79	+	(5) whether any other state agency has the resources to provide the 47 Raised Bill No. 5225
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81		-	year, without the approval of the secretary. A state agency may apply 50
82		-	for an approval by submitting the following information to the 51
83		-	secretary: (1) A description of the services to be purchased and the need 52
84		-	for such services; (2) an estimate of the cost of the services and the term 53
85		-	of the agreement; (3) whether the services are to be on-going; (4) 54
86		-	whether the state agency has contracted out for such services during the 55
87		-	preceding two years and, if so, the name of the contractor, term of the 56
88		-	agreement with such contractor and the amount paid to the contractor; 57
89		-	(5) whether any other state agency has the resources to provide the 58
90		-	services; (6) whether the agency intends to purchase the services by 59
91		-	competitive negotiation and, if not, why; and (7) whether it is possible 60
92		-	to purchase the services on a cooperative basis with other state agencies. 61
93		-	The secretary shall approve or disapprove an application within fifteen 62
94		-	business days after receiving it and any necessary supporting 63
95		-	information, provided if the secretary does not act within such 64
96		-	fifteen-day period the application shall be deemed to have been 65
97		-	approved. The secretary shall immediately notify the Auditors of Public 66
98		-	Accounts of any application which the secretary receives for approval 67
99		-	of a personal services agreement for audit services and give said 68
100		-	auditors an opportunity to review the application during such fifteen-69
101		-	day period and advise the secretary as to whether such audit services 70
102		-	are necessary and, if so, could be provided by said auditors. 71
103		-	(b) Each personal service agreement having a cost of more than fifty 72
104		-	thousand dollars or a term of more than one year shall be based on 73
105		-	competitive negotiation or competitive quotations, unless the state 74
106		-	agency purchasing the personal services applies to the secretary for a 75
107		-	waiver from such requirement and the secretary grants the waiver in 76
108		-	accordance with the guidelines adopted under section 4-215. 77
109		-	[(c) The secretary shall establish an incentive program for nonprofit 78
110		-	providers of human services that shall (1) allow providers who 79
111		-	otherwise meet contractual requirements to retain any savings realized 80
112		-	by the providers from the contracted cost for services, and (2) provide 81
113		-	that future contracted amounts from the state for the same types of 82 Substitute Bill No. 5225
	83	+	LCO No. 1455 3 of 4
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	85	+	services; (6) whether the agency intends to purchase the services by 48
	86	+	competitive negotiation and, if not, why; and (7) whether it is possible 49
	87	+	to purchase the services on a cooperative basis with other state agencies. 50
	88	+	The secretary shall approve or disapprove an application within fifteen 51
	89	+	business days after receiving it and any necessary supporting 52
	90	+	information, provided if the secretary does not act within such 53
	91	+	fifteen-day period the application shall be deemed to have been 54
	92	+	approved. The secretary shall immediately notify the Auditors of Public 55
	93	+	Accounts of any application which the secretary receives for approval 56
	94	+	of a personal services agreement for audit services and give said 57
	95	+	auditors an opportunity to review the application during such fifteen-58
	96	+	day period and advise the secretary as to whether such audit services 59
	97	+	are necessary and, if so, could be provided by said auditors. 60
	98	+	(b) Each personal service agreement having a cost of more than fifty 61
	99	+	thousand dollars or a term of more than one year shall be based on 62
	100	+	competitive negotiation or competitive quotations, unless the state 63
	101	+	agency purchasing the personal services applies to the secretary for a 64
	102	+	waiver from such requirement and the secretary grants the waiver in 65
	103	+	accordance with the guidelines adopted under section 4-215. 66
	104	+	[(c) The secretary shall establish an incentive program for nonprofit 67
	105	+	providers of human services that shall (1) allow providers who 68
	106	+	otherwise meet contractual requirements to retain any savings realized 69
	107	+	by the providers from the contracted cost for services, and (2) provide 70
	108	+	that future contracted amounts from the state for the same types of 71
	109	+	services are not reduced solely to reflect savings achieved in previous 72
	110	+	contracts by such providers. For purposes of this subsection, "nonprofit 73
	111	+	providers of human services" includes, but is not limited to, nonprofit 74
	112	+	providers of services to persons with intellectual, physical or mental 75
	113	+	disabilities or autism spectrum disorder. Any nonprofit provider of 76
	114	+	human services allowed to retain savings under the incentive program 77
	115	+	shall submit a report to the secretary on how excess funds were 78
	116	+	reinvested to strengthen quality, invest in deferred maintenance and 79
	117	+	make asset improvements.] 80 Raised Bill No. 5225
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120		-	services are not reduced solely to reflect savings achieved in previous 83
121		-	contracts by such providers. For purposes of this subsection, "nonprofit 84
122		-	providers of human services" includes, but is not limited to, nonprofit 85
123		-	providers of services to persons with intellectual, physical or mental 86
124		-	disabilities or autism spectrum disorder. Any nonprofit provider of 87
125		-	human services allowed to retain savings under the incentive program 88
126		-	shall submit a report to the secretary on how excess funds were 89
127		-	reinvested to strengthen quality, invest in deferred maintenance and 90
128		-	make asset improvements.] 91
	121	+	LCO No. 1455 4 of 4
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129	123		This act shall take effect as follows and shall amend the following
130	124		sections:
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132	126		Section 1 July 1, 2022 New section
133		-	Sec. 2 July 1, 2022 New section
134		-	Sec. 3 July 1, 2022 4-216
	127	+	Sec. 2 July 1, 2022 4-216
135	128
136		-	Statement of Legislative Commissioners:
137		-	In Section 1(b), "that provides" was changed to "to provide" and
138		-	"contracted cost" was changed to "contracted cost for services" for clarity
139		-	and consistency; in Section 1(c), "provider organization" was changed to
140		-	"provider organization that contracts with the state to provide human
141		-	services" and "of services" was changed to "for services" for consistency;
142		-	and in Section 2, the designator "(a)" was deleted and "cost of services"
143		-	was changed to "cost for services" for consistency.
144		-
145		-	HS Joint Favorable Subst.
	129	+	Statement of Purpose:
	130	+	To prevent state agencies from recouping funds retained by nonprofit,
	131	+	private providers of human services who meet contractual obligations
	132	+	and report on use of excess funds.
	133	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	134	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	135	+	underlined.]
146	136