LCO No. 3459 1 of 60 General Assembly Raised Bill No. 473 February Session, 2022 LCO No. 3459 Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS Introduced by: (GAE) AN ACT CONCERNING THE STATE CONTRACTING STANDARDS BOARD. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective from passage) (a) Notwithstanding any 1 provision of the general statutes, the appropriations recommended for 2 the State Contracting Standards Board shall be the estimates of 3 expenditure requirements transmitted to the Secretary of the Office of 4 Policy and Management by the executive director of the board and the 5 recommended adjustments and revisions of such estimates shall be the 6 recommended adjustments and revisions, if any, transmitted by said 7 executive director to the Office of Policy and Management. 8 (b) Notwithstanding any provision of the general statutes, the 9 Governor shall not reduce allotment requisitions or allotments in force 10 concerning the State Contracting Standards Board. 11 Sec. 2. (Effective July 1, 2022) Not later than September 22, 2022, the 12 State Contracting Standards Board shall hire five employees as required 13 under subsection (h) of section 4e-2 of the general statutes, as amended 14 Raised Bill No. 473 LCO No. 3459 2 of 60 by this act. 15 Sec. 3. Section 4e-1 of the general statutes is repealed and the 16 following is substituted in lieu thereof (Effective July 1, 2022): 17 For the purposes of [sections 4e-1] this section and sections 4e-2 to 4e-18 47, inclusive, as amended by this act: 19 (1) "Best value selection" means a contract selection process in which 20 the award of a contract is based on a combination of quality, timeliness 21 and cost factors; 22 (2) "Bid" means an offer, submitted in response to an invitation to bid, 23 to furnish supplies, materials, equipment, construction or contractual 24 services to a [state] contracting agency under prescribed conditions at a 25 stated price; 26 (3) "Bidder" means a business submitting a bid in response to an 27 invitation to bid by a [state] contracting agency; 28 (4) "Business" means any individual or sole proprietorship, 29 partnership, firm, corporation, trust, limited liability company, limited 30 liability partnership, joint stock company, joint venture, association or 31 other legal entity through which business for profit or not-for-profit is 32 conducted; 33 (5) "Competitive bidding" means the submission of prices by a 34 business competing for a contract to provide supplies, materials, 35 equipment or contractual services to a [state] contracting agency, under 36 a procedure in which the contracting authority does not negotiate 37 prices, as set forth in statutes and regulations concerning procurement; 38 (6) "Consultant" means (A) any architect, professional engineer, 39 landscape architect, land surveyor, accountant, interior designer, 40 environmental professional or construction administrator, who is 41 registered or licensed to practice such person's profession in accordance 42 with the applicable provisions of the general statutes, (B) any planner or 43 any environmental, management or financial specialist, or (C) any 44 Raised Bill No. 473 LCO No. 3459 3 of 60 person who performs professional work in areas including, but not 45 limited to, educational services, medical services, information 46 technology and real estate appraisal; 47 (7) "Consultant services" means those professional services rendered 48 by a consultant and any incidental services that a consultant and those 49 in the consultant's employ are authorized to perform; 50 (8) "Contract" [or "state contract"] means an agreement or a 51 combination or series of agreements between a [state] contracting 52 agency [or quasi-public agency] and a business for: 53 (A) A project for the construction, reconstruction, alteration, 54 remodeling, repair or demolition of any public building, public work, 55 mass transit, rail station, parking garage, rail track or airport; 56 (B) Services, including, but not limited to, consultant and professional 57 services; 58 (C) The acquisition or disposition of personal property; 59 (D) The provision of goods and services, including, but not limited 60 to, the use of purchase of services contracts and personal service 61 agreements; 62 (E) The provision of information technology, state agency 63 information system or telecommunication system facilities, equipment 64 or services; 65 (F) A lease; or 66 (G) A licensing agreement; 67 "Contract" [or "state contract"] does not include a contract between a 68 state agency or a quasi-public agency and a political subdivision of the 69 state; 70 (9) "Term contract" means the agreement reached when the state, a 71 quasi-public agency or a municipality accepts a bid or proposal to 72 Raised Bill No. 473 LCO No. 3459 4 of 60 furnish supplies, materials, equipment or contractual services at a stated 73 price for a specific period of time in response to an invitation to bid; 74 (10) "Contract risk assessment" means (A) the identification and 75 evaluation of loss exposures and risks, including, but not limited to, 76 business and legal risks associated with the contracting process and the 77 contracted goods and services, and (B) the identification, evaluation and 78 implementation of measures available to minimize potential loss 79 exposures and risks; 80 (11) "Contractor" means any business that is awarded, or is a 81 subcontractor under, a contract or an amendment to a contract with a 82 [state] contracting agency under statutes and regulations concerning 83 procurement, including, but not limited to, a small contractor, minority 84 business enterprise, an individual with a disability, as defined in section 85 4a-60, or an organization providing products and services by persons 86 with disabilities; 87 (12) "Contractual services" means the furnishing of labor by a 88 contractor, not involving the delivery of a specific end product other 89 than reports, which are merely incidental to the required performance 90 and includes any and all laundry and cleaning service, pest control 91 service, janitorial service, security service, the rental and repair, or 92 maintenance, of equipment, machinery and other [state-owned] 93 personal property owned by a contracting agency, advertising and 94 photostating, mimeographing, human services and other service 95 arrangements where the services are provided by persons other than 96 state employees, quasi-public agency employees or municipal 97 employees. "Contractual services" includes the design, development 98 and implementation of technology, communications or 99 telecommunications systems or the infrastructure pertaining thereto, 100 including hardware and software and services for which a contractor is 101 conferred a benefit by the state, a quasi-public agency or a municipality 102 whether or not compensated by the state, a quasi-public agency or a 103 municipality. "Contractual services" does not include employment 104 agreements or collective bargaining agreements; 105 Raised Bill No. 473 LCO No. 3459 5 of 60 (13) "Data" means recorded information, regardless of form or 106 characteristic; 107 (14) "Vote of two-thirds of the members of the board present and 108 voting" means a vote by the State Contracting Standards Board that is 109 agreed upon by two-thirds of the members of the State Contracting 110 Standards Board present and voting for a particular purpose and that 111 includes the vote of one member of the board appointed by a legislative 112 leader; 113 (15) "Electronic" means electrical, digital, magnetic, optical, 114 electromagnetic, or any other similar technology; 115 (16) "Emergency procurement" means procurement by a [state] 116 contracting agency, [quasi-public agency, as defined in section 1-120,] 117 judicial department or constituent unit of higher education that is made 118 necessary by a sudden, unexpected occurrence that poses a clear and 119 imminent danger to public safety or requires immediate action to 120 prevent or mitigate the loss or impairment of life, health, property or 121 essential public services or in response to a court order, settlement 122 agreement or other similar legal judgment; 123 (17) "Equipment" means personal property of a durable nature that 124 retains its identity throughout its useful life; 125 (18) "Materials" means items required to perform a function or used 126 in a manufacturing process, particularly those incorporated into an end 127 product or consumed in its manufacture; 128 (19) "Nonprofit agency" means any organization that is not a for-129 profit business under Section 501(c)(3) of the Internal Revenue Code of 130 1986, or any subsequent corresponding internal revenue code of the 131 United States, as amended from time to time, [amended,] makes no 132 distribution to its members, directors or officers and provides services 133 contracted for by (A) the state, a quasi-public agency or a municipality, 134 or (B) a nonstate entity; 135 Raised Bill No. 473 LCO No. 3459 6 of 60 (20) "Professional services" means any type of service to the public 136 that requires that members of a profession rendering such service obtain 137 a license or other legal authorization as a condition precedent to the 138 rendition thereof, including, but not limited to, the professional services 139 of architects, professional engineers, or jointly by architects and 140 professional engineers, landscape architects, certified public 141 accountants and public accountants, land surveyors, attorneys-at-law, 142 psychologists, licensed marital and family therapists, licensed 143 professional counselors and licensed clinical social workers as well as 144 such other professional services described in section 33-182a; 145 (21) "Privatization contract" means an agreement or series of 146 agreements between a [state] contracting agency of the state and a 147 person or entity in which such person or entity agrees to provide 148 services that are substantially similar to and in lieu of services provided, 149 in whole or in part, by state employees, other than contracts with a 150 nonprofit agency, which are in effect as of January 1, 2009, and which 151 through a renewal, modification, extension or rebidding of contracts 152 continue to be provided by a nonprofit agency; 153 (22) "Procurement" means contracting for, buying, purchasing, 154 renting, leasing or otherwise acquiring or disposing of, any supplies, 155 services, including, but not limited to, contracts for purchase of services 156 and personal service agreements, interest in real property, or 157 construction, and includes all government functions that relate to such 158 activities, including best value selection and qualification based 159 selection; 160 (23) "Proposer" means a business submitting a proposal to a [state] 161 contracting agency in response to a request for proposals or other 162 competitive sealed proposal; 163 (24) "Public record" means a public record, as defined in section 1-164 200; 165 (25) "Qualification based selection" means a contract selection process 166 in which the award of a contract is primarily based on an assessment of 167 Raised Bill No. 473 LCO No. 3459 7 of 60 contractor qualifications and on the negotiation of a fair and reasonable 168 price; 169 (26) "Regulation" means regulation, as defined in section 4-166; 170 (27) "Request for proposals" means all documents, whether attached 171 or incorporated by reference, utilized for soliciting proposals; 172 (28) ["State contracting agency"] "Contracting agency" means any 173 executive branch agency, board, commission, department, office, 174 institution or council, quasi-public agency or municipality. "State 175 contracting agency" does not include the judicial branch, the legislative 176 branch, the offices of the Secretary of the State, the State Comptroller, 177 the Attorney General, the State Treasurer, with respect to their 178 constitutional functions, any state agency with respect to contracts 179 specific to the constitutional and statutory functions of the office of the 180 State Treasurer. For the purposes of section 4e-16, ["state contracting 181 agency"] as amended by this act, "contracting agency" includes any 182 constituent unit of the state system of higher education; [and for the 183 purposes of section 4e-19, "state contracting agency" includes the State 184 Education Resource Center, established under section 10-4q;] 185 (29) "Subcontractor" means a subcontractor of a contractor for work 186 under a contract or an amendment to a contract; 187 (30) "Supplies" means any and all articles of personal property, 188 including, but not limited to, equipment, materials, printing, insurance 189 and leases of real property, excluding land or a permanent interest in 190 land furnished to or used by any state agency, quasi-public agency or 191 municipality; 192 (31) "Infrastructure facility" means a building, structure or network 193 of buildings, structures, pipes, controls and equipment that provide 194 transportation, utilities, public education or public safety services. 195 [Infrastructure facility] "Infrastructure facility" includes government 196 office buildings, public schools, jails, water treatment plants, 197 distribution systems and pumping stations, wastewater treatment 198 Raised Bill No. 473 LCO No. 3459 8 of 60 plants, collections systems and pumping stations, solid waste disposal 199 plants, incinerators, landfills, and related facilities, public roads and 200 streets, highways, public parking facilities, public transportation 201 systems, terminals and rolling stock, rail, air and water port structures, 202 terminals and equipment; [and] 203 (32) "State employee" means state employee, as defined in section 5-204 154 and, for purposes of section 4e-16, [state employee] as amended by 205 this act, "state employee" includes an employee of any [state] contracting 206 agency [.] of the state; 207 (33) "Municipality" means any town, city, borough, consolidated 208 town and city or consolidated town and borough; and 209 (34) "Quasi-public agency" has the same meaning as provided in 210 section 1-120. 211 Sec. 4. Subsections (f) to (h), inclusive, of section 4e-2 of the general 212 statutes are repealed and the following is substituted in lieu thereof 213 (Effective July 1, 2022): 214 (f) The Governor shall appoint an executive director of the board who 215 shall serve as an ex-officio, nonvoting member of the board. The 216 executive director shall be appointed in accordance with the provisions 217 of section 4-7 and may be removed from office for reasonable cause, in 218 accordance with chapter 67. The board may recommend that the 219 Governor appoint as executive director a person who has retired from 220 state service after serving as the executive director of the board. The 221 board shall, annually, conduct a performance evaluation of such 222 executive director. The executive director shall report to the chairperson 223 of the board and, in consultation with the Chief Procurement Officer, (1) 224 conduct comprehensive planning with respect to the administrative 225 functions of the board; (2) coordinate the budget and personnel 226 activities of the board; (3) cause the administrative organization of the 227 board to be examined with a view to promoting economy and efficiency; 228 (4) act as the external liaison for the board; and (5) execute such other 229 duties as may be assigned by the chairperson of the board or the board, 230 Raised Bill No. 473 LCO No. 3459 9 of 60 as applicable. The executive director may enter into such contractual 231 agreements as may be necessary for the discharge of the director's 232 duties. 233 (g) The board shall appoint a Chief Procurement Officer for a term 234 not to exceed six years, unless reappointed pursuant to the provisions 235 of this subsection. The Chief Procurement Officer shall report to the 236 board and annually be evaluated by, and serve at the pleasure of, the 237 board. For administrative purposes only, the Chief Procurement Officer 238 shall be supervised by the executive director. 239 (1) The Chief Procurement Officer shall be responsible for carrying 240 out the policies of the board relating to procurement including, but not 241 limited to, oversight, investigation, auditing, agency procurement 242 certification and procurement and project management training and 243 enforcement of said policies as well as the application of such policies to 244 the screening and evaluation of current and prospective contractors. The 245 Chief Procurement Officer may enter into such contractual agreements 246 as may be necessary for the discharge of the duties as set forth in this 247 subsection and by the board, including, but not limited to, 248 recommending best practices and providing operational and 249 administrative assistance to [state] contracting agencies determined, by 250 the board, to be in violation of sections 4e-16 to 4e-47, inclusive, as 251 amended by this act. 252 (2) In addition to the duties set forth by the board, the Chief 253 Procurement Officer shall (A) oversee [state] contracting agency 254 compliance with the provisions of statutes and regulations concerning 255 procurement; (B) monitor and assess the performance of the 256 procurement duties of each agency procurement officer; (C) administer 257 the certification system and monitor the level of agency compliance with 258 the requirements of statutes and regulations concerning procurement, 259 including, but not limited to, the education and training, performance 260 and qualifications of agency procurement officers; (D) review and 261 monitor the procurement processes of each [state] contracting agency of 262 the state, quasi-public agencies and institutions of higher education; and 263 Raised Bill No. 473 LCO No. 3459 10 of 60 (E) serve as chairperson of the Contracting Standards Advisory Council 264 and an ex-officio member of the Vendor and Citizen Advisory Panel. 265 (h) The board may contract with consultants and professionals on a 266 temporary or project by project basis and [may] shall employ, subject to 267 the provisions of chapter 67, [such] not less than five full-time 268 employees and may employ such additional employees as may be 269 necessary to carry out the provisions of this section. 270 Sec. 5. Section 4e-3 of the general statutes is repealed and the 271 following is substituted in lieu thereof (Effective July 1, 2022): 272 (a) All rights, powers, duties and authority relating to the 273 procurement policies of the state, vested in, or exercised by, any [state] 274 contracting agency may also be exercised by the board, provided such 275 rights, powers, duties and authority may be exercised by the board as 276 provided in this section and sections 4e-4 to 4e-47, inclusive, as amended 277 by this act, and absent any affirmative action by the board, pursuant to 278 said sections, shall not be deemed to limit or restrict the exercise of such 279 rights, powers, duties and authority by any such [state] contracting 280 agency. Such rights, powers, duties and authority shall include the 281 following: 282 (1) Acquisition of supplies, services, and construction, and the 283 management, control, warehousing, sale, and disposal of supplies, 284 services, and construction; 285 (2) Any state, quasi-public or municipal contracting and procurement 286 processes, including, but not limited to, leasing and property transfers, 287 purchasing or leasing of supplies, materials or equipment, consultant or 288 consultant services, purchase of service agreements or privatization 289 contracts; and 290 (3) Contracts for the construction, reconstruction, alteration, 291 remodeling, repair or demolition of any public building. 292 (b) Notwithstanding any provision of chapter 14, upon request by the 293 Raised Bill No. 473 LCO No. 3459 11 of 60 board, each [state] contracting agency, including institutions of higher 294 education, shall provide the board, in a timely manner, with such 295 procurement information as the board deems necessary. The board shall 296 have access to all information, files and records related to any [state] 297 contracting agency in furtherance of the board's duties, as described in 298 this section and sections 4e-4 to 4e-47, inclusive, as amended by this act. 299 Nothing in this section shall be construed to require the board's 300 disclosure of documents that are exempt from disclosure pursuant to 301 chapter 14. 302 Sec. 6. Section 4e-4 of the general statutes is repealed and the 303 following is substituted in lieu thereof (Effective July 1, 2022): 304 Except as otherwise provided in the general statutes, the board shall 305 have the following authority and responsibilities with respect to 306 procurements by [state] contracting agencies: 307 (a) Recommend the repeal of repetitive, conflicting or obsolete 308 statutes concerning [state] procurement; 309 (b) Review and make recommendations concerning proposed 310 legislation and regulations concerning procurement, management, 311 control, and disposal of any and all supplies, services, and construction 312 to be procured by [the state] contracting agencies, including, but not 313 limited to: 314 (1) Conditions and procedures for delegation of procurement 315 authority; 316 (2) Prequalification, suspension, debarment and reinstatement of 317 prospective bidders and contractors; 318 (3) Small purchase procedures; 319 (4) Conditions and procedures for the procurement of perishables 320 and items for resale; 321 (5) Conditions and procedures for the use of source selection methods 322 Raised Bill No. 473 LCO No. 3459 12 of 60 authorized by statutes and regulations concerning procurement; 323 (6) Conditions and procedures for the use of emergency 324 procurements; 325 (7) Conditions and procedures for the selection of contractors by 326 processes or methods that restrict full and open competition; 327 (8) The opening or rejection of bids and offers, and waiver of errors 328 in bids and offers; 329 (9) Confidentiality of technical data and trade secrets submitted by 330 actual or prospective bidders; 331 (10) Partial, progressive and multiple awards; 332 (11) Supervision of storerooms and inventories, including 333 determination of appropriate stock levels and the management, 334 transfer, sale or other disposal of publicly-owned supplies; 335 (12) Definitions and classes of contractual services and procedures for 336 acquiring such services; 337 (13) Regulations providing for conducting cost and price analysis; 338 (14) Use of payment and performance bonds; 339 (15) Guidelines for use of cost principles in negotiations, adjustments 340 and settlements; and 341 (16) Identification of procurement best practices; 342 (c) Adopt regulations, pursuant to chapter 54, to carry out the 343 provisions of statutes concerning procurement, in order to facilitate 344 consistent application of the law and require the implementation of 345 procurement best practices; 346 (d) Make recommendations with regard to information systems for 347 state procurement including, but not limited to, data element and design 348 Raised Bill No. 473 LCO No. 3459 13 of 60 and the State Contracting Portal; 349 (e) Develop a guide to state statutes and regulations concerning 350 procurement, for use by all [state] contracting agencies; 351 (f) Assist [state] contracting agencies in complying with the statutes 352 and regulations concerning procurement by providing guidance, 353 models, advice and practical assistance to [state] contracting agency 354 staff relating to: (1) Buying the best service at the best price, (2) properly 355 selecting contractors, and (3) drafting contracts that achieve state and 356 local goals of accountability, transparency and results based outcomes 357 and to protect taxpayers' interest; 358 (g) Train and oversee the agency procurement officer of each [state] 359 contracting agency and any contracting officers thereunder; 360 (h) Review and certify, on or after January 1, 2009, that a [state] 361 contracting agency's procurement processes are in compliance with 362 statutes and regulations concerning procurement by: 363 (1) Establishing procurement and project management education and 364 training criteria and certification procedures for agency procurement 365 officers and contracting officers. All agency procurement officers and 366 contracting officers designated under this provision shall be required to 367 maintain the certification in good standing at all times while performing 368 procurement functions; 369 (2) Approving an ethics training course, in consultation with the 370 Office of State Ethics, including, but not limited to, state, quasi-public 371 agency and municipal employees involved in procurement and for state 372 contractors and substantial subcontractors who are prequalified 373 pursuant to chapter 58a. Such ethics training course may be developed 374 and provided by the Office of State Ethics or by any person, firm or 375 corporation provided such course is approved by the State Contracting 376 Standards Board; 377 (i) Recertify each [state] contracting agency's procurement processes, 378 Raised Bill No. 473 LCO No. 3459 14 of 60 triennially, and provide agencies with notice of any certification 379 deficiency and exercise those powers authorized by section 4e-34, as 380 amended by this act, 4e-39, as amended by this act, or 4e-40, as amended 381 by this act, as applicable, if a determination of noncompliance is made; 382 (j) Define the contract data reporting requirements to the board for 383 state agencies concerning information on: (1) The number and type of 384 state contracts of each state contracting agency currently in effect state-385 wide; (2) the term and dollar value of such contracts; (3) a list of client 386 agencies; (4) a description of services purchased under such contracts; 387 (5) contractor names; (6) an evaluation of contractor performance, 388 including, but not limited to records pertaining to the suspension or 389 disqualification of contractors, and assuring such information is 390 available on the State Contracting Portal; and (7) a list of contracts and 391 contractors awarded without full and open competition stating the 392 reasons for and identifying the approving authority; and 393 (k) Provide the Governor and the joint standing committee of the 394 General Assembly having cognizance of matters relating to government 395 administration with recommendations concerning the statutes and 396 regulations concerning procurement. 397 Sec. 7. Subsections (a) to (c), inclusive, of section 4e-5 of the general 398 statutes are repealed and the following is substituted in lieu thereof 399 (Effective July 1, 2022): 400 (a) (1) The head of each [state] contracting agency shall appoint an 401 agency procurement officer. Such officer shall serve as the liaison 402 between the agency and the Chief Procurement Officer on all matters 403 relating to the agency's procurement activity, including, but not limited 404 to, implementation and compliance with the provisions of statutes and 405 regulations concerning procurement and any policies or regulations 406 adopted by the board, coordination of the training and education of 407 agency procurement employees and any person serving on the 408 Contracting Standards Advisory Council; 409 (2) The agency procurement officer shall be responsible for ensuring 410 Raised Bill No. 473 LCO No. 3459 15 of 60 that any invitation to bid, request for proposals or any other solicitation 411 for goods and service contains a notice of the rights of prospective 412 bidders, proposers or prospective contractors under sections 4e-36, 4e-413 39, as amended by this act, and 4e-40, as amended by this act, assuring 414 that contractors are properly screened prior to the award of a contract, 415 ensuring contractors are advised of their rights under sections 4e-36, 4e-416 39, as amended by this act, and 4e-40, as amended by this act, prior to 417 entering into a contract, ensuring that upon the award of a contract that 418 unsuccessful bidders, proposers or respondents are advised of their 419 rights under sections 4e-36, 4e-39, as amended by this act, and 4e-40, as 420 amended by this act, evaluating contractor performance during and at 421 the conclusion of a contract, submitting written evaluations to a central 422 data repository to be designated by the board and creating a project 423 management plan for the agency with annual reports to the board 424 pertaining to procurement projects within the agency. 425 (b) The State Contracting Standards Board, with the advice and 426 assistance of the Commissioner of Administrative Services, shall 427 develop a standardized state and municipal procurement and project 428 management education and training program. Such education and 429 training program shall develop education, training and professional 430 development opportunities for employees of [state] contracting 431 agencies of the state and municipalities charged with procurement 432 responsibilities. The program shall educate such employees in general 433 business acumen and on proper purchasing procedures as established 434 in statutes and regulations concerning procurement with an emphasis 435 on ethics, fairness, consistency and project management. Participation 436 in the program shall be required of any supervisory and nonsupervisory 437 [state] employees in [state] contracting agencies with responsibility for 438 buying, purchasing, renting, leasing or otherwise acquiring any 439 supplies, service or construction, including the preparation of the 440 description of requirements, selection and solicitation of sources, 441 preparation and award of contracts and all phases of contract 442 administration. 443 (c) The program shall include, but shall not be limited to (1) training 444 Raised Bill No. 473 LCO No. 3459 16 of 60 and education concerning federal, state and municipal procurement 445 processes, including the statutes and regulations concerning 446 procurement; (2) training and education courses developed in 447 cooperation with the Office of State Ethics, the Freedom of Information 448 Commission, the State Elections Enforcement Commission, the 449 Commission on Human Rights and Opportunities, the office of the 450 Attorney General and any other state agency the board determines is 451 necessary in carrying out statutes and regulations concerning 452 procurement; (3) providing technical assistance to [state] contracting 453 agencies [and municipalities] for implementing statutes and regulations 454 concerning procurement, regulations, policies and standards developed 455 by the board; (4) training to current and prospective contractors and 456 vendors and others seeking to do business with [the state] a contracting 457 agency; and (5) training and education of [state] contracting agency 458 employees in the area of best procurement practices in [state] 459 purchasing with the goal of achieving the level of acumen necessary to 460 achieve the objectives of statutes and regulations concerning 461 procurement. 462 Sec. 8. Section 4e-6 of the general statutes is repealed and the 463 following is substituted in lieu thereof (Effective July 1, 2022): 464 (a) The board shall conduct audits of [state] contracting agencies, 465 triennially, to ensure compliance with statutes and regulations 466 concerning procurement. In conducting each such audit, the board shall 467 have access to all contracting and procurement records, may interview 468 any and all personnel responsible for contracting, contract negotiations 469 or procurement and may enter into an agreement with the Auditors of 470 Public Accounts to effectuate such audit. 471 (b) Upon completion of any such audit, the board shall prepare and 472 issue a compliance report for the [state] contracting agency. Such report 473 shall identify any process or procedure that is inconsistent with statutes 474 and regulations concerning procurement and indicate those corrective 475 measures the board deems necessary to comply with statutes and 476 regulations concerning procurement requirements. Such report shall be 477 Raised Bill No. 473 LCO No. 3459 17 of 60 issued and delivered to the [state] contracting agency not later than 478 thirty days after completion of such audit and shall be a public record. 479 The [state] contracting agency may provide a written response to the 480 board concerning such report not later than sixty days after receipt of 481 such report and any such response shall be a public record. After 482 receiving such response or after such sixty-day period has elapsed with 483 no response, whichever is earlier, the board may submit such report and 484 the response, if applicable, in accordance with the provisions of section 485 11-4a, to the joint standing committees of the General Assembly having 486 cognizance of matters relating to the [state] contracting agency that is 487 the subject of such report, appropriations and the budgets of state 488 agencies and government administration. 489 Sec. 9. Section 4e-7 of the general statutes is repealed and the 490 following is substituted in lieu thereof (Effective July 1, 2022): 491 (a) For cause, the State Contracting Standards Board may review, 492 terminate or recommend to a [state] contracting agency the termination 493 of any contract or procurement agreement undertaken by any [state] 494 contracting agency after providing fifteen days' notice to the [state] 495 contracting agency and the applicable contractor, and consulting with 496 the Attorney General. Such termination of a contract or procurement 497 agreement by the board may occur only after (1) the board has consulted 498 with the contracting agency to determine the impact of an immediate 499 termination of the contract, (2) a determination has been made jointly 500 by the board and the contracting agency that an immediate termination 501 of the contract will not create imminent peril to the public health, safety 502 or welfare, (3) a vote of two-thirds of the members of the board present 503 and voting for that purpose, and (4) the board has provided the [state] 504 contracting agency and the contractor with opportunity for a hearing 505 conducted pursuant to the provisions of chapter 54. Such action shall be 506 accompanied by notice to the [state] contracting agency and any other 507 affected party. For the purpose of this section, "for cause" means: (A) A 508 violation of section 1-84 or 1-86e, as determined by the Citizen's Ethics 509 Advisory Board; (B) wanton or reckless disregard of any state, quasi-510 public or municipal contracting and procurement process by any person 511 Raised Bill No. 473 LCO No. 3459 18 of 60 substantially involved in such contract or [state] contracting agency; or 512 (C) notification from the Attorney General to the state contracting 513 agency that an investigation pursuant to section 4-61dd has concluded 514 that the process by which such contract was awarded was compromised 515 by fraud, collusion or any other criminal violation. Nothing in this 516 section shall be construed to limit the authority of the board as described 517 in section 4e-6, as amended by this act. 518 (b) Following consultation with the [state] contracting agency and 519 upon providing fifteen days' notice and the opportunity for a hearing, 520 the State Contracting Standards Board may restrict or terminate the 521 authority of any [state] contracting agency to enter into any contract or 522 procurement agreement if: (1) The board, upon a vote of two-thirds of 523 the members of the board present and voting for such purpose, 524 determines that such [state] contracting agency failed to comply with 525 statutory contracting and procurement requirements and evidenced a 526 reckless disregard for applicable procedures and policy; and (2) such 527 limitation, restriction or termination of authority is in the state's best 528 interest, provided the board has made arrangements for the exercise of 529 the contracting power of such agency during the period of limitation, 530 restriction or termination. Such limitation, restriction or termination of 531 authority shall remain in effect until such time as the board determines 532 that such [state] contracting agency has implemented corrective 533 measures and demonstrated compliance with statutes and regulations 534 concerning procurement. 535 (c) Following consultation with the [state] contracting agency, and 536 thereafter upon providing fifteen days' notice and the opportunity for a 537 hearing, the State Contracting Standards Board may order a [state] 538 contracting agency to take appropriate action to restrict or terminate the 539 authority of an employee or agent to enter into any contract or 540 procurement agreement if the board, upon a vote of two-thirds of the 541 members of the board present and voting for such purpose, determines 542 that such employee or agent failed to comply with statutory contracting 543 and procurement requirements, and evidenced a reckless disregard for 544 applicable procedures and policy. Such limitation, restriction or 545 Raised Bill No. 473 LCO No. 3459 19 of 60 termination of authority shall remain in effect until such time as the 546 board determines that such [state] contracting agency has implemented 547 corrective measures and demonstrated compliance with statutes and 548 regulations concerning procurement. 549 Sec. 10. Section 4e-8 of the general statutes is repealed and the 550 following is substituted in lieu thereof (Effective July 1, 2022): 551 There is established a Contracting Standards Advisory Council, 552 which shall consist of representatives from the Office of Policy and 553 Management, Departments of Administrative Services and 554 Transportation, [and] representatives of at least three additional 555 contracting agencies, including at least one human services related state 556 agency, to be designated by the Governor, at least three additional 557 contracting agencies that are quasi-public agencies appointed by the 558 speaker of the House of Representatives and at least three additional 559 contracting agencies that are municipalities, appointed by the Senate 560 president pro tempore. The Chief Procurement Officer shall be a 561 member of the council and serve as chairperson. The advisory council 562 shall meet at least four times per year to discuss [state] procurement 563 issues and to make recommendations for improvement of the 564 procurement processes to the State Contracting Standards Board. The 565 advisory council may conduct studies, research and analyses and make 566 reports and recommendations with respect to subjects or matters within 567 the jurisdiction of the State Contracting Standards Board. 568 Sec. 11. Section 4e-10 of the general statutes is repealed and the 569 following is substituted in lieu thereof (Effective July 1, 2022): 570 (a) On or before July 1, 2010, the board shall submit to the Governor 571 and the General Assembly such legislation as is necessary to permit 572 [state] contracting agencies, not including [quasi-publics] quasi-public 573 agencies, institutions of higher education, and municipal procurement 574 processes utilizing state funds, to carry out their functions under 575 statutes and regulations concerning procurement. 576 (b) On or before July 1, 2011, the board shall submit to the Governor 577 Raised Bill No. 473 LCO No. 3459 20 of 60 and the General Assembly such legislation as is necessary to apply the 578 provisions of statutes concerning procurement to constituent units of 579 the state system of higher education. Concomitantly, the board shall 580 submit such additional legislation as is necessary to apply the 581 provisions of statutes and regulations concerning privatization and 582 procurement to quasi-public agencies. 583 (c) On or before July 1, 2012, the board shall submit to the Governor 584 and the General Assembly such legislation as is necessary to apply the 585 provisions of statutes and regulations concerning procurement to the 586 municipal procurement processes utilizing state funds. 587 Sec. 12. Section 4e-14 of the general statutes is repealed and the 588 following is substituted in lieu thereof (Effective July 1, 2022): 589 On and after [June 1, 2010] July 1, 2022, all [state] contracts of each 590 [state] contracting agency that take effect on or after [June 1, 2010] July 591 1, 2022, shall contain provisions to ensure accountability, transparency 592 and results based outcomes, as prescribed by the State Contracting 593 Standards Board. On and after June 1, 2010, all state contracts of the 594 legislative branch and the judicial branch that take effect on or after June 595 1, 2010, shall contain provisions to ensure accountability, transparency 596 and results based outcomes. 597 Sec. 13. Section 4e-16 of the general statutes is repealed and the 598 following is substituted in lieu thereof (Effective July 1, 2022): 599 (a) Prior to entering into any privatization contract for the 600 privatization of a state service that is not currently privatized, the [state] 601 contracting agency of the state shall develop a cost-benefit analysis in 602 accordance with the provisions of subsection (b) of this section. Such 603 requirement shall not apply to a privatization contract for a service 604 currently provided, in whole or in part, by a non-state entity. Any 605 affected party may petition the State Contracting Standards Board for 606 review of such privatization contract, in accordance with the provisions 607 of subsections (f) to (h), inclusive, of this section. 608 Raised Bill No. 473 LCO No. 3459 21 of 60 (b) The cost-benefit analysis conducted by a [state] contracting 609 agency of the state prior to entering into a privatization contract shall 610 document the direct and indirect costs, savings, and qualitative and 611 quantitative benefits, that will result from the implementation of such 612 privatization contract. Such cost-benefit analysis shall specify the 613 schedule that, at a minimum, shall be adhered to in order to achieve any 614 estimated savings. Any cost factor shall be clearly identified in such 615 cost-benefit analysis and supported by all applicable records and 616 reports. The department head of such [state] contracting agency of the 617 state shall certify that, based on the data and information, all projected 618 costs, savings and benefits are valid and achievable. As used in this 619 subsection, (1) "costs" means all reasonable, relevant and verifiable 620 expenses, including salary, materials, supplies, services, equipment, 621 capital depreciation, rent, maintenance, repairs, utilities, insurance, 622 travel, overhead, interim and final payments and the normal cost of 623 fringe benefits, as calculated by the Comptroller; (2) "normal cost of 624 fringe benefits" means the amount of contributions required to fund the 625 fringe benefits allocated to the current year of service; and (3) "savings" 626 means the difference between the current annual direct and indirect 627 costs of providing such service and the projected, annual direct and 628 indirect costs of contracting to provide such services in any succeeding 629 state fiscal year during the term of such proposed privatization contract. 630 (c) (1) If such cost-benefit analysis identifies a cost savings to the state 631 of ten per cent or more, and such privatization contract will not diminish 632 the quality of such service, the [state] contracting agency of the state 633 shall develop a business case, in accordance with the provisions of 634 subsection (d) of this section, in order to evaluate the feasibility of 635 entering into any such contract and to identify the potential results, 636 effectiveness and efficiency of such contract. 637 (2) If such cost-benefit analysis identifies a cost savings of less than 638 ten per cent to the state and such privatization contract will not diminish 639 the quality of such service, the [state] contracting agency of the state 640 may develop a business case, in accordance with the provisions of 641 subsection (d) of this section, in order to evaluate the feasibility of 642 Raised Bill No. 473 LCO No. 3459 22 of 60 entering into any such contract and to identify the potential results, 643 effectiveness and efficiency of such contract, provided there is a 644 significant public policy reason to enter into such privatization contract. 645 Any such business case shall be approved in accordance with the 646 provisions of subdivision (4) of subsection (h) of this section. 647 (3) If any such proposed privatization contract would result in the 648 layoff, transfer or reassignment of one hundred or more state agency 649 employees, after consulting with the potentially affected bargaining 650 units, if any, the [state] contracting agency of the state shall notify the 651 state employees of such bargaining unit, after such cost-benefit analysis 652 is completed. Such [state] contracting agency of the state shall provide 653 an opportunity for [said] such employees to reduce the costs of 654 conducting the operations to be privatized and provide reasonable 655 resources for the purpose of encouraging and assisting such state 656 employees to organize and submit a bid to provide the services that are 657 the subject of the potential privatization contract. The [state] contracting 658 agency of the state shall retain sole discretion in determining whether to 659 proceed with the privatization contract, provided the business case for 660 such contract is approved by the board. 661 (d) Any business case developed by a [state] contracting agency of 662 the state for the purpose of complying with subsection (c) of this section 663 shall include: (1) The cost-benefit analysis as described in subsection (b) 664 of this section, (2) a detailed description of the service or activity that is 665 the subject of such business case, (3) a description and analysis of [the 666 state] such contracting agency's current performance of such service or 667 activity, (4) the goals to be achieved through the proposed privatization 668 contract and the rationale for such goals, (5) a description of available 669 options for achieving such goals, (6) an analysis of the advantages and 670 disadvantages of each option, including, at a minimum, potential 671 performance improvements and risks attendant to termination of the 672 contract or rescission of such contract, (7) a description of the current 673 market for the services or activities that are the subject of such business 674 case, (8) an analysis of the quality of services as gauged by standardized 675 measures and key performance requirements including compensation, 676 Raised Bill No. 473 LCO No. 3459 23 of 60 turnover, and staffing ratios, (9) a description of the specific results-677 based performance standards that shall, at a minimum be met, to ensure 678 adequate performance by any party performing such service or activity, 679 (10) the projected time frame for key events from the beginning of the 680 procurement process through the expiration of a contract, if applicable, 681 (11) a specific and feasible contingency plan that addresses contractor 682 nonperformance and a description of the tasks involved in and costs 683 required for implementation of such plan, and (12) a transition plan, if 684 appropriate, for addressing changes in the number of agency personnel, 685 affected business processes, employee transition issues, and 686 communications with affected stakeholders, such as agency clients and 687 members of the public, if applicable. Such transition plan shall contain 688 a reemployment and retraining assistance plan for employees who are 689 not retained by the state or employed by the contractor. If the primary 690 purpose of the proposed privatization contract is to provide a core 691 governmental function, such business case shall also include 692 information sufficient to rebut the presumption that such core 693 governmental function should not be privatized. Such presumption 694 shall not be construed to prohibit a [state] contracting agency of the state 695 from contracting for specialized technical expertise not available within 696 such agency, provided such agency shall retain responsibility for such 697 core governmental function. For the purposes of this section, "core 698 governmental function" means a function for which the primary 699 purpose is (A) the inspection for adherence to health and safety 700 standards because public health or safety may be jeopardized if such 701 inspection is not done or is not done in a timely or proper manner, (B) 702 the establishment of statutory, regulatory or contractual standards to 703 which a regulated person, entity or state contractor shall be held, (C) the 704 enforcement of statutory, regulatory or contractual requirements 705 governing public health or safety, or (D) criminal or civil law 706 enforcement. If any part of such business case is based upon evidence 707 that the [state] contracting agency of the state is not sufficiently staffed 708 to provide the core governmental function required by the privatization 709 contract, the [state] contracting agency of the state shall also include 710 within such business case a plan for remediation of the understaffing to 711 Raised Bill No. 473 LCO No. 3459 24 of 60 allow such services to be provided directly by the [state] contracting 712 agency in the future. 713 (e) Upon the completion of such business case, the [state] contracting 714 agency of the state shall submit the business case to the State 715 Contracting Standards Board. For any privatization contract with a 716 projected cost that exceeds one hundred fifty million dollars annually or 717 six hundred million dollars over the life of such contract, the [state] 718 contracting agency of the state shall also submit such business case to 719 the Governor, the president pro tempore of the Senate, the speaker of 720 the House of Representatives, and any collective bargaining unit 721 affected by the proposed privatization contract. 722 (f) (1) There shall be a privatization contract committee of the State 723 Contracting Standards Board that shall review, evaluate, issue advisory 724 reports and make recommendations on business cases submitted to the 725 board by any [state] contracting agency of the state. Such privatization 726 contract committee shall consist of five members of the State 727 Contracting Standards Board. Such members shall be appointed by the 728 chairperson of the board and consist of both gubernatorial and 729 legislative appointments, have not more than three members from any 730 one political party, and at least one member of such committee shall 731 have expertise in the area that is the subject of such proposed contract. 732 The chairperson of the board, or the chairperson's designee shall serve 733 as the chair of the privatization contract committee. 734 (2) Upon receipt of any such business case from a [state] contracting 735 agency of the state, the State Contracting Standards Board shall 736 immediately refer such business case to such privatization contract 737 committee. The privatization contract committee shall employ a 738 standard process for reviewing, evaluating and approving any such 739 business cases. Such process shall include due consideration of: (A) The 740 cost-benefit analysis developed by the [state] contracting agency of the 741 state, (B) the business case developed by the [state] contracting agency 742 of the state, including any facts, documents or other materials that are 743 relevant to such business case, (C) any adverse effect that such 744 Raised Bill No. 473 LCO No. 3459 25 of 60 privatization contract may have on minority, small and women-owned 745 businesses that do, or are attempting to do business with the state, and 746 (D) the value of having services performed in the state and within the 747 United States. 748 (3) The privatization committee shall evaluate the business case and 749 submit the committee's evaluation to the State Contracting Standards 750 Board for review and approval. During the review or consideration of 751 any such business case, no member of the board shall engage in any ex-752 parte communication with any lobbyist, contractor or union 753 representative. Unless otherwise provided in this section, a majority 754 vote of the board shall be required to approve any such business case. 755 (4) The business case for a privatization contract to provide a core 756 governmental function may be approved by a two-thirds vote of the 757 board, provided the [state] contracting agency of the state has provided 758 sufficient evidence to rebut the presumption contained in subsection (d) 759 of this section and there is a significant policy reason to approve such 760 business case. In no such case shall the insufficient staffing of a [state] 761 contracting agency of the state constitute a significant policy reason to 762 approve a business case for a privatization contract to provide a core 763 governmental function. 764 (g) Each [state] contracting agency of the state that submits a business 765 case to the board for review shall submit to the board all information, 766 documents or other material required by the privatization contract 767 committee to complete its review and evaluation of such business case. 768 (h) (1) Not later than sixty days after receipt of any business case, the 769 State Contracting Standards Board shall transmit a report detailing its 770 review, evaluation and disposition regarding such business case to the 771 [state] contracting agency of the state that submitted such business case 772 and, in the case of a privatization contract with a projected cost of one 773 hundred fifty million dollars or more annually, or six hundred million 774 dollars or more over the life of the contract, concomitantly transmit such 775 report to the Governor, the president pro tempore of the Senate, the 776 Raised Bill No. 473 LCO No. 3459 26 of 60 speaker of the House of Representatives and any collective bargaining 777 unit affected by the proposed privatization contract. Such sixty-day 778 period may be extended for an additional thirty days upon a majority 779 vote of the board or the privatization contract committee and for good 780 cause shown. 781 (2) The board's report shall include the business case prepared by the 782 [state] contracting agency of the state, the evaluation of the business case 783 prepared by the privatization contract committee, the reasons for 784 approval or disapproval, any recommendations of the board and 785 sufficient information to assist the [state] contracting agency of the state 786 in determining if additional steps are necessary to move forward with a 787 privatization contract. 788 (3) If the State Contracting Standards Board does not act on a business 789 case submitted by a [state] contracting agency of the state within sixty 790 days of receipt of such business case, such business case shall be deemed 791 approved, except that no business case may be approved for failure of 792 the board to meet. 793 (4) In the case of a business case developed pursuant to subdivision 794 (2) of subsection (c) of this section, a two-thirds vote of the board shall 795 be required for approval of such privatization contract. 796 (5) Any [state] contracting agency of the state may request an 797 expedited review of a business case submitted to the board if there is a 798 compelling public interest for such expedited review. If the board 799 approves the agency's request for such an expedited review, such 800 review shall be completed not later than thirty days after receipt of such 801 request. If the board fails to complete an expedited review within thirty 802 days of receipt of a request that was approved by the board, such 803 business case shall be deemed to be approved. 804 (i) A [state] contracting agency of the state may publish notice 805 soliciting bids for a privatization contract only after the board approves 806 such business case, provided any privatization contract that is estimated 807 to cost in excess of one hundred fifty million dollars annually or six 808 Raised Bill No. 473 LCO No. 3459 27 of 60 hundred million dollars or more over the life of the contract shall also 809 be approved by the General Assembly prior to the [state] contracting 810 agency soliciting bids for such contract. The General Assembly may 811 approve any such contract as a whole by a majority vote of each house 812 or may reject such agreement as a whole by a majority vote of either 813 house. If the General Assembly is in session, it shall vote to approve or 814 reject such contract not later than thirty days after such [state] 815 contracting agency files such contract with the General Assembly. If the 816 General Assembly is not in session when such contract is filed, it shall 817 be submitted to the General Assembly not later than ten days after the 818 first day of the next regular session or special session called for such 819 purpose. The contract shall be deemed approved if the General 820 Assembly fails to vote to approve or reject such contract within thirty 821 days after such filing. Such thirty-day period shall not begin or expire 822 unless the General Assembly is in regular session. For the purpose of 823 this subsection, any contract filed with the clerks within thirty days 824 before the commencement of a regular session of the General Assembly 825 shall be deemed to be filed on the first day of such session. 826 (j) Each [state] contracting agency of the state shall submit, in writing, 827 to the State Contracting Standards Board, any proposed amendment to 828 a board-approved business case in order that the board may review and 829 approve of such proposed amendment. The board may approve or 830 disapprove of any such proposed amendment not later than thirty days 831 after receipt of such proposed amendment by the same vote that was 832 required for approval of the original business case. If the board fails to 833 complete its review within thirty days of receipt of such proposed 834 amendment, such amendment shall be deemed approved. 835 (k) Not later than thirty days after a decision of the board to approve 836 a business case, any collective bargaining agent of any employee 837 adversely affected by such proposed privatization contract may file a 838 motion for an order to show cause in the superior court for the judicial 839 district of Hartford on the grounds that such contract fails to comply 840 with the substantive or procedural requirements of this section. A ruling 841 on any such motion may: (1) Deny the motion; (2) grant the motion if 842 Raised Bill No. 473 LCO No. 3459 28 of 60 the court finds that the proposed contract would substantively violate 843 the provisions of this section; or (3) stay the effective date of the contract 844 until any substantive or procedural defect found by the court has been 845 corrected. 846 (l) (1) The board may review additional existing privatization 847 contracts and shall review not less than one contracting area each year 848 that is currently privatized. During the review of any such privatization 849 contract, no member of the board shall engage in any ex-parte 850 communication with any lobbyist, contractor or union representative. 851 For each such privatization contract selected for review by the board, 852 the appropriate [state] contracting agency shall develop a cost-benefit 853 analysis in accordance with subsection (b) of this section. In addition, 854 any affected party may petition the board for review of any existing 855 privatization contract, in accordance with the provisions of subsections 856 (f) to (h), inclusive, of this section. 857 (2) If such cost-benefit analysis identifies a ten per cent or more cost 858 savings to the state from the use of such privatization contract and such 859 contract does not diminish the quality of the service provided, such 860 [state] contracting agency shall develop a business case for the renewal 861 of such privatization contract in accordance with the provisions of 862 subsections (d) and (e) of this section. The board shall review such 863 contract in accordance with the provisions of subsections (f) to (h), 864 inclusive, of this section and may approve such renewal by the 865 applicable vote of the board, provided any such renewal that is 866 estimated to cost in excess of one hundred fifty million dollars annually 867 or six hundred million dollars or more over the life of the contract shall 868 also be approved by the General Assembly prior to the [state] 869 contracting agency renewing such contract. If such renewal is approved 870 by the board and the General Assembly, if applicable, the provisions of 871 subsection (j) of this section shall apply to any proposed amendment to 872 such contract. 873 (3) If such cost-benefit analysis identifies a cost savings to the state of 874 less than ten per cent, such [state] contracting agency shall prepare a 875 Raised Bill No. 473 LCO No. 3459 29 of 60 plan to have such service provided by state employees and shall begin 876 to implement such plan, provided: (A) While such plan is prepared, but 877 prior to implementation of such plan, such [state] contracting agency 878 may develop a business case for such privatization contract, in 879 accordance with the provisions of subsection (d) of this section, that 880 achieves a cost savings to the state of ten per cent or more. Any such 881 business case shall be reviewed by the board in accordance with the 882 provisions of subsections (f) to (h), inclusive, of this section, and may be 883 approved by the applicable vote of the board; (B) such privatization 884 contract shall not be renewed with the vendor currently providing such 885 service unless: (i) There exists a significant public interest in renewing 886 such contract, and (ii) such renewal is approved by a two-thirds vote of 887 the board; (C) the [state] contracting agency of the state may enter into 888 a contract with a term of one year or less for the provision of such service 889 until such [state] contracting agency implements such plan; and (D) the 890 procedure for the transfer of funds from the General Fund, as described 891 in section 4-94, may be utilized to allocate necessary resources for the 892 implementation of the provisions of this subdivision. 893 (4) Notwithstanding the provisions of subdivision (3) of this 894 subsection, the renewal of a privatization contract with a nonprofit 895 organization shall not be denied if the cost of increasing compensation 896 to employees performing the privatized service is the sole cause for such 897 contract not achieving a cost savings to the state of ten per cent or more. 898 (m) The Office of Policy and Management, in consultation with the 899 State Contracting Standards Board, shall: (1) Develop policies and 900 procedures, including templates for use by [state] contracting agencies 901 of the state for the development of a cost-benefit analysis, as described 902 in subsection (b) of this section, and (2) review with each [state] 903 contracting agency of the state the budgetary impact of any such 904 privatization contract and the need to request budget adjustments in 905 connection with any such privatization contract. 906 (n) The State Contracting Standards Board, in consultation with the 907 Department of Administrative Services, shall: (1) Recommend and 908 Raised Bill No. 473 LCO No. 3459 30 of 60 implement standards and procedures for [state] contracting agencies of 909 the state to develop business cases in connection with privatization 910 contracts, including templates for use by [state] such contracting 911 agencies when submitting business cases to the board, and policies and 912 procedures to guide [state] such contracting agencies to complete such 913 business cases, and (2) develop guidelines and procedures for assisting 914 state employees whose jobs are affected by a privatization contract. 915 (o) Notwithstanding the provisions of subsections (a) and (i) of this 916 section, a [state] contracting agency of the state may enter into a 917 privatization contract without development of a cost-benefit analysis or 918 approval of a business case by the State Contracting Standards Board if 919 (1) the [state] contracting agency finds that a privatization contract is 920 required (A) due to an imminent peril to the public health, safety or 921 welfare, and (B) the agency states, in writing, its reasons for such 922 finding; and (2) the Governor approves such finding, in writing. 923 (p) Prior to entering into or renewing any privatization contract that 924 is not subject to the provisions of subsection (a) of this section, the [state] 925 contracting agency of the state shall evaluate such contract to determine 926 if entering into or renewing such contract is the most cost-effective 927 method of delivering the service, by determining the costs, as defined in 928 subsection (b) of this section, of such service. The [state] contracting 929 agency shall perform such evaluation in accordance with a template 930 prescribed by the Secretary of the Office of Policy and Management and 931 such evaluation shall be subject to verification by the secretary. The 932 secretary may waive the requirement for an evaluation of cost-933 effectiveness under this subsection upon a finding by the secretary that 934 exigent or emergent circumstances necessitate such waiver. 935 (q) Nothing in this section shall be construed to apply to 936 procurements that involve the expenditure of federal assistance or 937 federal contract funds, provided federal law provides applicable 938 procurement procedures that are inconsistent with the requirements of 939 this section. 940 Raised Bill No. 473 LCO No. 3459 31 of 60 Sec. 14. Section 4e-17 of the general statutes is repealed and the 941 following is substituted in lieu thereof (Effective July 1, 2022): 942 (a) Except as otherwise provided, the provisions of sections [4e-16] 943 4e-18 to 4e-47, inclusive, as amended by this act, shall apply to all 944 contracts solicited or entered into by [state] contracting agencies after 945 June 1, 2010 and the provisions of section 4e-16, as amended by this act, 946 shall apply to all contracts solicited or entered into by a contracting 947 agency of the state after June 1, 2010. 948 (b) Except as otherwise provided, the provisions of sections 4e-16 to 949 4e-47, inclusive, as amended by this act, shall apply to every 950 expenditure of public funds by any [state] contracting agency, 951 irrespective of their source, involving any state, quasi-public or 952 municipal contracting and procurement processes, including, but not 953 limited to, leasing and property transfers, purchasing or leasing of 954 supplies, materials or equipment, consultant or consultant services, 955 personal service agreements, purchase of service agreements or 956 privatization contracts, as defined in section 4e-1, as amended by this 957 act, and, relating to contracts for the construction, reconstruction, 958 alteration, remodeling, repair or demolition of any public building, 959 bridge or road, provided the provisions of section 4e-16, as amended by 960 this act, or involving privatization contracts shall only apply to 961 contracting agencies of the state. 962 (c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this 963 act, shall be construed to require the application of procurement statutes 964 or regulations to a procurement that involves the expenditure of federal 965 assistance or federal contract funds if federal law provides procurement 966 procedures applicable to the expenditure of such funds, to the extent 967 such federal procedures are inconsistent with state procurement 968 statutes or regulations. 969 Sec. 15. Section 4e-18 of the general statutes is repealed and the 970 following is substituted in lieu thereof (Effective July 1, 2022): 971 For the purpose of obtaining supplies, materials, equipment or 972 Raised Bill No. 473 LCO No. 3459 32 of 60 contractual services, except infrastructure facilities, the Commissioner 973 of Administrative Services shall establish a requisition system to be used 974 by [state] contracting agencies of the state to initiate and authorize the 975 procurement process. Such system shall be approved by the State 976 Contracting Standards Board. 977 Sec. 16. Section 4e-19 of the general statutes is repealed and the 978 following is substituted in lieu thereof (Effective July 1, 2022): 979 (a) All purchases of, and contracts for, supplies, materials, equipment 980 and contractual services by any [state] contracting agency, except 981 purchases and contracts made pursuant to the provisions of section 4e-982 23, shall be awarded by one of the following methods, unless otherwise 983 authorized by law: 984 (1) Competitive sealed bidding; 985 (2) Competitive sealed proposals; 986 (3) Small purchase procedure; 987 (4) Sole source procurement; 988 (5) Emergency procurements; or 989 (6) Waiver of bid or proposal requirement for extraordinary 990 conditions. 991 (b) Not later than June 1, 2010, the State Contracting Standards Board 992 shall adopt regulations, in accordance with the provisions of chapter 54, 993 to define each of the methods listed in subsection (a) of this section, 994 establish the circumstances in which each such method shall be used by 995 [state] contracting agencies, and establish the processes and criteria by 996 which purchases and contracts shall be awarded in accordance with 997 each such method. 998 Sec. 17. Section 4e-21 of the general statutes is repealed and the 999 following is substituted in lieu thereof (Effective July 1, 2022): 1000 Raised Bill No. 473 LCO No. 3459 33 of 60 (a) Not later than January 1, 2010, the State Contracting Standards 1001 Board, in consultation with the Department of Administrative Services, 1002 shall adopt regulations to establish small purchase procedures for 1003 procurements that do not exceed fifty thousand dollars. Such 1004 regulations shall include a prohibition on the artificial division of a 1005 procurement in order to make use of such small procurement 1006 procedures. 1007 (b) The State Contracting Standards Board, in consultation with the 1008 Commissioner of Administrative Services, may determine that a [state] 1009 contracting agency has artificially divided procurement requirements so 1010 as to constitute a small purchase under this section and, upon such 1011 determination shall prohibit the [state] contracting agency from 1012 utilizing such small purchase procedures. 1013 (c) The State Contracting Standards Board, in consultation with the 1014 Commissioner of Administrative Services, may waive the requirement 1015 of competitive bidding or competitive negotiation in the case of minor, 1016 nonrecurring or emergency purchases of ten thousand dollars or less in 1017 amount, upon application of the contracting agency. Any contracting 1018 agency that obtains such a waiver for such an emergency purchase shall 1019 post notice of such emergency purchase on the Internet web site of the 1020 contracting agency prior to making such emergency purchase. 1021 Sec. 18. Section 4e-24 of the general statutes is repealed and the 1022 following is substituted in lieu thereof (Effective July 1, 2022): 1023 [Not later than June 1, 2010, the State Contracting Standards Board, 1024 in consultation with the Commissioner of Administrative Services and 1025 any other appropriate award authority, shall adopt regulations, in 1026 accordance with the provisions of chapter 54, permitting] (a) If an 1027 emergency [procurements when there exists] procurement is deemed 1028 necessary by a contracting agency due to a threat to public health, 1029 welfare or safety, the contracting agency shall give notice to the board 1030 of the need for such emergency procurement. Such emergency 1031 procurements shall be made with competition, as is practicable under 1032 Raised Bill No. 473 LCO No. 3459 34 of 60 the circumstances. [Said regulations shall require that] The contracting 1033 agency shall (1) include a written determination of the basis for the 1034 emergency and for the selection of the particular contractor [be 1035 included] in the contract file, [and transmitted] (2) transmit such 1036 determination to the Governor, the president pro tempore of the Senate, 1037 the majority and minority leaders of the Senate, the speaker of the House 1038 of Representatives and the majority and minority leaders of the House 1039 of Representatives, and (3) post such determination on the Internet web 1040 site of the contracting agency. 1041 (b) The State Contracting Standards Board may adopt regulations in 1042 accordance with the provisions of chapter 54 to implement the 1043 provisions of this section. 1044 Sec. 19. Subsection (d) of section 4b-51 of the general statutes is 1045 repealed and the following is substituted in lieu thereof (Effective July 1, 1046 2022): 1047 (d) (1) Notwithstanding any provision of the general statutes, the 1048 Commissioner of Administrative Services may select consultants to be 1049 on a list established for the purpose of providing any consultant 1050 services. Such list shall be established as provided in sections 4b-56 and 1051 4b-57, as amended by this act. [The] In the case of an emergency 1052 procurement due to a threat to public health, welfare or safety, the 1053 commissioner may enter into a contract with any consultant on such list 1054 without inviting responses from such consultants to perform a range of 1055 consultant services or to perform a range of tasks pursuant to a task 1056 letter detailing services to be performed under such contract. 1057 (2) Notwithstanding any provision of the general statutes, the 1058 Commissioner of Administrative Services may (A) compile a list of 1059 architects, professional engineers and construction administrators for 1060 the limited purpose of providing consultant services for a particular 1061 program involving various projects for the construction of new 1062 buildings or renovations to existing buildings where such buildings are 1063 under the operation and control of either the Military Department or the 1064 Raised Bill No. 473 LCO No. 3459 35 of 60 Department of Energy and Environmental Protection, and (B) in the case 1065 of an emergency procurement due to a threat to public health, welfare 1066 or safety, enter into a contract with any architect, professional engineer 1067 or construction administrator on such list for such limited purpose 1068 without inviting responses from the persons on such list, except that the 1069 Adjutant General may perform the functions described in 1070 subparagraphs (A) and (B) of this subdivision for any such building 1071 under the operation and control of the Military Department. 1072 (3) As used in this subsection, "consultant" means "consultant" as 1073 defined in section 4b-55, "consultant services" means "consultant 1074 services" as defined in section 4b-55, and "program" means multiple 1075 projects involving the planning, design, construction, repair, 1076 improvement or expansion of specified buildings, facilities or site 1077 improvements, wherein the work (A) will be of a repetitive nature, (B) 1078 will share a common funding source that imposes particular 1079 requirements, or (C) would be significantly facilitated if completed by 1080 the same design professional or construction administrator. 1081 Sec. 20. Subsection (a) of section 4b-57 of the general statutes is 1082 repealed and the following is substituted in lieu thereof (Effective July 1, 1083 2022): 1084 (a) Whenever consultant services are required by the commissioner 1085 in fulfilling the responsibilities under section 4b-1, and in the case of 1086 each project, the commissioner shall invite responses from such firms by 1087 posting notice on the State Contracting Portal, except that in the case of 1088 an emergency procurement, the commissioner may receive consultant 1089 services under a contract entered into pursuant to subsection (d) of 1090 section 4b-51, as amended by this act. The commissioner shall prescribe, 1091 by regulations adopted in accordance with chapter 54, the advance 1092 notice required for, the manner of submission, and conditions and 1093 requirements of, such responses. 1094 Sec. 21. Subsection (g) of section 4b-91 of the 2022 supplement to the 1095 general statutes is repealed and the following is substituted in lieu 1096 Raised Bill No. 473 LCO No. 3459 36 of 60 thereof (Effective July 1, 2022): 1097 (g) Notwithstanding the provisions of this chapter regarding 1098 competitive bidding procedures, in the case of an emergency 1099 procurement due to a threat to public health, welfare or safety, the 1100 commissioner may select and interview at least three responsible and 1101 qualified general contractors who are prequalified pursuant to section 1102 4a-100 and submit the three selected contractors to the construction 1103 services award panels process described in section 4b-100a and any 1104 regulation adopted by the commissioner. The commissioner may 1105 negotiate with the successful bidder a contract which is both fair and 1106 reasonable to the state for a community court project, the downtown 1107 Hartford higher education center project, a correctional facility project, 1108 a juvenile residential center project, or a student residential facility for 1109 the Connecticut State University System that is a priority higher 1110 education facility project. The Commissioner of Administrative 1111 Services, prior to entering any such contract or performing any work on 1112 such project, shall submit such contract to the State Properties Review 1113 Board for review and approval or disapproval by the board, pursuant 1114 to subsection (i) of this section. Any general contractor awarded a 1115 contract pursuant to this subsection shall be subject to the same 1116 requirements concerning the furnishing of bonds as a contractor 1117 awarded a contract pursuant to subsection (b) of this section. 1118 Sec. 22. Section 4e-25 of the general statutes is repealed and the 1119 following is substituted in lieu thereof (Effective July 1, 2022): 1120 A [state] contracting agency may request factual information 1121 reasonably available to the bidder or proposer to substantiate that the 1122 price or cost offered, or some portion of it, is reasonable. 1123 Sec. 23. Section 4e-27 of the general statutes is repealed and the 1124 following is substituted in lieu thereof (Effective July 1, 2022): 1125 Not later than June 1, 2010, the State Contracting Standards Board, in 1126 consultation with the Attorney General, shall adopt regulations, in 1127 accordance with the provisions of chapter 54, specifying the types of 1128 Raised Bill No. 473 LCO No. 3459 37 of 60 contracts that may be used by [state] contracting agencies. Such 1129 regulations shall specify that a cost-reimbursement contract may be 1130 used only when a determination is made in writing by the agency 1131 procurement officer that such contract is likely to be less costly to the 1132 state, quasi-public agency or municipality than any other type or that it 1133 is impracticable to obtain the supplies, services or construction required 1134 except under such a contract. 1135 Sec. 24. Section 4e-28 of the general statutes is repealed and the 1136 following is substituted in lieu thereof (Effective July 1, 2022): 1137 Not later than June 1, 2010, the State Contracting Standards Board 1138 shall adopt regulations, in accordance with the provisions of chapter 54, 1139 requiring that contractors submit appropriate documentation to the 1140 appropriate [state] contracting agency, prior to the award of a contract, 1141 to confirm that the proposed contractor's accounting system will permit 1142 timely development of all necessary cost data in the form required by 1143 the specific contract type. 1144 Sec. 25. Section 4e-29 of the general statutes is repealed and the 1145 following is substituted in lieu thereof (Effective July 1, 2022): 1146 Each contract of a [state] contracting agency shall provide that [a 1147 state] such contracting agency may, at reasonable times, inspect the part 1148 of the plant or place of business of a contractor or any subcontractor 1149 which is related to the performance of any such contract awarded, or to 1150 be awarded by the [state] contracting agency, to ensure compliance with 1151 the contract. 1152 Sec. 26. Section 4e-30 of the 2022 supplement to the general statutes 1153 is repealed and the following is substituted in lieu thereof (Effective July 1154 1, 2022): 1155 (a) A [state] contracting agency may audit the books and records of a 1156 contractor or any subcontractor under any negotiated contract or 1157 subcontract to the extent that such books and records relate to the 1158 performance of such contract or subcontract. Such books and records 1159 Raised Bill No. 473 LCO No. 3459 38 of 60 shall be maintained by the contractor for a period of three years from 1160 the date of final payment under the prime contract and by the 1161 subcontractor for a period of three years from the expiration of the 1162 subcontract. 1163 (b) If a [state] contracting agency enters into an amendment to any 1164 negotiated contract or subcontract that extends the terms of such 1165 contract or subcontract, the amendment shall be deemed a new and 1166 separate negotiated contract for the purposes of this section. The books 1167 and records of a contractor or any subcontractor related to the 1168 performance of such amendment shall be maintained by the contractor 1169 or subcontractor from the commencement of such amendment until a 1170 period of three years from the date of final payment under such 1171 amendment or the date of expiration of such amendment, whichever is 1172 later. 1173 Sec. 27. Section 4e-31 of the general statutes is repealed and the 1174 following is substituted in lieu thereof (Effective July 1, 2022): 1175 When, for any reason, collusion or other anticompetitive practices are 1176 suspected among any bidders or proposers for a [state] contract of a 1177 contracting agency, a notice of the relevant facts shall be transmitted to 1178 the Attorney General by any affected party, including, but not limited 1179 to, the [state] contracting agency, a bidder or a proposer. 1180 Sec. 28. Section 4e-32 of the general statutes is repealed and the 1181 following is substituted in lieu thereof (Effective July 1, 2022): 1182 Each [state] contracting agency shall retain and dispose of all 1183 procurement records in accordance with records retention guidelines 1184 and schedules approved by the Public Records Administrator. 1185 Sec. 29. Section 4e-33 of the general statutes is repealed and the 1186 following is substituted in lieu thereof (Effective July 1, 2022): 1187 The agency procurement officer of each [state] contracting agency 1188 shall maintain a record that lists all contracts awarded pursuant to 1189 Raised Bill No. 473 LCO No. 3459 39 of 60 section 4e-21, as amended by this act, and the regulations adopted under 1190 section 4e-23 for a minimum of five years after the date of any such 1191 award. Such record shall contain: 1192 (1) Each contractor's name; 1193 (2) The amount and type of each contract; and 1194 (3) A listing of the supplies, services or construction procured under 1195 each contract. 1196 Sec. 30. Section 4e-34 of the general statutes is repealed and the 1197 following is substituted in lieu thereof (Effective July 1, 2022): 1198 (a) After reasonable notice and hearing and consultation with the 1199 relevant [state] contracting agency and the Attorney General, the State 1200 Contracting Standards Board, acting through a subcommittee of three 1201 members, appointed by the chairperson, which subcommittee shall 1202 include not less than one legislative appointee, may disqualify any 1203 contractor, bidder or proposer, for a period of not more than five years, 1204 from bidding on, applying for or participating as a contractor or 1205 subcontractor under, contracts with the state, quasi-public agencies or 1206 municipalities. Such disqualification shall be upon the vote of two-1207 thirds of the members of the subcommittee present and voting for that 1208 purpose. Such hearing shall be conducted in accordance with the 1209 provisions of chapter 54. The subcommittee shall issue a written 1210 recommendation not later than sixty days after the conclusion of such 1211 hearing, and shall state the reason for the recommended action and, if 1212 the disqualification is recommended, the period of time the contractor, 1213 bidder or proposer shall be disqualified. In determining whether to 1214 disqualify a contractor, bidder or proposer, the subcommittee shall 1215 consider the seriousness of the acts or omissions of the contractor, 1216 bidder or proposer and any mitigating factors. Such recommendation 1217 shall be submitted to the board for action and sent to the contractor by 1218 certified mail, return receipt requested. If disqualification is 1219 recommended, the contractor shall have thirty days to submit 1220 comments to the board. Upon receipt of the proposed recommendation 1221 Raised Bill No. 473 LCO No. 3459 40 of 60 by the subcommittee, the board shall issue a written decision either 1222 adopting, rejecting or modifying the subcommittee's recommendation. 1223 Such decision shall be issued not later than thirty days after receipt by 1224 the board of the contractor's comments, if any. The board shall send the 1225 decision to the contractor by certified mail, return receipt requested. The 1226 written decision shall be a final decision for purposes of sections 4-180 1227 and 4-183. 1228 (b) Causes for such disqualification shall include the following: 1229 (1) Conviction of, or entry of a plea of guilty or nolo contendere or 1230 admission to, the commission of a criminal offense as an incident to 1231 obtaining or attempting to obtain a public or private contract or 1232 subcontract, or in the performance of such contract or subcontract; 1233 (2) Conviction of, or entry of a plea of guilty or nolo contendere or 1234 admission to, the violation of any state or federal law for embezzlement, 1235 theft, forgery, bribery, falsification or destruction of records, receiving 1236 stolen property or any other offense indicating a lack of business 1237 integrity or business honesty which affects responsibility as a [state] 1238 contractor; 1239 (3) Conviction of, or entry of a plea of guilty or nolo contendere or 1240 admission to, a violation of any state or federal antitrust, collusion or 1241 conspiracy law arising out of the submission of bids or proposals on a 1242 public or private contract or subcontract; 1243 (4) Accumulation of two or more suspensions pursuant to section 4e-1244 35, as amended by this act, within a twenty-four-month period; 1245 (5) A wilful, negligent or reckless failure to perform in accordance 1246 with the terms of one or more contracts or subcontracts, agreements or 1247 transactions with [state] contracting agencies; 1248 (6) A history of failure to perform or of unsatisfactory performance 1249 on one or more public contracts, agreements or transactions with [state] 1250 contracting agencies; 1251 Raised Bill No. 473 LCO No. 3459 41 of 60 (7) A wilful violation of a statutory or regulatory provision or 1252 requirement applicable to a contract, agreement or transaction with 1253 [state] contracting agencies; 1254 (8) A wilful or egregious violation of the ethical standards set forth in 1255 sections 1-84, 1-86e and 1-101nn, as determined by the Citizen's Ethics 1256 Advisory Board; or 1257 (9) Any other cause or conduct the board determines to be so serious 1258 and compelling as to affect responsibility as a [state] contractor, 1259 including, but not limited to: 1260 (A) Disqualification by another state for cause; 1261 (B) The fraudulent or criminal conduct of any officer, director, 1262 shareholder, partner, employee or other individual associated with a 1263 contractor, bidder or proposer of such contractor, bidder or proposer, 1264 provided such conduct occurred in connection with the individual's 1265 performance of duties for or on behalf of such contractor, bidder or 1266 proposer and such contractor, bidder or proposer knew or had reason 1267 to know of such conduct; 1268 (C) The existence of an informal or formal business relationship with 1269 a contractor who has been disqualified from bidding or proposing on 1270 [state] contracts of any [state] contracting agency. 1271 (c) Upon written request by the affected [state] contractor, bidder or 1272 proposer, the State Contracting Standards Board may reduce the period 1273 or extent of disqualification for a contractor, bidder or proposer if 1274 documentation supporting any of the following reasons for 1275 modification is provided to the board by the contractor, bidder or 1276 proposer: 1277 (1) Newly discovered material evidence; 1278 (2) Reversal of the conviction upon which the disqualification was 1279 based; 1280 Raised Bill No. 473 LCO No. 3459 42 of 60 (3) Bona fide change in ownership or management; or 1281 (4) Elimination of other causes for which the disqualification was 1282 imposed. 1283 Sec. 31. Section 4e-35 of the general statutes is repealed and the 1284 following is substituted in lieu thereof (Effective July 1, 2022): 1285 (a) After reasonable notice and a hearing, conducted in accordance 1286 with the provisions of chapter 54, the department head of any [state] 1287 contracting agency of the state may suspend any contractor, bidder or 1288 proposer for a period of not more than six months from bidding on, 1289 applying for or performing work as a contractor or subcontractor under, 1290 contracts with the state. The department head shall issue a written 1291 decision not later than ninety days after the conclusion of such hearing 1292 and state in the decision the reasons for the action taken and, if the 1293 contractor, bidder or proposer is being suspended, the period of such 1294 suspension. In determining whether to suspend a contractor, bidder or 1295 proposer, the department head shall consider the seriousness of the acts 1296 or omissions of the contractor, bidder or proposer and any mitigating 1297 factors. The department head shall send such decision to the contractor 1298 and the State Contracting Standards Board by certified mail, return 1299 receipt requested. Such decision shall be a final decision for purposes of 1300 sections 4-180 and 4-183. 1301 (b) Causes for such suspension shall include the following: 1302 (1) Failure without good cause to perform in accordance with 1303 specifications or within the time limits provided in the contract; 1304 (2) A record of failure to perform or of unsatisfactory performance in 1305 accordance with the terms of one or more contracts, provided failure to 1306 perform or unsatisfactory performance caused by acts beyond the 1307 control of the contractor shall not be considered to be a basis for 1308 suspension; 1309 (3) Any cause the complainant [state] contracting agency determines 1310 Raised Bill No. 473 LCO No. 3459 43 of 60 to be so serious and compelling as to affect the responsibility of a state 1311 contractor, including suspension by another [state] contracting agency 1312 of the state for cause; or 1313 (4) A violation of the ethical standards set forth in section 1-84, 1-86e 1314 or 1-101nn, as determined by the Citizen's Ethics Advisory Board. 1315 (c) The State Contracting Standards Board may grant an exception 1316 permitting a suspended contractor to participate in a particular contract 1317 or subcontract upon a written determination by the board that there is 1318 good cause for such exception and that such exception is in the best 1319 interest of the state. 1320 (d) The department head of each [state] contracting agency of the 1321 state shall conduct reviews of contractors and shall file reports 1322 pertaining to any of the reasons set forth in this section that may be the 1323 basis for disqualification. 1324 Sec. 32. Subsections (g) to (i), inclusive, of section 4e-37 of the general 1325 statutes are repealed and the following is substituted in lieu thereof 1326 (Effective July 1, 2022): 1327 (g) In the event that the appeals review subcommittee or the board 1328 determines that a procedural violation occurred, or that allegations of 1329 an unauthorized or unwarranted, noncompetitive selection process 1330 have been substantiated, the board shall direct the [state] contracting 1331 agency of the state to take corrective action not later than thirty days 1332 after the date of the subcommittee's or board's decision, as applicable. 1333 (h) In the event such appeal is found to be frivolous by the appeals 1334 review subcommittee or the full board, such frivolous appeal may serve 1335 as a basis for disqualification pursuant to section 4e-34, as amended by 1336 this act. 1337 (i) Any three members of the board may request a full board review 1338 of any contract deliberation or award process of a [state] contracting 1339 agency. 1340 Raised Bill No. 473 LCO No. 3459 44 of 60 Sec. 33. Section 4e-38 of the general statutes is repealed and the 1341 following is substituted in lieu thereof (Effective July 1, 2022): 1342 The State Contracting Standards Board shall issue a decision in 1343 writing or take other appropriate action on each appeal submitted 1344 pursuant to section 4e-37, as amended by this act. A copy of any decision 1345 shall be provided to all parties, the department head of the [state] 1346 contracting agency of the state and the Chief Procurement Officer. 1347 Sec. 34. Section 4e-39 of the general statutes is repealed and the 1348 following is substituted in lieu thereof (Effective July 1, 2022): 1349 If, prior to award, it is determined by the State Contracting Standards 1350 Board that a solicitation or proposed award of a contract by a [state] 1351 contracting agency is in violation of law, then the solicitation or 1352 proposed award shall be: 1353 (1) Cancelled; or 1354 (2) Revised to comply with the law. 1355 Sec. 35. Section 4e-40 of the general statutes is repealed and the 1356 following is substituted in lieu thereof (Effective July 1, 2022): 1357 If, after an award, it is determined by the State Contracting Standards 1358 Board that a solicitation or award of a contract by a [state] contracting 1359 agency is in violation of law: 1360 (1) If the person awarded the contract did not act in bad faith: 1361 (A) The contract may be ratified and affirmed by the [state] 1362 contracting agency, provided it is determined by the board that doing 1363 so is in the best interests of the state or the municipality; or 1364 (B) The contract may be terminated and the person awarded the 1365 contract shall be compensated for the actual expenses reasonably 1366 incurred under the contract, plus a reasonable profit, prior to the 1367 termination. 1368 Raised Bill No. 473 LCO No. 3459 45 of 60 (2) If the person awarded the contract acted in bad faith: 1369 (A) The contract may be declared null and void; or 1370 (B) The contract may be ratified and affirmed if such action is in the 1371 best interests of the state or the municipality, as determined by the State 1372 Contracting Standards Board, in writing, without prejudice to the 1373 [state's] contracting agency's right to such damages as may be 1374 appropriate. 1375 Sec. 36. Section 4e-43 of the general statutes is repealed and the 1376 following is substituted in lieu thereof (Effective July 1, 2022): 1377 Not later than June 1, 2010, the State Insurance and Risk Management 1378 Board established pursuant to section 4a-19 shall adopt regulations, in 1379 accordance with the provisions of chapter 54, in consultation with the 1380 State Contracting Standards Board, that specify when a [state] 1381 contracting agency shall require proposers to provide appropriate 1382 errors and omissions insurance to cover architectural and engineering 1383 services under the project delivery methods established in regulations 1384 adopted pursuant to section 4e-41. 1385 Sec. 37. Section 4e-45 of the general statutes is repealed and the 1386 following is substituted in lieu thereof (Effective July 1, 2022): 1387 With respect to infrastructure facilities, not later than June 1, 2010, the 1388 State Contracting Standards Board, in consultation with the [state] 1389 contracting agencies and the Attorney General, shall adopt regulations, 1390 in accordance with the provisions of chapter 54, requiring the inclusion 1391 in [state] contracts with any [state] contracting agency of clauses 1392 providing for adjustments in prices, time of performance, remedies, 1393 termination or other contract provisions necessary to protect the 1394 interests of the state or the contracting agency. 1395 Sec. 38. Section 4e-46 of the general statutes is repealed and the 1396 following is substituted in lieu thereof (Effective July 1, 2022): 1397 Not later than June 1, 2010, the State Contracting Standards Board 1398 Raised Bill No. 473 LCO No. 3459 46 of 60 shall adopt regulations, in accordance with the provisions of chapter 54, 1399 concerning the procedure and circumstances under which a [state] 1400 contracting agency may allow contract modification, change order, or 1401 contract price adjustment under a construction contract with the [state] 1402 contracting agency in excess of fifty thousand dollars. Such regulations 1403 shall require that every contract modification, change order or contract 1404 price adjustment under a construction contract with [the state] a 1405 contracting agency in excess of fifty thousand dollars shall be subject to 1406 prior written certification by the fiscal officer of the [state] contracting 1407 agency or other agency responsible for funding the project or the 1408 contract, or other official responsible for monitoring and reporting upon 1409 the status of the costs of the total project budget or contract budget, as 1410 to the effect of the contract modification, change order, or adjustment in 1411 contract price on the total project budget or the total contract budget. 1412 Such regulations shall further provide that in the event the certification 1413 of the fiscal officer or other responsible official discloses a resulting 1414 increase in the total project budget or the total contract budget, the 1415 agency procurement officer shall not execute or make such contract 1416 modification, change order, or adjustment in contract price unless 1417 sufficient funds are available or the scope of the project or contract is 1418 adjusted so as to permit the degree of completion that is feasible within 1419 the total project budget or total contract budget as it existed prior to the 1420 contract modification, change order, or adjustment in contract price 1421 under consideration provided, with respect to the validity, as to the 1422 contractor, of any executed contract modification, change order, or 1423 adjustment in contract price which the contractor has reasonably relied 1424 upon, it shall be presumed that there has been compliance with the 1425 provisions of this section. 1426 Sec. 39. Section 4e-48 of the general statutes is repealed and the 1427 following is substituted in lieu thereof (Effective July 1, 2022): 1428 (a) For the purposes of this section, "nonresident bidder" means a 1429 business that is not a resident of the state that submits a bid in response 1430 to an invitation to bid by a [state] contracting agency, "resident bidder" 1431 means a business that submits a bid in response to an invitation to bid 1432 Raised Bill No. 473 LCO No. 3459 47 of 60 by a [state] contracting agency and that has paid unemployment taxes 1433 or income taxes in this state during the twelve calendar months 1434 immediately preceding submission of such bid, has a business address 1435 in the state and has affirmatively claimed such status in the bid 1436 submission, and "contract" [means "contract" as defined in section 4e-1 1437 and "state contracting agency" means "state contracting agency", as 1438 defined] and "contracting agency" have the same meanings as provided 1439 in section 4e-1, as amended by this act. 1440 (b) Notwithstanding any provision of law, in the award of a contract, 1441 after the original bids have been received and an original lowest 1442 responsible qualified bid is identified, a [state] contracting agency shall 1443 add a per cent increase to the original bid of a nonresident bidder equal 1444 to the per cent, if any, of the preference given to such nonresident bidder 1445 in the state in which such nonresident bidder resides. If, after 1446 application of such per cent increase, the bidder that submits the lowest 1447 responsible qualified bid is a resident bidder, the [state] contracting 1448 agency shall award such contract to such resident bidder provided such 1449 resident bidder agrees, in writing, to meet the original lowest 1450 responsible qualified bid. Any such agreement by such resident bidder 1451 to meet the original lowest responsible qualified bid shall be made not 1452 later than seventy-two hours after such resident bidder receives notice 1453 from such [state] contracting agency that such resident bidder may be 1454 awarded such contract if such resident bidder agrees to meet the 1455 original lowest responsible qualified bid. 1456 (c) Not later than January 1, 2009, and each January thereafter, the 1457 State Contracting Standards Board shall publish a list of states that give 1458 preference to in-state bidders with the per cent increase applied in each 1459 state. Such list shall be made available to all [state] contracting agencies 1460 and may be relied upon by such agencies in determining the lowest 1461 responsible bidder. 1462 Sec. 40. Section 4e-72 of the 2022 supplement to the general statutes 1463 is repealed and the following is substituted in lieu thereof (Effective July 1464 1, 2022): 1465 Raised Bill No. 473 LCO No. 3459 48 of 60 As used in this section, "contract", ["state contracting agency"] 1466 "contracting agency", "data" and "contractor" have the same meanings 1467 as provided in section 4e-1, as amended by this act. Any contract 1468 between a [state] contracting agency of the state and a contractor that is 1469 entered into, renewed or amended on or after October 1, 2021, shall 1470 contain a provision authorizing the [state] contracting agency to access 1471 any data concerning such contract that is in the possession or control of 1472 the contractor upon demand in a format prescribed by the [state] 1473 contracting agency at no additional cost to such agency. 1474 Sec. 41. Section 15-31b of the 2022 supplement to the general statutes 1475 is repealed and the following is substituted in lieu thereof (Effective July 1476 1, 2022): 1477 (a) The purposes of the Connecticut Port Authority shall be to 1478 coordinate the development of Connecticut's ports and harbors, with a 1479 focus on private and public investments, pursue federal and state funds 1480 for dredging and other infrastructure improvements to increase cargo 1481 movement through the ports and maintain navigability of all ports and 1482 harbors, market the economic development of such ports and harbors, 1483 work with the Department of Economic and Community Development 1484 and other state, local and private entities to maximize the economic 1485 potential of the ports and harbors, support and enhance the overall 1486 development of the state's maritime commerce and industries, 1487 coordinate the planning and funding of capital projects promoting the 1488 development of the ports and harbors, develop strategic entrepreneurial 1489 initiatives that may be available to the state, coordinate the state's 1490 maritime policy activities, serve as the Governor's principal maritime 1491 policy advisor and undertake such other responsibilities as may be 1492 assigned to it. To accomplish the purposes of the authority, the authority 1493 shall have the duty and power to: 1494 (1) Have perpetual succession as a body politic and corporate and to 1495 adopt bylaws for the regulation of its affairs and the conduct of its 1496 business; 1497 Raised Bill No. 473 LCO No. 3459 49 of 60 (2) Adopt an official seal and alter the same at pleasure; 1498 (3) Maintain an office at such place or places as it may designate; 1499 (4) Sue and be sued in its own name, and plead and be impleaded; 1500 (5) Develop an organizational and management structure that will 1501 best accomplish the goals of the authority concerning Connecticut ports 1502 and harbors; 1503 (6) Create a code of conduct for the board of directors of the authority 1504 consistent with part I of chapter 10; 1505 (7) Adopt rules for the conduct of its business, which shall not be 1506 considered regulations as defined in section 4-166; 1507 (8) Adopt an annual budget and plan of operations, including a 1508 requirement of board approval before the budget or plan may take 1509 effect; 1510 (9) Make and enter into all contracts and agreements that are 1511 necessary, desirable or incidental to the conduct of its business; 1512 (10) Enter into joint ventures and invest in, and participate with, any 1513 person or entity, including, without limitation, governmental or private 1514 business entities in the formation, ownership, management and 1515 operation of business entities, including stock and nonstock 1516 corporations, limited liability companies and general and limited 1517 partnerships, formed to advance the purposes of the authority. The 1518 officers, employees and members of the board of directors of the 1519 authority may serve, without compensation, as directors or officers of 1520 any such business entities formed and such service shall be deemed to 1521 be within the discharge of the duties of such officers, employees or 1522 directors to the authority; 1523 (11) Receive and accept, from any source, aid or contributions, 1524 including money, property, labor and other things of value; 1525 Raised Bill No. 473 LCO No. 3459 50 of 60 (12) Award grants and subsidies, make loans and provide other 1526 forms of financial assistance to any person or entity under a written 1527 policy, adopted in accordance with the provisions of section 1-121, 1528 setting forth the eligibility criteria, application process, and such other 1529 provisions as may be necessary or desirable to carry out the purposes of 1530 this section; 1531 (13) Charge reasonable fees for the services it performs and waive, 1532 suspend, reduce or otherwise modify such fees in accordance with 1533 written criteria established by the authority, and provided, that no 1534 change may be made in fees without at least thirty days prior notice, 1535 published in accordance with the provisions of section 1-121; 1536 (14) Employ such assistants, agents and other employees as may be 1537 necessary or desirable to carry out its purposes. (A) The executive 1538 director and such employees shall be exempt from the classified service 1539 and, except as provided in subparagraph (B) of this subdivision, shall 1540 not be employees, as defined in subsection (b) of section 5-270. The 1541 authority shall fix appropriate compensation for such employees and 1542 establish all necessary or appropriate personnel practices and policies, 1543 including those relating to hiring, promotion, compensation, retirement 1544 and collective bargaining, which need not be in accordance with chapter 1545 68, and the authority shall not be an employer, as defined in subsection 1546 (a) of section 5-270, and may engage consultants, attorneys and 1547 appraisers as may be necessary or desirable to carry out its purposes in 1548 accordance with sections 15-31a to 15-31i, inclusive. (B) For purposes of 1549 group welfare benefits and retirement, including, but not limited to, 1550 those provided under chapter 66 and sections 5-257 and 5-259, the 1551 officers and all other employees of the authority shall be state 1552 employees. The authority shall reimburse the appropriate state agencies 1553 for all costs incurred by such designation; 1554 (15) Invest in, acquire, lease, purchase, own, manage, hold and 1555 dispose of real property and lease, convey or deal in or enter into 1556 agreements with respect to such property on any terms necessary or 1557 incidental to carrying out the purposes of sections 15-31a to 15-31i, 1558 Raised Bill No. 473 LCO No. 3459 51 of 60 inclusive, provided such transactions shall not be subject to approval, 1559 review or regulation by any state agency pursuant to title 4b or any other 1560 provision of the general statutes, except (A) the authority shall not 1561 convey fee simple ownership in any property associated with the ports 1562 or harbors under its jurisdiction and control without the approval of the 1563 State Properties Review Board and the Attorney General, and (B) as 1564 provided in [subsection (c) of this section] chapter 62; and 1565 (16) Adopt any policies and procedures necessary to carry out the 1566 provisions of this section in accordance with the provisions of section 1-1567 121. 1568 (b) The authority shall continue as long as it has bonds or other 1569 obligations outstanding and until its existence is terminated by law, 1570 provided no such termination shall affect any outstanding contractual 1571 obligation of the authority and the state shall succeed to the obligations 1572 of the authority under any contract. Upon the termination of the 1573 existence of the authority, all its rights and properties shall pass to and 1574 be vested in the state of Connecticut. 1575 [(c) On and after June 23, 2021, until July 1, 2026, the authority shall 1576 be a state contracting agency for the purposes of chapter 62, except for 1577 the provisions of section 4e-16, and shall be subject to the authority of 1578 the State Contracting Standards Board established under section 4e-2.] 1579 Sec. 42. Subsection (e) of section 19a-32s of the general statutes is 1580 repealed and the following is substituted in lieu thereof (Effective July 1, 1581 2022): 1582 (e) For purposes of this section and section 19a-32r, the board shall 1583 not be considered a [state] contracting agency, as defined in [subdivision 1584 (28) of] section 4e-1, as amended by this act. 1585 Sec. 43. Subsection (c) of section 10-357b of the 2022 supplement to 1586 the general statutes is repealed and the following is substituted in lieu 1587 thereof (Effective July 1, 2022): 1588 Raised Bill No. 473 LCO No. 3459 52 of 60 (c) The State Education Resource Center shall be subject to (1) rules, 1589 regulations and restrictions on purchasing, procurement, personal 1590 service agreements and the disposition of assets generally applicable to 1591 Connecticut state agencies, including those contained in titles 4, 4a and 1592 4b and [section 4e-19] chapter 62, and (2) audit by the Auditors of Public 1593 Accounts under chapter 12 and section 2-90. 1594 Sec. 44. Section 10a-196 of the general statutes is repealed and the 1595 following is substituted in lieu thereof (Effective July 1, 2022): 1596 Sections 10a-176 to 10a-195, inclusive, shall be deemed to provide a 1597 complete, additional and alternative method for the doing of the things 1598 authorized thereby, and shall be regarded as supplemental and 1599 additional to powers conferred by other laws; provided the issuance of 1600 bonds and refunding bonds under the provisions of this chapter need 1601 not comply with the requirements of any other law applicable to the 1602 issuance of bonds including, particularly, title 42a; and provided in the 1603 construction and acquisition of a project pursuant hereto the authority 1604 need not comply with the requirements of chapter 50. Except as 1605 otherwise expressly provided in this chapter, none of the powers 1606 granted to the authority under the provisions of this chapter shall be 1607 subject to the supervision or regulation or require the approval or 1608 consent of any municipality or political subdivision or any commission, 1609 board, body, bureau, official or agency thereof or of the state, except for 1610 the provisions concerning quasi-public agencies set forth in chapter 62. 1611 Sec. 45. Subsection (s) of section 10a-204b of the general statutes is 1612 repealed and the following is substituted in lieu thereof (Effective July 1, 1613 2022): 1614 (s) The provisions of this section shall be deemed to provide a 1615 complete, additional and alternative method for the actions and the 1616 things authorized thereby and shall be regarded as supplemental and 1617 additional to powers granted by other laws; the issuance of bonds, notes 1618 or other obligations under the provisions of this section need not comply 1619 with the requirements of any law applicable to the issuance of bonds, 1620 Raised Bill No. 473 LCO No. 3459 53 of 60 notes or other obligations. This section, being necessary for the welfare 1621 of the state and its inhabitants, shall be liberally construed to affect its 1622 purpose. None of the powers granted to the corporation or to any 1623 subsidiary created pursuant to subdivision (5) of section 10a-204 under 1624 the provisions of this section shall be subject to the supervision or 1625 regulation or require the approval or consent of any municipality or 1626 political subdivision or any department, division, commission, board, 1627 body, bureau, official or agency thereof or of the state, and the exercise 1628 thereof shall not cause the corporation or any such subsidiary to be 1629 construed to be an agency within the scope of chapter 54 or a 1630 department, institution or agency of the state, except that the 1631 corporation or any such subsidiary shall comply with any provisions of 1632 chapter 62 concerning quasi-public agencies. 1633 Sec. 46. Section 10a-243 of the general statutes is repealed and the 1634 following is substituted in lieu thereof (Effective July 1, 2022): 1635 The provisions of this chapter shall be deemed to provide a complete, 1636 additional and alternative method for the actions of the things 1637 authorized thereby and shall be regarded as supplemental and 1638 additional to powers granted by other laws; the issuance of revenue 1639 bonds or notes and revenue refunding bonds or notes under the 1640 provisions of this chapter need not comply with the requirements of any 1641 other law applicable to the issuance of bonds or notes. This chapter, 1642 being necessary for the welfare of the state and its inhabitants, shall be 1643 liberally construed to effect its purpose. Except as otherwise expressly 1644 provided in this chapter or the provisions concerning quasi-public 1645 agencies in chapter 62, none of the powers granted to the authority 1646 under the provisions of this chapter shall be subject to the supervision 1647 or regulation or require the approval or consent of any municipality or 1648 political subdivision or any department, division, commission, board, 1649 body, bureau, official or agency thereof or of the state. The authority 1650 shall not be construed to be an agency within the scope of chapter 54 or 1651 a department, institution or agency of the state. 1652 Sec. 47. Subdivision (16) of subsection (b) of section 12-806 of the 2022 1653 Raised Bill No. 473 LCO No. 3459 54 of 60 supplement to the general statutes is repealed and the following is 1654 substituted in lieu thereof (Effective July 1, 2022): 1655 (16) To invest in, acquire, lease, purchase, own, manage, hold and 1656 dispose of real property and lease, convey or deal in or enter into 1657 agreements with respect to such property on any terms necessary or 1658 incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-1659 818, inclusive, and sections 12-853 and 12-854, provided such 1660 transactions shall not be subject to approval, review or regulation 1661 pursuant to title 4b or any other statute by any state agency, except that 1662 real property transactions shall be subject to review by the State 1663 Properties Review Board and contracts shall be subject to the applicable 1664 provisions of chapter 62; 1665 Sec. 48. Section 12-815 of the general statutes is repealed and the 1666 following is substituted in lieu thereof (Effective July 1, 2022): 1667 (a) The corporation shall establish and adopt specific policies, rules 1668 and procedures on purchasing and contracting. Such policies, rules and 1669 procedures or amendments thereto shall be approved by a two-thirds 1670 vote of the entire board. Notwithstanding any other provision of law to 1671 the contrary, the corporation may enter into management, consulting 1672 and other agreements for the provision of goods, services and 1673 professional advisors necessary or useful in connection with the 1674 operation and management of the lottery (1) pursuant to a process of 1675 open or competitive bidding, provided (A) the corporation shall first 1676 determine the format, content and scope of any agreement for any 1677 procurement of goods or services, the conditions under which bidding 1678 will take place and the schedule and stipulations for contract award, and 1679 (B) the corporation may select the contractor deemed to have submitted 1680 the most favorable bid, considering price and other factors, when, in the 1681 judgment of the corporation, such award is in the best interests of the 1682 corporation, or (2) if the corporation, in its discretion, determines that, 1683 due to the nature of the agreement to be contracted for or procured, 1684 open or public bidding is either impracticable or not in the best interests 1685 of the corporation, by negotiation with such prospective providers as 1686 Raised Bill No. 473 LCO No. 3459 55 of 60 the corporation may determine. The terms and conditions of agreements 1687 and the fees or other compensation to be paid to such persons shall be 1688 determined by the corporation. The agreements entered into by the 1689 corporation in accordance with the provisions of this section shall not 1690 be subject to the approval of any state department, office or agency, 1691 except as provided in any applicable provision of chapter 62 or 1692 regulations adopted by the Department of Consumer Protection. 1693 Nothing in this section shall be deemed to restrict the discretion of the 1694 corporation to utilize its own staff and workforce for the performance of 1695 any of its assigned responsibilities and functions whenever, in the 1696 discretion of the corporation, it becomes necessary, convenient or 1697 desirable to do so. Copies of all agreements of the corporation shall be 1698 maintained by the corporation at its offices as public records, subject to 1699 said exemption. 1700 (b) [The] Except as provided in chapter 62, the corporation shall not 1701 be subject to rules, regulations or restrictions on purchasing or 1702 procurement or the disposition of assets generally applicable to 1703 Connecticut state agencies, including those contained in titles 4a and 4b 1704 and the corresponding rules and regulations. The board shall adopt 1705 rules and procedures on purchasing, procurement and the disposition 1706 of assets applicable to the corporation. The adoption of such rules or 1707 procedures shall not be subject to chapter 54. Any such rules or 1708 procedures shall be a public record, as defined in section 1-200. 1709 Sec. 49. Section 22a-268 of the general statutes is repealed and the 1710 following is substituted in lieu thereof (Effective July 1, 2022): 1711 The authority shall utilize private industry, by contract, to carry out 1712 the business, design, operating, management, marketing, planning and 1713 research and development functions of the authority, unless the 1714 authority determines that it is in the public interest to adopt another 1715 course of action. The authority is hereby empowered to enter into long-1716 term contracts with private persons for the performance of any such 1717 functions of the authority which, in the opinion of the authority, can 1718 desirably and conveniently be carried out by a private person under 1719 Raised Bill No. 473 LCO No. 3459 56 of 60 contract provided any such contract shall contain such terms and 1720 conditions as will enable the authority to retain overall supervision and 1721 control of the business, design, operating, management, transportation, 1722 marketing, planning and research and development functions to be 1723 carried out or to be performed by such private persons pursuant to such 1724 contract. Such contracts shall be entered into either on a competitive 1725 negotiation or competitive bidding basis, and the authority in its 1726 discretion may select the type of contract it deems most prudent to 1727 utilize, pursuant to the contracting procedures adopted under section 1728 22a-268a and considering the scope of work, the management 1729 complexities associated therewith, the extent of current and future 1730 technological development requirements and the best interests of the 1731 state. Whenever a long-term contract is entered into on other than a 1732 competitive bidding basis, the criteria and procedures therefor shall 1733 conform to applicable provisions of subdivision (16) of subsection (a) 1734 and subsections (b) and (c) of section 22a-266, provided however, that 1735 any contract for a period of over five years in duration, or any contract 1736 for which the annual consideration is greater than fifty thousand dollars 1737 shall be approved by a two-thirds vote of the authority's full board of 1738 directors. The terms and conditions of such contracts shall be 1739 determined by the authority, as shall the fees or other similar 1740 compensation to be paid to such persons for such contracts. The 1741 contracts entered into by the authority shall not be subject to the 1742 approval of any other state department, office or agency, except as 1743 provided in chapter 62. However, copies of all contracts of the authority 1744 shall be maintained by the authority as public records, subject to the 1745 proprietary rights of any party to the contract. Nothing of the aforesaid 1746 shall be deemed to restrict the discretion of the authority to utilize its 1747 own staff and work force for the performance of any of its assigned 1748 responsibilities and functions whenever, in the discretion of the 1749 authority, it becomes necessary, convenient or desirable to do so. Any 1750 litigation with respect to any terms, conditions or provisions of any 1751 contract of the authority, or the performance or nonperformance of same 1752 by either party, shall be tried before a judge of the Superior Court of 1753 Connecticut. 1754 Raised Bill No. 473 LCO No. 3459 57 of 60 Sec. 50. Subdivision (14) of subsection (b) of section 31-49h of the 1755 general statutes is repealed and the following is substituted in lieu 1756 thereof (Effective July 1, 2022): 1757 (14) Make and enter into any contract or agreement necessary or 1758 incidental to the performance of its duties and execution of its powers. 1759 [The] Except as provided in chapter 62, the contracts and agreements 1760 entered into by the authority shall not be subject to the approval of any 1761 other state department, office or agency, provided copies of all such 1762 contracts shall be maintained by the authority as public records, subject 1763 to the proprietary rights of any party to such contracts. No contract shall 1764 contain any provision in which any contractor derives any direct or 1765 indirect economic benefit from denying or otherwise influencing the 1766 outcome of any claim for benefits. The standard criteria for the 1767 evaluation of proposals relating to claims processing, web site 1768 development, database development, marketing and advertising, in the 1769 event the authority seeks the services of an outside contractor for such 1770 tasks, and for the evaluation of proposals relating to all other contracts 1771 in amounts equal to or exceeding two hundred fifty thousand dollars 1772 shall include, but need not be limited to: (A) Transparency, (B) cost, (C) 1773 efficiency of operations, (D) quality of work related to the contracts 1774 issued, (E) user experience, (F) accountability, and (G) a cost-benefit 1775 analysis documenting the direct and indirect costs of such contracts, 1776 including qualitative and quantitative benefits that will result from the 1777 implementation of such contracts. The establishment of additional 1778 standard criteria shall be approved by a two-thirds vote of the board 1779 after such criteria have been posted on a public Internet web site 1780 maintained by the authority for notice and comment for at least one 1781 week prior to such vote. 1782 Sec. 51. Subdivision (13) of subsection (c) of section 38a-1083 of the 1783 2022 supplement to the general statutes is repealed and the following is 1784 substituted in lieu thereof (Effective July 1, 2022): 1785 (13) Make and enter into any contract or agreement necessary or 1786 incidental to the performance of its duties and execution of its powers, 1787 Raised Bill No. 473 LCO No. 3459 58 of 60 including, but not limited to, an agreement with the Office of Health 1788 Strategy to use funds collected under this section for the operation of 1789 the all-payer claims database established under section 19a-755a and to 1790 receive data from such database. The contracts entered into by the 1791 exchange shall not be subject to the approval of any other state 1792 department, office or agency, provided copies of all contracts of the 1793 exchange shall be maintained by the exchange as public records, subject 1794 to the proprietary rights of any party to the contract, except (A) as 1795 provided in chapter 62, and (B) any agreement with the Office of Health 1796 Strategy shall be subject to approval by said office and the Office of 1797 Policy and Management and no portion of such agreement shall be 1798 considered proprietary; 1799 Sec. 52. (Effective July 1, 2022) The sum of four hundred sixty-seven 1800 thousand fifty-five dollars is appropriated to the State Contracting 1801 Standards Board from the General Fund, for the fiscal year ending June 1802 30, 2023, for purposes of funding the filling of five positions in 1803 accordance with section 2 of this act. 1804 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 July 1, 2022 New section Sec. 3 July 1, 2022 4e-1 Sec. 4 July 1, 2022 4e-2(f) to (h) Sec. 5 July 1, 2022 4e-3 Sec. 6 July 1, 2022 4e-4 Sec. 7 July 1, 2022 4e-5(a) to (c) Sec. 8 July 1, 2022 4e-6 Sec. 9 July 1, 2022 4e-7 Sec. 10 July 1, 2022 4e-8 Sec. 11 July 1, 2022 4e-10 Sec. 12 July 1, 2022 4e-14 Sec. 13 July 1, 2022 4e-16 Sec. 14 July 1, 2022 4e-17 Sec. 15 July 1, 2022 4e-18 Sec. 16 July 1, 2022 4e-19 Raised Bill No. 473 LCO No. 3459 59 of 60 Sec. 17 July 1, 2022 4e-21 Sec. 18 July 1, 2022 4e-24 Sec. 19 July 1, 2022 4b-51(d) Sec. 20 July 1, 2022 4b-57(a) Sec. 21 July 1, 2022 4b-91(g) Sec. 22 July 1, 2022 4e-25 Sec. 23 July 1, 2022 4e-27 Sec. 24 July 1, 2022 4e-28 Sec. 25 July 1, 2022 4e-29 Sec. 26 July 1, 2022 4e-30 Sec. 27 July 1, 2022 4e-31 Sec. 28 July 1, 2022 4e-32 Sec. 29 July 1, 2022 4e-33 Sec. 30 July 1, 2022 4e-34 Sec. 31 July 1, 2022 4e-35 Sec. 32 July 1, 2022 4e-37(g) to (i) Sec. 33 July 1, 2022 4e-38 Sec. 34 July 1, 2022 4e-39 Sec. 35 July 1, 2022 4e-40 Sec. 36 July 1, 2022 4e-43 Sec. 37 July 1, 2022 4e-45 Sec. 38 July 1, 2022 4e-46 Sec. 39 July 1, 2022 4e-48 Sec. 40 July 1, 2022 4e-72 Sec. 41 July 1, 2022 15-31b Sec. 42 July 1, 2022 19a-32s(e) Sec. 43 July 1, 2022 10-357b(c) Sec. 44 July 1, 2022 10a-196 Sec. 45 July 1, 2022 10a-204b(s) Sec. 46 July 1, 2022 10a-243 Sec. 47 July 1, 2022 12-806(b)(16) Sec. 48 July 1, 2022 12-815 Sec. 49 July 1, 2022 22a-268 Sec. 50 July 1, 2022 31-49h(b)(14) Sec. 51 July 1, 2022 38a-1083(c)(13) Sec. 52 July 1, 2022 New section Statement of Purpose: To make revisions to provisions concerning the State Contracting Standards Board, including by giving the board authority over quasi- public agency and municipal procurement, requiring the hiring of full- Raised Bill No. 473 LCO No. 3459 60 of 60 time staff for the board, prohibiting the Governor from reducing allotments to the board and limiting the selection of contractors from a list without a competitive process to emergency procurements. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]