LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473-R01- SB.docx 1 of 60 General Assembly Substitute Bill No. 473 February Session, 2022 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 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 Section 4e-1 of the general statutes is repealed and the 16 following is substituted in lieu thereof (Effective July 1, 2022): 17 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 2 of 60 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 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 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 3 of 60 (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] 71 contracting agency accepts a bid or proposal to furnish supplies, 72 materials, equipment or contractual services at a stated price for a 73 specific period of time in response to an invitation to bid; 74 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 4 of 60 (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 or quasi-public agency employees. "Contractual 97 services" includes the design, development and implementation of 98 technology, communications or telecommunications systems or the 99 infrastructure pertaining thereto, including hardware and software and 100 services for which a contractor is conferred a benefit by the [state] 101 contracting agency, whether or not compensated by the [state] 102 contracting agency. "Contractual services" does not include 103 employment agreements or collective bargaining agreements; 104 (13) "Data" means recorded information, regardless of form or 105 characteristic; 106 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 5 of 60 (14) "Vote of two-thirds of the members of the board present and 107 voting" means a vote by the State Contracting Standards Board that is 108 agreed upon by two-thirds of the members of the State Contracting 109 Standards Board present and voting for a particular purpose and that 110 includes the vote of one member of the board appointed by a legislative 111 leader; 112 (15) "Electronic" means electrical, digital, magnetic, optical, 113 electromagnetic, or any other similar technology; 114 (16) "Emergency procurement" means procurement by a [state] 115 contracting agency, [quasi-public agency, as defined in section 1-120,] 116 judicial department or constituent unit of higher education that is made 117 necessary by a sudden, unexpected occurrence that poses a clear and 118 imminent danger to public safety or requires immediate action to 119 prevent or mitigate the loss or impairment of life, health, property or 120 essential public services or in response to a court order, settlement 121 agreement or other similar legal judgment; 122 (17) "Equipment" means personal property of a durable nature that 123 retains its identity throughout its useful life; 124 (18) "Materials" means items required to perform a function or used 125 in a manufacturing process, particularly those incorporated into an end 126 product or consumed in its manufacture; 127 (19) "Nonprofit agency" means any organization that is not a for-128 profit business under Section 501(c)(3) of the Internal Revenue Code of 129 1986, or any subsequent corresponding internal revenue code of the 130 United States, as amended from time to time, [amended,] makes no 131 distribution to its members, directors or officers and provides services 132 contracted for by (A) the state or a quasi-public agency, or (B) a nonstate 133 entity; 134 (20) "Professional services" means any type of service to the public 135 that requires that members of a profession rendering such service obtain 136 a license or other legal authorization as a condition precedent to the 137 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 6 of 60 rendition thereof, including, but not limited to, the professional services 138 of architects, professional engineers, or jointly by architects and 139 professional engineers, landscape architects, certified public 140 accountants and public accountants, land surveyors, attorneys-at-law, 141 psychologists, licensed marital and family therapists, licensed 142 professional counselors and licensed clinical social workers as well as 143 such other professional services described in section 33-182a; 144 (21) "Privatization contract" means an agreement or series of 145 agreements between a [state] contracting agency and a person or entity 146 in which such person or entity agrees to provide services that are 147 substantially similar to and in lieu of services provided, in whole or in 148 part, by state or quasi-public agency employees, other than contracts 149 with a nonprofit agency, which are in effect as of January 1, 2009, and 150 which through a renewal, modification, extension or rebidding of 151 contracts continue to be provided by a nonprofit agency; 152 (22) "Procurement" means contracting for, buying, purchasing, 153 renting, leasing or otherwise acquiring or disposing of, any supplies, 154 services, including, but not limited to, contracts for purchase of services 155 and personal service agreements, interest in real property, or 156 construction, and includes all government functions that relate to such 157 activities, including best value selection and qualification based 158 selection; 159 (23) "Proposer" means a business submitting a proposal to a [state] 160 contracting agency in response to a request for proposals or other 161 competitive sealed proposal; 162 (24) "Public record" means a public record, as defined in section 1-163 200; 164 (25) "Qualification based selection" means a contract selection process 165 in which the award of a contract is primarily based on an assessment of 166 contractor qualifications and on the negotiation of a fair and reasonable 167 price; 168 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 7 of 60 (26) "Regulation" means regulation, as defined in section 4-166; 169 (27) "Request for proposals" means all documents, whether attached 170 or incorporated by reference, utilized for soliciting proposals; 171 (28) ["State contracting agency"] "Contracting agency" means any 172 executive branch agency, board, commission, department, office, 173 institution, [or] council or quasi-public agency. "State contracting 174 agency" does not include the judicial branch, the legislative branch, the 175 offices of the Secretary of the State, the State Comptroller, the Attorney 176 General, the State Treasurer, with respect to their constitutional 177 functions [,] or any state agency with respect to contracts specific to the 178 constitutional and statutory functions of the office of the State Treasurer. 179 For the purposes of section 4e-16, ["state contracting agency"] as 180 amended by this act, "contracting agency" includes any constituent unit 181 of the state system of higher education; [and for the purposes of section 182 4e-19, "state contracting agency" includes the State Education Resource 183 Center, established under section 10-4q;] 184 (29) "Subcontractor" means a subcontractor of a contractor for work 185 under a contract or an amendment to a contract; 186 (30) "Supplies" means any and all articles of personal property, 187 including, but not limited to, equipment, materials, printing, insurance 188 and leases of real property, excluding land or a permanent interest in 189 land furnished to or used by any [state] contracting agency; 190 (31) "Infrastructure facility" means a building, structure or network 191 of buildings, structures, pipes, controls and equipment that provide 192 transportation, utilities, public education or public safety services. 193 [Infrastructure facility] "Infrastructure facility" includes government 194 office buildings, public schools, jails, water treatment plants, 195 distribution systems and pumping stations, wastewater treatment 196 plants, collections systems and pumping stations, solid waste disposal 197 plants, incinerators, landfills, and related facilities, public roads and 198 streets, highways, public parking facilities, public transportation 199 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 8 of 60 systems, terminals and rolling stock, rail, air and water port structures, 200 terminals and equipment; [and] 201 (32) "State employee" means state employee, as defined in section 5-202 154 and, for purposes of section 4e-16, [state employee] as amended by 203 this act, "state employee" includes an employee of any [state] contracting 204 agency [.] that is not a quasi-public agency; and 205 (33) "Quasi-public agency" has the same meaning as provided in 206 section 1-120. 207 Sec. 4. Subsections (g) and (h) of section 4e-2 of the general statutes 208 are repealed and the following is substituted in lieu thereof (Effective July 209 1, 2022): 210 (g) The board shall appoint a Chief Procurement Officer for a term 211 not to exceed six years, unless reappointed pursuant to the provisions 212 of this subsection. The Chief Procurement Officer shall report to the 213 board and annually be evaluated by, and serve at the pleasure of, the 214 board. For administrative purposes only, the Chief Procurement Officer 215 shall be supervised by the executive director. 216 (1) The Chief Procurement Officer shall be responsible for carrying 217 out the policies of the board relating to procurement including, but not 218 limited to, oversight, investigation, auditing, agency procurement 219 certification and procurement and project management training and 220 enforcement of [said] such policies as well as the application of such 221 policies to the screening and evaluation of current and prospective 222 contractors. The Chief Procurement Officer may enter into such 223 contractual agreements as may be necessary for the discharge of the 224 duties as set forth in this subsection and by the board, including, but not 225 limited to, recommending best practices and providing operational and 226 administrative assistance to [state] contracting agencies determined, by 227 the board, to be in violation of sections 4e-16 to 4e-47, inclusive, as 228 amended by this act. 229 (2) In addition to the duties set forth by the board, the Chief 230 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 9 of 60 Procurement Officer shall (A) oversee [state] contracting agency 231 compliance with the provisions of statutes and regulations concerning 232 procurement; (B) monitor and assess the performance of the 233 procurement duties of each agency procurement officer; (C) administer 234 the certification system and monitor the level of agency compliance with 235 the requirements of statutes and regulations concerning procurement, 236 including, but not limited to, the education and training, performance 237 and qualifications of agency procurement officers; (D) review and 238 monitor the procurement processes of each [state] contracting agency, 239 [quasi-public agencies and] including institutions of higher education; 240 and (E) serve as chairperson of the Contracting Standards Advisory 241 Council and an ex-officio member of the Vendor and Citizen Advisory 242 Panel. 243 (h) The board may contract with consultants and professionals on a 244 temporary or project by project basis and [may] shall employ, subject to 245 the provisions of chapter 67, [such] not less than five full-time 246 employees and may employ such additional employees as may be 247 necessary to carry out the provisions of this section. 248 Sec. 5. Section 4e-3 of the general statutes is repealed and the 249 following is substituted in lieu thereof (Effective July 1, 2022): 250 (a) All rights, powers, duties and authority relating to the 251 procurement policies of the state, vested in, or exercised by, any [state] 252 contracting agency may also be exercised by the board, provided such 253 rights, powers, duties and authority may be exercised by the board as 254 provided in this section and sections 4e-4 to 4e-47, inclusive, as amended 255 by this act, and absent any affirmative action by the board, pursuant to 256 said sections, shall not be deemed to limit or restrict the exercise of such 257 rights, powers, duties and authority by any such [state] contracting 258 agency. Such rights, powers, duties and authority shall include the 259 following: 260 (1) Acquisition of supplies, services, and construction, and the 261 management, control, warehousing, sale, and disposal of supplies, 262 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 10 of 60 services, and construction; 263 (2) Any state or quasi-public agency contracting and procurement 264 processes, including, but not limited to, leasing and property transfers, 265 purchasing or leasing of supplies, materials or equipment, consultant or 266 consultant services, purchase of service agreements or privatization 267 contracts; and 268 (3) Contracts for the construction, reconstruction, alteration, 269 remodeling, repair or demolition of any public building. 270 (b) Notwithstanding any provision of chapter 14, upon request by the 271 board, each [state] contracting agency, including institutions of higher 272 education, shall provide the board, in a timely manner, with such 273 procurement information as the board deems necessary. The board shall 274 have access to all information, files and records related to any [state] 275 contracting agency in furtherance of the board's duties, as described in 276 this section and sections 4e-4 to 4e-47, inclusive, as amended by this act. 277 Nothing in this section shall be construed to require the board's 278 disclosure of documents that are exempt from disclosure pursuant to 279 chapter 14. 280 Sec. 6. Section 4e-4 of the general statutes is repealed and the 281 following is substituted in lieu thereof (Effective July 1, 2022): 282 Except as otherwise provided in the general statutes, the board shall 283 have the following authority and responsibilities with respect to 284 procurements by [state] contracting agencies: 285 [(a)] (1) Recommend the repeal of repetitive, conflicting or obsolete 286 statutes concerning [state] procurement; 287 [(b)] (2) Review and make recommendations concerning proposed 288 legislation and regulations concerning procurement, management, 289 control, and disposal of any and all supplies, services, and construction 290 to be procured by [the state] contracting agencies, including, but not 291 limited to: 292 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 11 of 60 [(1)] (A) Conditions and procedures for delegation of procurement 293 authority; 294 [(2)] (B) Prequalification, suspension, debarment and reinstatement 295 of prospective bidders and contractors; 296 [(3)] (C) Small purchase procedures; 297 [(4)] (D) Conditions and procedures for the procurement of 298 perishables and items for resale; 299 [(5)] (E) Conditions and procedures for the use of source selection 300 methods authorized by statutes and regulations concerning 301 procurement; 302 [(6)] (F) Conditions and procedures for the use of emergency 303 procurements; 304 [(7)] (G) Conditions and procedures for the selection of contractors by 305 processes or methods that restrict full and open competition; 306 [(8)] (H) The opening or rejection of bids and offers, and waiver of 307 errors in bids and offers; 308 [(9)] (I) Confidentiality of technical data and trade secrets submitted 309 by actual or prospective bidders; 310 [(10)] (J) Partial, progressive and multiple awards; 311 [(11)] (K) Supervision of storerooms and inventories, including 312 determination of appropriate stock levels and the management, 313 transfer, sale or other disposal of publicly-owned supplies; 314 [(12)] (L) Definitions and classes of contractual services and 315 procedures for acquiring such services; 316 [(13)] (M) Regulations providing for conducting cost and price 317 analysis; 318 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 12 of 60 [(14)] (N) Use of payment and performance bonds; 319 [(15)] (O) Guidelines for use of cost principles in negotiations, 320 adjustments and settlements; and 321 [(16)] (P) Identification of procurement best practices; 322 [(c)] (3) Adopt regulations, pursuant to chapter 54, to carry out the 323 provisions of statutes concerning procurement, in order to facilitate 324 consistent application of the law and require the implementation of 325 procurement best practices; 326 [(d)] (4) Make recommendations with regard to information systems 327 for state procurement including, but not limited to, data element and 328 design and the State Contracting Portal; 329 [(e)] (5) Develop a guide to state statutes and regulations concerning 330 procurement, for use by all [state] contracting agencies; 331 [(f)] (6) Assist [state] contracting agencies in complying with the 332 statutes and regulations concerning procurement by providing 333 guidance, models, advice and practical assistance to [state] contracting 334 agency staff relating to: [(1)] (A) Buying the best service at the best price, 335 [(2)] (B) properly selecting contractors, and [(3)] (C) drafting contracts 336 that achieve state goals of accountability, transparency and results 337 based outcomes and to protect taxpayers' interest; 338 [(g)] (7) Train and oversee the agency procurement officer of each 339 [state] contracting agency and any contracting officers thereunder; 340 [(h)] (8) Review and certify, on or after January 1, 2009, that a [state] 341 contracting agency's procurement processes are in compliance with 342 statutes and regulations concerning procurement by: 343 [(1)] (A) Establishing procurement and project management 344 education and training criteria and certification procedures for agency 345 procurement officers and contracting officers. All agency procurement 346 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 13 of 60 officers and contracting officers designated under this provision shall be 347 required to maintain the certification in good standing at all times while 348 performing procurement functions; 349 [(2)] (B) Approving an ethics training course, in consultation with the 350 Office of State Ethics, including, but not limited to, state employees and 351 quasi-public agency employees involved in procurement and for state 352 contractors and substantial subcontractors who are prequalified 353 pursuant to chapter 58a. Such ethics training course may be developed 354 and provided by the Office of State Ethics or by any person, firm or 355 corporation provided such course is approved by the State Contracting 356 Standards Board; 357 [(i)] (9) Recertify each [state] contracting agency's procurement 358 processes, triennially, and provide agencies with notice of any 359 certification deficiency and exercise those powers authorized by section 360 4e-34, as amended by this act, 4e-39, as amended by this act, or 4e-40, as 361 amended by this act, as applicable, if a determination of noncompliance 362 is made; 363 [(j)] (10) Define the contract data reporting requirements to the board 364 for [state] contracting agencies concerning information on: [(1)] (A) The 365 number and type of [state] contracts of each [state] contracting agency 366 currently in effect state-wide; [(2)] (B) the term and dollar value of such 367 contracts; [(3)] (C) a list of client agencies; [(4)] (D) a description of 368 services purchased under such contracts; [(5)] (E) contractor names; [(6)] 369 (F) an evaluation of contractor performance, including, but not limited 370 to records pertaining to the suspension or disqualification of 371 contractors, and assuring such information is available on the State 372 Contracting Portal; and [(7)] (G) a list of contracts and contractors 373 awarded without full and open competition stating the reasons for and 374 identifying the approving authority; and 375 [(k)] (11) Provide the Governor and the joint standing committee of 376 the General Assembly having cognizance of matters relating to 377 government administration with recommendations concerning the 378 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 14 of 60 statutes and regulations concerning procurement. 379 Sec. 7. Subsections (a) to (c), inclusive, of section 4e-5 of the general 380 statutes are repealed and the following is substituted in lieu thereof 381 (Effective July 1, 2022): 382 (a) (1) The head of each [state] contracting agency shall appoint an 383 agency procurement officer. Such officer shall serve as the liaison 384 between the agency and the Chief Procurement Officer on all matters 385 relating to the agency's procurement activity, including, but not limited 386 to, implementation and compliance with the provisions of statutes and 387 regulations concerning procurement and any policies or regulations 388 adopted by the board, coordination of the training and education of 389 agency procurement employees and any person serving on the 390 Contracting Standards Advisory Council; 391 (2) The agency procurement officer shall be responsible for (A) 392 ensuring that any invitation to bid, request for proposals or any other 393 solicitation for goods and service issued on or after July 1, 2022, contains 394 a notice of the rights of prospective bidders, proposers or prospective 395 contractors under sections 4e-36, 4e-39, as amended by this act, and 4e 396 40, as amended by this act, (B) assuring that contractors are properly 397 screened prior to the award of a contract, (C) ensuring contractors are 398 advised of their rights under sections 4e-36, 4e-39, as amended by this 399 act, and 4e-40, as amended by this act, prior to entering into a contract 400 on or after July 1, 2022, (D) ensuring that upon the award of such a 401 contract that unsuccessful bidders, proposers or respondents are 402 advised of their rights under sections 4e-36, 4e-39, as amended by this 403 act, and 4e-40, as amended by this act, (E) evaluating contractor 404 performance during and at the conclusion of a contract, (F) submitting 405 written evaluations to a central data repository to be designated by the 406 board, and (G) creating a project management plan for the agency with 407 annual reports to the board pertaining to procurement projects within 408 the agency. 409 (b) The State Contracting Standards Board, with the advice and 410 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 15 of 60 assistance of the Commissioner of Administrative Services, shall 411 develop a standardized state procurement and project management 412 education and training program. Such education and training program 413 shall develop education, training and professional development 414 opportunities for employees of [state] contracting agencies charged with 415 procurement responsibilities. The education and training program shall 416 educate such employees in general business acumen and on proper 417 purchasing procedures as established in statutes and regulations 418 concerning procurement with an emphasis on ethics, fairness, 419 consistency and project management. Participation in the education and 420 training program shall be required of any supervisory and 421 nonsupervisory [state] employees in [state] contracting agencies with 422 responsibility for buying, purchasing, renting, leasing or otherwise 423 acquiring any supplies, service or construction, including the 424 preparation of the description of requirements, selection and solicitation 425 of sources, preparation and award of contracts and all phases of contract 426 administration. 427 (c) The state procurement and project management education and 428 training program shall include, but shall not be limited to (1) training 429 and education concerning federal, state and municipal procurement 430 processes, including the statutes and regulations concerning 431 procurement; (2) training and education courses developed in 432 cooperation with the Office of State Ethics, the Freedom of Information 433 Commission, the State Elections Enforcement Commission, the 434 Commission on Human Rights and Opportunities, the office of the 435 Attorney General and any other state agency the board determines is 436 necessary in carrying out statutes and regulations concerning 437 procurement; (3) providing technical assistance to [state] contracting 438 agencies and municipalities for implementing statutes and regulations 439 concerning procurement, regulations, policies and standards developed 440 by the board; (4) training to current and prospective contractors and 441 vendors and others seeking to do business with [the state] a contracting 442 agency; and (5) training and education of [state] contracting agency 443 employees in the area of best procurement practices in [state] 444 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 16 of 60 purchasing with the goal of achieving the level of acumen necessary to 445 achieve the objectives of statutes and regulations concerning 446 procurement. 447 Sec. 8. Section 4e-6 of the general statutes is repealed and the 448 following is substituted in lieu thereof (Effective July 1, 2022): 449 (a) The board shall conduct audits of [state] contracting agencies, 450 triennially, to ensure compliance with statutes and regulations 451 concerning procurement. In conducting each such audit, the board shall 452 have access to all contracting and procurement records, may interview 453 any and all personnel responsible for contracting, contract negotiations 454 or procurement and may enter into an agreement with the Auditors of 455 Public Accounts to effectuate such audit. 456 (b) Upon completion of any such audit, the board shall prepare and 457 issue a compliance report for the [state] contracting agency. Such report 458 shall identify any process or procedure that is inconsistent with statutes 459 and regulations concerning procurement and indicate those corrective 460 measures the board deems necessary to comply with statutes and 461 regulations concerning procurement requirements. Such report shall be 462 issued and delivered to the [state] contracting agency not later than 463 thirty days after completion of such audit and shall be a public record. 464 The [state] contracting agency may provide a written response to the 465 board concerning such report not later than sixty days after receipt of 466 such report and any such response shall be a public record. After 467 receiving such response or after such sixty-day period has elapsed with 468 no response, whichever is earlier, the board may submit such report and 469 the response, if applicable, in accordance with the provisions of section 470 11-4a, to the joint standing committees of the General Assembly having 471 cognizance of matters relating to the [state] contracting agency that is 472 the subject of such report, appropriations and the budgets of state 473 agencies and government administration. 474 Sec. 9. Section 4e-7 of the general statutes is repealed and the 475 following is substituted in lieu thereof (Effective July 1, 2022): 476 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 17 of 60 (a) For cause, the State Contracting Standards Board may review, 477 terminate or recommend to a [state] contracting agency the termination 478 of any contract or procurement agreement undertaken by any [state] 479 contracting agency after providing fifteen days' notice to the [state] 480 contracting agency and the applicable contractor, and consulting with 481 the Attorney General. Such termination of a contract or procurement 482 agreement by the board may occur only after (1) the board has consulted 483 with the contracting agency to determine the impact of an immediate 484 termination of the contract, (2) a determination has been made jointly 485 by the board and the contracting agency that an immediate termination 486 of the contract will not create imminent peril to the public health, safety 487 or welfare, (3) a vote of two-thirds of the members of the board present 488 and voting for that purpose, and (4) the board has provided the [state] 489 contracting agency and the contractor with opportunity for a hearing 490 conducted pursuant to the provisions of chapter 54. Such action shall be 491 accompanied by notice to the [state] contracting agency and any other 492 affected party. For the purpose of this section, "for cause" means: (A) A 493 violation of section 1-84 or 1-86e, as determined by the Citizen's Ethics 494 Advisory Board; (B) wanton or reckless disregard of any state or quasi-495 public contracting and procurement process by any person substantially 496 involved in such contract or [state] contracting agency; or (C) 497 notification from the Attorney General to the [state] contracting agency 498 that an investigation pursuant to section 4-61dd has concluded that the 499 process by which such contract was awarded was compromised by 500 fraud, collusion or any other criminal violation. Nothing in this section 501 shall be construed to limit the authority of the board as described in 502 section 4e-6, as amended by this act. 503 (b) Following consultation with the [state] contracting agency and 504 upon providing fifteen days' notice and the opportunity for a hearing, 505 the State Contracting Standards Board may restrict or terminate the 506 authority of any [state] contracting agency to enter into any contract or 507 procurement agreement if: (1) The board, upon a vote of two-thirds of 508 the members of the board present and voting for such purpose, 509 determines that such [state] contracting agency failed to comply with 510 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 18 of 60 statutory contracting and procurement requirements and evidenced a 511 reckless disregard for applicable procedures and policy; and (2) such 512 limitation, restriction or termination of authority is in the state's best 513 interest, provided the board has made arrangements for the exercise of 514 the contracting power of such agency during the period of limitation, 515 restriction or termination. Such limitation, restriction or termination of 516 authority shall remain in effect until such time as the board determines 517 that such [state] contracting agency has implemented corrective 518 measures and demonstrated compliance with statutes and regulations 519 concerning procurement. 520 (c) Following consultation with the [state] contracting agency, and 521 thereafter upon providing fifteen days' notice and the opportunity for a 522 hearing, the State Contracting Standards Board may order a [state] 523 contracting agency to take appropriate action to restrict or terminate the 524 authority of an employee or agent to enter into any contract or 525 procurement agreement if the board, upon a vote of two-thirds of the 526 members of the board present and voting for such purpose, determines 527 that such employee or agent failed to comply with statutory contracting 528 and procurement requirements, and evidenced a reckless disregard for 529 applicable procedures and policy. Such limitation, restriction or 530 termination of authority shall remain in effect until such time as the 531 board determines that such [state] contracting agency has implemented 532 corrective measures and demonstrated compliance with statutes and 533 regulations concerning procurement. 534 Sec. 10. Section 4e-8 of the general statutes is repealed and the 535 following is substituted in lieu thereof (Effective July 1, 2022): 536 There is established a Contracting Standards Advisory Council, 537 which shall consist of representatives from the Office of Policy and 538 Management, Departments of Administrative Services and 539 Transportation, [and] representatives of at least three additional 540 contracting agencies, including at least one human services related state 541 agency, to be designated by the Governor and at least four additional 542 contracting agencies that are quasi-public agencies, two of which are 543 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 19 of 60 appointed by the speaker of the House of Representatives and two of 544 which are appointed by the president pro tempore of the Senate. The 545 Chief Procurement Officer shall be a member of the council and serve as 546 chairperson. The advisory council shall meet at least four times per year 547 to discuss [state] procurement issues and to make recommendations for 548 improvement of the procurement processes to the State Contracting 549 Standards Board. The advisory council may conduct studies, research 550 and analyses and make reports and recommendations with respect to 551 subjects or matters within the jurisdiction of the State Contracting 552 Standards Board. 553 Sec. 11. Section 4e-10 of the general statutes is repealed and the 554 following is substituted in lieu thereof (Effective July 1, 2022): 555 (a) On or before July 1, 2010, the board shall submit to the Governor 556 and the General Assembly such legislation as is necessary to permit 557 [state] contracting agencies, not including [quasi-publics] quasi-public 558 agencies, institutions of higher education, and municipal procurement 559 processes utilizing state funds, to carry out their functions under 560 statutes and regulations concerning procurement. 561 (b) On or before July 1, 2011, the board shall submit to the Governor 562 and the General Assembly such legislation as is necessary to apply the 563 provisions of statutes concerning procurement to constituent units of 564 the state system of higher education. Concomitantly, the board shall 565 submit such additional legislation as is necessary to apply the 566 provisions of statutes and regulations concerning privatization and 567 procurement to quasi-public agencies. 568 (c) On or before July 1, 2012, the board shall submit to the Governor 569 and the General Assembly such legislation as is necessary to apply the 570 provisions of statutes and regulations concerning procurement to the 571 municipal procurement processes utilizing state funds. 572 Sec. 12. Section 4e-14 of the general statutes is repealed and the 573 following is substituted in lieu thereof (Effective July 1, 2022): 574 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 20 of 60 On and after June 1, 2010, all [state] contracts of each [state] 575 contracting agency of the state, as defined in section 4e-35, as amended 576 by this act, that take effect on or after June 1, 2010, shall contain 577 provisions to ensure accountability, transparency and results based 578 outcomes, as prescribed by the State Contracting Standards Board and 579 on or after July 1, 2022, all contracts of each contracting agency that is a 580 quasi-public agency that take effect on or after July 1, 2022, shall contain 581 such provisions. On and after June 1, 2010, all [state] contracts of the 582 legislative branch and the judicial branch that take effect on or after June 583 1, 2010, shall contain provisions to ensure accountability, transparency 584 and results based outcomes. 585 Sec. 13. Section 4e-16 of the general statutes is repealed and the 586 following is substituted in lieu thereof (Effective July 1, 2022): 587 (a) Prior to entering into any privatization contract for the 588 privatization of a state service that is not currently privatized, the [state] 589 contracting agency shall develop a cost-benefit analysis in accordance 590 with the provisions of subsection (b) of this section. Such requirement 591 shall not apply to a privatization contract for a service currently 592 provided, in whole or in part, by a non-state entity. Any affected party 593 may petition the State Contracting Standards Board for review of such 594 privatization contract, in accordance with the provisions of subsections 595 (f) to (h), inclusive, of this section. 596 (b) The cost-benefit analysis conducted by a [state] contracting 597 agency prior to entering into a privatization contract shall document the 598 direct and indirect costs, savings, and qualitative and quantitative 599 benefits, that will result from the implementation of such privatization 600 contract. Such cost-benefit analysis shall specify the schedule that, at a 601 minimum, shall be adhered to in order to achieve any estimated savings. 602 Any cost factor shall be clearly identified in such cost-benefit analysis 603 and supported by all applicable records and reports. The department 604 head of such [state] contracting agency shall certify that, based on the 605 data and information, all projected costs, savings and benefits are valid 606 and achievable. As used in this subsection, (1) "costs" means all 607 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 21 of 60 reasonable, relevant and verifiable expenses, including salary, 608 materials, supplies, services, equipment, capital depreciation, rent, 609 maintenance, repairs, utilities, insurance, travel, overhead, interim and 610 final payments and the normal cost of fringe benefits, as calculated by 611 the Comptroller; (2) "normal cost of fringe benefits" means the amount 612 of contributions required to fund the fringe benefits allocated to the 613 current year of service; and (3) "savings" means the difference between 614 the current annual direct and indirect costs of providing such service 615 and the projected, annual direct and indirect costs of contracting to 616 provide such services in any succeeding state fiscal year during the term 617 of such proposed privatization contract. 618 (c) (1) If such cost-benefit analysis identifies a cost savings to the state 619 or the quasi-public agency of ten per cent or more, and such 620 privatization contract will not diminish the quality of such service, the 621 [state] contracting agency shall develop a business case, in accordance 622 with the provisions of subsection (d) of this section, in order to evaluate 623 the feasibility of entering into any such contract and to identify the 624 potential results, effectiveness and efficiency of such contract. 625 (2) If such cost-benefit analysis identifies a cost savings of less than 626 ten per cent to the state or the quasi-public agency and such 627 privatization contract will not diminish the quality of such service, the 628 [state] contracting agency may develop a business case, in accordance 629 with the provisions of subsection (d) of this section, in order to evaluate 630 the feasibility of entering into any such contract and to identify the 631 potential results, effectiveness and efficiency of such contract, provided 632 there is a significant public policy reason to enter into such privatization 633 contract. Any such business case shall be approved in accordance with 634 the provisions of subdivision (4) of subsection (h) of this section. 635 (3) If any such proposed privatization contract would result in the 636 layoff, transfer or reassignment of one hundred or more [state] 637 contracting agency employees, after consulting with the potentially 638 affected bargaining units, if any, the [state] contracting agency shall 639 notify the state employees or quasi-public agency employees of such 640 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 22 of 60 bargaining unit, as applicable, after such cost-benefit analysis is 641 completed. Such [state] contracting agency shall provide an opportunity 642 for [said] such employees to reduce the costs of conducting the 643 operations to be privatized and provide reasonable resources for the 644 purpose of encouraging and assisting such [state] employees to organize 645 and submit a bid to provide the services that are the subject of the 646 potential privatization contract. The [state] contracting agency shall 647 retain sole discretion in determining whether to proceed with the 648 privatization contract, provided the business case for such contract is 649 approved by the board. 650 (d) Any business case developed by a [state] contracting agency for 651 the purpose of complying with subsection (c) of this section shall 652 include: (1) The cost-benefit analysis as described in subsection (b) of 653 this section, (2) a detailed description of the service or activity that is the 654 subject of such business case, (3) a description and analysis of [the state] 655 such contracting agency's current performance of such service or 656 activity, (4) the goals to be achieved through the proposed privatization 657 contract and the rationale for such goals, (5) a description of available 658 options for achieving such goals, (6) an analysis of the advantages and 659 disadvantages of each option, including, at a minimum, potential 660 performance improvements and risks attendant to termination of the 661 contract or rescission of such contract, (7) an analysis of the potential 662 impact of the proposed privatization contract on workers of color and 663 workers who are women, including whether such privatization contract 664 will lessen or increase historical patterns that produce inequities 665 between such workers and other workers, (8) a description of the 666 current market for the services or activities that are the subject of such 667 business case, [(8)] (9) an analysis of the quality of services as gauged by 668 standardized measures and key performance requirements including 669 compensation, turnover, and staffing ratios, [(9)] (10) a description of 670 the specific results-based performance standards that shall, at a 671 minimum be met, to ensure adequate performance by any party 672 performing such service or activity, [(10)] (11) the projected time frame 673 for key events from the beginning of the procurement process through 674 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 23 of 60 the expiration of a contract, if applicable, [(11)] (12) a specific and 675 feasible contingency plan that addresses contractor nonperformance 676 and a description of the tasks involved in and costs required for 677 implementation of such plan, and [(12)] (13) a transition plan, if 678 appropriate, for addressing changes in the number of agency personnel, 679 affected business processes, employee transition issues, and 680 communications with affected stakeholders, such as agency clients and 681 members of the public, if applicable. Such transition plan shall contain 682 a reemployment and retraining assistance plan for employees who are 683 not retained by the state or a quasi-public agency or employed by the 684 contractor. If the primary purpose of the proposed privatization 685 contract is to provide a core governmental function, such business case 686 shall also include information sufficient to rebut the presumption that 687 such core governmental function should not be privatized. Such 688 presumption shall not be construed to prohibit a [state] contracting 689 agency from contracting for specialized technical expertise not available 690 within such contracting agency, provided such contracting agency shall 691 retain responsibility for such core governmental function. For the 692 purposes of this section, "core governmental function" means a function 693 for which the primary purpose is (A) the inspection for adherence to 694 health and safety standards because public health or safety may be 695 jeopardized if such inspection is not done or is not done in a timely or 696 proper manner, (B) the establishment of statutory, regulatory or 697 contractual standards to which a regulated person, entity or [state] 698 contractor shall be held, (C) the enforcement of statutory, regulatory or 699 contractual requirements governing public health or safety, [or] (D) 700 criminal or civil law enforcement, or (E) the provision of essential 701 human services to residents of the state who would otherwise lack the 702 support necessary to assure basic human needs. If any part of such 703 business case is based upon evidence that the [state] contracting agency 704 is not sufficiently staffed to provide the core governmental function 705 required by the privatization contract, the [state] contracting agency 706 shall also include within such business case a plan for remediation of 707 the understaffing to allow such services to be provided directly by the 708 [state] contracting agency in the future. 709 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 24 of 60 (e) Upon the completion of such business case, the [state] contracting 710 agency shall submit the business case to the State Contracting Standards 711 Board. For any privatization contract with a projected cost that exceeds 712 one hundred fifty million dollars annually or six hundred million 713 dollars over the life of such contract, the [state] contracting agency shall 714 also submit such business case to the Governor, the president pro 715 tempore of the Senate, the speaker of the House of Representatives, and 716 any collective bargaining unit affected by the proposed privatization 717 contract. 718 (f) (1) There shall be a privatization contract committee of the State 719 Contracting Standards Board that shall review, evaluate, issue advisory 720 reports and make recommendations on business cases submitted to the 721 board by any [state] contracting agency. Such privatization contract 722 committee shall consist of five members of the State Contracting 723 Standards Board. Such members shall be appointed by the chairperson 724 of the board and consist of both gubernatorial and legislative 725 appointments, have not more than three members from any one political 726 party, and at least one member of such committee shall have expertise 727 in the area that is the subject of such proposed contract. The chairperson 728 of the board, or the chairperson's designee, shall serve as the chair of the 729 privatization contract committee. 730 (2) Upon receipt of any such business case from a [state] contracting 731 agency, the State Contracting Standards Board shall immediately refer 732 such business case to such privatization contract committee. The 733 privatization contract committee shall employ a standard process for 734 reviewing, evaluating and approving any such business cases. Such 735 process shall include due consideration of: (A) The cost-benefit analysis 736 developed by the [state] contracting agency, (B) the business case 737 developed by the [state] contracting agency, including any facts, 738 documents or other materials that are relevant to such business case, (C) 739 any adverse effect that such privatization contract may have on 740 minority, small and women-owned businesses that do, or are 741 attempting to do, business with the state, and (D) the value of having 742 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 25 of 60 services performed in the state and within the United States. 743 (3) The privatization committee shall evaluate the business case and 744 submit the committee's evaluation to the State Contracting Standards 745 Board for review and approval. During the review or consideration of 746 any such business case, no member of the board shall engage in any ex-747 parte communication with any lobbyist, contractor or union 748 representative. Unless otherwise provided in this section, a majority 749 vote of the board shall be required to approve any such business case. 750 (4) The business case for a privatization contract to provide a core 751 governmental function may be approved by a two-thirds vote of the 752 board, provided the [state] contracting agency has provided sufficient 753 evidence to rebut the presumption contained in subsection (d) of this 754 section and there is a significant policy reason to approve such business 755 case. In no such case shall the insufficient staffing of a [state] contracting 756 agency constitute a significant policy reason to approve a business case 757 for a privatization contract to provide a core governmental function. 758 (g) Each [state] contracting agency that submits a business case to the 759 board for review shall submit to the board all information, documents 760 or other material required by the privatization contract committee to 761 complete its review and evaluation of such business case. 762 (h) (1) Not later than sixty days after receipt of any business case, the 763 State Contracting Standards Board shall transmit a report detailing its 764 review, evaluation and disposition regarding such business case to the 765 [state] contracting agency that submitted such business case and, in the 766 case of a privatization contract with a projected cost of one hundred fifty 767 million dollars or more annually, or six hundred million dollars or more 768 over the life of the contract, concomitantly transmit such report to the 769 Governor, the president pro tempore of the Senate, the speaker of the 770 House of Representatives and any collective bargaining unit affected by 771 the proposed privatization contract. Such sixty-day period may be 772 extended for an additional thirty days upon a majority vote of the board 773 or the privatization contract committee and for good cause shown. 774 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 26 of 60 (2) The board's report shall include the business case prepared by the 775 [state] contracting agency, the evaluation of the business case prepared 776 by the privatization contract committee, the reasons for approval or 777 disapproval, any recommendations of the board and sufficient 778 information to assist the [state] contracting agency in determining if 779 additional steps are necessary to move forward with a privatization 780 contract. 781 (3) If the State Contracting Standards Board does not act on a business 782 case submitted by a [state] contracting agency within sixty days of 783 receipt of such business case, such business case shall be deemed 784 approved, except that no business case may be approved for failure of 785 the board to meet. 786 (4) In the case of a business case developed pursuant to subdivision 787 (2) of subsection (c) of this section, a two-thirds vote of the board shall 788 be required for approval of such privatization contract. 789 (5) Any [state] contracting agency may request an expedited review 790 of a business case submitted to the board if there is a compelling public 791 interest for such expedited review. If the board approves the agency's 792 request for such an expedited review, such review shall be completed 793 not later than thirty days after receipt of such request. If the board fails 794 to complete an expedited review within thirty days of receipt of a 795 request that was approved by the board, such business case shall be 796 deemed to be approved. 797 (i) A [state] contracting agency may publish notice soliciting bids for 798 a privatization contract only after the board approves such business 799 case, provided any privatization contract that is estimated to cost in 800 excess of one hundred fifty million dollars annually or six hundred 801 million dollars or more over the life of the contract shall also be 802 approved by the General Assembly prior to the [state] contracting 803 agency soliciting bids for such contract. The General Assembly may 804 approve any such contract as a whole by a majority vote of each house 805 or may reject such agreement as a whole by a majority vote of either 806 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 27 of 60 house. If the General Assembly is in session, it shall vote to approve or 807 reject such contract not later than thirty days after such [state] 808 contracting agency files such contract with the General Assembly. If the 809 General Assembly is not in session when such contract is filed, it shall 810 be submitted to the General Assembly not later than ten days after the 811 first day of the next regular session or special session called for such 812 purpose. The contract shall be deemed approved if the General 813 Assembly fails to vote to approve or reject such contract within thirty 814 days after such filing. Such thirty-day period shall not begin or expire 815 unless the General Assembly is in regular session. For the purpose of 816 this subsection, any contract filed with the clerks within thirty days 817 before the commencement of a regular session of the General Assembly 818 shall be deemed to be filed on the first day of such session. 819 (j) Each [state] contracting agency shall submit, in writing, to the State 820 Contracting Standards Board, any proposed amendment to a board-821 approved business case in order that the board may review and approve 822 of such proposed amendment. The board may approve or disapprove 823 of any such proposed amendment not later than thirty days after receipt 824 of such proposed amendment by the same vote that was required for 825 approval of the original business case. If the board fails to complete its 826 review within thirty days of receipt of such proposed amendment, such 827 amendment shall be deemed approved. 828 (k) Not later than thirty days after a decision of the board to approve 829 a business case, any collective bargaining agent of any employee 830 adversely affected by such proposed privatization contract may file a 831 motion for an order to show cause in the superior court for the judicial 832 district of Hartford on the grounds that such contract fails to comply 833 with the substantive or procedural requirements of this section. A ruling 834 on any such motion may: (1) Deny the motion; (2) grant the motion if 835 the court finds that the proposed contract would substantively violate 836 the provisions of this section; or (3) stay the effective date of the contract 837 until any substantive or procedural defect found by the court has been 838 corrected. 839 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 28 of 60 (l) (1) The board may review additional existing privatization 840 contracts and shall review not less than one contracting area each year 841 that is currently privatized. During the review of any such privatization 842 contract, no member of the board shall engage in any ex-parte 843 communication with any lobbyist, contractor or union representative. 844 For each such privatization contract selected for review by the board, 845 the appropriate [state] contracting agency shall develop a cost-benefit 846 analysis in accordance with subsection (b) of this section. In addition, 847 any affected party may petition the board for review of any existing 848 privatization contract, in accordance with the provisions of subsections 849 (f) to (h), inclusive, of this section. 850 (2) If such cost-benefit analysis identifies a ten per cent or more cost 851 savings to the state from the use of such privatization contract and such 852 contract does not diminish the quality of the service provided, such 853 [state] contracting agency shall develop a business case for the renewal 854 of such privatization contract in accordance with the provisions of 855 subsections (d) and (e) of this section. The board shall review such 856 contract in accordance with the provisions of subsections (f) to (h), 857 inclusive, of this section and may approve such renewal by the 858 applicable vote of the board, provided any such renewal that is 859 estimated to cost in excess of one hundred fifty million dollars annually 860 or six hundred million dollars or more over the life of the contract shall 861 also be approved by the General Assembly prior to the [state] 862 contracting agency renewing such contract. If such renewal is approved 863 by the board and the General Assembly, if applicable, the provisions of 864 subsection (j) of this section shall apply to any proposed amendment to 865 such contract. 866 (3) If such cost-benefit analysis identifies a cost savings to the state of 867 less than ten per cent, such [state] contracting agency shall prepare a 868 plan to have such service provided by state employees, or in the case of 869 a contracting agency that is a quasi-public agency, the employees of 870 such quasi-public agency, and shall begin to implement such plan, 871 provided: (A) While such plan is prepared, but prior to implementation 872 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 29 of 60 of such plan, such [state] contracting agency may develop a business 873 case for such privatization contract, in accordance with the provisions 874 of subsection (d) of this section, that achieves a cost savings to the state 875 of ten per cent or more. Any such business case shall be reviewed by the 876 board in accordance with the provisions of subsections (f) to (h), 877 inclusive, of this section, and may be approved by the applicable vote of 878 the board; (B) such privatization contract shall not be renewed with the 879 vendor currently providing such service unless: (i) There exists a 880 significant public interest in renewing such contract, and (ii) such 881 renewal is approved by a two-thirds vote of the board; (C) the [state] 882 contracting agency may enter into a contract with a term of one year or 883 less for the provision of such service until such [state] contracting 884 agency implements such plan; and (D) the procedure for the transfer of 885 funds from the General Fund, as described in section 4-94, may be 886 utilized to allocate necessary resources for the implementation of the 887 provisions of this subdivision. 888 (4) Notwithstanding the provisions of subdivision (3) of this 889 subsection, the renewal of a privatization contract with a nonprofit 890 organization shall not be denied if the cost of increasing compensation 891 to employees performing the privatized service is the sole cause for such 892 contract not achieving a cost savings to the state of ten per cent or more. 893 (m) The Office of Policy and Management, in consultation with the 894 State Contracting Standards Board, shall: (1) Develop policies and 895 procedures, including templates for use by [state] contracting agencies 896 for the development of a cost-benefit analysis, as described in subsection 897 (b) of this section, and (2) review with each [state] contracting agency 898 the budgetary impact of any such privatization contract and the need to 899 request budget adjustments in connection with any such privatization 900 contract. 901 (n) The State Contracting Standards Board, in consultation with the 902 Department of Administrative Services, shall: (1) Recommend and 903 implement standards and procedures for [state] contracting agencies to 904 develop business cases in connection with privatization contracts, 905 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 30 of 60 including templates for use by [state] such contracting agencies when 906 submitting business cases to the board, and policies and procedures to 907 guide [state] such contracting agencies to complete such business cases, 908 and (2) develop guidelines and procedures for assisting state employees 909 or quasi-public agency employees whose jobs are affected by a 910 privatization contract. 911 (o) Notwithstanding the provisions of subsections (a) and (i) of this 912 section, a [state] contracting agency may enter into a privatization 913 contract without development of a cost-benefit analysis or approval of 914 a business case by the State Contracting Standards Board if (1) the [state] 915 contracting agency finds that a privatization contract is required (A) due 916 to an imminent peril to the public health, safety or welfare, and (B) the 917 agency states, in writing, its reasons for such finding; and (2) the 918 Governor approves such finding, in writing. 919 (p) Prior to entering into or renewing any privatization contract that 920 is not subject to the provisions of subsection (a) of this section, the [state] 921 contracting agency shall evaluate such contract to determine if entering 922 into or renewing such contract is the most cost-effective method of 923 delivering the service, by determining the costs, as defined in subsection 924 (b) of this section, of such service. The [state] contracting agency shall 925 perform such evaluation in accordance with a template prescribed by 926 the Secretary of the Office of Policy and Management and such 927 evaluation shall be subject to verification by the secretary. The secretary 928 may waive the requirement for an evaluation of cost-effectiveness under 929 this subsection upon a finding by the secretary that exigent or emergent 930 circumstances necessitate such waiver. 931 (q) Nothing in this section shall be construed to apply to 932 procurements that involve the expenditure of federal assistance or 933 federal contract funds, provided federal law provides applicable 934 procurement procedures that are inconsistent with the requirements of 935 this section. 936 Sec. 14. Section 4e-17 of the general statutes is repealed and the 937 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 31 of 60 following is substituted in lieu thereof (Effective July 1, 2022): 938 (a) Except as otherwise provided, the provisions of sections 4e-16 to 939 4e-47, inclusive, as amended by this act, shall apply to all contracts 940 solicited or entered into by [state contracting agencies] a contracting 941 agency that is a state agency on or after June 1, 2010, and all contracts 942 solicited or entered into by a contracting agency that is a quasi-public 943 agency on or after July 1, 2022. 944 (b) Except as otherwise provided, the provisions of sections 4e-16 to 945 4e-47, inclusive, as amended by this act, shall apply to every 946 expenditure of public funds by any [state] contracting agency, 947 irrespective of their source, involving any state or quasi-public agency 948 contracting and procurement processes, including, but not limited to, 949 leasing and property transfers, purchasing or leasing of supplies, 950 materials or equipment, consultant or consultant services, personal 951 service agreements, purchase of service agreements or privatization 952 contracts, as defined in section 4e-1, as amended by this act, and, 953 relating to contracts for the construction, reconstruction, alteration, 954 remodeling, repair or demolition of any public building, bridge or road. 955 (c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this 956 act, shall be construed to require the application of procurement statutes 957 or regulations to a procurement that involves the expenditure of federal 958 assistance or federal contract funds if federal law provides procurement 959 procedures applicable to the expenditure of such funds, to the extent 960 such federal procedures are inconsistent with state procurement 961 statutes or regulations. 962 Sec. 15. Section 4e-18 of the general statutes is repealed and the 963 following is substituted in lieu thereof (Effective July 1, 2022): 964 For the purpose of obtaining supplies, materials, equipment or 965 contractual services, except infrastructure facilities, the Commissioner 966 of Administrative Services shall establish a requisition system to be used 967 by [state] contracting agencies that are not quasi-public agencies to 968 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 32 of 60 initiate and authorize the procurement process. Such system shall be 969 approved by the State Contracting Standards Board. 970 Sec. 16. Section 4e-19 of the general statutes is repealed and the 971 following is substituted in lieu thereof (Effective July 1, 2022): 972 (a) All purchases of, and contracts for, supplies, materials, equipment 973 and contractual services by any [state] contracting agency, except 974 purchases and contracts made pursuant to the provisions of section 4e-975 23, shall be awarded by one of the following methods, unless otherwise 976 authorized by law: 977 (1) Competitive sealed bidding; 978 (2) Competitive sealed proposals; 979 (3) Small purchase procedure; 980 (4) Sole source procurement; 981 (5) Emergency procurements; or 982 (6) Waiver of bid or proposal requirement for extraordinary 983 conditions. 984 (b) Not later than June 1, 2010, the State Contracting Standards Board 985 shall adopt regulations, in accordance with the provisions of chapter 54, 986 to define each of the methods listed in subsection (a) of this section, 987 establish the circumstances in which each such method shall be used by 988 [state] contracting agencies, and establish the processes and criteria by 989 which purchases and contracts shall be awarded in accordance with 990 each such method. 991 Sec. 17. Section 4e-21 of the general statutes is repealed and the 992 following is substituted in lieu thereof (Effective July 1, 2022): 993 (a) Not later than January 1, 2010, the State Contracting Standards 994 Board, in consultation with the Department of Administrative Services, 995 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 33 of 60 shall adopt regulations to establish small purchase procedures for 996 procurements that do not exceed fifty thousand dollars. Such 997 regulations shall include a prohibition on the artificial division of a 998 procurement in order to make use of such small procurement 999 procedures. 1000 (b) The State Contracting Standards Board, in consultation with the 1001 Commissioner of Administrative Services, may determine that a [state] 1002 contracting agency has artificially divided procurement requirements so 1003 as to constitute a small purchase under this section and, upon such 1004 determination shall prohibit the [state] contracting agency from 1005 utilizing such small purchase procedures. 1006 (c) The State Contracting Standards Board, in consultation with the 1007 Commissioner of Administrative Services, may waive the requirement 1008 of competitive bidding or competitive negotiation in the case of minor, 1009 nonrecurring or emergency purchases of ten thousand dollars or less in 1010 amount, upon application of the contracting agency. Any contracting 1011 agency that obtains such a waiver for such an emergency purchase shall 1012 post notice of such emergency purchase on the Internet web site of the 1013 contracting agency prior to making such emergency purchase. 1014 Sec. 18. Section 4e-24 of the general statutes is repealed and the 1015 following is substituted in lieu thereof (Effective July 1, 2022): 1016 [Not later than June 1, 2010, the State Contracting Standards Board, 1017 in consultation with the Commissioner of Administrative Services and 1018 any other appropriate award authority, shall adopt regulations, in 1019 accordance with the provisions of chapter 54, permitting] (a) If an 1020 emergency [procurements when there exists] procurement is deemed 1021 necessary by a contracting agency due to a threat to public health, 1022 welfare or safety, the contracting agency shall give notice to the board 1023 of the need for such emergency procurement. Such emergency 1024 procurements shall be made with competition, as is practicable under 1025 the circumstances. [Said regulations shall require that] The contracting 1026 agency shall (1) include a written determination of the basis for the 1027 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 34 of 60 emergency and for the selection of the particular contractor [be 1028 included] in the contract file, [and transmitted] (2) transmit such 1029 determination to the Governor, the president pro tempore of the Senate, 1030 the majority and minority leaders of the Senate, the speaker of the House 1031 of Representatives and the majority and minority leaders of the House 1032 of Representatives, and (3) post such determination on the Internet web 1033 site of the contracting agency. 1034 (b) The State Contracting Standards Board may adopt regulations in 1035 accordance with the provisions of chapter 54 to implement the 1036 provisions of this section. 1037 Sec. 19. Subsection (d) of section 4b-51 of the general statutes is 1038 repealed and the following is substituted in lieu thereof (Effective July 1, 1039 2022): 1040 (d) (1) Notwithstanding any provision of the general statutes, the 1041 Commissioner of Administrative Services may select consultants to be 1042 on a list established for the purpose of providing any consultant 1043 services. Such list shall be established as provided in sections 4b-56 and 1044 4b-57, as amended by this act. [The] In the case of an emergency 1045 procurement due to a threat to public health, welfare or safety, the 1046 commissioner may enter into a contract with any consultant on such list 1047 without inviting responses from such consultants to perform a range of 1048 consultant services or to perform a range of tasks pursuant to a task 1049 letter detailing services to be performed under such contract. 1050 (2) Notwithstanding any provision of the general statutes, the 1051 Commissioner of Administrative Services may (A) compile a list of 1052 architects, professional engineers and construction administrators for 1053 the limited purpose of providing consultant services for a particular 1054 program involving various projects for the construction of new 1055 buildings or renovations to existing buildings where such buildings are 1056 under the operation and control of either the Military Department or the 1057 Department of Energy and Environmental Protection, and (B) in the case 1058 of an emergency procurement due to a threat to public health, welfare 1059 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 35 of 60 or safety, enter into a contract with any architect, professional engineer 1060 or construction administrator on such list for such limited purpose 1061 without inviting responses from the persons on such list, except that the 1062 Adjutant General may perform the functions described in 1063 subparagraphs (A) and (B) of this subdivision for any such building 1064 under the operation and control of the Military Department. 1065 (3) As used in this subsection, "consultant" means "consultant" as 1066 defined in section 4b-55, "consultant services" means "consultant 1067 services" as defined in section 4b-55, and "program" means multiple 1068 projects involving the planning, design, construction, repair, 1069 improvement or expansion of specified buildings, facilities or site 1070 improvements, wherein the work (A) will be of a repetitive nature, (B) 1071 will share a common funding source that imp oses particular 1072 requirements, or (C) would be significantly facilitated if completed by 1073 the same design professional or construction administrator. 1074 Sec. 20. Subsection (a) of section 4b-57 of the general statutes is 1075 repealed and the following is substituted in lieu thereof (Effective July 1, 1076 2022): 1077 (a) Whenever consultant services are required by the commissioner 1078 in fulfilling the responsibilities under section 4b-1, and in the case of 1079 each project, the commissioner shall invite responses from such firms by 1080 posting notice on the State Contracting Portal, except that in the case of 1081 an emergency procurement, the commissioner may receive consultant 1082 services under a contract entered into pursuant to subsection (d) of 1083 section 4b-51, as amended by this act. The commissioner shall prescribe, 1084 by regulations adopted in accordance with chapter 54, the advance 1085 notice required for, the manner of submission, and conditions and 1086 requirements of, such responses. 1087 Sec. 21. Subsection (g) of section 4b-91 of the 2022 supplement to the 1088 general statutes is repealed and the following is substituted in lieu 1089 thereof (Effective July 1, 2022): 1090 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 36 of 60 (g) Notwithstanding the provisions of this chapter regarding 1091 competitive bidding procedures, in the case of an emergency 1092 procurement due to a threat to public health, welfare or safety, the 1093 commissioner may select and interview at least three responsible and 1094 qualified general contractors who are prequalified pursuant to section 1095 4a-100 and submit the three selected contractors to the construction 1096 services award panels process described in section 4b-100a and any 1097 regulation adopted by the commissioner. The commissioner may 1098 negotiate with the successful bidder a contract which is both fair and 1099 reasonable to the state for a community court project, the downtown 1100 Hartford higher education center project, a correctional facility project, 1101 a juvenile residential center project, or a student residential facility for 1102 the Connecticut State University System that is a priority higher 1103 education facility project. The Commissioner of Administrative 1104 Services, prior to entering any such contract or performing any work on 1105 such project, shall submit such contract to the State Properties Review 1106 Board for review and approval or disapproval by the board, pursuant 1107 to subsection (i) of this section. Any general contractor awarded a 1108 contract pursuant to this subsection shall be subject to the same 1109 requirements concerning the furnishing of bonds as a contractor 1110 awarded a contract pursuant to subsection (b) of this section. 1111 Sec. 22. Section 4e-25 of the general statutes is repealed and the 1112 following is substituted in lieu thereof (Effective July 1, 2022): 1113 A [state] contracting agency may request factual information 1114 reasonably available to the bidder or proposer to substantiate that the 1115 price or cost offered, or some portion of it, is reasonable. 1116 Sec. 23. Section 4e-27 of the general statutes is repealed and the 1117 following is substituted in lieu thereof (Effective July 1, 2022): 1118 Not later than June 1, 2010, the State Contracting Standards Board, in 1119 consultation with the Attorney General, shall adopt regulations, in 1120 accordance with the provisions of chapter 54, specifying the types of 1121 contracts that may be used by [state] contracting agencies. Such 1122 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 37 of 60 regulations shall specify that a cost-reimbursement contract may be 1123 used only when a determination is made in writing by the agency 1124 procurement officer that such contract is likely to be less costly to the 1125 state or quasi-public agency than any other type or that it is 1126 impracticable to obtain the supplies, services or construction required 1127 except under such a contract. 1128 Sec. 24. Section 4e-28 of the general statutes is repealed and the 1129 following is substituted in lieu thereof (Effective July 1, 2022): 1130 Not later than June 1, 2010, the State Contracting Standards Board 1131 shall adopt regulations, in accordance with the provisions of chapter 54, 1132 requiring that contractors submit appropriate documentation to the 1133 appropriate [state] contracting agency, prior to the award of a contract, 1134 to confirm that the proposed contractor's accounting system will permit 1135 timely development of all necessary cost data in the form required by 1136 the specific contract type. 1137 Sec. 25. Section 4e-29 of the general statutes is repealed and the 1138 following is substituted in lieu thereof (Effective July 1, 2022): 1139 Each contract of a [state] contracting agency shall provide that [a 1140 state] such contracting agency may, at reasonable times, inspect the part 1141 of the plant or place of business of a contractor or any subcontractor 1142 which is related to the performance of any such contract awarded, or to 1143 be awarded by the [state] contracting agency, to ensure compliance with 1144 the contract. 1145 Sec. 26. Section 4e-30 of the 2022 supplement to the general statutes 1146 is repealed and the following is substituted in lieu thereof (Effective July 1147 1, 2022): 1148 (a) A [state] contracting agency may audit the books and records of a 1149 contractor or any subcontractor under any negotiated contract or 1150 subcontract to the extent that such books and records relate to the 1151 performance of such contract or subcontract. Such books and records 1152 shall be maintained by the contractor for a period of three years from 1153 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 38 of 60 the date of final payment under the prime contract and by the 1154 subcontractor for a period of three years from the expiration of the 1155 subcontract. 1156 (b) If a [state] contracting agency enters into an amendment to any 1157 negotiated contract or subcontract that extends the terms of such 1158 contract or subcontract, the amendment shall be deemed a new and 1159 separate negotiated contract for the purposes of this section. The books 1160 and records of a contractor or any subcontractor related to the 1161 performance of such amendment shall be maintained by the contractor 1162 or subcontractor from the commencement of such amendment until a 1163 period of three years from the date of final payment under such 1164 amendment or the date of expiration of such amendment, whichever is 1165 later. 1166 Sec. 27. Section 4e-31 of the general statutes is repealed and the 1167 following is substituted in lieu thereof (Effective July 1, 2022): 1168 When, for any reason, collusion or other anticompetitive practices are 1169 suspected among any bidders or proposers for a [state] contract of a 1170 contracting agency, a notice of the relevant facts shall be transmitted to 1171 the Attorney General by any affected party, including, but not limited 1172 to, the [state] contracting agency, a bidder or a proposer. 1173 Sec. 28. Section 4e-32 of the general statutes is repealed and the 1174 following is substituted in lieu thereof (Effective July 1, 2022): 1175 Each [state] contracting agency shall retain and dispose of all 1176 procurement records in accordance with records retention guidelines 1177 and schedules approved by the Public Records Administrator. 1178 Sec. 29. Section 4e-33 of the general statutes is repealed and the 1179 following is substituted in lieu thereof (Effective July 1, 2022): 1180 The agency procurement officer of each [state] contracting agency 1181 shall maintain a record that lists all contracts awarded pursuant to 1182 section 4e-21, as amended by this act, and the regulations adopted under 1183 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 39 of 60 section 4e-23 for a minimum of five years after the date of any such 1184 award. Such record shall contain: 1185 (1) Each contractor's name; 1186 (2) The amount and type of each contract; and 1187 (3) A listing of the supplies, services or construction procured under 1188 each contract. 1189 Sec. 30. Section 4e-34 of the general statutes is repealed and the 1190 following is substituted in lieu thereof (Effective July 1, 2022): 1191 (a) After reasonable notice and hearing and consultation with the 1192 relevant [state] contracting agency and the Attorney General, the State 1193 Contracting Standards Board, acting through a subcommittee of three 1194 members, appointed by the chairperson, which subcommittee shall 1195 include not less than one legislative appointee, may disqualify any 1196 contractor, bidder or proposer, for a period of not more than five years, 1197 from bidding on, applying for or participating as a contractor or 1198 subcontractor under, contracts with the state or quasi-public agencies. 1199 Such disqualification shall be upon the vote of two-thirds of the 1200 members of the subcommittee present and voting for that purpose. Such 1201 hearing shall be conducted in accordance with the provisions of chapter 1202 54. The subcommittee shall issue a written recommendation not later 1203 than sixty days after the conclusion of such hearing, and shall state the 1204 reason for the recommended action and, if the disqualification is 1205 recommended, the period of time the contractor, bidder or proposer 1206 shall be disqualified. In determining whether to disqualify a contractor, 1207 bidder or proposer, the subcommittee shall consider the seriousness of 1208 the acts or omissions of the contractor, bidder or proposer and any 1209 mitigating factors. Such recommendation shall be submitted to the 1210 board for action and sent to the contractor by certified mail, return 1211 receipt requested. If disqualification is recommended, the contractor 1212 shall have thirty days to submit comments to the board. Upon receipt of 1213 the proposed recommendation by the subcommittee, the board shall 1214 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 40 of 60 issue a written decision either adopting, rejecting or modifying the 1215 subcommittee's recommendation. Such decision shall be issued not later 1216 than thirty days after receipt by the board of the contractor's comments, 1217 if any. The board shall send the decision to the contractor by certified 1218 mail, return receipt requested. The written decision shall be a final 1219 decision for purposes of sections 4-180 and 4-183. 1220 (b) Causes for such disqualification shall include the following: 1221 (1) Conviction of, or entry of a plea of guilty or nolo contendere or 1222 admission to, the commission of a criminal offense as an incident to 1223 obtaining or attempting to obtain a public or private contract or 1224 subcontract, or in the performance of such contract or subcontract; 1225 (2) Conviction of, or entry of a plea of guilty or nolo contendere or 1226 admission to, the violation of any state or federal law for embezzlement, 1227 theft, forgery, bribery, falsification or destruction of records, receiving 1228 stolen property or any other offense indicating a lack of business 1229 integrity or business honesty which affects responsibility as a [state] 1230 contractor with the state or a quasi-public agency; 1231 (3) Conviction of, or entry of a plea of guilty or nolo contendere or 1232 admission to, a violation of any state or federal antitrust, collusion or 1233 conspiracy law arising out of the submission of bids or proposals on a 1234 public or private contract or subcontract; 1235 (4) Accumulation of two or more suspensions pursuant to section 4e-1236 35, as amended by this act, within a twenty-four-month period; 1237 (5) A wilful, negligent or reckless failure to perform in accordance 1238 with the terms of one or more contracts or subcontracts, agreements or 1239 transactions with [state] contracting agencies; 1240 (6) A history of failure to perform or of unsatisfactory performance 1241 on one or more public contracts, agreements or transactions with [state] 1242 contracting agencies; 1243 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 41 of 60 (7) A wilful violation of a statutory or regulatory provision or 1244 requirement applicable to a contract, agreement or transaction with 1245 [state] contracting agencies; 1246 (8) A wilful or egregious violation of the ethical standards set forth in 1247 sections 1-84, 1-86e and 1-101nn, as determined by the Citizen's Ethics 1248 Advisory Board; or 1249 (9) Any other cause or conduct the board determines to be so serious 1250 and compelling as to affect responsibility as a [state] contractor, 1251 including, but not limited to: 1252 (A) Disqualification by another state for cause; 1253 (B) The fraudulent or criminal conduct of any officer, director, 1254 shareholder, partner, employee or other individual associated with a 1255 contractor, bidder or proposer of such contractor, bidder or proposer, 1256 provided such conduct occurred in connection with the individual's 1257 performance of duties for or on behalf of such contractor, bidder or 1258 proposer and such contractor, bidder or proposer knew or had reason 1259 to know of such conduct; 1260 (C) The existence of an informal or formal business relationship with 1261 a contractor who has been disqualified from bidding or proposing on 1262 [state] contracts of any [state] contracting agency. 1263 (c) Upon written request by the affected [state] contractor, bidder or 1264 proposer, the State Contracting Standards Board may reduce the period 1265 or extent of disqualification for a contractor, bidder or proposer if 1266 documentation supporting any of the following reasons for 1267 modification is provided to the board by the contractor, bidder or 1268 proposer: 1269 (1) Newly discovered material evidence; 1270 (2) Reversal of the conviction upon which the disqualification was 1271 based; 1272 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 42 of 60 (3) Bona fide change in ownership or management; or 1273 (4) Elimination of other causes for which the disqualification was 1274 imposed. 1275 Sec. 31. Section 4e-35 of the general statutes is repealed and the 1276 following is substituted in lieu thereof (Effective July 1, 2022): 1277 (a) For purposes of this section and sections 4e-37 and 4e-38, as 1278 amended by this act, "contracting agency of the state" does not include 1279 a quasi-public agency. After reasonable notice and a hearing, conducted 1280 in accordance with the provisions of chapter 54, the department head of 1281 any [state] contracting agency of the state may suspend any contractor, 1282 bidder or proposer for a period of not more than six months from 1283 bidding on, applying for or performing work as a contractor or 1284 subcontractor under, contracts with the state. The department head 1285 shall issue a written decision not later than ninety days after the 1286 conclusion of such hearing and state in the decision the reasons for the 1287 action taken and, if the contractor, bidder or proposer is being 1288 suspended, the period of such suspension. In determining whether to 1289 suspend a contractor, bidder or proposer, the department head shall 1290 consider the seriousness of the acts or omissions of the contractor, 1291 bidder or proposer and any mitigating factors. The department head 1292 shall send such decision to the contractor and the State Contracting 1293 Standards Board by certified mail, return receipt requested. Such 1294 decision shall be a final decision for purposes of sections 4-180 and 4-1295 183. 1296 (b) Causes for such suspension shall include the following: 1297 (1) Failure without good cause to perform in accordance with 1298 specifications or within the time limits provided in the contract; 1299 (2) A record of failure to perform or of unsatisfactory performance in 1300 accordance with the terms of one or more contracts, provided failure to 1301 perform or unsatisfactory performance caused by acts beyond the 1302 control of the contractor shall not be considered to be a basis for 1303 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 43 of 60 suspension; 1304 (3) Any cause the complainant [state] contracting agency of the state 1305 determines to be so serious and compelling as to affect the responsibility 1306 of a state contractor, including suspension by another [state] contracting 1307 agency of the state for cause; or 1308 (4) A violation of the ethical standards set forth in section 1-84, 1-86e 1309 or 1-101nn, as determined by the Citizen's Ethics Advisory Board. 1310 (c) The State Contracting Standards Board may grant an exception 1311 permitting a suspended contractor to participate in a particular contract 1312 or subcontract upon a written determination by the board that there is 1313 good cause for such exception and that such exception is in the best 1314 interest of the state. 1315 (d) The department head of each [state] contracting agency of the 1316 state shall conduct reviews of contractors and shall file reports 1317 pertaining to any of the reasons set forth in this section that may be the 1318 basis for disqualification. 1319 Sec. 32. Subsections (g) to (i), inclusive, of section 4e-37 of the general 1320 statutes are repealed and the following is substituted in lieu thereof 1321 (Effective July 1, 2022): 1322 (g) In the event that the appeals review subcommittee or the board 1323 determines that a procedural violation occurred, or that allegations of 1324 an unauthorized or unwarranted, noncompetitive selection process 1325 have been substantiated, the board shall direct the [state] contracting 1326 agency of the state to take corrective action not later than thirty days 1327 after the date of the subcommittee's or board's decision, as applicable. 1328 (h) In the event such appeal is found to be frivolous by the appeals 1329 review subcommittee or the full board, such frivolous appeal may serve 1330 as a basis for disqualification pursuant to section 4e-34, as amended by 1331 this act. 1332 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 44 of 60 (i) Any three members of the board may request a full board review 1333 of any contract deliberation or award process of a [state] contracting 1334 agency. 1335 Sec. 33. Section 4e-38 of the general statutes is repealed and the 1336 following is substituted in lieu thereof (Effective July 1, 2022): 1337 The State Contracting Standards Board shall issue a decision in 1338 writing or take other appropriate action on each appeal submitted 1339 pursuant to section 4e-37, as amended by this act. A copy of any decision 1340 shall be provided to all parties, the department head of the [state] 1341 contracting agency of the state and the Chief Procurement Officer. 1342 Sec. 34. Section 4e-39 of the general statutes is repealed and the 1343 following is substituted in lieu thereof (Effective July 1, 2022): 1344 If, prior to award, it is determined by the State Contracting Standards 1345 Board that a solicitation or proposed award of a contract by a [state] 1346 contracting agency is in violation of law, then the solicitation or 1347 proposed award shall be: 1348 (1) Cancelled; or 1349 (2) Revised to comply with the law. 1350 Sec. 35. Section 4e-40 of the general statutes is repealed and the 1351 following is substituted in lieu thereof (Effective July 1, 2022): 1352 If, after an award, it is determined by the State Contracting Standards 1353 Board that a solicitation or award of a contract by a [state] contracting 1354 agency is in violation of law: 1355 (1) If the person awarded the contract did not act in bad faith: 1356 (A) The contract may be ratified and affirmed by the [state] 1357 contracting agency, provided it is determined by the board that doing 1358 so is in the best interests of the state; or 1359 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 45 of 60 (B) The contract may be terminated and the person awarded the 1360 contract shall be compensated for the actual expenses reasonably 1361 incurred under the contract, plus a reasonable profit, prior to the 1362 termination. 1363 (2) If the person awarded the contract acted in bad faith: 1364 (A) The contract may be declared null and void; or 1365 (B) The contract may be ratified and affirmed if such action is in the 1366 best interests of the state, as determined by the State Contracting 1367 Standards Board, in writing, without prejudice to the [state's] 1368 contracting agency's right to such damages as may be appropriate. 1369 Sec. 36. Section 4e-43 of the general statutes is repealed and the 1370 following is substituted in lieu thereof (Effective July 1, 2022): 1371 Not later than June 1, 2010, the State Insurance and Risk Management 1372 Board established pursuant to section 4a-19 shall adopt regulations, in 1373 accordance with the provisions of chapter 54, in consultation with the 1374 State Contracting Standards Board, that specify when a [state] 1375 contracting agency shall require proposers to provide appropriate 1376 errors and omissions insurance to cover architectural and engineering 1377 services under the project delivery methods established in regulations 1378 adopted pursuant to section 4e-41. 1379 Sec. 37. Section 4e-45 of the general statutes is repealed and the 1380 following is substituted in lieu thereof (Effective July 1, 2022): 1381 With respect to infrastructure facilities, not later than June 1, 2010, the 1382 State Contracting Standards Board, in consultation with the [state] 1383 contracting agencies and the Attorney General, shall adopt regulations, 1384 in accordance with the provisions of chapter 54, requiring the inclusion 1385 in [state] contracts with any [state] contracting agency of clauses 1386 providing for adjustments in prices, time of performance, remedies, 1387 termination or other contract provisions necessary to protect the 1388 interests of the state. 1389 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 46 of 60 Sec. 38. Section 4e-46 of the general statutes is repealed and the 1390 following is substituted in lieu thereof (Effective July 1, 2022): 1391 Not later than June 1, 2010, the State Contracting Standards Board 1392 shall adopt regulations, in accordance with the provisions of chapter 54, 1393 concerning the procedure and circumstances under which a [state] 1394 contracting agency may allow contract modification, change order, or 1395 contract price adjustment under a construction contract with the [state] 1396 contracting agency in excess of fifty thousand dollars. Such regulations 1397 shall require that every contract modification, change order or contract 1398 price adjustment under a construction contract with [the state] a 1399 contracting agency in excess of fifty thousand dollars shall be subject to 1400 prior written certification by the fiscal officer of the [state] contracting 1401 agency or other agency responsible for funding the project or the 1402 contract, or other official responsible for monitoring and reporting upon 1403 the status of the costs of the total project budget or contract budget, as 1404 to the effect of the contract modification, change order, or adjustment in 1405 contract price on the total project budget or the total contract budget. 1406 Such regulations shall further provide that in the event the certification 1407 of the fiscal officer or other responsible official discloses a resulting 1408 increase in the total project budget or the total contract budget, the 1409 agency procurement officer shall not execute or make such contract 1410 modification, change order, or adjustment in contract price unless 1411 sufficient funds are available or the scope of the project or contract is 1412 adjusted so as to permit the degree of completion that is feasible within 1413 the total project budget or total contract budget as it existed prior to the 1414 contract modification, change order, or adjustment in contract price 1415 under consideration provided, with respect to the validity, as to the 1416 contractor, of any executed contract modification, change order, or 1417 adjustment in contract price which the contractor has reasonably relied 1418 upon, it shall be presumed that there has been compliance with the 1419 provisions of this section. 1420 Sec. 39. Section 4e-48 of the general statutes is repealed and the 1421 following is substituted in lieu thereof (Effective July 1, 2022): 1422 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 47 of 60 (a) For the purposes of this section, "nonresident bidder" means a 1423 business that is not a resident of the state that submits a bid in response 1424 to an invitation to bid by a [state] contracting agency, "resident bidder" 1425 means a business that submits a bid in response to an invitation to bid 1426 by a [state] contracting agency and that has paid unemployment taxes 1427 or income taxes in this state during the twelve calendar months 1428 immediately preceding submission of such bid, has a business address 1429 in the state and has affirmatively claimed such status in the bid 1430 submission, and "contract" [means "contract" as defined in section 4e-1 1431 and "state contracting agency" means "state contracting agency", as 1432 defined] and "contracting agency" have the same meanings as provided 1433 in section 4e-1, as amended by this act. 1434 (b) Notwithstanding any provision of law, in the award of a contract, 1435 after the original bids have been received and an original lowest 1436 responsible qualified bid is identified, a [state] contracting agency shall 1437 add a per cent increase to the original bid of a nonresident bidder equal 1438 to the per cent, if any, of the preference given to such nonresident bidder 1439 in the state in which such nonresident bidder resides. If, after 1440 application of such per cent increase, the bidder that submits the lowest 1441 responsible qualified bid is a resident bidder, the [state] contracting 1442 agency shall award such contract to such resident bidder provided such 1443 resident bidder agrees, in writing, to meet the original lowest 1444 responsible qualified bid. Any such agreement by such resident bidder 1445 to meet the original lowest responsible qualified bid shall be made not 1446 later than seventy-two hours after such resident bidder receives notice 1447 from such [state] contracting agency that such resident bidder may be 1448 awarded such contract if such resident bidder agrees to meet the 1449 original lowest responsible qualified bid. 1450 (c) Not later than January 1, 2009, and each January thereafter, the 1451 State Contracting Standards Board shall publish a list of states that give 1452 preference to in-state bidders with the per cent increase applied in each 1453 state. Such list shall be made available to all [state] contracting agencies 1454 and may be relied upon by such agencies in determining the lowest 1455 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 48 of 60 responsible bidder. 1456 Sec. 40. Section 4e-72 of the 2022 supplement to the general statutes 1457 is repealed and the following is substituted in lieu thereof (Effective July 1458 1, 2022): 1459 As used in this section, "contract", ["state contracting agency"] 1460 "contracting agency", "data" and "contractor" have the same meanings 1461 as provided in section 4e-1, as amended by this act. Any contract 1462 between a [state] contracting agency and a contractor that is entered 1463 into, renewed or amended on or after October 1, 2021, or in the case of a 1464 contracting agency that is a quasi-public agency, entered into, renewed 1465 or amended on or after July 1, 2022, shall contain a provision authorizing 1466 the [state] contracting agency to access any data concerning such 1467 contract that is in the possession or control of the contractor upon 1468 demand in a format prescribed by the [state] contracting agency at no 1469 additional cost to such agency. 1470 Sec. 41. Section 15-31b of the 2022 supplement to the general statutes 1471 is repealed and the following is substituted in lieu thereof (Effective July 1472 1, 2022): 1473 (a) The purposes of the Connecticut Port Authority shall be to 1474 coordinate the development of Connecticut's ports and harbors, with a 1475 focus on private and public investments, pursue federal and state funds 1476 for dredging and other infrastructure improvements to increase cargo 1477 movement through the ports and maintain navigability of all ports and 1478 harbors, market the economic development of such ports and harbors, 1479 work with the Department of Economic and Community Development 1480 and other state, local and private entities to maximize the economic 1481 potential of the ports and harbors, support and enhance the overall 1482 development of the state's maritime commerce and industries, 1483 coordinate the planning and funding of capital projects promoting the 1484 development of the ports and harbors, develop strategic entrepreneurial 1485 initiatives that may be available to the state, coordinate the state's 1486 maritime policy activities, serve as the Governor's principal maritime 1487 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 49 of 60 policy advisor and undertake such other responsibilities as may be 1488 assigned to it. To accomplish the purposes of the authority, the authority 1489 shall have the duty and power to: 1490 (1) Have perpetual succession as a body politic and corporate and to 1491 adopt bylaws for the regulation of its affairs and the conduct of its 1492 business; 1493 (2) Adopt an official seal and alter the same at pleasure; 1494 (3) Maintain an office at such place or places as it may designate; 1495 (4) Sue and be sued in its own name, and plead and be impleaded; 1496 (5) Develop an organizational and management structure that will 1497 best accomplish the goals of the authority concerning Connecticut ports 1498 and harbors; 1499 (6) Create a code of conduct for the board of directors of the authority 1500 consistent with part I of chapter 10; 1501 (7) Adopt rules for the conduct of its business, which shall not be 1502 considered regulations as defined in section 4-166; 1503 (8) Adopt an annual budget and plan of operations, including a 1504 requirement of board approval before the budget or plan may take 1505 effect; 1506 (9) Make and enter into all contracts and agreements that are 1507 necessary, desirable or incidental to the conduct of its business; 1508 (10) Enter into joint ventures and invest in, and participate with, any 1509 person or entity, including, without limitation, governmental or private 1510 business entities in the formation, ownership, management and 1511 operation of business entities, including stock and nonstock 1512 corporations, limited liability companies and general and limited 1513 partnerships, formed to advance the purposes of the authority. The 1514 officers, employees and members of the board of directors of the 1515 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 50 of 60 authority may serve, without compensation, as directors or officers of 1516 any such business entities formed and such service shall be deemed to 1517 be within the discharge of the duties of such officers, employees or 1518 directors to the authority; 1519 (11) Receive and accept, from any source, aid or contributions, 1520 including money, property, labor and other things of value; 1521 (12) Award grants and subsidies, make loans and provide other 1522 forms of financial assistance to any person or entity under a written 1523 policy, adopted in accordance with the provisions of section 1-121, 1524 setting forth the eligibility criteria, application process, and such other 1525 provisions as may be necessary or desirable to carry out the purposes of 1526 this section; 1527 (13) Charge reasonable fees for the services it performs and waive, 1528 suspend, reduce or otherwise modify such fees in accordance with 1529 written criteria established by the authority, and provided, that no 1530 change may be made in fees without at least thirty days prior notice, 1531 published in accordance with the provisions of section 1-121; 1532 (14) Employ such assistants, agents and other employees as may be 1533 necessary or desirable to carry out its purposes. (A) The executive 1534 director and such employees shall be exempt from the classified service 1535 and, except as provided in subparagraph (B) of this subdivision, shall 1536 not be employees, as defined in subsection (b) of section 5-270. The 1537 authority shall fix appropriate compensation for such employees and 1538 establish all necessary or appropriate personnel practices and policies, 1539 including those relating to hiring, promotion, compensation, retirement 1540 and collective bargaining, which need not be in accordance with chapter 1541 68, and the authority shall not be an employer, as defined in subsection 1542 (a) of section 5-270, and may engage consultants, attorneys and 1543 appraisers as may be necessary or desirable to carry out its purposes in 1544 accordance with sections 15-31a to 15-31i, inclusive. (B) For purposes of 1545 group welfare benefits and retirement, including, but not limited to, 1546 those provided under chapter 66 and sections 5-257 and 5-259, the 1547 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 51 of 60 officers and all other employees of the authority shall be state 1548 employees. The authority shall reimburse the appropriate state agencies 1549 for all costs incurred by such designation; 1550 (15) Invest in, acquire, lease, purchase, own, manage, hold and 1551 dispose of real property and lease, convey or deal in or enter into 1552 agreements with respect to such property on any terms necessary or 1553 incidental to carrying out the purposes of sections 15-31a to 15-31i, 1554 inclusive, provided such transactions shall not be subject to approval, 1555 review or regulation by any state agency pursuant to title 4b or any other 1556 provision of the general statutes, except (A) the authority shall not 1557 convey fee simple ownership in any property associated with the ports 1558 or harbors under its jurisdiction and control without the approval of the 1559 State Properties Review Board and the Attorney General, and (B) as 1560 provided in [subsection (c) of this section] chapter 62; and 1561 (16) Adopt any policies and procedures necessary to carry out the 1562 provisions of this section in accordance with the provisions of section 1-1563 121. 1564 (b) The authority shall continue as long as it has bonds or other 1565 obligations outstanding and until its existence is terminated by law, 1566 provided no such termination shall affect any outstanding contractual 1567 obligation of the authority and the state shall succeed to the obligations 1568 of the authority under any contract. Upon the termination of the 1569 existence of the authority, all its rights and properties shall pass to and 1570 be vested in the state of Connecticut. 1571 [(c) On and after June 23, 2021, until July 1, 2026, the authority shall 1572 be a state contracting agency for the purposes of chapter 62, except for 1573 the provisions of section 4e-16, and shall be subject to the authority of 1574 the State Contracting Standards Board established under section 4e-2.] 1575 Sec. 42. Subsection (e) of section 19a-32s of the general statutes is 1576 repealed and the following is substituted in lieu thereof (Effective July 1, 1577 2022): 1578 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 52 of 60 (e) For purposes of this section and section 19a-32r, the board shall 1579 not be considered a [state] contracting agency, as defined in [subdivision 1580 (28) of] section 4e-1, as amended by this act. 1581 Sec. 43. Subsection (c) of section 10-357b of the 2022 supplement to 1582 the general statutes is repealed and the following is substituted in lieu 1583 thereof (Effective July 1, 2022): 1584 (c) The State Education Resource Center shall be subject to (1) rules, 1585 regulations and restrictions on purchasing, procurement, personal 1586 service agreements and the disposition of assets generally applicable to 1587 Connecticut state agencies, including those contained in titles 4, 4a and 1588 4b and [section 4e-19] chapter 62, and (2) audit by the Auditors of Public 1589 Accounts under chapter 12 and section 2-90. 1590 Sec. 44. Section 10a-196 of the general statutes is repealed and the 1591 following is substituted in lieu thereof (Effective July 1, 2022): 1592 Sections 10a-176 to 10a-195, inclusive, shall be deemed to provide a 1593 complete, additional and alternative method for the doing of the things 1594 authorized thereby, and shall be regarded as supplemental and 1595 additional to powers conferred by other laws; provided the issuance of 1596 bonds and refunding bonds under the provisions of this chapter need 1597 not comply with the requirements of any other law applicable to the 1598 issuance of bonds including, particularly, title 42a; and provided in the 1599 construction and acquisition of a project pursuant hereto the authority 1600 need not comply with the requirements of chapter 50. Except as 1601 otherwise expressly provided in this chapter, none of the powers 1602 granted to the authority under the provisions of this chapter shall be 1603 subject to the supervision or regulation or require the approval or 1604 consent of any municipality or political subdivision or any commission, 1605 board, body, bureau, official or agency thereof or of the state, except for 1606 the provisions concerning contracting agencies set forth in chapter 62. 1607 Sec. 45. Subsection (s) of section 10a-204b of the general statutes is 1608 repealed and the following is substituted in lieu thereof (Effective July 1, 1609 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 53 of 60 2022): 1610 (s) The provisions of this section shall be deemed to provide a 1611 complete, additional and alternative method for the actions and the 1612 things authorized thereby and shall be regarded as supplemental and 1613 additional to powers granted by other laws; the issuance of bonds, notes 1614 or other obligations under the provisions of this section need not comply 1615 with the requirements of any law applicable to the issuance of bonds, 1616 notes or other obligations. This section, being necessary for the welfare 1617 of the state and its inhabitants, shall be liberally construed to affect its 1618 purpose. None of the powers granted to the corporation or to any 1619 subsidiary created pursuant to subdivision (5) of section 10a-204 under 1620 the provisions of this section shall be subject to the supervision or 1621 regulation or require the approval or consent of any municipality or 1622 political subdivision or any department, division, commission, board, 1623 body, bureau, official or agency thereof or of the state, and the exercise 1624 thereof shall not cause the corporation or any such subsidiary to be 1625 construed to be an agency within the scope of chapter 54 or a 1626 department, institution or agency of the state, except that the 1627 corporation or any such subsidiary shall comply with any provisions of 1628 chapter 62 concerning contracting agencies. 1629 Sec. 46. Section 10a-243 of the general statutes is repealed and the 1630 following is substituted in lieu thereof (Effective July 1, 2022): 1631 The provisions of this chapter shall be deemed to provide a complete, 1632 additional and alternative method for the actions of the things 1633 authorized thereby and shall be regarded as supplemental and 1634 additional to powers granted by other laws; the issuance of revenue 1635 bonds or notes and revenue refunding bonds or notes under the 1636 provisions of this chapter need not comply with the requirements of any 1637 other law applicable to the issuance of bonds or notes. This chapter, 1638 being necessary for the welfare of the state and its inhabitants, shall be 1639 liberally construed to effect its purpose. Except as otherwise expressly 1640 provided in this chapter or the provisions concerning contracting 1641 agencies in chapter 62, none of the powers granted to the authority 1642 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 54 of 60 under the provisions of this chapter shall be subject to the supervision 1643 or regulation or require the approval or consent of any municipality or 1644 political subdivision or any department, division, commission, board, 1645 body, bureau, official or agency thereof or of the state. The authority 1646 shall not be construed to be an agency within the scope of chapter 54 or 1647 a department, institution or agency of the state. 1648 Sec. 47. Subdivision (16) of subsection (b) of section 12-806 of the 2022 1649 supplement to the general statutes is repealed and the following is 1650 substituted in lieu thereof (Effective July 1, 2022): 1651 (16) To invest in, acquire, lease, purchase, own, manage, hold and 1652 dispose of real property and lease, convey or deal in or enter into 1653 agreements with respect to such property on any terms necessary or 1654 incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-1655 818, inclusive, and sections 12-853 and 12-854, provided such 1656 transactions shall not be subject to approval, review or regulation 1657 pursuant to title 4b or any other statute by any state agency, except that 1658 real property transactions shall be subject to review by the State 1659 Properties Review Board and contracts shall be subject to the applicable 1660 provisions of chapter 62; 1661 Sec. 48. Section 12-815 of the general statutes is repealed and the 1662 following is substituted in lieu thereof (Effective July 1, 2022): 1663 (a) The corporation shall establish and adopt specific policies, rules 1664 and procedures on purchasing and contracting. Such policies, rules and 1665 procedures or amendments thereto shall be approved by a two-thirds 1666 vote of the entire board. Notwithstanding any other provision of law to 1667 the contrary, the corporation may enter into management, consulting 1668 and other agreements for the provision of goods, services and 1669 professional advisors necessary or useful in connection with the 1670 operation and management of the lottery (1) pursuant to a process of 1671 open or competitive bidding, provided (A) the corporation shall first 1672 determine the format, content and scope of any agreement for any 1673 procurement of goods or services, the conditions under which bidding 1674 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 55 of 60 will take place and the schedule and stipulations for contract award, and 1675 (B) the corporation may select the contractor deemed to have submitted 1676 the most favorable bid, considering price and other factors, when, in the 1677 judgment of the corporation, such award is in the best interests of the 1678 corporation, or (2) if the corporation, in its discretion, determines that, 1679 due to the nature of the agreement to be contracted for or procured, 1680 open or public bidding is either impracticable or not in the best interests 1681 of the corporation, by negotiation with such prospective providers as 1682 the corporation may determine. The terms and conditions of agreements 1683 and the fees or other compensation to be paid to such persons shall be 1684 determined by the corporation. The agreements entered into by the 1685 corporation in accordance with the provisions of this section shall not 1686 be subject to the approval of any state department, office or agency, 1687 except as provided in any applicable provision of chapter 62 or 1688 regulations adopted by the Department of Consumer Protection. 1689 Nothing in this section shall be deemed to restrict the discretion of the 1690 corporation to utilize its own staff and workforce for the performance of 1691 any of its assigned responsibilities and functions whenever, in the 1692 discretion of the corporation, it becomes necessary, convenient or 1693 desirable to do so. Copies of all agreements of the corporation shall be 1694 maintained by the corporation at its offices as public records, subject to 1695 said exemption. 1696 (b) [The] Except as provided in chapter 62, the corporation shall not 1697 be subject to rules, regulations or restrictions on purchasing or 1698 procurement or the disposition of assets generally applicable to 1699 Connecticut state agencies, including those contained in titles 4a and 4b 1700 and the corresponding rules and regulations. The board shall adopt 1701 rules and procedures on purchasing, procurement and the disposition 1702 of assets applicable to the corporation. The adoption of such rules or 1703 procedures shall not be subject to chapter 54. Any such rules or 1704 procedures shall be a public record, as defined in section 1-200. 1705 Sec. 49. Section 22a-268 of the general statutes is repealed and the 1706 following is substituted in lieu thereof (Effective July 1, 2022): 1707 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 56 of 60 The authority shall utilize private industry, by contract, to carry out 1708 the business, design, operating, management, marketing, planning and 1709 research and development functions of the authority, unless the 1710 authority determines that it is in the public interest to adopt another 1711 course of action. The authority is hereby empowered to enter into long-1712 term contracts with private persons for the performance of any such 1713 functions of the authority which, in the opinion of the authority, can 1714 desirably and conveniently be carried out by a private person under 1715 contract provided any such contract shall contain such terms and 1716 conditions as will enable the authority to retain overall supervision and 1717 control of the business, design, operating, management, transportation, 1718 marketing, planning and research and development functions to be 1719 carried out or to be performed by such private persons pursuant to such 1720 contract. Such contracts shall be entered into either on a competitive 1721 negotiation or competitive bidding basis, and the authority in its 1722 discretion may select the type of contract it deems most prudent to 1723 utilize, pursuant to the contracting procedures adopted under section 1724 22a-268a and considering the scope of work, the management 1725 complexities associated therewith, the extent of current and future 1726 technological development requirements and the best interests of the 1727 state. Whenever a long-term contract is entered into on other than a 1728 competitive bidding basis, the criteria and procedures therefor shall 1729 conform to applicable provisions of subdivision (16) of subsection (a) 1730 and subsections (b) and (c) of section 22a-266, provided however, that 1731 any contract for a period of over five years in duration, or any contract 1732 for which the annual consideration is greater than fifty thousand dollars 1733 shall be approved by a two-thirds vote of the authority's full board of 1734 directors. The terms and conditions of such contracts shall be 1735 determined by the authority, as shall the fees or other similar 1736 compensation to be paid to such persons for such contracts. The 1737 contracts entered into by the authority shall not be subject to the 1738 approval of any other state department, office or agency, except as 1739 provided in chapter 62. However, copies of all contracts of the authority 1740 shall be maintained by the authority as public records, subject to the 1741 proprietary rights of any party to the contract. Nothing of the aforesaid 1742 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 57 of 60 shall be deemed to restrict the discretion of the authority to utilize its 1743 own staff and work force for the performance of any of its assigned 1744 responsibilities and functions whenever, in the discretion of the 1745 authority, it becomes necessary, convenient or desirable to do so. Any 1746 litigation with respect to any terms, conditions or provisions of any 1747 contract of the authority, or the performance or nonperformance of same 1748 by either party, shall be tried before a judge of the Superior Court of 1749 Connecticut. 1750 Sec. 50. Subdivision (14) of subsection (b) of section 31-49h of the 1751 general statutes is repealed and the following is substituted in lieu 1752 thereof (Effective July 1, 2022): 1753 (14) Make and enter into any contract or agreement necessary or 1754 incidental to the performance of its duties and execution of its powers. 1755 [The] Except as provided in chapter 62, the contracts and agreements 1756 entered into by the authority shall not be subject to the approval of any 1757 other state department, office or agency, provided copies of all such 1758 contracts shall be maintained by the authority as public records, subject 1759 to the proprietary rights of any party to such contracts. No contract shall 1760 contain any provision in which any contractor derives any direct or 1761 indirect economic benefit from denying or otherwise influencing the 1762 outcome of any claim for benefits. The standard criteria for the 1763 evaluation of proposals relating to claims processing, web site 1764 development, database development, marketing and advertising, in the 1765 event the authority seeks the services of an outside contractor for such 1766 tasks, and for the evaluation of proposals relating to all other contracts 1767 in amounts equal to or exceeding two hundred fifty thousand dollars 1768 shall include, but need not be limited to: (A) Transparency, (B) cost, (C) 1769 efficiency of operations, (D) quality of work related to the contracts 1770 issued, (E) user experience, (F) accountability, and (G) a cost-benefit 1771 analysis documenting the direct and indirect costs of such contracts, 1772 including qualitative and quantitative benefits that will result from the 1773 implementation of such contracts. The establishment of additional 1774 standard criteria shall be approved by a two-thirds vote of the board 1775 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 58 of 60 after such criteria have been posted on a public Internet web site 1776 maintained by the authority for notice and comment for at least one 1777 week prior to such vote. 1778 Sec. 51. Subdivision (13) of subsection (c) of section 38a-1083 of the 1779 2022 supplement to the general statutes is repealed and the following is 1780 substituted in lieu thereof (Effective July 1, 2022): 1781 (13) Make and enter into any contract or agreement necessary or 1782 incidental to the performance of its duties and execution of its powers, 1783 including, but not limited to, an agreement with the Office of Health 1784 Strategy to use funds collected under this section for the operation of 1785 the all-payer claims database established under section 19a-755a and to 1786 receive data from such database. The contracts entered into by the 1787 exchange shall not be subject to the approval of any other state 1788 department, office or agency, provided copies of all contracts of the 1789 exchange shall be maintained by the exchange as public records, subject 1790 to the proprietary rights of any party to the contract, except (A) as 1791 provided in chapter 62, and (B) any agreement with the Office of Health 1792 Strategy shall be subject to approval by said office and the Office of 1793 Policy and Management and no portion of such agreement shall be 1794 considered proprietary; 1795 Sec. 52. (Effective July 1, 2022) The sum of four hundred sixty-seven 1796 thousand fifty-five dollars is appropriated to the State Contracting 1797 Standards Board from the General Fund, for the fiscal year ending June 1798 30, 2023, for purposes of hiring five employees in accordance with the 1799 provisions of section 2 of this act. 1800 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(g) and (h) Sec. 5 July 1, 2022 4e-3 Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 59 of 60 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 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) Substitute Bill No. 473 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00473- R01-SB.docx } 60 of 60 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 Legislative Commissioners: In Section 3(12), "state or a quasi-public agency" was changed to "contracting agency" for consistency, Section 6 was reorganized for consistency with standard drafting conventions, in Section 12, "state" was bracketed before "contracts" for consistency and a reference to a definition was added for clarity and consistency and Section 14(a) was rewritten for consistency with standard drafting conventions. GAE Joint Favorable Subst.