LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692-R02- HB.docx 1 of 9 General Assembly Substitute Bill No. 5692 January Session, 2023 AN ACT CONCERNING OVERSIGHT OF CONTRACTS OF THE CONNECTICUT PORT AUTHORITY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective October 1, 2023) (a) As used in this 1 section: 2 (1) "Authority" means the Connecticut Port Authority established 3 under section 15-31a of the general statutes; 4 (2) "Supplies", "materials" and "equipment" mean any and all 5 articles of personal property furnished to or used by the authority; 6 (3) "Contractual services" means any laundry and cleaning service, 7 pest control service, janitorial service, security service, the rental and 8 repair, or maintenance, of equipment, machinery and other state-9 owned personal property, advertising and other service arrangements 10 where the service is provided by persons other than employees of the 11 authority; 12 (4) "Competitive bidding" means the submission of prices by 13 persons, firms or corporations competing for a contract to provide 14 supplies, materials, equipment or contractual services, under a 15 procedure in which the authority does not negotiate prices; 16 (5) "Competitive negotiation" means a procedure for contracting for 17 Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 2 of 9 supplies, materials, equipment or contractual services, in which (A) 18 proposals are solicited from qualified suppliers by a request for 19 proposals, and (B) changes may be negotiated in proposals and prices 20 after being submitted; 21 (6) "Bidder" means a person, firm or corporation submitting a 22 competitive bid in response to a solicitation; 23 (7) "Proposer" means a person, firm or corporation submitting a 24 proposal in response to a request for proposals; 25 (8) "Lowest responsible qualified bidder" means the bidder whose 26 bid is the lowest of those bidders possessing the skill, ability and 27 integrity necessary to faithful performance of the work based on 28 objective criteria considering past performance and financial 29 responsibility; and 30 (9) "Highest scoring bidder in a multiple criteria bid" means the 31 bidder whose bid receives the highest score for a combination of 32 attributes, including, but not limited to, price, skill, ability and 33 integrity necessary for the faithful performance of the work, based on 34 multiple criteria considering quality of product, warranty, life-cycle 35 cost, past performance, financial responsibility and other objective 36 criteria that are established in the bid solicitation for the contract. 37 (b) Notwithstanding any provision of the general statutes, any 38 purchases of, and contracts for, supplies, materials, equipment and 39 contractual services by the Connecticut Port Authority, except 40 purchases and contracts made pursuant to the provisions of subsection 41 (c) of this section and public utility services as provided in subsection 42 (e) of this section, shall be based, when possible, on competitive bids or 43 competitive negotiation. The authority shall solicit competitive bids or 44 proposals by providing notice of the planned purchase in a form and 45 manner that the authority determines will maximize public 46 participation in the competitive bidding or competitive negotiation 47 process, including participation by small contractors, as defined in 48 Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 3 of 9 section 4a-60g of the general statutes, and promote competition. Each 49 notice of a planned purchase under this subsection shall indicate the 50 type of goods and services to be purchased and the estimated value of 51 the contract award. The notice shall, when applicable, also contain a 52 notice of contract requirements concerning nondiscrimination and 53 affirmative action pursuant to section 4a-60 of the general statutes and 54 requirements concerning the awarding of contracts to small 55 contractors, minority business enterprises, individuals with a disability 56 and nonprofit corporations pursuant to section 4a-60g of the general 57 statutes. Each bid and proposal shall be kept sealed or secured until 58 opened publicly at the time stated in the notice soliciting such bid or 59 proposal. 60 (c) The authority may waive the requirement of competitive bidding 61 or competitive negotiation in the case of minor nonrecurring or 62 emergency purchases of ten thousand dollars or less in amount. 63 (d) The authority shall adopt procedures, in accordance with the 64 provisions of section 1-121 of the general statutes, establishing (1) 65 standards and procedures for using competitive negotiation for 66 purchases and contracts, including, but not limited to, criteria which 67 shall be considered in making purchases by competitive negotiation 68 and the weight which shall be assigned to each such criterion, and (2) 69 standards and procedures under which additional purchases may be 70 made under existing contracts. 71 (e) The purchase of or contract for the following public utility 72 services shall not be subject to competitive bidding or competitive 73 negotiation: (1) Electric distribution services; (2) water services; (3) gas 74 distribution services; (4) electric generation services if such services are 75 provided by an electric municipal utility other than a participating 76 electric municipal utility, as defined in section 16-1 of the general 77 statutes, in the service area of such electric municipal utility; and (5) 78 gas supply services until the date such services are competitive 79 pursuant to legislative act or order of the Public Utilities Regulatory 80 Authority, provided gas supply services shall be exempt from 81 Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 4 of 9 competitive bidding and competitive negotiation after such date if 82 such services are provided by a gas municipal utility in the service area 83 of such gas municipal utility. 84 (f) All open market orders or contracts of the authority shall be 85 awarded to (1) the lowest responsible qualified bidder, while taking 86 into consideration the qualities of the articles to be supplied, their 87 conformity with the specifications, their suitability to the requirements 88 of the authority and the delivery terms, (2) the highest scoring bidder 89 in a multiple criteria bid, in accordance with the criteria set forth in the 90 bid solicitation for the contract, or (3) the proposer whose proposal is 91 deemed by the authority to be the most advantageous, in accordance 92 with the criteria set forth in the request for proposals, including price 93 and evaluation factors. 94 (g) Notwithstanding any provision of the general statutes, when 95 awarding a contract through competitive negotiation, the authority 96 shall include price as an explicit factor in the criteria in the request for 97 proposals and for the contract award. In considering past performance 98 of a bidder for the purpose of determining the lowest responsible 99 qualified bidder or the highest scoring bidder in a multiple criteria bid, 100 the authority shall evaluate the skill, ability and integrity of the bidder 101 in terms of the bidder's fulfillment of past contract obligations and the 102 bidder's experience or lack of experience in delivering supplies, 103 materials, equipment or contractual services of the size or amount for 104 which bids have been solicited. 105 Sec. 2. Section 15-31b of the general statutes is repealed and the 106 following is substituted in lieu thereof (Effective October 1, 2023): 107 (a) The purposes of the Connecticut Port Authority shall be to 108 coordinate the development of Connecticut's ports and harbors, with a 109 focus on private and public investments, pursue federal and state 110 funds for dredging and other infrastructure improvements to increase 111 cargo movement through the ports and maintain navigability of all 112 ports and harbors, market the economic development of such ports 113 Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 5 of 9 and harbors, work with the Department of Economic and Community 114 Development and other state, local and private entities to maximize 115 the economic potential of the ports and harbors, support and enhance 116 the overall development of the state's maritime commerce and 117 industries, coordinate the planning and funding of capital projects 118 promoting the development of the ports and harbors, develop strategic 119 entrepreneurial initiatives that may be available to the state, coordinate 120 the state's maritime policy activities, serve as the Governor's principal 121 maritime policy advisor and undertake such other responsibilities as 122 may be assigned to it. To accomplish the purposes of the authority, the 123 authority shall have the duty and power to: 124 (1) Have perpetual succession as a body politic and corporate and to 125 adopt bylaws for the regulation of its affairs and the conduct of its 126 business; 127 (2) Adopt an official seal and alter the same at pleasure; 128 (3) Maintain an office at such place or places as it may designate; 129 (4) Sue and be sued in its own name, and plead and be impleaded; 130 (5) Develop an organizational and management structure that will 131 best accomplish the goals of the authority concerning Connecticut 132 ports and harbors; 133 (6) Create a code of conduct for the board of directors of the 134 authority consistent with part I of chapter 10; 135 (7) Adopt rules for the conduct of its business, which shall not be 136 considered regulations as defined in section 4-166; 137 (8) Adopt an annual budget and plan of operations, including a 138 requirement of board approval before the budget or plan may take 139 effect; 140 (9) Make and enter into all contracts and agreements that are 141 Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 6 of 9 necessary, desirable or incidental to the conduct of its business, subject 142 to the requirements of section 1 of this act and chapter 62; 143 (10) Enter into joint ventures and invest in, and participate with, any 144 person or entity, including, without limitation, governmental or 145 private business entities in the formation, ownership, management and 146 operation of business entities, including stock and nonstock 147 corporations, limited liability companies and general and limited 148 partnerships, formed to advance the purposes of the authority. The 149 officers, employees and members of the board of directors of the 150 authority may serve, without compensation, as directors or officers of 151 any such business entities formed and such service shall be deemed to 152 be within the discharge of the duties of such officers, employees or 153 directors to the authority; 154 (11) Receive and accept, from any source, aid or contributions, 155 including money, property, labor and other things of value; 156 (12) Award grants and subsidies, make loans and provide other 157 forms of financial assistance to any person or entity under a written 158 policy, adopted in accordance with the provisions of section 1-121, 159 setting forth the eligibility criteria, application process, and such other 160 provisions as may be necessary or desirable to carry out the purposes 161 of this section; 162 (13) Charge reasonable fees for the services it performs and waive, 163 suspend, reduce or otherwise modify such fees in accordance with 164 written criteria established by the authority, and provided, that no 165 change may be made in fees without at least thirty days prior notice, 166 published in accordance with the provisions of section 1-121; 167 (14) Employ such assistants, agents and other employees as may be 168 necessary or desirable to carry out its purposes. (A) The executive 169 director and such employees shall be exempt from the classified 170 service and, except as provided in subparagraph (B) of this 171 subdivision, shall not be employees, as defined in subsection (b) of 172 Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 7 of 9 section 5-270. The authority shall fix appropriate compensation for 173 such employees and establish all necessary or appropriate personnel 174 practices and policies, including those relating to hiring, promotion, 175 compensation, retirement and collective bargaining, which need not be 176 in accordance with chapter 68, and the authority shall not be an 177 employer, as defined in subsection (a) of section 5-270, and may 178 engage consultants, attorneys and appraisers as may be necessary or 179 desirable to carry out its purposes in accordance with sections 15-31a 180 to 15-31i, inclusive. (B) For purposes of group welfare benefits and 181 retirement, including, but not limited to, those provided under chapter 182 66 and sections 5-257 and 5-259, the officers and all other employees of 183 the authority shall be state employees. The authority shall reimburse 184 the appropriate state agencies for all costs incurred by such 185 designation; 186 (15) Invest in, acquire, lease, purchase, own, manage, hold and 187 dispose of real property and lease, convey or deal in or enter into 188 agreements with respect to such property on any terms necessary or 189 incidental to carrying out the purposes of sections 15-31a to 15-31i, 190 inclusive, provided such transactions shall not be subject to approval, 191 review or regulation by any state agency pursuant to title 4b or any 192 other provision of the general statutes, except (A) the authority shall 193 not convey fee simple ownership in any property associated with the 194 ports or harbors under its jurisdiction and control without the 195 approval of the State Properties Review Board and the Attorney 196 General, and (B) as provided in subsection (c) of this section; and 197 (16) Adopt any policies and procedures necessary to carry out the 198 provisions of this section in accordance with the provisions of section 199 1-121. 200 (b) The authority shall continue as long as it has bonds or other 201 obligations outstanding and until its existence is terminated by law, 202 provided no such termination shall affect any outstanding contractual 203 obligation of the authority and the state shall succeed to the obligations 204 of the authority under any contract. Upon the termination of the 205 Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 8 of 9 existence of the authority, all its rights and properties shall pass to and 206 be vested in the state of Connecticut. 207 (c) On and after June 23, 2021, [until July 1, 2026,] the authority shall 208 be a state contracting agency for the purposes of chapter 62, except for 209 the provisions of section 4e-16, and shall be subject to the authority of 210 the State Contracting Standards Board established under section 4e-2. 211 Sec. 3. Subdivision (28) of section 4e-1 of the general statutes is 212 repealed and the following is substituted in lieu thereof (Effective 213 October 1, 2023): 214 (28) "State contracting agency" means any executive branch agency, 215 board, commission, department, office, institution or council. "State 216 contracting agency" does not include the judicial branch, the legislative 217 branch, the offices of the Secretary of the State, the State Comptroller, 218 the Attorney General, the State Treasurer, with respect to their 219 constitutional functions, any state agency with respect to contracts 220 specific to the constitutional and statutory functions of the office of the 221 State Treasurer. For the purposes of every provision of this chapter 222 other than section 4e-16, "state contracting agency" includes the 223 Connecticut Port Authority, for the purposes of section 4e-16, "state 224 contracting agency" includes any constituent unit of the state system of 225 higher education and for the purposes of section 4e-19, "state 226 contracting agency" includes the State Education Resource Center, 227 established under section 10-4q; 228 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 New section Sec. 2 October 1, 2023 15-31b Sec. 3 October 1, 2023 4e-1(28) Statement of Legislative Commissioners: Section 1(f)(1) was redrafted for clarity. Substitute Bill No. 5692 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-05692- R02-HB.docx } 9 of 9 GAE Joint Favorable Subst. -LCO