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General Assembly Raised Bill No. 6612
January Session, 2023
LCO No. 3779
Referred to Committee on HUMAN SERVICES
Introduced by:
(HS)
AN ACT CONCERNING NONPROFIT HEALTH AND HUMAN
SERVICES PROVIDERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2023) (a) As used in this section and 1
sections 2 and 4 of this act, (1) "private provider organization" has the 2
same meaning as provided in section 4-70b of the general statutes, (2) 3
"health and human services" means services provided under contract 4
with a state agency that directly support the health, safety and welfare 5
of residents who may have conditions that include, but are not limited 6
to, intellectual, developmental, physical or mental disabilities or autism 7
spectrum disorder, (3) "state agency" has the same meaning as provided 8
in section 1-79 of the general statutes, and (4) "attempt to recover or 9
otherwise offset" means (A) efforts to recoup excess funds at the end of 10
each contract term or fiscal year, (B) reductions in contracted amounts 11
for the same or similar services from one contract period to the next 12
contract period, or (C) demands for other reimbursement of state funds 13
from such organization. 14
(b) Subject to the provisions of subsection (c) of this section, each state 15 Raised Bill No. 6612
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agency that contracts with a nonprofit private provider organization for 16
health and human services shall allow such nonprofit organization that 17
otherwise meets contractual requirements to retain any excess funds 18
from the contracted cost for services at the end of a contract term. No 19
state agency shall attempt to recover or otherwise offset funds retained 20
by such nonprofit organization from the contracted cost for services, 21
provided such nonprofit organization meets its contractual obligations 22
with such state agency. 23
(c) Notwithstanding the provisions of subsection (b) of this section, a 24
state agency shall not allow a nonprofit private provider organization 25
that contracts with the state to provide health and human services to 26
retain excess funds from the contracted cost for services under a contract 27
funded in whole, or in part, with federal funds when allowing such 28
organization to retain such funds will jeopardize federal funding or 29
reimbursement for such contract. 30
Sec. 2. (NEW) (Effective July 1, 2023) The Commissioner of 31
Developmental Services, in consultation with the Secretary of the Office 32
of Policy and Management, may extend the provisions of section 1 of 33
this act to other providers with which the Department of Developmental 34
Services contracts, provided they meet their contractual obligations 35
with the commissioner. 36
Sec. 3. Section 4-216 of the general statutes is repealed and the 37
following is substituted in lieu thereof (Effective July 1, 2023): 38
(a) No state agency may execute a personal service agreement having 39
a cost of more than fifty thousand dollars or a term of more than one 40
year, without the approval of the secretary. A state agency may apply 41
for an approval by submitting the following information to the 42
secretary: (1) A description of the services to be purchased and the need 43
for such services; (2) an estimate of the cost of the services and the term 44
of the agreement; (3) whether the services are to be on-going; (4) 45
whether the state agency has contracted out for such services during the 46
preceding two years and, if so, the name of the contractor, term of the 47 Raised Bill No. 6612
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agreement with such contractor and the amount paid to the contractor; 48
(5) whether any other state agency has the resources to provide the 49
services; (6) whether the agency intends to purchase the services by 50
competitive negotiation and, if not, why; and (7) whether it is possible 51
to purchase the services on a cooperative basis with other state agencies. 52
The secretary shall approve or disapprove an application within fifteen 53
business days after receiving it and any necessary supporting 54
information, provided if the secretary does not act within such 55
fifteen-day period the application shall be deemed to have been 56
approved. The secretary shall immediately notify the Auditors of Public 57
Accounts of any application which the secretary receives for approval 58
of a personal services agreement for audit services and give said 59
auditors an opportunity to review the application during such fifteen-60
day period and advise the secretary as to whether such audit services 61
are necessary and, if so, could be provided by said auditors. 62
(b) Each personal service agreement having a cost of more than fifty 63
thousand dollars or a term of more than one year shall be based on 64
competitive negotiation or competitive quotations, unless the state 65
agency purchasing the personal services applies to the secretary for a 66
waiver from such requirement and the secretary grants the waiver in 67
accordance with the guidelines adopted under section 4-215. 68
[(c) The secretary shall establish an incentive program for nonprofit 69
providers of human services that shall (1) allow providers who 70
otherwise meet contractual requirements to retain any savings realized 71
by the providers from the contracted cost for services, and (2) provide 72
that future contracted amounts from the state for the same types of 73
services are not reduced solely to reflect savings achieved in previous 74
contracts by such providers. For purposes of this subsection, "nonprofit 75
providers of human services" includes, but is not limited to, nonprofit 76
providers of services to persons with intellectual, physical or mental 77
disabilities or autism spectrum disorder. Any nonprofit provider of 78
human services allowed to retain savings under the incentive program 79
shall submit a report to the secretary on how excess funds were 80
reinvested to strengthen quality, invest in deferred maintenance and 81 Raised Bill No. 6612
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make asset improvements.] 82
Sec. 4. (NEW) (Effective July 1, 2023) A state agency that contracts with 83
a nonprofit private provider organization to provide health and human 84
services shall (1) provide an annual cost-of-living adjustment in 85
payment rates to such organization equal to the most recent percentage 86
increase in the consumer price index for urban consumers, (2) ensure 87
payment for such services not later than thirty days after delivery of 88
such services, and (3) identify and eliminate any administrative burdens 89
placed on such provider organization by any state agency practice or 90
procedure unless such practice or procedure is (A) necessary to prevent 91
fraud or misuse of funds, or (B) prescribed under federal law or 92
regulation for the use of federal funds. 93
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 New section
Sec. 2 July 1, 2023 New section
Sec. 3 July 1, 2023 4-216
Sec. 4 July 1, 2023 New section
Statement of Purpose:
To ensure nonprofit health and human services providers contracting
with state agencies may retain savings realized from contracted
amounts and receive adequate compensation.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]