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