Connecticut 2023 Regular Session

Connecticut Senate Bill SB01223 Compare Versions

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77 General Assembly Substitute Bill No. 1223
88 January Session, 2023
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1414 AN ACT CONCERNING THE STATE CONTRACTING STANDARDS
1515 BOARD.
1616 Be it enacted by the Senate and House of Representatives in General
1717 Assembly convened:
1818
1919 Section 1. (NEW) (Effective from passage) (a) Notwithstanding any 1
2020 provision of the general statutes, the appropriations recommended for 2
2121 the State Contracting Standards Board shall be the estimates of 3
2222 expenditure requirements transmitted to the Secretary of the Office of 4
2323 Policy and Management by the executive director of the board and the 5
2424 recommended adjustments and revisions of such estimates shall be the 6
2525 recommended adjustments and revisions, if any, transmitted by said 7
2626 executive director to the Office of Policy and Management. 8
2727 (b) Notwithstanding any provision of the general statutes, the 9
2828 Governor shall not reduce allotment requisitions or allotments in force 10
2929 concerning the State Contracting Standards Board. 11
3030 Sec. 2. Section 4e-1 of the general statutes is repealed and the 12
3131 following is substituted in lieu thereof (Effective July 1, 2023): 13
3232 For the purposes of this section and sections [4e-1] 4e-2 to 4e-47, 14
3333 inclusive, as amended by this act: 15
3434 (1) "Best value selection" means a contract selection process in which 16 Substitute Bill No. 1223
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4141 the award of a contract is based on a combination of quality, timeliness 17
4242 and cost factors; 18
4343 (2) "Bid" means an offer, submitted in response to an invitation to bid, 19
4444 to furnish supplies, materials, equipment, construction or contractual 20
4545 services to a state contracting agency under prescribed conditions at a 21
4646 stated price; 22
4747 (3) "Bidder" means a business submitting a bid in response to an 23
4848 invitation to bid by a state contracting agency; 24
4949 (4) "Business" means any individual or sole proprietorship, 25
5050 partnership, firm, corporation, trust, limited liability company, limited 26
5151 liability partnership, joint stock company, joint venture, association or 27
5252 other legal entity through which business for profit or not-for-profit is 28
5353 conducted; 29
5454 (5) "Competitive bidding" means the submission of prices by a 30
5555 business competing for a contract to provide supplies, materials, 31
5656 equipment or contractual services to a state contracting agency, under a 32
5757 procedure in which the contracting authority does not negotiate prices, 33
5858 as set forth in statutes and regulations concerning procurement; 34
5959 (6) "Consultant" means (A) any architect, professional engineer, 35
6060 landscape architect, land surveyor, accountant, interior designer, 36
6161 environmental professional or construction administrator, who is 37
6262 registered or licensed to practice such person's profession in accordance 38
6363 with the applicable provisions of the general statutes, (B) any planner or 39
6464 any environmental, management or financial specialist, or (C) any 40
6565 person who performs professional work in areas including, but not 41
6666 limited to, educational services, medical services, information 42
6767 technology and real estate appraisal; 43
6868 (7) "Consultant services" means those professional services rendered 44
6969 by a consultant and any incidental services that a consultant and those 45
7070 in the consultant's employ are authorized to perform; 46 Substitute Bill No. 1223
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7777 (8) "Contract" [or "state contract"] means an agreement or a 47
7878 combination or series of agreements between a state contracting agency 48
7979 [or quasi-public agency] and a business for: 49
8080 (A) A project for the construction, reconstruction, alteration, 50
8181 remodeling, repair or demolition of any public building, public work, 51
8282 mass transit, rail station, parking garage, rail track or airport; 52
8383 (B) Services, including, but not limited to, consultant and professional 53
8484 services; 54
8585 (C) The acquisition or disposition of personal property; 55
8686 (D) The provision of goods and services, including, but not limited 56
8787 to, the use of purchase of services contracts and personal service 57
8888 agreements; 58
8989 (E) The provision of information technology, state agency 59
9090 information system or telecommunication system facilities, equipment 60
9191 or services; 61
9292 (F) A lease; or 62
9393 (G) A licensing agreement; 63
9494 "Contract" [or "state contract"] does not include a contract between a 64
9595 state contracting agency [or a quasi-public agency] and a political 65
9696 subdivision of the state; 66
9797 (9) "Term contract" means the agreement reached when the state 67
9898 accepts a bid or proposal to furnish supplies, materials, equipment or 68
9999 contractual services at a stated price for a specific period of time in 69
100100 response to an invitation to bid; 70
101101 (10) "Contract risk assessment" means (A) the identification and 71
102102 evaluation of loss exposures and risks, including, but not limited to, 72
103103 business and legal risks associated with the contracting process and the 73
104104 contracted goods and services, and (B) the identification, evaluation and 74 Substitute Bill No. 1223
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111111 implementation of measures available to minimize potential loss 75
112112 exposures and risks; 76
113113 (11) "Contractor" means any business that is awarded, or is a 77
114114 subcontractor under, a contract or an amendment to a contract with a 78
115115 state contracting agency under statutes and regulations concerning 79
116116 procurement, including, but not limited to, a small contractor, minority 80
117117 business enterprise, an individual with a disability, as defined in section 81
118118 4a-60, or an organization providing products and services by persons 82
119119 with disabilities; 83
120120 (12) "Contractual services" means the furnishing of labor by a 84
121121 contractor, not involving the delivery of a specific end product other 85
122122 than reports, which are merely incidental to the required performance 86
123123 and includes any and all laundry and cleaning service, pest control 87
124124 service, janitorial service, security service, the rental and repair, or 88
125125 maintenance, of equipment, machinery and other [state-owned] 89
126126 personal property owned by a state contracting agency, advertising and 90
127127 photostating, mimeographing, human services and other service 91
128128 arrangements where the services are provided by persons other than 92
129129 state employees or quasi-public agency employees. "Contractual 93
130130 services" includes the design, development and implementation of 94
131131 technology, communications or telecommunications systems or the 95
132132 infrastructure pertaining thereto, including hardware and software and 96
133133 services for which a contractor is conferred a benefit by the state, 97
134134 whether or not compensated by the state. "Contractual services" does 98
135135 not include employment agreements or collective bargaining 99
136136 agreements; 100
137137 (13) "Data" means recorded information, regardless of form or 101
138138 characteristic; 102
139139 (14) "Vote of two-thirds of the members of the board present and 103
140140 voting" means a vote by the State Contracting Standards Board that is 104
141141 agreed upon by two-thirds of the members of the State Contracting 105
142142 Standards Board present and voting for a particular purpose and that 106 Substitute Bill No. 1223
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149149 includes the vote of one member of the board appointed by a legislative 107
150150 leader; 108
151151 (15) "Electronic" means electrical, digital, magnetic, optical, 109
152152 electromagnetic, or any other similar technology; 110
153153 (16) "Emergency procurement" means procurement by a state 111
154154 contracting agency, [quasi-public agency, as defined in section 1-120,] 112
155155 judicial department or constituent unit of higher education that is made 113
156156 necessary by a sudden, unexpected occurrence that poses a clear and 114
157157 imminent danger to public safety or requires immediate action to 115
158158 prevent or mitigate the loss or impairment of life, health, property or 116
159159 essential public services or in response to a court order, settlement 117
160160 agreement or other similar legal judgment; 118
161161 (17) "Equipment" means personal property of a durable nature that 119
162162 retains its identity throughout its useful life; 120
163163 (18) "Materials" means items required to perform a function or used 121
164164 in a manufacturing process, particularly those incorporated into an end 122
165165 product or consumed in its manufacture; 123
166166 (19) "Nonprofit agency" means any organization that is not a for-124
167167 profit business under Section 501(c)(3) of the Internal Revenue Code of 125
168168 1986, or any subsequent corresponding internal revenue code of the 126
169169 United States, as amended from time to time, [amended,] makes no 127
170170 distribution to its members, directors or officers and provides services 128
171171 contracted for by (A) the state or a quasi-public agency, or (B) a nonstate 129
172172 entity; 130
173173 (20) "Professional services" means any type of service to the public 131
174174 that requires that members of a profession rendering such service obtain 132
175175 a license or other legal authorization as a condition precedent to the 133
176176 rendition thereof, including, but not limited to, the professional services 134
177177 of architects, professional engineers, or jointly by architects and 135
178178 professional engineers, landscape architects, certified public 136
179179 accountants and public accountants, land surveyors, attorneys-at-law, 137 Substitute Bill No. 1223
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186186 psychologists, licensed marital and family therapists, licensed 138
187187 professional counselors and licensed clinical social workers as well as 139
188188 such other professional services described in section 33-182a; 140
189189 (21) "Privatization contract" means an agreement or series of 141
190190 agreements between a state contracting agency and a person or entity in 142
191191 which such person or entity agrees to provide services that are 143
192192 substantially similar to and in lieu of services provided, in whole or in 144
193193 part, by state employees or quasi-public agency employees, other than 145
194194 contracts with a nonprofit agency, which are in effect as of January 1, 146
195195 2009, and which through a renewal, modification, extension or 147
196196 rebidding of contracts continue to be provided by a nonprofit agency; 148
197197 (22) "Procurement" means contracting for, buying, purchasing, 149
198198 renting, leasing or otherwise acquiring or disposing of, any supplies, 150
199199 services, including but not limited to, contracts for purchase of services 151
200200 and personal service agreements, interest in real property, or 152
201201 construction, and includes all government functions that relate to such 153
202202 activities, including best value selection and qualification based 154
203203 selection; 155
204204 (23) "Proposer" means a business submitting a proposal to a state 156
205205 contracting agency in response to a request for proposals or other 157
206206 competitive sealed proposal; 158
207207 (24) "Public record" means a public record, as defined in section 1-159
208208 200; 160
209209 (25) "Qualification based selection" means a contract selection process 161
210210 in which the award of a contract is primarily based on an assessment of 162
211211 contractor qualifications and on the negotiation of a fair and reasonable 163
212212 price; 164
213213 (26) "Regulation" means regulation, as defined in section 4-166; 165
214214 (27) "Request for proposals" means all documents, whether attached 166
215215 or incorporated by reference, utilized for soliciting proposals; 167 Substitute Bill No. 1223
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222222 (28) "State contracting agency" means any executive branch agency, 168
223223 board, commission, department, office, institution, [or] council or quasi-169
224224 public agency. "State contracting agency" does not include the judicial 170
225225 branch, the legislative branch, the offices of the Secretary of the State, 171
226226 the State Comptroller, the Attorney General, the State Treasurer, with 172
227227 respect to their constitutional functions, any state agency with respect 173
228228 to contracts specific to the constitutional and statutory functions of the 174
229229 office of the State Treasurer. For the purposes of section 4e-16, as 175
230230 amended by this act, "state contracting agency" includes any constituent 176
231231 unit of the state system of higher education and [for the purposes of 177
232232 section 4e-19, "state contracting agency" includes the State Education 178
233233 Resource Center, established under section 10-4q] The University of 179
234234 Connecticut Health Center Finance Corporation; 180
235235 (29) "Subcontractor" means a subcontractor of a contractor for work 181
236236 under a contract or an amendment to a contract; 182
237237 (30) "Supplies" means any and all articles of personal property, 183
238238 including, but not limited to, equipment, materials, printing, insurance 184
239239 and leases of real property, excluding land or a permanent interest in 185
240240 land furnished to or used by any state agency; 186
241241 (31) "Infrastructure facility" means a building, structure or network 187
242242 of buildings, structures, pipes, controls and equipment that provide 188
243243 transportation, utilities, public education or public safety services. 189
244244 [Infrastructure facility] "Infrastructure facility" includes government 190
245245 office buildings, public schools, jails, water treatment plants, 191
246246 distribution systems and pumping stations, wastewater treatment 192
247247 plants, collections systems and pumping stations, solid waste disposal 193
248248 plants, incinerators, landfills, and related facilities, public roads and 194
249249 streets, highways, public parking facilities, public transportation 195
250250 systems, terminals and rolling stock, rail, air and water port structures, 196
251251 terminals and equipment; [and] 197
252252 (32) "State employee" means state employee, as defined in section 5-198
253253 154 and, for purposes of section 4e-16, as amended by this act, [state 199 Substitute Bill No. 1223
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260260 employee] "state employee" includes an employee of any state 200
261261 contracting agency that is not a quasi-public agency; and 201
262262 (33) "Quasi-public agency" has the same meaning as provided in 202
263263 section 1-120. 203
264264 Sec. 3. Subsections (g) and (h) of section 4e-2 of the general statutes 204
265265 are repealed and the following is substituted in lieu thereof (Effective July 205
266266 1, 2023): 206
267267 (g) The board shall appoint a Chief Procurement Officer for a term 207
268268 not to exceed six years, unless reappointed pursuant to the provisions 208
269269 of this subsection. The Chief Procurement Officer shall report to the 209
270270 board and annually be evaluated by, and serve at the pleasure of, the 210
271271 board. For administrative purposes only, the Chief Procurement Officer 211
272272 shall be supervised by the executive director. 212
273273 (1) The Chief Procurement Officer shall be responsible for carrying 213
274274 out the policies of the board relating to procurement including, but not 214
275275 limited to, oversight, investigation, auditing, agency procurement 215
276276 certification and procurement and project management training and 216
277277 enforcement of [said] such policies as well as the application of such 217
278278 policies to the screening and evaluation of current and prospective 218
279279 contractors. The Chief Procurement Officer may enter into such 219
280280 contractual agreements as may be necessary for the discharge of the 220
281281 duties as set forth in this subsection and by the board, including, but not 221
282282 limited to, recommending best practices and providing operational and 222
283283 administrative assistance to state agencies determined, by the board, to 223
284284 be in violation of sections 4e-16 to 4e-47, inclusive, as amended by this 224
285285 act. 225
286286 (2) In addition to the duties set forth by the board, the Chief 226
287287 Procurement Officer shall (A) oversee state contracting agency 227
288288 compliance with the provisions of statutes and regulations concerning 228
289289 procurement; (B) monitor and assess the performance of the 229
290290 procurement duties of each agency procurement officer; (C) administer 230 Substitute Bill No. 1223
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297297 the certification system and monitor the level of agency compliance with 231
298298 the requirements of statutes and regulations concerning procurement, 232
299299 including, but not limited to, the education and training, performance 233
300300 and qualifications of agency procurement officers; (D) review and 234
301301 monitor the procurement processes of each state contracting agency [, 235
302302 quasi-public agencies] and institutions of higher education; and (E) 236
303303 serve as chairperson of the Contracting Standards Advisory Council 237
304304 and an ex-officio member of the Vendor and Citizen Advisory Panel. 238
305305 (h) The board may contract with consultants and professionals on a 239
306306 temporary or project by project basis, and [may] shall employ, subject 240
307307 to the provisions of chapter 67, [such] not less than five full-time 241
308308 employees and may employ additional employees as may be necessary 242
309309 to carry out the provisions of this section. 243
310310 Sec. 4. Subdivision (2) of subsection (a) of section 4e-3 of the general 244
311311 statutes is repealed and the following is substituted in lieu thereof 245
312312 (Effective July 1, 2023): 246
313313 (2) Any state contracting agency's contracting and procurement 247
314314 processes, including, but not limited to, leasing and property transfers, 248
315315 purchasing or leasing of supplies, materials or equipment, consultant or 249
316316 consultant services, purchase of service agreements or privatization 250
317317 contracts; and 251
318318 Sec. 5. Section 4e-4 of the general statutes is repealed and the 252
319319 following is substituted in lieu thereof (Effective July 1, 2023): 253
320320 Except as otherwise provided in the general statutes, the board shall 254
321321 have the following authority and responsibilities with respect to 255
322322 procurements by state contracting agencies: 256
323323 [(a)] (1) Recommend the repeal of repetitive, conflicting or obsolete 257
324324 statutes concerning [state] procurement; 258
325325 [(b)] (2) Review and make recommendations concerning proposed 259
326326 legislation and regulations concerning procurement, management, 260 Substitute Bill No. 1223
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333333 control, and disposal of any and all supplies, services, and construction 261
334334 to be procured by [the] state contracting agencies, including, but not 262
335335 limited to: 263
336336 [(1)] (A) Conditions and procedures for delegation of procurement 264
337337 authority; 265
338338 [(2)] (B) Prequalification, suspension, debarment and reinstatement 266
339339 of prospective bidders and contractors; 267
340340 [(3)] (C) Small purchase procedures; 268
341341 [(4)] (D) Conditions and procedures for the procurement of 269
342342 perishables and items for resale; 270
343343 [(5)] (E) Conditions and procedures for the use of source selection 271
344344 methods authorized by statutes and regulations concerning 272
345345 procurement; 273
346346 [(6)] (F) Conditions and procedures for the use of emergency 274
347347 procurements; 275
348348 [(7)] (G) Conditions and procedures for the selection of contractors by 276
349349 processes or methods that restrict full and open competition; 277
350350 [(8)] (H) The opening or rejection of bids and offers, and waiver of 278
351351 errors in bids and offers; 279
352352 [(9)] (I) Confidentiality of technical data and trade secrets submitted 280
353353 by actual or prospective bidders; 281
354354 [(10)] (J) Partial, progressive and multiple awards; 282
355355 [(11)] (K) Supervision of storerooms and inventories, including 283
356356 determination of appropriate stock levels and the management, 284
357357 transfer, sale or other disposal of publicly-owned supplies; 285
358358 [(12)] (L) Definitions and classes of contractual services and 286 Substitute Bill No. 1223
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365365 procedures for acquiring such services; 287
366366 [(13)] (M) Regulations providing for conducting cost and price 288
367367 analysis; 289
368368 [(14)] (N) Use of payment and performance bonds; 290
369369 [(15)] (O) Guidelines for use of cost principles in negotiations, 291
370370 adjustments and settlements; and 292
371371 [(16)] (P) Identification of procurement best practices; 293
372372 [(c)] (3) Adopt regulations, pursuant to chapter 54, to carry out the 294
373373 provisions of statutes concerning procurement, in order to facilitate 295
374374 consistent application of the law and require the implementation of 296
375375 procurement best practices; 297
376376 [(d)] (4) Make recommendations with regard to information systems 298
377377 for [state] procurement including, but not limited to, data element and 299
378378 design and the State Contracting Portal; 300
379379 [(e)] (5) Develop a guide to state statutes and regulations concerning 301
380380 procurement, for use by all state contracting agencies; 302
381381 [(f)] (6) Assist state contracting agencies in complying with the 303
382382 statutes and regulations concerning procurement by providing 304
383383 guidance, models, advice and practical assistance to state contracting 305
384384 agency staff relating to: [(1)] (A) Buying the best service at the best price, 306
385385 [(2)] (B) properly selecting contractors, and [(3)] (C) drafting contracts 307
386386 that achieve state goals of accountability, transparency and results 308
387387 based outcomes and to protect taxpayers' interest; 309
388388 [(g)] (7) Train and oversee the agency procurement officer of each 310
389389 state contracting agency and any contracting officers thereunder; 311
390390 [(h)] (8) Review and certify, on or after January 1, 2009, that a state 312
391391 contracting agency's procurement processes are in compliance with 313
392392 statutes and regulations concerning procurement by: 314 Substitute Bill No. 1223
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399399 [(1)] (A) Establishing procurement and project management 315
400400 education and training criteria and certification procedures for agency 316
401401 procurement officers and contracting officers. All agency procurement 317
402402 officers and contracting officers designated under this [provision] 318
403403 subparagraph shall be required to maintain the certification in good 319
404404 standing at all times while performing procurement functions; 320
405405 [(2)] (B) Approving an ethics training course, in consultation with the 321
406406 Office of State Ethics, including, but not limited to, state employees and 322
407407 quasi-public agency employees involved in procurement and for state 323
408408 contractors and substantial subcontractors who are prequalified 324
409409 pursuant to chapter 58a. Such ethics training course may be developed 325
410410 and provided by the Office of State Ethics or by any person, firm or 326
411411 corporation provided such course is approved by the State Contracting 327
412412 Standards Board; 328
413413 [(i)] (9) Recertify each state contracting agency's procurement 329
414414 processes, triennially, and provide agencies with notice of any 330
415415 certification deficiency and exercise those powers authorized by section 331
416416 4e-34, as amended by this act, 4e-39 or 4e-40, as amended by this act, as 332
417417 applicable, if a determination of noncompliance is made; 333
418418 [(j)] (10) Define the contract data reporting requirements to the board 334
419419 for state contracting agencies concerning information on: [(1)] (A) The 335
420420 number and type of [state] contracts of each state contracting agency 336
421421 currently in effect state-wide; [(2)] (B) the term and dollar value of such 337
422422 contracts; [(3)] (C) a list of client agencies; [(4)] (D) a description of 338
423423 services purchased under such contracts; [(5)] (E) contractor names; [(6)] 339
424424 (F) an evaluation of contractor performance, including, but not limited 340
425425 to records pertaining to the suspension or disqualification of 341
426426 contractors, and assuring such information is available on the State 342
427427 Contracting Portal; and [(7)] (G) a list of contracts and contractors 343
428428 awarded without full and open competition stating the reasons [for] 344
429429 therefor and identifying the approving authority; and 345
430430 [(k)] (11) Provide the Governor and the joint standing committee of 346 Substitute Bill No. 1223
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437437 the General Assembly having cognizance of matters relating to 347
438438 government administration with recommendations concerning the 348
439439 statutes and regulations concerning procurement. 349
440440 Sec. 6. Subsections (a) to (c), inclusive, of section 4e-5 of the general 350
441441 statutes are repealed and the following is substituted in lieu thereof 351
442442 (Effective July 1, 2023): 352
443443 (a) (1) The head of each state contracting agency shall appoint an 353
444444 agency procurement officer. Such officer shall serve as the liaison 354
445445 between the agency and the Chief Procurement Officer on all matters 355
446446 relating to the agency's procurement activity, including, but not limited 356
447447 to, implementation and compliance with the provisions of statutes and 357
448448 regulations concerning procurement and any policies or regulations 358
449449 adopted by the board, coordination of the training and education of 359
450450 agency procurement employees and any person serving on the 360
451451 Contracting Standards Advisory Council; 361
452452 (2) The agency procurement officer shall be responsible for (A) 362
453453 ensuring that any invitation to bid, request for proposals or any other 363
454454 solicitation for goods and services issued on or after July 1, 2023, 364
455455 contains a notice of the rights of prospective bidders, proposers or 365
456456 prospective contractors under sections 4e-36, 4e-39 and 4e-40, as 366
457457 amended by this act, (B) assuring that contractors are properly screened 367
458458 prior to the award of a contract, (C) ensuring contractors are advised of 368
459459 their rights under sections 4e-36, 4e-39 and 4e-40, as amended by this 369
460460 act, prior to entering into a contract on or after July 1, 2023, (D) ensuring 370
461461 that, upon the award of such a contract, unsuccessful bidders, proposers 371
462462 or respondents are advised of their rights under sections 4e-36, 4e-39 372
463463 and 4e-40, as amended by this act, (E) evaluating contractor 373
464464 performance during and at the conclusion of a contract, (F) submitting 374
465465 written evaluations to a central data repository to be designated by the 375
466466 board, and (G) creating a project management plan for the agency with 376
467467 annual reports to the board pertaining to procurement projects within 377
468468 the agency. 378 Substitute Bill No. 1223
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475475 (b) The State Contracting Standards Board, with the advice and 379
476476 assistance of the Commissioner of Administrative Services, shall 380
477477 develop a standardized state procurement and project management 381
478478 education and training program. Such education and training program 382
479479 shall develop education, training and professional development 383
480480 opportunities for employees of state contracting agencies charged with 384
481481 procurement responsibilities. The education and training program shall 385
482482 educate such employees in general business acumen and on proper 386
483483 purchasing procedures as established in statutes and regulations 387
484484 concerning procurement with an emphasis on ethics, fairness, 388
485485 consistency and project management. Participation in the education and 389
486486 training program shall be required of any supervisory and 390
487487 nonsupervisory [state] employees in state contracting agencies with 391
488488 responsibility for buying, purchasing, renting, leasing or otherwise 392
489489 acquiring any supplies, service or construction, including the 393
490490 preparation of the description of requirements, selection and solicitation 394
491491 of sources, preparation and award of contracts and all phases of contract 395
492492 administration. 396
493493 (c) The state procurement and project management education and 397
494494 training program shall include, but shall not be limited to (1) training 398
495495 and education concerning federal, state and municipal procurement 399
496496 processes, including the statutes and regulations concerning 400
497497 procurement; (2) training and education courses developed in 401
498498 cooperation with the Office of State Ethics, the Freedom of Information 402
499499 Commission, the State Elections Enforcement Commission, the 403
500500 Commission on Human Rights and Opportunities, the office of the 404
501501 Attorney General and any other state agency the board determines is 405
502502 necessary in carrying out statutes and regulations concerning 406
503503 procurement; (3) providing technical assistance to state contracting 407
504504 agencies and municipalities for implementing statutes and regulations 408
505505 concerning procurement, regulations, policies and standards developed 409
506506 by the board; (4) training to current and prospective contractors and 410
507507 vendors and others seeking to do business with [the] state contracting 411
508508 agencies; and (5) training and education of state employees and quasi-412 Substitute Bill No. 1223
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515515 public agency employees in the area of best procurement practices in 413
516516 [state] purchasing with the goal of achieving the level of acumen 414
517517 necessary to achieve the objectives of statutes and regulations 415
518518 concerning procurement. 416
519519 Sec. 7. Subsection (a) of section 4e-7 of the general statutes is repealed 417
520520 and the following is substituted in lieu thereof (Effective July 1, 2023): 418
521521 (a) For cause, the State Contracting Standards Board may review, 419
522522 terminate or recommend to a state contracting agency the termination 420
523523 of any contract or procurement agreement undertaken by any state 421
524524 contracting agency after providing fifteen days' notice to the state 422
525525 contracting agency and the applicable contractor, and consulting with 423
526526 the Attorney General. Such termination of a contract or procurement 424
527527 agreement by the board may occur only after (1) the board has consulted 425
528528 with the state contracting agency to determine the impact of an 426
529529 immediate termination of the contract, (2) a determination has been 427
530530 made jointly by the board and the state contracting agency that an 428
531531 immediate termination of the contract will not create imminent peril to 429
532532 the public health, safety or welfare, (3) a vote of two-thirds of the 430
533533 members of the board present and voting for that purpose, and (4) the 431
534534 board has provided the state contracting agency and the contractor with 432
535535 opportunity for a hearing conducted pursuant to the provisions of 433
536536 chapter 54. Such action shall be accompanied by notice to the state 434
537537 contracting agency and any other affected party. For the purpose of this 435
538538 section, "for cause" means: (A) A violation of section 1-84 or 1-86e, as 436
539539 determined by the Citizen's Ethics Advisory Board; (B) wanton or 437
540540 reckless disregard of any state or quasi-public agency contracting and 438
541541 procurement process by any person substantially involved in such 439
542542 contract or state contracting agency; or (C) notification from the 440
543543 Attorney General to the state contracting agency that an investigation 441
544544 pursuant to section 4-61dd has concluded that the process by which 442
545545 such contract was awarded was compromised by fraud, collusion or any 443
546546 other criminal violation. Nothing in this section shall be construed to 444
547547 limit the authority of the board as described in section 4e-6. 445 Substitute Bill No. 1223
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554554 Sec. 8. Section 4e-8 of the general statutes is repealed and the 446
555555 following is substituted in lieu thereof (Effective July 1, 2023): 447
556556 There is established a Contracting Standards Advisory Council, 448
557557 which shall consist of representatives from the Office of Policy and 449
558558 Management, Departments of Administrativ e Services and 450
559559 Transportation, [and] representatives of at least three additional state 451
560560 contracting agencies, including at least one human services related state 452
561561 agency, to be designated by the Governor, and at least four additional 453
562562 state contracting agencies that are quasi-public agencies, two to be 454
563563 appointed by the speaker of the House of Representatives and two to be 455
564564 appointed by the president pro tempore of the Senate. The Chief 456
565565 Procurement Officer shall be a member of the council and serve as 457
566566 chairperson. The advisory council shall meet at least four times per year 458
567567 to discuss [state] procurement issues and to make recommendations for 459
568568 improvement of the procurement processes to the State Contracting 460
569569 Standards Board. The advisory council may conduct studies, research 461
570570 and analyses and make reports and recommendations with respect to 462
571571 subjects or matters within the jurisdiction of the State Contracting 463
572572 Standards Board. 464
573573 Sec. 9. Subsection (a) of section 4e-10 of the general statutes is 465
574574 repealed and the following is substituted in lieu thereof (Effective July 1, 466
575575 2023): 467
576576 (a) On or before July 1, 2010, the board shall submit to the Governor 468
577577 and the General Assembly such legislation as is necessary to permit state 469
578578 contracting agencies, not including [quasi-publics] quasi-public 470
579579 agencies, institutions of higher education, and municipal procurement 471
580580 processes utilizing state funds, to carry out their functions under 472
581581 statutes and regulations concerning procurement. 473
582582 Sec. 10. Section 4e-14 of the general statutes is repealed and the 474
583583 following is substituted in lieu thereof (Effective July 1, 2023): 475
584584 On and after June 1, 2010, all [state] contracts of each state contracting 476 Substitute Bill No. 1223
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590590
591591 agency that is not a quasi-public agency that take effect on or after June 477
592592 1, 2010, shall contain provisions to ensure accountability, transparency 478
593593 and [results based] results-based outcomes, as prescribed by the State 479
594594 Contracting Standards Board. On and after June 1, 2010, all state 480
595595 contracts of the legislative branch and the judicial branch that take effect 481
596596 on or after June 1, 2010, shall contain provisions to ensure 482
597597 accountability, transparency and [results based] results-based 483
598598 outcomes. On and after July 1, 2023, all contracts of each state 484
599599 contracting agency that is a quasi-public agency that take effect on or 485
600600 after July 1, 2023, shall contain provisions to ensure accountability, 486
601601 transparency and results-based outcomes. 487
602602 Sec. 11. Subsections (c) and (d) of section 4e-16 of the general statutes 488
603603 are repealed and the following is substituted in lieu thereof (Effective July 489
604604 1, 2023): 490
605605 (c) (1) If such cost-benefit analysis identifies a cost savings to the state 491
606606 contracting agency of ten per cent or more, and such privatization 492
607607 contract will not diminish the quality of such service, the state 493
608608 contracting agency shall develop a business case, in accordance with the 494
609609 provisions of subsection (d) of this section, in order to evaluate the 495
610610 feasibility of entering into any such contract and to identify the potential 496
611611 results, effectiveness and efficiency of such contract. 497
612612 (2) If such cost-benefit analysis identifies a cost savings of less than 498
613613 ten per cent to the state contracting agency and such privatization 499
614614 contract will not diminish the quality of such service, the state 500
615615 contracting agency may develop a business case, in accordance with the 501
616616 provisions of subsection (d) of this section, in order to evaluate the 502
617617 feasibility of entering into any such contract and to identify the potential 503
618618 results, effectiveness and efficiency of such contract, provided there is a 504
619619 significant public policy reason to enter into such privatization contract. 505
620620 Any such business case shall be approved in accordance with the 506
621621 provisions of subdivision (4) of subsection (h) of this section. 507
622622 (3) If any such proposed privatization contract would result in the 508 Substitute Bill No. 1223
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629629 layoff, transfer or reassignment of one hundred or more state 509
630630 contracting agency employees, after consulting with the potentially 510
631631 affected bargaining units, if any, the state contracting agency shall notify 511
632632 the state employees or quasi-public agency employees of such 512
633633 bargaining unit, as applicable, after such cost-benefit analysis is 513
634634 completed. Such state contracting agency shall provide an opportunity 514
635635 for [said] such employees to reduce the costs of conducting the 515
636636 operations to be privatized and provide reasonable resources for the 516
637637 purpose of encouraging and assisting such [state] employees to organize 517
638638 and submit a bid to provide the services that are the subject of the 518
639639 potential privatization contract. The state contracting agency shall retain 519
640640 sole discretion in determining whether to proceed with the privatization 520
641641 contract, provided the business case for such contract is approved by the 521
642642 board. 522
643643 (d) Any business case developed by a state contracting agency for the 523
644644 purpose of complying with subsection (c) of this section shall include: 524
645645 (1) The cost-benefit analysis as described in subsection (b) of this section, 525
646646 (2) a detailed description of the service or activity that is the subject of 526
647647 such business case, (3) a description and analysis of the state contracting 527
648648 agency's current performance of such service or activity, (4) the goals to 528
649649 be achieved through the proposed privatization contract and the 529
650650 rationale for such goals, (5) a description of available options for 530
651651 achieving such goals, (6) an analysis of the advantages and 531
652652 disadvantages of each option, including, at a minimum, potential 532
653653 performance improvements and risks attendant to termination of the 533
654654 contract or rescission of such contract, (7) an analysis of the potential 534
655655 impact of the proposed privatization contract on workers of color and 535
656656 workers who are women, including whether such privatization contract 536
657657 will lessen or increase historical patterns that produce inequities 537
658658 between such workers and other workers, (8) a description of the 538
659659 current market for the services or activities that are the subject of such 539
660660 business case, [(8)] (9) an analysis of the quality of services as gauged by 540
661661 standardized measures and key performance requirements including 541
662662 compensation, turnover, and staffing ratios, [(9)] (10) a description of 542 Substitute Bill No. 1223
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669669 the specific results-based performance standards that shall, at a 543
670670 minimum be met, to ensure adequate performance by any party 544
671671 performing such service or activity, [(10)] (11) the projected time frame 545
672672 for key events from the beginning of the procurement process through 546
673673 the expiration of a contract, if applicable, [(11)] (12) a specific and 547
674674 feasible contingency plan that addresses contractor nonperformance 548
675675 and a description of the tasks involved in and costs required for 549
676676 implementation of such plan, and [(12)] (13) a transition plan, if 550
677677 appropriate, for addressing changes in the number of agency personnel, 551
678678 affected business processes, employee transition issues, and 552
679679 communications with affected stakeholders, such as agency clients and 553
680680 members of the public, if applicable. Such transition plan shall contain 554
681681 a reemployment and retraining assistance plan for employees who are 555
682682 not retained by the state or a quasi-public agency or employed by the 556
683683 contractor. If the primary purpose of the proposed privatization 557
684684 contract is to provide a core governmental function, such business case 558
685685 shall also include information sufficient to rebut the presumption that 559
686686 such core governmental function should not be privatized. Such 560
687687 presumption shall not be construed to prohibit a state contracting 561
688688 agency from contracting for specialized technical expertise not available 562
689689 within such agency, provided such agency shall retain responsibility for 563
690690 such core governmental function. For the purposes of this section, "core 564
691691 governmental function" means a function for which the primary 565
692692 purpose is (A) the inspection for adherence to health and safety 566
693693 standards because public health or safety may be jeopardized if such 567
694694 inspection is not done or is not done in a timely or proper manner, (B) 568
695695 the establishment of statutory, regulatory or contractual standards to 569
696696 which a regulated person, entity or state contractor shall be held, (C) the 570
697697 enforcement of statutory, regulatory or contractual requirements 571
698698 governing public health or safety, [or] (D) criminal or civil law 572
699699 enforcement, or (E) the provision of essential human services to 573
700700 residents of the state who would otherwise lack the support necessary 574
701701 to assure basic human needs. If any part of such business case is based 575
702702 upon evidence that the state contracting agency is not sufficiently 576
703703 staffed to provide the core governmental function required by the 577 Substitute Bill No. 1223
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710710 privatization contract, the state contracting agency shall also include 578
711711 within such business case a plan for remediation of the understaffing to 579
712712 allow such services to be provided directly by the state contracting 580
713713 agency in the future. 581
714714 Sec. 12. Subdivisions (2) to (4), inclusive, of subsection (l) of section 582
715715 4e-16 of the general statutes are repealed and the following is 583
716716 substituted in lieu thereof (Effective July 1, 2023): 584
717717 (2) If such cost-benefit analysis identifies a ten per cent or more cost 585
718718 savings to the state contracting agency from the use of such 586
719719 privatization contract and such contract does not diminish the quality 587
720720 of the service provided, such state contracting agency shall develop a 588
721721 business case for the renewal of such privatization contract in 589
722722 accordance with the provisions of subsections (d) and (e) of this section. 590
723723 The board shall review such contract in accordance with the provisions 591
724724 of subsections (f) to (h), inclusive, of this section and may approve such 592
725725 renewal by the applicable vote of the board, provided any such renewal 593
726726 that is estimated to cost in excess of one hundred fifty million dollars 594
727727 annually or six hundred million dollars or more over the life of the 595
728728 contract shall also be approved by the General Assembly prior to the 596
729729 state contracting agency renewing such contract. If such renewal is 597
730730 approved by the board and the General Assembly, if applicable, the 598
731731 provisions of subsection (j) of this section shall apply to any proposed 599
732732 amendment to such contract. 600
733733 (3) If such cost-benefit analysis identifies a cost savings to the state 601
734734 contracting agency of less than ten per cent, such state contracting 602
735735 agency shall prepare a plan to have such service provided by state 603
736736 employees [and] or, in the case of a state contracting agency that is a 604
737737 quasi-public agency, the employees of such quasi-public agency, shall 605
738738 begin to implement such plan, provided: (A) While such plan is 606
739739 prepared, but prior to implementation of such plan, such state 607
740740 contracting agency may develop a business case for such privatization 608
741741 contract, in accordance with the provisions of subsection (d) of this 609
742742 section, that achieves a cost savings to the state of ten per cent or more. 610 Substitute Bill No. 1223
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749749 Any such business case shall be reviewed by the board in accordance 611
750750 with the provisions of subsections (f) to (h), inclusive, of this section, and 612
751751 may be approved by the applicable vote of the board; (B) such 613
752752 privatization contract shall not be renewed with the vendor currently 614
753753 providing such service unless: (i) There exists a significant public 615
754754 interest in renewing such contract, and (ii) such renewal is approved by 616
755755 a two-thirds vote of the board; (C) the state contracting agency may 617
756756 enter into a contract with a term of one year or less for the provision of 618
757757 such service until such state contracting agency implements such plan; 619
758758 and (D) the procedure for the transfer of funds from the General Fund, 620
759759 as described in section 4-94, may be utilized to allocate necessary 621
760760 resources for the implementation of the provisions of this subdivision. 622
761761 (4) Notwithstanding the provisions of subdivision (3) of this 623
762762 subsection, the renewal of a privatization contract with a nonprofit 624
763763 organization shall not be denied if the cost of increasing compensation 625
764764 to employees performing the privatized service is the sole cause for such 626
765765 contract not achieving a cost savings to the state contracting agency of 627
766766 ten per cent or more. 628
767767 Sec. 13. Subsection (n) of section 4e-16 of the general statutes is 629
768768 repealed and the following is substituted in lieu thereof (Effective July 1, 630
769769 2023): 631
770770 (n) The State Contracting Standards Board, in consultation with the 632
771771 Department of Administrative Services, shall: (1) Recommend and 633
772772 implement standards and procedures for state contracting agencies to 634
773773 develop business cases in connection with privatization contracts, 635
774774 including templates for use by state contracting agencies when 636
775775 submitting business cases to the board, and policies and procedures to 637
776776 guide state contracting agencies to complete such business cases, and (2) 638
777777 develop guidelines and procedures for assisting state employees or 639
778778 quasi-public agency employees whose jobs are affected by a 640
779779 privatization contract. 641
780780 Sec. 14. Subsection (p) of section 4e-16 of the general statutes is 642 Substitute Bill No. 1223
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786786
787787 repealed and the following is substituted in lieu thereof (Effective July 1, 643
788788 2023): 644
789789 (p) Prior to entering into or renewing any privatization contract that 645
790790 is not subject to the provisions of subsection (a) of this section, the state 646
791791 contracting agency shall evaluate such contract to determine if entering 647
792792 into or renewing such contract is the most cost-effective method of 648
793793 delivering the service, by determining the costs, as defined in subsection 649
794794 (b) of this section, of such service. The state contracting agency shall 650
795795 perform such evaluation in accordance with a template prescribed by 651
796796 the Secretary of the Office of Policy and Management, in consultation 652
797797 with the board, pursuant to subsection (m) of this section, and such 653
798798 evaluation shall be subject to verification by the [secretary] board. The 654
799799 [secretary] board may waive the requirement for an evaluation of cost-655
800800 effectiveness under this subsection upon a finding by the [secretary] 656
801801 board that exigent or emergent circumstances necessitate such waiver. 657
802802 Sec. 15. Section 4e-17 of the general statutes is repealed and the 658
803803 following is substituted in lieu thereof (Effective July 1, 2023): 659
804804 (a) Except as otherwise provided, the provisions of sections 4e-16 to 660
805805 4e-47, inclusive, as amended by this act, shall apply to all contracts 661
806806 solicited or entered into by [state contracting agencies] a state 662
807807 contracting agency that is a state agency after June 1, 2010, and all 663
808808 contracts solicited or entered into by a state contracting agency that is a 664
809809 quasi-public agency on or after July 1, 2023. 665
810810 (b) Except as otherwise provided, the provisions of sections 4e-16 to 666
811811 4e-47, inclusive, as amended by this act, shall apply to every 667
812812 expenditure of public funds by any state contracting agency, 668
813813 irrespective of their source, involving any state or quasi-public agency 669
814814 contracting and procurement processes, including, but not limited to, 670
815815 leasing and property transfers, purchasing or leasing of supplies, 671
816816 materials or equipment, consultant or consultant services, personal 672
817817 service agreements, purchase of service agreements or privatization 673
818818 contracts, as defined in section 4e-1, as amended by this act, and, 674 Substitute Bill No. 1223
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824824
825825 relating to contracts for the construction, reconstruction, alteration, 675
826826 remodeling, repair or demolition of any public building, bridge or road. 676
827827 (c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this 677
828828 act, shall be construed to require the application of procurement statutes 678
829829 or regulations to a procurement that involves the expenditure of federal 679
830830 assistance or federal contract funds if federal law provides procurement 680
831831 procedures applicable to the expenditure of such funds, to the extent 681
832832 such federal procedures are inconsistent with state procurement 682
833833 statutes or regulations. 683
834834 Sec. 16. Section 4e-18 of the general statutes is repealed and the 684
835835 following is substituted in lieu thereof (Effective July 1, 2023): 685
836836 For the purpose of obtaining supplies, materials, equipment or 686
837837 contractual services, except infrastructure facilities, the Commissioner 687
838838 of Administrative Services shall establish a requisition system to be used 688
839839 by state contracting agencies that are not quasi-public agencies to 689
840840 initiate and authorize the procurement process. Such system shall be 690
841841 approved by the State Contracting Standards Board. 691
842842 Sec. 17. Subsection (c) of section 4e-21 of the general statutes is 692
843843 repealed and the following is substituted in lieu thereof (Effective July 1, 693
844844 2023): 694
845845 (c) The State Contracting Standards Board, in consultation with the 695
846846 Commissioner of Administrative Services, may waive the requirement 696
847847 of competitive bidding or competitive negotiation in the case of minor, 697
848848 nonrecurring or emergency purchases of ten thousand dollars or less in 698
849849 amount, upon application of the state contracting agency. Any state 699
850850 contracting agency that obtains such a waiver for such an emergency 700
851851 purchase shall post notice of such emergency purchase on the Internet 701
852852 web site of the state contracting agency prior to making such emergency 702
853853 purchase. 703
854854 Sec. 18. Section 4e-24 of the general statutes is repealed and the 704
855855 following is substituted in lieu thereof (Effective July 1, 2023): 705 Substitute Bill No. 1223
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862862 (a) [Not later than June 1, 2010, the State Contracting Standards 706
863863 Board, in consultation with the Commissioner of Administrative 707
864864 Services and any other appropriate award authority, shall adopt 708
865865 regulations, in accordance with the provisions of chapter 54, permitting] 709
866866 If an emergency [procurements when there exists] procurement is 710
867867 deemed necessary by a state contracting agency due to a threat to public 711
868868 health, welfare or safety, the state contracting agency shall give notice 712
869869 to the board of the need for such emergency procurement. Such 713
870870 emergency procurements shall be made with competition, as is 714
871871 practicable under the circumstances. [Said regulations shall require that] 715
872872 The state contracting agency shall (1) include a written determination of 716
873873 the basis for the emergency and for the selection of the particular 717
874874 contractor [be included] in the contract file and [transmitted] transmit 718
875875 such determination to the Governor, the president pro tempore of the 719
876876 Senate, the majority and minority leaders of the Senate, the speaker of 720
877877 the House of Representatives and the majority and minority leaders of 721
878878 the House of Representatives, and (2) post such determination on the 722
879879 Internet web site of the state contracting agency. 723
880880 (b) The State Contracting Standards Board may adopt regulations in 724
881881 accordance with the provisions of chapter 54 to implement the 725
882882 provisions of this section. 726
883883 Sec. 19. Subsection (d) of section 4b-51 of the general statutes is 727
884884 repealed and the following is substituted in lieu thereof (Effective July 1, 728
885885 2023): 729
886886 (d) (1) Notwithstanding any provision of the general statutes, the 730
887887 Commissioner of Administrative Services may select consultants to be 731
888888 on a list established for the purpose of providing any consultant 732
889889 services. Such list shall be established as provided in sections 4b-56 and 733
890890 4b-57, as amended by this act. [The] In the case of an emergency 734
891891 procurement due to a threat to public health, welfare or safety, the 735
892892 commissioner may enter into a contract with any consultant on such list 736
893893 without inviting responses from such consultants to perform a range of 737
894894 consultant services or to perform a range of tasks pursuant to a task 738 Substitute Bill No. 1223
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900900
901901 letter detailing services to be performed under such contract. 739
902902 (2) Notwithstanding any provision of the general statutes, the 740
903903 Commissioner of Administrative Services may (A) compile a list of 741
904904 architects, professional engineers and construction administrators for 742
905905 the limited purpose of providing consultant services for a particular 743
906906 program involving various projects for the construction of new 744
907907 buildings or renovations to existing buildings where such buildings are 745
908908 under the operation and control of either the Military Department or the 746
909909 Department of Energy and Environmental Protection, and (B) in the case 747
910910 of an emergency procurement due to a threat to public health, welfare 748
911911 or safety, enter into a contract with any architect, professional engineer 749
912912 or construction administrator on such list for such limited purpose 750
913913 without inviting responses from the persons on such list, except that the 751
914914 Adjutant General may perf orm the functions described in 752
915915 subparagraphs (A) and (B) of this subdivision for any such building 753
916916 under the operation and control of the Military Department. 754
917917 (3) As used in this subsection, "consultant" means "consultant" as 755
918918 defined in section 4b-55, "consultant services" means "consultant 756
919919 services" as defined in section 4b-55, and "program" means multiple 757
920920 projects involving the planning, design, construction, repair, 758
921921 improvement or expansion of specified buildings, facilities or site 759
922922 improvements, wherein the work (A) will be of a repetitive nature, (B) 760
923923 will share a common funding source that imposes particular 761
924924 requirements, or (C) would be significantly facilitated if completed by 762
925925 the same design professional or construction administrator. 763
926926 Sec. 20. Subsection (a) of section 4b-57 of the general statutes is 764
927927 repealed and the following is substituted in lieu thereof (Effective July 1, 765
928928 2023): 766
929929 (a) Whenever consultant services are required by the commissioner 767
930930 in fulfilling the responsibilities under section 4b-1, and in the case of 768
931931 each project, the commissioner shall invite responses from such firms by 769
932932 posting notice on the State Contracting Portal, except that, in the case of 770 Substitute Bill No. 1223
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938938
939939 an emergency procurement, the commissioner may receive consultant 771
940940 services under a contract entered into pursuant to subsection (d) of 772
941941 section 4b-51, as amended by this act. The commissioner shall prescribe, 773
942942 by regulations adopted in accordance with chapter 54, the advance 774
943943 notice required for, the manner of submission, and conditions and 775
944944 requirements of, such responses. 776
945945 Sec. 21. Subsection (g) of section 4b-91 of the general statutes is 777
946946 repealed and the following is substituted in lieu thereof (Effective July 1, 778
947947 2023): 779
948948 (g) Notwithstanding the provisions of this chapter regarding 780
949949 competitive bidding procedures, in the case of an emergency 781
950950 procurement due to a threat to public health, welfare or safety, the 782
951951 commissioner may select and interview at least three responsible and 783
952952 qualified general contractors who are prequalified pursuant to section 784
953953 4a-100 and submit the three selected contractors to the construction 785
954954 services award panels process described in section 4b-100a and any 786
955955 regulation adopted by the commissioner. The commissioner may 787
956956 negotiate with the successful bidder a contract which is both fair and 788
957957 reasonable to the state for a community court project, the downtown 789
958958 Hartford higher education center project, a correctional facility project, 790
959959 a juvenile residential center project, or a student residential facility for 791
960960 the Connecticut State University System that is a priority higher 792
961961 education facility project. The Commissioner of Administrative 793
962962 Services, prior to entering any such contract or performing any work on 794
963963 such project, shall submit such contract to the State Properties Review 795
964964 Board for review and approval or disapproval by the board, pursuant 796
965965 to subsection (i) of this section. Any general contractor awarded a 797
966966 contract pursuant to this subsection shall be subject to the same 798
967967 requirements concerning the furnishing of bonds as a contractor 799
968968 awarded a contract pursuant to subsection (b) of this section. 800
969969 Sec. 22. Section 4e-27 of the general statutes is repealed and the 801
970970 following is substituted in lieu thereof (Effective July 1, 2023): 802 Substitute Bill No. 1223
971971
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976976
977977 Not later than June 1, 2010, the State Contracting Standards Board, in 803
978978 consultation with the Attorney General, shall adopt regulations, in 804
979979 accordance with the provisions of chapter 54, specifying the types of 805
980980 contracts that may be used by state contracting agencies. Such 806
981981 regulations shall specify that a cost-reimbursement contract may be 807
982982 used only when a determination is made in writing by the agency 808
983983 procurement officer that such contract is likely to be less costly to the 809
984984 state contracting agency than any other type or that it is impracticable 810
985985 to obtain the supplies, services or construction required except under 811
986986 such a contract. 812
987987 Sec. 23. Section 4e-31 of the general statutes is repealed and the 813
988988 following is substituted in lieu thereof (Effective July 1, 2023): 814
989989 When, for any reason, collusion or other anticompetitive practices are 815
990990 suspected among any bidders or proposers for a [state] contract of a 816
991991 state contracting agency, a notice of the relevant facts shall be 817
992992 transmitted to the Attorney General by any affected party, including, 818
993993 but not limited to, the state contracting agency, a bidder or a proposer. 819
994994 Sec. 24. Section 4e-34 of the general statutes is repealed and the 820
995995 following is substituted in lieu thereof (Effective July 1, 2023): 821
996996 (a) After reasonable notice and hearing and consultation with the 822
997997 relevant state contracting agency and the Attorney General, the State 823
998998 Contracting Standards Board, acting through a subcommittee of three 824
999999 members, appointed by the chairperson, which subcommittee shall 825
10001000 include not less than one legislative appointee, may disqualify any 826
10011001 contractor, bidder or proposer, for a period of not more than five years, 827
10021002 from bidding on, applying for or participating as a contractor or 828
10031003 subcontractor under, contracts with the state or quasi-public agencies. 829
10041004 Such disqualification shall be upon the vote of two-thirds of the 830
10051005 members of the subcommittee present and voting for that purpose. Such 831
10061006 hearing shall be conducted in accordance with the provisions of chapter 832
10071007 54. The subcommittee shall issue a written recommendation not later 833
10081008 than sixty days after the conclusion of such hearing, and shall state the 834 Substitute Bill No. 1223
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10141014
10151015 reason for the recommended action and, if the disqualification is 835
10161016 recommended, the period of time the contractor, bidder or proposer 836
10171017 shall be disqualified. In determining whether to disqualify a contractor, 837
10181018 bidder or proposer, the subcommittee shall consider the seriousness of 838
10191019 the acts or omissions of the contractor, bidder or proposer and any 839
10201020 mitigating factors. Such recommendation shall be submitted to the 840
10211021 board for action and sent to the contractor by certified mail, return 841
10221022 receipt requested. If disqualification is recommended, the contractor 842
10231023 shall have thirty days to submit comments to the board. Upon receipt of 843
10241024 the proposed recommendation by the subcommittee, the board shall 844
10251025 issue a written decision either adopting, rejecting or modifying the 845
10261026 subcommittee's recommendation. Such decision shall be issued not later 846
10271027 than thirty days after receipt by the board of the contractor's comments, 847
10281028 if any. The board shall send the decision to the contractor by certified 848
10291029 mail, return receipt requested. The written decision shall be a final 849
10301030 decision for purposes of sections 4-180 and 4-183. 850
10311031 (b) Causes for such disqualification shall include the following: 851
10321032 (1) Conviction of, or entry of a plea of guilty or nolo contendere or 852
10331033 admission to, the commission of a criminal offense as an incident to 853
10341034 obtaining or attempting to obtain a public or private contract or 854
10351035 subcontract, or in the performance of such contract or subcontract; 855
10361036 (2) Conviction of, or entry of a plea of guilty or nolo contendere or 856
10371037 admission to, the violation of any state or federal law for embezzlement, 857
10381038 theft, forgery, bribery, falsification or destruction of records, receiving 858
10391039 stolen property or any other offense indicating a lack of business 859
10401040 integrity or business honesty which affects responsibility as a [state] 860
10411041 contractor; 861
10421042 (3) Conviction of, or entry of a plea of guilty or nolo contendere or 862
10431043 admission to, a violation of any state or federal antitrust, collusion or 863
10441044 conspiracy law arising out of the submission of bids or proposals on a 864
10451045 public or private contract or subcontract; 865 Substitute Bill No. 1223
10461046
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10511051
10521052 (4) Accumulation of two or more suspensions pursuant to section 4e-866
10531053 35, as amended by this act, within a twenty-four-month period; 867
10541054 (5) A wilful, negligent or reckless failure to perform in accordance 868
10551055 with the terms of one or more contracts or subcontracts, agreements or 869
10561056 transactions with state contracting agencies; 870
10571057 (6) A history of failure to perform or of unsatisfactory performance 871
10581058 on one or more public contracts, agreements or transactions with state 872
10591059 contracting agencies; 873
10601060 (7) A wilful violation of a statutory or regulatory provision or 874
10611061 requirement applicable to a contract, agreement or transaction with 875
10621062 state contracting agencies; 876
10631063 (8) A wilful or egregious violation of the ethical standards set forth in 877
10641064 sections 1-84, 1-86e and 1-101nn, as determined by the Citizen's Ethics 878
10651065 Advisory Board; or 879
10661066 (9) Any other cause or conduct the board determines to be so serious 880
10671067 and compelling as to affect responsibility as a [state] contractor, 881
10681068 including, but not limited to: 882
10691069 (A) Disqualification by another state for cause; 883
10701070 (B) The fraudulent or criminal conduct of any officer, director, 884
10711071 shareholder, partner, employee or other individual associated with a 885
10721072 contractor, bidder or proposer of such contractor, bidder or proposer, 886
10731073 provided such conduct occurred in connection with the individual's 887
10741074 performance of duties for or on behalf of such contractor, bidder or 888
10751075 proposer and such contractor, bidder or proposer knew or had reason 889
10761076 to know of such conduct; 890
10771077 (C) The existence of an informal or formal business relationship with 891
10781078 a contractor who has been disqualified from bidding or proposing on 892
10791079 [state] contracts of any state contracting agency. 893 Substitute Bill No. 1223
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10851085
10861086 (c) Upon written request by the affected [state] contractor, bidder or 894
10871087 proposer, the State Contracting Standards Board may reduce the period 895
10881088 or extent of disqualification for a contractor, bidder or proposer if 896
10891089 documentation supporting any of the following reasons for 897
10901090 modification is provided to the board by the contractor, bidder or 898
10911091 proposer: 899
10921092 (1) Newly discovered material evidence; 900
10931093 (2) Reversal of the conviction upon which the disqualification was 901
10941094 based; 902
10951095 (3) Bona fide change in ownership or management; or 903
10961096 (4) Elimination of other causes for which the disqualification was 904
10971097 imposed. 905
10981098 Sec. 25. Section 4e-35 of the general statutes is repealed and the 906
10991099 following is substituted in lieu thereof (Effective July 1, 2023): 907
11001100 (a) For purposes of this section and sections 4e-37 and 4e-38, as 908
11011101 amended by this act, "contracting agency of the state" does not include 909
11021102 a quasi-public agency. After reasonable notice and a hearing, conducted 910
11031103 in accordance with the provisions of chapter 54, the department head of 911
11041104 any [state] contracting agency of the state may suspend any contractor, 912
11051105 bidder or proposer for a period of not more than six months from 913
11061106 bidding on, applying for or performing work as a contractor or 914
11071107 subcontractor under, contracts with the state. The department head 915
11081108 shall issue a written decision not later than ninety days after the 916
11091109 conclusion of such hearing and state in the decision the reasons for the 917
11101110 action taken and, if the contractor, bidder or proposer is being 918
11111111 suspended, the period of such suspension. In determining whether to 919
11121112 suspend a contractor, bidder or proposer, the department head shall 920
11131113 consider the seriousness of the acts or omissions of the contractor, 921
11141114 bidder or proposer and any mitigating factors. The department head 922
11151115 shall send such decision to the contractor and the State Contracting 923
11161116 Standards Board by certified mail, return receipt requested. Such 924 Substitute Bill No. 1223
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11221122
11231123 decision shall be a final decision for purposes of sections 4-180 and 4-925
11241124 183. 926
11251125 (b) Causes for such suspension shall include the following: 927
11261126 (1) Failure without good cause to perform in accordance with 928
11271127 specifications or within the time limits provided in the contract; 929
11281128 (2) A record of failure to perform or of unsatisfactory performance in 930
11291129 accordance with the terms of one or more contracts, provided failure to 931
11301130 perform or unsatisfactory performance caused by acts beyond the 932
11311131 control of the contractor shall not be considered to be a basis for 933
11321132 suspension; 934
11331133 (3) Any cause the complainant [state] contracting agency of the state 935
11341134 determines to be so serious and compelling as to affect the responsibility 936
11351135 of a state contractor, including suspension by another [state] contracting 937
11361136 agency of the state for cause; or 938
11371137 (4) A violation of the ethical standards set forth in section 1-84, 1-86e 939
11381138 or 1-101nn, as determined by the Citizen's Ethics Advisory Board. 940
11391139 (c) The State Contracting Standards Board may grant an exception 941
11401140 permitting a suspended contractor to participate in a particular contract 942
11411141 or subcontract upon a written determination by the board that there is 943
11421142 good cause for such exception and that such exception is in the best 944
11431143 interest of the state. 945
11441144 (d) The department head of each [state] contracting agency of the 946
11451145 state shall conduct reviews of contractors and shall file reports 947
11461146 pertaining to any of the reasons set forth in this section that may be the 948
11471147 basis for disqualification. 949
11481148 Sec. 26. Subsections (g) to (i), inclusive, of section 4e-37 of the general 950
11491149 statutes are repealed and the following is substituted in lieu thereof 951
11501150 (Effective July 1, 2023): 952 Substitute Bill No. 1223
11511151
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11561156
11571157 (g) In the event that the appeals review subcommittee or the board 953
11581158 determines that a procedural violation occurred, or that allegations of 954
11591159 an unauthorized or unwarranted, noncompetitive selection process 955
11601160 have been substantiated, the board shall direct the [state] contracting 956
11611161 agency of the state to take corrective action not later than thirty days 957
11621162 after the date of the subcommittee's or board's decision, as applicable. 958
11631163 (h) In the event such appeal is found to be frivolous by the appeals 959
11641164 review subcommittee or the full board, such frivolous appeal may serve 960
11651165 as a basis for disqualification pursuant to section 4e-34, as amended by 961
11661166 this act. 962
11671167 (i) Any three members of the board may request a full board review 963
11681168 of any contract deliberation or award process of a [state] contracting 964
11691169 agency of the state. 965
11701170 Sec. 27. Section 4e-38 of the general statutes is repealed and the 966
11711171 following is substituted in lieu thereof (Effective July 1, 2023): 967
11721172 The State Contracting Standards Board shall issue a decision in 968
11731173 writing or take other appropriate action on each appeal submitted 969
11741174 pursuant to section 4e-37, as amended by this act. A copy of any decision 970
11751175 shall be provided to all parties, the department head of the [state] 971
11761176 contracting agency of the state and the Chief Procurement Officer. 972
11771177 Sec. 28. Subdivision (2) of section 4e-40 of the general statutes is 973
11781178 repealed and the following is substituted in lieu thereof (Effective July 1, 974
11791179 2023): 975
11801180 (2) If the person awarded the contract acted in bad faith: 976
11811181 (A) The contract may be declared null and void; or 977
11821182 (B) The contract may be ratified and affirmed if such action is in the 978
11831183 best interests of the state, as determined by the State Contracting 979
11841184 Standards Board, in writing, without prejudice to the [state's] state 980
11851185 contracting agency's right to such damages as may be appropriate. 981 Substitute Bill No. 1223
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11921192 Sec. 29. Section 4e-45 of the general statutes is repealed and the 982
11931193 following is substituted in lieu thereof (Effective July 1, 2023): 983
11941194 With respect to infrastructure facilities, not later than June 1, 2010, the 984
11951195 State Contracting Standards Board, in consultation with the state 985
11961196 contracting agencies and the Attorney General, shall adopt regulations, 986
11971197 in accordance with the provisions of chapter 54, requiring the inclusion 987
11981198 in [state] contracts with any state contracting agency of clauses 988
11991199 providing for adjustments in prices, time of performance, remedies, 989
12001200 termination or other contract provisions necessary to protect the 990
12011201 interests of the state. 991
12021202 Sec. 30. Section 4e-46 of the general statutes is repealed and the 992
12031203 following is substituted in lieu thereof (Effective July 1, 2023): 993
12041204 Not later than June 1, 2010, the State Contracting Standards Board 994
12051205 shall adopt regulations, in accordance with the provisions of chapter 54, 995
12061206 concerning the procedure and circumstances under which a state 996
12071207 contracting agency may allow contract modification, change order, or 997
12081208 contract price adjustment under a construction contract with [the state] 998
12091209 a state contracting agency in excess of fifty thousand dollars. Such 999
12101210 regulations shall require that every contract modification, change order 1000
12111211 or contract price adjustment under a construction contract with [the 1001
12121212 state] a state contracting agency in excess of fifty thousand dollars shall 1002
12131213 be subject to prior written certification by the fiscal officer of the state 1003
12141214 contracting agency or other agency responsible for funding the project 1004
12151215 or the contract, or other official responsible for monitoring and 1005
12161216 reporting upon the status of the costs of the total project budget or 1006
12171217 contract budget, as to the effect of the contract modification, change 1007
12181218 order, or adjustment in contract price on the total project budget or the 1008
12191219 total contract budget. Such regulations shall further provide that in the 1009
12201220 event the certification of the fiscal officer or other responsible official 1010
12211221 discloses a resulting increase in the total project budget or the total 1011
12221222 contract budget, the agency procurement officer shall not execute or 1012
12231223 make such contract modification, change order, or adjustment in 1013
12241224 contract price unless sufficient funds are available or the scope of the 1014 Substitute Bill No. 1223
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12311231 project or contract is adjusted so as to permit the degree of completion 1015
12321232 that is feasible within the total project budget or total contract budget as 1016
12331233 it existed prior to the contract modification, change order, or adjustment 1017
12341234 in contract price under consideration provided, with respect to the 1018
12351235 validity, as to the contractor, of any executed contract modification, 1019
12361236 change order, or adjustment in contract price which the contractor has 1020
12371237 reasonably relied upon, it shall be presumed that there has been 1021
12381238 compliance with the provisions of this section. 1022
12391239 Sec. 31. Subsection (a) of section 4e-48 of the general statutes is 1023
12401240 repealed and the following is substituted in lieu thereof (Effective July 1, 1024
12411241 2023): 1025
12421242 (a) For the purposes of this section, "nonresident bidder" means a 1026
12431243 business that is not a resident of the state that submits a bid in response 1027
12441244 to an invitation to bid by a state contracting agency, "resident bidder" 1028
12451245 means a business that submits a bid in response to an invitation to bid 1029
12461246 by a state contracting agency and that has paid unemployment taxes or 1030
12471247 income taxes in this state during the twelve calendar months 1031
12481248 immediately preceding submission of such bid, has a business address 1032
12491249 in the state and has affirmatively claimed such status in the bid 1033
12501250 submission, and "contract" [means "contract" as defined in section 4e-1 1034
12511251 and "state contracting agency" means] and "state contracting agency" [, 1035
12521252 as defined] have the same meanings as provided in section 4e-1, as 1036
12531253 amended by this act. 1037
12541254 Sec. 32. Section 4e-72 of the general statutes is repealed and the 1038
12551255 following is substituted in lieu thereof (Effective July 1, 2023): 1039
12561256 As used in this section, "contract", "state contracting agency", "data" 1040
12571257 and "contractor" have the same meanings as provided in section 4e-1, as 1041
12581258 amended by this act. Any contract between a state contracting agency 1042
12591259 and a contractor that is entered into, renewed or amended on or after 1043
12601260 October 1, 2021, or, in the case of a state contracting agency that is a 1044
12611261 quasi-public agency, entered into, renewed or amended on or after July 1045
12621262 1, 2023, shall contain a provision authorizing the state contracting 1046 Substitute Bill No. 1223
12631263
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12681268
12691269 agency to access any data concerning such contract that is in the 1047
12701270 possession or control of the contractor upon demand in a format 1048
12711271 prescribed by the state contracting agency at no additional cost to such 1049
12721272 agency. 1050
12731273 Sec. 33. Section 10a-255 of the general statutes is repealed and the 1051
12741274 following is substituted in lieu thereof (Effective July 1, 2023): 1052
12751275 (a) To accomplish the purposes of sections 10a-250 to 10a-263, 1053
12761276 inclusive, the corporation may enter into joint ventures or shared service 1054
12771277 agreements to procure hospital facilities and to contract for services 1055
12781278 necessary or useful in connection with the procurement of hospital 1056
12791279 facilities. The corporation shall establish and adopt specific policies, 1057
12801280 rules and procedures on purchasing and contracting. Such policies, 1058
12811281 rules and procedures shall be approved by a two-thirds vote of its full 1059
12821282 board of directors. The corporation shall conduct its contracting and 1060
12831283 purchasing operations in accordance with such policies, rules and 1061
12841284 procedures. Notwithstanding any other provision of law to the contrary, 1062
12851285 the corporation may enter into joint ventures or shared service 1063
12861286 agreements and may procure hospital facilities and contract for any 1064
12871287 services necessary or useful in connection with such procurement either 1065
12881288 (1) pursuant to a process of open or competitive bidding, provided that 1066
12891289 (A) the corporation may determine the format, contents and scope of 1067
12901290 any joint venture or shared service agreement or any procurement of 1068
12911291 hospital facilities, and services in connection with such procurement, 1069
12921292 the conditions under which bidding shall take place and the schedule 1070
12931293 and stipulations for contract award, and (B) the corporation may select 1071
12941294 the contractor deemed to have submitted the most favorable bid, price 1072
12951295 and other factors considered, when, in the judgment of the corporation, 1073
12961296 such award is in the best interests of the hospital, or (2) if the 1074
12971297 corporation, in its discretion, determines that, due to the nature of the 1075
12981298 joint venture or shared service agreement or hospital facilities to be 1076
12991299 contracted for or procured, open or public bidding is either 1077
13001300 impracticable or not in the best interests of the hospital, through 1078
13011301 negotiation with such person or persons as the corporation may 1079 Substitute Bill No. 1223
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13071307
13081308 determine. The terms and conditions of joint ventures or shared service 1080
13091309 agreements or contracts for hospital facilities shall be determined by the 1081
13101310 corporation, as shall the fees or other compensation to be paid to such 1082
13111311 persons under such joint venture, shared service agreement or contract, 1083
13121312 provided any contract for construction by the corporation or a 1084
13131313 subsidiary of a hospital facility shall be subject to the provisions of 1085
13141314 section 31-53 and any joint venture agreement or shared service 1086
13151315 agreement of the corporation shall contain a neutrality clause signed by 1087
13161316 all parties to such joint venture agreement or shared service agreement 1088
13171317 prohibiting employer interference by such parties in union organizing 1089
13181318 and education campaigns, prohibiting discrimination in hiring based on 1090
13191319 past union activity and prohibiting harassment of employees engaged 1091
13201320 in labor organizing, all in compliance with section 31-104 and section 31-1092
13211321 105. The joint venture, shared service agreement or contracts entered 1093
13221322 into by the corporation shall not be subject to the approval of any state 1094
13231323 department, office or agency other than as provided in this section. 1095
13241324 Copies of all contracts of the corporation shall be maintained by the 1096
13251325 corporation at its offices as public records, subject to the exemption 1097
13261326 provided in subsection (i) of section 10a-253. Nothing in this subsection 1098
13271327 shall be deemed to restrict the discretion of the corporation to utilize its 1099
13281328 own staff and workforce for the performance of any of its assigned 1100
13291329 responsibilities and functions whenever, in the discretion of the 1101
13301330 corporation, it becomes necessary, convenient or desirable to do so. 1102
13311331 (b) Subject to the restrictions of subdivision (15) of section 10a-254 the 1103
13321332 corporation may contract with the hospital to provide services for the 1104
13331333 hospital through joint ventures or shared service agreements or to 1105
13341334 provide hospital facilities for the hospital, to provide insurance for the 1106
13351335 hospital as provided in section 10a-256 and to contract for claims 1107
13361336 management services, or to otherwise make hospital facilities or services 1108
13371337 provided by joint ventures or shared service agreements available for 1109
13381338 the hospital. For the hospital to enter into any contract for such services 1110
13391339 or hospital facilities or insurance or claims management services with 1111
13401340 the corporation, to pay any reasonable fees and charges established by 1112
13411341 the corporation for such services or hospital facilities or to pledge 1113 Substitute Bill No. 1223
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13481348 payment from any moneys made available by the state to the hospital 1114
13491349 including, but not limited to, resources of the hospital fund established 1115
13501350 and administered pursuant to sections 10a-127 and 10a-128, other funds 1116
13511351 of the state and proceeds of financings by the state for the payment of 1117
13521352 such fees and charges, it shall have the authorization of the Board of 1118
13531353 Trustees of The University of Connecticut. Such authorization shall be 1119
13541354 given by adoption of a resolution at a regularly or specially noticed 1120
13551355 meeting of said board of trustees. Any fees and charges so established 1121
13561356 shall be deemed to be direct expenses of the hospital for which the 1122
13571357 resources of the hospital fund may be used pursuant to section 10a-127 1123
13581358 and the State Treasurer is authorized to make payments of such fees and 1124
13591359 charges upon warrants issued by the State Comptroller, upon the order 1125
13601360 of authorized officers of The University of Connecticut, pursuant to such 1126
13611361 a resolution. The provisions of section 4a-57 and any provision of law 1127
13621362 relating to contract approval other than sections 10a-250 to 10a-263, 1128
13631363 inclusive, shall not apply to such contracts between the hospital and the 1129
13641364 corporation. Any such contract or contracts shall be upon such terms 1130
13651365 and conditions as the corporation and the hospital shall determine to be 1131
13661366 reasonable including, but not limited to, the reimbursement of all costs 1132
13671367 of planning, financing, acquisition, construction, operation and 1133
13681368 maintenance, and any claims arising therefrom. All payments of fees 1134
13691369 and charges required under any contract or agreement entered into 1135
13701370 pursuant to the provisions of this section are considered expenditures 1136
13711371 for public purposes by the state. Any contract between the hospital and 1137
13721372 the corporation that provides for the procurement by the corporation of 1138
13731373 hospital facilities or services as authorized by sections 10a-250 to 10a-1139
13741374 263, inclusive, shall provide that the hospital shall be required to pay, 1140
13751375 through service, lease, rental or installment sale payments for such 1141
13761376 hospital facilities or services, all project costs of such hospital facilities 1142
13771377 or services at such times and in such amounts as determined by the 1143
13781378 corporation and the hospital. Any such contract between the hospital 1144
13791379 and the corporation may contain provisions as to: (1) Pledging or 1145
13801380 assigning any part of moneys and revenues, including reimbursement 1146
13811381 allowances, derived by the hospital or the corporation, to secure 1147
13821382 payments required by such contract; (2) setting aside reserves and 1148 Substitute Bill No. 1223
13831383
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13881388
13891389 creating special funds and the disposition thereof; (3) defining the acts 1149
13901390 or omissions to act which shall constitute a default in the obligations and 1150
13911391 duties of the hospital or the corporation and providing for the rights and 1151
13921392 remedies of the hospital and the corporation in the event of such default; 1152
13931393 (4) any other matters which may be deemed necessary or desirable by 1153
13941394 the corporation to properly carry out its corporate purposes. 1154
13951395 (c) Any joint venture, shared service agreement or contract entered 1155
13961396 into by the corporation, or any of its subsidiaries under this section, shall 1156
13971397 comply with the applicable provisions of section 4e-16, as amended by 1157
13981398 this act, and shall be subject to the jurisdiction of the State Contracting 1158
13991399 Standards Board to the same extent as a constituent unit of higher 1159
14001400 education. 1160
14011401 Sec. 34. Subdivision (15) of subsection (a) of section 15-31b of the 1161
14021402 general statutes is repealed and the following is substituted in lieu 1162
14031403 thereof (Effective July 1, 2023): 1163
14041404 (15) Invest in, acquire, lease, purchase, own, manage, hold and 1164
14051405 dispose of real property and lease, convey or deal in or enter into 1165
14061406 agreements with respect to such property on any terms necessary or 1166
14071407 incidental to carrying out the purposes of sections 15-31a to 15-31i, 1167
14081408 inclusive, provided such transactions shall not be subject to approval, 1168
14091409 review or regulation by any state agency pursuant to title 4b or any other 1169
14101410 provision of the general statutes, except (A) the authority shall not 1170
14111411 convey fee simple ownership in any property associated with the ports 1171
14121412 or harbors under its jurisdiction and control without the approval of the 1172
14131413 State Properties Review Board and the Attorney General, and (B) as 1173
14141414 provided in [subsection (c) of this section] chapter 62; and 1174
14151415 Sec. 35. Subsections (b) and (c) of section 15-31b of the general statutes 1175
14161416 are repealed and the following is substituted in lieu thereof (Effective July 1176
14171417 1, 2023): 1177
14181418 (b) The authority shall continue as long as it has bonds or other 1178
14191419 obligations outstanding and until its existence is terminated by law, 1179 Substitute Bill No. 1223
14201420
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14251425
14261426 provided no such termination shall affect any outstanding contractual 1180
14271427 obligation of the authority and the state shall succeed to the obligations 1181
14281428 of the authority under any contract. Upon the termination of the 1182
14291429 existence of the authority, all its rights and properties shall pass to and 1183
14301430 be vested in the state of Connecticut. 1184
14311431 [(c) On and after June 23, 2021, until July 1, 2026, the authority shall 1185
14321432 be a state contracting agency for the purposes of chapter 62, except for 1186
14331433 the provisions of section 4e-16, and shall be subject to the authority of 1187
14341434 the State Contracting Standards Board established under section 4e-2.] 1188
14351435 Sec. 36. Subsection (c) of section 10-357b of the general statutes is 1189
14361436 repealed and the following is substituted in lieu thereof (Effective July 1, 1190
14371437 2023): 1191
14381438 (c) The State Education Resource Center shall be subject to (1) rules, 1192
14391439 regulations and restrictions on purchasing, procurement, personal 1193
14401440 service agreements and the disposition of assets generally applicable to 1194
14411441 Connecticut state agencies, including those contained in titles 4, 4a and 1195
14421442 4b and [section 4e-19] chapter 62, and (2) audit by the Auditors of Public 1196
14431443 Accounts under chapter 12 and section 2-90. 1197
14441444 Sec. 37. Section 10a-196 of the general statutes is repealed and the 1198
14451445 following is substituted in lieu thereof (Effective July 1, 2023): 1199
14461446 Sections 10a-176 to 10a-195, inclusive, shall be deemed to provide a 1200
14471447 complete, additional and alternative method for the doing of the things 1201
14481448 authorized thereby, and shall be regarded as supplemental and 1202
14491449 additional to powers conferred by other laws; provided the issuance of 1203
14501450 bonds and refunding bonds under the provisions of this chapter need 1204
14511451 not comply with the requirements of any other law applicable to the 1205
14521452 issuance of bonds including, particularly, title 42a; and provided in the 1206
14531453 construction and acquisition of a project pursuant hereto the authority 1207
14541454 need not comply with the requirements of chapter 50. Except as 1208
14551455 otherwise expressly provided in this chapter and the provisions of 1209
14561456 chapter 62 concerning state contracting agencies, none of the powers 1210 Substitute Bill No. 1223
14571457
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14621462
14631463 granted to the authority under the provisions of this chapter shall be 1211
14641464 subject to the supervision or regulation or require the approval or 1212
14651465 consent of any municipality or political subdivision or any commission, 1213
14661466 board, body, bureau, official or agency thereof or of the state. 1214
14671467 Sec. 38. Subsection (s) of section 10a-204b of the general statutes is 1215
14681468 repealed and the following is substituted in lieu thereof (Effective July 1, 1216
14691469 2023): 1217
14701470 (s) The provisions of this section shall be deemed to provide a 1218
14711471 complete, additional and alternative method for the actions and the 1219
14721472 things authorized thereby and shall be regarded as supplemental and 1220
14731473 additional to powers granted by other laws; the issuance of bonds, notes 1221
14741474 or other obligations under the provisions of this section need not comply 1222
14751475 with the requirements of any law applicable to the issuance of bonds, 1223
14761476 notes or other obligations. This section, being necessary for the welfare 1224
14771477 of the state and its inhabitants, shall be liberally construed to affect its 1225
14781478 purpose. None of the powers granted to the corporation or to any 1226
14791479 subsidiary created pursuant to subdivision (5) of section 10a-204 under 1227
14801480 the provisions of this section shall be subject to the supervision or 1228
14811481 regulation or require the approval or consent of any municipality or 1229
14821482 political subdivision or any department, division, commission, board, 1230
14831483 body, bureau, official or agency thereof or of the state, and the exercise 1231
14841484 thereof shall not cause the corporation or any such subsidiary to be 1232
14851485 construed to be an agency within the scope of chapter 54 or a 1233
14861486 department, institution or agency of the state, except that the 1234
14871487 corporation or any such subsidiary shall comply with the provisions of 1235
14881488 chapter 62 concerning state contracting agencies. 1236
14891489 Sec. 39. Section 10a-243 of the general statutes is repealed and the 1237
14901490 following is substituted in lieu thereof (Effective July 1, 2023): 1238
14911491 The provisions of this chapter shall be deemed to provide a complete, 1239
14921492 additional and alternative method for the actions of the things 1240
14931493 authorized thereby and shall be regarded as supplemental and 1241
14941494 additional to powers granted by other laws; the issuance of revenue 1242 Substitute Bill No. 1223
14951495
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15001500
15011501 bonds or notes and revenue refunding bonds or notes under the 1243
15021502 provisions of this chapter need not comply with the requirements of any 1244
15031503 other law applicable to the issuance of bonds or notes. This chapter, 1245
15041504 being necessary for the welfare of the state and its inhabitants, shall be 1246
15051505 liberally construed to effect its purpose. Except as otherwise expressly 1247
15061506 provided in this chapter or the provisions of chapter 62 concerning state 1248
15071507 contracting agencies, none of the powers granted to the authority under 1249
15081508 the provisions of this chapter shall be subject to the supervision or 1250
15091509 regulation or require the approval or consent of any municipality or 1251
15101510 political subdivision or any department, division, commission, board, 1252
15111511 body, bureau, official or agency thereof or of the state. The authority 1253
15121512 shall not be construed to be an agency within the scope of chapter 54 or 1254
15131513 a department, institution or agency of the state. 1255
15141514 Sec. 40. Subdivision (16) of subsection (b) of section 12-806 of the 1256
15151515 general statutes is repealed and the following is substituted in lieu 1257
15161516 thereof (Effective July 1, 2023): 1258
15171517 (16) To invest in, acquire, lease, purchase, own, manage, hold and 1259
15181518 dispose of real property and lease, convey or deal in or enter into 1260
15191519 agreements with respect to such property on any terms necessary or 1261
15201520 incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-1262
15211521 818, inclusive, and sections 12-853 and 12-854, provided such 1263
15221522 transactions shall not be subject to approval, review or regulation 1264
15231523 pursuant to title 4b or any other statute by any state agency, except that 1265
15241524 real property transactions shall be subject to review by the State 1266
15251525 Properties Review Board and contracts shall be subject to the provisions 1267
15261526 of chapter 62 concerning state contracting agencies; 1268
15271527 Sec. 41. Section 12-815 of the general statutes is repealed and the 1269
15281528 following is substituted in lieu thereof (Effective July 1, 2023): 1270
15291529 (a) The corporation shall establish and adopt specific policies, rules 1271
15301530 and procedures on purchasing and contracting. Such policies, rules and 1272
15311531 procedures or amendments thereto shall be approved by a two-thirds 1273
15321532 vote of the entire board. Notwithstanding any other provision of law to 1274 Substitute Bill No. 1223
15331533
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15381538
15391539 the contrary, the corporation may enter into management, consulting 1275
15401540 and other agreements for the provision of goods, services and 1276
15411541 professional advisors necessary or useful in connection with the 1277
15421542 operation and management of the lottery (1) pursuant to a process of 1278
15431543 open or competitive bidding, provided (A) the corporation shall first 1279
15441544 determine the format, content and scope of any agreement for any 1280
15451545 procurement of goods or services, the conditions under which bidding 1281
15461546 will take place and the schedule and stipulations for contract award, and 1282
15471547 (B) the corporation may select the contractor deemed to have submitted 1283
15481548 the most favorable bid, considering price and other factors, when, in the 1284
15491549 judgment of the corporation, such award is in the best interests of the 1285
15501550 corporation, or (2) if the corporation, in its discretion, determines that, 1286
15511551 due to the nature of the agreement to be contracted for or procured, 1287
15521552 open or public bidding is either impracticable or not in the best interests 1288
15531553 of the corporation, by negotiation with such prospective providers as 1289
15541554 the corporation may determine. The terms and conditions of agreements 1290
15551555 and the fees or other compensation to be paid to such persons shall be 1291
15561556 determined by the corporation. The agreements entered into by the 1292
15571557 corporation in accordance with the provisions of this section shall not 1293
15581558 be subject to the approval of any state department, office or agency, 1294
15591559 except as provided in chapter 62 in the provisions concerning state 1295
15601560 contracting agencies or regulations adopted by the Department of 1296
15611561 Consumer Protection. Nothing in this section shall be deemed to restrict 1297
15621562 the discretion of the corporation to utilize its own staff and workforce 1298
15631563 for the performance of any of its assigned responsibilities and functions 1299
15641564 whenever, in the discretion of the corporation, it becomes necessary, 1300
15651565 convenient or desirable to do so. Copies of all agreements of the 1301
15661566 corporation shall be maintained by the corporation at its offices as public 1302
15671567 records, subject to said exemption. 1303
15681568 (b) [The] Except as provided in chapter 62, the corporation shall not 1304
15691569 be subject to rules, regulations or restrictions on purchasing or 1305
15701570 procurement or the disposition of assets generally applicable to 1306
15711571 Connecticut state agencies, including those contained in titles 4a and 4b 1307
15721572 and the corresponding rules and regulations. The board shall adopt 1308 Substitute Bill No. 1223
15731573
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15781578
15791579 rules and procedures on purchasing, procurement and the disposition 1309
15801580 of assets applicable to the corporation. The adoption of such rules or 1310
15811581 procedures shall not be subject to chapter 54. Any such rules or 1311
15821582 procedures shall be a public record, as defined in section 1-200. 1312
15831583 Sec. 42. Section 22a-268 of the general statutes is repealed and the 1313
15841584 following is substituted in lieu thereof (Effective July 1, 2023): 1314
15851585 The authority shall utilize private industry, by contract, to carry out 1315
15861586 the business, design, operating, management, marketing, planning and 1316
15871587 research and development functions of the authority, unless the 1317
15881588 authority determines that it is in the public interest to adopt another 1318
15891589 course of action. The authority is hereby empowered to enter into long-1319
15901590 term contracts with private persons for the performance of any such 1320
15911591 functions of the authority which, in the opinion of the authority, can 1321
15921592 desirably and conveniently be carried out by a private person under 1322
15931593 contract provided any such contract shall contain such terms and 1323
15941594 conditions as will enable the authority to retain overall supervision and 1324
15951595 control of the business, design, operating, management, transportation, 1325
15961596 marketing, planning and research and development functions to be 1326
15971597 carried out or to be performed by such private persons pursuant to such 1327
15981598 contract. Such contracts shall be entered into either on a competitive 1328
15991599 negotiation or competitive bidding basis, and the authority in its 1329
16001600 discretion may select the type of contract it deems most prudent to 1330
16011601 utilize, pursuant to the contracting procedures adopted under section 1331
16021602 22a-268a and considering the scope of work, the management 1332
16031603 complexities associated therewith, the extent of current and future 1333
16041604 technological development requirements and the best interests of the 1334
16051605 state. Whenever a long-term contract is entered into on other than a 1335
16061606 competitive bidding basis, the criteria and procedures therefor shall 1336
16071607 conform to applicable provisions of subdivision (16) of subsection (a) 1337
16081608 and subsections (b) and (c) of section 22a-266, provided however, that 1338
16091609 any contract for a period of over five years in duration, or any contract 1339
16101610 for which the annual consideration is greater than fifty thousand dollars 1340
16111611 shall be approved by a two-thirds vote of the authority's full board of 1341 Substitute Bill No. 1223
16121612
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16171617
16181618 directors. The terms and conditions of such contracts shall be 1342
16191619 determined by the authority, as shall the fees or other similar 1343
16201620 compensation to be paid to such persons for such contracts. The 1344
16211621 contracts entered into by the authority shall not be subject to the 1345
16221622 approval of any other state department, office or agency, except as 1346
16231623 provided in chapter 62, in the provisions concerning state contracting 1347
16241624 agencies. However, copies of all contracts of the authority shall be 1348
16251625 maintained by the authority as public records, subject to the proprietary 1349
16261626 rights of any party to the contract. Nothing of the aforesaid shall be 1350
16271627 deemed to restrict the discretion of the authority to utilize its own staff 1351
16281628 and work force for the performance of any of its assigned 1352
16291629 responsibilities and functions whenever, in the discretion of the 1353
16301630 authority, it becomes necessary, convenient or desirable to do so. Any 1354
16311631 litigation with respect to any terms, conditions or provisions of any 1355
16321632 contract of the authority, or the performance or nonperformance of same 1356
16331633 by either party, shall be tried before a judge of the Superior Court of 1357
16341634 Connecticut. 1358
16351635 Sec. 43. Subdivision (14) of section 31-49h of the general statutes is 1359
16361636 repealed and the following is substituted in lieu thereof (Effective July 1, 1360
16371637 2023): 1361
16381638 (14) Make and enter into any contract or agreement necessary or 1362
16391639 incidental to the performance of its duties and execution of its powers. 1363
16401640 [The] Except as provided in chapter 62, the contracts and agreements 1364
16411641 entered into by the authority shall not be subject to the approval of any 1365
16421642 other state department, office or agency, provided copies of all such 1366
16431643 contracts shall be maintained by the authority as public records, subject 1367
16441644 to the proprietary rights of any party to such contracts. No contract shall 1368
16451645 contain any provision in which any contractor derives any direct or 1369
16461646 indirect economic benefit from denying or otherwise influencing the 1370
16471647 outcome of any claim for benefits. The standard criteria for the 1371
16481648 evaluation of proposals relating to claims processing, web site 1372
16491649 development, database development, marketing and advertising, in the 1373
16501650 event the authority seeks the services of an outside contractor for such 1374 Substitute Bill No. 1223
16511651
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16551655 45 of 47
16561656
16571657 tasks, and for the evaluation of proposals relating to all other contracts 1375
16581658 in amounts equal to or exceeding two hundred fifty thousand dollars 1376
16591659 shall include, but need not be limited to: (A) Transparency, (B) cost, (C) 1377
16601660 efficiency of operations, (D) quality of work related to the contracts 1378
16611661 issued, (E) user experience, (F) accountability, and (G) a cost-benefit 1379
16621662 analysis documenting the direct and indirect costs of such contracts, 1380
16631663 including qualitative and quantitative benefits that will result from the 1381
16641664 implementation of such contracts. The establishment of additional 1382
16651665 standard criteria shall be approved by a two-thirds vote of the board 1383
16661666 after such criteria have been posted on a public Internet web site 1384
16671667 maintained by the authority for notice and comment for at least one 1385
16681668 week prior to such vote. 1386
16691669 Sec. 44. Subdivision (13) of section 38a-1083 of the general statutes is 1387
16701670 repealed and the following is substituted in lieu thereof (Effective July 1, 1388
16711671 2023): 1389
16721672 (13) Make and enter into any contract or agreement necessary or 1390
16731673 incidental to the performance of its duties and execution of its powers, 1391
16741674 including, but not limited to, an agreement with the Office of Health 1392
16751675 Strategy to use funds collected under this section for the operation of 1393
16761676 the all-payer claims database established under section 19a-755a and to 1394
16771677 receive data from such database. The contracts entered into by the 1395
16781678 exchange shall not be subject to the approval of any other state 1396
16791679 department, office or agency, provided copies of all contracts of the 1397
16801680 exchange shall be maintained by the exchange as public records, subject 1398
16811681 to the proprietary rights of any party to the contract, except (A) as 1399
16821682 provided in chapter 62, and (B) any agreement with the Office of Health 1400
16831683 Strategy shall be subject to approval by said office and the Office of 1401
16841684 Policy and Management and no portion of such agreement shall be 1402
16851685 considered proprietary; 1403
16861686 This act shall take effect as follows and shall amend the following
16871687 sections:
16881688
16891689 Section 1 from passage New section Substitute Bill No. 1223
16901690
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16951695
16961696 Sec. 2 July 1, 2023 4e-1
16971697 Sec. 3 July 1, 2023 4e-2(g) and (h)
16981698 Sec. 4 July 1, 2023 4e-3(a)(2)
16991699 Sec. 5 July 1, 2023 4e-4
17001700 Sec. 6 July 1, 2023 4e-5(a) to (c)
17011701 Sec. 7 July 1, 2023 4e-7(a)
17021702 Sec. 8 July 1, 2023 4e-8
17031703 Sec. 9 July 1, 2023 4e-10(a)
17041704 Sec. 10 July 1, 2023 4e-14
17051705 Sec. 11 July 1, 2023 4e-16(c) and (d)
17061706 Sec. 12 July 1, 2023 4e-16(l)(2) to (4)
17071707 Sec. 13 July 1, 2023 4e-16(n)
17081708 Sec. 14 July 1, 2023 4e-16(p)
17091709 Sec. 15 July 1, 2023 4e-17
17101710 Sec. 16 July 1, 2023 4e-18
17111711 Sec. 17 July 1, 2023 4e-21(c)
17121712 Sec. 18 July 1, 2023 4e-24
17131713 Sec. 19 July 1, 2023 4b-51(d)
17141714 Sec. 20 July 1, 2023 4b-57(a)
17151715 Sec. 21 July 1, 2023 4b-91(g)
17161716 Sec. 22 July 1, 2023 4e-27
17171717 Sec. 23 July 1, 2023 4e-31
17181718 Sec. 24 July 1, 2023 4e-34
17191719 Sec. 25 July 1, 2023 4e-35
17201720 Sec. 26 July 1, 2023 4e-37(g) to (i)
17211721 Sec. 27 July 1, 2023 4e-38
17221722 Sec. 28 July 1, 2023 4e-40(2)
17231723 Sec. 29 July 1, 2023 4e-45
17241724 Sec. 30 July 1, 2023 4e-46
17251725 Sec. 31 July 1, 2023 4e-48(a)
17261726 Sec. 32 July 1, 2023 4e-72
17271727 Sec. 33 July 1, 2023 10a-255
17281728 Sec. 34 July 1, 2023 15-31b(a)(15)
17291729 Sec. 35 July 1, 2023 15-31b(b) and (c)
17301730 Sec. 36 July 1, 2023 10-357b(c)
17311731 Sec. 37 July 1, 2023 10a-196
17321732 Sec. 38 July 1, 2023 10a-204b(s)
17331733 Sec. 39 July 1, 2023 10a-243
17341734 Sec. 40 July 1, 2023 12-806(b)(16)
17351735 Sec. 41 July 1, 2023 12-815 Substitute Bill No. 1223
17361736
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17411741
17421742 Sec. 42 July 1, 2023 22a-268
17431743 Sec. 43 July 1, 2023 31-49h(14)
17441744 Sec. 44 July 1, 2023 38a-1083(13)
17451745
1746+Statement of Legislative Commissioners:
1747+In Section 10, "that take effect on or after July 1, 2023," was added for
1748+consistency.
17461749
17471750 GAE Joint Favorable Subst.
1748-APP Joint Favorable
17491751