LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223-R02- SB.docx 1 of 47 General Assembly Substitute Bill No. 1223 January Session, 2023 AN ACT CONCERNING THE STATE CONTRACTING STANDARDS BOARD. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective from passage) (a) Notwithstanding any 1 provision of the general statutes, the appropriations recommended for 2 the State Contracting Standards Board shall be the estimates of 3 expenditure requirements transmitted to the Secretary of the Office of 4 Policy and Management by the executive director of the board and the 5 recommended adjustments and revisions of such estimates shall be the 6 recommended adjustments and revisions, if any, transmitted by said 7 executive director to the Office of Policy and Management. 8 (b) Notwithstanding any provision of the general statutes, the 9 Governor shall not reduce allotment requisitions or allotments in force 10 concerning the State Contracting Standards Board. 11 Sec. 2. Section 4e-1 of the general statutes is repealed and the 12 following is substituted in lieu thereof (Effective July 1, 2023): 13 For the purposes of this section and sections [4e-1] 4e-2 to 4e-47, 14 inclusive, as amended by this act: 15 (1) "Best value selection" means a contract selection process in which 16 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 2 of 47 the award of a contract is based on a combination of quality, timeliness 17 and cost factors; 18 (2) "Bid" means an offer, submitted in response to an invitation to bid, 19 to furnish supplies, materials, equipment, construction or contractual 20 services to a state contracting agency under prescribed conditions at a 21 stated price; 22 (3) "Bidder" means a business submitting a bid in response to an 23 invitation to bid by a state contracting agency; 24 (4) "Business" means any individual or sole proprietorship, 25 partnership, firm, corporation, trust, limited liability company, limited 26 liability partnership, joint stock company, joint venture, association or 27 other legal entity through which business for profit or not-for-profit is 28 conducted; 29 (5) "Competitive bidding" means the submission of prices by a 30 business competing for a contract to provide supplies, materials, 31 equipment or contractual services to a state contracting agency, under a 32 procedure in which the contracting authority does not negotiate prices, 33 as set forth in statutes and regulations concerning procurement; 34 (6) "Consultant" means (A) any architect, professional engineer, 35 landscape architect, land surveyor, accountant, interior designer, 36 environmental professional or construction administrator, who is 37 registered or licensed to practice such person's profession in accordance 38 with the applicable provisions of the general statutes, (B) any planner or 39 any environmental, management or financial specialist, or (C) any 40 person who performs professional work in areas including, but not 41 limited to, educational services, medical services, information 42 technology and real estate appraisal; 43 (7) "Consultant services" means those professional services rendered 44 by a consultant and any incidental services that a consultant and those 45 in the consultant's employ are authorized to perform; 46 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 3 of 47 (8) "Contract" [or "state contract"] means an agreement or a 47 combination or series of agreements between a state contracting agency 48 [or quasi-public agency] and a business for: 49 (A) A project for the construction, reconstruction, alteration, 50 remodeling, repair or demolition of any public building, public work, 51 mass transit, rail station, parking garage, rail track or airport; 52 (B) Services, including, but not limited to, consultant and professional 53 services; 54 (C) The acquisition or disposition of personal property; 55 (D) The provision of goods and services, including, but not limited 56 to, the use of purchase of services contracts and personal service 57 agreements; 58 (E) The provision of information technology, state agency 59 information system or telecommunication system facilities, equipment 60 or services; 61 (F) A lease; or 62 (G) A licensing agreement; 63 "Contract" [or "state contract"] does not include a contract between a 64 state contracting agency [or a quasi-public agency] and a political 65 subdivision of the state; 66 (9) "Term contract" means the agreement reached when the state 67 accepts a bid or proposal to furnish supplies, materials, equipment or 68 contractual services at a stated price for a specific period of time in 69 response to an invitation to bid; 70 (10) "Contract risk assessment" means (A) the identification and 71 evaluation of loss exposures and risks, including, but not limited to, 72 business and legal risks associated with the contracting process and the 73 contracted goods and services, and (B) the identification, evaluation and 74 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 4 of 47 implementation of measures available to minimize potential loss 75 exposures and risks; 76 (11) "Contractor" means any business that is awarded, or is a 77 subcontractor under, a contract or an amendment to a contract with a 78 state contracting agency under statutes and regulations concerning 79 procurement, including, but not limited to, a small contractor, minority 80 business enterprise, an individual with a disability, as defined in section 81 4a-60, or an organization providing products and services by persons 82 with disabilities; 83 (12) "Contractual services" means the furnishing of labor by a 84 contractor, not involving the delivery of a specific end product other 85 than reports, which are merely incidental to the required performance 86 and includes any and all laundry and cleaning service, pest control 87 service, janitorial service, security service, the rental and repair, or 88 maintenance, of equipment, machinery and other [state-owned] 89 personal property owned by a state contracting agency, advertising and 90 photostating, mimeographing, human services and other service 91 arrangements where the services are provided by persons other than 92 state employees or quasi-public agency employees. "Contractual 93 services" includes the design, development and implementation of 94 technology, communications or telecommunications systems or the 95 infrastructure pertaining thereto, including hardware and software and 96 services for which a contractor is conferred a benefit by the state, 97 whether or not compensated by the state. "Contractual services" does 98 not include employment agreements or collective bargaining 99 agreements; 100 (13) "Data" means recorded information, regardless of form or 101 characteristic; 102 (14) "Vote of two-thirds of the members of the board present and 103 voting" means a vote by the State Contracting Standards Board that is 104 agreed upon by two-thirds of the members of the State Contracting 105 Standards Board present and voting for a particular purpose and that 106 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 5 of 47 includes the vote of one member of the board appointed by a legislative 107 leader; 108 (15) "Electronic" means electrical, digital, magnetic, optical, 109 electromagnetic, or any other similar technology; 110 (16) "Emergency procurement" means procurement by a state 111 contracting agency, [quasi-public agency, as defined in section 1-120,] 112 judicial department or constituent unit of higher education that is made 113 necessary by a sudden, unexpected occurrence that poses a clear and 114 imminent danger to public safety or requires immediate action to 115 prevent or mitigate the loss or impairment of life, health, property or 116 essential public services or in response to a court order, settlement 117 agreement or other similar legal judgment; 118 (17) "Equipment" means personal property of a durable nature that 119 retains its identity throughout its useful life; 120 (18) "Materials" means items required to perform a function or used 121 in a manufacturing process, particularly those incorporated into an end 122 product or consumed in its manufacture; 123 (19) "Nonprofit agency" means any organization that is not a for-124 profit business under Section 501(c)(3) of the Internal Revenue Code of 125 1986, or any subsequent corresponding internal revenue code of the 126 United States, as amended from time to time, [amended,] makes no 127 distribution to its members, directors or officers and provides services 128 contracted for by (A) the state or a quasi-public agency, or (B) a nonstate 129 entity; 130 (20) "Professional services" means any type of service to the public 131 that requires that members of a profession rendering such service obtain 132 a license or other legal authorization as a condition precedent to the 133 rendition thereof, including, but not limited to, the professional services 134 of architects, professional engineers, or jointly by architects and 135 professional engineers, landscape architects, certified public 136 accountants and public accountants, land surveyors, attorneys-at-law, 137 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 6 of 47 psychologists, licensed marital and family therapists, licensed 138 professional counselors and licensed clinical social workers as well as 139 such other professional services described in section 33-182a; 140 (21) "Privatization contract" means an agreement or series of 141 agreements between a state contracting agency and a person or entity in 142 which such person or entity agrees to provide services that are 143 substantially similar to and in lieu of services provided, in whole or in 144 part, by state employees or quasi-public agency employees, other than 145 contracts with a nonprofit agency, which are in effect as of January 1, 146 2009, and which through a renewal, modification, extension or 147 rebidding of contracts continue to be provided by a nonprofit agency; 148 (22) "Procurement" means contracting for, buying, purchasing, 149 renting, leasing or otherwise acquiring or disposing of, any supplies, 150 services, including but not limited to, contracts for purchase of services 151 and personal service agreements, interest in real property, or 152 construction, and includes all government functions that relate to such 153 activities, including best value selection and qualification based 154 selection; 155 (23) "Proposer" means a business submitting a proposal to a state 156 contracting agency in response to a request for proposals or other 157 competitive sealed proposal; 158 (24) "Public record" means a public record, as defined in section 1-159 200; 160 (25) "Qualification based selection" means a contract selection process 161 in which the award of a contract is primarily based on an assessment of 162 contractor qualifications and on the negotiation of a fair and reasonable 163 price; 164 (26) "Regulation" means regulation, as defined in section 4-166; 165 (27) "Request for proposals" means all documents, whether attached 166 or incorporated by reference, utilized for soliciting proposals; 167 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 7 of 47 (28) "State contracting agency" means any executive branch agency, 168 board, commission, department, office, institution, [or] council or quasi-169 public agency. "State contracting agency" does not include the judicial 170 branch, the legislative branch, the offices of the Secretary of the State, 171 the State Comptroller, the Attorney General, the State Treasurer, with 172 respect to their constitutional functions, any state agency with respect 173 to contracts specific to the constitutional and statutory functions of the 174 office of the State Treasurer. For the purposes of section 4e-16, as 175 amended by this act, "state contracting agency" includes any constituent 176 unit of the state system of higher education and [for the purposes of 177 section 4e-19, "state contracting agency" includes the State Education 178 Resource Center, established under section 10-4q] The University of 179 Connecticut Health Center Finance Corporation; 180 (29) "Subcontractor" means a subcontractor of a contractor for work 181 under a contract or an amendment to a contract; 182 (30) "Supplies" means any and all articles of personal property, 183 including, but not limited to, equipment, materials, printing, insurance 184 and leases of real property, excluding land or a permanent interest in 185 land furnished to or used by any state agency; 186 (31) "Infrastructure facility" means a building, structure or network 187 of buildings, structures, pipes, controls and equipment that provide 188 transportation, utilities, public education or public safety services. 189 [Infrastructure facility] "Infrastructure facility" includes government 190 office buildings, public schools, jails, water treatment plants, 191 distribution systems and pumping stations, wastewater treatment 192 plants, collections systems and pumping stations, solid waste disposal 193 plants, incinerators, landfills, and related facilities, public roads and 194 streets, highways, public parking facilities, public transportation 195 systems, terminals and rolling stock, rail, air and water port structures, 196 terminals and equipment; [and] 197 (32) "State employee" means state employee, as defined in section 5-198 154 and, for purposes of section 4e-16, as amended by this act, [state 199 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 8 of 47 employee] "state employee" includes an employee of any state 200 contracting agency that is not a quasi-public agency; and 201 (33) "Quasi-public agency" has the same meaning as provided in 202 section 1-120. 203 Sec. 3. Subsections (g) and (h) of section 4e-2 of the general statutes 204 are repealed and the following is substituted in lieu thereof (Effective July 205 1, 2023): 206 (g) The board shall appoint a Chief Procurement Officer for a term 207 not to exceed six years, unless reappointed pursuant to the provisions 208 of this subsection. The Chief Procurement Officer shall report to the 209 board and annually be evaluated by, and serve at the pleasure of, the 210 board. For administrative purposes only, the Chief Procurement Officer 211 shall be supervised by the executive director. 212 (1) The Chief Procurement Officer shall be responsible for carrying 213 out the policies of the board relating to procurement including, but not 214 limited to, oversight, investigation, auditing, agency procurement 215 certification and procurement and project management training and 216 enforcement of [said] such policies as well as the application of such 217 policies to the screening and evaluation of current and prospective 218 contractors. The Chief Procurement Officer may enter into such 219 contractual agreements as may be necessary for the discharge of the 220 duties as set forth in this subsection and by the board, including, but not 221 limited to, recommending best practices and providing operational and 222 administrative assistance to state agencies determined, by the board, to 223 be in violation of sections 4e-16 to 4e-47, inclusive, as amended by this 224 act. 225 (2) In addition to the duties set forth by the board, the Chief 226 Procurement Officer shall (A) oversee state contracting agency 227 compliance with the provisions of statutes and regulations concerning 228 procurement; (B) monitor and assess the performance of the 229 procurement duties of each agency procurement officer; (C) administer 230 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 9 of 47 the certification system and monitor the level of agency compliance with 231 the requirements of statutes and regulations concerning procurement, 232 including, but not limited to, the education and training, performance 233 and qualifications of agency procurement officers; (D) review and 234 monitor the procurement processes of each state contracting agency [, 235 quasi-public agencies] and institutions of higher education; and (E) 236 serve as chairperson of the Contracting Standards Advisory Council 237 and an ex-officio member of the Vendor and Citizen Advisory Panel. 238 (h) The board may contract with consultants and professionals on a 239 temporary or project by project basis, and [may] shall employ, subject 240 to the provisions of chapter 67, [such] not less than five full-time 241 employees and may employ additional employees as may be necessary 242 to carry out the provisions of this section. 243 Sec. 4. Subdivision (2) of subsection (a) of section 4e-3 of the general 244 statutes is repealed and the following is substituted in lieu thereof 245 (Effective July 1, 2023): 246 (2) Any state contracting agency's contracting and procurement 247 processes, including, but not limited to, leasing and property transfers, 248 purchasing or leasing of supplies, materials or equipment, consultant or 249 consultant services, purchase of service agreements or privatization 250 contracts; and 251 Sec. 5. Section 4e-4 of the general statutes is repealed and the 252 following is substituted in lieu thereof (Effective July 1, 2023): 253 Except as otherwise provided in the general statutes, the board shall 254 have the following authority and responsibilities with respect to 255 procurements by state contracting agencies: 256 [(a)] (1) Recommend the repeal of repetitive, conflicting or obsolete 257 statutes concerning [state] procurement; 258 [(b)] (2) Review and make recommendations concerning proposed 259 legislation and regulations concerning procurement, management, 260 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 10 of 47 control, and disposal of any and all supplies, services, and construction 261 to be procured by [the] state contracting agencies, including, but not 262 limited to: 263 [(1)] (A) Conditions and procedures for delegation of procurement 264 authority; 265 [(2)] (B) Prequalification, suspension, debarment and reinstatement 266 of prospective bidders and contractors; 267 [(3)] (C) Small purchase procedures; 268 [(4)] (D) Conditions and procedures for the procurement of 269 perishables and items for resale; 270 [(5)] (E) Conditions and procedures for the use of source selection 271 methods authorized by statutes and regulations concerning 272 procurement; 273 [(6)] (F) Conditions and procedures for the use of emergency 274 procurements; 275 [(7)] (G) Conditions and procedures for the selection of contractors by 276 processes or methods that restrict full and open competition; 277 [(8)] (H) The opening or rejection of bids and offers, and waiver of 278 errors in bids and offers; 279 [(9)] (I) Confidentiality of technical data and trade secrets submitted 280 by actual or prospective bidders; 281 [(10)] (J) Partial, progressive and multiple awards; 282 [(11)] (K) Supervision of storerooms and inventories, including 283 determination of appropriate stock levels and the management, 284 transfer, sale or other disposal of publicly-owned supplies; 285 [(12)] (L) Definitions and classes of contractual services and 286 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 11 of 47 procedures for acquiring such services; 287 [(13)] (M) Regulations providing for conducting cost and price 288 analysis; 289 [(14)] (N) Use of payment and performance bonds; 290 [(15)] (O) Guidelines for use of cost principles in negotiations, 291 adjustments and settlements; and 292 [(16)] (P) Identification of procurement best practices; 293 [(c)] (3) Adopt regulations, pursuant to chapter 54, to carry out the 294 provisions of statutes concerning procurement, in order to facilitate 295 consistent application of the law and require the implementation of 296 procurement best practices; 297 [(d)] (4) Make recommendations with regard to information systems 298 for [state] procurement including, but not limited to, data element and 299 design and the State Contracting Portal; 300 [(e)] (5) Develop a guide to state statutes and regulations concerning 301 procurement, for use by all state contracting agencies; 302 [(f)] (6) Assist state contracting agencies in complying with the 303 statutes and regulations concerning procurement by providing 304 guidance, models, advice and practical assistance to state contracting 305 agency staff relating to: [(1)] (A) Buying the best service at the best price, 306 [(2)] (B) properly selecting contractors, and [(3)] (C) drafting contracts 307 that achieve state goals of accountability, transparency and results 308 based outcomes and to protect taxpayers' interest; 309 [(g)] (7) Train and oversee the agency procurement officer of each 310 state contracting agency and any contracting officers thereunder; 311 [(h)] (8) Review and certify, on or after January 1, 2009, that a state 312 contracting agency's procurement processes are in compliance with 313 statutes and regulations concerning procurement by: 314 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 12 of 47 [(1)] (A) Establishing procurement and project management 315 education and training criteria and certification procedures for agency 316 procurement officers and contracting officers. All agency procurement 317 officers and contracting officers designated under this [provision] 318 subparagraph shall be required to maintain the certification in good 319 standing at all times while performing procurement functions; 320 [(2)] (B) Approving an ethics training course, in consultation with the 321 Office of State Ethics, including, but not limited to, state employees and 322 quasi-public agency employees involved in procurement and for state 323 contractors and substantial subcontractors who are prequalified 324 pursuant to chapter 58a. Such ethics training course may be developed 325 and provided by the Office of State Ethics or by any person, firm or 326 corporation provided such course is approved by the State Contracting 327 Standards Board; 328 [(i)] (9) Recertify each state contracting agency's procurement 329 processes, triennially, and provide agencies with notice of any 330 certification deficiency and exercise those powers authorized by section 331 4e-34, as amended by this act, 4e-39 or 4e-40, as amended by this act, as 332 applicable, if a determination of noncompliance is made; 333 [(j)] (10) Define the contract data reporting requirements to the board 334 for state contracting agencies concerning information on: [(1)] (A) The 335 number and type of [state] contracts of each state contracting agency 336 currently in effect state-wide; [(2)] (B) the term and dollar value of such 337 contracts; [(3)] (C) a list of client agencies; [(4)] (D) a description of 338 services purchased under such contracts; [(5)] (E) contractor names; [(6)] 339 (F) an evaluation of contractor performance, including, but not limited 340 to records pertaining to the suspension or disqualification of 341 contractors, and assuring such information is available on the State 342 Contracting Portal; and [(7)] (G) a list of contracts and contractors 343 awarded without full and open competition stating the reasons [for] 344 therefor and identifying the approving authority; and 345 [(k)] (11) Provide the Governor and the joint standing committee of 346 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 13 of 47 the General Assembly having cognizance of matters relating to 347 government administration with recommendations concerning the 348 statutes and regulations concerning procurement. 349 Sec. 6. Subsections (a) to (c), inclusive, of section 4e-5 of the general 350 statutes are repealed and the following is substituted in lieu thereof 351 (Effective July 1, 2023): 352 (a) (1) The head of each state contracting agency shall appoint an 353 agency procurement officer. Such officer shall serve as the liaison 354 between the agency and the Chief Procurement Officer on all matters 355 relating to the agency's procurement activity, including, but not limited 356 to, implementation and compliance with the provisions of statutes and 357 regulations concerning procurement and any policies or regulations 358 adopted by the board, coordination of the training and education of 359 agency procurement employees and any person serving on the 360 Contracting Standards Advisory Council; 361 (2) The agency procurement officer shall be responsible for (A) 362 ensuring that any invitation to bid, request for proposals or any other 363 solicitation for goods and services issued on or after July 1, 2023, 364 contains a notice of the rights of prospective bidders, proposers or 365 prospective contractors under sections 4e-36, 4e-39 and 4e-40, as 366 amended by this act, (B) assuring that contractors are properly screened 367 prior to the award of a contract, (C) ensuring contractors are advised of 368 their rights under sections 4e-36, 4e-39 and 4e-40, as amended by this 369 act, prior to entering into a contract on or after July 1, 2023, (D) ensuring 370 that, upon the award of such a contract, unsuccessful bidders, proposers 371 or respondents are advised of their rights under sections 4e-36, 4e-39 372 and 4e-40, as amended by this act, (E) evaluating contractor 373 performance during and at the conclusion of a contract, (F) submitting 374 written evaluations to a central data repository to be designated by the 375 board, and (G) creating a project management plan for the agency with 376 annual reports to the board pertaining to procurement projects within 377 the agency. 378 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 14 of 47 (b) The State Contracting Standards Board, with the advice and 379 assistance of the Commissioner of Administrative Services, shall 380 develop a standardized state procurement and project management 381 education and training program. Such education and training program 382 shall develop education, training and professional development 383 opportunities for employees of state contracting agencies charged with 384 procurement responsibilities. The education and training program shall 385 educate such employees in general business acumen and on proper 386 purchasing procedures as established in statutes and regulations 387 concerning procurement with an emphasis on ethics, fairness, 388 consistency and project management. Participation in the education and 389 training program shall be required of any supervisory and 390 nonsupervisory [state] employees in state contracting agencies with 391 responsibility for buying, purchasing, renting, leasing or otherwise 392 acquiring any supplies, service or construction, including the 393 preparation of the description of requirements, selection and solicitation 394 of sources, preparation and award of contracts and all phases of contract 395 administration. 396 (c) The state procurement and project management education and 397 training program shall include, but shall not be limited to (1) training 398 and education concerning federal, state and municipal procurement 399 processes, including the statutes and regulations concerning 400 procurement; (2) training and education courses developed in 401 cooperation with the Office of State Ethics, the Freedom of Information 402 Commission, the State Elections Enforcement Commission, the 403 Commission on Human Rights and Opportunities, the office of the 404 Attorney General and any other state agency the board determines is 405 necessary in carrying out statutes and regulations concerning 406 procurement; (3) providing technical assistance to state contracting 407 agencies and municipalities for implementing statutes and regulations 408 concerning procurement, regulations, policies and standards developed 409 by the board; (4) training to current and prospective contractors and 410 vendors and others seeking to do business with [the] state contracting 411 agencies; and (5) training and education of state employees and quasi-412 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 15 of 47 public agency employees in the area of best procurement practices in 413 [state] purchasing with the goal of achieving the level of acumen 414 necessary to achieve the objectives of statutes and regulations 415 concerning procurement. 416 Sec. 7. Subsection (a) of section 4e-7 of the general statutes is repealed 417 and the following is substituted in lieu thereof (Effective July 1, 2023): 418 (a) For cause, the State Contracting Standards Board may review, 419 terminate or recommend to a state contracting agency the termination 420 of any contract or procurement agreement undertaken by any state 421 contracting agency after providing fifteen days' notice to the state 422 contracting agency and the applicable contractor, and consulting with 423 the Attorney General. Such termination of a contract or procurement 424 agreement by the board may occur only after (1) the board has consulted 425 with the state contracting agency to determine the impact of an 426 immediate termination of the contract, (2) a determination has been 427 made jointly by the board and the state contracting agency that an 428 immediate termination of the contract will not create imminent peril to 429 the public health, safety or welfare, (3) a vote of two-thirds of the 430 members of the board present and voting for that purpose, and (4) the 431 board has provided the state contracting agency and the contractor with 432 opportunity for a hearing conducted pursuant to the provisions of 433 chapter 54. Such action shall be accompanied by notice to the state 434 contracting agency and any other affected party. For the purpose of this 435 section, "for cause" means: (A) A violation of section 1-84 or 1-86e, as 436 determined by the Citizen's Ethics Advisory Board; (B) wanton or 437 reckless disregard of any state or quasi-public agency contracting and 438 procurement process by any person substantially involved in such 439 contract or state contracting agency; or (C) notification from the 440 Attorney General to the state contracting agency that an investigation 441 pursuant to section 4-61dd has concluded that the process by which 442 such contract was awarded was compromised by fraud, collusion or any 443 other criminal violation. Nothing in this section shall be construed to 444 limit the authority of the board as described in section 4e-6. 445 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 16 of 47 Sec. 8. Section 4e-8 of the general statutes is repealed and the 446 following is substituted in lieu thereof (Effective July 1, 2023): 447 There is established a Contracting Standards Advisory Council, 448 which shall consist of representatives from the Office of Policy and 449 Management, Departments of Administrativ e Services and 450 Transportation, [and] representatives of at least three additional state 451 contracting agencies, including at least one human services related state 452 agency, to be designated by the Governor, and at least four additional 453 state contracting agencies that are quasi-public agencies, two to be 454 appointed by the speaker of the House of Representatives and two to be 455 appointed by the president pro tempore of the Senate. The Chief 456 Procurement Officer shall be a member of the council and serve as 457 chairperson. The advisory council shall meet at least four times per year 458 to discuss [state] procurement issues and to make recommendations for 459 improvement of the procurement processes to the State Contracting 460 Standards Board. The advisory council may conduct studies, research 461 and analyses and make reports and recommendations with respect to 462 subjects or matters within the jurisdiction of the State Contracting 463 Standards Board. 464 Sec. 9. Subsection (a) of section 4e-10 of the general statutes is 465 repealed and the following is substituted in lieu thereof (Effective July 1, 466 2023): 467 (a) On or before July 1, 2010, the board shall submit to the Governor 468 and the General Assembly such legislation as is necessary to permit state 469 contracting agencies, not including [quasi-publics] quasi-public 470 agencies, institutions of higher education, and municipal procurement 471 processes utilizing state funds, to carry out their functions under 472 statutes and regulations concerning procurement. 473 Sec. 10. Section 4e-14 of the general statutes is repealed and the 474 following is substituted in lieu thereof (Effective July 1, 2023): 475 On and after June 1, 2010, all [state] contracts of each state contracting 476 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 17 of 47 agency that is not a quasi-public agency that take effect on or after June 477 1, 2010, shall contain provisions to ensure accountability, transparency 478 and [results based] results-based outcomes, as prescribed by the State 479 Contracting Standards Board. On and after June 1, 2010, all state 480 contracts of the legislative branch and the judicial branch that take effect 481 on or after June 1, 2010, shall contain provisions to ensure 482 accountability, transparency and [results based] results-based 483 outcomes. On and after July 1, 2023, all contracts of each state 484 contracting agency that is a quasi-public agency that take effect on or 485 after July 1, 2023, shall contain provisions to ensure accountability, 486 transparency and results-based outcomes. 487 Sec. 11. Subsections (c) and (d) of section 4e-16 of the general statutes 488 are repealed and the following is substituted in lieu thereof (Effective July 489 1, 2023): 490 (c) (1) If such cost-benefit analysis identifies a cost savings to the state 491 contracting agency of ten per cent or more, and such privatization 492 contract will not diminish the quality of such service, the state 493 contracting agency shall develop a business case, in accordance with the 494 provisions of subsection (d) of this section, in order to evaluate the 495 feasibility of entering into any such contract and to identify the potential 496 results, effectiveness and efficiency of such contract. 497 (2) If such cost-benefit analysis identifies a cost savings of less than 498 ten per cent to the state contracting agency and such privatization 499 contract will not diminish the quality of such service, the state 500 contracting agency may develop a business case, in accordance with the 501 provisions of subsection (d) of this section, in order to evaluate the 502 feasibility of entering into any such contract and to identify the potential 503 results, effectiveness and efficiency of such contract, provided there is a 504 significant public policy reason to enter into such privatization contract. 505 Any such business case shall be approved in accordance with the 506 provisions of subdivision (4) of subsection (h) of this section. 507 (3) If any such proposed privatization contract would result in the 508 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 18 of 47 layoff, transfer or reassignment of one hundred or more state 509 contracting agency employees, after consulting with the potentially 510 affected bargaining units, if any, the state contracting agency shall notify 511 the state employees or quasi-public agency employees of such 512 bargaining unit, as applicable, after such cost-benefit analysis is 513 completed. Such state contracting agency shall provide an opportunity 514 for [said] such employees to reduce the costs of conducting the 515 operations to be privatized and provide reasonable resources for the 516 purpose of encouraging and assisting such [state] employees to organize 517 and submit a bid to provide the services that are the subject of the 518 potential privatization contract. The state contracting agency shall retain 519 sole discretion in determining whether to proceed with the privatization 520 contract, provided the business case for such contract is approved by the 521 board. 522 (d) Any business case developed by a state contracting agency for the 523 purpose of complying with subsection (c) of this section shall include: 524 (1) The cost-benefit analysis as described in subsection (b) of this section, 525 (2) a detailed description of the service or activity that is the subject of 526 such business case, (3) a description and analysis of the state contracting 527 agency's current performance of such service or activity, (4) the goals to 528 be achieved through the proposed privatization contract and the 529 rationale for such goals, (5) a description of available options for 530 achieving such goals, (6) an analysis of the advantages and 531 disadvantages of each option, including, at a minimum, potential 532 performance improvements and risks attendant to termination of the 533 contract or rescission of such contract, (7) an analysis of the potential 534 impact of the proposed privatization contract on workers of color and 535 workers who are women, including whether such privatization contract 536 will lessen or increase historical patterns that produce inequities 537 between such workers and other workers, (8) a description of the 538 current market for the services or activities that are the subject of such 539 business case, [(8)] (9) an analysis of the quality of services as gauged by 540 standardized measures and key performance requirements including 541 compensation, turnover, and staffing ratios, [(9)] (10) a description of 542 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 19 of 47 the specific results-based performance standards that shall, at a 543 minimum be met, to ensure adequate performance by any party 544 performing such service or activity, [(10)] (11) the projected time frame 545 for key events from the beginning of the procurement process through 546 the expiration of a contract, if applicable, [(11)] (12) a specific and 547 feasible contingency plan that addresses contractor nonperformance 548 and a description of the tasks involved in and costs required for 549 implementation of such plan, and [(12)] (13) a transition plan, if 550 appropriate, for addressing changes in the number of agency personnel, 551 affected business processes, employee transition issues, and 552 communications with affected stakeholders, such as agency clients and 553 members of the public, if applicable. Such transition plan shall contain 554 a reemployment and retraining assistance plan for employees who are 555 not retained by the state or a quasi-public agency or employed by the 556 contractor. If the primary purpose of the proposed privatization 557 contract is to provide a core governmental function, such business case 558 shall also include information sufficient to rebut the presumption that 559 such core governmental function should not be privatized. Such 560 presumption shall not be construed to prohibit a state contracting 561 agency from contracting for specialized technical expertise not available 562 within such agency, provided such agency shall retain responsibility for 563 such core governmental function. For the purposes of this section, "core 564 governmental function" means a function for which the primary 565 purpose is (A) the inspection for adherence to health and safety 566 standards because public health or safety may be jeopardized if such 567 inspection is not done or is not done in a timely or proper manner, (B) 568 the establishment of statutory, regulatory or contractual standards to 569 which a regulated person, entity or state contractor shall be held, (C) the 570 enforcement of statutory, regulatory or contractual requirements 571 governing public health or safety, [or] (D) criminal or civil law 572 enforcement, or (E) the provision of essential human services to 573 residents of the state who would otherwise lack the support necessary 574 to assure basic human needs. If any part of such business case is based 575 upon evidence that the state contracting agency is not sufficiently 576 staffed to provide the core governmental function required by the 577 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 20 of 47 privatization contract, the state contracting agency shall also include 578 within such business case a plan for remediation of the understaffing to 579 allow such services to be provided directly by the state contracting 580 agency in the future. 581 Sec. 12. Subdivisions (2) to (4), inclusive, of subsection (l) of section 582 4e-16 of the general statutes are repealed and the following is 583 substituted in lieu thereof (Effective July 1, 2023): 584 (2) If such cost-benefit analysis identifies a ten per cent or more cost 585 savings to the state contracting agency from the use of such 586 privatization contract and such contract does not diminish the quality 587 of the service provided, such state contracting agency shall develop a 588 business case for the renewal of such privatization contract in 589 accordance with the provisions of subsections (d) and (e) of this section. 590 The board shall review such contract in accordance with the provisions 591 of subsections (f) to (h), inclusive, of this section and may approve such 592 renewal by the applicable vote of the board, provided any such renewal 593 that is estimated to cost in excess of one hundred fifty million dollars 594 annually or six hundred million dollars or more over the life of the 595 contract shall also be approved by the General Assembly prior to the 596 state contracting agency renewing such contract. If such renewal is 597 approved by the board and the General Assembly, if applicable, the 598 provisions of subsection (j) of this section shall apply to any proposed 599 amendment to such contract. 600 (3) If such cost-benefit analysis identifies a cost savings to the state 601 contracting agency of less than ten per cent, such state contracting 602 agency shall prepare a plan to have such service provided by state 603 employees [and] or, in the case of a state contracting agency that is a 604 quasi-public agency, the employees of such quasi-public agency, shall 605 begin to implement such plan, provided: (A) While such plan is 606 prepared, but prior to implementation of such plan, such state 607 contracting agency may develop a business case for such privatization 608 contract, in accordance with the provisions of subsection (d) of this 609 section, that achieves a cost savings to the state of ten per cent or more. 610 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 21 of 47 Any such business case shall be reviewed by the board in accordance 611 with the provisions of subsections (f) to (h), inclusive, of this section, and 612 may be approved by the applicable vote of the board; (B) such 613 privatization contract shall not be renewed with the vendor currently 614 providing such service unless: (i) There exists a significant public 615 interest in renewing such contract, and (ii) such renewal is approved by 616 a two-thirds vote of the board; (C) the state contracting agency may 617 enter into a contract with a term of one year or less for the provision of 618 such service until such state contracting agency implements such plan; 619 and (D) the procedure for the transfer of funds from the General Fund, 620 as described in section 4-94, may be utilized to allocate necessary 621 resources for the implementation of the provisions of this subdivision. 622 (4) Notwithstanding the provisions of subdivision (3) of this 623 subsection, the renewal of a privatization contract with a nonprofit 624 organization shall not be denied if the cost of increasing compensation 625 to employees performing the privatized service is the sole cause for such 626 contract not achieving a cost savings to the state contracting agency of 627 ten per cent or more. 628 Sec. 13. Subsection (n) of section 4e-16 of the general statutes is 629 repealed and the following is substituted in lieu thereof (Effective July 1, 630 2023): 631 (n) The State Contracting Standards Board, in consultation with the 632 Department of Administrative Services, shall: (1) Recommend and 633 implement standards and procedures for state contracting agencies to 634 develop business cases in connection with privatization contracts, 635 including templates for use by state contracting agencies when 636 submitting business cases to the board, and policies and procedures to 637 guide state contracting agencies to complete such business cases, and (2) 638 develop guidelines and procedures for assisting state employees or 639 quasi-public agency employees whose jobs are affected by a 640 privatization contract. 641 Sec. 14. Subsection (p) of section 4e-16 of the general statutes is 642 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 22 of 47 repealed and the following is substituted in lieu thereof (Effective July 1, 643 2023): 644 (p) Prior to entering into or renewing any privatization contract that 645 is not subject to the provisions of subsection (a) of this section, the state 646 contracting agency shall evaluate such contract to determine if entering 647 into or renewing such contract is the most cost-effective method of 648 delivering the service, by determining the costs, as defined in subsection 649 (b) of this section, of such service. The state contracting agency shall 650 perform such evaluation in accordance with a template prescribed by 651 the Secretary of the Office of Policy and Management, in consultation 652 with the board, pursuant to subsection (m) of this section, and such 653 evaluation shall be subject to verification by the [secretary] board. The 654 [secretary] board may waive the requirement for an evaluation of cost-655 effectiveness under this subsection upon a finding by the [secretary] 656 board that exigent or emergent circumstances necessitate such waiver. 657 Sec. 15. Section 4e-17 of the general statutes is repealed and the 658 following is substituted in lieu thereof (Effective July 1, 2023): 659 (a) Except as otherwise provided, the provisions of sections 4e-16 to 660 4e-47, inclusive, as amended by this act, shall apply to all contracts 661 solicited or entered into by [state contracting agencies] a state 662 contracting agency that is a state agency after June 1, 2010, and all 663 contracts solicited or entered into by a state contracting agency that is a 664 quasi-public agency on or after July 1, 2023. 665 (b) Except as otherwise provided, the provisions of sections 4e-16 to 666 4e-47, inclusive, as amended by this act, shall apply to every 667 expenditure of public funds by any state contracting agency, 668 irrespective of their source, involving any state or quasi-public agency 669 contracting and procurement processes, including, but not limited to, 670 leasing and property transfers, purchasing or leasing of supplies, 671 materials or equipment, consultant or consultant services, personal 672 service agreements, purchase of service agreements or privatization 673 contracts, as defined in section 4e-1, as amended by this act, and, 674 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 23 of 47 relating to contracts for the construction, reconstruction, alteration, 675 remodeling, repair or demolition of any public building, bridge or road. 676 (c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this 677 act, shall be construed to require the application of procurement statutes 678 or regulations to a procurement that involves the expenditure of federal 679 assistance or federal contract funds if federal law provides procurement 680 procedures applicable to the expenditure of such funds, to the extent 681 such federal procedures are inconsistent with state procurement 682 statutes or regulations. 683 Sec. 16. Section 4e-18 of the general statutes is repealed and the 684 following is substituted in lieu thereof (Effective July 1, 2023): 685 For the purpose of obtaining supplies, materials, equipment or 686 contractual services, except infrastructure facilities, the Commissioner 687 of Administrative Services shall establish a requisition system to be used 688 by state contracting agencies that are not quasi-public agencies to 689 initiate and authorize the procurement process. Such system shall be 690 approved by the State Contracting Standards Board. 691 Sec. 17. Subsection (c) of section 4e-21 of the general statutes is 692 repealed and the following is substituted in lieu thereof (Effective July 1, 693 2023): 694 (c) The State Contracting Standards Board, in consultation with the 695 Commissioner of Administrative Services, may waive the requirement 696 of competitive bidding or competitive negotiation in the case of minor, 697 nonrecurring or emergency purchases of ten thousand dollars or less in 698 amount, upon application of the state contracting agency. Any state 699 contracting agency that obtains such a waiver for such an emergency 700 purchase shall post notice of such emergency purchase on the Internet 701 web site of the state contracting agency prior to making such emergency 702 purchase. 703 Sec. 18. Section 4e-24 of the general statutes is repealed and the 704 following is substituted in lieu thereof (Effective July 1, 2023): 705 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 24 of 47 (a) [Not later than June 1, 2010, the State Contracting Standards 706 Board, in consultation with the Commissioner of Administrative 707 Services and any other appropriate award authority, shall adopt 708 regulations, in accordance with the provisions of chapter 54, permitting] 709 If an emergency [procurements when there exists] procurement is 710 deemed necessary by a state contracting agency due to a threat to public 711 health, welfare or safety, the state contracting agency shall give notice 712 to the board of the need for such emergency procurement. Such 713 emergency procurements shall be made with competition, as is 714 practicable under the circumstances. [Said regulations shall require that] 715 The state contracting agency shall (1) include a written determination of 716 the basis for the emergency and for the selection of the particular 717 contractor [be included] in the contract file and [transmitted] transmit 718 such determination to the Governor, the president pro tempore of the 719 Senate, the majority and minority leaders of the Senate, the speaker of 720 the House of Representatives and the majority and minority leaders of 721 the House of Representatives, and (2) post such determination on the 722 Internet web site of the state contracting agency. 723 (b) The State Contracting Standards Board may adopt regulations in 724 accordance with the provisions of chapter 54 to implement the 725 provisions of this section. 726 Sec. 19. Subsection (d) of section 4b-51 of the general statutes is 727 repealed and the following is substituted in lieu thereof (Effective July 1, 728 2023): 729 (d) (1) Notwithstanding any provision of the general statutes, the 730 Commissioner of Administrative Services may select consultants to be 731 on a list established for the purpose of providing any consultant 732 services. Such list shall be established as provided in sections 4b-56 and 733 4b-57, as amended by this act. [The] In the case of an emergency 734 procurement due to a threat to public health, welfare or safety, the 735 commissioner may enter into a contract with any consultant on such list 736 without inviting responses from such consultants to perform a range of 737 consultant services or to perform a range of tasks pursuant to a task 738 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 25 of 47 letter detailing services to be performed under such contract. 739 (2) Notwithstanding any provision of the general statutes, the 740 Commissioner of Administrative Services may (A) compile a list of 741 architects, professional engineers and construction administrators for 742 the limited purpose of providing consultant services for a particular 743 program involving various projects for the construction of new 744 buildings or renovations to existing buildings where such buildings are 745 under the operation and control of either the Military Department or the 746 Department of Energy and Environmental Protection, and (B) in the case 747 of an emergency procurement due to a threat to public health, welfare 748 or safety, enter into a contract with any architect, professional engineer 749 or construction administrator on such list for such limited purpose 750 without inviting responses from the persons on such list, except that the 751 Adjutant General may perf orm the functions described in 752 subparagraphs (A) and (B) of this subdivision for any such building 753 under the operation and control of the Military Department. 754 (3) As used in this subsection, "consultant" means "consultant" as 755 defined in section 4b-55, "consultant services" means "consultant 756 services" as defined in section 4b-55, and "program" means multiple 757 projects involving the planning, design, construction, repair, 758 improvement or expansion of specified buildings, facilities or site 759 improvements, wherein the work (A) will be of a repetitive nature, (B) 760 will share a common funding source that imposes particular 761 requirements, or (C) would be significantly facilitated if completed by 762 the same design professional or construction administrator. 763 Sec. 20. Subsection (a) of section 4b-57 of the general statutes is 764 repealed and the following is substituted in lieu thereof (Effective July 1, 765 2023): 766 (a) Whenever consultant services are required by the commissioner 767 in fulfilling the responsibilities under section 4b-1, and in the case of 768 each project, the commissioner shall invite responses from such firms by 769 posting notice on the State Contracting Portal, except that, in the case of 770 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 26 of 47 an emergency procurement, the commissioner may receive consultant 771 services under a contract entered into pursuant to subsection (d) of 772 section 4b-51, as amended by this act. The commissioner shall prescribe, 773 by regulations adopted in accordance with chapter 54, the advance 774 notice required for, the manner of submission, and conditions and 775 requirements of, such responses. 776 Sec. 21. Subsection (g) of section 4b-91 of the general statutes is 777 repealed and the following is substituted in lieu thereof (Effective July 1, 778 2023): 779 (g) Notwithstanding the provisions of this chapter regarding 780 competitive bidding procedures, in the case of an emergency 781 procurement due to a threat to public health, welfare or safety, the 782 commissioner may select and interview at least three responsible and 783 qualified general contractors who are prequalified pursuant to section 784 4a-100 and submit the three selected contractors to the construction 785 services award panels process described in section 4b-100a and any 786 regulation adopted by the commissioner. The commissioner may 787 negotiate with the successful bidder a contract which is both fair and 788 reasonable to the state for a community court project, the downtown 789 Hartford higher education center project, a correctional facility project, 790 a juvenile residential center project, or a student residential facility for 791 the Connecticut State University System that is a priority higher 792 education facility project. The Commissioner of Administrative 793 Services, prior to entering any such contract or performing any work on 794 such project, shall submit such contract to the State Properties Review 795 Board for review and approval or disapproval by the board, pursuant 796 to subsection (i) of this section. Any general contractor awarded a 797 contract pursuant to this subsection shall be subject to the same 798 requirements concerning the furnishing of bonds as a contractor 799 awarded a contract pursuant to subsection (b) of this section. 800 Sec. 22. Section 4e-27 of the general statutes is repealed and the 801 following is substituted in lieu thereof (Effective July 1, 2023): 802 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 27 of 47 Not later than June 1, 2010, the State Contracting Standards Board, in 803 consultation with the Attorney General, shall adopt regulations, in 804 accordance with the provisions of chapter 54, specifying the types of 805 contracts that may be used by state contracting agencies. Such 806 regulations shall specify that a cost-reimbursement contract may be 807 used only when a determination is made in writing by the agency 808 procurement officer that such contract is likely to be less costly to the 809 state contracting agency than any other type or that it is impracticable 810 to obtain the supplies, services or construction required except under 811 such a contract. 812 Sec. 23. Section 4e-31 of the general statutes is repealed and the 813 following is substituted in lieu thereof (Effective July 1, 2023): 814 When, for any reason, collusion or other anticompetitive practices are 815 suspected among any bidders or proposers for a [state] contract of a 816 state contracting agency, a notice of the relevant facts shall be 817 transmitted to the Attorney General by any affected party, including, 818 but not limited to, the state contracting agency, a bidder or a proposer. 819 Sec. 24. Section 4e-34 of the general statutes is repealed and the 820 following is substituted in lieu thereof (Effective July 1, 2023): 821 (a) After reasonable notice and hearing and consultation with the 822 relevant state contracting agency and the Attorney General, the State 823 Contracting Standards Board, acting through a subcommittee of three 824 members, appointed by the chairperson, which subcommittee shall 825 include not less than one legislative appointee, may disqualify any 826 contractor, bidder or proposer, for a period of not more than five years, 827 from bidding on, applying for or participating as a contractor or 828 subcontractor under, contracts with the state or quasi-public agencies. 829 Such disqualification shall be upon the vote of two-thirds of the 830 members of the subcommittee present and voting for that purpose. Such 831 hearing shall be conducted in accordance with the provisions of chapter 832 54. The subcommittee shall issue a written recommendation not later 833 than sixty days after the conclusion of such hearing, and shall state the 834 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 28 of 47 reason for the recommended action and, if the disqualification is 835 recommended, the period of time the contractor, bidder or proposer 836 shall be disqualified. In determining whether to disqualify a contractor, 837 bidder or proposer, the subcommittee shall consider the seriousness of 838 the acts or omissions of the contractor, bidder or proposer and any 839 mitigating factors. Such recommendation shall be submitted to the 840 board for action and sent to the contractor by certified mail, return 841 receipt requested. If disqualification is recommended, the contractor 842 shall have thirty days to submit comments to the board. Upon receipt of 843 the proposed recommendation by the subcommittee, the board shall 844 issue a written decision either adopting, rejecting or modifying the 845 subcommittee's recommendation. Such decision shall be issued not later 846 than thirty days after receipt by the board of the contractor's comments, 847 if any. The board shall send the decision to the contractor by certified 848 mail, return receipt requested. The written decision shall be a final 849 decision for purposes of sections 4-180 and 4-183. 850 (b) Causes for such disqualification shall include the following: 851 (1) Conviction of, or entry of a plea of guilty or nolo contendere or 852 admission to, the commission of a criminal offense as an incident to 853 obtaining or attempting to obtain a public or private contract or 854 subcontract, or in the performance of such contract or subcontract; 855 (2) Conviction of, or entry of a plea of guilty or nolo contendere or 856 admission to, the violation of any state or federal law for embezzlement, 857 theft, forgery, bribery, falsification or destruction of records, receiving 858 stolen property or any other offense indicating a lack of business 859 integrity or business honesty which affects responsibility as a [state] 860 contractor; 861 (3) Conviction of, or entry of a plea of guilty or nolo contendere or 862 admission to, a violation of any state or federal antitrust, collusion or 863 conspiracy law arising out of the submission of bids or proposals on a 864 public or private contract or subcontract; 865 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 29 of 47 (4) Accumulation of two or more suspensions pursuant to section 4e-866 35, as amended by this act, within a twenty-four-month period; 867 (5) A wilful, negligent or reckless failure to perform in accordance 868 with the terms of one or more contracts or subcontracts, agreements or 869 transactions with state contracting agencies; 870 (6) A history of failure to perform or of unsatisfactory performance 871 on one or more public contracts, agreements or transactions with state 872 contracting agencies; 873 (7) A wilful violation of a statutory or regulatory provision or 874 requirement applicable to a contract, agreement or transaction with 875 state contracting agencies; 876 (8) A wilful or egregious violation of the ethical standards set forth in 877 sections 1-84, 1-86e and 1-101nn, as determined by the Citizen's Ethics 878 Advisory Board; or 879 (9) Any other cause or conduct the board determines to be so serious 880 and compelling as to affect responsibility as a [state] contractor, 881 including, but not limited to: 882 (A) Disqualification by another state for cause; 883 (B) The fraudulent or criminal conduct of any officer, director, 884 shareholder, partner, employee or other individual associated with a 885 contractor, bidder or proposer of such contractor, bidder or proposer, 886 provided such conduct occurred in connection with the individual's 887 performance of duties for or on behalf of such contractor, bidder or 888 proposer and such contractor, bidder or proposer knew or had reason 889 to know of such conduct; 890 (C) The existence of an informal or formal business relationship with 891 a contractor who has been disqualified from bidding or proposing on 892 [state] contracts of any state contracting agency. 893 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 30 of 47 (c) Upon written request by the affected [state] contractor, bidder or 894 proposer, the State Contracting Standards Board may reduce the period 895 or extent of disqualification for a contractor, bidder or proposer if 896 documentation supporting any of the following reasons for 897 modification is provided to the board by the contractor, bidder or 898 proposer: 899 (1) Newly discovered material evidence; 900 (2) Reversal of the conviction upon which the disqualification was 901 based; 902 (3) Bona fide change in ownership or management; or 903 (4) Elimination of other causes for which the disqualification was 904 imposed. 905 Sec. 25. Section 4e-35 of the general statutes is repealed and the 906 following is substituted in lieu thereof (Effective July 1, 2023): 907 (a) For purposes of this section and sections 4e-37 and 4e-38, as 908 amended by this act, "contracting agency of the state" does not include 909 a quasi-public agency. After reasonable notice and a hearing, conducted 910 in accordance with the provisions of chapter 54, the department head of 911 any [state] contracting agency of the state may suspend any contractor, 912 bidder or proposer for a period of not more than six months from 913 bidding on, applying for or performing work as a contractor or 914 subcontractor under, contracts with the state. The department head 915 shall issue a written decision not later than ninety days after the 916 conclusion of such hearing and state in the decision the reasons for the 917 action taken and, if the contractor, bidder or proposer is being 918 suspended, the period of such suspension. In determining whether to 919 suspend a contractor, bidder or proposer, the department head shall 920 consider the seriousness of the acts or omissions of the contractor, 921 bidder or proposer and any mitigating factors. The department head 922 shall send such decision to the contractor and the State Contracting 923 Standards Board by certified mail, return receipt requested. Such 924 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 31 of 47 decision shall be a final decision for purposes of sections 4-180 and 4-925 183. 926 (b) Causes for such suspension shall include the following: 927 (1) Failure without good cause to perform in accordance with 928 specifications or within the time limits provided in the contract; 929 (2) A record of failure to perform or of unsatisfactory performance in 930 accordance with the terms of one or more contracts, provided failure to 931 perform or unsatisfactory performance caused by acts beyond the 932 control of the contractor shall not be considered to be a basis for 933 suspension; 934 (3) Any cause the complainant [state] contracting agency of the state 935 determines to be so serious and compelling as to affect the responsibility 936 of a state contractor, including suspension by another [state] contracting 937 agency of the state for cause; or 938 (4) A violation of the ethical standards set forth in section 1-84, 1-86e 939 or 1-101nn, as determined by the Citizen's Ethics Advisory Board. 940 (c) The State Contracting Standards Board may grant an exception 941 permitting a suspended contractor to participate in a particular contract 942 or subcontract upon a written determination by the board that there is 943 good cause for such exception and that such exception is in the best 944 interest of the state. 945 (d) The department head of each [state] contracting agency of the 946 state shall conduct reviews of contractors and shall file reports 947 pertaining to any of the reasons set forth in this section that may be the 948 basis for disqualification. 949 Sec. 26. Subsections (g) to (i), inclusive, of section 4e-37 of the general 950 statutes are repealed and the following is substituted in lieu thereof 951 (Effective July 1, 2023): 952 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 32 of 47 (g) In the event that the appeals review subcommittee or the board 953 determines that a procedural violation occurred, or that allegations of 954 an unauthorized or unwarranted, noncompetitive selection process 955 have been substantiated, the board shall direct the [state] contracting 956 agency of the state to take corrective action not later than thirty days 957 after the date of the subcommittee's or board's decision, as applicable. 958 (h) In the event such appeal is found to be frivolous by the appeals 959 review subcommittee or the full board, such frivolous appeal may serve 960 as a basis for disqualification pursuant to section 4e-34, as amended by 961 this act. 962 (i) Any three members of the board may request a full board review 963 of any contract deliberation or award process of a [state] contracting 964 agency of the state. 965 Sec. 27. Section 4e-38 of the general statutes is repealed and the 966 following is substituted in lieu thereof (Effective July 1, 2023): 967 The State Contracting Standards Board shall issue a decision in 968 writing or take other appropriate action on each appeal submitted 969 pursuant to section 4e-37, as amended by this act. A copy of any decision 970 shall be provided to all parties, the department head of the [state] 971 contracting agency of the state and the Chief Procurement Officer. 972 Sec. 28. Subdivision (2) of section 4e-40 of the general statutes is 973 repealed and the following is substituted in lieu thereof (Effective July 1, 974 2023): 975 (2) If the person awarded the contract acted in bad faith: 976 (A) The contract may be declared null and void; or 977 (B) The contract may be ratified and affirmed if such action is in the 978 best interests of the state, as determined by the State Contracting 979 Standards Board, in writing, without prejudice to the [state's] state 980 contracting agency's right to such damages as may be appropriate. 981 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 33 of 47 Sec. 29. Section 4e-45 of the general statutes is repealed and the 982 following is substituted in lieu thereof (Effective July 1, 2023): 983 With respect to infrastructure facilities, not later than June 1, 2010, the 984 State Contracting Standards Board, in consultation with the state 985 contracting agencies and the Attorney General, shall adopt regulations, 986 in accordance with the provisions of chapter 54, requiring the inclusion 987 in [state] contracts with any state contracting agency of clauses 988 providing for adjustments in prices, time of performance, remedies, 989 termination or other contract provisions necessary to protect the 990 interests of the state. 991 Sec. 30. Section 4e-46 of the general statutes is repealed and the 992 following is substituted in lieu thereof (Effective July 1, 2023): 993 Not later than June 1, 2010, the State Contracting Standards Board 994 shall adopt regulations, in accordance with the provisions of chapter 54, 995 concerning the procedure and circumstances under which a state 996 contracting agency may allow contract modification, change order, or 997 contract price adjustment under a construction contract with [the state] 998 a state contracting agency in excess of fifty thousand dollars. Such 999 regulations shall require that every contract modification, change order 1000 or contract price adjustment under a construction contract with [the 1001 state] a state contracting agency in excess of fifty thousand dollars shall 1002 be subject to prior written certification by the fiscal officer of the state 1003 contracting agency or other agency responsible for funding the project 1004 or the contract, or other official responsible for monitoring and 1005 reporting upon the status of the costs of the total project budget or 1006 contract budget, as to the effect of the contract modification, change 1007 order, or adjustment in contract price on the total project budget or the 1008 total contract budget. Such regulations shall further provide that in the 1009 event the certification of the fiscal officer or other responsible official 1010 discloses a resulting increase in the total project budget or the total 1011 contract budget, the agency procurement officer shall not execute or 1012 make such contract modification, change order, or adjustment in 1013 contract price unless sufficient funds are available or the scope of the 1014 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 34 of 47 project or contract is adjusted so as to permit the degree of completion 1015 that is feasible within the total project budget or total contract budget as 1016 it existed prior to the contract modification, change order, or adjustment 1017 in contract price under consideration provided, with respect to the 1018 validity, as to the contractor, of any executed contract modification, 1019 change order, or adjustment in contract price which the contractor has 1020 reasonably relied upon, it shall be presumed that there has been 1021 compliance with the provisions of this section. 1022 Sec. 31. Subsection (a) of section 4e-48 of the general statutes is 1023 repealed and the following is substituted in lieu thereof (Effective July 1, 1024 2023): 1025 (a) For the purposes of this section, "nonresident bidder" means a 1026 business that is not a resident of the state that submits a bid in response 1027 to an invitation to bid by a state contracting agency, "resident bidder" 1028 means a business that submits a bid in response to an invitation to bid 1029 by a state contracting agency and that has paid unemployment taxes or 1030 income taxes in this state during the twelve calendar months 1031 immediately preceding submission of such bid, has a business address 1032 in the state and has affirmatively claimed such status in the bid 1033 submission, and "contract" [means "contract" as defined in section 4e-1 1034 and "state contracting agency" means] and "state contracting agency" [, 1035 as defined] have the same meanings as provided in section 4e-1, as 1036 amended by this act. 1037 Sec. 32. Section 4e-72 of the general statutes is repealed and the 1038 following is substituted in lieu thereof (Effective July 1, 2023): 1039 As used in this section, "contract", "state contracting agency", "data" 1040 and "contractor" have the same meanings as provided in section 4e-1, as 1041 amended by this act. Any contract between a state contracting agency 1042 and a contractor that is entered into, renewed or amended on or after 1043 October 1, 2021, or, in the case of a state contracting agency that is a 1044 quasi-public agency, entered into, renewed or amended on or after July 1045 1, 2023, shall contain a provision authorizing the state contracting 1046 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 35 of 47 agency to access any data concerning such contract that is in the 1047 possession or control of the contractor upon demand in a format 1048 prescribed by the state contracting agency at no additional cost to such 1049 agency. 1050 Sec. 33. Section 10a-255 of the general statutes is repealed and the 1051 following is substituted in lieu thereof (Effective July 1, 2023): 1052 (a) To accomplish the purposes of sections 10a-250 to 10a-263, 1053 inclusive, the corporation may enter into joint ventures or shared service 1054 agreements to procure hospital facilities and to contract for services 1055 necessary or useful in connection with the procurement of hospital 1056 facilities. The corporation shall establish and adopt specific policies, 1057 rules and procedures on purchasing and contracting. Such policies, 1058 rules and procedures shall be approved by a two-thirds vote of its full 1059 board of directors. The corporation shall conduct its contracting and 1060 purchasing operations in accordance with such policies, rules and 1061 procedures. Notwithstanding any other provision of law to the contrary, 1062 the corporation may enter into joint ventures or shared service 1063 agreements and may procure hospital facilities and contract for any 1064 services necessary or useful in connection with such procurement either 1065 (1) pursuant to a process of open or competitive bidding, provided that 1066 (A) the corporation may determine the format, contents and scope of 1067 any joint venture or shared service agreement or any procurement of 1068 hospital facilities, and services in connection with such procurement, 1069 the conditions under which bidding shall take place and the schedule 1070 and stipulations for contract award, and (B) the corporation may select 1071 the contractor deemed to have submitted the most favorable bid, price 1072 and other factors considered, when, in the judgment of the corporation, 1073 such award is in the best interests of the hospital, or (2) if the 1074 corporation, in its discretion, determines that, due to the nature of the 1075 joint venture or shared service agreement or hospital facilities to be 1076 contracted for or procured, open or public bidding is either 1077 impracticable or not in the best interests of the hospital, through 1078 negotiation with such person or persons as the corporation may 1079 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 36 of 47 determine. The terms and conditions of joint ventures or shared service 1080 agreements or contracts for hospital facilities shall be determined by the 1081 corporation, as shall the fees or other compensation to be paid to such 1082 persons under such joint venture, shared service agreement or contract, 1083 provided any contract for construction by the corporation or a 1084 subsidiary of a hospital facility shall be subject to the provisions of 1085 section 31-53 and any joint venture agreement or shared service 1086 agreement of the corporation shall contain a neutrality clause signed by 1087 all parties to such joint venture agreement or shared service agreement 1088 prohibiting employer interference by such parties in union organizing 1089 and education campaigns, prohibiting discrimination in hiring based on 1090 past union activity and prohibiting harassment of employees engaged 1091 in labor organizing, all in compliance with section 31-104 and section 31-1092 105. The joint venture, shared service agreement or contracts entered 1093 into by the corporation shall not be subject to the approval of any state 1094 department, office or agency other than as provided in this section. 1095 Copies of all contracts of the corporation shall be maintained by the 1096 corporation at its offices as public records, subject to the exemption 1097 provided in subsection (i) of section 10a-253. Nothing in this subsection 1098 shall be deemed to restrict the discretion of the corporation to utilize its 1099 own staff and workforce for the performance of any of its assigned 1100 responsibilities and functions whenever, in the discretion of the 1101 corporation, it becomes necessary, convenient or desirable to do so. 1102 (b) Subject to the restrictions of subdivision (15) of section 10a-254 the 1103 corporation may contract with the hospital to provide services for the 1104 hospital through joint ventures or shared service agreements or to 1105 provide hospital facilities for the hospital, to provide insurance for the 1106 hospital as provided in section 10a-256 and to contract for claims 1107 management services, or to otherwise make hospital facilities or services 1108 provided by joint ventures or shared service agreements available for 1109 the hospital. For the hospital to enter into any contract for such services 1110 or hospital facilities or insurance or claims management services with 1111 the corporation, to pay any reasonable fees and charges established by 1112 the corporation for such services or hospital facilities or to pledge 1113 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 37 of 47 payment from any moneys made available by the state to the hospital 1114 including, but not limited to, resources of the hospital fund established 1115 and administered pursuant to sections 10a-127 and 10a-128, other funds 1116 of the state and proceeds of financings by the state for the payment of 1117 such fees and charges, it shall have the authorization of the Board of 1118 Trustees of The University of Connecticut. Such authorization shall be 1119 given by adoption of a resolution at a regularly or specially noticed 1120 meeting of said board of trustees. Any fees and charges so established 1121 shall be deemed to be direct expenses of the hospital for which the 1122 resources of the hospital fund may be used pursuant to section 10a-127 1123 and the State Treasurer is authorized to make payments of such fees and 1124 charges upon warrants issued by the State Comptroller, upon the order 1125 of authorized officers of The University of Connecticut, pursuant to such 1126 a resolution. The provisions of section 4a-57 and any provision of law 1127 relating to contract approval other than sections 10a-250 to 10a-263, 1128 inclusive, shall not apply to such contracts between the hospital and the 1129 corporation. Any such contract or contracts shall be upon such terms 1130 and conditions as the corporation and the hospital shall determine to be 1131 reasonable including, but not limited to, the reimbursement of all costs 1132 of planning, financing, acquisition, construction, operation and 1133 maintenance, and any claims arising therefrom. All payments of fees 1134 and charges required under any contract or agreement entered into 1135 pursuant to the provisions of this section are considered expenditures 1136 for public purposes by the state. Any contract between the hospital and 1137 the corporation that provides for the procurement by the corporation of 1138 hospital facilities or services as authorized by sections 10a-250 to 10a-1139 263, inclusive, shall provide that the hospital shall be required to pay, 1140 through service, lease, rental or installment sale payments for such 1141 hospital facilities or services, all project costs of such hospital facilities 1142 or services at such times and in such amounts as determined by the 1143 corporation and the hospital. Any such contract between the hospital 1144 and the corporation may contain provisions as to: (1) Pledging or 1145 assigning any part of moneys and revenues, including reimbursement 1146 allowances, derived by the hospital or the corporation, to secure 1147 payments required by such contract; (2) setting aside reserves and 1148 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 38 of 47 creating special funds and the disposition thereof; (3) defining the acts 1149 or omissions to act which shall constitute a default in the obligations and 1150 duties of the hospital or the corporation and providing for the rights and 1151 remedies of the hospital and the corporation in the event of such default; 1152 (4) any other matters which may be deemed necessary or desirable by 1153 the corporation to properly carry out its corporate purposes. 1154 (c) Any joint venture, shared service agreement or contract entered 1155 into by the corporation, or any of its subsidiaries under this section, shall 1156 comply with the applicable provisions of section 4e-16, as amended by 1157 this act, and shall be subject to the jurisdiction of the State Contracting 1158 Standards Board to the same extent as a constituent unit of higher 1159 education. 1160 Sec. 34. Subdivision (15) of subsection (a) of section 15-31b of the 1161 general statutes is repealed and the following is substituted in lieu 1162 thereof (Effective July 1, 2023): 1163 (15) Invest in, acquire, lease, purchase, own, manage, hold and 1164 dispose of real property and lease, convey or deal in or enter into 1165 agreements with respect to such property on any terms necessary or 1166 incidental to carrying out the purposes of sections 15-31a to 15-31i, 1167 inclusive, provided such transactions shall not be subject to approval, 1168 review or regulation by any state agency pursuant to title 4b or any other 1169 provision of the general statutes, except (A) the authority shall not 1170 convey fee simple ownership in any property associated with the ports 1171 or harbors under its jurisdiction and control without the approval of the 1172 State Properties Review Board and the Attorney General, and (B) as 1173 provided in [subsection (c) of this section] chapter 62; and 1174 Sec. 35. Subsections (b) and (c) of section 15-31b of the general statutes 1175 are repealed and the following is substituted in lieu thereof (Effective July 1176 1, 2023): 1177 (b) The authority shall continue as long as it has bonds or other 1178 obligations outstanding and until its existence is terminated by law, 1179 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 39 of 47 provided no such termination shall affect any outstanding contractual 1180 obligation of the authority and the state shall succeed to the obligations 1181 of the authority under any contract. Upon the termination of the 1182 existence of the authority, all its rights and properties shall pass to and 1183 be vested in the state of Connecticut. 1184 [(c) On and after June 23, 2021, until July 1, 2026, the authority shall 1185 be a state contracting agency for the purposes of chapter 62, except for 1186 the provisions of section 4e-16, and shall be subject to the authority of 1187 the State Contracting Standards Board established under section 4e-2.] 1188 Sec. 36. Subsection (c) of section 10-357b of the general statutes is 1189 repealed and the following is substituted in lieu thereof (Effective July 1, 1190 2023): 1191 (c) The State Education Resource Center shall be subject to (1) rules, 1192 regulations and restrictions on purchasing, procurement, personal 1193 service agreements and the disposition of assets generally applicable to 1194 Connecticut state agencies, including those contained in titles 4, 4a and 1195 4b and [section 4e-19] chapter 62, and (2) audit by the Auditors of Public 1196 Accounts under chapter 12 and section 2-90. 1197 Sec. 37. Section 10a-196 of the general statutes is repealed and the 1198 following is substituted in lieu thereof (Effective July 1, 2023): 1199 Sections 10a-176 to 10a-195, inclusive, shall be deemed to provide a 1200 complete, additional and alternative method for the doing of the things 1201 authorized thereby, and shall be regarded as supplemental and 1202 additional to powers conferred by other laws; provided the issuance of 1203 bonds and refunding bonds under the provisions of this chapter need 1204 not comply with the requirements of any other law applicable to the 1205 issuance of bonds including, particularly, title 42a; and provided in the 1206 construction and acquisition of a project pursuant hereto the authority 1207 need not comply with the requirements of chapter 50. Except as 1208 otherwise expressly provided in this chapter and the provisions of 1209 chapter 62 concerning state contracting agencies, none of the powers 1210 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 40 of 47 granted to the authority under the provisions of this chapter shall be 1211 subject to the supervision or regulation or require the approval or 1212 consent of any municipality or political subdivision or any commission, 1213 board, body, bureau, official or agency thereof or of the state. 1214 Sec. 38. Subsection (s) of section 10a-204b of the general statutes is 1215 repealed and the following is substituted in lieu thereof (Effective July 1, 1216 2023): 1217 (s) The provisions of this section shall be deemed to provide a 1218 complete, additional and alternative method for the actions and the 1219 things authorized thereby and shall be regarded as supplemental and 1220 additional to powers granted by other laws; the issuance of bonds, notes 1221 or other obligations under the provisions of this section need not comply 1222 with the requirements of any law applicable to the issuance of bonds, 1223 notes or other obligations. This section, being necessary for the welfare 1224 of the state and its inhabitants, shall be liberally construed to affect its 1225 purpose. None of the powers granted to the corporation or to any 1226 subsidiary created pursuant to subdivision (5) of section 10a-204 under 1227 the provisions of this section shall be subject to the supervision or 1228 regulation or require the approval or consent of any municipality or 1229 political subdivision or any department, division, commission, board, 1230 body, bureau, official or agency thereof or of the state, and the exercise 1231 thereof shall not cause the corporation or any such subsidiary to be 1232 construed to be an agency within the scope of chapter 54 or a 1233 department, institution or agency of the state, except that the 1234 corporation or any such subsidiary shall comply with the provisions of 1235 chapter 62 concerning state contracting agencies. 1236 Sec. 39. Section 10a-243 of the general statutes is repealed and the 1237 following is substituted in lieu thereof (Effective July 1, 2023): 1238 The provisions of this chapter shall be deemed to provide a complete, 1239 additional and alternative method for the actions of the things 1240 authorized thereby and shall be regarded as supplemental and 1241 additional to powers granted by other laws; the issuance of revenue 1242 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 41 of 47 bonds or notes and revenue refunding bonds or notes under the 1243 provisions of this chapter need not comply with the requirements of any 1244 other law applicable to the issuance of bonds or notes. This chapter, 1245 being necessary for the welfare of the state and its inhabitants, shall be 1246 liberally construed to effect its purpose. Except as otherwise expressly 1247 provided in this chapter or the provisions of chapter 62 concerning state 1248 contracting agencies, none of the powers granted to the authority under 1249 the provisions of this chapter shall be subject to the supervision or 1250 regulation or require the approval or consent of any municipality or 1251 political subdivision or any department, division, commission, board, 1252 body, bureau, official or agency thereof or of the state. The authority 1253 shall not be construed to be an agency within the scope of chapter 54 or 1254 a department, institution or agency of the state. 1255 Sec. 40. Subdivision (16) of subsection (b) of section 12-806 of the 1256 general statutes is repealed and the following is substituted in lieu 1257 thereof (Effective July 1, 2023): 1258 (16) To invest in, acquire, lease, purchase, own, manage, hold and 1259 dispose of real property and lease, convey or deal in or enter into 1260 agreements with respect to such property on any terms necessary or 1261 incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-1262 818, inclusive, and sections 12-853 and 12-854, provided such 1263 transactions shall not be subject to approval, review or regulation 1264 pursuant to title 4b or any other statute by any state agency, except that 1265 real property transactions shall be subject to review by the State 1266 Properties Review Board and contracts shall be subject to the provisions 1267 of chapter 62 concerning state contracting agencies; 1268 Sec. 41. Section 12-815 of the general statutes is repealed and the 1269 following is substituted in lieu thereof (Effective July 1, 2023): 1270 (a) The corporation shall establish and adopt specific policies, rules 1271 and procedures on purchasing and contracting. Such policies, rules and 1272 procedures or amendments thereto shall be approved by a two-thirds 1273 vote of the entire board. Notwithstanding any other provision of law to 1274 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 42 of 47 the contrary, the corporation may enter into management, consulting 1275 and other agreements for the provision of goods, services and 1276 professional advisors necessary or useful in connection with the 1277 operation and management of the lottery (1) pursuant to a process of 1278 open or competitive bidding, provided (A) the corporation shall first 1279 determine the format, content and scope of any agreement for any 1280 procurement of goods or services, the conditions under which bidding 1281 will take place and the schedule and stipulations for contract award, and 1282 (B) the corporation may select the contractor deemed to have submitted 1283 the most favorable bid, considering price and other factors, when, in the 1284 judgment of the corporation, such award is in the best interests of the 1285 corporation, or (2) if the corporation, in its discretion, determines that, 1286 due to the nature of the agreement to be contracted for or procured, 1287 open or public bidding is either impracticable or not in the best interests 1288 of the corporation, by negotiation with such prospective providers as 1289 the corporation may determine. The terms and conditions of agreements 1290 and the fees or other compensation to be paid to such persons shall be 1291 determined by the corporation. The agreements entered into by the 1292 corporation in accordance with the provisions of this section shall not 1293 be subject to the approval of any state department, office or agency, 1294 except as provided in chapter 62 in the provisions concerning state 1295 contracting agencies or regulations adopted by the Department of 1296 Consumer Protection. Nothing in this section shall be deemed to restrict 1297 the discretion of the corporation to utilize its own staff and workforce 1298 for the performance of any of its assigned responsibilities and functions 1299 whenever, in the discretion of the corporation, it becomes necessary, 1300 convenient or desirable to do so. Copies of all agreements of the 1301 corporation shall be maintained by the corporation at its offices as public 1302 records, subject to said exemption. 1303 (b) [The] Except as provided in chapter 62, the corporation shall not 1304 be subject to rules, regulations or restrictions on purchasing or 1305 procurement or the disposition of assets generally applicable to 1306 Connecticut state agencies, including those contained in titles 4a and 4b 1307 and the corresponding rules and regulations. The board shall adopt 1308 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 43 of 47 rules and procedures on purchasing, procurement and the disposition 1309 of assets applicable to the corporation. The adoption of such rules or 1310 procedures shall not be subject to chapter 54. Any such rules or 1311 procedures shall be a public record, as defined in section 1-200. 1312 Sec. 42. Section 22a-268 of the general statutes is repealed and the 1313 following is substituted in lieu thereof (Effective July 1, 2023): 1314 The authority shall utilize private industry, by contract, to carry out 1315 the business, design, operating, management, marketing, planning and 1316 research and development functions of the authority, unless the 1317 authority determines that it is in the public interest to adopt another 1318 course of action. The authority is hereby empowered to enter into long-1319 term contracts with private persons for the performance of any such 1320 functions of the authority which, in the opinion of the authority, can 1321 desirably and conveniently be carried out by a private person under 1322 contract provided any such contract shall contain such terms and 1323 conditions as will enable the authority to retain overall supervision and 1324 control of the business, design, operating, management, transportation, 1325 marketing, planning and research and development functions to be 1326 carried out or to be performed by such private persons pursuant to such 1327 contract. Such contracts shall be entered into either on a competitive 1328 negotiation or competitive bidding basis, and the authority in its 1329 discretion may select the type of contract it deems most prudent to 1330 utilize, pursuant to the contracting procedures adopted under section 1331 22a-268a and considering the scope of work, the management 1332 complexities associated therewith, the extent of current and future 1333 technological development requirements and the best interests of the 1334 state. Whenever a long-term contract is entered into on other than a 1335 competitive bidding basis, the criteria and procedures therefor shall 1336 conform to applicable provisions of subdivision (16) of subsection (a) 1337 and subsections (b) and (c) of section 22a-266, provided however, that 1338 any contract for a period of over five years in duration, or any contract 1339 for which the annual consideration is greater than fifty thousand dollars 1340 shall be approved by a two-thirds vote of the authority's full board of 1341 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 44 of 47 directors. The terms and conditions of such contracts shall be 1342 determined by the authority, as shall the fees or other similar 1343 compensation to be paid to such persons for such contracts. The 1344 contracts entered into by the authority shall not be subject to the 1345 approval of any other state department, office or agency, except as 1346 provided in chapter 62, in the provisions concerning state contracting 1347 agencies. However, copies of all contracts of the authority shall be 1348 maintained by the authority as public records, subject to the proprietary 1349 rights of any party to the contract. Nothing of the aforesaid shall be 1350 deemed to restrict the discretion of the authority to utilize its own staff 1351 and work force for the performance of any of its assigned 1352 responsibilities and functions whenever, in the discretion of the 1353 authority, it becomes necessary, convenient or desirable to do so. Any 1354 litigation with respect to any terms, conditions or provisions of any 1355 contract of the authority, or the performance or nonperformance of same 1356 by either party, shall be tried before a judge of the Superior Court of 1357 Connecticut. 1358 Sec. 43. Subdivision (14) of section 31-49h of the general statutes is 1359 repealed and the following is substituted in lieu thereof (Effective July 1, 1360 2023): 1361 (14) Make and enter into any contract or agreement necessary or 1362 incidental to the performance of its duties and execution of its powers. 1363 [The] Except as provided in chapter 62, the contracts and agreements 1364 entered into by the authority shall not be subject to the approval of any 1365 other state department, office or agency, provided copies of all such 1366 contracts shall be maintained by the authority as public records, subject 1367 to the proprietary rights of any party to such contracts. No contract shall 1368 contain any provision in which any contractor derives any direct or 1369 indirect economic benefit from denying or otherwise influencing the 1370 outcome of any claim for benefits. The standard criteria for the 1371 evaluation of proposals relating to claims processing, web site 1372 development, database development, marketing and advertising, in the 1373 event the authority seeks the services of an outside contractor for such 1374 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 45 of 47 tasks, and for the evaluation of proposals relating to all other contracts 1375 in amounts equal to or exceeding two hundred fifty thousand dollars 1376 shall include, but need not be limited to: (A) Transparency, (B) cost, (C) 1377 efficiency of operations, (D) quality of work related to the contracts 1378 issued, (E) user experience, (F) accountability, and (G) a cost-benefit 1379 analysis documenting the direct and indirect costs of such contracts, 1380 including qualitative and quantitative benefits that will result from the 1381 implementation of such contracts. The establishment of additional 1382 standard criteria shall be approved by a two-thirds vote of the board 1383 after such criteria have been posted on a public Internet web site 1384 maintained by the authority for notice and comment for at least one 1385 week prior to such vote. 1386 Sec. 44. Subdivision (13) of section 38a-1083 of the general statutes is 1387 repealed and the following is substituted in lieu thereof (Effective July 1, 1388 2023): 1389 (13) Make and enter into any contract or agreement necessary or 1390 incidental to the performance of its duties and execution of its powers, 1391 including, but not limited to, an agreement with the Office of Health 1392 Strategy to use funds collected under this section for the operation of 1393 the all-payer claims database established under section 19a-755a and to 1394 receive data from such database. The contracts entered into by the 1395 exchange shall not be subject to the approval of any other state 1396 department, office or agency, provided copies of all contracts of the 1397 exchange shall be maintained by the exchange as public records, subject 1398 to the proprietary rights of any party to the contract, except (A) as 1399 provided in chapter 62, and (B) any agreement with the Office of Health 1400 Strategy shall be subject to approval by said office and the Office of 1401 Policy and Management and no portion of such agreement shall be 1402 considered proprietary; 1403 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 46 of 47 Sec. 2 July 1, 2023 4e-1 Sec. 3 July 1, 2023 4e-2(g) and (h) Sec. 4 July 1, 2023 4e-3(a)(2) Sec. 5 July 1, 2023 4e-4 Sec. 6 July 1, 2023 4e-5(a) to (c) Sec. 7 July 1, 2023 4e-7(a) Sec. 8 July 1, 2023 4e-8 Sec. 9 July 1, 2023 4e-10(a) Sec. 10 July 1, 2023 4e-14 Sec. 11 July 1, 2023 4e-16(c) and (d) Sec. 12 July 1, 2023 4e-16(l)(2) to (4) Sec. 13 July 1, 2023 4e-16(n) Sec. 14 July 1, 2023 4e-16(p) Sec. 15 July 1, 2023 4e-17 Sec. 16 July 1, 2023 4e-18 Sec. 17 July 1, 2023 4e-21(c) Sec. 18 July 1, 2023 4e-24 Sec. 19 July 1, 2023 4b-51(d) Sec. 20 July 1, 2023 4b-57(a) Sec. 21 July 1, 2023 4b-91(g) Sec. 22 July 1, 2023 4e-27 Sec. 23 July 1, 2023 4e-31 Sec. 24 July 1, 2023 4e-34 Sec. 25 July 1, 2023 4e-35 Sec. 26 July 1, 2023 4e-37(g) to (i) Sec. 27 July 1, 2023 4e-38 Sec. 28 July 1, 2023 4e-40(2) Sec. 29 July 1, 2023 4e-45 Sec. 30 July 1, 2023 4e-46 Sec. 31 July 1, 2023 4e-48(a) Sec. 32 July 1, 2023 4e-72 Sec. 33 July 1, 2023 10a-255 Sec. 34 July 1, 2023 15-31b(a)(15) Sec. 35 July 1, 2023 15-31b(b) and (c) Sec. 36 July 1, 2023 10-357b(c) Sec. 37 July 1, 2023 10a-196 Sec. 38 July 1, 2023 10a-204b(s) Sec. 39 July 1, 2023 10a-243 Sec. 40 July 1, 2023 12-806(b)(16) Sec. 41 July 1, 2023 12-815 Substitute Bill No. 1223 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01223- R02-SB.docx } 47 of 47 Sec. 42 July 1, 2023 22a-268 Sec. 43 July 1, 2023 31-49h(14) Sec. 44 July 1, 2023 38a-1083(13) GAE Joint Favorable Subst. APP Joint Favorable