LCO 1 of 42 General Assembly Substitute Bill No. 391 February Session, 2024 AN ACT IMPLEMENTING THE RECOMMENDATIONS OF 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 Section 4e-1 of the 2024 supplement to the general statutes is 12 repealed and the following is substituted in lieu thereof (Effective July 1, 13 2024): 14 For the purposes of this section and sections [4e-1] 4e-2 to 4e-47, 15 inclusive, as amended by this act: 16 (1) "Best value selection" means a contract selection process in which 17 Substitute Bill No. 391 LCO 2 of 42 the award of a contract is based on a combination of quality, timeliness 18 and cost factors; 19 (2) "Bid" means an offer, submitted in response to an invitation to bid, 20 to furnish supplies, materials, equipment, construction or contractual 21 services to a state contracting agency under prescribed conditions at a 22 stated price; 23 (3) "Bidder" means a business submitting a bid in response to an 24 invitation to bid by a state contracting agency; 25 (4) "Business" means any individual or sole proprietorship, 26 partnership, firm, corporation, trust, limited liability company, limited 27 liability partnership, joint stock company, joint venture, association or 28 other legal entity through which business for profit or not-for-profit is 29 conducted; 30 (5) "Competitive bidding" means the submission of prices by a 31 business competing for a contract to provide supplies, materials, 32 equipment or contractual services to a state contracting agency, under a 33 procedure in which the contracting authority does not negotiate prices, 34 as set forth in statutes and regulations concerning procurement; 35 (6) "Consultant" means (A) any architect, professional engineer, 36 landscape architect, land surveyor, accountant, interior designer, 37 environmental professional or construction administrator, who is 38 registered or licensed to practice such person's profession in accordance 39 with the applicable provisions of the general statutes, (B) any planner or 40 any environmental, management or financial specialist, or (C) any 41 person who performs professional work in areas including, but not 42 limited to, educational services, medical services, information 43 technology and real estate appraisal; 44 (7) "Consultant services" means those professional services rendered 45 by a consultant and any incidental services that a consultant and those 46 in the consultant's employ are authorized to perform; 47 Substitute Bill No. 391 LCO 3 of 42 (8) "Contract" [or "state contract"] means an agreement or a 48 combination or series of agreements between a state contracting agency 49 [or quasi-public agency] and a business for: 50 (A) A project for the construction, reconstruction, alteration, 51 remodeling, repair or demolition of any public building, public work, 52 mass transit, rail station, parking garage, rail track or airport; 53 (B) Services, including, but not limited to, consultant and professional 54 services; 55 (C) The acquisition or disposition of personal property; 56 (D) The provision of goods and services, including, but not limited 57 to, the use of purchase of services contracts and personal service 58 agreements; 59 (E) The provision of information technology, state contracting agency 60 information system or telecommunication system facilities, equipment 61 or services; 62 (F) A lease; or 63 (G) A licensing agreement; 64 "Contract" [or "state contract"] does not include a contract between a 65 state contracting agency [or a quasi-public agency] and a political 66 subdivision of the state; 67 [(9) "Term contract" means the agreement reached when the state 68 accepts a bid or proposal to furnish supplies, materials, equipment or 69 contractual services at a stated price for a specific period of time in 70 response to an invitation to bid;] 71 [(10)] (9) "Contract risk assessment" means (A) the identification and 72 evaluation of loss exposures and risks, including, but not limited to, 73 business and legal risks associated with the contracting process and the 74 contracted goods and services, and (B) the identification, evaluation and 75 Substitute Bill No. 391 LCO 4 of 42 implementation of measures available to minimize potential loss 76 exposures and risks; 77 [(11)] (10) "Contractor" means any business that is awarded, or is a 78 subcontractor under, a contract or an amendment to a contract with a 79 state contracting agency under statutes and regulations concerning 80 procurement, including, but not limited to, a small contractor, minority 81 business enterprise, an individual with a disability, as defined in section 82 4a-60, or an organization providing products and services by persons 83 with disabilities; 84 [(12)] (11) "Contractual services" means the furnishing of labor by a 85 contractor, not involving the delivery of a specific end product other 86 than reports, which are merely incidental to the required performance 87 and includes any and all laundry and cleaning service, pest control 88 service, janitorial service, security service, the rental and repair, or 89 maintenance, of equipment, machinery and other [state-owned] 90 personal property owned by a state contracting agency, advertising and 91 photostating, mimeographing, human services and other service 92 arrangements where the services are provided by persons other than 93 state employees or quasi-public agency employees. "Contractual 94 services" includes the design, development and implementation of 95 technology, communications or telecommunications systems or the 96 infrastructure pertaining thereto, including hardware and software and 97 services for which a contractor is conferred a benefit by the state, 98 whether or not compensated by the state. "Contractual services" does 99 not include employment agreements or collective bargaining 100 agreements; 101 [(13)] (12) "Data" means recorded information, regardless of form or 102 characteristic; 103 [(14)] (13) "Vote of two-thirds of the members of the board present 104 and voting" means a vote by the State Contracting Standards Board that 105 is agreed upon by two-thirds of the members of the State Contracting 106 Standards Board present and voting for a particular purpose and that 107 Substitute Bill No. 391 LCO 5 of 42 includes the vote of one member of the board appointed by a legislative 108 leader; 109 [(15)] (14) "Electronic" means electrical, digital, magnetic, optical, 110 electromagnetic, or any other similar technology; 111 [(16)] (15) "Emergency procurement" means procurement by a state 112 contracting agency, [quasi-public agency, as defined in section 1-120,] 113 judicial department or constituent unit of higher education that is made 114 necessary by a sudden, unexpected occurrence that poses a clear and 115 imminent danger to public safety or requires immediate action to 116 prevent or mitigate the loss or impairment of life, health, property or 117 essential public services or in response to a court order, settlement 118 agreement or other similar legal judgment; 119 [(17)] (16) "Equipment" means personal property of a durable nature 120 that retains its identity throughout its useful life; 121 [(18)] (17) "Materials" means items required to perform a function or 122 used in a manufacturing process, particularly those incorporated into 123 an end product or consumed in its manufacture; 124 [(19)] (18) "Nonprofit agency" means any organization that is not a 125 for-profit business under Section 501(c)(3) of the Internal Revenue Code 126 of 1986, or any subsequent corresponding internal revenue code of the 127 United States, as amended from time to time, [amended,] makes no 128 distribution to its members, directors or officers and provides services 129 contracted for by (A) the state or a quasi-public agency, or (B) a nonstate 130 entity; 131 [(20)] (19) "Professional services" means any type of service to the 132 public that requires that members of a profession rendering such service 133 obtain a license or other legal authorization as a condition precedent to 134 the rendition thereof, including, but not limited to, the professional 135 services of architects, professional engineers, or jointly by architects and 136 professional engineers, landscape architects, certified public 137 accountants and public accountants, land surveyors, attorneys-at-law, 138 Substitute Bill No. 391 LCO 6 of 42 psychologists, licensed marital and family therapists, licensed 139 professional counselors and licensed clinical social workers as well as 140 such other professional services described in section 33-182a; 141 [(21)] (20) "Privatization contract" means an agreement or series of 142 agreements between a state contracting agency and a person or entity in 143 which such person or entity agrees to provide services that are 144 substantially similar to and in lieu of services provided, in whole or in 145 part, by state employees or quasi-public agency employees, other than 146 contracts with a nonprofit agency, which are in effect as of January 1, 147 2009, and which through a renewal, modification, extension or 148 rebidding of contracts continue to be provided by a nonprofit agency; 149 [(22)] (21) "Procurement" means contracting for, buying, purchasing, 150 renting, leasing or otherwise acquiring or disposing of, any supplies, 151 services, including but not limited to, contracts for purchase of services 152 and personal service agreements, interest in real property, or 153 construction, and includes all government functions that relate to such 154 activities, including best value selection and qualification based 155 selection; 156 [(23)] (22) "Proposer" means a business submitting a proposal to a 157 state contracting agency in response to a request for proposals or other 158 competitive sealed proposal; 159 [(24)] (23) "Public record" means a public record, as defined in section 160 1-200; 161 [(25)] (24) "Qualification based selection" means a contract selection 162 process in which the award of a contract is primarily based on an 163 assessment of contractor qualifications and on the negotiation of a fair 164 and reasonable price; 165 [(26)] (25) "Regulation" means regulation, as defined in section 4-166; 166 [(27)] (26) "Request for proposals" means all documents, whether 167 attached or incorporated by reference, utilized for soliciting proposals; 168 Substitute Bill No. 391 LCO 7 of 42 [(28)] (27) "State contracting agency" means any executive branch 169 agency, board, commission, department, office, institution or council or 170 quasi-public agency. "State contracting agency" does not include the 171 judicial branch, the legislative branch, the offices of the Secretary of the 172 State, the State Comptroller, the Attorney General, the State Treasurer, 173 with respect to their constitutional functions [,] or any state agency with 174 respect to contracts specific to the constitutional and statutory functions 175 of the office of the State Treasurer. For [the purposes of every provision 176 of this chapter other than section 4e-16, "state contracting agency" 177 includes the Connecticut Port Authority, for] the purposes of section 4e-178 16, as amended by this act, "state contracting agency" includes any 179 constituent unit of the state system of higher education; [and for the 180 purposes of section 4e-19, "state contracting agency" includes the State 181 Education Resource Center, established under section 10-4q;] 182 [(29)] (28) "Subcontractor" means a subcontractor of a contractor for 183 work under a contract or an amendment to a contract; 184 [(30)] (29) "Supplies" means any and all articles of personal property, 185 including, but not limited to, equipment, materials, printing, insurance 186 and leases of real property, excluding land or a permanent interest in 187 land furnished to or used by any state contracting agency; 188 [(31)] (30) "Infrastructure facility" means a building, structure or 189 network of buildings, structures, pipes, controls and equipment that 190 provide transportation, utilities, public education or public safety 191 services. [Infrastructure facility] "Infrastructure facility" includes 192 government office buildings, public schools, jails, water treatment 193 plants, distribution systems and pumping stations, wastewater 194 treatment plants, collections systems and pumping stations, solid waste 195 disposal plants, incinerators, landfills, and related facilities, public roads 196 and streets, highways, public parking facilities, public transportation 197 systems, terminals and rolling stock, rail, air and water port structures, 198 terminals and equipment; [and] 199 [(32)] (31) "State employee" [means state employee, as defined] has 200 Substitute Bill No. 391 LCO 8 of 42 the same meaning as provided in section 5-154 and, for purposes of 201 section 4e-16, as amended by this act, [state employee] includes an 202 employee of any state contracting agency that is not a quasi-public 203 agency; and 204 (32) "Quasi-public agency" has the same meaning as provided in 205 section 1-120. 206 Sec. 3. Subsections (g) and (h) of section 4e-2 of the 2024 supplement 207 to the general statutes are repealed and the following is substituted in 208 lieu thereof (Effective July 1, 2024): 209 (g) The board shall appoint a Chief Procurement Officer for a term 210 not to exceed six years, unless reappointed pursuant to the provisions 211 of this subsection. The Chief Procurement Officer shall report to the 212 board and annually be evaluated by, and serve at the pleasure of, the 213 board. For administrative purposes only, the Chief Procurement Officer 214 shall be supervised by the executive director. 215 (1) The Chief Procurement Officer shall be responsible for carrying 216 out the policies of the board relating to procurement including, but not 217 limited to, oversight, investigation, auditing, agency procurement 218 certification and procurement and project management training and 219 enforcement of [said] such policies as well as the application of such 220 policies to the screening and evaluation of current and prospective 221 contractors. The Chief Procurement Officer may enter into such 222 contractual agreements as may be necessary for the discharge of the 223 duties as set forth in this subsection and by the board, including, but not 224 limited to, recommending best practices and providing operational and 225 administrative assistance to state agencies determined, by the board, to 226 be in violation of sections 4e-16 to 4e-47, inclusive, as amended by this 227 act. 228 (2) In addition to the duties set forth by the board, the Chief 229 Procurement Officer shall (A) oversee state contracting agency 230 compliance with the provisions of statutes and regulations concerning 231 procurement; (B) monitor and assess the performance of the 232 Substitute Bill No. 391 LCO 9 of 42 procurement duties of each agency procurement officer; (C) administer 233 the certification system and monitor the level of agency compliance with 234 the requirements of statutes and regulations concerning procurement, 235 including, but not limited to, the education and training, performance 236 and qualifications of agency procurement officers; (D) review and 237 monitor the procurement processes of each state contracting agency [, 238 quasi-public agencies] and institutions of higher education; and (E) 239 serve as chairperson of the Contracting Standards Advisory Council. 240 (h) The board may contract with consultants and professionals on a 241 temporary or project by project basis and [may] shall employ, subject to 242 the provisions of chapter 67, [such] not less than five full-time 243 employees and may employ additional employees as may be necessary 244 to carry out the provisions of this section. 245 Sec. 4. Subdivision (2) of subsection (a) of section 4e-3 of the general 246 statutes is repealed and the following is substituted in lieu thereof 247 (Effective July 1, 2024): 248 (2) Any state contracting agency's contracting and procurement 249 processes, including, but not limited to, leasing and property transfers, 250 purchasing or leasing of supplies, materials or equipment, consultant or 251 consultant services, purchase of service agreements or privatization 252 contracts; and 253 Sec. 5. Section 4e-4 of the general statutes is repealed and the 254 following is substituted in lieu thereof (Effective July 1, 2024): 255 Except as otherwise provided in the general statutes, the board shall 256 have the following authority and responsibilities with respect to 257 procurements by state contracting agencies: 258 [(a) Recommend] (1) To recommend the repeal of repetitive, 259 conflicting or obsolete statutes concerning [state] procurement; 260 [(b) Review] (2) To review and make recommendations concerning 261 proposed legislation and regulations concerning procurement, 262 Substitute Bill No. 391 LCO 10 of 42 management, control, and disposal of any and all supplies, services, and 263 construction to be procured by [the] state contracting agencies, 264 including, but not limited to: 265 [(1)] (A) Conditions and procedures for delegation of procurement 266 authority; 267 [(2)] (B) Prequalification, suspension, debarment and reinstatement 268 of prospective bidders and contractors; 269 [(3)] (C) Small purchase procedures; 270 [(4)] (D) Conditions and procedures for the procurement of 271 perishables and items for resale; 272 [(5)] (E) Conditions and procedures for the use of source selection 273 methods authorized by statutes and regulations concerning 274 procurement; 275 [(6)] (F) Conditions and procedures for the use of emergency 276 procurements; 277 [(7)] (G) Conditions and procedures for the selection of contractors by 278 processes or methods that restrict full and open competition; 279 [(8)] (H) The opening or rejection of bids and offers, and waiver of 280 errors in bids and offers; 281 [(9)] (I) Confidentiality of technical data and trade secrets submitted 282 by actual or prospective bidders; 283 [(10)] (J) Partial, progressive and multiple awards; 284 [(11)] (K) Supervision of storerooms and inventories, including 285 determination of appropriate stock levels and the management, 286 transfer, sale or other disposal of publicly-owned supplies; 287 [(12)] (L) Definitions and classes of contractual services and 288 procedures for acquiring such services; 289 Substitute Bill No. 391 LCO 11 of 42 [(13)] (M) Regulations providing for conducting cost and price 290 analysis; 291 [(14)] (N) Use of payment and performance bonds; 292 [(15)] (O) Guidelines for use of cost principles in negotiations, 293 adjustments and settlements; and 294 [(16)] (P) Identification of procurement best practices; 295 [(c) Adopt] (3) To adopt regulations, pursuant to the provisions of 296 chapter 54, to carry out the provisions of statutes concerning 297 procurement, in order to facilitate consistent application of the law and 298 require the implementation of procurement best practices; 299 [(d) Make] (4) To make recommendations with regard to information 300 systems for state contracting agency procurement including, but not 301 limited to, data element and design and the State Contracting Portal; 302 [(e) Develop] (5) To develop a guide [to] of state statutes and 303 regulations concerning procurement, for use by all state contracting 304 agencies; 305 [(f) Assist] (6) To assist state contracting agencies in complying with 306 the statutes and regulations concerning procurement by providing 307 guidance, models, advice and practical assistance to state contracting 308 agency staff relating to: [(1)] (A) Buying the best service at the best price, 309 [(2)] (B) properly selecting contractors, and [(3)] (C) drafting contracts 310 that achieve state goals of accountability, transparency and results 311 based outcomes and to protect taxpayers' interest; 312 [(g) Train] (7) To train and oversee the agency procurement officer of 313 each state contracting agency and any contracting officers thereunder; 314 [(h) Review] (8) To review and certify, on or after January 1, 2009, that 315 a state contracting agency's procurement processes are in compliance 316 with statutes and regulations concerning procurement by: 317 Substitute Bill No. 391 LCO 12 of 42 [(1)] (A) Establishing procurement and project management 318 education and training criteria and certification procedures for agency 319 procurement officers and contracting officers. All agency procurement 320 officers and contracting officers designated under this provision shall be 321 required to maintain the certification in good standing at all times while 322 performing procurement functions; 323 [(2)] (B) Approving an ethics training course, in consultation with the 324 Office of State Ethics, including, but not limited to, state employees and 325 quasi-public agency employees involved in procurement and for state 326 contractors and substantial subcontractors who are prequalified 327 pursuant to chapter 58a. Such ethics training course may be developed 328 and provided by the Office of State Ethics or by any person, firm or 329 corporation provided such course is approved by the State Contracting 330 Standards Board; 331 [(i) Recertify] (9) To recertify each state contracting agency's 332 procurement processes, triennially, and provide agencies with notice of 333 any certification deficiency and exercise those powers authorized by 334 section 4e-34, as amended by this act, 4e-39 or 4e-40, as amended by this 335 act, as applicable, if a determination of noncompliance is made; 336 [(j) Define] (10) To define the contract data reporting requirements to 337 the board for state contracting agencies concerning information on: [(1)] 338 (A) The number and type of [state] contracts of each state contracting 339 agency currently in effect state-wide; [(2)] (B) the term and dollar value 340 of such contracts; [(3)] (C) a list of client agencies; [(4)] (D) a description 341 of services purchased under such contracts; [(5)] (E) contractor names; 342 [(6)] (F) an evaluation of contractor performance, including, but not 343 limited to records pertaining to the suspension or disqualification of 344 contractors, and assuring such information is available on the State 345 Contracting Portal; and [(7)] (G) a list of contracts and contractors 346 awarded without full and open competition stating the reasons [for] 347 therefor and identifying the approving authority; and 348 [(k) Provide] (11) To provide the Governor and the joint standing 349 Substitute Bill No. 391 LCO 13 of 42 committee of the General Assembly having cognizance of matters 350 relating to government administration with recommendations 351 concerning the statutes and regulations concerning procurement. 352 Sec. 6. Subsections (a) to (c), inclusive, of section 4e-5 of the general 353 statutes are repealed and the following is substituted in lieu thereof 354 (Effective July 1, 2024): 355 (a) (1) The head of each state contracting agency shall appoint an 356 agency procurement officer. Such officer shall serve as the liaison 357 between the agency and the Chief Procurement Officer on all matters 358 relating to the agency's procurement activity, including, but not limited 359 to, implementation and compliance with the provisions of statutes and 360 regulations concerning procurement and any policies or regulations 361 adopted by the board, coordination of the training and education of 362 agency procurement employees and any person serving on the 363 Contracting Standards Advisory Council; 364 (2) The agency procurement officer shall be responsible for [assuring] 365 (A) ensuring that any invitation to bid, request for proposals or any 366 other solicitation for goods and services issued on or after July 1, 2024, 367 contains a notice of the rights of prospective bidders, proposers or 368 prospective contractors under section 4e-36, (B) ensuring that 369 contractors are properly screened prior to the award of a contract, (C) 370 ensuring that contractors are advised of their rights under section 4e-36, 371 prior to entering into a contract on or after July 1, 2024, (D) ensuring 372 that, upon the award of such a contract, unsuccessful bidders, proposers 373 or respondents are advised of their rights under section 4e-36, (E) 374 evaluating contractor performance during and at the conclusion of a 375 contract, (F) submitting written evaluations to a central data repository 376 to be designated by the board, and (G) creating a project management 377 plan for the agency with annual reports to the board pertaining to 378 procurement projects within the agency. 379 (b) The State Contracting Standards Board, with the advice and 380 assistance of the Commissioner of Administrative Services, shall 381 Substitute Bill No. 391 LCO 14 of 42 develop a standardized state procurement and project management 382 education and training program. Such education and training program 383 shall develop education, training and professional development 384 opportunities for employees of state contracting agencies charged with 385 procurement responsibilities. The education and training program shall 386 educate such employees in general business acumen and on proper 387 purchasing procedures as established in statutes and regulations 388 concerning procurement with an emphasis on ethics, fairness, 389 consistency and project management. Participation in the education and 390 training program shall be required of any supervisory and 391 nonsupervisory [state] employees in state contracting agencies with 392 responsibility for buying, purchasing, renting, leasing or otherwise 393 acquiring any supplies, service or construction, including the 394 preparation of the description of requirements, selection and solicitation 395 of sources, preparation and award of contracts and all phases of contract 396 administration. 397 (c) The education and training program shall include, but shall not be 398 limited to, (1) training and education concerning federal, state and 399 municipal procurement processes, including the statutes and 400 regulations concerning procurement; (2) training and education courses 401 developed in cooperation with the Office of State Ethics, the Freedom of 402 Information Commission, the State Elections Enforcement Commission, 403 the 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 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 Substitute Bill No. 391 LCO 15 of 42 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, 2024): 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 Sec. 8. Section 4e-8 of the general statutes is repealed and the 446 following is substituted in lieu thereof (Effective July 1, 2024): 447 Substitute Bill No. 391 LCO 16 of 42 There is established a Contracting Standards Advisory Council, 448 which shall consist of representatives from the Office of Policy and 449 Management, Departments of Administrative Services and 450 Transportation, [and] representatives of at least three additional state 451 contracting agencies that are not quasi-public agencies, including at 452 least one human services related state agency, to be designated by the 453 Governor, and at least four additional state contracting agencies that are 454 quasi-public agencies, two to be appointed by the speaker of the House 455 of Representatives and two to be appointed by the president pro 456 tempore of the Senate. The Chief Procurement Officer shall be a member 457 of the council and serve as chairperson. The advisory council shall meet 458 at least four times per year to discuss [state] procurement issues and to 459 make recommendations for improvement of the procurement processes 460 to the State Contracting Standards Board. The advisory council may 461 conduct studies, research and analyses and make reports and 462 recommendations with respect to subjects or matters within the 463 jurisdiction of the State Contracting 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 2024): 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, 2024): 475 On and after June 1, 2010, all [state] contracts of each state contracting 476 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 Substitute Bill No. 391 LCO 17 of 42 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, 2024, all contracts of each state 484 contracting agency that is a quasi-public agency that take effect on or 485 after July 1, 2024, 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, 2024): 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 layoff, transfer or reassignment of [one hundred] twenty-five or more 509 state contracting agency employees, after consulting with the 510 potentially affected bargaining units, if any, the state contracting agency 511 Substitute Bill No. 391 LCO 18 of 42 shall notify the state employees or quasi-public agency employees of 512 such 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) an analysis of the 538 qualitative impact of the proposed privatization contract on the existing 539 state workforce, (9) a description of the current market for the services 540 or activities that are the subject of such business case, [(8)] (10) an 541 analysis of the quality of services as gauged by standardized measures 542 and key performance requirements including compensation, turnover, 543 and staffing ratios, [(9)] (11) a description of the specific results-based 544 performance standards that shall, at a minimum be met, to ensure 545 Substitute Bill No. 391 LCO 19 of 42 adequate performance by any party performing such service or activity, 546 [(10)] (12) the projected time frame for key events from the beginning of 547 the procurement process through the expiration of a contract, if 548 applicable, [(11)] (13) a specific and feasible contingency plan that 549 addresses contractor nonperformance and a description of the tasks 550 involved in and costs required for implementation of such plan, and 551 [(12)] (14) a transition plan, if appropriate, for addressing changes in the 552 number of agency personnel, affected business processes, employee 553 transition issues, and communications with affected stakeholders, such 554 as agency clients and members of the public, if applicable. Such 555 transition plan shall contain a reemployment and retraining assistance 556 plan for employees who are not retained by the state or quasi-public 557 agency or employed by the contractor. If the primary purpose of the 558 proposed privatization contract is to provide a core governmental 559 function, such business case shall also include information sufficient to 560 rebut the presumption that such core governmental function should not 561 be privatized. Such presumption shall not be construed to prohibit a 562 state contracting agency from contracting for specialized technical 563 expertise not available within such agency, provided such agency shall 564 retain responsibility for such core governmental function. For the 565 purposes of this section, "core governmental function" means a function 566 for which the primary purpose is (A) the inspection for adherence to 567 health and safety standards because public health or safety may be 568 jeopardized if such inspection is not done or is not done in a timely or 569 proper manner, (B) the establishment of statutory, regulatory or 570 contractual standards to which a regulated person, entity or state 571 contractor shall be held, (C) the enforcement of statutory, regulatory or 572 contractual requirements governing public health or safety, [or] (D) 573 criminal or civil law enforcement, or (E) the provision of essential 574 human services to residents of the state who would otherwise lack the 575 support necessary to assure basic human needs. If any part of such 576 business case is based upon evidence that the state contracting agency 577 is not sufficiently staffed to provide the core governmental function 578 required by the privatization contract, the state contracting agency shall 579 also include within such business case a plan for remediation of the 580 Substitute Bill No. 391 LCO 20 of 42 understaffing to allow such services to be provided directly by the state 581 contracting agency in the future. 582 Sec. 12. Subdivisions (2) to (4), inclusive, of subsection (l) of section 583 4e-16 of the general statutes are repealed and the following is 584 substituted in lieu thereof (Effective July 1, 2024): 585 (2) If such cost-benefit analysis identifies a ten per cent or more cost 586 savings to the state contracting agency from the use of such 587 privatization contract and such contract does not diminish the quality 588 of the service provided, such state contracting agency shall develop a 589 business case for the renewal of such privatization contract in 590 accordance with the provisions of subsections (d) and (e) of this section. 591 The board shall review such contract in accordance with the provisions 592 of subsections (f) to (h), inclusive, of this section and may approve such 593 renewal by the applicable vote of the board, provided any such renewal 594 that is estimated to cost in excess of one hundred fifty million dollars 595 annually or six hundred million dollars or more over the life of the 596 contract shall also be approved by the General Assembly prior to the 597 state contracting agency renewing such contract. If such renewal is 598 approved by the board and the General Assembly, if applicable, the 599 provisions of subsection (j) of this section shall apply to any proposed 600 amendment to such contract. 601 (3) If such cost-benefit analysis identifies a cost savings to the state 602 contracting agency of less than ten per cent, such state contracting 603 agency shall prepare a plan to have such service provided by state 604 employees, or, in the case of a state contracting agency that is a quasi-605 public agency, by the employees of the quasi-public agency, and shall 606 begin to implement such plan, provided: (A) While such plan is 607 prepared, but prior to implementation of such plan, such state 608 contracting agency may develop a business case for such privatization 609 contract, in accordance with the provisions of subsection (d) of this 610 section, that achieves a cost savings to the state of ten per cent or more. 611 Any such business case shall be reviewed by the board in accordance 612 with the provisions of subsections (f) to (h), inclusive, of this section, and 613 Substitute Bill No. 391 LCO 21 of 42 may be approved by the applicable vote of the board; (B) such 614 privatization contract shall not be renewed with the vendor currently 615 providing such service unless: (i) There exists a significant public 616 interest in renewing such contract, and (ii) such renewal is approved by 617 a two-thirds vote of the board; (C) the state contracting agency may 618 enter into a contract with a term of one year or less for the provision of 619 such service until such state contracting agency implements such plan; 620 and (D) the procedure for the transfer of funds from the General Fund, 621 as described in section 4-94, may be utilized to allocate necessary 622 resources for the implementation of the provisions of this subdivision. 623 (4) Notwithstanding the provisions of subdivision (3) of this 624 subsection, the renewal of a privatization contract with a nonprofit 625 organization shall not be denied if the cost of increasing compensation 626 to employees performing the privatized service is the sole cause for such 627 contract not achieving a cost savings to the state contracting agency of 628 ten per cent or more. 629 Sec. 13. Subsection (n) of section 4e-16 of the general statutes is 630 repealed and the following is substituted in lieu thereof (Effective July 1, 631 2024): 632 (n) The State Contracting Standards Board, in consultation with the 633 Department of Administrative Services, shall: (1) Recommend and 634 implement standards and procedures for state contracting agencies to 635 develop business cases in connection with privatization contracts, 636 including templates for use by state contracting agencies when 637 submitting business cases to the board, and policies and procedures to 638 guide state contracting agencies to complete such business cases, and (2) 639 develop guidelines and procedures for assisting state employees or 640 quasi-public agency employees whose jobs are affected by a 641 privatization contract. 642 Sec. 14. Subsection (p) of section 4e-16 of the general statutes is 643 repealed and the following is substituted in lieu thereof (Effective July 1, 644 2024): 645 Substitute Bill No. 391 LCO 22 of 42 (p) Prior to entering into or renewing any privatization contract that 646 is not subject to the provisions of subsection (a) of this section, the state 647 contracting agency shall evaluate such contract to determine if entering 648 into or renewing such contract is the most cost-effective method of 649 delivering the service, by determining the costs, as defined in subsection 650 (b) of this section, of such service. The state contracting agency shall 651 perform such evaluation in accordance with a template prescribed by 652 the Secretary of the Office of Policy and Management, in consultation 653 with the board, pursuant to subsection (m) of this section, and such 654 evaluation shall be [subject to verification by the secretary] submitted to 655 the board. The secretary may, in consultation with the Chief 656 Procurement Officer of the board, waive the requirement for an 657 evaluation of cost-effectiveness under this subsection upon a finding by 658 the secretary that exigent or emergent circumstances necessitate such 659 waiver. 660 Sec. 15. Section 4e-17 of the general statutes is repealed and the 661 following is substituted in lieu thereof (Effective July 1, 2024): 662 (a) Except as otherwise provided, the provisions of sections 4e-16 to 663 4e-47, inclusive, as amended by this act, shall apply to all contracts 664 solicited or entered into by [state contracting agencies] a state 665 contracting agency that is a state agency after June 1, 2010, and all 666 contracts solicited or entered into by a state contracting agency that is a 667 quasi-public agency on or after July 1, 2024. 668 (b) Except as otherwise provided, the provisions of sections 4e-16 to 669 4e-47, inclusive, as amended by this act, shall apply to every 670 expenditure of public funds by any state contracting agency, 671 irrespective of their source, involving any state contracting agency 672 contracting and procurement processes, including, but not limited to, 673 leasing and property transfers, purchasing or leasing of supplies, 674 materials or equipment, consultant or consultant services, personal 675 service agreements, purchase of service agreements or privatization 676 contracts, as defined in section 4e-1, as amended by this act, and, 677 relating to contracts for the construction, reconstruction, alteration, 678 Substitute Bill No. 391 LCO 23 of 42 remodeling, repair or demolition of any public building, bridge or road. 679 (c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this 680 act, shall be construed to require the application of procurement statutes 681 or regulations to a procurement that involves the expenditure of federal 682 assistance or federal contract funds if federal law provides procurement 683 procedures applicable to the expenditure of such funds, to the extent 684 such federal procedures are inconsistent with state procurement 685 statutes or regulations. 686 Sec. 16. Section 4e-18 of the general statutes is repealed and the 687 following is substituted in lieu thereof (Effective July 1, 2024): 688 For the purpose of obtaining supplies, materials, equipment or 689 contractual services, except infrastructure facilities, the Commissioner 690 of Administrative Services shall establish a requisition system to be used 691 by state contracting agencies that are not quasi-public agencies to 692 initiate and authorize the procurement process. Such system shall be 693 approved by the State Contracting Standards Board. 694 Sec. 17. Subsection (c) of section 4e-21 of the general statutes is 695 repealed and the following is substituted in lieu thereof (Effective July 1, 696 2024): 697 (c) The State Contracting Standards Board, in consultation with the 698 Commissioner of Administrative Services, may waive the requirement 699 of competitive bidding or competitive negotiation in the case of minor, 700 nonrecurring or emergency purchases of ten thousand dollars or less in 701 amount, upon application of the state contracting agency. Any state 702 contracting agency that obtains such a waiver for such an emergency 703 purchase shall post notice of such emergency purchase on the Internet 704 web site of the state contracting agency prior to making such emergency 705 purchase. 706 Sec. 18. Section 4e-24 of the general statutes is repealed and the 707 following is substituted in lieu thereof (Effective July 1, 2024): 708 Substitute Bill No. 391 LCO 24 of 42 (a) [Not later than June 1, 2010, the State Contracting Standards 709 Board, in consultation with the Commissioner of Administrative 710 Services and any other appropriate award authority, shall adopt 711 regulations, in accordance with the provisions of chapter 54, permitting] 712 If an emergency [procurements when there exists] procurement is 713 deemed necessary by a state contracting agency due to a threat to public 714 health, welfare or safety, the state contracting agency shall give notice 715 to the board of the need for such emergency procurement. Such 716 emergency [procurements] procurement shall be made with 717 competition, as is practicable under the circumstances. [Said regulations 718 shall require that] The state contracting agency shall (1) include a 719 written determination of the basis for the emergency and for the 720 selection of the particular contractor [be included] in the contract file 721 and [transmitted] transmit such determination to the Governor, the 722 president pro tempore of the Senate, the majority and minority leaders 723 of the Senate, the speaker of the House of Representatives and the 724 majority and minority leaders of the House of Representatives, and (2) 725 post such determination on the Internet web site of the state contracting 726 agency. 727 (b) The State Contracting Standards Board may adopt regulations in 728 accordance with the provisions of chapter 54 to implement the 729 provisions of this section. 730 Sec. 19. Section 4e-27 of the general statutes is repealed and the 731 following is substituted in lieu thereof (Effective July 1, 2024): 732 Not later than June 1, 2010, the State Contracting Standards Board, in 733 consultation with the Attorney General, shall adopt regulations, in 734 accordance with the provisions of chapter 54, specifying the types of 735 contracts that may be used by state contracting agencies. Such 736 regulations shall specify that a cost-reimbursement contract may be 737 used only when a determination is made in writing by the agency 738 procurement officer that such contract is likely to be less costly to the 739 state contracting agency than any other type or that it is impracticable 740 to obtain the supplies, services or construction required except under 741 Substitute Bill No. 391 LCO 25 of 42 such a contract. 742 Sec. 20. Section 4e-31 of the general statutes is repealed and the 743 following is substituted in lieu thereof (Effective July 1, 2024): 744 When, for any reason, collusion or other anticompetitive practices are 745 suspected among any bidders or proposers for [a state] the contract of a 746 state contracting agency, a notice of the relevant facts shall be 747 transmitted to the Attorney General by any affected party, including, 748 but not limited to, the state contracting agency, a bidder or a proposer. 749 Sec. 21. Section 4e-34 of the general statutes is repealed and the 750 following is substituted in lieu thereof (Effective July 1, 2024): 751 (a) After reasonable notice and hearing and consultation with the 752 relevant state contracting agency and the Attorney General, the State 753 Contracting Standards Board, acting through a subcommittee of three 754 members, appointed by the chairperson, which subcommittee shall 755 include not less than one legislative appointee, may disqualify any 756 contractor, bidder or proposer, for a period of not more than five years, 757 from bidding on, applying for or participating as a contractor or 758 subcontractor under, contracts with [the] state or quasi-public agencies. 759 Such disqualification shall be upon the vote of two-thirds of the 760 members of the subcommittee present and voting for that purpose. Such 761 hearing shall be conducted in accordance with the provisions of chapter 762 54. The subcommittee shall issue a written recommendation not later 763 than sixty days after the conclusion of such hearing, and shall state the 764 reason for the recommended action and, if the disqualification is 765 recommended, the period of time the contractor, bidder or proposer 766 shall be disqualified. In determining whether to disqualify a contractor, 767 bidder or proposer, the subcommittee shall consider the seriousness of 768 the acts or omissions of the contractor, bidder or proposer and any 769 mitigating factors. Such recommendation shall be submitted to the 770 board for action and sent to the contractor by certified mail, return 771 receipt requested. If disqualification is recommended, the contractor 772 shall have thirty days to submit comments to the board. Upon receipt of 773 Substitute Bill No. 391 LCO 26 of 42 the proposed recommendation by the subcommittee, the board shall 774 issue a written decision either adopting, rejecting or modifying the 775 subcommittee's recommendation. Such decision shall be issued not later 776 than thirty days after receipt by the board of the contractor's comments, 777 if any. The board shall send the decision to the contractor by certified 778 mail, return receipt requested. The written decision shall be a final 779 decision for purposes of sections 4-180 and 4-183. 780 (b) Causes for such disqualification shall include the following: 781 (1) Conviction of, or entry of a plea of guilty or nolo contendere or 782 admission to, the commission of a criminal offense as an incident to 783 obtaining or attempting to obtain a public or private contract or 784 subcontract, or in the performance of such contract or subcontract; 785 (2) Conviction of, or entry of a plea of guilty or nolo contendere or 786 admission to, the violation of any state or federal law for embezzlement, 787 theft, forgery, bribery, falsification or destruction of records, receiving 788 stolen property or any other offense indicating a lack of business 789 integrity or business honesty which affects responsibility as a [state] 790 contractor; 791 (3) Conviction of, or entry of a plea of guilty or nolo contendere or 792 admission to, a violation of any state or federal antitrust, collusion or 793 conspiracy law arising out of the submission of bids or proposals on a 794 public or private contract or subcontract; 795 (4) Accumulation of two or more suspensions pursuant to section 4e-796 35, as amended by this act, within a twenty-four-month period; 797 (5) A wilful, negligent or reckless failure to perform in accordance 798 with the terms of one or more contracts or subcontracts, agreements or 799 transactions with state contracting agencies; 800 (6) A history of failure to perform or of unsatisfactory performance 801 on one or more public contracts, agreements or transactions with state 802 contracting agencies; 803 Substitute Bill No. 391 LCO 27 of 42 (7) A wilful violation of a statutory or regulatory provision or 804 requirement applicable to a contract, agreement or transaction with 805 state contracting agencies; 806 (8) A wilful or egregious violation of the ethical standards set forth in 807 sections 1-84, 1-86e and 1-101nn, as determined by the Citizen's Ethics 808 Advisory Board; or 809 (9) Any other cause or conduct the board determines to be so serious 810 and compelling as to affect responsibility as a [state] contractor, 811 including, but not limited to: 812 (A) Disqualification by another state for cause; 813 (B) The fraudulent or criminal conduct of any officer, director, 814 shareholder, partner, employee or other individual associated with a 815 contractor, bidder or proposer of such contractor, bidder or proposer; [, 816 provided such conduct occurred in connection with the individual's 817 performance of duties for or on behalf of such contractor, bidder or 818 proposer and such contractor, bidder or proposer knew or had reason 819 to know of such conduct;] 820 (C) The existence of an informal or formal business relationship with 821 a contractor who has been disqualified from bidding or proposing on 822 [state] contracts of any state contracting agency. 823 (c) Upon written request by the affected [state] contractor, bidder or 824 proposer, the State Contracting Standards Board may reduce the period 825 or extent of disqualification for a contractor, bidder or proposer if 826 documentation supporting any of the following reasons for 827 modification is provided to the board by the contractor, bidder or 828 proposer: 829 (1) Newly discovered material evidence; 830 (2) Reversal of the conviction upon which the disqualification was 831 based; 832 Substitute Bill No. 391 LCO 28 of 42 (3) Bona fide change in ownership or management; or 833 (4) Elimination of other causes for which the disqualification was 834 imposed. 835 Sec. 22. Section 4e-35 of the general statutes is repealed and the 836 following is substituted in lieu thereof (Effective July 1, 2024): 837 (a) For purposes of this section and sections 4e-37, as amended by this 838 act, and 4e-38, as amended by this act, "contracting agency of the state" 839 does not include a quasi-public agency. After reasonable notice and a 840 hearing, conducted in accordance with the provisions of chapter 54, the 841 department head of any [state] contracting agency of the state may 842 suspend any contractor, bidder or proposer for a period of not more 843 than six months from bidding on, applying for or performing work as a 844 contractor or subcontractor under, contracts with the state. The 845 department head shall issue a written decision not later than ninety days 846 after the conclusion of such hearing and state in the decision the reasons 847 for the action taken and, if the contractor, bidder or proposer is being 848 suspended, the period of such suspension. In determining whether to 849 suspend a contractor, bidder or proposer, the department head shall 850 consider the seriousness of the acts or omissions of the contractor, 851 bidder or proposer and any mitigating factors. The department head 852 shall send such decision to the contractor and the State Contracting 853 Standards Board by certified mail, return receipt requested. Such 854 decision shall be a final decision for purposes of sections 4-180 and 4-855 183. 856 (b) Causes for such suspension shall include the following: 857 (1) Failure without good cause to perform in accordance with 858 specifications or within the time limits provided in the contract; 859 (2) A record of failure to perform or of unsatisfactory performance in 860 accordance with the terms of one or more contracts, provided failure to 861 perform or unsatisfactory performance caused by acts beyond the 862 control of the contractor shall not be considered to be a basis for 863 Substitute Bill No. 391 LCO 29 of 42 suspension; 864 (3) Any cause the complainant [state] contracting agency of the state 865 determines to be so serious and compelling as to affect the responsibility 866 of a state contractor, including suspension by another [state] contracting 867 agency of the state for cause; or 868 (4) A violation of the ethical standards set forth in section 1-84, 1-86e 869 or 1-101nn, as determined by the Citizen's Ethics Advisory Board. 870 (c) The State Contracting Standards Board may grant an exception 871 permitting a suspended contractor to participate in a particular contract 872 or subcontract upon a written determination by the board that there is 873 good cause for such exception and that such exception is in the best 874 interest of the state. 875 (d) The department head of each [state] contracting agency of the 876 state shall conduct reviews of contractors and shall file reports 877 pertaining to any of the reasons set forth in this section that may be the 878 basis for disqualification. 879 Sec. 23. Subsections (g) to (i), inclusive, of section 4e-37 of the general 880 statutes are repealed and the following is substituted in lieu thereof 881 (Effective July 1, 2024): 882 (g) In the event that the appeals review subcommittee or the board 883 determines that a procedural violation occurred, or that allegations of 884 an unauthorized or unwarranted, noncompetitive selection process 885 have been substantiated, the board shall direct the [state] contracting 886 agency of the state to take corrective action not later than thirty days 887 after the date of the subcommittee's or board's decision, as applicable. 888 (h) In the event such appeal is found to be frivolous by the appeals 889 review subcommittee or the full board, such frivolous appeal may serve 890 as a basis for disqualification pursuant to section 4e-34, as amended by 891 this act. 892 (i) Any three members of the board may request a full board review 893 Substitute Bill No. 391 LCO 30 of 42 of any contract deliberation or award process of a [state] contracting 894 agency of the state. 895 Sec. 24. Section 4e-38 of the general statutes is repealed and the 896 following is substituted in lieu thereof (Effective July 1, 2024): 897 The State Contracting Standards Board shall issue a decision in 898 writing or take other appropriate action on each appeal submitted 899 pursuant to section 4e-37, as amended by this act. A copy of any decision 900 shall be provided to all parties, the department head of the [state] 901 contracting agency of the state and the Chief Procurement Officer. 902 Sec. 25. Subdivision (2) of section 4e-40 of the general statutes is 903 repealed and the following is substituted in lieu thereof (Effective July 1, 904 2024): 905 (2) If the person awarded the contract acted in bad faith: 906 (A) The contract may be declared null and void; or 907 (B) The contract may be ratified and affirmed if such action is in the 908 best interests of the state, as determined by the State Contracting 909 Standards Board, in writing, without prejudice to the [state's] state 910 contracting agency's right to such damages as may be appropriate. 911 Sec. 26. Section 4e-45 of the general statutes is repealed and the 912 following is substituted in lieu thereof (Effective July 1, 2024): 913 With respect to infrastructure facilities, not later than June 1, 2010, the 914 State Contracting Standards Board, in consultation with the state 915 contracting agencies and the Attorney General, shall adopt regulations, 916 in accordance with the provisions of chapter 54, requiring the inclusion 917 in [state] contracts with any state contracting agency of clauses 918 providing for adjustments in prices, time of performance, remedies, 919 termination or other contract provisions necessary to protect the 920 interests of the state. 921 Sec. 27. Section 4e-46 of the general statutes is repealed and the 922 Substitute Bill No. 391 LCO 31 of 42 following is substituted in lieu thereof (Effective July 1, 2024): 923 Not later than June 1, 2010, the State Contracting Standards Board 924 shall adopt regulations, in accordance with the provisions of chapter 54, 925 concerning the procedure and circumstances under which a state 926 contracting agency may allow contract modification, change order, or 927 contract price adjustment under a construction contract with the state 928 contracting agency in excess of fifty thousand dollars. Such regulations 929 shall require that every contract modification, change order or contract 930 price adjustment under a construction contract with the state 931 contracting agency in excess of fifty thousand dollars shall be subject to 932 prior written certification by the fiscal officer of the state contracting 933 agency or other agency responsible for funding the project or the 934 contract, or other official responsible for monitoring and reporting upon 935 the status of the costs of the total project budget or contract budget, as 936 to the effect of the contract modification, change order, or adjustment in 937 contract price on the total project budget or the total contract budget. 938 Such regulations shall further provide that in the event the certification 939 of the fiscal officer or other responsible official discloses a resulting 940 increase in the total project budget or the total contract budget, the 941 agency procurement officer shall not execute or make such contract 942 modification, change order, or adjustment in contract price unless 943 sufficient funds are available or the scope of the project or contract is 944 adjusted so as to permit the degree of completion that is feasible within 945 the total project budget or total contract budget as it existed prior to the 946 contract modification, change order, or adjustment in contract price 947 under consideration provided, with respect to the validity, as to the 948 contractor, of any executed contract modification, change order, or 949 adjustment in contract price which the contractor has reasonably relied 950 upon, it shall be presumed that there has been compliance with the 951 provisions of this section. 952 Sec. 28. Subsection (a) of section 4e-48 of the general statutes is 953 repealed and the following is substituted in lieu thereof (Effective July 1, 954 2024): 955 Substitute Bill No. 391 LCO 32 of 42 (a) For the purposes of this section, "nonresident bidder" means a 956 business that is not a resident of the state that submits a bid in response 957 to an invitation to bid by a state contracting agency, "resident bidder" 958 means a business that submits a bid in response to an invitation to bid 959 by a state contracting agency and that has paid unemployment taxes or 960 income taxes in this state during the twelve calendar months 961 immediately preceding submission of such bid, has a business address 962 in the state and has affirmatively claimed such status in the bid 963 submission, and "contract" [means "contract" as defined in section 4e-1 964 and "state contracting agency" means] and "state contracting agency" [, 965 as defined] have the same meanings as provided in section 4e-1, as 966 amended by this act. 967 Sec. 29. Section 4e-72 of the general statutes is repealed and the 968 following is substituted in lieu thereof (Effective July 1, 2024): 969 As used in this section, "contract", "state contracting agency", "data" 970 and "contractor" have the same meanings as provided in section 4e-1, as 971 amended by this act. Any contract between a state contracting agency 972 and a contractor that is entered into, renewed or amended on or after 973 October 1, 2021, or, in the case of a state contracting agency that is a 974 quasi-public agency, entered into, renewed or amended on or after July 975 1, 2024, shall contain a provision authorizing the state contracting 976 agency to access any data concerning such contract that is in the 977 possession or control of the contractor upon demand in a format 978 prescribed by the state contracting agency at no additional cost to such 979 agency. 980 Sec. 30. Subdivision (15) of section 15-31b of the 2024 supplement to 981 the general statutes is repealed and the following is substituted in lieu 982 thereof (Effective July 1, 2024): 983 (15) Invest in, acquire, lease, purchase, own, manage, hold and 984 dispose of real property and lease, convey or deal in or enter into 985 agreements with respect to such property on any terms necessary or 986 incidental to carrying out the purposes of sections 15-31a to 15-31i, 987 Substitute Bill No. 391 LCO 33 of 42 inclusive, provided such transactions shall not be subject to approval, 988 review or regulation by any state agency pursuant to title 4b or any other 989 provision of the general statutes, except (A) the authority shall not 990 convey fee simple ownership in any property associated with the ports 991 or harbors under its jurisdiction and control without the approval of the 992 State Properties Review Board and the Attorney General, and (B) as 993 provided in [subsection (c) of this section] chapter 62; and 994 Sec. 31. Subsections (b) and (c) of section 15-31b of the 2024 995 supplement to the general statutes are repealed and the following is 996 substituted in lieu thereof (Effective July 1, 2024): 997 (b) The authority shall continue as long as it has bonds or other 998 obligations outstanding and until its existence is terminated by law, 999 provided no such termination shall affect any outstanding contractual 1000 obligation of the authority and the state shall succeed to the obligations 1001 of the authority under any contract. Upon the termination of the 1002 existence of the authority, all its rights and properties shall pass to and 1003 be vested in the state of Connecticut. 1004 [(c) On and after June 23, 2021, the authority shall be a state 1005 contracting agency for the purposes of chapter 62, except for the 1006 provisions of section 4e-16, and shall be subject to the authority of the 1007 State Contracting Standards Board established under section 4e-2.] 1008 Sec. 32. Section 10a-196 of the general statutes is repealed and the 1009 following is substituted in lieu thereof (Effective July 1, 2024): 1010 Sections 10a-176 to 10a-195, inclusive, shall be deemed to provide a 1011 complete, additional and alternative method for the doing of the things 1012 authorized thereby, and shall be regarded as supplemental and 1013 additional to powers conferred by other laws; provided the issuance of 1014 bonds and refunding bonds under the provisions of this chapter need 1015 not comply with the requirements of any other law applicable to the 1016 issuance of bonds including, particularly, title 42a; and provided in the 1017 construction and acquisition of a project pursuant hereto the authority 1018 need not comply with the requirements of chapter 50. Except as 1019 Substitute Bill No. 391 LCO 34 of 42 otherwise expressly provided in this chapter and the provisions of 1020 chapter 62 concerning state contracting agencies, none of the powers 1021 granted to the authority under the provisions of this chapter shall be 1022 subject to the supervision or regulation or require the approval or 1023 consent of any municipality or political subdivision or any commission, 1024 board, body, bureau, official or agency thereof or of the state. 1025 Sec. 33. Subsection (s) of section 10a-204b of the general statutes is 1026 repealed and the following is substituted in lieu thereof (Effective July 1, 1027 2024): 1028 (s) The provisions of this section shall be deemed to provide a 1029 complete, additional and alternative method for the actions and the 1030 things authorized thereby and shall be regarded as supplemental and 1031 additional to powers granted by other laws; the issuance of bonds, notes 1032 or other obligations under the provisions of this section need not comply 1033 with the requirements of any law applicable to the issuance of bonds, 1034 notes or other obligations. This section, being necessary for the welfare 1035 of the state and its inhabitants, shall be liberally construed to affect its 1036 purpose. None of the powers granted to the corporation or to any 1037 subsidiary created pursuant to subdivision (5) of section 10a-204 under 1038 the provisions of this section shall be subject to the supervision or 1039 regulation or require the approval or consent of any municipality or 1040 political subdivision or any department, division, commission, board, 1041 body, bureau, official or agency thereof or of the state, and the exercise 1042 thereof shall not cause the corporation or any such subsidiary to be 1043 construed to be an agency within the scope of chapter 54 or a 1044 department, institution or agency of the state, except that the 1045 corporation or any such subsidiary shall comply with the provisions of 1046 chapter 62 concerning state contracting agencies. 1047 Sec. 34. Section 10a-243 of the general statutes is repealed and the 1048 following is substituted in lieu thereof (Effective July 1, 2024): 1049 The provisions of this chapter shall be deemed to provide a complete, 1050 additional and alternative method for the actions of the things 1051 Substitute Bill No. 391 LCO 35 of 42 authorized thereby and shall be regarded as supplemental and 1052 additional to powers granted by other laws; the issuance of revenue 1053 bonds or notes and revenue refunding bonds or notes under the 1054 provisions of this chapter need not comply with the requirements of any 1055 other law applicable to the issuance of bonds or notes. This chapter, 1056 being necessary for the welfare of the state and its inhabitants, shall be 1057 liberally construed to effect its purpose. Except as otherwise expressly 1058 provided in this chapter and in the provisions of chapter 62 concerning 1059 state contracting agencies, none of the powers granted to the authority 1060 under the provisions of this chapter shall be subject to the supervision 1061 or regulation or require the approval or consent of any municipality or 1062 political subdivision or any department, division, commission, board, 1063 body, bureau, official or agency thereof or of the state. The authority 1064 shall not be construed to be an agency within the scope of chapter 54 or 1065 a department, institution or agency of the state. 1066 Sec. 35. Subdivision (16) of subsection (b) of section 12-806 of the 2024 1067 supplement to the general statutes is repealed and the following is 1068 substituted in lieu thereof (Effective July 1, 2024): 1069 (16) To invest in, acquire, lease, purchase, own, manage, hold and 1070 dispose of real property and lease, convey or deal in or enter into 1071 agreements with respect to such property on any terms necessary or 1072 incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-1073 818, inclusive, and sections 12-853 and 12-854, provided such 1074 transactions shall not be subject to approval, review or regulation 1075 pursuant to title 4b or any other statute by any state agency, except that 1076 real property transactions shall be subject to review by the State 1077 Properties Review Board and contracts shall be subject to the provisions 1078 of chapter 62 concerning state contracting agencies; 1079 Sec. 36. Section 12-815 of the general statutes is repealed and the 1080 following is substituted in lieu thereof (Effective July 1, 2024): 1081 (a) The corporation shall establish and adopt specific policies, rules 1082 and procedures on purchasing and contracting. Such policies, rules and 1083 Substitute Bill No. 391 LCO 36 of 42 procedures or amendments thereto shall be approved by a two-thirds 1084 vote of the entire board. Notwithstanding any other provision of law to 1085 the contrary, the corporation may enter into management, consulting 1086 and other agreements for the provision of goods, services and 1087 professional advisors necessary or useful in connection with the 1088 operation and management of the lottery (1) pursuant to a process of 1089 open or competitive bidding, provided (A) the corporation shall first 1090 determine the format, content and scope of any agreement for any 1091 procurement of goods or services, the conditions under which bidding 1092 will take place and the schedule and stipulations for contract award, and 1093 (B) the corporation may select the contractor deemed to have submitted 1094 the most favorable bid, considering price and other factors, when, in the 1095 judgment of the corporation, such award is in the best interests of the 1096 corporation, or (2) if the corporation, in its discretion, determines that, 1097 due to the nature of the agreement to be contracted for or procured, 1098 open or public bidding is either impracticable or not in the best interests 1099 of the corporation, by negotiation with such prospective providers as 1100 the corporation may determine. The terms and conditions of agreements 1101 and the fees or other compensation to be paid to such persons shall be 1102 determined by the corporation. The agreements entered into by the 1103 corporation in accordance with the provisions of this section shall not 1104 be subject to the approval of any state department, office or agency, 1105 except as provided in chapter 62 in the provisions concerning state 1106 contracting agencies or in regulations adopted by the Department of 1107 Consumer Protection. Nothing in this section shall be deemed to restrict 1108 the discretion of the corporation to utilize its own staff and workforce 1109 for the performance of any of its assigned responsibilities and functions 1110 whenever, in the discretion of the corporation, it becomes necessary, 1111 convenient or desirable to do so. Copies of all agreements of the 1112 corporation shall be maintained by the corporation at its offices as public 1113 records, subject to said exemption. 1114 (b) [The] Except as provided in chapter 62, the corporation shall not 1115 be subject to rules, regulations or restrictions on purchasing or 1116 procurement or the disposition of assets generally applicable to 1117 Substitute Bill No. 391 LCO 37 of 42 Connecticut state agencies, including those contained in titles 4a and 4b 1118 and the corresponding rules and regulations. The board shall adopt 1119 rules and procedures on purchasing, procurement and the disposition 1120 of assets applicable to the corporation. The adoption of such rules or 1121 procedures shall not be subject to chapter 54. Any such rules or 1122 procedures shall be a public record, as defined in section 1-200. 1123 Sec. 37. Section 22a-268 of the general statutes is repealed and the 1124 following is substituted in lieu thereof (Effective July 1, 2024): 1125 The authority shall utilize private industry, by contract, to carry out 1126 the business, design, operating, management, marketing, planning and 1127 research and development functions of the authority, unless the 1128 authority determines that it is in the public interest to adopt another 1129 course of action. The authority is hereby empowered to enter into long-1130 term contracts with private persons for the performance of any such 1131 functions of the authority which, in the opinion of the authority, can 1132 desirably and conveniently be carried out by a private person under 1133 contract provided any such contract shall contain such terms and 1134 conditions as will enable the authority to retain overall supervision and 1135 control of the business, design, operating, management, transportation, 1136 marketing, planning and research and development functions to be 1137 carried out or to be performed by such private persons pursuant to such 1138 contract. Such contracts shall be entered into either on a competitive 1139 negotiation or competitive bidding basis, and the authority in its 1140 discretion may select the type of contract it deems most prudent to 1141 utilize, pursuant to the contracting procedures adopted under section 1142 22a-268a and considering the scope of work, the management 1143 complexities associated therewith, the extent of current and future 1144 technological development requirements and the best interests of the 1145 state. Whenever a long-term contract is entered into on other than a 1146 competitive bidding basis, the criteria and procedures therefor shall 1147 conform to applicable provisions of subdivision (16) of subsection (a) 1148 and subsections (b) and (c) of section 22a-266, provided however, that 1149 any contract for a period of over five years in duration, or any contract 1150 for which the annual consideration is greater than fifty thousand dollars 1151 Substitute Bill No. 391 LCO 38 of 42 shall be approved by a two-thirds vote of the authority's full board of 1152 directors. The terms and conditions of such contracts shall be 1153 determined by the authority, as shall the fees or other similar 1154 compensation to be paid to such persons for such contracts. The 1155 contracts entered into by the authority shall not be subject to the 1156 approval of any other state department, office or agency, except as 1157 provided in chapter 62, in the provisions concerning state contracting 1158 agencies. However, copies of all contracts of the authority shall be 1159 maintained by the authority as public records, subject to the proprietary 1160 rights of any party to the contract. Nothing of the aforesaid shall be 1161 deemed to restrict the discretion of the authority to utilize its own staff 1162 and work force for the performance of any of its assigned 1163 responsibilities and functions whenever, in the discretion of the 1164 authority, it becomes necessary, convenient or desirable to do so. Any 1165 litigation with respect to any terms, conditions or provisions of any 1166 contract of the authority, or the performance or nonperformance of same 1167 by either party, shall be tried before a judge of the Superior Court of 1168 Connecticut. 1169 Sec. 38. Subdivision (14) of section 31-49h of the general statutes is 1170 repealed and the following is substituted in lieu thereof (Effective July 1, 1171 2024): 1172 (14) Make and enter into any contract or agreement necessary or 1173 incidental to the performance of its duties and execution of its powers. 1174 [The] Except as provided in chapter 62, the contracts and agreements 1175 entered into by the authority shall not be subject to the approval of any 1176 other state department, office or agency, provided copies of all such 1177 contracts shall be maintained by the authority as public records, subject 1178 to the proprietary rights of any party to such contracts. No contract shall 1179 contain any provision in which any contractor derives any direct or 1180 indirect economic benefit from denying or otherwise influencing the 1181 outcome of any claim for benefits. The standard criteria for the 1182 evaluation of proposals relating to claims processing, web site 1183 development, database development, marketing and advertising, in the 1184 event the authority seeks the services of an outside contractor for such 1185 Substitute Bill No. 391 LCO 39 of 42 tasks, and for the evaluation of proposals relating to all other contracts 1186 in amounts equal to or exceeding two hundred fifty thousand dollars 1187 shall include, but need not be limited to: (A) Transparency, (B) cost, (C) 1188 efficiency of operations, (D) quality of work related to the contracts 1189 issued, (E) user experience, (F) accountability, and (G) a cost-benefit 1190 analysis documenting the direct and indirect costs of such contracts, 1191 including qualitative and quantitative benefits that will result from the 1192 implementation of such contracts. The establishment of additional 1193 standard criteria shall be approved by a two-thirds vote of the board 1194 after such criteria have been posted on a public Internet web site 1195 maintained by the authority for notice and comment for at least one 1196 week prior to such vote. 1197 Sec. 39. Subdivision (13) of section 38a-1083 of the general statutes is 1198 repealed and the following is substituted in lieu thereof (Effective July 1, 1199 2024): 1200 (13) Make and enter into any contract or agreement necessary or 1201 incidental to the performance of its duties and execution of its powers, 1202 including, but not limited to, an agreement with the Office of Health 1203 Strategy to use funds collected under this section for the operation of 1204 the all-payer claims database established under section 19a-755a and to 1205 receive data from such database. The contracts entered into by the 1206 exchange shall not be subject to the approval of any other state 1207 department, office or agency, provided copies of all contracts of the 1208 exchange shall be maintained by the exchange as public records, subject 1209 to the proprietary rights of any party to the contract, except (A) as 1210 provided in chapter 62, and (B) any agreement with the Office of Health 1211 Strategy shall be subject to approval by said office and the Office of 1212 Policy and Management and no portion of such agreement shall be 1213 considered proprietary; 1214 Sec. 40. Subsection (b) of section 46a-10b of the general statutes is 1215 repealed and the following is substituted in lieu thereof (Effective July 1, 1216 2024): 1217 Substitute Bill No. 391 LCO 40 of 42 (b) Notwithstanding the provisions of sections 4-212 to 4-219, 1218 inclusive, subdivision [(21)] (20) of section 4e-1, as amended by this act, 1219 and chapter 62a, not later than July 1, 2017, the Governor shall designate 1220 a nonprofit entity to serve as the Connecticut protection and advocacy 1221 system. 1222 Sec. 41. Subsection (a) of section 4e-30 of the general statutes is 1223 repealed and the following is substituted in lieu thereof (Effective July 1, 1224 2024): 1225 (a) A state contracting agency shall evaluate the financial condition 1226 of all bidders or proposers prior to selecting a bidder or proposer to 1227 perform a contract or subcontract. A state contracting agency may audit 1228 the books and records of a contractor or any subcontractor under any 1229 negotiated contract or subcontract to the extent that such books and 1230 records relate to the performance of such contract or subcontract. Such 1231 books and records shall be maintained by the contractor for a period of 1232 three years from the date of final payment under the prime contract and 1233 by the subcontractor for a period of three years from the expiration of 1234 the subcontract. 1235 Sec. 42. Section 4e-3 of the general statutes is amended by adding 1236 subsection (c) as follows (Effective July 1, 2024): 1237 (NEW) (c) Any provision of this title shall supersede any contrary 1238 provision concerning a state contracting agency or quasi-public agency 1239 in any provision of the general statutes. 1240 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 July 1, 2024 4e-1 Sec. 3 July 1, 2024 4e-2(g) and (h) Sec. 4 July 1, 2024 4e-3(a)(2) Sec. 5 July 1, 2024 4e-4 Sec. 6 July 1, 2024 4e-5(a) to (c) Sec. 7 July 1, 2024 4e-7(a) Substitute Bill No. 391 LCO 41 of 42 Sec. 8 July 1, 2024 4e-8 Sec. 9 July 1, 2024 4e-10(a) Sec. 10 July 1, 2024 4e-14 Sec. 11 July 1, 2024 4e-16(c) and (d) Sec. 12 July 1, 2024 4e-16(l)(2) to (4) Sec. 13 July 1, 2024 4e-16(n) Sec. 14 July 1, 2024 4e-16(p) Sec. 15 July 1, 2024 4e-17 Sec. 16 July 1, 2024 4e-18 Sec. 17 July 1, 2024 4e-21(c) Sec. 18 July 1, 2024 4e-24 Sec. 19 July 1, 2024 4e-27 Sec. 20 July 1, 2024 4e-31 Sec. 21 July 1, 2024 4e-34 Sec. 22 July 1, 2024 4e-35 Sec. 23 July 1, 2024 4e-37(g) to (i) Sec. 24 July 1, 2024 4e-38 Sec. 25 July 1, 2024 4e-40(2) Sec. 26 July 1, 2024 4e-45 Sec. 27 July 1, 2024 4e-46 Sec. 28 July 1, 2024 4e-48(a) Sec. 29 July 1, 2024 4e-72 Sec. 30 July 1, 2024 15-31b(15) Sec. 31 July 1, 2024 15-31b(b) and (c) Sec. 32 July 1, 2024 10a-196 Sec. 33 July 1, 2024 10a-204b(s) Sec. 34 July 1, 2024 10a-243 Sec. 35 July 1, 2024 12-806(b)(16) Sec. 36 July 1, 2024 12-815 Sec. 37 July 1, 2024 22a-268 Sec. 38 July 1, 2024 31-49h(14) Sec. 39 July 1, 2024 38a-1083(13) Sec. 40 July 1, 2024 46a-10b(b) Sec. 41 July 1, 2024 4e-30(a) Sec. 42 July 1, 2024 4e-3(c) Statement of Legislative Commissioners: In Section 2(8)(E), "state agency" was changed to "state contracting agency" for consistency. Substitute Bill No. 391 LCO 42 of 42 GAE Joint Favorable Subst.