LCO 1 of 4 General Assembly Substitute Bill No. 432 February Session, 2024 AN ACT CONCERNING STATE CONTRACTS WITH NONPROFIT HUMAN SERVICES PROVIDERS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective from passage) (a) As used in this section and 1 section 2 of this act, (1) "nonprofit human services provider" means a 2 nonprofit entity that contracts with the state to provide health and 3 human services that may include, but need not be limited to: (A) 4 Services for persons with a physical disability, (B) services for persons 5 with intellectual disability or developmental disabilities, including, but 6 not limited to, autism spectrum disorder, and (C) behavioral health 7 services; and (2) "purchase of service contract" and "state agency" have 8 the same meanings as provided in section 4-70b of the general statutes. 9 (b) Not later than January 1, 2025, and annually thereafter, the 10 Secretary of the Office of Policy and Management shall, in consultation 11 with representatives of nonprofit human services providers, complete a 12 review of the state's purchase of service contracts with nonprofit human 13 services providers to determine whether the rates such providers are 14 paid to deliver health and human services pursuant to such contracts 15 adequately compensate such providers for providing the level of 16 services expected by the state agency contracting with such provider. 17 (c) Not later than February 1, 2025, and annually thereafter, the 18 secretary shall submit a report, in accordance with the provisions of 19 Substitute Bill No. 432 LCO 2 of 4 section 11-4a of the general statutes, to the joint standing committees of 20 the General Assembly having cognizance of matters relating to human 21 services, government administration and appropriations and the 22 budgets of state agencies. Such report shall include (1) a summary of the 23 results of the review conducted under subsection (b) of this section, (2) 24 any applicable recommendations concerning requiring contracting state 25 agencies to reduce contractual expectations if those expectations are not 26 adequately funded by the contract, and (3) any recommended 27 legislation necessary to implement such recommendations. 28 Sec. 2. (NEW) (Effective from passage) (a) Not later than January 1, 2025, 29 and triennially thereafter, the Secretary of the Office of Policy and 30 Management shall conduct a review of any reports that nonprofit 31 human services providers are required to file with various state 32 agencies. Such review shall include, but not be limited to, looking at the 33 number of reports that are required to be filed, the amount of 34 overlapping information in such reports, the time and resources needed 35 for providers to prepare and file the reports, the reasons for requiring 36 such reports and an analysis of how the reports are utilized by the state 37 agency receiving such reports. State agencies and nonprofit human 38 services providers shall provide any information requested by the 39 secretary for purposes of such review. 40 (b) The secretary shall eliminate or consolidate any reporting 41 required by a state agency that the secretary identifies under subsection 42 (a) of this section as unduly burdensome or duplicative, unless such 43 reporting is (1) necessary to prevent fraud or misuse of funds, (2) 44 prescribed under federal law or regulation for the use of federal funds, 45 or (3) required under any provision of state law. 46 (c) Not later than February 1, 2025, and triennially thereafter, the 47 secretary shall submit a report, in accordance with the provisions of 48 section 11-4a of the general statutes, to the joint standing committees of 49 the General Assembly having cognizance of matters relating to human 50 services, government administration and appropriations and the 51 budgets of state agencies. Such report shall include a summary of the 52 Substitute Bill No. 432 LCO 3 of 4 results of the review conducted under subsection (a) of this section, any 53 reporting eliminated or consolidated under subsection (a) of this section 54 and any recommendations for any legislation necessary to eliminate 55 burdensome or duplicative reporting requirements required under state 56 law. 57 Sec. 3. Subsection (d) of section 4-70b of the general statutes is 58 repealed and the following is substituted in lieu thereof (Effective July 1, 59 2024): 60 (d) The secretary shall establish uniform policies and procedures for 61 obtaining, managing and evaluating the quality and cost effectiveness 62 of direct health and human services purchased from a private provider 63 organization or municipality. Such policies and procedures shall 64 include, but not be limited to, a requirement that a private provider 65 organization receive payment for any services provided pursuant to a 66 purchase of service contract not later than thirty days after delivery of 67 such services. The secretary shall require all state agencies which 68 purchase direct health and human services to comply with such policies 69 and procedures. 70 Sec. 4. (Effective from passage) The Secretary of the Office of Policy and 71 Management, in consultation with the State Comptroller, shall (1) 72 conduct a review of the CORE-CT system to detect inefficiencies, in 73 particular accessibility issues or financial reporting inefficiencies, 74 concerning the use of said system by nonprofit private provider 75 organizations that provide health and human services to residents of 76 this state pursuant to contracts with state agencies, and (2) update any 77 features of the CORE-CT system that are identified pursuant to such 78 review as outdated. 79 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 from passage New section Sec. 3 July 1, 2024 4-70b(d) Substitute Bill No. 432 LCO 4 of 4 Sec. 4 from passage New section Statement of Legislative Commissioners: In Section 2(c), "annually" was changed to "triennially" for consistency. GAE Joint Favorable Subst. -LCO