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OLR Bill Analysis
sSB 432
AN ACT CONCERNING STATE CONTRACTS WITH NONPROFIT
HUMAN SERVICES PROVIDERS.
SUMMARY
This bill generally requires the Office of Policy and Management
(OPM) secretary to review and report on certain issues that affect
nonprofit human services providers that contract with state agencies.
More specifically, it requires him to report on (1) whether the contracts
adequately compensate the providers for the level of service expected
by their contracting state agency and (2) any burdensome or duplicative
reporting requirements the providers must meet for the state.
The bill also requires the secretary to (1) require that state agencies
pay the providers within 30 days after they deliver their contracted
services and (2) review and update the state’s integrated human
resources, payroll, and financial system (CORE-CT), in consultation
with the state comptroller, for inefficiency issues that affect the
providers’ accessibility or financial reporting.
Under the bill, a “nonprofit human services provider” is a nonprofit
entity that contracts with the state to provide health and human services
such as (1) services for people with a physical disability; (2) services for
people with intellectual or developmental disabilities, including autism
spectrum disorder; and (3) behavioral health services. A “state agency”
is any department, board, council, commission, institution, or other
executive branch agency.
EFFECTIVE DATE: Upon passage, except that the provision that
requires the providers to be paid within 30 days is effective July 1, 2024.
ADEQUATE COMPENSATIO N FOR PROVIDERS
The bill requires the OPM secretary to annually review the state’s
purchase of service contracts with nonprofit human services providers 2024SB-00432-R000397-BA.DOCX
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to determine whether their pay rates adequately compensate the
providers for the level of service expected by their contracting state
agency. The annual review must be done in consultation with
representatives of these providers, with the first review completed by
January 1, 2025.
Then, starting by February 1, 2025, the secretary must annually
submit a report to the Human Services, Government Administration
and Elections (GAE), and Appropriations committees. The report must
include (1) a summary of the review, (2) any applicable
recommendations on requiring contracting state agencies to reduce
their contractual expectations if they are not adequately funded by the
contract, and (3) any recommended legislation needed to implement the
recommendations.
Under the bill a “purchase of service contract” is a contract between
a state agency and a private provider organization or municipality (but
not an individual) to obtain direct health and human services for agency
clients, but generally not for material goods, or administrative, clerical,
training, or consulting services.
BURDENSOME AND DUPLI CATIVE REPORTING REQ UIREMENTS
The bill requires the OPM secretary, starting by January 1, 2025, to
triennially review any reports that nonprofit human services providers
must file with state agencies. The review must at least look at (1) how
many reports must be filed, (2) the amount of overlapping information
in them, (3) the time and resources needed to prepare and file them, (4)
why the reports are required, and (5) how state agencies use them. State
agencies and the providers must give the secretary any information he
requests for the review.
The bill requires the secretary to eliminate or consolidate any
reporting requirement that he identifies in the review as unduly
burdensome or duplicative, unless it is (1) needed to prevent fraud or
misuse of funds, (2) required by federal law or regulations to use federal
funds, or (3) required by state law (it is unclear whether the secretary
has the authority to eliminate or consolidate a different agency’s 2024SB-00432-R000397-BA.DOCX
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reporting requirements).
Starting by February 1, 2025, the secretary must triennially submit a
report to the Human Services, GAE, and Appropriations committees.
The report must include a summary of the results of the review, any
reporting eliminated or consolidated as required by the bill (it appears
the bill has an incorrect internal reference), and any recommendations
for legislation needed to eliminate burdensome or duplicative reporting
requirements under state law.
PAYMENTS TO PROVIDER S
By law, the OPM secretary must set uniform policies and procedures
for obtaining, managing, and evaluating the quality and cost
effectiveness of direct health and human services purchased from
private provider organizations or municipalities. Under the bill, these
policies and procedures must include a requirement that each private
provider organization be paid within 30 days for services it delivers
under a purchase of service contract. As under existing law, the
secretary must require all state agencies that purchase direct health and
human services to comply with these policies and procedures.
CORE-CT
The bill requires the OPM secretary, in consultation with the
comptroller, to review CORE-CT to detect inefficiencies, particularly
those that affect accessibility or financial reporting for nonprofit private
provider organizations that provide health and human services to state
residents under contracts with state agencies. It requires the secretary
and comptroller to update any CORE-CT features that the review
identifies as outdated (the bill does not specify a frequency or deadline
for the review and update to occur).
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable
Yea 19 Nay 0 (03/22/2024)