LCO 1 of 8 General Assembly Substitute Bill No. 7184 January Session, 2025 AN ACT CONCERNING GOVERNMENT OVERSIGHT , INCLUDING A REVIEW OF STATE PURCHASE OF SERVICE CONTRACTS WITH NONPROFIT PROVIDERS, STATE AGENCY CONTRACTS FOR CONSULTING SERVICES, MUNICIPAL GRANTS AND CERTAIN NONRESIDENT BIDDER CONTRACT AWARDS . Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (Effective from passage) The Office of Legislative 1 Management shall conduct a study regarding the feasibility of 2 reestablishing the duties, responsibilities and staffing of the former 3 Legislative Program Review and Investigations Committee within the 4 joint standing committee of the General Assembly having cognizance of 5 matters relating to government oversight, including, but not limited to, 6 what additional staffing it would require, what costs would be 7 associated with providing additional resources for the committee and 8 any potential benefits of such reestablishment. Not later than February 9 1, 2026, the executive director of the Office of Legislative Management 10 shall submit a report, in accordance with the provisions of section 11-4a 11 of the general statutes, to the joint standing committee of the General 12 Assembly having cognizance of matters relating to government 13 oversight. Such report shall include any findings of such study and any 14 recommendations for legislation to implement such findings. 15 Sec. 2. (NEW) (Effective from passage) (a) As used in this section and 16 Substitute Bill No. 7184 LCO 2 of 8 section 3 of this act, (1) "nonprofit human services provider" means a 17 nonprofit entity that contracts with the state to provide health and 18 human services that may include, but need not be limited to: (A) 19 Services for persons with a physical disability, (B) services for persons 20 with intellectual disability or developmental disabilities, including, but 21 not limited to, autism spectrum disorder, and (C) behavioral health 22 services; and (2) "purchase of service contract" and "state agency" have 23 the same meanings as provided in section 4-70b of the general statutes, 24 as amended by this act. 25 (b) Not later than January 1, 2026, and every five years thereafter, the 26 Secretary of the Office of Policy and Management shall, in consultation 27 with representatives of nonprofit human services providers, complete a 28 review of the state's purchase of service contracts with nonprofit human 29 services providers to determine whether the rates such providers are 30 paid to deliver health and human services pursuant to such contracts 31 adequately compensate such providers for providing the level of 32 services expected by the state agency contracting with such provider. 33 For any review conducted after July 1, 2026, the secretary shall examine 34 the contracts and agreements for such services of not less than two state 35 agencies each year. 36 (c) Not later than February 1, 2027, and every five years thereafter, 37 the secretary shall submit a report, in accordance with the provisions of 38 section 11-4a of the general statutes, to the joint standing committees of 39 the General Assembly having cognizance of matters relating to human 40 services, government administration, government oversight and 41 appropriations and the budgets of state agencies. Such report shall 42 include (1) a summary of the results of the review conducted under 43 subsection (b) of this section, (2) any applicable recommendations 44 concerning requiring contracting state agencies to reduce contractual 45 expectations if those expectations are not adequately funded by the 46 contract or agreement, and (3) any recommended legislation necessary 47 to implement such recommendations. 48 Sec. 3. (NEW) (Effective from passage) (a) Not later than January 1, 2026, 49 Substitute Bill No. 7184 LCO 3 of 8 and triennially thereafter, the Secretary of the Office of Policy and 50 Management shall conduct a review of any reports that nonprofit 51 human services providers are required to file with various state 52 agencies, including requirements for program licensure or certification. 53 Such review shall include, but not be limited to, the number of reports 54 that are required to be filed, the amount of overlapping information in 55 such reports, the time and resources needed for providers to prepare 56 and file the reports, the reasons for requiring such reports and an 57 analysis of how the reports are utilized by the state agency receiving 58 such reports. State agencies and nonprofit human services providers 59 shall provide any information requested by the secretary for purposes 60 of such review. 61 (b) The secretary shall eliminate or consolidate any reporting 62 required by a state agency that the secretary identifies under subsection 63 (a) of this section as unduly burdensome or duplicative, unless such 64 reporting is (1) necessary to prevent fraud or misuse of funds, (2) 65 prescribed under federal law or regulation for the use of federal funds, 66 or (3) required under any provision of state law. 67 (c) Not later than February 1, 2027, and triennially thereafter, the 68 secretary shall submit a report, in accordance with the provisions of 69 section 11-4a of the general statutes, to the joint standing committees of 70 the General Assembly having cognizance of matters relating to human 71 services, government administration, government oversight and 72 appropriations and the budgets of state agencies. Such report shall 73 include a summary of the results of the review conducted under 74 subsection (a) of this section, any reporting eliminated or consolidated 75 under subsection (b) of this section and any recommendations for any 76 legislation necessary to eliminate burdensome or duplicative reporting 77 requirements required under state law. 78 Sec. 4. Subsection (d) of section 4-70b of the general statutes is 79 repealed and the following is substituted in lieu thereof (Effective July 1, 80 2025): 81 Substitute Bill No. 7184 LCO 4 of 8 (d) The secretary shall establish uniform policies and procedures for 82 obtaining, managing and evaluating the quality and cost effectiveness 83 of direct health and human services purchased from a private provider 84 organization or municipality. To the extent permissible under federal 85 law, such policies and procedures shall include, but not be limited to, a 86 requirement that a private provider organization receive payment for 87 any services provided pursuant to a purchase of service contract not 88 later than forty-five days after the receipt of a properly completed claim 89 or the receipt of such services, whichever is later, in accordance with 90 section 4a-71. The secretary shall require all state agencies which 91 purchase direct health and human services to comply with such policies 92 and procedures. 93 Sec. 5. (NEW) (Effective from passage) (a) As used in this section: 94 (1) "Consultant" means any professional who (A) is registered or 95 licensed to practice such profession in accordance with the applicable 96 provisions of the general statutes or any planner or any environmental, 97 management or financial specialist, and (B) provides consultant services 98 to a state agency pursuant to a contract with such state agency, 99 including, but not limited to, any architect, professional engineer, 100 accountant, planner or environmental, management or financial 101 specialist; 102 (2) "Consultant services" includes administrative, planning, analysis, 103 statistical or research services rendered by any architect, professional 104 engineer, accountant, planner or environmental, management or 105 financial specialist as well as incidental services that members of such 106 professions and those in their employ are authorized to perform, for 107 purposes of recommending a state agency course of action; 108 (3) "Firm" means any individual, partnership, corporation, joint 109 venture, association or other legal entity authorized by law to offer 110 consultant services; and 111 (4) "State agency" means any office, department, board, council, 112 commission, institution, constituent unit of the state system of higher 113 Substitute Bill No. 7184 LCO 5 of 8 education, technical education and career school or other agency in the 114 executive branch of state government. 115 (b) Any state agency that contracts with a firm to provide consulting 116 services at a cost of one hundred thousand dollars or more for purposes 117 of producing a study or other report with recommendations for future 118 actions for the state agency to undertake shall, not later than one year 119 after receiving the results of such study or a final report from such firm, 120 submit a report, in accordance with the provisions of section 11-4a of the 121 general statutes, to the joint standing committee of the General 122 Assembly having cognizance of matters relating to government 123 oversight, summarizing the findings of the entity's report, whether any 124 recommendations have been implemented by the agency, whether the 125 state agency intends to implement any such recommendations in the 126 future and, if applicable, by what date. 127 Sec. 6. Section 2-90 of the general statutes is amended by adding 128 subsection (j) as follows (Effective October 1, 2025): 129 (NEW) (j) Said auditors shall audit, in accordance with the provisions 130 of section 7 of this act, the records and accounts of any municipality that 131 received a grant, as described in section 7 of this act, to the extent 132 necessary to determine how the funds of such grant were used. Any 133 municipality being audited by said auditors shall provide any 134 information said auditors deem necessary to conduct such audit. 135 Sec. 7. (NEW) (Effective October 1, 2025) (a) On and after October 1, 136 2025, any municipality, as defined in section 4-66l of the general statutes, 137 that receives a grant of funds from the state for purposes of conducting 138 a study shall report (1) the completion of such study to the Auditors of 139 Public Accounts for potential audit of any funds provided for such 140 study, and (2) the findings of any such study to the Office of Policy and 141 Management for posting on the Municipal Grant Portal established 142 under section 4-68dd of the general statutes, as amended by this act, on 143 a form prescribed by the Secretary of the Office of Policy and 144 Management. A municipality shall not be eligible to receive more than 145 Substitute Bill No. 7184 LCO 6 of 8 one such state grant from a state agency through the same grant 146 program for purposes of the same study within a three-year period. 147 (b) The auditors shall submit, in accordance with the provisions of 148 section 11-4a of the general statutes, a report with the results of any such 149 audit to the joint standing committee of the General Assembly having 150 cognizance of matters relating to government oversight. The auditors 151 may consolidate such reports, provided such reports shall be submitted 152 to the committee not less than annually. 153 Sec. 8. Section 4-68dd of the general statutes is repealed and the 154 following is substituted in lieu thereof (Effective October 1, 2025): 155 (a) [The] Not later than January 1, 2026, the Secretary of the Office of 156 Policy and Management shall, within available appropriations, 157 establish and maintain a single electronic portal available on the Internet 158 and located on the Office of Policy and Management's Internet web site 159 for the purpose of posting all state-funded municipal grant applications. 160 Such electronic portal shall be known as the Municipal Grant Portal. 161 (b) The Municipal Grant Portal shall include, but not be limited to: (1) 162 All state-funded municipal grant applications and municipal 163 reimbursement request forms, (2) a searchable database for locating 164 information regarding state-funded municipal grants, [and] (3) not later 165 than July 1, 2026, a searchable database of the reported findings of any 166 study funded by a state grant, as described in section 7 of this act, and 167 (4) features to encourage the active recruitment and participation of 168 municipalities in the state-funded municipal grant application process. 169 Sec. 9. Section 4a-57d of the general statutes is repealed and the 170 following is substituted in lieu thereof (Effective October 1, 2025): 171 (a) On or before January 1, 2012, the Commissioner of Administrative 172 Services, in consultation with the Labor Commissioner, the president of 173 The University of Connecticut and the Commissioner of Transportation, 174 or their designees, shall submit a report, in accordance with the 175 provisions of section 11-4a, to the Governor and the joint standing 176 Substitute Bill No. 7184 LCO 7 of 8 committee of the General Assembly having cognizance of matters 177 relating to labor. Such report shall include (1) an analysis of any law or 178 economic factor that results in a resident bidder being at a disadvantage 179 to a nonresident bidder in submitting the lowest responsible qualified 180 bid, (2) the reason any enacted law designed to give preference to state 181 citizens for employment on public works projects is not being enforced, 182 and (3) recommendations for administrative or legislative action, within 183 the confines of clause 3 of section 8 of article 1 of the United States 184 Constitution, to increase the number of state contracts awarded to 185 resident bidders through an in-state contract preference or otherwise. 186 (b) On or before July 1, 2012, the Commissioner of Administrative 187 Services shall develop and implement a program to increase the number 188 of state contracts awarded to resident bidders through an in-state 189 contract preference or other method selected by the commissioner, 190 provided such program shall not violate clause 3 of section 8 of article 1 191 of the United States Constitution. In developing such program, the 192 commissioner shall consider the findings contained in the report made 193 in accordance with subsection (a) of this section. 194 (c) On or before February 1, 2026, and annually thereafter, the 195 Commissioner of Administrative Services shall submit a report, in 196 accordance with the provisions of section 11-4a, to the joint standing 197 committee of the General Assembly having cognizance of matters 198 relating to government administration on the number of state contracts 199 in excess of fifty thousand dollars that the Department of 200 Administrative Services awarded to nonresident bidders during the 201 calendar year immediately preceding such report, including a 202 description of the goods or services provided pursuant to such contract, 203 the term and cost of the contract and the method of selecting the 204 nonresident bidder. The commissioner may consolidate such report 205 with any other report required to be submitted to such committee. 206 Sec. 10. (NEW) (Effective October 1, 2025) On or before February 1, 207 2026, and annually thereafter, the Commissioner of Transportation shall 208 submit a report, in accordance with the provisions of section 11-4a of the 209 Substitute Bill No. 7184 LCO 8 of 8 general statutes, to the joint standing committee of the General 210 Assembly having cognizance of matters relating to transportation on the 211 number of state contracts in excess of fifty thousand dollars that the 212 Department of Transportation awarded to nonresident bidders during 213 the calendar year immediately preceding such report, including a 214 description of the goods or services provided pursuant to such contract, 215 the term and cost of the contract and the method of selecting the 216 nonresident bidder. The commissioner may consolidate such report 217 with any other report required to be submitted to such committee. 218 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 from passage New section Sec. 4 July 1, 2025 4-70b(d) Sec. 5 from passage New section Sec. 6 October 1, 2025 2-90(j) Sec. 7 October 1, 2025 New section Sec. 8 October 1, 2025 4-68dd Sec. 9 October 1, 2025 4a-57d Sec. 10 October 1, 2025 New section GOS Joint Favorable Subst.