Connecticut 2025 2025 Regular Session

Connecticut House Bill HB07184 Comm Sub / Analysis

Filed 04/03/2025

                     
Researcher: LRH 	Page 1 	4/3/25 
 
 
 
OLR Bill Analysis 
sHB 7184  
 
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.  
 
TABLE OF CONTENTS: 
§ 1 — PRI STUDY 
Requires OLM to study the feasibility of reestablishing PRI within the Government Oversight 
Committee 
§ 2 — ADEQUATE COMPE NSATION FOR NONPROFIT HUMAN 
SERVICES PROVIDERS 
Requires the OPM secretary to report every five years on whether state contracts with nonprofit 
human services providers adequately compensate the providers 
§ 3 — BURDENSOME AND DUPLICATIVE REPORTING 
REQUIREMENTS 
Requires the OPM secretary, every three years, to report on burdensome or duplicative 
reporting requirements for nonprofit human services providers 
§ 4 — TIMELY PAYMENTS TO NONPROFIT HUMAN SERVICES 
PROVIDERS 
Requires the OPM secretary, to the extent allowed under federal law, to require that state 
agencies pay the providers within 45 days after they deliver their contracted services or submit 
a properly completed claim 
§ 5 — CONSULTANT REPORTS 
Requires each state agency that contracts for certain consultant services to give the 
Government Oversight Committee a report on the agency’s implementation of the consultant’s 
recommendations 
§§ 6-8 — STATE GRANTS FOR MUNICIPAL STUDIES 
Requires APA to audit municipalities that receive state grants to conduct studies; requires 
OPM’s Municipal Grant Portal to include a database of the studies’ results 
§§ 9 & 10 — DAS AND DOT OUT-OF-STATE CONTRACTING 
REPORTS 
Requires DAS and DOT to each annually report on their contracts over $50,000 awarded to 
nonresident bidders 
SUMMARY 
This bill makes various unrelated changes to the general statutes, as 
described in the section-by-section analysis below.  2025HB-07184-R000521-BA.DOCX 
 
Researcher: LRH 	Page 2 	4/3/25 
 
EFFECTIVE DATE: Various; see below.  
§ 1 — PRI STUDY  
Requires OLM to study the feasibility of reestablishing PRI within the Government 
Oversight Committee 
The bill requires the Office of Legislative Management (OLM) to 
study the feasibility of reestablishing the duties, responsibilities, and 
staffing of the former Legislative Program Review and Investigations 
Committee (PRI) within the Government Oversight Committee. The 
study must at least cover (1) what additional staffing it would require, 
(2) the costs associated with giving the committee additional resources, 
and (3) any potential benefits to reestablishing PRI. OLM’s executive 
director must submit the study, including any findings and 
recommendations for legislation, to the Government Oversight 
Committee by February 1, 2026. 
EFFECTIVE DATE: Upon passage 
Background — Related Bill 
sHB 5422, favorably reported by the Government Administration 
and Elections (GAE) Committee, statutorily reestablishes PRI. 
§ 2 — ADEQUATE COMPE NSATION FOR NONPROFI T HUMAN 
SERVICES PROVIDERS 
Requires the OPM secretary to report every five years on whether state contracts with 
nonprofit human services providers adequately compensate the providers 
The bill requires the Office of Policy and Management (OPM) 
secretary to complete a review of the state’s purchase of service 
contracts and personal service agreements with nonprofit human 
services providers to determine whether their pay rates adequately 
compensate the providers for the level of service expected by their 
contracting state agency. The review must be done in consultation with 
the providers’ representatives. The bill requires the first review to be 
finished by January 1, 2026, followed by another review every five years. 
For reviews done after July 1, 2026, OPM must review the contracts and 
agreements of at least two state agencies each year. 
Then, starting by February 1, 2027, the secretary must submit a report  2025HB-07184-R000521-BA.DOCX 
 
Researcher: LRH 	Page 3 	4/3/25 
 
to the Human Services, G AE, Government Oversight, and 
Appropriations committees every five years. 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 or 
agreement, and (3) any recommended legislation needed to implement 
the recommendations. 
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. 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. 
EFFECTIVE DATE: Upon passage 
Background — Related Bill 
SB 1231 (File 130), favorably reported by the GAE Committee, 
includes a substantially similar provision. 
§ 3 — BURDENSOME AND DUPLICATIVE REPORTI NG 
REQUIREMENTS 
Requires the OPM secretary, every three years, to report on burdensome or duplicative 
reporting requirements for nonprofit human services providers 
The bill requires the OPM secretary, starting by January 1, 2026, to 
triennially review any reports that nonprofit human services providers 
must file with state agencies, including those for program licensure or 
certification. 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  2025HB-07184-R000521-BA.DOCX 
 
Researcher: LRH 	Page 4 	4/3/25 
 
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. 
Starting by February 1, 2027, the secretary must triennially submit a 
report to the Human Services, GAE, Government Oversight, and 
Appropriations committees. The report must include a summary of the 
review’s results, any reporting eliminated or consolidated as required 
by the bill, and any recommendations for legislation needed to eliminate 
burdensome or duplicative reporting requirements under state law. 
EFFECTIVE DATE: Upon passage 
Background — Related Bill 
SB 1231 (File 130), favorably reported by the GAE Committee, 
includes a substantially similar provision. 
§ 4 — TIMELY PAYMENTS TO NONPROF IT HUMAN SERVICES 
PROVIDERS 
Requires the OPM secretary, to the extent allowed under federal law, to require that state 
agencies pay the providers within 45 days after they deliver their contracted services or 
submit a properly completed claim 
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, to the extent allowed under 
federal law, a requirement that a private provider organization be paid 
for services it delivers under a purchase of service contract within 45 
days after receipt of the services or a properly completed claim, 
whichever is later. In addition, the payments must comply with the law 
on prompt payment by state departments and agencies, which generally 
requires state agencies to pay interest on amounts due when they fail to 
make timely payments.   2025HB-07184-R000521-BA.DOCX 
 
Researcher: LRH 	Page 5 	4/3/25 
 
As under existing law, the secretary must require all state agencies 
that purchase direct health and human services to follow these policies 
and procedures. 
EFFECTIVE DATE: July 1, 2025 
Background — Related Bill 
SB 1231 (File 130), favorably reported by the GAE Committee, 
includes an identical provision. 
§ 5 — CONSULTANT REP ORTS 
Requires each state agency that contracts for certain consultant services to give the 
Government Oversight Committee a report on the agency’s implementation of the 
consultant’s recommendations  
The bill requires any state agency that contracts for at least $100,000 
in consulting services for a study with recommendations for future 
actions by the agency to submit a report to the Government Oversight 
Committee. The report must summarize the findings of the consultant’s 
report and whether the agency has implemented or intends to 
implement any of its recommendations, and if so, by what date. The 
agency must submit the report to the committee within one year after 
receiving the study results or final report from the consulting service. 
For this provision, a “state agency” is any office, department, board, 
council, commission, institution, constituent unit of the state higher 
education system, technical education and career school, or other 
executive branch agency.  
“Consultant services” include administrative, planning, analysis, 
statistical, or research services rendered by an architect; professional 
engineer; accountant; planner; or environmental, management, or 
financial specialist (including incidental services that those professions 
and their employees are authorized to perform) to recommend a state 
agency’s course of action.  
EFFECTIVE DATE: Upon passage 
§§ 6-8 — STATE GRANTS FOR MUNICIPAL STUDIES  2025HB-07184-R000521-BA.DOCX 
 
Researcher: LRH 	Page 6 	4/3/25 
 
Requires APA to audit municipalities that receive state grants to conduct studies; 
requires OPM’s Municipal Grant Portal to include a database of the studies’ results 
The bill requires any municipality that receives a state grant to 
conduct a study to report the study’s (1) completion to the Auditors of 
Public Accounts (APA) for potential audit of any funds provided for the 
study and (2) findings to OPM for posting on the Municipal Grant Portal 
on a form set by the OPM secretary. The bill prohibits a municipality 
from receiving more than one state grant for the same study, through 
the same grant program, within a three-year period.  
The bill correspondingly requires APA to audit the records and 
accounts of any municipality that received a state grant to conduct a 
study to the extent needed to determine how the grant funds were used. 
Any municipality being audited by APA must provide any information 
APA needs for the audit.  
Under the bill, APA must submit a report with the audit’s results to 
the Government Oversight Committee. APA may consolidate these 
reports as long as they are submitted to the committee at least annually. 
Current law requires the OPM secretary to establish the Municipal 
Grant Portal on OPM’s website for posting all state-funded municipal 
grant applications. The bill sets a January 1, 2026, deadline for this to 
occur. It also expands the information that must be available on the 
portal to include, by July 1, 2026, a searchable database of the reported 
findings of any study funded by a state grant as described above. 
EFFECTIVE DATE: October 1, 2025 
§§ 9 & 10 — DAS AND DOT OUT-OF-STATE CONTRACTING 
REPORTS 
Requires DAS and DOT to each annually report on their contracts over $50,000 awarded 
to nonresident bidders  
The bill requires the Department of Administrative Services (DAS) 
and Department of Transportation (DOT) commissioners, starting by 
February 1, 2026, to each annually report on the number of state 
contracts over $50,000 that their respective agency awarded to 
nonresident bidders over the preceding calendar year. The reports must  2025HB-07184-R000521-BA.DOCX 
 
Researcher: LRH 	Page 7 	4/3/25 
 
include a description of the goods or services provided under each 
contract, its terms and cost, and how the nonresident bidder was 
selected. The DAS commissioner must submit her report to the GAE 
Committee, and the DOT commissioner must submit his report to the 
Transportation Committee. Each may consolidate the report with any 
other report their department must submit to the respective committee. 
EFFECTIVE DATE: October 1, 2025 
COMMITTEE ACTION 
Government Oversight Committee 
Joint Favorable Substitute 
Yea 12 Nay 0 (03/18/2025)