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General Assembly Raised Bill No. 1231
January Session, 2025
LCO No. 3823
Referred to Committee on GOVERNMENT ADMINISTRATION
AND ELECTIONS
Introduced by:
(GAE)
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, 2026, and every five years 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
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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
For the purposes of such review, the secretary shall examine the 18
contracts and agreements for such services of not less than two state 19
agencies each year. 20
(c) Not later than February 1, 2027, and every five years thereafter, 21
the secretary shall submit a report, in accordance with the provisions of 22
section 11-4a of the general statutes, to the joint standing committees of 23
the General Assembly having cognizance of matters relating to human 24
services, government administration and appropriations and the 25
budgets of state agencies. Such report shall include (1) a summary of the 26
results of the review conducted under subsection (b) of this section, (2) 27
any applicable recommendations concerning requiring contracting state 28
agencies to reduce contractual expectations if those expectations are not 29
adequately funded by the contract or agreement, and (3) any 30
recommended legislation necessary to implement such 31
recommendations. 32
Sec. 2. (NEW) (Effective from passage) (a) Not later than January 1, 2026, 33
and triennially thereafter, the Secretary of the Office of Policy and 34
Management shall conduct a review of any reports that nonprofit 35
human services providers are required to file with various state 36
agencies, including requirements for program licensure or certification. 37
Such review shall include, but not be limited to, the number of reports 38
that are required to be filed, the amount of overlapping information in 39
such reports, the time and resources needed for providers to prepare 40
and file the reports, the reasons for requiring such reports and an 41
analysis of how the reports are utilized by the state agency receiving 42
such reports. State agencies and nonprofit human services providers 43
shall provide any information requested by the secretary for purposes 44
of such review. 45
(b) The secretary shall eliminate or consolidate any reporting 46
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required by a state agency that the secretary identifies under subsection 47
(a) of this section as unduly burdensome or duplicative, unless such 48
reporting is (1) necessary to prevent fraud or misuse of funds, (2) 49
prescribed under federal law or regulation for the use of federal funds, 50
or (3) required under any provision of state law. 51
(c) Not later than February 1, 2027, and triennially thereafter, the 52
secretary shall submit a report, in accordance with the provisions of 53
section 11-4a of the general statutes, to the joint standing committees of 54
the General Assembly having cognizance of matters relating to human 55
services, government administration and appropriations and the 56
budgets of state agencies. Such report shall include a summary of the 57
results of the review conducted under subsection (a) of this section, any 58
reporting eliminated or consolidated under subsection (a) of this section 59
and any recommendations for any legislation necessary to eliminate 60
burdensome or duplicative reporting requirements required under state 61
law. 62
Sec. 3. Subsection (d) of section 4-70b of the general statutes is 63
repealed and the following is substituted in lieu thereof (Effective July 1, 64
2025): 65
(d) The secretary shall establish uniform policies and procedures for 66
obtaining, managing and evaluating the quality and cost effectiveness 67
of direct health and human services purchased from a private provider 68
organization or municipality. To the extent permissible under federal 69
law, such policies and procedures shall include, but not be limited to, a 70
requirement that a private provider organization receive payment for 71
any services provided pursuant to a purchase of service contract not 72
later than forty-five days after the receipt of a properly completed claim 73
or the receipt of such services, whichever is later, in accordance with 74
section 4a-71. The secretary shall require all state agencies which 75
purchase direct health and human services to comply with such policies 76
and procedures 77
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Sec. 4. Sections 17a-227d and 17a-476a of the general statutes are 78
repealed. (Effective from passage) 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, 2025 4-70b(d)
Sec. 4 from passage Repealer section
Statement of Purpose:
To (1) require the Secretary of the Office of Policy and Management to
conduct reviews of the level of services and reporting requirements of
nonprofit human services providers, and (2) repeal provisions
concerning the cost allowance cap for executive director salaries in
certain state agencies' calculations of grants to nonstate organizations
that provide employment opportunities, day services, or residential
facility services.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]