Connecticut 2025 2025 Regular Session

Connecticut Senate Bill SB01231 Comm Sub / Bill

Filed 03/19/2025

                     
 
LCO   	1 of 4 
  
General Assembly  Substitute Bill No. 1231  
January Session, 2025 
 
 
 
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 
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 any review conducted after July 1, 2026, the secretary shall examine 18 
the contracts and agreements for such services of not less than two state 19 
agencies each year. 20  Substitute Bill No. 1231 
 
 
LCO     	2 of 4 
 
(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 
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  Substitute Bill No. 1231 
 
 
LCO     	3 of 4 
 
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 (b) 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 
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) 
 
Statement of Legislative Commissioners:   
In section 1(b), "For the purposes of such review" was replaced with "For 
any review conducted after January 1, 2026", for clarity.  Substitute Bill No. 1231 
 
 
LCO     	4 of 4 
 
 
GAE Joint Favorable Subst.