LCO No. 4457 1 of 4 General Assembly Raised Bill No. 1358 January Session, 2025 LCO No. 4457 Referred to Committee on HUMAN SERVICES Introduced by: (HS) AN ACT CONCERNING EQUITABLE COMPENSATION FOR STATE - CONTRACTED 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 as amended by this act. 10 (b) Not later than January 1, 2026, and every five years thereafter, the 11 Secretary of the Office of Policy and Management shall, in consultation 12 with representatives of nonprofit human services providers, complete a 13 review of a portion of the state's purchase of service contracts and 14 personal service agreements with nonprofit human services providers 15 Raised Bill No. 1358 LCO No. 4457 2 of 4 to determine whether the rates such providers are paid to deliver health 16 and human services pursuant to such contracts or agreements 17 adequately compensate such providers for providing the level of 18 services expected by the state agency contracting with such provider. 19 For purposes of such review, the secretary shall examine the contracts 20 and agreements for such services of not less than two state agencies each 21 year. 22 (c) Not later than February 1, 2026, and every five years thereafter, 23 the secretary shall submit a report, in accordance with the provisions of 24 section 11-4a of the general statutes, to the joint standing committees of 25 the General Assembly having cognizance of matters relating to human 26 services, government administration and appropriations and the 27 budgets of state agencies. Such report shall include (1) a summary of the 28 results of the review conducted under subsection (b) of this section, (2) 29 any applicable recommendations concerning requiring contracting state 30 agencies to reduce contractual expectations if those expectations are not 31 adequately funded by the contract or agreement, and (3) any 32 recommended legislation necessary to implement such 33 recommendations. 34 Sec. 2. (NEW) (Effective from passage) (a) Not later than January 1, 2026, 35 and triennially thereafter, the Secretary of the Office of Policy and 36 Management shall conduct a review of any reports that nonprofit 37 human services providers are required to file with various state 38 agencies. Such review shall include, but not be limited to, looking at the 39 number of reports that are required to be filed, the amount of 40 overlapping information in such reports, the time and resources needed 41 for providers to prepare and file the reports, the reasons for requiring 42 such reports and an analysis of how the reports are utilized by the state 43 agency receiving such reports. State agencies and nonprofit human 44 services providers shall provide any information requested by the 45 secretary for purposes of such review. 46 (b) The secretary shall eliminate or consolidate any reporting 47 Raised Bill No. 1358 LCO No. 4457 3 of 4 required by a state agency that the secretary identifies under subsection 48 (a) of this section as unduly burdensome or duplicative, unless such 49 reporting is (1) necessary to prevent fraud or misuse of funds, (2) 50 prescribed under federal law or regulation for the use of federal funds, 51 or (3) required under any provision of state law. 52 (c) Not later than February 1, 2026, and triennially thereafter, the 53 secretary shall submit a report, in accordance with the provisions of 54 section 11-4a of the general statutes, to the joint standing committees of 55 the General Assembly having cognizance of matters relating to human 56 services, government administration and appropriations and the 57 budgets of state agencies. Such report shall include a summary of the 58 results of the review conducted under subsection (a) of this section, any 59 reporting eliminated or consolidated under subsection (b) of this section 60 and any recommendations for any legislation necessary to eliminate 61 burdensome or duplicative reporting requirements required under state 62 law. 63 Sec. 3. Subsection (d) of section 4-70b of the general statutes is 64 repealed and the following is substituted in lieu thereof (Effective July 1, 65 2025): 66 (d) The secretary shall establish uniform policies and procedures for 67 obtaining, managing and evaluating the quality and cost effectiveness 68 of direct health and human services purchased from a private provider 69 organization or municipality. Such policies and procedures shall 70 include, but need not be limited to, a requirement that a private provider 71 organization receive payment for any services provided pursuant to a 72 purchase of service contract not later than thirty days after delivery of 73 such services. The secretary shall require all state agencies which 74 purchase direct health and human services to comply with such policies 75 and procedures. 76 This act shall take effect as follows and shall amend the following sections: Raised Bill No. 1358 LCO No. 4457 4 of 4 Section 1 from passage New section Sec. 2 from passage New section Sec. 3 July 1, 2025 4-70b(d) Statement of Purpose: To provide equitable compensation for state-contracted nonprofit human services providers. [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.]