LCO No. 4155 } 1 of 43 General Assembly Raised Bill No. 1499 January Session, 2025 LCO No. 4155 Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS Introduced by: (GAE) AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE STATE CONTRACTING STANDARDS BOARD. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective from passage) (a) Notwithstanding any 1 provision of the general statutes, the appropriations recommended for 2 the State Contracting Standards Board shall be the estimates of 3 expenditure requirements transmitted to the Secretary of the Office of 4 Policy and Management by the executive director of the board and the 5 recommended adjustments and revisions of such estimates shall be the 6 recommended adjustments and revisions, if any, transmitted by said 7 executive director to the Office of Policy and Management. 8 (b) Notwithstanding any provision of the general statutes, the 9 Governor shall not reduce allotment requisitions or allotments in force 10 concerning the State Contracting Standards Board. 11 Sec. 2. Section 4e-1 of the general statutes is repealed and the 12 following is substituted in lieu thereof (Effective July 1, 2025): 13 Raised Bill No. 1499 LCO No. 4155 2 of 43 For the purposes of this section and sections [4e-1] 4e-2 to 4e-47, 14 inclusive, as amended by this act: 15 (1) "Best value selection" means a contract selection process in which 16 the award of a contract is based on a combination of quality, timeliness 17 and cost factors; 18 (2) "Bid" means an offer, submitted in response to an invitation to bid, 19 to furnish supplies, materials, equipment, construction or contractual 20 services to a state contracting agency under prescribed conditions at a 21 stated price; 22 (3) "Bidder" means a business submitting a bid in response to an 23 invitation to bid by a state contracting agency; 24 (4) "Business" means any individual or sole proprietorship, 25 partnership, firm, corporation, trust, limited liability company, limited 26 liability partnership, joint stock company, joint venture, association or 27 other legal entity through which business for profit or not-for-profit is 28 conducted; 29 (5) "Competitive bidding" means the submission of prices by a 30 business competing for a contract to provide supplies, materials, 31 equipment or contractual services to a state contracting agency, under a 32 procedure in which the contracting authority does not negotiate prices, 33 as set forth in statutes and regulations concerning procurement; 34 (6) "Consultant" means (A) any architect, professional engineer, 35 landscape architect, land surveyor, accountant, interior designer, 36 environmental professional or construction administrator, who is 37 registered or licensed to practice such person's profession in accordance 38 with the applicable provisions of the general statutes, (B) any planner or 39 any environmental, management or financial specialist, or (C) any 40 person who performs professional work in areas including, but not 41 limited to, educational services, medical services, information 42 technology and real estate appraisal; 43 Raised Bill No. 1499 LCO No. 4155 3 of 43 (7) "Consultant services" means those professional services rendered 44 by a consultant and any incidental services that a consultant and those 45 in the consultant's employ are authorized to perform; 46 (8) "Contract" [or "state contract"] means an agreement or a 47 combination or series of agreements between a state contracting agency 48 [or quasi-public agency] and a business for: 49 (A) A project for the construction, reconstruction, alteration, 50 remodeling, repair or demolition of any public building, public work, 51 mass transit, rail station, parking garage, rail track or airport; 52 (B) Services, including, but not limited to, consultant and professional 53 services; 54 (C) The acquisition or disposition of personal property; 55 (D) The provision of goods and services, including, but not limited 56 to, the use of purchase of services contracts and personal service 57 agreements; 58 (E) The provision of information technology, state agency 59 information system or telecommunication system facilities, equipment 60 or services; 61 (F) A lease; or 62 (G) A licensing agreement; 63 "Contract" [or "state contract"] does not include a contract between a 64 state contracting agency [or a quasi-public agency] and a political 65 subdivision of the state; 66 [(9) "Term contract" means the agreement reached when the state 67 accepts a bid or proposal to furnish supplies, materials, equipment or 68 contractual services at a stated price for a specific period of time in 69 response to an invitation to bid;] 70 Raised Bill No. 1499 LCO No. 4155 4 of 43 [(10)] (9) "Contract risk assessment" means (A) the identification and 71 evaluation of loss exposures and risks, including, but not limited to, 72 business and legal risks associated with the contracting process and the 73 contracted goods and services, and (B) the identification, evaluation and 74 implementation of measures available to minimize potential loss 75 exposures and risks; 76 [(11)] (10) "Contractor" means any business that is awarded, or is a 77 subcontractor under, a contract or an amendment to a contract with a 78 state contracting agency under statutes and regulations concerning 79 procurement, including, but not limited to, a small contractor, minority 80 business enterprise, an individual with a disability, as defined in section 81 4a-60, or an organization providing products and services by persons 82 with disabilities; 83 [(12)] (11) "Contractual services" means the furnishing of labor by a 84 contractor, not involving the delivery of a specific end product other 85 than reports, which are merely incidental to the required performance 86 and includes any and all laundry and cleaning service, pest control 87 service, janitorial service, security service, the rental and repair, or 88 maintenance, of equipment, machinery and other [state-owned] 89 personal property owned by a state contracting agency, advertising and 90 photostating, mimeographing, human services and other service 91 arrangements where the services are provided by persons other than 92 state employees or quasi-public agency employees. "Contractual 93 services" includes the design, development and implementation of 94 technology, communications or telecommunications systems or the 95 infrastructure pertaining thereto, including hardware and software and 96 services for which a contractor is conferred a benefit by the state, 97 whether or not compensated by the state. "Contractual services" does 98 not include employment agreements or collective bargaining 99 agreements; 100 [(13)] (12) "Data" means recorded information, regardless of form or 101 characteristic; 102 Raised Bill No. 1499 LCO No. 4155 5 of 43 [(14)] (13) "Vote of two-thirds of the members of the board present 103 and voting" means a vote by the State Contracting Standards Board that 104 is agreed upon by two-thirds of the members of the State Contracting 105 Standards Board present and voting for a particular purpose and that 106 includes the vote of one member of the board appointed by a legislative 107 leader; 108 [(15)] (14) "Electronic" means electrical, digital, magnetic, optical, 109 electromagnetic, or any other similar technology; 110 [(16)] (15) "Emergency procurement" means procurement by a state 111 contracting agency, [quasi-public agency, as defined in section 1-120,] 112 judicial department or constituent unit of higher education that is made 113 necessary by a sudden, unexpected occurrence that poses a clear and 114 imminent danger to public safety or requires immediate action to 115 prevent or mitigate the loss or impairment of life, health, property or 116 essential public services or in response to a court order, settlement 117 agreement or other similar legal judgment; 118 [(17)] (16) "Equipment" means personal property of a durable nature 119 that retains its identity throughout its useful life; 120 [(18)] (17) "Materials" means items required to perform a function or 121 used in a manufacturing process, particularly those incorporated into 122 an end product or consumed in its manufacture; 123 [(19)] (18) "Nonprofit agency" means any organization that is not a 124 for-profit business under Section 501(c)(3) of the Internal Revenue Code 125 of 1986, or any subsequent corresponding internal revenue code of the 126 United States, as amended from time to time, [amended,] makes no 127 distribution to its members, directors or officers and provides services 128 contracted for by (A) the state or a quasi-public agency, or (B) a nonstate 129 entity; 130 [(20)] (19) "Professional services" means any type of service to the 131 public that requires that members of a profession rendering such service 132 Raised Bill No. 1499 LCO No. 4155 6 of 43 obtain a license or other legal authorization as a condition precedent to 133 the rendition thereof, including, but not limited to, the professional 134 services of architects, professional engineers, or jointly by architects and 135 professional engineers, landscape architects, certified public 136 accountants and public accountants, land surveyors, attorneys-at-law, 137 psychologists, licensed marital and family therapists, licensed 138 professional counselors and licensed clinical social workers as well as 139 such other professional services described in section 33-182a; 140 [(21)] (20) "Privatization contract" means an agreement or series of 141 agreements between a state contracting agency and a person or entity in 142 which such person or entity agrees to provide services that are 143 substantially similar to and in lieu of services provided, in whole or in 144 part, by state employees or quasi-public agency employees, other than 145 contracts with a nonprofit agency, which are in effect as of January 1, 146 2009, and which through a renewal, modification, extension or 147 rebidding of contracts continue to be provided by a nonprofit agency; 148 [(22)] (21) "Procurement" means contracting for, buying, purchasing, 149 renting, leasing or otherwise acquiring or disposing of, any supplies, 150 services, including, but not limited to, contracts for purchase of services 151 and personal service agreements, interest in real property, or 152 construction, and includes all government functions that relate to such 153 activities, including best value selection and qualification based 154 selection; 155 [(23)] (22) "Proposer" means a business submitting a proposal to a 156 state contracting agency in response to a request for proposals or other 157 competitive sealed proposal; 158 [(24)] (23) "Public record" [means a public record, as defined] has the 159 same meaning as provided in section 1-200; 160 [(25)] (24) "Qualification based selection" means a contract selection 161 process in which the award of a contract is primarily based on an 162 assessment of contractor qualifications and on the negotiation of a fair 163 Raised Bill No. 1499 LCO No. 4155 7 of 43 and reasonable price; 164 [(26)] (25) "Regulation" [means regulation, as defined] has the same 165 meaning as provided in section 4-166; 166 [(27)] (26) "Request for proposals" means all documents, whether 167 attached or incorporated by reference, utilized for soliciting proposals; 168 [(28)] (27) "State contracting agency" means any executive branch 169 agency, board, commission, department, office, institution or council 170 and any quasi-public agency. "State contracting agency" does not 171 include the judicial branch, the legislative branch, the offices of the 172 Secretary of the State, the State Comptroller, the Attorney General, the 173 State Treasurer, with respect to their constitutional functions [,] or any 174 state agency with respect to contracts specific to the constitutional and 175 statutory functions of the office of the State Treasurer. For [the purposes 176 of every provision of this chapter other than section 4e-16, "state 177 contracting agency" includes the Connecticut Port Authority, for] the 178 purposes of section 4e-16, as amended by this act, "state contracting 179 agency" includes any constituent unit of the state system of higher 180 education; [and for the purposes of section 4e-19, "state contracting 181 agency" includes the State Education Resource Center, established 182 under section 10-4q;] 183 [(29)] (28) "Subcontractor" means a subcontractor of a contractor for 184 work under a contract or an amendment to a contract; 185 [(30)] (29) "Supplies" means any and all articles of personal property, 186 including, but not limited to, equipment, materials, printing, insurance 187 and leases of real property, excluding land or a permanent interest in 188 land furnished to or used by any state contracting agency; 189 [(31)] (30) "Infrastructure facility" means a building, structure or 190 network of buildings, structures, pipes, controls and equipment that 191 provide transportation, utilities, public education or public safety 192 services. [Infrastructure facility] "Infrastructure facility" includes 193 Raised Bill No. 1499 LCO No. 4155 8 of 43 government office buildings, public schools, jails, water treatment 194 plants, distribution systems and pumping stations, wastewater 195 treatment plants, collections systems and pumping stations, solid waste 196 disposal plants, incinerators, landfills, and related facilities, public roads 197 and streets, highways, public parking facilities, public transportation 198 systems, terminals and rolling stock, rail, air and water port structures, 199 terminals and equipment; [and] 200 [(32)] (31) "State employee" [means state employee, as defined] has 201 the same meaning as provided in section 5-154 and, for purposes of 202 section 4e-16, as amended by this act, [state employee] includes an 203 employee of any state contracting agency that is not a quasi-public 204 agency; and 205 (32) "Quasi-public agency" has the same meaning as provided in 206 section 1-120. 207 Sec. 3. Subsection (g) of section 4e-2 of the general statutes is repealed 208 and the following is substituted in lieu thereof (Effective July 1, 2025): 209 (g) The board shall appoint a Chief Procurement Officer for a term 210 not to exceed six years, unless reappointed pursuant to the provisions 211 of this subsection. The Chief Procurement Officer shall report to the 212 board and annually be evaluated by, and serve at the pleasure of, the 213 board. For administrative purposes only, the Chief Procurement Officer 214 shall be supervised by the executive director. 215 (1) The Chief Procurement Officer shall be responsible for carrying 216 out the policies of the board relating to procurement including, but not 217 limited to, oversight, investigation, auditing, agency procurement 218 certification and procurement and project management training and 219 enforcement of [said] such policies as well as the application of such 220 policies to the screening and evaluation of current and prospective 221 contractors. The Chief Procurement Officer may enter into such 222 contractual agreements as may be necessary for the discharge of the 223 duties as set forth in this subsection and by the board, including, but not 224 Raised Bill No. 1499 LCO No. 4155 9 of 43 limited to, recommending best practices and providing operational and 225 administrative assistance to state agencies determined, by the board, to 226 be in violation of sections 4e-16 to 4e-47, inclusive, as amended by this 227 act. 228 (2) In addition to the duties set forth by the board, the Chief 229 Procurement Officer shall (A) oversee state contracting agency 230 compliance with the provisions of statutes and regulations concerning 231 procurement; (B) monitor and assess the performance of the 232 procurement duties of each agency procurement officer; (C) administer 233 the certification system and monitor the level of agency compliance with 234 the requirements of statutes and regulations concerning procurement, 235 including, but not limited to, the education and training, performance 236 and qualifications of agency procurement officers; (D) review and 237 monitor the procurement processes of each state contracting agency [, 238 quasi-public agencies] and [institutions] institution of higher education; 239 and (E) serve as chairperson of the Contracting Standards Advisory 240 Council. 241 Sec. 4. Section 4e-3 of the general statutes is repealed and the 242 following is substituted in lieu thereof (Effective July 1, 2025): 243 (a) All rights, powers, duties and authority relating to the 244 procurement policies of the state, vested in, or exercised by, any state 245 contracting agency may also be exercised by the board, provided such 246 rights, powers, duties and authority may be exercised by the board as 247 provided in this section and sections 4e-4 to 4e-47, inclusive, as amended 248 by this act, and absent any affirmative action by the board, pursuant to 249 said sections, shall not be deemed to limit or restrict the exercise of such 250 rights, powers, duties and authority by any such state contracting 251 agency. Such rights, powers, duties and authority shall include the 252 following: 253 (1) Acquisition of supplies, services, and construction, and the 254 management, control, warehousing, sale, and disposal of supplies, 255 Raised Bill No. 1499 LCO No. 4155 10 of 43 services, and construction; 256 (2) Any state contracting agency's contracting and procurement 257 processes, including, but not limited to, leasing and property transfers, 258 purchasing or leasing of supplies, materials or equipment, consultant or 259 consultant services, purchase of service agreements or privatization 260 contracts; and 261 (3) Contracts for the construction, reconstruction, alteration, 262 remodeling, repair or demolition of any public building. 263 (b) Notwithstanding any provision of chapter 14, upon request by the 264 board, each state contracting agency, including institutions of higher 265 education, shall provide the board, in a timely manner, with such 266 procurement information as the board deems necessary. The board shall 267 have access to all information, files and records related to any state 268 contracting agency in furtherance of the board's duties, as described in 269 this section and sections 4e-4 to 4e-47, inclusive, as amended by this act. 270 Nothing in this section shall be construed to require the board's 271 disclosure of documents that are exempt from disclosure pursuant to 272 chapter 14. 273 (c) Any provision of this title shall supersede any contrary provision 274 concerning a state contracting agency or quasi-public agency in any 275 provision of the general statutes. 276 Sec. 5. Section 4e-4 of the general statutes is repealed and the 277 following is substituted in lieu thereof (Effective July 1, 2025): 278 Except as otherwise provided in the general statutes, the board shall 279 have the following authority and responsibilities with respect to 280 procurements by state contracting agencies: 281 [(a) Recommend] (1) To recommend the repeal of repetitive, 282 conflicting or obsolete statutes concerning state contracting agency 283 procurement; 284 Raised Bill No. 1499 LCO No. 4155 11 of 43 [(b) Review] (2) To review and make recommendations concerning 285 proposed legislation and regulations concerning procurement, 286 management, control, and disposal of any and all supplies, services, and 287 construction to be procured by [the] state contracting agencies, 288 including, but not limited to: 289 [(1)] (A) Conditions and procedures for delegation of procurement 290 authority; 291 [(2)] (B) Prequalification, suspension, debarment and reinstatement 292 of prospective bidders and contractors; 293 [(3)] (C) Small purchase procedures; 294 [(4)] (D) Conditions and procedures for the procurement of 295 perishables and items for resale; 296 [(5)] (E) Conditions and procedures for the use of source selection 297 methods authorized by statutes and regulations concerning 298 procurement; 299 [(6)] (F) Conditions and procedures for the use of emergency 300 procurements; 301 [(7)] (G) Conditions and procedures for the selection of contractors by 302 processes or methods that restrict full and open competition; 303 [(8)] (H) The opening or rejection of bids and offers, and waiver of 304 errors in bids and offers; 305 [(9)] (I) Confidentiality of technical data and trade secrets submitted 306 by actual or prospective bidders; 307 [(10)] (J) Partial, progressive and multiple awards; 308 [(11)] (K) Supervision of storerooms and inventories, including 309 determination of appropriate stock levels and the management, 310 transfer, sale or other disposal of publicly-owned supplies; 311 Raised Bill No. 1499 LCO No. 4155 12 of 43 [(12)] (L) Definitions and classes of contractual services and 312 procedures for acquiring such services; 313 [(13)] (M) Regulations providing for conducting cost and price 314 analysis; 315 [(14)] (N) Use of payment and performance bonds; 316 [(15)] (O) Guidelines for use of cost principles in negotiations, 317 adjustments and settlements; and 318 [(16)] (P) Identification of procurement best practices; 319 [(c) Adopt] (3) To adopt regulations, [pursuant to] in accordance with 320 the provisions of chapter 54, to carry out the provisions of statutes 321 concerning procurement, in order to facilitate consistent application of 322 the law and require the implementation of procurement best practices; 323 [(d) Make] (4) To make recommendations with regard to information 324 systems for state contracting agency procurement including, but not 325 limited to, data element and design and the State Contracting Portal; 326 [(e) Develop] (5) To develop a guide to state statutes and regulations 327 concerning procurement, for use by all state contracting agencies; 328 [(f) Assist] (6) To assist state contracting agencies in complying with 329 the statutes and regulations concerning procurement by providing 330 guidance, models, advice and practical assistance to state contracting 331 agency staff relating to: [(1)] (A) Buying the best service at the best price, 332 [(2)] (B) properly selecting contractors, and [(3)] (C) drafting contracts 333 that achieve state goals of accountability, transparency and results 334 based outcomes and to protect taxpayers' interest; 335 [(g) Train] (7) To train and oversee the agency procurement officer of 336 each state contracting agency and any contracting officers thereunder; 337 [(h) Review] (8) To review and certify, on or after January 1, 2009, that 338 Raised Bill No. 1499 LCO No. 4155 13 of 43 a state contracting agency's procurement processes are in compliance 339 with statutes and regulations concerning procurement by: 340 [(1)] (A) Establishing procurement and project management 341 education and training criteria and certification procedures for agency 342 procurement officers and contracting officers. All agency procurement 343 officers and contracting officers designated under this [provision] 344 subparagraph shall be required to maintain the certification in good 345 standing at all times while performing procurement functions; 346 [(2)] (B) Approving an ethics training course, in consultation with the 347 Office of State Ethics, including, but not limited to, state employees and 348 quasi-public agency employees involved in procurement and for state 349 contractors and substantial subcontractors who are prequalified 350 pursuant to chapter 58a. Such ethics training course may be developed 351 and provided by the Office of State Ethics or by any person, firm or 352 corporation, provided such course is approved by the State Contracting 353 Standards Board; 354 [(i) Recertify] (9) To recertify each state contracting agency's 355 procurement processes, triennially, and provide agencies with notice of 356 any certification deficiency and exercise those powers authorized by 357 section 4e-34, as amended by this act, 4e-39 or 4e-40,as amended by this 358 act, as applicable, if a determination of noncompliance is made; 359 [(j) Define] (10) To define the contract data reporting requirements to 360 the board for state agencies concerning information on: [(1)] (A) The 361 number and type of [state] contracts of each state contracting agency 362 currently in effect state-wide; [(2)] (B) the term and dollar value of such 363 contracts; [(3)] (C) a list of client agencies; [(4)] (D) a description of 364 services purchased under such contracts; [(5)] (E) contractor names; [(6)] 365 (F) an evaluation of contractor performance, including, but not limited 366 to records pertaining to the suspension or disqualification of 367 contractors, and assuring such information is available on the State 368 Contracting Portal; and [(7)] (G) a list of contracts and contractors 369 Raised Bill No. 1499 LCO No. 4155 14 of 43 awarded without full and open competition stating the reasons [for] 370 therefor and identifying the approving authority; and 371 [(k) Provide] (11) To provide the Governor and the joint standing 372 committee of the General Assembly having cognizance of matters 373 relating to government administration with recommendations 374 concerning the statutes and regulations concerning procurement. 375 Sec. 6. Subsections (a) to (c), inclusive, of section 4e-5 of the general 376 statutes are repealed and the following is substituted in lieu thereof 377 (Effective July 1, 2025): 378 (a) (1) The head of each state contracting agency shall appoint an 379 agency procurement officer. Such officer shall serve as the liaison 380 between the agency and the Chief Procurement Officer on all matters 381 relating to the agency's procurement activity, including, but not limited 382 to, implementation and compliance with the provisions of statutes and 383 regulations concerning procurement and any policies or regulations 384 adopted by the board, coordination of the training and education of 385 agency procurement employees and any person serving on the 386 Contracting Standards Advisory Council; 387 (2) The agency procurement officer shall be responsible for [assuring] 388 (A) ensuring that any invitation to bid, request for proposals or any 389 other solicitation for goods and services issued on or after July 1, 2025, 390 contains a notice of the rights of prospective bidders, proposers or 391 prospective contractors under section 4e-36, (B) ensuring that 392 contractors are properly screened prior to the award of a contract, (C) 393 ensuring that contractors are advised of their rights under section 4e-36, 394 prior to entering into a contract on or after July 1, 2025, (D) ensuring 395 that, upon the award of such a contract, unsuccessful bidders, proposers 396 or respondents are advised of their rights under section 4e-36, (E) 397 evaluating contractor performance during and at the conclusion of a 398 contract, (F) submitting written evaluations to a central data repository 399 to be designated by the board, and (G) creating a project management 400 Raised Bill No. 1499 LCO No. 4155 15 of 43 plan for the agency with annual reports to the board pertaining to 401 procurement projects within the agency. 402 (b) The State Contracting Standards Board, with the advice and 403 assistance of the Commissioner of Administrative Services, shall 404 develop a standardized state procurement and project management 405 education and training program. Such education and training program 406 shall develop education, training and professional development 407 opportunities for employees of state contracting agencies charged with 408 procurement responsibilities. The education and training program shall 409 educate such employees in general business acumen and on proper 410 purchasing procedures as established in statutes and regulations 411 concerning procurement with an emphasis on ethics, fairness, 412 consistency and project management. Participation in the education and 413 training program shall be required of any supervisory and 414 nonsupervisory state employees in state contracting agencies with 415 responsibility for buying, purchasing, renting, leasing or otherwise 416 acquiring any supplies, service or construction, including the 417 preparation of the description of requirements, selection and solicitation 418 of sources, preparation and award of contracts and all phases of contract 419 administration. 420 (c) The education and training program shall include, but shall not be 421 limited to, (1) training and education concerning federal, state and 422 municipal procurement processes, including the statutes and 423 regulations concerning procurement; (2) training and education courses 424 developed in cooperation with the Office of State Ethics, the Freedom of 425 Information Commission, the State Elections Enforcement Commission, 426 the Commission on Human Rights and Opportunities, the office of the 427 Attorney General and any other state agency the board determines is 428 necessary in carrying out statutes and regulations concerning 429 procurement; (3) [providing] technical assistance to state contracting 430 agencies and municipalities for implementing statutes and regulations 431 concerning procurement, regulations, policies and standards developed 432 by the board; (4) training [to] of current and prospective contractors and 433 Raised Bill No. 1499 LCO No. 4155 16 of 43 vendors and others seeking to do business with [the] state contracting 434 agencies; and (5) training and education of state employees and quasi-435 public agencies in the area of best procurement practices in [state] 436 purchasing with the goal of achieving the level of acumen necessary to 437 achieve the objectives of statutes and regulations concerning 438 procurement. 439 Sec. 7. Subsection (a) of section 4e-7 of the general statutes is repealed 440 and the following is substituted in lieu thereof (Effective July 1, 2025): 441 (a) For cause, the State Contracting Standards Board may review, 442 terminate or recommend to a state contracting agency the termination 443 of any contract or procurement agreement undertaken by any state 444 contracting agency after providing fifteen days' notice to the state 445 contracting agency and the applicable contractor, and consulting with 446 the Attorney General. Such termination of a contract or procurement 447 agreement by the board may occur only after (1) the board has consulted 448 with the state contracting agency to determine the impact of an 449 immediate termination of the contract, (2) a determination has been 450 made jointly by the board and the state contracting agency that an 451 immediate termination of the contract will not create imminent peril to 452 the public health, safety or welfare, (3) a vote of two-thirds of the 453 members of the board present and voting for that purpose, and (4) the 454 board has provided the state contracting agency and the contractor with 455 opportunity for a hearing conducted pursuant to the provisions of 456 chapter 54. Such action shall be accompanied by notice to the state 457 contracting agency and any other affected party. For the purpose of this 458 section, "for cause" means: (A) A violation of section 1-84 or 1-86e, as 459 determined by the Citizen's Ethics Advisory Board; (B) wanton or 460 reckless disregard of any state or quasi-public agency contracting and 461 procurement process by any person substantially involved in such 462 contract or state contracting agency; or (C) notification from the 463 Attorney General to the state contracting agency that an investigation 464 pursuant to section 4-61dd has concluded that the process by which 465 such contract was awarded was compromised by fraud, collusion or any 466 Raised Bill No. 1499 LCO No. 4155 17 of 43 other criminal violation. Nothing in this section shall be construed to 467 limit the authority of the board as described in section 4e-6. 468 Sec. 8. Section 4e-8 of the general statutes is repealed and the 469 following is substituted in lieu thereof (Effective July 1, 2025): 470 There is established a Contracting Standards Advisory Council, 471 which shall consist of representatives from the Office of Policy and 472 Management, Departments of Administrative Services and 473 Transportation, [and] representatives of at least three additional state 474 contracting agencies that are not quasi-public agencies, including at 475 least one human services related state agency, to be designated by the 476 Governor and at least four additional state contracting agencies that are 477 quasi-public agencies, two to be appointed by the speaker of the House 478 of Representatives and two to be appointed by the president pro 479 tempore of the Senate. The Chief Procurement Officer shall be a member 480 of the council and serve as chairperson. The advisory council shall meet 481 at least four times per year to discuss state contracting agency 482 procurement issues and to make recommendations for improvement of 483 [the] procurement processes to the State Contracting Standards Board. 484 The advisory council may conduct studies, research and analyses and 485 make reports and recommendations with respect to subjects or matters 486 within the jurisdiction of the State Contracting Standards Board. 487 Sec. 9. Subsection (a) of section 4e-10 of the general statutes is 488 repealed and the following is substituted in lieu thereof (Effective July 1, 489 2025): 490 (a) On or before July 1, 2010, the board shall submit to the Governor 491 and the General Assembly such legislation as is necessary to permit state 492 contracting agencies, not including [quasi-publics] quasi-public 493 agencies, institutions of higher education, and municipal procurement 494 processes utilizing state funds, to carry out their functions under 495 statutes and regulations concerning procurement. 496 Sec. 10. Section 4e-14 of the general statutes is repealed and the 497 Raised Bill No. 1499 LCO No. 4155 18 of 43 following is substituted in lieu thereof (Effective July 1, 2025): 498 On and after June 1, 2010, all [state] contracts of each state contracting 499 agency that is not a quasi-public agency that take effect on or after June 500 1, 2010, shall contain provisions to ensure accountability, transparency 501 and [results based] results-based outcomes, as prescribed by the State 502 Contracting Standards Board. On and after June 1, 2010, all state 503 contracts of the legislative branch and the judicial branch that take effect 504 on or after June 1, 2010, shall contain provisions to ensure 505 accountability, transparency and [results based] results-based 506 outcomes. On and after July 1, 2025, all contracts of each state 507 contracting agency that is a quasi-public agency that take effect on or 508 after July 1, 2025, shall contain provisions to ensure accountability, 509 transparency and results-based outcomes. 510 Sec. 11. Subsections (c) and (d) of section 4e-16 of the general statutes 511 are repealed and the following is substituted in lieu thereof (Effective July 512 1, 2025): 513 (c) (1) If such cost-benefit analysis identifies a cost savings to the state 514 contracting agency of ten per cent or more, and such privatization 515 contract will not diminish the quality of such service, the state 516 contracting agency shall develop a business case, in accordance with the 517 provisions of subsection (d) of this section, in order to evaluate the 518 feasibility of entering into any such contract and to identify the potential 519 results, effectiveness and efficiency of such contract. 520 (2) If such cost-benefit analysis identifies a cost savings of less than 521 ten per cent to the state contracting agency and such privatization 522 contract will not diminish the quality of such service, the state 523 contracting agency may develop a business case, in accordance with the 524 provisions of subsection (d) of this section, in order to evaluate the 525 feasibility of entering into any such contract and to identify the potential 526 results, effectiveness and efficiency of such contract, provided there is a 527 significant public policy reason to enter into such privatization contract. 528 Raised Bill No. 1499 LCO No. 4155 19 of 43 Any such business case shall be approved in accordance with the 529 provisions of subdivision (4) of subsection (h) of this section. 530 (3) If any such proposed privatization contract would result in the 531 layoff, transfer or reassignment of [one hundred] twenty-five or more 532 state contracting agency employees, after consulting with the 533 potentially affected bargaining units, if any, the state contracting agency 534 shall notify the state employees or quasi-public agency employees of 535 such bargaining unit, as applicable, after such cost-benefit analysis is 536 completed. Such state contracting agency shall provide an opportunity 537 for [said] such employees to reduce the costs of conducting the 538 operations to be privatized and provide reasonable resources for the 539 purpose of encouraging and assisting such state or quasi-public agency 540 employees to organize and submit a bid to provide the services that are 541 the subject of the potential privatization contract. The state contracting 542 agency shall retain sole discretion in determining whether to proceed 543 with the privatization contract, provided the business case for such 544 contract is approved by the board. 545 (d) Any business case developed by a state contracting agency for the 546 purpose of complying with subsection (c) of this section shall include: 547 (1) The cost-benefit analysis as described in subsection (b) of this section, 548 (2) a detailed description of the service or activity that is the subject of 549 such business case, (3) a description and analysis of the state contracting 550 agency's current performance of such service or activity, (4) the goals to 551 be achieved through the proposed privatization contract and the 552 rationale for such goals, (5) a description of available options for 553 achieving such goals, (6) an analysis of the advantages and 554 disadvantages of each option, including, at a minimum, potential 555 performance improvements and risks attendant to termination of the 556 contract or rescission of such contract, (7) an analysis of the potential 557 impact of the proposed privatization contract on workers of color and 558 workers who are women, including whether such privatization contract 559 will lessen or increase historical patterns that produce inequities 560 between such workers and other workers, (8) an analysis of the 561 Raised Bill No. 1499 LCO No. 4155 20 of 43 qualitative impact of the proposed privatization contract on the existing 562 state workforce, (9) a description of the current market for the services 563 or activities that are the subject of such business case, [(8)] (10) an 564 analysis of the quality of services as gauged by standardized measures 565 and key performance requirements including compensation, turnover, 566 and staffing ratios, [(9)] (11) a description of the specific results-based 567 performance standards that shall, at a minimum be met, to ensure 568 adequate performance by any party performing such service or activity, 569 [(10)] (12) the projected time frame for key events from the beginning of 570 the procurement process through the expiration of a contract, if 571 applicable, [(11)] (13) a specific and feasible contingency plan that 572 addresses contractor nonperformance and a description of the tasks 573 involved in and costs required for implementation of such plan, and 574 [(12)] (14) a transition plan, if appropriate, for addressing changes in the 575 number of agency personnel, affected business processes, employee 576 transition issues, and communications with affected stakeholders, such 577 as agency clients and members of the public, if applicable. Such 578 transition plan shall contain a reemployment and retraining assistance 579 plan for employees who are not retained by the state or quasi-public 580 agency or employed by the contractor. If the primary purpose of the 581 proposed privatization contract is to provide a core governmental 582 function, such business case shall also include information sufficient to 583 rebut the presumption that such core governmental function should not 584 be privatized. Such presumption shall not be construed to prohibit a 585 state contracting agency from contracting for specialized technical 586 expertise not available within such agency, provided such agency shall 587 retain responsibility for such core governmental function. For the 588 purposes of this section, "core governmental function" means a function 589 for which the primary purpose is (A) the inspection for adherence to 590 health and safety standards because public health or safety may be 591 jeopardized if such inspection is not done or is not done in a timely or 592 proper manner, (B) the establishment of statutory, regulatory or 593 contractual standards to which a regulated person, entity or state 594 contractor shall be held, (C) the enforcement of statutory, regulatory or 595 Raised Bill No. 1499 LCO No. 4155 21 of 43 contractual requirements governing public health or safety, [or] (D) 596 criminal or civil law enforcement, or (E) the provision of essential 597 human services to residents of the state who would otherwise lack the 598 support necessary to assure basic human needs. If any part of such 599 business case is based upon evidence that the state contracting agency 600 is not sufficiently staffed to provide the core governmental function 601 required by the privatization contract, the state contracting agency shall 602 also include within such business case a plan for remediation of the 603 understaffing to allow such services to be provided directly by the state 604 contracting agency in the future. 605 Sec. 12. Subdivisions (2) to (4), inclusive, of subsection (l) of section 606 4e-16 of the general statutes are repealed and the following is 607 substituted in lieu thereof (Effective July 1, 2025): 608 (2) If such cost-benefit analysis identifies a ten per cent or more cost 609 savings to the state contracting agency from the use of such 610 privatization contract and such contract does not diminish the quality 611 of the service provided, such state contracting agency shall develop a 612 business case for the renewal of such privatization contract in 613 accordance with the provisions of subsections (d) and (e) of this section. 614 The board shall review such contract in accordance with the provisions 615 of subsections (f) to (h), inclusive, of this section and may approve such 616 renewal by the applicable vote of the board, provided any such renewal 617 that is estimated to cost in excess of one hundred fifty million dollars 618 annually or six hundred million dollars or more over the life of the 619 contract shall also be approved by the General Assembly prior to the 620 state contracting agency renewing such contract. If such renewal is 621 approved by the board and the General Assembly, if applicable, the 622 provisions of subsection (j) of this section shall apply to any proposed 623 amendment to such contract. 624 (3) If such cost-benefit analysis identifies a cost savings to the state 625 contracting agency of less than ten per cent, such state contracting 626 agency shall prepare a plan to have such service provided by state 627 Raised Bill No. 1499 LCO No. 4155 22 of 43 employees, [and] or, in the case of a state contracting agency that is a 628 quasi-public agency, by the employees of the quasi-public agency, and 629 shall begin to implement such plan, provided: (A) While such plan is 630 prepared, but prior to implementation of such plan, such state 631 contracting agency may develop a business case for such privatization 632 contract, in accordance with the provisions of subsection (d) of this 633 section, that achieves a cost savings to the state contracting agency of 634 ten per cent or more. Any such business case shall be reviewed by the 635 board in accordance with the provisions of subsections (f) to (h), 636 inclusive, of this section, and may be approved by the applicable vote of 637 the board; (B) such privatization contract shall not be renewed with the 638 vendor currently providing such service unless: (i) There exists a 639 significant public interest in renewing such contract, and (ii) such 640 renewal is approved by a two-thirds vote of the board; (C) the state 641 contracting agency may enter into a contract with a term of one year or 642 less for the provision of such service until such state contracting agency 643 implements such plan; and (D) the procedure for the transfer of funds 644 from the General Fund, as described in section 4-94, may be utilized to 645 allocate necessary resources for the implementation of the provisions of 646 this subdivision. 647 (4) Notwithstanding the provisions of subdivision (3) of this 648 subsection, the renewal of a privatization contract with a nonprofit 649 organization shall not be denied if the cost of increasing compensation 650 to employees performing the privatized service is the sole cause for such 651 contract not achieving a cost savings to the state contracting agency of 652 ten per cent or more. 653 Sec. 13. Subsection (n) of section 4e-16 of the general statutes is 654 repealed and the following is substituted in lieu thereof (Effective July 1, 655 2025): 656 (n) The State Contracting Standards Board, in consultation with the 657 Department of Administrative Services, shall: (1) Recommend and 658 implement standards and procedures for state contracting agencies to 659 Raised Bill No. 1499 LCO No. 4155 23 of 43 develop business cases in connection with privatization contracts, 660 including templates for use by state contracting agencies when 661 submitting business cases to the board, and policies and procedures to 662 guide state contracting agencies to complete such business cases, and (2) 663 develop guidelines and procedures for assisting state employees or 664 quasi-public agency employees whose jobs are affected by a 665 privatization contract. 666 Sec. 14. Subsection (p) of section 4e-16 of the general statutes is 667 repealed and the following is substituted in lieu thereof (Effective July 1, 668 2025): 669 (p) Prior to entering into or renewing any privatization contract that 670 is not subject to the provisions of subsection (a) of this section, the state 671 contracting agency shall evaluate such contract to determine if entering 672 into or renewing such contract is the most cost-effective method of 673 delivering the service, by determining the costs, as defined in subsection 674 (b) of this section, of such service. The state contracting agency shall 675 perform such evaluation in accordance with a template prescribed by 676 the Secretary of the Office of Policy and Management, in consultation 677 with the board, pursuant to subsection (m) of this section, and such 678 evaluation shall be [subject to verification by the secretary] submitted to 679 the board. The secretary may, in consultation with the Chief 680 Procurement Officer of the board, waive the requirement for an 681 evaluation of cost-effectiveness under this subsection upon a finding by 682 the secretary that exigent or emergent circumstances necessitate such 683 waiver. 684 Sec. 15. Section 4e-17 of the general statutes is repealed and the 685 following is substituted in lieu thereof (Effective July 1, 2025): 686 (a) Except as otherwise provided, the provisions of sections 4e-16 to 687 4e-47, inclusive, as amended by this act, shall apply to all contracts 688 solicited or entered into by [state contracting agencies] a state 689 contracting agency that is a state agency after June 1, 2010, and all 690 Raised Bill No. 1499 LCO No. 4155 24 of 43 contracts solicited or entered into by a state contracting agency that is a 691 quasi-public agency on or after July 1, 2025. 692 (b) Except as otherwise provided, the provisions of sections 4e-16 to 693 4e-47, inclusive, as amended by this act, shall apply to every 694 expenditure of public funds by any state contracting agency, 695 irrespective of their source, involving any state contracting agency 696 contracting and procurement processes, including, but not limited to, 697 leasing and property transfers, purchasing or leasing of supplies, 698 materials or equipment, consultant or consultant services, personal 699 service agreements, purchase of service agreements or privatization 700 contracts, [as defined in section 4e-1,] and, relating to contracts for the 701 construction, reconstruction, alteration, remodeling, repair or 702 demolition of any public building, bridge or road. 703 (c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this 704 act, shall be construed to require the application of procurement statutes 705 or regulations to a procurement that involves the expenditure of federal 706 assistance or federal contract funds if federal law provides procurement 707 procedures applicable to the expenditure of such funds, to the extent 708 such federal procedures are inconsistent with state procurement 709 statutes or regulations. 710 Sec. 16. Section 4e-18 of the general statutes is repealed and the 711 following is substituted in lieu thereof (Effective July 1, 2025): 712 For the purpose of obtaining supplies, materials, equipment or 713 contractual services, except infrastructure facilities, the Commissioner 714 of Administrative Services shall establish a requisition system to be used 715 by state contracting agencies that are not quasi-public agencies to 716 initiate and authorize the procurement process. Such system shall be 717 approved by the State Contracting Standards Board. 718 Sec. 17. Subsection (c) of section 4e-21 of the general statutes is 719 repealed and the following is substituted in lieu thereof (Effective July 1, 720 2025): 721 Raised Bill No. 1499 LCO No. 4155 25 of 43 (c) The State Contracting Standards Board, in consultation with the 722 Commissioner of Administrative Services, may waive the requirement 723 of competitive bidding or competitive negotiation in the case of minor, 724 nonrecurring or emergency purchases of ten thousand dollars or less in 725 amount, upon application of the state contracting agency. Any state 726 contracting agency that obtains such a waiver for such an emergency 727 purchase shall post notice of such emergency purchase on the Internet 728 web site of the state contracting agency prior to making such emergency 729 purchase. 730 Sec. 18. Section 4e-24 of the general statutes is repealed and the 731 following is substituted in lieu thereof (Effective July 1, 2025): 732 [Not later than June 1, 2010, the State Contracting Standards Board, 733 in consultation with the Commissioner of Administrative Services and 734 any other appropriate award authority, shall adopt regulations, in 735 accordance with the provisions of chapter 54, permitting] (a) If an 736 emergency [procurements when there exists] procurement is deemed 737 necessary by a state contracting agency due to a threat to public health, 738 welfare or safety, the state contracting agency shall give notice to the 739 board of the need for such emergency procurement. Such emergency 740 [procurements] procurement shall be made with competition, as is 741 practicable under the circumstances. [Said regulations shall require that] 742 The state contracting agency shall (1) include a written determination of 743 the basis for the emergency and for the selection of the particular 744 contractor [be included] in the contract file, [and transmitted] (2) 745 transmit such determination to the Governor, the president pro tempore 746 of the Senate, the majority and minority leaders of the Senate, the 747 speaker of the House of Representatives and the majority and minority 748 leaders of the House of Representatives, and (3) post such determination 749 on the Internet web site of the state contracting agency. 750 (b) The State Contracting Standards Board may adopt regulations in 751 accordance with the provisions of chapter 54 to implement the 752 provisions of this section. 753 Raised Bill No. 1499 LCO No. 4155 26 of 43 Sec. 19. Section 4e-27 of the general statutes is repealed and the 754 following is substituted in lieu thereof (Effective July 1, 2025): 755 Not later than June 1, 2010, the State Contracting Standards Board, in 756 consultation with the Attorney General, shall adopt regulations, in 757 accordance with the provisions of chapter 54, specifying the types of 758 contracts that may be used by state contracting agencies. Such 759 regulations shall specify that a cost-reimbursement contract may be 760 used only when a determination is made in writing by the agency 761 procurement officer that such contract is likely to be less costly to the 762 state contracting agency than any other type or that it is impracticable 763 to obtain the supplies, services or construction required except under 764 such a contract. 765 Sec. 20. Subsection (a) of section 4e-30 of the general statutes is 766 repealed and the following is substituted in lieu thereof (Effective July 1, 767 2025): 768 (a) A state contracting agency shall evaluate the financial condition 769 of all bidders or proposers prior to selecting a bidder or proposer to 770 perform a contract or subcontract. A state contracting agency may audit 771 the books and records of a contractor or any subcontractor under any 772 negotiated contract or subcontract to the extent that such books and 773 records relate to the performance of such contract or subcontract. Such 774 books and records shall be maintained by the contractor for a period of 775 three years from the date of final payment under the prime contract and 776 by the subcontractor for a period of three years from the expiration of 777 the subcontract. 778 Sec. 21. Section 4e-31 of the general statutes is repealed and the 779 following is substituted in lieu thereof (Effective July 1, 2025): 780 When, for any reason, collusion or other anticompetitive practices are 781 suspected among any bidders or proposers for [a state] the contract of a 782 state contracting agency, a notice of the relevant facts shall be 783 transmitted to the Attorney General by any affected party, including, 784 Raised Bill No. 1499 LCO No. 4155 27 of 43 but not limited to, the state contracting agency, a bidder or a proposer. 785 Sec. 22. Section 4e-34 of the general statutes is repealed and the 786 following is substituted in lieu thereof (Effective July 1, 2025): 787 (a) After reasonable notice and hearing and consultation with the 788 relevant state contracting agency and the Attorney General, the State 789 Contracting Standards Board, acting through a subcommittee of three 790 members, appointed by the chairperson, which subcommittee shall 791 include not less than one legislative appointee, may disqualify any 792 contractor, bidder or proposer, for a period of not more than five years, 793 from bidding on, applying for or participating as a contractor or 794 subcontractor under, contracts with [the state] a state contracting 795 agency. Such disqualification shall be upon the vote of two-thirds of the 796 members of the subcommittee present and voting for that purpose. Such 797 hearing shall be conducted in accordance with the provisions of chapter 798 54. The subcommittee shall issue a written recommendation not later 799 than sixty days after the conclusion of such hearing, and shall state the 800 reason for the recommended action and, if the disqualification is 801 recommended, the period of time the contractor, bidder or proposer 802 shall be disqualified. In determining whether to disqualify a contractor, 803 bidder or proposer, the subcommittee shall consider the seriousness of 804 the acts or omissions of the contractor, bidder or proposer and any 805 mitigating factors. Such recommendation shall be submitted to the 806 board for action and sent to the contractor by certified mail, return 807 receipt requested. If disqualification is recommended, the contractor 808 shall have thirty days to submit comments to the board. Upon receipt of 809 the proposed recommendation by the subcommittee, the board shall 810 issue a written decision either adopting, rejecting or modifying the 811 subcommittee's recommendation. Such decision shall be issued not later 812 than thirty days after receipt by the board of the contractor's comments, 813 if any. The board shall send the decision to the contractor by certified 814 mail, return receipt requested. The written decision shall be a final 815 decision for purposes of sections 4-180 and 4-183. 816 Raised Bill No. 1499 LCO No. 4155 28 of 43 (b) Causes for such disqualification shall include the following: 817 (1) Conviction of, or entry of a plea of guilty or nolo contendere or 818 admission to, the commission of a criminal offense as an incident to 819 obtaining or attempting to obtain a public or private contract or 820 subcontract, or in the performance of such contract or subcontract; 821 (2) Conviction of, or entry of a plea of guilty or nolo contendere or 822 admission to, the violation of any state or federal law for embezzlement, 823 theft, forgery, bribery, falsification or destruction of records, receiving 824 stolen property or any other offense indicating a lack of business 825 integrity or business honesty which affects responsibility as a state 826 contractor; 827 (3) Conviction of, or entry of a plea of guilty or nolo contendere or 828 admission to, a violation of any state or federal antitrust, collusion or 829 conspiracy law arising out of the submission of bids or proposals on a 830 public or private contract or subcontract; 831 (4) Accumulation of two or more suspensions pursuant to section 4e-832 35, as amended by this act, within a twenty-four-month period; 833 (5) A wilful, negligent or reckless failure to perform in accordance 834 with the terms of one or more contracts or subcontracts, agreements or 835 transactions with state contracting agencies; 836 (6) A history of failure to perform or of unsatisfactory performance 837 on one or more public contracts, agreements or transactions with state 838 contracting agencies; 839 (7) A wilful violation of a statutory or regulatory provision or 840 requirement applicable to a contract, agreement or transaction with 841 state contracting agencies; 842 (8) A wilful or egregious violation of the ethical standards set forth in 843 sections 1-84, 1-86e and 1-101nn, as determined by the Citizen's Ethics 844 Advisory Board; or 845 Raised Bill No. 1499 LCO No. 4155 29 of 43 (9) Any other cause or conduct the board determines to be so serious 846 and compelling as to affect responsibility as a [state] contractor, 847 including, but not limited to: 848 (A) Disqualification by another state for cause; 849 (B) The fraudulent or criminal conduct of any officer, director, 850 shareholder, partner, employee or other individual associated with a 851 contractor, bidder or proposer of such contractor, bidder or proposer; [, 852 provided such conduct occurred in connection with the individual's 853 performance of duties for or on behalf of such contractor, bidder or 854 proposer and such contractor, bidder or proposer knew or had reason 855 to know of such conduct;] 856 (C) The existence of an informal or formal business relationship with 857 a contractor who has been disqualified from bidding or proposing on 858 [state] contracts of any state contracting agency. 859 (c) Upon written request by the affected [state] contractor, bidder or 860 proposer, the State Contracting Standards Board may reduce the period 861 or extent of disqualification for a contractor, bidder or proposer if 862 documentation supporting any of the following reasons for 863 modification is provided to the board by the contractor, bidder or 864 proposer: 865 (1) Newly discovered material evidence; 866 (2) Reversal of the conviction upon which the disqualification was 867 based; 868 (3) Bona fide change in ownership or management; or 869 (4) Elimination of other causes for which the disqualification was 870 imposed. 871 Sec. 23. Section 4e-35 of the general statutes is repealed and the 872 following is substituted in lieu thereof (Effective July 1, 2025): 873 Raised Bill No. 1499 LCO No. 4155 30 of 43 (a) For purposes of this section and sections 4e-37, as amended by this 874 act, and 4e-38, as amended by this act, "contracting agency of the state" 875 does not include a quasi-public agency. After reasonable notice and a 876 hearing, conducted in accordance with the provisions of chapter 54, the 877 department head of any [state] contracting agency of the state may 878 suspend any contractor, bidder or proposer for a period of not more 879 than six months from bidding on, applying for or performing work as a 880 contractor or subcontractor under, contracts with the state. The 881 department head shall issue a written decision not later than ninety days 882 after the conclusion of such hearing and state in the decision the reasons 883 for the action taken and, if the contractor, bidder or proposer is being 884 suspended, the period of such suspension. In determining whether to 885 suspend a contractor, bidder or proposer, the department head shall 886 consider the seriousness of the acts or omissions of the contractor, 887 bidder or proposer and any mitigating factors. The department head 888 shall send such decision to the contractor and the State Contracting 889 Standards Board by certified mail, return receipt requested. Such 890 decision shall be a final decision for purposes of sections 4-180 and 4-891 183. 892 (b) Causes for such suspension shall include the following: 893 (1) Failure without good cause to perform in accordance with 894 specifications or within the time limits provided in the contract; 895 (2) A record of failure to perform or of unsatisfactory performance in 896 accordance with the terms of one or more contracts, provided failure to 897 perform or unsatisfactory performance caused by acts beyond the 898 control of the contractor shall not be considered to be a basis for 899 suspension; 900 (3) Any cause the complainant [state] contracting agency of the state 901 determines to be so serious and compelling as to affect the responsibility 902 of a state contractor, including suspension by another [state] contracting 903 agency of the state for cause; or 904 Raised Bill No. 1499 LCO No. 4155 31 of 43 (4) A violation of the ethical standards set forth in section 1-84, 1-86e 905 or 1-101nn, as determined by the Citizen's Ethics Advisory Board. 906 (c) The State Contracting Standards Board may grant an exception 907 permitting a suspended contractor to participate in a particular contract 908 or subcontract upon a written determination by the board that there is 909 good cause for such exception and that such exception is in the best 910 interest of the state. 911 (d) The department head of each [state] contracting agency of the 912 state shall conduct reviews of contractors and shall file reports 913 pertaining to any of the reasons set forth in this section that may be the 914 basis for disqualification. 915 Sec. 24. Subsections (g) to (i), inclusive, of section 4e-37 of the general 916 statutes are repealed and the following is substituted in lieu thereof 917 (Effective July 1, 2025): 918 (g) In the event that the appeals review subcommittee or the board 919 determines that a procedural violation occurred, or that allegations of 920 an unauthorized or unwarranted, noncompetitive selection process 921 have been substantiated, the board shall direct the [state] contracting 922 agency of the state to take corrective action not later than thirty days 923 after the date of the subcommittee's or board's decision, as applicable. 924 (h) In the event such appeal is found to be frivolous by the appeals 925 review subcommittee or the full board, such frivolous appeal may serve 926 as a basis for disqualification pursuant to section 4e-34, as amended by 927 this act. 928 (i) Any three members of the board may request a full board review 929 of any contract deliberation or award process of a [state] contracting 930 agency of the state. 931 Sec. 25. Section 4e-38 of the general statutes is repealed and the 932 following is substituted in lieu thereof (Effective July 1, 2025): 933 Raised Bill No. 1499 LCO No. 4155 32 of 43 The State Contracting Standards Board shall issue a decision in 934 writing or take other appropriate action on each appeal submitted 935 pursuant to section 4e-37, as amended by this act. A copy of any decision 936 shall be provided to all parties, the department head of the [state] 937 contracting agency of the state and the Chief Procurement Officer. 938 Sec. 26. Subdivision (2) of section 4e-40 of the general statutes is 939 repealed and the following is substituted in lieu thereof (Effective July 1, 940 2025): 941 (2) If the person awarded the contract acted in bad faith: 942 (A) The contract may be declared null and void; or 943 (B) The contract may be ratified and affirmed if such action is in the 944 best interests of the state, as determined by the State Contracting 945 Standards Board, in writing, without prejudice to the [state's] state 946 contracting agency's right to such damages as may be appropriate. 947 Sec. 27. Section 4e-45 of the general statutes is repealed and the 948 following is substituted in lieu thereof (Effective July 1, 2025): 949 With respect to infrastructure facilities, not later than June 1, 2010, the 950 State Contracting Standards Board, in consultation with the state 951 contracting agencies and the Attorney General, shall adopt regulations, 952 in accordance with the provisions of chapter 54, requiring the inclusion 953 in [state] contracts with any state contracting agency of clauses 954 providing for adjustments in prices, time of performance, remedies, 955 termination or other contract provisions necessary to protect the 956 interests of the state. 957 Sec. 28. Section 4e-46 of the general statutes is repealed and the 958 following is substituted in lieu thereof (Effective July 1, 2025): 959 Not later than June 1, 2010, the State Contracting Standards Board 960 shall adopt regulations, in accordance with the provisions of chapter 54, 961 concerning the procedure and circumstances under which a state 962 Raised Bill No. 1499 LCO No. 4155 33 of 43 contracting agency may allow contract modification, change order, or 963 contract price adjustment under a construction contract with the state 964 contracting agency in excess of fifty thousand dollars. Such regulations 965 shall require that every contract modification, change order or contract 966 price adjustment under a construction contract with [the] a state 967 contracting agency in excess of fifty thousand dollars shall be subject to 968 prior written certification by the fiscal officer of the state contracting 969 agency or other agency responsible for funding the project or the 970 contract, or other official responsible for monitoring and reporting upon 971 the status of the costs of the total project budget or contract budget, as 972 to the effect of the contract modification, change order, or adjustment in 973 contract price on the total project budget or the total contract budget. 974 Such regulations shall further provide that in the event the certification 975 of the fiscal officer or other responsible official discloses a resulting 976 increase in the total project budget or the total contract budget, the 977 agency procurement officer shall not execute or make such contract 978 modification, change order, or adjustment in contract price unless 979 sufficient funds are available or the scope of the project or contract is 980 adjusted so as to permit the degree of completion that is feasible within 981 the total project budget or total contract budget as it existed prior to the 982 contract modification, change order, or adjustment in contract price 983 under consideration provided, with respect to the validity, as to the 984 contractor, of any executed contract modification, change order, or 985 adjustment in contract price which the contractor has reasonably relied 986 upon, it shall be presumed that there has been compliance with the 987 provisions of this section. 988 Sec. 29. Subsection (a) of section 4e-48 of the general statutes is 989 repealed and the following is substituted in lieu thereof (Effective July 1, 990 2025): 991 (a) For the purposes of this section, "nonresident bidder" means a 992 business that is not a resident of the state that submits a bid in response 993 to an invitation to bid by a state contracting agency, "resident bidder" 994 means a business that submits a bid in response to an invitation to bid 995 Raised Bill No. 1499 LCO No. 4155 34 of 43 by a state contracting agency and that has paid unemployment taxes or 996 income taxes in this state during the twelve calendar months 997 immediately preceding submission of such bid, has a business address 998 in the state and has affirmatively claimed such status in the bid 999 submission, and "contract" [means "contract" as defined in section 4e-1 1000 and "state contracting agency" means] and "state contracting agency"[, 1001 as defined] have the same meanings as provided in section 4e-1, as 1002 amended by this act. 1003 Sec. 30. Section 4e-72 of the general statutes is repealed and the 1004 following is substituted in lieu thereof (Effective July 1, 2025): 1005 As used in this section, "contract", "state contracting agency", "data" 1006 and "contractor" have the same meanings as provided in section 4e-1, as 1007 amended by this act. Any contract between a state contracting agency 1008 and a contractor that is entered into, renewed or amended on or after 1009 October 1, 2021, or, in the case of a state contracting agency that is a 1010 quasi-public agency, entered into, renewed or amended on or after July 1011 1, 2025, shall contain a provision authorizing the state contracting 1012 agency to access any data concerning such contract that is in the 1013 possession or control of the contractor upon demand in a format 1014 prescribed by the state contracting agency at no additional cost to such 1015 agency. 1016 Sec. 31. Subdivision (15) of subsection (a) of section 15-31b of the 1017 general statutes is repealed and the following is substituted in lieu 1018 thereof (Effective July 1, 2025): 1019 (15) Invest in, acquire, lease, purchase, own, manage, hold and 1020 dispose of real property and lease, convey or deal in or enter into 1021 agreements with respect to such property on any terms necessary or 1022 incidental to carrying out the purposes of sections 15-31a to 15-31i, 1023 inclusive, provided such transactions shall not be subject to approval, 1024 review or regulation by any state agency pursuant to title 4b or any other 1025 provision of the general statutes, except (A) the authority shall not 1026 Raised Bill No. 1499 LCO No. 4155 35 of 43 convey fee simple ownership in any property associated with the ports 1027 or harbors under its jurisdiction and control without the approval of the 1028 State Properties Review Board and the Attorney General, and (B) as 1029 provided in [subsection (c) of this section] chapter 62; and 1030 Sec. 32. Subsections (b) and (c) of section 15-31b of the general statutes 1031 are repealed and the following is substituted in lieu thereof (Effective July 1032 1, 2025): 1033 (b) The authority shall continue as long as it has bonds or other 1034 obligations outstanding and until its existence is terminated by law, 1035 provided no such termination shall affect any outstanding contractual 1036 obligation of the authority and the state shall succeed to the obligations 1037 of the authority under any contract. Upon the termination of the 1038 existence of the authority, all its rights and properties shall pass to, and 1039 be vested in, the state of Connecticut. 1040 [(c) On and after June 23, 2021, the authority shall be a state 1041 contracting agency for the purposes of chapter 62, except for the 1042 provisions of section 4e-16, and shall be subject to the authority of the 1043 State Contracting Standards Board established under section 4e-2.] 1044 Sec. 33. Section 10a-196 of the general statutes is repealed and the 1045 following is substituted in lieu thereof (Effective July 1, 2025): 1046 Sections 10a-176 to 10a-195, inclusive, shall be deemed to provide a 1047 complete, additional and alternative method for the doing of the things 1048 authorized thereby, and shall be regarded as supplemental and 1049 additional to powers conferred by other laws; provided the issuance of 1050 bonds and refunding bonds under the provisions of this chapter need 1051 not comply with the requirements of any other law applicable to the 1052 issuance of bonds including, particularly, title 42a; and provided in the 1053 construction and acquisition of a project pursuant hereto the authority 1054 need not comply with the requirements of chapter 50. Except as 1055 otherwise expressly provided in this chapter and the provisions of 1056 chapter 62 concerning state contracting agencies, none of the powers 1057 Raised Bill No. 1499 LCO No. 4155 36 of 43 granted to the authority under the provisions of this chapter shall be 1058 subject to the supervision or regulation or require the approval or 1059 consent of any municipality or political subdivision or any commission, 1060 board, body, bureau, official or agency thereof or of the state. 1061 Sec. 34. Subsection (s) of section 10a-204b of the general statutes is 1062 repealed and the following is substituted in lieu thereof (Effective July 1, 1063 2025): 1064 (s) The provisions of this section shall be deemed to provide a 1065 complete, additional and alternative method for the actions and the 1066 things authorized thereby and shall be regarded as supplemental and 1067 additional to powers granted by other laws; the issuance of bonds, notes 1068 or other obligations under the provisions of this section need not comply 1069 with the requirements of any law applicable to the issuance of bonds, 1070 notes or other obligations. This section, being necessary for the welfare 1071 of the state and its inhabitants, shall be liberally construed to affect its 1072 purpose. None of the powers granted to the corporation or to any 1073 subsidiary created pursuant to subdivision (5) of section 10a-204 under 1074 the provisions of this section shall be subject to the supervision or 1075 regulation or require the approval or consent of any municipality or 1076 political subdivision or any department, division, commission, board, 1077 body, bureau, official or agency thereof or of the state, and the exercise 1078 thereof shall not cause the corporation or any such subsidiary to be 1079 construed to be an agency within the scope of chapter 54 or a 1080 department, institution or agency of the state, except that the 1081 corporation or any such subsidiary shall comply with the provisions of 1082 chapter 62 concerning state contracting agencies. 1083 Sec. 35. Section 10a-243 of the general statutes is repealed and the 1084 following is substituted in lieu thereof (Effective July 1, 2025): 1085 The provisions of this chapter shall be deemed to provide a complete, 1086 additional and alternative method for the actions of the things 1087 authorized thereby and shall be regarded as supplemental and 1088 Raised Bill No. 1499 LCO No. 4155 37 of 43 additional to powers granted by other laws; the issuance of revenue 1089 bonds or notes and revenue refunding bonds or notes under the 1090 provisions of this chapter need not comply with the requirements of any 1091 other law applicable to the issuance of bonds or notes. This chapter, 1092 being necessary for the welfare of the state and its inhabitants, shall be 1093 liberally construed to effect its purpose. Except as otherwise expressly 1094 provided in this chapter and the provisions of chapter 62 concerning 1095 state contracting agencies, none of the powers granted to the authority 1096 under the provisions of this chapter shall be subject to the supervision 1097 or regulation or require the approval or consent of any municipality or 1098 political subdivision or any department, division, commission, board, 1099 body, bureau, official or agency thereof or of the state. The authority 1100 shall not be construed to be an agency within the scope of chapter 54 or 1101 a department, institution or agency of the state. 1102 Sec. 36. Subdivision (16) of subsection (b) of section 12-806 of the 1103 general statutes is repealed and the following is substituted in lieu 1104 thereof (Effective July 1, 2025): 1105 (16) To invest in, acquire, lease, purchase, own, manage, hold and 1106 dispose of real property and lease, convey or deal in or enter into 1107 agreements with respect to such property on any terms necessary or 1108 incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-1109 818, inclusive, and sections 12-853 and 12-854, provided such 1110 transactions shall not be subject to approval, review or regulation 1111 pursuant to title 4b or any other statute by any state agency, except that 1112 real property transactions shall be subject to review by the State 1113 Properties Review Board and contracts shall be subject to the provisions 1114 of chapter 62 concerning state contracting agencies; 1115 Sec. 37. Section 12-815 of the general statutes is repealed and the 1116 following is substituted in lieu thereof (Effective July 1, 2025): 1117 (a) The corporation shall establish and adopt specific policies, rules 1118 and procedures on purchasing and contracting. Such policies, rules and 1119 Raised Bill No. 1499 LCO No. 4155 38 of 43 procedures or amendments thereto shall be approved by a two-thirds 1120 vote of the entire board. Notwithstanding any other provision of law to 1121 the contrary, the corporation may enter into management, consulting 1122 and other agreements for the provision of goods, services and 1123 professional advisors necessary or useful in connection with the 1124 operation and management of the lottery (1) pursuant to a process of 1125 open or competitive bidding, provided (A) the corporation shall first 1126 determine the format, content and scope of any agreement for any 1127 procurement of goods or services, the conditions under which bidding 1128 will take place and the schedule and stipulations for contract award, and 1129 (B) the corporation may select the contractor deemed to have submitted 1130 the most favorable bid, considering price and other factors, when, in the 1131 judgment of the corporation, such award is in the best interests of the 1132 corporation, or (2) if the corporation, in its discretion, determines that, 1133 due to the nature of the agreement to be contracted for or procured, 1134 open or public bidding is either impracticable or not in the best interests 1135 of the corporation, by negotiation with such prospective providers as 1136 the corporation may determine. The terms and conditions of agreements 1137 and the fees or other compensation to be paid to such persons shall be 1138 determined by the corporation. The agreements entered into by the 1139 corporation in accordance with the provisions of this section shall not 1140 be subject to the approval of any state department, office or agency, 1141 except for the provisions concerning state contracting agencies in 1142 chapter 62 and as provided in regulations adopted by the Department 1143 of Consumer Protection. Nothing in this section shall be deemed to 1144 restrict the discretion of the corporation to utilize its own staff and 1145 workforce for the performance of any of its assigned responsibilities and 1146 functions whenever, in the discretion of the corporation, it becomes 1147 necessary, convenient or desirable to do so. Copies of all agreements of 1148 the corporation shall be maintained by the corporation at its offices as 1149 public records, subject to said exemption. 1150 (b) [The] Except for the provisions in chapter 62 concerning state 1151 contracting agencies, the corporation shall not be subject to rules, 1152 Raised Bill No. 1499 LCO No. 4155 39 of 43 regulations or restrictions on purchasing or procurement or the 1153 disposition of assets generally applicable to Connecticut state agencies, 1154 including those contained in titles 4a and 4b and the corresponding 1155 rules and regulations. The board shall adopt rules and procedures on 1156 purchasing, procurement and the disposition of assets applicable to the 1157 corporation. The adoption of such rules or procedures shall not be 1158 subject to chapter 54. Any such rules or procedures shall be a public 1159 record as defined in section 1-200. 1160 Sec. 38. Subdivision (14) of section 31-49h of the general statutes is 1161 repealed and the following is substituted in lieu thereof (Effective July 1, 1162 2025): 1163 (14) Make and enter into any contract or agreement necessary or 1164 incidental to the performance of its duties and execution of its powers. 1165 [The] Except for the provisions in chapter 62 concerning state 1166 contracting agencies, the contracts and agreements entered into by the 1167 authority shall not be subject to the approval of any other state 1168 department, office or agency, provided copies of all such contracts shall 1169 be maintained by the authority as public records, subject to the 1170 proprietary rights of any party to such contracts. No contract shall 1171 contain any provision in which any contractor derives any direct or 1172 indirect economic benefit from denying or otherwise influencing the 1173 outcome of any claim for benefits. The standard criteria for the 1174 evaluation of proposals relating to claims processing, web site 1175 development, database development, marketing and advertising, in the 1176 event the authority seeks the services of an outside contractor for such 1177 tasks, and for the evaluation of proposals relating to all other contracts 1178 in amounts equal to or exceeding two hundred fifty thousand dollars 1179 shall include, but need not be limited to: (A) Transparency, (B) cost, (C) 1180 efficiency of operations, (D) quality of work related to the contracts 1181 issued, (E) user experience, (F) accountability, and (G) a cost-benefit 1182 analysis documenting the direct and indirect costs of such contracts, 1183 including qualitative and quantitative benefits that will result from the 1184 implementation of such contracts. The establishment of additional 1185 Raised Bill No. 1499 LCO No. 4155 40 of 43 standard criteria shall be approved by a two-thirds vote of the board 1186 after such criteria have been posted on a public Internet web site 1187 maintained by the authority for notice and comment for at least one 1188 week prior to such vote. 1189 Sec. 39. Subdivision (13) of section 38a-1083 of the general statutes is 1190 repealed and the following is substituted in lieu thereof (Effective July 1, 1191 2025): 1192 (13) Make and enter into any contract or agreement necessary or 1193 incidental to the performance of its duties and execution of its powers, 1194 including, but not limited to, an agreement with the Office of Health 1195 Strategy to use funds collected under this section for the operation of 1196 the all-payer claims database established under section 19a-755a and to 1197 receive data from such database. The contracts entered into by the 1198 exchange shall not be subject to the approval of any other state 1199 department, office or agency, provided copies of all contracts of the 1200 exchange shall be maintained by the exchange as public records, subject 1201 to the proprietary rights of any party to the contract, except (A) as 1202 provided in chapter 62, and (B) any agreement with the Office of Health 1203 Strategy shall be subject to approval by said office and the Office of 1204 Policy and Management and no portion of such agreement shall be 1205 considered proprietary; 1206 Sec. 40. Subsection (b) of section 46a-10b of the general statutes is 1207 repealed and the following is substituted in lieu thereof (Effective July 1, 1208 2025): 1209 (b) Notwithstanding the provisions of sections 4-212 to 4-219, 1210 inclusive, subdivision [(21)] (20) of section 4e-1, as amended by this act, 1211 and chapter 62a, not later than July 1, 2017, the Governor shall designate 1212 a nonprofit entity to serve as the Connecticut protection and advocacy 1213 system. 1214 Sec. 41. Subsection (e) of section 52-278n of the general statutes is 1215 repealed and the following is substituted in lieu thereof (Effective July 1, 1216 Raised Bill No. 1499 LCO No. 4155 41 of 43 2025): 1217 (e) Notwithstanding the provisions of subsections (a) to (d), inclusive, 1218 of this section, no party may compel disclosure of the names and 1219 addresses of clients of an individual or entity that provides professional 1220 services, as defined in subdivision [(20)] (19) of section 4e-1, as amended 1221 by this act, when the disclosure of such names and addresses would 1222 constitute a violation of state or federal law, or the applicable rules of 1223 professional conduct governing such profession, as the case may be. 1224 Sec. 42. Subsection (c) of section 52-351b of the general statutes is 1225 repealed and the following is substituted in lieu thereof (Effective July 1, 1226 2025): 1227 (c) Notwithstanding the provisions of this section, no party may 1228 compel disclosure of the names and addresses of clients of an individual 1229 or entity that provides professional services, as defined in subdivision 1230 [(20)] (19) of section 4e-1, as amended by this act, when the disclosure of 1231 such names and addresses would constitute a violation of state or 1232 federal law, or the applicable rules of professional conduct governing 1233 such profession, as the case may be. 1234 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 July 1, 2025 4e-1 Sec. 3 July 1, 2025 4e-2(g) Sec. 4 July 1, 2025 4e-3 Sec. 5 July 1, 2025 4e-4 Sec. 6 July 1, 2025 4e-5(a) to (c) Sec. 7 July 1, 2025 4e-7(a) Sec. 8 July 1, 2025 4e-8 Sec. 9 July 1, 2025 4e-10(a) Sec. 10 July 1, 2025 4e-14 Sec. 11 July 1, 2025 4e-16(c) and (d) Sec. 12 July 1, 2025 4e-16(l)(2) to (4) Raised Bill No. 1499 LCO No. 4155 42 of 43 Sec. 13 July 1, 2025 4e-16(n) Sec. 14 July 1, 2025 4e-16(p) Sec. 15 July 1, 2025 4e-17 Sec. 16 July 1, 2025 4e-18 Sec. 17 July 1, 2025 4e-21(c) Sec. 18 July 1, 2025 4e-24 Sec. 19 July 1, 2025 4e-27 Sec. 20 July 1, 2025 4e-30(a) Sec. 21 July 1, 2025 4e-31 Sec. 22 July 1, 2025 4e-34 Sec. 23 July 1, 2025 4e-35 Sec. 24 July 1, 2025 4e-37(g) to (i) Sec. 25 July 1, 2025 4e-38 Sec. 26 July 1, 2025 4e-40(2) Sec. 27 July 1, 2025 4e-45 Sec. 28 July 1, 2025 4e-46 Sec. 29 July 1, 2025 4e-48(a) Sec. 30 July 1, 2025 4e-72 Sec. 31 July 1, 2025 15-31b(a)(15) Sec. 32 July 1, 2025 15-31b(b) and (c) Sec. 33 July 1, 2025 10a-196 Sec. 34 July 1, 2025 10a-204b(s) Sec. 35 July 1, 2025 10a-243 Sec. 36 July 1, 2025 12-806(b)(16) Sec. 37 July 1, 2025 12-815 Sec. 38 July 1, 2025 31-49h(14) Sec. 39 July 1, 2025 38a-1083(13) Sec. 40 July 1, 2025 46a-10b(b) Sec. 41 July 1, 2025 52-278n(e) Sec. 42 July 1, 2025 52-351b(c) Statement of Purpose: To make revisions to provisions concerning the State Contracting Standards Board recommended by the board, including by giving the board authority over quasi-public agency procurement, prohibiting the Governor from reducing allotments to the board, requiring the online posting of emergency procurements, revising requirements regarding proposed privatization contracts, and providing that provisions in title 4e supersede certain other provisions. Raised Bill No. 1499 LCO No. 4155 43 of 43 [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.]